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"The Temptation to Save the EU from Itself"

What? John Bolton, a former US ambassador to the UN, says that Europeans have to save the Euro crisis? No way! Uncle Sam has to solve all our problems. We Euro weenies are just kids.

Okay, I get it. It's just a New York Post headline. But still. The premise behind the headline is.puzzling.

So what is John Bolton saying exactly:

As the euro encounters even graver difficulties, America should resist the temptation to save the EU from itself. We must avoid propping it up directly through loans or financial assistance or indirectly through the International Monetary Fund.

"Temptation"? Seriously? Given all the short- and long-term US financial problems, are Americans really tempted to "save the EU from itself"? 

I am not an IMF expert, but is not the fund's purpose to help member states, who are in trouble, but have a plan to bring their finances in order? The EU is not a member, but Greece, Ireland, Spain are members. As sovereign countries they can ask for support. The IMF should grant the support, especially if it is in the interest of the world economy. The IMF's purpose is neither to promote the Euro nor to defend the US-dollar as the world's leading reserve currency. A few years ago, pundits debated whether the IMF is obsolete.

Since the US is the biggest contributor to the IMF, it also gets to influence a country's recovery policies, which is one of the reasons, why some Europeans (France?) used to be against IMF involvement in the Euro crisis.

I agree with Bolton's conclusion, which is just common sense and therefore boring and waste of ink: "We should worry about President Obama's staggering deficit spending and let Europe worry about its own."


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Pat Patterson on :

I agree! I think what he is concerned about is that many large institutions are now tempted or even acting in disregard of their normal methods. That somehow the crisis is so great that their rules are being ignored in a panic. So instead of the IMF acting as a loan guarantor to help the country gets it finances in order it is being used to simply prop up avoiding having to make some changes.

Kevin Sampson on :

‘The EU is not a member, but Greece, Ireland, Spain are members. As sovereign countries they can ask for support.’ But just how ‘sovereign’ are they? All the EU nations lost a good deal of their sovereignty to the Treaty of Lisbon, as evidenced by the fact that none were allowed to hold any kind of vote on the issue. And by all accounts the citizens of Ireland and Greece are none too impressed with their governments ‘sovereignty’ right about now. So your claim that the PIIGS and the rest of Europe, except maybe Germany, are sovereign states is debatable. And, as you point out, the EU is not a member.

ROA on :

I agree that Bolton’s conclusion is common sense, but the original TARP legislation which was supposed to aid US banks also helped foreign banks so perhaps it needed to be said: “Foreign-owned banks also benefited from the Fed's commercial-paper facility. The Korean Development Bank, owned by the South Korean government, used the program to the tune of billions of dollars, including a $407 million short-term loan on a single day. Many foreign banks, including the French BNP Paribas, the Swiss UBS and the German Deutsche Bank, took extensive advantage of various programs. Even a major bank in Bavaria benefited, as well as another one headquartered in Bahrain, a tiny island country in the Middle East.” (Washington Post Dec 2, 2010)

Kevin Sampson on :

Not to worry, China to the rescue!

Joe Noory on :

The Fed swap window being open to the ECB is a raw deal for the US. We will be buying inflated Euros expected to adjust downward with deflated dollars expected to rise up. Buying the dollars back will cost quite a bit. This goes as far back as Sandy Berger's frustration at trying to put together a coalition for Bosnian intervention in 1994/1995. His conclusion was that "this was the time Europe could shine", demostrate itself, etc. They really didn't. The whole thing went on hold for 9+ month, when the Europeans made it look like the US was the intransigent party. Paris is closer to Sarajevo than St. Louis is to Washington DC, and they basically paid lip service with symbolic forces and let it burn for 3 years.

Marie Claude on :

tiens tiens Joe ! $2tn debt crisis threatens to bring down 100 US cities "Paris is closer to Sarajevo than St. Louis is to Washington DC" y'en a qui vont pas s'amuser ! Et alors, it's not a reason to interven in a post sovietic aeras, that were US predilections so far, I wonder why Ms Allbright wanted that a US base absolutely settled in Bosnia...

Joe Noory on :

In the context of a continet full of people willing to tell the rest of the world what they should do, your comment, and this "none of your business, America" post is hypocritical.

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