Is California Headed For Economic Disaster?

25 Oct 2017

Opinion piece from one who has served in the state government…

2017/10/19 – A Further Perspective… Adios, California – The American Spectator

The entire time I served in Sacramento, the Democrats were focused almost exclusively on legislation which either had to do with wealth redistribution or creating new “rights” for alleged victims such as illegal aliens, criminals, union members, homosexuals, transgenders and other “oppressed” groups. And it’s no different today. The reality is that the average middle class Californian hasn’t had representation in the halls of Sacramento for decades.


California’s $2.62 trillion economy is larger than that of France, Canada, Brazil, Russia, and Italy. However, that GDP stat does not factor in California’s cost of living, which is 36.2% higher than the national cost of living.


Silicon Valley “accounted for 50% of California’s private industry real GDP growth.” In other words, without a few dozen mega profitable high-tech Silicon Valley firms such as Apple, Google, and Facebook, California’s GDP would be significantly smaller.


The Federation for American Immigration Reform estimates that California spends $22 billion on government services for illegal aliens, including welfare, education, Medicaid, and criminal justice system costs. Liberals claim they more than make that up with taxes paid, but that’s simply not true. It’s not even close. FAIR estimates illegal aliens in California contribute only $1.21 billion in tax revenue, which means they cost California $20.6 billion, or at least $1,800 per household.


Today, large sections of California look like a Third World country with ramshackle buildings, junky cars and trash strewn everywhere. We even have outbreaks of Hepatitis A, just like the Third World has. A state cannot chase away the producers and attract the takers year after year without economic consequences. That doesn’t end well so there’s little doubt California is headed toward economic disaster.

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New Fiduciary Rules Effective June 9

3 Jul 2017

2017/06/09 – The fiduciary rule is now in effect: What you need to know – Yahoo

The rule requires financial professions of all types, including brokers, financial advisors or wealth managers, to act as a fiduciary, meaning they must act in the best interest of their clients. Before this rule went into effect, an advisor may have recommended financial products that are pretty good for you, but might have come with higher fees or commissions that benefit them. In a 2015 White House report under the Obama administration, the Council of Economic Advisors estimated that this conflict of interest costs investors $17 billion every year.

Now with the fiduciary standard in place, brokers have to be more upfront, transparent regarding fees and commissions, and recommend retirement products in their client’s best interests.


In fact, the fiduciary rule was supposed to go into effect in April, but President Trump backed the directive to delay the rule and review it again. The administration said it will reduce Americans’ access to certain retirement offerings, information and advice.

But after careful consideration, Labor Secretary Alexander Acosta confirmed that the rule would be phased in beginning June 9.


US Blacklists Chinese Bank Regarding North Korea

30 Jun 2017

2017/06/29 – U.S. blacklists China bank, revving up pressure over North Korea – Washington Times

The Treasury Department on Thursday declared the Bank of Dandong a “primary money-laundering concern,” proposing to sever it entirely from the U.S. financial system, pending a 60-day review period. Although Trump’s treasury secretary said the move didn’t target China, it comes a week after the president lamented that China’s promise to help with North Korea “has not worked out.”


Samsung To Build $380M Plant in SC, add 954 jobs by 2020

29 Jun 2017

2017/06/28 – Samsung South Carolina HA Facility Investment – Samsung

Samsung reached an agreement with the State of South Carolina to open a state-of-the-art home appliance manufacturing plant in Newberry County. The $380M facility will produce some of Samsung’s most popular, industry-leading home appliances and will generate 954 local jobs by 2020.

Congrats to SC.


Mike Rowe on Jobs, Minimum Wages

31 May 2017

Mike Rowe, formerly of “Dirty Jobs,” talks jobs and minimum wages. This is good, solid, common sense.


China’s Credit Rating Downgraded by Moody’s

24 May 2017

2017/05/24 – Moody’s downgrades China’s credit rating – BBC News

Moody’s, one of the world’s big three ratings agencies, cut China by one notch to A1 from Aa3.


Moody’s said that the downgrade reflected expectations that China’s financial strength would “erode somewhat over the coming years, with the economy-wide debt continuing to rise as potential growth slows”.

The other two main credit rating agencies have so far left their evaluations unchanged.

Standard & Poor’s rating for China currently stands at AA- with a negative outlook, while Fitch’s rating is A+ with a stable outlook.


General – 2nd Quarter 2017 Economy

12 May 2017

2017/05/11 – U.S. Weekly Jobless Filings Fall; Producer Prices Rebound Strongly – NY Times

The labor market is close to full employment, with the unemployment rate at a near 10-year low of 4.4 percent.

The number of people still receiving benefits after an initial week of aid tumbled 61,000 to 1.92 million in the week ended April 29, the lowest level since November 1988.