California has been painted into a corner. Preface, the federal government violates the
Constitution by not using gold & silver as money.
California
has the potential for being the first to print money in
violation of the US
Constitution. That right is solely the privilege of the Dept Treasury
and its agent the USFed. The Golden State
might be the first to print phony money usable as legal tender. The move would
clearly challenge the USGovt and the WallSt syndicates that currently control the counterfeit
operation. The California NEED has become great enough, so that it could be
politically expedient to defy the WashDC federal
power center.

The only alternative in my view is for
California to suspend payment of federal income taxes, and payments to Social Security & Medicare, as it
redirects funds to Sacramento
for state usage. Each concept, tax diversion and money creation, would be
radical. Keep in mind that the USGovt is pre-occupied
by aid to the banking sector, almost totally ignoring the mainstream and the
states.

Precedent repeats. In the years 2002 and
2005, California
issued IOU coupons of some type to many state workers, state contractors, and
state suppliers. The list is many, but it includes food service companies,
health care firms, retirement firms, medical teams, construction firms,
landscapers, park service providers, and much more. Here is the key element to
the coupons. They were REDEEMABLE in certain places as legal tender, to pay for
supermarket groceries and utility bills. The coupon issuance was limited and
its redemption was limited. This time around, the Gov Schwartzeneggar
has proposed usage of warrants as IOUs that pay a 5% interest rate. The state
10-year bond is not a hot item, paying almost 50 basis points more than New York
state bond. California boasts the largest municipal bond market at $51.9
billion, all rated A+ for some odd reason, but that is only the fifth highest
among the grades.

The state legislature is at an impasse. To
begin with, they tied their own hands by passing a constitutional amendment to
render sacred the education budget, the biggest cost. It cannot be cut. The
budget has made huge cuts in spending on health care, welfare programs, and
education. The governor has proposed a tax increase, but Democrats in Sacramento
propose instead an $8 billion slash in spending. They cannot pass a
budget. The governor declared a fiscal emergency, which requires
legislators to fill the gap within 45 days. State procedural rules dictate that
no other legislature decisions can be made until the budget is resolved. Thus
the impasse and the Governatorhas
shown up with pleas on national television.

Look for additional requests from states to
the USGovt and USCongress
for state aid. To date, the harlots in WashingtonDC
only take action to aid Wall Street, the parasites that have infiltrated like a
cancer as the nation stews.