Thursday, Jul 02, 2009
US Recession - Reality for the Public Sector
SKY: Arnie Owes You: California Halts Worker Pay
Californian workers will receive "IOU" notes promising payments as governor Arnold Schwarzenegger declares a "fiscal emergency". "The state's lawmakers are at odds over how to plug the budget gap".
Posted by alan @ 07:46 AM (916 views) Add Comment
10 Comments
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1. devo said...
A bailout is inevitable, then, once a precedent is set for California, watch a disorderly queue form!
2. devo said...
See also...
State's budget gap deepens $2 billion overnight
San Francisco Chronicle
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/07/01/MNV118HCO8.DTL
3. devo said...
Mr Schwarzenegger said that despite the crisis, he was proud of California, saying 30 more states were also yet to agree a budget.
For many states, 30 June heralded the end of the fiscal year, but several were facing crucial decisions to balance the books as the deadline neared.
Many of the states are legally required to have a balanced budget, which can mean cutting services and firing workers.
http://news.bbc.co.uk/1/hi/world/americas/8129840.stm
4. Carrera5 said...
Coming to a UK near you soon !!
5. icarus said...
And US-based Niall Ferguson goes on about the UK's problems, saying the US won't default because it's got the reserve currency.
6. stillthinking said...
Arnie has excelled himself.
IOU notes from the terminator are more than suspiciously similar to issuing a new currency as legal tender, something that must surely be illegal in the USA. Soon we will have a sterling ArnieIOU exchange rate !
7. icarus said...
California Treasury bonds. Are they rated by Moodys? Is there a secondary market to establish price and yields? Will the Chinese buy them?
8. icarus said...
The answer to the last question is NO WAY.
9. debtfree said...
California is one of 5 states in deep doo doo.
The last time Indiana missed its deadline for passing a budget and had to shut down the government was during the Civil War.
Arizona, California, Indiana, Mississippi and Pennsylvania are all in trouble. Of course, everything is alright in USA though, yes really.
http://www.latimes.com/news/nationworld/nation/la-na-shutdown30-2009jun30,0,1912245.story
10. andrew said...
It is different this time, there really is no stopping the public payroll and here is the result, never thought it could / would happen.
As above, possibly coming to the UK soon.