Arnold Schwarzenegger Declares “fiscal Emergency� In California

[copydude]

For contractors it would probably be more tax efficient for the state's outstanding bills to remain officially unpaid on long settlement terms rather than accept these IOU's, what good are they if they're not accepted by employees, the IRS and other companies?

When Russia was bust, it paid State workers in chicken livers and even manure.

[Guest sillybear2]

When Russia was bust, it paid State workers in chicken livers and even manure.

Pepsi also entered into a countertrade arrangement with the Russians, they used to receive vodka to sell into the US markets in exchange for the Evil Sugar Water.

[right_freds_dead]

But, it is an emergency.

And in some ways you can respect Arnie. He is one of the few politicians who isn't in denial. And he plans to begin cuts by shutting down Government offices.

Quote

“Every day we wait, the problem is getting bigger, the deficit is getting bigger, because right now we are spending money that we don’t have,†Schwarzenegger told reporters at a Sacramento news conference.

Can you imagine Gordon owning up to that?

good post. as a governor he has not been so bad, its just the population dont want to know the truth.

i feel sorry for him and he certainly should NOT be getting the blame.

btw: id like to add an arnie joke.

"my brain is a CPU net nuro computer. the more input i place into it the more i leeeer-aarn."

[Guest sillybear2]

good post. as a governor he has not been so bad, its just the population dont want to know the truth.

The truth? They can’t handle the truth!

I'll get my coat.

[copydude]

as a governor he has not been so bad, its just the population dont want to know the truth.

i feel sorry for him and he certainly should NOT be getting the blame.

Umm . . . a Governor of bankrupt state should take the fall, I'd tend to say.

But much of this has to do with deadlock politics. Repugs won't raise taxes, Dems won't allow cuts in benefits.

The funny part is that even if you did both, California would still be bust for the forseeable future.

I'm very fascinated to see how this plays out because it is a microcosm of state failure everywhere. The difference is that Arnie has called a bust, a bust.

If this IOU scheme works, how many other bust states (even nations) will be queuing up to follow suit? As I posted earlier, that was the only way out in the Russian bust. Some people got paid in kind. Some people - loads of miners - got nothing at all. Russians didn't pussy around with IOUs.

So, interesting to see if this solution, which isn't one, works as a cosmetic solution.