Raising taxes
So, there is a massive buildup of public debt. And the lesson of history is that unless this buildup of sovereign debt is tackled eventually by raising taxes and controlling spending, then there are only two outcomes: default or high inflation.
Historically, we have seen a series of defaults and sovereign debt crises in both advanced and emerging market economies. If you are a country like the US, the UK or Japan that can monetise its fiscal deficits, then you won't have a sovereign debt event but high inflation that erodes the value of public debt. Inflation is therefore basically a capital transfer from creditors and savers to borrowers and dissavers, essentially from the private sector to the government.





Did Gold Finally Become The World's New Reserve Currency? AGAIN...





The Only Difference For The US From Greece Is That It Can Print More Money








U.S. gold coin sales surge as investors flee risk








Nouriel Roubini: US faces inflation or default








a great Fox News interview with Ron Paul about the Greece-soon-to-be-USA problems.








Could the U.S. Be the Next Greece?








Moody's Warning Portugal of Possible Debt Downgrade








Angela Merkel: EU Future At Stake in Greece Crisis








Peter Foster: Keynesian Contagion- Financial Post








Chinese Markets Slide as Jitters Take Hold








Hundreds Seek to Fill Positions After Illegals Fired








UK Mortgage Lending Dives 83%








Won't be long for this to hit the U.S....Oh wait... it's already starting in Detroit, They asked for the National Guard.


Three Die in Athens Riots Over Cutbacks, Debt Crisis








Greece Debt Crisis Coming to Neighborhood Near You?








Cheaper Gasoline May be Just Down the Road








WOW, I'm sure glad the recession is over...Don't you just love this recovery?

ALL HAIL OBAMA...

Broader Unemployment Rate Increases to 17.1%- Wall Street Journal








US Faces Same Economic Woes As Greece- CNBC








You can add another 100 BILLION we just gve to the IMF to bail out Greece...

Don't worry we will be bailing out the IMF next...

US Banks Heavily Exposed to Europe Debt Woes- CNBC