Europe - Not Looking Good

Mario Draghi, president of the European Central Bank, has brought the Eurozone back from the brink. He accomplished this by measures not unlike quantitative easing. Countries with troubled economies are at least not under so much pressure right now over sovereign debt.

But levels of unemployment in Spain, Italy, Greece and Portugal are much too high (on the order of 25%) and the economies of other Eurozone countries, including the Netherlands aren't much better. The economic distress is leading to a rise of extremist political parties.

Brussels Eurocrats and German bankers seem oblivious to the consequences of their obsession with financial austerity. To date, the result of all this austerity is larger deficits. Which leads to predictable calls by the masters of the system for even more austerity. Which will lead to even larger deficits.

I fear we know where this story leads. It all depends on whether Europe makes good use of the time Draghi won for them. Right now, that doesn't appear likely.

Meanwhile, next door in Hungary, an authoritarian government is grabbing even more power.