California forces state agencies to accept IOU's

http://www.bloomberg.com/news/2010-08-23/california-measure-would-force-state-agencies-to-take-ious-for-payments.html

The Chinese dumping US bonds

The Chinese are finally doing what they've threatened to do for a while: not only are they not buying US corporate and Treasury bonds, they are now net sellers.

http://www.zerohedge.com/article/china-dumping-begins-reserve-managers-notified-any-non-usg-guaranteed-securities-must-be-div

The China Securities Journal, a government-backed daily, accused the U.S. in a tough-worded front page editorial of playing the "exchange rate card."

It said that, just as China didn't interfere with Federal Reserve purchases of U.S. Treasuries, "the U.S. has no right to interfere in China's exchange rate policy."

"Whether or not to appreciate is our own business," the newspaper said.

"Whether it will appreciate, when and by how much is an integral part of China's monetary policy."