US default a threat to all businesses

SEVEN months into 2011 and the UK stock market has failed to hold ground above its January 4 intraday high of 6043 on the FTSE100.

The index has since traded in a relatively narrow range of around 300 points, supported at 5700 on several occasions.

Some observers may be surprised that investor confidence has remained intact when faced with unspectacular economic data, the Japanese quake and tsunami, the Greek/ Portuguese debt bail-out and of most immediate concern, the prospect of a default by the US in the absence of an agreement on a higher debt “ceiling”, currently set at $14.3 trillions.

In layman’s speak, to lift that ceiling would equate to an increase in the country’s overdraft limit.

Without it, the US government would no longer be able to pay the monthly Social Security cheques, as well as financial assistance to the elderly, the unemployed, Medicare and Medicaid or to honour the thousands of contracts with multinational companies.

While it is likely that political brinkmanship will yield to expedience and commonsense, the US will be in no better position to repay its debts if this hurdle is crossed unless it takes a knife to its budgets and spending plans and initiates the austerity programmes reluctantly embraced by other developed economies in the west.

This is the message that Republicans and The Tea Party are hammering home by their dogged refusal to accede. But if they don't reach a compromise, expect global markets to force their hand.

The dire consequences of a default and lowering of the credit rating of the world’s largest economy and reserve currency aren’t hard to fathom. One major fund manager deemed the prospect “absolute madness”.

Expect China, which holds three trillions of dollar foreign reserves, to be somewhat under-whelmed!

And with so many loans collateralised against US Treasury paper, a global systemic financial shock would seem unavoidable.

Yet in spite of this possibility, investors are still chasing good quality company shares, particularly those with generous and growing dividends and those exposed to the burgeoning growth of China, India, Brazil and the emerging economies whose consumers account for well over half the world’s population.

As domestic growth falters, so the likelihood of further stimulus will increase and any rise in interest rates will move even further down the road.

Buy an Irish Theme Bar And 2 Bed Apartment Fuengirola business ...

Business description

This outstanding Irish theme bar is absolute quality. A no expense spared refurbishment has recently been carried out resulting in a high class finish.

Located in what is locally acknowledged as the very best trading street in this area of the Costa del Sol, at night times throughout the year the street comes alive with a mixture of locals and visiting tourists of many nationalities especially British and Scandinavians. A more mature clientele frequents the bar which at the moment is being operated by the freeholder who now wants to lease the bar, any new owner will acquire a fantastic bar in a great location. Also, and rarely available, is a spacious 2 bedroom apartment situated above the bar with its own separate entrance, this apartment is available from 01st September at the low monthly rent of 550 euros should the bar tenant want close accommodation. The apartment has sea views from the pleasant balcony.

The beautifully presented and air-conditioned interior of the bar has quality furniture providing seating for approximately 40 customers. The serving bar has plenty of bottle shelving and low level glass fronted display chillers are fitted together with sink units, a further bottle fridge and several beer coolers and fonts. Cable TV is connected with two wall mounted televisions in place. At the far end of the bar is a small raised stage platform. There are double doors at the entrance and a covered area set aside for smoking. At the front of the bars entrance is a pavement terrace with seating for 16 at 4 tables.

Leasehold bars of this calibre with low monthly rent and low leasehold price are never available in this popular sought after pretty semi pedestrian street close to the beach, hotels and rubbing shoulders with other successful long established restaurants, shops, bars and cafes. A bar that must be viewed.

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