July 14, 2016
The British had a disaster in its political life. Although the leaving of the EU is the most traumatic and in my mind stupid decision, the respect for democratic choice should be honoured with more than an afterthought. There should be an examination of the vote and the lies told to the electorate and at some stage in the not too distant future, the nature of the decision should be revealed. For example: votes cast in PENCIL could be subject to doubt; inadequate margin for a constitutional change (a Brexit campaigner started a petition to ensure that REMAIN did not win by the narrow margin LEAVE won by, and 4.1 million signatures indicated dissatisfaction with the “result” being such a slender margin, and a decisive victory for REMAIN in Scotland brings the unity of the UK into question); complete falsehoods being told to the voting public; a committed campaign of anti-immigration propaganda; the departure of all the LEAVE campaigners including the laziest and most absurd politician in history, Nigel Farage.
No, the disaster is the one that has just ended. The era of David Cameron and George Osborne; the blaming of the previous more successful administration for anything that was wrong for the first five years of Cameron’s reign, followed by a year of bullying and condescending humour at the Ballot box during weekly self-congratulatory PMQs, an opposition that has become neurotic about the choice of leader by its grassroots.
We welcome Theresa May’s new administration with trepidation and justifiable fear. Anything is better than being lied to, but it is the sacking of the old school tie, the removal so far of the worst front bench under David Cameron that is to be celebrated: Michael Gove, George Osborne, Nicky Morgan, Jeremy Hunt, Micheal Whittingdale: ALL GONE.
Let us hope that Boris can grow up and apologise to the British for his lies. Let’s hope he can start to realise that our relationships with other countries matter. I have a sneaking suspicion that he has been with May all along, sick and tired of the antics of the previous administration that factually can be blamed for causing the near breakup of the United Kingdom.
February 27, 2013
Twenty five percent of the vote in Italy went to a party that want an exit from the EU and a return of the Lira. The Monetary Madness continues apace. When a country could inflate away its debts and then revalue again after it had cleared its path back to being an attractive place to spread into some of ones’ investment risks. As part of a common currency they can not con each other in this way – they have to borrow to cover the shortfalls that stem from corruption in the political class. Italy has rejected austerity but the 25% is not a protest vote. It is a game changer. It is a kick in the face of the EU. It may be fatal.
However, if the PIGS were to leave the EU, they could form their own trading bloc – one hopes they call it SPIG rather than PIGS or GIPS or the less pronounceable IGPS – they would then be able to inflate their way out of their primary problem, together. And then they could then rejoin the EU as a block and create economic treaty zones, consider an example set of economic zones:
- Central EU (Germany, France, Belgium, Luxembourg),
- South EU (SPIG),
- Eastern EU (on or adjoining the Eastern border),
- Northern EU (Scandinavia, Denmark, Holland, UK)
Each part of the EU has an exchange rate balancer, so if they want to devalue, they can by negotiating revaluation elsewhere. The four zones have floating exchange rate mechanisms with each other relative to capital value. So any shift of liquidity between the zones has its economic effect.
Monetary conditions are created by a mechanism like the trading of bonds (not cash) between the Super Governments – here are a group of talented long range analysts can set the degree of valuation (this model may in effect be five currencies), the democratically preferred flavour of financial control and regulation levels that at least disallow fantastic risks with people’s pensions that maybe once paid off but now wear away at value. Perhaps Super Governments have no other function.
Each bloc contributes to a common currency pool and sells bonds to it to maintain an economic state of relativity. However something like that may or may not work it should be understood that the awareness of very different political system is required.
Europe without a central federal body probably leads to too many demands for regulation being imposed in the wrong markets as well as the more significant, in body count at least, the absence of regulations that would have prevented disasters evaporating vast tracts of wealth in an instant. Such an ephemeral quality wealth can turn out to be. Protecting it irrationally may backfire.
The central purpose is to introduce long range capital increases where they are needed. The absence of any Government led stimulus or infrastructure corrections that long range planning needs to consider in its calculation of growth. You can squeeze an orange once, but a healthy tree means more future oranges and you better have the infrastructure to squeeze them.
“a far less great Britain struggling with a mere percentage of its economy left yet more people to employ and an inability of the state to collect fair taxes”
The apparent Tory creed of demanding tax fairness, while protecting the tax avoiders who support them, will seem shallow as the record shows a far less great Britain struggling with a mere percentage of its economy left yet more people to employ and an inability of the state to collect fair taxes means it stubbornly refuses to finance progress. Italy may serve to push the EU into progress and reform the lumbering beast.
November 24, 2009
When the head of the IMF speaks, the bankers sit up and listen. But is his advice going to be any more accurate than anyone else’s?
It is hard to continue to mount up the debts investing in stability when jobs replacing all those that have vanished from the economy seem to fail to appear again anywhere else.
Governments may not recognise it is not just stability of the institutions that exchange and invest funds but the intergenerational pause that may work out far more costly.
There is a tendency to inherit old political stances and watch polls, instead of knowing what you are doing and hanging on for dear life as your popularity finally rises toward the end of your term.