Opposition Claims Government Understated Debt And Deficit Figures By About 25%

This time; It's Portugal. And Payback. And Twice The VanDamage..(Thanks, Janeane Garafalo)

Portugal, it seems, has a different set of problems than Ireland. Here's how: (from the Payback link..)

Ireland’s government has money, but its banks are drowning in debt, and the government has vowed to guarantee debts, making the state itself vulnerable. Portugal’s problem is different. Its banks are not especially troubled, but the state itself has high debts and low growth, and the mound of both public and private debt is considerable. The total debt is larger than the annual gross domestic product, some $275 billion of debt in an economy of $232 billion a year, one of the highest ratios in the developed world.
And:
So the interest rates Portugal would have to pay on the markets, should it have to borrow money now, would be much too high, forcing it to seek money from the European Union and the International Monetary Fund. The government here, as in Dublin, hopes the markets will calm down. But other European Union governments are concerned that unless the markets are appeased now, by protecting Ireland and Portugal, the contagion will spread to huge Spain, the fourth largest economy among the countries that use the euro.

The more I learn about this crisis, the more I tend to believe the worst possible outcomes will actually occur. There aren't any general answers applicable to more than one country, as economic circumstances will be country wide, but not regional. Solutions that appeal to both France and Germany would financially cripple or kill other EU countries. The solutions will be complex and incredibly painful for the weakest countries, and protests and riots are almost sure to follow. And still, the system will most likely collapse.

To drive the point home.. So, if the EU fractures, what sort of effect will it have here in America? Our financial structures And our government are both perilously close to collapse, and locked in tight with all of Europe. How could we possibly absorb the implosion of so many economically interwoven allies? How?