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View Full Version : California Poised To Issue IOUs



Erayd
29-06-2009, 12:26 AM
Hard to really comment on this, so I guess I'll just post the link and let you guys read.

Governor's last stand: his way or IOUs (http://www.latimes.com/news/local/la-me-arnold28-2009jun28,0,2038455.story)
Reporting from Sacramento -- Gov. Arnold Schwarzenegger, seeking to conquer what could be the last budget crisis of his tenure, is engaged in a high-stakes negotiating strategy with lawmakers that could force him to preside over a meltdown of state government.

As legislators have scrambled to stop the state from postponing payment of its bills and issuing IOUs starting next week, the governor has vowed to veto any measure that fails to close the state's entire $24-billion deficit.

[continues here] (http://www.latimes.com/news/local/la-me-arnold28-2009jun28,0,2038455.story)

ZapperBoy10647
29-06-2009, 03:23 PM
I hope he makes it through.

Terry Porritt
29-06-2009, 03:45 PM
"California Controller John Chiang has announced that on Thursday he will begin issuing IOUs on the scale of $3 billion a month, delaying payments to college students, welfare recipients, the elderly, the blind and the disabled. The state is on track to run out of cash by the end of July."

Well, that's how Capitalism works...............:clap

Edit:You'd better get your bags packed Joe, ready to make a dash for NZ

ZapperBoy10647
29-06-2009, 05:21 PM
"California Controller John Chiang has announced that on Thursday he will begin issuing IOUs on the scale of $3 billion a month, delaying payments to college students, welfare recipients, the elderly, the blind and the disabled. The state is on track to run out of cash by the end of July."

Well, that's how Capitalism works...............:clap

Edit:You'd better get your bags packed Joe, ready to make a dash for NZ

Its america, the rich get richer, the poor get poorer.... what do you expect?!?

americas never been about helping eachother, atleast since the british came.

Sweep
29-06-2009, 05:29 PM
Hmmmmmm.........

Maybe I'll send Telecom an IOU in exchange for the "you owe us" that they sent me.

Worth a shot I reckon.

SurferJoe46
29-06-2009, 05:58 PM
I don't expect the US to be what it was in it's Halcyon days - every again.

California is on the verge of total financial bankruptcy - it is already morally so.

The IOUs are part of a giant scare tactic - and it worked the last few times they did it - but it took a while for any cash to be actually flowing into accounts since banks and financial institutions do NOT have state licensing in ways that they possess Federal licenses and the state has little control over policies and attitudes that the banks might have toward California's IOU program. They got hinky on honoring the IOUs.

Right now the Governator wants to furlough all the state workers for a few days a month but even if he out and out fired each and every one of them - the California debt would only see the negative balance move one decimal point in the right direction.

Futility is the object and like a cat in a sand box, the Sacramento political machine's policies have only been used to hide the inevitable - the state's broke and no fix is in sight.

Right now, the Federal IRS has set into code (before it becomes an active and enforceable law) that the futures of any life insurance payouts to the survivors of an insured person who dies, will have to be paid on a "Future Earnings Schedule" and be duly taxed NOW - not at the time of death!

Imagine that >> The Feds want to tax future payouts death benefit NOW.

If your great Uncle Willie even thinks that you will get a great hunk of cash when he dies, then you - or your parents if you're a minor - will have to estimate the amount of inheritance you might get and start paying it forward NOW instead of waiting for the required death.

Another (old, now new) point: The 501(c)(3) status of the churches is in reconsideration by the IRS now too.

What's a 501(c)(3)?

It's the tax-exempt status loophole/law of the churches - which are protected by the Second Amendment (The Bill of Rights) of the US Constitution.

Since the states and the Feds are really broke, and they see all that money sitting in Rome, Salt Lake City and other places - and church-owned shipping companies and farms and factories and schools and retirement villas and luxury haciendas for priests and preachers in tax-exempt countries that do NOT recognize US extradition laws - they want that cash now and before it gets out of the US!

Connecticut has already placed their state auditors in the Roman Catholic churches to make sure that any coins and monies go to church activities and not an estate in Belize, like so many of the Catholic priests get after they retire from other US states in the US. Connecticut was the retirement portal for the church for many decades since the 501(c)(3) system was initiated.

The call right this very moment on television and radio (in the local and statewide papers too) is for a new Constitutional Convention in Sacramento to get "rid of the bums" in the California legislature and elect new ones - new bums that is!

From The LA Times: George Skelton, Capitol Journalist:


Sacramento -- Once again, Capitol politicians are fighting over how to fix the chronically bleeding state budget. And again, the answer should be clear: It's unfixable.

It will remain unfixable until California's system of governance is pulled apart and overhauled.

Stay tuned for more. California is getting a bunch of politicians to go to NZ and beg for money.

R2x1
29-06-2009, 09:23 PM
Sorry, they are going to be out of luck We are spending the lot on dameships, knighthoods, cycleways and other vital accessories.
We may be able to give you a job lot of wanna-be rugby players who could probably qualify for picking up litter, if it's not moving. ;)