…states the former Fed Chairman Alan Greenspan in a recent interview with Bloomberg. Not only is the US debt at a world record breaking level, some European countries who rely on the United States and its close friend in the European Union to stay afloat are approaching complete default. Greece is currently in the spotlight.
As the Eurozone plots to dissolve the severe debt with faux financing, rioters revive protests across the city of Athens. Greek demonstrators turned violent this week in protest to the austerity measures by Greece’s parliament. Greenspan stated that Greece’s likelihood of avoiding default is very low, and many are waiting for the “Lehman moment” in Greece.
How will the default of Greece effect the United States?
- If Greece defaults, the Eurozone has to step in to catch their fall. This means that Euro spending will be focused on damage control instead of US purchases…