Follow the money No. 87
Could more conspiratorial environmentalistas’ interpretations of our times be correct, that is, someone has been putting something in the water and we are all being lobotomized, even without major brain surgery?
You could make the case this week. Much of the world’s leadership, even though presumably suckling their bottled water, exhibits all the manifestations of imbibing something adversely affecting the normal cognitive processes:
- Pres. Barack Obama gets on television to boost his proposal for creating jobs by massive government expenditures and tax increases at a time when mostAmericans think the main problem – after disappeared jobs — is a runaway federal deficit. Never mind he sent a $447 billion spend and tax bill up to the Congress without a co-sponsor in either of the houses, that his own Party’s Senate leadership initially refused to look at it, then introduced something radically different as a Millionaires’ Tax. All that even though the President has repeatedly endorsed his Republican opposition’s claim any tax increase during a recession is job-killer. Of course, neither bill has a – woops! we can’t say that any more – chance of getting through the Republican-dominated House or the splintered Democratic Senate. Hello?
- Russian Prime Minister Vladimir Putin [soon scheduled to slip back into the presidency in Moscow’s musical chairs] has dreamed up a restoration of Stalin’s old USSR as a “Eurasian Union”, a regional agglomerative dictatorship. Putin’s vision is a world of such regional blocs, graciously allocating the U.S. the Western Hemisphere. Unable to accomplish fundamental post-Soviet reforms, he has put together helter-skelter economic collaboration with neighbors [including pumping their gas and oil] with Belorussia, Kazakhstan and a loose customs union [Common Economic Space]. He now aims bringing in the current pro-Moscow Ukraine leadership. But his present arrangements already cost Moscow $1.7 billion in tariff sharing revenues last year. Meanwhile, prospective investors in this harebrain scenario are trading every ruble to dollar they can get their hands on and tossing them out of the country – more than a record $49 billion so far this year. Hello?
- Luxembourg Prime Minister Jean-Claude Juncker, chairing the Eurogroup finance ministers, says “[E]verything will be done”. He means in an effort to avoid Greek default and without Athens opting out of the 17-member single currency. But the rating agencies just whacked Italy’s credit rating, Spain’s soaring borrowing rate fell only because the already strapped European Central Bank bought its increasingly high risk bonds, and debt-ridden Portugal is failing to meet targets. The decision whether Greece will get the next tranche of its bailout was delayed until mid-November so the European Union, the European Central Bank and the IMF can pull themselves together to decide whether Athens has met conditions for receiving help. Latest official figures say not: the Greek budget deficit will hit 8.5 percent of GDP in 2011 instead of the 7.6 percent it promised creditors. Greek officials now pledge the 2012 deficit will be slashed 6.8 percent of GDP instead of the promised 6.5 percent if a €6.6 billion [$8.83 billion] worth of supplementary austerity and reform measures package is forthcoming by 2013 Without the “current” €8 billion [$10.71 billion] tranche, Athens would bankrupt by this November with major repercussions for Europe and the world. Hello?
- Syrian Dictator Bashar al-Assad allegedly told visiting Turkish Foreign Minister Ahmet Davutoğlu Damascus would strike Israel with missiles if NATO helps his country’s rebels during his rapidly escalating civil war. “If a crazy measure is taken against Damascus, I will need not more than six hours to transfer hundreds of rockets and missiles to the Golan Heights to fire them at Tel Aviv,” Assad warned after Turkish foreign minister conveyed a United States’ polite request to clear out. Assad continued: “All these events will happen in three hours, but in the second three hours, Iran will attack the US warships in the Persian Gulf and the US and European interests will be targeted simultaneously” True, Assad is rumored to have chemical and bacterial warfare stocks. But the Israelis sit on the Golan Heights less than 75 miles, downhill to Damascus. After Assad’s father tangled with the Israelis in 1982 — the largest air-to-air combat of the jet age and one of the shortest – Syria lost 85 Soviet MiGs. Hello?
Yep, must be something in the water, the wine, the arak or wherever.
— Sol Sanders, a veteran international correspondent, writes weekly on the intersection of politics, business and economics, can be reached at email@example.com and blogs at http://www.yeoldecrabb.wordpress.com