Sen. Gregg: U.S. May Follow Greece Into a Debt Crisis
By Frank McGuire
Sen. Judd Gregg, R-N.H., says the United States is in danger of being in the same dire situation as Greece in seven years if the nation doesn't slash its debt and control spending.
“We are on a path which will go to where Greece is, there's no question about that, if we don't adjust our present financial house,” Gregg says.
“If we continue to spend much more than we take in," he says. "We'll double our debt in five years and triple it in 10 years and essentially be where Greece is in about seven years,” he said Monday night on the Fox Business Network.
"So we know we are headed in that direction unless we do something about reducing the level of debt and reducing the level of our spending.”
The national debt of Greece is 113 percent of the country’s gross domestic product. The current U.S. debt amounts to roughly 50 percent of the gross domestic product.
Asked when he expects that the U.S. debt situation will reach the crisis level that Greece is currently facing, Gregg said, “we're looking at maybe the outside 10 years, probably closer to seven years before we hit the wall, so to say.”
The Republican senator said that the signs of a crisis are already here – pointing to recent downgraded ratings of U.S. debt.
Asked how Americans will know that the crisis has hit, Gregg responded: “Well, when people stop buying our bonds.”
“Basically, when they tell us that they don't have any confidence in our debt being repaid and they force us to pay a much higher interest rate, something that is unsustainable,” he said.
“They essentially say to those of us in the United States, just trying to sell debt to finance our daily operations of government, we do not believe you can repay the debt or can repay it in a way to make us buy your debt at a reasonable price.”
And I can't help but add that the republican party of the united states is doing nothing and has done nothing about this problem. Both sides of the aisle spend like drunken sailors on leave.
That's all fine until one thinks about how the runaway spending...tax cuts, 2 undeclared wars, medicare D, social programs etc. have been funded and by who. Maybe Pence should just ask the IMF and World Bank to cut us off completely....make us go cold turkey while he's at it. Let us all become feral, fend for ourselves and then readress the issue in a couple of years and let whoever is left standing hammer out a "new way" It would be interesting to see just how the resulting band of surviors would view our sacred Contitution. Again, just where do you think the "money" for all of that deficit spending came from?
And as it is, none of this...or anything anybody can do... about these tangental issues means a thing until we get the workings of the banking and investment business fixed. Sen. Dorgan's ammendment to illegalize naked credit default swaps couldn't get a preliminary vote yesterday. That's teh worse think that has happened in the chambers since the Iraq resolutino. Dnage to near verybody there, both parties, is terrified of taking on high speed electronic trading. People in the business are telling me that when genuine opportunities arise that individual investors and small players can't get their buys and sells in because the electronic triggers automatically get you so far to the back of the line if there suddenl;y becomes a trading opportunity that you are essentially forced to go into funds that MIGHT be able to trade. Who do you think got to buy P & G at $.01 a couple of weeks ago? Not some shoe clerk or other small timer logged on to E-trade.com
We are facing a situation where everybody knows, technically or instinctively, that this thing can't help but come down. Japan is about to implode economically. That may pose a bigger security risk than any little cadre of Pakistaini or Saudi or Yemini kids playing with gas cans and urea. And as it is happening, there are a well positioned global few who see it coming and are using these mechanisms that any regulatory body that was doing their job, as they have not through the past 5 adminstrations, should have recognized as vehicles of legalized theft.
I've lived 61 years in a very diverse political and philosophical environment. That's what the prarie midwest is and have been hearing depression survivors and John Birchers as well as some well educated and experienced people in the world of business arguing over whether or not we are headed for financial ruin, voidance of our currency, facsism, communism, fuedalism, anarchy etc.etc. and that "the Jews" or the "international banking caba"l or the "brown hoard" that were going to overtake "us" would bring us down and into "another Depression". Only to hear the counter argument that "We know better now". "There are safegaurds and mechanism in plce to prevent that" blah blah blah..That knowledge and science and improved modes of communication were going to make it possible to recognize the warning signs an avert that sort of catastrophe. Who'd have known that it was going to be physics and mathematics and unimaginable developments in electronics that were going to be responsible for what had been toputed to be avoidable because of those things........when they were supposed to be the safe gaurd.
I doubt that this genie can be put back into this bottle. We've got a very short window to try to fix it in. And, both bless and **bleep** their souls, Congress is still doing periphrial politics.
No matter who has dug in our hole.... a little or a lot, we have to stop digging....Right Now.
Or that deep hole will end up being our grave site.
It is a lot like that broken oil pipe in the Gulf..... it has to be capped up, or the whole *bleepin'* coastline isn't gonna be worth a tinker's **bleep**.
It ain't so much the hole right now Craig..crazy as that sounds and as deep as it is. ..and has been for a long, long time. This forum is just a place where most people have businesses and who do business accounting are actuely more aware of what it means when short falls are discussed.
2 things are currently at play..the fact that regardless of who's money it is, how it came to be, whatever...is being systematicly stolen. And the fact that a noisy bunch of people are heated up over the fact that the permanent Republican majority that was supposed to have been signaled by the 2000 election didn't hold up...and that this time instead of a Democrat in name only like Clinton begin elected an actual real live Democrat was ,which was never supposed to happen again, threw a bunch of people WHO FOR ALL PRACTICAL PURPOSES, NO OTHER WAY TO SAY IT, HAD BEEN THE DUPED RUSES OF THOSE WHO ARE DOING THE SYSTEMATIC STEALING into a hissy fit and they've found each other. And throw in teh comlicatios of racism and classism to the mix on this Presidnet and you've got a real mess.
PLAYING RIGHT INTO THE HANDS OF THE THEIVES...CREATING A DISTRACTION OR DIVERSION FROM THE VERY, VERY SERIOUS MATTERS THAT ARE DIRECTLY AT HAND AND WHICH WE HAVE VERY, VERY LITTLE TIME TO FIX.
The world isn't going to end, but it is going to be chaning rather presently for a few billions of us on it. As a patriotic American, I can't see how you can't see that it's up to us to lead in response to that fact. All you people want to do, and want your public ifficials to do, is to cower and retreat.
Was driving this morning with the local clasic rock station on and heard Dylan say ".... know what any of it is worth?"
BTW I just saw that more jobs have been created in the U.S. since Feb. of 2009 than were from Feb. 2000 through January 2009. What's that about? More funny math maybe?
I suppose you heard Obamas comments. The folks on the other side drove our economy into the ditch. Did very little to nothing to help mop up the mess, and now they want us to hand over the keys. NO!
Don't suppose forcing banks to make loans they knew could and would never be repaid had anything to do with it do you. I think we better grab the keys before the drunken Obama crashes as into Europe.