I-O-U

Let's hear it for California and the Terminator.  The State is broke.  He can't raise taxes.  If the State owes you money, you will get a "trust me" IOU.  Hmm, will we see  a developing market in CalifIOUs?  Come on look what financiers did with CDOs and CDSs.  Could they become a discounted script whose value fluctuates with the worth of State government?  Will they be traded on a commodities market or exempted like all the other worthless crap that tanked the economy.  

Got an IOU?

So how's your state doing?  IOUs coming your way.  Wow, maybe a state could pay its contractors with IOUS and they could pay their employees with IOUs who would spend them at stores accepting IOUs.  Ah, this is a backdoor to state based currency.  Cool.  Bring back the confederacy.  No, not the civil war one, the earlier one, the Confederation of States.