Tag: Austerity

What the Current Debt Ceiling Debate Is Telling Us!

I am a firm believer that there is a message in most things, it is just a matter of being willing to see it. The world has entered an era where debt levels, at every level of economic activity, have taken on a new focus and level of importance. Everyone, everywhere is now concerned about debt. The financial crisis of 2008 has resulted in a world wide de-leveraging process.

This has been a long time coming as politicians at every level have attempted to bribe voters into believing that they could have their cake and still be able to eat it. This has been by spending far more than they receive in tax revenue. World wide politicians have been on a dangerous fiscal bender by ignoring the 1st Rule of Economic which is that there is no such thing as a free lunch.

A Few Thoughts on Greece

Later tonight the Greek parliament will vote on a five-year plan of budget cuts, tax raises and privatization in order to win a bailout package consisting of EU/IMF funds. While the prospects of the parliamentary vote, its expected passage, and the subsequent saving of the French banks, have somewhat calmed the markets; I am somewhat surprised how easily the market seems to