If Europe keeps using band aids rather than addressing its structural problems, then the Euro is in deep trouble and, with nationalism on the rise, so is the EU. If the tea party and Republicans are not removed from the table, then the US moves closer still to banana republic status.
Trouble is no longer on the horizon – it’s in full view.
Economic problems are structural and long-term coordinated plans are required. There is no magic bullet and everything short-term has been tried. In the US, raising taxes and spending on infrastructure and science are required – in other words, spending. In Europe, a little introspection and planning regarding the economic imbalances between the core and the rest must be undertaken. What is missing is leadership. Leadership would inspire confidence, also in short supply. But, in Europe and particularly in the US, waiting for leadership is like waiting for Godot.
By the way, for those involved in donor oriented development programs, watch the money dry up.