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Hey California, Can You Spare An IOU? Print E-mail
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Written by Stanley Kazwell, Jr   
Friday, 03 July 2009 13:21

The Famous Hollywood Sign What does the most financially strapped state in the union do when they run out of money?  They pay their bills with IOU’s.
California is more than merely a microcosm of American style socialism, it is the big kahuna!  After all, it is the world’s 6th largest economy.  It is proclaimed as the richest, most populist, most socially conscious state, and yet it has the most debt.
As the state’s politicians refused to agree on which sacred cows (spending programs) to slaughter, the cash ran out.  On July 2nd, 2009, those doing business with the state, taxpayers who are owed tax refunds, and local governments all started receiving IOU’s (called warrants).
A story in the New York Times makes the following comparison.  “So California is now just like a family that spends more than it takes in and holds off on the cable bill while paying the mortgage: its expenses are greater than its revenues.”  

One has to wonder if the politicians in Washington will see it the same way.  Would you care to bet?

 


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Hey California, Can You Spare An IOU?
 What does the most financially strapped state in the union do when they run out of money?  They pay their bills with IOU’s. California is more...

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