France and the Euro

Guardian Live - Euro: Reports on the rumours on a French downgrade, “ The feeling in the City is that France's AAA rating has roughly the same prospects as the average turkey, and is ripe for plucking. ”. As both the left wing Guardian and the right wing Telegraph are going with this story, one has to postulate that the downgrade will happen soon, as stated in previous post this will hit the French ability to raise money on the Markets, thus the ability of the EU to bailout the PIIGS will be hurt, who next folks, Germany? How much money can Germany give to the PIIGS and now much debt can it take on before its own credit rating starts to wobble, and this blog is serious about that folks.

The French AAA? - Euro Crisis

Telegraph Live - Euro: Reports on rumours from Twitter that France will lose its triple A rating, the French Government is in full spin mode in case this happens. This would be a disaster for the French President, it would make it harder for France to raise money on the markets, the French spin is that the same thing happened to the US, good try but one of the pillars of the Euro is France and its ability to fund the bailout package, if investors think that France just might in the future not be able to pay her debts then France is in trouble, the US is still an economic superpower, bowed but not on here knees, the French are the lapdogs of the Germans, nothing new there folks. The French left has made it clear it would have new talks on the new EU Treaty, thus the French President might very well lose next year, those EU fanatics, yes you Lib Dems, are you sure you want to tie yourself to that sinking boat.
　

PM Cameron and the IMF

Guardian Live - Euro: Reports that UK Coalition PM David Cameron has stated that the UK will not go beyond its agreed spending on the IMF. As the 12.51pm post notes the UK Parliament agreed to 40 billion for the IMF, the UK has already given 30 billion as a commitment, thus that leaves only another 10 billion left. There is pressure form EU for another 30 billion from the UK. The UK Labour Party opposed the last grant, even if PM Cameron wanted to give the money he would never get through the House of Commons, if another 80 Conservative MPs rebelled the motion would be defeated by the Opposition.

Between a ROCK and a CLIFF - Ireland

Telegraph: Reports that the Irish Government is worried by the prospect that a Financial Tax could hit Ireland if the UK is out of such a EU structure. After the fine words of the 26 at the EU Summit, NOW we see the problems, Ireland and others cant afford pro Europe at the expense of THEIR national interests. The City Tax is just one problem, how will the French Parliament react to the fact that Germany will have a VETO on their budget. That should their be economic problems they are in a economic straightjacket imposed by Germany. Lets see if this Treaty gets passed folks, miles to go folks.

UK Strong in EU - Germany

BBC News: Reports that the German Chancellor Angela Merkel has stated that the UK will be a strong partner in the EU. In other words PM Cameron don’t block us on using the EU institutions, such as the European Court, and more important don’t force us to use Sid’s Café for our meetings. The problem that the German Chancellor has is the fact that her new EU Treaty might hit the rocks never mind the UK, the French Opposition are opposed, the old Eastern block Countries didn’t give up Soviet control to be controlled by the EU. The Irish people going through tough austerity don’t want more control in Berlin, it was bad enough that their last budget was first shown to German MPs before those in Dublin. Thus this treaty might very hit its own Iceberg. The point is there might be no rescue ship.

Payroll Tax Cut and POTUS

White House: Statement by White House Press Secretary. The Oval is playing politics again with the Middle Class, the Senate Democrats want to fine the rich for being rich, nothing new, they are holding hostage the Middle Class, the Republican House has financed the Payroll tax by cuts, the Statement states the following, “ ..And it’s not a time to break last summer’s bipartisan agreement and hurt the middle class by cutting things like education, clean energy, and veterans’ programs without asking the wealthiest Americans to pay their fair share. This is a time to help the middle class and all those trying to reach it by extending a tax cut worth $1,000 for the average family. …They cannot go on vacation before agreeing to prevent a tax hike on 160 million Americans and extending unemployment insurance. That is simply inexcusable in this economy. ”. Thus the above has a attack on the rich, pulling on the heart strings, education, veterans etc, one wonder why the Oval didn’t have some sad music with the statement, its that crash folks. How does making the US another welfare state help the economy, go and ask the PIIGS of the EU, if they are happy. This is not subtle class warfare, just cheap Chicago politics, even the MadMen would think it was old hat, the ideas man would get the sack, but then Obama is no Don Draper.