6% Over a Cliff = Italy and Spain

Guardian: Reports the following on the Eurozone crisis, “ Interest rates on Spanish and Italian bonds rose to well above 6%,….the beginning of the bailout process for Greece, Ireland and Portugal. ”. It could be this stark folks, the cost for Italy and Spain to secure their bonds could just be to much if they stay at the 6%, its simple folks, there is to much debt, not enough money coming in and the welfare state is growing due to the austerity packages followed by Italy and Spain, it’s a vicious game folks, the money markets demand that the Government cuts its debt, this means less Government spending, less growth, less jobs, thus more of a welfare bill. This is mess that has no easy answer, the only answer in the short term is to bailout out Italy and Spain before they take down the whole of Europe. Its depressing folks.

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.