The State of California is on the verge of complete financial collapse. Their government is issuing IOUs.

Of course the IOUs are only going to the little people, the VIP’s are still getting cash… for now.

Today, big banks announced that they won’t honor the IOUs beyond Friday.

“A group of the biggest U.S. banks said they would stop accepting California’s IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap.”

“After state leaders failed to agree on budget solutions last week, California began issuing IOUs — or “individual registered warrants” — to hundreds of thousands of creditors. State Controller John Chiang said that without IOUs, California would run out of cash by July’s end.”

How is California spending what’s left at the the bottom of the penny jar?

“The Los Angeles mayor has asked fans of Michael Jackson for help in covering the estimated $4million cost of today’s funeral and memorial service.”

They’re so screwed, they’re actually asking Jackson fans to donate to the City of Los Angeles.

“We are asking Michael Jackson fans to help be a part of this event,” Matt Szabo, press secretary to Mayor Antonio Villaraigosa, told CNN earlier today.”

“We are asking them to contribute online and actually literally support this great memorial that you see behind us,” he continued.”

How does this make sense? Is the American media talking about California’s impending doom?

Nope. It’s all Jacko, all the time.