RE: Global Contagion of Bank Failures Coming…
I wrote:
The only significant export drivers bringing income into the State which aren’t dependent on the government spending or the following are: Professional & Business Services and Information. Which are essentially both tied into computers, networks, and automation technology. Which together comprise ~25% of the GDP.
https://www.statista.com/statistics/304869/california-real-gdp-by-industry/
Decentralized ledgers are going to significantly disrupt Silicon Valley and spread the work around the globe:
http://degoes.net/articles/blockchain-stack (see my comments at the end)
Trump’s new tax plan removes much of the deduction for state income taxes, so blue states can’t in effect charge the federal government for their high taxes and socialism, as the middle and upper middle class will be more financially motivated to leave for a 0% income tax state.
When the government spending collapses due to the coming sovereign debt and pensions crisis:
https://steemit.com/money/@anonymint/global-contagion-of-bank-failures-coming
Then the other sectors of Californification’s economy will decline. The contagion/confluence will envelope into a Minsky Moment self-reinforcing spiral of decline into the economic abyss.
The coming Maunder Minimum (2020 - 2040) and it’s confluence with major earthquakes and volanic eruptions which is already creating disruptive climate and natural disaster outcomes will likely worsen:
https://www.google.com/search?q=site%3Aarmstrongeconomics.com+maunder+minimum
California may break apart into politically autonomously governing regions as it descends into Mad Max chaos.
https://www.armstrongeconomics.com/history/americas-economic-history/currency-v-language/
The following chart shows a mass exodus from Californication:
Armstrong wrote:
State Senate President Pro Tem Kevin de León, D-Los Angeles, proposed to set up a state charity named the California Excellence Fund which would allow taxpayers to donate to it get a 100% credit on state income taxes. Since Trump’s federal taxes doesn’t impose limits on charitable deductions, the scheme would, in theory, allow Californians to lower their federal tax obligations while paying the same amount in state taxes. [thus attempting to tax dodge Trump’s intent to defund the blue States with high taxes]
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De León’s tax dodge may be legal, but it might not be for long:
The whole mess is likely headed for court, giving California politicians many months or years to posture and rant about “resistance.” Meanwhile, beleaguered taxpayers continue to suffer under the highest state taxes in the country, and all state lawmakers are doing about it is giving them sketchy tax advice.
This is not going to end well:
https://www.armstrongeconomics.com/world-news/pension-crisis/calpers-on-the-brink-of-insolvency/
The one above is the main one to read as it goes direct to the point that
CalPERS and the State of California are insolvent and Trump’s new tax
system denies the ability to DEDUCT state income taxes from federal tax
return. Effectively accelerating California’s economic collapse. Gov.
Brown will have to massively raise all forms of taxes to try to prevent
CalPERS bankruptcy which will mean the economy of CA will collapse mainly due to an accelerating exodus as explained in the following two blogs:
https://www.armstrongeconomics.com/qa/california-dreaming-the-great-migration-from-california/
https://www.armstrongeconomics.com/world-news/taxes/california-in-peril/
And Europe is also committing economic suicide in a similar but even more draconian way than California. The new EU “General Data Protection Regulation” (GDPR) is establishing a new gestapo and will simply drive all hitech companies out of Europe. But worse is that the law can apparently also be used arbitrarily against individuals to take revenge of them for saying or doing anything that the government or an individual bureaucrat doesn’t like. This is really off the charts creepy along the lines of totalitarian 1984 or the Venetian Mouth of Truth (see also).
As Armstrong predicted also, the North Pole is moving towards Europe as we descend rapidly into a new Mini-Ice Age Maunder Minimum, with concomitant rise in pandemics in humans and pandemics in the genetically depleted GMO food supply.
Solar Minimum The Fastest Decline in almost 10,000 Years
Canada is also enjoining the “ideological suicide” by Covering Up Global Warming Nuts Destroying the Water Supply.
South Africa is determined to repeat Zimbabwe’s fall from bread basket to Mad Max, by Expropriating White Farmer’s Property ostensibly to deflect mass discontent with the drought.
as a cave man, I approve.
Hydroponics with sun lamps or fruit walls are potential alternatives.
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