Greece is near default on its sovereign debt as a result of budget deficits of (now reported) 16% of GDP. Greece is a “state” in the EU. Let’s see how US states are doing:
- California- deficit is 22% of state GDP. (Note as well that California by itself is the 8th largest economy in the world.)
- Florida- 19.9%
- Arizona- 19.9%
- Nevada- 16%
Some differences between the approach of the EU and US:
- It appears today that the EU will NOT bail out Greece. Instead the dirty work will be left to the IMF.
- In any case, the EU was requesting strong austerity measures from Greece.
- In the US, there has been almost no discussion FROM EITHER POLITICAL PARTY about the wisdom or sustainability of state government bailouts. There have been NO calls for any cutbacks.
One last note- if the IMF steps in, then the USA will once again be bailing somebody else out. Remember that last year, Congress approved another $160 billion of guarantees to the IMF. The US contribution to an IMF bailout of Greece will be about 17% of the total.
Why is it that the US has to step in when the most interested parties- the Europeans- won’t? I suggest that we get the IMF to bail out California!
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Great suggestion in that last line
civil truth (Diary) Wednesday, February 10th at 2:11PM EST (link)Especially if they could impose the necessar fiscal discipline on the state, especially firing state workers and cutting pensions.
The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis
http://www.gmsplace.com/
Kowalski: not really serious here, I think
civil truth (Diary) Wednesday, February 10th at 2:15PM EST (link)I don’t want unaccountable international organzations running our government, even at the state level.
However, the author does point out the inability of our elected officials to behave with fiscal sanity – and the voters enable by reelecting these folks.
And there will be consequences of this behavior – as there have been for Greece – and they may ultimately result in diminishing or end our state/national sovereignty
The greatest evil…is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed, and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voice. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the offices of a thoroughly nasty business concern. -C.S. Lewis
http://www.gmsplace.com/
Well the EU has worse problems than just Greece
Richard Mullins (Diary) Wednesday, February 10th at 2:24PM EST (link)they have to worry about 3 other member states(Portugal,Ireland, and Spain) was well as a few banks in France and Germany as well. It looks this EU is going down hill and I hope we don’t attempt to help them out.
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Joe Biden is like a Decrepit Park owner with a Meth lab that happens to not only be a dealer but a user.
Let’s Bankrupt the Democratic paty. Make spend all the money to defend thier candidates.