There has been much discussion in my sewing circles about what it looks like when a government collapses. Well here we have yet another chapter. The government of California has raised the amount withheld from workers income taxes by 10%. They'll simply take it and keep it. But there hasn't been any corresponding increase in Taxes to correspond with it, so they are actually calling it a 'no interest loan'.
The Wall street journal gets right to the salient question and that is: "What happens come April if the state doesn't have enough money to pay the tax refunds it owes its citizens? Will taxpayers get IOUs the way state contractors did last year when Sacramento ran out of money?"
At least when the Fed's try something like this Texas will secede. It will be the first civil war in history that owes it's beginning to a mandatory no interest loan and poor credit.
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