Why Europe matters for America

Interestingly, the economic developments in Europe might have serious consequences for the American politics:
"If I understand the news coming out of Europe correctly, the new head of the European Central Bank is offering a simple deal: If fiscal policy becomes hawkish, monetary policy will be dovish.  In other words, as government spending is cut to put European governments on a sounder financial footing, monetary policy will do its best to ensure that any adverse impact on aggregate demand is kept to a minimum."

In simpler American English: Europe votes Republican. If this European policy succeeds, the American voters will have a reasonable question to Obama, as to why he advocates more stimulus spending. If, however, the policy fails - Obama's insistence on more spending will be effectively vindicated.