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Economics of Californian Secession

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Thread replies: 19
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File: calexit .jpg (61KB, 1034x598px) Image search: [Google]
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http://www.cnbc.com/2017/01/27/california-succession-movement-starts-gathering-petition-signatures.html

So it's clear that the California secession isn't going to be a joke like Texit was and that there are some people seriously committed to Californian secession. Regardless of your thoughts on the President, what would the economics of this secession entail?

Let's say California seceded today. I'm going to analyze each of the following subjects:

-Water: Isn't California's water system hugely inefficient? Agriculture seems to be the biggest user of water in the state and most of the state's water seems to be coming from the Northern part. Could issues surrounding water transportation cause a decline in California's agriculture industry?

-Silicon Valley: Silicon Valley is a huge boon to the economy of California and the United States. But how long would they stay in California? After Brexit, it was speculated that big banks, like Goldman Sachs and others, would move operations from London into Continental Europe to stay connected with euro denominated clearing. Could something similar happen to Silicon Valley, with most companies moving to areas of similar technical expertise like Washington or areas in the East Coast (Boston, perhaps?).

-Taxes: California pays for a big chunk of the United States' federal revenue, but it also takes out a large amount in subsidies. At the end of the day, even if this is a positive balance, what effect would losing these subsidies have on the Californian economy? Going back to agriculture, presumably a lot of California's agriculture gets generous farm subsidies, like most places in America.

-Debt: California also has a lot of debt and unfunded liabilities. Without the guarantee of the United States Treasury behind California's bonds, would they have the same reputation as Treasury bonds and would investors still buy them in the same way that they currently buy Treasuries?

What do you guys think?
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>He still thinks all of California would leave
Northern California hates you fucks in Southern and would gladly stay.
>>
>>1784667
they can't secede any more than texass can. Nobody cares if southern states leave, they contribute nothing. Cali keeps the US afloat financially though.

water comes from Colorado and every state in between. Not a problem, if Cali leaves the western US will willingly go with it.

silicon valley has nothing in common with the rest of the US, no reason to move.

farm subsidies go to grains, Cali grows fruits and veggies. Even if they lost subsidies they could make them back by raising the price of produce sold to the US.

Cali's debt is safer than US debt in general, especially with the current government in place. These are the same faggots that twice shut down our government in the last 2 years and have threatened to default on US debt. If anything California bonds would be safer than US treasuries.
>>
>>1784667
>most energy and water comes from out of state
>economy is based on free access to the rest of the US market
>half the state is illegal immigrants kept from raping the rich numale faggots to death with a steady supply of federal gibs

wew lad
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>>1784667
Secession is illegal.
There'd be a war, and since Californians are numales who fear guns, it'd be over by Christmas.
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>>1784757
>you fucks in Southern

I'm not from California, I'm from the East Coast.

>>1784777
>raising the price of produce sold to the US

Wouldn't they just get outcompeted by cheaper foreign competition in Latin America if they have to price in being more expensive?

California's debt doesn't look too stellar IMO. State and local pensions owe upwards of 200 billion (http://www.latimes.com/projects/la-me-pension-unfunded/) and that's just from the pensions alone.

And the claim about the West depends on what your definition of "West" is. California leaving alone already risks a war as >>1784792 said, but if California takes a big chunk of the country with it, then war is inevitable. Even if it was just the Pacific Coast, I'd say there'd still be a war.
>>
>>1784667

>Water
Yes, Cali imports most of its fresh water. This would need to be ironed out before they secede, or Napa Valley is going to literally shrivel on the vine (see what I did there?)

>Silicon Valley
If they have a seat at the table for a new Cali, they'd probably stick around. They're pretty entrenched in their existing infrastructure, and those mega-campuses cost a lot of money to build. Best bet is that they'd push for special governmental/tax privileges.

>farm subsidies
Cali doesn't make any produce that's exclusive to that region, so far as I'm aware. They'd essentially become mexico for trade purposes regarding produce.

>Debt
Safer than most state-level debt, sure, but if/when they secede, they'll likely have to develop a new currency, as they'll no longer be governed by the US, and as a result, would need to find a new currency to operate under. This, in turn, would likely destroy the financial presence in LA (Wells Fargo, US Bank, BofA, etc. all have large contingents of employees/management structure out there). Essentially, Cali would be fucked from a debt perspective because they'd be in limbo financially due to new trade negotiations being necessary and the fact that their new fiat would require a buyer, and since this is entirely theoretical at this point no buyers are (obviously) forthcoming.

Tech and Hollywood is not the only thing in California, but it would likely be the only thing that stays if they secede. Personally, I think it's much more likely that Silicon Valley secedes and becomes its own microstate, similar to a Hong Kong or Singapore, with massive issues with cost of living and wealth inequality. The rest of Cali relies too much on resources or trade with the rest of the US to be relied on for secession.
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>>1784777
trips speak truth
>>
>>1784777
>Cali keeps the US afloat financially though.
Fuck you're dumb.
>>
>>1784757

This.

It's really just socal that is batshit crazy.
>>
>So it's clear that the California secession isn't going to be a joke like Texit was and that there are some people seriously committed to Californian secession.
You base this on what? A couple of rabble rousers? Child, you probably weren't old enough to remember the Texan rabble rousing in 2009.
>>
>>1784667
>the California secession isn't going to be a joke
hahahahahHAHAHAHAHAHAHA
>>
File: Bitcoinstothemoon.gif (499KB, 480x228px) Image search: [Google]
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>>1784667
>mfw statehood is eternal
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>>1784777
>this is what Cali faggots really believe
can't wait to purge you faggots like open game
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>not talking about how to make money, sell arms to both sides
US gooberment already has lots of guns. Can money be made selling Texan guns to Calis?
I know some Calis have earthquake survival kits. But that kind of shit could go way up in price in a Trump/nu-male showdown right? Time to stockpile for resale
Water bottles
Knives
Crossbows
How about sign making materials? If there's an embargo how will SJWs demonstrate for the cameras? What else?
>>
California leaving could actually be really good for the united states
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>>1784667
if california secedes Jefferson becomes a state and takes away the water rights.

i honestly hope it happens
>>
Nobody. But nobody. Secedes from the union.

Pic related there was a Republican President the last time the Democrats tried to secede.
>>
>Calexit happens
>Trump sends soldiers to end this clear cut act of treason
>California can't fight back because no guns outside of Oakland
>California becomes an military occupied territory for the next several years before it can be adopted as a state again
>Californians can't vote in the next election because they're not a state until Trump says they are
I hope Calexit happens just so I can see Commiefornia burn.
Thread posts: 19
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