State Governments Bankrupt And Borrowing

You’ve probably been hearing that there are some problems with the local state government’s budgets. So just how big is the problem?

The following picture shows the 50 states of the USA. The dark red states show which ones are currently borrowing from the Federal Government every month to pay their unemployment claims. The lighter red states show which ones will be borrowing in six months or less to pay their unemployment claims.

I have mentioned over the past few weeks that we are a country made up of Greek like bankrupt states, and this chart clearly shows that is the case.

The Federal Government is in far worse shape. However, instead of focusing on the total debt burden which is growing exponentially on its own, I want to look at another aspect of the debt that is usually never discussed: Interest Payments.........