Tag Archives: Handelsblatt

DOMESTIC TURMOIL

It’s getting personal!

Our grandchildren have a weakness for Cadbury’s chocolate fingers.   Not wanting them to develop any addictions, they have only been an occasional treat.

A few months ago, I bought them for less than $3.   When I looked for them again a few days ago, they had gone up to $6.75.

The only reason I can think of to explain that jump is an increased tariff on imported chocolate (they are produced in the United Kingdom).   The dispute is between the US and the EU, of which the UK remains a member for another seven months. Hopefully, after Brexit the price will come down.

Yesterday, I checked at WalMart, where I got them for less than $3 earlier this year.   They are no longer selling them.   They have also stopped selling Tim Tams from Australia.

Armageddon must be close – that’s all I can say!

Request: if anybody lives in the Cincinnati area, could they please check availability and price next time they visit Jungle Jim’s?

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207 DAYS LEFT UNTIL BREXIT

Talking of Brexit (and food), you would think the British didn’t eat before they joined the European Union.

Those opposed to leaving the 27-nation EU are attempting to scare the general population, saying that there will be food shortages and their prescriptions may no longer be available.

For the record, the United Kingdom was the world’s most successful trading nation in Victorian times.   They continued as a major trader right up until they entered the EU in 1973.

Prior to that ill-informed decision, major trading partners included the Commonwealth (former British territories), the United States and EFTA (European countries that were not a part of the EU).   Food was a lot cheaper than it is now.   The UK, Australia, Canada, New Zealand and South Africa had a preferential trading agreement, which ensured cheap food for the mother country and gave preference for British exports.   Withdrawing from this agreement was one of the biggest mistakes Britain ever made.

The UK cannot sign any new trading agreements until after leaving the EU. When they do, expect food prices to drop.     It is, of course, possible that the cost of French cheeses and German wines may rise, but, believe it or not, you can live without them! (My grandchildren, deprived of Cadbury’s fingers, are surviving!)

From the WSJ yesterday:

WSJ Brexit Beyond

Britain Ramps Up Preparations for No-Deal Brexit:    The U.K. government on Thursday published advice for British businesses on how to prepare for an abrupt and messy break with the European Union, a move aimed at underscoring to Brussels that it is serious about walking away from talks if it doesn’t get a satisfactory deal.

Of note:   The Wall Street Journal has a regular “Brexit and Beyond” column.  They have now added a sub-title:  “Europe in Flux.”

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POLITICAL TURMOIL AFFLICTS ANGLO COUNTRIES

Thanks to Brexit, there’s a great deal of political instability in the UK right now.   Theresa May seems unlikely to be able to deliver a “deal” with the EU, while satisfying those who want to leave.   Attempting to do so is really a contradiction!

According to one paper earlier this week, over 100 Conservative MPs are ready to rebel over this.   That could mean a coup against Mrs. May, replacing her with somebody more to their liking.   Boris Johnson is still the favorite.   Mr. Johnson is more conservative than Mrs. May and does not want to compromise with the EU.

Don’t assume this won’t happen.   I woke up this morning to find a similar “coup” took place in Australia on Friday (the day is already over in the Antipodes).    Malcolm Turnbull, leader of the governing Liberal Party (the Conservative Party of Australia) has been ousted and replaced with Scott Morrison.   The latter is more conservative than the former.

Canada is also going through some political turmoil, as Maxime Bernier is quitting the Conservative Party and forming his own party dedicated to “more freedom, less government.”   In recent weeks, he has launched Twitter attacks against PM Justin Trudeau’s “extreme multiculturalism” and immigration policy, according to the BBC’s website this morning.

Mr. Trudeau, the country’s prime minister, is a Liberal who has welcomed thousands of Muslim refugees from the Middle East.   The Conservatives remain in opposition, with an election expected late next year.

The UK, Canada and Australia all share a common heritage and remain members of the Commonwealth.   With a very different political system, the United States is also going through a great deal of internal turmoil after two of President Trump’s former political associates were found to be breaking the law.   The implication is that the president did likewise.   Calls for his impeachment are growing. I don’t think this will happen as the Republicans control both houses in Congress and President Trump has a very loyal support base.

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GERMANY’S CONTINUED RISE TO WORLD PROMINENCE

“The Lord says:   I am furious!  And I will use the King of Assyria as a club.”  (Isa. 10:5; Contemporary English Version).

From Time magazine:

Europe should scale up military spending in order to act as a counterpoint to an unpredictable and unreliable United States, the German foreign minister said in an op-ed Wednesday, an unusually forthright criticism of U.S. foreign policy by a senior political figure in Europe.

In the German newspaper Handelsblatt entitled “A New World Order,” Heiko Maas said that Europe and the U.S. have been drifting apart for years.   Instead of waiting for Trump’s presidency to end, he argued, Europe should take an “equal share of responsibility” globally.

Yet Maas joined in agreement with Trump in demanding NATO members increase their defense spending.   “It is in our own interest to strengthen the European part of the North Atlantic Alliance,” he wrote.   However, he continued, this was “not because Donald Trump is always setting new percentage targets, but because we can no longer rely on Washington to the same extent.”   (Germany’s Foreign Minister: when the US ‘crosses the line,” Europe must act,” by Billy Perrigo.)

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From Deutsche Welle:

Germany on track for world’s largest trade surplus for third consecutive year.    Deutsche Welle * 21 Aug 2018

The country’s $299 billion surplus is poised to attract criticism, however, both at home and internationally.

Germany is expected to set a €264 billion ($299 billion) trade surplus this year, far more than its closest export rivals Japan and the Netherlands, according to research published Monday by Munich-based economic research institute Ifo.

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GERMANY BLAMES TRUMP TARIFFS FOR DESTROYING ECONOMY — MINISTER IN FURIOUS RANT                                (headline in Daily Express; article by Paul Withers, 8/20)

“The US President has triggered a bitter trade war with the likes of Europe, China and Canada by imposing huge import tariffs on a number of goods, including steel and aluminum.

Trade war

He has accused them of unfair trade practices and insists the tariffs are aimed at protecting American jobs.

“Speaking to German newspaper Bild am Sonntag, Economy Minister Peter Altmaier took aim at the US President, claiming consumers were taking the brunt of his import tariffs because they are driving up prices.

He said:   “This trade war is slowing down and destroying economic growth – and it creates new uncertainties.”

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A NUCLEAR GERMANY?

German bomb debate goes nuclear

The security community has become unnerved in the face of Donald Trump’s threats, and some are thinking the unthinkable.

“It’s crucial for Germany and Europe that we have a strategic debate”   — Ulrike Franke, analyst with the European Council on Foreign Relations

BERLIN — Imagine a nuclear-armed Germany (first line of article – (Matthew Karnitschnig, 8/6, Politico)

Headline in the Singapore Straits Times:  “Can Germany and Japan replace the United States?”

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ROYAL WEDDING EUPHORIA HIDES GRIM REALITY

Prince Harry’s wedding to actress Meghan Markle, was a great success, watched by approximately one billion people around the world.   Everything to do with the wedding went smoothly, as we have come to expect from royal events in Britain.

Various estimates were given as to the cost of the wedding. Fox News said it was $34 million.   A British source said 32 million pounds (one pound = $1.34).   The cost was higher than seven years ago, when Prince William got married.   According to Fox, security alone was more than $30 million, considerably higher than at William’s.   Harry had a greater need for security, a sign of the times, together with terrorist threats made against him for his military role in Afghanistan.

The Queen paid for the wedding; the tax-payer covers security.   When President Trump visits London in a few weeks, security will also be expensive.     At least with the royal wedding, the financial outlay will be more than covered by increased tourism, television rights, sales of merchandise made for the occasion, and all those celebratory drinks and meals.

The cost of the monarchy is covered by entrance fees to the royal palaces.

HISTORICAL BACKGROUND

The Economist’s first editor, Walter Bagehot (pronounced “Badge It”), wrote a classic book on the English Constitution, in which he explained the function of the two branches of government.   The monarchy, he said, represented the “dignified” branch of government; while parliament was the “efficient” branch.

The Economist has a weekly column on British politics, called “Bagehot,” in memory of its founder, who edited the publication from 1860-77.    “A royal wedding is as good a time as any to conduct an audit of the British constitution,” is the opening line of this week’s offering.

In the past, the weekly newsmagazine has called for the abolition of the monarchy.   “An Idea whose time has gone,” was one such cover story about twenty years ago.

But this week’s publication points out that the monarchy and parliament have changed roles – “The efficient branch is in its worst state since the 1970s.   The two main parties have been captured by their extremes.   The prime minister lacks authority.   Westminster has been rocked by scandals about sexual harassment and bullying. The Home Office is in turmoil.   The government is preparing for Brexit, its most complicated task since the second world war, without a majority in the Commons or a consensus in its own ranks.” (“Something old, something new”, Economist, 5/19).

Most Members of Parliament do not support Brexit, but the people did in a referendum two years ago.   “The efficient branch now has an agonizing choice: implement a policy that it believes to be foolish, or frustrate the “will of the people.”

“The dignified branch (the Crown), by contrast, is thriving.   The Queen represents stability in an unstable world, as well as unity in a polarized one.   She has spent 66 of her 92 years on the throne and has survived twelve prime ministers and innumerable political crises.”   Last week’s wedding has boosted the popularity of the monarchy around the world; Prince Charles was chosen last month as the new Head of the 53-nation Commonwealth, to succeed his mother; Prince Harry was appointed as an Ambassador to Commonwealth youth; Zimbabwe has asked to return to the organization after leaving fifteen years ago over human rights abuses and failure to uphold the rule of law and democratic norms.

It remains the case, however, that twenty years ago, the monarchy wasn’t doing so well; a reality that could return at any time.

This is the age of populism and no politician is more popular than Queen Elizabeth II, whose approval rating in Britain is always above 70%, more than double the highest rated politician.   Even in her overseas dominions, her popularity surpasses the politicians, so much so that many of them would like to say goodbye to her and the institution of constitutional monarchy. It is the ordinary people who feel differently and from whom she gets her greatest support.

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GERMANY TO REPLACE US AS HONEST BROKER IN MIDEAST Handelsblatt Global, 18 May 2018

“Iran, Gaza, Jerusalem: If ever the time was right for EU countries to unite in their foreign policy as in their trade policy, it is now . . .    May 2018 could one day enter history books as the moment when the EU countries including Germany at last embarked on a common foreign policy.   The catalyst, as long expected, will have been an external power.   Not, however, a common foe, but an ostensible ally: America’s Donald Trump.

“. . . the US and Europe can no longer pretend to be aligned.   The US has forfeited its role of honest broker [in the Middle East] . . .   If there is today an honest broker, it may ironically be Germany…

“Angela Merkel and her EU peers have certainly grasped the urgency of the moment . . .   For Germany to play a diplomatic role . . .   it would need to boost military spending far beyond its paltry 1.2% of GDP…”

(Handelsblatt is an influential German business paper; the German equivalent of the Wall Street Journal and the Financial Times.)

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EUROPEAN NEWS

Macron to Silicon Valley: Embrace Europe’s Regulations:   French President Emmanuel Macron ratcheted up tensions with U.S. tech giants Thursday calling on them to embrace Europe’s regulation of topics ranging from taxation to privacy to artificial intelligence, because Washington is failing to do so.

Europe Seeks Russia’s Help on Saving Iran Deal, Despite Chill:  U.S. President Donald Trump’s withdrawal from the nuclear deal with Iran has added fresh impetus to a European outreach to Russia—although European officials say existing tensions make it far from a thaw.

Britain Takes Stab at Wrangling Dirty Money:   The publication this week of a U.K. parliamentary report calling for tougher action to stop the flow of dirty Russian money into Britain is a landmark moment for the City of London, writes Simon Nixon.

ECB Warns Against Trade Spats, Urges Patience in Easing:   European Central Bank officials warned at their April rate-setting meeting that international trade conflicts could hurt the eurozone economy and called for patience in phasing out the bank’s easy-money policies.                                                                                                        (Brexit and Beyond, WSJ, 5/23

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IN FACE OF A GLOBAL TRADE WAR

The EU announced its first defensive measures against US plans to penalize European companies’ business engagements with Iran, by reactivating the 1996 “Blocking Statute.” That law prohibits companies from terminating their business engagements with Iran, to avoid severe penalties in the United States.   Some companies from Germany and other EU countries have already announced that they will cancel their contracts with Tehran to avoid endangering their business ventures in the US. German companies, involved in profitable ventures with Russia, could be facing a similar situation.   Washington threatens to demand that businesses from Germany and the EU comply also with the April 6 sanctions announced by US President Donald Trump, against some Russian oligarchs and their companies.   According to government advisors, German Russia-oriented businesses are “virtually panicking” because of the escalation of a global trade war.
(https://www.german-foreign-policy.com/en/news/detail/7612/)

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Newsletter – How to Become a World Power

Berlin is seeking to use Washington’s withdrawal from the Iran nuclear deal to increase its pressure on Tehran. In their joint statement published Wednesday, the governments of Germany, France and the United Kingdom declared their continued commitment to the agreement, while demanding that the Iranian government limit its ballistic missile program and its efforts to obtain influence in the region.   The reintroduction of US sanctions offers Berlin a chance to disguise its continued pressure on Tehran as a war preventive measure.   At the same time, US sanctions against Iran continue to fuel the power struggle between the EU and the USA.   The Airbus Company alone could lose €16 billion in commercial deals due to the sanctions imposed by the US government.   Commentators recommend resistance:   “You don’t become a world power in a conference room.”   At the same time, Israel is exacerbating the escalating tensions with its aggressions against Syria.

more…
(https://www.german-foreign-policy.com/en/news/detail/7606/)

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Der Spiegel comment on EU / US relations

“With his decision to blow up the Iran deal, U.S. President Donald Trump has thrown Europe into uncertainty and anxiety — and raised the specter of a new war in the Middle East. One thing is certain: the
trans-Atlantic relationship has been seriously damaged.”

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Zimbabwe Formally Applies to Re-Join Commonwealth

To re-join, Zimbabwe must demonstrate that it complies with the fundamental values set out in the Commonwealth Charter, including democracy and rule of law plus protection of human rights such as freedom of expression.   The membership process requires an informal assessment to be undertaken by representatives of the Secretary-General, followed by consultations with other Commonwealth countries.   Zimbabwe has also invited the Commonwealth to observe its forthcoming elections in July.

Zimbabwe was suspended in 2002 for breaching the Harare Declaration.  In 2003, when the Commonwealth refused to lift the suspension, Zimbabwe withdrew from the Commonwealth.   Since then, the Commonwealth has played a major part in trying to end the political impasse and return Zimbabwe to a state of normality.(http://allafrica.com/stories/201805210678.html)

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ISLAM INCOMPATIBLE WITH HUMAN RIGHTS

  • The United Nations Human Rights Council (UNHCR) itself has become a prime motivator and enforcer of the rejection of human rights.
  • The other charters of human rights are to be found exclusively in the Muslim world.   Anything that falls within Islamic shari’a law is a human right; anything that does not fall within shari’a is not a human right.
  • “For us the Universal Declaration of Human Rights is nothing but a collection of mumbo-jumbo by disciples of Satan”. — ‘Ali Khamene’i, Iran’s current Supreme Leader.
  • “The underlying thesis in all the Islamic human rights schemes is that the rights afforded in international law are too generous and only become acceptable when they are subjected to Islamic restrictions.” — Ann Elizabeth Mayer, Islam and Human Rights: Tradition and Politics.