California to start issuing IOUs

California misses budget deadline

The US state of California is on the brink of issuing IOUs instead of making direct payments, after lawmakers failed to agree on ways to balance the budget.

State senators in Sacramento wrangled into the night as the start of the new fiscal year on 1 July approached.

California faces a budget shortfall of some $24.3bn (£14.5bn), but lawmakers are at odds over how to tackle it.

With tax revenues slumping amid the economic slowdown, several US states are facing a budget crunch.

California struggles to balance its budget ever year, but this year has been particularly difficult.

And the size of the Californian economy - it generates nearly 13% of US gross domestic product - means what happens there matters.Read full Story :

$5000 Gold in a couple of years says expert

$5,000 Gold Coming

James DiGeorgia, publisher of the Gold and Energy Advisor, explains why $5,000 gold prices are imminent and reveals the best ways to buy the precious metal.

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