The California Cancer
California can't afford to pay it citizens the tax dollars it owes them.
Many of California's citizens can't or aren't paying the taxes they used to pay.
California's expenses keep rising creating an ever growing deficit.
If California doesn't pay, its citizens can't spend that money further exacerbating the slowdown.
Do the citizens who are being stiffed have the right to withhold paying taxes until they square with the state??? Seems reasonable. If you owe me ten dollars and I owe you twenty....I simply pay you ten and we are even. However, then California's revenues for next year will decline by the equivelent amount that it owes making the problem EVEN WORSE!!!!!
Government printing in this situation solves nothing because its effect would be the equivelent of splitting an apple in two and saying which would you rather have, a whole or two halves?
The problem is not the quantity of money in circulation...it is a solvency issue....very very different then The Great Depression(a liquidity crisis where printing would have solved the problem) and something MOST of the Motley Fool bloggers fail to recognize.
It should not surprise you that so many are missing this since many of the commentators are english or economics majors and very few have actually owned their own businesses.
At this point, much of the country is broke or on the brink of bankruptcy. Whether you print any more money makes little difference. If you have twice as much money and the prices of goods are twice as much, you are still broke.
At this point, the question is what demands will government make on its citizens to resolve this issue? We as Patriotic Americans may be asked to hand over our retirement accounts for the good of the nation or to protect our national secuity. The more you have, the more you will likely be asked to give........it could be a lot because our national security may depend on it.
When you have Pancreatic Cancer...you will do or try just about anything. Welcome to the world of California Cancer....and if you don't live in California......don't cheer too loudly...it is spreading rapidly around the nation.
Reminds me a bit of the black cow telling the white cow "I am glad you are in front of me" as they are both in line for slaughter.