Simple math

California's decision to use IOUs as a way to keep the budget wheels turning is understandable, but faulty.

Based on my own experience on the receiving end, I can say this: IOUs are a great concept unless you are the U part.

A better strategy would be my Keep Moving Plan. KMP was inspired by that old urban joke that there's just one Blauplunkt car stereo in the city of Boston: It just gets stolen and re-stolen.

Here's how it works:

Invest heavily in goods using credit, then keep inventory idle. Right before credit-line grace period is up and interest commences, return all goods to vendor. Then re-purchase goods at much cheaper price and adjust for operating costs. Result: Invigorated marketplace, improved bottom line and heightened consumer morale.

An example:

Purchase four polished-cotton, three-quarter-sleeve shirts from Nordstrom for $288.

Start the next four days by viewing the newly bloated Visa statement online.

Return all goods.

Purchase four polished-cotton, three-quarter-sleeve shirts from Goodwill for $27.96.

Net savings (adjusting for cost of detergent and electricity needed to boil goods, twice): $258.04

Along with the measurable market benefits, there's the enormous satisfaction at having cut costs without an embarrassing public proffering of IOUs.