I'm new here so I'm not sure if this type of question is appropriate on this site.
I live in the EU (Italy) and I'm quite concerned (probably not the only one now in EU) about the possibility of some country (maybe mine GDP/DEBT 120%) to go into default or very close to it.
Before asking this question I tried to sort it out by myself reading these very interesting q/a:
- What happens to my savings if my country defaults or restructures its debt?
- Worldwide currency: What would happen if every country used the same currency?
But I could not come to an answer. In Italy is the 1st time we have one currency for all EU states. I think in the past when we had Lira the government would avoid default by simply devaluating the currency, but I suppose one EU country can't decide on its own to do devaluate a currency like Euro that is common to all other countries.
Here Frazell Thomas says: "A similar reality happens in the United States with some level of regularity with state and municipal debt being considered riskier than Federal debt (it isn't uncommon for cities to default)."
But do you know about a US state risking to go default now or in the past? I'm very confused do US single states like IOWA have debt and emits obligations on their own like Italy does in EU?
Oh, and just another little thing I would like to know, is Dollar a fiat currency too like the Euro?
Thanks in advance for any answer.