Posts mit dem Label euro zone werden angezeigt. Alle Posts anzeigen
Posts mit dem Label euro zone werden angezeigt. Alle Posts anzeigen

9/12/2019

What the iPhone Index says about the Eurozone

There is the United States of America and then there is the supposed United States of Europe aka European Union. Both US have their own currency, but only one has a sovereign currency and that shows.

Apple introduced its newest iPhones just days ago. Here is the iPhone Index. It shows the average days a potential buyer would need to work to be able to afford one (see link as to which model and the specs).

Research Picodi.com
It takes an average of 5.8 days in the US. In the EU it is rather different and this difference shows, yet again, who is the real beneficiary of the Euro in the Eurozone. Let's have a look.

A citizen of Slovakia would need to work 31.7 days for a new iPhone. A Greek 27.7 days and someone from Malta 19.2 days. A Spaniard would need to toil for 15.7 days while someone from Belgium just 11.3 days. OK, some of these countries have lower living costs etc.

A German citizen would need to work less than 10 days to afford one. Coincidentally, the same time as an Austrian. No comment here.

Someone from THE tax haven, money laundering locale of the highest order would need to move his ass to work for just 6.7 days. Let's take this as a mere outlier in the Eurozone.

However, and this since Italy dominates the news for political reasons for more than a year, a comparison with Germany offers a striking discrepancy. An Italian would need to work 6 days, or 2/3s, longer than a German for an iPhone.

1/13/2019

Mark Blyth: "If you’re waiting for a bunch of superannuated, septuagenarian social democrats to save your arse start looking elsewhere."

Mark Blyth never disappoints with his trademark one-liners. An excerpt from

The crisis of globalisation: interview with Mark Blyth

What you’re saying is there has been, obviously, some very severe instability at the heart of the capitalist system, and what is described as a crisis of globalisation is basically just a political expression of that crisis of capitalism?

Yes, but there’s also something specific about globalisation. Earlier in my career I spent a long time thinking about economic ideas and how they spread. I’m hardly the only person that’s puzzled over the spread of neoliberalism, but the more that I think about it now the less that I think about neoliberalism as a set of ideas and more of a set of practices. Those practices are to liberalise, integrate, privatise, otherwise knock down barriers to competition, etc.

When you do this with what were essentially national labour markets and national financial markets that were relatively closed—let’s say homogenous states that looked the same, made the same stuff and occasionally traded with each other but kept their finances separate—once you change that, through the practices of neoliberalism, and you become one big market in the [Polanyian] sense of integrated finance and capital movements etc, a couple of interesting things begin to happen.

The first one is labour’s ability to command its share of the surplus declines to zero. The strike becomes a meaningless weapon. Strikes decline to function—like to zero—in the western world. And you get prolonged wage stagnation, because essentially all the surplus goes to capital. There’s no reason for it not to. So labour’s ability to push up wages goes to zero.

But there’s also something interesting that’s happening in financial markets and product markets at the same time. It’s like the second-order effect of neoliberalism. Which is the following. We dumped about 17 trillion dollars—yen, euros and everything else we could get our hands on—and we’re continuing to do so in Europe through QE-type programmes, through central banks, because of the financial crisis. And the weird thing is there’s no inflation anywhere. In fact, Europe is still deflating. It hasn’t hit its 2 per cent target in almost a decade. So there’s no [structural] inflation, despite a massive, absolutely unprecedented monetary injection. That’s also weird.

Then think about the third section, which is competitive product markets. Think about the price of a computer. Think about the price competition going on in all sectors. If you look at words called ‘mark-up’ and ‘margin data’ across firms, what you find, particularly in the US but not exclusively, is that if you’re a digital monopoly you’re making 50 per cent to 60 per cent profits. If you’re a small or medium-sized firm and you’re in global competition, your margins are tiny, your profits are tiny and you’re very resistant to push[ing] up wages, because that literally could drive you out of business.

Add this all together and you’ve got a very, very strange world that we haven’t experienced before. One in which you’re going to have [structurally] low interest rates because there’s no inflation to combat. Then you’ve got a world in which labour markets [can have] full employment but it does nothing for wages, which means sustaining and perhaps making worse the inequalities that are already there. Then in product markets you have a winner-takes-all dynamic, whereby quasi-monopolists get monopoly rents and everybody else [gets to return to perfect] competition.

That seems, in a very abstract sense but in a very real sense, to characterise a world we haven’t been in before, and the consequences of thinking through that world are quite profound.


You also mentioned some of the big tech companies. As these tech giants spread they are using, basically, their quasi-monopoly power in one sector to muscle into another. In the United States there’s a discussion about what big-tech company is going to disrupt healthcare next year, because that’s a big share of GDP that is utterly inefficient in the United States. Market segmentations that used to shield or at least structure competition seem to be disappearing. At the same time you have the user-network effect, that gives these tech giants a big advantage to use these disappearing boundaries to go after all sorts of different market segments—or what used to be market segments. The inequality tendencies that are not least the result of this, are they likely to get worse before it gets better? Or what kind of policies do you think need to be implemented in order to address these issues?

Well, this is where Europe once again has disappointed, unfortunately. The whole point of [the General Data Protection Regulation] (GDPR) wasn’t about data protection. It was essentially scaring Facebook and Apple and the rest of them into paying some taxes—basically saying: ‘If every time that you switch on your platform you have to click through 12 screens of approval you know you’re going to lose 80 per cent of your users. Most of your business is data accumulation from your users.’ Particularly on the Amazon and Facebook side of things. ‘So you really need to wise up and play ball.’ It seems that, with the intervention of the Dutch and the Estonians and a few others who love tech, that’s gone by the wayside. We’re going to have some nominal taxation and they’re going to be able to continue doing what they want.

The truly damaging thing here with these companies is what they do to innovation. If you’re running a start-up company here—I was talking to someone yesterday about exactly this—the ambition for their company is to be annoying enough to be bought by Amazon. Then Amazon will do what they did in the 1930s with critical technology, such as beryllium and others at that point in time for steel. Which is you simply put them on the shelf and you don’t roll them out, because you don’t want the competition to ever [get an edge].

This is all market preservation and killing innovation by buying it and putting it on the shelf. This is exactly what monopolists do. Now, we’re meant to know what to do with this. It’s called bust them up. But there seems to be no political will to do this.


Why are there so many political parties?

Now, go back to the story about globalisation and how it emerged. The first thing neoliberalism did, in a sense, was to globalise labour markets and thereby render labour’s ability to command its share of national income obsolete. Then you have that product-market effect, and it [eats through product] markets. In a sense what happened was all of the little cartel structures, corporatism in Germany—let’s think product-market coalitions, all that sort of stuff, that kept the national economy insulated, all the little rules about who could buy your stocks on the stock market etc—all of that was stripped away.

Once all that was stripped away and everything really did go global, then you’ve got a question as to what happens to the political-party structures. Because what made all those little labour-market cartels and cushy arrangements possible, what made all those product markets safe for domestic companies and all the rest of it, were the political classes that mediated that post-war compromise—that were based everywhere on either a two-party system, Labour and Conservative, or a majoritarian coalition system of the type that you have in Germany.

Now you’ve destroyed the labour-market cartels. You’ve destroyed the product-market cartels. You’ve globalised everything. What’s the point of the existing parties? They don’t really have one. They were there to stabilise structures that no longer exist. Which is why they’re strangely clueless about what’s going on.


Mark Blyth had good news for the German SPD back in 2016. This is vintage Mark.

Well, the first thing that they should do, to quote—I think it was Planck, the physicist, that said this—‘Society evolves one funeral at a time.’ Let them die. I think you’ve got to start from scratch. When I had to give a speech at the SPD [Stiftung] in 2016 I said: ‘You are two electoral cycles from extinction.’ And I think I was exactly right. You might get three. But they’re dead. So there’s no point in trying to renovate something that’s dead.


What do you think will happen once populists are in government? Look at Italy right now.

Yes. This is the really interesting one. When the Italian thing came up I said: ‘Look, here’s your real problem. It’s not this government. It’s what happens when this government fails.’ Because at the end of the day what populism has going for it is the notion of sovereignty.

Chris Bickerton, a political scientist at Cambridge, had a really nice observation about this. There’s a book he did a few years ago called [European Integration: From Nation-States to Member States]. Sovereign states have their own printing press. They can devalue. They can default. They can do all these things. Once you join the euro you can’t. It’s off the table. Essentially, you enjoy the backing of the ECB, who will back your sovereign debt and thereby backstop your credit markets, so long as you play by the rules. Hence the importance of rules in the system.

But those rules really don’t work for large, consumption-based economies like France or in particular Italy. They work for the ones that can globalise their supply chains through eastern Europe, and then sell their stuff to the rest of the world and suck in demand from abroad. That’s Germany, the eastern Europeans and some of the north. So you have a real north-south split on this.

The populists come to power in Italy. They may even come to power in France. They’re going to find out unless they leave the euro there’s not much they can do. But if they leave the euro they will destroy probably somewhere in the region of 40 per cent of national savings while trying. That’s not a good option. So you’ve now got people in charge who said: ‘Screw them all. We will change everything.’ And they’re not going to change anything. What does that do to democracy and people’s faith in democracy?


And Blyth ends with:
My point is this: if you’re waiting for a bunch of superannuated, septuagenarian social democrats to save your arse start looking elsewhere.
full post here

1/02/2019

Brexit: the great disappointment

"the "European project" has only ever had one real agenda underpinning everything it does.
This is a desire to integrate the countries of Europe so closely under a new system of government centralised in Brussels that it would be extremely difficult for any country to leave it."

Cross-posted from EUReferendum.com.

Booker has dedicated his last column of the year to Brexit matters, with the heading: "Europe's 'great deception' fooled our politicians for decades. Next up, the great disappointment...".

As we move on from enjoying our last pre-Brexit Christmas to thoughts of the year ahead, he writes, only one prediction can be made with absolute confidence: that the national mood next Christmas may not be quite so merry.

From there, he has managed to circumvent the usual Telegraph ban on mentioning my name by the device of referring to our book. Booker regards it as one of his most significant moments in the 27 years he has spent seriously reporting for The Telegraph on the EU and its impact on British life.

This, of course, is The Great Deception and, says Booker, it brought to light the true origins of the EU, as well as many long-hidden details of its history.

Writing this 600-plus page book was certainly an experience and far from being value-free. What we found in the process of writing convinced us of one unavoidable conclusion: that one day we would have to leave the EU.

The reason Booker has decided to mention it now is because some aspects of our research has particular relevance to where we find ourselves today. The first is that, to a much greater extent than is generally realised, the "European project" has only ever had one real agenda underpinning everything it does.

This is a desire to integrate the countries of Europe so closely under a new system of government centralised in Brussels that it would be extremely difficult for any country to leave it.

The reality of this is something a lot of people have difficulty coming to terms with, choosing to believe that what is now the EU is simply a benign trading bloc. Conservatives in particular have their own variation on this myth.

Many believe that the EEC started off as a nice cuddly trading agreement but somehow went off the rails and became "political" as continental politicians decided to exploit it in order to pursue a centuries-old ambition to unite Europe.

That this is a false picture is borne out by our research, which led to the title of our book. The original "great deception" stemmed from a deliberate decision by Jean Monnet and his "co-conspirators" including former Belgian prime minister Paul-Henri Spaak.

Their action came after the successful creation of the Coal and Steel Community when Monnet's ambition over-rode his natural caution and he pushed for a full-blown European Political Community (EPC) with its own constitution and its own European army.

full article here

Either JC Juncker was drunk, lives in a parallel universe, or was trying to inject humour into the disaster of the euro.


via Eurozone Dystopia: Groupthink and Denial on a Grand Scale.

The G7 is clearly dragged down by the Eurozone members (France, Germany, and Italy, and they with the exception of Italy, they were among the strongest performers within the Eurozone.

The next graph shows the employment growth performance.

full post here

10/30/2018

Europe has no morals, no ethics no nothing

Cross-posted from Global Research

Khashoggi versus 50,000 Slaughtered Yemeni Children

by Peter Koenig

The European Parliament has asked yesterday (25 October) for an immediate embargo on the sale of weapons to Saudi Arabia, hence sanctioning the Kingdom of rogue Saudi Arabia which is joining the United States and Israel as the main purveyor of crime throughout the Middle East and the world. France still said they will apply sanctions only if it is proven that Riyadh was indeed involved in the killing of the controversial Saudi journalist. Madame Merkel at least days ago said that Germany would no longer supply the Saudis with arms – as a result of the heinous crime committed on Jamal Khashoggi.
No doubt, it was a horrible murder that took place in the Saudi Consulate in Istanbul, with Jamal Khashoggi’s body possibly sawed to pieces, and according to latest accounts, buried in the Consulate’s backyard. And all that now admitted, executed by order of Riyadh. To soften the blow, for business purposes, some European countries would like to argue that it may not have been a premeditated assassination, but possibly a mortal “accident”, which would of course change the premises and lessen the punishment – and weapon sales could continue. It’s all business anyway.
Europe has no morals, no ethics no nothing. Europe, represented by Brussels, and in Brussels by the non-elected European Commission (EC), for all practical purposes is a mere nest of worms, or translated into humans, a nest of white-collar criminals, politicians, business people and largely a brainwashed populace of nearly 500 million. There are some exceptions within the population and fortunately their pool of ‘awakened’ is gently growing.
Even Switzerland, a neutral country according to her Constitution, not a member of the EU, but a staunch adherent to the (non-) European Union through more than 110 bi-and multilateral contracts, it was revealed yesterday, is assisting in Saudi Arabia converting the Swiss built (civilian) Pilatus helicopter into a ferocious war machine. Pilatus has always had that reputation of its controversial convertibility and was particularly known within Switzerland for that reason – but now, they surpass the limit of the tolerable, by helping the criminal and warmonger Saudis to mount a flying war machine in their, the Saudi’s, country – totally against Swiss law and against the Swiss Constitution, but fully tolerated by the Swiss Government.
Back to the real issue: It took the horrendous murder of a famous Saudi-critical and Saudi-national journalist, for the Europeans to react – and that, mind you, grudgingly. They’d rather follow Donald Trump’s line, why lose 110 billion dollars-worth of arms sales to the Saudis, for the murder of a journalist. – After all, business is business. Everything else is a farce.
For three and half years, the Saudi’s have waged a horrendous war on Yemen. They have slaughtered tens of thousands of Yemenis – according to the UN Human Rights Commission more than 50,000 children died by Saudi air raids with UK supplied bombs, and US supplied war planes – through lack of sanitation and drinking water induced diseases, like cholera – and an even worse crime, through extreme famine, the worst famine in recent history – as per UNICEF / WHO – imposed by force, as the Saudi’s with the consent of the European allies closed down all ports of entry, including the moist important Red Sea Port of Hodeida.
The European, along with the US, have been more than complicit in this crime against humanity – in these horrendous war crimes. Imagine one day a Nuremberg-type Court against war crimes committed in the last 70 years, not one of the western leaders, still alive, would be spared. That’s what we – in the west – have become. A nest of war criminals – war criminals for sheer greed. They invented a neoliberal, everything goes market doctrine system, where no rules no ethics no morals count – just money, profit and more profit. Any method of maximizing profit – war and war industry – is good and accepted. And the  west with its fiat money made of hot air, is imposing this nefarious, destructive system everywhere, by force and regime change if voluntary acceptance is not in the cards.
And we, the people, have become complicit in it, as we are living in luxury and comfort, and couldn’t care less what our leaders (sic-sic) are doing to the rest of the world, to the so-called lesser humans, who live in squalor as refugees, their homes and towns destroyed, bombed to ashes, no schools, no hospitals, and to a large extent no food – yes about 70 million-plus refugees are everyday on the move, most of them from the west-destroyed Middle-East. Why should we worry? We live well. To the contrary, these refugees they could steal our jobs. Let them not invade our luxury havens. Rather keep bombing their countries into rubble.
Yemen, strategically highly sought-for, should, of course, not be governed by the Houthis, a socialist-leaning group of revolutionary Muslims which is part of the Shia Zaidi, a branch of the Shia Imamiya of Iran. They finally became sick and tired of the decades-long Washington manipulation of their government. And who better than the stooges of Saudi Arabia to do the dirty job for Washington? – And, yes, they don’t have to do it alone. Weapon supplies come from all over Europe, mainly the UK, and France, also Spain, and for a while also from Germany – and well, neutral Switzerland.
No matter that tens of thousands of children are killed, that according to the Human Rights Commission, up to 22 million Yemenis (out of about 30 million population), are in danger of severe famine, and that includes at least 8 million children – children who have for the most part no more access to schools, health services and food – an entire generation or more without education, a well-planned and premeditated gap in society, as is the case in Syria, Iraq and Afghanistan. By killing and depriving children of basic needs, the west is creating a widening gap of educated people, of people that can and would otherwise fight for their countries, for their societies. But – they are gone. That makes it so much easier for the west just to take over – their strategic position, their natural resources and suck empty the social safety funds accumulated by their labor force.
Isn’t that a thought for the illustrious populace who live in western luxury, to lean back in their fauteuils and think about? – What if, one day the tables are reversed – and we, the west would face justice? – Is anybody in the west bold and realistic enough to see such a picture? – And as we see these days – history is advancing in giant steps. It’s the 21stCentury – Artificial Intelligence (AI) has more than made inroads in our society. And what if – if those that we consider inferior and our enemies, are in fact a few steps ahead of us in AI science – and could reverse the picture rather rapidly?
And while we wonder why Saudi-slaughtered Yemenis does not raise a fuss in the western media, but the Saudi killing of a journalist does, all-the-while our linear IMF provided projections increase western GDP by fantastic numbers by 2030, irrespective of the 20% unemployment thanks to AI, that some predict – all these contradictory figures are unimportant, while we can make a killing from killing Yemeni children. But it takes the Khashoggi killing that might stop – if only temporarily, and if only we are lucky – the Saudi war machine. The population of Yemen is unimportant. Why?
Why does it take the assassination of a journalist – granted, a horrendous and grisly murder by his own country’s government – no matter how controversial Jamal Khashoggi was, he has been writing for our western MSM, for the truth tellers, such as the Washington post and the NYTimes. That may have helped making him more important than 50,000 slaughtered and maimed Yemeni children – more important in the sense that only through his abject murder, the European – maybe – will react and ‘sanction’ the Saudis.
But even that is not sure – as the Transatlantic Master Trump, has many trumps up his sleeve, that he may offer or coerce the EU puppets into following his heinous example and spare Riyadh from any punishment, especially as far as weapons are concerned. After all its business. Dead children are just that, dead Yemenis, a generation less to worry about.
Peter Koenig is an economist and geopolitical analyst. He is also a water resources and environmental specialist. He worked for over 30 years with the World Bank and the World Health Organization around the world in the fields of environment and water. He lectures at universities in the US, Europe and South America. He writes regularly for Global Research; ICH; RT; Sputnik; PressTV; The 21st Century; TeleSUR; The Vineyard of The Saker Blog, the New Eastern Outlook (NEO); and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe. He is also a co-author of The World Order and Revolution! – Essays from the Resistance.
Peter Koenig is a Research Associate of the Centre for Research on Globalization.

7/11/2018

FAZ explains the Target2 bomb and it's going to kill ze Germans

Fasten your seat belts. Here comes the economics department of the FAZ IYIs.

TARGET BALANCES: Germany is sitting on a bomb

BY MANFRED SCHÄFERS , BERLIN- UPDATED ON 07.07.2018 - 19:11
"Target" - this was actually a technical system for processing payments in the euro area. But now Germany has paid almost 1 trillion euros too much. Money that could never come back.
Oh those Germans, what have they done to Target2? In the beginning it was sort of a giant Paypal based on euros. Then the Germans showed up and deposited "almost 1 trillion euros too much".

As everyone knows when you deposit funds into your own account, chances could be it "never comes back". Yeah, makes sense.

The Political Representation of the European People

By Etienne Balibar, Emeritus Professor at Paris X Nanterre and Anniversary Chair of Modern European Philosophy at Kingston University, London. He has addressed such questions as European racism, the notion of the border, whether a European citizenship is possible or desirable, violence, identity and emancipation. His books include Reading Capital (with Louis Althusser, New Left Books 1970), Race, Nation, Class (with Immanuel Wallerstein, Verso, 1991), The Philosophy of Marx, Spinoza and Politics, Politics and the Other Scene (Verso, 2002), and We, the People of Europe? Reflections on Transnational Citizenship (Princeton UP, 2004). Originally published at openDemocracy
English version of the political philosopher’s interview with Vadim Kamenka of L’Humanite Dimanche (21 June)and Ana Maria Merlo for Il Manifesto (15 June).
IM/HD: We are today witnessing the advance of nationalist, xenophobic and extreme-right groups in every successive European election. They have even managed to enter government, for instance, in Italy. What’s going on?
Etienne Balibar (EB):This trend has been ongoing for years and reveals a crisis in the current form of European construction, which is probably irreversible. It is moving from one country to another, but the formula is the same: the effects of austerity measures on the poor and middle classes as well as the development of social and territorial inequalities are the logical result of so-called free and undistorted competition. These elements crystallise within the malaise created by the technocratic government of the EU and its member states. They foster nationalism, xenophobia and a loathing for democracy.
But ever since the Greek crisis and Brexit, it has also become clear that it is neither possible to leave the EU, nor to expel a member state. Obviously, some political forces believe in an exit from Europe, but no government can impose it. I think the situation will further deteriorate as we head towards a mutual neutralisation of hegemonic forces in Europe due to the lack of an alternative project on the part of new individuals, emergent groups or political movements. The consequences of this development are unpredictable.
IM/HD: Will we see an EU showdown with Italy, similar to the one in 2015?
EB:The statements of the president of the EU Commission, Jean-Claude Juncker, are revealing. He has said that he wanted to avoid the errors made in 2015. But what errors is he referring to? Is he talking about the content, about the wilful destruction of an economy and a society? Or is he merely talking about the form this took, which hadn’t respected the procedures? The European leaders know that they cannot show the same open contempt towards the choice made by the Italians with which they treated that of the Greeks. But I do find it telling that they want to avoid a conflict with the extreme-right while they deliberately sought it with the left-wing government.
IM/HD:Do the suggestions for an overhaul of Europe put forward by French president Emmanuel Macron during his speech at the Sorbonne or the plans laid out by German Chancellor Angela Merkel really take into account the full extent of the crisis that Europe is undergoing?
EB: What plan? It’s mere window dressing. Of course cultural exchanges are important. But it won’t take us very far if it’s only to proclaim once again the common destiny of the European peoples. The crux of the matter is the EU economic and financial structures. Banks have already been consolidated. The project to transform the European solidarity mechanism into a monetary fund was inspired by the rules of the IMF. And Germany and the Netherlands still don’t accept a common budget without guarantees against transfers.
Ever since the crisis of 2008, economists have repeatedly said that a single currency cannot work without a common budget. But Germany only accepts minor adjustments, and it is likely that the French government will head in the same direction. This will seal the sovereignty of financial institutions instead of limiting competition between European states and producers and thereby strengthening solidarity.
The project that is here outlined certainly doesn’t attempt to ward off the splitting of Europe into hierarchical economic zones: attractive zones for foreign capital, subcontracting zones, zones for the supply of a cheap workforce and holiday zones for the bourgeoisie and petty bourgeoisie. What happens in Greece today is striking. The salaries and pensions have collapsed, current accounts are picking up, and the tourism industry is running at full capacity. The environmental and sociological consequences are terrifying.
More at Naked Capitalism

7/08/2018

"The European Union has always been sold, to its citizens, on a practical basis: Cheaper products. Easier travel. Prosperity and security."

"But its founding leaders had something larger in mind. They conceived it as a radical experiment to transcend the nation-state, whose core ideas of race-based identity and zero-sum competition had brought disaster twice in the space of a generation."

The NYT has an article

Why Europe Could Melt Down Over a Simple Question of Borders

"France’s foreign minister, announcing the bloc’s precursor in 1949, called it “a great experiment” that would put “an end to war” and guarantee “an eternal peace.”
...
“The keen feeling of national identity must be considered a real barrier to European integration,” Mr. Lange wrote in an essay that became a foundational European Union text.

But instead of overcoming that barrier, European leaders pretended it didn’t exist. More damning, they entirely avoided mentioning what Europeans would need to give up: a degree of their deeply felt national identities and hard-won national sovereignty.
...
“The keen feeling of national identity must be considered a real barrier to European integration,” Norway’s foreign minister, Halvard M. Lange, once wrote."


Top-rated comments
"It's one thing to merge with other countries in Europe.
It's another to feel like one is merging with the Middle East or Africa. the EU was not supposed to be about that."
and
"It is one thing for a nation like Germany to share a common market and porous border with Luxembourg or Belgium. It is quite another to share one de facto with Syria and Chad."

A monetary union cannot work without also being a political union

Nicholas Kaldor prescient in 1971:
"… Some day the nations of Europe may be ready to merge their national identities and create a new European Union – the United States of Europe. If and when they do, a European Government will take over all the functions which the Federal government now provides in the U.S., or in Canada or Australia. This will involve the creation of a “full economic and monetary union”. But it is a dangerous error to believe that monetary and economic union can precede a political union or that it will act (in the words of the Werner report) “as a leaven for the evolvement of a political union which in the long run it will in any case be unable to do without”. For if the creation of a monetary union and Community control over national budgets generates pressures which lead to a breakdown of the whole system it will prevent the development of a political union, not promote it."
[italics in original]

Wynne Godley in 1992:
"If a country or region has no power to devalue, and if it is not the beneficiary of a system of fiscal equalisation, then there is nothing to stop it suffering a process of cumulative and terminal decline leading, in the end, to emigration as the only alternative to poverty or starvation. I sympathise with the position of those (like Margaret Thatcher) who, faced with the loss of sovereignty, wish to get off the EMU train altogether. I also sympathise with those who seek integration under the jurisdiction of some kind of federal constitution with a federal budget very much larger than that of the Community budget. What I find totally baffling is the position of those who are aiming for economic and monetary union without the creation of new political institutions (apart from a new central bank), and who raise their hands in horror at the words ‘federal’ or ‘federalism’. This is the position currently adopted by the Government and by most of those who take part in the public discussion."

Lars P. Syll in 2018:
"There would, of course, be huge problems of turning the European Union into a kind of United States of Europe. And when the peoples of Europe are asked about the prospect, a clear majority says no.
Turning the eurozone into a political-fiscal union would give a couple of countries — especially Germany — the power to more or less dictate earlier sovereign countries’ taxes and spendings.
The peoples of Europe do not want to deprive themselves of economic and political autonomy. They do not want to be enforced to lower wages and slash social welfare at the slightest sign of economic distress. Increasing income inequality and a federal überstate is not the stuff that our dreams are made of."

7/05/2018

The Federal Rep. of Germany is seeking: Transit Resort Human Resources Managers cum SSupervisor

Job Offer

The Government of the Federal Rep. of Germany is seeking:

Transit Resort Human Resources Managers cum SSupervisor

Expected skills:
  • Strong people skills,
  • Advanced concentration capabilities, also to be applied on human resources lounging in concentrated environ,
  • Excellent visual acuity particularly trained on tourists dressed in pleasing vertically-striped suits,
  • Physically and emotionally demanding working environment with often strong-willed tourists,
  • You are action-packed and short-fuse decisioned,
  • Immunity to sexually attractive tourists and/or advances by them,
  • Kick-ass approach on all occasions,
  • You show convincing tactile proficiency,
  • Basic interlocutory capabilities, less is more,
  • Highly developed olfactory tolerance level and cultural indifference,
  • Diploma in German Leitkultur a definite plus.
Transit Resorts are located in the province of Bavaria populated by rather sullen indigenous people speaking a strange dialect. Applicants need to be prepared to face impromptu exchanges with former colony to the South.

Tazer training provided plus pabulum and generously stocked bar with indigenous spirits. You've been warned.

Please note: ONLY the BEST need to apply!

If you feel you have got what it takes, please contact VBFL (Völkisches Büro für Flüchtlingslösung) next to Chancellory in Berlin. STILLGESTANDEN!

6/02/2018

Reading Lounge

1. You are on an emergency room! Hey, how about an ad?

2. Economy with l'eggs

3. Dark books

4. Econink

5. Euro Tragedy

6. Fatal flaws - GerFrance was and is running a vendor finance scam on the back of the Euro

6/01/2018

Italy’s crisis: Wouldn’t it be simpler if the government simply dissolved the people and elected another?

That would be an option, or an Acropolis-like visit of Mutti that the Greeks had the privilege to visualize. Life has gotten tougher in the EU with this Italian Job and to spice it up even more, Spain has lost its Leader yesterday.

Add to that the tariffs Trumble in the Jungle coupled with Schauble's, no wait, Olaf Scholz's Black Zero and the Eurozone again is a bastion of stability and powerfully united to hike up the tariff on Bourbon and California bath salts. Take that, America.

Here is a good article about democracy in a union under the ceptre of ze Germans.

The decision of Italy’s President, Sergio Mattarella, to veto the appointment of Paolo Savona as Italian finance minister has sent the country into a political crisis. Bob Hancké argues that although Mattarella was legally within his rights to do what he did, his actions not only raise questions about democratic legitimacy, but are almost certainly not in Italy’s long-term interests.
On Sunday, the Italian President, unhappy with the finance minister that the almost new Italian government proposed, decided to blow up the democratic process rather than accept the outcome of the March election. Just to be absolutely clear: President Mattarella was well within his rights to do what he did – it is the constitutional duty of the President to protect Italy’s wider interests. And some of the policies, economic and otherwise, of the populist coalition between the Lega and M5S, as well as the main characters in the story, do not and did not inspire confidence.
But there are two problems with President Mattarella’s actions. The first is that it is never a good thing in a democracy if an indirectly elected politician throws out the plans of directly elected politicians. Whatever we may think about the almost-new-coalition-government, they had a more or less coherent programme and a functioning majority – or better, perhaps. Neither were any worse than most of the forty-six post-war Italian governments, and definitely less lugubrious than the Berlusconi administrations of the past 25 years. And it shows little political sense to put hope in the Italian people to elect a different government in five months’ time, after a government of technocrats will have imposed more austerity to calm financial markets.
Full article here.