The longer you think about it, the harder and harder it is to see a difference between the situation in the EU right now, and the USA with its various states facing a budget crisis.The only big difference — which is grim — is that Europe is facing a crisis over one of its minor states (Greece), while we’re facing a crisis with our biggest, most economically important state (California).
George Soros is arguing that the Greece crisis exposes the folly of a system whereby states of their own Treasury departments, but share a common currency — again, just like the US.
So this raises a question, which we’ll just toss out to you, will the US eventually adopt some kind of Maastricht Treaty (the treaty the EU countries all signed whereby the agreed to limit their deficits, among other things) that applies to states?
If the US does in fact bail out California, and really, that seems unavoidable, then there would have to be conditions on spending, right?
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