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On November 1, 1993 the fate of our economy was decided. After one half of a century of waiting, the Eurozone came to a solemn existence. The once great powers of the world, the European nations, had completed a risky, and perhaps foolish, task. The world’s first regional economic system was successfully created. Now, almost two decades later, the world’s economies are on the verge of collapse, and it seems that no economy, other than the Eurozone, is at fault, due to its recent and quite careless economic endeavors. As the rest of the world continues to force the blame upon the Eurozone and its twenty-five member states-including the United Kingdom of Great Britain and Northern Ireland, France, Spain, Portugal, Italy, and Germany, we…show more content…
And looking at these facts, it is safe to reason that the recovery is worse than the downfall-just because of the sheer scale of this crisis.
In some cases though, the Sovereign Debt Crisis lacks the power to harm the global economy. Take the United States of America and their recent Standard and Poor 500 downgrading form AAA, the highest and most prized global rating to AA+, a lesser rating. Essentially, the United States of America harmed the world economy more so than the Eurozone. First off, in examining the conditions of the U.S.A., one finds that the net debt was approximately 80% of the GDP (of the national GDP, to be exact) in 2011. It has been forecasted that this number could breach an astonishing 90% according to a study conducted by the American Institute for Economic Research in 2011. Now, taking into account the fact that the United States of America is the largest and most powerful economic force in the world, the issue deepens. This further develops into a weakening global economy, and a loss of trade (the driving force in the global free market economic system. The United States of America is on the verge of suffering other downgrades; yet the Standard and Poor 500’s downgrade is by far the worst, as it shows a global decline, not just a domestic decline.
Surprisingly, Eurozone members
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