IOUs Become Main Method of Payment for California

Mismanagement and giving into the unions have finally landed California right where they needed to be…in financial peril. The fiscal situation has been driven to the point, where the state has been issuing IOUs as a form of payment because they are unable to pay their bills.

According to NBC Los Angeles, John Chiang, California’s Controller will be issuing IOUs to cover payments to schools. With California on the verge of bankruptcy due to the Governor and the Democratic legislature being unable to come to a consensus over the budget, this might be the sole form of payment for a while.

Meanwhile, California’s economic woes continue on, along with our federal government’s decision to spend like there’s no tomorrow. Today, The Wall Street Journal released an article detailing the federal government spending, which totals $165.04 Billion. It’s only a matter of time before all of the cards collapse and the U.S. is stuck issuing IOUs as forms of payment. Unfortunately, taxpayers will be the ones holding the bill.