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Saturday, June 9, 2012

Merkel Would Be Wise Not To Listen To Obama

Taking financial advice from President Barack Obama would be like opening a Big & Tall man’s clothing shop in Tokyo. What does this man know about money except to print and spend it?  Merkel should stick to her calls for austerity.
Contrary to popular media trumpeted misconception, the Stimulus spending package Mr. Obama initiated did not take the United States out of financial crisis; it only put it off for a spell. The U.S. is still in big trouble. Our “Too Big To Fail” policies have put us in a holding pattern right now but we won’t be able to hold up our massive bureaucracy for much longer. That’s why we need another sucker somewhere.

Having Germany underwrite Eurobonds to keep the Eurozone afloat for, let’s say, after the November presidential election, would be a folly of epic proportions. It’s just more of Obama’s soak the rich philosophy that Germany has so much yet Greece and Spain have so little. It’s a shame they didn’t pay attention to their business like Germany did; now Germany will have to pay? Tough sell. The financial cost for THIS YEAR is in the 900 Million Euro neighborhood. What do you suppose it will be NEXT YEAR? Earlier this year the European Central Bank already issued over a Trillion Euro Long Term Refinancing Operations bonds and they did nothing to stop the EU debt crisis so throwing more money at it is going to help? Guess again.
First of all, no nation on God's Green Earth has spent itself into prosperity on borrowed cash. All this money is supposed to be paid back but if it only goes to propping up existing bureaucracy, then it’s all going to waste. The money will be spent and the economy will not be any bigger but the bill for the damages will be. Obama is proposing the same medicine that got the EU into this mess; spending without producing. Without a corresponding increase in production or decrease in overhead, nothing will change except more wealth will be lost. This time German wealth.

Why should the German people, who have done the right thing by not overextending themselves while watching the United States, Greece and Spain grow their money bubbles, now have to go into debt and put off their own pursuits just to bail out a bunch of people who spent money they hadn’t earned yet like there was no tomorrow? It makes no sense. If she falls for Obama's line, I'd like to see Merkel explain it to the German people.
Just because President Obama, a guy who’s never held a private sector job, calls you up and tells you that your austerity measures are too harsh when he’s done nothing but run massive deficits, do you listen to this guy? What does he know about financial health?

Holding Obama and his fiscal know-nothings up until election time at the expense of the German people doesn’t seem like it should be on Angela Merkel’s list of things to accomplish. I wouldn’t buy a used car from this man let alone go along with his proposal to float almost a Trillion Euro to prop up EU countries that only want to avoid any responsibility for their negligent actions.
Only time will tell if Ms. Merkel has Obama’s number or not.

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