It is both entertaining and hopeful to focus on the now open Presidential Political Season. We will, of course, tire of it in time and whine about just getting it over with, but for now it is a chance for renewed hope and optimism...for some of us,at least. But there is an ugly threat on the horizon that threatens to make the storms in the South seem minor by comparison and that we have been "helped" to ignore by both the media and the politicians: the failure of California to take any steps to solve their insolvency.
If we are not careful, California will become to America what Greece is about to become to the European Union...a death knell and cause of economic catastrophe...we won't have to wait for the deficit bills to overwhelm us, California's failure will kick us over the cliff way earlier than that.
We all should follow what is happening in and with Greece if we want to see our own future. The European Union (EU) has rules against bailouts and debt restructuring, but that is apparently going to happen shortly. They (the EU) have already done this with Portugal...against their own rules. What does this mean? Well, Germany has indicated that they, if the process continues, will abandon the EU. Whether that happens or not (and the odds are that the German Electorate will demand it), the value of the Euro will plummet.
Consider then our own beautiful state of California...
Known by some as "the land of fruits and nuts", they do not have a balanced budget. They have no (realistic) plan to balance their budget, and, if they were a public company, would no be rated as a penny stock with no value whatsoever. Yet they continue on unafraid and promising a continuation of the "free" lunch...oh, excuse me..."free" everything.
Guess who they will ultimately expect to pay for it? Yep You and Me! The rest of the United States. And we do not have the money to do it even if we decided it was right. But the worst thing (for California) is that we don't think it is the right thing to do. But...will Obama and the Congress declare that "California is TOO BIG TO FAIL." Where have we heard that one before.
Just think...a political decision that would accelerate our financial demise. Think it won't happen under President Obama? Really? What are you smoking...because I want some! And if you thing this can turn out well for the United States of America, just keep following the developments in the EU and Greece (and the other PIGS [Portugal, Ireland, Greece, Spain]).
It is absolutely as important to us as is the Presidential campaign.