EU US Debt


Only the statist hates gridlock, they hate for the public to be involved in the process gumming up the works, by influencing their elected officials not to sell out on a plan that goes against their expressed wishes. In Europe, big decisions that effect the citizenry in major ways are done behind closed doors and revealed later. They loathe the American style of government where, when properly done, the people have input. KGS

H/T Fjordman

Gridlock in Washington

Europe Losing Patience with US Debt Delays

European leaders have long expressed confidence that the US would find a resolution to its ongoing debt impasse. But now there is growing concern that it won’t. German Finance Minister Schäuble has urged US lawmakers to act responsibly and others have warned of unpredictable consequences if they don’t.

For weeks, investors had seemed uncharacteristically calm in the face of the US inability to agree on a solution to the looming default. Traders who have become accustomed to running in panic from the euro at the slightest sign of debt concern in the European Union have shrugged off the Washington stalemate. “They’ll make a deal,” seems to have been the attitude.

That now seems to have changed. Stocks plunged on Wall Street on Wednesday, with the Dow Jones index dropping 200 points and interest rates on US bonds shooting up. Investors have also begun rushing to buy credit default swaps as an insurance policy against default.

Europe too is concerned. Just as the US urged the euro zone recently to accelerate its efforts to solve the Greek debt crisis, European leaders have now begun demanding action in Washington.

More here.

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