duminică, 29 decembrie 2013

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Toxic Smoke Cloud Engulfs Greece; Six Years of Relentless Recession; Horrific Statistics

Posted: 29 Dec 2013 11:35 PM PST

Please consider a mass of grim statistics regarding Greece, via translation from the El Pais article: Ruined Greece takes the helm of the EU in the first half of 2014.
On January 1, Greece assumes the rotating presidency of the European Union in a state close to suffocation, not only via austerity adjustments since 2010, but also literally, by a toxic cloud fueled by wood fires that replace conventional heating.

The beret dense smog that grips these days Athens or Thessaloniki is also a metaphor for the political gridlock: the government insists on not lowering the tax on heating oil to intractable limits for broad social layers, but a group of 41 deputies of the conservative New Democracy (ND), rector of the bipartite Executive, has unsuccessfully raised a parliamentary motion to reduce it. An authentic rebellion aboard the party of Prime Minister Andonis Samaras. ND and Pasok socialist now number just 152 seats in a House of 300, and the rebel MPs representing about one-third in the ranks of ND.

The mutiny of the conservatives is just the penultimate chapter of an intestine, economic, but with clear political implications, the result of six years of recession and unfathomable weariness of citizenship to the endless cuts crisis.

Horrific Statistics

  • A 27.4% unemployment (nearly 52% among those under 24 years)
  • 3.8 million Greeks living in poverty or social exclusion in 2012 (400,000 more than the previous year)
  • 350,000 households without electricity for non-payment bills
  • 30% of the population have no access to public health care
  • Virtual paralysis of the universities, which since September run almost unattended by the dismissal of officials
  • Three killed by asphyxiation because of home fires for warmth
  • Four out of five blocks of flats facing the winter without heating due to inability to afford it
  • 21 continuous quarters recession
  • 34.6% of the Greek population at risk of poverty or social exclusion

Political Setup

  • SYRIZA, leads most polls of likely voters ahead of ND
  • Neo-Nazi Golden Dawn caress between 9% and 11% of the votes and consolidated as the third political force
  • Only 33% of citizens believe possible ND victory if the election were held today
  • The once mighty Pasok, houses more than a trashy expectations 5% support, compared with 44% of votes in 2009

How much longer the "New Democracy" government of Prime Minister Andonis Samaras can hang together remains to be seen.

Should Samaras lose a vote of confidence for any reason, the Greek house of debt that that cannot and will not be paid back all comes crashing down.

For those counting, Greece received 240 billion euros in aid, in a foolish attempt by the Troika to keep Greece in the eurozone. Most of the loan has been earmarked for the recapitalization of banks and the payment of interest on the debt, which now accounts for 157% of GDP.

Germany and the ECB are adamant there will not be writedowns on that debt. Both are in fantasyland.

Default, accompanied by a messy eurozone breakup awaits.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Voters Take Negative View of Labor Unions; Liberals in Favor of Strikes (Until Strikes Happen); Aging Population an Anti-Union Force?

Posted: 29 Dec 2013 12:03 PM PST

In what is decidedly a good thing for California as well as the nation at-large, a recent Field Poll shows California Voters Take Negative View of Labor Unions.
According to the latest Field Poll, California voter views of labor unions have taken a decidedly negative turn over the past two and one-half years. Whereas a March 2011 survey found voters by a four to three margin, believing that labor unions generally do more good than harm, opinions about this have shifted, with more voters now saying they do more harm than good, 45% to 40%.

The poll also finds Californians sharply divided on the question of whether public transit workers should be allowed to go on strike, with 47% feeling they should continue to have this right, while 44% believe they shouldn't. Voters in the nine-county San Francisco Bay Area, who faced a paralyzing strike by its Bay Area Rapid Transit (BART) workers in both July and October and who face the possibility of a third strike, are more likely than voters elsewhere to oppose public transit workers having the right to strike.

Overall Results



click on any chart for sharper image

Demographic and Political Breakdown



Union Household Trends

  • Those on the take at the expense of everyone else (unions) are overwhelmingly pro-union.
  • Even among union households, note the sharp 13% increase in the percentage of people who say unions do more harm than good. 
  • By a 49-35 margin, nonunion households now say unions do more harm than good.

Primary Union Support

  • Union households
  • Los Angeles County
  • San Francisco Bay Area
  • Age Group 18-29
  • Latinos
  • Blacks

The age demographic is interesting. Are teachers pounding pro-union propaganda into kids heads from age six through college?

Support for Ability to Strike



Those in Favor of Ability to Strike

  • Democrats
  • Independents
  • Liberals
  • Union households
  • Los Angeles County
  • Age Group 18-29
  • Age Group 30-39
  • Latinos
  • Blacks

Those Against Strikes

  • Republicans
  • Conservatives
  • San Francisco Bay Area
  • 65 and older
  • Asians

These results are extremely interesting. Of course we see the expected political breakdowns.

Aging Population an Anti-Union Force?

Those 40-64 are against strikes by a  49-43 margin. Those 65 and older are against strikes by a 50-39 margin.

Those over 65 may be increasingly dependent on reliable public transportation and may be on fixed income as well. Those on fixed income budgets do not like price hikes because their income cannot keep up.

Implications suggest that an aging population is an anti-union force.

Liberals in Favor of Strikes (Until Strikes Happen)

On the humorous side, take a good look at San Francisco which suffered through a massive BART (Bay Area Transportation) strike. For details, please see my October 18 post BART Holds San Francisco Hostage; Best Way to Deal With Public Unions

The San Francisco Bay area, a bastion of liberal foolishness, is now against the ability of public transportation strikes by a 52-41 margin.

Conclusion: Liberals are all in favor of strikes until they are personally affected by them!

What follows is a repeat of things I have stated earlier. Some might not be aware but even FDR saw the light regarding public unions.

Message From FDR

Inquiring minds are reading snips from a Letter from FDR Regarding Collective Bargaining of Public Unions written August 16, 1937.
All Government employees should realize that the process of collective bargaining, as usually understood, cannot be transplanted into the public service. It has its distinct and insurmountable limitations when applied to public personnel management.

The very nature and purposes of Government make it impossible for administrative officials to represent fully or to bind the employer in mutual discussions with Government employee organizations.

Particularly, I want to emphasize my conviction that militant tactics have no place in the functions of any organization of Government employees.

A strike of public employees manifests nothing less than an intent on their part to prevent or obstruct the operations of Government until their demands are satisfied. Such action, looking toward the paralysis of Government by those who have sworn to support it, is unthinkable and intolerable.
For more on public union slavery, coercion, bribery, and scapegoating please see ...



Best Way to Deal With Public Unions

The best way to deal with public unions is to not deal with them at all. Ronald Reagan had the right idea when he fired all of the PATCO workers.

Scott Walker had the right idea in Wisconsin when he ended collective bargaining of some public unions. Unfortunately, Walker failed to include police and firefighters.

Actual Wisconsin results prove Union-Busting is a "Godsend"; Elimination of Collective Bargaining is the Single Best Thing one Can do for School Kids

It's time to implement national right-to-work laws and put an end to public union collective bargaining nationally.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

New Law in France: Limos Must Wait 15 Minutes Minimum Before Picking Up Rides

Posted: 29 Dec 2013 10:51 AM PST

Want to arrange a limo in France to take you to the airport or go on a private tour? Thanks to a new law in France, you have to wait a minimum of 15 minutes except at 4 or 5 star hotels.

The reason: taxis persuaded government that chauffeur driven limos are "unfair competition".

Via translation from Les Echos, please consider Taxis against VTC: the conflict continues.

Note: "VTC" (Voiture de Tourisme avec Chauffeur) translates roughly as chauffeur driven touring car.
Starting January 1, limos must wait 15 minutes before they can pickup passenger. According the Minister of Crafts, Trade and Tourism and the Interior Minister, the delay helps distinguish the activity of VTCs from taxis.

The "Competition Authority" criticized the decree, emphasizing in particular that the radio taxis also operate on reservation. The "Competition Authority" claims the situation is "detrimental to consumers."
I had to look this up because it's the first I have heard of France's "Competition Authority".

Wikipedia explains "The Autorité de la concurrence (English: Competition Authority) is France's national competition regulator."

It's shocking the Autorité de la concurrence actually translates its rulings and opinions into English. Here are some examples.

Opinions translated into English


What's even more shocking than decisions translated into English is the fact that the Autorité de la concurrence appears to be on the right side of the issue (Does someone at the Autorité de la concurrence operate a VTC on the side?)

Regardless, Hollande's Minister of Crafts, Trade and Tourism and the Interior Minister ruled in favor of taxis. But the taxis are not fully appeased either. Taxis don't want competition from VTCs at all.

This is the way things "work" in France.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Seth's Blog : Coming from "no"

 

Coming from "no"

The difficult task is to turn around a no.

Not, "no, I've thought about it, but I'm not interested," but, "no, I feel like saying 'no', whatever you're offering, the answer is no."

If the fractious child or the skeptical prospect or the frightened boss is coming from a place of no, your proposal just isn't going to work.

Shaking that rattle or waving that spreadsheet isn't going to work, because it's not going to be judged on the merits. The facts are irrelevant... if your partner (and yes, the person you're with right now is your partner, engaged in a dance that will end with yes or no) is in search of a no, nothing is going to go right.

The best path, then, is to first work on the 'no'. Not the pitch or the facts or the urgent thing you need approved right now. First, talk about the dance, and the goals, and how it feels to get to a yes.

Then tell me your story.

       

 

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sâmbătă, 28 decembrie 2013

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


France Seeks Another Tax on Facebook, Google And YouTube, to Finance "French Culture" Cinema

Posted: 28 Dec 2013 12:12 PM PST

The economic stupidity in France is astounding. It's hard keeping up with all the inane ideas of President Francois Hollande's socialist administration. Here's another one of Hollande's ideas for your amusement.

RT reports French broadcasting watchdog CSA eager to tax YouTube, Facebook, Dailymotion
France's Superior Council of Audiovisual, an independent broadcasting authority, wants to impose taxes on media giants like YouTube, Facebook and Dailymotion to force them to contribute to financing French culture.

The sites fall into the same category as video-on-demand services, the organization said; so they would be subject to French cultural protection laws that require distributors to hand over some of their revenues to help subsidize productions.

"These platforms have been developing partnerships with audiovisual publishers and content providers for years, with which they share revenues from advertising," the report [in French] said.

The watchdog has urged the French government to conduct research into the websites' profit from professional productions and to determine how much they may be required to pay.

The obstacle which remains, though, is the fact that the legislation is only applicable to websites that are based in France. In the future, the organization is planning to demand all video-on-demand services to declare their existence to the CSA.
Culture Tax

Bloomberg reports France's 'Culture Tax' Could Hit YouTube and Facebook
Should YouTube subsidize le cinéma français? France's audiovisual regulator thinks so. In a report this week, the Superior Audiovisual Council (CSA) says that video-sharing websites should be subject to a tax that helps finance the production of French films and TV shows.

The so-called culture tax, totaling more than €1.3 billion ($1.8 billion) annually, is paid by movie theaters, broadcasters, and Internet service providers in France. The CSA contends that YouTube (GOOG), French video-sharing site DailyMotion, and their ilk are effectively providing video-on-demand services, which are already subject to the tax.

Separately, France is considering a tax on smartphones, tablets, and other devices as another source of revenue for cultural subsidies. A government-commissioned report, released in May, said that a sales tax of 1 percent should be imposed on electronic devices capable of accessing movies, music, and other content. The proposed tax would raise an estimated €86 million annually that would be used to finance the "cultural industries' digital transition," France's Culture Ministry said at the time.

Trade associations for French Internet and technology companies spoke out against the proposal, which the government has not yet acted on. Rejecting the government's assertion that a 1 percent tax would be "painless," the groups warned in a statement in July that the government should be encouraging growth of the digital economy, rather than taxing it.
Subsidies For Films No One Watches

Forbes has some interesting comments as well. Please consider French Try Another Tax On Facebook, Google And YouTube
France is trying to impose another tax upon Facebook, Google and YouTube. It's going to go into subsidies for all those French films that no one ever watches. Which is, of course, why they need subsidy.

The basic background here is that the French are so proud and so confident of the superiority of their culture that they fear it will be wiped out by all these imports of American and other "Anglo" productions. They thus have various limits on how many of these imports there can be: even to the point that in the past they have had exemptions from the standard European Union strictures on the free movement of goods and services. They've even got a law stating that English cannot be used in advertising: this named after the Minister that brought it in, Jack Allgood.

There is just one small problem with this:

The obstacle which remains, though, is the fact that the legislation is only applicable to websites that are based in France.
The moral of the story is "Don't base websites, start businesses, or expand businesses in France".

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

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Seth's Blog : A choice is not an ultimatum

 

A choice is not an ultimatum

Most of us, quite rightly, react poorly to an ultimatum. That's because an ultimatum is an emotional affront, a deliberate break in a relationship. Do this or else!

Often, our instinct is to respond to confrontation with confrontation. Ultimatums rarely work because we react to the emotion instead of responding intelligently.

On the other hand, giving your partner in a negotiation or a sale a choice between two outcomes is a generous act, a form of truthtelling that helps both of you. We all make choices, and choices have consequences. Helping people understand them in advance leads to better decisions.

       

 

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vineri, 27 decembrie 2013

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Obamacare Showdown: Missouri Bill to Gut Obamacare, Ban Penalties, Ban Healthcare Exchange; How Would Obama Respond?

Posted: 27 Dec 2013 04:30 PM PST

If enough states act, we are on the way to a constitutional showdown over Obamacare. The Washington Times reports Missouri bill would gut Obamacare
Next month, the Missouri Senate will consider a bill which would effectively cripple the implementation of the Affordable Care Act within the state.

Following the lead of South Carolina, where lawmakers are fast-tracking House Bill 3101 in 2014, and Georgia, where HB707 was recently introduced by Rep. Jason Spencer, Missouri State Senator John T. Lamping (R-24) pre-filed Senate Bill 546 (SB546) to update the Health Care Freedom Act passed by Missouri voters in 2010. It passed that year with more than 70% support.

SB546 would ban Missouri from taking any action that would "compel, directly or indirectly, any person, employer, or health care provider to participate in any health care system." That means the state would be banned by law from operating a health care exchange for the federal government.

The bill also proposes suspending the licenses of insurers who accept federal subsidies which result in the "imposition of penalties contrary to the public policy" set forth in the legislation. Since it is unlikely that any insurer would then accept a subsidy, not a single employer in the state could be hit with the employer-mandate penalties those subsidies trigger.

Following significant portions of the Tenth Amendment Center's four-step plan to nullify Obamacare on a state-level, Fox News Senior Judicial Analyst Judge Andrew Napolitano noted that such actions were not just legal, but effective.

"If enough states do this, it will gut Obamacare because the federal government doesn't have the resources … to go into each of the states if they start refusing," he said.

Tenth Amendment Center national communications director Mike Maharrey suggested that a large-scale effort against the Act would be coming. "Our sources tell us to expect at least ten states moving in this direction in the coming months. But that will only come true if people start calling their state representatives and senators right now. State lawmakers need to know they should introduce bills to ban the state from participating in any Obamacare programs."
Nullify Obamacare

Inquiring minds are investigating the Nullify Obamacare website for further information.
INTRODUCTION

States have always held the prerogative of whether or not they will enforce or participate in federal acts or regulatory programs.  This legislative package seeks to ban the state from enforcing or assisting in the enforcement of the federal Patient Protection and Affordable Care Act of 2010.  It also seeks to ban the State, along with all its political subdivisions, from operating or participating in the operation of a health care exchange under the federal act.  It also provides for penalties for violations of the act.

FOUR STEPS

Step 1: Ban State Enforcement, Participation and Material Support
Step 2: Reject Medicaid Expansion
Step 3: Protect Residents from Mandates
Step 4: Challenge the IRS's illegal ObamaCare taxes

LEGAL BASIS

The "approach is on sound legal footing"
-Mercer University law professor David Oedel, part of the legal team that represented Georgia in its court challenge to Obamacare

There is a long-standing legal tradition which supports the choice of the State to determine whether or not they will participate in a federal act.

James Madison, writing in Federalist #46, recommended state responses to "unwarrantable" (unconstitutional) or merely "unpopular" federal acts which included "a refusal to cooperate with officers of the Union."

Supported by Supreme Court opinions spanning more than 150 years, the "anti-commandeering doctrine" is the legal principle that states are not required to help the federal government enforce federal acts or regulatory programs.

The cases are as follows:

* 1842 Prigg: The Court held that states were not required to enforce federal slavery laws.
* 1992 New York: The Court held that Congress could not require states to enact specified waste disposal regulations.
* 1997 Printz: The Court held that "the federal government may not compel the states to enact or administer a federal regulatory program."
* 2012 Sebelius: The Court held that states could not be required to expand Medicaid even under the threat of losing federal funding.

Anti-commandeering is virtually undisputed by legal experts from both the left and right.

EFFECT

A number of states following this plan will "gut Obamacare."
-Judge Andrew Napolitano on Fox News, 12-10-13
For more details on each of the steps, please see Model Legislation: Nullify Obamacare in 4 Steps

How Would Obama Respond?

Regardless of the constitutionality of this action by states, how could Obama act in response?

I suppose Democrats could cut off various state funding. But that would take a Democratic controlled Congress (and its pretty safe to assume that's not going to happen).

Would the Federal government setup health exchanges in states? With what funding?

This could get interesting if even three states nullify Obamacare, and allegedly 10 states are considering such action.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Fear the Octopus: Judge Says NSA Phone Surveillance Is Legal; Case Likely Headed to Supreme Court

Posted: 27 Dec 2013 11:48 AM PST

December 16 Ruling vs. Ruling Today

On December 16, in a rare victory for constitutional freedoms, U.S. District Court Judge Richard Leon, ruled NSA phone program likely unconstitutional. (See District Court Judge Rules NSA Phone Taps Likely Unconstitutional; 68 Page Ruling Cites "Orwellian Technology" and Unreasonable Searches).

In contrast, a Manhattan District judge ruled today NSA Phone Surveillance Is Legal
U.S. District Judge WIlliam H. Pauley III in Manhattan sided with the government in his decision Friday, calling the collection program a "vital tool" to combat terrorism and deeming it "the Government's counter-punch."

The ruling stands in conflict with a decision issued earlier this month in a separate case by a federal judge in the District of Columbia who said the program "almost certainly" violated the Constitution.

The New York case was brought in June by the American Civil Liberties Union, which claimed that the NSA was violating the group's constitutional rights by collecting metadata from the ACLU's phone calls. It was among the first big legal challenges against the NSA program after it was disclosed in June.

The group sought a court order declaring that the mass call logging violated federal law governing foreign intelligence surveillance as well as constitutional free speech and search-and-seizure protections.

Judge Pauley disagreed. "The right to be free from searches and seizures is fundamental, but not absolute," he wrote.
Case Likely Headed for Supreme Court

The Guardian comments on today's NSA Phone Ruling.
A legal battle over the scope of US government surveillance took a turn in favour of the National Security Agency on Friday with a court opinion declaring that bulk collection of telephone data does not violate the constitution.

Friday's ruling makes it more likely that the issue will be settled by the US supreme court, although it may be overtaken by the decision of Barack Obama on whether to accept the recommendations of a White House review panel to ban the NSA from directly collecting such data.

But the ruling from Judge William Pauley, a Clinton appointee to the Southern District of New York, will provide important ammunition for those within the intelligence community urging Obama to maintain the programme.

Judge Pauley said privacy protections enshrined in the fourth amendment of the US constitution needed to be balanced against a government need to maintain a database of records to prevent future terrorist attacks. "The right to be free from searches is fundamental but not absolute," he said. "Whether the fourth amendment protects bulk telephony metadata is ultimately a question of reasonableness."

Pauley argued that al-Qaida's "bold jujitsu" strategy to marry seventh century ideology with 21st century technology made it imperative that government authorities be allowed to push privacy boundaries.

"As the September 11 attacks demonstrate, the cost of missing such a threat can be horrific," he wrote in the ruling. "Technology allowed al-Qaida to operate decentralised and plot international terrorist attacks remotely. The bulk telephony metadata collection programme represents the government's counter-punch: connecting fragmented and fleeting communications to re-construct and eliminate al-Qaida's terror network."

The ACLU said it would appeal the decision, starting in the New York circuit. "We are extremely disappointed with this decision, which misinterprets the relevant statutes, understates the privacy implications of the government's surveillance and misapplies a narrow and outdated precedent to read away core constitutional protections," said Jameel Jaffer, ACLU deputy legal director.

Judge Pauley said his ruling did not mean it was right to continue with the program, which he acknowledged was a "blunt tool" that "imperils the civil liberties of every citizen" if unchecked. "While robust discussions are under way across the nation, in Congress, and at the White House, the question for this court is whether the government's bulk telephony metadata program is lawful. The court finds it is," he wrote. "But the question of whether that program should be conducted is for the other two coordinate branches of government to decide."
Conflicted Ruling

Pauley appears to to talking out of both sides of his mouth at the same time, each side saying a different thing.


  1. "The right to be free from searches and seizures is fundamental"
  2. "The right to be free from searches and seizures is not absolute" 

  1. Collection program a "vital tool".  Al-Qaida's "bold jujitsu" requires government to push privacy boundaries.
  2. Phone collection "blunt tool" that "imperils the civil liberties of every citizen" if unchecked. 

  1. "Bulk telephony metadata program is lawful"
  2. "It's for the other two coordinate branches of government to decide"

Fear the Octopus

Is Pauley a constitutional as well as hypocritical wimp or what? Hopefully the Supreme Court gets it right.

My fear is Obama makes some totally meaningless changes in the program to get the Supreme Court ruling he wants, then after the ruling, lets the NSA do whatever it wants, which is to collect everything on everybody, stored permanently.

Nothing Beyond the Octopus Reach

For more on the NSA and its illegal actions, please see the chilling report Nothing Beyond the Octopus Reach

My conclusion ...
The Patriot Act was anything but. It should be scrapped. James Clapper [Obama's Intelligence Director] should be prosecuted and spend the rest of his life in prison where he can think about the true meaning of patriotism.

Meanwhile, those looking for a true patriot ought to stand up and salute Edward Snowden. He risked his life, security, and personal freedom to protect the US constitution. What's more patriotic than that?
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Madrid Bans Vacation Home Rentals to "Protect Tourists" and "End Unfair Competition"

Posted: 27 Dec 2013 09:55 AM PST

In the name of "Protecting Tourists" Madrid Prohibits Vacation Rental Homes. Via Mish-modified translation from El Economista ...
Proposed rules would effectively prohibit homeowners from renting their homes. Rental licenses will be only given to properties for primary uses (hotels, offices, etc.), not to individuals for temporary use.

The Community of Madrid seeks "to establish minimum requirements designed to "protect the rights of tourists" and to "end unfair competition."

News follows rent laws published in June in which prime minister Mariano Rajoy allowed each of the 17 regions to legislate rentals on their own.

If approved, individuals will find it almost impossible to temporarily rent their home through internet sales as it will be very difficult to obtain a license to conduct such activity. According to the Hoteliers Association of Madrid (AEHM), there are currently about 8,000 community accommodations.
Clearly, the proposal seeks to eliminate competition to the unfair advantage of hotels. If hotels cannot compete against homeowners, they are charging too much for what they offer.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

European Monetary Union Misnamed; I Propose GEU (German Economic Union) or USG (United States of Germany)

Posted: 26 Dec 2013 11:23 PM PST

The irony and hypocrisy in chancellor Angela Merkel's first parliamentary speech of her third term would be astounding were it not par for the "Everything for Germany" course of action.

Please consider Chancellor Urges Reforms to Preserve Euro
In her first parliamentary speech since her re-election for a third term on Tuesday, she warned that Europe needed to take further action to make the euro zone crisis-proof.

More European Control

"I know that pushing through treaty changes in the member states can be difficult, but if you want more Europe, you have to be prepared to develop it further," Merkel said. "In a world that is constantly changing, we can't stand there and say that at some point we agreed the Lisbon Treaty and there's no need to change it again. This won't work."

Germany wants closer economic policy coordination and will push at a summit of European Union leaders on Thursday and Friday for members to agree binding contracts with the European Commission to implement further reforms.

It is also pushing for changes to the Lisbon Treaty to give greater European control over policy. Germany's closest ally in Europe, France, opposes such a move, as do other member states.

"European unity remains one of the most important tasks of the grand coalition," said Merkel. "Germany is only strong if Europe is strong."

Criticism of EU Green Energy Probe

She said she would fight an EU probe announced on Wednesday into exemptions from a green energy surcharge for some 2,000 German companies. The European Commission is examining whether the exemptions, totalling some €5 billion and granted to heavy energy users like the steel industry, were unfair and should be repaid.

The German government would not tolerate a weakening of German industry or job losses, she said. "Germany wants to remain a strong industrial location, we need competitive companies," she said. "This is about companies and when it's about companies, it's about jobs."

She said Germany's new Economy and Energy Minister, Social Democrat Sigmar Gabriel, would make this very clear to the European Commission.
Merkel the Hypocrite

Allegedly Merkel wants more EU controls. She is even at odds with France over controls. But let the EU propose energy controls and all of a sudden she does not want them.

Recall that Germany backtracked on the  banking union. Heck, Germany fought bitterly to have some of its banks specifically excluded from banking union provisions, and won.

Now Germany wants more integration. Except of course when it doesn't, like a true banking union deal a week ago, and energy controls today.

I am certainly not defending EU energy policy. But I am critical of the inherent hypocrisy in Merkel's plea for more EU controls when she does not want more EU control, but rather more German control.

Since this is par for the course, (and it will remain that way), let's put an appropriate label on it.

Do You Prefer

  1. GEU - German Economic Union
  2. USG - United States of Germany

Is it number 1 or number 2?

The question is moot actually, except for the short-term. Long-term, the European Monetary Union is doomed.

I made the case for a disorderly breakup in Laughable Eurozone Banking "Non-Union".

Merkel's first parliamentary speech of her third term adds credence to the disorderly breakup thesis.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com