Five European Nations to Be Downgraded by S&P

The fallout from the housing market bust here in America continues:

The Story:

Standard & Poor’s will cut the credit ratings of Italy, Spain and Portugal by two notches and downgrade France and Austria by one notch, a French newspaper said Friday, without citing its sources.
The newspaper, Les Echos, said that S&P would spare Germany, the Netherlands, Finland and Luxembourg in its long-awaited adjustment of euro zone sovereign ratings.
It said the announcement would come at around 4:30 pm ET, after the US stock market has closed.
“Remain alert tonight when U.S. markets close,” one euro zone source told Reuters.
US stocks slumped in reaction, though were well off their lows, while European shares closed lower.
In December, S&P placed the ratings of 15 euro zone countries on credit watch negative— including those of top-rated Germany and France, the region’s two biggest economies—and said “systemic stresses” were building up as credit conditions tighten in the 17-nation bloc.
Since then, the European Central Bank has flooded the banking system with cheap three-year money to avert a credit crunch. At the time, the U.S.-based ratings agency said it could also downgrade the euro zone’s current bailout fund, the EFSF.
Five European Nations to Be Downgraded by S&P: Report – Business News – CNBC.

This is what happens when progressives game a system and it comes all crashing down around them. Now you would think that they would learn from this little idiotic mistake; well, you would be wrong. They honestly believe the way to recover from this, is by spending their way out of a recession. Idiots, all of them. 🙄

Hannity to Perry: You sound like the #OWS crowd!

I have to hand it to Hannity, when he is right, he is right. I wrote the same thing. Which means I actually agree with Sean Hannity! Horrors! 😯

Video: (Via Mediaite) (H/T to HotAir Headlines)

Money quote:

Perry began the segment attacking President Obama, but Hannity quickly shifted gears to the “very harsh words” Perry has had for Romney. “It almost sounds like Occupy Wall Street,” he noted, “it doesn’t sound like someone who is governing Texas as a conservative.”
“There is a real difference between venture capitalism and vulture capitalism,” Perry replied, adding that “venture capitalism we like; vulture capitalism, no.” He justified his attacks saying that “the fact of the matter is he’s going to have to face up to this at some time or another.” Hannity wasn’t satisfied with this answer, asking Perry whether he was saying “that Mitt Romney is a vulture capitalist, that he is unethical.” Perry specified that he thought what happened with two specific companies bought by Bain was “irresponsible,” and that “the folks in South Carolina agree with that.” Hannity replied that it was still “as severe as they can get” as far as attacks go, though Perry insisted there were places where Bain had “destroyed people’s lives.

Rick Perry, making the Democrats arguments for them. Nice Ricky….real nice… 🙄

Obama’s World? — Fines for Bio fuel that does not exist is stupid, says… The New York Times?!?!

When the Obama lead Government loses the New York Times, something is horribly wrong:

WASHINGTON — When the companies that supply motor fuel close the books on 2011, they will pay about $6.8 million in penalties to the Treasury because they failed to mix a special type of biofuel into their gasoline and diesel as required by law.
But there was none to be had. Outside a handful of laboratories and workshops, the ingredient, cellulosic biofuel, does not exist.
In 2012, the oil companies expect to pay even higher penalties for failing to blend in the fuel, which is made from wood chips or the inedible parts of plants like corncobs. Refiners were required to blend 6.6 million gallons into gasoline and diesel in 2011 and face a quota of 8.65 million gallons this year.
“It belies logic,” Charles T. Drevna, the president of the National Petrochemicals and Refiners Association, said of the 2011 quota. And raising the quota for 2012 when there is no production makes even less sense, he said.
Penalizing the fuel suppliers demonstrates what happens when the federal government really, really wants something that technology is not ready to provide. In fact, while it may seem harsh that the Environmental Protection Agency is penalizing them for failing to do the impossible, the agency is being lenient by the standards of the law, the 2007 Energy Independence and Security Act.
The law, aimed at reducing the nation’s greenhouse gas emissions, its reliance on oil imported from hostile places and the export of dollars to pay for it, includes provisions to increase the efficiency of vehicles as well as incorporate renewable energy sources into gasoline and diesel.
It requires the use of three alternative fuels: car and truck fuel made from cellulose, diesel fuel made from biomass and fuel made from biological materials but with a 50 percent reduction in greenhouse gases. Only the cellulosic fuel is commercially unavailable. As for meeting the quotas in the other categories, the refiners will not close their books until February and are not sure what will happen.
The goal set by the law for vehicle fuel from cellulose was 250 million gallons for 2011 and 500 million gallons for 2012. (These are small numbers relative to the American fuel market; the E.P.A. estimates that gasoline sales in 2012 will amount to about 135 billion gallons, and highway diesel, about 51 billion gallons.)
Even advocates of renewable fuel acknowledge that the refiners are at least partly correct in complaining about the penalties — Via NYT: Companies Face Fines for Not Using Unavailable Biofuel – NYTimes.com

It is very obvious that the attempt to inject politics into our economy has failed. This means vote different in 2012.

Others: National Review, The Enterprise Blog, Weasel Zippers, The Volokh Conspiracy, Doug Ross and The Jawa Report

Jay Nordlinger makes a good point

Now some people would say that this is typical Republican establishment stuff, but I do not see it that way. He is making the same point as Michelle Malkin did, and she is not an establishment Republican, not by a long shot.

Via NRO’s the Corner:

The last two presidential election cycles have revealed a stinking hypocrisy in conservatives: They profess their love of capitalism and entrepreneurship, but when offered a real capitalist and entrepreneur, they go, “Eek, a mouse!” And they tear him down in proud social-democrat fashion. In the off season, they sound like Friedrich Hayek. When the game is on, they sound like Huey Long, Bella Abzug, or Bob Shrum.
Last time around, Mike Huckabee said Romney “looks like the guy who laid you off.” Conservatives reacted like this was the greatest mot since Voltaire or something. To me, Romney looked like someone who could create a business and hire the sadly unentrepreneurial like me.
Others said, “He looks like a car salesman,” or, worse, “a used-car salesman.” Ho ho ho! Commerce, gross, icky, yuck. Better Romney looked like an anthropology professor.
[…..]
Now Romney has said, “I like being able to fire people who provide services to me. You know, if someone doesn’t give me the good service I need, I want to say, ‘You know, I’m going to get someone else to provide that service to me.’” Simple, elementary competition. Capitalism 101. And conservatives go, “Eek, a mouse!”
I could go on: the $10,000 bet, the pink slips, conservatives wetting their pants, over and over. They have no appetite to defend capitalism, to persuade people, to encourage them not to fall for the old socialist and populist crap. I fled the Democratic party many years ago. And one of the reasons was, I couldn’t stand the class resentment, the envy, the hostility to wealth, the cries of “Richie Rich!” And I hear them from conservatives, at least when Romney is running.
Go ahead, have your “bloodbath” in South Carolina. Make Romney the little guy in the top hat and tails, from the Monopoly game. Have your Santorum, your Perry, your Newt. They may carry something like four states in the fall, but at least they’ve never sullied their hands with — eek! — business.
Perhaps after the election, while Obama is deepening the country’s poverty, Romney and others like him can find a party friendly to capitalism. We conservative Republicans turn out to be cradle-to-gravers, like everyone else.

Now obviously the man is a Romney supporter, because he does believe that nobody can win, but Romney. Now that I disagree with, because the grassroots no not like the man, either does most of the evangelical Christian base. Evangelicals just do not trust Mormons; they never have and most of them, when they are being very honest — do not really believe Mormons are Christians either.

One part that I totally relate to, as former “blue dog” or “Reagan” Democrat, is this:

I fled the Democratic party many years ago. And one of the reasons was, I couldn’t stand the class resentment, the envy, the hostility to wealth, the cries of “Richie Rich!”

Boy can I even relate to this one. This was it for me too. Although, the main reason for my leaving the Democratic Party for me was the stoking of the racial resentment towards white people, like me. I mean, the, “You got what you have, because you is white and it was all handed to you on a platter!” gets a little old after a while. The truth is I got everything that I own and have owned in the past was because I worked for it. I did a good deal of tail busting to buy the stuff that I had and still do have; and I am not talking about sitting at a desk —- I did a good amount of back-breaking work! Nobody ever handed me anything on a platter. Heck, I will be honest. I do not have a high school diploma. I have A.D.H.D and I suck very badly at math. Oh, I can keep my checking account balanced. (Thank You GOD for technology!) However, I will not be applying at NASA anytime soon.

Another point that I believe is fair to make this; and I have made this on my previous blog and I think on this one too. Populists — whether progressive or conservative — are under the impression that “big business” is the enemy. This is a lie that has origins in the era before the progressive movement; I am referring to the populist era that lasted from 1891 until 1908. The truth is, big business is not the enemy, big Government, and regulation is the enemy of the American people. As much as it sounds like I am being heartless; but, in a capitalistic society like ours, which is a free society, businesses who produce and make a profit succeed, those who are failing lose and usually close up. Because of this, people lose jobs — it happens and it is a part of the process. A Presidential candidate that is running as a Conservative that accuses someone of being overtly evil, because they happen to be a part of the process of capitalism — is making the Democrat’s argument for them, and should not be calling himself or herself even remotely a Conservative.

MAJORLY MAJOR UPDATE JAN 11, 2011 – My friends, I do really believe what I wrote above; please do not think that I don’t. Because I do. However, after watching this video here; I could not ever, in good conscience; support Mitt Romney. Why? Because I was under the impression that a few small companies got shut down; these were not small companies, these were HUGE companies and a WHOLE BUNCH OF PEOPLE got hurt because of simple greed. To me, as a born-again Christian, there is just something very unchristian about ruining people’s lives — just because you can — sorry my friends, I am all for business. But I am not, nor have I ever been for, capitalism at the expense of other people’s lives and livelihoods. I just cannot support that at all. 😡

Is China’s Economy about to collapse?

This is not the first time I have heard this, but:

Which does China face? A popped real estate bubble could exert a big drag. Housing construction exceeds 10 percent of GDP. That’s historically high, says Lardy. At a similar stage of economic development, Taiwan’s housing investment was 4.3 percent of GDP. In the recent U.S. real estate boom, housing peaked at 6 percent of GDP. In China, housing stimulates much consumer spending (furniture, appliances) and accounts for 40 percent of steel production, notes Lardy. Land sales are also a big revenue source for local governments. All would suffer from a housing bust.
There are mitigating factors. Outside Beijing and Shanghai, it’s unclear that housing prices are “out of line with household income growth,” says economist Eswar Prasad of Cornell University. Chinese buyers also typically make large cash payments for their properties. Compared to United States, a housing bust is less likely to become a banking crisis as mortgages sour.
Whatever happens, China’s economic model is reaching its limits, as Lardy argues. It has relied on exports, promoted through the controlled exchange rate, and investment, including housing, subsidized by cheap credit. Meanwhile, Chinese savers have been punished by the low returns on deposits. This dampens their incomes and consumption spending. The trouble is that the global slowdown threatens exports and housing’s excesses threaten investment. Unless China can switch to stronger consumption spending, its economy will slow — or it will achieve growth by becoming even more predatory toward other countries. — Is a Chinese economic slump on the horizon? – The Washington Post

Go read that whole thing, because this is the best case for this belief. The funny thing, the people over a GoldSilver.com have been saying this for a while:

Go check them out and get into Gold and Silver; before you lose it all.

Here is a good reason why I will be voting Republican in 2012

This is very scary…:

In his remarks, Genachowski said the program has been successful, but has also been plagued with problems of accountability and efficiency. Multiple service providers are often supplying Lifeline subsidies to the same households, he said, because there is no centralized system. To address the issue, Genachowski said, the draft proposal creates a national database of Lifeline users to prevent duplicative billing. It also sets a budget for Lifeline aimed at connecting eligible consumers while staying within budget, and requires that participating companies be subject to independent audits every two years. — via FCC’s Genachowski proposes broadband reform – Post Tech – The Washington Post

National Database of internet users? Yeesh. 🙁 The Democratic Party has gone mad. Go read, that whole thing. I will say this; that low income thing is a crock; if they do it for them, they will do it for everyone. This is why we have to win in 2012 and further more, Why we also have to pick a real Conservative and not some idiotic Rockerfeller big-goverment Republican. Which is why I do not quite understand why people like Michelle Malkin get upset over the back and forth that is going on.

The Republican grassroots and the Conservative grassroots; which does include me — needs to know what they are getting this time. The last time around, everyone just followed behind what the Republican establishment gave them. Not this time; we are better informed, and thanks to twitter, facebook and blogs, we communicate better. Which is why elitists like President Barack Obama hate the internet so much. To be fair, I would be willing to bet some Republicans dislike it too.

(H/T Drudge)

Video: Why I do not entirely trust Fox News

Anyone that reads the blog knows that, yes, I am a Christian. However, I find a good deal of the social Conservative movement to be troubling. Mainly, because of a big-Government statists that exist within those circles. A perfect example of this is Fox News and Fox News’s Bill O’Reilly.

Bill O’Reilly is also a social traditionalist or if you prefer a social conservative. While I believe that his intentions might be pure; he does have the mentality that the Government must protect its citizens from social perversion. I am afraid, as much as I enjoy watching Bill’s show and that Network; that this is a Statist mentality and files directly in the face of what true Conservatism is about. This video also shows that Fox News channel is, just like its socialist counterparts at MSNBC and CNN; pursuing an agenda that includes outright false information.

Enjoy the video:

Again, I do not feel Fox News or Bill O’Reilly to be overly evil or anything. (little strange at times, maybe! 😉 ) I just disagree with his statism very highly.

This is why illegal immigration bothers me

Via Preston Wright on Facebook:

The American Militia’s website

No, I did not watch the Republican Debate last night

I had good reason not to watch too. From what I was hearing on twitter last night; while I was lying in the bed and drifting off to sleep, is that the debate was lousy. This was confirmed by things that I have read this morning. I guess the usual liberal partisan hacks over at ABC NEWS were living up to their expectations — not to mention the fact that the head of the DNC was at the debate outright lying to the media.

Also, the silly back and forth, not to mention the preening; as to who is the most Republican of them all — I find all that quite the bore. The truth is none of these contenders is of the Reagan stripe of Conservative, most of them, with the exception of Ron Paul; who is too far in the other direction — are just Neo-Conservative war hawks. Now will I vote for one of them? At this point, I really do not honestly know. It depends on which one makes the cut with the GOP nomination.

To be quite honest, the primary process really does not interest me that much. Now the general election is another story; the debates that I very much look forward to are the general election debates, how is Obama going to face someone like Romney? How is Obama going to stand there with a straight face and repeat that silly mantra of Hope and Change?

The truth is the only thing that is changed, is the amount of debt and the rate of unemployment. This is not to even to mention all the bureaucratic Government regulations that was put into place that killed many jobs in the oil drilling business. I just do not see how Obama is going to defend all of that, without sounding like a blithering idiot.

There is supposed to be a debate tonight as well, from what I hear. I will most likely skip it too. Again, I just do not have any interest in the Republican Party fashion shows. I just want to see this failure of a President try to debate and defend his failures in leadership. It is something that I do look forward to very much.

Bet this would be an interesting book to read.

Man, and I thought the Clinton’s were dysfunctional:

Then-White House Chief of Staff Rahm Emanuel offered his resignation to President Barack Obama in the winter of 2010 after a series of columns appeared depicting him as the lone element keeping the Obama presidency intact. According to then senior adviser David Axelrod, Emanuel understood that the stories “were an embarrassment” to the president. The president, already suffering from a setback to his health care reform effort, declined Emanuel’s offer to resign, despite being convinced that his chief of staff was the main source for the columns.
“I’m not accepting it,” Obama replied. “Your punishment is that you have to stay here and get this bill done. I’m not letting you off the hook.”
That revelation is one of the more explosive included in “The Obamas,” a new book by Jodi Kantor of The New York Times about the first few years of the Obama administration and the strains that it produced on the president’s marriage — strains that were ultimately overcome.
The dramatics that surrounded the passage of health care reform — culminating in Emanuel’s near-resignation — reflect the type of struggles that routinely pitted Emanuel against the first lady during the first two years of the Obama administration. The two jockeyed for influence over the president even before he formally took office. — Via ‘The Obamas’: Book Reveals Friction Between Rahm Emanuel, Michelle Obama (UPDATE)

Bet that would make a very interesting read.

Get the Book:

Update: As much as I hate to admit it; this guy does have a point. This is why I watch the comment section around here, like a hawk.