Saturday, July 11, 2009
Proposed California bill would allow IOUs to be used to pay state taxes
If this bill passes it would, in the words of Warren Mosler, "be profound." (Read here.)
Indeed, it would allow California to deficit spend just like the Federal Gov't and with the IOU's acceptable as payment of state taxes, it instantly imparts value to them.
It will also end, almost immediately, California's budget problems.
Yes, profound! And the first step toward secession??
When other states see how wonderfully this works, they will do it too!
Interesting...Europe went to a single currency...America might now be going to 50 differetn currencies!! All because our policy makers in the Federal Government don't understand our monetary system!!