German economic crisis: industrial output plunges to ‘disaster’ level -other economic data revised down

This news site and our sister publication Original Boggart Blog have spent three years arguing logically and reasonably against the emotionally overwrought ravings of people who supported ‘Remain’ in the 2016 EU referendum and cannot accept they lost. Brexit will be a catastrophe, they scream, people will starve, we wil have no medicines or toilet rolls, no food or water or beer or anything, toilets will explode and spew boiling sewage and blood into our homes, aircraft will fall out of the sky, clocks will run backwards and our nostrils will be assailed by wet dog smelss because no nation of a mere 60 million people can survive outside the EU.

And those of us stubborn enough to pick up the gauntlet have pointed out that Canada (30 millonish) Australia (20someting million, New Zealand (more sheep than people,) and the 85% of the world’s nations that are not EU members seem to do OK. And then we have backed up our assertions with evendence that since the referendum was won by Leave predictions of economic collapse for britain have failed to materialise, while for most EU nations, stagnation is turning into recession. The latest evidence for this is another news item showing the mighty German economy, on which the EU has always depended and will depend even more once the UK leaves, is running into trouble.

Yesterday (6 August 2019) it was announced that industrial production in Germany dropped by a greater degree than expected in June, showing a 1.5% month on month decrease, thus compounding fears that Europe’s biggest economy is facing an imminent recession.

Output fell 5.2 per cent year on year from June 2018, the German national statistics office revealed on. According to Reuters, analysts had estimated output would fall 0.4 per cent during the month compared with May. Production, excluding energy and construction, was down 1.8 per cent.

These figures from Destatis come only a day after the same source revealed that factory orders, driven by an increase in demand from countries outside the eurozone, were higher than expected. While those figures offered a glimmer of hope among a plethora of bad news for EU economies and particularly for Europe’s economic powerhouse, business analysts pointed out that new orders have dropped by an average of 0.7 per cent every month throughout this year.

June’s decline in output “kills off any hopes that the strong orders data published yesterday marked the beginning of a recovery”, said Andrew Kenningham, chief Europe economist at Capital Economics. “Business surveys uniformly point to a further contraction in July, so things look set to get worse rather than better.”

Other economic data published this week included revised down figures for services that showed the sector in Germany had grown at a slower rate in July than had been earlier thought, prompting fears that the eurozone’s biggest economy is heading into a recession.

German website Handelsblatt commented: “If both sides remain stubborn, this can jeopardise the stability of the financial markets.

Concerns that the industrial output drop exacerbates long – standing fears over German economy first appeared on The Financial Times website. That such concerns are being expressed by serious economics writers in a heavyweight publication like The Financial Times exposes the level of scaremongering based on fake news that hasd been used in the Brexit debate by those determined to overturn the result and deny the democratically expressed will of the people.

Germany slips into economic meltdown as US-China trade war escalates
Germany looks to be headed for economic meltdown (as this publication has predicted since early in the year,) due to the trade war between the US and China […] Sebastian Dullien of the Institute for Macroeconomics and Business Cycle Research claimed the German Chancellor is burying her head in the sand regarding how Trump’s tariffs will impact German exports …

Germany: Economy crisis a growth stalls – car production crashes
Germany’s federal Government today reduced its growth forecast for the EU’s largest economy today after for the second time in two months as plunging car production figures sent shockwaves through the Eurozone. The German economy, already technically in recession, has been propping up the economically stagnant EU for years. After Brexit of course …


Europe’s Bank Crisis Arrives In Germany: €29 Billion Bremen Landesbank On The Verge Of Failure

… yesterday we observed a surprising development involving Deutsche Bank, namely the bank’s decision to quietly liquidate some of its shipping loans. Reuters reported, “Deutsche Bank is looking to sell at least $1 billion of shipping loans [a market sector] whose lenders face closer scrutiny from the European Central Bank.


Europe Prepares To Join The Currency War

Things seemed to be going to plan for the European Unon’s single currecncy, The Euro, which was the biggest single step in the plan to merge the twenty eight member states into a single political entity. Ties to the German economic powerhouse the poorer nations of southern Europe could not manage their finances efficiently and soon became dependent on bailouts from the European Central Bank with were made with attached conditions suggested by Germany. It seemed that as long as the German economy prospered the ‘European project,’ (referred to, a tad unkindly perhaps, by this news site among others as Greater Germany,) would stay on track.


Germany admits hard Brexit will cause havoc in EU financial markets – ‘Common sense MUST prevail’

Germany, the EU’s most powerful economy, has urged Prime Minister Theresa May and the EU’s chief negotiator, the pompous French clown Michel Barnier to do all in their power to avoid a hard Brexit due to risks of French instransigence disrupting the financial sector. This would be catastrophic for the EU’s financial markets, though the leading German economists say the prospect is becoming “more likely every day”.

Yanis Varoufakis bombshell: Pound to Euro Exchange Rate ‘Paradox,’ weakness of pound against Euro is good news for UK

posted by Phil. T Looker, 22 July 2019

Former Greek finance minister Yanis Varoufakis claimed the reason why the euro is valued so highly compared to the pound or US dollar is because of a “delicious paradox” which sees the Eurozone actually being on the verge of a dramatic break-up, newly-resurfaced footage reveals.

Despite the uncertainty [surounding Brexit], the euro has largely remained strong since the 2016 referendum but, according to former Greek Finance minister Yanis Varoufakis, there is a shocking reason why this has occurred.

Mr Varoufakis called it a “delicious paradox”.

In a 2018 debate at the Oxford Union, the Greek minister explained: “Why do the money markets value the euro so highly compared to the pound, the American dollar?

“Suppose you are a Singaporean, Chinese, American or even a German investor, and for some reason, you agree with me that the fragmentation of the Eurozone is at an advanced stage, and the euro has never been weaker or more problematic.

“Should you sell your euros?

“No, let me share a secret with you. You should shift your euros to a German bank account.”

Mr Varoufakis explained that if the Eurozone breaks up and all the countries revert to their pre-euro currencies, euros held in German bank accounts will be re-denominated into Deutschmarks, which will be stronger than any other European currencies because of the country’s “huge account surplus”.

READ FULL STORY at express.co.uk

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How Much Does The UK Actually Send To The EU

Big kerfuffle this week over Conservative Party leadership contender Boris Johnson facing a court hearing over his claim, made during the EU Referendim campaign, that Britain sends £350million a week to Brussels. Originally the Rabid Remainers tried to claim somebody in the Leave campaign (they weren’t quite sure if it was Boris, Nigel Farahe, Jacob Rees – Mogg, Michael Gove or somebody else and didn’t really care,) had said all of the money would go to the NHS. Nobody had actually said it of course but such is the solipsism of the globalist camp that if they want something to be true, they can easily convince themseles it is true.

The claim is in fact true but misleading. If the amount paid into the EU budget is taken, then it is close to £350million a week. Our net contribution (i.e. after the amount paid by the EU to fund various EU supported projects means the net amount we contribute to the EU is somewhat less. However that £350million is not the full story:

from The Bruges Group

The true cost to Britain being a part of the European Union is close to £661 million per week since 2010, a number hidden from the British taxpayers due to an intricate payments system and largely ignored by the mainstream media.

Our estimated figure encompasses £80billion lost to the Treasury after the European Court of Justice forced tax rebates to multinationals.

A key area of controversy is on the rebate, an annual, purported “reduction” in United Kingdom’s contribution to the EU budget that’s equal to about 66% of the difference between what the UK contributes to the EU budget and its receipts from the EU.

Even after the rebate, in membership fees alone, Britain shelled out £70.6 billion since 2010.

Data derived from a briefing paper on “The UK’s contribution to the EU Budget” indicates Britain contributed between £8-10 billion per year. The same report acknowledged “the UK made the second largest net contribution to the EU budget in absolute terms, and the third largest net contribution per head of population” in 2015.

If the EU exceeds its budget, as it did in the fiscal year 2014-2015, UK is responsible for footing the difference. We did that year in the amount of £1.7 billion, as reported by the Daily Mail.

The EU demanded the amount after recalculating the income of member states dating back almost 20 years, penalizing the British economy that was found to be larger than previously determined. The article detailed Britain “paid the amount due” in full with two instalments not subject to rebates.

Parliament has no control over these payments since Britain is part of the EU and civil servants are legally obliged to pay these costs. Britain is increasingly relied upon as a financial support structure for Eurozone countries facing serious financial difficulty or at risk of defaulting on their debt

oblications.

>>

EU’s Top Eurofederalist admits EU wants an empire
The leader of the Alliance of Liberals and Democrats in Europe (ALDE)
told CNN that plans to reform the EU and devolve power from Brussels back to the nation-state proposed by the populist paries that have spring up in member states, and led by Matteo Salvin’s Lega (League) in Italy, Marine le Pen and her Rassemblement National in France and Hungary’s Victor Orban, leader of the Fidesz party would mean that the bloc “will die inside.”

Little Donny Tusk The Polish Has-Been Tells Britain How To Vote.


Donald Tusk, who is the President of the European Council and was the centre-right Europhile Prime Minister of Poland from 2007 to 2014 made the remarks in support of his former Deputy Prime Minister, Anglo-Pole Jan-Vincent Rostowski who is standing as a Change UK candidate in London for Thursday’s election.


bYellow Vest Violence Erupts Again, 23rd Straight week Of Protests

Clashes between Gilets Jaunes (Yellow Vest) protesters and French riot police on Sturday (20 April,)during the 23rd straight week of protests across France. Police arrested 137 protesters Euro News reports.

Brexit Is Now About More Than Leaving The EU

Until now we have not posted anything in the past few days on Brexit. Our position is well know to our readers, let’s face it, the saturation coverage left nothing new to be said. The whole thing is a craptangle, but it was obvious from when the Conservative Party engineered a situation in which Theresa May was left as the only candidate for the leadership that there could be no other outcome.

EU “Sounds Alarm” Over New US Sanctions On Russia; Germany Threatens Retaliation
Late on Friday (21/07/17), Congressional negotiators agreed to advance a cross – party bill that would punish Russia for its (alleged) interference in the 2016 election according to the Wall Street Journal. And while it seems improbable that President Trump would sign the bill if it reaches his desk, the loudest complaint about the bill to date has emerged not from the Oval Office, but from US allies in NATO and the European Union …

Nigel Farage Swipes Back At Irrational, Screeching, Crazy Clinton
US Democratic Party presidential candidate Hillary Clinton launched a hysterical, irrational attack, filled with half truths and blatant lies, against the most prominent figure in the campaign to get Britain out of the EU (Brexit), UK Independence Party leader Nigel Farage, during a speech at a rally today. Mrs Clinton, responding to Farage’s address to a large and enthusiastic audience at a Donald Trump rally, may have been rattled at the prospect of having such a hihly effective campaigner in the rival camp …

Rebellion Against EU Authoritarianism Escalates As 8th Member Nation Threatens Referendum
Brussels went too far, they crossed the line in moving from an economic union to a political pan – European political empire. In the end it was a race as to which member state would quit first, Britain, Natherlands, Denmark or Italy. In the event it is Britain.

Is Brexit A Harbinger Of Doom For The ‘Experts’
The Brexit vote, the decision by a democratic majority in Britain to leave the European Union has sent shockwaves around the world. Not only does the EU now face a tsunami of departures, the usurpation of democracy by ‘experts’ ( technocrats ) has been challenged and exposed as a sham.

BREXIT vs. GREXIT – The Truth About The European Union And How It Treats Members
Unless the testicularly deficient politicians stand up for their nations he only thing that will halt the European Union’s push beyond Europe’s geographical borders to incorporate Asian, middle eastern and north African nations is war. Power is addictive and the bean counters of Brussels have ambitions far beyond Europe.

The Hypocrisy and Snobbery Of The Remain Campaign And The Antidote

When I had to defriend a Facebook contact because she was arguing in favour of the EU, it was not simply because I support Brexit that I had become pissed of with her, it was the snobbish and condescending way she dismissed supporters of LEAVE and their case. People are entitled to their opinion on the European Union, but they should check the ‘facts’ they post in support of their arguments.

The Labour Case For Brexit by Kate Hoey M.P.
After my short intro is a savage indictment by Brexit supporting Labour MP Kate Hoey of the way the Labour Party has abandoned the working class and is now trying to betray the party’s proud heritage and its roots in the industrial areas by taking Britain into an undemocratic, corporate controlled, capitalist friendly, elite dominated globalist control freak project.

Dutch Referendum This Week Shows why We Should Leave The EU.
Few of you were aware probably that there is an EU referendum vote in The Netherlands this week. As usual with anything negative about the EU barely a word has been printed in the topic in mainstream media and the silence from our notionally unbiased national broadcaster The Bolshevik Broadcasting Corporation (BBC) has been deafening.

French, Belgians, Dutch, Italians Follow Britain in Euroskepticism
Europeans want us British to lead them out of Europe. Don’t be fooled by project fear, the European Union (aka the Euronazi Federal Superstate) is falling apart. There will not be chaos if we leave, there will be chaos if we stay.

Head Of European Institute: Brexit ‘Better’ For Everyone
Brexit would be the best result of Britain’s in / out referendum for both Britain and the EU i a Belgian professor who heads up the European Institute at the London School of Economics (LSE) has said.

Johnson’s article lines up his reasons why Britain must exit on June 23rd. It’s time to be brave
OK, I know a lot of you think Boris is most accurately described by a word many people find offensive, but he’s put together a very good argument here on why we must leave the EU. Published in part here under ‘fair use’ terms and conditions, in the public interest …

If The Banker’s Cartel And Silicon Valley Are Pushing Cashless Stores We Should Avoid Them

This story is part of CNET’s ongoing Follow the Money series, which looks at how digital cash is changing the way we save, shop and work.

When Philadelphia City Councilman Bill Greenlee heard that a coffee shop and a salad restaurant right near City Hall didn’t accept cash, he thought it sounded unfair.

“I can get my coffee and muffin, but the person behind me who has the monetary unit of the United States of America, that’s been accepted here in Philadelphia since Ben Franklin, can’t?” he said in an interview. “It just seemed wrong.”

So last October, Greenlee (who uses both card and cash) co-sponsored a bill requiring businesses to accept cash. In March, Mayor Jim Kenney signed it into law.

Cashless stores and events are just starting to crop up in the retail landscape with much hoopla — consider the splashy launches of Amazon Go stores —  but they’re already running into hurdles from legislators in cities and states around the country. These governments are concerned that what some see as technological innovation could actually widen societal gaps between those who have access to financial services and those who don’t.

This work could ensure we don’t end up with a future in which there are stores that lower-income people just can’t use. But this legislation may also prevent new cashless experiments from ever taking hold and help cash stay king for a long time.

 

Cash’s demise at the hands of cards, e-commerce and mobile payments has been heralded for decades as a faster and more secure way to pay for stuff. After all, you can’t lose a digital wallet the same way you can lose a real one. Yet cash is still the most frequently used form of payments (representing 30% of all transactions), particularly for smaller transactions (where it’s 55%), according to the Federal Reserve.

While you might opt to pay for a bottle of water with card instead of cash, there’s still a swath of the population that doesn’t have that choice. Roughly 8.4 million households in the US were considered “unbanked” in 2017, according to the FDIC. That means no one in those households had access to a checking or savings account.

Check out Boggart Blog and The Daily Stirrer’s omnibus page on the Cashless Society

Fascism Spreads From Tech Corporations To Finance Sector As Mastercard Blocks Conservative Clients

OK, it’s not happening here in Britain yet but bad ideas from the USA usually manage to leap across The Atlantic Ocean without difficiulty, and the really unpleasant ones make that crossing at supersonic speed. The latest crappy idea from the far right control freaks of the US Progressivw Liberal movement, and probably the crappiest yet to spring from that fountain of self – righteous idiocy is financial censorship of our activities by credit and debit card providers.

Blocking payments to individuals or groups by financial service firms because of their political views impedes freedom of speech in a free society, journalist Ben Swann has told RT, following reports that MasterCard is allegedly on course to censor the far-right by blocking payments from supporters.


Picture via Zero Hedge

The New York-based organisation is reported to be on the brink of being forced by pressure from far left extremists to create an internal “human rights committee” that would monitor payments to “white supremacist groups and anti-Islam activists.”

“The problem is that everyone has their own views and, in a free society, the idea of a free society is that you are free to have your belief systems, as long as you’re not harming anyone else physically,” Swann told RT America.

“But your belief system belongs to you and you have the right be wrong. White supremacists have the right to be wrong.”

MasterCard is not the only financial services provider considering the selective banning of individuals from their services and funds. Crowd funding webside Patreon and online payments handler PayPal have previously barred individuals considered to hold ‘extreme views’ from receiving payments via their platforms.

But unlike being excluded from online only platforms, being cut off from one of the leading global financial services corporations is likely have a much greater impact on the financial status of an individual or a group, especially after the US Securities and Exchange Commission reportedly blessed MasterCard’s undertaking.

By doing this, Swann believes the government granted “big corporations the ability to control what voices are heard.”

The issue with such an approach, the investigative journalist argues, would lead to a wider crackdown on financial payments to anyone who an authoritarian government would view as unfavorable.

“The fact that the SEC has given a green light to this essentially says the SEC supports the idea of censoring these groups in order to freeze out essentially anyone you don’t agree with,” the journalist said.

“It is a dystopian 1984 world view and yet we’re living through it right now,” the journalist observed.

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UK Taxman Ruthlessly Pursuing Its Contract Staff For Six-figure Sums In Unpaid Tax


Picture credit: hillkindy.com

Majesty’s Revenue & Customs (HMRC) is once again hounding its own employees for potential six-figure bills as part of a crackdown on tax avoidance schemes. Some years ago I was a victim of one of these crackdowns, as an Information Technology consultant I, along with thousands of others working as external consultants in both government and business were forced by the tax inspectors to operate as  limited liability companies.

The tax service had decided we were using th

e self employed status to avoid National Insurance Employers Contributions (a sanitized name for a British payroll tax,) as the self employed were not liable for this levy. By reinterpreting a law in such an extreme way it stretched words beyond any literal meaning, the taxman decided we should all set up limited companies, with ourselves as the only employee, thus making our employers, the quasi – companies, liable as our employers for the payroll tax.

Taxman thought he had won, but people who decide to employ themselves are bright, resourceful types and we soon learned the completely legal tax dodges used by the super rich, through their companies and trusts. We got ourselves accountants who advised on techniques like buybacks, directors loans etc. and we, in partnership with our incorporated dopplegangers, were soon all paying less tax than we had as self employed individuals.

Needless to say the taxman was furious. But we IT professionals, consultant engineers, designers, technicians and other contract workers in media, finance, healthcare and across the whole range of commercial activities were being advised and assisted by accountants. So the taxman hit on a new idea, he talked politicians into passing retrospective laws. Something you did legally in, say, 1995, could in 1998 be declared to have been a crime since 1993, thus in 1999 you could be prosecuted for it. And they call this liberal democracy.

All that was a long time ago. The techniques we used then have been blocked one way or another, and as a bonus for the taxman, Britain’s software industry died (well, relocated to cyberspace,) as a result.

The ruthless war on enterprise and talent continued. Electricians and plumbers were targeted by the taxman in a purge that cost us poor taxpayers £8million and in which the tax inspectors managed to recover £100,000 in unpaid taxes (yeah, economics is not one of these people’s strengths.)

Among the people in another purge  to fall foul of this new retrospective lawmaking were entertainers and sports stars. And like the professional consultants of my era, a few years earlier,  these people fell foul of the taxman for doing something that was perfectly legal at the time they did it.

Around 50,000 contractors are now being targeted by the tax office for using so-called disguised remuneration schemes, which involved receiving income in the form of tax-free loans from an offshore trust, throughout the Noughties and more recently.

The law was changed in 2016 and those who used the arrangements now face huge tax bills which, campaigners claim, will force some into bankruptcy or cause them to lose their homes.

It has now emerged that HMRC engaged contractors who were being paid in loans and is now pursuing them for the unpaid tax, the Sunday Telegraph revealed.

A panel of MPs  looking into complaints about HMRC’s persecution of certain groups has received evidence from multiple contractors once engaged by the taxman who say they used disguised remuneration arrangements and now face penalties.

Sir Ed Davey, a former Government minister, said: “This is astonishing considering HMRC’s ruthless and unreasonable pursuit of people in this situation, when they didn’t break the law and followed professional advice.

 

“What’s more, the evidence we’ve received also shows that these people declared all their arrangements in their annual tax return, so contrary to their claims not to know, HMRC were indeed aware contractors working for them were using these schemes.

One contractor, who worked for HMRC over two spells, anonymously told the panel that, based on the bills received by her peers, she expects she could be asked for almost £140,000. The 45-year-old, who lives in London, said: “It feels like the Government has gone to war against you. This is all about wearing people down and getting them to give up.”

Well yes, as I said earlier the government has been at war with enterprise, creativity and talent for a long time.

The schemes became popular in 1999 and were briefly sold by some of Britain’s leading accountancy firms.

In December, the House of Lords Economics Committee criticised HMRC’s approach to recouping the tax owed, describing it as “retrospective” and saying it was failing to distinguish between “contrived tax avoidance by sophisticated, high income individuals” and relatively low earners who made “naive decisions”.

A spokesman for the tax office said: “HMRC has never endorsed or participated in disguised remuneration tax avoidance schemes. It is possible for contractors to use disguised remuneration without the participation or knowledge of their engager.”

He added that all contractors found to have used a loan scheme would be treated the same. What a pity they do not feel able to deploy the same diligence in their dealings with companies like Amazon, Google, Facebook, Apple and Microsoft, all of which are handled with kid gloves in spite of blatantly operating tax scams to avoid paying tax on most or all of their corporate profits.

 
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Prominent Hedge Fund Manager Sees Dollar Losing Reserve Currency Status

While the liberal democracies, having allowed Cultural Marxists to infiltrate government at every level and implement socially and economically disruptive policies Ray Dalio, founder of Bridgewater, the world’s biggest Hedge Fund believes now is a good time to reflect on China’s progress towards its goal of replacing the USA as the world’s most powerful nation.

China’s growth as the size if its economy closes rapidly on that of the USA, speaks for itself, but Dalio adds:

“To have such rates of improvements in so many areas and for so many people has made it the greatest economic miracle ever.”

 

And from what Dalio has seen, he believes that the very impressive results that the Chinese leadership and the Chinese people produced came about primarily because of the powerful combination of a) China’s opening up and reforming following an extended period of isolation that led to a fast catching up (especially in the coastal regions of China) with the advanced developed world, and b) the power of the Chinese culture and it’s related ways of operating.

Crucially, Dalio points out that, if you haven’t spent time in China, you need to get any stereotypes you might have out of your mind because it’s not how it was. This is not your father’s communism. It is “socialism with Chinese characteristics” that has been significantly and very effectively reformed, which has made it much more vital, creative, and economically free.

Dalio’s ‘romantic’ view of a paternal China is definitely not the mainstream narrative:

“From my experiences and from what I am told by Chinese who should know, I believe Chinese leadership seeks to run the country the way they believe a good family should be run, from the top down, maintaining high standards of behavior, putting the collective interest ahead of any individual interest, with each member knowing their place and having filial respect for those in the hierarchy so the system works in an orderly way. One of China’s leaders who explained this concept to me told that the word “country” consists of two characters, state and family, which influences how they view their role in looking after their state/family.

One might say that the Chinese government is paternal. For example, it regulates what types of video games are watched by children and how many hours a day they play them. As a broad generalization, when the interest of the country (like the family) is at odds with the interest of the individual, the interest of the country (like the interest of the family) should be favored over the interest of the individual. Individuals are parts of a greater machine. As a result of this perspective, the system seeks to develop, promote and reward good character and good citizenship. For example it gives people a social credit score that rates the quality of their citizenship. And each person is expected to view themselves as parts of the greater whole.

This management from the top down includes visualizing what China 5, 10 and 20 years in the future should be like and then making and managing detailed multiyear plans to build out that vision, with the goal being to make China as great as it can be. China is run more like a giant company with many subsidiaries, some within the government’s direct control and some within its indirect control.

But, as the fund manager notes, while Chinese culture has been evolving, it has at its most fundamental level been operating in similar ways for many hundreds or even thousands of years and the results of operating that way are knowable in an approximate way.

I have recently been researching the rise and fall of reserve currencies, which led me to study the rises and declines of the world’s most powerful countries. That led my research team and me to put together the following indices of the relative powers of leading countries since 1500. These indices are a combination of six sub-indices that measure six different types of power:

1) innovation & competitiveness,

2) domestic output,

3) share of world trade,

4) financial-center size and power,

5) military strength, and

6) reserve-currency status.

…and they show when different countries reached their peaks relative to the rest of the world.”

And to support his position he has put together an impressive set of statistics showing how global and regional powers from Portugal in the west and China in the east, in the late medieval era, rose to economic dominance in the west, and how as Portugal declined to be replaced by Spain, then France, then The British Empire and finally the USA all rose to dominate while they had a stable culture and strong values, and all declined when political factors undermined that cultural stability and government started to medle in private affairs.

China on the other hand, dominated in the east from around 1200 to 1900 CE only being challenged by the British and the Japanese in India from the mid nineteenth century. China’s social system had stagnated through isolation, while Jaoan’s had been revitalised by contact forst with Portuguese and Dutch traders and then US government and business interests.

After the communists took over China’s still stagnant society the nation became even more isolated until the idealist Mao Tse Tung was replaced by equally totalitarian but more pragmatic leaders who opened up the country economically and allowed individualism and enterprise to flourish. The reformed communist party opened up the economy but maintained the cultural stability based on family, community and tradition.

And judging by Dalio’s take on American culture, it is clear where he thinks this is going…

“Most fundamentally, the US is a country in which individuals, individualism, and individual property rights are perceived to be of paramount importance it is directed from the bottom up (e.g., through “one man, one vote” democracies that empower people to choose their leaders), being revolutionary is considered a good thing, and conflict is valued more than harmony.

Rather than respecting top down control most American have a strong preference to keep government from interfering with their most individual choices. Character development is a personal or family issue, not a government issue (which leaves it largely neglected in areas with broken families, especially if they’re poor).

Rather than there being a long-term top down vision for the country and a plan to achieve that vision, in the capitalist and democratic system such directions are more bottom up determined based on commercial and popularity considerations.”

Thus Dalio comes to the conclusion that as the USA continues to fragment socially it’s economic decline will also continue, while the Chinese, bound by their strong and stable culture, will continue to forge ahead, with the inevitable result that the US$ will lose its reserve currency status, something which is already happening as we have reported HERE. Of course, the world’s largest hedge fund manager avoids directly slamming America’s ‘dream’ or supporting China’s central planners:

“I’m not saying which system is better. Each culture/system has its pros and cons that I’m not going to get into now.

I believe that the important thing to know are that while there will be trade wars and trade truces they aren’t the most important things. ”

So, in summary, “it’s not the economy, it’s the culture stupid!”

The Demise Of Dollar Hegemony: Russia Breaks Wall Streets’s Oil-Price Monopoly

Significant moves in the global chess game have just rendered the huffing and puffing of warmonger Obama meaningless and will break Wall Street’s monopoly in controlling oil markets. The move is part of Vladimir Putin’s long-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, in effect …

Naked Bankers Go For Gold

… That gold sale in 2013 was a naked short. The seller had no gold to sell. COMEX reported having gold only equal to about half of the short sale in its vaults, and not all of that was available for delivery (quite a lot of it belonged to the german government) In effect the naked shorting of gold could only work because really the right hand was selling to the left hand.

The Demise Of Dollar Hegemony: Russia Breaks Wall Streets’s Oil-Price Monopoly
In a move that went almost completely unreported in mainstream media, Russia has recently opened a market for the trading of physical and ‘paper’ oil (futures) in Moscow in Roubles. This is the most blatant challenge yet to the domination of the US dollar in world trade.

China launches global yuan payment system
China’s Central Bank has started a global payment system which provides cross-border transactions in yuan. The China International Payment System (CIPS) intends to internationalize the yuan and challenge the US dollar’s dominance.

EU and US talk of war with Russia

The European People’s Party (EPP) is the largest political group in the European Parliament, and they are unerringly supportive of America’s efforts to start a war with Russia. “The time of talk and persuasion with Russia is over,” MEP and Vice-President of the EPP told a meeting on Tuesday, 21 April, “Now it’s time for a tough policy, and concentration on defence and security …”

This Is Why The US Just Lost Its Superpower Status According To Larry Summers

As more and more countries flock to join the Chinese led Asian Infrastructure Investment Bank after Britain, France Australia, India and other traditional US allies defied Washington to associate themselves with China’s initiative, conservative economic pundit Larry Summers once a contender for the chairmanship of the Federal Reserve delivered a sharp rebuke …

The True Debt Disaster America Faces – Only A Fraction Of Government Debt Is Known To The Public

Politicians and the media talk about the $17 trillion debt the US Government owes to creditors. They are lying, the $17 trillion is a fraction of what america owes. The real figure is $200 trillon. And Obama’s loonytoons economics are driving that up at an accelerating rate.

U.S. versus Russia War: Top Russian Politics Scolar Stephen Cohen Tells The Truth

We have been blogging for four years about the US drive for war, provocation of Russia in Syria, Iraq, Ukraine and elsewhere made it obvious. But I’m just a news junkie with a strong sense of curiosity and have wondered why the US seems set on this course. Good to see experts like Stephen Cohen, a prominent expert on, Russia are coming onside.

Does It matter If The Dollar Is Replaced?

“Without delving too deeply into Austrian economic and capital theory, just let me point out that money printing disrupts the structure of production by fraudulently changing the “price discovery process” of capitalism. Capital is allocated to projects that will never be profitably completed. Bubbles get created and collapse and businesses are suddenly damaged en mass, thus, destroying wealth. (Zero Hedge)”

What the BRICS plus Germany are really up to in the Currency Wars?

The move led by Russia and China to dump the Petrodollar has escalated into a currency war, not the kind of war we assciate Obama with but give him time. Some wars as in Ukraine, by proxy are not going so well. Others, like the one against Islamic State aka ISIS aka ISIL in the middle east are going worse. Disintegration of The American Economic Empire is manifesting itself in moves by wannabe global players towards creating a multipolar world …

 

Russia Just Sent out a Message NATO Should Better Listen To

The key paragraph from the latest official Russian naval doctrine is that Putin and his military advisers have sent a clear message that NATO encroachment is unacceptable. To be honest, there is nothing earth shattering in this, The Daily Stirrer and many other alternative media news and analysis sites have been warning for about two years that Obama’s foreign policy was making conflict inevitable.

De – dollarization Moves Ahead – Once Again We Told You So,

What Putin Wants

China Warns U.S. to Stop Its Ukrainian Proxy War Against Russia

The World Rejects USA Attempt To Manipulate Venezuela

India’s Ruling BJP Party Crushed In Regional Poll

Another Conspiracy Theory Becomes Fact: Oil Collapse Is All About Obama’s Proxy War With Russia.

G77 Nations vow to destroy petrodollar and America’s New World Order

American Dollar Dumped

Iran’s Oil and the US Dollar