Skip to content


July 2, 2009

California is paying bills in IOUs now. Fox News showed a woman today talking about her business supplying food to California prisons. She was paid by the State of California in an IOU, but, unfortunately for her, she can’t turn around and buy more food with those same IOUs. She can’t not provide food for the prisons because that would be a breach of contract and it could cause her to lose her business.

You can read more about California’s IOU program, as well as about how other states are having similar problems (including NY, PA and AZ) on Yahoo!

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: