Obama vs. Perry - On the Campaign Trail

The New York Times: Reports on the bus war between President Obama and Governor Perry of Texas, the article states the following on the Obama Strategy, “ ..a beleaguered president….vividly illustrated the contours of 2012 election. ”. No folks this is not the liberal NYT smelling the coffee, it’s a political trick, they bring Obama down a few notches then start to attack the Republican Candidates for President. Also it gives cover to the NYT, it will attempt to show should Obama be only a one term President that the paper didn’t get sucked down in his defeat. Thus expect some more negative stories folks on the Obama re-election Campaign then the bloated liberal NYT will come out in full attack mode next year against the Republican nominee. These liberals are devious folks. On the Obama re-election strategy not good so far, the latest Gallup Approval rating for Obama is 39%, not good folks. Never thought this blog would write this but POTUS should try the Carter Strategy, the Rose Garden Strategy, the Oval should be seen as a hive of activity, talks about growing the US economy, meetings for getting people back to work, you get the idea folks, good PR even if it means nothing.

Market Tax and the Eurozone Crisis

Guardian: Reports European Markets have not reacted well to the Franco - German plan for a tax on every time a share is sold or bought, the same plan would affect the currency market. The article notes at morning trading the FTSE -250 fell by 6%. The Markets should not worry, its not going to happen, there will be no common tax within the Eurozone as those Eurozone Countries would worry that those EU Counties outside the Euro would benefit tax wise, business would rush to these Countries and still stay within the EU. The Plan is political smoke during the August silly season, its get the press off the back of German and French leaders. The major problem is European DEBT, you can play political games but at the end of the day it is an illusion. Either Germany supports a Euro Bond and takes the bailout risk or the Euro is on its way OUT, its just a matter of time folks.

European Bank in Trouble = Eurozone Crisis

Telegraph: Reports that a European Bank had to loan five hundred million dollars from the European Central Bank because it could not get a loan from the market. One can postulate that it’s a major French Bank but one must not discount an Italian Bank, banks in France and Italy have major Greek debt on their books. As stated in the Daily Mail last week the French Government is on standby to bailout out their banks. One would not be surprised if the Dow Jones in the USA went lower today due to the lack of direction from France and Germany when it comes to Euro bonds and that a major European Bank is in trouble. Even the ECB has its limits.

The Eurozone Crisis & The Markets

BBC News: Reports that the plan announced yesterday by Germany and France for more Eurozone integration has failed to appease the Markets. This was a missed opportunity by France and Germany, their plan will take years to develop, also one can postulate that it will require a new referendum is some Eurozone Countries, there is a chance it would fail. If the German Government wants the Euro to survive it will have to back a Euro bond, this will place all debt of the Euro zone in to one debt pot, lower interest rates, but at a cost, the Germans will be the banker, can the German Government sell the idea to the German people, are the Germans getting tired of the constant bailouts. Also more integration means more regulation for the Eurozone Countries, this could have negative effect, as the UK is out of the Euro it could gain in economic terms, take business tax lower than the Euro, thus the plan might just be to late, few years ago it might have worked, now it can be argued 60/40% it wont work, time has moved on folks.

Governor Perry and the US Economic Policy

Telegraph: Reports on remarks by the Republican Presidential Candidate Governor Rick Perry that the Fed Chairman Ben Bernanke would be almost committing treason if the printed more Dollars to help the economy. On one level these comments are terrible, makes the Governor not look serious to the elite in the beltway, but then on the other hand its great politics, the Tea Party movement does not trust the money elite in Washington D.C and New York, also main street is not that keen of the beltway and its opinion. After having LBJ, and Bush 43 in the Oval the US voter is used to Texas politicians who are quite animated when it comes to the English language. Thus the elite should take a chill pill, the language its going to get worse on both sides, a year and half of the US Presidential Election folks.

Eurozone Crisis and Germany

BBC News: Reports on the surprise news that Germany economy has only grew by 0.1% for the first few months of 2011, only just better that the zero growth in France. The bankers of the EU, Germany and France have gotten the Greek flue, French Banks might need a bailout due to the Greek default, the German voter is getting tired of being thought as the easy money for the rest of the EU. It can be argued that German voters see the cliff better than their supposed leaders, thus a lack of spending by Germans. The debtor nations of the EU want a EU bond to be issued that would be supported by of course German money, but that is off the table, the German Government headed by Chancellor Merkel would like to be elected this Century. The austerity packages of the PIIGS it can be argued will cut growth, lower Government employment, push more people in to welfare, thus more debt, it’s a vicious game folks. The European Central Bank as stated on my tweet page, owns Italy, it has forced the Government to bring forward its austerity package, but even the ECB cant buy bad Italian debt forever, that goes for Spain too. Either ALL the EU Countries and that includes the UK puts some big money to bailout the PIIGS and reform the EU or some of these Counties will have to be sacrificed, its matter of debt folks, sooner or later there will just be to much debt, and all the EU will go down the toilet.

New Homes for the People of Israel

Guardian: Reports that the Israeli Government has give the green light for new Israeli homes to be built in the West Bank and East Jerusalem, in all nearly nineteen hundred homes. Israel has the right to use land that it won in combat, it has lost the blood of its sons and daughters to gain this land, thus by the rights of combat it is the land of Israel. Also the Oval will keep very quiet over the next year and half, Obama can not afford to lose the Jewish vote, thus the Middle East Peace Process is in recess for some time.