The Canary in Europe’s Coal Mine

At the Corner, James C. Capretta writes that Greece’s meltdown could very well foreshadow Europe as a whole:

To survive the demographic tidal wave coming their way, European governments should have been running large primary budget surpluses in the years when their workforces were still growing and paying taxes. But most did not. Now, their choices are far less attractive. If lenders won’t finance their welfare states at preferential rates, European governments will have no choice but to impose even higher taxes on the shrinking number of workers who continue to produce goods and services, or ask those no longer working to cut their consumption dramatically. Either way, it’s a politician’s nightmare.

Which is why it’s hard to blame existing lenders to Europe’s most leveraged countries for becoming increasingly nervous that they could be the ones left holding the bag.

See also, America’s European-styled parentheses states, New York and California.

Speaking of which, “9.9 Percent Unemployment, 99 Vulnerable House Democrats” — Jim Geraghty sees a connection.

Update: Hugh Hewitt on Greece and “The Ghost of Christmas Future.”