Al Jazeera's Fault Lines program has this 25 minute report on California and the protracted political and economic crisis that we face here in the Golden State. California represents nearly 13% of the United State’s GDP, it is the world's eight largest economy and we're broke. But the solution that the Governor has proposed is balancing the budget on the backs of the poor. It's shock therapy, California-style.

California is in crisis. The state is $24bn short of balancing its books this year - and it may run out of cash to pay its bills in a matter of weeks. Avi Lewis travels to South Central Los Angeles to learn about the political causes and the human impact of shock therapy, California style - and gets a glimpse of how the next chapter of the global economic crisis is likely to unfold.

California is forecast to run a $41.6 billion budget deficit over the next two fiscal years. California is constitutionally required to have a balanced budget and the recourse of printing money is not an option.

The two-thirds majority requirement for any new budget means that gaining enough support is unlikely, as Democrats refuse major cuts in spending and the Republicans oppose tax rises, leading to the inevitable stand-off. So, as the stalemate continues, California’s revenue continues to shrink perilously low in the face of the deepening recession. Our budget battles year after year have been the cause of our demise.