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IOU Part Two: California To Issue IOUs For Second Year In A Row
The insolvent state of California which, just like the country of the USA, is operating without a budget (and who needs a budget when the Fed-PD complex will buy the bulk of anything and everything needed to fund ongoing daily operations), has once again ended up on the verge of bankruptcy. As a result, it has just passed a measure which for the second time in as many years (going all the way back to the Great Depression), will allow it to use IOUs in lieu of payment on everything from supplies to contracted services and health-care
costs, so it can actually preserve cash to make payments to its generous debtors. On the road to banker serfdom, California has once again reached its goal.
From Bloomberg:
California lawmakers passed a bill to let recipients use state IOUs to pay fees and taxes owed to the government in Sacramento, if the warrants are issued.
The bill, from Assemblyman Joel Anderson, a San Diego Republican, passed the Senate unanimously. It requires all state agencies to accept registered warrants issued to pay for goods and services. The Assembly unanimously approved the measure in September. The Senate vote puts the legislation before Governor Arnold Schwarzenegger, whose budget aides oppose it.
California may start handing out warrants to pay some bills within two weeks to conserve cash, Controller John Chiang, a Democrat, has said. The need for the IOUs arose because a legislative logjam over how to erase a $19 billion deficit has prevented passage of a budget. The state will use the chits for everything from supplies to contracted services and health-care costs so it can make payments on priority items such as bonds.
The legislation is aimed at offsetting the hardship IOUs can impose on those who receive them, Anderson said, citing the experiences some recipients had with last year’s warrants.
And who wouldn't love to accept warrants from a state that is not only once again bankrupt, but can't even balance its budget, as it is required by law. And the supreme irony is that not even this latest financial gimmick will postpone the inevitable:
Schwarzenegger’s budget office opposes the bill because it
may reduce the state’s cash position to less than projected,
said H.D. Palmer, a spokesman. Draining the state’s coffers
would defeat the purpose of the IOUs, Palmer said.
Less than projected? Based on what non-existant budget?
The tragedy of America's bankruptcy (oh wait, it can never go bankrupt, we keep forgetting) will be a long and painful one.
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Would you say TX and FL are doing pretty well?
Honestly, the list pretty much looks like a list by population as much as anything else.
I think the only problem with the USA is all these goddam PEOPLE fucking it up.
i heard that Arnold will be going back in time to get his parents to sneak into America before he was born to give him U.S. citizenship... so then he can become President.. which will be just in time before our space battle with Cygma IX
(war funded by Goldman, of course)
Cygma IX has oil?
Come on for heavens sake, just charge every Kalifornian a one time tax and get it over with!
Hmmm... $19 billion divided by about 12 million citizens (not counting the illegals) sounds like a pretty big one-time hit to me.
$13 trillion (not counting unfunded liabilities) divided by 300 million (not counting illegals) sounds like a pretty big one-time hit to me.
Double down?
+100
It sure will be a long and painful one, and maybe it should. The way I figure we have been deluded into thinking that we can do anything we want without any consequences. Even in our personal lifes when we interact with others, we will show rank disrespect to someone and think it's normal like second nature. Not thinking we are rude because rude and greedy and gluttony and much more is what the norm for many of our citizens. By having it happen over a long period of time and also all the promises being reniged on, will shake people out of their delusion and actually see that your not as special as you thought you where.
Yeah, that's not going to continue much longer, because an armed society is a polite society. And soon everyone will need to be armed.
There's we and there's them.
Ole George Washington will certainly find this interesting:
http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/08/large_fish_kil...
Hilarious. A fish kill of 5 to 15 thousand fish of all species related to low oxygen levels but not related to the BP spill. Don't want to jump to any conclusions. Maybe it was because of anthropomorphic global warming.
This was a significant part of the Weimar hyperinflation. Companies issuing their own currency.
Also, not sure why this does not apply, US Constitution Article I, Section 10:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
The Land of the Free Love, Caring and Kindness, Source of All Illumination and Knowledge does not Emit Bills of Credit.
We mail them.
You expect Eric Holder to uphold Constitutional law? That's hilarious.
CWOs anyone?
The rush to blame Californians for all of the state’s problems with budgets, corruption, crime and socialism is somewhat misplaced.
Washington, DC, has made Californians pay for the national programs that it imposes upon California, all primarily related to immigration. Major corporations, seeking an ever increasing low-paid labor force, put pressure on federal and state law makers to make California taxpayers pay the associated increased costs for healthcare, housing, welfare, and education for the families in this labor pool.
Now, as property taxes increase to meet the exploding costs in education and welfare, the lobbyists and media strike back with charges of discrimination by Californians when any of these programs falter. For instance, Latino households make up nearly 50 percent of California foreclosures and loan defaults. And on August 18, the San Francisco Chronicle outlined how government tax programs are underway to relieve these defaulting residents and allow them to stay in their homes.
According to the account, Latinos now represent 36.6 percent of California’s population. And Latinos received 29.9 percent of all mortgage loans originated in California between 2004 and 2008.
California’s Hispanic population, according to the Census Bureau, was 25.5 or 7,687,938 in 1990; in 2000 it was 32.4 percent, or 10,966,556. (These percentages—36.6, 32.4 and 25.5 do not include illegal residents.)
This loss of state’s rights has given federal courts and Washington bureaucrats veto power and dictatorial power over California's immigration policy—including border control and welfare. This has provided an unbelievable increase in welfare-prone, uneducated populations to press against county government budgets—for schools, hospitals, police forces, prisons, housing and housing developments, roads and streets, health benefits, water and utility capacity…
At the same time, California referendums and legislative attempts have been disallowed by federal judges, often with the will of the voters vetoed by a single federal judge.
Case in point: Proposition 187 was passed overwhelmingly by California voters on November 8, 1994, to deny public benefits to illegal aliens in California. The next day several lawsuits were filed in California state court by the Mexican-American Legal Defense/Education Fund (MALDEF), the League of Latin American Citizens (LULAC), the ACLU, and others.
Federal Judge Marianna Pfaelzer's court then issued a permanent injunction.
A single government official, Democrat Governor Gray Davis, refused to support the referendum on appeal, essentially killing Prop. 187; unlimited welfare transfers ensued.
Border states such as California and Arizona have been the first to struggle with the massive increase in cost associated with immigration and welfare but these problems are now spreading throughout the United States. The failure to solve the immigration problem has become one of America’s greatest calamities.
When facts like these are published, the trolls are trotted out to make the racism claims and then... nothing.
doesn't suprise me thats why those asshats Nancy Pelosi and henry waxman are running around like chickens with there head cut off trying to pass any form of legistlation so california can suck us even more dry.It seems with these 3000 page bills coming out of congress you always find some loophole subsidy to someone .shitty politicians but maybe they'll legalize marijuana.....you want to talk about solving some revenue problems, and maybe less mexicans floating dirt over here and americans buying AMERICAN if you catch my drift.
Once politicians discover they can get away with printing money once, they like it and instead of puttin the house in order they just keep printing more money.
It has happened always in history. If you allow it once, you are allowing it forever until they make the system collapse.
As TJ would say:
"Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "
"I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them. "
"It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world. "
"My reading of history convinces me that most bad government results from too much government. "
And one from Ben Franklin:
"When the people find that they can vote themselves money, that will herald the end of the republic. "
In 1941 parts of northern california attempted to break from the state and form a new state called Jefferson. the rebellion was put down by state troops and the highway patrol.
http://www.jeffersonstate.com/
My kinds tell me this was not taught in school there.
Anyone ever though about that Kurt Russell film "Out of L.A.?"
Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming!...
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