California scotches paychecks in favor of IOU’s
You heard it hear first. Some California employees have been told today that their next paycheck may be an IOU. That’s right. A piece of paper that says “not convertible to money.” As fantastic as that seems, the whole surreal situation takes a turn for the weird: some banks and credit unions will accept these IOUs, taking them just as if they were paychecks and filling up hapless state employees’ bank accounts with money. Now the employee gets to use the money while the hapless credit union sits around waiting for their money. (You can bet Bank of America ain’t accepting these IOU’s!)
Ah! The fond memories this brings back! I did some consulting for the University of Puschino in Russia during the 1990′s and every university employee and professor I met had months worth of IOU’s from the government papering their office walls.
Which brings me to the sixty million dollar question: do do we get to send California IOU’s this April 14?
January 28th, 2009 at 8:44 AM
I don’t understand why the people are complaining. They elected those thieves so accept the theft. In addition, why aren’t the people demanding the various governments to relinquish the CAFR funds that they have sequestered for their personal benefit? Those funds are in the trillions of dollars. Since governments are only allowed to tax according to their “needs”, those funds, regardless of how they were approved, should never have been taken in the first place. Go get them?