Word out of Washington is that the federal budget deficit isn’t as big as the economists said it would be. So, that leaves Congress with some breathing room, to stop worrying about the federal budget and go on with the real work of government, which is to raise money for re-election.
The international finance situation is still a problem, though. The yen has weakened to 100 or so on the dollar, which means the Japanese will be able to sell us. If you want a Toyota, now is the time to get one.
However, if you want to sell almonds to the Japanese, they won’t be able to buy as many as they would if the yen weren’t quite so weak.
The euro is in trouble because of the Greeks and other European nations who want to keep their welfare payments going without paying the taxes to finance them. They want the Germans to lend them money for welfare payments. Well, this will shock you, but the Germans aren’t that dumb.
The same goes for the Spanish. They are about ready to go bankrupt, but they do have a heck of a high-speed rail system, except when it shut down after lunch every day for a siesta.
It is said that Greece is for sale on e-Bay, as is the Mediterranean island of Malarkey. Greece is part of the Common Market, but Malarkey has so far managed to stay within the uncommon market, which may explain why Malarkey is priced somewhat higher than Greece. Malarkey’s claim to fame, as everyone knows, is that nobody lives there year-round, and as a result, a lot of Malarkey is available for sale. Since the island was used as a bombing range in World War II by the English, Germans, Italians, Greeks, Americans, Spanish and Luxembourg, people have been a little wary of setting up permanent households. The economy is based on seasonal employment, in which ruins are manufactured for sale to the Greeks. The Greeks can’t be bothered to make their own ruins any more and borrow from the Germans to pay for the ones they get from Malarkey.
Didn’t I tell you? The international financial situation is indeed problematical.