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.
June 20, 2012
The UK Prime Minister David Cameron takes time to criticise entertainer Jimmy Carr for putting £3.3N through a tax shelter scheme – one that may yet be undone. Carr made headlines as he has satirised the banks and tax avoidance as a comedian.
At least Jimmy Carr creates laughter. Perhaps he will make a big charitable donation so we can forgive him.
Mr Cameron convinces that he puts his panic, preference and public image ahead of any constructive logic, attacking an individual from his office, really. His job is not to be a whip wielding critic of those following the laws he is making a fuss about – it is simply his job to write viable new laws so that inherent unfairness in the system being used even by the likes of Mr Carr is prevented fairly. Takes a steady hand, and a cool head.
It is great that Mr Carr has donated his public profile in protest at so many others getting away with it and maybe he will pay his dues ultimately but is hardly a reason for the Government to pull laws out of a straw hat. Depopulating the HMRC says it all, really.
This is grandstanding at its most inept.
December 10, 2011
On one hand we have 27 countries agreeing that there is a solution in unity, and on the other protecting London’s financial influence and therefore effectiveness – a crumbling cornerstone – a shambles of belief in a system that has massively artificially inflated the economy without deflating the currency because electronics and computer muscle provide a sea changing wealth of opportunities to create capital, that is financial obligations committed with regard to imbalances in the ratio of risk vs return when things went wrong.
A Unification of the rights and obligations of all European citizens is commended by all but the British. Mutualising the benefits of “state capital” to the benefit of Europe would require considerable contribution of raw capital power that London City is and unlike other major sponsor economies in the EU – Great Britain is reluctant to play ball. Being singled out as the new Switzerland is one thing.
Europe becoming what it will become is probably a better destiny for the entire zone with the UK integrated into it, but is what Cameron has done a bad thing for Great Britain? In the final analysis that is not what matters.
July 10, 2011
With the wilful demise of The News of the World, we have witnessed the worst catastrophe in journalism’s history. With it comes the mass rejection of malign journalism. That is the line we must draw.
The Murdoch brand may be damaged beyond comprehension. Any Government that is cavalier enough to approve BSkyB will be remembered by history alongside King John.
Our country does not benefit by any corporate criminal activity. The media affects how we perceive things. Therefore political alliances with the media is corruption.
January 8, 2010
When a flaw in the protective shield that makes airflight possible (without holding your breath) exposed American flights a new kind of designer suicide bomber with a chemistry set to be set off by an “emergency injection”, the media in the UK highlighted how detailed scanners would fail to show such a kit but would expose people’s nakedness to the security police, as if that exposure was indeed sinful. Making people the “apparent victims” of the potential they they exist as a parade of pornographic images is what the purient are most concerned about? Is that their response?