Violent protests hit Greece as German backing sought

Violent protests hit Greece as German backing sought

Is this what we should expect to happen in California, New Jersey, Michigan or a host of other states rapidly reaching financial ruin. California is going to have no choice but to default. The economy of California was once the 6th largest in the world, Greece 27th- you do th math and figure out what the effect will be.

Greece has a predominately service economy, which (including tourism) accounts for over 73% of GDP. Almost 9% of the world’s merchant fleet is Greek-owned, making the Greek fleet the largest in the world. Other important sectors include food processing, tobacco, textiles, chemicals (including refineries), pharmaceuticals, cement, glass, telecommunication and transport equipment. Agricultural output has steadily decreased in importance over the last decade, accounting now for only 5% of total GDP. The EU is Greece’s major trading partner, with more than half of all Greek two-way trade being intra-EU. Greece runs a perennial merchandise trade deficit, and 2008 imports totaled $88 billion against exports of $25 billion. Tourism and shipping receipts together with EU transfers make up for much of this deficit.

This is exactly what we have to look forward to in the USA. For the last 25 years we have been exporting all of our manufacturing jobs and creating, as Jimmy Carter foresaw, a "service economy". A country with no manufacturing has no ability to defend itself. Who will build the weapons, tanks, airplanes, ammunition, clothing, temporary housing etc.. Look back to WWII, the reason the USA was so successful was the huge indusrtial manufacturing base. Even Singer Sewing Machine Company and General Motors manufactured rifles for the military.