Wednesday, June 29, 2011

Look to Greece to see what's in store for us

Legislatures in Greece have approved a massive austerity plan for the financially troubled country, as expected, paving the way for more international financial assistance. U.S. stock futures, already higher before the vote, rose further in response. The Greek Parliament has voted in favor of the austerity bill.

This video does a good job of explaining exactly what the implications of this vote are. I feel absolutely horrible for these people, and if I were there, I'd be one of the tens of thousands rioting in the streets too. Unfortunately, there are many parallels between what's going on in Greece and what's going on here, and it's easy to see how our own "austerity measures" (raiding pensions, firing employees, cutting social services and environmental programs, selling public infrastructure and capital, etc) compares. When you take into consideration the spiraling cost of interest on our debt, it becomes even clearer how we could follow a very similar path.

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