No one in the punditocracy has raised the issue yet, but their are drastic dangers in the collapse of the Eurozone in Europe. The European Union (EU) voted an austerity rescue package for Ireland and Dublin accepted it. It then voted one for Greece, and Athens accepted it, but with the proviso of first holding a referendum on it. Commentators have even come up with an acronym for the danger of a Southern European collapse: PIGS--Portugal, Italy, Greece and Spain. If any of the three other PIGS defaults then Europe will be plunged into a depression, the Euro will collapse, and the effect will likely be felt across the Atlantic in America. Go here for a timeline of the debt crisis as it developed from late 2009 to the present. Go here for an article on the dangers of Italian default on their debt.
This is then the opposite of the Great Depression of the 1930s when the depression began on Wall St. and very quickly moved across the Atlantic to Europe and South Africa. America was providing the financing for the system of revolving finance in which America loaned money to Germany, which then paid that same money to the Allies as reparations for World War I, and then the Allies repaid American war loans. Once America could no longer provide the funding to Germany the system collapsed.
This is then the opposite of the Great Depression of the 1930s when the depression began on Wall St. and very quickly moved across the Atlantic to Europe and South Africa. America was providing the financing for the system of revolving finance in which America loaned money to Germany, which then paid that same money to the Allies as reparations for World War I, and then the Allies repaid American war loans. Once America could no longer provide the funding to Germany the system collapsed.
