Posts Tagged ‘EU’

Where to now, Homo Developus?

January 16, 2019

Everybody knows that a few years ago we had a big economic breakdown. There were many reasons to explain  what happened in 2008.

Let’s step back in time a little and consider what has taken place on Planet Earth.

During the 1800’s and 1900’s our developed nations undertook a vast, worldwide surge of industrial development, which was accompanied by a universal expansion of business and corporate prosperity. This hyper-expansive phase of human development required very large-scale extractions of natural resources, which were then transformed into mega-stocks of consumer goods.

An abundance of consumer goods brought forth an abundance of consumers.

Consuming.

Consuming the goods, consuming the planet.

The end of the 20th century brought a vast slowdown. It happened in the fall of 2008, and regardless of what the bullish analysts and stimulus-chasers declare, we are still mired in that big slowdown of ’08.

And will continue to be. This is going to morph into a vast leveling out. The industrial age is over. Our planet will not tolerate another 200-year extraction expansion.

Now we have entered into the Age of Sustainable Technology and Appropriate Industry.

And herein a question arises.

Who will run the world?

Is there a cartel of Carnegie, Rockefeller, Edison and JPMorgan-types out there who will forge a new system to transform the old Industrial Infrastructure into the new Sustainable Society?

As the next surge—the post-industrial phase— is being initiated by a new breed of Industrialist . . . the Gates, the Jobs, the Bezos and Buffets . . . the industrialized Civilization stumbles into a new Electronified Zone.

A digitized twilight zone, as it were.

In the wake of the great ’08 Slowdown, we encounter a host of questions that define the logistical problem of where to go from here.

During the Investment Segment’s breakdown of ’08, a lot of very complicated financial engineering became unwound.

One financial analyst, John M. Mason, recently offered an explanation that includes this analysis of what happened in the financial world during the decline of our industrializing phase:

But, in the developed world, the presence of lots and lots of liquidity means very little in the way of corporate capital investment. The environment of credit inflation, built up over the last fifty years of so, has created a culture of financial engineering in the business community and, consequently, corporations act differently now than they did when most of the current economic models were constructed. Government stimulus gets built into greater risk taking, greater financial leverage, and financial investment, like stock buybacks.

   (https://seekingalpha.com/article/4233178-supply-side-world-europe-well-united-states?ifp=0&app=1.)

So it seems to me that the financial guys—the wallstreet wheelers and dealers, etc—having running out of real new industrial infrastructure to invest in, turned to MBS schemes and CDO games in order to keep their game going. Instead of their oversized financial whirligig running on old Industrial Growth stimulants, they rigged it to run on the fumes thereof.

Now in a post-industrial age, we find ourselves as a species, Homo Developus, scratching our heads and wondering where do we go from here?

It just so happens that, in the wake of the Great Industrial Expansion of Planet Earth, there emerges a vast bureaucracy of Smart People—number crunchers, economic theorizers, technocrats, academics, programmers, bureaucrats, not to mention the mysterious ghosts of AI —who propose to reconstruct the detritus of the industrial age into a systemic quasi-social Union that will make sure everybody is taken care of.

And so I’m wondering, what’s the best way to administrate such a civilization?

What’s the best system for governing a federation of post-industrial nations?

What’s the the most effective strategy for managing a cushy, highly-developed Society?

What’s the most humane political structure to assure income and health for all citizens?

Should Europeans, for instance, appoint multiple layers of bureaucracy to enforce labor laws so that every person has a guaranteed income?

Should the State take control of business so that everybody gets a minimal piece of the pie?

And these philosophical, or sociological questions arise:

What motivation compels some individuals to seek opportunity and then develop that opportunity into abundance and prosperity?

What drives the go-getters to excel in economic pursuits? What motivates them to acquire work, money, property, resources, and then manipulate those assets into an overflow of wealth?

What incentive impels them to take care of themselves and their families?

On the other hand, what compels some other people to, instead,  take charge of bureaucratic agencies in order to administrate a Society that assures everyone a minimum of economic assistance?

What drives some analytical people to write laws and devise policies for systematically managing governmental bureaus to assure that everyone is taken care of?

Who is in charge here?

Who is going to run the world?

Will it be the go-getters, the pioneers, movers and shakers, developers, entrepreneurs, rule-breakers, industrialists, business mavens?

Or will it be the wonks who manage the world—the academics, the specialists, bureaucrats, rule-makers, policy-crafters, the tweakers of governmental largesse?

EURomeHdq

Consider Esther Lynch’s observations:

The ETUC has watched the rise in precarious working conditions in Europe—platform working, zero-hours contracts, bogus self-employment and so on—with deep concern. Research in the UK found that young people on zero-hours contracts, for example, were far more likely to report mental and physical health problems than their counterparts in stable jobs. A study by the University of Limerick in Ireland warned that people on non-guaranteed hours could become ‘trapped in a cycle of poverty which strengthens employers’ control’, generating a fear of being penalised if they raised grievances about working conditions. In response, the Irish government has taken steps to prohibit the use of zero-hours contracts, unless the employer can show a genuine business need. Guaranteeing transparent and predictable working conditions would have wide-ranging benefits, in terms of workers’ health, work-life balance and employee retention.

  (https://www.socialeurope.eu/tackling-insecure-work-in-europe)

What does the peaceful development of Civilization require? Management by one, or the other, of these two types? Or Both/and?

Is Civilization founded upon a principle of every man/woman for hmrself?

Or will it settle into BigBrotherSister administering a vast Guarantee for All?

Or something in between.

Keep your eyes open to watch what develops.

Smoke

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Et tu, Brussels?

October 23, 2018

Of course everybody who goes to Rome brings home mucho pictures. People travel there from all over the world to tour the originating sites of the ancient Empire; then they take a little chunk of early European history home, in the form of photographs.

When we were there, yes, we certainly did do the obligatory tourist ritual of snapping photos of the so-called Imperial City. You’ve probably seen classic images of the Roman ruins, which commemorate the Empire period of two thousand years ago.

But I was most fascinated with a relatively new structure there, Il Vittoriano.

Designed in 1885, inaugurated in 1911, and completed in 1925, this incredible monument makes an absolutely grandiose visual impression when you first catch sight of it.

VitorioB

You can see from this grand edifice that the Italians have never forsaken their proudly imperial self-image.

This morning, however, a Roman venue of a grittier sort—the Circus Maximus— was brought to my attention. In his Seeking Alpha post,

    https://seekingalpha.com/article/4213358-now-circus-maximus?isDirectRoadblock=false

Mark J. Grant used that  ancient racetrack as a metaphor for the  fiscal contest that is now heating up over in Europe.

Here’s what Mark wrote about the presently escalating Continental showdown:

“The new “Circus Maximus” will include all of the European Union and their population of 512 million people. Sit back and enjoy the grand spectacle as Italy has now presented its budget and the European Commission has sent it back. Rome then reacted to Brussels and stood steadfast on the banks of the Tiber and now the overmasters in Brussels and Berlin will hand down judgment, and likely some form of bureaucratic justice, that was not fashioned in Italy, but which Italy is expected to obey.”

The original Circus Maximus, however is just a dirt racetrack.

If you’re a boomer geezer like me, you may remember, from a classic race scene in the 1959 MGM movie, Ben Hur, Charlton Heston heroically outmaneuvering a less-than-honorable competing charioteer, to win the great chariot race.

  BenHur

That scene may or may not have taken place in the Circus Maximus of olden times.

The real Circus Maximus, where those famous chariot races usually took place, wasn’t conducted in the Colosseum. The actual site was really a huge dirt track, located near the Tiber River, beneath Palatine Hill, where Roman emperors and their hobnobbing hoodoo entourages could view the spectacle from an elevated, privileged position. Here’s what the real Circus Maximus looks like now:

CircMax1

Seeking Alpha blogger Mark J. Grant speculates figuratively on how the present European budgetary shootout at the Circus corral may turn out:

“The European Commission will likely wield the big stick. This is initiating its so-called ‘Excessive Deficit Procedure.’ This process has never been used before and will likely be tortuous for both Italy and the European Union. Fines have never been applied to any country, with previous breaches by France and Germany overlooked, and yet, there is always a first time.”

If Mark J Grant’s racetrack metaphor is indeed indicative of the present European Contest, we’ll see in the days ahead whether Italy’s impudent leaders can prevail in their fiscal rebellion, or whether they will go down with classic mutterings of “. . . et tu, Brussels?”

Smoke

The European Project

September 19, 2018

The Beginning of the End of the Royals running Europe started with an upstart French officer named Napolean and a musician from the German outback named Beethoven.

The End of the Beginning of the End came when Austrian Archduke Franz Ferdinand was assassinated in Sarajevo in 1914, the event that ignited the First Big War.

Archduk4

The End of the Royals running Europe came when the appointed Generals, elected Presidents and Prime Ministers of a war-crippled Europe assembled in Versailles, France, in 1919.  The secular Leaders began trying to pull the pieces of Europe back together again, to reset Euro Civilization on a new Democratic/Republican game-plan.

StreetValncia

Since that time, the Europeans have had a rough time of pulling themselves together as a political entity. To begin with, the rubble-heaps of post-WWII Europe ended up  in a new polarity of two distant controlling hegemonies—the US and the USSR. These two emergent political empires  were centered  far outside of the fanciful entity we know as Old Europe, which existed in previous history as a continental area governed mostly from these ancient Capitols:  Athens, Rome, Madrid, Paris, London, Berlin, Warsaw, Prague, Budapest, Vienna, and—a most honorable mention—Geneva.

I call Geneva  honorable  because it is the City  on that grand network most associated with a very important concept: Peace.

The Peace of Europe had been, for 1900 years, an elusive State of Affairs, which somehow managed to survive as a glimmer of hope in the Heart and Soul of a quasi-mythical Europa.

Europe is very old, but contemporary Europeans have taken on a venerable Project to form a European Union. Exactly what that is, is a matter of political evolution, politics, compromise, and of course, Money.

This EU is a logical step forward, because the formerly long-hoped-for Peace of Europe has been flourishing since Allied victory was won at great cost of blood sweat and tears, in 1945. By the grace of God and Man, Europe has been at peace with itself since that time, 73 years.

But the next step beyond the Peace of Europe– European Union– is a prospect as elusive as finding the Holy Grail, or Valhalla, or Arcadia, or Elysian Fields of Camelot or Heaven itself.

But its political success is nowhere as easy as the Prospect for Unity that we Americans had back in the day. We had a vast, undeveloped continent as a frontier, which was populated originally by primitive tribes who were unorganized and unprepared to deal with our transplanted European development Mindset.

Most of us Americans had ancestors who wandered via Ships across the Atlantic to—as it turned out— find and construct a New World. Our forebears were confronted only by those undeveloped tribes who were already here, and a bunch of competing, mostly-poor immigrants like ourselves from different mostly-Euro traditions.

We certainly had some problems along the way, getting it all together as the United States of America. We even had a goddam Civil War trying to get it all worked out but we managed to get through that and keep the Union going, and expanding all the way to the Pacific shore.

Yes, we certainly had some problems getting it together, but our USA has been, relatively speaking, a light-duty Project compared to what the Europeans have been dealing with since the Collapse of the Old Roman Empire.

We New Worlders had advantages. We did not have, you see, all that  2000-year-old institutionalized sociological, economic and ethnic baggage that the Europeans have had and still have that keeps them caught up in differing National Purposes and Visions.

Presently, between the Teutonic bean-counters and the Mediterranean lay-backs, Europe just cannot get it together to decide how all the Expenses of governance and economic maintenance can be Paid-off.

Now we Americans don’t necessarily pay our Public Deficits either, but at least we are United in our rhetorical affirmation of equality and justice and Credit for All.  So we just keep running up the Tab and nobody gives a dam, because we have been, for a awhile, the, you know, new kid on the block and king of the hill and all that and we can get away with it.

Whereas the Euros are presently arguing about Who is going to pay the bills—the Teutonic bean-counters or the Mediterranean lay-backs.

We Americans cast a trans-Atlantic glance at them and express our deepest concern and well-wishes for a continuing Progress toward the elusive European Union and we say wholeheartedly:

Good Luck with that!

Now here’s the good news.There is a bright lining that envelopes this present Cloud of Complex Cooperation in Europa.

French President Emmanuel Macron has now proposed a new plan whereby the burdens of EU Debt, Expense, Governance and Administration of the EU are Dealt-With according to (as my American online ignoramus self-satisfied cyber-awareness would understand it) gradations of Participation, Responsibility and WhothehellCares-Responsibility in the EntitiesUnited of Europa.

These levels of Participation will be most heavily taken Seriously and Attended-To by those State/entities that are closest to the Center of Power and Influence. The peripheral Nations/States will be garnished according to their relative positions in the  outgoing Concentric Circles of Europe.

These Circles are most likely actually Parabolas. Because the actual Working Center of Europe consists not of one Point, but rather, Two Points, where the real Movers and Shakers (Bankers) of Europe run their Industrial/Financial Empires.

The Two Points are Berlin and Paris. There is a Third Centric point between them: Brussels, which is the errand by for Paris and London.

So we see that, with  Monsieur Macron’s proposed plan for the widening Circles of Influence, Europe has great Hope for the Future.

It may be a plan worthy of implementation. The Europeans have achieved Success in the Development of an essential condition: Peace.

Now it’s just the Money that’s hanging them up.

This American believes that the pesky Arguing about Who pays the Bills is actually Progress, because it is qualitatively better than Bombing each other! So they must have gotten something right, beginning back in ’45.  They have indeed  come a long way since Sarajevo in 1914.

TrainBarc

One more thing, very important. This American notices that, in spite of all the different member nations with different languages and politics and values, their system of Trains and Metros puts ours to shame. With just a mention given to their impressive High-Speed, Efficiency and Clockwork Precision, the most endearing characteristic of the Euro rail is Ease and Comfort. Taking a Euro train trip from one city to another is a much easier and far more comfortable Prospect than doing the yankee airport runaround, with sardine-contortion seating and  limited passage in the aisles when you may have to pee. Most important of all–the train seats are comfortable, roomy, easy to get in- and out-of, and less pricey than planes.

Maybe we can teach them something about Debts Pretension, while they teach us something about Running the Trains.

EuroTrain

Smoke 

The Rights of Humankind

February 20, 2017

Archives

Twelve score and one year ago Thomas Jefferson submitted an innovative set of political principles to a congress of delegates from thirteen American colonies. The gathered assembly, known as Continental Congress, debated the contents and the merits of Jefferson’s proposal. The document began with these words:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness–that to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed. . .

The world has changed a lot since those words were adopted  as the philosophical basis of a new experiment in civil government. Here are just a few of the ways our world has changed since those revolutionary days:

~ Our fledgling national legislature, known at that time as the “Continental” Congress, is now called the Congress of the United States.

~ We Americans now associate the world “Continental” with Europe.

~ On the “Continent” of Europe, citizen-groups are now struggling to form a workable political basis for a European Union.

~~ Whereas, In the year 1776, when our American Continental Congress adopted a plan for a United States of America, we had a nominal consensus for the basis of our Union; and That consensus was based, rhetorically, upon “certain unalienable Rights, . . . Life, Liberty and the pursuit of Happiness; which Rights that had been “endowed” by a “Creator,

~~ In the year 2000,   the European Parliament adopted a Charter of Fundamental Rights of European Union, by which the peoples of Europe are resolved to share a peaceful future based on common values. . . indivisible, universal values of human dignity, freedom, equality and solidarity. . . based on the principles of democracy and the rule of law.

We see, therefore, that the American Union was initiated during an historical period in which faith in a Creator God was still, at least rhetorically, allowed to be a basis for political consensus.

The European Union, however, is coalescing in a post-modern, humanistic age in which their unity can only be expressed in terms of human agreements and motivations, stated above as common values.

As we Americans ultimately divided ourselves into two primary political identities, Democrats and Republicans, with one side being generally associated with  progressivism programs while the other is  based in conservatism,

We notice that in Europe, in what is now a churning crucible of 21st-century economic constraints, the divisions seem to be congealing toward two uniquely Euro polarities. On the Right side, we find the  Austerians, whose values are based on fiscal responsibility and the austerity that is thought to be necessary for maintaining economic and political stability. On the Left side, we find the Socialists, whose values are based on equality that is assured and managed by the State, which should produce solidarity among the people.

As Thomas Jefferson had proposed a declaration based ostensibly on the zeitgeist of the so-called Age of Enlightenment, so has a spokesman stepped forth, in our age, to propose for the Europeans a document that aspires to manifest the zeitgeist of this (perhaps) Age of Equality.

Toward that end, Mr. Yanis Varoufakis, former Finance Minister of the Greek Syriza party, has proposed a five-point plan by which the Europeans would collectively assure the rights of persons as they are understood in this, the 21st-century.

  https://www.socialeurope.eu/2017/01/new-deal-save-europe/

Stated simplistically, those rights are:

~ a collective investment in green/sustainable technology

~ an employment guarantee for every citizen

~ an anti-poverty fund

~ a universal basic dividend (income)

~ an immediate anti-eviction protection.

So we see, now, that in the 200+ years since the inception of American Democratic-Republicanism, the zeitgeist that was then seen as inevitable has changed. In the so-called Age of Enlightenment (c.1776) we were demanding a Government that would Protect our Unalienable Rights, defined broadly as Life, Liberty and the Pursuit of happiness.

The modern zeitgeist, however, as it appears to be evolving in the Europe of Our Age, is demanding: a Government to Protect our Basic Life Necessities.

Instead of Life, Liberty, and the Pursuit of Happiness, citizens of the World now appear to be demanding Life, Security, and the Pursuit of Equality.

EURomeHdq

And that’s the way it is, 2017. We shall see how this develops as the 21st-century unfolds.

Smoke

A Tale of #GreekDebt

February 13, 2015

A New swelling of national Debt, in a country as old as the hills

compels northern EU partners to halt Greece’s spending thrills.

So they bind up Hellenic budgets with a cord called Austerity;

It’s the only way, they say, to get back to Euro-prosperity.

A few years down the road, and Greece is really hurting;

the Greeks are sighing, even crying: this Austerity’s not working.

We need our jobs back; we’re tired of all these layoffs,

Just give us something Greek to do besides supplying EU payoffs.

GkAgoraModel

Now along comes a liberator, a homegrown politician,  Alexis Agonistes.

He’s got homegrown renown and resolve unbound, to set free the Economy of Greece.

Chosen by the Austere-stretched people of that ancient Hellenic polity,

Alexis steps up to the mike to strike, and dispose of austerity.

With his fearless finance guy, Yanis the Untamed, standing at his side,

bold Alexis tells all the Eurocrats it’s time to let the Greek debt slide.

Growth is what we need, says he, invoking the holy grail of the economic world.

Just release this Troika bondage, and scrap these EU rules. Let Greek flags fly unfurled!

FlagsAcrop

You’ve worn us out with repayment plans, and schedules without end.

Let us do the hire and fire; we’ll pay you when we can,

‘Cause we’re Syriza ’bout strong labor, wages and good jobs for our nation,

And we will rescue our Hellen from your Troyka domination!

AthenaRRWolf

Now the Germans told the Belgians and the Brits told the French,

Beware Greeks bearing debts; they’ll sink our Euro inch by inch.

But here’s the message from Syriza, and it surely isn’t funny:

Beware the Troikan horse, and Europeans demanding money.

Centars4

Glass Chimera

Road to a Grecian Turn

January 30, 2015

With apology to John Keats, a new poem for 2015:

 

Oh, You unbridled bride of Entitlement,

Can you still afford to pay the Rent?

You, love-child of Austerity and Free-spending,

Is your ambrosia Never-ending?

Paid debts are sweet, but those unpaid are sweeter

says your new Syriza leader,

’cause we’ve got to get the people working,

so in Unemployment they’ll not be lurking.

Ah, happy, happy days that cannot end,

as long as EU-lovers still do send

debt forgiveness, and credits new

so you’ll never bid EU adieu.

UmbrelSyntagm

Who are these coming to the Sacrifice?

a little help from Euro friends would sure be nice.

The Germans, the French, will surely come

and Play the Games until they’re done!

MarblStrt2

Oh Athenic State, on marbled path of Austerity

Can you reach that elusive peak of Victory?

Winged Athens, her goddess wings now torn away–

Has she lost her head in heat of the fray?

PleatedFigur

Oh, for ever may you live, and Greece be fair!

as long as EU pals still care.

Austerity puts Prosperity on the go–

That’s all you really need to know!

Glass Chimera

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