California is officially once again the Boat Anchor of the US economy, the disaster waiting to happen. In fact, even Mexico has been outperforming California in unemployment. Should this always be the case? hard to tell. Some might blame the Beach Boys, some might blame our incompetent legislature. Maybe its just the nice weather. Jerry Brown is perfectly happy with 7.3%, he is the expert on getting people unemployed.
Who really saved California from the bankruptcy? QE, without QE the pension funds would have failed. notice the debt cartel raised the ten year treasury rate whenever Ben did the QE? That was the fix, the quid pro quo. Goldman Sachs and company did not want to get dinged because ben was bailing out the California legislature for a bonehead pension system. So GS and friends raised rates while Ben boosted the pension funds.
As a side effect, naturally, we had a huge transfer of wealth from the poor to the wealthy. But I do not hear many of the Democratic left complaining about inequality these days, as long as the public sector pensions are safe. But then, many of the Democratic left got booted from office.
Keynesians simply lied about the issue, Paul Krugman claiming that the stock market boost did not effect inequality. Plain evidence showed him to be disingenuous, to say the least. So, for much of the inequality, blamed on Obama, one can blame, instead, the California Legislature and the Keynesian mafia.
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