ARE SOCIAL SECURITY COSTS PROPERLY REPORTED ?

Most countries, above all in the EU, have a system of Social Security which provides for pensions, benefits for the unemployed, illness and medical expenses.....!  The definition of what is covered varies from country to country.

Whether successive Governments are on the left, right or centre, they all have the same responsibility to ensure that contributions by participants cover the costs of looking after the beneficiaries of the system. 

The real question is therefore whether a Professional valuation is undertaken before each General Election, to inform Political Parties and the Electorate officially of any shortfall between expected costs and expected contributions during the coming 12 months !  Insurance Actuaries already use tried techniques to make such calculations !

The effect of inflation on future costs and contributions, longer life expectancy but unvaried retirement ages, are perfect examples of unexpected costs which if they were known, could change future Government policies and Politicians promises, but also the way electors would vote ! 

Particularly in the EU, but especially in the EUROZONE,
should such an official evaluation not be prepared and become available as soon as a General Election is decided !   In fact, should it not be part of the standard information included in the notes to National Accounts ?  

This would really would permit Electors to understand and judge the effect of the promises being made by Politicians, before they go to vote !
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WHAT GALVANISES PUTIN ? WHAT MAKES HIM TICK ?

To be able to anticipate Putin's next move it helps to know how he was trained as a young man.

Putin was born on October 7, 1952.  He studied Law and graduated at Leningrad Univerity in 1980.  He was later  selected for training by the KGB and then spent 5 years (1985 - 1990) in East Germany working as an intelligence officer for them. 

Putin was in Berlin when "the Wall" was breached on November 9, 1989 !  This liberated Eastern Germany from Russian domination !   Gorbachev was then the President of Russia but could not stop the sudden surge to Independence by numerous Russian satellite countries, many of which, within a few years, joined the EU and some even adopted the EURO as their currency !

After the USSR was dissolved in 1991 Yeltsin became the Leader of Russia.  In 1999 he was losing control and he invited Putin to become Prime Minister.  Russia was on its knees and when Putin was elected President he vowed to restore Russia's place in the World.  He said he wanted Democracy and Prosperity for the People !

Alas, current reports indicate there is mounting dissatisfaction particularly on the economic front !   

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With hindsight one can now say he yearns for the old  Totalitarian style of Government enjoyed by Stalin.  He can no longer recover the Satellite countries already in the EU, but he did manage to prevent Ukraine also joining.      

Putin has temporarily recovered Crimea which helps to protect the Russian Fleet which is stationed in the Black Sea.    What he still desires is a "land corridor" in the South of Ukraine, from Russia to Crimea ! 

He always staunchly denies he is arming the Russian Rebels in Eastern Ukraine in spite of photographic evidence, or that there are Russian Soldiers in Ukraine !  He says they are "Volunteers" !  

It would be interesting to know how these soldiers are paid, because they certainly have dependent families in Russia !

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BLATTER HAS NOT YET RESIGNED !

Last Tuesday there was jubilation, but there were also tears and expressions of incredulity, when Blatter announced that he was "going to resign" !

The next day he was back in his office as usual !

In his dramatic, televised announcement he said that he would organise another Presidential Election in accordance with FIFA rules.    This would take place at the end of the year.

First of all, how can you organise a FIFA Presidential Election when there is still a President legally in office  for the next 4 years ?  Should Blatter not resign legally now !

Secondly, when a President "resigns" so dramatically, particularly when there are active ongoing investigations in Switzerland and the USA, should an Administrator, independent of FIFA not be appointed to perform the functions of President on a temporary basis ?

Thirdly, should a President who is not above all suspicion, be allowed back into his office ?   What are the functions only "HE" can perform ?   Would it not be a better standard procedure to lock him out of his office, so that he could not be tempted to do a "redaction" of certain files ?

A FIFA Administrator must be named in his place quickly and before everyone in Switzerland leaves for their annual Holiday !

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LA GRECE AU BORD DU GOUFFRE

En 2011 ,"MARIN" illustrait ainsi la situation de la Grèce...

En 2015, ce dessin est plus que jamais d'actualité !

A "GREXIT" ? WHAT COULD BE THE CONSEQUENCES ?

For several weeks the EU has watched the EUROZONE trying to avoid the inevitable, the Greek bankruptcy ! 
Greece  can no longer pay its debts and repay the loans which previous Greek Governments obtained from the EUROZONE.

The amount of the outstanding loans is about 320 Billion Euros.  Previous Greek Governments squandered the money received instead of undertaking the drastic measures which are still necessary today !

Greece has no option but to default !  This means that EUROZONE Creditors (Banks and Countries) must write-off the amount not yet repaid !  This is not an earth-trembling amount compared with the total Net Worth of the EUROZONE.  The EURO itself could stand such a shock on Foreiegn Exchange Markets !

Is there another more realistic alternative available for the EUROZONE CREDITORS ?

At present Greece is in the EUROZONE.  Where will it be afterwards ?  Still in the EU with the Drachma as its currency or totally independent away from the shackles of the EU ?  

The EUROZONE must decide what it wants and what it is prepared to do !  Otherwise Tsipras and Greece will decide their own future alone, and the EUROZONE will suffer and bear the Knock-on effect !

These are important considerations, because Greece will again need friendly Financial backing, particularly in moments of unfavourable speculation !  Could such friendly backing not come from Putin's Russia ? 
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FIFA : PRESIDENT BLATTER SUDDENLY RESIGNS ! WHY ?

Four days after his re-election as President of FIFA Sepp Blatter has resigned without giving any creditable reason why he wanted to leave !

Suspicion has increasingly surrounded Blatter for the last 15 years.  He has left a ship which he called FIFA, while it was sinking and while he was at the helm, but it can now be rescued. 

Nothing has ever been crystal clear with Blatter, but with all the ongoing investigations there are probably some things which have come to a head during the last four days.

It has regularly been stated that Blatter was "clean", that he was not party to any of the scandels or suspected frauds now being closely examined in Switzerland and the USA.  However, there is one thing he did want to avoid : the publication of the original "Garcia Report" . 

Last December the Eckert Summary of this Report was severely criticised by Garcia and he then promptly resigned from FIFA.  He said it did not reflect correctly the conclusions in his Report.   To calm the general reactions, Blatter promised to publish a "redacted" version but without saying when !   This "redaction" was never published !  Why ?

Perhaps a copy of the Garcia Report has got into the hands of the American Prosecutors, because they now want to question 14 FIFA Executives ?   As a result of their investigations, do the American Prosecutors perhaps now know more about what was going on in FIFA,  than Blatter himself ever did ?   Or was he "aiding and abetting" his close team of "cronies" ? 

One thing is certain, there are still many more episodes to come on this story !
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EU AND EUROZONE : BOTH NEED MORE FLEXIBILITY

The 9 NON-EURO countries have 9 different currencies to manage and to do this as partners in the EU they need more flexibility in EU rules.

The 19 EUROZONE countries have 1 currency to manage but they also need more flexibility in EU rules and EURO rules to solve the problems  which arise when the economy of one or more member countries does not perform and endangers the parity of the EURO. 

This underlines the fact that there are two sectors in the EU, - the single currency Group and the multi-currency Group.  This must be recognised because each Group can encounter problems which need different solutions !

Emmanuel Macron, the French Minister of the Economy,  envisages a EUROPE advancing into the future at different speeds, which is not quite the same thing.  He also said that this was his private vision of the future, not the official French point of view (interview published in the "Journal du Dimanche" on May 31, 2015).

Basically setting standards and making rules for countries in the EU can only be guidelines to cover future problems.  Countries have activities which vary widely !  For example, how can you compare EURO countries like Germany and Cyprus with non-EURO Poland and the UK ? 

The European Central Bank (ECB) ensures that the parity of the EURO remains stable but is doing this at present with a plan to invest a trillion EUROS to galvanize Employment in the EUROZONE !  This same method cannot be undertaken by the 9 Non-Euroarea countries !  Nor can the Non-Euroarea let the parities of its currencies decline just to make its products more competitive on world markets !

These are just evident observations which confirm that there are two sections in the EU which need separate Solutions and Rules.  Should the EU not recognise this fact ?
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