Top European finance leader blames US for crisis
WSJ's Steve Moore weighs in
- Duration 4:56
- Date Jun 19, 2012
WSJ's Steve Moore weighs in
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This transcript is automatically generated
From back to the economy now here is facing mounting pressure to solve its debt crisis.
The US of course is concerned that the debt crisis will spread here.
But one European finance leader says the US is actually to blame not just the United States but North America is to blame for what's happening overseas take a listen.
Was looking originated in Europe.
Since you mentioned -- America these crises wasn't reject it -- America.
And many of our financial sector what company -- that's by.
How can I put its unorthodox.
Practice from some sectors of the -- Financial market frankly I'm not come yet to receive lessons in terms of democracy on them -- -- -- economy.
Seed -- -- -- -- credit for the Wall Street Journal Steve that is the European Commission president.
Jose Manuel brought so yeah what do you think quite an -- save.
Meant for -- somebody who leads the European Union when they're in such demise and you've got these countries that need bailout after bailout.
You know it is true that the US economy kind of led the world into recession we were the first major country to compete to be in recession but you know this John.
Europe's confidence problems have been around for thirty or forty years they're paying a high price for welfare state.
And entitlement programs that have grown so enormous that they just apple is simply can't pay for them and nobody wants to lend them money any more so to blame the United States for Europe's problems is I think got.
A really outlandish.
He has seen every bit of broader question no Bowden -- the game like follow the leader but who is the leader in the global economy wrong act to follow who is that.
Country -- that person.
That others are -- Online -- it's a great but it's a great point shadow and this is the whole problem what the world economy right now there is no leadership anywhere in the world I'm aware of the Margaret -- -- -- Ronald Reagan's.
Of the past that helped us lead -- out of these kind of global crises.
You know the only one who really looks like a leader right now maybe Merkel in Germany but you know we we hardly come lecture these comp countries about lowering their -- -- wanted him running one point two trillion dollars of -- ourselves up it is a big problem there is no leadership on the global stage.
Let it seems like those that are taking the lead as you mention you mission Merkel but also the and these organizations that are not attached to anyone government.
I like the -- -- -- -- I -- math is is it there's proposals of a bail out through the -- -- to a different European nations and the detail that I wanna get too far into it but basically -- -- -- -- -- criticizing North America -- It also asking for that money through the IMF in the United States has said -- exactly we're not gonna give any more money BI and -- but some suggest that could be a mistake on our part Steve.
Now that if we don't do it it's it's gonna get worse for us.
-- look I've been an opponent of the I am out for years and I think there would be nothing more unpopular with American voters right now.
And to see their taxpayer dollars go to organization like the IMAP.
So it can bail -- Europe and we got huge systemic problems here in the United States.
If Europe is gonna get out of this crisis -- has to reform itself.
And one of the things that was interesting about the comments by the that leader of the EU today as he basically said we're proud of our economic system.
We don't really want to change -- well.
That was hardly music to my ears I mean they have to change these programs.
Or Europe -- will never be the same again they can't continue.
Down the road.
About having a declining number of workers and an increasing number of people on the dole or on retirement or under these government programs that math simply doesn't add up John and they've got to reform themselves.
That the commissioner -- -- isn't my advice we just dying Q there is advice in the why doesn't want I was generally doesn't want lyzard advice they just want money.
Apparently -- -- that might be a good way to summon up that there is advice coming through a variety of different editorials today.
One of them from Larry Summers in ways that -- president's top economic advisor -- time.
And he basically says listen the outside those on the outside like those in North America -- -- guys.
Need to persuade the European that the rules are changing wend its stakes rise and basically he suggested everybody needs that.
Take a step back and forgive some of these desperate forgive -- the interest rates attached to send these -- For some these countries -- is that potentially -- way out.
Boy is that a stunning statement actually what that's so roundabout way of saying that what should happen is that these European countries and essentially repudiate their debt and not repay the people -- -- the money.
Now if you do that Jana nobody is ever gonna -- money -- The Europeans again that I mean I just don't see how that's a solution to the problem they've got to get their spending down they've got their economy they got to get those economies growing and it's simply say to the creditors you know what.
We're not gonna pay back what we promised you.
That is your real dangerous idea I think there are able -- advice to our south it's yeah I think -- so we don't do that the United States -- -- -- dollar -- it's Americans on the -- got lots to cover as always thank you --