Washington Spurs Hiring When It Supports American Businesses
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Most of the focus in Europe this week has been on the acute financial situation, and whether Greece is about to run out of Euros, forcing it to default.
But there were also larger discussions of economic policy, and how to get Europe growing again which, after all, is going to be key if the sovereign debt issues are resolved.
Among other things, Tim Geithner encouraged Europe (the Germans, mostly) to do more fiscal stimulus, and Germany rejected him.
But Germany really should be spending more to grow the economy.
Here's the problem in a nutshell...
Theoretically, in a recession, a government should have no problem cranking up spending, because the private sector has retrenched, and retrenchment means more savings, and more savings means more money in banks, and more money in banks means more bond buying, and thus the circle is squared. Private sector savings mean public sector deficits aren't a problem.
But in Europe the cycle is broken. Italian and Greek savers are under no compunction to save domestically, and long-story-short a ton of money is flowing specifically into German bunds, where yields are at record low levels.
Here's a look at the German yield curve. You'll see the numbers are pretty similar to those in the US.

So there's tremendous demand for German debt (because there's nothing good to invest in, and nobody wants the debt of any other country), and in theory this should make it super-easy for Germany to crank up spending. But due to the German's unwillingness to do these kinds of things, the money just goes into German bunds and just sits there, accomplishing nothing, yielding very little.
So the cycle doesn't work in Europe, because of the weird thing where countries share a currency, but don't share a Treasury.
What's sad is that, officially, Europe doesn't seem to get that that's its problem. How else to explain this notion that Tim Geithner shouldn't lecture Europe because the US has high government debt? High government debt isn't a problem in the US, and really it's not the problem in Europe either.
Any attempt to 'solve' Europe without recognizing the inherent brokenness of a system that divorces the monetary authority from the fiscal authorities is doomed to fail, and nobody seems to realize that yet.
SEE ALSO: Here's who goes bust if Greece defaults >
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Sen. Lindsey Graham (R-SC) declared on CNN's State of the Union that the 2012 election is the GOP's to lose.
"President Obama has done everything he knows how to do to beat himself," he said. "The reason people have little conference in President Obama's policies is they're just not working. Everything is worse."
Graham had been one of the friendliest Republicans to Obama during his first two years in office, but has become increasingly critical of Obama's foreign policy decisions as he prepares to wind down the Iraq War.
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Nonviolent protestors occupied the Wall Street area in peaceful, yet loud, demonstrations Saturday.
The event, which is being called #OccupyWallStreet and #TakeWallStreet on Twitter, included a variety of groups with different agendas.
Some were angry with banks, the president and the government, while others were concerned with issues such as poverty and the death penalty.
One group called Adbuster's goal was to have President Obama end "the influence money has over our representatives in Washington."
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Tilt-shift photography can produce some awesome effects. So can time-lapse video.
A videographer combined the techniques to produce this video of Frankfurt Airport. The planes look like they fell out of a five-year-old's toy box (via Jaunted).
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