Monday, December 12, 2011

Debt unlimited, Inc.

Socialists have a hard time these times.

The new agreement in Europe will try to accomplish, what nobody has been able to so far:  To reign in the politicians so they no longer can spend the money of future generations.

Because of the new EU "fiscal compact":

"would entail establishing a new fiscal rule, under which government budgets would have to be balanced, which would mean that after stripping out one-off revenues and expenditures and the swings of the economic cycle, the structural deficit would not be higher than 0.5 percent of GDP."
The only exception would be for countries with GDP/debt ratio significantly below 60%.


I am not sure it is possible to make to politicians waste any less, but it sure sounds nice.

Behold Mr. Seguro, opposition leader and socialist, trying to keep it out of the Portuguese constitution.  It goes well with the
ideas of his pal: Mr. Socrates.  I also note that in my native country the socialists are pretty upset.  Denmark is not a member of the Euro.  The Danish prime minister, a social democrat, wants to adopt the measures.  Interestingly, the foreign minister is against the "pact".  He is a socialist.  The Danish government includes three parties.  Center left, Social Democrats and Socialists. 

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