States of Crisis for 46 Governments Facing Greek-Style Deficits

46 States and growing.

Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end.

Unemployment was 12.4 percent in May, 2.7 percentage points higher than the national rate. Lawmakers gridlocked over how to close a $19 billion budget gap are weighing the termination of the main welfare program for 1.3 million poor families or borrowing more than $9 billion in the bond market. California, tied with Illinois for the lowest credit rating of any state, is diverting a rising portion of tax revenue to service debt, Bloomberg Markets magazine reports in its August issue.

From my June 22 Commentary, Gold, The Formula and Illusion of Recovery.

I know much of the media and many individuals have filed the structural deficit under "Who Care's" and moved on. It is, nevertheless, very important to confidence in and fate of the U.S. dollar. Total revenues collects by the US government continue to lag devaluation in the US dollar. In other words, "real" or gold adjusted total revenues continue to collapse at an alarming rate.

Source: bloomberg.com