Overnight France committed to a massive austerity plan aimed at reducing its outsized budget deficit to a mere 3% of GDP by 2012, downfrom its current 8%.  Half of the reduction is to come from spending cuts, so the other half follows automatically from the tried-and-true economic concept of cutting to prosperity.  When asked if he thought the Euro would reach parity with the U.S. Dollar and spur export demand, Prime Minister Fillon commented, “as a policy we do not like to benchmark ourselves against any currency featuring George Washington, France always preferred men like Thoman Jefferson.”  He went on to cite several signs of economic activity, including strong 2012 hotel bookings in Brittany as France tries to woo Olympics fans to their side of the channel as well as a large pending Airbus order from Mattel.

Just as texbook authors are hurrily trying to update Introduction to Economics texts to replace the discussion of ’supply side stimulous ‘and ‘demand side stimulous’ with coverage of the ‘other side of the rainbow stimulous’, they’ve decided to remove the long standing example of guns vs. butter.  The new gold vs. opium discussion was prompted by an overnight announcement that nearly $1 Trillion in mineral deposits have been identified in Afghanistan.  Also overnight, a Bureau of Printing and Engraveing spokesman announced that once again, U.S. nickels will be produced primarily from nickel. They expect to maintain the current design featuring Thomas Jefferson. 

And one last thing…

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