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May 14, 2009

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Feds to Guarantee California Overspending?

News reports are saying there is a move afoot to have the federal government guarantee California’s debt, and enable the state to just keep borrowing and spending money that it doesn’t have.

California’s cash crunch appears ready to land on the steps of the U.S. Capitol.

In coming weeks, Congress is expected to debate whether to take the unprecedented step of guaranteeing the state’s emergency borrowing on a short-term basis.

This is equivalent to giving a 16-year-old boy a bottle of tequila and the keys to a Jaguar and saying “have a fun time.”

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  • http://www.georgerebane.com George Rebane

    No one should think for a moment that such a loan guarantee will not remove the last vestiges of constitutionally prescribed states’ rights from California, or any state which needs such a rescue from its financial fiasco. With bayonet and printing press, the federal monolith just continues to grow and concentrate power in DC.

  • http://www.aaronklein.com Aaron Klein

    This federal government certainly understands that other Golden Rule: “he who holds the gold makes the rules.” Well put, George.

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