Italy Pushes Back Balanced Budget by 2 Years

The amount of worry over something that needs to happen is staggering. I actually hope the fiscal cliff triggers. Better now than what is 100% certain to hit in a more severe way later. Ideally, I would prefer no tax hikes and massive budget cuts. Senator Rand Paul's plan to balance the budget would have me jumping for joy. The next best thing would be a small tax hikes in return for deep cuts in spending. However, Republicans foolishly killed that idea last summer, even rejecting plans that would cut spending over tax hikes in a ratio of 10-1.

The France-based ratings agency has just joined China's Dagong, and US Moody's by Fitch-slapping Italy with a BBB ratings handle. Citing four main reasons: election results which and 'non-conducive' for further structural reforms, deeper than expected recession, greater than expected budget deficits, and a weak government less able to respond to shocks. But apart from all that, as we noted earlier, Italian stocks and bonds are bid.   Via Fitch:

Just crossing the wires. Below is the full release. --------------------------------

Politicians in Greece and Italy failed to do the job. Prime Ministers in both countries went down in flames.However, it has been a struggle to find anyone to replace them with. Politicians have been bickering over replacements ever since the leaders agreed to resign.The latest proposal, and one we will likely see in Greece and Italy is "technocracy", rule by well-respected economic experts, who supposedly will know what to do.Rise of the Technocrats

House Speaker John Boehner's promise on Wednesday to balance the federal budget "over the next 10 years" was aimed at convincing Tea Party conservatives in Congress to hold their fire over a bill to temporarily raise the U.S. debt ceiling.

Ontario’s government said on Thursday it would run budget deficits most of this decade and plans to increase spending on infrastructure, healthcare and education to help offset the impact of the recession

Barack Obama did an interview with George Stephanopolous on the debt and and budget talks that are happening now.

It sounds like the GOP is going to bring back up the idea of attaching a Balanced Budget Amendment to the constitution.