But the truth of the matter is that the budgetary and financial disaster swirling around California or Illinois individually is bigger than that of the PIIGS collectively. In fact, without Government help, there are several States that would likely be bankrupt.
Here's a quote from John Williams' Shadowstats.com which I sourced from Jim Sinclair (http://www.jsmineset.com/):
Economist John Williams has been warning of an economic collapse for a few years. In his latest Shadowstats.com report, he says, “. . . the U.S. remains the proverbial elephant in the bathtub in terms of pending effective sovereign bankruptcies.” Williams thinks it will all hit the fan within 6 months and is predicting a dollar catastrophe. Europe is a sideshow to the coming main event. Williams says, “The various European crises remain an intermittent foil for the U.S. dollar, pulling market attention away from the unfolding solvency crisis in the United States and a likely move to massive selling against the U.S. currency. Accordingly, high risk of the early stages of a hyperinflation (see Hyperinflation Special Report) beginning to unfold by mid-2011 continues.”
I'm sure most of you have seen the segment on 60 Minutes this past Sunday which focused on the financial catastrophe facing several States.Meredith Whitney stated that she believes there will be several State bankruptcies and municipal bond defaults in 2011.
I personally think the Fed will accelerate the printing press and the Government will implement another stimulus plan in order to avert the collapse of several States. This will feed into the John Williams scenario of a massive sell-off in the dollar and precipitate the early stages of hyperinflation.
And with that holiday cheer, I thought I would leave you with a good chuckle from "Family Guy," in honor of my completing the first unit (11 weeks) of Italian at the Italian Institute in Denver: