Mistake #1: Obama Gave Advice to Merkel During Debt Crisis… Mistake #2: She Took It
Chancellor Merkel’s first mistake was seeking economic advice from ACORN community organizer Barack Obama. Her second mistake was that she took it.
Barack Obama has tripled the national deficit in the United States in one year. He’s spent more money than any person in history. His socialist plans for America require more irresponsible spending. Barack Obama has seen the unemployment rate nearly double from the rate during the Bush years. And, despite concerns about spending from the public he is determined to spend more, tax more and punish the producers.
Today The New York Times reported that Merkel took economic advice from Barack Obama:
Weeks of hesitant half-steps to address Greece’s debt problems had only worsened market worries about the euro, and were threatening the still-fragile economic recoveries in the United States and Asia. Now, Mr. Obama told Mrs. Merkel that the Europeans needed an overwhelming financial rescue to end speculation that the euro — and European unity — could crumble.
“He was trying to convey that he knew these were politically difficult steps that the leaders there had to take, that he had gone through them as well,” said one senior administration official familiar with the conversation. “And that, from his experience, trying to get out ahead as much as possible was the right way to go.”
That call was part of what a senior Treasury Department official called “one long conversation” with European leaders, who over an extraordinary weekend of late nights and early mornings overcame German resistance and agreed to a wholesale expansion of the bloc’s political and financial mission. Bending the rules, they backed the stability of all 16 countries that use the euro with loan guarantees adding up to nearly $1 trillion.
Today we’re already seeing how well these decisions played out. The market is down over concerns that Europe can meet its debt obligations.
Excitement over the euro zone’s mammoth $1 trillion rescue package gave way on Tuesday to doubts whether its weakest economies can meet their end of the bargain and deliver drastic debt cuts, driving the euro and stocks lower.
Today’s lesson: Never seek economic advice from an ACORN organizer.