MSM: Will California become America’s first failed state?

(Guardian) – California may be the eighth largest economy in the world, but its state staff are being paid in IOUs, unemployment is at its highest in 70 years, and teachers are on hunger strike. So what has gone so catastrophically wrong?

MSM: California board votes to drop healthcare coverage for 60,000 children

(LATimes) – As a result of state budget cuts, the Healthy Families program will have to begin terminating coverage for more than 60,000 children on Oct. 1. Nearly 670,000 children could be dropped by June 30.

USPS May Be Unable to Make Payroll in October and Retiree Health Plan Costs, Unions’ Letter to White House Says

On July 14, unions representing United States Postal Service (USPS) workers wrote the White House with “extreme urgency” asking for a meeting to address lack of funding for both employee payroll in October and health benefits for retired employees.

The TRUTH …

The United States is now the most indebted civilization in the history of the world and ground zero for the financial crisis.

MSM: Who Killed California’s Economy?

(Forbes) – Right now California’s economy is moribund, and the prospects for a quick turnaround are not good. Unable to pay its bills, the state is issuing IOUs; its once strong credit rating has collapsed.

Schwarzenegger declares fiscal emergency

(PressTV) – California Governor Arnold Schwarzenegger declares a fiscal emergency as lawmakers failed to pass a budget to close the state’s $ 24.3 billion gap.

MSM: Social Security May Be Running Out Of Cash Fast

The financial health of Social Security and Medicare, the government’s two biggest benefit programs, have worsened because of the severe recession, and Medicare is now paying out more than it receives.

The Financial War Against Iceland

Being defeated by debt is as deadly as outright military warfare.

The biggest Ponzi scheme of all

I keep reading well-informed Americans complaining that the real scandal isn’t bonuses to corrupt/overpaid/incompetent executives, but the funnelling of American taxpayer money to counterparties, many of them foreign banks. I don’t think Americans are ever going to understand it. First of all, it isn’t taxpayer money. No American taxpayer is going to pay more taxes over this, at least not directly. The treasury is just going to run the printing presses a bit longer.

Playing the Banking Game – How Cash Starved States can Create their Own Credit

What does the State of North Dakota have that other states don’t? The answer seems to be: its own bank. In fact, North Dakota has the only state-owned bank in the nation.

MSM: One in five California public workers to be fired as Arnold Schwarzenegger cuts deep

The state of California was yesterday set to fire 20,000 public employees as it teetered on the brink of a total financial collapse.

MSM: Arnie Schwarzenegger joins the ranks of the girlie men

After years on the brink, California is finally going out of business

Astonishing Incongruities – Is It Time to Bail Out of the US? – Paul Craig Roberts

California State Controller John Chiang announced on January 26 that California’s bills exceed its tax revenues and credit line and that the state is going to print its own money known as IOUs. The template is already designed.

MSM: California controller to suspend tax refunds, welfare checks, student grants

John Chiang announces that his office will suspend $3.7 billion in payments owed to Californians starting Feb. 1, because with no budget in place the state lacks sufficient cash to pay its bills.