Playing Poker with Trillions

From an interesting, if a bit overstated, article in Der Spiegel (English version), via MetaFilter, which analyzes the enormous amount of debt the U.S. and Europe have incurred:

The attempt by countries to bolster the faltering financial system has in fact increased their dependency on the financial markets to such an extent that their policies are now shaped by two sovereigns: the people and creditors. Creditors and investors demand debt reduction and the prospect of growth, while the people, who want work and prosperity, are noticing that their politicians are now paying more attention to creditors. The power of the street is no match for the power of interest. As a result, the financial crisis has turned into a crisis of democracy, one that can become much more existential than any financial crisis.

Few would doubt that the amount of debt westernized countries have incurred must be reduced. The only options here are to reduce spending or raise revenue through taxes or a "juiced" economy. In real terms U.S. Republicans oppose serious corrections to any of those. We'll see what happens over the next four years.