Can any one say Irony?
Via Beltway Confidential:
President Obama’s spokesman warned the new socialist president-elect of France not to implement his campaign agenda of ending austerity measures, indicating that such a reversal could damage the world economy.
“A balanced approach . . . Both fiscal consolidation and efforts to boost the recovery is the right approach for Europe,” White House Press Secretary Jay Carney told reporters today. “That’s an approach that he thinks ensures that the recovery continues while putting our fiscal house in order.”
The Euro never made sense. The various European economies are incompatible with each other, and without a single, central budget authority, this was bound to happen sooner or later. The issue for the US is whether NATO will continue with the various member states at each other's throats over economic issues.
The Greek elections have resulted in another stalemate, with no one able to form a government (and the Neo-Nazi party taking 7% of the vote, which means that they will have seats in parliament for the first time ever). France's vote is basically a temper tantrum over having to pay bills that they never thought would come due, and is also a slap at Brussels, which needs the larger economies to cover the failures of the smaller ones. The real question is whether Germany will remain part of this fiasco, now that France has abrogated its role as one of the two adults in the room.
Based on what Hollande is promising, this can't possibly end well for France or the Euro. In a painful way even for them, it does advance Germany's ambition to be the dominant Central European power. Effects on us are pretty unpredictable, but certain to strengthen the dollar in the short and mid-term which is good for some of us and bad for others.
France has almost no choice but to fall to islam. All of Europe will be at war within a short time. France will refuse to cut their bloated government and demand that Germany continue its support. Germany will refuse.
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