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Bankrupt CA Approves $68B High-Speed Rail

[The John Galt line this is not.]
California passes $8 billion high-speed rail bill
Legislation will fund first 130-mile stretch of $68 billion project

By Chris Megerian - Saturday, July 7, 2012

By a bare majority, the California state Senate voted Friday to approve initial construction on the state’s $68 billion high-speed rail project, ending months of intense lobbying and uncertainty in the Legislature.

The approval was a major legislative victory for Gov. Jerry Brown, who lobbied lawmakers before the vote and celebrated with Democratic legislative leaders off the Senate floor immediately after.

Twenty-one Democratic senators voted “yes.”
http://www.columbian.com/news/2012/jul/07/california-senate-...
The bill authorizes the state to begin selling $4.5 billion in voter-approved bonds that includes $2.6 billion to build an initial 130-mile stretch of the high-speed rail line in the agriculturally rich Central Valley. That allows the state to draw another $3.2 billion in federal funding.
The first segment of the line will run from Madera to Bakersfield.
http://news.yahoo.com/california-high-speed-rail-gets-green-...

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mkes sense

perfect sense

SteveMT's picture

While completed veteran's home sits empty,this trash is past.

There is not enough money to house our veterans, but there is enough to build a high-speed rail line from nowhere to nowhere.
http://openchannel.msnbc.msn.com/_news/2012/07/07/12616621-d...
Despite waiting lists, new homes for veterans in California sit empty
By Aaron Glantz - 7/7/12
------
But though it finished building the 300-bed facility in April, the California Department of Veterans Affairs said this week the state budget crunch means no veterans will be able to move into the Fresno veterans home until October 2013, more than a year from now. The same is true for a new 150-bed facility in Redding that the department recently finished building, said Jaime Arteaga, a spokesman for the agency.

“Right now, they're just empty buildings. They don’t even have furniture,” Arteaga said, “so we are running the air conditioner, running water through the pipes, maintaining the grounds and making sure that everything is in good repair.”

Brother. Like who goes back and forth between anywhere and

Bakersfield or Madera without including either LA, SAC, or SF? YEESH.

SequoiaTrees4RonPaul

lmfao

you can't make this stuff up.

SteveMT's picture

W/CA $16B in the hole, a $68B rail bill is passed. Only in CA!

Truth is stranger than fiction, indeed conalmc!

Calif. gov. urges budget cuts amid $16B shortfall
JUDY LIN - Updated 07:14 a.m., Tuesday, May 15, 2012

Read more: http://www.seattlepi.com/news/article/Calif-gov-urges-budget...

California

I love in Orange County California, and no one wants this out here, not even Democrats! It's not even going to be high speed rail, it's slow speed, and it will go from the middle of no where to a cemetery. These clowns don't represent us any more, they represent State Unions (which are way different than private unions) and big corporations. Why do you think that "hands free" cell phone bill was passed? The companies that make the Bluetooth ear peaces payed off politicians to pass the bill, so that we would all be forced to buy their product. This "high" speed rail bill was passed so that the state unions could get our tax money for the unionized government employees who will be involved in the process of getting this built, which may never happened. It's all a scam!

First of all,

who out there thinks that adding 68 billion in debt to our already bankrupt states balance sheets is a good idea? (I'm sure no one from the DP of course)

Second, Madera to Bakersfield is the first segment? Really?!

SteveMT's picture

Right. Borrowing money to get out of debt is impossible!

This is economics 101, except for the Keynesians.

I would love to see America redevelop

its train industry. I'm still not sure why exactly it went bankrupt. I know Americans outpaced the rest of the world big time in the fifties in automobile ownership, but, for rail travel to go from being the #1 means of transportation to becoming practically a dinosaur within 15 years.

Coming from a UC student

I am currently entering UC Riverside as a freshman. I'm excited by the opportunity to go to college. However what worried me is how I'm going to pay for it. I have to take a loan out for this year and hopefully get scholarships later on. The thing that bothers me is that the cost of tuition is going up again as much as $600 more dollars a year. Now UCR is trying to open a medical school for the surrounding area. Being a Premed student I'm excited. However due to the lack of funding the medical school has been delayed. Now the UCR council has asked for funds from the state to help open the school. Gov. Brown however said that there is a lack of funds to go around a new medical school is not important at the moment. Funny thing is that in the inland empire area (riverside area) there is a lack of primary care physicians. So this brings up the question. Is a stupid train system more important than the lives of many patients who need the care. Being new to the political world I'm here to say that Dr. Ron Paul has inspired me to be more outspoken in my school and community about these projects that might not even help a community but rather special interests. Ron Paul 2012!!!

Welcome to UCR

I also go to UCR its going to be my 5th year (due to on and off health problems) Unfortunately UCR is a complete mess in the way its run and the way it handles its money as you will soon see. Every year classes and departments are cut substantially, but of course department chairs and professors are getting pay raises, (I have a personal friend who is also professor) I have classes that are required for my major and show up on my degree audit, but aren't even being offered...at all... wth? And that med school was built but we didn't get the funding to hire staff or didn't get accredited (I'm not completely sure) so its sitting there useless. So when UCR did get some money rather than add classes or hire more professors to cut down on our large class sizes they instead built three new dorms, and are going to remodel the track and field stadium. Any way you'll see the mess when you get here...graduate or transfer as fast as you can! haha (its not that bad... just disappointing to see tuition dollars mishandled)

here is a vid i found on the opening of the school
http://www.youtube.com/watch?v=j9oZgRIaeUo&feature=relmfu

To tell you the truth UCR

To tell you the truth UCR wasn't my first choice. However after meeting some people that are either going or have attended UCR I really am excited for the school. It seems like the student going there have a chip on their shoulder and are willing to work their butts off to prove a point. However I agree that all colleges spend money on many stupid things but I kind of agree with the dorm situation. From what I heard lothian and A.i. Are getting old. Hopefully I get into pentland. But after that I'm thinking of switching to International village.

Ever heard of China Ghost Cities?

Well this is the California Ghost Rail. Madera to Bakersfield. Question, why not build it starting in the middle of LA to at least be an intra-LA area system as it opens up, surely they can use it given their congestion and smog problems. Then eventually link it up with SF.

The china ghost cities had all the same so called benefits too. Put people to work, grow the GDP, engineers, surveyors, business people, etc etc.

The only downside is nobody used it when it was done so it was a big money pit the whole time with no benefit. LOL

Hey California i got one, instead of building the high speed rail how about just 1 billion to pay people to dig holes in the valley and another 1 billion to pay people to fill them back in. With no cost for materials this would be 10X the number of jobs at half the price.

Why dont you whiz kids come to china and look for ghost cities?

Some western writers like to write about ghost cities and trains with empty seats...

What is the truth? The truth is that high speed rail is awesome.

The trains are generally packed full. you'd better plan ahead if you want a seat to some locations.

The lack of trains in the US was deliberate and contrived.

Make fun all you want.

No way in hell would I want

No way in hell would I want to ride on a high speed train in an earthquake zone like California.

I foresee train derailments happening quite frequently.

SteveMT's picture

A rail line would be awesome, but not publicly funded,...

especially by a state that is bankrupt.

Don't you believe that these empty cities exist?

http://www.dailymail.co.uk/news/article-1339536/Ghost-towns-...

SteveMT's picture

Now China has built a ghost city in Africa. Ugh!

More eerie 'ghost cities' popping up
Shocking photographs reveal towns completely devoid of people
Published: 4 days ago
http://www.wnd.com/2012/07/bizarre-chinas-eerie-ghost-cities...
Why are billion dollar cities being built if nobody can live in them? Ask China
http://www.catholic.org/international/international_story.ph...

I liked Tye Brown's comment.

"SINCE AMERICANS ARE PLEDGED AGAINST THE DEBT THE CHINESE MAY BE PLANNING ON PUTTING AMERICANS IN THE VACANT CITIES TO WORK THE DEBT OFF." [Caps his]

wow that is crazy!

I know China had some tight alliances with Africa (one benefit to Africa being that they are not the USA) but this is ridiculous. Thx for sharing

This always cracks me up.

"High speed rail".
The answer to the question nobody asked, or even cares about.

It's kind of like a mantra for people who want expanded gov't. They don't really know why they want it, but it seems like a big project for gov't to spend money on, so they love it.

Classic Simpsons qoute

Coincidentally, from the "Monorail" episode:
"You know, a town with money is little like the mule with a spinning wheel: no one knows where he got it and danged if he knows how to use it.".

CAFR Funds,,,Thoughts?

This is an old article, but a good one. I don't understand States that are broke but have trillions in CAFR funds. Is it like a different set of books that many know about..but real answers about it are never given? I've been confused for a long time. Like, is California REALLY broke? I don't think so.

http://goldmoneybill.blogspot.com/2009/02/cafr-funds-governm...

fonta

Yup it is pretty dumb

Yup it is pretty dumb although not the dumbest thing they could spend money. At least there are tangible assets in this case that the bond holders can legally own if/when bankruptcy occurs.

That said, this is going to be obsolete before its even finished. But hey, at least the scrap metal will be worth something right?!

Please visit and subscribe to www.libertyentrepreneur.com!

This should have been done years...

ago. I used to live in the central valley and I would have used this to go to LA(Disney land), San Francisco, and Sacramento more. But now I don't know if people will use it as much because the economy and the state has no money. They were arguing about the exact cities it goes through. Bureaucrats

Depreciation

Obviously the State government knows that in 10 years that railway will be worth nowhere near what the purchasing price will be.

This sounds like a very good deal for bondholders since they know California will not be able to make ends meet down the line, so to speak.

The bondholders will get the railway plus many other great deals when the time of reckoning draws nigh lol

I predict this railway line will be sold in 10-15 years if not less for around 6 billion dollars.

...of course the taxpayers will be left holding the bag :(

This is a very bad idea for Californians unless you are politician involved in this or a soon to be related contractor to this project.

donvino

Agenda 21?

Of course they found the money for this, it sounds like it fits into the UN/USA Agenda 21 plan. They will use the unsound money they will print and we will be in ever indebted for our enslavement.

Exactly

Exactly what I was thinking. If it isn't A21, it sure does smell an awful lot like it. If you notice, the rail system is set to run through "the agriculturally rich central valley", despite "significant challenges, including ongoing litigation and fervent opposition from farmers in the Central Valley.".
After reading the article from "The Columbian" it seems as if all the indicators are there for A21.

Other noteworthy quotes from the article:

From Dan Richard, chairman of the rail authority board:
“Look, this is 21st-century California, and we’re trying to build something big,” Richard said. “There’s obviously going to be litigation, there’ll be challenges. That’s the nature of the society that we live in, and we’ll deal with those as they come up.”"

From Sen. Joe Simitian, one of the Democrats voting against the rail:
“We’re not being asked to vote on a vision today,” Simitian. “We’re being asked to vote on a plan.”

And last but not least from Sen. Tony Strickland, who is, according to the article, one of the Republicans opposing the rail through the sparsely populated region:
“I think this is a colossal fiscal train wreck for California,”

SteveMT's picture

I think that you hit on something here, Neo307.

Great comment! You got me thinking. This rail system will be high speed with express stops only in the future because there will only be large cities with nothing in between. In fact, the elites are using our money to build it for themselves of course. We will be the ones enslaved in these big cities with no longer the need for travel. They are building it for themselves. Agenda 21 indeed!

Well of course!

Think of all the jobs it's going to create. Too bad we're already broke.

beephree

Broke, yes...

But isn't it sad how it is considered so outlandishly expensive to spend 4 or 5 or 6 billion dollars on a public works project, yet our nation regularly bails out wall street to the tune of hundreds of billions of dollars...

It would be wonderful if we could be completely without government interference, but frankly, more than half of our countrymen do not agree.

The "beast" must be fed. Better the above public works project than the trillion dollar bail outs and trillion dollar wars.