UK Coalition Government and New EU Treaty

Guardian: Reports that the UK Coalition PM David Cameron has stated that the main objective of UK interest will to protect the single market and to protect the financial sector in the UK. If the 17 States of the Euro do create a Treaty the UK will have to make sure that they cant backdoor a tax on the financial sector in the UK, don’t impose employment regulations that hurts the UK. The Conservative right wants a Referendum on any new Treaty, in most cases this blog would support such move, but this is not the time, should the Euro go down the toilet it will take the EU and more important the UK economy with it, thus battle this bush fire first, then deal with the EU. There will be more chance of battles folks. The French will needs us against the Germans, Paris in the long term wont want Berlin calling all the shots in the EU.

France and Germany = S&P

Telegraph: Reports that credit Agency S&P has warned France and Germany that they could lose their much valued AAA rating should the fail to agree a complete plan to solve the Eurozone Crisis. It can be argued folks that the idea that an agreement between either the full EU States or those 17 Countries that use the Euro can be reached by March is out there in the Twilight Zone, one can postulate that Ireland will need to have a Referendum, also it can be postulated that the States of the 17 might have a problem if it seen that Germany is running the economic show. That was one of the World War One aims of the Kaiser, how are the rest of the Eurozone Countries going to react with a German Gauleiter turns up and veto’s budgets passed by a Democratic Parliament. This might not be as easy as the Markets thinks folks.

Credit Rating and the Euro

BBC News: Reports that the Credit Agency Standard and Poor's ( S&P ) has placed Germany and France and 13 Euro Countries on a Credit Watch. At a big two meeting between France and Germany today the leaders decided an Agreement should be made for a tougher treaty either between the 27 States of the EU or the 17 Euro Countries. Lets see if these Eurozone Countries want the Germans to have the ability to NO to local Budget. One can postulate that even the French after Two World Wars might draw the line at having their Budget coming under the VETO power of Berlin. Also will the proud Greeks after fighting in WW2 and going through years of harsh austerity really want Berlin as their Masters. Its really is the 4th Economic Reich folks.

US vs. Iran

Telegraph: Reports that a US drone that was reported downed by Iran was in fact lost in Afghanistan, the Tehran Regime has threatened to retaliate. One can postulate that the drone was lost over Afghanistan, it either crashed in Iran or was shot down, as Iran faces a international backlash for the storming of the UK Embassy in Tehran the Tehran Regime is playing games, as there are internal divisions in Iran between the Supreme Leader and the President, it can be argued that the extreme Religious elite in Iran want to make Iran isolated and thus push for the bomb. They want to divert public anger form the Tehran Regime to the world community. It would be in the interest of the West not to play this game, in less Tehran does something stupid just say nothing.

Gingrich in Iowa - Poll

Guardian: Reports on a poll in the Des Moines Register, in the poll Gingrich leads by 25%, while his main challenger, Governor Romney is third on 16%. In the poll Ron Paul was second, but he is not in the real race folks, the Romney Campaign must be hoping that the former Speaker self explodes before the Iowa vote in early January, they must hope that Newt Gingrich says or does something that makes Romney the safe pair of hands that Republicans will vote for, not because they want to but because there is no other choice. If Gingrich does win Iowa the Romney Campaign must have a good showing in New Hampshire, after that the race goes South, in South Carolina the Gingrich Campaign is leading. It would be ironic folks if Romney was to lose the race at the last minute, this blog and others had thought that the Speaker in political terms was dead in the water due to disastrous start to his Campaign, but he has come back, so it could be the Gingrich year.

POTUS 51% Job Disapproval - Gallup

Gallup: Reports on its Daily Tracking poll on the Job Performance of POTUS, today President Obama has a 51% Disapproval, while 41% of Approve of the Obama record. Lets see if the fall in the unemployment rate helps the President over the next few days folks. It would be surprising if Oval didn’t get some credit for the fall from 9% to 8.6%. Of course when over three hundred thousand people just give up its not good news, thus they are not counted as looking for jobs. It will be interesting to see the Unemployment rate after the Christmas period, a lot of the jobs were in the service industry, thus will these jobs last beyond the seasonal period, this blog has its doubts. If there is spike back up to 9% or more people think the economy is turning then it could go up beyond that, as those searching for work are counted in the rate, this could be more trouble for the White House. Less than 10 months to go before November folks. Also the Iowa and NH votes, what time to be a political geek, so much fun.

Public Sector Unions and the UK Coalition Government

BBC News: Report that former Labour Cabinet Minister Lord Hutton has stated that due to the grim economic news there needs to be a urgent reform of public sector pensions. The UK Coalition Government should not budge on the deal if offered to the Trade Unions, all aspects of society are going to take a hit due to the recent statement by the Chancellor that that the UK will not get rid of the structural deficit by 2015, in fact it will go on in till 2017, that Unemployment will go up from 8.1% to 8.7% and that the Government will freeze public sector pay increase at 1% after 2012. The next few years are going to be hard folks, the Unions will just have to take the hit, the private sector just cant afford to fund the gold plated pensions of the public sector, the good days are over folks.