Kazwell.com

 What does the most financially strapped state in the union do when they run out of money?  They pay their bills with IOU’s.
California is more than merely a microcosm of American style socialism, it is the big kahuna!  After all, it is the world’s 6th largest economy.  It is proclaimed as the richest, most populist, most socially conscious state, and yet it has the most debt.
As the state’s politicians refused to agree on which sacred cows (spending programs) to slaughter, the cash ran out.  On July 2nd, 2009, those doing business with the state, taxpayers who are owed tax refunds, and local governments all started receiving IOU’s (called warrants).
A story in the New York Times makes the following comparison.  “So California is now just like a family that spends more than it takes in and holds off on the cable bill while paying the mortgage: its expenses are greater than its revenues.”  

One has to wonder if the politicians in Washington will see it the same way.  Would you care to bet?

Maybe It Is A St. Valentine Day Treat?

President Obama, Congressional leaders and most economists says that the stimulus package just passed by Congress has no quick fixes.  I want to know “Why not?”
The proponents of the legislation say that the agreement will have some immediate effect.  The bill’s tax cuts, meager though they may be, are being touted to provide an immediate stimulating effect.  These cuts, says the Obama team, will spur a certain amount of economic activity by stimulating consumer spending, and creating (or at least preserving) some jobs.  If so, then why not have this stimulating effect the centerpiece of the stimulus package?

“I used TurboTax to prepare my returns.” 

Tim Geithner, Secretary of the Treasury designee, told Congress during his confirmation hearing about his tax payment failures, January 21, 2009