Global Economic Crisis

The US economy and lessons from Greece
There are many folks who say that Greece is too small an economy to make a dent on the US economy which straddles the world economy space like a colossus. While this is true, it goes without saying that there are lessons for the US economy from Greece, and it would be good for the US economy to pay heed to this. The problem is that like Greece, the US economy also has huge and increasingly mounting debt, that does not seem to show any signs of abating. The debt has grown to such an extent that it could swamp overall economic output. And like n the case of Greece, the debt of the US economy is owed mostly to foreigners. This is what is the scariest part.

If foreigners choose to withdraw money from the US Treasury, the US economy could collapse, just like Greece has seen it own economy lose the confidence of international investors. The UD economy would just get frittered away if it lost investor confidence and could be brought on its very knees. This would affect all Americans and while the US has never defaulted on its debt, this cannot always be so, unless the debt is brought under control.

Tags: Greece, US economy

This entry was posted on Thursday, March 11th, 2010 at 8:02 am and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.