California nightmare for the global economy?

[308Mike]

Linkarooni:

California nightmare for the global economy?
Peter Navarro
Friday, August 15, 2008

Will the California budget crisis tip the United States into recession? The California economy is certainly large enough to inflict such damage. It's the seventh-largest economy in the world and home to close to 38 million Americans.

California's budget deficit is by any reasonable measure enormous. This budget deficit is estimated at $17.2 billion and represents more than 17 percent of the state's general fund expenditures (about $101 billion). In contrast, New York, which faces the second-worst budget gap in the nation for fiscal year 2009, has a gap of about $5 billion, which represents less than 10 percent of its budget.

In closing its past budgetary gaps, California has acted more like the federal government rather than merely one of 50 states. Indeed, unlike the federal government (or sovereign nations), each state is required to balance its budget each year; and no state, at least in principle, has the authority to engage in the kind of discretionary deficit spending both the federal government and nations around the world routinely use to stimulate their economies.

More................

This state (run by MORONS) faces some tough choices ahead. This is what happens when dhimmicraps are in charge of the money (the legislature).

[blackeagle603]

You see how CA Assemblywoman Nicole Parra (D) got booted from her office for not voting on the budget (related to water issue)?
link

She wouldn't stay bought by her party and unions. heh, heh, heh. Little glimmer of hope in there somewhere.