Moody's approaches reality in Spain

Anybody looking at Spain, its housing bust, its unemployment, its membership of a potentially tyrannical and certainly dis-functional trading block called the EU, would immediately realize that unless all those basic facts are reversed there is no hope for the country nor the economic welfare of its people.

Yet last night's multiple downgrade of its banks by Moody's, rated only the bonds of Bankia as junk. Read here. 


Mr. de Guindos, however , yesterday accepted the suicidal interdependence of the Spanish banks and Spanish state, read an earlier comment on that aspect from last April from here, aptly titled Hazardous Tango.


Here lie the real political risks that makes all such banks unsuitable for investment. Banks domiciled in Spain, even those having strong overseas assets, are subject to the demands of the Spanish State and soon perhaps an authoritarian, anonymously EU controlled, non-democratically accountable Regulator, who could sequestrate assets at will, or upon a mere whim or unsubstantiated market rumour.


If Britain stays within the EU and goes along with such activities and practices within the Euro Zone, then the suspicion will grow that such financial tyranny could eventually extend to London, that then would be the greatest danger for the Corporation of the City, putting the risks of giving the people a say in their country's future by means of an EU referendum (see my tweet of last evening, on this,) into utter insignificance! 


If Cameron goes along with whatever occurs in Brussels from this Thursday and on into next weekend, that is when a capital flight could begin from London, then Britain truly will be tied to Europe forever and Europe will be a tyranny as defined by Karl Popper, where the rulers may only be replaced by bloodshed.

Libdem leader in EU Parliament threatens to crush the City.

Guy Verhofstadt, leader of the Liberals in the EU Parliament, and thus the spokesman for Nick Clegg's MEPs, the man who refused to attend Parliament yesterday while the PM explained the EU policy Clegg himself helped prepare and sign off on, this morning went on the EU controlled BBC Radio 4 Toady programme and issued a series of veiled threats against the City of London, backing up the attack launched by the patently absurd Olli Rehn last evening, see here and my post of yesterday evening beneath this.

If EU Commissioners and Continental Politicians are really seeking to drive Britain out of the EU, presumably to perhaps distract attention from their self-created economic meltdown, they certainly seem to be going the right way about it.

The link to Verhofstadt's BBC comments will be placed here when available is here.

More on the EU "Dagger at the City" from yesterday in the Commons.

Last evening I quoted and provided links to part pf the debate in Parliament on the attempts to destroy the City of London by the EU, resulting in the re-distribution of some 15 to 20 per cent of Britain's entire tax revenues amongst the other é- members of the EU. The Hansard link is repeated here with these additioonal extracts which for me are equally as alarming as those I quoted late last evening:

Graham Stringer: The hon. Gentleman is making the powerful case, with which I agree, that this is malevolent legislation that is directed at undermining the City of London. I suspect he will agree with me that the Government should use the fundamental crisis at the heart of the European Union to be as brutal and as determined as possible in bringing back as many powers as they can, because the European Union is not a benevolent body when it comes to the UK’s interests.

Mr Cash: I very much agree with the hon. Gentleman. The more I have heard from him over the past few years, the more I have admired his determination to speak the truth. That is the position. This is not a party game; this is serious and it is deadly. This move is determined and deliberate. That is what people need to know.

Roland Vaubel, the famous economist from Mannheim university, talks about the use of the qualified majority voting system in the Council of Ministers as a form of “regulatory collusion”, and mentions the strategy of deliberately raising rivals’ costs. Particular groups of countries—there are no prizes for guessing which—enter into arrangements behind the scenes, and vote accordingly. Both France and Germany use that system to their advantage, and as I said in the Financial Times the other day, we are being outmanoeuvred.

Despite all the time, money and effort being put into the Vickers report, there are, as the shadow Minister made clear, serious worries that Vickers may yet be undermined by the very proposals that we are discussing. The problem goes much further, but I do not need to enlarge upon all that any more.

EU Treaty Article 66 & Surging SE England house price rises.

Last night in Parliament, as may be seen at 6 minutes 15 seconds into the video linked from the posting immediately below, the spectre of the EU Council having the right to ban movements of capital to countries outside the EU, was raised by Gisela Stuart MP.

Such a ban would deal a death blow to the City of London, and the mere fact of the existence of such draconian powers is clear evidence of the treason that has been underway in the Palace of Westminster over many years.

Happily the authority of the European Council, with its ludicrous Gollum-like figurehead Van Rompuy in charge, is rapidly losing the small shreds of authority it once may have commanded. The farce of Jean-Claude Juncker's weekend Ecofin Euro Group outcome, and the horrendous debts incurred by Jean-Claude Trichet's misgovernance of the ECB, all point to an early end to the dagger that has for long been pointed at the heart of the City of London from Frankfurt.

One is tempted to wonder if the rise in property prices, as reported by Bloomberg in this link, now being experienced and anticipated in London and the South East, is a sign of a coming re-inforcement in the world role of the City.

The interjection by Boris Johnson, Mayor of London, into the debate over a Greek default, could well be another sign of the shift that may be taking place; Westminster, having ceded its law-makng powers to Brussels, may find them, once reclaimable, eventually coming to rest elsewhere!

If the EU Council wished to ensure a quick and final end to the EU fiasco, trying to activate Aricle 66 with the City of London in their sights, could perhaps find no quicker means to bring a halt to the Euro's death struggles! Surely such an event would finally end any further monetary transfers to the EU, or would Cameron, Clegg, Osborne and Hague continue to consider only their own personal finances which they clearly hope to promote through their ongoing subservience to a clearly collapsing EU, by their ruthless trampling over the economic well-being of the people of Britain.

EU Commissioner Barnier refuses to appear before MPs

The influential Frenchman charged with dismantling the worldwide influence, capabilities and wealth creation of the City of London has refused to appear before MPs in Westminster to explain the new regulatory bodies and their powers which will begin work on the foregoing objectives from the beginning of next year. Perhaps now MPs and Parliament will begin to grasp the full extent of the disaster they have delivered to our once Sovereign nation and vote to begin reversing this calamity. A report is in the Daily Telegraph, linked here. Background from the Commons here. The following quote is from the former City Minister in 2009 reported in the Guardian, linked here:

Myners said: "What we could not live with is an agreement at a European level that would have had domestic fiscal consequences for domestic governments.

"That is why sSupervision of individual institutions must remain a matter for national supervisors. We will strongly defend this principle at the forthcoming European Council meeting."

Barnier's 12th October 2010 speech to the World Federation of Exchanges, only available from his Europa website in French, which says it all in terms of the ideas of the Commissioner and the relevance the EU will in future have on a globalised world's markets. Trying to get the information with a trick I sometimes use when trying to keep English speakers aware of the underhand activities of the evil EU, ie deleting "fr" in the url of pdf documents with "en" only achieves the following result with this document:

The information you requested is not available in the language of your choice. To access the information in one of the available languages, please select one of the following links

So this is how the City of London, Europe's main financial hub, is to be kept abreast of the thinking of the unelected official who has ultimate control of those who will regulate the City.