Articles on the incompatibility of social justice and capitalism, reacting to the downgrade, David Rosenberg answers his critics, watch the President pivot to jobs, Kenneth Rogoff on the bullets yet to be fired like 6% inflation, and travel notes - sleepless in Seattle.

This is how conservatives look at the breakdown in the developed countries; it is well written and well argued, although for someone writing a book that stresses the importance of the ‘invisible hand of social justice’ to long-term economic viability it presents an importance challenge. Thanks to David of London.

Telegraph – If We Are To Survive the Looming Catastrophe, We Need to Face the Truth
The idea that a capitalist economy can support a socialist welfare state is collapsing before our eyes.

In case you haven’t heard.

Pdf below -- TD Economics -- Financial Reaction to US Credit Downgrade

David Rosenberg consistent in this warnings about the fragility of the economic recovery in the US comments on the market’s swift confirmation of his thesis. Thanks to David of Victoria.

Pdf below -- Breakfast with Dave 08 August 2011

We have long argued that the Obama Adminstration’s single biggest threat to a second chance is the structural weakness in the job market. Time to pivot.

New Yorker – How Bad Is It?
After the prime-time drama of showdowns on Capitol Hill, agita in the West Wing, and a doomsday deadline averted comes the local news, wherein bad things happen to real people.

Time to get serious: debt write-downs, 6% inflation, and structural reforms. (ed’s note: are bonds next?)

Financial Times – The Bullets Yet to Fired to Stop the Crisis
Four years into the financial crisis, it is becoming increasingly clear that the biggest deficit is not in credit, but credibility.

Travel notes: Sleepless in Seattle

Smooth and uneventful hop over to Seattle yesterday to get ready ready for our 32 hour airport to airport journey to Johannesburg.

We got the $99 Coast Gateway Hotel special on the recommendation of a friend because of the promixity to the airport.

Bad move.

We ended up walking four minutes further away to the Double Tree (a Hilton property) for dinner and would definitely stay there next time.

We found our room facing the highway -- noisy -- was filled with light all night because every neon sign in Seattle was beaming through the thin curtain that guarded our window.

Energy can't be possibly priced right in America.