Can what is happening in Greece happen here? Can we learn lessons from what is happening in Greece?

“Greece is facing an insolvency crisis. It might yet prove to be the forerunner of disorderly debt default next month in the United States. Greece is definitely not Argentina, whose government managed ten years ago to bail out its citizens by reducing and stretching interest payments on massive debts.

“On paper, things in Greece are at least three times worse than in Argentina. That country’s public debt only ever reached 50 percent of GDP; Greece’s is now 115 percent and rising. That figure represents nearly 14 percent of current GDP. Argentina’s only reached 3 percent.

“With the country tottering on the edge of insolvency, the ranks of Greek citizens who fear pauperisation and social convulsion are understandably swelling.

“Unemployment officially stands at 16 percent; the figure is expected to jump sharply in coming months. Over 40 percent of the under-25s can’t find work; little wonder that some of them have joined the ranks of the so-called “known unknowns”, street fighters prepared to take on the widely-hated police.

“Even the middle classes fear their society is splitting into rich and poor.

“Greeks lucky enough still to have a job have seen their salaries cut and are now facing sharp price hikes, sales tax increases and the compulsory reduction of the minimum wage. Their pension systems are collapsing. Most public services no longer function properly.”

The above passages were taken from a rather lengthy article entitled “Greek debt crisis threatens democracy.” To learn more about the alarming perspective, click to read the entire article.