The Sacramento socialist agenda of Kevin de Leon and Anthony Rendon will go up in smoke, because like all socialism it relies upon other people’s money, e.g., the $68.9 billion healthcare medicaid funds to balance Commie California’s budget. Not coincidentally, these two stooges along with Governor Brown appear to be egged-on by the Jewish American community that makes up Hollywood. They, and no one else, should receive the credit when the SHTF in California.
This large sum of $68.9 billion comes courtesy of an insolvent Federal Government that in truth has funded and unfunded liabilities of $220 trillion, according to budget expert Laurence Kotlikoff at Boston University. As noted below, the Feds themselves will run out of money in October, and there will be a donnybrook of a fight to raise the debt limit. That is, the model of borrowing money to service previous borrowing.
Basically for states like Illinois, our Venezuela, and California, our coming Puerto Rico, their respective past prosperity was basically borrowed from future generations through lax monetary policies. And if you hadn’t noticed, the Fed is right now in the process of tightening the screws to easy money.
Virtually every time the Fed has begun raising rates a recession was not far off. Frankly, I do not see how one insolvent entity, the Federal Government, is going to be able to keep another bankrupt entity, the state of California with its pension and healthcare liabilities afloat for much longer.
The only adult in Sacramento was luckily for Californians, Governor Jerry Brown, but the guy will soon be checking out. So just off hand because the morons in Sacramento think socialism works, which flies in the face of all empirical evidence, California I will forecast will go bankrupt just like Illinois, and should be broken up. This is what I refer to as moronic, when contrary to evidence that socialism does not succeed you do the opposite expecting it to do otherwise. And all evidence points to the bankruptcy of socialism so why precisely do California’s so-called leaders pursue it? My conclusion: they must be morons.
Like I’ve maintained, Donald J. Trump cannot fix the fiscal mess created by Barack Obama and his policy of going into unsustainable debt. And this debt will of course ripple all across the country and irresponsible states like Commie California, whose tax base relies upon capital gains in the casino we call Wall Street. My own opinion is that Catholics generally lack the fiscal discipline to avoid insolvency, promoting social programs that in turn undermines the economy.
Just take for example the sophomoric mistake of intervening into labor markets (mandating minimum wages), which Seattle now believes resulted in more poverty and not less in their municipality. A University of Washington study found that new wages boosted worker pay by 3 percent, but also resulted in a 9-percent reduction in hours and a $125 cut to the monthly paychecks. To say nothing about the 5,000 jobs the city also lost, as new job creation slowed. Socialists just never learn. Capitalism is the only system ever to raise the general prosperity of the populace. And it is the market and not the so-called experts that accomplishes that feat.