California, increasingly pulled down by its unsustainable social welfare system, heavy legislative and regulatory burden and exploding Third World population, is going bankrupt – one city at a time, it seems. The latest city to go belly up is San Bernardino. RT America reports on the decline of the once-Golden State:
With more than $1 billion in debt, California’s San Bernardino filed for bankruptcy on Wednesday. The city, which is the third in the state to go bankrupt in five weeks, blames its economic catastrophe on the 2007 housing crash.
The bankruptcy filing states that the city has between 10,001 and 25,000 creditors and owes “more than $1 billion.” It disclosed a 30 percent shortfall in the city’s budget – $46 million.
San Bernardino is California’s third city to file for bankruptcy protection in the past two months, following Stockton and Mammoth Lakes.
The filings come at a time when California cities are struggling with rising pension costs and growing unemployment. San Bernardino currently has $195 in unfunded pension obligations, $61 million in unfunded retiree healthcare and $40 million of workers compensation.
“Just by looking around you can see that the city is going down,” small business owner Marcus Nelson told the Associated Press. “On this block there’s only three business – [mine] and two other pawn shops.”
…[O]ther cities in the state are also in deep fiscal trouble. In July, the mayor of Compton, a small city outside of Los Angeles, asked state auditors to investigate unspecified “waste, fraud and abuse of public monies.” Financial officials predict it could file for bankruptcy within the next month.
Auditors are also worried that Victorville, California could go down the same route.
The description of San Bernardino as being Third World is entirely accurate. Prior to the Immigration Act of 1965 which opened the flood-gates to the Third World, this was an entirely different city. According to the 2010 Census, the city is now just 19% White (down from 65.6% in 1970). A full sixty percent of the population is Hispanic. It should also be noted that 75% of San Bernardino’s budget goes to public safety agencies. Government has long been the largest and fastest-growing employer in the city, signaling big problems. San Bernardino is the poorest city of its population size in California, and the second poorest in the US next to Detroit. Mayor Pat Morris (D) says the city may be forced to dissolve its fire department or part of its police force.
In other news, the US continues to spend $300 million a day occupying Afghanistan.