Curtailing social expenditure… a precursor to war (tic,toc… tic,toc)


Gov. Arnold Schwarzenegger asked lawmakers Friday to eliminate the state’s welfare program starting in October and dramatically scale back in-home care for the elderly and disabled as part of his May budget revision to close a $19.1 billion deficit.

The Republican governor also proposed cuts to state worker compensation. Besides asking for a 5 percent pay cut, 5 percent payroll cap and 5 percent increased pension contribution, Schwarzenegger has proposed cutting one day per month of pay in exchange for leave credit.

California is the Greece of North America… except that it is many folds the size of Greece… depending how you count, California is the fourth or the sixth largest economy in the world…. in the world!!!… California by itself is on par with France, the UK, Germany….

Schwarzenegger has some cutting to do all right… but 5% here and there are not going to cut it; pun intended. Instead of agreeing to reductions in benefits so as to maintain the system alive, Unions along with everyone enjoying some sort of state benefit will fight the austerity measures tooth and nail of course and in so doing they will bring about their own demise as well as the demise of the government (state and federal).

This is a generational change. We are pushing the limits of this monetary system that has been in force since 1913. Protesting austerity can be and has been successful provided politicians can induce “productive” inflation into the system. But once inflation is no longer productive, inducing more of it just brings about the collapse of the system.

The masses are seething in North America, in South America, in Asia, in Europe and the discontent is spreading and violent action is increasing in frequency. The power elite cannot allow this malaise to morph into civil disorder as this would mean their loss of power. So, before social anger reaches a flash point, our leaders will have to create a diversion to focus the attention of the people away from the plunder occurring at home.

Expect some extraordinary and tragic events to take place in coming weeks/months.


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