California's budget surpluses (Davis: credit rating, loan, how much)

[Tulemutt]

Originally Posted by TR95

I agree there was no other option, but still plenty people still supporting the Greaser. I’m an independent just like you. Left the Pres vote blank on my 2016 ballot. Hoping one of the three B’s can secure the Dem Pres nomination, and I can tell you one of those B’s is sure not the Bern man who will have the lower income people paying greater than a 50% tax rate to fund his preposterous Medicare For All when our country can’t get Medicare right for those 65 and older. But hey have at it Bernie and Warren. I’d almost want to see the fiasco they’d create by being elected. Similar to our current fiasco just in a different way.

Who are the “three B’s” now Beto is out? Biden, Bloomberg, Booker? Have you considered the far end of the alphabet, Yang? I am watching him a lot. Seems to appeal to a broad electorate including former Trump and Bernie supporters. “Not right, not left ... forward”, etc.

[TR95]

Originally Posted by Tulemutt

Who are the “three B’s” now Beto is out? Biden, Bloomberg, Booker? Have you considered the far end of the alphabet, Yang? I am watching him a lot. Seems to appeal to a broad electorate including former Trump and Bernie supporters. “Not right, not left ... forward”, etc.

Butegieg, Bloomberg and Biden, but I forgot about Booker. Don’t think Yang has a chance, but could be a potential if he makes it to the Ca primary.

[Tulemutt]

Originally Posted by TR95

Butegieg, Bloomberg and Biden, but I forgot about Booker. Don’t think Yang has a chance, but could be a potential if he makes it to the Ca primary.

Oh right. How obvious ... heh that I’d space out Buttigeig.

Yang is an interesting one for sure. The only candidate that strikes me as looking past partisan bulls**t to focus on 21st century problems, as he puts it. I haven’t decided he’s my choice yet, but I needed a new ballcap so I got one of his MATH hats. A lot of fun to wear. Peope strike up conversations nearly everyday a couple times over it. Most start by them asking if I’m good with numbers . When I explain (I don’t always bother), I get friendly “oh right, that Chinese guy ... kinda interesting”, etc. No one has attacked me yet.

[NJ Brazen_3133]

Originally Posted by Tulemutt

I don’t mind your interest in California ... But I’m curious what it’s based on? You thinking of moving west?

I am like everyone else, I wish I can live in California comfortably. The girl of my dreams is also living in California

Originally Posted by Ruth4Truth

You can thank Jerry Brown for that.

CA will need to surplus to cover state worker's retirement pensions, among other things.

Originally Posted by mysticaltyger

Correct.

The surpluses are pretty modest when compared with the liabilities of maintaining infrastructure and covering pensions. Not to mention the fact that we need to be prepared for the next recession, which will happen at some point. Right now, we're not well prepared for it.

California's bond rating was only recently upgraded to AA by 2 of the 3 major ratings agencies. That's good, but it's nothing to brag about, since most states are rated AA or higher (the 3rd highest rating).

So we still have a lot of work to do on the financial front.

Arent expenses supposed to be calculated into equation to give you a surplus?

In other words if you have more expenses, then one shouldnt claim a surplus. You pay your expenses first.

[Woody01]

Originally Posted by NJ Brazen_3133

Arent expenses supposed to be calculated into equation to give you a surplus?

In other words if you have more expenses, then one cannot claim a surplus.

This is CA were're talking about. That would make them look bad. It's amazing how many people crow about the surplus and 5th largest economy and then get a blank look when you mention debt....

[NJ Brazen_3133]

Originally Posted by Mr5150

You will have to excuse me perceiving this as yet another CA bashing thread. As a side note, the stuff about teachers is made up, unless you are talking about AZ.

Your perception is incorrect. I like California. I want to move closer.

Originally Posted by Woody01

^^^ Yep...

From The OC Register:

"A large budget surplus provides a grossly incomplete picture of the fiscal health of a state, city or county. A budget is more like an income statement. The revenues exceeding expenditures in any given year do not reflect liabilities in the way that a balance sheet would. For example, if a family sees an increase in take-home pay because mom or dad got a raise, that obviously has a positive effect on the family budget. But if they are still losing ground every month because of a big mortgage that they can’t afford, one can’t conclude that the family is financially stable."

But the Federal Gov't has a much larger debt you say.....

"The problem for California is that, unlike the federal government, it can’t print money. One estimate of total government debt for California exceeds a trillion dollars. Even if that estimate is at the high end, there is no disputing that, sooner or later, we will have to satisfy all the legally binding promises our political leaders have made to various interests. This includes all bond holders and, of course, all the public employee retirees who are the beneficiaries of some of the most generous pension plans in the nation."

Current debt is estimated at a minimum of $1.5 Trillion....

But wont most states, and even businesses have future liabilities? If they are in the green always a nice sign.

[Tulemutt]

Originally Posted by Woody01

This is CA were're talking about. That would make them look bad. It's amazing how many people crow about the surplus and 5th largest economy and then get a blank look when you mention debt....

... beeeecause: debt is only meaningful in relation to income .... aaaaand: California has the world’s 5th largest economy.

That’s why.

Again.

[Woody01]

Originally Posted by Tulemutt

... beeeecause: debt is only meaningful in relation to income .... aaaaand: California has the world’s 5th largest economy.

That’s why.

Again.

Nope. You ever run a real business? One down year and you're screwed......
Think about it....oh wait - you know it all so you won't.......

[Tulemutt]

Originally Posted by Woody01

Nope. You ever run a real business? One down year and you're screwed......
Think about it....oh wait - you know it all so you won't.......

Over 30 years, yes.

And what you say changes nothing about the truth of my statement.

Debt is only meaningful in relation to income and potential. That is axiomatic to our monetary system that creates new money, in fact, entirely, based on debt. And potential to repay. Crazy system, but the banker class who created it so many years back absolutely love it. It is the secret to their wealth and power.

[Woody01]

Originally Posted by Tulemutt

And potential to repay.

There it is, IMHO. I don't wanna argue tonight, I've got a nice glass of whiskey going......let's agree to disagree - you think I'm wrong and I'll think you're wrong, deal...?