Double Standards Again

As my readers know I have a low opinion of the ill-conceived Euro.

The BBC reports that the new €5 note is to include a drawing of a Greek Goddess.  Fine,  but why does the BBC refer to "a goddess" when it calls actresses "actors" and uses the stupid expression "Chair" meaning "chairman"?

Double standards and stupid political correctness.

I hate it: grrrrrr

Until the next time.

Cyprus II

Just a brief one this time.

Well as I'm sure you all know the Cypriot parliament raised two fingers (or just one if you're a continental) to the EU in regard to the proposed €10 billions bail-out; not one MP voted in favour.  This of course because of the fear of bank depositors receiving what is popularly known as a "haircut."

Of course the blundering EU can only blame itself.

Meanwhile there's a lovely little story about a very wise granny, who beat the threat,

Please read it - it's great!

Until the next time.

Cyprus - That is The Greek Bit

I feel obliged to comment on current events in Cyprus, since my hostility to the Euro project is long-established and probably well known here.

However, it's tricky.  I've been following discussion forums and there is a great deal of hysteria to wade through - and a lot of opprobrium directed at Germany.

It is true that there is a general election looming in Germany, which must be a consideration, but I suppose since that since Germany is more-or-less keeping the stupid Euro afloat then Frau Merkel is entitled to have a say.

Just recently Latvia signed up to the Euro; these people must be barking mad.

And Cyprus is a sort of Iceland writ large.  Iceland's recovery is progressing because they simply said "piss-off" to their creditors - or at least to their banks' creditors; when you're not in the EU you can do that sort of thing.  Cyprus's economy has been running a large deficit whilst the bloated banking sector is about eight times the size of the national GDP; worse, it is stuffed with Russian money about which there is said to be the whiff of the laundry.

All I can say is that I'm glad that I do not have the job of sorting out the mess; if Russia (i.e. Putin) is upset because the bank accounts of some of the president's pals have received a haircut, perhaps they'll turn off the gas tap?

A € for the meter anyone?

Until the next time

$8,500,000,000

The sum which forms the title of this piece is the amount of money owed by Greece to the United Kingdom; I do not know how much is owed by the UK to Greece.

Even these days, when we are wont to talk of "billions" when once we spoke of "millions," $8.5 billions is a great deal of money, though Greece's indebtedness to France, at nearly $40 billions must be very worrying for the French.

I see that the Greek prime minister Mr Samaras, has remarked on "a breathing space" for Greece following the deal struck with the EU; Greece will now start to receive its next "bail-out" - which will total in excess of €40 billions, 23 billions of which will go to re-capitalising Greek banks.

Apparently part of the deal includes Eurozone creditors writing-off a substantial proportion of Greece's debt which currently stands at about 180% of GDP.  We must feel sorry for the French who will obviously be hit hard by write-offs. I have been very critical of all UK governments over the years, but I must acknowledge their wisdom at least in keeping us out of the accursed Euro.

It would be interesting to know who in his right mind would have loaned money to Greece in the first place; it is well-known that Greece massaged its accounts (i.e. lied) in order to gain entry to the Euro - back in 2001 - and the availability of low-cost loans in consequence have served to compound the country's insolvency. One must assume that presumably armed with such information, the lenders were in charitable mood at the time that the loans were made.

If they are still in that frame of mind, I wouldn't mind taking out a large loan myself - one that they can write off after 11 years.

Until the next time

Bright Future for the €?

Like many, I have noticed gathering clouds around the European Single Currency, the Euro, with pressure building owing to the colossal debts of both banks and indeed, states.

Whilst living in England, which I did until five years ago, I was wholly opposed to the UK signing up to the Euro, and I believe that that was the correct view and now even more so.

So you might ask, why the title to this piece? The reason is pictured above; yes, Gordon Brown has suddenly appeared out of the woodwork after a few months' silence. This BBC article states:

'Former British Prime Minister Gordon Brown has told the BBC he fears the euro will face a "high noon" moment of reckoning early in the New Year.'

'"I sense that in the first few months of 2011 we [will] have a major crisis in the euro area," he told the BBC's business editor, Robert Peston.'

Yes, this IS the Gordon Brown who sold £15 billion worth of Britain's gold, which would probably now be worth £40 billion or perhaps even more...

So despite all the evidence to the contrary, I am now convinced that the Euro will soar in 2011!

Until the next time.

The Money Pit

There is currently a problem in the EU: that of approving next year's budget.

Officially, an increase of 6% has been requested, but MEPs are proposing 2.9% whilst according to this BBC article, a number of governments, in the throes of ruthlessly cutting their own budgets, are proposing leaving the EU budget at 2010 level.

I consider that to be more than enough given that the budget, according to this BBC graph, has increased nearly 40% over the last ten years:

As far as the UK is concerned, note the footnote about exchange rates. Using XE.com's useful historical chart, I find that in 2001 the pound stood at around 1.60 against the euro, very different from today's rate of 1.18. So in cost terms, the decline of the value of the pound has meant that the UK's contributions have become increasingly expensive, quite apart from the regular increases shown in the table above. Europhiles will blame this additional cost of course on the UK's refusal to sign up to the euro, but remaining with the pound has proved to be sensible, given the states of various European economies who have er, "benefitted" from membership of the Eurozone.

The BBC piece goes on to say that in the event of the budget not being approved (which seems likely) then the EU may not be able to afford to launch it's new diplomatic service ludicrously called the EEAS: The European External Action Service. The EEAS has been budgeted at €475.8 million. On top of the colossal corruption and fraud prevalent in the EU and widely reported for a number of years, who needs another 475.8 million wasted euros?

Please remember the case of Marta Andreason, former EU chief accountant sacked by the Welsh windbag, Kinnock - then an EU Commissioner, for drawing attention to financial "irregularities."

Kinnock and his wife did alright though: they weren't sacked, they're doing very nicely thank you very much. Gravy train 'socialists' the pair of them - like one of Kinnock's predecessors, Roy "Claret" Jenkins, Britain's worst ever Chancellor of the Exchequer and another EU Commissioner.

Will no one rid us of this parasitic nightmare?

Until the next time.

European Stuff

On 9th November, European President Herman van Rompuy gave in Berlin, the annual "Europe Address."

In the opening part of his speech he said:

"What is more, today is 9 November, a day of such exceptional significance in 20th-century German history. With its times of darkness but also of course with the joy of the fall of the Berlin Wall, so close to where we stand. The "Wall of Shame", the very antithesis of the legacy of Greece: democracy. At school I learned of Pericles' famous formulation of democracy in which "the affairs of State are not the privilege of the few but the right of the many"."

This is really rather tragicomical isn't it? Or have I missed something? Of course no-one except a few eccentrics I suppose, would like to see the re-establishment of the DDR for example and its repellent leaders such as Walter Ulbricht, nevertheless it was of course (in English) The German Democratic Republic, so as with the "Democratic Republic of Congo" in the words of Private Eye: "that's alright then."

Near the end of the speech Mr van Rompuy said:

"We have together to fight the danger of a new Euro-scepticism. This is no longer the monopoly of a few countries. In every Member State, there are people who believe their country can survive alone in the globalised world. It is more than an illusion: it is a lie!"

Very good Mr President; whilst I accept that Norway is a special case, owing to its oil wealth, good management and a small population, as I write this I am looking at Lake Geneva; I see no oil rigs and the desperate state of the Swiss economy (thanks of course to the Swiss population's democratic obduracy with regard to joining the EU) would of course be immediately ameliorated were the Swiss to sign up (ho ho). In this part of France, many of the French would simply love to have a job across the border - as many do.

According to XE.com, the Euro stands at 1.34049 Swiss francs. A year ago the rate was 1.50. As Bliar once remarked it is essential to be "at the heart of Europe." I wonder did anyone ask him why?

So Mr President I don't agree: it isn't a lie - at least in many cases - excepting of course those who have crucified themselves with the Euro - Greece, Spain, Italy, Portugal and of course Ireland. Of course the Euro isn't directly to blame for the world economic crisis, caused by greed and over-confidence and in certain cases I believe criminal activity, but membership of the currency with its strict rules (now largely ignored) cannot be helpful.

As for Ireland, the BBC report on rumours, not denied by the Irish government, of the country seeking bail-out from Brussels, includes some comment by one Joe Lynam in which he says:

"Now that talks have begun with Eurogroup officials, Ireland has the embarrassment of pressing ahead with day-to-day management of a country still officially Europe's third richest [...]"

Where did he find that piece of information I wonder? The table in this Wikipedia piece gives far more realistic numbers; especially interesting are the figures for GDP per capita for those non-EU members, Norway and Switzerland.

They cannot survive alone in the globalised world, can they Mr President?

Until the next time

UPDATE

Here's the latest from the BBC on the Irish economy and Europe.