Today President Barack Obama said the United States stands ready to do its part to help the continent, even as the White House ruled out any financial contributions from U.S. taxpayers. (video Washington Post)
But Wait! Obama would be in favor of more aid to Europe from the International Monetary Fund, where the United States is the biggest shareholder. (potato, potato, -- tomato, tomato) The money still comes for US taxpayers.
Instead, the Obama administration has focused on offering advice on rescue programs and how to make tough political decisions drawn from its experience during the U.S. financial crisis of 2008. Bwahahahahah!
Obama urged the European Union officials to act quickly and decisively to resolve their sovereign debt crisis, in another "pot-meet-kettle" moment.
No need to worry, Barack Obama and little Timmy Geithner (U.S. Treasury Secretary Tim Geithner) are on the job.
The Euro Area Is Coming to an End, by Peter Boone and Simon Johnson:
Investors sent Europe’s politicians a painful message last week when Germany had a seriously disappointing government bond auction. It was unable to sell more than a third of the benchmark 10-year bonds it had sought to auction off on Nov. 23, and interest rates on 30-year German debt rose from 2.61 percent to 2.83 percent. The message? Germany is no longer a safe haven.
Since the global financial crisis of 2008, investors have focused on credit risk and rewarded Germany with low interest rates for its perceived frugality. But now markets will focus on currency risk. Inflation will accelerate and the euro may break up in a way that calls into question all euro-denominated obligations. This is the beginning of the end for the euro zone.
Here’s why. Until 2008, investors assumed that all euro- zone sovereign bonds, as well as bank debt, were risk-free and would never default. This made for a wonderfully profitable trade: European banks could buy government debt, finance it at less expensive rates through funding provided by the European Central Bank, and pocket the spread. (continue reading at Bloomberg, hat tip Marcus Wilder)
Heaven help us all.