another constitutional violation in CA, we are sinking in more debt

Hi,

If you know of someone in California who wants a little fame, here is the makings of a good case.

"Callifornia State Controller John Chiang announced on January 26 that California's bills exceed its tax revenues and credit line and that the state is going to print its own money known as IOUs. The template is already designed. Instead of receiving their state tax refunds in dollars, California residents will receive IOUs. Student aid and payments to disabled and needy will also come in the form of IOUs. California is negotiating with banks to get them to accept the IOUs as deposits."

Now what is wrong with this?

How about the US Constitution, Article 1, Section 10:
No State shall...emit Bills of Credit, make any Thing but gold and silver Coin a Tender in Payment of Debts....

"A bill of credit is some sort of paper medium by which value is exchanged between the government and individuals. An interest-bearing certificate that was issued by Missouri, and usable in the payment of taxes, was thus ruled to be an unconstitutional bill of credit."

"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."

Looks to me that there is a serious Constitutional question. But as George Bush noted, the Constitution is just a piece of paper; I suppose anything goes. When was the last time you were in a state where you used gold or silver coin as legal tender? A new President who was born to a non US citizen father, hence making him not a "natural born citizen", but the Supreme Court refuses to hear any case challenging his Constitutional qualification. So California is about to issue bills of credit, and nobody seems to notice that this is a blatant violation of the US Constitution.

Regards,
Neil Hauschild