Here's another good post this morning from The Market Ticker - explaining what's going on in California with the state issuing IOU's for payment of services. This bears watching, as our government as a whole continues to spend way beyond its means:
Link: California: The Shape of Things To Come
Excerpt:
So now California is literally stealing tax refunds - that is, over-payments, and issuing "IOUs", never mind that those funds are not theirs. In any ordinary business such a game (while there was any cash available) would lead to the proprietor being locked up for theft-by-conversion.
In addition so-called "entitlement" payments to some are being made with these "IOUs", which are in fact nothing more than a promise to pay next Tuesday for a hamburger that is supposedly owed today.
In truth there is no hamburger; the cow was slaughtered and eaten six months ago. It has long since been "recycled" into fertilizer, yet the charade continues onward for another day, with the sheeple believing that somehow these pieces of worthless paper make it "all ok."
The banks, assuming they stick to their Friday deadline, understand this. They're saying "uh, you know, come October those things might not actually BE good!" That's a problem, you see, as someone's going to be stuck with the bill if that happens.
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