Member states of the European Union find themselves in similarly constrained circumstances because they have included no mechanism to balance competing financial demands among the various member states. Now Germany finds itself leaned upon to help out the southern states, notably Greece Italy Spain and Portugal who find themselves unable to devalue their currency, the shared Euro and who are admitting to have cooked their books over recent years with the help of the ubiquitous gnomes of the evil Goldman Sachs organization which is more and more coming to represent a criminal enterprise.
While the imminent proposed bankruptcy of European states may titillate we should note that without Federal money banks states and businesses would be going bankrupt (or the political equivalent) in far greater numbers than so far seems apparent. Yet there is no general outcry and even the proximate cause of our collective unravelling seems shrouded in mystery. It's actually not mysterious at all, it's just uncomfortable because the economic destruction underway in the United States was caused by the decline of Federal regulation and oversight and no one wants to talk about that because acknowledging that state of affairs would force people to reconsider the value of forcing the federal Government to shrink. It would be harder than ever to screech about shrinking government once you acknowledge the need for stricter oversight.
So now we find the US is not simply swimming in debt, but that there are no plans to cope because no one wants to acknowledge the existence of a problem. The southern European states are considered to be in crisis because their debt as a percentage of Gross Domestic Product is well above 12%. The United States is in that ball park too, and here's a curious thing, Canada that hotbed of firm government regulation and socialized medicine has a debt to GDP ratio of less than 5% which is less than half ours. Australia's is around 4% and they haven't even gone into recession, their economy continues to grow modestly every single quarter. Their homes, like Canada's are retaining their value and they too provide their citizens with nationalized health care.
We, meanwhile, live in a country saddled with war and debt and unemployment, a growing level of inequality, failing services and growing despair mirroring unemployment levels. And now economists suggest we should expect high levels of unemployment to persist probably for years. As banksters hand themselves large bonuses for doing God's work. If I lived in Canada I would be looking south at our porous border and wondering how one would stem the flood of economic refugees to come.