An Economy Bigger than Russia, Brazil, Canada, India or Spain Is About to Default → Washingtons Blog
An Economy Bigger than Russia, Brazil, Canada, India or Spain Is About to Default - Washingtons Blog

Thursday, July 2, 2009

An Economy Bigger than Russia, Brazil, Canada, India or Spain Is About to Default

An economy bigger than Russia, Brazil, Canada, India or Spain is in imminent risk of defaulting on its debts.

Which nation am I talking about?

Not a country . . . but the state of California.

California's GDP was around $1.812 trillion in 2007.

According to the International Monetary Fund, that is bigger than the 2008 GDP of every country in the world except the US, Japan, China, Germany, France, UK and Italy.

Given that California has more people than any other state in the US, and some of the largest agricultural, manufacturing, high-tech and defense sectors in the nation, you would think that helping California would be important.

And yet - instead of helping California - the federal government is giving aid to Goldman Sachs, JP Morgan and the other financial giants who helped to cause the financial crisis, and to Israel and other foreign countries.

Does that make any sense?

Note: Depending on which source is cited (CIA World Factbook, World Bank, or IMF), California ranks somewhere between 7th and 10th in world GDP.

Technically, California's economic measure is not GDP, as that is a national measure. The correct term is "Gross State Product".


  1. Does that make any sense?

    Yes it does if you have understand what is going on the last 30-40 years generally.If California defaults the state services will go in private hands.This is the plan.Same happened in New Orleans after Katrina.Everything was silently transferred in the private sector.
    Naomi Klein has analysed this phenomenon in her book "The shock doctrine" and found the pattern not only in America but in the whole world.
    Some neocons may like this but the dissolution of the state means automatically less democracy, this should be clear!

  2. Well hell no it doesn't make much sense and in the end they will do it anyway. Ca is not alone and all will need to be bailed out soon. Social
    Safety net programs are being trashed , services cut, state workers laid off 3 days a month and the Goldman Sachs of the world are buying $85000 rugs with our money. Our governments priorities are very strange!!

  3. What exactly does "defualt" mean in this case? Will they collpse? Declare bankrupsy? Shut down?
    What exactly will they do? I preditc they will get a loan and marrily continue on their own way.
    This is fascinating to watch and syudy. Wasn't there a stae Nort Dakota I believe that was in dire economic state yet they gt out of it by starting to print their own money? Why won't California do the same thing?
    Sensationalistic headlines aside, what does a state do when they are in such a situation? WHen USA hits the cealing in borriwing, they just raise the cealing.
    Why isn't Obama saying anything? Is the Fed gov simpyly waiting in thw wings so they can step in and take over?

  4. Folks,

    The Whole Financial system is crumbling. The ruling Elite know this. They are paying themselves and the cohorts before it ALL FALLS DOWN!

    The financial system is all based on debt. Accumulating it, selling it etc. It can't support it own weight any longer.

    It is a blessing. It gives us an opportunity to replace it with a system that is fair for everyone. Eliminate the FED and all Fiat currency.

  5. It may be a blessing, however seeing as how this is all planned out by the bankers and the Rothschilds most likely we will all simply be pushed into the 1 world currency those in charge are pushing towards. Expect to see the implementation of the Amero very soon if this isn't sorted out.

    And just to help those that may have forgotten history watch this video.

  6. Hey Amerikkka Israhell ain't done with you yet,soon you'll find out!

  7. Americans have become such clueless people on the utter unconcern, the treachury really, of their elected so-called "representatives". People like the California Grannies, Nancy Pelosi, Dianne Feinstein, Barbara Boxer, and many many more people just like them, have presided over a California for years, in which they have literally CELEBRATED the ILLEGAL IMMIGRATION, of millions upon millions of Mexican and other foreign nationals.

    These women above and other mainly Democrats, fought concerned Californians year after year on illegal immigration and its damage. They have advocated mass social services that Californians paid into for themselves and now often never receive. Indeed, they are not going to receive anything now. THE STATE IS FINALLY BROKE, THE WILL OF FEINSTEIN, BOXER, PELOSI, AND THE TRAITOROUS DEMOCRATIC PARTY IN CALIFORNIA HAS BEEN FULLFILLED. UTTER FINANCIAL RUINAITION. NOw these same politicians are complaining and intranigently trying to MAKE THE CALIFORNIA TAXPAYER PAY FOR THE DAMAGE THEY HAVE DONE.

    It doesn't matter what state you live in YOU, the American taxpayers are going to pay to helpf California, because it's TOO BIG TO FAIL. OF COURSE THIS STATEMENT SHOULD NOW BE FOLLOWED BY MANIACAL LAUGHTER.....HAHAHAHAHA........ETC., That laugther is from those who want to see the whole nation follow Californias example. Time to seriously WAKE-UP. AMERICANS OWE ILLEGAL ALIENS OR ANYONE ELSE FROM NATIONS LIKE MEXICO--NOTHING.

  8. Anonymous said..."Some neocons may like this but the dissolution of the state means automatically less democracy, this should be clear"!

    Wrong! It brings us MORE democracy! It has become increasingly clear to me that democracy (majority rules) leads to TYRANNY. When the 51% can render null and void the voices of the 49% THAT is tyranny! This is why the neocons want to spread democracy! This country was founded as a Constitutional Republic NOT a democracy. Remember......"I pledge allegiance to the flag and to the REPUBLIC for which it stands"!

  9. OK so this economic system collapses. What will replace it? Will it be a similar system that does the same thing but marketed differently? All fiat currencies has collapsed but that doesn't mean that fiat currencies will not be continued in the future. Sure it dies, but it just gets replaced by another one and the cycle continues. The economic system collapsing is inevitable, but are we smart enough to replace it with something without an inherent designed self destructive debt based system that we are under currently?

  10. I am Californian though I don't reside there at the moment.

    I understand the frustrations in regards to the illegal immigration fiasco in this country. Frankly, as a Californian, I understand the exasperations over LEGAL immigration, which is largely a function of the extreme NUMBERS (of legal immigrants) involved.

    However, to simply blame Mexicans for the collapse of California is to absolve the banksters.

    Did Mexicans write the $600 TRILLION in derivatives that now threaten the entire planet?

    Did Mexicans swindle American taxpayers to the tune of $14 TRILLION in bailouts?

    How many of the banksters on Wall St you suppose are Mexican or even Mexican-American (US born)?

    If every Mexican in the US (legal or otherwise) were deported today, would that absolve us of the privately owned "Federal" Reserve albatross?

    Don't you realize the banksters would love nothing better than to have the American public blame Mexicans or anyone else besides them?

    Matt Taibi has written a must read piece on the the real culprits of this economic crash.

    Ron Paul REVOLUTION is the only solution!

  11. Anonymous 7:26 hit it squarely on the head!

    We are a constitutional republic! NOT a democracy.

    We need to spread the word to EVERY AMERICAN we know, and let them understand the difference between the two, Because you know the likes of our public school system damn sure ain't going to spread the word.

    This July 4th, I will gather the family around (30+ people) and read to them the declaration of independence, discuss it's true historical meaning, and then continue on with the bill of rights and the following amendments. If anyone else decides to do the same thing, remember to let your family know they are not actually individual "rights" per se, but they are "shall nots" I.E. the government "shall not" infringe upon our right to firearms, etc. If you explain it as things the government CANNOT do, rather than things your ALLOWED to do, it puts it in a better perspective.

  12. The State of California (Federal) should borrow the money from California State (State).

  13. California has been living beyond it's means for many years now. The state and the rest of the country needs to learn how to live within their means.

  14. The correct-correct term is Gross Regional Product.

  15. The amount of money spent on useless things is incredible. I've always been shocked with the numbers and stats that come out of the US, same with CA. I mean the state is running a deficit of some $24.3bn. That's just ridiculous, someone needs to learn how to handle money.

    Take care, Jay

  16. I believe this is all about Gov't control. Or rather one world order control. Seems like the poor decision making of world leaders is not infact poor decisions by mistake. These steps taken are cold and calculated to take away power and wealth of the ordinary people. A subtle consolidation of power to fewer and fewer people. Its much easier to control a stressed out population with definite limits in movement and aquisition of resources. Low self esteem or depression(financially or mentally) makes for a easy target to kick whilst down. Just 2 cents, thats all...

  17. California may be # 7-10 in terms of current exchange rates, but in terms of PPP (Purchasing Power Parity), it is much smaller than India, Russia, and Brazil.


→ Thank you for contributing to the conversation by commenting. We try to read all of the comments (but don't always have the time).

→ If you write a long comment, please use paragraph breaks. Otherwise, no one will read it. Many people still won't read it, so shorter is usually better (but it's your choice).

→ The following types of comments will be deleted if we happen to see them:

-- Comments that criticize any class of people as a whole, especially when based on an attribute they don't have control over

-- Comments that explicitly call for violence

→ Because we do not read all of the comments, I am not responsible for any unlawful or distasteful comments.