IBGerm

The Federal Reserve warned local governments, state contractors, and other potential recipients of the state of California issued IOU’s. Sacramento  issued IOU’s back in 1992, most banks accepted the IOU’s then.

The Fed warned to check with banks about details about the IOU’s before depositing the IOU warrants. $3.4 billion dollars in IOU’s will be handed out. If the IOUs were not handed out California would run out of cash by the end of July.

These are desperate attempts from Californian politicians that are facing a growing budget deficit. The IOUs will add to the growing debt with interest that will amount in the millions.

http://www.sco.ca.gov/5935.html

 

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