Once again, the real story in Europe is the exact opposite of the rosy predictions made by the politicians. Even the German economy has ground to a halt. Numbers released yesterday tell the same sad story that has characterized the Eurozone for the past five years -- no economic growth -- at all.
Meanwhile debt levels in the Eurozone continue to escalate without bound. If the debt/gdp ratio was a racehorse, it would own the Triple Crown.
Mario Draghi notwithstanding, postponing the debt problems of Europe is not a solution to their problems. "Extend and pretend" does not work and has never worked. Sooner or later someone is not going to get paid.
Efforts to blame this on rich people, on Wall Street, or on the hapless George Bush are completely irrelevant. When you can't pay your bills, there will be big losers.
Besides massive debt problems, the Eurozone is plagued with non-competitive regulatory and tax environments, which the US is desperately trying to imitate. The health care solutions in Europe are now beginning to bear the expected fruit -- long lines, inadequate care, and VA style cover ups. Add health care woes and pension funding woes to the massive sovereign debt issues, how would anyone expect the Eurozone to have an economic future?
The legendary Texan, Senator Ralph Yarborough once described a political action as akin to "rats swimming toward a sinking ship." That pretty much sums up current American economic policy as the Obama Administration continues its efforts to "Europeanize" America. The predictable outcome is available for all to see -- the current Eurozone economy.