California as the bell-weather

California as the bell-weather

Many people look to California as the guide to how the course of government/politics in our country go.  Well, I think we should also look to them again in this latest new ‘achievement’:

Top 10 Most Likely to Default World Economies:

  1. Venezuela: CPD 56.26%, credit rating BB- negative outlook
  2. Ukraine: CPD 52.91%, credit rating CCC+ stable outlook
  3. Argentina: CPD 46,06%, credit rating B- stable outlook
  4. Pakistan: CPD 38.11%, credit rating B- stable outlook
  5. Republic of Latvia: CPD 30.47%, credit rating BB negative outlook
  6. Dubai UAE: CPD 25.71%, credit rating BB+ negative outlook
  7. Iceland: CPD 24.66%, credit rating BBB- negative outlook
  8. Lithuania: CPD 19.11%, credit rating BBB negative outlook
  9. California, USA: CPD 18.97%, credit rating BAAA1, stable outlook
  10. Greece: CPD 18.67%, credit rating BBB+

That’s right folks – guess what all those years and years of overspending has left California.  Not only perpetually in financial trouble – but now on the top 10 list of “most likely to default” on their debt in the WHOLE WORLD.  This is likely to see them having much more trouble borrowing money, as well as raising the interest rates they get when borrowing money.  It’s the first real sign that American debt is no longer a safe haven.  And when that ball rolls, you can and will likely see trillions of dollars leaving US debt.  The change could be catastrophic.

I know I harp on this all the time – but I honestly see this coming for our whole country – a country of debters that slowly slips into the ‘poor’ credit rating.  What does this mean?  The only way the government can pay bills is by raising taxes and/or devaluing its currency like many other countries on this list.  I’m personally getting ready for astronomical taxes and high inflation in my old age – and am planning my retirement accordingly.  Mostly by moving a larger portion of my retirement out of the US to places that are seeing growth, and switching from traditional IRA’s to max out my Roth’s much more.  Roth IRA’s already have their taxes taken out; and will be tax-free for me when I retire.

So, if you want to see where our country will be in about 10 years – look to California.

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