Thursday, July 2, 2009

California pays in scrip

The California Legislature

CLICK HERE for an article from the San Jose Mercury Newspaper.

If you do business with the State of California - if you're a creditor, you'll be one of 30,000 people who receives an IOU from the Golden State this month ($3.4 billion this month). It's good as cash (?).

It reminds me of the scene from the movie DUMB AND DUMBER when the two heros blow $250K in cash in a couple of days and leave IOU's in the suitcase that contained the money. Except in the case of California, it's $26.3 billion.

The state MUST cut entitlements. They MUST eliminate the socialist agenda that has driven us on the rocks financially. I'm waiting to see how long it takes them - you know they want to solve the problem by raising taxes.


Opus #6 said...

I remember hearing once that California leads the nation. Yeah. Leads the nation right into the ground. And I LIVE here.

darlin said...

I sit here and wonder if I have just read correctly, this is how unbelievable this is! I think that I'd best either go and reread that to ensure I have read correctly or just go and get me a hot cup of tea..... tea wins!

LL said...

California is broke. The state is paying creditors with IOU's.

There is no telling when they'll have enough money to pay the bills.

California is required to BALANCE ITS BUDGET. So that creates a problem for a state known for taxing the "rich" to create worthless programs in the name of social welfare.

darlin said...

This sounds so much like Alberta when Ralph Klien was in government here and taxpayers are still suffering because of his decisions. Klien made cuts in all the wrong places and bonuses for all the wrong people. We never did get to the point of IOU's though, I have never heard of this in my time and I am astounded!

The Fien Family said...

Even if I wanted to find a teaching job, I can't...and probably won't be able to for a long time now!

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