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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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December17, 2012

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COMING ATTRACTIONS
BY Mark J. Grant

You thought it was tough; it is going to get tougher.  You thought that Europe would not affect America and that we lived in some sort of bubble over here; think again.  You thought that the liquidity provided by the world’s major central banks would carry us across the divide and intact; keep dreaming.  We are at the cross roads, at breakpoint, where solvency is no longer overcome by liquidity because the politics is dysfunctional and because after you get to “unlimited” and “uncapped” there is nowhere further to go.  We have arrived at that long dreaded moment where decisions will have to be made, will be forced to be made and the effects of the austerity measures in Europe slows down and stops the economies in various nations which then impacts the earnings of American companies in a significant manner.  Put succinctly; European austerity has arrived in the United States.

The IMF wants the ECB and/or the EU to write off part of their Greek debt, which has been refused by the ECB and Germany so that the hours tick away, no resolution is found and the cash in Athens dwindles.  If Greece actually defaults the shock will be systemic.  More than $500 billion in sovereign debt obligations, $90 billion in sovereign derivatives and more than $1.3 trillion in total debt and if the plug is actually pulled either by a refusal to fund or a refusal to accept the terms and conditions of funding then I believe the correct phrase for the reality that will ensue is “Pop Goes The Weasel.”

Spain is going nowhere and fast!  The truth here is that the Spanish are twisting in the wind trying to find a way, any way, any possible way so that they can get money from the EU without having their finances audited or verified.  The country is literally falling apart in the meantime with unemployment rising past 25% this morning while the talk and banter continues and while Germany, stuck in a Pandora’s Box of their own making, denies that Spain needs any help at all and that is a matter of “readjustment.”

Just as Greece is about to run out of money; Spain is not far behind.  In the end Spain will ask for the bailout because there will be no other choice and, a close examination of their finances will assure you; there is no other choice.  Their calculation of their regional debt problems and of their bank problems has all of the accuracy of firing a cannon at Bermuda and hitting some town in Latvia.  I have been repeating this for over a year now but the top is about to be blown off the barrel and so I repeat it again: “Just because you do not count it does not mean that it is not there.”  The actual, real debt to GDP ratio for Spain is over 200% when you count all of their liabilities and not just the ones that they wish to include.  Payment is now coming due.