EURO/EUROPE/ THE SO CALLED "UNION" - The elephant in the room is losing it's grip on the ceiling light flex? Stand by for the mass stampede through doors and windows and walls. The IMF is as informed as manuel as to the whole picture, the truth is nobody can know the extent of the desolation bankers and financial whizzkids have visited upon us and anyone who can be convinced otherwise has little appreciation of the shortcomings of human nature. It's likely that from top to bottom they were all behaving with the mindset of the shoplifters during the riots, driven mad in their bonus rush, many also under the influence of cocaine? ... Over four years some of the known truth has been drip fed out, it's rumsfeldt's unknown unknowns (as it were) that will lock in the longest depression yet, as we especially seem stuck with the present establishment using the austerity argument totally dishonestly for dogmatic gains and repression....ECB President Mario Draghi has staged a dramatic power-play, in what could be a game-changer for Europe, argues Simone Foxman in Business Insider. Foxman explains that Draghi set forth criteria that EU political leaders must abide by in order to receive aid, while at the same time promising that EU countries like Spain and Italy won't fail in the short term.In other words, he sent the following message: "If you do that, then I will do this."This is a a divergence from earlier policy, which was unpredictable and reactive. For the first time, the ECB really is saying that it will make reducing sovereign borrowing costs (at leat at the short end) a matter of clear policy. She says this won't necessarily be good for markets, as Draghi has essentially said he will push EU leaders to the brink before he does anything. But, she argues, that the announcements should help restore confidence in the eurozone. However, in the real economy, Draghi's promises to act are invaluable. It could give investors faith enough to invest in the real economy because the ECB's long-term promises are clear, despite continued volatility in the markets.
Access Investments-Building Awareness - European Union-ROMANIA
Monday, August 6, 2012
EUROPE - SOME "UNION" THERE IS ....only smoke and mirrors
EURO/EUROPE/ THE SO CALLED "UNION" - The elephant in the room is losing it's grip on the ceiling light flex? Stand by for the mass stampede through doors and windows and walls. The IMF is as informed as manuel as to the whole picture, the truth is nobody can know the extent of the desolation bankers and financial whizzkids have visited upon us and anyone who can be convinced otherwise has little appreciation of the shortcomings of human nature. It's likely that from top to bottom they were all behaving with the mindset of the shoplifters during the riots, driven mad in their bonus rush, many also under the influence of cocaine? ... Over four years some of the known truth has been drip fed out, it's rumsfeldt's unknown unknowns (as it were) that will lock in the longest depression yet, as we especially seem stuck with the present establishment using the austerity argument totally dishonestly for dogmatic gains and repression....ECB President Mario Draghi has staged a dramatic power-play, in what could be a game-changer for Europe, argues Simone Foxman in Business Insider. Foxman explains that Draghi set forth criteria that EU political leaders must abide by in order to receive aid, while at the same time promising that EU countries like Spain and Italy won't fail in the short term.In other words, he sent the following message: "If you do that, then I will do this."This is a a divergence from earlier policy, which was unpredictable and reactive. For the first time, the ECB really is saying that it will make reducing sovereign borrowing costs (at leat at the short end) a matter of clear policy. She says this won't necessarily be good for markets, as Draghi has essentially said he will push EU leaders to the brink before he does anything. But, she argues, that the announcements should help restore confidence in the eurozone. However, in the real economy, Draghi's promises to act are invaluable. It could give investors faith enough to invest in the real economy because the ECB's long-term promises are clear, despite continued volatility in the markets.
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While big business/finance can pervert the cause of democratic government and economic policy, then the current policies are not likely to change. Especially when those old economic ideologues still hold power, nothing is going to change. Face the facts, few, if any economists, politicians, and big business folks will admit that their economic policies and remedies helped cause the financial crash, and are not helping with any recovery. Quite simply if they did so they would have to stand down from their positions of power and influence, and that would affect their earnings, status, and long term future. So the simple solution is to divert the blame to most of the working, (or not any more in some cases), population, and mismanaged government, using lots of economic jargon and slick PR. Curious then how almost none of them foresaw the financial crash, or were warning about it with those very same criticisms. All in all, it doesn't inspire much confidence.
Third, the economic impact of cutting debt will be massive because a multiplier effect occurs when spending is reduced.
Correct and I for one, blanche at the herculian task of paying off the massive debt accumulated in the private sector. It is double the size of debt to GDP ratio accumulated in WW2 (200%), and the only path on offer by our poltical parties is more work for less pay. That is, it will be our productivity that pays of this debt.
Of course it does not have to be this way. And it is stupid to rely on an external factor that we have no control over (price of oil) to get us out this mess. We need a plan, a big plan, similar in scope and co-operation with which the UK went to war in the 1930's. We need to restructure the private sector debt, we need to reform the financial sector and we need our government to make full employment its top priority.
We went through the biggest debt bubble in human history. The governments mentioned above all tried to address this with even more debt. Canada, for example, stoked an enormous housing bubble and took personal and household debt to record levels to spur growth in the country. But all this has done is box people in and restrict them even further in their ability to compete in the 21st century economy.
The future is now going to belong to the solvent and the debt-free. They will be the nimble people who will be able to dart around the world and make the most of opportunities. The losers, people who are too broke to afford a plane ticket or stuck in negative equity mortgages, are going to be the people who will get poorer and poorer year after year. I guess they can console themselves with the flourishing betting services out there or a tub of cut-price, oil-based ice cream from Aldi or a giant-size bottle of high-strength cider. Life does give us some blessings...
Another demonstration of French "solidarity". It wants Italy to get on its knees and beg so that France doesn't come into the firing line. As the saying goes, with "friends" like that, who needs enemies. There was a Portuguese poster who was claiming that France was a friend to the southern countries - I hope he has now disavowed himself of that notion.
As for Europe ripping itself apart because of the crisis - nonsense. It was NEVER one united whole all along, will the world at large finally realise that a handful of self-serving European politicians were engaging in one of the biggest con tricks of all time. The only people who were "united" in Europe were those belonging to the political and financial elite, solidifying their power and turning the plebs into tax slaves. The crisis is merely showing how little real power the European elite have.
If it's all about confidence: just read on a Dutch financial website that Shell is only keeping money in Europe for its operating costs, preferring to keep the bulk of its readies (and it's got a few) outside of the eurozone.
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