The State of California is out with its June budgetary data and fiscal year-end data, as well.
Given higher tax rates and accelerated withholding tax maneuvers, I cannot directly compare June 2010 to June 2009. The best that can be said is that given shrunken estimates, the State appears to be living in reality, but---there is a huge whole in the deficit that is being met by internal borrowing:
The State’s operating cash deficit stands at $9.9
billion (Table 3), and is being covered with
Source: Controller's office, to view click HERE and see page 3 for documentation and the entire document for further information.
Given massive debt loads and deficit operations, there is no easy way for anyone to verify that the U. S. of A. as a financially integrated agency is, net, profitable. The travails of California raise the disturbing possibility that perhaps the entire economy truly has a Ponzi-pyramid scheme underpinning rather than a solidly profitable business model.
As with Martia the shapeshifter in Star Trek VI, the financial powers-that-be keep moving the peas between different shells. I don't know, but where things are overly complicated, I'm suspicious. That fits the American financial scene to a T.
At least California is, in a fairly straightforward way, relatively bankrupt; but states cannot declare bankruptcy per se, so it is borrowing from itself. Confusing enough, but clear as the proverbial bell compared to what continues to go on in Big Finance.
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