JP Morgan Bails Out California

peaceandlove · 08-20-2009, 08:28 AM

From G. Edward Griffin's website: http://www.realityzone.com/currentperiod.html
JP Morgan bank bails out California with a loan to pay off its IOUs. But the bank, itself, was bailed out by Congress. If this loan goes sour, taxpayers again will be forced to cover the loss. There is no free market left in banking. It's a command economy by government decree with all losses paid by taxpayers.
Business Insider 2009 Aug 19 (Cached)

JP Morgan Bails Out California

John Carney
Aug. 19, 2009
The Business Insider

Remember when the US government had to bail out investment banks? Now a bank is bailing out the state of California.

California had been covering its budget shortfalls by issuing IOUs to pay for services, making it the first state to issue its own fiat currency since the Civil War. The program ran into trouble when banks announced they wouldn't keep cashing the IOUs.

Eventually California reached a budget deal and kicked the can down the road, but there's still the issue of the outstanding IOUs.

Yesterday JP Morgan agreed to lend California $1.5 billion to fund the program to redeem the IOUs. State controller John Chiang has announced the redemptions will begin on September 4th.

Continues: http://www.businessinsider.com/jp-mo...ifornia-2009-8

08-20-2009, 08:28 AM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	JP Morgan Bails Out California From G. Edward Griffin's website: http://www.realityzone.com/currentperiod.html JP Morgan bank bails out California with a loan to pay off its IOUs. But the bank, itself, was bailed out by Congress. If this loan goes sour, taxpayers again will be forced to cover the loss. There is no free market left in banking. It's a command economy by government decree with all losses paid by taxpayers. Business Insider 2009 Aug 19 (Cached) JP Morgan Bails Out California John Carney Aug. 19, 2009 The Business Insider Remember when the US government had to bail out investment banks? Now a bank is bailing out the state of California. California had been covering its budget shortfalls by issuing IOUs to pay for services, making it the first state to issue its own fiat currency since the Civil War. The program ran into trouble when banks announced they wouldn't keep cashing the IOUs. Eventually California reached a budget deal and kicked the can down the road, but there's still the issue of the outstanding IOUs. Yesterday JP Morgan agreed to lend California $1.5 billion to fund the program to redeem the IOUs. State controller John Chiang has announced the redemptions will begin on September 4th. Continues: http://www.businessinsider.com/jp-mo...ifornia-2009-8 Last edited by peaceandlove; 08-20-2009 at 08:43 AM.