Tuesday, December 14, 2010

Ellisons Speke Liverpool

NOTHING BOX CHILD SANTIAGO 13/12/2010 BECERRA DIXIT


The affair of the English air traffic controllers had managed to remove the latest news of the kingdom, or at least defer to the inside pages and secondary sites of most newspapers and news a number of issues, I understand are of paramount importance, absolute, especially at the present time:

- The super super very important requirements that the Bank of Spain announced financial institutions present in the kingdom to be met from 01.01.2011 and quarterly, designed to increase exponentially, financial information such public entities. This information must also include the results of 2010. A highlight : distinction between doubtful loans and failed and type of property: construction, completion, ... in the event that the loan guarantee to be property developers and builders. The impact of these reports (if they come to make public and what is published is not subject to any form of make-up, something you do not have to assume) will be mega monster and force financial institutions to reassess the carrying value of its assets. (He begins to miss not include bonuses, and would have been desirable that such requirements have been expressed in June, when the stress tests were published, possibly Spain's debt would have saved a lot of tension, or maybe not.)

- The cancellation, effective next February, the aid of 426 euros that have been receiving people unemployed, according to certain criteria and who have exhausted the subsidy. The impact of this measure, if it finally takes place, which I doubt, will be tremendous, especially taking into account that unemployment, I think, will continue to increase: no forget: the English economy requires inexorably grow at least 2.0% to create jobs and / or absorb unemployed labor force.

- The fact that Spain is one of the most indebted economies in the world with a total debt stock exceeds 400% of GDP, and the causes and consequences of such a volume of debt, high unemployment, low productivity, activities fundamental for the English economy in decline, causes and consequences of independent political party in the state government and the political color of regional and municipal governments.

- The reform of pensions, or yes, must be completed on 28.01.2011. (Do not forget one of the definitions given SAR the word in question: "What we proposed, planned or executed as innovation or improvement of something": 'innovation' and 'improvement': mmmmmmm).

Besides this, the militarization of these professionals has led me to reflect on an event to acknowledge, has so far overlooked. The definition of a state of alarm the sample Organic Law 4 / 1981, to June 1, the states of alert, emergency and Site, in its art. 4 I read ( http://www.definicionlegal.com/definicionde/EstadoAlarma.htm ):

"The Government, in exercise of the powers conferred by Article 116.2 of the Constitution may declare a state of alarm, in whole or part of the country, whenever any of the following serious disturbances of normality: Disasters, public calamity or calamities such as earthquakes, floods, forest fires and urban or large-scale accidents. Health crises such as epidemics and severe pollution situations. Stoppage of essential public services to the community, if not to ensure the provisions of Articles 28.2 and 37.2 of the Constitution , and either of other circumstances or situations contained in this article. Shortage situations staples. " (Article 28.2 of the English Constitution refers to 'strike', and 37.2 to 'industrial disputes').

Reflection is very simple. Given that all-all-Spain is in a state of alarm, do not find very, very, very wide dimension of the cases in which a state of alarm can be declared?. The situation created by the non-appearance of a number of drivers to their place of work was considered sufficient reason for a state of alarm may be declared, could, for example, become a reason for his testimony, the court Ronda Litoral Barcelona by the workers of the assembly plant of Nissan vehicles the company is on the firing Free Zone in protest over losing the grant of the assembly of a new model by the matrix?.

In another vein, the pension reform: it is coming. What is not said, so no wonder: a) Why not three years ago said that the number of pensioners in 2025 would make impossible the pension system?: Such things do not appear today morning. b) Although less and less, it goes on to argue that if the population was much higher than today's pension system would be unworkable as it now is, are you assuming that most people would be needed in terms of employment and would be occupied and trading ?. c) is increasingly being recognized that the productivity will increase, against a backdrop of rising productivity, what part of the English population, that is going to have to retire later and contribute more years will have a job that allows you to contribute to get an adequate pension?. Why not formulate these questions: in times like these, where is the opposition?.

I think the issue goes much further. The pension system as we know it is no longer necessary because there is no longer to calm fevered hordes of workers steeped in leftist ideology, and because the maximization of consumption is no longer a target. Now it reduce costs and expenses of any kind, to ensure pay what is due, to gain the confidence of those with the power fluid that can do what needs to be done, and because things like redistribution, egalitarianism, reducing the poverty rate and the like are no longer important, especially since each time what the citizens vote counts for less.

All parties, but we're here in the Kingdom of Spain 'pension reform' is going to impoverish the population because: 1) the unemployment rate will not fall so the average individual contributions will be reduced as well increase the number of years of contribution required, the average pension will fall, 2) very few / English I / is able to devote savings to supplement your pension, and that's assuming that the financial system will not suffer any upheaval affecting these future commitments, 3) youth, and undermileuristas mileuristas, and temporary mostly black or contract, may contribute little or intermittently, so as' the Today's pensions are paid with proceeds today ', ever fewer funds to pay the pensions of today, but as less and less labor will be necessary, it is estimated that the contractual conditions and wages of young people will be worse, so their pensions, if they do (I do not think that young people today have no pension and they also believe) will be more than ridiculous, to which we must add a zero savings capacity of these young people.

The result is impoverishment of today's retirees (the freeze of 2011 I think it will be repeated in the future, and will be repeated later), complete depletion most of the morning, miserización of future: today's youth. Is inevitable, because: the evolution of things it is: in terms of what was done yesterday ... but I do not deny that pissed.


Santiago Niño Becerra. Professor of Economic Structure. IQS Faculty of Economics. Ramon Llull University.

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