In California, even the IOUs are owed

California just keeps getting picked upon, but its just too fat a target to avoid.

The New York Times is now reporting that even folks who were to be given IOUs aren't getting them.

"....across California on Tuesday, many vendors who had been told they would receive the i.o.u.’s instead of actual money said they had not yet received them. And if they do not arrive soon, they may be hard to turn into cash."

The IOUs, which do not have the full faith and credit of the state behind them, are supposedly being handed out to vendors and others because California is too broke to pay cash. Apparently they are only promises of promises to pay.

Meanwhile Drudge reports that the California legislature has gotten into a food fight....literally. The Democrats, who control the lege, are trying to pass some food regulations rather than deal with the budget. The budget, of course, is at an impass because one side wants to cut spending, and the other wants to raise taxes.

With California's credit ratings headed into the tank, one might think that they would be able to cut expenditures and balance the budget, particularly after voters in May soundly rejected new taxes to do so. But the Democrats, controlled by the large public employee unions, refuse to budge.

Meanwhile, as the Times points out:

"People expecting money from the state who do not get a warrant by Friday have three choices. They can try to find an alternative bank or credit union willing to deal with someone who is not a customer, they can hold the warrant until it matures and collect the interest, or they can try their luck in secondary markets, where some people are already seeking to buy i.o.u.’s at a discount."

As Obama's favorite minister would say; "The chickens, they are a comin' home to roost."