Maybe we should call these IOUs “California bucks”. In your example, flu, each Calfornia buck can be converted to 0.65 of a Federal buck (or whatever the market determines those California bucks are worth).
This would be a nice solution to the problem of overspending by California government. All spending in California would effectively be reduced by 35%, across the board.
Of course, eventually the Federal bucks would also be convertible to less in other currencies and real goods, just like the California bucks. But that’s another few years down the road.
I know, I know, this won’t be allowed to happen – a permanent reduction in Cali govt spending. But it’s fun to dream.
