Germany Says 'Great Uncertainty' About US Debt

[dkf]

Reuters | September 11, 2012 | 06:38 AM EDT
German Finance Minister Wolfgang Schaeuble questioned on Tuesday how the United States could deal with its high levels of government debt after November's presidential election.

In a speech to the Bundestag lower house of parliament to open a debate on the 2013 German budget, Schaeuble said worries about U.S. debt were a burden for the global economy, hitting back at Washington which has criticized Europe for failing to get a grip on its own debt crisis.

In private, German officials often express concern about U.S. debt levels and the inability of politicians there to reach a consensus on how to reduce it, but Schaeuble's public remarks underscore the extent of the worries in Germany.

"Ahead of the election in the United States there is great uncertainty about the course American politics will take in dealing the U.S. government's debts, which are much too high," Schaeuble said. "We need to remind ourselves of that sometimes and the global economy knows that and is burdened by it."

http://m.cnbc.com//id/48982485

[WMBriggs]

1. The Telegraph also weighs in

See also this: http://www.independent.co.uk/news/world/europe/the-week-that-could-make-or-break-the-eurozone-8122407.html

[2ndAmForComputers]

2. Reading your posts, I sense a pessimist tone lately.

I understand why.

[dkf]

4. The long term financial viability of this country has always been at the top of my list.

But I know most simply could care less. Well it's not those with assets who get messed up when government's renege on their promises. It's the poor. I feel very bad for what seems so obvious to me.

[1StrongBlackMan]

3. And yet ...

Germany continues buying U.S. Treasuries.

And, in imagine this:

In Europe, Germany's Constitutional Court said on Tuesday that it will go ahead with a long-awaited ruling on Wednesday on the legality of the euro zone's new permanent bailout fund and budget rules, despite a last-minute legal challenge by a member of parliament.

and that, are merely a coincidence?

What effect do you suppose talking down U.S. bonds (that, did I mention the rest of the world, including Germany, is still pretty high on) would have on the issuance of euro-zone bonds?