Posts Tagged ‘Lucas Papademos’

Why the Euro is doomed – the German households net wealth is not EVEN HALF of that compared to Italians

9 mars, 2013

So the German people/taxpayers who so far have paid most of the bailouts of the bankrupt euro states (Greece, Spain. Portugal, Ireland etc), and were the bankrupt states insists on Germany paying EVEN more to “save the euro” (together with Sweden, Finland etc), don’t even have HALF THE NET WEALTH of the peoples they are bailing out!

No wonder that the German Bundesbank is keeping this report secret. Because I don’t think the people in Germany is going to be “very happy” when they discover the truth.

They have keep their economy in reasonably good shape and paid their taxes. Now they have to pay for the ones who didn’t.

And there is a new Germany Anti-Euro Party with some very prominent figures behind it. Its founders are a collection of some of the country’s top economists and academics, business people, journalist etc.

And by then way, this would never ever happen in Sweden. Because here, these same people, are the ones that have relentlessly driven (together with our “dear” politicians), the integration with EU and moving most of the power to Brussels. What a contrast.

See a few of my many previous EU posts here:

The economic mess and structural problems in EU and US – Part 1

Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians

This is why the Euro is doomed

EU a stupid empire on purpose

EU – an unaccountable mess created by an undemocratic treaty – Now also a crony Bankocracy)

               (If you click on the graphs they become bigger)

20130301_EU2

Here are some of these articles about the growing poverty in Germany and the cover up of these facts. You have to brush up on your German to read most of these.

(My bold and underline)

Household Finance and Consumption Network (HFCN)

http://www.ecb.int/home/html/researcher_hfcn.en.html

Notenbanker zögern Bericht über Ungleichheit hinaus

http://www.faz.net/aktuell/wirtschaft/wirtschaftspolitik/armut-und-reichtum/verteilung-von-vermoegen-notenbanker-zoegern-bericht-ueber-ungleichheit-hinaus-12105481.html

A “Politically Explosive” Secret: Italians Are Over Twice As Wealthy As Germans

http://www.testosteronepit.com/home/2013/3/8/a-politically-explosive-secret-italians-are-over-twice-as-we.html

In December 2006, the ECB established the HFSC network of survey specialists, statisticians, and economists from its own ranks, national central banks of the Eurozone, and statistical institutes. The acronym stood for Household Finance and Consumption Survey. It would collect “micro-level structural information” on household wealth. A massive bureaucratic undertaking. Surveys went out in 2010. Results are now ready. No one in Europe had ever done a survey on that scale before. And no one might ever do it again. Because, in the era of bailouts and wealth-transfers, the results are so explosive that the Bundesbank is keeping its report secret—and word has leaked out why.

The surveys were conducted on a national basis, with each central bank publishing its own report. They would then be combined and summarized by the ECB into a cohesive picture of how wealthy—or how poor—people in various parts of the Eurozone were. A number of countries already published their reports, including Italy and Austria.

What the Austrian National Bank found was not pretty (20-page PDF). The considerable wealth in Austria was very unevenly distributed. The wealthiest 5% owned nearly half of the country’s wealth. Their median wealth was €1.7 million in diversified assets. The lower 50% owned only 4% of the country’s wealth. Of them, 83% rented their homes. Their median wealth was a measly €11,000 consisting usually of a car and a savings account. That’s half of the people! And 10% had a net wealth of less than €1,000.

This unequal distribution of wealth created a huge gap between median income (half the people earned more, the other half less) of €76,000 and average income of €265,000 (pushed up by a small number of extremely wealthy households). And that’s why some countries don’t even publish average income values. Too much truth would hurt.

Germany’s data is likely to be similar—but the Bundesbank is treating its report like a secret. Because the results are, let’s say, awkward for two reasons. The highly unequal distribution of wealth is one of them. The German government already went through wild gyrations late last year, and now again, over its Poverty Report that exposed some inconvenient facts that were then edited out—something that was leaked immediately, and it caused a ruckus [read…. Censored: Poverty Report in Germany].

Italy is the other issue. But it may be too hot for the Bundesbank to touch. Italy’s report (142-page PDF) finds that median household net wealth has increased 56% since 1991. And from 2008 to 2010, it increased by about 5% annually, despite the crisis!

But the wealth of German households stagnated during much of that time while they paid taxes out of their noses. And now they might learn that Italy’s median household wealth is €163,875—while Germany’s is closer to Austria’s, around €76,000. Less than half!

“Politically explosive,” sources at the Bundesbank whispered to the FAZ.

These reports show that in some countries, like Italy, where government finances have been in crisis, median household wealth is actually greater than in some financially healthy countries where governments have kept deficits and debts down.

Germany’s federal government only had a minuscule deficit in 2012. But high taxes and the citizens’ greater willingness to pay them—though cheating is a national sport—have over the years extracted a lot of wealth from the people and transferred it to the government. In Italy, people have been more adept at hanging on to their wealth. To the detriment of government finances. Other studies have shown similar trends, but never on such a scale with such detail, and in this “harmonized” and easily comparable manner.

It could stir up a firestorm in Germany. It’s not just jealousy. Strung-out German taxpayers would have to be bamboozled into bailing out the mountain of Italian government debt that the Italians, whose median wealth is twice that of Germans, refused to pay for. It won’t sit well. Not at all. It could become a political nightmare for Chancellor Angela Merkel, who faces an election in a few months and must keep any kind of tumult out of the scenery.

If the report ever sees the light of the day in unvarnished form—not a certainty given the debacle of the Poverty Report—Bundesbank statisticians will be trying to explain away the difference between countries like Italy and Germany. Household wealth is particularly high in countries with high homeownership rates, they will argue. In countries where renting is popular, like Germany, a considerable part of the housing stock is owned by the government and rented out in a subsidized manner. Thus the wealth is public, etc. etc. Because the bailout saga must go on. The messy reality that Germans can’t afford to bail out their richer neighbors must not be allowed to interfere with the grand and glorious saga of the euro.

Every country in the Eurozone has its own collection of big fat lies that politicians and eurocrats have served up in order to make the euro and the subsequent bailouts or austerity measures less unappetizing. Here are some from the German point of view….. Ten Big Fat Lies To Keep The Euro Dream Alive.”

The Italian report here (I BILANCI DELLE FAMIGLIE ITALIANE NELL’ANNO 2010):

http://www.bancaditalia.it/statistiche/indcamp/bilfait/boll_stat/suppl_06_12new.pdf

Part of the Austrian report here:

http://www.hfcs.at/de/img/fakten_zur_vermoegensverteilung_in_oesterreich_tcm14-251411.pdf

20130306_EU_0

The report “on Poverty and Wealth” (Lebenslagen in Deutschland) here:

http://www.bmas.de/SharedDocs/Downloads/DE/PDF-Publikationen-DinA4/a334-4-armuts-reichtumsbericht-2013.pdf?__blob=publicationFile

Immer mehr Münchner sind arm

http://www.sueddeutsche.de/muenchen/armutsbericht-immer-mehr-muenchner-sind-arm-1.1501067

Bundesregierung schönt Armutsbericht

http://www.sueddeutsche.de/politik/einkommensverteilung-in-deutschland-bundesregierung-schoent-armutsbericht-1.1535166

Censored: Poverty Report in Germany

http://www.testosteronepit.com/home/2012/11/28/censored-poverty-report-in-germany.html

“On September 17, the German Labor Ministry sent a draft report “on Poverty and Wealth” to the other ministries to be rubber-stamped. Only the final report, once sanctified by Chancellor Angela Merkel, would be made public. The draft was supposed to remain hidden. But it seeped to the surface almost immediately. And it was hot. Too hot.

The massive data (PDF, 535 pages) described the tough reality that many people faced in Germany—a reality that got tougher every year. For example, in 1998, the lower 50% of the population owned 4% of all private wealth, while the upper 10% owned 45%. By 2008, the lower 50% owned only 1%, but the upper 10% had increased its share to 53% (at the expense also of the in-between 40%). Other reports have painted similar pictures.

The poverty report by Germany’s statistical agency showed that the “poverty rate” in Germany has been creeping up: in 2008, it was 15.5%; in 2009 it was 15.6%, and in 2010 it was 15.8%. Particularly hard-hit were people under 65 who lived alone. Their poverty rate was 36.1%. For single-parent households, it was 37.1%. The city of Munich issued its own poverty report. By taking into account Munich’s high cost of living, it found that nearly a fifth of its residents lived in poverty.”

Germany‘s New Anti-Euro Party

http://www.spiegel.de/international/germany/new-party-in-germany-goes-after-euro-skeptic-voters-a-887744.html

“A new party is forming this spring, intent on abandoning European efforts to prop up the common currency. And its founders are a collection of some of the country’s top economists and academics.”

Named Alternative für Deutschland (Alternative for Germany), the group has a clear goal: ”the dissolution of the euro in favor of national currencies or smaller currency unions.” The party also demands an end to aid payments and the dismantling of the European Stability Mechanism bailout fund.

”Democracy is eroding,” reads a statement on its website (German only). ”The will of the people regarding (decisions relating to the euro) is never queried and is not represented in parliament. The government is depriving voters of a voice through disinformation, is pressuring constitutional organs, like parliament and the Constitutional Court, and is making far-reaching decisions in committees that have no democratic legitimacy.”

Prominent Supporters

Alternative for Germany appears to be different, though it has yet to produce a party manifesto. Its impressive list of prominent supporters includes a large number of conservative and economically liberal university professors. The most notable name on the list is Hans-Olaf Henkel, the former president of the Federation of German Industries, but it also includes such economists as Joachim Starbatty and Wilhelm Hankel, who were part of the group that challenged Greek bailout aid at Germany’s Constitutional Court.

Main initiator Bernd Lucke, a professor of macro-economics from Hamburg, was a member of Chancellor Angela Merkel’s Christian Democrats for 33 years before leaving the party in 2011 as a result of euro bailout efforts. ”The current, so-called rescue policies are exclusively focused on short-term interests, primarily those of the banks,” Lucke told the Frankfurter Allgemeine Zeitung this week.”

Here is a list of some the supporters:

http://www.alternativefuer.de/

“Die Alternative für Deutschland wird unterstützt von

Dr. Konrad Adam, Journalist (FAZ, Die Welt) und Publizist.

Walther Adler, Oberregierungsrat, Statistisches Bundesamt, Diez.

Prof. Dr. Hans–Günter Appel, Beiratsvorsitzender Nationale Anti–EEG–Bewegung.

Prof. Dr. Ronald Asch, Geschichtswissenschaften, Freiburg.

Dr. Bruno Bandulet, Journalist und Verleger, Bad Kissingen.

Prof. Dr. Charles Blankart, Volkswirtschaftslehre, Berlin.

Prof. Dr. Ulrich Blum, Präsident des Instituts für Wirtschaftsforschung Halle a. D.

Prof. Dr. Ursula Braun–Moser, Mitglied des Europäischen Parlaments (CDU) 1984–1994.

Peter Christ, vormals Leiter der Wirtschaftsredaktion ”Die Zeit” und Chefredakteur von Stuttgarter Zeitung, Manager Magazin, Sächsische Zeitung u. a., Luzern.

Prof. Dr. Ludwig Cromme, Mathematik, Cottbus.

Wolfgang von Eichborn, Richter, vormals Referent der SPD–Bundestagsfraktion, Ebersberg.

Dieter Farwick, Brigadegeneral a. D. und Publizist, Sigmaringen–Laiz.

Prof. Dr.–Ing. Thomas Albert Fechter, Maschinenbau, Wiesbaden.

Prof. Dr. Herbert Frohnhofen, Systematische Theologie, Mainz.

Dr. Alexander Gauland, Staatssekretär a. D., Potsdam.

Ass. Jur. Albrecht Glaser, Stadtkämmerer der Stadt Frankfurt/Main a. D., Bürgermeister a. D., Niedenstein.

Prof. Dr. Andrea Gubitz, Volkswirtschaftslehre, Frankfurt.

Prof. Dr. Gernot Gutmann, Volkswirtschaftslehre, Rektor Universität zu Köln a. D.

Prof. Dr. Wilhelm Hankel, Präsident der Hessischen Landesbank a. D., Königswinter.

Michael Heendorf, Kriminalbeamter a. D., Magdeburg.

Prof. Dr. Ing. E.h. Hans–Olaf Henkel, Praesident der IBM Europa, des Bundesverbandes der Deutschen Industrie (BDI) und der Leibniz–Gemeinschaft a.D.

Prof. Dr. Carsten Herrmann–Pillath, Volkswirtschaftslehre, Frankfurt.

Prof. Dr. Stefan Homburg, Volkswirtschaftslehre, Hannover.

Dr. Wolfgang Hönig, Generalbevollmächtigter a. D. der Commerzbank AG, Frankfurt.

Dr. Johannes Hüdepohl, Sprecher Bündnis Bürgerwille, Ahrweiler.

Markus Keller, Aktiva Consult GmbH, Frankfurt.

Gerhard Koning, Bankvorstand a. D., Kelkheim.

Wolfgang Kräher, Dipl.–Ing. Werkstofftechnik, Bad Dürkheim.

Caroline Kreusler, Klipp+Klar Unternehmenskommunikation, Hamburg.

Prof. Dr. Jörn Kruse, Volkswirtschaftslehre, Hamburg.

Dr. Klaus–Peter Last, freiberuflicher Softwarespezialist, 1991–1998 Landesschatzmeister von Bündnis90/Die Grünen Mecklenburg–Vorpommern.

Prof. Dr. Bernd Lucke, Hochschullehrer, Universität Hamburg.

Prof. Dr. Helga Luckenbach, Volkswirtschaftslehre, Gießen.

Dagmar Metzger, wordstatt GmbH, München.

Prof. Dr. Dirk Meyer, Volkswirtschaftslehre, Hamburg.

Stefan Milkereit, Steuerberater, Biebertal.

Klaus Müller, Horländer GmbH, Speyer.

Dr. Frauke Petry, Geschäftsführerin purinvent GmbH, Leipzig.

Prof. Manfred Philipp, Chemie, The CityUniversity of New York.

Prof. Dr. Hayo Reimers, Wirtschaftswissenschaften, Gießen.

Martin Renner, Cosmed Marketing und Kommunikation GmbH, Wuppertal.

Prof. Dr. Christian Rennert, Betriebswirtschaftslehre, Köln.

Prof. Dr. Gisbert Richard, Direktor der Universitäts–Augenklinik, Hamburg.

Dr. Thomas Rietzschel, Autor und Journalist, Roßbach.

Dr. Oliver Safarowsky, Chemiker und Betriebswirt, Köln.

Prof. Dr. Karl Albrecht Schachtschneider, Öffentliches Recht, Hamburg.

Bodo Schmidt, Kölnische Haus– und Grundstücksverwaltung, Köln.

Prof. Dr. Peter Schneider, Erziehungswissenschaft, Paderborn.

Hansjörg Schrade, ecofit, Stv. Vorsitzender Aktionsbündnis Direkte Demokratie, Reutlingen.

Prof. Dr. Wolfgang Schöhl, Wirtschaftsjournalismus, Darmstadt.

Wolf–Joachim Schünemann, ASS Versicherungsmakler GmbH.

Prof. Dr. Wolfgang Seeger, Neurochirurgie, Freiburg.

Dr. Bernhard Seitz, Aktionsbündnis Direkte Demokratie, Stuttgart.

Dr. Dieter Spethmann, Vorstandsvorsitzender Thyssen AG a. D.

Prof. Dr. Michael Stahl, Geschichtswissenschaften, Darmstadt/Berlin.

Prof. Dr. Joachim Starbatty, Volkswirtschaftslehre, Tübingen.

Dr. Norbert Stenzel, Geschäftsführer Wetterauer Lieferbeton, Bad Nauheim.

Prof. Dr. Roland Vaubel, Volkswirtschaftslehre, Mannheim.

Dr. Katharina Vocke–Schöhl, Geschäftsführerin und Dozentin, Darmstadt.

Prof. Dr. Heiner Willenberg, Didaktik der deutschen Sprache und Literatur, Hamburg”

Some points from the programme (again, you have to brush up on your German):

http://www.alternativefuer.de/programm.html

“Unser Standpunkt

In ernster Sorge vor politischen und wirtschaftlichen Fehlentwicklungen in Deutschland und in der Europäischen Union haben wir die Partei ”Alternative für Deutschland” gegründet. Die europäische Schulden- und Währungskrise hat viele Menschen davon überzeugt, dass die Altparteien zu einer nachhaltigen, transparenten, bürgernahen, rechtsstaatlichen und demokratischen Politik nicht imstande oder nicht willens sind. Wir formulieren Alternativen zu einer angeblich alternativlosen Politik. Dabei bejahen wir uneingeschränkt die freiheitlich-demokratische Grundordnung der Bundesrepublik Deutschland und die im Grundgesetz und in den Römischen Verträgen angelegte friedliche Einigung Europas.“

 Währungspolitik

 •Wir fordern eine geordnete Auflösung des Euro-Währungsgebietes. Deutschland braucht den Euro nicht. Anderen Ländern schadet der Euro.

•Wir fordern die Wiedereinführung nationaler Währungen oder die Schaffung kleinerer und stabilerer Währungsverbünde. Die Wiedereinführung der DM darf kein Tabu sein.

•Wir fordern eine Änderung der Europäischen Verträge, um jedem Staat ein Ausscheiden aus dem Euro zu ermöglichen. Jedes Volk muss demokratisch über seine Währung entscheiden dürfen.

•Wir fordern, dass Deutschland dieses Austrittsrecht aus dem Euro erzwingt, indem es weitere Hilfskredite des ESM mit seinem Veto blockiert.

•Wir fordern, dass die Kosten der sogenannten Rettungspolitik nicht vom Steuerzahler getragen werden. Banken, Hedge-Fonds und private Großanleger sind die Nutznießer dieser Politik. Sie müssen zuerst dafür geradestehen.

•Wir fordern, dass hoffnungslos überschuldete Staaten wie Griechenland durch einen Schuldenschnitt entschuldet werden. Banken müssen ihre Verluste selbst tragen oder zu Lasten ihrer privaten Großgläubiger stabilisiert werden.

•Wir fordern ein sofortiges Verbot des Ankaufs von Schrottpapieren durch die Europäische Zentralbank. Inflation darf nicht die Ersparnisse der Bürger aufzehren

Europapolitik

•Wir fordern ein Europa souveräner Staaten mit einem gemeinsamen Binnenmarkt. Wir wollen in Freundschaft und guter Nachbarschaft zusammenleben.

•Wir fordern, das Budgetrecht den nationalen Parlamenten zu belassen. Eine Transferunion oder gar einen zentralisierten Europastaat lehnen wir entschieden ab.

•Wir fordern, Gesetzgebungskompetenzen zurück zu den nationalen Parlamenten zu verlagern. Über Glühbirnen und Gurkenkrümmungen kann der Bundestag alleine entscheiden.

•Wir fordern eine Reform der EU, um die Brüsseler Bürokratie abzubauen und Transparenz und Bürgernähe zu fördern.

•Wir fordern, die Bezüge der Brüsseler Beamten auf Normalmaß zurückzuführen. Es ist schändlich, dass Tausende Brüsseler Beamte mehr verdienen als die Bundeskanzlerin.

•Das europäische Parlament hat bei der Kontrolle Brüssels versagt. Wir unterstützen nachdrücklich die Positionen David Camerons, die EU durch mehr Wettbewerb und Eigenverantwortung zu verschlanken.

Staatsfinanzen und Steuern

•Wir fordern, die Schuldenbremse zu achten und die Schuldenberge abzubauen. Auch Deutschland hat viel mehr Schulden als zulässig.

•Wir fordern, dass die Haftungsrisiken aus der Euro-Rettungspolitik endlich in der Finanzplanung berücksichtigt werden. Derzeit wird den Bürgern bewusst Sand in die Augen gestreut.

•Wir fordern eine drastische Vereinfachung des Steuerrechts. Der Bürger muss verstehen können, warum er in welcher Höhe besteuert wird. Die Cleveren sollen nicht besser behandelt werden als die Ehrlichen.

•Wir fordern ein Steuersystem, in dem Reiche absolut und prozentual stärker belastet werden als Arme. (Progressive Einkommensbesteuerung).

•Wir fordern, dass die Politik sich dem Einfluss von Lobby-Gruppen entzieht und einen bürgernahen Vorschlag – bspw. den Kirchhof’schen Steuerreformvorschlag – umsetzt

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The economic mess and structural problems in EU and US – Part 1

23 januari, 2013

EU, and the political elites behind it, is no longer a caricature or a joke. They have managed to become a joke of a caricature. An absurd Alice in Wonderland economic and political farce is playing out and the common people of Europe is, as usual, paying the price.

Here is just some updated data to some of my previous posts. It ain’t pretty to say the least!

(See my posts:

Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians

This is why the Euro is doomed

EU a stupid empire on purpose

EU – an unaccountable mess created by an undemocratic treaty – Now also a crony Bankocracy)

The EU Crisis is anything but over regardless of what the political elites are trying to tell people in Europe. The ECB may have pushed the banking crisis temporarily back by promising unlimited bond buying. Yes, dear people, read that again – UNLIMITED!

That’s your tax money spent like a drunken sailor.

But soon there is NO MONEY LEFT.

So here we go again for the 7th, 8th or is it the 9th time so far – Europe’s banking system is breaking down again. No surprise to anybody expect or politicians and bankers.

Just start adding up the GIGANTIC NUMBERS and be utterly horrified!

This is the situation that politicians and the banks have put the common people of Europe in.

They are literally ruining us all. And WE, the common people, have to pay the price of their folly and speculations.

As a longtime observer of EU noticed:

Then again, on the insolvent continent, nothing really surprises us any more.”

And:

How can broke economies lend money to other broke economies who haven’t got any money because they can’t pay back the money the broke economy lent to the other broke economy and shouldn’t have lent them in the first place because the broke economy cant pay it back”.

Even a 5 year old can understand this. But not “our” politicians and bankers.

Remember that the Euro was always a political project. That’s why “they” haven’t done the”proper” economic policies. Because these policies would undermine the political purpose of the Euro. So they, the political elites of EU, are trapped. And that’s why the Euro was domed from the beginning.

And of course, none of this is covered in the mainstream/old media or by our “dear” politicians.

                                  Greece

Greek Bank Capital Needs at EU27.5 Billion, Bank of Greece Says

http://www.bloomberg.com/news/2012-12-27/greek-bank-capital-needs-at-eu27-5-billion-bank-of-greece-says.html

Greece’s four largest banks need to boost their capital by 27.5 billion euros ($36.3 billion) after taking losses from the country’s debt swap earlier this year, the largest sovereign restructuring in history.

National Bank of Greece SA, the country’s biggest lender, needs to raise 9.8 billion euros, according to an e-mailed report by the Athens-based Bank of Greece (TELL) today. Eurobank Ergasias SA (EUROB) needs 5.8 billion euros, Alpha Bank (ALPHA) needs 4.6 billion euros and Piraeus Bank SA (TPEIR) needs 7.3 billion euros, according to the report. Total recapitalization needs for the country’s banking sector amount to 40.5 billion euros, the report said.”

To put this in perspective: The entire capital base of the Greek banking system is only €22 billion.

By saying that Greek banks need €27.5 billion Greece is essentially admitting that is needs to recapitalize its entire banking system. Also, you should know that Greek banks are still sitting on €46.8 billion in bad loans.

So the Greek banks have a capital base of €22 billion and bad loans of €46.8 billion.

There is a name for this – Bankrupt!

And remember, this is AFTER ALL the “rescue plans”, bailouts etc. already implemented so far by the “Troika” (IMF, ECB and EC).

                                                  Cyprus      

Cyprus is the euro area’s third-smallest economy in GDP terms, accounting for less than 0.2% of the region’s output. Yet the country urgently needs external funding and applied for an Troika (EC/IMF/ECB) programme last summer. In the meantime, the amount in question has risen to EUR 17.5bn (100% of GDP).

Read that again – 100% of GDP!

By mid-2012, larger banks like Bank of Cyprus or Cyprus Popular Bank alone reported loans to Greek borrowers that exceeded Cyprus’ GDP.

The Cyprus central bank’s emergency liquidity assistance (ELA) to the banking system skyrocketed from EUR150m in March 2012 to EUR 9.9bn (55% of GDP) in September.

So the Cyprus central bank only in September but in 55% of the whole Cyprus GDP into its own banking sector.

20130119_cyprus2

                                                 Spain

Bankia worthless says new report

http://www.euronews.com/2012/12/27/bankia-worthless-says-new-report/

Bankia’s shareholders have received a nasty new year’s surprise. They may lose most of their investments or even all of them says the Spanish bank rescue fund in its latest report.

According to FROB, the Fund for Orderly Bank Restructuring, Bankia has a negative value of 4.2 billion euros, and its parent group BFA is 10.4 bn in the red.

Valuation is key in the recapitalisation of Spain’s banking system, weighed down by massive bad loans accumulated in a property bubble that burst in 2008. Bankia/BFA is set to receive 18 bn euros of European aid, and become the country’s biggest bailout recipient.”

A little known fact about the Spanish crisis is that when the Spanish Government merges troubled banks, it typically swaps out depositors’ savings for shares in the new bank.

So when the newly formed bank goes bust,  your savings are GONE. Not gone as in some Spanish version of the FDIC will eventually get you your money, but gone as in gone forever.

This is why Bankia’s collapse is so significant: in one move, former depositors at seven banks just lost virtually everything.

In addition, things are going from worse to worst, as bad loans in Spain continue to accelerate to massive new record highs.

20130118_SPAINLOAN_0

Index of Spanish Industrial Output

index of Spanish Industrial Output

                                                 Italy

In Jan 2012, Italy’s government believed Italy’s 2012 GDP would come in at – 0.4%. The actual in (Q3) – 2,4% (so far).  Only a miss by 600%.

20130118_ITALYGDP_0

And the forecast for Italy’s GDP in 2013 is being lowered every month. Each one as inaccurate as the previous one.

20130118_ITALYGDP1_0

And then there is Ireland, Portugal, France….

Part two tomorrow about USA.

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The active lying and deceit behind the creation of EU – The British story

5 januari, 2013

The all too familiar story how the political elite, in their own words and documents, decided to deceive and actively lie to the British people in an all out effort to join the “common market”.

Here is a piece by Christopher Booker and Richard North (see below) on the deceit and active lying behind Britain’s entry to the EU in their, the politicians, own words.

“The real problem the British people have had with the ‘European project’, as its insiders call it, is that they have never really begun to understand its real nature, and what was always intended to be its ultimate goal.

The chief reason for this is that our politicians have never properly explained it to us.

What makes this so much worse is that those who were most enthused by it, such as Heath, knew full well what ‘the project’ was really about — the plan to weld all Europe together under an unprecedented form of super-government.

They deliberately decided to conceal it from us, for fear that our anxieties about our loss of sovereignty might prevent them from being allowed to join.”

“Thus, stealthily assembled over decades, would this new ‘country called Europe’ finally take its place on the world stage. What we found most shocking in researching this story was that, when Britain’s leaders first considered joining the project, they were made fully aware of this hidden agenda.

As we see from Cabinet papers and other documents of the early Sixties, Prime Minister Harold Macmillan and his ‘Europe Minister’ Edward Heath were put completely in the picture about the secret ‘grand plan’. But in June 1961 the Cabinet formally agreed that it must not be revealed to the British people.

In Macmillan’s words, to admit ‘the political objectives’ of the Rome Treaty would raise ‘problems of public relations’ so ‘considerable’ that they should be kept under wraps. It was vital to emphasise only the economic advantages of British entry.”

“On the day we entered, he told the British people on television that any fears that ‘we shall in some way sacrifice independence and sovereignty’ were ‘completely unjustified’.

This was a deliberate lie, as no one knew better than him and the senior Foreign Office official who two years earlier had written a secret paper on ‘Sovereignty’.

The paper chillingly spelled out how it would be the end of the century before the British people woke up to how much of their power to govern themselves and make their own laws had been given away — by which time it would be too late.”

We seen this sad story repeated in country after country. The same behaviour with few exceptions.

This relentless drive at ALL COSTS from the political elites, on purpose, for a political union and European super state regardless of the will of the people.

And if the people protest and object, as they have EVERY time they where ALLOWED to, it doesn’t matter! Run them over, force it through one way or the other as the examples from the last 40 years clearly shows.

“At first it should be presented as just a trading arrangement, the ‘Common Market’ set up in 1957 by the Treaty of Rome. But the essence of that treaty was to create the core institutions of what Monnet always intended should one day be the ‘Government of Europe.

The idea was to work for ‘ever closer union’.

Treaty by treaty, it would take over more powers from national governments, based on the sacred principle that once power to make laws was handed over to Brussels it could never be given back.”

As I wrote in my post Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians as the banderol of the police demonstration in Madrid so neatly summed it up:

”Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians.”

The whole economic and political crisis in EU and USA summarized in one simple sentence.”

Citizens! Forgive us for not arresting those truly responsible for this crisis- bankers and politicians

And as I wrote in my post EU a stupid empire on purpose:

“This is one of the best and succinct descriptions of EU I have seen:

“The European Union is like a hospital where all the doctors are mad. It doesn’t matter what is wrong, the treatment is always the same – more integration – and it is always wrong. The best thing to do is never to enter it.

Once you are in, the best thing to do is to leave. If you can’t get out, you will probably die.”

I disagree with one thing this author says: “EU is the Stupid Empire”. EU is a POLITICAL project. The Euro is part of that political project.

A lot of  EU’s decisions make no economic sense whatsoever. In that regard, Peter Hitchens observation that “EU is the Stupid Empire” is completely right.  Not to mention the enormous cost to the common people of all these political motivated but economically disastrous decisions.

The economic side was always a way to “sell it to the people”. Step by step. So that the political agenda could be slowly, but steadily implemented. Until it was too late. The political elites new ALL along that had the EU project been presented to the people for what it really is, people in ALL countries would have rejected it.

BUT EU was on purpose designed this way. So that the people could not stop this political project.

Never forget that ALL the political elites, irrespective of party or ideology, in the EU countries were behind this. With very few exceptions.

One small example, before the referendum on the Euro in September 2003 in Sweden, ALL parties (with the exception of some communists, greens, socialists and some from the agrarian party, ALL big unions, ALL mainstream media, ALL the representatives of the business world etc was for the Euro. And they put massive financial and personal resources behind this.

But the Swedish people, wisely, rejected this with 56% to 42%.

In the latest opinion poll, December 2011, 87,6% of the Swedish people were against the Euro. 9,7 % for. (Update- one year later these figures are even worse).

They planned this, and wanted this. And they kept on purpose this real ideology behind the EU project well hidden from their citizens in their countries.

They kept everything on purpose, including treaties, SO technical and juridical that it was totally unreadable for the common people. Like the EU “constitution”.

Just to give one example of how meaningless the local parliaments have become:

In Sweden 65 to 85%, depending of which area, of “decisions” made by the Swedish parliament HAVE ALREADY BEEN DECIDED IN BRUSSELS.

I.E. The national Swedish parliament is in reality rubber-stamping Brussels decisions and implementing them.

That’s all!

And they cannot change even one syllable in these decisions. So much for “representing” the will of the people.

But of course, they are not telling us that. They pretend that ALL these decisions are made locally by the Swedish parliament as the “sovereign” representatives for the Swedish nation. When in reality they can, to the most part, only decide the colour of their on toilets.”

And sadly, and as usual, the mainstream media/old media has for the most part taken en active role in promoting this political union and the European Super State. Add to that, the press utter failure to inform the people of their respective countries how EU REALLY works. And what it means to people and the sovereignty of their countries.

Most journalists have no clue about the important “inner” bureaucratic game and ”the machinery” where nearly everything is decided. Instead, we see these useless reports and photo ops when the prime ministers or finance ministers meet. When in reality 99,8 or 9 % is already decided before they meet. Most of it is just a “show”. Often “very dramatic” late in to the night.

And this is nothing new.  We have seen so many different examples of this betrayal of journalist in their role as journalist. This is just sadly another.

Some other EU posts here:

Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians

EU a stupid empire on purpose

EU – an unaccountable mess created by an undemocratic treaty – Now also a crony Bankocracy

The scam that is called EU and the Euro is behind the present crisis

Who the Hell do You Think You Are: The Euro Game Is Up!

EU – an unaccountable mess created by an undemocratic treaty

EU – The aim of this treaty is to be unreadable and unclear AND it can not be understood by ordinary citizens

The New EU foreign minister – An undemocratic appointment to an undemocratic post created by an undemocratic treaty

EU- an expensive pile of festering rubbish, mired in corruption, surrounded by inept and impotent politicians

EU: s foreign minster performance so far – lacklustre and a pushover 2

The HUGE difference between EU and USA in response to Haiti.

EU: s foreign minster performance so far – lacklustre and a pushover

EU – The inner game and the Corruption that Cost £684 931,5 per hour EVERY hour EVERY day EVERY year. And is increasing

The EU Auditors have, for the 15th year in a row, refused to sign off the EU’s accounts owing to Fraud and Mismanagement in the budget

                       EU Youth Unemployment Rates

20121206_EUYouth_0

(My bold and underlining)

Monumental deceit: How our politicians have lied and lied about the true purpose of the European behemoth

http://www.dailymail.co.uk/news/article-2255506/Monumental-deceit-How-politicians-lied-lied-true-purpose-European-behemoth.html

By Christopher Booker

Forty years ago today, in what was arguably the most fateful political move ever made by a British Prime Minister, Edward Heath took us into what was then called the ‘Common Market’.

Such a step had scarcely been mentioned at the previous General Election, and the British people had very little idea of what they were letting themselves in for, other than a trading arrangement that might make it easier for us to sell our goods to our Continental neighbours.

Four decades later, the picture could scarcely look more different. We have seen that supposedly cosy club we joined transformed, step by step, into a vast, bloated bureaucratic empire, imposing its suffocating rule over 27 nations.

We have also seen it plunged into the most destructive crisis in its history — one it has brought entirely on itself by its reckless dream of locking the countries of Europe together into the straitjacket of the euro.

During those 40 years the British have never been happy members of this club. Too often we have been out of step, and even bitterly at odds, with the rest — as in our refusal to join that single currency.

But today, as the EU’s inner core of countries drive towards ‘full political union’ in a desperate bid to save their doomed euro, the British now look at this swollen political monster with fearful bemusement.

Politicians of every party talk plaintively about the need for us to negotiate a ‘looser relationship’ with the EU, while opinion polls consistently show a growing majority wanting to leave it altogether — an option that even David Cameron no longer rules out.

Even on the Continent, influential voices are now recognising that something very significant is happening in Britain, as they suggest we should perhaps be allowed something never seen before — a mere ‘associate membership’ of the EU, allowing us to continue trading with it but without all its political superstructure.

How did we come to such a pass? Are we today looking at another historic crossroads, in its own way just as fateful as the one we faced back in 1973?

The real problem the British people have had with the ‘European project’, as its insiders call it, is that they have never really begun to understand its real nature, and what was always intended to be its ultimate goal.

The chief reason for this is that our politicians have never properly explained it to us.

What makes this so much worse is that those who were most enthused by it, such as Heath, knew full well what ‘the project’ was really about — the plan to weld all Europe together under an unprecedented form of super-government.

They deliberately decided to conceal it from us, for fear that our anxieties about our loss of sovereignty might prevent them from being allowed to join.

Ten years ago, with my co-author Richard North, I wrote a comprehensively researched history of the ‘European project’.

I had already been reporting for years on the incredible damage membership of the EU was doing to British life, through thousands of crazy directives and regulations, through the destruction of our proud fishing industry and the undermining of our agriculture, which was until 1973 the most efficient in Europe.

The real story, surprisingly, goes back to the 1920s, when a senior League of Nations official, Frenchman Jean Monnet, first began to dream of building a ‘United States of Europe’, very much on the lines that decades later would shape the European Union as it is today.

After World War II, Monnet, by then the second most powerful man in France, finally set the project on its way. He knew there was no chance of bringing such an astonishingly ambitious vision into being all at once. So his plan was that it should gradually be constructed, piece by stealthy piece, without ever declaring too openly what was intended to be its ultimate goal.

At first it should be presented as just a trading arrangement, the ‘Common Market’ set up in 1957 by the Treaty of Rome. But the essence of that treaty was to create the core institutions of what Monnet always intended should one day be the ‘Government of Europe.

The idea was to work for ‘ever closer union’.

Treaty by treaty, it would take over more powers from national governments, based on the sacred principle that once power to make laws was handed over to Brussels it could never be given back.

Ever more countries would be brought into the net, until the project reached its ultimate goal as a super-government, with its own president and parliament, its own currency and armed forces, its own flag and anthem — all the attributes of a fully-fledged nation state.

Thus, stealthily assembled over decades, would this new ‘country called Europe’ finally take its place on the world stage. What we found most shocking in researching this story was that, when Britain’s leaders first considered joining the project, they were made fully aware of this hidden agenda.

As we see from Cabinet papers and other documents of the early Sixties, Prime Minister Harold Macmillan and his ‘Europe Minister’ Edward Heath were put completely in the picture about the secret ‘grand plan’. But in June 1961 the Cabinet formally agreed that it must not be revealed to the British people.

In Macmillan’s words, to admit ‘the political objectives’ of the Rome Treaty would raise ‘problems of public relations’ so ‘considerable’ that they should be kept under wraps. It was vital to emphasise only the economic advantages of British entry.

Thus did Macmillan and Heath become drawn into complicity with that same web of deceit which was driving the ‘project’ itself (which is why we called our book The Great Deception).

Twice in the Sixties Britain made failed attempts to join the project — but within weeks of Heath entering Downing Street in 1970, he applied to Brussels a third time. Scarcely had negotiations begun than he learned that his future partners were already discussing the next steps along their path to full integration: a single currency, European defence forces, a common foreign policy.

Heath immediately sent word to Brussels pleading for all this to be kept quiet, because it might blow the gaffe with British voters.

For two years the negotiations continued, with Heath handing over all he was asked for, from giving away Britain’s fishing waters, the richest in the world, to become ‘a common European resource’, to the betrayal of our Commonwealth partners by excluding their goods from what had been for many their main export market.

Finally, Heath got what he was after: entry to the club — although he still pretended that the Common Market was little more than a trading arrangement.

On the day we entered, he told the British people on television that any fears that ‘we shall in some way sacrifice independence and sovereignty’ were ‘completely unjustified’.

This was a deliberate lie, as no one knew better than him and the senior Foreign Office official who two years earlier had written a secret paper on ‘Sovereignty’.

The paper chillingly spelled out how it would be the end of the century before the British people woke up to how much of their power to govern themselves and make their own laws had been given away — by which time it would be too late.

So began the dismal story which has been unfolding ever since. Already by the late Seventies, as the Common Market morphed into ‘the European Community’, we were becoming known in Brussels as ‘the awkward partner’.

Then came Mrs Thatcher’s five-year battle to win that rebate on our payments into the EU budget which, thanks to the ludicrously lop-sided conditions accepted by Heath, would have made us the largest single contributor by 1985.

In 1986 came the treaty called the Single European Act, which not only set up the Single Market but handed over to Brussels all sorts of other powers, including environmental laws which were to lead to everything from the shambles of our rubbish collections to building thousands of hated and useless wind turbines.

                                           EBC Balance sheet

EBC Balance sheet

In 1990, nothing did more to inspire hostility to Mrs Thatcher among her European colleagues, led by Jacques Delors, than her defiant opposition to the Maastricht Treaty, designed to create the European Union, introduce the ‘social chapter’ and, above all, to launch the single currency.

As soon as he replaced her, John Major proclaimed his wish for Britain to be ‘at the heart of Europe’ and signed the Maastricht Treaty (admittedly with those vital opt-outs for Britain on the single currency and the social chapter).

But seven years later he ended up more at odds with his partners than ever, as they imposed their worldwide ban on the export of all British beef products over ‘mad cow disease’, tried to sneak us into the social chapter under ‘health and safety’ rules and laid their plans for yet another integrationist treaty in Amsterdam.

Tony Blair, too, wanted to be ‘at the heart of Europe’, as the single currency approached (which he would love to have joined), signing us up to the social chapter with its damaging working-time rules, and two more treaties, at Amsterdam and Nice.

But he too found it hard to keep up with that relentless drive for ever closer union, as it led to seven years of tortuous negotiation to create ‘A Constitution for Europe’, eventually sabotaged by the voters of France and Holland, so that it had to be smuggled in by deceit as the Lisbon Treaty (which, among much else, incorporated the Court of Human Rights into the EU). Scarcely was the ink dry on Prime Minister Gordon Brown’s signature on that treaty than the EU was plunged into its worst-ever crisis over the euro, which today is spreading misery across southern Europe.

As always, the response of the EU’s leaders has been to call for yet ‘more Europe’, and a new treaty to force the eurozone members into ‘full political union’.

This is now leaving Britain more obviously marginalised than ever, condemned to remain in the outer ring of a club, many members of which would now be only too pleased to see the back of us.

This humiliating prospect has seen our politicians running around like bewildered sheep, bleating about the need for Britain to negotiate a ‘looser relationship’ with the EU, to get back to that trading arrangement we thought we were entering 40 years ago.

Astonishingly, this is now even being echoed as a possibility by those influential voices in Europe itself — even though the most fundamental rule of the club we joined back then was that, once powers are passed to Brussels, they can never be given back.

As David Cameron prepares to give that ‘very important speech on Europe’ he has promised us very soon, he could not do better than to meditate on the shrewdest words ever uttered by a Prime Minister about Britain and Europe. In 1973, as a junior member of Heath’s Cabinet, Margaret Thatcher made all the approved noises about how wonderful it was for Britain to join this club.

Once in office, however, she went on a painful learning curve, as she saw from the inside just what the real game was and how ruthlessly it was played. She was brought down in 1990 by an alliance of Europhiles in her party and their Brussels allies, because she was the last real obstacle to their Maastricht Treaty.

What really riled them was that she had seen through their true agenda and the disastrous course on which they were set.

With even Jacques Delors, the chief architect of Maastricht, suggesting it might be best for Britain to leave the EU, Mr Cameron should dwell on a passage from her last book, Statecraft.

That such an unnecessary and irrational project as building a European super-state was ever embarked on,’ wrote Lady Thatcher, ‘will seem in future years to be perhaps the greatest folly of the modern era. And that Britain...should ever have become part of it will appear a political error of the first magnitude.’

If Mr Cameron truly wishes to speak for the British people and our country’s future, he should bear those prophetic thoughts in mind.”

And Richard North complementing on the same subject:

EU politics: monumental deceit

http://www.eureferendum.com/blogview.aspx?blogno=83462

“The piece serves to remind us that entry was perpetrated on the basis of structured deceit, with successive prime ministers (Macmillan and Heath) actively lying as to their broad intentions and the proposed relationship with the Six.

“Those utter fools who assert that the relationship was primarily economic (and has since gone off the rails) need to read the Cabinet Memorandum of 21 June 962, (originally referenced C. (61) 84 and now CAB/129/105), in which Macmillan set out the purpose of seeking full United Kingdom membership of the European Economic Community, as ”… the only effective way of securing our political objectives in the world, and of averting the dangers of continued division in Europe”.

Eur%20000-cab1

Then, in a note to his Cabinet colleagues on 10 October 1961 (Originally C.(61)162, now: CAB/129/107 – see above), Edward Heath asserted that the UK had been following closely the progress towards unity in fields other than those covered by the three communities.

He conveyed to his colleagues that it was the intention of the UK to work with the Six ”in a positive spirit to reinforce the unity already achieved”. Heath was ”convinced” that the UK and the Six ”share the same essential interests”, and that ”the habit of working together, once formed, will mean, not a slowing down, but a continued advance and the development of closer unity”.

From the very start, therefore, it was evident that Heath intended to take the UK into the EEC with a view to developing further political unity. The economic issues were always camouflage, and the label ”Common Market” was simply a ploy deliberately to obscure the real intent.

Cameron and modern-day politicians are now paying the price for that deceit, having to deal with a relationship founded on a bed of lies and poisoned by the continuing deception.

Such a situation is irrecoverable, which means there can only be one resolution – our withdrawal from the European Union. Simply, a relationship built on lies can never prosper, and can never be repaired. We need to start again to avoid what Thatcher called a ”the greatest folly of the modern era”.

And the first step starts with the admission that the EU and its precursors were never economic alliances. The economic aspects were always a means to an end, designed to secure political unity, something which has been foisted upon us by deceit, and of which we want no part.

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Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians

20 november, 2012

Or this is why the Euro is doomed. And after that EU – Yes we have NO Money.

On Saturday November 17, police officers from all over Spain marched through Madrid, protesting austerity measures and cuts. They even apologized to the public for arresting the wrong people. One of the slogans was:

”Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians.”

The whole economic and political crisis in EU and USA summarized in one simple sentence.

It complements what I wrote in my post EU a stupid empire on purpose:

“This is one of the best and succinct descriptions of EU I have seen:

The European Union is like a hospital where all the doctors are mad. It doesn’t matter what is wrong, the treatment is always the same – more integration – and it is always wrong. The best thing to do is never to enter it.

Once you are in, the best thing to do is to leave. If you can’t get out, you will probably die.

I disagree with one thing this author says: “EU is the Stupid Empire”. EU is a POLITICAL project. The Euro is part of that political project.

A lot of  EU’s decisions make no economic sense whatsoever. In that regard, Peter Hitchens observation that “EU is the Stupid Empire” is completely right.  Not to mention the enormous cost to the common people of all these political motivated but economically disastrous decisions. 

The economic side was always a way to “sell it to the people”. Step by step. So that the political agenda could be slowly, but steadily implemented. Until it was too late. The political elites new ALL along that had the EU project been presented to the people for what it really is, people in ALL countries would have rejected it.

BUT EU was on purpose designed this way. So that the people could not stop this political project.

Never forget that ALL the political elites, irrespective of party or ideology, in the EU countries were behind this. With very few exceptions.”

The EU bureaucrats and the political elites always fall back, when they have nothing else to say in defence of the EU, that this is a “peace project”. Well this “peace project” has now created social havoc, riots, and put country against country, and groups of countries against group of countries.

Tearing apart the EU at it’s seems. And ALL of this because they, the political elites, literally AT ALL COST want to preserve the POLITICAL project euro. Which is the cornerstone of the federal super state of Europe.

As I have said before, this has nothing to do with economics; it’s ALL about politics,

And that is why so many people still don’t understand what is going on. Because from an economical point these policies are total madness. Ruining and lowering the living standard of most people. And the political elites know this. But the political project is MORE important.

Then there is Ireland, Italy, Portugal, Cyprus, France….

Just start adding up the GIGANTIC NUMBERS and be utterly horrified!

This is the situation that politicians and the banks have put the common people of Europe in.

They are literally ruining us all. And WE have to pay the price of their folly and speculations.

One more slogan from the protests – They are the same

Depicting Spanish Prime Minister Mariano Rajoy (L) and the leader of the opposition Socialist Party (PSOE) Alfredo Perez Rubalcaba

The Big picture

This is from the IMF’s World Economic Outlook (WEO) Notice the rising trend of the 27 Developing Asian economies as a share of World GDP.  Bloomberg’s Chart of the Day notes that by the end of 2012, Developing Asia will account for 17.9% of World GDP, surpassing for the first time Europe’s 17-nation 16.9% share. The euro-area crisis has merely accelerated a trend that has been ongoing for several years – as former IMF board member Domenico Lombardi notes, makes it clear that euro-area economies need to address their structural reforms rapidly.

America is on the same path, as while China will top Europe by 2017 as a share of global GDP, USA will be passed in five years when Developing Asia will have topped the USA for the first time ever.

All graphs gets bigger if you click on it

Just one small example of all these stupid US policies, on Januari 1, 2013, dividend tax rates are set to rise from 15% to as high as 43.4%. This affects not only US taxpayers, but everyone on the planet who invests in the US stock market.

As a result of this tax policy, many investors who own shares in US companies will now see their after-tax dividends slashed by 33%.

This is putting a lot of downward pressure on stock prices, affecting almost everyone who currently owns US shares– pension funds and retirement accounts, rich and middle class, US and non-US citizens alike. It’s as if the US government is hanging a sign over the country saying ”PLEASE DO NOT INVEST HERE.”

It’s pure genius wouldn’t you say?

(See some of my previous posts on the economic situation in USA:

The US election – Yes we have NO bananas

How Obama loves the poor SOOO MUCH, especially the black, that they have had the largest single drop in income ever

In three graphs – Obama Economics

One more small example, in this case the UK, national government borrowing is already 22% higher than at this same point last year, a record year for borrowing. Meanwhile, the UK‘s budget deficit for August hit a record high.

I hope you get the picture- it isn’t pretty!

And the unemployment picture

And let’s continue with Spain:

Spanish bad loans

The figures are just out for the total Spanish bad loans during September: the loans that fell into arrears, (the part of a debt that is overdue after missing one or more required payments), increased by €3.5 billion from August, reaching €182.2 billion in September. This is 10.71% of the total Spanish bank loans of €1.7 trillion, and an increase from the previous month.

Putting the bad loan number in perspective, it is nearly double the €100 billion that the Spanish banks will receive as part of the bank bailout plan disclosed in July, and well above the ”only” €40 billion that Spain promises it will need to actually fund bank capital shortfalls.

If you compared as a percentage of GDP, it would be the equivalent of $2.8 trillion in US loans going bad.

(See also my post This is why the Euro is doomed.)

Spain’s Regional Debt

And Greece:

The Greece budget

The Athens Finance Ministry just released 2013-2016 its latest re-re-revised budget.

http://www.minfin.gr/content-api/f/binaryChannel/minfin/datastore/a7/91/b0/a791b0bf4bc73a9679bac65792933157d4cf7b27/application/pdf/%CE%9C%CE%95%CE%A3%CE%9F%CE%A0%CE%A1%CE%9F%CE%98%CE%95%CE%A3%CE%9C%CE%9F_2013.pdf

Let’s look merely on one data series: the brand new Debt/GDP, (ignoring the -4.5% 2013 GDP forecast, already – 0.5% worse than the just released IMF forecast for Greece for the same period, remember also that the May forecast of 2013 predicted ”growth”), and compared it to the Debt/GDP ”forecast” from May 2010, when the first Greek bailout was announced.

It ain’t pretty

The Greece Finance Ministry

This is the same Finance Ministry where the EU inspectors found this in their taxation archive section (see the video 5:20-5-48):

Watch this documentary from ZDF (in german). It shows where 2 ½ years of bailout funds went, or rather didn’t go. And why 2 ½ years to the day after the first bailout, not only is Greece not fixed, but is getting worse at a cost to taxpayers of nearly half a trillion Euro.

Die Griechenland-Lüge

http://www.zdf.de/ZDFmediathek/beitrag/video/1634150/Dokumentation-Die-Griechenland-Luege#/beitrag/video/1634150/Dokumentation-Die-Griechenland-Luege

The Troika and their “predictions”

The troika (the European Commission, the International Monetary Fund, and the European Central Bank), which are supposed to get Greece’s financial future in order cannot make even the most basic forecasting. And the Troika have made these “forecasts” repeatedly, which are a complete and utter joke.  But there is NO surprise here, this is ALL about politics. The same way that EU allowed Greece into the Euro knowing that every figure was false. But for political reasons they were allowed to enter.

And these “guys” are supposed to save Europe? Where all the important decisions are being taken on the ground of these “forecasts”?

The Greece unemployment

Again, It ain’t pretty.

I could go on, but I think I stop here.

You get the picture.

And of course, none of this is covered in the mainstream media or by our “dear” politicians.

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This is why the Euro is doomed.

11 juni, 2012

As a complement to my previous post  EU a stupid empire on purpose

http://www.zerohedge.com/news/spains-real-debt-gdp-right-now-1466

And then there is Greece, Ireland, Italy, Portugal, Cyprus….

Just start adding up the GIGANTIC NUMBERS and be utterly horrified!

This is the situation that politicians and the banks have put the common people of Europe in.

They are literally ruining us all. And WE have to pay the price of their folly and speculations.

And after the Spanish bailout Ireland promptly requested a renegotiation of its own terms to match those of Spain.

And in six days there is the Greece election. Alexis Tsipras, leader of Greece’s leftwing Syriza coalition of course used this bailout to strengthening his party’s position.

“What we wonder is why did Europe cave to the Spanish demands before the Greek elections. Because, paradoxically, by yielding to a bailout plan, which at least superficially has been painted as one without conditions, it just cemented Syriza’s entire electoral platform as having absolute validity.

Then again, on the insolvent continent, nothing really surprises us any more.”

And of course, none of this is covered in the mainstream media or by our “dear” politicians.

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EU a stupid empire on purpose

21 maj, 2012

This is one of the best and succinct descriptions of EU I have seen:

“The European Union is like a hospital where all the doctors are mad. It doesn’t matter what is wrong, the treatment is always the same – more integration – and it is always wrong. The best thing to do is never to enter it.

Once you are in, the best thing to do is to leave. If you can’t get out, you will probably die.”

I disagree with one thing this author says: “EU is the Stupid Empire”. EU is a POLITICAL project. The Euro is part of that political project.

A lot of  EU’s decisions make no economic sense whatsoever. In that regard, Peter Hitchens observation that “EU is the Stupid Empire” is completely right.  Not to mention the enormous cost to the common people of all these political motivated but economically disastrous decisions.

The economic side was always a way to “sell it to the people”. Step by step. So that the political agenda could be slowly, but steadily implemented. Until it was too late. The political elites new ALL along that had the EU project been presented to the people for what it really is, people in ALL countries would have rejected it.

BUT EU was on purpose designed this way. So that the people could not stop this political project.

Never forget that ALL the political elites, irrespective of party or ideology, in the EU countries were behind this. With very few exceptions.

One small example, before the referendum on the Euro in September 2003 in Sweden, ALL parties (with the exception of some communists, greens, socialists and some from the agrarian party, ALL big unions, ALL mainstream media, ALL the representatives of the business world etc was for the Euro. And they put massive financial and personal resources behind this.

But the Swedish people, wisely, rejected this with 56% to 42%.

In the latest opinion poll, December 2011, 87,6% of the Swedish people were against the Euro. 9,7 % for.

They planned this, and wanted this. And they kept on purpose this real ideology behind the EU project well hidden from their citizens in their countries.

They kept everything on purpose, including treaties, SO technical and juridical that it was totally unreadable for the common people. Like the EU “constitution”.

Just to give one example of how meaningless the local parliaments have become:

In Sweden 65 to 85%, depending of which area, of “decisions” made by the Swedish parliament HAVE ALREADY BEEN DECIDED IN BRUSSELS.

I.E. The national Swedish parliament is in reality rubber-stamping Brussels decisions and implementing them.

That’s all!

And they cannot change even one syllable in these decisions. So much for “representing” the will of the people.

But of course, they are not telling us that. They pretend that ALL these decisions are made locally by the Swedish parliament as the “sovereign” representatives for the Swedish nation. When in reality they can, to the most part, only decide the colour of their on toilets.

Some other EU posts here:

EU – an unaccountable mess created by an undemocratic treaty – Now also a crony Bankocracy

The scam that is called EU and the Euro is behind the present crisis

Who the Hell do You Think You Are: The Euro Game Is Up!

EU – an unaccountable mess created by an undemocratic treaty

EU – The aim of this treaty is to be unreadable and unclear AND it can not be understood by ordinary citizens

The New EU foreign minister – An undemocratic appointment to an undemocratic post created by an undemocratic treaty

EU- an expensive pile of festering rubbish, mired in corruption, surrounded by inept and impotent politicians

EU: s foreign minster performance so far – lacklustre and a pushover 2

The HUGE difference between EU and USA in response to Haiti.

EU: s foreign minster performance so far – lacklustre and a pushover

EU – The inner game and the Corruption that Cost £684 931,5 per hour EVERY hour EVERY day EVERY year. And is increasing

The EU Auditors have, for the 15th year in a row, refused to sign off the EU’s accounts owing to Fraud and Mismanagement in the budget

Peter Hitchens blog post here (my bold):

Why defeat an evil empire – and then embrace a stupid one?

http://hitchensblog.mailonsunday.co.uk/

”The European Union is like a hospital where all the doctors are mad. It doesn’t matter what is wrong, the treatment is always the same – more integration – and it is always wrong. The best thing to do is never to enter it.

Once you are in, the best thing to do is to leave. If you can’t get out, you will probably die.

Those of us who pay attention to history, politics and truth have known this for many years.

But as the EU’s ‘experts’ and ‘technocrats’ insanely destroy the economies ofGreece,SpainandItaly, it must now surely be obvious to everyone.

The EU, far from being a bright future, offers nothing but bankruptcy and decline.

If the old USSRwas an Evil Empire – and it was – the EU is the Stupid Empire. Obsessed with the idea that the nation state is obsolete, the EU has sought to bind its colonies tightly, while pretending they are still independent.

This is why what is essentially a modern German empire is not held together by armies, but by a sticky web of regulations and a currency that destroys prosperity wherever it is introduced (with one important exception, Germany itself, for whom the euro means cheap exports to Asia).

It is also why it has been built backwards, starting with the roof and ending with the foundations. Old-fashioned empires were at least honest.

They marched in, plundered everything they could cart away, killed or imprisoned resisters, suborned collaborators, and imposed their language on the conquered.

Other humiliating measures followed – forcing the newly-subject people to live according to the invader’s time, to pay special taxes to their new masters, to surrender control of their borders, to use the invader’s weights and measures, salute the invader’s flag and obey the invader’s laws.

Eventually, after a few years of imposed occupation money, set at a viciously rigged exchange rate, the subjugated nation’s economy would have been reduced to such a devastated and dependent state that it could be forced to accept the imperial currency.

The EU, which cannot admit to being what it really is, has to achieve the same means sideways or backwards. The colonial laws are disguised as local Acts of Parliament. The flag is slowly introduced, the borders stealthily erased, the weights and measures and the clocks gradually brought into conformity.

Resources (such as Britain’s fisheries) are bureaucratically plundered, giant taxes are  quietly levied, but collected by our own Revenue & Customs as our ‘contribution’, our banking industry is menaced.

Opponents are politically marginalised, collaborators discreetly rewarded, armed forces quietly dismantled or placed under supranational command. It is happening before our eyes and yet, while the exit is still just open, we make no move to depart.

Our grandchildren will wonder, bitterly, why we were so feeble.”

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EU – an unaccountable mess created by an undemocratic treaty – Now also a crony Bankocracy

4 februari, 2012

Irish economist David McWiliams, of Punk Economics, explains how EU has evolved from a democracy to a bankocracy.

In this illustrated video, he explains Europe’s (and US )’dirty little secret’ where economic policy is being run almost exclusively for the banks.  And the political elite are becoming more and more detached from the people.

I disagree on one point; EU was never a democracy in the first place. It was never designed to be that by the political class/elites.

The Euro was always a political project. That’s why “they” haven’t done the ”proper” economic policies. Because these policies would undermine the political purpose of the Euro. So they, the political elites of EU, are trapped. And that’s why the Euro was domed from the beginning.

How can broke economies lend money to other broke economies who haven’t got any money because they can’t pay back the money the broke economy lent to the other broke economy and shouldn’t have lent them in the first place because the broke economy cant pay it back”.

Even a 5 year old can understand this. But not “our” politicians and bankers.

See my posts:

The scam that is called EU and the Euro is behind the present crisis

Who the Hell do You Think You Are: The Euro Game Is Up!

EU – an unaccountable mess created by an undemocratic treaty

EU – The aim of this treaty is to be unreadable and unclear AND it can not be understood by ordinary citizens

The New EU foreign minister – An undemocratic appointment to an undemocratic post created by an undemocratic treaty

See also my posts:

How Obama loves the poor SOOO MUCH, especially the black, that they have had the largest single drop in income ever

The example set by the political class/elite and the riots in Britain

Why, Mr President, are you deliberately destroying the American way and committing economic harakiri?

                         Punk Economics: Lesson 1

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