October 28 2008 (LPAC) -- The fraud perpetrated by California Gov. Arnold Schwarzenegger, with the connivance of the Democrats who control the legislature, that the 2008-09 budget was "balanced," has completely unraveled, with devastating consequences ahead for the people of the state. The "balanced budget" was achieved, 85 days late, by postponing $7 billion of payments to next year, to be covered with a bridge loan this fiscal year; approximately $10 billion in cuts, mostly in health care, social services and infrastructure; and leaving $3 billion for more unspecified cuts before the end of this year, to be done at a special session after the Nov. 4 election.

Yesterday, Arnie's office leaked that the additional shortfall to be addressed by the special session is not $3 billion, but will be at least an astounding $10 billion -- astounding only to those idiotic enough to believe that there is still a debate as to whether the state has entered a "recession," or those who cling to the delusion that the state has a "spending problem," and not a "revenue problem."

In reality, revenues are plunging, as the state's economy is in free fall. This should not be surprising, as the state has gone from a fully integrated high tech agro-industrial economy, into one based on financial services (especially real estate), tourism and entertainment. The fictional belief pushed by Hollywood's con artist and bully Schwarzenegger, that the state is leading the way into a new Green economy, based on energy-efficient technologies, which will bring on a new era of prosperity, is being crushed by the reality of the global meltdown. Expect a snarling, angry Governor-as-Terminator to preside over the upcoming special session, demanding increasingly deadly cuts, in the name of "fiscal responsibility."

In the meantime, Arnie will be traveling to "battleground" states, to campaign for John McCain, while his wife, Maria Shriver, is stumping for Obama.