French Economists Make Plan for French Franc to Return-AEP, Daily Telegraph
Salut souverainistes. For those wanting more details on the euro break-up plan drafted by French economists, here is the link to the L’Observatoire de L’Europe website.
A few extracts, loosely translated: “The obstinate determination of governments to take us by forced march deeper into the euro impasse can only lead to the general aggravation of the economic situation in Europe.”
“Even though our American and Chinese competitors have an interest in the survival of the single currency, the euro is condemned to an uncontrollable explosion sooner or late”. (A nice twist that one, inverting the false and widely believed conspiracy theory that the US is trying to destroy the euro.)
“National currencies should be recreated in each eurozone country”. There will be a short transition period of dual notes as old euros are stamped by country (‘U’ for France) until new francs etc are printed. (This is what happened when the Austro-Hungarian monetary union fell apart in 1919.)
The new exchange rates will be determined by a formula that takes into account the accumulated inflation differential and trade balances since the launch of EMU.
The devaluations/revaluations will be set against a new unit of account reflecting the average weighting of the old euro (not anchored on the new D-Mark).
“The public debt of each state will be converted into the corresponding national currency, whoever the creditors may be. By contrast, the external debt of private entities will be converted into the European accounting unit. Even though this helps the stronger countries and penalizes the weak, it is the only feasible way to uphold preceding contracts.”
“All governments will declare a bank holiday for a limited period. They will temporarily close banks to determine which are viable and which will need to apply to the central bank.”
The central banks will lose their independence, returning to their pre-1970s status. (Quite right too. Central banks beyond democratic control are an outrage.)
The new currencies will be fixed for a period, then subject to a dirty float with 10pc margins. The economists said the whole operation would be easier if the euro first saw a big depreciation on global markets.
Irish Urge Children to Immigrate As Crown Loyalists Move In to buy Land-England Gloating
“Derek Walsh, 24, who graduated with a degree in mechanical engineering in 2008, hasn’t been able to find a job in his specialty since leaving college.
“There are more than a hundred people going for every engineering job and they all demand experience,” Walsh said in front of the welfare office. “It would even turn you off looking at them. I’m looking at leaving this summer.”
Kenny swept to power last year with a promise to fix Ireland’s “jobs crisis.” He said in November that his government is aiming to create 100,000 positions by 2015. Last year, the government reduced the sales tax to try and boost jobs, and it has cut benefits of about 370 unemployed people since April for not cooperating with measures to find work.
Many of the unemployed are “among our most talented” and are “facing a dole queue or emigration,” Kenny said during a Feb. 3 speech in Cork. “I, and the rest of cabinet, am working day and night to get them into work.”….
Indians Demand Rate Cuts on Slow Growth
Growth has slowed after the Reserve Bank of India raised rates by a record amount from 2010 until October last year to fight price increases and as Europe’s debt crisis adds to the government’s struggle to spur foreign investment. Photographer: Brent Lewin/Bloomberg
Gross domestic product will probably rise 6.9 percent in the 12 months through March from a year earlier, the Central Statistical Office said in a statement in New Delhi today. The median of 15 estimates in a Bloomberg News survey was 7 percent. Asia’s third-largest economy expanded 8.4 percent in 2010-2011.
Growth has slowed after the Reserve Bank of India raised rates by a record amount from 2010 until October last year to fight price increases and as Europe’s debt crisis and policy gridlock deter investment. The central bank has signaled readiness to follow nations from Brazil to Indonesia in lowering borrowing costs if inflation eases further, saying the government can help by curbing the country’s budget deficit…
Trouble in Paradise
Venizelos, Greek Finance Minster Calls Troika a ‘Hydra’
Greek Prime Minister Lucas Papademos plans to convene the nation’s political leaders to seek consensus on the cuts required for a bailout as unions called a strike to protest and European leaders pressed for answers.
While Papademos and the party chiefs have agreed to make further cuts this year equal to 1.5 percent of gross domestic product, they have yet to close gaps over measures demanded by creditors for a 130 billion-euro ($171 billion) rescue. German Chancellor Angela Merkel said “time is running out,” while unions derided the conditions as “blackmail.”
“It is clear we are going into another drama for Greece with many questions unanswered,” Patrick Legland, head of research at Societe Generale SA, told Bloomberg Television today. “It’s kind of a catch-22 where they have to reduce their deficit but there is no growth. It’s very tricky.”
At stake is whether Greece wins the bailout, secures a debt writeoff with private creditors and remains in the euro region. Finance Minister Evangelos Venizelos told reporters late yesterday that “failure of these talks, failure of the plan, the country’s bankruptcy, means even greater sacrifice.”
The euro fell 0.1 percent to $1.3123 as of 1:05 p.m. in Athens as investors await the outcome of the Greek talks. The Stoxx Europe 600 Index slipped 0.5 percent and the Euro Stoxx 50 also dropped 0.5 percent.
The country raised 812.5 million euros in a sale of 26-week Treasury bills today, a sale held a week earlier than usually scheduled to allow for the rollover of 26-week bills due on the Feb. 10. The yield fell to 4.86 percent from 4.9 percent in the last sale of such bills on Jan. 10
Short-term debt sales are the only source of market financing available for the nation. Bonds repayable in 2022 are worth about a third of their face value.
Greek political leaders have yet to resolve issues from recapitalizing banks, ensuring the viability of pension funds and reducing wages and non-wage costs to boost competitiveness. Greece still needs to agree on 600 million euros of fiscal measures for 2012, a government official told reporters in Athens yesterday. Meantime, unions called their first general strike of the year.
EU Demands Swiss End Tax Secrecy to Boost Cayman Island/English Crown/Israeli Bankster Business
While Switzerland agreed in March 2009 to meet international standards to avoid being blacklisted as a tax haven by the Organization for Economic Cooperation and Development, bilateral agreements signed in September with Germany and the U.K. allow client identities to remain secret.
“Banking secrecy that allows companies or individuals to hide taxes has no future,” Semeta said in an interview in Brussels, adding that he wants to crack down on EU citizens using Swiss bank accounts to hide money. “If we knew the exact amount of tax evaded, we would present a bill to Switzerland.”
While the U.S. last week broadened a crackdown on offshore tax evasion by bringing criminal charges against Wegelin & Co., the U.K. and Germany have adopted withholding tax accords proposed by Swiss bankers. Those deals “entrench Swiss banking secrecy,” the London-based Tax Justice said in an October study, which put the Alpine country at the top of a financial secrecy index.
Semeta, a former Lithuanian finance minister, has helped stall the bilateral tax agreements struck by the U.K. and Germany by ordering the two countries to redraft segments that clash with existing EU rules….
Greek Drama- Day N- Crunch Time Again Say Hapless Greeks
(Reuters) – Greek leaders face crunch talks on Tuesday to agree on unpopular reforms to secure a 130-billion-euro ($170 billion) bailout and avert a chaotic debt default which could threaten its future in the euro zone.
The leaders are caught between their increasingly frustrated partners in the European Union for failing to pass the reforms quickly and workers who went on strike on Tuesday to protest against the austerity measures.
European Union (EU) officials say the full package must be agreed with Greece and approved by the euro zone, European Central Bank and International Monetary Fund before February 15 to allow time for complex legal procedures involved in the bond swap to be completed in time for a March 20 bond redemption.
In some euro zone countries, including Germany and Finland, parliamentary approval is required to raise the bailout money.
In Paris, German Chancellor Angel Merkel on Monday expressed the exasperation among euro zone leaders at seemingly endless arguing in Athens that has yet to produce a definitive acceptance of the austerity and reform demanded by the lenders.
“I honestly can’t understand how additional days will help. Time is of the essence. A lot is at stake for the entire euro zone,” she told a news conference with French President Nicolas Sarkozy.
But leaders of the three parties in the coalition government appeared to need at least one additional day.
The office of Prime Minister Lucas Papademos, a former central banker who heads a government of politicians, said that a meeting of leaders from the conservative, socialist and far-right parties due on Monday had been postponed to Tuesday.
No reason was given for the delay. Papademos held further talks with the “troika” of lenders – the European Commission, ECB and IMF – on Monday.
The party leaders, positioning themselves for a likely general election in April, have balked at accepting another package of deeply unpopular wage and pension reductions, job cuts and tougher tax enforcement measures.
Alarmed by the prospect of yet more budget cuts, Greece’s two main trade unions said they would hold a 24-hour strike on Tuesday in protest against policies they say have only driven the economy into a downward spiral.
Demonstrations are planned in central Athens….