nytimes.com:
LOS ANGELES -- The only thing worse than being issued an i.o.u. rather than a check from the State of California may be not getting the i.o.u. at all -- at least in time to meet the deadline of your bank.
Big Banks Don't Want California's IOUs - WSJ.com
California IOU holders may turn to check cashers | U.S. | Reuters
California IOU's Bunch of Bull if you ask me - Beesource ...
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"accepting these IOUs in lieu of payment for state taxes and other services is just stupid and affects the credit risk behind the IOUs."
Jct: Borrowing bank notes and paying interest to use them is even stupider than using IOUs. Why represent California's wealth with their chips for a fee when they can represent California's wealth with California's chips for free? There's nothing wrong with small denomination California State IOUs if anyone can pay their taxes with them.
When Argentina"s government workers were faced with cuts, their unions talked 6 state governments into paying them with small-denomination state bonds which could be used to pay for state services and taxes by everyone.
When the local currency is pegged to the Time Standard of Money (how many dollars per unskilled hour child labor) Hours earned locally can be intertraded with other timebanks globally! In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours. U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture.
See http://you
The dumbing down of America is working very well,California votes for a bad actor ,and get Governor who can't Govern.
hat tip to http://www
Too many freeloaders looking for goverment (taxpares) programs to rape.
Another failed Republican governor.
California is by far the fastest decaying state in the U.S.
Governor is not the problem in this state! Prop 13, which democrats are as responsible for as anyone is a key part of the problem as well as refusing to cut expenses. The legislature as REFUSED to consider cutting expenses as revenue fell. They last voted yet another deficit budget in the face of 23 billion debt, you can hardly blame the governor for that stupidity.
Prop 13? So your solution is to raise property taxes during a Depression brought on by Republicans?
Are you a B-movie actor?
THe party is over! All the state unions need to renegotiate all their contracts! Babies born to illegal immigrants should not be eligible for welfare! Repeal Prop 13, People that own million dollar homes should not only be paying 2 thousand dollars in property tax! Legalize and tax marijuana! There are solutions, the people of California are acting like children! The city of LA should have never provided 2 million dollars for security for Michael Jackson funeral!
Paying welfare to illegals is DUMB but politically correct in a state where being a PC liberal is the goal....
So let me sum it up? California is facing economic collapse due to illegal immigrants, Prop 13 and welfare?
Got some facts?
Talk radio gonna be on soon, better git.
I think CA tax payers should start send the state IOUs. After all, fair is fair.
i think california is like the oil filter commercial as it applies to taxes-------"you can pay me now or pay me later"
The California legislature is considering a law that would require the state to accept them for taxes and services. If this is passed this bill would turning these IOUs into currency. This is not only illegal under the US Constitution but may even be an act of secession since the power to coin and print money is something only separate and sovereign governments can do. One of the first things the Confederate States did when they attempted to secede, was to print their own currency.
The Governor of Texas only talked about secession. California may be taking the first quiet steps to leaving the Union. The next question is what if anything, the White House will do about it. Interesting that this happens when Obama is out of the country,
By the way the power to coin and print money right now belongs to the Federal Reserve, which is not part of the Federal Government. The Federal Reserve is already violating the Constitution. If the Fed can do it, so can California.
First , look at the currency in your pocket. who signs it? Secretary of the treasury , correct? Do you see Ben Bernake's name on any US Currency?
Currency creation is a power of the US government under Article 1 , Sec 8 of the Constitution. Article 1 section 10 forbids the States from issuing letters of credit (i.e. currency) The California IOUs certainly look like "letters of credit" especially when they pay interest.
As for the Federal Reserve, it was created in 1913 by Congress , its head is appointed by the President and approved by Congress . In short the Federal Reserve is an agency of the Federal Government and the power to create money has been delegated by Congress to this agency. The Federal Reserve may be a quasi public , quasi private agency but in effect it operates under the control of the Federal government.
Bottom line is that the California IOUs may be illegal and a direct challenge to Federal authority. The State of California is not the same as the Federal Reserve and they do have the right or the power to treat these IOUs as currency.
Also accepting these IOUs in lieu of payment for state taxes and other services is just stupid and affects the credit risk behind the IOUs. California needs cash to pay these IOUs by the due date of Oct 2, 2009.
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First Posted: 07- 8-09 09:26 AM | Updated: 07- 8-09 09:31 AM