Sen. Gregg: Federal, State Governments Facing Grecian Tragedy In A Few Years

Sen. Judd Gregg, R-N.H., warns that the United States could end up in dire financial straits like Greece's in a few years if it doesn’t cut its deficit and debt — and quickly.

The federal government and state governments are facing massive debts moving forward. States alone are looking at unfunded pension shortfalls for police, emergency, and government workers totaling between $3 trillion and $5 trillion during the next two decades, the Economist magazine reported recently.

"This nation is on a course where if we don’t do something about it, get federal situation, the fiscal policy [under control], we’re Greece. We’re a banana republic," Gregg told CNBC.

"Our status as a nation is threatened by what we’ve got coming at us in the area of deficit and debt. And it’s only a few more years, at the most, that we have to work with here before the market says, ‘Sorry, your currency is something we cannot continue to defend.’"More on this