The thought of the United States becoming a PIGS type country is very troubling. We should be setting the economic bar for the rest of the world, not leading it to uncertainty. I wonder if Congress passes the "jobs" bill, how much closer that will get us to 100%.

Purple,
Looks like the Senate D's are trying to pass next Monday a "jobs bill" without an actual bill - so far. The cost is "PROJECTED" at under $100 BILLION. Peanuts by Washington standards

What worries me is that a very big part of a default is the perception our creditors may develop about our economic acumen or the intention of our government to control our massive and crippling debt.

What's in the projected bill is the usual government jobs and "tax credits" and unemployment insurance extensions - a real big job maker!

The only thing that historically resolved overwhelming debt is war. Unless the USA can tighten it's belt , the nation will look to extend it's worldwide imperialistic approach and take something over. It's been the same story over and over throughout the history of mankind.

PS...great post TPaine!

Thanks for the insight TPaine! I'll keep a close eye on what happens with the "jobs bill" this Monday.

If the country cannot pay its debts then the burden will go to its citizens by raising tax or adding new taxes. 25% is really close for the country to be included in the PIGS nation. I hope someone in office will do something to avoid this from happening.

Let me elaborate on my original post - as you will see from the following there is absolutely no way we can tax our way out of our National debt crisis. Keep in mind also that California is somewhere north of $540 billion in debt alone with many other states in the same boat, and this debt is NOT calculated into the National or sovereign debt.

The United States government debt, commonly called the "public debt" or the "national debt", is the amount of money owed by the Federal government of the United States to holders of U.S. debt instruments. (Gross Debt is the national debt plus intergovernmental debt obligations or debt held by trust funds like the Social Security Trust Fund. – see unfunded liabilities below) Types of securities sold by the federal government include, but are not limited to, Treasury Bills, Notes, Bonds, TIPS, and United States Savings Bonds.

As of 2007, US public debt as a percentage of GDP ranked 27th highest out of 126 countries. Not any more.

During the administration of President George W. Bush, the total debt increased from $5.6 trillion in January 2001 to $10.7 trillion by December 2008, rising from 54% of GDP to 75% of GDP.

Back in March 2009, the Congressional Budget Office estimated that public debt will rise from 40.8% of GDP in 2008 to 70.1% in 2012. The total debt is projected to continue increasing significantly during President Obama's administration to nearly 100% of GDP, its highest level since World War II. They underestimated the spending frenzy in Congress!

In 2009, according to what source is used, and they vary widely, but the best estimated GDP for 2009 is somewhere around $14,532.5 TRILLION DOLLARS.

In January 2010, again according to what source is used, and they vary widely, but the best estimated calculation of the National, or sovereign, the terms are the same, debt is at least $12,373 TRILLION DOLLARS OR APPROXIMATELY 85% of our GDP and growing rapidly.

Now catch this! The 2011 deficit is estimated to be $1.27 trillion -- down from the record $1.56 trillion in the current year. The deficit -- the gap between budget outlays and tax receipts -- was $1.41 trillion in 2009, more than triple the previous high of $458.6 billion in 2008.

Let’s see; we add $1.27 trillion, plus $1.56 trillion to the current national debt of $12,373 trillion and we get by end of 2011 a national debt of at least $15.13 TRILLION DOLLARS.

That should put us well over the 100% mark since there is no way the GDP will grow enough to offset the debt – but then again, what the hell difference does it make; we’re essentially broke!

Just to add to the misery we have “unfunded liabilities” for Social Security of at least $14.15 trillion; Prescription Drug Program of at least $18.7 trillion; and Medicare of at least $74.45 trillion.

How do we pay for that?

Freedom has hit the nail on the head - war the last resort for bankrupt nations. Who will be the enemy?
(My source for the unfunded liabilities is U.S. Debt Clock.org at http://usdebtclock.org/)

Soros says Greece is just one of many challenges for Euro...Tpaine was onto something in print much earlier than the experts...

http://www.ft.com/cms/s/0/88790e8e-1f16-11df-9584-00144feab49a.html

Strong protests in Greece...

http://www.cnbc.com/id/35556809