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  • Can U.S. Avoid Greek Disaster if Washington is Asleep at the Wheel?

    Greece’s recent escapades in economic disaster are a sobering example to the United States of the consequences of allowing government spending to far exceed revenue.  But though Americans’ concern regarding the financial outlook of the federal government grows, those with the power to act something seem largely unaffected.

    The International Monetary Fund (IMF) recently released a report that the United States’ debt could surpass 100 percent of Gross Domestic Product (GDP) as early as 2015.  According to the Hill, “The IMF predicts that the U.S. would need to reduce its structural deficit by the equivalent of 12% of GDP, a much larger portion than any other country analyzed except Japan. Greece, in the midst of a financial crisis, needs to reduce its structural deficit by just 9% of GDP, according to the IMF’s analysis.”

    As depicted in Heritage’s 2010 Federal Budget Chart Book, the national debt is on its way to unprecedented and unsustainable new levels.  The Congressional Budget Office predicts that the budget deficit in 2010 will be 10.3 percent of GDP—the historical national average is 2.9 percent.  The end of the recession will mean increased revenues and deficit reductions, but it is nevertheless on track to climb dramatically in future years.

    These numbers prove that it’s time to get serious about government spending, and the recent case in Greece serves as the supporting evidence.  However, lawmakers didn’t seem to get the memo.  Writes Robert Samuelson in the Washington Post, “The lack of seriousness is defined by three missing words: “balance the budget.”

    In fact, for the first time since 1974, the House of Representatives failed to even create a budget this year, a bold and reckless move that throws fiscal responsibility to the curb.  Instead, all expectations of reversing the poor fiscal outlook have been placed with the President’s Deficit Commission, which isn’t even expected to find a way to balance the budget.  Instead, they have been charged to “stabilize the debt-to-GDP ratio at an acceptable level.”  According to Samuelson, this is “…the language of “experts”, employed to deaden debate and convince people that “something is being done” when little, or nothing, is being done.”

    The Commission’s weak objectives and the fact that its proposals will carry little weight, will be delivered after the election and if Congress considers them at all it, would be in a lame duck session, make this a weak approach at best to reversing the government’s deficit spending problem.  Moreover, the Commission will exclude interest payments from its considerations, real spending that rivals spending on government programs and will climb to $768.2 billion by 2020.  A serious proposal would not disregard this serious expenditure.

    Writes Samuelson, “The message from Europe is that this ultimately fails.  Intellectually elegant evasions are still evasions.”   Samuelson claims both increases in taxes and decreases in spending are necessary to balance the budget–However, new taxes would have deleterious effects on the growth of the U.S. economy, likely without even producing expected revenues.  Controlling deficits should thus focus on reducing reckless spending. It’s time for Washington to wake up and get real about seeking solutions to the nation’s pending fiscal crisis.

    Posted in Economics [slideshow_deploy]

    9 Responses to Can U.S. Avoid Greek Disaster if Washington is Asleep at the Wheel?

    1. Pingback: Morning Buzz 05/18/10 | Daily Buzz Factor

    2. Lloyd Scallan - New says:

      Does ANYONE get it yet? Washington is not "asleep". They are fully awake and

      know exactly what they are doing under the leadership of Obama. It's disheatening to see that so many Americans are continuing to be fooled by

      thinking that this is all because of "incompetence, inexperience, or sleeping".

      People, this is a deliberate attack on our economical system to allow Obama

      to come riding to the rescue with his socialist system. This "Deficit Commission"

      is nothing more than a cover to protect Obama and to continue the farce that Obama is actually doing something "good" for this country.It's all lies and deception.

    3. Tim AZ says:

      The question is. Can the American people Stop Mao-Bama from collapsing our capitalist system in the next election. Sadly it's far too close to call. It doesn't seem likely that Congress would have enough opposing members to override Moa-Bama's veto's during the remainder of his occupation of the white House. It now looks like it will be a wait and see strategy on both the Mao-Bama regime hoping they have inflicted enough damage to force the collapse our Capitalist system. And the Amercan citizens hoping that isolating the Mao-Bama regime will be enough to avoid the collapse and the socialist utopia that the Mao-Bama regime will certainly attempt to install in place of the capitalist system they successfully collapsed. The stakes are extremely high. Then again this is the country that was formed through divine providence. This likely will be the determining factor of the outcome of America's future. Thy will be done.

    4. Drew Page, IL says:

      Obama and his Democrat cast of characters are drunk with power. The "sobering example" you suggest Greece should be to this administration is wasted effort. Drunks aren't interested in "sobering examples", they just want more booze.

    5. fresno ca says:

      ;;;I Was In GREECE Last January;; The Rioting Was Going On At That Time;;;GREECE Would NOT ACCEPT The UNITED STATES FEDERAL RESERVE NOTE;;AKA American PROMISSORY NOTES;;Only EUROS;;This Past October GREECE VOTED In SOCIALISM;;;AMERICA;;;;Are YOU READY For A REPEAT Of GREECE;;NO-BOMBA's ONE WORLD ORDER;;?

    6. fresno ca says:

      When A SENATOR,;; PRESIDENT,;;; CONGRESS;;;,JUDGES; Take Their RESPECTIVE OATHS & SWEAR To ;;GOD:: To UPHOLD & DEFEND The CONSTITUTION Of AMERICA AGAINST;;;;{ALL}::::ENEMYS FOREIGN This MEANS EVEN WITHIN OUR OWN GOVERMENT;;ie;;{DOMESTIC}:: The SAME OATH MYSELF & My Fellow Military Brother's & Sisters TOOK To DEFEND These Same POLITICIANS LIFE's ,AGAINST {ALL} ENEMYS,, To DEFEND The,FREEDOMS & CONSTITUTION; They Have NOW Sworn To Protect & DEFEND AMERICAS FREEDOMS & CONSTITUTION AGAINST { ALL } ENEMYS EVEN AT The RISK OF DEATH;;Whats Wrong ??WHAT HAPPENED;;WHY DONT Said MEMBERS Of Our GOVERMENT ::{;;LIVE UP To Their SWORN OATHS::}

    7. fresno ca says:

      ;;STAND UP AMERICA:::SPEAK OUT<> AGAINST {TYRANNY} The OVERTHROW OF AMERICA & OUR GOVERMENT & Way Of LIFE;;If We Do NOT STAND & FIGHT TOGETHER;;;;;>>NOW<<:::: SURLY We Will FAIL & FALL SEPARATELY;;;Carl t NELSON.

    8. L.A.ISUFI says:

      Gentleman. CONFIDENTIAL. 5/18/2010

      The only way the U.S can avoid from becoming another Greece is to control the Wall Street and start cleaning it up.

      Today Blood Street is nothing more then a colony of the Jews, a milking cow for them where the blood and the sweat of the American working man and woman is being drunk every single day.

      The Anglo/Saxons must take back America from the blood suckers of the Universe.

      When 15 million households go bust,and their property owners are chased out of their homes, sleep in the parks,seen it with my own eyes ,where over 20 percent of the working class, not 9.9 percent as they lie to us, are out of work things then are very wrong.

      Executing thousands of those blood suckers,bankers, Wall Street terrorists, financial advisers , real estate brokers and many others involved in illegal financial activities must not be a big problem for POLITICAL LEADERS OF OUR COUNTRY.

      We are already like Greece ,perhaps even worse. The robbers of Wall Street must never be allowed to milk us like cows,as they are doing.

      Why not have quotas regulating Wall Street according to religion and nationality.

      If there are only 5 million Jews in the country as they claim, why are there 14 U.S Senators and 43-44 Congressman ?

      Why is Wall Street is 98/00 dominated by the International Zionist Terrorists and nothing can be done to correct that.

      We as Americans are already the Slaves of the Zionists like it or not .Yes, Slaves, modern slaves.

      Get rid of the Wall Street ZIONIST FILTH, BRING THE DEATH PENALTY TO FINANCIAL INSTITUTIONS, WE ARE OVER 300 MILLION PEOPLE WHAT IS 1-3 MILLION LESS FILTH. NOTHING.

      AMERICA NEEDS TO BE CLEANSED FROM TOP TO BOTTOM ,IN 25 YEARS WE WILL SPEAK SPANISH, FINITO THE ENGLISH LANGUAGE,PROTESTANT TRADITIONS, HONESTY AND CHRISTIANITY .

      DOES ANY ONE KNOW WHERE THE MULE IS TAKING OUR NATIONS,? WHERE ARE WE GOING .WHAT HAS HAPPENED TO OUR COUNTRY.

      WE ARE LIVING WITH OTHERS PEOPLE MONEY,SAME AS GREECE.DAY DREAMING,WALKING ON THE WATER AND IN THE AIR . CAN NOT BE DONE, BUT WE ARE DOING IT .

      OUR COUNTRY NEEDS A GENERAL TRANSFORMATION ,WITH GOD AS A GUIDE, NOT ZIONISM AND ISRAEL,BUT WITH CHRIST OUR LORD.

      WHAT IS THIS FILTH CALLED HOMO- MARRIAGE- LESBIAN MARRIAGE ,HOMO BISHOPS, LESBIAN BISHOPS, PORNO HERE AND PORNO EVERY WHERE ..

      DOES NOT ANY ONE SEE WHERE WE ARE,HOW LOW WE HAVE GONE .

      WE LIKE IT OR NOT, SOME DAY WE WILL HAVE TO DECIDE TO IMPLEMENT RADICAL TRANSFORMATION AND SAVE THE UNION AND THE FAITH OF CHRIST, OR WE WILL PERISH AS ON WORTHY PEOPLE OF CHRIST FROM THIS EARTH.

      WE HAVE CLOSE TO 25 MILLION ILLEGAL IMMIGRANTS , GET THEM ALL OUT,OUT ,OUT.

      BUT THE RABBITS OF WASHINGTON WITH NANCY PELOSI AT THEIR HEAD WILL NEVER WANT THAT,BUT SHE IS NOT ALONE.

      TERRORISM IS MAN MADE, BE CAREFUL OF WHAT IS PRESENTED AS ISLAMIC TERRORISM, AND WHAT IS FABRICATED AS SUCH.

      OVER 95/00 OF INTERNATIONAL TERRORISM TODAY IN THE WORLD IS FABRICATED IN ISRAEL THEN DISPERSED ALL OVER THE WORLD AS ISLAMIC ONE..

      YES, YOU ARE THINKING ABOUT N.Y AND DETROIT, FORGET ABOUT THEM. FIRE CRACKERS ARE ONLY FIRE CRACKERS, DUDS TO MAKE US BELIEVE THAT WE ARE UNDER TERRORIST ATTACKS FROM ALL OVER.

      TRUE,WE ARE UNDER TERRORIST ATTACKS FROM ALL OVER, BUT ONLY FROM FINANCIAL ZIONIST TERRORISTS ATTACKS.

      IT IS HERE THAT WE MUST PUT ALL OUR EFFORTS TO DESTROY THOSE BLOOD SUCKERS OF OUR NATION..

      ZIONISM IS WAS, AND WILL BE OUR ENEMY NUMBER ONE,NOT THOSE IGNORANT MOSLEM STATES OR PEOPLES AS WE ARE MAKE TO BELIEVE..

      OUR SUPREME COURT IS BEING TAKEN OVER BY ZIONIST ALSO. ARE THERE NO GOOD CHRISTIANS TO TAKE THOSE PLACES ANY MORE?

      END.

      BE WELL .

      L.A. ISUFI 201- 673-1169 http://www.luanisuficonsultant.com

    9. Norma from Nebraska says:

      What is obvious to many of us is that the grassroots of American life are going to make a major impact in the elections in November. But before we can do much to stop the downward spiral of our government, they are still in power and marching forward. After all, November is still five months away!

      The powers that be in Washington are very aware of the public outrage so they didn't even bother submitting a budget for the upcoming year . . . . because they don't CARE how much money they spend. They are using every crisis, minor or major, to make excuses for pushing the takeover of every conceivable area of our lives: the economy, health care, energy, banking, manufacturing, land ownership, food production, transportation . . . every area that impacts our lives on a daily basis.

      This well-oiled machine has been in high gear from day one, and they have absolutely no intention of slowing down for any reason, not even money. It is hard to believe that these same people will have to live in this country after they destroy it. One has to wonder if they have considered the fact that their descendants will also reap what they are now sowing. I guess they believe that they are leveraging themselves above the devastation and will be able to stay there until the one-world government is in place where they can their places in the hierarchy!

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