Friday, June 24, 2016

Brexit - what US politicians say - CBS News

U.S. politicians react to Brexit vote
Last Updated Jun 24, 2016 9:57 AM EDT
During a tour of his golf courses in Scotland, Donald Trump praised the results of Thursday's British vote to exit the European Union, calling it a sign that the United Kingdom "took back control of their country."
"It's a great thing," Trump told reporters Friday at the reopening of his Turnberry, Scotland golf resort. "They're angry over borders, they're angry over people coming into the country and taking over."

In a separate statement posted to his Facebook page, the billionaire pledged to "strengthen our ties with a free and independent Britain," and assured Americans that they too would have an opportunity to "declare their independence" in November's general election.
He also noted that the British vote -- also widely known as "Brexit" -- reflected some parallels to his own bid for the White House.
"I think there are great similarities between happened here and my campaign," the business mogul said in his press conference. "People want to take their country back."
He also predicted that the plummeting worth of Britain's currency could be a net positive in the future, even saying that it could benefit his own business interests in Scotland.
"If the pound goes down, more people are coming to Turnberry frankly," Trump said, referring to his latest golf resort.
In a tweet, Trump said he observed Scotland "going wild" over the referendum results:
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Donald J. Trump

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Just arrived in Scotland. Place is going wild over the vote. They took their country back, just like we will take America back. No games!
7:21 PM - 24 Jun 2016
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Scotland, however, voted to remain in the EU.


Other U.S. politicians also weighed in on the historic vote, including President Barack Obama.
"The people of the United Kingdom have spoken, and we respect their decision," the president wrote in a short statement Friday morning, assuring that the "special relationship" between the U.S. and the U.K. would still remain intact.
"The United Kingdom and the European Union will remain indispensable partners of the United States even as they begin negotiating their ongoing relationship to ensure continued stability, security, and prosperity for Europe, Great Britain and Northern Ireland, and the world," he said.
Vice President Joe Biden sought to assure Ireland and the EU over their relationships with the U.S. while attending a medal ceremony at Trinity College in Dublin.
"I must say we had looked for a different outcome. We would have preferred a different outcome," Biden said at the university, where he received an honorary law doctorate. "And I would imagine many of you here felt the same way."
But as the United States has a long standing friendship with the United Kingdom, one of the world`s great democracies, we respect the decision that they have made," the vice president added. "And I want to assure all of you in this room that America`s special bond with the United Kingdom runs deep and it will endure, and our relationship with Ireland and with the European Union will remain the cornerstone of our global engagement."

U.S. markets prepare for turmoil after Brexit vote
Democrats' presumptive presidential nominee, Hillary Clinton, released a statement addressing the British vote, saying she "respect[s] the choice the people of the United Kingdom have made."
She noted, however, that the decision to leave the European Union meant "economic uncertainty" in the near future.
"Our first task has to be to make sure that the economic uncertainty created by these events does not hurt working families here in America," Clinton wrote. "We also have to make clear America's steadfast commitment to the special relationship with Britain and the transatlantic alliance with Europe."
She added that "this time of uncertainty" highlights the need for "calm, steady, experienced leadership" in the White House.
Bernie Sanders, Clinton's rival, also voiced his "concerns" about the vote.
"I think it's a decision for the British people but I have concerns," Sanders, a Vermont senator, said in an interview with "CBS This Morning" Friday. "I have concerns you know when we think back over the last 100 years and the horrible wars, the kind of blood that was shed throughout Europe -- the idea of the countries coming closer together is something that we want to see."


Sanders on Brexit, what it would take for him to endorse Clinton
But, he added, "a lot of people are being left behind in this global economy."
House Speaker Paul Ryan, R-Wisconsin, maintained that the relationship between the U.S. and the United Kingdom would remain "unaffected" by the British departure from the EU.
"I respect the decision made by the people of the United Kingdom," Ryan said in a statement Friday morning. "The UK is an indispensable ally of the United States, and that special relationship is unaffected by this vote."
Civil rights icon and U.S. Rep. John Lewis, R-Georgia, warned that the vote would have a "devastating" effect on the global economy.
"It is unbelievable. It is unreal," Lewis told "CBS This Morning" Friday. "I believe it is going to have a devastating effect and amazing impact on the market all around the world. I'm interested in seeing what the president is going to say today, what the secretary of treasury is going to say today and maybe how Wall Street reacts today."

Thursday, June 23, 2016

Brexit is now very close to a reality - JKHC-NEWS(1)

Brexit is now very close to a reality. As of 4 p.m. Greenwich mean time. The LEAVE votes are 900,000 ahead of the STAY votes with about 5 million votes to be counted. I think the LEAVE campaign has won. This is historic for the better or for worse. I think financially and economically it will be worse for both UK , EU and the world economy. The dream and ideal of a strong and unified Europe started in the 1960s with the Common Market has been shattered. I think the main reason for the victory of the LEAVE votes is immigration. Very unfortunately this also reflects on the fast changing world political move to the far right ( another form of extremism that lead to the rise of Hitler and his likes ). Look at the near win of the far right in electing a president in Austrian a month or two ago and the popularity of Donald Trump if US politics. However, we must respect the choice of the people under the democratic principle and endure the consequences regardless.

What will happen :-

(1)         Far right views means protectionism politically and economically. This must mean less free trade, less cooperation and less freedom of movement for factors of production and less competition reducing efficient utilisation and distribution of resources.  There will be economic recession in UK which will inevitably affect world trade adversely.
(2)         History has taught us that protectionism and far right views will generally lead to isolationism like USA before WWII. This will be bad for world cooperation which should be improved to face global problems.
(3)         Immigration is a doubled edged sword. While it will be a burden to the host country talents among the migrants will ultimately contribute to the economy of the host country.
(4)         EU originally formed to counter the economic might of USA to provide more world competition will be weakened.
(5)         Likewise, national defence and military unity most importantly against Russia will be considerably weakened.
(6)         Scotland may seize on the opportunity to become independent from UK or even choose to remain in the EU if her citizens so wish.
(7)         The British credit rating and the Pound Sterling will suffer.
(8)         The world financial market will experience turmoil because of the uncertainty created by Brexit at least in the short term,
(9)         The success of the LEAVE campaign against clear financial advice may even inspire the Donald Trump’s US presidential bid with more US voters embracing the new idea of “ no need for political correctness “ which means no need for rational and practical considerations.
(10 ) David Cameron will most probably have to resign.
UK has always been in a privileged position in the EU as reflected by the following:-

(1)         UK is allowed to use her own currency ( the Pound Sterling instead of the Euro ) meaning she can follow her own policy with regard to interest rate as a monetary tool.
(2)         UK is allowed to place limit on social benefits to immigrants from other EU countries.
(3)         UK is geographically distant from the current influx of war refugees.
(4)         UK was given more concessions in the recent negotiation with EU on the Brexit issue.


There is strength in numbers but one cannot both have the cake and eat it. There must be some price to be paid in order to enjoy EU membership and benefits. Unfortunately, UK’s majority citizens have chosen not to pay the price but rather to face almost certain economic recession and other uncertainties such as national defence in leaving the EU. Let us hope the fall out from UK’s leaving EU will not cause another global financial crisis.




China's democracy village demonstrates against authority - HK Free Press

22 June 2016 16:57 Catherine Lai3 min read

Around 3,500 villagers in Wukan marched in the streets on Tuesday calling for the release of their detained leader, despite action taken by authorities to head off protests.

Students protest in Wukan. Photo: Apple Daily.
The Guangdong village made international headlines in 2011 after residents opposed police for months in a standoff over illegal land seizures. As a result, the provincial government allowed the villagers to elect their own leaders. After Lin Zuluan, Wukan’s elected village chief, was taken away by police early Saturday morning under suspicion of graft, villagers took to the streets on Sunday to call for his release. Since then, police have summoned six villagers who took an active role in the protests.
‘Give us back our secretary’
According to Apple Daily, villagers gathered in the village square and started marching around the village at 4:15 pm, foregoing visits to government offices that were originally planned. Participants waving red Chinese national flags chanted “give back our secretary” and “give back our land.”
A video from i-Cable News showed students leaving school early to participate in the protests, despite the fact that the school had extended the school day to keep them off the streets.
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The video also suggested that authorities had tried to make students sign documents promising they would not protest. Schools also reportedly attempted to obtain their parents’ personal information.

Tuesday’s press conference showing Lin’s confession. Photo: Apple Daily.
The protesters were led by Wei Yonghan, who had previously been summoned by the police. Yang Chen, Lin’s wife, did not participate in the march. i-Cable’s video showed that police were present at the protest, but did not interfere.
In an attempt to head off the demonstration, on Tuesday morning, authorities called a press conference in which they showed a video of Lin “confessing” to accepting kickbacks from village projects.
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They also accused Hong Kong media outlets such as Apple Daily of inciting, planning and directing events in Wukan.

Students protesting in Wukan. Photo: Screenshot from i-Cable News video.
In response, Apple Daily said: “Our reporters were conducting regular interview activities. They were absolutely not inciting, planning, or directing. [Authorities] should not discredit the media to shift eyelines.”

The HK Alliance’s protest on Tuesday in support of Wukan villagers. Photo: League of Social Democrats Facebook page.
China Digital Times released a leaked directive allegedly issued by authorities to the media on Tuesday. Referring to the protests and arrest of Lin, it said: “Websites are strictly prohibited from releasing or re-publishing any news, photos, video, or information related to the mass incident in the village. All websites are to strictly control related commentary, firmly punish the accounts of those who maliciously distribute information, and report progress to superiors.”
On Tuesday, the Hong Kong Alliance in Support of Patriotic Democratic Movements of China also organised a protest in Hong Kong in support of Lin’s release.

Wednesday, June 22, 2016

No British PM has promoted EU membership benefits since 1997 - Independent

In many ways, it is no surprise that we stand on the brink of Brexit. No major British politician has made a positive case for EU membership since Tony Blair’s short-lived attempt in 1997 to end what he called our “half in and half out” relationship with Europe.
If we vote to leave, David Cameron will be blamed by politicians who wanted to remain for his unnecessary and reckless gamble of an in/out referendum. But it would not be all his fault. I have watched our prime ministers perform at EU summits since 1987 when Margaret Thatcher in power. “Perform” is the right word because it was usually a performance aimed at a domestic audience. Of course other EU leaders played the same game, but most were committed to a vision of European co-operation and solidarity that Britain never was.
After Thatcher’s handbag-wielding won the rebate on Britain’s EU contributions, her successors in Downing Street, egged on by most of our newspapers, felt it necessary to portray the EU as a never-ending battle between us and them. Our prime ministers played a zero sum game, instead of explaining the inevitable need  for compromise in a club that expanded to 28 members.

They trumpeted our gains as something won from a hostile enemy, and rarely explained the positive benefits of EU membership.

What's the European Parliament ever done for us?

John Major tried to put Britain “at the heart of Europe” but ended up declaring “game, set and match”. His pro-EU stance sparked the rebellion among Tory Eurosceptics, who gradually raised their sights from reform to withdrawal – a campaign that could culminate in a remarkable victory today.

Blair sold the UK to the rest of the EU, his high water mark being a defence co-operation deal with France in 1998. But during his “walking on water” phase, he missed the greatest opportunity to sell the EU to the British public. Although being pro-European was a central part of New Labour’s modernising project, Blair preferred appeasing Euroscepticism to tackling it head-on.

Blair saw joining the euro, the EU’s central project, as Britain’s “destiny” but the decision was sucked into the power struggle between him and Gordon Brown, who rightly blocked early entry.  Blair’s pro-European dream ended in failure.

By the time Brown succeeded Blair, the new Prime Minister’s relationships with other EU leaders were sour. As Chancellor, he had angered fellow finance ministers by picking an item on their agenda on which there was pre-cooked agreement, “demanding” such an outcome in media briefings before the meeting and declaring victory afterwards. Bemusement among his counterparts turned to anger.

Cameron, scarred by Major’s struggle to lead an ungovernable party, told the Tories to stop “banging on about Europe”.  But he shied away from a showdown with his Eurosceptics, preferring to pander to them –  a big mistake, because any concessions were gobbled up and quickly followed by more demands. Although there was no great clamour from the public, the rebellion within and the external threat from Ukip persuaded Cameron to offer an in/out referendum in 2013. The die was cast.
To win the Tory leadership, Cameron had pledged to take Tory MEPs out of the mainstream centre –right EPP group, whose figurehead is Angela Merkel, the most powerful figure on the EU stage.
The decision returned to haunt him. As Prime Minister, Cameron found himself with only one ally when he “vetoed” an EU fiscal pact in 2011. The rest of the EU went ahead with it anyway.
At the Brussels summit, I asked Cameron how it served the national interest for us to be so isolated. He replied that it was about “doing the right thing.” It was really about getting another headline in the Eurosceptic papers.

He made the same error in a doomed attempt to stop Jean-Claude Juncker becoming European Commission President. Realising but not admitting his earlier mistakes, Cameron adopted a much more conciliatory approach towards other EU leaders in a frantic renegotiation of Britain’s membership terms. But he had so little credit in the bank that he won very few concessions.
Unable to fight the referendum on such a wafer thin deal, he had to rely on the economic risk of leaving the EU.
Nor could Cameron run a positive campaign about the EU’s benefits. A two-month referendum campaign was never going to turn round 30 years of Brussels-bashing by many of our politicians and newspapers, often based on myths and the spectre of a phantom super-state.

Our self-imposed, semi-detached status means, I believe, that we would get a rotten deal if we leave. You could hardly blame our EU “partners” because we have only ever been half in. They want us to stay but would probably want a quickie divorce if we decide to walk out.
The attitude of other EU leaders would inevitably be shaped by what is best for them. Our game of us versus them would reach its apotheosis, and we might not even be allowed in the room when they discuss the divorce settlement.
A desire to discourage demands for In/Out referendums in France, Denmark and the Netherlands by giving the UK bad exit terms, would trump any desire not to punish an always rather annoying former partner. As the Greek euro crisis showed, we should never underestimate the determination to keep the EU project alive.
The result: Brexit would mean a worse deal on trade and co-operation than we have now. Worth thinking about when you vote.

Warren Buffett Wants to Help Your Child Start a Small Business This Summer - TIME


Posted: 20 Jun 2016 04:00 AM PDT

Just in time for summer, the folks at Warren Buffett’s Secret Millionaire’s Club have condensed the Oracle of Omaha’s business savvy into a digestible book for kids. It is meant to stir the passions of teen and pre-teen entrepreneurs, and give them a meaningful alternative to video games and the swimming pool and, perhaps, the consequences of Mom and Dad’s mounting impatience.
Much of the wisdom in the colorful and animated How to Start Your Very First Business is already available online via the Secret Millionaire’s Club website. The site features 26 “webisodes” of animated youngsters grappling with the profit-loss aspects of things like lawn cutting, dog walking, and running the ubiquitous lemonade stand. But the book adds context, step-by-step instructions, worksheets, and goes beyond clichéd ideas.
Authors Julie Merberg and Sarah Parvis, with guidance from Buffett, serve up 21 business ideas for kids. Their suggestions include filming and editing highlight reels for student athletes seeking a scholarship, collecting yard waste to compost and later selling the soil, decorating skateboards, blogging about local events and selling ad space to local businesses, being a DJ at parties, and building and selling birdhouses.
Buffett is involved because he believes entrepreneurship at an early age introduces and reinforces habits that will breed long-term success, even if the summer venture doesn’t amount to much. “Learning the value of being honest, being willing to take risks and fail, and protecting your reputation are among the lessons that form the fabric of success,” Buffett writes in the forward.
Read next: How a Kiddie Roth Can Double Your Child’s Retirement Savings
These themes are explored in the book alongside basics like start-up and operating costs. Buffett’s guiding principal is that the best investment one can make is an investment in oneself. The book champions education, hard work, honesty, service, passion and presentation. The authors use plenty real-life examples of kids and their businesses, and call on Buffett frequently for inspiring “words from Warren.” In a section on growing your business, Buffett notes, “the more you learn, the more you’ll earn.”
This book is not likely to light a fire under the average 12-year-old. It has serious layers of business advice, albeit written simply and in practical terms. So it’s best suited for kids who already have demonstrated an entrepreneurial spirit and are looking to give their venture a real shot.
I could have used it myself. As a youngster in the open spaces of Missouri, I bought firecrackers and bottle rockets in bulk and intended to resell them to classmates before the Fourth of July. But when I made my bulk purchase in May I did not account for school being out for the summer at peak firecracker season. How would I market them? This book has a chapter on marketing, including how to use free advertising boards at the supermarket, community center or post office, how to use social media and build a free website, and even how to get a local reporter’s attention and write a press release.
Read next: New Marvel Comic Aims to Teach Kids Money Smarts
The book also explains how to differentiate your product or service, find the right location, and grow your business—all major concerns to Fortune 500 corporations and adaptable to a lemonade stand (offer a variety of flavors, find a busy sidewalk). The idea here is not to make a lot of money; it’s about exposing kids to an experience that will offer valuable life lessons.
In words from Warren: “Can you really explain to a fish what it’s like to walk on land? One day on land is worth a thousand years of talking about it, and one day running a business has exactly the same kind of value.” Two days, or a week or a month, has even more value—and it simply cannot be found in a video game or at the swimming pool.

Tuesday, June 21, 2016

Soros warns on serious consequences of Brexit - BBC News

Legendary investor George Soros has warned of "serious consequences" for British jobs and finances if the country leaves the EU.
Writing in the Guardian, he said sterling would "decline precipitously" if the Leave camp wins Thursday's vote.
He made a fortune betting against the pound on Black Wednesday in 1992, when Britain left the ERM, and said Brexit would cause even bigger disruption.
But Vote Leave said the UK would be more prosperous outside the EU.
"The EU is costly, bureaucratic and blind to the impact it has had on people's wages and soaring energy bills," said Vote Leave chief executive Matthew Elliott, who accused Mr Soros of wanting to give more power to Brussels

Mr Soros said in his article that leaving the EU would see sterling fall by at least 15%, and possibly more than 20%, to below $1.15 from its current level of around $1.46.
"The value of the pound would decline precipitously," he writes. "It would also have an immediate and dramatic impact on financial markets, investment, prices and jobs.
"I would expect this devaluation to be bigger and also more disruptive than the 15% devaluation that occurred in September 1992, when I was fortunate enough to make a substantial profit for my hedge fund investors.
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"British voters are now grossly underestimating the true costs of Brexit. Too many believe that a vote to leave the EU will have no effect on their personal financial position. This is wishful thinking."
'Considerably poorer'
He warned that the Bank of England's ability to respond to a recession or fall in house prices was limited, with many monetary tools already having been used to steer the UK out of the global financial meltdown.
Sixty years of investing experience had taught him that the only winners would be financial speculators, he said.
Mr Soros writes: "Today, there are speculative forces in the markets much bigger and more powerful. And they will be eager to exploit any miscalculations by the British government or British voters,"
"Brexit would make some people very rich - but most voters considerably poorer," Mr Soros said.
Sterling has already see-sawed in the run-up to the referendum as investors speculate on the likely outcome.

Monday, June 20, 2016

Why Disney’s New Shanghai Park Is Its Most Ambitious Yet - TIME


Posted: 16 Jun 2016 07:57 AM PDT

Walt would be proud.
The Walt Disney Company seems to have spared no expense in building its sixth theme park which opened June 16 in Shanghai, China after a decade of planning and five years of construction. The $5.5-billion Shanghai Disneyland is a colossal 963-acre park three times larger than Hong Kong Disneyland and anchored by the tallest castle in any Disney theme park. The joint venture with China-based Shanghai Shendi Group, which owns 57% of the park, is the glitziest in a spate of entertainment firms rushing to establish themselves in the world’s most populous nation, one run by a regime that increasingly views entertainment as a vital component of its soft power.

The meticulously orchestrated opening comes amid a series of tragedies in Disney’s home market, including the death of a 2-year-old boy June 14 when an alligator dragged him into a lake at Orlando, Florida’s Walt Disney World Resort. Disney CEO Robert Iger called the child’s family from Shanghai and the president of the Walt Disney World Resort, George Kalogridis, left China for the U.S. after news of the attack. During the ceremony, Iger and Chinese Vice Premier Wang Yang both read letters from each country’s presidents hailing China and America’s relationship.
As well as a massive financial investment, Disney’s new park relies on technology the company hopes will augment all its parks. Shanghai Disneyland was designed by Walt Disney Imagineering (WDI) using Building Information Modeling (BIM), a 3D model-based process of designing everything from the Steamboat Willie entrance fountain to Roarin Mountain. Imagineers—Disney’s term of art for its enginneers—were able to couple these 3D models with tablets on site, while using the latest virtual reality headsets and DISH (Digital Immersive Showroom) technology to share their progress.
According to Mark Mine, creative technology executive at WDI’s Creative Technology Studio, DISH allowed imagineers to work across locations from Shanghai to Glendale, California and Orlando. The large white rooms work with projectors and 3D glasses, allowing multiple people to experience rides, attractions, and hotel rooms before construction even began in 2011. “We link our DISH’s together, which is also very important because as an international company we can load up a model in Orlando and have people walk through it simultaneously in Shanghai,” Mine said. “It allows us to do reviews across multiple sites. And that’s something that we’re going to continue to push and develop.”
Disney’s first theme park in mainland China is divided into six lands: Fantasyland, Treasure Cove, Tomorrowland, Gardens of Imagination, Adventure Isle, and Mickey Avenue.
Towering 196.8 feet above Fantasyland is the park’s Enchanted Storybook Castle, which includes retail, dining, and theatrical spaces, as well as two attractions. It’s home to Once Upon a Time, an indoor, walk-through exhibit of all the Disney Princesses that blends dioramas with screens displaying classic Disney animation. The Voyage to the Crystal Grotto boat ride travels through Fantasyland and underneath the castle for its finale, which features music and animation from films such as The Little MermaidAladdinMulan, and Beauty and the Beast.
Visitors walk through the Alice in Wonderland Maze during a trial run at Shanghai Disneyland ahead of its official opening, June 8, 2016. Qilai Shen—Bloomberg/Getty ImagesVisitors walk through the Alice in Wonderland Maze during a trial run at Shanghai Disneyland ahead of its official opening, June 8, 2016.Fantasyland, the largest land in the park, is also home to the Seven Dwarfs Mine Train roller coaster, the Peter Pan’s Flight dark ride, and the Hundred Acre Wood with Winnie the Pooh dark ride (all of which are also in the Orlando Magic Kingdom). The outdoor, walk-through Alice in Wonderland Maze is home, no wonder, to characters such as the Cheshire Cat, the Red Queen, and others from the films set within a leafy labyrinth.
With Pirates of the Caribbean: Dead Men Tell No Tales hitting theaters next summer, the pirates’ life remains popular with Disney fans worldwide. Treasure Cove is the first pirate-themed land in a Disney park, featuring a full-sized pirate ship, explorer canoes for paddling in the lagoon, and Barbossa’s Bounty restaurant. These are the kinds of integrations Disney hopes will endure its properties to Chinese tourists in the country’s rapidly rising middle class.
Then there is Tomorrowland, originally designed by founder Walt Disney some 60 years ago. It has been thrust into the future with a pair of tech-driven rides that are exclusive to Shanghai. The most talked-about ride in the park is TRON Lightcycle Power Run, which turns Disney’s video game film franchise into the fastest attraction at any Disney park. Guests enter the neon blue-glowing world of TRON and board a train of two-wheeled Lightcycles, which have riders hunched forward as if they’re piloting the speedy bikes. Aside from a brief stretch outdoors, the ride immerses guests inside at speeds of 62 miles-per-hour as they race to capture eight energy gates.
Disney is also cross-promoting two of its most recent—and popular—brands with Star Wars Launch Bay, which includes character interactions, set pieces, and props from The Force Awakens, and Marvel Universe, which has super hero and super villain interactions and a comic book art workshop.
Visitors take the canoe ride at Treasure Cove during a preview at Shanghai Disneyland, June 10, 2016. Lam Yik Fei—The New York Times/ReduxVisitors take the canoe ride at Treasure Cove during a preview of Shanghai Disneyland on June 10, 2016, in ShanghaiThe entire resort features 4.5G Wi-Fi from Huawei and China Unicom, which should help smartphone-obsessed guests share their experiences with friends on Chinese social media. Over one million guests had already previewed the Shanghai Disney Resort before the official opening. Tickets cost $57 for off-peak days and $75 for weekend and peak days, the least expensive of any Disney park worldwide.

Ticket Master to give free tickets as ordered by court - Independent

People have been fed up with Ticketmaster for decades, not least of all Pearl Jam, who - in 1995 - took the ticket seller to court (a battle they lost), soon after calling on their fans to boycott the website.
Finally, having overcharged concert-goers for years, Ticketmasterare paying the price. Last month, they settled a $400 million class-action lawsuit, leading to the company handing out dozens upon dozens of ‘free’ concert tickets.
According to Gawker, around 50 million people who bought tickets between 21 October 1999 and 27 February 2013 are entitled to free tickets.

Emails regarding the free tickets have begun being sent out under the subject, “Schlesinger v. Ticketmaster Class Action Settlement – Notice Regarding Discount and Ticket Codes.”


However, many fans are not receiving these emails, mainly because very few people have the same email address they had in 1999, so it may be worth checking your old Ticketmaster account. Just go to their website, go to your account, and click on “Active Vouchers.”
Hold on a second, though, as those vouchers won’t necessarily get you entry to every event. According to the report, they’re only valid for a limited list of eligible events, the link for which is currently dead.These events only take place at Live Nation-operated venues and will be chosen by Live Nation.
Meanwhile, the ex-CEO of Ticketmaster recently revealed why you will never be able to buy tickets to the biggest gigs.

Sunday, June 19, 2016

Between the borders - more complicated than thought - Economist

Of all the glories contained in the French foreign ministry, the most glorious is the Salon de l’Horloge. Sumptuous in gold and marble, graced by chandeliers and silks, washed with light slanting up from the River Seine, this is where old men thrashed out the Treaty of Versailles after the first world war. The Kellogg-Briand pact was signed here in 1928, pledging to outlaw the aggressive resort to arms for ever. And, on April 18th 1951, exalted by the trappings of empire, ministers from West Germany, Italy, France and the three Benelux countries put their names to the Treaty of Paris, the founding document of what, four decades later, was to become the European Union.
Fitted out in the trappings of a scheme to manage the production of coal and steel, the treaty was at its heart a Franco-German peace accord. In keeping with its surroundings, its physical instantiation was sumptuous and symbolic. In his memoirs Jean Monnet, its progenitor, describes a document printed in France on Dutch paper with German ink, gathered in a binding from Belgium and Luxembourg and decorated with a bookmark woven from Italian silk. What Monnet does not say is that, because the negotiations had been so frantic, the sheet of paper the ministers actually signed had been left blank.
Were they alive today, those ministers would be amazed by how their successors have crammed that empty page full to bursting with institutions and countries. The community started out with six members, four languages, 177m people and (in 2014 money) $1.6 trillion in annual output. Today’s EU has 28 members, 24 languages, 505m people and a GDP of $19 trillion.
More generous than Versailles and more practical than Kellogg-Briand, the Treaty of Paris has blossomed into a unique supranational form of government. The EU has a court, a parliament, an executive and a president (several presidents, in fact), an apparatus much of which can be traced back to that spring day in 1951. And it has been fundamental to a great historical shift. In a continent whose history is written in blood, the idea of France, Germany or any of the large European states taking up arms against each other has become unthinkable.
And yet those ministers would also be dismayed by how much today’s Europeans have to complain about. A common currency they never envisaged has done great damage and provoked roiling discord. Unemployment in the euro zone has been 10% or more since September 2009 (excepting a blessed few months in 2011 when it dipped as low as 9.8%); among the young it hovers at around 20% across the EU. A flow of migrants comparable only to the post-war Exodus still fresh in the minds of those men in the Salon de l’Horloge is closing borders and deepening divisions. Eurosceptic parties are rising across the continent, including in Germany. Last month in Austria a far-right, anti-migrant, Eurosceptic candidate only just missed being elected head of state. If Britain votes to leave the EU on June 23rd, it will break a European taboo; there will be growing pressure for similar referendums elsewhere.,,

Only a few years ago pundits were writing books with titles like “The European Dream” and “Why Europe will run the 21st Century”. Yet today Jan Zielonka, professor of European politics at Oxford, reports that when he talks to European policymakers he is “stunned by their scepticism”. In May the president of the commission, Jean-Claude Juncker, lamented that: “in former times we were working together…we were in charge of a big piece of history. This has totally gone.” Donald Tusk, president of the European Council, is even bleaker, saying that: “the idea of one EU state, one vision…was an illusion.”
It always was. The myth around which the EU has grown is that ministers and their officials always planned gradually, but inexorably, to subordinate the nation state to a higher European order. In the words of Vaclav Klaus, a former prime minister of the Czech Republic, countries would “dissolve in Europe like a lump of sugar in a cup of coffee”. But although Monnet and some of those around him did indeed dream of a European superstate, the politicians who made use of their ideas did not. The pooling of sovereignty found in the treaties first of Paris and then of Rome—which created the European Economic Community in 1957—was designed to save the nation state, not bury it. Europe’s governments have jealously guarded their powers ever since.

If one key aspect of Europe has stayed constant, another has come full circle. Monnet’s scheme was an answer to the problem of Germany: too large to co-exist as a first among equals, too small to dominate its neighbours without resort to force. It was, for a long time, a good answer. For 65 years Germany has been prepared to subsume itself in Europe and, in exchange, has been allowed to act as a full member of the Western alliance. Today, by dint of unification and EU enlargement as well as its mighty economy, Germany runs Europe.
Nobody thinks Europe’s great power is about to take up arms. But what sort of union does it want? What sort of union will its partners—especially France—be prepared to accept? And what sort of reform could bring such a new Europe about? The Treaty of Paris was made possible by an unrepeatable, galvanising set of circumstances born of two world wars and the new Soviet threat. No comparable external forces are at play today; nor is there any obvious internal dynamic that can replace them.

WHAT is Europe?” asked Winston Churchill in May 1947. “A rubble-heap, a charnel house, a breeding ground for pestilence and hate.”
The war in Europe had killed 36.5m people. In many countries more civilians had died than soldiers. In his epic account of the aftermath, “Postwar”, the historian Tony Judt records that, in Yugoslavia, war destroyed 25% of vineyards, 50% of livestock, 60% of the roads, 75% of railway bridges, 30% of industry and 20% of homes.
Liberation and defeat had been hard. Allied victories over Germany’s occupying forces did not save the 16,000 people who starved in the Dutch “hunger winter” of 1944/45. In the three weeks after Soviet troops took Vienna 87,000 women were reported to have been raped. The daily ration in the American zone of occupied Germany in June 1945 was 860 calories, a third of what is recommended today. The intergovernmental arrangements that grew up in the 1950s would have been impossible without these enormities.
The post-war desolation was unlike anything since the Thirty Years War of the 17th century, a religious paroxysm which killed a similar share of the continent’s population. The Treaty of Westphalia, signed at that war’s end in 1648, shaped how Europe thought about conflict for the next three centuries: states should not interfere in each other’s domestic affairs; the way to contain countries’ ambitions was by maintaining a balance of power.

As the modern state evolved, that balance became harder to manage. In the 18th century Britain forged its constituent countries into a United Kingdom with imperial reach. Revolutionary France became the first nation to harness all the state’s resources to the waging of war; Napoleon’s Grande Armée conquered the continent. As the 19th century wore on, governments exploited Blut und Boden—blood and soil—as a tool to create national identities that increased their power. Compilations of folklore, tales of illustrious forebears, genealogies of language and theories of race were all put to work bolstering these identities. “The educated, multilingual cosmopolitan elite of Europe grew weaker,” writes the historian Norman Davies, “the half-educated national masses, who thought of themselves only as Frenchmen, Germans, English or Russians, grew stronger.”
After 1814 Germany invaded France five times. After 1914 the antagonisms and ambitions of European nation-states with colonies on almost every continent twice dragged the whole world into war. Far-fetched as it seems today, the dread in 1945 was that Germany would rise up yet again, as a Fourth Reich. Fear of Germany was compounded by fear of Russia, especially after the Soviet Union backed a Communist coup in Prague in 1948.
This, then, was the context for the Treaty of Paris. All across Europe states had failed their people. Some European countries had embraced Fascism. Others had crumbled. War had become total. The very idea of Europe had failed.
Beset by hunger, exhaustion and fear, governments desperate to ensure peace sought to extend their care of ordinary people.As a British historian, Alan Milward, has argued, to be legitimate in this fractured world the state had to strive to bring prosperity, employment and welfare to new voters—factory workers if they were not to be tempted by Bolshevism, and farm workers if they were not to be tempted by Fascism, as they had been when agricultural wages collapsed in the 1930s.
It was from this need to prevent war and safeguard the state that the European communities arose. The link was clearest in France. Prosperity required West German raw materials; France had depended on German coal since the 1890s, and by the 1930s had become the world’s largest coal importer. At the same time Germany had to be kept from renewed aggression. In 1945 Charles de Gaulle felt the best way to meet these goals would be to put the coal and steel industries in the Ruhr and Rhineland permanently under French control. France would guarantee its own safety by keeping West Germany as an agrarian state.

“A leap in the dark” –Robert Schuman on the Treaty of Paris
This was vetoed by the Americans and the British, partly because they worried that a poor, suppressed West Germany would either rebel or fall under Soviet influence. As a fallback, in 1946 and 1947, France flirted with the Soviet Union about an alliance in the East, an old strategy based on the balance-of-power logic of the Treaty of Westphalia. Stalin was not interested.
So it was that in 1949 France’s foreign minister, Robert Schuman, resorted to what European mythmaking casts as a bold new vision and history records as a third choice close to a last resort: Monnet’s plan for a Coal and Steel Community. The scheme, which Schuman presented in a “declaration” in the Salon de l’Horloge, was a trade treaty with a novel twist. It created a High Authority, which stood above the six governments, to administer its provisions. All the participants were equal and the pact was open to new members.
Schuman told the press the plan was “a leap in the dark”. Yet what is striking is not how far-reaching it was, but how tentative. The idea of European union had a long history—Victor Hugo had talked of a United States of Europe as early as 1849. Perry Anderson, a historian, has counted at least 600 publications between the wars proposing a united Europe. Next to almost all such schemes, the Treaty of Paris, with its focus on schedules of heavy-industrial output, was as dry as coal dust.
Why was it so modest? In part for the simple reason that the states wished to give up as little as possible. But in part, too, it was the tenor of the times. Grand schemes to remake society were tainted by Nazism and Bolshevism. In the second world war Albert Speer, Hitler’s chief architect, had drawn up plans for a pan-European political order. Pierre Pucheu, executed for his role as a senior administrator in Vichy France, had called for a single currency. There was a general suspicion of politics and passion. Raymond Aron, a French philosopher, thought that modern society was “to be observed without transports of enthusiasm or indignation”. “Where the first world war had a politicising, radicalising effect,” Judt writes, “its successor produced the opposite outcome: a deep longing for normality.”

In those early years the states guarded their privileges jealously—to the fury of Monnet and his band of federalists. Take, for instance, a proposal in 1950 to create a European army as an alternative to West German rearmament under NATO (which had been created the previous year). During the Korean war, seen as a sign of menacing Soviet ambition, the idea made progress. But the six governments found it hard to agree on how a European army should be run; French Gaullists hated the loss of sovereignty. America threatened an “agonising reappraisal” of relations if France voted against the defence treaty. Nevertheless in August 1954, after the Korean war was over, the French National Assembly rejected the European Defence Community by 319 votes to 264. The victors celebrated with a rousing chorus of the “Marseillaise”.
The same fate almost befell negotiations to broaden the Coal and Steel Community into the European Economic Community, a free-trade area known as the “common market”. At a conference in Messina in 1955 the French agreed to study the plan only after a desperate late-night session between the enthusiastic Belgian delegate and his reluctant French colleague. A year later, the French prime minister, Guy Mollet, was still wavering. True to France’s perennial concerns about where its energy would come from he wanted an agreement on nuclear power (known as Euratom), but he was unsure whether the common market was a price worth paying.

On November 6th 1956 Konrad Adenauer, West Germany’s first post-war chancellor, visited Paris in an attempt to persuade the French to embrace the deal. He might have failed had it not been for the fact Anthony Eden, the British prime minister, telephoned Mollet during their meeting to say that Britain, under pressure from the Americans, had called off its military operation with the French and Israelis in Suez. Mollet was incensed; Adenauer seized the moment: “Europe will be your revenge.”
Other American encouragements for European institution-building were more deliberate. Writing in 1948 the diplomat George Kennan summed up the view in Washington: if Germany was restored without European integration, there would be a German attempt to dominate. If Germany was not restored, there would be domination by Russia. America required a strong, prosperous Europe that settled the German question, and worked to that end. Without its support the enterprise might have failed.
So, too, might it have done without Monnet. He was a remarkable man. Born in the department of Charente in western France, he left school at 16 and went to work in the family cognac business in London. Later he became deputy secretary-general of the League of Nations, served a stint in Shanghai and, during the second world war, acted for the British in Washington (John Maynard Keynes thought his success at procuring arms and equipment shortened the fighting by a year). Time and again, Monnet was able to call on his formidable American diplomatic and political connections to help clear away obstacles to his plan.
But he was not able to turn the politicians who were gingerly using his ideas into true believers. De Gaulle, whom Monnet suspected of bugging his phone, was an early and enduring sceptic. He dismissed Europe as “ce machin”—this thingummy—and put a break on anything that diluted national governments’ power that was to last long after the general retired to rural seclusion in Colombey-les-Deux-Eglises in 1969. In the early 1970s, the French foreign minister, Michel Jobert, asked Edouard Balladur, later to be finance minister and prime minister, what the term European Union actually meant. “Nothing,” Mr Balladur replied, “but then that is the beauty of it.”
Today the European project is seen through the haze of the 1980s, at a stage when the original common market had attracted new members in the north—Britain, Ireland and Denmark—and in the newly democratic south—Spain, Portugal and Greece. Jacques Delors, another French finance minister, oversaw a burst of integration during his tenure as president of the European communities. It brought the single market, the European Union, limits on the scope of governmental vetoes, extra powers for the European Parliament and, eventually, the single currency. The collapse of the Warsaw Pact and, later, EU membership for the former Communist countries only cemented the impression that Europe’s advance was part of the order of things.
It suits the EU’s devotees and its critics alike to treat the strengthening and deepening of the Delors years as a default condition. The period conforms to the founding myth of an ever-closer union run out of Brussels by a powerful bureaucracy, something devotees treat as inevitable and critics as conspiracy. In fact, though, Mr Delors was the exception. His achievements were possible chiefly because the member states wanted to use the EU machinery as a way of catching up with the economic liberalisation that was bearing fruit in America and Britain under Ronald Reagan and Margaret Thatcher. For her part, Thatcher went along; she saw the single market as the sort of Europe that Britain wanted.
The EU was not predestined, but makeshift. In the frantic politics of the post-war world other Europes were possible. But the one that actually came into being has been oddly durable. The fretful union of today, dominated by governments that scrap and bicker and backslide, is not an aberration. It is how things began. That blank piece of paper in the Salon de l’Horloge was not so much a symbol of Europe’s unwritten potential as of how integration would be hard-fought and uncertain. Even if some countries are ready to give up certain powers from time to time, others are not, and nothing happens without a consensus. Leaders rarely act without a crisis to spur them on, and as a result their remedies are often inadequate.
Pro-Europeans look back to a golden age when statesmen were fired up by a common purpose. But such elite enthusiasm was never universal, and prevailed only briefly. Things might have been different had the idea of Europe won over Europe’s people.

Over lunch in an Alsatian restaurant, André Klein declares that nationalism is the disease and Europe the cure. A kindly man dressed in a round-collared Alsatian tweed jacket, Mr Klein is a native of the town of Colmar, where the cobbled streets are lined with half-timbered houses.
When he was born, in 1938, his home town was in France, as it is today; but for almost half the previous century it had been in Germany, and it soon was again. His first memory is of being dug choking from the rubble after an Allied bomb fell on his house. He was educated at the Ecole Nationale d’Adminstration—ENA—alma mater of many of the republic’s top civil servants and politicians. Though he is too self-effacing to say so, he is a model citizen of the EU. “I am European more than French,” he says. “People here feel deeply that they are European. It is necessary for peace. They and their ancestors have seen too much conflict.”
For much of history his part of the world was a contested borderland. The Rhine, 20km east of Colmar, was the Roman frontier. The town has been part of the Holy Roman Empire and of a league of city states; in the Thirty Years War it was briefly conquered by the Swedes before the Treaty of Westphalia gave it to France. The subsequent centuries of turn and turnabout between Germany and France strengthened people’s regional identity; their links to whichever capital city claimed them at the time never grew that strong.

“People here feel deeply that they are European” –André Klein
Now that this borderland finds itself in the heart of Europe, the frontiers barely exist. Not far down the A35 is EuroAirport, serving France, Switzerland and Germany. On a recent Sunday French and German protesters met on the banks of the Rhine to demonstrate in two languages against the nearby nuclear power station at Fessenheim. “Radioaktivität kennt keine Grenzen”, one banner read: radioactivity knows no borders.
One border that is pointedly ignored by subatomic particles lies between France and Switzerland at Meyrin, 300km from Colmar. The mighty accelerators of CERN, a joint European physics laboratory, straddle the frontier there, their beams of protons whirling between the two countries at almost the speed of light. For several years Mr Klein worked as an administrator at CERN. He reminisces about an international meeting at the lab during the cold war. The atmosphere was frosty, but when the chairman took off his jacket and the rest followed, Chinese, Russians, Americans and Europeans were suddenly just physicists. Mr Klein sees no conflict in multiple identities. He is simultaneously a native of Colmar, an Alsatian, a Frenchman and a European.
Marco Zanni often drives past Colmar on his way from Milan to the European Parliament in Strasbourg where, at the age of just 29, he is an MEP for Italy’s Five Star Movement. He, too, sees himself as a European. He studied business in Barcelona alongside people from across Europe. He was an investment banker in Italy. He is polyglot.
But Mr Zanni thinks that the EU—and especially the euro—is driving Europe apart. His father, an engineer who worked for Italcementi, a building-materials multinational, had to delay retirement because of Italy’s pension cuts during the euro crisis. He remembers a Greek student mocking a German classmate in the university in Barcelona, thanking him sarcastically for paying his taxes. The euro zone’s one-size-fits-all regime, he says, means debtors cannot decide their mix of policies. An obsession with austerity is preventing countries from restoring economic growth. The European Central Bank (ECB) is out of anyone’s control. “This is the time to say the euro failed,” Mr Zanni believes. The project is turning “Italians and Germans one against each other.” There is “no community”, he says. “We don’t have a European people.”
Somewhere between the 78-year-old from Alsace and the 29-year-old from Milan, Europe has lost its way. Plenty of people still support the EU, some with passion: young Balts who see it as a path to prosperity and a source of security; Belgians who hope for a way to cope with their divisions; Italians and Romanians who seek a bulwark against their own crooked politicians. But a European identity remains elusive.
When, in 1861, Massimo d’Azeglio, an Italian statesman, said “We have made Italy. Now we must make Italians,” he was outlining what seemed like a reasonable project. Germany was doing much the same with Germans; Britain had done something similar with Britons. But the tools which forged nations in the 19th century—forebears, symbols, cultural achievements—look unacceptably clumsy when used by Brussels today.
The EU created a pantheon of European heroes. Erasmus and Galileo made it, but for some reason Grundtvig and Comenius never caught on. It has something that looks like a flag but which, according to Luuk van Middelaar, a Dutch historian, is officially a “logo”, because the member states balked at flag-hood. It has borrowed an anthem, “The Ode to Joy”, from Beethoven, but it remains a creature of the concert hall rather than the heart.
In 1977 the commission proposed “European Rooms” in museums, but was beaten back by member states. In 1990 “Europe—A History of its Peoples” was published simultaneously in eight languages, laughably depicting Homo erectus as “the first Europeans” and lamenting Europe’s being “outstripped by the Neolithic revolution” in the Middle East in 8000BC. An accompanying textbook caused rancour: the British were upset that Sir Francis Drake, whom they see as a hero for sinking the Spanish Armada, was dismissed as “a pirate”; Germans found accounts of Gaul being raided by “barbarians” from across the Rhine degrading, and had the term replaced by “Germanic tribes”.
For many years such silliness did not matter. After France rejected plans for a European army in 1954, Europe focused on what Mr Van Middelaar calls the “low politics” of tariffs and trade, rather than the high politics of grand strategy. Such an arrangement never needed much support from voters, and those voters did not care that the European project was technical and remote.

“We don't have a European people” –Marco Zanni
But the EU has since entered people’s lives. Mr Delors’s burst of integration began in 1986 with the Single European Act, the first ambitious reworking of the Treaty of Rome. This created a single market, with consumer protection and product regulation. Six years later, the Maastricht treaty, a flawed attempt to deepen the union as a response to the perceived crisis of German unification, provided for an end to the franc, the lira and the escudo. When the eastern countries joined the EU, the rules on freedom of movement brought Polish plumbers and Romanian roofers into everyday contact with Parisians and Londoners.
The EU therefore needed popular legitimacy. One approach to providing it has been to create new political power structures in the hope that political identity would follow. Thus in 2009 the directly elected European Parliament was given the role of adopting EU legislation alongside governments. It also now helps choose the president of the commission.
But a parliament does not produce a people. A survey in 2014, before the most recent elections, found that one in ten Britons could name their MEP in Strasbourg, compared with half who could name their MP in Westminster. Many voters treat elections to the European Parliament as national polls that offer a chance to register a protest against incumbent governments at home. As a result about a third of the institution meant to embody the spirit of European union turns out to be Eurosceptic. At the same time, the parliament knows that most of the clout still lies with the member states. It therefore obsesses about EU process and, as if it were a lobby group rather than a legislature, spends its time campaigning for more powers and bigger budgets. That only makes it more remote.
In 2001 the EU tried to put this right with a constitution to establish the union as a covenant directly between Europeans, rather than a deal stitched up between their governments. The spirit of Philadelphia was never far from the mind of the convention—especially that of its president and would-be Madison, the former president of France, Valéry Giscard d’Estaing.
However the constitution’s 446 articles and 36 supplementary protocols spread over more than 500 pages. In Mr Anderson’s damning judgment, it was “an impenetrable scheme for the redistribution of oligarchic power”. In 2005 voters in the Netherlands and—to the great surprise of their rulers—France roundly rejected it. It was then converted into the Lisbon treaty. Voters in Ireland gave that the thumbs down, too, before being bullied into ratifying it.
The changes that sprung from Maastricht and the creation of the euro could not be justified on the basis that a single European electorate had voted for them: such an electorate didn’t exist. Instead, the EU has had to fall back on what is known as “output legitimacy”—the idea that Europe is justified by results. And it does indeed bring many benefits. Not only peace and markets, but weight in negotiations over such things as trade and climate change and influence in disputes with Iran and Russia, not to mention the automatic right to travel and work abroad.
But output legitimacy fades. Long-standing benefits like peace are soon taken for granted. Governments erode trust in “Brussels” by blaming the EU for decent but unpopular deals that they have signed up to. And output legitimacy is also by its nature weakest when most needed. The time when a system requires propping up is when it is resented—which is when any faith that it is doing good will be at a low ebb.

Writing about world order, Henry Kissinger, a former American secretary of state, observes that a geopolitical system must balance power and possess legitimacy if it is to be stable. The system faces challenges when power shifts or the sources of legitimacy alter. The Soviet Union collapsed when Russian power declined; imperial China was overthrown when the Qing dynasty could no longer command loyalty.
As Europe developed, champions of Monnet’s dream thought the source of its legitimacy should shift from governments to the citizens. But the citizens have resisted. At the same time power has shifted. After the fall of the Soviet Union first reunification and, later, the accession of the countries of central and eastern Europe increasingly put Germany in charge. The euro has strengthened Germany further. When the euro system has required someone to write a cheque, the pen has been brandished by Angela Merkel.

Monnet once said that Europe’s six founding countries had produced “a ferment of change”, starting “a process of continuous reform which can shape tomorrow’s world more lastingly than the principles of revolution so widespread outside the West.” It is an appealing vision; but the ferment has lost its fizz. A new settlement is needed. Unfortunately (in this respect) the forces at play today lack the nation-shaking urgency that brought the community together in the Salon de l’Horloge. And having failed to create enough Europeans like Mr Klein, the EU lacks the popular legitimacy it needs to bring about reform.
There is no lack of advice about how to make up for these deficiencies. One commentator thinks the missing ingredient is religious faith. Another reckons the EU went awry when it stopped being “boring”. Despite many countries’ chilly welcome to Syrian migrants, some still believe in the EU’s importance as a moral exemplar for a world trapped in the zero-sum calculus of the Westphalian state. There are those who call for a dramatic transfer of powers and politics to the centre. They are countered by fans of a radical decentralisation, down to the level of the region and city. Still others are drawing up blueprints for the EU’s dismantling.
Brexit is not the EU’s greatest problem. Whether Britain stays or goes, the union will have to grapple with migration and the euro, which are even more complex. Its progress will be hampered by economic stagnation. Unemployment will continue to feed populism and frustration with the elites. The fight will go on between debtors and creditors over austerity, debt relief and the ECB. To the extent that people feel economically hard-pressed, they will be even less inclined to accept immigrants. The Germans won’t accept freeriding, the easterners won’t accept a collective response, and the migrants will keep coming.
Those who look to solve this with a leap of integration are likely to be disappointed. The politics of pooling sovereignty has rarely been easy. Delay usually prevails. But Eurosceptics who see the EU as a house of cards are likely to be disappointed, too. When faced with an inescapable choice, leaders usually find a compromise to tide themselves over until the next crisis. They value the EU greatly and they rightly fear the consequences of its failure.
As ever, France and Germany will play an outsize part in deciding whether the deep problems of migration and the euro culminate in the development of a new stability or in collapse. France did not sign up to Europe as the junior partner, but Germany’s pre-eminence has turned it into one. Perhaps, with its growing population, it will recover its vitality. Or perhaps, weighed down by economic stagnation and the burden of the far-right, anti-EU National Front, it will become a disgruntled and disruptive force. If France rebels, muddling through will fail.
More important still is Germany. It no longer needs Europe as absolution for the second world war, and it has become too big to be just one power among many. At the same time, it is too small to carry the EU’s burdens alone. This is the German question today. German voters balk at a “transfer union” that sees their savings used to bail out countries in trouble. If transfers and debt relief are the price for holding Europe together, will Germany pay up? Or will it go its own way, with a coterie of close, like-minded followers? What are the borders of the possible?

If you take a train from Warsaw through the pine forests and the lakes to Poland’s frontier with Belarus, you come eventually to Krasnogruda. Once it was the family house of the poet Czeslaw Milosz. Today it is home to Fundacja Pogranicze, the Borderlands Institute, a place teetering on Europe’s rim.
Settled by Poles, Lithuanians, Russian Orthodox, Roma, Belorussians, Ukrainians and the odd Tartar, this soil has soaked up a lot of blood—as much as Alsace, maybe more. It is a long way from the statesmen and their aides wrangling over treaties and laying down history in the Salon de l’Horloge.

Krzysztof Czyzewski, the institute’s director, explains that nationalism here has separated families. People have had to decide whether they are, say, Polish or Lithuanian, when they are often a bit of both. When such borderlands are troubled, people are easily persuaded to retreat into their identities, seeing all others through narrow windows of hostility—as when Yugoslavia tore itself apart in the 1990s.
But in peaceful times, the borderlands are strong. Their people can navigate complex, nested identities that are ethnic, national—and European.
Mr Czyzewski calls himself a bridge-builder. His work is to bring people back together. Not for him the ossified culture of nation-states and the doomed, top-down schemes to create Europeans that fit the remit of Brussels. Other Europes are possible. He believes that people need an Agora, a common space where differences can coexist—a place of peaceful borders peacefully crossed, be it central, like Colmar, or liminal, like Krasnogruda.
Security and the slow accretion of confidence can help people move past nationalism to embrace a new European landscape of regions, cultures and cities. This is the Europe that is to be found in Colmar and CERN; in the student bars of universities—even, perhaps particularly, if the students from Germany and Greece mock and goad each other there; in old battlefields as well stocked with holiday homes as with past glory and in the football stadiums where Europe’s great clubs vie for the cup.
After more than 60 years of integration, nation-states persist, stubborn and seemingly immovable. They will not go away. But at its best, in its lasting peace, Europe reveals something between and beyond them. If the EU is to thrive, its supporters must have it take on something of the patchwork vision Mr Czyzewski lays out among the lakes and forests. Like him and Mr Klein, they must start to understand that the ethnic mosaic of the borderlands is the most European identity of all.





Were central banks partly responsible for 2008 Globsl Crisis - Financial Times

Before the crisis of 2007-08, the general public rarely considered central banks and that was the way central bankers liked it. The less they were in the headlines, the better: if the global economy was working well enough to be considered boring, they were doing their job.
Then the banking system collapsed and the central banks had to come out of the shadows. Never were the words of central bankers such as Ben Bernanke and Mervyn King more eagerly scanned. They became financial physicians, applying quantitative easing here, cash injections there and radical surgery for the parts that couldn’t be saved.
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Afterwards, reflection set in. The central banks had clearly played a major role in resolving the crisis — but had they also been responsible for causing it? Was their medicine effective or did it produce unforeseen side-effects? Are they really independent or have politicians and vested interests captured them? These are some of the questions addressed in three new books.
Their focus is the US Federal Reserve, the closest thing we have to a global central bank, and its older but smaller cousin, the Bank of England. President Woodrow Wilson signed the Fed into law in 1913, after the intervention of financier J Pierpont Morgan to restore confidence during the panic of 1907 highlighted the need for a more formal method of controlling the US banking system. The Bank of England was also formed out of adversity by a government in 1694 that needed urgently to raise funds to finance a war with France.
Their powers have waxed and waned but in the years since the crisis, sometimes in conjunction with other arms of government, they have had three core functions. They are the lenders of last resort to banks in trouble; they serve as banking regulators; and they act as their governments’ economic agents. The latter is achieved by controlling the money supply and setting interest rates, and the efficacy of this methodology is the common ground between the two trenchant critiques and one neutral account reviewed here.
The Fed’s global pre-eminence is based on the size of the US economy, which makes its presidential-appointed and congressional-vetted chair central banking’s global superstar. Excepting the incumbent Janet Yellen, the three dominant chairs of modern times are Paul Volcker (1979-87), Alan Greenspan (1987-2006) and Ben Bernanke (2006-2014).
Volcker took office at the time of “the Great Inflation”, after a period in which the Fed had unsuccessfully tried to tackle out-of-control price rises through interest rates. Influenced by the work of the monetarist economist Milton Friedman, Volcker switched tack by targeting the amount of money in the system and letting the market set interest rates in response. If money was scarce, the price that borrowers would have to pay would rise. It was brutal medicine, costing millions of jobs and causing interest rates to soar but it did bring inflation under control and perceptions of the Fed’s independence gave Ronald Reagan, president during many of these years, air cover from any collateral damage.

Volcker’s successor, Alan Greenspan, achieved iconic status as the central bank’s overlord. He was feted in the US and abroad, and in 2002 was given an honorary knighthood for his “contribution to global economic stability”. The basis for this was the low inflation and steady growth of the Greenspan years and the markets’ belief that, at times of disruption, the Fed would always come to the rescue with easy money or discrete pressure on private banks to help ailing institutions. This safety net became known as the “Greenspan Put”. Greenspan just had time to bring out a book explaining the secrets of his success before it all unravelled.
The task of resolving the crisis fell to his successor Ben Bernanke. The situation was desperate and Bernanke’s Fed used the authority granted it in Section 13(3) of the Federal Reserve Act to bail out banks “in unusual and exigent circumstances”. The subsequent exercise of economic power was virtually unprecedented in the US outside of wartime.
Peter Conti-Brown, an assistant professor of legal studies and business ethics at the Wharton School, writes the measured account from which the preceding historical analysis is partly drawn. The Power and Independence of the Federal Reservedescribes the Fed’s journey from its early 20th-century role “as a banker’s bank and lender of last resort, to the god of the boom-time economy” in Greenspan’s time “and back again” after the crisis of 2007-08 to the “functions [that] defined the Federal Reserve System at its inception”, including regulation and supervision. He explains clearly how complex relationships shape the Fed’s independence in a meticulous study of its political, economic and constitutional history.
There are no villains in his account. “Central bankers at the Fed aren’t throwing darts at a decision tree, nor is there any evidence of venality and corruption,” he writes. Instead, the Fed adjudicates impartially between conflicting views, seeking to reconcile imperfect data and always shaped by the shifting blend of personalities and ideologies on its governing board. While that particular conclusion might be hard for the conspiracy theorists to swallow, it is hard to disagree with the author’s overarching premise that reforming the Fed’s “complicated, confused and opaque” governance would improve transparency, restore accountability and reduce the risk of groupthink.

He says that his “book is for those readers who are eager not for single sentences, but for the quieter and necessarily lengthier discussion” and that he is “comfortable losing the fringe conspiracists”. He has achieved both objectives, though perhaps at the expense of enticing the general reader. If you are a serious student of central banking or heading for an interview at the Bank of England or the Fed, this is the book for you; if you are interested in the subject but prefer something more accessible, try the other books on this list.
These include Fed Power: How Finance Wins, a welcome demonstration that grounded academic work can be entertaining as well as informative. Lawrence Jacobs and Desmond King, political scientists from the universities of Minnesota and Oxford respectively, live up to their claim to “jettison the all-too-common hermetic language of academia in favor of candor

Their interpretation of the Fed’s role goes beyond that of independent adjudicator into a more sinister form of regulatory capture, in which well-heeled lobbyists influence Fed officials for their own ends. Neither is the Fed a disinterested actor, for it has objectives of its own “to sustain its flow of resources to function and to reward the private banks in its system”. It achieved the latter by delivering “substantial advantages to one industry and a few privileged firms”.
Theirs is the more persuasive explanation but there is no smoking gun. The evidence of a deliberate attempt by the Fed to elevate the interests of big finance above the rest of the economy is circumstantial. Though the crisis was resolved in a way that favoured certain financial institutions, there are no revealing emails or memoranda that betray any kind of motive other than supporting the public interest as the Fed defined it.
The authors know the Fed inside out but they are on less sure ground when they contrast its performance with that of other central banks. The Bank of England is praised for requiring the banks it bailed out to support homeowners and small businesses, whereas the Fed rescued the US financial institutions unconditionally. But the US bounced out of recession more convincingly than the UK, raising questions about the effectiveness of the Bank of England’s intervention. Perhaps the Fed wasn’t so dumb after all.
The Bank of Canada’s tight grip on the Canadian banks ahead of the crisis is nicely contrasted with the Fed’s approach. It worked very well but a more detailed discussion of how that could have been applied to the larger US banking system would have been welcome. However, these peripheral criticisms should not detract from a book that is engaging throughout and generally persuasive in its principal thesis that the Fed is a politically loaded institution that drives rising inequality.
Finally, Anjum Hoda brings a practitioner’s insights and biases to the subject. She is a former portfolio manager, derivatives trader and strategist who is currently running a capital advisory business. She has an intricate knowledge of how money markets work and uses this to good effect in Bluff: The Game Central Banks Play and How It Leads to Crisis.


Her core belief is that the central banks’ use of interest rates to control the economy is ineffective and directly caused the crisis. The bluff is that by “lowering interest rates they can propel the public into economic activity that leads to greater prosperity characterized by more jobs and wages”. In fact, the updraught is felt primarily in capital asset prices: “Low interest rates, impending inflation and reasonable levels of current consumption stop people from realizing these apparent wealth gains and spending money proportionately on consumer goods and services.”
Thus the interest rate policy helped asset owners but did nothing for the have-nots and increased market volatility by mispricing risk. When, as occurred in the subprime mortgage crisis, interest payments were interrupted, the whole edifice cracked. This was the inevitable consequence of the misconceived Greenspan Put and, while she is not the first person to identify the flaw, it has rarely been more clearly explained. Even the most serious-minded readers will find the story enlivened by the likes of Mary Poppins, Kung Fu Panda and some amusing analogies.
Where the book falls down is in its overgenerous treatment of the industries with which the author is involved. According to Hoda it was the central banks, not the private banks, that bear primary responsibility for the crisis. She largely absolves commercial banks and investors, believing that they were mere infantrymen marching to the central banks’ low interest rate drumbeat. It is a very sympathetic interpretation. The front-line banks were volunteers rather than conscripts and could have exercised their own judgment to march out of time, as some indeed did.
Her analysis of the investment banks is benign to the point of absurdity. The long list of fines and restitutions they were later forced to pay show that they made their money in far more nefarious ways than she describes, and it is stretching credibility to regard them as innocent beneficiaries.
Nonetheless, if these particular judgments are suspect, understanding the central banks’ role in causing as well as resolving the crisis is still an important step in ensuring that in future they stay out of the headlines. For that we would all be grateful.