from The Water's Edge

The World Next Week: The Eurozone Crisis Continues

October 6, 2011

Blog Post
Blog posts represent the views of CFR fellows and staff and not those of CFR, which takes no institutional positions.

Nicolas Sarkozy and Angela Merkel at a summit in Brussels in March 2011. (Francois Lenoir/courtesy Reuters)
Nicolas Sarkozy and Angela Merkel at a summit in Brussels in March 2011. (Francois Lenoir/courtesy Reuters)

The World Next Week podcast is up. Bob McMahon and I sat down to discuss the G20 meeting in Paris; next week’s Republican presidential debate at Dartmouth College; and the start of the “underwear bomber’s” trial.


The highlights:

  • Incrementalism rules the day in the eurozone crisis as the decisions that European governments take in dealing with the ripple effects of Greece’s insolvency always seem to be a step behind what is happening in the markets. The result is growing fear that the eurozone crisis will end with a bang rather than a whimper.
  • Next Tuesday’s debate in Hanover, New Hampshire is being touted as the first economic debate. The candidates have covered plenty of economic topics in their first six debates, so expect to hear many of the same themes: no tax hikes, less regulation, and more fiscal responsibility. One thing to watch for is whether the moderators can get the candidates to offer up specific advice on what the United States should do about the eurozone crisis and China’s emergence as a global economic power. For better or worse, the United States is now connected to the world economy, which means we are affected by the choices that other countries make, choices we may have difficulty influencing.
  • When Umar Farouk Abdulmutallab was arrested for attempting to blow up Northwest Airlines Flight 253 on Christmas Day 2009, homeland security and counter-terrorism looked to be political vulnerabilities for Barack Obama in his re-election run. With Osama bin Laden and Anwar al-Awlaki now both dead, that’s no longer the case.
  • My Figure of the Week is Steve Jobs. Bob’s Figure of the Week is 90. You know why I made my choice. You have to listen to the podcast to learn why Bob made his.

The New York Times reports on German Chancellor Angela Merkel’s move to protect vulnerable banks while the Economist considers just how much more capital shaky financial institutions may need. The Washington Post announces the details of the debate it will host with Bloomberg TV next week, and the New York Times has a feature article discussing the unique approach of one perhaps under-reported candidate, Herman Cain. The Los Angeles Times covers jury selection in Abdulmutallab’s trial and the Atlantic’s Andrew Cohen argues that the trial should be public.