EU DEBT CRISIS UPDATE 20 SEPT. 2012
Well participated and thorough discussions about the EU and the financial crisis of 2008 could be found on WAIS in the years 2001-2002 and Sept. 2008. Ireland has always been considered unique by EU standards. However in my opinion, then as now, Ireland is not totally immune from this contagion.
“It seems the trend of moving overseas is not limited to billionaires like Facebook co-founder Eduardo Saverin. In the story below, big American corporations are moving to the UK to be close to their clients, be more competitive globally and save on taxes. But I think the coming fiscal cliff is another big reason to move overseas.
If the government’s no. 1 customers are the rich and big corporations because they pay taxes and generate jobs, then the government is not doing a good job if it is losing its best clients.
This is what happens when no one lobbies for everyone. This is the problem when Congress enacts laws that do not directly affect their personal bottom line.”
More US Firms Move Abroad (Bienvenido Macario, USA)
Thu, Aug 30, 2012 at 5:24 PM
https://waisworld.org/go.jsp?id=02a&objectType=post&o=71825&objectTypeId=64600&topicId=196
Below is the forecast as posted on WAIS re: World Economy -> More US Firms Move Abroad; on the “Fiscal Cliff” on 09/03/12.
“For Ireland 12.5% tax of something is better than 35% or as Romney proposed 25%, of nothing. For businesses it is no use submitting a proposal or bidding for a project knowing your price is too high, all things equal. Yet what is the use of slashing your price and end up working break-even or at a loss?
Instead of looking outward and examine how the government could help US firms compete overseas, Congress passed a law in 2004 to discourage them from moving their business abroad. They were simply thinking of getting a share from U.S. firms’ profits without contributing anything to the equation.
It did not occur to Congress in 2004 that the 35% corporate tax, in way, contributes to a strong dollar.
Then there is the EU debt crisis, which I believe will officially put Europe in recession by @September 20 or 21, 2012. *One way or another, the US economy will be affected by a European recession. ECB Pres. Mario Draghi did not attend the annual meeting at Jackson Hole.
JE comments: How much has ^Ireland’s 12.5% corporate tax rate helped since 2008? For example, have many corporations relocated there since the crisis began? Nobody has the stomach for a “fiscal cliff”–I thought we already fell off one. And aren’t several nations of Europe already in recession–Spain, Portugal, Greece, Italy… and Ireland?
Note that Bienvenido Macario’s “cliff date” for Europe is not far away: 21 September”
From: World Economy -> More US Firms Move Abroad; on the “Fiscal Cliff” (Bienvenido Macario, USA) Sept. 03, 2012 05:13am
http://waisworld.org/go.jsp?id=02a&objectType=post&o=71880&objectTypeId=64641&topicId=196
Today’s news Sept. 20, 2012
^ Irish Economy Skirts Recession
By EAMON QUINN And PAUL HANNON
EUROPE NEWS September 20, 2012, 9:29 a.m. ET
http://online.wsj.com/article/SB10000872396390444032404578007951061647888.html?mod=googlenews_wsj
DUBLIN—The Irish economy avoided slipping into recession by the narrowest possible margin in the second quarter, but shrinking domestic demand canceled out a rise in exports, raising new questions about whether the country can meet its budget targets for next year.
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@Global slowdown predicted as China records 11th month of recession
Larry Elliott Economics editor – The Guardian, Thursday 20 September 2012 13.33 EDT
http://www.guardian.co.uk/business/2012/sep/20/global-slowdown-predicted
The prospect of a synchronised recession across the global economy loomed larger on Thursday after news that China’s factory output shrank for an 11th straight month, Europe’s recession intensified and the manufacturing sector in the US had its weakest quarter in three years.
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*U.S. factories struggle, Europe and China slump
By Steven C. Johnson and Andy Bruce | Reuters – 8 hrs ago Thursday, September 20, 2012
http://news.yahoo.com/u-factories-struggle-europe-china-slump-151102737–business.html?_esi=1
NEW YORK (Reuters) – U.S. manufacturing suffered its weakest quarter in three years and conditions at European businesses worsened, surveys showed on Thursday, while China’s economy continued to lose momentum.
The data shed more light on the difficult task facing global policymakers, particularly in Europe and the United States, who have tried to increase growth with aggressive monetary stimulus.
The U.S. manufacturing sector closed out its worst three months in September since the third quarter of 2009, according to financial information firm Markit. Export orders fell for a fourth month running as demand from Europe and Asia faded, with September’s slide the steepest in nearly a year.
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@Eurozone in Deepening Recession, Survey Finds
By PAN PYLAS Associated Press – LONDON September 20, 2012 (AP)
Europe appears headed for a deepening economic recession despite a recent easing in market concerns over the three-year debt crisis, a closely-watched survey found Thursday.
Financial data company Markit said its purchasing managers’ index — a gauge of business activity — for the 17-country eurozone fell to 45.9 in September from 46.3 the previous month.
The decline was a surprise as the consensus in the markets was for a modest improvement. Anything below 50 indicates a contraction in economic activity.
September’s rate was the lowest in over three years and came despite an easing in the rate of economic contraction in Germany, the eurozone’s largest economy.
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I’m sure there is something I can contribute looking for solutions. However a recovery would simply maintain the status quo in other parts of the world and may not help regain control of certain ancestral lands to the rightful owner. Let me reiterate. I seek Native American status, a Philippines freely associated with the U.K. or the U.S. , among others.
Ned Macario
Lemuria
Ancora Imparo
IGA