Monthly Archives: December 2014

The first horse

It is a strange day. Yesterday we saw the first mentions of caution, the first sign that there were issues at foot, the US government trying to elate caution towards those phrasing views. In light of 18 trillion of undebated and unconsulted debts, now we see words of caution. So what is going on?

In this light I will actually use the bible as a reference, not in regards to scriptures or in regards to what it could be, but regard that we have a view that has been grown from the past, now regard it to what might be.

The issue is seen in the article ‘Senate report on CIA torture claims spy agency lied about ‘ineffective’ program‘ (at http://www.theguardian.com/us-news/2014/dec/09/cia-torture-report-released). Here we see the first issue: “a milestone report by the Senate intelligence committee on Tuesday that concluded the agency’s use of torture was brutal and ineffective – and that the CIA repeatedly lied about its usefulness“. Really? The CIA being less than honest about its operations? That sounds like nothing we might expect from a government operation, is it? The second quote directly links to the events linking them both “It found that torture “regularly resulted in fabricated information,” said committee chairwoman Dianne Feinstein, in a statement summarizing the findings. She called the torture programme “a stain on our values and on our history”“, you see, perhaps someone wants to take a look back to 2003, but not to America, but to Russia

In early April 2003, we get information to some extent on Akhmad Kadyrov, the Chief Mufti of the Chechen Republic of Ichkeria in the 1990s during and after the First Chechen War, suggested that Russian federal forces are behind breaking into homes at night and abducting people. “People continue to go missing in Chechnya. They are taken away in the middle of the night. Their bodies are not found and they are never seen again” (at http://articles.latimes.com/2003/aug/29/world/fg-chechnya29) Kadyrov said to reporters in Grozny. “Through their crimes, they maintain tension in the republic, and their hands are stained with the blood of innocent people. The force is made up of kidnappers in armoured vehicles. They are a death squad.” Yet, some claim (journalists and experts on Chechnya), that many such abductions are the work of the Kadyrovites – Chechen security police headed by his son, Ramzan Kadyrov.

So who is right? And moreover, we see that from several State Department key figures, there is a question on certain elements of intelligence that came forward as a result to these methods of torture. In addition we see ‘Confessions at Any Cost: Police Torture in Russia‘ a piece written by Diederik Lohman, especially on page 102, where we see Russia and a reference to the Leahy amendment. A U.S. human rights law that prohibits the U.S. Department of State and Department of Defense from providing military assistance to foreign military units that violate human rights with impunity, which should have been the crown achievement of Democratic Senator Patrick Leahy from Vermont, seems such a shame that this application does not apply to the US as such at all.

Here we see the first reference of the White horse of the Apocalypse, Christ mounted on a white horse, appearing as The Word of God. Yet, who is this proclaimer of the word of god? You see, in all fairness Senator Patrick Leahy had in vision assistance under morale strength, I have no indication that he had anything but the noblest intentions in mind and no matter when it all started, these described acts continued for a long time, unmonitored by those claiming that it was counterproductive when the Russians were doing this. The alleged fact in addition we see at http://www.theguardian.com/us-news/live/2014/dec/09/cia-torture-report-released-senate, give a worry as “The CIA and White House had tried to block some or all of the report“, why exactly was the White House blocking this? We need not ask the CIA, as they had plenty to lose, yet what was agreed upon by the White house? Consider the Events of May 25th 2011 “Tonight, President Obama addressed the Nation to announce that the United States has killed Osama bin Laden“, the Intel required could not have been achieved without torture, that much is a fairly accurate statement.

Yet overall the report shows the following “During the brutal interrogations, the CIA was often unaware the information was fabricated.” She told the Senate the torture program was “morally, legally and administratively misguided” and “far more brutal than people were led to believe“, in addition we now get “At least one prisoner died as a result of hypothermia after being held in a stress position on cold concrete for hours. At least 17 detainees were tortured without the approval from CIA headquarters that ex-director George Tenet assured the DOJ would occur. And at least 26 of the CIA’s estimated 119 detainees, the committee found, were “wrongfully held.”“, so as almost 1 in 5 is wrongfully held, how can there be any justification of that what had transpired? I personally see it as an event where the key players were so desperate for results that too many were thrown into this abyss, many wrongfully, when we get back to the first part regarding ‘fabricated information’ we see a need for what some need it to be, versus a majority who desire something to be, the acts against that what is, for the mere ‘show’ of success. How is this in any way, any kind of intelligence? It prolongs the need for a group of people the US should never have needed in the first place.

We now get to the second version of the white horse “the first horseman is called Pestilence, and is associated with infectious disease and plague“, so as the white horse approached, I saw a horse meagre, showing bone and rib, but standing tall holding its rider. As it past the people, any near enough would fall, the swells would give view to the boils and the eyes as they grew white, men devoid of life, but not dead; to suffer as their last breathe left them. The rider, showing sickly with yellow eyes, seated on the horse pointing at those who would then fall down to dying. His bow, would wield the green puslike arrows that could strike near and far in all, making them devoid of life. Without speed horse and rider would move forward for all to fall towards death crossing its path.

The third article linked to this is ‘Shock and anal probe: reading between the redactions in the CIA torture report‘ (at http://www.theguardian.com/commentisfree/2014/dec/09/redactions-cia-torture-report-experts). When we consider the following: “If torture does not lead to actionable intelligence and does not stop terrorist acts, then why use it at all? Shouldn’t we have used traditional, rapport-based interrogation techniques such as the FBI agents who questioned Abu Zubaydah? The suspect was cooperating until the CIA’s contractors started waterboarding Abu Zubaydah in detention for 17 days, until he became “completely unresponsive”“. In addition there is “It’s as if the designers of the torture program deliberately avoided expertise that would have steered them away from coercive interrogation techniques. It makes me question whether the techniques were ever about getting intelligence – or just exacting punishment“, there is an implied issue here. The question I have is as we saw the need for these specialists; we also saw a budget that was suddenly pushed for hundreds of millions. We saw Field intelligence experts, whose value would suddenly double overnight. Is it such a far-fetched notion that this was about a group of people prolonging their gravy train?

Last we need to include “The Senate’s report confirms what we’ve long known: the United States systematically tortured detainees, sometimes to the point of death, and relied on the complicity of health professionals to commit and conceal these crimes“, which beckons another path, how can we rely on a group of people who have proclaimed so much to so many, whilst they were on the inside condoning acts that have never been regarded as humane, or humanitarian as such. In that light, how can any nation be regarded as trustworthy, when there is clear indication that several of its branches were protecting the transgressions they claimed to be inhumane as others performed them. That’s like a drug dealer calling a politician immoral; it is a tainted statement to say the least.

Here we have the final version of the first horse “One interpretation, which was held by evangelist Billy Graham, the American Southern Baptist, who casts the rider of the white horse as the Antichrist, a mere representation of the false prophet, citing differences between the white horse in Revelation 6 and Jesus on the white Horse in Revelation 19“, yet when we consider the head of crowns, whether it be one crown or a head with ‘many crowns’, we must also decide on the view we have of those involved. In my view, there is but one crown, whether it is righteous, or in judgement. We have the crown of our intent and as such we are there for judged by it. In my view there is no option for many crowns, as each crown is regarded as another personification, one cannot hold true to any of them as the heads wearing all of them has considered. We must accept that either we follow one crown (whichever it is), or betray all crowns in the process of aligning with one. Here we see the CIA, single focussed on one crown, yet using whatever hat (see: crown) they wear to get the ‘job’ done and in the process betray all values they held, or claimed to have held high. Is my stern view at fault, or is their polarisation of many hats a view that is corrupt, counterproductive and in the end fatal in the eye of all other beholders?

It is the one view of the Book of Revelation that I consider (in my mind as it evolved in the present) as wrong! If we accept that the crowns indicate total sovereignty and authority then one crown should have been the one, like any monarch, they have one crown, sovereignty sets authority and authority grows justice through mandate. Perhaps my view is a limiting one, but one action consequences into the follow up of actions as a rational of that what should be. At times Sovereignty calls for war as values are under attack, yet it is always from a moral and natural view, which is why I always opposed those with many hats, for those who follow everything do not value anything, it is a limited view, but if we accept a non-atheists view then we can accept that only our heavenly father knows everything, we, the rest just try to figure out 1-2 things, and be just in our lives. It is not much to ask for, but achieving this is still quite the victory.

The torture program shows a lack of that doctrine and a total lack of whatever value natural law allowed for, not mentioning the brazen transgression on constitutional law. We must all accept that we are a witness to dire times. Some will grasp the bible, some (like myself) will try to figure out a solution to move forwards, holding those transgressors to account, a view that some will cry for but at present none will be witness to. This entire issue had been a managed view to keep the key figures of transgressors out of the reach of the many. A dangerous step to live for, but if it is true that the US economy is about to take another massive hit (in about 8-11 weeks), then the key figures in these events can be forgotten about as other issues will give raise to the worry others will get through the demise of America through its economy. That part is seen in its earliest version (at http://www.marketwatch.com/story/its-official-america-is-now-no-2-2014-12-04). This we see at “The International Monetary Fund recently released the latest numbers for the world economy. And when you measure national economic output in “real” terms of goods and services, China will this year produce $17.6 trillion — compared with $17.4 trillion for the U.S.A. As recently as 2000, we produced nearly three times as much as the Chinese“. You see, there is a link, it is not about the torture, but about those behind this, the report was never about to be ‘blocked’ some or all extent. This is about a massive need to keep eyes away from the economy. The same fear Australia has in regards to Mining, that fear the US has in abundance towards manufacturing. They, who had a 300% advantage over China, they are now behind on China and there is no option to change that at present, 18 trillion in debts gets you that. Consider how much China had to grow in only 14 years, how much the US had to ignore and neglect as American companies pushed themselves into a non US-taxed state of producing in China (iPhone anyone?); that change with non-taxable additions is what got US into this mess and there is no exit strategy, but the call for something else.

Perhaps I am nothing more than a diluted false prophet. Yet, I do not proclaim, I question, I call to attention the facts as they are presented by those having so much to lose, are my questions so far out of bounds? We will see in less than 12 weeks, consider at that point, the sudden amazing, so awkwardly bad news we will see on TV, you have seen it in 2004 and 2008, so who will you trust when you see it in 2015? We do not have to wait that long, because the article also tells us “China’s recent decision to bring gross domestic product calculations in line with international standards has revealed activity that had previously gone uncounted” and “These calculations are based on a well-established and widely used economic measure known as purchasing-power parity (or PPP), which measures the actual output as opposed to fluctuations in exchange rates“, it implies that US economists have ‘ignored’ purchasing power parity. As we look at international Business Times (at http://www.ibtimes.com/china-economy-surpasses-us-purchasing-power-americans-dont-need-worry-1701804), with the headline ‘China Economy Surpasses US in Purchasing Power, But Americans Don’t Need To Worry‘, that was on October 8th. So is this torture report truly a revelation, or was it torture for the US government to see themselves surpassed by China? That is, surpassed before Christmas, before Thanksgiving and before Chinese New Year, a population 4 times the size of America.

What bad news (read revelation through the press) will we see next?

 

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Should I run for office?

That was the question I was wondering about yesterday. I am not much of a politician, but I feel that the current batch is not getting anything done in the UK, so why should I, an Australian consider running for office in the UK? Well, first reason is that my heritage is there, but more important, whatever hits the UK, will impact on Australia in more than one way later down the track, so getting the punches in for the commonwealth all over is not the worst idea to have.

So who to join? Labour, well, they are not getting anything done at present, and in two nations, Labour had spent enough to cover the budget of more than two nations. Liberal Democrats?

I do not think they are anywhere near fit enough to govern and Nick Clegg is not making it any easier with promises that get set back. I see them as the party that grows a little by having the backs of the conservative party, which makes it a follower, they are not leading. I have seen man great and small, I have met leaders, I do not regard Nick Clegg to be one.

So now we have two remaining, the Conservatives and Ukip. Now we get a new issue. If we regard today’s news: ‘Ukip recruits BBC’s ‘Gobby’ as communications director‘ (at http://www.theguardian.com/politics/2014/dec/07/ukip-bbc-gobby-communications-director-paul-lambert-nigel-farage), we see a game changer. Ukip is beefing up their political engine with a heavy weight. We see the quote that draws us in first “Over the past few years I have been following the work of Ukip and Nigel Farage, and I feel that he is changing British politics for the better. I am delighted to be able to add my experience to his team“, now we get to the issue! Yes, Nigel Farage is changing politics, the question is, is it for the better?

It is a dangerous issue to debate, I can only debate it from my -point of view and for the most we seem to depend on past political achievements, what are they? Here, we see the Telegraph and the Daily Mail handing us a part that actually matters (who would have thunk it). The headline already gives us the beef of the issue ‘British politics is broken – and only Nigel Farage is profiting‘, which is how we seem to regard UK politics, within the UK and outside of it. The article gives us this bit “There has been no Axelrod figure lurking behind Mr Farage, trying to make him say the right things or wear the right clothes. He has advanced to his position of unprecedented public influence on his own terms. Voters sense this and respect it“, it is in actuality a much stronger recognition than most realise. The people want a person who does HIS (or HER) things, not chewed down, analysed and reshaped for maximum potential. We all want to meet the ‘real’ politician. Nigel has been playing that part and played that card brilliantly. He has a decent amount of charisma which does not hurt either. The Daily Mail is less subtle about it. ‘But this is what you get when a smug metropolitan elite treat the people with contempt, writes Dominic Sandbrook‘ here we see “What Mr Farage has tapped into is a widespread national discontent that cannot merely be dismissed — as some metropolitan commentators have tried to do — as racism or xenophobia“, there is a little more than that, but the elements are shown, by the way, the picture of Nigel Farage holding a pint helped Nigel enormously. The people are seeing a person THEY can relate too, both Ed Miliband and David Cameron forgot about that. I saw Ukip as a serious concern in May 2013 at ‘UKIP or U.K.I.P? (Ur Kiddin’ I Presume?)‘ (at https://lawlordtobe.com/2013/05/04/ukip-or-u-k-i-p-ur-kiddin-i-presume/)

I still see myself as a conservative, yet here things are not going so good either. Part of this is David Cameron’s own fault. Ukip should have been treated more seriously long ago, now they are gaining momentum, whilst the conservative train is losing speed. I think that the conservatives did play the game right for most, but it is the game that the voters have had enough off and they are looking somewhere else at present, which gives us this predicament. So where should I run for office in the UK? (Beside a few minor glitches regarding not being a British citizen). When I look at my family’s history, then there are a few options. I would look at my family’s history to behold my options. The first place is Saffron Walden, which has a link to my grandmother’s heritage. There we see the conservatives with Sir Alan Haselhurst clearly in seat, no threat of Ukip coming there any day soon. The next part is my great grandfather, which gives me Exeter. Here we see Labour as a temporary majority. Now we have ourselves a ball game. I have to work the brain magic, because on looks, Ben Bradshaw, will easily win. Dominic Morris is in the prospective seat for the conservatives and he is not strong, he needs support. Perhaps Dominic would consider the photograph on his LinkedIn profile? Which if the 5 persons is he? Not the best setting for a former RAF trained pilot, only two jobs of 2 years of more, the rest were all mere months. Not the greatest profile here, but it does read slightly distinguished.

You see, here Ukip has an advantage; Keith Crawford is a business man, on YouTube you can see that he knows how to address an audience, showing how EU costs are costing the British people a fortune. He is a former soldier who shaped himself and went into business, her shows that he has options, he worked hard and he made it, an Englishman in England. Dominic Morris will have one hell of a fight on his hands and not just a real fight; he is less likely to win on the data I am seeing. Especially as Keith Crawford is discussing both cheap labour and freedom of movement, we see that Keith has the ability to win this election. I am ready for this fight if need be!

The weirdest part is that I worry about in this fight is that Keith Crawford could have been a formidable Conservative, not with the looks of Ben Bradshaw, but with the voice, the insight and knowledge to be better than Ben Bradshaw. Not that Bradshaw is all looks, as a graduate from the University of Sussex, he has his degrees and he has been a member of parliament since 1997. Still, at present it is about economy and jobs, which is why (as I see it) Labour is to be regarded out of its depth and with a less then strong representation from the conservatives, Ukip could sweep the votes with no less than 45-54%, which leaves the other 2 (we will disregard the chances of the Liberal democrats here) by a lot.

So, where do I stand, how can I make a difference? That is not a given at all, I remain conservative, but to some extent Ukip is voicing the issues many conservatives have, which is why there is such problem. To some extent, there is more at play then the visible items and those attacked by Ukip do not bare them out, moreover, if Nigel Farage gets the majority and he makes an exit from the EEC, we will see those hidden issues out in force, moreover, the act will drive both Germany and France into a coalition of desperation, they will drive every opposition to anything the UK brings and they will try to remove the economic wind from the sails of economy as much as possible, with less than a 1% positive economy, that could play out to be a very expensive lesson. Yet something must be done ant the status quo is no longer acceptable as is, which conservatives to some degree acknowledge in relative silence, Ukip is shouting out the slogans, but there is more in play then a slogan, which is the issue the British audience will learn the hard way after that.

So as we see that Ukip is now bringing out the big guns, we see an electorate that is leaning towards a massive win for Ukip. Consider that only 19 months ago, Ukip was not regarded as a serious threat. I think it is time to see that Ukip will change the landscape, now you the British readers think back to how your Labour/conservative MP regarded Ukip and see the now, wonder how trivialising their presence has resulted in Ukip becoming the next party as it stands. Now ask that MP what else he trivialised and get to work on those items, because as I see it, avoidance of Ukip is no longer an option, but make sure that all MP’s are awake now and that the Tories (and Labour to a lesser extent) have a fighting chance. Because, like Front Nationale (France), Ukip was disregarded as serious opposition, now we see this “The far-right Front National (FN) scored a historic victory in elections to the French senate on Sunday, winning its first ever seats in the upper chamber as the ruling Socialists and their leftwing allies lost their majority to rightwing parties” (at http://www.theguardian.com/world/2014/sep/28/front-national-wins-seats-french-senate-first-time), we are about to see a lot more changes, many we will not like in the long run.

 

 

 

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Not just telling you so!

This article took a little time. There is so much not happening, it is almost scary. Yet, I found a few issues that gave way to the following topics from both the past and the upcoming present.

The Dutch Economy will recover slower according to the IMF (at http://nos.nl/artikel/2007483-imf-langzamer-herstel-economie-nederland.html). Here we see the following statement in regards to this: “Het IMF dacht in oktober nog dat de Nederlandse economie volgend jaar met 1,4 procent zou groeien, dat is nu iets naar beneden bijgesteld op 1,2 procent. Dit jaar wordt een groei verwacht van 0,8 procent. Dat is overigens iets meer dan de 0,6 procent die het IMF een jaar geleden verwachtte“. “Translated: The IMF expected the Dutch economy to grow next year with 1.4%, which is downgraded to 1.2%, this year the economy will grow with 0.8%, which is slightly better than the 0.6% expected a year ago“.

Yet, when we look at my blog dated May 15th 2013 ‘A noun of non-profit‘ (at https://lawlordtobe.com/2013/05/15/a-noun-of-non-profit/), we see the following: “The Dutch NOS reported the prediction that even though the Dutch economy will shrink another 0.5%, they do predict a growth of 1.1% next year, so basically, they expected the economy to grow 1.1%“, so that story about “this year the economy will grow with 0.8%, which is slightly better than the 0.6% expected a year ago“, seems to be retroactive rhetorical whimsy (a sort of economic BS using numbers, as I see it). When we see the predictions on how they were ‘so close’, it is in its most colourful form an example about a guy having unprotected sex and then cry out ‘but I almost did not get her pregnant!’, yes, pragmatically speaking he failed by a mere six inches (you the reader can connect the dots, can’t you?).

You see, this is not whether I am right or wrong (it is a nice side effect), I am postulating the issues of managing Bad News. We see this happen all over the world, even in the more respectable places like the Netherlands and the United Kingdom. There are cogs in the system, but between these cogs is one extra cog that is slightly variable in size. You see, if the cogs are consistent as a watch, then they are always at one speed. Yet economies do not run like that, so the spring that drives it is not consistent in strength and resilience, as such the cogs would be a little variable in displaying the economy, now here is the magic cog, it is placed between two cogs so that it can shrink or expand, so as the economy slows down, then so does that cog, which means it rotates faster and commercial times will move through with the same consistency, we do not get to notice the slowing. Yet, this approach is virtual, it is nice on paper, but in reality, the money is not coming in, so the people have to make due with less, but the economy shows growth, no matter how much we cannot afford food and the items for our creatures comfort.

I think that the IMF is aware of this to some extent. Euro nations have been optimising their presentations in a few ways. Mind you, then are not cooking the books, but at times as the situation is generic, there are all kinds of posts that could be included or excluded, the difference is billions allowing for an upgrade or downgrade by one or two tenths of a percentage point. That is at the heart of it, now we see this for almost a dozen nations and the colourful loom that is called the EEC economy is now a lot less white and its product shows a fabric in all the colours of the rainbow, which is what we face now. We get incorrect presentation which will require a lot more adjusting. Doubt me? Then consider the two quotes that I showed earlier from the IMF. In an economy of 770 billion (previous Dutch GDP), the offset comes down to 3.85 billion, that covers a lot of bills. Now that you see this, consider how inaccurate some need to be to base a budget on something that is off by almost 4 billion, which is 50% of the entire budget for defence. How can this not have been ‘predicted’ better? Well, here is the crux, prediction are never accurate (and 4 billion out of 770 billion is a mere drop), yet in the end, governments all over the world will always portray them to be in a better position, then downgrade that view, yet with billions at risk, that approach seems short-sighted to me. It is almost a forced attempt to spend where there is no money, which is how we all got to be in this predicament to begin with.

To illustrate it, I will grasp to the article and link of a story done by Greg Jericho, who does an excellent job of it. It is called ‘Why isn’t the government being held to account on the China free trade deal?‘ (at http://www.theguardian.com/business/grogonomics/2014/nov/20/why-isnt-the-government-being-held-to-account-on-the-china-free-trade-deal). I do not completely agree with his assessments, but overall the picture that is painted here is quite clear and not incorrect. The first quote in this regard it “The modelling, which was used in the feasibility study, estimates that had a free-trade agreement been signed in 2005 by 2015, our GDP would have been about $3bn more than it would have otherwise been. Is that much? Well it’s about 0.37% bigger. So no, it’s not much at all“. Yes, I have warned in previous articles how dangerous it is to compare statistics, what I had not mentioned at that time, which was not in play, is that changing the base of measurement is also a good way to ‘lie with statistics’, as the article points out. I had done an example in a class I have years ago on founding a hypothesis. In there I used a Dutch municipality data set. When I compared the two in one graph, it showed how the states that were adjacent to the river ‘the Maas’ had decreased in average population, in those years that river caused damage due to flooding in several towns. Yet, the municipalities are all over that state, so does it apply? How to prove it? That is an entirely different question.

Now, I have nothing against free trade, but when we consider the large corporations not paying tax at all due to artistic accounting, adding fuel to the fire to give these large firms even more options to avoid taxation is not a good thing. So that net revenue, how is that taxed, what is more important, once this agreement is in place, how long until Google, Apple and Amazon will change their parameters to include that setup to avoid paying more taxation. How does that help Australia or Australians in any way, shape or measure? When that graph changes, export slows down and imports of all measure go up, how will free trade benefit then? I am not stating that this will happen, I am just wondering what happens if it does.

The one statement by Greg I disagree with is the one at the end “A free-trade agreement is no more a guarantee of economic growth than not having one is“; I would state “A free-trade agreement gives a lot more danger to tax avoidance on several levels than not having one“. Google, Apple and several others proved that point for the last 4 years, at present there is little chance of seeing them pay any taxation for at least another three years, then there is the solar panel debacle, but the least said the better. The fact that there is a decent issue with well over 50% of the panels (out of 600-1000 manufacturers) should give an indication that this free trade agreement, does not necessarily mean that quality will improve, with free-trade in play, that list consisting of dozens upon dozens of articles will sharply rise. How to guarantee that quality? The article does not reflect on that (was not meant to do so), but that issue will be (better stated should be) on our minds too. There is however one side that we should consider. We forget how rich the Chinese culture is. I believe that China could become a serious player on the video games market. Some of these stories would translate into different genres of games on every console. I am not talking about South South East China (most people call it Taiwan), I am referring to Guangzhou, Shanghai and Beijing. One of the strongest cultures has not presented itself digitally in any strong way, which is a shame, because in the end, gamers care for good games, not where it was made.

Why the jump to games and gaming? Well, it is one of the markets I know a lot of. We might be on par with IT, engineering and other options, but gaming in China, original gaming in China is a relative unknown. We tend to look at Japan for that. Well, guess what, Nintendo has been rereleasing games for some time now (good games mind you), but they are slowly becoming an iteration of what was an original concept. It is not about the games (well, it is only to some extent), I believe that new innovation, new IP and new, truly mindboggling advances come from interaction. We need IP, advances and new opportunities, these come from fields we have not seen yet. If you doubt it, consider 1993, when a game named Doom entered into our lives. Most will not remember it, but it changed gaming in a massive way. I still believe that this game became the spark that would be the conception of what would become in 1998 the Unreal engine. That would change gaming forever, even today, 16 years later, many games are relying on the unreal engine, and some of the artwork created today through the Unreal engine is so amazingly sharp that it makes the result almost undistinguishable from reality. That is the foundation I believe we can see, another jolt in the advance of gaming. That is a development which will not just remain in gaming, as unreal developed, it developed a commercial need for 3D technologies and it even has military applications in more than one nation today. I believe that the multi-billion dollar games industry has the potential to drive a trillion dollar commercial need for innovation; we only need to find the right combination to make it work.

That’s just the opinion of one blogger, but I feel fairly certain it is a shared opinion.

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Show me the money!

That is what I wanted to shout out loud today, not because of a scene between Tom Cruise and Cuba Gooding Jr, but because of the story written by Larry Elliot (the Guardian economics editor). He is not wrong, probably with his insights and degrees he is more right than anyone else so why am I all up in arms about it? You see, if he is right then there is something extremely wrong with this world. Here is the crux, either he is wrong, or the bulk of the planet has become demented. What will it be?

Why do I consider this to be my view?

The view evolves when we consider the following aspects of the British economy. First there is “The budget deficit will be almost £100bn this year and is rising. It was supposed to be below £40bn. If the current Treasury chief secretary, Danny Alexander, is foolish enough to leave a little note for his successor, he will only need to insert one word into the one penned by Byrne: still” and “Britain currently enjoys the sort of growth rate that Germany, France and Italy can only dream about. The economy should expand by 3% this year, making the UK the fastest growing G7 nation. Jobs are being created at a record rate, a development that explains why Britain is proving a magnet for migrants from the rest of the EU“, we have seen this. Yet, as immigration is not capped to the extent it should be, jobs go to the cheap Polish workers, whilst we see a massive +50 workforce unable to get jobs, which we get from the Guardian (at http://www.theguardian.com/society/2013/nov/13/unemployment-fall-masks-jobless-over-50s). “Bennett is one of more than 400,000 people over 50 in the UK who is registered as unemployed, according to the latest official jobs data released yesterday“, you see, the mature experienced workforce is deemed useless in many areas and as such, the economy will take two hits. The first one is that these people in the end still cost money, in the second that as companies rely on cheap labour; we see that they go three steps forward, two steps back; it is getting them nowhere fast and at great expense too. So as those people have an income, the companies are just scraping by, having therefor the dubious benefit of living at tax level zero. That keeps the Osborne coffers (also known as the UK treasury) pretty empty.

Let’s take a look at some events linked here “Former BBC director general Mark Thompson has said sorry for the £100m failure of the BBC’s Digital Media Initiative (DMI)“, “Siren police IT project’s £15m failure a ‘debacle’” and not to forget “Abandoned NHS IT system has cost £10bn so far“. There is a level of sheer incompetence that is beyond measure. Yet, I think it goes further than that, I think that as areas have cut back and scrapped from the bottom of the barrel, we see cogs of non-comprehension that just twirl having no connection to any other cogs. Companies, which are no longer structured in the old ways, but still presented as such, they are niches into rooms, where only the manager has access. Like the American cubicles, that only one person oversees, absent of checks and balances, whilst the people no longer talk to each other, no clear communication. That represents the new era of work. The 50+ population have seen why there are issues with the cubicle approach and the manager who needs to get the task short-sightedly done is barring 50+ from being hired, this results in a sliding slope of minimised success.

What do they have to do with one another?

Let’s get back to the writing of Larry Elliot at this point “It took until 2013, however, for the level of output to get back to its pre-recession level, the slowest recovery of the post-second world war era. Osborne thought the economy would cope with austerity better than it did. He underestimated the impact of higher VAT and cuts in spending on growth. The chancellor thought his tough deficit reduction plan would boost growth by generating more confidence in the private sector that the books were being balanced. He was wrong. The upshot was weaker growth, lower than expected tax revenues and higher than expected borrowing. Half way through the coalition’s term in office, Osborne abandoned the idea of sorting the deficit in one parliament, and reverted to a more modest plan akin to that drawn up by his predecessor, Alistair Darling

The crux is “The upshot was weaker growth, lower than expected tax revenues and higher than expected borrowing“. I think that it is not entirely correct! Yes, Elliot writes the truth, but behind the curtains we see projects failing due to bad decision making (like the headlines mentioned earlier), in addition we see mergers of an unparalleled size “The chemist chain Boots is being sold to the American retail company Walgreens in a £10bn deal that is delivering a huge pay-day for its private equity owners“, which sounds nice, but how does that fill taxation coffers? It does not!

Corporate choices are made to avoid taxation like “U.S. Treasury Seen Loser in Tax-Avoiding Pfizer Move to U.K.” is at the heart of the second tier of failures. Not a failure by George Osborne, but a failure by their corporations that bleed nations dry, whilst not being held accountable, there the nations have failed themselves by not alter the proper legislations to avoid these acts of non-taxability. Whatever happens next will happen too late, the coffers are empty and those who walked away will do so in non-taxable luxury for the rest of their lives and the lives of the next 3 generations of their family to come.

The next part has a few issues (none of them are Larry Elliot) “The foundation notes that two-thirds of people who have moved from unemployment into work in the last year are paid below the living wage, the average self-employed person earns 13% less than they did five years ago and there are around 1.4m contracts not guaranteeing a minimum hours. Over half of them are in the lower-paying food, accommodation, retail and administrative sectors” Many of these lower paid jobs are all about areas where we see high rent, a massive drive to turn around orders and well above counted hours are needed. Life in London (as well as in Sydney) has become a life not unlike hyenas. These bosses are trying to stay afloat, which they do by hiring the weak, the cheap and the manipulative. One waitress mentioned this in a forum “Now I understand I am competing with people on the dole who can be near enough forced to work for free but it still sounds a bit shady“, the mention has bearing, as people are pushed more into unpaid extra hours, less rights, less options and less energy, we see a community that has devolved from symbiotic into parasitic, with only one winner in the end, the landlord!

Both the UK and Australia have been unwilling to deal with this entity, leaving the people at large to fend for themselves without any support.

The next part is a statement of fact, there is nothing against it in any way “If it is taking longer than expected to knock the budget deficit back into shape, the same can be said of Osborne’s other objective – to boost exports from a re-invigorated manufacturing sector so that Britain once again pays its way in the world

How to go about it is at the heart of it and several options are open as they always are, but consider that out of a dozen avenues, one is a solution, three are deadly and the rest tend to have a costly non solving effect. Several parties in play, not Just George Osborne, but in that same view, Alistair Darling and Gordon Brown all had the same flaw (as I personally see it). Instead of finding a solution that is a mere band aid, they all failed to seek the solution which had the visionary idea to include the next generation. I had that idea on two instances; the one that matters here is the article ‘What’s in a health system?‘ on June 29th 2014, where I state “When people ask which company will do this, the answer should be ‘None!’. The UK is filled with universities, some of them regarded as the most prestigious and brightest on the planet. Consider that most IT people, might claim experience, yet their drama skills are the only ones that improved for the most, is it not up to the Universities, those who are introduced to the newest ideas, design a solution that would make the work of the doctors and nurses at the NHS better, slightly more efficient and a truckload of less hassle! Is that such a tall order?

Like a regional solution for a independent Scottish IT environment, the visionary approach is to bring this to the universities, to develop a new system, not just a mere frame that goes on top of something else, but an actual new system, LINUX based option, a security enhanced LINUX for healthcare, one that is designed, not for 2016, or 2017, but for the next generation. Why not give the universities access to design their new future, not leave it to these current so called executives that waste up to 20 billion not delivering anything. That visionary approach is missing and it could be the death of us all (UK and Australia alike), we have so many similar issues, why not tackle them together, open up avenues that have never been considered. If you want visionary, then look at the Netherlands, they decided to change the bicycle lanes into solar panels, do you have ANY idea how many bicycle lanes the Netherlands has? It is actually a visible percentage of that nation’s surface. Now, they decided to give it a second function, which means generating electricity, without needing any space at all, illuminating the bicycle road through fluoresces, making it safer at night. They decided to attack road safety and energy issues all at the same time. That is the level of innovation we need to see, preferably without spending another 20 billion pounds. So how about changing, or better stated evolving universities and giving them a real hand in innovation and solving future problems we have ignored and left dead for granted (like the NHS).

The last part is seen here “Ed Balls, the shadow chancellor, said: “I am not that bothered about being behind on economic competence. In opposition, we are always behind on economic competence. Brown and Blair were at this point before the 1997 election. “I would rather we were further ahead in the polls but the Tories are leaving it a bit late for a feel-good surge. That’s why Cameron is talking about red lights flashing on the dashboard. Maybe he thinks he can scare people into voting Tory.”

I disagree, Ed Balls needs to get scared shitless real fast! George Osborne needs to do something similar! Economic competence is not something that is behind, the indicators are that they are close to non-existent. As numbers are hidden behind the statistics of ‘% of GDP‘ we are diluting ourselves that we have a handle on things, once the message is that the total debt has decreased below 750 billion, we have an actual message, but for now, that 25% decrease is nowhere in sight. Life in the UK is all about meeting the payment of the interest debt, whilst none are tackling any solution regarding the total debt for the future. That danger has been voiced by several players all over the field. The message now is that ‘Investors Underpricing Risk May Threaten Growth, IMF Says‘ (at http://www.bloomberg.com/news/2014-09-17/investors-underpricing-risk-may-threaten-growth-imf-says.html) as well as ‘Flug Flags Underpriced Risk as Investors Drop Corporates‘ (at http://www.bloomberg.com/news/2014-09-30/flug-flags-underpriced-risk-as-investors-drop-corporates.html), which gets a punch from today’s news ‘New York Hops on $15 Billion Israeli Corporate Bond Boom‘ (at http://www.bloomberg.com/news/2014-11-30/new-york-hops-on-15-billion-israeli-corporate-bond-boom.html). Like the housing in Hackney through Westbrook Partners and Round Hill Capital in the Netherlands, we see again a change in markets (like they always will), but this is different. Like Greece (again) last week with “A Greek official says the country is under pressure from rescue creditors to impose new austerity measures to resolve an ongoing budget disagreement worth a reported 2 billion euros ($2.5 billion)” (at http://www.cnbc.com/id/102222375), we see a market that keeps on getting pushed whilst there is no money left. By the way, those two players (Westbrook Partners and Round Hill Capital), did you consider combining these facts?

Have you considered when Westbrook goes market value and they merge with 2-3 other players (perhaps Round Hill Capital as one of them), when they merge, how much taxation will be missed out then, also, what danger will these tenants be placed in at that point?

So back to Greece and their dwellings, Greece should both be dissolved and offered to Turkey (just to make it sting a little more) or they need to clean up their act, including dealing with these massive strikes. Let’s not forget that Greeks themselves did this to Greece (partially through Goldman Sachs). We see cogs of greed interacting, finding new connections not to be held accountable, whilst its population gets the bill, blaming Germany for all of this. In that same light we see how we are now confronted with underpriced risks. So, not unlike the 2008 crash with all these “sub-prime” borrowers and bailing on 8 trillion, we now see governments trying to intervene by ‘forcing’ banks to make low cost loans to the underprivileged “sub-prime” borrowers, trying to create a fake boom, whilst at the same time, they have created a more likely than not risk that it will only explode in their faces, whilst imploding their economy (this is as I personally see it). Here in the end, we see that the bank wins no matter what, either the government pays them, or they just own it all. Like the landlords of London, it will destroy the quality of life for more and more people, whilst not showing any resolution in solving the actual problems.

This all comes together when we consider the IMF part on underpricing risk (mentioned earlier), there we see the part that is truly linked to all our woes: “Policy makers from the Group of 20 nations meet this week in Cairns, Australia, to discuss ways of boosting global demand. The Fed today maintained a commitment to keep interest rates near zero for a “considerable time.” At the same time, Fed officials raised their median estimate for their policy interest rate at the end of 2015 to 1.375 percent, compared with the 1.125 percent estimate made in June“. The crux: “ways of boosting global demand” it is at the heart of the failures we see. It is worse than bad marketing. The last thing we need to do is boost demand. We need to resolve debts. Yes, the US wants to see demands boosted, as it was one step away from bankruptcy 5 steps ago. They are trying to bluff into a new era of not being dead, whilst they have been unsuccessful in dealing with their debts, having no solution and even less options. We must find another way. If the Netherlands, one of the smallest nations in the world can turn around an age of innovation to their advantage in a novel way never seen before, then so can we! If you wonder how this linked, then consider how their solution can become a new era of energy independence all over South America, parts of America and all over Europe and Africa. Solar panelled roads, a patented solution that can change the face of the earth in one mere step. Once the high pressure solution is done for cars, we will see a new era of energy. Not bad for a place that is famous for wooden shoes and a leaky dike! So where are we in the Commonwealth? Where is our innovation?

In the end Larry Elliott spoke the facts, the truth and wrote an excellent article, I just disagree with the views they link to, in the end, it might be me who was wrong and it is all in the eye of the beholder!

In this age of debt, innovation and Intellectual Property are soon to become the only currency that will have any true value! The Commonwealth needs its own share of those, less it becomes as desperate as America currently is.

 

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I have seen this before

It was not a pretty picture this morning. The Australian deficit is about to be blown clearly out of the waters surrounding it. Yes, there was nothing wrong with the initial assessment that Australian would no longer be in the red before 2016. The plan was bold, it was feasible and after the Australian Labor party had blown its spending in the hundreds of billions, from a 57 billion debt, Australian Labor blew the national debt and grew it in excess of 250 billion, in addition, the forward spending spree by Kevin Rudd and Julia Gillard would give the Liberals a 600 billion headache, and it is a firm headache, which is about to get a lot worse.

Whether we see it as politics, treason or just incompetence, the Labour government seems to have played an intentional game of silencing certain contracts. It is my view that there is not possible, that after only 3 weeks into the liberal government that the car industry decided to just walk away. This was planned all along and they played nice with the Labor party for the view of whatever benefit game was played. So the Liberals ended up with massive invoices and bills that Labor should never have spent, but this is not about that, this is about a second game that has been in commencement. It has been played for a little longer that the Liberals have been at the helm, but in that instance, I will state that neither party is to blame. This is not political; this is political management of another nature.

For the second game I need to take a little detour to the 80’s. When I grew up in the Netherlands, more specifically Rotterdam, I was all about harbours, ships and engineering. My work with IT systems in the harbours gave me an interesting edge. I had access, I was busy all day programming new container solutions in Clipper and I dealt with cargo of several natures. One of the things I used to see on a daily basis was an enormous mountain of iron ore. It was meant for Germany, yet at times that mountain would not shrink; it would grow and grow and grow. In those days it made no sense to me, little did I know!

Now we get back to today, the current administration is about to bleed out no less than 20 billion for the simple reason that revenue of iron has gone down 40%, not that less is produced, no, iron is worth a lot less now. So, to get even, Australia needs to ship 250%, which is not an option. So why sell it at all? Now we get to an interesting article in the Sydney Morning Herald (at http://www.smh.com.au/business/price-drop-signals-the-end-of-the-iron-ore-age-20140912-10fxr7.html), we see here that the initial rise and fall was all in the previous government, there is also a clear view that not only is this rise temporary, the overall trend shows that the previous government had a lucky break (and still overspend by close to half a trillion), yet the current government is not innocent either as their view on iron revenue should have been downgraded by at least 20%, which would have lessened the impact. Neither is to blame, but also, neither is innocent here. So as we see the solution, we need to worry what will come next?

This is where it gets to be dodgy; it is sheer speculation in my side. I think that someone is playing chipmunk here. I think that a mountain is created using all manners of non-taxation and then they will sell it all off at a massive profit when iron price suddenly makes an upturn. Between March 2010 and April 2010, the price went from 139.77 to 172.47. Even though such a jump is not conceivable, the fact is that if housing improved only a little, iron prices will grow again and it is a global market, so as one person needs more, iron will do better again. so buying and storing when prices are down, transferring to a foreign account and then selling as prices bounce back, will yield massive profits for those non-taxable entities. Is it true? No, it is speculation (from my side), yet we have seen similar acts before, so it is not inconceivable, in addition, the Australian government is bleeding deficits fast, and they are amounting to serious amounts within the next three months.

This part is all on the Liberal side, it is not their fault, but they will need to amend their budgets and forecasts accordingly. And it is not just Australia, the UK has similar issues, yet not to the same extent, but the pressure is there too. The UK will take a 30 billion dive, which is a sizeable amount. This all beckons, why were predictions not made a little less enthusiastically? You don’t skin the bastard until it is dead (and very healthy for the poacher seeking crocs). This again shows the need to take a better look at how certain items are anticipated and budgeted. If you doubt that part, then ask George Osborne and Joe Hockey on how many complications those billions bring and it is not the only worry, because there is a second downside. Whoever has these current mountains of ore, they do have a firm grip on driving prices high soon enough, then what will we do?

So, when did I see this before? Well, that is the fun part; I saw it happen around 1989, when the prices went up a little (16%) form $12 to $14. Yes a mere $2. It becomes an interesting view when we look at the data form the last 30 years. The entire mountain of increase and decrease started pretty much in December 2003, when the price was $13.82. From there it would shoot up to almost $178 (2011), now if it is going back to its foundation price. Why was this not better investigated? How come that a commodity is driven up by 1369%? The final part we see in the Economist (at http://www.economist.com/node/21564559). The quote “In the longer term, overall iron-ore demand will grow as China’s march to urbanisation goes on. Demand in the rich world may be drooping, but Wood Mackenzie, a consultancy, says steel consumption will not peak in China until 2026“. Is that a given? When we consider the site macro business with the article ‘Chinese Iron production is booming‘ (at http://www.macrobusiness.com.au/2014/08/chinese-iron-ore-production-is-booming/), we see the question I had in my mind.  “The one question that nobody in the iron ore sector (or Australia more generally for that matter) dare ask is what if Chinese iron ore production does not close as Australian miners ramp up output. The reason nobody asks it is that the outcome will be calamitous“.

It comes down to, why should China import? They have cheap labour and resources, and they have iron (at http://www.srk.com.au/en/newsletter/focus-iron-ore/iron-mineral-deposits-and-projects-peoples-republic-china), so why import when they can become a supplier themselves. It is not inconceivable that Australian iron moguls like BHP, Fortesque, Rio Tinto and Hancock will see a decline in numbers. There is no way to tell whether it will return to pre 90’s prices, but if China gets their own iron and their demand for it goes down by 70% or more, the hard news hitting us now will be nothing compared to the bash we get when an industry of 250,000 miners will shed part of their people. We thought the car industry was a nightmare, well; consider that under current conditions if 40% less minerals are needed, we might see the shedding of 100,000 people, a level of bad news Australia has never faced before.

Even though Australia mines a lot more than just Iron, the metal impact could be harshly felt in 2015, if the situation does not improve.

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