With one in every eight workers unemployed, and empty state coffers, California is borrowing billions of dollars from the federal government to pay unemployment insurance, money that comes from your taxpayer dollars.
The Los Angeles Times reports that the state owes $8.6 billion already, and will have to come up with a $362-million payment to Washington by the end of next September, which of course they won't be able to pay back.
The continued borrowing means federal unemployment insurance taxes are going to increase, upping the annual payroll costs $21 a year per worker.
California tops the list of 32 states that have borrowed a total of $41 billion to pay claims.
The state took out its first loan from the federal government early last year, to deal with rising payment of benefits and number of claims. The current level of unemployment in California is now at about 14%, well above the national average of just under 10%.
So, the entire country is now paying for the folly of California's failed policies, which have sent them down the road of ruin.
One of the main reasons California is in the mess it finds itself now is that they taxed companies, and jobs, out of existence, mainly to pay for all the entitlement programs the state offers. California amounts to about 12% of the population, but is responsible for well over a third of the welfare paid out in this country.
Who does a good chunk of the money paid to entitlement programs in California go to? Illegal aliens, of course. They don't call it Mexifornia without good reason.
The Fed is already in the process of monetizing the national debt with what is called 'quantitaive easing' (we're on the second round or what's being called QE2) which essentially means the Fed is printing money to pay down the national debt.
This practice has most economic experts starting to talk about doomsday scenarios, which have the U.S. and the dollar relegated to bankruptcy and third world status. If the federal government also starts monetizing the debt of each state that is in trouble, you can expect to see that doomsday scenario speed up exponentially.