Mish's Global Economic Trend Analysis

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Food Stamp Usage up 64% in Last Four Years, Cost up 114% in Same Period; SNAP Charts, Facts and Figures Posted: 27 Aug 2012 10:32 AM PDT Here are a couple of charts from Tim Wallace on the food stamp program, now called "SNAP" to remove the stigma. SNAP stands for Supplemental Nutrition Assistance Program. SNAP Participants click on chart for sharper image SNAP Program Costs in Millions click on chart for sharper image SNAP Facts and Figures In the last four years the number of participants increased by 64.7% In the last four years the program cost is up by 114.4% Since 2000, the number of participants is up 170% Since 2000, the program cost is up by 395% Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Merkel Pushes Convention to Draft New EU Treaty; United States of Merkel? Posted: 27 Aug 2012 09:24 AM PDT Will Merkel get her wish for a Unites States of Europe led by nannycrats in Brussels? I suspect not because a vote would likely go up in flames. Nonetheless, Merkel Pushes for Convention to Draft New EU Treaty Chancellor Angela Merkel's plans for a new treaty governing the European Union are becoming more concrete. SPIEGEL has learned that the German leader wants the EU to begin working on a draft this year, with the aim of providing Brussels with greater power to monitor budgets. But many countries are deeply opposed to the idea. A date for the beginning of the convention is expected to be fixed at an EU summit in December. Merkel has been pushing for some time now to complement the recently approved fiscal pact, which harmonizes budget policies within 25 of the EU's 27 countries, with a political union. Germany would like to see, for example, a legal basis that would give the European Court of Justice the jurisdiction to monitor the budgets of member states and to punish deficit offenders. So far, though, the German proposal has found few supporters in the other EU member states. During a meeting of the so-called Future Group, an informal gathering of 10 foreign ministers from EU countries, the majority opposed a call by German Foreign Minister Guido Westerwelle for a new treaty convention. Other countries, including Ireland, do not want to take the risk of a national referendum, which a new EU treaty would entail in some member states. When Merkel previously brought up the subject during a December EU summit meeting, many people reacted with indignation. Initially, the other EU countries were unwilling to go along with the calls from Merkel and then-French President Nicolas Sarkozy for automatic sanctions for repeat offenders of budget rules. In the end, the Germans and French found a common position, saying they would push forward with a new EU treaty -- either with the entire bloc or with the 17 members of the euro zone if other countries were unwilling to go along with it. United States of Merkel Do the German people want a centralized authority over budgets led by bureaucrats in Brussels or is is it primarily Merkel? I suggest the latter. Merkel wants as her legacy a United States of Merkel (which I define as a United States of Europe in which she gets primary credit for building). She does not care what it costs Germany as long as it gets her in the history books forever and a day. Numerous Problems The problems should be obvious. Many countries, especially the club-med states, do not want austerity or loss of sovereignty. They want printing. Also note that Holllande wants to continue his tax the rich policies while lowering the retirement age and preventing businesses from firing workers. Will Hollande's ideas work in a United States of Merkel? Let's assume they will work. Indeed that should be Germany's big fear. Put a bunch of nannycrats together and they are likely to decide anything. And whatever rules they decide will apply to every country in the nannyzone that foolishly signs the treaty. If the treaty is a simple majority rule treaty, Germany would be at risk of being overruled by the club-med states. If  the treaty is by percentages, the club-med states would be at risk of being dominated by what is good for Germany and France (assuming of course Germany and France can agree). No matter how a treaty is structured, some countries are guaranteed not to like it. Mathematically Impossible The Bundesbank said there should be no banking union until there is a fiscal union. Angela Merkel said that there should be no fiscal union until there is political union. François Hollande said that there should be no political union until there is a banking union. The German supreme court will not allow a political union nor a fiscal union, nor a banking union without a German referendum. Assume the Bundesbank will be ignored. Further assume Germany puts this to a vote and it passes. There still remains a big rift between the viewpoints of France and Germany as well as a big rift between Northern and Southern Europe. In Italy sentiment to leave the euro is very strong. So is the sentiment in Germany. Would Germans really vote for this boondoggle? Would the Netherlands? Austria? The next election in Italy may very well seal the fate against a new treaty idea even if Merkel and Hollande can work out major differences. Do-or-Die Political Expediency Finally, politicians might want a nannyzone, but citizens of many countries would not, and I strongly suspect that includes Germany. Recall that France and Germany pushed through a treaty in December (still not ratified). Also recall that Hollande ran on a platform of renegotiating the treaty. Germany and France are still bickering. How's that supposed to work? Does Merkel think an agreement now is likely? I think not. Instead, her proposal is simply a matter of do-or-die political expediency and her one last chance to push for the United States of Merkel. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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Damn Cool Pics

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• Star Wars Celebration VI Cosplay
• New Home for Norwegian Mass Killer Anders Breivik
• Women Are Teachable According to 1940s Booklet
• The Rise of Music Festivals [Infographic]

Star Wars Celebration VI Cosplay Posted: 27 Aug 2012 01:05 PM PDT A Star Wars gathering would not be complete without some Slave Leia's, Stormtroopers, Sith and Jedi costumes. Star Wars Celebration VI took place on August 23 - 26 in Orlando, Florida. Via: G4tv

New Home for Norwegian Mass Killer Anders Breivik Posted: 27 Aug 2012 12:14 PM PDT It seems like Norway is the best place in the world for mass murders. Let's see where Anders Breivik will spend the next 21 years of his life for the murder of 77 innocent men and women. Welcome to the Ila Detention and Security Prison in Oslo, Norway. Anders Breivik's prison cell, or should I call it apartment, has three rooms - bedroom, working room and gym. You can see the bedroom in the first photo. After Breivik will move into the cell the bedroom will look like this. And the working room will look like this one. There is a free dentist service. Library. A Gym Anders Breivik will get 8 euro (10 USD) a day to buy fresh fruits, candies, etc. at the jail store.

Women Are Teachable According to 1940s Booklet Posted: 27 Aug 2012 10:27 AM PDT This RCA plants booklet from 1940s is full of helpful suggestions for male bosses makes it sound as though half the population magically sprung up on the assembly line new to both the plant and the planet. For their own safety, we hope they kept the booklets away from the eyes of women wielding hot soldering irons. Via: Retronaut

The Rise of Music Festivals [Infographic] Posted: 27 Aug 2012 09:43 AM PDT With festival season well underway, millions of fans around the world are loading up their tents and coolers and shelling out cash to travel to the top parties of the summer. From Ancient Greece to Lollapalooza, this infographic from EquipSupply.com takes a look at some of the biggest music festivals in the world as well as the current trends in festival attendance including a portrait of the typical festival goer. Additionally, this infographic takes a look at what happens when music festivals go wrong. Click on Image to Enlarge.

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