May 032019
 
 May 3, 2019  Posted by at 1:49 pm Primers Tagged with: , , , , , , , ,  


Founding father of the EU, French economist and financier, Jean Monnet

 

 

Though I was doing other stuff and wanted to leave the whole Brexit issue alone for a while anyway (boring!), the outcome of yesterday’s local elections, which saw both the Tories and Labor lose bigly while the only real anti-Brexit party, the LibDems, gained a lot, made Theresa May declare that “the British people made clear they want Brexit delivered”. And peace is war too.

So I thought I’d re-run this piece which I wrote the day before the Brexit vote, June 22 2016, as “The European Union: Government by Deception”. I still think Brexit could be a feasible and even good thing, but not the way it’s been executed this time. I would be very careful with the next steps, whichever they are. What an incredible mess. They couldn’t have done worse if they tried.

 

 

I stumbled upon an article by Day of the Jackal author Frederick Forsyth, published last week in the Daily Express, that I think every Briton and European and everyone else should read. Forsyth doesn’t delve into the American pressure to form a European Union as a counterweight to the Soviet Union, he sticks with ‘founding father’ Jean Monnet and his reasoning behind the particular shape the Union took. And that is bad enough.

All Forsyth has to do is to quote from Monnet’s work, and I have to admit that while reading it I increasingly got the feeling that it’s quite remarkable that no-one, especially no journalist, does this. It’s there for everyone to see, but that means little if and when no-one actually sees it.

I have repeatedly talked about how the very structure of the EU self-selects for sociopaths and/or worse, but perhaps not enough about how that was deliberately built into the design. A feature not a flaw.

And I don’t think Monnet ever thought about how structures like that develop over time, in which the flaws in that design become ever more pronounced and the more severe cases of sociopathy increasingly take over the more powerful positions. A development that is well visible in present day Brussels.

For me, as I’ve written before, being here in Athens these days is plenty testimony to what the EU truly represents. Not only do we need to help feed many tens of thousands on a daily basis, depression levels are up 80% or so and life expectancy is plunging because proper health care is ever further away for ever more people in a country that not long ago had a health care system anyone would have been proud of.

That is the EU. And, yeah, Britons, do reflect on the NHS. Sure, you can argue it’s not the EU but Cameron and his people that are breaking it down, but it’s also Cameron who is pleading with you to vote to stay in the union.

If it can do this today to one of its member states, it will do it tomorrow to others, and more, if it sees fit. The benefits of the union flow to a select few countries, and to a select few within those countries. And ever fewer are selected as economic policies continue to fail.

It is frankly beyond me to see why anyone would want to be part of that. It’s not about Boris Johnson or Nigel Farage or George Osborne, that is just more deception. It’s about being ruled by midgets, as Forsyth puts it.

Here are some snippets from Frederick Forsyth’s article:

Birth of superstate: Frederick Forsyth on how UNELECTED Brussels bureaucrats SEIZED power

There was nothing base or inhumane about Jean Monnet, the French intellectual now seen as the founding father of the dream, nor those who joined him: De Gasperi the Italian, Hallstein the German, Spaak the Belgian and Schumann the Frenchman. In 1945 they were all traumatised men. Each had seen the utter devastation of their native continent by war and after the second they swore to try for the rest of their lives to ensure nothing like it ever happened again. No one can fault that ambition.

First Monnet analysed what had gone wrong and became obsessed by one single fact. The German people had actually voted the Austrian demagogue into the office of chancellor. What could he, Monnet, learn from this? What he learned stayed with him for the rest of his life and stays with us today in the EU.

The continent of Europe, from western Ireland to the Russian border, from Norway’s North Cape to Malta’s Valletta harbour, must be unified into one huge superstate. Politically, socially, economically, militarily and constitutionally.

There could be no war between provinces so war would be banished. (For a man who had witnessed the Spanish Civil War that was an odd conclusion but he came to it. And there was more).

As coal, iron and steel were the indispensable sinews of war machinery, these industries should be unified under central control. Thus would also be prevented any single state secretly rearming. That at least had the benefit of logic and the Coal and Steel Community was his first success.

But the big question remained: how should this Europe-wide single state be governed? Then he came to the conclusion that still prevails today. In the 1930s democracy had failed. In Germany, Italy and elsewhere desperate people had flocked to the demagogues who promised full bellies and a job in exchange for marching, chanting columns.

So democracy must go. It could not be the governmental system of the new Utopia. It was not fit to be. (He was already president of the Action Committee for the Superstate, his official title. There is nothing new about the word superstate).

Instead there would be a new system: government by an enlightened elite of bureaucrats . The hoi polloi (you and me) were simply too dim, too emotional, too uneducated to be safely allowed to choose their governments.

It never occurred to him to devise a way to strengthen and fortify democracy to ensure that what happened in Italy and Germany in the 1920s and 1930s could not happen again. No, democracy was unsafe and had to be replaced. (This is not propaganda, he wrote it all down).

He faced one last stigma as he sought the support of the six who would become the kernel of his dream: Germany (still ruined by war), France (fighting dismal colonial wars in Indochina and Algeria), Italy in her usual chaos, Holland, Belgium and tiny Luxembourg. How could the various peoples ever be persuaded to hand over their countries from democracy to oligarchy, the government of the elite? Let me quote from what he wrote:

“Europe’s nations should be guided towards the Super-state without their people understanding what is happening. This can be accomplished by successive steps, each disguised as having an economic purpose, but which will eventually and irreversibly lead to federation.”

In other words he could not force them (he had no tanks). He could not bribe them (he had no money). He could not persuade them (his arguments were offensive). Hence the deliberate recourse to government by deception. Both nostrums continue to this day. Study the Remain campaign and the people behind it.

Almost without exception they are pillars of the establishment, London-based, accustomed to lavish salaries, administrative power and enormous privilege. None of this applies to 95% of the population. Hence the need for deception.

At every stage the Remain campaign has stressed the issue is about economics: trade, profits, mortgages, share prices, house values – anything to scare John Citizen into frightened submission. The gravy train of the few must not be derailed. Some of them are already sticking pins into a wax figurine of David Cameron for being soft enough to offer the proles a chance to recover their parliamentary democracy and thus their sovereignty.

Forsyth then continues with a bunch of typically British issues, and ends with:

[..] You have repeatedly been told this issue is all about economics. That is the conman’s traditional distraction. This issue is about our governmental system, parliamentary. Democracy versus non-elective bureaucracy utterly dedicated to the eventual Superstate.

Our democracy was not presented last week on a plate. It took centuries of struggle to create and from 1940 to 1945 terrible sacrifices to defend and preserve.


It was bequeathed to us by giants, it has been signed away by midgets.

Now we have a chance, one last, foolishly offered chance to tell those fat cats who so look down upon the rest of us: yes, there will be some costs – but we want it back.

Apr 102019
 
 April 10, 2019  Posted by at 8:59 am Finance Tagged with: , , , , , , , , , , , ,  


Marcel Duchamp The chess game 1910

 

Putin Derangement Syndrome After Mueller (SCF)
‘Mountain Brought Forth A Mouse’: Putin On Mueller Report (RT)
Same People Behind Iraq War Lies Pushed Russian Collusion (Kelly)
May’s Hopes Dashed As EU Targets Brexit Delay Of Up To A Year (G.)
UK Finance Minister Says Lawmakers Might Revoke Brexit To Prevent No Deal (R.)
Democracy Is Overrated – Let The Queen Sort Out Brexit (Jan Fleischhauer)
Brexit Explained In Two Words: Basil Fawlty (G.)
IMF Says No-Deal Brexit Risks Two-Year Recession For UK (G.)
China To Join FAA’s Review Panel On Boeing’s 737 MAX (R.)
Boeing Shareholders Sue Over 737 MAX Crashes (R.)
India’s Modi Rides Nationalist Fervor Ahead Of Election (R.)
Two-Thirds Of Glacier Ice In The Alps ‘Will Melt By 2100’ (G.)

 

 

Like this. Contains dozens of links in the original.

Putin Derangement Syndrome After Mueller (SCF)

The West – its governments and its governments’ scribes – are obsessed with Russian President Vladimir Putin. “Obsessed” is probably too weak a word to describe the years of impassioned coverage, airy speculation and downright nonsense. He is the world’s leading cover boy: military hats, Lenin poses, imperial crowns, scary red eyes, strait-jackets, clown hats; anything and everything. He’s the avatar of Stalin, he’s the avatar of the Tsars, he’s the Joker, he’s Cthulhu, he’s Voldemort, he’s Satan. He’s the palimpsest for the New World Order’s nightmares. Putin is always messing with our minds. He weaponises information, misinformation and sexual assault accusations. Childrens’ cartoons, fishsticks, Pokemon and Yellow Vests, “Putin’s warships” are lurking when they aren’t stalking; “Putin’s warplanes” penetrate European airspace; “Putin’s tanks”, massing in 2016, massing in 2018, still massing. His empire of rogue states grows. All Putin, all the time.


[..] The entire ramshackle construction is collapsing: if Mueller says there was no collusion then even the last ditch believers will have to accept it: Robert Mueller Prayer Candles are out of stock, time to toss the other tchotchkes, it wasn’t a Mueller Christmas after all. Clinton’s fabrication had two parts to it: 1) Putin interfered/determined the election 2) in collusion with Trump. When the second part is blown up, so must the first be. And then what will happen to all the loyal little allies crying “ours were interfered with too”!? The two halves of the story had the same authors and the same purpose: if one dies, so must the other. Now that Trump is secured from the obstruction charges that hung there as long as Mueller was in session, he is free to declassify the background documents that will show the origin, mechanics, authors and extent of the conspiracy. And he has said he will. In the process, both halves of the story will be destroyed: they’re both lies.

Read more …

Can we get back to talking now? Don’t hold your breath.

‘Mountain Brought Forth A Mouse’: Putin On Mueller Report (RT)

The Mueller probe has caused much fuss but predictably did not find any evidence to prove Donald Trump colluded with Russia, Vladimir Putin has said, sarcastically likening it to a “mountain bringing forth a mouse.”
“We said from the very beginning that this Mueller commission will find nothing because we know it better than anyone: Russia did not meddle in any US election, there was no collusion between [US President Donald] Trump and Russia that Mr. Mueller was looking for,” Putin told the International Arctic Forum on Tuesday.


Taking a lighter tone, the president said that the outcome was predictable, likening it to “a mountain that has brought forth a mouse.” According to Putin, US President Donald Trump “knows better what witch hunts are.” This was “a dark chapter in American history,” and no one wants to see it “come back.” The long-awaited report from the Mueller probe was submitted in late March to Attorney General William Barr. The inquiry specifically targeted alleged collusion between Trump’s 2016 presidential campaign team and Moscow. However, its key conclusions mentioned no evidence of a conspiracy.

Read more …

This is the same as me saying Trump’s enemies are the same as Assange’s enemies.

Same People Behind Iraq War Lies Pushed Russian Collusion (Kelly)

In between the two scandals was more than a decade of recriminations against once-trusted experts on the Right who led our nation into battle. The Iraq war cost the lives of more than 4,400 U.S. troops, maimed tens of thousands more and resulted in an unquantifiable amount of emotional, mental, and physical pain for untold numbers of American military families. Suicide rates for servicemen and veterans have exploded leaving thousands more dead and their families devastated. And it has cost taxpayers more than $2 trillion and counting. So, these discredited outcasts thought they found in the Trump-Russia collusion farce a way to redeem themselves in the news media and recover their lost prestige, power, and paychecks.

After all, it cannot be a mere coincidence that a group of influencers on the Right who convinced Americans 16 years ago that we must invade Iraq based on false pretenses are nearly the identical group of people who tried to convince Americans that Donald Trump conspired with the Russians to rig the 2016 election, an allegation also based on hearsay and specious evidence. It cannot be an innocent mistake. It cannot be explained away as an example of ignorance in the defense of national security or democracy or human decency. It cannot be justified as a mere miscalculation based on the “best available information at the time” nor should we buy any of the numerous excuses that they offered up to rationalize the war.

So why did they do it? Why did Kristol, McCain, Frum, Boot, et. al., dive headlong and without shame into a domestic political war with just as much thoughtless braggadocio as they brought to the disastrous Iraq war? Clearly, this war did not have the same deadly results as the war in Iraq but, nonetheless, it fueled an unprecedented degree of anger and division among our countrymen and toward our new president. It ensnared innocent people who suffered real-life consequences, their fate grotesquely cheered by these mendacious fraudsters. Why?

If you had the blood of so many young Americans and more than 100,000 Iraqis on your hands because you peddled a lie, wouldn’t you be a tad more cautious before repeating that kind of mistake? If you assured Americans that the Iraq war would last just a few months, as Bill Kristol said in 2002, but instead it ended up lasting eight years, wouldn’t you be chastened about making more predictions? If your actions led directly to the election of a Democratic president who launched his winning campaign based on your egregious failures, wouldn’t you hesitate before inserting yourself in another scandal that gave fodder to your political opponents at your expense?

Read more …

The EU has zero reason to grant another short delay. Nothing has changed.

May’s Hopes Dashed As EU Targets Brexit Delay Of Up To A Year (G.)

Theresa May’s request for a short Brexit delay has been torn up, putting the EU on track to instead extend Britain’s membership until 2020.Despite the prime minister’s desperate dash to Paris and Berlin to convince leaders of her plan to break the Brexit impasse, the European council president, Donald Tusk, signalled EU politicians’ lack of faith in her cross-party talks. Against a backdrop of growing support among the EU27 for a lengthy Brexit delay, Tusk picked apart May’s appeal for a shorter delay to 30 June in a letter to the leaders inviting them to Wednesday’s summit, where they will agree the new end date.


An EU diplomat said on Tuesday, following a late-night meeting of ambassadors, that the two end dates crystallising in EU capitals were the end of December or the end of March 2020. A cabinet source voiced doubts over whether May could survive after presiding over such a long delay to Brexit, after previously having said she could not “as prime minister” accept a longer delay than 30 June. The source said some in No 10 now accept it is nearly game over and described all options as very difficult for the prime minister, raising questions about whether she can keep her warring party together much longer. May is facing a bitter backlash within her party over the likelihood of a long delay to Brexit and participation in EU elections, especially if that leads to any sort of deal with Labour involving a customs union.

Read more …

May was very careless in signing Article 50 when she did. But it made the Brexiteers happy.

UK Finance Minister Says Lawmakers Might Revoke Brexit To Prevent No Deal (R.)

British finance minister Philip Hammond raised the prospect of lawmakers revoking Article 50 this week rather than allowing Britain to leave the European Union without a deal if talks collapse, the Telegraph reported on Tuesday. Hammond warned that the value of the pound could fall significantly if Prime Minister Theresa May fails to reach agreement on a Brexit delay with Brussels, the Telegraph said. He made the comments during a meeting on Tuesday with other ministers in which various scenarios were discussed, the paper said, without citing sources. May invoked Article 50 to give notice that Britain was leaving the EU over two years ago, but the details of how, when and even if Brexit will happen are still far from clear.

Read more …

From Der Spiegel columnist.

“When she was born, the British empire stretched from Newfoundland to Papua New Guinea and covered almost a quarter of the world’s population. Today, Britain is a lovely island in the middle of the North Sea..”

Democracy Is Overrated – Let The Queen Sort Out Brexit (Jan Fleischhauer)

From Germany, it looks like the UK monarch is in the perfect position – after all, she has always responded to crises with dignity …

If there is someone who still reacts in the most difficult situations with dignity and decency, it is Queen Elizabeth II. I mean, this is the woman who survived Hitler and his V2s, the Great Smog, the “winter of discontent” and all the other trials and tribulations of her kingdom over the last nine decades. Surely, some well-placed words from her and this whole mess can be resolved. I often wonder how, sitting in Buckingham Palace, the Queen views the situation. When she was born, the British empire stretched from Newfoundland to Papua New Guinea and covered almost a quarter of the world’s population. Today, Britain is a lovely island in the middle of the North Sea that is rapidly becoming the size of Iceland in terms of political importance.

What does the Queen think of people who blithely painted a nation’s future in the rosiest colours and are now surviving from day to day? Royal courts traditionally indulged clowns who were permitted to make fools of them. But no self-respecting monarch would have come up with the idea of entrusting the fool with the fate of the country. I know there are narrow limits to the power of the Queen in a constitutional monarchy. But if you ask John Bercow to take a close look at the archives, he may find a precedent – moments when the power of government was transferred to the Queen when the country’s destiny is on the line. That’s the advantage of looking back on a few centuries of monarchist tradition: somewhere there is always a clause that legitimises you.

Read more …

“At moments, we all wish to retreat to an imaginary place: a womb with a view, if you will.”

Brexit Explained In Two Words: Basil Fawlty (G.)

In a crumbling edifice, a farce plays out. The hapless central character fawns on an aristocrat who turns out to be a conman. He then fails to disguise his unease when confronted with his European neighbours, doesn’t bother to mask a thorough contempt for the Irish, and enters a love-hate relationship with ostentatiously wealthy Americans. Meanwhile, there are questions over food safety and supply (specifically kippers, duck and veal cutlets) as workers scurry around trying to pretend that nothing out of the ordinary is happening. Always disaster hovers at the edge of vision.


[..] Fawlty Towers was, above all, an ensemble piece about isolation. It was a portrait of rage and frustration, an exploration of the impotence that results when the world as we wish it to be is so agonisingly at odds with the world as it is. It was the Brexit mindset incubating in the shabby surroundings of a down-at-heel hotel that had seen far better days. [..] Fawlty Towers now appears to have something of the downright prophetic about it. But let’s try to extract a moment of hope for these bleak times. In the end, whether clonked by a moose’s head, thrashing a recalcitrant car with a branch, derailed by a drunken Greek chef or outwitted by a wily Irish builder, Basil doesn’t get his way. His peculiar aspirations are curtailed and forced to conform to the realities of a complex, nuanced world.

Read more …

2-3-5-10-25, the IMF doesn’t know more than you and I.

IMF Says No-Deal Brexit Risks Two-Year Recession For UK (G.)

Britain’s already struggling economy would be pushed into a two-year recession by a no-deal Brexit, the International Monetary Fund has warned. Ahead of Theresa May’s plea to EU leaders for a further delay to Britain’s departure, the IMF used a downbeat half-yearly assessment of the global economy to predict that the UK economy could be 3.5% smaller than expected by 2021 if trade barriers were swiftly erected. The World Economic Outlook – completed in March before the latest developments in Brexit – predicted UK growth of 1.2% in 2019 on the assumption that a Brexit deal is done.


Growth in 2020 has also been revised down – by 0.1 points to 1.4% – since the fund’s last WEO in October, but the IMF said its projections were surrounded by uncertainty. It said there were alternative no-deal scenarios in which the UK would be hit by trade barriers, customs delays, barriers to financial services firms and the loss of preferential access to non-EU countries under trade deals negotiated by Brussels. The impact of these would be enough to cause output to decline in 2019 and 2020. It stressed that “a no-deal Brexit that severely disrupts supply chains and raises trade costs could potentially have large and long-lasting negative impacts on the economies of the United Kingdom and the European Union”.

Read more …

They’ll bring their Huawei phones I’m sure.

China To Join FAA’s Review Panel On Boeing’s 737 MAX (R.)

China has decided to accept an invitation to join the U.S. Federal Aviation Administration’s (FAA) review panel on the Boeing 737 MAX, an official at the Chinese aviation regulator said on Tuesday. The FAA said last week it was forming an international team to review the safety of the aircraft, grounded worldwide following two deadly crashes – in Indonesia in October and in Ethiopia last month – that killed nearly 350 people. China was the first to ground the newest version of Boeing’s workhorse 737 model last month following the Ethiopian Airlines crash, prompting a series of regulatory actions by other governments worldwide.


The Civil Aviation Administration of China (CAAC) has decided to send experts to be part of the FAA panel, the official, in the regulator’s media relations department, told Reuters. The CAAC said last week that it has been invited to join the panel. Chinese airlines operated 97 of the 371 737 MAX jets in service before the grounding, the most of any country, according to Flightglobal data. Canada, the United Arab Emirates, and Singapore have already confirmed that they will join the panel. The European Aviation Safety Agency did not respond immediately to a request for comment on whether it would join the panel.

Read more …

Wait till the victims’ families start suing.

Boeing Shareholders Sue Over 737 MAX Crashes (R.)

Boeing Co’s legal troubles grew on Tuesday as a new lawsuit accused the company of defrauding shareholders by concealing safety deficiencies in its 737 MAX planes before two fatal crashes led to their worldwide grounding.The proposed class action filed in Chicago federal court seeks damages for alleged securities fraud violations, after Boeing’s market value tumbled by $34 billion within two weeks of the March 10 crash of an Ethiopian Airlines 737 MAX. Chief Executive Dennis Muilenburg and Chief Financial Officer Gregory Smith were also named as defendants.


According to the complaint, Boeing “effectively put profitability and growth ahead of airplane safety and honesty” by rushing the 737 MAX to market to compete with Airbus SE, while leaving out “extra” or “optional” features designed to prevent the Ethiopian Airlines and Lion Air crashes. It also said Boeing’s statements about its growth prospects and the 737 MAX were undermined by its alleged conflict of interest from retaining broad authority from federal regulators to assess the plane’s safety. Richard Seeks, the lead plaintiff, said Boeing’s compromises began to emerge after the Ethiopian Airlines crash killed all 157 onboard, five months after the Lion Air crash killed 189.

Read more …

900 million voters. 4x US?! Did Modi antagonize Pakistan to boost his chances?

India’s Modi Rides Nationalist Fervor Ahead Of Election (R.)

India’s prime minister is rallying his nationalist base as the world’s biggest democracy begins a general election on Thursday, but it has become tighter than anticipated, thanks to dwindling incomes for farmers and scarce jobs. Polls predict Narendra Modi’s Bharatiya Janata Party-led (BJP) alliance will just win a parliamentary majority, a sharp drop from his commanding mandate five years ago, when he vowed to turn India into an economic and military power. But his government’s inability to create a million jobs every month, and ease farmers’ distress over low product prices, has taken the shine off what is still the world’s fastest growing major economy.

From sugar farmers in northern Uttar Pradesh going unpaid for produce, to small businesses in the south shut because they are unable to meet the requirements of a new, unifying national tax, discontent has brewed for months. “The election has become a lot closer than we think, sitting in Delhi,” said Nilanjan Mukhopadhyay, author of a Modi biography and books on Hindu nationalist groups. “There is anger and disillusionment in the countryside.” In December, alarm bells rang for Modi’s Hindu nationalists after it lost three key states to the main opposition Congress and its allies, led by Rahul Gandhi. But a surge in tension with traditional foe Pakistan in February has pushed Modi ahead, as he projects himself as a defender of national security and paints his rivals as weak-kneed, sometimes even questioning their patriotism.

“People were very unhappy, angry that Modi makes tall promises and doesn’t deliver,” said Shiv Chandra Rai, an Uber driver in the commercial capital of Mumbai. “Everyone said there are no jobs, everywhere farmers are struggling. But on this issue of Pakistan we are confused now. Some people feel we have to vote for Modi on this issue, it is a national problem.” Modi ordered air strikes on a suspected camp of a militant group in Pakistan after it claimed responsibility for a deadly bombing in Indian Kashmir, launching the first such raid since the neighbors’ last war in 1971. The nuclear-armed foes engaged in a dogfight after Pakistan sent warplanes into India the next day. They also threatened each other with missile strikes, before Western powers, led by the United States, pulled them back.

Read more …

So many millions of Europeans who depend on the Alps for drinking water.

Two-Thirds Of Glacier Ice In The Alps ‘Will Melt By 2100’ (G.)

Two-thirds of the ice in the glaciers of the Alps is doomed to melt by the end of the century as climate change forces up temperatures, a study has found. Half of the ice in the mountain chain’s 4,000 glaciers will be gone by 2050 due to global warming already baked in by past emissions, the research shows. After that, even if carbon emissions have plummeted to zero, two-thirds of the ice will still have melted by 2100. If emissions continue to rise at the current rate, the ice tongues will have all but disappeared from Alpine valleys by the end of the century. The researchers said the loss of the glaciers would have a big impact on water availability for farming and hydroelectricity, especially during droughts, and affect nature and tourism.


“Glaciers in the European Alps and their recent evolution are some of the clearest indicators of the ongoing changes in climate,” said Daniel Farinotti, a glaciologist at ETH Zurich in Switzerland and one of the research team. “In the pessimistic case, the Alps will be mostly ice-free by 2100, with only isolated ice patches remaining at high elevation, representing 5% or less of the present-day ice volume,” said Matthias Huss, a senior researcher at ETH Zurich. In February, a study found that a third of the huge ice fields in Asia’s towering mountain chains were also doomed to melt because of climate change, with serious consequences for almost 2 billion people downstream. Glaciers along the Hindu Kush and Himalayan range are at higher, colder altitudes, but if global carbon emissions are not cut, two-thirds of their ice will melt by 2100.

Read more …

Mar 292019
 
 March 29, 2019  Posted by at 1:19 pm Finance, Primers Tagged with: , , , , , , , , ,  


Leonardo da Vinci Vitruvian man c1510

Leonardo wrote: “Vitruvius, architect, writes in his work on architecture that the measurements of man are distributed in this manner”:

The length of the outspread arms is equal to the height of a man.
From the hairline to the bottom of the chin is one-tenth of the height of a man.
From below the chin to the top of the head is one-eighth of the height of a man.
From above the chest to the top of the head is one-sixth of the height of a man.
From above the chest to the hairline is one-seventh of the height of a man.
The maximum width of the shoulders is a quarter of the height of a man.
From the breasts to the top of the head is a quarter of the height of a man.
From the elbow to the tip of the hand is a quarter of the height of a man.
From the elbow to the armpit is one-eighth of the height of a man.
The length of the hand is one-tenth of the height of a man.
The root of the penis [Il membro virile] is at half the height of a man.
The foot is one-seventh of the height of a man.

 

 

It’s almost silly to write anything on Brexit right now, because at right now+1 everything may have changed again. But almost silly is not the same as completely silly. At this point, whatever the outcome will be, it will serve to ridicule the idea and image of the UK as a functioning democracy. Something that ironically all participants in the Kabuki theater claim to be intent on preventing.

Both major parties -and supposedly other politicians too- say that “not respecting” the result of the Brexit referendum would imperil democracy. But “respecting” it at all cost will imperil it just as much, if not more.

On June 23, 2016, people voted on the question: “Should the United Kingdom remain a member of the European Union or leave the European Union?” But nobody knew what they were voting for, and that’s reflected in today’s lack of agreement on what Brexit means, almost 3 years after the vote.

People had been inundated with promises about what Brexit would mean, especially from the Leave side, anxious to paint a vision of a wealthy country ‘finally’ able to sign it own trade deals with the world, free from compulsory contributions to Brussels. But none of these things were facts, they were promises, most of whom have so far turned out to be empty.

The notion that it is the summit of democracy to make people vote on things they don’t understand (because no-one can tell them) is a curious one. And it’s perhaps even more curious to maintain that voting when people have a better idea of what their vote will entail is undemocratic. That would open a “chasm of distrust”, is the claim. In reality that chasm has long been opened, just by the behavior of politicians.

What is happening as we speak is that politicians are free to turn on a dime – and do just that- when it comes to who or what they elect to support, but people are not. And that is being presented, by both left and right, as -more- democratic. They would like you to believe this is how a democracy should function, but none of that is cast in stone. It’s just another idea.

Underlying this idea about democracy is undoubtedly to some extent the fear of violent reactions from the Leave side if there were to be a second referendum, or if Brexit gets postponed “too long”. But do they really expect the country to accept all this cattle trading lying down, where MPs scramble to find something, anything that is accepted by a narrow margin, and that narrow margin will be used to push through Brexit, which itself was voted through by a narrow margin?!

That’s a serious question that no-one seems to ask: do they believe the 6 million people who have signed an anti-Brexit petition, and the over 1 million who marched in London on March 23, and who may come out in even larger numbers on the 30th, to remain peaceful after having witnessed how their interests are being squandered by politicians jockeying for position?

 

In the June 23, 2016 referendum, the Leave side got 17,410,742 votes (51.89%) while Remain got 16,141,241 votes (48.11%). That’s awfully close. In most jurisdictions it would be impossible to hold a vote with so much potential impact on a country, on its legal system, its trade etc., with such margins. Often if not mostly, a 2/3 majority would be needed to make such drastic changes.

There are solid reasons for such legal requirements. Many people would summarize them as guaranteeing the quality of a democracy. To name an example, one would expect a potential petition to get rid of Britain’s royal family to not be decided by just one vote either.

But that’s what is very much possible in the case of Brexit. If one of the 8 indicative votes held in Parliament had gotten a one vote majority, it could have dictated the way forward. The same is true for Theresa May’s deal, even after suffering two historically large losses in the house. Boris Johnson left government because of it, then said he’s sign up anyway, and the day after did a 180º again. Is it that strange that a democracy would want to build in a few safeguards against such shenanigans?

 

But perhaps most of all, what other countries would turn to much sooner when mired in a mess such as Brexit under May has become, is a national government. Because that is the ultimate instrument to make sure your democracy functions. Provided it’s executed in good faith. Such a government need not consist of -only- politicians either. Which fits in nicely with the anonymous comment from the Guardian that I posted under the title The Failure of Party Politics earlier this week:

We are no longer able to govern, we cannot lead and we cannot decide. We must return the question of our place in the world back to the people and once that’s done we must dissolve this house and our parties and a new slate be mined because right now not one of us is fit to stand in this place and claim leadership of this disunited kingdom.

Drag the UK out of the EU on 1 or 2 votes now, after almost 3 years of chaos and incompetence, and you’re pretty much guaranteed to end up with more chaos, at least some of which will not have a peaceful character. In order to prevent that from happening, take a step back and start talking to each other. In a venue other than that Parliament, because it has failed the people.

You can renege on May’s article 50 decision and continue in the EU, just with a lot of broken trust. But push through May’s contorted plans today and you’re stuck outside pretty much forever. There’s a lot wrong with the EU, and there’s little wrong with the idea in itself of leaving it, but people didn’t vote to Leave only to get stuck with even more incompetence than they had with Brussels. And chances are they simply won’t accept it.

So forget about your party politics, that system is dead regardless of any outcomes, you’ve just shown that day after exasperating day. Get a group of judges and lawyers and business people and people from all walks of life together and start a national conversation based on trust. You’re not going to like any of the alternatives.

By sticking to the Brexit process as it’s been developing up to this point you’re not guaranteeing democracy, you’re guaranteeing its demise.

NB: I fully expect you to continue as you have. I have good friends who live in the UK, and many readers, but it’s not where I reside, so it’s not really any skin off my back. But you guys hurt my eyes. As I wrote earlier today: Sometimes I wonder what John Lennon would have said.

 

 

Jan 302019
 
 January 30, 2019  Posted by at 7:58 pm Primers Tagged with: , , , , , , , , , , , ,  


Jan van Eyck Madonna and Child at the Fountain 1439 (height: 7.4“, 19 cm)

 

It’s educational and even somewhat entertaining to observe the role of the western press in the ongoing erosion and demise of democracy in Europe. But while it’s entertaining, it also means their readers and viewers don’t get informed on what is actually happening. The media paints a picture that pleases the political world. And it it doesn’t please politicians to lift a veil here and there, too bad for the public.

The Shakespearian comedy that was performed last night in the UK House of Commons is a lovely case in point. Basically, MPs voted whether or not to allow PM Theresa May to change the Brexit deal she had told them about a hundred times couldn’t possibly be changed. Brexit has turned full-blown Groucho by now: “Those are my principles, and if you don’t like them… well, I have others.”

It was exactly two weeks ago last night that lawmakers voted by a historic 432 to 202 count to reject May’s Brexit deal. And now they voted to a) let her change it and b) go talk to the EU about changing it though Brussels has said as often as May herself that it cannot be changed. Remember: the UK is set to leave the EU 59 days from now, and counting.

It’s like in a game of chess that has long turned into a stalemate or threefold repetition situation: you stop playing. No such luck in British politics. The only way the parliament could find ‘unity’ (in a narrow vote) was to agree to ditch the Irish backstop that is an integral part of why the EU accepted May’s deal to begin with.

There are/are even serious voices saying Ireland should leave the EU along with the UK, to make it easier for the latter to do what the former absolutely doesn’t want. That’s also part of the kind of mindset in which this plays out. Brexit has turned into a complete delusion, in which bickering and blame-games have been more important than practical solutions, for all sides.

A hard Brexit is used as some ultimate deterrent, and 59 days before the big moment it may actually turn into the disaster some Project Fear or another has been talking about for over 2.5 years. If that time has been used the way it should have, adapting deals, agreements, contracts, laws, all might have been fine(r).

What the role of May’s opposition in all this consists of is ever more confusing. It certainly never was to profile itself or come up with original ideas. In the process, Jeremy Corbyn appears to have hurt his reputation as much, if not more, than May. Quite the achievement. And now May says Corbyn “has no plan for Brexit”, but she does: only, it was voted down in the largest defeat in modern parliamentary history.

And then all of a sudden, as everyone is busy doing something else, Britain finds itself in a huge crisis of democracy.

 

Over Two Thirds Of UK Public Don’t Feel Represented By Political Parties

More than two thirds of the British public feel they are not represented by the main political parties, according to a new report on the divisions caused by Brexit. Research by campaign group Hope Not Hate found that the disconnect had increased from 60% to 67% over the last six months as Theresa May negotiated the EU withdrawal agreement.

The poll of nearly 33,000 people and results from focus groups also revealed that many felt they were being left in the dark or were “overwhelmingly bored” by the process. It has also seen an increase in the proportion of the public feeling pessimistic about the future – with very few believing that Brexit will address the frustrations and inequalities that lay behind the vote to leave the EU in 2016.

More people also believe that Brexit is feeding prejudice and division and taking the UK “backwards”, up from 57% in July 2018 to 62% last month. Just 20% of people said they could trust the government to deliver a “good Brexit”. Almost as many Leavers (66%) as Remainers (75%) said they do not trust the government to deliver a Brexit that works for them.

None of the options being considered by parliament have consensus support across the UK, according to the report, and 42% of people think that it would be sensible to delay leaving the EU by a few months so we can agree a better deal with the EU or hold a Final Say vote.

Perhaps that is the topic that should have been discussed yesterday in the House of Commons. But the MPS far preferred to regurgitate long discredited useless stalemate ‘moves’. That’s how much they all care for their own voters. They go from one election to the next, and why would they care about the time in between, what could possibly happen to them?

Well, for one thing, pitchforks could happen. Which methinks is a clean poetic link to another European country that finds itself in deep crisis and distress but refuses to recognize it. France.

 

The interwebs are full of video’s and photos of police brutality perpetrated during the by now 11 Saturdays the Yellow Vests have protested president Macron and their people’s overall situations. It didn’t start out with all that violence, and sure, part of it may have been in response to protests, but what’s gone on in the last few Saturdays is something else.

And the media once again are silent, or mostly. Macron gets more coverage for telling Venezuela’s Maduro to resign than for his own regime’s cruelty towards its own people. But the French people do watch those videos, social media trump traditional ones in these cases, so there’s something good about them after all.

And the Yellow Vests, though the people don’t like the violence, still very much have their sympathy. Seeing Macron’s police beating them up the way they have will only increase the resolve. People losing their eyes, their hands, hundreds if not thousands with less severe but still serious injuries, it’s all being added to Macron’s tally.

 

French Police Weapons Under Scrutiny After Gilets Jaunes Injuries

The French government is under growing pressure to review police use of explosive weapons against civilians after serious injuries were reported during gilets jaunes street demonstrations, including people alleged to have lost eyes and to have had their hands and feet mutilated.

France’s legal advisory body, the council of state, will on Wednesday examine an urgent request by the French Human Rights League and the CGT trade union to ban police from using a form of rubber-bullet launcher in which ball-shaped projectiles are shot out of specialised handheld launchers. France’s rights ombudsman has long warned they are dangerous and carry “disproportionate risk”.

Lawyers have also petitioned the government to ban so-called “sting-ball” grenades, which contain 25g of TNT high-explosive. France is the only European country where crowd-control police use such powerful grenades, which deliver an explosion of small rubber balls that creates a stinging effect as well as launching an additional load of teargas.

The grenades create a deafening effect that has been likened to the sound of an aircraft taking off. France’s centrist president, Emmanuel Macron, is facing renewed calls to ban such weapons after Jérôme Rodrigues, a high-profile member of the gilets jaunes (yellow vests) demonstrators was hit in the eye on Saturday in Paris. He is said by his lawyer to have been disabled for life.

Rights groups say Rodrigues’s case is the tip of the iceberg. Lawyers estimate that as many as 17 people have lost an eye because of the police’s use of such weapons since the start of the street demonstrations, while at least three have lost their hands and others have been left with their face or limbs mutilated. Injuries have happened at demonstrations in Paris and other cities, including Bordeaux and Nantes.

The whole thing is utterly insane, but the craziest thing may well be the European Court of Human Rights rejecting a temporary ban on flash-balls last month. Go ahead, Emmanuel, we won’t tell a soul! Flash-balls being an improved -and ‘home-grown’- form of rubber bullets, which in turn have been ‘improved’ upon.

 

French ‘Flash-Ball’ Row Over Riot-Gun Injuries

Appalling injuries caused by French police riot guns during the yellow-vest protests have triggered anger and calls for the weapon to be banned. The LBD launchers known by protesters as “flash-balls” have left 40 people severely wounded, reports say. France’s human rights chief has called for the weapon’s use to be halted, but the government insists it is deployed only under very strict conditions.

Since the “gilets-jaunes” protests began in November, 3,000 people have been injured or even maimed and thousands more arrested. The LBD40 is described as a non-lethal weapon which in fact replaced the old “flash-ball” in France. But the old name is still widely used. It shoots 40mm (1.6in) rubber or foam pellets at a speed of up to 100m per second and is not meant to break the skin. However, some of the accounts of people hit by flash-balls have been shocking.

Volunteer firefighter Olivier Béziade, 47, was shot in the temple by a riot gun during a protest on 12 January in Bordeaux. Video at the time caught him running from police and then collapsing in the street, his face covered in blood. He was taken to hospital, treated for a brain haemorrhage and left in an artificial coma, from which he emerged on Friday. He was one of five seriously wounded on that day alone.

Many of those wounded have been young. One teenager called Lilian Lepage was hit in the face in Strasbourg on Saturday and suffered a broken jaw. His mother said he had been shopping in the city centre when a policeman fired at him. Two schoolboys were badly wounded by flash-ball pellets in separate protests last month. Campaigners say a dozen people have lost an eye ..

A lawyer for some of the victims, Étienne Noël, said many had been maimed. He said police did not have sufficient training in use of the riot guns and many victims had been hit in the head. Earlier this week police made clear the riot gun would be used only where security forces faced violence or if they had no other means of defence. Only the torso and upper or lower limbs could be targeted.

Interior Minister Laurent Nuñez told the French Senate on Thursday that the use of force by police was always proportionate and under very strict and controlled conditions. “If the police hadn’t used these means of defence perhaps some of them would have been lynched,” he said. The European Court of Human Rights rejected a temporary ban on flash-balls last month, in a case brought by several people who said they had been hit by flash-balls.

There is also a grenade version of the flash-ball, named the sting-ball. Throw it into a crowd and everyone around gets hit by rubber balls at high speed.

But of course it’s not the weapons that cause the injuries and deaths, it’s the people deploying them. And the people deploying these people. The instructions to use excessive violence because the government feels threatened by its own citizens. And after that the pitchforks and guillotines, real or not. Yanis Varoufakis was right a few weeks ago, Macron is a spent force.

Only a blind fool would use these things against his own people. Or a dictator with absolute power, but Macron doesn’t have that.. By the way, when is Brussels going to condemn Macron for his use of violence?

And this is all before the European elections, and Merkel’s goodbye that will throw Germany into chaos, and and and. Europe, we never knew ya.

 

 

Jan 142019
 
 January 14, 2019  Posted by at 7:41 pm Finance Tagged with: , , , , , , , , , , , , ,  


Johannes Vermeer The soldier and the laughing girl 1657

 

There will be elections for the European Parliament on May 23-26 2019. They will likely change the face of Europe more than anything has done since the EU was founded. That is not some wild prediction. Many European countries have held elections since the last European elections in 2014, and just about all had outcomes that shook up domestic political ratios.

In most cases, countries went from traditional parties to newly founded ones. France erased the Socialists and center-right in 2017, and the final round of the presidential elections was between Marine Le Pen’s Front National and Emmanuel Macron’s brand-new En Marche. Macron won sort of by default, because France as a country would never have voted for Le Pen.

In Italy, M5S and Lega have taken over. In Germany, Merkel’s CDU/CSU coalition lost bigly though it remained the biggest party, but Angela lost her ‘socialist’ SPD partner which gave up so much it didn’t want to be in government anymore. In Spain, Mariano Rajoy’s center right lost enough to cede power to the Socialists who came up tops because they played a smart game, not because the Spanish wanted it to rule.

We don’t have to go through all 27/28 different countries to establish that there are almost tectonic shifts happening all over, away from traditional parties and towards whoever showed up without insanely extreme views. And if you think this move is now completed, you may want to think again.

It’s amusing to realize that the country with the biggest political shift, the UK, is the only one that still hangs on to its traditional parties, and seeks its protest voice in a different way, namely through Brexit. That is, Britain shows it can get no satisfaction from the EU, whereas in the other major EU nations the dissatisfaction is projected onto domestic parties.

The underlying thought is the same: people are fed up with incumbent politicians and their affiliation with the European project. And nobody in Brussels really appears to be willing to realize this: the only thing they talk about is more Europe. But all these changes will now be reflected in the power politics of the European parliament.

And they do know that. They just hope they can limit the damage through the model in which power is divided in Europe. And to get any of that power, national parties need to find partners from other countries to form European parties (blocks) with. You need parties from at least 7 other nations to run for the European Parliament.

 

There are really only two parties in that parliament that really matter: the center right European People’s Party (EPP) which has 217 MEPs (members of European Parliament), and the center-left Progressive Alliance of Socialists & Democrats (S&D) which has 190 MEPs. Then there are the European Conservatives and Reformists – 74 MEPs, the Alliance of Liberals and Democrats for Europe (ALDE) – 70 MEPs, the European United Left/Nordic Green Left (GUE) – 52 MEPs, and the European Greens/European Free Alliance – 50 MEPs.

These numbers, like the national ones, are set to change, a lot. How exactly is hard to predict, because it’s not clear which block which -relatively- new party will be part of. But it’s not a wild guess to think that at the end of May the division of powers will not be left vs right (both of which are pretty much fake anyway), but pro-EU and anti-EU. Or rather, More Europe vs Less Europe.

Germany’s up-and-coming real right-wing AfD at their conference this weekend voted in a resolution that calls for getting rid of the European Parliament itself, calling it undemocratic, and claiming the “competence to make laws is exclusively for nation states.” Similar sentiments play out in Italy, Poland, Hungary and many other member states.

Given the changes in vote ratios mentioned before, it’s hard to see the More Europe model survive the elections. But that of course doesn’t keep the main parties (blocks) from running outspoken pro-Europe candidates to replace Jean-Claude Juncker as head chief after the elections. The EPP has German Europe stalwart Manfred Weber as ‘Spitzenkandidat’, the so-called Socialists/Democrats have Dutch Frans Timmermans, Juncker’s right-hand man.

They think they will be able to continue business as usual, and accumulate more power and sovereignty in the process, while support for the EU crumbles more by the day. But that’s all in the far far future, that is a whole 4 months away. And who knows what Europe will look like by then? Brussels sure doesn’t seem to know, or want to.

 

In Germany, the entire political system will have to reinvent itself after Merkel. And as said before, with an entire new look as far as vote numbers go. Far right and the Greens are on their way to becoming new power blocks, the Christian center right CDU/CSU and the formerly left SPD are on their way to much less support.

This is a pattern that plays out all over Europe, but what happens in Germany is, because of the way the EU is set up, crucial for all EU member states. Nothing happens in Europe without approval from Berlin. And what will the other 26 remaining members do when that level of power moves towards the AfD?

Of even more immediate concern may be Germany’s economic performance. Because the latest signs are not encouraging. Germany and Holland have done very well, but that is because they have all the others as their ‘domestic’ market. And now not even that turns out to be enough. Germany’s numbers are going down fast:

 

 

Then again, for now, worries about Germany will be trumped by those about France and Britain. The numbers of Yellow Vests in the streets of France was much larger again the past weekend than the last few ones. Macron keeps on making ever bigger mistakes. This Saturday, his riot police was filmed carrying semi-automatic weapons with live ammo. As he claimed that many of his people want to get things without making any effort.

Macron all along has tried to drive a wedge between the protesters and the people. But a large majority of the people support the protests, even if they don’t don a yellow vest. Still, Paris claims that the protesters are not the Republic, and they’re trying to overthrow democracy. When the Yellow vests approached government buildings last weekend, government spokesman Benjamin Griveaux fled, saying: “It wasn’t me who was attacked, it was the Republic.” Ergo: Not the people are the Republic, the government is. That should sell well.

For a very large number of French this sounds like they are not actually considered French by their own government. And now Macron insists on holding a national debate, in which everyone can have their say, but at the same time he insists he will not change his policies, which are what the Yellow Vests are protesting in the first place.

What they see is that Little Napoleon hasn’t hardly appeared in public for a very long time (big no-no!), but he does try to dictate to them what democracy is, and then in the same breath that they only have the choices he gives them. Protests are only allowed if the government gives permission, Paris proclaims.

Macron has cancelled his spot in the upcoming Davos spectacle for the wealthy and powerful, and I bet you the thought has crossed his mind that if he went he wouldn’t be allowed back in to his country. Not decisive, but that thought surely counts. He’s seen the whole Let Them Eat Cake scenario play out in his mind’s eye. Before putting his hand over his heart while looking in the mirror.

Macron does everything wrong than he can. And in that France has a lot in common with our for now last topic, subject, victim, take your pick, the UK.

 

Tomorrow Theresa May is going to lose another vote, and even if she doesn’t, chaos is still guaranteed. Both the Leave and the Remain camps, opposites as they are, are divided into countless other camps, and there is no way there will ever be an agreement. You’d have a hard time finding even just two people who think Brexit means the same, let alone millions.

I wrote earlier today I wondered how come Britain is so quiet in the face of that, with the Yellow Vests example just a few miles away. And I really don’t know. Maybe we’ll find out tomorrow. The EU has hinted Brexit may not happen until the summer, not on March 29. But that’s the EU, and that’s what the Brexit vote was meant to move away from, not let them dictate even more.

Theresa May basically sat on her hands for two years, and wanted to do the work in 6 months, but that was always going to be a pipedream. The UK, in 40-odd years of EU membership, signed up to thousands of pieces of legislation, which contain hundreds of thousands of pages of legalese. All that must be checked, if need be changed, negotiated about, voted on, etc.

Not something anyone can do in half a year, and that has nothing to do with liking the EU or not. May has held her country hostage for the entire time she’s been PM, and she does that even more now, as she’s saying it’s either her deal or no Brexit at all. She’s decided No Deal is not an option. Which may be wise in view of all those documents, but who is she to decide eth entire nation future for decades to come? She wasn’t even elected as PM.

We’ll know more tomorrow after that Parliament vote, which May will lose. Or will we? If Brussels accepts a major delay in Brexit, chances are May will stay in office, and we’ll have 4-5-6 more months of the same road to nowhere. Second referendum, general election? Poisoned chalices all of them.

Even if May wins the vote Tuesday, because she’s scared a sufficient number of MPs into a catatonic state, nothing will change either. All possible outcomes are guaranteed to have a large group of people standing against them. All options will create the appearance of a small group of people dictating life-changing events for everyone else.

Where are the British Yellow Vests? The mayor of Poland’s second-biggest city, Gdansk, was stabbed to death in public on a stage where he held a speech, Is that where we’re going?

And lest we forget, what happens in Europe is not very different from what happens in the US; things merely play out slightly differently in different locations. In the US, as in the UK, there are no whole new parties taking over, no AfD and Macron and Yellow Vests and Salvini, but there is Trump and Brexit.

The common denominator is people’s anger with the economic models that leave them scrambling to make do, all the while seeing their lives being taken away from them bit by bit while whoever’s in power keeps bankers and other rich folk contented.

It’s not much use seeing all this as separate incidents or developments. It’s a big wave that will reshape the world as we know it. Let Them Eat Cake has gone global, and there’s not nearly enough cake to go round.

 

 

Oct 012017
 
 October 1, 2017  Posted by at 2:02 pm Finance Tagged with: , , , , , , , ,  


Catalunya October 1 2017

 

I’ve seen a lot of videos and photos of the Catalonia attempt to hold a referendum today (Tyler has a “nice” series of them), and what struck me most of all, apart from the senseless violence police forces were seen to engage in, is the lack of violence on the side of protesters.

So when I see the Interior Ministry claim that 11 policemen were injured, That is hard to take serious. Not that the Catalans had no reason to resist or even fight back. That hundreds of protesters, including scores of grandma’s, are injured is obvious from watching the videos. Since rubber bullets were used in large numbers, fatal injuries are quite possible.

Policemen hitting peaceful older ladies till they bleed is shocking, and we are all shocked. Many of us will be surprised too, but we shouldn’t be. Spain is still the land of Franco, and his followers continue to exert great influence in politics, police and military. And it’s not just them: one video from Madrid showed people singing a fascist theme from the Franco era.

 

 

That’s the shape the EU knowingly accepted Spain as a member in, and that shape has hardly changed since. The total silence from Brussels, and from all its capitals, speaks volumes. Belgian PM Michel said earlier today that he doesn’t want to talk about other countries’ politics, and that’s more than I’ve seen anyone else say. It’s of course a piece of gross cowardly nonsense, both Michel’s statement and the silence from all others.

Because this very much concerns the EU. As Julian Assange tweeted “Dear @JunckerEU. Is this “respect for human dignity, freedom and democracy”? Activate article 7 and suspend Spain from the European Union for its clear violation of Article 2.” (Article 7 of the European Union Treaty: “Suspension of any Member State that uses military force on its own population.”) Sure, technically the Guardia Civil is not military, but are Juncker, Michel and above all Merkel really going to try and hide behind that?

Assange also re-tweeted this: “Claude Taylor Breaking: contact with Ecuadorian Govt says they plan on removing Julian Assange from their Embassy in London. Expect his arrest to follow.” Assange’s reaction: “DC based ex-White House claims I’m to be arrested for reporting on Spain’s censorship & arrests in Catalonia. Dirty.”

But that should not be a surprise either. We know from the example of Greece, and the treatment of refugees, what the morals of Europe’s ‘leaders’ are. Their morals are bankrupt. In that sense, they fit in seamlessly with those of Mariano Rajoy’s governing PP party in Spain.

 

 

Still, this is not why people want to be part of the EU. So unless very strong statements come from the various capitals, and very soon, given that they’re already way too late, the EU as a whole will find itself in such a deep crisis it might as well pack its bags and go home. Wherever home may be for these career politicians.

If you’re void of any and all ethics and morals, which is what that silence shouts out very loudly, you can’t lay any claim at all to the right to make decisions for anyone at all. That is true for Rajoy and his party, and it’s just as true for all other deadly silent European leaders.

And this is by no means over, it hasn’t started yet. Here’s a map of close vs open polling stations in Catalonia, via Assange. ‘Nuff said. What will Rajoy’s next move be? Locking up everyone? The entire Catalan governing party that organized the referendum? Make no mistake: the Spanish military have long threatened they would destroy Catalonia before allowing it independence.

 


Catalan polling stations. Green=open. Red=closed

 

Philosopher Anna M. Hennessey, who has lived in both Spain and in Catalonia, put it this way:

Franco was victorious and did not lose his war, as Hitler and Mussolini lost theirs, but this must not mean that we should let the dictator’s toxic ideological infrastructure persist any further into the twenty-first century. Supporting Catalonia is a necessary step in putting an end to fascism in Europe.

When Fascism Won’t Die: Why We Need to Support Catalonia

People in the United States, especially those from the 1980s onward, know little of Spain’s Civil War (1936-1939) and the long dictatorship that followed. This knowledge is helpful in understanding the situation in Spain and Catalonia right now. The judge (Ismael Moreno) who is set to decide on sedition charges against Catalan activists for attempting to hold a democratic referendum on October 1st, for example, has roots that are deeply connected to Francisco Franco (1892-1975), the military leader who initiated the Civil War, won it, and then went on to rule as Head of State and dictator in Spain for almost forty years.

Franco is a major figure of twentieth-century fascism in Europe. A purge of Francoist government officials never took place when the dictatorship ended in the 1970s, and this leadership has had a lasting impact on how Spain’s government makes its decisions about Catalonia, a region traumatized during and after the war due to its resistance to Franco’s regime. The lingering effects of Franco’s legacy are at this point well-documented and need to be a part of the discourse that surrounds what is quickly unraveling in Barcelona.

[..] Like the Spanish government, the Spanish police force was never purged of its Francoist ties following the dictatorship. It is a deeply corrupt institution [..] Manuel Fraga Iribarne, one of Franco’s ministers during the dictatorship, founded Prime Minister Mariano Rajoy’s Popular Party. The party is currently enmeshed in a corruption scandal of its own. Spain’s royal family is similarly linked to Franco and has also been brought to trial for its own set of corruption charges. It is impossible to ignore the fascist bedrock upon which modern Spain is founded, or to ignore the reality that this foundation has to do with the way Spain treats Catalonia.

And so we can see the dream of a united Europe die. At least one that most people will feel comfortable living in. And if you can’t achieve that, why have a union to begin with? Democracy in Europe is dying in Brussels, it’s dying in Greece and the Mediterranean, and it died today in the streets of Barcelona and other Catalan locations.

Are all Europeans simply going to sit back and wait till it dies where they live, too? My bet is they will only do that until they no longer see the EU as economically beneficial to them. And as of today, because of Catalunya, economics will no longer be the only consideration. Because Spain will not be thrown out, not even suspended. There will be lots of empty strong words, but not all Europeans are all that stupid.

Barcelona mayor Ada Colau has called for Rajoy to resign, but she knows as well as anyone that that will not be enough, and it won’t change a thing. Rajoy is merely one representative of a fascist system that is the underbelly of Spain, waiting for its opportunity to raise its ugly head. It’s found that opportunity today, and the whole world is silent. Well, the ‘leaders’ are.

 

And while we’re talking disaster, I can’t help myself from briefly addressing Puerto Rico. The anti-Trump echo chamber is louder than ever, and it’s getting absurd. I can’t see what part of it is Trump’s doing, and what is due to other sources, but it simply seems not true that help is not moving forward. In a destruction as complete as Puerto Rico, there are limits to what can be done in a limited amount of time.

All the criticism of Trump at some point becomes criticism of other people involved as well. The mayor of San Juan gets lauded as a hero in certain circles, but is she really? How about the US military, how about FEMA? They look to be doing a good job, and FEMA seems to have learned a lot from Katrina 12 years ago.

Again, I don’t know how much of that is Trump, but if I may be cynical, he’s smart enough to know how his response could or would be used against him, so he would be really thick if he let the situation get worse than it should be. Earlier today Cate Long, an expert on Puerto Rico due to its debt fiasco, and hence with a lot of contacts there, tweeted:

“Federal govt has leapfrogged Puerto Rico govt & made direct connection with 78 municipalities. Central to powerful supply chain & relief.”

While the Huffington Post, not exactly Trump cheerleaders, posted this:

US Military On Puerto Rico: “The Problem Is Distribution”

Speaking today exclusively and live from Puerto Rico, is Puerto Rican born and raised, Colonel Michael A. Valle (”Torch”), Commander, 101st Air and Space Operations Group, and Director of the Joint Air Component Coordination Element, 1st Air Force, responsible for Hurricane Maria relief efforts in the U.S. commonwealth with a population of more than 3 million.

Since the ‘apocalyptic’ Cat 4 storm tore into the spine of Puerto Rico on September 20, Col. Valle has been both duty and blood bound to help. Col. Valle is a firsthand witness of the U.S. Department of Defense (DoD) response supporting FEMA in Puerto Rico, and as a Puerto Rican himself with family members living in the devastation, his passion for the people is second to none. “It’s just not true,” Col. Valle says of the major disconnect today between the perception of a lack of response from Washington verses what is really going on on the ground.

[..] some truck drivers from outside the island have been brought in, and more are coming, however it’s not a fix-all. “We get more and more offers to help, but there is no where to stay, we can’t take any more bodies, there’s no where to put them.” Col. Valle says, adding that their “air mobility” is good, and reiterating that getting more supplies or manpower is not the issue. When asked three times what else Washington can do to help, or anyone for that matter, three times Col. Valle answered, “It’s going to take time.”

Maybe it’s time to exit your echo chamber?

 

 

May 192017
 
 May 19, 2017  Posted by at 9:43 am Finance Tagged with: , , , , , , , , , , ,  


Jean-Michel Basquiat Untitled 1982

 

Swedish Prosecutors Drop Julian Assange Rape Investigation (AP/R.)
Australia Economy Among ‘Walking Dead Of Household Debt’ – Steve Keen (NCA)
US Household Debt Hit Record in First Quarter (WSJ)
Why Government Surpluses Is A Terrible Idea – Steve Keen (Renegade)
How Can The Greeks Save More Money? A Monetary Parable. (Steve Keen)
Greek Parliament Approves More Austerity Measures Amid Protests (DW)
Trump Aims to Balance Budget With Deep Cuts, Bullish Growth Projections (WSJ)
Get Ready for Quantitative Tightening (Rickards)
ECB Tapering to Cause “Disorderly Restructuring” of Italian Debt, Return to Lira (DQ)
Russia-US Relations Have Become ‘Extremely Paranoid’ – Sberbank CEO (CNBC)
Western Democracy – As Represented By The US – Is Crumbling (Global Times)
Secret Plans To ‘Protect’ France In The Event Of Le Pen Victory Emerge (G.)
What Jeremy Corbyn Whispered In My Ear (Ind.)
Study Of Healthcare Quality In 195 Countries Names The Best And Worst (AFP)
50 Years Since Indigenous Australians First ‘Counted’, Little Has Changed (G.)

 

 

Time for legal action against Sweden and the prosecutors.

Swedish Prosecutors Drop Julian Assange Rape Investigation (AP/R.)

Swedish prosecutors said on Friday they would drop a preliminary investigation into an allegation of rape against WikiLeaks founder Julian Assange, bringing to an end a seven-year legal standoff. “Chief Prosecutor Marianne Ny has today decided to discontinue the preliminary investigation regarding suspected rape concerning Julian Assange,” the prosecutors office said in a statement. Assange, 45, has lived in the Ecuadorian Embassy in London since 2012, after taking refuge there to avoid extradition to Sweden over the allegation of rape, which he denies. He has refused to travel to Stockholm, saying he fears further extradition to the US over WikiLeaks’ release of 500,000 secret military files on the wars in Afghanistan and Iraq. In 2015 lawyers for Julian Assange have claimed victory after a Swedish prosecutor bowed to pressure from the courts and agreed to break the deadlock in the WikiLeaks founder’s case by interviewing him in London.

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“Stop making housing into an asset.” “Make housing a place for people to actually live.”

Australia Economy Among ‘Walking Dead Of Household Debt’ – Steve Keen (NCA)

Australia has become the “walking dead of debt” due for a financial reckoning that could shock the housing market “bubble” within months. That’s according to “anti-economist” Professor Steve Keen who defines Australia as a “zombie to be” given soaring personal debt that has created a government-induced property bubble ripe to burst. “Australia has simply delayed its day of reckoning,” he told news.com.au in reference to the global financial crisis that shocked many countries around the world from 2008 but left the lucky country relatively unscathed after a series of government interventions. The Kingston University Professor claims first homeowners grants rolled out by successive governments have artificially kept prices high creating a form of “instant prosperity” that politicians are loath to stop.

“The housing bubble makes the politicians look good because A, people are feeling wealthier, and B … people are borrowing money to spend,” he said. “Then the government runs a balanced budget and looks like it really knows what it’s doing” “It hasn’t got a f***ing clue frankly, because what’s actually happening is the reason it’s making that money is credit is expanding,” he said. “It’s the old classic story, you’re criticising a party because someone’s laced the punchbowl. You try to take the punchbowl away from the party you’re a very unpopular person but you need to because what’s actually happening is people are getting intoxicated with credit”. His latest book, Can We Avoid Another Financial Crisis? argues Australia, along with Belgium, China, Canada and South Korea, is a “zombie” economy sleepwalking into a crunch that could come between 2017 and 2020.

“Both [Australia and Canada] will suffer a serious economic slowdown in the next few years since the only way they can sustain their current growth rates is for debt to continue growing faster than GDP,” he writes. [..] For Prof Keen, the solution for governments to an overheated housing market is obvious: “Stop making housing into an asset.” “Make housing a place for people to actually live. So you go back to saying ‘what’s desirable is affordable houses’ and affordable means it doesn’t cost a first homebuyer more than three or four years’ income to get a property,” he said. As for those struggling to get on the ladder in the meantime? “The only thing you can do in the middle is say I’m just not going to join in, and if it happens on a collective level …. it’s game over for the bubble because the bubble only works if more people keep taking out more leverage.”

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Wait till house prices start falling.

US Household Debt Hit Record in First Quarter (WSJ)

The total debt held by American households reached a record in early 2017, exceeding its 2008 peak after years of retrenchment against a backdrop of financial crisis, recession and modest economic growth. Much has changed over the past 8.5 years. The economy is larger, lending standards are tighter and less debt is delinquent. Mortgages remain the largest form of household borrowing but have become a smaller share of total debt as consumers take on more automotive and student loans. “The debt and its borrowers look quite different today,” New York Fed economist Donghoon Lee said. He added: “This record debt level is neither a reason to celebrate nor a cause for alarm.” The total-debt milestone, announced Wednesday by the Federal Reserve Bank of New York, was a long time coming.

Americans reduced their debts during and after the 2007-09 recession to an unusual extent: a 12% decline from the peak in the third quarter of 2008 to the trough in the second quarter of 2013. New York Fed researchers, looking at data back to the end of World War II, described the drop as “an aberration from what had been a 63-year upward trend reflecting the depth, duration and aftermath of the Great Recession.” In the first quarter, total debt was up about 14% from that low point as steady job gains, falling unemployment and continued economic growth boosted households’ income and willingness to borrow. The New York Fed report said total household debt rose by $149 billion in the first three months of 2017 compared with the prior quarter to a total of $12.725 trillion.

The pace of new lending slowed from the strong fourth quarter. Mortgage balances rose from the final three months of 2016, while home-equity lines of credit were down. Automotive loans rose, as did student loans, but credit-card debt fell along with other types of debt. The data weren’t adjusted for inflation, and household debt remains below past levels in relation to the size of the overall U.S. economy. In the first quarter, total debt was about 67% of nominal gross domestic product versus roughly 85% of GDP in the third quarter of 2008. Balance sheets look different now, with less housing-related debt and more student and auto loans. As of the first quarter, about 68% of total household debt was in the form of mortgages; in the third quarter of 2008, mortgages were roughly 73% of total debt. Student loans rose from about 5% to around 11% of total indebtedness, and auto loans went from roughly 6% to about 9%.

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Can we finally try to understand this, all of us?

Why Government Surpluses Is A Terrible Idea – Steve Keen (Renegade)

In this Renegade Short, Professor Steve Keen explains why the government isn’t supposed to balance its accounts like a household.

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TomDickHaria.

How Can The Greeks Save More Money? A Monetary Parable. (Steve Keen)

The EU’s “Stability and Growth Pact” has as one of its primary rules that “The Member States undertake to abide by the medium-term budgetary objective of positions close to balance or in surplus…” I explore what this objective implies in the context of a model of the economy of “TomDickHaria”: what happens to its collective GDP where one member tries to achieve the surplus goal set out in the “Stability and Growth Pact?

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The Troika makes sure Greece will keep drowning.

Greek Parliament Approves More Austerity Measures Amid Protests (DW)

All 153 lawmakers in Prime Minister Alexis Tsipras’ governing coalition backed the legislation that includes new pension cuts and lower tax breaks, which are expected to save Greece €4.9 billion ($5.4 billion) until 2021. All opposition lawmakers present in the 300-seat chamber rejected the package required by international lenders before the release of more aid. Athens needs the bailout funds to repay €7.5 billion of debt maturing in July this year. Relief measures will only kick in if Greece meets fiscal targets stipulated by its creditors. “Our country is being turned into an austerity colony,” leading opposition conservative Kyriakos Mitsotakis said during debate on the bill, describing added cuts as a “nightmare” for low-earners.

Tsipras countered that its passage would enable Greece from summer next year to stand on its own feet, without the intervention of creditors such as the IMF. He accused the opposition of constantly warning of a catastrophe that “hasn’t come.” Government spokesman Dimitris Tzanakopoulos told Skai TV that Greek creditors the IMF and Germany were “in the final stretch of very tough negotiations” over a compromise that should allow Greece to return to bond markets in 2018. Thursday’s austerity package lowers the income tax exception from €8,600 down to about €5,700 but increases benefits for low-income tenants, parents with children and subsidies for child care. Public stakes are to be reduced through sales of holdings in Greece’s PPC electricity utility, railways, Athens’ international airport and the Thessaloniki port.

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Same as it ever was. Fantasy numbers have ruled the day for many years.

Trump Aims to Balance Budget With Deep Cuts, Bullish Growth Projections (WSJ)

President Donald Trump next week will propose the U.S. can balance the federal budget over 10 years with substantial cuts to safety-net programs such as food stamps and other anti-poverty efforts, combined with a tax and regulatory overhaul that speeds up the nation’s economic growth rate, a senior White House budget official said. The president’s budget, due for release Tuesday, will spare the two largest drivers of future spending—Medicare and Social Security—leaving trillions in cuts from other programs. That includes discretionary spending cuts to education, housing, environment programs and foreign aid already laid out by the administration, in addition to new proposed reductions to nondiscretionary spending like food stamps, Medicaid and federal employee-benefit programs.

The budget release, which will be unveiled while Mr. Trump is visiting Europe and the Middle East, shows how his economic policy team is trying to forge ahead on his agenda even as distracting political controversies, such as the recent firing of FBI director James Comey, swirl around Washington. On Thursday, Treasury Secretary Steven Mnuchin testified on Capitol Hill, his first such appearance since his February confirmation, where he expressed confidence Congress could advance a revamp of the tax code this year. House Republicans held their first hearing on the proposed tax overhaul, following a series of meetings between lawmakers and top administration officials Wednesday.

The White House’s budget proposal next week builds upon an earlier outline in March that called for a nearly 10% boost in defense funding next year, offset by around $54 billion in cuts for nondefense programs. [..] Among the more controversial elements of the budget will be the administration’s growth forecasts. The White House projects the nation’s economic growth rate will rise to 3% by 2021, compared with the 1.9% forecast under current policy by the Congressional Budget Office. It’s unusual to see the White House’s growth forecasts differ from the CBO and other blue-chip projections by such a large margin over such a long stretch of the 10-year budget window.

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Another crazy experiment by the Fed bookworms.

Get Ready for Quantitative Tightening (Rickards)

Despite yesterday’s market sell-off, the Fed is still on track to raise interest rates in June. Wednesday’s action is no more than a speed bump for the Fed. It will not stop the Fed from moving forward with another 0.25% rate increase. The Fed is embarking on a new path, a path that started several years with QE (quantitative easing). QE is the name for the method the Fed uses to ease monetary conditions when interest rates are already zero. Conventional monetary policy calls for interest rate cuts to stimulate growth and inflate asset prices when the economy is in a recession. What does a central bank do when interest rates are already at zero and you can’t cut them anymore? One solution is negative interest rates, although the evidence from Japan and Europe indicates that negative rates do not have the same effect as rate cuts from positive levels. The second solution is to print money! The Fed does this by buying bonds from the big banks.

The banks deliver the bonds to the Fed, and the Fed pays for them with money from thin air. The popular name for this is quantitative easing, or QE, although the Fed’s technical name is long-term asset purchases. The Fed did QE in three rounds from 2008 to 2013. They gradually tapered new purchases down to zero by 2014. Since then, the Fed has been stuck with $4.5 trillion of bonds that it bought with the printed money. When the bonds mature, the Fed buys new ones to maintain the size of its balance sheet. But now the Fed wants to “normalize” its balance sheet and get back down to about $2 trillion. They could just sell the bonds, but that would destroy the bond market. Instead, the Fed will let the old bonds mature, and not buy new ones. That way the money just disappears and the balance sheet shrinks. The new name for this is “quantitative tightening,” or QT. You’ll be hearing a lot about QT in the months ahead.

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Tapering, QT, it’s all just more ‘uncharted territory’.

ECB Tapering to Cause “Disorderly Restructuring” of Italian Debt, Return to Lira (DQ)

Here’s the staggering scale of the Italian government’s dependence on the ECB’s bond purchases, according to a new report by Astellon Capital: Since 2008, 88% of government debt net issuance has been acquired by the ECB and Italian Banks. At current government debt net issuance rates and announced QE levels, the ECB will have been responsible for financing 100% of Italy’s deficits from 2014 to 2019. But now there’s a snag. Last month, the size of the balance sheet of the ECB surpassed that of any other central bank: At €4.17 trillion, the ECB’s assets have soared to 38.8% of Eurozone GDP. The ECB has already reduced the rate of purchases to €60 billion a month. And it plans to further withdraw from the super-expansionary monetary policy. To do this, according to Der Spiegel, it wants to spread more optimistic messages about the economic situation and gradually reduce borrowing.

[..] By the halfway point of 2018 the ECB would have completed tapering and it would then use the second half of the year to move away from negative interest rates. So far, most current ECB members have shown scant enthusiasm for withdrawing the punch bowl. The reason most frequently cited for not tapering more just yet is their lingering concern about the long-term sustainability of the Eurozone’s recent economic turnaround. The ECB’s binge-buying of sovereign and corporate bonds has spawned a mass culture of financial dependence across Europe, while merely serving to paper over the cracks that began forming — or at least became visible — in some Eurozone economies during the sovereign debt crisis. In many places the cracks are even bigger than they were back then. This is the elephant in the ECB’s room, and by now it’s too big to ignore.

In one country alone, the cracks are so large that they could end up fracturing the entire single currency project. That country is Italy. Astellon Capital’s report on Italy’s dependence on ECB bond purchases poses the question: If the ECB tapers its purchase of Italian bonds further, who would pick up the slack? The Italian banks, which are themselves deep in crisis mode and whose balance sheets are already filled to the gills with Italian bonds? Hardly. When QE ends, the banks are more likely to become net sellers, rather than net buyers, of Italian debt. The only way for the game to continue is if over the next six years non-banks increase their purchase activity up to seven times that of the past nine years. In other words, the very same investors who have used QE as the perfect opportunity to offload the immense risk of holding Italian liabilities onto the Bank of Italy’s, and then onto the Eurosystem’s, would need to step back into the market in a massive way, just at a time that the country in question is on the verge of a full-blown banking crisis.

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No kidding.

Russia-US Relations Have Become ‘Extremely Paranoid’ – Sberbank CEO (CNBC)

Diplomatic relations between America and Russia have deteriorated to such an extent that contacts between the two countries have become extremely paranoid of one another, the chief executive of Russia’s largest bank has told CNBC. “From what we see here in Russia and from the programs we see from the U.S., the unfolding situation is fairly complex. And there are certain signs of a certain… paranoid attitude to Russia and to every single contact with Russia real or imagined,” Herman Gref, Sberbank CEO, said via a translator. [..] When asked whether Gref harbored any concerns about the consequences of having met with Trump in the past, he replied, “I think the situation has become extremely paranoid for one to suspect that these sort of contacts could lead to political consequences.”

Speaking in January at the World Economic Forum in Davos, Sberbank’s CEO had predicted the Trump administration could re-establish close ties with the Kremlin and expressed his hope the newly-elected U.S. president could mark a “new beginning” for the two countries. On Friday, Gref suggested it was still too early to judge the success of Trump’s presidency however conceded that, for the time-being at least, relations between American and Russia were unlikely to change for the better. Moscow is currently enduring the sharp end of tough international sanctions from Washington[..] . “Well, I have to say that this has had an effect on us in the last two years… The inability to access international markets is painful for us,” Gref said. “You know, sanctions were put in place for political reasons and most likely their removal will also be motivated by politics…

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China’s official government paper.

Western Democracy – As Represented By The US – Is Crumbling (Global Times)

The American elite still refuse to accept Trump after his 100 days in the Oval Office. He is at odds with the mainstream media; insiders have constantly leaked information to the media. Now some commentators have compared the exposure of the Comey memo to the Watergate scandal. As Congress is under Republican control, few believe there will be a move to impeach the president, but these latest revelations will certainly further erode Trump’s presidential authority. At the beginning of the corruption scandal, few believed that South Korean president Park Geun-hye would be impeached either. Could this be a reference for Trump’s case? But evidence of Park’s illegal activities was solid, while it will be more complicated to make determinations over whether Trump obstructed justice and leaked classified intelligence.

To impeach Trump will need more evidence from further investigation. To completely discredit Trump among voters, the present scandal is not enough as it does not add to the negative image of Trump. Many just think Trump often speaks off the cuff, which ends up in silly blunders. If there is a major substantive scandal over and above him speaking out of turn then that will be another thing. But this is not the case at the moment. Every country has its own troubles. The US model represents Western democracy, but it is crumbling, and the resulting social division has become more and more serious. The US Deputy Attorney General Rod J. Rosenstein appointed a special counsel to oversee the investigation into link between Russia and the 2016 US presidential election and related matters on Wednesday.

More juicy details will continue to appear and the rifts may become wider. Trump will become one of the most frequently accused Americans. The US won’t be engulfed by chaos if its president is caught in a lawsuit. Someone has pointed out that no matter how chaotic the White House and Capitol Hill are, the overall operation of the US will not be a major problem as long as the enterprises and social organizations in the country are stable. This is seen as an advantage of the American system. Although American society is relatively stable, the political tumult can’t be taken as an advantage of the US system. The fact is that US politics is in trouble, and the benefits brought by its system are being squandered.

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Democracy as a threat to the state.

Secret Plans To ‘Protect’ France In The Event Of Le Pen Victory Emerge (G.)

It was never written down and never given a name, but France had a detailed plan to “protect the Republic” if far right leader Marine Le Pen was elected president, French media have reported. “It was like a multi-stage rocket,” an unnamed senior official told l’Obs magazine. “The philosophy, and the absolute imperative, was to keep the peace, while also respecting our constitutional rules.” [..] L’Obs cited three anonymous sources with knowledge of the emergency plan that would have been put into effect had Le Pen reached the Elysée palace, saying it was devised by a small group of ministers, chiefs of staff and top civil servants. The magazine said the plan was aimed mainly at preventing serious civil unrest and “freezing” the political situation by convening parliament in emergency session and maintaining the outgoing prime minister in office.

Police and intelligence services were particularly concerned by the threat of “extreme violence” from mainly far left protesters in the event of a Le Pen victory as the country would have found itself “on the brink of chaos”. Even before the first round of voting on 23 April, a confidential note drawn up by the intelligence services announced that “without exception, every local public safety directorate has expressed its concern”, Le Parisien reported. Regional police chiefs were asked on 21 April to detail their crowd control and deployment plans, l’Obs said. Under France’s ongoing state of emergency, more than 50,000 police and gendarmes and 7,000 soldiers were already on duty. On 5 May, two days before the second round that Macron won by 66% to Le Pen’s 34%, the national public safety directorate warned in another note that protesters were ready to use “fireworks, mortars and incendiary bombs”.

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“If you do what you believe in, you’re strong. It’s when you don’t do what you believe in that you’re weak. And we are strong.”

What Jeremy Corbyn Whispered In My Ear (Ind.)

When I shook his hand, I told him that I work for a charity and freelance as a journalist, writing on politics and social justice issues. I expressed my disappointment that Labour (and particularly Corbyn himself) doesn’t get a fair hearing from many news outlets. He spoke in my ear: “If you do what you believe in, you’re strong. It’s when you don’t do what you believe in that you’re weak. And we are strong.” The unveiling of Labour’s manifesto today was a display of strength. Labour is promising a Britain that works for everyone, where whole swathes of society aren’t left behind. The transformative manifesto will take the financial burden from the shoulders of those who can least afford to carry it, and place it upon the top 5% of earners and arrogantly tax-dodging corporations.

The Britain we currently live in is untenable for young people, university students, teachers, NHS workers, policemen, the disabled, people with long-term illnesses, people who can’t find work, first-time buyers, and those living in rented accommodation. Britain is working for a wealthy few, and Labour’s manifesto highlights the fact, often forgotten, that this is not inevitable. At Bradford University, a huge cheer went up when Corbyn promised to scrap tuition fees and end hospital parking charges. The scandal of zero hours contracts would be a thing of the past under Labour, as will NHS cuts and rises in VAT and income tax for 95% of earners. The manifesto is a document filled with long-overdue, common sense policies.

It addresses the important questions that accompany the Brexit process, including concerns about the protection of jobs and hard-won workers’ rights. It puts children and young people first, promising to invest in them through a National Education Service rather than rely on the failed academies experiment or a ridiculous and divisive reintroduction of grammar schools. In-work poverty is unacceptable. My partner and I both work two jobs and we struggle to make ends meet. We don’t indulge in avocado toast but finding enough for a deposit on a mortgage is sadly out of reach. The pledge to build one million new homes and introduce a £10 living wage by 2020 is crucial for young couples and for anyone working in poorly paid or part-time jobs, notably in care work and service industry roles. If Labour’s manifesto and the promise of more public ownership will transport us to the 1970s, where do we currently live? 1870, perhaps?

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Single payer rules. Supreme.

Study Of Healthcare Quality In 195 Countries Names The Best And Worst (AFP)

Neither Canada nor Japan cracked the top 10, and the United States finished a dismal 35th, according to a much anticipated ranking of healthcare quality in 195 countries, released Friday. Among nations with more than a million souls, top honours for 2015 went to Switzerland, followed by Sweden and Norway, though the healthcare gold standard remains tiny Andorra, a postage stamp of a country nestled between Spain (No. 8) and France (No. 15). Iceland (No. 2), Australia (No. 6), Finland (No. 7), the Netherlands (No. 9) and financial and banking centre Luxembourg rounded out the first 10 finishers, according to a comprehensive study published in the medical journal The Lancet.

Of the 20 countries heading up the list, all but Australia and Japan (No. 11) are in western Europe, where virtually every nation boasts some form of universal health coverage. The United States – where a Republican Congress wants to peel back reforms that gave millions of people access to health insurance for the first time – ranked below Britain, which placed 30th. The Healthcare Access and Quality Index, based on death rates for 32 diseases that can be avoided or effectively treated with proper medical care, also tracked progress in each nation compared to the benchmark year of 1990.

Virtually all countries improved over that period, but many – especially in Africa and Oceania – fell further behind others in providing basic care for their citizens. With the exceptions of Afghanistan, Haiti and Yemen, the 30 countries at the bottom of the ranking were all in sub-Saharan Africa, with the Central African Republic suffering the worst standards of all. “Despite improvements in healthcare quality and access over 25 years, inequality between the best and worst performing countries has grown,” said Christopher Murray, director of the Institute for Health Metrics and Evaluation at the University of Washington, and leader of a consortium of hundreds of contributing experts.

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“Dogs and cats and pigs and sheep were counted in Australia before Aboriginal people”

50 Years Since Indigenous Australians First ‘Counted’, Little Has Changed (G.)

Sol Bellear, a former rugby league player for South Sydney Rabbitohs and Aboriginal rights activist, sits in the soft autumn sunshine at a cafe intersecting Redfern Park and the oval that remains the spiritual home of his beloved club. He sips a Red Bull “heart starter” and English breakfast tea. And he shakes his head while contemplating the anniversaries of what ought to have been transformative moments for Aboriginal and Torres Strait Islander people – starting with the 1967 “citizenship” referendum that first made their existence in Australia “official”. “Things should be so much better for Aboriginal people. I think the country saw 1967 as the end of the fight,” Bellear says.

“Before 1967, we weren’t counted in the census or anything as people. Dogs and cats and pigs and sheep were counted in Australia before Aboriginal people.” Indigenous people had never previously been officially included among the Australian citizenry, nor counted in the Commonwealth census – so the federal government could not legislate for them. But on 27 May 1967, more than 90% of the Australian electorate voted at the “citizenship” referendum to effectively bring Indigenous people into the Commonwealth. “After the referendum, though, it was like the work was done for the rest of the country and governments – when it was actually just the bloody beginning,” Bellear says. “Every little thing we’ve won since, we’ve had to fight for.”

2017 is also the 25th anniversary of two more critical moments in the story: the Mabo decision – a High Court ruling that led to native title land rights, and former prime minister Paul Keating’s landmark “Redfern speech” (“We committed the murders – we took the children from their mothers”). It was Bellear who introduced Keating at Redfern Park. This was the first time an Australian prime minister had frankly, without qualification, acknowledged the violence, sickness, dispossession and ongoing oppression that colonialism had imposed on Indigenous people. Yet a quarter of a century on, Bellear says his country remains deaf to all the non-government reports into Indigenous lives – and to the savage critiques of Commonwealth policies that purported to make them better.

[..] Aboriginal and Torres Strait Islanders constitute some 3% of the country’s overall population – yet in 1991, they comprised 14% of Australia’s prisoners. A quarter of a century later, that figure was up to 27% – while more than 150 Indigenous people had died in custody in the intervening 25 years. In some parts of Australia, many more young Indigenous men complete prison terms than high school. The Indigenous rate of imprisonment is 15 times the age-standardised non-Indigenous rate. As Thalia Anthony pointed out in her 2015 book Indigenous People, Crime and Punishment, rates of Indigenous incarceration in Australia today match those of black imprisonment in apartheid South Africa.

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Mar 312017
 
 March 31, 2017  Posted by at 7:23 pm Finance Tagged with: , , , , , , , ,  


Ray K. Metzker Europe 1961

 

The true face of the EU is presently on display in Greece, not in Germany or Holland or France. Brussels must first fix what’s going wrong in Athens and the Aegean, and there’s a lot going wrong, before it can move on towards the future, indeed towards any future at all. It has a very tough job in Italy as well, which it’s trying hard to ignore.

You can’t say ‘things are fine in Germany’ or ‘Finland is recovering’ and leave it at that. Not when you’re part of a political -and to a large degree also economic- Union, let alone when you’re preaching tightening -and deepening- that Union. Not when parts of that Union are not only doing much worse than others, but are being thoroughly gutted. Then again, they’re being gutted by the very Union itself, so Brussels -and Berlin, The Hague, Paris- can’t very well feign surprise or deny responsibility.

Of course the European continent needs a ‘body’, some form of organization -and it needs it badly- that will allow its nations to cooperate, in 1000 different ways and fields, but the EU is not it. The EU is toxic. It is turning nations against each other as we speak. So much so that it’s crucial for these nations to leave the union and dismantle the entire operation before that happens, because there will be no opportunity left to do it once the toxicity takes over. The UK should count itself lucky for getting out while it did.

 

In its present setting, the EU has no future. And, more importantly, there is no mechanism available to change that setting. It should have been insisted on when the Union was founded, or in one of its various treaties after. This never happened, though, and that’s no coincidence, it was always about power. It’s therefore very hard -if not impossible- to see how the EU could be altered in such a way that it has a chance of survival.

Changing or tweaking a few rules is not going to do it. It’s the very Brussels power structure that is inherently faulty, and those parties that under this structure have the power, are the same ones who would have to change it (against their own interests). There is not a single decision concerning important -for instance economic- EU policies that can be taken against the wishes of Berlin. And Berlin demands what’s good for Germany, even if that is bad for other member states.

In order to save the EU, German representatives would have to vote against their own national interests. But they were elected specifically to protect those interests. There is no better way to illustrate the fatal flaw in the -construction of- the EU. Politicians are elected to protect the interests of their member states, and no member state can possibly prevail but Germany, because it’s the biggest. You can put any label you want on that, but democratic it’s not.

 

Germany and Holland are doing great, according to the most recent economic data. But how is that a reason to celebrate when Greece and Italy, among others, are not doing great at all? Why the difference? It’s not because they spend their money on “Schnaps und Frauen” as Eurogroup president and Dutch demissionary FinMin Dijsselbloem so poetically suggested.

It’s because the Eurogroup has not acted in their best interests. Because when their interests differed from the Dutch and German ones, the latter won out. Easily. And they always will under the present terms. As head of the Eurogroup, Dijsselbloem should represent the best interests of all member nations, not just Holland and Germany.

So should Angela Merkel as the de facto head of the EU. And it’s a very simple fact, easy to explain as well, that these interests can conflict. Obviously, that Merkel can call all the important shots in the EU should be a red, flashing, blinding and deafening alarm sign to start with. Germany should have taken a step back, back in 1960 or so, or even 1999, but for obvious reasons didn’t, and got away with that. It’s about power, it was never about Union other than to increase Power.

European politicians have not been able to make the ‘shift’ from nation to Union. Once they are faced with decisions that may harm their national interests, but benefit those of the EU as a whole, they must revert back, by default, to their own respective nationalistic priorities. Even if they are the ones who complain loudest about rising nationalism and protectionism.

And they’re -kind of- right, or justifiable. German, French, Dutch politicians are not accountable to Slovakian or Slovenian interests. That’s just extra, nice if it happens to coincide with what Berlin or Paris want, but not a priority in any sense of the word. Understandable, but lethal to the idea of a Union.

 

 

There is your fatal EU flaw. The whole common interest idea is just a sales pitch, always was. Which worked fine in times of growth. But take a look now. There’s nothing left. The rich north has used the poorer south to transfer its losses to. It’s not a union, it’s old-fashioned colonialism.

Europe’s political problem can perhaps best be expressed by comparing it to the US. Germany, plus to a lesser extent Holland, and France, have so much power that it would be like California and New York could call all important shots in America. But they can’t. Trump’s election shows that they cannot. Europe doesn’t even have that escape valve.

Delving a bit deeper, Kansas and California may be different cultures, but their people speak the same language, they watch the same TV shows, read the same news. Different cultures, but also part of the same culture. In Europe, most people have no idea who EU head Juncker is, or care, or how he got where he’s at.

Most likely know who Angela Merkel is, but they don’t know that she takes all the important decisions about their lives now. If they did, the pitchforks would be out in minutes. Luckily for Merkel, the EU is as opaque as can be,

90% of Europeans need subtitles to understand Juncker and Merkel. Or for some journalist to translate for them. Everyone in Kansas and California understands what Trump says, no matter how confused he may sound or what they may think of him. He’s American, and so are they. He’s one of them.

Needing subtitles to understand Juncker and Merkel may work in times of plenty. But in lean years, people don’t take kindly to that kind of thing, that someone you can’t even understand, and that you can’t hold to account, makes important decisions that impact you directly, as you see your jobs and savings and homes vanish and the future of your kids disappear.

That is asking for trouble. The EU has that trouble, and it will have much more of it. The only way out of that trouble is for the Union to dismantle itself. But as we can see in the whole Brexit story, that would involve so many interested parties giving up on so many perks that feed them, politicians, businesses, what have you, that none of it would ever happen voluntarily.

The EU has become a farcically intricate web of policies and laws and regulations, all built on fatally flawed foundations, that no citizen of sound mind feels connected with. The only way out of that is to literally get out. The UK got it right, whether they meant it or not.

The EU cannot be reformed because the only people -and the countries they represent- who could do the reforming, profit hugely from the present state of affairs, from not reforming. Fatal. Flaw.

As any builder can tell you who’s ever seen a structure on the verge of collapse: some can be saved and some of them you just have to let go. Raze ’em and start from scratch. Which in many cases, as builders know, is simply the best choice.

Please don’t get me wrong: of course there are tons of things the EU has done that are great, and right, and all that. But it’s the power structure that will inevitably kill it no matter what else it does that actually works. And that structure is beyond redemption.

 

 

Oct 072016
 
 October 7, 2016  Posted by at 6:34 pm Finance Tagged with: , , , , , , , , , ,  


Andre Kertesz Bumper cars at amusement park in Neuilly-sur-Seine, near Paris 1930

I read a lot, been doing it for years, about finance and affiliated topics (a wide horizon of them), which means I’ve inevitably seen a wholesale lot of nonsense fly by. But for some reason, and I think I know why, Q3 2016 has been gunning for a top -or bottom- seat in that regard, and Q4 is looking to do it one better/worse.

Apart from the fast increasingly brainless political ‘discussions’ that don’t deserve the name, in the US and UK and beyond, there are the transnational organizations, NATO, IMF, EU and all those things, all suffocating in their own hubris, things I’ve dealt with before in for instance Globalization Is Dead, But The Idea Is Not and Why There is Trump. But none of it still seems to have trickled through anywhere that I can see.

The end of growth exposes the stupidity and ignorance of all but (and even that’s a maybe) a precious few (of our) ‘leaders’. There is no other way this could have run, because an era of growth simply selects for different people to float to the top of the pond than a period of contraction does. Can we agree on that?

‘Growth leaders’ only have to seduce voters into believing that they can keep growth going, and create more of it (though in reality they have no control over it at all). Anyone can do that. So ‘anyone’ who’s sufficiently hooked on power games will apply.

‘Contraction leaders’ have a much harder time; they must convince voters that they can minimize the ‘suffering of the herd’. Which is invariably a herd that no-one wants to belong to. A tough sell.

Any end to growth will and must therefore inevitably change the structure of a democracy, any democracy, any society for that matter. It will lead to new leaders, and new parties, coming to the front. And it should not surprise anyone that some of these new leaders and parties will question the very structure of the democracy they are part of, if only because that structure is already undergoing change anyway.

The tight connection between an era of economic growth (and/or contraction) and the politicians that ‘rule’ during that era is reflected in Hazel Henderson’s“economics is nothing but politics in disguise”.

 

On the one hand you have the incumbent class seeking to hold on to their waning power, churning out false positive numbers and claiming that theirs is the only way to go (just more of it), and on the other hand you have a loose affiliation – to the extent there’s any affiliation at all- of left and right, individuals and parties, who smell change that they can use to their own benefit.

They just mostly don’t know how to use it yet. But they’ll find out, or some of them will. Blaming people and groups of people for what’s gone wrong will be a major way forward, because it’s just so easy. It’s another reason why the incumbents class, the traditional parties, will go the way of the dodo: they will be blamed, and rightly so in most cases, for the fall of the economic system.

That’ll be the number one criteria: if you’re -perceived as- part of the old guard, you’re out. Not at the flick of a switch, but nevertheless the rise of Trump and Farage and all those folks has been much faster than just about anyone would have thought possible until very recently.

They feed on discontent, but they can do so only because that discontent has been completely ignored by the ruling classes everywhere. Which has a lot to do with the rulers in all these instances we see pop up now still being well-off, while the lower rungs of societies definitely are not.

Moreover, if most people still had comfortable middle-class lives, the dislike of immigrants and refugees would have been so much less that Trump and Wilders and Le Pen and Alternative for Deutschland could never have ‘struck gold’. It’s the perception that the ‘new’ people are somehow to blame for one’s deteriorating living conditions that makes it fertile ground for whoever wants to use it.

And since the far left can’t go there, the right takes over by default. Bernie Sanders and Jeremy Corbyn have brave ideas on redistribution of wealth, but there is still too much resistance, at the moment, to that, from the incumbent class and their voters, to have much chance of getting anywhere.

Of course the traditional right wing smells the opportunity too, so Hillary (yeah, she’s right wing) and Theresa May and Sarkozy and Merkel are all orchestrating sharp turns to the right, away from their once comfortable seats in the center. They all sense that power will not be emanating from the center going forward, and it’s power, much more than principles, that they are after.

 

But enough about politicians and their parties, who can and will all be voted out of power. Much harder to get rid of will be the transnational organizations, like the EU and IMF (there are many more), though they represent the ‘doomed construction’ perhaps even more than mere local or national power-hungries. The leading principle is simple: What has all the centralization led to? To today’s contracting economies.

To that end, let’s just tear into a recent random Bloomberg piece on this week’s IMF meeting, and the ‘expert opinions’ on it:

Existential Threat To World Order Confronts Elite At IMF Meeting

Policy-making elites converge on Washington this week for meetings that epitomize a faith in globalization that’s at odds with the growing backlash against the inequities it creates. From Britain’s vote to leave the EU to Donald Trump’s championing of “America First,” pressures are mounting to roll back the economic integration that has been a hallmark of gatherings of the IMF and World Bank for more than 70 years. Fed by stagnant wages and diminishing job security, the populist uprising threatens to depress a world economy that IMF Managing Director Christine Lagarde says is already “weak and fragile.”

The calls for less integration and more trade barriers also pose risks for elevated financial markets that remain susceptible to sudden swings in investor sentiment , as underscored by recent jitters over Deutsche Bank’s financial health. “The backlash against globalization is manifesting itself in increased nationalistic sentiment, against the outside world and in favor of increasing isolation,” said Louis Kuijs at Oxford Economics in Hong Kong, a former IMF official. “If we lose consensus on what kind of a world we want to have, the world will probably be worse off.”

Oh, but we do have consensus, Louis: Ever more people don’t want what they have now. That too is consensus. And since you said that what it takes is consensus, we should be fine then, right?!

Also, I find the term ‘elevated markets’ interesting, even if I don’t know what it’s supposed to mean. I can only guess.

In its latest World Economic Outlook released Tuesday, the fund highlighted the threats from the anti-trade movement to an already subdued global expansion. After growth of 3.2% in 2015, the world economy’s expansion will slow to 3.1% this year before rebounding to 3.4% in 2017, according to the report, keeping those estimates unchanged from July projections. The forecasts for U.S. growth were cut to 1.6% this year and 2.2% in 2017.

“We’d like to see an end to the creeping protectionism in the world and more progress on moving ahead with free-trade agreements and other trade-creating measures,” Maurice Obstfeld, director of the IMF’s research department, said in a Bloomberg Television interview with Tom Keene. Lagarde said last week that policy makers attending the Oct. 7-9 annual meeting of the IMF and World Bank have two tasks. First, do no harm, which above all means resisting the temptation to throw up protectionist barriers to trade. And second, take action to boost lackluster global growth and make it more inclusive.

I can see how a vote against the likes of Hollande, Hillary or Cameron constitutes a “the backlash against globalization”. What I don’t see is how that has now become the same as the anti-trade movement. When did Trump express any feelings against trade? Against international trade deals as they exist and are further prepared, yes.

But those deals don’t define ‘trade’ to the exclusion of all other definitions. As for ‘protectionism’, that’s just a term designed to make something perfectly fine and normal look bad. Every single society on the planet should protect its basic necessities from being controlled by foreigners, either for money or for power.

Nothing good can come of relinquishing that control for any society, ever. There‘s not a thing wrong with protecting your control of your own water and food and shelter, and these are indeed things that should never be traded or negotiated in global markets.

So claiming that ‘do no harm’ equals NOT protecting your basics is nothing but a self-serving and dangerous kind of baloney coming your way courtesy of those people whose sociopathic plush seats and plusher bank accounts depend on your ongoing personal loss of control over what you need to survive.

It’s what any ‘body’ does that has reached the limits of its growth: it starts feeding on its host. Be it a cancerous tumor, the Roman Empire or our present perennial-growth driven economic models, they’re all the same same thing because they are fueled by the same -thoughtless- principle.


Ilargi: See that upward line at the end? Well, it’s an IMF growth ‘forecast’. Which are always so wrong, and always revised downward, that you must wonder if the term ‘forecast’ is even appropriate

 

Achieving even those modest objectives may prove elusive. Free trade has become polling poison in the U.S. presidential campaign, with Democratic nominee Hillary Clinton now criticizing a trade deal with Pacific nations, which isn’t yet ratified in the U.S., that she had praised when it was being negotiated. Republican challenger Trump has lashed out at Mexico and China, threatening to slap big tariffs on imports from both nations. Rattled by the U.K.’s June vote to leave the EU, European leaders know it may just be the start of a political earthquake that’s threatening the continent’s old certainties.

In case you didn’t catch it, “..the continent’s old certainties” is a goal-seeked term. Old in this case means not older than, say, 1950, if that. Look back 100 years and “the continent’s old certainties” dress in a whole other meaning.

Next year sees elections in Germany and France, the euro area’s two largest economies, and in the Netherlands. In all three countries anti-establishment forces are gaining ground. With growing resentment of the EU from Budapest to Madrid, policy makers have described the current surge in populism as the greatest threat to the bloc since its creation out of the ashes of World War II. There are also growing signs that the union and Britain are heading for a so-called “hard exit” that would sharply reduce the bloc’s trade and financial ties with the island nation. U.K. Prime Minister Theresa May said on Oct. 2 that she’ll begin her country’s withdrawal from the EU in the first quarter of next year.

I have addressed the misleading use of the term ‘populism’ before. In its core, it simple means something like: for, and by, the people. How that can be presented as somehow being a threat to democracy is a mystery to me. They should have picked another term, but settled on this one.

And in the western media consensus, it comprises anything from Trump to Beppe Grillo, via Hungary’s Orban and Nigel Farage, Spain’s Podemos, Greece’s Syriza and Germany’s AfD. All these completely different movements have one thing only in common: they protest the failed and fast deteriorating status quo, and receive a lot of support from their people for doing that.

Because it’s the people that bear the brunt of the failure, not the leadership; even Greece’s politicians still pay themselves a comparatively lush salary.

As for Britain, it’s the textbook example of utter blindness. Those who were/are well provided for, be they politically left or right, missed out on what was happening around them so much they had no idea Brexit was a real option. And in the 15 weeks since the Brexit vote, all anyone has done in the UK is seeking to blame someone, anyone but themselves for what they all failed to see coming.

Perhaps the biggest beneficiary of free trade over the past generation, China, still restricts access to many of its key industries, with economists worried about increasingly mercantilist policies. It’s also seeking a larger role in the existing global framework, with entry of the yuan into the IMF’s basket of reserve currencies on Oct. 1 the most recent example. An all-out trade war would be a disaster for China’s economy, with Trump’s threatened tariff potentially wiping off almost 5% of its GDP, according to a calculation by Daiwa Capital Markets.

John Williamson, whose Washington Consensus of open trade and deregulation was effectively the governing ethos for the IMF and World Bank for decades, said the 2008-09 financial meltdown had undercut support for economic integration. “There was agreement on globalization before the crisis and that’s one thing that’s been lost since the financial crisis,” said Williamson, a former senior fellow at Peterson Institute for International Economics who is now retired.

The growing opposition to economic integration has been fueled by a sub-par global recovery. “Perhaps the most striking macroeconomic fact about advanced economies today is how anemic demand remains in the face of zero interest rates,” former IMF chief economist Olivier Blanchard wrote last week in a policy brief for the Peterson Institute.

These ‘experts’ seem to have an idea there’s something amiss, but they don’t have the answers. Which is impossible to come and say out loud if you’re an expert. Experts must pretend to know it all, or at least know why they don’t know. “There was agreement on globalization before the crisis”, and now it’s no longer there. That they see.

That they ain’t coming back, neither the agreement on it nor globalization itself, is a step too far for them. To publicly acknowledge, at least. That Blanchard expresses surprise about ‘anemic demand’ at the same time that interest rates are equally anemic is something else.

That both are two sides of the same coin, or at least may be, is something he should at least mention. That is to say, low rates induce deflation, though they are allegedly supposed to induce the opposite. Economists are mostly very misguided people.

 

The world economy is getting some lift after rising at an annual rate just shy of 3% in the first half of this year, according to David Hensley, director of global economics for JPMorgan. But much of the boost will come from a lessening of drags rather than from a big burst of fresh growth, said Peter Hooper at Deutsche Bank Securities, a former Federal Reserve official. Recessions in Brazil and Russia are set to come to an end, while in the U.S. cutbacks in inventories and in oil and gas drilling will wane.

Please allow me to chip in here. ‘Lessening of drags’ in a nonsense term. And so is the idea that “..recessions in Brazil and Russia are set to come to an end”. That’s all goal-seeked day-dreaming. Smoke or drink something nice with it and you’ll feel good for a few hours, but that doesn’t make it real.

“I’m characterizing the global economy as something akin to a driverless car that’s stuck in the slow lane,” said David Stockton, a former Fed official and now chief economist at consultants LH Meyer. “Everybody feels like they’re being taken for a ride but they’re pretty nervous because they can’t see anybody in control.”

I really like this one, because off the bat I thought Stockton had it all wrong. What I think is the appropriate metaphor, is not “a driverless car that’s stuck in the slow lane”, but one of those cars in a carousel at a carnival, a merry-go-round, where you can sit in it forever and you always end up in the same spot. And the only one who’s in control in the boss who hollers that you need to pay another quarter if you want to keep on riding.

Or, alternatively, and to stay at the carnival, it’s a bumper car, which allows you to hit other cars and get hit, but never to leave the rink. That’s the global economy. Not getting anywhere, and running out of quarters fast.

Still, for the first time in the past few years, Stockton said he sees a real upside risk to his forecast of continued global growth of around 3% next year. And that’s coming from the possibility of looser fiscal policy in the U.S. and Europe. In the U.S., both Clinton and Trump have pledged to boost infrastructure spending on roads, bridges and the like. In Europe, rising populism provides a powerful incentive for governments to abandon austerity ahead of the elections next year – and perhaps beyond. Whether such a shift will be enough to mollify those who have been on the losing side of globalization for decades is debatable, however.

“The consensus in policy-making circles was that more trade meant better economic growth,” said Standard Chartered head of Greater China economic research Ding Shuang, who worked at the IMF from 1997 to 2010. “But the benefits weren’t shared equitably, so now we see a round of anti-globalization, anti-free trade. “Globalization will stall for the moment, until we can find a way to share those benefits,” he added.

Globalization is done. And while we can discuss whether that’s of necessity or not, and I continue to contend that the end of growth equals the end of all centralization including globalization, fact is that globalization was never designed to share anything at all, other than perhaps wealth among elites, and low wages among everyone else.

The EU and IMF have not delivered on what they promised, in the same way that traditional parties have not, from the US to UK to basically all of Europe. They promised growth, and growth is gone. They may have delivered for their pay masters, but they lost the rest of the world.

Anything else is just hot air. But that doesn’t mean they will hesitate to use their control of the military and police to hold on to what they got. In fact, that’s guaranteed. But it would only be viable in a dictatorial society, and even then.

We are transcending into an entirely different stage of our lives, our economies, our societies. Growth is gone, it went out the window long ago only to be replaced with debt. And that’s going to take a lot of getting used to. But there’s nothing that says we couldn’t see it coming.

Jun 222016
 
 June 22, 2016  Posted by at 1:08 pm Finance Tagged with: , , , , , , , , ,  


Founding father of the EU, French economist and financier, Jean Monnet

I stumbled upon an article by Day of the Jackal author Frederick Forsyth, published last week in the Daily Express, that I think every Briton and European and everyone else should read. Forsyth doesn’t delve into the American pressure to form a European Union as a counterweight to the Soviet Union, he sticks with ‘founding father’ Jean Monnet and his reasoning behind the particular shape the Union took. And that is bad enough.

All Forsyth has to do is to quote from Monnet’s work, and I have to admit that while reading it I increasingly got the feeling that it’s quite remarkable that no-one, especially no journalist, does this. It’s there for everyone to see, but that means little if and when no-one actually sees it.

I have repeatedly talked about how the very structure of the EU self-selects for sociopaths and/or worse, but perhaps not enough about how that was deliberately built into the design. A feature not a flaw.

And I don’t think Monnet ever thought about how structures like that develop over time, in which the flaws in that design become ever more pronounced and the more severe cases of sociopathy increasingly take over the more powerful positions. A development that is well visible in present day Brussels.

For me, as I’ve written before, being here in Athens these days is plenty testimony to what the EU truly represents. Not only do we need to help feed many tens of thousands on a daily basis, depression levels are up 80% or so and life expectancy is plunging because proper health care is ever further away for ever more people in a country that not long ago had a health care system anyone would have been proud of.

That is the EU. And, yeah, Britons, do reflect on the NHS. Sure, you can argue it’s not the EU but Cameron and his people that are breaking it down, but it’s also Cameron who is pleading with you to vote to stay in the union.

If it can do this today to one of its member states, it will do it tomorrow to others, and more, if it sees fit. The benefits of the union flow to a select few countries, and to a select few within those countries. And ever fewer are selected as economic policies continue to fail.

It is frankly beyond me to see why anyone would want to be part of that. It’s not about Boris Johnson or Nigel Farage or George Osborne, that is just more deception. It’s about being ruled by midgets, as Forsyth puts it.

Here are some snippets from Frederick Forsyth’s article:

Birth of superstate: Frederick Forsyth on how UNELECTED Brussels bureaucrats SEIZED power

There was nothing base or inhumane about Jean Monnet, the French intellectual now seen as the founding father of the dream, nor those who joined him: De Gasperi the Italian, Hallstein the German, Spaak the Belgian and Schumann the Frenchman. In 1945 they were all traumatised men. Each had seen the utter devastation of their native continent by war and after the second they swore to try for the rest of their lives to ensure nothing like it ever happened again. No one can fault that ambition.

First Monnet analysed what had gone wrong and became obsessed by one single fact. The German people had actually voted the Austrian demagogue into the office of chancellor. What could he, Monnet, learn from this? What he learned stayed with him for the rest of his life and stays with us today in the EU.

The continent of Europe, from western Ireland to the Russian border, from Norway’s North Cape to Malta’s Valletta harbour, must be unified into one huge superstate. Politically, socially, economically, militarily and constitutionally.

There could be no war between provinces so war would be banished. (For a man who had witnessed the Spanish Civil War that was an odd conclusion but he came to it. And there was more).

As coal, iron and steel were the indispensable sinews of war machinery, these industries should be unified under central control. Thus would also be prevented any single state secretly rearming. That at least had the benefit of logic and the Coal and Steel Community was his first success.

But the big question remained: how should this Europe-wide single state be governed? Then he came to the conclusion that still prevails today. In the 1930s democracy had failed. In Germany, Italy and elsewhere desperate people had flocked to the demagogues who promised full bellies and a job in exchange for marching, chanting columns.

So democracy must go. It could not be the governmental system of the new Utopia. It was not fit to be. (He was already president of the Action Committee for the Superstate, his official title. There is nothing new about the word superstate).

Instead there would be a new system: government by an enlightened elite of bureaucrats . The hoi polloi (you and me) were simply too dim, too emotional, too uneducated to be safely allowed to choose their governments.

It never occurred to him to devise a way to strengthen and fortify democracy to ensure that what happened in Italy and Germany in the 1920s and 1930s could not happen again. No, democracy was unsafe and had to be replaced. (This is not propaganda, he wrote it all down).

He faced one last stigma as he sought the support of the six who would become the kernel of his dream: Germany (still ruined by war), France (fighting dismal colonial wars in Indochina and Algeria), Italy in her usual chaos, Holland, Belgium and tiny Luxembourg. How could the various peoples ever be persuaded to hand over their countries from democracy to oligarchy, the government of the elite? Let me quote from what he wrote:

“Europe’s nations should be guided towards the Super-state without their people understanding what is happening. This can be accomplished by successive steps, each disguised as having an economic purpose, but which will eventually and irreversibly lead to federation.”

In other words he could not force them (he had no tanks). He could not bribe them (he had no money). He could not persuade them (his arguments were offensive). Hence the deliberate recourse to government by deception. Both nostrums continue to this day. Study the Remain campaign and the people behind it.

Almost without exception they are pillars of the establishment, London-based, accustomed to lavish salaries, administrative power and enormous privilege. None of this applies to 95% of the population. Hence the need for deception.

At every stage the Remain campaign has stressed the issue is about economics: trade, profits, mortgages, share prices, house values – anything to scare John Citizen into frightened submission. The gravy train of the few must not be derailed. Some of them are already sticking pins into a wax figurine of David Cameron for being soft enough to offer the proles a chance to recover their parliamentary democracy and thus their sovereignty.

Forsyth then continues with a bunch of typically British issues, and ends with:

[..] You have repeatedly been told this issue is all about economics. That is the conman’s traditional distraction. This issue is about our governmental system, parliamentary. Democracy versus non-elective bureaucracy utterly dedicated to the eventual Superstate.

Our democracy was not presented last week on a plate. It took centuries of struggle to create and from 1940 to 1945 terrible sacrifices to defend and preserve.

It was bequeathed to us by giants, it has been signed away by midgets.

Now we have a chance, one last, foolishly offered chance to tell those fat cats who so look down upon the rest of us: yes, there will be some costs – but we want it back.