Maybe The Greeks Have A Good Idea
 

Maybe the Greeks have a good idea. Their newly-elected Socialist prime minister has said that they will not introduce the deep austerity programs demanded by the EU. If they don't relent in their demands for austerity he said, Greece will simply default on its debts.

So what if the U.S. did the same? That might not be all bad. We'd fix the national debt problem in a hurry--reduce it to zero. We'd screw up our biggest economic rival China, who'd suddenly find themselves holding lots of worthless U.S bonds and notes. And we'd also fix the partisan political stalemate in Washington. No one would lend us any more money, so we'd have to balance the budget.

Doesn't sound too bad to me. It might work better than any of the other alternatives. Ahh, those crafty Greeks!

I admit to only spouting headlines there, but is that not the tact that Obama is spearheading at these meetings.....slow down on austerity is what I read.

it seems to me that austerity to repubs means only for the 99%. All the budget proposals I read about ALWAYS include tax cuts fo the richest,increased defense spending and cutting social programs that benefit the middle class. Ryan and the rest want austerity for only me and you. Finally there is not one economist who believes that only austerity is the answer.

All those T-Bills held by DOMESTIC retirees would be worthless. You'd ruin the retirements of untold millions of people.

The credit markets would go NUTS. I can't imagine how many people would be facing foreclosure when their ARMs go up the maximum amount.

The Chinese hold a MINORITY of our debt (less than one-third, last time I heard)