Saturday, June 9, 2012

The good and the bad

Despite reports to the contrary, China seems to have control of its economy. Inflation is at a two year low and they are experiencing a labor shortage indicating there is no slow down. The bad news, senior German officials appear to have no clue how economics actually works, or worse they have an ulterior motive for collapsing the EU. (at this point, I vote for stupidity)

Spain has formally asked the European Central Bank for a $100 billion bailout for its banks. Spain was running a sizable budget surplus before the Euro panic started, now they have 25% unemployment. Bankers make money on the way up, and on the way down. People who actually make things get screwed. We thought we fixed that in the 18th century with the Hamilton plan, but the right keeps re-writing history.