Illinois (the canary in the coal mine)is in desperate financial shape. California is not far behind. What about Connecticut, New Jersey, Pennsylvania, West Virginia and Kansas? Kate Gibson of Moneywatch wrote an article, showing how 37 states have Pension and Medicaid costs that exceed their yearly tax revenues.
States can not continue to raise taxes on their citizens. You can not get blood out of a turnip. Their are only so many productive tax revenue producing citizens available. State lotteries (which are really a form of voluntary taxation) can only fill in so much of the gap. What options do these troubled States have?
Well, since they can not print money out of thin air, like the Federal Government seems to do, their options are limited. Cut backs are inevitable. States will need to start certain austerities much like Greece has been forced to do. By the way, this is not going over well in Greece. Greece is about to erupt any day now. States will have to reset pensions and reduce Medicaid benefits.
States will have to be creative and stimulate friendly business environments. They need to bring or help create meaningful jobs within their borders. They can also become Crypto friendly.
Yes, I believe the States that are first to embrace Crypto currencies will be the survivors. Which States have taken the lead on being Crypto friendly? How about, New Hampshire, Nevada, Texas, New Mexico and California. States are in a jamb. I encourage all to help educate your State on why Crypto currency is here to stay and the future of Fin Tech. For any who are in State government, here is my advice to you. If you do not want to be the next Puerto Rico or Venezuela I suggest you become Crypto friendly and adopt it in your State. Welcome the block chain and study how it works. Attract Fin Tech into your State and become leaders in attracting Crypto businesses. The sooner a State does this, the sooner the State might be able to become financially solvent and be around for the next 100 plus years.
