Emporer Has No Clothes
I recently shot a video segment for a national online news outlet in which we discussed the debt burden of the United States and possible solutions. The host of the segment was rather young and kept firmly stating that the United States was no where near Greece when it came to the debt crisis in relative terms. “We are at least a decade away from any problems,” she stated with authority in her voice.
Let’s look at the facts. Greek debt is at 165% of their economic output and they are scheduled to bring that number down to 120% by the year 2020 through austerity measures. (whether or not this is possible remains to be seen)
The United States debt as of June of this year was at 103% of GDP. We are looking at $trillion+ deficits for the next ten years at least under current spending levels.
It seems to me we will surpass Greece very soon. A decade seems optimistic.
That is the big elephant in the room.