Globalization Study Greece Economic Crisis

978 words 4 pages
Globalization Case Study
Greek economic crisis

Introduction: In September 2009, Greek economic crisis exploded. Greek government announced that the country’s financial deficits and public debt to gross domestic product would be along about 12.7% and 113%, which are far from the provision of European Union: 3% financial deficit and less than 60% public debt to gross domestic product. Moody’s, S&P and Fitch, the three major credit-rating agencies, all reduced the credit-rating of Greece. The direct cause of this crisis is government’s massive deficits. However, besides Greece, there are other European countries also belonging to European Union; face a similar problem, such as Portugal, Ireland, Italy and
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It was not a big deal for America at first, until EU had mentioned Eurozone. It suffered a drastic disagreement from London’s financial hub as it threatened the position of the U.S dollar. To split EU they supported the eastward enlargement of EU. When Germany and France succeeded, they already lost the advantage of EU. There’s a big economic difference between east Europe and west Europe and they were not trading frequently. If wolves stare at the most weak sheep, the sheep’s result is certain. Surely, wolves can not be satisfied for just one sheep, they wanted to eat all of the sheep, but a smart wolf would give sheep a chance to breed. After Greece, Portugal, Italy, Ireland and Spain may have risk of being eaten by the wolf. So, France and Germany face a difficult problem, if they help Greece, their citizens are not happy and the countries they help are not grateful for their bailout, they keep asking for more. If they don’t help those countries, they will leave EU subsequently making EU weaker.

So, we can fairly say that it is the main purpose of London’s financial hub to make the dollar’s situation safe now as it will be a long time before EU can challenge the US dollar.

In my opinion, every great change in this world is controlled by the super powers, to become more powerful they make other countries weak. After Japan, Southeast Asia and Europe, who will be next? The wolf will find different ways to weaken other countries in order to


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