Skip to content
Socio-Economics History Blog

Socio-Economics History Blog

  • About

Socio-Economics History Blog

Socio-Economics History Blog

How The Euro Crisis Could Destroy The U.S. Economy!

December 8, 2011 by mosesman

  • And not just the US economy but the world economy. This will not be confined to EU and US. Japan is also bankrupt with debt to GDP above 200%! The Chinese relies on exports and when the industrialized world tanks, it will not escape. Domestic consumption alone will not allow it to create sufficient jobs for its tens of millions of migrant workers.
    –
    How the Euro Crisis Could Destroy the U.S. Economy! 
    by http://www.theatlantic.com/
    Europe is closer than you think to bringing down the American–and, therefore, the global–economy.
    This is the worst-case scenario from Europe, and it just might come  true: Italy defaults on its debts. Every major Italian bank collapses.  Recession grips the eurozone. Sovereign defaults and bank failures  ripple across the Continent. Saddled with bad loans to nations and  lenders in Europe, American banks hemorrhage cash. Credit freezes in the United States. Multinational companies, unable to raise money, curb  U.S. investment and hiring. Wall Street demands, but fails to get, new  bailouts. The entire developed world plummets into recession and, quite  possibly, depression.

    –
    This, in contrast, is the placid warning  that President Obama gave Americans about the threat: “If Europe is  contracting,” he said on Monday, “then it’s much more difficult for us  to create good jobs here at home.” There’s still a chance that  Europeans, through some combination of fiscal and monetary action, can  stop the crisis before it shatters the feeble U.S. recovery. But the  worst case is so much worse than Obama’s description, and  Washington has failed to prepare voters for the possibility. “The  [potential] shock we’re talking about is of very large magnitude,” says  Viral Acharya, a New York University professor who studies financial  risk extensively. “If you’re just having an Armageddon coming your way,  [America’s] buffers may not be adequate.”
    –
    The eurozone’s struggles are already hurting the U.S. recovery. Stocks have fallen, and exports  to the European Union–the world’s largest economy–are dropping as the  Continent slides into recession. In the best case, the pain inflicted on the United States basically stops there. Europeans marshal the  political will to bail out Italy and Spain, and they wall off Greece  from the financial system at large. Lending slows but doesn’t stop. The  European recession proves comparatively mild, and America avoids one.
    –
    But the situation could worsen quickly for the United States. The biggest  risk is a massive credit freeze. Loans from European banks account for  one-fifth to one-quarter of the American lending market, Acharya says,  and loans from those banks would disappear fast if they begin tumbling  under bad sovereign debts. American banks would likely pull back on  lending, too. Consumers and businesses would curb spending. “The  precipitating event for the global financial crisis and the Great  Recession was the bankruptcy of a single, relatively small  broker-dealer, Lehman Brothers. The bankruptcy of a nation as large as  Italy would be many times more severe,” says Karl Smith, an economist at the University of North Carolina who cowrites the popular economics  blog Modeled Behavior. “In theory, there is no limit to how bad it could get.”
    –
    … for more click here!

end

Post navigation

Previous Post:

Jesse Ventura: FEMA Concentration Camps, Fusion Centres, Police State America .. Conspiracy Theory!

Next Post:

James Turk: The Banking System is on The Verge of Collapse!

Pages

  • About

Recent Posts

  • Biden Admin Announces Labeling Trump Supporters Domestic Terrorists
  • Will Biden Complete The Construction Of The New World Order?
  • The Purge (of Christians, Conservatives, Libertarians) Is Here: Tucker Carlson and Glen Greenwald Respond
  • Democrat NGO’s To Direct Military / CIA & FBI In Purge of Conservatives, Christians, Libertarians …
  • The Empire Strikes Back: War For Humanity Enters Final Phase FULL SHOW 1-22-21
  • Persecution for U.S. Christians Could Come Quicker Than You Think
  • Tucker Obtains ‘Shocking’ Internal Email Sent to ICE Officers
  • IMF Urges Govts to “Spend as Much as You Can” | Alasdair Macleod
  • Biden Will Extinguish The Dollar
  • Next Leg Higher Could Take Silver to $50
  • Flashback: Pastor Robert Jeffress Warns Lou Dobbs ‘The Left’ Will ‘Bring Out the Guillotines’ If Trump Loses Reelection
  • GREENWALD: The New Domestic War on Terror is Coming!
  • ‘Death Delivered To The Front Door’ Being Rolled Out In America – Globalist Stooge Joe Biden Again Warns Of ‘A Dark Winter’, Deep State Code Words For A Bio-Warfare Attack Upon America?
  • Antifa Riots on New Year’s Chanting ‘We Got The Guillotine’!
  • “We Want Revenge”: Antifa Anarchists Activate After Biden Inaugurated
  • LET THERE BE BLOOD: Biden And Fauci Team Up To Revoke Trump Policy Protecting The Unborn To Create Massive International US Taxpayer-Funded Abortion Scheme
  • Tucker: None of Biden’s Actions Help Law Abiding Americans
  • Keiser Report | A Very Large Stimulus Package | E1648
  • Silver Price Plummets Because “COVID Is Raging In China”?!
  • DC Setting The Stage For Permanent Martial Law And A War On Patriots

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011

Categories

  • Disaster
  • Economics
  • Endtimes
  • Geo-Politics
  • History
  • Medicine & Health
  • Satire
  • Science & Technology
  • Social Trends
  • Uncategorized

Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org
December 2011
M T W T F S S
« Oct   Jan »
 1234
567891011
12131415161718
19202122232425
262728293031  
© 2021 Socio-Economics History Blog | WordPress Theme by Superbthemes