Tag Archives: Europe

How Much Pain Do You Want? Update 3/23/2013

There are hundreds, maybe thousands, of economists that will tell you that if you want to see where we are headed if we don’t fix our cyprusw2-webfiscal house, all you have to do is look at Greece, Europe, and the EU. Just as many will also tell you that the “fix” for our exploding national debt and debt to GDP ratio will be harder to swallow the longer we wait for this “not immediate” crisis to become immediate.

How hard? Let’s look at what Cyprus is considering for their $7.5 billion EU bailout. They want to dip in to the checking accounts of depositors, charging them a tax on their insured deposits. Can you say “run on banks?”

Cypriot banks are holding $88 billion in deposits, including $49 billion in accounts of more than 100,000 euros. A “huge amount” for a country of 1.1 million people. Many of the biggest depositors are foreigners, including rich Russians, (Russian Mob money). President Putin is not happy about it.

Do you believe something like that could not happen here? Right now, there are ‘tax and spenders’ trying to figure out how they can get away with a “wealth tax.” Others have their eyes on your 401K and other retirement plans. Cyprus has their version. Don’t think for a minute that something like this isn’t on Mr. Fair-Share-Redistribution-of-Wealth-Social-Justice Obama’s mind. Why else would he say we don’t have a spending problem and instead have a revenue (not-enough-taxes) problem?

As part of the EU’s bailout, here’s what Cyprus is considering . . .

Those with under 100,000 Euros in their accounts are slated to receive a 6.6% haircut while those with more than 100,000 Euros in their accounts will be docked 9.9%.

Europeans know that the welfare state they made for themselves has become unsustainable. The fix for them now is causing rioting in the streets. There aren’t too many Americans still alive that remember the run on banks and the depression that followed. But if we’re not careful, if we don’t turn this ship around, we have a good chance of seeing history repeat itself.

Link: The EU Crosses the Rubicon | Cyprus president in desperate bid to prevent run on banks  |  Watch Out: Your 401(k) Is Being Targeted  |   Gartman Warns Cyprus: One Does Not Steal Russian Mafia Money And Get Away With It  |  Cyprus closes in on E.U. bailout, U-turn on levy

EPA, High Mileage Cars Not Permitted In U.S.

If there are only three or four cars capable of 70 mpg, the gas tax revenue shortfall angle is negligible. But not necessarily a limitation. There’s nothing stopping Washington from coming up with a new tax to replace half the gas tax revenue that would be lost by doubling the gas mileage (presuming every car in the country also doubles their mileage.) Or, just double the existing excise tax. Either way, the working poor will be hit the hardest.

The reason why a Volkswagen that gets 70 miles per gallon can not be sold in the United States is because of government regulation. The real reason is the emission standards as dictated by the EPA and the Obama administration. The penny-pincher on gas emits more ‘pollution’ than what the EPA allows. And the reason for that is the farcical man-made global warming BS coming from what is now known as the environmental movement. Wholly embraced by the Obama administration.

The EPA is one government agency that needs to be reduced to an advisory agency, not a regulatory agency. Congress is our regulatory agency. Or better yet, just eliminate the Environmental Protection Agency and save $8.3 billion a year without them. In ten years time, and without the idiotic baseline budgeting scheme, that represents a saving of $83 billion dollars.

Ilegal Immigration Threatening France

Whether from ignoring illegal immigration, as is the official position of the Obama administration with their Mexican Dream Act, or by an open border agreement in the EU, the problems remain the same. No assimilation, and overloading of support systems.

A wave of immigrants who began arriving in Italy and southern Europe following the Arab Spring last year has put the  27-year-old zone under unprecedented pressure. French president Nicolas Sarkozy yesterday threatened to wreck the European free travel zone unless there is a new pact to cut down on illegal immigration.

Link: France could quit EU open borders deal because of illegal immigration, warns Sarkozy

Today’s Special, Daniel Hannan At CPAC

Listen to the advice from someone who has been there. Where ‘there’ is the place where President Obama is taking this country. This video shows what this writer, and I’m not alone on this point, was saying about the Obama administration two years ago.

Essentially, they are heading the country southbound in the northbound lane. And instead of advising him to turn around, they’re telling him to speed up. And before too long, this great country will be in the same shape as Greece, Great Britain, Spain, Italy, and the rest of them.

Hon. Daniel Hannan, Member of European Parliament

Finland Elects First Conservative President In Five Decades

President elect Sauli Niinisto will be the first president from the conservative National Coalition Party since 1956, and the first in 30 years from a party other than the center-left Social Democrats.

The 63-year-old took 63 percent of the votes, compared to 37 percent for his rival, Greens candidate Pekka Haavisto, official results showed with 100 percent of ballots counted.

Link: Conservative wins Finland presidential vote

Hungary Bonds Hit Junk Status

The Euro zone is in trouble. Hungary pulled the sale of their public debt in three-year bonds. Could not afford the yields over nine percent. Meanwhile, Standard & Poor’s downgraded Hungary’s bonds to junk status.

‘Too big to fail’ is one thing. Try this, ‘Too big to save.’

The teachable moment here is, unless we turn this ship around, you’re looking at our future by looking at the economic situation in Europe today. Good too for the Brits continued refusal to adopt the ‘solution’ the European Union has in mind. It’s best not to board a ship while it is sinking. Besides, they have their own problems.

Stimulus Spending, For What? For Who?

With the economy still in recession, and the President still touting his American Jobs Act, Americans are becoming more skeptical about what all the stimulus spending has done for them. And the news about questionable stimulus spending and special deals is beginning to bubble up to the surface. Some new, some old.

Old news that is coming around again is the Fisker Automotive  (now Tesla Motors) luxury electric sports car that Vice President Al Gore invested in. That company got a half billion dollars for so-called green jobs. It is an electric car. It is a luxury car with a 50 mile range in total electric mode. Big investment for no market. But it did create jobs, in Britain and Finland.

The Fisker Karma sedan is priced at $87,400, with buyers eligible for a $7,500 credit on their Federal income tax returns.

Want one? Call them up and put down your $25,000 deposit. They’ll let you know when it is ready. Sell price? $87,400 to over $109,000.

So we subsidize a car company whose target market is “millionaires and billionaires,” then we give them $7,500 more of our tax dollars to incentivize them to buy it. All that from the guy that calls himself a ‘warrior for the middle class.’

Then there is the Solyndra scandal (Solar-Gate?) that wasted another half billion taxpayer dollars. That solar panel company declared bankruptcy not long after receiving your half billion dollars. Another big investment in an industry where there is no market. Officers of that company are big-time campaign fundraising bundlers for President Obama. Now those green jobs went directly to China. And Solyndra’s execs are pleading the 5th in Congressional hearings about it.

Are you seeing a pattern here of connected democrats and Big Labor being on the receiving end of millions and billions of your (and your grandkid’s) tax dollars? All in the name of stimulus and green jobs.

‘Real Ford Owner’ TV Ad

Check out this new TV ad from Ford. Their version of the man on the street press conference. The premise is that the subjects are real Ford owners using their own un-rehearsed response to a question from the ‘press corps.’

‘Chris’s’ response is golden. Took the words right out of my F150-owning mouth. Obviously Ford has the marketing sense to use this in their ad campaign because first of all, it is a popular sentiment, and, it is true. True about Ford. And true about the government’s handling of their competitors, Chrysler, now owned by Fiat, and GM, aka BM (Barack Motors). More jobs for Italy? That’s change you can step in.

This ad reminds me of the ‘Joe the plumber’ moment that President Obama had when his handlers let him talk to un-screened Americans for the first time. Now, it’s ‘Chris the Real Ford Owner.’ And Obama presses on down his yellow brick road.

Kudos to Ford Motor Company. It was to Chrysler and GM’s disadvantage for not standing up to the president. For not supporting their shareholders. For not supporting freedom, liberty, and free-market capitalism. Instead, they let the government roll them.

UPDATE 9/29/2011: Since the above ad, along with all their other ads are now no longer available online, below is a transcript of what it said. Ford’s explanation is that the ads run their cycles and that’s it. Their marketing people apparently don’t want to become a political news topic.

[Kristien] Source: LYBIO.net

Hi, I’m Kristien

[Real Ford Owner] Source: LYBIO.net

Chris, hi

Kristien]

We are gonna head on into the inteview

[Reporters]

Chris, was it buying America important to you?

[Chris] Source: LYBIO.net

I wasn’t going to buy any other car, that was bailed out by our government. I was going to buy from a manufactuerer that’s standing on their own, win, lose or draw, that’s what America’s about is taking the chance to succeed and understanding when you failed that you gotta pick yourself up and go back to work. Ah, Ford, is that company for me. Ford (Drive One)