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Jewish World Review July 10, 2012/ 20 Tamuz, 5772 Make the Euro A Joking Matter By Paul Johnson http://www.JewishWorldReview.com | Why is the global economy finding it so difficult to emerge from the crisis of 2008? Increasingly the evidence points to that huge bureaucratic monstrosity, the European Union, as the source of the trouble. During the past two years EU leaders have held numerous summit meetings, including tête-a-tête encounters between Germany’s chancellor, Angela Merkel, and France’s former president, Nicolas Sarkozy. All were hailed as make-or-break opportunities to “save” the euro. All failed. Meanwhile, most of Europe is sinking deeper into stagnation or industrial decline and experiencing rising unemployment and psychological despair. The EU’s failure is affecting the rest of the world. China’s exports are suffering and its economy faltering because of the drop in demand from the EU, its biggest single market. The U.S., which has been enjoying a natural recovery, is feeling a knock-on effect from EU weakness. Britain is also complaining. There are two chief reasons for the euro zone mess. A strategic error was made in creating the euro as a common currency without aligning its members’ financial and fiscal policies. Without a submergence of sovereignty some members, especially the weaker and more extravagant ones to the south, were bound to exploit their membership through reckless borrowing. Greece, Portugal and Ireland were flagrant and obvious examples. Spain ­recently emerged as an even more extravagant case. And under its socialist ideologue president, François Hollande, France will soon be joining Spain. The only remedy for this folly is strong leadership by those in charge of the EU. In practice, this means Germany. But Chancellor Merkel has been brought up to believe that the two world wars were essentially “German wars,” caused by Germany’s attempt to boss Europe around. So leadership is the one thing Germany can’t afford to exercise. The stronger it is in relation to the rest of the euro zone, the more Merkel must refrain from telling the others what to do—a self-induced moral paralysis. Hence, whatever now happens on the European continent will not be planned. The likelihood is that the euro zone’s weaker members will be forced out one by one. This ragged and unpredictable process will be accompanied by market shocks, bank failures and rising unemployment in all countries. This is a formula for economic disaster, to be followed by the rise of political extremism, especially on the right. With Germany—Europe’s strongest economy—flatly refusing to lead there’s not much hope that Britain, strangled by a coalition, will satisfy the deficiency. In order to stay in office David Cam­eron has to keep his Liberal Democrat allies content, and they are fanatical “Europeans,” who refuse to see that the EU cannot work because it is too bureaucratic and doctrinaire. As long as America continues to have a weak and indecisive Administration, we can expect no resolute lead from Washington, either. Mitt Romney has yet to establish himself as a world figure, but he has an opportunity this summer and autumn to make the recovering U.S. economy—by far the world’s largest—pull its weight again. The U.S. has the wonderful ability to speedily transform itself from a state of intense pessimism to one of vigorous optimism. I remember the dark days of the 1970s, when the enforced resignation of Richard Nixon and the stagnant years of Gerald Ford’s and Jimmy Carter’s presidencies combined to drive America’s admirers to near despair. But then came the advent of Ronald Reagan. Within weeks of Reagan’s entering the White House America’s pulse was racing, there was a new sense of purpose and the Administration began acquiring the decisiveness and authority that became its hallmarks. The recovery of America’s characteristic self-confidence was a political miracle. If Mitt Romney is elected the same thing could again happen. And it needs to happen for the world economy to get back on track to expansion. Then old Mother Merkel can tag happily along in Romney’s wake, and the fate of the euro will descend to its natural level: an expensive joke. Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here. BUY THE BOOK Click HERE to purchase it at a discount. (Sales help fund JWR.). Eminent British historian and author Paul Johnson's latest book is "American Presidents Eminent Lives Boxed Set: George Washington, Thomas Jefferson, Ulysses S. Grant". Comment by clicking here. Previously: 04/17/12: Silent witness 03/13/12: To pick an American President 12/13/11: American Culture Rides High 10/20/11: Who Can Lead Us To Safety? 08/23/11: Wanted: Global Role Models 07/05/11: Debt: A Moral Issue 06/08/11: The Moral Logic of Intervention 03/10/11: China's Secret Weakness: Is history repeating itself? 02/10/11: Assessing America's Foes 11/29/10: Wanted: Someone to Trust 10/19/10: Are Universities Worth It? 06/01/10: The English Language and Freedom 04/20/10: Listening and Telling the Truth 02/28/10: There Is No Keynesian Miracle 10/20/09: A Job Waiting for a Woman? 07/21/09: Obama Has to Be World Sheriff 03/24/09: Short works of genius that cheer up the writing profession 02/11/09: What would Darwin do? 01/27/09: Are you sophisticated? Here's how to find out 01/06/09: What did they talk about in the Ice Age? The weather, of course 09/09/08: Time, and our appalling ignorance of it 08/19/08: Eye-stopping glimpses of an exotic and forbidden world 06/30/08: How to fill a lecture hall, and how to empty it 06/23/08: Americans should count their blessings 05/20/08: Pajamas for Presidents 05/13/08: Literary woodlice boring needless holes in biographical bedposts 04/01/08: When markets come crashing down, send for the man with the big red nose 04/01/08: Quality for dinner. Pass the Fairy Liquid, Old Boy 03/25/08: In search of an American President with brains and guts 03/18/08: Technological warfare against mice won't work. Try cats 03/11/08: What is a genius? We use the word frequently but surely, to guard its meaning, we should bestow it seldom 03/03/08: Fiction as a crutch to get one through life 02/26/08: Impatience + Greed = Trouble 02/13/08: Shakespeare, Neo-Platonism and Princess Diana 02/07/08: Where Industry Has Failed Us 12/19/07: People who put their trust in human power delude themselves 12/12/07: What is aggression? 12/04/07: Pursuing success is not enough 11/07/07: Are famous writers accident-prone? 10/31/07: Courage needed to disarm Iran 09/20/07: Who Will Say ‘I Promise to Lay Off’? 07/24/07: Greed is safer than power-seeking 04/02/07: Benefactors must be hardheaded 03/07/07: American idealism and realpolitik 11/28/06: Space: Our ticket to survival 10/24/06: Envy is bad economics 10/11/06: Better to Borrow or Lend? Rethinking conventional wisdom 08/22/06: Don't practice legal terrorism 08/08/06: A summer rhapsody for a pedal-bike 08/03/06: Why is there no workable philosophy of music? 07/11/06: Historically speaking, energy crisis is America's opportunity 07/06/06: The misleading dimensions of persons and lives 06/06/06: First editions are not gold 05/23/06: A downright ugly man need never despair of attracting women, even pretty ones 04/25/06: Was Washington right about political parties? 04/12/06: Let's Have More Babies! 04/05/06: For the love of trains 03/29/06: Lincoln and the Compensation Culture 03/22/06: Bottle-beauties and the globalised blond beast 03/15/06: Europe's utopian hangover 03/08/06: Kindly write on only one side of the paper 02/28/06: Creators versus critics 02/21/06: The Rhino Principle © 2009, Paul Johnson

Columnists Mitch Albom Jay Ambrose Bruce Bialosky Lori Borgman Ben Carson Mona Charen Richard Z. Chesnoff Alicia Colon Ann Coulter Greg Crosby Larry Elder Suzanne Fields Christine Flowers Bernie Goldberg Jonah Goldberg Paul Greenberg Argus Hamilton Victor Davis Hanson Froma Harrop Ron Hart Nat Hentoff A. Barton Hinkle Laura Hollis Jeff Jacoby Jack Kelly Ch. Krauthammer David Limbaugh Rich Lowry Michelle Malkin Ann McFeatters Dana Milbank Jeanne Moos Dick Morris Jim Mullen Judge A. Napolitano Kathleen Parker Star Parker Dennis Prager Wesley Pruden Tom Purcell Sharon Randall Michael Reagan Robert Robb Dave Ross Debra J. Saunders Martin Schram Robert Samuelson David Shribman Roger Simon Lenore Skenazy Michael Smerconish Thomas Sowell Mark Steyn John Stossel Cal Thomas Dan Thomasson Bob Tyrrell Dave Weinbaum George Will Walter Williams Byron York Cathy Young Mort Zuckerman Toons Eric Allie Robert Arial Baloo Pat Bagley Nate Beeler Lisa Benson Chip Bok Dry Bones John Branch Daryl Cagle Cameron Cardow Patrick Chappatte John Cole Paul Combs J. D. Crowe John Darkow Bill Day Matt Davies John Deering Bob Englehart Brian Duffy Everything's Relative Randall Enos Mallard Fillmore David Fitzsimmons Glenn Foden Jake Fuller Bob Gorrel Walt Handelsman Joe Heller David Hitch Jerry Holbert David Horsey Taylor Jones Lee Judge Steve Kelley Mike Keefe Jeff Koterba Dick Locher Chan Lowe Jimmy Margulies RJ Matson Gary McCoy Rick McKee Paresh Nath Jack Ohman Jeff Parker Milt Priggee Michael Ramirez Rob Rogers Steve Sack Bill Schorr Drew Sheneman Kevin Siers David Ray Skinner Jeff Stahler Scott Stantis Danna Summers Gary Varvel Kirk Walters Christopher Weyant Larry Wright Dan Wasserman Adam Zyglis Lifestyles Tech Q&A Ask Doctor K Richard Lederer Bookmark These Bruce Williams