Monday, December 05, 2011

Groundhog Day!

* For an update on the world's biggest bugs (#weta) see my next post....

Well, here we go again.  I often wonder if reporters just like having the same story to report every day because they are allowed to cut and paste 90% of an article.  This week it will be all about Europe again as a series of meetings leads up to the big 12/9 get together.

* Today's headline: "Leaders Piece Together an Effort to Keep the Euro Intact", sounds an awful lot like the stories from 10/5, 10/12, 10/19, 10/26, etc, etc.  We'll look to hear something from a German/French meeting today as they try to align their positions in front of Friday's meeting.

* Italy looks like they will announce some austerity measures including tax increase, pension reductions and spending cuts.  This will likely go over as well as Hawaiian pizza in Rome.

* How is this for ironic? China may channel part of its huge pool of foreign-exchange reserves into investment in U.S. infrastructure, including rail and transportation networks.  “China is unwilling to take on too much U.S. government debt. We are willing to turn that money into investment.”

So our country to too broke to invest in roads, bridges and rails but China can take all of your Black Friday dollars and use them to fix up America.  I get the sense that they would consider this not as a form of new investment but as a way of protecting the investments they've already made.  Interesting nonetheless.

Quote of the weekend: "We have markets in which the various vested interests are almost completely aligned, we have a brand new Coalition of The Willing  which involves the vast majority of investors, governments, Central Banks and regulatory bodies the world over and, amongst that coalition, we have a common willingness to turn a blind eye to the realities facing the world; namely, too much debt and too few ways to pay it off."

Cheers!

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