Tag Archives: eu

Business/Economics, International, U.S.

Government slight of hand & Media Incompetence: GDP numbers continue to get revised donward, after being publicly reported, U.S. no better off than EU

The U.S. Bureau of Economic Analysis says the GDP for the second quarter of 2011 was a stagnant 1.3%.  But what some media outlets didn’t report was that the previous quarter was revised downward from 1.95% to 0.4%!

This kind of slight of hand has been going on for years now.  It turns out that real GDP has been much lower during this whole recession/recovery BS.  Don’t be surprised that the second quarter GDP numbers get revised downward when the U.S. Bureau of Economic Analysis reports the 3rd quarter results.

The revision of the 1st quarter, down to 0.4%, shows that the United States is no better off than the European Union, which is in real big trouble.

Germany hit a surprising low of 0.1% GDP.  France, the second biggest EU economic powerhouse after Germany, flatlined at 0% GDP!  For the whole of the EU Gross Domestic Product was only 0.2% for the second quarter.

 

 

 

Business/Economics, International

Global Economic War: Europe increases tariffs on Chinese products, again

“A series of actions adopted by the EU this year suggests that tougher trade policies adopted towards China may increase the possibility of trade protectionism.”-Bai Ming, Chinese Academy of International Trade and Economic Cooperation

Last November, the European Union put together a five year plan to boost European production.  The plan targets China by imposing and raising tariffs.  The goal is to force Europeans to start buying more expensive European made products by slowing, or stopping the importation of Chinese products.

Earlier this year the EU already jacked up tariffs on Chinese ceramics by 70%!  Now, as part of the five year plan, tariffs will be raised on other inexpensive products coming from China.  Several EU member countries have also boycotted products made in China.

The five year EU plan is known as ‘protectionism’.  If you know your history, protectionism became the main economic policy of many countries, including the United States, prior to the First World War, and prior to the Second World War.

Also, protectionism is the result of bad economic times, like major recessions, or depressions.  The times we’re living in now look more and more like history repeating itself.  What’s next is another World War.  Right now it looks like Europe Union has drawn the line with China, who’s next?

 

 

Business/Economics, International, U.S.

What Economic Recovery? World Bank says things are gonna get worse, public protestors are the new terrorists, China the new financial power house

“In the past couple of weeks, the world has moved from a troubled multi-speed recovery to a new and more dangerous phase.”-Robert Zoellick, World Bank president

In an interview with Australian media, the president of the World Bank says things are not getting better, and anyone who complains about the drastic cuts in their taxpayer funded social programs is a terrorist!

“We are in the early moments of a new and different storm, it’s not the same as [the] 2008 [financial crisis].”

Zoellick says the debt situation in Europe is much worse than what’s being reported.  He also says governments took too long to take action.  Because of the slow response, of Europe and the United States, to deal with economic and financial problems, the world’s financial power is rapidly moving in China’s favor.

Zoellick also said that public protests over drastic government cuts in social programs are a threat, and he agrees with government crack downs on protestors: “I believe what British Prime Minister David Cameron is doing in the U.K. is really necessary.”

So you see the new terrorists in the new global economic war, is you!  


International, U.S.

U.S. & Europe closer to war with Syria, Clinton uses phrases that hint at military action

In a July 11 statement to the media, about Syria, U.S. Secretary of State Hillary Clinton, used phrases very similar to phrases used in speeches that preceded U.S. led attacks on other countries.

She said Syria’s president was “…not indispensable…”, and that “…he has lost legitimacy, he has failed to deliver on the promises he’s made…”. Clinton also made the obligatory accusation that Syria was getting help from a sponsor of terrorism, Iran.

Clinton is meeting with European Union foreign policy chief Catherine Ashton, no doubt they will be talking about military action against Syria.  Syria, which included Lebanon, was placed under French control after World War One.  The Imperialist French President Sarkozy seems to be interested in regaining all of France’s former colonies.

Syrian officials have countered the statements by Hillary Clinton, saying: “These remarks amount to further proof of the flagrant interference of the U.S. in the internal affairs of Syria.”

 

Business/Economics, International

What Economic Recovery? European Union stumbling on second Greek bailout, as debt Emergency in Italy has EU officials scrambling

“We can’t go on for many more days like Friday. We’re very worried about Italy.”-European Central Bank official

July 11, European Union officials are in emergency mode, after it became clear that the second bailout loan for Greece will arrive too late to stop default, and now Italy is on the verge of financial collapse.

EU officials are scrambling to figure out how to get the bailout money to the Greek government faster, because it is now clear Greece is in much worse shape than thought, and will officially default soon.

“We need to move on this in the next couple of weeks.  It’s not a case of waiting until late August or early September as Germany is saying.  That’s too late and markets will make us pay for it.”-European Union official

EU officials are also scrambling to plan a possible bailout of Italy’s collapsing economy.  On Friday, July 8, there was an unexpected sell off of Italian government assets.  Italy is considered the EU’s third largest economy.

Both EU officials, and Italian officials say the bond markets are actually making things worse.  That’s because a lot of the money for the Greek bailout, and now a possible Italian bailout, is coming from private sources (like investors).  Now many of those private bailout sources are having second thoughts because it’s very possible they won’t get their money back.

It’s not helping that Germany is pushing for a rethink of the second Greek bailout.  They say the problem in Greece could take 15 years to fix: “It [second Greek bailout] can’t be something that will suffice for a three-month period but rather has to offer solutions to the problem that will cover the next 10 to 15 years.”-Christian Wulff, President of Germany

Germany has a lot of power in the EU, because they seem to be the only member country who’s economy is booming, thanks to their deals with China.

 

Business/Economics, International

What Economic Recovery? European Union jacks up import duties by 70%

“We are considering quitting the European market because the import duty is far beyond our ability to withstand.”-Wu Jianfeng, Hongyu Ceramics

Chinese media reporting that many small Chinese manufactures are in trouble, because they can no longer afford to send products to Europe.

In March the European Union jacked up its import duties on Chinese ceramics from just 3% to 73%!  If you study the world wide depression of the 1920-30s you’ll find that protectionist measures, like outrageous import duties, helped turn a recession into a depression.

Business/Economics, International

What Economic Recovery? Greece secretly defaults on bailout loans, on the verge of class war

“The measures that have been adopted are not to avoid the default, the default already took place, but it was not declared.”-Paolo Raffone, Secretary General of CIPI Foundation

Greece has cut even more social services and programs, and has jacked up taxes, in an effort to get more bailout loans approved.   The problem is that at least 16% of the Greek people are unemployed.

Analysts say most of the loans that Greece has gotten, have been going to pay previous loans.  Nothing is being used to try and build the Greek economy, like creating jobs.  The result is that the Greek government is just digging a deeper and deeper debt hole.

One analysts says what the Greek government is doing is called “virtual economics”, meaning the economy is based on loans, there is no true economy in Greece: “Economic specialists are trying to prop up an inherently unsustainable project, which is based on sometimes virtual economics.”-Sahara Ali, Green Party

Ali warns that continuing bailout loans will only make things worse for Greece, it’s really being done to save the European Union, and the Greek people know it: “That is what the general population has realized, that it’s increasing its indebtedness in order to prop up the Euro Zone.”

Ali suggested that part of the bailout loans require Greece to buy more products from other European countries, which actually works against building a Greek economy.

Paulo Raffone says the situation in Greece is heading towards a civil war based on class, rich vs poor: “The leadership in the country is always the same now for more than 40 years, and they’ve been profiteering on the People. There’re a few families that are sharing large shares of take in the national wealth.”

Raffone also says the control of Greece by the elites extends to the rest of Europe: “You have external European profiteers, which are the banks from Germany, France, Belgium and others, that have been profiteering on the Greek situation no matter what currency is there.” He says the elites don’t really want to change the current situation, because they’re making money off it.

Sahara Ali says the elites have revealed the “stupidity” of their economic reasoning: “Nobody’s actually able to eat the number of zeros, the negative zeros, in their bank balance.  What they actually are faced with, on a daily bases, is making ends meet.  Are we really thinking it’s reasonable to demand extra taxes from people in Greece who are on the minimum wage?”

Regarding the recent vote in the Greek Parliament, supporting their president’s latest efforts to get more loans,  analysts point out there is a huge gap growing between the People and their government officials.  The People do not want any more bailout loans.

More and more analysts are thinking that default, by many countries including the United States, is inevitable.  The problem is that the ruling elites of most countries are not being realistic, and are trying to pass the buck of responsibility of their bad choices onto the People/taxpayers.  This could result in class/civil wars on a global scale.

 

Business/Economics, International, U.S.

What Economic Recovery? United Nations says government cut backs making things worse

“Austerity measures in response to high government debt in some advanced economies, such as Greece and Spain, are not only threatening public sector employment and social expenditure, but also making the recovery more uncertain and fragile.”-UN Department of Economic and Social Affairs

The UN is warning that cuts in government spending will only make the global economy worse.  This comes a week after the International Monetary Fund said the economic crisis was now in the political phase, meaning the private sector had failed.

Interestingly the UN is also blaming the bad economy on global lenders like the IMF.

 

Business/Economics, International, Opinion

What Economic Recovery? Britain wants the European Union to collapse

Discussions within the U.K. Parliament reveal that British leaders are hoping for a quick end to the European Union via a Greek collapse.

Former Foreign Secretary Jack Straw said, concerning the Euro: “…is going to collapse…” and “Is it not better that this happens quickly rather than a slow death?”

Current Financial Secretary to the Treasury, Mark Hoban said: “I am not going to comment on whether the eurozone will remain intact or not. Clearly, this crisis demonstrates the huge strain the eurozone in under. That is why it was right for us to stay out of the eurozone.”

Current Prime Minister, David Cameron said: “We were not involved in the first bailout of Greece; we don’t believe the European financial mechanism should be used in any way.”

Conservative Member of Parliament, Anne Main said Greece “…should be allowed to depart peacefully from the eurozone.”

Current Chief Secretary to the Treasury, Danny Alexander, said the U.K. would not help Greece:  “The package for Greece that is already in place is a eurozone package with the IMF.  It’s the eurozone that is taking forward discussions now about the next stage of dealing with Greece’s substantial problems.  There’s simply no proposition on the table for the U.K. to contribute beyond that IMF involvement and I don’t expect there to be one.”

When you take what the British leaders are saying, along with the International Monetary Fund’s warnings that the default of Greece will lead to a collapse of European Union, then it definitely looks like the British want Greece to default.  Historically the British never really liked the concept of the European Union.

 

 

Business/Economics, International

What Economic Recovery? Greece threatens default if they don’t get second bailout, EU Finance Ministers say domino effect if Greece defaults

“If Greece was to be the first country to default, eyes would turn to other countries such as Ireland, Portugal, Spain, Italy, maybe Belgium but also France, given its deficit and debt levels. We don’t know where the contagion would stop.”-Didier Reynders, Belgian Finance Minister

After the European Union announced they would hold back the second bailout loan for Greece, because they want Greece to make more spending cuts, Greece said pay up or we will default on the first loan.

Greece is supposed to make their first payment, on the first bailout, in July.  Greek officials say they need the second bailout before then, or they won’t be able to make the first payment.  Greek Prime Minister George Papandreou, also warned of a “violent bankruptcy”.

The Belgian Finance Minister, Didier Reynders says there is evidence that the Greeks presented false economic statements prior to getting the first bailout loan.  This is one of many reasons the EU is now holding back on the second loan.