The Beginning of the End?
As I have discussed at length over the last few months, the Euro currency is in trouble, and the member nations who make up the Euro are all facing potential credit rating downgrades. Drudge is linking the CNBC report that France has been downgraded by S&P, while others are sure to follow in the short run. At present, Germany and the Netherlands aren’t among those under immediate threat of downgrade, but the effects have been immediate as stocks have slumped throughout the morning on fears over the blow-back in financial markets. This is going to continue to threaten the global economy, and it’s becoming increasingly difficult to see a way out of this mess.
Meanwhile, there is no deal yet on Greek debt, which is a part of the trouble: Sovereign debt is destroying Europe, and as this occurs, we’re mimicking the levels of expenditure that got Europe into all of this trouble. It’s now clear that during a single term, Barack Obama will have added $6.2 Trillion to the national debt. That’s an extraordinarily dangerous growth in public debt that threatens the economic future and the political stability of the nation.
Ladies and gentlemen, this level of borrowing and expenditure cannot be sustained, and I cannot imagine how somebody like Mitt Romney will do anything to change this. He’s a timid politician in most respects, and he has no record of making cuts in issues where there is substantial political difficulty. In fact, the truth is that he’s added to the future liabilities of the state of Massachusetts through his health-care program, that is even now bankrupting that state. In this respect, Romney offers nothing substantially different from what another term of Obama promises to provide: American decline. It’s time to look closely at all of these candidates to see if any have a record of real cuts, because our nation’s future will depend on it.
Update: Before I could even get this posted, the situation is fluid, and it is being reported that five nations have been downgraded, including Italy, Spain, and Portugal by two notches each, while France and Austria were each dropped a single notch.
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