Debt Ceiling:- We are here, this is now!!!

For a long time we knew this was coming. Sometime, somewhere the Administration was not going to be able to pass on their problems to the next Administration.




We are here, this is now. I thought that Obama was going to be able to slide this through until his second term but his promise breaking deficits have brought forward the day of reckoning.



Uncle Sam has great need of sobering up on deficit. I understood from Presidential Election promises that this was going to occur to some extent. Like anything the longer it was left left, the worse it got. the core problems of the subprime were also washed over.



He is now trying to strongarm debt ceiling increase without a solution to cutting deficit. What vague concessions are for the next Administration and with a history of saying one thing and doing another his sale is not being bought.



What is the alternative? Vote in a higher ceiling with higher spending that will come in it’s wake? If the spending were to grow companies that would be considered but stimulus spending has been socially directed. In a couple of years time Uncle Sam will be facing a similar choice – with more bitter pills.



We are facing a rough ride now or later.

Greece and Other Porkers

Greece and Other Porkers




These nations are tied, by their own volition, to the Euro. They joined the club of generally socialistic minded nations.



All European nations have had their crisis, some have acknowledged the problems and bulldozed reforms and implementation of cuts.



Look at those nations in the EU that have pulled through and one can see that they were over the top with social spending but also had considerable production going. The welfare is abused to an extent but not horrendously. Even with reforms there too many people freeloading.



Reflect on the other countries. Greece. Wow they managed to stumble to a first bailout. Greece had a ghastly history of abuse and ease of living. Its production is way below par. They tightened up pension ages etc and the socialists/communists went ballistic with riots, blaming banks and everyone but themselves. No one can live on borrowings for ever, the bill will come and it did.



The first line of reforms got them a bail out. However the riots that arose from those reforms shows that the people are not serious about their part in saving Greece. They seriously have compromised tourism and major income streams. Now they are trying to attain further bailout with nominal real change and the weight of the issue is the damage of them defaulting on other nations and institutions.



So with several other porkers following Greece, what can be done. There are three options, keep bailing them out, let them reform properly or just drop them in their own shit. Unfortunately the second option won’t happen unless they want it to so it is probably cheaper to drop them in their own mess and see how they can clean up. Their billions owed is not going to go away and piling on more debt will drag others down later.

Back and reflecting on the Current Debt Crisis.

Whew, back to doing some writing after some time. Take a look back at what has passed since my last works.




Wow, they have come to pass or are on the way there. Obama is still there, still repeating same mistakes, trying to throw more money at the problem. Until the holes in the economy are plugged they are going to continue haemoraging money to non American enterprises instead of boosting the economy.



Throwing money at welfare and unions also is not stimulation, well not much. Placing expenditure in the manufacturing sectors is. Helping people with their mortgage is sweet, but if they are not earning all you do is buy them time. If home owners don’t get a job they are going to be homeless. Like drinking too much on a Friday evening you end up with a hangover. The banks have been fed a few extra months, the national debt has grown as the govt effectively takes over portions of people’s individual debt. And the problem is still there, like a hangover.



Now Obama is fighting tooth and nail so that he can create more debt by taking up people’s debt.