...could we be far behind? The scenarios are eerily similar. Greece's' national debt was wildly out of control, due mainly to it's appeasement to national unions. The retirement age in Greece is 54, with guaranteed retirement benefits for life. When the Greece Government tried to reign in the benefits and raise the retirement age, those benefiting from those nanny-state policies rioted! Germany stepped in to ease the tension with a bailout (sound familiar). That didn't save Greece's debt from falling to junk bond status!
Today, the French Government of Nicholas Sarcozy is now at odds with national unions, as they try to raise the retirement age there from 56 to 62! As well as get pension spending under control. All to avoid the fate of Greece. Again, the nanny-state recipients are crying foul, and have went on strike, shutting down the schools, train services and other various government run entities.
Could it happen here? Absolutely! It will be a bit slower though. It will start with individual states. Those leading the way are California, Illinois, Michigan and New York. Their debt is unsustainable and the public sector unions are unwilling to make consseccions to help balance their budgets and relieve the debt! The same scenarios are shaping up all over the country. Once these states can no longer support their debt, they will come to the feds, for yet another....wait for it...BAILOUT! Only this time it won't be federal control of private industry, it will completely demolish state rights as the feds will now own state debt. Paid for by our tax dollars!
Our national debt is also at point of crisis, so we will have to try and borrow even more money from people that don't really like us, to assist in those bailouts.
Paranoid Conspiracy theory? Maybe! But all the signs are there. We have been following the French model for years, they are now reaping what they've sowed. How long before we reach that tipping point?
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