Obama says U.S. has tried not to scold Europe - headline on Marketwatch.comI'm not really sure why Obama thinks he has a right to "scold" Europe. Scold Europe over what? Over trying to politically manage the kind of systemic problems that are multiples worse/bigger in the United States?
How about Obama warning Greece to not leave the Euro zone? LINK
Where does Obama feel like he has right exhibit hubris like this? Is this the sense of entitlement one subsumes as being an extensive life-long beneficiary of affirmative action?
What Obama fails to understand is that many of the financial problems in the EU banking system have their roots in the American banking system. It's funny because I have not noticed any EU leaders congratulate themselves over refraining from "scolding" the U.S. over MF Global, Lehman, Madoff, AIG, Enron, ad nauseum. "Hubris" can be defined, with reference to Greek tragedy, as an excess of ambition or pride which ultimately leads to the ruin of the person exuding hubris. I would say, in this context, Obama has likely put on a tragic display of hubris.
Furthermore, he exuded serious ignorance. I suggested in an earlier blog that the Fed/Obama administration will use Europe as one of its excuses for more QE/Government-borrowed stimulus. Obama used his speech on the economy today to set that up. Ironically, per this report posted on FT/Alphaville LINK , U.S. exports to the Euro zone account for a mere 3% of U.S. GDP. Even if Europe's import demand from the U.S. disappeared completely, it would have a negligible effect on our economic output. So how can economic weakness in Europe be the cause of economic issues here? Europe has been nothing more than a device for the U.S. elitists to divert attention from the much more serious systemic problems in this country.
Expect a lot more Euro-bashing from the Obama people over the next few weeks leading up to some serious money printing and Government borrowing/spending. As an aside, I was driving down I-25 through Denver last night and I saw a sign, which preceded a bunch of annoying road work, which proclaimed that the construction being done was part of Obama's spending to put America to work. Ironically, it was just a couple years ago that a massive $13 billion overhaul of I-25 was completed. I don't understand why the Federal Govt has to spend more on I-25 so soon. Irritatingly, as I drove by the area where the work was supposedly being done, I saw several workers in orange vests hanging out and sitting on the road barrier. I guess these workers were just taking after the guy responsible for their paychecks (Obama) and were expecting to get paid while someone else does the heavy lifting.
And last, the real reason the U.S. elitists fear an EU financial implosion is that it would take down our banks with it, as our banks have trillions in derivatives exposure to the EU financial system. Please note: the derivatives have absolutely no contribution to economic growth/health. They are, instead, a way for Too Big To Fail banks - like JP Morgan and it's $100 billion whale bet - to use Taxpayer guaranteed money for making speculative bets.