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:

• Americans could expect to purchase any European product at a tremendous discount.  Your dollar would go much farther in acquiring the finest Europe has to offer, from French crystal to Italian leather.
• Tourism in such countries as Greece, Spain, Portugal and Italy would go up.  American dollars would flood into their economies.  This would be of tremendous benefit to these areas, and would undoubtedly lead to an increase in their financial stability and growth.
• U.S. producers would benefit by taking advantage of cheaper European exports.

If you believe the negative economists:

• Many American banks have invested too much money into European banks that would no longer be in operation.
• The European financial zones could face an abrupt financial panic.  There would be a possibility for a run on the European banks.
• Inflation will run rampant, and result in the collapse of small, unstable governments.

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.