California IOUs Rejected by Banks

California has about two more days before economic reality hits. On July 10 some of the largest banks in the nation will no longer accept the state issued IOUs as deposits.

Which means if you are one of those poor saps who gets stiffed with a "Golden State Ticket," good luck.

I'm not trying to be overly hard-hearted here, but the people of California are reaping the harvest that they have sown by electing these pandering, appeasing, entitlement-creating idiots to public office. That includes a great number of men and women who call themselves Democrats. It also includes a substantial number of men and women who call themselves Republicans.

Don't blame the banks. They aren't sure whether they are going to be repaid by the Schwarzenegger Democracy (I hesitate to call it a Republic). California expects them to hand out cash for slips of paper that may well be worthless. I wouldn't do it; would you?

Blame instead the politicians who won't cut entitlement spending, or special projects that are not essential government services, even when the voters declare in no uncertain terms that hiking taxes above the current near confiscatory levels is out of the question.

The governator tries to get legislative leaders to meet with him on whittling away the remaining $23 billion deficit, and instead they want to talk about blueberries, pomegranates and the definition of honey. He complains of their unwillingness to discuss the real issues, and they declare him politically ignorant of legislative science.

And then they serve up a real zinger, the one that hurts:

"The governor's turned from an action hero into just another politician," said Sen. Dean Florez, D-Fresno.

Ooh! That really hurts.

Democrats in California are still harboring hopes that the federal government will bail them out of their pit, as very soon the wails and lamentations of the IOU-bearing but cashless entitlees are heard via the mainstream media throughout the land.

And their probably right. But they shouldn't be. It means you and I will be riding to California's rescue, and no one will ask us whether we want it that way.

Most of these "you-knighted" states require themselves, through constitutional limits, to spend no more than they receive. When collections are down, spending must follow. It's a sensible limit that dampens the spending enthusiasm of even the more wild-eyed progressives.