Message to California and Washington: your credit card has been cancelled

July 6, 6:30 AMSF Politics ExaminerArthur Bruzzone

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The State of California and Federal government are approaching fiscal insanity.

The State of California's FICA score is probably 50. That’s being generous --- California’s credit card is overdrawn by $26 billion. They're issuing IOU's.

The Federal government’s FICA score is even lower, say, 35.  The Fed’s credit card is Over The Limit by $1.8 trillion dollars just this fiscal year.

Both the State of California and the U.S. Federal government would have their credit cards canceled if they were consumers. 

Millions of American consumers will see their minimum payments go up in the next 90 days, their credit limits decreased, or find their credit canceled. State and federal governments are actually expanding programs. 

Take the Obama health care proposal.  Even the neutral Congressional Budget Office estimates that it will cost a $1.0 trillion dollars over a ten year period.

“According to our preliminary assessment, enacting the proposal would result in a net increase in federal budget deficits of about $1.0 trillion over the 2010-2019 period.”

Fortunately a revolution is occurring within Obama’s own party.

From Kevin Hassett writing at Bloomberg’s website, “The key players in Washington are Senator Evan Bayh and 15 Senate Democrats who joined him this year in forming a coalition of moderates. One thing that has distinguished moderate Democrats from the garden variety of the species is heightened concern about fiscal responsibility.”

The American people are also waking up to their governments' madness.

A new Wall Street Journal/NBC News poll finds growing concerns about government spending. Nearly 60 percent said that the president and Congress should focus on keeping the budget deficit down, even if takes longer for the economy to recover.

And the latest New York Times/CBS News poll showed a substantial majority — six in 10 people — surveyed said the administration has yet to develop a clear plan for dealing with the deficit, including 65 percent of independents.

Credit is alluring.  The U.S.  --- consumers and governments alike --- were rattled last year by the collapse of the credit markets.

Now we are about to face the real crisis:  A contracting economy desperately needing business credit, crowded out by state and federal governments demanding the same.

Wall Street created junk out of sub-prime mortgages and was punished severely.

Our state and federal governments are about to see the results of spending over their credit limits --- and experience the wrath of the bank...being the American taxpayers.