Are state issued IOUs "currency?"

[MsDoodahs]

If CA/other states issue IOUs, isn't that printing their own "currency?"

Handing out IOUs won't cut it unless they force everyone to accept the IOUs in lieu of FRNs - I guess CA can do that - but then wouldn't it be closer to printing their own currency?

 

[TonySutton]

If I was in CA and received an IOU instead of a check, I would file a lawsuit for breach of contract. If the banks take the IOUs like they did last time, I suggest they might be violating the US Constitution.

 

[angelatc]

If CA/other states issue IOUs, isn't that printing their own "currency?"

Handing out IOUs won't cut it unless they force everyone to accept the IOUs in lieu of FRNs - I guess CA can do that - but then wouldn't it be closer to printing their own currency?

I had not considered it, but I thought that the states were only allowed to use gold or silver as alternative currency.

It would be wonderful to see California get sued for not issuing gold or silver.

 

[not.your.average.joe]

YouTube - CA 2009 Tax Return IOUs

 

[not.your.average.joe]

I had not considered it, but I thought that the states were only allowed to use gold or silver as alternative currency.

It would be wonderful to see California get sued for not issuing gold or silver.

They would probably get sued if they tried to use gold & silver!!!

 

[Minarchy4Sale]

they are likely legally tradeable promissory notes with a due date.

 

[HOLLYWOOD]

Hah HAH... Oh the Irony of using the audio clip from Dumb and Dumber.

Classic!

Someone is funneling money to California. I don't know if it's the FED, TREASURY, Obama's Masters, etc... someone has a deal going. Always look the other way with government announcement, there's a multi-billion dollar loan deal happening somewhere.

YouTube - CA 2009 Tax Return IOUs

 

[Volitzer]

They should just issue State Treasury Notes this way the FED-RES would be out of state finance completely.

 

[Sarge]

I was reading that 53 M of those IOU's that you can't cash until Oct are income tax refunds.

Makes a case not to overpay your taxes.

 

[acptulsa]

MsD, I think they would be considered 'bonds', even though they don't (but should) pay interest.