World Sovereign Debt Crisis Will Lose Control at Any Time

Although the Treasury Secretary in the Euro area decides to start a succour mechanism with 110 billion euros on the 2nd to help Greece to tide over the debt difficulty under the push of economic powers in its area and the International Monetary Fund, the future destiny of this small economy with more than 11 milliom population does not obviously grasp in their own hands. Greece, which nurtured Western civilization, falling to such a condition today, it not only because not to advance is to go back, but also considered by Western economists as a victim of alinenation in 21st century, which is market economy with the best system until now. History has proven many times that:absolute capitalism is completely shameless. Today, when the Europeans are condemning the disgraceful role which is believed to have added insult to the injury Standard & Poor is playing in this sovereign debt crisis , if they understand that this is the "rational behavior" of Standard & Poor as an important part of the capitalist market economy.Serviceable Tricks that Deserve to Learn for Maintaining Your links of london charms

Because analyzed from the market behavior, Standard & Poor is not wrong. How to Drop It? discount pandora beads can Help You Make It! Then who on earth is wrong? The only mistake is that capitalism cannot be too thorough. Top ten Harms of the Popular pandora jewellery It must be admitted that economic finance began from Europe, prospered in the United States and even the whole capital world has greatly changed human economy and created unprecedented financial wealth. Retrospect the Euramerican economic evolution history in the last 30 years, we can find that with the support of the U.S. dollar-centric payment system and the endless financial innovation, the extremely prosperous financial industry has created a startling speed of wealth augmentation while putting aside the substantial economy which is supposed to be the most fundamental foundation of economic development. I said one year ago that though the financial crisis triggered by sub-prime crunch dented America`s financial credibility and hit forcefully on it economy, it [successfully" dealt a blow to America`s major rivals – economic powers in Europe and Asia. To small and medium-sized economies with weak immunity, it is no less than a Darwinist looting.

The financial tsunami bashed severely the waist of America from the appearance, but Uncle Sam was experienced and powerful enough to deal with it. Morever, after the financial crisis, instead of being on the wane, the US became more powerful and formidable. And to most medium and small sized economies, what they are facing was probably collapse. In that year, after the Senate and the House of Representatives of America carried out the bailout plan under both hard and soft tactics of the government, the operators of the American government suspended the bailout operation instead, the national debt amount approved by the bailout plan was not started in a long time, and the surveillance even dared to remove the short sales prohibition when the market was under extreme panic, It caused the stock index to slide further on October 9, 2008, the prices for the world's stocks and futures appeared giant oscillations with the volatility of the American market, the market outside the U.S. Amplified further the fear for recession and even collapse. As a result, the euro which performed to be strong recent years became the first looting object, the euro bull market turned sharply to crash.

If countries like Germany and France with solid economic foundation and strong resistance to impact can withstand the lashes of the crisis, the medium and small economies in the euro area were not lucky enough. It was probably not important whether or not Iceland with less than 300000 population can fish again. But when Greece risks bankruptcy and Portugal and Spain might possibly follow suit, the once ambitious leaders of euro area can no longer keep calm. Indeed, the fate of European economy rests with the solidarity of the member countries. It`s not only an opportunity endowed by history, but a test of action ability of European powers and more possibly, a risky gamble. Greece may be temporarily exempt to be the [European Lehman Brothers", but if this sovereign debt crisis dragged middle size economies such as Spain into the mud, then the debt plague derived from the financial plague wouldn`t only devour the recovery achievement of the global economy, but is liable to evolve into a fearsome [Darwinian" ransack this autumn. Prior to this crisis, Europe, which had almost found the direction of historical development, was going fairly smoothly on the road of political and economic integration, with the continuous eastward enlargement of EU, the capacity of action and coordination of euro zone is gradually getting strengthened.

However, with more romantic feelings than reality thinking in recent years, European continental countries seem to have forgotten that nowadays when countries are not extinct and monetary independence remains an important symbol of sovereign state, when committing to economic integration, Europe is facing with many constraints and bottleneck. The coming out of euros indeed propels the progress of economic integration of Europe greatly and saves lots of dealing costs, but euros always lack the integrated political support and the generically consistent public opinion support.

For instance, Germany, the country of strongest action ability, which assumes 22.4 billion Euros of the total rescue to Greece, is faced up with opposition from 56% of its citizens back home. But of course, Germany and France won`t easily forsake Greece, a partner of symbolic significance. Barroso pumped up European economy again and again and declared that Greece debt crisis will not "spread" to other European countries. But who can stop the further ferment of sovereign debt crisis? Who can make sure that nothing with explosive influence will happen in euro area? If Spain with a GDP of 1000 billion Euros, whose unemployment might go beyond 20% and whose credit rating might downgrade into junk rating at any time, follows suit of Greece, plus Portugal`s collapse, then it is no less than a massive landslide to big European countries like France and Germany.

By the time the exhausted euro zone heads are not only confronted the problem of how to [Mend the Wall, but prevent the fear from vast spreading as well. However if we look into the process of the crisis outbreak two year ago, the US, as the global financial leading power, couldn`t even deter the epidemic, not to mention Europe whose financial capability is apparently inferior. Facing this global sovereign debt crisis which might run out of control at any minute, countries and international organizations have but to act as soon as possible and come up with a proactive counter-plan.