Califonia to Print Own Currency in Form of IOUs?

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StrongTurd

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Holy cow!This would have been unimaginable just 12 months ago.

January 28, 2009 "Information Clearinghouse" -- California State Controller John Chiang announced on January 26 that California’s bills exceed its tax revenues and credit line and that the state is going to print its own money known as IOUs. The template is already designed.

Instead of receiving their state tax refunds in dollars, California residents will receive IOUs. Student aid and payments to disabled and needy will also come in the form of IOUs. California is negotiating with banks to get them to accept the IOUs as deposits.

California is often identified as the world’s eighth largest economy, and it is broke.

A person might think that California’s plight would introduce some realism into Washington, DC, but it has not. President Obama is taking steps to intensify the war in Afghanistan and, perhaps, to expand it to Pakistan.
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...and...

How long before Washington will be printing money?

On January 28 Obama announced his $825 billion bailout plan. This comes on top of President Bush’s $700 billion bailout of just a few months ago.

Obama says his plan will be more transparent than Bush’s and will do more good for the economy.

As large as the bailouts are--a total of $1.5 trillion in four months--the amount is small in relation to the reported size of troubled assets that are in the tens of trillions of dollars. How do we know that by June there won’t be another bailout, say $950 billion?

Where will the money come from?

Obama’s bailout plan, added to the FY 2009 budget deficit he has inherited from Bush, opens a gaping expenditure hole of about $3 trillion.

Who is going to purchase $3 trillion of US Treasury bonds?

Not the US consumer. The consumer is out of work and out of money. Private sector credit market debt is 174% of GDP. The personal savings rate is 2 percent. Ten percent of households are in foreclosure or arrears. Household debt-service ratio is at an all-time high. Household net worth has declined at a record rate. Housing inventories are at record highs.

Not America’s foreign creditors. At best, the Chinese, Japanese, and Saudis can recycle their trade surpluses with the US into Treasury bonds, but the combined surplus does not approach the size of the US budget deficit.

Perhaps another drop in the stock market will drive Americans’ remaining wealth into “safe” US Treasury bonds.

If not, there’s only the printing press.

The printing press would turn a deflationary depression into an inflationary depression. Unemployment combined with rising prices would be a killer.

Inflation would kill the dollar as well, leaving the US unable to pay for its imports.

All the Obama regime sees is a “credit problem.” But the crisis goes far beyond banks’ bad investments. The United States is busted. Many of the state governments are busted. Homeowners are busted. Consumers are busted. Jobs are busted. Companies are busted.

And Obama thinks he has the money to fight wars in Afghanistan and Pakistan.
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I wonder what they're going to call this new currency. The Arnold, perhaps?

http://gold-report.blogspot.com/2009/02/califonia-to-print-own-currency-in-form.html
 
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W

werner

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he might not be back...

i'll be sacked

maybe there will be a total recall...

california...terminated...

he needs to find the bad guys who have the $50bn in a suitcase. I think he should chase them in a huge industrial lorry mounted crane!!!



"ARNIE..."The depression is made of polymimetic alloy..very tough"

OBAMA..."can you fix it?"

ARNIE..."with these economic weapons...I don't know" "


i'll pay you back!




come on guys, help me out here...there must be more we can think up...:)
 
B

BandwidthAddict

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Shame, I am feeling sorry for the guy.

Do you realise that California is controlled by Dems .. and Arnold tried so very hard to put in checks and balances to curb state spending to prevent this exact circumstance but he was shot down from all sides.

The Dems wanted money to bribe the voters/financial supporters, the voters/financial supports wanted the money. The cash cycle grew bigger and bigger and got worse and the greenies came in with their fake global warming scam to add the to burden (green == much, much, much more expensive).

If I were Arnold, I would have left the ship as soon as I saw the quality of the rats but he stuck it in there and tried to make something of the impossible.

Too bad that the Americans are being edumacated into giving up the old American dream and replacing it with the communist manifesto.

Yes, the Americans have become stupid, although, as South Africans, we should not be gloating.

Not when our rats are bigger, stupider and waaaaay badder than theirs. In our land, we have to hide behind electrified fences, big metal bars and, if you are really lucky, really big guns 'cos the cops sure ain't gonna help you any time soon.

Also, we are as much in the financial kuk as they are, maybe worse because our electricity is just scraping by, our mining infrastructure is taking a beating and just about every item we buy is heading for michael moore sized prices - and then there is the problems with the water that many areas are starting to experience (myself included).

Yep, nothing to gloat about at all.
 
B

BandwidthAddict

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PS .. you're little luv bug Obambo (that's Rambo with an Ob) is going all grenade on the whole world. You see, America will get it's recession but with Obambo ready to out FDR, FDR, it will take the pain but eventually the people will wake up and go "how .. eish, waz happeninz here .. yo .. josephus, like my bong costs sooo much man .. wazzupp?" and then bee-arch slap Obambo + his whole posse and bring on the J.Wayne dudes. Put some muscle and land the plane safely on the Hudson.

Us, in ze rezt of the worldz, we will suffer our azzez off and maybe not even make it. Will take us decades to recover, if we ever do.

Sux to be us :(
 
B

boramk

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z0mg things like this never happened in a recession before :O

Sigh.
 
Voicy

Voicy

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werner said:
come on guys, help me out here...there must be more we can think up...:)
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And in these troubled financial times the most prospering individual is Conman the barbarian. :D

We'll have to plant Kindergarten crops to maximize our labour production.

He'll have to freeze the accounts of the bankman & those who enjoy robin'

If california goes belly up, Arnold will be running, man.

An Eraser won't help wiping off their debt now.

With California/Hollywood in financial trouble, and considering the costs of large explosive movies, it seems we've seen the last of the action heroes.

Could this be the end of days for Arnold's Kalifornia?

It seems the financial crisis is causing quite some Collateral Damage.

So when is his financial advisor going to give us The Rundown on their plan to rectify this crisis?


awh, sometimes I kill myself :p
 
Xarog

Xarog

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BandwidthAddict said:
Shame, I am feeling sorry for the guy.

Do you realise that California is controlled by Dems .. and Arnold tried so very hard to put in checks and balances to curb state spending to prevent this exact circumstance but he was shot down from all sides.

The Dems wanted money to bribe the voters/financial supporters, the voters/financial supports wanted the money. The cash cycle grew bigger and bigger and got worse and the greenies came in with their fake global warming scam to add the to burden (green == much, much, much more expensive).

If I were Arnold, I would have left the ship as soon as I saw the quality of the rats but he stuck it in there and tried to make something of the impossible.

Too bad that the Americans are being edumacated into giving up the old American dream and replacing it with the communist manifesto.

Yes, the Americans have become stupid, although, as South Africans, we should not be gloating.

Not when our rats are bigger, stupider and waaaaay badder than theirs. In our land, we have to hide behind electrified fences, big metal bars and, if you are really lucky, really big guns 'cos the cops sure ain't gonna help you any time soon.

Also, we are as much in the financial kuk as they are, maybe worse because our electricity is just scraping by, our mining infrastructure is taking a beating and just about every item we buy is heading for michael moore sized prices - and then there is the problems with the water that many areas are starting to experience (myself included).

Yep, nothing to gloat about at all.
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Um... Before you shoot your mouth off and embarrass yourself further, please read up on the repeal of the glass-steagall act and its repercussions.

boramk said:
z0mg things like this never happened in a recession before :O

Sigh.
Click to expand...
It's not just a normal recession.
 
marine1

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Xarog said:
Um... Before you shoot your mouth off and embarrass yourself further, please read up on the repeal of the glass-steagall act and its repercussions.


It's not just a normal recession.
Click to expand...

Why not enlighten us?
 
Xarog

Xarog

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Very well. The repeal of the glass-steagall act in the USA removed financial regulations that had been put in place in the 1930s in order to prevent a repeat of the lack of oversight which was partially responsible for the great depression. Amongst other things, it prevented commercial banks from being allowed to re-invest money that customers had deposited in the bank. The only banks that could do this were investment banks.

But the upshot of it is that this act, had it not been repealed, would have prevented the current crisis from occuring because all the major banks in the United States would never have been able to pour so much money into the securities market. Had it not been repealed, banks would not have been able to take liabilities (bad loans), chop them up, lie about their worth, and then sell them off as assets.

BWA's rant about "communism" is entirely unwarranted. Had the government done its job and made sure that investors didn't defraud everyone, and actually ensured that those who did defraud people ended up in jail rather than getting million dollar golden handshakes, the world would be in a much better position than it is now.
 
B

BandwidthAddict

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Hmm..

I see your Glass-Steagall Act and raise you the Community Reinvestment Act.

That is the reason for the crisis .. that and the fact that Dems blocked all oversight on Fannie and Freddie. Basically, government intervention made this possible.
 
Xarog

Xarog

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BandwidthAddict said:
Hmm..

I see your Glass-Steagall Act and raise you the Community Reinvestment Act.
Click to expand...

wiki said:
Others however, including the economists of the Federal Reserve, dispute this contention. The Federal Reserve holds that empirical research has not validated any relationship between the CRA and the 2008 financial crisis.[56]
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So if you want me to believe that this was to blame, you're actually going to have to explain to me how it happened. And even IF banks were encouraged to make loans to poorer people, they did not have to resort to speculation on securities. (Not that it worked, anyway).

That is the reason for the crisis .. that and the fact that Dems blocked all oversight on Fannie and Freddie. Basically, government intervention made this possible.
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Um, those two are not the cause of the crisis, but by all means, I'd love for you to point out how the democrats blocked such oversight.

(And P.S. before you start with straw man arguments about how evil the dems are, you should note that I think both the Democrats and Republicans are corporate pawns, and I don't think either function with a geniune interest in governing for the masses.)
 
T

Tassidar

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As a backup to StrongTurd's post (I don't really trust blogs)

California today was branded the worst credit risk of all 50 states, after Standard & Poor’s cut its rating on the state’s debt because of the budget impasse.
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http://latimesblogs.latimes.com/money_co/2009/02/california-cred.html

With all of Schwarzenegger's Hollywood background, all his mastery of the blockbuster and of the science and art of promotion, he has not delivered to Californians any sense of the scale of the budget problem. To residents here, the state crisis appears to be dwarfed by the nationwide recession and federal bailouts. But California has an enormous looming calamity all its own
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http://www.latimes.com/news/opinion/editorials/la-ed-state16-2009jan16,0,4437024.story

CNSNews.com) – Spending by California's state government has increased 32 percent since Republican Gov. Arnold Schwarzenegger took office in 2003, and now the state is running out of money and is having difficulty borrowing it.

A group of state officials met yesterday to discuss freezing numerous state projects, and, even in the midst of a recession, the Democrat-controlled state legislature is now planning to increase the state's sales and gas taxes and add a "surcharge" to the state income tax.
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http://www.cnsnews.com/public/Content/Article.aspx?rsrcid=40977
California, the eighth largest economy in the world, is broke.

"People are going to be hurt starting today," said Hallye Jordan, speaking on behalf of the state Controller. "There's no money."

Since state legislators failed to meet an end of January deadline on an agreement to make up for California's $40 billion budget gap, residents won't be getting their state tax rebates, scholarships to Cal Grant college will go unpaid, vendors invoices will remain uncollected and county social services will cease.
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http://rawstory.com/news/2008/California_goes_broke_halts_3.5_billion_0202.html
 
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