Traditionally, I always watch the US President's state of the union address, while I ignore the address of the President of the European Commission. This year, I did the opposite & yesterday I was richly awarded by Ursula von der Leyen. ec.europa.eu/commission/pre…
Her start: "One of the most courageous minds of our times, Andrei Sakharov – a man so admired by this House
- always spoke of his unshakeable belief in the hidden strength of the human spirit.
In these last six months, Europeans have shown how strong that human spirit really is."
She focused on human values: "We are inspired by their empathy, bravery and sense of duty – and I want to start this speech by paying tribute to them all."
"This will show Europeans that our Union is there to protect all."
"We must tear down the barriers of the Single Market. We must cut red tape. We must step up implementation and enforcement. And we must restore the four freedoms – in full and as fast as possible.
The linchpin of this is a fully functioning Schengen area of free movement."
Remarkably, von der Leyen did not even mention the US, but stated: "We might not always agree with recent decisions by the White House. But we will always cherish the transatlantic alliance – based on shared values and history, and an unbreakable bond between our people."
"we will propose to extend the list of EU crimes to all forms of hate crime and hate speech – whether because of race, religion, gender or sexuality.
Hate is hate – and no one should have to put up with it."
von der Leyen stands for a new EU commitments for values: "Be it in Hong Kong, Moscow or Minsk: Europe must take a clear and swift position.
I want to say it loud and clear: the European Union is on the side of the people of Belarus."
I just hope that the EU really (finally!) acts accordingly. This was a very inspiring speech.
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Trump insists on being the dumbest & most uninformed US president ever, causing the US tremendous damage, while enriching himself through dubious deals. What Trump has got wrong: 1. He claims that everybody has "ripped the US off," but the US GDP is 25% of global GDP as in 1980.
2. The US has thrived on the "exorbitant privilege" of foreigners investing $31 trillion (June 2024) in US bonds & stocks. The US is the greatest debtor in the world with a public debt of $36 trillion, $29 trillion in US treasuries.
If Trump was honest, he would thank.
3. Few countries can have a steady budget deficit of about 6.5% of GDP each year - $2 trillion a year - & find cheap financing. 4. The US stock market amounted to 70% of all global stock market capitalization thanks to US hi-tech & Biden's reliability.
Musk's so-called Department of Government Efficiency has caused tremendous damage to the US government & virtually nothing good: 1. By and large, it has operated against the law leading to hundreds of suits & no sustainable positive effects. /1
2. What one would have hoped that software engineers would have done is badly-needed digitization & simplification of government services, but apparently they have done none. /2
3. DOGE seems to have acted with a Putin agenda: End US soft power & international good deeds, closing USAID with food aid & epidemiological foresight. 4. DOGE has closed down US government media outreach - Radio Free Europe, Radio Liberty & Voice of America for Putin. /3
Everything is wrong with Trump's economic policies. Today, the US has the most incompetent economic policymaking of any developed economy & most emerging economies. 1. The prime US economic problem is an excessive public debt of 120% of GDP & budget deficits of 6.5% of GDP... /1
...The obvious cure is to force the wealthy Americans & their companies to pay taxes - many of them pay nothing. The US public expenditures are tiny by international comparison. /2
2. The US has a current account deficit because it consumes too much, far more than it saves.
Trump refuses to acknowledge this obvious fact instead blaming all foreigners for "ripping off" the US.
This is a blatant lie depriving the US of all good will. /3
In the last two weeks, US markets of all kinds have recovered.
I think this is a big mistake. Trump's tariff policy remains mad & enormously harmful to the US & the world.
He has still quadrupled US income tariffs & made the US the enemy of the whole world. /1
As everybody points out, Trump is unable to accept truth, to apologize or to retreat. Therefore, the US/Trump disaster is set to continue as long as he rules.
The GOP congressmen could stop it, but they are too cowardly.
The US billionaires are even more dastardly (cf Bezos) /2
It is claimed that Canadian PM Mark Carney checked Trump on April 9. Let us wish him a successful meeting with Trump next week!
Foreigners can gradually withdraw from the US treasury market & Trump will stew in his juices.
The alternative is a great depression. /3
Let me state the obvious again:
Nobody has ripped the US off as Trump so mendaciously claims.
On the contrary, the US has benefitted from an exorbitant privilege, that his predecessors & sound US institutions have imbued trust in the US $ & US treasuries. /1
Therefore foreigners held $30,881 billion of US securities on June 30, 2024, while the US GDP was merely $28 trillion. Of this $7.1 trillion was foreign holdings of US treasuries, of which $3,557 billion was held by foreign governments. /2
…ticdata.treasury.gov/resource-cente…
Everybody but Trump seems to understand that the outside world has financed the massive US public debt of $36 trillion with $2 trillion or 6.5% of GDP being added each year.
The US needs to behave decently if it is to continue attracting foreign funding. /3
Increasingly, the American public (save Navarro & Lutnick) realize that Trump's high & unjustified tariffs are qualified madness.
Tariffs are taxes paid by Americans.
But they are not decided by Congress (which they should be).
They disrupt trade & may cause shortages. /1
Tariffs boost US prices.
Trump's capricious tariff policy has disrupted all confidence in the US economy & US assets.
Trump has made it unwise or worse to invest in the US.
At the same time, Trump undermines the fundamental rule of law in the US. /2
The US has benefited from the exorbitant privilege of great recognition as the safe haven of the world.
In 100 days, Trump has eliminated this international trust.
Absurdly, he claims that kind foreigners lending the US government credit are "ripping it off". /3