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Unread 05-12-2011, 10:52 AM
 
Location: Oakland, CA
21,090 posts, read 22,517,561 times
Reputation: 8661
Default You know things are bad around the world when...

California's "Sovereign" Debt is enviable.

Bond Debt Per Capita By Nation:
Luxembourg $4,028,283
Ireland $515,671
Netherlands $226,503
Switzerland $182,899
United Kingdom $144,757
Belgium $126,188
Norway $113,174
Denmark $110,216
Austria $97,411
Hong Kong $92,725
France $74,410
Sweden $72,594
China $68,180
Germany $57,646
Spain $52,588
Greece $49,525
Portugal $47,632
US $46,577
Australia $42,057
Italy $39,234
South Korea $29,842
United Arab Emirates $26,202
Canada $24,749
Japan $17,546
Hungary $11,667
Iceland $10,670
China $7,000
Poland $5,279
Turkey $3,884
Argentina $2,706
Russia $2,611
CALIFORNIA $1,805
Brazil $1,129
Mexico $1,646
Indonesia $651
India $187

List of countries by external debt - Wikipedia, the free encyclopedia

Compared to other large states:
Texas: $520
Michigan: $766
Pennsylvania: $950
Ohio: $962
Georgia: $984
Florida: $1,115
California: $1,805
Illinois: $1,877
New York: $2,921
New Jersey: $3,621

Moody’s Median of all 50 States: $865.

California
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Unread 05-12-2011, 10:53 AM
 
Location: Oakland, CA
21,090 posts, read 22,517,561 times
Reputation: 8661
And the media has the nerve to report that states need a bailout? Its obvious DC needs the bailout. Maybe states can start up a collection. LOL.
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Unread 05-12-2011, 11:17 AM
 
Location: The High Seas
4,679 posts, read 4,563,684 times
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I'm thinking the Debt to GDP is the important figure on that chart.
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Unread 05-13-2011, 02:31 AM
 
Location: lyon, france
23 posts, read 30,942 times
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comparisons between states and states or nations and nations are valid, but those between US states and truly sovereign nations are not. the latter face responsabilities and expenses their constituent subdivisions never have to.
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Unread 05-13-2011, 08:10 PM
 
Location: Oakland, CA
21,090 posts, read 22,517,561 times
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Quote:
Originally Posted by guignol View Post
comparisons between states and states or nations and nations are valid, but those between US states and truly sovereign nations are not. the latter face responsabilities and expenses their constituent subdivisions never have to.
Then why is the European media constantly trying to like California to Greece?

By the way, California is nothing like Greece because Greece's debt is well over 100% of its GDP and Caifornia's debt is 3-5% of its GDP.
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Unread 05-13-2011, 10:20 PM
 
434 posts, read 353,029 times
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Sure is nice to know that CA finances are in such good shape. Second bit of great news this week after Obama told us the border is secure.
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Unread 05-13-2011, 10:30 PM
hsw
 
2,066 posts, read 3,257,673 times
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GDP stats mean very little when "real" GDP is stuff that is actually economically productive....thus, very little of gvt spending, education, healthcare, retailing, tourism, housing, junk food, entertainment, facebk, etc etc is "real" GDP as it's often credit-fueled nonsense of poors...and not sustainable necessities for productive, non-welfare dpdt consumers or productive spending/investing of profitable businesses

Any rational person asks what are necessities vs luxuries...and whether society should perpetually pay for freely made decisions/mistakes of others, whether individuals or corporates or gvts....esp when US has world's most obese allegedly poor folks who mysteriously own many pets and are able to afford many kids, obesity/diabetes/ht dz, smoking, alcohol, live sports/entmt tkts, SUVs, etc etc...despite not paying any material taxes in their lifetimes...

Real debate in US will be whether wealthy in TX want to bail out commies of NYC and CA whose gvts and welfare crowds spent beyond means to try to sustain some EU-style welfare state....much like how wealthy of Germany don't want to pay for lazy dumb commies of rest of EU...
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Unread 05-17-2011, 05:45 AM
 
Location: lyon, france
23 posts, read 30,942 times
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Quote:
Originally Posted by 18Montclair View Post
Then why is the European media constantly trying to like California to Greece?
which european media would that be? some secret one our communist governments won't allow us to read?
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Unread 05-17-2011, 09:35 AM
 
Location: Oakland, CA
21,090 posts, read 22,517,561 times
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Quote:
Originally Posted by guignol View Post
which european media would that be? some secret one our communist governments won't allow us to read?
Hahahahaha....you dont have google where you live?

California is a greater risk than Greece, warns JP Morgan chief - Telegraph

Greece versus California | Money Supply | News, data and opinions on market-moving economics from the Financial Times

California's budget crisis: Greece is the word | The Economist

FT.com / Columnists / Clive Crook - America has good reason to worry about Greece


And so forth.

It turns out that all of this California bashing is nothing more than smoke and mirrors and in fact, California is NOTHING like Greece.

The reality is California's debt is downright enviable compared to the horrendous levels of debt per person we see in virtually every EU state.
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Unread 05-17-2011, 12:00 PM
 
10,197 posts, read 6,714,809 times
Reputation: 6292
Quote:
Originally Posted by 18Montclair View Post
California's "Sovereign" Debt is enviable.

Bond Debt Per Capita By Nation:
Luxembourg $4,028,283
Ireland $515,671
Netherlands $226,503
Switzerland $182,899
United Kingdom $144,757
Belgium $126,188
Norway $113,174
Denmark $110,216
Austria $97,411
Hong Kong $92,725
France $74,410
Sweden $72,594
China $68,180
Germany $57,646
Spain $52,588
Greece $49,525
Portugal $47,632
US $46,577
Australia $42,057
Italy $39,234
South Korea $29,842
United Arab Emirates $26,202
Canada $24,749
Japan $17,546
Hungary $11,667
Iceland $10,670
China $7,000
Poland $5,279
Turkey $3,884
Argentina $2,706
Russia $2,611
CALIFORNIA $1,805
Brazil $1,129
Mexico $1,646
Indonesia $651
India $187

List of countries by external debt - Wikipedia, the free encyclopedia

Compared to other large states:
Texas: $520
Michigan: $766
Pennsylvania: $950
Ohio: $962
Georgia: $984
Florida: $1,115
California: $1,805
Illinois: $1,877
New York: $2,921
New Jersey: $3,621

Moody’s Median of all 50 States: $865.

California
This isn't a good way to measure. Switzerland and Luxembourg are banking countries, and I'm betting bank debt is included in their totals. Banks, by their very nature use debt/leverage to make money. As long as the banks are well capitalized, the debt is ok. In Ireland, the banks are insolvent and the government went ahead and guaranteed the banks' debt instead of letting the banks' bondholders take a haircut (as they should have done)...obviously a problem.

A better measure would be government debt to GDP ratios. By those measures, Switzerland and Luxembourg have much lower debt than the US.

However, it is true, that the fiscal situation of the states isn't nearly as bad as the Federal Government. The states are making the tough choices (cutting spending, raising taxes). The Federal Government isn't and hasn't for a long time....which is why there is big trouble to come.
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