“As the European Union enters a financial crisis in slow motion,” a Huffington Post reporter avers, “the fragile American economic recovery hangs in the balance. With Greece almost certain to default on its debt, European political leaders need to take decisive action to prevent a resultant string of bank runs and government defaults, which could precipitate double-dip recessions in Europe and the United States.”[1] If Greece suddenly defaults, Kavoussi reasons, other E.U. states “could leave the European Union to flee higher interest rates and to enable themselves to pay down their debt more easily by devaluing their currencies.”[2] Such an outcome, she claims, “would almost certainly plunge Europe into a recession.”[3] She observes, moreover, that “European politicians may lack the political will necessary to prevent the sovereign debt crisis from mushrooming into a global economic slowdown.”[4]
The
complete essay is at Essays on Two Federal Empires.
1. Bonnie Kavoussi, “European Sovereign Debt CrisisThreatens American Economy,” The Huffington Post, September 27, 2011.
2. Ibid.
3. Ibid.
4. Ibid.
