Top Ten Reasons California Businesses Are Leaving California

[loosecannon]

Ca. is in trouble now that times are bad. They (primarily the dems) have been overly generous to the poor. They could afford it when times are good, but not now that times are bad.

That simply isn't what ails us. We are legally obligated too far with too many current and former state employees.

Google "Bell CA" for a primer. Multiply by 1,000,000.

It is time for a good union busting. And a state const. amendment that prohibits public employee unions.

Our state is already prone to booms and busts. The unions prevent us from adjusting.

 

[georgephillip]

What happens if the State of California begins doing business as the State Bank of California?

As North Dakota did in 1919?

 

[loosecannon]

What happens if the State of California begins doing business as the State Bank of California?

As North Dakota did in 1919?

The BoND never really materialized as planned. And it doesn't appear to have been founded to deal with fiscal stresses.

How could CA capitalize such a bank? Would this require a constitutional amendment? Why would both parties support this idea (what's the compelling upside?), and how could they expect to get the bank legislated without gutting the program in the process as happened in ND?

I always thought that all banks should be nationalized, but I like the idea of state banks too.

 

[georgephillip]

Laura Wells, Green Party candidate for governor, had this plank in her platform.

I suspect ALL Republicans AND Democrats would have to be FLUSHED from CA government before we could answer any of your questions.

Ellen Brown seems a good place to start.Web of Debt - HOW CALIFORNIA COULD TURN ITS IOU’S INTO DOLLARS

 

[loosecannon]

A state-owned bank could be fast-tracked into operation in a matter of weeks. With over $17 billion available to deposit in its own bank, California could create $170 billion or more in credit -- enough not only to meet its budget shortfall but to fund many other much-needed projects; and rather than feeding an ungrateful Wall Street, the bank’s profits would return to the state and its people.

I like it, and for all the reasons why I already liked the idea of federal banks, publicly held federal banks:

>There is no reason to give away the power of fractional reserve banking to private interests. The people themselves deserve to retain that power within their own agencies.

>all of the profits from banking would rightly be allocated towards offsetting taxation or providing mobetta services. Like lower interest loans for home buyers etc. Low interest small business loans that directly stimulate econ growth.

But I am not surprised that 6 of the 7 banks that CA has deposited money into won't take the iou's. They aren't money, they aren't letters of credit or drafts or any kind of legal tender.

That problem would be solved with a state owned bank, the bank could issue drafts so long as it stayed within the bounds of banking rules and laws.

But on the flip side: If CA had the option of sucking dry a $170 billion nest egg, it would be spent by now and we would still have a budget shortfall. There would have to be safeguards to prevent the leg from tapping those resources for non emergency purposes.

 

[uscitizen]

Damn Swartznegger!

 

[william the wie]

A state-owned bank could be fast-tracked into operation in a matter of weeks. With over $17 billion available to deposit in its own bank, California could create $170 billion or more in credit -- enough not only to meet its budget shortfall but to fund many other much-needed projects; and rather than feeding an ungrateful Wall Street, the bank’s profits would return to the state and its people.

I like it, and for all the reasons why I already liked the idea of federal banks, publicly held federal banks:

>There is no reason to give away the power of fractional reserve banking to private interests. The people themselves deserve to retain that power within their own agencies.

>all of the profits from banking would rightly be allocated towards offsetting taxation or providing mobetta services. Like lower interest loans for home buyers etc. Low interest small business loans that directly stimulate econ growth.

But I am not surprised that 6 of the 7 banks that CA has deposited money into won't take the iou's. They aren't money, they aren't letters of credit or drafts or any kind of legal tender.

That problem would be solved with a state owned bank, the bank could issue drafts so long as it stayed within the bounds of banking rules and laws.

But on the flip side: If CA had the option of sucking dry a $170 billion nest egg, it would be spent by now and we would still have a budget shortfall. There would have to be safeguards to prevent the leg from tapping those resources for non emergency purposes.

LC, you are cutting out the middleman of the fractional reserve ripoff with this proposal. How in hell do you think a monopolistic civil service ripoff is better than a semi-competitive crony-capitalist rip-off? Allowing the banks to run loan brokerage funds as with CDs currently is one thing as long as the process is transparent it is the simplest way to get rid of the legalized fraud of fractional reserve banking. But turning loose the SEIU and other state unions to run CA into the ground even faster with a monopoly on bankster fraud is a worse idea than the current system. Do away with fractional reserve banking for public banking, don't monopolize the fraud.

 

[loosecannon]

I covered that Willie:

But on the flip side: If CA had the option of sucking dry a $170 billion nest egg, it would be spent by now and we would still have a budget shortfall. There would have to be safeguards to prevent the leg from tapping those resources for non emergency purposes.

Regardless a publicly held banking system that retains the power and profits of fractional reserve lending to the agencies of the people is the only viable course.

 

[rdean]

Gee, I hate to break the news to you guys. It's not just California losing jobs. Check out this interactive map of each state. You can see how many jobs Republicans sent to China from your state between 2001 to 2008.

The China Job Drain | Alliance for American Manufacturing

 

[georgephillip]

I covered that Willie:

But on the flip side: If CA had the option of sucking dry a $170 billion nest egg, it would be spent by now and we would still have a budget shortfall. There would have to be safeguards to prevent the leg from tapping those resources for non emergency purposes.

Regardless a publicly held banking system that retains the power and profits of fractional reserve lending to the agencies of the people is the only viable course.

One of the long-shot gubernatorial candidates in Florida's Democratic primary (Ph.D in Economics) made the claim a state bank in Florida could reduce and possibly eliminate local property taxes.

The would-be governor claimed his state's citizens would save $billions/year in interest currently going to Wall Street and their state bank could earn $billions helping them save.

2% mortgages.
Credit cards capped at 6%

I had a chance to ask a CA State Senator his opinion of state banks, and he responded by saying voters want less government not more.

This is why I strongly suspect Republicans AND Democrats need Wall Street everyday and they only need voters one day every two years.

 

[loosecannon]

I covered that Willie:

But on the flip side: If CA had the option of sucking dry a $170 billion nest egg, it would be spent by now and we would still have a budget shortfall. There would have to be safeguards to prevent the leg from tapping those resources for non emergency purposes.

Regardless a publicly held banking system that retains the power and profits of fractional reserve lending to the agencies of the people is the only viable course.

One of the long-shot gubernatorial candidates in Florida's Democratic primary (Ph.D in Economics) made the claim a state bank in Florida could reduce and possibly eliminate local property taxes.

The would-be governor claimed his state's citizens would save $billions/year in interest currently going to Wall Street and their state bank could earn $billions helping them save.

2% mortgages.
Credit cards capped at 6%

I had a chance to ask a CA State Senator his opinion of state banks, and he responded by saying voters want less government not more.

This is why I strongly suspect Republicans AND Democrats need Wall Street everyday and they only need voters one day every two years.

I would rep that twice if I could.

 

[william the wie]

Any compromise on fractional reserve banking as opposed to above board loan brokerage simply adds a set of Chaotic attractors to the economy that amplifies booms and busts to cause misery. Admittedly central banking with fiat currency as a more powerful amplifier is a bigger problem without a generator of signal such as fractional reserve banking it is pretty powerless.

 

[loosecannon]

I openly admit I have no idea what that means. But if you intend to roll back the lid on fractional reserve banking.....then you better have a pretty good plan to account for the need for a dynamic money supply.

Fractional reserve banking is an amazing tool. It affords both a mechanism to control the money supply and a profit motive to do so. And like capitalism it is somewhat self regulating.

It need not be wasted on privateers. It is good enough to be retained and cherished by the states or the federal government for the direct benefit of the citizens. Provided that abuse be prohibited.

 

[william the wie]

I openly admit I have no idea what that means. But if you intend to roll back the lid on fractional reserve banking.....then you better have a pretty good plan to account for the need for a dynamic money supply.

Fractional reserve banking is an amazing tool. It affords both a mechanism to control the money supply and a profit motive to do so. And like capitalism it is somewhat self regulating.

It need not be wasted on privateers. It is good enough to be retained and cherished by the states or the federal government for the direct benefit of the citizens. Provided that abuse be prohibited.

Fractional reserve banking is always a tool of fraud that leads to mis and dis investment. The only purpose it actually serves is currency debasement and fiat inflation. The idea that a dynamic (unstable) money supply is desirable destroys the idea that money is a storehouse of value thus destroying savings and therefore investment.

 

[loosecannon]

I openly admit I have no idea what that means. But if you intend to roll back the lid on fractional reserve banking.....then you better have a pretty good plan to account for the need for a dynamic money supply.

Fractional reserve banking is an amazing tool. It affords both a mechanism to control the money supply and a profit motive to do so. And like capitalism it is somewhat self regulating.

It need not be wasted on privateers. It is good enough to be retained and cherished by the states or the federal government for the direct benefit of the citizens. Provided that abuse be prohibited.

Fractional reserve banking is always a tool of fraud that leads to mis and dis investment. The only purpose it actually serves is currency debasement and fiat inflation. The idea that a dynamic (unstable) money supply is desirable destroys the idea that money is a storehouse of value thus destroying savings and therefore investment.

Hogwash. Monetarism is based on a profoundly true principle: that the economy is beholden to a growing money supply to expand. This is so well documented across millenia as to be beyond rebuttal.

So there must be a means to support a dynamic money supply to ballast economic growth.

Fractional reserve banking in the right hands is that ballast. Turned toward the benefit of the people of the nation everything falls into it's proper place.

 

[william the wie]

Absolute nonsense just google the rate of economic growth during the deflationary 1800s. Inflation simply leads to the growth of the financial sector as witness Weimar Germany. That's why the original monetarist Milton Friedman called for banks to be restricted to lending against treasuries and the replacement of the Fed with a computer and towards the end of his life called for its dissolution.

 

[loosecannon]

apples and oranges. The money supply can grow without inflation if the money supply is backed by something tangible and expanding, like RE values/mortgages.

Milton Friedman also expected that computer to continually increase the money supply:

Peter Robinson: So this is not like having a computer all set up to do it and all you have to do is push the button. This is complicated tricky business.

Milton Friedman: My computer set-up instead of the Fed would be for the long term purpose, and would eliminate all of this fine-tuning, we'd have none of this. We'd simply have the quantity of money go up regularly, day by day, week by week.

Uncommon Knowledge: THE ECONOMY'S NEW CLOTHES: Milton Friedman on the New Economy | Hoover Institution

 

[editec]

Giving control of the specie to private banks was a gigantic mistake.

Except of course, if you're an adherent to the theory that private bankers are more interested in the good health of commonweal than a representatative form of goverment.

I think this latest economic depression put the lie to the above theory rather nicely, though, does it not?

OTOH, there is absolutely no reason for any of us to expect that sooner or later the insiders of government aren't likely to also become parasites on the commonweal, either.

In fact, most cases of inflation stem from governments (or Kings) debasing the specie.

I suspect that statistic mostly has to do with the much longer history of monarchies controlling currency than representative forms of government.

The bottom line is power corrupts regardless of who has it, folks.

The powerful (in government OR the private sector) inevitably abuse their power for their own benefit.

 

[High_Gravity]

California still has the porn biz on lock.

 

[boedicca]

And then they all cry no jobs! I agree CA is NOT a business friendly state.

It used to be THE most business friendly state despite the highest costs of doing business, then in 2008 everything changed.

It began a lot longer ago than that. Try Willie Brown and company and Jerry Browns first governorship for the beginning.

Indeed. Gov. Moonbeam signed the legislation which enabled the Public Employee Takeover of the state. That is the proximate cause of the current tragedy.