Whenever the deadline for my quarterly column in "Inside Business" comes up, my blog tends to get ignored. Yesterday, I turned in the newest column, which will appear in this weekend's edition. Thus, it is time to catch with a number of thoughts for the blog.
First, while this column is about economics and investing, sometimes political issues cannot be ignored, and the tragedy in Tucson is such a case. While it is still premature to blame political rhetoric for the tragedy, it is fair to ask if words have consequences. For someone who writes a good deal, I hope words do have consequences. But, if they do, shouldn't we also expect UN-expected consequences. And, if words do have consequences, doesn't that mean harsher words have harsher consequences?
Second, it was an ugly coincidence that China test-flew its new stealth fighter and publicized it while our Secretary of Defense was visiting. 2010 was the year that China began flexing its muscle, beginning with their capture of the Japanese fishing trawler. Ironically, we borrow $300 million from China EVERY DAY to pay for the war in Afghanistan, which is a far smaller threat to our long term future than China.
Third, back to economics, today's auction of Portuguese bonds went better than expected, suggesting the European debt crisis will not spin out of control . . . today. Normally, a slow-motion train wreck like this is painful to watch, but this works to the world's benefit. Europe has shown a much greater willingness to deal with their fiscal deficits issues that the U.S. Being the home of Austrian economics or "tough love" economics, there is no discussion of tax cuts, like there is in the home of Supply Side economics. The more time the Europeans have, the better.
