Greece is Slipping Away

One of my part-time endeavors is driving a shuttle bus at the local airport. Last night, I picked up a lady returning here after working and living in Greece for the past six years. She painted a picture of total chaos: rioting, rampant unemployment after nearly five years in recession, mass withdrawals of bank deposits (nearly 1 billion Euros have been withdrawn just this week), political turmoil, and citizen anger over the austerity measures proposed to allow Greece to stay within the European Union while receiving huge loans from other EU member nations.

Hold the ouzo; the party's about over.

It was an interesting, but very short discussion since it's only one mile from the terminal building to the parking lot. Arriving at her car, I mentioned my fears of the same types of economic malaise for our country. Her opinion?

We're traveling down the same disastrous path.

U.S. Debt Limit History

The following chart shows the growth of statutory limits on our federal debt (the Debt Ceiling), from 1940 - 2010. That's one whale of a mountain climb over the past 20 years.

Source: U.S. Office of Management and Budget,
http://www.whitehouse.gov/omb/budget/Historicals/
by way of The Big Picture blog

You may have a home mortgage, maybe an auto loan, perhaps a student loan balance, and—God forbid—credit card debt, but an increase in personal household debt like that shown above would bankrupt average Joe Q. Public. Is it going to be any different for our own U.S. of A. down the road?

No matter the amount of finger-pointing and jockeying going on in Washington, that limit will have to be raised again this summer. The real question needing an answer is when will they put ridiculous political rhetoric aside and begin to take the necessary, difficult steps to start turning this ship around? Just like a 1,000-foot ore carrier, a change of course is a very slow, deliberate process. Without tough decisions very soon, decisions that will affect each and every one of us, that change will never happen in time to avoid the iceberg.