Europe’s Debt issues may cause problems for the U.S.

22 May

In 2008, the Euro rose in cost quickly compared to the American dollar, as America entered the peak of its economic crisis. Europe grew rapidly on the economic boom that the success allowed them, benefitting from increased exports and international business, while America worked to find its feet. Now, as America is slowly rebuilding and shaking the dust off itself, countries in the Euro zone have problems of their own, and if they continue, America may have its fair share in the misfortune of Europe.

Greece seeks an exit from the euro zone, as well as an impending bankruptcy, and both political and economic turmoil wrack the European continent. The Euro is beginning to fail, as if it were on the peak of an enormous hill on a roller coaster. If this comes to pass, and the Euro falls even twenty cents, exports in America would skyrocket, taking business from countries in Europe, and causing a deeper economic issue overseas. The backlash would ripple across the world, but most strongly here in the united states.

Stocks are falling across the United States due to European speculation, as Europe has less money to buy American product. Europe having less to spend internationally means that, while the immediate situation would help America, the long term effect for the United States would be losing an important venue to sell to. Hopefully, the continent will pull up from the crisis, or that some outside help will be found in the coming trials. While America could benefit from an immediate downturn, it’s not worth the long term effects.

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