Transat 650 Sailing race reaching Madeira; TVI television Interview with Portuguese President Aníbal Cavaco Silva; EU plans tourism boost; EU wants to create a certified quality label for tourism activities;

EU, Portugal and Madeira News from Paul Abbiati:

Transat 650 2011: Bertrand Delesne: best of action tout en musique!

From Wikipedia:

“Mini Transat 6.50 also known as Transat 650 is a solo transatlantic yacht race that starts in Western France and ends in Brasil covering over 4000 miles with single stop in the Canary Islands. The yachts are very small with respect to the race, and are sanctioned by the Miniclasse 6.50 organization. Miniclasse 6.50 closely monitors the craft but applies only minimal design restrictions such as length (6.5m), beam (3.0m), draft (approximately 2.0m), and material specifications[1], making the mini transat 6.50 an open design.

The race will run this year (2011) starting on September 1st, and runs on odd-numbered years. Sailors must qualify by covering one of two specified 1000 mile courses along with having 1000 miles of ocean racing experience, much of it solo…”

Wiki link:

From the Official Tourism Website:

“The longest transatlantic race organized by Transat Charente-Maritime/Bahia 6.50 departed last Sunday, September 25th from the French port of call of La Rochelle.

79 sailors from 17 different countries

This event gathers 79 sailors from 17 different nationalities.

The first stage of this event which culminates in Funchal, is scheduled for October 2nd .

According to its participants this is “an experience of a lifetime and also the one of the greatest challenges in races of the kind.”

Club Naval do Funchal will host all of the participating skippers during a week, prior to the departure of their small boats (up to 6.5 meters) in a journey of about 22 days,and which come to its end at Salvador de Bahia.

For further information visit the official website:

EU plans tourism boost; EU wants to create a certified quality label for tourism activities;

TVI television Interview with Portuguese President Aníbal Cavaco Silva

From Portugal Daily View

“In last night’s interview to TVI television, Portuguese President Aníbal Cavaco Silva said 2012 will be very difficult, but he hopes to see recovery signs in the second half of the year. The president also said he considers that the cut to the Single Social Tax accompanied by a rise in VAT is a mistake.

The President of the Republic Aníbal Cavaco Silva said he would convene the Council of State in October in order to discuss the political, economical and financial situation in Portugal.

In the interview, the president admitted being surprised with the €2bn national budgetary slippage found by the current government.

The president of the republic issued several warnings about the serious situation Portugal was in. I was criticised several times (…)”, said Cavaco when questioned about how he let the situation get this far. The president added that his “appeals were not heard, or someone overlooked them”.

image from Diario Newspaper

The situation in Madeira

Regarding the situation in Madeira, Cavaco Silva said he knows that Friday Prime Minister Pedro Passos Coelho will be addressing the autonomous region’s fiscal situation in the Parliament and admitted that it will not be possible to reveal the restructuring plan for Madeira before the regional elections. However, this will not compromise the transparency of the electoral act (elections will be held 9 October), because “people from Madeira will get to know (…) the efforts demanded in the future.”

Cavaco Silva also commented on the cut to the Single Social Tax backed by IMF-EU troika, saying that the “generalised reduction of the employers’ contributions to Social Security will have to be accompanied by a risein VAT, which is a mistake”. Privatisations of public assets were also discussed. Cavaco Silva refused thepossibility of a selling off and alerted to the need of caution when “elaborating the privatisation process”.

Throughout the interview, the president stated that “2012 will be a very difficult year”, but said he hopes to seesigns of economic and employment recovery in the second half of next year. Cavaco Silva also said that thethree years given to Portugal to fulfil the requirements of the bailout “are tight and demanding”, emphasising that the country “will depend heavily on the international conjuncture”.

27 thoughts on “Transat 650 Sailing race reaching Madeira; TVI television Interview with Portuguese President Aníbal Cavaco Silva; EU plans tourism boost; EU wants to create a certified quality label for tourism activities;”

  1. In the late 50s and 60s I had a wonderful time.
    Properly educated.
    Plenty of jobs to go to.
    Plenty of fun to be had.
    Plenty of hope for the future.
    I didn’t have time to sleep properly until I was 26.
    The energy levels in all spheres of life were electric.
    What happened?
    Who messed it up?
    Why cannot the youth of today have the same opportunities as I had?
    Was it just optimism?

    In his commentary, Madison Ruppert continues, explaining that those in the financial sector are focused on one thing, which is to make more money – whether markets go up or down, whether people on the street get crushed, whether the economy thrives or dies:

    I’ve never heard a trader come right out on mainstream media and lay it out in such a plain way. Indeed he is correct, a traders job is to make money. Period.

    A trader need not worry about what will be done to fix an economic crash because as long as they are making money, they couldn’t care less.

    This is something that the mainstream media likes to pretend is not the case, as though investors actually have an interest in keeping the stock market and the global economy afloat.

    This is simply untrue as Rastani reveals.

    Traders and investors are just like corporations, they are only interested in the bottom line. If this means profiting off of an economic downturn while their neighbors are foreclosed on and their entire nation is robbed blind then so be it. As long as the cash keeps coming in, who cares?

    Speaking of the current global economic meltdown unfolding around us, Rastani says, “I’ve been dreaming of this one for three years.”

    He also reveals the mindset of many a trader in saying, “I go to bed every night, I dream of another recession. I dream of another moment like this.”

    He then gives the example of the market crash of the 1930s which was not only a market crash but an opportunity for some people to make a lot of money.

    After his frank statements the presenter says, “If you could see the people around me, jaws have collectively dropped at what you’ve just said.” I guess she wasn’t expecting him to tell the truth.

    We may look at Mr. Rastani as a greedy Wall Street psychopath whose sole purpose in life is to profit from the misery of others, but keep in mind he’s not alone. At least he came out and told the truth, no matter how ethically or morally deprived it may be. Now consider that there are thousands of people just like him, many of them in much higher positions within the financial and economic infrastructure – people who make the decisions that affect the lives of billions of people worldwide. Like Mr. Rastani, they don’t care what happens to the pleebs. Their concern is only themselves and their direct interests.

    Alesio Rastani’s candid musings should be taken seriously – because this is what’s going on behind the scenes. Short term profit (money and power) is the motivation for him and others – the stability of the system be damned.

    There is no single person who we can blame for what has happened and what will happen in the future. The system is a monster and it is the collective consciousness, which in this case is a culture of greedy me-first thinking, that is eating up our economy and financial systems like the cancer Rastani mentions.

    They will not stop until the host is dead.

    Take Rastani’s advice, because he, like many of us, understands that the system we have come to know, the system we have entrusted to protect our assets and our lives, is nothing but a sham designed for the few to profit while the majority suffer.
    This economic crisis is like a cancer. If you just wait and wait thinking this is going to go away, just like a cancer it’s going to grow and it’s going to be too late.

    What I would say to everybody is… get prepared.

    This is not a time right now for wishful thinking that the government is going to sort things out. The governments don’t rule the world. Goldman Sachs rules the world. Goldman Sachs does not care about this rescue package, neither do the big funds.

    The first thing people should do is protect their assets. Protect what they have. Because, in less than 12 months, my prediction is, the savings of millions of people are going to vanish. And, this is just the beginning.

  3. I’ve always wondered but never asked at the bank: do funds deposited by ex-pats have the same bank guarantee up to 100,000 as funds deposited by Portuguese nationals? and is that per account or per total funds in that bank?

    I know when the Irish banks went down, the Irish were covered but the Dutch and Germans who had money in Irish banks were not.

    Anyone know?

  4. Not that i disagree with much you say Tom, but here is the full story:


    Replace the **** with .com to use this link

  5. well,

    it is bad and going on just by patchy work and kicking the down the road.
    rastani is maybe not a profesional but still telling the truth more or less.
    if not him just read the report below/long but worth it. in short yes very bad. one can observe panic on the top level of eu officials (just behind the camera).
    next 48 months is going to be though tom

    Denial. Denial is safe. Comforting. Religiously and relentlessly abused by politicians who don’t want nor can face reality. A word synonymous with “muddle through.” Ah yes, that “muddle through” which so many C-grade economists and pundits believe is the long-term status quo for the US and the world just because it worked for Japan for the past three decades, or, said otherwise, “just because.” Well, too bad. As the following absolutely must read report, which comes not from some trader of dubious credibility interviewed by BBC, nor even from an impassioned executive from a doomed Italian bank, but from consultancy powerhouse Boston Consulting Group confirms, the “muddle through” is dead. And now it is time to face the facts. What facts? The facts which state that between household, corporate and government debt, the developed world has $20 trillion in debt over and above the sustainable threshold by the definition of “stable” debt to GDP of 180%. The facts according to which all attempts to eliminate the excess debt have failed, and for now even the Fed’s relentless pursuit of inflating our way out this insurmountable debt load have been for nothing. The facts which state that the only way to resolve the massive debt load is through a global coordinated debt restructuring (which would, among other things, push all global banks into bankruptcy) which, when all is said and done, will have to be funded by the world’s financial asset holders: the middle-and upper-class, which, if BCS is right, have a ~30% one-time tax on all their assets to look forward to as the great mean reversion finally arrives and the world is set back on a viable path. But not before the biggest episode of “transitory” pain, misery and suffering in the history of mankind. Good luck, politicians and holders of financial assets, you will need it because after Denial comes Anger, and only long after does Acceptance finally arrive.
    First, let’s recap why BCG thinks all the alternatives have been exhausted
    We believe that some politicians and central banks – in spite of protestations to the contrary – have been trying to solve the crisis by creating sizable inflation, largely because the alternatives are either not attractive or not feasible:
    Austerity – essentially saving and paying back – is probably a recipe for a long, deep recession and social unrest
    Higher growth is unachievable because of unfavorable demographic change and an inherent lack of competitiveness in some countries
    Debt restructuring is out of reach because the banking sectors are not strong enough to absorb losses
    Financial repression (holding interest rates below nominal GDP growth for many years) would be difficult to implement in a low-growth and low-inflation environment
    Inflation will be the preferred option – in spite of the potential for social unrest and the difficult consequences for middle-class savers should it really take hold. However, boosting inflation has not worked so far because of the pressure to deleverage and because of the low demand for new credit. Moreover the inflation “solution” while becoming more tempting, may come to be seen as having economic and social implications that are too unpalatable. So what might the politicians and central banks do?

    Since the publication of Stop Kicking The Can Down The Road, a number of readers have asked us what would happen if governments persisted in playing for time. To what measures might they have to resort? In this paper, we describe what might need to happen if the politicians muddle through for too much longer.

    It is likely that wiping out the debt overhang will be at the heart of any solution. Such a course of action would not be new. In ancient Mesopotamia, debt was commonplace; individual debts were recorded on clay tablets. Periodically, upon the ascendancy of a new monarch, debts would be forgiven: in other news, the slate would be wiped clean. The challenge facing today’s politicians is how clean to wipe the slates. In considering some of the potential measures likely to be required, the reader may be struck by the essential problem facing politicians: there may be only painful ways out of the crisis.
    At this point BCG goes into the details of why it is long overdue for reality to be finally acknowledged. We will skip this part as any regular readers are all too aware of reality, and how it is masked constantly by the mainstream media and its agents in all walks of life. The truth is far, far uglier than anything anyone in a position of power will tell you because acknowledgment would imply the need to come up with solutions that involve more than merely extending the event horizon for a little longer. Alas, even politicians now realize there is only so far that the can can be kicked.
    There is one thing we would like to bring to our readers’ attention because we are confident, that one way or another, sooner or later, it will be implemented. Namely a one-time wealth tax: in other words, instead of stealth inflation, the government will be forced to proceed with over transfer of wealth. According to BCG, the amount of developed world debt between household, corporate and government that needs to be eliminated is just over $21 trillion. Which unfortunately means that there is an equity shortfall that will have to be funded with incremental cash which will have to come from somewhere. That somewhere is tax of the middle and upper classes, which are in possession of $74 trillion in financial assets, which in turn will have to be taxed at a blended rate of 28.7%.

    And if the prospect that very soon a government near you will force you to hand over a third of your wealth, here is the rest of the terrifying analysis of what will happen to the world in order to get it back in order:
    A Program for the United States
    The situation in the U.S. is different from that of the euro zone and, in a way, would be less complicated to resolve. The U.S. has all the levers with which to address the crisis and would not need to coordinate 17 countries with divergent interest. But some facts would need to be acknowledged before decisive action could be taken:
    In spite of massive intervention by the Fed and the US government, growth remains anemic
    The deleveraging of private households will have to go on for many years
    The real estate market has not yet stabilized. About 11 million US households suffer from negative equity (their mortgage outstanding is higher than the value of their home). And the supply of homes is still in excess by 1.2 to 3.5 million (depending on the data used to estimate this number).
    The US government deficit is not sustainable and will need to be brought to acceptable levels, which will slow growth and amplify the problems of the private sector.
    In spite of a significant weakening in the dollar, the U.S. is still running a trade deficit that cannot be blamed on China alone. It reflects a lack of competitiveness in some key markets and the low proportion of manufacturing in the U.S. economy compared with countries such as Germany and Japan.
    There is a striking similarity between the US and Japan in the development of stock and real estate prices (See chart below). A correlation does not mean causality, but it is a sobering picture should Ben Bernanke and his team fail to reflate the economy.
    The interventions of the Fed, notably the programs designed to buy financial assets, have created a monetary overhang that could be the basis for sizable inflation in the future.
    Addressing the debt overhang.
    The US would also need to reduce the debt overhang of the government, of consumer loans besides mortgages, and of non-financial corporate sector in the same way as in Europe. As exhibit 2 shows, the total debt overhang in the US equals $11.5 trillion or 77% of GDP. In the somewhat unlikely event of the US following the same path that Europe might pursue, a one-time wealth tax of 25% of financial assets would be required. As in Europe, this would also require the following initiatives.
    Cleaning up the banking sector by calculating the losses and recapitalizing as needed – even if it means wiping out existing shareholders.
    Additional taxes on real estate, including an increased capital-gains tax to offset the support for the real-estate market.
    Creating an incentive for corporations to invest in R&D and new machinery by taxing profits not reinvested.
    A commitment by the government to restrict its debt level and to prepare for the increasing costs of an aging population by either limiting benefits or raising the retirement age.
    Addressing the fundamental issues of the US Economy.
    We have argued for a long time that the US economy needs to address some fundamental issues in order to become globally competitive again. In putting an end to muddling through, the government might also embark on a major restructuring of the economy:
    Reindustrialize and grow the share of the manufacturing sector from the current low of 12% of GDP to 20% of GDP . This might then allow a rebalancing of trade flows.
    Revisit income distribution. Most U.S. families cannot make up for their income shortfall with increased credit – and 41 million Americans are officially considered to be below the poverty line.
    Take action to reduce dependency on imported oil by investing in new technologies and modernizing existing infrastructure.
    As in Europe, an administration that truly bit the bullet would take a long-term view and invest more in education.
    All this is still speculation. But history shows that the US economy, like no other, is capable of adjusting and implementing quite radical changes. And in our view, some of the actions described above might be pursued by the US government if things do not improve soon.
    BCG’s conclusion:
    The programs we have described would be drastic. The would not be popular, and they would require broad political coordinate and leadership – something that politicians have replaced up til now with playing for time, in spite of a deteriorating outlook. Acknowledgment of the facts may be the biggest hurdle. Politicians and central bankers still do not agree on the full scale of the crisis and are therefore placing too much hope on easy solutions. We need to understand that balance sheet recessions are very different from normal recessions. The longer the politicians and bankers wait, the more necessary will be the response outlined in this paper. Unfortunately, reaching consensus on
    such tough action might requiring an environment last seen in the 1930s.

  6. Re monies in a standard savings account.
    I am assured by my manager at BPI that these accounts are guaranteed, never mind the status of the investor.
    I shall however be checking again and will ask a wider range of questions.
    I have come to the conclusion that the only way out of Europe’s mess is to revert to national currencies and have all euro debts cancelled, defaulted and forgotten.
    Then start again.

    It is only money
    It is a notional debt.
    It does not really exist.
    The only debts anybody can enforce are the debts of people and firms.

  7. answer re deposit guarantee

    sure it is but……

    If u think u will get your $$$ next day after bank closure or bank holiday u are living in unreal world. simple fantasy land.

    some of the options are:

    u can get after many many months of waiting in line
    u can get piece by piece for years to come
    u maybe have to pay new taxes before withdraw aka a one-time wealth tax.
    in a mean time euro will be goner and u will receive worthless national currency
    etc. etc. etc.

    so do u want to take such a chance????????

    not me for sure

  8. re greece farceA day after we learned that the Greece tragicomedy just gets better and better after it had run out of ink to print tax forms, and hence is unable to collect taxes, and were forced to got over a minute long bout of hysterical laughter having learned that Greece plans on refinancing its rolling debt (which trades at over 100%) with Century Bonds, no seriously and this under the sage advice of BNP Paribas, Deutsche Bank, HSBC and Lazard, we now get the latest update in this progression of relentless Banana Republic upgrades after learning that the Troika is unable to conduct its much needed inspections of Greek deficit cut progress due to sit ins by protesting government workers at 8 ministries. From Kathimerini: “The troika has been in Athens since Wednesday but its monitoring of Greek finances is running into a variety of problems, as besides the disagreement with the government on a number of issues, the representatives of the country’s international creditors had to deal with sit-ins at the building they were about to visit on Thursday. Public sector employees blocked the entrance to the Finance Ministry and the Hellenic Statistical Authority (ELSTAT) in protest at the planned measure of putting thousands of them on labor standby status.” Seriously what else? News that government workers start shredding debt indentures for fun? In the meantime the Troika is having official meetings with what’s left of the government at the local Starbucks..the government has resorted to withholding the salaries of state employees who have outstanding tax debts, provided their monthly salary exceeds 1,000 euros. Already 20 civil aviation authority employees have had their salaries withheld.

  9. Martin least you enjoyed your youth. All the hard work by our for bearers has gone down the pan. The System where the rich made the money the poor asked for higher wages due to reasons like cost of living. They spent there money on British goods that went back to bosses. You arrived at pension age, you retired to make way for youths. They made the money to go into pensions and it went on. Now the clock been taken apart, they got bits no one has any ideas what to with the bits. They no recycling of wealth anymore only to the rich. Politics is no more as they follow each other. Last you had the good days Eh!

  10. The Meteorological Institute recently issued a yellow warning for Madeira, because of the possibility of rain, heavy at times, between 21 pm today and noon tomorrow.

    The forecast of bad weather due to the approaching cold front surface with a moderate to strong activity, associated with a depression in the northwest.

  11. Tom article sums up the situation very succinctly.
    For the past 2 decades the speculators have made fortunes speculating on commodity and share prices forcing up the costs of products and diminishing the returns made by the honest investor.
    The time has come to put a stop to their immoral trades. Perhaps in future commodities should only be purchased by those that accept delivery. A share is an investment in a company and should be purchased as such, and held for an adequate period of time.
    In the meantime I minimise the amount of money I keep in my Portuguese bank account, just enough to pay the monthly standing orders!
    In this turbulent world the £ and $ are safer currencies.

  12. Thanks for posting this interesting article. As we all know when it comes to making money online, most people have staunch opinions about what works and what doesn’t; esspecially the value of ebooks whether for education or business. However, I have always had an open mind. Changes each month require that mindset. When I have the time, I may return to read more of your contributions. How often do you update your pages so I can come back to your site. I do believe that we might share many of the same viewpoints.

  13. When I originally commented I clicked the -Notify me when new feedback are added- checkbox and now every time a remark is added I get 4 emails with the same comment. Is there any way you’ll be able to take away me from that service? Thanks!

  14. It is totally inaccurate what BOB FAW says, tat Patmos belongs to Turkey. (“but by a different John living on the isle of Patmos off what is now Turkey.”). I wonder what fact book has your correspondent used. The Island of Patmos is one of the Greek Islands in Dodecanese.I think a correction is necessary.Apostolos ZoupaniotisPublisher/EditorGreek News

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  16. Believe it or not, most banks enjoy several tiers of rates, so it’s not just one rate. I just this minute applied for a Citibank credit card and on the website were more or less two dozen different Citibank cards, all near different rates and terms. Depending on exactly what type of Visa or Mastercard you want, what features, and depending on what your credit rack up is and what your credit report looks like, you could attain any number of different rates or offers. It’s simply not only one standard rate any more.I’ve seen rates that run the gamut from 0% to almost 32% from duplicate lender.Now Bank of America is even offering a credit card to illegal immigrant, if you can believe that. You don’t even need a social deposit number for that one. I’m going to run down to my nearby Bank of America branch and emergency one.


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