Egyptian Government and the Protests

The New York Times: Reports that the Government of Egypt has offered its resignation to the Egyptian Military, after according to official figures 23 deaths another 1,500 protesters wounded since the fresh demonstrations. The Army Elite folks are not going to just give up their power, also the West has no interest in allowing the Muslim Brotherhood to gain power in Egypt, that would be a disaster in the long term for Egypt and the Middle East, no matter their PR, the Brotherhood is a threat to Israel and the peace deal between Egypt and Israel. This blog supports peaceful protest, but lets be honest here folks, Egypt was never going to have a Western Democracy, no matter how may Egyptians are on Facebook or Twitter, that’s not the real world. An Egyptian Democracy that benefits Egypt and the wider region would allow political, economic, social freedoms to the young, but the Army would prevent Egypt becoming an Islamic State, the US would pull all funding then, lets recall Egypt get a few billions each year from the US, and lot of that goes to the Army. In odd way the China model would be good for Egypt, freedoms on the economic front, but the Army protecting the security of the State and the region. This blog speaks truth to power but also to brave protesters, that is the real world folks, this is not the 1960s.

The Spanish Election and the EURO

Guardian: Reports how the delay in power transfer between the out going Socialist Government of Spain and the incoming Conservative Party is damaging Spain on the bond market. The New Government the article states will have to do “ ..further massive spending cuts or tax hikes.. ”. The Spanish bond is close enough to 7% mark for the EU to have backup plans to rescue Spain, thus far we have seen Governments fall due to the Euro in Ireland, Greece, Italy, in Greece we have a technocrat in charge, but the main Opposition Party is refusing to play ball, it wont sign an agreement with the EU to fallow through with its austerity package. In Italy the PM and the Cabinet is full of technocrats, the new PM has stated that he expects to last in till the planned election of 2013 as to follow through with his austerity package. It wont happens folks, former PM Silvio Berlusconi is making noises of a comeback, thus the Government of Greece and Italy are on political life support but they don’t know it, they don’t have years, months if they are lucky, to push through tough austerity packages, to deal with the mass protests, then for the Parliaments to pull the plug on them, the Greek people might want to be in the Euro, but if they wont pay the taxes something has to give, if the austerity package is either stalled or slowed down by the Greek system then the EU will have to throw Greece out of the Euro, Italy is 50/50 folks. Expect more ups and downs on the markets folks, will be interesting to see the Asian Markets after the failure of the Super Committee in the US.

UK and Iran

Telegraph Live: Reports that the Chancellor of the Exchequer George Osborne has announced today that ALL financial links between the UK and Iran have been cut, as Iran is a threat to the UK national security. This and harsh sanctions from the UN could keep Israel from bombing Iran folks, but they will need the support of Russia and China, one can postulate that Israel is keep a gun at the head of the international community, in essence you have one chance, make Iran STOP developing the bomb or Israel will go nuclear and make sure that Iran does not go nuclear. One wonders really how far Iran has gone with the development of the bomb folks, would it surprise anyone if they announced one day that they had the bomb.

The Markets and Western Debt

BBC News: Reports on the failure of the US Super Committee, and how the Eurozone Debt sent stock markets down. Folks all the Markets see are endless meetings between politicians who don’t risk a big plan and they will get thrown out of office, the Germans will never go for Euro Bonds and they would have to underwrite them, the German Supreme Court has stated it would have problems with such a move, also the European Central Bank, the common view is that the ECB should print money and thus pay off EU debts, the Germans recall the inflation crisis of Weimar Germany and the raise of Hitler, thus another No from the 4th Reich ( they are being pain folks ) the French risk losing their tripe AAA credit rating, the Greeks have internal problems with the Conservative Opposition refusing to sign agreements with the EU that would allow for eye watering cuts, the Italians have a technocrat Government that think it will be around in till 2013, no they wont, the political parties left or right wont allow some non elected theocrats to rob them of power. In the US its down to the 2012 Presidential and Congressional Elections, thus 9 months of a campaign folks. Buy gold folks, paper money just might become worthless, only joking but not to much folks.