This week, at Camp David, well Reuters does it better:
U.S. President Barack Obama will press European leaders to ease up on fiscal austerity and focus on economic growth at a summit on Saturday that will discuss ways to stem turmoil in the euro zone and head off the risk of global contagion.
Ok, here’s the deal. The reason the U.S. is doing as well as it is with regard to our bond rating and the dollar is that Europe is such a clusterf@¢% that the U.S. is a less crappy bet with your dollars.
There are four possible reasons that President Obama is pushing Europe to move away from austerity:
- He believes in ‘Keynesian’ economics and that government spending is the way to go, that you can spend your way to prosperity.
- He is hoping that European fiscal irresponsibility can make us look good, thus propping up our credit rating by being the last ‘safe’ refuge for investors.
- He is attempting to foment regime change in Germany and other countries run by reasonable people. He’s already up in French President Hollande’s grill, so to speak, and hoping he can bring about the election of likeminded folk in the rest of the eurozone.
- It’s how he’s approaching the U.S. debit crisis, so he’d look like a total tool being for European austerity but against American Austerity. God forbid he agree with Paul Ryan.