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6-Dec-11 World View -- Merkel and Sarkozy kick the can down the road to March

If Iran goes nuclear, Saudi Arabia will obtain nuclear weapons from Pakistan

** 6-Dec-11 World View -- Merkel and Sarkozy kick the can down the road to March
** http://www.generationaldynamics.com/cgi ... 06#e111206



Contents:
Senior Chinese official warns of increased social unrest
Motley Fool's Sean Williams says that he was wrong about China
Merkel and Sarkozy kick the can down the road to March
Geither visiting European officials to urge quick, decisive action
S&P places 15 euro nations on warning for ratings downgrade
Russia choosing the stick over the carrot in the North Caucasus
If Iran goes nuclear, Saudi Arabia will obtain nuclear weapons from Pakistan


Keys:
Generational Dynamics, China, Zhou Yongkang, Mao Zedong,
Great Leap Forward, social management, Motley Fool,
Sean Williams, Angela Merkel, Nicolas Sarkozy, France,
Germany, euro, Timothy Geithner, European Central Bank, ECB,
Mario Draghi, S&P, Russia, Caucasus, Sochi, Olympics,
Circassians, Iran, Saudi Arabia, Pakistan, China, India

John, it seems very optimistic to think that two people saying, "there should be a rule that countries can not have deficits over 3%" will "kick the can to March". There is already such a rule. Perhaps these speeches will lift the market for a few days, but kick the can till March? No way.

Now if there was a rule that the ECB could not buy bonds from any country that had deficits over 3%, that might work. Good governments get below market interest rates, bad governments have to get market rates. Basically the inflation tax would flow to the good governments.