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Economy
'California economic recovery unlikely'
2011-01-15
[Iran Press TV] A widening budget deficit of $25 billion for Caliphornia will make it unlikely for the state to experience economic recovery this year.

According to recent data released by Legislative Analyst's Office, Caliphornia shows the largest deficit in the US -- a figure more than the entire budget of most states.

Throughout the recession, Caliphornia has been among the worst performing states in America. The state's unemployment rate has consistently been higher than the rest of the nation and Caliphornia has now the lowest credit rating in the United States, a Press TV correspondent reported.

However,
The infamous However...
 Economists are hopeful that a change in leadership might help Caliphornia obtain its recovery.

Former Caliphornia's Governor Arnold Schwarzenegger left office this month, after failing to achieve any significant improvements in the economy.

Economists say Schwarzenegger did not have the political experience to push for the necessary measures.

"He tried to go the public route and tried to do a number of ballot initiatives and ended up losing, because he took up too many enemies at once. He had fantasy issues and he tried to use his popularity (as an actor)" says economist Kevin Klowden.

But residents told Press TV that they were doubtful that the new Governor Jerry Governor Moonbeam Brown
... those who ignore history are bound to repeat it ...
 will bring along much change.

Brown has released a new budget proposal this week, but economists say it is too soon to say whether they will have major impact on the state's massive deficit.

Caliphornia's economy is the eighth largest economy in the world, eclipsing even large countries such as Russia.
Posted by:Fred

#18  ... those who ignore history are bound to repeat it ...

No DOOMED to repeat it.
FIFY
Posted by: Redneck Jim   2011-01-15 19:46  

#17  "He tried to go the public route and tried to do a number of ballot initiatives and ended up losing..."

I disagree. IMHO this was California's last and best chance.

Bypassing the legislature is the ONLY to get anything worthwhile done in this state. The legislature is guaranteed to screw things up even worse than they are unless Brown miraculously finds a way to twist their arms. It's debatable that Moonbeam could find any leverage on these idiots and even more doubtful he would have the will to use it if he did.
Posted by: Abu Uluque   2011-01-15 18:45  

#16  Brown has released a new budget proposal this week, but economists say it is too soon to say whether they will have major impact on the state's massive deficit.

It's only slightly less than the budget proposed by his predecessor. Essentially untouched are California's byzantine government structure, state employee contracts and its regulatory morass.

The only advantages Brown has is a marginally better political position than Schwarzenegger and better-honed political skills. He hasn't alienated the press - yet. His most dangerous adversaries will be his fellow Democrats in the Assembly and their backers.
Posted by: Pappy   2011-01-15 15:29  

#15  (1) Change the pension program for new hire employees so that the problem at least ends now. End the vacation and overtime abuse in the last two years that spikes the numbers to ensure a heavier pension payout. (2) Legalize gambling in certain areas force the indian casino's and Vegas to pony up a lot of money to ensure it doesn't happen. (3) Allow offshore drilling. (4) Accept government money to build a nuclear storage facility in Death Valley or some other inhospitable place since we need nuke power and Nevada has gone wobbley.

Might not solve the problem entirely but it would be a few steps in the right direction.
Posted by: rjschwarz   2011-01-15 14:50  

#14  If the Republicans in DC had two brain cells left to rub together the House would immediately pass a limited bankruptcy for states allowing modification or repudiation of only public employee pay, benefits, retirement & retirement health care.

Most states could muddle along with some cuts to services if they could unload those future obligations. Conversely if states are prohibited from unloading those future obligations no amount of other cuts or tax increases can save them.
Posted by: AzCat   2011-01-15 14:26  

#13  From Wikpedia:
The State of Franklin, known also as the Free Republic of Franklin or the State of Frankland (the latter being the name submitted to the Continental Congress when it considered the territory's application for statehood[1]), was an autonomous United States territory created in 1784 from part of the territory west of the Appalachian Mountains that had been offered, by North Carolina, as a cession to the federal government (to help pay off debts related to the American Revolutionary War). Its capital was Jonesborough. Later, the area legally became, once again, part of North Carolina. Franklin encompassed what ultimately comprised a large share of the Tennessee Eastern Division of the Southwest Territory. Franklin was never admitted into the United States —falling two votes short for admission. The extra-legal state existed for only about four and a half years, ostensibly as a republic, before largely being abandoned. After the summer of 1785, the government of Franklin (now based in Greeneville), ruled in a "parallel government" role, running along side the official North Carolina bureaucracy. The creation of Franklin is novel, in that it resulted from both a cession (an offering from North Carolina to Congress) and a secession (seceding from North Carolina, when its offer was not acted upon, and the original cession was rescinded).

From other sources:
The currency was corn liquor. The state went bankrupt just before the constitution.

In late March 1788, the Cherokee, Chickamauga and Chickasaw nations collectively began to attack white American settlements in Franklin with abandon. Becoming desperate over the Franklin government's inability to function due to economic problems, Sevier sought a loan from the Spanish government, and along with James White attempted to place Franklin under Spanish rule. The North Carolina government was absolutely opposed to any foreign nation gaining a foothold in Franklin and ordered its officials to arrest Sevier, which happened in Aug, 1788. Sevier's supporters, however, quickly freed him from the local jail. In February of 1789,[7] Sevier and the last holdouts of "Lesser Franklin" (what they called the area they had retreated to, which was south of the French Broad River) swore oaths of allegiance to North Carolina after turning themselves in.[8] With the collapse of the last vestige of Franklin, North Carolina was required to send their militia to aid in driving out the Native American attackers. The only punishment given Sevier was to swear the oath.
Posted by: Water Modem   2011-01-15 12:23  

#12  .. those who ignore history are bound to repeat it ...

Indeed it is likely they are having a difficult time in Practical Math as well.


Also... LOL Stoned Pony Gurl in picture gawd help us all. Just more evidence that those who fuck up once are likely to fuck up even better in the future, with gravy.
Posted by: Zombie Hillary Lover   2011-01-15 10:46  

#11  Could there be a coup against a state gov't? If the unions and bureaucracy are out of control (as they are) and they control the electoral process (as they do) what is the only remedy left?
Posted by: Alan Cramer   2011-01-15 10:34  

#10  So long as public unions have a stranglehold on the government and they elect bone-headed progressives to run the state for their benefit, and they regulate industry out of existence they will flounder economically.
Posted by: JohnQC   2011-01-15 10:32  

#9  Then, if Caliphornia can't pay it's debts and the Feds have to assume them, it should revert to territorial status and be reconstituted as five separate states, Inland Empire (including SD, I just like the name) , LA LA Land, Central Valley and Sierra, Bay Area, and Ecotopia.
Posted by: Nimble Spemble   2011-01-15 10:03  

#8  There can not be any bankruptcy receivership for a state. The Constitution prohibits anything but a 'republican' form of government for a state. Only a territory can could be placed in a form of receivership.
Posted by: Procopius2k   2011-01-15 08:43  

#7  Nope. Doesn't work that way. He tried.
Posted by: gorb   2011-01-15 04:47  

#6  Coulda stopped the whole thing in his tracks by simply calling the banks who issued the credit cards and canceling them, in other words, cutting spending drastically.
Posted by: Anguper Hupomosing9418   2011-01-15 03:37  

#5  "Mr. Christie made a rookie mistake,"

I disagree. I know a guy whose wife took out credit cards and playing the shell game with the payments until she couldn't continue the facade.

He paid them off.

She did it again.

He paid them off.

After several more repeats, he finally divorced her.

Coulda stopped the whole thing in his tracks if he had just killed his credit rating by not paying them.
Posted by: gorb   2011-01-15 03:03  

#4  The whole US is in deep do-do, but California leads the way.
Meanwhile, back in NJ: "New Jersey Gov. Chris Christie said Tuesday that health care costs "will bankrupt" the state; minutes later, the state Economic Development Authority slashed a bond offering by about half...“Mr. Christie made a rookie mistake,” Mr. Pietronico CEO of Miller Tabak Asset Management said. “The market is very sensitive to the word ‘bankrupt.'”" - Bloomberg. In times like this, telling the truth is a mistake. Obama knows this well.
Posted by: Anguper Hupomosing9418   2011-01-15 02:50  

#3  Brown is the one who allowed political activity by government employee unions. So far his cuts have excluded the gold-plated pensions. He also created CARB which sucks millions of state money. It is sort of a state EPA that makes it own regulations and all appeals are heard by CARB.

California is in deep do-do
Posted by: crosspatch   2011-01-15 02:12  

#2  Until the public unions are demolished and the pensions cur back to less than half of what they are now, CA will bleed to death. I doubt the guy that opened the door for the unions will the the one to shut it on them. CA is headed for collapse.
Posted by: OldSpook   2011-01-15 00:49  

#1  A widening budget deficit of $25 billion for Caliphornia will make it unlikely for the state to experience economic recovery this year.

And maybe even next year too!
Posted by: gorb   2011-01-15 00:36  

00:00