A big reality check for Obama and the US
HARDLY had President Barack Obama and the US Congress cobbled up the "sugar-coated Satan sandwich" to save the United States from bankruptcy than Spanish and Italian bond yields soared. In other words, the financial markets have little faith in the solvency of economies on both sides of the Atlantic.
At the core of all their troubles is one little word that indicates a huge dilemma: debt.
Big and small economies alike labour under this millstone, so familiar to ourselves in Ireland. A debtor country borrows more money, often at usurious rates of interest, thus increasing the overall debt burden. It cannot be repaid, or even greatly eased, except by economic growth.