06-03 15:00: RANsquawk Today's Trading Edge
Submitted by Michael Shedlock via MishTalk.com,
British citizens seeking yet another reason to vote Brexit, have one in spades.
The roots of this reason go back to last year when European Commission president Jean Claude Juncker hatched a 3-year plan to leverage €20 billion in seed capital to produce a €300 billion gain in Eurozone investment.
As one might expected, the results are nonexistent even though Juncker has already used up the €20 billion in seed capital.
Juncker now wants to up the seed capital, make the plan permanent, and extend the plan outside the EU to immigration zones such as Syria and Africa!
Here’s the kicker. The UK ponied up the biggest share of this monstrous boondoggle so far.
UK Makes the Biggest Contribution to the Juncker Plan
Flashback July 17, 2015: EurActiv reports UK Makes the Biggest Contribution to the Juncker Plan.
The UK may be a Eurosceptic country, but it has made the biggest contribution to the flagship project of the Commission led by Jean-Claude Juncker – the €315 billion Investment Plan for Europe designed to stimulate the EU’s post-crisis economy.
The UK announced yesterday (16 July) it will contribute £6 billion (about €8.5 billion) to projects benefiting from finance by the European Fund for Strategic Investments (EFSI),better known as the Juncker Plan. This is in fact the biggest contribution so far.
The plan is based on a 15-fold leverage of a limited €21 billion of initial public money. As Juncker explained, the fund will be called European Fund for Strategic Investments (EFSI), guaranteed with public money from the EU budget and the European Investment Bank (EIB). The Fund will be able to mobilize €315 billion over the next three years.
The Commission has put up €8 billion from the EU budget. This backs up a €16 billion guarantee given to the Fund. Topped up by another €5 billion from the EIB, the sum totals €21 billion.
In addition, the European Investment Bank (EIB) can give out loans of €63 billion. But private investors will be pitching in the remaining €252 billion.
Juncker warned about national wish-lists, and said there was no guarantee how much they would profit from the fund, if they contribute to it.
Brussels Extends the “Juncker Plan” Beyond 2018 and Outside the EU
Flash Forward May 31, 2016: Brussels Extends the “Juncker Plan” Beyond 2018 and Outside the EU.
Via translation from El Pais …
The European Commission wants to give new impetus to the Juncker Plan, which aims to mobilize investments of over €300 billion by mid-2018. Brussels announced today that the project will be extended by at least two additional years, and aims to make it permanent. The executive arm of the EU will also seek to finance investments outside Europe, in conflict areas and projects related to immigration.
Juncker does not stop there: the head of the Commission shall submit a legislative proposal in autumn to expand the plan beyond the timeframe foreseen (mid-2018). According to sources, the idea is to extend the plan at least two more years, with firepower equivalent. And look for something more ambitious, even permanent, once the next EU budgets are negotiated.
The scheme bears the name “Juncker Plan” to make it easy to point blame if the plan fails.
A leverage ratio of 1/15 is high but not unusual in some projects the EIB, and the environment of current liquidity abundance favors private funding plan. Fund management itself will be a major challenge, as it involves decisions in a short time on the economic viability of many projects with significant distributional consequences between countries and sectors.
A final positive aspect not mentioned so far is the possibility that countries make additional contributions to the fund without being included in the deficit posted by Brussels in the stability and growth pact. This can be an escape route for France to carry out its desired fiscal expansion by the back door (Italy it is more difficult, since by its high debt is also controlled by markets). However, it is not clear whether these additional contributions can be directed implicitly makes the country, so it is not known whether it will be sufficient to increase the fund’s ability incentive.
Plan Failed Already
“So far it has not failed” said Juncker.
Translation: The plan has failed and Juncker has his hands in every country’s pocket for more funding. The UK is already already the biggest contributor to this madness, having wasted €8.5 billion.
Juncker now wants more … for immigration projects!
Anyone on the Brexit fence reading this and not immediately knowing how to vote, likely has mad cow disease (or worse yet, mad Juncker disease).
What is it with Libtards who think that taking money from hard-working, under-paid, over-taxed locals who deserve their meager pay and giving it to worthless invaders who won't appreciate it, will waste it, and demand more or threaten violence, is a good idea? That's just retarded; I mean libtarded.
Whoever said: "Hey, you know something? That free shit stolen from loyal citizens idea might just work." NO ONE.
Here's a better idea: send them all to Russia, their ally. From Syria to Egypt to Libya to Somalia, for decades, they have all been Russian allies, so go live on the steppes.
Juncker is a moron. It amazes me how many egregiously stupid people the EU habitually appoints to run it.
you always want someone in your pocket who cannot stray too far
You got something wrong. The plan was always to spend 300 billion of taxpayers money with friends. About the 20 billion I cannot tell. For sure they don´t give them back.
He is not a moron, he is a terror.
What are 'immigration projects'? Is the EU really spending billions to bring even more unwanted people here?
"But private investors will be pitching in the remaining €252 billion."
Is the ECB a private investor?
Even if the result is in favor of Brexit, which is not very likely, they can always do a Greece and turn a Leave to a Stay. Because national security and other bullshit amid a cloud of heavy censorship.
'Postal votes' will swing the election at the last minute. Just like in Austria...
This would be why 50,000 British servicemen have reportedly beeen denied a vote at all, while "EU citizens" have been given votes. Vote rigging, pure and simple. As rotten as our last general election, where all viable opponents to TPTB were oddly eliminated.
Not sure which way this will go.
squid
The longer the campaign has been going on the more of my friends are coming round to voting out. The only people Who want to stay are those to lazy to research and are blinded by the propaganda and those who directly benefit from the EU.
Turned to Youtube last night and watched Brexit the Movie, followed by the Spectator Brexit debate at the London Palladium. Storming performance by Farage.
Brexit is the obvious choice.
Unfortunately Joe Public watching BBC news will see it differently.
This would be great if it were a BBC or Grauniad headline. Sadly, as a ZH story, not a single "Undecided" or "Remainer" will see it, despite every effort to post it everywhere and not have it deleted almost immediately,
RS
The BBC is a full on propaganda organisation.
You will not see anything anti-europe on there. From now till the referendum it will be full of bremain press releases about how the EU membership has benefited the UK and how leaving might give you Aids.
Share it then on social media, mainstream media is dead and ever more people are realising it.
It is strange though, I was completely unaware we had even "invested" the first 8.5 billion Euro's. It just goes to show how a heavily indebted country like the UK running a huge deficit is still able to lose billions on wild overseas schemes.
Even Charles Ponzi paid out to some people, Junkers manages to fleece everyone!
While bremain will win by the slimmest of margins, Brexit will get many more votes but less than 100%. Given that there are still those in the US who still like Hillary, it doesn't shock me that there are some in the UK who will vote to stay in the EU.
Not living in the UK any more, I have been pretty out of the loop, but it has been suggested to me that the older you are, the more likely to exit you are, but the younger, the more likely to remain. Talking to a ten year old Brit, who said that they had done some work on it at school, and everyone, especially the teacher, was for staying in. I asked what the arguments were for remaining, to be told, "oh, we didn't learn about that, the teacher just said we should stay in".
It would seem that it is not just US schools which need some help......
One reason should be enough, FUCK THE EU.
I want a T-Shirt that says that... FUCK THE EU
And one for tuesday - Fuck NATO
Monday - Go Putin
Sunday - Kill RAPEFUGEES
Saturday - Fuck Joo's
Wednesday - KNOBILITY must die!
Thursday - Buy moar gunz
Friday - (RRR) Rince,recycle,repeat.
Britain will not be allowed to escape the EU slave ship no matter what. If every last Brit and resident voted to get out they would be trapped back in one way or another. Britain is a high value prisoner.
But the Greeks voted against bailouts and... - Oh fuck!
wonder when this madness is going to stop, ok i know when the 3rd ww kicks in
FUCK OFF JUNKER.
HISTORY WILL NOT BE KIND TO YOU.
YOU WILL PROBABLY NOT BE REMEMBERED AT ALL EXCEPT AS A WALKING DISASTER.
BREXIT WILL "MAKE MY DAY" PUNK.
UK/EU immigration is a mess.
That would be one of the top reasons for me to vote to leave.
Except it isn't a mess, it's the free movement of people across a trading bloc.
What is so difficult to understand?
Do they check your passport when you arrive in Texas?
Best stay out of things you are gathering fact about through the well documented media bias.
The first country to leave the EU will have it best. There is Portugal, Italy, Greece and one day France who, if any leave will bring it all down. Get into the first lifeboat and row as fast as you can from the sinking ship.
This sums up why the EU has been a disaster for the UK, economically speaking at least.
http://thesoundingline.com/the-u-k-e-u-referendum-whats-at-stake/
Brits......
Jeeeeeeeeeesus H. William Wallace Christ
Free yourselves from the Longshanks tentacles of the Pee Ewe....
Good GOD man - what would Churchill do???
Not only Churchill
"Say what you will about the rest of her legacy, but when it comes to the economic disaster today known as the euro, Margaret Thatcher was downright prophetic. In a delightfully acidic speech delivered before Britain's House of Commons in 1990, and posted below, she summed up her feelings about European integration: "No. No. No."
Specifically, Thatcher opposed to the idea of handing political power to a European parliament, giving up the pound for a single European currency, or handing over its monetary policy to a European central bank."
https://youtu.be/U2f8nYMCO2I
Churchill would likely open another bottle of bollinger and light up a monte cristo and tell us we have to stay in the EU or the economy will collapse. Priviliged, Joo serving traitor that he was, second only to Cromwell of course.
You weak and totally clueless Brits have allowed the EU to screw your once mighty nation. England has been robbed and taken over by filthy invasive third world trash...there are so many of them that a Muslim is now the Mayor of London. Your nation is fast becoming a 3rd world sewer pit, and living conditions will only get worse. Expect your standard of living to drop substantially. Sadly, you have ZERO chance to take Britain back because you have allowed your gubment to disarm you. Fools.
Yep...you blokes should have listened to us "racists" and "haters" when we warned you about the dangers of liberalism/socialism, and the white western civilization destroying DIE-versity that goes along with it. Goodbye, chaps.
The Brits had the great MP Enoch Powell to warn them as far back as 1968 as to why they should wary of immigration. He warned them all through the 1970's as to why Britain should steer clear of the EU, and predicted how it would work out, becoming a freedom-destroying bureaucratic behemoth, and his warnings proved to be prescient.
He was another 'voice in the wilderness', another Jeremiah, and, like Trump today, the people rallied to him while few in power listened to him, and liberals scorned him as a 'racist' and a 'hater'.
You have to wonder how many of the children of those who heaped that scorn upon Powell are joining the Brexit movement, as the 'sins of the fathers' in supporting the EU and mass immigration have been visited upon the sons.
Two things have RUINED ZH.
The Trump nomination and the EU referendum in the UK.
This site used to have GOOD and INSIGHTFUL finanical news that was off the norm. Now it's just a site for whack jobs and loud mouths who are quickly forming a queue behind their 'new saviour'.
For gods sake get back to the finance and ban this political hacking - it only attracts partizan morons anyway.
Finance without politics an politics without finance.
Agreed, let's go back to the "good old days" (way, way back).
But wait, you want ZH not to reflect the world today ?
No, he just wants actionable (and free!) tips that he can capitalize on. It's all that matters to him.
Well I'm glad you put your mind to rest.
It couldn't possibly be that this is supposed to be unbiased financial insight and not some form of cheerleading for the idiot mob.
I don't need tips by the way, I have skills, earn my money the old fashioned and moral way.
The world today is ALL about the economics (stupid) - the Trump and the Ey referendum are merely inevitable consequences.
We don't need to know about the disease, just the causes thanks.
...and this, too shall pass.
We have been here before, and the site got over it. Remember the Bundy Ranch? You couldn't have an article without the comments descending into prepper hell, but we're over that, now (for the most part). Couldn't read a post before 2012 that didn't have "Gold, bitchez", but we're all right now ;-)
I was very anti Trump/Hitlery posts, until I realised that they are mostly quite good fun, in a fluffy, pointless way. Besides, what else can Tyler say? “We're all doomed?“ We rather know that, and he probably doesn't want to sound like Phoenix Capital, all the time.
PS Thank you Tyler for listening 're margin/page width on the comment box. Just need to lose the mad giant header, and reduce the page width on the article text, and we are sorted. Oh, and the floating chat box. Please?
In a normal society social movements dictates market movements, so yes I do find it useful for ZH to keep us up to date with nonbiased social events.
Not so sure we live in a normal society anymore though...
That's an incorrect analysis - the current political situation was born from the economic failure in 2008. The markets move politics, not the other way around.
Hitler, Stalin, Mao - all born (politically) from economic crises. Why do you think this is any different?
Hell even the Austrian economic movement was born from a crisis - economics drives everything - it's literally what we do!
I can't believe the Brits even have to spend more than about six seconds to make up their mind in this. Their press must really be doing a number on their heads.
The Europeons don't get to "vote" on continuing serfdom only the Brits and everybody knows they love their upper class and know "their place". So to imagine that the peasantry will "vote" to cast off their euro chains or if they did that their "votes" would be respected by the Europeon aristocracy is naive beyond belief.....almost like USSANS imagining that Pompadour Don is the solution to Hillbillie Klingon and the ongoing collapse of their serial warmongering freeloader food stamp empire.
Hope dies last among the hopeless.
I saw a clip on SkyNews or BBC, whichever one it was, where they went to Gibraltar. Not a single Brit or even those who came over the border to work in Gibraltar favored the UK leaving the EU. Not surprising, since they are physically connected to the mainland and they apparently are enjoying their leisurely life there. I enjoyed the Brexit movie more, though, as they had a few clips of Nigel Farrage -- he would be elected pretty easily, although there would be a lot of things to fix, and I doubt he would want the job. Hopefully one day UKIP will be in the majority.
https://www.youtube.com/watch?v=eYqzcqDtL3k
Link to "BREXIT: The Movie"