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On Defense, France Bites the Bullet, But Avoids Strategic Insolvency May 7, 2013
Iceland’s Recovery Saga Presents Opportunities for Brussels, Washington—and Beijing May 6, 2013
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GMF celebrates its 40 year history and Founder and Chairman, Dr. Guido Goldman at Gala Dinner May 09, 2013 / Washington, DCGMF held a celebratory gala dinner at the United States Institute of Peace in Washington, Wednesday May 8.
In this podcast, GMF Vice President of Programs Ivan Vejvoda discusses last month's historic agreement to normalize relations between Kosovo and Serbia.
Anchor Elaine Reyes speaks with Andrew Small, Transatlantic Fellow of the Asia Program for the German Marshall Fund, about Beijing's potential role in brokering peace between Israel and Palestine
Above the Fray No More
May 23, 2011 / Bruce Stokes
BRUSSELS—Europe’s sovereign-debt crisis is back with a vengeance, and if the United States seems to be in splendid isolation, think again.
Greece, which kicked off euro crisis 1.0 in April 2010, is again spiraling out of control. Bond investors, convinced that some kind of default is likely, are demanding yields as high as 25 percent. Workers and retirees, furious about drastic cuts in spending, are rioting in the streets. Ireland and Portugal, euro crisis 2.0, may not be far behind.
Anxiety about a broader contagion is hammering the euro and rattling European bond markets, and the United States is more vulnerable than it looks. When the first wave of Europe’s debt crisis hit a year ago, the U.S.’s fledgling recovery immediately began to stall. Stock-market volatility spiked to levels not seen since the depths of the financial crisis, and stock prices weakened.
Last year, the Federal Reserve Board jumped in with a second round of “quantitative easing”—creating money out of thin air to buy Treasury bonds, push down long-term interest rates, and rev up economic activity. If the European crisis gets worse again, the United States will have fewer tools to fight off a contagion.
For full article, please see the PDF attached.
Photo by Piazza del Popolo
