Thursday, June 30, 2011
Banks need new 'social contract' says Bank of England's Tucker
Banks must redraw their "social contract" with society if they are to move on from the financial crisis, according to the Bank of England's Deputy Governor.
IMO: I just said that. It is only too true, and that is a matter that the Tories, particularly Osborne, are presumably already aware of. And holding more collateral as suggested is NOT ENOUGH. New legislation, like a Tobin tax, may reduce likely incursions into the wallets of legitimate taxpayers by such as 'bonus Bob' Diamond. This could help, even though admittedly there is often a verifiable and occasionally sound 'reason' for bonuses. I wonder if more transparency and accountability could make the bonus situation fairer at least.
IMO: I just said that. It is only too true, and that is a matter that the Tories, particularly Osborne, are presumably already aware of. And holding more collateral as suggested is NOT ENOUGH. New legislation, like a Tobin tax, may reduce likely incursions into the wallets of legitimate taxpayers by such as 'bonus Bob' Diamond. This could help, even though admittedly there is often a verifiable and occasionally sound 'reason' for bonuses. I wonder if more transparency and accountability could make the bonus situation fairer at least.
Wednesday, June 29, 2011
The Euro - a Tobin tax is needed
China's deep pockets are momentarily keeping the euro supported. For months, whispers of "Asian official buying" have permeated markets when the euro fell below certain levels. That talk has kept euro/dollar hemmed into a tight seven-cent range since late May, even as fears of a Greek default make traders disinclined to hold the single currency. The market is inclined to sell the euro on rallies whereas China wants to buy it on dips.
Market Watch, like many others, believes the euro will break up and suggests 6 likely triggers.
IMO: A Tobin tax is needed throughout, and measures can be taken to make it stick - if the politicians want to do so. Other stricter measures, like a stronger act than Glass-Steagall, will help matters.
IMO: The Greek economy does not meet the ideals of the European fat cats. Not enough money can be filched from the poorer of the Greeks to put matters straight. So trying to take even more money to further line the pockets of the bankers is not the answer. The present austerity measures accepted by the Greek politicians are only window dressing. Creative accounting seems to be the only easy temporary answer for the EU. But NONE of these people are living in the real world - none of them, including the Greeks, are poor at all. I'm speaking from India and I know that much of the world faces real poverty every day.
Market Watch, like many others, believes the euro will break up and suggests 6 likely triggers.
IMO: A Tobin tax is needed throughout, and measures can be taken to make it stick - if the politicians want to do so. Other stricter measures, like a stronger act than Glass-Steagall, will help matters.
IMO: The Greek economy does not meet the ideals of the European fat cats. Not enough money can be filched from the poorer of the Greeks to put matters straight. So trying to take even more money to further line the pockets of the bankers is not the answer. The present austerity measures accepted by the Greek politicians are only window dressing. Creative accounting seems to be the only easy temporary answer for the EU. But NONE of these people are living in the real world - none of them, including the Greeks, are poor at all. I'm speaking from India and I know that much of the world faces real poverty every day.
Tuesday, June 28, 2011
The Spratleys
For many years I have pointed out the importance of the Spratleys to the Phillipines.
As usual current news reports from China suggests that China is behaving in a correct way in the area, which seems shamefully far from the truth.
Now consider China's offer to "help" the EU, with particular reference to Greece. It has frequently been pointed out that if Greece "defaults" to some dodgy German banker then that is one thing. But to default to a major country like China, directly or indirectly, is another. In this context, we could soon see all the Greek women being used as "comfort women" in an offshore Chinese casino in Laos, and all the men being used to do 24-hour "World of Warcaft" work as 'gastarbeiters' in some Chinese hell hole. Then Greece would be peopled with out of work Chinamen who could live the life of Riley.
Now Bloomberg reports "Greek Police Fire Tear Gas as Strike Overshadows Budget Vote". I can understand why.
As usual current news reports from China suggests that China is behaving in a correct way in the area, which seems shamefully far from the truth.
Now consider China's offer to "help" the EU, with particular reference to Greece. It has frequently been pointed out that if Greece "defaults" to some dodgy German banker then that is one thing. But to default to a major country like China, directly or indirectly, is another. In this context, we could soon see all the Greek women being used as "comfort women" in an offshore Chinese casino in Laos, and all the men being used to do 24-hour "World of Warcaft" work as 'gastarbeiters' in some Chinese hell hole. Then Greece would be peopled with out of work Chinamen who could live the life of Riley.
Now Bloomberg reports "Greek Police Fire Tear Gas as Strike Overshadows Budget Vote". I can understand why.
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