While visiting Athens, SchiffGold President Mike Freedman spoke with two Greeks about their country’s economic crisis. One had voted “yes” in the July 5th referendum, while the other had voted “no.” His conversations were eye opening and hold important lessons for America. Find Mike’s personal thoughts on the matter below.

Onofrious was born in Northern Greece, but has lived in Athens for 20 years. He works as a state-licensed tour guide. His father was about to begin receiving his monthly pension from the Greek government just as this banking crisis began. Onofrious voted “no” in the July 5th referendum.

Christina is native to Athens, and studied abroad in London as a young girl. She also works in the tourism and hospitality industry, and was raised by frugal parents who never once took out a loan. Christina voted “yes” in the July 5th referendum.

Mike Freedman’s personal thoughts on Greece’s lesson for America:

What struck me the most during these interviews was that neither person really understood how Greece got into this crisis. Nor could many other Greeks I met on my trip explain their predicament.

It seems obvious to me, and to many like-minded people, that the answer is debt.

The Greeks I met were honest, fair, hardworking people. Yet they were seduced by politicians into believing government was somehow exempt from the most basic rules of life. You could get all the benefits from government without paying for them – a free lunch.

But in the end, you can’t spend more than you earn. Not for long, at least. The piper must be paid, sooner or later.

The loans from the European Union will not do much for the people of Greece. Most of the loan money will merely go to pay interest on the previous bail outs.

No matter what happens, Greeks will be in for many years of reduced living standards and much pain and suffering.

Is there a lesson here for America? Of course.

We need to reduce our spending at all levels: federal, state, local, as well as personal.

The early results of our debt obsession are already apparent. Defaults by Detroit and Stockton, California may be the first of many municipal bankruptcies. The state of Illinois is tottering under the burden of underfunded public pensions.

Federal debt has increased enormously in the last ten years, with no end in sight. The interest on United States debt is now one of the largest items in the national budget.

Yet interest rates are at historic lows. If rates return to just normal, the amount spent on debt service will double. This is clearly unsustainable.

Reports vary, but many economists believe social security may run out of money by 2045.

The national governmental simply cannot keep its promises to pay for pensions, healthcare, education, and the like.

Innumerable times throughout history, governments have robbed their citizens of their wealth to pay for government profligacy. From ancient times, when government shaved the edges off their gold coins to rob citizens of their money, to the Weimar Republic, to Cyprus’s looting of private bank accounts in 2013.

Can it happen here? It has already.