The U.S debt crisis verses the Euro debt crisis which one is worse?
In my opinion the Euro debt crisis is way worse than the United States debt crisis and the reason is American’s are used to paying taxes and have a basic understanding of how things work under a fiat monetary system. On the other hand in my opinion I don’t think European countries under the euro are ready for the changes that are coming to the world with the emergence of China. The European dollar in my opinion is in serious trouble mainly because each country under the Euro has different laws governing their money.
The United States is only one country and Americans love their country and in general will do anything to protect it including paying taxes and participating in the measures necessary to keep their country great. In the euro however it’s a different game because all the countries inside the Euro love their individual country as well as the laws governing their country. This makes fixing the European debt crisis a much more complicated issue.
Let’s talk Euro Zone
The problems facing the Euro are Italy, Greece and Spain. Also I would watch out for France as well. These countries and the socialist laws governing these countries have now been exposed because of the current economic downturn. Not only that but these countries have enjoyed a way of life that most of their citizens consider a right and now that the world is becoming more competitive and their governments are clamping down the socialist countries in the euro have to make changes that their citizens probably won’t understand. In a nut shell the Euro has some major problems coming in the near and distant future which in my opinion may devalue the euro tremendously.
Let’s talk America and the United States Dollar
Like I mentioned above America is one country not only is America one country but America is also self-sustainable. America is not RELIANT on trade. Yes America is in debt to China but America is not reliant on China. America’s problems stem from the fact that there are a lot of very hard working Americans and also there are a lot of very lazy American’s. In the future in my opinion there will be two major economic players one being China and the other being America.
Let’s talk China and the Chinese Yuan
Unlike Chinese Yuan and the American dollar the Euro has multiple different countries to answer too before making a change in their currency this eventually will devalue the Euro unless they can find a way to make all the countries in the Euro zone share one culture in regards to their currency. The euro debt crisis is serious while the United States debt crisis is mostly political. The country that is set to gain the most out of all of this is China which in my opinion will most likely strengthen its ties with the United States while the Euro tries to find a way to fix its massive debt problems.
The Euro debt crisis is much worse
Great Britain didn’t join the Euro for the very reason we’re seeing today. The euro problem in my opinion can have a much more severe domino effect than people think because there are so many different countries involved in the Euro. In order for the Euro debt crisis to fixed some countries are going to have to eventually abandon the socialist model they’ve embraced.
Can the Euro embrace capitalism?
The world is getting ever more competitive and those that don’t see this will be wiped out. China is slowly becoming a viable option and in my opinion the Euro has the most to lose with the rise of China. The Euro and the members of the Euro are reliant on trade to stimulate their countries and I suspect once this flaw is recognized by the markets the Euro will be devalued. As it stands now even in this recession America even with all the printing of money has barely budged when the markets are fearful where do people go? They go back to United States Dollar.
The Euro in my opinion is in far more danger than the United States dollar is and I suspect that in the future that the Chinese Yuan will take the place of euro. I also do see China eventually over taking over the United States economically but I don’t think the impact will be as great as people think because by that time the Chinese Yuan will have appreciated to its true value which at that time the U.S should be able to pay their debts back with cheap dollars.