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White House hypocrisy May 13, 2018

Posted by hslu in 特朗普, 美國, Politics, Trump, 川普.
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Here is the logic of White House’s complain:

It is okay to laugh about McCain’s dying in private. However, when the joke was leaked to the news media, White House is furious.

Here is what’s transpired:

In private:

“It doesn’t matter, he’s (McCain) dying anyway.”

After it was leaked, White House had this to say:

“He (McCain) and his family are in our prayers during this difficult time.”

I bet you a shinning nickle that people in the White House don’t mean that at all. They absolutely have no intention to pray for McCain. Sanders was upset because the conversation was leaked.

The epitome of hypocrisy.

America the yoyo nation April 30, 2018

Posted by hslu in 特朗普, 美國, Democracy, Islam, Middle East, Military, Muslim, Obama, Trump, U.S. Foreign Policy, 川普, 民主.
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Left or right, make up your mind

Every four years, America elects a president and this guy for better or for worse determines which direction the country goes for the next four years. If he is re-elected, he has four more years to lead the country further down the same direction.

Obama, being black and one of the most liberal senators in the U.S. took America to the extreme left like no other president has ever done: gave away America’s leadership position in the world, adopted a leading from behind foreign policy, apologized for America’s past aggressions, downsized America’s military, pulled American troops from Afghanistan and Iraq, yielded to Iran, drew a red line in the sand and promptly humiliated himself, trashed Israel and Netanyahu, boosted America’s national debt, gave American’s auto companies billions of tax payers’s money, provided de facto amenesty for illegal immigrants, gave free birth control pills to women, promoted LBGT’s agendas and tried his hand on single payer health insurance policy.

Obama’s successes in accomplishing all these liberal agendas did exactly one thing for the United States: they paved the road for the rise of extreme conservatism and gave the White House to Trump.

Trump, with the support of his mostly blue-collar white followers, turned the left leaning liberal America completely upside down and dragged the country to the extreme right whether Americans liked it or not.

Trump, with less than 500 days in the office, wanted to build a wall to keep Mexicans and other illegal immigrants away, tried to stop Muslims from several countries from entering the U.S., boosted the budgets for the military, tried to repeal the Obamacare, cut taxes, bombed the hell out of Syria and a few other countries, started a trade war with many countries, wanted to get out of Iran deal, moved U.S. embassy from Tel Aviv to Jerusalem, got out of Paris agreement, discarded TPP, alienated every American allies, and threatened North Korea with a bigger nuke button.

America was a yoyo nation bouncing from extreme left to extreme right simply because a different person occupies that house in DC.

What crimes have American people committed on November 8, 2016 to deserve this kind of punishment?

And the worst of all this yoyoing in the name of democracy was that American people can’t stop this WH person from doing damages to the nation and they have no recourse for at least 2 years.

And what are looming from the dark alleys of Amerivan liberals now?

What else?

Move the yoyo nation to the extreme left of course.

Hello, people of the yoyo nation, do you feel dizzy, nausea and sick?

Do you want to puke? I have a bag for you.

Just not for Trump March 8, 2018

Posted by hslu in Trump.
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Looking at how chaotic Trump White House operates, it makes you wonder why anyone wants to work for Trump.

There is no doubt that working for the president of the United States is a great experience for any person and having a White House job on your resume will go a long way to enhance your career.

But would you like to work for a boss like Trump?

Many wished they hadn’t.

Here are the unintended consequences of working for Trump:

  • It will land you on special counsel’s black list.
  • You can expect high legal fees out of your own pocket.
  • You may be asked to appear in front of a grand jury.
  • Multiple congressional committees may summon you to testify.
  • Expect to be privately and publically humiliated by Trump at any moment.
  • You are likely to be asked by Trump to publically lie for him.
  • Trump will demand you to publically defend the undefendable for him no matter how silly it looks.
  • Trump will second guess your work and he’ll let the world know that you have done a poor job.
  • Trump will demand unconditional loyalty from you even if it means doing something illegal for him. If you refuse, you’re fired on the spot.
  • Trump will bash you publically whenever you disagree with him.

And, finally,

You may go to jail for a long time with no chance for parole.

怕了?還是要出書? March 1, 2018

Posted by hslu in 特朗普, 美國, Trump, 川普.
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Hope Hicks 要辭職了。這是美國腰帶公路之內,華盛頓 DC 的大新聞。

Source: Businessinsider

你知不知道 Hicks 是何許人也?

  • 29歲。10 幾歲起做過模特兒,有一次上了 Ralph Lauren 的廣告。
  • 2010 年 Dallas SMU 畢業。畢業後,在紐約的一家 PR 公司做過事,在那裏認識 Trump 的大女兒。然後給她做雜事和模特兒,透過 Trump 女兒的關係認識了 Trump,給你Trump 公司做了一,兩年事。
  • 雖然她沒有任何政治經驗和後台,靠她和 Trump 的關係被 Trump 任命爲 Trump 競選團隊的新聞秘書。她身肩新聞秘書的要職卻喜歡躲避記者,被媒體指定爲最年輕 (26 歲),最不夠資格的新聞秘書。
  • 進入白宮後,Trump 專門為她設立了一個新職位:白宮戰略傳播主任。不過大家並不知道這個職位是做什麽的。
  • 後來,一連三個白宮傳播室主任被解僱,Trump 把 Hicks 升爲白宮傳播室主任,負責指揮白宮對外信息交流和每天的記者會。她就在離 Trump 最近的房間辦公,知道許多白宮的內幕消息。
  • 她跟剛剛被解僱的白宮職員秘書談戀愛。這位 Porter 先生已婚,家暴他的兩任太太,經過 FBI 調查,被迫辭職,引起軒然大波。Hicks 還爲 Porter 先生辯護,試圖為他開脫,有失身份,被人指責。
  • 去年十二月被調查蘇俄門的聯邦特別檢察官請去作證。詢問有關 Trump 兒子發出的一封有關 Trump 兒子,女婿和競選主任跟蘇俄律師爲挖掘 Hillary 八卦而開會的信。因為 Hicks 說這封信一定不會離開白宮,恐怕違反聯邦法。此外,Trump 解僱 FBI 主任 Comey 的事也被諮詢。
  • 她昨天在美國眾議員情報委員會作證,被眾議員拷問了九個鐘頭。作證會中,她對蘇俄門有關的敏感話題避而不答,引人注意和懷疑。還承認爲 Trump 說過白謊話。
  • 她今天決定從白宮辭職,另謀他就。

嗯,一個 29 歲的年輕女子,入世不深,沒有任何可以拿得出手的經驗,單憑她和 Trump 的關係,竟然在短短的兩年半之內做到白宮傳播室主任的要職。這個職位非比尋常,是白宮最引人注目的角色之一。一言一行都受到全世界注目。Hicks 這種和 Trump 不尋常的關係,想必一定會引起他人猜疑和強烈的反對。

她為什麼要選一個如此不恰當的時間辭職呢?她剛剛在參議院爲蘇俄門事件作證九個鐘頭,第二天就辭職。為什麼?是不是她忽然覺悟,忽然開了竅?要知道,Trump 正在被美國聯邦特別檢察官調查。聯邦檢察官有無比大的權力。Trump 本人,他的兒子,女兒和女婿都是被調查的對象。Trump 的幕僚也都一一的被請去談話。如果你說謊,跟其他人的對話不同,一不小心講錯了話,就要去聯邦監獄坐牢,不能假釋的。就算不坐牢,龐大的律師費就可能把你攔腰一斬,打斷你的膝蓋,永世不得翻身。

Hicks 是不是知道她有不可避免的麻煩上身?是不是怕再度惹火燒身?還是要全力應付即將到來的法律訴訟問題?

要不然就是她有不少多油,多汁,夠酸,夠甜而又不可告人的白宮幕後消息。這些八卦可以寫一本厚厚的書來換取豐厚的報酬和聲望。要知道,Fire and Fury 的作者,Michael Wolfe,靠了這本書賺了一大筆錢:可能高達八百四十萬美金。Hicks 一定有什麼不可告人的秘密,她最好早點把它寫出來,不然被其他人,例如:Bannon, Spicer, Gorka, Omaraosa Manigault 或 Scaramucci, 站了先機,Hicks 的故事就不值錢了。別忘記 Omaraosa 一下台就迫不及待的影射過什麼火辣辣的內幕消息。我猜,出版商恐怕早已經跟她談條件,準備簽合約了吧。

你想,Hicks 能靠什麼賺八百四十萬?再去做模特兒?恐怕老了一點吧?不過從白宮出來的模特兒還是有一定的吸引力的。

要寫就快點吧。有故事就早點告訴大家吧。再等下去,如果 Trump 的女婿 Kushner 決定要寫書,不止是 Hicks,連所有的其他白宮幕僚都沒戲唱了。


Sex, lies, Russia and communication director. Powerful combination。


內戚掌權,白宮裏面雞飛狗跳 February 26, 2018

Posted by hslu in 特朗普, 美國, Democracy, Trump, US Government, 川普.
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Source: Yahoo News


Source: NYT


不知道德國的 Merkel 怎麽看這一齣美國鬧劇?

Young Americans and Republicans “Eat what they sowed” December 8, 2013

Posted by hslu in China.
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You already knew what’s going on with Obamacare, the software.

It’s a mess.


You already knew what’s going on with Obamacare, the policy.

The worst is yet to come.

You already knew how Obamacare makes people losing their full time jobs.

You already knew that Obamacare drags down the US economy.

And, finally you already knew that Obama was forced to admit that he had lied.

Yet, Obama is still in the White House and Obamacare is still the law of the land. 

If you voted for the liar and have to pay for your mistakes by way of higher insurance premium and fewer work hours, you have no one but yourselves to blame.

We call this: “自食其果.” “Eat what they sowed.”

The others got the shaft because of a failed political system: Democracy. Obama, Pelosi, Reid and Democrats worked hard for their party. They were supposed to look after the benefits of the majority of the American people. They didn’t when they have the White House, the Senate and the House.

They blatantly abused their power to benefit their own party.

This is wrong and this is the inherent flaw of this failing political system.

Republicans have no one else to blame but themselves too. Chief Justice Roberts defected to the Democrat Party. As a result, the Republican Party lost everything. With overwhelming majority of Latinos voting for Democrats, the Republican Party will be marginalized for years if not decades.

We call this  自食其果” for the Republican Party as well.

Democracy, like human nature, is fundamentally flawed and the flaws are showing up in many democratic countries in the world.

In the long run, democracy equals socialism and is doomed to fail.


马英九在台湾水门案输的好惨 – Wiretapping Taiwanese Style October 6, 2013

Posted by hslu in Economics, Politics, Taipei, Taiwan.
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Because of Watergate, Nixon resigned as the president of the United States.

马英九 probably will not be forced to resign as Taiwan‘s president due to his involvement in Taiwanese Watergate because Taiwan’s presidency is well protected under the constitution and impeachment is a very high huddle to cross. He and his party, 国民党, however will pay a hefty political price because of many personal mistakes made by 马英九.

马英九, basically threw his entire law training from Harvard Law School out of the window and let his personal animosity against 王金平 clouded his judgement from the very beginning.

马英九 has done irrevocable damages to his partyHe should resign as the chairman of 国民党. 国民党 will lose more seats at 立法院 next year. It probably will lose in the mayoral and county official elections too.

In a nutshell, this is why 马英九 failed so miserably:

  • First of all, the root cause of 马英九’s debacle is his determination to remove 王金平 as 立法院院长;the chairman of Taiwan’s legislature body; 立法院. 王金平, being a member of 马英九’s party, may have showed more affiliation to the causes of the opposition party than those of his own party. In short, as far as 马英九 is concern, 王金平 is in the way. He must go. The question is how to remove him.
  • 马英九, as the chairman of 国民党, did the following; many of them unwise and not very well thought of. It showed his total incompetency and lack of judgement. The worst nightmare for 马英九 was that the whole drama got played out on national TV like a soap opera for every citizen and foreigners to watch. 马英九 and all his subordinates’ incompetence had no place to hide:
    1. Used illegally obtained information (via wiretapping on an unrelated matter, hence the Watergate connection) and instructed the head of Taiwan’s secret service agency to announce 王金平’s unethical activities with a leader of the opposition party while 王金平 was out of the country to marry his second daughter;
    2. Deprived 王金平 due process to proof his innocence and declared openly that 王金平 was guilty as charged;
    3. On the day of 王金平 daughter’s wedding, 马英九 publicly demanded 王金平’s return to answer the charges;
    4. Publicly humiliate 王金平 and called him unfit to be the chairman of 立法院 and remove his party membership.
    5. The president office publicly suggested that the vice chairman of 立法院 is more fit to takeover王金平’s position because she is well qualified and, more importantly, loyal to 国民党.

As 王金平 fought to regain his reputation and to keep his 立法院院长 position with overwhelming support from members of the opposition party, 马英九‘s lack of judgement  and his subordinates’ incompetency were revealed one piece at a time like peeling an onion; layer by layer and none of them was good for 马英九 though.

  • The information gathered from wiretapping on 王金平 may not stand in court. The wiretapping was granted by the court for something and someone else.
  • By most accounts, the head of the secret service agency shouldn’t give the information gathered from wiretapping to 马英九 because the case wasn’t revealed to the public and the persons involved.
  • The punishment to 王金平, if he is unethical as charged, should be taken of  by 立法院 according to its regulations. 马英九, being Taiwan’s President, has no authority over this matter. He over-stepped his bound.
  • 马英九, as the chairman of 国民党, ran with this information and removed 王金平’s party membership and as 立法院院长. In essence, 马英九 used his unique position (President and party chairman) to interfere with the internal matter of a department of the government.
  • The lower court and the higher court ruled in favor of 王金平 and allowed him to stay as 立法院院长. 

In the end, 马英九 and members of his inner circle have to be deposed for their roles in the wiretapping matter. They probably will answer to 立法院’s inquire in the coming days and months too. The legality of 马英九 and others’ knowledge of information from wiretapping before it was revealed publicly will be determined soon. The result of this investigation may be unfavorable to 马英九 too.

马英九 was going to appeal high court’s unfavorable decision to the highest court in the land but decided to give it up. 王金平 will for sure keeps his chairman position and party membership. As such, 王金平 will be an even bigger eyesore to 马英九 going forward. The worst part of all these is that 马英九 still has to rely on 王金平 to move his agenda in 立法院. However, the damage has been done. We call this: 泼出的水已经是收不回来了。

Many people involved in wiretapping and its illegal revelation before its time, including judges and the head of the secret service agency, will probably lose their jobs and possibly their retirement benefits too. Most if not all are members of 国民党.

The opposition party,民进党, will for sure call on 马英九 and the head of the executive department to resign. An impeachment movement may be in the work too. It probably will not go very far but it is an embarrassment to 马英九 and a constant reminder to Taiwan’s citizens of 马英九’s incompetency. For sure, the opposition party will get as much benefit from 马英九’s missteps. They will drag this drama out.

马英九’s legacy will forever be tarnished by his bumbler description and his lack of judgement on this matter.

The damage to 国民党 has been done. I can not image just how low the morals of members of 国民党 could be at this time. The impact to 国民党 on next year’s general election could be severe. The chance of 国民党’s 2016 presidential election no doubt also took a hit.

Above it all, no one in the government will seriously work on reviving the economy which is in the tank right now. GDP growth of 5 or 6% has been replaced by words like 保2有望;meaning maintaining at 2% level is a possibility.

马英九又输了。这次他和国民党输得很惨。马英九的正义大旗已被撕得粉碎。他被民进党和王金平打的全无还手之力。马英九实在好可怜!许多国民党的党员一定很灰心:为什么他们选出来的总统一而再再而三的让他们失望?I don’t have an answer.

In many ways, 马英九 is the Jimmy Carter of Taiwan: a good and honest person, insisting on doing everything big and small himself but the job was way over his head. He is, based on his past performance, more than likely to fail in the end.

Well, 马英九 still has three years to prove everybody wrong.

I wonder what the White House has to say in private. More importantly, will 习近平 re-evaluate China’s policy wrt Taiwan?If he does, what will it be?




Are Stocks cheap? August 3, 2013

Posted by hslu in Congress, Economics, jobs, Obama, Obamacare.
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You decide. Here is just one of its metrics.

P/E ratio of S&P 500; 1960 to August 2013

P/E ratio of S&P 500; 1960 to August 2013

Keep in mind that stocks do not have to be justified by what’s going on in the economy right now.

We also have QE3 by the Fed which has been manipulating the economy, the equity market and the Bond market. It also artificially lowered the savings rate at banks. of course, you already knew this when you opened your bank statements years ago. Bernanke justified his action by saying that inflation is low and people are more than compensated by the growth in the stock market and the equities of their houses. Besides Bernanke can hide behind his dual mandates from the Congress. But we have no where to hide but to chase yields at our own risk though.

The Fed has forced everyone to riskier assets. By doing so Bernanke has popped up the bubbles in equity market and the real estate market. By keeping the rate low, the biggest bubble is in the long bonds and not m=very many people knew it.

What if these bubbles are eventually popped by Fed’s own action? Will we get a bailout like the too-big-to-fail and too-big-to-jail banks? 

It appears that Fed’s money printing action will continue but September is a critical time. The stock market is probably betting on tapering starting in September.

Why? Isn’t the economy lousy?

Yes, the economy is very lousy. But:

About 69% of Fed’s money is not in the economy. Velocity of money is declining and the Fed knew it. The question you want to ask yourselves is this:

“Where is the growth in GDP?” and

“Where are the jobs?”

The trend doesn't lie

The trend doesn’t lie

All the Fed has managed to accomplish is a GDP growth rate of 1.7% in Q2 which is saying that the GDP has grown by the amount that roughly matches inflation. In other word, the economy didn’t grow at all in real terms. Despite all the QEs the Fed has done in the past.

And 162K new jobs created in July were not even enough to accommodate new entrants in the job market. The White House and liberal media hailed the new jobless number but they have stopped mentioning the fact that US economy has about 250K people entering the job market every month. In other words, the United States is falling behind very seriously.

Pretty amazing, isn’t it.

It is also very sad too.

In case you don’t know or you have been fooled by the 7.4% jobless rate headline number:

There are currently 90 million people who are not working in the richest nation in the world: The all mighty United States.

About 47 million of that 90 million people are on food stamps. No question that more than 47 million of that 90 million people are on other forms of government hand outs too.

That is about all Bernanke has been able to do.

Yeah, 7.4% unemployment rate! Great achievement by the Fed, Obama, and the Congress.

I have no doubt that Obamacare has something to do with the fact that part time worker has grown in the past several quarters.

More part time jobs created due to Obamacare

More part time jobs created due to Obamacare

Every where you see, you see the foot print by Obama’s failed policy which hinder job growth and business investments. The so-called middle class in the United States is disappearing and the United States has become a nation of hamburger flippers, hotel maids and night time stock persons at local Wal-Mart and maybe K-Mart as well.

This is the hallmark of the Democrat Party and the hall market of one of the most liberal president of the United  States: Obama.

Well, in conclusion, the Fed is very nervous of the unintended consequences of all the QEs they did in the past but they also knew  that they have no control of the Bond market.

To put it in simple terms:

The Fed has put itself between a rock and a hard place. Bernanke will probably do everything he can to taper. The economy may not let him to though.

We’ll have to watch the drama but we are actually one of the players in the drama as well whether we like it or not. Bernanke will retire and the “烂摊子” will be someone else’s problem by February, 2014.

He has had enough. I can tell.

But not to be too harsh on Bernanke on the eve of his retirement, he has to learn a lesson from Mario Draghi because Draghi has single-handedly calmed the European sovereign market without printing a single Euro.

History will be the judge on Bernanke. Not me. But his action will no doubt affecting my and your lives. We have no choices.

Well, I had enough QEs too.

But heck, no one listens to me. Not even my wife. LOL.

Community Organizer-in-Chief is at it again July 20, 2013

Posted by hslu in China, Obama, Obamacare, Politics, Racial Bias, Taiwan.
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The community organizer-in-chief is back at organizing the black communities again. This time he did it from the White House on national TV.

He capitalized on the death of a black guy before the trial with words like these:

  • “”If I had a son, he’d look like Trayvon.”
  • “When I think about this boy, I think about my own kids.”

I called this jury tampering and stirring up the emotion of his black base.

Actually there must have been many black guys who got killed at a young age. I guess all of them will look like Obama’s boy if he had one. The only problem was that those black guys got killed by other blacks. George Zimmerman‘s trouble will never end because of his last name.

He then did more damage to race relationship in the U.S. after Zimmerman was found not guilty with the following statements:

  • T. Martin could have been me 35 years ago,”
  • There are very few African American men who haven’t had the experience of being followed in a department store. That includes me.”

He did his best to add gasoline to the racial fire and along with guys like Holder and Sharpton will keep racial warfare in the United States alive and kicking for decades in the future.

It will be pretty ugly after tomorrow’s parades because those guys on the street believe Obama gave his permission for them to carry out the demonstrations.

Obama and 李登辉 of Taiwan are very much alike: two shameless politicians who did a lot of damage to their respective country:

  • Obama played the race card to shore up his black base and refuse to let the race issue go away. A black president will always look after his black friends even to the detriment of the entire country. I am not surprised! I am not surprised at all! I knew it will happen the moment he was elected in 2008. If you do not believe me then answer this question: Who were benefited the most by Obamacare?
  • 李登辉 stirred up the long dormant ethnic hatred between Taiwanese and people who came from mainland China (and their kids) before 1949. He raised the issue for the sole purpose of getting him elected as the president of Taiwan.

I actually fear for the future of the United States because I thought discrimination against blacks has slowly dissipated. It is unfortunate that some people will simply not let it die. I am certain that Obama’s words and action will  make racial bias even worse than it had been in the past.

What an irony: the first black president of the United States has divided this country even further along the racial line. It is sad but it is true.

And I am equally saddened by the stagnation of Taiwan, economically and politically. I firmly believe that ethnic divide was largely responsible for the lost decades. I am afraid that the ethnic relationship has really taken a back seat and the island will forever be held hostage by this thorny issue because, like Obama, some politicians in Taiwan simply will not let this issue die. 

Hmm…, what will happen if Taiwan is united with China. Will this be an issue at all?



Merkel beat Obama December 12, 2011

Posted by hslu in Congress, Economics, Global Affair, jobs, Obama, Politics.
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The root causes of 2008 financial crisis and great recession were the greed of Wall Street and corruption by willing participates in the Congress and the White House.

With a financial crisis on hand, the United States chose to flood the market with tax money and Federal Reserve’s printing press which bailed out politicians’ bodies on the Wall Street and covered their own asses. In the process the politicians in the United States and Bernanke ignored the threat of inflation in the future, disregard the enormous financial burden on our kids and grandkids and arguably avoided a short term collapse of the financial system in the world.

In other words, Americans get used to kick the can down the road unlike what Chinese people have been taught for thousands of years: “積穀防饑 未雨綢繆,” “ji1 gu3 fang2 ji1 wei4 yu3 chou2 mou2,” which means “ save some grains for the hard times in the future” and “ fix your houses when it is not raining.”

This is the all too familiar Wall Street and American corporation mentality: our top priority is our next quarter’s results and the performance of our stock prices. We’ll worry about our long term problems when we have to in the future.

Ditto for American people in general when time was good: enjoyed life now with borrowed money, credit cards and home equity loans, so that they could have regular vacations, flat panel TVs, boats, fancy cars and big houses. They did it to show off their fancy life style, pump up their egos and satisfy their short term pleasure in life.

The disastrous results are clearly laid out in front of our eyes when things are not that rosy: near zero savings rates, high credit card debts, lost homes, foreclosed mortgages, soup lines, food stamps and welfare. Even worse, the Americans are not equipped to handle the consequences of globalization bought on by the very free trade policy that politicians are so proud of; American people are ill-prepared to compete with billions of hard working people in foreign countries, be it Chinese, Indians, Mexicans, Salvadorians, Thailand, or Koreans. In general, Americans lack the necessary education to compete in the high tech fields and Americans are lazy when competing with Mexicans and Salvadorians in low wage jobs. If you do not believe me, just look at the sorry state American’s public school system is in. And on the low wages job market, have you seen any white people cutting grass for you or washing dishes in restaurants? They choose to stay at home, watch TV, collect food stamps and use up their 99-week unemployment benefits instead.

This feel-good-now mentality is unfortunately reflected in American’s slow decline orchestrated by none other than Obama who thinks that America shouldn’t always take the lead on the world stage.

This is where Germany’s Mrs. Merkel comes in.

Germans work hard and they have their economy to prove it. They do not believe in short-term satisfaction on the back of future generations. They also believe that the financial market should be given a whack on the side of their collective head with a 2×4 so that they can be taught a lesson that they will remember. They despise countries like Greece, Spain and Italy and do not think they should use Germany people’s tax money to bail out people in these countries.

Because of this deeply rooted value system, Mrs. Merkel chose a vastly different route despite Obama’s calling right before the latest EU summit of all member countries:

“There’s a short-term crisis that has to be resolved,” Obama reminded Merkel, “to make sure that markets have confidence that Europe stands behind the euro.”
Mrs. Merkel, like some Germany officials, believed that the short-term crisis Obama referred to was actually his diminishing chance of re-election in 11 months, which will be damaged further by a prolonged recession without flooding the European economy will tax payers’ money. Mrs. Merkel and many Germans believe, not dissimilar to Chinese’s philosophy; me included, that when time is tough, one has to cut back on one’s spending and not piling on more debt for the sake of avoiding short pain, however unpleasant it may be. However, since Germany is bonded together with these countries by the common currency and a weak EU treaty which gave Mrs. Merkel little leverage to force these feel-good-now countries, including France, to do what is necessary to right the wrong for the sack of long term stability, i.e., cutting back on government spending, reducing public workers’ pension benefits, stopping the lazy life style of their citizens, giving up part of country’s solvency by allowing European commissions to exam their national budgets and adapting German’s style of governance and financial practices.
Mrs. Merkel used the threat of the imminent breakup of the Euro to force everyone in the room, including France’s Sarkozy, to adapt German’s financial practices and fiscal policies and follow Germany’s lead to whip the European countries in shape in the long run.

There is no doubt that there will be short term pain to be paid from a pending recession bought on by reduced government and private sector spending from many European countries. But Mrs. Merkel achieved one thing that no one was able to do in the past: forging the European Union into a more integrated entity which will no doubt out-perform the United States, a declining country saddled with crushing debt and the threat of inflation, in the future.

Mrs. Merkel’s German beat Obama’s America hands down. Europe nations will suffer now but American’s problem will come just about the time when Europe begins to stand up from the ashes.

But Obama is happy because Obama got his wish that America is no longer the lead nation in the world.

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