The global financial crisis created a circle that affected the economies of all industrialized countries equally. Money increases and decreases in one country tend to cause a wave of financial changes in other countries.
Somehow debt and related crime have gone global. You can surf the internet to know more about the European sovereign debt crisis.
Debt assistance, business, and various debt solutions are available to help people settle their personal consumer debt, but what happens when a country's financial crisis affects the economy of another country?
The same applies to recovery from the recession, and although the Greek economy is only 2% of the European economy, its debt in Europe is worrying because it uses the euro, an international currency controlled by the European Central Bank in Germany.
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As the Greek prime minister said, the current debt scenario is deeply involved in the US and European economies and has threatened its monetary policy, reminiscent of the Great Depression and the great recession that sparked in the US two years ago.
The European Union is trying to limit the wider Greek region to the mainland so that other countries that use the euro as a currency cannot be infected.
Government officials have stated that the increase in unpaid debt in Greece has caused Greece to default, and in this case, there is a risk of an angry economic downturn and recovery of a severe financial crisis – high-interest rates.
The volatile Greek economy will terrorize US government bonds due to fear and uncertainty and the possibility of flight from the stock market.
This financial damage can also cause a "double recession" in the United States, which will continue to worsen the economy due to rising unemployment and government debt problems.
To close the gap in recession, the Obama administration has decided to double exports over the next five years. This can be a big challenge if the debt crisis in Greece is out of control.
When the European economy is back in the back seat, the US dollar will gain strength, which in turn will give the Obama administration a political headache because a stronger dollar will make exports more expensive.
If interest rates rise, followed by the depreciation of the euro, eventually, Europeans will have difficulty buying American products. However, all of Europe has been frustrated by Greece's responsibility to damage the entire eurozone economy, which can weaken the currency and cause higher interest rates for all Europeans.
If the current Greek debt crisis does not improve soon, this could lead to further collapse of the financial system and the credit crisis in the euro area as well as in financially dependent and vulnerable countries.
In the short term, the Greek crisis will initially only affect US stocks and stock markets, with initial and insignificant effects on the macroeconomy, but a significant decline will have a colossal impact on the global economy.