Here is a graph that compares the GDP of Greece to that of France and Germany. France and Germany cannot bail out Greece without severely damaging their own economies and future possibilities for growth.
Here is the same graph, with Italy added. Italy is desperate financial straights, and as you can see, a much larger economy than Greece. No bailout of Italy is possible from within Europe. Italy’s GDP is about $2T and Germany’s is about $3.5T. If Greece does not sink the Euro, Italy certainly will.
Here is the same graph as above with the United States added and scaled accordingly. Our GDP of $15T dwarfs any single European economy. Germany’s entire GDP is about the size of our Federal Budget. Our National Debt is also $15T right now and growing.
Europe is done, and so are we. Got it?
Yesterday: Senate Majority Leader Reid Demands The House Stay In Session Over The Weekend. Senate Majority Leader Harry Reid, D-Nev., Thursday morning slammed House Republicans for their decision to take “the weekend off,” a shot that comes as part of a mounting Democratic effort to turn up the heat on lower-chamber Republicans to compromise on a debt-ceiling deal. … Reid said in a floor speech it is “untoward, and that’s the kindest word I can say, to have the House of Representatives out this weekend.” Reid said their absence provides a “very bad picture for our country.” (National Journal, 7/21/11)
Today: Reid Cancels Weekend Senate Session. Sen Reid tell Senate nothing for it to do tomorrow or Sunday and therefore it will not have to be in session this weekend. (@MarkKnoller, 7/22/11)
Hat Tip to Brian Patrick in Maj Leader Cantor’s Office for these. Priceless
According to Chuck Schumer the Obama administration is considering ignoring the Debt Limit. It apparently believes that the 4th Section of 14th Amendment ratified in 1865 means something it does not.
It states in part:
“The validity of the public debt of the United States, authorized by law, including debts for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.”
Apparently the Obama Administration thinks that this means that “full faith and credit of the United States” can never be questioned and that Treasury Secretary Timothy Geithner can simply authorize the printing of more money ad infinitum.
Apparently, they missed or more likely just chose to ignore the clause which states that the debt must be “authorized by law.” If the debt which the Treasury issues, is not authorized by law, it will certainly be questioned, whether Obama likes it or not.
I feel certain Congress will have something to say about this course of action. Failure to stand up for their Constitutional obligation to authorize the public debt, means that the People will certainly make their voice heard on the subject.
Here is a link to the Washington Examiner Article on the subject: Schumer confirms White House considering ignoring debt limit | Conn Carroll | Beltway Confidential | Washington Examiner.