April 28th, 2014
04:03 PM ET

What I'm reading: The eurozone’s dangerous path

By Fareed Zakaria

“One only needs to look at the United States to see how dangerous – and indeed unsustainable – the eurozone’s path has become,” writes Hans-Werner Sinns for Project Syndicate. “When one of the US states runs up too much debt, creditors become jittery and austerity measures are introduced to avert the risk of bankruptcy – as has happened in the past few years in California, Illinois, and Minnesota.”

“But all of that occurs while the debt/GDP ratio is still minimal and clearly below 10 percent, because creditors know that no one will come to their aid. The Federal Reserve will not buy their government bonds, and the federal authorities will not issue any guarantees.”

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“The existence of the global middle class, however fragile, is a great success of globalization. But will this success deepen (by making slippages less likely) and broaden (by bringing more people into the global middle class)? This depends foremost on the continuation of high rates of growth in large, still relatively poor, countries,” argues Branko Milanovic in the Financial Times. “While the attention of the world was focused on Asia, the growing population in Africa means the “battlefield” on which both the reduction in poverty and expansion of the global middle class will be fought is gradually moving there. Overall Asia and Africa have survived remarkably well the worst years of the Great Recession. If their growth rates do not decelerate, we can look fairly confidently to the growth of the global middle class. But many dangers loom.”

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“Given the massive investment in diplomatic efforts over the past decades, it’s difficult to imagine that U.S. policy can be redirected toward a solution beyond two states,” writes Matthew Duss in the American Prospect. “But American policy is going to have to confront openness to other answers on the part of Israelis and Palestinians. The logic of the Oslo process that created the Palestinian Authority was that it was a transitional period leading to the creation of a Palestinian state, in which the Palestinian people would enjoy sovereignty and self-determination. Because the occupation was nearing its end, the thinking went, it was better to focus on the ultimate goal and not get distracted arguing about the daily challenges that Palestinians face. After almost 47 years of occupation, that thinking may need to change.”

 


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soundoff (24 Responses)
  1. Joseph McCarthy

    The creation of the Eurozone was never a good idea to begin with and now it needs to be dissolved

    April 28, 2014 at 6:14 pm | Reply
    • banasy©

      Good grief Joseph McCarthy, such lingo. My mother certainly didn’t raise me that way. Incidently, are you a member of the Tea Party? I thought so. There is no room for such misguided ideology in this forum. It’s as simple as that!





      See how irritating that is?

      April 29, 2014 at 12:16 am | Reply
      • Crow T.

        I see how irritating it is to read a non sequitor reply. What are you trying, but failing, to say to JM?

        April 29, 2014 at 8:23 am |
      • Joseph McCarthy

        What I'm trying to say Crow T, is that the idea of uniting Europe was never a good idea as Napoleon Bonaparte, Adolf Hitler and the Communists in Eastern Europe found out the hard way. By the way banasy, thank you for the laugh I got from your post above. I enjoyed it.

        April 29, 2014 at 10:59 am |
      • banasy©

        Shut up, Meg/Crow. Look down thread before opening your mouth. First time at this here rodeo?

        April 29, 2014 at 2:17 pm |
      • J. R.

        Goodness, some people sure have a short fuse, ain't that right, honey?

        April 30, 2014 at 12:07 am |
      • banasy©

        Good grief, J.R., you must be a Tea Partier with that lingo about lighting a fuse. You must be one of the war mongering thugs who live in Washington DC.

        April 30, 2014 at 2:41 pm |
  2. John Smith

    America is the root of all terror. America has invaded sixty countries since world war 2.
    In 1953 America overthrow Iran's democratic government Mohammad Mosaddegh and installed a brutal dictator Shah. America helped Shah of Iran to establish secret police and killed thousands of Iranian people.
    During Iran-Iraq war evil America supported Suddam Hossain and killed millions of Iranian people. In 1989, America, is the only country ever, shot down Iran's civilian air plane, killing 290 people.
    In 2003,America invaded Iraq and killed 1,000,000+ innocent Iraqi people and 4,000,000+ Iraqi people were displaced.
    Now America is a failed state with huge debt. Its debt will be 22 trillion by 2015.

    April 28, 2014 at 9:22 pm | Reply
    • Joseph McCarthy

      Good grief John Smith, such lingo. My mother certainly didn't raise me that way. Incidently, are you a member of the Tea Party? I thought so. There is no room for such misguided ideology in this forum. It's as simple as that!

      April 28, 2014 at 10:32 pm | Reply
      • banasy©

        He said nothing obscene. Get a grip, Monk. This gimmick has run it's course. Your pizza routine is only marginally less irritating.

        April 29, 2014 at 12:14 am |
    • Crow T.

      I'm sure readers would prefer actual facts to propaganda you spout. Let's start with a list of the sixty countries you mention. Until they, your comments are dismissed for lack of facts, let alone judgement.

      April 29, 2014 at 8:26 am | Reply
  3. Ferhat Balkan

    Eurozone is increasingly becoming undemocratic and unworkable. The Euro is a failed currency that Eurozone countries should accept the reality of and go back to national currencies that permitted faster growth in the past.

    April 28, 2014 at 10:02 pm | Reply
    • Joseph McCarthy

      Thank you, Ferhat. For one time, you and I agree on something. This idiotic European experiment needs to and as soon as possible! By the way, I see that some Tea Partying joker has been using my name above along with that of banasy in order to get his jokes in. Don't take his posts too seriously, please.

      April 29, 2014 at 11:03 am | Reply
      • banasy©

        Funny how you discount that the "fake" JM and you have the same avatar.

        April 29, 2014 at 2:19 pm |
  4. Matthew Slater

    When I look at the United States, I don't think about how badly things are going for Europe!
    This blog is really showcasing some fantastic misdirection and false logic recently

    April 29, 2014 at 6:05 am | Reply
  5. Dan

    Seems to me that all we ever do is either print more money or borrow more money. Bad course both ways.

    April 29, 2014 at 6:29 am | Reply
  6. The GOP Prayer

    The GOP Prayer/Mantra/Solution: Dear God...With your loving kindness, help us to turn all the Old, Sick, Poor, Non-white, Non-christian, Female, and Gay people into slaves. Then, with your guidance and compassion, we will whip them until they are Young, Healthy, Rich, White, Christian, Male, and Straight. Or until they are dead. God...Grant us the knowledge to then turn them into Soylent Green to feed the military during the next "unfunded/off-the-books" war. God...Give us the strength during our speeches to repeatedly yell........TAX CUTS FOR THE RICH!!!..........and........GET RID OF SS AND MEDICARE!!!
    In your name we prey (purposely misspelled, or is it?)........Amen

    April 29, 2014 at 9:06 am | Reply
  7. European Union

    Eurozone is doing very well. Comparing EU and USA shows that EU is the real winner. We in Europe have very large Corporations, that produce world's best quality products, and we have many more than America.

    i.e. Our Corps. are: Renault, France Telecom, Land Rover, Seat, Range Rover, BP, Shell, BT, Deutsche Telekom, Citroen, Peugeot, FIAT Group, BMW, Italia Telecom, Alcatel, Alstom, Siemens, Alfa Romeo, Philips, VOLVO Trucks, Scania, Ferrari, Porsche, Maserati, Societe General, ... and the list goes on and on.

    Americans only have a few Corps.: GM, Ford, Motorola, Texas Instruments – and they are not very big – not very successful.

    The financial and macro-economic measures do not provide a real picture.

    April 29, 2014 at 9:18 am | Reply
  8. rupert

    @ European Union. Maybe so. But we got something you don't got.
    We have bill gates and wal mart. So there.

    April 29, 2014 at 9:43 am | Reply
  9. rupert

    and who invented the light bulb or internet? Americans!
    Who invented the first cell phone? An american.
    Who invented white out? An american.
    Who invented the first car? An american
    Who invented the first plane? Two americans
    The list goes on and on.

    April 29, 2014 at 9:50 am | Reply
    • € - EURO

      The real problem is that you are a 'j a p a n e s e'. – Bill Gates is not worth an € cent. – EURO € is much stronger than $.

      April 29, 2014 at 1:34 pm | Reply
  10. chrissy

    Just riddled with trolls!

    April 29, 2014 at 12:11 pm | Reply
  11. chrissy

    As do all but a few posters here @ banasy lol. Stupid is as stupid does huh? Lol

    April 29, 2014 at 4:41 pm | Reply
  12. Joey Isotta-Fraschini©

    Young thinkers usually want to transform society. Frequently they do not realize that they really want to make society more favorable to their own skills and limitations.
    By "young thinkers," I also mean immature old boys and aging Flower Children.
    With maturity, the most gifted thinkers realize that many conservative values of their parents and grandparents were, although imperfect, rational and beneficial.
    Such values include patriotism.

    April 29, 2014 at 5:00 pm | Reply

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