Wednesday

-The American People Have Spoken

Euro membership has nevertheless sheltered Germany, which relies on exports for 41 percent of gross domestic product, from the ravages of the global financial crisis, said Juergen Pfister, chief economist at Munich-based lender Bayerische Landesbank. Prior to the euro, the mark was a haven in times of turmoil and prone to volatility, surging about 50 percent against the Italian lira in the first half of the 1990s.

“The deutsche mark would have appreciated massively as a result of the financial crisis, harming German exports and making the 2009 recession much worse,” said Pfister. “The euro provides stability.”

Mark Cliffe at ING Bank NV calculates that any splintering of the euro area would mean a deflationary shock in Germany and a slump in output of about 10 percent over two years.
-Germans Show No Way to Give Up on Euro

The Obama administration expects a record budget deficit this year of more than $1.5 trillion, or 10.6 percent of GDP, according to projections the White House released in February. The U.S. deficit is a greater percentage of GDP than any other major industrialized nation except the U.K., where it is estimated to reach 11.4 percent, and Ireland, where it will be 12.2 percent, according to International Monetary Fund projections released in April.

The only deficit-reduction measure that gets strong support in the poll is higher taxes on upper-income Americans.
-Americans in 70% Majority See More