Greece; Since I moved to the United States and for years thereafter, I've been trying to find news, any news about Greece at the local and national newspapers of the United States. But after years of not doing so, I came to the realization that Greece, is really too small – no matter. Of course, this was changed with the successive 2010...
It has now been about two months, my shocking surprise us we've been bombarded with news about Greece. Every day, there are stories of one or more on the first page of the Wall Street Journal and other newspapers, all analyse in particular the importance of Greece in the European Union and the health of the financial world in general. I have spent the last days in Denmark and Germany, and one day does not go without seeing Greece in front, middle and back pages of the Financial Times and other newspapers written in languages over the four that can speak personally.So the question is, what makes little-tiny Greece, suddenly the center of the universe again? don't get me wrong, I am delighted that Greece is in the news every day, but the question is why matters the Greece?
Greece is a minor, euro-area economy maybe 2-3% of GDP, but what matters is the fact that Greece uses the euro as its currency and the threat that only Greece can go sends shock waves to the financial community for fear of a country falling can make other countries with similar problems with her as well.
The issue became critical when Greece announced that its budget deficit as percentage of GDP, was the way than what was reported by the previous administration, 12 or 13% to be exact, way above the required by the Union of 3%.Sólo had to look similar countries as Portugal and Spain to see also had very high budget deficits. Pigs, as they call them, i.e. it Portugal, Italy, Greece Spain make for a very unstable economic group, which, if not to meet their financial obligations to the community puts unsustainable pressure on the euro with the consequences now known. Indeed, the euro has been in a free fall almost all night, being the dominant with around dollar exchange rates currency $1.5, losing more than 5% of its value against the dollar, a minimum of eight months of $1.3529 as recently as two months ago and some analysts predict can go up to $1.3, or even less.
So what can the powerful United States learn from small Greece? Is possible that the United States for execution, or even threatening to huge deficits, as shown in the social plans proposed by the administration of Obama, faced similar disastrous economic situation would severely and adversively affect the dollar-versus the major currencies? some people argue that this is not possible because unlike the European Union where countries are not obligated legally actually by a single Government, United States legally can mobilize financial resources and help States that are in a desperate situation, something which the EU is currently challenged with.However, it is not chaos who create global budgets but rather deficits which are currently huge by historical standards create serious risks and in turn scare away investors, as China, seeking to expand its wealth recently acquired in the capital markets more productivos.Ya can see U.S. federally than the current deficit in U.S., even before the approval of the proposals of Mr. Obama have frightened away investors seeking already safest refuges. China one hand is to build its stocks of gold instead of investing in capital goods United States roots.
Budget deficit country rated liabilities to its people and foreign investors, exert pressure on its ability to borrow in open markets and eventually risk seeing their bonds down.This is exactly what has happened to Greece and what can happen to the United States, if not to put order in their home (white).
America has recently used financial behavior extreme by capital spending enormous internal to rescue Wall Street and the automotive industry on the premise that were too big to fail.(Se_trata_de_la_estrategia_de_equivocado_a_largo_plazo_que_tendrá_dos_efectos:_1) these industries have no incentive to put order in their House, and 2) United States citizens in general are funding this error forever.
It is interesting to see that Germany, the country that are compared to all other economies in Europe, decided that under no circumstances shall rescue Greece by these two razones.A eventually, Greece will have to find the path of this financial Greek tragedy and be a better partner for the UE.No there is such thing as "too big" or "too small" why not!
For the United States tough times are by delante.sería a pity if Greece, where democracy, started could not teach the world a lesson and United States is where he finished the democracia.Para shake our children, you need to prove wrong.
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