The Biz of Pacelinebiz

Turning things on end to achieve results!

The Euro Zone – The Ghost of Christmas Future?

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The sovereign debt crisis in the Euro Zone has been averted for now with a Trillion dollar bail out over the weekend. The good April jobs report was overlooked on Friday due to all the fears coming from Europe’s debt crisis.  We created a net 290,000 jobs in April and about 230,000 were non-government related.  March employment was revised up 68,000 to 230,000 net jobs.  February was also adjusted upwards by 52,000 too. 

April’s number was not quite as good as the 400, 000 I was hoping to see but it was still about 100,000 more than the consensus estimate.  According to the household employment survey, which is a cross section of all business not just larger companies, there have been an amazing 1.6 million jobs created since the beginning of the year.  That number annualized is 4.8 million jobs which is much better than most expect and the economy is just heating up now! 

My real point to today’s blog is to call attention to the crisis in Europe over their debt to GDP ratio.  The socialist programs that are now being geared back with “Austerity” programs are causing riots and fatalities in Greece.  They are upset that the retirement age may have to go up from 55 to 57!  The big government freebie approach is falling apart before our eyes in Europe while we are moving closer to the European model.  If we do not reign in our recently explosive deficits, what we are seeing in Europe will be happening here soon enough.  We have already seen social security payments begin to exceed social security receipts so the problem is at our door step. 

I hope our government can learn a lesson from the crisis in Europe.  We still have enough problems in our nascent recovery without adding to it by continuing the massive expansion of government.   Perhaps the Euro Zone is doing us a favor by being a harbinger of our future.  Now is the time to wean off of stimulus and get our house in order.

 Have a good week.


Written by pacelinebiz

May 10, 2010 at 10:10 pm

One Response

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  1. Nascent – that is a new word for me. Thanks

    Kathy Murauskas

    May 12, 2010 at 3:58 pm

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