The Greek Debt Crisis
Here are the basics of the story: Greece owes money. The financially stronger European nations that are involved with underwriting it can either continue financing the debt, or they can call it in. At this point, Germany is making noises regarding immediate payment. If this scenario were to play out, the value of the euro would be negatively affected, and greatly devalued.
What would likely happen to the economy in the U.S. if the European economy collapses? Let’s say Germany decides not to play nicely. Greece is called upon to pay its debts. What would this turn of events mean to the average American consumer? Would the economic impact in this country be good or bad for the dollar bill?
If you believe the positive economists:
If you believe the negative economists:
This latest drama is unfolding on the European financial stage. It may illustrate some of the many problems associated with a single European currency. European economists may be discovering that it is impossible to have a single currency when there are many different governments involved.