Tuesday, August 2, 2011

Business Fmr. Head of Gov’t Accountability Office: U.S. Less Than 3 Years Away From Being Greece


We are finding out that our economy is much worse then we thought it was---HOPE AND CHANGE---Everything is pointing to our economy getting much worse over the next few years. We have a choice to make we could do what Canada did and spend less with a conservative government or keep spending more like Greece did. Canada is doing great right now by following the conservative spend less plan. Greece on the other hand is dragging the rest of Europe down the drain.
This is what the former comptroller general — which heads the Government Accountability Office had some unsettling words regarding U.S. debt and the recent debt debate. According to him, the U.S. is on its way to becoming like Greece, whose debt problems have plummeted that country into economic hell.
“We are less than three years away from where Greece had its debt crisis as to where they were from debt to GDP,” David Walker told CNBC.
“We are not exempt from a debt crisis,” he added. “We’re never going to default, because we can print money. At the same point in time, we have serious interest rate risk, we have serious currency risk, we have serious inflation risk over time. If it happens, it will be sudden and it will be very painful.”
He also pointed out that credit agencies downgrading the U.S. are reactionary, meaning by the time one comes the damage may already be done.
CNBC has more from the interview:
As the ratio of its debt to gross national product eclipsed 100 percent and surged toward 150 percent, Greece has twice in the last two years nearly defaulted on its debt. Only successive bailout packages from the European Union and International Monetary Fund prevented catastrophe.
When tolling up all the US debts, including huge unfunded liabilities to Social Security and Medicare, the US is on dangerous ground, Walker said in a CNBC interview.
The US is nearing the 100 percent threshold which historically shaves about one percentage point off GDP, which was just 1.3 percent for the second quarter and 0.4 percent for the first quarter.
With the recent increase in the debt ceiling and continued higher budget deficits at the federal level, the US is on course for its own crisis, Walker said.
But that’s just the beginning. Just wait until you hear him put the new debt deal numbers into perspective (hint: it barely shaves any money off the country’s unfunded liabilities):
Click here to find out more!
We are heading for hard times either way. But if we go the way of Canada it will all be worth it. We all know what spending like idiots does to the countries that have done it in history. If we don't get Obama out of office, then Greece it is.


  1. The Stock market is tanking and gold is at an all time high. We are only seeing the tip of the iceburg with the economic bad news. The Democrats want to keep spending and adding to our debt and our debt is sinking us. The economic news keeps getting worse and the Tea Party called it all. It is obvious that these people are trying to destroy our economy because no one is as stupid as they act.

  2. Aside from partisan generalizations can you actually explain what is happening and why?

    You do know that a majority of both Keynesian and Chicago school economists predict that cutting spending will damage our economy? In terms even you can understand, that means the Tea Party is wrong. Austerity measures were the wrong thing to do.

  3. Joe if Canada cuts spending and they do better as an economy, while Japan,Greece,Venizala,America...have all poored money into their economies and their economies all failed what more proof do you need? Does the fact the our debt from spending is making the investors afraid of investing in America proof enough? Is the fact that our economy is doing exactly what we conservatives said it would do proof enough? How dence do you have to be to not see what is right in front of you? Can you name one country that has spent it's way our of a recession worked? Austerity is working real good in Canada. Our money is now worthless now. It used to be the other way around not that long ago.The people that know better are getting out of the stock market.Stocks sold off sharply to end at session lows Tuesday with the Dow down for an eighth day amid economic worries and even after President Obama signed a bill to avoid a debt default.

    The Dow Jones Industrial Average plunged 265.87 points, or 2.19 percent, to end below the psychologically-important 12,000 mark at 11,866.62. The last time the blue-chip index declined for eight-consecutive days was in October 2008.

    President Barack Obama’s job approval ratings hit all-time lows last week among self-described Independents, moderates and conservative Democrats, according to the Gallup poll. So Joe it's not just the stock market and the economy that can't stand Obama's liberal policies. Americans all realize what you choose to ignore. His policies made everything worse, not better like he thought it would. Just because you keep denighing the 800lb gorrilla in the room doesn't mean he isn't in the room. All it means is that you liberals are all crazy for closing your eyes rather then say you are wrong. Since both houses of congress was controled by a huge margen by Democrats for 4 1/2 years and Obama in the WH for the past 3 1/2 it's hard to blame the Republicans for making things worse. But like all immature children you find a way to blame someone else. It must have been the drugs?

  4. Joe how is this for destroying jobs? If they take away our energy how can we create jobs? We can't and the Democratic Party knows it. HOPE and CHANGE.

    Detroit News

    An especially stormy summer gives us a taste of what life would be like if the electric umbilical cord attached to the side of our homes were to run dry.

    Silent air conditioners and refrigerators full of spoiling food is the shared experience in countless neighborhoods hit by weather related power outages.

    A generous generating reserve in the state kept the power interruptions fewer than they might have been. Despite an unrelenting heat wave, no blackouts occurred because of shortages in electricity supplies, says Steve Kurmas, president and chief operating officer of Detroit Edison, a DTE Energy subsidiary.

    DTE has a production capacity that exceeds normal demand by 26 percent, and is more than twice the standard 12 percent reserve, Kurmas says. That's largely because the recession wiped out so many customers in this region. So when demand peaks, DTE can ramp up production to cover the load, even on hottest days.
    That's the situation today. Four years from now, who knows?

    Between now and then, DTE will have to shutter 10 coal-burning units, reducing capacity by 20 percent to meet new Environmental Protection Agency regulations on coal plants.

    Updating the plants to comply with the new EPA standards in the three-year period allowed would be massively expensive. So DTE will take them off line.

  5. joe only has theory. chris has cause and effect and reality.

  6. You are spot on Anon. All they have are theories.


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