How do you spell banana republic? . . .
Gov. Jerry Brown’s great achievement: turning California into the illegal immigrant crime state.
Like any banana republic, California will go bankrupt, well just like Argentina. Unfunded liabilities for the state continue to grow as witnessed by pensions for state workers. The state has obligation of $250 billion in unfunded pension liabilities, and $78 billion in unfunded health liabilities. It is a giant Ponzi scheme that will collapse, funded as the U.S. Ponzi scheme is funded by bonds.
But as Argentina has shown, the bonds of banana republics are not risk free. But the fate of this banana republic was foretold in Los Angeles, where Gloria Molina and LA Unified School District erected the $500 million Belmont High and then had to raze the complex because of environmental concerns. The most expensive high school in U.S. history.
One day the state will go into receivership and be forced into austerity. It is another socialist experiment that will fail, propped up by historically lax monetary policies of the Federal Reserve. As Ellen Brown observes, you cannot taper a Ponzi scheme, but as the Fed’s Stanley Fischer has been intimating those policies are getting long in the tooth. The real estate Ponzi bubble in the state will come to an inglorious end, and when it does the state’s bond Ponzi scheme is going to unravel.
Per chance is the state budget woes connected to the corruption and crime in Sacramento? And what better role models for corruption than the husbands of Nancy Pelosi and Dianne Feinstein. They cut their teeth on corruption in the Golden State and then take it to Washington D.C. It is paradise for the parasites.