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PRESS RELEASE


Arnie Declares `Fiscal Emergency,'
Will Kill Californians

LOS ANGELES, Jan. 10, 2008 (EIRNS)—California Governor Arnold Schwarzenegger declared a state of "fiscal emergency" this morning, as he outlined budget cuts which immediately threaten the lives of the poor, elderly and disabled. "We are facing a very tough situation," he said, calling on people in California "to enact true budget reform."

The "reform" would be imposed in two phases. First, he outlined murderous budget cuts, to attempt to cover the $3.3 billion budget deficit for the last six months of the fiscal year 2008, followed by even larger cuts to reduce the $14+ billion deficit for 2009. Second, he wants a "permanent fix," in the form of a Constitutional change which would force automatic cuts whenever a shortfall looms. This would require a referendum, which he has asked the legislature to place on the November ballot.

Schwarzenegger presented a budget which contains $4 billion in cuts in already inadequate education funding; reduction of Medi-Cal health services to the poor; harsh cuts in aid to the low-income blind, elderly and disabled. It was evident, in his State of the State address delivered on January 8, that the Governor is aware that such cuts will terminate lives. He told the legislature that he sees "that the consequences of cuts are not just dollars, but people.... I mean, talking about fiscal responsibility sounds so cold when you have a representative for AIDS patients or poor children or the elderly sitting across from you."

He continued: "Yet, fiscal responsibility, like compassion, is a VIRTUE because it allows the necessary programs in the first place."

When one unwinds his tortured syntax, it is clear that he is saying these "sacrifices" are necessary because he will not allow any action on the real flaw which the growing budgetary shortfall exposes: The post-industrial, deregulated, globalized financial system has already broken down. This post-1971 system is the handiwork of his controller George Shultz, who could be seen, smiling, next to Arnie's wife, Maria Shriver, during the State of the State address. Shultz's "Schwarzenegger Project" is a test run, to see if the son of a hard-core Austrian Nazi can impose the kind of brutal, fascist policies which a previous Shultz puppet, General Pinochet, imposed on Chile through a military dictatorship. The "Schwarzenegger Project" is closely coordinated with another, currently running Shultz operation, to make Arnie's "soul-mate," New York City Mayor Bloomberg, President of the U.S.

Schwarzenegger's budget cuts, if passed, will be 10% across-the-board. In addition to the damage done to the poor, elderly, disabled, and the education system, he has proposed closing down 48 state parks, and releasing 28,408 "low risk" prisoners, to cut over 6,000 employees from the prison system. He also proposed expanding infrastructure investment, though this is part of the Shultz-Rohatyn plan for privatizing infrastructure.