Comments on: California to issue IOU’s http://moslereconomics.com/2009/07/01/california-to-issue-ious/ St Croix, United States Virgin Islands Thu, 09 Feb 2012 04:52:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Winslow R. http://moslereconomics.com/2009/07/01/california-to-issue-ious/comment-page-1/#comment-8305 Winslow R. Tue, 07 Jul 2009 00:58:47 +0000 http://www.moslereconomics.com/?p=8391#comment-8305 Big Banks Don't Want California's IOUs A group of the biggest U.S. banks said they would stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap. http://online.wsj.com/article/SB124692354575702881.html?ru=yahoo Big Banks Don’t Want California’s IOUs

A group of the biggest U.S. banks said they would stop accepting California’s IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap.

http://online.wsj.com/article/SB124692354575702881.html?ru=yahoo

]]> By: Economist http://moslereconomics.com/2009/07/01/california-to-issue-ious/comment-page-1/#comment-8098 Economist Wed, 01 Jul 2009 17:51:53 +0000 http://www.moslereconomics.com/?p=8391#comment-8098 "As everyone knows, California’s state budget is in dire straits. Unlike the federal government, US state governments really do finance their spending through a combination of tax revenues and borrowing. They are users of the nation’s currency (the dollar), not issuers. The current recession (or depression) has caused their tax revenues to collapse. Their projected budget deficits cause ratings agencies to downgrade their debt—making it too expensive to borrow as this sets off a vicious cycle of further downgrades and ever rising interest rates." Read more here:http://neweconomicperspectives.blogspot.com/ “As everyone knows, California’s state budget is in dire straits. Unlike the federal government, US state governments really do finance their spending through a combination of tax revenues and borrowing. They are users of the nation’s currency (the dollar), not issuers. The current recession (or depression) has caused their tax revenues to collapse. Their projected budget deficits cause ratings agencies to downgrade their debt—making it too expensive to borrow as this sets off a vicious cycle of further downgrades and ever rising interest rates.”

Read more here:http://neweconomicperspectives.blogspot.com/

]]>