AS THE PERIPHERY SINKS, THE CORE FOLLOWS….

"Now this is starting to get really interesting.   Today’s flash PMI in Europe was a disaster.  Not only are the periphery countries predictably weak, but we’re seeing the weakness seep into the core.  The following from the Markit report summarizes the situation:

“The Markit Eurozone PMI Composite Output Index fell to a five-month low in April, according to the preliminary ‘flash’ reading which is based on around 85% of usual monthly replies. The index fell
for the third month in a row to 47.4, down from 49.1 in March, to signal a faster rate of decline of private sector economic activity. Output has fallen seven times in the past eight months.

Output fell at the fastest rates for five months in both manufacturing and services, with the former
seeing the steeper rate of decline.

By country, growth slowed to only a very modest pace in Germany, showing the weakest expansion
in the current five-month sequence as weak service sector growth was offset by a sharp decline in manufacturing output. France meanwhile saw output fall for the second month in a row, with the
rate of decline accelerating to the fastest since October. Falling manufacturing output was
accompanied by a steep deterioration in service sector activity.

at  http://pragcap.com/as-the-periphery-sinks-the-core-follows

New "Temporary" Border Controls a Vote of No Confidence in Europe; In France, Old Protectionist Idea Reawakened; Disastrous Global Trade Wars Coming Up

"New border controls are another sign of increasing protectionism in European states. It was not supposed to be this way, yet these controls represent a Vote of No Confidence in Europe

Germany and France are serious this time. During next week's meeting of European Union interior ministers, the two countries plan to start a discussion about reintroducing national border controls within the Schengen zone. According to the German daily Süddeutsche Zeitung, German Interior Minister Hans-Peter Friedrich and his French counterpart, Claude Guéant, have formulated a letter to their colleagues in which they call for governments to once again be allowed to control their borders as "an ultima ratio" -- that is, measure of last resort -- "and for a limited period of time." They reportedly go on to recommend 30-days for the period.

Of course, using catchphrases like "ultima ratio" and "limited period of time" is supposed to make such policies sound reasonable and proportionate. After all, the reasoning goes, it's just a few occasional border controls for up to 30 days. What's the big deal, right?

But the proposal is far from harmless and would throw Europe back decades. Since 1995, the citizens of Schengen-zone countries have gotten used to freely traveling within Continental Europe. Next to the euro common currency, free movement is probably the strongest symbol of European unity. Indeed, for many people, it's what makes this abstract idea tangible in the first place..."

at http://globaleconomicanalysis.blogspot.com/2012/04/new-temporary-border-controls-a-vote-of.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29

The True French Debt To GDP: 146%

"In my continuing attempt to debunk what the European Union presents as facts; I turn my attention to France. I have already given you the correct debt to GDP ratios for Spain, Italy, Portugal and Germany which follows the exact principles of what any corporation in America or Europe would be mandated to report or suffer the slings and arrows of being held accountable for Fraud. I include contingent liabilities, derivatives, promises to pay, various guarantees and all of the normal accounting practices to be considered on any balance sheet except the sovereign nations of Europe. In the end, of course, it is your decision but at least we can begin any consideration based upon the facts and not based upon a fictitious account. Again, I divide up the liabilities into two categories, their national obligations and their European obligations; the European Union, the European Central Bank and finally for the other European institutions for which they bear some burden. Then I add it all up, divide by their GDP and we arrive at a factual accounting. Nothing complicated here except sleuthing about to get the data which is no easy task as it is hidden in various nooks and crannies.

How many Europeans does it take to screw in a light bulb?

One to hold the bulb and the rest to provide enough mis-information to make the economic world spin.

France

The Official French GDP $2.774 trillion

FRANCE’S NATIONAL DEBT

Admitted Sovereign Debt $2.261 trillion

Loans to the Nation $214.9 billion

Admitted Bank Guaranteed Debt $479 billion

Dexia Guarantee $55.48 billion

Total National Debt $3.010 trillion

FRANCE’S EUROPEAN DEBT

France’s Liabilities at the ECB $569 billion

France’s cost for the EU Budget $23.2 billion

France’s Liabilities for the Stabilization Funds $110 billion

France’s Liabilities for the Macro Fin Ass. Fund $203 billion

France’s Guarantee of the EIB Debt $137.6 billion

France’s Total European Debt $1.043 trillion

France’s National and European Debt $4.053 trillion

France’s Official Debt to GDP Ratio 86.1%

France’s ACTUAL Debt to GDP Ratio 146%


“It is dangerous to be right in matters on which the established authorities are wrong.”

-Voltaire

at http://www.zerohedge.com/news/true-french-debt-gdp-146


READ MORE

Massive EU Weapons Sales to Saudi Arabia Contribute to Fuelling International Aggression and Terrorism in the Middle East

"According to the German magazine Der Spiegel, the European Union is the most important weapons exporter to Saudi Arabia. Of all EU member states, France comes first with Euro2168.6 million of exports in 2010. Italy is in second place with Euro435.3 million, before Great Britain, with Euro328.8 million.

Source: Der Spiegel

By arming the Saudi kingdom, the member states of the European Union are breaking prevailing EU rules regulating the exports of weapons, notes Der Spiegel. The magazine quotes the relevant section of the legislation on Non-Proliferation and Disarmament titled Security-related export controls II - Military equipment, which states:

[...] Member States have once again shown their determination to prevent the export of military technology and equipment which might be used for undesirable purposes such as internal repression or international aggression or contribute to regional instability.

It is worth noting, in this regard, that a large quantity of the weapons sold to Saudi Arabia by EU member states has ended up in the hands of Libyan and Syrian “rebels" including terrorists, thus largely contributing to fuelling international aggression and regional instability. According to Finian Cunningham: "Saudi Arabia and Qatar in particular were also instrumental in driving events in Syria and Libya, providing financial support, weapons, covert fighters and strident diplomatic backing for the self-styled “transitional councils”.

Der Spiegel confirms that Saudi Arabia participated in the violent repression of popular revolts in Bahrain, an issue which was largely ignored by the Western mainstream media.

While the European Union member states, especially France, have expressed their "concern for human rights" in Syria and Libya, they have turned a blind eye to Saudi Arabia’s contempt for those same human rights. The EU member states are the main weapons providers of the Al Saud Monarchy, one of the World's most repressive regimes, serving the strategic interests of the US and NATO in the Middle East. Moreover, Saudi Arabia has also channeled weapons and financial support to Al Qaeda affiliated brigades in the Middle East, Asia and North Africa.  

The German magazine notes that the global weapons trade is booming, and “has increased by 24 percent over the last five years -- despite efforts to curb it.” (EU Nations Sell the Most Arms to Saudi Arabia, Der Spiegel, March 19, 2012.)

In a bitter irony, the world’s top weapons traders (US, Russia, Britain, France, China) are the countries designated under the UN Charter to "preserve peace", namely as permanent members of the UN Security Council. (See Richard F. Grimmett, CRS Report for Congress; Conventional Arms Transfers to Developing Nations, 2003-2010 , September 22, 2011.)

In 2010, the “war business” reached 1.6 trillion dollars according to the Stockholm International Peace Research Institute."

at http://www.globalresearch.ca/index.php?context=viewArticle&code=GLO20120321&articleId=29881

Germany's Geopolitical Strategy

"...Germany's current strategy is to preserve the European Union and its relationship with France while drawing Russia closer into Europe. The difficulty of this strategy is that Germany's trade policies are difficult for other European countries to manage, including France. If Germany faces an impossible situation with the European Union, the second strategic option would be a three-way alliance, with a modified European Union or perhaps outside of the EU structure. If France decides it has other interests, such as its idea of a Mediterranean Union, then a German-Russian relationship becomes a real possibility.
A German-Russian relationship would have the potential to tilt the balance of power in the world. The United States is currently the dominant power, but the combination of German technology and Russian resources -- an idea dreamt of by many in the past -- would become a challenge on a global basis. Of course, there are bad memories on both sides, and trust in the deepest sense would be hard to come by. But although alliances rely on trust, it does not necessarily have to be deep-seated trust.
Germany's strategy, therefore, is still locked in the EU paradigm. However, if the EU paradigm becomes unsupportable, then other strategies will have to be found. The Russo-German relationship already exists and is deepening. Germany thinks of it in the context of the European Union, but if the European Union weakens, Russia becomes Germany's natural alternative."

at http://www.marketoracle.co.uk/Article33581.html