Saturday 13 July 2024

THE DECLINE OF THE WEST - SHOULD WE FIGHT OR NEGOTIATE

13 July 2024


But to be serious, the big picture is world peace and prosperity and the context is the decline of the West.

This decline is an own-goal, because we have built up a debt that is swallowing our tax revenues and making it difficult to sell our governments bonds, and we have put sanctions on our competitors to break their economies, and we have moved too close to their borders for their comfort & security to break their governments.

(Never mind that at home we are creating a society of extremes aggravated by economic inequality. But this is not the subject of this article, the subject of this article is IR, International Relations.)

America thinks that it can keep its place as world hegemon by threat.

But we in the West, our leadership, could play our cards differently. We could negotiate. This is not from weakness or about concessions. It is about win-win.

We are not in a unipolar world anymore - America is no longer the only great power. There are others, Russia, China - and more on the way - India and the BRICS. It's a multi-polar world.

Win-win means negotiation. It means listening to and understanding the different demands and positions of the other side; and agreeing to certain of their major points in exchange for concessions on some of our minor points: win-win, the subtle art of negotiation.

(This is a version of that Really Useful spreadsheet, right?)

So hard negotiation could move us along the path of peace and prosperity; rather than war and sanctions that is moving along the path of death, destruction, huge expense and even the possibility of nuclear annihilation in a third world war if things carry on as they are at the present.

Friday 12 July 2024

FRANCE, BEACON OF HOPE FOR THE THIRD WORLD

12 July 2024

France, Beacon of Hope for the Third World

This is the kind of piece that I could have written 10 years ago, but unfortunately there has been a notable decline in the west since then led down by successive American administrations, so this is now what you might call a party political broadcast.

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France has a tradition of being a beacon to the world outside the Western world, a beacon of liberty, equality, and fraternity. In practical diplomatic terms, it has reached out to “third-world” countries, quite possibly for its own economic reasons, and supported them. Consequently, these countries often look to France for political guidance.

However, all this has become rather unstitched since Algeria and particularly since Macron.

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France had an enormous empire in the Caribbean, Southeast Asia, West Africa, and the Middle East. It still has many bases, and this has left it with many responsibilities and obligations.

France created the Organisation Internationale de la Francophonie, part of which is the Alliance Française and the Institut Français, promoting French language and culture across the world.

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France also has its own independent foreign policy. While that may not be entirely feasible these days, it maintains its nuclear force, which de Gaulle would not abandon. This independence gives it the opportunity to mediate in conflicts, which Macron tried to do at the beginning of the Ukraine war.

The British took off and flew over France on their way to bombing Libya in April 1986, during Operation El Dorado Canyon, much to the annoyance of France and its Prime Minister Jacques Chirac at the time. The French government refused to allow American bombers to fly over France for this operation, forcing them to take a longer route around France.

France was also against the war in Iraq in 2003. Chirac’s government emphasised the importance of international law and the role of the United Nations, arguing that the war was not justified without clear evidence of weapons of mass destruction and a mandate from the UN Security Council. He was absolutely correct, and France’s stance gives it a reason to hold its head high in international society. Compare that with what the Americans do and the slavish pom-pom girl behavior of the Brits.

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France is also a staunch supporter of human rights and democratic values, and in this way, it is a beacon of freedom to peoples outside the West.

To give some concrete examples:

- It helped mediate the deal between America and Iran known as the JCPOA.

- Because Lebanon was a former French mandate, it has always helped Lebanon in times of crisis. However, more recently, it has fallen under the dominion of the wretched American empire, which supports Israel, who has plans to attack Hezbollah and once again invade the south of Lebanon.

- France was involved in anti-terrorist operations in the Sahel region of West Africa, primarily through Operation Barkhane, involving around 5,100 French troops from 2014 to 2022. The operation aimed to combat Islamist militant groups in the region and was conducted in cooperation with five Sahelian countries: Burkina Faso, Chad, Mali, Mauritania, and Niger. However, its actions failed to address underlying governance issues and fueled anti-French sentiment. As a result, military coups in Mali and Burkina Faso and protests against the French presence eventually obliged France to withdraw, and its influence was replaced by that of Russia and the Wagner group.

- To give a typical ongoing example - Relations Between France and Indonesia.
France and Indonesia maintain a strong and multifaceted relationship characterised by diplomatic, economic, and cultural ties. As part of its broader outreach to the non-Western world, France has engaged with Indonesia through trade, investment, and cultural exchange. The two countries collaborate on various global issues, including climate change, maritime security, and education. Through initiatives like the French Institute in Indonesia (Institut Français d'Indonésie), France promotes language and cultural programs, fostering mutual understanding and strengthening bilateral relations. This partnership underscores France's role as a supportive ally and a beacon of cooperation in the Southeast Asian region.

Summary of France's Place in the World

France has historically been a beacon of liberty, equality, and fraternity, often reaching out to support third-world countries both for altruistic and economic reasons. It has maintained a unique position due to its independent foreign policy, its commitment to human rights and democratic values, and its extensive cultural diplomacy through organizations like the Organisation Internationale de la Francophonie. 

Despite recent setbacks and rising anti-French sentiment in regions like the Sahel, France continues to play a crucial role in international diplomacy, balancing its historical legacy with contemporary geopolitical challenges.

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12 juillet 2024

La France, Phare d’Espoir pour le Tiers Monde

C’est le genre d’article que j’aurais pu écrire il y a dix ans, mais malheureusement, il y a eu un déclin notable en Occident depuis, conduit par des administrations américaines successives. Cela ressemble donc maintenant à une émission politique.

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La France a une tradition d'être un phare pour le monde en dehors de l'Occident, un phare de liberté, d'égalité et de fraternité. En termes diplomatiques pratiques, elle a tendu la main aux pays du "tiers monde", probablement pour ses propres raisons économiques, et les a soutenus. Par conséquent, ces pays se tournent souvent vers la France pour une orientation politique.

Cependant, tout cela s'est dégradé depuis l'Algérie et particulièrement depuis Macron.

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La France avait un empire immense dans les Caraïbes, en Asie du Sud-Est, en Afrique de l'Ouest et au Moyen-Orient. Elle possède encore de nombreuses bases, ce qui lui impose de nombreuses responsabilités et obligations.

La France a créé l'Organisation Internationale de la Francophonie, dont font partie l'Alliance Française et l'Institut Français, promouvant la langue et la culture françaises à travers le monde.

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La France a également sa propre politique étrangère indépendante. Bien que cela ne soit pas entièrement faisable de nos jours, elle maintient sa force nucléaire, que de Gaulle n'aurait jamais abandonnée. Cette indépendance lui donne l'opportunité de jouer le rôle de médiateur dans les conflits, ce que Macron a tenté de faire au début de la guerre en Ukraine.

Les Britanniques ont survolé la France pour aller bombarder la Libye en avril 1986, lors de l'Opération El Dorado Canyon, au grand dam de la France et de son Premier ministre de l'époque, Jacques Chirac. Le gouvernement français a refusé de permettre aux bombardiers américains de survoler la France pour cette opération, les obligeant à prendre une route plus longue autour de la France.

La France s'est également opposée à la guerre en Irak en 2003. Le gouvernement de Chirac a souligné l'importance du droit international et du rôle des Nations Unies, arguant que la guerre n'était pas justifiée sans preuves claires de la présence d'armes de destruction massive et un mandat du Conseil de sécurité de l'ONU. Il avait parfaitement raison, et la position de la France lui permet de se tenir la tête haute dans la société internationale. Comparez cela avec ce que font les Américains et le comportement servile des Britanniques.

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La France est également un fervent défenseur des droits de l'homme et des valeurs démocratiques, et de cette manière, elle est un phare de liberté pour les peuples hors de l'Occident.

Pour donner quelques exemples concrets :

- Elle a aidé à négocier l'accord entre l'Amérique et l'Iran connu sous le nom de JCPOA.

- Parce que le Liban était un ancien mandat français, elle a toujours aidé le Liban en temps de crise. Cependant, plus récemment, il est tombé sous la domination du misérable empire américain, qui soutient Israël, qui a des plans pour attaquer le Hezbollah et envahir à nouveau le sud du Liban.

- La France a été impliquée dans des opérations antiterroristes dans la région du Sahel en Afrique de l'Ouest, principalement à travers l'Opération Barkhane, impliquant environ 5 100 soldats français de 2014 à 2022. L'opération visait à combattre les groupes islamistes militants dans la région et a été menée en coopération avec cinq pays sahéliens : Burkina Faso, Tchad, Mali, Mauritanie et Niger. Cependant, ses actions n'ont pas réussi à traiter les problèmes de gouvernance sous-jacents et ont alimenté un sentiment anti-français. En conséquence, les coups d'État militaires au Mali et au Burkina Faso et les manifestations contre la présence française ont finalement obligé la France à se retirer, et son influence a été remplacée par celle de la Russie et du groupe Wagner.

- Pour donner un exemple typique en cours - Relations entre la France et l'Indonésie.
La France et l'Indonésie entretiennent une relation forte et multiforme caractérisée par des liens diplomatiques, économiques et culturels. Dans le cadre de son outreach plus large au monde non occidental, la France a engagé l'Indonésie par le biais du commerce, des investissements et des échanges culturels. Les deux pays collaborent sur diverses questions mondiales, y compris le changement climatique, la sécurité maritime et l'éducation. Grâce à des initiatives comme l'Institut Français en Indonésie (Institut Français d'Indonésie), la France promeut des programmes linguistiques et culturels, favorisant la compréhension mutuelle et renforçant les relations bilatérales. Ce partenariat souligne le rôle de la France en tant qu'allié de soutien et phare de coopération dans la région de l'Asie du Sud-Est.

**Résumé de la place de la France dans le monde**

Historiquement, la France a été un phare de liberté, d'égalité et de fraternité, soutenant souvent les pays du tiers monde à la fois pour des raisons altruistes et économiques. Elle a maintenu une position unique grâce à sa politique étrangère indépendante, son engagement en faveur des droits de l'homme et des valeurs démocratiques, et sa diplomatie culturelle étendue par le biais d'organisations comme l'Organisation Internationale de la Francophonie.

Malgré des revers récents et une montée du sentiment anti-français dans des régions comme le Sahel, la France continue de jouer un rôle crucial dans la diplomatie internationale, équilibrant son héritage historique avec les défis géopolitiques contemporains.

ANALYSIS OF 2024 FRENCH ELECTION RESULTS

12 July 2024


The results paint a picture that is complicated by that deal made on the left where weaker candidates in the new Popular Front alliance would step aside and let the stronger candidate fight directly the RN, with the result that although the RN's share of the vote went up from 33% to 37%, and the number of seats they won did increase dramatically, but the increase was far less than had been expected by the pollsters.

I think that many people voted not for what they wanted, but to keep the RN out of power. And some even took to the streets to protest the first round results.

I think as well that without all that tactical voting, there would have been a clear win for RN. Now some people may think this would be good and some may think it would be bad, but the reality is that it was a choice between keeping the RN out and the chaos that has followed, or allowing the RN to pass and have their turn at government.

Instead of letting them pass, what we have now is a situation where they are more likely than ever to win in 2027 - "Ce n’est que partie remise", "This is only postponing the inevitable", said Marine Le Pen.

As to the Mainstream Media rhetoric, the MSM made out the RN to be on the extreme, far or hard right, and in this way were trying to tell us that they are the same as the national socialists in Germany of the 1930s and 40s ... but is this true? They just seem to be a party that wants to put the interests of 90% of the electorate who have French as their first language and culture, before those of the waves of immigrants, legal and some illegal. The objection to this is that many of these are French passport holders, some dual nationals, and the state acting to lessen their rights is a fundamentally apartheid idea and against the Liberal idea that we are all created equal and have the same rights to "life liberty and the pursuit of happiness".

So I would characterise the French second round in the same way as the UK elections: it is the electorate rejecting the incumbent more than anything else. 

In fact, it is possible to split the electorate into three groups, a socio-economic breakdown, and to identify those rejecting the incumbent - this is useful because it might suggest a possible coalition of interests as a way out of the current impasse. 

A. Urban, living in major cities like Paris, Lyon, and Marseille. These voters will have access to better infrastructure, education, and employment opportunities. Generally more cosmopolitan and supportive of progressive policies, which include immigration and EU integration and in the UK at least neo-liberalism (often called Woke).

Then there is also the Management and Executive Elite, again living in urban areas where the work is, but high-income professionals, corporate executives, and entrepreneurs. They would tend to support pro-business policies, lower taxes, and economic deregulation.

These groups align more with centrist or centre-right parties like Macron's Renaissance party.

B. Secondly, Rural, the French equivalent of America's rust-belt left-behinds, living in the towns and villages of the provinces, outside big conurbations, major urban centres. They have economic problems, such as poor employment prospects and slower economic growth. These voters are often more conservative and nationalist, with concerns over immigration and globalisation. 

This is where the National Rally finds its main base, due to its anti-immigration anti-globalist stance and its promises to revitalise rural economies. Dissatisfaction here could spawn more yellow-vest protests.

C. And then thirdly, we have the Left-Wing alliance of a diverse range of voters, from young urban professionals (coucou), to blue-collar workers in industrial centres and high school & university students. 

Their values are in social justice, environmental protection, and workers' rights. They are often highly critical of neoliberal economic policies and favour increased government intervention in the economy. 

The New Popular Front, comprising parties like the France Unbowed and moderate socialists, draws significant support from this group.

This 3-way split results from analysis on economic and social factors, but what if we divide into governing class and governed? If you see the conflict as between a globalist elite Who cares more about itself than its peoples, and peoples who huddle under a socialist umbrella, then you would only need to divide the peoples' leaderships between those who are internationalists and those who are nationalists.

This would help understand why the RN got such a pasting in the MSM - because they do not support the global neocons - a position which is also pro negotiation and anti arms sales for Ukraine and Israel. 

So you might now think an alliance is possible between the left and right on the common ground of rejection of the centre's pro-globalist, pro immigration, pro-war policies and the centre's lack of support for "the people". But while it is true that it is easier to get agreement on things that you don't like such as globalisation and economic protectionism, It is more difficult get agreement and implementation on things you do like such as immigration ( The left and centre both have a view of a world without borders, though for different reasons).

So on top of this tactical voting maneuver, the RN also suffered all the negative MSM elite-inspired press coverage, call it propaganda

The cleavage runs along the line of where each party feels "home" to be. The RN believe in borders and the idea of a nation state with a people - the French - with a French national interest and a French culture and identity, of which they are proud. This is a political and social attitude that favours equality and fraternity and finds its home - herein lies the problem - in the nation state or the workers international proletariat.

Aswhere in this view of "elite and people", the elite is for open borders, economic freedom, movement of capital to wherever the returns are greatest, in other words for more integration into supra-national bodies like the EU -  this is globalisation. This is an economic attitude that favours liberty and equality and finds its home in the American Order.

I think that fundamentally the Establishment is trying to have us live in a black and white world: "if you're not for us, you are against us", but reality is more nuanced. There are now many smaller centres of power and instead of opposing views being a trigger for violence or conflict, they should be treated as an opportunity for cooperation and consensus and maybe even coalition government... but that is certainly not in the minds of the deputies in the National Assembly, not at this time.

One solution to this utter chaos in France is for a prime minister from the centre to be chosen by Macron, and for dossiers for each of the policy areas identified in the table above, to be handed out to different leaderships in the Assembly. These leaderships, each now with a Minister in a Cabinet, to be asked to work on their dossier and come back with proposals to be voted on in the National Assembly. 

This could work, once the deputies realise that if they vote against everyone else, then everyone else will vote against them. In other words, the deputies would be obliged to work together cross-party, in a spirit of cooperation so that all the different interests and voices in the country could be heard and in a spirit of tolerance (ie respect for the interests of others), find a place in the Assembly. Let us recall that almost 40% of the electorate are really fed up as they are not represented, plus there are those who voted not for what they wanted, but for what they didn't want: the country is in confusion and there is chaos in parliament.

For interest, here above are the policies of the Left, Centre and Right, according to policy areas that I have identified. Of course these areas, or issues, are not written in tablets of stone, priorities may change, indeed the Left program was put together in just a few days after the shock announcement of elections by Macron. And of course a program of policies is not necessarily going to be implemented - there are many hurdles in the way of execution, notably how will they be paid for, given the state of France's public finances.

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12 juillet 2024

Les résultats dépeignent une image compliquée par cet accord conclu à gauche où les candidats plus faibles de la nouvelle alliance du Front populaire se retireraient pour laisser le candidat plus fort affronter directement le RN. En conséquence, bien que la part des voix du RN soit passée de 33 % à 37 %, et que le nombre de sièges remportés ait augmenté de manière spectaculaire, l'augmentation a été bien inférieure aux attentes des sondeurs.

Je pense que beaucoup de gens n'ont pas voté pour ce qu'ils voulaient, mais pour empêcher le RN de prendre le pouvoir. Certains sont même descendus dans la rue pour protester contre les résultats du premier tour.

Je pense aussi que sans tout ce vote tactique, il y aurait eu une victoire claire pour le RN. Certains peuvent penser que cela serait bien, d'autres que ce serait mal, mais la réalité est que c'était un choix entre empêcher le RN et le chaos qui a suivi, ou permettre au RN de passer et d'avoir son tour au gouvernement.

Au lieu de les laisser passer, nous nous trouvons maintenant dans une situation où ils sont plus susceptibles que jamais de gagner en 2027 - "Ce n’est que partie remise", a déclaré Marine Le Pen.

Quant à la rhétorique des médias traditionnels, le MSM a fait passer le RN pour un parti d'extrême droite, en les comparant aux national-socialistes d'Allemagne des années 1930 et 1940... mais est-ce vrai ? Ils semblent simplement être un parti qui veut mettre les intérêts de 90 % de l'électorat qui ont le français comme première langue et culture avant ceux des vagues d'immigrants, légaux et certains illégaux. L'objection à cela est que beaucoup de ces immigrants sont détenteurs de passeports français, certains sont binationaux, et que l'État agissant pour réduire leurs droits est une idée fondamentalement apartheid et contre l'idée libérale que nous sommes tous créés égaux et avons les mêmes droits à "la vie, la liberté et la recherche du bonheur".

Ainsi, je caractériserais le second tour en France de la même manière que les élections au Royaume-Uni : il s'agit de l'électorat rejetant l'incumbent plus que toute autre chose.

En fait, il est possible de diviser l'électorat en trois groupes, une répartition socio-économique, et d'identifier ceux qui rejettent l'incumbent - cela pourrait suggérer une coalition possible d'intérêts comme solution à l'impasse actuelle.

A. **Urbain**, vivant dans des grandes villes comme Paris, Lyon et Marseille. Ces électeurs ont accès à de meilleures infrastructures, éducation et opportunités d'emploi. Ils sont généralement plus cosmopolites et soutiennent des politiques progressistes, incluant l'immigration et l'intégration européenne, et au Royaume-Uni, le néolibéralisme (souvent appelé Woke).

Il y a aussi l'élite de la gestion et de l'exécutif, vivant également dans les zones urbaines où se trouve le travail, mais des professionnels à haut revenu, des cadres d'entreprise et des entrepreneurs. Ils tendent à soutenir des politiques pro-entreprises, des réductions d'impôts et la dérégulation économique.

Ces groupes s'alignent davantage sur les partis centristes ou centre-droit comme le parti Renaissance de Macron.

B. **Rural**, l'équivalent français des laissés-pour-compte de la Rust Belt américaine, vivant dans les villes et villages des provinces, en dehors des grandes conurbations, des grands centres urbains. Ils ont des problèmes économiques, comme de mauvaises perspectives d'emploi et une croissance économique plus lente. Ces électeurs sont souvent plus conservateurs et nationalistes, avec des préoccupations sur l'immigration et la mondialisation.

C'est là que le Rassemblement National trouve sa principale base, en raison de son positionnement anti-immigration, anti-mondialisation et de ses promesses de revitaliser les économies rurales. Le mécontentement ici pourrait engendrer davantage de protestations des gilets jaunes.

C. **L'Alliance de gauche** regroupe une gamme diversifiée d'électeurs, allant des jeunes professionnels urbains (coucou), aux ouvriers dans les centres industriels et aux étudiants des lycées et universités.

Leurs valeurs résident dans la justice sociale, la protection de l'environnement et les droits des travailleurs. Ils sont souvent très critiques envers les politiques économiques néolibérales et favorisent une intervention accrue du gouvernement dans l'économie.

Le Nouveau Front Populaire, composé de partis comme La France Insoumise et des socialistes modérés, reçoit un soutien important de ce groupe.

Cette division tripartite résulte d'une analyse des facteurs économiques et sociaux, mais que se passerait-il si nous divisions en classe dirigeante et gouvernée ? Si l'on voit le conflit comme étant entre une élite mondialiste qui se soucie plus d'elle-même que de ses peuples, et des peuples qui se regroupent sous un parapluie socialiste, il suffirait de diviser les dirigeants des peuples entre ceux qui sont internationalistes et ceux qui sont nationalistes.

Cela aiderait à comprendre pourquoi le RN a subi un tel déluge dans les médias traditionnels - parce qu'ils ne soutiennent pas les néocons mondiaux - une position également pro-négociation et anti-ventes d'armes pour l'Ukraine et Israël.

Ainsi, vous pourriez penser qu'une alliance est possible entre la gauche et la droite sur le terrain commun du rejet des politiques pro-mondialistes, pro-immigration, pro-guerre du centre et du manque de soutien du centre pour "le peuple". Mais bien qu'il soit vrai qu'il est plus facile de s'accorder sur les choses que vous n'aimez pas, comme la mondialisation et le protectionnisme économique, il est plus difficile de s'accorder et de mettre en œuvre des choses que vous aimez, comme l'immigration (la gauche et le centre ont tous deux une vision d'un monde sans frontières, bien que pour des raisons différentes).

Ainsi, en plus de cette manœuvre de vote tactique, le RN a également souffert de toute la couverture médiatique négative inspirée par les élites du MSM, qu'on peut appeler propagande.

La fracture se situe là où chaque parti se sent "chez lui". Le RN croit en des frontières et l'idée d'un état-nation avec un peuple - les Français - avec un intérêt national français et une culture et une identité françaises, dont ils sont fiers. C'est une attitude politique et sociale qui favorise l'égalité et la fraternité et trouve son foyer - c'est là que réside le problème - dans l'état-nation ou l'internationale prolétarienne des travailleurs.

Alors que dans cette vision de "élite et peuple", l'élite est pour des frontières ouvertes, la liberté économique, le mouvement du capital là où les rendements sont les plus élevés, en d'autres termes pour une intégration accrue dans des entités supranationales comme l'UE - c'est la mondialisation. C'est une attitude économique qui favorise la liberté et l'égalité et trouve son foyer dans l'Ordre américain.

Je pense que fondamentalement, l'establishment essaie de nous faire vivre dans un monde en noir et blanc : "si vous n'êtes pas avec nous, vous êtes contre nous", mais la réalité est plus nuancée. Il existe maintenant de nombreux centres de pouvoir plus petits et au lieu que des opinions opposées déclenchent la violence ou le conflit, elles devraient être considérées comme une opportunité de coopération et de consensus et peut-être même de gouvernement de coalition... mais cela n'est certainement pas dans l'esprit des députés de l'Assemblée nationale, pas pour le moment.

Une solution à ce chaos total en France serait que Macron choisisse un premier ministre du centre, et que des dossiers pour chacune des politiques identifiées dans le tableau ci-dessus soient confiés à différentes directions de l'Assemblée. Ces directions, chacune maintenant avec un ministre dans un cabinet, devraient travailler sur leur dossier et revenir avec des propositions à voter à l'Assemblée nationale.

Cela pourrait fonctionner, une fois que les députés réaliseraient que s'ils votent contre tout le monde, alors tout le monde votera contre eux. En d'autres termes, les députés seraient obligés de travailler ensemble de manière transpartisane, dans un esprit de coopération pour que tous les différents intérêts et voix du pays puissent être entendus et, dans un esprit de tolérance (c'est-à-dire de respect pour les intérêts des autres), trouver une place à l'Assemblée. Rappelons que près de 40 % de l'électorat en a vraiment marre car il n'est pas représenté, et il y a ceux qui ont voté non pas pour ce qu'ils voulaient, mais pour ce qu'ils ne voulaient pas : le pays est en confusion et il y a le chaos au parlement.

Pour information, voici ci-dessus les politiques de la gauche, du centre et de la droite, selon les domaines politiques que j'ai identifiés. Bien sûr, ces domaines, ou questions, ne sont pas gravés dans le marbre, les priorités peuvent changer, en effet le programme de la gauche a été élaboré en quelques jours seulement après l'annonce choc des élections par Macron. Et bien sûr, un programme de politiques n'est pas nécessairement destiné à être mis en œuvre - il y a de nombreux obstacles à l'exécution, notamment comment elles seront financées, étant donné l'état des finances publiques de la France.

Thursday 11 July 2024

COMBINING PROPORTIONAL REPRESENTATION AND DIRECT DEMOCRACY

11 July 2024

1. Introduction

- Proportional Representation (PR) and Direct Democracy are two distinct concepts in political systems.
- Focus of this article: Understanding their definitions, mechanisms, and differences.

2. Proportional Representation (PR)


2.1 Definition

- Electoral System: PR is a type of electoral system where seats in a legislature are allocated based on the proportion of votes each party receives.

2.2 Mechanisms

- Party Lists: Voters select a party, and seats are distributed according to the percentage of votes each party gets.
- Thresholds: Some systems have a minimum vote percentage threshold to gain representation.
- Multi-Member Districts: PR typically uses larger electoral districts that elect multiple representatives. This is PR at the level of the constituency, not the nation.

2.3 Examples

- Countries: Many European countries, such as Germany and Sweden, use PR systems.
- Outcome: Encourages multi-party systems and coalition governments.

3. Direct Democracy

3.1 Definition

- Governance System: Direct democracy is a form of government where citizens directly participate in decision-making processes.

3.2 Mechanisms

- Referendum: Citizens vote directly on specific laws or policies.
- Initiatives: Citizens can propose new laws or amendments, which are then voted on directly.
- Recall: Citizens can vote to remove elected officials before the end of their term.

3.3 Examples

- Countries and Regions: Switzerland is known for its extensive use of direct democracy. Some US states use referendums and initiatives.
- Outcome: Empowers citizens to have a direct say in governance, bypassing representatives.

4. Key Differences

4.1 Representation vs. Direct Participation

- PR: Focuses on fair representation of political parties in the legislature based on vote share.
- Direct Democracy: Emphasises direct participation of citizens in decision-making processes without intermediary representatives.

4.2 Implementation

- PR: Used in legislative elections to ensure proportionality in representation.
- Direct Democracy: Used in specific policy decisions, lawmaking, and recalls, allowing citizens to vote directly on issues.

4.3 Government Structure

- PR: Leads to representative democracies where elected officials make decisions on behalf of the people.
- Direct Democracy: Allows citizens to make decisions directly, often complementing representative structures.

5. Benefits and Challenges

5.1 Proportional Representation

- Benefits
  - Fairer representation of diverse political views.
  - Encourages coalition-building and collaboration.
- Challenges
  - Can lead to fragmented parliaments.
  - Potential for unstable coalitions.

5.2 Direct Democracy


- Benefits
  - Empowers citizens and increases political engagement.
  - Ensures that specific policies reflect the will of the people.
- Challenges
  - Supports short-term thinking: an be influenced by populism and short-term thinking.
  - Requires an informed electorate to make sound decisions.
 - Rational ignorance. When cost of acquiring new information outweighs benefits, voters do not acquire it and become rationally ignorant. Average voters spend <3 minutes per proposition!
 - Bare majoritarianism. Representative democracy can create more consensual coalitions, rather than DD's bare majority rule. Should DD give majoritarian votes on minority rights?

 - 'Lock-in effect'. DD system makes BIG changes to the governance system without considering long-term effects. Reversing them requires returning to the ballot box, costing much additional money and time.

6. Conclusion

- Complementary Roles: PR and direct democracy can complement each other, combining fair representation with direct citizen participation.
- Contextual Application: The suitability of each system depends on the political, social, and cultural context of a country.

Glossary of Terms:

- Proportional Representation (PR): An electoral system where seats are allocated based on the percentage of votes each party receives.
- Direct Democracy: A form of government where citizens directly participate in decision-making processes through referendums, initiatives, and recalls.
- Referendum: A direct vote by citizens on a specific law or policy.
- Initiative: A process where citizens propose new laws or amendments for a direct vote.
- Recall: A procedure allowing citizens to remove elected officials before the end of their term.



UK ELECTION RESULTS 2024

11 July 2024


1. Labour's Victory and the Electoral System

- Labour's win is exaggerated due to the electoral system.
- Voters rejected the Conservatives but didn't fully embrace Labour.

2. Conservative Party's Decline

- Conservative support dropped to 24%, the lowest ever.
- The party now has only 121 MPs, a historic low.
- Support fell most in their defended seats.
- Reform UK's 15% vote share weakened Conservative strongholds.

3. Impact of Reform UK

- Reform UK gained 15% of the vote, winning five seats.
- The rise in Reform support, especially in Conservative-held seats, significantly hurt the Tories.
- Nigel Farage's campaign efforts eroded Conservative support further.

4. Tactical Voting

- Voters chose Labour or Liberal Democrats strategically to defeat Conservatives.
- Labour support rose by six points in Conservative-contested seats.
- Liberal Democrats saw a nine-point rise where they were the main challengers.

5. Labour's Vote Share

- Labour won 35% of the vote, less than previous leaders Corbyn and Blair.
- This is the lowest vote share for a majority government in history.

6. Voter Turnout

- Turnout dropped by eight points to 60%, the second-lowest since 1885.
- Sharpest drop in seats where Labour polled well in 2019.

7. Disproportional Outcome

- The election result highlights the discrepancy between vote share and seats won.
- Labour's exaggerated strength in Commons may spur debate on electoral reform.

8. Challenges for Labour

- Labour's stance on Gaza and its tenure in Wales cost support, especially in Muslim-majority areas.
- To maintain power, Starmer needs to prove his party's capability to handle their new responsibilities.

9. Comparison of Parties

- Reform had a 14% vote share but only won five seats.
- Liberal Democrats, with a 12% vote share, secured 71 seats.
- This discrepancy underscores the disproportionality of the electoral system.

10. Conservative support fell most in their defended seats

1. Meaning of "Defended Seats"

- Definition: "Defended seats" are constituencies currently held by a party that they are trying to retain in an election.

2. Support Fell in Defended Seats

- Impact on Conservatives: The Conservative Party experienced the largest drop in voter support in constituencies they were defending.
- Reason: The disappointment with the results of 14 years of Tory rule was more significant in areas where the Conservatives had previously been relatively strong.

3. Contributing Factors

- Competition from Reform UK: Reform UK gained significant support, particularly in Conservative-held areas, weakening the Conservative vote.
- Voter Fatigue: As above, voters in these constituencies were likely more dissatisfied with the incumbent Conservatives, leading to a greater shift away from the party.

4. Electoral System Impact

- First-Past-the-Post: This system amplifies the loss in defended seats, leading to a significant reduction in the number of seats held by the Conservatives despite the overall vote share.


Wednesday 10 July 2024

SUCCESSFUL STOCK PICKING STRATEGIES

10 July 2024

BOOK SUMMARY
INVEST

Guide to a successful stock picking process

 

Step Description
1 Identify Market Trends
2 Fundamental Analysis
3 Company Research
4 Valuation
5 Technological and Innovation Focus
6 Monitor Corporate Activity
7 Diversification
8 Risk Management
9 Continuous Learning
10 Patience and Discipline

Plan
In part A, we will summarise the book by Simon Thompson published in 2018.
In Part B, we will draw out the step by step guide to the process, outlined above.
In Part C, we will detail the original process guide from the earlier work published in 2013.
 In Part D, we will then compare the two guides and identify significant improvements, giving the reader new points to focus on.



A. Summary of Successful Stock Picking Strategies, 2018.

1. Introduction
- Simon Thompson is a recognised expert in small-cap stocks, having consistently outperformed the market with his Bargain Shares Portfolios in Investors Chronicle.

2. Core Strategies
- Big Picture Investing: Emphasises understanding broader economic and technological trends to identify promising investment opportunities.
- Technological Investments: Highlights the importance of investing in companies at the forefront of technological innovation, such as Manchester & London, a technology-biased investment trust.
- Corporate Activity: Identifies companies likely to be taken over, which can provide substantial returns for investors.

3. Case Studies
- The book includes 26 detailed case studies explaining the rationale behind successful investments. These case studies provide practical insights and a step-by-step guide on applying these strategies.

4. Practical Insights
- Thompson shares his criteria for selecting stocks - focus on fundamentals such as strong cash flow, growth potential, and the ability to capitalise on emerging trends.

5. Performance Record
- Thompson's portfolios have delivered impressive returns, with notable examples like a 46% gain in his 2016 portfolio over two years and a 30% increase in his 2017 portfolio within 12 months.

6. Awards and Recognition
- Simon Thompson has been awarded the Small Cap Journalist of the Year Award multiple times, underlining his expertise and success in stock picking.

B. Summary of Simon Thompson's Step-by-Step Guide, 2018

1. Identify Market Trends
   - Understand the Bigger Picture: Focus on economic and technological developments.
   - Spot Emerging Sectors: Identify industries poised for growth, such as technology and renewable energy.

2. Fundamental Analysis
   - Evaluate Financial Health: Examine company balance sheets, income statements, and cash flow statements.
   - Profitability Metrics: Look at earnings per share (EPS), return on equity (ROE), and profit margins.
   - Debt Levels: Assess debt-to-equity ratios to ensure manageable debt levels.

3. Company Research
   - Management Quality: Research the track record and expertise of the company's leadership.
   - Competitive Advantage: Determine if the company has a sustainable competitive edge (e.g., patents, strong brand).

4. Valuation
   - Price-to-Earnings Ratio (P/E): Compare the company’s P/E ratio to industry averages and historical values.
   - Price-to-Book Ratio (P/B): Assess the company's market value relative to its book value.
   - Discounted Cash Flow (DCF): Estimate future cash flows and discount them to present value.

5. Technological and Innovation Focus
   - Adopt Early: Invest in companies leveraging new technologies and innovations.
   - Sector-Specific Drivers: Identify key drivers within sectors, such as advancements in AI for tech companies.

6. Monitor Corporate Activity
   - Mergers and Acquisitions (M&A): Look for companies that are likely takeover targets.
   - Insider Buying: Track insider transactions as a signal of confidence in the company’s future.

7. Diversification
   - Portfolio Management: Spread investments across various sectors and companies to mitigate risk.
   - Rebalancing: Regularly review and adjust the portfolio to maintain the desired risk-reward balance.

8. Risk Management
   - Set Stop-Loss Orders: Protect against significant losses by setting predetermined sell points.
   - Position Sizing: Allocate capital wisely to avoid overexposure to any single investment.

9. Continuous Learning
   - Stay Informed: Keep up with financial news, market trends, and new investment strategies.
   - Review Past Trades: Analyse previous investments to learn from successes and mistakes.

10. Patience and Discipline
   - Long-Term Focus: Prioritise long-term growth over short-term gains.
   - Emotional Control: Avoid making impulsive decisions based on market volatility.

By following these steps, investors can build a systemat approach to stock picking and aim to achieve consistent long-term success in their investment portfolios.

C. Summary of Stock Picking for Profit, Step-by-Step Guide, 2013
Skip the 2013 book summary in order to focus on the guide.

1. Market Research
   - Trend Identification: Focus on industries with strong growth potential.
   - Economic Indicators: Monitor economic conditions that affect market sectors.

2. Company Analysis
   - Fundamental Analysis: Evaluate financial health through balance sheets, income statements, and cash flow.
   - Management Evaluation: Assess the expertise and track record of the company’s leadership.
   - Competitive Advantage: Identify unique strengths that give the company a market edge.

3. Valuation Techniques
   - Price-to-Earnings Ratio (P/E): Compare the company’s P/E ratio with industry peers.
   - Discounted Cash Flow (DCF): Project future cash flows and discount them to present value.

4. Risk Management
   - Diversification: Spread investments across different sectors to mitigate risk.
   - Stop-Loss Orders: Set predetermined sell points to limit potential losses.

5. Continuous Monitoring
   - Regular Reviews: Keep track of the company’s performance and market conditions.
   - Adjustments: Make necessary changes to the investment portfolio based on ongoing analysis.

D. Advances in the 2018 Guide Compared to the 2013 Guide

2013 Guide (Stock Picking for Profit)
   - Focus on Fundamentals: Emphasis on traditional financial metrics and company-specific analysis.
   - Case Studies: Use of historical examples to illustrate successful strategies.

2018 Guide (Successful Stock Picking Strategies Guide)
   - Technological Focus: Increased emphasis on identifying companies leveraging new technologies.
   - Sector-Specific Analysis: Detailed analysis of specific sectors, particularly technology, and how they drive stock performance.
   - Corporate Activity: Highlighting the importance of corporate activities like mergers and acquisitions.
   - Broader Economic Trends: Greater consideration of macroeconomic trends and their impact on stock performance.





Further info
Wednesday, December 7, 2022