blogs.sacbee.com— California will run out of cash by early March if the state does not take swift action to find $3.3 billion through payment delays and borrowing, according to a letter...
Jan 31, 2012View in Crawl 4
Its too bad california cant just start printing its own money like the federal government does. Then it could just print the amount of money they needed and voila! no budget deficit!
This is a fool proof plan as we all know because it has worked out so well at the federal level. We all know absolutely nothing bad can happen when you just print money to cover your deficits.
In fact, why have taxation at all? Why not let us all keep our money and just print the money we need to run the government? I cant believe no one but me has thought of this before. Im a genius! I will write a letter to Obama telling him to end taxation and just print the money we need for everything!
Brilliant!
What could possibly go wrong with this ground breaking idea? I should win a noble prize for this.
My peers in this state simply won't face reality. And I am hoping that when given no choice at all they'll finally realize they were wrong all along. Or at the very least the moderates that normally don't care what happens will suddenly take an interest when it becomes clear that the ruling democrats will plunder what riches the state has left while driving away all economic opportunities.
It's not all of California, just the government that has run out of money. The citizens of California still have plenty of money left.
There really is a simple fix that everyone seems to be overlooking. The State of California has the power to "tax" its residents (the ultimate beneficiary of its services). So all the government has to do is tax the people more to make up the difference.
lol, the ultimate beneficiary of government taxation are those connected to government (public sector workers, well connected corporations...).
You can try and make the link that the general population benefits from government services. But it's pretty far flung. Not just in terms of waste and inefficiency and overpaying for the cost of services, but also in services people don't want/value. Do you really value the war on drugs? But the government is doing it. And prison guard unions, police officers, lawyers, prison corporations... are all beneficiaries.
You have to be f'ing kidding me! I hope you were being sarcastic. You think the state should just tax the citizens more?! I literally just s#it myself reading your comment. You don't think it has anything to do with the absolute out of control spending that state does?! This is exactly what you get when demorats are in control. A fine example for the rest of the country.
#1: Go clean yourself up. That is gross.
#2: This isn't a Dem vs. Rep issue, as Republicans have owned the governor's chair for 24 out of the last 28 years in California.
#3: I was being ironic.Comment is buried, click here to see the rest.
2: Democrats have control the legislature for most of that period, and Governor Davis was in office for more than 4 years as he was recalled during his second term.
"Since former Gov. George Deukmejian’s final budget in FY 1990-91, state spending—including
the General Fund, special funds, and bond funds—has increased 180.9 percent, or an average of
5.91 percent a year. Spending increased from $51.4 billion in FY 1990-91 to $96.4 billion 10
years later in FY 2000-01. And spending continued to skyrocket to its current level of $144.5
billion in FY 2008-09. Since FY 1990-91, General Fund spending alone has increased 156.8
percent, or 5.37 percent a year (see Figure 1)."
Man you are stupid. CA has raised taxes during the recession and revenue has fallen. Brown is going to try to put tax increases on the ballot as Swarzenegger did in 2007. We shoved those up his ass by 70% margins.
Yes your are. High taxes and regulation drive out business. Raising taxes in a recession as CA has done has driven down revenue. The issue here is that CA voters were smart enough to put a 2/3 majority clause for raising income taxes in the law. This keeps the CA legislature in check. Look at states with high unemployment. What characterizes these are high taxes. What the legislature has done is raise "fees" i.e. taxes and business taxes.
Revenue = tax rate x economic activity. Reduce the first term and increase the second term greatly and revenue increases. During the GW between 2000-2006 CA increased its revenue due to by 48% and increased spending by double that amount. Its not hard to see where the problem lies.
Chiang said additional cash management solutions are needed because state tax revenues are $2.6 billion less than what Gov. Jerry Brown and state lawmakers assumed in their optimistic budget last year. Meanwhile, Chiang said, the state is spending $2.6 billion more than state leaders planned on.
Progressives. California, what are you thinking???
"Progressives. California, what are you thinking???"
That the average California voter should have been aborted at birth. Cali is one of the few states that did not boot out incumbents in 2010... Cali got exactly what it voted for.
FYI it's not Jerry Brown that's the issue, Meg Whitman would have the same exact issue as would anyone else, it's the LEGISLATORS YOU MORONS KEEP IN POWER YEAR AFTER YEAR!!!!!!!!!!!!!!!!!!!!!!!!
I don't see why a liberal state would elect a conservative, but you're probably right that either way the spending would still have been out of control.
I'm pretty sure that California has had a republican governor from 1983 through 1999, and then from 2003 to 2011. That would be 24 out of the last 28 years under republican leadership, wouldn't it?Comment is buried, click here to see the rest.
The point is that there has consistently been a mix of leadership. Government overspending is NOT a political party issue, it is a government issue. Doesn't matter who controls the legislature, or the executive branch. We see mixes all the time. For such a "liberal" state like CA they are fine with conservative leadership in the governor's office, and do have quite a mix in the legislature.
This tells me that neither party cares much about overspending. How this tells other people that only liberals spend too much money is beyond me.Comment is buried, click here to see the rest.
As much as we feel it necessary and satisfying to mock the moron democrats who sank California, the bad reality is that we're losing one of our major capital ships which is about to sink into the briny depths. The democrats are in fact sinking the whole country, and the world with it. And all the while shoving their fat fingers in the Conservatives faces and screeching about "Fat Cats" and "Corporate Greed" and inciting the OWS to riot. I'm not saying there hasn't been plenty of corporate malfeasance, but Congress is to blame for that. They create the laws by which the Corporations have run themselves, and when the criminal activity became deadly obvious, Congress took zero action except to hand them several trillion more dollars, putting the rest of us into debt slavery in the process. Too bad the Republicans are all talk and no action, and half the Republican party are RINOs anyway. The true Conservatives are vastly outnumbered and out gunned. This country, and the world, is about to take it on the chin in a big way. How can it not? California sinking is just the beginning. I have a bad feeling about this. It ain't going to be pretty. So put your Adventure Hats on. This is going to get real interesting.
To paraphrase someone:
You shouldn't wait for the right politician to do the right thing.
Wait for the wrong politician to be forced to do the right thing.
The US is broke and conditions will be such that democrat, republican, or 3rd party will be forced to address these issues in the next decade or two. Of that you can be sure.
Now, they can do the right thing, or they go completely wacko. But change will happen.
California has a most aggressive tax with holding scheme. If you are married and have two incomes they have you claim "single or married with 2 incomes." Even if you claim the maximum 10 deductions you end up way over paying them. Then every year when you file your taxes and due a refund we get the same old threats. CA is a classic lesson in how liberals destroy a states business climate and budget.
FTA: "He said $5.4 billion was small relative to the $10 billion state leaders were prepared to borrow last year."....
Isn't that about $140 to $150 for every man woman and child in the state?
Now figure how many families there actually pay taxes.. It may be a couple of hundred bucks per person... Family of 5 = $1000.00??
You still don't get it, pickle. Yeah, OK, maybe it will save your state's bacon this time, but what happens with the year comes without a Google or Facebook Santa Claus?
You don't "get" it...can you not see that we are the only thing keeping this country floating?...and yet you consistent talk s**t about us on the mediums that we created? You stupid, stupid hypocrites.
C'mon man! Now see here, they just posted a story about a new Yoga room at San Fran airport. Now there's a LOT of comedy there, and it says volumes about how wisely your money is spent in Cali.
Stop taking yourselves so seriously. You're not the 'only thing keeping this country floating', believe me. We would somehow get along without your entertainment or your ideas on how to keep a checkbook 'balanced' on a statewide level.
You do realize that California's contribution to the nations GDP is roughly as much as the bottom 25 contributing states combined, right?
I'm looking at you SC, KY, OK, IA, KS, NV, UT, AR, DC, MS, NE, NM, HI, WV, DE, NH, ID, ME, RI, AK, SD, WY, MT, ND, VT
I've lived in California my entire life. Don't confuse the f**ked up Government with the private sector. California has a great agricultural industry (though water wars and environmental nuts are causing it to decline), we had a great aerospace industry (which has been declining for decades and moving to other states), we have a great tech industry (which I'm a part of) though its growth has significant stagnated.
California is one of the more populous states in the Union, so you could add up 25 other states and they might equate to the same population.
Not as many liberals there destroying the economy and creating ridiculous tax laws. Although this will likely change soon. A lot of liberals, the rich ones, the former tax base California used to enjoy, are moving to Oregon too. Now that they've made California an unsustainable entitlement hole they'll repeat the process elsewhere. And then move away again once complete.
pivenFeb 1, 2012
Chances helicopter Ben will print more US Government paper to bailout Kalifornia like he is bailing out European banks with US paper ?
What could go wrong ?
njdoo7Feb 1, 2012
I would take 9:1 odds that he will start flooding Kalifornia with freshly created money, monetizing their debt.
ghengiskhan1Jan 31, 2012
Its too bad california cant just start printing its own money like the federal government does. Then it could just print the amount of money they needed and voila! no budget deficit!
This is a fool proof plan as we all know because it has worked out so well at the federal level. We all know absolutely nothing bad can happen when you just print money to cover your deficits.
In fact, why have taxation at all? Why not let us all keep our money and just print the money we need to run the government? I cant believe no one but me has thought of this before. Im a genius! I will write a letter to Obama telling him to end taxation and just print the money we need for everything!
Brilliant!
What could possibly go wrong with this ground breaking idea? I should win a noble prize for this.
liberalstoogeJan 31, 2012
ghengiskhan1 for president!
professorpeakJan 31, 2012
ghengiskhan1 for president!
ChuppacabraFeb 1, 2012
Second!
stevanoskiFeb 3, 2012
ditto
StopAnimalTortureFeb 1, 2012
It's so crazy it must work!
theonewhoknowsFeb 1, 2012
It's called inflation. Look it up.
superkendallFeb 1, 2012
Sure there would be inflation, but since you don't pay taxes any more it would totally offset the inflation! Brilliance! ;-)
theonewhoknowsFeb 1, 2012
Brilliant!
njdoo7Feb 1, 2012
But the fed can starting buying muni bonds with digitally created money.
I do also wonder why we tax directly if budget deficits don't matter and we can inflate (tax indirectly) our way out.
ghengiskhan1Feb 1, 2012
Maybe its just to give congress something to do so they feel important. You know, to build their self esteem.
limitgovFeb 1, 2012
The California Government is about to run out of money. Good, let them learn how to balance a budget the hard way, no more bailouts.
partrowJan 31, 2012
California is already bankrupt. Yet spending is main menu item.
I doubt if they will ever learn. They seem to want fiscal ruin.
karmashockFeb 2, 2012
As a Californian, I can't wait.
My peers in this state simply won't face reality. And I am hoping that when given no choice at all they'll finally realize they were wrong all along. Or at the very least the moderates that normally don't care what happens will suddenly take an interest when it becomes clear that the ruling democrats will plunder what riches the state has left while driving away all economic opportunities.
ka5p3rFeb 1, 2012
3 examples why California is going broke.
http://fullertonstories.com/salary-comparison-teachers-versus-private-sector/
http://www.ocregister.com/news/claims-317704-city-workers.html
http://online.wsj.com/article/SB10001424052748704132204576285471510530398.html
public employee unions loves you.
chordonblueJan 31, 2012
No! Say it isn't so! I'm shocked, SHOCKED, that Cali should go belly up. Surely more money can be found for useless government programs somewhere...
theonewhoknowsFeb 1, 2012
It's not all of California, just the government that has run out of money. The citizens of California still have plenty of money left.
There really is a simple fix that everyone seems to be overlooking. The State of California has the power to "tax" its residents (the ultimate beneficiary of its services). So all the government has to do is tax the people more to make up the difference.
Problem solved.Comment is buried, click here to see the rest.
scamper22Feb 1, 2012
lol, the ultimate beneficiary of government taxation are those connected to government (public sector workers, well connected corporations...).
You can try and make the link that the general population benefits from government services. But it's pretty far flung. Not just in terms of waste and inefficiency and overpaying for the cost of services, but also in services people don't want/value. Do you really value the war on drugs? But the government is doing it. And prison guard unions, police officers, lawyers, prison corporations... are all beneficiaries.
mantiskungfuFeb 1, 2012
You have to be f'ing kidding me! I hope you were being sarcastic. You think the state should just tax the citizens more?! I literally just s#it myself reading your comment. You don't think it has anything to do with the absolute out of control spending that state does?! This is exactly what you get when demorats are in control. A fine example for the rest of the country.
theonewhoknowsFeb 1, 2012
#1: Go clean yourself up. That is gross.
#2: This isn't a Dem vs. Rep issue, as Republicans have owned the governor's chair for 24 out of the last 28 years in California.
#3: I was being ironic.Comment is buried, click here to see the rest.
ultimisFeb 1, 2012
2: Democrats have control the legislature for most of that period, and Governor Davis was in office for more than 4 years as he was recalled during his second term.
"Since former Gov. George Deukmejian’s final budget in FY 1990-91, state spending—including
the General Fund, special funds, and bond funds—has increased 180.9 percent, or an average of
5.91 percent a year. Spending increased from $51.4 billion in FY 1990-91 to $96.4 billion 10
years later in FY 2000-01. And spending continued to skyrocket to its current level of $144.5
billion in FY 2008-09. Since FY 1990-91, General Fund spending alone has increased 156.8
percent, or 5.37 percent a year (see Figure 1)."
http://www.google.com/url?sa=t&rct=j&q=california%20spending%20by%20year&source=web&cd=2&ved=0CC0QFjAB&url=http%3A%2F%2Freason.org%2Ffiles%2Fa2ec7caccc5d660e870c4a21526ef5f8.pdf&ei=f6gpT_DqOsSbiQLG2pGaCg&usg=AFQjCNHIVI8QdhNJoiqkF_WqmFKATELT2A&cad=rja
sandylandersFeb 2, 2012
Theone,
Man you are stupid. CA has raised taxes during the recession and revenue has fallen. Brown is going to try to put tax increases on the ballot as Swarzenegger did in 2007. We shoved those up his ass by 70% margins.
theonewhoknowsFeb 2, 2012
I'm pretty sure that I'm not stupid.
sandylandersFeb 2, 2012
Theone,
Yes your are. High taxes and regulation drive out business. Raising taxes in a recession as CA has done has driven down revenue. The issue here is that CA voters were smart enough to put a 2/3 majority clause for raising income taxes in the law. This keeps the CA legislature in check. Look at states with high unemployment. What characterizes these are high taxes. What the legislature has done is raise "fees" i.e. taxes and business taxes.
Revenue = tax rate x economic activity. Reduce the first term and increase the second term greatly and revenue increases. During the GW between 2000-2006 CA increased its revenue due to by 48% and increased spending by double that amount. Its not hard to see where the problem lies.
http://www.post-gazette.com/pg/12029/1206481-435-0.stm
theonewhoknowsFeb 2, 2012
No I'm not. You should read a bit more before calling someone stupid.
markglFeb 1, 2012
Chiang said additional cash management solutions are needed because state tax revenues are $2.6 billion less than what Gov. Jerry Brown and state lawmakers assumed in their optimistic budget last year. Meanwhile, Chiang said, the state is spending $2.6 billion more than state leaders planned on.
Progressives. California, what are you thinking???
omgscienceFeb 1, 2012
"Progressives. California, what are you thinking???"
That the average California voter should have been aborted at birth. Cali is one of the few states that did not boot out incumbents in 2010... Cali got exactly what it voted for.
dallen201181Feb 1, 2012
Uggh, How much longer are we stuck with Jerry for?
omgscienceFeb 1, 2012
FYI it's not Jerry Brown that's the issue, Meg Whitman would have the same exact issue as would anyone else, it's the LEGISLATORS YOU MORONS KEEP IN POWER YEAR AFTER YEAR!!!!!!!!!!!!!!!!!!!!!!!!
superkendallFeb 1, 2012
They put themselves in permeant power through re-districting.
charlotte_webFeb 1, 2012
This is the "Hope and Change" that liberals want to bring to the rest of the country!
professorpeakJan 31, 2012
The liberal solution to everything is more taxes. They will never see cutting spending on their welfare state as the problem.
theonewhoknowsFeb 1, 2012
If only they had elected a conservative to office... then I'm sure their spending would have been in check. Just like Bush II, Bush I, Reagen...
njdoo7Feb 1, 2012
I don't see why a liberal state would elect a conservative, but you're probably right that either way the spending would still have been out of control.
theonewhoknowsFeb 1, 2012
I'm pretty sure that California has had a republican governor from 1983 through 1999, and then from 2003 to 2011. That would be 24 out of the last 28 years under republican leadership, wouldn't it?Comment is buried, click here to see the rest.
njdoo7Feb 1, 2012
I still don't see why, as the best metrics I find show there are 42% more democrats than republicans in CA:
"Of the 17,304,091 California voters registered for the November 4, 2008 general election:[20]
44.4% were Democrats
31.3% were Republicans
4.4% were affiliated with other political parties
19.9% were ("Decline to State") voters"
http://en.wikipedia.org/wiki/Politics_of_California#Political_parties
Maybe it has something to do with the ca political system, but either way it's beside the point we both seem to agree on.
"you're probably right that either way the spending would still have been out of control."
Assuming you are correct that it was majorly led by a republicans in the past couple decades, this statement seems even more true.
ferretmanFeb 1, 2012Submitter
@theonewho - Republican != conservative. Democrat != liberal.
theonewhoknowsFeb 1, 2012
@ferretman - Republican ~ conservative. Democrat ~ liberal.
hi808Feb 2, 2012
But hasn't the legislature has been solidly Democratic the whole time?
theonewhoknowsFeb 2, 2012
The point is that there has consistently been a mix of leadership. Government overspending is NOT a political party issue, it is a government issue. Doesn't matter who controls the legislature, or the executive branch. We see mixes all the time. For such a "liberal" state like CA they are fine with conservative leadership in the governor's office, and do have quite a mix in the legislature.
This tells me that neither party cares much about overspending. How this tells other people that only liberals spend too much money is beyond me.Comment is buried, click here to see the rest.
superkendallFeb 1, 2012
Regan did reduce spending actually.
publikjohn9Feb 1, 2012
*cough* Reagan.........
publikjohn9Feb 1, 2012
You accidentally Reagan.
rowlodgeFeb 1, 2012
California is almost its own little country, they'll get a bailout like Greece then another and another,,,
smpaisnutrientsFeb 1, 2012
Bailouts didnt save greece tho.
chordonblueFeb 1, 2012
Not yet, but they keep trying... ;)
ghengiskhan1Feb 1, 2012
If at first you dont succeed, try try try try try try try try try again. Why not? Its not their money.
hi808Feb 2, 2012
"Do or Do not. There is no try."
StopAnimalTortureFeb 1, 2012
As much as we feel it necessary and satisfying to mock the moron democrats who sank California, the bad reality is that we're losing one of our major capital ships which is about to sink into the briny depths. The democrats are in fact sinking the whole country, and the world with it. And all the while shoving their fat fingers in the Conservatives faces and screeching about "Fat Cats" and "Corporate Greed" and inciting the OWS to riot. I'm not saying there hasn't been plenty of corporate malfeasance, but Congress is to blame for that. They create the laws by which the Corporations have run themselves, and when the criminal activity became deadly obvious, Congress took zero action except to hand them several trillion more dollars, putting the rest of us into debt slavery in the process. Too bad the Republicans are all talk and no action, and half the Republican party are RINOs anyway. The true Conservatives are vastly outnumbered and out gunned. This country, and the world, is about to take it on the chin in a big way. How can it not? California sinking is just the beginning. I have a bad feeling about this. It ain't going to be pretty. So put your Adventure Hats on. This is going to get real interesting.
scamper22Feb 1, 2012
To paraphrase someone:
You shouldn't wait for the right politician to do the right thing.
Wait for the wrong politician to be forced to do the right thing.
The US is broke and conditions will be such that democrat, republican, or 3rd party will be forced to address these issues in the next decade or two. Of that you can be sure.
Now, they can do the right thing, or they go completely wacko. But change will happen.
StopAnimalTortureFeb 1, 2012
I'm going to put my money on "go wacko".
dave713Feb 1, 2012
Yet the state gov't doesn't know how to cut up their credit cards.....?
omgscienceFeb 1, 2012
And the state voters don't know how to vote pigs out of power...
theonewhoknowsFeb 1, 2012
No, it really isn't that simple.
sandylandersFeb 2, 2012
California has a most aggressive tax with holding scheme. If you are married and have two incomes they have you claim "single or married with 2 incomes." Even if you claim the maximum 10 deductions you end up way over paying them. Then every year when you file your taxes and due a refund we get the same old threats. CA is a classic lesson in how liberals destroy a states business climate and budget.
fertilebastardFeb 2, 2012
FTA: "He said $5.4 billion was small relative to the $10 billion state leaders were prepared to borrow last year."....
Isn't that about $140 to $150 for every man woman and child in the state?
Now figure how many families there actually pay taxes.. It may be a couple of hundred bucks per person... Family of 5 = $1000.00??
laurahoustonFeb 1, 2012
Thats what california gets for sending 46k per prisoner to arizonas private for profit prisons.
DamnAirFreshFeb 1, 2012
These games need to cease. Don't believe the hype.
theonewhoknowsFeb 1, 2012
OK.
DamnAirFreshFeb 1, 2012
These games need to cease. Don't believe the hype.
theonewhoknowsFeb 1, 2012
I said Ok, already.
Closed AccountFeb 1, 2012
http://www.usatoday.com/money/industries/technology/story/2012-01-13/california-budget-facebook-ipo-windfall/52536774/1
Save your tears...the land of fruits and nuts will be fine. And we'll even let you bitch about us on the very medium that we created.
You're welcome, ingrates.Comment is buried, click here to see the rest.
chordonblueFeb 1, 2012
You still don't get it, pickle. Yeah, OK, maybe it will save your state's bacon this time, but what happens with the year comes without a Google or Facebook Santa Claus?
Closed AccountFeb 1, 2012
You don't "get" it...can you not see that we are the only thing keeping this country floating?...and yet you consistent talk s**t about us on the mediums that we created? You stupid, stupid hypocrites.
http://voices.washingtonpost.com/ezra-klein/2010/04/the_red_state_ripoff.htmlComment is buried, click here to see the rest.
chordonblueFeb 1, 2012
C'mon man! Now see here, they just posted a story about a new Yoga room at San Fran airport. Now there's a LOT of comedy there, and it says volumes about how wisely your money is spent in Cali.
Stop taking yourselves so seriously. You're not the 'only thing keeping this country floating', believe me. We would somehow get along without your entertainment or your ideas on how to keep a checkbook 'balanced' on a statewide level.
monkeywithgunFeb 1, 2012
You do realize that California's contribution to the nations GDP is roughly as much as the bottom 25 contributing states combined, right?
I'm looking at you SC, KY, OK, IA, KS, NV, UT, AR, DC, MS, NE, NM, HI, WV, DE, NH, ID, ME, RI, AK, SD, WY, MT, ND, VT
I think the US would find it quite difficult to get along without California.Comment is buried, click here to see the rest.
ChuppacabraFeb 1, 2012
I'm praying to God California just breaks off and floats away into the Pacific Ocean.
I'll have instant beach front property here in AZ.
Surf's up, Dudes!
ferretmanFeb 1, 2012Submitter
@monkey - Hey, I'm willing to try it.....
ultimisFeb 1, 2012
I've lived in California my entire life. Don't confuse the f**ked up Government with the private sector. California has a great agricultural industry (though water wars and environmental nuts are causing it to decline), we had a great aerospace industry (which has been declining for decades and moving to other states), we have a great tech industry (which I'm a part of) though its growth has significant stagnated.
California is one of the more populous states in the Union, so you could add up 25 other states and they might equate to the same population.
madrigalianFeb 1, 2012
News Flash: Facebook is moving to Oregon.
Not as many liberals there destroying the economy and creating ridiculous tax laws. Although this will likely change soon. A lot of liberals, the rich ones, the former tax base California used to enjoy, are moving to Oregon too. Now that they've made California an unsustainable entitlement hole they'll repeat the process elsewhere. And then move away again once complete.
Closed AccountFeb 1, 2012
Facebook's data center is moving to Oregon, you twit. Do you even know what a datacenter is?
http://blog.facebook.com/blog.php?post=262655797130
This is where Facebook really is and is not moving for a LOOOONNNG while.
http://www.facebook.com/note.php?note_id=277444485636222
Menlo Park, CALIFORNIA....just south of San Francisco....so NOPE you are wrong on all counts....zip, zap, see ya!Comment is buried, click here to see the rest.