Will the Greek financial crisis — as well as events in Portugal, Spain and probably Italy — affect America? Will their crisis’ cause a collapse of the euro and destabilize Europe?
At this time, it appears there is only one nation in Europe that seems somewhat stable and that investors can trust: Germany. In addition, investors can support the euro as “credit-worthy” if Germany continues to back up the debt. I read a report about this subject on Newsmax.com, who, make the following claims:
“The current $1 trillion fund …will not satisfy the market once the larger obligations of Spain ($1.6 trillion) and Italy ($2 trillion) come into question, states Newsmax.”
“While conservatives are quick to blame the social welfare policies of Greece and the other Club Med nations for their deficits, the fact is that this increasing level of debt is what inevitably happens when a nation is not allowed to use monetary policy to counter economic downturns.”
Perhaps European events of late sound familiar to us in America, and stand as an example of what happens when a nation’s deficit threatens the stability of their economy — which is the same situation America finds herself.
Because the German-dominated European Central Bank is in charge of interest rates, these troubled nations do not have the ability to use “zero interest” as an option like we’ve seen the Federal Government do in this country.
As a result of the situation these nations find themselves, the only way through a recession is by fiscal policy. Of course, all this does is lead to deficits that are out of control and a debt that cannot be repaid.
To make the problem worse, German voters will likely not favor it’s government assuming the responsibility of other nations’ debts. In that case, the euro is dead and we will see country after country fall — much like the dominoes affect.
Some have spoken about creating a two tier euro, one backed by Germany, but this is merely a euphemism for the end of the single currency for the continent. The next step would lead to “One World Currency”.
Newsmax.com observes that, “Ultimately, those who wanted to broaden the European Union will have trumped those who sought to deepen it and blocked the path to total political unity, at least on a continent-wide basis.”
“This does not mean that trade barriers will return to Europe and it does not preclude deeper ties among the well-behaved nations of northern Europe. But it does mean that the United States of Europe will not come to be.”
“Those who value freedom should heave a sigh of relief at this prospect.”
What do you think will happen to our own economy when Europe and other nations have these problems?
- I suspect that our Trade Agreements will be affected in a number of ways.
- I suspect that Tourism to these countries will change.
- I suspect that our own sovereignty will be affected greatly when our own currency is devalued, so much so that we cannot trade with viable nations in the future.
- I suspect that any of these scenarios will cause a hardship on our nation, but combined, it will be the final blow to our standard of living and America will fall.
People must accept that what happens to other nations affects us in the United States because we are all tied together in world trade and commerce. We cannot expect our government to protect us because they can’t. We will have to protect ourselves and fend for ourselves — all of which means we need to prepare for such an event.
We must store food, non-hybrid seeds that will produce year after year (which hybrid seeds can’t do), at least 1 gallon of water per person per day, emergency supplies, communication equipment, and have an ability for alternative living.
You may want to check out our store at Shop.OurDayShopping.com for items that help you reach these goals.
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