California is so broke that they can't even borrow money to pay their bills. They've spent it so fast they can't even issue the tax refunds that are owed. They are sending out IOU's to indicate recognition of debt but nothing more. Try to stimulate your landlord, utility company or grocer with an IOU.
Tuesday, July 07, 2009
Time for Governor Frankenstein?
At least the good Doktor knew how to stimulate a corpse, which might be a useful skill in moribund California:
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13 comments:
Hm. "As California Goes, So Goes the Country"?
nice.
California, the USA's Berlin?
Can't say that it could have happened to a sorrier group of liberal political spendthrifts. I almost feel sorry for the population, but they elected the politicians...
Gmac
I'd buy all the California IOUs I could. They bear 3.75% interest, which is more than dollars or U. S. government bonds (which are both IOUs) do.
Eventually the California ones will be redeemed. I can't see a genuine default in this bogus crisis yet.
"I'd buy all the California IOUs I could. They bear 3.75% interest, which is more than dollars or U. S. government bonds (which are both IOUs) do."
This is, of course, predicated on inflation holding steady, which is a bet I wouldn't be willing to make right now.
I doubt things will get better anytime soon. The Speaker refuses to discuss long-term budget cuts. But, when tax'n'spend is a religious belief, you might as well try persuading a Baptist to take up dancing.
Art
And Art wins the internet today.
AIUI, California won't accept its own IOUs as payment of taxes.
Really inspires confidence, huh?
Related: The banks aren't cooperating.
Check out some of our political districts. The 1991 reapportionment gave the Dems the maximum number of districts with automatic majorities.
Living in the most conservative county in California, we generally vote against the crap on about a 3 to 1 margin but can't break the Lib stranglehold. Many time the crap ends up passing by only about 1% or so, but unfortunately that's enough.
I've got to give Arnie some credit. When he first got voted in he tried to get a package of five conservative bills passed in a special election. After the Dems told the usual lies and they were all shot down, he caved and became the Lib lapdog he is today.
I agree about inflation, but today, 3.75% is a pretty good return on investment. California is a better risk than any bank, and CDs are around 2% if you look.
Dollars must be pretty worthless if a moneylender like a bank can't make a profit on them.
Shane's right but nobody wants to acknowledge the role gerrymandering plays because it's more fun to poke the bloated horse-corpse. Voting makes no difference - since 1991 we effectively have a state Politburo not a state Government.
And worse too, the IOU's are not for all and everybody - just the Citizens. Like I commented at Uncle's after seeing Bill Whittle's rejoinder, those who need *temporary* assistance get IOUs, the aged, blind and disabled get IOUs, those hapless slobs in drug prevention treatment services get IOU’s — but the bloated Public Employee Retirement System gets CASH, the University of California Professoriat gets CASH, the weasel Legislators, the many bogus Board Of ThisAndThat Appointees get CASH, and legislative Employees get CASH…
Cash is still King in the land of the California Union Apparatchiks - so I guess it's a lot like Chicago.
Ain't the first time banks refused Kalifornia-issued IOU's. Won't be the last, either.
Speaking of silly Kalifornia:
http://aroundotown.blogspot.com/2009/07/failed-logic-of-american-state.html
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