Monday, July 9, 2012

German Poodles

http://online.barrons.com/article/SB50001424053111903857104577467200405790354.html?mod=BOL_hpp_cover#articleTabs_article%3D1


For those of you who find BRIC investing consistent with sleeping at night; here’s some less than favourable commentary about the future course of Chinese prosperity. This comes on top of serious doubts about the trajectories of other “miracle economies” – notably India, Brazil, and probably Vlad Vlad’s Russia (what with the price of oil and all). As an aside, a report in an edition of the WSJ just last week described India as the largest open air latrine in the world. All these economies/nation states are projected by numerous pundits to overtake the USA within 15 years in total GDP and GDP/head. Even with the USA in deep trouble and spotting them $15 trillion debt points, I’d still be wary of BRIC bonds. Stick with CHF and NKr for my money.


It’s very hard for the Fat Controller not to come clean and admit that Henry the Bad Engine and his whole train are “a bit off track”, when Henry and his rolling stock are lying on their respective sides at the bottom of a ravine. No doubt all 3HP of the Troika will find a way to un-de-rail them with the old rail-road rescue trick of smoke and mirrors.


It must be comforting to the Euro-great-and-good that finally they have a fully paid-up Commie from a tin-pot, half-Greek, half-Ottoman nation somewhere buried in the Sea of Islam, to act as their President. At the same time the President (of Cyprus and now the EU too) tells us he can get better terms for his much needed bail-out from his old buddy Vlad Vlad; whose only non-negotiable demand in return is access to a comfortable warm water port for his navy to rust to bits in the sun. Limassol will do just fine thank you and could he please eject the RAF from Akrotiri while he’s at it. Tartus is looking a bit dodgy right now.


Here’s a pretty true Finn starting to give some cover for Angela’s retreat from Rome, Paris and Madrid.


Booker puts his finger on the need for the Euro-Sceptic part of the Tory Party really to start getting on Dodgy Dave’s case about his endless dissembling, prevaricating and double-talk over the rise of Euro-Fascism and where, if anywhere, his line in the Brussels sand-pit might be found.


Well finally we’ve heard from Ambrose. He must have been vacationing in Berlin. Which I guess may establish the end of our break from the slo-mo Euro-Train-Wreck; while we conclude sending our collective commiserations to poor Diamond Bob, a big beast of Euro-banking, whose modesty, invisible ego and brain-power proved inadequate to save him from the pillory, Tyburn and outer darkness beyond the limits of the Square Mile (where the pots of banker gold are buried). Clearly his Board comprises a bunch of self-serving, pusillanimous invertebrates who tossed Big Bob out with the bathwater as soon as the Tweets started arriving from Dodgy Dave, little Georgie O, Nicky Cleggy, Vince (another big beast), Millipede Ed and the Old Lady herself, Lord Merv of QE and Lord Turnover of FSA. Not to mention the mighty Lord Balls himself, a man whose self-worth evaluation eclipses even Diamond Bob. It wasn’t a real fight, so the ref never had to step in to save Bob’s bacon and the Board fluttered the white towel over Lombard Street for him long before he stepped in the ring. They’d have delivered his head on a pike at Temple Bar if it had been hinted by Merv that such a spectacle might save the Board’s own personal perquisites.

In any event, back to Ambrose. I’ve been wondering what Merkel’s next move would be after she was so comprehensively sand-bagged in Rome and other points Euro. Ambrose tells us she und Das Volk are not going to rely on a Kanzlerin volte face. With her hand-picked Wolfie the Poodle, the ex President, gone and Herr Gauck installed to replaced him; the latter seems to be taking his constitutional role and obligations quite seriously. As well he should, along with the Karslruhe gang in the red hats. They are either constitutionally relevant with legitimate powers to deploy and prerogatives to safeguard, or they are poodles too. (The same highly germane question could be posed to HM the Queen; she of the recent Diamond Jubilee (sorry Bob – ask not for whom the Bow bells toll), her Privy Council and other worthy advisors. Her 60 years on the throne has been one long transfer of the People’s Sovereignty (which I believe is in some way vested in her and the very word is used to describe her person to go with Her Britannic Majesty) to unworthy usurpers in Europe; who appear not to give a tinker’s damn about the UK, its history, nor the importance of its Commonwealth and the English Speaking Peoples around the world. And what of the Lords; whether in ermine or acting as the Highest Court of Law in HM’s Kingdom (now much reduced in stature by the modernising influence of barbarian forces, including successive Lords Chancellor, to “The Supreme Court” – very original)? Where is the Master of the Rolls when we need him? Whither has Walter Bagehot’s mysterious part of the UK’s constitutional construction evaporated; bequeathing the polity a vacuum at its heart?

It’s going to be another very testing week for that Club-Med Troika, the horseless ones, Francois, Mariano and Mario. I wouldn’t be betting on growff over austerity just yet. Christine, bless her, is fading fast into a bit part player calling monotonously for the sky to fall. She needs a new jingle to rescue her fading brand.

Simon

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