Posted Feb 14, 2017 by Martin Armstrong
On the one hand it would be nice to see Trump tell California go ask Mexico for aid since Trump is NOT their President. The California debt and unfunded liabilities exceeded $400 billion last year without a prayer of reducing this crisis. The California pension liabilities are way undervalued for they are based upon high expectations that are unrealistic. CALPERS lost probably close to $1 billion with this current rally for they sold stocks thinking they picked the high based upon politics. The pension liabilities are probably 10 times what the state claims. If that is true, given the $2.2 trillion GDP of California, their debt may be just under 50% of GDP.
Simply put, California benefits from a democracy in voting to perpetually live vicariously off of the socialist system with other people’s money, which amounts to the California Dream. They tax retirees without any regard for retirement as if what they earn is no different than a wage. It is one of the worst states one can retire in. They never respect people who have worked all their life and demand to tax every penny they get during retirement.
While California politicians boasts Trump is not their President and Governor Jerry Brown bashes Trump along with Nancy Pelosi, they go hat in hand and on bent knee pleading f0r help from a man Pelosi says she cannot work with at all. There are people trying to start a petition to counter California’s petition to separate. Those outside are trying to start a petition to throw California out and cut off all aid and want Trump to extend his wall cutting off California.
I suppose if Trump helps California, the left will still bash him and the Governor will not acknowledge Trump helped him at all. So it is probably a no win situation either way. California will be a Spanish speaking state as the majority of the population in less than 20 years.