Game Over (Part 2)

torn greece flagThe recent riots and anger of the Greek people signs a next step in EU dismantlement. The NIMBY (Not In My Back Yard)  is still your friend, my dear Europe . The Greek financial-economical disaster is not a “pure” Greek product. Many Eastern-European countries including Italy. Germany, United Kingdom are co-responsible for the Greek’s mess. A European country that cheap to have holidays “hot deal” with low costs, no receipts in a large number of restaurants, bars and other facilities. We (the Western Europeans) were happy to have a cheap holiday liaison right next door in Europe.

Further the entrance of Greece into the EURO monetary union wasn’t tidy checked. Or should I say was “accepted” behind knowledge of some “rounded” numbers.

Greece is the first fine example of unconfined, wild-west financial speculation globally where few players hold all the cards and the countries are the poker money. Watch the US-based rating agencies firing down European and other countries due to their “opulent” debts. What about your backyard my US friend?

Let’s stop this illusion about a Europe in “five minutes” (why weren’t we so hot to enlarge the EU to 27 meanwhile we knew our differences not to be settled when we were only 12?). Who pushed Kohl, Ciampi, Mitterand and other leaders to stipulate and realize the EURO zone.

As long as Europe is still in NIMBY state all efforts will be vain.

What we need is younger politicians with innovative ideas. Why do we target on innovation on labour market, in economics but not in politics? Why do we need to support statements of  Old Men who already saved their big pensions for the next 2 generations.

And now look what all this is brinhing us to… People of an EU country burn the national flag of another EU country. My dear Europe, I think you have a big problem.

* * * * * * * * * *

To the Greek Ambassadors in all EU countries:

Dear Sirs,

I am indignant about the fact that Greek people burn the flag of my country. We, the people of Germany, often do not agree with our government and especially with tax rising decisions. I completely understand the anger and frustration the Greek people pass in these days. Further I do believe that your country is undergoing any possible solutions to light up the dark of debts your are swallowed in but. But burning in rage a nations flag is not an excuse to that. Think about we would burn your flag in German cities? Wouldn’t you tag us immediately “NAZIS” or xenophobists?

 

 

Advertisements

Game Over (Part 1)

Game Over
Now we hit the ground. No airbag, nor any other equipment of our ruined car called EU was able to protect us against this downfall. It’s like a car driver seeing the tree 5 miles ahead but pointing on it with 90 mph. A behavior the EU and it’s member states applied and apply in recent time. I call it “auto-determined and conscious distruction”. You know that pointing that tree with the high speed will harm you. But as a EU leader (and driver) you likely prefer to enjoy the minutes between the speed-rush and the impact rather than thinking about how to avoid the fatality.
Ups …. Sorry it was a videogame :=). But do you recognize the events lately happened to Europe struggling about sovereign debt anf high interest rates in treasure papers? My videogame console I can reset or change the game when I’m sucked with the current one. But economic and political reality isn’t that easy to reset, nor we are able to mutate situations with a Harry Potter wand trick.
Global players in economy have learned to cooperate to defy the big ones on their own grounds. They know that without coop you’re out of game. 11 single stubborn soccer kickers aren’t a team to face a game. But Europe fatally lets us know that our team (EU) is far from be united (neither is able to agree superficial terms!). NIMBY. That’s the slogan our EU governments printed on their shirts. Everyone with its own national flag on it and dressed different from the others. Would you attend a soccer game like that? Would you spend any money on a game played by such a dis-coordinated team…?
The same question is now running exchange halls force and back. Investors know they are responsible on this alternation of the markets but they are glad and thankful to Europe because they make it possible. Gambling from small to big. Nothing else exchange halls nowdays mean.
We need a global effort to solve global issues. Not only in economics, but also in social, religion, justice. As long as all players act as a “one-man-show” to attract the others we will never get a touchable positive result on it. And this will mean… GAME OVER!
Copyright © 2011 by Inboxfolder (inboxfolder(at)aol.com)

The Spill and its Bill

Recently we were all victims that huge cataclysm caused by humans have no limit. As long as we go on with our philosophy to be “greater and richer” despite the limited resources we have and ignoring the (must) security measures to apply to certain processes of resource exploiting icidents like this will ever happen again. What we need is to calculate the benefits, the risks and the ecological impact of our actions. As economy is driven my making money there is no space to think about precautions or similar actions. And as soon as things go well the benefit for all of us is tangible (Oil, Gas, my car runs!). But the grown competition and the consequently shrinking margins in earning money are tracking the way to strategies where conglomerates and big companies decide “in the twinkling of an eye” what to do to keep pace with competitors.

This strategy is no longer valid in a media long-term run. We the folks are partly responsible of this bloodshed global extraction companies apply to several sites on this planet, most of them in located in unique and sensitive ecosystems (see Louisiana).

I don’t know how many millions of gallons spilled into the Gulf of Mexico since the drown of Deep Water Horizon and what this means in economical impact for BP’s accounting. And the other side is how many money (if to reset all the mess might be payable by money?) is needed to clean the beaches and help out the wildlife and communities that live in the affected area. No one else than the government of the United States can be once more a forerunner to change global behavior and be more responsible to mother nature.

After the financial crack down and the bail-out ob billions of dollars, and under the scene of the oil spill disaster still to be calculated in financial and economical damage we are still not convinced to change from root (we the people) to give a chance to new approaches in living a better life now and in the future.

I think that BP will never be intentioned to pay the full amount in economical costs of the Oil Spill and I rarely believe that Washington will be able to impose a new policy to the oil industry to be more responsible. At the end the Spill-Out will be relayed to the taxpayer like we’ve seen with the financial Bail-Out. At the end it is partly blamable to the taxpayer itself because we all wanted to live a “real life” on credit and driving big cars consuming lots of gas.

Weak with Greek

In big trouble this time

Recent development in a Greece default are rising up as Standard & Poor’s dropped Greeks bonds to “junk-bonds”. This in another fine example of how the carnivorous free market is feeding itself with a big nutrient called speculation. And European leaders and policy are not even helpful at all as they are divided (what a gap!) on how to handle the Greek question. Many people knew that Greece when added to the EU currency union it’s economical and financial structure is not up to the state-of-the-art of other nations. Negligence and tax evasion did the rest. European financial observers were surely up to the view about Greek’s national debt and status. And they played with it on the stock exchanges. Then there were all the tourists going to Greece having cheap holidays in an EU country (=means you have the security and stability of an EU country and can pay with your EUR money). I think none of the vacationers to Greece ever thought about the cheap services and meals you could get there and why in many places small restaurants neither had a cash desk(!).

And so we did have Greece it’s own ongoing despite the “strange” issues it has inside. Politicians are very cautious about their arguments they put on table. As long as Greece was able to handle it’s enormous debt it’s own way everything was fine. And I cannot believe the ECB never thought (at least a bit) about the huge debt and deficit of the Greek economy. Then Lehman Brothers bought more decline to the fragile Greek economy, suffering the last 10-15 years. Greece (I supposed) was hoping in stability entering the EUR currency club. But with no strange austerity and new procedures of optimization in public administration and spending this positive effect never came to work.

Nowdays we are witness to the market ruling Greece it’s own way. Markets will have Greece to fail to speculate on it’s default.

Yes, we need to reprove Greece about it’s household’s over the last 10-15 years. Yes, we need to blame our EU politicians because they never took an eyeball deeper into Greece to understand maybe future risks. Yes, we need to condemn unlimited speculations on state defaults.

The latest shout-outs about a “kick-out” of Greece out of the EU currency union are ridiculous. Even Germany (I suppose) was basically informed about the Greeks economical, social and financial weakness and the policies that came to work in the Hellenic country. Policies that didn’t target on efficiency and saving in costs of public administration and health care. So Germany is right to invoke strict rules if any help package should be sent to Athens. And Athens itself needs to confess it’s sin not be have worked as recommended on it’s internal problems. But Germany cannot almost kick out Greece of the European Currency Union because they are near default. This kick out might be a huge damage to the EURO. In fact, many think that the EURO know is running it’s real challenge since introduction in 1999. To find mechanisms and control strategies to deny further ASAD “a-state-almost-default” events. But Bruxelles and it’s member states are not really willing to touch deep issues on how to deal with this “Greek geek”. The EU European Union) needs finally to stand tall as one entity and to find ways to point out long-term policy goals and to win nationalism in it’s member countries.

As you can see, big institutions have the same behavior of human beings. We realize the “wrong” or the “emergency” only in case of it’s put into effect. So we skip smoking only when told by the medic we have lung cancer. Preventive measures we didn’t apply to avoid it. Ad that’s the same many deal recklessness with their money until one day the eviction letters flies in.

In big or small, we do it all (the same way like they do).

Don’t hope that much he’ll be the “All-Fixer”

As I wrote to be afraid of in my article “Bail-Out or Pump-Out” got real with bonus payments to AIG managers. And I also mentioned in the past that the Obama administration can’t be seen as the “all-things healer”. Obama needs to reassess a big part of the global economy. And many choices won’t pass easily or at congress or at public surveys. Even his own party is blaming the 1st black President of the US (it smells like revenge to his “against-the-lobby” speech he addressed 2 or 3 weeks ago?) making it not easier for the oval office man to continue on his way to save the country from a recession. “Change!” was his keyword and change will come. But even a holy saint with many superpowers could not fix all the mess of 30-40 years of over liberalized rules in the financial sector that ruined also real economy sectors when the bubble of toxic assets exploded. But media and Republican forces (assisted by some Dem’s as well) now fire against Obama because of the bonus payments he didn’t stop. Why did Rep’s and Dem’s in the past never ruled the markets to impose more tranparency and supervision? Maybe they were directly involved to gain profit? 😉  I think the bonus payment is due to 2 reasons: 1) Obama didn’t take an eyeball on these contracts and their due time as needed; 2) Geithner wasn’t able to check and correct the issue in time. Now folks, opposition forces and media now have new more strings on their bow. People need a sinner to sentence, Rep’s need to inflict damage to Obama’s administration as much as possible and media was and is always the middle-passthrough to mix-up the “real” information people need (no more serious journalism to tell the things they really are = more quantity and sensationalism than quality?). I do not defend Obama when he is making wrong and the AIG bonus payment was “partially” his own failure (or his staff’s), but as I told you at the beginning, humans are no saints and no one can be the “All-fixer” and recover a whole economy like the US is; doing fast, reliable, without mistakes and without deceiving anyone. Tell me one person who would be able to do that… and I’ll give ’em the job!

Andreas Ahlen
mysay@inbox.com

The Bail-Out or the Pump-Out

Wall Street - World's Financial Center

Wall Street - World

What we’ve seen lately is an tremendous confirmation of what they say “The Big Ones Rule”. Despite the emergency Wall Street plunged in we cannot get friends of this Bail-Out plan under a “blanc cheque” aspect as we (the people) are and we will be the prey of the financial system. But financial need us to run the entire system (as shown on Situation Room at CNN). Ok, the whole system is more complex than shown in the transmission. It’s hard for me to understand why the “prey” of the financial system (the people) need to burn their tax money into the financial system to fix a mess the entire system did know about and shadows casted right since mid-2007?. Did Wall Street invite to share it’s earnings with the people their tax money they now urgently need? Why does the Senate approve not only the bill but also a $100bn tax reduction for financial sectors and businesses? Do the people always have to pay the mess of “bigger ones”? This Bail-Out Plan needs to be rewritten to focus not only on the emergency, but to rewrite the rules of market procedures, especially in the financial sector (transparency). The ones who need help (and earned loads of money on Wall Street, mainly those who contributed in mid/long-term to this dead end situation) must be forced to pay a solidarity tax (as in Germany) to contribute to the salvation of the system. If we fail to re-educate the financial system then future situations will always be charged on the tax payer and government. Without a clear re-regulation from the beginning we hand out “an all-time charge-me-up” card or “blanc cheque” to the business men

Administration lawmakers and their counterparts need to be very careful not to fire up the US citizens anger. The common people won’t easily understand why they have to be not only the “slaves” due to loans and mortgages, and therefore won’t accept why they have to run after the big financial firms to take them out of the mess.

An eventual Bail-Out plan should disburse money in a reasonable matter. I think a plural-step injection should be considered. Step after step after hitting certain conditions. $150bn immediately, with relevant focus on social subsidies to poor ones got stroked by the meltdown. Disbursing should be scrupulously monitored when given to financial firms in trouble. And 20% of the gains these companies would have should return as “Bail-Out”-Revenue tax. $200bn should be hold as a reserve and disbursed in a 2nd phase of the Bail-Out plans. I leave the details to more competent people. But remember: if ww sign to troubled companies to have the full $700bn dollars then they would think about it like a “gift”. But setting up clear points they have to meet to get the 2nd disbursement for their rescue and monitoring the reconstruction of troubled companies would have an additional point to make these CEOs work out real rescue plans.

Don’t make this Bail-Out seem to the people like a taxpayers Pump-Out…

Andreas Ahlen

http://mysay.newsvine.com


[Get Copyright Permissions]
Click here for copyright permissions!

Copyright 2008 Andreas Ahlen