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.

Governor Perry and the US Economic Policy

Telegraph: Reports on remarks by the Republican Presidential Candidate Governor Rick Perry that the Fed Chairman Ben Bernanke would be almost committing treason if the printed more Dollars to help the economy. On one level these comments are terrible, makes the Governor not look serious to the elite in the beltway, but then on the other hand its great politics, the Tea Party movement does not trust the money elite in Washington D.C and New York, also main street is not that keen of the beltway and its opinion. After having LBJ, and Bush 43 in the Oval the US voter is used to Texas politicians who are quite animated when it comes to the English language. Thus the elite should take a chill pill, the language its going to get worse on both sides, a year and half of the US Presidential Election folks.

Eurozone Crisis and Germany

BBC News: Reports on the surprise news that Germany economy has only grew by 0.1% for the first few months of 2011, only just better that the zero growth in France. The bankers of the EU, Germany and France have gotten the Greek flue, French Banks might need a bailout due to the Greek default, the German voter is getting tired of being thought as the easy money for the rest of the EU. It can be argued that German voters see the cliff better than their supposed leaders, thus a lack of spending by Germans. The debtor nations of the EU want a EU bond to be issued that would be supported by of course German money, but that is off the table, the German Government headed by Chancellor Merkel would like to be elected this Century. The austerity packages of the PIIGS it can be argued will cut growth, lower Government employment, push more people in to welfare, thus more debt, it’s a vicious game folks. The European Central Bank as stated on my tweet page, owns Italy, it has forced the Government to bring forward its austerity package, but even the ECB cant buy bad Italian debt forever, that goes for Spain too. Either ALL the EU Countries and that includes the UK puts some big money to bailout the PIIGS and reform the EU or some of these Counties will have to be sacrificed, its matter of debt folks, sooner or later there will just be to much debt, and all the EU will go down the toilet.

New Homes for the People of Israel

Guardian: Reports that the Israeli Government has give the green light for new Israeli homes to be built in the West Bank and East Jerusalem, in all nearly nineteen hundred homes. Israel has the right to use land that it won in combat, it has lost the blood of its sons and daughters to gain this land, thus by the rights of combat it is the land of Israel. Also the Oval will keep very quiet over the next year and half, Obama can not afford to lose the Jewish vote, thus the Middle East Peace Process is in recess for some time.

Iraq and Al - Qaeda

Telegraph: Reports that the bomb attacks in Iraq are being blamed on Al - Qaeda. Thus there are two options folks, Iran or Al Qaeda, or both of them working together against their perceived enemy the US. The Iraq Government has to get a new security deal with the US, one that keeps at least twenty five thousand US troops in Country to prevent Iran crossing the border once the US is out. It would be a major disaster for the Obama Presidency if Iraq was invaded by Iran, or its government become a puppet of Tehran. President Obama can not afford to give the Republicans the argument that Bush 43 won Iraq with his surge but that Obama lost it when he become President, it would recall the arguments from the late 1940s that the Democrats had lost China to the Communists. Thus Obama has to start to take an active interest in Iraq.

60+ Killed in Iraq

BBC News: Reports on a series of bomb explosions in Iraq today, it is estimated that over 60 people have been killed. One can postulate that these attacks have the hand of Iran at its core, the recent killing of scientists working on Iran’s nuclear programme have the fingerprints of Israel on them, although no proof, this blog would very surprised if the Mossad had not played some part, thus Tehran wants to cause havoc for the US before its planned departure of Iraq. It would suite Iran if the violence in Iraq forced the US to keep troops on Station, this would hurt the Obama Presidency, the American left thought Obama would take OUT all troops, but it can be postulated that US will have troops in Iraq well in 2012 if not 2013. If this is an Iran operation it is an attempt to show that although it cant hurt Israel, and would not dare, it can attack US interests, thus expect more attacks through 2011/12. One has to ask was the loss of 179 the UK’s Armed Forces Personnel worth it, thus far NO.