{"id":8992,"date":"2015-06-11T06:19:26","date_gmt":"2015-06-11T11:19:26","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8992"},"modified":"2015-06-11T06:19:26","modified_gmt":"2015-06-11T11:19:26","slug":"what-does-california-gov-jerry-brown-know-about-the-next-crash-and-recession-that-we-dont","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8992","title":{"rendered":"What Does California Gov. Jerry Brown Know about the Next Crash and Recession that We Don\u2019t?"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/06\/11\/what-does-california-gov-jerry-brown-know-about-the-next-crash-and-recession-that-we-dont\/\" target=\"_blank\">What Does California Gov. Jerry Brown Know about the Next Crash and Recession that We Don\u2019t?<\/a><\/h3>\n<p>California was America\u2019s Greece in 2009. It had excellent wine and olive oil. But tax revenues were collapsing. The deficit ballooned. Its credit rating was cut to the lowest of any state in the US. It couldn\u2019t borrow at reasonable rates. And when, under Gov. Arnold Schwarzenegger, it couldn\u2019t pay its bills with real money, it sent fancy-looking IOUs to its suppliers.<\/p>\n<p>Today, California is flush with money. The economy in the coastal areas has bounced back. Unemployment, while still high in some areas, continues to drop. The budget is on its second annual \u201csurplus\u201d in a row. Capital gains taxes\u00a0from the booming tech sector, the soaring stock market, the white-hot property sector, and all kinds of other investment activities, on top of some \u201ctemporary\u201d tax increases, triggered a flood of revenues \u2013 $6.7 billion\u00a0<em>more<\/em>\u00a0than Brown\u2019s office had estimated just in January.<\/p>\n<p>OK, no one can figure out how to deal with the unfunded pension and healthcare liabilities. But what the heck, lawmakers at the Democratic stronghold are now fighting over how to spend the \u201csurplus.\u201d They\u2019ve got till June 15 to figure it out and pass a budget or their pay will be docked.<\/p>\n<p>Gov. Jerry Brown, sworn in for his fourth and final term in January \u2013 he\u2019d served two terms in the 1970s \u2013 is putting his stamp of frugality on the budget, trying to stem the flood of spending proposals. But lawmakers need to be reelected, votes need to be bought, special interests need to be satisfied, and so the money needs to flow.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Does California Gov. Jerry Brown Know about the Next Crash and Recession that We Don\u2019t? California was America\u2019s Greece in 2009. It had excellent wine and olive oil. But tax revenues were collapsing. The deficit ballooned. Its credit rating was cut to the lowest of any state in the US. It couldn\u2019t borrow at [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[101,238,1167,3973,1264,824,4254,4255],"class_list":["post-8992","post","type-post","status-publish","format-standard","hentry","category-economics","tag-california","tag-economic-crash","tag-greece","tag-jerry-brown","tag-recession","tag-unemployment","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8992"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8992\/revisions"}],"predecessor-version":[{"id":8993,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8992\/revisions\/8993"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}