California’s Finance Director Mike Genest told lawmakers that come March, the state will issue IOU’s to vendors instead of paying them – with interest, of course.

I don’t know many privately-owned companies (except, of course, banks, insurance companies, and auto makers) that can stay afloat on promises. Promises don’t pay employees, or utilities or even taxes.

So if you happen to provide one of these services to the state of California – landscapers, carpet cleaners, construction firms, food-service companies or other state vendors – I’d start looking for a new customer base, pronto. Maybe Mexico?