BANKS TO STOP TAKING CA'S IOU'S AFTER FRIDAY

July 7, 2009

This is a surprise! The major banks (Bank of America, Chase, Citibank, etc.) are refusing to potentially take a hit to their bottom line by honoring CA's IOU's after this Friday. This action speaks volumes about the economic outlook for the tax-loving State of California.

The State of California has seen "Tea Party" rallies to protest the huge increases in state taxes and the total lack of fiscal responsibility exhibited by elected state officials. Although largely ignored by the mainstream media, these protests still show a growing dissatisfaction with the inept handling of the State's finances.

It's often said that Washington looks to California for the future. Let's hope to God that doesn't happen! Can you imagine the chaos that would ensue if the Federal government had to start issuing IOUs? This seemingly unimaginable event would have already happened if not for the Feds being able to print money, with apparently no constraints and with taxpayers having no idea of what is backing this explosion of paper money.

But the big banks, God love em! These are the only business enterprise in America that will NEVER have to worry. They have too many buddies at the Federal Reserve, in Congress and sprinkled throughout the administration. Their lobbyists must be the most popular guys and gals within the Beltway! The entire country will tank before they will feel the pain the rest of us have to experience. At least that's their historical philosophy. However, if the country is to survive, these huge financial institutions must take a hit commensurate with that we're all feeling. After all, had they not been so greedy initially, we wouldn't be facing financial catastrophe.