Someday, will state I.O.U.s become a second currency for Americans? (Remember, I.O.U.’s from the federal government are our currency now.) Food for thought, as California is stopping $3.7 billion of payments next month because it is stone- BROKE. California’s controller says he will begin a 30-day delay on tax refunds and other payments starting Feb. 1 because the state is running out of money. With a $41.6 billion shortfall over the next year-and-a-half, the state is about to start having to issue I.O.U. s. “Other payments” include unemployment and welfare checks. This is not going to go down well.

Why are they running out of money? Entitlement programs and Sanctuary Cities that keep illegal aliens coming back for more? One of the least business-friendly states in the union? State Controller John Chiang said today that he must delay $3.7 billion in payments next month, because lawmakers have failed to address California’s growing deficit. Chiang says his office will continue education and debt payments but will defer money for tax refunds, student aid, social services and mental health programs. Apparently, the California taxpayer is not an important creditor- as they aren’t in the “must-pay” debt category.

California’s been on life support for awhile, but the economic downslide has dealt a potentially mortal blow to the state’s house of cards. A severe drop in revenue has left it’s main bank account depleted. The state had been relying on borrowing from special funds and Wall Street investors; those options are no longer available. Nope, nobody wants to buy bonds from California when they’re riskier than going to Vegas. It seems California has maxed out it’s credit cards too!

It sucks to be broke, so California should be ecstatic over the new stimulus bill cooked up by the House Democrats; the one that doesn’t have as much as a Republican fingerprint on it. Not even a partial. Lots of money for the states, though! If the results of the federal government’s recent blast-spending are any kind of model, however, I wouldn’t be waiting by the mailbox for a tax refund from the state of California. Look for a lot of new roads, community-college-trained medical assistants, and lightbulbs, though.

So, don’t throw the I.O.U.s away yet, until you’re SURE they’re really worthless. Probably won’t take too long. WHATEVER you do, don’t go out and buy something thinking your I.O.U. will cover it! It will not! Just look at it like you do a cellphone/hdtv/shamwow rebate check. You fill the out the forms perfectly, submit them quickly and completely…and the check will never, ever, ever show up in your mailbox. It’ll be kinda like that, Cali.

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