Some days there is so much going on that it is hard to decide what to write about. So, before getting to today’s subject, let me reference two articles that should be on your reading list.
From The Hill, is this story that has seemingly passed under the radar. “The Commerce Department is considering naming Arab Americans a socially and economically disadvantaged minority group that is eligible for special business assistance.” That’s what America needs another protected class of people. I have to wonder if, in twenty years, when whites will become a minority (unless there is a significant change to current demographic trends), if they too will be designated a protected class? Then we will all be assigned to our own tribe. Won’t that be great?
Robert Maginnis, writing for Human Events, has a thought provoking article on the escalating crisis in Syria. It’s a lose-lose situation for the United States and he makes a sound case that America’s strategy should be one of non-intervention.
On to today’s subject.
John Ellis has written an article for Real Clear Politics that has my blood boiling. Mr. Ellis starts out by referencing two articles. One article is by Ezra Klein, which concludes that “the outcome of the Eurozone crisis will tip the balance between President Obama’s re-election or defeat.” the second article is by Walter Russell Mead:
Walter Mead has a smart piece about the two simultaneous games of chicken being played out in the Eurozone as we speak. Game #1 is the mutual assured destruction stare-down between Germany (pay or die) and Greece (we die, everyone pays). Game #2 is the German-French face-off on the under-writing of Club Med (southern European) debt.
So far, so good. Klein and Mead are both correct. But, then Mr. Ellis shares his view of the European crisis.
The solution to the Eurozone crisis is, of course, a massive bailout. Everyone knows this. Part two of the solution is a series of gigantic loans to jump start growth across the Continent. There’s considerable argument about how this should be done (to say the least), but without economic growth the aging demographics of the Eurozone point to an almost endless economic stagnation – at best. Growth has to be on the agenda. (Bold added)
Oh, really? A massive bailout is “of course” the solution??? I’ll get back to this “of course” solution in a moment. In support of his contention, Mr. Ellis goes on to describe what he believes is a third game of chicken.
The question is: where does this bailout/loan money come from? The answer from all the Europeans (except the Germans, of course) is Germany. The answer from the Germans is: we know that eventually we will have to underwrite some of the bailout, but we will do it on our terms and we will not do it alone.
This is the third game of chicken that is being played out as we speak. German Chancellor Angela Merkel is facing off against President Obama in an advanced game of mutual assured destruction.
Basically, her message to the US president is this: “I will not lose a single vote if I force Greece out of the Eurozone. If the Grexit is messy and leads to contagion, which it almost certainly will, then the crisis will escalate to a much more menacing level. At that point, the US will have to demand that the IMF under-write a massive Eurozone bailout or we’re looking at 1930s Europe on steroids.”
“So, Barry, step up now if you hope to have any chance of re-election. We’ll help finance the bailout, but only if the IMF under-writes it. We can talk about percentage splits when you’re ready. But get ready and fast. Events may soon be in the saddle.”
“And one last thing: don’t send little Timmy Geithner over here to lecture us anymore, okay? Deals like this get done at the presidential level, Barry. So man up, get off the golf course and come to the table.”
Okay, a cute story. I will admit that it would not be out of character for Angela Merkel to play such a game of chicken with Obama. But, let’s get back to the “of course” solution of massive bailouts.
Even our sock puppet president is not ready to commit political suicide, in my opinion. and, agreeing to an IMF bailout of the EU would be political suicide. Furthermore, how would such a bailout work? The European sock puppets are not just going to divide it up between the Club Med basket cases. Their plan, to borrow a term from our Fearless Leader, would be for the EUC to make “investments” in projects of the Club Med that they believe will help grow their economies. But, Europe does not need more infrastructure. So, they would be picking and choosing winners and losers using crony
capitalism socialism. Sound familiar? My friends, it will not work any better in Europe than it did in the US.
i happen to agree with those that say growth must be part of the solution in Europe. The same is true here at home. But growth will not come from government spending and higher taxes. Why is it that no one is talking about promoting growth by coupling spending cuts with tax cuts? To answer that question, I will need to put on my tin-foil hat. The sock puppets of Europe and the US, for the most part, do what the puppet masters tell them to do. The puppet masters are very smart. They always have a plan and back-up plans. If you think the economic chaos that is infecting the world is a coincidence or if you think the chaos in the Middle-East is a coincidence, you may want to re-think your opinions. World-wide economic collapse and/or world-war are on the horizon. The puppet masters, or as some call them, the banksters, win either way. They have all of their chess pieces in position.
Well, that’s what I’m thinking. What are your thoughts?