Tag Archives: California

Businesses Are Not Leaving Cali? – More Liberal Spin

 One of the most frustrating things for me as a citizen journalist is the confrontation, (daily), of eggheads and so-called experts that defy common sense. Nothing in the intelligentsia is off-bounds, no motive, no premise, no absurdity. Do you know what I mean?

Today I wandered over to Yahoo Finance to check on the market and investments, wow I thought, stocks are showing a little resilience here, hmm…..scanning news, headlines, companies, I see a headline –

Budget Crisis “Embarrassing,” But Businesses Aren’t Fleeing California, Economist Says

Really. He really thinks this, this Mr Stephen Levy of the Center for the Continuing Study of the California Economy. I scan the website, finding ambiguous reports and studies, etc. I do find that some liberal groups have given financial support to the group CCSCE. Follow the money. Any and every massive fallacious absurdity and misconception has a long money trail associated.

Knowing the opposite to be true, that businesses and individuals are fleeing the once-Golden State, I pull up mountains of empirical data. I am not an egghead, I don’t have an axe to grind, a Public Policy propaganda arm to push. Exhibit a. -residents are leaving in droves here.

American Thinker here. Several states are pushing programs to entice CA emigrants. Colorado, Arizona, Nevada, Oregon and Utah. California or Bust, Californian and Busted. Pointy-headed useful-idiot egghead busted.

California state government largess creating a meltdown of unforeseen proportions. State issuing IOUs to workers, people on programs, contractors, state workers, folks doing business with the state, etc in lieu of cash here, here, here. Sounds great for business! Empirical data again, egghead busted again.

Hmm, it seems that some of the big banks are leery of accepting California IOU’s here. Common sense comes into play again, bankers have no faith in the state. Why then would businesses and individuals? I don’t need a pointy-headed academic to tell me otherwise. Common sense, living within one’s means, Main Street to State Street, cause and effect cannot be escaped. Egghead nay.

State serf-rulers, pols and media blame our woes on low taxes here. Yes, you read that right, low taxes. A simple defiance of reality even in our age of stupidity. They deserve this place. Read this here from a State Assemblywoman. She deserves this state. She deserves Cuba, Castro, Chavez, Venezuela.

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State coffers are still bleeding after rearranging the chairs on the decks of the Titanic here, tax revenue down some 40% from a year or so ago. A California Condor has been spotted, shrieking, it’s vulturous squawk heard miles away…..we need to cut waste, squawk! squawk!…..Too little, too late Governor California Condor. There is but a corpse of the state for you and Sacramento vultures to nibble on. Where does the state get revenue? Yet another egghead is heard saying ‘everything is just fine and dandy’! Where can I find this mystical, mythical business that we can squeeze tax dollars from?

…….*crickets chirping in abandoned warehouses*…….

Businesses, production and producers provide tax revenue. Yet they aren’t leaving the state? Eggheads pecking at the corpse of a once prosperous state.

 How does a state that is so desperately in the hole find new ways to raise taxes, find revenue as the pols say in Taxamento? We should tap into the bounty of nature, tax a certain oddly shaped, uniquely-smelling plant, (when smoked). Yes, the hair of the dog, ganja, pot, weed, dope. And what a case of dope indeed, pols, bureaucrats, media-types are calling for the legalization of marijuana in the state to cure our fiscal woes, here and here.

America I am your clarion call of emergency and warning. I am calling on the danger that you are amidst. I am pleading for you to listen. I am asking you to rise up against this Obamanation and the equivalents on all Federal levels.

They are pushing the disaster that is California, on you America, on the road to serfdom.

Serfdom

Left Coast Rebel (http://www.leftcoastrebel.com/2009/07/businesses-arent-fleeing-ca.html) saying what I have been ranting about for weeks now. California is headed down the path of no return and yet still people are saying everything is ok. Research what happened to California and you will see that is the exact path the United States as a whole is being pushed down by the obamanation in office.

UPDATE: Here is a great comment left on the orignial article on Left Coast Rebel…

Nick said…

The sad part about California, for me (as a current resident), is that I’m virtually certain that I will leave California in the next few years in search of a place less destructive to my way of life. By that, I mean a place which doesn’t actively discourage business and productions, doesn’t tax its workers obscenely, and doesn’t have a budgetary disaster caused by ridiculous of-of-control spending and Obamanation-style liberal politics. The sad part is not that I’m leaving (statistically I will be replaced by 2+ other people, likely here illegally, so the state won’t miss me), but rather that I have no hope in affecting any change whatsoever in the state’s situation, and thus that has no consideration.

Cap n Trade Bill – Section 304

I bet you thought that if you bought a house, you actually own it and can, with reasonable exceptions, do with it what you want. You probably think that if you want to live in a log cabin, with wood stoves that belch smoke into the air for heat, and an old washer and dryer that don’t have those little EnergyStar stickers on them you can because it’s your life and your property. You paid for it with money you earned with the sweat of your brow and what the heck is America anyhow if a body can’t live in the home they want furnished with the appliances they want?

Ah, silly you. You didn’t reckon on the Democratic Party’s desire to control every miniscule aspect of your life.

Let me introduce you to a little section of the Waxman-Markey cap-and-trade bill called the “Building Energy Performance Labeling Program”. It’s section 304 of the bill and it says, basically, that your house belongs to the state. See, the Federal Government really wants a country full of energy-efficient homes, so much so that the bill mandates that new homes be 30 percent more energy efficient than the current building code on the very day the law is signed. That efficiency goes up to 50 percent by 2014 and only goes higher from there, all the way to 2030. That, by the way, is not merely a target but a requirement of the law. New homes must reach those efficiency targets no matter what.

But what does that have to do with current homeowners like you? Well, I’m glad you asked. You’re certainly not off the hook, no way, no how. Here’s what the Democrats have planned for you. The program requires that states label their buildings so that we can all know how efficient every building (that includes residential and non-residential buildings) is and it requires that the information be made public. To that end, the bill suggests a number of circumstances under which the states could inspect a building, including:

(A) preparation, and public disclosure of the label through filing with tax and title records at the time of–

(i) a building audit conducted with support from Federal or State funds;

(ii) a building energy-efficiency retrofit conducted in response to such an audit;

(iii) a final inspection of major renovations or additions made to a building in accordance with a building permit issued by a local government entity;

(iv) a sale that is recorded for title and tax purposes consistent with paragraph (8);

(v) a new lien recorded on the property for more than a set percentage of the assessed value of the property, if that lien reflects public financial assistance for energy-related improvements to that building; or

(vi) a change in ownership or operation of the building for purposes of utility billing; or

(B) other appropriate means.

Pay close attention to (iii), (iv), and (vi) because those hit you right where you live. What that’s saying is the state will be empowered to inspect your home if you want to 1) renovate your house in any way that requires a building permit, 2) sell your house, or 3) change the name of the person responsible for any utility bill.

By now, if you haven’t swallowed your tongue and are in need of medical attention, you’re probably wondering if there’s a penalty for not being in compliance with the new efficiency ratings. The answer is no, and yes. Here’s where the bill gets really sneaky. So far as I can tell, there is no direct penalty if your house does not meet the bill’s target. However, it does require that the number of buildings inspected by the state meet certain percentage targets and if they do not, the state loses out on a significant portion of the money it could get from Washington. In other words, the bill demands certain things from the states, but ties funding for those demands to compliance with the demands.

Did I say the bill gets sneaky? I was wrong. The bill strong-arms the states like a couple mob heavies leaning on a witness in a Rico trial. In turn, the states are going to put the screws to you, so it gets the billions of dollars Washington is dangling in front of them. So while the Federal government won’t directly punish you, it will provide the states with lots and lots of rectangular, green reasons to do so.

And it gets worse. The Federal government has graciously offered to help homeowners with the retrofits the states will force them to do through a program called the Retrofit for Energy and Environmental Purposes (REEP). REEP sets aside a pool of money in each state for property owners who have to turn their polar bear-killing buildings into lean, mean, green machines. But, and I’m sure you’ve guessed this already, there’s a catch. Before I get to that, here’s the magic formula (and don’t read ahead and spoil the surprise!):

(i) AWARDS- For residential buildings–

(I) support for a free or low-cost detailed building energy audit that prescribes, as part of a energy-reducing measures sufficient to achieve at least a 20 percent reduction in energy use, by providing an incentive equal to the documented cost of such audit, but not more than $200, in addition to any earned by achieving a 20 percent or greater efficiency improvement;

(II) a total of $1,000 for a combination of measures, prescribed in an audit conducted under subclause (I), designed to reduce energy consumption by more than 10 percent, and $2,000 for a combination of measures prescribed in such an audit, designed to reduce energy consumption by more than 20 percent;

(III) $3,000 for demonstrated savings of 20 percent, pursuant to a performance-based building retrofit program; and

(IV) $1,000 for each additional 5 percentage points of energy savings achieved beyond savings for which funding is provided under subclause (II) or (III).

If you want to hit that 50 percent savings mark that all new homes have to hit, then you can get as much as $12,200, including inspection, as you scoop all those awards. That’s a pretty good chunk of change that should cover most, if not all of the costs of a retrofit on any moderately-sized older house, right? Easy, peasy, lemon squeezy.

Except for that catch and boy is it a doozy.

(ii) MAXIMUM PERCENTAGE- Awards under clause (i) shall not exceed 50 percent of retrofit costs for each building. For buildings with multiple residential units, awards under clause (i) shall not be greater than 50 percent of the total cost of retrofitting the building, prorated among individual residential units on the basis of relative costs of the retrofit.

Did you get that? You’ll be on the hook for half of the cost of the retrofit, no matter what. To get the full effect of that part of the bill, I suggest you visit this web page and click the big yellow button right after you finish reading it.

I think Mark Steyn sums it up rather nicely:

I confess I’m finding it harder and harder to see why you fellows bothered holding a revolution. Under this bill, it will be illegal for me to sell my property to a willing buyer without first bringing it into line with some twerp bureaucrat’s arbitrary and ever shifting “environmental” regulations originally designed for California, and which have helped turn the Golden State into the foldin’ state, but which are nevertheless now to be applied from Maine to Alaska. And no matter what you spend a couple of years down the road the standards will be “revised” and you’ll be out of compliance all over again.

Jimmy Bise (AIP)- http://bit.ly/JGWFI

Obamanomics – California

“The Obama Administration is the Most Fiscally Irresponsible in the History of the U.S.”

The above is a quote from Kevin Hassett’s article in Bloomberg. http://bit.ly/14X4sE

“The federal picture is so bleak because the Obama administration is the most fiscally irresponsible in the history of the U.S. I would imagine that he would be the intergalactic champion as well, if we could gather the data on deficits on other worlds. Obama has taken George W. Bush’s inattention to deficits and elevated it to an art form.

The Obama administration has no shame, and is willing to abandon reason altogether to achieve its short-term political goals. Ronald Reagan ran up big deficits in part because he believed that his tax cuts would produce economic growth, and ultimately pay for themselves. He may well have been excessively optimistic about the merits of tax cuts, but at least he had a story.

Obama has no story. Nobody believes that his unprecedented expansion of the welfare state will lead to enough economic growth. Nobody believes that it will pay for itself. Everyone understands that higher spending today begets higher spending tomorrow. That means that his economic strategy simply doesn’t add up.”

The bloomberg report goes on to say,”It takes years and years to make a mess as terrible as the California debacle, but the recipe is simple. All that you need is two political parties that are always willing to offer easy government solutions for every need of the voters, but never willing to make the tough decisions necessary to finance the government largess that results.”

obamanomics

I said it earlier in one of my posts below, the situation in California is a glimpse….a small microcosm of what will happen to the US (the bill will be due eventually) if we continue down the path of California. This is the end result of and expanding runaway big government, massive deficit spending and entitlement programs for everyone. There is only os much you can tax the producers (the productive members of society) to provide for the  ‘consumers” (people who take out of the system without putitng in) nanny-state style. Already in America, 44% of the population does not even pay income taxes and what percentage of the 56% take out more from the system then they put in? Something will give eventually.

As Confederate Yankee said,”Nothing President Obama has done adds up. Not his economic strategy, nor his domestic policy, nor his foreign policy. Just an eighth of the way through his presidency Barack Obama appears to be the most dangerously incompetent man to have ever held the office, doing more long-term damage to this nation than any foreign invader could have ever dreamed. That he has another 3 1/2 years in office ahead of him, and an equally radical coalition of far left activists in Congress until at least 2010, is disheartening, to say the least. “

Big Banks Turn Down California IOUs

This topic is a first for the Darkside dear readers…..the giant blackhole that is California’s budget deficit.

Several major US banks have put out the memo that they will not be accepting California IOUS by Friday. California has a $24 billion budget deficit and will run out capital in the next month  if the budget gpa remains unresolved or their IOUs are increasinly turned down by banks and financial institutions.

From the Wall Streat Journal…. http://online.wsj.com/article/SB124692354575702881.html

A group of the biggest U.S. banks said they would stop accepting California’s IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap. …

The group of banks included Bank of America Corp., Citigroup Inc., Wells Fargo & Co. and J.P. Morgan Chase & Co., among others. The banks had previously committed to accepting state IOUs as payment. California plans to issue more than $3 billion of IOUs in July.

Ms. Mills of the CBA said some banks were concerned that there aren’t processes in place to accept IOUs, and also worried about fraud issues.”

iou

The banks have a very legitimate reason to fear fraud. Many in the financial/bankikng sector are questioning the legality of the California IOUs. They are accusing  California of creating currency, which is unconstitutional.  The creation of currency is the sole province of the federal government. The IOUs awould  also be a form of bailout, as the acceptance of IOUs by the banks would essentially mean the same as giving Cali hard cash.

A bailout would only delay the day of reckoning. California’s budget woes are entirely of their own making, and a bailout would not solve the underlying political problems in California. They tax too much and they spend too much, and their political class hasn’t got the guts to actually solve either of those problems, let alone both. A bailout would put California right back in the same place next year, and the year after that.

NOTE: California got into this mess by exponential growth in big government, massive deficit and runaway entitlement/welfare spending. The current federal governemnt is growing big government, incurring massive deficits and is proposing massive redistribution of wealth along with increased entitlements. Sounds like a fucking fantastic idea…..following California’s foot steps.

The idiocy of allowing the federal government to follow in Cali's foot steps.

The idiocy of allowing the federal government to follow in California's footsteps.