Comments on: Get ready for the IOU market Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: Folklight Tue, 07 Jul 2009 00:04:46 +0000 California’s Nightmare Will Kill Obamanomics

The “script” that is playing out in California is merely a shadow of DC – “District of Corruptiom” where we have two differnt political parties headed in the same direction.

They only differ in speed; as they both offer expensive government programs for every perceived need voters may have.

After years of playing this charade called “pass the buck” power thirsty politican, instead of paying for what is truly needed, now reap the whirlwind. California politicians have wallowed in an orgy of spending but they are a poor imitation of the porkers in Washington. Yes California’s deficit this year is over of $26 billion and IOU’s are being printed.

This fact pales in comparison however to the U.S. federal deficit which will be nearly 70 times larger. What makes anyone think we can issue printed IOU’s in promise of payment for more “Dirty Paper” !?!?! Tis an Obamanightmare…

By: B.Free Mon, 06 Jul 2009 13:57:18 +0000 one would hope that all state politicians, administrators and appointees would be getting the IOUs instead of checks for their pay.

During the Great Depression Cities issued their own script which was legal tender withing their area. I think this would be a better solution than IOUs.

By: Dan Sat, 04 Jul 2009 09:30:03 +0000 And by the way, if there is a way to dissolve the California Legislature, this is the time to do it. Dissolve, Suspend it or Freeze it.

By: Dan Sat, 04 Jul 2009 09:15:12 +0000 Chocolate chip cookies in exchange for sewing the hems in a couple of pieces of clothing!

A whole chicken in exchange of some pork chops!

By: Don Fri, 03 Jul 2009 16:24:03 +0000 California has to borrow money and pay in cash – not pay in debt in lieu of cash. I just don’t recognize the status of this paper. It should take precedence over any other debt – since it is in lieu of cash. Plus the credit rating of the state has to reflect the issuance of a new type of debt that places existing debt holders at a disadvantage. It’s not right. The correct action is to lay off staff, reduce service and cancel state programs. Or the state can just borrow money at higher rates to reflect the increased risk of delayed payment.

By: Anubis Fri, 03 Jul 2009 13:11:28 +0000 I guess I should be heartened to know some people still have a sense of humor as we watch all our little “Neros” fiddle around as the Capitols burn, albeit figuratively.

By: gd Fri, 03 Jul 2009 06:33:14 +0000 Let’s start a internet auction for the califorian state!
I’ll start at 2 dollars ( whatever currency you what) I’m prepared to go to 4 dollars, but after that I’m out!

By: Dan Fri, 03 Jul 2009 01:57:45 +0000 In reply to:

July 2nd, 2009 4:41 pm GMT – Posted by James Reginald Harris, Jr
Wasnt’ there a little law about no state shall print its own money?

– Well, yes there is, but since all derivatives are just glamorized IOU’s and banks and all other money managing institutions under the sun have glorified them wrapping them in paper worth more than the signatures in the contracts, I guess a free-for-all has begun.

If the crisis was bad before because of non-existant money that *exists* in the form of IOU’s (or their interests and handling fees, transfer fees and whatnots)… that even the initial fraction cannot be repaid by the original borrowers…wait till Californias IOU’s get those same fees on top of fees for an IOU and they become not worth $0 but instead $0+($-n) (or $0x($-n), which is still $0 but a little more complicated since the value of -n is what matters, right…?)

Of course, I haven’t studied Math in many years, never been too good at it, but someone who is a little more knowlegeable please present the current formula for California IOU’s.
(that’ll be fun)

I’m stamping my own signet on cookie dough and will start trading cookies in exchange for other goods.

By: James Reginald Harris, Jr Thu, 02 Jul 2009 23:21:08 +0000 Well after a slew of emails, I feel confident the US Treasury is aware of the matter in California. You can remind them where the State of California is at

Thankfully President Barack Obama has stated the Michael Jackson will go down in History as a Great Entertainer and the question of who is better between two basketball players will be answered shortly.

Honestly, I don’t know why Foxnews is so unfavorable to the President, he’s giving them a lot of the type of news they should love as the information we citizens need to make certain our government is running itself in a lawful manner.

I’ll bet a $1.00 IOU that the newsmedia does not cover the legality of the warrants. So funny, no one issued a warrant for madoff in 10 years but when a State needs to bend the law, they get them fed-eral express.

I’m certain a better way will be found over the holiday weekend and I honestly hope I’ve totally ruined 100 bankers fourth of july holiday.

Maybe reading some basic law under the supervission of US Treasury Agents would be a better way for California’s Advisors to spend their weekend.

Maybe they can start with MIRANDA.

By: James Reginald Harris, Jr Thu, 02 Jul 2009 21:41:16 +0000 Wasnt’ there a little law about no state shall print its own money?