{"id":9033,"date":"2011-03-25T11:03:06","date_gmt":"2011-03-25T15:03:06","guid":{"rendered":"http:\/\/cfif.org\/v\/freedom_line_blog\/?p=9033"},"modified":"2011-03-25T11:04:38","modified_gmt":"2011-03-25T15:04:38","slug":"portugal-likely-to-seek-bailout-warnings-for-us-federalism","status":"publish","type":"post","link":"https:\/\/cfif.org\/v\/freedom_line_blog\/9033\/portugal-likely-to-seek-bailout-warnings-for-us-federalism\/","title":{"rendered":"Portugal Likely to Seek Bailout; Warnings for US Federalism?"},"content":{"rendered":"<p>When every opposition group voted down his austerity budget earlier this week, Portugal\u2019s prime minister resigned.\u00a0 Now, the European Union is preparing to <a href=\"http:\/\/www.guardian.co.uk\/business\/2011\/mar\/24\/portugal-bailout-cost-uk-3bn\" target=\"_blank\">bail out a third member nation<\/a> in just over a year.\u00a0 (The other two are Greece and Ireland.)<\/p>\n<p>While the Portuguese mess probably won\u2019t have an immediate fiscal impact on the United States, the EU\u2019s crisis of federalism could soon be felt over here.<\/p>\n<p>States like Illinois and California are teetering on the edge of insolvency after spending like a bunch of reckless European countries.\u00a0 Because of the EU\u2019s shared currency and the effects a default would have on the rest of the federation, the EU feels pressed into covering the costs of some members\u2019 excess.<\/p>\n<p>The same thinking seems likely to migrate across the Atlantic. \u00a0Members of Congress are <a href=\"http:\/\/www.thenewamerican.com\/index.php\/usnews\/politics\/5990-will-congress-create-qstateq-bankruptcy-law\" target=\"_blank\">mulling options like bankruptcy<\/a> for failing state governments, though that risks <a href=\"http:\/\/blogs.edweek.org\/edweek\/state_edwatch\/2011\/02\/governors_rip_congress_bankruptcy_talk.html\" target=\"_blank\">undermining state sovereignty<\/a>.\u00a0 Also, bailouts run the risk of prolonging hard decisions, as well as deepening the dependency of states on the feds.<\/p>\n<p>There are no easy answers, but there are some necessary decisions.\u00a0 Time will tell if those in Sacramento and Springfield can come to better resolutions that the parliament in Lisbon.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When every opposition group voted down his austerity budget earlier this week, Portugal\u2019s prime minister resigned.\u00a0 Now, the European Union is preparing to bail out a third member nation in just over a year.\u00a0 (The other two are Greece and Ireland.) While the Portuguese mess probably won\u2019t have an immediate fiscal impact on the United [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1132,932,70,84,81,59,372,403,1369,394],"class_list":["post-9033","post","type-post","status-publish","format-standard","hentry","category-posts","tag-bailout","tag-bankruptcy","tag-budget","tag-congress","tag-debt","tag-deficit","tag-european-union","tag-financial-crisis","tag-portugal","tag-united-states"],"_links":{"self":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/9033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/comments?post=9033"}],"version-history":[{"count":3,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/9033\/revisions"}],"predecessor-version":[{"id":9035,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/9033\/revisions\/9035"}],"wp:attachment":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/media?parent=9033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/categories?post=9033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/tags?post=9033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}