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HUNGARY STARVED OF FUNDS

By David Vance On January 18th, 2012 at 8:49 am

A minor European war has broken out but it doesn’t seem to get much media profile;

“Hungary’s defiant premier Viktor Orbán has no hope of securing vital funding from the EU and the International Monetary Fund until the dispute is resolved, leaving him a stark choice of either bowing to EU demands or letting his country slide into bankruptcy.

Yields on Hungary’s two-year debt jumped to 9.17pc on Tuesday, an unsustainable level for an economy in recession with public debt of near 80pc of GDP. Hungary’s debt was cut to junk status by rating agencies last week. Capital Economics said Hungary must repay €5.9bn (£4.9bn) in EU-IMF loans and raise external funds equal to 18pc of GDP this year, the highest in Eastern Europe. Two-thirds of household debt is in Swiss francs, leading to a lethal currency mismatch as capital flight weakens the forint. “Hungary is playing with fire,” said Lars Christensen from Danske Bank. “The EU is not bluffing. It will let Hungary go over the edge to make the point that EU countries must play by the rules. Our worry is that Hungary’s government has not yet got the message.”

But EU countries do not play by “the rules” when it suits them and it seems that Hungary has been singled out for some tactical Euro-bullying.  The message is that Brussels will control every Nation State and Hungary is expected to be starved of funds unless it submits to the EU. The tyranny becomes more overt by the day.

ZUT ALORS!

By David Vance On January 14th, 2012 at 5:12 pm

Debt crisis: Eurozone back on the brink as France has credit rating downgraded

Well, this is my birthday weekend (21 again tomorrow, plus VAT) so am not about as much as normal. But you would need to have  heart of stone not to smile at this news;

Stock markets and the single currency fell sharply as Standard and Poor’s cut France’s AAA rating. Italy saw its long-term rating drop by two notches, along with Spain, Portugal and Cyprus. Austria, Malta, Slovakia, and Slovenia had their ratings lowered by one notch.

The move triggered a backlash from European politicians and led to calls for Britain to be downgraded too. (Truly pathetic) It represents a further loss of confidence in the single currency and the European Union’s ability to rescue indebted eurozone members. The Treasury believes that any collapse of the euro could seriously damage the British economy and banking system, pushing the UK back into a deep recession. The agency’s move also threatens to torpedo the main European bail-out fund set up to support struggling countries such as Greece and Portugal.

Can you imagine Sarkozy’s FURY that his country gets downgraded and the UK doesn’t? Still unless Osborne actually starts cutting rather than talking about cutting, the UK will also be downgraded.

HOMER AND THE EURO…

By David Vance On January 4th, 2012 at 10:03 am

Dan Hannan hits the topic pretty much on the head…

“Do you remember that scene in The Simpsons where Homer, King of the Springfield Mardi Gras, is rolling downhill in an out-of-control float and commands his ‘subjects’ to throw themselves before the wheels so as to slow his descent? Well that, more or less, is the attitude which eurozone leaders are taking to their peoples.

Listen to the self-pitying tone of their New Year messages. While David Cameron struck an upbeat and patriotic note, the chanting from the palaces and chanceries of Europe was like some monkish threnody. Nicolas Sarkozy called for stoicisim in the face of ‘the worst economic crisis since the war’. Angela Merkel said that 2012 would ‘without question be worse than 2011’. Mariano Rajoy announced the end of mid-week public holidays, telling his countrymen, ‘this is no time for fiestas’.

” The reason that the eurozone faces such hard times is that its leaders have decided to keep the single currency together at any cost. The coming recession is not some inexorable force of nature; it is a consequence of the policies being pursued by Merkozy, Monti, Barroso and the rest.”

Exactly. It is the burning desire to keep “the project” alive that will cause the misery to come. Even worse, they will fail to keep the currency together and so all the pain will be in vain. That pain, of course, will not extend to the political classes who now urge austerity.

WHAT HAPPENS WHEN THE EURO DIES?

By David Vance On December 27th, 2011 at 10:28 am

The Government is considering plans to restrict the flow of money in and out of Britain to protect the economy in the event of a full-blown euro break-up.

The question is; what should the UK do when the Euro finally dies? Does that sound melodramatic? Perhaps, and it is something that few people seem to want to contemplate but the harsh reality is that the Euro IS going to crash, very likely in 2012, and plans have to be made;

“The Treasury is working on contingency plans for the disintegration of the single currency that include capital controls. The preparations are being made only for a worst-case scenario and would run alongside similar limited capital controls across Europe, imposed to reduce the economic fall-out of a break-up and to ease the transition to new currencies. Officials fear that if one member state left the euro, investors in both that country and other vulnerable eurozone nations would transfer their funds to safe havens abroad. Capital flight from weak euro nations to countries such as the UK would drive up sterling, dealing a devastating blow to the Government’s plans to rebalance the economy towards exports.”

Not sure I agree with this contention. If the UK can attract capital from failing Euro nations, surely that is a good thing? If the Pound becomes a safe haven, like the Swiss Franc, I believe that is good news for the UK.  Why should we seek to have a weak currency to “help” exporters, last time I checked it didn’t help Zimbabwe!

Then there is this;

“The Ministry of Defence has been consulted about organising a mass evacuation if Britons are trapped in countries which close their borders, prevent bank withdrawals and ground flights.”

Eurogeddon – coming to a Euro State near you, soon. And all because of the hubris of a detached European political elite who refused to abandon their plans to grab power at the expense of their citizenry.

THE COST OF DIKTAT

By David Vance On December 24th, 2011 at 10:49 am

Dealing with economic incoherence is such a thankless task but here goes;

“Agency workers in the UK are set to receive a pay and conditions boost as new rights come into effect. The Agency Workers Directive gives such workers equality with directly employed staff after 12 weeks in a job. This could mean pay rises and rights to holidays, sick pay, maternity leave and access to private health benefits. Trade unions have welcomed the move, but some employers say it could discourage firms from hiring casual staff. The move comes after the UK government implemented the European Union directive, which was introduced on 1 October.”

So, this is a EURO ruling which we have meekly submitted to. What will happen is that whilst all these new “rights” are banked and no doubt rigorously enforced in the lumpen public sector, in the REAL world, employers will take a view on the additional costs of these “rights” and make the necessary workforce adjustments. The market always adjusts.   Just like the minimum wage farce, it costs jobs and reduces rates of pay differential but try explaining that to a Leftist who feels all warm and good about forcing employers the rate to pay employees.

Order, Order, especially in the Front!

By Mike Cunningham On December 22nd, 2011 at 4:07 pm

A singularly well-disguised timebomb, shaded under the formal and courteous language used by the collective membership of the House of Lords, and named as the European Union Membership (Economic Implications) Bill [HL] 2010-11 passed yesterday through the Second and Third Readings of that Bill, and now moves quietly forward to the Commons, where it shall detonate early in the New Year.

After the European Council Treaty Veto which wasn’t, possibly because the Treaty didn’t even exist in draft form to be voted or vetoed upon, I wonder how our political masters will treat this subversive little document?

I haven’t a great deal of knowledge about Lord Pearson of Rannoch, apart that is from what has been published in various Web pages and Wiki documents; apart that is from the fact that he used to take the Conservative Whip in the Lords, but broke with them to become firstly a CrossBencher, and then to join UKIP, a Party which he led for a year, and then resigned. But I would bet a large lump of Sterling on his not being a recipient of a Christmas card from David Cameron this year, especially after sending the ‘Economic Implications (Europe) Bill to land in the Commons postbox tomorrow!

It is a singular testimony to the unspoken irritation of all in the European Camp within Westminster that no-one within the Lords spoke against this delicious assault on everything the Europhiles hold dear, as, whilst many of their Lordships like and appreciate all that Europe stands for, as long as we read of this, and this, as well as this, in our newspapers; a singular dislike is commonplace within that mannered place. Every time the British read an item which concerns Europe, or the European Union, or the European Court of Human Rights; or indeed any other of those interfering, busybody outfits which really gets up our collective noses, the slant is always negative, and they inevitably reflect a real talent for getting our collective backs up!

The ‘colleagues’ win again!

By Mike Cunningham On December 18th, 2011 at 9:47 am

Watching the usually-hidden workings of the European bunch, including the Commission, the Council and the various sewage departments, as they vent their fury upon a Union Member (the United Kingdom), as we had the sheer audacity to say ‘No, Thanks’ to yet another bandage job (or treaty, as they prefer it to be named), I did not realise the amount of acid which was being splashed in our direction.

So, Cameron, for the first time, showed a tiny proportion of intelligence as he stated that he, and of course Great Britain, did not wish to envelop ourselves in yet another Treaty which had not even existed even in a draft format when it was presented to the Council. Bitter experience, as with the Lisbon, Maastricht and all the other Treaties which promised one thing, and strangely enough ended with something entirely different, had shown Cameron that if he had signed, he would have been consigning his nation to evermore ‘collective rule’ by the ‘colleagues’ in Brussels.

So he walked away, and has been perhaps vindicated in a way perhaps special to the Brussels Dictatorship. Because the draft Treaty, when finally published, shows that it would become Law when nine of the seventeen nations ratified it, with no referendums or blocking Parliaments allowed to interfere with a decision of those same ‘Colleagues’!

I do not know how this oily crowd are planning to get around  Article 4.2 of the Treaty on European Union , but, rest assured, they will find a way!

Just think, if you will, of the uproar within the Westminster Parliament, never mind the so-called Eurosceptic newspapers, if they were told that, because the Prime Minister had signed up, they would not even be allowed a vote, because it would not matter!

WHAT DIVIDE?

By David Vance On December 12th, 2011 at 1:03 pm

The MSM, led by the BBC, is claiming that UK PM David Cameron is “isolated” from the great Euro debacle. I say that is a good thing but looking at the polls, Cameron is certainly NOT isolated from UK opinion.

“The Times reports that a Populus poll finds that almost six in ten people (57%) declared that David Cameron was right to use his veto at last week’s EU summit after EU leaders refused to agree to safeguards on the single market and financial services regulation. Only 14% opposed the move. A Survation poll for the Mail on Sunday found that 62% of people agreed with the PM’s stance, with 19% against. In another opinion poll for ComRes, UKIP polled above the Lib Dems for the first time.”

So, the PM is reflecting the overwhelming view of the BRITISH public. I know that may seem radical to leftists but it seems very sensible and dare I say it – democratic, to me. Little wonder the little Eurocrats are incensed.

IN OR OUT?

By David Vance On December 11th, 2011 at 9:37 am

The question is simple; Should the United Kingdom remain in the European Union? Yes or No. My view is an unequivocal NO.

The first poll conducted since the acrimonious Brussels summit shows that a total of  62 per cent of people agreed with the Prime Minister’s defiant stance, with just 19 per cent against. 

Furthermore, most people believe the euro is doomed to fail and almost half think the EU will break up. They also fear the summit has given too much power to Germany.

If there was a referendum today on whether the UK should quit the EU, it would be likely to produce a resounding Yes. Nearly 50 per cent say we should go our own way, with 33 per cent in favour of staying in.

I fully endorse the decision by Cameron to veto the Merkozy deal but I do agree that the UK will be more isolated as a consequence. The problem is that we are not isolated enough. Despite all the rhetoric, Greece, Spain, Portugal,  Italy, Ireland …they remain mired in debt and there is no plan to solve this short of imposing unelected “technocrats” and thus bypassing the democratic process. Who wants to part of THAT sort of Union? None of the core financial problems have been addressed and the markets know this.

Sarkozy is playing the “short game” – in every sense of the word. He is up for re-election next year and so his calculated insult to the UK will undoubtedly play well to the home audience. If it wins him another term, then the terms of the deal that alienate the UK have been worth it. But the money markets have just downgraded 3 of the biggest French banks so one wonders why he fiddles whilst Paris burns?

The UK is better off in every way by removing itself from the EU. Remember that we are a NET contributor of £9.2bn per year to this crumbling edifice.

Let’s cut to to the chase; Cameron had no choice but to veto a Treaty designed to further hollow out and undermine the UK, and our financial services in particular. Berlin and Paris envy the achievements of the London Financial powerhouse and seek to crush it. We must not allow this or OUR economy will further weaken and with Financial Services contributing a staggering 10% of taxes.

JUST WHAT THE EU NEEDS – 70 MILLION MUSLIMS?

By David Vance On November 20th, 2011 at 11:12 am

(L to R) Afghanistan's Karzai, Turkey's Gul and Pakistan's Zardari

Well, what a surprise!

The Turkish President, Abdullah Gul, says his country still wants to join the European Union despite the euro zone crisis. Mr Gul, who will arrive for a three-day state visit to Britain later, told the Sunday Telegraph, Turkey would strengthen the EU. The Turkish head of state has various ceremonial events, public engagements and political talks this week.

As you know, UK PM David Cameron, that well-known..cough splutter..”eurosceptic” is outraged that Turkey is not already in the EU. Cameron believes that Europe will immeasurably benefit from having 70 million more Muslims streaming across it. You couldn’t make it up!