Bankrupt California Can Be Saved by Following Puerto Rico’s Example

I’m in Los Angeles as I write this article. Actually, I’m about 35 miles north of LA. It’s easy to understand why so many people dreamed of California. The Mamas and the Papas got it right:

On a winter's day

I'd be safe and warm

If I was in L.A.

California has become a nightmare. The beauty is still there in the majestic hills, the rolling meadows, and the breathtaking canyons. It’s too bad that the whackos have spoiled the state, turning it into an incubator for all that’s wrong with liberalism. It’s no wonder that California is one of the least business-friendly states in America. On regulations, employment, labor, hiring, tax code, and licensing, it gets an F and a D on ease of starting a business.

While getting ready for a business meeting, I turned to a news channel and saw California Lt. Governor Gavin Newsom and Art Laffer, Supply-Side advocate and author of Eureka!: The Way to Fix California, being interviewed by Larry Kudlow on “The Kudlow Report.” They were talking about how to fix California’s $16 billion budget shortfall.

Gov. Jerry Brown wants to trim some programs (a good idea) and raise taxes (a bad idea).

Laffer’s comment was on the money: “You can’t tax a state into prosperity.” Kudlow wanted to know how New Jersey could get its budgetary house in order without raising taxes but California couldn’t. Even Puerto Rico was able to do it.

When Luis Fortuno became governor in 2009 the Commonwealth of Puerto Rico didn’t have enough money to pay its bills. The first thing the new administration did was to cut 17,000 government workers, freeze all salaries, and cut government spending by 20 percent.

As expected there were protests in the streets. The governor held firm. He knew that a little pain now would result in great benefits in the future. He didn’t stop with cuts to government employee waste. He went on to cut corporate taxes and state income taxes.

Now that Puerto Rico is a tax-friendly region, businesses are moving in. As John Stossel reports, “Wal-Mart, CostCo, Coca-Cola, and pharmaceutical companies are moving to or expanding in Puerto Rico. Soon, they will provide thousands of new jobs.”

Gov. Brown wants the people of the California to vote for a “temporary” tax increase. The people who will vote yes will be voting to tax the other guy, spending will still go up, and the tax increase will become permanent.

What will businesses do if Californians vote for a tax increase "on the rich"? Move to more tax-friendly states. They might even try Puerto Rico.


Comments

comments

  • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

    Art Laffer of course was one of Reagans team that put us all back on the proper path I met him several times in that era. And business has been moving out of California. Which means the remainder will have to pick up the slack. Then of course Brown wants more social programs and more taxes to the point were the only people that will be left in California will be welfare recipients, illegals, and Union employees. Of course at that point California will implode. Of course Obama who considers California a template of what the rest of the US should look like will try to "bail them out". The best thing for California is this. Declare bankruptcy, but in their state constitution insert a balance budget amendment and in that that they must save say 15% of their taxes. Next a business code that is extremely friendly to getting back what they have lost. Get rid of ALL social programs except for those that benefit the Seniors, Vets and truly Disabled. Deport of course all illegals they are a huge drain on the economy.

    • RayR55

      Yes, yes and yes, but like you said jong, that wont happen until the State implodes. When my family came out here in 67 this place was something. When I came home from Vietnam in 70 I noticed that things were changing. The liberal agenda was growing at an incredible pace. Illegals were flowing in by the thousands everyday. After that it was all down hill and hasn't slowed at all.

      • jjkrjw

        Not to worry. We, the people, will bail out California, via obama. And Californians will continue to vote for idiots.

        • RayR55

          It's sad that people with narrow vision can look at something like the entire State of California and just assume that everyone here is a liberal, Gay or both. It really shows a great deal of ignorance on the part of the person making that assumption. Just so you know, pretty much all of the rural areas of the State vote Republican. It's the major cities here that contain the ignorant masses that are controlled by Liberals and by far outnumber the people in rural areas that do the electing. Cities like LA that are 60% Mexican and most of those illegals and still get to vote that have done the damage here. There are a lot of good, honest, hard working people here that are suffering the result of the liberal agenda.

        • jjkrjw

          Didn't mean to imply that ALL Californians will continue to vote for idiots. Some of my favorite repubs are from CA. It's just that the state always goes dem in elections.

        • RayR55

          Okay sorry, my mistake. You're right, I don't foresee this State ever voting in a conservative government. A couple people have said they are staying and seeing it through but I don't see any end to it all. It was said that the only way this will change is when the bottom falls out and it will sometime soon. Again, sorry for snapping at you.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          Sorry about that it just repeated with out printing and then came up like this.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

          I meant no insult to those who are there that are Republican and I know that there is a movement in Southern California to become another state because of the differences between it and the rest. And I do know about the suffering of the good people there. Unfortunately it must come to a head for anything to truly change and to take out the trash.

        • Michele Kilroy

          are you kidding? To make Southern California a state different from the rest? Hollywood would never stand for it. Just as the San Fernando Valley wasn't able to extricate itself from the City of L.A., the state will never be able to split, thanks to the powerful liberals.

        • RayR55

          I know you didn't Jong, it's just that things have gotten so bad here that the people like myself who are in a constant struggle to make things better get a little sensitive about the whole mess. I'm not a native Californian but both my Mom and Dad are buried here, along with a lot of very close friends. It wont be long until I have the option of moving out and that may be what happens. Like Michele Kilroy said, no separation of the State is ever going to happen and as long as Illegals and inter city blacks that are controlled by liberals continue to vote for the liberal agenda Ca. doesn't stand a chance.Honestly, I don't even know that if the bottom falls out if that would be enough to make them change their thinking. It would all somehow be blamed on republicans. I do know this, if that ever happens, cities like LA, Oakland San Diego, S.F. and some others will burn to the ground. Then people like me who live in the rural areas will have to start killing the ones who escape the chaos of the city. There will be millions of blacks and mexicans that swarm to the out lands to pillage and plunder. Thank God I'm far enough away that it would take a miracle for them to get this far. I keep plenty of arms and ammo just in case.

        • chris

          you have plenty of guns and ammo? is that legal there?
          just asking.

        • RayR55

          LOL....Yeah it is chris, one just has to jump through a bunch of hoops to get a gun of any kind now. I've had my guns for many years, so when I got them it wasn't all that hard. Right after I came home from Vietnam in 1970 I started working for a PI (Private Investigator) in LA. I had to get a CCP or concealed carry permit and I've had that all this time too. I was working in bad areas and doing some things that could have gotten me killed at the time. I was still young and thought I was invincible and was having fun. Those were the good old days.

        • RayR55

          LOL....Yeah it is chris, one just has to jump through a bunch of hoops to get a gun of any kind now. I've had my guns for many years, so when I got them it wasn't all that hard. Right after I came home from Vietnam in 1970 I started working for a PI (Private Investigator) in LA. I had to get a CCP or concealed carry permit and I've had that all this time too. I was working in bad areas and doing some things that could have gotten me killed at the time. I was still young and thought I was invincible and was having fun. Those were the good old days.

        • chris

          you have plenty of guns and ammo? is that legal there?
          just asking.

    • DarthTrader

      "Art Laffer of course was one of Reagans team that put us all back on the proper path"
      HOW IRONIC that you should say that when in fact it was Reagan who began the policy of massive Gov't borrowing (because "deficits don't matter" ) that is killing the economies of the world today. Oh it looked great in the 1980's but today we are approaching the time when we have to pay the price. Raagan pushed the Era of Corporate Socialism into high gear. We now need to stop it DEAD!

      • http://pulse.yahoo.com/_NLORN6B3ZNGCAJTFHWWFUUEY4Q jong

        Nice try however it does not fly. If you look at Europe they once again have the problem where not all the countries pull there weight this was also the downfall of the Common Market or do you want to blame that on Reagan to?? The spending of Reagan at that time was taken care of by the time Clinton had gotten in. Reagan provided an economy base and solution that was giving us a great economy that Clinton who did nothing took credit for. The real problem has been the social spending in that started with Carter and the "affordable housing bill" that was constantly "upgraded" until 7.7 trillion dollars in toxic debt for the banks. That was the type of spending that did us in not what Reagan did. Please go back to school and take some history and economics courses your ignorance is showing.

    • T Lady

      The point you make about the rest of America bailing out the Not-So-Golden-State is a strong case for more Conservatives in the House of Representatives and the Senate. That way, no matter how much Kooky Barbara Boxer and Dianne Frankenfeinstein whine and stomp their feet, along with Kerosene Maxine Waters, Marxist Barbara Lee, and the other assorted fruits and nuts the idiotic voters here seem to send to Washington election cycle after election cycle, no more Federal money should flow into the Sacramento coffers, only to be misspent by Moonbeam and his cronies.

  • http://pulse.yahoo.com/_VVX2ZFJ66HUUB3LTY54HOT5NLU pete

    I love P.R. it is one of the most beautiful places in the world. they do not alow ilegal imigration there are boarder patrol and ICE agents all over. The locals are hard working and friendly,and the surf is unreal, do your self a favor and spend some time in P.R. spend some money too, you won`t be disapointed.

    • hudmar

      No they don't allow ilegal imigration but there are sure as hell there.

  • DockyWocky

    Several times of late I have heard seers offer advice on dealing with liberals. The best was just leave them alone, there is no hope of ever getting them to change their little minds, no hope.

  • doug63

    commiefornia will be bailed out by the federal government. can you say stimulis package?

  • Guest

    Jerry Brown is clueless.....again.

  • http://profile.yahoo.com/2AWBS7UL27Z7ULVPKYTND6ZXJI Lisa

    As a native-born-Caleefornieeann...I saw this coming a long time ago...and I LEFT THE STATE.
    Where I am now, is not great as far as prosperity goes, but it is no where near as bad now as California.
    It hurts my heart to see my home state in such a state of disarray and hardship, but those still there will dig down deep and grab their boot straps...they can get back out of this quagmire.
    LOWER corporate taxes, become helpful to businesses, and jobs will return.
    So with the level of the California tax coffers. More money for everyone, means more money for CA.
    It is just........THAT SIMPLE.

    • ggswede

      Lisa, I've been saying that for years.But I'm not going to leave, I've decided to stay and fight on ! Every time a liberal confronts me,I respond in a very loud voice ,it embarrasses the heck out of them ,especially when others are around. Besides,I've been here all my life ( 63 years ),They can leave if they don't like what I have to say !

    • drdbiggs

      What do you mean "grab their boot straps" more like grab your ankles!!

  • BONCARBO

    Governor Moon Beam will get the tax increases he wants, all the Hollywood types are in the Socialist camp, but the state will never balance a budget or be the once great state it was, too many years under democratic control. Until the voters get rid of the likes of Unions, that take union dues and spend them on the liberal agenda, Maxine Waters, Barbara Boxer, Nancy Pelosi, and all the other liberals in California's government they will forever be in debt.

    • http://www.facebook.com/people/Jayne-Nielsen/100000024501720 Jayne Nielsen

      Unfortunately Boncarbo, California bleeds a deep blue so I don't foresee any positive changes anytime in the future, near or long-term. But that's what California gets for reelecting spend happy Liberal Bleeding Heart Democrats. We're now known as Mexifornia. And also California can brag about Stockton, being the first largest city in the nation to (possibly) file for bankruptcy. Yup...California, the Golden State and Stockton, Someplace Special. Only to illegals and welfare reciepients. The taxpayers just keep getting hosed.

      • Charlie

        Did they do that prior to Central Falls, Rhode Island? C.F. is tiny, but from what I remember, they were the first city in the current funk to file Chapter 9.

        • sandman

          yep you are right, I was born in C.F. as known by the locals, but I was in the one good neighborhood back in the day, 60's and even then my parents sent me to Saint Mathews School, I can read and write, not so goo at spelling though, 4-12 grades in public school after we moved out to Seekonk Mass. 2 towns over. as far as I know the tax rate now on property is around $60.00 a thousand!!! I have family still there that spend $6,000 taxes on a small 1,400 sf 3 bed home! a year!!! my late uncle had 2 tenement houses with 10 garages on one and was paying $11,000+ a yr taxes, anyone that can is moving! and the city is slowly comming around, but has a long way to go, the town workers have had to give up some, and the retires have givin up a lot, but they were promised the moon and you know were that gets you huh?

      • ahb1

        I am stuck here in California. I would leave except I can"t blast my girls out of here with dynamite. We did NOT vote for Gov. Moon Bean. I saw what he did to California last time. Unfortunately we had to many people living here now that didn't live here then.

        I grew up here and California was great (in the 50's and early 60's) Gas was 25 cents a gallon. Cigarettes weren't demonized and they too were a quarter a pack. The Helms Bakery truck used to come by the house once or twice a week. (they had great jelly donuts) We left our keys in our cars and the doors unlocked. And we never even thought it was a problem.

        We had blacks and Mexican people that lived in our town and there was no race problems we were all just people and we were all just Americans. These are a lot of what has gone wrong here and in the country. We are not all Just people and Just Americans.

        Hollywood back in the forties and fifties and even the sixties to a point were patriots. During WWII Hollywood went to war and fought for the country. Today Hollywood would run like rats leaving a sinking ship before they would stand up for the country. With a few exceptions.
        And those that do not follow the herd are treated for the most part like lepers.

        Only a miracle will save California. The only trouble is the God-fearing have left or given up

  • CloBlank

    Jerry Brown's sister used to work for Goldman Sachs. Keep an eye on them . . . they control elections.

  • pduffy

    California is now "Province 19 of Mexico". You think the fight in Wisconsin was ugly, wait until somebody tries to take down the California government employees union. California will be an ash heap before there is a dime cut from those deadbeats, as they will drive that state into the ground before anything changes.

  • Oregondriver

    So far, I have not heard of anyone wanting to cancel the funding for the high speed train to nowhere. That is a $2Billion "savings" right there! It is this kind of spending that is helping to destroy the state, and it is evident that they have not learned that if you find yourself in a hole that is getting deeper, the first thing you must do is stop digging!

  • Willie

    You can't expect Brown or Obama to exhibit intelligence that neither possesses! Until we get Obama and Brown out of office we are stuck in limbo!

    • Michele Kilroy

      good luck getting Brown out. There are no conservatives here, well practically none. And Hollywood has the microphone.

  • http://www.facebook.com/people/Jayne-Nielsen/100000024501720 Jayne Nielsen

    That's the Democratic way....tax our way into prosperity. I hope all Americans who are bound and determined to vote for Obama again will take a long, serious look at California because this is where America is headed if Ospendo-in-Chief gets reelected.

  • BOOMER8

    Tax Increases are always "temporary". The goofs in California will probably say OK to JB, and find themselves in worse shape than before.
    Perhaps the State of California, like our Federal Government, needs to suffer a financial collapse before the problems can truly be addressed. Severe, yes. Necessary? Possibly. Both are extremely top heavy in government waste and fraud. Collapsing the system, or it's self-collapse, would at least force it's rebuilding from the ground up, rather than attempting to maintain the system from the top down, which is what politicians almost always try to do to maintain the status quo.
    In other word, they don't really want to change anything until they're forced to.

  • rocquedog

    First of all, you need to get rid of the millions of Illegals that are bleeding your state dry. Including that illegal Villagarosa, mayor of LA. This guy is a plague to your state and is no American citizen. He wants to make Calif. into a state of Mex. Then start working on the traitors ie; Pelosi, Boxer, Brown, etc. Maybe if you do all that, the rest of American won't have to put a fence around the entire state of Calif. just to keep the disease from coming to other states.

  • Charlie

    But...but....what Puerto Rico did made sense. That's not allowed!

    I think the best thing to do is to start with a national movement to abolish all income taxes, and replace them with consumption taxes. In places like California, with such a huge number of wealthy people, they won't be hurting for income.

    Next is to reduce government size and spending by at least 20%, if not more.

    Last, reduce or modify business regulations so they actually work. If Masscachusetts can start doing that under a far-left Democrat (Deval Patrick,) no state has an excuse to not do it.

    • Michele Kilroy

      There aren't nearly enough wealthy people in CA to keep the state afloat! And they're leaving in droves. Small businesses are leaving, and who can blame them? This has become a 2d world state.

  • nmleon

    Let's not forget the economic damage the greenie weenies have done.

    I lived in the San Joaquin in the '60s when it was beautiful productive ranch and farmland. Now it's an unproductive (lost tax base) wasteland, like some miserable third world country, all to save the Delta Smelt (a minnow). When I lived there, there was drilling offshore and gas was cheap. Now there are special boutique fuel requirements and the price of fuel is absurd.

    I could go on (and on and on) but you get the idea. It's not JUST taxes and public employee benefits, it's also the ridiculous regulations put in place at the behest of the greenie weenies praying at their alter to Gaea.

  • http://pulse.yahoo.com/_O24NYT5HOQNDEJ3TUT5QOTLOF4 TM

    To all of you voters who voted jerry brown back into office I say this. Fool me once shame on you, fool me twice shame on me.

    • Robalou01

      I couldn't agree more! Jerry Brown....Is that the best Califoronia can do???? I predict California goes the way of Greece...

  • Jude

    The best thing to do for Hollywood California is stop going to movies, purchasing movies and renting movies. Same thing with the music industry. Anyone who is doing this is supporting their cause...socialism and lining their pockets with gold. Spend your money on something else. I have cut out everything in the above and don't miss it at all. I listen to the radio and hardly ever watch TV. Besides it's mostly worthless junk anyway and makes most people sit on the couch and get fat. Get out and do more with friends, family and anyone who could use a helping hand from you.

  • Phil

    The REAL problem (in other words, what CAUSED the situation AND prevents the solution):
    The California voter!
    That's it in a nutshell!!
    The California voters are stupid ... in a clinical sense, not in a pejorative sense (so you Californians needn't be offended). They are stupid, liberal-minded idiots who haven't a clue about math, and as all sensible people know, if a person can't do math, that person is an idiot. (Math is the only independent measure of brains.)
    Californians cannot figure out that spending more than you take in is simply foolish.
    So, let them continue to spend, spend, spend, and then tax, tax, tax (the liberal mantra) and the rest of the country can watch with popcorn the ongoing soap opera that has been The California Dreamin' for the last 5 years.
    Proof of the Californian voters' stupidity: They elected Gov. Moon Beam!! ... a proven tax-and-spend socialist at a time when Csl. was running a $20B deficit. What unadulterated morons!!

  • rchguns

    California can be compared and breakfast cereal. Granola because granola is made up of" Fruits, Nuts, and the rest Is Flakes".
    There is one good thing about California and that is that it shows the rest of the country where they're going to be if they don't get their sh*t together.

  • http://pulse.yahoo.com/_OC6SKJLQDZEY674X7VRYBWH6AI Tom

    California is NOT " one of " the least business friendly states, it is THE least business friendly state in America coming in at # 50 ! [ That would be #57 on the Obama scale. ] California is NOT too big to fail and America should NOT bail them out. Allow them to be a bright and shining example how NOT to conduct State business. By the way; the State of New York is #49 and Illinois is #48. Now just what do these three states have in common ? Anyone BUT Obama in November !

  • drdbiggs

    Sell California to China to pay off our National Debt! Throw in Fa99ots, Liboturds, criminal illegal aliens, etc and assorted scum ie democrat base, for free

  • Gwen Williams

    Most of the suggestions sound very good , how do we get them implemented? I am a CA native and it makes me sick to see what is happening to MY state.

  • cmjay

    CALIFORNICATION does not need to be saved. They have SELF INFLICTED INJURY.They keep doing the same thing over and over and expect a DIFFERENT RESULT. It will IMPLODE and take HOLLYWOOD with it. This is AMERICA'S GREECE and Obama wants the rest of the STATES to follow..

  • http://pulse.yahoo.com/_P7MI63TGC3KFDWBJ5QR3OI3FAI Sapient Hetero

    Oh. When I read the headline I thought you meant Puerto Rico's example of sending their criminals to live in New York and Florida.

  • webcleaner

    CA residents voted to END Welfare for illegal aliens, but the 9th Circ Court overrulled that vote as being UNCONSTITUTIONAL. Which means CA is a STATE under Seige. The Invasion from Mexico has defeated the STATE of CA. L.A. has 4.9 million people who speak Spanish ONLY. YOU LEFT WING WACKO NUTS HAVE DESTROYED AN ENTIRE STATE. NOBODY HAS TO INVADE US TO CONQUER THE USA, ALL THEY HAVE TO DO IS MOVE HERE AND CLAIM THE USA OWES THEM EVERYTHING. CA only survives on FEDERAL MONEY. Which means everyone in the USA is paying ffor illegal alien Welfare, free housing, free medical, free education, free food, etc.
    If you follow the logic of CA, then the USA Constitution is SELF DESTRUCTIVE and cannot present a challenge to any attack against it.

  • Blair

    It won't.

  • http://www.facebook.com/people/Debra-Smith/1033228304 Debra Smith

    Politicians will not "get it" because they don't want to "get it." --They just want more and more money, so that they can buy votes with kick-backs.

    Debra...

  • julian8

    cut 17,000 government workers, freeze all salaries, and cut government spending by 20 percent.

    This philosophy also worked in Wisconsin and has to be used in DC if we are to survive, instead they are looking at a new buracracy, the Dept of Drone Survelance and Control of Civilians.

    • Michele Kilroy

      You can't cut the HUGE pensions, benefits and salaries government workers have (paid by taxpayers in the private sector), and that's what's killing CA. They have contracts which can't be broken. Unless the state finds a way to file BK, and that would be unprecedented.

      • julian8

        Maybe it is time a precedent was set. The takeover of GM and the relegation of preferred stockholders to the bottom of the line was unprecedented also. Maybe Greece could be the precedent, or the example with no precedent. We are sailing on the Titanic.

  • MM from Georgia

    I worked in California briefly in the early eighties for Eastern Airlines (laid off in Atlanta and Houston) and it was a lot better then, of course. The people seemed a lot more normal - many freakos running the place now, a sad situation, a nice place gone haywire. Didn't Governor Pete Wilson leave the state in great financial shape with a $16 billion surplus? Remember Pete beating retread Moonbeam for the U.S. Senate and Moonbeam's sister for governor, also Ronnie knocking off Brown's father for governor? They don't want to talk about that now. Jong is right - very perceptive : Ronnie was great. I miss him. Ronnie was and is lied about constantly by the left. Democrat spending not tax cuts blew up the eighties deficit. I live close to the Ronald Reagan Parkway - great name! I miss Paul Harvey also - both were upbeats guys who kept our spirits up. I worked in Reagan's '76 campaign as a volunteer.

  • http://MakeCash10.com/ Kristelle De Leon

    just as Chris explained I'm surprised that you can profit $4886 in one month on the computer. have you read this link

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  • http://pulse.yahoo.com/_SRYTEBFK5TGRSFWDLKCZYRMHYE Ron

    Why not give California back to the Mexicans and sell them the improvements. Leave ownership of everything as it is, just start calling it Mexico and see what changes occur. It may get better.. See what Mexicans can do with it. They can't tax it more. Can Beverly Hills declare itself to be a protectorate like Monaco?

  • http://pulse.yahoo.com/_SRYTEBFK5TGRSFWDLKCZYRMHYE Ron

    During the past several years, over 2 million people have left California with about 1 million relocating to Texas. Fortunately for Texas, the producers are moving here leaving the bums there. Where did the other million go? Many of the older ones went to Central American countries where their remaining wealth permits them to live relatively comfortably and much more stressfree. Ron in Plano

  • AmeRican*51*Luis Arroyo

    Unfortunately, Republican statehood incumbent Luis Fortuño lost re election by less than one percent.
    (46.5 to 47% A.G.Padilla)

    Padilla immediately made clear...
    1. no recount!
    2.Statehood victory after the public's 54% rejection of Commonwealth was null and void because "Its was not a clear majority. (Yet he declared victory and ruled out a recount despite ONLY getting 47%!)
    3. Told Moody's, Standard and Poor,as well as FITCH....."I COULD CARE LESS what bindholders say...I Govern for the people,not them. If they dont like it,and want to tell me how to run Puerto Rico, RUN FOR OFFICE! BETTER YET, VOTE FOR THE PNP/STATEHOOD PARTY. They bent over for you and did EVERYTHING YOU WANTED!"

    PR municipal bonds were downgraded immediately ti where we are now..one step above junk status.

    The PPD "popular Democrats" Not kidding, THATS THEIR OFFICIAL NAME! And their party member Gov. Padilla ,are opposed to statehood and Independence. Yet propose an unconstitutional hybrid called "Enhanced Commonwealth" .
    The US Senate this past summer killed the idea as an option. Senators Wyden and Murkowski told him..only 2 constitutional options await PR....Statehood or Independence. (Google PR governor a moron/you tube)

    Now the Governor attempted to take 50% of territory's tax revenue from "IVU" and pass it to a government agency called COFINA to borrow!
    The bondholders just did a pre emptive strike, with Moody's and S&P dropping COFINAS BOND RATING TO ALMOST JUNK/SPECULATIVE.

    Now the Democrat ("populars") are looking for a loophole to file BANKRUPCY! THEY CLAIM THAT.....Since sovereign states cannot file bankrupcy..PR as an unincorpirated territory (not sovereign)...can.

    All of former Gov. Fortuños deficit cutting measures,massive extra state employee layoffs, elimination of red tape, Bilingual education, Investment initiatives, Natural gas pipelines HAVE BEEN REVERSED BY THE DEMOCRAT "POPULARS"!!

    I see a conspiracy by the PPD to disqualify PR from statehood ..BY BANKRUPTING AND RUINING IT ECONOMICALLY. AFTER ALL CONGRESS WILL NEVER OFFER STATEHOOD TO A BANKRUPT TERRITORY. Thats the "popular Dems strategy.....Perforced Commonwealth or independence in a hybrid called "Free Association" on 4 million American citizens. 98% ofcwhom desire permanent political union and retain US citizenship with the USA.

  • AmeRican*51*Luis Arroyo

    The Party Of Deceit.....
    The "POPULAR DEMOCRAT PARTY" OR "PPD/PDP"

    In a prevous era when PR was illiterate, the center-left Democrat party of Puerto Rico decided to do a "ONE UP" against the then "Republican Statehood Party" (Today's NPP/PNP "New progress Party".)
    The injected "Popular" into their name!
    Thus implying that win or lose..they are the "popular" (legitimate) party of PR!! "
    For decades they preserved Commonwealth status (unincorporated territory) for the benefit of the billion dollar industries of PR such as Aerospace Lockheed Martin, Ffarmas like Pfeizer,Merc and other interests looking to skip US corporate taxes.
    Did you know Puerto Rico's GDP is 101 Billion? Identical to Mississippi's. Yet, because its not a state ,legal (as a non state, key labor laws dont apply) wage discrimination against non state residents has gotten to the point that wages in PR are only 1/3 those of Mississippi!
    The PDP loves this,as its a painfull argument against statehood to their advantage.
    Ninety eight percent of Puerto Rican islanders treasure their US citizenship and political union with America.
    Yet this group is split 50/50 between the pro statehood faction (willing to accept statehood and contribute fed taxes.) vs. the other 50% who have been deceived by the PDP into believing they can have it without statehood. This is despite repeated points by Congress that having permanent union under Commonwealth is impossibly unconstitutional,since the island falls under Congress's territorial clause.

    Now a radical seperatist wing runs the PDP party (including Gov Padilla,who sparred with and lost before the US Senate)

    They almost succeeded into tricking over 33% into voting for independence in Free Association under the deceitfull name..."Sovereign Commonwealth!