Dead state walking
The
economic collapse is coming. It is coming soon. Whoever wins this
election this fall will be the President who has to deal with it.
Where
is the great collapse coming and what will happen?
In
America, we have a dead state walking. It is the lead domino. It
will fall and it will fall soon. When it does, it will set off a chain
reaction. The government will have to act, whether it wants to or not.
The
dead state walking?
California.
California
died some time ago. It just hasn’t had the good manners to fall down
yet. California is a poster child for the failure of liberal
economics. The last dying gasp of conservatism in California was Prop 13
in 1978 to limit property taxes. That one worked. Since
then every tax in California has gone through the roof. So has government spending.
Every
lunatic liberal idea that can be invented is being used in California.
The result is predictable. Everyone who has a business that can move is moving. Everyone who has a job
that can move is moving. The only people who are not moving are
government employees and those on public assistance.
Over
a twenty-five year period, California added a net sum of over 10 million
people. Unfortunately for California, only 150,000 of those new residents were
taxpayers.
California’s
situation has been called a Greek Tragedy. Comparing California to Greece
is not a bad analogy. They have both made the same mistakes.
Both
California and Greece expanded every sector of the public that is dependent on
the government. From government employees receiving lavishsalaries and benefits, to state government retirees receiving lavish retirement benefits to the overly generous public assistance
benefits.
California
has the highest tax rates in the nation and in November,
there will be a referendum to raise those taxes even higher.
Assuming that happens, the middle class in California will continue to
shrink.
Businesses are fleeing California in record numbers. Not only do they face hightaxes, they
face insane regulations. When the Great Obama Depression kicked
into full force, one recommendation was that California waive its version of
“Cap and Trade” which has been driving up energy prices in California.
The proposal was to suspend cap and trade until unemployment dropped below
6%. That modest proposal died.
So
where does California go from here?
California
is unwilling to cut its spending. It cannot tax enough to
keep up with its spending. The end result is going to be an economic
implosion.
California
will go bankrupt. Many of it’s cities have already gone bankrupt.
Unfortunately
for California, the United States
Constitution prohibits
individual states from declaring bankruptcy.
So
what happens when California goes insolvent?
It
will not be pretty.
We
will see a societal collapse like we have never seen in the United
States. When California collapses there will be huge pressure on
the Federal Government to bail it out.
If
Obama is still in the White House, he will want to. After all, it gives him
a chance to spend more money and he must try to maintain the illusion that
socialism is not a failure.
For
those of us who live in real American states, the question we all have to ask
is why should we bail California out? If the Federal Government bails
California out, it will change nothing, as California will need more bailouts
down the road. We have seen this in Europe as one bailout
follows another. If California gets a bailout, Illinois will want
one, as will New York and New Jersey.
If
we do not bail out California, we will see massive riots by those who are
dependent on government largess. California will descend into anarchy.
What
does America do?
Simply
throwing money at the problem will not work. California needs to be changed.
If
California cannot manage its problems then perhaps it is time for California to
cease to exist as a state. If California has to go into receivership, the
price for decades of stupidity should be that California goes from becoming a
state to becoming an American territory. If after a few years,
California can get its act back together, then it can petition to become a
state again.
California
is a disaster. The leaders of California are like the Captain of the
Titanic, except the leaders of California, backed the Titanic up and hit the
iceberg five more times.
There
are areas where conservatives still live in California. Unfortunately
California’s government is monopolized by liberals, and this shows no sign of
changing.
If
Obama is reelected, California will be but the first domino to fall in the
chain reaction that will rip America apart. If Romney is elected, we at
least have a chance.
Meanwhile
California remains America’s dead state walking.
sage: In
his State of the Union address, President Obama announced the forming of a
joint federal and state task force under the umbrella of the Attorney General.
New York’s Attorney General office has been trying to bring Wall Street banks
to task for packaging and selling mortgage-backed bonds. It looks like they are
finally succeeding.
