For anyone not familiar, Greece has a huge economic and financial problem. You can read more HERE. They are having protests, riots and just general civil unrest. Most countries have quit lending them money so their economy, based on overspending, is on the brink of collapse. They may have to do, what is for a country, the equivilent of filing bankruptcy. They are predicted t be in a severe recession / depression for years to come.
Why the comparison to the United States? Greece's debt, as a percetage of GDP, is over 100. I have seen it stated as between 108 - 120%.
The CBO recently reported that Obama's 2011 budget will generate $1 trillion dollar a year deficits and this will result in a 90% debt as a percetage of GDP. That is awful close to the point where Greece is now. Especially considering that these estimates are historically low on the spending side and economic growth tends to stall when debt ratios get that high. It also doesn't mention if health care and/or social security is figured in.
The bottom line is we need to revamp our economic policy and fast. This whole concept that we will just keep spending is dangerous. Now while things are on a downturn is a good time to start rolling back spending as things get better and increase. Without a change we can be looking at the same situation as Greece in a decade or less.
