In the Spotlight = Italy and Greece

Telegraph: Reports that the cost for Italy and Spain to borrow on the money markets has almost reached default levels. As the article notes the markets are spooked by the fact that Germany wont confirm the agreed bailout plan in till after the Parliamentary recess, also that Greece does not have an automatic banker in Germany. Lets gets to the point folks, Italy and Spain are just within a inch of going over the cliff, if you don’t deal with the major issue of the debt within these countries then your playing games that will lead to disaster. The EU has to gulp and take over these debts, these means ALL the countries getting their wallet out, even the UK. Also the PIG countries have to get out of the Euro and return to their natural currency, these would mean major default folks, this would cost the EU, as the EU would have bailout these countries in the long term, the very long term folks. Otherwise folks we are heading for another Great Depression 11, while EU fiddles with its PR.

The Reid Plan = US Debt Ceiling CRISIS

The Hill: Reports that the Congressional Budget Office, the final judge on the various Congressional plans, has found the Senator Reid’s plan wanting when it comes to cuts. Thus another draft will be needed by Democrats. That’s the problem when you have politicians writing bills with their running shoes on folks, the big idea does not match reality, as with the Republican Plan the cuts announced didn’t match the headlines and thus both the Boehner and Reid plans will have a hard time getting through the their Chambers. At the end of the day the Oval might have to take the political backlash and increase the debt ceiling under the authority of POTUS. The US voter, the Courts will be up in arms, the Congress would fall in to foul political warfare for the next year and half, but that might be the only option folks. It can be postulated that the Houses and Senate might pass a 60 day extension every sixty days, that would really drive Obama up the wall, but he would have no choice but to sign on, otherwise the US goes in to default. Well POTUS wanted the job!

The House Republican Plan = US Debt Ceiling CRISIS

Fox News: Reports that plan by Republican House Speaker John Boehner has had to be rewritten as it was found that it didn’t cuts as much as expected, thus Tea Party Republicans are demanding real major cuts. Thus the expected ceiling vote will be on Thursday. Folks the Republicans have a great chance, they have to go for real major cuts in the welfare state, also they have to call the Obama bluff, the new plan should have two votes, one to get the Government up to the end of 2011 and then half way through 2012. No matter what the Republicans have to keep together, any weakness and the Oval and Senate Democrats will try to push through their tax hikes, this is a real moment of history folks, the Republicans have to win one for the Gipper, smaller government and no tax hikes.

Serious BLOW to the World Economy = IMF

Guardian: Reports that the IMF has warned the US that if does not raise its debt ceiling it could have major negative effect on the world economy. Folks lets get it straight, if the Debt Ceiling is not raised folks the US will still be able to pay its debts, send out welfare checks and the Wars in Iraq, Afghanistan Libya will not just stop. The US tax payer does not get a holiday, the tax revenue will still come in, just that Obama will have to be better spender. In short term a default is not a problem, its only a political problem, the world will not end if the debt ceiling is not raised folks. The Oval should be ashamed of itself and its scare stories that granny will not get her welfare cheque. Typical Chicago politics folks.

Shadow Boxing and the Debt Ceiling Crisis

Telegraph: Reports that the US will not fail to pass a debt ceiling raise due to the fact that President Obama by his own authority could raise ceiling independent of Congress. This is true folks, but then the House of Representatives would Impeach Obama and he would lose the 2012 Presidential Election. The Oval needs the Republicans to be on board for any deal, if Obama tries to use the law to break the Congressional deadlock then Obama Agenda would be DEAD on the Hill, Obama would not get a dollar out of them to run the White House, never mind Air Force One. Thus the Republicans should use their power to pass a limited ceiling raise, a six month extension, massive cuts, and then get a second vote in 2012. As they say in Chicago, just win.

Political Games and the Debt Crisis

BBC News: Reports how the Democrats and Republicans are throwing political bricks at each over the debt ceiling crisis. Folks the Tea Party Republicans wont allow Speaker Boehner to cut a deal with the Oval that raises taxes and does not have major spending cuts, the Democrats don’t want to cut the welfare state, they want to raise taxes, the Oval does not want a 2nd debt ceiling before the Presidential election and Republicans want that as to finish off Obama. This just could be a perfect storm that leads to default folks, odder things have happened folks.