Following yesterday’s announcement that Greek debt was downgraded to junk status, today Spain’s debt was downgraded as well. Spain is, in many ways the bellwether for Europe’s debt crisis. Spain has a much larger economy than Greece. So large, in fact, that it may be too big to bail out.
Fortunately, Spain’s debt is still less than 60% of GDP; however, the country is on a reckless fiscal path and the government shows no signs of doing anything about it.
As a result of the growing crisis, the Euro is getting hammered in the FOREX market, while the dollar is soaring. This is, in effect, an interest rate hike for US businesses that export to the Euro zone.
Naturally, this places downward pressure on US export sales at a time where the overall business climate is still weak. So, none of this is good news for the American economy, either.
If you have a friend who is a supporter of the present monstrosity called “health care reform” because they think Europeans are better served by their system than we are by ours and the Democrat’s solution will make us more like them, ask them to watch this 4 1/2 minute video.
By the way, pay particular attention to the rising costs of health care in Europe and, more importantly, the chart which shows costs to include cosmetic surgery, which is the only market based part of health care we have. Amazing how that works, no?
[HT: Maggie's Farm]
We touched on the fact that there are some tax protests popping up around the country in last night’s podcast.
William Jacobson says:
The beginning of a protest movement against Barack Obama’s redistributive policies is underway. Though still small, every movement starts somewhere. While called the “Tea Party” after the Boston Tea Party, this movement is similar to movements throughout history where the producers of society refuse to have their property and income confiscated.
We all agreed that at this particular moment the movement is mostly a creature of the right-wing. That’s not to say it will stay that way, but certainly it is partly outrage over the so-called stimulus bill and partly an opportunity to engage in a little payback for the last 8 years of the left’s shenanigans.
Will it gain supporters? Will it gain power? I frankly don’t know at this point. But as Debra Saunders points out, if you think it is bad here, in terms of the financial crisis, you ought to be in Europe.
And what is going on in Europe? Well if the UK is any indication, things may be heating up rather quickly there:
Police are preparing for a “summer of rage” as victims of the economic downturn take to the streets to demonstrate against financial institutions, the Guardian has learned.
Britain’s most senior police officer with responsibility for public order raised the spectre of a return of the riots of the 1980s, with people who have lost their jobs, homes or savings becoming “footsoldiers” in a wave of potentially violent mass protests.
Interestingly the Brits would be late-comers to the European protest movement:
In recent weeks Greek farmers have blocked roads over falling agricultural prices, a million workers in France joined demonstrations to demand greater protection for jobs and wages and Icelandic demonstrators have clashed with police in Reykjavik.
So, will the burgeoning tax-protest movement here take hold and grow?
If Europe is any indication (you know, the Europe that was supposed to be so much better off than we are according to some?), yes, it might. In fact, if, as promised, the situation here gets worse and worse, I think we can pretty much count on it.
Will it have an effect? Well that’s an excellent question.
I’ll ask one in return.
Have you seen the deficit?
Someone is going to have to pay for all of that.
Al Sharpton must sniff a payoff somehere. He’s protesting in front of Bernie Madoff’s place.
Bill Press pushes for a redefinition of “public interest” to include making terrestrial radio stations carry a format that fails everywhere it is tried to the detriment, naturally, of one that succeeds.
After years of pandering to them, John McCain makes the staggering discovery that Democrats are no more bi-partisan than the GOP.
The Taliban release a video of them cutting off a Polish engineer’s head. The Obama administration mulls a change in strategy which would have them essentially abandon the Karzai government in Afghanistan and negotiate with the Taliban. And, unsurprisingly, some on the left just want to know why we’re still there.
Larry Sabato, director of the University of Virginia’s Center for Politics says there’s a good reason the “stimulus” bill is so big: “It’s just irresistible,” he said. “Congress says, ‘This is a freight train.’ They have to jump on because there might not be another for years.”.
The U.N. agency for Palestinian refugees suspended aid to the Gaza Strip on Friday? Why? Because representatives of the Palestinian’s government were stealing relief supplies from the UN. Well, at least, unlike ours, the Palestinian government makes no bones about what they are.
Smartphone sales were up 68% while iPhone sales topped 101% in 2008. No recession there.
Bush is gone but the left still can’t let him go. Will Ferrell demonstrates his case of BDS in a classless Broadway show. Yeah, I know, everyone’s a critic.
So how’s Obama doing so far? Well let this Brit clue you in.
In the modern world, the Left, who claim to be the romantic rebels and lovers of liberty, have become the dogmatic spokesmen of remote power. The Right, who are derided as supporters of dictatorship and closet ‘fascists’, are the real revolutionaries and romantics.
Joltin’ Joe Biden previewed it in Germany yesterday:
As promised, Vice President Joe Biden reached out to the international community Saturday, saying the U.S. is open for talks with Iran and Russia to repair relations, and willing to work with allies to solve world problems.But in his first major foreign policy speech for the new administration, the Democrat also warned that the U.S. stands ready to take pre-emptive action against Tehran if it does not abandon its nuclear ambitions and support for terrorism.
Repair relations? Just words at the moment.
Pre-emptive action? I thought we quit doing that stuff. OK, pre-emptive action. Also known as maintenance of the status quo policy. “We want to repair relations but reserve the right to pre-emptively attack Iran”.
Good luck with that.
And while he said it is time to mend fences with Moscow, he said the U.S. continues “to develop missile defenses to counter a growing Iranian capability, provided the technology is proven and it is cost-effective.”
Continue to develop missile defenses? Status quo – but again, with the caveat “we want to mend fences”.
Good luck with that.
The article notes that Biden was “short on details”. No particular surprise there. But apparently the “tone” was just music to the diplomats ears.
“I think Vice President Biden came to Munich today in a spirit of partnership,” British Foreign Secretary David Miliband told AP Television News. “I think he set an ambitious agenda with big goals and high objectives, and he called and challenged us to work with him. I think that’s the right spirit.”
That hits me as diplo-speak for “he’s going to do things the way we want them done”. And, of course, that’s not leadership.
Understand too that diplomats are also going to give this a positive spin because they stand to gain from it. That’s why Russia said:
“The tonality was rather encouraging. It was really a serious call to restart U.S. foreign policy — including, clearly, Russian-American relations,” said Konstantin Kosachev, head of the international relations committee in Russia’s lower parliament house.
That’s diplo-speak for “we think we can roll these guys”.
What details Biden did give included the aforementioned continuation of the missile defense and this:
“It’s time to press the reset button and to revisit the many areas where we can and should be working together with Russia,” said Biden. Yet, he added that the U.S. will continue to have differences with Moscow, including opposition to its efforts to carve out independent states in Georgia.
Again, “just words” and status quo.
And to Europe, Biden said:
Biden, who also met privately with a number of world leaders, including top officials from Russia, France, and Germany, told allies that they will be expected to share the burdens of fighting extremists and bolstering weaker governments and poor nations.
“America will do more, that’s the good news,” said Biden. “But the bad news is America will ask for more from our partners.”
I’m not sure why asking more from our “partners” is “bad news” but it certainly reflects a continuation of the status quo.
On another topic, Biden told the leaders that the U.S. needs their help in taking the detainees now held at Guantanamo Bay, Cuba.
He repeated Obama’s vow that the U.S. will adhere to its values, not torture, and will close the detention center at Guantanamo that has spurred such criticism from European allies.
Of course we’ve since learned that the Obama administration has reserved the right to approve more intensive interrogation techniques and, of course, you don’t need Guantanamo if you continue give the CIA permission to use rendition as a tool to deal with terrorists.
But apparently, to this point, that hasn’t really penetrated the good will that Obama still enjoys among the Euro types. Once the new wears off and they’re actually pushed to contribute “more” they’ll probably “discover” the duplicity of Biden’s words.
Hope and change.