EU, Iran agree to create ‘special vehicle’ to maintain trade

Iran has said it will not accept any attempts to halt country’s oil exports (Reuters)

 

To keep nuclear deal intact, EU establishes legal mechanism to keep trade with Iran, including in oil

The remaining parties to the Iran nuclear deal said on Monday that they agreed to continue work to create a special mechanism to maintain trade with Iran, including in oil, following the US withdrawal from the 2015 pact.

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Global CFOs: U.S. has world’s only improving economy

 

The United States is the only major economy in the world to get an “improving” score in the latest CNBC survey of corporate executives.

The latest quarterly score marks the fifth quarter in a row that the economy under President Donald Trump has been viewed as “improving” in the CNBC Global CFO Council survey. Continue reading

Iran’s Supreme Leader Calls Attack On Parade A “US Plot”; Tehran Summons Western Ambassadors

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Iran’s top cleric and leader Ayatollah Khamenei has pointed the finger at the West for a terror attack on a military parade that took place early Saturday in the Southwest city of Ahvaz, which left 25 people dead and over 60 wounded.

Khamenei’s condemnation of “plots hatched by US stooges in the region” came simultaneous to Iran summoning the diplomatic envoys of Western countries including the Netherlands, Denmark and Great Britain, for harboring Iranian opposition groups in their countriesContinue reading

BIS warns global economy risks crisis ‘relapse’

© AFP/File | BIS chief economist said central banks around the world had been administering “powerful medicine” to counter the effects of the 2008 crisis, with “unusually and persistently low interest rates,” which came with some “inevitable” side effects

 

ZURICH (AFP) – The Bank of International Settlements said Sunday the global economy risked a “relapse” of the crisis that rocked it a decade ago, warning there was little “medicine” left to treat the patient a second time.

“Things look rather fragile,” BIS chief economist Claudio Borio told reporters in a conference call.

“There is little left in the medicine chest to nurse the patient back to health or care for him in case of a relapse,” he warned. Continue reading

Germany Blinks First In Ongoing European Gas War

Nord Stream 2

 

The U.S. is increasingly finding itself at odds against not only Beijing as Trump executes a sledge hammer approach to ongoing trade disputes with China, but also with Moscow, a potentially more lethal and unpredictable opponent both geopolitically and on the energy front.

Much of Washington’s angst with Russia includes the country’s annexation of Crimea in 2014, it’s meddling in recent U.S. elections, being on opposing sides in the ongoing Syrian Civil War and having differing views over energy security for Europe.

Russia, for its part, with its long-entrenched hold on European gas markets, seeks to solidify its grasp by keeping its gas monopoly largely unchallenged and also by pushing through with Russian energy giant Gazprom’s controversial Nord Stream II gas pipeline project. Continue reading

All Euros Gravitate To Germany

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The Euro has been around for almost 20 years. The Russian transfer ruble survived 25 years. As GEFIRA explains, the two currencies have something in common: they were and are not a success story…

The introduction of the transfer ruble was intended to enable free trade between the countries of the Eastern bloc. The creation of the common clearing system led to the exchange rates for the East German mark, zloty, forint, lev, and even the Mongolian tugrik being arbitrarily fixed by the Soviet Union, regardless of the purchasing power of the national currencies. In the 1960s, the Bulgarian lev was 20% undervalued and the Polish zloty about 45% overvalued. Since the transfer ruble was not yet convertible into Western currencies, it remained an illusion and a means by which the Soviet Union could enrich itself and save its budget at the expense of its satellite states: the Russians bought raw materials, goods, food for convertible currencies in the West and sold them to their “socialist friends” for transfer rubels. The international bank for economic cooperation, which sat in Moscow and handled all transactions in the transfer ruble, swept the real trade surpluses and deficits under the carpet. With the political change the common settlement currency came to to an end, and it turned out that the Soviet Union owed huge sums to its “brothers”. Continue reading

Iran Sanctions Are Damaging The Dollar

Iran

 

Painful sanctions on Iran have demonstrated the long reach of the U.S. Treasury, forcing much of the globe to fall in line and cut oil imports from Iran despite widespread disagreement over the policy. Yet, we are only in the first few chapters of what may ultimately be a long story that ends with the erosion of the power of the U.S. dollar.

The role of the greenback in the international financial system is the reason why the U.S. can prevent much of the world from buying oil from Iran. Oil is traded in dollars, and so much of international commerce is based in dollars. In fact, as much as 88 percent of all foreign exchange trades involve the greenback. Continue reading

A New Move Toward a European Army

 

Also, the Catholic child abuse scandal hits Germany.

European Commission President Jean Claude Junker gave his annual state of the union address on Wednesday. “If Europe were to unite all the political, economic and military might of its nations, its role in the world could be strengthened,” he said.

“Whenever Europe speaks as one we can impose our positions on others,” he continued. Continue reading

Merkel Is Meddling In Macedonia’s Referendum

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German Chancellor Angela Merkel arrived to Macedonia on Sept. 8, 2018, three weeks before the referendum for Macedonia’s deal with neighboring Greece to change the country’s name to “North Macedonia” that would facilitate country’s EU and NATO accession.

 

She followed in the footsteps of her Austrian counterpart and the NATO Secretary General who also came to the country to show their support for its government’s proposal to rename it “North Macedonia”. This so-called “compromise name” was agreed to with Greece earlier this summer and would subsequently allow the country to be fast-tracked into the EU and NATO after Athens drops its objections to its membership that were previously made on the supposed basis that Macedonia’s constitutional name implies territorial claims against it. Continue reading

EU wants continental free-trade deal with Africa

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‘There is a huge potential in Africa,’ said EU policy chief Mogherini as she announced a new continent-to-continent trade deal plan (Photo: © European Union , 2018 / Photo: Lukasz Kobus)

 

The European Commission wants a continent-to-continent free trade deal with Africa, shifting relations away from development towards trade.

The proposal is a long-term goal for what it describes as a “new alliance” with the continent amid promises to create up to 10 million Africa-based jobs in the next five years.

Speaking to reporters in Brussels on Friday (14 September), the EU’s foreign policy chief Federica Mogherini said the latest plan is different from all the past announcements on Africa. Continue reading

State of the Union

A German-dominated United States of Europe with its respective European Army is on the rise — out in the open.

The Fourth Reich has landed.

 

BERLIN/BRUSSELS (Own report) – The EU must develop the capacity “to shape global affairs” and act as “architect of tomorrow’s world,” declared Jean-Claude Juncker, President of the European Commission during his “State of the Union” speech yesterday. The speech is modeled on the famous annual “State of the Union Address” presented by the US President to a joint session of Congress. Juncker particularly wants to accelerate the EU’s militarization and the fortification of its external borders. While the German-dominated Union is striving to become a global power, at all costs, tensions within the EU are growing significantly. The disciplinary action adopted yesterday by the European Parliament against Hungary, which has been undermining democratic rights for years, exacerbates the conflict between the West European centers of power and the EU’s eastern members. The blatant prosperity gap between the EU’s center and the impoverished periphery continues unabated. Serious violations of human rights, particularly against refugees, accompany the internally disunited Union’s striving for a global role.

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Juncker: End internal borders, scrap national vetoes on tax & foreign policy

 

Jean Claude Junker when making his ‘State of the Union’ address to the European Parliament has called for internal borders to be “removed” and demanded national vetoes on foreign and tax policy to be scrapped, giving the European Commission more central powers.

He told the EU Parliament: “Where borders have been reinstated, they must be removed. Failure to do so would amount to an unacceptable step back for the Europe of today and tomorrow. Continue reading

Iran Sanctions, Emerging Markets And The End Of Dollar Dominance

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The trade war is a rather strange and bewildering affair if you do not understand the underlying goal behind it. If you think that the goal is to balance the trade deficit and provide a more amicable deal for U.S. producers on the global market, then you are probably finding yourself either confused, or operating on blind faith that the details will work themselves out.

Case in point, the latest reports that the U.S. trade deficit is now on track to hit 10-year highs, after a 7% increase in June. This is the exact opposite of what was supposed to happen when tariffs were initiated. In fact, I recall much talk in alternative media circles claiming that the mere threat of tariffs would frighten foreign exporters into balancing trade on their own. Obviously this has not been the case. Continue reading

Greece’s Bailout May Be Over, but Not Its Economic Woes

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A ripped off Greek national flag flutters in central Athens on July 22, 2015. (Louisa Gouliamaki/AFP/Getty Images)

 

Underlying obstacles to job creation and entrepreneurship remain

After eight years, Greece has finally exited bailout territory, and the European Union is making a strong case that the program was a success.

While Greece may have ended the bailout process, the underlying issues that wrecked its economy in the first place remain largely intact. Continue reading

Germany, seeking independence from US, pushes cyber security research

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German Interior Minister Horst Seehofer talks to journalists after the ARD- Sommerinterview in front of the Reichstag building in Berlin, Germany August 5, 2018. REUTERS/Joachim Herrmann

 

BERLIN: Germany on Wednesday announced a new agency to fund cutting-edge research on cyber security and to end its reliance on digital technologies from the United States, China and other countries.

Interior Minister Horst Seehofer told reporters that Germany needed new tools to become a key player in the field of cybersecurity and shore up European security and independence. Continue reading