Earlier this month the California Policy Center released astudythat provided additional evidence that the U.S. stock indexes are overvalued by approximately 50%, along with calculations showing the impact of a major downward correction on the solvency of California’s state and local government pension systems. Stocks are now at unsustainable bubble valuations.

Not covered in this study, but equally overvalued, are bonds, which pension systems misleadingly categorize as “fixed income” investments in their portfolio disclosures. CalPERS even went so far as to trumpet their success in earning a 9.29% return on “fixed income” investments in theirmost recent press release– a healthy return that offset losses elsewhere and allowed them to earn a marginally positive return of 0.61% last year. But “fixed income” investments usually refers to bonds, and bonds are also at unsustainable bubble valuations.

Here’s why bonds are… Read More

This November, California voters will face a slew of tax and bond proposals at both the state and local levels. Each of those ballot measures will be supported by the usual pleas from those who benefit from higher taxes – especially well funded labor organizations.

Special interests will complain about the “cuts” to vital public programs in education, transportation, health care, etc. that they have suffered in the past. But the problem they have is that they run head long into the facts – facts which show California government is now more flush with cash than at any other time in its more than 160 year history.

The California state budget projects spending of $122.6 of general fund dollars which is over 5% higher than last year and a stunning 42% more than when Brown took office in 2011.

As we get closer to the November election, this column will present a host of reasons why most tax increases should be rejected. We do this in full knowledge that our opponents, with tens of millions of dollars in campaign funds, will drown out any competing messages of fiscal responsibility, protections for homeowners and a healthy economic climate to ensure that… Read More

The fad in the California Legislature in 2006 was “global warming” (aka “climate change”). Passion ran high with legislators debating what role government should play. Many folks warned that a “go-it-alone/California-only” program could put our state’s economy at risk. Even the most wild-eyed, green believers knew that California’s proposed program would have virtually no effect on so-called worldwide global warming, yet our state could lose thousands of jobs in the process.

Instead of waiting for more conclusive scientific evidence, the Legislature acted rashly, as is often the case. Unfortunately, the result was Assembly Bill 32, which requires the state… Read More

Since 1971, the United States has been off the gold standard. Instead of the value of the dollar being defined in terms of gold, our currency is said to be backed by “The full faith and credit of the United States.”

However, listening to politicians, the new standard for backing taxpayer dollars may be coffee, or, more specifically, the latte.

Endorsing efforts to impose a parcel tax on property owners to support parks — parks that have been purposely ignored in the Los Angeles County general fund budget — Supervisor Hilda Solis trivialized the tax saying, “For Pete’s sake, what does it amount to for the average voter, a latte a month at Starbucks?” Her colleague, Sheila Kuehl, upped the ante, gleefully saying the permanent property tax increase would be like, walking into Starbucks and getting anything you want because parks are free. “I proudly support taxing and spending,” she added.

To read the entire column click here http://www.hjta.org/california-commentary/is-coffee-the-new-gold-standard/… Read More

Back in 2012 we published an article entitled “The Forgotten 33%,” which included a graphic entitled “American Voter Breakdown 2012.” It depicted the U.S. electorate as comprised of 46% who pay zero nettaxes, 20% who work for the government and are net tax consumers, the 1% “super rich,” and the “forgotten 33%,” who work in the private sector and earn enough to be positive net taxpayers.

The point of the article, then and now, was that people with an intrinsic preference for big government comprise a super-majority of voters in America. But something has changed since 2012…

AMERICAN VOTER BREAKDOWN 2016

The emergence of Donald Trump and Bernie Sanders as serious contenders to become president of the U.S. reflects a growing awareness among voters in all of the above categories that things can and should be better. The… Read More

On the afternoon of June 22nd, a large number of Democrats brought the deliberations of the House of Representatives to a standstill in one of the most disgraceful and childish breaches of decorum in the history of this institution. In complete contempt of this House and the rule of law, they shouted down all with whom they disagreed, they blocked access to the microphones as members sought to address the chair, and they illegally occupied the Hall of the House – forcing an early adjournment and costing this House three full days of legislative deliberations.

Abraham Lincoln said it best, “There is no grievance that is a fit object of redress by mob law.” What we saw was the mob law of… Read More

By putting a deceptive ballot measure in front of voters, Supervisor Shawn Nelson, who will be forced from office due to term limits in two years, is hoping to be able to stay in office another 14 years!

With four days notice, mostly over a weekend, termed-out Orange County Supervisor Shawn Nelson has decided try and pull two of his colleagues into a last-minute power play to considerably extend his time (and their time) in office by putting a measure on the November ballot ostensibly to “reform” Supervisorial term limits – but let’s be very clear –… Read More

To most Americans the car, perhaps more than any other item, has long represented freedom and opportunity. But at a time where freedom, opportunities and liberties are being rapidly taken away by government, symbols of individual freedom become more important.

“Californians are driving more, which is bad for climate change,” reads theheadlinein the San Francisco Chronicle Thursday. The article is not an op ed, but was written by a San Francisco Chronicle staff writer, Kate… Read More