"California's situation is improving! Things are getting worse at a slower rate!"
Posted on 12/11/2023 9:20:52 AM PST by bitt
Financial expert Chriss Street says that California is in an existential financial crisis. The state is losing billions by the month, and prospects for the future are even worse.
Chriss Street knows California’s financial status. He has written articles on California’s financial woes for more than a decade. He was one of a handful of individuals selected to figure out how to get California out of its financial mess after the Great Recession of 2009, and he knows the financials of the state.
He has been warning for some time that the state is in serious financial trouble, much more than is being reported. This is one of many reasons Street is behind the split and formation of the new state of New California.
In an exclusive report supplied overnight, Street says the following about the financial situation of the state of California.
The non-partisan California Legislative Analyst Office just acknowledged the State of California business model has collapsed. After projecting $14 billion in deficits for the next two years in May, the LAO now projects the State of California faces $100 billion deficit over the next 18 months and $187 billion over the next four and a half years.
The financial press is calling the grim alert a shocking surprise, but the New California State movement that seeks to split the state in half has been issuing similar estimates for several years. The warning signs of an existential crisis has been brewing include California unable to issue a timely audited financial statement since 2018, over 1 million residents leaving the state, and collecting lower taxes after raising tax rates.
California since 2021 has burned down $97 billion of reserves to about $26 billion at the end of November, and is running $4 billion of negative cash flow per month. The liberal California Legislature also recently passed a law that limits its local school districts to holding a maximum 3% budget reserve, about 10 days of funding.
The real culprit for the accelerating crisis is the end of the globalist boom that began in California 45-years ago with the Proposition 13 Tax Revolt that catapulted former Governor Ronald Reagan to the White House. President Reagan slashed the 87% capital gains tax rate to 27%, kicking off the greatest venture capital boom in history.
Below is Street’s memo.
...more
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In the 1860s, Massachusetts filled in the Back Bay.
California could fill in San Francisco Bay and sell high-priced building lots.
Quick! Find out the name of their governor and tell him to run for president!
The democrats are lying and not being transparent? Who ever would have thought?????
A national deal is coming to sell the debt to the federal government in exchange for giving the feds more power. More nationalism. Socialism.
I believe this. It’s why the Democrat states didn’t care about their debts. They knew they would sell it to the feds.
All they need is to sign a few more superstar athletes.
I’m not a financial expert. Far from it. But could this budget problem be solved by chasing out productive citizens while at the same time importing millions of unskilled illegals?
I say this only because I want Gavin Newsom to pick me for VP.
> California could fill in San Francisco Bay and sell high-priced building lots.
Except for that little earthquake soil liquefaction problem.
If I were a California politician, I wouldn’t worry about that. That’s someone else’s problem.
What matters is not how many people have fled and are fleeing the state—what matters is whether they are net taxpayers or tax consumers.
I think we all know the answer to that question.
Hint to CA state officials: Hunter is some low hanging tax evasion fruit—go after him!
Good.
American marxists and leftists can only exist in a world of printed fiat and bloated debt to feed their bureaucratic minions and social engineering schemes
"bankruptcy" (or insolvency - yes, I know states can't technically go bankrupt) is the ONLY way political reform will occur.
Who better to run the countries finical problems than good old Gavy poo. That is when he replaces Biden.
I hear real estate was red hot in the shadow of Mt. Vesuvius back in 79 AD....
Lol.
God may do it and save them the trouble..................
History can be instructive…
“…figure out how to get California out of its financial mess…”
“…over 1 million residents leaving the state, and collecting lower taxes after raising tax rates.”
Obviously, more progressive policies are needed, more regulations punishing business, banning gasoline cars and diesel trucks, but, most important of all, RAISE TAXES!
That’ll fix the budget right up.
We are doing our part to help. We moved to Idaho and this year, for the first time in nearly a half century, we are not paying any income tax to CA.
That's been the Republican Party's policy goal for the last several decades.
> Hint to CA state officials: Hunter is some low hanging tax evasion fruit—go after him! <
Great idea. CA has some weird tax laws. They will try to tax you even if you’ve never set foot in California. All they need do is show you had some financial tie to CA. For example, maybe you live in Ohio but did some remote work for a CA company. They’ll send you a tax bill.
Certainly Hunter hired prostitutes who had a CA connection. So go get him, CA.
To those who are running for the Republican nomination for President in 2028, have someone in your campaign staff do serious research on California’s budget woes. Make sure Gavin Newsom gets the blame because when Newsom leaves office in 2027, Newsom is going to blame the new California’s governor in 2028, not himself.
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