Obama gets tough with California

Noticed this on Drudge. It’s the LA Times’ most viewed story today, even though it’s not close to the top story on their front page. You think Californians might be worried?

Another example of Obama strongarming his opponents. So much for state’s rights. Oh, and just to complete the trifecta, the wage cuts that Obama wants restored are to workers in the healthcare union.



Schwarzenegger’s office was advised this week by federal health officials that the wage reduction, which will save California $74 million, violates provisions of the American Recovery and Reinvestment Act. Failure to revoke the scheduled wage cut before it takes effect July 1 could cost California $6.8 billion in stimulus money, according to state officials.

Meanwhile, CA already can’t pay its bills, and believes it will be out of money by July. They’re planning on emptying the prisons because they can’t afford to house inmates.

The California model of government was and is unsustainable. The Federal government is adopting more and more components of that model. What happens in California, and Obama’s response to it, is a precursor to what will happen to our economy as a whole. 

It’s not even clear if a state CAN go bankrupt. But you can be sure they won’t be able to meet all of their obligations. CA already has a hard time borrowing money, and that will get worse as the US Treasury starts to run into problems borrowing. California employees are already taking furloughs.  How long before they simply stop getting paid? Except for the union workers of course, they MUST be paid, even if they’re not working at all.