GlobalInvestorThe economic turmoil in Greece is a warning shot over America’s economic bow.


The erosion of Greece’s banking system is a microcosm of what’s to come within the United States. The Federal Reserve’s reckless accelerated pace of bond purchases, i.e. debt monetization,  is setting up the U.S. monetary system for an enormous downside correction. Ironically, the Bank of Greece followed the Federal Reserve’s lead by increasing sovereign debt bond purchases for the greater part of a decade. The bank’s intention was to try to stem off deflation which ultimately led to the country not being able to meet its fiscal obligations.

Greece’s defaults on its debt obligations is causing worldwide bond investors to rethink their Greek investments. When guarantees are only as good as the guarantors’ good faith, investors will flock to new safe havens. To top it off, the infighting among European Union leaders and central bank administrators is causing a global ripple effect of eroding confidence. This phenomena could quickly amplify throughout the worldwide central banking system causing other global investors to dump their sovereign bonds.


The United States must take Greece’s queue to get its fiscal house in order. Finding itself in a mature, highly competitive  global market, the U.S.  must reduce its indebtedness in order to keep attracting world investors. Unfortunately, with an ever-expanding multi-trillion dollar federal debt, numerous states on the brink of bankruptcy, presidential leadership that sways with passing political winds, and an explosion of growth in the welfare state, global investors are witnessing the United States slide into the very decay that brought Greece to its economic knees.

Confidence trumps all when winning new investments and maintaining a Nation’s existing financial partners. If the U.S. would like to regain its economic power and halt the flow of it to the east, debt monetization must end!

4 Responses So Far... Leave a Reply:

  1. Better than TV…

    That item was better than a new episode of Burn Notice….

    • Matt says:

      Right on and I’m going to assume your a Burn Notice fan? If so, glad that you got something for it and thank you for your contribution. It’s much appreciated.

  2. I bookmarked this post! Thanks : )