MISH has another article up about the inevitable filing for bankruptcy by the State of California. Among the threads he weaves in the article, he suggests that it is inevitable and in fact would be the best solution to the problems being faced, that the State should file for bankruptcy. I have to say that I totally agree, there is no other way to stop the public employee unions from inflicting a death by 1,000 cuts to the local economy; it just cannot be sustained for much longer before things blow sky-high.
However, I find myself asking what are the implications, if the State officials cannot and do not agree to comply with the Federal requests to stop treading on the toes of the unions or suffer the consequences? What can the Feds do? Cut off California from the Union?
What do we call the USA, if its no longer got the U? Just SA? This would actually be quite fitting in a way I guess, given that in French/Spanish/Portuguese countries "SA" is the equivalent of "Inc." to the States, or "Limited" to the UK. The whole country is run for the benefit of the shareholders after all, like a hedge fund.
Thursday, 14 May 2009
What happens if the State of California goes bankrupt?
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