“The ongoing European crisis presents the biggest risk to our economy,” Treasury Secretary Timothy Geithner said in congressional testimony Wednesday. “The economic recession in Europe is hurting economic growth around the world, and the ongoing financial stress is causing a general tightening of financial conditions, exacerbating the global slowdown.”
This all seems so unnecessary to me. Yes the cradle to grave security blanket of the EU needs some tweaking. No argument there but the whole euro currency thing is a false construct created without a political or financial union. The only way out is unconditional guarantee of sovereign debt, one for all, all for one or break-up the euro farce. You can’t expect austerity to work only on the backs of the workers and retired pensioners. You have to allow debts to be reduced as well. Go on Spain, Italy, Greece. What are you waiting on? Leave the euro!