California Has Gone Broke, Duh
California Governor Arnold Schwarzenegger in a press conference Tuesday said that, “California’s day of reckoning is here”, meaning in other words, they’re broke. As of Tuesday, the state has 14 more days before they completely run out of money having to shut down many agencies and make drastic cuts to education, prisons, health care and other money sucking government departments.
Well hello, California state lawmakers have know about the roughly $24 billion budget deficit for several years now and they’ve done absolutely nothing about it. Did they not know that overspending money on free health care for illegal aliens, education, bloated bureaucratic agencies, poor investments, welfare, and a multitude of other programs that were never intended to be funded by the state, was eventually going to lead to this?
If you are balancing your check book and paying credit card bills and having to take money out of savings (if you have any) every month, you darn sure know that there’s going to be a problem as soon as your savings run out. And simple math will tell you just how long you’re going to be able to rob your savings account before there’s going to be a serious problem. You can either do something about it, in other words stop spending money you don’t have, or you can continue on your path and go broke in 3 years, 1 year, 1 month or whatever your simple accounting tells you.
So obviously the big question is, why the heck didn’t California law makers, that are supposed to be so infinitely wise that we can’t function without their leadership, do something about a problem that was so huge they couldn’t ignore it. Stuff like this should make your brain melt. Everyone responsible for running the state of California should have known this was coming, yet they did nothing.
The situation could get even more insane if the US Government now decides to bail out the state of California. In effect this would be the rest of the taxpayers of the other individual states bailing out another state for being completely irresponsible with their budget. People will and should revolt if this happens. How dare my tax money be spent for such lack of foresight and fiscal lunacy.
Even if the US taxpayer doesn’t bail out California we still have a huge financial problem with the US Government because they are in a worse position fiscally than California is. The only difference between California running out of money and the United States running out of money is that the US Treasury can just print more money, California can’t.
But in reality, printing money just creates more problems. America’s day of reckoning is just around the corner.
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