Still wondering why markets are going down “despite” the U.S. budget agreement?
Well it didn´t take long for more than half of the money that were supposed to last 18months to evaporate. $400 billion was immediately added to the debt limit, but now we know that the latest couple of months after the official date (16th of May) when the debt ceiling was reached, U.S. have been putting down money into that black hole which in reality means that only $162 billion remains.
And so, of course, U.S. debt shot up $238 billion to reach 100 percent of gross domestic project after the government’s debt ceiling was lifted. This is the second time in history this has happen, last time was during WW II, but back then the total debt (personal+company+federal+states) was much, much lower, and back then U.S. was the manufacturing engine of the world.
Am sure the Tea Party movement are very cheerful over this one as journalists claim...
... just as they are extremely happy over the tax increase coming up in the future that this implies.
I wonder how many republicans will keep their seat in the next election..?
Of course the bad news doesn’t stop there. As per usual hidden away as a small note we also learn that U.S. private-sector downsizing pushed the number of announced job cuts to a 16 month high of 66,414 in July.
Yeah, markets should be very happy and go up. Right?
I wonder when the last time was I actually read an paper article or saw a news bulletin that actually told facts and the truth of things. I cannot remember when that was.
Well, back to Europe. U.S. fuck-ups are not alone in the world as you can figure out.
Isn´t it fun to see how they move from U.S. to Europe and back again day after day? Well, with tiny reports from China, Japan and so forth ticking in.
Italy seem to be next up on the scene. Kind of surprising to me actually, I thought Spain would go first by far. Italy actually have a manufacturing base and their banks aren´t so exposed to crap as their Spanish equivalents.
But meh, who really cares anymore?
They will all crash and burn, and yes; that goes for Sweden to. My birth nation is highly dependent on trade, have a very static labour market and way too high taxes to in any way be spared from the Greatest Depression.
This is going to be so much fun!
Pick your poison and sit back and relax and enjoy the show. Me I do vodka, each after his own.