Category Archives: Finance

August 1, 2014 · 12:12

Talking the Walk

Yes, today is an interesting day, in a time when we all have a notion of democracy; we must all wonder how much of a democracy is left. You see the freedom of choice and the choice in options means that the freedom given is also an inherent acceptance of accountability? If we make a small sidestep at this point, then I would like to take a step towards the Media Ethics as stated at mediaethicsmagazine.com.

There in the fall of 2008, T.L. Glasser and J.S. Ettema wrote an interesting article called ‘A Philosophy of Accountability for Journalism’, it is a good article to read and well worth reading (at http://www.mediaethicsmagazine.com/index.php/browse-back-issues/135-fall-2008/3639324-a-philosophy-of-accountability-for-journalism).

The initial line, as in any good academic article is right at the beginning, when we read “The problem of ethics in journalism, we want to argue, is not the inability of journalists to know right from wrong but their inability to talk articulately and reflectively about it“. I from the my viewpoint, for the point of view that many has seen as we see the ‘junk’ articles from Murdoch publications hit us is that the point given reads to many of us (roughly 99.32443% of them non-journalists) see the second phrased as “their inability to avoid accountability by speculate on the words of seemingly non-existent sources they will never reveal“.
What we get is gossip, branded as journalism, a speculative piece where no accountability will ever be required. This is for a lot of people at the heart of the need that the Leveson report would address, which is why Journalists in many nations, especially in the UK as a trade that had lost its integrity to many.
This is however not about the article, yet, I am mentioning it as the article is an excellent piece of work and the article actually is to some extent shows the moral compass within all of us. There is however one more quote that I will not go into now, but it has bearing on what comes next “which reminds us that discourse ethics does not involve a marketplace process which aggregates individual interests but a deliberative process which brings into existence common or shared interests“.

This is about today, the first day of a new day of default for Argentina (at http://www.theguardian.com/world/2014/jul/31/argentina-government-defiant-debt-default-axel-kicillof). We seem to have been all about the banks and their evil practices. I know, because I have been one of them. The question becomes, what happens when you accept doing business with a loan shark? I wrote about it in my blog ‘Changing the rules of Democracy‘ on July 27th.

When the IMF wanted to restructure debts in 2003, USA as stated stopped the IMF; I want to know the EXACT reasons why. Perhaps they are valid, perhaps not! I also reflected on the fact that someone went to the Vulture funds and signed a deal. What was that deal exactly and who signed it. You see, Argentina is not blameless here; at some point, there is a knock on the door and at that point, the bailiff will want his coin, which is pretty much what was settled in court.

The Guardian article raises a point through the following quote “Economists at the Washington-based Centre for Economic and Policy Research called on the US Congress to intervene, warning in a letter that Griesa’s decision to uphold the holdout investors claim could cause ‘unnecessary economic damage to the international financial system, as well as to US economic interests’“.

You see, in all fairness, is that acceptable? If a system is brought and evolves devoid of accountability, how can we ever get a better world? I have pressed for accountability on many sides. On the side of Journalism as I embrace the full Leveson report, on the side of the banks as their soulless acts have diminished the value of millions of account holders, yet here in this case, are they not on the morally higher ground? No matter how despicable Vulture funds might be regarded as, these people offered a deal on conditions of risk because no bank wanted them, or in the case of Argentina, as the USA seemingly prevented the IMF offering a deal.
Now, when the deal is due, the client requesting the deal is not willing to make payment. So, as the facts are shown, I have to be (alas) n the side of the vulture fund, who offered the deal. If not, then I myself must abandon the premise of accountability, which is pretty much not an option.
If we accept the implications of communicative rationality in the sphere of moral insight and normative validity as the setting for discourse ethics, then I would like to change it (mold it) into the following statement: “If we accept the implications of agreed contract terms of rationality in the sphere of moral choices and normative acceptance of a loan” then we are getting to the part why I added the Journalism article on accountability for journalism.
This I now link to the quote I mentioned from the Guardian article. This is the cost of doing business! Sometimes you win, sometimes you do not, but to go out in response to change the game, because there is a cost, then we have a new problem. Do not misunderstand me, if there is some kind of a bail-out deal, then that is fine, but it would be understandable if it comes at a cost, more important, it might have been avoided all together if the 2003 IMF deal had gone through, so why was the 2003 deal stopped?

I understand and I do not disagree that the Argentine government is stopping it all and taking the ‘default’ path, yet, that too will come at a cost. Accountability should prevail here too. Is it for the better or for the worst? That is a discussion that is speculated upon, but for now it is one that comes without a clear answer. So, I cannot, without clearly more evidence to agree with cabinet chief minister Jorge Capitanich here. You see, who signed for this all in 2003? It is the inherent consequence of governing. The bill is pushed forward, it is a dangerous game that the US is currently excelling at and so if you wonder on why I care about another deal for 1.5 billion dollars, it is mainly because this paves the way for America when it defaults on their 18,000 billion loans, then what?

When we see people hide behind statements like ‘too big to fail‘, you should also consider the fallout when things go wrong. Consider what once happened to the Dutch SNS bank and is now happening to the Argentinian economy, both impacts were felt in large ways and they are not even anywhere near the scale of the debt the US and Japan have. And as we mentioned Japan, is that not the fear many brokers have? If we see the text from Moody’s (at https://www.moodys.com/research/Moodys-Japanese-RMBS-and-ABS-default-rate-declined-in-April–PR_302652).

Someone or something seems to be pushing Japan along, holding them on the safe side for now. Yet, this economic high-wire act is nowhere near done and it is a long walk to go for now. When we read “For CMBS deals, Moody’s outlook for the next 6-12 months is negative, as it will be difficult to refinance defaulted loans with high loan-to-value ratios“, so as refinance is now getting harder and harder, consider the US bonds. Part of the US debt is also the ‘Interest Expense on the Debt Outstanding’ (at http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm), this is set for 2014 (up to October) to be almost $355 billion dollars. This is just the interest. At Bloomberg we see “The government will reduce net sales by $250 billion from the $1.2 trillion of bills, notes and bonds issued in fiscal 2012 ended Sept. 30“, this is clearly incomplete, as there is not mention of WHEN these bonds mature, but the overall sell of bonds will hit the US at some point. If we consider the CNS headline “$2,472,542,000,000: Record Taxation Through August; Deficit Still $755B“, so taxes are coming in, they are not enough as the deficit is around 30%, now consider that the due interest is going to be 15%-20% (because two months are currently not known) of all collected taxation. When the bonds are due, how much larger will the debt become?
I have mentioned it many times, but now as we see the reaction of fear as Argentina defaults, we cannot continue without seeing the threat and fear of Japan from defaulting, which will clearly push the US over the edge of that abyss too.

Here is where the issue becomes the dangers we fear. We seem to always mention that those who talk the talk should be walking the walk too. This has not been done by large by many, so now we talk the walk but no one is really accountable, making for a massively dangerous situation. If you even consider thinking that there is no danger here, try calling a Syrian hospital by telephone and ask them how they are doing. It might open your eyes really quick.

If we are to walk the walk then Argentina will default and we have a new situation, yet the unnamed danger is that ‘some’ deal will find its way, which is great for the Argentinian people, yet it also impacts the cost of doing business for all the other players. Have you consider the costs that this will bring everyone else?

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Tagged as A Philosophy of Accountability for Journalism, accountability, Argentina, bloomberg, cabinet chief minister Jorge Capitanich, democracy, IMF, J.S. Ettema, Jorge Capitanich, Leveson, Moody, Syria, T.L. Glasser, the Guardian, UK, US Congress, USA, Vulture Funds

July 22, 2014 · 11:55

8 Generations

I thought long about this and until this morning I had not made up my mind whether I would write this. You see, this is not based on facts (or at least extreme loosely facts), I had spoken to a priest about this, but as I see the article in the Guardian (at http://www.theguardian.com/commentisfree/2014/jul/21/five-biggest-threats-human-existence), I decided to write the story anyway.

Consider the notion, the one that Anders Sandberg wrote in his story “Not those who will live 200 years from now, but 1,000 or 10,000 years from now“. In my view the man might actually be an optimist. For the most we have been deceived so long (not by the fore mentioned writer), that we have not been heeding anyone’s word in matters of survivability.

What if we are ending the option of life the way we currently are? What if we have at the maximum only 8 generations left? Did you consider this? Why 8 generations? Well, the number is slightly random, we might actually only have 7 or even 6 generations left.

This train of thought started with two events. The second one is the one I wrote about in ‘Tusks!’ earlier this month. It was about the Ivory trade and how at this stage, elephants will be extinct in 15 years (a claim by the World Wildlife Federation). The first one was the news by several sources that Japan was intend on slaughtering whales again for ‘scientific’ purposes (at http://www.nbcnews.com/science/environment/experts-concerned-japans-talk-scientific-whaling-n156766). The interesting quote is “What bothers Clapham is that ‘whaling nations have said forever that they advocate sustainable whaling, and then they go on to ignore mounting evidence of population declines in the interests of profit’“. I must say that the IWC has not been overly outspoken in visibility of the numbers, some they have, some are estimates and it can all be found here: http://iwc.int/estimate. The numbers imply that between the two markers 1985-1991 and 1992-2003, the Minke Whales in the southern Hemisphere were ‘culled’ for almost 30%. That is a MASSIVE number! So far Japan has not produced ANY viable information on why whales have to die for their ‘research’. In my view, Japan has an obligation to openly produce the entire scientific data on the whales, with the spectrum of issues they want to prove/disprove by slaughtering whales. If they do not, it is only fair that we perform medical experimentations on the Japanese population in regards to resistance to radiation for the term 1944-1947 and 2010-2014. Will they wait until 30% of the population is ‘culled’ until they complain? I do reckon that national interest in Whale meat would likely go down.

Let us all remain calm and realise that this is not some anti-Japanese issue! But, the example is here for a reason!

The whale has a massive impact on the aquatic balance “When one species of animal that is important to the food chain dies it allows other species to thrive” (from whalefacts.org). In addition there is the quote “Studies have shown that the nutrients in sperm whale poop helps stimulate the growth of phytoplankton which pull carbon from the atmosphere to provide a cleaner and healthier breathing environment for all animals. Estimates state that as much as 400,000 tonnes of carbon are extracted from the air due to these whales each year!“, the whales also keep the krill population in balance, who in term deal with some of the carbon issues we create. Here is where it all becomes a bit weird. It seems that we, Homo Sapiens need Krill oil too. We have been taking massive amounts of it from the arctic and as such, we have denied the whales their food source. Another part is the quote “The adult Antarctic krill feeds preferentially on phytoplankton” implying that the whales themselves foster and nurture their own food source, making it a symbiotic relationship. “Several threats to Antarctic krill have been identified, including increasing commercial demand for krill oil and meal for the aquaculture, medical and cosmetic industries, as well as advancing technologies which enable much greater catches and quicker processing” show that we need the krill food source too, making the whale a competitor, as such, in conjunction with global warming (which removes the chances of successful Krill reproduction), should give us a larger pause then it is currently giving us.

All this has further consequences, as these two species are culled stronger and stronger, the predators in the arctic will end up with different needs. Like the whale, the Elephant has a similar impact. As the Lions and subsequent the Hyena’s lose this food source, they will have to pick on other sources. Consider that an elephant carcass will feed the pride for a week, taking them out means that they become solely dependent on the other species, which will then take a downturn in numbers too. How is all this linked to these 8 generations?

We have been feeding ourselves and through this our biosphere into extinction. The time we could have had to resolve issues are slowly and surely getting lost to us due to sheer greed! You do not have to believe me, but when was the last time you have beef without the fear of horse meat? Is it about profit (partially accepted as correct), or is this because veal is getting harder and harder to get? We see part of this at http://www.reuters.com/article/2014/05/23/us-usa-agriculture-inflation-idUSBREA4M0FI20140523, where it is stated that prices in the US are at a record high. They blame the drought, which might be true in part. Another side here is the fact that this planets population grew by 30% in the last 20 years, that is within two generations. This is the need to feed over one and a half billion more people. The US only grew by 22% in that time, but consider the given truth that you need greens and livestock to feed another 60 million and add obesity into the mix and you have the beginning of a food disaster.

It goes beyond food, which is the main event, but not the whole picture. The site IndexMundi is telling us, that the world requires 90 million barrels of oil EACH DAY! This number becomes an issue, when we know that the bulk of all oil comes from OPEC and the OPEC-12 reported in that same time a production of 31 million barrels a day. The entire world produces roughly 80 million barrels of oil a day, there seems to be the issue that we need more. Before you go into the idea that it is just oil, and like running water we have plenty. Think again, oil is begotten (for the lack of a better word), from the earth. These fields are finite plain and simple! If we take the following premise that over the last 12 years, we used on average 80 million barrels of oil a day and a barrel in 159 litres, then how much oil did we need to spawn? that number comes to 12.72 billion litres of oil each day for 4380 days, which gets us to a cube that is 59 Km by 59Km by 59Km. That is one massive cube and this is only for the last 12 years. If we accept that the atmosphere end (roughly) at 17Km, then we get an interesting rectangular cuboid which is just over 109 Kilometres long and wide reaching to the edge of our atmosphere (at twice the height of the Mount Everest). I think the picture is clearly shaping that we are seriously on route of consuming ourselves quite literally into extinction. That view is only enhanced when we see the extreme ways on how large companies are now trying to get a little more gas using shale gas methods of getting a little more out of rock. Do you think they would go this distance and setting themselves up to these dangers if it was not ‘essential’? The question becomes, is it greed, or is it finality that is getting us into these waters?

I do not claim to have the answers, but there is every indication that 8 generations might be optimistic. Yes, we see the words on ‘responsible’ fishing and on the need for other solutions. It was only last July when we saw on ABC the quote “Australia’s east coast is experiencing a chronic shortage of wheat and stocks could run out by November“. No matter what this precise reason is for that one newscast, we are confronted that a larger part of the 7 billion population (a 2012 number) needs bread on a daily basis. How much wheat is needed to make 7 billion buns of bread each day?

It is when we realise these astronomical numbers that we get a first inkling on the dangers we face when we hear the words ‘food’ and ‘shortage’ together. More important, what can we do to prevent the nightmare the eight generation will face once he/she arrives there. I am not the first one to make these claims and in many places, we see some ‘expert’ giving us numbers that it will not be such a harsh reality. Is that so? For decades global warming was ‘debunked’ by carefully selected ‘experts’ even today they are still trying to throw sand in many eyes to dissuade many from seeing the perilous times that lie ahead.

In this article I only raised two of the daily needs we face every day, what happens when we add the need for clean (healthy) water? Part of that was illustrated last February in the Guardian (at http://www.theguardian.com/environment/2014/feb/09/global-water-shortages-threat-terror-war).

The six areas in direct threat give us an indication that drought or not, we are in long term dire need for the one substance we cannot do without. If the human body needs 3 litres of water each day, then how will we get by on getting 21 billion litres of water each day for years to come? We all think too easy that this planet is 70% water. That water is not all fresh water and we have to share it with many other life forms (not just the fish). Feel free not to take my word on this. The WWF had this to say “By 2025, two-thirds of the world’s population may face water shortages”, that is just a decade from now, will this come to pass? Consider that the current population requires a body of water the size of the Dead Sea is not entirely comfortable when we consider the amounts of fresh water we have been polluting in recent years.

Time will tell, in the end we might not even get 8 generations to figure it out, however I always was an incurable optimist.

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Tagged as Adam Sandberg, Crude oil, Eliphants, food source, Japan, Krill oil, NBC News, OPEC, population, the Guardian, water, whalefacts.org, Whales, WWF

July 21, 2014 · 11:11

A political triptych

Whenever I see a trilogy I remember my first introduction to something in three parts. They were the works of Hieronymus Bosch. My earliest recollection of them was seeing his work with my own eyes when I was around 12 years old, making ‘triptych’ the most expensive word in my vocabulary in those early years. The events that have been at the centre of our lives lately seem to reflect the chaos we see in these famous triptychs.

First there is the issue I described earlier this week in ‘Here come the Drums!’. Russia has had an opportunity to throw ‘its’ image in several ways. Not because of me or because of the image it needs to have, but because of the image that it could have regardless of what the US claimed it to be. I was wrong! Whether Putin is as stupid as the US makes him out to be, or whether his advisers are working on self-serving needs is something only historians can decide upon. The fact that we see massive amounts of evidence that the local Donetsk population is giving the internet, the initial view (at http://www.youtube.com/watch?v=7fjpB5gw3iM) was nothing compared towards the anger we see clips where people are going through the debris (at http://www.youtube.com/watch?v=XGzcHd118mM). There were additional clips on how people were cheering on downing a plane and other issues of utter disrespect, which seems to have been removed from YouTube and seem too outrageous to add to this blog.

I should also revisit the comparison that I made with the question: ‘A lawyer walks into an insane asylum and hands an inmate a gun, who then kills the Warden of that place. Who is to blame?‘, I still feel it is relevant. The question was who supplied the BUK system, was it Russian, or was it captured? You see, in BOTH cases the international authorities should have been alerted to the dangers the area brought. It was the leaked conversation that angered many (including me). “Nikolay Kozitsin: That means they were carrying spies. They shouldn’t be f_cking flying. There is a war going on“, this baboon, or better stated, this baboon on Lysergic acid diethylamide is an army commander?

The fact that it was at an altitude of 30,000 feet should have been an indication that it could have been non-military. The events that follow, to the massive acts of disrespect and legal transgressions should have been a clear indicator that Russia should have stepped away from all this seems abundantly clear. Head my words, I am not stating that Russia had done anything wrong, the mere fact that it did not speak out loudly towards this transgression tarnishes them on (an undeserved) equal footing as Commander Nikolay Kozitsin. President Putin should have seen that one coming a mile away. This is nothing compared to the stupidity by Sky News shown on the Guardian (at http://www.theguardian.com/media/2014/jul/20/sky-news-presenter-brazier-mh17-luggage-crash), where Colin Brazier shows himself to be more ignorant then a first year Journalism student. His actions were met with outrage by fellow presenters Jacqui Oatley and Shelagh Fogarty. There is one correction that must be made, the initial information I had, was that the Data Flight Recorders (black boxes) were on route to Russia, whilst the information I currently have is that they had only recently been taken to Donetsk (at http://www.smh.com.au/world/mh17-black-boxes-under-rebel-watch-in-donetsk-according-to-separatist-leader-20140721-zv4lg.html). It seems only correct that I alter that part here.

There is another side to all this, as we see (at http://www.smh.com.au/world/john-kerry-says-us-has-enormous-amounts-of-evidence-linking-russia-with-mh17-disaster-20140721-zv4mz.html) that the MH17 disaster is linked to Russia, there are still questions that give worry to this. Yes, I agree that in my view Russia bares definite responsibility, not just by the possible SAM delivery (as the original is still in question), but the fact that the pro-Russian separatists were not stricken down in a verbal lashing from the Kremlin to give full cooperation, which is a much heavier transgression. Consider that these ‘pro-Russians’ would not listen, accept, or heed the words from Moscow; does that not make them simple terrorists? If that would be the case, how could Russia consider not distancing themselves from this disaster from the very first moment the events took place? If Russia is in league with these terrorists, then was the downing of MH17 not a clear act of war?

Is at the centre of it all?

Consider the financial situation the USA is currently facing, it is broke, which means it has no way to feed the war industry, which gives Moscow a distinctive advantage, if we accept that neither wants to go nuclear any day soon, then the acts of ‘sanctions’ is pretty much the biggest artillery the west can muster at present, even as we continue to see the results of acts within Donetsk. It is harder to tell whether I am right or wrong (I could be either), yet the inactions in Syria and now Eastern Ukraine seems to show a lack of directive from all NATO parties (not just the US). This all gives shape to the art on the left side of the Triptych.

The next issue is the one I also briefly touched upon, it is the escalating issues in Gaza, where it seems more and more clear that Israel has had enough of the threat Hamas has made over the last few years and the loss of support that Hamas is enjoying, as well as the US no longer having a clear and powerful hold over the region on an economic base is also a cause for Hamas to wonder whether their approach to issues would ever have worked to begin with. Now that Egypt is distancing itself more and more from Hamas, they are now hoping for a resolution through Qatar, where they seem to hope that the UN will be able to find options with the help of Sheikh Tamim bin Hamad Al Thani. The Sheik is a diplomatic force to be reckoned with, as a Sandhurst graduate, which is regarded as the finest military officer’s education in the world. The only issue that would remain is whether Hamas is in any way entitled to such distinctive representation. In one way, it might actually result in actual cease fire talks between Hamas and Israel; it is however also one of the final straws Hamas has left, if they decide to break that truce in any way, the results could not just end Hamas, it might actually end the options for any Palestinian Gaza. It could result in the biggest poker hand the Middle East has seen in a few decades. That and the option that progress could be in result will only emphasize the amounts of power lost to the US (who was utterly unable to make any headway here). It will also strengthen Qatarian influence over a larger portion of the Middle East, which could be exactly why Sheikh Tamim bin Hamad Al Thani might consider to assist in the matter as well as the motto he trained under ‘Serve to Lead‘. Achieving that might just leave the Academy General’s bursting with pride (the General who was leading the academy when the Sheik was a student there). If we go back to the Triptych, then this would be right side of the Triptych. So what is at the centre?

These two sides are linked to a much larger painting in the middle. It is without a doubt the economic sides we have seen overwhelming the left and the right side. It is not the economy of missile systems (which might be an implied reference), but it is the economic powers that are too scared to lose it all in a war, which is of course the smallest of reasons to consider war over, but it is a factor none the less. More important, it is the diminished economic power of the US that is centre on all this. It would be unfair to just refer to the US here, but the bulk of the EEC is in a worse shape than the US currently is, so that is why the US is still the central element in all this. Their inability to get control of their overspending is a massive reason for the ‘blame’ towards the US. But let us not forget that the UK is not without blame either. In its current shape (especially the massive debt) the UK is also lacking in power to set for the ‘demanding’ (or better stated ‘intensely requesting’) image that should be given towards Eastern Ukraine and Israel/Hamas in these matters. Even if we give the proper weight to the Guardian article on the GDP of the United Kingdom (at http://www.theguardian.com/business/2014/jul/20/gdp-surpass-pre-financial-crisis-level), the headline ‘GDP to surpass pre-financial crisis levels‘ is just an indicator and even though I admit that the UK is still getting back on the horse, the issue ‘ignored’ for now is that Gross Domestic Product is no real indicator of better times, only for now that this seems to indicate good times for the ‘rich’. People in the UK are still on massive levels of debt and that is not likely to change any day soon. There is still a shortage on jobs and those who do have a job are inclined to go along with outrageous amounts of legalised slave labour. Freedom comes at a price, or better stated, when big business rules (or massively influences) the actions of government, we see an unbalanced view on life and every inch they do not claim will come at another cost.

Here we see the elements of a triptych by Hieronymus Bosch. Either of the famous three of his triptychs could apply to the chaotic mess we are all facing. In the end there is enough imagery to debate which one is the best depiction. The economic sector would argue that we are in the triptych ‘The Garden of Earthly Delights‘, whilst the people under the pressures of this economy will counter that their fate is shown by the triptych ‘The Last Judgment‘. The view also reinforces the views outsiders have towards the entire economy. Partaking in it will always be better than watching the result on the outside looking in, because those on the outside will never get to partake in the game at all.

2014 might end up being a very decisive year for many of us!

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Tagged as Boeing 777, Colin Brazier, Donetsk, Hieronymus Bosch, Jacqui Oatley, MH17, Nikolay Kozitsin, President Putin, Qatar, Russia, Sandhurst, Serve to Lead, Sheikh Tamim bin Hamad Al Thani, Shelagh Fogarty, Sky News, the Guardian, triptych, US, USA, Youtube

July 8, 2014 · 10:04

To be deleted!

I stumbled upon an article by Kevin McKenna that was an interesting read. It was published last Sunday (at http://www.theguardian.com/commentisfree/2014/jul/05/google-right-to-be-forgotten-kevin-mckennas-own-confessions). The headline caught me at first stating “Don’t hide your dark side from Google. Much better to tell all“, which works out really well for Google, but what about the person? In his ‘journey’ as a starting Facebook user, this quote seems the strongest “And I realise with mounting horror that this is how real people with normal lives interact with each other and that it is I who am out of step once more. So I fear I may soon have to conclude my Facebook experiment before I alienate that dwindling band of those who still regard me with some fondness“, but as I see it, the article never ever goes anywhere near the issue why people want things to go away. The reference “we discovered that prominent people are beginning to deploy some arcane European privacy legislation to force Google to ‘forget’ about their historical misdemeanours“, sounds funny enough, but is that it? The following reference “American financier Stan O’Neal who helped drive his bank to ruination in 2007 were ‘deleted’“.

This sounds all fun, but is Google paying Kevin for this article? You see, Mr McKenna does not get within one mile of the actual issues, the dangers that Social media brought upon us all (many were likely never a consideration when Mark Zuckerberg came up with the idea to begin with).

We get the following from Forbes “But there’s another good reason for checking out a candidate’s Facebook page before inviting them in for an interview: it may be a fairly accurate reflection of how good they’ll be at the job” (at http://www.forbes.com/sites/kashmirhill/2012/03/05/facebook-can-tell-you-if-a-person-is-worth-hiring/). Here is the kicker: the workplace is riddled with people not really that great in sizing other people up, a fair chunk of them in HR and upper management. I have been around for a long time, and these people look at ‘presentation’. I have met my share of managers with ‘fuck all’ (pardon my French) idea of what actually needs to be done, like most sales people they will have a nice PowerPoint, and when reality hits, they will dump it on the people who will end up doing the actual job, which often enough is not them. In addition, we see recruiters who have no idea how to be a recruiter. I used to have one that never had anything for me and actually send ME the resume of others asking if I had a job for them. Really? These people will seek you out on Facebook and judge you for what YOUR FRIENDS will post on your page?

Mr McKenna has spent absolutely no words in that regard. To those youthful young undergrad recipients, Facebook could at this point be nothing less than a career death sentence; even if those around them know that those people will work their asses off getting it all done. That part is never on Facebook and they lost out on a job. Better stated: that corporation lost out on a person who would have been one of the best Returns On Investment EVER!

CNet adds a little more (at http://www.cnet.com/au/news/facebookers-beware-that-silly-update-can-cost-you-a-job/), here we see the headline “Study shows that companies have rejected 1 in 10 people between ages 16 and 34 because of something the person shared on social media“. CNet has graphics too, so check it out. It goes in the same direction as Forbes, but there is one quote that I have heard about, but never experienced, or met anyone who directly experienced it “In January, six states officially made it illegal for employers to ask their workers for passwords to their social media accounts“.

These people should reply with the fact that many agreements state the following “You must not reveal your password and must take reasonable steps to keep your password confidential and secure“, the very fact that personal privacy is transgressed to this degree is questionable, or is it?

In USA Today (and many other papers) we see the statement “Burglars use social media to target homes” (at http://www.usatoday.com/story/tech/columnist/komando/2014/01/03/social-media-identity-theft-home-videos/4248601/). It is not a new ploy, it has been around a little longer than that, but what is new is the linked approach that is slowly becoming visible.

Although at present, no ACTUAL events are currently documented, other than from the less reputable journalistic sources (Daily Mail and the Telegraph). There is more and more talk on how social media will influence your insurance claims. If you tweet your events, as might your children whilst on Vacation in a place ‘far away’, your local homestead might be missing several pricey items when you get home. Burglars keep their eyes on those who boast travel. It only takes one jealous school ‘friend’ for the parents to miss out on TV, Jewellery, computers and so forth. There is more and more talks on how insurance policies might not cover it in the near future and that mandatory alarm systems as well as spectacular premium rises are linked to these events.

So there is a massive need from many people to be forgotten all over the place!

A more long term consequence tells us (at http://healthissocial.com/healthcare-social-media-ethics/the-healthcare-insurance-impact-of-your-social-media-graph/), that social media goes so much further than that. As a data miner I have always seen this, but many are only now seeing the dangers. This article voices is perfectly by stating the following two thoughts:

“What if health insurance companies realized that with whom you associate may correlate to your health and thus risk?” and “What if your online behaviour indicated (directly or indirectly) your health behaviour – either psychiatric or otherwise?“, so not only could your health care cost spike, in some cases you might not be able to get coverage as you are considered too much of a risk factor. So a person’s unadulterated need, to speak out ‘Suicidal and standing on the edge‘, might in light of their upcoming ‘healthcare premium to be’, seriously consider taking that one final step at that point.

There is one quote I saw that covers the dangers of Social Media that we should all mind “Behind every successful student , there is a deactivated Facebook account“. The issue for us all is that there is genuine truth in that statement (or status). Not because of what the student does, but because of what others do with the data and with the image incorrectly reflected. In one account I took a look at his page had references to ‘Hash Brownies’ and ‘Funky mushrooms on his bacon and egg roll this morning’. The man is a Vegan with an utter dislike for chocolate (I tend to get his chockies around Easter). So, will he see his premium rise by insurances in the future? Because SOMEONE said so?

So Mr McKenna, The ‘right to be forgotten on Google’ is not a strange concept at all, in this day and age it might be the next essential thing if we are to move forward in an affordable way.Because at this point, there is every indication that our cost of living could quite soon be linked to social media data. The worst thing is that mined data just is, and what is taken for ‘granted’ often never is, that is the one part that no cleaning pass in data mining can provide for, whoever claims it can, is in my view clearly lying.

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Tagged as CNET, Daily Mail, Facebook, Forbes, google, Kevin McKenna, Mark Zuckerberg, mental health, social health, Social Media, the Guardian, The Telegraph, USA today

June 30, 2014 · 13:43

Exit strategies anyone?

Today is an interesting day. The article in the Guardian (at http://www.theguardian.com/world/2014/jun/28/european-union-exit-will-harm-britain-says-cbi) is well worth reading and in addition, I must state that I am not sure whether I have made up my mind what would be the best course of action. I have been on both sides of this and I am currently on the fence. First of all, the UK must do what is best for the UK and beyond that the UK should do what is best for the Commonwealth. I personally think that this is the status as it should be at the moment. The question becomes whether Europe is the best for the UK. I am not talking about the Juncker issue (even though that seems to be part of any decision), but where should we be? The headline states “EU exit will harm UK, says leading British industry group“, yes THEY will talk in their own interest, they always do. The Eurostat numbers are unconvincing (at http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-22012014-AP/EN/2-22012014-AP-EN.PDF), today’s reserved savings are tomorrows signal to abundantly overspend funds, that much has been seen again and again ever since 2009, when the taps should have been closed. This is also at the heart of the matter for what is best for the UK. And in all honesty, the UK has overspent their quota a fair bit too. Now we have a new issue. Up to 2013 we got to see a picture from some of the more decently reliable sources, yet, now later in 2014, there is almost nothing on the projected and actual numbers for 2013. There lies the hidden issue, it is not that there is little, there is too little information now, so who to believe. When governments are not boasting, they are definitely hiding some issues under the carpet and those issues will impact the UK too. I will not bore you with the numbers UKIP gives us (at http://www.ukipmeps.org/uploads/file/Cost_of_the_EU_25_5_11.pdf), they are talking their own brand of flavour, as would Prime Minister David Cameron, but where is the truth?

My benefit here is that I speak half a dozen languages, which gives me additional sources. The ‘Nederlands Dagblad‘ gives us (at http://www.nd.nl/artikelen/2014/februari/28/lagere-overheden-verwachten-te-hoog-tekort) the following: “Gemeenten, provincies en waterschappen verwachten dat hun begrotingstekort dit jaar uitkomt op 3,7 miljard euro. Dat is zeshonderd miljoen euro meer dan volgens de afgesproken norm mag” [translated] “Municipalities, counties and Water boards (a flood control and water resources management group) expect that their budget shortage will total at 3.7 billion, which is 600 million more than agreed upon“.

So the Dutch are already coming up short at present. This does not mean that this will be the end result! At http://www.bnr.nl/nieuws/beurs/487506-1302/liveblog-economie-krimpt-begrotingstekort-naar-33-procent-in-2013, we see the mention that the Dutch will have a budget shortage of 3.3% in 2013 and 3.4% in 2014. How much of this is correct, and when were some projections made?

We see the Dutch news on how the American economy is down 2.9% and that Bank managers are now getting a sizeable raises, yet the overall shortages of the Dutch is not really discussed on sites with above average reliability (like the NOS). The only one in a ‘happy happy joy joy’ position is Germany who now seems to have a budget surplus. Again, the harsh cuttings Germany did from 2010 onwards paid off, but they seem to be the only one. France deficit was set at 4.1% for 2014, so as we see the list grow, is it truly a good idea to stay in the Euro group? Industrials might think this, but they will not be confronted with the financial measures that will hit the UK and its taxpaying citizens. I was at first in the same boat where I thought that going out of the Euro was a bad idea, but as we see the growing concern of nearly all EEC countries going over the deficit limit, can the UK afford to stay in there? Moreover, will staying in until 2017 turn out to be a dangerous issue?

This is part of the issues, which I have stated before. When, not if the American economy goes over the edge, those in deep debt will get a new approach to humility. That part is still a dangerous situation for the UK as well (with a balance of almost minus 1.5 trillion). So, the dangers of additional debts from Europe would cripple the UK as well. This is as I see it part of the reason why the UKIP got such a huge success. The bulk of the politicians and all the other parties have been dancing around the economic situation. Most people have noticed it and 26 months of ‘feigned’ economic recovery is nice for the industrials, yet the people have not seen ANY improvements in their lives, which is the centrepiece of all the stress out there. This is part of the situation all are avoiding.

If we consider the Independent (at http://www.independent.co.uk/news/uk/politics/tony-blair-nigel-farage-and-ukip-are-deceiving-british-public-and-holding-back-the-unemployed-with-immigration-rhetoric-9472289.html) we see another side. I would be willing to agree with this, yet the voice of Ed Miliband is not giving decent clarity and David Cameron is voicing the need of big business (to a larger extent), they all are talking in their own fast lane and the people end up being not in any good place.

Even now, less than an hour ago, Ed Miliband is quoted by Reuters as ‘looking to shed the anti-business label‘, which gives a lot less security to the people. In this confusion Nigel Farage is cleaning house as he is stating what people seem to want to hear. The correct critique remains how truthful are his statements?

This is what is driving the people in regards to an exit strategy. As the news is playing a game of what I personally regard as ‘managing bad news’ in several nations, the people are catching up and losing faith in governments in general. This is partially driving the demand for a European exit. The people are losing faith in the ‘facts’ as presented, because good news gets overinflated, bad news is managed and the press seems to help out governments and big business in not giving proper tallies, as too many are depending on advertisement funds (often from Big Business). We all seem to watch a weighted scale. Under those conditions, many prefer to go it alone and see that part return. Let’s not forget that before the Euro, the UK was in a pretty good position. The entire mass flocking to UKIP are remembering those days and they are hoping that they will return to these days and UKIP is talking right into that alley of expectations.

In regards to the article with the quote involving Tony Blair “The answer to the white, working-class unemployed youth in alienated communities in Britain is not to tell them their problems would be solved if there were fewer Polish people working in the UK, he said“. I tend to agree, but the truth is that these Polish workers seem to be getting some jobs and this is causing more stress with those desperately seeking work. I am not voicing any anti-Polish thoughts, the question becomes how did they get those jobs and more important, if this is how some businesses are getting cheap labour, why is this not dealt with in regards to unfair working conditions. The Telegraph (never a great source for quality info) is publishing articles on how 10% of a company is Polish. This is getting to the people, who do not look at the whole picture. The Independent is bringing us a much better story quality wise (at http://www.independent.co.uk/news/uk/home-news/migrants-in-britain-a-decade-on-the-poles-who-brought-prosperity-9278710.html). The article by Emily Dugan shows the story of a Polish entrepreneur, who because a success through hard work, employing dozens of people. This Radomir Szwed shows another side, one that does not get illuminated that often. It is a story all should read, only to show that immigration is not a source of job losses, but one that brings jobs too, yet the Telegraph is not that likely to bring such a story.

All this brings us to a less appealing story in the Guardian (at http://www.theguardian.com/politics/2014/jun/18/nigel-farage-far-right-european-parliament). As the power of Nigel Farage grows in regards to his European side whilst joining with former members of French ‘Front Nationale’ and a more extreme viewed Swedish party, the issues will continue. Even though there is debate on Nigel Farage, he sees himself as the person to voice the needs of Britain, a voice Prime Minister Cameron lost when his opposition to Juncker was defeated 26-2. If Nigel Farage delivers any victory for the British people in any way, the powers in the UK will change leaving the Tories very little options in regards to the EEC. Will David Cameron be forced to call an early vote to exit Europe? Perhaps Nigel Farage will have that option as he currently has the strongest options in Europe. However, not all is well in that regards either, now the votes are done, we see a splintering in what was a solid danger. Some are re-establishing themselves and some are defecting to the new Le Pen group. So, not all is quiet on the eastern front with the EEC.

These matters will bring question to any exit strategy we see on the European front. No matter what happens, until the people get some clear information on how the debts are, where they are and how deficits are going as well as their own options, there will be no relief. The party that brings the best story and adds true relief on the hardship the people in the UK currently have will get a massive spike in votes.

I am not sure any exit strategy will bring that, yet, when we consider the response by Richard Branson (at http://www.virgin.com/richard-branson/why-an-exit-from-eu-would-be-bad-for-british-business), my response is that this is not a given either. If we see what some Commonwealth partners are agreeing to within the TPP (Trans Pacific Partnership), then we are seeing how politicians seem to be lining American Big Business pockets, whilst not overly protecting the their own local interests. This will in the end hit back to the UK as well. Consider that these Trade Agreements are not at all discussed out in the open (which makes sense until some point is reached). It seems to me that the UK needs to talk to Australia, Canada and New Zealand at that point. Because not only will the TPP impact the UK, whomever signs the TPP could be in for a long rough spell whilst US and Japan will hunt down a new currency, which is no longer the dollar, but a currency named IPR (Intellectual Property rights). IPR will be the new gold over the next 10 years. Those who have enough of them survive.

This is the unspoken side of the exit strategy. As the EU is chained to the US in several ways, the UK must secure its future in any way it can, yes we must all get rid of our debts, but in equal measure the UK will rely on its entrepreneurs, which includes people like Radomir Szwed, that is the side UKIP is not really talking about and their immigration changes would have negatively impacted the UK.

I remain on the fence on whether the UK should or should not leave, but complete clarity is a must which is a side the press, in all their whining after the Leveson trials have remained awfully unclear about.

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June 29, 2014 · 11:05

What’s in a health system?

Another day, another view on the failings of an NHS system in the UK is presented through the newspapers. The interesting part is not that we read it or that we know about it, for the most it seems to be about a level of blind acceptance that the NHS system might soon be no more. We see more discussions (at http://www.theguardian.com/society/2014/jun/28/cameron-warned-nhs-in-danger-of-collapse). One quote is “the NHS needed an extra £15bn from the Treasury over the next five years ‘if you don’t want the system to collapse during the course of the next parliament’“. Now, that comes down to an additional 220 pounds for every person in the UK. The additional quote “The grim analysis is backed by some of the country’s top health experts“, Really? Is that the actual solution? Perhaps the UK has the ‘wrong’ experts in the field. First we see a 10 billion pound IT system that never works, then we get another failed infusion of 3 billion pounds. Could the issue perhaps be that throwing money at it is no longer a solution? In addition, in a greying economy, healthcare will be the most important thing over the next 10-15 years, so perhaps sitting down and designing a completely new NHS, then seeing how the old system could be migrated might be a much better idea (especially as the other ideas are not working).

“The quality of patient care will be compromised by not having enough doctors and nurses on the wards and in surgeries and clinics. The well-publicised failures of care at Mid Staffordshire NHS Foundation were caused by precisely this kind of cost cutting, with tragic consequences for the families concerned.” Is a quote that is in the article and I have a few issues with it. First of all, let’s take a look at the issue (at http://www.theguardian.com/society/2014/apr/28/mid-staffordshire-nhs-trust-fined-gillian-astbury), it is without any doubt a terrible event for the family. The quote “Mistakes were made as her ward underwent as many as eight shift changes and 11 drugs rounds per day. The system for handovers, when nurses arriving for the next shift should be informed of the needs of the patients, was ’inconsistent and sometimes non-existent’, the trust admitted.” So we can agree that there was a shortage, the point is, was it avoidable? This is where the issue starts. Throwing more money at it is NOT a solution, having 1 nurse per 5 patients is also a non-workable solution. The more people go into all this, the more time we see spend on handovers, with two sets of nurses getting/giving updates, not to mention the absolute fortune this setup will cost. I found the following (at http://straightstatistics.org/article/alcohol-related-hospital-admissions-set-tumble), it is about ‘Alcohol-related hospital admissions‘, the quote “If we limit the numbers to admissions wholly attributable to alcohol, the numbers have risen from 45,000 to 68,500, an increase of 52.2 per cent“. Really? Is that what doctors and nurses spend their time on? How about we change the approach to alcohol (and drugs for that matter) and take a page from the quotes of Ebenezer Scrooge “‘If they would rather die,’ said Scrooge, ‘they had better do it, and decrease the surplus population.’”

It seems harsh doesn’t it? Does it? Now consider the possibility that Gillian Astbury aged 66, might be alive if something is actually dome about the alcohol cases. We see a little more clarity (at http://www.staffordshire.gov.uk/Resources/Documents/s/ss/SSPCTAlcoholneedsassessmentforStaffscountyJan08.pdf), where we find the quote “Trend data published by the West Midlands Public Health Observatory for selected alcohol admissions show that between 1999/00 and 2004/05 there was an increase in hospital admission rates by 40% for men and 30% for women across Staffordshire County“.

How about actually change people? So let’s do the following, a drunk in need is no longer given medical aid. If some youngling wants to be heroic and binge drink himself into a coma, then let his body fight it off in some cage (of course if they have money for private care, then that will be OK). If the body is unsuccessful, it will die. Plain and simple! We will call their mother telling them they should have raised them better and the case is closed. Consider the benefit of lower costs to the NHS, unemployment numbers will go down and we might even see an increase in rental options.

I know this is not a pretty picture, but these so called health experts need to see that the current course is no longer an option. We could do the same for the drug addicted population and get an even healthier commonwealth. The issue is not just the approach of certain people; it is the entire look that non-action gives all. Consider the PDF I added the linked to, in Table 9 (on page 26), we see a changed trend of 272%. So, almost three times as many go for the bottle in a group? The fact that this is not dealt with is a plain joke, especially as the NHS gets to clean up that mess in addition to dealing with the ‘actual‘ sick. There are alternatives! One is that all alcoholic beverages are raised by 23% taxation, which all goes to the NHS, which seems unfair to the population that can actually temper their alcohol use. The UK could instigate a Swedish approach to alcohol (also expensive), but you can only get hard liquor on an identity card, which gets registered and you cannot buy more than 2 bottles a month. Or we let the alcohol abusers die. You see, we can go in all directions, but most people, weak as they are, are unable to make the hard decisions and will force a situation where more money is given. This is fair enough, but then we add taxation, including to the lowest income bracket, to get more money for the NHS. Now, these same experts will tell you that this is not a solution either.

There is no choice; hard options will have to be selected in one way or another. It seems that steering clear of some zero tolerance options have been ignored for too long and those who are actually trying to get healthy so that they can contribute to family and society are dying, like Gillian Astbury. This part is however not shown to such a degree by the journalists at large. There is one more table to consider in that PDF. In table 19 we see that the total of the alcohol misusers cause a massive £1,701,900,000 to the UK health economy. So if we need cut backs, then here is one point seven billion in savings. Mr Prime minister! (I think I just earned my knighthood and a small cottage in saffron Walden) I think that the total savings in damages that these drinkers are causing is considerable larger than just to the health economy.

I am all for a better NHS, I am all for giving doctors and nurses a better tomorrow and if just throwing money at it would make that difference, then I would be all in favour of it, but there is almost 10 years of data disproving that, we see an NHS system that is rattled by big business (pharmacy and IT for example) and politicians and the approach as it is at present can no longer be maintained. Perhaps we need to make additional changes to the patients as well. The healthcare is all about keeping track of data and details, what if the patient becomes the data carrier? What if the nurse has a tablet with details and patient numbers, which is transferred to the new nurse and as they go over it, they can verify with the patient chip? When I go into ANY hospital, I see a multitude of papers, folders and more papers and people entering reports in computers and then printing it all. What if we take the next generation in solutions and take away 30% of that workload?

When people ask which company will do this, the answer should be ‘None!’. The UK is filled with universities, some of them regarded as the most prestigious and brightest on the planet. Consider that most IT people, might claim experience, yet their drama skills are the only ones that improved for the most, is it not up to the Universities, those who are introduced to the newest ideas, design a solution that would make the work of the doctors and nurses at the NHS better, slightly more efficient and a truckload of less hassle! Is that such a tall order?

We will get to the solutions if we are willing to navigate other options. We have seen that the current path is not a success; new methods might not be a failure. It is a road that politicians should be willing to go, if only to make sure that a possible solution was not overlooked.

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Tagged as David Cameron, doctors and nurses, Gillian Astbury, health, Mid Staffordshire, NHS, Saffron Walden, straightstatistics.org, Sweden, the Guardian, UK

June 28, 2014 · 16:05

The insolvable solution

It is time to take another look at the frontier of our Irish brethren. Not that I am calling Sir Anthony O’Reilly a ‘friend’, ‘brother’, or ‘comrade’, but I am a lot less likely to be on the side of the bank, or am I?

You see, there are a few issues that I found interesting, however this could end up being a complete figment of my Imagination, but I let you decide.

First a little more on the consequences of this case, it seems fitting to use the Irish Independent (at http://www.independent.ie/irish-news/courts/former-billionaire-anthony-oreilly-loses-bid-to-postpone-aib-moving-in-on-assets-30389647.html) for this.

We can all agree that the following quote is a given “Mr O’Reilly’s legal team argued that if a stay was not granted, the consequences for him and two of his companies are ‘potentially enormous’“. Nobody likes to be forced to sell. I have been there, all being for different reasons, and I lost around 35,000 Euro on that little caper, so when it comes to holding grudges, I know exactly where Mr O’Reilly is at this particular moment in time.

The quote “Mr O’Reilly’s lawyers argued that he ‘is hopeful’ that the sale of his Castlemartin Estate in Co Kildare – described as ‘the jewel in the crown’ – would discharge most or all of the debt owed to the state-owned lender“, gives weight to my earlier title ‘The sharks are circling‘. The question becomes how or better to which extent the others will now move in as AIB is going for the jugular as per immediately.

This is the part that never made complete sense here. It is not about the debt, all parties agree, the fact that AIB will now get 100% of any risk back makes tactical sense, the fact however that AIB has only 11% of the debt and others the rest is also part of this little conundrum. The part that kept on re-emerging was ‘Providence Resources’.

It is nice that the Irish papers are staying on par, so here is the next part (at http://www.independent.ie/business/irish/providence-resources-post-loss-of-72m-in-2013-30388958.html). There are two bits that are interesting. The first is that they had a success in 2012 (as claimed). If Barryroe is a success, as claimed at (at http://www.providenceresources.com/uploads/interimresultshalfyearjune2012-finaltables.pdf), then why is AIB in such a rush to get to the jugular? In my view 3,514 barrels of oil per day comes to well over a quarter of a million a day. Which means there is money coming in, but is it?

Even though 2012 was a success, how much is coming in and how much is there to be made. This is where the issues rise. There is little news from either Exxon or Providence Resources. Is this the issue? You see, that is what I found initially too. There was little, but that does not mean too much. If the Barryroe well was still producing and under those conditions money was coming in, the banks could have made a deal with O’Reilly.

So, when I was going through the papers that I found, I was looking at a few things. I made a conspiracy theory reference for more than one reason. One of them was the reference I found in the AIB financial report. In 2011 a person named Declan Collier was prominently mentioned, it stated “Prior to joining the DAA he held a number of senior management positions with the global energy company, Exxonmobil“, He moved to another position on June 28^th 2012, yet he did not get any governance mention in 2012, yet there on page 5 we see “A short biography and background of all our Directors is set out on pages 168 to 170“, the new members Peter Hagan and Tom Foley, were mentioned, yet Declan Collier as a leaving member was not. This does not mean anything yet, but the fact that his remunerations were mentioned (as they should), having his details there with the governance team would have been more correct.

This is however not about being correct, or about the lack of governance details. Lets take a look at the events for filing the case. At http://www.rte.ie/news/2014/0526/619683-aib-oreilly/ we see that on Monday May 26^th ‘An action being taken by AIB against businessman Tony O’Reilly in relation to debts of more than €22 million has been admitted to the fast track division of the Commercial Court‘, in itself that is no large issue, filings are done at every twist and turn. The quote “He gave Mr O’Reilly ten days to file a reply to the bank’s claim and he listed the matter for 2pm on 23 June.” got to me however, I had to read up on a few things and I was impressed with the timelines of the Irish courts, these fine young legal eagles do not take it easy, still 10 days for a 22 million brief is a little short (but not wrong, improper or devious in any way).

So, why all these mentions? why this conspiracy theory line?

This is at the heart of the matter. You see, there is no indication of any conspiracy, yet looking at the prospects, the oil found and not to forget the events as they are unfolding, or better stated as they were not unfolding. ExxonMobil has made no press visibility in regards to the areas of Providence Resources at all. ExxonMobil is down a bit, but that is no worry, because of the sheer size of ExxonMobil. Yet, is it that hard to believe, or perhaps in more legal terms ‘is it more likely than not‘ that a person like Declan Collier keeps tabs on his past connections, all of them? Is it that far-fetched that he got the inside scoop form a ‘friend’ and he dropped perhaps a ‘hint’ with another friend? Is that so far out of the realm of possibilities?

In that regard, if so, perhaps the AIB did not act to get all of their outstanding debts, but to make sure they ended up with at least part of it? I left this all out of the initial article as it is basically the thoughts of a conspiracy theorist, but is it that improbable?

If these matters are indeed at hand (or not), then what will happen next? What news are some not made aware of (let’s be honest, it is not the job of ExxonMobil to readily give out bad news), yet this scenario gives another light to the AIB court case, it is as I personally see it not that far-fetched (I would say that wouldn’t I), but does this information change anything? When the others realise (if my assumptions are true), that they got the outside track and were surpassed by AIB, what will THEY do next?

I am not sure about this, yet, as having been the underdog myself on more than one occasion, if Providence Resources do hit pay dirt on a second well, how will the AIB then react? Will the credit range suddenly be ‘extended’? Let’s be honest, if O’Reilly gets back on track then the AIB will have pissed of 14% (possible 28%) of all the Billionaires in Ireland (they apparently have 7 of them). How much business will AIB miss out of then, especially as they are down 20 billion at present?
No matter how this rolls, keeping your eyes on the AIB for the near future might be entertaining.

Time will tell!

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Tagged as AIB, Barryroe, Castlemartin Estate, DAA, Declan Collier, ExxonMobil, Independent, Ireland, Irish Independent, Mr O'Reilly, Peter Hagan, Providence Resources, Sir Anthony O'Reilly, Tom Foley, Tony O'Brien, Tony O'Reilly

June 25, 2014 · 10:19

View to the North

It is again the guardian that calls my attention to events happening (at http://www.theguardian.com/politics/2014/jun/22/independent-scotland-startup-costs-200million). It is important to know that I have nothing against Scotland becoming independent. I think that the timing is not great as we are in a massive economic downturn, but the Scots will correctly ask when would be the right moment? Anyway, as this independence is becoming more and more of a reality, we all need to look at what happens after.

The Scots have a few advantages. As the Scots seem to be members of a conservative party with its motto “Let’s not trust a computer farther then we can throw it“, we are set with the positive part that not trusting computers is not at all bad (Yes, as an IT person I am stating this). The downside is that the average Scot can throw a log really far, so tossing a computer might not be such a challenge after all. The issue is in the headline of the article. “Independent Scotland’s start-up costs ‘could be as little as £200m’” and “Leading academic says that could cover duplicating core Westminster functions, but millions would be needed to build necessary IT systems“. I have an issue here. There is an underestimation of requirements here. Yes, overall the costs might seem low, but when Scotland realises that the costs go beyond initial costs and they get to deal with infrastructures, at this point the costs will not be contained that easily.

Why do I care?

Caring is not the best word here. I think that in this case it is more that I like to see goals succeed, even if I do not completely agree with them. Only a real loser is trying to do what they can to make others fail, making others fail is fair when you are at war and we are not at war with the Scots, or with Scotland. The fact that about 3-4 generations ago, my family was from Perthshire (as far as I could tell) does not work in either direction either.

The other quote is “the final tally would be decided in a ‘poker game’ of post-referendum negotiations, according to the leading economics professor who last month criticised the UK government for inflating his figures on the subject“. Since when would anyone decide certain matters in a poker game, is also beyond me. Becoming independent is either tactical or on principle and one should not gamble on the Achilles heel that the people could create in this manner. In that same matter I am not sure if I can agree with the setting that this professor sets. The reference is towards Professor Patrick Dunleavy at the London School of Economics. A person who very likely knows more than 10 times more about economics then I ever will, even if I started to study economics full time at this point.

As stated, I have issues. Scotland will need an infrastructure, services and other matters. Several Scotland, as part of the UK already has and I think they should just be given them, yet Scotland will now need a proper economical system and set up. A national bank, a defence structure and these things all cost money, often a lot more than most imagine. There is however the ‘other’ side. The quote “In May, the Treasury published a detailed analysis of the financial risks of independence which claimed that a previous report by Dunleavy put Scotland’s start-up costs as high as £2.5bn” feels equally overstated. In my view the truth is in the middle and leaning to the cheaper side. In my untrained mind the costs are well over 500 million, but remain steadily under 700 million. This all makes me wonder why the numbers of the treasury are so far off as well (remember, me is a non-economic).

It is this quote that gives a few insides into the views that are shaping within me “In a leaked Scottish cabinet memo, the finance secretary, John Swinney, estimated the costs of a new Scottish tax authority alone at £650m. The Institute of Chartered Accounts Scotland had put those costs at £750m, while other experts suggested a new welfare system would cost £560m“. Is this about independence, or is this about certain people getting ‘their’ greedy fingers in the Haggis called ‘the Scottish economy‘. This is the part I do partially get. We all seem to forget that Scotland represents an economic power in the books of someone, when that falls away into independence, some people will not feel too comfortable and they are all looking for keeping themselves involved.

My question becomes, what can be done and does not cost?

In the age of computers and millisecond decision, I at this time remember my old dentist. He was a Dutch dentist called ‘van Charante’. In the age of computers, this man had the most advanced filing system I ever saw. He had used folders and colour indicators that opening his drawer showed a multidimensional top line table in colours. He saw in seconds something half a dozen tables produced in any analytical system would not tell him in 5-10 minutes. I had heard some IT wannabe’s wanted to convert him. I do not think anyone ever succeeded there. Perhaps that is the direction Scotland should face. It might not be done within the 200 million imagined, but perhaps they could steer well clear of the 2.5 billion someone speculated.

What if the Scottish system reverted to the old systems, not just becoming one Scotland, but in many cases reverting to the 33 counties? Thirty-three areas of ‘almost’ self-management, with a few exceptions, like one police system. They would get a buddy system where the area does what it needs to do and the neighbours come to aid when needed (emergency services). In that case Orkney and Shetland would feel a little isolated, but that might be business as usual for them. The question will remain how to IT some of this, but a system consisting of 33 self-regulating satellites are likely to be more effective, then systems like taxation, healthcare and welfare trying to become three Scottish national systems. If my train of thoughts are correct, then once this is approach is solved, the Scottish system could be an actual WORKING template to fix the failed IT NHS system that has currently costed the UK 10 billion and counting and still not working that well.

Yes, in all this I left out Scottish defence. By the way, has anyone seen what they do with logs and hammers? You really want to run up their hills whilst they smile at you and throw you a gauntlet or two? I for one ain’t that stupid to begin with, but that might be just me.

A final quote from the Guardian is “The debate with Darling, which broadcasters say privately has been tacitly agreed for some time, is now expected to take place sometime after the Commonwealth Games, which end on 3 August. It would potentially be a defining moment of the campaign“, no matter what will be discussed on that day, the truth remains that with two approaches being so far apart, both sides have unresolved issues, without a proper light on both sides these talks will not be the marker of any beginning independence, it could end up being an acceptance on how far views leading to independence are still apart.

So, is my view the correct one? I honestly cannot tell, but I am in all honesty looking for solutions, like any puzzle, an independence remains a logistical conundrum with plenty of loose ends, solving the puzzle is at times the best challenge that can be faced. Getting others to see the puzzle the way I did is the next challenge and implementing that puzzle is another challenge still. Three links in a chain that leads to a solution. Micromanaging these events like the BBC did with their 5 questions (at http://www.bbc.com/news/uk-scotland-scotland-politics-26836126) seems a little too trivial an approach. Yes, these questions will need a solution and it will be up to Scotland to find them. I reckon the views we seen in regards to the disagreements between Theresa May, the current Home secretary and the European Court of Human Rights shows that the UK has its own puzzles to figure out and they have been at it a lot longer than Scotland.

May we all be one Commonwealth, supporting each other, fighting for each other and at times disagreeing with one another, especially when Scotland is playing England, at that time the disagreements must be loud, jolly and with a few better Scottish players on the Rugby field.

Go Wallabies! 😉

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Tagged as Alistair Darling, BBC, European Court of Human Rights, Home Secretary, Independent Scotland, infrastructures, Institute of Chartered Accounts Scotland, IT, John Swinney, London School of Economics, Orkney, Professor Patrick Dunleavy, Scotland, Shetland, the Guardian, Theresa May, van Charante, Wallabies, Westminster

June 24, 2014 · 11:24

The sharks are circling

Today my mind was stopped by a Guardian article of a different kind (at http://www.theguardian.com/world/2014/jun/23/sir-tony-oreilly-irish-billionaire-insolvent). The headline was interesting enough ‘Bank pulls the plug on Irish billionaire who owned Independent‘, but that was not the reason for my interest. To be honest, it was not the fact that some rich ‘boy’ was hitting bottom either. You take any spoiled millionaire brat and the moment he is funding his trust into cocaine, you know he is worse off than whichever other rich person losing it all.

The following quotes are not the interesting part, but they are essential for painting the picture. “O’Reilly went on to a successful business career, rising to be chief executive and chairman of the giant US food group Heinz“, and whoever knows about their Ketchup, knows they have the good stuff! “Lawyers for Allied Irish Banks said on Monday the bank had run out of patience with O’Reilly’s efforts to repay €22m (£17.6m) of loans and a further €23m due from two of his investment companies. The court was told he had further debts of €195m. AIB accused the fallen tycoon of being insolvent and asked the courts to enter a judgment against him which would allow the bank to take control of key O’Reilly assets” gives us little more than the position he has gotten themselves into and “O’Reilly told the bank last month he had sold investments worth more than $150m in the past three years, all of which had gone to repay borrowings. But AIB claimed only a fraction of that sum – $300,000 – went towards repaying its loans. Other creditors, who are owed about €195m, have agreed not to pull the plug to give O’Reilly more time to sell his assets in an orderly way” gives us only a small indication on the matter how things are resolved. The next shows that this is no dumb boy, we know that the Irish can at times be pretty clever, yet the quote “He became chief executive, based in Pittsburgh, in 1979, and 12 years later was the first non-family member to become chairman. O’Reilly helped to transform the firm – its market value rose from $908m (£533m) to $11bn.” implies him to be a genius. When you change a company and up the value by 1100%, you are what some might say, the stuff of legends, which is only confirmed by “When he bought into the Dublin media company, it had a turnover of just €12m but under his ownership it grew into a worldwide company which at one point included the Independent in the UK as well as publications in Australia and South Africa. He stepped down as chief executive of the company on his 73rd birthday”

There is a lot more to the Independent News & Media group which runs into the billions and then it suddenly hit me. This was all strangely similar to the movie Meet Joe Black, made over a decade before these events were taking place. Was Anthony Hopkins portraying Sir Anthony Joseph Francis O’Reilly? If so, I would love to hook up with his daughter (Claire Forlani, we men have dreams too after all). His ownership also included Waterford Wedgwood plc; those who care about China porcelain will know it to be one of the most revered brands ever.

So what is this about?

Things do not add up completely as I see them. It is like watching a pattern that does not really exist. Giving into it is merely voicing the conspiracy theorist in us. Take this quote from Wiki (not as an academic value, mind you). “The markets reacted positively to the news, especially to the explicit truce between the O’Reilly and O’Brien shareholder blocs, with Denis O’Brien voicing public support for Gavin O’Reilly as CEO-designate“, the approach before was that he had gone in so deep that his hunger for media truly rivalled that of Rupert Murdoch. A group, having assets in excess of 4.5 billion, whilst having almost 1.5 billion in debts. Some will not see any issue at this point. Consider that the revenue is almost at 1.7 billion and the profits are set at 110 million. So, even though not too bad, it is not a great position. This is what some might say a good time to start selling off the smaller parts. Of course this is still not on the mind of Sir Tony. This is where the Wiki quote becomes interesting. You see, Denis O’Brien seems to be the pushing element and his son is set to get the CEO position. So far there is an awful close resemblance to that movie ‘Meet Joe Black’. From the moment Gavin O’Reilly takes over and he is pushed out due to the pressure of Dennis O’Brien, it is a mere 3 years. By that time Dennis O’Brien holds onto more than twice the amount of shares the O’Reilly’s have.

This is part one. In this time, from my point of view, as the power is still firmly with the newspapers, Dennis O’Brien is already moving into telecom and radio stations. He is now regarded as one of the larger players in the UK. However, this is about Sir Tony O’Reilly.

When we see his assets, I almost see a picture of sliding technologies and Sir Tony did not move with his times. Whether it started with the removal from INM is uncertain. What is clear is that he had grown several businesses into behemoths, which makes the collapse of Waterford Wedgwood plc a mere ripple in a very large pond. The fact that his second wife is even wealthier than him should not matter, but the losses he and his brother in law (brother to his second wife) seem to tally towards half a billion.

Here we now see a certain pattern forming, even though thus far I have not mentioned the elements to that loom. Any person has values, profits, incomes as well as credibility. One element is the pushed change by Dennis O’Brien from the side of Independent News & Media. It goes however a lot further. Consider the situations the banks are in and have been in for at least 5 years. There are literally tens of thousands of people too far in debt with little chance to repay it. Then the information in the Irish Times hit me (at http://www.irishtimes.com/business/sectors/media-and-marketing/sir-anthony-o-reilly-locked-in-debt-negotiations-with-aib-1.1805920), and the one part I had almost ignored in the Guardian became a lot more visible. The bank, which was seen 4 times as ‘AIB’ in the Guardian article, gets a prominent place in the headline. So why is this an issue? Consider the following two quotes from the Irish times “A case has been listed for entry into the Commercial Court on Monday between AIB and Sir Anthony and two of his investment vehicles, Indexia Holdings and Brookside Investments” and “Brookside owns Sir Anthony’s coastal estate in Glandore, Co Cork, while Indexia is his private investment vehicle that holds his near 5 per cent stake in Independent News & Media and his share of the oil explorer Providence Resources“. So, there is no link, or so one would think. It is however weird that even in delayed matter, this is one customer that would repay the debts, so why this push? Is it not weird that forcing the hand of one party who will repay is somewhat strange in this day and age? Then we get this message (at http://www.independent.ie/business/irish/oil-giant-exxon-starts-160m-drilling-project-off-west-coast-29163728.html), which is more than a year old. Was oil found, is there a chance to find oil here? If not, then this is another half a billion bust for Sir Tony, making him pretty much broke. The following was found in the ‘ShelltoSea‘ site (at http://www.shelltosea.com/node/1890), considering that Providence resources (a Sir Tony company) is a partner in this then this quote “The Dunquin North and Dunquin South prospects hold combined recoverable reserves of 8.4 trillion cubic feet of gas and 316 million barrels of condensate, according to an offering document posted on Schlumberger Ltd’s IndigoPool Web site” means that there are vast amounts of money there, which makes the actions of the AIB odd to say the least.

Consider the Russian issues that are currently playing, whether they happen or not, will influence the value of the gas that was found. It is still the question whether oil will be found, it was not up to July 2013 as was reported through Reuters, yet the given options mean that there is still a vast amount for Sir Tony to hold on to his 750 acre cottage. It is the final link we get when we read this headline “Taxpayers will not lose money on the bailout of AIB” (at http://www.independent.ie/business/irish/taxpayers-will-not-lose-money-on-the-bailout-of-aib-bank-chief-30367989.html), So it was not about Sir Tony, it was about the other acts by the bank, holding onto the loans for Sir Tony that are now the issue of a possible upcoming forced fire sale. The banks statement “He added that the bank has paid more than €2bn to the State in fees and interest on rescue loans since the crash” give the message we were wondering about. The banks are slowly losing options, the money us due and as such, some visionaries are now under the hammer. Whether the acts of Denis O’Brien are at the centre of what could be seen as the fall of Sir Anthony Joseph Francis O’Reilly remains to be seen. The acts that are clearly within the realm of ‘the cost of doing business‘ are drawn in the sand. It reminds me of the quote Penn Badgley tells Zachary Quinto in the movie Margin call. ‘In the end one man wins, one man loses‘ is harsh and to the point, but as Zachary responds ‘You know that there is more to it than that‘ is equally correct. Two movies both created before the actual events that played out here are giving us the fact that sometimes life is like the movies, even the bad parts.

Sir Tony is a first eye witness to these events. What we at the sidelines see is that the banks are now slowly in a do or die presentation of liquidating what the banks regard as ‘risky investments’. For the most, we should be happy, but can we? The money remains gone and when the fire sale goes through and someone ends up finding any oil at a cost of 0.1 cent on the dollar, how many friends will the Allied Irish Banks end up with then, considering the boat load of scandals they were linked to?

Perhaps the most worrying part for most of us is not that a wealthy man has lost it all, but that banks are now closing ranks. We are so used to seeing the wealthy get away with proverbial murder shows that the banks are at the end of their ropes, which means that the little leeway we ones had is likely gone too. It should also be clear that this shows us all that the economy is nowhere near recovery; it is for the foreseeable future on a very tight arrangement with whomever has any actual wealth left.

A view we have not been introduced to until now.

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Tagged as AIB, Allied Irish Banks, Claire Forlani, Denis O'Brien, Dennis O'Brien, Dublin media company, Dunquin, Gavin O'Reilly, Glandore, Heinz, Independent News & Media, INM, Irish times, Margin Call, Meet Joe Black, Penn Badgley, Rupert Murdoch, Schlumberger, shelltosea, Sir Anthony Joseph Francis O'Reilly, Sir Tony, the Guardian, The Independent, Waterford Wedgwood plc, Zachary Quinto

June 22, 2014 · 20:00

The Illusion of control

It is three days after writing ‘Concerning the Commonwealth!‘, I stand by my piece. I think that the Commonwealth is facing increasing issues all over the field and as the numbers go up and up and up, healthcare will take a centre seat in a diminishing population of workers, which by the way include issues that will hit Australian shores too. Today (at http://news.sky.com/story/1287088/government-has-lost-control-of-the-nhs) we get to see more about the NHS, the mention of a 3 billion pound fiasco, which gets attached to the name Andrew Lansley, who is currently Leader of the House of Commons. He is also behind the Health and Social Care Act 2012, which is regarded to be highly controversial. However, before we go into any controversial parts, try finding a document called ‘ABPI UK NHS medicines bill projection 2012 – 2015‘, it is a PDF file (the Google link was too messy). There is a massive revelation on page 5, which diminishes a bible chapter with a similar name to a mere Paddington bear story.

As we ignore earlier mentions of a shake-up gone awry at 3 billion and mentions of an IT structure at the price of 10 billion that never worked, here we see that over the term 2013-2015 the use of brands go up from 14.2 to 15.5 billion, yet generic medication needs only rises from 3.2 to 3.9 billion. The interesting part is that even though there is still a brand growth, the bio-similar mention (generics) go up from 134 to 328, so there is more than 100% growth in change to generic medication, whilst the cost is still growing steadily on both sides (generic versus brands), what would the brand side have done if the generic side did not exist?

Three days ago I was extremely outspoken in regards to the need to get the NHS costs down. It seems that the search for generic alternatives is taking a backseat to other options. In an age of finding ways to make ends meet, the Health and Social Care Act 2012 has no space reserved in regards to the need for a stronger presence of generic medication.

When we look at:

233 General duties
(1) In exercising its functions NICE must have regard to—
               (a) the broad balance between the benefits and costs of the provision of health services or of social care in
               England,
               (b) the degree of need of persons for health services or social care in England, and
               (c) the desirability of promoting innovation in the provision of health services or of social care in England.

Why was the following not added?

(d) the choice of generic medication where possibility for a responsible health care alternative warrants it.

Now, I will be the first one to admit that my choice of words is not the best one, but it seems where it is known that generic medication is such an important part for the survival of the NHS, that no mention at all (as far as I could tell) seems to raise a few more questions. Key message 4 on page 11 of the PDF shows exactly the part that matters: “Nine of the current top 20 selling brands lose patent exclusivity between 2012 and 2015” and when we consider the growth through bio-similars, we see that the right path seems to be taken as we read the numbers from the office of health economics. So, there is a path to better growth through managed costs (to some degree), the question becomes, why is this report quoting Jane Ellison as secretly taped? More important, why is Sky News not giving proper light to the NHS issues as they are (to a small extent) resolved? Why are they not taking a look a Professor Adrian Towse, Jon Sussex, Lesley Cockcroft or Martina Garau. I would think that the latter two as statistician and economist might be able to light a candle in the tunnel of ambiguous ‘tell tailing’ darkness ‘some’ are sailing.

None of these matters are coming to light at any stage. Even the Guardian on April fool’s day, did little more then http://www.theguardian.com/society/2014/apr/01/health-service-biggest-challenge-history-nhs-boss. I will admit that the article of the Guardian was decent, yet the quote “the NHS is facing a perfect storm of rising demand, funding pressures and worryingly low staff morale“, no matter how true, seems to be about the hardships (which remain true). Yet the information that the Office of health economics seem to have is escaping these Journo’s of bad news writings. Slide 13 of the initial PDF shows an even stronger view on how the UK is getting by, whilst the US is facing an overall hike from 176% to 281% compared to the UK index, Only Spain, Finland and France were barely better off. That part remains in question when we consider their population, if the results was correctly weighted (small oops on that slide), then the pressures for patent change from American shows just how desperate the American position is, which is shown even stronger on slide 6 when we see just how hard medication hits both Japan and USA as they spend well over 2% of GDP there, whilst the population of Japan is twice that of UK and the population of the USA is set at well over 400%. These slides will also leave is with other questions in several regards, yet the initial positive view is not reverberated over the press sites, or by the UK journalists. It seems to me that the information by certain newsgroups, especially in the LACKING sight on the importance of generic medication leaves us with questions. However, the Guardian was all over the business side of Pfizer trying to take over AstraZeneca. Did no one properly wonder why they were willing to dish over 69 billion? When did a US company EVER spend such an amount unless they knew that they would end up with double the amount? When we consider those events, we should wonder why the papers aren’t a lot more outspoken in regards to informing the public.

Even if this was all not true, don’t you think that the press would (should is a better word) have been all over the members of the Office of health economics I mentioned asking them the questions I am voicing and a few more after that? Is the silence of the press not deafening? The late April article in regards to Pfizer – Astranezeca headlines as ‘Pfizer refuses to guarantee UK jobs if AstraZeneca takeover goes through‘, which should make us wonder whether this is about income, jobs or patents. Would that takeover stopped any patents, or at least delayed them? If many patents have 1-2 years left, why pay that many billions, which information was kept hidden from us? It is the quote from Pfizer CEO Ian Read that states “The combination of Pfizer and AstraZeneca could further enhance the ability to create value for shareholders of both companies and bring an expanded portfolio of important treatments to patients.” This is a fair, honest (to some degree) and clear message. It is about the shareholders and the message that these billion will come back to ‘us’ and then some. This is clear business, I do not object, yet the overview for the UK? What will it cost them besides jobs? We saw little of that and the NHS has been played like a piñata donkey for a little too long. This is not me stating that the NHS is okay. Actually it is far from that, it is about getting the proper illumination on events, which does not seem to be happening either.

In the end, the quote in the Sky News article “A spokesman for the Department of Health told Sky News: ‘Giving operational control for the day-to-day running of services to doctors was the right decision but we’ve always been clear that ministers are responsible for the NHS’” might have been a correct one, the added information could have been a lot more insightful. When you Google ‘Office of health economics‘ you will not find any links to any newspaper, which is puzzling when you go to the Office of health economics and look at some of their publications. If I would add one more ‘light‘ remark then it would be that the members of the editorial and the policy board of the Office of health economics seem to have more degrees then a Kelvin scale, making them in my mind an essential source of health information for any journalist.

So where are these articles informing the public?

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Tagged as ABPI UK NHS medicines bill projection 2012 – 2015, Andrew Lansley, AstraZeneca, generic medication, Health and Social Care Act 2012, health economics, Ian Read, Jon Sussex, Lesley Cockcroft, Martina Garau, NHS, Office of health economics, Pfizer, Professor Adrian Towse, Sky News, the Guardian, UK

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