European Troubles

Posted by Troy on 21st May 2012 in Current Events

Obama has taken to counseling the EU on their financial troubles.  He is talking Germany down from demanding austerity measures from Greece and other debtor nations.  Naturally, the person you’d want to turn to if you found yourself drowning in debt would be Obama.  The only other no brainer would have been calling up Teddy Kennedy for AA support (prior to his demise).  Yes, no one can tell you how to dig yourself out of a recession and debt crisis than Obama.  This much is clear.  Good going Europe.

To all those people who are pro-stimulus (Keynesian economics/debt spending), there is some argument for this.  This argument would be that cutting everything off 100% would be more damaging.  Fine, so be it.  What I’ve found in the study of macroeconomics is that it fairly parallels microeconomics.  As such, thinking in micro-terms helps some people .  If you are drowning in debt, taking out another credit card can stave off bankruptcy.  However, if you do not change your spending habits and turn your deficits into surpluses quickly, you are merely postponing the inevitable.  The European Union (and America for that matter) must start turning their deficits into surpluses and paying off their debts.  Europe really needs to start this process in 5-10 years, and we have 10-15 years to get our act turned around.

If Europe goes down, our stock market will tank, and Obama WILL lose.  This is why he is pushing for more deficit spending.

Long Live the Constitution!

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