Jerry "Moon Beam" Brown and his band of socialist thieves are all priding themselves on all the free sodomy and solving the financial "deficit" problems to pay for it by the usual Demoncrat solution of raising taxes (to the highest marginal rates in the country). Of course "soaking the rich" is right up there, except for the fact that they have been fleeing the state of fornication in record numbers of late.
Of course the sin of pride is blinding the socialist workers paradise to the looming "debt" problem that they have not adequately dealt with.
California's debt still a heavy cloud over state's future
Gov. Jerry Brown's new budget presented a plan to pay back nearly $28 billion owed, but various sources estimate the state's debt at hundreds of billions.
SACRAMENTO — Gov. Jerry Brown proclaimed last week that California, which now has enough cash to pay its day-to-day bills, can no longer be described by naysayers as a "failed state."
But even though it appears to be free of the deficit that dogged the Capitol in recent years, the state is no model of financial health.
…
But numerous reports by state agencies, think tanks and academics have shown the wall of debt to be many stories higher than $28 billion — hundreds of billions of dollars over the next few decades. Brown's repayment plan does not significantly reduce the sizable debt to Wall Street or account for promises the state has made to its current and future retirees but is not setting enough money aside to cover.
…
Gov. Jerry Brown's new budget presented a plan to pay back nearly $28 billion owed, but various sources estimate the state's debt at hundreds of billions.
SACRAMENTO — Gov. Jerry Brown proclaimed last week that California, which now has enough cash to pay its day-to-day bills, can no longer be described by naysayers as a "failed state."
But even though it appears to be free of the deficit that dogged the Capitol in recent years, the state is no model of financial health.
…
But numerous reports by state agencies, think tanks and academics have shown the wall of debt to be many stories higher than $28 billion — hundreds of billions of dollars over the next few decades. Brown's repayment plan does not significantly reduce the sizable debt to Wall Street or account for promises the state has made to its current and future retirees but is not setting enough money aside to cover.
…
How The Bubonic Plague Actually Saved Europe In The 14th Century
Sam Ro May 15, 2013
Studying the history of financial crises can be quite enlightening.
Deutsche Bank's Peter Hooper just published an interesting report considering crises going back to the Middle Ages.
Referring to the work of Juesus Huerta de Soto, Geld, Bankkredit und Konjunkturzyklen, and Stuttgart, Hooper summarizes what happened during the European credit crisis of the 14th century.
What's interesting is how the country got out of the crisis.
From Hooper's note (emphasis added):
"Lowering the denominator" is a nice way of saying that the plague killed a bunch of people leaving excess wealth to the survivors.
Sam Ro May 15, 2013
Studying the history of financial crises can be quite enlightening.
Deutsche Bank's Peter Hooper just published an interesting report considering crises going back to the Middle Ages.
Referring to the work of Juesus Huerta de Soto, Geld, Bankkredit und Konjunkturzyklen, and Stuttgart, Hooper summarizes what happened during the European credit crisis of the 14th century.
What's interesting is how the country got out of the crisis.
From Hooper's note (emphasis added):
In the early 14th century banks in Florence engaged in a large-scale credit expansion. This set the stage for a powerful economic upswing, which transformed Florence into the most important centre of finance and trade in the Mediterranean region. But the bankruptcy of England, a repatriation of funds to Naples and a bust of Florentine government bonds ended the credit cycle and triggered a crisis. Banks crashed and credit contracted (described in historical records as “mancamento della credenza” – we would call it credit crunch today). Real estate prices declined by 50%. It took thirty years—from 1349 to 1379— before a recovery began. Historians ascribe a role to the plague in recovery, which dramatically raised cash balances per capita (by lowering the denominator) and induced people to spend (by dramatically raising the discount rate for future consumption). As a result, deflation ended and output recovered.
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