Central Perk

sâmbătă, 24 noiembrie 2012

Mish's Global Economic Trend Analysis

Parallel Universe; Pin the Tail on the Scapegoat; Losing by Winning

Posted: 24 Nov 2012 09:35 AM PST

A curious thing happened in the complete collapse of the EU budget negotiations. Actually several curious things happened.

UK Prime minister David Cameron was not the scapegoat.
Supposedly multi-national bickering was a good thing (when heading into the summit it wasn't)
German Chancellor Angela Merkel offered ridiculous platitudes as to what the breakdown means

Pin the Tail on the Scapegoat

Please consider Blame flies over budget 'bazaar'.

It took Europe's leaders two days to discover they could not agree on a €1tn budget but less than half an hour before the blame game started over who was responsible for the latest grinding episode of euro-stasis.

David Cameron accused José Manuel Barroso, European Commission president, for "insulting the European taxpayer" by failing to offer a single euro of cuts to the proposed €63bn budget for running the EU bureaucracy.

Some diplomats blamed Angela Merkel, German chancellor, and François Hollande, French president, for failing to patch up their strained relations to provide a lead in seeking a solution. Others said Herman Van Rompuy, the EU president and chief negotiator, showed a lack of urgency and imagination in the way he conducted the talks.

But perhaps the most surprising element in the post-mortem was how little blame was attached to David Cameron, Britain's prime minister, whose promise to defend his country's rebate and call for steep cuts had caused alarm in Brussels.

Europe's leaders seemed determined to present Mr Cameron as a constructive partner in the negotiations – rather than the isolated, veto-wielding eurosceptic portrayed by many European newspapers this week.

After his isolation at a summit in Brussels last year over a new fiscal pact, Mr Cameron wants to get back into the fold as he tries to win friends for future fights on issues such as a proposed banking union and a possible renegotiation of Britain's EU relationship. But his decision to hold out for a better budget deal will be welcomed by Tory MPs at Westminster, as will his hard-hitting attack on Mr Barroso, whom he accused of living in "a parallel universe" in refusing to countenance cuts to the EU civil service.

Merkel's Platitudes

The Financial Times discusses Merkel the Conciliator.

Ms Merkel came to the summit in Brussels insisting that it would not be "the end of the world" if there were no agreement. She left on the same note, perfectly relaxed, insisting that everyone had made substantial progress. They had got a good basis for a final agreement early next year, and no one had been isolated, she said.

There was a sense of palpable relief in the German delegation that David Cameron, UK prime minister, had not been tempted to wield his veto.

"It is not a question of a single country," she said after the meeting was halted. "We agreed that only if we decide unanimously can we agree on a reliable financial basis."

The worst possible outcome, she declared, would have been to struggle to reach a deal on the seven-year financial framework, and to fail.

The alternative – of running the EU on annual budgets based on the existing allocation of spending – "would very much weaken the growth prospects in Europe". It would particularly hurt the prospects of the new member states in central and eastern Europe, who under the seven-year plan will get a greater share of spending.

What a Crock

Merkel is allegedly breathing a sigh of relief because more than one country objected to Barroso's budget?

Supposedly we are to believe that 24 agreements out of 28 possible is better than 27 agreements out of 28. Please be serious.

I am also laughing at Merkel's platitudes "The worst possible outcome, she declared, would have been to struggle to reach a deal on the seven-year financial framework, and to fail."

Apparently it is better to throw in the towel and quit rather than try, because that is exactly what she said.

Losing by Winning

Cameron raised the EU's bluff and Merkel promptly folded.

The problem is the UK would be far better off by having a straight up or down vote on the EU by British citizens (which I am sure would be rejected), and sadly that outcome was avoided.

Instead, Cameron has decided to wimp along instead of doing what needs to be done: having a national referendum on UK membership in the EU.

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

Most Expensive Celebrity Divorces

Posted: 23 Nov 2012 10:50 PM PST

A look at some of the biggest divorce settlements that famous spouses had to pay.

Dr. Seuss House in Alaska

Posted: 23 Nov 2012 10:12 PM PST

Dr. Seuss House is located in Willow, Alaska, in the United States. The "Dr. Seuss" house has about 12 stories, it was built and left unfinished for the almost 10 years, and just recently (2012) was finished. The house was dubbed with the name "Dr. Seuss" house by the local people of Willow, and as you can see on the photos below, it makes perfect sense. For more information about Willow visit Wikipedia - Willow, Alaska.

The House in the Middle of a Motorway

Posted: 23 Nov 2012 09:58 PM PST

AN ELDERLY Chinese couple refused to leave their home after local officials ordered it demolished for a new highway, claiming the compensation would not be enough for them to rebuild. Now the building stands in the middle of the road and the car drivers have to drive around it.

Via: news

A Green Tree for a Blue Room

Your Daily Snapshot for
Saturday, November 24, 2012

A Green Tree for a Blue Room

Yesterday, the First Family received the official White House Christmas Tree, which arrived via horse-drawn carriage. Daughters Sasha and Malia, and First Dog Bo, also helped welcome the tree. The tree, a 19-foot Fraser Fir from Jefferson, N.C., will be displayed in the Blue Room of the White House this holiday season.

First Lady Michelle Obama, with daughters Sasha and Malia, and the family dog Bo, receives the official White House Christmas tree at the North Portico of the White House, Nov. 23, 2012. The tree, a 19-foot Fraser Fir from Jefferson, N.C., arrived in a horse-drawn carriage. (Official White House Photo by Chuck Kennedy)