Tag Archives: Welfare State

Europe is going socialist – what’s the worst that could happen?

European Debt to GDP and Credit Rating
European Debt to GDP and Credit Rating

From MSN Money.

Excerpt:

European finance officials have discussed as a worst-case scenario limiting the size of withdrawals from ATM machines, imposing border checks and introducing capital controls in at least Greece should Athens decide to leave the euro.

EU officials have told Reuters the ideas are part of a range of contingency plans. They emphasized that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen – no one Reuters has spoken to expects Greece to leave the single currency area.

[…]The discussions have taken place in conference calls over the past six weeks, as concerns have grown that a radical-left coalition, SYRIZA, may win the second election, increasing the risk that Greece could renege on its EU/IMF bailout and therefore move closer to abandoning the currency.

No decisions have been taken on the calls, but members of the Eurogroup Working Group, which consists of euro zone deputy finance ministers and heads of treasury departments, have discussed the options in some detail, the sources said.

As well as limiting cash withdrawals and imposing capital controls, they have discussed the possibility of suspending the Schengen agreement, which allows for visa-free travel among 26 countries, including most of the European Union.

[…]Another source confirmed the discussions, including that the suspension of Schengen was among the options raised.

“These are not political discussions, these are discussions among finance experts who need to be prepared for any eventuality,” the second source said. “It is sensible planning, that is all, planning for the worst-case scenario.”

I noticed an article that came out in CNN Money that explained how American households had lost almost 40% of their net worth since 2007 – the exact year that Nancy Pelosi took control of the House and Harry Reid took control of the Senate. The Democrats have been running the European playbook since they took over in 2007. We are just a few steps behind the Europeans thanks to the borrow and spend policies of the Democrats.

What causes women to become single mothers by choice? Are men to blame?

Dina sent me this revealing article from the UK Daily Mail. It answers the question “Where does fatherlessness come from?”.

Excerpt:

My marriage ended, without rancour or argument, 18 months after it had begun. There was no recrimination, just a realisation, as sharp as physical pain, that we would never — could never — agree on one fundamental point.

I wanted children; my husband Anthony did not. You may think we should have resolved this crucial issue long before we bought a house and vowed to spend the rest of our lives together, but love had a way of blinding us to the depth of our disagreement.

By “love” she means three things: 1) he was physically attractive, 2) she became sexually active with him after one month of meeting him, and 3) she moved in with him before he made a commitment to marriage and parenting. (As we shall see) As far as I can tell, she spent her late 20s to mid 30s with this guy – a guy she chose of her own free will. A guy who never indicated any interest in children, but who indicated plenty of interest in recreational sex.

More:

Today, I am 37 and a single mum to gorgeous three-month-old twin boys Charlie and William. They were conceived through IVF, using my eggs and sperm from an anonymous donor, and the love I feel for them is all-consuming.

[…]Anthony, a policeman, was easy and fun; we chatted comfortably together, and when we started dating I was impressed by his integrity. He had passionate views about fairness and loyalty. He was attractive, too — tall, dark hair, blue eyes — and I felt we could build a loving relationship together.

“Easy and fun” = no divisive truth claims, no moral judgments, no moral boundaries, no goals, no plans, no expectations, no obligations. Perfect! The modern feminist ideal.

More:

After a month or so, our physical relationship began, but we did not rush things. It was a couple of years before he moved into my flat in Crawley, West Sussex, and I expected we’d eventually marry and have kids.

Looking back, I suppose I should have heeded the warning signals. When I broached the subject of children, he stalled. His stock reply was: ‘We’ll have them later.’

So although he was non-committal, I loved him and assumed that his paternal instinct would kick in as he grew older. But the years passed and I was not reassured.

She thinks that a man who agrees to recreational sex after a month and then agrees to cohabitation after two years is the kind of man who is capable of making a lifelong commitment to be faithful to her and to raise children. That strikes me as equivalent to saying that a man whose favorite movie is Top Gun would also make a good airline pilot.

More:

And then I reached 30. My friends were marrying; settling into comfortable domesticity, preparing for parenthood, and Anthony and I were still in this limbo.

[…]Then my best friend announced she was pregnant and the joy I felt for her was tainted by Anthony’s absence of commitment to the idea of having children with me. So we had another discussion — this time, it was a passionate one. ‘It’s a deal-breaker,’ I said. ‘Much as I love you, if you don’t want children we can’t carry on.’

But, again, he assured me that it would all happen. I just had to bide my time.

So I waited until Anthony was 30, an age when I felt he was old enough to settle down. We loved each other whole-heartedly; we’d bought two successive homes together and the understanding was implicit: my future was bound up in his.

[…]I wanted so much to believe he would warm to the idea, but Anthony equivocated. He still wasn’t ready, he protested.

[…]But then Anthony demonstrated just how strong his aversion to babies was. We were visiting a friend who’d recently given birth and, when her baby cried, Anthony made his excuses and went home.

‘I just can’t stand the sound of that crying,’ he said testily when I confronted him later. ‘If we had a baby, I’d have to move out for the first six weeks.’

It wasn’t a propitious sign, but eventually he seemed to soften.

‘If we’re going to have children, we’ll have to get married first,’ he said the next time I raised the subject, and for once I agreed absolutely. We should get married; by making a public commitment to stay together for the rest of our lives, we would be taking the first step towards establishing a secure home for our future babies.

[…]After six months as man and wife, there had been no mention from Anthony of children. So one day, as we walked home from town, I broached the subject again.

‘We can’t afford to have children,’ he responded sharply and, rather than discuss the topic further, he marched off ahead of me.

[…]This was not the life I had planned for myself: for the first time I started to feel anger towards Anthony. I felt he had forced this situation onto me.

Have no fear, the government was there to give her taxpayer-funded IVF and single mother welfare payments, free day care, free public schools, and free health care. After all, none of this was her fault. It was all that beastly man’s fault. It’s nothing that can’t be solved by taking a little money from the other single men’s pockets, though. After all, if they have less money, that will make them even MORE likely to marry and conceive children. Anthony couldn’t afford to have children, so the solution to that is to tax all the other men so that they can’t afford to have children. Fatherless children impose enormous costs on society as well, most directly through increased crime. But who cares? As long as this woman gets what she wants, right?

And it goes on and on and on, with feminists completely ignorant about how they are causing their own messes with their support for wealth redistribution and their own irresponsible choices with men. He was attractive though. Very attractive. I’m sure her friends were all impressed and envious of her on the wedding day. After all, if a man has a square jaw and enjoys recreational sex, that is a clear sign he is ready for marriage and parenting. Right?

Moody’s downgrades credit rating of 26 Italian banks, Spain is next

European Debt to GDP and Credit Rating
European Debt to GDP and Credit Rating

From Yahoo News.

Excerpt:

Moody’s Investors Service has downgraded the ratings on 26 Italian banks as they struggled with the effect of government austerity measures.

The rating agency said Monday that the banks are suffering because Italy is back in recession and government austerity measures are cutting demand for loans.

The banks are struggling with more loan losses, limited access to funding and weaker profits.

Moody’s noted that support of the European Central Bank lowered the default risk of many banks.

Its outlook for all 26 banks is negative.

From the Wall Street Journal.

Excerpt:

The ratings for Italian banks are now among the lowest within advanced European countries, reflecting these banks’ susceptibility to the adverse operating environments in Italy and Europe, Moody’s said in a statement. Two of the country’s largest institutions, UniCredit SpA (UCG.MI, UNCFF) and Intesa Sanpaolo SpA (ISP.MI, ISNPY), were included.

Moody’s move came hours after the firm raised an alarm on Spain, arguing the country’s banks remain vulnerable even after Madrid moved to increase the banks’ cushions against potential losses from real-estate loans.

[…]Italy, saddled with EUR1.9 trillion ($2.44 trillion) debt, has signed onto the EU’s fiscal compact that sets strict limits on the country’s deficit levels. In recent weeks, Mr. Monti has begun pressing Germany to give Italy more fiscal slack to stimulate its economy and create jobs. Mr. Monti has recently proposed that the EU create special exemptions to the budget rules when countries target their public spending on projects like broadband investments and infrastructure.

Moody’s downgrades come after the ratings firm in February placed various ratings of 114 financial institutions in 16 European countries on review for possible downgrade, highlighting the region’s banks’ vulnerability to the euro-zone sovereign debt crisis.

Moody’s is expected to follow the downgrade of Italian banks by cutting the ratings of Spanish banks. By the end of June, more than 100 European banks, as well as Wall Street giants like Bank of America Corp. (BAC) and Citigroup Inc. (C), are likely to have ratings that are at least one notch lower.

[…]Moody’s also alluded to J.P. Morgan Chase & Co.’s (JPM) recent disclosures of more than $2 billion in trading losses as a reminder of potential problems lurking at some European banks.

“Recent events highlight the risks for creditors from potential weaknesses in governance, controls and risk management, especially at some smaller, privately-held banks,” Moody’s said in its news release.

Moody’s says it will conclude its reviews by the end of June. In coming weeks, major U.S. financial institutions, Bank of America Corp., Citigroup Inc., Goldman Sachs and Morgan Stanley are likely to face downgrades.

Banks in Austria and Sweden are expected to see downgrades after Spain.

Italy’s debt is $2.44 trillion, ours is nearly $16 trillion.