Trouble in Latvia

Latvia is one of the nations struggling the most in this current economic downturn. They are extremely credit ridden, and is trying to cut its government deficit that accounts for around twelve percent of the GDP, and is expected to rise further. Many people are struggling to find work, and the current administration is planning on forcing down wages of civic officials. Most of the Latvian crisis has rose from the fact that Latvia uses two currents, the Lat, and the Euro, and were trying to phase the Lat out. However, the Lat is still in wide use, and unfortunately for the country, the Latvians average house hold debt is 85percent euros. Thus the Government is trying to devalue its own currency. I think it will be really interesting to see what goes in Latvia, as we see the class divides diminish as people continue to struggle to make ends meet.