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Archive for the ‘Greece’ Category

NetRight Daily » Greece In Ruins, Can It Ruin All Of Us?

netrightdaily.com2/17/12

By Frank McCaffrey — Here is an illustration of what financial woes in Greece can mean for the rest of us. Hear from ALG's Robert Romano on the domino, or should we say pillar, effect of Greece's financial problems.

EUR Remains under Pressure as Greece Concerns Persist

jutiagroup.com2/23/12

The euro remained under pressure against the US dollar throughout yesterday's trading session, as investors remained cautious regarding Greece's financial situation. The EUR/USD spent much of the day range trading …

The Idea That The US Is Similar To Greece Is Not Nearly So Farfetched As It Sounds.

In Less Than 20 Years US Debt Could Exceed Its Income

Greece

Greece is so deep in debt and its economy is in such chaos that there are now national strikes, and violent street protests and its pensions are on the verge of collapse.

Why?

Because Greece owes so much money to other countries.

Greece’s economy is now so bad that it’s government is having to beg for even more loans at even higher interest rates just to stay afloat.

The U.S.

The U.S. government’s present financial obligations will result in a national debt of around $20 trillion by the end of this decade and taxpayers will have to pay about $1 trillion a year, just to cover the interest.

So How Bad Is $20 Billion?

Bob Greenstein who works with the liberal leaning Center on Budget and Policy Priorities says,

"Our economy is much stronger, and our financial system is much stronger, but you know even if we experienced just a fraction of the problem of Greece’s, it would really be a very painful experience for us".

"If you wait ’till the crisis hits then your options may be more constrained and you may have to take action that’s more draconian and hits the average American in painful ways".

It’s true of course that the U.S. is much stronger, but it’s also true that the U.S. is headed down the same dangerous path and The Congressional Budget Office projects U.S. interest payments on our debt will quadruple over the next decade, becoming the largest single item in the budget.
Doug Holtz-Eakin, who is a former director of the Congressional Budget Office and was a campaign adviser to the 2008 presidential nominee Sen. John McCain, R-Ariz., notes that,

"In 2010 we’ll be paying $916 billion in interest alone. So we’re really borrowing just to pay interest and we are steadily getting to the point where we’re getting a new credit card just to pay off the old one".