elucidation

Der Spiegel’s English language site has an interesting brief (that I could relate to) on the challenge faced by media outlets in finding fresh visual metaphors to illustrate the economic crisis in the eurozone. The standard seems to be subjecting the banners and mascots of statehood and national identity to various forms of torture and peril and most definitely showing euro coins in all denominations defaced and distressed.

Some subjects and themes, as determined by mood, rumour and the forecast, are highly popular. There are certainly a lot of creative and emboldened dioramas out there that demonstrate photographic ingenuity and that sometimes verge on silliness and hyperbole and sometimes a bit mean-spirited. I especially feel sorry for the poor stunt-money that’s afforded no respect.

statecraft

While I do not believe that German resistance to relaxing reform-measures or pooling debt was anything less than genuine and negotiations were not weighted by some calculated double-bluff, governments and eurocrats gained a way forward without and reached a deal precisely by being uncompromising. Merkel is a talented and clever individual, and I bet once the summit was over and everyone could relax their game-faces, she thought “wait a minute, did you see what I just did there?” Germany entered the conference firm on the position of not altering the stability and rescue mechanisms of the Fiskalpakt.

Eventually, however, Merkel conceded to allow troubled banks direct access to the funds (as Italy and Spain wanted), bypassing the rule that sovereign governments should only have these drawing-rights, which could be used, if they saw fit, to provide their banks with capital. With this allowance, however, Germany mandated the creation of an office to oversee the deportment of beneficiary financial institutions. This stipulation in turn addressed a point of inflexibility on the part of France. Without agreeing explicitly to a solidarity that is domestically unpopular, France expressed a willingness to not surrender national sovereignty to an EU governing board but rather the management of its banks. The agency charged with monitoring the banks is not based alongside the institutions in Brussels, Luxembourg or Strasbourg but rather incorporated into the EU’s Central Banking Authority, located in Frankfurt.

teufels kreis

Among the many woes and aspects bemoaned about our very global economy—and a worry not countermanded by some other positive element but unilaterally punishing—is the potential that no matter how carefully planned, sacrifice and contingencies made flexible and more than yielding, the weakness or strength, decisions or sentiment touching any other markets could undo all the hard work, arrangements and negotiations and exacerbate problems by posing even bigger set-backs. Eurocrats and eurozone functionaries are gathered together for another installment of talks to issue a way forward, which is of course not just a dodgy doddering through, and a road map is something, although a path fraught with obstacles. Approaching a meeting with only the aim of maintaining a system at all costs rather that with convictions and principles only results in empty compromise, escalation and the true vicious circle (Teufels Kreis)—throwing money at problems and amounts to same good as not discussing or ignoring a problem as a surrogate solution. The diplomacy of map-making, no matter how the landmarks may be shifted or toppled by macroeconomic factors or caprice, are still indelible features to be navigated.

injunction

Hearing speculation about the polls in Greece ahead of the Sunday evening elections, a dead-heat and a photo-finish most held, I was worried that the EU would have its Bush v. Gore moment. That time was more than a moment, rather an epoch that spanned from days after the disputed election in November 2000 until at least January 2009, and it is yet to determined if it’s really over. The party styled the fiscal conservatives have a slight edge over the liberals, and the victors are positioned to build a coalition among the among parliamentarians from minority parties, committed to retaining the common-currency and remediating the Greek economy by adhering to the conditions and reforms of economic assistance package.

The winning party, however, has no mandate from the people and no basis to strengthen its claim that enduring all the punishment won’t just be in vain but also beneficial. The liberals were no understudy to chaos, and while their round rejection of the austerity and targets twain to keeping the euro in favour of social justice and support has sensible and popular appeal, they are not presently able to offer plans on what the inheritors of the new drachma should do the next morning. Voters’ appeal could still turn and the choices as portrayed do not seem to offer healthy alternatives. It seems that a lot of oaths and deeds have already been sunk and are sinking and buoyed on the not on hopes or politics nor even on the mechanics of peace and prosperity, but the neediness of advanced economies desperate for attention. Greed, I guess, steals away too the care and concern touching on bigger questions and difficulties and holds decision in suspense.

panhandlers and paupers

I am not quite sure what to call the growing and morbid fascination with ruin and distress on exhibition, and thankfully no one has tried to apply the label of poverty porn universally because there are significant differences in degree and dialogue. Of course, things can slide into neglect and disrepair quickly and destitution can be an equalizing force, but it does not do to compare the Sword of Damocles hanging over Greece and Europe with the Rustbelt of the United States and explicit profiles of crumbling and de-peopled urban centres. Detroit is a pinup girl.

The so-called poster children of the eurozone, however, are not positioned to relinquish hope, sovereignty, identity or anything else and will continue to engage the union and their people in setting this framework.

The euro is not in danger because of debate or controls more stringent and exacting than were originally agreed to (though perhaps not abided by) but is rather reinforced by vocal and public investigation and scrutiny. Trying to force American-style solutions of throwing money at problems, hollowing out social support programs and allowing the banks and markets to dictate to government and the real economy is obliviously a threat, even though the crisis stems from a uniquely American export, greatly exacerbated by American-style over-exuberance and over-exposure. Budgets and expenditures, though crises can be enlightening for systemic problems, could have continued at a parallel pace if it was not for one costly mistake, and with attention and care can be realigned and made stronger. The peep-show comes in the form of rallies, strikes and street protests and threats to monuments, artefacts and infrastructure rather than the abject desolation, that many like to ogle over but that’s apparently all talked-out.

achterbahn

Lending tacit support to the infusion of credit to Spanish banks by way of a demurring and quiet concession towards the pooling of debt, Germany bore some chinks in its armour of resistance to the notion of sharing responsibility for broader financial stability. Signaling (again so lightly as to miss this cue) that the machinery of the European Union might be willing to admit a bit of the chaos of democracy (wherein people might not be obliged to choose wisely), Germany advocated a stronger political union for governance of monetary issues, ceding control of budgetary competence to the EU board.

Necessarily such a decision could not be unilateral and only up to the will of EU functionaries but must be submitted to a vote, since radical changes in national sovereignty require amending individual constitutions and a new legal framework. Now, even as the soothing effects of the cash for Spain is evaporating and raising the ire of the public and other earlier aid recipients that are being made to feel categorically different, irresponsible and blameworthy, which I do not think was the reason behind the German compromise but rather fear that became face-saving for Spain’s banks, Germany has shown a willingness to entertain the democratic process before the voting public has wearied of the issue and the ideals behind the EU are sunk. Instead of inheriting a failed coalition, Germany hopes to install a carefully crafted framework that honours Teutonic stoicism and fiscal responsiveness. Agreeing to share the burden of new debt incurred (and no country in the soi-disant core of the EU can manage right now without taking on new debt) comes also at the exclusion of existing obligations, which I fear might make the union, after negotiations that delimit one’s jurisdiction, even harder to leave, should things take a turn for the worse.

florian-geyer-steuer

Despite polls showing majority public support for the matter were it put to a referendum, the Berlin plan for the European Union fiscal compact has been struck down again, primarily due to internal strife and international rejection of a financial transaction tax levied on stock trades. Using current market activity, some seventy billion euro annually could be skimmed off the top and shore up emergency funds. Opponents argue that such projections are unrealistic, since without region-wide or even world-wide buy-in, adoption of the tax, places with the tax regime would become islands, cordoned off from the rest of the financial sphere, which becomes in turn more lucrative for not having to worry about this tithe-ling—something very nominal, from a tenth to a hundredth of a percent of the value of the transaction.

Like the Tobin Tax on currency exchange, it would also reduce speculation and short-selling. At the same time, France has announced that it will introduce its own domestic transaction tax, regardless of what the rest of the world does, and given this weak contrary argument, I wonder how big that sphere of participants has to expand, according to the brokers and the bankers, to the make the field level, globally or within the euro-zone only. I am against austerity measures because in general they have been a poorly managed sacrifice (Aufopferung), uneven and without edification, but to corner the market and demand this tribute on any level is not only staving off the inevitable but also perhaps reducing the need to enact those tougher elements of the compact, including member states ceding control of their budgets and social programmes. A toll charge, easily and automatically born, that pushes some responsibility onto the banking houses that enabled this crisis is a better solution, despite any insincere fears of a temporary traders’ egress (to some other haven off-shore), than the lingering deflection of propaganda and stereotype, aggrandizing the status quo, which drains the possibility for real recovery and reform.

persona

There was a medley of developments in Germany today—again touching on individual sovereignty under fiscal solidarity, although at the end of the day, I suppose anyone should want to be part of a like-minded empire rather than in thrall to business and banking interests, and the reinvigourated failure of moving forward on a financial transaction tariff, however, deftly, I think it was the decoy story that let the others pass, virtually unnoticed:

nothing new, really, but quite relevant and publically digestable was the revelation that the chief German private consumer credit reporting agency (the equivalent of the triune of terror in the States of Equifax, Experion and TransUnion) and a university sociology department are researching the effectiveness of the internet and social networking sites in gauging the creditworthiness (Bonität) of potential clients. The team was a little red-faced about being exposed and assured reporters that the exercise was purely academic and on the up-and-up. I would not think that this sort of behaviour, while unpalatable in the extreme, was so very shocking. Already in American, it seems like fishing and harassment on-line is standard procedure for bill-collectors and underwriters. Just as employers might judge a candidate by his or her avatar and easily-accessible reputation (everyone’s a detective), I would guess that a bank or its minions might do the same thing before extending a line of credit to a stranger. An individual’s life on-line is certainly never complete and probably a caricature of his or her hopes, aspirations, maturity and responsibility, and there should not be an expectation of anything otherwise. Protection against this sort of prying is important but also, I think, tempting bait for the public’s and government’s attention, detracting from bigger and enforceable issues. I also found it funny that for all its covert research, the agency was not able to form an accurate picture of the performance of the same social-networking platform on the open market, which just shows what people will latch on to.

börsianer börsiana

The experimental nature and political integration that characterize the euro and the European Union I think may be draw unfair attention, as something perceived as more novel and catastrophic than it really is. Japanese public debt stands at some 230% of its gross domestic product (Bruttoinlandsprodukt), placing Greece squarely in the middle with 152% to America’s 99.5% reported debt that’s just at the break-even mark. Japan even managed to reach these heights outside of the strictures of a monetary or trade union and was free to fine-tune its economy and despite a robust manufacturing sector.

Most of the industrialized states in Western Europe hover around eighty percent. Some can abide and that’s a clever little measure that puts us all in our places all a great spectrum of investment and returns but of course that too is imperfect, not capturing intangibles and not taking into account circumstance like needs and means. Much impatience and frustration (right or wrong) is being visited on Germany for action, and Germany probably will in the end, before the capital and patience of the public evaporates, make a move that inspires a strange, predatory sort of confidence—a more direct endorsement, seemingly, than the mechanisms of bureaucracy. Such heroic cooperation, however, begs the question whether member states are agreeing to whatever bundle of rules and accords out of solidarity and desire to reform, regroup or just in a bid to get enough support to continue the same game. Germany certainly would not want to see all the avatar currencies returned, making a situation where the once-and-future Deutsch Mark is considerably more valuable than a splintered euro. Is such reasoning for this experimentation and not political unity the driving-factor behind a broader movement of aid and assistance?

ex ante or porto portugal you are permanently punished

This week’s vote in Ireland whether to accept or reject the conditions of the European Union Fiscal Compact, a treaty meant to promote financial stability and responsibility through punitive measures and supranational controls, was a stirring of an issue that goes dormant as member states shuttle in queue and declare what they expect their prerogatives to be.

All countries, with the exception of the UK and the Czech Republic, have now assented and one can expect the process to lurch quietly towards enforcement next year. Ireland, uniquely contrary and potentially ruinous, had a pivotal decision, not so much for deigning to participate, but for letting the voters of Ireland make that mandate—being the only EU member to put the Fiscal Compact up to a plebiscite. Public engagement results in education and a better understanding of the expectations and consequences. The Irish constitution has to now be amended in order to conform to the terms of the compact, which demands that signatories stay just under budget or face fines and surrender trade and tariff matters to the EU government. States still retain control over tax regimes and public projects but it is a legitimate question how meaningful that exercise of prerogative and priorities are still when tethered within the latitude of treaty rules and whether the conditions of this pact are going beyond the reserved rights of individual sovereignty as put out in the language of the Lisbon Treaty (Vertrag von Lissabon). Rejection would mean that Ireland or any other dissenter would be ineligible to receive emergency aid and rescue funds. The EU has the bully pulpit, along with the deportment of its top performers, but also has a sloshing budget of billions with only nominal and ethereal accountability and negatively reinforced, and it seems to me that this poses more of a danger than a deterrent, like keeping a standing army in times of peace.

pyrrhic victory or yes, we have no bleeding turnips

“Another such victory and I am undone.”

The ethos of the battlefield has, for the most part, been relegated to the invisible and agnostic sphere of finance, which has created an aversion to bloodshed and protracted war-making, since that is not a good climate for business—most business, likely there’s a calculus for acceptable loss and trigger for cutting-off the profits for the infernal machines, but it also tends to overshadow the “retrograde” and black market skirmishes that still go on and the people who take part in these sorties and surprises. The majority of what passes as an economic victory (although industry innovation and what’s now called a come-back or revival, like with Ireland or Iceland and what will happen for the Greek people, is not being entertained with this category of robber-baron success) is little cause for celebration (DE/EN), priced in terms of bankruptcy for the competition, the bleeding dry of stake-holders (shareholders and debtors), loss of jobs and living-standards, and trend-setting easily overturned that’s mere redistribution among the oligarchs. What are deemed key institutions are even sustained after being vanquished at the expense of public treasure. Those who would like to see struggling members of the European currency union quickly dispatched and dismissed unwillingly, rather than risk a sort of economic cold war, are rushing away from triumph. The EU’s proponents and founders could not have anticipated the spread of the economic collapse and that such a crisis would force a sober discussion of policy (how taxation and budgets are drafted) integration and is not using the plight of some members to justify the hegemony of others—rather this experiment in amalgamation, an imperfect union, shows how diminished the whole would be without its constituent parts and that the abridgement of differences is no basis for abandonment or ejection. Though the belligerents of politics and finance are intertwined, there’s principle enough, I hope, within the governments (at the behest of the people and not business or self-interest alone) to make the right decisions and have cause to celebrate.

chinese fire-drill

Cornered with prospects of more market bubbles (a dot-com bust redux of 1999 and 2008 after a less than stellar performance of a networking platform that’s only, but, not merely, the sum of its user-generated antics), aspersions are quick to be cast out, like so many throwing-stars and there are the usual targets, scapegoats.

Revelations that, after several years of negotiations, the Chinese central bank has been afforded direct access to the Federal Reserve’s treasuries auctions without having to go through a middle man, a Wall Street bank, to complete the transaction—bidding on, buying US debt, have raised headline indignation. While it is a fact that no other bank, domestic or foreign reserve bank, has this special privilege and everyone else must use a Wall Street intermediary and that does raise some suspicion in itself (especially in light of another revelation involving military contracts and knock-off computing components), it does seem like a false-flag diversion to first question why buying up American liabilities is facilitated for China and deflates the underlying premises: even the transactions between the Federal Reserve and government agencies are brokered by major investment banks, charging a commission, and perhaps other institutions ought to wonder about the special privilege that these select middlemen have. Are the bankers of Wall Street less than trustworthy? Should the US manufacturing Would more public disclosure of any country’s debt-buying activities (mediated through a bank) cue market volatility or keep prices low for the bidding pool of a closed-auction? Should such a pyramid-scheme be any country’s or institution’s primary means of staying afloat, no matter what nation is buying? Looking for engineered snares and backdoors, regardless of who’s the trigger and who’s the trapper, and cyber-warfare is healthy and circumspect paranoia, but overshadows more basic questions that should be asked of America’s penchant for off-shoring—its defense and its public obligations.

jubilee or augean stables

Setting a bad example is sometimes just a pedantic argument. Negative encouragement, I think, is probably not worse than market-contagion.

Wouldn’t it have been easier, foregoing a lot of pantomime and drama, and less costly in terms of make-believe wealth and real livelihoods to have simply forgiven Greek sovereign-debt plus given the country some seed-money to start over and written the expense off as sunk-costs? To force out any member of the Euro Zone against their will is counter to the spirit of integration that the EU represents, but also is the insistence on inclusion, when it comes with too high a tribute, with a list of impossible sacrifices and challenges that read in short-form like the Twelve Labours of Hercules. Just as Greece (and now the outgoing French government, who are sure to be in good company) have been accused of underestimating their financial standing and potential severity of the problems, rankling turmoil could have been staunched and discounted by now, instead of dragging out the whole affair. Integration also means the acceptance of common-losses, and though the solution, after the can has been kicked down the road for quite a piece and the problems have swelled, will be universally disliked, they can still be absorbed by the economy of the union. Lenders and debtors conspired to exacerbate these conditions until they came undeniably into our range of vision. Off-putting the developing urgency of some markets makes for an unflattering reflection of our own delay-tactics and the messy regrets over not quashing a trend while it was still emergent and manageable.

serfdom or golden thread

The purported tax-avoidance scheme of one internet entrepreneur has once again set the brain-trust of the United States of America into over-drive and grand-standing with a retaliatory plan to glean taxes from individuals who choose expatriation. Already the US is a soured thug in terms of tax treaties, demanding its cut from citizens worldwide, regardless of their place of residence and regardless of whether the targeted income was earned with the help from the homeland, made travel a distasteful affair beyond even beyond its borders, place the burden of reporting on foreign banks so as to make them wary about dealing with Americans abroad.

The proposed law would seek to repatriate tax revenues, impose withholdings and an exit-fee—in addition to barring these individuals from returning to the States. Plenty to do at the Hotel California. I am sure that this bill, should it come to pass and much worse is being done, will not affect cosmopolitan billionaires (the timing of this whole casus belli seems pretty tacky but it is unclear whether the media or the government is rightly understanding the motives and no individual ought to have to defend his or her reasons, especially political ones, for making such a choice), those brazenly berthing their fortunes off-shore or corporations that hide behind a string of nationalities, but for the average citizen, it demands that he or she would face undue hardships should they choose to immigrate. America’s bastions are not only uninviting to immigration, the gate-guards are saying that one cannot leave either. It sounds suspiciously like the policies of Soviet Russia whose restrictions on movement presented many with the difficult decision to remain or flee forever. Despite the reactionary nature of this proposal, I wonder if there was ever much difference between the two super-powers—especially within the self-styled framework of a monopolar world.

golden parachute

Why is it that financial institutions seem to be the last ones to suffer and made to accept the blame in moments of crisis? Of course, numerous banks are being battered by outside appraisers, but that affects the clients that have graciously allowed the banks to hold their money—or not just hold it, in many cases, but rather do something risky and maybe a bit evil, subversive with it too—but restructured or commandeered, the money-managers are not allowed to lose, while credit, savings and mortgages for the public flitter away or are leveraged with insurmountable interest rates to guard against instability.

Of course, these imbalances are compounded in business and government as well, in the forms of lost capital, revenue and social-services. If any other utility—and again that’s all that any bank is, like the electric company or Reading Railroad—business enterprise or government failed as consistently and unapologetically to deliver, they would be rightfully remediated or dismissed.

The same financial institutions that are bringing the euro to the brink, like giant babies in some blameless but willfully destructive playpen, are admitting to nothing, nor being held with any responsibility by their host governments that created the framework for them to raise amazing wealth. I don’t think there is any extraordinary conspiracy behind the governments of the European Union trying to cobble together a fragile fiscal pact four years after certain inevitabilities became apparent (other than the anodyne corruption of politics and wealth). 

Delay and unchecked speculation, however, has only afforded the chance for bankers—not the cleverest or most creative lot—to huddle in their war-rooms and quietly, only eking out panic in controlled doses—prepare to re-tabulate the score, drafting the new financial order while economic ministers obliged with a believable cover, again deflecting blame and becoming the saving champions of the markets.

dramaturgy

There has been an awful back-draft lashing European politics and markets, sparked by the exercise of public prerogatives that seemingly did not follow the right plan.

All this angst and run-away conclusions are more than a little bit off-putting, since by demonstrating and maintaining a plurality within the framework of one currency, no borders—and even the framework itself might not be the essential part, worth preserving at the expense of its constituents—people, the public, politicians and the press (as opposed to dogmatists, demagogues and the media who are practiced dramaturges, re-characterizing the whole affair and dictating how people ought to think, wither and tremble) are talking above the general din about policy compatibilities and tenable directions. I think the counter argument that the pot has no right to criticize the kettle until it solves its own issues can be abused and is a childish way for preempting a discussion: the EU did not appreciate the irony of America’s economic chiding, coming in a variety of forms.

Nothing was ventured, as a result, about the structural differences, maintaining a plurality in both super-states but one noticeably without mechanisms for intervention. The US Federal government is not telling the States, like Texas, that do not levy an individual income tax on its residents to do so or accuse some localities of providing too many incentives. Maybe, however, it will come to that and we still maybe unwilling to learn from one another, since economic problems can always be masked behind a glossier façade of potential for profit and assigning blame is easier than accepting change. A crisis is always driven by under-estimates (willful or unintentional) that cannot hope to keep enthusiasm in check.

a town called bad karma or unicorn chaser

Reflecting on Victory in Europe Day, the instruments of surrender signed and witnessed late in the night of the 8th of May and hence Victory Day in Russia and Eastern Europe due to the time difference, and the commemoration of the formation of the predecessor to the European Union that followed barely a scant decade later, is a bit diminished for being subjected to the current filters of disloyalty and disunion.

Forging a united Europe should not be without flexibility and forgiveness, nor at the expense of individual dignities. The conception was not perfect and neither are the realities and incom-patibilities of day-to-day operations, but I thought that we were moving beyond that frame of mind, no more entrapment and petty skirmishes and no more convenient amnesia. To compare the manufactured crises of economics to the untold tragedies of war is petty and cause for offence, but—though politics and popular sentiment can be moved greatly by either upheaval—despite anger and irreversible damage done in the war, the victors did not retaliate. Though defeated Germany could have been broken utterly and completely by demands for reparations (like after the First War—which albeit, did not turn out so well; I sometimes call our fair village by that name, not because its not a nice place but since it has an exceedingly common name and earned the stand-out designation of Bad [Spa, stand-out among its similarly named peers, that is] only just after it was one of the first towns to acknowledge and congratulate Adolf Hitler on his coup d’etat, Machtergreifung), its people were allowed to rebuild and recover.

Germany certainly has done many great things to recuperate and to contribute to peaceable formation of the European Union but has not done so without outside support and a stable substrate. This contrary and exclusive thinking that sees no growing imbalance in Europe’s social priorities is not a very appropriate way to regard the day, and it reminds me of the forgetfulness of some of the better-off of America’s campaigners (followed by a loyal base of supporters) who’d now begrudge a nation and a system that created the environment that fostered and protected their success its dues. A little gratitude can urge anyone towards improvement.  Please now allow the Eurocorn to chase away the negativity in this dark post.

kαταναλωτισμός or conspicuous consumption

While it is premature and insulting to suggest that Greece, failing to form a definitive coalition government after its legislative elections that were themselves held in the framework of a caretaker government ingratiated as a condition of the first bailout package, will flagrantly choose to not uphold its obligations—attracting no clear majority though like-mindedness abounds—it does beg the question at what cost default. Greece is already in hock for the better part of a generation just keeping current on payments to service its rescue packages, with acutely less to show for it in the end: the dictates of creditors and angel-investors are superseding public services and the cultivation of a jobs market. Prophets of doom are probably not exaggerating when the say that Greece will suffer an extended period of massive poverty if they are forced to default (there is not much choice left in the matter) and quit the euro, but such consequences are temporary, surely less than the terms of the loan, and the Greeks could begin clawing their way back right away. Such a precedent, though, would be dread to see, dread to hear for other countries on the economic ledge and the minders of the EU—a cue for Spain, Ireland, Iceland, Portugal, Belgium and Italy, another nation imposed with a caretaker government, to consider doing the same.

I venture that the biggest fear behind the potential for contagion and strict monitoring of Greek conduct lies in not the potential for poverty but rather that it is a renegade category of poverty. Consumption continues at a pace, regardless of financial standing, so long as there is credit and interminable refinancing. Trade partners can still sell their exports and settle payments with a common currency in understood and agreeable terms, but once those conditions disappear and a country is unable to afford imports, established trade routes break down and there’s a turning inward and countries become more self-sufficient, relying on native products and developing local manufacturing (even if not as immediately efficient and technically advanced), perhaps even getting accustomed to getting by with less. Stronger economies would not be sustained without broader markets for the export of their expertise, and their sterling credit.

gerrymander or mayor mccheese

Perhaps the recent media disclosure that in fact Americans respect their own ideal of German prowess, engineering and discipline (irrespective of what kind of magical or wishful thinking that is) is more like the kiss of death—hitching the tenor and fatalism of American politics to how Germany and the current government carry on to handle an undulating, interest waxing and waning, crisis in the economic sector married to more profound and long-term questions of European identity, peace and cooperation.

The polygamist US is strange in courting another marriage of convenience with a partner that’s very coy and mutable: Germany either, as the hinge for the US election, represents deft leadership and resolve or Germany is the Bürgermeister of Euro-Town, the focus of the Red Scare rhetoric that was an early theme in the campaign—that European style governance was not working in Europe and certainly would not work in the States, and strident scolding from the President and monetary policy-setters about how Germany needed to act, not to mention the volleys from the credit rating agencies were landing on all sides. It’s like as if one was playing Battleship and the grid is all red-hits except for a Germany-shaped cut-out. I don’t think Germany wants the responsibility (in the rarified air of the democratic process) of king-maker or empire-wrecker, nor agrees to the dire hysterics of the moment, whether regarded through American eyes as a bulwark of self-control or as a Welfare Queen. Such is the statecraft of blame and deflection. Despite frustration and desperation, no one, from Germany and France, whose smugness may be a media construct, to Greece, Ireland, Spain, Italy, Portugal and the rest have given up on their native talents and resources. Yanked on stage and ordered to dance, one would think that global financial maneuvering was old-hat for some of the designated trouble-economies. Borders have been re-drawn, crossing-wires or supplanting the signs of the Zodiac with one’s own corporate constellations. Certainly any of these countries have the sophistication, wherewithal and frame to play and win besides, this is not the top draw in Europe. There is also not the delineation of the Free and Imperial City of Detroit, the Principality of California or the Most Serene Republic of the Mississippi for market comparison. Inflated and artificial divisions press the attention of the public to this side show and away from the native resources that America sorely lacks. Instead of trying to affect a cultural and productive remedy, US political antagonists are yoking their prospects to a very cosmopolitan cause that is not Europe’s first priority.

three-letter initialism

Though the US Internal Revenue Service is in fact a federal agency and not a largely autonomous entity like the Federal Reserve Banking system, deriving authority from its expanded charges but accountable to no one, America I think is poised to endow this other creation, the IRS, with similar dreadful powers. I suspect (and hope) that the intent is not as scary and grasping as some are making it out to be, but like other familiars of industrial and puritanical helpfulness that have grown out of bounds and terrorize the public much more than the unseen forces that they claim to combat (the TSA, FBI, DEA, FDA, EPA, CIA, NSA, DHS—and the DOT, the FED and IRS). Buried within a broader transportation bill to ensure continued funding for the US interstate highway system, rappelling its way through the US Congress, there is a clause (open of course to broad interpretation) that grants authorities the power to revoke one’s passport should the bearer be found delinquent (these two words cover an entire spectrum of meaning) on tax obligations.

 In theory, under this unholy alliance, a border patrol officer could bar an individual owing $50 000 in back taxes from leaving the US but I suppose that there is a large potential for such powers to uncoil and become much broader and more restrictive in terms of freedom of movement. This is the same mentality that has unleashed scads unending of rarified dollars on the world markets and driving inflation, or that has created a tax-regime that put such an administrative obligation on foreign banks (to do the jobs the IRS couldn’t manage itself) that doing business with Americans is becoming a liability, not remorsefully unburdened. What of the some 30 000 US soldiers or 98 000 government employees, many of whom are working overseas, that owe taxes? Is movement stopped for them as well? I imagine that enforcement would have to be equitable and without exemption, so no individual would feel targeted and singled-out because of his or her views. Everyone benefits in some way from the services, security or stability that government provides through tax revenue and again no one can simply shirk their duty, but (again) if America was earnest about taking in what’s owed them, they would go after businesses and corporations who’ve profited the most off of the market environment that the US has created and not devise a new mechanism to rustle the pockets of private citizens for diminishing returns. One further hopes that the helix of the secretive no-fly list or the battlefield Earth judgments of the National Defense Authorization Act (DE/EN) does not join up with the one of this collection-service, since then we would all be put in the dark.