Friday, February 5, 2010
Fears Rise of Euro Government Default
Should other countries in the EU be made responsible for the debtor countries sharing their currency? <> In what ways will the debt of other countries affect the US economy?
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I don't think other countries should have to be responsible for the debt of a country that shares their currency, but unfortunately, that has been the case. The debt of other countries affects the US economy as well. Their currency will decrease in value, and the United States will no longer want to participate in trade. The whole world economy is linked, and when one country is in debt, it affects all the others.
ReplyDeleteI think that countries should only worry about their own debt. Debts are made by a country doing something that they should not have done. If a country shares a currency and is in debt it depreciates the value of the money. As the currency depreciates it makes all imports more money. If the U.S. dollar is worth less it would cause for other countries to want to buy from the U.S, but the U.S. would not want to buy from other countries.
ReplyDelete"be made responsible for the debtor countries sharing their currency?" No, but they should be concerned. Allison is right, the world economy is linked, any nation in debt is of concern the entire world economy.
ReplyDeleteA country shouldn't me made responsible for the debt of another. But with such great debt as that of the Pig's Country, the shakiness of the shared currency is causing worries among cuontries like Spain regarding their weakened public finances.
ReplyDeleteIn my opinion, I don't believe that we should be responsible for other countries debts. As Allison stated, it would be nice to have other countries take care of their own debts, but in out modern world that just can't happen because it will effect us a whole. We are connected economically, so when country suffers with the debt, then the other countries will feel the effect of it.
ReplyDeleteI do believe that all of the world economies are linked and it could be drastic to our economy. It seems like the US bails a lot of other people out (AIG) why not bail the EU out too?
ReplyDeleteIt's hard to say whether or not a large geographical region containing a multitude of large societies all sharing the same currency is not ONE ECONOMY. It's even harder to point the blaming stick at any one country outside of the ones the are in debt, but as a collective economy, debt in one country that uses the Euro means bad news in another linked country that uses the Euro. I agree with Stevie in that the linked countries should be showing grave concern; the HAVE to realize how impactful a worsening debt in countries such as Portugal, Spain, and Greece could be on their own economies. This debt in other countries, though in a view of the global-economy isn't very good, might actually bear promising prospects for the U.S. The value of the Euro gets degraded, eliminating any feasible threat of the Euro taking over the U.S. dollar's position as the international currency of trade, and overall it will mean we will rise above them in exports. The only negative factors I see are that that economy of the Euro won't be able to accept most of our imports and the prices of their exports will most likely increase considerably.
ReplyDeleteI don't think other countries in the EU should be held responsible for countries with huge debts. Unfortunately, world economy is connected and when one country is in debt it will somehow affect other countries.
ReplyDeleteUnfortunately for the other EU countries, just because it isn't their problem or fault doesn't mean that they aren't to be concerned. If any one of those countries' economies collapse, the euro is going to be in quite a bit of trouble.
ReplyDeleteWith other countries having large debts, the world economy is suffering. Tariffs being a good way to make an income, I'd venture to guess that prices of goods across all borders would increase dramatically, and trade & prosperity will decline.
I disagree with most people here. The EU contries SHOULD be responsible for the debt of the others. They all chose to share a common currency, and therefore obtain both the positives and negatives of this situation. To me, saying that these countries should not bear the debt of the other countries is almost like saying Texas shouldn't have to deal with America's national debt because it's just a state inside a country. These European countries are united under the European Union, and must take responsibility for that.
ReplyDeleteThe world economy is linked, and any country in debt should be a matter of concern. However this does not mean that the financially stable countries should be responsible for the debtor countries sharing the same currency in the EU. Yet, as I already said, it is a matter of concern. It may be in the stable countrie's best intererst to aid those in debt for their own well being, but it is now way their responsibility. The purpose of a common currency is not to reallocate financial responsibility onto other, more stable countries.
ReplyDeleteI belive that each of the EU countries should hold some responsibility for the debt of other countries in their union because of the fact that they share a common currency. I don't think that that these countries would want to see their currency fail or a country face economic trouble that would eventually collapse the whole union. These debts can have huge reprecussions on the world economy, including the United States. Economies are linked together and they always have, and always will, be subject to a domino effect.
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