Will Greece Go Bankrupt? And If So Why It Matters To You.

[No DUplicitous DUpe]

posted with permission from http://sane-ramblings.blogspot.com/2010/04/will-greece-go-bankrupt-and-if-so-why.html

This piece's purpose is to alert you because what happens in Greece will affect you.

To end the Greek financial crisis, the 16 member Euro Zone finance ministers told investors Greece can borrow up to 30 billion euros ($40 billion) from them, and at just 5% interest on a 3 year loan. The International Monetary Fund {IMF} may loan up to 15 billion euros more. Now many financiers view the Greek crisis as over.

But they are wrong, for all this bought was time. Greece's debts will overwhelm the Euro Zone and the IMF commitments, for Greece is broke. Offering to loan them more money only adds to the debts they are already unable to pay. And that's assuming the Euro Zone and IMF will actually loan Greece the money.

Greece must confront its deep financial problems by slashing its expenses and raising its taxes. But even the idea has sent thousands of Greek protesters into the streets, and if implemented, it could cause riots and bring down the government.

As for a Euro Zone bailout, in addition to Greece there are four other Euro Zone members Portugal, Ireland, Italy and Spain, also in serious financial trouble. If need be, will they too be bailed out?

If you are American, why does this matter to you? Because Greece is a preview of events to come. For the U.S. is by far the biggest debtor nation in the world, and without loans from global investors, including China, it could not pay its bills NOW.

As America's bills mount, a day of reckoning is coming.

If this is hard to believe, think of the financial crisis that began so abruptly in 2008. Everything was going great, until suddenly it wasn't and the world was on the brink of financial collapse. The "experts" never saw it coming and they don't see it now. How bad is the spending? Please see: www.usdebtclock.org/

But we Americans, working together, can learn from Greece's crisis and rein in our government's out of control spending before we sink into a financial abyss so large that it will swallow our nation and take the world with it.

[enki23]

1. control spending? how about we raise the top marginal tax back to 90%

and cut the military by about 75%.

[No DUplicitous DUpe]

3. I agree with cutting the military budget, cause that's the source...

..of the out of control spending. A higher top marginal tax rate is in order, too. Maybe 55%?

[Dan]

2. Wondering,

If the government did the following - would it make a difference?

#1. Repeal the Bush tax cuts and definitely not renew?

#2. Ensure that all Corporations paid taxes - even if that required a defined minimum percentage payment on revenue. This would include the parent corporations that have investments in the U.S.

#3. Require Corporations that have their headquarters located in foreign countries but have business in the U.S. to pay a defined minimum percentage tax.

#4. Companies that outsource or relocate their businesses out of the U.S. would be required to pay a substantial percentage of the 'unemployed workers' salary - to include making up the difference between their previous pay and what they would make as a result of a new job. Plus a tax on the products that they would then try to sell in the U.S.

#5. Return to a higher tax rate on the upper income.

#6. Review our foreign aid policies...

#7. Reduce the military payroll by 25% the first year....and start the process of getting out of the war business.

#8. Put Americans back to work - rebuild the infrastructure of the nation.

#9. Lets stop this stupid war on drugs....the cost is too much and benefits too few.

The nation is not poor, and maybe our spending is somewhat out of control, but it may be that our priorities are just totally messed up as a result of a belief system that we can have it all without paying for anything.

[No DUplicitous DUpe]

4. That's a great post, Dan. #7 is the key...

..as we spend SO much (1 trillion a year?) on weapons and war.