Western Leaders consider themselves to be the New Royalty and Privileged Class,
and do not have a clue what their average citizen is going through!
While the average working American is wringing their hands trying to make ends meet while facing rising gas prices, rising food prices, the threat of layoffs, and their retirement accounts shrinking rapidly; and those unfortunate Americans who were gainfully employed prior to the Depression of 2008 but now are trying to make ends meet on a $450 or so per week unemployment check, ALL OF THE MAJOR WESTERN WORLD LEADERS ARE OFF ON HOLIDAY!
Obama: Leaving for a vacation on Martha’s Vineyard next week for a 10 day holiday.
US Congress: Off for a 5 Week vacation for the whole month of August.
Cameron (UK): Vacationing in Italy. Cut short his vacation to deal with the fact that London was burning down!
Sarkozy (France): Vacationing on the French Mediterranean (he did return for one day for a meeting).
Merkel (Germany): Vacationing in the Italian Alps,
Zapatero (Spain): Vacationing in southern Spain. Came back to meet with his ministers.
Berlusconi (Italy): Is actually working and trying to get the G7 group to meet to deal with the global meltdown. Can’t, they are all on vacation! (G7 = US, France, Italy, UK, Germany, Japan, & Canada)
Meanwhile, the European Central Bank (ECB) is borrowing money from the United State’s Federal Reserve, Ben Bernanke, to prop up Spain, Italy, and Greece. Where does Bernanke get the money to loan the ECB? He prints it, of course, so you end up subsidizing the ECB via inflation of the US Dollar…
Lack of US Leadership, What Should Have Happened:
Obama and our Congress should have started real deliberations about our debt and the establishment of a budget for the US a year or so or more. We have been operating without a budget for over 800 days and that should be a criminal act by the President and Congress. Then, assuming they negotiated, debated and really dug in and came up with some real, detailed, solutions, those solutions should have then been disclosed to the American Public and a period of at least two weeks allowed to lapse before Congress adjourned and went home to their States/Districts to meet with their constituents. Then, after a 3 week recess, Congress would then reconvene and debate openly which solution to approve or reject. Once Congress passes one of the solutions, that would go to Obama for approval or rejection.
This is the process our Founding Fathers envisioned. Unfortunately today, we are constantly forced into one emergency after another and legislation is thrown together with disastrous results. If we would have missed the August 2nd fictitious deadline to raise the debt limit would we really have had our credit rating downgraded? Oh I forgot, we were downgraded anyway. The only people who were surprised were the politicians and media in Washington. The average American, 70%+ according to polls, got it and knew the solution Washington came up with stunk to high heaven. S&P apparently agreed!
Step 2 US World Leadership:
Then, after coming up with a US solution, the G7 should convene in a televised series of meetings to discuss the solutions for the Euro Zone. Any impact on the US, via the Fed or via our direct intervention, should be disclosed openly to the American Public. The G7 should then propose several possible solutions to get Europe out of their financial abyss in the long-term. Throwing cash at Greece or Spain isn’t a solution. The solution has to include real governance changes and all of the European leaders must share in the outcome. These solutions should be made public and openly debated in the legislatures of the various nations. These nations must then adopt or reject the solutions.
The actual survival of the Euro itself should also be on the table as its existence and the existence of the European Central Bank is central to this debate. All Central Banks have been historically tied to a Nation whereas the ECB is a central bank for multiple nations. This is tenuous at best as each of the European nations have their own unique economies and social structures. None of the nations are the same in terms of GDP or economic base. What is happening is that the more affluent and more disciplined economies are being made to subsidize the less affluent and disciplined countries.
REDISTRIBUTION OF WEALTH ANYONE!!!!
What will inevitably happen if the US does not fix its problems; if the G7 does not deal with a long-term solution for the Euro Zone, the entire Western World will go down in flames, perhaps literally.
THIS IS A FAILURE OF LEADERSHIP, PERIOD!
Nikita Khrushchev said on November 18th, 1956 that “Whether you like it or not, history is on our side. We will dig you in” (translated to mean we will bury you) he must be laughing in his grave that Russia won’t even have to dirty a shovel to help in our demise. Our Politicians will do that for them!