March 24, 2013
Folks China is no longer buying our debt and hasn’t been for a long time, so the FED has been printing $85 Billion/month, then buying our own debt (how’s that work???) and we’re becoming Cyprus only on a bigger scale.
Protect yourself and do it now!
Aloha, Mikie ~just a blogger (fightin’ like a girl)
December 5, 2010
Spain may have it right trying to save itself from the fate already befallen Greece and Ireland (bailed out by the EU and the IMF) and what lies ahead for the entire European Union.
Striking air traffic controllers were threatened Saturday with prison terms under military law. It was nasty medicine for the left leaning Prime Minister Zapatero to choke down as he prides himself on his Socialist ideology and has a history of coziness with the unions. Air traffic controllers were smacked back earlier this year with salaries slashed by half when overtime (at triple pay!!) was restricted. Under the old overtime policies, some controllers were earning nearly $660,000/year with a 20% unemployment rate! Even with reduced overtime and lower salaries controllers make nearly TEN times the average Spanish salary of $26,500.
Sound familiar? It should. The average US federal employee makes $123,000 vs the private sector average of $69,000 (not counting massive benefits for federal workers). Unions are hog-tying both State and municipal government’s ability to make the needed drastic cuts.
The question remains. Will the USA take the bitter medicine in time?
With the shenanigans displayed over the weekend on the Obama tax increases it looks doubtful. How serious it it? Consider this.
Greece comprises only 2% of the GDP for the European Union, the world’s largest economy total of roughly $15.26 trillion. The domino effect of Greece and Ireland failing with Portugal and Spain next, could likely collapse the world’s largest economy. California as the 8th largest economy in the world represents 13% of the US’s GDP of $14.4 trillion. Doing the math, you can see California’s collapse will lead to the US’s financial demise.