During the past decade, the Greek government borrowed excessively and went on a ridiculous spending spree. Therefore, when the financial downturn hit, Greece was in no way prepared. The outcome of their actions is not very pleasant, considering they are now buried in 300 billion Euros of debt. This does not only affect them, but has a huge impact on many other countries, included United States.

Every country that uses the Euro and trades within the Euro zone will be affected by Greece. Fifteen other countries that use the Euro are immediately hit with Greece’s financial crisis because they offered to lend 30 billion Euros in the next year to help ease Greece out of their debt. As a result, taxes will rise for those countries. If the debt is left untamed, it could spread to other economies that do not have a great history of balancing their debt. These countries are referred to as “PIIGS,” which consist of Portugal, Italy, Ireland, Greece, and Spain. The possibility of Greece’s downfall along with the rest of the “PIIGS” has struck fear in the open market. Interest rates on government debt have increased making it more expensive to borrow on the open market. This crisis also affects individuals who invested or own shares through pension funds because many major banks invested in the Greek Debt.

The crisis has already taken affect on United States businesses. The debt has caused increased in public protesting. In the early stage of the crisis, the Greek government placed a $250,000 order for body shields that are manufactured by Paulson Manufacturing Corp, a United States business that makes protective gear for riot police and others. Now the Greek government placed a hold on these orders and is waiting to see if anything is resolved. This is only a glimpse of what Greece’s debt can cause to United States. Many American businesses are worried because the Euro just recently touched a one-year low against the dollar. This has a great impact on all businesses because United States exports are now more expensive in Europe. If this continues it can weaken all overseas sales or even make a big impact on revenues for American companies.

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