Germany Gives to Greece

The lead article in today’s New York Times is titled, “Germany, Forced to Buoy Greece, Rues Euro Shift.” It describes the weak financial state of Greece and its effect on the Euro, the common currency throughout the Continent. Greece, perhaps in danger of default, is causing the Euro currency to sink in world markets, and the situation is also threatening other relatively weak European states such as Portugal and Spain.

In order to halt the downward spiral, it seems that Germany, the strongest country using the Euro, will have to provide some assistance, even if it is just a loan guarantee. This is awkward for the German government because it insisted on adopting the Euro even though the German people were against it.

In my opinion, this article is a warning sign about the dangers of foreign economic entanglements, and the need for the United States to chart a separate course when structuring its economy. Today, it is Germany bailing out Greece; when might it be China bailing out us, if they’re not doing so already?

Anyway, sometimes there is no alternative to prevent a worldwide financial crisis, or, this case, a European one. Germany will make a responsible decision even if it is unpleasant.