California is issuing funny money to pay their bills. The Banks stopped cashing these warrants Friday. They are not cash and there is a part of the US Constitution that says:
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; . . . ..Of course the fly-boys running the government are stating that these certificates are securities and need to be treated as such. They are going to sell you a toll booth to go with the bridge you just bought. Most vendors servicing the State will stop delivering product for good reason. Instead of taking a roll home every week, State workers will now be packing toilet paper in their lunch box for personal use.
In theory, a warrant has to be discounted to raise cash today. The trouble is, it might be 50 cents on the dollar. Many people in this State live from paycheck to paycheck. It kind of makes you wonder what happens to them.
Someone sooner or later will latch on to the idea of buying these warrants at half price and paying their property taxes with them. The last thing the state needs is this stuff coming back at them. It’s like a snake eating its own tail.
Then there is the rumor that the Governator is going to sell Boardwalk and Park Place . . . . and as we pass GO, Obama is going to give us a $200 stimulus package . . . . . .It kind of has the feel of a Parker Brother's board game.