Could We Suffer The Same Fate As Greece?

Too Much CreditBy now, you have no doubt heard about the debt crisis in Greece.  I can’t help but wonder what that means for us.  While it may be a few months, or even years, before the effect of what has happened is known, we should be wary of the road ahead for us.

Here are a couple of posts that talk about what has happened:

Europe’s new debt crisis agreement: the good, the bad, the ugly

curiouscapitalist.blogs.time.com10/27/11

Sometimes I think the euro zone debt crisis is like watching a remake of the Bill Murray classic Groundhog Day, with the screenplay written by Financial Times correspondents.

Europe seals deal to contain debt crisis | The Raw Story

www.rawstory.com10/27/11

Europe sealed a last-ditch deal Thursday to fix its festering debt crisis, shoring up its bailout fund, pledging new funds for Greece and pushing banks to share the pain at a summit vital to the health of the global economy.

It seems to me that what has transpired so far is just a stop-gap measure.  Greece has a rough road ahead of them.  Their economy does not seem to be improving, which has to happen for them to get on stable footing.

But here’s the thing that really worries me… Could the US be heading toward a similar fate?

US Debt a Burden for Our Generation

stanfordreview.org9/21/11

Over the past several months, Democrats and Republicans have hotly debated the threat of defaulting on the public debt. The discussion culminated on Aug. 2, 2011, when Congress passed legislation to increase the United

News Letter Journal » The US Debt Crisis: Superior News And

www.inrubenwetrusted.com10/27/11

The US Debt Crisis: Superior News And Lousy News. Very well people, the proverbial snowball is going to carry on to maintain rolling down the mountain. With the debt ceiling agreement deadline looming, it appears like the

To me, the US seems to be heading towards a possible default on outstanding loans. Sure, we raise the debt ceiling. But at some point, these debts have to be paid, right?

In our personal finances, we can’t just keep borrowing and borrowing money.  At some point, that debt eventually crushes us.  Eventually, banks will stop lending us money.  But if we want to get free of that debt, we have to start spending less than we make, cut back on waste, and start paying off that debt.

But just where is the waste in our government’s spending?  That’s the hard thing to say.  Many of the things we take for granted have huge governmental support.  Medicare, Social Security, Welfare, roads, national parks, national defense… Where do we cut?  Cut from the military, and we hamper our ability to defend ourselves and our allies.  (Yeah… I know… we get into some things we have no business getting into… but that’s another argument.) Cut from roads, and people have trouble getting from place to place.  So many ways we use governmental services — but there are ways in which even some of these services have waste.

I’m not saying I have the answers.  I don’t.  But I do believe that if the US were to default on the money that it owes, it can’t be that good, and the recession we are in could get worse.  Maybe it might be time to stop relying on the government and find ways to help ourselves, and those we love.

What do you think about the debt crisis?  How do you think it can affect you and what do you think we can do to avoid it?  Share your comments below!

14 comments… add one

  • Candice Michelle October 28, 2011, 4:44 am

    Sad, but true the national debt is annually increasing. I don’t know what is wrong with the government and they still can’t put an end to this issue. They are the ones who are responsible for the national debt, but why we are the ones who have to suffer from it.
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  • Grady Pruitt October 29, 2011, 11:50 am

    So true, Candice. Wouldn’t it be great if we could just “raise” our personal debt ceiling any time we chose so we didn’t default on loans? Yet it doesn’t work that way. If banks were lending to the government the way they lend to people, the government would be considered an extremely high risk loan.

    Thanks for your comments!

    Reply
  • Candice Michelle January 11, 2012, 1:07 am

    Almost 3 months had passed from my first comment to this post, and apparently there are no significant improvements to our national debt. It’s just a same issue, different day story. I just hope by the time my kids had grown up, they are no longer suffering this burden. I just hope so.
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  • Grady Pruitt January 15, 2012, 11:58 pm

    Somehow, I think there are some issues that may go away for a while, but will somehow resurface… and how our nation deals with debt just might be one of them. Thanks for the comments!

    Reply
  • Bryce Christiansen October 28, 2011, 1:19 pm

    The article from Stanford was particularly interesting. I knew our generation already had the responsibility to pay other’s social security, now we may have to take on the responsibility of the nation’s debt.

    Very interesting, and hopefully we can grow beyond this.

    Bryce
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  • Grady Pruitt October 29, 2011, 11:54 am

    You know, I keep hearing about how the government needs to balance the budget — but no one seems to be taking responsibility for doing it. Supposedly, we had a surplus under Clinton, but did we? Seems like we’ll never really know. What’s bound to happen to us is all these great services that we have grown accustomed to having (some even “live” off of) are going to collapse and bring us down. It’s sad, but unless something changes in our course, it’s true.

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  • Chris Antonelli@Herndon va homes for sale October 28, 2011, 2:11 pm

    Even at a personal level people always hate debts. When you are in debt you are always stressed up. It is sad to hear that Greece is undergoing such a hard time but there is still hope for them. At times debts are inevitable but we should try to clear them as soon as possible so as to avoid financial crisis. About USA heading towards that direction I can not tell but time will tell.

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  • Grady Pruitt October 29, 2011, 12:04 pm

    I agree that we should steer clear of debts as much as possible. Too bad the government doesn’t think this way.

    Now, I don’t know how accurate this graph from Heritage.org is, or if ti was designed to “prove a point”, but this is a little scary:

    Thanks for your comments, Chris!

    Reply
  • Rosie @ Dentist Los Angeles October 31, 2011, 1:57 pm

    To catch myself up on the topic I youtubed Greece debt crisis and found this funny many talking about it…. he sums it up and talks a little about our debt too. Thought you might be interested too:
    http://www.youtube.com/watch?v=mEVqeaFHsHE

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  • Grady Pruitt November 1, 2011, 2:36 am

    That was pretty funny, Rosie, though I’m not sure how much of that I agree with. Though I do agree with him that we are a long way from having a balanced budget.

    Thanks for sharing!

    Reply
  • Robyn@Leverage Formula December 23, 2011, 10:03 am

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  • Grady Pruitt December 24, 2011, 1:30 am

    I’m glad you are enjoying my blog, Robyn. I don’t normally approve and reply to “off topic” posts, but decided to here so I could answer your question. I am willing to consider guest posts. If you look in the “About” area, you can find information on guidelines to follow and how to submit a request. I look forward to hearing from you (or anyone else who wants to do a guest post here)!

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  • Cary@first source bank February 16, 2012, 3:42 am

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  • Grady Pruitt February 17, 2012, 4:20 am

    Okay… I don’t often respond to posts like this. In fact, they often get deleted. But if you have found a spelling error, you can always contact me through the contact form under the About Me page to let me know. Same if you’re experiencing a specific problem with a page. (With the latter, the more details you can provide to help me track down the problem, the better.) As to the spelling issue, please keep in mind that there are some spelling variances between American (US) and British (UK) English, and that 90% of the “errors” might fall under this. I do check the spelling of all my work and do the best I can to make sure that it is accurate, but if I have really messed something up and not caught it, please, let me know specifics! Thanks!

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