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I don't know if you can really extrapolate from Greece to the US, but it is relevant to note that by living on credit for so long, Greece wound up in a position
by GiraffeNecktie 15y ago
I don't know if you can really extrapolate from Greece to the US, but it is relevant to note that by living on credit for so long, Greece wound up in a position where they couldn't raise more money. So their GDP grew for years on borrowed money, and now that they can't borrow any more, their GDP is shrinking dramatically. In other words, you can buy an artificial GDP increase today but you may have to sell it back at a discount tomorrow.
- freehunter 15y agoA problem Greece has that the US doesn't have is the Euro. If the US need more money, it prints more money. It causes inflation and that's sometimes a bad thing, but it patches a hole. Greece can't print more Euros. The US can devalue her currency for a long time to keep things running.