One of my clients told me about an interesting website today, www.usdebtclock.org. This is a very sobering website, so if you want to get depressed, take a look.
It will be interesting to see what kind of effect this heavy US debt has on our future as a nation. In the news this week has been Greece's inability to pay back it's debt which may seem like small potatoes, but is a signal to the rest of the world of the dangers of national debt and could serve as a domino effect for other countries around the world, especially in the EU.
Greece has tried to float more debt in order to cover it's debt, but the problem is that there aren't many parties interested in providing money to Greece for this purpose. This is a recipe for disaster and especially significant because Greece is a card-carrying member the EU, and trades in the Euro currency. The EU has offered to come to it's aid, but most other countries in Europe are also saddled with debt. This has had an adverse effect on the Euro currency in recent weeks.
If Greece cannot repay it's debt, it could serve as a dagger to the EU as a whole. Rumors are swirling that Greece may be attempting to leave the EU and develop it's own currency. Could this be a domino effect that could bring down the EU? If so, the effect would spread worldwide and would not be good.
This "Greece Effect" sounds familiar- can you say "Mortgage Meltdown?" This is similar to what happened to banks in the US who were not able to meet debt obligations based on bad lending practices and it did in fact bring down a large number of banks.
So the question now becomes, as I look at the increasing numbers on the US Debt Clock website- Will the US be able to pay back it's debt?
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