Bond Ratings and Bailouts

Jim Pethokoukis with Reuters is calling attention to a recent analysis in the Boston Globe which suggests that one might be better off buying government bonds from the nation of Iraq than the State of California.   

This sounds ridiculous, but California and a handful of other states are on a path not dissimilar from Greece.  With no room left to tax or borrow Greece finds itself unable to continue to pay its government employees who are unwilling to accept that their generous pay and benefits are unsustainable.  California and several other states could find themselves in the same unstable situation should they not undertake major reforms.

Mona Charen discussed this problem earlier this month in the National Review contrasting New Jersey which is undertaking reforms as they are out of options and California where student protests are reminiscent of Greece.

I worry that California will be turning to the taxpayers of the other 49 states to prolong the spending binge that put them in their current predicament rather than looking to the New Jersey model for a way out. 

In related news: The nation of Greece via the European Union is coming to the U.S. hat in hand to bail them out.  I took to the pages of BigGovernment.com to say that this is totally unacceptable.

Recent Posts


Jun 14, 2024
Press

McMorris Rodgers Statement Remembering George Nethercutt

Washington, D.C. – Eastern Washington Congresswoman Cathy McMorris Rodgers (WA-05) released the following statement honoring former U.S. Representative George Nethercutt, who passed away today. “My heart is sad. George Nethercutt was a giant amongst men who served the people of Eastern Washington with honor and patriotism for a decade. George was a man of character […]



Jun 14, 2024
Press

House Approves McMorris Rodgers Priorities, Pay Raise For Troops in Annual Defense Package

Washington, D.C. –  Eastern Washington Congresswoman Cathy McMorris Rodgers (WA-05) today released the following statement after the House of Representatives passed the FY25 National Defense Authorization Act (NDAA), which included two provisions she wrote and a number of wins for servicemembers in Eastern Washington: “This year’s National Defense Authorization Act is a critical investment that […]



Jun 4, 2024
Press

McMorris Rodgers Announces 2024 Congressional Art Competition Winner: Hawwi Jebena from Spokane

Washington, D.C. – Today, Eastern Washington Congresswoman Cathy McMorris Rodgers (WA-05) announced Hawwi Jebena as the winner of the 2024 Congressional Art Competition from Washington’s Fifth Congressional District.  WINNER: “Manito Park” by Hawwi Jebena Hawwi Jebena’s acrylic painting, “Manito Park,” is the winner of the 2024 Congressional Art Competition for Eastern Washington. Hawwi attends Gonzaga […]