Greece is unfortunately not unique in its irresponsible spending
habits. Greek-style debt explosions are quickly spreading to other nations one
by one, and yes, the United States is one of the dominoes on down the line.
Time and again it has been proven that the Keynesian system of big
government and fiat paper money are abject failures in the long run. However,
the nature of government is to ignore reality when there is an avenue that
allows growth in power and control. Thus, most politicians and economists will
ignore the long-term damage of Keynesianism in the early stage of a bubble when
there is the illusion of prosperity, suggesting that the basic laws of economics
had been repealed.
In fact, one way to tell if a bubble is about to burst is if
economists start talking about how the government and the Central Bank have
repealed the business cycle.
The truth is the laws of economics are constant and real, no matter
how inconvenient they might be to politicians and bankers. This reality is
setting in and the bills are coming due.
In the mean time, countries that have no money have bailed out other
countries that have no money, except for the phony money created by politicians,
bureaucrats, and their partners-in-crime at the central banks.
This may be preventing big well-connected banks from having to take
on massive losses, but it is all at the expense of the taxpaying citizen.