Thus far 2012 has started with a relative whimper, but as I write rumours are afoot suggesting that S&P are about to consign FrAAAnce’s sovereign bond rating to the bin (which have since come to pass – FrAA+nce). One notch down, or two, hardly matters in terms of the likelihood of default, but Gallic pride will suffer its worst battering since England triumphed over them in the 2007 rugby world cup semi-finals in Paris. The European Financial Stability Fund (EFSF) will almost certainly lose its AAA rating as a consequence, which would be a major embarrassment – although thoroughly deserved – for the perpetrators of this “Eurozone Bail Out Looting Agreement”; Ebola for short…and twice as deadly.
In an attempt to prove that they are not complete morons, the EU have decided to delay any decision on the Iranian oil embargo, when it was pointed out to them that crude oil north of $120 would push the European economy further into recession. Iran will quite likely implode under its own steam. Inflation is rampant, the rial is reeling (I was going to say that I don’t write this stuff, but then of course I do…) and interest rates are now over 20%. If the Ayatollahs decide that Ahmadinejad is making a pig’s breakfast of it all – unlikely in a Muslim country you might think – they might want to replace him with one of their own giving the US the perfect “excuse” to open yet another theatre of horrors.
Talking of theatre of horrors the land of the “free” is currently subjecting itself to the torture of eliciting a candidate to run against Obama in November. Last time around we had the spectacle of Sarah Palin, who would have been slaughtered by Dan Quayle in a spelling bee. Today we have a Mitt, a Newt, two Ricks and a Ron. (Yes yes I know we have a lot of quaint names over here. Whenever I visit the States I introduce myself as “Clyde”; it saves an awful lot of hassle…) Their televised debates are like watching Big Brother on LSD – is there any other state to be in to watch it? My vote, if I had one, would be for Ron Paul. He is the only candidate with a genuine proposal to reduce the budget deficit and he understands how dangerous the world is with an unchecked and unaudited Federal Reserve hell bent on printing its way to oblivion…
Sadly he seems unelectable as the powers that be – Wall Street and the military complex to name but two – deem him to be “dangerous”. Although he, himself, is a spritely 76 he does have youth on his side; the youth of America. It is all very reminiscent of the 60s, my own formative years, when the post war hierarchy started to be challenged. There is a similar if not more pressing feeling that all is not right with the world and the “Kids in America” get that. To quote from Kim Wilde’s hit single – “Outside a new day is dawning. There’s a new wave coming I warn you.” Does the world really have to wait another four years?[subscribe2]