California begins issuing IOUs … to the peons

HOTAIR.COM ^ | 7/2/2009 | Ed Morrissey

[optiguy]

Coming soon nationwide.

[Man50D]

It will be interesting to see if taxpayers issue IOU’s to the state.

[paul51]

Governor Arnold Schwarzenegger insisted that the state was “responsible” enough for banks to accept the IOUs at face value

Sure. Oh yeah. I'm certain they have a lot of faith in the state

[Mr Ramsbotham]

I wonder if the creditors could find anyone willing to buy up the notes for, say, 50 cents on the dollar.

[EagleUSA]

Those IOUs are not worth toilet paper....where are the state-destroying liberals going to get the money?? They are driving businesses and top-earning individuals out of the state faster than they know. What goes around, comes around.

[Cicero]

Worth visiting the link to see who gets paid in cash and who gets the IOUs.

[ProtectOurFreedom]

Damned straight they are (at least the smart ones). Taxpayer IOUs are in the form of increased number of withholding allowances. Why take the chance they won’t be able to pay you your refund next January? My wife and I are adjusting allowances right now so we pay the state.

[ml/nj]

No State shall emit bills of credit ... nor make any Thing other that gold and silver Coin a Tender in Payment of Debts.

It's time to bring charges against the b*stards behind this for violating the oath they took to uphold the United States Constitution.

ML/NJ

[ProtectOurFreedom]

Selling your receivables (”factoring”) is very common. Don’t know if you can do it with a government warrant, though.

[umgud]

Coming soon nationwide.

Nope, the feds can just print more money. The states can't.

[Red_Devil 232]

Meanwhile the State’s Employees will be paid with real money - no IOUs for them!

[Names Ash Housewares]

People always have to learn the hard way.
Years of warnings mean nothing.
Let the pain begin.

[annalex]

People who get California IOUs	People California pays in cash
Grants to aged, blind or disabled persons	University of California
People needing temporary assistance for basic family needs	Public Employees’ Retirement System
People in drug prevention, treatment, and recovery services	Legislators, legislative employees, and appointees
Persons with developmental disablities	Judges
People in mental health treatment	Department of Corrections
Small Business Vendors	Health Care Services payments to Institutional Providers

Figure it out yet?  The people who most need cash get IOUs, while the people who could stand to operate on credit get cash.  I guess this is also “responsible”.

[Technogeeb]

No State shall emit bills of credit ... nor make any Thing other that gold and silver Coin a Tender in Payment of Debts.

That old document? Nobody pays attention to it anymore. It's obviously obsolete; it doesn't even allow government to perform vital roles like controlling health care and regulating carbon dioxide.

[Pining_4_TX]

Better hurry before they pass a law that says you can’t.

[optiguy]

Good point. I sometimes forget to think through all of these new scenarios we now have to deal with.

[ProtectOurFreedom]

Read "Constitutional Law" by James Hall, Chapter XV "Money & Banking" Section 307 "Bills of Credit." In 1915, it was clearly legal for states to issue such warrants without violating the U.S. Constitution.

[ProtectOurFreedom]

Excellent point. I wouldn’t put it past them to even try to pass a law to retroactively revert you to prior withholding levels if you made an adjustment after 1/1/09.

[NathanR]

Partially right.

Those paid with registered warrants:
http://www.sco.ca.gov/5919.html

Those not:
http://www.sco.ca.gov/5917.html

Note: regular paychecks are also called warrants also.