TWO ALTERNATIVES FOR EURO – SEEN FROM EUROPE: ONE IS A NEW DEFACTO-ALLIANCE

The first alternative is bankruptcy States Collection without foundation, the other can lead to war

‘Who will pay’ (?), the situation in the shortest form in Euroland. We have not concealed anything in regard to this from the euro’s introduction. And we do not fear the Danish Law of Jante. It went, as we previously indicated it would.

The top in France who demanded DM Mark abolished and stopped the originally planned tough Euro to accept the reunification of Germany is now home to have the debt and deficits in France looked after – a strong Euro would have been impossible in Europe because it was bound to be the ruling-remedy of something too different.

The German state-debt amounted to 78.8 percent of gross domestic product (GDP) in 2010, where the arbitrarily chosen politician-made limit in the Maastricht Treaty and further confirmed in the newly agreed EU’s stability – and growth pact is decided the highest 60 percent of GDP.

Without a strong real economy behind the euro it is no surprise that it’s exchange-rate should be down without someone to pay, defending currency speculation or euro as a Petro-Euro. It remains up. Why? New-mercantile currency floating in oil with Europe’s the real economy in stand still, does not seem as possible way to go1). We have not yet reached the deficits and losses on loans to the old Eastern Europe, several countries admitted as EU members. EU member countries thereby plus nation-states alone even in addition has secured quite-out-the-hemp-loan arrangements including housing loans in Eastern Europe with various banks as intermediaries.

Euro and its primary tasks: to assume that the common compulsory money unit should reflect the real economy of Europe and suit this, we have apparently misunderstood. Similar to Spain’s disastrous management of the gold experience in Latin America in 1500s, it seems that the euro at the best neo-mercantilist view via trade settled in euro, for example oil trade from the Middle East for much of the globe should form the generating momentum, causing the necessary change in Europe with more than 20% unemployed and excluded (officially 9% unemployment) and a huge and growing debt, of which it is almost impossible to draw an unambiguous picture anymore. Jean Monnet – one of the ancestors to the EU project – claimed precisely in 1950s that the compulsury single currency would be used to lift a political union in full scale in place. It was the form, not content, that counted, we can note.

If for example one of the Maastricht convergence requirements for example dealing public debt, which must not exceed 60% of GDP, effectively has validity, the consequence would be that the half to two thirds of countries would not meet this requirement by without accepting stabilization crises with IMF’s intervention. This can be extracted from the real information, which escapes from time to time.

Under Mercantilism, which historically ended with the Napoleonic wars, very simple methods were used to acquire wealth. Today it is so conceived that economic stability and development are measured by a price index a debt ratio by a exchange rate or at a different ratio. I.e. when, for example, some quantitative standards are met, so this is a stable currency, stable economy and stable development are secured (with reference to the five completely arbitrary convergence criteria originally included in the Maastricht Treaty). Economcs stability and development include the dynamics of the capital formation, security of the investment process, knowledge and competences acquisition, new technology and high productivity and economic real economic growth in a country, to its leaders can be said to take voters seriously. All this can not be obtained or estimated based on some static concept, a key figure or five for that matter.

France and most other countries was originally opposed to the so-called stability pact that could have ensured that central bank acted as the old German Bundesbank and held the reins completely tight, but from a different starting point than that of today. It was decided at the Dublin Summit in December 1998 to drop Stability Pact and in the years 2002 and 2003 France came out with too large deficits of public finances in relation to the Maastricht rules and Germany just as for the past more than five years.

The battle for who should appoint the president of the ECB was decided in Dublin. It was France. The German Bundesbank was very out of pace with the German political, financial and industrial elite. In contrast, the bank was very popular in the German public opinion. Therefore, the politician former Bundeskanzler Helmut Kohl was very hard pressed between the German and French political Establishment. The French Socialists have built their requirements for euro in the subsequent treaties. Now with Kohl completely gone and the current German Chancellor (in 2011) is even a Centralist. EU has in turn recommended a German as head of IMF (International Monetary Fund). Kohl also had to eat that there could be purely automatic sanctions against a country that has sustained losses.

Now is required (after Amsterdam) 2 / 3 of the weighted votes of the active participating EMU countries to make sanctions when it goes wrong in a country. France had also approved a so-called Stability Council and thus a direct political role led into the monetary policy by that example formulated exchangerate-guidelines for the euro now. It’s quite crazy. France has secured the former French Finance Minister Christine Lagarde as managing director in IMF. If this indicates that France now exert its influence equally in the ECB and in the IMF (President Jean Claude Trichet), it certainly was perhaps an idea to have a check of the French economy. It looks like more inflation have to be expected in the future, but we can say with this any absolute certainty.

Introduction of the pure (economic) stability pact without countries in order their real economies, leads expectedly to real political instability. And can money quantity is not discussed over the entire euro zone, because it must be determined by a tough ECB, then the consequences for certain areas immediately be so insanely hard, that there is political instability. Not only Italy, Spain and Greece are examples where the way has been shown. This is not a proposal for flexible euro money, but a demonstration of the euro’s impossible integration in the EU.

To relieve the pressure, you can introduce that the more strong-going countries must “deliver some means from their public finances or even commit to this in advance”. But the problem is that nobody can or will or should do so to the less well-country, Spain, Italy, Belgium, Greece, Portugal, Poland, and that is exactly what the recent confirmation of the Stability and Growth Pact prescribes. This tightening political steering instruments, and the citizens of individual countries and thereby their politicians cannot agree to this. The next step may in consequence be the function of taxation to be transferred to the EU. This means initially in plain Danish that public expenditures should be managed crown for crown throughout the euro zone from the EU. This is common fiscal policy. Under this assumption the very little extravagant actions must quickly be closed in for, but also many others.

When you were judging by the declining DM and the increasing Italian lire in 1997-1998 market might get the impression that there was talk about a soft manageable euro at its establishment. There was simply unknown, but colossal Italian lire-volume should have ‘a forever defined’ euro exchange rate in July 1998 (so they said). How could this be possible? Since the exchange rate for Euro was reported to public in advance, speculators began to speculate of cource, especially when national currencies drove on for some time.

Already in 1996 one could foresee the consequences if Germany, France and England would take over Italy’s huge debt mountain at a time – it has happened apparently, we wrote back then, but could not know because we did not know debt figures. It would simple has destroyed the euro from the beginning and led ECB to also take care to guarantee the solvency from then onwards for both Italy, Spain, Portugal and Belgium and all the other violent debt burdened participating countries such as Greece, and what else could to be expected to introduced as EU-members in Eastern Europe in general. Therefore it happens now.

With the many new deficit countries inside, there would also be created an alliance with Amsterdam Treaty voting weights, which could put pressure on the ECB and get it to act as though it still has control over the monetary policy without it really does. Reel EMU severity by the book multiplied by three or four is what should be expected now if it is to succeed in creating economic stability in the current situation – without a strong leverage from outside.

Thus loosing the political stability is status quo and it is likely to be, and disappointment of the project will then lead to resistance to the whole euro project. Therefore they still act ‘as if’. The fear of competition inhibits rationality: globalization trivializing means the unrestricted movement of markets, including capital market. This globalization many argue destroy the democratic welfare state and the nation state. It does so only because we have no longer an international monetary system to prevent it. Free movement of capital undermines the ability of states to regulate. Especially in terms of employment. Wage pressure and cuts may intercept what threatens to be lost of jobs, particularly by outsourcing. Global financial markets are not subject to any self-regulatory competition mechanism, and induces crisis to crisis – Asia, Mexico, Russia and country in Latin America – if there is no order in the real economy. Crises will deepen because of the many debt securities, which amplify the difference between the nominal and real values of the nations. And all because you have chosen to supply the measuring tape instead of using the measuring tape to measure.

It gets worse when all the state leaders continue net borrowing more and more. Crises sharpen the social pressure with needed for cuts. The pressure leads either to dissolve the democratic welfare states, to dissolve itself into interconnected defense the blocks (blocks as the currency Euro, Dollar, Yen and Renminbi-zones) or fall back in the old enemy images that characterized the nation in advance or in a combination of both scenarios. With the dissolution of the democratically founded national and social state globalization triggers itself eventually, because it can not stand for their countries’ populations/voters have to carry larger and heavier loads without any security for himself to be covered against the worst.

Euro-Union is the prototype of this development. Its thinly disguised double-motive was a) fear of dollar dominance and competition, and b) fear of the new reunified Germany with the D-Mark-regime.

Anxiety are always based on a false analysis. Non U.S. dollar threatens Europe’s market shares in world trade, but Europe’s lost knowledge-, competence- and technical-terrains and especially Europe’s inertia with reforms and innovations are concerned. Not Deutschmark hardness and strength prevented the development and integration, but from the “Maastricht” the goal was abolition of the Deutschmark, and it has happened. The rationale was that just the Deutschmark should have driven the current euro-participating countries then into a string negative developments aimed at reforms and social limitations. Alone these fallacies and incorrect assumptions permits no realistic expectations a hard euro. Inflation is preprogrammed. Then blow more air in and let it float in the oil first, but the collapse thereby becomes even greater. All participants member-states are deeply indebted and running all at a loss. Already at the euro start the national governments were loosing their management instruments (exchange rates, interest rates, money amount and flexible budget) to ensure monetary values and regulation of labor and the social- and ecological standards which the same politicians had introduced.

Structural and competitive differences will without elasticity from the state be offset by the market. There must be real exchange rates, but definitely not in the euro-design, i.e. with a compulsory common currency, be course it can’t bear the structural differences that characterizes Europe simultaneously.

The main battle is now the labor market, social and ecosystems. The labor market suffers from the middle class is reduced, salary and social competition from workers in the southern EU-poverty zones, and there is an inevitable liquidation of the previously existing (national) unions’ rates and the minimum standards for the social level. The market is sweeping them away, employers rely increasingly on their threat potential in moving production to very favorable (salary, social, tax, eco-cheap) EU-zones and even to Asia. Wage rates, social standards and environmental requirements in Euroland will have to harmonize downwards. Social Democrats, Folksocialists and the trade unions claimed them, but also other people’s naive belief that these things finally could be improved by a signature on the Maastricht treaty. In Euro-Union labor and social policy finally wave goodby – and it happens in full connection to/acceptance of Social Democracy, Folk Socialists, the trade unions and others believers.

March 2007: http://danmark.wordpress.com/2006/05/25/euro-float-in-oil/

Union is suitable as it looks only into submission – Islam means submission

Euro-Union is not a mean towards globalization triggering the employment crisis. There is nothing special about the nature of this ‘globalization’, it newspeake; international competition is the right word. Euro-Union reinforces the power of capital and state powerlessness in the role that could do something about unemployment without having the necessary tools. It is “progress”towards the 19 century (here, an attempt was also the right management tool), not towards the 21 century.

Euro-Union is no counterbalance to the antisocial tendencies of globalization, as incompetent analysts from the left side view, it enhances them further. It obliges to adapt working life to the money economy that take commands. The European Central Bank (ECB) may lead full common-policy for at first 12 since 15 and 16 differently structured countries in the euro zone, without they can take back to the exchange rate as equalization valve. In order to prevent capital from leaving the euro zone, the central bank raise interest rates or simply centralist prohibit the export of capital (as in the Soviet), but this reduces activity and increases unemployment even more. Such a union can only end the states themselves in conflict from which no help is to find – unless it gets extended to a transfer union or a federal state with public financial equalization between the old and new participating countries, something like patchwork U.S. or the German Federal republic, but without the Deutschmark.

Once the transfer of these models in the Euro-Union proves impossible or meets much resistance the question arises: Are there plausible alternative models that can save the peace? As it is now running: Europe and the Arab world has already begun to work together economically in a de facto alliance that it was pre peeped in North-South Dialogue from 1968 and the European-Arab dialogue from mid 1970s. Egypt, Jordan, Morocco and Tunisia decided in 2006 to setting up free trade zone, and Algiers, Lebanon, Mauritania, the Palestinian Authority and Syria were invited to participate in the great free trade zone.

Egypt may be on to becoming an Islamist state, expected to be fully occupied in free trade group. However, the EU has negotiated with all 10 Maghreb countries, part of the so-called Barcelona Process about the cooperation between the EU and its neighbors around the Mediterranean to the south.

The ultimate goal of this Barcelona Process is to establish closer ties by-touching trade and social issues (immigration!) as well as political (islam!). This must after the politician-proclaimed lead to the creation of the Euro-Mediterranean Free Trade The zone of 27 countries. It is possible that European productions in the future must take place in North Africa, Middle East and Eastern Europe, until they have come up, and we have come way down. It is a matter of people here find themselves in it.

February 4 2010: Pressure er mounting across the Atlantic as Greece, Portugal and a handful of struggling countries that use the euro have to two pay-off mountains of debt accumulated from years of profligate spending.

February 13 2010: Axel Weber, president of Germany’s Bundesbank, warned that German economy will contract this year (2010). It did with 1,7%, after 2009 with -5,2%.

The latest: Spain’s Unemployment rate reached 20% in the first quarter (of 2010), doubles the euro zone’s March average. Euro-zone inflation, mean while, rose to the highest rate since December 2008. The official Unemployment Rate!

1) “Ever since the continents started interacting politically well 500 years ago, Eurasia has been the world power center “(opening book” The Great chessboard ” 1997, by Zbigniew Brzezinski). Eurasia is all land east of Germany and Poland, the stretches all the way through Russia and China to the Pacific. It includes Middle East and most of the Indian subcontinent. The key to control Eurasia, says Brzezinski, is control over the Central Asian republics. And key to control over the Central Asian republics is Uzbekistan.

He also notes clearly (p. 53) that “any nation that had become dominant in Central Asia would directly threaten the ongoing U.S. control of oil-resources in the Persian Gulf.” By reading the book it becomes clear why the U.S. had a motive to take over the $ 300 billion Russian assets in 1990-ies, destabilize Russian currency (1998) and to ensure a weakened Russia would have to turn to the west, to Europe in order to survive economically and politically, instead to look south to Central Asia. A dependent Russia would lack the military, economic and political influence to penetrate and influence in the region and the weakening of Russia may explain why Russian President Vladimir Putin has been a willing ally of U.S. efforts to date.

A New Monetary System

M. Sc. (Economics)  Joern E. Vig, 14 August 2011

Mark Steyn on “After America,” London Riots and Keynesian Culture: Scribecast, the
Podcast of the Center for Media and Public Policy

The Norwegian Employers Association calculates almost as badly as I do

Source: http://www.nho.no:80/article23322.html

Næringslivets Hovedorganisasjon in Norweigh has publiced a press release that almost is something ‘not suited for the net’ under the system with information that totally (let’s say) undermine the official Danish immigrants’ costs. Twice the Danish official reports and also recently estimated the costs to less than 20 billion DDK yearly. Now the Norwegians have calculated the costs concerning immigrants’ load in Norweigh to about 60 billion N.kr.

[take into account that our total public budgets are at least 20-30 times smaller than the budget of USA]

……………………….

It is more than most peculiar taking into account that children born in Norweigh and naturalized is not included in the calculation (that alone shows that 60 bill. N.kr. does not do it), that has become custom all over the Western hemisphere. Add to that a much smaller number of immigrants and their children in Norweigh compared with the number in Denmark. In addition immigrants in Norweigh much more often are employed compared with those in Denmark.

Danish net expenditures concerning immigrants

Precisely five years after we began the blog:  http://Danmark.Wordpress.com   

Thank you Norweigh: http://www.youtube.com/watch?v=LUtiIMZIVOU

May 18th 2011,

 J. E. Vig, M. Sc. (Economics)

A Short Era Of New-Mercantilism

 

Three Steps Forwards Two Backwards
Petroeuro In The World Economy, And What We Really Need

“So-called hard euro is lighter than oil, that is the reason why it floats”
Choose a German version

Contents

Recommend this file

From monetary system via dollar-dominans to floating nominal currencies

The domain of dollar extends

The dollar seceded from the gold

Petrodollars

IMF – debt-crises

How USA dealt with its debts-increase

The US-world-reserve-role changing

Japan in debitor’s trap

Euro and European Union

Euro and its primery objectives

Fear of competition narrows the rationality

Euro-Union and globalization

Two suppliers of internaitonal monetary means

The need for introduction of real currency rates

More English files characterised by more contents than of form

From monetary system via dollar dominans to floating nominal currency rates:
The international system of payments after WW2 that USA and Britain actual decided, while the war was going on, in 1944 in Bretton Woods, New Hampshire, USA, tranformed the dollar to a so-called reserve currency; most of the worldtrade was agreed upon in dollars. Central banks all over the world kept a considerable reserve amount of dollars in order to be able to protect the national currency when too much imbalance in foreign trade occurred, and other currencies were expected to be measured secured in terms of the dollarvalue. The value of dollar was connected directly to the goldprice, $35 per ounce fine gold. The dollar dominans in the world trade alone implied even larger dollar reserves in the central banks all over the world. The Marshall Plan after the war secured the rebuilding of Europe; but it actually did not cost USA a cent, because the dollars (-bills) obviously are much cheaper to provide than other goods and services. When dollars returned by the accounting for goods and services in USA they made trade impacts on the American economy, otherwise they did not. But almost none of them returned. At the same time USA could import almost unlimited and pay with more dollars that did not return either. Large amounts of dollars that piled up for example in consequence of the positive result of the balances of trade were invested in interest-bearing and currency secured American government bonds and other assets. With this system the leading economic power was tempted to accept large deficits on balance of trade equalized by missuse of the means of payment via this issuing of money. The result was that US received the foreign goods for free. This arrangement simply could not continue in the long run or could it? Without going into details, inflation and state-debt was introduced as an obvious possebility among the professional politicians, who did not worry particularily about nation and tradition, and certainly did not know the hard conditions. Devaluations on behalf of the nation, and the initiatives of the state itself were also included in this dismantling, and devaluations in cooperation with IMF came like af thief in the night in a row of cases, because the really needed of necessity had to be done in time to prevent this vicious spiral to continue in the nations: Finance crisis upon finance crisis around the globe.
It was certainly not new phenomenons that were introduced by the Bretton Woods System. At the peace conference, the Wienna Congress in 1815 and the bankructcy of Denmark 1813 followed a devaluation of 90%. The collapsed monetary system from 1944 that has not yet been replaced by a new one actually had some bad temptation for the politicians built in depending on the character of the leading figures. Of other decicing impacts in the long run the following have to be mentioned:

• Dollar and petrodollar dominans in international trade with artificial values at home and abroad – totally independent ofthe real domestic economy
• Competing European euro-system based upon an official approved politician-phantacy on the former German stability and growth, now among indebted nations with adjustment turned downwards via wage rates and minimum standards of ecology and of social level.
• The way to real economic recovery of Europe was prevented, in addition the unlimitation of the markets was encouraged without any self-regulating mechanism of competition directed out of the euro-zone, and combined with a clossusish lack of competition in the other markets except for the market for disguised subsidies to a too expensive structure
• Indebted nations around the globe after two generations

An explosion of the amount of means of payment and speculation that would not be possible without the built in defects originating the from birth of the Bretton Woods System, to such a degree that the real economies in the nations are totally secluded from the system of international payments, that they were meant to protect in order to protect the nation

The domain of the dollar extends:
On the other hand the arrangement was binding for USA, externally, in the world of realities characterized by practical rebuilding of production-capacity, markets and defending efforts under the Cold War. And the rest of the world could redeem dollars at the goldsprice as required, granted that USA as an economic superpower was able to secure the dollar-value settled in gold. USA was the only country to guarantee and carry out the redemption of dollars for gold as it had the largest gold-reserves. Western Europa quickly recovered, and the growth lead to large European export surpluses that at the same time created an dollar-accummulation in the export countries. As early as in the 1960s France began to redeem dollars for gold, and others followed. At same time USA was engaged in the Vietnam War and elsewhere. This brought the deficits on the public finances in an uninflated heavenward flight of the time. In 1967 the drain of the gold-reserves in USA and Bank of in England in Britain to a critical point. That France and other Eruopean countries definitely according to the agreement increased the redemtion of dollars for gold brought the dollar under pressure, given that the goldprice measured in dollars continuing was kept unchanged. It was expected that USA would devaluate the price of the dollar in relatively to gold with a continuous bigger and bigger pressure from the demand for gold, and also from USA’s deficit on the balance of trade plus the still unfinanced war-deficits on the domestic public budget. At the same time most of European countries gradually “dyed their money issuing in dollar-green”, and they also began the inflationary growth that went into stagnating production and employment with still higher inflation to end up with a rate of short interest of 21%. This was indeed the characteristic economic consequences of the welfare that substituted wealth in Scandinavia in the 1970s.

Dollar seceded from gold:
In 1971 Britain also began side by side with France to order redemtion of dollar for gold. Instead of contnuing towards a predictable collapse of the market USA left the redemtion of gold in august 1971. That actually meant that the international monetary system built up a little on gold but much more on dollars dismantled as forseen by almost everybody (among others the Norwegian negociators in Bretton Woods), and the world changed to the system with floating nominal rates of currency[1].You may also call this international financial anarchy, if you have understood that the grocer of that time could not sell the scales, and still claim to supply his freshly ground weighed coffee.

Petrodollars:
OPEC is a cartel that agrees upon a common oil price and distribute quotes of production-capacity among each other. OPEC was founded by Iran, Irak, Saudi Arabia, and Venezuela September 1960 (later on more countries joined) with the clear objective to “coordinate and unite” the oil policy in the member countries. After the Teheran Conference 1971 (where the price-settle-initiative was tranfered from the oil companies to the exporting governments) the buyer’s market for oil closed down. Now the need for a floating dollar rate emerged, if the economic worldpower USA – still with trade deficits – should not lose ground. October 1973 OPEC sent price on the oil to the sky with rise of 400%, and at the same time imposed an embargo that forbid shipping of oil to every country that had supported Israel in the “Yom Kippur War” against Egypt, and OPEC reduced the production with 25%. USA had previous reached an informal agreement with Saudi Arabia that the country could invest in USA, if USA assisted Saudi Arabia develop its economy. Apart from the tremendous oil prices-rises – there was another smaller one in 1979 – there was nothing catastrophic in the oil countries requiering more for their oil, when the reserves were limited. The profits earned by sale of oil accounted in dollars floated into bank accounts in Britain and USA, when the OPEC-countries simply could not find a better investment for the petrodollars right away. The problem arising was to allocate the money back into the productive circulation – recycle petrodollars -, now that the West rode on wave of combined stagnation and inflation at the same time. This new phenomenon – the Philip-Curve moved, but not until reality gave inspiration to loosen the premises of the theory – was caused by issuing of money-units, irreversible increases in wage rates and deficit on the public budget. [The reason why was not the oilprice rises even though that was persistently claimed (for 10-15 years) – if not it could be claimed that so-called crisis followed from the heavenward fligt of the oil prices had to be renamed to the normal state. So-called euro-dollar-bonds were issued and became the guarantee foundation for private lending from private banks to the Third World with the Bretton Woods organizations – IMF and the World Bank – in a the role as mediators. The developing countries could not provide money to the more expensive oil from other sources[2].
Petrodollar were the foundation of a huge number of hopeless lending-arrangements, and thereby also the propellant for at lot of debt-crises in the 1980s, and in the 1990s also among more developed nations in Latin America, Asia and Europe. Who created the risks, and who transferred these risks, and who had to bear the resposibility in the end?
In February 1945 USA made an agreement with the Saudi king about military protection of Saudi Arabia, if USA was given priority to the oil sources of the country. Even though the oil occurences were nationalized in 1976 ARAMCO (an association of Arabic and American companies) was controlling the production and the markets for oil outside Saudi Arabia. Surplus of petrodollars was invested in American government bonds. This market is obviously a power potentiale in the hands of the world’s leading millitary power. An example: In 1980 Iran’s and Libya’s assets in USA was confiscated, and recently organzations dealing with international terrorism suffered the same fate.

IMF – Debt Crises:
With the organization of IMF – International Monetary Fonds – a link in the international monetary- and ledingsystem, it often was a merciless fight of debt collection against weak founded states in the Third World. It was underlined from a few sources that the yearly new borrowing in Western Europe actually was bigger that the total debt of the developing countries in the 1970s. If we take the question of creditworthiness: the single states that decided the agreement of the Bretton Woods System paid in money, but most were given guarantees[3] in the foundations of IMF on behalf of the nations’ taxpayers, and in accordance to how large an economy the nations represented, so the responsibility for the many lending-dispositions in private banks, particulary to the states in the developing countries was rather often in quite another place than the initiative. How these lending-arrangements and other international arrangement was established, you can among others read in Frederick K. Listers ‘Decisi­on-Making Strategies for international Organisations: The IMF Model’, Denver, USA 1984.

How USA dealt with its debts-increase:
About 70% of world trade is contracted in dollars. Oil is the most important good in the world, all countries have to get oil, and if they do not have oil they have to buy it, for dollars. That has been the reality for the last 40 years. Recycling of petrodollars have simply been the price that USA have requiered of the oil producing countries for having USA to tolerate an oil exporting supplying-cartel OPEC since 1973. For about two decades USA’s deficit on balance of foreign trade has increased most of the time. Today it amounts to about 25% of the American Gross Net Production (GNP) or about $2.5 (European) billions or $2.5 (American) trillions. In 1988 the balance of trade was in balance, and at this time USA was a creditor nation. Since 2002 the yearly public deficit has been $450-600 (American) billions, or 4.5-6.0% of GNP compared with 1.3% of GNP in 2000, when both federal and the states’ deficits are incounted. Russia and Asiatic central banks in China, South Corea and Japan have bought American government bonds and other assets in accordance with more than 60% of the total public domestic deficit, for more than 1 trillion the last three years to keep up the dollar against Asiatic currencies that actually reduces the domestic issuing of monetary means substantial compared with what it must have been without the Asiatic demand and everything equal. It also appears from the fact that inflation is apparently still under control (in spite of the fact that inflation has a delay before it reach full strenght), and the employment is rising substantial in the fall of 2004. November 24th 2004 the dollar hit the lowest point compared with Yen for the last 9 years and the lowest point compared with Swiss francs for the last 4 years. China began selling dollars of a substantial amount November 27th 2004.
In the first half of 2004 more than $201 billions assets were bought up by foreign central banks. Of these are $180 billions American government bonds. In Japan are large parts of the bonds placed as security for Japanese banks that otherwise would have gone bankruptcy, more below. In the case China, it is the result of a large new export of price-competing goods to USA, for example outsourced American, and also Chinese productions that result in the large accumulation of dollars. They are invested in American government bonds and real investments outside China. The currency rate of Chinese yuan is linked to the dollar rate – and this is not just an implication of the buy up of government bonds. This means that the yuan without the US-bonds perhaps would have been in the same boat as USA, when the dollar may fall further. A still continuing fall of about 20% or more of the dollar would lead to a fall in the stock market prices, and also lead to higher dividends, when foreign entries move investments away. 40% of the American government bonds are owned by foreigners, like 25% of the business bonds, and 13% of the US ordinary shares. Behind the placement of the US-debt you also have to take into consideration that China’s demand for energy for the industrial sector is expected to be dubbled in the next 15 years, and the Chinese demand for electricity is expected to dubble in the next 10 year, and to be multipied with four before 2019. Until now USA has been the only country that can increase its purchasing-power on the world market by issuing more dollar-notes. The US-import is about 50% or in dollar-terms or $310 billions more produced produkts than USA export (yearly). That put the country in a special situation, characterized by both power and vulnerability. Without this central, very peculiar status of the dollar and a consequent and constant flow of capital-investments from the whole world, the country would quickly heel over in a catastrophic crisis of balance of payments.

The US-world-reserve-role changing:
From November 2000 Iraque began to settle its oil sale in euro, and at the same time it converted the reserve-foundation “Oil for Food” with $10 billions to euro after an agreement with UN. Between 2001 and February 2003 almost the entier Iraqi oil export was paid in euro, about $30 billions. In the same period the euro increased relatively compared with dollars with 30%. Saddam Hussein had already offered concessions of oil extration to France, China, Russia, Brasil, Italy and Malaysia. Saddam Hussein had until then only used Eruopean banks to the limited sanction program, “Food For Oil”. He awarded the Palestinians with 1 billion euros in 2000. A short time later EU awarded the Palestinians with 90 million euros as a subsidy to show its friendship with the Arabic World, if Israel canceled its payments at that time. A few days later the European Investment Bank made an agreement to lent Syria 75 million euros after eight year with sanctions of have been shut out from making businesses with this country. A little earlier, August 2000, EU donated 1.7 million euros as a subsidy to Eritreans, Etiopeans, Somalis and repatriated asylum seekers from Yemen after the war with Etiopia and famine. Subsidy from EU in euros again: not long ago the Italian Prime Minister Berlusconi proposed an European version of the “Marshall Plan” which he characterized as a generous act to rebuild Europe. He proposed to give the Palestinians a help of a value of 6.2 billion euros in a period of five years.[These last things are included to characterize the motives and the understanding of the situation among the promoters.] From November 2000 to November 19th 2004 dollars decreased relatively to euro with 34.5%, from December 1st 2002 to November 19th 2004 with about 23.5%. A lower rate of dollar made the dubbled result, by lowering the enormous deficit on the balance of payments (an improved balance of trade and an improved balance of the flow of investments), and improve the competitiveness of the exporters that would result in higher investment, and higher employment in these exporting businesses. I addition a lot is pointing in the direction that the petrodollar adventure has ended caused by the increasing import in the oil producing countries, and the reduction of the relative share of OPEC in the total oil export.
Iraque has the second-largest known reserves of oil among the nations of the world. 45% of EU’s oil import comes from oil sources of the Middle East, 80% of Japan’s comes from the Middle East, that has 60% of the world’s known reserves. USA is not dependent on those oil sources. The shift to petroeuro that is mentioned by few is predicted to have huge effect only if Great Britain and Norweigh introduce euro that would result in North See “Brent” and the Norwegian oil supply being settled in euro. Shortly after Iraque’s move, Jordan began bilateral agreements with Iraque. August 2002 Iran converted more than the half of its currency reserves in Forex Reserve Fund to euros, and China also began to convert some of its currency reserves from dollar to euro. At the same time Russia dubbled the stock the Russian Central Bank of euro to 20% of the total $48 billions. An Iranian senior speaker of the oil industry Javad Yarjani noticed in a speech to the Spanish Ministry of Finance that “it was possible with a increasing trade between the Middle East and the European Union, and that it could be suitable to settle prices in euro. This would create more ties between these blocs of trade with an increasing trade, and at the same time promote a very needed European investment in the Middle East.”
The British Empire was brought on even keel via the need for Britain to import food, when the domestic agriculture was driven out by the industri. The American Empire may be brought on an even keel via the need for USA to import manufactured goods, when the domestic production was driven out by the financial services.
While the dollar has decreased since 2000 the price of oil settled in dollars has increased. The euro-price of crude oil remained almost the same in the four years period. It just don’t seem logic that this result should occur of simple by chance, and it does not seem to be a surprise either that others could begin supplying a dominant reserve currency. The money plans of EU has not been held entirely top secrete. It is most likely to be a result of considerations of thoroughly planning and design. It also seems as if OPEC react to the dollar depreciation in a most natural way; by increasing the oil price precisely to the point in accordance with the lost they would had to bear is removed.

Japan in debitors trap:
The rate of Japanese yen has decreased 5-7% a year compared with euro from 2001 to 2004, notice, a relative decrease to dollar of about the half. This means a yearly depreciation that makes Japanese products more expensive in Japan, and the country is far from being selfsufficient with food and energy. Japan has stagflation and did not get through the last stockshare-bubble-crash in Asia in 1997, because the banks in Japan continued to throw new money after bad money with guarantee of the government, mostly based on American government bonds. February 10th 2002, Observer notes: Japanese consumers flock round the banks to convert the quickly depreciating yen to gold bars. There is fear for the banksystem to collapse, when the deposit guarantee of the government is being removed in Mars. We wrote in 1999 that Japan-government tried to reuse the Japanese economic policy from 1920-1927: to issue billions of yennotes and new credits with which the banks bad loans could be bought up, the assets then had to be overestimated much like in the Weimar Republic in Germany. Now it unfortunately was I the period 1920-1927, where Japan handled precisely the same problem just as wrongly as now in the late 1990s that it would have the one to refer to, if we had to learn from experience. It is not true that history repete without further. But if leading figures use the same false way thinking on the same problem (for example as an act of bad faith), then the superstitious are tempted to believe that history repete.[And it is not totally false, apart from the fact that ignorance’s blind fate must be classified in categories of belonging to an earlier or the coming middle age.] Such a incomprehensible policy was really carried out, also concentrating at negative rates of interests and guarantee of the state for the banks to get the prices to rise “by stimulating the production in this way” in the misunderstood Keynesian way. The falling yen has really got helplessly stuck in a debt trap. The public debt is $5 trillions, a little less than the debt of USA that November 19th 2004 got its borrow-limits increased to $6.4 trillions. More state-debt is continuing contacted at still higher settled prices, even though it just increases the debt. The debt trap is closed, and there is no easy way out. Japan which regardless is an important industrial nation is also a substantial importer of oil. Japan’s surplus of trade from sails of cars and other products was used to import oil settled in dollars. The surplus was invested in American interest bearing government bond and other assets. The government of Japan owns 15% of the American Treasury assets. G-7 was founded to secure Japan and Western Europe within the dollar system. From time to time in 1980s statements about the three currencies – dollar German mark and yen – emerged from different Japanese sources that they should divide the world’s role of reserve under the floating nominal currencies. Until now the dollar remained the dominating.

Euro and European Union:
European Union with common compulsory money units, and a constitution is being established among EU’s 25 member-states now. That it is difficult to obtain adequate consensus among the Europeans about the common compulsory money unit is perhaps unnecessary to state. To establish an European monetary union right now, where all European countries are indebted more than ever – apart from perhaps two European countries outside EU -, dominated by unsatisfactory activity and employment anywhere in EU, and even negative growth in the three leading countries, France, Germany and Italy for the second, perhaps for a third year is more than a feat; it is an artificial, ideological construction. The national currency sovereignity has been abolished in the eurozone. The objective is obviously price stability and growth in the eurozone. For years we were lead to understand – in the open – that the currency reform guaranteed price-stable growth, even though the rules about the new currency in the Maastricht-treaty (for example: article 104C) tells something quite different; particulary concerning the newinvented, partly inconsistent and irrelevant so-called claims of convergency that can be overruled, if the Council of Ministers does not estimate the offence to been substantial. The countries – France and Germany – that put these claims into the treaty were the first to offence the rules about deficits, and the relative magnitude of state-debt compared with GNP – they did not even honor this selfchosen claim either without several manipulations with the respective budgets (redemtion of gold and seeling of pension duties) in both the countries, Germany and France, when they invite other countries to qualify for joining the monetary union on the same conditions. In 2004 it continues in Germany with selling of the pension duties of the civile mail-servants.

Euro and its primery objectives:
To assume the common compulsory money unit in any way should reflect the real economic in EU, and serve the union we obvious have misunderstood. Corresponding to Spain’s fatal administration of the gold extracted in Latin America in 1500s it looks as if the euro in the best Mercantilistic way via trade settled in euro for example oil from the Middle East is meant to generate the moment that created change in a Europe with not less than 20% unemployed (official 9%) or expelled, and an enormous state-debt that you no longer can make an unambiguous sketch of. Jean Monnet – one of the founding fathers of project – exactly claimed in the 1950s that the compulsory monetary unit would be used to make the union real in full scale. It was the form, before the contents that counted, we can conclude. If for example one of the Maastricht claims of convergence about the magnitude of the state-debt that must not exeed 60% of GNP should have meant anything serious, between the half and two thirds of countries could not have met this claim without to accept crises of stability. So much can be extracted of those real informations that are released time after time. Apart from Mercantilism that according to history ended with the Napoleonic wars stability and development cannot be measured as an index of prices or some procent-figure. Or when some quantitative standards have been registered, then you can talk about a stable currency (with reference to the five Maastricht-claims of convergence). Stability include the dynamics of the capital formation, security of the investment process, economic growth, education and new technology and high productitiy in a state to claim that its leaders have taken the voters and the nation seriously. All this cannot be obtained or be calculated as some simple static concept. France and the most of the other countries were against the so-called stability pact that could have secured that the central bank acted like the old German Bundesbank, and kept the reins tight, but from quite another starting point. It was decided at the summit of Dublin in December 1998 to drop the stability pact, and France made too large deficits on the public finances in both 2002 and 2003 compared with the Maastricht provisions. The struggle about who should point out the president of ECB (European Central Bank) ended with France. The German Bundesbank was out of step with the German political, financial and industrial elite. But the bank was very popular in the German public opinion. Therefore the politician Helmuth Kohl was very hard pressed between the German and the French Establisment. The French socialists had built in their claims to the subsequent treaties. Now Kohl has gone, and the new German kanzler is a centralist himself. EU has in return recommended a German as leader of IMF. Kohl also had to eat that there were no more talk about pure automatic sanction against a country that makes continuing deficits. Now the claims is activated (according to Maastricht-treaty) when 2/3 of the weighed votes in the actively participating EMU – countries vote for sanctions. France also got approved that a so-called stability-council, and at the same time a directly political rolle built into the monetary policy so that for example guiding lines for the euro currency have to be fomulated politically now.
In addition to introduce the pure (economic) stability pact without order in the member-states’ economies would lead to real political instability. If the amount of money and credit cannot be debated in the whole eurozone, because it has to be decided by a hard ECB, the consequences would be so terrifying hard in some parts the union that political instability would inevitable be the result. Italy and Greece are obvious examples.
To defect this you can then introduce the more well-going countries to hand over “some surplus” from the public finances or “commit themselves to this in advance” (but the problem is that no state can or will do so) to the bad-going Italy, Belgium, Greece, Portugal and Poland. This means on plain English that the public expenditures have to be controled euro by euro in the whole eurozone. This is common financial policy. On that assumption every extravagant expenditure, and a lot more will certainly be stoped.
If you should judge by the falling D-Mark and the rising Italian lira in 1997-1998, the markets had to have the impression that a soft euro was being established. There was a completely unknown but collosal amount of lira that should have an eternal determined rate in euro in July 1998. How this could happen without a soft euro, would be intereting to have explained, and there were lots of other problems pointing in the same direction.
Already in 1996 you could foresee that the euro would be a so-called junk-currency – that was what the speculators called it -, if Germany, France and Britain should take over the Italian enormous mountain of debt. This would lead to result that ECB had to guarantee the solvence of both Italia, Belgium, and all the other heavily indebted member countries, for example Greece, and the countries that could be expected to join EU in the Eastern Europe at that time. In this way an alliance would be created that would press ECB, and get it to act as if it still controled the monetary policy without really doing this. That was what happened. Real EMU-stringency after the book multiplied by three or four is what should be expected, if we assume economic stability should succeed in the present situation – without a strong lever from outside. But this would imply the lost of political stability as the relations are and may be expected to develop, and the disappointment with the whole project would lead to even more resistance against the project. That is the reason why they still act as if.

Fear of competition narrows the rationality:
Globalization means the unlimited mobility of markets included the capital market. The globalization will destroy the democratic society and the welfare state, many maintain. The only reason why is lack of an international monetary system that would have prevented the worst. The total mobility of capital undermine the abilities of the states to regulate. Especially the concern for the labor market: Untercuting and cutbacks have to absorbe what threats to disappear of jobs, among other things by outsourcing. The globale markets of financing are not subject to a regulating mechanism of competition, and they causes crisis upon crisis – Asia, Mexico, Russia and Latin America. The crises will become deeper caused by the paper-mountain of the state-debt that widening the difference between nominal and real values in every community in the long run. And because you have chosen to sell the tape measure instead of using the tape to measure with according to its purpose. It gets worser when all the leaders of the states continues to borrow net more and more. The crises tighten the social pressure with requirements of cutbacks. The pressure of the crises either lead to the dismantling of the welfare states or change them into linked defending blocs (currency blocs like euro, dollar, yen or renminbi-zones) or relapse to the old enemy-pictures that characterized the national states earlier, perhaps a combination of both scenaries. With the dismantling of the democratic founded national- and social state the globalization releases itself at last, because the politicians cannot stand for that the populations/the voters of their countries have to bear heavier and heavier burdens just to offset the worst.
Euro-Union is the prototype of this development. Its bad hidden dubble-motive is a) fear of the dollar-dominans and –competition and b) fear of the united Germany with matching D-Mark-regime.
Fear always build on a false analysis. The US-dollar does not threaten the European market shares of the world trade, but Europe’s lack of knowledge, technique and initiative, especially Europe’s inertia when comes to reforms and renewels. The hardness and the strenght of the D-mark did not prevent the development and the integration of Europe, but the since “Maastricht” the aim was abolishment of the D-mark, and that has then happened. The explanation was that D-mark should have driven the countries in the eurozone (now) into a tight negative development against reforms and with social limitations. Alone these fallacies and false assumption do not allow any realistic expectations about a hard euro. The inflation was programmed in advance. It is perhaps possible to blow more air into it by leting it float in oil at the beginning, but the collapse is then going to be even bigger. All member countries are deeply indebted, and all of them run with deficits.
The national governments lost their instruments of management right at the beginning of the euro (currency rate, interest rate, amount of money and flexible budget). They can no longer secure the values of the money, and regulate the labor market, and the social- and ecological standards that the same policians had introduced. Differences of structure and of competition will with governmental suspension be equalized by the market. The battlefield number one is the labor market now, and the social and ecological systems. The labor market suffers from the diminishing of the middle class, the wage rate and social cost competition originate from the workers in the southern and eastern EU-povety-zones, and an inevitable liquidation of the decided national union-wage rates and the minimumstandards of the social level till now. The market sweeps them away, the employers uses more and more their potential of threat that is to move their productions to especially favourable (wage rate, social- and ecologic cheap) EU-zones. Wage rates, social standards and claims of environment in Euroland have to be harmonized downwards. It is the naive imagination of socialdemocrats, the folk socialists and unions that these things must be better after they have signed the Maastricht-treaty. In Euro-Union the social policy has resigned forever – and it is happening with full accept of the socialdemocrats, the folksocialists and unions.

Euro-Union and globalization:
Euro-Union is not the remedy against the employment crisis of globalization. There is nothing special about this globalization; that is an apophthegm; international competition is the right word. Euro-Union strengthens the power of the capital, and helplessness of the state in the role where nothing real can be done to the unemployment without to have the needed instruments. It is a progress towards the 19th century (here the instrument of ruling were searched too), not towards the 21st century. Euro-Union is not even a counterbalance against the unsocial tendenses in the globalization, as the incompetent analysers from the left maintain; it strengthens them further. It simply forces the working life towards the monetary commandos. The European Central Bank (ECB) has to pursue the totally same policy in the 12 different structure countries, without the possebility to resort to the equalizing of the nominal currency rates. To prevent the capital from leaving the eurozone the central bank will have to increase til interest rate; but this decreases the activity and rises the unemployment further. Such an union must end in the conflicts among the states, from which there is no no help to find – if the euro-union is not rebuilt to a transferunion or an federal state with public equalizing between old and new member states, something like the patchwork USA or the German Federal Republic, but without the D-mark. When the transmission of these models show themselves impossible or they meet resistance the question arises: Are there alternative models that can save the world peace? As it runs now: Europe and Arabic world has already begun to cooperate economical, as it was forecasted in North-South-Dialog from 1968 and the European-Arabic Dialog from the midd 1970s. Egypt, Jordan, Marocco and Tunesia decided last year to establish a zone of free trade[4], and Algeria, Libanon, Mauretanien, the Palestinian authority and Syria are being invited to join this big zone of free trade. Egypt is expected fully admited in this group of free trade. However EU has negociated with 12 Miditerranean countries as a part of the so-called Barcelona-Process about cooperation between EU and its neighbors around the Miditerranean towards south. The aim in the long run with this Barcelona Process is to establish tighter bond of trade and social questions as well as of political kind. This will lead to the creation of the Euro-Miditerranean-Freetrade-Zone consisting of 27 countries in 2010.
It is possible that the European productions in future may be transferred to North Africa, the Middle East and Eastern Europe, until they come up, and we are put totally down. It is a question if the populations submit to that.

Two suppliers of internationale monetary means:
With the last European-monetary move – if it is an experiment of establishing of the euro as a possible reserve currency or currency for price-settling to some extent in line of the American dollar – no real lift of Euro-Union will happen. “If the occasion should arise there would be to ice cream booths on almost the same bathing beach. The difference to the metaphor is that the booths are supplying monetary means to be able to live on the products of other countries instead of supplying more ice creams, and employ its own working force to produce more products and more services. The climate of investment is far better in the dollarzone of the beach, and the other products and services are far more competitive in the dollarzone. The European Central Bank is organized to prevent euro from falling; it has no means to prevent euro from rising. If ECB are going to issue more subsidy-euros that are covered by the real economy, the economy is further twisted. The deficits on the public finances in the two leading countries of euro-union are of the same magnitude, when compared relatively with GNP, like the corresponding in USA, about 4% against 4,5-6%. But here you have to take into consideration that the whole here is threathened by deflation, if the euro increases 20% further, because the growth in the three leading countries in the eurozone is close to zero. The dollarzone can expect a tremendous improvement of its tradebalance. If this zone is perhaps going towards a more sound value of the dollar, it tempting to propose the single lacking arrangement. A common instrument to prevent crisis upon crisis, deeper and deeper, and at the same time secure that the monetary means are used to what truly is their only useful aim. The classical economists, for example David Hume and John Stuart Mill proved in the 1700s that without order in the monetary relations, there will not be any order in the markets of products. Without an international order of money and credits that is in the interest of the big trading countries, it will go wrong.

The need for introducing of real currency rates:
The ruling monetary system until 1971 was not the agreement that the chief-negociator of England maintained for a long time was best to be chosen. To protect against crises and inflation J. M. Keynes showed an internationalt emission-agency with an international monetary unit that was not fully negotiable. It could be bought for gold, but not the other way round. Only if the states of their free will stop the inflation-orgies and the state-borrowing or devaluate (by compulsory) or let the money amount and the credit be ruled by others, it is possible bring harmony into the international system of payment, Keynes maintained. The incitament to speculation is removed at the same time. A monetary measuring instrument without banknotes to determine real currency rates, and it is certanly not suitable to force out national currencies.
Real currency rates are the present nominal currency rates corrected for inflation. We have seen in the last half of 1900s that inflation is a distinctly harmful phenomenon. If inflation had made a country’s products lesser competitive, the country could just devaluate the nominal currency rate relatively to all other countries, and in this way benefit by the lower price of its export products, and higher prices of the import products; the exhange-relations to other countries has then been changed. Regardless if this trafic had to be repeated to have any effect – except for inflation – it was the way countries used to go not long time after The Second World War and the reparation.
There must a possibility for countries to make inflation for limited periods, caused by some structural or developing matters that have to be arranged. Such a possibility must excist, but in such way that other countries are not harmed by this inflation. The country that need inflation have to devaluate at once in advance. It is easy to incount inflation into the currency rate. By this are all other countries protected against inflation, and also against deflation, where the negative growth can lead to standstill, if the right monetary intervention are not carried out in time, as we saw it the 1920s and 1930s. No national currency must be brought into the international monetary system. We have had a much similar system under the so-called gold-coin-basic that was especially connected to the appearance of industralism, its early development, and the worldtrade via City, London. Goldstandard (a looser system) became the pivotal point, but the gold was at the same time a good of trade and therefore it did not have a settled value in itself, but the price was decided by supply and demand from the central banks, lastly a politically decided. An international monetary unit a little corresponding to the ECU – originaly the voluntary European currency unit emitted from an independ organ; it could be exchanged when needed, but for the present aim just a unit of account. A unit of account in an published, settled amount, and at a settled price, an account and reserve unit. No saleable instrument that get impacts from any supply or demand. And international arena where both debitor and credit have to pay interest on loans with the new reserve unit as guarantee, so we prevent lending out at random, and if it does go wrong, ordinary people should not be cheated every time, and it should also prevent crises of finances from overturn one deloping or misinformated country, one upon the other. You can call it a nationalbank of the world as a foundation for the international trade. It is simplicity that everyone can understand: we cannot control the national/international markets of currency from a national central bank, if the international montary unit is for sale, and thereby has become a multi-lend of all national currencies.
I knew that when I was 21 years old in 1971, and USA ”left the gold” as it was expressed, but selfconfidence grow with experience. I learnt little of economics that offered me a more solid ground to argue from.
And we perhaps have to go through another catastrophe before the leaders understand, what their predecessors did definitely wrong, or were lead to make definitely wrong from their in many respects marionet positions.

Supplementary readings:
Economics of Tide:
Big recessions and recoveries in the 20^th century : http://www.lilliput-information.com/economics/tida.html (part 1)

Big recessions and recoveries in the 20^th century (including the role of private company with anonymous ownership):http://www.lilliput-information.com/economics/tidb.html (part 2)

Goldstandard in all combinations:

Gold as an international unit of account for values – a historical statement: http://www.lilliput-information.com/economics/gol1/gol1.htm (part 1)

Gold as an international unit of account for values – a historical statement: http://www.lilliput-information.com/economics/gol2/gol2.html (part 2)

Keynesianism, the misused of J. M. Keynes theories:

J. M. Keynes’ theories, the moment that actual inspired the last dependence: http://www.lilliput-information.com/economics/keyne.html.

November 27^th 2004,

M. Sc. (Economics) Joern E. Vig, Denmark,

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[1] We remember how the nominal rates of currency sometimes were devaluated by one country or a group of countries at the same time. We were sure it must be some kind of advanced swindle with the values. We wondered that the other countries accepted it, but we did not fully understood the consequence of fraud then, to all of us. Other arguments than the need for working capital were certainly used.[3]The roles were exchanged from the beginning, The World Bank was no bank, but a foundation, and the foundation was a bank, so let’s describe the first: ”With a share capital of $10 billion distributed among 100,000 shares that should be taken over by the member-states participating in the maintenance of the bank (mine: that certainly was not a foundation neither from the beginning or later on). Admission to this was given to states, that were members of The International Monetary Foundation, but later on other states were given admission too. That was the reason why only $9.1 billion of share capital was supplied at the founding meeting. 20% of the capital should be paid in, of which one tenth in gold (in reality then just 2%), occupied countries could postpone a quarter of payment in gold for 5 years. The main task of the bank was via (mine: private) lending or guarantees to promote the reparation after the war og hereby contribute to the delopment of the international trade and increase the productivity and living standards in the long run. Direct lending should be effected, if the borrower could not achieve a private loan or a gurantee on fair conditions. The management of the bank should be organized after the same principles as the principles in the International Monetary Foundation.” The former Danish Prime Minister Viggo Kampman wrote so as a civil servant in 1944. The italicized originates from the present author. [4]Free-trade-considerations usually result in more than free trade, when we look behind the political rhetoric, and let the experience count.

Day Of Denmark – Day Of The Western World

The time is characterized by form without contents

In addition

Praeterea censeo….

NO CLIMATE CHANGE CAUSED BY MAN
Link: https://www.youtube.com/watch?v=52Mx0_8YEtg
Shown as clear as the day in 2007 (click at the arrow above)

Financial crisis and the value crisis – let’s have it all – is unfortunately a repited and natural thing

First the shares were filled with hot air by companies that began to issue more and more paper, and when rates continued to rise in certain key industries, which was wildly exaggerated by the media, it was quite a fad to buy shares and offering equity securities, now savings rates at banks were of no special interest anymore. First they speculated themselves cross-eyed at an IT boom, then housing prices started to increase, the credit was even extended tgo accelerate speculation and the same were tax-funded grants to property owners via legislation in the last phase (in Denmark). Can the responsibility be placed ? Easy.

Sometimes in August 2001, we could read in the papers “So let the kids, indeed”; ‘they should invest their savings in the stock market’. ‘It goes so well and we were all so rich’. And it was a lie. “More speculation, thanks” was the title of an article in Berlingske Tidende. It contained additionally only empty talk, so no information.

The dividend that companies were expected to give was no longer created by ordinary business expectations for the future, as it appeared. It was determined by the share prices determined by supply and demand for capital gain by buying and selling (stock) paper.

Companies in large numbers were recorded and publicly available on the market to get capital – they actual earned too little many of them in the normal way (hush,hush!). The IPO could obviously only be done by showing good financial results. Here you had to have  a good accountant if you had troubles, and sometimes even a good relationship with his bank too.

Investment in shares that are supplied assiduously, deliver needed or much coveted capital – perhaps it actually had been impossible the earn comparing amounts by ordinary economic activities and will be even more difficult in the future with alle those demanding papers, and perhaps almost all the dividend-oriented shareholders expected what other share supplier seem to able to give. Perhaps this was a reason for a great deal to jump on the wagon, the speculator-wagon, now they got the chance.

The possibility existed now: You and several others invested well advised (effectively anyway) by banks and by the press. Others did the same, and eventually the share rates began to rise, but just because all or many small ones in market would invest. Shares had been made interesting for regular people with various games in the newspapers and everything else had been done to prepared the show.

The share price did not increase because the company showed rising earnings from – remember this! – what indeed was its appointed task to produce and sell. But rates rose and more increases came in because more share were demanded than could be supplied, it was a game, simply because purchasing power was present or there could be borrowed for the messy project too, and then because the company offered more and more papers for sale in an apparently insatiable market. It all went to the papers. But what about the ordinary activities of the business? The press shouted out daily in the recovery, recovery rates increases – in order to maintain the illusion of a boom. The reality was:

Rates and expectations for future returns in the business would soon join reality. The race was run already in 1999.
Come on, join the party before its too late, because it certainly will get too late? It was too late! When I heard the midst of the madness that phone provider for Nokia few years earlier made an annual profit, 50% higher than the year before, and  simultaneously, the rate of Nokia shares – meaning  the expected value of each krona invested in Nokia – fell by 50% over the same period, something had gone completely wrong, either with expectations — which is what determines the share price – and/or the issuance of new shares and the corresponding influx of new equity, which had flowed to join the firm. There were many others.

It could also be different: rates rose, but prices were just expectations of future returns, which could not hold because the company could not meet the enormous demands which gains asked for – low or no yields calculated from the face value helped a lot on the tour further round and round on roundabout, but eventually the ordinary shareholder found out that it did not help to throw more paper into the market, perhaps the security meant something, and the role as ordinary controller investors meant something yet. In other places constructions developed that meant some key figures and some directors could steal the invested capital instead of incorporating it in the business’ activity.

The fact was that firms in large scale had been unable to manage the capital resulting from share sales in a responsible manner, without even resorting to speculation. The media scream continued daily for recovery which, when you listened, should be understand as if it simply no end would take. And it was a lie. The underlying idea could very well be getting the accidents divided/distributed to the latecomers now the madness had been running too long. How beautiful. Instead of making money from ordinary business activities one could still retrieve capital through share sale, more and more until shares were not able to make interest/yield dividends by any profitable activity – be it real production or by speculation.

So politicians opened opportunities for increased credit in houses and easier access to houses and other properties paid on credit. So almost all owners (old and new) could be involved in “making money” without doing anything. Companies and banks also jumped on the bandwagon.
Accidents that were started were again divided into many more. Then the options were exhausted, and there were no other/more speculation objects back other than pyramid schemes – that’s it …. like in Albania.

I addition the last row of houses and buildings gave an extra volume of “Distorting consumption employment” for a short time to the short-sighted politicians of all kinds, as we reported, when the purchasing power was pulled out by circulation of the houses and buildings and over-indebtedness of inflated values and devalued liabilities and the difference was then consumed. Nobody had actually earned money, but the businesses adapted it as real economics so it becomes much worse afterwards when it shows it self to be funny economics.

All together money devastation and destruction of valuations to keep the speculation started with good faith in the lie – called the ‘trust’ from the ordinary in the media industry.

Real capital is the quintessence of those goods that produces the means of our consumption, and that maintains itself while the production is going on. Capital as a function. The permanent real capital are bind for a longer period in land, buildings and equipment, eventually in inventory. The floating capital is bound in the input of factors in the process of production while this process is running, and eventually in the inventory. The process of production will typically be repeated.

Private capital is characterized by the sum of rights that permits unearned income (often in form of interest and profit due to appreciation), where it is not possible to show any connection to productive activity.

The capital formation should be concentrated in production to satisfy the all kind of needs including the needs of meaningful activity of the labour. The natural order will always turn capital formation in this most profitable real direction among human beings in the long run. But there has never been and never will be a natural order thanks to the politicians acting within an ineffective constitutional protection of the citizens.

Only with this interference the capital formation is directed the stream into private capitalization instead or abroad. As it gets worser the politicians have to incur debt by the international bankers, because all the money issuing at home gets the prices of our goods to rise further than the competition allows. The papers (shares and bonds) in the private limited company and the state-debt-bonds make it even worser. The purchasing power has been pulled out of real production by to high wages, made too high by the too high taxes, both of them simply drains the real capital to private interest earning capital outside the production. You cannot claim that all political leaders are just as insane as all the others all the time.

An example:If you get a public subsidy covering a part of the cost in order to prompt you to renew your apartment houses but without collecting the necessary amount of money by taxation, perhaps I would ask why you did not renew the houses without the public subsidy, and while you are being very fond of the public subsidy, perhaps I will also try to get a public subsidy to renew those houses of mine. The raison to the public inter-ference is the political problems in this case following the increasing unemployment also caused by political interference and the monopoly (read close to dictatorship) of the trade unions. They are talking about renewing the towns. That is a lie. There are several other cases collected from the ideology on the life of the so-called good people that every modern politician literally has to live on. With the public subsidy the rents of the apartments increases perhaps 15-20 p.c., and the so-called value of the apartment houses increases with the capitalization of this increase (the present value of the yearly of monthly increases). When the total rent of the apartments of Copenhagen from 1914 to 1926 increased with more than 40 mill. ddk. a year the fine originators have without the society had become richer created about 500 mill.ddk more private capital, realized, when the apartment houses were sold. That is the capitalization of 40 mill. kr. a year anno 1925. A big part of this amount ran into consumption. In WW a surplus capitalization was made by the share and bond markets and by loans used to pay dividends accounted on a false basis of the values of inventory and equipment.

Read Professor Lauritz V. Birck and the Danish History Of Ship Companies 1912-1920 (and about The Crash Of Landmandsbanken, in Danish http://www.lilliput-information.com/economics/app3.html .)

Denmark was very close to the limit of bankruptcy 1923 thanks to our fine President of the centralbank Rubin and Brandes in the Department of Finances, who prefered to finance the unsatisfied needs and the unpleasantness of the war by loans, and then planned to let the small-holders’ values collapse after the war.

While they were dancing and at last were dying in paper money issued by fraud in USA the prices double more times in Denmark in the beginning of 1920s. Enormous fortunes were collected on private hands, while the state just through bonds into the market. If the state had collected a taxation on fortunes once and for all in 1919 instead of telling the people that you can finance a war with nothing, Denmark would not have had any very serious problems later on. Instead they let the inflation run directly into deflation, where all values (real capital) began to be destroyed.

You have capitalized the possibilities of the future yield and trained the propertied classes to believe that war is a good business, the best investment at all. But you forgot to give them a lecture on the uncertainty of exchange rates, of the rate of interest and of the purchasing power to unspecialized (uneducated) individuals.

The real problem is not that people do not live twice here on the Earth. Their experience is just imperfect when it comes to reality, to real life, and this fact has been used time after time.

Some will try to learn from books and studies. But is not easy even if you are pretty clever. In four years 1935-1939 the concept state debt totally lost its meaning. In 1935 it meant everything, in 1939 it meant nothing. If you asked the logical question following this nonsense in the 1969 you got an answer from the professor saying between the lines that you had not understood anything at all. You certainly have to be strong as a 19 years old country boy.

A little from accurated financial history

A few quotations: Under “Must national debt be paid back”?

“…it is not a natural law that national debt ever should be paid back. The state must naturally pay back a loan, when the payments have to be paid, but if it is not convinient to decrease the debt, the payback can always be done by taking another loan… It is true by both raising a loan and by paying back that the only thing that matters is in what way it effects the economic life or the welfare of the society. There can not be given grounds for paying back national debt, if the effects that the paying back has is not wanted. If there is strong demand for labour under full employment at a moment in the society, the result can only be higher wage that necessary will lead to a rise in the prices, then it is perhaps convinient to collect more tax than necessary to cover the running expenditures, that means pay back the debt, because in that way the demand for resources will decrease. Before such condition has occured or better, before you wish to reduce the demand and the income of the society or a least stop its increasing, there obviously can not be given grounds for reducing the national debt…”

“When the state (on the other hand) is paying out money, it always receives the most of the amount from one or more citizens, and directly it creates an income in this way that correspond to the expenditure reduced by the part that goes abroad. If we for a moment assume that there is balance of the payments understood, as to every increase in import there is an export increase of the same amount, there is created with every expenditure an income of the magnitude in the society”.

“If the state in the same tempo, as it gives money away, collects taxes that are paid of means that the taxpayers otherwise would have given out for demand, or raises a loan that is yielded from money, that on the other hand would have been given out for labor and materials, there will obvious not neither be a smaller nor a larger total income in society, the only thing that happens is that the state now confiscates some resources that on the other hand would have been confiscated to private purposes, or would have benefited other persons than those who have the money now”.

“If the state on the other hand get the concerned money by taking it from its account in the national bank and the national bank does not tightening the credit elsewhere, or the state borrow on the market of bonds and the national bank by convinient buying of bonds prevents a fall in the courses, the expenditure of the state means (not alone) that there is created directly a whole new income of the same amount, but that those, who receive the money, again give some of it to people, who once again increases the expenditures. In this way an expenditure of the state creates for example within a year an increase in the income of the society in the same year, an income that perhaps is 23 times bigger than the paid out amount of money, and because the taxes in this country with the existing laws of taxation are about 25 p.c. of the income, will such an expenditure in the concerned or the next year perhaps give the state and municipalities an increasing tax income to an amount the half or three forth of the amount that can be the basic of the new expenditures or it can be used for lowering the taxes”.

Under “The balance sheet of the state”:

“If you actually want to operate with an idea of balanced sheet of the state as an expression of its economic situation, it must be the ability of the citizens to pay taxes compared with the expenditures that state is planning..” (unquote of the later Professor and Rockefeller Fellow Joergen Pedersen in: ‘Topical Economies Problems’, 1939)

Keynesianism, that Joergen Pedersen here is making marketing for, deals with problems of the society in a very unrealistic way. They are made to formulations of problems in a mathematical language of symbols or something just as limited, there has to be cleared up (as here) a logical, coherent chain of thoughts that neither fit the problem, as it really is, nor include all those things that practically effects the solution of the problem.

For example the influence on the economy of the funds, and the inflation have an inferior place in the works of Keynes and in the works of his epigones.

The same can be said about the national debt, as it appears. The new system (at that time) that should be built up in the after war period, should give exactly free admission to incur national debt. And it certainly did.

The targets for the society are always something like employment, activity and similar. The effect of the public sector on the economy is not interesting to a Keynesian, and you will at once be in doubt if the declared targets for the economy are anything but to ‘the exterior’ opinion, as Keynes himself called it, before he won the Nobel Prize (se below).

The whole entrance to the Keynesian way of thinking gives evidence of a fatal need of interest of reality, for example if the assumption all together and each of them draw a true picture of the reality at all, and then this cyberspace reality that they seek to give predictions to. It will be a special problem to the Keynesian to try to cover himself up behind assumptions all the time, so what he has said, is logic, when all assumptions have been remembered. If these logical relations, scholastic rides tell anything about the effects of different political economic actions from the authorities towards some correctly described phenomena in the society do not in principle interest the Keynesian. Here he has secured his retreat. It is a very central part of the Keynesian learning to train this. I have trained myself until I could not take more lies. My upbringing simply forbad me to continue the lies.

Therefore I must say: Do not listen to the Keynesian, he will coax you to do, what he believe in, and if you do not understand, what he is telling you, he will explain to you at last by referring to your lack of education (scholastic).

Precicely the same method that what used about 100 years before when you was explain why the gold standard what mattered

I have to inform you that the Danish Joergen Pedersen, who became a Rockefeller Fellow, perhaps could have won the Nobel Prize instead of John M. Keynes. Pedersen was not very known in the Swedish Academy, and many of his earlier writings were not written in English. The practical rediscovery:

From 1994 they are talking about paying back the national debt in Denmark. But nothing of the kind happens, the debt still rises every year until recently (2006). If the national debt was beginning to be paid back the unemployment would increase, the keynesians would tell you. The unemployment in Denmark is between 500,000 and 700,000 or 17-24 p.c. of the laborforce in 1999. I have tried to give an total presentation of the unemployment-accounts-problems on: http://www.lilliput-information.com/led/index.html (in Danish).

Pupils who always work and always talk, tell you that the unemployment in Denmark is less than 150,000. That is the figure when you when you concentrate on the unemployed members of unemployment security system. The expelled ones do not exist. They did not in the Soviet Union and DDR either.

In 1933 the unemployment was 33 p.c. (the highest ever in Denmark) of the labor force (accounted in 1933). In September 1939 (when the World War II broke out) the unemployment increased 16,000, even if 20,000-30,000 were called to the military forces. In the years before unemployment had been reduced by public occupational work (‘New economics’, ‘Recovery’ or ‘New Deal’ made in USA), by exporting more to Germany, which were preparing for war, and by national debt, that means transforming more and more real capital to private capital.

At this time the unemployment were especially reduced by the Keynesian so-called ‘kickstarting’ operations. That the money was destroyed in this way did nearly nobody discover, because the war also made a new international monetary system that was based entirely on credit economy alone and and paper that is the same.

That the effect of this blind using of the theories of Keynes led to a public sector ruled by bureaucratic principles, a public sector that was a good deal larger than the things ruled by private, individual dispositions, and a colossal national debt ought to have been foreseen, but the theories did very convenient not tell this, the theories that were followed blind for 70 years. The dictatorship based on the nonsense writings by Karl Marx also lasted for 70 years. Nothing has been left to uncertainty if you look in right direction.

How should an unskilled individual know what to do? That is the reason why I got the right to vote.

A little accuracy about the between war period:

John Galbraight still maintains the German economy recovered from 1933 by civil production, and he intend to let us believe that the German method was a kind of the so-called new economics. He seems to want us to forget a lot. In 1932 4.1 mill. Germans were unemployed. Two years later the number had been reduced to 2,4 mill. In 1998 (the election year) the unemployment in Germany with nearly the same population as in 1933 was officially 4,3 mill. The SPD-politicians just before the election to the Bundestag maintained that this number was not correct. The real or the true number was about 10 mill. (the same four years later at the next election 2002). In the late 1920s and the beginning of the 1930s the motorization came as a gift from the technical knowledge, the arming had been started, and productions and development of arms had long been going on in cooperation with the Soviet Union (unofficially). A restrictive control of the currency, tax discount tickets, and especially the suspension of the trade union wage rates was the axis of the German recovery policy from 1933.

Debt, inflation, deflation and mass unemployment caused by the concentration of power and ignorance, as uninformed citizens to reign of. Business owners can be greedy, just as trade unions, but national debt, inflation, deflation and mass unemployment they are not able to do, if not the governments and their officials played with, those who prudently are living on these instruments.
Then comes the collapse:

It happens mostly once in an average lifetime (so there is not many opportunities to get used to it) and it becomes very worse this time. This is because fundamentally human attributes when the underlying morals and ethics go from the top of the flute and down, mind you.

Professor L. V. Birck wrote in 1922:

“We live in a world where ‘state machine’ we in fact would sit to have weakened in its foundation. It is hated by the rich and barely tolerated by the poor. In Germany and Austria are the holders of the economic power of organized society capital is thought to to destroy the so-called parliamentary democracy and the population influenced government to take power themselves. In the United States is the conflict between the political and economic temporary deferred because the political power at the last presidential election has declined in hands of a political oligarchy (my: oligarchy oligarchy means). Everywhere we find evidence of state powerlessness and the possibility that
establish the power outside the law and without oligarchy seem very distant for moment “(I quote from:” Denmark and the World Crisis “).

Professor L.V. Birck also wrote of a lifetime ago:

“Citizenship was shortsighted, it would not save the system, even sitting in, getting the amount of paper out of the world, which threatened to strangle the economic system, which involves citizenship. ”
The same is happening today in a even wilder scale. What happens when government intervenes?
Nothing new under the sun.

Fraud, but not from speculators alone.
Can it be arranged so that speculation does not pay off? (English version)

Sonia

Supplement:
http://www.lilliput-information.com/economics/tida.html
http://www.lilliput-information.com/economics/gol2/gol2.html

Economics: The Brief Truth Primo 2010

The industrial production is continual decreasing, lately with a slightly lower slope, and the same is happening distinctly with the world trade in 2008, 2009 and 2010. Protectionism is very tempting to reach for, and the omnipresent cult of environment and climate freeze more than it loosen for the new perspectives including the reorganization to the international competition in the Western hemisphere.

In addition all these initiatives started to end up in the financial crisis, subprime loans and more debt, grants, easy money and easy credits, negative interests continues unaffected. Debt and insecured liabilities and continuous official expectations about higher taxes underline what certainly does not have to be done. The last-mentioned is in force in USA, Europa and Japan, Japan with 20 years recession and old- perhaps neo-keynesian errors of judgements has ended in deflation. It is not much better in Europe. No, nothing point to the right direction as matters look like right now in the beginning of 2010, regardless the share prices shortly showed small local increases over time in the beginning of 2010.

40-50 years of excesses and more than 10 years of loose monetary policy with consumption-economics and hot air bubbles first in market of shares then in market of properties are not nullified in a couple of years. The Keynesian or if you wish the Neo-keynesian treatment is still in front at the mainland of Europe:’The more the households consume the poorer they become, the more the states consume the richer we all become’. With a South- and Eastern Europe put away to Jericho under the regime of Euro, the defending rises of interest from EU, trade obstacles and other kinds of protectionism (the capital flow east- and westwards, and the inflation threatens Germany and France), starts a downward spiral leading to a collapse combined already with deflation in the one half of Europa and an dawning inflation in the other (including France and Germany).The alternative is even more issued means of money, bigger consumption, higher taxes, zero interest and more debt upon the mountain of debt, and this make everything even worse: ‘The patient should not have more of the drug that already made him ill’.The last relates naturally to the fact that some of laws of economics are almost natural laws.The ruling and media have completely missed this, because they believed on and in this world and in unresponsible of the agenda.

The gold price approaches $1200 per oz. from a price of $250 in 2005. And the gold market is not like any other bubbling market as those of shares and property, as we had to hear from the media, and not even just the breeding ground of the speculators. If this price rise of gold continues stronger inflation must follow, and the collapse we have seen until now is then just the summit. The problem is that insecurity at both the market of real production and at the market of currencies almost forces the investors to go for gold, provided the means must be easily and quickly to realized.

Remember, when the retarded dolls in the media report their advises of investment, always to do precisely the opposite. Everything has an end, and the latecomers are the majority, they are the ones to pay for the game always. Do you remember the bubble of share market created by sailable paper and of course false or no real expectations, almost in the style of Bernie Madoff. Once in August 2001 you could read in the papers: ‘Let the children, indeed’. They were invited to invest the savings in the share market. ‘Everything went so well, and we became and shall become very rich’. And it was a lie. ‘More speculation, please’ was the title of an article in Berlingske Tidende. Apart from the title the article contained just empty nonsense, it was without any useful information.

I suppose a majority at the summit expect the problems with a new and for a long time needed international monetary system solved by imposing some kind gold standard. But this has never been the solution to the selfmade problems, and a continuous rising gold price will show, where we really stand when it comes to inflation, unemployment and state debt, but the gold standard is just meaningful in an extremely expanding world economy, as under the birth of Industrialism, and it will make everything worse today, when it is artificial draged out of its historical context, because lots of people cannot look at two phenomenons occuring at the same without to imagine a connection of reason between the two.

A real globalization of all markets naturally demands a new globalized international monetary system. The leaders of the world have to agree upon not ever in the future to be able to choose the easy way out, and at the same time impose a substantial limit the possibilities of speculation that truthfully are pure by-products of those professional-politicians-choises of the easy-money-way out.

14 January,  M. Sc. (Economics) J. E. Vig

We may experience a change – perhaps better times after all

 

We may experience a change – perhaps better times after all

A war of terror is perhaps too difficult to bring to an end without too many limitations and lost of citizens rights.

Right now the sheep are being separated from the goats. The split of Jew haters and Jews supporters may be the first step. When it has been going on for some time the violence will increase. The split we experience will of necessity naturally spread to the whole of Europe.

This must lead to split of EU on the real or the concrete level, no longer on an ideologic phrases and general camp following including new-Mercantilism and Eurabia.

Ideology gathers, but reality spread.

Earlier we actually have heard tiny peeps about an Europe with much less USA-involvement or without speculators’ involvement from the unknowing-parrots who have not understood that especially such a system has basicly been made by themselves.

They and their predecessors have even done the same time after time, but most of them are historyless and just blinded by their own power positions or ideologic dreams about an abstract future, yes, then they don’t expect the big pendulum of history that always returns, because it is the same people, the same human characters that  make the mess every time. In addition they even have abolished the human characters via Etic Order, and created a new man to consolidate their power or secure themselves.

Ideology, Etics and Politics had to be melted together, two generations at the summit claimed, because they got their will by using their brains without wisdom.

Perhaps it shall give the necessary result that will show itselves if it does: war of terror and treachery may perhaps be turned to a frontier war, where the enemies know each other and respectively their real alliances.

This war can then be won.

J. E. Vig, Denmark

The Collapse is Coming

It happens almost just once in a lifetime, so the possibilities to experience are few. It will be even worse this time. The collapse is caused fundamentally by the human characteristics, when the morales and ethics disappear from the top to bottom.

 

Professor L. v. Birck wrote 1922:

 “We live in a world, where the ‘machine of state’ that really should lean us selves against, is weakened in its foundation. It is hated by the rich an just tolerated by the poor. In Germany and Austria the holders of the economic power of society the organized capital that is considered to destroy the parliamentarian so-called democracy and the state influenced by the people to take the power itself. In United States is the conflict between the political and the economic postponed for the time being, as the political power by the latest presidential election has fallen in to the hand of an oligarchy (a rule of the few). Everywhere you find the sign of the powerless stat, and the possibility to establish the power outside the state and without oligarchy seems far away for the moment.” (quotation from ‘Denmark and World Crisis’)

 

Professor L. V. Birck also wrote a lifetime ago:

“The middle classes was short-sighted, it would not save the system they were place in themselves and get rid of all these amounts of paper that threatened the economic system that support the middle classes.

 

Does history repeat in some version when you are not allowd to learn from it?

The same happening today in much wilder speed

 

How inflation and speculation become possible, and how they are accelerated:

The private limited company was not really widespread until the 1800s. Also the bank houses of the Absolute Monarchy (which ruled in most states) were businesses owned by one man or by partners. The private limited companies are introduced en mass in the 1800s. Thereby you have to distinguish between physical and juridical persons, and at the same time distinguish between the responsibility of a physical person and a juridical subject. It was not my task to analyze the laws of private limited companies in different countries, but to show how the clear advantages of the private limited company turn to disaster for the society under the industrialism and the so-called democracies from the mid 1800s. All laws concerning the private limited company in the different countries are partly different, but a lot of the substance, of the rights and the responsibilities are rather common. Definitely common to such a degree that a rough outline will be described here:

 

The theory or principles of the private limited company: 

A juridical subject with its characteristics and rights. The private limited company gets a private life that has to be protected. Here the deciding is its position as owner of a business, its protection, and its free access to profit. The company owns some real goods, factories, land and products. The share holders are directly related to those goods, because they look upon themselves as members of a co-operative society, and because the business of the company was not bigger or more distant than they were able to keep the information up to date. The stocks and shares and share certificates were pieces of evidence for a certain share of the real goods of which revenue and profit were made. The participants of the circle of share-holders share interest of certain common aims. That is the reason why they join their efforts, and because each of the share-holder is not economic strong enough. They appoint some  participants – the biggest share-holders – to form a board of directors that appoints a director/a president, sometimes among the members of board of directors. In this way the board becomes some kind of a deputy for the shareholders; the board has some duties to the shareholders. It is not without some functions, but its whole existence is caused by the private company. The shareholders are in a way a kind of managers who are acting via delegation, but they feel and certainly have a responsibility, even outside economics.

 

The interest of the shareholders are certainly not profit due to appreciation, and he even feels some kind of moral responsibility that his goods must work in a honest pro-duction, not even the profit of the year is of his primery interest. The share-holders’ relation to the company are lasting, they do not sell the shares, the price of the share is just of interest in connection with inheritance or if misfortunes forces him to sell, and share is often solid fixed for life. The legislation concerning the private limited company was introduced several decades after the private limited company had become wide-spread, and describes the private limited company just as I did here. The task for the legislation then is to regulate the relations between the share-holders, to protect the minority and secure that the capital of share-holders is present considering the credi- tors. Gradually a breach of confidence from the board of directors from the management appears, and legislation then set up some common rules on documents of general meeting, on the authority of the company, and on some duties of the board, often expressed very vague.  

 The reality of the private limited company:

Reality does not correspond to this idyll. Life has denied the thought that the private limited companies are just another kind of tradesmen. It has become a social organi-zation, created for the advancement of some productive tasks. It is like a municipality, it has a long duration, longer than the life of an individual, independent of the share-holders, the board of directors, the management, the labour. It is an expression of a wanted co-operation. It is something in itself, and it gets itself means, management and labour. The most obvious differences between the municipality and the private limited company is the way the organization is managed, its protected acces to profit, and in the advantages of whom it is working. The tasks are often different, but they don’t have to be. The company is not working primary to satisfy neither the shareholders’ need of profit nor the need of the board of directors to get higher salaries.

A company does not have a private life or soul, nobody that can go to prison and no reputation that can be sullied. In principle it is irresponsible and amoral, because it is just an idea when all is said and done. The tangible is its capital – that is limited and divided – but have to be present.

The share-holder has stopped being a manager, the intense connection between him and the company and his pointing out of his friends and good connections to the board of director has come to and end. He gives nothing to the company but the amount of capital represented by the share. Often he has not bought the share by subscription but from another share-holder. He has been reduced to be a lender, he is almost on the same footing as the owner of a bond.

 

This is underlined by the divided shares in different categories, preference-shares with cumulative interest, and ordinary shares with varying interest, and we have the share-bond, and the preference-bond which is a transition to bonds. We also have the deferred sharethat does not yield profit from the moment it is issued. Some improvements have to take place, for example in the organization of sales or in the degree of monopol before profit is received. In 1926 France and Belgium consolidated the loose debt in form of state-bonds that supplemented the fixed interest with a share in the profit from state-railroads and state-monopolies. The company’s capital originated from loans, and in this way the primary difference between the share and bond disappeared.

The share is a borrow evidence with a varying interest and second-rate security and second-rate legal position, while the bond has a fixed interest or yield, but first-rate security and first-class legal position. Often the bond-capital represent the real values. The preference-shares often represent the most likely profit-possibility and the ordinary share the hopes. By this the share has stopped being a real evidence of some shares in certain real goods. It has become a letter of right to varying profit, which value has to be dependent of the amount of profit, its duration and security compared with the general rate of interest. In this way the varying price of the share is getting the primary interest, and speculations in the changing price is becoming the deciding foundation for the owner.

And remember that the right to vote at the general meeting has also been split-up following the splitting-up of the capital. The share has then been detached from its basic, the real goods of fortune that produces and at the same time (but in reality pretty independent of this) also yields profit. It dismantles further, and the “hot air-process” follows.

You will understand that the share-holder to a high degree has been separated from the business, from where he gets his profit. The example from the French railroads was just an illustration. There are numerous ways.

The worst happens when the public creates private limited companies or join those, and steal the majority with new-printed notes. Notice, some convincing justifications have always been carefully chosen in advance.

Anyway the holder of the ordinary shares will have difficulties to judge anything, and as a difference of a few percents in the company can lead to a doubling of the profit for the ordinary share-holder or totally disappear, and as the board of directors and the management know the total profit long before the share-holders, the last mentioned has actually been separated from the company.

But when the company – inspired by all the new capital as we shall explain below – that has to make an effort to yield interest, to make things effective (or monopolize) make business-fusions vertically and horizontally, then the trust (and the public control or lack of the same) has been really introduced to control what will happens then? Now the share-holder is just a lender, whos position is unbelievable weak.

The share has now character of the paper of gambling. The share-holder cannot monitor the distant company that really produces: “I, who own a share in a London finance-company that owns shares in South American diamond-trusts that owns shares in individual mines” has no means to know anything of the production and prospects. I have to buy after haven listen to rumours, and I sell I panic. I have no human interest together with real producing units in the company. Everything is unknown. You listen in City that they expect a certain profit next year, I have no interest in honest work anymore. The share has become a lottery ticket.

But the share is not even owned by somebody. Through margin-payments you can “own” a share by paying one tenth of the price, perhaps less. The stockbroker or lombarding bank is in reality the owner. What is turned over is just the one tenth I paid. In this way the interest in the business is reduced further and my interest in the price of the share overwhelming strong. The trade-off between the interest, price-differences and the lending interest rate in the bank is what concerns me now.

The share-holder has stopped being a share-holder in the original sense. He has nothing to do in production. The non-speculating holder of share certificates, who owns and has paid his share entirely and has the share for years, has gone.

If you look at the administration of the company, you find share-holders at the general meeting who are entirely unprepared, and know nothing. The accounts are at best opaque, and often uncorrect. The share-holders are simpletons as lambs and are under normal conditions forced to be meek as such, because they know that critics of the management of company are going to press the price on their own shares. The share-holders therefore are incompetent to give their votes with any sound reason. But most of the votes given at the general meeting are not those of the non-speculators. The shares have been used to borrow money, and the right to vote has been transferred to the bank, or a group of finances by means borrowed in a bank which take possession of the majority of shares by the famous ten percent payment, or the board of directors take the power by buying the majority of shares in the days before the general meeting. The board of directors whos interests are not those of the company, and its actions are dictated by objectives that do not concern the running of the company and a reasonable management. The management is not a crowd of non-speculating representatives of shareholders. It has been elected by a group of power that certainly do not own the capital, but it has been able to pay just the tiny bit of the price of shares in majority. Often the financing bank – that has financed the majority – points out the management of company. Often the capital is simply owned by savers in the financing bank, without they know it and can have their legal right. The group of finances is certainly not the old type of share-holders and does certainly not represent those. They are professionals with means not owned by themselves, they act as irrelevant self-licenced masters of industry and are possessors of the community’s capital. The management that is not dependent of the board of directors leads to the fact that the management cannot act in the interests of the company in the long run. It has taken what the bank or financing group wanted, and seldom it is in the interest of the company.

Source: http://www.lilliput-information.com/gol2/gol2.html

http://www.lilliput-information.com/tida.html

History: http://www.lilliput-information.com/truth/app3.html

Might it be prevented better in the future after the war: http://www.lilliput-information.com/intmo.html

 

J. E. Vig

 

Europe has to choose to prevent a war

Who are able to choose between two bad things:

1. A tighter rule of Western values as we have had them for more 1000 years until we get a most needed new international monetary system that we have been without since 1971 to secure we stick to them – the values.

2. Eurabia

We don’t hate neither Americans nor Jews. We love them because their way of life is compatible with ours.

Joern, Denmark
http://danmark.wordpress.com/category/english-versions/

http://danmark.wordpress.com/2006/05/19/new-monetary-system/

Europe On Its Way To Dark Ages

Europe shall be darkened –

the political leaders have sold their souls to the oil producing Arabic countries

(new updated version from the original of 5. Mars 2006)

Europe and Islam now and in the future according to numbers

Norway has made its official population forecast 2006 – still without any most needed correction. There is no correction in Sweden and Germany either. The be able to quantified the problem is the basic for any debate. So we hear about numbers that are declining all the time – but it’s a lie. In Denmark you read in Jyllands-Posten 9. August 2005 that the number of foreign citizens begun substantially to decrease from second quarter 2005. All in all we ended up with an official fall in the number of foreign citizens even though the rise of number in a politically incorrect analysis was (numerically) more than three times larger. When you look at the number of foreign citizens in the official accounts, the number of naturalized has been subtracted year after year. So if the number of naturalized exceeds the number of immigrants in a given year, it looks as if the number of foreign citizens has declined and the influx has turn to outflow. This phenomenon has been continuing for years. In Denmark we made a correction and got a politically incorrect but more accurate account.

Perhaps the simple truth after all is too complicated for reporters:

“The camouflage from the number of naturalizations by law just exceeded the number of new immigrants”

The demographic development In Norway : http://www.honestthinking.org/no/pub/HT.2005.05.15.OJA.Bakgrunnsinformasjon_for_artikkel_om_SSB.html (in Norwegian)

The future population of Norway :
http://www.aftenposten.no/meninger/kronikker/article1209423.ece
http://www.meforum.org/article/337 (in Norwegian)

Sweden has Islamic majority about 2050: Report on researcher Jan Lindh’s results: http://danmark.wordpress.com/2006/06/20/svensk-forskerne-svenskerne-i-mindretal/ (in Danish)

A crescent over Europe?
http://www.afa.org/magazine/July2005/0705europe.asp

On the German blog Politically Incorrect run by Stefan Herre we read this entry on the theme: “The Number of Muslims in Germany” with an answer from the Mideast expert and economist Hans-Peter Raddatz: http://www.pi-news.org/2007/10/stefan-herre-about-the-islamization-of-germany/

Europe and Islam: Crescent Waxing, Cultures Clashing: http://www.twq.com/04summer/docs/04summer_savage.pdf

Islam in France: The French Way of Life Is in Danger :

http://www.meforum.org/article/337

From Holland we get positive comments on : http://ayaanhirsiali.web-log.nl/ayaanhirsiali/2008/02/newspapers-repu.html and http://nekklachten.web-log.nl (in Dutch, German or English)

Denmark got the possibility to correct the false numbers of immigrants and their descendants:

In 2006 the number of naturalizations by law for 26 year divided on former citizenship suddenly was published by Danmark’s Statistics.

That lead to correction that shows the official number of most foreign immigrants had to risen by 106 p.c. to reach a politically incorrect but more accurate number.

http://www.lilliput-information.com/uscan.html (English version) and

http://www.lilliput-information.com/eumork.html (older Danish version)

A beginning critical activity seems to take place in Norway I have to say. Norway and Holland are respectively about 10 years behind and 15-20 years ahead of the wrong immigration-development in Denmark. I.e. we will see a majority of Muslims here about 2035-2040, in Norway in about 2050, but in Holland (with a corrected number of about foreigner-percentage in 25-28) they will get the Islamic majority in 2025-2030. There has definitely been a war long before this happens, perhaps a war that will prevent the development to escalate further towards a multietnic chaos, who knows? The war is being orchestrated from Bosnia and Morocco and from within the EU-countries. You don’t believe? See the video: http://www.sky.com/skynews/video/videoplayer/0,,91134-bosnia_p3705,00.html

All European governments continue steadily and calm with the great extention/expansion of a European co-operation to the west and to the south and with promising final inclosure into the Lisbon-Treaty (a camouflaged European constitution), where they perhaps should re-arrange the trade and contacts instead taught by the latest experiences. This co-operation is about “exchange of workforce, education and culture (and immigration)” and surely on money from EU paid to the development-restricted areas in 10 countries south of the Mediterranean. Most likely we should expect our governments to do nothing to prevent or delay of anything in the connection. In addition the Euro is being held floating by Arabic Oil and self-strengthened continuous interest-rate rises caused by the Euro-construction itself. Any kind of support from our busy leaders most likely have to be regarded as non-existing, seen from this point. The Arabic oil countries unfortunately have them very much in their pocket so to say, so much that they will do nothing at best to open up their antiquated systems of education and of the general business-structures under the accelerating international competition. In addition Euro is floating in oil as a payment from the other side with immigrants in return from Middle East and Africa. For details and background:

http://www.lilliput-information.com/curint.htm

http://danmark.wordpress.com/2007/11/20/dollar-is-definitely-not-quite-passe-english-version/

 

To get out of this dilemma is more than difficult:

A series of interest-rate increases simply presses the rate of exchange further up in a Europe with close to zero real growth, and it worsen the conditions further, precise as we described it just before the first referendum on Euro in Denmark. Now they have not even prevented to make inflation again (in Denmark, 13.4 p.c. the latest year) in order just to use this as a false argument for a second referendum on Euro about 2009-2010, when it has went wrong. The interest-rate increases slows down the activity even more on Mainland, and even though the politically incorrect unemployment in reality is close to 20 p.c. of the those who could go to work. The natural rules of capital formation seems to have been forgotten in an indebted Europe. European population and European workforce: http://www.lilliput-information.com/engeufolk.html and http://www.lilliput-information.com/engeuarb.html

Here you could have imagined perhaps a re-arrangement of the trade with most terror-fixated areas of the world assumed that we got our energy-trade directed into safety. Europe could replace the deliveries we get from countries that are expected more and more to use a terroristic policy of trade against the West in the nearest future. In reality Denmark has been self-sufficient with energy resources for the last 20 years. The other alternative was chosen by the leaders: They sold Europe to the men of the hour.

That is the background and the reason why we have to collect and possibly create power of resistance right now. If we don’t succeed the European peoples will not get the needed support in upcoming fight and war that surely will come as sure as the Amen in church. And this war is coming much sooner than the majority expect. Without civil resistance we have lost beforehand. It is 2 minutes to twelve.

If your heart is filled use your brain

Joern E. Vig, M. Sc. (Economics), Denmark

http://www.lilliput-information.com

http://lilliput-information.blogspot.com

http://Danmark.Wordpress.com

Liberal Fascism or Internationalism that Ends in The Same

Decline and Fall: Europe’s Slow Motion Suicide

by Bruce S. Thornton

“The Totalitarian Temptation from Hegel to Whole Foods…

The incoherence of our political discourse results in part from sheer ignorance of political philosophy and its history. Abetted by a superficial media, we trade in sound-bite labels and epithets, free-floating signifiers that communicate not ideas but feelings or prejudices––“conservative,” “liberal,” “progressive,” and of course “fascist” are all terms that seldom have any accurate meaning. This sloppiness makes it more difficult to conduct the political debate where it should be: at the level of fundamental assumptions about human nature, the proper role of government, and the goods suitable for the state to pursue…”

—–

As we see it ism is the one that make a teoretical Europe and a teoretical European, but at least the European is an absolute. You could also call it an ideologic construction. Experience show they all have the same ends.

Daniel Pipes’ outstanding contribution to explain the concept Liberal Fascism

Suppplement: Union There and Return – dansk udgave

Sonia

Drawing illustrates the way back to reality from tax financed welfare – without a war

Back to reality

Most of the European welfare systems are to a very high degree built on tax-payments and public expenditures distributed over the lifetime –the Danish almost entirely. That’s the reason why they were heading for ruin from beginning in 1970s. In Denmark the non-Western immigrants cost the society, in the end the businesses 2.5 mio. ddk a individual in average a lifetime, the Danes cost 750,000 ddk in average (the difference is a factor 3.3). These calculations originate directly from the Danish official Welfare Commission that was reported in the newspaper Boersen 1 December 2005.

Let the green oval illustrate the Danish public sector, and the blue the private, free trading sector in the drawing below.

As matters stand in Denmark it is impossible to force the development from the upper to lower structural relation of sector sizes, because the public sector drains the possibilities of private sector too much to make innovation and expansion along with all the other costs. If we continues to demand a public sector of size almost as at present in the long, there has to be a temporary reduction of the public sector.

There are no other possibilities and the international competition forces us to act today instead of tomorrow or we shall loose every public impact.

The red arrow indicates the impossible choise or the ideological way. The black arrow shows the possible way. There is no other way. If the structures are not changed very soon in the two biggest European nations on the European mainland, and even if international competition combined with the steadily increasing problem of financing welfare made by the increasing share of pensioners and at the same time the decreasing accession to the labour force plus the self-created miss of a solution to the problem with missing European fertility substituted by Middle East fertility and immigration – with the results illustrated in the calculation on Danish relations in the first part – Europe will go bankruptcy again or become an Arab caliphate. ‘Eurabia’ is just an ideological construction with a unwanted distance to reality enjoyed for a short time by the European Elite.

Until now they have chosen to lie about matters and surrender to Arabic oil countries and/or face another war. The more years the solution is postponed the bigger the collapse. It is pure mathematic.

Jens

Strategic Patterns – Sources of Threats, Future, Adjustment, Impacts

The European Elite has aimed for a systematic strategy to get the national states dismantled and replaced by an ideological project. The ethnic Europeans are becoming more and more sceptical, but that definitely does not prevent the train in moving on towards Neurope, and Eurabia as long as the oiltrade secures the Euro-consuming European Elite.The ethnic Europeans are simply ignored in all matters concerning them most dearly a lot of investigations show. I addition what concerns the semi-secret alliance-efforts towards the Arabic world the strategic components seen from here are the mentions ones in the links below.

To draw an almost realistic picture of the future in Denmark and in Europe, you have to make some assumptions concerning among other things characterizing patterns that remain unchanged or that are expected to develop along some fairly known directions according to experience. And the expected reactions to this development must also be included if possible.

You may choose between lots of relations that are the building bricks in this model of patterns. Of course this reading is just a sketch, but on the other hand I have chosen building bricks that have been pretty good described until now. If other patterns would be more valid, or easier to forecast or predict something on I will let the reader judges and eventually contibute to:

[You can choose as you like between the strategic patterns/issues that you want to know more about. You open a new window with the contents of each link. When you have finished a link you just close the window again and perhaps you open another via another the link and read what you need to know]

The Mass-immigration-project of ideology fueled from chiefly Muslim dominated areas or Free Muslims Immigration To Europe or The number of muslims or perhaps The distance between official and the real number in Denmark or

Welfare will collapse

The building of the state of Europe with constitution,

Commpulsory currency of unit, and an army as a substitute for those of the nations’

The attack on the economic and financial sovereignity via borrowing according to deliberately misunderstood Keynes-surplus-supply-politics or

Adjustment to the intergration of power including the attack on the menthal condition of individuals amongs strong, active Peoples

The patterns, perhaps these instead, If we will know the dimension of the problem

the threats,

the future,

a supplement or

future in pictures

The final important strategic field that is distintly dominating the development and that the originators/the decisionmakers try to effect where they wisely should adapt instead (as they can do nothing) is a strongly increasing international competition that has been made possible thanks to the technogical developments that I hope everybody should be allowed to enjoy, if they want to. This development might remove the foundation as we have known it for about the last hundred years. But never mind, that has happened lots of times earlier.

My single and only claim: Without Ideology!

J. E. Vig, Danmark, 18 November 2007

Complement: http://danmark.wordpress.com/2007/06/28/eus-southern-drive-is-the-impossible-alternative-ideology/

What we stand for may differ considerably from the mainstream delivery of so-called information

A few have asked what we stand for

As anti-puppets or perhaps dissidents in a most threatened Europe, here it is:

My aim is to inform facts. I don’t deliver anything I believe in or that I just think of as interesting. Hope you notice my documentation and my objective argumentation. As I see it the immigration-project concerning the establishment of a New Mercantile European state based on oil-trade and immigration to Europe to replace the nations is the most servere problem to warn of. My nation Denmark is about 1000 years old, and I don’t accept that one or two generations shall succed with dissolving it for their own private purpose or any ideological brain-spin .

Those were the words you could have found it by looking a bit for it.

I will add: arrogant ignorance we cannot bear

Euro-Mediterranean Investment Summit 2005

Palais de Pharo January 13th- 14

th 2005,Marseille, France

“The Europe-Mediterranean region is one of expanding opportunity. With 720m inhabitants (including the whole of the EU), EuroMed could become a common market by 2012. Such a large market—bigger by far than China—is one that businesses and investors must reckon with. The Euro-Mediterranean Investment Summit 2005, supported by our public and private partners*, brings together global politicians, investors and executives all keen to develop economic links between the prosperous north shore and a southern shore associated with a certain amount of risk, yet full of promise and opportunity. Since Malta and Cyprus joined the EU, the MEDA region is defined as the ten Southern Mediterranean and Middle East trading partners of the EU: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestinian Authority, Syria, Tunisia and Turkey…”

Talerne er listet med portrætfotos på kilden: http://www.insme.org/documenti/Euro-Meditarranean%20Investment%20Summit%202005.pdf

Distinguished Guests:

Jean-Claude Gaudin – Mayor of Marseille, Vice President of the Senate, France

Mohammad Abu Hammour – Minister of Finance, The Hashemite Kingdom of Jordan

Yiorgos Lillikas – Minister of Commerce, Industry, and Tourism, Cyprus

Mahmoud Mohieldin – Minister of Investment, Arab Republic of Egypt

Renaud Muselier – Secretary of State for Foreign Affairs, Ministry of Foreign Affairs, France

Fathallah Oualalou – Minster of Finance and Privatization, Kingdom of Morocco

Cherif Rahmani – Minister of Environment and Land Development, Republic of Algeria

Kürçad Tüzmen – State Minister, foreign trade and customs, Republic of Turkey

Michel Vauzelle – President, Provence-Alpes-Côte d’Azur Region (PACA), France

Case studies from Investors:

Emre Berkin – Chairman Middle East and Africa, MicrosoftPhilippe Cornet

– Director, Northern Africa and French-speaking Africa Region, Renault

Jean-Michel Dhenain – Delegated General Manager, Sodexho Alliance

In charge of development in the MEDA countries; world leader in services to collectivities

Michael Geiger – Managing Director, Shamrock International Ltd.

Director of CMT Medical Technologies, Isreal; Private investment arm of the Roy E. Disney family

Gürcan Karakaç – General Manager, Bosch Sanayi ve Ticaret A.Ç.

Runs Bosch’s Turkish operation specialising in automotive systems, household appliances, high-tech products

Philippe Ley – Financial Director, Haribo

Involved in construction of new sweets factory in Turkey

Julien Renaud Perret – Director of Development and Patrimony, Club Med

Involved in set-up of 3-Trident villages in El Gouna, Egypt, and Coral Beach, Israel

Ali Aoun – Chief Executive Officer, Saïdal

Runs one of Algeria’s leading pharmaceutical groups

Pierre Becker – President, Geocean

Involved in exploration and production of fresh water fields from marine springs in the Middle East

Brahim Benabdeslem – General Manager, Management Development International (MDI)

Heads up institute focused on training Algerian managers and executives

Sara Bertin – Vice President, Senior Analyst, Moody’s

Expert in country risk ratings in the MEDA region

Josep-Andreu Casanovas Pla – Director, Tourism Division, Tea-Cegos

Advises companies expanding in the tourism industry

Turgay Durak – General Manager, Ford Otosan

President of the Association of Automobile Manufacturers (OSD), Turkey

Yahya El Mir – Chairman of the Board, Groupe SQLI

Runs group specialized in e-Business, systems integration and consulting; agency in Morocco

Charles Legrand – Regional Head, Middle East and Sub-Indian Continent, SWIFT

Kamal Nasrollah – of Counsel, august & debouzy avocats

Expert in mergers and acquisitions, France-Morocco

Dominique Nouvellet – Founder and Chief Executive Officer, Siparex Group

Founder of group specialising in later-stage financing and corporate finance services for SMCs

Iskender Odabasoglu – Director, Construction and Foreign Investments, Kombassan Group

Conducts country studies and establishes joint ventures in countries in Persian Gulf area; based in Turkey

Joseph Perez – President, Société Marseillaise de Crédit, Member of HSBC Group

Involved in the management of operations in Northern Africa

Christian Pierret – Partner, august & debouzy avocats

Previously held position of delegated Minister of Commerce and Industry, France

Christian Rey – Director, Marseille Innovation

Specialist in the creation and development of technoparcs in the Mediterranean region

Pascal Roger – International Director, Groupe Suez

Involved in management of the Middle East and Africa regions

Mario Rotllant – Chief Executive Officer, Cobega

Significant investment in three bottling plants in Morocco

Experts on the MEDA Region:

David Butter – Editor, Chief Energy Analyst , Economist Intelligence Unit (EIU)

 

On: http://tundratabloid.blogspot.com/2007/10/counterjihad-conference-in-brussels_31.html

you read of yet another repetiton of history:

“Worst, the Nazi evils came back with a vengeance in the Euro-Arab alliance so similar to the Vichy-Berlin-Arab and Palestinian Nazi and Fascist axis…”

Vichy-Berlin-Arab and Palestinian Nazi and Fascist axis??

Sonia