U.S.debt has been downgraded, and a budget deal is left to a "supercommittee." The world holds its breath to see if Greece, Italy,Spain or Portugal will default and destroy the Euro. China is letting its currency rise, making exports more expensive. Americans have lost confidence in the economy amidst bankruptcies and foreclosures.

What else could there be to worry about in the world of money and finance? Well, there's one more catastrophe waiting to happen.

The disaster revolves around the overwhelming, and mostly hidden, financial woes of many states.

Since states don't have the option of "printing money" -- an option that gives some breathing room to the United States and the European community -- state budgets are coming to grips with huge shortfalls. This, despite the fact that 49 of the 50 states have balanced budget amendments.

According to a new report just released atTruthinAccounting.org, the states have used accounting trickery to conceal a total of $1 trillion of outstanding bills. The report identifies five"Sinkhole" states and five "Sunshine" states. Truth in Accounting is a national, non-profit advocacy group dedicated to"promoting honest, accurate and transparent accounting."

Truth in accounting

This new report charges: "State officials permit themselves the use of a