By Nicholas Contompasis
Governor Jerry Brown of California has found a way to balance the massive billion dollar debt of his state by approving a near one hundred billion dollar bullet train from San Francisco to Los Angeles.
Brown will very soon float bonds to borrow three to five billion dollars from private investors and portfolio managers. This money should go to the train, but of course it won’t.
Expect him to redirect this money into the state’s general fund where he will balance his un-balanceable budget. The U.S. Congress won’t backstop the state’s debt, so he came up with a scam to dope the general public by investing their money in a train that may never be built or could take decades to finish with overruns that could eventually reach into the hundreds of billions of dollars. California’s new bullet train will make the “Big Dig” look like a puddle.
Oh and by the way at the height of the real estate market California’s employee pension fund put nearly half of its portfolio into land, land that will eventually be bought by the state to build this train. Man, when the fix is in, the fix is in!!!