Gingrich: This is a government bubble soon to burst

We have been in a long cycle of government employee unions, bureaucracies, and politicians building systems that are more and more expensive, more and more inflexible and more and more incapable of meeting the challenges of the modern world. This process has affected Europe and Japan as well as America.

Its final, collapsing phase is being signaled by the Greek debt crisis, the Japanese 21 year cycle of deflation and slow growth and the financial crises in many of our state capitals, of which Sacramento and Albany are the biggest examples.

The Obama-Pelosi-Reid Secular-Socialist Machine is making the bubble problem bigger and more dangerous, but this is simply the last phase of a long process of unionization, bureaucratization and steadily rising costs of government.

Today government has become the fourth recent bubble.

The first three bubbles were information technology in 1999, housing in 2007 and Wall Street in 2008.

Looking back everyone wonders why we didn’t see those three bubbles coming.

The failure to anticipate them and to take appropriate, corrective steps before it was too late has caused enormous pain in the American economy and for the American people.

This fourth bubble is even bigger and more dangerous. If we don’t get state, federal and local spending under control we will have a wave of crises that will shatter our economy with higher interest rates and a series of state and local defaults.