Posted by Allison on 16 July 2011, 15:28
One minute we hear news about the debt crisis in Greece. The next minute it’s Ireland that is in trouble. And then there are the worries over Italy and Spain as well. Where will it all end?
A lot of people think the end will be inevitable in the form of the demise of the Euro. But even though this could happen, the bigger question is when? And perhaps another question worth asking at this point would be how much damage would be done before the currency finally did bite the dust.
However we should look a little further afield before writing off the single currency as a failed experiment – albeit one that did last a few years. Apparently America is in a tight spot itself, after it reached the borrowing limit that had previously been agreed upon. The very idea of the US defaulting on its debts is unheard of – quite literally. Can you imagine what would happen if this occurred? And yet it would seem as if we are just a few short days away from this happening.
The US government has to raise the bar for its debt otherwise its credit rating will go down. And with time running out it seems very likely that this could well happen, and it will be forced to join some of the European countries that have been having a rough time financially of late.
So where will it all end? It’s hard to imagine the US being in such dire straits but they are definitely there already. Several European countries are also having problems and it could well be that we see the turmoil continue for a good while yet. It’s sad when you can’t see a way out of such a tough situation, but we could be talking about a period of years before anything major happens.
Needless to say we shall be watching very closely to see what happens next. If the Euro does fall apart we shall be among the first to report it as it goes down.