I find it amusing that now we see the European Central Bank learning to love quantitative easing.
ECB President Mario Draghi, at Jackson Hole last week, said that the ECB would do whatever it takes to stimulate the European economy. We now have governments throughout the Western world that have been following the Keynesian mantra for years now, and the result is a stinking pile of government debt that could reach to Mars and back.
The bottom line is that spending all of this money hasn’t helped; Europe is still creeping along or possibly going into a recession due to the Russian sanction feedback loop and a continuing delay in needed structural reforms to its economies. Labor markets are still rigid, entitlements are soaking up too much money, and regulatory overreach is rampant. All of these drown out economic growth.
The simple fact is that Europe cannot come to terms with this reality. Therefore, the continent will continue to limp along for years as national governments kick the can down the road for the follow-on generations to deal with. This is irresponsibility in its most extreme form.
I’ve always said that at its core, Marxism is simply extreme irresponsibility. This is being proved right in Europe and the United States as we steal from our children.
So the ECB is going to print. What does that mean for the United States and our position in the world? And even more importantly, what does it mean for our national security?
What it means is that Europe is going to get weaker economically and, most significantly, militarily. Defense budgets will continue to be starved, and the already weak military capability of Europe will continue to atrophy. This means that countries like Russia and China will continue to be emboldened to do things that are against our national security interests and against all international norms. They will do this because they no longer fear Europe, and NATO will be able to act in a concerted and effective manner.
Europe is basically surrendering its national sovereignty to whomever can give them money. Eventually, the pressure will become unbearable; and many nations outside of Germany will have to default on their debt or accept an offer they can’t refuse from their creditors.
The United States is not far behind and stands at a crossroads over the next few years as elections decide the fiscal and monetary future of our country. It is still not too late to right our financial ship, but time is running out. I fear it has already run out for Europe as more and more threats appear on the horizon.
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This post originally appeared on Western Journalism – Informing And Equipping Americans Who Love Freedom