Los Angeles Out of Cash

We have mentioned some trigger points in the past that could lead to serious chaos problems in this country. One of those triggers could be bouncing welfare checks to cities, like Los Angeles, that have a huge percentage of their populations reliant on government handouts.

Think about it...if you have millions of people who have gotten used to receiving a check every month for years and one day....they flat out don't get one....you have a recipe for some serious anarchy, looting, and upheaval.

Today, we find this headline;
Los Angeles to Run Out of Cash in a Month, City Controller Says
Los Angeles will run out of cash on May 5, city Controller Wendy Greuel said today in a release in which she requested a $90 million transfer of reserve funds to pay bills.

The controller said she received a letter from the Los Angeles Department of Water and Power today indicating the utility wouldn’t send an anticipated $73 million payment to the city’s general fund. That money is part of an annual contribution of 8 percent of power revenue that the utility makes in lieu of paying taxes to the city, according to Ben Golombek, a spokesman for the controller.

“The question I have been asked most often during the budget crisis is, ‘When will the city run out of money?” Greuel said in the e-mailed release. “Unfortunately, we finally have the answer.”

See it here; http://www.businessweek.com/news/2010-04-05/los-angeles-to-run-out-of-cash-in-a-month-city-controller-says.html

The article doesn't mention welfare checks bouncing, but I have seen other articles from California saying that if their budget situation doesn't improve....they will have to make cuts or eliminations EVERYWHERE.

If California had a healthy budget, the city might be able to go to the state for a low-cost bailout....but we know that California as a state is also flat broke...and has already come to the Federal government for help....and we know the Federal government is also flat broke.

Can everybody say the word, "unravel"?