Compared to the US national debt, what these countries owe seems like couch change....
Tom, nice to get it explained. No wonder Norway stays out of the EU! (And we are, so far, not noticing the financial downturn of Europe - yet.)Beep, with 20 % and growing unemployment in Spain alone (and that figure hides the 50 % unemployment of its adolescents), it doesn't matter what they owe: They are facing a depression like the one in the 1930's. With recessions in other European Union countries, it will be hard to shore up the effects of the downturn that is growing in the Mediterranean countries.
We're all broke and we'll all have to default one way or another, whether outright default or currency devaluation. A handful of countries (ahem, Norway) excepted.I think the US will print its way out. Spain, Portugal, France, Germany, Ireland... they'll break from the euro and default. Germany, Denmark and the Netherlands will create a "new euro" system.
Lou, Greece should go back to the drachma so it can use devaluation to help itself. Germany, which had the strongest currency when the Euro was came into use, has been calling the shots. Denmark doesn't use the Euro and I doubt that it would start to in the scenario you suggested.I wonder if Iceland is having second thoughts about giving up its kronur?
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