Archive for the ‘Welfare State’ Category

Venezuela Runs Out of Money to Print Money

Thursday, April 28th, 2016

The Magic Power of Socialism™ has finally dragged Venezuela far enough down the slope that the economy is going to hell at an ever accelerating rate.

First and foremost, the country is so boned that they can’t even afford to print money anymore.

In a tale that highlights the chaos of unbridled inflation, Venezuela is scrambling to print new bills fast enough to keep up with the torrid pace of price increases. Most of the cash, like nearly everything else in the oil-exporting country, is imported. And with hard currency reserves sinking to critically low levels, the central bank is doling out payments so slowly to foreign providers that they are foregoing further business.

Venezuela, in other words, is now so broke that it may not have enough money to pay for its money.

Snip.

Last month, De La Rue, the world’s largest currency maker, sent a letter to the central bank complaining that it was owed $71 million and would inform its shareholders if the money were not forthcoming. The letter was leaked to a Venezuelan news website and confirmed by Bloomberg News.

“It’s an unprecedented case in history that a country with such high inflation cannot get new bills,” said Jose Guerra, an opposition law maker and former director of economic research at the central bank. Late last year, the central bank ordered more than 10 billion bank notes, surpassing the 7.6 billion the U.S. Federal Reserve requested this year for an economy many times the size of Venezuela’s.

When you run out of money to print money, perhaps you should take that as a sign the express train to you socialist paradise has permanently derailed.

As part of its ongoing economic collapse, Venezuela’s government is now going from a four-day workweek to a two day workweek. Given the bang-up job the socialists have done running the economy, I suspect that will hurt less than the shortages of food and toilet paper.

No wonder the people are flocking to sign a recall petition to oust socialist President Nicolas Maduro. But that’s not an easy road either:

His adversaries first need to collect nearly 200,000 signatures, representing 1% of the nation’s more than 19 million voters. The National Electoral Council, which is closely allied with the government, has 20 days to authenticate them. If that drive is successful, the opposition must then collect nearly four million signatures over three days before the end of the year to trigger an actual recall vote. To win that new election, they would have to garner more votes than the 7.5 million Mr. Maduro got in the 2013 election.

Typically this is the point (or long past it) where a third world nation’s military would declare “enough!” and depose El Presidente themselves. So far neither armed forces leader Vladimir Padrino Lopez nor National Guard leader Nestor Reverol have shown any signs of doing so…

(Hat tip: Ace of Spades HQ.)

“Greece, EU/IMF lenders resume talks over bailout reforms”

Monday, April 25th, 2016

That’s an actual headline today. I throw in “today” because that same headline could have been run just about any time over the past five years, because Greece is endlessly willing to talk as long as they keep getting bailout money.

The one thing they have proven absolutely unwilling to do is actually implement reforms, at least any reforms that would involve the government spending less money than it takes in. Instead they’ll ask for more debt write-downs, write-offs and haircuts for lenders rather than stop spending other people’s money.

And I could have written the preceding paragraph any time over the last five years or so as well…

LinkSwarm for April 1, 2016

Friday, April 1st, 2016

Happy April Fools day! No tricks here, just the usual Friday LinkSwarm:

  • ObamaCare didn’t do jack to lower costs. (Hat tip Instapundit.)
  • Indeed, Obamacare is the fail that keeps failing: “As a result of the ACA, between 4 million and 9 million fewer people are projected to have employment-based coverage each year from 2017 through 2026 than would have had such coverage if the ACA had never been enacted.” (Hat tip: Ace of Spades HQ.)
  • Great news! The Nigerian Army has rescued rescued 800 Boko Haram hostages. That’s compared to the number of those hostages rescued by the #BringBackOurGirls hashtag, which is (stops, counts, carries the one) Zero.
  • Bad news: They just kidnapped 300 more. (Hat tip: Weasel Zippers.)
  • Following the Brussels attack, the standard ruling class rituals of aversion are in full bloom.
  • Donald Trump suggested targeting the families of terrorists. Putin’s Russia does exactly that.
  • The Obama Administration treats Little Sisters of the Poor worse than Exxon, Visa and Pepsi, all of whom have health plans lacking the abortion mandate. Then again, as Instapundit noted: “To be fair, that was basically because they hate those groups and wanted to punish them.”
  • Xi Jinping has accumulated more power than any leader since Mao. “He has been fighting dissent with even more ruthlessness than he has been waging war on graft. Not since the dark days after the Tiananmen Square protests in 1989 has there been such a sweeping crackdown on critics of the party.”
  • Belgium’s current crises sounds an awful lot like where California is headed: Expensive government that’s congenitally incapable of solving problems.
  • Canadian bank depositors are now officially at risk of bail-ins.
  • David Brin says the Amendment that most protects the right of citizens to film interactions with the police is the Sixth.
  • Rob Ford was more than just a loud-mouth drunk. “Ford was a political pragmatist who simply didn’t give a damn what anyone thought about him other than his constituents. It was that gumption that endeared him to hundreds of thousands of Torontonians.”
  • Supergenius New Yorker writer thinks Arizona is next to Texas.

    Screen shot 2016-03-23 at 10.56.52 PM

    (Screen shot has been included because the article has been edited and no notice made of the deleted error.)

  • Illegal alien rapes 12-year old. (Hat tip: Director Blue.
  • Lake Travis hits full again.
  • Hulk Hogan may have just destroyed Gawker.” Well, we can only hope…
  • Lunatic hoplophobe associate professor of English calls 911 to report ROTC maneuvers on campus at the University of North Dakota. (Hat tip: Tam.)
  • Old and Busted: The Suicide Prevention Hotline. The New Hotness: The Suicide Encouragement Hotline. Not an April Fools joke, alas…
  • Why grackles love supermarket parking lots.
  • Texas vs. California Update for March 31, 2016

    Thursday, March 31st, 2016

    Lots of Texas vs. California linky goodness, much of it via Jack Dean at Pension Tsunami, who’s been emailing me links of significant interest.

  • Texas continues to grow:

    As last week’s US Census Bureau population estimates indicated, the story of population growth between 2014 and 2015 was largely about Texas, as it has been for the decade starting 2010 (See: “Texas Keeps Getting Bigger” The New Metropolitan Area Estimates). The same is largely true with respect to population trends in the nation’s largest counties, with The Lone Star state dominating both in the population growth and domestic migration among 135 counties with more than 500,000 population.

    Snip.

    Houston, which is the fastest growing major metropolitan area (over 1 million population) in the nation includes the two fastest growing large counties. Fort Bend County added 4.29 percent to its population between 2014 and 2015 and now has 716,000 residents. Montgomery County grew 3.57 percent to 538,000. In addition to these two suburban Houston counties, Harris County, the core County ranked 16th in growth, adding 2.03 percent to its population and exceeding 4.5 million population.

    Dallas-Fort Worth, the second fastest-growing major metropolitan area has two counties among the top 20. The third fastest-growing county is Denton (located north of Dallas-Fort Worth International Airport), which added 3.42 percent to its population over the past year and now has 781,000 residents. Collin County, to the north of Dallas County, grew 3.17 percent and now stands at 914,000 residents. Its current growth rate would put Collin County over 1 million population by the 2020 census.

    Travis County, with its county seat of Austin, grew 2.22 percent to 1,177,000 and ranked 12th. Bexar County, centered on San Antonio grew 2.01 percent and ranks 17th.

    Overall, Texas had four of the five fastest growing large counties, and seven of the top twenty. California had none. (Hat tip: Pension Tsunami.)

  • The Austin metropolitan area passes 2 million people.
  • The California Policy Center has a devestating roundup of what’s wrong with California’s economy. To wit:
    • “A now has by far the nation’s highest state income tax rate. We are 34% higher than 2nd place Oregon, and a heck of a lot higher than all the rest”

    • “CA has the highest state sales tax rate in the nation. 7.5% (does not include local sales taxes).”
    • “California in 2015 ranked 14th highest in per capita property taxes (including commercial) – the only major tax where we are not in the worst ten states. But the 2014 average CA single-family residence (SFR) property tax is the 8th highest state in the nation. Indeed, the median CA homeowner property tax bill is 93% higher than the average for the other 49 states.”
    • “California has a nasty anti-small business $800 minimum corporate income tax, even if no profit is earned, and even for many nonprofits. Next highest state is Rhode Island at $500 (only for “C” corporations). 3rd is Delaware at $175. Most states are at zero.”
    • “California’s 2015 ‘business tax climate’ ranks 3rd worst in the nation – behind New York and anchor-clanker New Jersey. In addition, CA has a lock on the worst rank in the Small Business Tax Index – a whopping 8.3% worse than 2nd worst state.”
    • “The American Tort Reform Foundation in 2015 again ranks CA the ‘worst state judicial hellhole’ in U.S. – the most anti-business.”
    • “CA public school teachers the 3rd highest paid in the nation. CA students rank 48th in math achievement, 49th in reading.”
    • “California’s real poverty rate (the new census bureau standard adjusted for COL) is easily the worst in the nation at 23.4%. We are 57.3% higher than the average for the other 49 states.”
    • “Of 100 U.S. real estate markets, in 2013 CA contained by far the least affordable middle class housing market (San Francisco). PLUS the 2nd, 3rd, 5th, 6th and 7th.”

    It’s like a whole bunch of Texas vs. California roundup statistics all in one big green ball of fail. Read the whole thing. (Hat tip: Pension Tsunami.)

  • “California’s 50% [minimum wage] increase would eliminate nearly 700,000 jobs—which means higher unemployment for the poor and least skilled in particular.”
  • Why did Carl’s Jr. flee California? Taxes, regulations and lawsuits.

    CKE Restaurants CEO Andy Puzder told the Wall Street Journal in 2013, “California is not interested in having businesses grow.”

    The article points out that many factors, including local building regulations, make one community less desirable than another for businesses.

    For example, it takes 60 days in Texas, 63 in Shanghai, and 125 in Novosibirsk, Russia for one of CKE’s restaurants to get a building permit after signing a lease. But in Los Angeles, Ca. it takes a whopping 285 days.

    Puzder added, “I can open up a restaurant faster on Karl Marx Prospect in Siberia than on Carl Karcher Boulevard in California.” The street in California is ironically named for the restaurant chain’s founder.

    California’s labor regulations may also play a role in a company’s desire to seek alternative locations. In that same interview with WSJ, Puzder said his company had spent $20 million in the state over the past eight years on damages and attorney fees related to class-action lawsuits.

    (Hat tip: Pension Tsunami.)

  • Justice Scalia’s death dooms the Friedrichs vs. California Teacher’s Association lawsuit.
  • “If a Stanford Institute for Economic Policy Research’s estimate is accurate, public pension debt in California is even worse than feared. Preliminary calculations from a forthcoming SIEPR study peg the unfunded retirement tab for state and local government employees at more than $1.2 trillion.” (Hat tip: Pension Tsunami.)
  • Texas unemployment rates drops to 4.4%.
  • San Bernardino’s bondholders get screwed so the bankrupt city can continue sending money to CalPERS. (Hat tip: Pension Tsunami.)
  • California’s colleges are so money-hungry they’re screwing in-state students out of admissions so they can charge more to out-of-state applicants, including those who wouldn’t normally be able to get in. Sort of like the UT admissions scandal, but less politically connected and more widespread and money-grubbing… (Hat tip: Instapundit.)
  • But there’s one type of student California admissions isn’t keeping out: antisemites. (Hat tip: Director Blue.)
  • Even the supposed beneficiaries of California’s high speed rail fantasy have become disillusioned with it.
  • A hot relocation to Texas rumor just in: “Plano – new home of Toyota Motor’s North American headquarters – has been mentioned as a possible relocation site for a Wichita-based subsidiary of conglomerate Cargill.”
  • Texas vs. California Update for March 24, 2016

    Thursday, March 24th, 2016

    Time for another Texas vs. California update:

  • California’s underfunded pension debts put it $175.1 billion in the red. “More than 51 percent ($89.9 billion) of the negative $175.1 billion consists of unfunded, employee-related, long-term liabilities.” (Hat tip: Pension Tsunami.)
  • A initiative to hike California’s minimum wage to $15 an hour has made the ballot. Also known as the “Send as much business as possible to Texas” act.
  • Speaking of which, Texas’ unemployment rate fell to 4.5% in January.
  • Germany and Sweden have lower median incomes than Texas. Indeed, were Germany and Sweden to join the union, they would instantly be among the poorest states.
  • Big Government advocates in California are fighting to renew a “temporary tax” on all those millionaires earning $250,000 or more a year. “The extension measure is again supported by the California Teachers Association and Service Employees International Union.”
  • California traffic fines have turned into a huge tax on the poor. “California is filled with people who are one traffic ticket away from losing their means of independent transportation. They get a ticket for a busted taillight or a small-change moving violation. On paper, the fine is $100, but with surcharges, it adds up to a lot more.” Which is why they’re having an amnesty to pay a reduced rate on outstanding tickets. But there’s a catch: “The practice of throwing in extra sources of revenue is so ingrained in Sacramento that there is a $50 amnesty program fee.” (Hat tip: Instapundit.)
  • Fresno’s pension system “is the only public pension program in California – and one of only a few in the United States – that has a surplus instead of unfunded pension liabilities.” (Hat tip: Pension Tsunami.)
  • “When unfunded pension, medical and other liabilities are formally included on its balance sheet, the [Orange County] Fire Authority’s debts exceeded its assets by $169 million for the fiscal year that ended in June,” the Register’s OC Watchdog wrote. “That’s a plunge of more than 680 percent in its ‘net position,’ or more than $420 million, over a single year.” (Hat tip: Pension Tsunami.)
  • California has a problem cutting pensions even when they’re going to convicted felons. (Hat tip: Pension Tsunami.)
  • Assisted suicide becomes legal in California June 9.
  • How long will California continue to consider itself part of the United States? (Hat tip: Ed Driscoll at Instapundit.)
  • Over 200 BART employees earned over $200,000 a year in total compensation.
  • California’s already long-delayed and already over-budget high speed rail fantasy is planning to put much of the initial segment underground due to community and environmental concerns. Problem: Digging those tunnels will probably cost $1 billion a mile.
  • California short-hauler Total Transportation Services Inc. files for bankruptcy.
  • “The parent company of Carl’s Jr., founded in Anaheim 60 years ago, is relocating its California headquarters to Nashville, Tenn.”
  • Kohl’s is closing nine stores in California, out of 18 total closing nationwide (none in Texas).
  • On the other hand, Sports Authority is closing slightly more stores in Texas (24) than California (19). Meh. I liked the stores more when they were Oshman’s…
  • California’s Quantum Fuel Systems Technologies Worldwide Inc., which manufactures and sells fuel systems and storage tanks for vehicles fitted for compressed natural gas, filed for bankruptcy. The fact the company has already gone through two reverse splits suggests long-running troubles…
  • Of course, being in Texas won’t prevent some municipalities of spending like they’re in California: San Antonio to spend almost $100,000 on a toilet.
  • Likewise, Houston’s credit rating been downgraded by both Moody’s and Standard & Poor’s due to “the city’s large unfunded pension liability.” Maybe former Houston Mayor Annise Parker should have spent more time on trimming expenses and fixing crummy surface streets than suing churches and tranny bathrooms…
  • LinkSwarm for March 11, 2016

    Friday, March 11th, 2016

    Here in Texas it’s rained every day this week, resulting in flooding along the Sabine. Try to stay dry and enjoy this complimentary Friday LinkSwarm:

  • Ted Cruz pegs the meter with this comment. (Hat tip: Conservatives 4 Ted Cruz.)
  • GOP squishes finally start backing Cruz as only way to stop Donald Trump.
  • Could our FBI director actually be doing his job, without fear or favor?
  • In related news: Could Hillary Clinton’s grand jury already be empaneled? (Hat tip: Director Blue.)
  • “Marco Rubio is a horrible failure.”
  • There have been adultery accusations popping up on Rubio’s campaign trail, which doesn’t necessarily mean anything. However, I was surprised to read they date back to at least 2010.
  • Failed ObamaCare co-ops haven’t repaid $1.2 billion in taxpayer loans.
  • Think California is boned? Europe’s pension crisis is even worse:

    Europe’s population of pensioners, already the largest in the world, continues to grow. Looking at Europeans 65 or older who aren’t working, there are 42 for every 100 workers, and this will rise to 65 per 100 by 2060, the European Union’s data agency says. By comparison, the U.S. has 24 nonworking people 65 or over per 100 workers, says the Bureau of Labor Statistics, which doesn’t have a projection for 2060.

    Also this:

    The global decline of the blue model stands to inflict even more pain on Europe than on the United States. Europeans are worse at making babies than the United States, worse at integrating immigrants, worse at saving money to pay boomer retirement bills—but no worse at making promises to voters that they will be unable to keep.

    (Hat tip: Pension Tsunami.)

  • “Venezuela’s accelerating economic meltdown is rapidly turning into a full-fledged humanitarian crisis. For too many in that country, the pervasive shortages of food, medicine, electricity, and other basic goods are making everyday life a nightmare.”
  • How “liberation theology” was designed and run from Moscow.
  • Differences between Christian and Islamic eschatology.
  • If you have trouble firing handguns, you may find this gripping reading. (Hat tip: Stuff from Hsoi.)
  • “UC-Berkeley Law School Dean Resigns After Being Sued For Sexual Harassment.” (Hat tip: Instapundit, who asks “Why are leftist institutions such cesspits of sexual predation?”)
  • “The San Francisco Chronicle used to give out firearms as subscription premiums.”
  • Another Adobe Flash vulnerability in the wild.
  • It begins.
  • Inside Tokyo’s Nakagin Capsule Tower, the only remnant of a “Metabolist future” that failed.
  • Mr. T. says goodbye to Nancy Reagan.
  • Texas vs. California Update for February 25, 2016

    Thursday, February 25th, 2016

    Been too long since I did a Texas vs. California roundup, so here it is:

  • Dark Age California:

    There are large areas of Central California that resemble life in rural Mexico. Within a radius of five miles I can go to stores and restaurants where English is rarely spoken and there is no racial or cultural diversity—a far cry from Jeb Bush’s notion of an “act of love” landscape.

    With unemployment at 10% or more in the interior of the state, with the public schools near the bottom in the nation, and with generous entitlements, it is no accident that one in six in the nation who receive public assistance now live in California, where about a fifth of the population lives below the poverty line.

    One in four Californians also were not born in the United States; more than one in four who enter the hospital for any cause are found upon admittance to suffer from Type II diabetes. The unspoken responsibility of California state government is to bring state-sponsored parity to new arrivals from Oaxaca, and to do so in ideological fashion that ensures open borders and more government. It is the work of a sort of secular church, and questioning its premises is career-ending blasphemy.

  • “California has come a long way to dig itself out of budget deficits, but the state remains on shaky ground due to nearly $400 billion in unfunded liabilities and debt from public pensions, retiree health care and bonds.” More: “It’s California’s debt and liabilities that are concerning financial analysts, particularly the state’s rapidly growing unfunded retiree health care costs, which grew more than 80 percent over the past decade. California has promised $74 billion more in health and dental benefits to current and retired state workers than the state has put aside.” (Hat tip: CalWatchdog.)
  • And new accounting rules make those unfunded liabilities harder to ignore.
  • The problem might not be quite as bad as it is did not CalPERS and CalSTARS insist on politically correct investments. (Hat tip: Pension Tsunami.)
  • San Francisco political officials indicted:

    A retired city employee and a former city commissioner who are at the center of bribery allegations involving Mayor Ed Lee were charged with multiple felonies including bribery and money laundering, San Francisco District Attorney George Gascon announced at a news conference Friday afternoon.

    Also charged Friday was political consultant and former San Francisco Unified School District Board of Education President Keith Jackson, who pleaded guilty last year to racketeering charges.

    The district attorney’s office charged recently retired Human Rights Commission employee Zula Jones, ex-HRC commissioner Nazly Mohajer and former political consultant Keith Jackson.

    Remember that Zula Jones and Nazly Mohajer were fingered by Leeland Yee’s attorneys as being the go-betweens for bribing Lee. This brings up the question (yet again): Why hasn’t Lee himself been indicted?

  • And speaking of California government officials being indicted: “Retired Los Angeles County Sheriff Lee Baca pleaded guilty Wednesday to lying to federal investigators, a stunning reversal for the longtime law enforcement leader who for years insisted he played no role in the misconduct that tarnished his agency.” (Hat tip: Dwight.)
  • Jerry Brown vetoes kangaroo court minimums for college sexual assault cases.
  • “Brown pushed for the giant pension fund CalPERS to lower its assumed investment return from 7.5% to 6.5%. Given that the world is headed towards deflation and that CalPERS earned only 2.4% for the fiscal year ended June 30, 2015, Brown’s request seemed entirely reasonable. Instead, the board approved a staff proposal to move to the 6.5% target over 10 years.” (Hat tip: Pension Tsunami.)
  • CalPERS board President Rob Feckner, serving his twelfth term, casts deciding vote against proposal for term limits for board members. “Feckner was president of the California School Employees Association for four years and executive vice president of the California Labor Federation for five. Such a conflict of interest wouldn’t be tolerated with the president of other boards of directors. But with CalPERS, it’s par for the course.” (Hat tip: Pension Tsunami.)
  • San Diego voters: We want pension reform! Union-stacked Public Employment Relations Board (PERB): Get stuffed, peasants! Result: Lawsuit. (Hat tip: Pension Tsunami.)
  • The middle class is fleeing California. “In 2006, 38 percent of middle-class households in California used more than 30 percent of their income to cover rent. Today, that figure is over 53 percent.”
  • California tech industries continue their exodus to Texas:

    The tech industry in the Bay Area has become a victim of its own success – and state policies. Like many other California businesses, tech firms are relocating or expanding operations in others states – particularly Texas – at an alarming rate.

    Some companies spend significant amounts of time and money finding and training the right workers, only to see them poached by a flashy startup within a number of months. The need for a more stable workforce was one of the main reasons cloud-computing company LiveOps Cloud moved from Silicon Valley to a suburb of Austin, Texas, CEO Vasili Triant told the San Francisco Chronicle.

    Other reasons to move or expand out-of-state are government-created: high taxes, burdensome regulations, unaffordable housing due to excessive development fees and restrictive land-use policies. California’s highly-educated workforce is not so unique anymore, and its quality of life has been tarnished by regulatory and affordability issues. Texas, by contrast, has no personal income tax and no corporate income tax (though it does have a less-onerous gross margins tax), and is universally hailed for having one of the friendliest business climates in the nation.

    Google, Facebook, Apple, Dropbox, Oracle and nearly two dozen other Bay Area tech companies have all built or expanded facilities in Texas just since 2014, the Chronicle reported. There have been more than 1,500 publicly reported California “disinvestment events” across all industries over the past seven years, according to a November report from Spectrum Location Solutions, an Irvine-based business relocation consulting firm, although it estimated the actual tally at as high as 9,000. A California business “can save 20 percent to 32 percent of labor costs by relocating a facility out of state,” Spectrum president Joe Vranich told us last year.

  • More on the theme:

    Between 1997 and 2000, during the peak of the dot-com boom, the Bay Area was a net importer of Texans: About 1,500 more households moved into the region from Texas than vice versa, bringing an additional $191 million (2015 dollars) in taxable income into the region, according to IRS data, which tracks the movement of taxpaying residents.

    The trend changed in the early 2000s, and Texas has been a net importer of Bay Area households ever since. Between 2009 and 2012, as the recession was winding down and the second tech boom was revving up, the region lost about 1,430 households to Texas, and nearly $390 million in taxable income.

    Snip.

    I had a guy working for me (in the Bay Area) making $200,000 a year, struggling to pay his bills,” company CEO Triant said. “In lots of places in the country you’re living high on the hog on $200,000. … As far as work life balance and employee morale, we have absolutely seen a remarkable increase since moving here; it’s night and day.”

    The firm still keeps a small Bay Area office, and Triant speaks fondly of his hometown of San Diego and California in general.

    But when it comes to building a company and running a business, he has found a new home in Texas. “I want my employees to be able to have a good quality of life, live in a city with low crime rates, good schools,” he said. “And that’s what we’re doing here.”

  • “It’s no coincidence that Texas and Florida have thrived while New York and California have not. High levels of taxes, spending, and regulations make it more difficult for entrepreneurs to be successful. When entrepreneurs cannot expand their businesses and hire new workers, everyone is hurt, not just the rich.”
  • In the course of verifying a Rep. Joe Straus campaign ad, Polifact confirms that Texas has grown twice as fast as the rest of the country.
  • The University of California, Berkeley, is running a $150 million deficit this year. (Hat tip: Pension Tsunami.)
  • UC Academic Senate rejects task force’s proposed retirement benefits plan that, keeping with Jerry Brown’s modest pension reforms, would pay them a measly $117,020 pension benefit. (Hat tip: Pension Tsunami.)
  • “What’s more important: High-speed rail or water? Proponents of a proposed ballot measure would force voters to choose just that. The measure would redirect $8 billion in unsold high-speed rail bonds and $2.7 billion from the 2014 water bond to fund new water storage projects.”
  • Speaking of water restrictions, looks like Californians will get to enjoy them for another year.
  • Sure, Covered California (California’s ObamaCare) may be incompetent. But it’s also corrupt. The state auditor “criticized the exchange for not sufficiently justifying its decision to award a number of large contracts without subjecting the contractors to competitive bidding.”
  • California is releasing many felons as part of a “mass forgiveness” program. Including a murderer who tied up a husband and wife and beat them to death with a pipe.
  • California adds Aloe Vera to list of cancer-causing substances. “The problem is that the 800+ chemicals listed in Proposition 65 are not devised to protect consumers, but rather serve as a cash cow for private trial lawyers to sue small business and reap the hefty settlement payout. Since 1986, nearly 20,000 lawsuits have been filed, adding up to over half a billion dollars in settlement payments by business owners.” (Hat tip: Ed Driscoll at Instapundit.)
  • San Francisco’s planning process is designed for gridlock.
  • Bankrupt San Bernardino has reached a settlement with its firefighters union.
  • Heh. “The movement to emblazon state legislators with the logos of their donors has collected tens of thousands of signatures for its would-be ballot initiative.The measure, formally called the ‘Name All Sponsors California Accountability Reform (or NASCAR. Get it?) Initiative,’ would require all state legislators to wear the emblems or names of their 10 top donors every time they attend an official function.” The ballot initiative has already collected 40,000 signatures…
  • Huge soda pop collection is coming to the Dr Pepper museum in Waco.
  • LinkSwarm for February 8, 2016

    Monday, February 8th, 2016

    I emptied the link bucket on Friday, but lo and behold, a whole new torrent of news has come rushing down the pipes:

  • You know all that “Ted Cruz is too unpopular to win” talk? Cruz is killing it with blue collar voters:

    According to entrance polling, among the roughly half of all Republican voters without a college degree, Cruz won 30 percent of the vote, eclipsing Trump’s 28 percent. Marco Rubio was a distant third, winning the support of just 17 percent of voters without college degrees. Cruz did 5 points better among voters without college degrees than among college grads (30 percent to 25 percent), while, among all candidates included in the entrance polling (Cruz, Trump, Rubio, Ben Carson, Hillary Clinton, and Bernie Sanders), Rubio was the candidate who had the lowest portion of his support come from those without college degrees—he did 10 points worse among voters without college degrees than among college grads (17 to 27 percent).

    According to the entrance polling, Cruz also fared better than Trump or Rubio among younger voters. Among voters under the age of 30, Cruz won 26 percent of the vote to Rubio’s 23 percent and Trump’s 20 percent. Among voters in their 30s and early 40s, Cruz won 30 percent of the vote to Trump’s 23 percent and Rubio’s 21 percent. (Meanwhile, on the Democratic side, Hillary Clinton got clobbered among younger voters, winning less than 30 percent of the vote among those under the age of 45.)

  • “A couple of days ago on the ONT we were reminded that Ted Cruz is only five months older than Marco Rubio. That’s one month for every case he’s won before the Supreme Court. So don’t let anyone tell you Cruz has no accomplishments.”
  • Five New Hampshire state reps who backed Rand Paul are now supporting Cruz.
  • Des Moines Register: “What happened Monday night at the Democratic caucuses was a debacle, period. Democracy, particularly at the local party level, can be slow, messy and obscure. But the refusal to undergo scrutiny or allow for an appeal reeks of autocracy.”
  • At least one Iowa delegate was unilaterally changed from Bernie Sanders to Hillary Clinton.
  • Hillary Clinton’s minions push polling Democrats in Nevada.
  • Hillary is bad at faking sincerity.
  • Gee, look how tremendously unpopular the name “Hillary” became after 1992.
  • “Marco Rubio Is Diminished by a Caustic Chris Christie.”
  • If you’re an Iraqi “refugee” who hasn’t had sex in months, do you: A.) Hire a prostitute, B.) Wank to porn, or C.) Rape a 10 year old boy in a public pool?
  • Meanwhile, in Belgium, seven men (including five “migrants”) danced and sang in Arabic as the took turns raping an unconscious 17 year old girl.
  • UK Muslim rape gang sentenced to collective 140 years in prison for raping a schoolgirl.
  • “In the Safe Spaces on Campus, No Jews Allowed.”
  • Obama Administration reinstates “catch and release” for illegal aliens. (Hat tip: Doug Ross.)
  • First confirmed case of Zika virus in Travis County. It’s funny how, just as with Enterovirus D-68, novel pathogens have a habit of showing up just when illegal alien populations do…
  • The effects of immigration on unemployment: “None of the net gain in employment over the entire 14-year period went to natives.”
  • The world’s most miserable economies: Socialist paradise Venezuela ranks first (which is to say last), followed by Argentina, South Africa, Greece and Ukraine. (Hat tip: NRO’s The Corner.)
  • Welfare mom complains about the free food and room service. (Hat tip: Doug Ross.)
  • Cherokee artist arrested for not being a real Cherokee artist. I look forward to the coming felony indictment of Elizabeth Warren…
  • For fans of the art of newspaper headline writing: “Former London Zoo meerkat expert fined for glassing monkey-handler in row over llama-keeper.”
  • Venezuela’s Economy Burns

    Thursday, February 4th, 2016

    While one of the two leading Democratic contenders for President openly calls for socialism, let’s check in on how one socialist paradise is doing:

    The only question now is whether Venezuela’s government or economy will completely collapse first.

    The key word there is “completely.” Both are well into their death throes. Indeed, Venezuela’s ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it’s hard to see that getting any better for them any time soon — or ever. Incumbents, after all, don’t tend to do too well when, according to the International Monetary Fund, their economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It’s no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.

    Inflation has gotten so bad that Venezuelans are now paying more than 1000 bolivars to the dollar on the black market. Which is why the government is flying in planeloads of money. As P. J. O’Rouke said of similar hyperinflation in Nicaragua’s own socialist paradise economy: “You have to go to Moscow University two or three times to make money worth this little.”

    But with the opposition party having defeated the socialists in parliamentary elections, they can turn things around, right? Well…

    Socialist president Nicolas Maduro has changed the law so the opposition-controlled National Assembly can’t remove the central bank governor or appoint a new one. Not only that, but Maduro has picked someone who doesn’t even believe there’s such a thing as inflation to be the country’s economic czar. “When a person goes to a shop and finds that prices have gone up,” the new minister wrote, “they are not in the presence of ‘inflation,’ ” but rather “parasitic” businesses that are trying to push up profits as much as possible. According to this — let me be clear — “theory,” printing too much money never causes inflation. And so Venezuela will continue to do so. If past hyperinflations are any guide, this will keep going until Venezuela can’t even afford to run its printing presses anymore — unless Maduro gets kicked out first.

    But for now, at least, a specter is haunting Venezuela — the specter of failed economic policies.

    Philip K. Dick once noted that reality is that which, if you ignore it, doesn’t go away. Socialists may not believe in hyperinflation, but hyperinflation very much believes in socialism…

    Texas vs. California Update for January 19, 2016

    Tuesday, January 19th, 2016

    Been a while since I did a Texas vs. California update, due to Reasons, so here’s one:

  • Texas ranks as the third freest state in the union, behind New Hampshire and South Dakota. California ranks second to last, just ahead of Massachusetts.
  • Texas added 16,300 Jobs in November.
  • How’s this for heavy-handed symbolism? California’s legislature plans to close one of its doors to the public, but continue to allow access to lobbyists. Because you’ve always got to see your real boss when he comes around…
  • California’s unfunded liabilities for CalPERS and CalSTARS spiked by $24 billion is fiscal 2014/2015. (Hat tip: Pension Tsunami.)
  • The much ballyhooed pension reform plan won’t make it on the ballot this year. Supporters are now aiming for 2018. Who knows how broke California will be by then… (Hat tip: Pension Tsunami.)
  • That’s probably because the game is rigged against pension reform. (Hat tip: Pension Tsunami.)
  • Jerry Brown unveils a budget in California. The budget increases are relatively modest, by California standards, but $2 billion into the rainy day fund isn’t even remotely going to cover California’s huge unfunded pension gap, and most of the structural bloat in the budget remains.
  • More on the same theme:

    While all the numbers are constantly in flux, in 2014-15, the California Public Employees’ Retirement System saw its status fall from 76.3 percent funded to 73.3 percent, likely due to the fact that investment returns fell far below expectations. The long-neglected California State Teachers’ Retirement System, as of June 30, 2014, was 69 percent funded. Combined, the systems report unfunded pension promises of more than $160 billion.

    The current budget shows steep and consistent increases in state funding to the two systems. Whereas CalPERS is set to receive $4.3 billion in state contributions in the 2015-16 fiscal year, which ends June 30, it could receive $4.8 billion the following year. CalSTRS is to receive $1.9 billion this year and about $2.47 billion next year.

    In comparison, CalPERS and CalSTRS received $3.1 billion and $1.26 billion, respectively, in 2011-2012.

    While it is perfectly reasonable for costs to rise over time, the rate that costs have risen for the two giant pension funds is mainly a consequence of California trying to play catch-up for years of inadequate forecasting and planning, aggravated by investment losses. But because the pension systems are run for public employees – CalPERS’ board is full of former public employee union leaders – the necessary changes and adjustments have been made far too late to avoid calamity.

    (Hat tip: Pension Tsunami.)

  • On the actual mechanics of pension reform, and the impossibility implementing them at the state level in California. (Hat tip: Pension Tsunami.)
  • Part 2, examining the possibility of reform at the local level. (Ditto.)
  • “California government, however, serves one purpose. It always reminds America what not to do.” Also:

    California has given us three new truths about government.

    One, the higher that taxes rise, the worse state services become.

    Two, the worse a natural disaster hits, the more the state contributes to its havoc.

    And three, the more existential the problem, the more the state ignores it.

    California somehow has managed to have the fourth-highest gas taxes in the nation, yet its roads are rated 44th among the 50 states. Nearly 70 percent of California roads are considered to be in poor or mediocre condition by the state senate. In response, the state legislature naturally wants to raise gas taxes, with one proposal calling for an increase of 12 cents per gallon, which would give California the highest gas taxes in the nation.

  • Federal judge rejects San Bernardino’s bankruptcy proposal, saying it doesn’t contain enough information.
  • Sacramento continues to ignore the needs of rural residents. (Hat tip: Ed Driscoll at Instapundit.)
  • Half of California’s driver’s licenses are issued to illegal aliens.
  • After years at the top of the relocation list, Texas was only the 9th biggest relocation destination in 2015.
  • On the other hand, Texas was still the top destination according to Allied Van Lines.
  • But businesses continue to flee California:

    In California, costs to run a business are higher than in other states and nations largely due to the states tax and regulatory policies and the business climate shows little chance of improving. It is understandable that from 2008 through 2015, at least 1,687 California disinvestment events occurred, a count that reflects only those that became public knowledge. Experts in site selection generally agree that at least five events fail to become public knowledge for every one that does. Thus it is reasonable to conclude that a minimum of 10,000 California disinvestment events have occurred during that period….For about 40 years California has been viewed as a state in which it is difficult to do business. Gov. Jerry Brown’s Administration’s less than candid approach regarding the business climate has misled the Legislature, the news media and the public about the flight of capital, facilities and jobs to other states and nations.

    The study also shows that Texas had the most new facilities opening up in the nation in 2014, with 689. California, despite being the most populous state, tied for 12th with 170.

  • 85% of Marin County’s special district workers collected over $100,000.” Bonus: Their pensions are underfunded too. (Hat tip: Pension Tsunami.)
  • Troubled California Wine Retailer Files for Bankruptcy. Premier Cru owes customers almost $70 million for wines it never delivered.”
  • This county-by-county breakdown of recession recovery is full of (very slow loading) data, and I haven’t come close to digesting it yet.