Duly Noted: EU Forces Switzerland to Control Border With Liechtenstein
From the desk of George Handlery on Sat, 2008-10-04 12:21

1. Russia claims to have a right to the privilege that there be no NATO member on her borders. Translated into plain English this means that her neighbors – mostly once part of the Crimson Empire – have only a limited sovereignty.
2. Europe – but not only the Continent – needs to find partial alternatives to Russian gas deliveries. Energy dependence is not a balance of payments issue but a security matter. One supply line providing relief from the current over reliance on Russia is the planned Nabucco line. (The project would transport gas from non-Russian sources through territories that are not controlled by her.) In its infinite wisdom the Hungarian government acted in accordance with an old reflex of the ruling Socialists. It agreed to let a Russian pipeline designed to compete with Nabucco to traverse its territory.
3. The record supports the generalization that dictatorships are tempted to threaten war. This tends to prompt democracies to save the peace by giving in. If nothing else, this type of crisis management ultimately triggers new demands and new threats. There is a worrying inclination to repress the recall of experiences that confirm this unpleasant lesson.
4. The UN5+1 decided, under Russian pressure, not to apply new sanctions on Iran. Tightening the shackles would have responded to her perseverance on the course that provoked earlier measures. These were meant as a warning to cease and desist. Instead, a statement was boldly hurled at the problem. At least Russia was satisfied by the results. She also added that further sanctions would not be imposed in the future. The solution will have to be a diplomatic one. To make the matter clear, the significance of the current sanctions was said to be that they help to “avoid any military action.” This amounts to a blanc check to Tehran whose risks in the pursuit of an otherwise risky endeavor are reduced. While the UN is condemned to do nothing, Tehran has reason to feel safe in doing whatever it pleases. Thereby the room to wiggle as one seeks a solution is contracting. With that, the chances grow of having to resort to measures that are outside the box that is currently given.
5. It is possible that the economy, or what the half-informed think of it, will decide the election. By the time of the voting, the turning point (for better or worse) will be behind us. While the economy dominates the daily politics of the recent past and the present, the struggle against terror will determine the future. We can ignore this but we cannot make the challenge go away.
6. Whatever the merits or demerits of the 700 billion bailout, the way it is done is, hardly accidentally, not optimal. The principle of “if it is worth doing it is worth doing well” is violated. The failure of financial institutions had largely been caused by a lack of confidence. What the money is needed for is confidence building to stop the run on banks and the stampede out of share holding. The large sum was meant to smother doubts. The clearer the commitment to back up the tottering system the greater the effect of the funds that are to be committed to the effort. Authorizing the money in separate packages and involving Congress in the process will leave some of the panicked concerned. Creating question marks and opportunities for future grandstanding might be good electioneering. At the same time, it is a less than effective policy.
7. Some legislators expressed their reluctance to accept Paulson‘s pleas to act quickly and decisively to stem the crisis. Some argued that the Iraq war was based on a faulty assumption. Therefore, the plea for a speedy bail out is also based on a hoax. Even if one accepts the first allegation, the second does not follow logically. The facts are undisputed and generally accessible – only the conclusions to be drawn from them are, as the House vote on the 29th shows, subject to debate. Those not understanding this and unable to assess the crisis of confidence on their own might lack real world experience. Could it be that they have spent too much time as community organizers?
8. A globally valid lesson to be learned of the crisis: make no speculative investments with borrowed money. Do not finance high-risk financial acrobatics with the funds of those with whom you have a fiduciary relationship. If as a banker, you still speculate instead of venturing, then use your own money and not that of the depositors.
9. If one looks beyond the numbers, the economic crisis is in Europe more threatening than in the US. This can be pretended because America is more flexible when having to deal with dislocation than is Europe. Alitalia, the Italian national airline serves an illustration. The overblown undertaking could have been saved early and with lesser losses. However, the trade unions, with a finger on the enterprise’s throat, have prevented the transformation that was the precondition of saving the patient’s life. The unions wanted to keep all jobs, which meant that not only some jobs but also all jobs were in danger of being lost.
10. Evo Morales whose qualification for leadership is summed up by his ancestry has opined that the world is locked in a struggle between the rich and the poor and between capitalism and socialism. The man is right without knowing it. The question to be decided is, indeed, whether we will have poverty with socialism as the palliative, or capitalism and general wealth. In the first case, some will be at peace because all others are equally bad off. In the latter scenario, many will be discontented because of the unequal living standards that reflect disparate abilities.
11. The unrestrained immigration of hostile entrants raises a question: to where will the hosting natives go once the intolerant minority they harbored has taken power. (Far fetched? Not at all. There are a number of areas that have been lost by the original majority to what were once gracefully accepted refugees.)
12. Apparently, under the guns of warships, Somali pirates have netted a Ukrainian transport vessel with thirty-three advanced tanks, other goodies and lots of ammo. It is irresponsible to let such a cargo traverse such troubled waters without any military protection. After the hijack the ship should have been sunk. If that cargo gets into the wrong hands, many people will have to die once it is put to its intended use.
13. Hard to believe. The last soldier of Liechtenstein (currently about 30,000 inhabitants) has died around 1896. (Cause: old age.) Since generations, Switzerland controls in behalf of the principality and her own cause the customs on the Liechtenstein-Austrian border. Only flags mark the border with the “giant” on the west, Switzerland, whose currency the Principality uses. In the meadows, you detect decaying tank traps marking the boundary. In WW2, the Swiss, themselves under pressure, did not guarantee Vaduz’ sovereignty against the Reich. Now something is happening that would be funny if it would not be serious. As of 2009 Switzerland is in the Schengen system. Therefore, she has no border to be controlled toward the surrounding European Union. Liechtenstein will only join in 2010. This means in theory that, along the long forgotten demarcation line, the Swiss have for a year what the EU considers being an “outside” border. This is so even if they as well as Liechtenstein are tiny islands in the middle of the EU Sea. That has to be as rigorously controlled as the Polish-Byelorussian or the Spanish-Moroccan border. The senseless exercise will cost about $5,000,000. Says the government. So figure the real expenses at double that. This might be a pittance but even those measly five mills could be put to a better use than the control of something that does not need to be checked.
14. One more thing! Discussing corruption at a dinner party abroad, a casual acquaintance, had a “good story” to contribute. He had been traveling in a Latin American country. Suddenly a patrol car stopped him. Since he had been instructed, he inserted a bill into the folder that protected his license. It amounted to more than the going rate. The cop checked the material and told him “I let you go”. He answered, “Thank you, but could you give me back thirty?” The officer checked his purse and said “sorry, I have no change”. Apparently, there is honesty even among those who survive by resorting to crookedness.
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