For years now, the Euro zone has been experiencing difficulty absorbing the costs of bailing out relatively small countries with relatively small economies that have relatively small amounts of debt.
Most recently, Euro zone leaders agreed to fund a bailout of Cyprus with a deal that includes taxing private bank deposits. The deal to fund 10 billion euros worth of rescue loans for Cyprus imposes a 6.75 to 9.9 percent tax on those with cash in Cyprus banks. Without the EU bailout Cyprus cannot avoid default, but the unexpected and unprecedented decision to take money from private depositors fueled a sense of crisis across the euro zone and led to a run on Cyprus banks by depositors.
The Cyprus deal could lead savers in similarly indebted countries like Greece, Italy and Spain to withdraw money from their banks, leading to a regional economic crisis that would affect bond and stock markets world-wide.
Imagine the difficulty faced by the world’s economy when the United States of America can no longer finance its debt.
It can happen here.
Greece recorded a government debt to GDP of 170.60 percent in 2011. In 2011, the United States government debt to GDP ratio was about 100 percent. Should the United States continue deficit spending at current rates, the United States will soon surpass Greece in debt to GDP ratio.
What the United States government must do is stop spending money it does not have.
Before that will happen, American taxpaying voters must be made aware of the realities of the situation.
For so long as American taxpayers are unaware of the danger that looms just over the horizon, their concern will be focused on maintaining current levels of government payouts for Social Security, Medicare and Medicaid. Until American voters understand that not restructuring big government socialist programs will bankrupt the U.S., they will not vote for the necessary revisions. They will continue to vote for the status quo.
The truth about the danger American debt poses to the U.S. economy is not being disclosed by “progressives;” be they politicians, media pundits, college professors, Hollywood producers or government bureaucrats…including but not limited to winners of the Nobel Prize for economics.
It does not take a Nobel Prize winner to see that whole sections of the European economy have governments whose budgets are in horrible shape and teetering on the brink of true insolvency. It does not take a genius IQ to realize that the cause of debt in those countries is big government spending money it does not have on socialist programs to support citizens dependent upon government for their existence.
It also does not take a Nobel Prize winner or a genius IQ to find information that makes it past the “progressive” filter NBC, ABC, CBS, CNN, The New York Times, The Huffington Post, The Los Angeles Times, Time Magazine, Newsweek and the rest of the “progressive” Party Pravda use to misinform the American public.
All it takes is a desire to learn the truth and a willingness to search beyond the filtered information used by “progressives” to nudge people into believing what “progressives” wish them to believe.
The last time America faced an existential threat during WWII, Americans fought and died by the thousands on foreign lands.
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