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April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review May 12, 2010 / 28 Iyar 5770

Greek Debt Crisis Will Worsen: The Center Won't Hold

By Dick Morris & Eileen Mc Gann




http://www.JewishWorldReview.com | When the European Union voted to put up a $1 trillion fund to bail out indebted countries in the Eurozone, it implicitly rejected the alternative, which was to purchase the Greek debt outright, making it an obligation of the EU as a whole and no longer just a Greek affair.

By opting for the bailout, the European Union has taken a middle course between full debt assumption and abandonment that won't work. The markets will keep pressing until the EU throws in the towel and buys up all the outstanding Greek debt. Shortly thereafter, it will have to do the same thing for Portugal and perhaps for Italy and Spain.

Greece owes $400 billion. Portugal owes $175 billion. And, over the horizon lies Italy, which owes $2 trillion, and Spain is on the hook for $819 billion. Against these numbers, a $1 trillion fund doesn't inspire a whole lot of confidence.

Spain has kept its debt level low, 60 percent of gross domestic product, thanks to the fiscal responsibility of the regime of President Aznar. But Italy has had no such prudence and now owes 115 percent of its GDP in debt, a percentage only slightly less than in Greece.

This run on the Club Med countries will continue, and the $1 trillion fund will not be enough to stop it.

The key question is how will Germany respond? Ever since the 1920s and 1930s, Germans have had a national consensus that unemployment is tolerable but that inflation is not. Having seen Adolf Hitler take power in the wake of the inflation of the Weimar Republic, Berlin does not look kindly on inflation. But an aggressive German effort to save Greece — and certainly one to save Italy — would run afoul of this long-held belief and would undermine confidence in Germany's ability to pay its debts.

Berlin is caught between a rock and a hard place. If it props up Greece, it undermines confidence in German solvency. If it doesn't, it undermines it in the Euro. Either path will lead to inflation.

Already, Germany's debt to GDP ratio is 77 percent (not quite Italy's 115 percent or Greece's 125 percent, but getting up there). Last week, the cost of insuring $10 million of German government debt against default for five years rose to $47,000, as opposed to only $35,000 at the start of April. These insecurities are certain to rise the closer Germany gets to assuming Greece's debt.

But if a Eurozone nation is allowed to default, inflation will certainly come as faith in the Euro falls.

The meaning for the United States, immediately, is that the export-driven recovery, stoked by improvements in Europe, is likely to fade and the dollar will strengthen, making U.S. exports less competitive.

But the longer-term meaning is much more serious. Investors have gone from being nervous about small banks (the savings-and-loan crisis of the '80s) to being nervous about big banks to being nervous about non-bank financial institutions to being nervous about small countries.

The next steps are obvious. The worry will spread to medium-sized countries like Italy and Britain, and then to the biggest of all: the United States.

Obama has left us vulnerable to these concerns with his huge and unnecessary budget deficit. With our debt now exceeding 80 percent of our GDP (it was 60 percent when Obama took office), we are hostage to speculators and nervous investors. In 2011, we may well experience the same kind of international jitters that now bedevil Greece and find our hand forced by an international consensus, just as Athens' has been.

When Republicans stand against tax increases in 2011 and Democrats block spending cuts, the positions of both political parties may be irrelevant. Obama has so compromised our financial independence that the bond market may make the decision for us and jam both down our throats. Today, Athens. Tomorrow, Washington.

The Obama deficit is a gift that keeps on giving!

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