CAIVP > crisis

crisis
READ OUR LIPS - NO NEW TAXES!

As Governor Arnold Schwarzenegger calls for raising taxes to solve our budget mess, a voice in the woods is calling for spending cuts rather than tapping into California's already highly taxed income.  From the Sacremento Bee:

Gov. Arnold Schwarzenegger and the Democrats who dominate the California legislature agree the state needs to raise taxes to help stave off billions in budgetary red ink. But the governor faces a roadblock in his own party, Republican Assemblyman Mike Villines.

Mr. Villines (pronounced Vuh-LINES) is leader of the state Assembly's Republican caucus, which, with just 32 of the legislature's 80 members, has little power to set the agenda. Political observers here like to joke that the Republican caucus, along with its counterpart in the Democratic-led state Senate, holds real sway only two times a year -- when the state's budget is being set and during the legislative softball game.

Read the Full Article Here

Teaser: 
A voice in the woods is calling for spending cuts over higher taxes.
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world_map-

A few days ago, we reported that Gov. Schwarzenegger organized a lavish conference with world leaders on environmental concerns. Now, the Sacremento Bee reports that several California lawmakers are attending conferences all over the world.  Yet, CAIVP has just received exclusive inside information that California is facing a budget crisis, leaving us pondering: where are our leaders and what are they going to do about our money problem?  From the Bee:

More than a dozen state lawmakers have missed much of the special legislative session called to tackle the state's fiscal mess, instead traveling to India, China and Hawaii to learn about education, high-speed rail and dams.

The legislators include Sen. Denise Moreno Ducheny, D-San Diego, who chairs the Senate Budget Committee, and several Assembly Budget Committee members who missed a hearing on the crisis on Friday. At least two of the lawmakers are not expected to return by Sunday's planned floor sessions of the Senate and the Assembly, their staff members said.

"Obviously, they're not taking the problem (the state's budget mess) as seriously as the rest of us," said Barbara O'Connor, director of the Institute for the Study of Politics and Media at Sacramento State University. "It's an acute financial situation for the state. I wouldn't be out of the country when I'm supposed to be solving this problem."...

Read the Full Article Here

Teaser: 
Lawmakers attend conferences rather than deal with the budget.
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Economic Stimulus Package Cartoon

When Jonn McCain and Barack Obama rushed back to the White House prior to the election to make sure the $700 billion dollar bailout plan succeeded, many Americans where understandably concerned about the implications of such a consolidation of financial power and wealth.  Little did most Americans know how quickly bailout spending would spiral out of control.

Congressmen and Congresswomen from all over the country received thousands and thousands of signatures and e-mails from citizens pleading for congress not to pass the bailout plan. Arguing that the bailout was a necessary evil, our politicians asserted that they knew better about finances than their constituents.  Now, with the stock market continuing to drop, automakers lining up for their one bailout, and an astronomical budget deficit, CNBC reports that the total bailout bill is already running at over 4 trillion, so far:

Given the speed at which the federal government is throwing money at the financial crisis, the average taxpayer, never mind member of Congress, might not be faulted for losing track.

CNBC, however, has been paying very close attention and keeping a running tally of actual spending as well as the commitments involved.

Try $4.28 trillion dollars. That's $4,284,500,000,000 and more than what was spent on WW II, if adjusted for inflation, based on our computations from a variety of estimates and sources*.

Read the whole article from CNBC here 

Teaser: 
Little did most Americans know how quickly bailout spending would spiral out of control.
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postcard - California Agriculture

California’s Leading Role in Rehabilitating Our Nation’s Food System: As more Americans become further removed from the supply sources of their food, both in proximity and knowledge, they become less secure in its future procurement. This is because the current food system is wholly dependent on fossil fuels and petrochemical inputs; suffice it to say unsustainably. From growing – all of those 500,000 tons of toxic pesticides used per year are fossil-fuel based – to harvesting with large, labor replacing machines, to transporting produce the average 1,500 miles to point of sale, agribusiness runs on oil. It is estimated that some 100 billion gallons of oil are consumed annually to make and transport our food supply.

California is in a unique position to stem the tide by positioning itself as an exemplar in successful local food production and distribution systems. With proper policy on the municipal scale and cooperative sentiments in Sacramento and DC, it can be a model for food and thus economic security for the rest of the country.

We are now beginning to see the connection between inflationary fiscal policy and skyrocketing food prices. It wouldn’t be so bad if the rise in prices weren’t paralleled by a loss of farmland and topsoil to industrial interests at break-neck speeds. The once immanent specters of peak-oil and global warming will soon be replaced with the more immediate concerns of peak-water and peak-arable land. This new paradigm will bring with it its own haunting questions of future food security as a nation. Our agricultural policy is a house-of-cards that has just been exposed to the weather.

The global food cartel that has cropped up in the past few decades is a direct result of bad policy on a national scale. From “seedlings to supermarkets,” a handful of supranational corporations have a stranglehold on the nation’s food system. A sea change in the way America produces its food has occurred over the past sixty years. Prior to WWII, small farmers and ranchers dominated a food system built on local demands and catering to local distribution channels. After the war a petrochemical industry arose by way of war surpluses. Oil, being cheap, fueled a new industrial revolution, one that would decimate rural America and put most family farms out of business thanks to a complicit congress and huge subsidies that mainly benefited large industrial farmers. As the number of producers began to dwindle, and small holders increasingly consolidated into large industrial concerns, America became dependent on a centralized food system of an unsupportable scale. This system is disastrously vulnerable to collapse from a multitude of socio-economic and political factors since so many of them directly affect commodity prices on a world stage. Almost all of which are linked to the price of oil. What is needed is a return to smaller, more local and decentralized markets less affected by the spot price of oil and more influenced by consumer demand for healthy, sustainably grown food.

The global market concept of food production is especially burdensome for California and its large agricultural economy. According to the 2006 USDA agricultural census data, the state operates less than four percent of the nation’s farms and generating more than 13 percent of its commodities. It is the number-one agricultural producer with more farm cash receipts than the next two highest producing states combined. Roughly a fourth of the nation’s dairy products originated from California farms in 2006 while nearly half of all fruits, nuts and vegetables grown ‘domestically’ were grown in the state. By far the most diverse agricultural producer with more than 400 crop and livestock products, California owes this success to its generally long growing seasons and mild Mediterranean like climate. Unfortunately, about 40 percent of this bounty is exported to other states or abroad and approximately a quarter of the food consumed in the state is imported from foreign nations. This is so despite California’s theoretical ability to feed itself with its own homegrown food at current production rates.

In the coming days, I’ll be delving into the issue of California’s food security by first examining where we are as a nation on agricultural policy. After a clearer picture of the state of our national (in reality international) food economy emerges, we can take a cursory look at how we charted such a path. Finally, I will present practical steps (in many places already underway in California) that will build and reinforce a local food economy not vulnerable to the entropy of our current system.

Teaser: 
California’s Leading Role in Rehabilitating Our Nation’s Food System
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