Mish's Global Economic Trend Analysis |
- Bank of England Chief Economist Says "80 million US and 15 million UK Jobs to be Taken Over by Robots"
- European Commission President Jean-Claude Juncker Caught in Another Lie, Plans Mutualized Bank Guarantees
- Schäuble Accuses Merkel of "Careless Actions" Warns Germany Faces "Avalanche” of Refugees; Reckless not Careless
- EU Pledged to Relocate 160,000 Refugees in One Year - Results So Far, 147 in Three Months
Posted: 12 Nov 2015 06:08 PM PST Bank of England's chief economist Andy Haldane joined the worry over robots parade. Eighty Million US Jobs at Risk from automation says Haldane. Speaking at the Trades Union Congress in London, Bank of England chief economist said 80 million U.S. and 15 million U.K. jobs are in danger of being taken over by robots.Jobs at Risk "Regressive Tax on the Unskilled" The idea that technology is a tax on anyone is ridiculous. Technology always has, and always will enhance quality of life, with the exception of war-mongering technology. What is clearly a regressive tax on the poor is central banks' efforts to force inflation in a deflationary world. Mike "Mish" Shedlock |
Posted: 12 Nov 2015 11:01 AM PST Mutualized Bank Guarantees Although denying that was his intention, European Commission President Jean-Claude Juncker Plans Deposit Guarantee Fund by 2024. Brussels is drawing up plans to gradually siphon cash away from national bank deposit guarantee schemes over the next decade to fund a new eurozone-wide insurance system, a move likely to trigger a bitter clash with Germany.Juncker Caught Again Clearly Jean-Claude Juncker is caught in another lie. It is hardly shocking that any public bureaucrat would tell lies. But with Juncker, one should always suspect lies. After all, Juncker is famous for saying "When it becomes serious, you have to lie". Another Huge Warning Juncker's latest lie is another huge warning to Wolfgang Schäuble, Germany's finance minister, and to all of Germany as well. Mutualized deposits, mutualized debts, and mutualized benefits are all in the works. And as we have seen, the German constitutional court is prepared to look the other way as the march to German guarantees of Greek, Portuguese, and peripheral debt takes place. And Schäuble cannot count on Merkel either. I strongly suggest she approves of this approach, whether she says so or not. At every critical turn, Merkel has bent to keeping the eurozone intact, no matter what it takes. Mike "Mish" Shedlock |
Posted: 12 Nov 2015 10:14 AM PST Wolfgang Schäuble, Germany's finance minister, and someone of high enough ranking to actually matter, has had enough of chancellor Angela Merkel's reckless refugee crisis. In his second attack on Merkel in a week, Schäuble Warns of Refugee "Avalanche". Germany may be facing "an avalanche" of refugees triggered by "careless" actions, Wolfgang Schäuble, the country's powerful finance minister, has warned in a thinly-veiled criticism of his boss, chancellor Angela Merkel.Reckless not Careless Merkel's policies are not careless, they are downright reckless. A skier who does not know of avalanche dangers is careless. A skier who does know of the dangers and skies anyway is reckless. Similarly, accidentally not paying attention while driving is careless, texting while driving is reckless. Merkel has intentionally disregarded repeat warnings regarding inane political decisions. She is reckless. Schäuble Misses Boat as Well Schäuble misses the boat as well. As I pointed out before, a policy announcement denying families the right to hook up later, is a message "Bring the Wife and Kids Now, While You Can". Merkel's symbolic actions to replace cash assistance with vouchers for food and shelter are as useless. When you have no food and no shelter, you are going to spend free money on food and shelter. In essence, vouchers are nearly as good as cash, just less flexible. As for interior minister Thomas de Maizière's plan to "return refugees to the member state in which they first arrived in the union" he and Schäuble need to think ahead. I ask what the hell is Greece supposed to do with 2 million refugees? Can't anyone in Germany look ahead? Obviously the EU's border policy rules of requiring refugees to register at the place of first entry is broken beyond repair. That has led to fence building all over the place except where a fence is desperately needed: between Turkey and Greece, and between Turkey and Bulgaria. Those two badly needed fences will block all land access to the EU. As late as November 5 Merkel Reaffirmed "Refugees Welcome" Policy Over Her Own Party's Objections. Discussion of Merkel's incompetence would not be complete without mocking her pledge to relocate 160,000 refugees from Greece and other small states incapable of handing the refugee flow. For details, please see EU Pledged to Relocate 160,000 Refugees in One Year - Results So Far, 147 in Three Months. Do you see the irony? Germany pledged to spread around refugees in Greece, but now Mr. de Maizière reinstituted rules allowing Germany to return refugees to Greece! Comprehensive Solution To date, I believe I am the only one who has outlined a comprehensive solution to this madness. Mish Proposed Strategy
Peak Merkel On September 18, I coined the phrase "Peak Merkel". Today, Wolfgang Schäuble, Germany's finance minister, confirmed my analysis. Mike "Mish" Shedlock |
EU Pledged to Relocate 160,000 Refugees in One Year - Results So Far, 147 in Three Months Posted: 12 Nov 2015 12:19 AM PST More Refugee Math
I said Merkel's relocation plan was idiotic the moment she hatched it, but I have to admit the results are far worse than even I expected. Floundering Migrant Policy The Financial Times reports Europe's Leaders Struggle to Save Floundering Migrant Policy. With up to 6,000 people pouring into Greece each day, EU leaders will rake over what has gone wrong with the bloc's response and how to cut a deal with Turkey, which has become the main stopping-off point for people trying to enter Europe."We Cannot Let People Die in the Balkans" I have a simple question: Why not? Nonetheless, let's assume that the EU has decided against that policy. What else could the EU do? What if people could not get to the Balkans? Mathematically speaking, if refugees cannot get to the Balkans, they won't die in the Balkans. I suggest it's pretty easy to spot where a fence and strict border controls are needed. Instead, fences are popping up all over the place. Slovenian Soldiers Erect Razor-Wire Border Fence to Stop Migrants Just yesterday a new fence came into play as Slovenian Soldiers Erect Razor-Wire Border Fence to Stop Migrants. Trucks carrying wire fencing arrived in the Slovenian village of Veliki Obrez close to the border with Croatia, with large numbers of soldiers and police guarding construction equipment.Still More Refugee Math Instead of fencing off the key entry points, a cascade of fences is developing everywhere else. Germany is banking on a deal with Turkey with promises ranging from €3bn in aid to Schengen visas for Turkish citizens. That is pure rehash of a plan that cannot possibly work. Besides, Turkey long ago rejected as being insufficient.
Between 2 and 2.5 million Syrian refugees are in Turkey. And there are another 75 million Turks that just may decide they would rather be in Germany. Merkel should be grateful Turkey turned down he offer. Instead of 2.5 million Syrians who may want in, 75 million Turks may want to relocate. Finally note the irony in the struggle to save the "floundering migrant policy". There is nothing at all worth saving. They need to scrap the existing policy and turn away every refugee. Until the EU takes a hard line stance like Australia, the problem will not go away. For details of Australia's solution please see Former Australia Prime Minister Chastises EU on Securing Borders. Mike "Mish" Shedlock |
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