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Spanish ‘Anti-Austerity’ Protesters “Sick Of This System They Call Democracy” | Zero Hedge
Spanish ‘Anti-Austerity’ Protesters “Sick Of This System They Call Democracy” | Zero Hedge.
“I’m here to fight for my children’s future,” exclaims one father as Spaniards rallied in Madrid against poverty and EU-imposed austerity. As Reuters reports, the largely peaceful protest latermarred by violent clashes in which police fired rubber bullets. The so-called “Dignity Marches” brought hundreds of thousands to the capital with banners making it clear what their feelings about record 26% unemployment were – “Bread, jobs and housing for everyone” and “Corruption and robbery, Spain’s trademark.” One protester summed up the people’s views of the government,“I’m sick of this system they call democracy… I want things to change.”
The so-called “Dignity Marches” brought hundreds of thousands to the capital, according to estimates of Reuters witnesses. Travelling from all over Spain, they were protesting in support of more than 160 different causes, including jobs, housing, health, education and an end to poverty.
…Spaniards rallied in Madrid on Saturday against poverty and EU-imposed austerity in a largely peaceful protest later marred by violent clashes in which police fired rubber bullets.
Some protesters started to throw stones and bottles at the large numbers of riot police present and attacked cashpoints and hoardings. The police fired rubber bullets to disperse them, according to video footage seen by Reuters.
Central government representative Cristina Cifuentes said 19 protesters had been arrested and 50 police officers had been injured, one of them very badly, in the clashes.
Once again the issue is government corruption combined with austerity (or at least slowing growth in spending to be perfectly clear) – a combination that we have discussed numerous times tends to end in social unrest…
A housing bubble burst more than five years ago, forcing a 41-billion euro ($56 billion) bailout of Spain’s banks, squeezing homeowners and throwing millions out of work.
The government introduced public sector austerity to whittle down the deficit, provoking widespread anger amongst middle- and low-income families as dozens of cases of corruption in the ruling class are investigated by judges.
The people’s feelings were clear as the OECD says the economic crisis has hit Spain’s poor harder than in any other country in the euro region.
Banners urged the conservative government not to pay its international debts and to tackle Spain’s chronically high unemployment of 26 percent.
“Bread, jobs and housing for everyone“, read one banner, “Corruption and robbery, Spain’s trademark,” said another.
“I’m here to fight for my children’s future,” said Michael Nadeau, a 44-year-old entrepreneur.
“For those who are in power we’re just numbers. They value money more than they value people,” he said, shouting to be heard above the din of chanting, whistling and drumming.
“(I’m here because) I’m sick of this system they call democracy,” said Jose Luis Arteaga, a 58-year-old teacher whose wage has been cut 20 percent. “I want things to change.”
It seems that almost record low bond yields and high stock market levels did not appease the people of Spain either…Time for that IMG income inequality equalizing wealth redsitriburion it would seem…
Spanish 'Anti-Austerity' Protesters "Sick Of This System They Call Democracy" | Zero Hedge
Spanish ‘Anti-Austerity’ Protesters “Sick Of This System They Call Democracy” | Zero Hedge.
“I’m here to fight for my children’s future,” exclaims one father as Spaniards rallied in Madrid against poverty and EU-imposed austerity. As Reuters reports, the largely peaceful protest latermarred by violent clashes in which police fired rubber bullets. The so-called “Dignity Marches” brought hundreds of thousands to the capital with banners making it clear what their feelings about record 26% unemployment were – “Bread, jobs and housing for everyone” and “Corruption and robbery, Spain’s trademark.” One protester summed up the people’s views of the government,“I’m sick of this system they call democracy… I want things to change.”
The so-called “Dignity Marches” brought hundreds of thousands to the capital, according to estimates of Reuters witnesses. Travelling from all over Spain, they were protesting in support of more than 160 different causes, including jobs, housing, health, education and an end to poverty.
…Spaniards rallied in Madrid on Saturday against poverty and EU-imposed austerity in a largely peaceful protest later marred by violent clashes in which police fired rubber bullets.
Some protesters started to throw stones and bottles at the large numbers of riot police present and attacked cashpoints and hoardings. The police fired rubber bullets to disperse them, according to video footage seen by Reuters.
Central government representative Cristina Cifuentes said 19 protesters had been arrested and 50 police officers had been injured, one of them very badly, in the clashes.
Once again the issue is government corruption combined with austerity (or at least slowing growth in spending to be perfectly clear) – a combination that we have discussed numerous times tends to end in social unrest…
A housing bubble burst more than five years ago, forcing a 41-billion euro ($56 billion) bailout of Spain’s banks, squeezing homeowners and throwing millions out of work.
The government introduced public sector austerity to whittle down the deficit, provoking widespread anger amongst middle- and low-income families as dozens of cases of corruption in the ruling class are investigated by judges.
The people’s feelings were clear as the OECD says the economic crisis has hit Spain’s poor harder than in any other country in the euro region.
Banners urged the conservative government not to pay its international debts and to tackle Spain’s chronically high unemployment of 26 percent.
“Bread, jobs and housing for everyone“, read one banner, “Corruption and robbery, Spain’s trademark,” said another.
“I’m here to fight for my children’s future,” said Michael Nadeau, a 44-year-old entrepreneur.
“For those who are in power we’re just numbers. They value money more than they value people,” he said, shouting to be heard above the din of chanting, whistling and drumming.
“(I’m here because) I’m sick of this system they call democracy,” said Jose Luis Arteaga, a 58-year-old teacher whose wage has been cut 20 percent. “I want things to change.”
It seems that almost record low bond yields and high stock market levels did not appease the people of Spain either…Time for that IMG income inequality equalizing wealth redsitriburion it would seem…
Probably The Most Important Chart In The World | Zero Hedge
Probably The Most Important Chart In The World | Zero Hedge.
Having discussed the links between economic growth and energy resource constraints, and with the current geo-political fireworks as much about energy (costs, supply, and demand) as they are human rights, it would appear the following chart may well become the most-important indicator of future tensions…
Source: Goldman Sachs
This is not the first time we have discussed “self-sufficiency” – As none other than Bridgewater’s Ray Dalio noted in a slightly different context:
“self-sufficiency encourages productivity by tying the ability to spend to the need to produce,”“Societies in which individuals are more responsible for themselves grow more than those in which they are less responsible for themselves.” The nine-factor gauge of self-sufficiency provides some interesting insights into those nations most likely to experience above-average growth going-forward and those that are not; as European countries, notably Italy, France, Spain, and Belgium, all ranking at the very bottom on self-sufficiency.
And here we discussed, What If Nations Were Less Dependent On One Another?
The ability to survive without trade or aid from other nations, for example, is not the same as the ability to reap enormous profits or grow one’s economy without trade with other nations. In other words, ‘self-sufficiency’ in terms of survival does not necessarily imply prosperity, but it does imply freedom of action without dependency on foreign approval, capital, resources, and expertise.Freedom of action provided by independence/autarky also implies a pivotal reduction in vulnerability to foreign control of the cost and/or availability of essentials such as food and energy, and the resulting power of providers to blackmail or influence national priorities and policies.
…
Consider petroleum/fossil fuels as an example. Nations blessed with large reserves of fossil fuels are self-sufficient in terms of their own consumption, but the value of their resources on the international market generally leads to dependence on exports of oil/gas to fund the government, political elites, and general welfare. This dependence on the revenues derived from exporting oil/gas leads to what is known as the resource curse: The rest of the oil-exporting nation’s economy withers as capital and political favoritism concentrate on the revenues of exporting oil, and this distortion of the political order leads to cronyism, corruption, and misallocation of national wealth on a scale so vast that nations suffering from an abundance of marketable resources often decline into poverty and instability.
The other path to autarky is selecting and funding policies designed to directly increase self-sufficiency. One example might be Germany’s pursuit of alternative energy via state policies such as subsidies.
That policy-driven autarky requires trade-offs is apparent in Germany’s relative success in growing alternative energy production; the subsidies that have incentivized alternative energy production are now seen as costing more than the presumed gain in self-sufficiency, as fossil-fueled power generation is still needed as backup for fluctuating alt-energy production.
Though dependence on foreign energy has been lowered, Germany remains entirely dependent on its foreign energy suppliers, and as costs of that energy rise, Germany’s position as a competitive industrial powerhouse is being threatened: Industrial production is moving out of Germany to locales with lower energy costs, including the U.S.
The increase in domestic energy production was intended to reduce the vulnerability implicit in dependence on foreign energy providers, yet the increase in domestic energy production has not yet reached the critical threshold where vulnerability to price shocks has been significantly reduced.
…
America’s ability to project power and maintain its freedom of action both presume a network of diplomatic, military, and economic alliances and trading relationships which have (not coincidentally) fueled American corporation’s unprecedented profits.
The recent past has created an assumption that the U.S. can only prosper if it imports oil, goods, and services on a vast scale.
Probably The Most Important Chart In The World | Zero Hedge
Probably The Most Important Chart In The World | Zero Hedge.
Having discussed the links between economic growth and energy resource constraints, and with the current geo-political fireworks as much about energy (costs, supply, and demand) as they are human rights, it would appear the following chart may well become the most-important indicator of future tensions…
Source: Goldman Sachs
This is not the first time we have discussed “self-sufficiency” – As none other than Bridgewater’s Ray Dalio noted in a slightly different context:
“self-sufficiency encourages productivity by tying the ability to spend to the need to produce,”“Societies in which individuals are more responsible for themselves grow more than those in which they are less responsible for themselves.” The nine-factor gauge of self-sufficiency provides some interesting insights into those nations most likely to experience above-average growth going-forward and those that are not; as European countries, notably Italy, France, Spain, and Belgium, all ranking at the very bottom on self-sufficiency.
And here we discussed, What If Nations Were Less Dependent On One Another?
The ability to survive without trade or aid from other nations, for example, is not the same as the ability to reap enormous profits or grow one’s economy without trade with other nations. In other words, ‘self-sufficiency’ in terms of survival does not necessarily imply prosperity, but it does imply freedom of action without dependency on foreign approval, capital, resources, and expertise.Freedom of action provided by independence/autarky also implies a pivotal reduction in vulnerability to foreign control of the cost and/or availability of essentials such as food and energy, and the resulting power of providers to blackmail or influence national priorities and policies.
…
Consider petroleum/fossil fuels as an example. Nations blessed with large reserves of fossil fuels are self-sufficient in terms of their own consumption, but the value of their resources on the international market generally leads to dependence on exports of oil/gas to fund the government, political elites, and general welfare. This dependence on the revenues derived from exporting oil/gas leads to what is known as the resource curse: The rest of the oil-exporting nation’s economy withers as capital and political favoritism concentrate on the revenues of exporting oil, and this distortion of the political order leads to cronyism, corruption, and misallocation of national wealth on a scale so vast that nations suffering from an abundance of marketable resources often decline into poverty and instability.
The other path to autarky is selecting and funding policies designed to directly increase self-sufficiency. One example might be Germany’s pursuit of alternative energy via state policies such as subsidies.
That policy-driven autarky requires trade-offs is apparent in Germany’s relative success in growing alternative energy production; the subsidies that have incentivized alternative energy production are now seen as costing more than the presumed gain in self-sufficiency, as fossil-fueled power generation is still needed as backup for fluctuating alt-energy production.
Though dependence on foreign energy has been lowered, Germany remains entirely dependent on its foreign energy suppliers, and as costs of that energy rise, Germany’s position as a competitive industrial powerhouse is being threatened: Industrial production is moving out of Germany to locales with lower energy costs, including the U.S.
The increase in domestic energy production was intended to reduce the vulnerability implicit in dependence on foreign energy providers, yet the increase in domestic energy production has not yet reached the critical threshold where vulnerability to price shocks has been significantly reduced.
…
America’s ability to project power and maintain its freedom of action both presume a network of diplomatic, military, and economic alliances and trading relationships which have (not coincidentally) fueled American corporation’s unprecedented profits.
The recent past has created an assumption that the U.S. can only prosper if it imports oil, goods, and services on a vast scale.
Another Escalation: US Freezes Diplomatic Relations With Syria, Orders Non-US Personnel To Leave Country | Zero Hedge
Putin 2 – Obama 0, which means it is time to go back to the one place where it all started last year, and where Putin had his most resounding victory over the US foreign policy apparatus (at least until the Ukraine, where we trampled not only over Obama’s red line… again… but where nobody quite explained the “costs” to the ex-KGB leader): Syria. Sure enough, with the US unable to respond in Crimea, has decided to take its fight back to where Europe’s natgas reliance on Gazprom product was first truly exposed.
BREAKING: US freezes diplomatic, consular relations with Syria; Orders non-US personnel to leave country.
— The Associated Press (@AP) March 18, 2014
The US can order non-US personnel around? More from Reuters:
- U.S.
IMMEDIATELY SUSPENDS OPERATIONS OF SYRIAN EMBASSY IN WASHINGTON, AS
WELL AS HONORARY CONSULATES IN MICHIGAN AND TEXAS – STATE DEPARTMENT - U.S.
SPECIAL ENVOY FOR SYRIA SAYS ‘UNACCEPTABLE’ FOR INDIVIDUALS APPOINTED
BY ASSAD REGIME TO CONDUCT DIPLOMATIC, CONSULAR OPERATIONS IN U.S.
Regardless, if the bloodless Russian annexation of Crimea wasn’t enough to push the S&P to new all time highs, this surely will.
Another Escalation: US Freezes Diplomatic Relations With Syria, Orders Non-US Personnel To Leave Country | Zero Hedge
Putin 2 – Obama 0, which means it is time to go back to the one place where it all started last year, and where Putin had his most resounding victory over the US foreign policy apparatus (at least until the Ukraine, where we trampled not only over Obama’s red line… again… but where nobody quite explained the “costs” to the ex-KGB leader): Syria. Sure enough, with the US unable to respond in Crimea, has decided to take its fight back to where Europe’s natgas reliance on Gazprom product was first truly exposed.
BREAKING: US freezes diplomatic, consular relations with Syria; Orders non-US personnel to leave country.
— The Associated Press (@AP) March 18, 2014
The US can order non-US personnel around? More from Reuters:
- U.S.
IMMEDIATELY SUSPENDS OPERATIONS OF SYRIAN EMBASSY IN WASHINGTON, AS
WELL AS HONORARY CONSULATES IN MICHIGAN AND TEXAS – STATE DEPARTMENT - U.S.
SPECIAL ENVOY FOR SYRIA SAYS ‘UNACCEPTABLE’ FOR INDIVIDUALS APPOINTED
BY ASSAD REGIME TO CONDUCT DIPLOMATIC, CONSULAR OPERATIONS IN U.S.
Regardless, if the bloodless Russian annexation of Crimea wasn’t enough to push the S&P to new all time highs, this surely will.
Which European Countries Will Suffer The Most If Russia Turns Off The Gas | Zero Hedge
Which European Countries Will Suffer The Most If Russia Turns Off The Gas | Zero Hedge.
With the Sunday Crimean referendum seemingly unstoppable now, its outcome certain, it is set to unleash a chain of events that is not entirely predictable but is at best, ominous, as it will involve the launch of trade, economic and financial sanctions against Russia (despite China’s stern disapproval), which will lead to a “symmetric” response in kind by Moscow. And in a worst case escalation scenario, should game theory completely collapse and everyone starts defecting from a cooperative equilibrium state, the first thing to go will be European gas exports from Russia, anywhere from one day to indefinitely. So which European countries are most exposed to the whims of Gazprom? The following map from the WSJ, shows just how reliant on Russian gas exports most European countries are.
One wonders just how “stern” any sanctions these countries support and enforce against Russia will truly be. Then again, as the WSJ reports, Europe somehow believes that despite its massive reliance on Ukraine for energy, it can weather a storm:
Mr. Oettinger says Europe is now in a stronger position to withstand possible disruptions in supplies, thanks in part to a mild winter, more storage capacity and pipeline infrastructure that allows more gas to flow from west to east.But he has also said that the EU should reach out to other gas exporters and build more terminals for liquefied natural gas, and that countries should also start exploratory work on shale gas.
“The Russians are now more dependent on our money than we are on their gas,” said Mr. Wieczorkiewicz, adding that around half of Russia’s revenues are derived from oil and gas sales. “The EU could also explore ties to Norway, Algeria and Qatar as alternative suppliers, increase the use of coal and import LNG.”
But in the short term, others argue that the EU is short of options if it wants to use energy as a tool against Moscow. “Russia remains the largest exporter of gas to the EU; there’s no way of [quickly] sourcing those amounts of gas elsewhere,” said Simon Pirani of the Oxford Institute for Energy Studies.
“Europe has to ask itself how important is the economic relationship with Russia, which provides that cheap energy, and how important is the political protest that it wants to make” about Crimea, he said.
So who wins in the end: the provider of the commodity, or the buyer who pays with infinitely dilutable fiat, especially if any further escalation by the west against Russia will merely bring China and Russia together even closer. Somehow we think our money is on the KGB spy instead of the clueless and insolvent European bureaucrats.
Which European Countries Will Suffer The Most If Russia Turns Off The Gas | Zero Hedge
Which European Countries Will Suffer The Most If Russia Turns Off The Gas | Zero Hedge.
With the Sunday Crimean referendum seemingly unstoppable now, its outcome certain, it is set to unleash a chain of events that is not entirely predictable but is at best, ominous, as it will involve the launch of trade, economic and financial sanctions against Russia (despite China’s stern disapproval), which will lead to a “symmetric” response in kind by Moscow. And in a worst case escalation scenario, should game theory completely collapse and everyone starts defecting from a cooperative equilibrium state, the first thing to go will be European gas exports from Russia, anywhere from one day to indefinitely. So which European countries are most exposed to the whims of Gazprom? The following map from the WSJ, shows just how reliant on Russian gas exports most European countries are.
One wonders just how “stern” any sanctions these countries support and enforce against Russia will truly be. Then again, as the WSJ reports, Europe somehow believes that despite its massive reliance on Ukraine for energy, it can weather a storm:
Mr. Oettinger says Europe is now in a stronger position to withstand possible disruptions in supplies, thanks in part to a mild winter, more storage capacity and pipeline infrastructure that allows more gas to flow from west to east.But he has also said that the EU should reach out to other gas exporters and build more terminals for liquefied natural gas, and that countries should also start exploratory work on shale gas.
“The Russians are now more dependent on our money than we are on their gas,” said Mr. Wieczorkiewicz, adding that around half of Russia’s revenues are derived from oil and gas sales. “The EU could also explore ties to Norway, Algeria and Qatar as alternative suppliers, increase the use of coal and import LNG.”
But in the short term, others argue that the EU is short of options if it wants to use energy as a tool against Moscow. “Russia remains the largest exporter of gas to the EU; there’s no way of [quickly] sourcing those amounts of gas elsewhere,” said Simon Pirani of the Oxford Institute for Energy Studies.
“Europe has to ask itself how important is the economic relationship with Russia, which provides that cheap energy, and how important is the political protest that it wants to make” about Crimea, he said.
So who wins in the end: the provider of the commodity, or the buyer who pays with infinitely dilutable fiat, especially if any further escalation by the west against Russia will merely bring China and Russia together even closer. Somehow we think our money is on the KGB spy instead of the clueless and insolvent European bureaucrats.
Iran, Russia Ruffle US Feathers With Oil-Swap Deal | Zero Hedge
Iran, Russia Ruffle US Feathers With Oil-Swap Deal | Zero Hedge.
This morning’s apparent U-turn in US-Iran relations – when the US demanded the UN rescind Iran’s invite to the Syrian peace conference having somewhat instigated their invitation in the first place – is a little confusing for some. However, as OilPrice’s Joao Peixe points out, reports are emerging that Iran and Russia are in talks about a potential $1.5 billion oil-for-goods swap that is sure to upset the powers that be in Washington.
Submitted by Joao Peixe via OilPrice.com,
Reports are emerging that Iran and Russia are in talks about a potential $1.5 billion oil-for-goods swap that could boost Iranian oil exports, prompting harsh responses from Washington, which says such a deal could trigger new US sanctions.
So far, talks are progressing to the point that Russia could purchase up to 500,000 barrels a day of Iranian oil in exchange for Russian equipment and goods, according to Reuters.
“We are concerned about these reports and Secretary (of State John) Kerry directly expressed this concern with (Russian) Foreign Minister (Sergei) Lavrov… If the reports are true, such a deal would raise serious concerns as it would be inconsistent with the terms of the P5+1 agreement with Iran and could potentially trigger US sanctions,” Caitlin Hayden, spokeswoman for the White House National Security Council, told Reuters.
Russian purchases of 500,000 bpd of Iranian crude would lift Iran’s oil exports by 50% and infuse the struggling economy with some $1.5 billion a month, some sources say.
Since sanctions were slapped on Iran in July 2012, exports have fallen by half and Iran is losing up to $5 billion per moth is revenues.
In the meantime, a nuclear agreement reached in November with Iran and world powers is in the process of being finalized, and the news of the potential Russian-Iranian oil swap deal plays to the hands of Iran hawks in Washington who are keen to seen the November agreement collapse.
The November agreement is a six-month deal to lift some trade sanctions if Tehran curtailed its nuclear program. Technical talks on the agreement began last week.
Under the terms of the tentative November nuclear agreement, Iran will be allowed to export only 1 million barrels of oil per day.
In mid-December, Iranian oil officials indicated that they hoped to resume previous production and export levels and would hold talks with international companies to that end.
This announcement sparked an immediate reaction from US Congress, which has threatened oil companies with “severe financial penalties” if they resume business with Iran “prematurely” following the six-month agreement reached in Geneva.
There are plenty of figures in Congress—Republican and Democratic alike—who are opposed to the deal. The key “Iran hawk” in US Congress, South Carolina Republican Lindsey Graham, has described the deal as “so far away from what the end game should look like”, which should be to “stop enrichment”.
The opposition in this case believes any talk between Tehran and Western oil companies is premature because they are convinced that we won’t see a comprehensive resolution after the six-month period, and that sanctions will be laid on stronger than ever before.
Yet again, it would seem, Iran is another proxy pissing match between the US and Russia… and remember, nothing lasts forever...