Podcast: Play in new window
The US federal government will once again assume certain debts of the states as per the 1790 Compromise where debts associated with the Revolutionary War were ultimately assumed by the US federal government.
After reading the short article above we can only assume that Europe will adopt the same strategy in it’s evolution and assume certain debts of the Euro states thus forming a more powerful central government?!
Yes this is what they are angling for. It will be a new Central Government based on debt but no wealth. This will be a very unstable situation!
It cannot `assume` the debts, until it has the means of raising the wherewithal to pay them. (the EU commission has very few tax-raising powers).
and even less tax collecting powers~! that’s a big problem~!
It is a huge problem.
What we have had is a big move towards giving this EU commission thing much more powers (tax-raising and much more).
The trouble is, they have not got it all yet and the move has kinda taken the ball into nowhere land.
The move has been made toward centralised tax-raising, but there would have to be one fuck of a crisis to get the last mile done~! (until then, a kind of limbo)
Taxes mean nothing unless you have the power to collect~!
How long will it take for the un-elected Czars of Brussels to set this up:
1. create a committee on tax collection
2. write the tax collection policy statement (after months of political debate)
3. draft the appropriate tax laws
4. hire the tax collectors
5. begin cultural sensitivity and language training classes (and self-defense training)
6. rent office space and accommodations all over the EU
7. send the collectors out (wearing bull-proof vests)
8. track down that deadbeat Zorba and make him pay his fair share~!
Blizzards in hell before you ever have a functioning EU tax collection system~!
Not to mention, the Greeks pay little tax to their own Gov’t, let alone anyone else..!!!
( Hello )
In the USA, the Greeks and Chinese are well know for avoiding paying their taxes. They open cash friendly businesses; diners, restaurants, dry cleaners. In their cultures, tax-paying is akin to murder, maybe even worse.
Don’t forget the Germans…..and VAT (it is a bugger to avoid~!) …. ((you may soon find out))
An American VAT will kill any hopes of a consumer-led recovery. If they really push for a high VAT, we will see a black market quickly rise. I’ve noticed lately that some businesses are offering a discount on cash payments (petrol stations, restaurants) or they are just refusing credit cards altogether (bars, pubs). It’s too easy now for the govt to track credit card receipts, and hence, taxes owed.
The old ways will return.
What did you mean by “Don’t forget the Germans”?
The Germans could ……. run da system~!!
The Germans probably could, but would the other European govt.’s allow German hegemony? If they got desperate enough, I suppose they might. I’m not sure Germany wants that thankless job. Can you imagine the anti-German rhetoric~?!
The Germans would be good at tax collecting though. The Doberman was designed for tax collection.
“Karl Friedrich Louis Dobermann served in the dangerous role of local tax collector, and ran the Apolda dog pound. With access to dogs of many breeds, he aimed to create a breed that would be ideal for protecting him during his collections, which took him through many dangerous, bandit-infested areas. He set out to breed a new type of dog that, in his opinion, would be the perfect combination of strength, loyalty, intelligence, and ferocity.”
pic: the new German EU tax collection team
It is all highly-pathetical ….. I don’t see how it can come to that.
The `inevitable` united union of european states, just ain’t that inevitable~!
(dogs or no dogs)
Without a strong, fully integrated economic, political and cultural union, the United States of Europe is just a dream. The Roman Empire, the Holy Roman Empire, the Nazi Third Reich and The Soviet Union were the closest approximation to a “United Europe”; or at least large swaths of Europe.
An authoritarian, even totalitarian, central power is required. It would have to be manifested in the form of a charismatic leader. Not necessarily a nice leader, but an extremely charismatic individual, along the lines of an Augustus, Charlemagne, Napoleon, Hitler or Stalin.
That leader would rise to power by two methods. First method, by conquest, is not likely. But, secondly, he might be able to arise through submission of the states following catastrophic failure across the continent. He would then be perceived as a Savior, not a Conqueror. A common outside enemy could also propel a Leader to the top, also seen as a Savior figure. There is a possibility that a smaller European Union (northern nations) could arise. The present EU is just too large and too diverse to be sustained. We must not forget that America fought a brutal Civil War in order to remain unified.
Does Europe still have the stomach for continental war? I doubt it. Can Europe produce such a charismatic leader with access to, and control of, the machinations of economic, diplomatic and military power? Again, I doubt it. But, I do like the sound of Emperor Mystic~!
It’s odd isn’t it …… Every time we talk about Europe, we (and every other fair minded citizen) comes to `fantasy square`.
We set off again ….. down the back-streets …… but always come back to `fantasy square`.
Peak Europe looks to be the reality.
The ball was thrown up …… and will one day land …… and we are probably kinda in da middle.
The only concrete achievements I see, from across the pond, have been a unified currency and easier border crossings. The Euro definitely helped Germany’s export economy. I guess that is why they will be the last one at the table, stuck paying the enormous bill, run up by their deadbeat dinner guests.
A Northern European Union still might have a slight chance, but it would probably crash too, in the long run. I remember when the EU was first proposed, most Americans were scratching their heads, wondering why and how? Weren’t these the same people who were slaughtering each other just a few decades ago? Now they are all going to be one big happy family? When it actually went through, and nation after nation was added, the tone turned to bemusement. “You silly Europeans; good luck, you’re gonna need it!” Fantasy or, maybe Lunacy, is more appropriate~! Another shining example of Mass Delusion~! Don’t fret, America is not far behind. The dominoes: Japan, Europe, China and then, America.
And once all of Europe looks like Greece, what will there be to “unite” and tax?
Getting taxation power is just a matter of time, as not even the US in 1790 thought about federal income tax, etc. In fact the US is still struggling with the concept of a national sales tax. I am sure some creative ideas will emerge in the not too distant future !
The meat in that comment about the US was valid, but the bread on top and bottom about Europe was vapid~!
Good work Mystic. But I think that you missed something important. When Deutschland returns to the the Mark it will not be “strong”. Their wealth has been consumed by the imbalances, and cannot be returned to them because it simply does not exist.
That is possible, but if it is true for Germany, it will be true for so many countries, that the currency would be a bet on `the future` (and Germany would still come out strong)~!?
Ya, if war or something really disastrous can be avoided that is very true. I have spent about 12 weeks there over 4 different trips. Their discipline and productivity are amazing to me.
They still have the `team spirit` that `we` have lost.
Just a short bollox post.
IME the Brits have never had a “team spirit” in terms of building something. It is always a negative “team spirit” in screwing the other guy, kicking the shit out of him or stabbing him in the back.
I spent a long time working in Europe, and every time I came across UK contractors they all had the attitude
1. I speak English
2. I am superior
3. I can drink longer and better than you
The Swiss, the Austrians, the Germans all had the “Team Spirit” to make things better for everybody.
Just my bollox.
Investors will be soon buying the German bonds at negative interest rates. Safe have is still safe haven~! Tack on inflation, and the Bunds are already negative~!
Evening Paul ( or afternoon, depending on the time there…!! )
I thought the term `negative interest rates` took the inflation rate into account….???
If not, it would imply you would pay a rate, to lend money to Germany…???
Surely no-one is dumb enough to do that..!!???
Then again, there are some dumb arse people out there… The world’s gone mad..!!!
Hello Sned, I think it’s Late afternoon. Hard to tell from my dark hermit cave~!
I was being a bit facetious about the negative interest rates, but who knows. Losing 1% in the bond markets is better than losing 5-10-15% in equities, commodities, cash (inflation), FOREX, etc. They do sell TIPS (Treasury Inflation-Protected Securities) which are, wait for it….protected against inflation. Not being a bond trader, I suspect there may be some ways to scheme against inflation. Corporate bonds, munis, exotic ETF’s, etc?
I’ll leave that for you and Mystic to ponder. Banking is a bit too boring for my taste. Also, no matter what we say or think on OTP about the banking sector, the bankers are 3 schemes ahead of us. It’s like playing chess against Fisher; fruitless endeavor. Even the govt and academic ”geniuses” are still trying to figure out how to prevent the next 2008. The investment bankers and their lawyers move at light speed.
I hope you didn’t get burnt on that bullshit Facebook IPO. Social networking, my arse~!
You are dead right…
The big bankers are 3 schemes ahead of us…
I try to stay away from shares etc, apart from my company share save scheme, and I only do that one because you can’t lose…!!!
( We don’t directly go for shares as a pension scheme like you do over there )
As for Facebook, I think it’s absolute shite….!!
I don’t even have a Facebook account!!!
( Not strictly true, I did set one up once to view my sisters pictures of her little boy, but there is no input on it from me, and to be honest, I don’t even know if is still active..??? )
Face book is full of people telling you how exciting their life is, and people I would rather not talk to…
If you don’t have my home address, e-mail or phone number, there is a reason….!!!
( Present company excluded of course..!!! :) )
Spot on, Sned.
Facebook is populated by lonely hearts and pedophiles: “Oh, I’m 13 years old too! What school do you go to and can you send me your picture?”
Also, I think there are quite a large number of spouses cheating with their old flames: “I made a mistake, you were always my one true love! Is it too late for us, cyber sweetheart?”
Isn’t it strange how young people have lost a sense of privacy. They think it is perfectly fine for a company like Facebook to data-mine them and sell their private information to advertisers. Don’t you find that strange? I always ask young people why they allow themselves to be used like that. Their normal response is, “What is data-mining?” A generation of morons, I’m afraid. Maybe that’s why they can’t buy a decent job nowadays. Oh well, more mouths for the govt. to feed in the future.
Oh it is Queen Victoria’s birthday national holiday in Canada today. Long live the queen who grants her servants such a special day!? OK someday austerity will take it all away and then 30 years from that date a new national holiday will be born ! I wonder who it will be named after ?
Link 5 is a good graph, but upon reading the article, it stated Spain lost only 1% of its deposits to German banks…
Spain has the biggest outflows in nominal terms on the graph, but I was curious if the others were experiencing bigger `exits` when compared to there deposit total….???
If we don’t converse before your appointment tomorrow, I hope all goes well…:)
I’m afraid that this is one of those `tangled web` subjects.
It is best to keep out of it (there is nothing much to be gained by knowing the ins’n'outs).
I’m economically illiterate, but Nascentmind endorses this initiative.
Let me guess, more pinging in your pee-pee? I think penicillin can clear that up, Matt~!
lol, I do need a doctor of sorts.
A witch doctor is more your style, I think~! LOL.
By the way, I liked the blue Stil-suit. Not sure which version of Dune you watched, the Lynch film or the BBC mini-series, but here is a link to the complete mini-series (2 parts). It was better, I thought, but still not that great. The book is the best version of all.
Mystic- I read your tumbler. Sorry to hear. I had an uncle with a similar issue. He went vegan and is A-Oaky. There was a documentary and book on plant based eating/diet (Forks Over Knives). He was very skeptical but after ‘nothing could be done,’ except diet, he went for it. Now he is healthier. All the best to you.
Yeah, thanks (I’ve seen the Forks thing).
I have 120 LDL, which is really very good; but will have to do better.
Vegan…..??…….Maybe not, but I reckon I can get down under 100 easy enough.
Here’s a blast from the past. Indeed I came across the “Mystic” through this website.
I like the way he brings it all down to fundamental imbalances and what the result could be.
He stopped posting for a while, but now pops up the occasional blog.