Greece

Greek conservatives win in landslide

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Seems that sustained high unemployment and forced belt-tightening by Brussels has finally led the Greeks to elect a conservative government – New Democracy – that wants to lower taxes and invest more in the nation. Prime Minister-elect Kyriakos Mitsotakis party is expected to win between 155 and 167 seats in the 300 member parliament.

 

Juncker focuses on the wrong climate

There is an irony to EC President Jean-Claude Juncker promising to spend €1 in €4 of the EU budget on climate mitigation. Worse he used 16yo Swedish climate school strike activist Greta Thunberg as the pawn to justify it. €1 trillion will be spent annually through 2027. It is for their future after all!

Last week CM debated a former client who tried to justify teachers using WMO data in their studies of teenage students on climate. WMO is a part of the U.N. which has been embroiled in so much data manipulation, scandal, lack of governance, unethical conduct and conflicts of interest as to beggar belief. So kids are being indoctrinated if the scholastic standard is the WMO.

Has Juncker considered how his climate plan will alleviate stubborn poverty and anemic economic growth?

EU poverty or risk of exclusion in 2017 stood at 22.4%. So 1 in 4 EU-28 member state citizens are struggling. In Greece it remains high at 35%. In 2007 poverty in the EU-28 was 16%. Even poster child Germany has gone from 16% to 19% in the same period. Macron’s yellow vests are protesting at 17.1% poverty vs 13% in 2007. In 2007 there were 78mn at risk of social exclusion. In 2017 there were 114mn.

The U.N. has called for “no poverty” in 15 years. The EU subscribes to this nonsense. While poverty may have drifted from the post GFC peak of 24.8% in the eurozone, 36mn extra people are unable to afford to heat their homes, afford a colour TV or eat meat, fish or chicken once every two days. These are the EU metrics on poverty. So how does spending €1 trillion per annum to mitigate climate change sit with a growing number of constituents dying to see blazing sunshine bask upon their economic climate?

Retail electricity prices across Europe are up 23% in the last decade. In Germany +39%. Spain +47%, Portugal +50%. Sweden +76%. France +40%. This is what happens when a growing amount of renewables are thrust on the grid. The countries with far lower renewables targets, like Hungary, have seen electricity prices fall. Who’d have thunk?

EU GDP growth has been slowing for the last 5 quarters and expected to slow to 1.1% in the coming quarter.

The EU claimed a 6.6% unemployment rate in Dec 2018. An update is expected on March 1. Is that number realistic if the poverty rate remains so high or is it a reflection of low paying rubbish job opportunities? Greek unemployment is north of 18% and Spain at 15%. Part time employment has grown to 20% from 15% over the last decade. In the Netherlands almost 50% of work is part time.

December 2018 EU industrial production fell 4.2%YoY. Ireland fell back 19.8% and Spain -6.7%. Hardly positive readings.

So instead of promising teenagers a green future, Juncker would find it far more sensible to focus on alleviating the chronic youth unemployment in Europe which remains around 19%. At least Thunberg is likely to skip the unemployment queue by landing a cushy EU job when she graduates unlike her fellow Swedish schoolmates who will face 18% unemployment.

What’s the point of listening to kids pleas to save the planet when the unelected overpaid bureaucracy in Brussels won’t even be able to provide them with a sustainable career to enjoy it? No doubt the kids will realize this folly when they grow up in the real world.

Actions speak louder than laughs

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While the mainstream media has blown much hot air about the UN GA audience laughing at POTUS during his speech, where was the very same audience backing the poster boy of virtue signaling and globalist politics? Here is a picture of Canadian PM Trudeau addressing the UN General Assembly during the Nelson Mandela Peace Summit on Sep 24th. Worse, a whole section of them are on their mobile phones. As impolite as deleting/sending emails during the speech of any world leader (or anyone for that matter) is, at least being laughed at suggests the audience was paying attention to the content, as ridiculous as anyone may have made it out to be. As much as Trump’s boasting and glass jaw were on full display, it was standing room only, because love or hate him, his words have global ramifications.

While French President Macron might have sounded sensible castigating Trump’s America First view as fanning the flames of nationalism around the world, perhaps he might have reflected on the shift toward populist parties across Europe occurring well before either took office. Macron should remind himself that anti-EU leader of the far right Front National, Marine Le Pen, achieved twice the vote ever achieved by her party. 35%.

People may not have noticed but Sweden’s newly appointed PM Stefan Lofven has lost a no confidence motion yesterday. The right leaning Sweden Democrats achieved the fastest growth in the Sep 9 election, taking almost 18% of the vote from 12.9%, holding the balance of power despite the establishment is reluctant to wed . All the while,  3 weeks have passed and a no confidence motion has occurred.

Italy is now run by an anti-EU M5S & anti-immigrant League coalition. Austria voted in a EU-skeptic party led by a 32yo Chancellor Sebastian Kurz. The Brits voted for Brexit. The Dutch awarded the fastest growing share to platinum haired Geert Wilders’ Freedom Party. The Hungarians and Polish have openly told Juncker where to stick his views on forced migration. Even Chancellor Merkel had the worst showing of her party in 70 years as the anti-immigrant Alternative for Deutschland took 13% of the vote, achieving 94 seats in the Bundestag mostly at the expense of Merkel’s CDU & former European Parliament President Schulz’s SPD.

Poor old Justin Trudeau had a member of his own party, Leona Alleslev, defect to the Conservatives stating she was ‘concerned about the government’s handling of the economy.’ It is one thing for the opposition to berate the government for poor stewardship but it is deeply embarrassing to lose people from one’s own party due to a lack of confidence.

So yes, we can collectively laugh at Trump for his bluster, chest beating and itchy Twitter fingers, but one would hope the mockers at the UNGA would glance in the mirror and realise that their constituents are becoming ever more disillusioned with the establishment they represent. These are the same people that bashed the president for calling out their lack of commitment to NATO, with 23 nations well behind promises made of their own volition 12 years prior. Could it be that for however abhorrent they might find the current leader of the US, he is calling many out on their failure to hold up their end of the bargain?

At the end of the day, no matter what one’s personal feelings for Trump may be, we have to live with his decisions. He is far from perfect. Yet instead of the predictable constant drone of noise following his speech, perhaps countries would be better off putting aside personal differences. Rather than crossing fingers in hope he maybe impeached so they can go back to the status quo and live the very lies he has exposed in his almost 2 years in office. Now that type of hypocrisy is truly laughable. Indeed the very fact that out of touch politicians can mock in such a manner shows just how badly they stink at relaying the very messages they think resonate with the public.

EU – 1.3m abortions, 5m births p.a.

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Eurostat statistics on abortion reveal that Germany, France, UK, Spain and Italy alone terminate a combined 760,000 fetuses per annum. Across the EU-28 there are 1.25mn terminations. Without getting into a debate on abortion rights, the pure statistical number points to 20.4% of fetuses never make it out of the womb alive. Every. Single. Year. At that rate over 10 years that is 12.5 mn children that could have added to EU population sustainability do not occur but the EU seems to think embarking on mass migration is the only solution to plug the gap. Is it? Ironically child support is one area the EU is happy to cede control to individual Member States.

The fertility rate across the EU-28 is now 1.58 children per woman, flat for the last decade and down from 2.9 in 1964. Demographers suggest that a fertility rate of 2.1 is required in developed world economies to maintain a constant population (in the absence of any migration). The number of live births in the EU-28 peaked in 1964 at 7.8 million. In 2017 this had fallen to 5 million. There was a brief period (2003-2008) when live births in the EU-28 started to rise again, returning to 5.5 million by 2008 but the GFC sent it down again – as economic hardship tends to cause a decrease in births. So are economic incentives too low to cause a rebound?

France has the best incentives for children and the highest birth rate inside the EU at 2.0 up from 1.7 in the 1990s. Germany is around 1.4 drifting from 1.6 in the 1990s. The lives for child rearing French are eased by cheap health care, inexpensive preschools – for infants as young as 6 months old – subsidized at-home care and generous maternity leave. Mothers with three children can take a year off of work – and receive a monthly paycheck of up to €1,000 from the government to stay home. Families get subsidized public transportation and rail travel and holiday vouchers.

In order to stop the declining working population over time, imagine if Europe hypothetically put the onus back on consenting couples to take responsibility for their actions and makes abortions harder to access without compulsory consultation over options? Why not graphically show the entire process to get some sense of reality for both parties? You can gross yourself on this link.

Perhaps, in today’s electronic world, automatically deducting child support from fathers that run from responsibility might make sense? Why should the state pay for others’ lack of accountability? Even if the child is placed in foster care, why not wire child support to foster parents indirectly via the Ministry in charge of its administration? The population crisis is not going away in Europe. Why not provide more incentives to married/same-household couples?

Mathematically speaking the numbers are huge. Imagine if the million-plus fetuses every year had a vote to be raised with foster parents as opposed to being terminated, what they would choose? Consider the €23bn Merkel has spent on mainly economic migrants in the last 2 years being put toward preventing 200,000 abortions in Germany over that period? €115,000 to avert each one might have been better spent. That is a huge sum of money period.

CM is not advocating control over the womb but surely transparency in policy over individual responsibility is not a bad thing with respect to many issues, not just abortion. What level of economic incentives are required to prevent some couples/women choosing to terminate? Surely that plays a part in deciding to terminate. Consultation services with respect to the subject don’t seem too commonplace or at least structured in such a way as to prevent them.

According to Eurostat, since 1964 the divorce rate in EU-28 equivalents has doubled and the marriage rate has halved. For every eight marriages in 1964 there was one divorce, now there is one divorce for every two marriages.

The proportion of births outside of marriage now stands at 40%, from 27% in 2000 to less than 7% in 1964. 8.8 % of the EU-28 population aged 20+ lived in a consensual union (de-facto). In Japan the number of births out of wedlock is 25% according to the MHLW. The dynamics of the traditional nuclear family are fading.

51% of the Swedish population is now single household. 51%! While some is attributed to an aging population, 19 of the EU-28 members has a single household ratio of over 30%. 12 over 35%. By way of comparison, Japan’s single household ratio stands at 34.6% from 27.6% in 2000.

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To further analyse the new ways of living together and to complement the legal aspect, statistics on consensual unions, which take into account those with a ‘marriage-like’ relationship with each other, and are not married to or in a registered partnership with each other, can also be analysed.  Sweden (18.3 %) has the highest rate followed by Estonia (16.4 %), France (14.3 %) and the lowest in Greece (1.7 %), Poland (2.1 %), Malta (2.5 %) and Croatia (2.9 %).

Is employment a factor?  It is mixed. Eurostat reported in Germany, the fertility of non-employed women has increased and that of employed women decreased, while in Spain, the opposite occurred; in Greece, the total fertility rate (TFR) of non employed women fell below that of employed women, changing from a positive differential of about 0.2 average live births.

Is education a factor? Apart from Nordic countries (Denmark, Finland and Norway), Portugal and Malta, in general, women with lower education had higher TFR between 2007 and 2011. Eurostat state the fertility of women across the EU over the same period with a medium level of education dropped by about 9%, while the decrease for women with high or low education was less significant.

Eurostat argues that economic recessions have correlation to falling child birth rates. Apart from the direct impact of economic crises at an individual level, the economic uncertainty that spreads during periods of hardship seem to influence fertility. From this point of view Eurostat believes the duration of a crisis may play an important role and, the duration and the depth of the current recession are unprecedented in some countries. The agency states,

The expected relationship is that negative changes in GDP correspond to negative changes in the TFR, possibly with some delay, thus showing a high positive correlation at particular lags. The correlation with the TFR is relevant in Spain and Latvia without any lag; in Bulgaria, Poland and Romania with one year of lag; and in the Czech Republic, Denmark, Estonia, Greece, the Netherlands, Finland, Sweden, Iceland, Norway and Croatia with two years of lag. Taking the overall average across countries, a change in GDP is mostly positively correlated with a change in the TFR within about 19 months.”

Do we cynically argue that stagnant child birth rates aren’t just a factor of societal changes? Perhaps a truer reflection on the higher levels of poverty in the EU since GFC and the harsh realities for a growing number of people behind the growing levels of populism who are suffering greater economic hardship than statisticians are presenting to the political class? Hard decisions must be made before they are made by external factors.

Slovenia slaps the EU too

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Slovenia has joined the list of populist movements. In 2000, there were 4 countries in the EU that had populist coalitions/majorities (Lithuania, Latvia, Switzerland & Austria). Scroll forward to today we have 15 (the previous 4 countries + Poland, Norway, Czech Rep, Italy, Slovenia, Hungary, Greece, Slovakia, Crete, Bulgaria, Romania). Neighboring Bosnia and Serbia are also populist led. We shouldn’t forget the in the populist/nationalist party surges in The Netherlands, Germany and France . Perhaps more amazing is that the EU still isn’t getting the message, most highlighted by the push to get the President of Italy to put in charge a non-eurosceptic former IMF employee as PM. That’ll work.

So to Slovenia’s election. The Slovenian Democratic Party (SDS) topped Sunday’s election on 25%, handing the anti-immigrant party 25 seats in the parliament. Center-left LMŠ, led by comedian and political satirist Marjan Šarec, came in second on 12.7% (13 seats), and the Social Democrats third on just under 10% (10 seats). SDS leader Janez Janša acknowledged forming a governing coalition will be difficult.

Juncker typified all of the arrogance that has propelled so many anti-establishment parties to power. He said, “Italians have to take care of the poor regions of Italy. That means more work, less corruption, seriousness.” Stereotyping rarely helps. Juncker also made clear that Italy’s problems are not the EU’s fault.

Time and time again, when studying poverty within the EU, the overwhelming number of countries inside the bloc remain worse off than in 2008. Growth rates remain anemic. If you were to look at a map of the floodgates of illegal immigration (which Deutsche Bank published) it isn’t a surprise that the local populations are voting for those governments that will seek to look after the citizens first. So before casting aspersions on a growing number of EU citizens’ assessment of the human rights of asylum seekers, the reality is that the socialists within the EU are clearly utterly dreadful at messaging and even poorer in execution. Then again Baroness Thatcher warned them of that in 1990.

Austria proves again why the EU needs to listen more and talk less

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God gave us two ears and one mouth so that we’d listen more and talk less,’ so the old saying goes This is what the EU gets for trying to bully its member states. It wasn’t long ago that EU President Jean-Claude Juncker was telling Austrians that if they democratically elected Norbert Hofer of the right wing FPO then the EU would remove Austria’s voting rights and cut off any transfers. Well the Austrians have voted for a conservative anti-immigrant party (which wants a programme to get immigrants to assimilate with the local culture) with a 31yo leader, Sebastian Kurz. His People’s Party garnered 31.4% (+7%) of the vote with the far-right wing FPO coming in second at 27.4% and incumbent Social Democrat Party coming in third with 26.7%. The Greens will probably not make the cut off of 4% to make a party, So once again the EU has had yet another major repudiation of its totalitarian ideals.

CM has been making the point for ages that forcing one’s beliefs onto others must be done in a way that listens to the other side. Otherwise it delivers results like Trump. It seems the EU hasn’t learned a thing.

So what have we had?

-Le Pen garnered 1/3rd of the French vote (double the best ever achieved by Front National),

-the far right Freedom Party’s (FPO) Norbert Hofer still managed 46% in Austria farcical re-run presidential election),

-Geert Wilders’ 25% increase in seats for the anti-immigrant PVV in The Netherlands,

-the surge in the Sweden Democrats to the top of the recent polls, Elections in 2018.

-Italy’s referendum which turned into a backdoor vote to oust PM Renzi. Elections in 2018 likely.

Brexit (although PM May is handling negotiations in true British efficiency – Fawlty Towers ring a bell?),

the Swiss handing back a 30yr standing free ticket to join the EU,

-the AfD in Germany getting 13% of the vote (Merkel may have won but it was her party’s worse showing in 7 decades)

…these don’t look like promising trends for an EU which is already badly listing. Despite ample warnings the EU refused (and still refuses) to change its course or exercise due care. It just issues more threats.

While the left openly voices its rage at these ‘right-wing’ parties growing in support, they never bother to seek reasons why. The right are generally just dismissed as racists, bigots or worse.  Major party loyalty has never been worse. The fabric of the loyal party voter base is wearing thinner. Take Australia’s One Nation Party led by Senator Pauline Hanson. The popularity of the mainstream LNP and Labor Parties is at record lows. One Nation is now 10% of the vote from 2% several decades ago. While some parties may claim their loyal base has abandoned them the stronger case to be made is the clear shift of the parties away from their once faithful constituents. Why?

Incumbent governments seem to cower at receiving negative news from the 24-7 polling cycle that is social media. Being careful to avoid inviting attack, they pander to all of the socially acceptable agendas – climate change, gender fluid bathrooms, laws clamping down on free speech, open borders and afffirmative action.

However political correctness is clearly not the answer as these results across Europe and elsewhere show. People are sick of the brow beating by socialist activists. Tired of the constant protests and social justice bleating. The NFL might find that most of its fans are against police brutality but they aren’t wanting a weekly lecture in grievance politics with the price of entry or their cable TV channel. Growing weary of the idea that it is ‘free speech’ and anything against those ideals are deemed ‘hate speech’. It is not to deny some positions are not necessarily palatable but in the marketplace of free speech, ridiculous positions can easily be disproven. Better to give extremist voices a chance to talk and invite public opinion on them at their own peril. Shutting it down forces it underground., making it inherently more dangerous.

Too many mainstream political parties are moving off the policy reserve that defined them so their once loyal followers are actively seek ones that will. While Hanson’s One Nation or Senator Cory Bernardi’s Australian Conservatives may not tick every box to existing LNP voters, they cover enough of the positions that matter to them that they’ll tolerate some of the more out there ideas. It is not uncommon to hear the left complain at One Nation’s is growing popularity at the expense of the Greens but it is a devil of their own making.

So will the EU listen to the Austrian call? Will it pay attention to the Hungarians who voted over 98% against accepting forced migrant quotas? Think through the logic. If you were an asylum seeker, would you think your chances of unincumbered settlement would be best placed where 98.4% of the population doesn’t want you? It is irrelevant whether we think the Hungarians are insensitive brutes not to extend a welcome to those that are legitimately in need. It is their country and their democracy has spoken. If Brussels assumes to dictate to Hungary how it wishes to protect its culture and whatever it holds precious, why shouldn’t the EU have the same rights to enforce income tax, housing benefits and anything else it sees fit? Of course it is a preposterous notion.

It will not be long before the EU will be front and center on Greece. Let us not forget that the EU colluded with Goldman Sachs to ‘fiddle’ the accounts to make Hellas much prettier optically than it was. Was this pig without lipstick it wouldn’t have gained acceptance to the club. So the EU is not in a position to claim innocence over a deliberate ploy to ram-road the Greeks into its federal state yet have no qualms treating it with disdain. Talk about double standards.

In all seriousness the treatment of the Greeks by the EU is despicable beyond words. So for all of the left’s blind love for the EU and its socialist agenda, 36% of Greeks live below the poverty line and 58% of the youth are unemployed. So for all of the EU’s shared sense of purpose and equality, that means many can’t access affordable healthcare because it is generally provided by corporates and when you lose a job you lose the healthcare. This means many are forced to use A&E of major hospitals which are now overcrowded and understaffed as more doctors are leaving to seek better fortune for their services elsewhere.

If that wasn’t enough, mothers who had given birth were being restricted from taking their new-borns home if they couldn’t pay the hospital fees. While the government has banned this practice they have introduced new laws to allow the seizure of assets (e.g. homes) if debts are not settled.

Shortly, the Greeks are coming up for discussion over its debt position and austerity. With just months left before Greece’s latest lifeline expires, officials directly involved in the country’s bailout say they don’t have the stomach for contingent aid program when the current one expires in August 2018. While the EU and Athens are battle worn after 7 years of this knife edge rescue,  Greece will need to show it can go it alone but it’s eurozone creditors will be reluctant without further strings attached.

Here is betting that the EU doesn’t heed the lessons that have been ringing loud and clear for years. Sincerely hoping Greece leaves the EU and lets market forces revive its economy. Better to die on its feet than live on its knees.

NATO Facts and why Macron’s arrogance is no better than Trump’s

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While social media splashes around a US contribution to total NATO spend of 73% it in reality is a third of that. Only the USA and UK spend over and above NATO commitments as outlined in the chart above. Even the Greeks meet half the requirement! Germany is below not only NATO guidelines but the media would never tell you that. Trump has a point. In fact the reason much of the military spending numbers below the requirement stems more from inefficiency than anything else.

What many fail to understand is that salaries and benefits (housing, education and healthcare) for military staff tend to consume 3/4s of the budget. Procurement is a dog’s breakfast and influenced by age of fleets, battalions, interoperability and so forth. While NATO isn’t exactly group buy the us wins by default of having access to the best cost/performance equipment allowing better bang for the buck. Little Estonia can’t get the same economies of scale.

The “contribution” (click here) question is clouded by two things. Under Obama, the US has cut its NATO contribution from 5.29% of GDP when he took office to 3.6%. NATO Europe had met the minimum expected contribution of 2% but this has slumped from the tech bubble collapse of 2000 to 1.47% today which has meant the only thing keeping NATO’s overall budget above target has been Uncle Sam!

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So once again social media muddles a message. It takes 10 seconds to go on NATO’s website and fact check.

Instead the media is more focused on pointless clickbait on whether Trump can hold Melania’s hand without being swatted away or who won the vigorous handshake contest – he or Macron. In fact Macron’s deliberate snub Of Trump when he met all the leaders spoke volumes. He made no conscious effort to shake his hand first. He made a point of sucking up to his EU cronies first and spent needless time making worthless chitchat before even acknowledging the leader of the strongest nation on earth. We shouldn’t be surprised. Best have Trump inside the tent p1ssing out than outside p1ssing in.

Even if they want to delegitimize Trump they play a silly game. Much like business leaders being bullied on social media to leave Trump’s business council (Uber chickened out), the EU plays a dangerous game of isolating Trump. If they want to prevent him from being the “unhinged” orange buffoon they think he is they’d do much better to be welcoming, accommodating and flattering his eminence. That way they can bring balance and find common ground. They show no signs of even beginning to try. By snubbing him they shouldn’t be surprised if he acts independently. Yet Macron acts no better than Trump and the media lavishes praise on the exact same antics they crucify The Donald over. Typical double standards.

Be careful what you wish for! The world needs a healthy US and stunts like this only fray the lines of trust and partnership further. Sure, the America First policy stance is affronting but if the EU want to expedite the process then keep up the Trump bashing. It doesn’t mean Trump bumping (hey Trudeau did it in Canada to a female member of parliament) other dignitaries shows good character but he knows he’s being ridiculed and the media sees it as their only form of attack. The problem is they forget 75% of Republicans STILL approve of his job performance.  He may only be doing a C+ on performance in office but he isn’t anywhere near the F- portrayed by the media.