California IOUs Due To Be Issued Today,

San Jose Mercury News:

SACRAMENTO -- In a move certain to draw national ridicule and exact financial hardship on business owners and taxpayers across the state, California is slated today to begin paying billions of dollars in bills with IOUs instead of cash.

Nearly 30,000 IOUs totaling more than $53 million are expected to be sent out by state Controller John Chiang this afternoon, the day after Gov. Arnold Schwarzenegger declared a fiscal emergency in the face of a staggering $24.3 billion deficit. The state Legislature remained in its familiar state of gridlock, raising the prospect of an extended standoff that further damages the state's financial reputation.

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Read the whole story: San Jose Mercury News

Comments

[SonofSolomon]

This what happens when people think they can keep things going as usual without raising taxes. Incredible.

[dnddays]

Technically, since all paper money is a form of IOU, Californians can sleep easy knowing their financial future is secure.

[commentator101]

I hope these businesses that accept these IOU's understand they are extending credit only to California, and not to the federal government. There can be no federal bailout of California, IMO.

[JuliusR]

How about a bailing out OF Calif?

[curiousasheck]

The entire paradigm of our economic existence is held hostage by our inability to think out of the box and our inexplicable reluctance to throw everything we have into innovation in this area.

[Moshe]

Wimpy:" I'd gladly pay you Tuesday for a hamburger today."

[dnddays]

You have solved the financial crisis, my friend. Pay people in hamburgers. Todays Nobel Prize issued to Moshe for relishing the possibilities of a hamburger economy.

[Jond0]

They're part of our biggest manufacturing sector, so why not? Truly a fast food nation.

[DamaskinosWasRight]

Perhaps it would boost their economy if they decided to stop the policy of allowing GANG STALKERS to openly and notoriously stalk, harass, poison and irradiate people?

It would be like a return to the REAL AMERICA you read about in books.
.

[DamaskinosWasRight]

Legalize it.
.

[Dwight5]

It'd be a start.

[LunaPark]

There is no more money. Cut spending, or raise taxes, or both. IOUs are just going prolong the pain.

[mountainweb]

The bottom line is that they are so far in debt that they have no choice but to cut spending AND raise taxes. A key problem is that the legislature, both parties, must except the face that you are going to have to cut spending, trying to pass a budget that only sinks the state further in debt in not the answer. Making the taxpayers the fallguy in this is NOT the solution..­.

[Mormon4Truth]

Won't these banks be insolvent if they accept IOUs? Maybe I can use IOUs to pay my mortgage.

[bola47]

yes, let us all send the credit card companies iou's. oh wait, only the govt. and business can do that. we mortal citizens have no rights.

[JuliusR]

Is not your credit card debt already an IOU?