According to an article in News247, writer of “The Journal of the American Enterprise Institute” Desmond Lachman, expressed his opinion regarding the future of the Greek economy, the European debt crisis and presidential elections in the USA.
In reference to the Greek economy, Lachman said it is possible that debt restructuring may be necessary. In addition, as the IMF continues to demand stricter austerity measures for the country, Greeks will likely continue to protest and the government of Papandreou could fall by 2012.
He believes that the economic crisis in Europe will be aggravated. As a result, defaults will be declared during the next six to twelve months in European countries, coinciding with the period leading up to the American presidential elections of 2012, which could cause a series of domino effects.
European banks are facing terrible problems due to the 2 trillion dollar debt of Greece, Ireland, Portugal and Spain, countries that are likely to suffer great loss due to the public debt they hold.
The economy of USA is in recession and the rate of unemployment will be extremely high during the election period. In Lachman’s opinion, this situation will surely be a political liability to Obama and may be used against him in the elections, possibly resulting in his not being reelected as President of the United States.
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