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 to say that this is totally unacceptable.

Recent Posts

McMorris Rodgers Introduces Bill Expanding Service Opportunities for Disability Community

Washington, D.C. – Eastern Washington Congresswoman Cathy McMorris Rodgers (WA-05) reintroduced the Hannah Cvancara Service Act (H.R. 7405) to empower individuals with a non-service-connected amputation to serve the United States Armed Forces as medical personnel. This legislation was inspired by Hannah Cvancara, a Spokane resident who suffered a childhood amputation that disqualified her from serving […]

McMorris Rodgers, Cantwell Applaud Approval of Disaster Declaration for Spokane County Following Devastating Wildfires

Washington, D.C. – Today, President Joe Biden declared that a major disaster exists in Spokane County and ordered federal assistance to supplement recovery efforts in the aftermath of the Gray Fire and the Oregon Road Fire in August 2023. After the announcement, Eastern Washington Congresswoman Cathy McMorris Rodgers (WA-05) and U.S. Senator Maria Cantwell (D-WA) […]

Feb 15, 2024

McMorris Rodgers Helps Pass Bipartisan Bill to Block President Biden’s LNG Export Ban, Unleash American Energy

Washington D.C. – Today, Eastern Washington Congresswoman Cathy McMorris Rodgers (WA-05) helped the House of Representatives pass the Unlocking Our Domestic LNG Potential Act (H.R. 7176) to reverse President Biden’s American liquified natural gas (LNG) export ban. She released the following statement after the vote: “The President’s decision to impose a ban on new permits […]