The Coming Economic Downturn!

State Senator Tom McClintock has been the fiscal voice of
reason in California politics for some time. He fought
Republican and Democratic Administrations alike…in his
almost solo effort “to stop the insanity of State over
spending”.

Below is his latest concern regarding the Governor’s
attempt to grandstand on the Global Warming issue:

McClintock foresees economic downturn

Global warming legislation tied to state’s fiscal weakness
By Rachel McGrath, Ventura County Star, October 4, 2007

State Sen. Tom McClintock painted a gloomy picture of California’s
economic future in a speech Wednesday and said Gov. Arnold
Schwarzenegger’s initiatives to combat global warming will make
the economic decline worse.

The Ventura County Republican, who was asked to speak on “the
state of the state” in his remarks to a noontime Rotary Club
meeting in Camarillo, told the audience that any discussion of
the state of California and public policy must include global
climate change.

“Last year, in the name of saving the planet from global warming,
California adopted the most radical anti-business legislation
in the nation,” McClintock said. “The impact of the governor’s
approach to global warming on the state’s economy is catastrophic.”

In response, Schwarzenegger spokesman Aaron McLear said the
Governor “is proud that California remains a worldwide leader
in reducing greenhouse gas emissions.”

A state law, the Global Warming Solutions Act of 2006 or Assembly
Bill 32, requires the state Air Resources Board to develop
regulations and market mechanisms to reduce California’s
greenhouse gas emissions by 25 percent by 2020.

AB32, co-authored by Democratic Assemblywoman Fran Pavley, was
signed into law by the governor a year ago. At that time, he
said the law “unquestionably” would be good for business,
including large, well-established businesses and small businesses
that will “harness their entrepreneurial spirit to help us
achieve our climate goals.”

On Wednesday, McClintock also attacked Schwarzenegger’s speech
last week at the United Nations, where the governor called for
global leaders to take more forceful action against greenhouse
gas emissions.

McClintock said that the governor, while at the U.N., admitted
that his policies in California wouldn’t solve the problem of
global warming and that he was trying to set an example.

McClintock told the audience that he believes that global warming
is a natural, and not a man-made, phenomenon.

“The planet is warming,” he said, “and global warming is happening
on all the other planets in our solar system. The threat comes
from the irrational reaction to this cyclical phenomenon from
policy makers in California.”

He accused policy makers of adopting “the Emperor’s New Clothes
approach” to science and the environment.

After a summer of stalled budget legislation and partisan gridlock,
McClintock said, California’s economy is in dire shape. “The state
runs the real risk of insolvency by the end of the current fiscal
year,” he said.

McClintock said mandated reductions in carbon emissions will
negatively affect a whole range of businesses from highway
construction to wineries, agriculture and food production.

He said electricity prices are set to rise as a result of banning
the use of power imported from coal-fired plants, and he predicted
that millions of acres of farmland will be turned over to producing
corn for ethanol production in order to meet the requirement that
all gas sold in California by 2010 must be 10 percent ethanol.

Among the lawmaker’s audience, some said they want to learn more
about state policies on global warming affecting the economy.

“I think that we had been moving toward having a very pro-business
environment in California,” said Pauline Malysko, who works for
a Camarillo-based software technology company. “That was our
expectation when the governor came into office and I’m afraid
that in this case, we weren’t considered and I do have an issue
with that.”

http://www.venturacountystar.com/news/2007/oct/04/mcclintock-
foresees-economic-downturn/

================================*McClintock hits the nail on
the head.

Add to this, the severe downturn in Real Estate Sales, the
Banking and Credit Crunch, the meltdown of the Equity Markets
and what you have here is about three more years that will be
required to dig ourselves out of shortfalls in budgets, pensions
and health benefits. This will especially hit the Public Employee
Sector that derives all its cash from the Public. Can State
Taxes be held in check for the foreseeable future? Very doubtful!
How will that affect California Business? Your answer has to be
the same as McClintock’s! The current estimate for a Real Estate
recovery is two to three years! The Assessor’s office is going to
be busy re-assessing down for a while!

The upside will be that there will be some good buys on “real
property” during this time and those that are looking for those
very special deals…should start to nose around right now.

We agree with McClintock on the “Corn oil for fuel”
debacle …which will only cause higher food prices and do
nothing but add a negligible production percentage. Why
politicians on boths side continue to push this straw dog
amazes us. We guess ADM and others have some very strong
lobbyists out there – that they are paying now or already
have paid!


About Ron & Anna Winship

Independent News Producers/Writers and Directors for Parker-Longbow Productions. Independent Programming which includes a broad variety of Political, Entertainment and Professional Personalities. Cutting Edge - a talk show...is the flagship of over 30 URL websites developed or under development. The Winships have been blogging for the Orange Juice since back when nickels had buffalos on them, and men wore onions attached to their belts, because it was the fashion back then.