Investors are running scared about what is happening in Greece and what threatens Spain and other countries. The IMF is already bailing out Greece but in order to do so, Greece has had to start acting fiscally responsibly and that, the Greek government has voted to do. But what you're witnessing on TV (such as the rioters who burned up a bank burning up in the process three employees still in it) is what happens when a government tells it's people that they're going to have to relinquish some of their entitlements in order to allow the country to get back its financial footing. Now, I hope folks will begin to comprehend what can happen when entitlements run rampant and then the well runs dry. Familiar with that famous book, 1984
by George Orwell? Hate to tell you sports fans, but the majority of that happened long before 1984 got here and has only grown exponentially since. Remember, Big Brother knows best.
BTW, I think it interesting that the United States contributes more financially to the IMF than the United Kingdom, France and China combined. We contribute several times what China contributes (you know, that country that everyone is touting as the new economic powerhouse).
Not only is Greece broke, but so is Spain, the UK, France, Germany and yes, we too are broke just to mention a few nations. Truth be told, just about everybody's broke!
That's generally what happens when an entity pays out more than they take in. Isn't that the primary cause of bankruptcy? Of course governments don't worry about good fiscal responsibility 'cause they just crank up the presses and print out more money. That cures everything doesn't it? Uhhh..... what do you mean when you say inflation?
In times such as these, common sense dictates that one facing such a situation must "draw in their horns" and make significant cutbacks, including entitlements. But again, just look at what is occurring in Greece and that will give you a good idea of what can happen when you do get back around to trying to get back on sound financial footing. In short, the pain is acceptable, just so long as it's the other guy whose feeling it.
How then, if you can't solve the situation that way, what else can be done? Break out your wallets sports fans and get used to the initials, VAT for Value Added Tax (oh, and in this country, not instead
of the Income Tax but rather in addition to
the income tax).
But wait a minute, doesn't a VAT hit the poor the hardest? Yeah but that's tough, gotta' get the money, right? But don't worry, we'll just blame everything on those rich folks who own all the stock. By George, we'll get rid of these rich Capitalists.
One problem though, a huge amount of stock (probably the overwhelming number of shares) in this country is in fact, indirectly owned by the middle class and lower middle class workers. What? Yep, it's true. That stock is controlled by organizations that provide the retirement money for millions and millions of American workers.
Okay, now that we've solve the problem with a huge new VAT, let's get back to work and get those presses at the Bureau of Printing and Engraving rolling; we've got another Trillion or two to spend this year.