While speaking in the US capital on Tuesday, the International Business Times of India reported that Lagarde stated that, “Americans might ask themselves. ‘Why should what happens in the rest of the world concern us? Don’t we have our own problems?’ The answer is simple: In today’s world, we cannot afford the luxury of staying in our own mental backyards.”
America has been anywhere but its own mental backyard where the eurozone debt crisis is concerned. In fact, the U.S. Federal Reserve bailed out the eurozone through the year’s end in 2011. And the U.S. is the biggest contributor to the International Monetary Fund (IMF), which has also extended funds to troubled eurozone countries.
Obama has admitted from the beginning of the euro’s unraveling that he was watching the closely. And if he was watching Greece that closely, it stands to reason that he has been watching the other troubled countries as well. Italy and Spain would have been especially interesting to watch.
Back in November, not only was Italy supposed to be audited by the EU and the IMF, but according to the Christian newswire, Managing Director Larry Jacobs noted the significant impact of family issues: “Over the past 8 years of its socialist misrule, the Zapatero government painted a symbolic bulls-eye on the Spanish family and moral virtues — liberalizing and promoting divorce, instituting same-sex marriage and adoption, creating easy access to abortion, lowering the age of consent, eliminating parent’s rights, and mandating pro-homosexual education in the schools.”
It has even been suggested that eurozone countries need to surrender their sovereignty in order to save their economies, in spite of the fact that the euro is a faulty currency that was basically doomed to fail from the start.
If the eurozone is by any chance the “pilot program” for the remaking of America, sort of like Romneycare was the pilot for Obamacare, then what is happening in Europe is eventually coming here. While the dollar was not originally designed to fail as the euro was, the debt load that America is carrying isn’t going to be able to be sustained forever, especially as more baby boomers retire and need to pull on social programs that are not only presently grossly underfunded, but also in need of reform.
To borrow anconcept, if the U.S. is the 1 percent and Europe is the 99 percent, will we have finally paid our fair share when we no longer exist?