California boom and bust

The four metropolitan cities producing the most consumer inflation are in California. The inflation rate is about equal to the growth rate at the moment.  That will change suddenly when we get the next bout of deflation. With the deflation comes the inability to collect sufficient taxes and we go bust.

California’s Financial Future Looking Shaky After 2019 Legislative Session

Sen. Moorlach, a Certified Public Accountant by profession, regularly addresses the state’s huge and growing debt. He warns his lawmaker colleagues during committee hearings on taxing and spending bills. He warns them during Senate floor debate before voting on these bills. Yet these bad spending bills continue to be passed by a Legislature apparently unconcerned about the future financial stability of the state.
Most notably, Moorlach recently warned that California’s unrestricted net deficit grew by 25 percent in the last year alone. Moorlach explains that the unrestricted net asset (or deficit) is a summary of the state’s available assets after removing from the balance sheet fixed assets (buildings, parks, roads, etc.) minus outstanding debt obligations for these fixed assets.

This is failed Hispanic state policy. We see it in many of the Hispanic states to the south of us.