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Can EU Continue to Exist on Its Own?

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  • Description

    Former Reagan Economic Advisor Art Laffer on the efforts to help the EU economies.

  • Duration 2:35
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This transcript is automatically generated

That is a terrific lead in -- former -- economic advisor ought to -- -- who is on the phone with us now from national.

A -- do you approve of this money printing operation to bail -- and rescue the Europeans.

And not really I mean honestly -- it it's another emergency measures that they've done we've been doing this now for three straight years.

You can't have fifty years worth of temporary emergency measures.

And hope to have this thing really succeed.

But what I temporary fix though -- I mean everybody knows it is a temporary fix is just buying a little time -- -- the jumbos will pony up money of the -- What it but it is also possible that that temporary fix would turn things around but we aren't seeing any turnaround in the economy.

I mean we aren't seeing budget deficit come down we are seeing the -- -- being paid back we -- these peace and harmony Greece's things operate well.

So really what we're doing is buying -- without -- the release central problem which is federal budget deficits both here and in Europe.

Are we gonna get inflation because -- throwing the money around well that's.

What they're all worried about as well as you know some of the yield on the southern European debt have gotten very high eight to quote on quote unsustainable level.

And so -- that's coming in to hold interest rates artificially low so that they can afford to have those debt issues in this doesn't last forever -- Does not stop the Europeans from sliding from recession and into may be depression because if if it did.

If that's -- the nature of this fed money printing operation that -- -- -- awesome good effects here in America.

Well it's surely will slow it down for the time being that's for sure.

But it's slight building an artificial sort of -- to build up the waters still building up behind that camp and now -- -- -- could be a lot larger.

If I didn't if we haven't done this was that you wrote close to crash and flat out.

Well I don't know how what you mean by close but -- the euro's not doing well I -- here you've got a problem is the US's that was that is holding in the world on his shoulders.

But qwest is what does that -- standing.

And that's the real problem here is what I think is happening Stewart is a lot of the problems are not being transferred to the US.

And what we're far more fiscally -- -- -- found in Europe that's very true.

We are not fiscally into the usually found on our own right sufficiently to be able to withstand this new load.

And sooner or later the US is gonna have the problem and there's no one to bail -- That is true.

A write off last book former Reagan economic advisor the man who -- -- -- -- pointed out supply side economics I do believe.

-- us always a pleasure thanks for joining us thank you very much -- got it.

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