The news this morning is covering Governor Schwarzenegger’s call for a fiscal emergency in California, due to a possible budget shortfall of $14 billion. When I tried to visit the State of California’s budget website, it was down. It’s big news, from a big State.

But is California in financial trouble? Growing foreclosures pushing as much as a 200% growth year over year, shrinking wages, rampant Federal Reserve monetary inflation, and continued consumer overspending may give people the idea that California is in trouble, but that’s just not true. The people of California are not experiencing a fiscal emergency, the government is.

I call repeatedly for people to understand that you are not your government, and they are not you. What defines you in an economic sense is merely those around you who you pay for products or services, or who pays you for products or services. That defines an economy: the billions of quick interactions that exchange products/services for money.

Read the rest of this article at the anarcho-capitalism site.