As the national debt exceeds $16 trillion and the annual deficit is about to exceed $1 trillion for the fifth consecutive year, gasps of disbelief could be heard echoing around the world as President Obama informed the House Speaker John Boehner that America does not have a spending problem.
I expect that the credit rating agencies, who have already downgraded America's credit rating once for not tackling the debt crisis, might disagree.
This is a shocking statement by any standard and it either displays a total ignorance of basic economics or it demonstrates that the fundamental transformation of the American economy from a free enterprise system into a European style socialist system, as promised by Candidate Obama, is about to become a reality.
On the day that the European Union central committee released the latest employment figures it is worth taking look at another country that didn't have a spending problem either.
Greece's ruling dynasty fundamentally transformed their homeland into a socialist economy by growing the government and welfare entitlement benefits financed by deficit spending and borrowing. This racked up insurmountable debts which due to a series of credit rating downgrades, the Greek economy was unable to service.
As has happened with every socialist economy in history, Greece went bankrupt leaving the people and future generations to suffer the consequences. (The politicians themselves got away unscathed with their entitlements intact)
Greece had a deficit of 6% in 2009 which has risen to 12.7% today and a debt to GDP ratio of 162%
America has a deficit of 9% and climbing with a debt ratio of 110% which is also climbing.
Greece has increased the top rate of income tax to 45% on income above $130,000 and abolished all exemptions.
The tax free ceiling before becoming eligible for income tax has been lowered from $15,600 to $6,550 and will abolished in the next budget.
Employers and employees must pay a Social Contribution Tax of 16% with a rate of 19% for blue collar workers.
Value Added Tax (VAT) has been increased from 19 to 23%
Corporation Tax has been decreased from 40% to 20% but is scheduled to be increased to 24%
Not surprisingly tax avoidance in Greece runs at 45%.
The American people must be made aware that the price for this socialist transformation will, as always, be paid by the people.
The latest unemployment for Greece shows that it has risen by 7.1% to 26% and the most depressing statistic of all, and one which American students need to pay particular attention to, is that youth unemployment in Greece now stands at staggering 57.6%.
Without digressing too much from Greece it should be mentioned that the other European economic basket case Spain, also didn't have a spending problem and unemployment there increased by 3.6% to 26.6% with youth unemployment standing at 56.6%.
There is a belief in the world at large that many Americans are suffering from Stockholm Syndrome where the victim falls in love with their abuser.
This was confirmed during the manufactured 'fiscal cliff' crisis when the President and his propaganda machine repeated ad nauseum, that there must be a balanced approach to solving the out of control deficit problem.
Most people understood that to mean that the 'rich' would be asked to pay a little more in taxes and government would in turn would reduce its spending.
The President and the Democrats were being economical with the truth during the negotiations and the GOP swallowed it whole.
There was no outrage from the public at this massive fraud and deceit but to any student of socialist methodology the outcome was predictable, the administration got its way on taxes but gave nothing away on spending.
Looking at the European experience, this is just the beginning. House Minority leader Nancy Pelosi, has already indicated that the government will be looking for more revenue from taxation in the months to come and it can be guaranteed that this extra revenue will not be used to close the deficit or pay down the debt, it will most certainly be spent on new entitlements.
Nancy Pelosi is also repeating to anyone that will listen that the President should bypass the Congress and just raise the debt limit by Executive Order. So is Treasury Secretary Timothy Geitner and a whole host of administration apparatchiks and cronies.
"I would do it in a heartbeat" she is quoted as saying.
This by passing of Congress is obviously the new Democratic Party strategy.
As a political junkie who has looked at governments all over the world, I can't help but admire the efficiency of the Democratic political machine.
Their control over the Main Stream Media is total, their dedication to their agenda is absolute, their plans are thought out to the smallest detail and their strategy for implementation is ruthless.
The GOP is reduced to a fringe party protesting from the sidelines.
To the detriment of freedom lovers the world over America has joined the ever growing list of one party states.