Germany to Obama: Your Idea is Stupid – Would Threaten AAA Sovereign Debt Limits

This is exactly what Chris Christie was talking about in the foreign policy portion of his speech at the Reagan Library. The Obama administration can’t take care of the business of the United States, and isn’t respected for telling others how to handle theirs.

Wolfgang Schauble

The Telegraph (read the entire story here):

German finance minister Wolfgang Schauble said it would be a folly to boost the EU’s bail-out machinery (EFSF) beyond its €440bn lending limit by deploying leverage to up to €2 trillion, perhaps by raising funds from the European Central Bank.

“I don’t understand how anyone in the European Commission can have such a stupid idea. The result would be to endanger the AAA sovereign debt ratings of other member states. It makes no sense,” he said.

Mr Schauble told Washington to mind its own business after President Barack Obama rebuked EU leaders for failing to recapitalise banks and allowing the debt crisis to escalate to the point where it is “scaring the world”.

“It’s always much easier to give advice to others than to decide for yourself. I am well prepared to give advice to the US government,” he said.

Posted by Maggie @ Maggie’s Notebook