(snippet)
We’re left with the question: what happens when California defaults?
The worst case would be the mother of all financial crises. According to the California State Treasurer’s office, California has over $68 billion in public debt, but the Sacramento Bee’s Dan Walters has tried to count total California public debt, including that of local municipalities, and his total reaches $500 billion. Whatever the amount, the impact of default could be larger than the debt amount would imply. Other states – New York, Illinois, New Jersey, for example – are in almost as bad shape as California, and they could follow California’s example. The realization that a state could default would shock markets every bit as much as when Lehman Brothers failed. Given the precarious state of our economy and the financial sector, another fiscal crisis would be disastrous, with impacts far beyond California’s borders.
What would a California default look like? In a sense, we’ve already seen California default, when that state issued vouchers. If any company tried that, they would be in bankruptcy court in days. Issuing vouchers didn’t trigger a California crisis because banks were willing to honor the vouchers. If banks refuse to honor the vouchers next time, employees and vendors won’t be paid, and state operations will come to a halt. This could happen if our legislature locks up and is unable to act on the current $21 billion problem.
LINK HERE
Small-business bankruptcies rise 81% in California
With credit tight and consumers still pinching their pennies, many business owners find they can't go on.
LINK HERE
Illinois should just declare bankruptcy and get it over with. Tax revenues can't keep up and the PTB seem incapable of basic math. They just say some nice words and push it off until "next year".
ReplyDeleteI plan to leave the state and it's mismanaged finances behind.
+1 on leaving the state.
ReplyDeleteI'm going to miss the sunshine though.
Here's what every American should do:
ReplyDelete1. Pay with cash only.
2. Stop doing business with Bank of America, Citibank, JP Morgan Chase (and all of the other large banks).
3. Stop paying all of your taxes. If you keep paying your taxes, the Government will continue to find new ways to tax you (they keep reminding us of this fact every day).
What happens when Calfornia defaults?
ReplyDeleteLooting/Burning breaks out in all major CA cities which eventually leads to raging gun battles.
The rest of the US celebrates (schadenfreude) because this is proof positive of what happens when a state discards reality and pursues a liberal fiscal policy.
Guys, relax. California default will not happen so quickly. The article mentioned that the banks honour the vouchers. For as long as they honour the vouchers, nothing will collapse. What the banks are doing now is they transfer real assets from Government hands to private hands. Once they owe everything that you used to owe, then the banks will organize a collapse. Until then, sleep safely as you have being doing for the past 90 years. And why would you care if your water supply doesn’t belong to a city, but to some private individual, like Hank Paulson? Your state land belongs not to the state, but to a private cartel headed by the “Smoked but did not inhale”. In both cases they keep you out of this land anyway.
ReplyDeleteFor those hating on Cali-
ReplyDeleteBe careful what you wish for...If we go YOU ALL pretty much sink with us...Not including the violence things might actually be worse in many red states.
Reason why you ask? Most rublican states are actually the biggest tax dollar whores as opposed to states like Cali/NY which only get something like 80 cents on every dollar they give the feds.
That and Cali is like what? 1/6th of the US economy...So in other words...If we go YOU all go with us...Some here maybe better prepped but in the end who wants to be in North Dakota eating cold spam while they peek out their windows for "looters & renegades?"
Cali is runned by fools/full of gangbangers/blood sucking illegals and all around idiots BUT there's good people here too...Let us sink if we must...But don't hate cus Karma is quite a vindictive lady.
With love and sassiness from Monterey-
Noodles123
Yet once again I reiterate. What is the difference ? Since the state cannot create money like the Fed. they create vouchers - just like the old Boom mining towns did. As long as the populace think it's worth something guess what? It is ! Magic and has worked for a long, long time. Anyone here old enough to remember "script".
ReplyDeleteI spent a ton of it in my youth - it bought the groceries just as well as a siver certificate.
I agree with 1:09pm. No american should have any 'shadenfruade' about any other american's problems. We're all in this together, one nation under a groove.
ReplyDeleteYeah, 'script' is what knowleadgeable people call 'Federal Reserve Notes'. It's all the same shit.
Paper coupons. The problem is if they overprint the paper coupons they become less valuable.
California could and very well may print their own currency.
I just hope they don't have a picture of Arnold on them.
Cali is actually like the 6th largest economy in the entire world. Bigger than france, bigger than the UK , bigger than italy, etc.
So if Cali goes the whole world is going to have very big problems.
4:37 See !!!! Now your gettin' it !!!!
ReplyDeleteIt's ALL the same shit !!!
Yes it is -----
Some of "it" the peoples trust ie: Am.Dollars; Swiss Franc - whatever.
Some lose the peoples trust ie: Ruble;Argentine Peso - whatever!
Know what the difference between ALL these worthless pieces of paper is ????
Now --- your catching on ----
Very few people visiting this site seem to under
stand that very profound little FACT.
The TRUTH WILL SET YOU FREE
If we tank, my life won't change. I'm already broke, unemployed and uninsured.
ReplyDeleteI'm working on my garden. A few neighbors have citrus trees, so we can barter our food supplies. I used to keep rabbits as pets. A female's pregnancy is 28 days and most litters are 6-8. My neighbor told me how during the war (WWII) about the only source of meat in my city (Anaheim CA) was rabbit. I suppose we could farm Catfish from swimming pools...
I was in Home Depot today. The store was really dark, perhaps 50% of the lights were off. There were so few customers, I seriously thought they were closing the store early.
This Christmas season will be a bust and next year will be a nightmare.
Consider hydroponic gardening, a year round food source.
regarding Cali..... it's not "IF" folks, it's happening now, today. Slowly, but it is happening. Slo Mo Collapse.... oh so slow.....
ReplyDeleteuntil ?
so how does Taxifornia dig its self out of a SIX hundred billion dollar unfunded debt monster///??
ReplyDeleteI live in Canada, did some research on hydroponic gardening, the only thing that bothered me about it was the necessary electricity to run it. Made me sad.
ReplyDelete2010 an apocalypse
ReplyDeleteThe crash begins in earnest
10 Million Arnolds lie in wait
We should enjoy the last days of this year. CA will go down, as will many other states, not to mention the entire economy. And now you see BS propaganda articles saying OBL's family lives in Iran (LOL,LOL). Since Americans are so dumbed down, they would not know the difference in Arabs and Persians, not to mention the tribes. Most American sheeple can not find the Pacific Ocean on a map, much less Iran.
ReplyDeleteIf Israel (which means the US) bombs Iran, that will be the starting point. And it will be chaos squared for us in the US.
Better prepare now, time is very short.
9:20
ReplyDeleteArnold will not admit that 1/5 of the budget crisis in CA is directly related to the presence of millins of Mexican, illegals in the state.
- Deport the illegals
- This will free up lots of housing statewide
- This will free up jobs that teens used to have, like cutting grass and dishwashing and car washing.
- The list is endless.
The Employment Development Agency is for all practical purposes, broke. Millions of Californians will soon see their compensation checks stop every 2 weeks. Once this happens, some will act like sheeple and do what their are told. Others will try to survive without breaking any laws, but when the days comes that our children collectively say, "daddy I'm hungry", that's when things will get really ugly.
Gerald Celente says it best:
"When people lose everything, they lose it".
When you have nothing left to lose, your animal instinct kicks in and you start kicking ass.
Schwarzenegger Seeks Obama’s Help for Deficit Relief
ReplyDeleteThe nascent recovery has yet to produce any job gains, a drag on states that rely on income and retail sales taxes.
“California, which is more than three times bigger than Greece, is running out of money,” T.J. Marta, chief market strategist at Marta On The Markets LLC, a financial-research firm in Scotch Plains, New Jersey, told Bloomberg Radio today.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aKc0QT2U7Gc0
Union backed, government employees are another issue that needs to be addressed. Union workers are no better than the rest of us, yet they have a fit every time the subject of wage and benefit reductions comes to visit.
ReplyDeleteWhen my former employer fired me, I would have gladly taken a pay cut, rather than be kicked to the curb.
And more stuff to ruin your day.
ReplyDeleteI about wanted to go Rambo after I heard that a clerk's union at the Port of Los Angeles cried for more money. They sit in front of a PC all day, doing data entry. $48.00 per hour was not enough, they wanted more.
As a State Worker in Cali I 100% agree that 2/3rds of state workers are pretty much usless mouth breathers...I love my country/state but if we have to sink to drown all the rats then f*ck it.
ReplyDeleteWhat's so hard in this equation is so many old/sick/young that will suffer badly causing 1-2 wasted generations.
I'm talking millions of lost youth, crimes that were unthinkable...A permenated depression and gloom...But in the end sometimes things like this have to happen in order for people to wake up...I'm not religious but in trouble time people either:
1. Try to be religious and follow some sort of code
2. Becoming savvy and trying to educate themselves to break the mode
3. Break down into the sewer and give into crime or substance abuse
I see 30% coming out stronger...The rest? Idiots by nature/bad parenting/lack of interest in education.
Mexico went through a crash...Education system destroyed for lack of funds but you know what? They do trig and calc in most junior highs...The kids there are smart, savvy and business oriented...Politically aware and know world policies...Remember the only ones that come this way are the poor...Not all of us ride burros and sleep on cacti with our big ass sombreros.
In the end...The crash made families tighter and kids smarter...As for the US? I fear for what's coming.
-Noodles123
In 1998 'They' collapsed Argentina.
ReplyDeleteYou watched on TV as the spectacle unfolded.
Overnight, an entire previously well to do country went into abject poverty, never to recover.
And now, in co-operation with Metro-Goldwyn Mayer, The Central Intelligence Agency, Columbia Motion Pictures, Stanley Kubrick, Noam Chomsky, The Bohemain Grove, CFR, Rockefellor foundation with financial advice provided by Rothschild LLC, DBC, CPA, ESR, Inc, Probono:
In Amazing new 'Reality Sound and Vision' so real it will ASTOUND you. A lucas Film THX Production you will never forget and will change you permanently! A multi trillion dollar production! The biggest ever!
GAYCOCK TYRONE ASSBART WASHINGTON, JR, THE THIRD STARS IN:
ONE FLEW OVER THE MOTHERFUCKING WHITEHOUSE, BITCHES
Dog poet, wtf. Neither Noam Chomsky nor Stanley Kubrick has anything to do with the crumbling economy. And all the others are only indirectly involved, if at all, not the sole cause. Reality if your fiction.
ReplyDeleteAnd 8:00 AM don't turn it into a race issue, as usual. This is apparently your sounding board to spread your idiotic race agenda (as if anyone cared).
is*
ReplyDeleteBe crisis savvy
ReplyDeletePhotocopy money
Enter the dragon
ReplyDeleteExit the printing press
everyone photocopy ass, and the sheeple just love it and want more and I can sell it for 50% off.
ReplyDelete