Credit is a necessary ingredient of economic growth. Employment growth is especially driven by small to medium sized enterprises. Start up businesses and entrepreneurship are an important part of innovation and long term economic growth. While larger, more established businesses have access to capital markets, smaller businesses without a track record do not.

For a collection of countries to share a common currency and thus monetary policy, it is not clear that a common fiscal policy is required or desired. This is just another claim made by experts that hasn’t been questioned or challenged.

1280 on the S&P might dispel fears of recession. That would be a false comfort. Markets do not move in straight lines. 2002-2007 was a market in exuberant mood. 2008-2009 was a market in panic and fear that the world as we knew it would end. 2009-2010 was relief, that the world would not end

China did not save the world in 2009. It saved itself. When international investors effectively refused to further finance the Western economies, it became clear that the Western consumer would soon be the Western net saver.

  Anyone hopeful for fiscal union in the EU should recall the 1992 Treaty on European Union, also called the Maastricht Treaty.