The bad news is that Washington has to make hard choices now to avert disaster. The good news is that some members of Congress are showing real political courage.
Greece’s eurozone partners and the IMF this weekend agreed to a $146 billion bailout to stem the Greece crisis. But in return, the country’s leaders have been forced to implement a harsh austerity program.
The Greece debt crisis, which is still subject to German parliamentary approval and may be challenged in court, is putting unsustainable stress on the European Central Bank, some analysts say.
The Greece debt crisis should be a warning. History shows that unless this buildup of sovereign debt is tackled eventually by raising taxes and controlling spending, then there are only two outcomes: default or high inflation.
The Greek debt crisis continued to roil European debt markets on Wednesday after a leading rating agency cut the country's debt status to junk. While short term aid to Greece is a near certainty, economists warn that more international cash – and painful political steps in Athens – will be needed.
With its bonds rated as junk, the debt crisis in Greece must prompt Athens to take far greater austerity measures than originally planned. Political leaders and the public must find the courage for the necessary sacrifice.
Thomas Schroeder from Norden adjusts his turbine-kite at the North Sea coastal holiday village of Norddeich, Germany, on Monday.
The World Bank agreed Sunday to boost China’s voting share to 4.42 percent, giving it the third biggest say after the United States and Japan.