MALI

 

Harper is right to keep Canada out of a ground action in Mali – no good will come of it, just as it failed to materialize in Viet Nam, Iraq, and currently Afghanistan.

The bad guys simply wait us out.

That is not to say we just roll over in the face of terrorist aggression.

We need to support the locals in all ways we can short of providing ground troops.

In the case of Mali, it is really up to neighbouring African nations to get involved since they are all faced with the same prospect of an Al Qaeda take over.  We in the west can and should supply equipment / weaponry.  Moreover, we should blast the terrorists from the air at every opportunity.

In the end, this will work and terror will be defeated until the next time.  And when the next time comes – as it certainly will – we blast them from the air all over again until they get the message.

As I see it…

‘K. D. Galagher’

The US Economy Will Go Off A Cliff …

 

Sooner than later ..but it will not be the fiscal cliff that currently consumes so much of American News.

Indeed, in an earlier Blog I labelled the latter Cliff a Hoax and suggested strongly that the best thing that could happen to the good old US of A would be for it to take the jump a.s.a.p..  It calls for both Tax increases and Spending Cuts – which is exactly what America needs – despite the fact that the Republicans are opposed to tax increases and the Democrats are opposed to spending cuts. 

In that regard, they both end up being wrong.

The fiscal cliff I am now speaking about has yet to arrive albeit, it is well on its way.

But before I get further into today’s blog, first a word on moving …It Sucks.

We are in the midst of a move and it is one tiring ordeal.  I would not wish it on any one; stay put if you can.

Now back to the Day’s Subject.

There is only so much money available in any given country.  Moreover, that money is generated by the private sector in spite of the fact that one of its biggest users are the country’s governments; municipal, state and federal … such as is the case with the US.  Simply stated, the more money government takes, the less business has for use in creating more wealth – i.e. to increase the size of the pie.

The Federal Debt now stands at 16.5 Trillion Dollars and continues to rise at a record pace.  The first fiscal cliff was all about giving the Feds the authority to increase this debt ceiling further.  It failed miserably in addressing the real problem – Government has grown too big / too expensive.

Expenditures will continue to exceed revenues despite plans to tax the rich more.  Added to that is America’s (plus Europe’s) reckless printing of money

These twin evils will eventually result in spiralling high interest rates which together will severely devalue their currency. 

In the short term, this might even prove a boon to the US as consumers and businesses alike rush to get rid of their devaluing dollars in a bit to purchase hard assets such as real estate and production equipment. Stock Markets too can be expected to rally – as they are now – with investors focused on owning stocks rather than investing their savings in vehicles that pay ridiculously low interest.

But the longer view will see this spending collapse in the face of high interest rates and currency which in worth less.  

The only one that can stave off this dreaded prediction is the recently re-elected President of the United States and for whatever reasons, he is unable to to do so. By the time he wakes up to this, it will be too late. 

Indeed, I suspect the US has already crossed the Rubicon.

As I see it…

 

“K. D. Galagher’