IOU!

Well the big news today is that Wells Fargo and two other major banks are no longer going to cash the state of California's IOU's! Now what do they know that all the credit unions in the state who are still cashing the IOU's don't know? SEC states that the IOU's are like securities and are treating them as such. Why? Because some smart people are trying to buy up these securities offering holders 70-95 cents on the dollar for exchange! And I bet they get some takers. I think alot about that every time I look at a dollar....know what it is.....Federal Reserve...Note......IOU! Backed by the US government.......bet alot of people in China, Japan, and Saudi Arabia.........hope their IOU's......keep holding up in this troubled economy. Makes you think back to when in our society we used gold coin and silver certificates for trade. Wish I had some of that gold now........its worth more than these notes we are all caring around.

California IOU!

Well if the federal government can do it why can't California! What happened to the law requiring states to have a balanced budget? Other than a federal reserve note I wonder what California is issuing their citizens. Can they buy bread and milk with these IOU's, do they collect interest, will the electric company take them so they will not turn of their lights? We have started down a slippery slope here, who pays?! Where California goes so follows the nation!