Mish's Global Economic Trend Analysis

ECB Calls for "Naming and Shaming" of EMU Budget Violators; Public Warnings, My Goodness!

Posted: 11 Mar 2012 02:19 PM PDT

After years of violating the 3 percent maximum budget deficit restriction as stated in the Maastricht Treaty, Germany is finally a solid citizen.

The Spiegel Online notes German Budget Deficit Plunges to 1 Percent of GDP.

Greece, Portugal, Italy and Spain may hog most of the negative press when it comes to debt in Europe. But Germany too has been in violation of European Union budget rules in recent years, posting a deficit of 4.3 percent of gross domestic product (GDP) in 2010, well above the 3 percent maximum imposed by the Maastricht Treaty.

On Friday, [February 24, 2012] though, Germany's Federal Statistics Office announced that the country's deficit plunged in 2011 and, at 1 percent, is now well within EU limits.

Toot the Horns, Blow the Whistles

Now that Germany has gotten its act together, it's time for "Naming and Shaming" of everyone else.

The Financial Times reports ECB calls for tougher rules on budgets

The European Central Bank has sharpened its hardline stance on eurozone fiscal policy by urging the still-tougher policing of member states' public finances, including by "naming and shaming" the worst offenders.

Europe's newly agreed rules provided "the 'pillars of trust' between countries". "This trust is essential for the monetary union," Mr Draghi told reporters in Frankfurt last week. "In order to continue, the monetary union needs . . . the willingness to be subject to a discipline that cannot be changed by any government whatsoever."

Among the proposals in the report dated March 7, the ECB suggests the surveillance of countries that run into difficulties in the future should be strengthened by public warnings for the most recalcitrant.

"The threat of publicity, if a member state is unco-operative, may provide an incentive to the member state to take more action," the report says.

Where a country under surveillance is threatening the eurozone's financial stability, there should be an automatic recommendation that it seeks financial assistance, the ECB says. It also backs the EU sending a "permanent resident adviser" to countries in difficulties.

Public Warnings, My Goodness!

Obviously these fools do not know how ridiculous they sound and how useless their proposals are. The Maastricht Treaty was useless and the Merkozy Treaty is just more of the same. Moreover, French presidential candidate Francois Hollande (and likely next French president), has vowed to make changes to the treaty.

Spanish prime minister Mariano Rajoy has already announced his own budget target of 5.8% of GDP in 2012, ignoring the EMU mandate of 4.4% on the way to an alleged 3% in 2013. Rest assured 4.4% will not be met, nor will 5.8%.

Last year's deficit was 8.5% and with Spain heading into a monster recession, 7.0% might be a more reasonable expectation for 2012.

"Naming and Shaming" will not do a single bit of good, but it does make for a good song.

Shame, Shame

Link if video does not play: Shame, Shame - Magic Lanterns

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Congressman Norm Dicks, Ranking member of House Appropriations Committee, Steps Aside Following Allegations by Tacoma Lawyer, Doug Cloud; Corruption and Influence Peddling Explain Why Deficit is Out of Control

Posted: 11 Mar 2012 12:24 PM PDT

I am pleased to report that Republican candidate Doug Cloud has finally brought down Democrat Congressman Norm Dicks, ranking Democrat on the powerful House Appropriations Committee.

Scandals surrounding Norm Dicks are long, and deep. However, it was a Freedom on Information request by Doug Cloud, involving FBI files from the lobbyist PMA Group that finally caused Dicks to step aside.

Here is a bit of background on the now defunct PMA Group:

In return for campaign contributions, PMA group clients received over $200 million in contracts.
In November, 2008 FBI agents raided PMA's offices and removed records of the firm's political action committee and files from some of its employees.
In January of 2011, Lobbyist Sentenced to 27 Months in Prison for Role in Illegal Campaign Contribution Scheme.

Guess who else is in those FBI files.

If your guess is Norm Dicks, your guess is a good one according to Official Wire, in their version of the story One Of America's Most Powerful Congressmen Suddenly Retires.

At the sentencing U.S. District Court Judge T. S. Ellis III called the scandal "one of the most extensive and long-running campaign finance schemes ever," telling [PMA Group Lobbyist] Magliocchetti, "You made this choice for one reason: greed."

This scandal took down Rep. John Murtha, but, miraculously, Norm Dicks skated again.

And it would have likely stopped then and there if not for the tenacity of a Tacoma lawyer and opponent of Dicks by the name of Doug Cloud. Cloud filed a Freedom of Information Act request that the Obama administration denied during the 2010 congressional race to get more of the records.

But Cloud tenaciously responded to the denial with a lawsuit to compel release of records and files pertaining to the FBI investigation of Congressman Norm Dicks.

Powerful, Corrupt Officials Not Easily Dislodged

At long last, and only out of fear of what is in FBI records on the PMA Group, Norm Dicks decided to throw in the towel and step aside at the end of his term.

I supported Doug Cloud in the last election. He was one of only a handful I gave free space to on my blog.

It was not to be. Corruption and power are not easily dislodged.

Doug Cloud Press Release

I am pleased to report Doug Cloud is once again going after the seat of Norm Dicks according to his this press release.

Doug Cloud today announces his candidacy for Congress in Washington's sixth Congressional District. Doug is seeking the position currently held by retiring 18 term incumbent Norm Dicks.

In 2010, Cloud received 42% of the votes cast in his race against Dicks. The 2010 campaign, and its aftermath, ended Dicks career. During the 2010 campaign Cloud hammered at Dicks' frequent practice of rewarding campaign contributors and family members with beneficial legislation. He made the link between Congressional "bailouts" and Congressional corruption. Cloud pinned our economic problems on this type of Congressional arrogance.

"Rewarding your favorites in return for campaign cash is bribery. Allowing people like Dicks to take money from those who earned it and give it to those who didn't has ruined our economy. If Congress picks the winners and losers in our economy, we all lose."

In September, 2011, Cloud filed suit against the Department of Justice, seeking to force release of the agency's FBI investigation files pertaining to Dicks' involvement in the huge PMA lobbying and influence buying scandal. Cloud knew that the Department of Justice position, that the files were not a matter of overriding public interest, was indefensible. The only possible way Dicks could keep the files sealed was to return to private life. On March 2, 2012 Dicks made the only decision he could. His career was done. Cloud explained as follows:

"Dicks was no doubt informed by the Department of Justice that they could not keep the files secret while he was the ranking minority member of the Appropriations Committee. He had two choices, stay in Congress and wait for the files to be released, or leave Congress and claim there was no longer a public interest in the investigation reports. He chose the latter."

Doug Cloud knows what our country and economy needs to prosper. Our country needs honest leaders who understand that our economy cannot thrive by stealing from the public and rewarding political insiders.

"True wealth comes from ingenuity and work. Why make the effort if Congress is just going to steal it from you? If you let people thrive on their own, we will all thrive together," Cloud said yesterday.

Personal Message From Doug Cloud

I was aware of much of this in advance of the Cloud's press release, and asked for for a couple of statements. Here are a few select quotes.

Hello Mish

The reason I was so persistent on this issue is because this type of corruption is what is really ruining our economy. Selling Congressional votes to the highest bidder leads to economic disaster because our wealth is given to con men and political schemers instead of naturally flowing to those who innovate and create the goods and services the rest of us desire.

The confidence game run on the public by senior members of Congress goes something like this: "Vote for me so I can keep my seniority. If you don't, the federal money spigot will close to this district. You are beholden to me, and don't forget it."

Mr. Dicks was no exception. Today, the type of blatant influence peddling practiced by Dicks, can no longer be tolerated. The economic injustice of bailing out failing businesses on the backs of productive citizens and businesses has nearly brought this country to its' knees.

Corruption and Blatant Influence Peddling is Why Deficit is Out of Control

Doug Cloud is correct. Whether you are a Republican or a Democrat, no one is served by those taking bribes for votes.

It's time to put an end to corruption and vote buying. Please Support Doug Cloud for representative of Washington State U.S. Congressional District 6, Tacoma and the Olympic Peninsula.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Home Refinance Calculator

Monday, March 12, 2012

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis

No comments:

Post a Comment