In the global Economics arena, we have seen how in 2001 the country of Argentina defaulted on a $95 Billion debt, as it remains one of the biggest sovereign defaults in history. We have seen how Ireland and Greece, Portugal and Spain struggle to restructure their debts and perhaps leave the euro. Things to account for are inflation, devaluation of a currency, budget deficit and loosing trading partners. Sounds familiar? A break up of the Euro will have ripple effects if it is allowed. Stronger economies are paying for the weaker ones and infuriate its citizens. In order, to maintain social, economic and even political ties, Europe seems to head this way. In the US, this is not good news for our outlook to recovery. Many steps ought to happen. I venture to say the EU, IMF, the US and China will do what it takes to avoid a default and breakup of the euro.
Keep your savings and prepare for turbulence.