The Disaster of California

They saw it coming and did nothing.(And this was the optimistic forecast)

The California disaster, a clear foreshadow of Obama's affect on America has been one of the greatest disgraces in modern American political history. In a nutshell various special interests within the state have a stranglehold on the Democratic party and have consistently prevented cuts or reform, and who suffers average Californians and small business owners:

NEW YORK (CNNMoney.com) -- As if struggling to stay afloat during a faltering economy isn't difficult enough, hundreds of small business vendors that rely on contracts with California are facing another hurdle: There's a good chance the state won't be paying any of their invoices this month.

After the state legislature failed to agree on budget solutions earlier this month to close a $26 billion gap, California started issuing IOUs for a variety of payments it owes -- including most of its vendor bills, personal income tax refunds, and funding for local governments. "This means that the state is casting off its cash-flow problems onto hundreds of families and small businesses in California," says Jacob Roper, a spokesman for the state controller's office.

So far, California has mailed $354 million worth of IOUs and plans to issue a total of $3 billion by the end of July. Around $140 million of the warrants are expected go to small business owners. While the state controller's office won't say exactly how many small companies will be hit, it's likely to be a big number: The state's department of general services says it holds $2.7 billion worth of annual contracts with at least 14,000 small companies, most of them California firms.

The I.O.U. scam is an outrage and is any wonder events have degenerated to the point that succession from the state is openly discussed. With the credit rating slashed and banks balking at accepting the I.O.U's indefinitely this is not a sustainable position. As for the left they have put themselves in denial of events and claim that raising taxes is the only solution, of course that will only put a nail in the coffin of the state.