The European debt crisis provides Germany the opportunity to preach its disciplined approach to monetary policy. Should it succeed in remaking Europe in its monetary image, Europe will prosper. Those who follow the Anglo-American model of Keynsian loose money must fall in line.
From French bankers and Italian politicians to British strikers and the average Greek, everyone in Europe is feeling the cost-cutting brought on by the euro debt crisis.
European stocks as well as the euro dropped as optimism from last week's euro crisis summit yielded to tough questions about the EU's ability to avert fresh crises.
US stocks were down near session lows in midday trading. The European Central Bank's announcement that it had no large-scale bond-buying plan undercut enthusiasm for US stocks.
The Dow rose 78 points to close at 12097 after a threat to Germany's credit rating mostly erased an early morning rally
Italian prime minister Mario Monti will present a new austerity plan to his country's parliament on Monday.