Emergency for Italy = Debt

Telegraph: Reports that Italian Government is to have emergency meetings with the EU to discuss the fact that Italy could be the next country to become the target of the bond markets. The politicians should know that August is a very bad month to go on holiday, disasters of late seem to happen when politicians take their eyes off the ball, thus time for our distinguished Masters to come home and deal with the next crisis for the Euro. This blog will postulate that Italy will ask for a temporary bailout of billions, its going to cost folks. Well if the UK has to bailout out Italy it should come at a cost, the return of some powers to the House of Commons, our rebate be secure and agreed in treaty, lets make sure Italy pays for any UK bailout.

Spain and Italy in the Spotlight = Debt Risk

After Greece (2) Ireland and Portugal, then Spain and Italy, then the US, now back to Spain and Italy = Debt.

BBC News: Reports that the Spanish PM Jose Luis Zapatero has had to cancel his holiday plans after the cost of Spanish borrowing went through the roof, it was joined by Italy. The contagion of Greece has happened folks, the EU in the not to distant future will have to bailout Spain and Italy, this will take trillions, all EU countries including the UK will have to get their wallets out, its going to hurt folks, the tax payers are not going to be happy, it either bailout Spain and Italy NOW or later and its will costs even more trillions, the bad times are not over folks, its going to take years and mass unemployment and the cutting of the welfare state in Europe. A lot of suffering before the light folks.

The End Game = Debt Ceiling RAISED

US Senate: Reports that the US Senate has passed the Debt Ceiling Act by 74 to 26 votes. The farce is over folks, but the fight is not, there will be more Congressional crisis to come under the Obama Presidency, you have a extreme left wing President and a right wing House, its called political gravity folks.

Debt Ceiling Passed = House

HofR: Reports that the Debt Ceiling Bill has passed the House of Representatives by 269 to 161 votes. Thus on to the US Senate then to the Oval for the signature of President Obama. The Tea Party won this folks, no tax hikes, deep cuts up front, and even bigger cuts if the Congress cant agree on more cuts by November. The political loser is President Obama, he still goes on about tax hikes, its not going to happen folks, the tea party movement would rather see the cuts in the welfare state. Thus 2012 will be tricky for President Obama, the left are fed up, and the right just want anybody else, you have to love democracy folks, one minute you’re the STAR, the next you’re an extra, hubris comes at a cost folks, and its about time Obama paid for his arrogance, being a one term President would really suit Obama, he would never understand, think Carter with charisma.

The US Left DUMP on OBAMA = Debt Ceiling Deal

The New York Times: The left wing Nobel winning Paul Krugman dumps on President Obama, the article states the following on the deal, “ Make no mistake about it, what we’re witnessing here is a catastrophe on multiple levels. ”. The US left is going up the wall with this deal folks, the Tea Party movements has won, no tax hikes, major cuts, and more cuts if the Congress does not cut a deal. One can postulate that President Obama could even face a challenge next year for the Democratic nomination, not that out there folks, the left has a lot to be upset about when it comes to Obama, from his Foreign policy to his surrender to the Republicans, its fun to watch when Obama's hubris meets political reality.

Syria Government vs. Rebels

BBC News: Reports on the crackdown by the Syrian Government on the citizens of the City of Hama. The West is full of hot wind folks, from the US to the UK there has been a critical reaction and then what, sanctions that wont work, no threat of military action, if the Syrians want freedom they will have to fight for it, don’t expect any support from the West, Libya has not been a great success, thus impotence is the answer from the West.

Debt Ceiling DEAL

Here is the take of President Obama on the debt ceiling deal, “ ..I want to announce that the leaders of both parties, in both chambers, have reached an agreement that will reduce the deficit and avoid default -- a default that would have had a devastating effect on our economy. The first part of this agreement will cut about $1 trillion in spending over the next 10 years -- cuts that both parties had agreed to early on in this process. …Now, I've said from the beginning that the ultimate solution to our deficit problem must be balanced. Despite what some Republicans have argued, I believe that we have to ask the wealthiest Americans and biggest corporations to pay their fair share by giving up tax breaks and special deductions. Despite what some in my own party have argued, I believe that we need to make some modest adjustments to programs like Medicare to ensure that they’re still around for future generations. That's why the second part of this agreement is so important. It establishes a bipartisan committee of Congress to report back by November with a proposal to further reduce the deficit, which will then be put before the entire Congress for an up or down vote. In this stage, everything will be on the table. To hold us all accountable for making these reforms, tough cuts that both parties would find objectionable would automatically go into effect if we don’t act. And over the next few months, I’ll continue to make a detailed case to these lawmakers about why I believe a balanced approach is necessary to finish the job. Now, is this the deal I would have preferred? No. I believe that we could have made the tough choices required -- on entitlement reform and tax reform -- right now, rather than through a special congressional committee process. But this compromise does make a serious down payment on the deficit reduction we need, and gives each party a strong incentive to get a balanced plan done before the end of the year. …We’re not done yet. I want to urge members of both parties to do the right thing and support this deal with your votes over the next few days. It will allow us to avoid default. It will allow us to pay our bills. It will allow us to start reducing our deficit in a responsible way. And it will allow us to turn to the very important business of doing everything we can to create jobs, boost wages, and grow this economy faster than it's currently growing. ”. Thus on one level this is a victory for the Oval, its get the debt ceiling off the agenda for 2012 but politically it’s a major defeat, the Republicans have got what they wanted, no tax hikes, major cuts. The Oval needs a RFK or a Nancy Reagan, Obama is still going on about tax hikes, its not going to happen, the Republicans would rather take cuts, this will drive the liberal base of the Democratic Party up the wall, its going to be a tough 2012 for President Obama.