Sunday, November 11, 2012

The World's Biggest Economy Is Collapsing

 In the world's biggest economy, the Euro Zone, unemployment, already at the Great Deprssion level in southern Europe is getting worse, government spending is being cut, consumers are slashing their spending, as are large companies, while many small companies are going out of business. The situation is spiraling down.

In Greece, to protest their government yet again slashing spending to comply with creditor demands in order to receive their third bailout in two years, for two days last week, hundreds of thousands of Greeks went on strike, shutting the country down.

In Greece and in Spain unemployment exceeds 25 per cent, meaning 1 in 4 workers in those nations is unemployed.

Unemployment is nearly as bad in Italy and Portugal and the problems are even spreading to Europe's biggest and most successful economy, Germany, as industrial production is continuing to fall. Because of its financial success, Germany has been the deep pocket behind all European bailouts.

If the Euro Zone economy does collapse, it will impact the economies of every major exporting nation, most notably China, as demand for their goods falls off. The U.S., the world's biggest debtor nation and one constantly needing to borrow money will find its sources for capital being squeezed.

For now, the U.S. has easy access to plentiful cheap money because its dollar has been considered to be ultra safe, a condition that will not continue if the U.S. can't pay its bills. Ironically it can't pay its bills now without borrowed money.

We as mankind must get involved in helping to rescue our financially ailing southern European brethren or their pain will become our pain. There is is still time to prevent a collapse if we all get involved and offer our ideas and share our resources.



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