Is Socialism Dying a Slow Death? let's Keep Our Fingers Crossed!

I think it is starting to sink in, that socialism does not work and has led to what we are seeing the world over.  Economies in distress because of a few countries who have for generations lived off the government.  This needs to be corrected by all, especially in the U.S. where things are looking really bad.  Here in Canada, we must find a way for Quebec and the Maritimes to stand on their own.  Live within their means, balance budgets and stop looking for handouts from Ottawa and the rest of the country.  It should be law that every government in our dominion has to put forward a balanced budget, no matter what the economy is doing.  Just like families, when things are tough you tighten the purse strings, we should expect no less from our governments!

Italy speeds up austerity to calm financial nerves

By Dario Thuburn (AFP) – 1 hour ago  

ROME — Italy will speed up a package of austerity measures approved last month to achieve budget balance by 2013, Prime Minister Silvio Berlusconi said Friday in a fightback against a wave of financial market panic.

"We believe it is opportune to accelerate the measures... to reach a budget balance early -- in 2013 instead of 2014," Berlusconi said at a news conference.

"We are responding to the demands of markets that are governed by no-one, not even speculators, and operate independently from economic reality," he said.

"We have to recognise that the world has entered a global financial crisis that concerns all countries," he added.

Italy's main centre-left opposition Democratic Party warned that the speeding up of austerity cuts was "irresponsible." Berlusconi's critics say the measures hit Italy's poorest hardest by reducing social welfare payments.

Berlusconi said lawmakers would be called back early from summer recess to start working "immediately" on measures including a constitutional amendment that would force Italian governments to keep balanced budgets.

The amendment -- similar to one in force in Germany -- was announced by Berlusconi after emergency talks with trade unions and big business on Thursday.

"International speculators are paying particular attention to us and we have to put a stop to it," he said on Friday.

Economy Minister Giulio Tremonti meanwhile said the government would also present some major labour market reforms to trade unions and big business.

"The labour market is fundamental for development and investments," he said, adding that there would be a crackdown on a variety of tax exemptions.

Italy has been badly hit on the stock and bond markets in recent weeks by investors concerned about its high public debt, anaemic economic growth, as well as signs of tensions within Berlusconi's centre-right coalition.

Italian shares plunged 13.12 percent this past week, although market rumours that the European Central Bank was intervening to support the highly vulnerable markets for Italian and Spanish bonds helped stem the slide on Friday.

Italy's parliament last month adopted a four-year 48-billion-euro ($68-billion) austerity budget aimed at cutting the public deficit from 4.6 percent of output last year to just 0.2 percent by 2014.

The plan, which included deep cuts to regional subsidies, family tax benefits and top-tier pensions, was heavily criticised by many commentators for delaying by far the most painful cuts until 2013 and 2014.

The mandate of Berlusconi's centre-right government runs out in 2013.

The 74-year-old prime minister's motorcade was met by around 100 protesters outside government offices in central Rome as he arrived for the news conference.

"Clown!" one man shouted. Another said: "You are the ruin of Italy, go home!"

Berlusconi also told reporters he had agreed with French President Nicolas Sarkozy on holding an emergency meeting of G7 finance ministers of leading world economies in a few days to discuss the debt crisis ahead of a possible G8 summit.

France holds the presidency of the G7, G8 and G20 economic powers.

A spokesman for Berlusconi, Paolo Bonaiuti, later said that the prime minister's comments were part of an "ongoing reflection" and did not mean that "a decision has been taken" on the international meeting.

Copyright © 2011 AFP. All rights reserved.

Canada EU Free Trade Deal Close At Hand

Canada on track to clinch EU free-trade deal, Tories say

STEVEN CHASE

OTTAWA— Globe and Mail Update

Published Friday, Jul. 15, 2011 9:28AM EDT

Last updated Friday, Jul. 15, 2011 11:01AM EDT

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The Harper government says it's successfully concluded an eighth round of free trade negotiations with the European Union and is on track to clinch a deal by 2012.

During discussions in Brussels this week, Canada and the 27-member country EU traded offers to open up their respective markets in the fields of goods and government purchasing.

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International Trade Minister Ed Fast described the eighth round as having made “important progress” toward an agreement.

Canadians officials are declining to release details on what this country is offering the EU in terms of greater access to Canada's markets, saying public release right now would harm Ottawa's negotiating position.

Mr. Fast however hinted that Canada is prepared to offer the Europeans significant concessions, calling both sides' offers on goods and government purchasing “ambitious” in scope.

He tried to assure Canadians however that Ottawa will come away from the table with gains, rather than losses, for employees and businesses in Canada.

“These negotiations represent our most significant trade initiative since the North American Free Trade Agreement, and our government is vigorously defending Canada's interests to ensure that any agreement we sign benefits Canadian workers, businesses and their families,” Mr. Fast said in a prepared statement.

A Canada-EU joint economic study, released in October 2008, predicted that free trade agreement between the two jurisdictions could boost Canadian economic output by at least $12-billion annually and bring gains for the country's industries, from aerospace to wood products.

Mr. Fast said a ninth round of FTA talks will take place in October. Before then, however, Canada and the EU will exchange offers on opening up their respective services and investment markets to each other.

During the 2011 federal election campaign, Prime Minister Stephen Harper promised a Conservative government would sign free trade deals with the EU by 2012 and India by 2013

Since taking office in 2006, the Conservatives have made it a priority to pursue trade deals that give Canada preferential access to new markets, an area where two previous Liberal governments failed to make major headway.

In four years, the Harper government concluded new trade agreements with eight countries and conducted negotiations with close to 50 others (including the 27 members of the European Union).

Under the Chrétien and Martin governments, talks began on seven new free-trade agreements and several investor protection deals. But they completed few; the last free-trade deal signed under the Liberals was Costa Rica in 2001.

The Tories have been intent on boosting non-U.S. trade so that Canada is not quite so heavily dependent on one market – a goal shared by many past governments that ultimately failed to accomplish this.

They're also trying to stay ahead in the worldwide race to clinch special trade arrangements in light of the fact that global talks to accomplish the same thing on a broad basis have foundered for years.

More Trouble in Europe, Portugal Downgraded, is Ireland Next?

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Ireland May Be Next State to Face Junk Rating After Moody’s Cuts Portugal

Again, we are talking about too many pigs at the trough, why is it so hard for people to see what they are doing does not work?  The rest of Europe(for the most part) is still following the same path as these nations and could end up being in the same situation as they are.  Pensions and benefits have to be cut back drastically or this will continue.By Finbarr Flynn - Jul 6, 2011 7:37 AM CT

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Ireland has been locked out of markets since September, and the yield on 10-year Irish bonds climbed to 12.44 percent today, a euro-area record for the country that agreed to a rescue package with the European Union and International Monetary Fund last November. Photographer: Aidan Crawley/Bloomberg

Ireland’s credit rating may be cut to junk by Moody’s Investors Service after Portugal yesterday lost its investment grade rating, according to analysts.

Moody, which slashed Portugal to Ba2 from Baa1, in April lowered Ireland’s credit rating to the lowest investment grade Baa3 and left country’s outlook on negative.

The ratings company cut Portugal’s rating in part because the nation may not be able to return to debt markets in the second half of 2013. Ireland has been locked out of markets since September, and the yield on 10-year Irish bonds climbed to 12.44 percent today, a euro-area record for the country that agreed to a rescue package with the European Union and International Monetary Fund last November.

“If not re-entering the public funding markets has significance for a sovereign’s rating, then clearly if our view proves correct, then Ireland will suffer an imminent downgrade,” Cathal O’Leary, head of fixed income sales at Dublin-based NCB Stockbrokers, said in a note today.

The yield on Irish two-year notes climbed 239 basis points to 15.27 percent as of 2:35 p.m. in London, the first time it has been above 15 percent.

The downgrade of Portugal highlighted “contagion risks” for Ireland, Goodbody Stockbrokerssaid today. Moody’s said potential investor involvement in a new Greek bailout makes it more likely the EU will require creditors to eventually contribute to aiding the Portuguese.

Portugal joined Greece as the second euro country rated non-investment grade by Moody’s, which suggested the government may struggle to meet the terms of its bailout.

Troika Arrive

Ireland is achieving the targets of its rescue agreement, Irish junior minister Brian Hayes said in an interview with Dublin-based broadcaster RTE, ahead of planned talks today with representatives of the rescue partners.

Representatives of the European Central Bank, International Monetary Fund and European Commission, the so-called troika, are in Dublin today for the quarterly review of Ireland’s bailout.

“The important point is that we are on target,” Hayes said in the interview. “The key task is to get out of this program.”

Finance Minister Michael Noonan said yesterday he may seek a bigger budget correction than the 3.6 billion euros planned for 2012, to ensure the government meets its target of narrowing the fiscal deficit to 8.6 percent of gross domestic product next year.

“Ireland may not be treated in the same manner as Portugal,” Conall MacCoille, an economist at Dublin-based securities firm Davy, said in a note today, citing the government’s progress in meeting its deficit goals.

To contact the reporter on this story: Finbarr Flynn in Dublin at fflynn3@bloomberg.net;

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net