[California is] less than 50 days away from a meltdown of State government

As stated here (bottom of essay), California will be the preview to what is about to happen globally.

What is important to understand here is that the evolution of economic dynamics is not linear but, rather, exponential. Once California goes, the dynamic will accelerate markedly. California is one of the five largest economies in the world. THE WORLD folks. The implosion of California will leave a gaping hole in budgets everywhere. Fasten your seat belts.

Mike Shedlock digs out this official report:

http://www.controller.ca.gov/eo_pressrel_5893.html

My prediction stands. 15% average official unemployment across the board in Western industrialized countries by the end of 2009. That will put us at real unemployment of anything from 25% to 30%. That’s a whole bunch of angry, hungry, probably homeless people with a lot of time on their hands to ponder who to blame. And let me tell you that the political and corporate scandals that have broken out so far and those that are about to be revealed, are really going to piss off a whole bunch of citizens everywhere.

Unless someone, somewhere should be able to re-start inflation at anything approaching the rate of the period 2004/2007, we are in for a world war.

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