appointed Board of Overseers would have full powers to cut public spending, raise existing taxes or introduce new taxes or charges until the budget deficit has been eliminated in a sustainable manner. Such direct financial rule reduces the state of California to a legally and financially incompetent minor.  Because that is exactly the way the state has acted and continues to act, this is both efficient and fair.  The only irony is that this direct financial rule rule would be excised by an entity appointed by a federal government that itself is structurally incapable of putting its fiscal house in order.  But that is an irony Californians will have to learn to live with.  Beggars can't be choosers. Maverecon: Willem Buiter Willem Buiter's blog ran until December 2009. This blog is no longer active but it remains open as an archive. Professor of European Political Economy, London School of Economics and Political Science; former chief economist of the EBRD, former external member of the MPC; adviser to international organisations, governments, central banks and private financial institutions. Maverecon: a guide Comment: To comment, please register with FT.com, which you can do for free here . Please also read our comments policy here. Contact: You can write to Willem by using the email addresses shown on his website. Time: UK time is shown on posts. Follow: Links to the blog's Twitter and RSS feeds are at the top of the page. You can also read Maverecon on your mobile device, by going