Broke is Broke

Good Morning Followers,

Maybe I should go back to school and retake MACRO Economics. I figure this due to the reasoning that I cannot understand how Cyprus, Greece, Protugal, Spain and Italy are on the verge of or already broke; yet the EURO is still 30% stronger than the dollar. If we are using the theory of backed money by resources then this doesn’t play out. If we are using the theory of speculation to back the money then it doesn’t play out. Our Monetary System as we know it is failing. All that a dollar really is is a piece of paper that I trust will get me a good or service when I give it to someone else. Maybe someone with a degree in complete bull poop can explain this better to me; how being in the red raises that value of your currency.

Any Thoughts?