Something To Consider Before We Bail Out The Eurozone
It’s beginning to look a lot like Christmas in the Eurozone. No; sadly, the failing and fumbling Postmoderns haven’t been laughed out of power. No, the masses of Europe have not returned to their spiritual gravamen. But, given the impending Greek default, they sure do want something fungible to jam in their stockings.
Never worry; never fear; being too big to fail means you can be of good cheer. After Timothy Geithner amuses the audience at Open Mic Night by telling other people’s governments to collect their taxes and not spend too much, Uncle Sam will again rescue Europe. Lafayette, here we come.
Before we shower our partners and NATO allies with money we don’t even have, let’s stop and ask ourselves if anyone in Europe would bother if the US were in similar circumstances. In order to answer this question, it is helpful to study the European reaction from back when we were in serious trouble in the Fall of 2008. Our good buddies, the Europeans, described this crisis as The End of Arrogance
German foreign trade negotiator, Bernd Pfaffenbach saw millions of Americans losing their 401K savings and half the value of their residence as a great opportunity to gloat about how superior the European Way truly was.
“One can see that we are on a more solid base,” says Pfaffenbach, who refers to the crisis as a “purifying storm.”
– Der Spiegel
As the American economy suffered, Giulio Tremonti, Italy’s Minister of Finance, revealed the ugly pettiness of the Eurocrats towards all things American. He took his opportunity to cheap-shot Fed Chairman Alan Greenspan below.
“Greenspan was considered a master. Now we must ask ourselves whether he is not, after [Osama] bin Laden, the man who hurt America the most.”
The two Eurocrats quoted above were the civilized examples of European gloating over American misfortune. Some in Europe were even demanding to know why they weren’t getting to watch people jump out of buildings on Wall Street. Apparently they didn’t have their popcorn ready as they watched it happen soon after the 9-11 Attacks. People all over Europe gloated, cheered and laughed as the US stock market tanked in the Fall of 2008.
But now, the worm has decidedly turned. Greece heads towards default, and all the stable, superior, smug, gloating Eurocrats are hoping that “someone” will show up and save the day. That “somebody” would officially be the IMF. But, the IMF relies heavily on the US to finance its ongoing benefice towards the spend-thrifty.
If Greece goes, the rest of the so-called PIIGS would probably follow in rapid succession. We could then learn whether Giulio Tremonti was any better for Italy than say, Alaric, The Visigoth, or Gaiseric, The Vandal.
But, no, the US will foolishly ride to the rescue and bail this insulting fop and his entire ungrateful cohort out of their latest, self-inflicted mess. The Eurozone will be deemed “Too Big to Fail” even if it is functionally too stupid to live.