Sunday, May 9, 2010
Greek Financial Crisis Threatens Economic Stability Worldwide
The collapse of the Greek economy has sent shock waves through world financial markets, and is threatening not only all of Europe but the United States as well. The "Greek effect" has even made its impact felt in Asia and South America.
As nations have turned to greater socialism, and the welfare state mindset (Greece is the epitome of this) the burden placed on a counties economic system to support an ever growing dependency on government welfare statism is significant. In short when a system spends more than it has it will go broke, the result being great suffering across the broadest of landscapes... if you will.
To one degree or another most of Europe, as well as the rest of the world, including the United States of America, is following the path that led to Greece's eventual collapse. It should come as no surprise the solutions being offered from most quarters is to do more of the same that created the problem in the first place. Borrow against assets you don't have the have money you will never be able to pay back and dump the money into a system that created the failure in the beginning.
The United States is admittedly a ways off from the disaster that Greece is now facing. However , if the U.S.A and the rest of the socialist world don't get their collective heads out of their collective arse. The New York Times, a magazine I only occasionally read for obvious reasons, had much to say on this subject. Here is a very cogent observation taken from the article published yesterday.
"Greece may just be an early warning signal" said Byron Wien, a prominent Wall Street strategist who is vice chairman of Blackstone Advisory Partners. "The U.S. is a long way off from being where Greece is, but the developed world has been living beyond it's means and is now being called to account." Seems like straight forward common sense doesn't it? What are the odds the powers are listening?
So given what is developing into a crises that is global, what is the government of the United States proposing to do? That's right, borrow money (adding to our debt) to give it to a bankrupt country whose very system is responsible for their problems. Greece will be propped up for a short a time through what amounts to charity from the U.S. (and others) until it collapses again. Unless of course it and the rest of the world learns when times are as they are the party is over.
An excerpt from Hot Air hits the nail squarely on the head.
US taxpayers will be helping to foot the bill for the Greek bailout, via the Interna tional Monetary Fund. And if the Obama administration doesn’t draw a clear line, Uncle Sam may soon be on the line for even more and larger European “rescues.”
The Greek government, with its high taxes and profligate spending to support large bureaucracies and social programs, is bankrupt. Its bonds have been downgraded to junk status. …
Concerned that the fiscal damage could spread throughout the EU and the world, other European Union members and the IMF have pledged $145 billion to bail out Greece. And since the United States is the largest contributor to the IMF budget, our government will be funneling billions of American tax dollars to Greece.
No one wants to see Greece fail — the economic stability of Europe is important. But US taxpayers have funded bailout after bailout, and our country faces a debt crisis of its own.
While the crises in Greece is indeed unfortunate, it is time that America makes a determined effort to get our own financial house in order. Frankly we must stop being the worlds greatest charitable organization and at the same time support our interventionist foreign policy and continue to support our worldwide military presence.
America must begin to make some choices. The choices are clear... and the choices must be to support American interest and prosperity and stop trying to be the worlds benefactor.
For more razor sharp commentary and opinion on this subject visit Another Black Conservative and Atlas Shrugs