You think the Greek and Irish crises were bad?

November 29, 2010

Wait until Spain’s economy goes into meltdown. That could be the blow that triggers the end of the Euro:

Economists say that given Spain’s large deficits and poor long-term growth prospects, any failure to achieve government targets for cutting the deficit, and/or any rise in Spanish bank risk, could cause a market panic and turn Spain into the next victim of market contagion.

A financial meltdown in Spain would have repercussions far beyond the Iberian Peninsula. For starters, many analysts believe a debt crisis in Spain would trigger a similar meltdown in Italy, which is the fourth-largest economy in the eurozone, and which suffers from many of the same financial woes that are plaguing Spain. What’s more, Italy has one of the world’s highest public debts, expected to reach a staggering 118 percent of GDP in 2010.

Given the relative size of the Spanish economy, financial turmoil in Spain would likely also doom the single European currency, and with that more than 60 years of European dreams of transforming the continent into a superpower-like United States of Europe capable of counter-balancing the United States of America on the global stage.

Germany, which arguably has more invested in (and also has benefited more from) the European Union than any other country in Europe, is alarmed by the potential unraveling of the euro. German Chancellor Angela Merkel says the prospect of serial European bailouts is “exceptionally serious,” and that while she does not want to “paint a dramatic picture,” it would have been hard a year ago to “imagine the debate” now taking place in Europe.

I know about as much about government finances as I do Buddhist theology, but, Chancellor Merkel’s desire to save the Euro aside, it would not surprise me to see, in a crisis created first by a Spanish and then an Italian crash, Germany withdraw from the Euro in order to protect its own economy. Germans already hated the bailout given to the profligate Greeks, and I imagine there’s grumbling about the deal given the Irish. Just wait until they’re presented with a bill from Madrid and Rome. I could well imagine even the Chancellor throwing up her hands and shouting Wir haben genug!

In any event, do read the whole article. It’s a good overview of both the problems Spain faces and the limited options it has to address those problems, given its entitlement-addicted people, inflexible labor market, and the power ceded to the European Central Bank.

Question: If the Euro zone does collapse like the wet paper bag it is, does that kill the European Union, too? In the abstract, the death of that burgeoning bureaucratic dictatorship would seem to me a desirable thing. But it would be potentially very, very messy. As in “We’re angry, resentful, feeling hyper-nationalistic, and we don’t like you” messy.

 


Life with the Nanny President

November 29, 2010

Well, this says it all about how President Obama sees his role in our lives:

In “Revival: The Struggle for Survival Inside Obama’s White House,” MSNBC analyst Richard Wolffe, a writer sympathetic to the president, reports the prosaic backroom details of the White House struggles from early this year, but occasionally stumbles upon an off-the-cuff revelation that’s much more interesting.

One staffer was conspicuously overweight. The president, in an incident that Wolffe believes proves how caring the man is, took it upon himself to present the aide with a salad for lunch — “then listened to him protest that he could take care of his own health. ‘I love you, man,’ Obama said. ‘I want you to look after yourself. Eat the salad.’ ”

I love you, man. Eat the salad. That is the Obama presidency in a plastic see-through clamshell. (Hold the ranch dressing!) The president loves us. He knows what’s best for us. We should bow to his superior wisdom.

This reminds me of a video Mary Katherine Ham did soon after the inauguration:

Little did she know she was making a documentary, not just satire.

Dear Mr. President:

Thanks for the love, man, but –and don’t take this personally– mind your own business!

Love,

The American People

(Crossposted at Sister Toldjah)


Tehran bombings target nuclear scientists?

November 29, 2010

Gee, who could be behind this?

Two separate explosions killed a nuclear scientist and injured another in the Iranian capital Monday morning, official news outlets reported.

Both scholars’ wives and a driver were also injured in the attacks, according to the news agencies. The slain scientist, Majid Shahriari, was a member of the nuclear engineering team at the Shahid Behesti university in Tehran, according to the official Islamic Republic News Agency, or IRNA.

(…)

The assassins, riding motorcycles, tossed bombs at — or attached them to — vehicles of the two Shahid Behesti University professors as they drove with their spouses en route to work between 7 a.m. and 8 a.m..

“A Pulsar motorbike drove close to Dr. Shahriari’s car and stuck a bomb on his car which after a few seconds exploded,” Tehran police chief Hossein Sajednia was quoted as saying by the semi-official Fars news agency.

The article also mentions another Iranian nuclear scientist assassinated last January.

But, who’s ordering the hits?

Let’s consider: Iran, an aggressive and terroristic nation, is developing nuclear weapons, which no one in their right mind wants them to have. They have repeatedly threatened to drop those weapons on a certain small country nearby, the government of which lives by the motto “Never again” and has been known to deal harshly with enemies who threaten its people.

I’ll give you three guesses, and the first two don’t count.

Via Instapundit.

LINKS: Gateway Pundit has video. Also Hot Air.

(Crossposted at Sister Toldjah)


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