The BACK UP - Banks and the Eurozone

The New York Times: Reports that Banks are creating back up plans should States leave the Euro. Well folks that is a bright idea, lets face it folks Greece has to be the top contender for the chop, followed by Italy and Spain. The Euro contagion is biting at Germany and France, the bond yields are ticking up, also as stated in previous post Germany could only sell 60% of its bonds last week, if Germany is staring to have problems how long before Italy and Spain are frozen out of the market. The tough eye watering cuts needed to save the Euro will not be taken easily by the populations of the Euro, they might want to stay in the Euro but not at the level of austerity it will take, sooner or later, and sooner in this blog view a major politician will say NO to the Euro. This blog is waiting folks.

Coalition Government and the Banks

Guardian: Reports that the Coalition Chancellor George Osborne will raise taxes on the banks due to negative economic conditions, the article states the following, “ ..accept sharply downgraded growth forecasts, big increases in borrowing and a prediction that it cannot meet its plan to eliminate the current structural deficit.. ”. The left wing Guardian will love this of milking the banks folks, but it’s a PR sideshow, the structural deficit is worse than the Coalition PM David Cameron thought it was, also the Eurozone crisis is having a negative effect on the UK economy. If you push the bankers to far they will move, in this Global world all they need is a decent broadband service, they can operate anywhere, you cant punish for getting rich, that is human nature, also this will sound harsh, but you simply might accept a lost generation of young unemployed people, this is the real world folks, people get hurt in a recession or depression, the good days are well and truly over, the effects are not like the Great Depression, no long soup kitchens, but the idea that the welfare state is there from your birth to death has to be reformed, it cant work, in fact is should not work, the point of the great NHS is that people who would have died live longer, thus either you hike TAXES through the roof or you means test care, does someone smoke, drink, are they obese, do they bother to look after themselves, are they on drugs, etc, this will sound uncaring, in way it is, the blog is tired of the expectations that the welfare state is always going to be there, it wont, nothing last forever folks, that is the bloody real world, so those occupy crowd, get a wash, get a hair cut, get job, any job, not the one you expected, but the ones that are there, in many places there is no employment, the North of England, North Wales, even around Cardiff. Those out of work have real reason to be annoyed, not those in the heart of the Capital, who can afford to go home at the end of the night to feed the cat! Lets start by cutting their benefit and tour of duty in Afghanistan.
　
　

Coalition Government and Youth Unemployment

Telegraph: Reports that the Liberal Democrat Deputy PM Nick Clegg is pushing for a freeze on tax credits to working families as to pay for a one billion youth unemployment plan. If you think about it folks its very right wing idea, why should working families get any tax credits, its interesting that there is resistance from the Conservative side to this idea. If the Liberal Democrats are pushing this policy the Conservatives have to make sure that the Liberal Democrats are up front in announcing this policy. One can argue if one member of family is earning more that thirty thousand year as an example they should not get any tax credits or vastly reduced, this blog is not supporting this idea, as it wants to see the details. The problem is that families expect tax credits as a right, not something that is granted based on need, lets see how the polls react this news. If Nick Clegg is pushing this then there is no chance Labour would ever form a Coalition Government with him, they will be shouting the House of Commons down if this is the policy.

Belgium DOWNGRADED - Eurozone

BBC News: Reports that the credit agency Standard & Poor's ( S&P) had downgraded the credit rating of Belgium from AA+ to AA. As noted in previous post folks the yields for Belgium bonds have been growing, also the last time this blog looked there is no actual government in Belgium, on the whole does not seemed to have harmed the good but boring people of Belgium ( yes they still didn’t give us ammo for the 1st Gulf War ). The Euro crisis is like watching a slow train wreck folks, as of Monday it will cost more for Belgium to sell its bonds, after the disaster of the German bonds, one has to ask when are the politicians going to wake up, at this rate the EU elite are going to take the Euro and the UK over a cliff, it will be to late when we hit bottom folks.

Gingrich the MAN ? - Republican Race

RCP: Reports on its average of the polls for the Republican race, as of now former Speaker of the House Newt Gingrich leads the pack, here is today’s snapshot of the race, “ Gingrich 23.2%, Romney 21% and Cain 18.2% ”. Lets be honest here folks, the others in the race can be discounted, Perry is a busted flush, first impressions count, and his bad debate performances and his support for allowing illegal immigrants to go to University has not played well with the Republican race. Thus we come to the two man race between Gingrich and Romney, the Cain Campaign has never really come back from the sexual allegations against, not fair but that is politics folks. It can be argued that Governor Romney has to be careful, he has allowed his challengers to self explode on the campaign trail, but Gingrich is different, he had awful start but has come back, plus his personal baggage is well known to the press and to the voters. Romney has to take Gingrich on, he has started this with his attack on the Gingrich appeal for a humane approach to immigration, this attack might work well with the base, on the other hand the base wants someone who can win, they might think Gingrich taking on the base might work well in the General Election, thus give him a pass on this policy. The Speaker has to careful, he as come across as the most intelligent man in the room, but in this modern election cycle you have to be brief and to the point, he would defeat Obama in debates, but he as to get there first, so it could be either Gingrich or Romney folks, six weeks to go before Iowa.

Obama and the Polls

RCP: Reports on its average of the job performance polls for President Obama, today POTUS has a 43.4% Approval rating, while 49.9% Disapprove of the Obama record. Thus next year is going to be tough for the Chicago Re-Elect Committee folks, the economy is still in a hole, the unemployment rate hovers at around 9%, the US has a debt of 15 trillion, the crisis of the Eurozone could send Europe and the US in to recession or depression. On the international front there is the looming crisis of Iran, Syria could have a full scale civil war, Afghanistan is on going, plus there is always the risk of major terrorist attack. The Obama Oval faces its major victory on the Hill, ObamaCare going before the US Supreme Court, could go either way folks. Thus expect the Windy Cit to go nasty next year folks, that is Chicago politics.

The White House on Egypt

The White House: A Press release by the White House Press Secretary on the crisis in Egypt. The White States the following on the crisis, “ The United States strongly believes that the new Egyptian government must be empowered with real authority immediately. We believe that Egypt’s transition to democracy must continue, with elections proceeding expeditiously, and all necessary measures taken to ensure security and prevent intimidation. Most importantly, we believe that the full transfer of power to a civilian government must take place in a just and inclusive manner that responds to the legitimate aspirations of the Egyptian people, as soon as possible. Egypt has overcome challenges before and will do so again. The United States will continue to stand with the Egyptian people as they build a democracy worthy of Egypt’s great history. ”. What is interesting folks is the fact that the Obama Oval does not make any threats as via the US financial support for the Egyptian Army. If the Oval was serious it would cut off support, but what’s important to the Oval is the fact that Egypt should keep its peace deal with Israel. The Obama Oval does not need this distraction, the crisis with Iran is developing. The crisis itself is developing, the Obama Administration reached out a hand to Iran at the start of the Obama Administration, Tehran told them to get lost, the UN has now stated that the Tehran Regime is developing the bomb, the UK and the US have placed tough sanctions on Tehran, keeping them out of the world banking system. The CIA, MI6 and the Israel’s Mossad are using covert methods to sabotage the nuclear facilities of the Tehran Regime, thus the Oval can not afford for a tense relationship to develop between Egypt and Israel. The Oval needs the Army of Egypt to keep control, can not afford for the Muslim Brotherhood to take charge of Egypt.