California has hit bottom – empty pockets and no more trust funds to raid.

Russ Steele

The state of California just released it’s October Statement of General Fund Cash Receipts and Disbursements. The report indicates that the annual revenue will plummet by $3.6 billion and spending will spike up by $10.2 billion this year.

California has already drawn down 85 percent of its credit lines and only has $4 billion remaining to fund a $13.8 billion deficit.  With the same sovereign credit rating as basket-case Portugal, California’s debt is at maximum risk of being downgraded to “junk” bonds.” With credit lines almost tapped-out, the sovereign debt crisis that has hammered Europe may arrive in America.

More details at Cal Watchdog.  California Redevelopment Agencies are paying up to 10% interest on newly issued bonds–that is how un-credit worthy California has become.


About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

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