House of cards.

Some folks are very skilled in putting together a house of cards. It grows and it grows, seemingly defying gravity. The Builder seems immune to physiological needs (or to foibles such as shaking hands) and acts as is the edifice will grow on forever.

Social Democracy is like that. Socialism is a failure economically, so Socialists build an economy built on debt. They maintain the illusion that people do not need to work hard, do not need to invest, save or otherwise inconvenience themselves. All they need to do is keep re-electing Socialists and government benefits will flow.But, just as a house of cards does not grow forever, Social Democracy fails, because debt can not grow on forever.

The house of cards built by Socialists is beginning to fall. Will the fall be swift or slow then accelerate all of a sudden?

Talk of default is everywhere. The measures adopted to stabilize the Greek debt has failed. In fact, Greece is now worse off economically and its deficit has grown, while its ability to repay its debts has shrunk. So, what is the problem with that? The problem is that the debts are partially hidden by European banks owing huge sums to each other. Once a default occurs in one place, it will spread - what the financial world calls "contagion." (Patrice Hill in the Washington Times: Europe debt crises forces nations to make tough calls). Ireland and Portugal are next and even Spain is shake.

Back in the US things are not much better. The US Post Office Service will default on its financial obligations and Democrats threaten to force the County into default if the Debt Ceiling is not raised.

We live in interesting times.