With the chaos that is raging around the Euro, I’m more grateful than ever that I was fortunate enough to be born in the US. Having lived my entire life in the US it’s easy to lose sight of how lucky we are to be in such a wealthy and stable nation.
While the 2008 credit crisis felt to us like an economic disaster, it was a mere blip compared to what happened to Iceland, Ireland and may soon occur in many of the other European nations. I can only imagine what choices will face many Europeans if the Euro dissolves.
Will their bank go under? If so, will the government bail it out?
If their bank account is denominated in Euros, will they be forced to convert to a local currency?
If they’re forced to convert, what will be the conversion rate?
How will their new currency compare to either what’s left of the Euro or other major trading partners (US, China, Germany, etc.)?
How much buying power will they lose?
If they work for a multinational company, what currency will they be paid in and what will their salary be going forward?
Will there be riots? Will their government fall?
What will happen to their private or public pensions?
What about their investments?
The permutations are endless and none of these questions are likely to have good answers anytime soon. Whiles its easy for us to look at the breakup from a distance and observe we shouldn’t lose sight of how many citizens living in “1st world countries” are looking at the very real possibility of a significant reduction in their financial well being.