Money Grows on Trees

Or at least that's what graduates of journalism school seem to think. The Economist, a London based weekly newsmag, castigates "European leaders" (without naming them) for failing to raise the EU bailout fund to 1 trillion Euros to bail out Italy.
Sounds good, but not a word about where those Euros will come from. Italy's government is spending more than it takes in by way of taxes. They have been skating by and borrowing the money. The sucker banks are wising up and refusing to lend to Italy except at 6 percent interest, and going higher real soon now. When the loans dry up the Italians will be unable to roll their debt over and bond holders will loose money, perhaps all their money. This is a bad thing, but who wants to spend their good money to bail the Italians out?
The J-school grads who write for The Economist don't even recognize raising money as a difficulty. Brussels bureaucrats can wave their hands and the money will appear.
The real long term fix is to balance the Italian budget, so that taxes pay for spending. This may take both time and a big hammer. Like not being able to borrow any more money. J school grads don't write about this either.
We should pay attention because this will happen to us, unless we cut the big money sinks, medicare, medicaid, and social security.