The country is in a recession. California has been hit particularly hard, with our situation being exacerbated by the poor housing market, and also being that we are the home to significant areas of wealth creation, such as the Silicon Valley. The poor economy has been very difficult for people. Many that had jobs now find themselves unemployed, and a good number of those still employed have had to suffer pay reductions or cut-backs in hours. The worsening of the economy has necessarily led to a significant reduction in tax revenues to state and local governments. If people are making less money, they are paying less in taxes – and if you aren’t making money at all, chances are you are not only paying no taxes, but are actually taking a government subsidy of some sort.

It is not rocket science to figure out that the number one priority for everyone should be economic recovery. When our economy is humming along once again, it will mean an increase in everyone’s standard of living – and it will also increase tax revenues to governments. The bad news for the liberals running the State of California is that the two things that state government can do to… Read More

Regular readers know that I am not surprised by the failure of the 12 members of the “Super Committee” to come up with an agreement for $1.2 trillion in deficit reduction over the next 10 years. But, I am surprised that Speaker Boehner and Senate Majority Leader Reid did not come up with something. Now, because there was no agreement, the so-called “sequester” or automatic cuts are scheduled to become law on January 1, 2012, although the cuts do not actually begin to occur until one year later.

So, you might ask, what happens next? Because of the 23 Senate Democrats who are up for reelection next year, the Senate majority is extremely risk averse. They literally seem as though they don’t want to vote on anything with any controversy for fear that either a yes vote or a no vote will cost them popular support at home. Dozens of bills that have passed the House, some by large bipartisan majorities, have not and apparently will not even be considered in the Senate. So, it looks like nothing much is going to happen in dealing with the deficit for some time to come, right?

Actually, not right. Congress has become even more… Read More

One of the questions that I get most frequently from media reporters about the 2012 elections in California is whether or not Republican can defeat incumbent United States Senator Dianne Feinstein. Knowing that Feinstein’s polling numbers have been the lowest of her career, my response has always started with the quip, “Not if we don’t have a candidate.”

Elizabeth Emken may have the answer. This former National Vice President for Autism Speaks has been quietly assembling a campaign infrastructure and preparing for a run against the incumbent of nearly twenty years.

I first came across Emken as a candidate for the Republican for the GOP nomination for Congress in the 11th District, held by Democrat Jerry McNerney. While she didn’t win the GOP nomination in that race, she impressed me at the time.

My first opportunity to sit down with Emkin was at the California Republican Party’s Fall Convention this year in Los Angeles. I have to admit that I found her to be an impressive individual. While drive and determination won’t win you a U.S. Senate race, they are certainly two necessary qualifications — and… Read More

Longtime FlashReport friend Chris Reed, who wields a remarkably sharp pointed and witted pen, has returned to the blogosphere with his new blog, CalWhine.com. You should visit his site and bookmark it. Chris will be commenting on the passing political scene, and we will all be better for it! In his “day job” Chris works on the editorial team at the San Diego Union Tribune, and I actually first met Chris when he was working with the editorial team at the Orange County Register. I’m quite certain Chris would want me to make sure I mention that what he pens over at his own website is his own opinion, and not (necessarily) that of his employer.

You can be sure that our FR editors will be stopping by CalWhine and linking to great content. Below are a couple of headlines to stories that appear right now! — CalBuzz — Unsophisticated And Lazy? — Damned Right and Status Quo-Worshipping CTA Rejects Tax Plan… Read More

As the world passes through what is arguably the greatest period of instability since the fall of the Berlin Wall and the collapse of the Soviet Union, Republican presidential contenders are providing Americans with a clearer idea of how they believe America should navigate these rough seas.

You can bet that our allies, as well as our adversaries, were watching last night’s CNN/Heritage Foundation/American Enterprise Institute foreign policy debate.

At the top of the list of the most unpopular states among Republican Presidential contenders are Iran and its satellite Syria. Newt Gingrich called for regime change in Iran while Governor Perry advocated for a no-fly zone over Syria. Perry spent the most time explaining, accurately, the link between the Syrian regime and the mullahs in Tehran.

There was little love shown for Pakistan’s government as well. Michelle Bachmann correctly pointed out, although somewhat awkwardly, that Pakistan is “too nuclear to fail.” Governor Perry took a particularly hard line on foreign aid to Pakistan, given the country’s pattern of not fully cooperating with the war on the Taliban.

Governor Romney… Read More

Leaders in the financial sector are shifting their investment strategies based on the increased risk the United States is heading toward a second recession.

In its November “On the Markets” newsletter for investors, Morgan Stanley Smith Barney (MSSB) reports that “the odds of recession in the US and the rest of the developed world are uncomfortably high,” and that the firm is reducing the total risk in its asset portfolios as a result.

How likely is a second recession? The Economic Cycle Research Institute’s “Leading Diffusion Index” is currently at a point so low that only once since 1949 has a recession not followed the economy being in this position.

Other voices in the financial sector say the risk of a second US recession is small.

Given that the economic outlook is sufficiently negative for a major financial leader such as MSSB to make the biggest change in its asset allocation in two years leads us to consider the economic and political implications of a double dip.

Politically, the failure of the Obama Administration’s stimulus bill should be clear for all to see, although its… Read More

Last month the Bloomberg “news service” distributed what purported to be a news story, trashing Prop 13. It was both intellectually dishonest, factually wrong and, well, pathetic. Here’s the response I wrote the reporter and editor (never heard back from them, oddly enough): TO: Bloomberg “Reporter” Christopher Palmeri

Bloomberg “Editor” Mark Tannenbaum

RE:http://www.bloomberg.com/news/2011-10-17/california-diminished-by-1978-tax-revolt-shows-u-s-in-decline.html

RIDER COMMENT: Remarkable. You publish a 2,000 word anti-Prop 13 “news” story without a single quote from a supporter of Prop 13.Not one! Apparently your reporter called the usual liberal California suspects to… Read More

I originally posted this article I wrote on the local San Diego unofficial GOP blog www.SDRostra.com. Surprisingly, all dozen reader comments were positive.

Or maybe NOT so surprising. It’s an idea whose time has (long since) come.

http://sdrostra.com/?p=22192

BANNING MEDICAL MARIJUANA SHOULD BE A DEEMED A CRIMINAL ACT Wednesday, November 16, 2011 posted by Richard Rider, Chairman, San Diego Tax Fighters

I wanted to add my own personal commentary to the Bilbray story about his daughter using medical marijuana. It’s rare that I have an emotional attachment to an issue, as most of my positions are based on hard-nosed facts and sensible logic. However, with the issue of medical marijuana — where I differ from most (not all) of my fellow Republicans — I have both emotional and logical reasons for my position.

To start with, the problems of marijuana prohibition are FAR greater than the harm marijuana causes. It creates a profitable black market for criminals, and it’s crowding our legal and prison systems with non-violent offenders committed what really ARE… Read More