Category Archives: California

The Great Exedous From California By Conservative Middle Class Is In Full Swing

California conservatives are fleeing the state in droves over what the LA Times describes as their “disenchantment with deep-blue California’s liberal political culture,” not to mention “high taxes, lukewarm support for local law enforcement, and policies they believe have thrown open the doors to illegal immigration.

Just over half of California’s registered voters have considered leaving the state, according to a UC Berkeley Institute of Governmental Studies poll conducted for the Los Angeles Times. Republicans and conservative voters were nearly three times as likely as their Democratic or liberal counterparts to seriously have considered moving — 40% compared with 14%, the poll found. Conservatives mentioned taxes and California’s political culture as a reason for leaving more frequently than they cited the state’s soaring housing costs. LA Times

Former Californians Richard and Judy Stark had no regrets as they left their Modesto home, towing a U-Haul trailer with their Volkswagen SUV 1,300 miles to Amarillo, Texas. After finding the website Conservative Move, the Starks put their home up for sale around six months ago and bought a newly constructed three-bedroom home in the suburb of McKinney for around $300,000. According to Stark, a similar home in California would cost around twice as much.

We’re moving to redder pastures,” said the 71-year-old. “We’re getting with people who believe in the same political agenda that we do: America first, Americans first, law and order.

According to new Census Bureau migration data for 2018, 691,145 Californians left for other states last year, according to the San Jose Mercury News.

Where they’re going (via the Mercury News)

• Top destinations: In raw terms of people moving, the top spot for Californians is Texas, which got 86,164 Californians in 2018. Next came Arizona (68,516), Washington (55,467), Nevada (50,707), and Oregon (43,058). All told, California had the most exits among the state and that wave grew by 4% in a year.

• Largest net gain: Texas also had the largest “net gain” from California — more ins than outs — with 48,354. Next was Arizona (34,846), Nevada (28,274), Oregon (19,008), and Washington (17,460).

• Greatest ratio of ins to outs: Or look at the comings and goings as a ratio of ins to outs.  Idaho wins this race with 497 arrivals from the Golden State for every 100 former Potato State residents who moved to California. Next was South Carolina (247 ins per 100 out); Texas (228); Nevada (226); and Arizona (203).

 

That said, the LA Times also notes that California is gaining people with higher incomes – most of whom have migrated to the Bay Area.

Over the last decade, the Legislative Analyst’s Office report said, the state added about 100,000 residents with household incomes of $120,000 or higher. About 85% of these higher-income earners moved to the Bay Area counties of Alameda, Contra Costa, San Francisco, San Mateo and Santa Clara. –LA Times

The three-member Bailey family moved from California to Prosper, Texas in 2017 to get away from Southern California’s steep housing prices. Bailey and her husband Scott owned a home in Orange County, while renting in El Segundo to be closer to Scott’s work in Santa Monica.

“To buy a house there [El Segundo] is insane,” said Marie. “It’s like $1 million. Why are we working our butts off for a fixer-upper in El Segundo? We’re just working, working, working — and for what?”

Bailey launched a Facebook group for people struggling with the same problems –Move to Texas From California!“, which boasts over 14,000 members. She says that most members are conservatives like her, though not all. As such, one of her rules is “no insulting or going overboard with political conversations.”

“I wouldn’t be one to put up a Trump sign, even here,” said the 40-year-old Bailey. “But in your town Facebook, people would be like, ‘We know who the Trump supporters are.’ I had friends who voted for Trump and went to work the next day and pretended they didn’t.”

Bailey says she helped around 40 families migrate to Texas over the last year.

“There are hundreds more who made the move who didn’t use my real estate services but are in the group,” she said. “Tons and tons of families are moving all the time. People are posting photos of their families waving goodbye.”

Nicole Rivers and her husband put their Clovis home on the market in April, and hope to close escrow soon. They plan on flying to Texas to look for a place to rent in the eastern part of the state, near Tyler, coming back to California and then driving to their new home.

Rivers, who recently quit her job as a medical assistant and phlebotomist, said the cost of living is so much lower in the Tyler area that she can afford to stop working and dedicate herself to being a stay-at-home mom.

Her husband works in the oil fields, she said, and was already splitting his time between his job in Pennsylvania and family in California. When he had the chance to transfer to Texas full time, they jumped on it.

The 37-year-old said she wants to live in a town where the family can save money and her husband can retire sooner.

It’s just too expensive here in California,” said Rivers, a California native. The state’s politics have “really gotten out of hand,” she added. She doesn’t support the state’s restrictive gun laws, she said, or the controversial sex education framework California approved despite protests earlier this year.LA Times

Between earthquakes, seasonal fires, high taxes, poo-covered streets, the worst homeless crisis in the nation, and transgender summer camp for children as young as four, what’s not to love?

… and, sentiment expressed in this article is not alone…

‘Get Your Act Together’: Trump Threatens To Pull Federal Support As California Fires Rage

California Governor Asks AG To Investigate High Gas Prices, But Not ‘Mystery State Surcharges’

California Is Teetering On The Edge Of Financial Ruin Again

Nearly Half Of America’s Homeless People Live In California

Large Swaths Of California Now Too Wildfire Prone To Insure

Courts Finally Force California To Repay $331 Million Stolen From Mortgage Relief For Homeowners

“California Is Being Overrun By Rodents” – And We’re Not Talking About The Politicians

Orange County California Q1 Home Sales Off To Coldest Start Since Great Recession

California’s Housing Bubble’s So Bad, 100s Forced To Live On Boats

Federal Railroad Administration Cancels $929 Million In California High Speed Rail Funds

Millions Of Californians Will “Plunge Into Darkness” As PG&E Commits To Cut Power During Wildfire Season

What Happened To The $1 Billion Tax Revenue Expected From Licensed Marijuana Sales In California?

Proposition 13 Is No Longer Off-Limits In California

Southern California Home Sales Plunge 12% In November As Prices Peak

California Faces Pension Showdown

C.A.R. Report: California Housing Market Sputtered In November

Home Builder Toll Brothers Shocks With 13% Plunge In Orders As California Falls A Staggering 39%

Yet Another Unfunded Trillion Dollar Liability, California Wildfire Damage

California Tops National Poverty Rate As Prime Tax Donkey Demographic Plans “Exodus” From State

Crisis Level: California’s Housing Affordability Plummets To 10-Year Low

California Gained Just 800 Jobs In June; Unemployment Remains At Record Low

Cesium-137 From Fukushima Found In California Wine

California Become 3rd Largest State with More People leaving than Migrating to the State

California Officials Avoid ‘p-word’ When Selling Higher Taxes to Voters

It’s Now Against The Law In California To Shower And Do Laundry On The Same Day

California Residents Flee, Chased Away By Soaring Home Prices And Cost Of Living

California University Tuition Going Up For Everyone EXCEPT Illegal Alien Students

Californians Flee The State In Droves Over Taxation And Housing Costs

California Law Makers Want Businesses To Hand Over Half Their Federal Tax Cut Savings

California Cities Spiking Taxes to Pay Spiking Pension Costs

California Moves One Step Closer To “Mileage Tax”; Could Require Tracking Your Cell Phone Movements

Required Pension Contributions of California Cities Will Double in Five Years says Policy Institute: Quadruple is More Likely

California Renter Apocalypse

Affordable Housing Plan Slaps Fee on California Property Owners

California Senate Bill 1: Expand Eminent Domain to Create “Sustainable Communities”.

CA Governor Newsom Blames Texas For CA Policies That Caused CA’s Homeless Crisis

Chief Investment Officer of Largest US Public Pension Fund Has Deep Ties to Chinese Regime

‘They Waited For Failure’: Report Exposes PG&E’s Inability To Replace Equipment That Sparked Deadly Wildfire

CA Voters Not Happy With Free Medical For Illegals

Developers Are Pulling Out All The Stops Amid Los Angeles’ Mega-Mansion Glut

Young Real Estate Flippers Get Their First Taste of Losing

Mapped: The Salary Needed To Buy A Home In 50 U.S. Metro Areas

Americans Can’t Afford To Buy A Home In 70% Of The Country

Guess How Much Americans Spend Drunk Shopping Online?

Source: ZeroHedge

‘Get Your Act Together’: Trump Threatens To Pull Federal Support As California Fires Rage

As Californians grapple with this year’s annual fire season, President Trump has a message for Democratic Governor Gavin Newsom; clean up your act.

“The Governor of California, @GavinNewsom, has done a terrible job of forest management. I told him from the first day we met that he must “clean” his forest floors regardless of what his bosses, the environmentalists, DEMAND of him,” Trump tweeted on Sunday.

Trump then threatened to withhold federal money, which California receives every time they declare a state of emergency.

“You don’t see close to the level of burn in other states…But our teams are working well together in putting these massive, and many, fires out. Great firefighters! Also, open up the ridiculously closed water lanes coming down from the North. Don’t pour it out into the Pacific Ocean. Should be done immediately. California desperately needs water, and you can have it now!”

California state Senator Mike McGuire tweeted “Total crap” in response to Trump, claiming that “Approx 57% of CA’s forest land is owned by the Fed Gov’t. Only 3% is owned by State/local gov’t. THE FEDS HAVE CUT their forest budget by hundreds of millions.”

After more than a week battling around a dozen blazes throughout the state, fire crews have most of the incidents over 70% contained, according to the California Department of Forestry and Fire Protection. That said, first responders have been slowed down by reports of drones being operated in their airspace.

Two separate instances of drone flights disrupted water-dropping helicopters from attempting structure protection in the nearby city of Santa Paula, Ventura County Fire Department spokesman Mike DesForges said.

The helicopters had to set down for 30 to 40 minutes each time,” DesForges said. “The drones are difficult to see and they can be pushed by winds very easily. If they strike one of our helicopters, they could cause it to crash, and if not, we would still need to land that helicopter to perform repairs.” –NPR

On Thursday night, the Maria Fire broke out near the cities of Ventura and Oxnard to the north of Los Angeles. It is currently 50% contained after burning around 9,400 acres. Following the new blaze, Newsom expanded the state of emergency in Sonoma and Los Angeles.

Maria fire (circled)

To the north, the Kincade Fire in Sonoma County has burned over 77,000 acres and is 76% contained. Over 4,500 fire personnel battled the blaze east of Geyserville.

“They’re still doing a lot of work in those hot spots, and there are still a lot of utility workers in there trying to get services restored,” said Cal Fire spokesman Cleo Doss. “We’re trying to help the people who have already been released get back into the area.”

According to the San Francisco Chronicle, evacuation orders have been lifted for all but a few locations affecting 1,500 people. During the height of the fire, around 185,000 people were evacuated. The fire has destroyed 372 structures, including 175 homes. Four first responders sustained non-life threatening injuries.

California Governor Asks AG To Investigate High Gas Prices, But Not ‘Mystery State Surcharges’

In addition to earthquakes, wildfires, power outages and an army of pooping homeless people, California is known for ridiculously high gasoline prices – thanks in part to the state’s notoriously exorbitant taxes.

And in the wake of $6.00 gasoline in some parts of the state, Governor Gavin Newsom has asked Attorney General Xavier Becerra to investigate “If oil companies are engaging in false advertising or price fixing,” according to KCRA, after a new report suggests that big oil companies are overcharging customers by as much as $1 per gallon. 

Name brand retailers – including 76, Chevron and Shell – often charge more because they say their gasoline is of higher quality. But a new analysis from the California Energy Commission could not explain the price difference, concluding “there is no apparent difference in the quality of gasoline at retail outlets in the state.”

The commission said California drivers paid an average of 30 cents more per gallon in 2018, with the difference getting as high as $1 per gallon in April of this year. The result is California drivers paid an additional $11.6 billion at the pump over the last five years. –KCRA

That said, according to an April report in the Orange County Registerat $4 per gallon, approximately .98c of it is due to various taxes and fees. 

  • Federal excise tax — 18 cents
  • State excise tax — 42 cents
  • State and local sales tax — 8 cents
  • State underground storage tank fee — 2 cents*
  • Additional costs for compliance under Cap & Trade, as well as the Low Carbon Fuels Standard— 28 cents
  • Total — 98 cents

* Note: The state and local sales tax is calculated at an average state sales tax rate of 2.25% percent although actual sales tax rates vary throughout California.

That said, “Severin Borenstein, a professor at UC Berkeley’s Haas School of Business and faculty director of the Energy Institute at Haas, said his own tax calculations came within a penny of that total. But the mystery surcharge — an added expense that has yet to be identified — has averaged 28 per cents a gallon from January through March of this year. When added to the taxes, that brings the total to about $1.26 a gallon,” according to the report.

“In January, a group of 19 state legislators sent a letter to the California Attorney General’s Office saying, ‘We want you to investigate this,’” said Borenstein, who added. “They have never replied. They said they don’t make public statements about investigations. We don’t even know if they are investigating it.”

So while California’s AG has been asked to investigate false advertising and price fixing by the oil companies, Newsom’s letter is devoid of any request to look into the mystery surcharge found by Borenstein.

Source: ZeroHedge

California Is Teetering On The Edge Of Financial Ruin Again

For years, it had been speculated that California’s state-wide model of heavy regulation, expensive education, high taxes and bloated spending would eventually drive the state into financial ruin, according to a new Bloomberg Opinion piece. Over the last 15 years, the state also has had to deal with widespread blackouts and an unemployment rate that ballooned to 12% after the financial crisis.

After deficits exploded under Governor Schwarzenegger, the state eventually got back on track. Under Governor Jerry Brown, the state raised taxes again (surprise) and bumped up its sales tax. These tax hikes, combined with a recovery in housing and in the stock market, helped swing the state’s budget back into the black.

But now, the symptoms of larger problems in California are bubbling to the surface yet again. For instance, the recent “planned blackouts” by power provider PG&E to try and prevent wildfires are indicative of a crumbling energy infrastructure across the state.

Losses from recent wildfires in California have been “staggering”, totaling upwards of $400 billion in 2018. This figure represents about 1/7th of the state’s total GDP and is comprised of health costs, lost property, lost jobs and asset prices falling. It also takes into account migration out of the state. 

PG&E has said that the “safety” blackouts will continue, which means that the state isn’t going to have reliable year-round electricity. This will inevitably take its toll on property values and slow migration inflows into the state. 

While wildfires rage across the state, another issue is plaguing California: homelessness. The state’s homeless population has increased by 5.3% from 2010 to 2018. California is already home to almost half of the country’s homeless. We have documented, at length, the homelessness issues in areas like San Francisco, where the epidemic is reaching a fever pitch. 

At the same time, government pension costs are rising across the state; faster in California than in the rest of the nation. The cost saving measures being put in place to offset this problem are degrading the state’s education system. 

And so, the inevitable has happened: people are leaving the state.

In fact, a recent paper by economists Joshua Rauh and Ryan Shyu found that out-migration of top-bracket taxpayers accelerated after the state’s 2012 income tax hike. 

“Among top-bracket California taxpayers, outward migration and behavioral responses by stayers together eroded 45.2% of the windfall tax revenues from the reform,” the paper’s abstract says. 

With Democrats back in the saddle, holding a super majority in the state, California seems doomed to repeat its dysfunctional history from the early 2000’s. Making matters worse, an initiative called Proposition 13 is making it difficult for California to alleviate its burdens by raising property taxes, the op-ed notes:

But California’s political system is making it hard to respond to these pressures. Thanks to a 1978 ballot initiative called Proposition 13, California cities have stringent limits on raising revenue from local property taxes. That forces the state to provide many services, financing them with hefty income taxes. Those are inherently more unreliable than property taxes, since wealthy taxpayers can move away (while property can’t move), and since California’s income taxes fluctuate a lot because they depend so much on the profits residents earn on volatile stock prices.

“Proposition 13 must be repealed, and property taxes raised,” the piece continues, in order for the state to avoid what it calls another “dark path”. It also suggests that the state legislature pass bills to allow greater housing density and more construction throughout the state.

Only time will tell whether these proposed solutions, if implemented, would even work. But one thing is for sure: if California doesn’t do something soon, the state could become (further) living proof that creating a liberal utopia by hiking taxes and adding regulation is nothing more than a pipe dream, if not a full blown recipe for exactly how to drive an economy into the ground. 

Contrast with SoCal, early 1950’s…

 

Pod People – The Future Of Housing In America’s ‘Sharing’ Economy

Urban millennials are shelling out half their income to inhabit pods in decaying mega cities.

For the low-low price of $1400/month, you can live in Venice Beach at a PodShare

Away from the glossy PR, it doesn’t look so great…

No privacy, no pets, no family.

Cheek by jowel with other pod-dwellers on prison-style bunk beds.

Forced to live like ants in colonies because none of them can afford to buy a home anymore.

As Paul Joseph Watson explains in his inimitable way, millennials are “living the dream!

*  *  *

Of course, images of ‘pod people’ sparked a large response from the twitterati as the scenes reminded them of horrors from the past…

 

Although it beats this…

Source: ZeroHedge

Nearly Half Of America’s Homeless People Live In California

Not only do nearly half of America’s homeless people live in California, but four of the five American cities with the greatest incidences of un-sheltered homelessness are in the Golden State.

As California becomes a mecca for socialism, their quality of life diminishes along with it in a characteristic dystopian decline.

San Francisco, Los Angeles, Santa Rosa, and San Jose are four of the five cities with the highest amount of homelessness. Seattle joins the California municipalities in the top five. According to Market Watch, the rates of homelessness are the highest in Washington D.C. The District of Columbia’s homeless rate is at 5.8 times the United States rate. New York is next, followed by Hawaii, Oregon, and California. These five states together comprise 20% of the overall U.S. population but 45% of the country’s homeless population.

All of these states are incredibly liberal with several already having instituted tight socialist policies.

A White House report teased out certain trends in homelessness across the country. Communities along both coasts have much larger homeless populations than those in the middle of the country. One driver of this trend is likely the more notable rise in housing prices along the coasts than in much of the Midwest.

The White House report identified local laws and policing practices as a potential differentiator. “Some [states] more than others engage in more stringent enforcement of quality of life issues like restrictions on the use of tents and encampments, loitering, and other related activities,” the report noted.Market Watch

The Trump administration has floated plans to fix the homeless crisis in liberal areas by deregulation. Many states and municipalities have zoning rules regarding the construction of both single-family and multi-family homes. These laws have impeded the builders’ ability to meet the demand for housing resulting in scarcity which has driven up prices. Experts and politicians across the political spectrum have suggested that relaxing such regulations could provide a boost to building activity.

First Ever Triple Bubble in Stocks, Real Estate & Bonds – With Nick Barisheff

We are living in an age of records in the financial world. The stock market is in its longest bull market in history and near all-time highs.  The world has more debt than ever before while interest rates are near record lows, and some are negative in many countries for the first time ever.  Nick Barisheff, CEO of Bullion Management Group (BMG), is seeing a dark ending for the era of financial records. Barisheff explains,

“I have been in the business for 40 years, and this is the first time we have had a simultaneous triple bubble, a bubble in real estate, stocks and bonds all at the same time.  In 1999, it was a stock bubble. In 2007, it was a real estate bubble. This time, we’ve got a triple simultaneous bubble.  So, when we have the correction, it’s going to be massive. Value calculations on equities say it’s worse than 1999, and in some cases worse than 1929. The big problem is this triple bubble is sitting on a mountain of debt like never before.”

What is going to be the reaction to this record bubble in everything crashing?  Barisheff says, “I think you are going to be getting riots in the streets.  It’s already happening in California. CalPERS is the pension fund administrator for a lot of the pension funds in California. So, already retired teachers, firefighters and policemen that are sitting in retirement getting their pension checks all got letters saying sorry, your pension checks from now on are going to be reduced by 60%.  How do you get by then?”

What happens if the meltdown picks up speed and casualties?  Barisheff says,

“I think the only option will be for the government is to print more money and postpone the problem yet a little bit longer, but that leads to massive inflation and eventually hyperinflation.  Every fiat currency that has ever existed has always ended in hyperinflation, every single one.  Since 1800, there have been 56 hyper inflations. Hyperinflation is defined as 50% inflation per month.  That’s where we are going and what other choice is there?”

So, what do you do?  Barisheff says,

“In the U.S. dollar since 2000, gold is up an average of 9.4% per year. In some countries, it’s up 14% and so on.  If you take the overall average of all the countries, the average increase is 10% a year.  Every time Warren Buffett is on CNBC, he seems to go out of his way to disparage gold, but if you look at a chart of Berkshire Hathaway and gold, gold has outperformed Berkshire Hathaway. . .  Everybody worships Warren Buffett as the best investor in the world, and gold has outperformed his fund in U.S. dollars.  I would not disparage gold if I were him. I’d keep quiet about it.”

There is a first for Barisheff, too, in this financial environment.  He says for the first time ever, he’s “100% invested in gold” as a percentage of his portfolio.  He says the bottom “is in for gold,” and “the bottom is in for silver, too.”

Barisheff contends that with the record bubbles and the record debt, both gold and silver will be setting new all-time high records as well in the not-so-distant future.

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Nick Barisheff, CEO of BMG and the author of the popular book “$10,000 Gold.”