A Union of Convenience

Sculpture outside of European
Central Bank Photo:Wikipedia

The European Union started with six Western European countries after World War II as the European Coal and Steel Community in 1952 (Belgium, France, Italy, Germany, Luxembourg, and the Netherlands). By 1973 the United Kingdom, Denmark, and Ireland joined what had become known as the European Community. Greece became a member in 1981, Spain and Portugal in 1986, Austria, Finland, and Sweden in 1995, eight former communist countries in 2004 (the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia) plus Malta and Cyprus, Bulgaria and Romania in 2007, and Croatia in 2013, the 28^th member.

A recent primer on the EU attempts to clarify the dysfunctional union of 28 countries which has not been very successful in promoting “peace, stability, and economic prosperity,” by harmonizing laws and common policies on economic, social, and political issues as envisioned by a hand full of European socialist elitists.

To join the European Union a country must first have a functioning democracy and a market economy. This is interesting since a lot of the former communist countries were in social and economic chaos following the fall of the Iron Curtain in 1989. They were not exactly functioning democracies or supply and demand-based economies; they were former dictatorships with centrally-planned economies, some of which are still struggling with their understanding of what a democracy is.

The EU members share a customs union, a single market in which goods, people, and capital move unimpeded by borders, a common trade policy, and a common agricultural policy as dictated by Brussels. A common currency, the euro, is shared by 19 countries; these nations had to give up their monetary policies, no longer controlling interest rates, the money supply, or their ability to mint and print their own currencies.

The Common Foreign and Security Policy (CFSP) with its Common Security and Defense Policy (CSDP) cooperate with the area of Justice and Home Affairs (JHA) “to forge common internal security measures.” https://www.fas.org/sgp/crs/row/RS2137.pdf

To govern this multi-national behemoth, the EU has established numerous bureaucracies:

-          The European Council (composed of EU heads of state or government and the President of the European Commission; this president is appointed by the member states to facilitate a consensus) – The Council meets several times a year at “EU Summits” in order to set EU policy

-          The European Commission – is the EU’s executive branch composed of 28 commissioners, appointed ty agreement to five- year terms approved by European Parliament; one commissioner is president and the other 27 have specific duties such as trade, agriculture, energy, etc.

-          The Council of the European Union (Council of Ministers) – represents national governments and enacts legislation put forth by the commission; the presidency of the council rotates every six months among its members; the country holding the presidency sets the agenda

-          The European Parliament – elected directly by EU citizens to represent them for five-year terms; it has 751 members who were elected on May 2014; each nation has a number of seats proportional to their country’s population; the Parliament cannot initiate legislation but it can share legislative power with the Council of Ministers in specific areas, accepting, amending, or rejecting proposed EU legislation via “ordinary legislative procedure;” the Parliament allocates the EU budget with the Council Members of the European Parliament caucus (MEPs), not based on nationality, but political affiliation via the eight political groups;  some MEPs are non-affiliated; the pay for these functionaries is quite generous

-          The Court of Justice – ruling on binding laws

-          The Court of Auditors – looks at management of finances

-          The European Central Bank – manages the euro and monetary policy

-          Advisory committees – in charge of regional economic and social issues

 (Kristin Archik, The European Union: Questions and Answers, September 4, 2015)

On economic and social issues, EU member states have given up their national sovereignty because the EU decision-making has been transferred into the hands of a supranational authority. Decisions in foreign policy require “unanimous consensus of all 28 member states.”

Are you still a state if your borders no longer matter?  It became quite painful to watch the smaller countries in Europe, with their open borders, being invaded and trampled by the hordes of so-called “refugees” from Syria, Iraq, Somalia, and Turkey, demanding passage to Germany and Sweden where the welfare systems are more generous.

The Lisbon Treaty, signed and effective since December 2009, attempted to give EU more influence in the foreign policy of each country and to increase “democratic transparency.”

The U.S. has supported the European Union for political reasons of “democracy building” and for trading partnerships. EU and U.S. are pursuing a comprehensive free trade agreement, the Transatlantic Trade and Investment Partnership (T-TIP), not unlike the Trans-Pacific Partnership (TPP). Disputes remain on issues of data protection and climate change.

Some U.S. Congressmen are beginning to pay attention since the European Union has been plagued by the Greek debt crisis, the massive migration from the Middle East and Africa, and “the rise of anti-EU populist political parties.”

The movers and shakers in key bureaucratic EU positions are:

-          Donald Tusk, the former Prime Minister of Poland, is the President of the European Council, appointed for a two and a half year term

-          Jean-Claude Juncker, former Prime Minister of Luxembourg, is President of the European Commission

-          German MEP Martin Schulz is the President of the European Parliament

-          Federica Mogherini of Italy is the High Representative of the Union for Foreign Affairs and Security Policy

EU member countries handle their own fiscal policy but the monetary policy is directed from Brussels for those members that have adopted the euro as their national currency. Denmark and the U.K. have opted out of the euro. Nineteen of the 28 EU countries use the euro which is beneficial in trading and in tourism. http://europa.eu/about-eu/basic-information/money/euro/index_en.htm

After a country becomes an official candidate to the accession to EU, the applicants must adopt EU laws and regulations. Becoming a member of the EU has transformed some European countries into “functioning democracies and more affluent societies” but they did so at the expense of large and successful western economies that have paid for this transformation. Driving across Eastern Europe, it is easy to see the massive construction, modernization, and remodeling projects paid with EU funds and loans. There are six countries currently under consideration to EU membership:  Albania, Macedonia, Montenegro, Serbia, Turkey, and Iceland.

Further read:

CRS Report IN10065, The 2014 European Parliament Elections: Outcomes and Implications, by Kristin Archick.

 

Bailout, Bailins, and the Greeks' Trojan Horse

Istanbul Archeological Museum Trojan Horse (Wikipedia)

While Americans are eagerly signing petitions to ban the American flag on the heels of Louis Farrakhan’s Nation of Islam leader call to ban the Stars and Stripes “due to its links to racism” or are busily banning anything attached in any way to the Confederate flag and our history, the United States and the world are in serious financial trouble driven by out-of-control debt, particularly the most visible nation of all, Greece.

Healthcare for illegals, gay marriage, and other non-stop crises occupy the American overwhelmed minds, while the Trojan Horse of huge national debt and loss of sovereignty to the globalist Transpacific Partnership (TPP) mystery “committee” are ignored.

Greece is bringing to the forefront the issue of debt, what happens when it spends 60 percent of GDP, lives from borrowed billions, and refuses to curtail spending on entitlements, expecting more bailouts from the EU, essentially Germany.

Banks and the stock exchange are closed for the week, issuing a 60 euros limit per withdrawal. Not unexpectedly the euro fell against the dollar and the British pound. Sky News reported Prime Minister Tsipras as blaming the European partners and the European Central Bank for the debacle because creditors “have refused a request to extend Greece’s international bailout beyond Tuesday, until after the referendum.” The move risks a Greek default on 1.5 billion euros payment to the International Monetary Fund.

Tsipras claims that the bank deposits of the Greek people are fully secure and the payments of wages and pensions are guaranteed. I am not so sure that is the case since Greece is carrying a government debt load of over 175 percent of its GDP.  Countries cannot service such level of debt without printing money. http://www.tradingeconomics.com/greece/government-debt-to-gdp

The European Central Bank will maintain its “emergency cash lifeline to Greece’s banks” without an increase. The Emergency Liquidity Assistance (ELA) on which Greek banks depend, if lowered, may force the country out of the Eurozone.

There were many economists, of course, who questioned the wisdom of accepting Portugal, Italy, Greece, and Spain into the EU because their monetary policies were plagued by high inflation. Others believe that a return to the drachma may not be such a bad idea.

Expecting the worse after banks announced closings, Greeks stood in long lines to withdraw cash from ATMs and many horded gasoline and food. After five years of various bailouts, demonstrations, protests, refusals to adopt more austerity measures, negotiations between the leftist government of Prime Minister Alexis Tsipras and Brussels creditors have broken down. For months economists have predicted Greece’s pull out from the Eurozone.

In preparation for the national referendum on July 5, police patrols are more visible especially around ATMs. Tsipras asked voters for a “yes” or “no” vote on the bailout proposal considered by his government as confiscatory. The plan would “raise taxes and hurt pensioners,” forcing Greeks to “an endless cycle of austerity.” But the Greeks have been told few details of the deal – nobody really knows the implications of a “yes” vote or a “no” vote and everyone fears they “would become Venezuela.”

But the well-off Greeks, fearing the election of the leftist Syriza, have already moved money out of Greece or took cash out and stored it elsewhere.

The Tsipras government favors a “no” response to the referendum because the bailouts terms are “humiliating” and would deepen Greece’s economic recession. But without bailouts, “most Greek banks would have totally collapsed by now.” http://www.dailymail.co.uk/article-3141480/Hundreds-queue-outside-banks-fears-Grexit-grow-ahead-MPs-vote-bailout-referendum.html

It has been reported that withdrawals of 500-600 million euros have emptied more than 2,000 ATMs.  When the austerity referendum was announced, people started withdrawing money. When the Greek banks reopen, would they need bail-ins like the Cypriot banks? Would the depositors be forced to accept worthless I.O.U.s for their cash?

The European Union has required its member countries to enact bail-in legislation. Bail-ins force creditors and shareholders to rescue troubled banks. Cyprus citizens holding private bank accounts had to take “haircuts,” a form of wealth confiscation. Private pension funds were raided in Poland. http://www.dcclothesline.com/2013/09/25/cyprus-style-wealth-confiscation-is-now-starting-to-happen-all-over-the-globe/

Bailouts forced taxpayers to financially rescue big banks that had engaged in risky financial activity, using the infamous “too big to fail” excuse.

How much longer can Germany sustain the very shaky European Union? Should they bring back their own currency, the Deutsche Mark? As more large deposits and capital leave Greece when banks reopen, corporate asset controls may emerge. The Greek market may be shocked and defaults of various debt instruments may emerge.

A Romanian friend, Florina, explained the Greek crisis in terms that most people can understand. “I loaned money to a family in a time of financial crisis so that they can survive, and the family did not curtail their spending, they blew the money on unnecessary stuff; now the family is holding a meeting to vote if they are going to pay me back or not. That’s Greece now.”

 

 

"Climate Change" Hypocrites and Their Fossil Fuel Guzzling Jets

Vostok Ice Core Team in Antarctica
Photo: Wikipedia

While the northeast is preparing for Snowmaggedon, 2-3 feet of snow, as if we’ve never had a few feet of snow before, the global warming turned climate change crowd is preparing for the upcoming global climate negotiations in December in Paris.  Pharrell Williams tweeted “Let’s unite a billion voices to take #ClimateAction now” urging climate change awareness from his private jet in which he is pictured sitting alone.   http://twitchy.com/2015/01/22/does-this-private-jet-make-pharrells-carbon-footprint-look-fat-singer-plugs-live-earth-agenda/

A crowd of influential rich people, 40 heads of state, 2,500 business leaders, and former VP Al Gore has gathered in Davos, Switzerland, for the World Economic Forum, Jan. 21-24, 2015, to discuss climate change and “how to make fabric from recycled plastic.” Other topics included the IMF’s forecasting of 3.5% economic growth, European Central Bank’s quantitative easing package, the decline in oil prices, Japan’s monetary easing, and technology. http://www.weforum.org/sessions/summary/global-economic-outlook-5

Co-chaired by Oxfam’s executive director, Winnie Byanyima, the five day conference also highlighted inequality and the need to further spread the wealth, a “larger share of the economic pie,” to the rest of the impoverished world.  Oxfam is calling for “free universal public services by 2020, including education and health” and living wages for people who have no qualifications.

Felipe Calderon, former Mexican President, told USA Today, “Decision-makers meeting in Davos must focus on ways to reduce climate risk while building more efficient, cleaner, and lower-carbon economies.”

Keep in mind that, while the attendees discussed “income inequality,” how the globe’s rich do not pay their “fair share,” and gender inequality keeps women economically repressed, the conference tickets cost $40,000. Who decides what is a “fair share” and how? When is wealth redistribution through taxation and welfare to poor countries enough?

It does not matter that thousands of real scientists and the Vostock ice core samples have debunked the man-made global warming/climate change theory, what rich liberals care about is lining their pockets with more economic activity taxation based on the non-polluting CO2, the gas of life, which they call carbon.

Global warmists know we are not God and we cannot change the climate and climate change existed for millennia. The globe’s climate underwent major ice ages, small ice ages, and warmer periods even in times when humans did not roam the earth.  Solar activity, volcanic activity, and oceanic currents play a significant role in the ever-changing climate.

The prominent liberals in the media and Hollywood sure hate global warming but they love their private jets, yachts, multiple homes, cars, helicopters, and other gas guzzling toys while urging the rest of us to drive tin can, preferably bicycle everywhere, and live in jail cell-sized tiny homes.

No hypocrisy here in needing extra airport space in Switzerland to park the 550 or so extra jets that arrived for the conference in Davos. The military opened up their airport to accommodate them. Only the “climate change” hypocrites flying alone can burn more fossil fuels in a few hours than most of us burn in years and then have the gall to lecture us on protecting the earth.

Environmentalists worried over fossil fuels may be thrilled or disappointed depending on the outcome of the five-year plan, 2017-2022, that may allow drilling in the Atlantic Ocean. The Washington Examiner said that “the president is likely to permit exploration and drilling off the coast of Virginia and possibly the shorelines of North Carolina, South Carolina, and Georgia.” http://www.washingtonexaminer.com/obama-expected-to-allow-drilling-in-atlantic/article/2559140?utm_campaign=Prospect:%20Politics%20Today%20pmi&utm_source=Prospect:%20Politics%20Today%20pmi%20-%2001/25/15&utm_medium=email

The Washington Post announced that President Obama is proposing to block 12 million acres of Arctic refuge from oil and gas drilling by “designating the area of the Arctic National Wildlife Refuge as wilderness, the highest level of federal protection that would ban oil and gas drilling.”

Lisa Murkowski, R-Alaska, new Chairman of the Senate Energy and Natural Resources Committee, said to Interior Secretary Sally Jewell during a phone call, “What’s coming is a stunning attack on our sovereignty and our ability to develop a strong economy that allows us, our children and our grandchildren to thrive.” She continued, “It’s clear this administration does not care about us, and sees us as nothing but a territory. . . . I cannot understand why this administration is willing to negotiate with Iran, but not Alaska. But we will not be run over like this. We will fight back with every resource at our disposal.” http://www.washingtonpost.com/news/energy-environment/wp/2015/01/25/obama-administration-to-propose-new-wilderness-protections-in-arctic-refuge-alaska-republicans-declare-war/

And any Snowmageddon should be worrisome to Americans for a very good reason. EPA’s over-regulations have shut down almost 20 percent of the coal power plants which means that your electricity during severe cold spells could become unstable, unreliable, and a matter of survival. Natural gas can be used instead but the spot prices are expensive and delivery more difficult.

But don’t worry too much about your family’s finances and survivability as long as your carbon foot prints are very small. You’ll look environmentally-smug, unsafe, and duped behind the wheel of a Smart Car or something running on renewables such as solar, wind, or whatever unaffordable form of energy the “climate change” hucksters develop. Meanwhile, the U.S. oil futures have surged following the death of the Saudi King Abdullah.