The Greek Problem in the U.S.?

Under the Maastricht Treaty that lead to the European monetary union, budget deficits were limited to 3% of gross domestic product (GDP) and total debt was restricted to 60% of GDP. Greece consistently cheated. France and Germany and others also broke the Treaty agreement.

Ben Bernanke, the head of the Federal Reserve Bank in the U. S., says that total debt of 2% and 3% of gross domestic product (GDP) is sustainable, and we are now there at that level. But the extraordinary Fannie Mae and Freddie Mae debt are not in the federal budget.

So why are we not headed down the same road to disaster? The Obama administration policy will be making our situation far worse than that now destroying the Greek governmental structure, and endangering the European Union.