California Dreaming

Guest Post by Martin Armstrong
calpers.530x298
California is a complete black hole. The people do not even realize that government has been so corrupt, that every person in California owe $93,000 at the end of 2016 to cover state employee pensions. Back in 2015, Calpers, the State Pension system, sold out stocks and bought bonds because they thought the stock market would crash. They have been quietly supporting efforts in Congress to seize 401K pension plans and hand them to the States to manage. Their top two corrupt politicians would have had this through if Hillary won.
Pelosi-FeinsteinIt would be a win-win for the rest of the country if California seceded and took its two leading politicians with them. Of course, I doubt these two notorious politicians would vote to leave. It would be like the Clinton Foundation having to close shop because Hillary lost her influence to peddle.

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Nancy Pelosi is the Minority Leader of the House of Representatives, representing California’s 12th congressional district. Pelosi made a fortune trading initial public offerings (IPOs) while she had access to insider information from Congress. Yet she would never allow Social Security to invest for the average person. Pelosi has confirmed how Democrats really do dislike Christians. She recently said: “They pray in church on Sunday and then prey on people the rest of the week.”  The Podesta emails that revealed the Democrats disliked Catholics and Evangelical Christians, seem to be on point about their attitude: Hillary’s staff said Catholics are “severely backwards” and further demeaned them saying they don’t know “what the hell they’re talking about.”
Then there is Dianne Feinstein. Of course it was Feinstein who supported the NSA and called Snowden a Traitor. Her Op-Ed justified taking everyone’s emails, phone calls etc claiming 911 would not have taken place if the NSA had full power to do whatever it desired – and did. Our models were showing California would move to secede back then and they too see to be on target. Even Zuckerberg of Facebook said he had personally called President Obama to voice his outrage at the NSA spying and Feinstein’s insane support of activity that everyone has come to see as standard. He said on his own Facebook Page:

 

“When our engineers work tirelessly to improve security, we imagine we’re protecting you against criminals, not our own government.” 

Then Feinstein’s husband won the contract to sell Post Office Department real estate. Of course they cover that up claiming Blum Capital Partners, L.P (Richard Blum, Sen. Dianne Feinstein’s husband), won the bid against 7 other competitors. They have never released proof of the bidding. Even the appearance of impropriety is reason to recuse a judge whenever it may be “reasonable be questioned.” It goes even further: Blum and Feinstein both knew that this transaction has the appearance of corruption and a Federal Judge would be compelled to recuse themselves from such a case if “his spouse or minor child residing in his household, has a financial interest in the subject matter in controversy or in a party to the proceeding, or any other interest that could be substantially affected by the outcome of the proceeding.”

California Gold Rush
To all my friends in California – it’s time to leave. Florida has good weather and no state income tax. It is the number one state in economic growth and job creation most of the time with over 3% and Orlando, even back in 2014, was the top city in the USA for job growth coming in at 3.7%. California is on target for going BUST in 2021. It already has the HIGHEST taxes in the USA and Gov. Jerry Brown’s administration miscalculated costs for the state Medi-Cal program, which is their excuse, by $1.9 billion last year. This is just a oversight that contributed to Brown’s projection of a deficit in the upcoming budget. However, Medi-Cal covers illegal immigrants. There is NO REQUIREMENT whatsoever to have a citizenship OR a resident status paying taxes. Hello! Yes call Trump a racist and secede because you want to cover everyone even if they do not pay taxes on the cash they earn. No wonder they do not want a wall. All of Mexico can go to California for free healthcare unlimited.
Only a handful of states, including California, Nebraska, North Carolina, North Dakota, Rhode Island, and Vermont, currently tax ALL retirement income and don’t provide any general income exclusion for seniors.
Worse still, California taxes people who retire and move to other states. So it may be best to get out before it is TOO LATE! Under federal law, states are now clearly prohibited from taxing certain retirement income unless you’re a resident of, or domiciled in, that state. California was attempting to tax people in other states claiming they earned their pension in California. The federal law applies to all qualified plans (for example, 401(k), profit-sharing, and defined benefit plans), IRAs, 403(b) plans, 457(b) plans, and governmental plans. So if you sell your home and get out and domicile in a state that does not tax pensions, you are OK on this level. However, the law provides only limited protection for other (nonqualified) deferred compensation plan benefits. This is called “top-hat” plan benefits that are paid over an employee’s lifetime, or over a period of at least 10 years. Stock options, stock appreciation rights (SARs), and restricted stock are not meaning California is completely free to tax these benefits even after you relocate.
How much longer can this California Dreaming continue? Our computer says 2021. It’s time to leave before they impose an exit tax.

 

28 U.S. Code § 455 – Disqualification of justice, judge, or magistrate judge

(a) Any justice, judge, or magistrate judge of the United States shall disqualify himself in any proceeding in which his impartiality might reasonably be questioned.
(b) He shall also disqualify himself in the following circumstances:
(1) Where he has a personal bias or prejudice concerning a party, or personal knowledge of disputed evidentiary facts concerning the proceeding;
(2) Where in private practice he served as lawyer in the matter in controversy, or a lawyer with whom he previously practiced law served during such association as a lawyer concerning the matter, or the judge or such lawyer has been a material witness concerning it;
(3) Where he has served in governmental employment and in such capacity participated as counsel, adviser or material witness concerning the proceeding or expressed an opinion concerning the merits of the particular case in controversy;
(4) He knows that he, individually or as a fiduciary, or his spouse or minor child residing in his household, has a financial interest in the subject matter in controversy or in a party to the proceeding, or any other interest that could be substantially affected by the outcome of the proceeding;
(5) He or his spouse, or a person within the third degree of relationship to either of them, or the spouse of such a person:
(i) Is a party to the proceeding, or an officer, director, or trustee of a party;
(ii) Is acting as a lawyer in the proceeding;
(iii) Is known by the judge to have an interest that could be substantially affected by the outcome of the proceeding;
(iv) Is to the judge’s knowledge likely to be a material witness in the proceeding.
(c) A judge should inform himself about his personal and fiduciary financial interests, and make a reasonable effort to inform himself about the personal financial interests of his spouse and minor children residing in his household.
(d) For the purposes of this section the following words or phrases shall have the meaning indicated:
(1) “proceeding” includes pretrial, trial, appellate review, or other stages of litigation;
(2) the degree of relationship is calculated according to the civil law system;
(3) “fiduciary” includes such relationships as executor, administrator, trustee, and guardian;
(4) “financial interest” means ownership of a legal or equitable interest, however small, or a relationship as director, adviser, or other active participant in the affairs of a party, except that:
(i) Ownership in a mutual or common investment fund that holds securities is not a “financial interest” in such securities unless the judge participates in the management of the fund;
(ii) An office in an educational, religious, charitable, fraternal, or civic organization is not a “financial interest” in securities held by the organization;
(iii) The proprietary interest of a policyholder in a mutual insurance company, of a depositor in a mutual savings association, or a similar proprietary interest, is a “financial interest” in the organization only if the outcome of the proceeding could substantially affect the value of the interest;
(iv) Ownership of government securities is a “financial interest” in the issuer only if the outcome of the proceeding could substantially affect the value of the securities.
(e) No justice, judge, or magistrate judge shall accept from the parties to the proceeding a waiver of any ground for disqualification enumerated in subsection (b). Where the ground for disqualification arises only under subsection (a), waiver may be accepted provided it is preceded by a full disclosure on the record of the basis for disqualification.
(f) Notwithstanding the preceding provisions of this section, if any justice, judge, magistrate judge, or bankruptcy judge to whom a matter has been assigned would be disqualified, after substantial judicial time has been devoted to the matter, because of the appearance or discovery, after the matter was assigned to him or her, that he or she individually or as a fiduciary, or his or her spouse or minor child residing in his or her household, has a financial interest in a party (other than an interest that could be substantially affected by the outcome), disqualification is not required if the justice, judge, magistrate judge, bankruptcy judge, spouse or minor child, as the case may be, divests himself or herself of the interest that provides the grounds for the disqualification.
(June 25, 1948, ch. 646, 62 Stat. 908; Pub. L. 93–512, § 1, Dec. 5, 1974, 88 Stat. 1609; Pub. L. 95–598, title II, § 214(a), (b), Nov. 6, 1978, 92 Stat. 2661; Pub. L. 100–702, title X, § 1007, Nov. 19, 1988, 102 Stat. 4667; Pub. L. 101–650, title III, § 321, Dec. 1, 1990, 104 Stat. 5117.)
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12 Comments
kokoda the deplorable
kokoda the deplorable
January 29, 2017 10:32 am

Feinstein, Pelosi, ISIS, etc., are among the multitude of sub-humans in our species. There is very little justice in the world in relation to atrocities committed, which is the reason we individuals must seek justice when the system fails, regardless of the personal cost.

In the Middle East – what kept the 7th century cretins at bay was the power enforced by strong dictators/leaders. Power/force is the only deterrent they understand.

Captbill
Captbill
January 29, 2017 11:12 am

There is irrefutable PROOF that democrat rule has ruined cities and states in this country with their socialist policies. CA is going to be no different and as far as people getting out–well, I saw the-writing-on-the-wall in 1992 and got out. It’s gotten much much worse since–just look at the proliferation of new gun laws there.
So I now live in a border town in AZ and these mutherfuckers ARE moving here–in droves (NV too). And how do they vote? No different that if they were in CA–for democrats. Same thing has happened to NV–their legislature is now D and they voted there very first Bloomberg-sponsored background check law in (although the AG there says no way they can enforce it).
Fuck the Californicators, you made your bed.

zigzag
zigzag
January 29, 2017 11:41 am

Cali’s absurdly corrupt $100 Billion choo choo train to nowhere was the last straw for me. I got out of CA in 2013 after living there 25 years. I vividly remember around 1993 visiting a hospital nursery that had row after row of newborn Latino babies. This was a MediCal hospital. I was told by a nurse that most of the newborns in that nursery were ” anchor babies” … children of non-citizens. I had never heard that term before. She said the nursery was ALWAYS full to overcapacity…!!

Having been born , raised and educated in Chester, PA there is one thing I learned and never forgot: … demographics is destiny ! Slowly the Great State of California became Mexifornia….government employees, legislature, city councils, school teachers, etc. progressively and aggressively going Latino.

Richard Nixon and Ronald Reagan couldn’t be elected dog catcher in that State today. Sad.

Tim
Tim
January 29, 2017 12:55 pm

What a shame.

The few times I’ve visited California, I’ve really liked it. Vast differences in geography and bio-regions: They have it all – Deserts, Oceans & beaches, big cities, small charming towns, mountains, snow, lakes. It’s really a nice place to visit.

Too bad it’s run by loonies.

Old Guy
Old Guy
January 29, 2017 12:57 pm

Aside from the absurd pension promises made to public service union employees I want to show just how fiscally irredeemable California is. I live in a modest middle class home in the SF bay area. In 2010 as I would look out my front door my neighbors were as follows. To my left, a deputy sheriff age 42 on permanent disability due to a “bad back” which didn’t keep him from collecting vintage autos in his backyard. To my right, a 45 year old woman on permanent disability due to drug dependency.
And my favorite, a 43 year old iron worker directly across the street on permanent disability for arthritis who works in his yard and does brake jobs on cars for side money. I’m in my 60s. I still work. The good news? The guy to my left died in a solo car accident and the woman on my right moved to Nevada. But the guy across the street keeps drawing his free s–t money and working on cars.

starfcker
starfcker
  Old Guy
January 29, 2017 3:19 pm

Martin, don’t encourage them to move to Florida please. Hey Californians. Florida is full of vicious pitbulls, untreatable tropical diseases, and the humidity is unbearable. On the plus side, see how fast Carlos Jimenez folded on the sanctuary city thing? Miami is Greece, cut the federal money and the implosion would make the Hindenberg look pedestrian.

Rojam
Rojam
  Old Guy
January 29, 2017 4:35 pm

From one old guy to another; I too am in my 60’s. I too still work. In fact, I still work 60 hrs/ week. The scene you describe could be a scene from many neighborhoods across America, including mine in suburban Detroit. I too lament to anyone willing to listen how it is legalized theft and tyranny to continually support younger, healthier freeloaders who are milking the system at my expense. They are thieves and bums. A disgrace to all that is good and proper and despicable deadbeats!! They must wake up every day laughing at us for toiling away only to be taxed to death and steal from us while they live the easy life. Does it burn me up and sometimes get to me? Yes and yes! However, while freeloaders and scammers may wake up laughing, people like you and I, old guy, can look in the mirror and know our conscience is clear. I don’t know about you, but that is a huge thing for me. Eventually, the cart we are pulling will have more in it than we can pull. The burden will become too great. It will soon stop moving and we will walk away not having to pull it any longer. That very thing is starting to happen and continue to worsen as our overlords continue to kick the can and refuse to do the hard things to stop the bleeding. The road they are kicking it on is a dead end street. The economics of the problems dictate that and I am firmly convinced of it. As for the ones left in the cart? They will either have to get out and learn to become responsible for themselves or perish. Hopefully they will be up to the arduous task and become productive and respected. I am thankful to God almighty that I am still healthy enough to work and fortunate enough to have a job to go to. I will continue to work to the best of my ability and be thankful for all I have been blessed with. Including a clear conscience.

Old Guy
Old Guy
  Rojam
January 30, 2017 3:55 am

I’m blessed as well Rojam. I know you can appreciate this. My first 2 summer jobs in High School were humping hods of bricks for the masons (3 story town homes=2 ladders) and humping shingles for roofers the next year. All work I did after that was gravy (lol). Additionally, I’ll work until I die or until physically unable to do so. Clear Conscience? You bet.

Rojam
Rojam
  Old Guy
January 30, 2017 6:11 am

Your next to last sentence is chilling. I tell people the exact same thing. Word for word. As for first jobs; you certainly were an overachiever compared to me. My first job (other than a paper route) was the summer of sophomore year of high school. I worked at an amusement park in Detroit. Really! I spent the whole summer of ’72 blowing up balloons for the dart game. I made $1.50/hr. It was quite a wake up call for a toe headed kid who grew up in a middle class version of a Leave It To Beaver episode. The next summer I got a $.25 raise and was “promoted” to work skee ball. I guess I wasn’t much of a go-getter-ball-of fire- guy back then. But I learned a lot. Lol

Oberonadon
Oberonadon
January 29, 2017 3:34 pm

Senator Dianne Frankenstein is 84 this year. Can you say TERM LIMITS?

Her husband, Blum, is also on the committee that’s trying to ban all college students in the University of California system from criticizing Israel and/or Jews in any way. Simply pointing out the atrocity of the Gaza bombing that killed 2,500 Palestinians in 2014 or or even suggesting that maybe the U.S. shouldn’t be sending Israel quite so many billions of dollars would be enough to get you expelled from your university for “anti-Semitism”. No political discourse of any kind that could even remotely be construed as unfriendly to Israel, even if it’s TRUE, will be allowed. Students need to wake up to and prevent this vulgar, clandestine abuse of their Constitutional freedoms.

TampaRed
TampaRed
January 29, 2017 9:52 pm

Though it will never happen because of Republican cowardice ,Congress should rescind California’s statehood and appoint a territorial governor.

james the deplorable wanderer
james the deplorable wanderer
January 30, 2017 4:55 pm

My college roommate’s best friend was a 6′ 3″ heavily-muscled mechanical engineering student, not exactly what you imagine as a nerd. His story on his physique:
“I was looking for a summer job to earn some cash to buy a car. The only one I could find was at a brickyard: carrying finished concrete cinder blocks from the conveyor, across the yard maybe fifty yards, and stacking them on pallets. I was in fairly good shape from before, so I said yes, and started carrying them, one under each arm, fifty yards and stacking them. By the end of the first day, I was beat; everything hurt, and I mean HURT. I felt like I’d been beaten with clubs, and I was so tired I could hardly see.
What kept me going was my co-workers: six-foot-tall Amazon negro women, with arms like my thighs, who carried TWO bricks under each arm and chattered away like magpies about their boyfriends, children, neighbors, everything under the sun. I swore I wouldn’t be outworked by a bunch of women, and I stuck it out. By the end of the second week, I could talk while carrying, and by the end of the second month I started carrying two bricks under each arm.
At the end of the summer the black foreman gave me an honest compliment, which I still treasure: ‘You the hardest working white boy I ever seen’. And now, when Calculus seems hard or physics looks impossible, I remember carrying cinder blocks across the yard, and I know I don’t want a career that looks like that, so I go back and study harder”.
We need more brickyard jobs, and a requirement that Welfare recipients work them to receive benefits, or similar.