Worlds Economy

I am not by any means political or financial expert…  But I am also not brain dead.  Anyone who can add ‘one plus one’, or spell “the” can see what I am about to rant on about.

Lately the European market has been the highlight of political and financial news.  This is great because it is one more thing for my family and I to debate and discuss.  Now we all came into agreement that the American President should not be the one going to these other nations with advice or opinion since they have had the world’s largest debt since their founding as an independent nation.

In 1971 their Debt amounted to $75 463 476.52USD (USD meaning American dollars) which amounts to about $5 380 000 000 000.00USD ($5 454 912 556 046.00CAD[CAD meaning Canadian dollars]). Their current debt is about $15 068 108 000.00USD ($15 277 920 357.82CAD) Now that total debt works out to be $174 224.00USD ($176 649.94CAD) per American citizen.

Greece has defaulted a total of 5 times in the past (1826, 1843, 1860, 1894 and 1932).  In 1832 Greece had received a total loan worth 60 million drachmas (cannot get an accurate representation of today’s value). Today they have a debt of €340 157 000 000 ($465 414 524 228.64CAD) which works out to be about €30 115 ($41 204.38CAD).

Greece is not the only nation in Europe that is facing financial trouble, or even in the world.  But they are currently the focus since they have the highest in Europe. 

Now that you have a highlight of the numbers, and a little history-let us get to my opinion.

I don’t believe that a country with such a significant debt, and history of debt (without getting out of debt) should be advising or even have an opinion on another nation’s debt (such as American vs European nations).  With such a large debt and never defaulting due to the fact that other nations have been afraid to speak up, and force them into defaulting in fear of global economic collapse has caused an even larger issue now.  We cannot allow the US to continue to borrow money without causing further economic instability, and by allowing the US to default will also cause other economies to collapse. This is the same with allowing more than one European nation to default.  Because of the European Union and the Euro, if a couple European nation economies collapse the entire Eurozone will feel it.  This would in turn be a global economic crisis since Europe does a lot of trade with other nations including Canada and the US.  

Europe’s top trade partners are U.S.A., China, Russia, Switzerland and Japan-With Japan exporting over €74 billion per year to Europe.  As of 2010 our exports with Europe were about 5% of our total, leaving the US with 73% of our total exports.

Now that I have had my little rant… That does not have any structure… Goodbye and Enjoy the information…  My resources were from the News and Internet…


http://coinmill.com/
http://www.usdebtclock.org/
http://nationaldebtclocks.com/greece.htm
http://www.measuringworth.com/
http://www.publicdebt.treas.gov/history/history.htm
http://financialedge.investopedia.com/financial-edge/0911/The-History-Of-Greek-Sovereign-Debt-Defaults.aspx#axzz1fI1f7FIp
http://moneymorning.com/2009/11/25/government-debt-default/
http://www.deljpn.ec.europa.eu/relation/showpage_en_relations.trade.partners.php