• Category Archives Economy
  • Brexit – UK referendum to leave the EU

    Dear all out there,

    Today we may have witnessed an historical day, comparable maybe only to the fall of the Berlin Wall in 1989 or 9/11. I stated both these events on purpose, as we do not yet know if this will turn out to be an historical good or an historical bad day in the history books of the future. My guess: it will be more comparable to 9/11 than to the Berlin Wall. Already, a lot of right-wing leaders within the EU announced that similar referendums should be held in their countries, and an independent Scotland willing to join the EU will not be able to make up on all the future events that may have triggered by the UK vote.

    Let me get things straight: I adore the UK people for such a bold move, and it is their good right to vote for such a change. Nevertheless I consider the UK as an important part of the EU. A EU without the UK loses a lot of strength, as does the UK, if it comes to that. I hope, the future will prove me wrong, but I see this as a bad thing for both EU and UK. As a big fan of the UK as a whole (except, maybe, for the Irish, you will nowhere in Europe find people more friendly, welcoming and open, that’s why this vote especially shocked me), I am afraid there will be sorrowful days ahead of us all.

    So, I wish you all the best in the coming days, also to David Cameron, even if he’s probably to blame for playing poker not only with his country, but with the whole continent, if not the world as a whole, just for the sake of securing another 4 years in the government.

    BTW: Just as a warning for people in other countries falling for big fake people asking their people to leave the EU: https://www.youtube.com/watch?v=B0ktojE6WQA


  • TTIP – Or: The miracle of mining money without losers

    Hello everybody,

    Today’s topic is the Transatlantic Trade and Investment Partnership (short: TTIP): Basically, it is an agreement between the USA and the EU regarding lifting some obstacles that appeared when selling from the USA to the EU or vice versa. On the whole, one should think that this is a good idea. Well, maybe it is, who knows? Nevertheless, there are some points, that made me thinking:

    • Politicians (even the ones in the EU, that we did not actually vote for) are working for the people. So I do not understand, why these negotiations have to be so secretive, without openly dealing with it. What do they have to hide?
    • Investor-state dispute settlement: Well, so we do not want genetically manipulated foods in Austria (thanks Monsanto, we actually do not want to buy new seed every year, because we are not allowed – if their goods are still able to reproduce anyway – to use the seeds to sow it next year without buying licences). Nevertheless, there is a chance, that they will be able to force states to allow them selling their products.

    And the biggest point, that does in my opinion need a special attention: Money is not created out of nothing. There is never such kind of agreement, where everybody wins (not even in the EU, see the countries with weaker production). If it is easier to export from the USA to the EU, products where the EU is less productive (so less competitive, because more expensive) will vanish from our markets. So, if everybody would win, where would the money to buy the new products come from? If local products vanish, also the people producing them will lose their jobs and have less money. And one thing is for sure: The countries in the EU have a very good (but expensive) social security system, other than the USA.

    So, where will the production of goods be more expensive? Definitely in the EU. Do we invest in education in the EU currently? Not as much as we should, because we are fighting the crisis of 2008 and there is not enough money to concentrate on small topics like “will our people be competetive on the market regarding education?”. Well, so where can we win in such an agreement? I am afraid, that the answer is nowhere – such an agreement does definitely lead to people living in the EU being losers of globalisation in the long run. Our only chance would be to invest in people, but we are far behind Asia and the USA if it comes to the education quality.