I have said many times that the United States is not like Greece (despite the often misguided comparisons) because we have the power at our fingertips to fix our problems, whereas Greece doesn't, due to the fact that it is no longer a currency issuer.
However, we face the same social unrest that is now breaking out on the streets of Greece if we don't act to restore economic demand and create jobs.
My guess is that we won't do what is necessary and as more and more Americans become desperate you will see protests, sometimes violent, rising crime rates and the situation will become ugly very quickly.
Remember: there is ultimately no difference between someone who CAN'T do something and someone who WON'T do something...
ReplyDeleteExcept, in some cases, righteousness.
ReplyDeleteOK - Here we have a REAL TIME case study panning out for Norman and Mosler's reasoning :
ReplyDeleteGreece - I bet they rolled up tons of debt during 2004 for the ramp up to the Athens Olympics.
The price of olive oil skyrocketed at this time, almost tripled.
They cannot sell their olive oil now to get out of debt because there is no demand even with lower prices.
Germans are the perfect misers, so much more even than Scottish proverbial stereotypes.
If Germany does not stimulate the economy with massive spending, then the Euro is going to go back to it's toddler days, and the drag the price of oil with it.
Euros / Germans are going to push Obama to do the spending for them ?
Would it actually make more sense now to include Turkey into the European union or would that add another apple which hides it's worms ?
Goog,
ReplyDeleteRight again.....There are some recent articles out there that show how Stimulus spending for wind generator systems is going to european cos. as they are the leaders in this industry....so Obama is helping the European exporters in this reagard!