After the latest whirlwind of government stimulus spending in the United States and Europe, taxpayers across the globe may be struck with a grim reality. With Greece, Spain and Portugal’s economies in the veritable toilet, some experts believe it is only a matter of time before America follows suit.

Why American Investors Should Be Worried

As investors scurry towards the apparent safety of US Treasuries, the US economy, for the moment, gathers strength. However, as John Browne of Euro Pacific Capital states, “The rush into the dollar is akin to the passengers on the Titanic streaming towards the stern as the ship began to sink by the bow." Right now, “every problem facing Europe faces America.”

Consider this: It is curious that as confidence in the US dollar climbs, the price of gold remains at record highs. Clearly, many investors remain wary, seeking the relative security of precious metals. Get gold and silver investment advice.

Having pulled a trillion-dollar band-aid over the gaping wound of its struggling economy, America looks good for now, but only when compared with the recently publicized fiscal hemorrhaging across the pond.

Euro Unpopular in Germany

So why does Browne feel that global financial instability is actually increasing with many media outlets reporting otherwise? In some areas, there are very real concerns that the fledgling European currency will crumble. In fact, in a recent poll, the majority of German citizens feel their government should consider abandoning the Euro.

A highly industrialized nation with strong exports, Germany will largely carry the weight of the Greece bailout. Still, some experts insist that economic socialism will out. According to Japanese economist Daisuke Karakama, the EU needs to develop “a system to transfer money smoothly from rich nations to poorer ones.”