The Debt Ceiling Plans

Fox News: Reports on the conflicting plans between Democrats and Republicans, on the Democratic side there would be two trillion in cuts and no tax hikes, thus taking the issue off the table in 2012, on the Republican side its two stages, cuts of one trillion but only taking the issue off the table for this year. Folks this down to politics, the Obama Chicago re-election committee knows that if there votes next year to raise the debt ceiling its over for President Obama, the Republicans are also playing a game, they want to see Obama ask during an election year for the debt ceiling to be raised, it would mean political oblivion for Obama. It can be argued that the Republicans have never had a stronger hand, they should pass a one trillion cuts plan and raise the debt ceiling and leaven town, force the Democrats to kill the idea and then allow the US to go in default. The US voter has had it with Washington spending, the welfare structure of the US will drive the US the way of Rome and the British Empire, it will go broke, and it will be a lot sooner than expected, then China will be the new economic super power, God help Taiwan then, China could move in and the US would be to broke to react, that was the fate of the UK after the end of World War Two, we had to ask the US to take over our Imperial responsibilities. The Liberal welfare state of the US was good idea folks, but we are know in the 21 Century, the US has a ageing population and a narrow work force, taxes raised don’t match spending. Also the US is still in Afghanistan and Iraq, and lets not forget Libya, another Congressional problem for POTUS. It can be argued we are seeing the end of the informal American Empire, and its decline was its own fault, it didn’t learn the lessons of history, it forgot about the mother country, YES that the UK folks. All Empires end folks, its how they end that matters, to have gone broke is not a good way for the US to be recalled through the ages.

Debt Ceiling DEAL by Monday ?

The Hill: Reports that Speaker of the US House of Representatives, Speaker Boehner is expected to have a plan to show to his Republican colleagues by Monday and a vote by Wednesday. The plan calls for cuts and a equal raise in the debt ceiling. As long as there is no tax hikes this is a good plan, force the Democratic controlled Senate and the Oval to veto plan, the Speaker should announced after the vote on Wednesday that the House is going in to recess, thus they are not passing anything else, in other words leave the Democrats with no choice, either pass the House bill or allow the US to go in to default. Its Chicago politics all the way folks.

Debt Ceiling Crisis

Telegraph: Reports on comments made by Bill Daley, President Obama’s Chief of Staff, Mr Daley stated that the money markets and the US voter faced stressful days ahead. At the end of the day folks the US cant just add more debt, at present the US debt stands at fourteen trillion, the Republican House should force the Oval to make heavy cuts in the US welfare system, while not hiking taxes, any deal between the Republican and the Democrats should not have any tax hikes, for the rich to the middle class. The Republicans have to keep their nerve and smoke out the real Obama, does Obama want to really make a major deal with cuts or does he want to pander to the liberal base of the Democratic Party, this deal will define Obama.

Huhne Saga Again!

Daily Mail: Reports that the Energy Secretary Chris Huhne and his soon to be ex wife Vicky Pryce have been interviewed again by the Police over the allegation that the Secretary of State transferred his driving penalty points over to his wife. The Police either have to charge Chris Huhne and his soon to be ex wife or drop the charges, how difficult can this case really be, one gets the feeling the Police are trying to game out the political consequences of either an arrest or dropping the chargers. Get a move on PC Plod.

CAUTION over EU DEAL = Greece

Guardian: Reports on concern in the money markets that the new EU deal will not be enough to save Greece and the Euro. As this blog stated when the deal was announced Greece is in default, the losses to private investors by the deal means that all the Credit Agencies should declare that Greece is in default. The deal itself will allow politicians in Europe to go on holiday in August but then we still have the fact that Greece will need further bailouts, the austerity packages demanded by the EU and the IMF will make it hard for Greece to grow its economy. The State sell off its assets is taking time, the people of Greece feel they have been shafted to save the Euro, then we have the major debts of Italy and Spain, will the Parliaments of the various Euro countries really put their hands in their pockets to protect Italy and Spain in the long term, the tax payers in these countries will one say NO. The EU has not dealt with the main problem folks, a welfare state that is to costly, a debt mountain that will make the Euro the new Weimar Republic, you can only change the rules so many times folks before the currency becomes worthless. Expect more meetings folks, these politicians will take the EU over the cliff at the end of the day.

Obama and Boehner new TALKS

Telegraph: Reports that President Obama and Speaker Boehner are to have further talks this afternoon to discuss the US debt Ceiling. Folks the Republicans should play hard ball, the Chicago way, it’s the only thing that Obama understands, give him half a trillion in cuts to US Government spending, make that cut the level in the raising of the US debt ceiling and then just leave the building and go in to recess, if the US Senate and the Oval wants to take the US in to default let them, sometimes in politics you just do the right thing and let the political costs land, time to show POTUS that elections have consequences, that was the point of 2010. Even if the US defaults it will not be the end of the world, the US Government will have plenty of money to pay its welfare state, if no money goes out it will be because POTUS is playing games, show Obama for what he is , a Chicago politician.

US Debt Ceiling TALKS Breakdown

BBC News: Reports that Republican House Speaker John Boehner has walked out on debt talks with President Obama after POTUS demanded tax hikes as part of any deal on the US debt ceiling. The Republicans on this matter should pass a limited cut packages, take the debt ceiling up in till mid way though next year and then go in to recess, then it will be up to Obama to either sign the bill or the US will go in to default. As noted in my last post on this subject the devil is in the details when it comes to Obama, it seems at the last minute Obama tried to pull a fast one to keep his liberal base happy, well if Obama wants to play those kind of games with the debt ceiling then the Republicans should just say NO and do the above and leave town.