Word Economy and SMEs in 2012

THe problem around the world is Big GOvernment and big government debt. Countries like Greece, the USA, Ireland, Spain and Italy are in a mess because of socialist spending over many years, with politicians and bureaucrats who are too cowardly to make tough decisions to cut the waste and cut the debt. There's no other way out other than to have big cuts in government spending. It won't be popular with the snouts in the trough but it's the right thing to do.

The big risk is that these countries will not make the tough decisions, default and take out the EU and the world economy with them, leading to another round of big bank bailouts around the world. The problem is, when Governments default, who is left to bailout the banks?!

Too big to fail is too big to exist. Let them fail. It will be painful, but it's high time for a cleanout.

If the tough decisions aren't made, of course it will affect Australia.

The problem here is that we have a Federal Labor Government addicted to the same big spending big government big debt policies. We better hope China keeps buying our natural resources, or we'll be in a world of mess. That will hurt small business in Australia.

Steve, you seem to have left out the part where the "big governments" accumulated that debt by bailing out the big banks, or funding the wars in Iraq or Afghanistan.

Any time is a good time to start a small business.