Radical reforms for Japan for rapid growth

“With a hung parliament, there will not be progress nor any growth to implement radical reforms, only when Japan gets it’s act together will the history stigma of more than a decade of lacklustre GDP performance be gone forever. – Contributed by Oogle.”

Posted: 04 June 2012 1416 hrs
TOKYO – Japan’s Prime Minister Yoshihiko Noda reshuffled his Cabinet Monday, bowing to opposition pressure for ministerial scalps as he looks to secure cross-party support for a tax hike.
Noda announced a limited rejig naming five new ministers and called on the Liberal Democratic Party (LDP) to give their backing to a Bill that would eventually double sales tax and help partially plug a gaping budgetary hole.
“I decided to reshuffle and strengthen the Cabinet so as to create an environment that enables progress in issues including an overall reform of social security and tax,” Noda told reporters.
Noda has staked his premiership on the sales tax, a move international bodies, academics and journalists all agree is a sensible measure in the battle to overhaul Japan’s debt mountain, which currently stands at around twice GDP.
Part of the proceeds would be used to finance snowballing social security costs resulting from Japan’s rapidly greying society.
But in the highly factionalised world of Japanese politics, Noda has been left trying to placate an opportunist opposition after failing to secure the backing of one of his own party’s key powerbrokers.
Democratic Party of Japan powerbroker Ichiro Ozawa, who leads around 100 lawmakers, has set his stall firmly against the tax rise, which he sees as politically unacceptable.
Some of Monday’s sackings were part of the price Noda must pay if he wants cross-party backing for his Bill.
“Toward the end of the current parliamentary session, we will face a crucial decision that will affect the future of Japan,” he said.
“I call for all the politicians, on both sides of the House, to take these proposals seriously,” he said, adding the Bill would come before the Lower House before the parliamentary session ends on June 21.
Defence Minister Naoki Tanaka and Transport Minister Takeshi Maeda lost their jobs after both being censured by the opposition-controlled Upper House in April.
Noda named Takushoku University professor Satoshi Morimoto, a well-known polemicist and regular on television talk shows, as new defence minister, while the new transport minister will be his party’s Upper House affairs chief Yuichiro Hata.
Morimoto is the first non-parliamentarian in a Noda Cabinet.
An advocate of a closer security alliance with the United States, Morimoto has said Japan’s Self-Defence Forces should actively participate in peacekeeping missions abroad, once a sensitive issue in Japan.
To supplement an expected decline in the US military presence in Okinawa when US Marines relocate to Guam, Hawaii and Australia, Japan should “make efforts in defence of its southwestern” region to maintain a deterrent against unpredictable North Korea and increasingly assertive China, he has said.
Noda also sacked Agriculture Minister Michihiko Kano, whose involvement — albeit at several steps removed — in a spy scandal that allegedly saw sensitive documents passed to a Chinese diplomat, has proved an embarrassment.
Justice Minister Toshio Ogawa, who has been criticised by the LDP for consulting horse racing websites on his mobile phone during a parliamentary session, and Postal Services Minister Shozaburo Jimi were also removed.
Noda named former vice-agriculture minister Akira Gunji as new agriculture minister, vice-judicial affairs minister Makoto Taki as justice minister, and vice-reconstruction minister Tadahiro Matsushita as postal services minister.
Noda stressed Monday that “making an agreement with the largest opposition LDP is the most important” thing in enacting a tax hike Bill, but stopped short of offering the opposition any kind of grand coalition. New cabinet line-up:
Prime Minister: Yoshihiko Noda
Deputy Prime Minister: Katsuya Okada
(Okada is also in charge of social security and tax system reform)
Finance Minister: Jun Azumi
Foreign Affairs Minister: Koichiro Gemba
Economy, Trade and Industry Minister: Yukio Edano
Defence Minister: *Satoshi Morimoto
Environment, Nuclear Disaster Minister: Goshi Hosono
Justice Minister: *Makoto Taki
Internal Affairs and Communication Minister: Tatsuo Kawabata
Health, Labour and Welfare Minister: Yoko Komiyama
Education, Culture, Sports and Science Minister: Hirofumi Hirano
Agriculture, Forestry and Fisheries Minister: *Akira Gunji
Land, Infrastructure, Transport and Tourism Minister: *Yuichiro Hata
Chief Cabinet Secretary: Osamu Fujimura
State Minister in charge of:
Economic and fiscal policy, national strategy: Motohisa Furukawa
Postal Reform, Financial Affairs: *Tadahiro Matsushita
Public Security, North Korean abduction issue, Consumer Affairs, Food Safety: Jin Matsubara
Reconstruction from disaster: Tatsuo Hirano
* denotes newly appointed ministers

– AFP/al/fa

Spending your way out of recession, but you must increase your future income

“Use credit wisely, it must be able to increase your future income, or you will never get out of poverty. – Contributed by Oogle. “

By Stella Mapenzauswa

JOHANNESBURG | Fri Jun 1, 2012 12:33pm EDT

(Reuters) – Like many South Africans, Nkululeko Makhaya has only the most basic financial strategy for his future: a pension contribution deducted from his salary and 100 rand ($11.90) put aside each month towards family funeral cover.
The 35-year-old admits this is woefully inadequate, but with only a modest salary and obligations to both his immediate and extended family, there is barely enough each month to see him through to the next paycheck, let alone save.
Cue the future: what happens in 30 years when he is still very much alive but retired, and inflation has eaten into his pension?
“I’ll get by somehow. Hopefully my children will have good jobs and take care of my wife and me in return for the good education I’m paying for now,” said Makhaya, a salesman for a Johannesburg cleaning products firm.
“I might not even live to retirement, in which case the funeral policy will come in handy.”
In fact, Makhaya is setting aside more than most people in South Africa, where the majority of households are forced – or choose – to spend most of their income, and just keep their fingers crossed about the proverbial rainy day.
The weak savings culture is a big headache for the government because it hampers speedy economic growth. With less cash sloshing around its banking system, South Africa cannot finance the infrastructure such as roads, ports and broadband Internet needed to move its economy up a gear.
Tellingly, it fares poorly on both growth and savings when compared to peers in the BRICS bloc of developing countries.
This year, South African GDP is forecast to grow at a rate below 3 percent, against 8 percent for China and 7 percent in India. And its savings rate of just 16 percent of GDP compares with 53 percent for China, 34 percent in India and 20 percent for Russia. Alarmingly, it appears to be getting worse.
“A strong savings culture is almost a prerequisite for sustainable economic development and South Africa has in the last 10 years or so gone backwards very fast,” said Peter Dempsey, deputy CEO of the Association for Savings and Investment South Africa, a trade group for firms that provide savings products.
SAVING NOTHING
“Households basically save zero percent in aggregate, meaning at a national level household income equals household expenses. If you go back 10 to 15 years ago it was probably sitting at 6 to 7 percent,” Dempsey told Reuters.
Net household savings, mainly in the form of retirement funds, long-term insurance, unit trusts and bank deposits, have been in negative territory since 2005, the Treasury says. In contrast, household debt as a ratio of disposable income remains unsustainably high at 75 percent.
Finance Minister Pravin Gordhan and his predecessor, Trevor Manuel, both begged South Africa’s 50 million people to save more, but their entreaties were trumped by the power of bling – those with disposable income would rather spend it on the latest flat-screen TV or smartphone than put it away for the future.
This partly reflects South Africa’s racially divided apartheid past in which millions of marginalized blacks had no access to credit and other financial services. They are now grabbing the chance to acquire assets at the expense of saving.
“It’s not necessarily a bad thing,” said Colen Garrow, an economist at Meganomics.
“Low savings levels should be seen in the context of assets such as homes and motor vehicles that new consumers purchased after the first democratic elections in 1994. Before that, most South Africans were simply not able to buy such assets.
“But I can see why Pravin Gordhan is worried. If you can’t finance investment out of your savings – which we can’t – then you’re going to have to go out of South Africa and borrow on international capital markets. That’s exactly what’s happening.”
Under apartheid, black South Africans with little access to traditional banking came up with informal savings schemes like “stokvels”, in which a small group of around a dozen people – usually women – gather once a month and pool their savings.
Each chips in a small fixed sum, usually between 100 and 1,000 rand, and a different member each month gets to take home the whole pot. Peer pressure ensures all members contribute, providing a convenient way for women in poor townships to save up for big purchases like furniture.
An estimated 40 billion rand ($4.8 billion) is invested in stokvels, a recent study shows, but the money rarely finds its way it into the formal financial system, denying the economy access to funds that could help fund crucial investment. Banks and investment companies are trying to get access to that money.
Sluggish growth represents a major political threat for the ruling African National Congress, the former liberation movement which turned 100 this year but is still learning how to run a sophisticated emerging market economy.
The government says growth needs to hit 7 percent to make any sort of a dent in unemployment that, at 25 percent, is crushing the dream of the “Rainbow Nation” by perpetuating the racial inequalities of apartheid and fuelling one of the world’s highest rates of violent crime.
Angry township protests by young men with little to lose are already a daily occurrence, and, after uprisings across the Middle East and north Africa in the last 18 months, top ANC officials admit they sitting on a powderkeg.
SPEND, DON’T LEND
However, with bank charges stubbornly high despite government pressure to get them down, and interest rates at 30-year lows since the end of 2010, there is very little incentive for most South Africans to save.
Yields on 3-year domestic debt are now at 6.5 percent, close to historic lows and compared with 8 percent five years ago.
Meanwhile, banks, credit card firms and shops make it all too easy to borrow, despite a law introduced in 2006 to try to enforce responsible lending.
Which is why Nkululeko Makhaya’s neighbor in the lower-middle-income Johannesburg suburb of Bramley drives the latest BMW model. And why 23-year-old receptionist Sindi Mpheko can only afford to rent a small backyard room in the rundown township of Alexandra but always turns up for her job in the Sandton financial district kitted out in the latest trendy wear.
“I’m just taking care of me for now, no responsibilities. I want to have fun while I can and worry about the future later, in my late twenties,” Mpheko says, a touch defensively.
She is among the 90 percent of South Africans the Treasury says are not tucking away enough savings and investment to enable them to retain the same living standard on retirement.
Even higher income earners such as chartered accountant Carol Khozwayo would rather invest in “visible” assets such as property than put money in the stock market or government bonds.
Khozwayo and her husband have re-mortaged their house in the upmarket Four
ways suburb of northern Johannesburg to purchase two smaller town houses they rent out to finance the repayments.
The 2007 collapse of asset management firm Fidentia in a fraud scandal in which millions of rand – including pensions for miners’ widows – went missing, has also given the savings industry a bad name.
“I would rather see physical evidence of my investment and be assured that my children’s future is fairly secure,” Khozwayo said. “Look what happened to Fidentia.” ($1 = 8.3367 South African rand)
(Editing by Peter Graff)

A Timeline for the Global recovery

“Uncertainty is bad for growth and economic activity, it will affect the creation of wealth, where if one knows his daily expenses, he can use his savings to use money to make money, therefore if you are spending less than you are making, you will have a surplus, but do not anyhow spent money unless you are debt free, credit money must be utilised for opportunities to make more money. Therefore anything related to the expansion of future income will see a tremendous increase, eg education, IT, investments, infrastructure. – Contributed by Oogle.

by Sundaram Janakiramanan

04:45 AM Jun 01, 2012

The last two years have been very bad for the global economy, with the world’s two leading economies, the United States and Europe, facing major problems.
However, the markets have shown improvement over the past six months.
President Barack Obama’s stimulus package has resulted in positive growth, which – despite being very small – indicates that the structural issues of the US can be tackled if further positive steps are taken.
Unfortunately, the coming presidential election has caused a political impasse in which both the Democratic and the Republican parties have displayed extreme hesitance to take affirmative steps towards improving the economy.
Europe, for its part, is mired in a debt and growth crisis, with no signs of relief without European Central Bank (ECB) bailouts.
Most of the troubled countries in the European Union face negative economic growth and high unemployment.
While the ECB has displayed willingness to come to the aid of such countries, including Greece, that aid is contingent upon those countries implementing contentious austerity measures.
The problems in these two leading economies have had a massive impact on Asian countries: China, where growth has been in excess of 8 per cent over the past few years, has suffered a drop in growth to about 7 per cent.
Singapore’s economic growth is expected to be between 1 and 3 per cent this year.
In this climate, where the economic news has only gone from bad to worse, there is merit to questioning how long it will take for the world economy to turn around and what factors will play into this change in the global economic order.
END TO US POLITICAL IMPASSE
While many may find it hard to believe, this turnaround may not be that far off, and in fact may appear as early as the middle of next year. There are several reasons for such optimism.
The US political impasse will end after the November presidential election, regardless of whether Mr Obama wins a second term or Mr Mitt Romney, the most likely Republican candidate, takes the White House.
Historically, whichever of the two main parties wins the presidency also tends to gain a number of seats in Congress.
Currently, the Democrats hold a thin 51-49 majority in the Senate and the Republicans have a significant 240-192 majority in the House of Representatives.
In all likelihood, these numbers will shift. If Mr Obama wins, then the Democrats are likely to strengthen their majority in the Senate and narrow the Republican majority in the House of Representatives.
This outcome will provide Mr Obama and the Democrats with the political capital needed to pass such reforms as his recent “Five-Point To-Do List”, which includes eliminating tax incentives for companies that outsource jobs and creating tax credits for small businesses that invest in clean energy.
If Mr Romney wins, Republicans are likely to control both chambers of Congress, allowing them to push their political equivalent of Mr Obama’s reforms more effectively.
The breath of political certainty that will undoubtedly manifest after November will put either party in a better position to push their strategy for economic reform.
Since any movement is better than stalemate, the US economy is very likely to improve in response to that political certainty.
EUROPE’S ECONOMIC REGENERATION
Much has been made of the strong European opposition to the ECB’s suggested austerity measures. Again, electoral politics will influence economic growth and progress.
It is likely that the results of the elections in Greece this month will force any new government to leave the euro zone by the end of next month.
Some analysts believe this will have a “domino effect” that will lead other troubled countries, including Ireland, Spain and Portugal to leave as well, resulting in the collapse of the euro itself.
This would cause European nations that currently use the euro to start using their native currencies again.
While this would certainly be a very bad thing in the short-term, such a collapse would force European nations to confront their underlying structural problems head-on and implement policies that would encourage economic regeneration.
Germany, the biggest economy in the euro zone, has pointed out that other European nations would only suffer a 3 to 5 per cent economic loss.
Indeed, Europe is in a better position now than it was 18 months ago to manage an economic fallout, and the contagion risk has decreased dramatically in that intervening time.
But whether the contagion comes to pass or not, Europe is not likely to be as drastically affected by a Greek exit from the euro zone as the media has indicated.
As a result, European economic growth rates will begin to improve over the course of the next year or so.
CHINA AS MAJOR BENEFICIARY
Assuming that the European and American economies will improve over the course of the next year, Asia will certainly benefit from that growth.
China, in particular, will be a major beneficiary. Its economy will grow more from the second half of next year, with its growth rate returning to the rate of 8 per cent or higher. It will probably take advantage of the possibility of a defunct euro to attempt to push the yuan as a reserve currency along with the US dollar.
Since reserve currencies are obliged to be fully convertible, it will certainly work towards rendering the yuan as such.
India is also likely to take advantage of possible improvements in the global economy by turning the rupee into a fully-convertible currency. With the country tipped to grow at a rate exceeding 7 per cent, more Indian companies are likely to take advantage of a global boom to become more involved in foreign acquisitions.
IMPACT ON SINGAPORE
Singapore will prosper in many sectors in the event of an imminent global recovery.
The manufacturing sector would expand based on increased export possibilities. The influx of tourists would increase with the improved economic situation, increasing revenues in the food, beverage, retail and entertainment sectors.
Port revenues are also likely to increase in accordance with an extrapolated increase in demand for shipping. Improvements in the import-export business will benefit our banking sector.
Even the STI Index could reach a high of 4,000 by the end of next year.
While an improved economic situation will provide more employment opportunities, it will also result in increased inflation. If the euro were in fact to collapse, the US dollar would strengthen against the Singapore dollar.
In the event of India and China making their currencies fully convertible, Singapore would actually become one of the leading off-shore centres of trade for these currencies.
A global economic recovery is entirely contingent upon the way American and European politics will proceed over the course of the next few months. At this stage, any movement in those regions is better than no movement and, as such, the outlook is
far less bleak than we think.

Sundaram Janakiramanan is associate professor and head of programme for finance at SIM University’s School of Business.

Microfinance Activities to help the poor: why cdc and workfare may not be enough

“I can easily duplicate what the FED does and do it 1000% more efficiently. – Contributed by Oogle. “

Business Loans

  • The most common activity in microfinance is providing small business loans to entrepreneurs in poor nations. These loans are amounts that are very small by First World nation standards, but in many countries $100 to $500 is more than enough to fund an entire business start-up including materials, supplies, advertising, and an emergency fund. These loans can bring profitable businesses to some of the most destitute places in the world, and the prosperity of even a few business owners can be enough to help lift an entire village out of poverty. Banks traditionally don’t make loans that small, which is where microfinancing comes in.

Microfinance Grants

  • There are also microfinance grants that are offered by various organizations. The idea behind microfinance grants is that small donations given to specific villages, small business start-ups, or very specific projects will be a more efficient way of using donated money than a large-scale donation. One of the major advantages of a microfinance grant is that the structure forces a clear use for the money. Each grant can be traced to a specific person, business, or place as opposed to large-scale charity, where it’s easy for many donations to slip through the cracks or get eaten up by administration fees.

Microfinance Charity

  • One of the most active sectors of microfinance is charity. Microfinance has caught on with many charities that allow people to donate directly to a project needing financing without using a bank as a middleman. Kiva is one example of a charity that does this. An individual requesting a microfinance loan can tell his story, what he wants the money for, and how much is needed to get going. A person can look through the individual requests and use PayPal to donate however much she wants toward these loans. The charity takes a small percentage, and then gives these loans out with low interest rates to help people fund microfinance projects across the world.

    Currently, Singapore’s three main banks do not give small loans to borrowers without collaterals. With growing income inequality, coupled with Singapore’s unique circumstances, new ways of making credit available to the less well-off segment of the population are needed.
    At a recent IPS Roundtable, possible models of a small loan facility in Singapore were discussed. Presenting at this Roundtable were also members from Pertapis, AWARE, and Fullerton Financial Holdings.
    Patsian Low from the Microfinance Society (Singapore) was part of the team that presented the AWARE Microcredit Scheme proposal.

    http://microfinance.org.sg/

    http://www.mixmarket.org/networks/bwtp

Inclusive Growth Programme? “Six in 10 will receive productivity-led wage increase of at least 10 per cent” and you need to spend $100 million to only upgrade 100,000 workers. What an inefficient use of money, or got no money? With S$100 million I can create Microfinance and fund the entire world.
SINGAPORE: A programme to improve the skills of low-wage workers and help them earn better pay has benefited some 8,000 workers so far.
Since its launch in August 2010, the Inclusive Growth Programme has supported more than 540 projects on job redesign, improved work processes, automation, as well as best sourcing initiatives.
Giving an update on the work of the Employment and Employability Institute (e2i), its chairman and NTUC deputy secretary-general, Ong Ye Kung said another 33,000 workers will stand to gain when all 540 projects under the programme are fully implemented.
Of which 24,000 are Singaporeans earning a monthly wage of S$1,700 and below.
Six in 10 will receive productivity-led wage increase of at least 10 per cent.
The Inclusive Growth Programme was launched by the labour movement in 2010.
During this year’s May Day celebrations, the government announced that it is increasing the funding for the programme to S$100 million to upgrade 100,000 workers by 2015.
Mr Ong said e2i helped a total of 46,000 workers last year, in terms of job placement, skills upgrading, and upward wage adjustments through productivity improvements.
This figure is a 15 per cent increase from 2010.
In driving employment and employability programmes for the financial year ending March 2012, e2i gave out S$19.6 million in government grants.
The funds support training of workers and skills upgrading of job seekers to secure new jobs, as well as support companies’ efforts to raise productivity and share gains.
Mr Ong said in the next one to two years, e2i is ramping up development of the new “Devan Nair Institute for Employment and Employability” CET campus by end 2013.
He added that the institute is looking forward to serve more workers, and strive for inclusive growth and a better life for Singaporeans.

– CNA/cc

Global recovery will be fueled by expansion of credit

There is a secret which even those who try to stop me from getting a loan will find out, there is less supervision by banking authorities against VISA which is able to grant credit short term loans as long as you qualify eg there is no limit which means I can buy a Ferrari or a Mansion for those who can afford it, but the interest is between 18%-24% per annual if you do not pay up, so those who are rich can afford to use it to pay for anything they fancy, which will give a great boost to the global economy, if I am not wrong by end of this year there will not be a recession anymore around the world, everybody will be celebrating Christmas, and travel and tourism will boom.

VISA share are worth more value to me than Apple or Facebook because I can create money and give credit unlike banks which need strict regulations, and I can create shareholder value with more than 500% increase, and all clients of VISA are very rich people, giving me contacts and access to goodwill which nobody can. Traditional income from credit card companies is from 18%-24% per annum which is very lucrative against a backdrop costs of only global interbank rates of less than 2%, where I am very confident of a recovery, so the risks is only short-term, I can afford to be liberal and grant everyone credit as long as they have a clean credit record. Based on the possibility of risks where the rate of default is calculated, I am very confident the default rate is minimum, creating a great opportunity for those who dares.

Use derivatives to expand credit based on your future earnings. Since you have already established your base, and increased your sales, increasing sales means you need to expand your credit, and using derivatives to expand your credit reach is the best way to use financial products, where you can hedge and expand your credit facilities with your future earnings to create more profits, managing it against a balance of risk-returns-profits.
– Contributed by Oogle.

ECB, EC, EP, European Court of Justice all needs money, and from whom?

“Eurobonds, EU Fiscal Union and the FED are not perfect solutions, only the unlimited supply of money without a devaluation of inflation or risks with direct links to World Bank/IMF where the unlimited perfection of technologies and innovations will create jobs for everyone, even China needs a stimulus to create growth to ensure the global recovery. I can print money without any worries. – Contributed by Oogle.”

By Noah Barkin and Daniel Flynn

BERLIN/PARIS | Sun Jun 3, 2012 1:45pm EDT

(Reuters) – When Jean-Claude Trichet called last June for the creation of a European finance ministry with power over national budgets, the idea seemed fanciful, a distant dream that would take years or even decades to realize, if it ever came to be.
One year later, with the euro zone’s debt crisis threatening to tear the bloc apart, Germany is pushing its partners for precisely the kind of giant leap forward in fiscal integration that the now-departed European Central Bank president had in mind.
After falling short with her “fiscal compact” on budget discipline, German Chancellor Angela Merkel is pressing for much more ambitious measures, including a central authority to manage euro area finances, and major new powers for the European Commission, European Parliament and European Court of Justice.
She is also seeking a coordinated European approach to reforming labor markets, social security systems and tax policies, German officials say.
Until states agree to these steps and the unprecedented loss of sovereignty they involve, the officials say Berlin will refuse to consider other initiatives like joint euro zone bonds or a “banking union” with cross-border deposit guarantees – steps Berlin says could only come in a second wave.
The goal is for EU leaders to agree to develop a road map to “fiscal union” at a June 28-29 EU summit, where top European officials including European Council President Herman Van Rompuy will present a set of initial proposals.
European countries would then put the meat on the bones of the plan in the second half of 2012, several European sources have told Reuters, including a timetable for overhauling EU treaties, a step Berlin sees as vital for setting closer integration in stone.
“The fundamental question is relatively simple. Do our partners really want more Europe, or do they just want more German money?” a government official in Berlin said.
If European countries go ahead, the steps would represent the most significant policy leap since they agreed to give up their national currencies and cede control over monetary policy 13 years ago. But the hurdles are daunting.
“The world is not coming to an end; rather, it feels as if we are on the doorstep to another major European integration move,” said Erik Neilsen, chief economist at Unicredit. “But why do these initiatives only come when we are on the edge of the cliff where the risk of an accident is so much higher?”
HOLLANDE QUANDARY
Spain, whose banking troubles have made it the latest target of financial markets, signalled over the weekend that it was on board with a key element of the plan.
Prime Minister Mariano Rajoy backed the creation of a new euro-wide fiscal authority of the kind Trichet sketched out in a speech in Aachen, Germany last year.
But other states, including the bloc’s second-biggest member France, have deep reservations about ceding so much sovereignty.
New President Francois Hollande rode to victory in a French election last month promising new steps to boost growth. At the EU summit later this month, he and other leaders were expected to gang up on Merkel, pressing her for new growth-enhancing measures.
But after a series of modest concessions from the German leader, a loose consensus on a growth strategy already appears to have been reached weeks before the leaders meet.
Now, the main focus of the summit seems likely to be on steps needed for a “fiscal union”, a debate which puts Hollande in a far more difficult position, even if people who know him well say his vision of Europe is much closer to the federalist German model than those of his Gaullist predecessors.
“It’s a big challenge for Hollande,” said a senior French official who declined to be named. “I think that he is ready for (closer fiscal integration) but I think the rest of the French political class – both on the left and right – is not.”
The hope in Berlin and other capitals is that if leaders can present a credible plan for moving towards a fiscal union, further contagion – even in the event of a Greek exit from the euro zone – can be limited, one senior central banker said.
But even if the Germans do win over the French and other sceptical countries like Finland and Austria, there are serious doubts about whether a 5-10 year plan for closer integration – weighed down by lengthy national debates over treaty change – will be enough to restore investor confidence now.
That means for some time the European Central Bank will remain the institution capable of acting quickly to avert disaster.
Even though it has made clear it wants governments to sort out the mess, a strong signal of intent from EU leaders could encourage the Frankfurt-based ECB, particularly if progress is made towards the sort of bloc-wide banking structures it has pressed for.
“The European leadership is working feverishly on the necessary fundamental changes, while the ECB no doubt stands ready with the fire hose if anything goes wrong in the meantime,” Neilsen said.
SPANISH BANKS
On top of Greece, Spain’s banking sector, dragged down by bad property debts, is a huge concern that continues to undermine faith in the bloc’s ability to get a grip on its crisis.
Germany is pressing Madrid to accept aid under the bloc’s rescue funds so that it can recapitalize its stricken financial institutions, multiple sources have told Reuters.
But the Spanish government is resisting, fearful of the stigma attached to a formal state rescue. It is trying to convince its partners to let EU bailout funds bypass the state and funnel aid directly to banks – a step Berlin opposes.
As long as the Greek nightmare continues and doubts about Spain’s banks persist, no amount of closer integration is likely to calm investor nerves.
The ECB is already girding, however reluctantly, to counter any new turmoil in t
he months ahead.

One ECB source told Reuters the bank had a number of tools at its disposal to tide the bloc over, including cutting interest rates and launching a third round of cheap loans to banks via a so-called Long Term Refinancing Operation (LTRO).
It is much less keen to revive its government bond-buying program.
Another problem with the German-led drive is that of democratic legitimacy.
Many of Europe’s struggling citizens already blame technocrats in Brussels for their troubles. And lawmakers across the bloc are keen to safeguard their right to veto EU decisions.
Against that backdrop it will be extremely difficult for leaders to convince their electorates about the integration steps under consideration in Berlin and other capitals.
To address this, officials are mulling a significant strengthening of the role of the European Parliament (EP), which is directly elected by the bloc’s citizens.
A German official at a European institution said, for example, that oversight powers for the bloc’s permanent rescue fund – the European Stability Mechanism (ESM) – could be transferred from national assemblies to the EP.
The French official said it would inevitably fall to the EP to monitor the European Commission if it won new powers over national budgets.
“The issue is that democratic control will now take place at a European level, and not at a national one,” the official said. “I think the problem is not so much the European people but the European politicians who don’t want to relinquish their power. There you will see a lot of resistance.”
(Reporting by Noah Barkin, Daniel Flynn, Andreas Rinke, Paul Taylor, Ilona Wissenbach, Julien Toyer, editing by Mike Peacock)

Using websites, softwares and sublimal messages to train on knowledge

Therefore if you understand the above logic, it is therefore possible to create the pathway of the memory by creating connections, to shorten the learning curve but not the learning process, where it is possible to increase the capacity of the brain up to 1000 times, like the formating of the hard disk to create tighter space, to smoothen and pack data like the learning process, to shorten the learning curve. The human brain is adaptable against the environment, when it is pushed to the limit it will adapt, but if the process of “formating” is not completed, it will result in brain damage. What then is the process of “formating”? It is the unconscious process of sleep when you programme your brain to accept more information thru mind control, using sublimal messages, even the entire learning process. If my theories are correct, it might even be possible to “programme” a person to learn everything about a topic eg “economics” and be an expert over a period of time, if too much information is processed, there may be consequences, so a balanced approach is needed. If you understand everything I have mentioned, I already have invented the method of developing intelligence for mankind, totally changing the landscape of learning.
Websites and softwares can be utilised to train your mind, where the ability of sublimal messages to link keywords and associations, to be inserted into your sub-conscious mind. It is part of my “intelligence” of my 3D search engine model, the ability to process large amounts of information to study using your brain memory will cause an overload, causing brain damage, a shortcut method is the ability to use keywords and associations to link info, group data and recall them using your sub-conscious mind by creating connections, like using synapses in your brain. If you are able to create this “linking and associations”, that is the cornerstone of intelligence, which will give you an increased brain power in cutting your learning curve, increasing your capacity of your brain without using memory power, creating a possibility to create a brain 1000 your present capacity. That will be the my cornerstone of my research.
As such, if you are able to link to an external source like the internet where the vast information is contained, your computer will increase your processing power, all you need is a basic understanding of the topics you want to understudy to do the impossible, even doing research if you are able to accurately link and associate data very accurately to create intelligence.
If you understand this logic, I could therefore create an unlimited amount of jobs for everyone if you are able to accurately provide productivity eg a low income worker can even upgrade himself to do another job which pays higher salary without a fear of being stuck at a low end job forever.
You could therefore train at your own time and pace, getting certified when you are ready at the lowest costs possible, on an unlimited amount of knowledge of any topics.
– Contributed by Oogle.