California Issuing I.O.U.'s

I can't help but think California just might be giving the rest of the states a foretaste of what may be on the horizon for many of the others.

The notes would mark the first time in 17 years the most populous U.S. state's government would have to resort to the unusual and dramatic measure -- and would follow warnings by Wall Street that the state's credit ratings may be lowered, which would increase its borrowing costs.

Read it here; http://www.reuters.com/article/politicsNews/idUSTRE5601F220090701

Ask yourselves a simple question; if the U.S. financial situation is almost tipping over currently....and that assumes a 4% interest rate on all of our debt....what happens if we lose our credit rating and now owe all the principal but owe interest at 10%??? It seems to be a common sense question, but common sense disappeared quite some time ago.