Tag: Eurogroup

What exactly is the truth?

What makes an open society function healthily?.

I suspect very few of you regular readers will recall that in 2009 (24th June to be precise) I ran a very short article under a similar title.  This is what was published.

A simple heading but, in truth, a very complex subject.  This was brought home by a recent article in The Economist by Bagehot.  That is “Politicians frequently lie. So does everyone else. Why all the fuss?”

Bagehot writes a Blog so those who don’t read the newspaper can read the rest of his thesis here.

Here’s some of that essay by Bagehot,

On lying

Jun 30th 2009, 14:43 by Bagehot

THE WORD “lie” means something very specific. It doesn’t mean a misleading statement, or an exaggeration, or a half-truth: it is a falsehood advanced intentionally and knowingly. That is why, in my column last week, I wrote that probably only Tony Blair and his crew could know whether they “lied” about Iraq’s weapons of mass destruction. Only they can know what was in their heads, and how far their public utterances diverged from their inner convictions. For that reason the question of lying over Iraq seems to me a bit of a red herring and distraction. What can be proved about their sloppiness and embellishments, and has been, is bad enough.

Lying is back in the news this week. Gordon Brown stands accused by various newspapers and columnists of deliberately misleading the public about the government’s fiscal position. Ditto Ed Balls, the prime minister’s henchman, who evidently doesn’t take kindly to having his integrity impugned in this way. David Cameron is a bit more periphrastic, knowing that in political parlance the “l” word is a nuclear accusation; but he came pretty close to it yesterday with his talk of “a thread of dishonesty” running through Mr Brown’s premiership.

There are (at least) two big questions provoked by this revived interest in lying. First and most obviously, are Mr Brown, Mr Balls and others really and indisputably liars? Do the fiscal figures they cite and twist in any way support the interpretation they put on them–at least enough to make it credible that they believe what they are saying, even if no-one else does? If so, they may not be lying. They may be over-optimistic, incompetent or deluded. But they are not obviously liars.

Just re-read those last few sentences, “Do the fiscal figures they cite and twist in any way support the interpretation they put on them–at least enough to make it credible that they believe what they are saying, even if no-one else does? If so, they may not be lying. They may be over-optimistic, incompetent or deluded. But they are not obviously liars.

Delay your judgement for just a few minutes while we go to this next item.  This next item is a recent essay from John Maudlin, the financial expert, about the latest jobs report in the US.

What Happened to the Jobs?

By John Mauldin

July 7, 2011

The US jobs report came out this morning, and it was simply dismal. This week we look at not only the jobs report but also “what-if” proffers for the US and global economies. There’s a lot to cover, so let’s jump in.

First, there were only 18,000 jobs created in June, the lowest since September 2010. While private employment rose by 57,000, government workers dropped by 39,000, continuing a trend as governments at all levels work to cut their budgets. Long-time readers know I think it is important to look at the direction of the revisions, and we got no help. May was revised down by 29,000 jobs and April a further down 15,000.

I saw some headlines and talking heads in the mainstream media saying the poor number was due to “seasonals,” and I just shook my head. If you are that reflexively bullish when presented with what was clearly a bad report, how can you be taken seriously? You know who you are. And then Philippa Dunne of the Liscio Report sent the following note. She is one of the best data mavens there is on jobs and employment.

John M. then includes quite a long extract from Philippa’s note. You can read it and the rest of John’s article here.  Here’s how that extract from Philippa Dunne ends,

Also, there is no adjustment to the headline number – the sectors are adjusted separately (96 different industries at the 3-digit NAICS level, to be precise) and the total is the sum of those components. The whole argument is bogus.

Notice that last sentence, “The whole argument is bogus.” [My emboldening, Ed.]

OK, clearly not lying, in the strict definition of the term.  But still delay your judgement.

Back on the 25th June this year, I wrote a piece with the title of Lying is OK, that’s official! Duh!  I stated very clearly that lying is wrong!  Mind you, one could at least congratulate Jean Claude Juncker for honestly admitting being a liar. (Jean Claude Juncker is the Prime Minister of Luxembourg and the head of the Eurogroup council of eurozone finance ministers.)  Here’s that video clip with Juncker admitting that when it’s serious one has to lie!  (Listen carefully, the words are quietly spoken.)

Finally, I have long followed Yves Smith’s excellent Blog, Naked Capitalism. Just yesterday, Yves wrote a powerful piece,

MONDAY, JULY 11, 2011

More Proof That Obama is Herbert Hoover

Not only is Obama assuring that he will go down as one of the worst Presidents in history, but for those who have any doubts, he is also making it clear that his only allegiance is to the capitalist classes and their knowledge worker arms and legs.

It’s an angry essay that has, at it’s heart, an anger at the lack of true representative government, remember the one that Abraham Lincoln had in mind when he wrote, “Government of the people, by the people, for the people, shall not perish from the Earth.

Yves concludes in that article thus,

Even knowing how dedicated to bad ends Obama is, I still feel like I’ve walked into a parallel universe. He’s now determined to make these horrific entitlement cuts a sign of his manhood. This is “Change” for sure, to a more brutal, grasping, dog eat dog society, all administered by self serving elites. They will in the end reap the whirlwind they are creating, but not before it mows a path of destruction through our social order.

Right, time to draw it all together.

Despite my chest-beating on the subject of politicians and leaders deliberately lying in that recent piece about Juncker, there’s something much more fundamental.  What defines lying is really not that important.  It’s whether or not we trust that our leaders are doing their best for their constituents, to the best of their abilities.

Whether you support left-leaning or right-leaning policies is unimportant; indeed political differences and the ability to vote for one’s beliefs is at the heart of an open democracy.

But if we don’t trust that our leaders are doing their best for our country then that causes the destruction of faith.  If we do not have faith in those that lead us then the breakdown of a civilised social order becomes a very real risk.

These are such difficult times impacting us across so many fronts. Scarily, one seems to find many who have lost much faith in their leaders.

That, my friends, is the truth.

Lying is OK, that’s official! Duh!

I find this utterly unacceptable – here’s the story

Jean Claude Juncker, lying for Europe!

I was talking to someone in the UK just a couple of days ago, Martin J., about investment matters and we were generally ‘slagging’ off the quality, or rather the lack of quality, of the statements of leading political persons in many fields of government.  Martin then made the statement that Jean Claude Juncker, the Prime Minister of Luxembourg, and the head of the Eurogroup council of eurozone finance ministers had recently stated that “When it becomes serious, you have to lie,”  I was staggered to hear this and asked Martin to supply the details.  Here they are.

Mr. Juncker’s remark had been widely reported and I have chosen the Wall Street Journal’s report to quote from in Learning from Dogs.

MAY 9, 2011, 10:54 AM ET

Luxembourg Lies on Secret Meeting

By Charles Forelle

Is lying considered an appropriate mode of communication for euro-zone leaders?

We have to wonder after a strange episode on Friday evening. Here’s what happened:

Just before 6 p.m., German news magazine Spiegel Online distributed a report saying that euro-zone finance ministers were convening a secret, emergency meeting in Luxembourg that evening to discuss a Greek demand to quit the euro zone.

Calls from reporters flooded in to Guy Schuller, the spokesman for Luxembourg Prime Minister Jean-Claude Juncker, the man who is the head of the Eurogroup council of euro-zone finance ministers.

In a phone call and text messages with two reporters for Dow Jones and the Wall Street Journal, Mr. Schuller repeatedly said no meeting would be held. He apparently said the same to other news outlets; at least one more moved his denials on financial newswires.

Of course, there was a meeting–although not, apparently, to talk about Greece quitting the currency, which would be an extreme step to say the least. Mr. Juncker even said a few words to reporters who had hustled to Luxembourg to stake out the gathering.

Anyway, do read the article in full here.

In that article there is a YouTube video in which Mr. Juncker says “When it becomes serious, you have to lie.”  You can hear it yourself, about 20 seconds into the video despite the sound level being a tad low.

So that’s official then!  Politicians have to lie!  Grand job.  Talking about jobs, don’t suppose Mr. Juncker will lose his.  Or that he will show that, deep down, he is an integrous man and resign his post.

Yes, of course we all understand that what high-profile people say can affect markets and that, at times, one must be careful in terms of what is said.  But lying?  Sorry, for me that will never, ever be acceptable!

What has this to do with dogs?  Simply, dogs don’t lie.