There's so much to reckon with - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 25 November 2010
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There's so much to reckon with A  A  A

Baltimore, Maryland

Thanksgiving Day

Yes, dear reader...we are on the job. Reckoning away....

And we are spoiled for choice this morning...so much to reckon with.

First, let's begin with the US stock market. Up...down...up again. The Dow rose 150 points yesterday. Gold fell $4. What does that tell us? Nothing...

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Meanwhile, in Europe, poor Ireland is suffering. On Wednesday, it agreed to further spending cuts...and to higher taxes too. Talk about austerity...! These guys will do practically anything to protect their bankers.

Bloomberg;

"Ireland's government said it will cut spending by about 20 percent and raise taxes over the next four years as talks on a bailout of the country near conclusion."

"Welfare cuts of 2.8 billion euros ($3.8 billion) and income tax increases of 1.9 billion euros are among the steps planned to narrow the budget deficit to 3 percent of gross domestic product by the end of 2014. The shortfall will be 12 percent of GDP this year, or 32 percent including a banking rescue.
"

So far, the Irish people go along...like beasts of burden. Dumbly. Humbly. Fumbly. Whose side is the government on, they must wonder. We watch in amazement...we want to see how far they'll go.

Of course, they're not the only ones who seem willing to put up with anything. In the US, the central bank has pledged to reduce the value of Americans' savings...to cut their real incomes...and make everything they buy more expensive.

Hey, whose side are they on?

A judge in England just handed down a jail sentence to 4 counterfeiters in Leeds. He said the clink was appropriate because the counterfeiters might have "underminded confidence in the system" and "caused a lot of people to lose money."

If you get jail time for that, Ben Bernanke better watch out!

Meanwhile, millions of Thanksgiving travelers got to try out the TSA's new "Grope and Fondle" system of terrorism fighting. Yes, the video proof is all over the airwaves...photos of the TSA patting down toddlers and grabbing crotches...

How much of this will Americans take? We wonder about that too.

Elsewhere, many people have decided they have had enough. Unfortunately, the ones who have had enough were the ones already getting too much - that's right, the zombies.

Here's the story from Associated Press:

DUBLIN (AP) - Anger and fear about Europe's seemingly unstoppable debt crisis coursed through the continent Wednesday. Striking workers shut down much of Portugal, Ireland proposed its deepest budget cuts in history and seething Italian and British students clashed with police over education cuts.

"In Lisbon, strikers all but closed the airport, stranding passengers who couldn't get in or out of the country.

"People have to fight for their rights," Moreira, 51, told The Associated Press. "People have to fight against what is happening."

"Government policies have "sent people into poverty and misery," said union leader Manuel Carvalho da Silva, noting that Portuguese civil servants will see wage cuts averaging 5 percent next year."

"Italian students occupied university buildings and piazzas to denounce education cuts being debated by Parliament, clashing briefly with police in Rome and blocking five main bridges over the River Arno in Pisa.

"In Britain, students decried government plans to triple tuition fees.

"Education is not a rich kid's game," said Tash Holway, a 19-year-old student in London. "If this keeps up, the entire industry will change. It won't be about talent, but only about who can pay."

"Tempers even flared at the European Parliament in Strasbourg, France, where British legislator Godfrey Bloom was expelled from a debate on Ireland's financial meltdown after he called a German legislator an "undemocratic fascist."


So you see, dear reader, there was too much for us to reckon with. We couldn't help ourselves...

More news:

And more thoughts:

*** Oh...and here's something else to reckon with. New home sales took a dive in October. The FHFA has confirmed a "double dip" in the homing market. Prices are weak everywhere and falling in some areas.

And if you leave a house vacant, squatters might move in. Talk about complications! The house next door has been foreclosed. But the paperwork was fraudulent. Who owns it? So who's got the right to expel the squatters?
Don't worry about it. It will work its way out somehow.

*** And on the other side of the globe, they've had enough too.

"Russia and China Ditch the Dollar," says the headline.

It was inevitable, wasn't it? The two said they didn't need no stinkin' greenbacks to do their bi-lateral trade. They can perfectly well work it out in yuan and roubles.

Besides, with the Fed undermining the value of the dollar, who wants to hold it? You could have a few hundred billion one day. And then, the next day you discover that you've lost $200 million - just from holding the wrong currency at the wrong time.

No thanks.

The Russians and Chinese won't be the first. And not the last either. Gradually and suddenly, the world will drop the dollar.

Eventually, Americans will drop it too.

*** "I don't know if I want to be a doctor," said Henry, back from college for Thanksgiving.

"I like the theory and the science of it. But now it's extremely regulated and controlled. And nobody seems to know what the new health care system will mean or where it will end up. I don't know if I could live with the paperwork.

"I'm thinking about sticking with physics."

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

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