Greece.  What a country!

From its storied history as the cradle of democracy to leadership in modern security techniques (allowing stray dogs to sleep atop airport x-ray machines ---no joke), from novel solutions to reduce speeding (traffic lights and stop signs are routinely ignored, resulting in a seven, yes, seven, miles-per-hour average speed in Athens) to having a good old-fashioned rivalry (hating the Turks), there’s something for everyone in Greece.

And to top it all, the legendary Greek work ethic (clock in, coffee, siesta, set up construction cones, break, coffee, siesta, lunch, siesta, ouzo, siesta, afternoon break, double shot ouzo, siesta, remove construction cones, baklava (with ouzo), siesta, clock out) has resulted in Greece being the catalyst for the coming Dark Age in the West. Far be it for anyone to expect Greek workers to put in an honest day’s work, and to suggest increasing retirement age to something beyond what seems like 37.  

Pay no attention to the fact that those asking for commonsense reforms are the ones footing the bill for the Greeks’ lavish, and ultimately unproductive, lifestyle.  That list of benefactors includes countries (such as the United States), financial institutions, investors, and, ultimately, hard-working citizens around the world.

Oh, to be Greek!

                                                                                      *****

Because of the immense entitlements bestowed upon Greek civil service workers, such as lavish holiday pay and early retirement (achieved through Social Security-type compensation packages that blow away those in the States), the Greek government has a problem. The Piper finally came calling, but the government couldn’t pay.  It ran out of money several years ago.

Not wanting to leave a fellow European Union (EU) member twisting in the wind, the EU’s braintrust decided to send a bailout package Greece’s way.  It was a combination of increasing the Euro money supply (contributing to inflation) and using OPM (Other People’s Money). 

And in return for the sacrifice others made for the “greater good” of Greece (such as being asked to forgive 50 percent of Greece’s debt), what was asked of that nation?  Reforms that would, in theory, get Greece back on solid financial footing, if that is even possible for a nation whose debt exceeds an unfathomable 180 percent of its Gross Domestic Product (GDP).

But the bailout was made, with self-congratulatory, albeit clueless, Euro-technocrats preaching that all would be well again.

And things were great, at least in Greece, as the message of austerity was received loud and clear --- with a wink, of course. Translation: “we’ll just continue with Business As Usual.”

And as any fifth grader could have deduced, the Greeks ran out of money -- again and again and again. Not willing to cut their losses, the EU did exactly what Greece knew it would  --- open up its coffers … again and again and again.

We are on the sixth installment of the bailout, still predicated on austerity measures that simply aren’t happening.

And how are the Greek politicians doing in their quest to enact reforms that, while not popular, are necessary if Greece is to avoid default?

Uhhh…put it this way.  Predicting that Kim Kardashian would be divorced after just two months was an infinitely better bet than thinking the Greeks would do the right thing.
 
The latest development, which has been mistakenly called a “bombshell” but was an obvious next step to all but the Euro-geniuses, was the Greek government deciding to pass the buck (again), calling for a voter referendum to see if the Greek people favored  austerity measures.

So let’s see.  The Greek people, who have been violently rioting for years because they don’t want the party to end, are now being asked if they will voluntarily turn off the free-money spigot. Sure they will.

To be fair, the vote won’t be unanimous.  There are probably 30 Turkish expats who will vote Yes just for spite.

Oh to be Greek!

                                                                          *****

The European Financial Stability Facility (an oxymoron if ever there was one) and the European Central Bank continue their insane polices of bailouts and bond-buying initiatives (where they buy bonds of financially weak countries). In addition to the black hole called Greece, Portugal and Ireland have both received bailouts, and, not surprisingly, neither worked.  So more Other People’s Money will be heading their way.

Not to be left out, Italy and Spain are next.  And since they are some of Europe’s big boys, their bailout needs are exponentially greater than those of Greece, Ireland and Portugal combined.

Where does it end?

The most significant, yet least discussed, issue in this entire debacle is that no one is offering solutions to fix the problem. Instead, they are merely buying time so that the can is kicked down the road again, praying the implosion occurs on someone else’s watch. Throw more imaginary money at the problem, say the right things to keep sheep-like investors duped, and don’t get caught holding the bag.

While that plan has worked for decades, too many fundamental economic principles have been violated for far too long to keep the Piper at bay much longer. The Ponzi scheme of socialist-leaning Western economies is quickly approaching implosion status, and when it blows, the 1929 Great Depression will look like a walk in the park.

The crisis certainly cannot be attributed only to Greece; they just happen to be the poster boy for what happens when socialism and laziness trump free markets and personal initiative. 

Greek Prime Minister George Papandreou’s push for a referendum is being labeled a high-stakes gamble, described as a bet that the Europeans’ prior bailouts have them in so deep that even if the Greek voters reject austerity, the bailouts will continue. The alternative, we are told, is far worse: no more bailouts will result in default.

But the truth, which no one seems willing to admit, is what transpires in Greece doesn’t matter.  Given the complete lack of will of America and Europe (and the absence of an even basic understanding of economic principles), an unprecedented crash and massive social unrest is inevitable.

This is no longer conjecture, but reality grounded in cold, hard facts. 

Ultimately, even Bernie Madoff was forced to confess to a Ponzi scheme.  When will reality force our leaders to do the same? 
 
The writing is on the wall, and it is anything but Greek.
 
Chris Freind is an independent columnist, television/radio commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com  His self-syndicated model has earned him the largest cumulative media voice in Pennsylvania. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

In a recent speech, Philadelphia Mayor Michael Nutter urged college students to stay in the city after graduation, stating, “we have a more knowledge-based workforce here."

Too bad we don’t have a “knowledge-based government.”

Nutter boosted Philadelphia by saying the budget was balanced, praising the federal stimulus bill for keeping the city solvent.

"We would be in a depression (without it). There's no question about that,” he said.

Wrong verb, Mr. Mayor.

Since Philadelphia is already insolvent, there are only two explanations for Nutter’s incoherence:

1)      He has no idea how dire his city’s situation has become, or

2)      He absolutely knows, but will use smoke-and-mirror tactics to get re-elected next year, passing the buck to his successor four years down the line.

Here’s betting on the latter.

*****

Nutter’s 2007 election was met with great fanfare from business leaders, city residents and even suburban folks. They naively believed Nutter would usher in a new era by cutting taxes, slashing bureaucracy and playing hardball with out-of-control union leaders.

Uh…hello?  

This was Michael Nutter we were talking about, after all.  As a City Councilman, he voted for bill after bill which sunk the city further into the abyss, increasing the mass exodus of companies and people --- and their revenue --- from the City of Brotherly Love.  

As a result, the city achieved the distinction of having the highest murder, violence and poverty rates, while leading the way in school drop-outs.

As Mayor, Nutter’s track record hasn’t been more of the same. 

It’s worse.

Crime is rampant (such as flash mobs wreaking havoc in Center City), the unions are getting contracts the city can’t afford, public schools are deathtraps where survival is the ONLY order of the day, the government workforce has swelled, and the city pension is bankrupt.

Yes, bankrupt.

And we’re supposed to expect college grads to actually stay here? 

Nutter’s own twisted logic tells us everything we need to know --- the stimulus staved off a depression.

And now that it’s gone, what’s the plan?  He’s on his own, the bailouts are over, and the rent is due. 

But if he can hold off a challenger next year, life is good.

Until the Molotov cocktails start flying.

*****

Whenever a government official admits something isn’t good, the reality is always worse.

In Philadelphia’s case, the Mayor has conceded that the city pension is somewhat underfunded.

Translation: it is insolvent.  Officials state that the pension is 45 percent funded, meaning that for every dollar owed, the fund has 45 cents in its coffers.

That level is considered catastrophically low, and anyone with one eye open knows accounting gimmicks can easily inflate that number.  In reality, it’s most certainly lower. 

According to last week’s Financial Times, of all American cities, Philadelphia has the most immediate cause for concern because “…current pension assets for plans sponsored by Philadelphia can only pay for promised benefits through 2015…”

So in a few short years, with not enough money coming in to pay those owed pensions, the city will be forced to send out letters that could read something like this:

“Dear Retired Police Officer,

Sorry, we didn’t exactly manage your pension very well.  Actually, we bankrupted it by paying for our pet projects and not funding it when we should have.  But hey, stuff happens!  Here’s 40 percent of what you’re owed.  We hear Wal-Mart may be hiring greeters, so good luck to you, and thanks for your service….”

Think it can’t happen?

It did in Greece, and riots shook that country for months on end, bringing the government to the edge of collapse.  Only when the European Union and International Monetary Fund stepped in did Greece somewhat stabilize, although it is still in an extremely tenuous position.

But there’s no bailout in Philadelphia’s future.

What Nutter and the political insiders don’t yet comprehend is that the rules of the traditional game are over --- period. In years past, Philly always looked to the state and the feds for bailouts, and usually got them.  

But this recession is different, and things will get considerably worse before they get better.  That means Business As Usual handouts won’t be coming.

Pennsylvania, facing a deficit of over $5 billion, is out of the bailout business.  And forget the U.S. government, with its $14 trillion debt; under soon-to-be Republican control, it too will be taking a pass.

Hence the riots that inevitably will sweep through the city. 

While our men in Blue are honorable, don’t count on them aggressively stopping their retired brothers who received the short end of the stick, especially since current city workers ---including police --- will have virtually NO retirement benefits coming their way. 

*****

Nutter’s answer to reverse this crisis?   Raise revenue by hiking the city portion of the state sales tax 100 percent and defer pension payments for two years.  In Year Three --- conveniently after he is reelected --- the Mayor will write a check for $800 million to bail out the pension.  Or so his plan goes.

The only problem is that there’s not a snowball’s chance of that happening.  None.

To recap: there will be no bailout, and the pension will implode, leading to massive unrest. 

Short of the city officially declaring bankruptcy --- which is much easier said than done, and would lead to a host of other problems --- Philadelphia will further descend into chaos, being rightfully viewed as a Third-World city.

And to think all of it could have been avoided.

Mayor Nutter and City Council, like so many politicians, incorrectly believe that government and “government money” creates jobs and wealth, when in reality, the exact opposite is true. 

Government creates nothing, nor should it.  Rather, it’s free people in a competitive environment who are the engine of a thriving democratic society.   Government should be there to serve the people, not the other way around.  Nowhere is that more apparent than in once-great cities like Philadelphia, where the economic lights are on their last flicker.

The beauty of math is that it doesn’t lie.  Two plus two will always equal four --- whether one chooses to admit that or not.  Likewise, out-of-touch politicians like Michael Nutter can pretend that all is rosy in Philadelphia, promising an empty bill of goods to our children. But just because he chooses not to acknowledge the real problems doesn’t mean they’re not there.

Amazingly, many residents, especially those expecting their pensions, still haven’t caught on to his Philly Two-Step. They too, are equally at fault for not demanding more accountability of their leaders, preferring to live in a Fantasyland belief that, at the end of the day, their pension ---their lifeblood --- will be there, intact.

How wrong they are.

And no amount of rioting is going to change that fact.

Here’s an idea.  Wake up, and send Mayor Nutter a message next year that the pillaging of his citizens is coming to an end.  Send him packing and elect a bold leader willing to right the ship, regardless of political fallout.

Anything else is just bad math.

Chris Freind is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries and all fifty states. His work has been referenced in numerous publications including The Wall Street Journal, National Review Online, foreign newspapers, and in Dick Morris' recent bestseller "Catastrophe."

Freind, whose column appears nationally in Newsmax, also serves as a guest commentator on Philadelphia-area talk radio shows, and makes numerous other television and radio appearances, most notably on FOX.  He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it