US vs. France - Middle East

The New York Times: Reports that France has rebuked the US approach to the Palestinian State issue, calling more for a set timetable, as requested by the Palestinians. This is good news for the Oval folks, this will show to Jewish voters that President Obama is supporting Israel against the Arab supporting EU. On this issue the Oval is right, on the politics and policy, okay it does not have much choice, but who is to say that political choice is a good thing, politicians always want choices, gives them room to move, in this the Oval has no choice, in effect the 2012 election has began, thus President Obama cant move an inch from supporting Israel. The Democrats should use the speech by the French President as showing how Obama does stand up for Allies, in this case Israel. On the whole a good day for the Oval.

Greece and the Bailouts

Telegraph: Reports that thirty thousand Greek Civil Servants up from expected twenty thousand are to be suspended on half pay. Either Greece is serious or not, if Greece was serious it would not suspend thirty thousand civil servants, it would sack them with no pay, all those that have retired under 55 should lose their pensions and go back to work, these are not serious ideas for these tough times, Greece is playing games, either bite the bullet or default Greece, you have people under 55 who still get a pension, can this blog move to Greece, Athens has lost the plot.

Obama & Netanyahu and 2012

White House Transcript of Talks between President Obama and Israeli PM Netanyahu: The import line out of the Oval is the following “ As I just indicated, peace cannot be imposed on the parties. It’s going to have to be negotiated. One side’s actions in the United Nations will achieve neither statehood nor self-determination for the Palestinians. ” In other words VETO of Palestinian State. Out of the Israel the important line is, “ But you've also made it clear that the Palestinians deserve a state, but it’s a state that has to make that peace with Israel. And, therefore, their attempt to shortcut this process, not negotiate a peace -- that attempt to get membership -- state membership in the United Nations will not succeed. I think the Palestinians want to achieve a state through the international community, but they’re not prepared yet to give peace to Israel in return. … ”. In effect Obama wants the issue to go far far away, after losing the safe Democratic House Seat in New York the Oval can not afford to lose the Jewish base of the Democratic Party. Thus POTUS is returning to the usual support of Israel at what ever the cost, Israel could attack Iran tomorrow, and the Oval would be having a Party at the White House for the air crew, Obama in re-election terms is in that kind of hole folks. Politics is politics at the end of the day. 　

UK Debt - Coalition Government

Guardian: Reports that UK Government borrowing hit its highest for August at 15.9 Billion pounds. Folks only yesterday the IMF forecasted that the UK would economy would only grow at 1.1% down from 1.5%. The Eurozone crisis could lead to the Banks needing another bailout, if France and German Banks need bailouts this will place the debt on the taxpayers of France and Germany. Thus it can be argued that economic growth will be mild to zero within the EU, due to the need for tough austerity packages, the good days are over folks, get used to being cold.

IMF and Bank Bailouts for 2011

Telegraph Live: Reports that the IMF has estimated that the Eurozone Crisis could lead to another bank bailout in the range of three hundred billion Euros. Folks in £ terms that is around one hundred and fifty billion, the UK Governments deficit. If Zombie Greece does go to the wall the French and German Banks will need to be bailed out by the their Governments. Thus more debt lifted from the banks to the State, thus more taxes folks and austerity down the line, even for Germany. Also folks its an estimate, it could be a lot worse folks, what are the banks not telling us about their Greek debt, and if these banks are hit what effect will this have on banks in the UK and US.

More Cuts - Greece

BBC News: Reports that the Greek Government will extend its public spending cuts as to gain the next stage of the bailout form the EU/IMF/ECB. Folks the EU/IMF/ ECB have not been impressed with the cuts by the Greek Government over the past two years, what is going to change, will the announced cuts even actually happen, can the Greeks pay the new taxes, will they refuse to pay even if they have the money. The expected pay cuts in the public sector, immediate sacking of fifty thousand public sector workers, and another one hundred thousand sacking over five years will hit the Greek economy hard, people will be pushed on welfare, thus more Government spending, thus higher Greek Debt, it’s a nasty loop folks, one can postulate that Greece will crash and burn, it depends who they take with them when they crash.