The European Crack-Up…

For an excellent primer on the current state of affairs re the EU please, please, please, click through to Theodore Dalrymple’s: The European Crack-Up

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13 Comments

  1. Raji says:

    This article explains why the Euro debt crisis is effecting us so much. If you analysis the rise and fall of Jon Corzine and MF Global which was heavily invested in sovereign debt you can equate the two. The media focused on the missing billions of dollars rather than the extent of high risk investment which was allowed by regulatory changes in 2000. Corzine did not believe the European Union would allow any members to fail.
    http://www.bloomberg.com/news/2011-11-29/corzine-pushed-fatal-europe-be

    Like the mortgage bubble, hedge funds are basing investments in sovereign debt on the fallacy that poor people/countries will pay their debts. They still believe in the concept of “too big to fail”

    Dalrymple’s summation describes America to a “T”

    “In short, the incontinent spending of many European governments, which awarded whole populations unearned benefits at the expense of generations to come, has—along with a megalomaniacal currency union—produced a crisis not merely economic but social, political, and even civilizational.”

  2. Tex Taylor says:

    Remember Raji. The European model revealed here in Obama’ inspiration for America. And that is exactly what the last three miserable years have pushed America towards.

    Perhaps that helps to briefly explain why I think about a third of America woefully uninformed, the left informed simply stupid. 😉

  3. Alfie says:

    Thank you Raji that is indeed an excellent read. I find it covers all the points.

  4. Alfie says:

    On follow up I find the bulk of Kotkins piece to provide some excellent points. I twinged a little on page 2 where he veers into the critique of Obama since I felt it detracted from the original theme. Britain indeed does not need the EU. The EU which with every passing day cements its ideology inot Core Europe with Germany and France bickering over who is top dog. Ala Carte it is the Germans
    Anyway the EU has on its short,medium and long term agenda the/a Tobin Tax this is an essential wedge for the Brits and soundly so. As London continues to envision itself as THE finance capital of the world (see the desire to become a Remnibi trade site) distancing themselves from the Core Europe crowd and embracing the Anglophones of the globe is indeed the right path for England. hell except for oil/gas loss cutting Scotland free is a plus. New ally less headache rule Britannia….

  5. Raji says:

    I guess Kotkins couldn’t resist throwing in the return of Winston Churchill but I agree it did detract. Although I think Winston would be happier in England.
    So do you agree Germany is the new China?
    France is going ahead with the Tobin Tax independently?
    “Sceptics submit that a Tobin Tax would require worldwide adoption in order to be effective; its partial adoption by single governments – they argue – would only transfer their capitals to tax-free markets.”
    So are you saying if London envisions itself the finance capitol of the world, they will do with the pound what China did with the value of the renminbi i.e. devalue to increase competitiveness?
    Lots to ponder here.

  6. Alfie says:

    In some sort of order:
    Yes Winston is probably happier back home.

    As of some of that latest I’ve seen both Merkel and Sarkozy are for some type of financial transaction fee/tax. The former recognizes she is in for a fight in Berlin on that one the latter,well lets remember even if he doesn’t get reelected if the Socialists take the win they must like the idea non?

    I agree that the tax can’t work and even though the Core Europe folks want to believe in it the move by Cameron is pretty clearly an indicator of how one player out can draw the $or should I say € away. the fallback as I understand it is that the home countries of traders will then tax the money that leaves the country.

    As for London specifically the City they are indeed arguably the financial hub of the world. My comment about the remnibi can be better understand with at least this as a backgrounder,there are many other news sources,in fact I originally saw it in the online subscription of Financial Times,
    http://dealbook.nytimes.com/2012/01/16/london-wants-to-tap-chinese-currency-market/

  7. Alfie says:

    Of course the Chinese have a plan of their own regards building up Shanghai
    http://news.yahoo.com/china-shanghai-worlds-yuan-centre-2015-032659380.html

  8. Raji says:

    Thanks, Alfie. That link was very helpful. It reinforces my understanding that the global financial world revolves on it’s own axis regardless of the global political scene. I was not aware that the remnibi was such a viable market that effected the western world. Your second link is interesting in that China would have two financial hubs vis-a-vis New York and London if Shanghai develops.

    Fascinating isn’t it that in this country we only fixate on the value of the DOW, an indicator of just 30 stocks to determine which direction the wind is blowing.

  9. Tex Taylor says:

    I don’t want to ruin Alfie’s board with thousands of irrelevant videos. But sometimes,a video is worth a thousand words.

    Tell me you can’t hear Poolman reciting this bastardized verse of the pledge of allegiance while they burn the American flag. Has it all: Imperialism, Jew hatred, disdain for capitalism, victimhood, American hate. Takes all of 29 seconds.

    There’s still libs at Rutherford’s blog supporting these thugs. I’m not kidding. That’s how screwed liberalism is – and OWS epitomizes it.

  10. Charlie says:

    Interesting post. I particularly agreed with the Kotkin article. We Brits have spent the past half century practically ignoring Europe in the vain hope that it would go away; pretending that we’re not really part of it. We don’t really even consider ourselves to be European.

    We should ally ourselves closer to the nations we share a common heritage and culture with. I have never understood why we cut ties with the old Empire (Commonwealth) to cosy up to the Europeans. It was a nasty slap in the face to our friends, and we’ve gained nothing but high taxation, needless bureaucracy and constant bickering from it.

    The Commonwealth was the union that we should have stuck with. Britain may be in decline but better to spend our dotage amongst friends and family, rather than backstabbing, self-serving colleagues. Just look at our ally Sarkozy, twice in the past week he has blasted the British economy and British industry. This fixation with Europe has cost us so much, we are forgetting who our real friends are.

    I think that most Britons would find it preferable to just be a state in Australia, Canada or even the US, rather than the EU.

  11. Alfie says:

    Tex I didn’t do anything to the video embed so I don’t know what to say. I will say though that I agree with your take on how effed up things are when folks continue to support the occupods hook line and sinker. I think Oakland has been pretty screwed for some time. Whether it was the Ebonics initiative or the sonar mic’ing of city blocks so they could triangulate gun shots-as opposed to hiring more cops with the $$ and now this the back and forth lunacy out of Oakland City Hall on the OWS issue. When will the voters/citizens of Oakland wake up?

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