Few people know the real history of Memorial Day. This actually dates back to the Civil War. It was called Decoration Date and was to commemorate the deceased of the Civil War. It was first observed on May 30, 1868. It involved a large ceremony at Arlington National Cemetery. Most southern states refused to honor Memorial Day until after World War I. After World War I, Memorial Day was adjusted to celebrate the deceased in all wars. Memorial Day became a national holiday in 1971.

For those of us who are combat veterans, this day holds special significance. Many of us had friends who never made it home. I will never forget.

I graduated high school in 1965. That was the class that went to war. Our class lost a lot of people in Vietnam. Few of us would have predicted that on graduation day in 1965. I certainly had zero intention of pursuing a military career. Like a lot of other people, it was the military draft that motivated my decision. Most of the people I flew with in Vietnam did not consider themselves to be heroes. They were just people who realized it was our turn to answer the call and while we didn’t want to go, we couldn’t consider asking someone else to go in our place.

I still remember getting on an airplane in Seattle and taking off for my second tour in Vietnam. I looked around the plane and there were a lot of solemn faces. Few looked like they considered this a great adventure. Instead they looked like ordinary people, more than a little terrified, but grimly prepared to do their duty. Prior to boarding that plane I had watched wall to wall anti-war demonstrations on TV.  These naïve and selfish people thought they were showing great courage and saving the world. They had no clue regarding the reality of who and what we were fighting in Vietnam. In my mind, this was the opposite of courage. The real demonstration was by all those men who quietly kissed their loved ones goodbye and got on that plane.

So while I have special memories for the friends who did not survive the war, I also remember the men on that and many other similar planes. They get little or no publicity and few even notice. But they are the ones who demonstrated what courage looks like and why it is so important.



California is about to enter wild fire season. We have already had some small fires even before the hot summer weather hits. So far these fires have been small. But they are a warning of what is to come. But the real wild fires in California this summer will be political.

Governor Newsom has arrogantly sowed the wind and is about to reap the whirlwind. His heavy handed approach to COVID 19 has done incredible damage to the California economy. What makes this more devastating is that Newsome did this state-wide, including areas where there is virtually no COVID-19. He is still arrogantly trying to micromanage reopening California, with catastrophic results. We are getting new cases in California, but so far they are coming from areas which are and have been shut down.

California was already in serious financial trouble because of severely underfunded pension programs. A lot of people realized the state budget looked like a Ponzi scheme. Well now the Ponzi scheme has run out of new income in part because of unforced errors. Like every other Ponzi type scheme, once new income stops the scheme collapses almost immediately.

This all could have been prevented. All Governor Newsome needed to do was let counties make their own decisions. They would have reopened large portions of the state weeks ago. But instead he arrogantly chose to be “the man” and “the man” botched this big time.

In March Newsom was predicting that 56% of Californians (25.5 million people) would get COVID-19 over an eight week period. That eight week period is now over and this is beyond absurd. He even hinted that martial law could be used, if necessary. He did activate the National Guard, but only on humanitarian assignments.

Newsom: “If we’re to be criticized at this moment, let us be criticized for taking this moment seriously. Let us be criticized for going full force and meeting the virus head on.”

Governor Newsom, you got. You deserve all the blame for over-reacting to a virus that has a mortality rate of less than 1% and which has impacted 80,430 people. That is just slightly less than your estimate of 25.2 million people.

Everyone in California is paying a steep price for this major miscalculation. Newsom remains oblivious. When Jake Tapper asked: “how much of the state’s financial crisis is the result of pre-existing financial obligations?” Newsom responded by saying: “None.” Even Tapper did not buy that. Note to liberals: “When you’ve lost people like Jake Tapper, you’ve lost the country!”

Newsom estimates there is already a $54.3 billion deficit. Ironically, Newsom admitted there was a serious pension liability problem, but pretended it was under control.

That $54.3 billion is a direct result of COVID-19. Just a few months ago, I introduced my January budget but, with, again, a projected surplus. We paid off 100 percent of our debt we had inherited over seven or eight years ago. We were using $9.13 billion of the surplus last year to pay down long-term pension obligations,”

Newsome has already announced cutting state funding for education and other programs. He has cut the wages of California State employees by 10%. He is hinting at cutting first responders. Yet, at the same time, California has miraculously found the money to pay benefits to illegal aliens. He has found the money to pay hotels to house the homeless. This won’t fly in Peoria or anywhere else.

Newsom needs to submit a balanced budget by July 1. He is out of time. Every week, every day, every hour there is a delay in getting the state re-opened makes the problem worse. It may take years for California to recover. Newsom has to cut spending NOW! No one is going to loan California enough money. The federal government is not about to bail out California, regardless of what Nancy Pelosi thinks.

Democrats will predictably try to solve the problem by cutting the things that matter most to people. They always do that. They will also respond by trying to increase taxes. There already appears to be another stealth attempt to overturn Prop 13. They will also try to blame Republicans, but Democrats dominate California and every statewide office is held by a Democrat. This time the blame game won’t work. None of this will work. California already has extremely high taxes. People are fed up.

California recalled a governor once before, unless far less troubling circumstances. But that will take months and will result in a free-for-all similar to when Arnold Schwarzenegger was elected governor. In the meantime people are getting more frustrated and angrier. The liberals who have been trying desperately to convince themselves that COVID-19 was the worst risk to mankind in world history will find themselves shrieking to a rapidly shrinking audience. COVID-19 deaths are down, COVID-19 hospitalizations are down, but the deaths from other causes did not miraculously go away.

As COVID 19 fades quickly into the background, the economic destruction including the inevitable deaths will become increasingly impossible to ignore. There is a political wild fire, already burning, that will soon envelope this state. This will be hotter than you can imagine. It will be more destructive than anyone thought possible. It cannot be stopped; nothing can even slow it down. Soon the question will be who will survive and then the focus will be on how to prevent this from ever happening again.



We are only days away from hot weather. The high-pressure ridge will move in, California skies will clear, and temperatures will soar. This happens every year.  But this year is going to be much hotter than normal, because of factors not involving the weather.

The California economy has been absolutely shredded by the extended lock-down. This is being exasperated by unnecessary fear. If the intent were to get everyone terrified by COVID-19, that worked brilliantly. Every decision is based solely on fear of COVID-19. We are arrogantly lectured about listening to the science, but there is little if any real science involved. They are frankly guessing.

We don’t even know if the lock-down and social distancing accomplished anything. It certainly did not stop the spread of the disease. We were told this was necessary to flatten the curve so our hospitals would not be over-whelmed. Our hospitals were not overwhelmed, and no one predicts they will be overwhelmed in the future. There is plenty of PPE and we are selling excess ventilators to other countries. Have you seen that flatten the curve graph lately? Me neither. You won’t see it because the original graphs based on computer models now look absurd.

If you think 2020 started out bad, we have only just begun. California is running out of money. It had to borrow money from the Federal Government to pay unemployment checks. Governor Newsom just cut the pay of every state employee by 10%. It won’t end there. Soon he is going to be announcing a hiring freeze and massive layoffs. Wait until they start cutting pension benefits. California is rapidly running out of cash. Income is way down, and expenses are skyrocketing. No business, no government, no state, no country can survive that kind of economic meltdown. The state must find a way to rapidly increase revenue while drastically cutting expenses. Instead our Governor is giving money to people here illegally. If you think people are angry and frustrated now, give it a week.

This is stupid and painful, and no one seems to consider what will happen when the California runs out of money. Who is going to loan this state money? The federal government? China?

So far, people have gone along, because the pain is not yet obvious and because they bought into the fear of the virus. That is about to change, quicker than the weather. At some point the truth will become too obvious to ignore. Sacramento remains shut down. As of today, they have had 1,211 confirmed cases and 54 deaths. California has had 74,396 confirmed cases and 3,108 deaths, and about half of them came from nursing homes. Los Angeles County has had 36,529 cases and 1,755 deaths. Fresno has had 1,156 cases and 16 deaths. San Francisco has 2,026 cases and 36 deaths. Only five counties have had more than 100 deaths: Los Angeles, San Diego, Orange, San Bernardino, and Santa Clara. El Dorado has had no COVID 19 deaths. Placer has had 8. Yet the entire state is hunkered down in fear, At some point, when the devastation from a collapsed economy becomes all too real, even liberals will realize this is insane.

Look around you. What is obviously true is obviously true. Eventually what is obviously true becomes obvious to everyone.



Richard Burr has been Chairman of the Senate Select Committee on Intelligence for a long time. He is very good friends with Democrat Mark Warner. The main stream media considered this to be great bi-partisan cooperation. In reality it was a RINO Republican coordinating his activities with ranking Democrat, Mark Warner. While Burr pretended to be “bi-partisan” Mark Warner was and is completely partisan.

The result was that the Senate Intelligence Committee refused to investigate anything Obama while green lighting investigations of the Trump administration. Recently this committee approved a statement saying that the ICA conclusion that Russia had interferred in the 2016 election to help Donald Trump was substantiated by the evidence. That is clearly not true and documents recently released, over the objection of Chairman Burr, prove that this is not true. Actually it looks like there was better intelligence indicating that Russia wanted Hillary to win.

Well Richard Burr was caught selling stock shortly after learning about COVID-19. Yesterday his phone was literally seized by the FBI yesterday. Today Richard Burr stepped down as Chairman of the Senate Inteligence Committee. He called Mitch McConnell who said that was the right thing to do. It will be interesting to see who replaces him. That decision is up to Mitch McConnell. This new person is almost certain to start asking some serious questions. We can be certain that the new Chairman is not about to let Mark Warner continue to call the shots.

This couldn’t come at a better time for Trump and a worse time for his opponents. The John Durham investigation is heating up and now the Senate Intelligence Committee is unlikely to participate in the cover-up.

Burr is likely to find little support from anyone, including the remaining RINO Republicans. Those who are afraid to stand up to Democrats will be equally afraid to stand up for people who foolishly considered them to be friends.

The Senate Intelligence Committee will be a “Burr less show” and that is a very good thing.



Creedence Clearwater Revival produced “Bad Moon Rising” in April 1969. John Fogerty, who wrote the song, considered it to be a happy tune. Students in Berkeley used it as a theme song during their anti-war demonstrations. Here are the actual lyrics:

Bad Moon Rising

I see a bad moon a-rising

I see trouble on the way

I see earthquakes and lightnin’

I see bad times today


Don’t go around tonight

It’s bound to take your life

There’s a bad moon on the rise


I hear hurricanes a blowing

I know the end is coming soon

I fear rivers overflowing

I hear the voice of rage and ruin


Don’t go around tonight

It’s bound to take your life

There’s a bad moon on the rise


I hope you got your things together

I hope you are quite prepared to die

Looks like we’re in for nasty weather

One eye is taken for an eye


Don’t go around tonight

It’s bound to take your life

There’s a bad moon on the rise

There’s a bad moon on the rise

The students in Berkeley thought this was an anti-war song. If so, that would have been news to John Fogerty. He actually based it on a movie called “The Devil And Daniel Webster.” That was about a farmer who made a pact with Satan for economic success and then asked Daniel Webster, who was a lawyer, to help him break the contract. Since the plot took place in 1840 odds are it had little to do with the Vietnam War.

Others believe it was a warning regarding abundant drug use by celebrities. As for me, I just liked the music. So did a lot of soccer fans in Brazil. Although I knew the actual lyrics, to me it sounded like they were really singing: “There’s A Bathroom on the Right.” In some ways, those lyrics would be equally accurate since people caught in this type of situation often are desperate in need of a bathroom.

Regardless of why Fogerty wrote this, the words sure seem to apply today. There is a Bad Moon on the Rise. I do not know how many people will die from COVID 19, but I fear the failed cure will be far more devastating than the disease itself. I hear hurricanes of economic destruction blowing. I know the end is coming soon, because everyone is going to run out of money. I fear economic rivers overflowing and doing more damage than most people can imagine. I hear the voice of rage and ruin, growing louder every day. The incredible damage done by irresponsible and power hungry politicians bowing down to non-existent science will be increasingly difficult to ignore.

I do think there is a bad moon on the rise. And yes, I do think a lot of people will be in desperate search of a bathroom to flush this all away. Let’s hope they are smart enough to realize there really is “A Bathroom on the Right.” Heaven help us if they continue to take guidance from those who directed us into this mess.




Seldom in the history of American broadcasting have so many people been so blatantly wrong about such a material subject. The MSM, particularly CNN and MSNBC has been obsessed with the conspiracy theory that the Trump campaign colluded with Russia to influence the 2016 election. Numerous people, like James Clapper, came on the air and said this. Adam Schiff, Chairman of the House Intelligence Committee said this at every opportunity. Evelyn Farkas not only said that Russia collusion was real, she made the following appeal:

“I had a fear that somehow that information would disappear with the senior people who left so that it would be hidden away in the bureaucracy, that the Trump folks, if they found out how we knew what we knew..about the Trump staff dealing with Russians that they would try to compromise those sources and methods,” Farkas said during a March 2, 2017 interview on MSNBC. “That’s why you have the leaking. People are worried.”

Privately, under oath and under pressure from Trey Gowdy, Farkas admitted she never had any evidence of the Trump staff dealing with Russia. She also had no information connecting the Trump campaign to the hack of the DNC servers, but you didn’t know any of this, until now.

Now we learn that no one even had evidence of Russia hacking the DNC servers, including the folks at CrowdStrike. That’s right folks. That too was a big lie. They still don’t know who hacked the DNC servers.

Today more documents will be released proving this beyond any doubt. For the first time the American people can see the cold hard truth for themselves. If these clowns were capable of embarrassment, they would be humiliated. But they aren’t capable of feeling embarrassed. They aren’t capable of admitting error. They aren’t capable of admitting bias. Instead we can be sure they will try to find a way to blame this, on Donald Trump. Adam Schiff already tried to blame this on COVID 19.

It won’t work. Not this time. It won’t work because there are literally hours and hours and hours of news anchors lying on national television. Every day, every hour, every show, every person, got this wrong.

They got away with this because they were all in collusion. They got away with this, because Adam Schiff blocked release of crucial documents. They got away with this because senior members of the FBI blocked release of documents. They never dreamed they would be confronted with the actual documents. They were wrong.

The FBI had already turned over some documents to John Durham who sure looks to be on the path to indictments. Now the DNI has declassified the rest turned them over to the DOJ and released them to the press. No more unidentified sources. We can see what people actually said, in their own words.

There is already an entire team of people poring over these documents, line by line. They are probably having trouble controlling the giggles. They are not going to find evidence of a conspiracy by the Trump campaign to collude with Russia. That never happened so there was never any evidence of that. Instead they will find a conspiracy against the Trump campaign. A conspiracy that involved people at the highest level of government potentially including President Barack Obama. People who were working with Russia to influence the 2016 election.

They will find a mountain of evidence that the MSM was a willing partner in this conspiracy. Ready, willing and able to make the most serious possible accusations against a sitting U.S. President without a shred of evidence. Now we know it was much worse than that. They did have evidence, evidence that none of it was true.

What makes this worse is that they cannot refuse to cover this story. When the DOJ dropped the charges against Flynn, it forced full public disclosure. The damage has been done and it is not reversible. Even Trump haters will be furious. Furious that they were led to believe things that were so clearly untrue. Furious that they were given false hope. Furious that they defended the indefensible.

Look at your TV lineup tonight. Write down the names of the news anchors, the reporters, the producers, the panel members. Now seal that list in an envelope and look at it again on Labor Day. You will be shocked at how many people will be gone. Some will resign. Some will be fired. Some will retire. Some will be on assignment. But they will all be gone. They will be gone because no one and I do mean no one, will ever believe them again. Look now, because soon they will all be gone with the wind.



The DOJ officially dropped the Michael J. Flynn case today. It is hard to imagine the judge refusing to just dismiss the case. What is more important is that the DOJ did this while disclosing documents shredding the decision to prosecute Flynn in the first place. Simultaneously the DNI told Adam Schiff to release documents he has been hiding for over two years or the DNI would release them. Schiff quickly folded.

The statement by the DOJ is astonishing:

“After a considered review of all the facts and circumstances of this case, including newly discovered and disclosed information” it has concluded that Flynn’s interview by the FBI was ‘untethered to, and unjustified by, the FBI’s counterintelligence investigation into Mr. Flynn’ and that interview was ‘conducted without any legitimate investigative basis.’”

This was the result of a recommendation by U.S. Attorney Jeff Jensen.

“Through the course of my review of General Flynn’s case, I concluded the proper and just course was to dismiss the case. I briefed Attorney General Barr on my findings, advised him on these conclusions, and he agreed.”

Brandon Van Grack abruptly withdrew from the prosecution team.

It is important to note that this report is from the AP, which is no friend of Donald Trump. That is why the following conclusion is an even bigger bombshell:

“Other documents show that the FBI had been prepared weeks before its interview of Flynn to drop its investigation into whether he was acting at the direction of Russia.”

Christopher Wray made no comment other than to acknowledge that the FBI had turned over documents to the Inspector General and to U.S. Attorney John Durham. Oh, he also reminded people that he was not Director of the FBI when this happened.

The MSM cannot ignore this story. There are already some liberals trying, and failing, to say this is abuse of power by the Trump DOJ. They question the independence of the Justice Department under William Barr. But the problem is the more this is investigated, the more reporting on this, the worse for Democrats. Even the MSM cannot report on this without also reporting on the actual documents and those documents are devastating.

John 8:32. “And ye shall know the truth and the truth shall set you free.”



Christopher Wray is the Director of the FBI. He has resisted giving interviews and releasing documents to congressional committees. Several conservative commentators have complained about this and questioned whether Wray is willing to take on corruption in the FBI. However, I noted that this criticism never came from William Barr or President Trump. So I went back and looked at what Wray actually said. He repeatedly said he would not comment on an ongoing investigation. He would then defend the integrity of the FBI.

Wray refused to release documents or allow interviews by congressional committees. That was interpreted as being part of a cover-up. There have been times when that tactic was used by unscrupulous people to avoid answering questions. They used the illusion of an investigation to perpetuate a cover-up. But there are also people who don’t comment on an ongoing investigation because they are not interested in making news they are interested in making arrests. It is now obvious that Christopher Wray has been cooperating with William Barr and John Durham. Perhaps it is because he is less interested in making the news and more interested in obtaining criminal convictions. Here is the actual FBI statement:

“With regard to certain documents in the Michael Flynn matter from the 2016-2017 time period that are now the subject of reporting by the press, the FBI previously produced those materials to the Inspector General and US Attorney Durham,”

“The Flynn investigation was initiated and conducted during this time period, under prior FBI leadership….Director Wray remains firmly committed to addressing the failures under prior FBI leadership while maintaining the foundational principles of rigor, objectivity, accountability, and ownership in fulfilling the Bureau’s mission to protect the American people and defend the Constitution.”

The fact that the FBI released this now is beyond significant. It is clearly designed to get those pesky congressional committees and the news reporters to back off. But it is also implies that Durham is poised to start indicting people. The FBI wouldn’t have released this statement without approval from both Barr and Durham. They would not have given such approval unless they already had all the evidence they need.

Many of you have wondered how some of this could have happened without anyone being held accountable. McCabe was fired, but everyone else seemed to get away with a slap on the wrist. But sometimes silent people are dangerous people. When they speak, people go to jail. We just may be dealing with that rare but important breed of prosecutors who could care less about what the public or anyone else thinks. They are focused only on building a case that will result in conviction.

Frankly, some of those conservative commentators should have known better. If the FBI had released these documents sooner, before the investigation was complete, they would have just given criminal defense attorneys a road map for defense. It is like the local prosecutor who knows a key piece of evidence crucial to a criminal conviction. The prosecutor also knows that the prime suspect does not know this evidence exists. All of us have watched a TV crime show where we have seen this in action. The detective is interviewing the suspect. The suspect does not know that the detective has the murder weapon with the suspect’s finger prints on it. So the suspect lies. If the suspect knew what evidence the detective had, an explanation would have been prepared. This is why any competent detective or prosecutor that is asked about a criminal investigation responds with: “no comment.” That is just the way it works. It is the way it should work.

It sure looks like a lot of former FBI employees who thought they were above the law about to learn this the Hard Wray. It just could be a beautiful thing.



We are now testing far more people for COVID 19. Previously, one could only get tested if they had serious symptoms and considered to be high risk. Unless, of course, you were an anchor on CNN. Then it was easy to get a test. But for most people, getting a test was far from easy. Even under this scenario, 85 percent of people tested negative. Clearly there was a lot of illness not related to COVID 19 at all. Yet no one in the MSM seemed to notice or care.

Our testing capacity and capability has risen dramatically. Tests are being afforded to those who do not have any symptoms at all. Recently, at a meat packing plant, people were horrified to learn that 307 people tested positive for COVID 19. But, one critical detail was omitted in the report: NONE of these people had any symptoms. The point being that if you test more people and they turn up positive, but they aren’t sick that is a very good thing. People who get the disease and don’t get sick are exactly what scientists want to see. It means that an increasing number in our population were able to develop the antibodies to thwart the disease. The greater number of people that develop this immunity will limit the number of those who contract the disease. A proposal was floated suggesting that those who had developed had antibodies to be given “immunity cards” as basically a “get out of jail card.”

It is increasingly obvious that the death toll related to COVID 19 is deliberately overstated. There are numerous reports about this. Yet no one in the MSM is investigating this at all, because the MSM needs an inflated death toll. It is a component of psychological warfare:  FEAR – it is essential to retaining power over the people.

Every day we get two numbers, delivered with hushed breath. The number of new cases and the number of new deaths. Both are considered warnings that the pandemic is not over. The shutdown is working, social distancing is working. You must obey. But the reality is the exact opposite. If the lock-down and the social distancing really worked, we should have already seen the disease peak and decline. That, after all, was the whole point.

I believe the disease continued to spread and neither the lock-down nor the social distancing had much impact. Since there is no scientific study that shows the disease is spread airborne, social distancing was destined to failure. You get this by touching droplets, which can hang around for days if not weeks. The real danger does not come from going to church and listening to a minister, it comes from going to Walmart and touching things touched by someone else.

In the meantime, while the disease has been spreading, most of the people getting it are not sick. As mentioned previously, the death rate is grossly exaggerated. But even at that, the most incredible thing about COVID 19 is the lack of morbidity. No one should want this disease and if you have underlying health conditions you should take precautions. But for the vast majority of people this disease is a big nothing. This is like the guy running away from a chihuahua who forgets to look both ways and gets run over by a truck. We may have just run away from a disease that was not that much of a threat and put our entire economy and way of life at risk. I easily predict that far more people will die unnecessarily because of the shutdown of our economy that could possibly have been saved from COVID 19.

Marin County, located in the San Francisco Bay Area, just north of the Golden Gate Bridge has been shut down since March 17th. Marin County has a population of about 230,000. As of today, there does not appear to be a single person in a hospital in Marin County because of COVID 19. But the beat goes on. Only now are they starting to relax the shelter in place orders a little.

Marin County has a lot of very wealthy residents. It is too bad that in a lot of cases this wealth did not result in an increase in common sense. These new restrictions are absurd. For example, any place open for business must now require face masks of everyone (except for very-young children). Day care facilities can now open, but only for clients who work in essential or outdoor businesses and strictly limited to 12 or fewer children.

This is the plan for your life should you decide to accept it. Arrogant people will make stupid decisions demanding we all listen to what they consider to be the science while ignoring the existing science. Be warned. If this works, you are going to see similar and even more restrictions on everything designed to protect us against Global warming (Climate Change). If they can scare you into destroying our economy because of a virus with a morbidity rate of about .1%, then anything is possible when fighting the global warming that threatens global human existence. Just like with COVID 19, any science that disagrees with that parroted by the cultured elite will be blocked and ignored. Consider this your global warning. If we do not learn from this, we are doomed, not because of climate change but because of a total loss of fundamental freedoms.



We are within days, not weeks, of entering a whole new phase of the COVID 19 crisis. This is when the geniuses in charge of our government realize they are running out of other people’s money.

Margaret Thatcher:

“The problem with socialism is that eventually you run out of other people’s money.”

When I was stationed in Vietnam I quickly learned the significant difference between two words: “outgoing” and “incoming.” Outgoing meant our own artillery was firing at targets. That was very loud, but not a threat to us. Incoming meant we were being attacked and I needed to take cover.

Shortly before the end of my last tour I was at Da Nang AB when I heard a rocket go overhead. So I yelled “incoming” and immediately dropped down into the nearest pot hole bunker. This was why those bunkers were there. I was walking with an airman who had only been in country about three days. I was his flight instructor. As I was lying down in the bunker, he was just standing there staring at me. Just as I told him that “incoming” meant we were under attack, a rocket hit about a ¼ mile away. It was not close enough to cause either of us harm, but it was close enough to permanently change his perspective on things. No one had to explain what “incoming” meant again.

There is another important term to understand. That is “financial death spiral.” I was responsible for purchasing the insurance for a major corporation. I soon discovered that they had a health care plan that was literally in a financial death spiral. What happened was that this program offered top of the line protection. It was a great plan, but it was much more expensive than the other health care plans. Someone had decided that the solution was to raise premiums for employees who signed up with this plan. Employees, who chose other, less expensive plans, would pay much less. It probably sounded like a good idea at the time. But it resulted in adverse selection. The more rates increased on this plan, the fewer number of healthy employees who were willing to pay for it. The result was an unsustainable loss ratio. Increasing rates would only make things worse, because it would increase adverse selection. It was in an irreversible financial death spiral.

State governments who ordered strict shelter in place directives have put their own economies into a financial death spiral. But, like that airman in Vietnam, they didn’t even recognize the danger. The longer this lasts, the worse it gets. They have drastically cut their own income while simultaneously increasing expenses. That has never worked. If they increase tax rates they will get even less actual tax revenue because the economy cannot absorb more taxes. The only possible solution is to cut expenses quickly and dramatically. They will eventually do exactly that, but only as a last resort after begging the federal government to fund their own financial mismanagement. Sooner, rather than later, these governments will have to start laying people off. These will be people who thought they were essential. People who thought working for the government meant job security.

Governor Newsom is already asking to borrow money from the Federal Government to pay unemployment claims. How does he intend to pay that back? He is already hinting at drastic budget cuts. Few in the MSM realize what this really means.

Some governors are focused only on the need to be safe and open the economy slowly and responsibly. Whether they realize it, or not, they are instead blundering into a far more dangerous situation. The economic impact of this shutdown is going to be far more deadly than COVID-19 and that will soon become impossible to ignore. If you think people are angry now because Governor Newsom won’t let them go to the beach, wait until they realize the economic damage being done to the golden state.

Some predictions are easier than others. I predict that sooner, rather than later, there is going to be ten times the reporting on the economic disaster than there will be about COVID-19. It won’t be long before the COVID-19 death toll is the least of our worries. That is particularly true when it becomes obvious that the number is deliberately over inflated. Every restriction put in place to “safely reopen the state” greatly increases the danger of financial meltdown. But, it is already too late. This economic storm is on the way and nothing is going to slow it down. The more a state is governed by a socialist mentality, the more the severe the economic destruction. Margaret Thatcher warned us. Eventually you run out of other people’s money. When you stupidly order people to go home and stop working that happens sooner rather than later.