NANNY STATES SIDE WITH O-MAN’S IDEOLOGY – BUT LOOK TO GERMANY TO BAIL OUT THEIR BANKS
Remember – a month or two ago – when the Obama Media Group trumpeted the story about how most of Europe was siding with the O-man on his “pro-growth” inititiave (tax, borrow and spend) and opposing Germany Chancellor Angela Merkel’s admonitions of austerity? It was almost as if the OMG were saying to America, “See, Europe agrees with Dear Leader; why can’t you people see the light?” That was then, this is now.
As I asked at the time; if tax, borrow and spend is an economically superior ideology to a policy of deficit-cutting by lowering spending, why isn’t it Germany who is desperately seeking a bailout from Greece, Italy and Spain? Hell – why aren’t Greece, Italy and Spain seeking a bailout from the O-man if his record deficits and every-increasing level of debt are working so well? Whether the Regime has purposely set about weakening America is another topic for another post; suffice it to say for now that the America of Barack Obama is not the America of his predecessors. Europe no longer views the U.S. as the financially stable force it once did – particularly after the Buck-Passer in-Chief began throwing Europe under the bus – along with everyone but himself – for America’s continuing economic mess.
Anyway, back to the failed states of Europe. Christine Lagarde, head of the International Monetary Fund (IMF), is recommending a series of “crisis-fighting” measures to ease the “acute stress” of EU countries that have spent decades building fat nanny states and providing cradle-to-grave care for their people. Translation: France’s Lagarde is pressuring Germany to bail out the teetering banks of pretty much the rest of Europe.
Lagarde even went so far as to suggest that Berlin should bypass its neighbors’ governments and funnel funds directly to the banks. Sounds like she fears the age-old problem associated with sending aid to the countries of Sub-Saharan Africa, which never seems to reach the intended destination, doesn’t it?
German officials have resisted such measures. Can anyone blame them? If your neighbor had a crack cocaine addiction, would you be open to the idea of helping him fund it?
Another Lagarde recommendation – likely to fall on deaf ears in Berlin – calls for eurozone leaders to consider issuing bonds or debt “in some form” (borrow more money, a la the O-man) backed by the governments of all member countries. Merkel opposes the idea because it would put German taxpayers on the hook for foreign debts – and increase Germany’s cost of borrowing. (Translation: Why should Germany be penalized for the irresponsible financial behavior of its neighbors?)
Seems to me, if one were to go about bailing out a sinking boat, it would first make sense to stop the leak. As long as the likes of Italy, Spain and Portugal attempt to have their cake and eat it too – buy into the O-man’s tax, borrow and spend philosophy while begging everyone from the IMF to the Germans to bail them out – Merkel’s answer should continue to be a resounding “Nein!”
How ironic; a country who twice threatened to destroy Europe now finds itself as the only country able to save it.
By the way, guess who contributes nearly three times more to the IMF than the second largest contributor – accounting for almost 20% of total IMF funds? Hint: its initials are U.S.A.