Why should debt concerns in Greece, Italy, Spain or Portugal have such effect on Australia when we are in the middle of a resources boom supplying China's economic growth?
It seems to be all about perception. If some nations default in Europe then the first world's tangled web of loans and dodgy investments begins to unravel. Then we get a run on banks and mass "withdrawal of participation" in the financial system, with trust broken. This could end up in a 1930s style depression.
So the First World's financial system is a giant interconnected ponzy scheme teetering on the brink of collapse. Last ones out lose all their money. Banks close their doors. Countries go broke. Currencies collapse.
After largesse by various governments and politicians over decades, with unregulated dodgy financial trickery rampant, the solution is "austerity measures" on the hapless populations that pay the taxes.
Another solution is "Quantitative Easing" - which the United States is doing - which effectively means printing more money without producing, making or growing anything.
It seems to we need to redesign our financial system to eliminate speculation, waste, corruption and the endless fixation on endless growth.
In essence, this is a core concern of the Occupy Movement.
Here is a good video from The Guardian that explains some details about wealth and income distribution changes in the United States