Belatedly, as usual, European Union (EU)’s President warns against US President elect divisive tactics to the detriment of the EU’s stability.

US President elect decrees are mostly unacceptable to the civilized world and a (very bad) first in US’s “governmental” (sic) policies, especially the now nearly universally decried anti-immigration decree which this blog is denouncing for the fourth day in a row.

EU has not managed to construct a “working” political, social economic and not even even financial area (the latter beacuse of the erratic policies of ECB) because it has done mostly everything wrong from the beginning of the instauration of the Eurozone and has also accepted totally disparate membership of 28 member countries who do not ressemble each other in mentality and usus and were prone to be a fiasco, which it is, being unable to agree on practically any important topic and subjecting some nations to undue austerity instead of pushing for badly needed structural reforms .

In the 2000 posts I have written in my blog from April 2011 until October 2016 and my two books I have consistently proposed and described the change from the current EU “mammoth” to a radically new compact European Guidance Unit with a division between Northern countries and Southern ones who have nothing in common, with France somewhat in the middle, and due to huge past erroneous political expansion policies continuing with the inadequate integration of ex-satellite Communist countries which have created havoc with totally different remuneration, taxation and social protection “policies”.

I now, finally, feel that this renewed construction of Europe is also doomed and that it is preferable to go back to a customs’ union and abandon the euro, thus leaving each country to devise its own political and social economic systems, own deficit and indebteness ratios to GNP and be able to take its own eventual financial corrective actions.

If individual countries are having such a hard time governing themselves, blocs of countries will not be able to do their job plus a comprehensive “area” job with an umbrella as the euro which was devised far too early and totally unprepared with countries who had no harmony whatsoever in basic social economic policy structures.

The world has changed enormously and in a meteoric way technologically / innovationwise.

Governances need to adapt to these formidable changes which is very difficult for what seems to be a “lost political generation”.

Lets’count on and turn to the current young one who is in phase with these changes, it’s  a worthwhile bet I believe (as a “senior”…)

Please read below, under More,  NYT‘s 01/31/2017 article:”Trump Threatens Europe’s Stability, a Top Leader Warns”

Read the rest of this entry »

This is the third post in a row on US President elect’s unprepared and obnoxious anti-immigation decree.

Anticipated personal conclusion:

My personal feeling is that, the US  being a very resilient country, “salvation” will gradually come from the “other silent majority” who did not vote sufficiently for the Democrat presidential candidate because of lack of charisma and modernity, in spite of having enormous experience.

Taking a step back, what has the President elect been doing during the last 11 days?

Signing, publicly in front of the media on TV, like the CEO  of a corporation in private, “memos”, i.e. decrees on all the enormities he has been saying for nearly one year and on which he has been elected US President with a considerable majority following the US ‘s electoral sytem.

Everybody knew what he intended to do and in spite of this he was elected (bis repetita).

Now he is doing it and many world leaders are stupefied and oppose these measures, starting by the UK PM who very  rapidly went to Washington to try starting to make a trade deal with the US, Brexit obliges, and “forgot” to oppose grotesque anti-imgration measures, and did so one day later due to many UK’s citizens’ indignation, no choice left…

This is how “the cookie crumbles” nowadays, protest after protest and what does the Republican Party do?

When a President is elected in the US, before being sworn into office, the election needs to be certified. In the House, a joint session of Congress meets and confirms the electoral votes for the candidates are authentic, and they are officially recorded.There is a procedure allowing members to protest the certification results and Democrats wanted to do that. The problem is, the signature of a Senator is required for any protest to be considered valid. Democrats did not get that signature.

Paul Ryan seemingly was smiling at Democrat’s failure to find the vote. Paul Ryan, 46 years old, Speaker of the US’s House of Representatives and a member of the GOP (Republican Party) is the Republican”star” politician, is he still smiling?

Unless the recent my elected US president starts backing off and reviews all the impossible decrees he has been signing, the GOP will be in due course of time “dead in the water” and since bi-partisanship has been notoriously inexistent for at least a decade in the US, the whole country will suffer from this “unreal show”.

Yesterday I wrote about Sylicon Valley top corporations and their executives’ protests, this might help, but let’s not forget that these huge corporations are great tax evaders too, and for sure they protest, they employ a lot of foreigners, and have a “voice”, their share of US GDP is considerable.

It would be great if one of these immensely successful executives enters politics as the newly elected US president did, we might have seen a different show with one of them.

Repetita: My personal feeling is that, the US  being a very resilient country, “salvation” will gradually come from the “other silent majority” who did not vote sufficiently for the Democrat presidential candidate because of lack of charisma and modernity, in spite of having enormous experience.

 

Re my today’s post:“US “Governance” by decree is showing immoral unacceptable facets”, Silicon  Valley opposes the US President elect on his anti-immigration decree, this opposition obviouly not being only dictated by humanitarian reasons, but also by their own corporations’ interests as following texts clearly show…

This is a confirmation that in a country like the US internal resiliency of corporations and individuals can be counted upon when faced with intempestive and irrational Governmental measures.

European Governments have shown their opposition to this decree with various degrees of “determination”, but once more no clear positions are taken by the European Union or the European Commission.

The press worldwide confirms this,what follows are excerpts published in the syndicated press.

Quotes

“The new technology industry, which recruits more foreign workers than the US average, is mobilizing against the decision of the new president of the United States.

Usually, Silicon Valley has a horror of political talk, but Donald Trump might well force it out of this reserve. This weekend, many CEOs or figures known in the new technology sector – Google, Apple, Facebook, just to name a “few”, have openly criticized the anti-immigration decree of the new President of the United States.

The latter temporarily prohibits the entry into the United States of nationals of seven countries to the majority Muslim population: Syria, Iran, Sudan, Libya, Somalia, Yemen and Iraq. The decision, taken Friday night, provoked numerous demonstrations around the major airports of the country. Several people from Silicon Valley attended. Among them, Sergey Brin, co-founder of Google and who himself immigrated to the United States after fleeing the Soviet Union when he was 6 years old. “I’m here because I’m a refugee,” he said at a demonstration at the San Francisco airport.

“Silicon Valley, far more than other industries, employs many immigrants. Foreigners accounted for 37% of the population of San Francisco and its surroundings, compared with 13.3% for the US average, according to a joint Venture Silicon Valley organization. This new decree is a direct and concrete threat to companies in the sector. The CEOs of Silicon Valley did not go so far as Sergey Brin. Most of them spoke through internal memos to their worried employees, via very calibrated press releases or by answering questions from journalists. All have held more or less the same discourse, affirming their attachment to immigration and the will to protect their employees.”

“Protecting employees
“I am sad to see how this decree affects our colleagues,” said Sundar Pichai, CEO of Google, who immigrated from India to 22 years. According to him, at least 187 employees of the company are affected by the decree. “We have always been very clear in our views on immigration policy, and we will continue to be so,” he added. Same speech for Tim Cook, CEO of Apple. “Apple believes deeply in the importance of immigration, both for our company and the future of this country,” he said in a memo to employees of the company. Twitter, the social network widely used by Donald Trump, expressed support for “immigrants of all religions”.

“Mark Zuckerberg, co-founder and CEO of Facebook, also issued a message Friday night on his page, saying he was “worried about the impact” of the decree. “We must ensure the security of our country, but we must do so by focusing on those who pose a real threat,” he wrote. He also recalled statements by Donald Trump in December, where he promised to “find a trick” to help illegal immigrants who arrived as children in the United States, some of whom have specific legal protections.”

“Statements, from several companies have also announced measures to help the persons subject to this decree. Google announced the creation of a $ 4 million fund for four immigrant rights organizations. Airbnb provides free accommodation for people unable to return to the United States. Lyft, a transportation application, said it would contribute $ 1 million over the next four years to the Civil Liberties Association (ACLU).”

“Most new technology companies are in favor of immigration and have been calling for years to reform the rules governing the arrival of foreigners on American soil. Mark Zuckerberg launched the FWD.us Foundation in 2013 to facilitate the arrival of migrant workers in the United States. This initiative is supported by Bill Gates, founder of Microsoft, Marissa Mayer, CEO of Yahoo !, or Drew Houston, CEO of Dropbox. At the end of 2015, Mark Zuckerberg and Sundar Pichai, CEO of Google, had criticized the anti-Muslim statements of Donald Trump, in defense of immigrants.”

“Some CEOs feel unfairly criticized”
Other companies have been more discreet on the subject, or even have been accused of complacency with Donald Trump. Uber was criticized for delaying canceling the automatic price increase of its application after the announcement of a New York taxi strike to protest Donald Trump’s decree. Travis Kalanick, CEO of Uber, expressed on Saturday his “worry”
Unquote

I have not issued posts anymore since July 11th, 2016: “Brazil and Argentina reaching bottom will Recover, Europe Sleeping since Decades…” and June 27th, 2016:“Eurozone Governance Radical Change Needed to get to a “2 Speed” Area Organization Eurozone Governance Radical Change Needed to get to a “2 Speed” Area Organization” , (the latter being a “hundredth” repeat of prior posts) because of useless repetitions of comments and concrete proposals on the decay of Goverance in the Occidental world and failure to implement social economic macro reforms, in over 2000 posts from April 2011 to October 2015  plus some isolated ones like this one when matters become inacceptable.

Below “More” at the end of this post I am fully quoting NYT‘s 01/29/2017 article: “European Leaders Reject Trump’s Refugee Ban as Violating Principles”

My Comments

I will issue this one post in protest against the newly elected US President who every day signs a new decree, where I believe (maybe optimistically) most of the content will be withdrawn shortly.

Only, that there are subjects which should be sacred even in this social media dominated era and this one refers to human beings persecution with No Discrimination and this is one is one where the (still) educated world needs to call a halt!

I have traveled to countries where religious “signs” were imposed on, my wife had to put on muslim clothing to visit beautiful religious monuments in the Middle East and complied with it because she was a “visitor”, but on the other hand it is totally unacceptable that “visitors” impose their way of dressing, behaving and even worse acting to our Occidental countries.

Laws have been issued to no avail, and, obviously, this includes all forms of imported terrorism.

The US  newly elected President who won the election by appealing to the  isolationist mentality which a majority of US citizens have always had considering their country as “the best”, not wanting interference from the rest of the world while trying to impose peacefully whenever possible their own way of living.

The newly elected US President thinks (?) that by signing these decrees he shows the world his own style of Governance determination in front of the manifest laxity of practically all European (non) governance.

Why can he do it?

Because he was lawfully elected by a very call it “conservative” section of the US population.

These are still call them “democratic” countries where the popular vote prevails versus dictatorship.

A President who has been elected since only weeks practiced a “hold up” on the constituency of his country, so its is up to this same (partisan and by partisan) constituency to reject whatever is morally (in the full sense of the word) reprehensive, the US has done so with Mc Carthy (only a senator – sic) in the past, the resilience of this great nation can do it again if so required.

So, allow a period of grace and if there are no real reversals of some of these abject policis as the one described after “More” by the NYT, initiate a legal process of dismantling this type of governance, bearing in mind that it was not originally imposed but freely voted.

Accordingly this is no criticism on the US as a country but on its Governance, and it is not the only one I feel has great shortcomings in the “Western” world, the “non governance and not existing guidance of the European Union is another great target if one relates to total lack of competence

I am badly placed to criticize the President of a country who has given me education, I passed an MBA in Oregon and worked succesfully with two highly reputed US corporations, one of  them being the most ethical one I have ever known.

Going to the “origin of evil” to dramatize, it’s all this “non governance” in the “West” which makes tiese call them “reactions” (for the time being) possible.

But, I will not repeat myself anymore, I have given it my best based on the “in situ” international experience I have acquired througout my international life wy writing respectfully but directly  and proposing concrete alternatives to this “Non Governance” in my  books

I have written on all this – 2014 / 2015 – in self-edition – Amazon – in two books whose titles are self-explanatory: Why Obsolete Macro Governance Is Killing the World Economy” and “Growth through Structural Reforms” (With Leadership and Competence Great Opportunities Exist).

Brazil and Argentina are reaching the bottom and will Recover, Europe is Sleeping  since Decades…

Brazil and Argentina, two very different countries with very different mentalities and character are probably near to reaching bottom, once more.

They are cyclothymic countries, always have been.

But, since they do not have accumulated wealth per capita they just have to React, since if they do not they are bankrupt in the true sense of the word. Brazil is “too big to fail” and Argentina is the second biggest economy in South America, but they have great chances of coming out of the hole before the next, say, five years.

Europe, better said the Eurozone has been sleeping for the last four to five decades except for Germany basically.

Since they will not become an integrated financial, economic, political area, they will continue “surviving” and their Central Bank, the ECB, is helping them to sleep with money at zero cost (actually negative interest rates!) which helps these weak Governments to have deficits which are not too big and “allows“ them (sic) to avoid making the badly needed social-economic Complete Structural Reforms. It is all artificial!

But, ECB is wrong from top to bottom, they induce higher indebtedness and the wealth (GDP) shown below is now a full debt since debt is equal to GDP in most cases. Central Banks work for Stock Exchanges

How long can this last?

No idea, since after studying and analyzing this situation since April 2011, writing 2000 posts in my blog and two books self edited with Amazon and which nobody reads because I have never written before, having been an international businessman with good knowledge of practical economy but not having  ”promoted” myself, my constructive and practical concrete alternative solutions have never been taken into consideration, and nothing of any consequence has been implemented, and in spite of very modest growth there is a social-economic regression in Europe.

Please have a look below at the disparity of GDPs per country and the wealth accumulated in the US and Europe – huge cushions loaded with debt…

 

GDP (*)  Population (**)

Per capita    (millions)

 

Worldwide     10 500         7 432

US                    54 629            321

Germany          46 836             85

UK                     46 297             64

France               44 312             67

Italy                   35 704             62

Spain                 29 937             48

 

Russia                15 537            142

Japan                 38 552           126

Iran                      4 997             81

 

Brazil                 12 260           204

Argentina         14 740             43

 

Indonesia            3 667          256

China                   6 995        1 367

India                    1 479        1 252

(*) Source:  Knoema.com – 2015 – GDP at current prices – in US$

(**) Source: Infoplease – 2015

 

I am referring to my 06/25/2016 post: “Brexit not End of “World” but Hopefully End of EU Non Governance”, I am herewith repeating a concrete proposal made X times in my blog for a two-speed Eurozone to be installed instead of the past and current obsolete Eurozone Commission “organization (sic) of a 19 countries potpourri and a not decisive anymore Germany-France axis.

This “radical change proposal” is not due to the Brexit but to the decades’ long inefficiency and indecision of the EU and Eurozone’s “Governance.

The Brexit now happened and long exit negotiations will start on October 2016 and will last for 2 years at least and more. We will once more see how all the already announced  meetings will come out with zilch since everything is based on improvisation as usual.

Several forms of partnership with the EU exist, with varying degrees of integration. But none really are suited to the new situation created by the Brexit

The European Economic Area is not interesting for the UK since it would have to comply with EU legislation, neither is the “Swiss Compromise” and falling under WTO rules is not acceptable to the UK.

Therefore long negotiations might end with a revised free trade area scheme and other important mutual cooperation items  to be included in a series of bilateral country agreements.

In my blog and my September 2014 self-edited Amazon book on Eurozone “Governance” (“Why Obsolete Macro Governance is Killing the World Economy”) I made concrete proposals on how the Eurozone  could gradually reach social economic integration and accordingly  function efficiently. I will only include here the call them highlights:

I formulated my proposals by including a “modus operandi”, like with private corporations’ organization and inter functional “instructions”…

This Eurozone restructuring proposal needs to be understood as referring “only” (sic) to the social (including education and training) – economic and financial topics in Eurozone “Management”.

It does not extend to all the other ”regal” governmental areas, such as the major areas of health, defense and military, interior, foreign affairs, etc…

Instead of being an Organization which gives “Directives” to member countries, the Eurozone “Governance” should be reflexive, pro active, involved in “the “field” with local governments, in summary act as an executive counseling unit.

 From an “operational” standpoint, the 19 Eurozone countries should be divided, at the beginning, into 2 categories of countries:

–  “Speed 1 “ countries, these being the most performing countries, which are Germany, The Netherlands, Finland, Austria, including Luxembourg which is very ”atypical”.

 –  “Speed 2” countries, these being Belgium, Cyprus, Estonia, Greece (*), Ireland, Italy, Latvia, Lithuania, Malta, Portugal, Slovakia, Slovenia, Spain, to which I add France, the 2nd biggest Eurozone country, but whose future is quite uncertain for the time being.

(*) I have felt for a long time that Greece should have exited the Eurozone long ago, this would have been beneficial and far less costly to both the Eurozone and Greece itself.

If a corporation had kept a product which did not “make it” for years, it would have suffered considerably, and would have had to sacrifice putting adequate resources on their existing “good“ products” and eventual projects on ”new” products, running also the risk of lacking adequate financing for the whole corporation, this goes back to the famous and still actual BCG method of the 60’s of the ”golden cow and the rest  of the ”animals” (products) and what to do  with them…

Instead of having lost all this time and money, the Eurozone Governance (?) should have had positive discussions with the UK, second biggest country in Europe and 5h biggest economy worldwide which has been increasing its GDP and decreasing unemployment substantially.

1. Operational Social-Economic decision making organization and modus operandi

“Speed 1” countries will commit to transitionally financing “Speed 2” countries, under certain conditions, and mainly under a totally different reciprocal communication “methodology”, under the supervision, control  and follow –up of a new and compact Eurozone Central Governance Unit.

– All countries must prepare short (1 year), medium (3 to 5 years) and long-term term (above 5 years going up to 10 years) strategies, clearly defining priorities.

– All countries need to define Operational plans – short and medium term (see above)

– All countries need to determine their Financial Needs plans – short and medium term, based on operational plans

The Eurozone Central Governance Unit needs what private corporations call a “Controller”, which in macro terms should be called a Eurozone Minister of Economy, who reports to the “General Manager”, that is the President of Eurozone‘s Central Governance Unit.

This Eurozone Minister of Economy will head the Social-Economics Council, where the main responsibility is furthering job creation and reducing “official” unemployment and even more so under employment.

In private corporations, the Controller has reporting to him/her a “Planning Manager” who is knowledgeable of all “functions” of the corporation, to accordingly coordinate the various activities, and enable this function to plan effectively on a corporate basis to help build Operative corporate planning.

In every Eurozone member country’s government this function should be filled by the Budget Secretary reporting to the country’s Minister of Economy.

The Eurozone Economy Ministry includes under the Eurozone Planning Manager’s supervision: “country social – economic counselors” assigned to specific Eurozone Member countries.

In private corporations, there exists a “Human Resources Director” who reports to the “General Manager.”

In every member country’s government this function is that of the Minister of Labor, who reports to the Prime Minister.

This Minister of Labor function needs to be far more liaised with the Minister of Economy, and be closely related to the Budget Secretary, who needs to prepare, analyze and follow up on the country’s budget/plan. This is necessary in order to integrate the analysis of Job Creation and various forms of Unemployment and Underemployment, which are the top priority factors to be improved, into the Operational Planning of the country.

2. Financial modalities and decision making which are required to finance agreed upon strategic and operational plans.

The Eurozone Central Governance Unit needs what private corporations call a “Treasurer”, which in macro terms could be called a Eurozone Minister of Finance, who reports to the “General Manager”, that is the President of Eurozone‘s “Governance”.

The Eurozone Minister of Finance will head the “Finance Council”.

The Eurozone Finance Ministry includes under its supervision: “country financial counselors” assigned to specific Eurozone Member countries.

This pragmatic social economic and financial Eurozone Central Governance Unit organization is what will make for a dynamic, hands on, pro active, ”in the field working” and “managerial” relationship between the Central Eurozone Governance Unit and the various Eurozone’s countries ’governments.

It will have the great advantage of implicating – constantly – and giving responsibility on an individual basis to Eurozone’s countries’ Prime Ministers: Economy, Labor and Financial Ministers, and to their Governments obviously (Prime Minister and President).

This whole organization is extensively developed in my above cited book.

Read the rest of this entry »

Brexit is not the end of the world but it should (?) be the end of (continental) Europe as we have known it since the EU developed into a 28 nations potpourri and the Eurozone was badly created not starting by harmonizing tax structures and social protection system.

The not handling of the (poor) Greek situation is a perfect demonstration of the total inability of the bureaucratic and inefficient EU and Eurozone Commission “Governance” (sic) to not only solve problems, but (mainly) to provide guidance.

Greece, less than 2% of Eurozone’s GNP was the tail that wagged the dog. The populist Syriza party who with Tsipras won Greek elections on January 2015 (18 months ago) with a populist and unrealistic platform and ever since was given far too important and continuous attention by the EU (as usual), France, Germany, etc… and by ECB and IMF, costing every day more to the Eurozone taxpayers, when it should have been exited from the Eurozone at least 6-7 years before.

This undue and pernicious laxity and indecision favored immensely the eclosion of populist parties all over Europe.

The cries of victory from europhobe parties in (by order of GNP importance)  France, Italy, Spain, the Netherlands, Austria, Denmark (even Germany with AFD), etc… is not due to Brexit but was well preceded and “contaminated” by how Greece got and gets away with totally unacceptable behavior showing the huge limitations of EU and Eurozone “Governances” leaving the door open to populist “ideology” (sic).

These populist parties are or will demand the organization of consultations / referendums to exit their countries from the EU.

Europe enters a long tunnel of elections. The Spaniards are voting Sunday to elect their MPs and the election could favor Podemos, the party of the radical left hostile to Europe of austerity advocated by Germany. The Italians will be as follows in October with a referendum on the proposed reform of the Italian Constitution. The decision of Prime Minister Renzi, to transform this consultation into a plebiscite and resign if it fails will favor the populist 5 Star Movement (who gained two major successes already by obtaining Rome and Turin governance). The legislation in the Netherlands in March 2017 and the presidential election in France in May 2017  will also show considerable growth in representation of populist movements (PVV in Netherlands and FN in France). 

The inadequate austerity policies which Germany had tried to impose in 2013 instead of pushing for complete social economic structural reforms (which Germany had to a great extent accomplished since the beginning of the XXI century) created further strong disagreements between disciplined Northern  countries and lax Southern countries including France, the champion of budget laxity and “no reforms”…

This helped to create denials of solidarity in rapidly mounting indebtedness favored by ECB’s irresponsible “policies” putting the cart before the horses with money flooding, which now includes negative interest to banks, to push demand. Moneys mainly used by the “rich” companies and by nations to increase indebtedness, and little used by SMEs who employ 95% or more of the working population, which clearly shows that ECB, and Central Banking in general, have no policies to diminish effectively high unemployment, and mainly underemployment.

Now the EU and openly France, through Hollande’s declarations, want the UK to nominate immediately a new PM and not wait until October 2016 as Cameron declared. Why? Because the EU is afraid that more member countries might want to abandon the Eurozone, the real reason that could provoke this being the totally inefficient Governance of the EU and the Eurozone Commission and Germany’s parochial and selfish policies which make this country unfit to “indirectly govern” the Eurozone.

It will take well over 2 years to negotiate the Brexit and a number of bilateral agreements will see the day because intra EU – UK trade is not going to stop

I only wrote seven posts since October 2015 because it became too monotonous to write all the time the same comments with nothing happening because of the Governments’ obsolescence in general and the  total inability of the Eurozone “Governance” (sic) to reform macro social-economics in this supposed “common interest” area.

This may seem an arrogant statement but I have written 2000 posts from April 2011 until October 2015 and made a great number of concrete alternative proposals not limiting myself to criticism.

I have also written – 2014 / 2015 – in self-edition – Amazon – two books whose titles are self-explanatory: “Why Obsolete Macro Governance Is Killing the World Economy” and “Growth through Structural Reforms” (With Leadership and Competence Great Opportunities Exist).

The motto now is to reform Europe  social economically and contemplating huge migrants problems to “regain strong support of citizens” because “we must listen to the voice of the people rather than the Eurocrats – nice wording.

How? By successive meetings as usual, first (Monday, June 27th), between Germany, France, Italy, the Eurozone three top economies GNP wise and one day later by the  Council of the remaining 27 EU members. Nothing will come out of these unprepared (as usual) meetings…due to past and mounting cacophony.

The “future of Europe” (sic) is supposed to be played in Berlin, with lukewarm Merkel facing its – Germany – responsibilities (as usual). Some of the main European “leaders” (sic) will meet in Berlin on Monday, June 27th, around the Chancellor: EU Chairman Tusk, at first, and then, later on, Hollande and Renzi. They will prepare “all the response” (sic) that will be discussed next day at the European Council with two objectives: to prevent the risk of contagion to other member states tempted by an output and offer the prospect of a rebound for Europe (which is totally unprepared and will have no effect whatsoever).

Already the fight for predominance has started. The Elysee Palace announced Friday night that a first working dinner on Saturday (today) Hollande and Renzi will meet and Tusk will be “received”on Monday morning. The configuration of these meetings go beyond the traditional Franco-German axis, it reflects a competition between Paris and Berlin on the leadership of future discussions. The differences between Paris and Berlin on the future of the EU, the political weakness of the French head of state and criticism about the German Chancellor object to its policy in Europe are not likely to facilitate dialogue.

Merkel advocated  to “analyze calmly and wisely,” the consequences of Brexit. The procedure will be opened in the name of Article 50 of the Treaty “will last several years,” said the pragmatic Merkel, noting that by then Britain “remains a member of the Union” and was held by its commitments. If the Chancellor wants to warn PM Cameron’s  future successor against any unilateral decisions, it also intends to preserve the economic interests of Germany and of the EC. A hasty breaking might frontally affect the economies of the EU.

Growth, employment, intra-European financial solidarity, the influx of refugees, borders or defense, etc…, these are the main subjects which Merkel and Hollande are now on notice to discuss after a decade of immobilism. Then comes the headache of a possible (?) reconstruction of the EU, without rushing Twenty five capitals, now that the exit door was opened in the UK.

Is this the beginning of the end for the European Union?

“No!” Replied curtly Juncker, the most prominent figure of the Brussels “bubble”. Continental Europe is facing an earthquake, but the reflexes of eurocracy die hard.
Brussels had fallen asleep with the first estimates favorable to the British “yes”, but next morning, Friday, it awoke paralyzed by the “no” numbers. In shock, it tried all day to keep itself in countenance, with obsolete formulas. Whatever is officially said, no one doubt that this is now a matter of survival for the EU. Tusk, Chairman and organizer of EU summits is coming closer to the truth: “The situation is serious, it is very dramatic. It is impossible to predict all the consequences. (…) But what does not kill you makes you stronger in the end”.

An EU summit will convene at twenty-seven, without UK’s PM Cameron. This is the end of a long denial, a break with the legal fiction that the UK would remain a full member of the EU until the divorce is legally sanctioned, by two years.”This means that London is no longer associated with the decision says Martin Schulz, head of the European Parliament, a few journalists. The EU is determined (?…) to quickly turn the page and to proclaim to the whole world. “Europe wants to act quickly”. It would be the first time since the Eurozone was created…!

To avoid being “dismissed” the EU and the Commission request European country “leaders” to demand that the UK notify formally and immediately its intention to leave the EU, without waiting for October 2016 as declared by Cameron. “Outside, it’s out!”: the official slogan of the continent in a loop. “There will be no new negotiations” with London, confirms the European declaration.

The EU political priority is clear: avoid a chain reaction and counter what Hollande euphemistically called the “dilution” of the EU. He could have said dissolution…

The real threat to the unity of Europe from the North and the rich countries, who feel they have already given too much and could give, like the British, the temptation of isolationism.

The Southern countries have paid great social costs to their financial collapse since 2008 without reforming themselves socially economically, the big error!

Eastern Europe shows its rage at the uncontrolled influx of refugees and migrants. 

For most of them, the EU does not respond to the promise of its founders.It became a heavy techno bureaucratic non administration, a threat to their prosperity. The British drew the conclusion with Brexit.

What might, slowly and finally, be emerging sometime in the future is a two-speed Europe, this being most worrying to the Eurozone Commission since their jobs would be at peril – a Godsend should it happen!

In a nutshell it is what I have been “proposing” since April 2011 accompanied by this blog’s concrete alternative and practical “solutions”.

 

I have not been writing any posts since 9th February, 2016 because it became too monotonous to write all the time the same comments with nothing happening because of the Governments’ obsolescence in general and the  total inability of the Eurozone Governance (sic) to reform macro social-economics in this supposed “common interest” area.

This may seem an arrogant statement but I have written 2000 posts from April 2011 until October 2015 and (only) three posts since October 2015 and made a great number of concrete alternative proposals not limiting myself to criticism.

I have also written – 2014 / 2015 – in self-edition – Amazon – two books whose titles are self-explanatory: “Why Obsolete Macro Governance Is Killing the World Economy” and “Growth through Structural Reforms” (With Leadership and Competence Great Opportunities Exist).

I am now quoting entirely the Express.co. UK’s 06/11/2016 article: “Eurozone heads towards its next monetary crisis” and showing it under MORE at the end of this post – you can also read it by clicking on above link.

This article, in a nutshell, relates to the incompetence of the EU and to the current domineering subject: Brexit or no Brexit, leaning heavily on the Brexit side.

My Comments

The only reason I am writing this short post is because of my continuous (5 years) largely repeated total disagreement with Central Banking dominant positions and “policies” (sic) in  the US, the Eurozone, to “limit” myself to these two huge areas.

The below cited article touches on the disgraceful “policies” of the ECB, which is trying to be  even worse than the FED (a real challenge!…) .

Last year I tried to be published by a traditional large and well known publisher in the UK / US and since they could not use the material in my two self-edited books with Amazon I wrote 100 pages of an eventual third book which I had entitled: “Structural Reforms Impeded by Central Banking”.

This was refused and the main reason was that it was not “classroom material” and that it was “iconoclastic”. I refuted the second point by arguing that there were no idols to be destroyed but that long awaited strong (not “reformettes”) social-economic structural reforms were not being achieved because of , in general, Governments ‘ ineffectiveness and Central Banking flooding markets with printed money at even negative interest rates by ECB, which made it easier for most ineffective Governments in the Eurozone to avoid implementing social-economic structural reforms, and by the same token to increase already huge indebtedness.

Now, Dragui, one of the big culprits that the Eurozone is not really getting out of recession, wants to initiate “helicopter” money flooding (see below article) to push demand (hopefully a joke?).

It suffices to observe the situations in Greece (the total absurdity, it should have been exited long ago), Spain (contaminated by the Greek situation and the popular new “Greek type” political parties’ expansion, with no Government since months), France (continuing going down the hill because of no capacity to reform itself), etc, etc…!

Conclusion: Nothing basically changes and if so it is for the worse – relatively.

Read the rest of this entry »

 

As repeated a”thousand” times (*) in this blog Central Banks work for Markets and to Save “Big Banks Too Big to Fail”.

Central Banks are “Independent”, they do what they want!

Point in case now among many others in Europe: Italy (Big talker Dragui’s home)

Italy is in the middle of a very severe Bank crisis due to “Bad Receivables” which produce “Bad Debts”, which will remain unpaid.? But, surely the ECB (European Central Bnk) will print some more  to “save them” (ECB always “saves” somebody, until they go under…).

Mr Dragui “interrogated” (!) Italian banks as to their Bad Debts’ situation (which is a record 17.5% – Eurozone’s average seemingly (?) is around 5% – and represents 200 Billion euros!)

ECB should have “known” way  ahead all the facts of this essential economic / financial data and taken appropriate action, several “gimmicky “remedies – like “bad banks”…had been considered.

Real  economic steps are to provision realistically bad debts (and tighten banks’operations and remunerations, like is done with private corporations), but ECB (and EU / EC) do not want this, they seemingly (?) prefer to increase banks’ capitalization, which would require more “money”, which ECB would print and “save ” the banks…

These would be the “normal procedures” (sic), those which have cost the Eurozone trillions, it is called “fleeing into the future” (“la fuite en avant”) and wait for “miracles”…

One really wonders what ECB does, apart from issuing trillion QEs?

The ECB is 200% responsible for the huge increase in Eurozone Indebtedness and wanting to “solve” all matters with Trillion QE’s. Pushing Indebtedness in a non controlled banking system is “asking for it”, and the result is pushing “bad loans” and getting “bad debts”.

ECB did “not care ” to make sure that the Banking System was Operating correctly (that is not “sensational” enough for Mr. Dragui!), not that strongly increasing Bad Debts might cause another “Bubble”.

ECB has not done their job in accelerating the Eurozone Banking Union and really Controlling private banks operations!

I will not even mention Brussels’ EU or EC, they do nothing!

(*) I have written 2000 posts since April 2011 and stopped (I write an occasional post like today when matters get out of hand) my blog in October 2015 because there was no purpose to continue writing.

I have written and published 2 books: “Why Obsolete Macro Governance is Killing the World Economy” (Amazon- September 2014) and “Growth through Structural Reforms” (Amazon – April 2015). I had written over 100 pages of a third book, temporarily called: “Central Banks Impede Structural Reforms”, sent this text to 5 big publishers and was refused because it was not a “text book” and also was considered “iconoclastic !

Nobody really want to know…

 

 

European “Non Governance” and tremendous and expensive Bureaucracy has done Nothing for Decades and needs to be Removed entirely, if not like Garcia Marquez said, it is: “An Announced Death”.

I only write sporadic posts here since it is useless to try to propose meaningful and significant changes….

I have been writing  on Football (Soccer) since October, 2015, more amusing, but only to some extent; due to all the problems related to now, Football’s “Governance”… – FIFA’ and its longstanding and huge Corruption, my blog being “footballgreatest.com”.

Photo – Prime Minister Matteo Renzi

Follows a translation made by me of Le Figaro’s Premium’s  01/22/2016 article on young and exceptionally “productive” Italian Prime Minister Mario Renzi declarations on Europe: “Fed up with Europe, Matteo Renzi denies arguing for the sake of politicking”.

I subscribe nearly completely to Renzi’s declarations, after having written 2000 posts and two books with self-explanatory titles: “Why Obsolete Macro Governance is Killing the World Economy (September 2014 -Amazon) and “Growth through Structural Reforms” (April 2015 – Amazon) on this subject since I created my blog in April 2011.

No serious and complete Structural Reforms were made (only “reformettes”), total real unemployment ( including under employment) is still huge, instead Indebtedness is astronomic thanks to totally erroneous accomodative (interest and quantitative wise) Central Banking “policies” (sic): ECB (plus FED, Bank of Japan, Bank of China, etc…), growth being far too slow and solely dependent on record low Oil prices (which are killing the oil related economy) and which will not last, the banking system is preparing is umptieth – Oil and Assets – bubble, the euro exchange rate is nearly at bottom and will not last, Migration problems are not tackled (Germany is totally wrong!), if this continues the UK will exit – “Anything Else” ? – Woody Allen‘s film.

Photo – Woody Allen in “Anything Else” – 2003

Quotes – My comments in italics – in the text

Budgetary flexibility, European investments, management of migrants, state aid, banking crises, EU funding for Turkey: the grievances accumulate between the Italian leader and Brussels.

Migration policies, review of the Dublin and Schengen agreements, state aid to banks in difficulty, flexibility of Public Accounts: the violent diatribe which set fire to the powder a week ago in the relations between Matteo Renzi and Jean-Claude Juncker has its origins in a variety of long-simmering grievances.

Paradox of a leader whose impeccable European credo gave his Democratic Party 8,000,000 votes in the elections of May 2014 in the Strasbourg Assembly, which now feels despised to the point of accusing the European Commission of “two weights, two measures”.

A reconciliation should profile his trip to Berlin on January 29, and then the arrival of Juncker in Rome. Inevitably, it will probably not be painless for Europe, nor especially for Italy.

The Italian prime minister denies being “an argumentative polemicist or politicking”: “Europe is in a crisis of identity, everything has failed. It must change. We have our proposals and our allies are not lacking. Brussels is not infallible, “he said. His Secretary of State for Europe Sandro Gozi adds: “Some in Brussels want to send the revision of institutions after 2019, with the future Commission. Such a long period is one that Europe cannot afford anymore. ”

The most heated debate concerns the € 3 billion promised by the EU (i.e. Germany – who continues to lead the Eurozone – My Comment) to Turkey for its help curb migration. Matteo Renzi threat to suspend the Italian contribution to this fund and asks that all aid to Turkey come from the regular budget of the Union.

On the pretext that Ankara would not give sufficient guarantees on its allocation to migrants. Massimo Franco, a columnist for the Corriere della Sera, “this negation by Renzi for a Turkey fund is being used to relegate Matteo Renzi in a corner and shows a European exasperation against him that he should not underestimate (in other words: “Renzi, shut up!”- my comment).

Disagreement still on the destination of the 40,000 migrants landed in Greece and Italy and that should have been distributed in the rest of Europe. The July 20915 agreements remained unfulfilled.

Italy also calls for an urgent revision of the Dublin agreement to regulate migratory flows. Dutch Prime Minister Mark Rutte, who chairs Europe for six months (who is implicitly agreeing with Germany, so far… ,my comment) the fund immediately approved the Turkish funds and request to accelerate the implementation “too slow” in its discretion, also to do so with the “registration centers” (“hotspots”) which collect the fingerprints of migrants to their landing.

Other sticking points: the public wants assurances that Italy finances its troubled banks, despite the threat of infringing Brussels procedures…. Or, the absence of the distribution of the European investment program that Matteo Renzi despairs of seeing happen.

And, above all, the ‘flexibility’ public accounts (0.2% of GDP) that Italy asks Brussels as a “due” to address the additional expenditure incurred by Italy to host 180,000 migrants the last year and probably as much this year (This is where I diverge, if all countries want subsidies for Migration problem solving, Brussels needs to create a Special “Migration”fund with Savings made in Brussels – an impossibility for “immobile” Brussels! – Needless to say – My Comment).

These debates have revealed a certain isolation of Italy on the European stage. None of the major leaders has added its voice to the protests Matteo Renzi. Commissioner Pierre Moscovici (a “clown” – my comment) considers “unfair” to criticize Juncker. And (even – contaminated…, my comment…) Italian Federica Mogherini, High Representative for Foreign and Common Security Policy, “Ms CFSP” has quietly sided with the President of the Commission (Juncker).

The accused (Renzi…), however, as some in Europe to speak up for the purpose of domestic policy, to cut the grass under the feet of the M5S and populist Northern League, seems reductive. In Parliament (Italian), government reforms are all adopted one after the other with a comfortable majority.