Spain downgraded, Europe debt crisis widens - Yahoo! Finance
Don't want to say I told you so, but I told you so.
"Spain is considered the key to whether Europe's debt crisis can be resolved -- its economy is much larger than that of Greece and Portugal and -- many in the markets postulate -- may be just too big to bail out if it gets into serious trouble."
Who will be next? As I mentioned in an earlier post about unfunded liabilities in the European Union, some like Greece as high as 894% of GDP, it's just a matter of time before the economic crisis engulfs all of Europe. The National Center for Policy Research has this to say about eliminating the national deficit as am means of survival as a country when comparing the European Debt Crisis to US Debt and Deficit spending:
-The United States would need to save and invest an amount equal to 8.2 percent of its GDP beginning now and continuing every year forever to pay expected future benefits without future tax increases.
- This could be accomplished by more than doubling the current 15.3 percent payroll tax on employers and employees, immediately and forever.
- Alternatively, the federal government could immediately stop spending nearly four out of every five dollars on programs other than Social Security and Medicare — eliminating most discretionary spend- ing on such programs as education, national defense, environmental protection and welfare — forever.
Each year that the United States does not take action to reduce the projected shortfall, it grows by more than $1.5 trillion, after adjusting for inflation.
I don't know about you but this sort of hits me between the eyes with a big ole Reality Bat.