Are there estimations of when this will happen? Its pretty much a forgone conclusion that it certianlly will. It would help to have a heads-up before the trainwreak occurs.
I guess it will occur about the same time Japan goes bankrupt. In other words, probably never. People have been making dire predictions forever about that and it never comes to pass.
California can print money indeed, IOU's, you KNOW that will happen but eventually those won't be worth anything, maybe THEN people will say "oh well, Socialism had to collapse eventually" but I wouldn't hold my breath on that one... I was telling an avid, rabid leftist that hated me for mentioning Fox News that socialism is in worldwide meltdown and he nearly hit me with his pool cue and was livid and telling me that it's capitalism that is melting down...
It is real simple collect property taxes give out I.O.U. for income and keep the dumb public locked in a one way system then turn around and ask the Fed for money. Keep on rebuilding the fire and quake zones until the big one. The one big industry in CA is Hollywood which has been putting out sub par product for decades. I keep checking the release dates for up and coming films and the film rehash, remix, reboot, etc. has been shortend to less than 20 years. Take the time to see why "Red Dawn 2010" was not released on time. Akuma
Just as the Fed can create all the funny money it needs to buy U.S. treasuries, ensuring that the U.S. doesn't go bankrupt (but does see its currency debased) the Japanese central bank can keep creating yen. So Japan won't go bankrupt but could see its currency crash. But California can not print its own money.
Japan has the ability to print, Cali does not but as one poster wrote, they are issuing IOU's to avoid default. Illinois is doing the same thing. If they can't pay your tax refund they are issuing a credit instead. They will pay the credit when they have the funds, which could be many years. You can't even use the credit to offset future tax liabilities. Cali ain't gonna default any time soon. All is good with Arnie.
The results are happening now. Companies that can, are pulling out of Cali. Huge drain on High Net Worth Individuals.....other than the Actors in LA. Massive exodus. Massive amounts of Cali money have flowed out and is still flowing. Austin TX is becoming home to Key VC capital that once flowed to Silicone Valley. Even with Texas's 26 billion defect, more Cali money has faith in TEXAS recovery than Cali. In the next 5 to 10 years, most of Cali will be the poor people, the free loaders, Illegals and Bigger Public Traded companies that receive tax breaks and those who are in bed with the Socialist. There will be some Rich living there, mainly the fools who believe in SORO'S like philospohy and want to give away their money to a free loading population. However, Cali going bankrupt and defaulting over all, not gona happen.
Let's just acknowledge we have a blend of capitalism and socialism. The arguing about 'which one of them is right' is fruitless. The only productive debate is how to strike the right balance, and frankly, that's something that is going to have to be adjusted periodically and is always going to be a struggle.