Like ‘gold’ that turns your skin green, California’s nearly $5 B new borrowing approval (for the first 130 or so miles) for its rapid rail wonder train seems to be having more than the expected effects. California’s High Speed Train Derailing Finances? explains.
Seems the state has been paying Moody’s (the credit rating protection gang) really, really big fees for consulting services or something and of course unrelated to that, Moody’s has been issuing the tarnished Golden State sterling credit status, assuring its ability to keep borrowing instead of reducing spending. But now, the state’s debt and reducing tax intake have advanced so far that even huge fees don’t seem to produce the favorable credit ratings; it appears that Moody’s upcoming reports are unlikely to sustain the scam any longer. The $4.6 B for the choo-choo was the final straw and the states’s credit is going down. For the Democrats’ golden house of juggled debt, that’s like the juggler with knives over his head who misses his catch. It will all come down and it will hurt.
The state has over 400 cities that haven’t filed bankruptcy yet and only one of its counties has filed in this era. Lots of room for growth, just a slightly different type than the pols have been promising. Of course these days, Governor Moonbeam may receive a call from Washington; still, the Prez has his own problems and only borrowed money to pay for them just like the state. Interesting times for the Left Coast; will it be somehow all right, or will it be left? Stay tuned… As California goes, so goes America, right?
Off the cliff! The thing is we Californians were drug kicking and screaming into the abyss. Most of my classmates and many others fled, replaced by people in Che t shirts looking for handouts. What they couldn’t get by votes they crammed down our throats by laws and the 9th Circuit. The writing is on the wall, and Obama is following the model.