Tag Archives: Paolo Gentiloni

The second lap

We always seem to have a problem with the second lap, the first lap is OK, it is new, we just started, it is the second lap that is the problem, it is that stage where you are tired from the previous lap and the second wind has not started, mainly because the second lap is not the moment where the body adjusts for prolonged exercise.

That is how some see the EU at present (mainly the Observer). The setting of ‘the EU’s weakness on the world stage‘ is however no laughing matter. As we are introduced to “Ursula von der Leyen believes Europe should take a leading “geopolitical” role in international affairs, reflecting the EU’s status as the world’s largest trade bloc. But turning words into deeds is proving problematic“, and it is “We must use our diplomatic and economic strength to support global stability and prosperity… and be better able to export our values and standards” that is part of the problem, in the first, the EU is su up to the gills in debt through the idiotic scheme by Mario draghi that the EU has no economic strength. The IMF gives the EU in GDP growth 2.8% (2017), 2.2% (2018), 1.5% (2019), and 1.6% (2020). This seems like an improvement, yet 0.1% increase is not really an increase and when we consider that the devaluation of the currency gives the EU debt that is currently around € 10,593,000,000,000 a much larger issue to battle, at present only the German debt is decreasing slowly, but the debt in Spain, Italy, and France (all in the trillions) is still increasing, so where does the EU think it has economic strength? And all this whilst the Financial Times informed us yesterday on ‘Europe braces for new fiscal battles‘, here we see Paolo Gentiloni trying to shake things up (no idea why he was referring to shaking up). The issue is larger than anyone can see, because the stage of “widely disliked given their impenetrable and convoluted nature“, the game where you adjust the rules in the middle of the game with 27 players, the entire stage goes awry in this game where the option of “On the Italian social democrat’s reform wish list will be changes making the rules more symmetrical — allowing for countries to be pushed to boost their economies via fiscal policy in downturns, rather than just reining in deficits and debt” (at https://www.ft.com/content/a062fb2e-3b24-11ea-a01a-bae547046735), and it is the debt these never elected officials are trying to be in deny with. Yet there is also an upside in this (as I see it) if this play goes on, the German population will not tolerate the EU to continue. None will address their debt and Germany (as one of the big four) is the only one who got the debt below 72% of GDP, the rest is in a bismal state and whilst we get that the Italians (French and Spain also) are all about ‘new investments’ they are doing it on a maxed out credit card. And whilst we all see this, we also see “One idea is to give countries extra scope to borrow to fund green investment“, yet the basic issue is that this is yet another idea to IGNORE outstanding debts and the people will have to pay for that. So as we see “has already run up against opposition from conservative northern European states“, we see that the Italian factor (Genitoli) is hiding behind “the urgency of the green agenda could improve its chances“. So whilst we now see “Some will want to use any reform opportunity to loosen the regime. Others will wish to use the greater clarity to make the deficit rules even tighter“, we see a basic fight between the spenders and the none spenders and the non spenders have had enough of it all, it founded the Brexit and there are others who do not want to be caught with the consequences of another nation in a stage with their pants down, as such all the other players will have to grab their ankles (you get the idea). 

So while we go back to the Observer view (at https://www.theguardian.com/commentisfree/2020/jan/19/the-observer-view-on-the-eus-weakness-on-world-stage ) we might see “Trump’s illegal, and unilateral, action effectively blew up the most prized achievement of Borrell’s predecessors, Federica Mogherini and Cathy Ashton – the 2015 nuclear deal with Iran, which was already on life-support because of US sanctions“, it seems that the EU is in some kind of a delusional stage where they take the filtered media view on Iran. Iran had been in a proxy war with Saudi Arabia, it has repeatedly threatened the state of Israel and whilst we are given “the US then insisted that the EU3 (Britain, France and Germany) trigger the deal’s dispute mechanism“, whilst the violations by Iran on the Nuclear pact are completely ignored. All in a stage where the delusional parties are setting the stage where Joseph Borell is in a stage to ‘talk’ with IOran whilst Iran has been refusing to do so and littered transgression upon transgression and the EU remains in denial and seemingly gives the EU press the stage that they are not to report on it for all kinds of unknown reasons. And when we look at the media, they are all so against war that it scares them (which it does), I merely wonder if the US and the UK press would have written ‘The Wrong Track for Confronting Germany‘ in 1943, as we see the New York Times write up the Iranian stage 12 hours ago. In addition, Al Jazeera reported 5 hours ago ‘Iran’s new Quds leader vows ‘manly’ revenge for Soleimani killing‘, which is fine, but this escapes the entire stage as they already had their missile go, yet their ego is not satisfied, so as we are treated to ‘Iran warns of ‘repercussions’ for IAEA after European moves over nuclear deal‘, as well as ‘Iran says it still respects 2015 nuclear deal, rejects ‘unfounded’ EU claims‘ (yesterday, source: CNA), all whilst there are dozens of reports as well as public statements that Iran had transgressed on set limits, so exactly HOW they are ‘respecting’ the Nuclear deal? 

In all this the lack of strength in response from the EU has been frightening. And in regards to the responses, we see on the 20th of January “Mr Mousavi said: “Tehran still remains in the deal. The European powers’ claims about Iran violating the deal are unfounded“, all whilst the news on January 5th was ‘Iran will no longer abide by uranium enrichment limits under 2015 nuclear deal‘, as well as the fact that Iran on state television, on January 5th responded that they pulled out of the Nuclear deal agreement (at https://www.youtube.com/watch?v=RsQ-NBaOUMw), as such we can all speculate on what Mr Mousavi is smoking, but more importantly, in light of all this, the utter lack of diplomatic power by the EU, as such the EU statement “We must use our diplomatic and economic strength to support global stability and prosperity“, Ursula von der Leyen sounds nice, but she cannot deliver on any of that. The EU is in the second lap, out of energy from the first lap and their second wind is nowhere near kicking in. Iran might be the strongest example, but it is not the only one, the lack of action in Syria, the lack of action in Yemen and the opposing support against Saudi Arabia, whilst ignoring the actions of Iran in a proxy war, in a speculated stage of a nuclear pact that was not sustainable in any degree and several parties are in denial of all this whilst there is enough optional evidence that the creation of the amounts of enriched Uranium that is now at the core of it all could not be produced by the amount of centrifuges allowed, there are more factors to consider, yet the supporting evidence is at present too thin (a lack of exact numbers is in play too).

In the end, the EU is an organisation that is on its final steps of becoming irrelevant, the debt made them so and these so called elected officials never stepped in when they were supposed to step in as debt levels were pushed to excessive levels as even now, people like Paolo Gentiloni (not just him mind you) are trying to find ways of getting around the debt for spending purposes.

And the matter will get worse soon enough, as the EU nations are in shambles on the EU budget, especially as Brexit is nearing completion, the members are all in a desperate setting of non-union, as we see news like “a French minister has warned nations they will have to pay more“, which is slightly weird as this was always going to be the setting, I warned of that almost 3 years ago. The stage at present is that Germany (at present) pays 20.78% of that budget and France is up for 15.58%, those are the big two and they are looking at an additional 3%-4% after brexit, which now implies that the long term budget up to 2027 will get a massive slam into a wall, it is in that setting, where nations are now feeling the pinch are confronted with a Paolo Gentiloni who wants to spend more and as such all nations have to pay more. Even as the big three are confronted with the impact on their loans from that change, the smaller nations are still in shambles as they were eager to overspend in their first option and they too will have to pay more, so now we optionally get to see an EU gravy train where none of the members agree on anything, as such that expensive train will keep costs high and not produce results, merley delays. 

So when we look at the stage of the EU and the setting of Ursula von der leyen with her “We must use our diplomatic and economic strength to support global stability and prosperity“, all whilst there is no economic power left in the EU and its diplomatic strength (which is linked to their economic power) dwindles basically as fast as their economy does, I wonder what Ursula von der Leyen is looking at, because the outlook from this side is really grim for the EU.

The second lap is the killer for a runner, as the runner gets better he can run longer, yet the reality of crossing that startline the first time and realising that you have less energy whilst you are at the beginning is the realising factor, yet there is a difference, a runner tends to be realistic about where he is and where he is going, as I personally see it, the EU is seemingly a lot less focussed on the reality of the matter as I personally see it. You merely have to read enough media and focus on the quotes to see that part of the equation.

 

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Patsy Ross and the curse of greed

Yes, we can do all kinds of things in Davos, Switzerland. We can enjoy cheese; we can enjoy the white slopes of Davos and not to mention learn about greed in the World Economic Forum. One article to start with Fortune, who gives us ‘Wilbur Ross Tells Davos: U.S. Is Done ‘Being a Patsy’ on Trade‘ (at http://fortune.com/2018/01/24/davos-2018-trump-wilbur-ross-trade-war-tariff/). The article brings up a few things and has a great ending (from a comedy point of view). With: “Ross also issued a warning against misinterpreting the Trump administration’s hardline approach to trade, in what could foretell what Trump himself will communicate to the Davos crowd on Friday. “We don’t intend to abrogate leadership,” Ross said. “Leadership is different from being a sucker and being a patsy.”“, you see if that was actually true than you would have had fairness in mind with the Trans Pacific Partnership. That document is a joke giving all the power to business and leave governments running for the hills as they get sued for diminished profits, in addition the TPP would not have given additional powers to patents leaving the option of generic medication in the basement. That cursed piece of parchment should never have been allowed to be completed to the degree it was, in secret and without proper open consultation. Now, we agree and accept that this was basically before the Trump administration and they rightfully opposed it, yet the dangers that the people of 12 nations are exposed to and exploited by is just too large. Consider the quote “Critics on the left also said the TPP would pave the way for companies to sue governments that change policy on, say, health and education to favour state-provided services“, since when is any corporation allowed to endanger the health of people by suing for damages? How greedy and stupid does a government need to get by endangering their citizens to such a setting? The full text (at https://www.mfat.govt.nz/en/about-us/who-we-are/treaties/trans-pacific-partnership-agreement-tpp/text-of-the-trans-pacific-partnership), also gives other dangers. Part of the deal was that, large pharmaceutical corporations (most of them American) want to extend the life of their patents, arguing that having spent billions to bring their research to fruition they should be entitled to a just reward so they can invest the profits into developing new medicines, the issue is that that timeframe had been given and they merely want to double that profit as much as possible. Yet in light of an aging population the effect is that generic medication becomes a long term inability driving cost up for the retired population by a lot, in some cases well over 100% more. So as we read that “Time Inc. chief content officer Alan Murray, agreed that pacts brokered decades ago “need a facelift,”“, the people are not given a fair shake in all this, it is all about the large corporations, whilst their tax accountability is off the table, making the forum a very imbalanced exercise. So as we saw the Patsy mention of Wilbur Ross, we are treated to no approach to keep the ‘jokers’ of Wall Street in check, there the political wings all fall silent and that is where the kneejerk dangers are. The law has failed the people, the Wall Street gains are beyond normal whilst those getting the cash seem to remains non-taxable, or taxable to merely the smallest possible degree. In this The Financial Times has an additional setting (at https://www.ft.com/content/cb18f700-011b-11e8-9650-9c0ad2d7c5b5). The emphasis on TTIP over TTP, as well as In this we see that he “repeated a willingness to revive negotiations on trade with the European Union“, yet left the United Kingdom unmentioned, which I see is merely a shot across the bow. In this Davos has been making jabs in that direction for 2 days now. In a place where every word and specific mentions are essential, it comes with clear setting on poses, stances and hand gestures, we see the total disregard and consideration regarding Brexit, or Brexit mentions in the same way that toilet paper advertises ‘softness’.

Finally, there is a continuation from yesterday’s blog as we see (at https://www.theguardian.com/business/live/2018/jan/24/davos-2018-merkel-macron-mnuchin-inequality-slavery-wef-day-2-live), the mention “Macron hails French recovery“, which sounds nice, but there is no evidence on that, only overly optimistic views for 2018. So as France still had 9.8% unemployment in July 2017, that against 4.2% in the UK and 3.6% in Germany, France is a long way away from hailing ‘recovery’. In addition, it was the view of Natixis Research that was used by Reuters to give us: “With growing optimism on the health of the Euro zone economy and its equity markets, it’s easy to forget that GDP growth in some countries such as France is somewhat below what one would expect at this stage in the cycle, with forecasts of under 2 percent for 2017 and 2018. According to Natixis’ research, structural unemployment and the rise in numbers of young people with no qualifications are a drag on the Gallic economy and will keep holding it back. “When the structural unemployment rate is as high as in France currently (more than 9%), recruitment difficulties will very prematurely stop growth,” Patrick Artus, who heads research at the French bank“, as such he uses a more academic stance, but our views partially align, France is not out of the woods yet and the Draghi Stimulus will still hit France as well because that money needs to come from somewhere in the end and France stands well over minus 2 trillion Euro. That is the part all the players are ignoring whilst the paths are made for large corporations, whilst the need to dam the flow through proper corporate taxation. None of that is properly in place in Europe (and the UK needs to fix a few things too). And as the people get to hear from Former UK Prime Minister Tony Blair on how Brexit is a mistake, the first part of my prediction comes out. I only need to see one of the five as mentioned last week to make a similar remark to make the prediction I made over a week ago come true. Yet in all this there is also a benefit to get soon enough. You see as the US is now hitting others with steep tariff increases, he is directly giving the danger that all the others (probably with the exception of Japan), will hit back by doing the same to video games, when that happens America will get a massive hit to that $130 billion market which is predominantly American, in this the tariffs would equally hit the digital sold titles. In light of the numbers, The US is making a dangerous move that could hit them harder than they bargained for.

The fact that Digital game revenue surpassed $10 billion in December 2017 alone gives rise to the awkwardly bad decision that the US set itself up for. We will see if the last day of Davos gives us a few more pointers on how large corporations will see more opportunities come your way that is if we can believe Breitbart. That is how we got the news from the Washington Post with ‘Breitbart called Davos a collective of ‘leftist elites’ and ‘corporate cronies.’ Then Trump said he was going’, the article is not really giving us anything besides the views that Breitbart has and therefore not really informative, but they seem to touch on the part that I found interesting, is Davos about upbeat presentations, or is it the one informal place where certain power players can align their presentations because there will be large shifts in 2018, France seems to be starting the events that will hit the people in Europe, in this Reuters also reported on Italy’s view with: “Italian Prime Minister Paolo Gentiloni sent a message to US President Donald Trump on Wednesday (Jan 24) that leaders can defend their countries’ interests but must respect existing international agreements”, which is a truth, yet as several sides are hitting the European Community, it is a view that raises other questions on current international agreements .

In the end, Fortune dot come gives us two additional parts. The love of blockchain and the need for smart data will be driving elements over the next few years. None of that was a real surprise, but the amount of push towards blockchain was a larger surprise that I thought it would be. Forbes (at https://www.forbes.com/sites/dantedisparte/2018/01/28/one-thing-is-clear-from-davos-blockchain-is-out-of-beta), the power is seen in “While Blockchain and digital assets were widely featured on the main stage at Davos, perhaps the most insightful conversations were taking place in standing room only events hosted by groups like the Global Blockchain Business Council, whose CEO, Jamie Smith, and chairman, Tomicah Tillemann, have emerged as global emissaries helping Blockchain go mainstream. Indeed, Jamie Smith has made it her personal mission to be the explainer-in-chief of this powerful technology so that more of the world can grasp its potential”. I am still not convinced! You see, the Blockchain is clever and it is one that has great potential, yet the push of a solution that is unregulated and in addition to that it is an option for others to skate around the laws, because the use of blockchain will raise legislation to another level. This was partially discussed in the Business Insider on October 20th (at http://www.businessinsider.com/blockchain-cryptocurrency-regulations-us-global-2017-10). With: “Blockchain is the technology of choice for many start-ups. As per research by Outlier Ventures Research Team in May to June of 2016, 200 new start-ups were added in six weeks. Businesses and start-ups popped up around the virtual technology and sprouted with lightning speed. While many countries are supporting the development of the digital currencies, thus encouraging new ways of transacting and new businesses to bud, there are some that have boycotted the new technology, deeming it as an illegal negative disruption that brings financial instability and global economic unrest”. There is no denying the view that Davos is spreading, yet the push (partially implied in the Business Insider) to get Blockchain approved and mainstream by 2025 is a larger issue than some realise. The banking industry that took close to two decades to accept ATM’s to the degree it did in the end is now setting a new digital path in less than 10. That worries me, not because of the digital leap forward, but because of WHY they are doing it and I feel certain that we will see more and more revelations in the next 2 years.

It is my personal feeling that it is a greed driven path and that never spells any good for the people at large around, because they end up paying for it all, one way or another.

 

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