RIPPLES OF EURO CRISIS

Europe's crisis may seem to be their problem, but, if it culminate to the dissolution of this economic union or even a growth dampening series of costly BAILOUTS- it will reverberate from beijing to washington. Europe is both the U.S. and China's largest trading partner. A dramatic depreciation of the euro or a dissolution of the union would make nations from Asia to Latin America that hold the euro as a reserve currency much weaker. Even the mere effort to contain the crisis with looser monetary policy on either side of the Atlantic creates a risk of inflation and hot money that could punish emerging markets, economist lke Goldman Sachs's Jim O' Neill have warned.
                                                  Borrowing costs for Europe's weaker economies like Greece, Ireland, Portugal, Spain and Italy have skyrocketed as halfhearted measures to stabilize the markets have made investors suddenly wary that the European center is not going to hold and that richer countries like Gremany simply aren't committed to the monetary union. That's why bond spreads are widening, European stocks are tanking and the European central Bank (ECB) is desperately trying to calm markets by buying up waeker countries debt. unemployment rate in the US is over 9.1%  while in European Union is over 9.4%. Germany maintains a large export-driven manufacturing sector. That has made its economy among the most stable in the world during the downturn. France's citizens generally carry less debt than Americans do. The government has an aggressive plan to cut borrowing, but some say it will not meet its targets. Can U.S. economy kick-start Europe's and world slow growth???