The Balls Factor - Labour Party Conference

Guardian: Reports on the apology tour by the Labour’s Shadow Chancellor Ed Balls, but the articles notes the following, “ Yet there was one admission Labour will not make – that public spending was excessive ahead of the crash. ”. Thus the Labour Party under Ed Miliband does not get it, even the UK Treasury under Gordon Brown warned that the Labour Government had spent to much for very little in the public sector, and it also warned in a spending review that spending should only be in line of inflation. The then Chancellor Gordon Brown and his close aides, Ed Miliband and Ed Balls still supported spending billions that the UK didn’t have, thus the structural deficit that the UK Coalition Government has to deal with, Labour will only be taken seriously if it admits that the Blair and Brown years failed to spend wisely and didn’t keep money in the bank for a rainy day. As someone once noted to this blog, Labour always comes in with great hope but they always wreck the economy at the end of the day.

UK Stock Market and the Eurozone Crisis

Telegraph: Reports that FTSE - 100 ended the day UP, it was up by 0.45%. After last week this is good news folks, but it is all based on rumour, no actual paper plan has been produced, the recent plan for a Greek bailout has still not been passed by all Eurozone States. This blog is very interested who is going to pay the two trillion, or is that another debt for the system. Also if Greece writes off 50% of its debt it cant go to the market for money, thus more bailouts for Greece, so far they have been very slow with their austerity package, one has doubts that they will ever follow through with the plan, the Greek Government would like to get re-elected. The World economic system is not in the clear yet folks, lets see the details of the new plan for Greece.

The Banks and the Eurozone Crisis

BBC News: Reports that European Bank shares have gone up after reports of a plan to deal with the Greek crisis and from that a banking crisis. As posted yesterday, Greece will write off 50% of its debt and stay within the Euro, a two trillion Euro bailout well set up and the Banks with Greek debt will be covered. The question folks will this plan pass the nations that make up the Eurozone, the Coalition German Government is having problems with it own MPs, other nations want Greek Collateral before they give Greece more money. As noted at the time this is a German/French plan, it might make sense in economic terms, but does it pass the political test. The Markets have gone up based on rumour, one hell of way to run a Market. Lets see the details first folks, this just smells to this blog.

36% Approval for POTUS - Economist/YouGov.

The Hill: Reports a new shock poll on the job performance of President Obama, in a Economist/YouGov Poll has President Obama on 56% Disapproval, while 36% Approve of the Obama record. The good news for the Oval folks is that its not as bad as the poll numbers for Jimmy Carter at the same period, just worse that any other re-elected President. The political truth is folks that the Obama jobs plan and its tax hikes idea has not worked. The class warfare from the Oval has pushed voters further away from Obama. This blog has already called the 2012 election, Governor Perry will his bad TV debates is starting to look like a loser to Governor Romney, also the Republican voters want a candidate that can beat President Obama, Romney is polished in the TV debates, can stand his ground, also in way he has an asset, he has defend RomneyCare but has stated he will repeal ObamaCare, thus has shown he will stand up to the Tea Party but also that he will give what US voters what they want, simple, the axing of ObamaCare. In less something surprising happens folks, it will be Romney vs. Obama in 2012.

Greek Default and the EU

Guardian: Reports that the EU is expecting Greece to default on its debt, and that it is building a firewall around banks carrying Greek debt. As noted in the Telegraph it is expected that 50% of Greek debt will be written off, but that Greece will stay in the Euro. Thus in the short term Greece will be carried then it will default, thus all the austerity measures in Greece are bit pointless, also how can Greece stay in the Euro, it does not help Greece, the Government will not have control of its currency, if you’re a Greek politician and in Government you have to ask why are you carrying the political pain for six weeks when your in effect going to be dumped on, big time by the French and Germans. Also who has a few trillions to start this firewall, the Germans might even say NO that they should take all this debt, lets recall it’s a Coalition Government in Germany, they would like to get elected again in this Century. A lot of great words folks, but my gut is worried, and its not because of a few drinks, this plan sounds great on paper but the political reality to costly.

Tony Blair and Gaddafi Part Two

The Sunday Telegraph: Reports that former Labour Prime Minister Tony Blair had six secret meetings with Colonel Gaddafi in the three years since leaving 10 Downing Street. Lets be honest folks, if there had not been a revolution in Libya these secret meetings would have stayed secret, one has to ask what was discussed at these meetings, are there minutes of after meeting memos so that the public can judge these meetings. It should be noted that Channel 4 in the UK is running a programme on how Blair has made his money since leaving No. 10. This blog is calling for the a full and frank answers from the former PM, also should Blair stay as a Middle Peace Envoy, he is not going to be popular in Libya.

IMF and the Eurozone Crisis

BBC News: Reports that the IMF has stated that it does not have enough funds to deal with all the debt in the eurozone and banking system. As noted yesterday by the Telegraph the Germans and French are developing a plan to save the Euro and the banks that will cost trillions of Euros. Thus far no one has said who will give these trillions. Words are fine folks, but it takes action, and money, thus at its most basic we have TRILLIONS + EUROZONE = WHO PAYS. If it is just the German and French taxpayer it is not going to happen, if it is the seventeen nations of the Euro its not going to happen, if it Euro bonds underwritten by the Germans its not going to happen, any plan has to have the support of the voter folks, none of the plans would benefit any government, in fact they would fall. Interesting week ahead folks on the markets.