The rise and fall of the euro zone

The financial crisis that has gripped the world is centered on the euro zone. The present financial crisis began in 2007 and it has gripped the entire world. It began in America and quickly spread throughout the word. Most European countries are in the grip of this terrible crisis that is unparalleled in history.

America is struggling to get out of this present financial crisis. Recent economic data coming out of from the United States has shown that the American economy is slowing down. This is not good news. European countries such as Spain and Italy are also experiencing the worst economic crisis.

The unemployment rate in America is stuck at 8.2% for a very long time. As the November presidential elections approach, it is becoming increasingly clear that joblessness is going to play a key role in who is elected as the next president of America. Whatever happens in America has a great influence on the economy of the euro zone. Hence, it is vitally important for Europe that the American economy improves rapidly.

The Republican presidential candidate Mitt Romney seems to have no idea as to how to go beating President Barak Obama.                  On his campaign trail, Mitt Romney has often cited Barak Obama’s impossible ideas expressed regarding the health care system. Healthcare has become a very important election issue in the coming presidential elections. This could be a key determinant factor in the elections. How Mitt Romney goes about attacking Barak Obama’s health care system could be the key to whether he is elected to the White House.

The crisis in Europe seems to be getting worse all the time every week. The recent elections in Greece have proved to be a blessing in disguise for Greece alone. Many financial analysts believe that Greece behead will eventually leave the euro zone. There seems to be no way out for Greece. Austerity is not going to allow the Greek economy to grow. On the other hand, austerity is a necessary condition for obtaining the bailout money.

If Greece decides to leave the comfort of the euro zone then this could spell trouble for the entire euro zone. Greece could be followed by Spain, Italy, Portugal, and Ireland. The entire breakup of the euro zone is conceivable. It would be only a matter of time before the entire euro zone breaks up, and the euro collapses. Some financial analysts believe that the euro will eventually collapse, as there is too much debt in the euro zone countries. Even the best economy in the word, the United States, has a debt that is equivalent to its national GDP.

The debt of the United States is more than $15 trillion. This is a huge amount of debt. To get rid of this debt, it will take many years. Meanwhile, China is hard on the heels of America. China has become the second biggest economy in the world. China is followed by Germany and Japan. Some countries are considered as emerging economies. These emerging economies are called the BRIC the countries. These countries are Brazil, Russia, India, and China. However, growth in these countries is also beginning to slow down. The global economy is in the slowdown mode, and it is going to take some time to bring it back to normal growth mode.