The mass protests on the streets of French cities recall the first years of the American War of Independence. In the years before and during the American Independence Movement, the resentment that independence advocates harboured was that the Thirteen Colonies were obliged to pay taxes to the British Crown without being represented in the British Parliament by their own elected deputies. The slogan of the founding fathers of American democracy at the time was “No taxation without representation”. Nowadays it could be inscribed on the flags of the Yellow Vests, the movement that opposes additional taxation by Macron’s government. The government represents the interests of the Brussels technocrats, i.e. bankers and large corporations, and not those of the French people. Brussels does not allow holes in the state budget, does not tolerate anyone who does not abide by its fiscal guidelines. The French were persuaded that they retained sovereignty, although for years the princes from Brussels (commissioners of the revolution against sovereignty of states – Timmermans, Juncker and others) have been setting the course for France. Although the French deputies allegedly represent their people in the European Parliament, they are not proposed directly by the people, but by the parties. Most voters have swallowed the bait for years that the parties act in their interests, but even the dimmest dummy gets wise over the years. Voters in the 21^st century must not be treated as they were in the 19^th: the first cracks in the beautiful image of the handsome president, whom the German media describe as “visionary”, appeared when he reduced property tax on real estate. French citizens could not swallow it. Though the move was supposed to keep money in the country, Macron was denounced by low earners as the “president of the rich”.

The riots on the French roads are mainly due to the standard of living. The more abrupt the drop in the standard of living, the more violent the riots. What happened in a welfare state that was Greece 20 years ago also seems to be a future scenario for France: a gradual impoverishment of society until the outbreak of the next social and political revolution. Even now, 3 million unemployed people in France live on the subsistence minimum, and the proponent of Merkel’s refugee policy and ex-investment banker from the Rothschild Bank, who strangely enough turned into a quasi-socialist, claims that in France “just walking across the street is enough to find a job”.His idea of additional taxation of the fuel was the last straw that broke the camel’s back after thirty, forty years of the failed politics of the Paris elites. The commuters from the outskirts of the city and the losers of globalisation in the province who spend a large part of their income on fuel would hardly make ends meet with the new prices. The lord of the Élysée Palace doesn’t care. He orders a porcelain set for 500,000 million eurosand the Élysée’s budget of 109 million euros a year is three times higher than that of the German Chancellery. Continue reading →

The fact that Saudis want to control Yemen and the Chinese are increasing their presence in Myanmar is a preparation for the conflicts that may soon flare up. It is about securing the flanks.

The war in Yemen is being waged more and more brutally by the Saudis. The weapons of the Saudi army supplied by the USA hit the civilian population more and more often. The central bank moved from Sanaa to Aden by order of the Saudis prints money in heaps, so that the population cannot afford food due to galloping inflation. Why genocide? It is not about ideology, or religious differences between Huthis (Shiites) and the rest of the people of Yemen (Sunnis). One of the reasons can be oil. The reserves of black gold discovered in the northern province of Yemen, Al-Jawf, are said to be larger than the Saudi reserves.A bargain for Saudis. But the most important thing for them at the moment is to prepare for the direct conflict with Iran. If war were to break out, Iran would block the oil transit bottleneck in the Strait of Ormuz. Saudi Arabia therefore needs to secure access to the 27 miles wide strait between the Red Sea and the Gulf of Aden and thus its oil exports. The road is called Bab al-mandeb (Gate of Tears) in Arabic. If it is also blocked by enemies of the Saudis, there will certainly be many reasons for Riyadh to cry. Continue reading →

The end of the EU and the Balkans as China’s foothold in Europe

Though the end of the European Union is inevitable, the proponents of a further integrated or federal superstate are busy making a last effort to achieve their goal. The opposition against the project is mounting with every day. Europe is suffering from economic stagnation, and is facing a demographic calamity.

The pro-European establishment’s last hope was the newly-elected French President Emanuel Macron who was to revive the economy and integrate the European Union under French leadership. Gefira was of the opinion that all these expectations were misplaced. The once great nation is broken beyond repair. France’s problems are much worse than those of Italy. Though Italy has a higher debt-to-GDP ratio than France, France has a larger budget deficit, and the difference is that while Italy has a trade surplus France has a trade deficit, so the country cannot pay for its imports.

While the Italian “populist” Mateo Salvini is earning the nation’s respect, Emmanuel Macron’s popularity is at a historic low. All of France is engulfed by riots, civil unrest and looting. In city after city, village after village, protesters have been clashing with the police for weeks now while President Macron has nothing to offer to appease them, unless he violates the budget deficit boundary of 3%.

Like the Soviet Union once was, France is a sizeable social-multicultural experiment, and like the empty shops in communist countries, the demographic changes in France are visible in every section of the society, but nobody dares to name them. Once the whole world saw that the French team playing at the FIFA World Cup was made up of almost exclusively Africans, and even on Twitter Africans boasted about it. Yet, the French establishment insisted that those Africans were genuinely French. Dissenters were branded as racists or Nazis. Continue reading →

Guest post: By André ten Dam and Jean Wanningen

Abstract

This article reviews an alternative option for Italy to devalue in order to deal with its economic problems, while keeping its EMU membership and the euro as its currency. Referring to the Keynes’ views, the crucial role of the rigid one-size-fits-none euro in the Italian economic malaise is analyzed. And the reason is explained why Italy needs a devaluation, in particular versus Germany. Because a euro-exit with re-introduction of the lira currency by Italy will be accompanied by several complications, disadvantages and risks, The Matheo Solution (TMS) is presented as a more suitable, simple, smart and elegant alternative. Via implementing a national unit of account for every individual euro country, the ‘lean & mean’ TMS model introduces monetary flexibility regarding exchange(value)-rate adjustment and interest rate differentiation on a national level within the Euro Pact. Keynes probably would have considered the TMS model himself, if he had the time to live. Although in 2010 intended for a Eurozone-wide implementation, Italy, then regaining the crucial parts of its monetary sovereignty, can implement the TMS model unilaterally as well. After devaluing the newly introduced Italian unit-of-account the Italian economy, employment and state finances will instantly improve.

Since the introduction in 1999 of the common European one-size-fits-all euro-currency in Italy, the third euro-zone economy is struggling. Instead of the promised growth and prosperity the common currency has thrown the country into a situation of stagnating economy, structural high unemployment and (as a consequence) deteriorating state finances. And the outlook for the future isn’t very bright either.

In this downward spiral well educated youngsters (the Italian human capital) move abroad, industrial production move to other countries with lower labor costs and the Italian banking system finds itself in a state of collapse.

Two relevant questions are:

1. What is the main cause of the Italian troubles?
2. What could Italy do to turn the disastrous tide?

Keynes lends a helping hand. Continue reading →