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Saturday, September 20, 2014 12:18 PM

French Farmers Upset Over Falling Prices, Torch Tax and Insurance Offices, Dump Produce

As a direct result of sanctions on Russia, there is an overabundance of fruits and vegetables in France, Spain, Poland, and elsewhere in Europe. Basic law of supply and demand dictates prices of crops would fall. And they did.

While most foolishly want to stick it to Russia, few actually are willing to pay the price if it affects them.

Here is another case in point: French Farmers Torch Tax Office in Brittany Protest.

French vegetable farmers protesting against falling living standards have set fire to tax and insurance offices in town of Morlaix, in Brittany. The farmers used tractors and trailers to dump artichokes, cauliflowers and manure in the streets and also smashed windows, police said.

Prime Minister Manuel Valls condemned protesters for preventing firefighters from dealing with the blaze.

The farmers say they cannot cope with falling prices for their products.

A Russian embargo on some Western goods - imposed over the Ukraine crisis - has blocked off one of their main export markets.

About 100 farmers first launched an overnight attack on an insurance office outside Morlaix, which they set light to and completely destroyed, officials said. They then drove their tractors to the main tax office in the town where they dumped unsold artichokes and cauliflowers, smashed windows and then set the building on fire.
Everyone Loses

The French protest underscores the stupidity of sanctions. No one wins. Russia does not get fruits and vegetables, but European growers lose income.

France actually the worst end of it, with a tax office destroyed and widespread discontent spreading. In Russia, support for Putin is at all-time high.

Sanctions will never work.

Mike "Mish" Shedlock

Friday, September 19, 2014 2:27 PM

Idiotic Proposals for Fed to Give Away Money

A Fiscal Times, Yahoo Finance article by by John Grgurich claims that Instead of QE, Fed Could Have Given $56,000 to Every Household in America .

Grgurich formulated his article after reading "an intriguing piece just published in Foreign Affairs, Brown University political economist Mark Blyth and London-based hedge fund manager Eric Lonergan argue the Fed could have done better by pursuing a far different type of grand policy experiment."

The "intriguing piece" is Print Less but Transfer More, Why Central Banks Should Give Money Directly to the People.

Sheer Idiocy

  • First, the Fed cannot give away money, it can only make money available for lending. 
  • Second, the idea that the Fed should give away money is ludicrous, even it the Fed could. 
  • Third, Grgurich is in severe need of math lessons as to what actually transpired.  

The Math

According to the census department the number of US households is 115,226,802.

Base Money Supply
has gone up from $848 billion at the start of 2008 to $4.150 Trillion today. That is an increase of roughly $3.3 trillion.

An increase in money supply of $3.3 trillion is not the same thing as a gift of $3.3 trillion. At most, banks made 0.25% interest (free money) on excess reserves parked at the Fed.

The actual amount of excess reserves is $2.7 trillion.

0.25% of $2.7 trillion is $6.75 billion. That is the amount the Fed effectively gives banks, per year. Spread among 115,226,802 households the gift would be $58.58 per year (less actually because excess reserves grew over time they did not suddenly hit $2.7 trillion).

Mike "Mish" Shedlock

9:33 AM

"Surprising" MH17 Crash Update

The title of this article, "Surprising" MH17 Crash Update, is accurate only in the sense the average sheep believes the average mainstream media report.

Since that is the majority, the title is accurate. Mish readers, however, may find this report not surprising.

Reader Marina from Toronto explains via email ....

Hello Mish,

My name is Marina. I am a long-time fan of your blog and a friend of Nicole Foss at Automatic Earth.

I am also a volunteer translator for The Vineyard Saker website. Our team has just translated a very important report on the MH17 crash released by the Russian Union of Engineers.

We have included several prominent journalists and other persons in the distribution of this important document.

Union of Engineers Report

Please open your minds and download the Translated Report on MH17.

Forget about the origin and give the report a read. It may open your eyes.

Looking for another opinion? If so, please consider the Automatic Earth Commentary on MH17.

I side with Raul on Automatic Earth who says "At the very least the report should be broadly discussed in western media, and western experts asked to refute what parts of it they find fault with."

Indeed. Where is the discussion?

My take: There is no government interest in any possibility other than a preordained self-serving US conclusion. Thus, there is not, nor will there be any mainstream media analysis of that nature barring a Watergate or Snowden-type disclosure.

Mike "Mish" Shedlock

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