California is broke; “the US is busted”

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dollar-bill

That”s right, the state of California – which has one of the biggest economies in the world – has no money left to pay income tax refunds; so now it is planning to refund taxpayers with IOUs.

It is also asking state employees to go on two days unpaid leave every month.

California is now staring at a US$42 billion budget deficit. How did this happen? Oxbury Publishing provides an analysis here.

You gonna be back, Arnie? I think you have just terminated California (as a going concern). Oops.

Who is going to bail out California?

Obama has already announced a US$825 billion bailout plan. That’s in addition to Bush’s $700 billion bailout package. The big question now is where is all that money going to come from?

Fresh from his inauguration, Obama still thinks he has enough money to continue the US’ foreign military adventures.

But Paul Craig Roberts, a former Assistant Secretary of the Treasury in the Reagan administration, looks at the larger picture and says the United States is busted.

Now, who is going to bail out the United States?

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disney

They need another World War.

Dr.Hamid Ibrahim

Dear Anil California is broke – Malaysia is completely broke but puts up a bold show but inside woe. I wonder as an Accountant you would set up a small think tank of your trusted friends to study/investigate the Reports/Statements by various Public and Major Private companies as to the truth of thier statements and Reports in the Daily Newspapers. Once we collect this information, it is easier to expose them. It is my view that the writers are being paid to write a lot of untruths (lies). Unfortunately, I am quite tied up with other projects – legal. I… Read more »

Drachen

Hi Vinnan,

All technology needs energy and maintainance. Without money you can do neither.

Poor Americans have already started committing suicide, taking entire families with them! It’s going to get worse.

Lochos Vestu

@vinnan: vinnan, do you really think Rahm Emanuel is going to change anything? He is a nobody, he’s not the modern-day King Solomon of the American Jews. Rather, Obama will have to go, hat in hand, begging to SOROS for money.

Ong Eu Soon

Change! I finally see change coming as promised by Obama. Real change! From super power to a bankrupt nation. Keep on fighting until all human race are eliminated from planet Earth! Until a new master emerge to take over the world.

vinnan

To Drachen,

Yes, the US do indeed intend to drastically reduce their bases around the world. However, they are not about to stop fighting wars. If you look at how they are taking out the Muslim militants hiding along the Afghanistan-Pakistan border using long range combat UAVs you will understand why they no longer need that many bases. The US is at the cutting edge of the technology which goes into these combat UAVs. It won’t be long the Yanks come up with UAVs which can go round the world and take out targets.

Drachen

It’s the end of the US Empire! US military bases blanketing the world will have to be closed one by one! Yankee soldiers will have stop killing people and go home! World peace is round the corner! Hurray! 🙂

ismail

Hi Anil…have u given up your fight on the “hiway robbery” that is the Penang Second Bridge? From Rm 3 billion in 2006 it has ballooned to 4.55 billion as it is now>>due to material price increase etc…However,construction materials hv spiralled down to 2006 levels and potentially even lower. And don’t forget…the 2 crown jewels viewing platform hv been reduced( thats at least Rm 100 m saved)…and Tan Sri Zaini also did mention in one of his briefings of design changes that hv saved 200m… And the contract is now virtually riskfree as govt is paying on work done,no financing… Read more »

Samuel Goh Kim Eng

SINKING SHIP STILL AROUND?

Let’s take a look at the sinking ship
The outcome of a major political flip
But even a ‘sampan’ has given the slip
Is it too late now to sound the blip?

(C) Samuel Goh Kim Eng – 300109
http://MotivationInMotion.blogspot.com
Fri. 30th Jan. 2009.

Taiko1983

Cali main tax revenue derives from state income tax which has been on a rollercoaster ride since the IT boom and bust and now the housing crash. During good times, the state government is afford to expand its size of service because the state government was able to collect a generous amount of income tax. On the flip side, the state government will have to live with the depressed level of tax revenue to sustain its pre-bust level. The problem that Cali is facing right now in 2009 is, although, the state government at Sac is cutting down many essential… Read more »

My2cen

The West is broke, while the East have been saving a lot for many years. They are looking to the East to spend on their exports. And Yys, Middle East too, whether it’s Israel or the Arab world.

2nd class malaysian

Don’t worry we got tons of US worshipping Malaysian willing to kow tow to them and save their butt!

Phua Kai Lit

Dear Anil and other progressive friends Sorry to go off-topic. Below is a modified version of Martin Luther King’s “I Have a Dream” speech. Dr Martin Luther King’s “I Have A Dream” Speech as Applied to Malaysia: It is obvious today that Malaysia has defaulted on this promissory note insofar as her ordinary citizens of all ethnic groups are concerned. Instead of honoring this sacred obligation, the powers that be in Malaysia have given the ordinary Malaysian, a bad cheque, a cheque which has come back marked “insufficient funds.” But we refuse to believe that the bank of justice is… Read more »

telur dua

Where is all that money coming from? Just print more.

At least those working in the US Mint do not have to worry about VSS. LOLLL.

vinnan

Firstly, California is bust because they have laws which forces the state government to keep property taxes at ridiculously low levels. No politician in California wants to commit political suicide by trying to amend these laws. As for the trillions the US govt would need the money will come from the tax havens in which all US corporations and many individual US citizens stash their ‘real’ money. At the last estimate about 250 billion USD are put into these tax havens every year. Since the tax havens have been around for decades the amount of money is staggering. The problem… Read more »

shankar

We have high-end printing presses. We will prevail. The larger question is “who is going to say Malaysia?”

Han2

Yeah, looks like Governor Arnold Schwarzeneggar has “terminated” California alright but not to worry, “I will be back!”….