Comments on: Greek Facts

By: Jim Baird

Jim Baird — Thu, 10 Dec 2009 13:17:38 +0000

Yep, they chickened out (or, more likely, they didn’t realize the possibilities…)

By: Matt Franko

Matt Franko — Thu, 10 Dec 2009 11:44:56 +0000

I think they could do it if:
They issued the warrants exclusively in the state vendor community in exchange for state contracted goods or services.
Denominated in USD.
Did not allow the warrants to generally circulate in the public (create special state tax warrant bank accounts available only to business accounts in the state banking system).
Did not print notes (electronic only).

By: zanon

zanon — Thu, 10 Dec 2009 07:00:16 +0000

JCD: Yup. I don’t think it ever got that far, that is, I don’t think California said it would accept its IOUs in lieu of state tax obligations.

By: Will Cox

Will Cox — Thu, 10 Dec 2009 02:18:50 +0000

@Curious, yes.

http://press-pubs.uchicago.edu/founders/tocs/a1_10_1.html

No State shall … coin Money; emit Bills of Credit; [or] make any Thing but gold and silver Coin a Tender in Payment of Debts….

By: JCD

JCD — Wed, 09 Dec 2009 21:00:10 +0000

US Constitution Article 1 Section 10

“No State shall … coin Money; … make anything but gold and silver coin a Tender in Payment of Debts …”

I think that covers it. In fact I think someone could raise a constitutional challenge to California accepting it’s IOU’s in payment of taxes.

By: Curious

Curious — Wed, 09 Dec 2009 19:41:32 +0000

“Greece is not primarily an issue for the ECB. Central banks are
the lenders of last resort to banks, not to governments. Greece has a
fiscal problem, not primarily a banking problem.”

If the Greek government starts contemplating going off the Euro, then it suddenly is an ECB issue, isn’t it?

Similarly, why don’t US states in trouble, like California, consider having their own currency? Is it illegal under some federal law?