Posted on 07/02/2009 6:40:35 PM PDT by Kozman
...These warrants will not be subject to the normal, federal check-hold limits and therefore could be subject to extended holds....The State of California will likely return unpaid any registered warrants that it receives before the payment date. Therefore, depositors of these warrants may be subject to returned-deposit fees if their banks attempt to collect these warrants before they are payable...
(Excerpt) Read more at economicpolicyjournal.com ...
Shut yo mouf Fed. We’re Kaleefornia and we can do what we want.
The Democrats are out of control and know no bounds to their idiocy.
Coming to a state near you in the VERY near future. Wisconsin is essentially BROKE. Passed a 62 Billion dollar (spending) budget this week, and we’re already 6 Billion in the hole to start with.
No good can come of this...
Thanks, 0bama! :)
hear that some local banks are accepting this slimey paper for deposit....anyone heard about this?
There’s something rather ironic about the Fed warning about worthless pieces of paper.
Investment tip to freepers: Buy futures in the wheelbarrow market!
parsy, who says keep it quiet
LOL.
But I think you meant "Kaleeforn-eye-ay."
Californians voted overwhelmingly for Hussein.
Suckers.
HA!!!
They are NO DIFFERENT than what you issue, the Federal Reserve Note.
Hypocritical thieving PRIVATE ENTERPRISE jackasses.
I forget who, maybe it was Dick Morris or Rush, who said that the next bailout would be California. Frankly I couldn’t see it happening. It would enrage congress and separate Pelosi from her party.
However I now see the slick trick. BOA and others will accept the IOIs, California will then default on some/all of them and then “to save the system” the Fed will cover the bank losses.
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.
If only they had made the national government obey the same standard.
Just so. They have totally left the track and rampaged through the weeds now, headed they know not where. The once great engines of limited government in the United States of America are essentially defunct and stalled out in the hog wallows of statist corruption.
These IOU's aren't legal tender, that's the whole point of issuing them.
What would be unconstitutional would be CA cutting new banknotes/paper money (ala Confederate notes) out of thin air. That would be intruding on the fedgov's monopoly to create paper money (which the fedgov delegated to a private company, the Federal Reserve).
Talk about the collusion with supposedly private corporations and the government.
What is happening here is essentially monetizing the debt at the state level.
At the federal level, the politicians tell the Treasury Dept., “Hey, we want several hundred million for “projects” [i.e., to buy votes], can you give it to us?” The Treasury says, “Sure. We'll write on this cocktail napkin an IOU to the Federal Reserve.” They give that IOU to the Federal Reserve who says, “OK, we'll use your ability to tax the citizens of the US as collateral to approve this ‘LOAN.’” The treasury takes the approval as backing, they print the money, give it to the congress, who spends it, THROUGH THE BANKS.
Fast forward and demote it one political level.
The governor says, “We're broke but we owe money. So, I'll write an IOU to those people. Hey, Bank of America, will trade these in for cash if people bring them to you?” BoA says, “Sure, if we can charge the State of California a fee/interest percentage on what we convert.”
So here you have a private bank taking the IOU from government and turning them into a piece of paper we call money that has no real backing.
Folks, this is a metastasizing of the cancer that is central banking down to the state level.
What this does is approve the creation of fiat currency at the state level in addition to the federal level.
WHAT THIS HORRENDOUS AND UNCONSTITUTIONAL (because ONLY the federal government is constitutionally authorized to “coin money”) MEANS IS THAT THE US DOLLAR WILL DEVALUE AT AN EXPONENTIALLY INCREASING RATE.
Stock up on the essentials (6-months supply) if this continues to the other states that are also insolvent.
Become a prepper.
Been there, done that.
5.56mm
I’m not good with links but can someone please post a link to tell the fed to STFU?
I hope you’re right. I don’t want to be tagged to subsidize a whole bunch of overpaid state and local employees and illegal aliens. People need to understand that this jeopardizes legitimate spending (defense, courts, prisons, public health, etc.) on the federal level.
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