Posts Tagged ‘Washington’

European Union Headed For Collapse?

Monday, October 24th, 2011

Beginning of the End?

In the UK’s Parliament, David Cameron is trying to stave off a revolt of the conservative party, as at least 60 members are aboard with the idea of putting up a referendum on leaving the EU.  As a way to head them off, Cameron is hoping to exact some EU treaty re-writes that will return some autonomy to the UK in the matters of social laws and employment.  At the moment, he doesn’t seem to be making any headway, and a revolt against his proposal seems likely.  At the same time, French President Nicolas Sarkozy has told Cameron that he’s sick of the UK telling the rest of the EU what to do, since the British “hate the Euro.”  If you haven’t figured out what’s at the root of all of this, let me help to explain:  The EU is on the brink of complete and utter destruction, and the Eurozone is likely to fails, since neither Greece(immediately) nor Italy(just over the horizon) seem likely to stave off default on their sovereign debt.  Yesterday, I related to you the story of Angela Merkel of Germany chastising Italy over its debt-to-GDP ratio, as she’s looking over the immediate horizon and can see the trouble brewing in Italy, but now France has joined in the pressuring of Italy.  The EU is in deep trouble just now and it looks like the beginning of the end.

Some see this as empowering the US, but any such bubble will be short-lived, as while power in Europe is likely to become decentralized in the short run, in the US, a collapse of our markets and our banking system may not be too far away as I reported Saturday and Sunday.  Our current state of economic and financial affairs leverages strongly against any lasting leadership role, because we’re in debt very nearly on par with Italy, and if we fold, the rest of the world will follow.  The problem at the moment for the US is that we’ve stuck our necks out on behalf of the Europeans via the Federal Reserve and the International Monetary Fund to an extent that we are now firmly tied to their fate.  If they fall, so will we, but the question remains: How far, and how fast?

If we had wise political leadership, they would demand that we stop sticking our neck out on behalf of the Eurozone.  Yes, if they fail, it will hurt us too, but the more we increase our stake, the greater our eventual losses, and the greater the damage will be here at home.  If the EU winds up dissolving at some future date, it will be a potential boon to American economic might, but in the short run, it will have dire effects on our capital markets.  The point to be understood is that I can’t imagine a way that Europe fetches this one from the fire, as the UK’s reluctance signals.  If the British do not wish to stick their necks out, I can’t imagine a reason on Earth that we should be so-inclined.

Domestically, we have weak leadership in the only House in government that would be able to stop any of our further involvement. John Boehner’s not going to stick his neck out in opposing what’s being done with the European derivatives from the Bank of America and JP Morgan, just as he wouldn’t stick his neck out over the debt ceiling negotiations.  In the end, Boehner will capitulate to the Democrats just as he did in July, and much like David Cameron is having to do with members of Parliament in London, Boehner will be trying to herd his members in Washington DC who can see the elections of 2012 directly in front of them, and know they cannot support these kinds of deals any longer.

What all of this is likely to mean on Wall Street at the open on Monday is anybody’s guess, but one thing’s for certain: The volatility we’ve been seeing these last several months is likely to continue, and one of these days very soon may be the worst day on Wall Street in 80 years.  I’m not trying to instill fear or panic, but I want you to know what’s going on in the world around you.  With Europe on the brink, the Middle East ablaze, and our own nation in a severe downturn, it’s only natural to wonder when the bubble will burst.  Washington has been trying to conceal all of this from you for so long that I think they may have forgotten it’s fake.  You can’t support the markets with direct injections of cash as was done through TARP, the bail-outs, and QE2 without eventually arriving at the day when it all goes belly-up.  Having been linked to Europe so thoroughly, we are more vulnerable than ever. Our political leaders have neither the competence nor the will to extricate our nation from the grip of a global calamity.  In the case of at least one individual, I believe it’s being engineered.  Prepare, ladies and gentlemen, prepare.

Dana Perino: Party of Washington DC

Wednesday, August 17th, 2011

Which Party?

Watching Dana Perino take her well-deserved lumps on Hannity on Tuesday night was one of the few highlights of my day.  Dana Perino and the rest of the DC-insider crowd are approximately what the rest of us out here in “fly-over country” refer to as RINOs.  They serve the interests of a viewpoint that seeks to avoid conflict and confrontation with no boat-rocking while you [quietly]pay the bills.  In short, she serves the Washington DC crowd that isn’t defined by an official party, but instead the all-consuming grasping and groping for power that is the Beltway Axis.   Perino got caught by Hannity when he asked her about her earlier reaction to Iowa Tea Party organizer, Ryan Rhodes, who confronted Obama on Monday.

Perino didn’t like it, thinking it disrespectful to the office of the president that some little person(a.k.a. “Hobbit”) from out in Iowa would dare to challenge the President.  More, she actually defended Biden, who had called the Tea Party “terrorists” or at least agreed with that sentiment as expressed by Congressman Doyle.   While a Republican in name, only the party of Washington DC enjoys her loyalties.

Dana Perino, the Republican?  Yes, that one.   The former Bush Press Secretary took Obama and Biden’s side in this instance against an average guy who is an Iowa Tea Party organizer. Why would she do that?  Well, you tend to speak kindly of those who’ve appointed you to the Broadcasting Board of Governors.  You didn’t know that?  Most people don’t.  Yes, she’s a big government Republican.  Are you shocked yet?  She also works for a public relations firm, Burson-Marsteller, where she serves as a “Chief Issues Counselor,”  and she has acted as Karl Rove’s family spokesperson, informing the media about Rove’s divorce in 2009.

Knowing a bit more about Perino, it’s easier to understand how she’s part of the Washington Insider crowd.   It’s small wonder that she’s not a big fan of Tea Party folks.  The Tea Party stands opposed to the whole stinking system in which she is thoroughly entangled.  When some assert that there’s not a dime’s worth of difference between Republicans and Democrats, Dana Perino is of the sort whose behavior tends to substantiate their point.

The Republicans Dana Perino represents are the sort who think Lisa Murkowski is “a strong conservative,”  as she herself told Neil Cavuto.  She’s also the kind of Republican who doesn’t have any intention of addressing illegal immigration, and attacks those who take a strong stance against illegal immigration.    They don’t experience the problems, so it’s easy for them to sit inside their insular DC bubble and tell the rest of us how to live, and chastise us for what we ought to be willing to accept.

Then you hear Perino criticize Sarah Palin as being inauthentic?  The irony is amazing, and I’m certain Perino knows it.

If you wonder why somebody like Perino could seem to change sides so easily, it’s because you’ve misunderstood on whose side they really stand.   They stand on the side of an establishment in Washington that loves only its own interests.  They’re accustomed to being king-makers, and finishing well out of the running simply isn’t their preferred cup of tea. These are people who trade on the power of their insider connections, and that’s all they have to offer.

If you ask me, this is the larger part of what’s wrong with the Republican party.  People like Perino don’t stand for much of anything unless it’s to advance their own agendas to the detriment and the expense of the American people.  It’s time for a serious reform in the party’s structure, during which Perino and others of her ilk must be unmasked.  Along the way, it will result in the restoration of the nation.

When we go to the polls in 2012, for the primaries and in the general election, I sincerely hope it is part of our goal to show people like Perino the door.  The problem is that when it comes to Washington DC, Perino and her crowd are the home-team, and we’re just visitors, so if we send in a candidate they did not want, you can expect them to treat that President like an occupying foreigner.  They would, in such a situation, act exactly like insurgents in Iraq, seeking to undermine and sabotage such a president every step of the way.  That’s part of why they wish to defeat Palin.  They’ve seen her clean up Alaska, and they don’t want a repeat in Washington.  That’s their turf, and they intend to keep it that way.