Obama vs. Perry - On the Campaign Trail

The New York Times: Reports on the bus war between President Obama and Governor Perry of Texas, the article states the following on the Obama Strategy, “ ..a beleaguered president….vividly illustrated the contours of 2012 election. ”. No folks this is not the liberal NYT smelling the coffee, it’s a political trick, they bring Obama down a few notches then start to attack the Republican Candidates for President. Also it gives cover to the NYT, it will attempt to show should Obama be only a one term President that the paper didn’t get sucked down in his defeat. Thus expect some more negative stories folks on the Obama re-election Campaign then the bloated liberal NYT will come out in full attack mode next year against the Republican nominee. These liberals are devious folks. On the Obama re-election strategy not good so far, the latest Gallup Approval rating for Obama is 39%, not good folks. Never thought this blog would write this but POTUS should try the Carter Strategy, the Rose Garden Strategy, the Oval should be seen as a hive of activity, talks about growing the US economy, meetings for getting people back to work, you get the idea folks, good PR even if it means nothing.

Market Tax and the Eurozone Crisis

Guardian: Reports European Markets have not reacted well to the Franco - German plan for a tax on every time a share is sold or bought, the same plan would affect the currency market. The article notes at morning trading the FTSE -250 fell by 6%. The Markets should not worry, its not going to happen, there will be no common tax within the Eurozone as those Eurozone Countries would worry that those EU Counties outside the Euro would benefit tax wise, business would rush to these Countries and still stay within the EU. The Plan is political smoke during the August silly season, its get the press off the back of German and French leaders. The major problem is European DEBT, you can play political games but at the end of the day it is an illusion. Either Germany supports a Euro Bond and takes the bailout risk or the Euro is on its way OUT, its just a matter of time folks.

European Bank in Trouble = Eurozone Crisis

Telegraph: Reports that a European Bank had to loan five hundred million dollars from the European Central Bank because it could not get a loan from the market. One can postulate that it’s a major French Bank but one must not discount an Italian Bank, banks in France and Italy have major Greek debt on their books. As stated in the Daily Mail last week the French Government is on standby to bailout out their banks. One would not be surprised if the Dow Jones in the USA went lower today due to the lack of direction from France and Germany when it comes to Euro bonds and that a major European Bank is in trouble. Even the ECB has its limits.

The Eurozone Crisis & The Markets

BBC News: Reports that the plan announced yesterday by Germany and France for more Eurozone integration has failed to appease the Markets. This was a missed opportunity by France and Germany, their plan will take years to develop, also one can postulate that it will require a new referendum is some Eurozone Countries, there is a chance it would fail. If the German Government wants the Euro to survive it will have to back a Euro bond, this will place all debt of the Euro zone in to one debt pot, lower interest rates, but at a cost, the Germans will be the banker, can the German Government sell the idea to the German people, are the Germans getting tired of the constant bailouts. Also more integration means more regulation for the Eurozone Countries, this could have negative effect, as the UK is out of the Euro it could gain in economic terms, take business tax lower than the Euro, thus the plan might just be to late, few years ago it might have worked, now it can be argued 60/40% it wont work, time has moved on folks.