California Debt & High Speed Rail

A recent study indicated that local and state government in California has amassed a debt of about $1 Trillion.  The Socialists that control all offices in State Government continue to borrow billions each year to fund operating expenses because the state Constitution prohibits deficit spending.  What a laugh.   And Californians continue to vote for Bond Issues; as though it is free money.  In addition, there is well over $100 Billion of unfunded liability sitting out there to fund local and state public employee pensions.   To put this all in perspective, the California state 2014 - 15 budget will be around $155 Billion.  

At the same time, there are Socialists in California, including Governor Moon Beam Jerry Brown, who is running for reelection, that want to fund a high speed train between Northern and Southern California that is not needed, using more borrowed money to pay for it.  Are they insane.  California does not even have good public transportion within most major cities in Southern California, which leads to grid lock on their freeways.  If the state was going to spend this money, it would be much better to focus on a high speed monorail system, within Southern California, that people could use to go to work every day.  Both Texas and Florida would also like to see such rail systems built connecting their major cities; but in those Republican run states,  it will not happen unless done with private money. 

Californians live in La La Land as though the bill will never come.   This may be because 20 million Californians out of 35 million get some kind of government check every month.  However, in fairness, the same thing is happening all over the United States, including in places like little Puerto Rico that has $70 Billion in debt and still issues junk bonds to keep the party going.  Once politicians of both parties figured out that they could borrow money to win elections in order to keep the pork flowing to their PEEP's, it put many states and the federal government on a path toward bankruptcy.   There is not enough wealth and assets in the United States, assuming all were confiscated, which the Socialists would love to do, to cover all of the Debt that exists in our country.

The end of this story is a national disaster that will hit the people of the United States like a nuclear war.  The only outcome this Blogger sees is complete economic collapse and default on all this Debt, which history teaches us would lead to civil strife on our streets and the potential dissolution of the United States.  While foreign countries that buy our Debt, including China, that owns about a Trillion dollars in T-Bills and other instruments will lose their money, when all of this comes crashing down, so will all the pension funds and individuals that have bought tax free local, state and federal bonds presuming a "safe" investment.  The fact is that none of these bonds are safe.  When interest rates go up and they will go up and all these bonds need to be refinanced, we will reach a point when the interest on the Debt alone is unsustainable.  Then what?   We are facing a big mess.  California is just one of many examples of fiscal insanity that exists in our country.  This is all just one gigantic Ponzi Scheme. 

WE THE PEOPLE better stand up and take control by electing Common Sense Conservatives in 2014 and 2016 and beyond as our only hope of getting all of this under control before it is too late.   Sadly, it may already be too late.  In the meantime buy guns, gold and real estate to plan for the worst that could occur.