Mar 032017
 
 March 3, 2017  Posted by at 8:48 am Finance Tagged with: , , , , , , , , , ,
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DPC North approach, Pedro Miguel Lock, Panama Canal 1915

 

EU Votes To Suspend Visa-Free Travel To Europe For Americans (Tel.)
Snap IPO “The Ultimate Example Of Bubble Trouble” (CNBC)
Snap IPO: A Shareholding Monarchy (G.)
What If The 1980-Secular Bull Is Still Running? (Roberts)
Global Banks Have Paid $321 Billion In Fines Since Financial Crisis (BBG)
Home Ownership In England At A 30-Year Low (G.)
More Than Half Of New-Build Homes In England ‘Have Major Faults’ (G.)
China’s Parliament Is Chock Full Of Billionaires (CNBC)
The Tyranny Of A Cashless Society (Simpson)
A Goat Would Beat Le Pen In France’s Presidential Election (CNBC)
Elephants Are The Shortest Sleeping Mammal (BBC)
Dishwasher Becomes Co-Owner Of World-Famous Restaurant (G.)
Lake Once Worshipped As Birthplace Of The Sun Now A Deadly Garbage Dump (AP)
Greece Requests Loan From World Bank (K.)
Greece’s ‘Desperate Households’ (K.)
EU Threatens Members With Legal Action Over Refugees (K.)
Calais Mayor Bans Distribution Of Food To Refugees (G.)

 

 

Sure, make life harder for your own citizens.

EU Votes To Suspend Visa-Free Travel To Europe For Americans (Tel.)

Americans should be forced to apply for visas to travel to Europe, the European Parliament has said, in response to Washington refusing to allow all Europeans to travel to the States visa-free. The vote by show of hands is the latest in the ongoing “visa war” between Brussels and the US capital, which now looks set to come to a head after MEPs today agreed that US nationals crossing the Atlantic should require additional travel documents as long as citizens from five EU countries (Bulgaria, Croatia, Cyprus, Poland and Romania) are kept from entering America without a visa. A European Parliament source told Telegraph Travel this was a “serious negative step in the EU-USA visa war”.

The EU Commission now has two months to reintroduce visas for Americans wishing to travel to Europe, after MEPs agreed the EU is now “legally obliged” to suspend the Visa Waiver Programme (VWP) with the US for a year after the US administration failed to meet a deadline to respond something called visa reciprocity. Parliament and the European Council will have the chance to object to anything put forward by the Commission. The need to apply for a visa to travel to a country is widely seen as a turn-off to potential visitors, given the extra cost and time an application requires. A country looking to boost its tourism industry will often look at loosening any existing visa requirements. The resolution was passed despite warnings from the European Travel Commission (ETC) of the damage a visa war with the US might have on the continent’s tourism industry.

“We fully understand and respect the visa waiver reciprocity mechanism embedded in European legislation to ensure that all nationals of Member States part of Schengen can benefit on equal terms from exemption of visa requirement,” said Eduardo Santander, executive director of the ETC, in a joint letter with Michael de Blust, secretariat of the Network for the European Private Sector in Tourism, to MEPs. “However, we are very concerned about the economic and political impact of a suspension of visa waiver for US nationals. “Making it more difficult for US citizens to travel to Europe would certainly deprive the European travel and tourism sector of essential revenue, and put thousands of European jobs at stake in one of the few sectors which experiences a strong growth in employment.”

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“Morgan Stanley and Goldman should hang their heads in shame here.”

Snap IPO “The Ultimate Example Of Bubble Trouble” (CNBC)

Top investment banks behind the Snap Inc public listing are being slammed for the lack of voting rights that investors in the stock will receive. Snap Inc priced its initial public offering above its target range at $17 per share on Wednesday, valuing the company at $24 billion when staff stock and deal bonuses are included. The holding company, which owns social media phenomenon Snapchat, will debut on the New York Stock Exchange Thursday but investors have bought shares with no voting power. Stephen Isaacs, chairman of the investment committee at Alvine Capital, says the major investment banks behind Snap’s public debut are pushing through an unusual move that takes liberties with investors’ rights. “Morgan Stanley and Goldman should hang their heads in shame here. I mean not about the valuation but non-voting shares?

“Isn’t that the ultimate example of bubble trouble? So I say we are in a bubble, there is no value and investors should take a lot of risk off the table,” he said Thursday.Isaacs says the Snap Inc IPO could come to symbolize something bigger than just the deal itself as markets continue to bloat ever higher. “There are two views; the Warren Buffett view is that he market isn’t that expensive, the American economy is doing well and the long-term investor should always be engaged. And in the end he’s done a pretty good job of managing other people’s money. “The other view which I’m afraid I agree with is that we are in a cycle, we are at the top of the cycle, valuations show absolutely no value and then Snap comes along,” Isaacs said. “Sometimes a deal at the top of the market can be something that crystallizes the insanity”, he added.

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“They could retire to an ashram in India or spend the rest of their lives writing haikus. No matter, they will still make every major decision for Snap..”

Snap IPO: A Shareholding Monarchy (G.)

It is a paradox that a country that sought freedom from a king, the United States, is today happy to crown monarchs in commerce. Snap, which calls itself a camera company but is in fact a Silicon Valley firm behind a mobile messaging app, floated on the US stock exchange making billionaires of its two under-30 founders. True, 158 million people open the Snapchat app an average 18 times a day. But money and influence are not the only issues here. It’s also about unaccountable power. Snap’s initial public offering marks a turning point in US capitalism: it is the first time that the only shares on offer are those with no voting rights.

This form of techno-aristocratic capitalism means that the founders, 26-year-old Evan Spiegel and 28-year-old Bobby Murphy, will alone make the big decisions about Snap and maintain control over the social media phenomenon even if their employment is terminated. They could retire to an ashram in India or spend the rest of their lives writing haikus. No matter, they will still make every major decision for Snap, from appointing board members to a possible future sale. Only death will release the company from their control. Or if both sell more than 70% of their stock. It’s bizarre that in a country founded on a repudiation of old-world aristocracy, investors are pouring money into creating a nouveau US version of an ancien regime European aristocracy in business, replicating its extravagant and unaccountable wealth.

Snap is the worst example of this trend. Silicon Valley is now dominated by companies with weak or passive public shareholders. Many investors have been silly enough to hand over cash for little say in the running of tech titans such as Google, Facebook and Alibaba. Given how quickly today’s heroes are tomorrow’s zeros in technology, it seems foolhardy to cede control to listed companies that sometimes never make a profit or where incumbent managers cannot be fired to make way for new blood. Are investors so gullible that they believe the guff about new gods who see further than anyone else from Olympian-high pedestals – and are happy to get no dividends from their stock?

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Multiple trends coverging.

What If The 1980-Secular Bull Is Still Running? (Roberts)

[..] I have created the following thought experiment of examining the psychological cycle overlaid on each of the three full-cycle periods in the market.

The first full-market cycle lasted 63-years from 1871 through 1934. This period ended with the crash of 1929 and the beginning of the “Great Depression.” 

The second full-market cycle lasted 45-years from 1935-1980. This cycle ended with the demise of the “Nifty-Fifty” stocks and the “Black Bear Market” of 1974. While not as economically devastating to the overall economy as the 1929-crash, it did greatly impair the investment psychology of those in the market.

The current full-market cycle is only 37-years in the making. Given the 2nd highest valuation levels in history, corporate, consumer and margin debt near historical highs, and average economic growth rates running at historical lows, it is worth questioning whether the current full-market cycle has been completed or not.

The idea the “bull market” which begin in 1980 is still intact is not a new one. As shown below a chart of the market from 1980 to present, suggests the same.

The long-term bullish trend line remains and the cycle-oscillator is only half-way through a long-term cycle. Furthermore, on a Fibonacci-retracement basis, a 61.8% retracement would current intersect with the long-term bullish trend-line around 1000 suggesting the next downturn could indeed be a nasty one. But again, this is only based on the assumption the long-term full market cycle has not been completed as of yet.I am NOT suggesting this is the case. This is just a thought-experiment about the potential outcome from the collision of weak economics, high levels of debt, and valuations and “irrational exuberance.”

Yes, this time could entirely be different.

It just never has been before.

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The amount of fraud some people can engage in without doing time or losing a dime is stunning.

Global Banks Have Paid $321 Billion In Fines Since Financial Crisis (BBG)

Banks globally have paid $321bn in fines since 2008 for an abundance of regulatory failings from money laundering to market manipulation and terrorist financing, according to data from Boston Consulting Group. That tally is set to increase in the coming years as European and Asian regulators catch up with their more aggressive US peers, who have levied the majority of charges to date, BCG said in its seventh annual study of the industry published on Thursday. Banks paid $42bn in fines in 2016 alone, a 68 per cent rise on the previous year, the data showed. “As conduct-based regulations evolve, fines and penalties, along with related legal and litigation expenses, will remain a cost of doing business,” analysts led by Gerold Grasshoff wrote. “Managing those costs will continue to be a major task for banks.”

The era of ever-increasing regulatory requirements is here to stay, BCG said, despite President Donald Trump’s pledge to roll back the 2010 Dodd-Frank Act that reshaped US banking in the aftermath of the collapse of Lehman Brothers. The number of rule changes that banks must track on a daily basis has tripled since 2011, to an average of 200 revisions a day, according to the report. “Regulation must be considered a permanent rise in sea level – not just a flowing tide that will ebb or even a cresting tsunami that will recede,” the authors wrote. “We expect this theme to hold despite recent political developments in the US.” Almost 10 years after the onset of the financial crisis, the banking industry still hasn’t completely recovered from the losses it suffered by one measure, BCG said.

While finance firms created so-called economic profit of €159bn in 2015, a fifth annual increase, the industry remains €9bn in the red on a cumulative basis for the years 2009 to 2015, the data show. BCG calculated economic profit by taking a bank’s operating results and incorporating its cost of capital.

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Boy, what a mess. They’re going to have to reboot the entire country. Seriously.

Home Ownership In England At A 30-Year Low (G.)

Home ownership in England has fallen to its lowest level for 30 years, while the number of people privately renting is now higher than in the early 1960s, according to official figures. Government data reveals that the private rented sector has doubled in size since 2004, with almost half of all people in England aged 25 to 34 paying a private landlord for their accommodation. Ministers recently admitted England’s housing market was “broken”, with home ownership a distant dream for millions. Labour claimed the figures showed that the government was “out of ideas” and had no long-term plan to fix the housing crisis. The Generation Rent campaign group said runaway house price inflation and the difficulty of saving a deposit had trapped millions in private rented housing, “even more [people] than in the days of slum landlords like Rachman”.

The latest English Housing Survey, produced by the Department for Communities and Local Government (DCLG), found that of the estimated 22.8m households in England, 14.3m – or 62.9% – were owner-occupiers in 2015-16. It stated that owner-occupation rates “remain unchanged for the third year in a row” – but Labour and others were quick to seize on an accompanying table, which showed that the rate had slipped from 63.6% the previous year. This is down from a peak of 70.9% in 2003 and is the lowest figure since 1985, when it was 62.4%. By contrast, the private rented sector has ballooned in size and now accounted for just over 4.5m households – double the 2.3m in 2004. The new figure represents 20% of the total, whereas in 2002 it was 10%.

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No surprise whatsoever.

More Than Half Of New-Build Homes In England ‘Have Major Faults’ (G.)

More than half of the buyers of new homes have experienced major problems with their properties, according to research, which comes after Bovis Homes agreed to pay £7m compensation to customers for poorly built houses. A YouGov survey for the housing charity Shelter found that 51% of homeowners of recent new builds in England said they had experienced major problems including issues with construction, unfinished fittings and faults with utilities. The survey, which polled 4,341 UK adults online, was published alongside a Shelter report that concluded that the housebuilding sector is rigged in favour of big developers and land traders rather than families looking for homes.

The current speculative system of housebuilding is failing families by producing expensive, yet poor-quality homes, according to the report, published after the government branded the housing market “broken” in its recent housing white paper. Eight in 10 working families who are renting privately cannot afford to buy a newly built home – even if they use the government’s Help to Buy scheme, Shelter said. The West Midlands ranked as the worst region, with 93% of families unable to purchase an average-priced new home. In the report, titled New Civic Housebuilding, the charity calls for a return to building good-quality, affordable homes like the model villages for Cadbury workers at Bournville, the red brick developments of the Peabody and Guinness estates, the Victorian and Georgian terraces in Edinburgh and Bath, and the garden cities of Letchworth and Welwyn.

The YouGov poll showed 41% of homeowners disagreed with the statement “I would prefer to live in a new home rather than an older one”; 29% agreed, and 26% neither agreed nor disagreed. And 45% disagreed with the statement “New homes are built to a higher standard than older homes”; 22% agreed and 23% were neutral.

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Communist Party.

China’s Parliament Is Chock Full Of Billionaires (CNBC)

Want to rub elbows with the rich? Go to China, where the country’s parliament could pass for an elite club of the world’s richest, where about 100 delegates are U.S. dollar billionaires. They made their fortune in everything from property to energy, according to data from the Hurun Report, which publishes the China Rich List. A bunch of tech entrepreneurs sit at the top of the list, including Pony Ma of Tencent, Robin Li of Baidu and Lei Jun of Xiaomi. The names are among delegates gathering for their annual meeting in Beijing starting on Friday, a roughly weeklong affair that’s big on posturing, but small on legislating. Delegates always vote to approve proposals from the ruling Communist Party. Here’s another fun fact: The richest 209 parliament delegates are each worth more than 2 billion yuan ($300 million) – their combined wealth is equivalent to the annual GDPs of Belgium and Sweden, using World Bank figures on GDP for those countries.

By comparison, the U.S. doesn’t have a single billionaire in Congress. The wealthiest member, California Republican Darrell Issa, is worth around $440 million, according to the Center for Responsive Politics. President Donald Trump claims he is a billionaire, though he has refused to release his income taxes to prove it – breaking with a practice followed by U.S. leaders since Richard Nixon. Still, China’s parliament – made up of the National People’s Congress and the Chinese People’s Political Consultative Conference – includes delegates from a wide variety of backgrounds, including those who benefited handsomely as China’s economy has grown into the world’s second largest. But there’s another reason to show up – these sessions of China’s “rubber stamp” parliament are a chance to see and be seen. In a country where business and commerce are tightly restricted, a chance to rub elbows with top Communist Party brass could mean the difference between boom and bust.

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“If the minds behind a cashless society are allowed to have their way, America would become little more than a monumental ant farm..”

The Tyranny Of A Cashless Society (Simpson)

Like many people, I am a careful person when it comes to digital commerce, yet nonetheless I had two of my credit cards hacked (twice in the last four years) — one time by a supposedly reliable online retail company, another time when I rented a trailer. And both times, it required an incredible amount of time, police reports, phone calls, etc., just to get back to square one and get my money back. But my experience was not unusual. Nearly 18 million Americans suffered from some form of identity theft in 2014 alone. Digital commerce and credit cards are very problematic and are not the panacea that companies and the government want the public to believe.

Looking to a future in which governments abolish cash in useful denominations, it follows that they will then focus on eliminating personal and commercial commerce through the use of compact high-value commodities such as gold and silver, a natural progression if $100 bills are taken out of circulation in the United States. People today who are living in the legacy of the Barack Obama economy already need a fistful of $20 bills just to buy a week’s supply of groceries. And it’s easy to spend $400 a week on fresh groceries for two people, especially if you buy premium products and organic. If we consider the increasing trend where banks, institutions and big retailers are regularly hacked, combined with identity theft, digital commerce and credit cards aren’t all they’re cracked up to be, and in reality are posing an ever-increasing level of liability on all levels through their use.

The relatively few people who may ultimately control all of the digital wealth of Americans will virtually have control of all the people in a cashless society. This results in a definite loss of freedom and liberty. There are many, many other ways for law enforcement to hammer criminals and curtail their enterprises, if that is truly the goal. But any method that inhibits or erodes the freedoms of Americans in any way, including limiting or infringing upon person-to-person commerce and personal privacy in any manner, is to be shunned and runs counter to the intents and spirit of our beloved U.S. Constitution. Digital currency transactions in lieu of cash would allow virtually 100% tracking of all Americans, including law-abiding citizens and all that we do.

We have already learned over the past eight years of the Obama-led government that governments don’t necessarily work for or even represent the will of the people. So how can anyone justify giving the government this much power over Americans? There is no such justification. The vast majority of Americans are not criminals, and therefore any action by government that affects or targets the vast majority of people in order to deal with a small factional percentage of criminals in the population is manifestly unfair. Politicians simply need to do the jobs they are being paid to do, and come up with anti-criminal tactics that strictly focus upon the bad actors, not the majority of law-abiding Americans.

If the minds behind a cashless society are allowed to have their way, America would become little more than a monumental ant farm, where the elitist class studies Americans to a much greater extent than ever before — how we move around and what we do, use, eat, watch and listen to — and then uses this deeply insightful personal information, potentially to plot how to control everyone. Things like if we’re allowed to be born (abortions already control this to some extent), how long we get to live, and what we are allowed to do in between. Orwellian, yes, but possible nonetheless.

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“I want to be perfectly clear for foreigners and for investors in particular, a goat, literally a goat, at the second round against Marine Le Pen, the goat is elected.”

A Goat Would Beat Le Pen In France’s Presidential Election (CNBC)

Those concerned that far-right leader Marine Le Pen will become France’s next president might be worrying too much, according to one political analyst. Thomas Guénolé from the Paris-based institute Sciences Po told CNBC Thursday: “I want to be perfectly clear for foreigners and for investors in particular, a goat, literally a goat, at the second round against Marine Le Pen, the goat is elected.” Guénolé added that there are many French voters who are “allergic” to the far right and would unite in the second round of the election to prevent Le Pen from winning. Le Pen is currently ahead in projections for the first round scheduled for April 23. But she is seen losing the second round to the centrist candidate Emmanuel Macron. “Basically the ideology of Mr Macron is opportunism,” Guénolé said. “He waited as long as possible before telling us what his platform is.”

Macron is due to outline his manifesto Thursday morning. This comes after French authorities decided to formally investigate the conservative candidate Francois Fillon for misusing public funds. Fillon who, until the scandal emerged, was well-placed to become the next president, announced Wednesday he is not stepping out of the race, despite previously saying he would if formal investigations were pursued. According to Guénolé, Macron has more to win from Fillon’s downfall than Le Pen. “I don’t think Marine Le Pen will benefit from this because in fact those who are right-wing voters and think Marine Le Pen is better already want to vote for Marine Le Pen. So I don’t think she’s going to win extra voters, but Emmanuel Macron can be an alternative for those who are right-wing voters and do not want to become far-right voters,” he said.

[..] Laura Slimani, spokesperson for the socialist candidate Benoit Hamon, told CNBC on Thursday that Fillon’s scandal “puts a lot of discredit on politics.” The socialist spokesperson said that all candidates to the presidential seat should disclose who’s funding their campaigns, as sentiment surrounding corruption seems to grow. “Who is today financing the campaign of Emmanuel Macron?,” Slimani said. “We know he is supported by big names in finance, in the business industry, so we want to know who is financing his campaign because this will have an impact on what kind of policies he will lead afterwards, at least it will have an impact on whether he will be a free president, if elected,” she added.

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Elephants have strong memories. But they sleep just two hours a night. Given how important we think (REM) sleep is for memory, that poses some major questions.

Elephants Are The Shortest Sleeping Mammal (BBC)

Wild African elephants sleep for the shortest time of any mammal, according to a study. Scientists tracked two elephants in Botswana to find out more about the animals’ natural sleep patterns. Elephants in zoos sleep for four to six hours a day, but in their natural surroundings the elephants rested for only two hours, mainly at night. The elephants, both matriarchs of the herd, sometimes stayed awake for several days. During this time, they travelled long distances, perhaps to escape lions or poachers. They only went into rapid eye movement (REM, or dreaming sleep, at least in humans) every three or four days, when they slept lying down rather than on their feet. Prof Paul Manger of the University of the Witwatersrand, South Africa, said this makes elephant sleep unique. “Elephants are the shortest sleeping mammal – that seems to be related to their large body size,” he told BBC News.

“It seems like elephants only dream every three to four days. Given the well-known memory of the elephant this calls into question theories associating REM sleep with memory consolidation.” Elephants living in captivity have been widely studied. To find out more about their sleeping habits in the wild, Prof Manger and his research team fitted the scientific equivalent of a fitness tracker under the skin of the animals’ trunks. The device was used to record when the elephants were sleeping, based on their trunk staying still for five minutes or more. The two elephants were also fitted with a gyroscope to assess their sleeping position. Both elephants were followed for five weeks, giving new insights into their natural sleep patterns. “We had the idea that elephants should be the shortest sleeping mammal because they’re the largest,” said Prof Manger. “Why this occurs, we’re not really sure. Sleep is one of those really unusual mysteries of biology, that along with eating and reproduction, it’s one of the biological imperatives. We must sleep to survive.”

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Forgot this yesterday. Feel good news for today then.

Dishwasher Becomes Co-Owner Of World-Famous Restaurant (G.)

A dishwasher described as the “heart and soul” of the world-class Danish restaurant Noma has been made a co-owner of the establishment he has worked in for 14 years. The decision to promote Ali Sonko, who has toiled in the Noma kitchen since it first opened in 2003, was announced at a party in Copenhagen to mark the restaurant’s last day at its waterfront location in Christianshavn. The restaurant, named the world’s best four times by Restaurant magazine and three times in the San Pellegrino World’s 50 Best, is due to move to a new location and reopen as an urban farm in December. In a Facebook post, René Redzepi, the chef who runs Noma, said it was “one of the happiest moments of my time at Noma” to announce that Ali was to become one of his new business partners, saying it was in recognition of his hard work and enduring smile.

“I don’t think people appreciate what it means to have someone like Ali in the house,” Redzepi told friends gathered for a party to mark Noma’s move. “He is all smiles, no matter how his 12 children are faring.” Sonko, 62, who moved to Denmark 34 years ago after emigrating from his native Gambia, where he worked as a farmer, described his job as “the best ever”. “I cannot describe how happy I am to work here,” he told the Danish website BT. “There are the best people to work with and I am good friends with everyone. They show enormous respect towards me and no matter what I say or ask them, they are there for me.” Redzepi, whose restaurant also has two Michelin stars, said he planned to surprise other staff “with a piece of the walls they have chosen to work so hard within”.

Alongside Sonko, Lau Richter, Noma’s service director, and James Spreadbury, an Australian who has managed the restaurant since 2009, are also to be made partners in the business. Redzepi said his father, also called Ali, had worked as a dishwasher when he arrived in Denmark as an immigrant from Macedonia.

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The Automatic Earth banner shows Lake Titicaca.

Lake Once Worshipped As Birthplace Of The Sun Now A Deadly Garbage Dump (AP)

Tucked between snow-capped mountains, Lake Titicaca was once worshipped by the Incas, who proclaimed its deep blue waters the birthplace of the sun. These days the shores of South America’s largest lake are littered with dead frogs, discarded paint buckets and bags of soggy trash. Less visible threats lurk in the water itself: toxic levels of lead and mercury. The steady deterioration of the prized tourist destination has caused a rash of health problems among the 1.3 million people in Peru and Bolivia living near Lake Titicaca’s polluted banks. Untreated sewage water drains from two dozen nearby cities and illegal gold mines high in the Andes dump up to 15 tons of mercury a year into a river leading to the lake. “If the frogs could talk they would say, ‘This is killing me,'” said Maruja Inquilla, a local environmental activist who recently showed up at the Puno governor’s house carrying plastic bags filled with hundreds of dead frogs in protest.

Increasing concern about pollution has prompted a series of scientific studies and promises of official action. The governments of Peru and Bolivia signed a pact in January 2016 to spend more than $500 million to attack the problem, though the details were vague. A year later, Peru’s new president, Pedro Pablo Kuczynski, pledged to construct 10 treatment plants around the lake, putting the cost at $437 million, “so that the most beautiful lake in the world is the cleanest lake in the world.” But details of how the plants would be funded remain unclear and promises by politicians dating back two decades have so far gone unfulfilled. Many of the more than 400,000 tourists who visit Lake Titicaca from Peru each year stop first in Juliaca, a town that produces 200 tons of trash daily, much of it winding up in a river that has turned into a conveyor belt of waste heading into the lake. Hypodermic needles, tires, old shoes and used diapers are scattered among the potato fields that line the giant lake’s shores.

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“Greece’s current creditors “are not too happy about” the fresh request for funds..”

Greece Requests Loan From World Bank (K.)

Greece has requested an unknown amount of “financial assistance” from the World Bank even as bailout talks continue amid government officials and representatives of the country’s international creditors, according to a report in Politico. “The government of Greece has asked the World Bank to provide technical and financial assistance to address pressing challenges including: long-term unemployment, economic competitiveness and growth and social protection,” Politico cited a spokesperson from the World Bank as saying in a statement. “In accordance with World Bank procedures, any final decision on providing loans would be subject to approval by the bank’s board of executive directors,” it said.

The World Bank declined to specify how much money Greece is purported to have requested, Politico reported. Greece’s current creditors “are not too happy about” the fresh request for funds, an EU official was quoted as saying. The report also cited an unnamed government source as saying that negotiations were under way but not confirming the alleged request for a loan. “Preliminary talks have taken place indeed with [the World Bank] but we cannot confirm official application,” the source was quoted as saying.

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The endless litany of bad numbers continues unabated. This is from the ECB itself.

Greece’s ‘Desperate Households’ (K.)

Greek households generally own their home and have a car; they often have a house in the village their family hails from too. However, their bank accounts are shrinking, their loans are not being serviced as promptly as they used to be and their liquidity is close to zero. Unemployment is now changing the structure of households, resulting in young and old being forced to stay under the same roof. These are the main features of Greek households during the economic crisis as recorded by the European Central Bank’s Household Finance and Consumption Survey, which covers the 2010-14 period and was presented in Greece on Thursday in the weekly bulletin of the Hellenic Federation of Enterprises (SEV).

Under the title “Desperate Households,” the bulletin highlighted that families continue to provide a safety net; however, it showed that their stamina is also running low, as is that of the friend network. The rate of Greek households that said they could seek financial support from relatives and friends dropped to 36.5% in 2014 from 59.4% in 2009. The situation is certain to have deteriorated further in the last couple of years. Few Greeks have the luxury of being able to save money: Just 13.5% of households said they added to savings on a regular basis, down from 21.9% five years earlier. This is by far the lowest rate in the European Union.

The index of liquidity as a ratio of disposable income was at just 2.8% in Greece, down from 4.9% five years earlier, and against a eurozone average of 16.7%. There was a notable decline in the rate of heads of households who are self-employed (from 18.9% to 14.4% within five years) and those who are salary workers (from 39.7% to 36.5%). In contrast, the rate of heads of households who were retired increased from 34.7% to 39.3%, and those who were out of work from 6.6 to 9.8%. Another study by the Cologne Institute for Economic Research showed on Thursday that Greece is top among European countries in terms of poverty growth, as the number of Greeks below the poverty line grew 40% from 2008 to 2015.

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Worked great so far….

EU Threatens Members With Legal Action Over Refugees (K.)

The European Commission is piling the pressure on European Union member-states that are refusing to take in asylum seekers from Greece and Italy, as they had promised in September 2015, threatening, for the first time, to take legal action if they continue to do so. Although relocations increased in February, they are a far cry from the original targets set by the Commission in 2015 when EU countries had agreed to share some 160,000 migrants and refugees who had reached Greek and Italian shores in the previous two years. Of this number, only 13,546 have since been relocated – 9,610 from Greece and 3,936 from Italy. The 2015 agreement between EU countries stipulated that there would be 3,000 relocations from Greece and 1,500 from Italy each month. In total, the agreement provided for the relocation of 63,000 from Greece by September this year.

But at the current rate achieving this target appears highly unlikely, even though Migration Commissioner Dimitris Avramopoulos said Thursday that the September target is still within reach. “There are no more excuses for the member-states not to deliver,” he said, insisting that “it is possible and feasible to relocate all those who are eligible from Italy and Greece by September.” Avramopoulos warned that if there are no tangible results by September, then the noncompliant countries will face legal action as the Commission “will not hesitate to make use of its power.” Only three EU states (Luxembourg, Malta and Finland) are close to fully meeting their obligations under the 2015 agreement. However, Hungary, Austria and Poland remain opposed to the agreement, while other countries, including the Czech Republic, Bulgaria, Croatia and Slovakia, say they are on board but will only take a limited number of asylum seekers.

With regard to the relocation of migrants and refugees from Turkey, EU countries have so far taken in 14,442 people, of whom 3,565 were Syrians. Meanwhile, the deal signed in March 2016 between Turkey and the EU to stem the flow of migrants into Europe is, so far, bearing results as the rate of daily arrivals on Greek islands has dropped significantly to about 43 per day, compared to as many as 10,000 on one day at the height of the influx in October 2015.

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Refusing to feed children, including thousands who try to reach family in Britain. Words fail.

Calais Mayor Bans Distribution Of Food To Refugees (G.)

The mayor of Calais has banned the distribution of food to migrants as part of a campaign to prevent the establishment of a new refugee camp as hundreds of people return to the port three months after the original one was demolished. Natacha Bouchart, from the centre-right Les Républicains party, said she would implement policies “to prevent the distribution of meals to migrants”, and legal documents setting out the restrictions were put up in the vicinity of the camp on Thursday. Officials have already obstructed attempts by local charities to open showers for teenage migrants in the town. Food distribution volunteers said they had been forced to do so in secret because of a heightened police presence. Refugee charities said they would ignore the ban but were taking legal advice.

The mayoral decree, dated 2 March, said the “regular, persistent and large presence of individuals distributing meals to migrants” in the area around the site of the former camp posed a threat to the peace and security of the area. It banned any “repeated, prolonged gatherings” in the area, in effect making food distribution an offence. Sarah Arrom, who has been helping to distribute food with the charity Utopia56 for the last four months, said police had fired teargas to prevent volunteers from giving breakfast to about 30 teenagers in a field near the motorway outside the city on Thursday. “They wanted to stop the distribution and they wanted to stop people from sleeping in the area,” she said. “There has never been teargas before when we’ve been trying to hand out food.”

[..] Christian Salomé, the president of the Auberge des Migrants charity, said a ban would be catastrophic for refugee children. “Adults will always find a way to buy food in the shops, but for minors it will be a real problem – they have no money at all.” He said no one had precise figures for the number of refugees around Calais. “People are arriving all the time and not many are getting through [to the UK].” Renke Meuwese, who works with Refugee Community Kitchen and Help Refugees, said the kitchens were making about 400 meals a day, up from about 50 last month. He said police seemed to be particularly concerned about reducing the visibility of refugees. “They are trying to make the refugees invisible, so they make it harder to distribute in town than the countryside. We can’t distribute at day so we have to do it at night. They are trying to push them out of sight.”

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Home Forums Debt Rattle March 3 2017

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    DPC North approach, Pedro Miguel Lock, Panama Canal 1915   • EU Votes To Suspend Visa-Free Travel To Europe For Americans (Tel.) • Snap IPO “The
    [See the full post at: Debt Rattle March 3 2017]

    #32929

    Chris M
    Participant

    In response to the posting Mr. Meijer made yesterday concerning David Stockman:

    Although I appreciate Mr. Stockman’s comments concerning the necessity to discern the quality and quantity of Federal government spending, I have yet to hear him say anything that demonstrates his acknowledgement of where real wealth is generated. The big piece of federal revenue comes from income tax. What is income? It’s production X price.

    Stockman come from the Reagan administration. Although I have to admit, I don’t know all that Stockman believes concerning economics, but I do remember a lot of the Reagan people talking about the Laffer curve and supply side economics.

    The Laffer curve supposed it was the government’s job to maximize taxable income. This certainly ignores that the government, unless it applies labor to natural resources it owns, does not produce anything. Remember, income is production X price.

    And when it comes to supply creating its own demand, the supply siders somehow left out the price part of the equation. Our dear commodity traders have a nasty habit of driving down that price to the point where there isn’t enough national income generated through the trade turn for that supply to be consumed.

    I want to commend Hotrod, who, the other day, posted that great interview of Mr. Michael Hudson. Mr. Hudson hammered a lot of nails squarely on the head.

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