CALIFORNIA BUST - BROKE STATE TO ISSUE IOUs WITHIN HOURS
By Daniel at 30 June, 2009, 7:39 pm
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“The state’s deficit is roughly a quarter of the state’s general fund and has been widening this year as tax revenue has plunged. That has left the state with too little money to pay all its bills.
Roughly $3 billion worth of IOUs will be issued in July unless a compromise on closing the deficit is reached quickly. They will be sent to state contractors, college students, welfare recipients, low-income seniors, the disabled and others who depend on or deliver state services.
“It’s really incomprehensible, from our point of view, that the governor will allow the state to run out of cash when he has a bipartisan solution,” said Assembly Speaker Karen Bass, D-Los Angeles.
Bass and Steinberg accused the governor of using last-minute maneuvers to push a laundry list of policy reforms rather than addressing the budget gap.
“It’s not the way to go about working with people,” Steinberg said. “It’s not the way to go about working with your partner.”
Democrats, the majority party in both houses, want to solve the deficit by cutting $11 billion in spending, raising the vehicle license fee by $15 to keep state parks open and increasing taxes on tobacco products and companies that drill for oil.”
The full article is at:
http://www.mercurynews.com/news/ci_12719306
Welcome to the GRAND GLOBAL DEPRESSION.
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Jct: There’s nothing wrong with small denomination California State IOUs if I or anyone else 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 and which everyone accepted as useful currency. Best of all, 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 my banking systems engineering analysis at http://youtube.com/kingofthepaupers
Too bad California State IOUs won’t be accepted in payment for state taxes and services like state bonds were in Argentina. Too bad California State IOUs will be denominated too big to use as local currency. Too bad Argentina people were smart enough to avoid the tent-cities catastrophe and California people are too stupid to follow their example.