Unsustainable Debt? Violent Protests? Its All Greek To Me
May 24th, 2011
Like the Parthenon, Greece is in ruins
As the United States comes to grips with its own budget mess, the nation of Greece is expected to receive more financial aid from the IMF and the EU, as part of a nearly $120 billion bailout package to be spread across Europe. This latest move comes in yet another round of bailouts aimed at keeping the Euro afloat amidst record debts and deficits.
Greece’s debt to GDP ratio is expected to hit 150% by 2015, which could destroy the Eurozone if it isn’t brought down, not to mention do irreparable damage to Greece’s economy. To accept the money, the government had to make dramatic budgetary and fiscal changes in accordance with IMF guidelines to ensure a stable recovery with the fund’s money as the buffer. Essentially, Greece has exported its budget sovereignty to an international body because it lost the ability to control it.
This is America’s future if we don’t act now to shrink the size of our own government and shrink our near $15 trillion debt. According to the Congressional Budget Office, the US debt to GDP ratio could hit 90% by 2020, which shouldn’t surprise anybody given the government’s egregious spending habits. Greece got themselves into their fiscal hell-on-earth by having bogus accounting practices, and the idea that the government could afford expensive entitlements and a “nanny state” culture. Other nations took the same stance, and are now paying the price for it.
Dear Congress, if you don’t want us to end up like Greece, or any of the other failing nations of Europe, shrink the size of government now, before it’s too late.
