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This Is What An Economic Depression Looks Like In The 21st Century

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Do you want to see what a 21st century economic depression looks like?  Just look at Greece.  Once upon a time, the Greek economy was thriving, the Greek government was borrowing money like there was no tomorrow and Greek citizens were thoroughly enjoying the bubble of false prosperity that all that debt created.  Those that warned that Greece was headed for a financial collapse were laughed at and were called “doom and gloomers”.  Well, nobody is laughing now.  You see, the truth is that debt is a very cruel master.  Greeks were able to live way beyond their means for many, many years but eventually a day of reckoning arrived.  At this point, the Greek economy has been in a recession for five years in a row, and the economic crisis in that country is rapidly getting even worse.  It was just recently announced that the overall rate of unemployment in Greece has soared above 20 percent and the youth unemployment rate has risen to an astounding 48 percent.  One out of every five retail stores has been shut down and parents are literally abandoning children in the streets.  The frightening thing is that this is just the beginning.  Things are going to get a lot worse in Greece.  And in case you haven’t been paying attention, these kinds of conditions are coming to the United States as well.  We are heading down the exact same road as Greece went down, and the economic pain that this country is eventually going to suffer is going to be beyond anything that most Americans would dare to imagine.

All debt spirals eventually come to an end.  For years, Greece borrowed huge amounts of very cheap money, but there came a point when the debt became absolutely strangling and the rest of the world refused to lend the Greek government money at such cheap rates anymore.

Greece would have defaulted long before now if the EU and the IMF had not stepped in to bail them out.  But along with those bailouts came strings.  The EU and the IMF insisted that the Greek government cut spending and raise taxes.

Well, those spending cuts and tax increases caused the economy to slow down.  Tax revenues decreased and deficit reduction targets were missed.  So the EU and the IMF insisted on even more spending cuts and tax increases.

Even after all of the spending cuts and all of the tax increases that we have seen, the debt to GDP ratio in Greece is still higher than it was before the crisis began.  Today, the Greek national debt is sitting at 142 percent of GDP.

Now the EU and the IMF are demanding even more austerity measures before they will release any more bailout money.

Needless to say, the Greek people are pretty much exasperated by all of this.  They created this mess by going into so much debt, but they certainly don’t like the solutions that are being imposed upon them.

Protesters in Greece are absolutely outraged that the EU and the IMF are now demanding a 22 percent reduction in the minimum wage.

Most families in Greece are just barely surviving at this point.  Unfortunately, Greece is probably looking at depression conditions for many years to come.

Over the past three years, the size of the Greek economy has shrunk by 16 percent.

In 2012, it is being projected that the Greek economy will shrink by another 5 percent.

Sadly, that projection is probably way too optimistic.

Over the past couple of months, it has been like someone has pulled the rug out from under the Greek economy.  Just check out the following numbers from an article in the Telegraph by Ambrose Evans-Pritchard….

Another normal day at the Hellenic Statistical Authority.

We learn that:

Greece’s manufacturing output contracted by 15.5pc in December from a year earlier.

Industrial output fell 11.3pc, compared to minus 7.8pc in November.

Unemployment jumped to 20.9pc in November, up from 18.2pc a month earlier.

I have little further to add. This is what a death spiral looks like.

Can you imagine unemployment going up by 2.7 percent in one month?

This is what a 21st century economic depression looks like.

And needless to say, civil unrest is rampant in Greece.

The following is how a USA Today article described some of the protests that we saw in Greece this week….

Scores of youths, in hoods and gas masks, used sledge hammers to smash up marble paving stones in Athens’ main Syntagma Square before hurling the rubble at riot police.

The country’s two biggest labor unions stopped railway, ferry and public transport schedules, and hospitals worked on skeleton staff while most public services were disrupted. Unions were planning protests in Athens and other cities around midday.

Greek citizens are exasperated by the endless rounds of austerity that are being imposed upon them.  They wonder how far all of this is going to go.

How much higher can taxes go in Greece?  Greece already has tax rates that are among the highest in Europe….

Greece has the third highest rate of VAT in Europe, second highest gas/petrol tax, third highest tax on social insurance contributions, fifth highest VAT on alcohol, highest property tax and one of the worst corporate tax rates, without the quality of living or competitiveness to match.

How much farther can government pay be cut?  Greek civil servants have had their incomes slashed by about 40 percent since 2010.

How would you feel if your pay was reduced by 40 percent?

Large numbers of Greeks are rapidly reaching the end of their ropes.  The following is from a recent article in the Independent….

“People are scared and haven’t really realised what’s happening yet,” George Pantsios, an electrician for the country’s public power corporation, said. He has only been receiving half of his €850 monthly wage since August. “But once we all lose our jobs and can’t feed our kids, that’s when it’ll go boom and we’ll turn into Tahrir Square.”

Instead of turning violent, others are simply giving in to despair.  According to the Daily Mail, large numbers of Greek children are being abandoned because their parents simply cannot afford to take care of them anymore.  The note that one mother left with her little toddler was absolutely heartbreaking….

One mother, it said, ran away after handing over her two-year-old daughter Natasha.

Four-year-old Anna was found by a teacher clutching a note that read: ‘I will not be coming to pick up Anna today because I cannot afford to look after her. Please take good care of her. Sorry.’

Sadly, there are an increasing number of Greeks that are giving up on life entirely.  The number of suicides in Greece rose by 40 percent during just one recent 12 month time period.

But we haven’t even seen the worst in Greece yet.  The worst is still yet to come.

And the people of Greece are going to get angrier and angrier and angrier.

According to one recent poll, about 90 percent all of Greeks are unhappy with the interim government led by Prime Minister Lucas Papademos.

This week, that government has started to fall apart.  Over just the past few days, 6 members of the 48-member government cabinet have resigned.  Not only is there real doubt if the new austerity measures will be approved, there is very real doubt if this government will be able to hold together much longer.

Frustration with the EU and the IMF has reached a fever pitch in Greece.  Just check out what Reuters is reporting….

In a letter obtained by Reuters on Friday, the Federation of Greek Police accused the officials of “…blackmail, covertly abolishing or eroding democracy and national sovereignty” and said one target of its warrants would be the IMF’s top official for Greece, Poul Thomsen.

So what is going to happen next in Greece?

The truth is that nobody knows.

But whatever kind of “deals” are reached, the reality is that nothing is going to keep Greece from continuing to experience depression-like conditions for quite some time.

Unfortunately, Greece is not an isolated case.

Portugal, Ireland, Italy and Spain are all going down the same path and Europe does not have enough money to bail all of them out.

To get an idea of how much money it would take to bail out the financially troubled nations of Europe, just check out this infographic that was recently posted on ZeroHedge.

A day of reckoning is coming for the United States as well.  As CNBC recently noted, the U.S. debt problem is far worse than the European debt problem is.

That is why I have written over and over about the U.S. national debt and about how the U.S. government is spending too much money.

Right now, the U.S. government is still able to borrow gigantic mountains of very cheap money and is spending money as if tomorrow will never come.

Well, just like we saw in Greece, when debt gets out of control a day of great pain eventually arrives.

What we are watching unfold in Greece right now is coming to America.

You better get ready.

  • Rodster

    As usual excellent work Michael. 🙂

    Greece bailout: Lucas Papademos warns of default chaos

  • r.bitting

    But God demonstrates his own love for us, in that while we were still sinners, Christ died for us. Much more then, having now been justified by his blood, we shall be saved from wrath through him. For if when we were enemies we were reconciled to God through the death of his Son, much more, having been reconciled, we shall be saved by his life. And not only that, but we also rejoice in God through our Lord Jesus Christ, through whom we have now recieved the reconciliation…. Romans 5:6_11.

    • Gary2

      Yeah knowing this really fills by empty stomach.

      Does not fill my wallet. Less talk! show me the money!

    • Alasha

      amen! what else can b said except look at is happening is Syria!! we can’t even drink it all in!!

    • No brainer

      This is the biggest load of crap I’ve heard. The religious demagogues always come out in hard times and preach about a nonexistent god. Why doesn’t god give the Greece more money so they don’t have to suffer so much. Better yet everyone should give the church 10percent so they can hide more pedophiles. When the depression comes to you full force you will see how kind your god is and how well your prayers work. Keep dreaming on religious slaves.

      • Mario

        You have a choice either confess now that Jesus is Lord or when he returns, which is not that far off you will bow before Him and confess with your lips that He is Lord.
        The choice is yours.

      • Gary2

        I am still waiting for someone to explain the Gog-Magog-Godzilla to me.

        • tak

          go to chruch gary they will explain it to you, you say that dems are so much smarter then the rest of us it should be easy for you to pick it up, one day and very soon you will confess that GOD is LORD of all

    • Raghav Mishra

      why is it that Christianity is full of ******************?

    • CIA Broom Closet Monitor #301

      “God helps those who help themselves” -and in reality according to the Holy Quran he sees all and the hearts of men are full of evil to the depths of the sea.
      The Americans have dug their own karmic grave and will spend their hours as the writer does dithering, whining and praying as the darkness enfolds them just as it did in years past. Most are as brave as a bunch of scared high school girls in a cheap Hollywood horror movie. The rich of them are also the most selfish on the planet. Mitt Romney is a perfect example. Obama is acting his mission perfectly as he knows from bitter experience what America is all about. Slavery, manipulation,war,and self-righteousness. An evil,evil country much worse than Greece by far.
      Who has Greece slaughtered lately?
      And don’t give that the Globalists did it I’m not responsible crap either.
      We will not forgive.
      We will not forget.
      Expect us.
      A lot of Jews were very observant on the way to the gas chambers. It didn’t bother the guards much one bit, in fact it’s preferable because they are more compliant. That is what religion my friend is-opiate for the people. Marx hit the nail on the head.
      I myself prefer to lobe a few mortars before going down :)And I don’t think Jesus minds one bit!

      • tak

        cia very well put,GOD will judge us for what we have done in this life he is just,iam a christen, not perfect but iam forgiven of my sins

    • Tates

      And we will all be raptured to heaven, and live in the clouds wearing sandals and togas.

      • tak

        tates I will but by the sound of your post you will be in hell I hope you like heat

  • Nostradamus

    “America is created by God. It is God’s country, unique, permanently special. God takes care of America. God and Goldman finances America to all its desires. God protects America from Islamo-Fascists gives America infinite resources. God make sure America wins holy wars and certifies all its methods as moral. This is why America is not Greece. Greece gods are all myth. America God is real. Here is the proof: the reign of G.W. Bush confirms America’s divine destiny and splendid greatness. Return to the path of the Bible. Pray and pray some more. Then everything will be heaven!”

    – GOP evangelical sermon during presidential campaign

    • Matt

      Seriously, what are you talkign about? Find it a bit ironic that Europe, and the US used to be Christian peoples, and compared to the rest of the world thrived enormously? Just as our populations complete our ambandonment of God, everything just starts to completely unravel. Must just be a coincidence…

      • Nostradamus

        What am I, Nostradamus, talking about?

        I have seen centuries of history and I have seen enough. Dogmatic and blind religious strife have destroyed much of Europe many times over the centuries, even before the 20th century world wars. When the American founding fathers crafted the Constitution, they were only too aware of the European decease where Church power integrates with state power resulting in never-ending holy wars. So they separated them in the Constitution.

        Recently, American politics and government itself have been taken over by fundamentalist religious idiots. The result is unholy polarization of politics, religious war of conquest in the name of national security. There was even financial plunder in the name of ‘God’. The US has descended into a place where religious stupidity trumps critical thinking and knowledge.

        It is one thing to have personal religious faith. Billions of people has them, from the Shinto worshipers of Japan, to the great religions of India, China and Korea. 2.5 billions of the people of Asia have faith completely outside of the 3 faiths that originated from the Middle East.

        But horror and disaster always happened when religion takes over the state. Have we ever seen the kind of warfare, conquest, strife, and hatred from Asian religions. Hardly. Have you even seen the Tibetan monks waging holy wars, crusades or Inquisitions? Or Buddhist priests hitting their enemies with suicide belts? Have you ever heard the Dali Lama proclaiming absolutism on sex, homo, birth, all the way to science and who invented the universe? No.

        Yet, here in America we have all these in complete defiance to the wishes of the founding fathers. The mark of national stupidity is when everybody use ‘God’ to explain things their weak mind cannot comprehend, and justify everything the powerful and selfish want to do.

        The European decease up to the 19th century has arrived in America. Just when the Europeans themselves, all 500 million of them, has had enough and moved away. Towards a more rational and balance path – much to the chagrin of the Pope. The look across the Atlantic ocean and see America marred in the stuff that nearly destroy themselves, and wonder whether to cry or laugh.

    • Shazam

      Yeah!! Right!!

      Have you considered that God’s wrath is coming? Just like what he did to the previous generations before Christ?

      Are the current conduct of the people inline with God’s wishes and command? Afraid not!

      How many still believes in God and how many against any sort of religion? Show of hands?

      • tak

        my hand is up hope you can see it ,people we are close to the end repent now before its to late

    • Tapper P.


    • That sermon all makes sense when you understand that the god they are referring to is Lucifer.

      Goldman Sachs, the elite bankers, G.W. Bush, all worship the god of money, mammon, which is empowered by Lucifer.

      As for the holy wars, the leaders of Israel control the U.S. finances, politics, media and military, so we are simply doing their bidding of conquering their enemies and taking over the resources.

    • DB200

      “America’s God is real.” That is spot on!

      America’s God is called Mammon and this one is very real: it eats its own children.

    • Furthermore, Lynne Cheney stated on a YouTube that Obama is related to Bush and Cheney and how he is related to them. That’s why it has become worse in the United States now since Obama was elected.

      • Highspeedloafer

        Some of you people are just plain nuts!

    • Proftel

      America is created by God, as He did in the past there Diaspora … .

      Man, get real, you are screwed with so much debt.

      Here in Brazil A in ten have a credit card (if this fool “a” is considering pay what you owe).

      I even got to have two cards, and took two quitei pliers, broken into pieces, with the largest was 4 mm.

      I gladly swear to you that do not want more debt today is to receive and pay bills, that’s all in cash.


  • Pechez


    I work for an insurance company and lately have been getting lots of calls from pepole who wrote checks to us that have not cleared their banks after say a week. We have no reason to hold checks, the sooner the money is in our bank the sooner we collect interest. Is it possible other banks are now being slow to clear checks written on their banks in an effort to hang on to the money longer? Thats a very scary thought. Let me know what you think.

    • Michael


      It is certainly possible. I have heard some weird stories, but I don’t know how widespread this kind of thing is.


      • Yes, I agree Michael. This is also why one is limited to withdrawing $300 per day so that the banks hold on to money longer to support their fractional lending scheme.

        • John W.

          They limit you to $300 a day for ATM withdrawals, some banks limit out at 200 a day. That is so if your card or PIN is compromised by a crook you will not be cleaned out immediately. I have never had a problem getting more cash at the counter. Maybe you should switch to a credit union. Mush better all around you even get to speak directly to the VISA dept. without a big run around.

    • Malcolm Reynolds

      BoA sold one of my mortgages to a company called Green Tree. These douches charge $12 to pay the mortgage online. Screw that, I’m making them pay some poor schmuck to process my payment manually and it only costs me a stamp.

      They hold the checks for WEEKS before cashing them. I have a feeling it’s so they can try to claim I was late paying the mortgage and collect fees.

      • John W.

        Watch out for Green Tree. Get automatic payment to avoid the holding of your checks as they do delay so as to generate late fees. Another cute trick they pull is to take interest up front should you make an extra payment not putting it to principal. Get a new loan preferably through a credit union.

      • SpiderMonkey

        Send the Check with a return receipt if you can, it is only another $0.80. I did this with Verizon and they magically started getting my payments on time and stopped the $5.00 late fees. These clowns are broke and looking for any revenue to prop up their house of cards.

    • BenjiK

      I have heard of this happening locally with utility bills. There doesn’t seem to be a problem with checks written out of credit unions and local banks though, just the “name brand” banks. There’s also something goofy going on with tax-returns this year:

    • DB200

      Another thing happening here in Europe: internet banking at large banks that does not work properly because of “technical problems with servers and IT systems”.

      And the media is spoon-feeding this nonsense to the public like it is a stand alone situation. No reference is made to bank holidays or bank runs.

    • It certainly is, especially if so doing they can charge an extra fee, or bounce a check or whatever. Having lots of problems with banks for quite a while. They don’t even want to cash checks that were written on their bank by customers, for people who the checks were written to but aren’t bank customers. The banking system needs to go down, clear it out, and rely on our credit unions until all the criminals are locked up for life.

  • Jeff

    Michael, thanks for another informative article. Question: According to the national debt clock, US debt increases, while Total National Assets decreases. why is the latter happening so quickly? is it the bleeding of jobs as you mentioned before? thanks.

    • Michael


      It looks like the debt clock has household assets set to go down on a continual basis. Household assets have certainly declined over the past few years, but I don’t know if they are still declining.


  • Kevin2

    The US has a difference.

    The US can print it’s own money and the world accepts it.

    The first part printing our own money will continue. When the second part, “The World Accepts It” ends so effectively ends the US.

    The more that you do of the former the more you hasten the latter.

    • Highspeedloafer

      I’d give you a thumb’s up if I could.

  • What’s coming to America?

    “Bellum Omnium Contra Omnes”

    What are the U.S. governments doing to help?

    “Fighting Terrorism By Boiling Frogs”

    Yeah, that ought to help…

    • Malcolm Reynolds

      Sorry if that’s yours, but I had to stop reading when the stupid writer started pleading that abortion doesn’t cheapen life.

      • It is times like this that I know how Galileo must of felt standing before the pope…

  • El Pollo de Oro

    The situation in Greece hits home with me because I visited Athens on some business not long before the first Greek riots of 2008 broke out. I went all over the place (Syntagma Square, Monastiraki, the Parthenon, Piraeus, you name it) and had a very good impression of Athens. I stayed in an area of the city called Omonia, which has a reputation for being seedy but didn’t seem dangerous compared to North Philly, West Baltimore or Camden. So I returned to The Banana Republic of America (formerly the USA), and a few weeks later, all hell was breaking loose in Athens. It was chilling to turn on the news and see so many of the places I visited around Syntagma being trashed.

    And here’s another thing that’s chilling: the type of unrest we’re seeing in Greece is coming our way here in The Banana Republic of America (BRA). Gerald Celente has often said “When the money stops flowing down to Main Street, the blood begins to flow on the street,” and the blood will definitely be flowing like rivers in the streets of BRA cities. The violence will take two forms: (1) there will be riots and widespread political unrest like we’re seeing in Greece, Spain and other parts of Europe, and (2) there will be a plague of violent crime like we’re seeing in Ciudad Juarez and Caracas. Former construction workers and former IT professionals will be the kidnappers, drug traffickers and carjackers of tomorrow. Formerly middle class Greeks don’t like being shoved into Third World poverty; nor do formerly middle class Americans.

    Sadly, things are going to get even uglier in Greece, and they’re going to get really ugly in the BRA as well. To quote Gerald Celente again, the blood will be flowing in the streets. God help us.

    • DaytoDay

      El Pollo, I agree.

      You are lucky you got out when you did. I wouldn’t want to be stuck in a foreign country with riots in the streets…

      And I think most people are one brain-cell click away, from completely losing their mind as it is…

      Good comment.

    • FrankyFreelance

      El Pollo,

      Yes, the middle class of the BRA has no idea what is about to happen to them. The simple fact is that all of the money which results from productive capacity is leaving the BRA (with the exception of the high-tech stuff – which is of course the main product which is being exported to run the new world order).

      The BRA is becoming a shell of its former self with the only thing left being debt. The productive money has been migrating at an accelerated pace to (primarily) Asia. In addition to the intellectual property that we are giving to the corrupt Asian governments we are also giving them a whole bunch of “international aid” (aka : “international welfare payment from the working classes of the developed countries into the filthy pockets of the corrupt elite talking-baboons of the Asian third world – where most of the population still hasn’t caught onto the idea that washing one’s hands prevents disease) and the societies and economies run on nepotism and bribery.

      The Banana Republic of America has become such significantly because we have let every third-world laborer and their extended family into the country to take the jobs that most natural Americans can’t because it does not provide enough income to cover the exorbitant cost of living (ex. Starbucks latte = $3.00). As a result the legal and illegal immigrants have a better chance of obtaining employment (which they of course send back to their third-world countries where they often use it to them operate businesses which exploit their own people) than the native citizens.

      The bottom line here is that the Banana Republic of America has been bled dry of its resources for the benefit of the multi-national corporations whose only concern is operating its businesses in the cheapest places possible – regardless of the ethics of the situation.

      Sure, there are lots of people in China, Vietnam, Cambodia, Thailand, Malaysia, India, Philipines, etc, etc, who are more than happy to work for peanuts as it is a step up from the alternative of literally living in mud. Who cares about the legality of it all? The multinationals increase their profits and the third world gets the juicy technology, “development aid” and increase economic activity that it needs so that their elites can live like fat cats on the backs of their populations and the international welfare system.

      Personally, although I am not a hardcore Christian I do hope that some of these people on this board are right that God is going to bring some justice to this situation. I especially hope that when this whole thing comes crashing down those filthy, racist, third-world corrupt Asian countries get hit the hardest and descend right back into the feudalistic genocidal cesspools that they were before the West came in to help them out of the sandpit – only to snub their noses at us now that the money has started flowing their way. The bottom line is that the original third-world countries have been in such a state for a reason and once that juicy international welfare money stops flowing they will be naturally put right back into the place that they belong.

      Sorry for the caustic post but I have been living and dealing with these the Asians for nearly a decade and have little sympathy left for them. Most of them will sell their own sister on the street corner (which is obviously done quite often) and then put that stupid smile on their faces and play the dumb, guilt-trip act as the developed countries feel sorry for them out of ignorance and keep that filthy money flowing.

      • Sunshine

        “Sure, there are lots of people in China, Vietnam, Cambodia, Thailand, Malaysia, India, Philipines, etc, etc, who are more than happy to work for peanuts as it is a step up from the alternative of literally living in mud. Who cares about the legality of it all.”

        I’m not so sure all are “more than happy”. Talk with some of these slaves and they might tell you that they are working off “loans” that can take a decade or more. That they are housed by the owners who brought them here. Modern slavery is very real and a horror.

      • Craig

        I’d be curious to know what country in Asia you especially dislike. Thanks.

  • chiller

    So many sheep being lead to slaughter…

  • McKinley Morganfield

    A historical reversal is near. Instead of saying its all Greek to me, we need to say we are all Greeks. In the case of the USA, we are Greeks on steroids. I don’t think this will be a slow motion train wreck. I think that once the bank failures and sovereign defaults start in Europe (some time this year) we will slam into the debt wall at the speed of sound. A few days or at most a few weeks and a deep global depression will grip the bond, equity, and commodity markets. Prep, prep, prep, and be a good neighbor.

  • DB200

    A few remarks.

    “Once upon a time, the Greek economy was thriving”. That must have been in the time of Alexander the Great as it has been a basket case ever since. Only fools would have lent money to the Greek. And I think those fools should feel the pain to because now the Greek people have to suffer to save the banks. Let the banks rot.

    I pity the children that are left alone. How miserable life must be before you abandon your children? On the other hand, it also may have to do with how cold and heartless western society has become. Nevertheless, the weak should not suffer the most under these harsh conditions. This is called solidarity (and not socialism).

    One market is growing: that of the German language courses. The Greek are learning German in droves.

    One more thing: the problem with Greece is not taxation but collection of the tax. Ordinary people are taxed heavily while the well-off dodge taxes unpunished. When the hardship becomes unbearable you can expect riots and bloodletting in the well-to-do neighborhoods.

    • I have a friend in Athens who is a counselor in an art college. He told me that the parents of the students pay for their tuitions. This is in the decade of the 2000s, so it could not have been that bad for that long unlike what you wrote here.

      • DaytoDay


        And now the Greek economy is about to collapse, under the weight of it’s own debt…

        I wonder how the parents could “afford” to pay for their kids to go to college? (Credit cards, student-loans in their names, etc.)

        It’s the same thing here in America… Most parents pay for their kids to go to college, and look at our National Debt because of it…

    • Proftel

      Cara, você não imagina do que os Gregos são capazes de fazer, vai por mim, daqui uns meses você verá.


  • This is a very good model of chaos to watch as it may well become USA.

    While you can still vote – do so this year.

    Stock up, 1 can at a time.

    Old Timer

  • newton

    Do you realize what your saying ?

    The ramifications of a similar situation here in the USA would be almost uncalculable.

    Think for a moment; exactly what the USA means to the world —————– it’s pretty amazing.

    No; we will be the last ones standing – that is why we are still the place in the world where all others are parking their capital; we’re the least bad if you will.

    I’m not saying it cannot happen and I’m not saying our idiot politicos and banksters are better than any other countries. But I am saying
    this is STILL the best place in the world to be
    and that’s why India and China and Japan continue to buy our tech, our paper and our property.

    Who the hell wants to buy a piece of China !

    Yeah; they have cheap idiot robots — that’s all

    All is not Rosy in the USA – but where else would you wish to be ?

    If it does get that bad here what is your timeframe?

    • You aren´t very bright mr “newton”. Your comment reeks of typical american arrogance. Wake up!

    • wendi

      All is not Rosy in the USA – but where else would you wish to be ?


  • Tim

    “Today, the Greek national debt is sitting at 142 percent of GDP.”

    And the USA isn’t too far behind. The Office of Management and Budget (the White House budget office) is projecting a budget deficit of $1.33 trillion for the current fiscal year. That is higher than last year’s budget deficit, and it’s higher than the Congressional Budget Office’s projected deficit for the current fiscal year. This is quite an economic recovery!

    • Michael

      We are going down the same road that Greece went down.

      Only on a much larger scale.


  • Rodster
    • Michael

      Yes, I saw that.

      Not a good sign.


  • VyseLegend

    Is Greece going to have a major Anarchist revolution? Or will there be a fascist dictatorship, massive crackdowns on the people, decades of strife and destitution. I really feel for Greece, but maybe we can hope the birthplace of Democracy can be the first to arrive at whatever comes next.

  • GoneWithTheWind

    Not really! The picture should be titled “this is what union activism looks like” The recession didn’t riot and burn cars the government employee union members did.

  • Tatiana Covington

    The damage is entirely self-inflicted. Nobody made them take on that debt, it was their own free choice!

    Let them stew in their own juice.

    • DB200

      Self inflicted but with the “little” help of some friends: Goldman Sachs who was the drug dealer to the (debt) addict Greece.

      Morally despicable behaviour but perfectly legal.

  • William

    The time for the Greeks to default, get out of the EU and Euro has passed. It is too late now.
    The “medicine” being forced onto the Greeks will drop GDP, which will reduce revenues to the Greek govt, which will drive further “austerity” measures. This is coming to America unless there are significant changes in tax and spending policies in the next 2-3 years. I have read the writings of numerous knowledgeable people in finance and of past govt service (Rivlin, Bowles, Simpson, etc) who say we can still, save the nation….IF the required changes become real. That is not likely as the US Congress is just a pack of bought and paid for FOOLS. Oh, yes, they will extend the Chimp’s tax cuts, and start another unfunded war. Be sure to reelect the IDIOTS who “represent” you in Nov of 2012.
    They are OWNED by Wall ST.

  • mondobeyondo

    Greece made the tragic mistake of going into debt, then being unable to pay the debt, they asked the IMF for a loan to pay the interest on the debt they owed for the first loan! So now they are in big-time trouble.

    The U.S. is hugely in debt, too. But we can just print more dollars, which eventually reduces the dollars in your pocket to kindling or toilet paper. We are potentially in even worse trouble than the eurozone.

  • newton

    Timeline ???

    • DB200

      Somewhere between 2013 and 2017. Google for “hyperinflation report”.

  • The difference between the Greek riots and the coming USA riots is we bring guns to our riots.
    See how to survive the coming Economic Collpse at:

  • A offical in Greece was Quoted “People in Greece
    Are Experiencing conditions that were worse than there ancestors experienced during the Great Depression”. Also a contract worker manning one of several soup kitchen lines said some lines were in his estimate were a mile long,but also was quoted as saying that when that department runs out of money in June the lines would no doubt be shut down,then you will see riots/civil unrest,also the 20% unemployment
    is true,as I mentioned Before only God Can Save These People and if I Was A Former politican that was involved in creating this nightmare I
    Would definately get the hell out of there as fast as I Could,the vigilanties are coming for them. There is no amount of money that can straighten this out,these people need to face reality that there country is going to collapse and that is what is going to have to happen in order for them to rebuild and if they do not learn anything from this what can anybody say or do?

  • old soldier

    I agree with Old Timer’s assessment that this could very well be what will happen in the U.S. What gets me are the kids, the kids being abandoned by parents. What’s to happen to them in such a scenerio? If this is a preview of what we in the US. can expect to see, can we really assume the government is going to take care of these kids? Don’t think so. I have no answers, only stating the facts.

  • old soldier

    Good article by the way.

  • Workhorse1

    This reminds me of a book “When Money Dies” written about Weimar Germany . It stated everyone was angry but nobody knew why.

  • nowwthen

    Everyone who has anything to gain by defeating Obama had better get their asses to the polls in November. This may be the last election where the votes of those who pay the bills can exceed the votes of those whose bills we’re paying.

    • Highspeedloafer

      You are so right. To what extent a republican will make a difference is still up in the air though. I am a republican, and I am utterly ashamed of my party, but at least I believe any republican will be better that obama.


    Crash and burn Greece baby, Crash and burn…………


    Amerika, you are next to fry……………

  • expat prepper

    Thank you for keeping us informed of these developments. I read a couple hours a day, but the time it takes to research and summarize this article must have taken half a day. Your efforts are not going un-recognized.

    • Michael

      expat prepper:

      Thank you for noticing the efforts. I spend a lot of time in front of the computer that is for sure. 🙂


  • Eisenkreutz


    I feel no sympathy for the Greek people or the people of any other country. We brought this on ourselves and we deserve to suffer for our foolishness.

    The most salient point of the decline of America, which I feel that few others understand, is that America has degenerated into a democracy from its inceptive form as a constitutional republic. The founding fathers hated democracy and despised it as an inferior form of government (readers should Google the founders’ quotes on democracy to convince themselves). The only democratic institution in the constitution is the House of Representitives. Presidents are elected by the electoral college, not the people, and Senators had no right to vote on their own recognacence prior to 1913, they were given voting instructions and strictly controlled by their state legislatures. Neither are supreme court justices elected. Repealing the 17th amendment is the holy grail of conservatism. It would restore veto power of federal regulations to the states, thereby decreasing central power, increasing gridlock, and slowing the growth of government and thereby the debt and the erosion of our civil liberties. Do I ever wish the people would come to their senses.

  • davidmpark

    Just been watching video of the latest riot over in Greece. A lot of Molotov Cocktails (really well made ones, too) being thrown at police and buildings.

    If they are running out of funds and the people are pretty much near starvation, then where are they getting the materials to riot with? Molotov’s and some of the weaponry they’re fighting police with isn’t cheap over there. It’s not just throwing broken bits of concrete with a shirt over their faces anymore; we’re talking some stuff from anarchist cookbooks and Occupy. Those Molotov’s alone would be about $10 USD.

    Where are they getting the funds for weaponry if food, water, medicines and everything else is sky high?

    • John W.

      The Communist Party is and always has been very stromg in Greece. In 1948 the US sent aid to prevent the Stalinists from overthrowing the govt. The fools prattling on about the end of the cold war in 1991 provided me with much amusement. The cold war never ended just the tactics.

  • mark

    You had better store more than some canned food. You should store wheat, rice, beans, other grains, seasonings, cooking oil, shortening, sugar, salt, honey, seeds of all kinds, expand your food storage to include all of the extra things that you like to eat. You will need all of the tools to use your food storage. Such as wheat grinders, swing-away brand can openers, and all of the tools to cook your food. Learn how to bake bread and cook from scratch. Learn how to grow a garden and collect the tools, seed, and manure to have a good garden. Have a few extra pair of good work boots and work clothes that will hold up well. Some extra tough jackets to keep you warm when you can’t afford to heat your house. Extra blankets and sheet sets to sleep well. Extra medicine for cuts and other health problems. A way to purify your water and store some water for your use. You will also need the tools to protect yourself. Store soap and toilet paper and rags. Towels and wash cloths and maybe a washboard if you don’t have a working washing machine. If we turn into a Greece these items well be quite handy. If all of the debt is forgiven and we all get to hug each other and start over ( lol ) all this stuff you can stll use in your everyday lives. Well all execpt the wash board.

    • no way! washboard=bluegrass band!

  • Ed_B

    Good article but I must take exception to the idea that Greece style unemployment is COMING to America. Coming? Hells bells! It’s here now! The government just puts some lipstick and a few pearls on our sow of an economy by lying about the numbers.

    Not so with John Williams of John is a brilliant economist and truth teller. No glossing over the facts for him or any of those who look over his excellent web site.

    All of the B$ that is being spouted about the USA only having 8.3% unemployment or 3.5% inflation is complete nonsense. This can be proved with very little effort via a few minutes time doing Google searches; something that the Main Scream Media seems unable / unwilling to do. Shame on them! No wonder Gerald Celente refers to them as Presstitutes. They deserve every bit of that suggestive appellation… and more.

  • mondobeyondo

    “The Debt Pump” – a nice little 6-minute long film that illustrates just how precarious our financial situation is:!

    Warning: Don’t watch this in the evening. You’ll be up all night. Be afraid. Be very afraid.

    • Michael


      Yes – that is a great video.


  • Algore

    Sorry for the salary cuts in Greece, but they never should have been as high as they were. Greece doesn’t produce enough to allow them a first-world standard of living.

    The thing about abandoning children is, if you will not care for your child, what do you think a stranger will do with them? Let’s not sugar coat it, these parents might as well sell their child into slavery or prostitution, or kill them outright. They are condemning them to a horrible existence or early death. Child abandonment is despicable.

    I will abandon my children only as my body assumes room temperature.

  • Gary2

    Michael-it looks like Gog-Magog trashed the city from the picture for this post. Or was it Godzilla?

  • Paranoid

    Add in this: No big city feeds itself. All those big food stores you see. Bread and milk,1-2 days supply. meat, produce perhaps one day more. Canned goods normal demand; 4-5 days. If the trucks don’t run on the 5-7th day the city gets unmade; It’s over. If you are in a big city and have people you love, calling Ghost Busters won’t help. Right now ,for about $100 you can buy a years supply of rice, beans, sugar, flour, and oil,plus 500 vitamins, will keep one for a year. Find a friend out of the big town, one thing you can bet on. WHEN IT’S TIME; IT’S TO LATE.

  • Mo
  • Alasha

    And let’s not 4get Argentina…

    honestly, i just wish it would happen already… this limbo bites… sigh

  • 007

    How depessing. How much would you have to save and scrimp just to survive in an environment like this. Unfortunately, the only hope would seem to be to get out of the country. The problem with that of course is when it hits here there will be nowhere to run.

  • ScoutMotto

    Greece should tell the EU to stick it and issue their own currency debt-free.

  • Nexus789

    It is true that the US is still the ‘lender of last resort’ but it is probably now certain that there is nothing the US can do to prevent the eventual collapse of its currency, and then its economy.

    Currently there is a kick the can down the road approach until the inevitable end. The US increasingly has no reserves to support its value and is critically dependant of the credit from other countries. Over recent months, both Russia and China have accelerated up the switching their considerable dollar reserves into Euro and other currencies and many countries are opting to trade directly using their own currencies and not to use the US dollar. This means that the Federal Reserve is now buying this debt. These developments are now accelerating the increasing lack of confidence in the dollar, to a point where here may be total global lack of confidence in the currency and the emperor will be seen to have no cloths. This would set the scene for free-fall. For instance the top US banks have hundreds of Trillions of dollars in derivatives that could collapse the global financial system in a day.

    A collapse of the dollar will be a once in a lifetime experience – immediately pushing the world into a full on global depression. Those nations with external debts will not be able to trade sufficiently to earn the income to service their debts, and will rapidly slide into bankruptcy. Counties that are in the dollar ‘sphere’ – New Zealand, Australia, Canada and the UK may also collapse due to their indebtedness and not being able to service their borrowings. It will result in a rapid increase in poverty inside the US – everything in the US will immediately become more expensive, or hard to obtain as the system disconnects with food shortages and a consequential break-down in social cohesion.

    • Old Man

      “Counties that are in the dollar ‘sphere’ – New Zealand, Australia, Canada and the UK may also collapse due to their indebtedness and not being able to service their borrowings.”

      Not quite. NZ, Australia, Canada have much lower national debt, have vast untapped resources, and such a small population compared to their landmass and resources. They will be just fine no matter what. Even if US goes into some sort of collapse.

      More troubling is UK. UK national debt is very high but the bigger problem is insufficient resources and talent to bring the debt down. Their North Sea oil/gas will be gone in a decade and will have to import these energies at great expense. They face a dire future.

  • Terry

    If the minimum wage is insufficient to live decently, how are people going to live under a 22 percent reduction in the minimum wage?

    And why should the minimum wage workers take the hit for the overspending of those who lived far more lavishly?

  • Mike

    Good article Michael,
    Greece is in a world of trouble ass you point out and the USA is not far behind. I think that when Greece does collapse, the rest of Europe will follow suit. Our turn will be soon after; I just wish I could get a handle on when its going to happen.

  • Pat

    I disagree. I believe that there are millions of Americans being poisoned and starved quietly already. You just don’t see it on the evening news. Most people are in a trance thanks to the ever present T.V.

  • Craig

    I think America’s moral and Christian foundation is what is rotting. When you see people like Harry Reid and Nancy Pelosi running the congress, you have to wonder how moronic the American people can be to elect these Godless people. To their way of thinking, if America would just get rid of their religion, they could usher in utopia for all of us.

    Picture of friends daughter at church I used to go to:

  • chiller

    Psychopathic tenancies of the mentally ill people who created this mess, prevents them from the realization they have no hope of repairing the damage with a continuation of more of their failed ideas. Just like a struggling swimmer who panics, clouded, poor judgment sets in just before drowning.

  • Fras

    The economic situation is still very scary despite the false optimism of the past few weeks. I think there are still a lot of people who have their heads in the sand who dont want to face the reality of the global economic crisis and they would rather live in denial. Even here in australia where we have been relatively unscathed to date things are starting to take a turn for the worse. There have been a lot of job cuts announced recently and consumer confidence is very low. Will be a very interesting year ahead. Great website. Keep up the good work.

  • We all know that what happens across the pond is coming here. I have covered the Greek crisis extensively. Please see my articles posted below.

  • now imagine if the greeks had access to guns like the US does.

    • mondobeyondo

      That’s scary. The same thing happening in Greece now, will eventually happen to us.

      It’s going to be the OK Corral x1000, nationwide.

  • Glancealot

    The big banks knew their derivatives were bad gamble and controlled the rating agencies that rated the security packages sold around the world. Then they made money on the flip side of these packages sold when they collapsed with credit default swaps. No bailout money goes to the toxic debt still on the banks books. The mega international banks own the federal reserve. Money keeps being printed in trillions out of thin air with nothing intrinsic to back it like gold. Interest rates are going to skyrocket. Taxes are going to skyrocket. Severe depression like we have never seen is coming. All designed on purpose. International trade agreements that ship jobs and factories overseas, that are not fair in any shape or form. Borders still wide open, while endless wars continue because the made up terrorism false flags Muslim bad guys are going to get you. Government passes indefinite detention of Americans without trial or charge if they want. 30,000 drones approved this week by congress for the USA by local police to use. Halliburton subsidary KBR sent out letter in December that they are looking for contractors to be able to staff within 72 hours the 500 plus fema camps already built. Who do you think these are for?
    What will you do to fight tyranny?
    This is no joke and is real.
    You had better be ready.

  • Cinderella Man

    Greece is our Lehman moment. Remember they collapsed in March of 08 if I am correct. Now gas needs to climb above $4, the Giants won again now wash, rinse, and repeat. I feel this is it, Michael. This is the collapse you have been waiting for. I watched that show Doomsday Preppers and according to their experts the chances of an economic collapse is low. I dont know what kind of drugs these “experts” are on, but they must be good. Even CNBC is starting to come out of their daze. I was getting so tired of them ignoring the obvious threats, and going on like America has an invincible economy. Reality is a bitch, and our time has come. I think Wall St will drop like a rock next month and all the haters that say that you are stupid and wrong Michael, you will have the last laugh!

  • Proftel


    There were four failed states (Portugal, Spain, Greece and Ireland), Italy and France will come after the next – and then there will be seen that a total implosion of the two pillars (the other being Germany) Euro will collapse.

    The neoliberal these four states had to choose one for “duck” and test their theories.

    Ireland and Spain were soon discarded because of the armed populace has esperiente in fights (with a relatively recent Civil War and another against the British rule even more recent).

    Portugal was also excluded due to the presence of strong trade links with Brazil (which would support as does the USA / England, one supports the other).

    Left Greece because they think the people gentle and peaceful, Mediterranean climate not so susceptible to the rigors of winter and stuff.

    Apparently the thing stinks, forget that Greece is the cradle of Western Democracy. Serious strategy error.

    Before Italy had broken first.


  • Nice article to draw attention to the debt problem that is pervasively growing throughout the entire planet, but unfortunately the article fails to even intimate the real problem behind all these debt problems. The source of the problem is not spending too much money, for matching the economic output of any nation with a corresponding and equitable sum of it’s accepted currency has never been inflationary at the moment of it’s creation, and it never will. The problem is that after the creation, after the loan, after the principle has been issued, the banksters are allowed to collect interest on that principle – BUT THEY NEVER ISSUE THE PRINCIPLE! This creates the mathematical impossibility of ever being able to pay any loan back! And further loans exacerbate the situation by requiring an ever escalating proportion of of subsequent loans to be stripped from their principle just to service the existing debt! The system is fundamentally unsound, and no system, not even gold, which is not prepared to deal with the compounding or even simple interest problem can possibly deal with the situation. The system itself must be rectified.


  • I love how the IMF is usually regarded as the financial savior, when in fact they are owned and controlled by the same people who caused the problem.

    The same elite bankers own and control the IMF, the World Bank, the EU, the Federal Reserve, Goldman Sachs, etc.

    In 2002, Goldman Sachs covertly bought 2.3 billion Euros in Greek debt, converted it into yen and dollars, and then immediately sold it back to Greece at a supposed loss.

    In 2010, Goldman Sachs Group Inc. managed $15 billion of bond sales for Greece after arranging a currency swap that allowed the government to hide the extent of its deficit.

    The IMF lends Greece money to supposedly bail them out, but their austerity measures constrict the economy, so that they can’t pay their debts.

    The EU is only as strong as its weakest link, and I think that they are using their manufactured Greece crisis, to take control of all of the EU countries.

    And I think that they are using Greece as a testing ground to see how well their strategies work, before they cause the same thing to happen in the US.

  • You asked “How would you feel if your pay was reduced by 40 percent?”

    We may soon find out, as Fed Chairman Ben Bernanke has lowered interest rates to zero, expanded our country’s debt obligations with GM/Fannie Mae/Freddie Mac, created more money out of thin air, monetized our own debt via Quantitative Easing, and he has said that his next step is to DEVALUE THE DOLLAR BY 40%. 🙁

  • knightowl77

    As bad as it is, it is going to get worse….much worse…That said, I do not think that you can prepare enough or learn enough in the way survival skill sets….

    We may have years, months or only weeks left to prepare, so get busy….

    More ammo and food on the way

  • Robert

    Michael, the road we’re going down is a four-lane freeway with no speed limit and no bridge at the cliff.

  • Brian

    It’s interesting what the EU is demanding…a 22 percent reduction in the minimum wage. The real honest economists know the minimum wage is a sham,it kills jobs and is sellout ploy to unions. Thomas Sowell goes over this very well in his book “Basic Economics”. You check the American unemployment numbers…they turned up drastically when the minimum wage took its last big jump.

    • Gay Veteran

      yeah, workers should work at Third World level wages


  • Antonio Gonzalez

    Don’t worry everyone in America will go to the heaven.

    • Proftel


      Cubanos, Mexicanos, Venezuelanos também? kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk

  • Yeah, I know what an economic depression looks
    like. Yesterday, I watched video by some guy
    in Sacramento showing all the commercial prop’s
    and residential homes that are abandoned. Every-
    where he went, there were zombie-like people
    just hanging around, doing seemingly nothing.

    These wouldn’t be all those illegal aliens that
    ‘moved’ into California, would it? These people
    have no jobs, no place to live, they ride around
    on ‘ten-speed bicycles’. No wonder the place
    looks like Haiti, or Detroit. Businesses have
    no ‘real’ customer, ones with ‘jobs’, to sell
    to. So they go out of business.

    Sadly, THESE are the people that will be left
    to deal with after TSHTF. All the young,
    strong, people will die in the next war,
    leaving these zombie scum walking around look-
    ing for something to steal.

    Also, where in the HELL do all these so-called
    ‘police’ come from? They must run ads for
    ‘security guards’ in papers, somewhere, and
    get these people to suit up for the clashes.
    These ‘police’ are just fat stupid mouth-
    breathers looking for a minimum-wage paycheck,
    willing to sell out their countrymen. They are
    traitors. It’s just like over in Syria….look,
    their government is KILLING THEM! That means,
    their own brothers and sisters who have joined
    the military are opening fire on them with
    tanks and Ak’s. Don’t think that will happen
    here? It’s just a matter of time.

  • Chris

    If Michael is correct and this is indeed coming to the USA the ruling satanic and luciferian elite must also know this and perhaps this explains the rapid destruction of your liberties and the increased police state nature.
    When you have people and countries in debt you have a level of control over them. Does this explain why the USA appears to be being used mainly as a provider of military muscle to create and enforce the NWO? Who exactly does the USA owe the most?
    Think also about what desperate debt ridden people and nations would be prepared to do to have that debt waived away. What would they be prepared to have imposed on them in return for having the debt lifted? Would they accept Global Government, bow down to a false Global religious ‘leader’ and accept an implanted tracking and cashless payment chip? Is this going to be the catch? Or is it going to be WW3?

    • sven

      THIS is what I have been saying. The Patriot Act, NDAA and house bill 8791 allow for the suspension of civil rights and Constitutional liberties. When it finally happens, you will see Marshall Law and those 49%+ of the population that are on public subsistence, and/or considered not contributing, will be shipped off the FEMA camps under the guise of easier administration of basic services,to be taken care of in terms of food and shelter, and probably sorted as to their potential contribution to society, IE: good workers. That will leave the sick, the in-firmed, old, handicapped,stupid, lazy, criminal, etc. and they will need to become less of a burden on the rest of society. While out of sight of the rest of the workers, they will be eliminated. It has happened before, (Germany, Russia, Cambodia, Africa) it can happen again. Do not make trouble in those coming days.

  • Thomas

    When you see ‘labor union,’ just insert the word ‘Jesuit.’ Interchangeable.

  • DB200

    Suscipio Danaos quidquid donatis ferentis.

    I distrust the Greek even if they bring presents.

    This was taught 2500 years ago. Need I say more?

  • Patriot Alice

    Europe has a political problem, not a financial one….The socialists want to continue living beyond their means on borrowed money, and they want the responsible citizens of Europe to pay for their debt..Europe could print, devalue it’s way out of their financial problem, but the socialists don’t want to change their ways….So, they have a political problem….Live within your means or get out…

    • typo

      you make some good points. If the ideas you mention would have been used at the right time, they wouldn’t be in the mess they are in. BUT, things have progressed so far, that no ammount of cuts, or austerity will cure the problems that Greece has. The whole economy has to fail, and then re set. Then, the country can return to a sensible way of running. Greece needs to go back to their old currency, get out of the Euro, and tell the IMF to go pound sand. But it will probably never happen that way.

  • CIA Broom Closet Monitor #301

    Correction: “as German National Socialist’s deported Jews”

  • Barn Cat

    The US is borrowing money at artificially low interest rates. What it can’t borrow the Federal Reserve prints. It’s only a matter of time before we have hyperinflation like Germany had in the 1920s. Hyperinflation is a 100% certainty. The only question is when.

  • Rodster

    When was the last time you heard a leader say this? “In a TV address, Lucas Papademos said Greece was “just a breath away from Ground Zero”.

    This is what’s coming here and around the world. An economic ground zero aka complete and total collapse.

  • Skeptic

    The US is not even close to Greece in terms of public finances, taxes, or government spending.

    Greece Debt to gdp is 145%, US is 100%

    Greece taxes at 37.7% of gdp, US taxes at 14.4% of gdp.

    Greece spends 48.3% of gdp, US spends 24.6% of gdp.

    As you can see the United States of America has some of the lowest tax collections in the world. We have some of the lowest government spending in the world.

    For the middle class American, scratching their head wondering how we only collect 14.4% of gdp, when they are paying way more, that is the question. Appropriate taxes for the more well off in our society will close our budget deficit over night if that is what we wish to do…….

    • Bone Idle

      When your debt to GDP ratio goes above 80% there is no way back. Ultimate default or collapse is ahead.

      As you pass the 60% on the way to the 80% barrier there is no way of clawing your way back to nominal debt levels except for extreme economic hardship

    • Borsabil

      Why not try and compare like with like? Greece is not a federal state like America. As ever with socialists with an agenda you pick and choose to suit yourself. What is the total tax and spend for all levels of government in the US? Including local, state and federal. What is the total tax take? What is the total debt? Work that out and compare it to Greece.

    • Iddo

      YEAH…I agree. The US is not as big a crack-head as those other countries. Ohhh…but wait a minute… yeah its still a CRACK-CREDIT-HEAD junkie hook on barrowing & living beyond its means. Your statement, “Appropriate taxes for the more well off…” has lost you ALL creditibility. Once anyone has actually done the math, they realize even if the govt took 100% of the “rich” people’s income AND increased taxes on middle class it wouldnt be enough. I think visiting this website in a bad ides FOR YOU. Prehaps you should avoid preparing for any “collapse”. The human gene pool has to get cleared out periodically.

      • Sceptic

        If we got rid of the Bush tax cuts (which are temporary) eliminated the Bush prescription drug program, stopped the payroll tax lowering, exited Iraq and Afghanistan you would be talking about 900 Billion of savings each year. Reform Medicare and Social Security and you are done. Budget balanced or maybe even running a surplus.

        Do the above and start taxing capital gains at ordinary income rates and you will have the national debt paid off in 10 years.

        • Joe

          I still believe a targeted capital gains tax would turn the economy around. Why are we subsidising investment in Asia? Zero capital investment tax in American owned companies with American labor forces. %50 (or whatever figure gives profit advantage to American companies) on capital investment returns from foreign investments or investments in US companies with foreign labor force. The greed driven investors will always put their money where they can profit the most, all other considerations be damned.

    • drago

      your US stats come from the gubbermint, who have a vested interest in portraying a ‘rainbows and lollipops’ view of our finances. do you REALLY beleive all you read in the Lame Stream Media?

    • 007

      You are being very nieve. Greece has this ridiculous tax rate and then the crooked tax collectors do not collect the tax except from the average non connected citizens. The U.S. has a much higher debt to GDP than Greece. We don’t count our accrued entitlement debt while Greece does. Our’s is probably closer to 600% of GDP. Our GDP is massively overstated because of the under reported inflation. What makes you think if hey taxed the “more well off” they would use it to reduce the deficit? They would just increase spending. Face it, we are going over a cliff and the politicians don’t have the guts to even try to change course. Of course the politicians all have parachutes.

    • tak

      you have been brainwashed by gary 2,if we took every penny from every person we would still be in debt do the math

    • rikitikitavi

      Just because Government spending is low doesn’t mean a darn thing.
      And we must ask: “Low spending” relative to what?

      We are the government–or are we ruled by the banking oligarchs?
      “Tax and spend” is what governments are supposed to do– the problem we have seen in our “free” country is that taxes are not spent on services that support the general well being of the citizen.
      Instead-tax subsidies are doled out to billionaire corporations(and the wealthiest entrepreneurs)and no bid “war” contracts awarded to the profiteers.

      Fact: social services, education, and health care proposals are sliced and diced and downsized even as we spend trillions on the misadventures in Iraq and Afghanistan.
      Fact: BP got richer, as did Wal Mart, and Haliburton.
      Fact: The Bail Out of mismanaged (and severely corrupted) financial institutions has never been adequately addressed nor have the con artists and Wall St criminals gone to prison.
      Fact: The Federal Reserve is an international banking program that continues to siphon off treasury instruments to the 1%.

      The fact of the matter is that the “Rogue Capitalist” economic schema we presently embrace creates poverty by design. Propping up the wealthiest people in the world on “swaps” and derivatives smacks of casino gambling. We are pawns even as the wealthiest 1% continue to amass more wealth–analogous to the wealthy elite playing roulette in Monte Carlo.

      Our founding fathers were moved to action once they recognized we were being taxed but not represented by the fat cat monarch of that age.
      Today we have come full circle to Taxation without Representation as we watch our co-opted PAC/Oligarch influenced Federal Guvment dispossess the working poor of their money in order to prop up the richest folks in the land.
      Something stinks…

  • Skeptic

    I will also add that almost every country on the planet taxes at a higher rate, spends at a higher % of gdp, and most have more debt. Every European nation is in far worse shape than the United States of America, including Germany. Japan, worse. China, who cares they are Communist slaves, when their currency trades freely they will go the way of Japan.

    Canada has better public finances and lower taxes than the USA. Go freeze, and when their housing bubble bursts, you will come back.

    • tak

      skeptic,if we in are such good shape as you say why is there talk of qe3,only reason we not in full scale riot now is because when can print money greese cannot plus all the unfunded bills we owe its game over,we barrow 50 cents on every doller the gov spends.if china calls on monday and says we are no longer buying your debt we will be much worse than greese because over here we will not be throwing rocks, people over here are armed to the tilt

  • jsmith

    Let me ask you a question Michael. Are gold and silver coins valuable assets to have in Greece? How about here in the United States?

    • Michael

      Gold and silver coins are always valuable assets.

      But be warned – in the years ahead the price of those coins is likely to go way up and way down. It is going to be quite a rollercoaster ride.


    • mondobeyondo

      They are valuable assets anywhere in the world these days.

  • Sandy CPA

    The math is simple. We owe $15.5 trillion and we add over $1 trillion per year to the debt with our annual deficits under Obama. If we increase taxes it will kill what little recovery we have. The only solution is to cut spending. This is not complicated. Our only hope is to vote against Obama, regardless of who the republican candidate is in November!

    • jeramy

      This is exactly how you lubricate the engine of the hegelian dialect.

    • Borsabil

      Yep, all leftists happily expound two completely contradictory positions. On the one hand government spending adds to GDP (as indeed it does) and so if the government spends more money we will grow GDP and end the recession. On the other hand to pay for that spending we need to tax the ‘rich’, forgetting that increasing taxation subtracts from GDP. You can’t have it both ways, all government can do is take from money from one part of the economy and dump it in another. Government tax and spend is at best neutral to GDP and often negative as these resources are almost always wasted. The only way government can ‘grow’ the economy is by borrowing and spending, which is why we’ve ended up in the giant FUBAR we have now.

      • 007

        There is another way which appears to be the chosen government path. Keep spending and the high deficits. Print money to pay for it. Mislead the public and tell them there is no inflation. Inflate your way out of the debt.

    • Yes, and then Romney will get in and we’ll have a Republican Obama. A little better maybe, but we can’t seem to elect anyone with the guts to turn this ship around.

      • 007

        He will just drive off the cliff at a lower speed. He will also destroy the Republican party. The public will never trust us again or forgive us just handing them Obama lite.

    • drago

      I agree
      (Anyone But the COMMUNIST)

    • Tim

      There really is no way out of the situation we’re in. Nothing will change with the next election. Ron Paul, as much as I support him and would LOVE to see him become our next president, will never be elected, in my opinion. And I’m not sure if it’s because not enough Americans have woken up or if it’s because we really don’t have free elections. I’m inclined to think it’s the latter, but I’m very cautious about that sort of thing. None of the other Republican candidates would be any different than Obama. So TPTB will continue to keep the global financial system propped up for as long as they can. But eventually it will implode. Some very difficult times are ahead.

      • 007

        The truly sad part is that we will be forced to enact most of Paul’s platform eventually because we are broke. It would have been better though if we did it on our own voluntarily. When the Roman empire collapsed it created a vacuum of power and brought about the dark ages.

  • Steve Edward

    Risks were taken by the lenders, i.e. banks.

    The Risk Takers, having lost their bet,
    should suffer the consequences like all risk takers who lost a bet.

    Isn’t that true capitalism?

    Abandoning children on the streets instead of shoveling worthless printed papers (i.e. currencies)down the sewer, possessed by the betting banks, should be the way to go.

    After all, it’s only *********** paper the government printed and gave to the banks to lend out to the Greek People.

    Get a grip people, crying on bent knees for this worthless printed trash, instead of protecting children is as if the victims have been treated as the perpetrators.

    Hey Greek People!!! Print your own currency, and don’t use your banks – let the ******************* die.

    Start your own ‘credit union’ and let the banks and their share holders drop dead, instead of letting your children, your parents, your relatives, and friends die
    for *************** government printed paper.

  • Did anyone of you are seeing that we are being led to a World War III?

    The circus is armed as in 1938, all talking about politics, international agreements, like diplomacy.

    We’ll all be screwed when the first shot is given!

    Get out of urban centers when this occurs. Up here in Brazil we are preparing. The *********** is coming.


  • Proftel


    Sou grato a você pelo que escreve, divulgo no meu Blog aqui no Brasil.


  • Craig

    I hope Whitney Houston was among the redeamed of the Lord. My guess is that she was. Is it impossible for super star type people to live a straight life?

    The Lord put this song on my spirit tonight. It’s a song by Denise Williams:

    • mondobeyondo

      I hope so as well. What a loss of a beautiful and gifted talent.

      There’s a common denominator among the rich and famous though. The old Faustian thing about selling your soul to the devil, in exchange for fame and fortune on earth. It’s been said for everyone from Elvis, to the Beatles, the ‘three J’s’ (Janis Joplin, Jimi Hendrix, and Jim Morrison), and even Amy Winehouse. I sincerely hope Whitney didn’t follow that path.

  • Christian

    In the NY best seller “COLLAPSE” It explains why in past history how this debt, resources, and over taxes has been done before and the effects. It tells me we Don’t learn from history.

  • luis

    dammm crazy things im scare i want my mom dammm im shock the world is a mess stan firm people an will maybe make it

  • chiller

    Good bye Greece. Good bye EU. Good bye greedy, corrupt banks. Good bye corrupt politicians. Good bye world.

  • Ralphieboy

    I live and work in Athens off and on a few months annually, residing in a working class suburb in a tiny apartment. The “riots” occur only in a few square block area in central Athens, Syntagma Square. The vast majority of people do not participate–they are too busy simply trying to survive. And Greeks are survivors with strong family and religious values. My employee there makes excellent income, and with this, he is able to support his very extended family.
    Bug there has long been heavy corruption in the government. Central banks provide hefty funds to politicians who have lavished the population with benefits so as to maintain and increase power. I root the present problem back to the central banks. They knew what they were doing, and they continue to do same to us in the USA via the
    ral Reserve

  • Proftel

    There will be a “reset” logo.

    Probably War, unfortunately.


  • Sceptic

    Sandy CPA. Why do you believe that cutting spending will not lower economic growth? As far as gdp is calculated every dollar of government spending increases gdp output.

    Your statment that we cannot increase taxes but we have to decrease spending is an oxymoron. As a CPA you should know this. This is simple math…

    • 007

      Government spending is terribly inefficient and the money from government spending must be borrowed. This borrowed money takes money that would be available to be invested in the private sector. Even the CBO admits that government spending does not facilitate private sector growth. You are correct that our beurocrats and all of the job killing anti business government spending is added to our GDP calculation to pad the statistic. How insane! All of these beuracrats and their worthless, unproductive and often counter productive services and spending are counted as OVER 24% of our national GDP. How can you not get that this is what is drowning our economy.

  • Otown Right Guy

    This is what happens when you embrace godless communism/socialism and its welfare state like the Greek people did.

    But at least they weren’t pretending to be a Christian nation while dropping bombs on others who were not bothering them. We have worshipped at the altar of the dollar, while we waved the flag as our government committed acts of mass murder and mayhem around the world. America’s “reward” could be a lot worse.

    • Peter

      There is no such thing as a god.

      • tak

        cant think of anything to say to you peter,but one day every knee will bow before GOD and every tongue will confess he is LORD please ask Jesus into your heart today ,bow today and go to heaven or bow to him after the rapture and go to hell,this is not my opinon but the word of GOD

        • metalbuoy

          ******** people like peter… we just elected obama to a second term, and i lost interest in trying to save em…. every man for himself, the racists are about to grab control on us like never before seen since the nazis did it.

  • Arius

    We are watching the death march of the West.

  • jim

    The math is simple. Bush came into office with 5.6 trillion surplus, left with 10 trillion deficit. 15.6 trillion Bush spent. Almost 2 trillion a year increase. Lets get repubs back in there so they can spend twice as much as Obama… Wake up people, Republicrats are all the same they just heard their sheople different and brainwash the easy ones.

    • 007

      Wrong. Obama with democratic control in both houses increased the deficit more than every President combined through Bush’s first term. The democrats are the ones resisting any cuts in government spending. You can have your own opinion but not your own facts.

      • 007

        Here is Obama’s version of cutting spending.

        Obama.. I am on a crash diet. I have only gained 10 pounds last month, and iI weigh just 350 pounds now. Isn’t that great!

        Citizen… You gained 10 pounds that doesn’t sound very good.

        Obama…Oh yea, this is great. You see, I was previously planning to gain 20 pounds so I have cut spending in half. This is big, big progress.

  • Gary2

    Conservatism Thrives on Low Intelligence and Poor Information. Reading many of the replies on this site this is so true. It is hard to believe people can think the way conservatives do. Its akin to believing the world is flat. How could anyone think that way?

    Friends I am passing this along so the conservatives can reassess their world view-you too Michael.

    The Canadian study published last month in the journal Psychological Science, which revealed that people with conservative beliefs are likely to be of low intelligence.


    • Tel

      And what does Socialism thrive on? High intelligence? I guess that’s why Chairman Mao murdered everyone who wore glasses.

      • Gary2

        And what does Socialism thrive on? High intelligence?

        YES-you got something correct for a change!!!

        MAO was communist big difference but like I said conservatives do not understand complex things like the difference between socialism and communism. This is why they use the terms interchangeably.

        You pretty much made my point for me.

    • Rodster

      You have it backwards Gary2 your intelligence speaks pretty loud for what liberalism and socialism can do for humans.

    • Rodster

      When the Greek Socialist Gov’t which is fiscally bankrupt, and i’m looking at you Gary2 who embraces socialism. They are paying benefits to pedophiles, sadomasochists and exhibitionist who are considered disabled.

      That shows the low intelligence level of socialist and liberals. No Conservative would embrace that. Conservatives have higher standards.

      • Lacy

        Gary2 is one of the slackers who think they will get something for nothing.

    • 007

      Typical liberal insulting comment. You will never hear Gary ever try to defend his socialist positions. He will never explain how taxing the rich could ever balance the budget and cure our ailing economy. Instead he simply slanders those who he disagrees with. Of course, the reason he does not try to refute conservative positions is because he can not make a serious argument.

      Gary, I would think you would be much happier in Greece with all those geniuses that created that socialist utopia. Greece…the finished work of socialist policies.

    • Gadabout

      This is not helpful. Undoubitably many conservatives are racists but the majority are not. How is living within your means considered to be an unintelligent idea? Fact is, communism/socialism/marxism has NEVER been successful anywhere.

    • Syrin

      You just can’t help being a moron can you GARY ?

      Liberals genetically predisposed to ignore reality, base decisions on raw emotion:

      Liberals on the wrong side of history and predisposed to tyranny:

      Liberals are racist:

      Hey GARY, I literally have over two dozen more links for this subject. keep trying bigot.

    • Syrin

      Let’s not forget liberals don’t give to charity:

      So at least you react out of emotion, don’t adapyt to reality or history, have a predisposition to tyranny (ALL despots come from the left, it’s called HISTORY GARY), don’t give to charity AND have racist policies.

      WELL DONE !!!

    • Syrin

      By the way, that artivle has already been discredited by the selectuion bias of the authors, GARY!

      Tell me GARY, how smart is the prison pop’l which is 95+% liberal? How about all the welfare dependents, GARY ?!?!?

      See, THAT HUGE voting chunk of YOUR base is NEVER INCLUDED IN THESE STUDIES !!!!!!!!!!!!!!!!!!


  • Peter

    What stops Greece from printing physical Euro’s? Just print billions and billions to get back at Germany.

    Every country has the right to print its own currency. For Greece, that’s the Euro. Let the Greek people spent those Euro’s either in Greece or somewhere else in Europe.

    • 007

      No they can’t print Euros per their deal with the EU. That is their problem. They could start printing their own other currency. However, if they did they would still have to pay back their loans in euros. This has the potential to become like Weimar Germany after WW1.

    • tak

      2nd dumb post from you, only the country with the worlds reserve currency can print money,if greese whats to but oil they need to buy it with dollars they can not buy it with euros, so only US can print money

  • Cinderella Man

    Michael the American Dream website is being censored as of 2 pm MST. I have tried to access the site from my mobile and instead of showing your posts it reads sorry you cant find what your looking for. Very strange.

    • Michael

      It is up for me and I just posted a new article on it.

      If you continue to have problems with it please let me know.


  • mondobeyondo

    Confucius say, “As ‘plastics’ was career choice in 1967 movie ‘The Graduate’, word today shall be ‘Mandarin’. No, not Mandarin oranges. Mandarin Chinese!”

  • Gary2

    Importantly, it shows that prejudice tends not to arise directly from low intelligence but from the conservative ideologies to which people of low intelligence are drawn. Conservative ideology is the “critical pathway” from low intelligence to racism.

    I told you that conservatives are mostly all racist! Study proves it!

    • Rodster

      Stop trolling, you can’t possibly be as stupid as you sound. Geez I hope not or the human race is in deep..deep trouble.

    • mondobeyondo

      The only race that really matters is the 100 meter dash. Hee!

  • Ralphieboy

    So Gary2, does this mean you are a propenent of eugenics, a concept heartily embraced by thr progressive community in the early 20th century?
    Studies are only as accurate as the selective data put into them. As to IQ, i consider those who lack basic reason and logic skills to be of low intelligence, hence I seriously doubt your capability to think critically. You might oick up Eric Hoffeer’s True Belieever, which clearly illustrateshow socialists rely on low intelligence ofcertain groups to enhace, their causes. Most of my friends are highly successful professionals in their respective fields, and all are extremely well read and intelligent. None are liberal, kool aid socialists like yourself.

    If you in fact had the capability for critical, independent thought, you would be fully aware of the fact that no centrally planned economy has ever lasted for long, and always has an ugly end. My guess is that you have never done any in-depth study of economics, and likely have little grasp of history. You obviously lack these fundamental tools, preferring to rely on the tired old mantras of your socialist heros. No worries. History is littered with failures like you. Too bad the rest of us low IQ duncees have to pay for yourr crimes in humanity.

  • Many Americans are confused about how U.S. corporations can be raking in record profits yet not paying any income taxes. The way most of them do it is through the “pass-through.”

    Despite record high corporate profits, about two-thirds of U.S. companies don’t pay a dime in income taxes to the federal government and the percentage of U.S. companies doing this is increasing.

    The ones that still do pay income taxes employ an army of accountants to take advantage of loopholes and to shield profits in complex tax shelters to reduce them as much as possible but let’s look at the ones that don’t pay any income taxes (often despite record profits).

    These companies are called pass-throughs, and rather than taking advantage of tax loopholes by hiring a brigade of accounts, they instead are structured to shuttle company profits along to investors (e.g. other names for “investors” are “shareholders” and “owners”).

    Pass-through companies use a special structure to pass along profits to investors who then are supposed to pay income taxes. Despite taxes for the wealthy being at historically low rates currently, they funnel the money into hedge funds (which Congress says don’t have to declare their values if they are family-owned) and other tax sheltered vehicles.

    Pass-throughs are legal and have been encouraged by Congress and state governments which broadened their scope recently.

    The Wall Street Journal reports that 69 percent of U.S. corporations were organized as nontaxable businesses in 2008, up from 24 percent in 1986, and that the percentage is actually higher when including partnerships and sole proprietors. In total, about 75% of U.S. businesses pay zero income taxes today and that number is rising thanks to the pass-through.

    Large companies are often structured as pass-throughs, with an estimated 60 percent of U.S. businesses with profits of $1 million comprising this category, the largest such percentage in any developed country.

    The profits “pass through” the corporations right into the wealthy’s hedge funds where they pay a less percentage than the middle-class.

    If that wasn’t bad enough, our politicians bestow money grants to them that comes directly out of the pockets of U.S. taxpayers. They also allow our government to process American businesses applications to insource foreign workers to displace American workers and to offshore and outsource American jobs, capital investment, and innovation enmasse to foreign countries and workers. For example, in 2010 the U.S. government processed 422,228 employer applications requesting 851,556 foreign workers in 2010 so American corporations can give foreign workers American jobs right here on U.S. soil.

    Much of the “job growth” claimed is going directly to these insourced foreign workers and immigrants both legal and illegal. The Center for Immigration Studies (CIS) was able to show that in Texas, for example, between 2001 and 2007 81% of all new job growth went to immigrant workers (both legal and illegal) instead of American natural born citizens.

    Our government also enables a broken U.S. immigration system that fostered the establishment of Spanish-speaking immigrant networks all over the SouthWest that block American citizens from working in the U.S. as those jobs go directly to the friends and family of the immigrants bypassing American workers. A UCLA study showed that a weak economy in the state of California was the result of more than two million Spanish-speaking immigrant workers who were receiving their pay off the books without paying taxes. These immigrant networks only hire other immigrants.

    Yet our politicans make what remains of the American worker pay the lion’s share of the country’s bills (the individual income tax has been the largest single source of federal revenue since 1950) afterwards while allowing U.S. businesses to bypass the American worker and offshore/outsource/insource American jobs, capital investment, and innovation to foreign countries and workers.

    Then the politicians look the American people in the eye and tell them we have to reduce taxes on corporations and the wealthy so the country can pay its bills.

  • Doc Strange

    If you are prepping for a post-disaster life, you must have adequate supplies of antibiotics and other prescription meds. It’s hard to get these from most doctors, but there is a solution. Go to and they can help. No controlled substances, but antibiotics and most prescription meds in quantity. I am a satisfied customer and have no connection to them.

  • Kenuck

    Just default..across the board..ALL debt forgiven.Then print some money..give us all a more “boom”, we promise not to piss it all away this time.

  • Jim

    Sorry folks, seems you all have one big problem. Politics. Your so bloody blinded due to these political conflicts, that you all over look the high unemployment, the increasing infaltion and the declining value of the greenback. Every dollar the Federal Reserve prints is reducing the worth of existing greenbacks. Your trying to pay interest with borrowed money, like so many have tried with home credit. One card used to pay a different card, but the dept just gets bigger. Beware, depression is getting ever closer and the Banks are laughing at you all. Guess your all too young to remember how Germany did what the Fed. is doing. Soon it’ll be $1000US for a loaf of bread, if you can find one to buy. I don’t care what your politics are, your bankrupt and sinking.

  • Imm

    This planet will be dark forever….

  • JackTheRipper

    yes something can still be done but will it No because the government is only worried about seeing how long they can put this off instead of solving it…..It’s going to happen people this is something that can not be avoided……I advise all you people living in disbelief, doubt, and fear to wake up and fight for your very survival.

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