Greece Falls Into ‘Death Spiral’: Rising Debt, No Growth

October 4th, 2011

Greece just needs a central bank and an international community who will look the other way when it buys hundreds of billions of dollars of its own debt. Thousands of nuclear warheads, and a vast network of military bases around the world would also help.

But substitute the word Greece with America anyway. The economic situation is remarkably similar.

Via: Reuters:

Drowning in red ink, Greece has nowhere to turn to revive the economic growth that might put its debt on a sustainable trajectory, reassure angry foreign creditors and offer hope to its recession-weary citizens.

Instead, the country finds itself in a vicious circle—a death spiral, some would say—in which it is borrowing ever more to keep up on its existing debts, crushing growth in the process and thereby worsening its all-important ratio of debt-to-gross domestic product.

Posted in Economy | Top Of Page

One Response to “Greece Falls Into ‘Death Spiral’: Rising Debt, No Growth”

  1. Eileen says:

    Yup, substitute US for Greece.
    This is a good vid from Stars Over Washington, which BTW, holds a place of honor for Cryptogon in its sidebar.

    Video worth watching:
    http://www.youtube.com/watch?v=YTBbcaNLccM&feature=player_embedde

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