http://www.nytimes.com/2009/07/03/us/03calif.html?_r=1&hp
LOS ANGELES — An ever-widening budget gap joined with intractable political paralysis to deliver California its biggest fiscal blow in decades on Thursday, when the state’s controller began printing i.o.u.’s in lieu of cash to pay taxpayers, vendors and local governments.
Apparently there's a fed law that says that states can't go bankrupt. So this should get more fun. Interesting that a state can print its own money, although probably this is technically not money.
I also read that if certain 'state' parks close, the fed gets the land back.
