Eurozone Debt Crisis, U.S. Economic Policy Not Likely to Cause Currency Collapse

The Eurozone debt crisis and U.S. economic policy continue to draw speculation over how these countries will overcome growing mountains of debt - and how the incessant borrowing will affect the euro and U.S. dollar. More bad news came from Europe yesterday (Thursday) when the European Central Bank (ECB) had to intervene in Eurozone bond markets to buy Portugese debt. The country's 10-year bond yields hit a new euro-era record of more than 7.6%. Portugal has already instituted pay cuts and tax hikes to pay down its debt, but recessionary concerns are casting doubt over Portugal's economic recovery. The Eurozone government's inability to agree on rescue tactics for its weaker governments is also making investors lose faith in the euro.