2011: Reality check

It’s been a rough year economically in the US for most people. Next year will be rougher. The ‘new normal’ will keep sinking in terms of most people’s ability to borrow and spend money, find jobs, take long car trips and dine out. Not ideal, not terrible, more flight to quality over quantity, more focus on basics. At least it will be for people with brains and open eyes.

Here is what Governor-elect Jerry Brown (former Oakland mayor) said about California’s 2011 budget this past Tuesday a while ago per LATimes:

“We’ll present a budget on Jan. 10. It will be a very tough budget, but it will be transparent,” he said. “We’ll lay it out as best I can. We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.”

So, our state budget cuts of X billions last year were “living in fantasy land.” It was merely a sneak peak into the future.

You see, organisms really can’t live in credit cards forever. Yea, this does remind you of that old movie doesn’t it? The Christmas film where the middle class has disappeared.

Other nuggets:

In the past, state leaders relied on one-time gimmicks, some of which made the state’s deficit worse, and one-time cash infusions to patch over flawed spending plans. Those days are over, Brown said.

“The day of reckoning is upon us and I’m determined to bite the bullet, get it done in whatever way the consensus of California can be built,” he said. “Fair, transparent and enduring — that’s my goal.”

For the local angle, see below.

http://www.cbo.gov/ftpdocs/120xx/doc12005/12-09-Municipalities_Brief.pdf – options: default or bk

http://www.guardian.co.uk/business/2010/dec/20/debt-crisis-threatens-us-cities

http://www.businessinsider.com/americas-most-bankrupt-cities-2010-12

happy new year indeed! let’s get this ship sunk so we can reboot and live more in the moment…

So… how will Oakland politicians handle our financial quicksand?

A) pass the buck (state, fed, banks- hey maybe even sue teh banksters for foreclosure fraud!)

B) point fingers/ blame others. (choice A, haha) mostly past “leadership”, but not the moron voters

C) attempt to show they are “bargaining hard” with the city’s employee unions

D) say “hey look at that UFO/burglar/lake chalet/measure DD rebuilt lake amenity/how great is Chabot Space Center?/Uptown…”

E) ask old spaghetti factory to return to jack london square (they should!)

F) further prime the tax pump for MJ businesses

G) lay off more city employees, perhaps ask for another 5% cut, and even up to a 9% pension contribution, while not contributing to their own symbolic pensions

H) link arms to put more tax collection measures on ballot; raise fees on every city service; cut city services; outsource city services and sell city assets

Which will come true?

Jerry Brown: California Budget Is “Much Worse Than I Thought — We’ve Been Living In Fantasy Land”
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s