miercuri, 20 iunie 2012

8 Attributes of Content That Inspire Action

8 Attributes of Content That Inspire Action


8 Attributes of Content That Inspire Action

Posted: 19 Jun 2012 02:18 PM PDT

Posted by DanielTynski

Anyone who says “you can lead a horse to water, but you can’t make it drink” is probably not a marketer.

And yet, this is something a lot of content marketing initiatives get wrong. Sure, the target audience may be making it to your content in droves, but leading people to your content is only step one.

As a marketer, you already know getting your visitors to perform an action is crucial to the success of any marketing initiative. Content marketing is no different. Tracking measurable actions (like newsletter subscribers, social shares, leads, clicks, and sales) tied to your content is crucial to gauging its efficacy.

Here is where most people get lost: They are creating content that isn’t leading people to perform measurable actions. Every piece of content you publish should be crafted with this in the forefront of your mind. If you’re not doing this, you’re wasting your time.

Ask yourself these questions:

  • What action do you want people to take after reading your content?
  • Which piece of past content inspired the highest number of these actions?
  • What elements of this content do you think contributed to its success?

Below is a breakdown of eight elements that inspire action and how to add them into your content. You should be purposefully weaving these elements into your content. At the end of this post, I’ve included an evaluation rubric for you to consistently measure if your content incorporates these attributes.

The Elements of Impactful Content

So how do you create content that leads your audience to perform a desired action?

Simply slapping a call-to-action at the end isn’t enough. Chances are your past content successes contained many, if not all, of the same attributes. Including these following elements throughout your content will help move people to action.

1. Provocative

Does your content flip conventional wisdom on its head?

Easily confused with controversy, being provocative is about more than raising eyebrows. Provocative content ignites emotion by pushing boundaries and challenges the status quo.

Example: Reinventing the Toilet

Non-profits are masters at using provocation to incite action. To raise awareness around poor sanitation conditions, the Bill & Melinda Gates Foundation put together a stellar content marketing campaign about, well...poop. Using a combination of infographics and kinetic typography videos, they packaged content that is shocking, frankly discusses a taboo subject, and makes the viewer think differently about something as pedestrian as a toilet. Makes you want to donate, right?

2. Visionary

Are you causing a “Eureka moment” for the reader?

Visionary content puts into words a frustration, realization, or need that the reader has, but may not have been fully aware of or seen properly verbalized previously.

Example: 15 Things You Should Give Up to Be Happy

purpose-fairy-article

This virally successful article didn’t reinvent the wheel (or the toilet), but rather, it produces a “why didn’t I think of that?” reaction. This was a simple list of things the reader probably had never connected with making them less happy in life. The title of this post is also provocative (one doesn’t associate giving things up with happiness) and no doubt greatly contributed to its viral success. Just take a look at the social shares in the screenshot below the title to see how many actions this piece spawned.

3. Differentiated

Are you rehashing what others have already said?

Differentiated content presents a completely original idea or discusses a tired topic in a new fashion or format. This is uncommon to most content and one of the toughest attributes to master.

Example: The Noob Guide to Online Marketing



Instead of being yet another “ultimate guide” blog post, this comprehensive resource combined expert knowledge with a visually-compelling format. And the accompanying infographic is anything but typical; it’s meant to be printed out and used as a checklist (you can rip the “cogs” off of the wheel as you complete each task).

4. Relevant

Does your content appeal to your target audience?

Content should be related to your brand without being an overt sales pitch. If you do go off topic, you’re doing so from the perspective of your vertical.

Example: Nature Valley Trail View



Nature Valley understood that a map of where you could buy granola bars wouldn’t be compelling (except for someone who was really into granola bars). But what is compelling to active people (the target audience of a mobile snack) is a map where you can take virtual tours through America’s national parks. There is no mention of granola bars in this virtual map, save for the subtle branding of the Nature Valley logo. This type of content is exactly what all businesses should be doing: providing your target audience with resources of entertainment relevant to their interests and lifestyle. They also posted a blog about how they created this project, another source of content that would be of interest to their target audience.

5. Timely

Are you one of the first to cover hot topics?

Even if you aren’t trying to break news, you should be incorporating current trends and news into your content. Leverage news items your audience is naturally talking about or seeking more information about.

Example: From Pump Pains to Pink Slips

My company, BlueGlass Interactive, created this infographic with Forbes which covered how rising gas prices affect unemployment, elections, and the stock market. We took a topic in the forefront of many people’s minds and made it compelling through data visualizations.

6. Demonstrates Mastery

Are you positioning your brand as a thought leader?

Masterful content offers an unparalleled depth of insight. It expands on complex ideas and shows a comprehensive analysis on the topic unlikely to be found from other sources.

Example: Local Search Ranking Factors



If you asked for a resource on local search, chances are you’d be directed to this mammoth survey of local search experts. Every year, David Mihm polls local search thought leaders about the ranking factors that drive Google’s Local Search algorithms and releases a new volume after each survey. Creating this type of resource (and continuously updating it) can position your brand as a top authority in your niche.

7. Can Be Delivered On

Do you provide the solution?

Content should intrigue the reader about your brand, and make them feel they have an unmet need only your brand can fill.

Example: Dollar Shave Club



You’ve probably heard the phrase “unique selling proposition,” but have rarely seen it in true form. Dollar Shave Club built their entire campaign on the very thing that no other competitor can offer: one dollar for razors mailed to you each month. With a unique selling proposition this strong, the viewer is almost forced to take action and sign up for the club. It doesn’t hurt that the video is hilarious, only adding to the uniqueness of the brand.

8. Narrative

Are you telling a story with a clear beginning, middle, and end?

Content with a strong narrative takes the reader on an exciting journey full of surprises and leads to a call-to-action of value for the brand. It’s cohesive, easy to understand, and inspires action related to the story.

Example: Water Changes Everything



Using another example from a non-profit, this motion graphic video from Charity Water takes the viewer on a treacherous journey. It illustrates how people without access to clean drinking water collect water and the repercussions of the struggles they face. It then presents a solution to the problem at hand, explaining how a specific dollar amount can contribute to helping the issue.

Using the Content Evaluation Rubric

I’ve put together an evaluation rubric that grades content on the above eight attributes.

Content Evaluation Rubric

Periodically measuring your content against this rubric will allow you to see if your content is incorporating these elements. After reading through your content, give each attribute a score of 1-5. It will be next to impossible to get a perfect 100%, but the great thing about this rubric is it will challenge you to include these elements in all of your content.

I recommend going through both your old popular content and your content that flopped to see how they fare on this rubric. Which attributes were strong or weak? You can adjust the rubric to give more weight to the attributes that resonated most with your audience in the past.

You can also customize the rubric to match the types of content you produce. For example, if you are primarily creating evergreen content, you can remove the “timely” attribute.

Conclusion

It’s tempting to chase viral success and create content that only produces traffic spikes and social shares. If you’re only creating content with this in mind, you may find yourself producing content that is completely unrelated to your business, not reaching the right audience, and not getting your visitors to perform the actions you hope.


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Getting the Maximum Number of Links From Your Infographic

Posted: 19 Jun 2012 04:16 AM PDT

Posted by Designbysoap Ltd

As the head of content creation and SEO over at Designbysoap Ltd, a significant chunk of my weekly activities is spend producing and promoting infographics for our clients. We've had infographics commissioned to be used for a variety of purposes, including public awareness campaigns, personal CV's, teaching aids, brand recognition, and everything in between. The vast majority of them, however, are produced with one key goal in mind: to increase backlinks to a target website.

So with that in mind, here's my in-depth guide to making the most out of your infographic, framed from the point of view of gaining the highest level of distribution (and therefore links) as possible.

It's worth noting that the concept, research, and design phase are extremely important in gaining links from your infographic - all the promotion in the world won't help with an infographic that people simply aren't interested in (or one that features a poor design concept). However, as this post will focus on promoting and pushing your infographic, I'll have to assume that you've got an infographic that's worth promoting. If you're still at the content creation stage, then my previous SEOmoz post might help you create something worthy of being shared.

Encouraging Sharing

You need to ensure that you make your infographic as easy to share as possible, which means ensuring that social media sharing buttons are clearly visible on the post - have a look at the social media buttons at the bottom of this post for a good example.

If you're publishing your infographic on a high profile blog then this probably won't be an issue, but if you're publishing on your own blog, make sure you're making it as easy as possible for your visitors to share the infographic via social media platforms. You should also include a clear call to action at the end of your post, something along the lines of 'if you enjoyed our infographic, please consider sharing it using the buttons below!'

Similarly, you should make reposting the infographic and linking back to you as easy as possible, and the best way to do this is to supply a HTML embed code. An embed code will not only provide people with an easy way of re-publishing your infographic, but it will ensure that they link back to you (via an image link) and allow you to control the anchor text. If you're not too hot with HTML, I'd recommend you take advantage of a simple but very clever tool from SEOGadget; their HTML embed code generator.

This tool will allow you to input your infographic URL, the title, your preferred anchor text and your link URL and then it will generate a HTML code that you can use on your own site.

Even with an embed code, some people will inevitably repost your infographic without providing a credit link back to you (they will just save the image and re-publish on their own site). We'll have a look at one way of dealing with this later on in the post, but just because someone isn't linking back to you doesn't mean you can't ensure you get credit for the content (and improve your brand recognition in the process). You should always add some kind of branding to the infographic to make sure people know where the content came from - now this doesn't mean plastering your logo all over it or relating everything in the infographic to your brand, but you can add a small, unobtrusive logo or standout URL at the footer of your infographic, like we did for the WordPress infographic for the Yoast website:

You can also add a QR code to the footer of your infographic, which is particularly useful if you're going to be using them in the real world, but we'll cover this in a bit more detail later on in the post.

International Links

As you would imagine, the vast majority of links you'll gain will be from English speaking websites, but that doesn't mean you should ignore international links. Getting your infographic translated into other languages can hugely increase the number of inbound links your infographic gains for your website, and it's not particularly difficult to do. This is particularly worthwhile if your infographic includes information that would be interesting or valuable to countries other than the UK or the US, which is probably the case with a huge number of infographics.

Here's an example taken from the Destructoid website; the Guide To The GamersUniverse infographic in English:

And in Chinese:

(Note these are just sections of the infographic, to see the whole infographic follow the link to the Destructoid website above).

If you're lucky enough to have someone on staff who speaks more than one language then great, but generally you'll need to source people who can translate the text in your infographic for you. You could use an online translation tool such as Google Translate, but these translations aren't always accurate, so you're probably better off using a platform like Elance to source a translator.

Once you have your translated infographics, you can start promoting these alongside your English version - you could have links from your original publishing site to versions in different languages (for example click here for Spanish version, click here for Chinese version, etc), as well as targeting internationally based website for further placement of your infographic.

While you're getting your infographic translated, you might also want to consider getting the translator to provide you with text you can use to Tweet out links to the foreign language version of your infographic (in the target language).

Active Link Building

Encouraging people to link to or share your infographic is one thing, but that doesn't mean you can't continue the process of active link-building after your initial infographic publication. In this section we'll have a look at some of the ways you can build links to your infographics, and increase the likelihood of it encouraging further links.

The easiest way to build links via your infographic is to submit it to the numerous infographic distribution portals available, almost all of which will allow a credit link back to the original designer or publisher. To help get you started, here's a quick list of sites that allow infographic submissions (thanks to Paddy Moogan and Doug at Pixel Design Studio for helping me out with a few extra sites for the list):

Visual.ly
Cool Infographics
Infographics Showcase
Amazing Infographics
Daily Infographic
Infographic Journal
Cloud Infographics
Infographic Post
Infographics Archive
Infographics Inspiration
Infographr
Infographics Bin
Infographicas
Video Infographic
OMG Infographics
Love Infographics
Fuck Yeah Infographics
I Heart Infographics
Infographics Online Directory
Infographic Heaven
Infographipedia
Best Infographics
Pure Infographics
Daily Statistic
Brandless Infographic Blog
The Infographics
Chartporn
Infographic Love
Info-graphic

Another great way to build links to your site via the infographic is with guest blogging - many people think that they can't continue to post out an infographic once it's been published, but this simply isn't the case (after all you're relying on other people continuing to post the infographic with a credit link back to you). As the infographic is an image, it doesn't count as duplicate content, so as long as you're writing unique copy to accompany the design with each guest blog, you're still using a perfectly legitimate technique and you don't need to worry about duplicate content. Find a list of sites that are in a relevant niche to your infographic topic, and start sending out some emails requesting placement of the infographic. For each person that accepts your request, write a brand new description / post to go with the infographic and get it published - as long as you're not duplicating that copy, you can repeat this process over and over again, gaining more and more links each time you do so.

If you don't have a network of blogs you can get in touch with, or you simply don't have the time for manual blogger outreach, you could consider using a service like MyBlogGuest, which has a specialised infographic guest blog section (we actually suggested this to them some time ago, so it's nice to see a service that really listens to their market). The MBG infographic section allows you to supply numerous different descriptions for one infographic, each of which will be available for bloggers to publish - if you're unfamiliar with MyBlogGuest and you're interested in link building via guest blogging, infographics, or both, I suggest you check it out via the link above.

It's also worth submitting your site to relevant content aggregation networks - there's not much point including a list here as it depends on your niche, but as an example, an infographic on SEO, link-building, or social media would be well suited to inbound.org.

You can also create a detailed press release around the infographic and submit it to platforms such as PRWeb, which will allow you to link back to the original publication.

Reformatting Your Infographic For Other Channels

Static infographics are phenomenal for building natural links to your website, but by going one step further and reformatting your infographic, you're ensuring you can get the most out of it in terms of inbound links and referred traffic.

One of the best ways to reformat your infographic is to animate it, which allows you to target video distribution platforms in addition to infographic submission sites. If you're lucky enough to have someone on staff who can use Adobe After Effects (or a similar program), then you can do this in-house, or you can hire an agency or freelancer to do this on your behalf (you'll need to supply them with the working file, which will most likely be in Illustrator or Photoshop format). You might even find that your infographic design agency can complete this for you (at Designbysoap Ltd we now offer this as an additional service), in which case it's always best to allow the original designer to animate it.

To show you the sort of thing you can do with the already finished artwork, here's a short animated infographic taken from the piece we designed for BusinessEnergy.com, entitled 'UK Business Energy Costs'.

Original infographic:

Animated Infographic:

Having the infographic as a video will not only increase the likelihood of people linking to you (as you can offer them two different ways of sharing your content), but it allows you to utilise high authority video distribution channels such as YouTube and Vimeo.

Another excellent way of reformatting your infographic to encourage natural links is to make your infographic interactive, although admittedly this is again an additional step forward in terms of the skillset required. An interactive infographic not only helps set your design apart from the scores of other infographics out there, but can dramatically increase engagement and social media sharing.

You should obviously host the infographic on your own website, and utilise either Flash or HTML5 to achieve the desired effect. An excellent example of an interactive infographic is the Future Of Car Sharing, which does a phenomenal job of portraying the information whilst keeping the user engaged and entertained.

Another idea for reformatting your infographics is through a smartphone application - admittedly this could be potentially expensive, but there are companies out there who will turn your content into an app for free, in return for a cut of future profits. Infographics can make a good app too, particularly if you can come at it from the right angle - a good example is the Great War 100 app, which portrays genuinely interesting information about the first World War through infographics, and given we're approaching the 100 year anniversary of the conflict, it stands a good chance of making lots of sales. We actually supplied the infographics for this app, which you can see the advertisement for below:

Another good idea, particularly if you have a long infographic with lots of different stats, is to chop it up into slides and turn it into a slideshow (in either PowerPoint or PDF format) which can then be uploaded to platforms such as SlideShare or Scribd.

If you have released infographics previously (particularly if they're all in a similar industry), then you could also consider turning the infographics into an e-book, which can be sold on platforms such as Amazon, or distributed free of charge via your website. If you are considering placing it on your website as a free download, then consider using a service such as Pay With A Tweet, which will allow you to provide your e-book to visitors in return for a Tweet promoting the content.

Social Media

As well as doing your best to encourage sharing around your infographic, you should also make the effort to promote the content yourself via social media and bookmarking platforms. Obviously you should promote the infographic via your own (and your staff's) Twitter, Facebook, Digg, Reddit, and StumbledUpon accounts - particularly if you have fairly strong profiles on those platforms.

When you're promoting your infographic via Twitter or Facebook, rather than simply saying 'check out our brand new infographic,' consider taking individual statistics from the infographic (preferably the most attention-grabbing or surprising stats) and posting them out individually. We've found this tactic to be much more effective at encouraging click through rates (particularly from Twitter). In addition, don't forget to include relevant hashtags with your Tweets, as this can help widen your reach beyond your normal friends and followers, giving you a better chance of reTweets and referred traffic.

If you don't have a strong social media presence, then you could consider utilising a social media promotion agency, although this will of course increase your budget for project. With that said, however, the harder the content is pushed via social media the more likely you are to gain links from a varied selection of sources. If you do decide to take on a social media agency to help with promotion, make sure you check their previous campaigns, clients and results, as you'd be surprised at the number of 'agencies' who simply use paid services like Fiverr in order to push social media metrics.

It's also well worth completing some manual outreach in order to try and gain traction via 'influencers' in your industry, as if successful, this can have a dramatic impact on the number of social shares and links. Let's say for example you've produced a high quality and well researched infographic on how social media links affect search engine optimisation - why not try and Tweet people like Rand (SEOMoz), Joost (Yoast), or Richard (SEOGadget) and see if you can get them to share your content. Employing this kind of outreach might not result in any responses (depending on your content and how you get in touch), but it takes very little time or effort and can yield phenomenal results if an influencer does decide to help promote your infographic.

You can also further increase social media engagement by incentivising sharing - let's say you've produced a beautiful infographic that you know will be particularly popular amongst a certain market (gamers, just for example). Print out ten copies of your infographic and say you'll give them away as a competition prize - all people have to do to enter is share the infographic via Twitter, Facebook, or Google+ and the winners will be picked at random from those who've shared the content. We've used this kind of competition-entry format for clients in the past to great effect and it's certainly worth considering for promoting your content or increasing your social media brand traction.

Email Promotion

If your brand sends out regular emails to mailing list subscribers (like SEOmoz do with their monthly Moz-Letter), then be sure to include your infographic in your mailouts - place a small, eye-catching section of your infographic in the email with a link back to the full version on your website. This can not only increase traffic, but encourage both social media sharing and reposting (and therefore links).

Real World Marketing

This is often overlooked by agencies and brands looking to promote their infographic, but it's something that when done right (and combined with a link to an online presence, most notably a QR code) can be fantastic for increasing brand awareness and mobile traffic to a website.

Let's look at an actual example from one of our campaigns from last year. One of our clients is a luxury, five-star guesthouse in the city of Brighton, UK, and as part of their marketing campaign we produced an infographic on tourism in Brighton and Hove. As well as promoting the infographic online, we also printed physical copies of the infographic and placed it in relevant part of the City, including the local tourist office. We placed a simple QR code at the bottom of the infographic that allowed people to visit the website by scanning the code with their smartphone:

Infographic section via The Claremont Hotel Brighton (click the image if you'd like to see the full infographic).

Not only did this result in a dramatic increase in website traffic via mobile devices, but did a great job of improving overall brand awareness in Brighton. As an added benefit, we noticed that people were also talking about the infographic and posting photos of it on their social media profiles, increasing the number of social media links pointing at the Claremont website.

Admittedly, this technique isn't always suitable for infographics, but it's well worth bearing in mind if local customers are your primary focus.

Chasing Down Other Links

Now that you've produced your infographic, reformatted it, pushed it out to as many different platforms as possible, and promoted it via social media channels, it's time to chase down a few extra links by finding website who have reposted the infographic without a credit link.

The easiest ways to do this are with a standard Google search and taking advantage of the drag-and-drop function on the new Google Image search. Start by searching for the title of your infographic (as well as a few variations) and visit every website you find that has posted the content - do the same with the image search function, by dragging your infographic from your desktop into the Google Image Search.

This will give you more publishing sites, allowing you to create a list of sites that have reposted your content. From here you can visit each one and note down the URL and contact information of any site that has published your infographic without linking back to you, then simply email each one with a polite request for a credit link. Sure, some webmasters won't reply to you, but you can gain a few extra links by doing this with every infographic you publish.

So that's it for my infographic link-building post - did I miss anything? Do you have a useful tip for gaining additional links from your infographic design? Let me know in the comment below and I'll do my best to respond to every comment.

Post by John Pring, head of SEO and content creation at Designbysoap Ltd.


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What is Refinancing Worth?

The White House

Your Daily Snapshot for
Wednesday, June 20, 2012

 

What is Refinancing Worth?

President Obama has proposed a plan that will help millions of responsible homeowners save hundreds of dollars each month by refinancing their mortgages at today's historically low interest rates.

On average, homeowners who refinance will save $3,000 each year -- that’s enough to pay for three years' worth of auto insurance, among other things.

Learn more about the President's plan to help homeowners:

By the Numbers: $3000

In Case You Missed It

Here are some of the top stories from the White House blog:

Connecting with Education Sites
Secretary of Education Arne Duncan joins administration officials for an online summit focused on the Obama Administration’s policies including early learning, K-12, STEM, and college affordability

Fighting to Protect American Families from Mercury Pollution
Here are the facts about the Obama Administration’s Mercury and Air Toxics Standards.

Day One at the G-20 in Los Cabos
Here's what happened on first day of the G20 Summit in Mexico.

Today's Schedule

All times are Eastern Daylight Time (EDT).

1:30 PM: The Vice President attends a campaign event in Carmel, California

8:00 PM: The Vice President delivers remarks at the 37th Annual Convention and Career Fair of the National Association of Black Journalists

WhiteHouse.gov/live Indicates that the event will be live-streamed on WhiteHouse.gov/Live

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Seth's Blog : A lesson from a great architect

A lesson from a great architect

Architecture is a combination of sculpture and art and engineering and user interface. It is high tech and low tech at the same time, utilitarian and beautiful and virtually always budget constrained.

But do you know what great architects understand?

If you don't get it built, the work doesn't matter.

Great architects are able to be great because they know how to sell their ideas to their clients. (Or, they know how to find clients who will build their ideas. Same thing.)

If you're brilliant and undiscovered and underappreciated (in whatever field you choose), then you're being too generous about your definition of brilliant.



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marți, 19 iunie 2012

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Spanish Banking Audits Delayed Until September, Another €50 Billion Likely Needed

Posted: 19 Jun 2012 01:08 PM PDT

Via Google Translate from La Vanguardia, please note that Spanish banking audits are delayed until September
Audits of Spanish banks, which should conclude in late July, will be delayed until September in order to get "further examination", as reported by Efe sources close to the process.

The monitoring committee, which includes representatives from the Ministry of Economy and the Bank of Spain, have made this decision in order to have more complete information on the balance of Spanish banks.

PwC, Deloitte, Ernst & Young and KPMG will audit, as part of the second phase of the Government's strategy to dispel doubts about Spanish banks and in a first stage assessment of the consultants Oliver Wyman and Roland Berger , whose results will be announced Thursday.

A month ago, the Ministry of Economy and the Bank of Spain announced that at first these two consultants evaluated the balance sheets of Spanish banks, which was submitted to stress tests to detect the needs of capital.

These results are expected in two days, but the market as a given that the capital they require Spanish financial institutions as a whole will be between 60,000 and 70,000 million.

In addition to this assessment, in a second phase, four auditing firms to be responsible for further evaluation, expected end of July and is now delayed until September.

The audit will serve to contrast the expected losses due to impairment of assets of each bank and that the four companies evaluate loan portfolios of the entities in detail.

Not only real estate loan losses, which is where the government has required greater provisions, but also consumer credit to businesses and families, to refine the necessary write-downs.

That review, experts speculate, could force much of the sector to increase supplies significantly, so that together with the capital needs to be detected in the first phase of the evaluation may lead institutions to take up 150,000 million euros.
Why the Delay?

There is a political need to get the ESM up and running with a lower preliminary figure before the real audit reports a need for capital that exceeds 200% of the preliminary number (€60-70 billion), and €50 billion over the credit line number of €100 billion.

Amsusingly, the ESM has not been ratified by 13 of 17 countries, including Germany, although it has been signed by most countries.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


It's Just Impossible

Posted: 19 Jun 2012 11:16 AM PDT

The off-again, on-again, off-again Telegraph writer Ambrose Evans-Pritchard is back on-again with correct analysis in his post Greek agony drags on as Asphyxiation Bloc wins
Europe's establishment is delighted by the victory of New Democracy and pro-asphyxiation bloc. This relief is unlikely to last much beyond today, if that.

Greece's new leaders have a mandate from Hell. Almost 52pc of the popular vote went to parties that opposed the bail-out Memorandum in one way or another. There is no national acceptance of the Troika's austerity policies whatsoever.

The hard-Left Syriza party of Alexis Tsipras is arguably more dangerous in opposition, now fortified with big bloc of seats in Parliament. He can lacerate the government without responsibility as the state sheds 150,000 public sector workers, a fifth of the total.

It was for this outcome that the Greece's elected government was toppled last year in an EU Putsch. We now learn from ex-premier George Papandreou that this was "all Sarkozy's fault".

France's leader refused to let Papandreou call a referendum on the bail-out terms (which would almost certainly have passed), and Chancellor Angela Merkel went along with this shoddy act of EU colonialism. The EU threatened, in effect, to cut off Troika payments. The PASOK government was replaced by an EU-appointed technocrat.

A frightening precedent was set, and for no purpose. All the EU has achieved is to replace a truculent Greek parliament with one that is completely unworkable.

As for New Democracy, it cannot meet the terms of each quarterly Troika payment in the future even if it secures the support of PASOK socialists because the terms are – politically – impossible to meet.
As is always the case, Pritchard is at his finest when he analyzes what has happened or what is about to happen. He gets in trouble when he proposes solutions to prevent the inevitable.

In this case, Pritchard did not ask for Eurobonds, beg German chancellor Angela Merkel for steps the German supreme court will not allow,  ask the ECB to turn on the printing presses, or any other such silly ideas that tend to get him in trouble.

Instead, he simply (and correctly) stated "the terms are – politically – impossible to meet".

Mathematically Impossible

The Financial Times also notes the impossibility of it all.

Please consider the opening statements in  What happens if Angela Merkel gets her way

  1. The Bundesbank said there should be no banking union until there is a fiscal union. 
  2. Angela Merkel said that there should be no fiscal union until there is political union. 
  3. François Hollande said that there should be no political union until there is a banking union. 

The writer of that article should have stopped right there, but instead went on with nonsense about a "concrete proposal" from Hollande to let the ESM inject unlimited liquidity into banks via the ECB.

Excuse me for pointing out that neither the Bundesbank nor Merkel, nor the German constitution would allow such a stupid thing. That means we need to have a fourth bullet point.

4. The German supreme court will not allow a political union nor a fiscal union, nor a banking union without a German referendum.
 
In recognition of the impossibility of it all, I offer this musical tribute.



Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Six Reasons Why Italy May Exit the Euro Before Spain; Ultimate Occupy Movement

Posted: 19 Jun 2012 03:07 AM PDT

As I have said repeatedly, Greece is nothing but a sideshow, with the election last Sunday in France far more important than the election in Greece that has had everyone's attention.

For further discussion, please see Greek Election Sideshow; Socialists Win Absolute Majority in France; How Long Will the Bond Market Celebrate Another Glorious Can-Kicking Exercise?

Today I want to expand on that topic with the idea that Spain is a sideshow to Italy.

Rise of the Five Star Movement

Reader Andrea who is from Italy but now resides in France writes ...
Hello Mish.

As I told you some days ago, in Italy something quite new and disruptive is happening in the political landscape. As expected, the "Movimento 5 Stelle" (5 Stars Movement) had been the real winner of the recent round of regional elections a couple of weeks ago, and in my opinion it is worth to keep an eye on them especially in the light of the recent elections outcome in many European countries.

The founder of the movement is Beppe Grillo, a comic showman, very popular in the 70s and 80s. He was (unofficially) "banned" from Italian TV in the mid-80s when he made in a Saturday night show a very satiric (and funny) joke about the Socialist party and its chief Bettino Craxi, at that time Italian PM.

In the first half of 2000s he started Beppe Grillo's Blog, posting messages in a satiric style about economy, politics, ecology, society.

The movement is quite different from the other parties. It does not not a clear, hierarchic and defined organization. It is more a mixture of a method, a guideline and a set of rules to select candidates and programs and obtain its logo be part of the network.

Main Rules for the Five Star Movement

  • Not be an elected politician prior to 5 Stelle
  • Commit to stay in charge for no longer than 2 terms
  • Commit to take a minimum salary and give the rest back to the community
  • Post a public platform on the internet
  • Be willing to hold a public debate on the platform

[Mish Correction: I originally posted "Get out of the Euro and default on debt" as one of the rules for the 5-star movement. That is Beppe Grillo's personal position, not a mandate for the Five Start Movement.]

In the latest elections, Five Star Movement candidates have been able to get almost everywhere between 10 and 20% of votes, sometimes even more, all without a single minute of TV advertising or a single advertising page on newspapers.

The movement has simply spread via the internet, social networks and public meetings around the country. The message sent by their success is clearly: we are fed up with this corrupted, inefficient and incompetent political class.

The most important thing for the future months is the last stance Beppe Grillo has decided to take just before elections: get out of the Euro and default on debt. This position has been strongly criticized the rest of the political class and mainstream media, but the fact that Beppe Grillo has been breaking this "Taboo" and that there was a strong reaction by political and media environments, has finally opened the debate in Italy and has certainly made people to start seriously think about it, despite the fact that Italy so far had no financial help from the EU or IMF.

The Monti consensus is now rapidly decreasing, mainly because the tax increases are starting to bite and because he seems unable to cut waste of taxpayer money as he promised. Political elections in Italy will take place in the spring of 2013: Beppe Grillo said after recent elections "see you in the next Parliament".

If he will be present in the next Parliament with a significant number of members (which is likely), you can be sure that the topic will be more and more debated.

It already is. In numerous talk-shows, the issue is now openly debated. Discussing Italy leaving the eurozone one year ago was almost considered as "heretic". Now it's not.

Best regards, Andrea.
Ultimate Occupy Movement

That email from Andrea actually came in several weeks ago. In a recent followup post Andrea writes ...
Hello Mish,

Movimento 5 Stelle just won the its first Mayor of an Italian significant city, Parma (more known for its Parmesan cheese and the Parma ham).

For a movement born just 3 years ago and with no funds it is extremely significant. The prior local administration of this city had to resign,  pushed out by an angry crowd literally waiting for them outside city hall after discovering that they had indebted the city up to bankrupt.

Sounds familiar?
Regards, Andrea
The only way the "Occupy Movement" is ever going to work is the way it just worked in Italy: vote the bums out, not in favor of more bums, but rather in favor of candidates with principles.

European Unity on the Rocks

Inquiring minds are digging through a fascinating six-page report by PEW Research entitled European Unity on the Rocks.
The report is a survey on attitudes within the eurozone towards the EU, the euro, and how countries in the EU view each other. Here are a few tables and comments.



Across the eight European Union member countries surveyed, a median of only 34% think that European economic integration has strengthened their country's economy. Indeed, majorities or near majorities in most nations now believe that the economic integration of Europe has actually weakened their economies. This is the opinion in Greece (70%), France (63%), Britain (61%), Italy (61%), the Czech Republic (59%) and Spain (50%). Only in Germany (59%) do most people say that their country has been well served by European integration.

Among the five euro area nations surveyed, a median of only 37% believes having the euro as their currency has been a good thing. This includes just 30% of the Italians and 31% of the French. At the same time, the three non-euro zone countries surveyed are quite happy they have kept their own currencies, including nearly three-quarters of the British (73%).



Among the Europeans surveyed, only in Germany is there a growing majority that believes that integration has been an economic boon for the nation and a strong majority that says EU membership has been good.

Despite the falloff in EU favorability, most Europeans surveyed still see the European Union in a positive light, including 69% of the Poles, 68% of the Germans and 60% of the French and Spanish. And more than half in all five euro area countries surveyed – including 71% of the Greeks, 69% of the French and 66% of the Germans – would like to keep the euro as their currency and not return to the drachma, the franc, the mark or other national currencies.



The euro crisis has also undermined support for free market capitalism. Solid majorities in only three of the eight countries surveyed – Germany 69%, Britain 61%, and France 58% – still believe that people are better off in a free market system. Moreover, since 2007, before the global financial crisis began, belief in capitalism is down 23 percentage points in Italy, 20 points in Spain, 15 points in Poland, 11 points in Britain, and nine points in the Czech Republic. In comparison, over that same time frame backing for the free market has remained relatively unchanged in the United States.
44% off Italians View the Euro as a Bad Thing, Only 30% a Good Thing

The critical chart is the second one. 44% of Italians view the euro as a bad thing and only 30% a good thing. That is the biggest negative spread in the survey. In contrast, Greece has the largest favorable spread at +20 percentage points.

IPOS Poll Shows Only 50% of Italians Would Vote to Keep the Euro

Inquiring minds are also digging through a May 2012 Eurozone Poll by IPOS.
As fears reverberate through financial markets that Greece could leave the euro zone and throw the region—and the rest of the world—into economic turmoil, a new poll of citizens in some of the most crucial countries engaged in the debate, debacle and damage control—Greece, Germany France, Italy and Spain—indicates that, on average, a majority (60%) with a decided view would support a national referendum in their country to decide whether they should keep the Euro as their currency and if there was such a referendum, an average of six in ten (65%) of decided citizens would vote to keep the currency.

In Italy, half (52%) would support holding a referendum in their country to determine the future of the Euro versus just over one third (36%) who would oppose having one and 12% say they "don't know". Backing out the undecided, six in ten (60%) Italians support and 40% oppose having a referendum. Asked how they'd vote in a referendum if it were to take place today, half (50%) of Italians say they'd vote to keep the Euro as their country's currency while four in ten (38%) would vote to leave it—8% say they "don't know" how they'd vote and 4% say they wouldn't vote. As such, backing out the undecided and those who say they wouldn't vote, of decided Italian voters, six in ten (57%) would vote to stick with the Euro while 43% would vote to leave it.
Totals by Country

Germany: 51% Keep Euro, 38% Leave, Other 11%
Spain: 55% Keep Euro, 32% Leave, Other 13%
France: 62% Keep Euro, 24% Leave, Other 14%
Italy: 50% Keep Euro, 38% Leave, Other 12%
Greece: 70% Keep Euro, 20% Leave, Other 10%

Notice that Italy followed by Germany have the least support for retaining the euro.

As an amusing sidelight, recall that Greek prime minister George Papandreou was forced to resign when he proposed holding a referendum on the euro. That foolish action by the EMU helped give rise to Syriza and the radical left.

Italy Too Big to Rescue

Via a somewhat choppy Google translation, Spiegel columnist Wolfgang Münchau is discussing Just Before the Collapse
The interest on Spanish ten-year bonds are now at 6.8 percent - and in the midst of a recession and unemployment at nearly 30 percent. It is now only a matter of time before Spain itself must be under the parachute. According to an estimate by the U.S. bank JP Morgan has to finance Spain in the years 2012 to 2014 about 350 billion euros of debt or refinance. If you add the 100 billion € at current Bank assistance so that the entire financial cushion for the new rescue mechanism ESM would be exhausted. Because maybe there is still room for Cyprus, but for anyone else

The problem is not just the size of the ESM, but its structure. Here are liable all who are outside of the screen, all for less. If Spain also joins them, two things happen simultaneously. The total guarantees to skyrocket. And there are few countries that stand up for those guarantees. One cannot solve the problem so you should expect to increase the rescue easy.

Italy was never prepared for the euro

Spain still fits just below the screen, but in Italy there is no solution. With long-term interest rates of more than six percent, a debt of 120 percent growth and a structural weakness of Italy can not maintain his membership in the euro. Italy needs € bonds - that is a permanent reduction in financing costs through a joint debt of the euro area - possibly even a debt and a strategy for improving competitiveness.

The appointment of Mario Monti the Italian prime minister last year, the audience first with euphoria in the markets, but the record is disappointing . He sat on the wrong reforms, and he lacks the political power base. His poll numbers have slipped into the basement, and within his coalition to support the leaves also. Some even speak of the necessity of early elections.

Italy's problem is not his prime minister. The country was never prepared for the euro. With the entry of Italy has lost its competitiveness gradually. Even in good years, the economy grows just one percent. And now Italy is in deep recession and has a weak government with a maturity period of a few months.

Italy is not far away from the point at which it can finance itself without outside help is not continued in the markets. But Italy is actually too big for the rescue. According to JP Morgan fund, the Italian government until 2014 a total of 670 billion euros in the markets. Italy and Spain come together around one trillion euros. One would thus doubling the screen to get the two countries including. And then the whole load Germany and France would jointly contribute. That would be an economic and political suicide.

The combination of banking, fiscal and political union would solve the problem. It is not the noble principle of a political union, but the actual debt restructuring that would work here. With a press release it will not solve the crisis. If the Euro-summit at the end of the month on a ten-year timetable for a political union agrees, the effect fizzles out in the markets, because Italy still puts it in a debt trap.

Then in Italy could increase due to the unacceptably high rates of political pressure for a Euro release. In this case I would expect that Italy would no longer service its foreign debt and then. Italy, unlike Spain would be able to do such a thing.
Italy Holds Enough Gold to Prevent Hyperinflation

According to the Telegraph,Italy's gold 'worth only a tenth of bailout it needs'
Italy holds 2,451.8 tonnes of gold – the third highest of any central bank in the world. Only the US, with 8,133.5 tonnes and Germany, with 3.401 tonnes holds more. The International Monetary fund also has reserves of 2,814 tonnes.

One tonne is the equivalent of 32,150.75 Troy ounces. The gold price is currently at about $1,764 per troy ounce, so one tonne of gold is worth about $57.6m. This means Italy's total central bank holdings are worth around $141bn (£88.6bn).

According to Gary Jenkins, a fixed income analyst at Evolution Securities, Italy requires $1.4 trillion to fully cover its bail out.

This means Italy's gold holdings are worth about one-tenth of the estimated total amount required.

The cost of repaying Italy's debt by 2013 is expected to hit £424.9bn, with the country's total debt currently standing at about $1.9 trillion.
Although Italy's gold is woefully short of what it needs to cover its debt (at least at these prices), having the third highest central bank holding of gold in the world is easily enough to avoid hyperinflation.

Six Reasons Why Italy May Exit Before Spain

  1. Rise of the Five Star Movement
  2. 44% of Italians view the euro negatively, only 30% favorably. That is biggest negative spread in the eurozone. In Spain more view the euro positively than negative, albeit by a small 4 percentage point spread.
  3. A separate poll shows a mere 50% of Italian would vote to keep the euro if given a chance. That is the lowest percentage in the eurozone.
  4. Italy is too big to bail
  5. Interest rates have reached a point where Italy will struggle to roll over its debt
  6. Eurozone Impossible Politics: 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. And François Hollande said that there should be no political union until there is a banking union.

Here is the bonus seventh point: Italy has enough gold reserves that it could avoid hyperinflation if it left the euro.


As I said in November of 2011, Eventually, Will Come a Time When ....
Eventually, there will come a time when a populist office-seeker will stand before the voters, hold up a copy of the EU treaty and (correctly) declare all the "bail out" debt foisted on their country to be null and void. That person will be elected.
That person was not Marine Le Pen, perhaps it will be Beppe Grillo.

Regardless, here is the bottom line: If Germany doesn't leave the euro, Italy must.

Addendum:

I posted "Get out of the Euro and default on debt" as one of the rules for the 5-star movement. That is Beppe Grillo's personal position, not a mandate for the Five Start Movement. The error was mine in reshuffling things around and adding bullet points, not Andrea's.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List