Tag Archives: International Monetary Fund

TRADE WAR LOOMING

Consternation has been expressed this week that the US currently has no Ambassador to South Korea, at a time when war between the US and North Korea is a definite possibility.  Nothing has been said about the fact that the US has no Ambassador to the European Union, also at a very critical time.

On Sunday, in a British television interview, President Trump described the EU’s trading policies as “unfair” to the US and threatened increased tariffs on imports from the 27-member nation trading club.

The US president, Donald Trump, claimed in an interview with ITV broadcast on Sunday that the EU had been “very unfair” on American exporters, and that it would “morph into something very big” that would “turn out to be very much to [the EU’s] detriment.”

Washington is currently examining the case for protecting US economic interests on national security grounds, including the imposition of import tariffs on aluminum and steel.

Responding to Trump’s comments, a spokesman for the European commission told reporters in Brussels that the EU was ready to hit back if its importers were made to suffer.

The spokesman said:   “For us trade policy is not a zero sum game.  It is not about winners and losers.  We here in the European Union believe that trade can and should be win-win.

“We also believe that while trade has to be open and fair it also has to be rules-based.  The European Union stands ready to react swiftly and appropriately in case our exports are affected by any restrictive trade measures by the United States.”

(“Brussels prepared for trade war with US if it restricts EU imports,” Daniel Boffey, The Guardian, 29th January, 2018).

There is an assumption in the United States that America is the biggest trading power in the world and can dictate to others when it comes to trade.   This may not be the case.

“The adjusted GDP of the 28 EU member nations is bigger than both China and the US, the traditional list of world’s economic super powers.

“In nominal U.S. dollar terms, the European Union (plus Norway, Switzerland, Iceland) accounted for 25.4% of world output in 2014 according to data from the International Monetary Fund.  That was greater than America’s share (22.5%) and well in excess of China’s—13.4%,” said Quinlan.

(“Europe is bigger than the US”, Bob Bryan, Business Insider, 30th June, 2015).

These facts will have changed in the 2 ½ years since this was written. When the United Kingdom leaves the European Union next year, the figures will need to be further adjusted.   But the figures do convey that the US, the EU and China are each roughly on a par when it comes to the size of their economies.

What is not conveyed here is how powerful the European Union is through its trading agreements.   Whereas the US has twenty major trading partners, the EU has eighty.   These countries will all likely side with Brussels if a trade war worsens.

Nobody is likely to benefit from a trade war.   The latest tariffs the US imposed on Chinese washing machines, for example, will increase the cost of purchasing a washing machine in the US.   This will apply to thousands of products as tariffs are increased by all three economic powers.

There’s a lesson from history here.  The Smoot-Hawley Act, passed by Congress in 1930, raised tariffs on over 20,000 items imported from other countries.   One side effect was that US trade decreased by over 50% increasing unemployment.   This period became known as the Great Depression.

The first shots have been fired in a new trade war.   It’s not likely that the US will come out ahead here, certainly not in the long term.   Putting “America First” will mean the rest of the world coming together in a renewed commitment to globalization, leading to the new global economic system predicted in Revelation 18.

Note the following just after Angela Merkel’s speech to the World Economic Forum in Davos:

“German Chancellor Angela Merkel insisted on Wednesday “protectionism is not the answer” to world problems, addressing the Davos economic summit before US President Donald Trump appears to defend his “America First” agenda.

“We think that shutting ourselves off, isolating ourselves, will not lead us into a good future.   Protectionism is not the answer,” Merkel said in a speech in the Swiss resort.

She spoke a day before the arrival of the US president whose aggressive trade policies have raised concern among defenders of globalization.

“Let us not shut off from others, let us keep pace with the best in the world and let us canvas for this multilateral approach,” Merkel said.”

———————————————————————-

Headline in WIN (World Israel News)

German FM in Israel rejects US Jerusalem move, warns of European ‘frustration’ (1st February)

During a visit to Israel, German FM Sigmar Gabriel blasted those who oppose a Palestinian state, demanding a two-state approach to the Israeli-Palestinian conflict.

———————————————————————— 

DARKEST HOUR

We went to see “Darkest Hour” recently.   Although not perfect, the movie is a fairly accurate attempt at showing what Winston Churchill was up against when he suddenly became Prime Minister in May, 1940.  Forgotten now is how close Britain came to being invaded by Hitler’s armies.   The future of the world depended on what was to follow – if the UK had fallen, other nations would have had to sue for peace on Hitler’s terms.   Those “other nations” included the United States, which was totally unprepared for war in 1940.

Britons like to say that they “stood alone” against Hitler.   Certainly, in Europe that was true.   But forgotten now is a simple fact:   at the time, Britain ruled a quarter of the world’s people.   All these nations fought with Britain.   Two and a half million Indians were in the British Army, plus hundreds of thousands of people from Africa and the Caribbean.   Additionally, the British dominions (Canada, Australia, New Zealand, South Africa and Southern Rhodesia) played a major role.

In the event of another threat to Britain, none of these countries will be likely to come to her aid.

Watching the movie, you can also see clearly the similarities with today.   Whereas, in 1940, Britain was faced with an enormous military threat from Germany, today it’s an economic threat – from the German dominated EU.   As the Brexit negotiations continue, the EU has the advantage, because the Brits are allowing them to.  There seems to be a lack of backbone in standing up to Brussels, Berlin and Paris.  The FT’s Philip Stephens today described the mess as “Britain’s nervous breakdown.”

Sadly, there is no Winston Churchill waiting in the wings!

———————————————————————————

Note the following headline from the British Daily Express newspaper following an incident were young leftists stormed the Churchill café, screaming that Churchill was a racist.   Nigel Farage is the man who led the Brexit campaign.   Churchill was an Empire-loyalist, an unforgiveable sin in today’s Britain!

“Nigel Farage TEARS APART ‘pig-ignorant’ lefty gang who terrorized Churchill café.  NIGEL FARAGE aimed a furious tirade in the direction of a group of protesters who burst into a Winston Churchill-themed cafe in London while chanting Britain’s wartime leader was a “racist.”

—————————————————————————

TRUMP’S AFRICA

You will remember that Donald Trump reportedly described African countries as “****hole countries.”

At least two countries on the Dark Continent are capitalizing on this.

Namibia is promoting tourism with posters proclaiming that “Namibia is Africa’s Number One ****hole country.”

Namibia is not the only country to take advantage of Trump’s words.

According to the Wall Street Journal yesterday, “A Facebook page run by a marketing group promoting tourism in Zambia – famed for the Zambezi River that feeds the spectacular Victoria Falls – includes a slogan welcoming visitors to “****hole Zambia.”   “Where beautiful vistas and breathtaking wildlife are our Trump card!” says an accompanying post.

—————————————————————–

FOR FUN!

Some entertaining posts on FaceBook . . .

 

Advertisements

CONFUSION REIGNS!

 

Captain America

Last Sunday evening I was humbled.

I decided to take all four granddaughters to the latest “Captain America” movie, which began at 7.15pm.   I sat there through over two hours of film, not comprehending what was going on.   I was totally bewildered.

Leaving the movie theater at 10pm, we all drove home in my daughter’s RV.   It was very dark outside.   I was driving as all the girls are 9, 10 and 11.

Suddenly, a voice in the back yelled out, “Will my dad be up this late?”

I shouted back, “Which dad?”  Two of the girls belong to our son, Kurt, and two to our daughter, Alix, and her husband, Mike.   And they all have similar-sounding voices.

“MY dad!” was the response.

Again, I asked, “Which dad?”

This time, two girls shouted back,  “OUR dad!”

“Look,” I said, “I can’t see who is asking and there are two dads here. There’s Kurt and there’s Mike.  Which dad do you want?”

This time, the response was clear.   “Kurt.”

Silence followed for a few seconds, then I heard our nine-year-old granddaughter, Elena, turn to her sister and cousins and observe: “I’ve heard that when people are old, they get very confused!”

—————————————————————————

Perhaps there is some truth to that.

Hillary Rodham Clinton is a few years older than me and said something last week that showed she is very confused.   Either that, or she was deliberately misleading people.

She said in a speech that Donald Trump’s call for an end to Muslim immigration would increase terrorism.

If this is true, how does she explain Japan?   They have received no Muslim immigrants – and have experienced no Islamic terrorism!

—————————————————————————

There was no mention on any news program of the religious background of the man who killed the UCLA Professor a few days ago.   Earlier, he had also murdered his ex-wife.   A “hit list” found at his home showed he intended to kill two professors but the other one was gone for the day.

The man, Mainak Sarkar, was a Bengali immigrant.   Bangladesh is a Muslim country.

Once again, we see the need for a complete overhaul of the rules relating to immigration and naturalization.   Confusion (Babylon) has been the result of the last fifty years when it comes to immigration.

————————————————————————–

There’s also a lot of confusion over in England, too, over the EU Referendum taking place on June 23rd, less than three weeks away.   The debate has gotten nasty and the country remains very divided.

It’s becoming the norm for foreign leaders to butt in.   US President Obama, Mrs. Clinton, and Donald Trump have all expressed their opinion.   Mr. Trump has brought forward his visit to the country by two days, now arriving the day before the vote, rather than the day after.   The head of the International Monetary Fund, the German Chancellor, and European Union bureaucrats are all warning of disaster if the country leaves the EU.

Although there are peripheral issues, the fundamental question is: do the British people want their country administered from London or Berlin?   75 years ago, Winston Churchill knew the answer.   Does England need another Churchill to figure it out?

A very important secondary question is: do the British people want their country to remain British, or become a European mix?   The EU’s open borders have led to millions of people from other EU countries flooding into the UK, for its more generous welfare benefits and it’s better economy.   There’s nothing can be done about this as long as they remain in the EU.

The future of the UK is certainly at stake.

The worst possible result is a close vote, with the majority of Scots voting to “Remain” (in the EU) and the majority of English voting to “Leave.”   This would lead to Scotland calling for a second referendum on independence from the UK.   Going it alone could work with help from Berlin and Brussels, the capital of the EU.

It would mean the end of the United Kingdom.

In today’s world where only money seems to matter, I don’t think anybody really understands the full implications of this. “Grey hairs are here and there upon him, and he knows it not.”   (Hosea 7:9).

It’s not just the elderly who are confused!

——————————————————————————-

A final comment on the US presidential election comes from our 11-year-old granddaughter, Paris, who was half-watching the news with me.   Following the usual five-second sound bite from both Trump and Hillary, she suddenly asked:   ‘Why do we have to have a president anyway?   Whey can’t we be like other countries, with a king or a queen?”

After watching this election, it’s no wonder she’s confused!

 

UNCERTAIN DEALS

Map for deals

Two current international “deals” may yet amount to nothing.

The European Union’s latest deal with Greece, the third bailout of the country in the last five years, may yet fail.

The Greek government may not be able to get the agreement through parliament as it is only going to make austerity harder for the Greek people.

Four bills need to be passed in the next twenty-four hours.   Pensions must be cut; taxes increased; the defense budget slashed and steps taken toward privatizing ports and other government owned enterprises, which it is hoped will cut corruption and make things more efficient.   As the ruling party, Syriza, is very left-wing, there’s a good possibility the parliament will not approve everything.   The Greek population voted against further austerity less than a month ago.

There is concern, too, beyond Greece’s borders.   European creditor countries are fully aware that, even if the Greek parliament approves the agreement, they may not keep their word.   It’s happened before.   This would mean that, in a few months, Greece will be back, asking for a further bailout.

A further set-back occurred this morning when the International Monetary Fund (IMF) announced that Greece’s debt was “unsustainable” and that the country needs a much greater infusion of cash from the EU.   The EU bailout deal has, at least, united all concerned in the conviction that it won’t work!    The Greek problem is not about to go away.

Then there’s the deal between six western powers and Iran.

The British Guardian Weekly wasn’t sure which deal to put on its front page, Greece or Iran.   Right up to the last minute, Greece was going to be the leader, but then the deal with Iran came through.  The paper decided that the Iranian deal was the more important one, with far reaching implications.   But both deals could have both short-term and long-term negative consequences.

On Iran, the headline on the Fox News website was: “Win for Putin?” Putin has been supportive of Iran, Syria’s Assad and Shi’ites in general.

It’s certainly a win for Iran, which can look forward to the lifting of international sanctions.

The best the West can hope for is that this will buy time, that Iran will not develop nuclear weapons for at least the next ten years, by which time, democracies being as they are, none of those signing the agreement today, will still be in power.   They can, as with so many things, kick the can down the road.

However, even if this presupposes Iran will keep its side of the deal.   That’s no more likely than Greece abiding by the terms of the EU bailout deal.

Anyway, it doesn’t really matter what the West thinks about the Iranian deal.

Israel’s prime minister has described the deal as “a mistake of historic proportions,” that it endangers his country.   He added:  “the more you read it, the worse it gets.”   Iran has been screaming “Death to Israel.  Death to America,” for over 35 years.   A recent demonstration in Tehran showed mobs screaming the same again. Perhaps nobody in Washington has been watching!

But, even Israel is not the country most concerned about the agreement.   The Sunni Arab states are.   Almost certainly, they will see through this agreement and their fears of Shia Iran acquiring nuclear weapons will lead them to acquire the same.   It may take a few years, but they will be driven by a great sense of urgency.   Saudi Arabia, Turkey and Egypt are the three countries most likely to pursue their own bomb, with immediate help from Pakistan, which already has the bomb.   Saudi Arabia certainly has the money for this.

The greatest threat to world peace remains the Sunni-Shia conflict, a struggle that has continued for over thirteen centuries.   Although an Obama Administration spokesman expressed the hope that the Iran deal would help bring a resolution to the ancient conflict, this is at best naïve.   Nothing will end the conflict until the Messiah comes and sorts out the religious mess that is today’s world. Meanwhile, the US will be seen as siding with the Shi’ites against the Sunnis.   Tehran and Damascus must be celebrating at this development.

The Iranian deal brings to mind I Thessalonians 5:3 :  “For when they shall say, Peace and safety; then sudden destruction comes upon them, as travail Upon a woman with child; and they shall not escape” (KJV).

Thankfully, Jesus Christ is returning to end the spiritual confusion. “And unless those days were shortened, no flesh would be saved; but for the elect’s sake those days will be shortened.”  (Matthew 24:22).

SYRIZA WINS GREEK ELECTION

Alexis Tsipras

In the last few weeks we’ve developed a taste for Kerrygold butter, which comes from Ireland.   Diane did the research – Kerrygold and Anchor (from New Zealand) are the two healthiest butters you can buy.   The milk comes from “happy” cows!

Unfortunately, Kerrygold costs more than regular butter.

In theory, the price should have come down recently as the euro has fallen in value against the US dollar.   It now takes only $1.11 to buy a euro; it was twenty-five cents higher fairly recently.   Ireland uses the euro, so the price of everything they produce should have come down with the lower value of the euro.   But the price of Kerrygold has not fallen – in fact, it’s gone up by 50 cents for half a pound.   (We can’t buy Anchor in Lansing but it, too, should have fallen in price as the US dollar has risen.)   Not only has the euro decreased in value, transportation costs have also fallen with the drop in the price of oil.

My favorite beer also comes from Ireland.   I don’t buy it as often as butter (you will be pleased to know) but I’m hoping that the price has not similarly risen.

Sometimes, there’s no logic when it comes to money and exchange rates.   All money today is built simply on confidence.   The value of the dollar and the British pound usually rise when there is great turmoil in the world – people around the world have more confidence in the two older democracies, which have a longer record of stability.   When the euro was launched in January 1999, its’ value was $1.1743. It reached its highest rate against the dollar in July, 2008, when it took $1.6038 to buy a euro.   This was at a time when confidence in the US currency was low.   It’s now almost a third less against the greenback.

Monday will likely see a further fall in the value of the euro, so perhaps I should expect Kerrygold to go up in price again, when it should, in fact, come down.

The reason that the euro will likely drop further in value is the Greek election held today, Sunday.   The “very left-wing” party, Syriza, has been voted into power.   The party campaigned on a promise to end austerity, imposed on the country for its extreme profligacy.

The party leader, Alexis Tsipras, rather naively hopes that he can cut Greece’s debts by 50% in a new deal with the troika (the European Central Bank, the European Union and the International Monetary Fund).   If that fails, withdrawal from the eurozone is a definite possibility.   Other members may even encourage Greece to leave before they do greater harm to the single currency.   Withdrawal would enable Greece to have its own currency.   They could then print money and print more money and then even more money . . . you get the picture.   This would not, of course, solve their problems but it might give them a temporary high.

Spain is watching developments in Greece closely.   The Spanish economy is a lot bigger than Greece’s.   It has also been going through a long period of austerity for the same reasons as Greece.   The Podemos (“We can”) party is Spain’s equivalent of Syriza.   It, too, could win the next election, due later this year.

Germany is unlikely to approve any deal for Greece that absolves them of debts owed to German taxpayers lest Spain make the same demand.

The eurozone is not really in danger, though Greece and Spain could certainly withdraw from the currency union.   Other profligate countries could follow – Italy and Portugal, for example.   Corruption is a big problem in all four countries.   Mr. Tsipras has promised to do something about it, as have other earlier prime ministers.

Nineteen countries are now members of the eurozone.   Six other European countries also use the currency.   Outside of Europe, remaining overseas territories of European countries also use it. Additionally, 210 million people worldwide use currencies pegged to the euro, including 182 million Africans.   This makes the euro the most used hard (convertible) currency in the world.

Expect further turmoil in world financial markets as well as possible changes in the composition of the EU, though few on the continent of Europe seem to want that, at this point in time.   The EU and the euro have brought many advantages and have a great deal of support.   Even Mr. Tsipras is calling first for changes that will simply end the long period of austerity that has devastated his country.

 

INTERNATIONAL NEWS DESK

syriza

Syriza was described on the BBC World Service this morning as a “very left-wing party.”   It looks as if it will come to power in Greece this Sunday, January 25th.

The big issue, as is common in western democracies, is the economy.   In the case of Greece, this means austerity, which, in turn, means the euro.

In May, 2010, faced with imminent national bankruptcy, the European Central Bank, the European Union and the International Monetary Fund (the so called troika) bailed out the small Mediterranean country, while imposing strict austerity on the Greeks.   Austerity measures were increased in 2011 resulting in very high unemployment, especially amongst the young.   The measures were extremely unpopular.   Much of the blame was given to the euro, Germany and Angela Merkel.

Today, Syriza is threatening to unilaterally halve the debt, to end Greece’s national “humiliation” and if necessary, to leave the euro. Angela Merkel has indicated she is ok with a Grexit, the term being used for a Greek exit.

One concern is that, if one country withdraws, others will follow.   The eurozone could unravel.   Although not a member of the eurozone, Great Britain could pull out of the EU, which, again, might influence others.

______________________________________________________________________

King Abdullah of Saudi Arabia died yesterday, automatically succeeded by his half-brother King Salman.   Little change is likely in the kingdom in the immediate future.   The two kings come from a total of 45 brothers and half-brothers.   However, King Salman, aged 79, is likely the last of the present generation.

King Abdullah’s passing is ill-timed.   He has been king since 2005 and before that was de facto monarch for ten years as the previous king had suffered a serious stroke.   So, for twenty years, he has been the most powerful man in Saudi Arabia and a major figure in the Middle East.   His knowledge and experience will be sorely missed.

This is a challenging time for the Arabian peninsula, home of Al-Qaeda in the Arabian Peninsula (AQAP), perpetrators of the Paris terror attack.   Yemen’s pro-American government resigned this week as rebels seized the capital.   At the same time, another neighbor, Oman, will soon lose its leader, the pro-western Sultan Qaboos, who is now 74 and has been suffering from an undisclosed medical condition, which has resulted in him being rarely seen in public.

King Abdullah has been involved in bringing down the price of oil.   If the king had wanted to, he could have reversed the falling price simply by cutting Saudi production, but he didn’t.

He has also played a major role in supporting western efforts at fighting IS (Islamic State) and supporting Sunni rebels against Syria’s leader, who is allied to Saudi Arabia’s enemy, Shia Iran.   It should be noted here that Iran’s leader will attend a memorial for King Abdullah tomorrow.   Under Islamic custom, the king was buried today.

_______________________________________________________________

Tomorrow is the 50th anniversary of the death of Sir Winston Churchill. He died on 24th January 1965.

His official biographer is Sir Martin Gilbert.   Sir Martin spends two months every year at conservative Hillsdale College in Michigan, where he lectures on Churchill.   He has willed his extensive Churchill library to the college.

A few years ago, a student invited me to go with him to one of the lectures.

I asked Sir Martin to sign my copy of his one volume book on Churchill, which he gladly did.   I also took the opportunity to ask him a question:   “If Churchill had never lived, what would have happened in World War Two?”   His response was:   “We wouldn’t have gotten very far.”   His lecture that evening illustrated his point.

That evening’s talk was on the sinking of the French fleet after the fall of France.

Churchill ordered that the fleet should be sunk so that it would not fall into the hands of the Germans.   Hundreds of French naval personnel died in the British attack on the fleet.   The incident remains controversial to this day.   Not only did it deny the Germans the use of the fleet, it had the added side benefit of convincing US President Franklin Roosevelt to back Churchill.    He was now convinced that the British war-time leader would stop at nothing to win the war.

The western world desperately needs a Churchill now.

STATE OF THE UNION NOT SO GOOD

State of the Union

President Obama’s State of the Union speech, given before Congress late Tuesday, took me back fifty years.

In October 1964, the British people voted into power a Labour (socialist) government after thirteen years of Conservative rule.

Obama’s promises last night reminded me of the Labour government’s agenda.

The theme running through both was this:   government will take care of you, government will provide everything.

Except for a vague tax on the wealthy, nothing was really said about how all these programs will be paid for.

Most people are aware that the wealthy can afford expensive tax accountants who help them to reduce their tax obligations, sometimes down to zero.   Nothing is going to change that.   The president and members of Congress are not about to become paupers because of new taxes – they will find a way around them, just as other wealthy people will do.

Mr. Obama promised more help for the middle class.   The term “middle class” has a different meaning in the US to what it means elsewhere, as Sky News pointed out the following day.   The middle class in the US is mostly working class people who own their own homes and have been struggling to make ends meet for quite some time.   The biggest challenges they face are rising health care costs and falling wages and unemployment.   It’s difficult to see how taxing the rich will help them.

But the promises do provide for a massive expansion of government, which will only add to the burdens of the middle class.

A few days ago, I saw, also on Sky News, a massive fire burning in South Oxfordshire in the UK.   An extensive building was on fire, the result of arson.   The person covering the fire explained that 440 people worked in this building, which served the community in various ways, including housing.   That’s 440 jobs that did not exist seventy years ago – 440 jobs to serve a relatively small number of people in the southern part of one county!

This is what the US is headed for – bigger government programs mean bigger government buildings and bigger (higher) taxes.   If history is any guide, that tax burden will fall mainly on the middle class, the ordinary people who cannot afford expensive accountants to take advantage of the inevitable loopholes.

Government is always expanding.   Here in Michigan, there is a proposal before the electorate to increase the sales tax to pay for road repair.   But it doesn’t seem that long ago that the gas tax was increased to pay for roads.   Meanwhile, the state has had to give $191 million to Detroit to help bail the city out.   An additional high figure (close to $100 million) is being allocated to build a new “Welcome Center” at the Capitol.

It never ends.

That’s exactly what God said when He warned the Israelites what would happen when they asked for a king, for a human form of government like all the other nations, choosing to reject the theocratic government He had given them.

In I Samuel 8:5, the elders of Israel asked Samuel to “make us a king to judge us like all the other nations.”  God granted them their desire, but forewarned them (v. 9) of what to expect, to “show them the behavior of the king who will reign over them.”

In a long and very descriptive passage beginning in verse 11, God showed them how the king would take more and more of their wealth to pay for what he wanted, whether it be soldiers, servants (government employees) or just spending in general.

He concludes with these words:   “And you will cry out in that day because of your king whom you have chosen for yourselves, and the Lord will not hear you in that day” (v. 18).

Of note, here is the expression “your king whom you have chosen.” This passage includes democratically elected presidents, as well as kings.

What it’s saying is that governments inevitably expand.   The more government programs we have, the more money government needs. And, as government is inherently wasteful and generally inept, the burdens on the people grow and grow.   Dissatisfaction with the state of the economy has been evident in the polls for a few years – the people are already crying out!

However, in a democracy, the people only have themselves to blame.

Fortunately, Mr. Obama, a Democrat, is unlikely to find any support for his programs in the Republican controlled Congress.   However, programs already in place continue to grow.   It’s doubtful that even a Republican Congress will be able to reverse them.

The 1964 Labor government in England was a turning point.   Three years after taking office, thanks to their profligacy, the country had to devalue its currency against the dollar.   This led to the collapse of the sterling area, made up of mostly former British colonies that traded in the British currency, a system that meant they kept most of their financial assets in London.   Twelve years later, Britain had to turn to the International Monetary Fund for a bail-out.   It wasn’t until Margaret Thatcher became Prime Minister in 1979 that the country started to turn around.

Mrs. Thatcher believed in sound money, otherwise known as living within your means.   There was no evidence of that Tuesday night when the President addressed the nation in his annual State of the Union address.