Riddle Me This…

Bill would let IOUs pay for Calif. taxes, fees

quote:

SACRAMENTO, Calif. -- State vendors and contractors could use their government-issued IOUs to pay state taxes, fees and liens under a bill approved by an Assembly committee.

The Business and Professions Committee unanimously passed the bill by Assemblyman Joel Anderson during its first legislative hearing Tuesday. The bill requires the state to accept its own IOUs as payment for money owed to the government.

Anderson, a Republican from La Mesa, says the measure would help businesses and others being paid with IOUs. The state began issuing the warrants last week as lawmakers struggle to close a $26.3 billion deficit.

Ok…so California is broke, and they are now issuing I.O.U.s because they have no money to pay their debts. Let’s take this to the next level and peer into the future. What would happen if California has to start issuing I.O.U.s to people in cities that are on public assistance, and the stores and landlords decide that they will not accept that as a method of payment for rent food and goods, because there is really nothing of value to back it up. I am not trying to be the prophet of doom here, but if that did occur, this could create the potential for an outbreak of unrest that in comparison would make the Rodney King riots look like a grade school picnic, not just in Los Angeles, but in other major cities across California as well.