Pittsburgh, Pennsylvania – June 22, 2011 –Greece is doing things. We have a model to observe. Obama's meeting with Merkel proves that Obama is aware of Greece's predicament.
Here's some things happening in Greece:
Greece's austerity measures The specific cuts are listed.
- Pay cuts
- Tax Reform
Greece is a beggar:
They have borrowed until they are having trouble finding new loans. New loans demand higher interest rates. They have borrowed to get extravagant vacations. They can't afford the pensions that they have negotiated. Taxes are a problem. The government is too big for the private sector to pay for, so now it has to be shrunk.
The United States:
They have borrowed until they are having trouble finding new loans. So, they started printing money; QE 1 and QE 2. Hyperinflation, a wheel borrow of money to buy a loaf of bread, could result. Fear of that risk, has dimmed the prospects of QE 3. There's a risk of higher interest rates; on the national debt. They have borrowed to pay for extravagant entitlements; like Medicare, Medicaid, and Social Security. Social Security is not linked to average life expectancy. The Federal government is bloated. Fannie Mae and Freddie Mac are unnecessary, and should be privatized. Both Democrats and Republicans agree to scrap Fannie and Freddie, but there is little if any action. Health care should be privatized; government should be shrunk. The number of people on the public payroll should be reduced.
The future can be controlled.