Two Down--Merkel to Go!

European Leaders pursue new pact. Closer fiscal Ties.

What have they been doing wrong?


They attempted a solution that failed.

They repeated the failure.

They brought Europe to the brink of disaster.

They decided to talk about doing what they should have done in the first place.

These are the leaders. Oh, boy!


Further reports: The ECB has thus far refused to intervene. Why? Jean-Claude Trichet had a deep concern for his legacy. Too late!

With the new arrangement, if it is implemented—but more on that later—will give Madame Lagarde a larger role.  Now, perhaps Madame will not feel the pressure to ingratiate her self with Angela Merkel.

The ECB is now considering the larger efforts; some members anyway. Perhaps this means that some have more intelligence than a 5 lb bag of store brand cheese doodles. (2.27kg)

Sarkozy is eager for the new deal among the EuroCrats to be implemented. However, Angela Merkel wants to drag the process out—still unrepentant. Desolé. Remember what I said before? “…if it is implemented…”

Chancellor Merkel embraces the pretext of seeking consensus. Mind you, the inability to seek consensus in any reasonable time-frame is almost impossible. That is one of the causes of the problem in the first place.

Chancellor Merkel is concerned that non-Euro members don’t feel marginalised. This is the EuroZone—not a Nursery School. I am only going to imagine The Chancellor has been schooled by experts in American Marketing Strategies in advance of her attending

the meeting with President Obama.  “Oh, yes, Mr. President.  I don’t want the other nations to feel marginalised and low self-esteem.”

Thank you, Angela Merkel.

Now, what has brought Germany around to everyone else’s way of thinking? Is it the fact that the EuroZone is on the Brink of Disaster? No. It is the fact that the disaster is now washing up onto German Shores. That woke the DeutscheCrats real fast. Now maybe they will ask Chancellor Merkel to resign.


The euphemism has not effected Europe alone. The Wall Street Journal says “Berlin” when in means “Merkel”.

Monti takes over Italy. Borrowing costs rise. People blame Monti and not the 50% discount Merkel granted to Bond investors.

Of course, no disaster would be complete without the Economists.

Economists say the ECB can do more legally. Okay. We agree.

“But wait, there’s more.”

Economists have said:

Large Bond buys by the U.S. Federal Reserve and The Bank of England haven’t eroded their political independence. Here goes:

U.S. Federal Reserve. Operative Word(s): U.S.

The Bank of England. Operative Word: England.

The ECB. Operative Word: European.

If I caught that, everyone caught that. Why bother engaging in the pretext, pretense, and, well, academic flummery? You may be correct. However, how will we know?

“But wait, there’s more.”

“ECB loath to take actions that could spark a political backlash against it in Germany, the Euro’s most powerful member.” Maybe too powerful, eh?

New EuroPact Idea: Ask Merkel to leave office or ask Germany to leave the EuroUnion.

“Nothing for nothing,” as my Mom used to say. In other words, “The Price of Germany is too high a Price for German Participation.

If the EuroCrats threaten to kick Germany out, what are they going to do? Take their ball and go join another EuroUnion? Can I seriously suggest that? No; but the EuroCrats can—and should. What would that cause? Don’t worry. It won’t get that far. Germany will ask Chancellor Merkel to step down and go home. Nicely, of course.


The best part of all this is the question, why is Germany willing to work with the ROE? (Rest of Europe) Because the Crisis Hit Berlin.

Papandreou stepped down.

Berlusconi stepped down.

Now, perhaps, it is time for Merkel to step down.

The headline: Time Runs Short for Solution to EuroCrisis. Someone tell Chancellor Merkel…after time runs out!


Sincerely,

Slim


mailto:slimfairview@yahoo.com


Copyright © 2011 Slim Fairview



They refused to do what was necessary.

EuroUnion: An Uncivil Union

The EuroUnion will go nowhere without an Economic Development Project.  And, Europe needs both Management and Leadership.

You can't lead if you can't manage.  And the EuroCrats CANNOT manage.

One reason the EuroCrats fail is because no one has confidence in anyone.  Why would they? 

Why would anyone feel confident in the EuroCrats, Merkel at the fore, who have devised a plan, implemented the plan, and presided gallantly over the plan that has perpetuated the decline?

Who, really, has confidence in Angela Merkel?  Who?  Why?  Answer: Because she is rich.

Here is the folksy analogy.

Hey, everyone, Rich Aunt Angela is coming to dinner.  Let's spend more than we can afford and eat less than we need, to curry favour with the Rich Aunt who criticises us for wasting money on frivolity and not eating well.

You cannot cut wages, fire people, raise property taxes and call it a solution.

You cannot approve a bailout on the assumption of growth in Greece, then impose sanctions to punish Greece because your assumptions were wrong and call yourself a leader.  You are not a leader.  And you certainly are not a manager.  You are a failure.  A failure.

Reduce the number of attendees.
Stop sitting in a circle behind flags.
Face the blackboard.
Don't ask questions.
Through question and answer, quest 4 the truth.
Eliminate known failures.
Seek not consensus--seek acknowledgement.

To lift a line from our Founding Fathers:  "We hold these truths to be self-evident."

"It may be a Universal Condition:  We refuse to acknowledge that all alliances and enmities are transitory."  The Quotations of Slim Fairview.  However, The EuroCrats must accept that the Zero-Sum Game is no longer viable. That is the nexus of my ppt. presentation "The Future of the G 20 in Good Times and Bad."  If you watch Cannes, however, you will see my prediction come true.  Nothing will come out of it.

I had had hopes when I read the statement by Wolfgang Schauble adding two more elements to the EuroPlan.

Provisions for Economic Development. (Growth)
Management of the EuroUnion.

It seems neither will come about any time soon. In other words, why bother making the effort to put the umlaut (ä) when writing his name when he will prove to be as big a disappointment as Chancellor Merkel?

It is time for Angela Merkel to step down or for the Germany to leave the EuroUnion.


Bon Chance.

Slim


slimfairview@yahoo.com

Copyright (c) 2011 Slim Fairview

EuroCrats Take Slim's Advice!

Finally!  It was a struggle, but the EuroCrats are finally taking my advice.  Maybe now they will offer me a job.  Or not.

If you can believe Wolfgang Schäuble, and it is in my best interest to do so, the EuroCrats will focus on ways to Promote Economic Growth.  This is something heretofore not addressed.  This is what I have been pressing to no avail--up till now. 

The absence of ways to promote economic growth has been the cornerstone of the EuroCrats' failure to improve the EuroZone economy or at least stem the decline.  Things may now change.  However, (for those who've read the monograph on my blog) there is still the EuroGlitch.  Now, however, I can report that that glitch is not merely a misalliance between France and Germany. It is a sword that hangs over everyone's head.

From the Manchester Guardian:

Schäuble said a final package would not be in place until the G20 world leaders' summit in Cannes next month. His comments dismayed investors concerned that Berlin and Paris have failed to grasp the magnitude of the eurozone's debt crisis.  [ Hold that thought. ]


From the Manchester Guardian: 

However, his strong insistence on bank recapitalisation and a restructuring of Greek debt suggests this will not be a painless or a quick outcome. More importantly, he is defending the German approach to the debt crisis and is very robust when talking about the failings of financial markets and the need for fresh regulation.


I will leave both quotes where they are.  You can remember them and apply them at the appropriate time.

On The Merkel Plan, Steffen Seibert, spokesman for Angela Merkel, reported "Those are working steps".  Translation:  We created a plan that will take a long time hoping the crisis resolves itself somewhere along the way.  In short, they are back to "hope as a plan".

The real problem, which I alluded to only briefly, and even then inadvertently, is Chancellor Merkel.

Chancellor Merkel has been playing Dionysus, dangling swords over everyone's heads.  Perhaps the Chancellor should be the banquet guest instead:

Angela Merkel's strict demands for Greek Austerity, (Without the brand new concession to Economic Development) imposed great hardships on Greece.  This inspired my monograph, The EuroCrats' Trojan Plan:  Destroy Greece. 

You cannot, fire people, cut salaries, raise property taxes, and call it a solution to the problem of Greek Debt.


Angela Merkel's step to bolster the EuroFund with no scraps for France, inspired the monograph, The EuroGlitch.  It arose from the comment, "Why should German taxpayers bailout a French Bank that is going to compete with a German Bank".

To France:  You may bring the food, but you may not eat any of the food because I am rich.

Additional demands mandated that I point out that:

"Investors invest money to make profits not to mitigate losses."

This arose from the Demands that Private Investors bear a greater burden in the Greek Debt Bailout (Up to 50%).

This suggests that the EuroCrats said to the EuroBanks, "We will give you more money so you can make more bad loans."  I must wonder, is this before or after the 50% losses they must endure?

To the Private Investors:  Just Send Money--not ideas.


Moody's just warned of a downgrade for French Banks.

EuroBanks have divested themselves of Greek Debt.  Not so, France.

France faces a downgrade.

France is left holding the bag.

However, all is not lost.

You have read my comments on the EuroCrisis, The EuroMess, The EuroGlitch, Project Greece, et. al. (Perhaps you even read my monograph Point Taken.) 

You may remember my derision of such remarks by Tim Geithner as: 

"When France and Germany agree on a plan, big things are possible."  (Well, that's just silly.)

Now, however, there is a light at the end of the tunnel.

The Old Plan

Recapitalise the Banks

Bolster the Bailout Fund

Bailout for Greece.

The New Plan

Recapitalise the Banks

Bolster the Bailout Fund

Bailout Greece

Develop ways to promote economic growth

Strengthen the management of the EuroZone.

Repeat

Develop Ways to Promote Economic Growth

Strengthen the Management of the EuroZone

Why didn't they simply listen to me in the first place?  Alas, no. 

"Don't bother listening to me.  Everyone always doesn't listen to me."


http://slimviews.blogspot.com/ Commentary on Global Political and Economic Events by Slim Fairview.  Read my stuff today or hear it from experts in a month or two. Slim


Bon Chance.

Sincerely,

Slim

slimfairview@yahoo.com

Copyright (c) 2011 Slim Fairview