Germany and France are heading towards financial problems, but as yet these are
not as serious as the problems in Italy, Spain, Portugal, not forgetting Eire,
and of course Greece, along with a few others. At the behest of the EU, but
mainly Merkel pretty well every country in the euro zone have been forced to
apply austerity measures, shed jobs, and make things so tight that many
businesses have closed down. Add to this that in almost every euro zone country
personnel, and business taxes have risen dramatically, along with ever
increasing fuel bills. Not surprisingly the this means that the working public,
assuming people still have a job, just do not have the money to buy in some
cases not even basic food, and certainly not new cars, TV’s, fridges etc., etc.
When you drive most Europeans down to near poverty levels there is no way they
will spend. Even the pensioners, who had money to invest, can now only get a
meager return on investments, because of the very low interest rates. Against
this background it is not surprising that sales of both products and services
are in serious decline. For me the question is, why did we get to this state of
affairs? The answer is to try and keep the euro alive. For me this is the root
problem all across Europe. If you look at Europe as a whole we have many
different and divergent economy bases, some based on manufacturing, and some
based on tourism, with many others. To expect each and every one of these very
different economy bases to be able to hold the value of the euro to within such
very tight limits is just not practical. To turn their economies round, what
most of Europe needs is not increased borrowing leading to unsustainable debt,
but growth and increased tax revenue, and this can only comes from creating a
climate of stimulating higher employment levels, and investment in business by
lower taxes, on both people and business. Most of the euro zone countries need
to devalue their currency to create this climate for growth, but the single
currency prevents this, which leads to the inevitable conclusion that the euro
is in fact a dead duck.
Access Investments-Building Awareness - European Union-ROMANIA
Friday, August 10, 2012
Germany and France are heading towards financial problems, but as yet these are
not as serious as the problems in Italy, Spain, Portugal, not forgetting Eire,
and of course Greece, along with a few others. At the behest of the EU, but
mainly Merkel pretty well every country in the euro zone have been forced to
apply austerity measures, shed jobs, and make things so tight that many
businesses have closed down. Add to this that in almost every euro zone country
personnel, and business taxes have risen dramatically, along with ever
increasing fuel bills. Not surprisingly the this means that the working public,
assuming people still have a job, just do not have the money to buy in some
cases not even basic food, and certainly not new cars, TV’s, fridges etc., etc.
When you drive most Europeans down to near poverty levels there is no way they
will spend. Even the pensioners, who had money to invest, can now only get a
meager return on investments, because of the very low interest rates. Against
this background it is not surprising that sales of both products and services
are in serious decline. For me the question is, why did we get to this state of
affairs? The answer is to try and keep the euro alive. For me this is the root
problem all across Europe. If you look at Europe as a whole we have many
different and divergent economy bases, some based on manufacturing, and some
based on tourism, with many others. To expect each and every one of these very
different economy bases to be able to hold the value of the euro to within such
very tight limits is just not practical. To turn their economies round, what
most of Europe needs is not increased borrowing leading to unsustainable debt,
but growth and increased tax revenue, and this can only comes from creating a
climate of stimulating higher employment levels, and investment in business by
lower taxes, on both people and business. Most of the euro zone countries need
to devalue their currency to create this climate for growth, but the single
currency prevents this, which leads to the inevitable conclusion that the euro
is in fact a dead duck.
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rom debt crisis to food crisis. The UN's food agency has warned today that the world could face a food crisis like that of 2007/08 if countries restruct exports on concerns about a drought-fuelled grain price rally.
In its latest update, the Food and Agriculture Organisation said its food price index climbed 6pc last month, after three months of decline, driven by a surge in grain and sugar prices.
Anxieties over extreme hot and dry weather in the US Midwest sent corn and soybean prices to record highs last month, driving overall food prices higher.
Grain markets have also been boosted recently by speculation that Black Sea grain producers, particularly Russia, might impose export restrictions after a drought there hit crops.
The FAO's senior economist and grain analyst Abdolreza Abbassian told Reuters:
There is an expectation that this time around we will not pursue bad policies and intervene in the market by restrictions, and if that doesn't happen we will not see such a serious situation as 2007/08. But if those policies get repeated, anything is possible.
As expected the Conseil Constitutionnel decided that the adoption of the ESM does not require an amendment of the French constitution. Did anyone really believe anything else? The court consists of "career jurists and former politicians"? I mean do turkeys vote for Christmas?
No, the one game in town (pace the Olympics) is the Old Maid. No one wants to be left with the responsibility for the dissolution of the eurozone. Therefore every decision now is just to delay until the 12 Septmeber when the German Verfassungsgericht will reveal its judgement. The Karlsruhe Court probably had hoped that at least Greece would have been excommunicated from the Holy Euro by then, but it does not look like that will happen now. So. very likely the Verfassungsgericht will delay its decsion and the game will go on....and so ensure that the explosion once it comes will be much more destructive than it would have needed to be.
As for Germany digging itself even deeper into this pit, well I suppose the diabolical could outnumber the virtuous in the way they did in GB to see us emasculated but it won't save Europe. It will just destroy Germany which I suppose is what they really want.
"the French constitutional court is meeting today to decide if adopting the European fiscal pact requires an amendment to France's constitution."
Now, forgive my misunderstanding of the whole EU "thing", but doesn't any member of the EU, voluntarily mind you, surrender its sovereignty to said EU to become a member? Does that not make "French constitutional court" an obsolete term? Are they not compelled by treaty to acquiesce to any decision made by the collective?
Hmm?
Five years ago today BNP Paribas announced large losses on special investment vehicles invested in US sub prime mortgages and the European Central Bank pumped €95bn (£75.4bn) into the financial system to support banks. The Dow Jones crashed 387 points and what seemed an unprecedented day's events simply gave way to a financial crisis that has spanned two Olympic Games, about to witness its second US Presidential election and added a whole lixicon of terms to regular usage from credit default swaps to quantitative easing.
My own take is that while the response of regulators and politicians to the crisis has been largely poor, business has adapted remarkably well although the one common thread that remains is a lack of confidence which began to disappear on this day in 2007 and has not returned.
Europe's largest economy has warned that the prospect of global economic recovery is "fragile". Germany's economy ministry said in a statement that the prospect of the economy growing faster in the second half of the year was fading. It added:
Hopes that the global economy would revive quickly after moderate growth in the winter months are proving premature amid a renewed worsening of the bank and debt crisis.
Europe's largest economy has warned that the prospect of global economic recovery is "fragile". Germany's economy ministry said in a statement that the prospect of the economy growing faster in the second half of the year was fading. It added:
Hopes that the global economy would revive quickly after moderate growth in the winter months are proving premature amid a renewed worsening of the bank and debt crisis.
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