Economic growth is the answer to Europe's problems, as it is for America's problems, but I don't see Greece, Italy or Spain sustaining economic growth and creating new wealth at the level needed unless they change direction from statism to free market economies. But in order for free markets to work, they must be embraced, believed in, and this just doesn't to be in the cards. I think stock traders were a little premature in their optimism.
Entries in Greece (26)
Germany is in danger of getting so deep in the EU financial crisis she can't get out without tremendous economic damage. I don't think private investors will jump at the opportunity to become entangled in this mess. There's little reason to believe that Greece, Spain or Italy will fundamentally change anytime soon, not with their citizens entrenched in an entitlement mindset. Those asked to sacrifice will point to goverrnment waste and corruption, and the governments won't have good answers.
Plus, with Greece, Spain and Italy drained dry, Germany won't have captive customers. The new global economy is tough, and only the leanest, most innovative, most flexible, most productive, most free and most efficient will thrive. America, too, has a long way to go.
Timothy Geithner wants Europe to follow America in printing money in order to save the too-big to-fails of the world -- Greece, European banks, Italy, Spain, and so on. Forget about cutting spending, just print more money. Geithner is trying his best to undercut rational efforts to make Europe financially sound -- it's not enough for him to be on the team that has irrationally inflated our money supply, now he wants to be on an international team to flirt with global inflation that places a hidden tax on everyone.
Hmm, Krugman claims we're practically living like monks, while Heritage says all the stimulus money hasn't even been spent, and some of the energy money hasn't been spent because energy regulations won't allow it. Krugman makes its sound as if we're on some austerity program, then compares it to blood-letting -- un-freaking-believable. Krugman is losing his grip on reality. Also, most of the austerity measures planned in Greece haven't been implemented. Maybe Krugman is just confused.
America should remove its presence for the mideast. One powerful nation or another has intervened in the mideast for centuries and have paid the price, plus the mideast has been prevented from dealing with its own problems. Who knows what the Arab Spring means or how it will turn out, but it's their business.
Countries like Greece and Turkey have more business trying to influence the region than does America, and with shifting relationships between Israel and Greece then Israel and Turkey then Turkey and Greece, and with Iran in need of economic diversity if they want to be a powerful leader in the region, we'd do them all and ourselves a favor by bringing our weapons, plans and soldiers home. The countries of the region have many reasons to grow economically in peaceful trade and no good reasons to kill one another, even Arabs killing Jews or vice versa. There are enough secular economic interests in the area to balance out the religious fanaticism, and if moderate Islam works to separate State and religion, this could be an area of dynamic economic growth. It will never be culturally like America, but it doesn't have to be -- they can find their own balance of economic growth and cultural integrity.
America should take its response to 9/11 as a victory -- even the most radical of groups or nations will think twice before attacking America as they did on 9/11 -- they know that the next response will be much worse. As I've said before, terrorism is self-defeating, because if it's successful it fails. If Americans become truly terrorized, the gloves will come off and it'll be left to the raw savagery of power to settle any disputes. Even Iran knows better than to invite an American attack, and Iran has much to gain by working with Greece, Turkey and even Israel and everything to lose by fighting a war with us.