Rush's Morning Update: Bankrupt
March 11, 2010
Watch It! Download Morning Update Video in QuickTime
In a recent issue of Slate, the online magazine, political reporter Christopher Beam researched a question growing in many people's minds: "Can California declare bankruptcy?" The answer is no. Beam explains that if California can no longer meet its financial obligations and runs out of borrowing sources,the federal government can put the state into receivership.
To manage the state's debt, the feds would appoint an accountant who wouldin turnbe overseen by a judge. The accountant, or the California Czar, would have the power to force creditors to renegotiate the terms of their outstanding loans.
Another unsettling fact for creditors: The state cannot be sued; it has "sovereign immunity," and it can keep on borrowing until creditors figure out they're never going to be repaid in full and just stop lending them any money.
So what's California doing in the meantime? Well, as always, the legislators who run the place say a new tax will help plug a massive budget hole; the latest gap --$20 billion. So last week, the state raised taxes on gasoline (again). Which, of course, will further depress commerce and further erode the state's tax base elsewhere.
Despite Mr. Beam's diligent research, I have come to a different conclusion. The liberals that run California took a once-prosperous state and turned intoutter shambles. For all intents and purposes, California is already "bankrupt." Thingsare not going tochange for the betteruntil the libs are driven from office.
Now, I know you say, "But Rush! You and every one of these updates essentially say, 'Until we get rid of the liberals.'" That's right! And I'm going to keep saying it until we do! I'm not going anywhere until it happens -- it's the only way we're going to save the country. Learn it, love it, live it!