Greece Debt Crisis Coming to a Neighborhood Near You?

[Danno 1,228]

Greece Debt Crisis Coming to a Neighborhood Near You?

Some lawmakers and analysts are sounding the alarms over America's fiscal policies and deficits, warning that Greece's financial crisis could be coming to neighborhood near you.

Until its day of reckoning arrived this week, Greece lived for years beyond its means, borrowing money and spilling red ink to finance excessive government spending, offer socialized health care and provide lavish wages for federal workers.

Sound familiar?

Some lawmakers and analysts are sounding the alarms over America's fiscal policies and deficits, warning that Greece's financial crisis could be coming to a neighborhood near you.

"I'm very concerned we're headed down the same path as Greece," Rep. Cathy McMorris Rodgers, R-Wash., told Fox News. "Greece found itself in a situation where its public debt was 113 percent of its GDP. They had taken on all this debt, expanded programs and America is headed down the same path.

"If governments don't start tightening their belts, implementing balanced budgets and prioritizing and start saying we can't afford these bailouts for everyone, I don't see where it's going to stop," she said.

Greece is buckling under a debt burden of $388 billion, which is bigger than its $356 billion economy. Greece was facing a May 19 due date on debt it said it couldn't repay without a bailout. So Greek lawmakers voted Thursday 172-121 to approve austerity measures insisted upon by the EU and IMF worth about $38 billion through 2012 – that will slash pensions and civil servants' pay and further hike consumer taxes.

In the United States, the federal government is in debt about $12.3 trillion, which is roughly 80 percent of the nation's $13.3 trillion economy.

But some economists aren't worried that America will suffer the same fate as Greece.

"The United States government is a currency-issuing nation, our debts are denominated in dollars, we control the dollars," said economist Mike Norman who noted that Greece's debt is denominated in euros without the ability to create euros. "So it's functionally like a state in the United States or me or you or anybody else who's strapped for cash. If it doesn't have it, it doesn't have it."

"So the question of solvency or going broke or not having the money, as the congresswoman said, is totally inapplicable," he said.

But J.D. Foster, a senior fellow in economics at the Heritage Foundation and a former economist in the Bush administration, told FoxNews.com that America is headed toward its own Greek tragedy if it doesn't tackle its fiscal problems.

Foster said it's unlikely that the U.S. would try to inflate its way out of its debt. "Frankly it doesn't work and it's a self defeating approach," he said. It helps that the world's reserve currency is the dollar, he said. But he added that if bond investors lost trust in the U.S. like they did with Greece, the dollar will not save the country.

"I think what is more likely to happen is we are headed toward a crisis and we'll deal with it, either be enacting a large VAT (value added tax, or national sales tax) or not enacting a VAT and slash spending back. But one way or another, we'll address the situation. The problem with Greece, it's doubtful they will do what is necessary."

http://www.foxnews.com/politics/2010/05/07/greece-debt-crisis-coming-neighborhood-near/

[Heracles 417]

So lets cut from the Military's $1.3 trillion annual budget and then we we'll have plenty of money. What many black-check military advocates fail to grasp is that the military adds zero value to a country. Whereas investing $100 billion to lay high speed rail, will ot only create jobs but offer something that can be unitized for years to come.

The country needs to get it's priorities straight.

PS Greece has mandatory national conscription.

[Usui Takumi 1,562]

Basically what they are getting at is that the EU has effectively removed one of the economic safeguards that has always protected a nation, currency inflation. The EU model doesn't allow flexibility, so when Germany is doing quite well its driving up the Euro and countries like greece and spain don't get have the opportunity to allow their currency to fall. That's one of many reason's the UK never adopted the Euro.

What will happen to the US in the next 20 years if we don't control spending? It will be controlled for us as the value of the dollar plummets and with it the value of our debt as well as our standard of living.

[Usui Takumi 1,562]

So lets cut from the Military's $1.3 trillion annual budget and then we we'll have plenty of money. What many black-check military advocates fail to grasp is that the military adds zero value to a country. Whereas investing $100 billion to lay high speed rail, will ot only create jobs but offer something that can be unitized for years to come.

The country needs to get it's priorities straight.

PS Greece has mandatory national conscription.

Also Booyah, I notice you keep using the term "we" yet you say you don't want to assimilate as an LPR. I'd suggest you stop using the term the "we" as it doesn't apply to you. You are not an American and are currently only a guest in our house.

[Heracles 417]

Basically what they are getting at is that the EU has effectively removed one of the economic safeguards that has always protected a nation, currency inflation. The EU model doesn't allow flexibility, so when Germany is doing quite well its driving up the Euro and countries like greece and spain don't get have the opportunity to allow their currency to fall. That's one of many reason's the UK never adopted the Euro.

What will happen to the US in the next 20 years if we don't control spending? It will be controlled for us as the value of the dollar plummets and with it the value of our debt as well as our standard of living.

Good point. The single currency just doesn't work when you have countries with such different economies and policies. For example, the Euro is strong which makes it expensive to holiday to Greece. Whereas under the Drachma, going there cost peanuts. It's the same deal with doing business with Greece. The best thing Greece can do is actually drop out of the Euro.

[Heracles 417]

Also Booyah, I notice you keep using the term "we" yet you say you don't want to assimilate as an LPR. I'd suggest you stop using the term the "we" as it doesn't apply to you. You are not an American and are currently only a guest in our house.

We refers to the United States, thus me living here. We also means US tax payer, like myself. Considering the amount of federal tax I pay, I have literally earned the right to speak about it.

Trust me, I wouldn't want to be mistaken as being American. Though I do have to say, it's quite funny that someone from San Fran consider themselves America. No offense but Iraq is probably more American.

Edited May 8, 2010 by Booyah!

[Usui Takumi 1,562]

We refers to the United States, thus me living here. We also means US tax payer, like myself. Considering the amount of federal tax I pay, I have literally earned the right to speak about it.

Trust me, I wouldn't want to be mistaken as being American. Though I do have to say, it's quite funny that someone from San Fran consider themselves America. No offense but Iraq is probably more American.

And yet you seem to hate this country and pine for Australia...

I'm sure the NY bomber also paid US taxes....

[Usui Takumi 1,562]

Sorry for the NY comment, that was uncalled for.

[Heracles 417]

And yet you seem to hate this country and pine for Australia...

I'm sure the NY bomber also paid US taxes....

As did Timothy McVeigh and do the 16,000 murderers. The only reason that guy was targeted was because he is Muslim and Pakistani. AA have killed 100 fold more than 9/11 and Iraq combined yet 'you' turn a blind eye to that. Thus the condition of 2010 US of A.

Hate? If I hated it I would not be here. I merely point out the things others are doing better; as in beat 'you'; as in world renowned. Only in America could that be perceived as hate. Guess what? The Japanese live longer. Oh the hatred..

Edited May 8, 2010 by Booyah!

[Usui Takumi 1,562]

As did Timothy McVeigh and do the 16,000 murderers. The only reason that guy was targeted was because he is Muslim and Pakistani. AA have killed 100 fold more than 9/11 and Iraq combined yet 'you' turn a blind eye to that. Thus the condition of 2010 US of A.

Hate? If I hated it I would not be here. I merely point out the things others are doing better; as in beat 'you'; as in world renowned. Only in America could that be perceived as hate. Guess what? The Japanese live longer. Oh the hatred..

Its definitely a good thing to point out when your home country is doing something "better". In fact its an important factor in why immigration is so important, ie the spread of ideas. But when a person starts to say that everything their countries does is better, as you have done in many threads, that's a sign that the person is no longer happy living in the country and probably wants to and should be heading home.

I shouldn't have used the word hate when dislike is more appropriate.

What do the Alcoholic Anonymous have to do with killing people lol.

Edited May 8, 2010 by Sousuke

[Usui Takumi 1,562]

To Danno: Apologies for dis-railing your thread.

[Heracles 417]

Its definitely a good thing to point out when your home country is doing something "better". In fact its an important factor in why immigration is so important, ie the spread of ideas. But when a person starts to say that everything their countries does is better, as you have done in many threads, that's a sign that the person is no longer happy living in the country and probably wants to and should be heading home.

I shouldn't have used the word hate when dislike is more appropriate.

It's true. There are a lot of things I strongly disagree with and believe others are doing much better - are better at. Hence, why in just under seven months, we will be moving to AUS.

I think the biggest issue here is that people have bee indoctrinated to believe US (by default) equals #1. So when few like myself come along as say um that is not correct, people don't know how to take it. It's why people are actually willing to argue that crime is low and kids are just as safe as they are anywhere. Or the a city in the middle of America that has been hit the hardest by the outsourcing of manufacturing jobs abroad, is still awesome. Next people are going to tell me America does not have millions in poverty nor homeless. The justification is that since a country like Australia too has homeless, then surely it's the same there. Australia has murders too, though they just so happen to occur 78% less per capita.

Another example, San Fran is not a bad US city and I am sure you like it. Yet, reality is that when compared to other internaitonal cities, it doesn't rank highly. It's still a great US grade city, its just not anything special when actually compared to other cities abroad. For some reason me pointing this out warrants attacks and hatred accusations.

How do you guys expect to improve when you demonize and ignore the world and assume you are the best?

Edited May 8, 2010 by Booyah!

[Usui Takumi 1,562]

Good luck in Australia.

[Ban Hammer 13,656]

So lets cut from the Military's $1.3 trillion annual budget and then we we'll have plenty of money. What many black-check military advocates fail to grasp is that the military adds zero value to a country. Whereas investing $100 billion to lay high speed rail, will ot only create jobs but offer something that can be unitized for years to come.

The country needs to get it's priorities straight.

PS Greece has mandatory national conscription.

nevermind that if not for the military, you'd be goosestepping and speaking german right now.

Edited May 8, 2010 by charles!

[Usui Takumi 1,562]

nevermind that if not for the military, you'd be goosestepping and speaking german right now.

Actually it would be Japanese...