California Melting Down

Dire budget projections are coming out of California, one of the ten largest economies in the world. In February, the state will run out of funds, reports The Times of London. Its debts are increasing at the astonishing rate of $1.7 million per hour. Bill Lockyer, California's treasurer, warns that $5 billion of public works projects will be halted as the state's leaders worry about an Iceland-style financial meltdown. The remedy proposed by "The Governator" Arnold Schwarzenegger, is a 1.5 percent sales tax hike–the same tax increase that led to the ousting of his Democratic predecessor and that Arnie vowed to revoke if elected.