Stephen Frank: California= Economic Collapse.

Hey I thought everything was all better with the economy now that Bernanke got through with the Great Printing of trillions of new dollars?  Not according so Stephen Frank who points out that Cally's debt is unpayable.

Not if but when folks.  There is no amount of clever manipulation that can fix this or its analog at the federal level.   There is no strategy, no plan, no calculation that can serve as a "get out of bankruptcy free" card.  All that is possible is to kick the can down the road using more debt to paper over past debt.  But even that grows impossible at some point as the public just gets madder and madder at its own crappy situation.

One or more of the following will most likely eventually happen:

• massive, broadspread civil unrest, kidnappings and targeting of officials, etc.
• government will just overtly take control of everything, nationalize corporations and their assets in order to spread their wealth around in order to provide bread to the people.
• government will just overtly try to take control of the people and enslave us, nationalizing our pensions and our bank accounts and our labor.
• the military will take over government as a dictatorship.
• the people will rise up spontaneously and begin a revolution.
• the de-unification of the United States a-la-USSR into "Russia + Stahns".

At least this is what history teaches us will happen in these cases.