Category Archives: Finance

June 13, 2015 · 11:51

If at first you don’t succeed!

That was the first thought I had when I saw the article ‘Academics attack George Osborne budget surplus proposal‘ (at http://www.theguardian.com/business/2015/jun/12/academics-attack-george-osborne-budget-surplus-proposal) and the title reflects on them as well as on me. You see, as stated more than once before, I have no economics degree, but I have insight in data, I am not a bookkeeper, but I know how to keep my own register (I’ll let you boil down that conundrum by yourself).

So as I have a go at 77 of the best known academic economists, I present the first quote, which is: “George Osborne’s plan to enshrine permanent budget surpluses in law is a political gimmick that ignores “basic economics”, a group of academic economists has warned“, here we see the first failing of these economists. You see, the first rule of a basic economy is plain and simple:

Do not spend more than you earn!

That has been a massive need for over 20 years! Some ‘academics’ convincing that the budget could be X (whatever the amount is, now they tell us that X = Y (part of our costs) + Z (the interest and minimal payback on a massive loan that allows us to do more). At some point, one politician was stupid enough (or forced) to do this, but then the next one did it too and so on. Now we have a game, because of a group of flagellationists, we are all whipped into a place we never wanted to be, which is deep in debt!

Were those economists wrong?

They were not IF (a very loud if) the politicians would have diminished the debt, which is now 1.5 trillion pounds. You remember the first formula (X=Y+Z), now let’s take a look. You see, the numbers have been shifted again and again. Some now state that the interest is £42.9 billion per annum (2013 numbers), So now we get X = Y + (42.9 + 30), which is the annual interest and the paying down the debt at 2%, let’s not forget that at this pace it will still take 50 years, that is, if we get a budget that is actually set!

There are other complications that will make ‘Z’ higher, or ‘X’ a lot lower, when we consider maturing bonds and all other methods of ‘borrowing’ funds. You will see that the only winner is the bank. Whomever gets paid 42.9 billion is getting that as a guarantee without ever working for it. You the readers in the UK are doing all the work for that bank. The economists are not trying to tell you that. They come with ‘it is a very complex situation’ or my favourite ‘it would take too long to explain it all’. Yet, in their own words, ‘basic economics’ is actually really simple.

Do not spend money you do not have!

Now we get the quote “the chancellor was turning a blind eye to the complexities of a 21st-century economy that demanded governments remain flexible and responsive to changing global events“, which I see as a half-truth! You see, economics are quite complex, but they are only complex because economists and their friends in the financial sector MADE it complex! They get all this money for free from governments all over the world. They do not want to change that ever!

For the sake of the United Kingdom, the Commonwealth and our sanity, George Osborne is making that change. If previous Labour (especially Gordon Brown MP) had not spend the massive amounts they had, the UK would be in a much better position, but that is not the case. The economic view of ‘flexible and responsive’ is a valid point, but previous events turned ‘flexible and responsive’ into non-accountable overspending of funds that were not available. It will take a generation to clean up. The issues in Greece got so hairy that the President of the United States put his foot down, 2 days later the IMF walks away. An economy so deep in debt, an economy only representing 2% of the economy of the EEC could be able to topple it all. That is what many do not want to address!

This gets us to a linked quote in the article ‘Greece running out of time to avoid default, leaders concede‘ (at http://www.theguardian.com/business/2015/jun/12/greece-running-out-of-time-to-avoid-default-leaders-concede), where we see: “Greece has less than a week to strike a deal with its Eurozone creditors to avoid defaulting on its massive debts and perhaps being kicked out of the single currency area, with German leaders and top European Union officials now conceding that default is the likeliest outcome“, so as you might recall that Greece claimed that a solution was ‘almost’ there, I will show you the ‘flexible and responsive’ side to the word ‘almost’.

You see, “I have had sex with Laura Vandervoort almost every night!” Monday almost, Tuesday almost, Wednesday almost. You get the idea, ‘almost’ here is like ‘as soon as possible’, at times it means ‘Never!’ (it would be so much fun to get a mail from Laura stating that she will be here ‘as soon as possible’, I am not beyond irony and it will make me chuckle for weeks!

Why this example? Well, I have been telling the readers for months that Greece has been screwing us around, you see how the words just fall into place? The economy does not! This is the clear evidence that the law must change. While all the players getting nice incomes were saying ‘tomorrow’ ad infinitum, George Osborne is saying ‘Now!’

The fact that this is essential is also seen through the acts of President Obama. Tax evasion was high on the G-meetings (G-7, G-20, take your pick), yet, when Australia introduced the Google Tax, we see the us Treasury making waves to stop it ‘US Treasury pressures Tony Abbott to drop ‘Google tax’ ‘ (at http://www.afr.com/news/policy/tax/us-treasury-pressures-tony-abbott-to-drop-google-tax-20150428-1mu2sg). They stated it as: “Mr Stack said it was critical that Group of 20 countries like Australia that were participating in global tax negotiations did not pass laws on their own that would contradict international agreements“. In my words, my response would be: “Mr Stack, you and your administration are a joke! You have not acted for over three administrations in reigning in corporate greed, your American corporations were cause of a financial meltdown 11 years ago, a meltdown we are all still feeling. In addition, you have not set ANY solid ground in countering tax evasion, other than the windy speeches we have expected to see, all speech, no action! It is time for the American administration to put their actions where their mouths have been for too long!” Not too diplomatic, but the message is coming across I reckon. The commonwealth can no longer adhere to the irresponsible acts of a nation that is 18 trillion in debt!

So as I see it the quote “they argued Osborne was guilty of adopting a gimmick designed to outmanoeuvre his opponents“. You see, this is not a gimmick, this is a direct need where the banks are no longer in control, the Commonwealth is a monarchy, that is there to give a future to the people and to keep them in a place where they have a future. For now Greece basically no longer has a future. It has spent it all, unless the US treasury comes up with 50 billion (quoting Jean-Claude Juncker), it only has time to find a solution that will not end the existence of Greece.

This is the massive difference that the people keep on forgetting. The UK is a monarchy, with a sovereign ruler who has accepted (or: was given) the responsibility to keep the nation thriving and its people moving towards a happy place that has a future, America is a republic, where the elected official is depending on large contributions, especially from the wealthy. It has given in to big business again and again for the last 20 years. As we see the USA, a nation more and more drowning in civil unrest, we should consider how they got there. The got there by lacking in laws that held big business and government to account of spending. Here we now see “George Osborne’s plan to enshrine permanent budget surpluses in law“, this is an essential first step to get us all back on a decent track where we are not in debt!

Getting back to the formula. The last step we were at was: X = Y + (42.9 + 30), you see, the people all over the place have been ‘deceived’ to some extent. Deceived is hard to use, because the word ‘misrepresented’ is a much better word. X is what the UK receives. With large corporations ducking their fiscal responsibility, the value of X goes down, with unemployment issues and zero hour issues, the people get less money and as such they pay less taxation, so X goes down even further. Now we get the set costs. (Y), more and more elderly, means more costs and they do not pay taxation. So the elderly drive down X a small bit and drive up Y a large portion. I do not hold that against them! They worked, they made Britain (and Australia) great! They did their share, so they get to sit down to enjoy the tea and biscuits (an additional fine venison steak would be good too). These are all elements that the economy is confronted with and as these economists have been to enabling to big business, we see that we must put a stop to what is happening. We have no other choice, or better stated we have less and less options. These economists are all polarised into one direction, one direction that has not worked for over a decade. We get misrepresented by ‘managed bad news’ and other forms of information we can no longer rely on.

Consider that I have been on top of the Greek case for some time now, so when we see (at http://ec.europa.eu/economy_finance/eu/countries/greece_en.htm) the fact that the forecast of Greece is 0.5% in 2015 and 2.9% in 2016, I wonder how they got to it all and if such misrepresentation should not be a cause for liability? Is it based upon raw data that we can trust? You see as these economists all rely on the ‘formula’ and all concede that it is a good model and a real predictor, my gut has been a lot more accurate and these economists had to adjust their numbers downwards time and time again. The last part for Greece is seen in the Financial Times, it reflects on what I stated earlier (at http://www.ft.com/fastft/343532/eurozone-financial-fragmentation-hits-5-year-low)!

“Initiatives such as the European Stability Mechanism, a permanent rescue fund designed to limit financial chaos that might arise from an event such as a Grexit, as well as the €1.1tn quantitative easing programme, have helped insulate the rest of the Eurozone from Greece“, to ‘limit financial chaos’, is that not weird? Many players downplayed the impact of Grexit (especially France). So this ‘rescue fund’, how much is in it? You see, that will become a debt too and where does it go? France, Italy? They are in deep financial waters. So how much more will be needed to stop France and Italy to go over the edge?

Simple economics is to lower debt, now to throw money from other sources at the interest of debt, which solves nothing! George Osborne was right before, he is right now. The fact that the Economy players, the IMF and America do not like it when others are out of debt, that does not mean that we should adhere. I showed how USA adheres to big business (including banks), it is time to be self-reliant! So as rating agencies set the outlook bar to negative, we should start to wonder, who do they serve? You see, if the ratings are about the ‘now’, so the outlook is moved from Negative from Stable for an event that is not happening until 2017. Guess what, the UK was always stable, and when these ratings are shown to be ‘flawed’, then what?

To be honest, S&P has an interesting paper on this (at http://www.standardandpoors.com/aboutcreditratings/RatingsManual_PrintGuide.html). Here we see the quote “Credit ratings are opinions about credit risk published by a rating agency” and “Standard & Poor’s ratings opinions are based on analysis by experienced professionals who evaluate and interpret information received from issuers and other available sources“. Now we get the final part. The first quote is clear. It makes it known that this is a matter of opinion. The second quote is how they get it. Now tell me, how many of these ‘77 economists’, who were thumping George Osborne on all this, are involved in setting economic predictions? Are they linked to people who do set the ratings? I am not certain of the first premise, but I am decently certain of the second premise!

So are these economists, who claim that it is about ‘governments remain flexible and responsive’, is that it, or is the game getting rigged because the few are willing to sell the larger proportion of a population down the drain for the interest of self?

Consider the information given and work for a place of common sense. You will soon realise that the path of George Osborne is the right one, moreover, when in your life, has debt ever been a good thing and how is the debt working for Greece?

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Tagged as academic economists, America, Australia, Conservatives, economists, economy, Financial Times, George Osborne, Google Tax, Gordon Brown, Gordon Brown MP, Greece, IMF, Jean-Claude Juncker, Labour, Laura Vandervoort, President Obama, S&P, Standard & Poor, the Guardian, Tony Abbott, UK

June 12, 2015 · 11:18

It is today!

We can boast, we can make all kinds of slogans. Like ‘Do you feel lucky, punk?’, ‘The writing’s on the Wall!’ or ‘If at first you do fail, whinge, whinge again!’

We can make all these boasts and claims when it comes to Greece, but there is symmetry in mine: ‘It is today!’

You see, in my previous blogs involving Greece, too many to just mention them all here, but Google ‘Lawlordtobe Greece’ and you’ll get a nice list! I stated clearly that Tsipras was out of his league. You cannot play the high stakes he did and not given in on several fields. Banks will not allow that, they were dealing with what they thought was an adult population (previous Greek governments) and ended up at the table with a petulant child (this Greek government). How did you think it would go over?

By the way, Greece lost a lot more than they bargained for, as the interest bill kept on going, as the bills were still due. Syriza and their approach of inaction has cost the Greek people already 11 billion in interest, an ongoing cost that would not be set still, so the 7.2 billion in bailout does not even cover the interest bill, let alone the additional costs that have matured. Tsipras and his gang played a game of solitaire, taking a day for every move, a game with 8 visible elements. Cost to the taxpayer 61.1 million Euro’s a day. Not to mention the flight and hotel and food and drinking costs. Just the interest alone, 61,111,111.11 a day!

Today Tsipras will realise what I have been telling all along. Certain players will not budge, he should have realised that when President Obama spoke on the need for actions and he was not kidding. Do I need to remind People on the IMF loan that did not go through for Argentina in 2001? It was said that the US was the strongest voice that stopped IMF bailing out Argentina and they were left with Vulture funds, which was 13 years ago, that issue is still playing today. So when President Obama gave his speech last week, the only option Alexis Tsipras had was to take the first flight back and seriously discuss actual options. He decided not to do that.

Now the IMF has walked away from the table. Like the SNS bank, Greece believed that they were ‘too big to fail’, which did not work for SNS and it will not work for Greece. We need to realise that Greece only represents 2% of the European Economy and the repercussions at present of default will be massive in Europe, because even though the results have been heavily downplayed, the impact of Greece will be felt, there is no doubt about that. Syriza did this to Greece, not the Germans and no one else, it is a Greek act of whatever they think it is.

So as the Guardian is not printing a picture of Tsipras laughing, or Tsipras pointing at his watch, this is Tsipras contemplating in deep worry, because the final bell is ringing and he is out of time. Perhaps he finally realises this, perhaps he is thinking of one more act before the Greek flag is lowered forever. Whatever he does, he better think of the people that elected him, because they are about to lose out on a lot more than even they bargained for.

So what can Greece do?

My first voice would be to re-elect New Democracy, because Syriza did not seem to have a clue what they were doing. Now that the US has had enough, they will have even less time and less options. In my view Greece needs to become a professional entity and needs to call in the professionals. It is my view that any act needs to show that ACTUAL work is being done. It will appease the creditors, the rating firms and the IMF, all in one deal. In my view (especially as they have many fences to mend), Greece should call on PricewaterhouseCoopers. Not just for advisory, but also for implementation, consultancy, education and taxation. In the view of all who matter and the view of many more, the statement from Greece that they can fix it, no longer holds value. In this way, PricewaterhouseCoopers (PwC) gets to redeem themselves for an issue involving a grocery store or two and Greece gets a sweet deal on actually resolving issues. Greece can no longer continue in this way and that needs to be documented. Not for the world to know, because to some extent it is nobodies business, but to seriously call in the commercial auditing cavalry and sit down and actually do something about it is essential. The additional benefit is that if Greece would ever need to repackage anything, having PwC in your corner with all the data and evidence will go a long way, a degree of freedom Greece lost some time ago.

The second party in all this would be Natixis. Any actual movement from debt, any resetting of outstanding loans needs a group of people that has the ear of those who matter. Natixis is one of the ONLY non-US firms that has the ear of every G-20 nation, has strong ties with European governments and has access to possible financial solutions that Greece did not consider. If pensions are to be saved they need to look at those making actual money, Natixis is such a player. It is not the worst idea to rescale a government to be commercially viable, Greece now has to make the step no government has ever considered before. You see, in 300: Rise of an Empire we see an interesting quote in the beginning of the movie “All glory die, thousands died by the hundreds of them all for the idea. The Greeks free. An experiment called democracy of Athens. I wonder this idea is worth all the sacrifice”

You might wonder why I grasp back on a movie quote, but consider “Aristotle argues that all forms of government have their problems, including, but not limited to democracy“, we all live in a democracy, an idea that came from Greece, would it be so far-fetched that it is Greece who takes an entirely different step, one that could propel them forwards? So many governments, all these nations that are set in methods by their own internal ‘experts’ (none of them able to hold a budget I might add), you see, the best experts are never in government, so why not call on the actual experts who might give view on solving this matter.

Greece might end up being the first to take such drastic steps, but it is 99% certain that this solution will take hold at some point and more governments will need to consider this point in the future and make that act, many of them will have economies substantially larger than Greece, even when we consider Greece when it was at the height of their economy.

We are all pushed into new directions, perhaps the road least travelled, will show the solution never pondered and a resolution is undertaken that changes everything.

This is just me having an idea!

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Tagged as 300: Rise of an Empire, Alexis Tsipras, Greece, Greek government, IMF, Natixis, New Democracy, President Obama, PricewaterhouseCoopers, PwC, SYRIZA, the Guardian, Tsipras

June 8, 2015 · 00:31

A slave to greed

It is time to take a stance a little more vocal and a little more ‘anti’ certain voices. You see, the people are being led astray, misinformed and basically lied to. It is a clever lie that some people spin, where the involved players (like in Greece) focus on one part of the story and after that story is told, those who think they are getting informed, are told a fairy tale with no concrete connection to reality or to the factual complete truth. Those advocates work from the concept of ‘in the eye of the beholder’, which sounds nice, but when you pay your electricity bill, there is no eye of the beholder, there is just the invoice!

To get this party train started, let’s take a look at the definition. We are looking at Austerity!

According to the Investopedia it is: “DEFINITION of ‘Austerity’ a state of reduced spending and increased frugality in the financial sector. Austerity measures generally refer to the measures taken by governments to reduce expenditures in an attempt to shrink their growing budget deficits“.

Whilst dictionary.com tells us “strict economy”

Both apply here!

So when I am looking at an article in the Guardian by Heather Steward called ‘Austerity isn’t ‘good housekeeping’: it’s dogmatic, risky and unjust‘ (at http://www.theguardian.com/business/2015/jun/07/austerity-isnt-good-housekeeping-dogmatic-risky-unjust), it is time to get a few things out of the way. To help me, there is a source I used for part of this, which is at http://www.economicshelp.org/blog/5509/economics/government-spending-under-labour/. You see, in the time 1997 – 2010 several things happened, even though around 2007 the total debt was at a record low, the increase in spending has changed that. The debt is getting out of control, plain and simple. Governments (both sides) tend to hide behind GDP percentages to validate their spending, yet, in the previous conservative government, it was at 40% of GDP, by the time Gordon Brown was done, it was at 45% of GDP, considering that the UK GDP is decently high, that 5% amounts to a lot. Yet, that figure does not tell you the whole picture.

The UK public sector debt went in the period 2008 – 2010 from around 36% to over 65%, which is massive, this current government has been adding to that, but they are trying to stem that tide, which is not done overnight. Now this is not me blaming Labour (which is always fun), Health care spending almost doubled in real terms between 1999 and 2010, which is a Grim Reaper reality. Some were massive bungles by labour, but the added reality is that the UK population is growing old, that is just a natural part and we have always known that. So there is no blame, but it is therefore of a much higher importance to get a handle on it and none of the choices are nice ones.

You see, the source gives a possible connection, but not the reality behind it. We see the mention whether Keynesian economics are to blame, with the quote “Keynesian economics calls for counter-cyclical spending and deficits. Thus, in a period of strong economic growth, Keynesian economics would advocate balancing the budget or even pursuing a budget surplus“, but that is the problem, the politicians, in the era 1997-2004, in such a ‘good’ climate did not adhere to that. The GDP debt is evidence of that. You see, to some extent, politicians are like children, give a 17 year old boy a credit card with one million pound, stating that he must be careful, and that person will find a reason to get the PS4, the Xbox One and get personal biology lessons at the ‘Steam and Sun Health Club’. At which point that person is feeling that the good life is here, alas, at some point the invoice is due and whilst it is not getting paid, the interest is getting paid from the credit card, dwindling reserves even further, this is EXACTLY where Greece is at!

So now to the first article as mentioned in the beginning!

“the spending squeeze the Tories now hope to implement, starting in the current financial year, is intense, as the spreadsheet wizards at the Institute for Fiscal Studies made clear last week. Shortly before Osborne’s statement, Carl Emmerson, the IFS’s deputy director, warned that achieving the Tories’ planned cuts would be “anything but easy”” Here I agree, it will not be easy, it will be hard and it will be even harder on the people, the issue is however that £1.56 trillion comes with the added issue that at 1%, this bill gets an added 15.6 billion in interest, however, the interest is not 1%, it is higher, so we see that the annual cost of servicing (paying the interest) the public debt amounted to around £43bn (which is roughly 3% of GDP). In an age where some people get instant orgasms from reporting a 0.2% increase in GDP, they seem to forget that this amounts to the part that the UK is annually down 2.8% of GDP. If we act harshly (really harshly) it can be dealt with and even be reduced! Which is the real deal. That interest is benefitting banks and foreign investors. It boils down to ‘money for free’. So now we get the second quote “the belt-tightening is likely to be profoundly unfair. Osborne has repeatedly said his cuts plan will involve a £12bn reduction in the welfare bill. Since pensioners are protected, and out-of-work benefits are a relatively small part of the £250bn social security budget, much of the burden is likely to fall on low-wage workers and their children” I agree, it is very unfair, but when the economy was high, no one was shouting loudly to decrease spending as bad times are always around the corner, no one stopped Gordon Brown to give away the keys to the kingdom, which is what he pretty much did!

So, the term ‘pursuing a budget surplus’ sounds nice, but politicians will avoid bad news whenever they can, so cutting down on expenses will only be done when there is no other option, and preferably in the 11th hour, whilst there is no guarantee that there is a surplus at that point to work with!

“More austerity is risky at a time when recovery appears to be fragile against a background of the bubbling Eurozone crisis” this is a clear misrepresentation. You see, the statement is true, but there is no ‘fragile recovery’ at present, Greece is making sure of that by not doing its part. Which is exactly why the UK is contemplating getting out of the EU in the first place. The bulk of the Euro nations are all not balancing their books and getting out now might be the only way to preserve the little gain the UK can get. Now we get to another ‘failed’ view. It comes from Nobel Prize winner Amartya Sen. The statement is “A nation’s debts are mainly owed to someone else within the same society – for example the pension-holders whose funds are stacked full of gilts“. Is that so Mr Sen? Well, if you did your homework on this then please elaborate where the 1.5 trillion in UK debt is? I feel 99.324% certain that a massive amount is in other hands, not in the hands of pension holders, in addition, with the annual increase of needed funds over the next two decades, that amount is about to dwindle to record lows really fast, so where is all that debt?

The next statement is a view that I oppose “a report from the International Monetary Fund, rarely considered a hotbed of fiscal recklessness, warned about the risks of trying to tackle a country’s debt burden too quickly“, what is too quickly? You see 1.5 trillion is not going away overnight, it will take 2-3 decades to truly slim it down, so for the next generation, someone is walking away with £43bn a year, so we should get the debt down soon, preferably by a lot because the annual interest bill is around 7% of the received revenue in 2014, that whilst George Osborne spent 15% more than received, so to cut back on that increasing debt austerity seems to be the only answer.

Now we get the next issue “Paying them down rapidly distorts the economy too much to be worth the risk“, the risk to whom? To banks not getting ‘free’ money? Debt is a kicker, it always has been it has never been different. We will never be completely out of debt, but the debt at present is unacceptably high. You see a debt driven economy is based on the illusion of never ending growth. How did that work out in 2004 and 2008? In that light, how is it working out for Greece? They can no longer pay their bills. Whatever they get now in bail-out will be swallowed by debts and interests before Q3 ends. So, when I read “Debts should be “reduced organically through growth, or opportunistically when less distortionary sources of revenue are available”, the IMF’s researchers argue“, I am reading more misinformation. The theory sounds nice, but in the time when there was the option of surplus NOT ONE government created surplus. President Clinton was the only one who got a true surplus, after that due to circumstances the US could not foresee, the debt went completely out of control. In reflection on Austerity, Germany did tighten the buckle and got part of its debt down, which is why they are in a better position at present.

So this is the first article, Heather Stewart is not stating anything untrue, but the article is missing a lot and some of these points I very much disagree with (figure me, disagreeing with a Nobel prize winner, whilst I have no economy degree).

Now let’s have a go at the second Nobel Prize winner. In this case Joseph Stiglitz, recipient of the Nobel Memorial Prize in Economic Sciences and the John Bates Clark Medal. The article that in centre of this is ‘Greece’s creditors need a dose of reality – this is no time for European disunion‘ (at http://www.theguardian.com/business/2015/jun/05/greeces-creditors-need-a-dose-of-reality-this-is-no-time-for-european-disunion). The first paragraph is the very notion of the beginning of my disagreement. “Athens has met its creditors’ demands more than halfway“. And we care….why? Why is Athens not meeting those demands 100% of the way? You see, Greece took the debt, it went back to the markets and sold 5 billion more in bonds (I still have not figured out the name of the idiot allowing for that act of stupidity). Greece vowed to make payments again and again, yet at present the already deferred TWO payments. Now, let me be frank. They were allowed to do that! The rules were there and they played by the rules, yet we all know that Greece is out of money, there are no more options. This will be the first time that a nation goes extinct through economic inaction! Even when Syriza won, instead of going after their predecessors, instead of sitting down and getting to the tax evaders, we see (at http://www.thetimes.co.uk/tto/news/world/europe/article4358352.ece) “The country’s financial crimes police, the SDOE, had begun shredding scores of documents linked to cases of corruption. What remained was stuffed in bin bags and discarded outside the bureau’s headquarters in Athens, in public view” the title ‘Greece shreds files on tax cheating by rich and powerful‘ Kostas Vaxevanis reported this on February 19^th 2015. So, why was there no prosecution here? The entire debacle on tax evasion has been treated like a joke by 4 previous administrations, so as they cut their own jugulars, why allow for just a half way approach? So far this Greek administration has not done anything to give ample faith that there will be any level of resolution. Then we get “Greece has made clear its willingness to engage in continued economic overhaul, and has welcomed Europe’s help in implementing some of them“, is that so? So far there has been no overhaul at all, the public sector cuts were undone by rehiring. Greece needs to lower its cost by a massive amount. In all that time, which of the over 2000 of wealthy Greeks ended up in court for tax evasion (from Swiss bank accounts), perhaps one? Oh the Journalist Kostas Vaxevanis ended in the dock too, a massive miscarriage of Justice as I see it!

The one part I do agree with is the dangers of Greece exiting “I believe such views significantly underestimate the current and future risks involved“, this is true, but Greece can no longer be trusted to do what they stated to do and as such, some of the players prefer to get out, before the total debt grows with another 20% which is basically no more than a year away. There is not concrete evidence that the economy will truly pick up and those who have enabled this debt driven event are not held to account either (that small matter of a massive amount of Greek bonds on the market).

Then the last part “The ECB president Mario Draghi’s confidence trick, in the form of his declaration in 2012 that the monetary authorities would do “whatever it takes” to preserve the euro, has worked so far. But the knowledge that the euro is not a binding commitment among its members will make it far less likely to work the next time“, yes, how did it work? By spending a trillion or more one areas that are still not recuperating and will need at least a decade to regain the trillion that was spent in under a year? How is that anywhere near a workable solution?

In all this, whatever should work might have worked to a degree if politicians would control their budgets and that financial institutions would not be as greed driven as they are, which is why it all failed. When we see the quote “16 banks in five years to the end 2014 reveal £30bn increase in payouts, fines and legal bills on previous five-year period to end 2013” and this is linked to a total of well over £200bn. Lloyds alone got £117m in fines, how is this linked? Well, such losses means no taxation in the books as profits are gone, whilst many involved walked out with enough money (read: bonus) to pay their full mortgage in places like Golders Green.

Mr Stiglitz never lies or misinforms, but his view is incomplete. It is very dependent on the people involved doing the right and the correct thing. Politicians and bankers tend to be not those kind of people, Greece has shown it, Gordon Brown has spent it now the Conservatives need to repair the damage, Prime Minister Tsipras is ‘forced’ to play a high stakes game, whilst those involved are no longer willing to give leeway. In my view, that game should never have been played in the first place. By setting austerity, whilst going after the Greeks and their wealth benefitting from all this was perhaps one of the few acts that could have opened wallets all over the place, that act was never done, which is why many see that meeting half way is not really an option.

Austerity might seem unfair, and it is not fair on the payers at present, but someone opened a tap whilst the bulk of those knowing what was going on should have spoken out, and spoken out very loud. This was not done, so behold the consequence of that little caper.

There is one gem in his article at the end that is part of the entire Euro mess, which is fun as I have raised it a few times over the last few years. Not bad for a person devoid of an economics degree!

He states: “Europe’s leaders viewed themselves as visionaries when they created the euro. They thought they were looking beyond the short-term demands that usually preoccupy political leaders. Unfortunately, their understanding of economics fell short of their ambition; and the politics of the moment did not permit the creation of the institutional framework that might have enabled the euro to work as intended. Although the single currency was supposed to bring unprecedented prosperity, it is difficult to detect a significant positive effect for the Eurozone as a whole in the period before the crisis. In the period since, the adverse effects have been enormous”

This is true, the one part I have an issue with is ‘Europe’s leaders viewed themselves as visionaries when they created the Euro‘. I think Europe’s leaders had nothing to do with that part. I have always viewed this change as an essential; step by the US. Their benefit of trade with a single currency was titanic in proportions, in addition, the US would keep its option to float the currency as any economy tends to do in times of hardship, whilst the nations that are part of the euro are part of a collective, which removes the option of floating a currency. This was centre in the additional growth (or diminished fall) for the US, yet, even they did not bank on the credit swap meltdown, which did hurt them. The US is getting better, but their 18 trillion in debt is choking them, even with the option to float the dollar, the Euro in the massive debt it is, can only remove the debt by paying it, which is strangling France and Italy. The UK is dealing with it, and the Euro is hurting them, but not as much as being part of the Euro is. Which is just my view on it all.

As I stated in the beginning, the articles are incomplete, misstated, not by inaccuracies, but by incompleteness, which is why people have the skewed view they seem to have at present. In the austerity path, which is unfair to some, we need to add the legal premise and the legal definitions as well as legal obstructions to remove the option of overspending to the degree that was done, we need to make sure that the law will not allow for such overstretching ever again, when that is done, we will return to times when there is hardship, but when there are good times we will all feel it too, in my view, the push of the financial sector to remove the season of ‘financial winter’ resulted in the banks getting by and the rest suffering, this must never be allowed ever again!

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June 6, 2015 · 00:05

S&M or S&H?

That is the question that should be on the minds of people everywhere! You see Self-interest and Misinformation is every bit a tool of application in the Sade-Masochistic approach that politicians use, or if we use names it would be the dialogue between Alexis Tsipras and Jean-Claude Juncker where Tsipras voices: “You wash my back, I wash yours real hard!” So as we see in the Guardian the call for ‘Sanity and Humanity‘ we must ask the clear ‘why?’ part. You see, we are now getting ‘misinformed’ by laureates and by people in the industry of high economics. They most likely want their cushy job to continue. If Greece falters that is no longer an option, because the repercussions go a lot further than Greece, even the US is now getting involved because the fallout from Greece leaving is a lot more than the people are told.

First Premise: If my thoughts were wrong, then why not let Greece out of the Euro, let it float its Drachma and slowly get back on the horse? Because virtual or not, the fallout of half a trillion whilst Italy and France are so deep in debt is a massive problem!

The names calling for this are: Nobel Prize winner Joseph Stiglitz, star French economist Thomas Piketty, former Italian PM Massimo D’Alema, and America’s Jamie Galbraith. The list has more names, but you’ll have to get to the Financial Times for that.

You see, the premise of Humanity is nice (and I am all for Humanity), but when the person involved REFUSES to take decent steps towards the solution, the sanity part is to just cut them lose, but as I stated in my first premise, that is not an option, the negative consequences are scaring too many ‘profiteers’ as I see them!

The first untruth by these writers (bleeding hearts seem to be the most apt title). We see the quote: “Six months on, we are dismayed that austerity is undermining Syriza’s key reforms, on which EU leaders should surely have been collaborating with the Greek government: most notably to overcome tax evasion and corruption“. I would call this a lie of the first order! Why am I calling it that loud?

The Greek government has done close to nothing to overcome tax evasion and corruption! Which politicians from former administrations have been arrested and are investigated for squandering government funds? We saw one case of tax evasion for 1.2 million, which is 0.000028436% of the debt, it does not even cover the smallest part of the interest bill.

The next statement is: “Austerity drastically reduces revenue from tax reform, and restricts the space for change to make public administration accountable and socially efficient” the second expression of laughter! Greece has next to nothing in revenue from taxation, let alone revenue from tax reforms, in addition public administration is not holding anyone accountable, the Greek public administration is a joke no one wants to touch (let alone the Greeks), so the claim made here is nothing more than an empty sentence.

Now we get to an interesting part: “It is wrong to ask Greece to commit itself to an old programme that has demonstrably failed, been rejected by Greek voters, and which large numbers of economists (including ourselves) believe was misguided from the start“. Well, if it was misguided, then the ‘friends’ you have in Goldman Sachs and other financial pool party’s should not have borrowed them the money to begin with! There is no doubt that Syriza has a bad deal, but they wanted the bad deal! They wanted to govern at the expense of everything and everyone! New Democracy under Antonis Samaras was actually trying to sort things out. In addition, the Greek voters do not get to reject this. They voted the people in that spend the money with zero foresight or consideration of the consequences, the Greek people now get to pay for it all. You see, someone spend over 400 billion, it went somewhere. That part is due and the loans made afterwards to get things ‘rolling’ was never realistic, but the top economists were all eager to get the kickbacks that they refer to as consultancy and commission! When a bank allows for events THIS STUPID to get out of proportions, in the end, I do not deny that Tsipras and Varoufakis are playing a clever game. They are willing to let the ‘other’ players collapse. It is a ‘pay our debt or else’ approach. It is not acceptable! And I reckon it should not be tolerated on this level.

What would be acceptable, if the entire debt is paid for by banks, monitored by oversight commissions to ensure that the people (their consumers) never get any additional charges! That banks would need to come up with the money from their own profits and dividends. That I would find acceptable, but guess what? The ‘friends’ of those who signed this letter will not accept that and they will reject that in a heartbeat, so here we see Joseph Stiglitz, Thomas Piketty, et al all writing about humanity, when it should be about accountability!

Now we get the half-truth in all this “Clearly a revised, longer-term agreement with the creditor institutions is necessary: otherwise default is inevitable, imposing great risks on the economies of Europe and the world, and even for the European project that the Eurozone was supposed to strengthen“, is that so?

My second premise: Yes there will be risks, but the one I see is a more total collapse when the debt is shouldered by those already in too deep. That part is not mentioned and moreover that risk has been trivialised by several players all over the Eurozone field, including by the top of the IMF and a few top players in the US too.

And I reckon that the quote “Syriza is the only hope for legitimacy in Greece” can be discarded out of hand, they actually escalated it all, in all this, as I see it, New Democracy was the true hope for Greece.

Now we get a quote that is truly a worry “Consider, on the other hand, a rapid move to a positive programme for recovery in Greece (and in the EU as a whole), using the massive financial strength of the Eurozone to promote investment, rescuing young Europeans from mass unemployment with measures that would increase employment today and growth in the future“.

My third premise: First of all, this is not the first time that approach is used, Adolf Hitler used it in 1935; how did THAT turn out? Now, let’s not go all Nazi on this and consider the issues in Spain, Italy and France? Do you have solutions for them too? How would you like to voice this in reality? That is the problem, you see, jobs come from places that have income, that have product and that is selling, that allows for hiring and paying staff! This is the entire issue, there are no jobs, because people are not buying, because after the cost of living there is not enough money to spend.

It is not a math issue that requires a Nobel price, a mere abacus, or just common sense, paper and pen could have worked that out! In addition, the prediction I made in my article ‘An Olympic steeplechase‘ on May 26^th 2015 (at https://lawlordtobe.com/2015/05/26/an-olympic-steeplechase/), two days later Deutche Welle publishes this “‘We’ve been receiving reports of a decline in bookings, especially from Germany’, says the tourism manager to DW“. I saw the writing on THAT wall! In addition there is “Andreadis quotes the latest statistics from the German Society for Consumer Research (GfK): Bookings in Germany have declined by 2 percent based on annual figures“, two percent does not seem that much, but in an economy where the Greek GDP is making another step towards 0 and lower, 2% is a lot. The issues with refugees isn’t helping Greece either. The British media reported that Kos, a Greek tourist attractor has become a ‘disgusting hellhole’, which would push tourism down further. Influx from both Russia and Scandinavia is down too, but at present unknown by exactly how much. It basically means that tourism will not bring the bacon to the outstanding invoices for Greece, apart from collecting the taxation on it all that is.

The final misrepresentation is “Like the Marshall plan, let it be one of hope not despair“, it is a misrepresentation, because the Marshall plan did the right thing, whilst the people did their part, the governments were in better control, within the Euro at present not one government has been holding pace with the expenditure and keeping a proper budget, which gets trivialised by those administering it and the extra spending is overstretched again and again.

My fourth premise: So this is not about Mr Marshall and his amazing achievement, this is about the Greek government actually doing something. Pushing the invoice out 30 days is not a solution. In addition to that, nearly every person and toddler can see that the 7 billion that is supposed to be freed up will after paying the civil servants their 2.2 billion in outstanding parts will not even cover all the bills until the end of the year and whilst Greek taxation is not being addressed, another interest invoice of 22 billion will be due in under 10 months. Yes, 22 billion just for the interest payment!

So as we are misdirected by some people hiding behind the fact that IMF payments have been overdue before, the issue here is that Greece is now TWO payments behind, totaling a little over 1 billion, part one due in two weeks! So as the Greeks vow not to leave the Euro, the question will soon become, do they actually have a choice in this, because when payments are not forthcoming, there must be repercussions, the one part Greeks are really good at denying.

I must of course also mention that there is debt restructuring document, which is regarded as being ‘hopeful’. The view comes from Peter Spiegel of the Financial Times and the quote is “The restructuring plan is ambitious, offering ways to reduce the amount of debt held by all four of its public-sector creditors: the European Central Bank, which holds €27bn in Greek bonds purchased starting in 2010; the International Monetary Fund, which is owed about €20bn from bailout loans; individual Eurozone member states, which banded together to make €53bn bilateral loans to Athens as part of its first bailout; and the Eurozone’s bailout fund, the European Financial Stability Facility, which picks up the EU’s €144bn in the current programme“.

The fifth premise: My issue on these document is that they are ALWAYS based on too positive an outlook, which is why they usually fail. In addition, Greece will at least need another 20 billion, that is if the 7.2 billion that they are trying to get their fingers on is already in the given picture, which is not a given at present.

The quote “to get back under 60 per cent of GDP” is just insanely unrealistic. You see, to do that you need to fix expenditure by a lot, the one part the Greeks utterly refused to do, in addition, they just rehired the people they had let go, so expenses are back up too!

As Peter Spiegel (@SpiegelPeter) states: “It also involves eliminating a chunk of Greece’s bailout debt“, which is fine by me as long as the BANKS pay for that part, if it comes from Goldman Sachs’s pocket so much the better! Let’s not forget that part of this entire mess was because Goldman Sachs helped Greece mask the actual debt it had (source: Der Spiegel) on February 8^th 2010! How much forward momentum did Greece achieve since then (like lowering debt)? NONE!

I will say again that this is all unfair on the Greek people, but they did elect this lot into parliament, as they elected the previous bunches, how about knocking on those doors to get at least some of those funds back (which also lowers debt)?

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June 5, 2015 · 20:58

In reference to the router

Is this a case of Mythopoeia? Am I the JRR Tolkien of bloggers (I wish) and writer of facts by a non-journalist? It might be. You see, this is all about a mythological theme that is constant as war is, because war never changes! Its concept and construct is as old as the first ‘soldier’ who combined a flint and a stick and started to spear people. In this mindset it is all about the other person, an archaic approach to the issue that does not lie beneath, it’s in front of the person not seeing what is right in front of him/her.

It is also the first evidence that we consider the concept ‘old soldier never die, they simply fade away’ to be no longer a genuine consideration. In this day and age, the old soldier gets his/her references deleted from the database of considerations. We remain with nothing more than an old person that cannot connect or interact, the router won’t let him/her!

This is how it begins, this is about certain events that just occurred, but I will specify this momentarily, you see, it goes back to an issue that Sony remembers rather well they got hacked. It was a long and hard task to get into that place Login=BigBossKazuoHirai; Password=WhereDreamsComeTrue;

Soon thereafter no more firewall, no more routers, just the bliss of cloud servers and data, so much data! The people behind it were clever, and soon it was gone and the blame fell to the one nation that does not even have the bandwidth to get 10% past anything. Yes, North Korea got blamed and got fingered and in all that the FBI and other spokespeople gave the notion that it was North Korea. The people who understand the world of data know better, it was the only player less then least likely to get it done, the knowhow and the infrastructure just isn’t there. I did have a theory on how it was done and I published that on February 8th 2015 (at https://lawlordtobe.com/2015/02/08/the-next-cyber-wave/) in the article called ‘The next cyber wave’. It is only a theory, but it is a lot more reliable and likely than a North Korean incursion because of a movie no one cares about.

The FBI has plenty of achievements (FIFA being the latest one), but within the FBI there is a weakness, not a failing, but a weakness. Because the US has such a niche setup for NSA, CIA and other Intel officers, their offices are for the most still archaic when it come to the digital era. They go to all the events, spend millions on courses and keep up to date, but for the most, these people are following a wave that is one generation old, they follow, they do not lead. The entire Edward Snowden issue is clear evidence. I remain to regard him a joke, not a hacker, so far he is just placed on a pedestal by the press, who have created something unreal and whatever they do not to change it, it will only cut themselves. That is the fall-back of creating an artificial hero who isn’t one.

Yet, this is not about Snowden, he is only an element. Now we get to the concept of paleo-philosophy and how it hits government structures behind IT. This all started yesterday (at http://www.theguardian.com/technology/2015/jun/04/us-government-massive-data-breach-employee-records-security-clearances), where we see ‘OPM hack: China blamed for massive breach of US government data’. Now first of all, if one power can do this, than it is China! France, UK and a few others can do it too, but let’s just assume it is not an ally! Here is where the entire paleo-philosophy comes into play. You see, even though war remained constant, the players changed and for the most, it is no longer about governments. This is all about corporations. Even the movies are catching on, there is no true side to Russia or China as the enemy. Yes, their students might do it to impress their superiors/professors, but that would just be there defining moment. Ethan Hunt is not hunting a nation, it is now hunting conglomerates, large players who remain and require to be zero percent taxable. Those are the actual ream enemies for the UK, the US and China. You see, I am not stating it was not China, I am only questioning the reasoning and other acts. You see, I tried to get an answer from State Secretary John Kerry at +1-202-647-9572, who does not seem to be answering the phone, neither is his right hand man, Jonathan J. Finer at +1-7234 202-647-8633. This is not a secret, the State Department has the PDF with office numbers, locations and phone numbers in an open PDF and you can Google the little sucker! In the age where loads of stuff is open the right person can combine tonnes of data in a moment’s notice.

So can the larger players! The quote in the beginning is the kicker “the impact of a massive data breach involving the agency that handles security clearances and US government employee records“, you see loads of this information is already with intelligence parts and counter parts. I reckon Beijing and Moscow had updated the records within the hour that the next record keeper moved into the office. Yet, now in 2015, as the engine starts up for the presidential elections of 2016, that data is important to plenty of non-governments, that part is not seen anywhere is it?

Then we get “A US law enforcement source told the Reuters news agency on Thursday night that a ‘foreign entity or government’ was believed to be behind the attack“, which is fair enough, so how was the jump made to China? You see, only 5 weeks ago, the Financial Review gave us “US Treasury pressures Tony Abbott to drop ‘Google tax’” (at http://www.afr.com/news/policy/tax/us-treasury-pressures-tony-abbott-to-drop-google-tax-20150428-1mu2sg). So as the Obama administration ‘vowed’ to crackdown on Tax avoidance, they are really not the player who wants to do anything to upset those luscious donators of pieces of currency paper (loads of currency paper), so a mere 6 months later the US, is trying to undo what they promised, whilst still trying to push the TPP papers through the throats of consumers everywhere, what an interesting web we weave!

You see, for the large corporation that list of who has access to papers, and his/her situation is worth gold today, for the Chinese a lot less so. Yet, I am not writing China off as a possible culprit! Let’s face it, they are not North Korea, which means that they do not need to power their router with a Philips 7424 Generator! So at this point, I would tend to agree with Chinese foreign ministry spokesman Hong Lei who branded the accusations “irresponsible and unscientific” at a news briefing on Friday.

Now we get to the quote that is central to the entire paleo-philosophy matters: “DHS is continuing to monitor federal networks for any suspicious activity and is working aggressively with the affected agencies to conduct investigative analysis to assess the extent of this alleged intrusion”, first of all, I am not having a go at the DHS. I have done so in the past with good reason, but this is not that case. I think that in many areas government in not just falling behind, it started to fall behind in 2005 and has been falling behind ever since. Not just them though, organised large corporations like Sony, CVS Health, Valero Energy and Express Scripts Holding are only a few of the corporations that do not even realise the predicament they are in. The Deep Web is not just a place or a community, some of the players there have been organising and have been sharing and evolving that what they know. A massive pool of information, because Data is money, governments know it, corporation know it and THE HACKERS know it too. For them it is all relative easy, they have been living and walking the cloud data with the greatest of ease they can conflict data points and flood certain shared data hosts, only to achieve to get behind the corridor and remain invisible whilst the data is available at their leisure. In that environment the intelligence community is still trying to catch up with the basics (compared to where the hackers are). You see, whilst people in corporations and government are all about politics, those hackers were bout mayhem and anarchy, now they are figuring out that these skills get them a wealthy and luxurious lifestyle and they like the idea of not having a degree whilst owning most of Malibu Drive, a 21^st century Point Break, where the funds allow them to party all the time. Corporations got them into that thinking mode. So were the culprits ‘merely’ hackers or was it a foreign government? That is the question I am unable to answer with facts, but to point at China being likely is event less assuring. Consider who gains power with that data? This much data can be up for sale, it can be utilised. In the premise of both, China is not unlikely, but what is ‘more likely than not’ is also a matter, even though that question is less easily answered and without evidence (I have none) any answer should not be regarded as reliable!

Now we get to the quote “Embassy spokesman Zhu Haiquan said China had made great efforts to combat cyberattacks and that tracking such events conducted across borders was difficult” it is correct, it matters and it is to the point. In addition, we must accept that trackers can also be set on the wrong path, it is not easy, but it can be done, both the hackers and China have skills there, as do the NSA and GCHQ. Yet, in all that, with the Sony hack still fresh in memory, who did it, which is the interesting question, but WHY is more interesting. We tend to focus on clearances here, but what else was there? What if the OPM has health details? What is the value of health risk analyses of 4 million people? At $10 a month that is a quick and easy half a billion isn’t it?

You see, the final part is seen here: “DHS is continuing to monitor federal networks for any suspicious activity and is working aggressively with the affected agencies to conduct investigative analysis to assess the extent of this alleged intrusion”, This is to be expected, but the intruders know this too, so how did they get past it all again? That is the issue, I gave in my earlier blog one possible solution, but that could only be done through the inside person, to be clear of that, someone did a similar thing in the cloud, or in the stream of data, in a way that it does not show. Perhaps a mere pressure of data in a shared cloud point is all it took to get past the security. How many data packages are lost? what intel is gained from there, perhaps it is just a pure replication of packages job, there is no proper way to monitor data in transit, not in cloudy conditions, so as we see that more data is ‘breached’ we all must wonder what the data holders, both government and non-government are not ready for. It is the data of you and me that gets ‘sold’ who does it get sold to?

So as we see an article of a data hack and a photo of routers and wiring, which looks geeky and techy, was this in reference to the router? Or perhaps it is in reference to a reality many in charge are not ready to face any day soon, and in light of the upcoming US elections of 2016, some of these politicians definitely do not want to face it before 2017. Like the Google Tax, let the next person fix it!

A preferred political approach that will allow them to lose exclusivity of your data real fast!

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Tagged as Australian Financial Review, China, CVS Health, Deep Web, DHS, Express Scripts Holding, GCHQ, Hackers, Hong Lei, Jonathan J. Finer, North-Korea, NSA, OPM Hack, Philips 7424 Generator, reuters, Sony, Sony Hack, State Secretary John Kerry, the Guardian, TPP, Valero Energy, Zhu Haiquan

June 3, 2015 · 19:18

Dr Temp MD

It did not take too long for things to get outspoken, the elections are gone, Greece is against the wall making all kinds of claims regarding Blackmail and creditors and the NHS issues are also waking up. Actually, it is the Health Secretary that is waking up. Actually, that is a little too unkind. Jeremy Hunt was not asleep, let’s just state that the elections slowed issues until the ‘after’ election moment. That moment is now!

I have kept my eye on the NHS issues that play. The NHS IT, which partially collapsed the NHS due to 11.2 billion under labour, which impacted all sides of the NHS, yet it is not all political, the NHS has many sides that do need addressing. It was not their fault, I am not laying blame here, but the pressure that the NHS gets from binge drinking must stop!

If we go by the BBC (at http://www.bbc.com/news/health-32418122), we might see that a detox centre is saving millions, which sounds nice in theory, yet the problem is not the saved millions, it is the £3.8bn a year that is a concern, a worry and the NHS can no longer afford it. So we can go two ways, we can shift the problem with drunk tanks like in ‘the good old days‘, which suits me just fine, and if you have enough money to pay for private treatment, that that is fine too, yet here we see a debatable injustice, should the rich be non-accountable? Do we approach this from a ‘if you can afford it, fine!‘ which amounts to the same. When we see statistics that 1 in 3 for A&E is alcohol related, than there is a clear issue, if there is the additional pressure that the weekend gives up to 70% of the cases which are alcohol based, we have an issue.

There are of course other means, three strikes in the weekend and your academic options are forfeit, it is an option, but will it actually make a difference? The article also has a worrying side, the quote “as much as 50% of the patients [that we see], were not open to any services and some of them had never been seen by alcohol services before“, in that quote Dr Chris Daly is illustrating that the drinking population is changing, which makes for an uncomfortable truth, is it truly alcoholism, or escapism from austerity and bad economy? It makes all the difference, but the NHS is still getting hit, so it is time to seek alternative solutions, but where to go? You see, many solutions is about shifting blame and responsibility. In my case it is about shifting responsibility and in my view, the responsibility is given to he/she who drinks! They get the bill or go into the drunk tank. My view has not unique, I did not know this last year when I championed the idea, it seems that in 2013, the Association of Chief Police Officers (ACPO for short) coined that same idea, those who get thrown in are fined and that pays for the upkeep. The ACPO is now getting replaced by the NPCC (National Police Chiefs’ Council).

I know that there are issues and it is not the best solution, but in a perfect world, the large corporations would not be ‘screwing over’ the nations it is draining of income and as such, the tax coffers could have paid for it all, but that is not the case at present. When a trillion in commerce is taxed at less than 1%, any government comes up short and that is exactly where the UK is now and changes, drastic ones will need to be made. If the pressure of 1,000,000 patients goes away, staff will be under less pressure, £3,500 per shift doctors become less on an issue, which saves additional coin and the NHS can than better be reassessed. The problems of the NHS will not be gone, but the £2Bn gap it faced as was stated on the BBC in June 2014 would suddenly drop to almost zero. How is that for a good idea? Now if we can find a few options for generic medicine by cooperating stronger with India and the NHS will suddenly show signs of life again. Now, there is every chance that people will object. They will mention that there are medical risks and I agree, but guess what, the ‘adult’ who thought he could quickly have 15 pints was supposed to be an adult, now he/she gets to see the consequence of this choice. Should the patient ‘pass away’ than we could also see a drop in rental pressure, which helps more people, and possibly another job opens up, lowering unemployment rates further. Now, if you think that this is over the top, than I will not disagree, but my side states, ‘well, stop them from binge drinking!’ It might seem hard, but dying solves everything!

Hey, that could make for a nice health care advertisement.

The doctor walks into the waiting room, states “I apologise, your … passed away”, “I have a cousin who is very interested in the apartment, and we gave his job details to our janitor, he thought it was a cool job, I heard he starts on Monday!”

Then it fades out and we see the slogan “Alcohol kills!” and under it we see “your apartment and job were filled quite quickly! Only your mother/spouse will possibly miss you”, is that not a killer advertisement?

No, it is not! But it seems that being soft around this subject is not solving anything either, that part has been proven for some time now. I think I know what you will state next. ‘It will be about the alcoholics and their mental health!’ This could be valid, yet some studies show that binge drinking is for over 70% associated with the premise that it is ‘really fun’. Most doctors and nurses disagree and they are NOT laughing!

So, even though I feel that it is not fair on the population at large, the NHS can no longer facilitate any of it. There is a small shimmer of hope, consider that the drunk tank comes with a £150 fee to get out, that invoice should be scary enough, because there will be no more money for food, rent and a few other things, which will reset the focus of such a person. Perhaps once is all they need to get a grip on the consequences, apart from looking like ‘road kill’ and smell like nothing anyone want to be next to, so that person will hopefully sober up, has to walk home and will have no other options for a little while. I personally am not convinced it would work, but if the binge drinking group is lowered by a mere 5%, we would see massive savings, deep into the millions, which opens up the debate, is it worth the risk? I would say: “look at Greece, inaction has now pretty much made them slaves to the creditors for the next 5 generations”, as binge drinking is self-inflicted, I would go for the yes vote, but in all this there is another side, how are they able to get into the binge drinking habit? There are a few options that comes to mind, but this is not about binge drinking, this is about the NHS.

Alcoholism and drugs are only a few factors, the NHS has a massive problem which for one part was addressed in the article.

We now get to the issue that is hard to oppose (but I will try). The quote “Dr Mark Porter, chairman of the British Medical Association, said the NHS’s greater reliance on agency staff “is a sign of stress on the system and the result of poor workforce planning by government”“. Is that entirely true? I think that there is a hidden non-mentioned fact here. The NHS stresses have been an issue for a longer time and yes, there are issues, but let’s go over all this. Simon Stevens is the government CEO now (that title never stops making me chuckle), before that it was David Nicholson and before that it was Lord Nigel Crisp. I want to step over all the scandals as they are just getting in the way of the issues. You see, the entire chuckling bit is an issue. It is hilarious to see a political appointed CEO, I personally believe that it is a recipe for disaster with a 100% chance of leaving a sour taste in the mouth, one way or another! It needs to get a more commercial appointment with a new board, a board of executive advisors, one political, one financial and a few medical advisors. It would be great if the CEO is a medic, but the UK is short of them already, pushing them to a governing desk is not really a solution, which of course is a little shoulder thump to Dr Mark Porter (with the friendliest intention). Of course, the quote by Shadow minister Andy Burnham is equally entertaining “mistakes by the Conservatives had led to the expanded use of agency staff“, which sounds a little over the top as the staff issues would be resolved by an IT overhaul, which Labour fumbled whilst spending over 11 billion, so that solution did not pan out and now, the conservatives are still fixing the mess. In addition, the statistics show a sheer increase of costs. In the term of Labour 1997 – 2010, the costs for the NHS doubled. The earlier mentioned IT failure being a chunk of it. Before Labour the hospital services represented 4.9%, whilst by 2010 it had grown to 21%, which is like 400% more. Yet, be careful and do not just blatantly accept my numbers either! My source (at http://sticerd.lse.ac.uk/dps/case/spcc/wp02.pdf) has a few issues, and there is a lack of clarity on reasons here. However, pharmaceutical services went down from 43.5 to 39.8 and even in 2010 to 31.8, which is good, but the history of generic pharmaceuticals is not clear in this regard, which is reliant on the ending of patents. Dental services has a fluctuation around 5%, so there does not seem to be a lot of options here. Yet, we must give clear admittance that there are elements that Labour could not foresee. The NHS costs went from 6.6% of GDP in 1997 to 9.6% in 2010, which happens when people grow old and do not die, they require treatment. The adjusted GDP was £279Bn in Q1 1997, £373Bn in Q4 2010, which means that the shift is a lot more than 3%, it is an additional £11Bn on top of the 3% shift. That shift in this ‘greying’ population will only get stronger. I am all for giving them the best care, they did their job. Which made me look at the drunk tank for those who have not done anything yet.

Yet, there is also other evidence. One part is found in the Public expenditure on health and care services (at http://www.publications.parliament.uk/pa/cm201213/cmselect/cmhealth/651/651.pdf). On page 35 we see “The evidence presented to the Committee demonstrates that the measures currently being used to respond to the Nicholson Challenge too often represent short-term fixes rather than the long-term transformations which the service needs“. I do not disagree with that statement, yet the commercial side remains an issue. Sir David Nicholson needed to cut 20 billion, or more. The Nicholson challenge was there to (attempt to) achieve this. When we see the political side whinge left, right and decently less from the centre, we need to accept that they are not paying the bills, when was there an agreement on both sides on how much the NHS was allowed to cost? Drastic cutbacks were the challenge and I am not stating that it was a great or the right solution, but it was close to the only solution. By the way, these cutbacks got started under the previous administration, headed by none other than Andy Burnham, so as he is stating issues with agency staff, I need to voice ‘howls of deriving laughter!’ it amounts to this blogger calling MP Andy Burnham a dunsel. You signed off on the need to cut back, you now do not get to steer the conversation in that manner Mr Burnham! The additional quote in his name is “Andy Burnham, the shadow health secretary, has further complicated the picture by suggesting a reformed NHS may need less than £8bn“, in what universe? After we dehydrate the drunks and drown the elderly? The mere increase in needed funds over the term 1997 – 2010 is an adjusted £11 billion that is just the increase, not including the required amount, which was already £18 billion in 1997. If I was a mean man I would point out to Mr Burnham that Excel does not treat the mean and the sum function in the same manner. So the sum over 4 years is not the same as the average per year per 4 year term. As stated, I am not a mean (not the same as average) person, so I will not say that to Andy Burnham MP for Liverpool. However, we need to be fair, Liverpool has its share of famous people, but perhaps no famous science people? In music there are the Beatles, in comedy there is John Bishop, there are actors, writers, but perhaps not any math people? Ah Darn, the famous John Horton, who came with the Combinatorial Game Theory (CGT) as well as revelations in Quantum mechanics. Mr Burnham, you should have known better!

Back to the NHS issue we go!

You see, it is in its most basic concept a simple equation BUDGET = SUM(COST1,COST2,,,COSTn); budget is known and for a while budget had to go down, which implies (using the word ‘means’ here might be confusing) that costs MUST go down. The biggest ones are usually location, maintenance and personnel. Location can usually not be tempered with, maintenance can be looked at, but with too much specialist equipment in NHS locations, there is not too much you can do and these devices usually come with a servicing fee that is not the cheapest one and with 20 devices you are usually looking at 15+ contracts. There are more devices and parts that fall under maintenance, yet there tends to be minimal movement here, so personnel remains. It is not fair, I completely agree, yet the list tends to be not that large and staff is usually the first cut (or not replaced). We all agree that it is short sighted, which The Health Committee agreed with. By the way, how many committees are there in the NHS and how much do those events cost? I’ll bet you that they are not playing for the cat’s violin, so there are costings there too. So as we see the following “As set out in the Health and Social Care Act 2012, each CCG must have a governing body. This body must have an audit committee and a remuneration committee“, now what will that part cost?

So you see, the list goes on and on. Some costings are a given, some are not and the needed funds increase every single year. In 10 years, the percentage increase over the GDP growth amounted to those eleven billions alone. We would like to do it better, more intelligent and cheaper, but how? If healthcare depends on high quality, there was never that much leeway to begin with. So are we left with the inhumane choices? I refuse to believe that, but to start to be less pampering to the binge drinkers seems in my humble opinion to be an acceptable first step.

I also believe that Jeremy Hunt is on track with the agency staff cuts, which is outrageous, but where to get the people then? I mentioned to him that he should consider opening the door to Australian medical graduates. Even though there is a rural shortage (no one wants to go there) the urban shortage is less true shortage. Perhaps Canada has that same option? What if these graduates work in the UK for a few year, for a decent income and an annual percentage payment to their study debt? It is usually easier to find graduates willing to be a little adventurous for a few years. It could work (at least lessen the pressures) and it will be a lot cheaper than £3,500 per doctor per shift, that will be an absolute given. If this solution works in getting the issues of the boil, the agencies will have no other option but to lower prices, their prices are linked to demand plain and simple. The NHS is literally experiencing the pounding the CIA got in 2003-2010, analysts went external as their income went up by 250%-400%, which was all the rage back there! So as the NHS HR literally knows how a CIA HR representative feels, we giggle a little more. But it is no laughing matter, analysts are 13 a dozen, Medical practitioners and nurses are an entirely different ball of wax and that equation is not easily solved.

So as the pressure of shortage remains, so will the existence of Dr Temp MD, it could even shift further into the temp direction, which spells bad times for the NHS. There is however one final part. In that Dr Mark Porter has a role to play too. The British Medical Association (BMA) is the trade union and professional body for doctors in the UK and has always ‘pushed’ for the highest standards, this was done to such an extent (before Porters time) that willing graduates from several nations were unable to get a VISA and rebuild their life in the UK, there is something to say for that ruling, but by keeping the ‘projected’ level of care so unobtainable high, the UK now faces a shortage issue. I think that these rules of immigration need to be looked at and additional solutions should be tapped into. I cannot guarantee that this will be THE solution, but it seems clear that not looking at this possibility will leave the NHS in the near death state it is now!

It is only one step, but any solution for the NHS should only be taken step by step, which is always better than no action at all.

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Tagged as ACPO, Andy Burnham, Association of Chief Police Officers, British Medical Association, Combinatorial Game Theory, David Nicholson, Dr Chris Daly, Dr Mark Porter, Health and Social Care Act 2012, Health Committee, Jeremy Hunt, John Bishop, John Horton, Liverpool, Lord Nigel Crisp, National Police Chiefs' Council, NHS, Nicholson Challenge, NPCC, the Beatles

May 31, 2015 · 00:52

Losing Blatter control

I initially dreaded today, not just because I had heard earlier that FIFA will get a few more years of bladder control, but because of the news waves that would come after. The first one that came to view was the Guardian (of course). So this is what the Guardian had to say: “The re-elected FIFA president, Sepp Blatter, has said he was “shocked” at the way US authorities targeted football’s world body and slammed what he called a “hate” campaign by Europe’s football leaders“.

Dear Mr. Blatter, are you (allegedly) insane? This is not a little get together, this is a structural failing of an organisation, where over 150 million went to personal gains. All this whilst you were in control! I suggest you wake up and consider the fact that possible events calling for criminal negligence with Sepp Blatter in the next indictment has not been ruled out yet! As for the statement “arrests were timed to interfere with Zurich congress” could be regarded as misdirection, when you send in the ferrets, you send them into the hole when all the rabbits are together!

Let’s re-attach the original indictment: fifa-indictment-webb-etal

Then we see the comment: “The FIFA president condemned comments made by US officials including the attorney general, Loretta Lynch, who said corruption in football was “rampant, systemic and deep-rooted, both abroad and here in the United States”” Is that the fact Mr Blatter? The indictment specifies 13 criminal schemes, so if you want to condemn anything, it should be your choice of organisation and your inability to prevent any of this. The articles have not even looked at the implications on the overturned appeal to release Michael Garcia’s original full report. Consider the votes who blocked this and the people who are now indicted for corruption. How many influence was there?

Consider the appeal response by FIFA (at FIFA.com) “The FIFA Appeal Committee, chaired by Larry Mussenden, has concluded that the appeal lodged by the chairman of the investigatory chamber, Michael J. Garcia, against the statement of the chairman of the adjudicatory chamber of the independent Ethics Committee, Hans-Joachim Eckert, is not admissible“, the people want to know what actually was found. So, in all this, with this much money involved the three top dogs: Larry Mussenden, Hans-Joachim Eckert and Sepp Blatter. They are all in awe and shock that there was corruption? I mentioned it yesterday Andrew Jennings with ‘The Beautiful Bung: Corruption and the World Cup’, consider that this was 2006, we get two parts “A few days later we encountered Warner at Trinidad’s international airport and tried again to ask him about his ticket rackets and the fact that he steers lucrative FIFA contracts to his two sons Daryll and Daryan. After the World Cup Andrew obtained two confidential Ernst & Young reports from FIFA sources revealing that Warner had illicitly obtained 5,400 ticket for Germany and sold them to package tour companies in Japan, Mexico and Britain” as well as “FIFA vice president Jack Warner makes threatening gestures to Andrew’s cameraman“. Now we see that the sons have been arrested, Jack Warner proclaims his innocence and now we see reports that in the statements from the sons that their father is mentioned as being involved.

I think that Mr Blatter needs to take a long hard look at his own indignation and consider what he will do next, because his legacy has been burned down, it happened on his watch. In my view he has no one to blame but himself. Not because this unfolds now, but because there has been a decade of clear indications that things were amiss and no corrective steps had been made (as far as I can tell).

So when we see the Guardian part where we see the Defence of Blatter, which is shown at “But Blatter also appeared to discount his own responsibility for the scandal. “We can’t constantly supervise everyone in football,” he insisted. “You can’t just ask people to behave ethically just like that.”“, is that so? So, when we see the events from 2006 onwards, what did you do Mr Blatter?

Now, before people start overreacting, or trivialising on how large FIFA is, let’s not forget that amongst the arrested people were Jeffrey Webb and Eugenio Figueredo, both Vice Presidents of FIFA, so the list takes us to one step from the very top, which gives additional weight to both the inactions from Sep Blatter as well as the overturned appeal from Michael Garcia. Not to mention the fear they NOW have as they are fighting extradition, it does not matter what rank you have in FIFA, once you are a member of the State Penal League, those ‘rich’ boys will end up becoming somebodies bitch, how will that feel?

A side fact to mention is that I talked to dozens of people today regarding the FIFA corruption, not one person, I say again, not one person was surprised. So Mr Blatter, how truly undignified can you be, when there is almost a decade of presented evidence, as well as the press coverage over the years. It seems that in my humble view, Mr. Blatter should currently be presented with an Oscar for best theatrics, 2015!

Now let’s take a look at the part that matters, not just the press, not the ‘opinions’ from people (or from me for that matter), let’s look at the allegations in the indictment.

The enterprise is set as FIFA. It only has a written Code of Ethics in October 2004, revised in 2006 and 2009, it states that ‘that soccer officials were prohibited from accepting bribes or cash gifts and from otherwise abusing their positions for personal gain‘. On page 32 we see: ‘The Initial Corruption of the Enterprise’, here we see “WARNER worked closely thereafter with Co-Conspirator #1, whose fortunes rose with WARNER’s and who was appointed to be WARNER’s general secretary at CONCACAF. Following his appointment, Co-Conspirator #1 transferred CONCACAF’s administrative headquarters to New York, New York. WARNER established the president’s office in his home country of Trinidad and Tobago“, in addition we see “the defendant JACK WARNER established and controlled numerous bank accounts and corporate entities in which he mingled his personal assets and those of CONCACAF, CFU, and TTFF. Beginning in the early 1990s, WARNER, often with the assistance of Co-Conspirator #1, began to leverage his influence and exploit his official positions for personal gain. Among other things, WARNER began to solicit and accept bribes in connection with his official duties, including the selection of the host nation for the World Cups held in 1998 and 2010, which he participated in as a member of the FIFA executive committee“. Even though we can all understand that these people are making a nice amount of coinage. The growth in real estate by ‘family members‘ should have spurted questions on a few levels. the fact that the indictment states “with money drawn from an account held in the name of a soccer facility that was ostensibly affiliated with CONCACAF and was supported in part through FAP funds” gives voice to additional questions on how the books were kept, who was keeping the books and how can a FIFA president remain ignorant of these situations as they are now being documented?

I keep on going back to the work of Andrew Jennings ‘The Beautiful Bung: Corruption and the World Cup’. You see, Jennings is an investigative reporter, he worked for the Sunday Times and BBC Radio 4. He is not some glossy wannabe on the Telegraph or on any Murdoch shouting-wannabe-outrageous press view. This man did a decent job, looked at the issues and this all is reasonably nothing compared to ‘FIFA’s Dirty Secrets’ (November 2010). These are several clear-cut allegations that should have been points of action into investigation and adaption of rules and regulations within FIFA, yet all indications are that nothing was done, which makes the position of Sep Blatter a lot more worrying. Now we get to the one defence Blatter gave that does make sense “At the end of my term I will be able to hand over a strong FIFA – one that is integrated and will have enough safeguards to not need political interventions” (at http://www.bbc.com/news/world-europe-32925227). In my view, the only way to do this is to be open and strict investigative. So, that did not include, or should it have allowed for the statement “the way US authorities targeted football’s world body and slammed what he called a “hate” campaign by Europe’s football leaders“.

In my view Sep Blatter is off to a negatively rocky start.

Additional evidence for questions on how finances are managed. Even FIFA.com is massively unclear on all of it. It that not strange for a multi-billion dollar industry? The fact that there is one president and then there are committee members, no clear CFO, of head of Finances, at least not clearly stated on their website. That does not raise any questions? Something this widespread should have a clear list of names and functions, especially financial ones. So when you see the Governance part of FIFA and we see “According to article 69, paragraph 2 of the FIFA Statutes, FIFA’s revenue and expenditure “shall be managed so that they balance out over the financial period”. Furthermore, “FIFA’s major duties in the future shall be guaranteed through the creation of reserves”“, when we see that line and we should all wonder on how some of these operations are in play. Consider the representation (at http://www.martingrandjean.ch/data-visualization-the-fifa-budget-2015-2018/), I cannot attest to the accuracy of it all, but it shows something interesting. With 5 billion coming in and when we look at the massive amounts of projects in funds going out, whilst leaving 100 million in profit, now consider posts like ‘competitive management‘, ‘Football governance‘, ‘Human resources‘ so many involved projects, linked people and other elements, can we now see that Sep Blatter should have acted in many regards a lot sooner, especially when we see the allegations thrown at the members of governance of FIFA?

This graph might be debatable for the amounts, but what is clearly shown are the amount of venues linked in all this and I feel decently certain, that considering where the 500,000 dollar from the Football Federation Australia went. If that went to ‘a stadium upgrade in Trinidad and Tobago’, if so, where is the accounting? Apart from the payment calling in to all kinds of questions, there are logistic issues. Something this big, this complex requires accountants and oversight. Can anyone explain why we see a second Tesco evolve? If you think that this is an exaggeration, then consider the data visualisation and all those projects costing millions, some totalling hundreds of millions out of a cash flow of 5 billion. You still think I am exaggerating?

When you look at these ‘facts’, I state facts loosely, because the source and quality of the data visualisation cannot be validated/verified (even though the source ‘FIFA Financial Report 2013’ is mentioned). But overall it shows several paths and many of them are known entities, so when we ignore the amount except for the two elements adding to 5 billion, which are publicly known. Can you even imagine how weird and unacceptable the ignorance of Sep Blatter is, how totally out of place of is for a president of an organisation the size of FIFA?

I let you decide, but consider the stories we see, the information we are not seeing and how the FBI was the one acting at present. In addition, as I requoted the 500,000, which was according to sources for a ‘stadium upgrade in 2010’. The information I found was that it was to upgrade the Marvin Lee Stadium. In 2007, the Stadium became the first in the Caribbean to have an artificial playing surface, costing TT$8 million, which was made possible through a FIFA development grant. This comes to AU$ 1.6 million, or £824,000. So where did the 2.4 million TT$ go to in 2010? And why did a stadium needed that much for an upgrade? Interesting on http://stadiumdb.com/stadiums/tri/marvin_lee_stadium is the fact that we see there that renovations were made in 2007, there is no mention of the 2010 upgrade as was stated. I am certain that some upgrades were made, but for how much? In addition we see all the artificial turf, but who costs it and is it competitively costed (especially when it sets someone 1.6 million back)? I do not know the answer, I am asking, I wonder who else if any are asking these questions in plight of the corruption allegations as well as the arrests made.

There is one final part. It puzzles me, hence I mention it. Especially in light of what is now visibly passing. The indictment, criminal counts three and four involve two wire transfers totalling 13 million in name of CONMEBOL at Banco do Brasil in Asunción, Paraguay. In light of the financial hardship Paraguay has had, with the crises of 1995, reforms demanded by the IMF due to corruption, with the banks having a long time history of laundering. Why would FIFA act in such a naive way? It is a fact that the HQ of CONMEBOL is in Paraguay, so there is a valid reason for the transfer, In 2013 Chile had one of the 50 safest banks, and Paraguay does not get mentioned on that list at all. Even if we accept the validity of the bank transfer (which seems to be the case), but what happened to the money after that? You see, that becomes the question. In addition, we see that apart from the Australian ‘donation’ counts 10 and 11 where additional donations went to the CFU Trinidad. Again, it seems valid, but what happened after that? The indictment is now 11 days old. Any quality CFO could have gone public stating where the money had gone to, in effect blowing the entire indictment out of the water. The fact that we see that certain FIFA members are fighting the extradition, in addition to the fact that conference and election or not, clarity on several points could have been able to give (read: should) in matters of hours give added question to what is going on.

My issue is not the ‘what next’ part, it is the ‘what did they not yet find’ part.

You see the indictments are on the transfers and payments, in the first degree. we see over time that CFU got two payments of a little over half a million, which should not be a blip on a 5 billion dollar radar, but for the indictment, it is, so what information is not shown at present (the trial will bring that out)? You see, are counts 10 and 11 a clear indication that they have certain evidence, or are these counts the crowbar to open up other issues, issues that could come up in ‘operational expenses and services‘ which the data visualisation sets at 990 million. I reckon that true digging into ‘building and maintenance’, ‘human resources’, ‘other’ and one element not even named could be the field where the FBI knows the issues are, the question now, does FIFA have a correct and precise account, if not, why not? If so then the comparison will leave a few highlighted fish, which will put Jeffrey Web in an uncertain location. The CFU will get into other waters as well as this is all British terrain (artificially grassed or not), the Serious Fraud Office (SFO) will soon get additional work, because they will now have their own investigation as well and as I see it, it will go a lot further than just a few banks.

FIFA might be all about the ball, but it seems that Sep Blatter has not been on it, not for a while now.

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May 29, 2015 · 23:09

Condoning corruption!

There is no escaping the news, FIFA is currently getting smeared all over the place, but before we start painting the roses red, the question we must ask is who are we trying to appease?

Our own sense of morality perhaps?

My first writing on all this started on March 19^th 2014 in ‘Any sport implies corruption!‘ (at https://lawlordtobe.com/2014/03/19/any-sport-implies-corruption/), There I looked at the first allegations against Qatar. The evidence presented was highly debatable. It took me to a response Lord Denning gave in the trial Miller v. Minister of Pensions [1947] 2 All ER 372. The statement was “more probable than not”. In the end, I had reservations on whether Qatar was guilty of bribes. I finalised my view with “it is more likely than not that three people were falsely set in an illegal light so that several unnamed persons could walk away with many hundreds of millions of Euros“. My view was apparently a lot more optimistic!

Now we get to the news of the last few days.

On May 27^th FIFA officials get arrested on corruption charges. (06:00)
On May 27^th Criminal investigation into 2018 and 2022 World Cup awards opened (09:30)
On May 27^th FIFA presidential election to go ahead, no 2018 and 2022 World Cup revotes (10:30) (source: http://www.espnfc.com.au/)

At 14:30 4 members, Chuck Blazer, Jose Hawilla, Daryan Warner and Daryll Warner plead guilty. So, even as daddy Warner proclaims his innocence, it seems that he was able to instil values of corruption in his boys. However just now in the Wall Street Journal (at http://www.wsj.com/articles/three-men-with-ties-to-former-fifa-official-aided-probe-1432859617) gives us the quote “businessmen who have been involved in ventures…including ventures involving their father”, which gives way to daddy Warner being in water a lot warmer than he might find comfortable. But in all this, the disturbing part is not the fact that FIFA seems to be corrupt through and through, it is odd in my view that this has been going on under the watchful eye of police forces all over Europe, as well as Interpol. These events were all brought to light by the Federal Bureau of Investigation (of FBI for short). Is that not puzzling? I was not the only one thinking this. A similar thought came from Chris Bryant MP (at http://www.bbc.com/news/blogs-the-papers-32925653)

When we consider certain facts.

From USA Today we get “Blazer was a member of the FIFA Executive Committee from 1996 to 2013, when he was replaced by Sunil Gulati. That same year Blazer was accused of taking over $15 million in payments from FIFA over the course of his tenure and was suspended“, so now suddenly he is regarded as a ‘Report: Former FIFA executive-turned-informant‘ and he had a $6000 apartment for his cats! So, basically he had a pussy place for that cash? Yet the part that is linked here is “CONCACAF’s offices took up the entire 17th floor, but Blazer often worked from two apartments where he lived on the 49th floor“. It seems to me that there is a lot more going on here. Is it perhaps (mere speculation) that certain meetings were to be taken in a deniable setting? More important, I get it that the FBI caught on, but why did the Police forces all over Europe remain blind to all this? In addition, this also brings the entire Michael Garcia debacle again into focus. The fact that this level of corruption had been going on, and as far as we can tell, it happened under the nose of Michael Garcia. When we consider he had been digging into the entire corruption issues for both 2018 and 2022, it seems odd that no flags were raised when we consider the lavish lifestyle of some members. The fact that his appeal to publish the entire document he worked on was overthrown, now these people will get to explain a lot as the corruption scandal spins out of control and anyone now trying to withhold information could end up painted black by the ‘corruption brush’!

It is Attorney General Loretta Lynch who says it best: “It spans at least two generations of soccer officials who, as alleged, have abused their positions of trust to acquire millions of dollars in bribes and kickbacks”, so over two generations, decades in activities and the President Sep Blatter remains blind to it all? I am not stating whether he was involved, that is up to the FBI and they did not find anything, the fact that he should have been aware something was wrong is ample evidence that Sep Blatter is nowhere near fit to preside over FIFA. Not when something like this goes on for decades under his presidency.

If we accept the view from the Guardian (at http://www.theguardian.com/commentisfree/2015/may/28/fifa-expose-british-press-andrew-jennings-sunday-times-corruption-fa), where we see: “Andrew Jennings, 71, who has traced Sepp Blatter’s footsteps for more than a decade. Jennings worked for the Sunday Times and BBC’s Panorama. His BBC film about FIFA corruption, The Beautiful Bung, appeared as long ago as 2006“, so as we consider these facts and the fact that this happened, for a large extent under the eyes of Sep Blatter, as we see that he had made no moves since the 2006 film, which should have been an eye opener for him, Scotland Yard and Interpol, but it was the FBI in 2015 who got it done!

Is there no blame? With this level of negligence? I hardly think that is the case and as I see the presidency of Sep Blatter should be cut immediately. In addition, if FIFA wants to regain any level of credibility, it has in my view, no other option but to publish the full report by Michael Garcia. You see, what is in there will be revealing, but I feel certain that what is not in there might be worth even more. Because all this happened, because certain steps were not done and even the tail coat of Michael Garcia is very likely to get smudged. Now let me be clear, I do not believe that Michael Garcia did anything wrong, yet as he started his role in July 2012, he must have had a few thoughts on how he can remain so isolated from the entire pack, as it was devouring the better part of 150 million. Red flags should have been raised in the corner of his eyes, but that might be just me speculating!

The other part hit me when I read the article “Chuck Blazer: FIFA ‘supergrass’” (at http://www.bbc.com/news/32913599), when we consider the quote “it was at this time that Blazer signed a contract with Concacaf that entitled him to 10% commissions on all sponsorship and TV rights deals through his company Sportvertising, giving rise to his nickname of ‘Mr Ten Percent’“, so he gets 10% and still he gets on the Trans Corruption Express? In 2011 he gets the option to become the inside man, the informer. It seems to me that this person has been given a way to lavish life, with 2 repayments. The first one of 1.9 million and another one still to come. I reckon his attorney will use the ‘colon cancer card’ for maximum effect.

I reckon, the FBI did in light of the inaction by so many others, a great job!

The question on everyone’s mind will be regarding the future of FIFA, because without a complete overhaul and without a complete rewriting of the rules, there is every chance that FIFA might not be tolerated any further. There is one more matter, which was set at http://www.theguardian.com/football/2015/may/28/australian-police-asked-to-investigate-500000-payment-to-fifas-jack-warner. Here we see ‘Australian police asked to investigate $500,000 payment to FIFA’s Jack Warner‘. So this is another ball game. My question is in the first degree, what was the payment for? Was there a receipt? The Sydney Morning Herald had an interesting part: “The $500,000 payment by the FFA to a football association bank account controlled by Warner – a payment ostensibly made to redevelop a stadium in Trinidad and Tobago“, so why was the Football Federation Australia paying to redevelop a stadium there? The second quote “The FFA on Thursday defended its failure to report the matter to Australian or US police on the basis that FIFA – the organisation now at the centre of an international corruption storm – asked them not to” is even further troubling. Basically, FIFA officials seem to get away with it, the moment the word ‘FIFA’ and ‘request’ are mentioned together, the simple application of Common Sense went straight out of the window.

Even though there will be no resetting of 2018 and 2022, issues still need to be addressed. There is now an additional side to all this. Editors seem to forget at times what they do, but let me remind you regarding the article I wrote on November 14^th 2014 called ‘Sacking the editor?‘, in there Martin Ivens is quoted by Reuters: “Britain’s Sunday Times newspaper reported that some of the “millions of documents” it had seen linked payments by former FIFA executive committee member Mohamed Bin Hammam to officials to win backing for Qatar’s World Cup bid”, is that not interesting? So, did the police act on any of that? Is it perhaps possible that the allegations from a newspaper actually hindered a criminal investigation? It is hard to say as the direct facts are murky (and my view on UK Criminal law is murky too), but it all gives way to a hidden stream of events under the FIFA tsunami that is now hitting the press. Has the press shouted ‘wolf’ so often that certain officials stopped acting? That is the direct question here, because the indignation that Chris Bryant MP voiced (Labour) is very real. Why did the FBI solve that what should have been squarely in the corner of Scotland Yard and Interpol. Andrew Jennings is only one of many sources that seem to have been ignored by many people and players on numerous levels.

So, are we condoning corruption? Before you say ‘no’ consider how long this issue was unattended and the fact that the FIFA president, who remained oblivious to the entire matter is at this point likely to be re-elected calls for even more questions. The last part was released half an hour ago. We must give option to refer to the Serious Fraud Office with some laughter as it is now assessing the ‘materials’ which give voice to the fact that Barclays, HSBC and Standard Chartered Bank were used to transfer cash. Didn’t we see two of those banks in other ‘issues’ involving cash?

Is anyone else finally waking up?

The Original Indictment: fifa-indictment-webb-etal

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Tagged as Andrew Jennings, Attorney General Loretta Lynch, Barclays, BBC, Chris Bryant MP, Chuck Blazer, Concacaf, corruption, Daryan Warner, Daryll Warner, ESPN, ESPNFC, FBI, FFA, FIFA, FIFA Executive Committee, FIFA president, Football Federation Australia, HSBC, international corruption, Interpol, Jack Warner, Jose Hawilla, Lord Denning, Martin Ivens, Michael Garcia, Miller v. Minister of Pensions, Miller v. Minister of Pensions [1947] 2 All ER 372, Mohamed Bin Hammam, President Sep Blatter, Qatar, reuters, Russia, Scotland Yard, Sep Blatter, Standard Chartered Bank, Sunil Gulati, Sydney Morning Herald, The Beautiful Bung, the Guardian, Wall Street Journal

May 26, 2015 · 23:46

An Olympic steeplechase

Greece is at it again (or still might be a better word)! Let’s turn back the clock a mere month! On April 28^th we get the following news (via several sources): “Greece has decided to pull Finance Minister Yanis Varoufakis back from bailout negotiations, a move it describes as ‘clipping Varoufakis’ wings’ and ‘reining him in’ after three months of debt talks failed to produce an agreement”.

That move made perfect sense, several people (including me) saw him in some rock star presentation which was good for his ego and not too good for the Greek people. Of course, reining in does not mean ‘keeping him quiet‘, which I would not do (for the shear entertainment value alone), but also because he is the selected spokesperson of the Greek economy. So when we see the news in the Guardian a few hours ago stating: “Greek bond weaken after Varoufakis blames creditors“, my first thought was ‘can’t the man shut up?’

The quote given is “The problem is simple: Greece’s creditors insist on even greater austerity for this year and beyond – an approach that would impede recovery, obstruct growth, worsen the debt-deflationary cycle, and, in the end, erode Greeks’ willingness and ability to see through the reform agenda that the country so desperately needs. Our government cannot – and will not – accept a cure that has proven itself over five long years to be worse than the disease”

In my own view I state that he squandered 95% of the time he had with posturing, he forfeited the game buy thinking that Greece is too big to be ‘Grexitted’. Guess what Yanis! The Dutch SNS bank thought that very same notion! It did not pan out too well for them either!

Now we get the second quote, this one from Dimitris Stratoulis. He states “If we decide that there is no money left for the IMF, we have repeatedly said that our priority is to pay salaries, pensions, health, and education”. To be honest, I cannot completely oppose that! Although my priority should state Pension, Salary and Health, with a question mark to what salaries are to be paid, but I understand that the people should normally go first. I do not oppose this! Yet Syriza has been playing what I regard to be a pissing contest with people who did not need to play that game and had no interesting in playing that game. There is additional evidence. Perhaps you remember the case of Leonidas Bobolas, who got arrested in April 2015 for 1.2 million in tax evasion? That short term theatrical play just as the ‘negotiations’ were going on. I reported it in my blog on April 27^th in the article ‘Finding inspiration‘ (at https://lawlordtobe.com/2015/04/27/finding-inspiration/).

How many arrests since then?

The news is awfully quiet around it. There has also been zero visibility on praising Kostas Vaxevanis on his findings and his reports. It seems to me that the members of Syriza have absolutely no intent of doing anything constructive at all towards their creditors. So when we see the statements “Greek finance minister Yanis Varoufakis has apparently pledged that Greece will meet its €305m repayment to the International Monetary Fund” by Yanis Varoufakis as well as “Tsipras instructed officials to act speedily as his government sought to defuse tensions saying it would do its best to honour its debts – even if it failed to reveal how, exactly, it would find the money to pay €1.6bn in loans to the International Monetary Fund next month” (Helena Smith, the Guardian).

Yet these two parts are already ignoring the 750 million pushed forward because the invoice of May 12^th was not ‘paid’! It was settled using the IMF emergency funds, which means that this money is also due. In addition on May 12^th, 16^th and 19^th are the amounts of 348, 581 and 348 million due. That is just the IMF, the maturing bonds as well as the ECB have not been taking into account in this matter. In addition, more bailouts are already known to be needed, so as Varoufakis is boasting, threatening and claiming, I notice that many are ignoring the observation some made “the creditors’ insistence on even more austerity, even at the expense of the reform agenda that our government is eager to pursue“. This is at the heart of the matter, because Greece is facing a 22 billion annual interest invoice, which it has no way of paying. A fact many are simply ignoring. So as non-actual payment of three quarters of a billion were made, we must wonder where that comes from. Let’s not forget that on June 12^th 3.6 billion in T-bills mature!

Another non-reality comes from that same Guardian when we see: “Traders are also blaming Klaus Regling, the head of the European Stability Mechanism, for today’s euro selloff“, which is specified in “There is little time left… That’s why we’re working day and night for an agreement. Without an agreement with the creditors, Greece will not get any new loans. Then there’s a threat of insolvency. There are a lot of risks contained in that”, which is a reality I have pleaded for, for some time now. The funny part is that the New Democracy HAD it for the most sorted and the Greek people were suffering, no one denies that! Yet the courts have not made any attempt to hold previous administrations accountable, the tax evasion schemes had one trial so far and 1.2 million does not go far.

There is one final part that is an additional danger. It is not reported on, because in all honesty, the actual danger is not known yet. But did you consider how tourism will do this year? How many thousands of tourists will consider avoiding Greece (the Germans being a first nation that comes to mind)? You see, no matter how we regard the Germans, they for the most had jobs, had incomes and will desire a warm vacation. The Greek approach will work out nicely for Spain, Portugal and Italy I reckon, but with the acts of alienation Greece is cutting itself in the fingers. In addition, the dangers of drying ‘wells’, like the fear of empty ATM’s and other means not operational give added fear to the tourist population. Even though Crete should remain reasonably safe, the reality is that no part of Greece might be safe if clear progress is not booked within 2 weeks. I do hope that it will not pan out to be too bad for Crete, Stavros Arnaoutakis has been an active fighter for the prosperity of Crete for a long time and it was his birthday yesterday, so: “Happy belated birthday Stavros!” He was born in Archanes, due South of Iraklion. You might wonder why I bring this up. I will repeat the issue I voiced well over a year ago. It is becoming more and more visible that the power of Crete might reside in its independence. Crete has a founded tourist base, it has a functioning harbour for commerce and functioning airports for commercial ends too. This independence would not break their Union with Greece, but unlike the independence of Scotland, Greece has a much better chance to setup its independence at present, without too many nasty negative sides. Whatever options Syriza is currently destroying, Crete could set up a working base of minimal credit and continue for now. It will be hard, no one will deny that, but if Crete can sway a few services towards the Cretan island, it would for the better part be decently self-reliant.

This is a much better position than the position Greece had in the past, which team Tsipras/Varoufakis efficiently destroyed as I personally see it.

I also believe that the dedication Stavros Arnaoutakis has shown for a strong Crete could go a long way with whatever creditor conversation might be needed. As Crete moves straight into the Drachma, which would then be called the Cretan Drachma, would start to build on a future for both social enhancements (within Crete) as well as built on the decent foundations that Cretan housing has as well as a shift towards a services oriented future. Consider the mild climate Crete offers with water views all around that island, how long until 2-3 retirement villages would rake in jobs, commerce and income from retirees who would like their last few years in decent sunshine?

It is not enough to warrant full independence, but it is a start, if only to make the reliance on tourism 10%-20% smaller. Consider call centres that could work in that time zone and the better weather conditions. Before too long, students from all over Europe will seek a call centre all day and party all night vacation. I admit it is not the business call that matters here, but good commerce is where you built it!

Now, this might not be a great idea (perhaps not even a good idea), but I am trying to find a solution! I hope that there will be options for the Greek people, because Syriza is quickly and as I see it possibly intentional discarding whatever solution is left for the Greek people. If you doubt this, then consider the following facts:

* Less than an hour ago, I see in the Guardian, the following release: “Mujtaba Rahman, analyst at Eurasia Group, reckons that Greece will probably reach a deal with the Eurozone in time” (I am not convinced), in addition we see “We continue to believe Tsipras will lose around 5-10 lawmakers from his coalition when the package is presented to parliament (potentially attached to a vote of confidence). But we suspect he will lose less than 12 MP’s allowing him to keep his parliamentary majority“. As I see it, this should be about protecting the Greek people, now we see the cold reality (not an invalid one) that this seems to be more about playing with votes and keeping a ‘parliamentary majority‘!

This is why I felt that Antonis Samaras was the better option. He was trying to find solutions, not be ‘the popular guy’! You think Antonis Samaras was making friends when he was in office? No! He inherited a 400 billion invoice (very rough estimate) with no way to pay for it. With floating the credit ceiling and pushing non actions, Tsipras in his short time (with of course support by Varoufakis) has added close to 20% to that total debt. Now, in all honesty, he did not cause that 20% directly, but by sitting on his hands and playing theatrics he has not helped resolve any of it.

But we must also adhere to reality. The following we get from Bloomberg if Greece misses a payment: “A missed payment date starts the clock ticking. Two weeks after the initial due date and a cable from Washington urging immediate payment, the fund sends another cable stressing the “seriousness of the failure to meet obligations” and again urges prompt settlement. Two weeks after that, the managing director informs the Executive Board that an obligation is overdue. For Greece, that’s when the serious consequences kick in. These are known as cross-default and cross-acceleration“. This is a true reality, yet is that per payment?

Consider that this happen on June 5^th and we get to June 19^th? At that point two T-bills will have matured for the total amount of 5.2 billion, the second one of 1.6 billion on the 19^th itself. When the 5^th is missed, what will the markets do then? In addition, on June 19^th a total of 910 million will be due too (16^th and 19^th of June IMF payments). In addition, what will happen to the interest levels when the two week term passes?

No one denies that the payment pressure is too unreal, but the Greek government themselves was cause to all of this (not Syriza)! That is at the heart of the ignored facts (read: unmentioned). These facts are exactly why Crete should consider protecting the Cretan population if at all possible. In addition, the separation could give additional credit to the Greeks on Crete and it might (not a guarantee) instil a lesser negative impact on tourism, which would be a massive plus. A few extra options could be set up there, but that would be up to Stavros Arnaoutakis and his peers to decide.

So how will we see this steeplechase unfold?

The ‘die hard’ positive proclaimers are singing the same song again and again, the doomsayers are hammering on what cannot be and both are interestingly avoiding key issues. Whether they feel repetitive on them is beside the point. I try to remain on the fence (which is hard with Syriza), yet I do try to find solutions. Will they be useful? Not for me to decide, but at least as a non-Greek, I might be one of the few trying to find a non-exploitative solution, which puts me ethically, morally and spiritually ahead of the pack.

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Tagged as Alexis Tsipras, Antonis Samaras, Archanes, bloomberg, Crete, Dimitris Stratoulis, ECB, Eurasia Group, European Stability Mechanism, Finding inspiration, Germany, IMF, Iraklion, Italy, Klaus Regling, Kostas Vaxevanis, Leonidas Bobolas, Minister Yanis Varoufakis, Mujtaba Rahman, New Democracy, Portugal, Scotland, Spain, Stavros Arnaoutakis, SYRIZA, the Guardian, Varoufakis, Yanis Varoufakis

May 25, 2015 · 00:03

Dark side of the moon

The Guardian ended up with an interesting article on Friday. The title ‘Malware is not only about viruses – companies preinstall it all the time‘ (at http://www.theguardian.com/technology/2015/may/22/malware-viruses-companies-preinstall), it is a good article and Richard Stallman is a great man, but there are parts in this article that I have an issue with. Mind you, the man is not telling stories or lying, but he is showing one side of the coin. He is also reinforcing other sides to the software industry that are a definite issue.

The first part is a part I am completely in agreement with “In 1983, the software field had become dominated by proprietary (i.e. non-free) programs, and users were forbidden to change or redistribute them“, a side which I do not oppose. In addition there is “But proprietary developers in the 1980s still had some ethical standards: they sincerely tried to make programs serve their users, even while denying users control over how they would be served“, I have a partial issue with the last bit ‘denying users control over how they would be served‘. I disagree for two reasons.

The first is based on resources. In those days, an IBM PC was a massive behemoth, it had 256Kb memory and if you were really really rich, you also had a 10Mb hard drive. So, yes, the expensive personal computer had less resources then the cheapest $39 Non-smart Nokia phone. Go figure! By the way, that 10Mb hard drive was priced at $1499 in those days. So, user control was an issue, because resources did not allow for them, but soon thereafter, the 512Kb PC was released and there was so much we could do then! No sarcasm here, it was true! In those days I learned and mastered Lotus Symphony an excellent program! This was also a time when we started to get some choices in control, control remained limited, but some control was gained.

Next we see the first part that is an issue, even though he makes a nice point on End User License Agreements. I would like to add the Terms of service as a clear point here, but overall there is a part that is too coloured. The quote “So many cases of proprietary malware have been reported, that we must consider any proprietary program suspect and dangerous. In the 21st century, proprietary software is computing for suckers“.

I cannot completely disagree that Microsoft soured the market by a lot, it has done so in several directions, yet Corporate Earth is at times too stupid to consider growing a brain, which is also part of the problem. It is an element that is shown all over the place. The Netherlands, Sweden, UK, France, Germany, Denmark and even Australia (I worked in all those countries). Instead of sitting down and considering a switch to LINUX with open office, the IT and other elements are just too lazy and too under resourced to push for a change, so the users are no longer people, they are for the most mere meek sheep following the ‘corporate standard‘, which means that they too use windows and Office.

Another direction is the hardware world. Windows comes preinstalled, more important, Windows and Microsoft have been a driving force, forcing people to buy stronger and more expensive computers. Even though many users have not needed any need for more powerful and stronger hardware, Windows forced them to upgrade again and again. Anyone not into gaming and using their computer merely for office activities and browsing mail on the internet should not have needed to upgrade their computer for the better part of 10 years, but that is not the reality, go to any computer shop for windows hardware and we see how the ‘old’ ASUS, ACER, Lenovo, HP or Toshiba no longer hacks it. Which is actually weird, because if you reinstall your old laptop with LINUX and Apache Open Office there is a high chance that you will work in 90% of the time just as fast as with that new $2000 laptop on Windows 7. Setback? You have to install and configure it yourself. Upside? LINUX and Open Office are both free software, no costs and no fees!

Is it not interesting how companies are not jumping on that free horse? Why is that you think? In addition, with all the needs for government costs to go down, why are they not more pro-active to push for a shift towards LINUX? Is it security? This is also odd, because with the massive amount of non-stop security patches, Windows is not that secure to begin with.

So where do I disagree? Well the first clear quote is “Some are designed to shackle users, such as Digital Rights Management (DRM)“, I believe that if a firm makes software, it has every right to prevent illegal use, for a long time, how many people do you know that have a LEGAL version of Adobe? Even when the stars are in your favour. In many Universities, Adobe offers the entire master collection (all their software) for $400, which is an amazing deal! I got my legal versions of both Windows 7 and Microsoft Office Ultimate for an additional $199. Why not buy it? No many just find a download place and get the software for free, in addition you can get the codes. It goes even further that I stumbled on a place in Germany some years ago where they were offering the OEM stickers for PC complete with license key for 20 Mark. I could not tell the difference from the original sticker in the software box I had bought. Do you think that DRM would have been such a push if people just bought their software? I will take it one step further, I feel certain that if every person was charged $275 a year, we all would have the complete Adobe, Windows and Office programs free to download, with no need to illegally copy anything.

But there is still that other side. You see, I still believe that Microsoft and hardware providers have been forcing a technological armistice race upon the consumers, which now adds up to us all wasting resources on iterative junk we should not need. So even though I do not completely agree with Richard Stallman here, he does have a point.

Now we get to an issue that I actually faced without knowing it “Even Android contains malware in a non-free component: a back door for remote forcible installation or deinstallation of any app“, you see, I thought I was bonkers (which I actually are) but for some reason one of my apps had suddenly be removed and not by me. It was not something I needed. I had just downloaded it from Google play out of curiosity, but suddenly it was gone! In addition, on more than one occasion it just decided to update my apps, without my permission. When you have bandwidth issues, seeing a force upgrade which could cost you is not that nice a moment.

Yet, for the most, I remain a loyal fan towards Android, even though at times programs use background resources for reasons unknown, or are they unknown?

We get the next part from the quote “Even humble flashlight apps for phones were found to be reporting data to companies. A recent study found that QR code scanner apps also snoop“, there is a lot more at http://www.facstaff.bucknell.edu/ejsmith/scan.this.or.scan.me.2015.pdf; now we have ourselves a massive issue, although the paper shows that there is a prompt for GPS and the sending of GPS, none of them has the situation where they do not prompt for GPS and still send it. Eric Smith and Dr Nina A. Kollars who wrote the paper give us another consideration on page 8. There we see “Moreover, contemporary privacy norms are increasingly threatened as what initially appears to be signals of consumer preference slide further into determining bigger-picture life patterns and behavior. The term most commonly used to address this creeping phenomenon is the literature on consumer panopticism“, which now refers to ‘Gandy, Oscar H. The Panoptic Sort: A Political Economy of Personal Information‘. Before getting the book (which is worth the purchase), you might want to take a look at a paper by Adam Arvidsson, from the Department of Film and Media Studies, University of Copenhagen, Denmark (at http://www.surveillance-and-society.org/articles1(4)/prehistory.pdf), you see, my partial issue with the article by Richard Stallman becomes slowly visible now. He is right in his view and his vision as he sees this, but you the user did this to yourself! You think that Facebook is ‘free’, that these apps are there merely for amusement (some actually are), their goal is income! Some work the Freemium game market, where games like ‘Book of Heroes‘ gives you a free game, but if you want to grow faster and better in the game, you will have to invest. For the most, these games will rely on the investment from $10-$25 to truly open up, which is, if you consider the amount of hours played still great value. Freemium games also come with that ‘try before you buy’ approach, as you can play the game, but to enjoy it, to get more moves and more joy a few dollars will be essential. The other part that relies on ‘captured data’ did they inform you? If not, there is an issue, but the app programmer will get his pound of flesh, either by cash of by data!

Yet the other side is also true, you see, as Richard mentions and as Adam Arvidsson report on, there are places like Red Sheriff, that rely on hidden script, which is more advanced/intrusive as it keeps track of ALL your online movements. You get this script as a ‘present’ when you visit one of its affiliated sites. Did you the internet user sign up for that? When we see the reference on who pushes this. We see “since most major commercial sites use Redsheriff“, which means that nearly all will somehow be tracked. I for one do not really care that much, but I never signed up for any of it, so should we see this as an invasion to our privacy?

This is where we see that freeware is almost never free.

Yet Richard also alerts us to another state of freedom, or lack thereof! In the quote “If the car itself does not report everywhere you drive, an insurance company may charge you extra to go without a separate tracker“. Can anyone explain to me why it is ANY business of the insurer where we are?

In the end, Richard states three parts, which are fair enough, but overall the issue is missed. The issues reported are:

“Individually, by rejecting proprietary software and web services that snoop or track“, here I do not completely agree! I used Adobe as an example for a reason, there is simply no viable alternative, it only became worse when Macromedia bought Adobe (I know it is the other way round, but I will remain a faithful Macromedia fan until the day I die!), there is in addition, no tracking done by Adobe, other than keeping track whether you have a valid license, which I never opposed.

“Collectively, by organising to develop free/libre replacement systems and web services that don’t track who uses them“, which I whole heartedly agree with, I am even willing to devote time to this worthy cause (not sure how I could ever size up to the hundreds of Richard Stallman’s, but I am willing to give it a go!

And last there is “Democratically, by legislation to criminalise various sorts of malware practices. This presupposes democracy, and democracy requires defeating treaties such as the TPP and TTIP that give companies the power to suppress democracy“, this is the big one. The political branches all over Europe and the Commonwealth have sold us short and have not done anything to properly enforce the rights to privacy. In addition, Google and Apple remains in a state of non-clarity on what data these apps capture and what they convey. In that regard Facebook is equally guilty. Facebook goes further that it does not even proper police those who claim to give a free app, only to no longer work, but when you went to the install the data is as I see it already captured by the app provider, which gives wonder to where that data went.

In regards to suppressing democracy, which is perhaps partially overstated, there is an issue with the TPP that seems to empower large corporations and nullify the protection to smaller innovators and even governments as the TTP wants to enforce “where foreign firms can ‘sue’ states and obtain taxpayer compensation for ‘expected future profits’”, how long until we get an invoice for overinflated ego’s? Especially from those people in the entertainment industry claiming the loss of so many billions in an era when the bulk of the population can hardly pay their rent!

I regard Graham Burke of Village Roadshow to be one of the greater jokes this era has brought forth. Consider who he is supposed to ‘protect’, he goes on regarding “‘crazies’ whose hidden agenda is the ‘theft of movies’“, which is not that far-fetched a statement, because movies will be downloaded and not bought, it happens, yet not to the degree Graham Burke claims it is! So we get him soon enough to claim billions from losses due to the massive download of ‘the LEGO movie’ perhaps? Yet in the public forum on copyright infringement, we did not hear him utter a word on bandwidth, perhaps the response from Telstra’s Jane Van Beelen would likely have been a little too uncomfortable Mr Burke?

You see, in my view it is less about the democracy as Richard Stallman sees it. The legal protection seems to be massively delayed as bandwidth is income, and when piracy is truly stopped bandwidth will simmer down. If we accept the word of Village Roadshow with global revenue of 13 billion since 1997. Yet, I wrote about movie piracy in ‘The real issue here!‘ on June 17^th 2014 (at https://lawlordtobe.com/2014/06/17/the-real-issue-here/), in the calculation, which I kept very conservative, Telstra could lose up to 320 million a month in revenue, due to diminished bandwidth, which gets us 4 billion a year. Consider that Village Roadshow is global, which means that Australian revenue is a mere fraction of that, how soon until they see that Village roadshow might only get 5-10 million a year more, against the 320 million a month loss for Telstra? So Mr. Burke is not regarded as a serious party as I see it (yet he is not an invalid party), Telstra would have too much to lose, not to mention the loss Optus and iiNet could face. However, if the TPP changes that with ‘expected future profits’, whilst there is absolutely no quality data to prove that the loss is nothing more than there ego’s talking.

There is the crunch that politicians are too afraid to touch!

Yet, in light of many factors, legal protection (including protection for Village Roadshow) is essential, yet the large corporations seem to hold the game to the need of their bottom dollar, which is the dollar, not democracy or decent rights. If it were decent rights than telecom companies would properly monitor abuse of digital rights, because the movie is for Village Roadshow to sell, or to stream for a fee via Netflix. I do not deny this at all, I just oppose the outlandish income some of them claim that they ‘lost’!

So on the dark side of the moon we see that (actually we do not see any of that) things are not right. I do not completely adhere to the idealist view that Richard Stallman validly has (we are all entitled to our views), but he touches on several parts that definitely need change and until we see a governmental push away from Microsoft solutions, we will see that the government will spend loads of money on never-ending updates to hardware and software. We all agree that such a change is not easily made, but in light of the cost of living, the fact that nearly no one makes that change is equally worrisome.

When we stare up to the sky we always see the same side of the moon, the dark side is wild, and is covered with impact craters, impacts we never see. It is a lot more reminiscent of the chaotic wild life of malware, a side that is constantly lacking the exposure it should have, mainly because it affects the bottom dollar.

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Tagged as ACER, Adam Arvidsson, Adobe, Android, Apache Open Office, Apple, Asus, Bucknell, Department of Film and Media Studies, Digital Rights Management, Dr Nina A. Kollars, DRM, Eric Smith, google, Graham Burke, HP, iiNet, Jane Van Beelen, Lenovo, LINUX, Macromedia, Microsoft Office Ultimate, Optus, Oscar H Gandi, Redsheriff, Richard Stallman, Telstra, the Guardian, Toshiba, TPP, University of Copenhagen, Village Roadshow, Windows 7

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