America is about to fall into a new debt crisis if it continues to follow the example of Europe. This alerts the former president of the U.S. Federal Reserve Alan Greenspan. At a conference in Montreal, he said the situation with the euro, which he says is a “noble experiment”, but has failed.
Quoted by the Canadian Globe and Mail Greenspan indicated that the expected flattening of cultural differences between euro area countries had not taken place. The poor southern states failed to resemble the northern partners. What they did they all the time, was to borrow money from credit card to Northern Europe. So serious were accumulated budget deficits.
This can not continue categorical financier. Moreover, the euro as a project failed and the only solution to the current crisis is to proceed with a solid political union.
Troubles in Europe threaten the United States, who are already headed towards a new debt crisis. The reason is the inability of politicians across the ocean to reach consensus on important economic issues. It would be much better if you do not follow in this respect the example of Europe, says Greenspan and predicted that the situation will likely worsen before they improve.