Comments on: Why the Greek Crisis Won’t Happen Here

By: Jose

Jose — Sat, 08 May 2010 17:05:22 +0000

aDude

It only takes a few hours for what is happening in Greece to happen in the U.S. Your statement that it would take several years for it to happen in the U.S. is pure speculation or wishful thinking.

There is no solution without restructuring the debt and as you said reducing entitlements.

By: aDude

aDude — Sat, 08 May 2010 14:25:11 +0000

There are a lot of differences between the U.S. and Greece. The most important difference is that the Greek crisis is right now, and the real crisis for the U.S. won’t happen for several years.

In one respect, the Euro crisis is good the the U.S. It reinforces the view of the dollar as the one stable currency. That will increase the world appetite for U.S. debt. It gives us a bit more cushion while we get our own economic house in order.

Long term, the fiscal problem is based on the increasing percentage of the population that will be eligible to receive retirement benefits, particularly Medicare. Raising the retirement age to 70 or 73 would solve the problem without massive tax hikes. We already did this once in the early 80’s. My own age group has its retirement age set at 67. To achieve long term economic stability I’d be willing to see that raised to 73.

There are two benefits to such a solution. First, obviously, we don’t rack up as much debt and we don’t end up with massive tax hikes. Second, we keep a larger percentage of the population in productive jobs, thereby adding to economic growth. That growth, in turn, helps to pay down the debt in the first place.

By: Jose

Jose — Sat, 08 May 2010 13:31:43 +0000

Here is what we could do:

1. Abolish the Federal Reserve.

2. Nullify the debt.

3. Use our 5000 nukes to obliterate any nation that protests.

4. Actually achieve energy independence.

By: Jose

Jose — Sat, 08 May 2010 13:28:26 +0000

Most of Japan’s debt is held internally by Japanese. America’s debt is held largely by foreign interests.

And the debt is mathematically impossible to ever pay. There is insufficient money in existence to pay the debt.

We are in a downward spiral.

How can we not end up like Greece?

By: ottovbvs

ottovbvs — Sat, 08 May 2010 12:16:25 +0000

…….These speculations which are based malign or ill informed scaremongering from the right intended to energize their not very well informed base, are so completely wrongheaded as to be humorous…….there isn’t the faintest equivalence between the Greek situation and the US one……..not an iota…..it’s not worth wasting any more time on it

By: JonF

JonF — Sat, 08 May 2010 06:03:58 +0000

Re: about when the rest of the world figures out that our only industry, the banks, are screwing all their clients with 10,000 trades/second?

Are you talking about America or Iceland? Because America has plenty of other industries and businesses than finance.

Re: Japan is a manufacturing powerhouse

I don’t have current figures but before the recession the US was responsible for 23% of the world’s manufacturing output– a good deal more than Japan or even China.
Why are so many people so incredibly misinformed these days? Are they just lazy and do not bother to learn the facts, or is some propaganda organ, one which would have Comrade Stalin drooling with envy, delibeately barinwashing them with gargantuan lies?

Re: If oil ever moves to the Chinese yuan we’re screwed.

The Chinese absolutely do not want their curency to become the reserve currency. They would rather the world employ soggy leaves than lose their freedom they now have to shamelessly manipulate their currency to their own advantage.

By: uriel81

uriel81 — Sat, 08 May 2010 05:00:58 +0000

The reason we can print money is because the dollar is the accepted currency of exchange for the world. If oil ever moves to the Chinese yuan we’re screwed.

By: uriel81

uriel81 — Sat, 08 May 2010 04:57:58 +0000

Japan is a manufacturing powerhouse while the US makes munitions, scrap metal and synthetic derivatives, so I don’t really think that gets us off at 67% debt-to-GDP vs. their 200%.

By: mickster99

mickster99 — Sat, 08 May 2010 04:36:43 +0000

Pardon me while I indulge in broad generalizations and ad hominem attacks. Most anything and everything from the right these days will have the unmistakable rightwing appeal to unhinged hysteria and paranoia. And it’s always dependable success in generating obscene cash flows for it’s most obvious and successful performers all readily verifiable 24/7. So why not grab on to anything in the news, real or imagined, preferably the later, that will cause irrational frothing at the mouth angst amongst the large cadre of tea-bag ready idiots?

By: uriel81

uriel81 — Sat, 08 May 2010 03:42:04 +0000

David, you seem to be in the minority of opinions I’ve heard around the TV for the last days… Oooo, that sounds bad. How about when the rest of the world figures out that our only industry, the banks, are screwing all their clients with 10,000 trades/second? …an actual number showing that they hold no genuine financial positions other than massively leveraged ones. That they are using the Feds funny money, an institution that refuses to show they bought junk from Goldman and AIG that they continue value highly and print an enormous amount of paper money.

I think the crisis could spread to the UK where the pound is falling now, and from there to here. Of course, I continue to hope you are right.