Controller: IOUs show Calif. fiscal mismanagement

Controller: IOUs show Calif. fiscal mismanagement

news.yahoo.com

California Controller John Chiang (CHUNG') says thousands of Californians will be hurt and it will cost millions if the state hands out IOUs instead of payments.
Without a new budget, Chiang said Friday that he will have to start issuing IOUs. Students expecting college grants and low-income seniors would not get paid, along with vendors providing services to the state.

Chiang said taxpayers will also owe interest on IOUs.

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Okay, so not only are those in charge in California issuing IOUs instead of the money owed, but the taxpayers will owe interest on these IOUs which are being issued. Students are not going to be able to pay their tuition.

This coupled with the required voluntary servitude as a stipulation for receiving financial aid is going to hurt students very badly. When Obama's plan goes into effect, things will get even worse for students.

Plus those who are owed money will have other bills they will not be able to pay either. Bad for the economy.

news.yahoo.com
(visit the link for the full news article)

reply to post by Jessicamsa


So wait, they are going to owe interest to who? I don't get that part.

The state is going to deny these people their entitlements, and make them pay for it? California is so screwed it isn't even funny.

I hope that isn't a new government preview or 'precedent setting event' so they will be able to use them all over the US. And then hold the citizens liable for the interest. You know, I don't ever once recall me authorizing them to spend ANY of my money. This country is in a world of hurt and I seriously believe we are just seeing the sprouts of the underlying madness this government has wrought already!

reply to post by spirit_horse


Okay about the interest part, they are going to give out IOU's then devalue the IOU's because the debt will accrue interest?

Yea, things are going to get ugly.