Understanding Government

Preparing for the day Washington’s brinksmanship results in financial calamity, California’s state treasurer is lining up $5 billion in loans, reports Kevin Yamamura of The Sacramento Bee.

The move is being launched to forestall a “cash flow disruption and market turmoil” should elected federal officials fail to break their impasse, leaving the nation’s most populous state unable to pay its bills.

According to Michael Marois of Bloomberg, the state will seek competitive bids on the private notes July 26. In the event that congress averts a crisis, the sale will be canceled.