Britain celebrates Cameron’s glorious victory, 26:1, 26 losers and 1 winner.
Let’s take a brief look at the path to this victory.
Thatcher had a clear and firm position:
We are not European, we are British and see no point in joining a talking shop.
It cannot be more than a talking shop as we’ll throw spanners in the works of everything leading to binding agreements.
But if you want us to join anyway you have to pay, and naturally we get the right to opt out of everything.
Europe wanted Britain and Europe paid. Britain got a 60% reduction off its dues and opted out of everything that was relevant regards further integration, the whole point of creating the EU.
Europe made these concessions in the hope that there will be a government with a different attitude sometime in the foreseeable future.
For almost four decades the British public told the press what they wanted to read and the press obliged. Thatcher and all following administrations understood the British public, Europeans did not.
Even before Cameron moved into No.10 did he remove his MEPs from the conservative faction of the European parliament and joined a group of right wing extremists from Eastern Europe that nobody in his right mind wants to be associated with as their declared aim is to destroy Europe.
He could not have insulted Merkel, Sarkozy, and all the conservatives in Europe more than he did. This action was a clear statement saying “I am out of Europe”.
Last week the 26 agreed to creating a fiscal and political union, Europe 2. There was nothing to negotiate, it was a matter of either in or out. Europe 2 should have happened long time ago, it is an essential consequence of having a mutual currency.
Europe 2 was negotiated by the 26 in the run up to the summit. Everybody knew that Britain was out but the British public. As Merkel stated “Cameron was never at the table”.
Cameron’s appearance was nothing more but a publicity stunt for the benefit of Britain.
Hailed as the man who saved Britain he now commands the opinion polls and will become reelected with a landslide majority.
Today Britain is one of the top ten industrial nations. The steel industry employs some twenty thousand people, so owned by Indian, Spanish and other conglomerates.
The steel works in Port Talbot, Wales, for example, export 80% to Europe. All contracts are done exclusively in Euros. The British public may not have the Euro but British industry has.
Assume the Pound gets pushed up in relation to the Euro. These steel works will receive less Pounds – production will be no longer feasable and the jobs will be lost.
The same applies to any other industry. About 40% of British exports go to Europe.
Assume the Pound falls. Exports will become more profitable and jobs are safe. Imported goods become dearer and inflation spirals upwards, so the consumer looses out unless wages go up at the same rate.
History shows that wages are always behind prices, then they overtake prices – cause production costs to become uncompetitive and jobs are lost as a result. This kind of instability is avoided by having a common currency.
British politics never bothered with stability, it was always bust and boom, always hyper inflation caused by government spending resulting in debt that could be managed through devaluation only. In the 1950s a Pound was worth 20 Deutschmark, in the ’60s 12 DM, in the ’70s 8 DM, in ’80s 5 DM, in the ’90s 3 DM and now 2.30 DM = 1.15 Euro.
Britain never met the criteria for joining the Euro due to budget deficits and total sovereign debt. Budgets have to be balanced and allow a deficit of up to 3% in exceptional circumstances. In Europe 2 this is reduced to 0.5%. Britain runs a deficit of above 10%.
Total sovereign debt should not exceed 60% of GDP under EU rules. This is the most manipulatable figure.
A conference in China in May this year aimed to set standards for calculating GDP, to no avail. For example, a car produced in Germany and sold to UK will add 20.000 to German GDP. It gets sold by the manufacturer to the dealer for 30.000, to the leasing company to the end user and may end up adding 90.000 or more to British GDP.
The scope for manipulation gets bigger in the City of London. How do you evaluate an automated trade that sells the same stock a few times in a day? Has GDP really improved by millions? This leads to creative accounting that renders government figures worthless.
You could meassure total incomes of employed and self-employed, then relate to incomes of government employees and unemployed as well as pensions. It would create a meaningful figure but a too embarassing one for most governments including the British.
The City accounts for about one third of British GDP. I am inclined to doubt the value of this third. GDP per capita is supposed to be $34.800. Is it really that much for every woman, man and child on the island? How much would sovereign debt be in relation to GDP if these figures would be scrutinized?
There is no way for Britain to comply with Europe 2, so the only option is to go it alone.
This has the benefit of unlimited US support. As I reported previously the FED supplies unlimited $loans, the auction in October filled UK banks to a degree that they all pass the “stress test” now. The next audit will reveal how many dollars have been printed, or electronically generated. The last audit found $15tn of secret dollars of which a few hundred billions were unaccounted for. This audit is in the public domain for everybody to see, I reported this with reference previously in Part 4..
In a decent democracy such a revelation would have lead to questions being asked and answers demanded. Not so in the USA, in spite of all politicians being aware of the US constitution there appears to be not a single guy interested in protecting it. One may conclude that they all have personal interests to protect, after all hundres of $billions go a long way when the need to sharing them arises.
Is British corruption really restricted to buying flak-jackets for garden gnomes and charging those to the tax payer?
The attraction of the City of London lies in its deregulation or lack of regulations. It allows you to deal anonymously and connects you to offshore banks. Why should anyone want to deal in Frankfurt or Paris where every deal is observed by the fiscal eye. Hence only institutions with nothing to hide use those facilities. Hence all the big banks of this world are present in the City where they can serve the needs of the savvy investor. It’s a place that capitalism cannot do without and it is hardly a coincidence that it exists in London. The great British public will endure any sacrifice to protect the interests of the the City of London.
So some backbenchers admit that it was a mistake to grant this colony, the USA, its independence as this colonial Wall Street seeks to outperform the City. Their only comfort is derived from the fact that the expression “Liberal” is synonymous for incompetence and cowardness and used as insult in USA, a view Britain is about to share.
The foundations of what the world will look like in 2020 will be laid in 2012. When you study the events and evolution of societies leading up to 2012, when you are able to see and understand what you see, you are in a position to make fairly accurate predictions.
When you need a clean bucket of drinking water and Cameron asks to pee in it he will be ordered to relieve himself somewhere else, that’s a prediction based on having evaluated Cameron’s intentions.
When a Welsh farmer discusses the market of lamb chops with his sheep it will inspire the rams to work harder and the ewes to produce more triplets. This prediction may make sense to a large part of the British public but make no sense to others.
I am writing my book “2012/20” Capitalism Endgame. The price is 12,20 in any currency you like to pay in. For purely sentimental reasons I prefer Sterling (economical truth) but would not object to Euro, USD or anything that can be exchanged for organic food.
I’ll publish as e-book and you get to read the chapters as I write them. So start paying as long as you’ve still got some money and don’t wait ’til after x-mas. Send me an email to email@example.com to order 2012/20 and put 2012/20 in subject.
You have read “Dollar notes without ketchup Part 1 to 9” as News Flash via email or online at www.infoholix.net/blog and you know what to expect from 2012/20.
China will break up and evolve into different systems ruled by powers beyond current imagination.
Europe 2 will quickly become replaced by Europe 3 where regions represent themselves directly and nation states are reduced to resorts like art and sports. This will become the opportunity for Scotland and Wales to join. Who will be in E3 and the process that leads to its creation will even fascinate those not interested in politics – there are more aspects than politics only.
The demise of the USA and its resurrection ……. hmmm!
England to emerge as one of the world’s superpowers…….surprising skeptics?
South America united through its common currency, the Sucre.
Africa and India with its combined 2.2bn population will spring another surprise.