What effect will the recent global economic news have on you? It could be greater than you think.
The recent events we have witnessed in Europe, with the near collapse of some European economies, has placed a great stress on global markets that in time may well be felt by you. The stress placed upon the euro and the resulting reverberation we've seen in global markets may indeed be just the tip of the iceberg.
The press has gone to great lengths to hide the fact of the turmoil that has erupted in nations like Greece and Spain. In fact, there was one point after the austerity measures were passed by the Greek parliament that it was reported there were over 54 buildings ablaze that very night within the Greek capital. Also widely reported was the fact that many of these buildings ablaze were in fact...banks! The banking institutions themselves were attacked by the Greek populace out of anger and frustration because of the actions that their politicians had taken to enforce austerity measures that the IMF had requested.
The global economic news out of and Greece and most recently Spain was met by most markets in a mundane fashion with little noticeable repercussions upon equities and exchange rates. Why was this? The reason for this observable, subdued affect upon the markets was actually due to severe and the active manipulation by the global governments to control and prop up exchange rates and markets to minimize the adverse effects of the upheaval within Europe.
But will the effect of Europe's upheaval eventually be made manifest in local markets? Without a doubt it will. The question remains to what extent would the failure of the Euro zone have on point global markets? The Euro zone itself has been put forward as an experiment destined to fail by many experts. The reason many have made this claim was primarily and because of the disparity in the economic status and strength of the member nations. Multiple nations, multiple economies all with multiple assets all sharing the same currency and exchange rate. The strong carry the weak and the weak burden the strong.
The ongoing efforts of globalization is witnessing a push for the regionalization of many currencies. We see the ASEAN group pushing for a regional economic system as well as the BRICS nations doing the same. But...being excluded in your standard news is the fact that these regionalization efforts will cause the demise of the U.S. dollar. The fact that we have regional groups working actively to form currency unions that would forgo the use of the U.S. dollar means that without a doubt these global events and this global economic news will affect you directly.
This is not a question of "if" but more so the question of "when". The potential effects of the failure of the Euro zone will reverberate throughout the world markets and the potential for emerging market currency unions to fill this void is very high. With the ever rising possibility of new regional currency unions shedding the use of the U.S. dollar as a primary currency of trade we will possibly see the failure of many U.S. markets.