The debt ceiling debate: view from Germany
Here’s what Germany’s largest daily newspaper Bild Zeitung has to say about the politics in the US around the debt ceiling:
"Playing poker is part of politics, as is theatrical posturing. That’s fair enough. But what America is currently exhibiting is the worst kind of absurd theatrics. And the whole world is being held hostage.
"Irrespective of what the correct fiscal and economic policy should be for the most powerful country on earth, it’s simply not possible to stop taking on new debt overnight. Most importantly, the Republicans have turned a dispute over a technicality into a religious war, which no longer has any relation to a reasonable dispute between the elected government and the opposition."
"If it continues like this, the US will be bankrupt within a few days. It would cause a global shockwave like the one which followed the Lehman bankruptcy in 2008, which triggered the worst economic crisis since the war. Except it would be much worse than the Lehman bankruptcy. The political climate in the US has been poisoned to a degree that is hard for us (Germans) to imagine. But we should all fear the consequences."
The conservative daily Die Welt writes disparagingly:
While Europe’s chaos is obvious to the Europeans and the rest of the world, there are few signs of self-doubt or self-awareness in the US. In the middle of the poker game between the two political parties to prevent a national default on Aug. 2, polls show that 77 percent of Americans believe that they live in the world’s greatest system of government. Just as many are convinced that life is only worth living as an American.
A lot more of that from other German dailies here: ‘The US Is Holding the Whole World Hostage’ – Spiegel
Sources:
“polls show that 77 percent of Americans believe that they live in the world’s greatest system of government. Just as many are convinced that life is only worth living as an American.”
Perhaps there lied the main difference between the EU and the US. European citizens don’t really feel European.
Right now US seems to be well on its way towards voluntary default, silly as it may be. The crisis may be avoided this time, but the same situation will arise once again, and be used for political purposes.
At the end of the day, as long as we’re talking about a democracy, even if flawed, a huge debt induces fear. Politician after all, sooner or later, will do whatever the public wants if it gains them enough votes.
tell the germans to commit to buying newly US debt over a long period of time, and we, as Americans, will agree to raise the debt ceiling.