The Eurozone countries and the United States of America who are alleged to be the key economies ruling the world, probably wouldn’t have known what it actually feels like to be bankrupt or settling debt. But during the past 18 months also the Eurozone has been suffering from debt and a diminished growth thus increasing its worries.
With European leaders also facing a potentially ruinous debt crisis, a leading Wall Street figure described the prospect of a US default as catastrophic. The US faces the prospect of a financial tragedy as President Barack Obama stands firm against Republican demands for deep spending cuts without any tax increases.
As an ordinary citizen of a formerly 3rd world country systematically moving towards a developed country, looking at this crisis situation I believe that it is an opportune moment for 3rd world countries to rise up, make use of the opportunity and to try manhandle giant economies.
Greece is openly in trouble, which has led to their leaders being forced to bring forth austerity measures to tackle their financial crisis. Its not only Greece, Italy is also in trouble and is expected to be the next country that would be hit badly after Greece. Ratings agency Moody's has cut the Republic of Ireland's debt rating to junk status. Moody's said its decision was based on the "growing possibility" that Ireland would need a second bail-out before it can return to capital markets.
The interesting fact is China – which the Eurozone and US looked at sarcasm a few decades back is the very same country which has come to rescue them, although its intentions may be vague. China is now a major buyer of Eurozone bonds thus signaling its attempts to probably be the savior of Europe – Wow!
With roughly 26 percent of its currency reserves invested in euro-denominated assets, China has a major interest in seeing the Euro remain stable.
Considering all these facts, one thing is evident, that is the USA headed Europe is no longer tackling matters on their own. And China could be the next global financial power to which everyone may have to turn to. All this time the so called world powers using their so called financial strength challenged others and extracted their resources be it human or other resources. But knowing that they are in trouble it is time for little dwarfs like us to rise up and attack their week points and have some good time of our own. How we are to do it? Well we need some new and shrewd plans, but the opportunity is there. We need to keep in mind that opportunities are very limited and if we grab them with both hands there is going to be a dramatic change in world financial arena.
