Starting Right

The United Kingdom's fiscal problem bears a strong resemblance to America's: too much debt and too large a budget deficit.

The only redeeming factor is that the bond market vigilantes, who have hammered Greek government bonds and are now eyeing those of Spain and Portugal, have not yet turned on either the USA or the UK. As a result, interest payments on our monstrous debts are, at least for the moment, relatively modest.

At its first meeting, the new British Cabinet decided that the Prime Minister, and all members of the Cabinet, would take an immediate five per cent pay cut. Not a pay freeze but a real cut. While this is a largely symbolic act, it is also a distinct sign that there are politicians who do understand some of the basic concepts of leadership. The message is clear:

Times are going to be hard, and there will be savage spending cuts, but we are all in this together.

It would be wonderful if President Obama and his Cabinet would make the same sacrifice. Even better would be to see some of the multi-millionaire political appointees and members of the Congress - specially those serving [themselves] in the Senate - decide that it would be appropriate for them to work for their country as 'dollar a year men'.

Don't hold your breath waiting, you will only turn blue.