The State is issuing IOUs, and, generating rules for transferring their ownership. Credit unions seem to be cashing the IOUs at face value; check cashing outlets are cashing them at face value, minus fees; and, B of A, Wells, and Chase will cash them at face value, until Friday, 07.10.2009, and possibly accept them as collateral for loans thereafter. CA's IOUs are already being traded speculatively, on E-Bay and craigslist.
The first CA IOUs were no doubt printed last week, but there's no news of a bust yet, and no one seems to know whether investigators would be federal or state employees, since counterfeiting is generally a federal crime, but, CA IOUs are the California's funny money. Any State investigators will, unless and until the budget deadlock breaks, be getting paid in CA IOUs.
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