US Action News

In an extraordinary briefing to trade union chiefs last week, Commission President Jose Manuel Barroso set out an ‘apocalyptic’ vision in which crisis-hit countries in southern Europe could fall victim to military coups or popular uprisings as interest rates soar and public services collapse because their governments run out of money.

Although Greece’s output is just three percent of the European Union economy, its financial collapse roiled continental markets and required an international bailout package. Imagine what would happen to U.S. markets if California, which is 17 percent of the national economy, experienced a Greek-style implosion. Far-fetched? Consider the similarities.

The total amount of debt issued by public and private sector institutions in Greece, Portugal and Spain that is held by financial institutions outside these three countries is roughly €2,000bn ( $2.5 TRILLION dollars ). This is a staggeringly large figure, equivalent to about 22 per cent of the eurozone’s gross domestic product. It is far higher than previous published estimates. It indicates that, if a Greek or Portuguese or Spanish debt default were allowed to take place, the global financial system could suffer terrible damage. Putting it bluntly, Greece partied for too long and has almost certainly left it too late to deal with the hangover.

Greece is a country in crisis and America will be soon. Both countries are flirting with fiscal ruin because of reckless government spending.

Much of Greece is expected to grind to a halt, with the country’s trade unions staging another 24-hour general strike against planned austerity measures. There are fears of renewed violence after protests in Athens two weeks ago led to the deaths of three people.

Sarah Palin on Americans bailing out Greek socialists and the Dodd bailout bill.

In a story about Greece getting the first 20 billion of its bailout money, the BBC reveals that a Deputy Tourism Minister Angela Gerekou was dismissed for unpaid taxes. Guess they don’t buy those Geitner excuses over there.

“The euro is doomed,” said Andrew Wilkinson, senior market analyst at Interactive Brokers Group LLC in Greenwich, Connecticut. “It’s like a clown without its makeup. The strains among the partners are becoming clear and it’s becoming harder to see global growth not being threatened by this.”

The €750 billion ($1 trillion) shock-and-awe rescue package to prevent the Greek debt crisis from spreading only bought eurozone countries more time, it didn’t solve their underlying debt problems, German Chancellor Angela Merkel and a European Central Bank official said Sunday.

What we could do to get the economy going and help create jobs is to cut spending. We see the problems going on in Greece and if we don’t get spending under control we are going to have the same problem here.