Sixty-six years after the total destruction of the German Reich, it is Germany and its chancellor that are directing the future of the European experiment. And that means Angela Merkel and her center-right government has more influence over the next few months of the American economy’s recovery than Federal Reserve Chair Ben Bernanke. And, by extension, that means Ms. Merkel may decide the fate of President Obama’s re-election. For if the American recovery stalls, or voters come to believe the economic future is shaky due to European turmoil, Obama will continue to struggle with voter distrust of his economic leadership.
Watching the European effort to stave off the financial crisis has many potent messages for Americans. Fiscal irresponsibility is the greatest threat to a nation’s and people’s sovereignty. Italy, Greece, Spain, Portugal and Ireland are about to lose their sovereign control over their budgets, their debt and their taxes to Brussels.
Fiscal irresponsibility or the inability to go into the financial marketplace and conduct business because a judgment has been made that our ability or willingness to repay is poor is the greatest threat to American sovereignty, or the sovereignty of a state, such as California or even Colorado.