Tag Archives: IOUs

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.

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.”

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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.