Schäuble Warns of Coming Economic Crisis

 

In his farewell interview for the Financial Times, Federal Minister of Finance Wolfgang Schäuble warned of a new global financial crisis predicated upon the Quantity of Money theory that the central banks had pumped trillions of dollars into the financial system that is creating a risk of “new bubbles”.  Indeed, many just do not comprehend what is going on and are blaming the new highs in share markets on concerns about the increased risks from the accumulation of more and more liquidity and the growth of public and private debt. Continue reading

Dutch Central Bank Warns Of Market Calm Before The Storm

 

With one foot out of the door of Germany’s finance ministry, the former head of the German economy, Wolfgang Schäuble, 75, delivered a fire and brimstone warning over the weekend, telling the FT in an interview that there was a danger of “new bubbles” forming due to the trillions of dollars that central banks have pumped into markets. Schäuble also warned of risks to stability in the eurozone, particularly those posed by bank balance sheets burdened by the post-crisis legacy of non-performing loans, something we warned about since 2012, and an issue which remains largely unresolved.

Taking a broad swipe at the current financial regime – which he helped design – Schauble warned that the world was in danger of “encouraging new bubbles to form”. Continue reading

The Economy of Secession (II)

BERLIN/BARCELONA/MILAN/ANTWERP (Own report) – As can be seen in an analysis of the separatist movements in Catalonia, Lombardy and Flanders, the deliberate promotion of exclusive cooperation between German companies and prosperous areas in countries with impoverished regions has systematically facilitated the autonomist-secessionist movements in Western Europe. According to this study, Flanders, as well as Lombardy – two already economically prosperous regions – have been able to widen the gap between themselves and the impoverished regions of Belgium and Italy, also because they have played an important role in the expansion of the German economy, the strongest in the EU. Through an exclusive cooperation with the state Baden Württemberg, Catalonia and Lombardy have been able to expand their economic lead over more impoverished regions of Spain and Italy, which has spurred their respective regional elites to seek to halt their financial contributions for federal reallocations through greater autonomy or even secession. The consequences of deliberate cooperation – not with foreign nations – but only with prosperous regions, can be seen with Yugoslavia.

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Austerity and Secession

BERLIN/MADRID (Own report) – The escalating Catalan secessionist conflict is upsetting Spain, a country hard hit by Berlin’s austerity dictate. Spain – occasionally praised in German media as a showcase for an alleged successful austerity policy – is still confronted with enormous social and economic problems, in spite of a modest economic growth. Unemployment and poverty remain at high levels. Crisis policies over the past few years have also increased the economic gap between Spain and the euro zone’s centers of prosperity. One still cannot speak of debt reduction – the official objective of Germany’s austerity policy within the EU. The poor economic situation, the high debt burden level and the distribution of federal and regional debts are fueling Catalonia’s secessionist conflict.

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In Historic Speech, Macron Makes “Radical” Appeal For United Europe, Calls For “Military Intervention Force”

The construction of the United States of Europe and its European Army is still in full motion with Germany’s Fourth Reich at the helm and France toeing the line. This is barely beginning to be noticed by a few people but has been discussed and tracked on Global Geopolitics since 2011.

 

 

Just two days after the Alternative for Germany (AfD) party won a larger-than-expected 13% of the vote in Germany’s federal elections over the weekend – dealing a staggering defeat to Chancellor Angela Merkel’s Christian Democrat-led coalition which suffered its worst electoral showing since 1949 – French President Emmanuel Macron delivered a lesson in contrasts when he gave what the Financial Times described as the most integrationist speech by a French leader since the creation of the euro.”

Speaking to students at the Sorbonne in Paris, Macron said that “the challenge is vital: the sea walls behind which Europe has thrived have gone,” adding that we need to trace the only path ensuring our future; it is the refoundation of a sovereign, united and democratic Europe.

In other words, a United States of Europe. Continue reading

The Imperial Consensus

BERLIN (Own report) – With the Alternative for Germany (AfD), an extreme right wing party will enter the German Bundestag for the first time since the 1950s. With 13 percent of the vote, the AfD has successfully mobilized an extreme right-wing potential that, according to a sociological study, has always existed within the German population. All parties in the Bundestag openly repudiate the AfD. However, this only obscures the fact that the AfD’s program, particularly on the important issues of foreign and military policy, show remarkable parallels to the political objectives of almost all other parties in the Bundestag. Like the CDU/CSU, FDP, SPD and the Greens, the AfD sees Germany as a global “policy-making power,” whose armed forces should be massively upgraded and made more operational. Whereas, the mainstream parties in the Bundestag are relying on the EU as the instrument for German global policy, the AfD favors a national course for Germany exercising global power. This course would probably take effect should the EU disintegrate due to the growing internal dissentions or if more and more countries opt to exit.

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Juncker calls for united EU under one leader

Juncker wants a single EU president who campaigns in the 2019 elections (Photo: European Commission)

 

European Commission chief Jean-Claude Juncker outlined his post-Brexit vision for a confident EU in his state of the union address on Wednesday (14 September), speaking of a Europe that has bounced back from the economic downturn and regained the political ground from populists and eurosceptics.

Juncker, in his second to last state of the union speech, has argued for a more united and effective EU that is based on freedom, equality and the rule of law, and signalled that he wants all EU countries to become full eurozone and Schengen area members by 2019 – except those with opt-outs. Continue reading

Macron revives multi-speed Europe idea

“We have to think up a Europe with several formats,” the French president said. (Photo: consilium.europa.eu)

 

French president Emmanuel Macron has revived the idea of multi-speed Europe, while announcing that he will soon make ten “concrete” proposals to reform the EU after Brexit.

“We have to think up a Europe with several formats, go further with those who want to go forward, without being hindered by states that want – and it is their right – to go not as fast or not as far,” he said on Tuesday (29 August) in a speech to French ambassadors. Continue reading

Russia’s Real Endgame

 

Russia’s Putin has never taken his eye off the ball. His ambition is not global hegemony or European conquest. Putin seeks what Russia has always sought: regional hegemony and a set of buffer states in eastern Europe and central Asia that can add to Russia’s strategic depth.

It is strategic depth — the capacity to suffer massive invasions and still survive due to an ability to retreat to a core position and stretch enemy supply lines — that enabled Russia to defeat both Napoleon and Hitler. Putin also wants the modicum of respect that would normally accompany that geostrategic goal.

Understanding Putin is not much more complicated than that. Continue reading

Germany and France Unveil New Plans for a European Military

German Chancellor Angela Merkel (L) and French President Emmanuel Macron deliver a joint press conference at the Elysee Palace in Paris on July 13, 2017, during an annual Franco-German Summit. (PATRICK KOVARIK/AFP/GETTY IMAGES)

 

The two nations announce plans for a new fighter jet, a new fighting force in Africa, and a new push for a eurozone superstate.

On July 13, Germany and France held their first joint cabinet meeting since France’s presidential election, and the two leading European countries announced some eye-catching new military projects.

This was the first such meeting since Emmanuel Macron won the presidential election on May 7. Since then, there has been much talk of a new era of Franco-German cooperation. On Thursday, the pressure was on to demonstrate results. Continue reading

Europhile Macron admits Germany thrives on weakness of other ‘dysfunctional’ EU economies

Angela Merkel and Emmanuel Macron

Macron said the German economy was competitive because of the weakness of others [GETTY]

 

THE EU is “incomplete” and will struggle to reform unless Germany releases it’s strangle–hold on the euro zone’s economy, Emmanuel Macron has suggested.

The French president claimed the powerful German economy thrived from the “weakness” and dysfunction of others.

Mr Macron said: “I have never reproached Germany for being competitive. But a part of German competitiveness is due to the dysfunctionalities of the euro zone, and the weakness of other economies. Continue reading

Commission lays out vision to complete euro

The EU executive is proposing a two-phase calendar to complete the architecture of the economic and monetary union. (Photo: Hannelore Foerster)

 

The European Commission presented on Wednesday (31 May) its proposal to “move forward” on eurozone integration with a treasury, a finance minister and several instruments to make the financial sector less vulnerable to crises.

The document, which is part of an ongoing reflection about the future of the EU, aims to “fill the gaps” in the single currency and to help the eurozone economies to converge.

“We cannot and should not wait for another crisis,” said commission vice president Valdis Dombrovskis, who admitted that “doubts remain about the full stability and safety of the system”. Continue reading

How to set up a universal basic income for all Europeans

 

Belgian Economist François Denuit suggests introducing the euro-dividend as a new pillar of social rights on which member states could build up their own basic income policies. A big leap forward towards building a truly and ambitious Social Europe.

A month ago, following a public consultation involving more than 16,500 participants drawn from civil society, the European Commission made public its reflection on the social dimension of the European Union (EU) and adopted a recommendation in favour of a “European pillar of social rights”. While we should applaud the willingness of the institution and its president, Jean-Claude Juncker, to re-engage with its right of initiative in social affairs, this proposal must be accompanied by other initiatives if the Commission hopes to meet its aim of a “social triple A” for the EU. A systematic support for national social protection systems in the form of a euro-dividend could offer a complementary and ambitious way to address current social, economic and political issues. Continue reading

EU SUPERSTATE: Brussels ‘to force EVERY member state to adopt euro by 2025’

Eurozone

The EU wants every member state to adopt the Euro by 2025, reports claim [GETTY]

 

BRUSSELS officials want every European Union country to be using the euro by 2025, a bombshell new report has claimed.

Nine of the 28 member state in the EU are currently not part of the single currency.

The UK and Denmark are exempt, but the remaining seven nations all agreed to adopt the euro when they joined the bloc. Continue reading

More EU integration Inevitable: Mercron will be forced to federal EU or eurozone will die

Angela Merkel and Emmanuel Macron

German chancellor Angela Merkel and new French president Emmanuel Macron [GETTY]

 

THE European Union single currency will only survive through even GREATER integrations, analysts have warned.

Eurozone nations will have to find ways of working more closely together despite growing anti-EU sentiment in some countries and the fallout from Brexit.

Analyst Antonio Barroso, managing director at Teneo Intelligence, told CNBC: “I think further integration is inevitable, especially if member states want to make the euro zone sustainable in the long term. Continue reading