Greece Is The Word

Greece is one of those countries that seemed to have achieved a model society after democracy was restored there in 1975 following a period of military rule. Like many European countries, it had a generous social welfare system and a stable economy. But the roof caved in almost as quickly as one of its own ruined temples earlier this year when, in the aftermath of a global recession, the Greek government revealed that it couldn't pay its bills. Having borrowed money to keep its overextended public sector afloat, Greece's budget deficit accounted for more than twelve percent of its gross domestic product, four times what the countries of the euro zone allows, and its national debt was reported at $410 billion.

Prime Minister George Papandreou attempted to put together an austerity plan that would raise taxes through the roof, cutting spending to the bone, and laying off public sector employees. Greek workers responded with raucous demonstrations in city streets, and the Greek government has had trouble coming up with a plan to satisfy the European Union. Athens's bid for a bailout of €45 billion ($59.8 billion) has been met with resistance by the Germans, who would pay for the largest share of any bailout, an Greece's credit rating was reduced to junk status.

Any good news in this? Yes. The euro is falling to lows against the U.S. dollar not seen in years.

Americans have often been derided for living beyond their means and letting their country head toward bankruptcy, but the Greeks are even more resistant to tightening the belts, and their crisis stems from spending on the kind of generous social programs Americans can only dream of enjoying. Except that the government can't get the Greek people to agree to any cuts to get their country out of trouble.

The Greeks are trying to get some kind of budget they can present to the EU in an effort to show how serious they are in getting its spending under control in order to get a bailout.

Beware of Greeks bearing gifts.