The same scenario threatens Europe, especially in troubled Eurozone countries and Latvia where wages were slashed 30% and people haven't enough to live on.
The more pounds of flesh extracted, the less able economies can grow. Greeks must either leave or rebel. The alternative's letting politicians and bankers bleed them dry. There's no in between, and what's happening there's heading for Portugal, Italy, Spain, Ireland, and eventually all Europe, Britain, and America.
Class war rages. Western society futures face high unemployment, poverty, less government help, low pay for employed workers, few if any benefits, and higher prices for basic services like food, healthcare, transportation, electricity, heating oil, and water.
Households with below subsistence incomes will be hard-pressed to survive, and governments don't care enough to help. They're extracting maximum wealth to pay bankers and force austerity when stimulus is needed to create jobs and growth.
At the same time, while the Fed and ECB can print money, they can't create wealth by letting bankers use it for speculation, greater consolidation, and big bonuses.
Greece is ground zero, a poster child for destructive economic/political policy. Austerity destroys growth. Its depression level exceeds the worst of America's 1930s.
Government then created jobs. In Greece, they're vanishing and with them the ability to survive. Moreover, bankers impose impossible demands. New ones add greater burdens. At issue, of course, is bleeding Greece dry en route to entirely destroying its economy and people.
Despite contracting nearly 20% since 2007, former senior World Bank official Uri Dasash expects further decline to 30%. No matter, EU/IMF/ECB Troika bandits demand continued wealth extraction until bled dry Greece collapses. Then expect greater pillage elsewhere.
America's future looks no better. Around $2.2 trillion in deficit cuts are mandated post-November 2012. Expect weak economic conditions to worsen en route to greater trouble when another $4 trillion in cuts are made.
Progressive Radio News Hour regular/economist Jack Rasmus says downturns only reverse two ways - by reflating economies stimulatively or liquidating bad assets.
Since crisis conditions began in late 2007, Fed policy struck out. Instead of stimulating growth, it gave bankers trillions of dollars, bought their toxic debt at near full purchase price (instead of around 15 cents on the dollar), and fueled global speculation.
Moreover, instead of liquidating bad debt, banks were rescued by lavish funding even though they're technically insolvent. Toxic debt's still there, and the public's on the hook for amounts the Fed bought.
As a result, the public sector's fragile like banks, says Rasmus. People are paying for their losses. Greece is the epicenter of global pillage, but it's heading across Europe toward America and will arrive with a bang.
A Final Comment
Obama's proposed budget imposes hundreds of billions in social spending cuts at the worst possible time. It adds another $638 billion to already agreed on $1 trillion in cuts over 10 years.
Medicare and Medicaid are hardest hit. Obama wants another $360 billion cut besides earlier reductions. Healthcare providers will be most impacted. As a result, fewer doctors and hospitals will treat patients for payments not covering their opportunity and out-of-pocket costs.