President Obama is focusing his attention on Greece and its financial collapse. Oh no! American taxpayers should brace themselves for another raid on the U.S. Treasury that will ultimately result in even higher taxes as our own debt grows. President Obama is ignoring the many parallels between U.S. and Greece--both are countries with growing budgetary deficits and expanding entitlement programs. The U.S. could learn from the Greek debt crisis, but the President and Democrats in congress, bizarrely, seem determined to put the U.S. on the same path that Greece has followed off the cliff.
The financial problems Greece now faces are dire and their social welfare problems are just as acute. Recent reports cite current government debt at approximately 115% of GDP. And, Greece needs about $160 billion in emergency aid within the next few days in order to prevent a total collapse. Since investors are no longer willing to provide funding to Greece by purchasing bonds, Greece has been forced to come hat-in-hand to the EU and International Monetary Fund (IMF) for an immediate bailout.
How much will Germany and the other financially solvent European states pony up and how much will come from the IMF? That's the question that Germany’s Merkel and President Obama are discussing. You can be sure that Merkel is anxious for the IMF, and not Germany, to be on the hook for most of the cash required.
Americans should be alarmed, for 17% of all IMF funding comes from the US taxpayer, which means that America, at least indirectly, is going to be one of the largest sources of cash to prop up and bailout Greece.