I caught bits of pieces of this idea in a linkedin thread and did some research and evidently it’s true.
California because it is so in the red the state of California is issuing IOU’s.
How are they going to reconcile this with ?
Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility.
I would say an IOU is a “Bill of Credit” by anyone’s definition.
I guess it’s true what I hear….”The problem with socialism is that eventually you run out other people’s money”
Editors note: bill of credit defined as:
BILL OF CREDIT – It is provided by the Constitution of the United States, Art. I, Sec. X, that no state shall ’emit bills of credit, or make anything but gold and silver coin a tender in payment or debts.’ Such bills of credit are declared to mean promissory notes or bills issued exclusively on the credit of the state, and for the payment of which the faith of the state only is pledged. The prohibition, therefore, does not apply to the notes of a state bank drawn on the credit of a particular fund set apart for the purpose. Bills of credit may be defined to be paper issued and intended to circulate through the community for its ordinary purposes as money redeemable at a future day.