I’m air born headed west for what will be a dreadful week. A former business partner lost a son yesterday in an automobile accident. It has been about a month since I have been in the U.S. so I thought I’d sit here until the engines cause me to become drowsy and reflect upon the circumstances of the two continents.
Things European — or more precisely Euro — appear to be stabilizing. It has been confirmed the the ECB or European Central Bank has reduced its’ balance sheet (in effect it has seen money printed and pumped into the Euro zone as faux assets beinf repaid as opposed to a general contraction of the money supply.) The advance of the Euro against the dollar and yen will likely continue. This exerts the possibility that exports from the manufacturing engines in Germany and Austria may see lower exports to the U.S., but then internal EU sales and a burgeoning China, et al will pick up the slack. Switzerland, a small country with big economic power, will stabilize on increased EU and Asian sales with some drift in exports to the U.S. since the peg to the Franc will likely be adjusted.
America seems to be seeing two things: a complete flattening of GDP growth .or negative GDP growth. Its’ balance sheet is ballooning due to continued deficit spending, a significant portion of which is being floated by the printing press as global appetite for dollars has faded. The Fed also continues to print money — expanding the money supply — and pumping said dollars into various instruments it deems might one day jump start the U.S. economy. Good luck on that one Ben, we’ll let you know what we think in maybe the year 2030 from our new home in the Orion cluster. In other words, fat chance he is going to win any progress with that one.
While much is settling into place across the globe another big item in America seems to be Barry Obama’s incessant fetish with guns. For America’s socialist leader, this is a good thing in that it trains the press upon something they can chatter about while King Barry I continues with his normal ignorant governance of America. Perhaps the world will be saved a blowup in America by no one thinking to use one of those guns to off the turkey. That would be very very bad. King Barry I needs to be allowed to finish his term so that the impending crash can be used to reset the once great America. Rise of the Phoenix?
I’m going to drink coffee and settle back for the hours ahead..