Greece, that is.
Is Greece a model for the United States on how NOT to run an economy?
Greece is part of the European Union, as in "euros". Those countries are not supposed to have over a 3% deficit. Greece currently has a deficit of 12.7 %. Compare this to the United States' deficit of 10%.
Greece is part of the European Union, as in "euros". Those countries are not supposed to have over a 3% deficit. Greece currently has a deficit of 12.7 %. Compare this to the United States' deficit of 10%.
Greece has been on a spending spree--it has doubled the wages of government employees. Compare this to the wages in the US of our federal workers: Average salaries for civilian workers in the US government are double those of the private sector.
What worries the other countries in European Union is that Greece will default on its debts. Greece doesn't have a very good "credit rating".
The White House insists that the US has no problem with its "credit rating"--touting the US as the "most creditworthy country in the world".
Yet there have been rumors that China may call our loans, so to speak, and not necessarily for economic reasons: http://www.reuters.com/article/idUSTRE6183KG20100209
http://www.businessweek.com/news/2010-02-16/foreign-demand-for-u-s-financial-assets-slowed-in-december.html As China is selling off US treasury bonds, we may no longer be able to finance our excessive government spending this way.
So what will happen to our credit rating then?
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