There is an old saying that he who lives by the sword dies by the sword. The same also applies to fiat currency and allowing government to borrow money. Those that live by fiat currency will eventually die by fiat currency which is an historic fact. Allowing government to borrow money....well one would only have to look at the Federal deficit to conclude that a States would probably do the same thing. It is easy to give away money that is not yours and the States have done it well.

Sadly, the various levels of government have extracted so much money from the majority that they are pretty much out of money. The wealthly are loaded, but with rapidly depreciating fiat currency. Winding down the costs of government is manditory but it has never been done, that I know of, in a civilized manner.     

Guys like Ron Paul and Gindrich were fiscal conservative and if the majority would have listened to them, we would not be in the debt we are in today and the States would not be facing the tremedous losses. I'm not sure however that Gindrich is right on this issue but it is one of the ways in which to attach the problem.

Remember, there is no real way out of this mess. The USDollar is dying and we can only attempt to watch it die in the most humane manner. Having attorneys fight over the bankruptcy proceeding scares me, but what are the alternatives.

I fear that the ruling elites are currently keeping us in stagnation attempting to strengthen the USDollar, to the demise of the majority. State Bankruptcies should continue the depreciation of real estate, but the unfunded liabilites and other government debt both State and Federal, will be just two great to overcome. 

Keep an eye on the precious metals as they are the only decent indicator of value.  In my opinion State bankruptcies would force another huge round of business BKs and the losses in revenue would cause a spiraling $USD to it's death. 

What I really expect is a major bank holliday to come within a number of months and a major depreciation of the USD handed to Americans when the banks open.