Monday, April 25, 2011

Distraction Time (Syria)

The White House "reminds" us that its hypocrisy on the Syria/Libya issue is not something that should be worried about, as both situations are generally the same.  We'd like to think that intervention in Syria would be as successful as ours in Libya (haha) - but we'll be content it seems with some frivolous sanctions, being they've had such a storied history of turning the tide in every case of their use.  Regardless, talk of military action in Syria and of stepping up pressure in Libya will probably dominate the news this week as the Obama administration tries to do everything it can to distract from the debate over raising the debt ceiling.  Any talk of a Balanced Budget Amendment would be detrimental to their tax and spend eloquently read to us last week off the teleprompters.

China Looms

The International Monetary Fund predicts now that China will surpass the United States as the world's economic superpower in 2016, a mere five years away. If you take the IMF at their word, I'd say their number is not too far off, the news is startling.  A few weeks ago, Herman Cain wrongfully asserted that China held 26% of America's debt (it is actually around 8%) but both Mr. Cain and the IMF's numbers are dancing around the issue: that our national debt, the impending national crisis, cannot be ignored for much longer.  Markets have reacted to the news timidly.  People don't know whether now to bank on a financial collapse or to get out of the way for one.