Thursday, June 14, 2012

Machen Sie meinen Tag!

http://www.forbes.com/sites/joelkotkin/2012/06/11/is-perestroika-coming-in-california/


Some news from closer to home – The Peoples’ Republic of California. A polity proving over the last decade that in a democracy, you sure get the “leaders” you deserve. The Eponymous Gray Davis, the termed out Terminator – he of the execrable English - and now for a second stint at breaking the greatest economy in the world, the diabolical ex-Jesuit, Jerryiatric Brown. A man who has single-handedly unpicked the life-work of his father. As I have said elsewhere, a sovereign State that can give you Intel, HP, Google, Apple, Facebook, Stanford University, Broadcom, Cal, UCLA, Yosemite, the Redwoods and the Hoover Institute cannot be all bad (we’ll leave “Hollywood”, Richard Nixon and O J Simpson out of the reckoning for the moment!). Plus of course USC and Tommy Trojan.

Joel Kotkin is a Dem and always worth reading. He knows the State well as does Victor Davis Hanson from his Stanford tour d’ivoire.


El pobre Mariano. Bad enough his banks are all busted to bits and now wards der Kanzlerin und ihrer BuBankers, bad indeed to have Cristina de Kirchner in Spanish America pinching all his Repsol stock, but to have Dodgy Dave (for it must be he), fresh from poking the Spaniards in the eye with the Earl & Countess of Wessex roaming the rock (he, the Earl, a descendant of Elizabeth’s I and II), authorizing the projection of a massive portrait of HM Queen Elizabeth II all over la Roca de Gibraltar – so large indeed it can be seen from Madrid - must be galling in the extreme. Those Gibraltarians seem determined not to allow any renegotiation of the Treaty of Utrecht. They’ll hold the FCO’s feet to the fire and send a message to those plucky kelpers in the Falklands to give Cristina the royal salute.

Either way, the Germans are telling the EU not to bother with any more plans for their “banking union” whatever that is. Just another version of the three card trick where the black queen always ends up in the BuBank one could guess. These brilliant EU minds (Barroso et Cie) are untroubled by any appreciation that unlimited debts, when spread over the strongest credit in the world, are sufficient to bring the house (of cards that Jack built) down in a heap (see the USA).


This is a special piece by Simon Nixon in the WSJ for all unreconstructed Thatcherites. His thesis, based on the sad event of a Greek suicide, is that there is not a leader in sight “on the Continent”. With the possible exception of Frau Merkel, and some Balts, Poles, Czechs even. But they’ll be waiting for a very long time for anyone of Thatcher stature. Someone with the courage to speak the unalloyed and painful truth for a change. We are all in a very deep hole – Rule 1: Stop Digging. La Comédie Francaise de Paris must be embarrassing; even to the French with their love of burlesque. There are two big stories in the French press i) regarding Psychozy and reports of his reaction to DSK’s nocturnal antics au voiture in the Bois de Boulogne, and ii) the very public cat-fight, mud-wrestling match between Hollande’s two mistresses; Ségolène in the red corner and Valérie in the Paris Match corner. Heady stuff but it won’t keep the French state out of the Latin ditch.


Hard not to have some sneaking sympathy for Mr. Tsipras. The only way to fight the nonsense of the Euro and its infinite non-sequiturs is to offer countervailing non-sequiturs in reply. We’ll do it our way and we’ll stay in the Euro. See if we don’t! Lefty populism isn’t anything better than very thin gruel, and the money will for sure run out quite soon. But how much worse is that than the misery on offer from Samaras and Evangy and that deus ex machina, The Troika?



Ambrose sees a crack in the German carapace, a chink of light for the down-trodden masses of Club Med sanatoria. Debt pooling by the front door, but with a committed sinking fund. It’ll take years to structure and everyone is guaranteed to hate it by the time the small print emerges. Angela will have been long retired and the debt will still be rolling up. Horses, over the hill, stable door slamming, too little, too late. A bit of Prussian window dressing, I suspect. Surely Ambrose has resorted to wishful thinking.

Which brings us all back to the week from hell – at the end of which Cyprus is bust and the Greeks will vote again – from which the emergence of stable government is highly unlikely. Spanish bond yields are rising, dragging the Italians upwards into the heliosphere where Icarus came unglued. The Spanish bank fix is but words, prayers, good intentions, promises, fingers crossed and a very tenuous connection to the real world of the Prussian taxpayer. Normal capital flight service north will resume subito and continue until something nasty breaks with a loud crack. We read the SDP and its unholy alliance with the Greens (and probably with the Monster Raving Loony Party of Prussia) have threatened die Kanzlerin that they’ll block the fiskalcompact ratification in the Bundesrat if she doesn’t take her Jill-boot off Mariano and Mario’s respective scrawny necks. The short answer should be “Have at it – machen Sie meinen Tag”!

Now is probably a good time to get some rest, stock up on fortifying G&T supplies and settle down for a respite weekend of US Open golf and brace ourselves for a wild Athens Sunday. Come Monday there’ll be plenty of smoke in the air and it’s doubtful it will clear for some while. After which the script becomes very foggy and the players will be back where they started – ad libbing like the Tower of Babel.

Simon

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