KMA Land - Young, Congress Monitor Greece's Financial Crisis

News Article

by Mike Peterson

Greece shouldn't expect a bailout from the United States if its economy collapses.

That's the message from Iowa Congressman David Young, who, along with other members of Congress, has been keeping a close watch on the continuing developments concerning Greece's debt crisis. The Van Meter Republican tells KMA News Greece put itself in a bind by rejecting a series of bailout proposals from the European Union.

"The president has been speaking out that a deal must be reached with the creditors in Greece," said Young, "and what possible effect this could have on the global markets of Greece if a deal isn't struck. But, you know, the Greeks voted resoundingly to reject creditors' demands for more austerity. Okay, so be it. That's nice. But, who's going to pay for less austerity then? That's the question."

Young says Greece's debt crisis serves as a lesson to the U.S. and other countries.

"When you spend too much money," he said, "this is what happens if you can't pay it back. So, it's a lesson to be learned for all countries--even the United States."

Young opposes any sort of U.S. involvement in a bailout. Instead, he says Greece should be forced to return to the bargaining table, and to work out an agreement with creditors.

"I don't have an appetite to bail out the Greeks," Young said. "And, I don't hear that coming from any of my colleagues here in the U.S. Congress. We've had situations here in America. If you remember, Detroit went bankrupt, and they were asking for a bailout. Some states were in trouble. We're not doing it for our states, and our municipalities. I don't think we should be doing it for these other countries."

The congressman says it's remains to be seen how a Greek exit from the Eurozone could impact European financial markets. He adds other countries lurking in the background could benefit from Greece's financial collapse.

"You look at Russia and China," he said, "maybe they're watching this and seeing how they could benefit from this. Russian has always been looking for a port of entry in the Mediterranean Sea. What if they strike a deal with Greece, in return for a port. So, it's interest what's going on in the front, and the foreground and background on this."

European Union officials have given Greece until Friday to accept a bailout plan, or face default. Young made his comments in an interview during KMA's 7:35 news segment Wednesday morning.

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