It looks like California will run out of money by February 1. And unless Uncle Obama comes up with the money, the state will start to issue IOUs as payment to state workers.
Of course, California is hopelessly bankrupt. As they have opened the immigration floodgates, the tax revenue does not begin to pay for the free education and health care provided to illegal immigrants. Most of the people in California are on the state’s teat. The primary employers include the prison industry and the broken school system. And when expenses exceed tax revenue, it is not difficult to see the end result. California is no longer credit worthy to borrow more funds. In a sense, California is a microcosm of America. The key difference is that the State of California cannot print money like the Federal government.
However, this did raise an interesting question for me. If California is willing to pay in IOUs, would the IRS be willing to accept IOUs as a form of payment? As this web site is dedicated to education, I thought I would call the IRS and see if they would accept IOUs from the citizens. After all, what is good for the goose should be good for the gander.