Global Economy: European economic figures far more accurate than those from the US - by RM

Transparency key to success Atlantic Alliance

When listening to or reading US financial reports there are some remarkably disturbing facts popping up.

One of these is the fact that it was actually the US which caused the 2007/2008 financial crash but this has been completely swept under the mat by the US.

Keep in mind though that all the media outlets in the US, except very few, which are "not for profit organizations" (who mainly get their income from public/private donations and grants) are mostly profit based multi-national corporations. This should immediately raise a red flag as to the impartiality and balance of the news/financial reports they release.

Possibly, this is also the reason that at the same time there is this constant barrage of attacks coming from those same US media circles bashing and critizicing the EU/ECB for not adopting the US QE financial policies (printing more money and pumping this" monopoly money" into the marketplace) in order to get the EU economy going again.

As to the US QE policies,  many economists believe this could eventually be a recipe for future US economic disaster.

Also, looking at some of the official figures put out by the US Government and reading between the lines, the attentive reader will quickly find a lot of nebulous statistics on a variety of issues and items, including employment, trade, debt, infrastructure, military and security expenditures.

In this volatile scenario Wall Street is a special "Chapter" by itself.  Some critics call Wall Street a financial "fairyland" where words and phrases as versatility, headwinds, optimize, boldness, performance, choices, transparency, bubbles, wealth, growth, state of the art, profitable, opportunity are used in different ways as shares go up and down and traders turn out the big winners in dividing up the spoils.

Obviously without any doubt there are also "forces" in Europe ( Britain) who are following and would love to have the EU adapt this "flawed" US financial model.

Fortunately, and maybe unfortunately for some,  the EU is a Union of 28 countries with 28 central banks.  Of these 28 countries 18 belong to the so called European Economic Zone (Eurozone) that have adopted the euro (€) as their common currency.and sole legal tender.

The ECB is the central bank for the euro and administers monetary policy for the whole Eurozone.

Any report or statistic on or about the state of the EU economy issued by the ECB  is scrutinized very carefully by all 18 members of the ECB before they become public.Canada which is a Federated country also applies similar rules.

Official EU financial reports and statement are therefore without any doubt far  more accurate and reliable than those coming from US government agencies.

Isn't it time for the EU to get to the point with our friends across the other side of the pond on this issue? And what better venue to do it than during the ongoing EU-US trade negotiations?

EU-Digest

The Wall: 25 Years After Berlin, Do We Still Need Walls? - by Peter Schurman

The Berlin Wall fell 25 years ago this week. People on both sides filled the streets in celebration, cheered on by virtually everyone around the world. For all of us who were alive then, it remains one of the most hopeful historical moments we've ever experienced.

Now that 25 years have passed, it's an appropriate time to take stock. Have we seized our historic opportunity to create, at last, a more peaceful world?

Sadly, we have not:

• By Wikipedia's count, the US has engaged in 10 wars since then, and we now live in a surveillance state the East German secret police would have envied.

• Russia has reasserted regional military dominance, annexing Crimea, threatening other parts of Ukraine, and re-conquering Chechnya.

• The Middle East is a boiling cauldron of warfare, much of it touched off by the American invasions of Iraq in 1991 and 2003.

• China is building a potentially formidable Navy and picking fights with its neighbors.

How can it be that we've made so little progress, following such a breakthrough?

As global citizens, we largely left the job of converting the end of the Cold War into a lasting peace in the hands of our national governments.

We had little alternative at first: in 1989, the Internet had not yet been
widely adopted, so people worldwide had no way to band together at scale.

The arrival of the Internet has upended virtually every major system on earth, revolutionizing our economy and breathing new life into grassroots politics.

Yet our governance structures remain stubbornly anachronistic. And they're failing us, not only on the great question of war or peace, but also on many other front-burner issues today, including global warming, economic inequality, disease response, immigration, human trafficking, and financial crimes.

Although we seldom consider it, one key factor that ties all these failures together is our fragmented system of nation-states, separated by militarized borders.

Almere-Digest Note: After the wall went down in Berlin many new walls went up. There is now a wall built by Israel which will eventually stretch for 750 km's between Palestine and Israel. There is also a new wall between the US and Mexico and China has built an electronic wall around China to curb what the Chinese citizens can see on the Internet .   

Read more: 25 Years After Berlin, Do We Still Need Walls? | Peter Schurman

EU-US Trade Negotiations: Europe faces weapons of legal destruction in USA trade talks - by Kevin Albertson

Efforts to build a more effective trading regime between Europe and the USA can reasonably be called positive, both for growth and the ease of doing business. Currently, however, negotiations include proposals which threaten to distort the way governments regulate companies and which might cost the taxpayer dearly.

The sticking point for many is the inclusion in the TTIP negotiations of the contentious Investor to State Dispute Settlement (ISDS) provision.

ISDS gives international investors the right to bring a case for damages against the local government if they (the investors) feel government policy has harmed their interests. A supposed independent international tribunal hears such claims. In other words, under ISDS, multinational corporations have the right effectively to sue a sovereign state, demanding the state (that is, the taxpayer) compensates them for enacting domestic policy if it reduces profitability below that which was expected.

There are clear potential conflicts of interest. The responsibility of the corporate sector is to maximise profits, while the responsibility of government is to promote competition which might reduce corporate profits; also governments must promote the public good – which is likely in some instances to affect corporate profits, for example in controlling pollution or enforcing health and safety legislation. Establishing a means by which disagreements might be resolved is, therefore, of some importance. However, to this end, the ISDS is not an efficient means – it is apparently skewed.

ISDS arguably weakens the rule of law, forces the public to subsidise the risk of multi-national investment abroad, and effectively encourages outsourcing.

Read more: Europe faces weapons of legal destruction in USA trade talks

Disparity: How Shadow Banking and Extreme Wealth Inequality Threaten Us - by David DeGraw

Hidden wealth estimates vary widely. Many of them only take a partial look at the most basic methods of offshoring wealth.  Given the unprecedented growth of wealth over the past generation, the secretive methods used to hide it have evolved far beyond well-known tax havens in Switzerland and small-island jurisdictions such as the Bahamas.  While estimates based on banking secrecy and tax havens help to give us a more accurate picture of overall wealth, they do not give a total view.

Research by Gabriel Zucman, which analyzed banking secrecy, estimated that “around 8% of the global financial wealth of households is held in tax havens.”  If we correlate this 8% with the $82 trillion in accounted for wealth reported by the Federal Reserve, that would be an additional $6.6 trillion for the wealthy, bringing the richest 1% up to roughly $39 trillion in overall wealth.

However, to get a more complete understanding of the reality of the situation, the most wide-ranging look into hidden wealth was done in 2012 by economist John Henry in partnership with the Tax Justice Network (TJN).  They estimated that there was $21- $32 trillion hidden globally at the end of 2010. As shocking as that sounds, that estimate still did not give a complete view of hidden wealth.  As they put it, “We consider these numbers to be conservative. This is only financial wealth and excludes a welter of real estate, yachts and other nonfinancial assets owned via offshore structures.”

We also need to consider that overall US household wealth is up 30% and has increased by $25 trillion since the end of 2010. Globally, High Net Worth Individual investible wealth has increased 19% since then, and has begun to accelerate at a record pace.  In 2013, it increased globally by 14%, with a 17% increase in North America, which is now at an all-time high.  Given these factors, and several others that will be explained below, the higher TJN estimation of $32 trillion in 2012 is conservative today.

Correlating TJN’s wealth estimates with US distribution percentages is not an exact science but it gives a much more accurate total of overall wealth than excluding it.  Based on TJN’s estimation, Ultra High Net Worth Individuals (UHNWI) accounted for 48% of hidden wealth.  If we correlate that to the overall estimate of $32 trillion, it equates to $15.4 trillion for the UHNWI population.

The US accounts for 35% of the UHNWI population, which correlates to $5.4 trillion.  In the next tier, High Net Worth Individuals (HNWI) also accounted for 48% of hidden wealth.  The US currently has 42% of the HNWI population, which correlates to $6.5 trillion.  The additional 4% of hidden wealth is estimated to be held below the economic top 1% of the US population, which correlates to roughly $538 billion.

This brings the estimated total of hidden US wealth to $12.4 trillion, with $11.9 trillion of that held within the top 1%.  We can now estimate that the top .01% has $14.5 trillion in wealth, the top .1% has $26.4 trillion and in total the top 1% has $44.5 trillion.

Read more: How Shadow Banking and Extreme Wealth Inequality Threaten Us | Alternet

Immigration: EU migration is essential for a healthy economy, says CBI's John Cridland - by John Cridland

As a proud Bostonian, the change in my Lincolnshire home town over the past decade is striking. West Street is now interspersed with vibrant Polski skleps selling an array of Eastern European goods. And while it was unusual to hear so many languages spoken when I was a boy, Slav languages are now being taught in local schools.

I understand that immigration has social and cultural impacts that can’t be ignored. But as head of the UK’s biggest business group, I am concerned about where the debate on immigration is heading. I know business leaders share this unease.

Across the political spectrum, there is a mismatch between rhetoric and reality. Immigration has helped keep the wheels of this recovery turning by plugging skills shortages. This has led to more jobs for British people and driven growth. Without free movement of workers, the recovery would grind to a halt.

Our hospitals and care homes couldn’t function without overseas workers; building sites that we need to deliver more homes and big infrastructure projects, such as the roll-out of broadband, would also stall.

EU migration also has a positive impact on the UK’s fiscal position. Research from University College London shows that over the decade since 2001 EU migrants made a positive net contribution of £2,732 per person per year.

Businesses benefit too, with 63pc of CBI members saying free movement of labour has been beneficial. And that free movement cuts both ways: well over a million Britons live and work in the EU. Of course, there are concerns around immigration.

Note EU-Digest: Regardless what Eurosceptics and Nationalists, Ultra Conservatives are saying the EU needs more not less immigrants.

 Read more: EU migration is essential for a healthy economy, says CBI's John Cridland - Telegraph

Meat Products - Russia to hold talks with EU Commission on illegal imports of European meat

Russian veterinary standards officials will hold urgent talks with the European Commission on illegal supplies of European meat to Russia, the country's veterinary regulator said on Monday.

“We have asked for a meeting in Brussels considering large-scale issues connected with uncontrolled movement of meat products of unknown origin across EU territories,” Sergey Dankvert, head of the Russian veterinary and phytosanitary service Rosselkhoznadzor, told TASS.

Negotiations between Bernard Van Goethem, director of the European Commission’s Directorate-General for Health and Consumers, and Rosselkhoznadzor Deputy Head Yevgeny Nepoklonov will take place on October 28, Dankvert said.

Last week, the Russian regulator busted major supplies of European pork to Russia declared as juices, vegetables and mushrooms.

“These supplies passed customs clearance in the European Union. The content of containers is under the direct responsibility of EU veterinary services, which we see do not exercise any control and promote smuggling,” Dankvert said then, noting that container checks had halted supplies of around 360 tonnes of frozen pork from Germany, Poland, the Netherlands, Belgium and Brazil. Deliveries were declared as juices, vegetables, jams and chewing gum, he said.

Read more: TASS: Economy - Russia to hold talks with EU Commission on illegal imports of European meat

Global Economy: The Stark Facts of Global Greed, a Disease as Challenging as Climate Change

Global inequality, like global warming, is a disease that may be too far along to ever be cured.

We seem helpless, both in the U.S. and around the world, to stop the incessant flow of wealth to an elitist group of people who are simply building on their existing riches. The increasing rate of their takeaway is the message derived from the  Credit Suisse Global Wealth Databook (GWD).

It's already been  made clear that the richest Americans have taken almost all the gains in U.S. wealth since the recession. But the unrelenting money grab is a global phenomenon. The GWD confirms just how bad it's getting for the great majority of us. 

Read more: The Stark Facts of Global Greed, a Disease as Challenging as Climate Change | Alternet