Like a house of cards, the European Union is wobbling with the slightest tremor that tests it. Debt ridden states within the EU body are going through the birth pains of debt consolidation, but their solutions only mask the problem. Soon enough the time will come when a swift nudge knocks a few cards loose causing the entire stack to come crumbling down. Collapse is inevitable if the EU continues to go down the path it is headed. It is not a matter of if but when and the United States is in the same predicament.
European Union countries are tightly wired together economically. The collapse of one state within the union would have ripple effects throughout Europe and the world. Evidence of such a fact has been making headlines for months now, starting with Greece.
The most noticeable birth pains in Europe started in Greece. With a debt-to-GDP ratio exceeding 186%, more than double that of the United States, it’s not hard to understand why they are suffering from financial strains. As soon as Greek bond market started collapsing, the bearish wave hit world financial markets quickly causing stock prices to take a dive. Of course that is all it took for other EU states to band together with the United States and the International Monterey Fund to bail the poor Greeks out.
All is well then, right? Other than the labor organizations that rioted after the Greek government was forced to make deep cuts in spending and benefits that resulted in the destruction of people and property, no! Ireland was next.
Ireland upped the ante in the European bailout game. Its debt-to-GDP ratio dwarfs Greece at 989%! That is more than five times Greece and ten times the United States. Like Greece their crippling debt began to shake the bond markets causing interest rates to near 10 percent. Also like Greece, the obvious solution to this problem for the European Union was… (drum roll please) …another bailout! Ireland accepted the $90 billion that commanded a 5.8 percent interest rate. And again like the Greeks, the Fighting Irish took to the streets in violent protests against the government’s bailout deal.
This situation is not all that different from the United States. Actually, it’s very much related and the same question is in everyone’s mind – “When does it (bailouts) stop?” That, in my mind, is the wrong question to be asking. The question we should be asking is “What are these bailouts attempting to build?” Speaking at a European Union Council meeting, Nigel Farage sharply explains:
It’s all about the utopian society. For Europe, that utopia is a supreme and united European Union state. Whether it costs lives, freedoms, or billions of taxpayer dollars they will make sure it happens. To make matters worse, the United States is backing this by promising to increase its commitment to the International Monterey Fund’s bailout efforts in Europe. After all, what do we need the money for?
As I pointed out before, the European Union problem is also an American problem. Other than our obvious economic ties, our country is headed on the same track Europe is now realizing (again) ends in turmoil. Years of progressive ideas and programs have infiltrated our government, swelling the size of government beyond what its constitutional mandate and its functioning ability, but for what purpose?
I suppose if you ask that question to many of the leading progressives you’ll get different answers. George Soros would state his plans for a global society without borders. Van Jones would prefer a radical communist state. Andy Stern likely would agree with Van Jones to the global socialist extent. And the list goes on, but one thing is for sure – none their utopian societies ends up with man’s freedom being expanded. In fact, history proves they end up in tyranny.
Just as Farage stated, the utopian society will fail. Eventually the money for bailouts will dry up. That is obvious! Other than Greek and Ireland, Europe still has to worry about Portugal, Spain, and who knows who else. As those cards crumble, they will take the entire European Union down with them.
Will that be the same story in the United States? As the broad stimulus packages continue to prove their failure, will the federal government the move to bailout individual states as they start to default? California, Illinois, New York, they cannot print money like the feds can. If so, to what end? Freedom or tyranny?