On Europe and Her Debt

Posted by Admin

Europe has a rising debt problem that is now branching out and making itself known in other ways. It is effecting the Euro, the strength of the dollar,regional economies, etc. Greece, Spain, and Portugal are sinking under the heavy weight of debts they have accumulated. The European Union, consequently, is looking quite weak because it has no way to combat it’s member-states’ massive debt. The New York Times has an excellent article identifying what they think are the problems.

Whether he likes it or not, Jean-Claude Trichet is not just the president of the European Central Bank. Mr. Trichet, 67, is also the de facto president of Europe, at least for the 16 nations that rely on the euro as their common currency…But as investor alarm about Greek, Spanish and Portuguese indebtedness increases, the crisis has highlighted the fundamental weakness of the European monetary union. With no strong political arm to insure that members observe debt limits set by treaty, the responsibility ultimately falls to Mr. Trichet to try to bring the miscreants into line even as he struggles to calm jittery markets.

I will not make any judgments about whether the author, Jack Ewing, is correct–I’ll leave that to the readers, but it is certainly a persuasive article which I encourage everyone to read.