Tag Archives: Front Nationale

It’s a kind of Euro

In Italy things are off the walls, now we see ‘New elections loom in Italy‘ (at https://www.theguardian.com/world/2018/may/27/italys-pm-designate-giuseppe-conte-fails-to-form-populist-government), where it again is about currency, this time it is Italy that as an issue with ‘country’s Eurozone future‘. In this the escalation is “the shock resignation of the country’s populist prime minister-in waiting, Giuseppe Conte, after Italy’s president refused to accept Conte’s controversial choice for finance minister“, there is a setting that is given, I have written about the folly of the EU, or better stated, the folly it became. I have been in favour of Brexit for a few reasons, yet here, in Italy the setting is not the same. “Sergio Mattarella, the Italian president who was installed by a previous pro-EU government, refused to accept the nomination for finance minister of Paolo Savona, an 81-year-old former industry minister who has called Italy’s entry into the euro a “historic mistake”“, now beside the fact that an 81 year old has no business getting elected into office for a number of reasons, the issue of anti-Euro Paolo Savona have been known for a long time. So as pro-EU Sergio Mattarella decides to refuse anyone who is anti-EU in office, we need to think critical. Is he allowed to do that? There is of course a situation where that could backfire, yet we all need to realise that Sergio Mattarella is an expert on parliamentary procedure, highly educated and highly intelligent with decades of government experience, so if he sets his mind to it, it will not happen. Basically he can delay anti-EU waves for 8 months until after the next presidential elections. If he is not re-elected, the game changes. The EU has 8 months to satisfy the hearts and minds of the Italian people, because at present those options do not look great. The fact that the populist choices are all steering towards non-EU settings is a nightmare for Brussels. They were able to calm the storm in France, but Italy was at the tail end of all the elections, we always knew that, I even pointed it out 2 years ago that this was an option. I did mention that it was an unlikely one; the escalating part is not merely the fact that this populist setting is anti-EU; it is actually much stronger anti Germany, which is a bigger issue. Whether there is an EU or not, the European nations need to find a way to work together. Having the 2 larger players in a group of 4 large players is not really a setting that works for Europe. Even if most people tend to set Italy in a stage of Pizza, Pasta and Piffle, Italy has shown to be a global player and a large one. It has its social issues and the bank and loan debts of Italy don’t help any, but Italy has had its moments throughout the ages and I feel certain that Italy is not done yet, so in that respect finding common ground with Italy is the better play to make.

In all this President Sergio Mattarella is not nearly done, we now know that Carlo Cottarelli is asked to set the stage to become the next Prime Minister for Italy. The Italian elections will not allow for an anti-EU government to proceed to leave the Euro, Sergio’s response was that: “he had rejected the candidate, 81-year-old Eurosceptic economist Paolo Savona, because he had threatened to pull Italy from the single currency “The uncertainty over our position has alarmed investors and savers both in Italy and abroad,” he said, adding: “Membership of the euro is a fundamental choice. If we want to discuss it, then we should do so in a serious fashion.”” (at http://news.trust.org//item/20180527234047-96z65/), so here we all are, the next one that wants to leave the Euro and now there is suddenly an upheaval, just like in France. Here the setting is different, because the Italian President is Pro-EU and he is doing what is legally allowed. We can go in many directions, but this was always going to be an unsettling situation. I knew that for 2 years, although at that stage Italy leaving the EU was really small at that stage. Europe has not been able to prosper its economy, it merely pumped 3 trillion euro into a situation that was never going to work and now that 750 million Europeans realise that they all need to pay 4,000 Euro just to stay where they are right now, that is angering more and more Europeans. the French were warned ahead, yet they decided to have faith in an investment banker above a member of Front Nationale, Italy was not waiting and is now in a stage of something close to civil unrest, which will not help anyone either. Yet the economic setting for Italy could take a much deeper dive and not in a good way. The bigger issue is not just that Carlo Cottarelli is a former International Monetary Fund director. It is that there are more and more issues shown that the dangers are rising, not stabilising or subsiding and that is where someone optionally told President Sergio Mattarella to stop this at all costs. Part of this was seen in April (at https://www.agoravox.fr/actualites/economie/article/a-quand-l-eclatement-de-la-203577). Now the article is in French, so there is that, but it comes down to: “Bridgewater, the largest hedge fund (investment fund – manages $ 160 billion of assets) of the world has put $ 22 billion against the euro area  : the positions down (“sellers”) of the fund prove it bet against many European (Airbus), German (Siemens, Deutsche Bank) French (Total, BNP Paribas) and Italian (Intesa Sanpaolo, Enel and Eni) companies, among others. The company is not known to tackle particular companies, but rather to bet on the health of the economy in general“. So there is a partial setting where the EU is now facing its own version that we saw in the cinema in 2015 with The Big Short. Now after we read the Intro, we need to see the real deal. It is seen with “Since 2011, € 4 billion has been injected into the euro zone (that is to say into commercial banks) by the European Central Bank (ECB), which represents more than a third of the region’s GDP. The majority of this currency is mainly in Germany and Luxembourg, which, you will agree, are not the most difficult of the area. More seriously, much of this liquidity has not financed the real economy through credit to individuals and businesses. Instead, the commercial banks have saved € 2,000bn of this fresh money on their account at the ECB until the end of 2017 (against € 300bn at the beginning of 2011) to “respect their liquidity ratio” (to have enough deposit in liquid currency crisis).As in the United States, quantitative easing allowed the central bank to bail out private banks by buying back their debts. In other words, the debts of the private sector are paid by the taxpayer without any return on investment. At the same time, François Villeroy de Galhau, governor of the Banque de France, called for less regulation and more bank mergers and acquisitions in the EU, using the US banking sector as a model.” Here we see in the article by Géopolitique Profonde that the setting of a dangerous situation is escalating, because we aren’t in it for a mere 4 billion, the Eurozone is in it for €3,000 billion. An amount that surpasses the economic value of several Euro block nations, which is almost impossible to keep with the UK moving away, if Italy does the same thing, the party ends right quick with no options and no way to keep the Euro stable or at its levels, it becomes a currency at a value that is merely half the value of the Yen, wiping out retirement funds, loan balances and credit scores overnight. The final part is seen with “The ECB also warns that the Eurozone risks squarely bursting into the next crisis if it is not strengthened. In other words, Member States have to reform their economies by then, create budget margins and integrate markets and services at the zone level to better absorb potential losses without using taxpayers. A fiscal instrument such as a euro zone budget controlled by a European finance minister, as defended by President Emmanuel Macron, would also help cope with a major economic shock that seems inevitable. Suffice to say that this is problematic given the lack of consensus on the subject and in particular a German reluctance. The European Central Bank has issued the idea late 2017, long planned by serious economists, to abolish the limit of € 100,000 guaranteed in case of rescue operation or bankruptcy bank (Facts & Document No. 443, 15/11 / 17-15 / 12/17 p.8 and 9)” (the original article has a lot more, so please read it!

It now also shows (read: implies) a second part not seen before, with ‘The European Central Bank has issued the idea late 2017, long planned by serious economists, to abolish the limit of € 100,000 guaranteed in case of rescue operation or bankruptcy bank‘, it implies that Emmanuel Macron must have been prepped on a much higher level and he did not merely come at the 11th hour, ‘the idea issued late 2017’ means that it was already in motion for consideration no later than 2016, so when Marine Le Pen was gaining and ended up as a finalist, the ECB must have really panicked, it implies that Emmanuel Macron was a contingency plan in case the entire mess went tits up and it basically did. Now they need to do it again under the eyes of scrutiny from anti-EU groups whilst Italy is in a mess that could double down on the dangers and risks that the EU is facing. That part is also a consideration when we see the quote by Hans-Werner Sinn who is currently the President of the Ifo Institute for Economic Research, gives us “I do not know if the euro will last in the long run, but its operating system is doomed“, yet that must give the EU people in Brussels the strength they need to actually fix their system (no, they won’t). The question becomes how far will the ECB go to keep the Eurozone ‘enabled’ whilst taking away the options from national political parties? that is the question that matters, because that is at play, even as Germany is now opposing reforms, mainly because Germany ended up in a good place after they enforced austerity when it would work and that worked, the Germans have Angela Merkel to thank for that, yet the other nations (like 24 of them), ignored all the signs and decided to listen to economic forecast people pretending to be native American Shamans, telling them that they can make it rain on command, a concept that did not really quite pan out did it? Now the reforms are pushed because there were stupid people ignoring the signs and not acting preventively when they could, now the Eurozone is willing to cater to two dozen demented economists, whilst pissing off the one economy that tighten the belt many years ago to avoid what is happening right now. You see, when the reform goes through Berlin gets confronted with a risk-sharing plan and ends up shouldering the largest proportion of such a machine, that mechanism will avoid the embarrassment of those two dozen Dumbo’s (aka: numnuts, or more academically stated ‘someone who regularly botches a job, event, or situation’), whilst those people are reselling their idea as ‘I have a way where you need not pay any taxes at all‘ to large corporations getting an annual 7 figure income for another 3-7 years. How is that acceptable or fair?

So we are about to see a different Euro, one losing value due to QE, due to Italian unrest and against banks that have pushed their margins in the way US banks have them, meaning that the next 2 years we will most likely see off the wall bonus levels for bankers surpassing those from Wall Street likely for the first time in history, at the end of that rainbow, those having money in Europe might not have that much left. I admit that this is pure speculation from my part, yet when you see the elements and the settings of the banks, how wrong do you think I will be in 2019-2020?

So when we go back to the Guardian article at the beginning and we take a look at two quotes, the first “As the European commission unveiled its economic advice to member states last week, the body’s finance commissioner, Pierre Moscovici, said he was hoping for “cooperation on the basis of dialogue, respect and mutual trust”“. I go with ‘What trust?‘ and in addition with ‘cooperation on the basis of dialogue merely implies that Pierre Moscovici is more likely not to answer question and bullshit his way around the issue‘ and as former French Minister of Economy he could do it, he saw Mark Zuckerberg get through a European meeting never answering any questions and he reckons he is at least as intelligent as Mark Zuckerberg. when we see “Cecilia Malmstöm, said “there are some things there that are worrying” about Italy’s incoming government“, she sees right, the current Italy is actually a lot less Euro minded than the setting was in 2016-2017, so there is a setting of decreased trust that was never properly dealt with, the EU commissions left that untended for too long and now they have an even larger issue to face. So that bright Svenska Flicka is seeing the issues rise on a nearly hourly basis and even as we see the play go nice for now, they will change. I think that in this Matteo Salvini played the game wrong, instead of altering an alternative for Paolo Savona and replace him after Sergio Mattarella is not re-elected, the game could have continued, now they are busting head to head where Matteo is nowhere near as experienced as Sergio is, so that is a fight he is unlikely to win, unless he drops Italy on a stage of civil unrest, which is not a good setting for either player.

We cannot tell what will happen next, but for the near future (June-September), it is unlikely to be a pretty setting, we will need to take another look at the Italian economic setting when the dust settles.

 

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Banking France

The last few days have seen a serious change in multiple directions in Countries all over the place (in that rugged area known as Europe). One part is not a surprise, the news that the ‘Pound jumps against euro‘, it is the second part ‘as Germany’s inflation data shocks markets‘ that is cause for concern. We should not be that surprised, because it had been known that Germany was facing a slowdown, which in light of so many events in Europe makes perfect sense. It is the by-line “as German inflation fell short of expectations to give a big setback for the European Central Bank (ECB) programme to support the Eurozone economy” which is the actual story. You see, last week I mentioned Mario Draghi and the dangers he represents, we now see the first chunk of worry that came from ‘Decoupling Draghi is hard to do‘ (at https://lawlordtobe.com/2017/03/28/decoupling-draghi-is-hard-to-do/). The mention of Reuters and how big funds are having concerns is now more than a fact. The quote “This assessment had raised hopes the ECB could perhaps cut short the money-printing programme, which injects billions of euros into the economy each month. But the fall in German inflation will be seen as a sign that money-printing will not be reined in any time soon“, implying more and longer printing of money to do something that never worked the first time around and will in equal measure fail the second time too. It is a side that the papers are not touching, not by a mile, yet it is also the reality that we face in the upcoming reality of Frexit. This is seen in two parts.

The first are the big 4 powers in the EEC Economy. France, Germany, Italy and UK. With UK triggering article 50, the stability of the Euro is now gone. Whether we have Frexit or not, the reality is that the Euro has relied on the German economy for a decade and now that there is an issue, that whilst The French economy has been stagnating since at least 2015 (actually longer than that), now with the German economy taking a dive towards no-growth, the issue changes dramatically, because the Italian lack of growth had been an issue for some time. With the German setback, the dangers of printing money becomes a lot more visible and the acts of the ECB needs to be questioned by several governments, who are actually not doing that. In equal measure the media at large seems to steer clear from the entire ECB debacle, which is a worry on another level. All this is now part of another shadow that is covering the ECB. Reuters has given view to the following quote “The documents show repeated violations of the ECB’s own rules by its executive board, chaired by Mario Draghi, and come amid staff complaints of favouritism at one of Europe’s most powerful institutions” as well as “Staff representatives complained last year to the European Parliament, which oversees the ECB, that dissent was discouraged at the bank, potentially hobbling its ability to spot the next financial crisis” an issue that should be very much on the minds of every European government, as the ECB is costing them a fair amount of money. Another Jewel from Reuters is seen in the quote “Recent comments from the ECB were misinterpreted, according to a Reuters report citing ECB officials, after President Mario Draghi dropped some of the more dovish central bank language and did not replace its bank lending facility at its latest policy meeting on March 9” as well as “adding to the slightly hawkish feeling, ECB policymaker Ewald Nowotny said a week later that the central bank would decide in the future if it would raise interest rates before ending its quantitative easing program, a comment that took market participants by surprise“. Whilst we can argue on the value of “The core inflation rate is currently running at 0.9%, not close enough to the ECB’s stated aim of ‘near to 2%’ to cause President Draghi to change anything, even rhetoric, at the next ECB meeting on April 27“, the reality is that we are facing a quarter of feigned misinformation due to what I would see a as an unacceptable level of ‘miscommunication‘ (read: misinterpretation). Especially when we consider that quote ‘comments from the ECB were misinterpreted‘, misinterpreted by whom? By the economic governmental powers, the banks, the traders? Is a major factor of the ECB not ‘clarity‘? Should clear communication not be seen as a way to thwart ‘misinterpretation‘?

The fact that the ECB is not just showing favour in the wrong places, but a level of non-clarity gives a second failing by the ECB, that whilst they are still printing billions of euro’s on a daily level. Not the place where you want to be anything less than crystal clear. It is that factor that is enabling Marine Le Pen and giving more and more concern towards Emmanuel Macron. There is a second sight to all this. You see, part of the entire election is set on what some agree ‘what is good for France’, yet who decides that? When we consider “The major candidates for the French presidential election Emmanuel Macron, Marine Le Pen and Francois Fillon all present their economic programmes to the Medef employer’s federation today. All will be hoping the influential group will give them the “business-friendly” imprimatur” (source: Reuters), It is in that light that I refer to the Saxo Group, who has an interesting article (at https://www.tradingfloor.com/posts/europe-divided-the-front-nationals-absurd-economics-saxostrats-8577141), there are too many quotes to just pick from and in the end, my version might come across warped. What does matter is the question that follows:

If we agree that the New Franc is not immune to speculation, how come that a national currency is (as claimed) so susceptible to speculative attack?

There is no clear answer, yet it is an important one, one that Marine Le Pen needs to answer. In addition, the article implies that Medef needs the ECB and that there is a link, as such we get two parts, the first is that Marine Le Pen is getting discriminated out of two economic groups, making the French elections no longer fair. The second is that the ECB has been setting up links and connections giving them unelected national powers in nearly every European nation, how is that in any way acceptable, especially when it gives them the influence over elections?

So why is it an issue?

For me, not that much, yet when we consider the actions since Brexit intent, and now that Brexit has started, we suddenly see the same panic driven media mob with headlines like ‘Study: Frexit chaos would be ‘worse than collapse of Lehman Brothers’‘, where we see the label ‘doom-mongering‘ with the quote “the population at large is in favour of the single currency and that there is little to suggest any economic benefit to doing so“, this whilst we know that leaving the Euro is almost the singular reason that Front Nationale with Marine Le Pen is this popular. Then we get ‘Why ‘Frexit’ not Brexit should top bond investors’ fears‘, with the mild claim “‘A more pressing concern [than Brexit] is ‘Frexit’,’ he said. ‘Le Pen is polling well in the run-up to April’s presidential election and looks likely to win the first round. She has pledged to lead France out of the single currency“, which is given AFTER Article 50 was delivered to the processing parties. What remains unstated is that with 2 of the 4 large players remaining, the Euro cannot survive. They are mellowing it down with ‘the Front National is unlikely to win sufficient National Assembly seats to enact her policies and such a decision would probably be subject to a referendum’, yet as I see it, when the French realise that Macron in conjunction with Manuel Valls is gaining momentum, the French are angry (according to several sources), in addition Fillon is losing ground too fast. There is no doubt that it will be between Emmanuel Macron and Marine Le Pen, even as at least three elements have decided to discriminate against Front National, her numbers are still stable. This should be a worrying factor to many as this implies that her vote will be carried by just the French voters, no tainting by Medef or pressure through foreign European leaders.

No matter who wins, there will be a powerful backlash. Even if Macron wins, France needs to realise that changes are essential to survive what comes after. Italy is up next and there the mood is also heavy. The Financial times was ‘timid’ with ‘Italy is falling out of love with Europe‘, it is however not that easy and it is getting harder in Italy on several fronts. Here is largely a blame game in session and the truth is that Europe, the ECB and others are not that guilty in the hardships that Italy faces. Its debt is far worse than Greece and the Italian banks have no way to deal with this problem. So there is a chance (not a very realistic one) that the next in power will start the Italeave signal. Even if that happens, the chance that France and Germany can keep the Euro afloat is much more realistic, but it comes with a two decade burden that any hardship or any recession (read: some kind of economic crash) would be disastrous to both the two nations and the Euro, a risk that the ECB, IMF and Wall Street are very willing to take as it gives them time to find other solutions to not get killed in the process.

So in the end, we are now 36 days away from learning whether the Euro will be dead or only near death, yet still dying.

 

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Twenty One Five

It is the end of the year and I will take a break for a week (not a promise at present). You see, we have had a few instances that will affect us all in the next 18 months, so it is also very astute that we take this time to recognise these events.

France

France is still a number one issue for the EEC. This is in several ways, not just because of the attacks, which are taking a toll, but the political landscape is under fire. The fact that the Socialist party denounced their own members, hoping they would add themselves to the part of Sarkozy (at http://www.bbc.com/news/world-europe-35035230) seems to be a major issue that many are ignoring. So, a party will denounce its own members hoping that Front Nationale will not get the area. How is that political? The quote the Independent had: “The investigation is the latest in a series of financial embarrassments for the Le Pens. The Front National is the subject of a criminal investigation over allegations of “fraud and embezzlement” reportedly relating to over-charging its own candidates for election materials in 2012“, now, I cannot state whether this is true or not, but consider that both parties of Hollande and Sarkozy has had a forever oversized budget that goes well over 800% of what FN ever had, when were they properly investigated? Well there was (at http://www.bbc.com/news/world-europe-28103223), it implies that Sarkozy got support for his elections in 2007 from Gadhafi himself. A man (Sarkozy), claiming to be a mere 4 million in value? In France that is not that much, so there is a lot more going on. Francois Hollande claims his net value to be 2 million, in all this, after they have been in power, the funds and the rewards, that is all they have, or is that all they have on paper? A fair question, yet in all this it is Marine Le Pen that is getting hit with the investigative heat, whilst she was never in power and the fear that both Hollande and Sarkozy show gives more and more weight to the frightful question: ‘What if she really has a valid point?’, a question many fear addressing?

So is the Front Nationale nothing more than a storm in a tea cup? That remains to be seen, the economic disaster that France currently is, is nothing to ignore, too many players are making light of a 5.7 trillion dollar debt. A debt that is held outside of that nation, whilst its own economic forecast is not moving forward. France cannot meet a mere 1% in interest at present, 57 billion just to break even, it might seem little but the present parties have been unable to keep a proper budget, which means that none of the debt is reduced, or even maintained, it just grows!

It would be too hypocritical to slap Greece around for this and ignore France (or Italy, or the UK for that matter). Restoration is what FN is fighting for and we all know the current path is NOT working, FN is willing to change that path, and corporations like Natixis have both Sarkozy and Hollande in their pockets.

OK, I will correct that statement! When Natixis calls, no one in the Élysée Palace will not pick up the phone, something that might happen when Marine Le Pen takes office, which is a dreadful thought for Natixis, especially as they need the current game to go on as long as possible. And if you think that Natixis is something small, then think again. It is privately owned and one of the most powerful banks on the planet, a real French player. Fitch rates Natixis at ‘F1’ (at http://www.reuters.com/article/idUSFit94468520151221), it doesn’t get to be any better for those short term loans. Natixis stays away from front pages and it could devour the Bank of Scotland without too much effort, interesting that such a power player in economics is not seen with the political player it wields.

How does this involve Marine Le Pen?

That is the kicker, it does not, more important, there is more and more evidence that she does not want to get comfy with these power players. The moment the French population realises that they were sold down the line and that Marine Le Pen was the one trying to prevent it that is the moment that things in France really turn ugly. There was a reason why Hollande would give up two regions with voters, just like that! The price of what is behind curtain number three is too scary for both him and Sarkozy, a fact not revealed by many people who could have done so.

The second part in all this is Nigel Farage, for if France is going Frexit through Le Pen, Farage remains the pushing ‘champion’ for Brexit. And in all that we must realise that when either Brexit of Frexit hits the front door, a panic will hit Europe in many ways. Now we see ‘Nigel Farage says Ukip’s MP Douglas Carswell ‘can put up or shut up’‘ (at http://www.theguardian.com/politics/2015/dec/18/nigel-farage-ukip-douglas-carswell-leadership). I saw this issues rise on May 16th (at https://lawlordtobe.com/2015/05/16/you-be-kipping/). Then I had the quote “But a senior UKIP source said he had no doubt that a coup was under way, despite O’Flynn’s claims of loyalty. The source also claimed the deputy chairman, Suzanne Evans, as well as the party’s only MP, Douglas Carswell, and much of the UKIP press office in London appeared to be working together to undermine Farage”. You see Carswell was not doing too well as a Conservative, so he turned seats and Farage wanted senior players, he badly needs them, in all that the issue was that Carswell just wants a comfy seat, so when UKIP did not make the growing curve we all expected (they still made massive strides forward) Carswell had to make alterations for his own future. See here the issue, not for the future for his party or his constituents, his own future, which is not the same.

This is where I differ from the Guardian. The Guardian states “The row reignites longstanding tensions between the two men ever since Carswell defected from the Conservatives 18 months ago. However, this is the first time Carswell has called for him to resign outright“, which is actually true, but the pushes I saw 7 months ago have been in play for that same amount of time, gives way to the deliberation regarding the statement whether ‘outright resignation’ is not just a marketing gimmick and undermining is not the same, so why is that subtle difference not outspokenly dealt with in this article?

The part in the article that does play is seen here: “Pressed on whether Carswell would have to leave if he will not curb his criticisms, Farage said: “We cannot have and I don’t think the NEC will allow one individual to give an impression to the country that Ukip is divided when actually it is very united”. The Ukip leader also claimed to have the unanimous support of his party’s national executive, his MEPs and 91.4% of Ukip voters based on a recent opinion poll“, which is at the heart of the matter, the 4 million votes were for Farage and not Carswell. My Conservative side enjoys the infighting as I am not in favour of UKIP winning, but the truth is clear, as the Americans would state: “there is a very Benedictian side to Douglas Carswell that makes me shiver when he enters the room“, I feel that same way, Douglas Carswell is about himself, I do not trust a person like that back into the party, yet he also has the danger of rustling the wrong feathers, because when his play is clearly shown it will unite UKIP even stronger, a side us Conservatives are not that keen on at present, UKIP remains a danger of growing vastly over the next year, they pushed in second place in too many places, unity may give drive to that. In this I believe in the Conservative solution for the UK, it is a painful one, but the debts have been too great to leave them unattended and if Frexit becomes a reality, those pains could kill us economically for long time, reducing debt is the only solution here.

This is where this annual tale of two nations ends. You see both Nigel Farage and Marine Le Pen wants massive change, yet the difference is that Cameron and Osborne accept how things were and they are changing the patterns of where we end up, which is why the issues in the UK are hard and they will not let up any day soon, in France both François Hollande and Nicolas Sarkozy will work whatever deal they can get giving in to power places like Natixis, which is good for their long term value, but it will do the people of France little good, because that debt is not a mill stone, it is a gravestone for a nameless person that they carry around their necks. Something France should not accept, France is too proud, my worry is why the French do not see that Sarkozy and Hollande were part of that problem all along. Perhaps they do realise it and they are not just ready to put all their faith in Marine Le Pen, which would be fair enough too.

Twenty One Five was all about economic issues that never got resolved. In all this the US economy remains at a low, revised down again, all that at the end of the year, when Christmas numbers should fuel speculations on how ‘great’ the economy is, we see that predictions are down 0.1%, for a nation that is approaching a debt of 19 trillion, it is not a good thing to look forward to. Some papers iterate on how for 10 years, the US economy grew less than 3%, they all ignore on how spending has not been culled either, is it not weird that as oil prices are so down at this point they are now lifting the export ban on crude oil? So as these panic moves are made, consider that the Dollar is in my opinion set at an inflated point, when that collapses, what happens to the Euro? Because that directly impacts France and its debts and it will hit the UK too. And should you doubt my words in all this (which is always a fair choice) then consider that my doubts on Greece are now finally reflected by the BBC (at http://www.bbc.com/news/business-35122710). As simple math I was able to do two years ago, they are finally catching on. The quote “With the disbursement of one billion euros, the ESM is supporting the Greek government in its reform process” is a massive delusion. The idea is nice, but Greece does not need a reform, it needs to be rewritten nearly 100%, that is not a reform. Their view on reform is like upgrading your Nissan Micra to a Jeep, it is not an upgrade it is a different car all together, that recognition is still far away and with the Greeks protesting on every corner neither solution will become reality any day soon. The one interesting side is that Greece has no shed its part in Turkey’s Finansbank towards Qatar National Bank SAQ, so either that was a loss point, or the banks are wantonly shifting away from Greece altogether. You can read it in more than one way, yet (at http://www.ekathimerini.com/204547/article/ekathimerini/business/qatars-qnb-acquires-national-bank-of-greeces-stake-in-finansbank), we see the quote “planned the sale of its Turkish unit to plug a capital shortfall identified in European Central Bank (ECB) stress tests in October“, this makes perfect sense for Greece to get rid of it and it opens doors for the Qatar National Bank SAQ too. Now consider the last ramification:

If banks are now dealing with stress tests and they are failing, consider how many of them are held by European players and by American players, how many failed the stress tests and how will it impact European Economic Drivers all over 2016?

This is something you should think about!

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Pen Cil le balancement Élysée Palace

The lashes from Marine Le Pen are now swaying the presidential Palace (massively lose translation). This is not a joke, not a quaint reference. It is the direct consequence of European inaction for well over 2 years.  The people have had enough and now, fear is becoming key with the politicians who are relying on Status Quo. The issue goes a lot deeper than most realise and with the acts as shown in the last few days, the boomerang effect that those politicians are achieving could give Front Nationale from Marine Le Pen an even bigger rise.

Consider the following information from the BBC (at http://www.bbc.com/news/world-europe-35025846) “The nationalist FN got about 28%, ahead of the centre-right Republicans party led by former President Nicolas Sarkozy, which polled just under 27%, and the governing Socialist Party (PS), trailing with 23.5%“, in addition, consider the Guardian (at http://www.theguardian.com/commentisfree/2015/dec/07/marine-le-pen-front-national-france-cowardly-elite ) with “The fact is that France has failed to adapt to the challenges of globalisation. Its education system, for example, is stuck. Studies show that the lycée system increases social inequalities instead of reducing them, which means it is utterly failing in its republican mission to act as a social ladder“, this are just two of several issues that are in the main field of consideration by the French. I am not even getting close to the attacks in France or the Refugee issues in France. Instead, see the actions in opposition, again from the BBC, now at http://www.bbc.com/news/world-europe-35035230. Here we see “His Socialist Party (PS) has withdrawn from the second round in two regions to unify the anti-FN vote“, there he is moving away so that HIS opposition can yield more points against Marine Le Pen!

Are you freaking kidding me?

So even before the elections, party B gives their optional seat to party C, because it is afraid that Party A gets too many votes. How is that not treason against your own voters, how is this anything else but a group of people demanding to stay in the main seats and as such they are aggregating votes. In the past I spoke about one of the most powerful non-American economic wielders. The name Natixis, last year they stated (at http://philippewaechter.en.nam.natixis.com/2014/04/07/issues-of-economic-policy-in-france/) “The chart clearly shows that the GDP profile is conditioned by the private demand. Government demand has a positive but monotonic increase of its contribution. Contrary to private demand there are no fluctuations. Net external demand has a negative contribution which is consistent with larger external deficit on the period. There are no surprises in the decomposition“, well spoken by Philippe Waechter, chief economist of Natixis Asset Management. In addition he stated “The stronger private demand could go through incentives for consumers or for companies. Currently, it would not be efficient to go through households. Last year, there was an interesting situation. There exists an instrument of profit-sharing in France (l’épargne salariale). The rule is that employees have to keep this amount of money on a specific account for five years. But from time to time a government wants to use these important amounts to support consumption expenditures. That’s what was done in 2013. It was not a success. Households have kept their saving on their account and have not spent more. A stimulus policy that, at this moment of the cycle, goes to consumers would probably be counterproductive and would fail to boost economic activity“, this now gives us part of the statement from the Guardian in the title ‘France’s cowardly elite is to blame for the rise of Marine Le Pen‘, which comes from Natalie Nougayrède. It is her last paragraph that is the issue “Marine Le Pen has no solution for France’s problems, her economic programme is all about retreating from the outside world and Europe. Her social vision is of a mythical, homogeneous France that never existed. What she has to sell is an illusion. It’s only because so little else is on offer that people are buying

You see, as I see it: “Marine Le Pen is realising that an unaccountable wave of government is no solution for France’s problems, her economic program is all about cutting of these irresponsible spenders and gamblers who speculate and end up personally rich no matter how the end result falls. Her social vision is of a mythical, homogeneous France that cannot exist as European governments are not held accountable for massive overspending, including previous French presidents. What she has to sell is a nightmare for the exploiters as their gravy train ends. It’s because the damage has been too extreme that the French are considering an extreme change, in their view it is very unlikely to get any worse“.

It is all about the point of view and the fact that current politicians are too afraid (or made to fear) the change that coalitions for partial France are considered out of fear of the upcoming victory of Marine Le Pen.

Now reconsider the words by Philippe Waechter “from time to time a government wants to use these important amounts to support consumption expenditures“, which in itself is not an issue, France is not the only country doing this, many nations have done this in the past (and are still doing it at present). Yet France has been overspending by 5 trillion, which leaves the French people with no options whatsoever, this also means that new venues need to be sought and that has been delayed by too much through too many, which is exactly why the people are desperate for change. The step that follows will impact Europe in many ways, because the first one who leaves the Eurozone might get a deal, yet there will be no price for second place, which is why the Brexit vs Frexit issue is so strong all over the field. You see, when France moves out, the UK and Germany will have no options left, they will have to decide sooner rather than later. Because from the three in the field (UK, France, Italy), leave any one out and that millstone named Eurozone will kill the other two who are left, which will be a massive crises that follows. It also scares the US to no end, so we will hear many ‘phrased’ articles and stories all over the field.

In my view, PM Manuel Valls made a massive mistake, by trying to split France between himself and Sarkozy will only strengthen the fear of them and the willingness towards Marine Le Pen and Front National. Will I be correct? That truth is only a matter of time, but I feel that the early hours of the second round of regional elections will quickly show me to be either correct or wrong, my ego makes me choose option 1. The two regions here PS (Parti Socialiste) is pulling out is clearly in hands of the Le Pen family, with over 40% of the votes, By pulling out the party of Hollande hopes that their 23 percent will add themselves towards Sarkozy who has 27%. Such cowardice should not be rewarded! Whether the French voters will realise this remains to be seen, but I reckon that the Le Pen family will be adamant to inform the voters of this. The fact that both Hollande and Sarkozy are scared of the beautiful niece of Marine Le Pen who rules south Eastern France at present has less to do with looks and more to do with the fact that the parliamentary candidacy of Marion Maréchal-Le Pen for Vaucluse’s 3rd constituency was publicly confirmed on 25th April 2012 is pretty much a given. She will have 4  years of experience (at the youthful age of 26) when the elections are up. The fact that she grew from 2008 where she got no seat and 6.29% of the votes whilst now in the first round she took 41% of the votes should not be overlooked either. I cannot state that I know a lot about her, but I don’t believe for one minute that it is about her looks, as the French are used to good looks. France is about business and the fact that the Le Pen family now lead 6 out of 13 regions is a clear indication that the French population is voting a ‘no confidence vote’ to the failed economies of both Sarkozy and Hollande; they are desperate for an improvement and kicking Europe out of their decision line seems to be comfortable to the voters at present. I am not certain whether I can disagree with that view.

The game for the French is about to change in a massive way, I wonder how France will impact the EEC, because they will have a massive impact, just envisioning this is part of the problem, the situation is currently very unique, even (read: especially) for France. In the end, I still believe that this would not have happened to the degree it has, if the EEC had taken a much firmer stance on Greece, that is the side of the EEC that escalated many issues for too many players. Should you doubt that, than consider Italy’s  Lega Nord with Matteo Salvini at the helm, who is labeling the euro as a “crime against humanity”. A party that had zero chance in 2012 is now an actual contender for the Italian presidency.

All this because of a warped need for an economic Status Quo.

 

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Double standards, no resolve (part 1)

This is at the heart of two matters that are at play. The mere notion that change will do anything definite is just a laughing matter. Yet, it is not laughter at the people trying to do this; it is about the next two cogs of grinding that will halt it all. The first issue is Greece. There had been little doubt on Alexis Tsipras winning this, I was holding my breath in favour of Antonis Samaras winning, but it was never overly realistic. The problem is what will happen now. The direct issue is that none have been able to deal with Greek corruption in any way, shape or form. The fact that Kostas Vaxevanis and not those dodging Greek taxation ended up in a courtroom in 2013 is still additional cause for concern. Can we agree that as Greece has not been able to do ANYTHING about the mounting debts from 2009 onwards, a massive change must be made! It goes hand in hand with the quote we see in the Guardian “Priti Patel, Conservative MP in Westminster, just told Sky News that Greece’s economic problems are “a stark reminder that we should never join the euro”“, I will take it one step further, if Alexis Tsipras is not massively careful on what he does next, the downward curve (curve, not spiral) of the Euro will only fuel both British UKIP and French Front Nationale even further, it could also force the German people to feel pressure to leave the Euro in a failing attempt to bolster their diminished fortunes. It is a failing notion because no matter what happens next, those under the Euro will take a hard hit over the next 2 weeks, whatever bolstering will happen, it will only aid the super wealthy and only short term as they recap their non-tied down wealth as I personally see it.

The biggest issue remains corruption and tax evasion in Greece, no matter who comes next, without dealing with those two elements is simply selling a fairy tail (pun intended) to the Greek voters. This is at the heart of Zoe Williams piece that I disagree with (at http://www.theguardian.com/commentisfree/2015/jan/25/syriza-uk-left-labour), the title is already a bit of an issue for me ‘Syriza stood up to the money men – the UK left must do the same‘, which money men are you referring to Zoe? The artful tax dodgers, who are partly to blame for the entire mess, yet no one has the cajones (or any jurisprudential power) to actually prosecute? Or are they the people holding the debts? Let’s not forget that governments got ‘assistance’ under the strict rule of austerity, a promise never kept, because none of these politicians will do anything about them Greek artful tax dodgers.

There is also another side, the fact that less than 2100 Greeks have this much money in unpaid tax debts seems simply ludicrous to me (the Kostas Vaxevanis list of 2100 naughty Greeks), so I wonder how much spending should have been cut for over half a decade, so again we get to Alexis Tsipras, who would need to cut massive spending, for the mere reason that there is no money coming into the coffers. Yet, within the article Zoe wrote, there is a gem, it is out there in the open and it has been there for a long time: “Ukip is often saying something similar to the Greens: business interests aren’t everything. That’s a reality that the majority feels, but that you never hear described; that’s how the Greens overtook the Liberal Democrats, while all eyes were on Ukip“, when we see ‘business interests aren’t everything‘ we need to realise that this is not just corporate greed, it is a majority of corporate greed signs that have been rampant on a global scale. The issue of a 15% board of director’s wealth growth in a 2% margin world; how was that ever a sustainable situation? It is also the deadly option Alexis Tsipras might opt for. As Greece becomes a possible tax shelter ‘for a fee’, to allow for closed bank account details under limited donation of revenue (all for the people approach) where we see the next waves. Global corporations will love the coming step (if it happens), a non-accountable 0.3% tax account, each coming with its own island. It will anger the American IRS (and State Department) to no extent, it will drive the IMF into entirely new problems and the rest of Europe will see a shift of fund flows. This is all assumption (read speculation) on my side, but it could work for Greece, for a very short time. I reckon that this step, if taken, might have one massive obstacle, that would be assuring that another Kostas Vaxevanis list never surfaces, so when you see any announcement on the new Apple iOlympian or the new Google Nexus ‘Theíos’, then you know that Greece will be embracing new tax free shores. The question now is not, what is the solution, but what options are actually open?

We can accept the statement from Professor Christopher Pissarides from the London School of Economics “Greece’s debt pile is simply too high for the country to return to growth and services its borrowing”, in addition, we can accept the words of Yanis Varoufakis MP “Grexit is not on the cards, we will not go to Brussels in a spirit of confrontation. There is plenty of room for mutual benefit”, this all sounds fine, but if no one is actually actively dealing with the list of 2100 of Kostas Vaxevanis you tend to not have that many options, which means you need a decently strict austerity regime, the one issue that got them elected by disposing of.

What is the option of change?

Well, with my law education, I do have another path for Greece, yet, it is an uneven path, but it could be a long term salvation if it works. Now, feel free to object to the notion and if you are a law professional, than those remarks will be met with my personal investigation. So here is the premise!

Issue: The levels of corruption within Greece are beyond several layers of acceptability. We all acknowledge, that any nation will have a level of corruption, however, what can be done to stem the tide in a novel way.

Solution: As the current legal system is in such disarray, the mess will evolve from bad to worse. We might state that it had gone from worse to unsustainable, so what if we change the premise altogether? What if the new Greece will implement a new legal system from a common law system? Instead of making their civil law more draconian, with of course the added danger of more loop holes, what if Greece evolved into a Common Law nation? It will still be based upon Greek constitution and Greek values, but will come with a few centuries of English jurisprudential evolution. The benefit is that it does not need to happen overnight, but can be structured to deal with the tax laws and criminal law (corruption, fraud and such) first. You see, if there is no faith in the Greek courts, would it not make sense to evolve the justice system (this is a choice of words; this does not indicate that a civil law system is less evolved than a common law system).

It seems that the evolving flexibility of common law is exactly what Greece needs, no matter how good the law is regarded now in Greece; it has failed a nation and its people. This is at the unspoken heart of several issues. There is ample concern on such changes too; the big issue is that no matter how the Greeks feel at present, there is enough concern that Alexis Tsipras is not the new hope, he will be their last hope, because if no solution grows now, Greece will be finished, that much is clear. The reported word from several nations, in many publications is all about reforms. Greek journalist Nick Malkoutzis from the Kathimerini English Edition stated today “Syriza’s top priority should be to reform the justice system, the civil service and the tax-collection operations, to show Eurozone allies he is serious”. He is one of many voices stating issues in this direction. Yet, reforming a justice system is also wrought with the dangers they get when new legislation is passed. It sounds good in theory, but such reforms tend to be time consuming ones and that is one element Greece no longer has. It has been sustaining on borrowed time too long and those holding the debt papers are out of patience (loss of profit will do that to these people). So will common law be good or bad for Greece? I personally do not know, but the current system is not working and so far, the failed system has not been overhauled or tested since the 2009 collapse, which makes the issue more pressing, so as Alexis Tsipras claims it is turning a page, will it be for better or for a lot worse for Greece and for the Greek people. Only time will tell.

 

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Should I run for office?

That was the question I was wondering about yesterday. I am not much of a politician, but I feel that the current batch is not getting anything done in the UK, so why should I, an Australian consider running for office in the UK? Well, first reason is that my heritage is there, but more important, whatever hits the UK, will impact on Australia in more than one way later down the track, so getting the punches in for the commonwealth all over is not the worst idea to have.

So who to join? Labour, well, they are not getting anything done at present, and in two nations, Labour had spent enough to cover the budget of more than two nations. Liberal Democrats?

I do not think they are anywhere near fit enough to govern and Nick Clegg is not making it any easier with promises that get set back. I see them as the party that grows a little by having the backs of the conservative party, which makes it a follower, they are not leading. I have seen man great and small, I have met leaders, I do not regard Nick Clegg to be one.

So now we have two remaining, the Conservatives and Ukip. Now we get a new issue. If we regard today’s news: ‘Ukip recruits BBC’s ‘Gobby’ as communications director‘ (at http://www.theguardian.com/politics/2014/dec/07/ukip-bbc-gobby-communications-director-paul-lambert-nigel-farage), we see a game changer. Ukip is beefing up their political engine with a heavy weight. We see the quote that draws us in first “Over the past few years I have been following the work of Ukip and Nigel Farage, and I feel that he is changing British politics for the better. I am delighted to be able to add my experience to his team“, now we get to the issue! Yes, Nigel Farage is changing politics, the question is, is it for the better?

It is a dangerous issue to debate, I can only debate it from my -point of view and for the most we seem to depend on past political achievements, what are they? Here, we see the Telegraph and the Daily Mail handing us a part that actually matters (who would have thunk it). The headline already gives us the beef of the issue ‘British politics is broken – and only Nigel Farage is profiting‘, which is how we seem to regard UK politics, within the UK and outside of it. The article gives us this bit “There has been no Axelrod figure lurking behind Mr Farage, trying to make him say the right things or wear the right clothes. He has advanced to his position of unprecedented public influence on his own terms. Voters sense this and respect it“, it is in actuality a much stronger recognition than most realise. The people want a person who does HIS (or HER) things, not chewed down, analysed and reshaped for maximum potential. We all want to meet the ‘real’ politician. Nigel has been playing that part and played that card brilliantly. He has a decent amount of charisma which does not hurt either. The Daily Mail is less subtle about it. ‘But this is what you get when a smug metropolitan elite treat the people with contempt, writes Dominic Sandbrook‘ here we see “What Mr Farage has tapped into is a widespread national discontent that cannot merely be dismissed — as some metropolitan commentators have tried to do — as racism or xenophobia“, there is a little more than that, but the elements are shown, by the way, the picture of Nigel Farage holding a pint helped Nigel enormously. The people are seeing a person THEY can relate too, both Ed Miliband and David Cameron forgot about that. I saw Ukip as a serious concern in May 2013 at ‘UKIP or U.K.I.P? (Ur Kiddin’ I Presume?)‘ (at https://lawlordtobe.com/2013/05/04/ukip-or-u-k-i-p-ur-kiddin-i-presume/)

I still see myself as a conservative, yet here things are not going so good either. Part of this is David Cameron’s own fault. Ukip should have been treated more seriously long ago, now they are gaining momentum, whilst the conservative train is losing speed. I think that the conservatives did play the game right for most, but it is the game that the voters have had enough off and they are looking somewhere else at present, which gives us this predicament. So where should I run for office in the UK? (Beside a few minor glitches regarding not being a British citizen). When I look at my family’s history, then there are a few options. I would look at my family’s history to behold my options. The first place is Saffron Walden, which has a link to my grandmother’s heritage. There we see the conservatives with Sir Alan Haselhurst clearly in seat, no threat of Ukip coming there any day soon. The next part is my great grandfather, which gives me Exeter. Here we see Labour as a temporary majority. Now we have ourselves a ball game. I have to work the brain magic, because on looks, Ben Bradshaw, will easily win. Dominic Morris is in the prospective seat for the conservatives and he is not strong, he needs support. Perhaps Dominic would consider the photograph on his LinkedIn profile? Which if the 5 persons is he? Not the best setting for a former RAF trained pilot, only two jobs of 2 years of more, the rest were all mere months. Not the greatest profile here, but it does read slightly distinguished.

You see, here Ukip has an advantage; Keith Crawford is a business man, on YouTube you can see that he knows how to address an audience, showing how EU costs are costing the British people a fortune. He is a former soldier who shaped himself and went into business, her shows that he has options, he worked hard and he made it, an Englishman in England. Dominic Morris will have one hell of a fight on his hands and not just a real fight; he is less likely to win on the data I am seeing. Especially as Keith Crawford is discussing both cheap labour and freedom of movement, we see that Keith has the ability to win this election. I am ready for this fight if need be!

The weirdest part is that I worry about in this fight is that Keith Crawford could have been a formidable Conservative, not with the looks of Ben Bradshaw, but with the voice, the insight and knowledge to be better than Ben Bradshaw. Not that Bradshaw is all looks, as a graduate from the University of Sussex, he has his degrees and he has been a member of parliament since 1997. Still, at present it is about economy and jobs, which is why (as I see it) Labour is to be regarded out of its depth and with a less then strong representation from the conservatives, Ukip could sweep the votes with no less than 45-54%, which leaves the other 2 (we will disregard the chances of the Liberal democrats here) by a lot.

So, where do I stand, how can I make a difference? That is not a given at all, I remain conservative, but to some extent Ukip is voicing the issues many conservatives have, which is why there is such problem. To some extent, there is more at play then the visible items and those attacked by Ukip do not bare them out, moreover, if Nigel Farage gets the majority and he makes an exit from the EEC, we will see those hidden issues out in force, moreover, the act will drive both Germany and France into a coalition of desperation, they will drive every opposition to anything the UK brings and they will try to remove the economic wind from the sails of economy as much as possible, with less than a 1% positive economy, that could play out to be a very expensive lesson. Yet something must be done ant the status quo is no longer acceptable as is, which conservatives to some degree acknowledge in relative silence, Ukip is shouting out the slogans, but there is more in play then a slogan, which is the issue the British audience will learn the hard way after that.

So as we see that Ukip is now bringing out the big guns, we see an electorate that is leaning towards a massive win for Ukip. Consider that only 19 months ago, Ukip was not regarded as a serious threat. I think it is time to see that Ukip will change the landscape, now you the British readers think back to how your Labour/conservative MP regarded Ukip and see the now, wonder how trivialising their presence has resulted in Ukip becoming the next party as it stands. Now ask that MP what else he trivialised and get to work on those items, because as I see it, avoidance of Ukip is no longer an option, but make sure that all MP’s are awake now and that the Tories (and Labour to a lesser extent) have a fighting chance. Because, like Front Nationale (France), Ukip was disregarded as serious opposition, now we see this “The far-right Front National (FN) scored a historic victory in elections to the French senate on Sunday, winning its first ever seats in the upper chamber as the ruling Socialists and their leftwing allies lost their majority to rightwing parties” (at http://www.theguardian.com/world/2014/sep/28/front-national-wins-seats-french-senate-first-time), we are about to see a lot more changes, many we will not like in the long run.

 

 

 

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Exit strategies anyone?

Today is an interesting day. The article in the Guardian (at http://www.theguardian.com/world/2014/jun/28/european-union-exit-will-harm-britain-says-cbi) is well worth reading and in addition, I must state that I am not sure whether I have made up my mind what would be the best course of action. I have been on both sides of this and I am currently on the fence. First of all, the UK must do what is best for the UK and beyond that the UK should do what is best for the Commonwealth. I personally think that this is the status as it should be at the moment. The question becomes whether Europe is the best for the UK. I am not talking about the Juncker issue (even though that seems to be part of any decision), but where should we be? The headline states “EU exit will harm UK, says leading British industry group“, yes THEY will talk in their own interest, they always do. The Eurostat numbers are unconvincing (at http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-22012014-AP/EN/2-22012014-AP-EN.PDF), today’s reserved savings are tomorrows signal to abundantly overspend funds, that much has been seen again and again ever since 2009, when the taps should have been closed. This is also at the heart of the matter for what is best for the UK. And in all honesty, the UK has overspent their quota a fair bit too. Now we have a new issue. Up to 2013 we got to see a picture from some of the more decently reliable sources, yet, now later in 2014, there is almost nothing on the projected and actual numbers for 2013. There lies the hidden issue, it is not that there is little, there is too little information now, so who to believe. When governments are not boasting, they are definitely hiding some issues under the carpet and those issues will impact the UK too. I will not bore you with the numbers UKIP gives us (at http://www.ukipmeps.org/uploads/file/Cost_of_the_EU_25_5_11.pdf), they are talking their own brand of flavour, as would Prime Minister David Cameron, but where is the truth?

My benefit here is that I speak half a dozen languages, which gives me additional sources. The ‘Nederlands Dagblad‘ gives us (at http://www.nd.nl/artikelen/2014/februari/28/lagere-overheden-verwachten-te-hoog-tekort) the following: “Gemeenten, provincies en waterschappen verwachten dat hun begrotingstekort dit jaar uitkomt op 3,7 miljard euro. Dat is zeshonderd miljoen euro meer dan volgens de afgesproken norm mag” [translated] “Municipalities, counties and Water boards (a flood control and water resources management group) expect that their budget shortage will total at 3.7 billion, which is 600 million more than agreed upon“.

So the Dutch are already coming up short at present. This does not mean that this will be the end result! At http://www.bnr.nl/nieuws/beurs/487506-1302/liveblog-economie-krimpt-begrotingstekort-naar-33-procent-in-2013, we see the mention that the Dutch will have a budget shortage of 3.3% in 2013 and 3.4% in 2014. How much of this is correct, and when were some projections made?

We see the Dutch news on how the American economy is down 2.9% and that Bank managers are now getting a sizeable raises, yet the overall shortages of the Dutch is not really discussed on sites with above average reliability (like the NOS). The only one in a ‘happy happy joy joy’ position is Germany who now seems to have a budget surplus. Again, the harsh cuttings Germany did from 2010 onwards paid off, but they seem to be the only one. France deficit was set at 4.1% for 2014, so as we see the list grow, is it truly a good idea to stay in the Euro group? Industrials might think this, but they will not be confronted with the financial measures that will hit the UK and its taxpaying citizens. I was at first in the same boat where I thought that going out of the Euro was a bad idea, but as we see the growing concern of nearly all EEC countries going over the deficit limit, can the UK afford to stay in there? Moreover, will staying in until 2017 turn out to be a dangerous issue?

This is part of the issues, which I have stated before. When, not if the American economy goes over the edge, those in deep debt will get a new approach to humility. That part is still a dangerous situation for the UK as well (with a balance of almost minus 1.5 trillion). So, the dangers of additional debts from Europe would cripple the UK as well. This is as I see it part of the reason why the UKIP got such a huge success. The bulk of the politicians and all the other parties have been dancing around the economic situation. Most people have noticed it and 26 months of ‘feigned’ economic recovery is nice for the industrials, yet the people have not seen ANY improvements in their lives, which is the centrepiece of all the stress out there. This is part of the situation all are avoiding.

If we consider the Independent (at http://www.independent.co.uk/news/uk/politics/tony-blair-nigel-farage-and-ukip-are-deceiving-british-public-and-holding-back-the-unemployed-with-immigration-rhetoric-9472289.html) we see another side. I would be willing to agree with this, yet the voice of Ed Miliband is not giving decent clarity and David Cameron is voicing the need of big business (to a larger extent), they all are talking in their own fast lane and the people end up being not in any good place.

Even now, less than an hour ago, Ed Miliband is quoted by Reuters as ‘looking to shed the anti-business label‘, which gives a lot less security to the people. In this confusion Nigel Farage is cleaning house as he is stating what people seem to want to hear. The correct critique remains how truthful are his statements?

This is what is driving the people in regards to an exit strategy. As the news is playing a game of what I personally regard as ‘managing bad news’ in several nations, the people are catching up and losing faith in governments in general. This is partially driving the demand for a European exit. The people are losing faith in the ‘facts’ as presented, because good news gets overinflated, bad news is managed and the press seems to help out governments and big business in not giving proper tallies, as too many are depending on advertisement funds (often from Big Business). We all seem to watch a weighted scale. Under those conditions, many prefer to go it alone and see that part return. Let’s not forget that before the Euro, the UK was in a pretty good position. The entire mass flocking to UKIP are remembering those days and they are hoping that they will return to these days and UKIP is talking right into that alley of expectations.

In regards to the article with the quote involving Tony Blair “The answer to the white, working-class unemployed youth in alienated communities in Britain is not to tell them their problems would be solved if there were fewer Polish people working in the UK, he said“. I tend to agree, but the truth is that these Polish workers seem to be getting some jobs and this is causing more stress with those desperately seeking work. I am not voicing any anti-Polish thoughts, the question becomes how did they get those jobs and more important, if this is how some businesses are getting cheap labour, why is this not dealt with in regards to unfair working conditions. The Telegraph (never a great source for quality info) is publishing articles on how 10% of a company is Polish. This is getting to the people, who do not look at the whole picture. The Independent is bringing us a much better story quality wise (at http://www.independent.co.uk/news/uk/home-news/migrants-in-britain-a-decade-on-the-poles-who-brought-prosperity-9278710.html). The article by Emily Dugan shows the story of a Polish entrepreneur, who because a success through hard work, employing dozens of people. This Radomir Szwed shows another side, one that does not get illuminated that often. It is a story all should read, only to show that immigration is not a source of job losses, but one that brings jobs too, yet the Telegraph is not that likely to bring such a story.

All this brings us to a less appealing story in the Guardian (at http://www.theguardian.com/politics/2014/jun/18/nigel-farage-far-right-european-parliament). As the power of Nigel Farage grows in regards to his European side whilst joining with former members of French ‘Front Nationale’ and a more extreme viewed Swedish party, the issues will continue. Even though there is debate on Nigel Farage, he sees himself as the person to voice the needs of Britain, a voice Prime Minister Cameron lost when his opposition to Juncker was defeated 26-2. If Nigel Farage delivers any victory for the British people in any way, the powers in the UK will change leaving the Tories very little options in regards to the EEC. Will David Cameron be forced to call an early vote to exit Europe? Perhaps Nigel Farage will have that option as he currently has the strongest options in Europe. However, not all is well in that regards either, now the votes are done, we see a splintering in what was a solid danger. Some are re-establishing themselves and some are defecting to the new Le Pen group. So, not all is quiet on the eastern front with the EEC.

These matters will bring question to any exit strategy we see on the European front. No matter what happens, until the people get some clear information on how the debts are, where they are and how deficits are going as well as their own options, there will be no relief. The party that brings the best story and adds true relief on the hardship the people in the UK currently have will get a massive spike in votes.

I am not sure any exit strategy will bring that, yet, when we consider the response by Richard Branson (at http://www.virgin.com/richard-branson/why-an-exit-from-eu-would-be-bad-for-british-business), my response is that this is not a given either. If we see what some Commonwealth partners are agreeing to within the TPP (Trans Pacific Partnership), then we are seeing how politicians seem to be lining American Big Business pockets, whilst not overly protecting the their own local interests. This will in the end hit back to the UK as well. Consider that these Trade Agreements are not at all discussed out in the open (which makes sense until some point is reached). It seems to me that the UK needs to talk to Australia, Canada and New Zealand at that point. Because not only will the TPP impact the UK, whomever signs the TPP could be in for a long rough spell whilst US and Japan will hunt down a new currency, which is no longer the dollar, but a currency named IPR (Intellectual Property rights). IPR will be the new gold over the next 10 years. Those who have enough of them survive.

This is the unspoken side of the exit strategy. As the EU is chained to the US in several ways, the UK must secure its future in any way it can, yes we must all get rid of our debts, but in equal measure the UK will rely on its entrepreneurs, which includes people like Radomir Szwed, that is the side UKIP is not really talking about and their immigration changes would have negatively impacted the UK.

I remain on the fence on whether the UK should or should not leave, but complete clarity is a must which is a side the press, in all their whining after the Leveson trials have remained awfully unclear about.

 

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