LAST TO LEAVE TURN OFF THE POWER IN CALIFORNIA
My nine children are fifth generation Californians. I know a bit about California having been born and raised in California. I’ve built a global public investment banking institution in San Francisco, been a large tax payer and employer. But decades ago I moved out with my family to the South and I’m so glad I did so.
The benefits to my family on everything included:
- Family values in community everywhere
- Far more home for the money
- Far less taxes
- Far lower cost for everything – water power – everything – food
- No traffic and vastly better standard of living
In 2017 we see the first negative migration to California EVER. The state had people move in as always. The state had people move OUT in far greater numbers for a net decline in the state population.
State projections relied on growth. Now there is not only no growth there is negative growth and state projections have zero studies for how this trend which is explosive today turns out for economics. It is not a happy State Ending folks.
A NET DECLINE IN THE STATE POPULATION. The tax payers are leaving California. Income is leaving California by the BILLIONS and the rate of that loss is SKYROCKETING UPWARD. No one has models for this and we ring the warning bell as it will sink the state. It is economics 101.
California under the exiting leadership of Governor Brown’s late father, whom I knew personally California Gov. PAT Brown was:
- # 1 in Education
- # 1 in life style
- # 1 For Business
- # 1 For highways
- # 1 for lowest cost of utilities
Today in the generation from the Father to the Son as Governor of GOV Jerry Brown – of California we have;
- # 43 in Education
- # 49 in lifestyle
- # 50 – worst state for business in the United States
- # 36 on transportation even with highest taxes its sinking
- Highest taxes highest utility highest cost of everything
Californians are becoming aware how MUCH BETTER THEIR LIFE IS and their ECONOMICS are if they just move. Move from the storms, the never ending water issues and draughts, move from the earth quakes, move from the mis management politically, move from the hostile jobs state with business RUNNING OUT OF CALIFORNIA in numbers never seen before, and move from the FIRES that with climate change as we see, have set new records for over half a decade every year being worse than the last year – now sky rocketing insurance in California is yet another reason.
You work for so many days a week. You keep more of that work if you MOVE and you keep far less of that work if you stay. Economics as optics in California for anyone with a cell calculator on their iPhone is easy math….MOVE. There is penalty and risk to stay with life style and security issues. How many shootings in California versus the rest of the nation? MOVE.
WHEN YOU MOVE OUR OF CALIFORNIA
- Housing and rent money go so much farther
- You have so much more free money to invest and spend
- You pay less taxes
- You pay less for utilities and fuel a LOT LESS
- You don’t have the traffic life style you get back TIME itself
- You are more safe and secure from the weather to personal
- You have a rising amazing lifestyle impossible in California
Outside California your lifestyle is amazing and rising up. Inside California your lifestyle is declining for decades and moving downward on all measured matrix issues.
You may delay. And stay.
The risk there is those who are smart are already moved or moving. They are moving out to better pastures for life and economics and opportunity. The issue economically is like musical chairs.
The Smarty Pants in Sacramento have created an economic which if not reformed by legislation provides a DEATH SPIRAL ECONOMIC to California itself as a state. The massive migration OUT OF THE STATE does the following to tax base:
- Tax base movers paid is no longer paid
- Growth the state relied upon is no longer present
- The state models are wrong
- The fires remove thousands upon thousands of properties from paying state property tax effecting countries and cities and the state as a whole in an economic downward death spiral.
- The borrowing to keep things going in a sea of state red ink has created a SUPER HIGH RISK DEBT DEFAULT STATE.
California Credit Rating once on equal to the USA itself, is now so many times downgraded the state is near junk bond ranking for debts and some is junk bond ranking now. The cost of borrowing as the debt loads just rise and rise is soaring. I wrote Governor Brown to at no cost consult to provide some solutions to no reply. NO REPLY to even explore a solution as the model they perpetuate is socialistic non economic and failing miserably for the people of the state. Those who have economic education are moving because the ECONOMIC FIRE STORM of state debt defaulting is going to be a catastrophe for the world.
WILL CALIFORNIA DEFAULT ON ITS DEBTS? It is my opinion that based upon the idiotic obsolete antique backward looking 100 year old charts graphs and models the insane Federal Reserve Board applies today – old economics – that do not even exist any longer in the NEW ECONOMICS of globalized digital ai markets – where all the failed fed policies create SUPER RISK in the SUPER DEBT BUBBLE MARKET OF 2019 – far greater risk than say 1929 today on all measured matrix we compare. WORSE as to risk and by far. So why risk the risk ? The FED is so obsolete they are just placing a sea net of rigid financial economic protocols on a school of fish ( the USA economy ) in which there are no fish inside the FED net at all – the fish are all swimming in the AI digital global economy and the Fed net is effecting them all with nothing like their old USA only policies used to. WILL CALIFORNIA DEFAULT ON ITS DEBTS:
- Enormous California debt at almost zero interest for ten years must now post BROWN refinance at 300% and higher interest when California lacks money to pay their refinance cost.
- The cost to borrow the enormous sums required into 2020 is at interest rates with declining credit ratings that are soaring to levels California simply lacks resources without new options to manage in my opinion.
- The state has pre planned issues – maintenance to high ways bridges damns all sinking into danger zones – that it has no way to pay cost for.
- The state has draught – water issues it has no present solutions for – one of the highest global fuel costs power costs water costs and tax costs to its state citizens of anywhere on earth – cost are soaring and California is under water in a sea of soaring debt carrying costs.
- The next downturn which will be sudden dramatic and in AI DIGITAL WORLD at volatility levels seldom if ever seen before, will place California into DEBT DEFAULT.
We suspect the California DEBT DEFAULT will be a massive cascade ramping up into Chicago and Red debt state and cities next in a DEBT SUPER BUBBLE BURST that will impact the entire world. The state defaulting on debt will create in our opinion a massive migration out of the state – like has never been seen in modern times. From rising sea levels to desertification of California and the fires the life in California simply today does not make economic sense.
Those residing in California if they did comparison tables of three city choices elsewhere as options – would see economics that can not lie do not lie and will not lie. The economic optics suggest if you follow the math model the EARLIER YOU LEAVE CALIFORNIA the superior your own economic optics will be. Or the longer you delay the greater the price you will pay from super crashes in real estate and other values without recovery.
The double migration of companies and people out of CALIFORNIA is the largest RUN on the state in history. With feelings morality is off in California from Criminal Wells Fargo bank with a decade of crimes against America and its own core customers for profits and bonus money – to the privacy issues we all see from FAANG and others. California is in decay. All living things including communities thrive or they rot. California has been legislatively misled is rotting for three decades and the rot stench ( debt ) is the EBOLOA of California economics.
I left decades ago at the very best time to depart economically and I knew it. I Love my home state but I do not love what my home state is becoming via uninspired wrong minded leadership. How could California have a promising future as the SINGLE MOST HOSTILE BUSINESS STATE ON EARTH IN WHICH TO DO BUSINESS? The jobs have moved and are moving the future has moved and is moving. Sales Force building a high rise earth quake vulnerable home office in tax # 1 penalty state in America suggests – what would shareholders profit in fact from a relocation had that home office been built in Hunstville or Tampa Bay for example. The outcome to shareholders would be ginormous.
My recommendation as runs of investment capital, jobs, industry, business, institutional to small and people as individuals and tax payers OUT OF THE STATE last year was net red ink – more leaving. The pace of departure is soaring – rising – a spiral that is a DEATH ECONOMICS for the state income receipts which not only will not grow as they anticipated when taking on the debt the income will only decline….because of wrong minded politics ruining state futures.
SHORT CALIFORNIA FOLKS the last person leaving should turn off the power in the state – although the power is what has caused the worse fires I CALIFORNIA HISTORY due to poor maintenance state inspections and so forth – where the UILITY industry state wide is burning the state out of business.
Berny Dohrmann – ON THE TRUTH ABOUT CALIFORNIA RISK ON
PS: Now that California has ended up in the worst mess of its history the leader who brought you the final nail in the coffin – Gov Jerry Brown I suspect will run for President to bring us more of the same for the nation itself….ah I don’t think that will work out so well for you Jerry Brown. Sir in any debate with YOU…I would have to look over and say…GOVERNOR YOU ARE NOT – PAT BROWN AND THAT IS FOR SURE………….