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California Is Now Less Than 90 Days Away From Financial Collapse…

(Natural News) The State of California is now less than 90 days away from a financial collapse that can only be averted by acquiring new sources of loans or dramatically slashing government-funded services in health care, pensions, welfare and education. The cracks of financial insolvency are starting to show, and Newsom has no plan that doesn’t lead California into anarchy and destitution.

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In a desperate effort to delay the financial collapse, Newsom has ordered the state’s EDD to delay unemployment checks for as many months as it takes to preserve the state’s rapidly-dwindling funds. The Mercury News reports that nearly 2 million Californians have yet to receive unemployment checks covering the first three months of the coronavirus lockdowns, which began in mid-March:

The brutal backlog is further evidence of the troubles plaguing the embattled state Employment Development Department, prompting the newly jobless to complain of an overwhelmed phone system and antiquated technology. The first-time claims have gone unfilled even as Gov. Gavin Newsom has promised reforms and increased staffing for the EDD.

“I have done just about everything I know how to do as a public official to make things work, but my colleagues, my staff, my constituents and I are at our wits’ end,” Assemblymember David Chiu, D-San Francisco, said in a tweet.

Gov. Newsom has been skimming billions from California taxpayers to fund a massive network of bribery to stay in power

Sources tell Natural News that Gov. Newsom has been skimming billions of dollars from California taxpayers, laundering it through communist China under the false pretense of purchasing coronavirus masks (NewsomWatch.com). Chinese companies launder the money and then wire funds back to shell companies controlled by Newsom, who is using the funds to pay out hundreds of millions of dollars in straight-up bribes to California officials in order to suppress any investigations into honest financial accounting. This is why the recent $1 billion mask deal with China has been shrouded in secrecy, as Fox News reports:

California Gov. Gavin Newsom is facing pushback as state lawmakers have begun demanding details of his nearly $1 billion deal to receive 200 million masks per month from a Chinese manufacturer.

“It would be great to get a heads-up directly from the governor’s office rather than watching it on national TV,” Assembly Budget Committee Phil Ting (D-San Francisco) said in an interview Wednesday with the Chronicle.

“We don’t have any information as to how many masks we’re buying, who we’re buying them from, at what price … What are we obligated? For how long are we obligated?”

As a result of the skimming, bribery and fraud taking place right in the middle of a coronavirus lockdown collapse, California has now run out of money. And since the state can’t print its own fiat currency (like the Federal Reserve can), it can only survive by either slashing expenses or acquiring new funds through loans, bonds or raising taxes.

The delays in California’s unemployment checks, we’re told, have nothing to do with a lack of personnel to process the payments. Rather, the checks are being deliberately delayed because the state has no money left to fund the unemployment program.

Similarly, recent cuts that have been announced for police departments are really about slashing cash outflows in order to try to keep the state afloat. Many police departments are funded by a combination of city and state funds, and the Los Angeles City Council recently voted to slash $150 from the LAPD budget, bringing the number of police officers down below 10,000, which will unleash a wave of violent crime across L.A. (Read Collapsifornia.com for more news about California’s demise.)

A closer look at California’s state budget reveals a shocking picture of financial collapse

California’s state budget is around $208 billion for 2019 – 2020. About $80 billion is spent on radical left-wing indoctrination centers known as “public schools” (although not all of this is state-level spending, some of it is local).

Over $100 billion in revenues are generated by the California state income tax. Another $27 billion comes from sales taxes, and $13 billion comes from corporate taxes. California’s general fund took in $143.8 billion last year and spent $147.8 billion in 2019 – 2020, showing that the state had been eating into its safety net of funds even before the coronavirus hit. In all, the state had about $19 – $21 billion in reserves before the coronavirus hit.

Now, thanks to Gov. Newsom’s coronavirus lockdowns, California’s revenue sources are getting hammered:

  • Lower property taxes at the local level due to businesses and retailers going bankrupt.
  • Reduced state income taxes due to fewer people working.
  • Lower sales taxes due to reduced consumer sales.
  • Lower corporate income taxes due to corporations losing revenues.
  • Severe losses in energy-related revenues (taxes) due to the collapse in energy markets.

READ MORE HERE

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