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Someone’s on the phone for you, dear……

English: United States President Barack Obama ...

English: United States President Barack Obama and Irish Taoiseach Enda Kenny participate in a bilateral meeting in the Dining Room at Farmleigh, an official Irish state guest house for visiting heads of state and dignitaries in Dublin, Ireland. (Photo credit: Wikipedia)

I am sure that the NSA have good ways of weighing through the rubbish that they glean from  the millions of European and worldwide phones/data and emails that the syphon off into their data banks. At least I hope so. They have a very mixed record at actually stopping terrorist incidents to date, and one fears that they are a bit like old fashion stamp collectors, building up a large collection, without ever posting a letter!

And what damage they are doing ….!

In a world built on alliances and trust, here are these spooks undermining any trust, any sense of camaraderie that they have available to them, by listening into the phone calls of ordinary citizens of Europe and elsewhere, while  it is illegal to do the same to their own citizens! How bad is that for allies???

This is not to mention listening into the calls of the Chancellor of Germany, and saddest of all, possibly even our own Enda Kenny. What a threat to democracy he is likely to be! Not to be outdone, Enda sidestepped this embarrassing faux pas by saying diplomatically, that he just assumed that his phone was tapped, and never said anything of note! What a shock…!!

I might suggest that if he wants to get his message across, he need no longer rely on the diplomatic channels. It would be far better to ring up his wife, or a friend, and discuss his views over the phone. Surely the NSA will pick it up, and provide a hotline to Pennsylvania Avenue!

It really is time the US woke up to the fact that there are other people on this planet, and they need to start treating their allies as equals, or they will indeed end up on their own.

Security is one thing, ignorance is another.

P

On a lighter note – check out below!

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Back to populist politics again.

The spots are begining to show on the Tiger again, as populist politics take a hold once more.

http://paddyshealth.wordpress.com

 

P

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Goldmine discovered in Ireland

Seems like then politicians have all disappeared for the silly summer season. The background work for an European banking agreement has run into difficulties. Expectations have been dulled by the participants, that countries such as Ireland, which was bullied into guaranteeing the rogue banks, will be able to participate. Being the Golden Child of the European recovery, gets Enda Kenny lots of “pats on the back” from our European masters, but the hard dividend is a different matter!

While we wait for our masters to return from Playa del Rey, San Tropez, or Garmish Partenkirken, Paddyspiigs has discovered a Goldmine in Ireland to share :-

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See No Evil

Archduchess Maria Antonia of Austria, the late...

Archduchess Maria Antonia of Austria, the later Queen Marie Antoinette of France (Photo credit: Wikipedia)

Fed up with being hassled by courtiers in Versailles, Marie Antoinette built, safely within the grounds of the palace, a pastoral idyl, a farm called La Hameau de La Reine. Here she lived out a fashionable fantasy of the nobility of that time – to get back in touch with nature, and with simple things. She would dress in peasant clothing, and attend to peasant tasks, including milking the cows. However, this was far from a real farm. It was a tableau vivant. A contrived tapestry. A conjured scene where the real servants spent their time washing and cleaning the farmyard and the cows, so that there was a surgically sterile environment for Marie Antoinette to play out her fantasies. The cows would be walked up and down before she arrived, to clear them out of any bodily substances that would otherwise spoil the pleasures of the Queen, as she sat on her oak milkmaids stool, catching milk in the Manufacture Royale fine porcelain pot.

No doubt Marie Antoinette thought that she was communing with the peasants in one way or another, by doing this; but unfortunately for her, the peasants considered that her sterilised environment was a mockery of their lives, and they hated her even more for it. The addition of a Temple of Love did not help her cause, giving rise to wild rumours of orgies, and other derring-do! Whether or not the queen lost her head in the Hamleau, she certainly lost it on October 16th 1793, at the tender age of 37, ten years after the Hamleau was built.

The first moral of this story is that ten years is a long time in politics. The second moral of the story seems to be that if you have lost touch with the people, the last thing you should do is sanitise their misery!

I was reminded of Marie Antoinette this week when I found that the new aristocracy (in this case represented by the G8, meeting in Lough Erne) will not have to distress themselves looking at the squalor of recessionary buildings in Co. Fermanagh, as they whiz through on their way to the Five Star Resort and Golf Club. Thankfully they will not have to stop for a lamb chop or a rasher in the village of Belcoo, though they might be tempted to do so looking at the wonderous window display. But alas, like the Hamleau de la Reine, the village of Belcoo is a sham. The shop windows are false, the stocked shelves are a mere illusion, the prosperity and bon vivance is a fantasy. Thanks to the Northern Irish Government, the place has been covered in fake sticker-art, to make the village appear as happy as a fake French Hameau in the late 1780’s. The speeding nobility will probably have no more appreciation of the irony, than the ill-fated queen did.

Plus ça change, plus c’est la même chose

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Austerity fallout for Germany

It seems that the horrors of the European Economic collapse are being realised in Germany

Eurovision Song Contest (2)

Eurovision Song Contest (2) (Photo credit: geirarne)

!

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Quo Vadis? Italy at the crossroads

What can be made of Italy? Here is the third biggest economy in the EU, and it is sinking slowly in a sea of debt, neglect and bureaucracy. No other country quite encapsulates the romance of Europe.

Despite its quirky

Map of Italy with EU flag

Map of Italy with EU flag (Photo credit: Wikipedia)

trains, and appalling TV (thanks Silvio), Italy has always had a special place in the European heart. Italy is the capital of style. Italians ooze that elusive ‘something’ that Northern Europeans can recognise but not emulate.  We love the Tuscan landscapes, and the Umbrian hill towns, Capri, Sorrento, and wonderful Rome itself. We crave the sun drenched evenings, and the simple ‘ambulare’. We love the culture, not just the historical stuff of Roman Legions, or operatic heights, but even more so, the frisson of illegality, of Don Corleone, of borderline resistence to authority. We love imagining a spook at every corner, and a Don in every town. The food, the wine, the community… Such an Idyl, such a life!

On top of this Italy has been one of the industrial powerhouses of Europe, and has seen its GDP more than double between 2000 and 2008. Since then the wheels have started to come off. Like many perfect storms there are many elements, and it isn’t just debt in Italy’s case (although debt is a major problem, now 128% of GDP; thats about two and a half trillion euro to you and me). It seems that the Godfathers on every street corner, are neither  elusive nor romantic. Public works and politics are contaminated at every level by some very non-romantic people. The Ndrangheta butchers are spreading their Calabrian style gangsterism throughout Europe. Rubbish chokes the beautiful city of Naples. Judges and police are assassinated. Public contracts are tainted, and public works are corrupted. The black economy thrives.

The political system appears to have ground to a halt. The cumbersome system of electing a Government makes finding a political solution near impossible.  What other country could throw up a choice between a clown and a septegenarean accused of soliciting underage girls a quarter of his age? What other country could allow such a man to monopolise the media, and dictate the political agenda?

The price for all this is human and very real. Unemployment has doubled in the last five years to three million(12%). Youth unemployment rate is over 40%. Some 89% of youths aged 18-24 are relying on their parents. In a sad statement, Prime Minister Letta announced a Government program to reduce Yourth Unemployment to 30%, and suggested that this was progress. Italian industrial production is down 25% as austerity and debt takes hold. Even the (reverse) takeover of Chrysler by Fiat, seems to be a retreat from Italy by the car giant. Though this would have a far more symbolic than real effect, the optics are terrible.

While Italy is a member of the “PIIGS”, it does not really belong. It is  a founder member of the E.U.. It is in the G8. It is a military-industrial giant. It is synonymous for most of us cold-fish, with being the essence of Europe. If it fails, it is not a Cyprus, Ireland, Portugal or Slovenia. If it fails, so does the concept of European Economic Unity.

English: Portrait of Giacomo Puccini

English: Portrait of Giacomo Puccini (Photo credit: Wikipedia)

WIll Italy muddle through? There is a real tragedy worthy of Puccini at play here. Those of us who love Italy for its romance and charm will be hoping that the heroine doesn’t succumb in the last Act!. Those who care for Europe should be equally concerned.

 

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Save the Patient

English: Constituency for the European Parliam...

English: Constituency for the European Parliament election in 2009 Español: Mapa por el Elecciones al Parlamento Europeo de 2009 Français : Circonscriptions aux élections européennes en 2009 (Photo credit: Wikipedia)

Many austerocrats ask, what are the alternatives to austerity? Certainly the entire Irish government is in this camp, as are the Governments of much of the EU. They seek council from Wolfgang Schauble and Olli Renn. The mantras of shame and moral decline are rattled out, and the twenty million young people who are thrown aside  are ignored. The baby is going out with the bathwater.

Well I have some suggestions that won’t sit well with our masters, but here they are

Issue Eurobonds

This has been well described by George Soros.

Print Money

If the Germans are so worried about this, give a lot of it to the Germans, as long as they spend it on holidays in the recessionary countries.

Spend the rest of money you print however you like, provided that you are creating proper jobs. We need to save the young.

Allow modest inflation

Inflation of say 3% would ease the debt burden over time, and encourage people to invest their money.

We are not just talking about the economy here we are talking about the Union itself. If we cannot have a unified approach to these problems then we should seriously consider an early dissolution, before things get worse.

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Simple Choices

Helmut Kohl - Chancellor of Germany (1982–1998...

Helmut Kohl – Chancellor of Germany (1982–1998) and architect of German Reunification – M.A. 1956; Ph.D. 1958 (Photo credit: Wikipedia)

Well Oscar Lafontaine is talking the talk again. Having brought Europe together in one if the greatest social experiments in modern history, he is now set on dismantling the euro, in what would be an equally brave experiment. Hopefully he won’t turn around in 15 years time and want to reverse again. Isn’t it great to have leaders with such flitting vision!

Germany has been a big winner in Europe and will continue to be going forward, for a host of political, social and economic reasons. It is true to say that Germans have managed their affairs prudently, and have not over-borrowed, like many of their EU partners. However, Germany has not been a passive spectator in the entire fiasco that has unfolded. It was the chief designer of the Euro and it impressed on the EU/ECB a standard of rigorous inflation control, that was ill suited to the peripheral countries. German investors were happy to invest in the periphery when the gains to be made exceeded the more modest gains in their homeland. Germany was at the forefront of insisting that Ireland not “burn the bondholders” in the appalling Anglo Irish Bank scandal, – an insistence that has done more to destroy the Irish state than any other single issue in the current crisis.

Germany also gains substantially from the current low inflation, recessionary environment, which sees capital flows into German bonds, and German Funds. Germany as a major production driver of the EU gains more than most by the tariff-free environment that it can sell its goods and services into.

By contrast, if Mr Lafontaine gets his (new) way, and the Euro breaks up, the German exports are likely to be the first casualty, as the peripheral markets are lost to the stronger Deutschmark. So no one escapes. We all sink or swim together.

In some ways the breakup of the Euro, will be the answer to the problems of the periphery. The peripheral countries will be allowed to devalue, and a certain amount of relaxed inflation targets, will help deal with the debt problems. Debt will be nominalised in the new devalued currencies as there will be no Euro as standard. This alone will do what Governments failed to do when the crisis hit. The periphery will have hopefully learned the lessons of the last few years in respect to fiscal control.

The subtitle of this blog “The Living History of the Breakup of Europe”, is more of an observational title than an aspirational one.  We need to get some straight thinking if Europe is to stay together, or indeed even if its not. What we are going through is a transformational change that will either make us stronger or our continent will succumb to partisan nationalism again.

There are only two ways to proceed, and those are integration or dissolution.

If we are to proceed along the integrationist strategy then we need to deal with all the sovereign debt and deficit funding in the system. This cannot be done with pure austerity, which is an attack on the viability of nations, but rather with a program of development akin to the Marshall Plan

First page of the Marshall Plan

First page of the Marshall Plan (Photo credit: Wikipedia)

, which provided vision beyond the pure economics, or even the unification program for Germany, which did likewise.

If Europe is to integrate then it should do just that. To see the issue as purely economic and fiscal will ensure the breakup of Europe. There is no leader in Germany the equivalent of Helmut Kohl, who was prepared, on both Europe and on German unification, to grasp the hand that history had dealt him, and play it with vision. The only vision we see now is accountancy, and the longer this visionary stupor persists, the more the spectre of nationalism will rise and the more inevitable will be the break up of Europe.

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That Man Again – MICHAEL D HIGGINS Speaks out again

English: Herman Van Rompuy, President of the E...

English: Herman Van Rompuy, President of the European Council, at the press conference about the European Union during the 37th G8 summit in Deauville, France. (Photo credit: Wikipedia)

Michael D. Higgins: An Auld President.

Michael D. Higgins: An Auld President. (Photo credit: David Conch Condon)

TWO PRESIDENTS IN ONE DAY

– SOMETHING MUST BE HAPPENING!

The President of Ireland, Michael D Higgins, has done it again. He has broken the stodgy Presidential Protocols and expanded on his previously reported speech to the European Parliament in an interview he gave to the Financial Times, which has also complimented him in a very supportive Editorial.

“There is a real problem in what was assumed to be a single hegemonic model… The unemployment profile in Greece is different from the unemployment profile in Ireland. You need a pluralism of approaches… We have 26m people unemployed… There are 112m at risk of poverty, a contraction in investment and falling demand.”

Herman Van Rompuy , President of the European Union, has  also spoken out today, calling for fiscal stimulus, and inferring the great unmentionable (that anyone with two Betz cells knows now to be the truth), that this

Austerity Isn’t Working.

How many people have to hear this? The Future that the austeritocrats are playing with is yours, and they’re just not listening. I do not oppose austerity because I feel people shouldn’t pay back their debts. I oppose it for the exact opposite reason. I oppose it because the only way anyone will be able to pay back anything is if there is a viable economy, and we can’t have that if we are destroying the economy day-in and day-out, by everything Governments are doing. We have had five years of this now, and it is getting worse and worse. This is not the Europe that was ever envisaged by the founding fathers. It is time to call a halt. It is so heartening to hear reasonable men stand up, for a change.

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