North Korea THREAT to South Korea

Guardian: Reports that North Korea has threatened South Korea with military action should it carry on with its plan for a military drill on the disputed border between the two countries. Should North Korea take action then the South has a perfect right to defend itself, if attacked South Korea should hit back hard, not over the top but a warning to the North, China should make clear to its ally the North that it can NEVER use its nuclear arsenal or its on its own. Lets hope China has some influence over North Korea and is using that influence, a nuclear exchange between North Korea and the US is not in the interest of China at any time. One of the issues that could really sink Obama is North Korea, the worry is that North will see President Obama as weak and take military action, with the US in Afghanistan and Iraq the US would find it very hard to fight a third War.

Ireland Default ?

Telegraph: Reports on the massive downgrade of Ireland’s credit worthiness by Moodys a Credit Agency and the negative effects on Spain and Portugal. Lets get real folks, either Spain or Portugal will default next year, the interest charged by the EU/IMF makes sure the Irish economy will be in the toilet for years, thus mass emigration to the UK and other EU countries. If Spain, Ireland and Portugal default then its over for the Euro, the EU can not afford to bailout Spain, a default Spain would wreck the economies of Western Europe, but the cost of nearly half trillion to bail out Spain would be to much for the German voter and th UK voter would take to the streets in the cold to demonstrate, so would this blog. The bond market should chop Spain, Ireland and Portugal NOW, lets start the recovery with the pain, and there will be pain folks, but then the economic structure would be clean of the known and hidden debts of the EU countries and banks. The more the EU tries to hide this debt the more the cost will be in the future, lets have the pain NOW, a mass unemployment, a cut in the welfare state, less Government not more, then the Western Economy can get out of this mess, otherwise when the fall does come it will be hard and brutal, and lets recall the Great Depression came to and end with World War Two, the West can not afford a World War Three.

The Passing of the Obama/Bush 43 Tax Cuts

The House of Representatives: The US House has passed the Obama/Bush 43 tax cuts by 277 to 148. This is a good news day for the Obama White House, it just might be the day that President Obama got re-elected, depends how he plays it from here, if he moves to the centre even centre right and nicks a few Republican ideas he can do a Bill Clinton of 1996. Although no doubt that Obama has a fine mind, very much like Jimmy Carter does he have the political mind of a Bill Clinton, will he know when to fight and when to give way, will he go down to the mat over ObamaCare, even if the US Courts at the end of the day declare that ObamaCare is illegal. From January its not what Republicans do that will decide if Obama gets re-elected its what the Oval does, Bill Clinton or Jimmy Carter, that is the choice for POTUS.