Charles Payne, a FOX Business financial analyst and conservative in New York City, opines about the economic status of various countries: "You know it says a lot when a country that has lived with communism and socialist economics votes against arguably the most attractive politician on the planet in favor of a platform that includes tax cuts to pull it out of recession. Or course, the outcome of the election in the Ukraine could go on for days, but I think that it speaks volumes, and I bet we will see sweeping election shifts in Europe as these nations come to grips with the fact that there is a limit to how much governments can do through borrowing and taxing its citizens and businesses into submission. The vote counting continues, and there will be legal maneuvers, but the message is clear...there is nothing sexier than lower taxes."
He continues his commentary: "There was an election held on the same exact day halfway around the world from the Ukraine. Yes, this shift away from leftwing politics isn't an isolated occurrence. Just last month the rightwing conservative candidate won election to the presidency of Chile, ending the leftwing rule in place since 1990. Here is a nation that has tremendous riches from copper (prices up +140% in 2009) and yet felt the need to get a businessman to enhance prosperity. Billionaire Sebastian Pinera made his fortune introducing credit cards to Chile. Credit cards, could you imagine anyone from that industry, let alone a pioneer in that business, running for any office in America? Mr. Pinera promises to be tough on crime and create a million jobs (as opposed to saving jobs...I hope). Interestingly, Chile isn't the economic basket case of its socialist cousins in Europe, where double-digit deficit to GDP figures loom like giant anvils over the continent. According to EDC, Chile's deficit to GDP was 4.2% or $7.22 billion at the end of 2009. GDP probably declined 1.9% in 2009, and should rebound to 2.3% growth this year. The country put forth a stimulus program of $4.5 billion or 2.8% of GDP. Their plan required private banks to lend money. According to the CIA, Ukraine's GDP declined 14.1% but could rebound 3.5% in 2010. Inflation is running rampant, however, at 16.5%. These countries possess great resources and their citizens should be better off, which is why they voted the bums out."
More commentary from Mr. Payne: "In the meantime, the so-called PIIGS (Portugal, Ireland, Italy, Greece, and Spain) continue to weigh on financial markets around the world. You know I read over the weekend where some firm, I think Barclays, has prohibited its analysts from using the PIIGS acronym. I guess not using the term is the same as putting lipstick on the problem. Oh boy, political correctness in the eye of the storm. The fact is that there would be a few pigs that would take exception to being associated with the slop. Yesterday, CDS rates rallied to record highs for Portugal, Spain, and Greece."
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Beauty And The Beast
