France Banks and SNB in Trouble? U.S. Hits 98.9% Debt/GDP Ratio While Michelle Obama Charges Tax Payers $10 Million for Vacations

Big news today as rumors fly that France seems to be considering emergency measures to capitalize its banking system should the need arise (it will) via Zerohedge- Google Translate- Le Figaro:

Paris prepares a plan to help its banks

The Agency for State Holdings (EPA), meanwhile, has been working for several days in a scheme that would allow the French to enter the capital of financial institutions.

In the heart of summer, the little phrase from the Executive Director of the IMF, Christine Lagarde , the need for recapitalization of banks in Europe had created an uproar on this side of the Atlantic, both in government than among bankers. In France, especially, we stick tooth and nail for several weeks this summer's strategy, namely the implementation of the plan to rescue Greece from July 21 will address concerns and to redress market the situation.

Yes, yes, I am sure everything is fine and there is no significance here.  The truth is that France doesn't want to be caught empty handed like the U.S. was when TARP was needed.  They are preparing for the big one in advance, if not just for when Dexia goes under.  Nothing to see here, move along folks...

But tomorrow's release of the Swiss National Bank's balance sheet will sure be a sight to see, via Alexander Gloy of Lighthouse Investment Management:

We will know then how much Euros had to be gobbled up in order to defend the “peg”. Increasing tick volume in recent days looks suspicious – why would there be more volume than on days where the Swiss Franc reached parity? Or the day the SNB introduced the peg?

You can’t tell me that we recently had twice as much volume as on September 6, when this happened:

The SNB vowed to purchase “unlimited quantities” of Euros to defend the 1.20 barrier. How credible is that?

It will be very interesting to see how much the SNB destroyed another safe haven currency.  Those days are over now, Cloy predicts the SNB balance sheet will have expanded dramatically in order to maintain the euro peg.  Judging by the yield on U.S. Treasuries, it looks like the dollar is a safe haven in lieu of the franc and all the Euro zone trouble certainly isn't helping.  Whatever gets reported at 3am tonight (the SNB may not have had to purchase euros just yet), you can be sure the currency race to the bottom will continue even as Vice Prez of the Cleveland Fed Joseph Haubrich acknowledges the true effect:

Recently, inflation, as measured by the headline Consumer Price Index, has been running at a sustained clip—prices have risen over 4.5 percent in five of the past seven months, and in July they increased at an annualized rate of 6.2 percent.

The real big news today is this great headline:

Total US Debt Update: $14.86 Trillion; $162 Billion Increase In Three Days; 98.9% Debt/GDP

To add more salt in the wound, we have this via Telegraph:

Although ignored by most of America’s liberal-dominated media, several online US news sites are reporting that Michelle Obama’s grand tour of southern Africa earlier this year cost American taxpayers nearly half a million dollars – and that's just for the flights. This follows in the wake of claims this August from sources inside the White House itself that the First Lady may have spent “$10 million of taxpayers’ money on vacations alone in the past year.” Without all the figures available, it is impossible to establish the total cost to the public purse of Michelle Obama’s 42 days of holiday during that period, which included her trip to Spain last year (though not the Obamas' recent sojourn in Martha’s Vineyard).

Of course none of this will be acknowledged.  Michelle needs her vacations while other nations with such alarming debt/gdp ratios usually start doing something about it like reform entitlements are slash their defense budgets.  Unfortunately, there aren't any votes to buy by doing that.  And of course the one man running for president who actually gives a crap about his supporters continues to be undermined by the establishment.  Take a look at this kid's first hand experience with Ron Paul:

Ron Paul finished his speech, interrupted several times by the enthusiastic crowd, and hurried out the door to catch his plane. Spiker looked at me and gestured toward him. "You're on, get going" was the unspoken message. Rushing to catch up, I followed the congressman to his waiting car. "Here," Paul said, "you hop in this side. I'll go around." Say what? A congressman deferring his seat to a regular guy like me? Someone get me the weather report in Hell, quick.
We got in the SUV and took off. "So," Ron says to me, "what did you think of the speech? Was it OK?" Yes, I told him. I enjoyed it very much. "I hope so. You know," he said with the wave of his hand, settling himself into the backseat, "I feel like I repeat myself a lot. I feel bad that I have to say a lot of the same things all the time, but the message of freedom is important." Clearly this was a humble man I was dealing with here, with a refreshingly human touch of insecurity.
Congressman Paul and I talked casually, like old friends. We chatted about what I was doing in school, what I wanted to do in the future, some of his past trips to Iowa State, and the fast pace of the campaign. We pulled into the Nevada McDonald's. "I'm so hungry" Ron said. "We haven't had time to eat today." Paul had stopped in Dubuque, Clinton and Muscatine before arriving in Nevada.
As we sat in the parking lot waiting for the congressman's value meal, a couple walked by. Illuminated by the dome light overhead, they could see Paul sitting there. The man peered in at us and did a double take, quickly tapping the woman's arm and pointing. The two grinned and waved excitedly, and Paul leaned forward between the front seats and waved back, no doubt making their night. Like I said, Paul's people love him, and it just goes to show that his people are everywhere.

Would Romney, Perry, Cain, Bachmann or any other candidate polling fairly high actually do this for a student reporter? I certainly don't think so, Paul continues to impress.  I will end with another character that continues to impress, WilliamBanzai's Visual Combat Daily is always a bright spot in my day and today's is no different:

Banzai keeps getting better and better, keep up the great work!

Update- RIP Steve Jobs, a fantastic but ironic speech given at Stanford's commencement: