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Why I’m Overthrowing the Government
I finished my indoctrination on how to overthrow the government last weekend. Specifically, I attended a grass roots meeting of activists in Berkeley, California planning to collect 450,000 signatures by April to put the “California Democracy Act of 2010” on the November ballot.
The measure seeks to amend California’s broken constitution by permitting passage of budget and tax measures with a simple majority. The current two thirds requirement, which California shares only with the miniature states of Rhode Island and Delaware, is widely blamed for the legislative impasse in Sacramento that has driven the state to financial ruin.
Overdependence on capital gains—up to 40% of revenues in good years—enabled the state to just barely balance the budget at stock and real estate market tops, but to death spiral into hemorrhaging deficits during the inevitable busts that followed. Furthermore, since proposition 13 capped real estate taxes at 1.25% in 1978, the state’s population has grown by 16 million to 38 million, placing a backbreaking strain on all services.
Our hulking, language mangling, steroid injecting governator, viewed by both parties as a complete failure in his seven years in office, blames it all on Washington. There is some merit to what Arnold claims. The Internal Revenue Service is basically a giant machine devilishly designed to suck money out of California and spend it everywhere else. The Golden State is far and away the largest revenue generator for the federal government, but only gets back 78 cents out of every dollar it forks over. The rest is blown in the Midwest, the South, and Alaska—huge net recipients of tax dollars—and usually the first and loudest to complain about free government handouts. The second biggest net payer into the system is, surprise, surprise, New York. This has been going on for decades.
Only six obstinate legislators from the farm belt and the Deep South (Orange County) are holding hostage the world’s sixth largest economy, right after France. During the frequent 24 hour debates over the budget, they show up with Costco sized bags of Cheetos, soggy baloney sandwiches, and six packs of Diet coke so they can camp out, and if necessary, sleep at their desks in order to cast a “no” vote at every opportunity.
Decades of relentless gerrymandering have made virtually every seat in the state safe, so elections offer no solutions. Daryl Steinberg, president of the California Senate, told me that voters of all political stripes are fed up to the gills. Once boasting the best public education system in the country, California now ranks 47th in spending/pupil and 49th in pupils/teacher. The University of California, the top public university in the world, and a veritable PhD and Nobel Prize factory, has endured two 20% back to back budget cuts. Students are rioting, and for good cause. Schools, police and fire departments, parks and aid agencies are closing throughout the state. My local high school had to cancel its sports and music programs to keep class sizes from rising above 40.
Antiquated infrastructure is falling apart, with the San Francisco Bay Bridge closed for five days in November, forcing the local economy to take a huge hit. The barbaric prison system, which has been ruled by a federal judge as inflicting “cruel and unusual punishment,” is letting 24,000 prisoners out early, since it can’t afford to house or feed them. The public outrage is so violent the initiative will almost certainly pass.
When it does, taxes are going to go up a lot. Target numero uno: property taxes and the top 5% of income earners. Expect a battle royal, as the top 1% of taxpayers already pay a marginal state tax rate of 10.3%, the second highest in the country after Vermont, generating 50% of state revenues. This will make our sunshine the world’s most expensive.
That will be great news for the Golden State’s beleaguered bond holders, who will love to see new sustainable sources of revenue. Take a look at the California municipal bond funds (VCV), (NCP), and the (NVX). Any hint that the Land of Fruits and Nuts is about to make a major dent in this year’s anticipated $21 billion budget deficit will cause the yields on its long dated tax free paper to shed its distressed premium very quickly, sending prices soaring.
If California were a stock, I’d be buying it now, but you can do the next best thing with bonds. If you want to join the revolution, or just learn more about the issue, go to www.CAMajorityRule.com
For more iconoclastic and out of consensus analysis, please visit my website at www.madhedgefundtrader.com
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"The Golden State is far and away the largest revenue generator for the federal government, but only gets back 78 cents out of every dollar it forks over."
Give CA back its money and the books will balance.
"The Golden State is far and away the largest revenue generator for the federal government, but only gets back 78 cents out of every dollar it forks over."
Stop sending the money.
There is a good reason the Constitution limited the powers of the federal government - so that they could take only money from the people for purposes that the states could not provide for, e.g. Defense. When the federal government started getting into social programs, the states saw it as an opportunity to get more revenues, indirectly through the federal government, instead of having to directly raise it from their people. Assert state rights and you don't have to send money to Washington.
Disagree.
Part of being in a union is doing something to balance inequities between states. Just like part of a marriage with someone who earns less than you is buying them dinner now and again. If you don;t like it, succeed, or get divorced. Why don't we just sell Michigan to Canada and be done with it.
"Why don't we just sell Michigan to Canada and be done with it."
Great idea! Michiganders might just vote for that right now. That would be one step toward simplifying the Asian Carp barrier by closing of the shipping channel from Lake Michigan into the upper Mississippi. Chicago originally dug the canal to establish a flow that would move their sewage buildup down the Mississippi. Today it is used for barge water transport of goods. A longer term solution of a “sterile zone” lock system should be possible with modern technology. The federal government’s new “electric fish barrier” of sufficient strength to do the job is on hold because it would unsafe for barge operators.
http://www.jsonline.com/news/32468089.html
The states around the great lakes are preparing a lawsuit to put a hold on the barge traffic. Obama has made a public statement against a hold on shipping
Ah you can't sell Michigan...you can only sell something that has value. Our best bet would be to throw Michigan in Canada's yard and hope they don't notice. Some of you will say that Michigan land has value, but then you probably never lived there with the people. Though there are shooting Red Dawn remake there and I'm interested to see if China would take Detroit off our hands.
"If you don;t like it, succeed"
Exactly.
I would love stay but you know the old saying: "don't piss down my back and tell me its raining"
Our present "persons in authority" at the "Federal Government" need to show us some reasons why states should remain in the Union.
The principle reasoning behind the federated governance of the Republic was to provide for the common defense. Specifically, Britain was a scourge to the Colonialist desire for independence and self government. There was defensive strength through unification and pooled resources.
Today the federated system of the USA is offensive and oppressive in the minds and hearts of the governed. Likewise for the individual State governments. The Founding Fathers would not recognize it as their creation.
If the Feds don't give us our money back, we should secede. California does not need the rest of the country. As payment for all the fiscal raping we've endured by the midwest, deep south and the losers in Alaska, we should seize the numerous naval, air, army and marine bases squatting on our land and all material therein (Hello, Fort Sumter!) while the troops, sailors and airmen can decide if they want to stay here with beachfront military housing or go back to Arkansas or wherever they came from. We don't need ANYTHING the rest of the country has to offer, including farming (We're #1!), oil (Drill offshore, baby, drill!), innovation (We've got Silicon Valley, Sorrento Valley and Hollywood: We're #1!) or population (We're #1). Ditto geographical diversity, hot chicks and lawyers, who we can use to sue the shit out of anybody messes with us. As for that giant leech called the United States Government, it needs to be surgically removed afterwhich we'll consider opening trade dialogue as yours and our trade ambassadors see fit; Texas should consider the same thing, in fact, how about we all just go back to 50 states operating around a constitution to coordinated interstate trade?
Free California!
We'd love to get rid of California. See ya. Have a nice life.
We'd love to get rid of you. See ya. Have a nice life.
We also have the weather! Case closed! Secede! Now that would be revolutionary and I suspect there are more supporters for the secession option than you may realize.
I would love it if CA seceded. Let them go off on their merry way and see how long they last. I'm guessing not very long with their socialist and welfare state slant. But who cares....not my problem. Better that than me (FedGov) bailing them out later this year with muni bond backing. Who knows - maybe they would then split into 2 or 3 states at that point.
I'd also love it if my state of Texas would secede. We'd definitely be a hell of a lot better off.
A little biased, no? I think both states are kinda goofy
Let's do it. The Republic of California can try out the Liberal solutions, and the Republic of Texas will try out the Conservative solutions. May the best country win!
About fucking time we started getting back to community standards.
+1 and thanks for your support.
Free Cali!
Free Texas!
I'm all for secession of any state. Would be the best thing that ever happened for the Constitution.
As to raping by the South, Midwest, et al, you have to take into account the destruction of American culture which eminated from California. You can send my reparations check to me directly, thanks.
Also, better re-think that agriculture if Mr. Mulholland no longer gets to monopolize the flow of water from the Colorado River.
Still, secession is good for the soul. I'm behind you all the way (seriously)
you have to take into account the destruction of American culture which eminated from California.
LOL!
What American culture? Indian killings? Black lynchings?
I detest a lot of what happens in CA, but, as people have pointed out, it's got a LOT going for it. So, spare us the sanctimonious culture crap, you're fantasizing something that never existed.
If there's anything that has to change, and WILL, it's about becoming more in tune with the land in order to achieve some sort of sustainability.
Yes American history is nothing other than Indian killings and Black lynchings. And now we can't do that anymore. :-(
Hope that Harmonic Convergence goes well for you
A-flipping-men Anonymouse!!
Cali can go where it wants, and I for one howl "Good Riddance! Finally!"
However, the rest of the Union will be keeping the water. Let LA (and all the rest) shrivel up and then "Burn Baby! Burn!"
Ahhh the water thing! Yes if states start to seceed in the West, water deals will have to be re-written and the related flow of water (and funds) will have to change.
Here in Colorado we are upstream from all of you folks in UT, AZ & CA. Low snow so far this year though. Looks like drought again!
"Ahhh the water thing! Yes if states start to seceed in the West, water deals will have to be re-written and the related flow of water (and funds) will have to change."
Don't worry RC, Broke Ass Arnold has a plan to build an $11 billion dollar CEEE-MENT canal with money he does not have. So Broke Ass Arnold will try and float bonds that won't float. Nothing like a roid-er with a plan.
Broke Ass Arnold... make like a Palin tree and leave early...
Check your watersheds again - the majority of Utah's pop doesn't need anything from beautiful Colorado.
It's "Colorful Colorado," technically :-)
Utah is permitted 1,7MM acre feet of Colorado River water annually (an acre foot is equal to the annual water use of a household of four - about 325,000 gallons) ... which indeed is little compared with, say, California's 4.4MM acre feet.
Given the ongoing drought and siltation behind the Glen Canyon Dam, the decrease in Colorado River hydropower from Lake Powell supplying the +30,000,000,000 kW/hrs per year used in Utah might be missed before the actual water is, though.
http://employees.oneonta.edu/baumanpr/geosat2/Lake_Powell/Colorado_River...
http://www.nrel.gov/docs/fy04osti/33905.pdf
The price of desalination is falling, though it's still far from cheap. After secession and Colorado cuts us off, we'll be forced to develop affordable desalination methods, but we will, because California has the highest scientific output of the country. Afterwards, we'll sell the innovation to the world so we can pay into our bloated pension fund and give the prison union fucks another raise. But at least we won't have to call Texans family.
Ain't nothing lower than a Texan.
Now don't go blaming Cali cause your daughter scored her first threesome at 15.
So what are you calling for as the answer? You seem to be against cutting spending, they can't cut the holy gov workers or their pensions (good luck fighting that through the courts), and you seem to be unhappy with an increase in taxes. Where will the money come from then?
Without spending cuts you are not going to get a balanced budget. You jam those taxes up and those people will start looking for an exit. Taxes influence human migration. Cali is for lack of a better term a failed state. To join our brothers to the north, Michigan.
"I attended a grass roots meeting of activists in Berkeley"
I really didn't need to read past that line to understand that nothing is going to change for Kali after the "overthrow" if it goes anywhere at all. All they want to do to solve the problems is to raise taxes, get rid of Prop 13 (or whatever it is called, which caps property taxes) and basically stick it those who remain employed and unable to flee the state. That kind of thinking is over with, because wealth-redistribution statism is dying at our feet and we ought to let it do so, but we cling to foolish beliefs about what government can do for everyone and how wonderful it is. I'm not talking as a rightie or a leftie here, so spare me the partisan bs, okay?
We need to create a system that first does not involuntarily transfer wealth from a minority of industrious, self-reliant people to a majority of indolent slobs who care to do nothing specific with their lives. From that beginning, all else can follow. Without that, the crash will just continue.
One should examine the implications of allowing a State with an essentially one-party rule of the legislature (democrat) to easily build a veto-proof vote on budgetary issues. Considering the historic malfeasance of these very same legislators and their profligate spending, this seems a recipe for disaster. www.onecitizenspeaking.com
"I attended a grass roots meeting of activists in Berkeley"
Anony, I thought you were going to make a pot head joke... so allow me:
"I attended a grass roots meeting of activists in Berkeley..."
Where? At Berkeley's leading cannabis club? Did you bring a note from your doctor?
Sorry, madhedgefundtrader. As a member of the state that is TBTF, I would like to put a break up Citibank--California proposition on the ballot.
"a majority of indolent slobs who care to do nothing specific with their lives."
Priceless
Hard to blame them when you take more than 1/2 their pay in fees, surcharges, fines, tariffs, licences, sales tax, communications tax, gas tax, electric tax, cook gas tax, passed on tax (landlord pays tax, passes that on to renters) etc. etc.
The problem isn't do-nothings. I don't blame the downtrodden for giving up. I blame a goverment that thinks it can expand at will forever, and now employs more people than the goods-producing sector does.
http://jessescrossroadscafe.blogspot.com/2010/01/more-government-employe...
I meant "priceless" because of the superior holier than though attitude of the poster. Especially when indicated that just the mere utterance of the word "Berkeley" automatically throws him into his mindset: "all these liberal do nothings are taking my money".
I meant "priceless" because what divides us politically is what has defeated us. It is all part of the grand plan. This tool just walked right into the trap.