Fiscal Survey of States

by: Mike Stathis

I ran across an interesting document from my research library that I have been meaning to post but kept forgetting. It is a piece on the financial condition of states released in June 2009. It's a bit long and has a lot of low-yield info, but if you scan through it you can find some good data (see "PDF version" here).

The only problem is that I feel much of the reported numbers must be a bit dated because they do not reflect the current situation.

Those of you who read America's FInancial Apocalypse might recall how I made my case for a depression by positioning the real estate bubble as the triggering event.

Thereafter, I expected more cards to drop - healthcare, the entitlements, consumer and federal debt, pressures from China to dump the dollar, inflation, etc. As you are probably aware, this is precisely what we have seen. You might also recall what I discussed would happen and what would be needed to recover.

The solution is to restructure free trade and healthcare.

It is unlikely that either will happen anytime soon.

Finally, even if these two problems were addressed adequately, I predicted a large tax increase that would persist for many years and would come in the form of hidden taxes, followed thereafter by the dreaded state and federal income taxes. I will discuss this as well as healthcare in the next issue.