Thursday, November 10, 2011

Europe On The Brink & The US

Europe is on the brink of a melt down.    The financial turmoil in Greece is impacting other European countries and in particular Italy.   As the third largest economy in Europe after Germany and France, Italy has a National Debt of $2.6  Trillion Dollars, which is about 125% of their Gross Domestic Product (GDP).   By contrast, the US National Debt is now at about 100% of our GDP at $15 Trillion Dollars.   In any case,  while ten year US Treasury Bonds probably command an interest rate of about 2.5%,  in order for Italy to borrow money to continue rolling over their National Debt, they must pay 7%, which is a tipping point and simply not sustainable.  

So like other countries in Europe that have required a bail out like Ireland and Greece, mostly funded by Germany and France, it is likely that Italy will require a bail out.   The only problem is that Germany and France cannot handle this bail out because it is just too big.    And, the European Central Bank, unlike the US Federal Reserve, is unlikely to just print Euros to cover this debt because European Central Bankers fear inflation and the devaluation of the Euro.  

So the only other solution, when the time comes to bail out Italy, is the International Monetary Fund.   And, guess where that money primarily comes from; none other than the US taxpayer.    Socialist President Obama would not dare to fund this bail out of Italy directly in an election year.   And, Ben Bernanke, the Chairman of the Federal Reserve, already on thin ice with the American people, is not likely to just start printing money to do it either, at least not openly.   So our illustrious leaders will use the IMF as cover to more covertly do the job.   Either way, it will be the American tax payer that foots the bill once again to both bail out Italy and protect American Banks. 

This has all got to stop.   Italy like most Socialist countries, including the US, are in trouble because of out of control entitlement spending.   Politicians have been borrowing money for years to buy votes to win reelection.   Public employee unions have extracted exorbitant compensation and benefits, including pensions, that are bankrupting all of these democratic countries, including the US.  

What we are seeing in Europe, along with the riots in the streets, is coming to the US if we don't stop the deficit spending and pay off our $15 Trillion National Debt.   To do so, we must sweep Socialists, at all levels of government, including President Obama, out of office because they are simply unwilling to restrain spending in order to pay off their PEEP's.   We can't get our country back on track as long as big government, tax and spend Socialists remain in office.   It really is that simple. 

Italy proves why we must take back our country in 2012 and 2014.   If we don't get spending under control and begin to pay off our $15 Trillion National Debt, we will lose control of our own destiny and national sovereignty.  China would love to bail out the United States, when the time comes, in exchange for giving up control of our country.   Or maybe, they will just ask for Alaska in exchange instead.   

You can bet China will have no problem drilling for oil all over Alaska.   The Chinese also would take great pleasure in mining in Alaska for all sorts of minerals since they won't have an Environmental Protection Agency to deal with once they get control of Alaska.  Sound ridiculous.   Remember, we bought Alaska from a cash strapped Russia for $7 million.   They called it Seward's Folly, after the then US Secretary of State; but it turned out to be a great deal, didn't it.   Alaska is just as close to China as it is to the United States.   From China's perspective, they would like nothing better than to gain control of Alaska for its oil and mineral resources.  

We have work to do to get our country back on track.   We must elect common sense Conservatives in 2012 and 2014 that support limited government, lower taxes and less regulation, a balanced budget, term limits, real education, energy, health care and entitlement reform, a strong national defense, including securing our border and fighting terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation.   There can be no compromise on any of these issues.  This is the platform supported by the majority of the American people and the only way to restore economic growth and job creation again in our country.   

We must make Socialist President Obama a one term President to get deficit spending under control.  We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   In the mean time, watch Italy in the next few months and you will see the outcome for the US if we don't get our fiscal house in order.     

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