California

California may be the spot where economic collapse begins and we’re lucky enough have a ringside seat to see it all.

There are days when you wonder if anyone in Sacramento actually comprehends the predicament in which they’ve put the one-time Golden State. Based on a new dispute between legislators, the answer seems to be a resounding no.

Marcia Fritz, CPA and president of the California Foundation for Fiscal Responsibility (which is pushing for major public pension reform) explains:

“I was testifying on problems with using collective bargaining to negotiate pension changes when individuals on both sides gain from benefit changes, and elected officials are bribed through campaign contributions to go along,” Fritz told us. “Since kids can’t vote, and they are the ones who have to pay the unfunded liabilities created by these selfish decisions, it’s a form of abuse.”

So in her testimony, Fritz uttered these words: “It’s tantamount to fiscal child abuse.”

That’s when the feces hit the fan. The state’s social workers are horrified with the supposedy poor choice of words.

“Anyone in the public eye should not be demeaning the plight of victims,” social worker Sarah Taylor says. “It goes against nature, what I see, where the parents are inflicting violence and sexual abuse on children. To compare that to a fiscal system, it’s appalling.”

Of course, the regular cast of characters lined up to denounce Fritz. David Low of the California School Employees Association said Fritz’s simply wants to inflame people’s anger.

California is screwed. Totally, completely, absolutely screwed. No doubt, no question. And yet in these perilous times, a spokesman for the CSEA is worried about offensive words.

What he should be appalled by are the actions of the state legislature.

They’re not guilty of fiscal child abuse. They’re guilty of fiscal murder. First degree.

Source: Orange County Register

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This is one of those moments when I ask myself why the hell I went to college. Now that I see the kind of money you can make by just sitting in the sun and chatting up attractive, blonde California beach babes, I consider those four years a complete waste of time.

The only compensating factor is that if I could sleep at night, I would be sleeping secure in the knowledge that I haven’t contributed to the fiscal disaster that awaits us.

Let me warn you: Be prepared to be pissed off when you read this story from the Orange County Register.

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If California were a movie, it would be Dead Man Walking. No one on the Democrat side of the aisle wants to admit it and the public sector unions certainly don’t wait to admit it, but the state’s overly generous pension program is a demographic and fiscal time bomb.

No, let us reconsider that analogy. It’s more of a suicide bomber. Except that the dynamite vest has been strapped onto the unwitting bodies of the state’s taxpayers.

Just how unfair, unrealistic and unsustainable is it? City Journal came up with a fascinating way to look at the problem facing California today and the rest of the country tomorrow:

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California’s environmental laws are not only insane, they are based upon flawed science and studies. But who cares, if it makes the Golden State greener, no matter the cost to that other green known as money.

The California Air Resources Board (CARB) claims that diesel pollution emitted from buses and trucks contributes to 2,000 premature deaths in California each year. But hold on just a sec, the lead author of the study that was used to justify the new regulations falsified his education history (he purchased his PhD from an online diploma mill). The study is flawed, says UCLA epidemiologist Dr. James Enstrom, and the number should be closer to zero.

In 2005 Enstrom authored an extensive study that found no relationship between diesel particulates and premature deaths. He charges that the agency hell bent on passing more and more stringent regulations have ignored his and other evidence.

The video highlights Dwayne Whitney, who started his trucking business decades ago with one truck. Today he has eighteen and 20 employees. But he doesn’t think it will be around in a few years, as CARB’s new air quality regulations will render hiss entire fleet illegal.

“The State of California says my trucks are killing people,” says Whitney. “What do you say to that?”

Oh, and by the way, Dr. Enstrom has been fired from his job of 34 years at UCLA for blowing the whistle the study. That’s the way environmentalism works today — the truth, and truthseekers, just get in the way of God’s work.

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“The unions don’t want any accountability, they put incompetent adults ahead of children.”

That’s a quote from from former Los Angeles Mayor Richard Riordan, in an interview with Reason.tv’s Tim Cavanaugh.

He tells Cavanaugh that while he has been quite a critic of current L.A. Mayor Antonio Villaraigos, he’s become a fan ever since he “dropped the atomic bomb” on the unions by saying publicly that they are in the way of educational reform.

Riordan is encouraged that although Sacramento is still overwhelmingly controlled by the unions, there’s a break in the ice and increased public awareness of the problem, especially with Villaraigos blaming the unions for our failed education system.

He goes on to discuss state and local budget crises, one upping Meredith Whitney an her call for 100 cities to go bankrupt, with this quote:

“Throughout the country, 90 percent of cities and states are going to go bankrupt within the next five years, many of them sooner.”

Ouch.

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States are Bankrupt. Day of Reckoning is at Hand.

by Mark on December 19, 2010 21:42 pm · Comments/Link

The 60 Minutes story begins:

By now, just about everyone in the country is aware of the federal deficit problem, but you should know that there is another financial crisis looming involving state and local governments.

It has gotten much less attention because each state has a slightly different story. But in the two years, since the “great recession” wrecked their economies and shriveled their income, the states have collectively spent nearly a half a trillion dollars more than they collected in taxes. There is also a trillion dollar hole iln their public pension funds.

The states have been getting by on billions of dollars in federal stimulus funds, but the day of reckoning is at hand. The debt crisis is already making Wall Street nervous, and some believe that it could derail the recovery, cost a million public employees their jobs and require another big bailout package that no one in Washington wants to talk about.

What a mess. All we need is a collapsing Europe and war in Korea. Good thing there’s no chance of that.

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As a Californian, I tremble at the thought of Jerry Brown about to be sworn in as my Governor. Many of you won’t believe this quote to be true, but it is; he is the man who said we need “more welfare and fewer jobs.” No, that was not from the sixties, that was a 55-year old Brown, in 1995, when he’d already served two terms as California governor. Once a socialist, always a socialist. Here’s his complete quote:

Jery BrownThe conventional viewpoint says we need a jobs program and we need to cut welfare. Just the opposite! We need more welfare and fewer jobs. Jobs for every American is doomed to failure because of modern automation and production. We ought to recognize it and create an income-maintenance system so every single American has the dignity and the wherewithal for shelter, basic food, and medical care. I’m talking about welfare for all. Without it, you’re going to have warfare for all. Without a universal health care like every other civilized country, without a minimum level of income, this country will explode. You can’t blame the guy at the bottom forever. At some point there’s a reaction and we’ll see that the real criminals are those calling the tune, making the rules, and walking to the bank.

This is the man who has to save California. And he finds it in the worst condition it’s ever been. The state faces a $28-billion budget gap for the next 18 months, and roughly $20-billion deficits annually through the 2015-16 fiscal year. Brown remarked at a budget forum in Los Angeles this week: “We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.” Ya think?

Anyone shocked at what California has become does not deserve to be governor. Every thinking person in the state saw it coming.

Brown says his first order of business is to complete a budget agreement within two months of unveiling his budget on January 10. This would give him time to hold a late-spring special election that would ask California voters what they’d like to do about spending and taxes.

During the campaign, he said that he would not raise taxes without voter approval. Excuse me for laughing. First of all, politicians lie, so I don’t necessarily believe him. But secondly, it’s not exactly difficult to get California voters to pass tax increases. Last month, they failed in passing a proposition that would have voided a previous proposition that imposes billions of energy surcharges on Californians, all in the name of global warming; and it was widely publicized as proven that that initial proposition was based upon fault climate models (not to mention that global warming is a scam, by the way). But fail it did. And of course, we continued our support (not me!) our free-spending democrats.

Expect drastic cutbacks in services, scare tactics from law enforcement, fire and teacher unions, and then watch the liberals and illegals run to vote for tax increase for all the rich. Almost 10% for individuals at $47K is and a 1% surcharge for “millionaires” is not enough for the wealthy bastards. Businesses will fail, productive people will leave, and Jerry will be going hat-in-hand to Washington looking for a bailout.

At least State Treasurer Bill Lockyer is starkly realistic. After listening to educators tell him and Brown that they cannot sustain ANY cuts, he had this to say:

“Anyone who thinks we get by that without everyone getting hit probably should live in Mendocino County,” he said, referring to the region known for marijuana growing. “There are going to be cuts.”

“So far, I’ve heard good ideas about how to spend more money. Great. It ain’t there. It’s time to make cuts, I believe deep cuts,” Lockyer said. “I’d do the 25% across the board and just say those who wanted less government, you’re going to get your wish. In other communities that are willing to put something on the ballot to make up that difference, they’re going to have a higher service level.”

Good for you, Bill. But, maybe I should still move to Greece.

Source: Los Angeles Times

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California Unemployment Fund is $20 Billion in Debt

by Mark on October 24, 2010 15:36 pm · 2 comments

it’s scary how headlines like this no longer shock us.

In this clip, the Reason Foundation’s Adrian Moore breaks down how the state’s unemployment insurance fund is $20 Billion in debt, yet continues to hand out unemployment checks.

It’s the California way.

http://www.youtube.com/watch?v=3T-QqrDRfVI

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