#Poverty for the employed Spaniard #Eurogrope’s rape of Greece #Austria doomed

New data in Spain show that a growing number of the employed are now below the EU defined poverty level. But as the EU and its eurogrope caused that situation in the first place, no doubt the defiition of poverty will soon be revised downwards. All very Blairite: no wonder Moral Tone wanted to be EU President. Things must be bad there, because even the New York Times has caught up with it.

In Britain, The Independent is in turn finally working out that if the EU’s sole remaining advantage is that it allegedly stops wars, fairly soon this may not apply to civil war in Greece. A good piece there yesterday spells it out for the readership:

‘We all know the spiralling debt cannot and will not be repaid. We all know the austerity to which it is tied will make Greece’s depression worse. Yet it continues. If we look deeper, however, we find that Europe is not led by the terminally confused. By taking those leaders at their word, we’re missing what’s really going on in Europe. In a nutshell, Greece is up for sale, and its workers, farmers and small businesses will have to be cleared out of the way.’

It’s as yet unclear when this awareness of the Neoliberal Behemoth formerly known as the EEC will filter into the inner sanctum of the Labour Party: we can only hope that it’s hermetic seal may be loosened as and when the Labour Out campaign gets going. Or perhaps the right word is ‘if’.

And finally, Frances Coppola keeps up the good work by producing yet another crackerjack insight on the developing (some would say unravelling) Austria situation, wherein a Higher Court has ruled that the planned Heta bank failure bailin is illegal:

‘The implications of a decision to repeal the Heta bail-in provisions in BaSAG would be huge….If all the guarantees are reinstated, the Austrian government faces heavy losses, both on its own holdings of HAA unsecured debt and also through its ultimate liability for the Carinthia guarantees – which under the Austrian constitution it is unlikely to be able to evade. Given the scale of the deficiency guarantees, bailing out Heta at a cost of about 8bn euros may turn out to be the cheaper option.

But the consequences for Austria’s fiscal finances are potentially serious. According to Eurostat, at the end of 2014 Austria had a budget deficit of 7.9bn euros, or about 2.4% of GDP. Bailing out Heta would add another 8bn euros. Austria’s annual GDP in 2014 was just under 330 bn euros. So a Heta bailout would leave Austria with a budget deficit of the order of 5% of GDP, well above the Maastricht limits.’

What now, Wolfie….Anschluss II?

None of the above was brought to you by the Labour Out Campaign, UKip, or Conservative Eurosceptics

Connected at The Slog: When Berlin came close to asking UK to bail out the IMF

20 thoughts on “REASONS 11, 12, & 13 FOR BREXIT….FFS BRITAIN, WAKE UP

  1. With the collapse in the Chinese economic miracle and the price of oil, copper, and iron ore, Northern Hemisphere democracies have an opportunity to ditch QE, raise interest rates and restore the economic return of savers, and at the same time prick the asset price bubbles..Governments, who are the major borrowers, would be FORCED to return to balanced budgets, by slashing the alphabet soup of welfare entitlements. Free market house prices would adjust ( my euphemism for down 30 percent) thus enabling housing purchase to be possible for people without the Bank of Mum And Dad. In the UK, we have, apparently, an independent Bank. Anyone think Carney can see through the fog?


  2. Balanced budgets is how a housewife runs a kitchen, It is not how to run a country. A sovereign state can finance its own industry by investing in productive work ,creating employment and wealth. The resulting corporate and income taxes willl cancel out this investment. Money is a tool, if used correctly by a Govt and issued debt free.
    Capital is a country’s resources and raw material. This includes the ingenuity and labour of its people.
    We need QE for industrial development.
    The Financial system was awarded £385 billion , which has not trickled down or created any real employment,It can be considered as welfare for banks.
    Unfortunately,successive Govt’s, who are largely economically illiterate, have ceded control of the creation of money to the private banking sector, who prefer quick returns in the City Casino. Therein lies the roots of our economic and financial crisis.


  3. Excellent post – spot on. And new legislation means you and I are on the hook for the next bail ins without a f*cking firewall in sight of any significance. In the States even the watered down Volcker Dodd Frank efforts are being strenuously fought by the casino bankers. I leave enough money in my accounts to pay the monthly bills; no more.


  4. Austria has form on legal challenges. They’re currently trying to halt the building of the Hinkley nookolar power station.


  5. “A sovereign state can finance its own industry by investing in productive work ,creating employment and wealth. The resulting corporate and income taxes willl cancel out this investment.”

    If the sovereign state correctly accounts for the initial investment and ensures taxes are set at the applicable rate, this is true. Problems ensue when politicians make expensive promises and then fail to fund them correctly.
    In essence, a balanced government budget is one where all taxes are matched to spending – e.g. road taxes are sufficient to maintain the road network, or fuel taxes are sufficient to maintain the required infrastructure and pollution costs, or NI payments are sufficient to maintain the whole of the welfare support system (in which I include healthcare and education).
    But humans being humans, we want the pretty toys but don’t want to pay for them. Excessive government debt is a clear indication that we have foisted the costs onto future generations instead of paying our own way.

    “Capital is a country’s resources and raw material.”
    Yes – shame so many of them are getting scarcer and more expensive to produce. The recent drop in market prices, due to global corrections as a result of the China slowdown, has the potential to drive some producers out of business – when the stockpiles are used up expect to see massive price increases as the remaining producers try to recoup their losses.

    “This includes the ingenuity and labour of its people.”
    No – these are not capital stocks. What value labour if there are no resources to produce? Can ingenuity alone provide fresh drinking water if all the aquifers have been polluted? Can inventiveness by itself solve starvation if all the crops have failed?

    The control of money creation (in the UK at least) was ceded to banks around 300 years ago, when the first Bank of England was established. It had to be bailed out a few times thereafter, but at the time was seen as a better way than letting the King or the nobility stay in charge of money creation. Even then the BoE would have failed were it not for, at least in part, Newton’s currency reforms during his time in charge of the Mint.
    The problem is not the banks, or the politicians – it’s the humans. We are just very, very crap at regulating ourselves.


  6. bring back the bradbury pound separate the high st banks from the casino banks and if the casinos get in a spot of bother let them sink job done


  7. @ Rowan,
    You missed the point, Wealth is created when there is investment in Productive Industry, NOT Iin subsidising roads ,and other non prductive schemes. H2S rail system is a perfect example of how to waste money and line the pockets of the City, with no benefit to the citizens.
    You are obviously not an Engineer .Clean drinking water can be produced from even sewage,using Reverse Osmosis, Flash Evaporation,Vacuum distillation and Vapor compression.Take your pick . All thanks to the ingenuity of man.
    That ability and engineering is real wealth and a benefit to the people. Fiat money is paper ,not wealth.


  8. I wonder what happened to the idea of a bale-in? In Greece it would mean that the super-rich would pay, and that would never do…In Austria it would likely not be enough and anyway Austria’s longing for Anschluss might create a far-right reaction there. I wonder how viable the whole bale-in idea is in practice?


  9. @Salford lad : ‘understood that ! Way to way to go.
    I’m thinking, when they start closing down selected sights …. It will be because more folk are “catching on.
    The confusion being allowed at our borders …. I think is part of a ‘policy of confusion’ and mind numbing.
    They have moved on from little tales of cats stuck up poles, as short memory mind flushing psycho trick!


  10. Perhaps; the only way to defeat the E.U. is to vote to stay within and thereby ensure it’s collapse under the weight of it’s own absurdity.


  11. Bailin out a bank is not the cheapest long term option if being able to expand the current failed economic mechanism further is all it allows.
    The bailin only prevents the immediate ccllapse of the failed system that serves elites so well.
    From that position it should be logical to decide that all bailins to preserve banks and bailins should halt! Why?

    Unable to correct the economic mechanism accounting for drastically reduced work hours, over population, parisitcal capitalist behaviour on those unable to defend themselves does not allow humanity to evolve a mechanism where chances are you may never have a proper job.

    As a sidenote …

    I can see why the Tories are tryng to destroy the current employment laws now, by doing so they can revolve those in and then out of work faster and with an extended time for claiming benefits once in work being dumped (THIS I HAVE SEEN) allows the number of people considered to be unemployed to be substantially lower.

    A SNEAKY TRICK BY THE NASTY PARTY but all to support in conjunction with bailins an economic system that needs to evolve.


  12. @Salford – and you miss my point.
    How do you produce clean water when you only have the sewage to work with? No other resources, not even energy, as your human labour is dying of dehydration. My point may be extreme, but it is meant to show that Ingenuity is not a capital resource, it is perhaps better described as a catalyst or enzyme, i.e. useless without resources to work upon.

    Roads are not non-productive – the economy would not be as big as it is without them – but they suffer from the law of diminishing returns, just like most other things. More and more is not always better and better – your example of H2S is a perfect example of diminishing returns; moving vulnerable coastal roads and railways away from rising sea levels is far more important but less glitzy than shaving 20 minutes off the London to Birmingham route.

    The ability and ingenuity to engineer things is what has got humanity into the predicament it currently finds itself in….


  13. so now we have it. Duetchland uber alles teams up with capitalist greed and we have the Champaign socialists as cheerleaders for the process. What a strange world we inhabit!!


  14. Again, spot on SL. Rowan is a people hating Malthusian, a Paul Ehrlich depopulation fan. These types ALWAYS discount human ingenuity & enterprise. Economist Julian Simon disproved the false “economist” Ehrlich on the so called problem of resource depletion in a $10,000 bet in the 80s, I think. Doomsday Ehrlich has never got a prediction right his entire career, yet he remains a firm favourite with the US eugenicist establishment, along with his pal John Holdren, Obarmy’s Science Czar & co-author with Ehrlich of the depopulation eugenicist manual based on pseudoscience in Jan 1978: Ecoscience.
    For reviews of this filthy Fascist tome:


  15. And just think, the French will turn you out and you might have to pay extra for your good health care not to mention all that good French wine.


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