Does it seem odd to anyone that whenever there is new bad news about Greece that the financial markets of the world take a serious hit.
Greek debt fears continue to shake world markets
The total economy of Greece is so small compared to the US and the rest of the Eurozone that it makes no sense for world markets to drop by more
than 1% over the debt problems of this little country. The amount of wealth lost in that 1% drop is more than all of Greece is even worth.
The economic jitters can only be explained if you understand that the economies of the world have all been tied together as part of a
mutually assured destruction failsafe that was put in place to prevent countries from going to war and destroying each other the way they
did in the 1940's. The goal was just but they did not forsee the type of economic crisis that has spread worldwide when they envisioned this
Mutually assured destruction is an idea born out of the nuclear deterent. If one country launches nukes against another then everyone launches and
the whole world burns. This idea has prevented widespread war for over 50 years now. Most wars as we know them are more like police actions that
have no winners or losers. Modern wars end in stalemates or just kind of end with no real resolution. Think Vietnam, Afghanistan (US and Russia), Iraq,
The same concept has been applied to our economies. If one economy fails it starts a chain reaction of national failures eventually taking
everyone down. If Greece fails this may push Portugal or Spain over the edge which in turn will spread to Italy. It's a domino effect so
it is imperative to not allow the first domino to fall.
There is a way out though but it involves taking ourselves out of the system essentially moving away from the other dominos to avoid being
taken down when they fall. As these nations begin to fail the wealth of those nations will be looking for somewhere to go. If you are in the
system then you will not be an attractive place to put that wealth as it is only a matter of time before you become the next piece to fall.
The system we need to spit ourselves out of is socialist induced state of massive government debt and entitlements and the world banking system.
If we have the lowest taxes and the most freedom people from all over the world will beging to flock here again bringing with them massive wealth.
We need to be the place were government debt doesn't threaten to crowd out private investment and burden businesses and individuals with crushing
You can see this on display right here in America. Our republic is the great experiment. Each state acts much like a sovereign nation
with its own tax laws and regulation. Look at what is happening in places like California, New York and Michigan. They have the most
social programs and the highest taxes but have seen their economies diminish and their debts become unsustainable. Contrast that with places
like Texas whose economy has grown despite the national downturn. People with money, entreprenuers have been voting with their feet, moving
away from places like California and New York to places like Texas.
This is why states are so enraged by the continuous attempts by the federal government to impose more social welfare at a national level.
If Massachusets wants socialized medicine then they are free to do so but people are also free to leave the state if they disagree. You
cannot remain an American and escape Obamacare. You can escape Romneycare though without leaving the country.
What is happening now though is state and local governments are voting themselves benefits that their tax revenue cannot afford to pay.
People are voting yes to the new benefit but no to the higher taxes. They are able to get away with this because the states are being
subsidized by the federal government to make up these shortfalls. There is no greater example of this than Romneycare in MA. That
system would have been bankrupt years ago if the federal government didn't supply them with money to make up their deficits.
Understand this cleary. The people of Massachusets voted themselves free state provided health insurance but expect federal tax dollars
to pay for it. Like myself in Florida, your federal tax dollars are being spent on state programs outside of the state you live in. This
is taxation without representation. You have no say in whether or not Massachusets has state health insurance but you are being told to
help pay for it. This may explain why MA voters elected a republican Senator who campaigned on voting against Obamacare. They already have
Obamacare in MA, they know it won't work without outside help so who will the federal government go to for a subsidy?
You see the system. The local governments push their problems up to the state who in turn push them up to the feds. Where will the
feds go when they run out of money? They'll try to push this up to the world government that right now is talking about imposing a global
tax on financial firms.
Greece is at this point now. They are begging the other European Union nations to give them low interest loans and are also looking
from money from the IMF(International Monitary Fund). The loans won't solve their problems though. Their gross government debt is now equal
to 115% of the entire annual economic output. There is no way they can ever hope to repay that money.
We have seen this play out before but at the time the roles were reversed. During World War I, the European nations needed to borrow
massive amounts of money to finance the war. The United States financed their debt much the same way that China is now financing our debt.
The United States became a world superpower as a result of the power we gained over the economies of the formerly great British Empire and
other Euro nations. If they wanted our money they needed to play by our rules. Today, we don't speak out against Chinese environmental
policies, their slave child labor and their lack of basic human rights because we can't. If we want their money and cheap products then
we'll do what they say.
April 22 - The Truth, Does it matter?
April 21 - Name that Mob?
April 20 - Why So Quiet?.
April 19 - The Deadbeat Bubble.
April 16 - Oh no you didn't.
April 15 - The Party of Silence.
April 14 - You've got to be kidding me.
April 13 - Where do we go from here
April 12 - Youth of the Nation
April 9 - Turning the Tables
April 8 - New Age of Discrimination
April 7 - Thank You Kind Stranger
April 6 - The Cost of Compassion
April 5 - Happy Days are Here Again
April 2 - Of Course We Can Do a Better Job
April 1 - The New Normal
March 31 - Take a Deep Breath
March 30 - Metaphors and Blinking Lights