While the USA Republicans scratch their heads over the bewildering dropping markets in the world as they received 98% of what they wanted according to House Speaker Boner, that lie alone is enough to send most BEARS running for cover.
Now is not the time for Bulls in the market. It just isn't.
The Debt Ceiling Circus conducted by the Right Wing of the USA House of Representatives was more than the global markets could withstand in the biggest scare since October of 2008. No one can ask investors to do that all over again. Their confidence in any possible recovery around the globe has been sharply shaken. More shaken than the earthquake and resultant tsunami in Japan. No lie. The circus in the USA House was terrible when considering this wasn't about policy, it was about ideology. Policy everyone understands, ideology is stupid.
Perhaps to realize the anger the global community is reacting to comes best from the Prime Minister of Russia.
"The US is a Parasite (click here)
Aug. 1 2011 - 11:34 pm
2,471 views
Russian prime minister Vladimir Putin said the US was a “parasite” on the world economy, newsire Ria Novosti reported Monday.
Speaking at a Russian political youth camp, Putin said the US consumer relies too much on debt. The country “lives beyond its means, taxing the global economy with its problems and living like a parasite off the global economy and the monopoly of the dollar,” he said.
At the same time, Putin said the US took a “balanced” decision regarding the debt ceiling and noted that without Washington’s approval of the budget bill, the world economy would have stalled.
I believe the financial markets are beginning to come to terms with a paradigm shift. It is coming because the USA is still again proving it is a juvenile in its political content and not an adult.
Personally, Russia may be frustrated with the USA and its 'above it all' shenanigans but in all honesty in realizing Russia and China purchase USA Bonds and Notes for their stability, the USE of those foreign monies in foreign affairs has be made these two communist giants angry. The truth of the matter is the monies China and Russia pour into US securities could be used by them to conduct their own foreign policy rather than US foreign policy. Those monies are coming into the coffers of the USA and distributed globally to promote US policy abroad. China and Russia if they withheld their 'interest' in US securities could promote their own foreign policy rather than allowing US foreign policy to dominate the global content.
To some extent, that is echoed in the Russian Prime Minister's statement. BUT, Russia is always more interested in stable states rather than instability and owning a 'piece of the US' is also reassuring to their policies with the US. It provides continuity in the dealings with the USA when a country is a 'percentage' shareholder in its policy.
So, that said, the hideous Big Top covering the Capital Dome on the House side has seriously shaken the confidence in global markets and that is still reflected in the Asian markets that opened a short time ago. This is more than an 'adjustment' to the global economy due to a 'rough ride.' It is a PUSH toward finding better solutions for the use of 'CAPITAL' in the world. I seriously believe with such a earth rattling event as what occurred in DC over the past three months the global monetary system is in serious trouble.
