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The Wall Street Journal’s Dan Henninger argues a dual Euro could help the group’s struggling economies.
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Very much and it.
There is a huge economic crisis in Europe obviously we talk about it every single day and so this President Obama.
He blames Europe for many of Al current problems here.
Data -- in Jeff asks in his column today wouldn't Harry Truman the blame Paris Dan joins us now.
That's a good question that's the sub headline have you pieces and it would Harry Truman blame Paris -- he -- his reelection problems on -- Paris should President Obama blame Europe for his reelection problems answer your question.
But no he should not.
And he should do more than his Treasury Secretary Tim Geithner did which is to simply waving their direction and -- their futures and their hands.
I mean clearly anybody who's watched the stock market the past.
Eighteen months realizes that it's incredible volatility has been tied to what's going on in Europe and at the Euro collapses this one.
This will take down.
The Euro zone's economies and there's no way that the United States with the rest of the world can escape that problem we're not bystanders to this you would want the federal risen to help in some kind of -- bail -- which -- no I think -- that not in the least though I think probably we are heading towards a situation in which they will try to inflate their way out of this.
Two without health.
I think the European Central Bank to do it on its own -- it had to I don't think -- -- -- -- being that the Federal Reserve has already flooded the markets with liquidity.
To raise the US economy over the past two years and that hasn't done much of anything so I don't think -- any.
Point India fed printing more money do you think it would look if the European Central Bank did print three trillion euros for example would have we will -- short -- them.
Wouldn't fix the whole problem.
And and inflation across the Euro -- I think would be a bad idea that the notion is that just a little bit of inflation will get them out of this the Germans have had some pretty.
That experiences with inflation and how you control the inflationary.
-- once they get out of the news.
-- is is as a good question.
I'd like to propose to you Stewart an alternative that's been suggested people like Allan Meltzer of Carnegie Mellon.
Which will be to break the Euro into two parts a weak Euro zone for the for southern countries and a strong Euro zone for the north which would effectively.
Devalue the Euro in the south make them more competitive help them try to grow out of this problem.
And the only way to -- -- membership in the stronger in the -- is if they agreed to play by the pre existing fiscal rules could you get to a situation like that a dual Euro without -- -- chaos that's the sort of thing that the United States could engage and as we did in during the Bretton Woods for instance meetings after world worked to where you get everybody to sit in the room.
With the United States nothing can happen without American leadership in the global economy still fortunately.
And I think that's the sort of conversation have to start taking place with the United States -- towards a goal something like that.
Thinks President Obama could survive if one American dollar will help to bail out the Europeans that would be -- a huge political price to type deal wouldn't it.
I'm not sure they have to spend dollars but they have to spend some intellectual and political capital to help the Europeans -- and make them understand that we are part of the solution you would you agree that crunch time is now.
Crunch time is now you know we've been talking about Europe being at the edge of the cliff they're not at the edge of the cliff there over there hanging -- -- the branches with the dirt flying off -- I miss the fingernails on the weekend and a big week coming up business amid the selection Sunday announces it this is it.
-- -- always a pleasure thank you very much right time.
