Greece; Since I moved to, I tried messages, all messages through Greece in local and national U.S. newspapers to America and for the years then find. But after years of failing one to do, I came to the Greece, is really too small - it doesn't matter. This was of course change with 2010 roles...
It is now about two months that shocking surprise my we was bombarded with news about Greece have been. Every day there are one or more stories on the front page of the Wall Street Journal and other newspapers, all analyze the importance of Greece in the European Union in particular and worldwide financial health in General. I have in the last days in Denmark and Germany and one day goes not through Greece in the front, without seeing, middle and back pages of the financial times and other newspapers in languages via the four written can talk personally. So the question is, what makes the center of the universe little tiny Greece, suddenly again? Don't get me wrong, I am thrilled that Greece is daily in the news, but the question is why Greece matter?
Greece is a smaller euro zone economy, maybe 2-3% of GDP, but what is the fact that Greece the euro as their currency and the threat that alone used that Greece, under go shock waves in the financial community, for fear of a country sends down is can take others with similar problems with it as well.
The problem was critical, if Greece announced that its budget deficit as a percentage of GDP, was far beyond what was reported by the previous Government, 12 or 13% to be exact, beyond the required by the Union 3%. You had to learn to very high just look at similar countries Portugal and Spain had budget deficits. The PIGS, as you call it, i.e., Portugal Italy Greece and Spain make for a very unstable economic group that, if its financial obligations towards the community cannot meet unsustainable pressure on the euro with the now well-known consequences. In fact, the euro has gone on a free fall almost overnight as the dominant currency dollar exchange rates that approximately can $1.5, losing more than 5% of its value against the dollar to an eight-month low of $1.3529 as last two months ago and some analysts say, go up to $1.3, or even less.
So what can the mighty US from tiny Greece experience? It is possible that the United States from running or even huge deficits threaten, as the proposed social plans by Obama managing show, face would similar to catastrophic economic situation which would strong and Adversively effects with the dollar, major currencies? Some people claim that this is not possible because unlike the EU, where countries through a single Government are not really legally bound, in the United States to mobilise legal financial resources and will support the States which are in dire straits, which challenged the EU currently using. However, it is not of public finances, the global create chaos, but rather the budget deficits at the national level U.S. are currently huge, historically, create the serious risks and in turn scare away investors - such as China, are looking to expand your newly acquired wealth in productive capital markets. You can already see that current U.S. even, before Mr. of Obama's proposals are approved, removed deficits, investors fear have already looking for safer havens. China is a thing of building his gold stocks rather than investments in U.S. real estate capital.
A country's budget deficits, its rated liabilities to its people and foreign investors to borrow pressure on its ability in the open markets and finally risk seeing their bonds down. This is exactly what Greece happened and what might happen to America when it House be preserved (white) commissioned.
America has used the immense internal capital before recently extreme financial behavior of expenditure, to bail out Wall Street and the automotive industry on the premise were too big to fail. (Dies_war_die_falsche_langfristige_Strategie_die_verpflichtet,_zwei_Auswirkungen_haben:_1) these industries have no incentive to put your House in order and 2) of the US citizen at large are funding this error be forever.
It is interesting to see that Germany, the country, all other economies in Europe, are compared to decided that under no circumstances will Greece reasons this bail-out. In the long run, Greece will have to find his way out of this financial Greek tragedy and a better EU partner. There is no such thing as "too big" or "too small" for that matter, doomed!
Tough times ahead for the United States. It would be a shame if Greece where democracy started could teach a lesson the world and America is where democracy ended. I must be proved wrong for shake of our children.
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