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Monday, October 11, 2010

California Stews Up Another Phony Budget with Expected Alms from Washington

California Stews Up Another Phony Budget with Expected Alms from Washington

Revised 10.09.10

In a series of previous blogs[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51], I attempted to point out that leftist governments, of which California leads in this malevolent metric, bordering on social psychosis and contempt for capitalism, are deteriorating in power as they put all their emphasis on taxes, punishment of business and the metastatic increase in government by any means accompanied by the projected social policy of state-sanctioned drug abuse. To this we must also add pandering, the adoration of sodomy, crass begging and money grubbing from Washington and places similar who are also crashing in debt and headed for depression.

In every case where I commented on California’s Follies in my blogs since 2007, the only acceptable left-liberal plan in Sacramento has been to raise taxes, import and comfort illegal aliens for their necessary multiple votes and increase spending on any and all ‘educational’ or social programs. There are no exceptions in this leftist-dominated attitude toward society.

Surveying the civilized world, even including places like California if we must, we note that many nations are sinking into a murky swamp of unrecoverable debt and now many of those entities are theoretically obliged to cut spending and take severe austerity measures to cut their deficits if they are to avoid credit damage. This austerity notion, collectively denigrated as a group by Paul Krugman as ‘austerians’[52], festooned with revulsion and contempt from the leftist, is resisted with any and all forms of strategy, battle and threats. Such a process as curtailing excessive spending, following a budget and the abandonment of unfettered public tax mongering are several of the very last items on a long list of progressive legislative proposals in California. This hopeless government behaves correspondingly to nearly all of those other failed states that emulate this financial wreckage such as New York and Illinois and several places in Europe. They spend; they do not cut; they beg unashamedly. These parasites would sell their souls if they gave any credence to this religions concept.

The progressive leaders of many states in the US and Europe in general apparently believe there is some pot of gold hidden by the ‘rich’ and that monotonically increasing taxes will eventually recover enough of that undeserved loot to cover current expenses and pay off a bit of the massive debt they have brought upon us. Their quest for other people’s monies to solve their financial woes is in high gear, flush with beads of sweat, soggy socks and headed for a massive collision with economic reality and financial stability. What is at stake here is the accumulated wealth of the entire planet if the far left can implement their taxes and Cap and Trade Follies. They can spend much more than we have and they are doing so now. Remember Bastille Day when the price of a loaf of bread exceeded the pay of the average worker?[53] This is happening on a broader scale now in both the federal union and several of its wanton states. We are going broke.

How to best read my blogs:

[I offer extensive quotes in this blog so that the reader can view the exact language and can be confident that nothing was taken out of context or that nobody was misquoted. The easiest way to take in the salient points is to read the emphatic points in the quotes and then peruse my comments. Comments on my comments are always welcome: ryckki@gmail.com.]

For an update on the financial bordello called Sacramento, we read this stuff:

Schwarzenegger and top lawmakers last week notched a budget deal as California entered the fourth month of its fiscal year, which began July 1, without a spending plan.

They compromised on spending cuts and raising revenue and signed off on rosy assumptions about tax collections and financial aid from Washington.

Tax hikes were excluded in the $87.5 billion budget plan at the insistence of Schwarzenegger and Republican lawmakers.

The plan's centerpiece is a spending reduction of $7.5 billion, and Schwarzenegger used the line item veto to cut about $960 million more in spending, chiefly from social services, to bolster a reserve fund to $1.3 billion.”-- California budget approved 100 days late By Jim Christie Sacramento, California Sat Oct 9, 2010

This sketchy hokum tells us nothing about the state of the budget; nothing about the significant ‘if’ it can be followed to avoid spending overruns and has fundamental cracks in the structure sufficient to drive a truckload of marijuana between the lines. There is nothing here!

Some details ooze out after a time:

The plan includes more than $1 billion in revenue from postponing a corporate tax break and roughly $3 billion is added from transfers from state funds”-- California budget approved 100 days late

The term transfers, particularly as how it is used in this context and not addressing the old San Francisco cable car ticket mechanism, is onerous and intimidating. This may indicate that more cities, like Los Angeles, have been tapped to loosen up on their cash surpluses, if any exist, and to gently hand over that cash to the liberals in Sacramento.

The plan also would put before voters a measure in 2012 to bolster a rainy-day fund and roll back public pension increases for new state employees approved in 1999.”-- California budget approved 100 days late

That is nonsense. With their current sour junk-level bond credit rating and huge debt load, the idea of putting aside some cash that could be used to address emergencies is foolish.

For the fluffy parts of this comedy we include this twaddle:

The budget includes the expectation of $1.4 billion in higher than previously forecast state revenue. But it is unclear revenue will rise, given California's dire economy and double-digit unemployment rate.

Additionally, the plan expects $5.4 billion from Washington, which so far has promised only $1.4 billion.”-- California budget approved 100 days late

Well, there you have it in political jargon that seems to ‘solve’ some problem, but will only result in more deficits for 2012.

It appears that there is about $4.5 billion in blue sky monies here that will have to appear as debt when these idiots reconvene in July to begin the next round of incoherent jabbering, deal making and things much worse.

Brown and Whitman will have a clearer financial view of what awaits California later on Friday, when State Controller John Chiang is expected to post his monthly revenue report.”-- California budget approved 100 days late

Sure, let this rest and dump it on the newcomers who will face even more dire financial problems in the very near future.

Clearly, with people like this in power there is no hope of recovery. Everyone must pick up their essentials are run from this place. They are going down in first bankruptcy and then probably in some kind of revolution.

rycK [a5th generation Californian in exile]

Comments to: ryckki@gmail.com



[1] California Becomes the National Leper like Greece is for the EU II. They Need All our Money and More.

http://ryckki.blogspot.com/2010/07/california-becomes-national-leper-like.html Written 2.10.2010 revised 7.14.2010

[2] Financial Armageddon in California. The State is Going Bankrupt and Civil Unrest Boils Over. http://ryckki.blogspot.com/2010/08/financial-armageddon-in-california.html

[3] California Becomes the National Leper like Greece is for the EU II. They Need All our Money and More.

http://ryckki.blogspot.com/2010/07/california-becomes-national-leper-like.html

[6] Inefficiency in California, Greece and Other Places and the Socialist Disease of Parasitism: They will NOT stop spending and WILL default.

http://rycksrationalizations.blogtownhall.com/2010/03/05/inefficiency_in_california,_greece_and_other_places_and_the_socialist_disease_of_parasitism_they_will_not_stop_spending_and_will_default.thtml

[13] As the Head-Banger Gains Experience and Knowledge from the Pain California Seeks to Bury itself in Dope and Debt.

http://rycksrationalizations.blogtownhall.com/2009/10/23/as_the_head-banger_gains_experience_and_knowledge_from_the_pain_california_seeks_to_bury_itself_in_dope_and_debt.thtml

[47] An Open Letter about the Final Solution to Global Warming and How to Save California from Burning. Sunday, February 10, 2008 11:46 AM

http://rycksrationalizations.townhall.com/g/c779aad4-14b7-4ba9-a414-43e5c8cde7c8

[50] Conan Deals with the Barbarians: California on the Financial Rocks, as Predicted.

Posted by rycK on Sunday, December 16, 2007 1:57:16 PM

http://rycksrationalizations.blogtownhall.com/2007/12/16/conan_deals_with_the_barbarians_california_on_the_financial_rocks,_as_predicted.thtml

[52] Another Leftist Bondage Scheme for the Bond Gods. Krugman Speaks of the Evils of the Austerians

http://ryckki.blogspot.com/2010/08/another-leftist-bondage-scheme-for-bond.html

[53] Citizens: A Chronicle of the French Revolution (ISBN: 9780679726104) Alfred a Knopf Inc, 1989..

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