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Forbes opinion editor John Tamny on whether the U.S. is to blame for the European crisis.
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Is America to blame for Europe's crisis European Commission president Jose Manuel Barroso.
Thanks so.
These crises must not originated in Europe.
Since you mentioned must America these -- this wasn't rejected us America.
And many of our financial sector want to come to alienate that by.
How can I put it I don't -- Practice.
From some sectors of the financial market.
John -- me as Steve Forbes opinion editor that joins us now in studio that was quite a -- The right.
He's got a point although it's it's I probably would disagree -- them on what that is if you look over the last 1011 years.
The US severely devalued the dollar and when we devalue its always a global event.
I think this greatly infected Europe what happens when -- devalue -- currency.
Investment and productive ideas declines and you have these revenue crises for governments so I think you can.
The draw the crisis you can say its origins are in the US but I don't think this person understands way.
Acts like that we shoved all this of debt down their throats that this country because of our financial system -- all these these countries.
To borrow money reckless laid -- and all these banks over there to make bad loans and -- he's won't home that.
Oh he certainly wrong on that the -- let's be honest about what this is all about this is not about Greece this is not about Spain it's not about Italy.
It's about banks that have exposure to them.
A Greece's and in been in default at least half of its modern existence.
I would know international story to the reason there's a story now is there's this -- forgotten feared that if the bank fails to beat the global com you'll -- That's wrong that is capitalism is about -- That is a big question because wherever -- all this originated and -- did it -- -- we dealt with it for better or worse here with TARP and everything else in 2008 and the it's at its.
Apex -- says worse right now in Europe -- do you do you think it'll end with more more bailouts they started and Spain are we headed down the road of more more banking bailouts in Europe is that the end of it.
I think so and I think that's the problem is getting worse and worse let's remember Greece's economy is what the size of Dallas Fort Worth.
Why if we have let Greece default way back when when a few banks -- wonder we're not talking about Italy and Spain today.
When you mess -- nature when you when you bail out Greece that signal to other governments that have a much bigger impact on banks in the economy.
That it no reason to get -- -- -- shorter dated debt said OK just keep doing measure -- and as a result.
Because we -- let Greece fail early we are now looking much bigger problems.
-- looking at Mariah says fiery finger pointing I see something bigger than that because anytime you start.
Blaming.
-- country or individuals in the country there's a motive there and it I get a whiff of think you -- the problem and the root of that you're going to be the root.
Of the solution for us and that means money coming to these nations in some way shape or form from the USG OI senator -- Slowly right I think that that that's clearly what he's looking for is let's make this -- US problems of the US.
Has to come -- and save a few people what we have to what Americans have to wake up to and Europeans -- to.
Is when you bailout everyone you bail out no one someone's got to pay for this summit at some point -- all going to be insolvent if we keep -- -- would be the most realistic thing to do now though that is it it because we have started down that bailout wrote him -- pretty far down and in fact you mentioned Greece but also.
-- -- Ireland and other countries and in in Europe we've started that so it's tough to stop it once you start.
It is -- evening again -- -- when you mess with nature gets worse and worse -- create bigger problems down the road if if I'm dictator it's pretty basic I would strengthen and stabilize the Euro you do that through stabilizing the dollar.
That would get investment back and productive ideas I would also cut rather than raise taxes.
It's got to be believed by the markets to Greece is going to grow that Spain's going to grow that it was going to grow that will make their debt far more attractive to investors rather than.
And tax hike in which is gonna drive the producers way.
Good luck stabilizing the dollar with the Federal Reserve standing at the ready to him today to do even more -- and the -- the problem.
They've yet to staple or -- while not emanate from Florida opinion added and there.
