Special Report Online: 6/13/12
Future of European economic crisis?
- Duration 26:37
- Date Jun 13, 2012
Future of European economic crisis?
Also in this playlist...
This transcript is automatically generated
Well -- another edition of special report on line I'm Bret -- if you haven't been here before welcome aboard this is a more relaxed version interaction with the panel asked some questions or comments.
Don't worry if it's not in the middle section were put and then this past weekend thousands of -- online right now joined here on the panel by.
Chuckling -- the Washington Post Jeff -- -- with the New York Times and as always Charles Krauthammer a let's start with.
Our lead story tonight chuck.
The situation Europe which -- the World Bank.
Is saying of a serious financial crisis could be on the rise.
It seems like after the rescue.
Over the weekend of the Spanish banks.
That Italy looks like it's hurting again and this contagion may still be -- well this.
Spanish thing bought -- about I think about four hours of time before the markets.
Turned their big -- down on it.
But it may have at least enabled Europe to limp through.
This coming weekend which is really important because Greece is gonna have its national elections and the side essentially whether they wanna.
-- the bullet and stay in Euro zone or drop out and I think that's really the crucial moment because -- Greece does.
Elect a government that essentially is committed to leaving the Euro at least not staying in on the -- -- of an offer.
And I think the crisis gets precipitated.
But the truth is this seems to be no end to this there's no decisive.
Plan in place and that's a big drag on the world economy including ours.
And it overshadows our whole campaign in the summer.
-- -- it seems like these are just mandates.
As it keeps going on and and how that affects us -- is really crucial the question is whether there's an arrow in the quiver.
For President Obama and it doesn't seem like there is I don't think there is.
Mean it's one of the many things that is outside of his control this is -- unique to him.
Lot of things are outside of the control of of incumbent president's and this is certainly a serious one.
I think he spends a lot of his time.
And trying to work through this -- knowledge is much so on Friday various news conference.
I think that -- the month of June has not been a very good for this administration very good for his reelection campaign and we still don't know how it's going to end with those great collections.
-- is watching it to very carefully but.
You know it's -- -- ironic.
Four years ago almost four years ago in July as as a candidate he traveled to Europe but through all the capitals I was with him along on that trip.
Covering it and seeing us hundreds of thousands of people.
Outside the Brandenburg Gate through the welcoming him -- -- flags was an interest in a setting.
Now to think -- to Europe candidate cause him huge domestic.
Grief here at home.
Is his interest and interest shows that you can't plan for a lot.
It's not in the reelection -- in the.
-- if I could say on that point it's also interest in how the European attitude toward him -- shifting he has been insistent that Germany.
Which is friendly -- from 2008 bailout these countries which the Germans are resistant it was a very angry at a op Ed in the New York Times today.
From the leading economists in -- essentially.
Demanding the President Obama just knock it off stop hectoring the Germans give up their money.
Show in effect that.
There's this kind of split and attitudes now.
There -- a sense by the way I JT money writes Greece will leave the Euro John in Texas says this will continue crisis from crisis.
Until the EU dissolves.
I think -- a long way from that but as far as Greece goes.
You know it's possible it's possible.
If you look at the ways -- first round of elections way.
There was an anti EU party did extremely -- left wing party charismatic young leader.
Who is projected probably give the most of all the parties probably short of a majority.
But could put together a coalition that was simply say we're not gonna adhere to the EU requirements and more out.
I think the real problem is.
What Obama tries to actors of the Germans to bail everybody out.
And the Germans look around -- look at it they're Germans have a retirement age which was raised to 67.
What does a new French president due upon arriving in office.
He lowers -- retirement age from 62 which was a real struggle for Sarkozy to get back to sixty.
So you're a German UN can -- -- when you see couldn't support a Frenchman and of course the Greeks and Spaniards in the others are even worse off.
I think we have a good point they have done they have held us all together with the essentially the -- deutschemark.
And it's a losing proposition the reason that the Merkel is resistant.
It's because she knows -- her own public opinion is.
I think in the end this cannot hold there's a sort of a you have to be right there have been a patchwork of a -- -- every month or so in the end it can't work and the simple larger reason it's.
For 65 years the Europeans have created entitlement state that they cannot afford.
And in the end it took this horrible recession and financial collapse to expose that fact and to make it unsustainable and they're looking at.
The end of this experiment to sort of half century experiment.
In a state that does everything from cradle to grave it can could be sustained and they don't want to let it go.
That's a story greased -- -- -- -- of the southern Europeans.
Says Merkel is the only saying European leader.
Amanda says jango is a good analogy for the Euro zone.
I guess -- question -- is if you're German and you look around in your economy is doing pretty well.
And unemployment is.
Fairly low and -- growth may slow you're still doing Google as a country.
As to charles' point hadn't had a.
Well not only that -- you feel justified.
Because you did sacrifice you did restructure economy.
The last decade.
As they say and do you showed you did your homework that's what until Merkel keeps repeating we did our homework now or anyone else has to.
Did the question though I would have for Germans with that attitude is whether this isn't a very short sighted attitude.
-- that the consequence of withholding.
Reasonable amount of relief for these other countries will be an economic disaster that will drag Germany down with it and I think that may be that they did the nature of the the essence of this dilemma is that.
Is right to be saying what it's saying and the people who want Germany -- of this money are right too I mean they're both right.
And they've both justified in their positions and that's why they're not -- haven't -- Germans failed them it's simply postpones a verdict -- history which is that this European entitlement state social democratic state.
Cannot be sustained I revert to Herb Stein.
The economist who once said when something cannot go on it won't.
And we are now at the.
I Jeff this -- Betsy writes why can't we learn from the mistakes in Europe.
One thing that does come up in the campaign often from the Romney camp in from around himself.
Is looking into the the crystal ball -- Europe and the problems for debts and deficit debt.
And that will likely continue as Europe's problems continue.
I think that's right and it's one of the it's 1 of the central reasons that the deficit and the debt.
Suddenly matters now in this election we've seen several recent presidential elections -- it really didn't matter much at all another snow.
Can question that it matters but camp and this president.
We've been -- on the show earlier.
Mean if it was his problem or inherited that's really a little bit beside the point at this point.
Is it's is responsibility to get out of -- now.
On the other -- governor Romney.
Sort of has a big.
It's always easy running from the outside but if he would happen to win in November and then the a serious matter begins that he will inherit the thoughts of putting the the -- ahead of the.
Carter and anyone can say on the engine and -- in your card and of course there's no evidence -- -- may be bad for Obama's prospects now be reelected but if Romney becomes president it's still going to be bad.
For him I mean this mess won't just go away.
That's one and two you know Europe is is part of everybody's narrative Romney has the deficit narrowed but the Democrats are playing -- for the austerity and they're blaming this all on the austerity is I think -- you movie interest he is durable via an issue that both sides trying to.
I I just sort but -- excuse me I was struck by half.
In the 2010 election and the debt and the deficit -- have but one of the larger issue the largest perhaps.
If you Mason in -- the Obama care expansion in government the size and scope of center.
That was the issue on the table and that's what destroyed the Democrats I've been struck by how of the debt and the deficit have receded.
From being the number one issue probably -- a result of the debt ceiling.
Debacle of obvious what everybody got hurt Democrats and Republicans look pretty bad.
And Republicans who could be running on this trying to do a repeat of 22 and -- particularly Obama I mean he emphasizes.
Jobs but I think -- is a lot less.
Important and at least his rhetoric then I think he could make it.
And because I think he ended the Republicans have a plan the Ryan plan -- perhaps SCSI doesn't want to.
Speak about his remedies which are -- the Ryan plan and have their own risks if you're Republican.
But it could be a larger issue perhaps -- will impose it on this election.
But I can see the Republicans and the Democrats shying away from it -- is I think it's -- it's a -- If you've got a Republican like -- Paul Ryan can make the case.
Someone -- -- on Bowles -- just taking the ball and running with why isn't Mitt Romney saying you know what will take.
Both sensible take Paul Ryan and -- -- run on some grand plan why isn't the president turning around and saying.
You -- want let's let's make this happen.
There's a lot of second guessing at this panel during that time from December 2010 all the way through state of the union that year those speeches -- wasn't a mention.
Well I think it's.
Pretty obvious that they're not running on at this time for the same reason they didn't support -- last -- that the base of each party has something to hate in this plan -- that's the perfect -- -- -- but did they are in these these candidates are.
All about base.
Consolidation and turn out it's not it doesn't seem like their strategies revolve around some sort of you know vital center strategy I don't know I think it.
There's a possibility that this it.
Electorate is ready for the big issue.
Is ready for the big grand solution like Washington stinks both sides are horrible -- -- out but.
Solve something and -- and if the question that is.
-- mean coming around it would be them.
The more likely.
Candidate to make that argument is he's running for outside of Washington but but -- -- he's also for the right makes you would be able -- but he also is.
Through a -- a little bit.
And because he is.
Republicans want to take over the senate.
-- hold their majority in the house he's he's -- a little bit to the rest of the Republican -- he's not like he's doing this alone.
Which I think of this would have been the only way perhaps a third party which is a long shot beyond longshot to.
I mean it won't happen now but I think that would have been something -- a a third party candidate so really -- pushed through without the constraints related.
People up there on the hill.
-- to -- says where -- ties he wants to get him for.
Father's Day this one is.
-- -- -- -- -- which I don't know offices but usually the Brooks Brothers.
OK next thousands of mourners -- get -- -- And Christie from San Augustine says Margaret Thatcher said the socialism works into you run out of other people's money.
Back to the big big -- point that I was well look there's some democratic thinkers are leading -- -- William Gholston.
Who was achieved for domestic advisor in the Clinton years he writes for the new republic.
And other places a good social scientist who's been arguing vociferously.
For several years for the Democrats -- to pick up to argue and to own a big issue like tax reform more entitlement reform.
And Obama is resisting -- I think it's a lot too as the opposition candidate to come out with a bold risky plan.
Especially when you've got an incumbent with a lousy economy would you make -- a referendum you can win.
So why would you run the risk and they've already run some risk by embracing the Ryan plan and the changes in Medicare.
But for the president who can't run on the past can't run on his record.
Can't run on the economic stewardship.
Can't run on his policies.
He barely speaks about Obama -- or the stimulus or cap and trade which were his three.
Priorities in this first term so what's he got -- left the future and he won't even speak about it tomorrow.
He's in a position where he's got a lot of people on the democratic side arguing.
Sees one of these issues but I think he simply.
Afraid to alienate some of the base would tax reform.
He'd rather run on the rich not paying their fair share because in tax reform you no longer can run against the bush cuts.
All of a sudden you have a whole new center rates.
With the -- with eliminating.
The deductions in the exemptions.
So we can't run on that demagogic argument about the bush.
Tax cuts helping the rich -- doesn't want to give it up he wants to run the easy race.
The fairness race the world the class war race and you have to give it up.
If he went for the big issue.
People are asking for thoughts on VP choice for -- Have they changed in recent weeks.
-- we get the sense I don't know if you do out on the trail Jeff that that there will be an announcement sooner than than.
Then right before the convention.
That that it may come weeks before in order to enable them to.
Raise money into different places to take media in two different places and maybe it happens earlier in the summer.
-- Sounds sort of unusual but it's actually not than -- at all in 2004 when John Kerry was running insisting president -- picked John Edwards on July 7 of that here.
I think it is possible and probably more likely there's certainly a discussion going on that it could be earlier but all of that is incumbent upon.
If this pick is ready or not mean this is do it you'd be crazy to go early.
Candidacy can have someone out there on on TV and raising money if the person was not to fully vetted.
And after everything I mean we have every reason to believe that the Romney campaign does pretty well along in -- process even before that.
-- primary was officially over there were sort of gathering things so.
This campaign was planning to be -- general election.
Campaign from the beginning so.
I would not be at all surprised if it was on the earlier side of July I don't think we have heard anymore surprises of course we usually don't.
-- it's -- surprise -- some sort of as a Sarah Palin did but I think we sort of threw -- You know the cast of characters out there from Rob Portman to Marco Rubio to -- governor Bobby Jindal to the governor.
Chris Christie Tim Pawlenty of Minnesota I would throw analysis while.
-- yeah I was gonna say Pawlenty is sort of you know.
Never seems completely go away and he gave -- was apparently very well received speech in North Carolina.
A few days ago.
He would be -- a logical bit safe.
In this race on a more -- -- pick would be somebody like Bobby Jindal.
I agree that Jeff I don't think there's going to be any wild unexpected surprise out of here.
On and that we've pretty much seen to -- cast characters are sort of obvious.
You still think -- is Portman I think just.
This is sort of you know aliens look it -- Romney's character he's extremely cautious.
And I'm not sure he would go for anything adventuresome I could be -- -- -- was a guy with wood with whom you.
You double down on governments which could be a good idea when you any against a candidate who was once charismatic and -- sort of imploded.
And people could be tired of charisma and also Ohio of course is so important.
But I I would imagine given the thoroughness that's one word I've associated withdrawn their thoroughness of Romney in his.
His team if they are now questioning people who went to kindergarten.
-- every one of these candidates has to -- to find out.
How many cranks they pulled off increasingly are cut anyone's hair exact I don't -- anything any chances here.
And whoever's going to -- -- clean is clean I mean.
Romney himself -- -- somebody said he you know he's so clean you just have skeletons in the closet he doesn't have a closet.
So he's looking for somebody who doesn't have a -- may he may find.
Yeah I still think.
Paul Ryan's out of the question everyone says.
You know you're -- -- absorb this plan anyway and who why not take the guy that can talk about it the best and I think.
Mitch Daniels is not out of the equation either but he says he has so there's going to be a vice presidential debate right when you -- lost.
When you -- to see you round of Paul Ryan and Biden and vice president tournament.
I paid for ringside -- for that all of the names we've mentioned.
Are people who are probably going to be pretty capable.
Debaters -- Nudity and the beauty any hints about these -- scotus decision.
And when I could -- well the end of the Supreme Court term is -- 25.
We do not think it's going to come out on Monday the eighteenth so we're putting some money on the 25 although some Supreme Court.
Insiders think that the term could be extended back a couple of days.
It is they frequently doing with his decision and a load of cases they have fifteen.
That they have and two decide before the end of the term.
Institution in this that does not leak.
When you think of all the clerics & Associates.
I I can't remember anything of any importance.
Ever being released in advance and in this is we -- to have these people handle our stocks that.
And the drone war -- the Dred Scott decision leaked.
Early in 1857.
Of them might have been a -- because of the Internet all the new technology.
Jeff is there -- sense how this is gonna play I mean obviously.
If it goes down the mandate goes down let's say -- for.
There will be some who say listen this is president Obama's number one issue and it failed it went down then -- the other side that says.
You don't want to this is a political decision and it's not gonna affect -- mean.
Is there a sense of how really will play on the left on the campaign trail.
I think it's unknown but I think we know couple things one.
Think most of the opposition to the health care -- is already.
-- debate -- So it could do a couple things one they could fire up to democratic base and could really a put.
He can erase the alarms or so on the fly so for whatever the metaphor joining.
Some use that this president is in trouble and needs help.
And I think that.
He can also on the other side.
Sort of put more burden on governor Romney to explain his health care position -- is doing a little bit more now.
-- -- highlight his his time as governor when he at a very similar.
Law in Massachusetts so it's impossible to argue.
It's going to be.
Great for Romney because of XY -- is going to be a mixed bag at the end of today it gives the Obama.
Side -- -- to their base probably argue -- Josh -- the Supreme Court is important this is what presidents matter.
I'm not sure that see.
At the end of the day but every so that we have several -- the day here yeah I think it's a wash probably politically.
What regardless enough.
And one thing that's happened because -- oral argument went the way that it did it got so much publicity.
There's a certain.
Calm there won't be that much of a surprise.
To the impasse.
Overturning this law if they do we somewhat muted I think because people are basically expecting that.
I don't know but it but just the fact that he spent.
A year and a half and all that political capital and all that time pushing this 2700 page bill.
When it even people in his own party say he could have been focusing on the economy insider saying.
You know maybe we shouldn't have done this.
That seems like a big deal I don't know.
I'm with you on this I think it's going to be a total humiliation.
I think it'd take -- -- if it goes down and be truly humiliating.
A year and a half as you say the whole effort to country was not clamoring for a -- 800 bill page.
Reform and won six of the US economy -- they were clamoring for jobs.
For something that would Warrick and stimulating the economy are reviving the economy.
They were they they weren't they were not asking for this and he decided.
To spend the sense -- the first half -- the first -- on this if it's decided by the court that it isn't even constitutional.
People who say what was he doing.
And is he a former supposedly a former professor of constitutional law yes I can see some of the base being -- and -- we.
We wanted to health care for a hundred years we got a fair and square another court overturns it.
Managers can have an effect local Roe vs.
Wade had a huge effect.
In galvanizing the right but it took -- -- until it actually.
Had a political -- and electing Reagan it doesn't happen overnight I mean it created the religious right.
-- is gonna have any effect in that sense between now and November.
It will have an effective just embarrassing the administration.
Have especially after those -- in June from held for them.
He sure ain't gonna look good well what's this could be the worst June.
Like I was in a long time that goes down and it raises questions about his ability to govern because Democrats were in control entirely.
Now let's -- can blame about it.
On anyone but again -- -- very few people who were undecided.
About this issue I think it could -- -- both sides that there are.
With the people who think.
That this president is illegitimate he he can't govern are going to think that even more but I don't think it's going to sway that the other -- and so many more miles I was.
Just gonna say the same thing I'm I agree with Charles it was good look bad terrible for him but how many votes that will actually moves it is another question.
I've always thought actually.
That there's a hazard for Republicans and having -- struck back -- by the by the court because.
Okay now you you know that takes a little bit of the urgency out of the Republican campaign to get rid of Obama and the democratic senate and.
Fall but let me just.
Pushed back 12 you say that the recession overall.
He's really not president Obama's fault.
The Federal Reserve report that people lost 40% of their income.
Goes back to 2007 so not Obama's fault and then if this this thing gets shot down 54 on the mandate.
People were already decided how they felt about it not Obama's fault.
Isn't there a sense if people feel bad about the economy that somebody.
Has to be at -- Well when they go to the ballot box well let's decision troubles and I'm just saying from that point of view -- well I think what is it about the recession was the deficit.
Is caused by the recession.
Mostly and that the recession is not Obama's fault that's true but I think but I also said -- a little later on was that doesn't.
You don't matter anymore -- three years have gone by and now you know it's on his watch whatever they're actually right.
The Indians are feeling the political climate in this country is bad and getting worse he happens to be an office while that's happening he's gonna pay the price -- -- there's no.
Questions that it does raise a question I think that your point.
People are gonna look around and say.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- Right deficit he can't do anything about it wasn't his.
I recession he can do anything about it wasn't his.
Do you have fun health care tossed out well -- Supreme Court.
Well he's been our office for three and a half years we gave them the vote we gave and the office we gave them control of the whole congress and he's now I -- like he was a bystander -- he was asleep at three champions wakes up and says elect me because I'll kill your problems.
What he's been a bystander for this whole time so I think it damages -- really deeply.
Tammy from an I don't know Wisconsin says Charles -- is a very very good writer and since he's been on your show I've been reading everything that he is written thank you.
I don't know what I did to deserve that.
How big -- -- friendly and my cousin yeah cousin Jimmy thank you.
Thank -- very much.
For sticking around for the online show thanks for watching special report on line -- -- -- of course Fox News Channel every weekday.
6 PM -- we just want to show you the graphic right there it's that's what it looks like.
-- -- -- -- --