I wrote:
The only significant export drivers bringing income into the State which aren’t dependent on the government spending or the following are: Professional & Business Services and Information. Which are essentially both tied into computers, networks, and automation technology. Which together comprise ~25% of the GDP.
https://www.statista.com/statistics/304869/california-real-gdp-by-industry/
Decentralized ledgers are going to significantly disrupt Silicon Valley and spread the work around the globe:
http://degoes.net/articles/blockchain-stack (see my comments at the end)
Trump’s new tax plan removes much of the deduction for state income taxes, so blue states can’t in effect charge the federal government for their high taxes and socialism, as the middle and upper middle class will be more financially motivated to leave for a 0% income tax state.
When the government spending collapses due to the coming sovereign debt and pensions crisis:
@anonymint/global-contagion-of-bank-failures-coming
Then the other sectors of Californification’s economy will decline. The contagion/confluence will envelope into a Minsky Moment self-reinforcing spiral of decline into the economic abyss.
The coming Maunder Minimum (2020 - 2040) and it’s confluence with major earthquakes and volanic eruptions which is already creating disruptive climate and natural disaster outcomes will likely worsen:
https://www.google.com/search?q=site%3Aarmstrongeconomics.com+maunder+minimum
California may break apart into politically autonomously governing regions as it descends into Mad Max chaos.
https://www.armstrongeconomics.com/history/americas-economic-history/currency-v-language/
The following chart shows a mass exodus from Californication:
Armstrong wrote:
State Senate President Pro Tem Kevin de León, D-Los Angeles, proposed to set up a state charity named the California Excellence Fund which would allow taxpayers to donate to it get a 100% credit on state income taxes. Since Trump’s federal taxes doesn’t impose limits on charitable deductions, the scheme would, in theory, allow Californians to lower their federal tax obligations while paying the same amount in state taxes. [thus attempting to tax dodge Trump’s intent to defund the blue States with high taxes]
click to zoom
De León’s tax dodge may be legal, but it might not be for long:
The whole mess is likely headed for court, giving California politicians many months or years to posture and rant about “resistance.” Meanwhile, beleaguered taxpayers continue to suffer under the highest state taxes in the country, and all state lawmakers are doing about it is giving them sketchy tax advice.
RE: Global Contagion of Bank Failures Coming…