This Will Make It Easier For California

NYT: Puerto Rico Declares a Form of Bankruptcy

How are your state’s finances, net of its pension and other liabilities when stated properly?

The Feds can print money until their ears bleed.

States cannot.

Related (more than a little):

The Horror – Part I

The Horror – Part II

19 responses to “This Will Make It Easier For California

  1. i.e., the debt shell-game will grow ever larger, until the shells can no longer hide the debt.

  2. Never fear for the “men” of Goldman are near! I am confident that between Goldman and Old Yellen we can fix this and be on our way again!

    MAGA! (Many Are Goldman Alumni)

  3. DWEEZIL THE WEASEL

    “…The Fed can print money until their ears bleed.” True, and they will. The alternative is a whole lot of very angry, well-armed citizens marching on their state capitols and Mordor-On-The-Potomac. And, a large number of them would be the badge-carrying ORCS whose pensions are now worthless. Stay tuned.

  4. Always one of my favorites from Zerohedge:

    DontWorry Feb 8, 2016 9:07 PM

    I’m going to keep reposting this from Cougar_w in 2012 until you can all recite it from memory:

    These fuckers are going to print hard enough to wake the dead. They’ll print like mo’fos, print like mad men, print like fly pimps. Print until their eyes bleed.

    They will print via the swaps, via bank bailouts and mergers, via fixed Treasury yields, via real honest-to-God negative interest rates, via loans to banks on no collateral, via payroll tax reductions, and in the end via actual fiat paper instruments which they might very well drop in bails from actual mutherfucking helicopters.

    They will not give two figs what anyone thinks.

    Here is why.

    Because this is the Goddamned end of it my friend. There is no accounting beyond this point. There will be no history of it. No one to take notes of rates of exchange, or of the graft and violence, nobody to worry about the deficit or the GDP or the national debt of any nation large or small under the blazing Goddamned sun.

    End. Of. It. Does anyone bitch about how Rome totally debased their coinage at the end? Hell no. But whoever did it had enough to hand and grabbed some land with a nice vineyard and sat back and waited for the Middle Ages to start 700 years further on.

    And that’s what a singularity is about. Anything that passes through is striped of all meaning. Nothing we think is important now will remain so beyond the event horizon. Nobody will remember, nobody will write about it, nobody will be held to any standard. Ever for evar.

    So yeah, they’ll print like the mad crazed terrorists they are. Because they have nothing to lose, and maybe something to gain. Maybe a dollar. Maybe a day. Maybe a slim chance to escape with some of the loot. Whatever the fuck advantage they see in it, for themselves and their elite crap wanking buddies, they will full-on-full-time-fucking do it to advantage.

    Watch for it, Dawg. It’s totally on this time, on like Donkey Kong. And when the dust is settled in a generation hence it’s going to have become another unbelievable episode among the ages of men.

  5. Always was the plan. Commiefornia has been leading the way for how many years now ?

    Kim Jong Un’s Freemason – Irruminati Hand gestures

    We already bought the ticket (since at least 1913), now take the ride ….

    Tick Tock…

  6. Jimmy the Saint

    Since no one has posted it here in quite a while: “Guess what, guys; it’s time to embrace the horror!”

  7. Au contraire: As the article points out, other states and municipalities are far deeper and less solvent than CA is, and thus likely to pull the same shenanigans first.

    So all this does is make the meltdown of municipal and state bonds a certainty, once precedent for shafting bond-holders is set with PR’s example.
    By the time CA reneges on its bond and pension obligations, as it will with some notable likelihood, the economy nationwide should already be in terminal freefall.

    Rather than helping CA out, this seals the fate of the entire system.
    Greece was a template.
    If anyone’s future financial well-being depends on a steady diet of debtbux at any level, it’s going to be a long, cold, hungry winter of discontent.
    In a Donner Party sort of way.

  8. To the best of my knowledge, a citizen of a US territory,is given citizen status by the USA. Precedence in this matter will be huge. Who wants to wager that the working white man is about to get jailhouse ass-raped? My property tax assessment this year went up by forty one percent.Fuck you,fuck you and fuck you!

    • Not sure if it applies to other US territories – but Puerto Ricans are apparently US citizens:
      https://en.wikipedia.org/wiki/Puerto_Rican_citizenship#United_States_citizenship

      Which helps to explain the population drop. A lot of them (hundreds of thousands apparently) – have just left Puerto Rico and moved here. Not that they haven’t been doing that already for quite some time. Up here in the Northeast (MA to be exact) – there’s a lot of Puerto Ricans floating around (Ricans) – and there’s a number of cities that have been infested with them for decades. Not wholly by coincidence – those same cities are some of the biggest shit-holes.

      This would seem to be a pretty good indication that while you can the Puerto Rican out of Puerto Rico, you can’t take the Puerto Rico out of the Puerto Rican just by letting them emigrate out and live here. Pretty much disproves the “magic dirt” theory that the left is so fond of IMHO.

      I’ve been exposed to what happens when you’ve got a concentrated population of Ricans since I was in my teens – so you’re talking about 35 years or so. Taken as a group , if their behavior here is any indication of their behavior there – it’s pretty easy to see why the island is going down the shitter.

      • Yeap, and once the sprinkling of the truth regarding the
        debt bomb started over a year ago, I can tell you that lots of the doctors/nursing etc. and all in the public dole, started to leave too,
        and I suspect many of the other “public services” too. Probably
        fearing that thing called austerity.

        “The masses continue with an appetite for benefits and the habit of receiving them by way of a rule of force and violence. The people, having grown accustomed to feed at the expense of others and to depend for their livelihood on the property of others… institute the rule of violence; [1] and now uniting their forces massacre, banish, and plunder,[2] until they degenerate again into perfect savages and find once more a master and monarch.” [3] Polybius
        In its entirety here:
        http://www.preparingyou.com/wiki/Polybius

        • Yea ironic that the grifters can band together to plunder but Freefor can’t get up enough gumption to do the same in defense of said plunder…Not enough pain yet I guess…Sad That…

  9. It seems the only way to make people realize how bad this crap is – is to present it to them in terms they can understand.

    The NYTimes article says PR has $123 BILLION in debt.

    Wiki says they’re at at about 3.4 million people – and that’s been dropping for a few years (they were at 3.7+ in the 2010 census).

    Some simple math says: Congratulations dummies. Each and EVERY one of you owes $35,000 PLUS dollars.

    LOL.

  10. Detroit III

    Stop with the “expert analysis “. Your attempts to sound like an expert are.pathetic.

    California should have bern banktupt 10 years.ago but hasn’t done do and you’re clueless as to why.

  11. Anonymous

    There seems to be a common theme when it comes to how all presidents end up doing the bidding of the military industrial complex as soon as they settle into the Oval Office, no matter what they said during their campaigns.

    The common theme is that a politician’s job is to sell lies, and make them pretty if possible. In business the “president” is the chief salesman. No different here.

  12. Cassandra (of Troy)

    VIVA INDEPENDENCIA TOTAL PARA PUERTO RICO!

  13. thesouthwasrght

    One of my old college buddies just retired at age 46 from a large Florida municipal police department. He now drags over $6500 monthly, plus a large separation check he got on the way out the door. I also know another guy roughly the same age that retired as a major from a largish Florida jail and his monthly installment is right at $10k. Unreal.

    Policies this opposed to basic economics are certain to flop. Guaranteed.

  14. The simple fact of the matter at the personal level is this — If you have the option in your pension plan to cash out by whatever means short of loans and don’t — you are a fool.

  15. the suprisiing thing is there still seems to be a majority of people out there who live in reality or trump never would have been elected. how these people cant get their local acts together for the primaries to get some serious people in still perplexes me. its probably too late now but anytime in the past 15 years would have been a good time to be financially responsible. maybe not today, maybe not in 5 years, but its not going to be 20 years before this gets real and it’s really going to suck after that.