They really are sugar coating this financial crisis. Looks like they dont want to call it what it is...a "default" But when you have to issue IOUs because you cant pay, thats exactly what it is...a Default. http://news.yahoo.com/s/nm/20090625/ts_nm/us_california_debt Imagine if homeowners tried to pull this with the banks or credit cards. "Oh yeah...i cant pay this month...im just going to give you an IOU." Reminds me of that movie Dumb & Dumber where the guy opens the briefcase that is supposed to have money in it and its all a bunch of IOUs and Jim Carey says "Hey, those are as good as cash" Then pulls out the IOU for 300k for the lamborghini and says "You might want to hold onto that one"
Here comes Obama's second state bailout (ahem, stimulus).... Let people be occupied with top priority national security issues like underage drinking enforcement, food stamps and oversaturated state pensions. Leave the state to go bankrupt for another day, no one will notice.
If lawmakers continue to reject budget cuts, the state should "pay" it's obligations with IOUs.... state legislators will soon get the message. One of the MAJOR factors in The Destruction Of America is that GOVERNMENT IS TOO BIG, TOO MUCH OF A NON-PRODUCTIVE, PARASITIC BURDEN ON THE PRIVATE SECTOR. Trim back government or us ALL die.
Yes, yes. The public County Library where I live is housed in the same building with several "social services" agencies. The building has several doors. Library patrons used to be able to enter by the social services area. As you walked through, it was amazing to look in all the varous offices. Staff people doing absolutely nothing, looking out the window. Last week, I entered the building at the social services door. A guard was seated there. He immediately stopped me, said I could not enter the library from that entrance any more. I had to walk outside, and around the building to the library entrance. So, I have to think it is strange that normal taxpayers cannot use the door that tax-deadbeats use. How many social services workers has California laid off. I assume the answer is zero. I also assume they are in hiring mode.
Maybe it's just me, but the entire US seems to be going down the exact same road California did. Rather than learn from the California model, we're just trying to mimic it and all it's issues.
That's because the LAST thing government ever will do is "cut back". It would rather BANKRUPT EVERYBODY. What ever happened to "... I believe the proper role of government is to provide for the people only those critical functions that cannot be performed by individuals or private organizations and that the best government is that which governs least..." Both California and the Feds are doing the "Thelma and Louise" in the opposite direction. Where's a Susan Powter when you really need one?
I'm with you, but nothing is ever going to change while I can still order a big mac, and go home to put on American Idol.
I don't believe states can legally go bankrupt because they have the ability to collect taxes. This is the same as countries like the Weimar republic, Zimbabwe, and (perhaps soon) America can't file for bankruptcy because they can tax and print money. If the legislators can't/won't do what is necessary to balance the budget because of politics, a special master might be appointed for California to raise taxes and cut spending until the budget is balanced.