While everyone focuses on the PIIGS debt issues, the mainstream media continues to completely ignore the massive debt issues facing US states. If you think QE is large now, wait until the states’ bailout begins en masse. For those new to the precious metals market, this is why $1500 gold and $44 silver is still an unbelievable bargain.
States saw record-breaking losses to their pension funds and in their tax revenues, as the recession wreaked havoc on payrolls and investments,
It was the most dramatic drop the Census Bureau has seen since it began collecting state revenue data in 1951.
States reported a total $477 billion drop in “insurance trust revenue” – mostly money from pension funds, while tax collections fell by $66 billion.
And the worst may still be to come.
Fiscal 2012 “will actually be the most difficult budget year for states ever,” said Nicholas Johnson, director of the state fiscal project at the Center on Budget and Policy Priorities, in an interview with The Washington Post.
The center reported last month that states will see budget shortfalls totaling more than $140 billion next year as they continue to wrestle with depressed revenue levels while federal stimulus dollars and reserves run out.