The unemployment rate may surge in California to 11.5%. That’s 0.5% higher than it is right now. Governor Arnold Schwarzenegger said that the economy will not recovery quickly.
California is currently going through a serious budget crisis. We’re going to hear more about troubles for state governments and we’re also going to see more pressure build for the federal government to bail them out. The unemployment rate in Michigan is 14.1%.
This is another reason why I think the dollar is going to suffer. Outside of our current fiscal troubles, there are hidden worries that are cropping up at the state level.