It’s kinda lookin’ like the tower of Babel out there, with everybody pointing fingers at everybody else and absolutely nobody actually getting anything worthwhile done.
One could argue how that’s especially true for Obama. While I’m sure he’s not actually yelling at anybody other than his staff members, the Republican party and any other domestic persons who aren’t living up to his high standards, our dictator want-to-be is certainly getting absolutely nothing done.
Take his failed Asia trip, where not only Asia rebuffed him but Europe as well for his tacky economic scheme in QE2, the Federal Reserve’s second round of quantitative easing… i.e. buying up U.S. bonds with U.S. money.
Personally, I don’t know what their problem with the scheme is. I mean, what could possibly go wrong with?
Like Asia and Europe though, U.S. investors seem to think a lot can and will go wrong.
They know very well that the first round of quantitative didn’t work and they’re pretty darn sure that this time won’t do anything either, so they’re not only selling off the market – down practically 170 as of 11:24 on Tuesday afternoon, but they’re also ridding themselves of the very government bonds Federal Reserve Chairman Ben Bernanke is so intent on buying.
It’s not a pretty picture out there, to say the least. Especially when you take into account that Russia, China and India are all making tighter trading agreements with each other. And if there are two countries we do not want drawing closer, it’s China and Russia, one of which has sway with North Korea and the other with Iran… four countries in total that really do not like the U.S. – or the Western world at large – very much.
European Debt Continues To Wreak Havoc
The dollar might be practically worthless at this point, but the euro has even less weight. And every single member of the E.U. knows that all too well.
Why do you think they’re pressing the debt-laden Ireland to accept a band-aid loan from the International Monetary Fund? They’re all worried that if Ireland’s economy collapses under the severe strain of too much government spending for too long – something the U.S. is intimately acquainted with as well – Portugal and Spain will fall next.
Hence the reason why Spain’s central bank governor, one Miguel Angel Ordonez, is firing verbal and political barbs Ireland’s way.
He’s not the only one in a cranky mood either. Greece’s prime minister, George Papandreou, is busy blaming Germany – its main benefactor in the whole euro-zone mess – for coming down hard on government-debt defaults.
Of course, I wouldn’t be talking much, if I were him. At least not to criticize other countries, considering how the world just learned that Greece’s budget deficit actually hit 15.4% of GDP last year instead of the 13.6% originally claimed.
In short, this is one big, global lesson that actions have consequences… and liberal economic tendencies rarely pander out in the long run.