I leave it to the Reader to figure out Why they should read this, other than it is interesting. I would comment that Greece has always failed in the primary of matching equal status with other European powers ever since the origins of history. The basic rationale behind this development was the continued existence of rival City States for sustained period; elsewhere one City established its dominance early over all others, leading to suppression of the regional sentiment which Greece endures. This rivalry led to a Civil War in the Truman era, a military dictatorship scant years after, and creates an impossibility to reduce Government expenditures now; the old resentments immediately reassert themselves upon any reduction of benefits to geographic areas of the country. Greek Nationals still get drunk, and shoot off weapons into the air. They also possess a history of partisan activity for much of the last two hundred years. It is not easy to state that Taxes will increase, while Government benefits are going to disappear.
David Beckworth presents good material on the American debt situation. We are currently dependent on outside resources for finance, and the major question becomes exactly How dependent are we on this outside sourcing. There are two lines of Thought on debt as such: One thinks that a constant debt level is mandatory for a given level of GDP; the Other believes that there are methodologies to reduce debt levels drastically, without incurring a major loss of GDP. I am of the later base. The whole question will become as vital to Americans as it currently is to the Greeks as the debt levels rise. It is all about the creation of Consumption markets through the maintenance of easy finance. The problem arises by the debt taking on a life of its own, where the generation and payment of Interest becomes an industry in itself, and introduces a major Cost into the Production schedule. All the nations discussed by Felix Salmon faced adverse Production Costs due to the arrangement of debt around their capitalization; a position which We are fast approaching, and with no indication that the Demands will even be different for ourselves.
It is now time to examine this article. We have not been keeping the pace of Job creation to fulfill full employment for the last decade. We are actually about 15 million Jobs short of full employment. Another decade of such failure could truly bring great changes for ourselves. The primary area of impact may be the very discussion We are having on debt creation. I have been looking for some effective data on the acceleration of debt per individual upon loss of employment, over the creation of debt under employment. I would believe debt creation would accelerate without a Job, but there is little data I can find on the subject. It is know that at current levels, We could have somewhere around 25 million or greater Unemployed by 2020. It makes the debt acceleration factors more keen under such circumstance, and resolution of debt repayment must be much better planned than We have seen to this point. lgl