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Just Google "Greek riots" to see what "Greece in a few years means". It also means massive austerity (cutting the budget suddenly as well as massive tax increases); Greeks reacted like this.
When you consider that Federal debt is 70% now, and State debt is around 18%, that's a total of 88%.
The problem for our debt, just like with personal/corporate debt, is that the higher the debt, the higher the interest payments. That sets off a negative cycle where increasing amounts are just paid to interest, leading to higher and higher debt.
Indeed, even with Greece's massive spending cuts/tax hikes, their debt to GDP...is set to go UP!
Read here:
"IMF documents show that Greece's public debt will rise to 150pc of GDP after three years, even if the government complies fully. "
There is no escape for Greece.
Given that Obama just added 12.5% to our debt in 2009, and 10% this year (we've increased our debt 22.5% in just 2 years), how long before we spend ourselves to a Greek tragedy?
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