California Is Insolvent (Broke) (Los Angeles, San Diego: new home, universities, subdivisions)

[Tex?Il?]

Originally Posted by EscapeCalifornia

I don't think you know what "insolvent" means.

California could default on bonds and bounce payroll checks and people like you would still be making up excuses about how its not that bad and the weather's still great.

Well, when that happens, you can say "I told you so."

In the meantime I will have faith that California's unique position to provide North America with produce, to handle and ship what comes in and out of Asia, to provide the world with the latest technology, to attract the best and brightest minds to its universities, and people all over the world to recreate, will bring in enough revenue.

I also have faith, that the state even with whatever poor decisions, dysfunction, that its austerity measures will actually have some impact on getting the state back on track. And believe me, they ARE austerity measures. Just look at the cuts to schools (a little better now, than in the last five years), or the state parks. As far as fiscal spending, California is actually one of the most tight states right now. I should now, I'm in community college education, and things are still pretty bare bones right now. Same goes for the facilities at state parks. Its those states with no income tax, that are probably going to find themselves short on revenue in the future.

I'm also not going to put a lot of faith in the long term economic sustainability of a places that get by only on lower costs of doing business. Thats never the only factor behind economic development. And don't use China or Mexico as examples. Costs of doing business in Africa are still lower than Mexico or China, but that hasn't meant economic development in Africa.

[EscapeCalifornia]

The thing about faith is that it allows you to ignore reality. Its a coping mechanism that lets starving people have more kids with the faith that somehow they'll get by. I'm sure the starving people in North Korea have faith that their Glorious Leader will destroy the Americans.

[bigdumbgod]

Originally Posted by EscapeCalifornia

The thing about faith is that it allows you to ignore reality. Its a coping mechanism that lets starving people have more kids with the faith that somehow they'll get by. I'm sure the starving people in North Korea have faith that their Glorious Leader will destroy the Americans.

Yet, unlike blind faith, what he's alluding to is the many resources that have proved to combine to bring the state's economy back, as there have been down times before, only to correct themselves and reverse course back towards prosperity. There's always a new wrinkle to deal with (lot of pension issues this time), but we're not a one-trick pony state that goes dead in the water when one factor changes, as has happened to many places in the Rust Belt.

[Tex?Il?]

Originally Posted by EscapeCalifornia

The thing about faith is that it allows you to ignore reality. Its a coping mechanism that lets starving people have more kids with the faith that somehow they'll get by. I'm sure the starving people in North Korea have faith that their Glorious Leader will destroy the Americans.

Yes, but my "faith" was backed up by facts. Real facts. I was using the term "faith" almost facetiously and attempt to show humility. Like, I and no one else really knows what happens, but here are the facts, unique economic assets such as the capacity to provide the nation with fruits and vegetables, capacity to move goods coming in and out of Asia, plus world center for technological innovation, plus austerity measures to education, etc. to deal with the state budget, but hell what do I know? (its the "hell what do I know is synonymous with faith). Plus cheaper costs of doing business are not a sustainable source of economic development, because there are many, many other states and countries that have that.

Now what are your facts? Again, posting articles and statistics don't really amount to much. Remember there are lies, damn lies and statistics. http://en.wikipedia.org/wiki/Lies,_d...and_statistics

I've looking for big picture patterns that consider all factors.

And no, I would say most of the starving people in North Korea at this point in time do not really have faith in their Glorious Leader. Its just that they can't speak out, otherwise they will be put into labor camps, killed, or some other violation of human rights. People only have faith in something if they see that it produces results. All that old footage from the 1930s of Germans giving the Heil Hitler salute and praising Hitler, etc., was because the policies of the nazis actually put people back to work and got the economy going again. Once they were set on going to war and once Jews were mysteriously disappearing, most people had doubts that something wasn't right, but they couldn't speak up about it, less they go to the camps.

[Tex?Il?]

Originally Posted by EscapeCalifornia

The thing about faith is that it allows you to ignore reality. Its a coping mechanism that lets starving people have more kids with the faith that somehow they'll get by. I'm sure the starving people in North Korea have faith that their Glorious Leader will destroy the Americans.

Oh, and starving people have kids in the developing nations, is because more kids are free labor for your farm/business, and your social security. When you don't have a social safety net - your only option is to have kids that will eventually support you.

[bigdumbgod]

Originally Posted by Tex?Il?

Oh, and starving people have kids in the developing nations, is because more kids are free labor for your farm/business, and your social security. When you don't have a social safety net - your only option is to have kids that will eventually support you.

In such places, it is also necessary to have as many as possible, as a great percentage are expected to not survive.

[Bob's Burgers]

[quote=Tulemutt;28970568]Not when you have assets like the continent's most fertile and productive farmland that provides 25% of the nation's food. And ports that handle 75% of the nation's trade with Asia. And most of the nation's venture capital investments. And the world's leading high tech design and development community. And the nation's greatest infrastructure of roads and highways. And the greatest concentration of highest quality academia and brain trust. And one of the greates tourist industries. And and and and and and and and.



The State of California does not own these assets. They tax these assets and property. The point was if you keep spending more than you make you are broke.

[Tex?Il?]

Originally Posted by slowbill

[quote=Tulemutt;28970568]Not when you have assets like the continent's most fertile and productive farmland that provides 25% of the nation's food. And ports that handle 75% of the nation's trade with Asia. And most of the nation's venture capital investments. And the world's leading high tech design and development community. And the nation's greatest infrastructure of roads and highways. And the greatest concentration of highest quality academia and brain trust. And one of the greates tourist industries. And and and and and and and and.



The State of California does not own these assets. They tax these assets and property. The point was if you keep spending more than you make you are broke.

Yes, but these are assets not found in other states. So they are not resources available to other state governments. There is manageable and unmanageable debt. And that's a whole other debate. But remember again, if you bought a home that costs more than your annual income it is reasonable, or a car more than your monthly income, using the same logic many use for the state of California, to say you are broke.

[EscapeCalifornia]

Originally Posted by Tex?Il?

Yes, but these are assets not found in other states. So they are not resources available to other state governments. There is manageable and unmanageable debt. And that's a whole other debate. But remember again, if you bought a home that costs more than your annual income it is reasonable, or a car more than your monthly income, using the same logic many use for the state of California, to say you are broke.

Have you ever taken a basic accounting course?

[Tex?Il?]

Originally Posted by EscapeCalifornia

Have you ever taken a basic accounting course?

I'm not sure what that has to do with anything.

People lose money and go broke on homes, real estate, and business decisions all the time.