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January 26, 2015

Greece: Greek radical-left leader vows to end Wall Street imposed 'humiliation and pain'

Greek leftist leader Alexis Tsipras promised on Sunday that five years of austerity, “humiliation and pain” imposed by international creditors were over after his Syriza party swept to victory in a snap election on Sunday.

Read more: Europe - Greek radical-left leader vows to end 'humiliation and pain' - France 24

January 24, 2015

Global Economy: The Politics Of Economic Stupidity - by Joseph Stiglitz

In 2014, the world economy remained stuck in the same rut that it has been in since emerging from the 2008 global financial crisis. Despite seemingly strong government action in Europe and the United States, both economies suffered deep and prolonged downturns. 

The gap between where they are and where they most likely would have been had the crisis not erupted is huge. In Europe, it increased over the course of the year.

Developing countries fared better, but even there the news was grim. The most successful of these economies, having based their growth on exports, continued to expand in the wake of the financial crisis, even as their export markets struggled. But their performance, too, began to diminish significantly in 2014.

In 1992, Bill Clinton based his successful campaign for the US presidency on a simple slogan: “It’s the economy, stupid.” From today’s perspective, things then do not seem so bad; the typical American household’s income is now lower. But we can take inspiration from Clinton’s effort. 

The malaise afflicting today’s global economy might be best reflected in two simple slogans: “It’s the politics, stupid” and “Demand, demand, demand.”

Read more: The Politics Of Economic Stupidity

QE ECB: Germany wary of ECB quantitative easing, World Bank warns reforms needed as well

European stock markets were boosted by the European Central Bank’s bond-buying scheme with several share indexes hitting seven-year highs on Thursday.

Banks and car makers were among the best-performer companies as they are likely to benefit from cheap lending rates and a weaker euro.

But the head of the World Bank, Jim Yong Kim, told euronews that on top of the bond purchases, eurozone governments also need to do more to reform their economies.

Referring to the bond buying he said: “This is a tool and it should be used, because the potential to have a self-fulfilling and continuous deflationary cycle was very real. The other half of this is that there’s still not enough to really solve the problems. You know, the countries that are in the most trouble, have to move forward with their reform agenda.

What an opportunity! We have historically low oil prices and now we have a quantitative easing. This is now the time to really jump in.”

Germany was the least enthusiastic with economists, politicians and business leaders there warning this is taking the euro system deeper into unchartered territory.

Hans-Werner Sinn, the head of the influential Ifo economic think-tank, called it “illegal, unsolid state financing by printing money”.

Note EU-Digest: Mario Draghi the ECB Chairman who used to be a Goldman Sachs employee is going on a slippery slope with QE financing - Given Draghi's US related banking experience and link with the Goldman Sachs Financial corporatio - whose financial history is not one of sound and honest practices puts up a lot of red flags.

Read more: Germany wary of ECB quantitative easing, World Bank warns reforms needed as well | euronews, economy

January 21, 2015

USA: State of the Union speech by President Barack Obama

In presenting a series of initiatives aimed at the middle class, Mr. Obama hopes to pivot finally from the politics of adversity and austerity that have frustrated him for much of his tenure.

But coming off a midterm election defeat that handed full control of Congress to Republicans, the president faces long odds in actually enacting his agenda and in essence is trying to frame the debate for his remaining time in power and for the emerging 2016 contest to succeed him.

Read more: The White House

January 20, 2015

Netherlands: Agricultural exports top 80 billion Euros

Agricultural exports from the Netherlands topped 80 billion Euros last year (80.7 billion), up from 2013's record levels of 79 billion. Dutch Minister for Agriculture Sharon Dijksma made the customary announcement at the International Green Week in Berlin, the world's largest agricultural trade fair. The figures are based on LEI Wageningen UR estimates, and as in previous years, definitive figures are expected this spring.

Read more: Netherlands: Agricultural exports top 80 billion Euros

EU and the US: strange bedfellows - perceptions and reality - by RM

When asking this question it might be a good idea to look at what unites and divides these two Atlantic Alliance partners.  

Historical ties: US and Europe  respect many common democratic ideals and through-out the years always jointly stood up for these ideals on many occasions, including-fighting wars and conflicts over these ideals against adversaries together .

Economics: both the EU and the US adhere, certainly if we look at these ideals in the past, to supporting and promoting free and open global trade,

This common purpose has, however, eroded  rapidly over the past 5 - 10 years.

Comparing US and EU austerity programs following the 2008 economic crises, it seems that when you put EU austerity programs under a magnifying glass they are in effect quite realistic, and even though they are so far not showing spectacular results, these measures seem to be working.

The US, on the other hand, seems to be doing economics by "magic wand" and in the process has rung up the world's biggest deficit.

The so-called  quantitative easing {QE) developed by the US Fed in fact means just printing more money and putting their head in the sand. QE is only pushing the day of reckoning further away. Unfortunately, this kind of economic policy will come and haunt the US in a big way one day.

In the past the US had a thriving industrial base on which it could fall back. It does not have that today.

As to Europe and the ECB, chaired by Mario Draghi, a former Goldman Sachs employee, it seems the ECB is also expected to take the plunge into quantitative easing, mainly as a result of constant Wall Street Pressure.

The results, in the long run, will like with the US program, eventually not be what was expected.     

Facts and figures: European economic data is usually very accurate. In contrast, US economic data including labor data is not always accurate, making it necessary for the US Government to release several updates and revisions which make it quite confusing for economic analysts.

Freedom of the Press: there does not seem to be any apparent censorship of the Press in either the EU or the US

Watching the news in America outsiders are constantly amazed by the uniformity and sensationalist news coverage projected by the corporate owned networks to the majority of US viewers,

Two US exceptions as to the above observation are "link TV" and "PBS".

Aljazeera America and BBC America are also considered good alternatives for news "without a slant" one can watch in America.

For more international news, another possibility is "streaming" news from France24 on your computer. .

For Europeans in America interested to keep up-to-date with their home news they will find most local European TV stations have internet links which you can watch anywhere in the world..

Miscellaneous observations Some other general observations about American and European differences

Like the EU, the US is a magnet for immigrants and refugees from economically, democratically, and war ravaged countries.

The US population in general is obese, consumer driven, under-educated and not very savvy when it comes to world affairs or in speaking foreign languages.

The EU population is nationalistically and  negatively inclined at what they consider as foreign, be it immigrants or religious beliefs..

Europeans in general are far better educated than Americans, many speak at least 2 to 3 languages and are aware of what is going on around the world.

Corporations: Corporate America: has basically taken over political America and regardless of the fact that they are perceived in both the US and the EU as corrupt and too powerful, are nevertheless continuing their practices as usual and are practically unopposed by governments on both sides of the Atlantic

Corporations and their lobbyists are getting an ever stronger foothold in the European parliament.

Racial Divide: There is still a huge, often hidden, racial divide between black and white in America.

Middle East: The strong Jewish influence and political lobby by Israel in relation to US policies in the Middle East has certainly contributed to the present chaotic situation in that area.

The situation becomes even more muddled if one includes in that picture the US close ties with Egypt, Iraq, Saudi Arabia and Turkey.

One could also say that this situation  is reminiscent of the former British Empire "divide and conquer" policies which eventually ended in disaster.

The EU has a different vision about relations with Middle Eastern countries and has close ties with the Palestinians and their leader Abbas .

The EU has also strongly objected against the destructive Israeli attacks against Gaza and the unauthorized expansion of Israel on the West bank.

NATO: EU states are usually forced to go along with the US on their military adventures in the Middle East and elsewhere as a result of their membership in NATO.

Research and polls show that 68 % of the EU 500 million plus population would vote in favor of getting out of the NATO if a referendum were held today

The Environment: On the issues of global warming, GMO, and alternative energy, the population of the US is held mainly in the dark by the corporate controlled press and government.

Consequently, they are not totally aware of the dangers lurking around the corner if no action is taken.

Future outlook: A positive development for future change is that the "below 30" of the US population have no appetite for any global military adventures, and little or no confidence in their present political representatives. and  believe transparency of Government actions are compromised.

This positive outlook is also apparent in Europe

It certainly is a hopeful sign that the change which is coming will probably also result in the US and the EU becoming more equal and independent partners within the Atlantic Alliance than they are today.

EU-Digest

January 17, 2015

Poll: 80% of EU-Digest readers consider torture unacceptable to extract information from prisioners

An EU-Digest poll held from last year December 15 to January 16 of this year found that 80% of EU-Digest consider torture an unacceptable method of interrogation of prisoners.

Our new poll which will run through February 16, 2015 asks the question: "What should be done to EU citizen Jihadists returning home from serving in foreign military activities."

EU-Digest