If you are not aware of how rapidly the global economic situation is unraveling you need to snap out of it and start paying attention. The world economy was relatively stable in 2010, but here in 2011 things are deteriorating very quickly. Right now there is major civil unrest in at least a dozen different nations in Africa and the Middle East. The civil war going on in Libya has sent the price of oil skyrocketing and the protests that are scheduled to begin in Saudi Arabia later this month could send oil prices even higher. Meanwhile, the sovereign debt crisis in Europe just seems to get worse by the day. Several nations in Europe are suddenly finding that it has become extremely expensive to finance more debt. It appears that it will only be a matter of time before more bailouts are needed. Meanwhile, the United States is also covered in a sea of red ink and the economic situation in the largest economy on earth continues to deteriorate rapidly. It is as if the entire world financial system has caught a virus that it just can’t shake, and now it looks like another massive wave of financial disaster could be about to strike. Does the global economy have enough strength to weather a major oil crisis in 2011? How much debt can the largest nations in North America and Europe take on before the entire system collapses under the weight? Will 2011 be a repeat of 2008 or are we going to be able to get through the rest of the year okay? Only time will tell. (Read More...)
Sovereign Debt Crisis
20 Quotes About The Economic Collapse In Europe That Will Make Your Hair Stand On End
Most Americans have been paying very little attention to it, but right now Europe is desperately fighting to avoid a complete financial and economic collapse. As the euro continues to fall precipitously, European leaders are openly declaring that this is the biggest financial crisis that Europe has experienced since at least World War II. So exactly what is causing all this? Well, just like the United States, countries throughout Europe responded to the economic crisis of the last several years by spending a ton of money. The problem is that quite a few of these European nations got into debt way over their heads. In particular, Greece, Spain, Portugal, Ireland and Italy are literally drowning in debt. There is a very real possibility that several of them may soon default on their debts. If that happens it could set off a financial shockwave that could encircle the entire world. Because of the interconnectedness of the global economy, a financial meltdown in Europe would have a dramatic impact on the U.S. economy. In fact, the continued ability of millions of Americans to enjoy the American Dream is dependent on events that are currently playing out in Europe. Most Americans completely do not understand this, but it doesn’t make it any less true. If Europe’s economy goes down hard, the already very fragile U.S. economy will be crushed as well. (Read More...)