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Julian H. Stacey's Blog 2011-12-11

This is: http://www.berklix.com/~jhs/blog/2011-12-11/

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EU's kill London tax is vetoed

• Irresponsible Euro-land Politicians Fail To Sponge Off Britain

  • Euro-land tried Friday 2011 12 09 to sucker Britain to pay a financial transaction tax to cover European politicians' incompetence to manage their (not Britain's) Euro.
  • Britain as a centre of world, (not just European) finance has a much higher dependence & sensitivity to income from finance business than other European countries; the deterrence to transacting business in Britain would have hurt.
  • The proposal to tax Britain was doubly unfair as Britain was never in the Euro.

• EU Transaction Tax vetoed

  • David Cameron ( British Prime Minister), vetoed the proposal.
  • • Innocents making transactions would have been impacted.
    • Speculators could have just relocated elsewhere.
    • Operators or manipulators outside the EU could have continued.
    • Frankfurt & Paris would have been delighted to burden the London market.
    • Continental European politicians would have further provoked Euro-sceptics, extorting tax to pay for their Euro incompetence.

• Euro National Fraud & Lies

  • In Germany many have taken a turn as scapegoat: Ireland, Greece, Portugal, Italy, Spain, American or any/all possibly Anglo bankers, eg Britain, etc.
  • Fools believe the blame game, despite it's obviously European politicians to blame, who:
    • Authorised printing & spending of excess Euros.
    • Had no guts to automatically on principle distrust all fellow countries including themselves.
    • Failed to insist from the start on automatic mutual cross checks manned by nationals from other Euro countries
    • Failed to provide contingency mechanisms for dealing with cheating/failing countries.
    • Failed to write an exit mechanism into the Euro.

• Britain Voted Alone - Why ?

  • Doesn't mean it was wrong, more like attacked by all other shark in a feeding frenzy ;-)
  • The big countries wanted Britain's (anyone's) money, so they'd pay less to bail out Greece, + there's market rivalry between Frankfurt [& Paris?] & London.
  • Remaining smaller EU countries outside the Euro buckled to German/French pressure (some subject to ratification by their parliaments, If ;-) Probably not much incentive to stand against bigger Euro countries, especially if no big financial businesses for them to worry about being scared away by such a tax, plus they'd have benefitted from London being soaked to help stabilise Euro trade, even if neither they nor Britain are in the Euro.
  • Germany is no paragon of financial rectitude, failed to detect or deal with Greek debt earlier, trying to dump on non Euro Britain, & has more in common with Greece than one might guess Half the EU inc. Austria, Belgium, Germany, Italy, and Greece did not qualify to enter the Euro under the original tight Maastricht criteria, which were then loosened.
    Britain did not join, but I recall it Did qualify for the original tight criteria.

• URLs

  • https://en.wikipedia.org/wiki/European_Economic_Community
  • http://www.guardian.co.uk/politics/reality-check-with-polly-curtis/2011/dec/12/debt-crisis-conservatives
  • Toytown
    The New EU Treaty: 27 countries agree, not Britain - Will the UK leave the European Union? My contribution:

    ExpatUSA asked "why would people who were born decades after the decline of the
    British Empire still be affected by it?"
    
    The Boston Tea Party was 1773. The USA Tea Party is current. The 
    British Empire effected significant help in WW2 (read Churchill's 
    'The Gathering Storm' etc).
    
    WW2 is still living memory for some in Germany & Britain & EU
    etc.  After WW2, they saw the WW3 avoidance mechanism of the French
    German Coal & Steel community grow to the Common Market, to todays
    ever bloating European Union.
    https://en.wikipedia.org/wiki/European_Economic_Community
    
    Periodically Germany etc push for faster & tighter union & more EU
    laws, inc. for Euro, Others inc. Britain periodically resist the bloating EU.
    
    Some still wish they had their DM.  E & W Germany economies
    were damaged by the 1990 1:1 West/Ost Mark common currency, as the
    East didn't compete at 1:1,  so W. Solidaritaet-Zuschlag paid for E.
    German redundancies etc. http://de.wikipedia.org/wiki/Mark_%28DDR%29
    
    Germany & Greece etc are now shackled 1:1 with the Euro, no exit
    clause in Euro for Greece to return to the Drachma to devalue to
    compete (aka British Sterling 1967 & 1992),
    
    EU (especially Germany as lead taxpayer to sponsor the `PIGS'), 
    wanted Britain to pay a transaction tax to help support the Euro
    Britain was not part of.  http://www.berklix.com/~jhs/blog/2011-12-11/
    

• Solutions

  • Don't believe Euro-land politicians who blame other than themselves or their incompetent colleagues, who failed to insist on checks.
  • Push for laws [in Europe & USA etc] to make it a criminal offence for managers & directors to continue contracts to receive big bonuses with no risk of similar substantial loss if their gambles fail. One sided bonus contracts encourage irresponsible corporate gambling with giant personal bonuses paid if the gambling manager wins, & a tax payer subsidised bail out for large companies deemed "too big to fail" if the gambling manager loses.