Greece headed into 'out of control bankruptcy'
May 15, 2012 1:08:02 GMT -5
Post by PrisonerOfHope on May 15, 2012 1:08:02 GMT -5
Greece headed into 'out of control bankruptcy' - govt. salaries and pensions soon to go unpaid
Sunday, May 13, 2012
by Mike Adams, the Health Ranger
Editor of NaturalNews.com (See all articles...)
(NaturalNews) The financial crisis in Greece is reaching an explosive tipping point, with the youth unemployment rate now exceeding a startling 50 percent and the government itself announcing it will be forced to stop paying salaries and pensions by June:
"We will be in wild bankruptcy, out-of-control bankruptcy," said Theodoros Pangalos, the deputy prime minister of Greece. "The state will not be able to pay salaries and pensions. We have got until June before we run out of money." (http://www.telegraph.co.uk/finance/financialcrisis/9262068/Greece-wil...)
The prime minister is further concerned his country could collapse into fascism. "You know how it happened in Germany -- it started with the Jews, then the Communists, then everybody -- it could happen here."
The problem is that, like most of the western world, Greece has been living on borrowed capital for decades. The left-leaning social programs, government handouts, bloated salaries of outrageously corrupt government officials and failed economic policies have thrust Greece into economic despair. And unlike the USA, Greece cannot simply print its way out of its debt crisis. So it is headed into an era of what can only be called a financial implosion that may ultimately lead to mass rioting, social unrest and potentially even revolution.
California follows in the footsteps of Greece
Back in the USA, the state of California is accelerating toward much the same outcome. Suffocated by the terminal financial burden of leftist social programs, welfare handouts, runaway social services and health care costs for its millions of undocumented residents, California is also headed for its own financial implosion.
"We are now facing a $16 billion hole, not the $9 billion we thought in January," said Gov. Jerry Brown in a recent New York Times article. "This means we will have to go much further and make cuts far greater than I asked for at the beginning of the year." (http://www.nytimes.com/2012/05/13/us/huge-new-shortfall-predicted-in-...)
It also means that under the lackluster leadership of Gov. Brown, California's dire financial situation has only grown far worse.
His proposed solution is proof that Gov. Brown earns an "F" in economics 101. He wishes to impose an "income tax surcharge" on so-called "wealthy Californians," which sooner or later will come to mean just about anyone working for a living. This foolish taxation policy will, of course, only have the unintended effect of causing wealthy business owners to flee California and take all the decent-paying jobs with them. This, in turn, will leave California saddled with a rising population of unemployed workers and a shrinking population of wealthy business innovators who account for 90 percent of the real job creation in California.
The result of all this, not surprisingly, will be a downward spiral of compounding debt and the eventual fall of California's infrastructure into third-world status. Many of the roads in Los Angeles have already achieved this level of disrepair, by the way.
Such is the devastation of socialist economic policies. By worshipping Big Government and the false hope of a perpetual free lunch, the people of both California and Greece have put themselves on an irreversible course into the painful brick wall of financial wipeout.
Greece will fall first, of course, but California's financial collapse won't be far behind. No state or nation that abandons the principles of economic freedom, small business innovation and private sector job creation has any real economic future, after all. Government-directed socialist economic policies always fail sooner or later. For a nation, any divergence from the path of liberty, economic freedom and small government inevitably and predictably leads to collapse.
Learn more: www.naturalnews.com/035858_Greece_bankruptcy_California.html#ixzz1uuqR4fOs
Sunday, May 13, 2012
by Mike Adams, the Health Ranger
Editor of NaturalNews.com (See all articles...)
(NaturalNews) The financial crisis in Greece is reaching an explosive tipping point, with the youth unemployment rate now exceeding a startling 50 percent and the government itself announcing it will be forced to stop paying salaries and pensions by June:
"We will be in wild bankruptcy, out-of-control bankruptcy," said Theodoros Pangalos, the deputy prime minister of Greece. "The state will not be able to pay salaries and pensions. We have got until June before we run out of money." (http://www.telegraph.co.uk/finance/financialcrisis/9262068/Greece-wil...)
The prime minister is further concerned his country could collapse into fascism. "You know how it happened in Germany -- it started with the Jews, then the Communists, then everybody -- it could happen here."
The problem is that, like most of the western world, Greece has been living on borrowed capital for decades. The left-leaning social programs, government handouts, bloated salaries of outrageously corrupt government officials and failed economic policies have thrust Greece into economic despair. And unlike the USA, Greece cannot simply print its way out of its debt crisis. So it is headed into an era of what can only be called a financial implosion that may ultimately lead to mass rioting, social unrest and potentially even revolution.
California follows in the footsteps of Greece
Back in the USA, the state of California is accelerating toward much the same outcome. Suffocated by the terminal financial burden of leftist social programs, welfare handouts, runaway social services and health care costs for its millions of undocumented residents, California is also headed for its own financial implosion.
"We are now facing a $16 billion hole, not the $9 billion we thought in January," said Gov. Jerry Brown in a recent New York Times article. "This means we will have to go much further and make cuts far greater than I asked for at the beginning of the year." (http://www.nytimes.com/2012/05/13/us/huge-new-shortfall-predicted-in-...)
It also means that under the lackluster leadership of Gov. Brown, California's dire financial situation has only grown far worse.
His proposed solution is proof that Gov. Brown earns an "F" in economics 101. He wishes to impose an "income tax surcharge" on so-called "wealthy Californians," which sooner or later will come to mean just about anyone working for a living. This foolish taxation policy will, of course, only have the unintended effect of causing wealthy business owners to flee California and take all the decent-paying jobs with them. This, in turn, will leave California saddled with a rising population of unemployed workers and a shrinking population of wealthy business innovators who account for 90 percent of the real job creation in California.
The result of all this, not surprisingly, will be a downward spiral of compounding debt and the eventual fall of California's infrastructure into third-world status. Many of the roads in Los Angeles have already achieved this level of disrepair, by the way.
Such is the devastation of socialist economic policies. By worshipping Big Government and the false hope of a perpetual free lunch, the people of both California and Greece have put themselves on an irreversible course into the painful brick wall of financial wipeout.
Greece will fall first, of course, but California's financial collapse won't be far behind. No state or nation that abandons the principles of economic freedom, small business innovation and private sector job creation has any real economic future, after all. Government-directed socialist economic policies always fail sooner or later. For a nation, any divergence from the path of liberty, economic freedom and small government inevitably and predictably leads to collapse.
Learn more: www.naturalnews.com/035858_Greece_bankruptcy_California.html#ixzz1uuqR4fOs