If the world without a strong American economy struggles, so too does an America without a strong California economy.
The Golden State, which once represented the promise of America, is mired in swampland of broken promises, graft, political stupidity and liberal fantasy.
And if California represents the very best government that liberals can give us- and it likely does- then this country had better take a deep breath and step away from progressive math.
Because, it just doesn’t add up.
California has a government that is structurally unable to support its’ addiction to runaway government spending- like DC; they have “balanced” their budget based on the fantasy that the federal government will bail them out with increased taxes- like DC; they have municipalities in thrall to public sector unions- governments choosing union benefits over investor rights- like DC did in the GM bankruptcy.
“Step right up, ladies and gentleman, and buy a bond. Don’t worry. It’s safe. If we can’t pay, we’ll just declare bankruptcy. And hit you for another loan.”
California is leading the new wave of city bankruptcies in a feat of fiscal irresponsibility never before matched in the history of our Republic.
And it could be spreading to other states.
If there is a crisis in confidence in the country, it starts in California.
The state’s leading export used to be escapist fantasy enabled by movie studios.
Today it’s escapist fantasy enabled by tax receipts, modern credit and bankruptcy laws.
“Beautiful credit! The foundation of modern society,” wrote Mark Twain, who knew a little about California dodges and exigencies. “Who shall say that this is not the golden age of mutual trust, of unlimited reliance upon human promises? That is a peculiar condition of society which enables a whole nation to instantly recognize point and meaning in the familiar newspaper anecdote, which puts into the mouth of a distinguished speculator in lands and mines this remark: ‘I wasn't worth a cent two years ago, and now I owe two millions of dollars.’”
Oh and it’s not just credit where California is leading the nation.
In the government corruption field they are doing pretty well too.
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 28th 2014 | John Ransom
NEW TIME Today, at 9:30 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for January 26th, 2014 | John Ransom