Sunday, January 23, 2011

The Road to Greece

by J.T. Young

Barron's

January 22, 2011

America is on the road to recreating Greece's recent debt crisis. In just two years, the U.S. national debt has increased more than 50%, relative to the size of our economy.

If a country as small and removed as Greece could generate the tremors that it did in the past year, how much worse would a national debt crisis be in the world's largest economy?

Greece, the world's 27th-largest economy, is a minor player, even in the European Union. Yet a budget deficit of 13.6% of gross domestic product spiked its overall debt to 115% of GDP.

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