Apr 01

It’s now clear the dust settles that the Cyprus bailout plan may be the worst that could be negotiated. It is worse than the one that the Cypriot MPs voted down. A plan that now looks quite moderate with 6.75 % hair cuts for small savers and 10% for larger deposit holders. as said before this is substantially below what Uk savers have suffered surreptitiously from artificially low interest rates and devaluation. Stealing money off large savers has at a stroke bankrupted and emasculated many small and medium enterprise (known as SMEs). It has killed much of the capitalism. It will not even be voted on. It is a kick in the teeth for anyone who bought the lie that work hard for a happy retirement as life savings are cut at a stroke to a 100,000 Euros. Continue reading »

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Jun 18

I guess if someone came along and said my dad or brother owed them money I might pay. If someone said my boss’ boss’ boss did the answer would be good luck. This would be my view if I was Greek or Spanish to German demands to re-enact something like the Treaty of Versailles on them. Continue reading »

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Nov 11

The Dutch and German economic commentators and Bank apologists like Darling are out in full force to tell Greece to take its medicine. Continue reading »

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May 01

For some reason mostly centre left politicians have in the UK been very pro Euro. Indeed the main anchor on the Labour party trying to get us into a single currency has been  two fold. Unpopularity and till it became a bad idea there was Brown’s 5 economic tests. This was typical Brownism an attempt to seem one way whilst doing nothing and I applaud it. The 5 tests could never be met.

Indeed it’s sad that Clegg and the Liberals still seem some mileage in a policy that is best ridiculed with the one argument that comes up holiday makers who pollute the atmosphere will not need to spend a fiver getting some cash in some countries.

What I have always had against the pro Euro camp is by and large they are like fans of a football club. The way they have inched us to European integration without seemingly any desire for it among populaces. Even when countries have negative plebiscites their results are disrespected and another one organised with dire threats from politicians and another one if that fails – sorry but referendums are not democratic as you are made to vote for something till you say what the Politicians want and then never get to vote again!

For me I am happy with a common market, a secretariat but see no need for the expense of a European Parliament which is yet more Brownian politics. It’s meant to be a symbol of democracy but ala Brownian projects it’s far too expensive and achieves very little. Most laughable because its elections fall mid term it’s staffed with anti EU MEPs from Britain. Look at voter turn out we just do not care for it.

What is bizarre with the Euro is how the Germans  would enter a currency and not insist on almost running the other economies. For a country that now rightly it seemed resisted the desperate Obama and Brown plans to to reflate their unsustainable bubbles Germany now finds itself having to prop up 5 weak economies who have thrown 2 fingers up to economic sense whilst sharing a currency.

Equally baffling about the Euro is why countries like Greece and Italy with their preference for inflation over decision making would want a strong currency. Thence their decline in competitiveness every year with a currency that cannot move to match – much like the rest of the UK has with a leeching City which after the bailout has contributed nothing to us over the last 20 years. The other side is of course no doubt in private Angela Merkel is glad the elephant that is the UK’s public debt is not on their currency either.

Smaller economic units make better sense to me. They can be more representative of local interests. However vested they are they beat national vested interests in the EU.

Keep the common market and co-operation on foreign policy. Dump the Parliament and stay out of the currency.

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