Category Archives: Politics

The Right Tone

Today we do not look at Ahmad Khan Rahami, we look at the engine behind it. First of all, let’s get ugly for a second. If you are an American, if you think that Edward Snowden was a ‘righteous dude’, than you are just as guilty as Ahmad Khan Rahami injuring 29 people. Let’s explain that to those who did not get through life through logic. You see, the US (read: NSA) needed to find ways to find extremists. This is because 9/11 taught them the hard way that certain support mechanisms were already in place for these people in the United States. The US government needed a much better warning system. PRISM might have been one of these systems. You see, that part is seen in the Guardian (at https://www.theguardian.com/us-news/2016/sep/20/ahmad-khan-rahami-father-fbi-terrorism-bombing), the quote that is important here is “Some investigators believe the bombs resemble designs released on to the internet by al-Qaida’s Yemeni affiliate through its Inspire publication“, PRISM would be the expert tool to scan for anyone opening or accessing those files. Those who get certain messages and attachments from the uploading locations. To state it differently “the NSA can use these PRISM requests to target communications that were encrypted when they travelled across the internet backbone, to focus on stored data that telecommunication filtering systems discarded earlier“, so when a package is send through the internet and delivered, it gets ‘dropped’, meaning the file is no longer required. The important part is that it is not deleted, it is, if we use the old terms ‘erased’, this is not the same! When it is deleted it is removed, when it is erased, that space is set as ‘available’ and until something else gets placed there it is still there. An example you will understand is: ‘temporary internet files’. When you use your browser things get saved on your computer, smartphone, you name it. Until this is cleaned out, the system has that history and it can be recalled with the right tool at any given moment. PRISM allows to find the paths and the access, so this now relates to the bomber, because if correct, PRISM could see if he had actually gotten the information from Inspire magazine. If so, a possible lone wolf would have been found. Now, the system is more complex than that, so there are other path, but with PRISM in the open, criminals (especially terrorists) have gotten smarter and because PRISM is less effective, other means need to be found to find these people, which is a problem all by itself! This is why Edward Snowden is a traitor plain and simple! And every casualty is blood on his hands and on the hands of his supporters!

The right tone is about more than this, it is also about Ahmad Khan Rahami. You see, he would be a likely recruit for Islamic State and Al-Qaida, but the issue is that his profile is not clean, it is not the target recruit. You see, apart from his dad dobbing him in in 2014, he stands out too much. Lone wolves are like cutthroats. Until the deed is done, they tend to remain invisible (often remain invisible after the deed too). There is still a chance he allowed himself to be used as a tool, but the man could be in effect a slightly radicalised mental health case. You see, this person resembles the Australian Martin Place extremist more than the actual terrorists like we saw in Paris. I reckon that this is why he was not charged at present. For now he is charges with attempted murder (3 hours ago), yet not all answers have been found. You see, the quote “they had linked Rahami to Saturday’s bombing in Chelsea, another unexploded device found nearby, both constructed in pressure cookers packed with metallic fragmentation material. They also said he was believed to be linked to a pipe bomb that blew up in Seaside Park, New Jersey, on Saturday and explosive devices found in the town of Elizabeth on Sunday“, the proper people need to ascertain whether he is just the set-up, or a loser with two left hands. The FBI cannot work from the premise that they got lucky with a possible radicalised person with a 60% fail rate. If he is the start of actual lone wolves, PRISM should have been at the centre of finding these people that is if Snowden had not betrayed his nation. Now there is the real danger of additional casualties. I have always and still belief that a lot of Snowden did not add up, in many ways, most people with actual SE-LINUX knowledge would know that the amount of data did not make sense, unless the NSA totally screwed up its own security (on multiple levels), and that is just the server and monitoring architecture, yet I digress (again).

The big picture is not just the US, it is a global problem as France found out the hard way and new methods are needed to find people like that. The right tone is about keeping the innocent safe and optional victims protected from harm. The truth here is that eggs will be broken, because an omelette like this needs a multitude of ingredients and not to mention a fair amount of eggs. The right tone is however a lot harder than many would guess. You see, even if Man Haron Monis (Martin Place Sydney) and Ahmad Khan Rahami both could be regarded as mental health cases (Man more than Ahmad), the issue of lone wolf support does not go away. Ahmad got to Inspire magazine in some way. Can that be tracked by the FBI cyber division? It might be a little easier after the fact, so it becomes about backtracking, but wouldn’t it have been great to do this proactively? It will be a while until this is resolved to the satisfaction of law enforcement and then still the question becomes, was he alone? Did he have support? You see a lone wolf, a radicalised person does not grow from within. Such a person requires coaching and ‘guidance’. Answers need to be found and a multitude of people will need to play the right tune, to the right rhythm. The right tone is not just a mere consideration, in matters like these it is like a red wire through it all. It is about interconnectivity and it is always messy. There is no clear package of events, with cash receipts and fingerprints. It is not even a legal question regarding what was more likely than not. The right tone is also in growing concern an issue of resources. It isn’t just prioritisation, it is the danger that mental health cases drain the resources required to go after the actual direct threats. With the pressures of Russia and the US growing, the stalemate of a new cold war front works in favour of Islamic state and the lone wolves who are linked to someone, but not usually know who. The workload on this surpasses the power of a google centre and those peanut places tend to be really expensive, so resource requirements cannot be meet, so it becomes for us about a commonwealth partnership of availability which now brings local culture in play. The intelligence community needs a new kind of technological solution that is set on a different premise. Not just who is possibly guilty, but the ability of aggregation of data flags, where not to waste resources. For example, I have seen a copy of Inspire in the past, I have seen radicalised video (for the articles). I don’t mind being looked at, yet I hope they do not waste their time on me. I am not alone. There are thousands who through no intentional act become a person of investigative interest. You see, that is where pro-activity always had to be, who is possibly a threat to the lives of others? The technical ability to scrap possible threats at the earliest opportunity. Consider something like Missing Value Analyses. It is a technique to consider patterns. SPSS (now IBM Statistics) wrote this in its manual “The Missing Value Analysis option extends this power by giving you tools for discovering patterns of missing data that occur frequently in survey and other types of data and for dealing with data that contain missing values. Often in survey data, patterns become evident that will affect analysis. For example, you might find that people living in certain areas are reluctant to give their annual incomes, thus creating missing values in your data. If you leave these values out, are your statistical conclusions valid?” (Source: M.A. Hill, ‘SPSS Missing Value Analysis 7.5’, 1997). This is more to the point then you think. consider that premise, that we replace ‘people living in certain areas are reluctant to give their annual incomes’ with ‘people reading certain magazines are reluctant to admit they read it’. It sounds innocent enough when it is Playboy or penthouse (denied to have been read by roughly 87.4% of the male teenage population), but what happens when it is a magazine like Inspire, or Stormfront? It is not just about the radicalised, long term it must be about the facilitators and the guides to that. Because the flock is in the long term not the problem, the herder is and data and intelligence will get us to that person. The method of getting us there is however a lot less clear and due to a few people not comprehending what they were doing with their short sightedness, the image only became more complex. You see, the complexity is not just the ‘missing data’, it is that this is data that is set in a path, this entire equation becomes a lot more unclear (not complex) when the data is the result of omission and evasion. How the data became missing is a core attribute here. Statisticians like Hackman and Allison might have looked at it for the method of Business Intelligence, yet consider the following: “What if our data is missing but not at random? We must specify a model for the probability of missing data, which can be pretty challenging as it requires a good understanding of the data generating process. The Sample Selection Bias Model, by James Heckman, is a widely used method that you can apply in SAS using PROC QLIM (Heckman et al., 1998)“, this is not a regression where we look at missing income. We need to find the people who are tiptoeing on the net in ways to not get logged, or to get logged as someone else. That is the tough cookie that requires solutions that are currently incomplete or no longer working. And yes, all these issues would require to be addressed for lone wolves and mental cases alike. A massive task that is growing at a speculated 500 work years each day, so as you can imagine, a guaranteed billion dollar future for whomever gets to solve it, I reckon massive wealth would be there for the person who could design the solution that shrinks the resource requirements by a mere 20%, so the market is still lucrative to say the least.

The right tone is an issue that can be achieved when the right people are handed the right tools for the job.

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The UK NHS is fine

This is the view that some seem to impair on the Britons. When we look at the article (at http://www.bbc.com/news/health-37331350), “Seven-day NHS ‘impossible under current funding levels’“, we see that there is an initial massive problem. I have no reason to doubt any of this, yet consider the issues in play. The Guardian gave us “Jeremy Corbyn has urged his supporters to campaign for jobs and the NHS once the current leadership battle is over. A year and a day after he was first elected as leader, Labour’s leader told a rally in Brighton that whatever the result, he hoped that they would join with him to convince the rest of Britain to join in a quest for a fairer society“, this is just a from one article. Yet, when we look a little further we get the Canary, which gives us “All the time I’ve been in parliament, I’ve been opposed to privatisation of the NHS and I voted against it with colleagues in the Parliamentary Labour Party over many years because we wanted to see a fully-funded, public, National Health Service. The Tories have sought to privatise it. A Labour government will have to take the whole NHS into public ownership and make sure it remains there. The next Labour government will go further than reversing Tory cuts. We intend to deliver a modern health and social care policy, fully publicly provided, and fully publicly funded, by integrating health and social care into a single system, so that everyone gets the care they need when they need it.” (at http://www.thecanary.co/2016/09/05/jeremy-corbyn-lays-out-his-plan-for-the-nhs-in-under-a-minute/). You see, we all want that, the Conservatives are not against it, the government just cannot afford it such a solution. When you take the government Credit Card and spend over a trillion pounds. Under Labour the debt went from less than 400 million to well over a trillion. Even though 2004 did not hit the UK as hard as other places, Labour should have changed their approach to budgets by a lot, then in 2008 there would have been no option but to radically implement austerity measures. This was never done the way it required to be. The people were told these overly optimistic views, mainly, as I personally see it to let money roll. In December 2007, the 2008 forecast was between 1% and 1.3%, The European Commission in 2008 was “In summary, growth in the UK economy is expected to slow to around 1¾% in 2008. In 2009, with no large carryover effect from 2008, the gradual recovery in domestic demand through the year will bring annual growth to just over 1½%“. Yet, when we see the BBC report (not forecasting) at http://news.bbc.co.uk/2/hi/business/8479639.stm, we see that 2008 went per quarter from +0.6% to -1.7% in 2009 it grew from -2.5% to 0.1%. So at no point was any forecast ever met. This is something that has been going on for over a decade. Not just the UK mind you, the EU as a whole is playing that same managed bad news cycle that starts with overinflated positivity whilst those behind this game are delusional beyond belief. Until a massive change is made in the approach business and politicians are taking to blow up the governmental credit card. This relates to Jeremy Corbyn because unless the man was lobotomised in 2001, he should know better. Under Labour governance, the debt went up by a little over 600 billion pounds. Did they not consider the consequences? Overspending year after year, followed by managed bad news is not a solution. It never was and any politicians voicing that it could should be barred from public office for life! (Again, this applies to both sides of the political isle). That simple realisation is all UKIP needed and the mistakes made today and the symbiotic relationship of required spending between business and government needs to come to an end. In this coming decade we need actual solutions, an actual path to restore the pushed imbalance of Wall Street status quo pushed us all towards. So until we all realise that, the NHS is fine, because soon many people will have too many additional problems and the NHS will not show up on their radar. That is my prediction if the current wave of weighted misinformation continues.

So the NHS is fine according to those who needs funds to the directions they desire. You see, here we get confronted with the reality that the Conservatives are dealing with. Do you actually think that the quote “Prime minister declines to guarantee points-based system and extra £100m a week for health service“, the reality of a budget is that money runs out. It did 2 years ago and solutions need to be found. I personally, as a conservative would have preferred that the NHS was higher on the list. Yet, reality got in the way here too. The UK got into Brexit and we all knew that there would be consequences even though realistically the extent would never be a given. In that regard, the issues that Japanese PM Shinzo Abe raised might be regarded as a joke. My reasoning here is that the quote “Countries such as Japan have already warned the UK that a lack of clarity about Brexit and loss of the benefits that access to the single market brings could lead” brought. So this PM is crying on the UK doorstep whilst he should have asked President of the European Union Donald Tusk. No, he wants to know this from the UK, which in my view makes him sound more like a servant of the Washington Oval Office than the PM of Japan he is supposed to be. In addition, is it not interesting that an organisation like the EU has nothing in place regarding the notion a leaving nation will have as an impact of its structure? All this reflects back to the NHS, because as we see more and more political bashing from the people who are now finally realising that their Gravy Train is about to stop and that their cushy incomes based upon virtual works and situations will not continue, now they all come up into the light to push people into continuing disaster that could soon be the former EU.

This all relates to the NHS, because it will impact the NHS. I am not pushing for the entire Junior Doctor Contracts. Whatever the stance is there, the truth is that a pilot strike for better conditions would be the same, the airline would be put under pressure, but the airline would continue. With the NHS it is not that simple and the impact could be harder, yet the people have a right to stand up what they consider to be their right. Yet in all this people are very easy to ignore that the government has been giving into pharmaceutical companies not just the TTIP and in that regard they did not take a tougher stance on those pharmaceutical parts, opening stronger ties with India and the essential need for Generic medical solutions (where applicable), because that also impacts the NHS, lower costs for medications means more for staff, equipment and location. We all accept that the NHS needs solutions and so far there is a lack of actual actions that are leading to longer term solutions.

Yet we need to see that Labour isn’t the only lose screw on the political bench, Tim Farron from the Liberal Democrats are on the same foot. I gave my answer earlier. Unless the UK can get the budgets truly under control and until massive changes are implemented that will allow for better budgeting, the NHS would stop because business people want profit through privatisation and too many people are wasting the true future options of Britons through misrepresentation of forecasts. If you think that this is off? That forecasting is too complex, which can be concurred by many including me to some extent, it is not the case to the extent that we saw for too long a time. I discussed part of this in ‘A noun of non-profit‘ (at https://lawlordtobe.com/2013/05/15/a-noun-of-non-profit/), in addition there is ‘Cooking the books?‘ (at https://lawlordtobe.com/2014/01/22/cooking-the-books/) where I proved some of these points and showed the danger. So basically, the predictions I made in January 2014 are now showing to be correct. So as people are looking at a way for the government to spend more money and show cooked forecasts, consider the next time this is done and the austerities that will then follow., We can no longer continue this irresponsible push for unrealistic solutions that do not lead anywhere and takes us to look away from the solutions that actually need solving. The NHS needs solving and it needs it now.

There is no debate about the NHS and privatisation. Everyone would happily get rid of the idea if there was money to do that. I am not mentioning the aging population, because that has been known for a very long time and we can only partially blame the economic crash, because that hit everyone square in the face. So when I read the LibDems demanding the end of playing politics, whilst they are sitting next to Labour doing just that, we have to wonder where they got their view from. The independent reported only 3 days ago. The article (at http://www.independent.co.uk/news/uk/lib-dems-demand-end-to-playing-politics-with-the-nhs-a7315236.html) gives a few quotes on that matter. “Mr Lamb has also launched a consultation on the introduction of a NHS specific income tax, which would ring fence a possible one pence per pound earned for the NHS budget, and appear on people’s payslips as such“, that is an optional solution. You see, this was introduced within the Netherlands decades ago and it solved plenty of issues. It is hard to talk about taxing this, but consider that the NHS will be short by 6 billion in the near future is at the heart of the issue. Consider that from your pay check, the government takes an additional £2 a week. Now consider the working population of 31 million people meaning that we have an optional 62 million pounds at our disposal, money that is destined exclusively for the NHS. Now, do not think for a moment that this will be temporary. There is the realistic consideration that this will be for all time, giving us two groups of people, those entitled to full health care and those with the minimum package. Now, retired people would get full health care on principle that they paid their dues a long time ago. There is every chance that people will not feel happy regarding this solution, but what options are left. The irresponsible ones seem to think that it will fit in the budget, especially those who haven’t been able to keep one since 1997. In this solution I feel decently comfortable with the solution that is consulted on by Liberal Democrat health spokesperson Norman Lamb. For one, I have seen this work in the Netherlands. In addition his version of “introduction of a NHS specific income tax, which would ring fence a possible one pence per pound earned for the NHS budget” sounds better than my £2 a week on small incomes. On the other hand, if we consider the minimum income of £286.54 per week, my amount sounded a little better, but we cannot deny the minimum £2.86 a week could solve nearly all options over time. It gets even better when we see that the average is £403.36 per week, so we are looking at a possible £120 million per week. I do believe that there should be an upper limit, yet where that ends is something that cannot be answered at this time. What is important is to seriously start taking up the ideas out there and see which one could lead to pressure release on the NHS, because at this point, every day not acted is another nail in the coffin that will be used soon enough to bury a past NHS era.

 

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The Syrian Fuck Up

There are a few things playing, for one the Bremain group is trying to push again in some way to scare people and set uncertainty all over the place. To be quite honest, at what point are such people regarded as traitors? I know the term is much to harsh, yet the fact is that the vote has been passed, there is a direction and those people are actively trying to mislead left right and centre, like the roaches of the old ways of profit, profit for the few! How come that side is not placed into the limelight? The second issue is seen in NY and a few other places where bombs are exploding. We can speculate in several ways, but that is not my way and until solid intelligence is seen, only then can we form a view. The most likely being that the US is now seeing the direct consequence from lone wolf attacks. There is no likely answer immediately, it will take time, yet the numbers are on terrorism. Confirmation is outstanding for now, but the most likely scenario. We will see later, no matter what the answer is, for the US their issues have now become a lot more complex. It is my personal view that I still believe that Edward Snowden is to some extent a joke at best and a traitor at worst. By illuminating actual parts of projects like PRISM, the lone wolves are now taking other measures and what might have been prevented will now only be prevented after many casualties, so feel free to send him a card with the text “شكرا لمساعدتك” (source: Google Translate).

Where we are actually going is Syria. You see, there has been an issue for a long time, we can go with the idea that people have been lucky for too long and there is the idea that a truce was never an option in Syria. Yet when we read ‘Syria ceasefire on brink of collapse after raids on Aleppo, Syrian troops’ (at http://www.abc.net.au/news/2016-09-19/syria-ceasefire-teeters-after-raids-on-aleppo/7856670). You see, my view comes from the initial issue I had when President Obama claimed ‘No boots on the ground in Syria‘ (at http://www.usatoday.com/story/news/politics/onpolitics/2015/10/30/16-times-obama-said-there-would-no-boots-ground-syria/74869884/), shows that this statements goes back as far as ‘meeting with Baltic State leaders, August 30th, 2013‘. Here we see the quote “In no event are we considering any kind of military action that would involve boots on the ground that would involve a long-term campaign. But we are looking at the possibility of a limited, narrow act that would help make sure that not only Syria, but others around the world, understand that the international community cares about maintaining this chemical weapons ban and norm. So again, I repeat, we’re not considering any open-ended commitment. We’re not considering any boots-on-the-ground approach“. You see, my issue is that any air force strike needs quality intelligence. You see, as I personally see it, the Air force is meant to be force in support of the Army! That’s how it is supposed to be! This is not negativity, because the Air force is its own power in the sky, but when it is required to go after ground forces, it needs eyes on the ground, which implies boots on the ground. It is that simple. Of course they can try to rely on the INTEL that they get from third parties, but that tends to lead to wrong tagging, inaccurate intelligence and not to mention the wrong coordinates get to be transmitted. I reckon that this latest issue could be either one of those failures. And when we get to see this “Russia said the situation in Aleppo city was “especially tense” on Sunday, blaming the instability on rebels.” The amount of shelling by rebel groups against positions of the Syrian Government troops and of residential areas is increasing,” Defence Ministry spokesman Igor Konashenkov said“, so what ceasefire? If a ceasefire is one-sided, there is no ceasefire. It seems to me that the issues shown on the news is that there is inaccuracies on all sides, not just the military parts. That can be construed from the quote “Also on Sunday, a senior adviser to President Bashar al-Assad said Damascus believes Saturday’s strike that killed the Syrian soldiers was “intentional”.” None of the facts on the ground show that what happened was a mistake or a coincidence,” Buthaina Shaaban said.” This could be the case on one side, if there was no ceasefire. So what is the case? Al Jazeera gives us ‘Ceasefire terms pose major risks for Syrian rebels‘ (at http://www.aljazeera.com/indepth/opinion/2016/09/ceasefire-terms-pose-major-risks-syrian-rebels-160915092126740.html), there we see the agreement painted as a one-sided solution for the Syrian government. Sharif Nashashibi writes in this article “This is a clear indication that, to him, such ceasefires are stepping stones to achieving that aim, not to a negotiated political solution. Indeed, pro-Assad forces continue to besiege rebel-held areas during the current ceasefire“, so from all this we can speculate that that fingers can be pointed on more than one issue. When we look at the BBC (at http://www.bbc.com/news/world-middle-east-37398721) we see “The US said its planes had halted the attack in Deir al-Zour when informed of the Syrian presence. A spokesman for the US administration expressed “regret” for the “unintentional loss of life”.“, as I remember it, a meeting at the United Nations Security Council under these conditions tends to be not too boring, so my advice to the Honourable Matthew Rycroft and the Honourable Gerard van Bohemen would be to bring tea and cucumber sandwiches to the next meeting, it should be fun to watch the US and Russian incriminate back and forth!

Now, I am not going to give you the goods on those two, the upcoming cold war will be a fun job soon enough. What is essential is to realise that the Air force could possibly have acted on incorrect, inaccurate or incomplete data soon enough. This is however an issue on more than one level. If you recall the initial chemical attacks, the US was unable to give clear evidence on who did what, meaning that either the satellite lag is too great or lacking too much details. You see, this is not TV, this is not an episode of NCIS where we see that the satellite could be used to watch a topless girl sucking the sunshine. This is real life and even as we know that it can give clear mechanical movements, troop movements, especially in an urban environment like Aleppo could be an issue to some extent, this is corroborated in this event. There will be conspiracy minds giving the notion that the US is trying to win by striking Assad forces ‘accidently’, a scenario that is not impossible, but likely a lot more improbable. Without clear deniability President Obama would not got near this issue now, so close to the election with the possibility of wrecking the election chances of the Democratic Party. In addition, with minus 18 trillion and no exit strategy there, increasing actions and requirements in Syria is one part he cannot afford in any way shape or form. That leads back to the attacks on the US, if there is any possibility that this is indeed a lone wolf wave, the US will have dire need for many more resources soon. No matter how it looks in the news and how it is played. Syria has been an issue for too long and as politicians and ambassadors seem to try and find a solution that will make everyone winners, I have to look back at 1939 when the UK decided that Hitler had to be stopped. It would take 2 years and a large sacrifice of part of the US Navy until the US took that stance openly. The issue is that too many politicians are taking the Charlie Brown approach (Walk softly and carry a Beagle). I think that with so many political fires stating that you are the fireman and you are here to chop away flammable constructs is not the worst position to take. In all this there is a genuine issue of missing trust. The BBC stated “Russia’s defence ministry earlier said that if the US air strikes did turn out to be an error, it would be because of Washington’s refusal to co-ordinate military action with Moscow“, it is not that Russia has any level of record in creating trust. The Ukraine and the Crimea region both have visible scars regarding that issue, there is of course the MH-117 so I reckon that Sergey Shoygu should review his options and find a third solution all parties can work with. The simple truth is that during these election the US side (for now) will be flaccid and useless unless a clear and distinct order is given by the Obama administration. Russia might gain trust all over the field if an actual solution for Syrian battle intelligence is found.

The worst issue in all this is that this is a serious fuck up, because the intelligence as given, is now sitting on the premise of two sides. From the initial part we can go with the two possibly oversimplified sides. US Air force was either unable or unwilling to see the intel. This path is taken because it is a simple truth, when we cut away the sides these two give rise to the actions. If actions were taken whilst unable to see, they would be rash actions, showing that boots on the ground were essential to recon data. If they were unwilling to see the Intel, it becomes a very different discussion, one with large implications on the US military actions. This path is taken to show you that for the most the path was not that complex. The only complexity is the accountability of actions. Sometimes, especially in armed conflict the issue tends to remain simple, or better stated ‘lacking complexity’. So why was it a ‘fuck up’? Again, in my personal view, and standing aside human error, the air force relies on levels of quality intelligence. Whenever we add just one level of impurity, we see that actions become a risk or rash to say the least, the fact that there was no supporting recon team means that someone let US pilots enter a blind stage where identification is hard at best. That is not the fault of the pilot or his commander. In this arena where uniforms are very much alike, telling one party from another becomes nearly impossible. This explains why ‘no boots on the ground’ was close to idiotic from day zero. This would always happen and it is a near miracle that it did not happen more often. One could argue that the entire mission as set out as it was doomed to fail from the very beginning, which now makes us wonder if the current administration wanted a clear victory to begin with. If not, we have ample evidence that this American administrations wasted billions on posturing, which sounds odd too.

In the end, the reality around this will take years to clarify and even then messages, mails and documents will have been ‘accidently’ destroyed or classified for 2 generations at least. In the end, for the most it is easy to agree that the Syrian events were a fuck up, but to what extent and until which person and function (read: who’s desk) is a question not easily (if ever) answered.

 

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The Taxing Delicious

Taxing delicious is a new sweet tasting Apple, even sweeter than the golden Delicious, and it is to be regarded as healthy for body, mind and government. Yes, in this case it is not a new Irish Cider (which would be a nice idea too), this is about a company getting a bill. You see, the funny part of it was that if there had been no EU, Apple would have been 13 billion wealthier. How doesn’t that beat the odds?

These are some of the thoughts rising within me again as I read ‘Apple tax ruling must be overturned, says US business group‘ (at https://www.theguardian.com/business/2016/sep/16/apple-tax-ruling-must-be-overturned-says-us-business-group).

As I see it, if it is such an issue, why not do an appeal? You see, this entire issue is as convoluted as it is ever likely to get. When I see ‘Ireland Doesn’t Want Apple’s Back Taxes, but the Irish Aren’t So Sure‘ in the New York Times (at http://www.nytimes.com/2016/09/12/business/international/ireland-doesnt-want-apples-back-taxes-but-the-irish-arent-so-sure.html), my initial response to Enda Kenny would be “Are you out of your bloody mind?” Now, let’s be partially fair. There is a method to the governments madness, yet even as giving in to big business might seem appealing, but the US is changing its taxation parameters (as well as tax accountability) and after the elections there is no way to tell how the US governments hats will be pointing, so getting what you can now is not the worst idea. In addition, when Apple et al will make the jump away and to other places, they will leave you with buildings that remain empty and will not have been paid off, so you will have a billion in real estate, whilst not having any return on investment, just empty buildings wasting away. That situation is not as unimaginative or as surreal as you might think. The idea that a government is appealing against a tax bill on behalf of a Forbes 500 company is entertaining, upsetting and obscene all at the same time, but that is sometimes how the cookie crumbles.

What is interesting in all this is how the EU courts will act, you see, if they give in now, it should be regarded as the utter uselessness of that court to begin with. It gives weight that not being part of that very expensive club is indeed the way to go, which will now give weight that Brexit was not a bad move and it will in addition fuel Frexit too. All that over a mere 13 billion invoice. Less than 5% of the costs of Greece, which fuelled Brexit to begin with. This is at the heart of the matter of what the Americans just cannot comprehend. They just received the massive blowback on the lesson that you cannot win every fight and that Economic Status Quo is an illusion that will collapse upon those believing in it.

So as we see the idiotic roundtable threaten those European leaders “In an open letter to the leaders of the 28 European Union countries, the Business Roundtable group defended Apple over its tax dispute with the European commission” and “US businesses have warned European leaders they risk a “grievous self-inflicted wound” unless they overturn Brussels’ demand that Apple pay the Irish government €13bn (£11.4bn)“, I just wonder if they even considered the stupidity of their actions. On the other hand, should those leaders cave, how stupid are the European elected officials to begin with? So as we wonder whether Randall L. Stephenson has looked into the long term issues of his act, when we see that these actions drive Frexit and possibly even Italy’s act on a referendum (although the major influences would be Brexit and Frexit), will Randall respond with a ‘this is much more complex and should not have been pushed by our, what we regard to be a righteous act‘, or will we see a spokesperson state ‘Our Chairman is currently unavailable and is taking his personal time teaching the Youth how to do a proper sheepshank‘? I will let you decide, but consider that tax accountability has been an issue for over a decade and now we finally see an actual result against a large corporation we see people backing down? Perhaps they thought it would never get that far? Just like Brexit was never going to be a reality!

Yet the Irish Times did not remain quiet and less than 24 hours ago reported (at http://www.irishtimes.com/business/technology/apple-fined-in-japan-for-under-reporting-earnings-sent-to-ireland-1.2793469), ‘Apple fined in Japan for under-reporting earnings sent to Ireland‘. So when we read “The Tokyo Regional Taxation Bureau determined that the unit, which sends part of its profits earned from fees paid by subscribers in Japan to another Apple unit in Ireland to pay for software licensing, had not been paying a withholding tax on those earnings in Japan, according to broadcaster NHK“, I just wonder who the Tax Auditor was here.

Now I am not out to make Apple the bad guy, even though they screwed me over twice! What is important is that through all the presentations and all the boasting and ego based actions, there are now 4 groups in play all trying to get Brussels to back down on a legal verdict. We need to wait the appeal on this, yet should this remain and if the US makes noise we will have clear evidence that the EU is no longer something with validity, even stronger, these events are clear signals that the TTIP is an even worse idea than initially thought of in opposition. The one sidedness aside, the fact that American business has basically become the corporate ‘bully’, we need to reassess the situation and remain clear on where our priorities are. I personally remain with the belief as I always have that the Commonwealth nations need to stick together. In these times we now see the Democratic Party under leadership of President Obama do the following “The Obama administration on Thursday took action to limit the use of foreign tax credits by American multinational companies to reduce their U.S. tax bills, a move that followed an EU order that Apple pay back taxes to Ireland“, which I think is not a bad idea. You see, Apple et al might claim how they are so investing everywhere, but that is only done (as I personally see it) to avoid paying tax in America. It is one of the massive reasons why America is so deep in debt (apart from their impossibility to manage a budget) and something has to give. If those tax dollars are used to lower that debt then I would state: “Barack, you legend you, well done!“, because an America with low debt (read: no debt), would be again the superpower it once was and currently pretends to be.

In the end, nations that have a minimal debt, these nations get to decide for themselves, not having their actions overruled by financial institutions or Large Corporation, or by Randall L. Stephenson for that matter. Yes, we can see that those moves will have impact all over Europe and not in a nice way, but that is part of the game. You cannot have it both ways that was never a reality to begin with. Now they only need to fix the holes that Mario Draghi has in his hands and we are possibly perhaps on route to get something sorted.

Yet there is one part we need to get back to and that is the verdict. You see, what is in play here is the statement “an agreement allowing Apple to pay a maximum tax rate of just 1%. In 2014, the tech firm paid tax at 0.005%. The usual rate of corporation tax in Ireland is 12.5%“, this implies that Apple didn’t just get preferential treatment, all the other players were discriminated against. When we see the parts we had already known for a long time, the fact that “Ireland’s tax arrangements with Apple between 1991 and 2015 had allowed the US company to attribute sales to a “head office” that only existed on paper and could not have generated such profits“, which was a given and the result we saw on a global scale “Apple avoided tax on almost all the profit generated from its multibillion-euro sales of iPhones and other products across the EU’s single market. It booked the profits in Ireland rather than the country in which the product was sold“, gives way that a single market is perhaps not the best solution for all but one nation and in addition to this we must realise that the solution I mentioned 5 years ago to set the tax laws that taxation should be set into the nation of the buying consumers physical location could have avoided this and many other issues. A simple taxation change that made all the difference, yet it seems that no one in legislation in those nations as well as those political players ever considered changing that simple law that could have made all the difference.

You see, as the Guardian by-line offers, this case could have another escalation soon enough “Charlie Harrington, 53, a paramedic in Cork, expressed frustration that the Irish government penalized small taxpayers but seemed ready to protect Apple“, which is exactly how millions feel in both France and Italy. If this tax case caves and Apple ends up not being due this invoice, the jump to anti-EU sentiments will go up massively and very fast so. At that point President Obama will only have himself to thank for the mess he started to create when he went 180 degrees on the corporate tax issues discussed in the ‘The Hague Summit of 2013’. That was the first step that could have avoided a few things, this case being one of them.

Cause and Effect

The question becomes ‘What will happen now?’ This is something not easily answered. At present Apple has a few other issues knocking at its door and the iPhone 7 is one of them. The population at large is less money blessed, so paying $1295 for a new phone that according to Forbes is “Purchasing the iPhone 7 this morning from my local Apple Store I found a device that is remarkably similar to last year’s iPhone 6S and the iPhone 6 from 2014. The external design cues remain, the chips inside are faster, and iOS 10 is more polished but is fundamentally the same operating system. Nothing ‘feels’ news even though the package is professional and projects a revolution that is hard to find“, this is at the heart of the matter. Trying to create waves by limiting the system, whilst overall the system is still the same is an issue and at nearly $1300 a very expensive one. That whilst Android competitors are coming into the field with comparable devices, including a headphone jack at 50%-60% of the price of the iPhone 7 and the world is starting to consider the non-IOS alternative. What Apple should fear is not just the market they are losing, the dangers that people could, in regard to the tax pressures they have and the pressure that Apple seems to be able to avoid, is one that could make them feel frustrated and vindictive. The idea that a person could think ‘If the need not pay taxation, they do not need my business either is not that far a stretch‘. People are starting to see the ethical imbalance that large corporations have impressed upon nations and in Europe where the quality of life is not that great at present, seeking the much cheaper alternative that Huawei and LG are offering is one worth considering. That could bring considerable consequences for Apple soon enough. Now I am not stating that the iPhone 7 will be a flop, but for Apple in this stage, should they lose even as little as a 2% market share, the consequence for apple will be intense to state the least. In addition, the fact that the iPad has remained a success for so long could equally be the next problem child for Apple. In that regard releasing the iPad Pro was a really good idea, yet the tablet contenders are starting to realise what it takes to be a contender and if that knowledge is applied properly, there too non-IOS devices (read: android) could start to make a killing and as such undermine that market Apple has at present. The origin is not the device makers, but Google. As Google has been pushing ‘the year of mobile’ for two years, the shift of usage is also growing. There is a growing visibility that at times the mobile screen does not cut it and it gives more and more opportunity to both Phablet and Tablet. These are all examples showing quite clearly that there is no status quo to rely on and the temporary nature of devices shows that Apple needs to really push forward in an innovative way, preferably before the makers of tablets realise that an affordable 128 GB version of an Android tablet is every bit as appealing as the iPad Pro, especially when the Android version could be a lot less than the IOS edition. With Android having its own set of quality games, Apple has more to lose than they are willing to admit to and time is slowly running out for their streak of ignorance to continue. However, it is important to note that Apple has been pretty super innovative with the iPad pro, so there is still a gap to overcome for the competitors. In that regard it is equally interesting that the Android device market have ignored that side of the consumer’s need (read: desire). In all this, it was about taxation and not on markets. Yet one is linked to the other, mainly because if there is no market there is in equal measure no taxable revenue, which gets us to the final part. You see, I have written about these issues before in one form or another and now we see that the Wall Street Journal is finally waking up to this (at http://www.wsj.com/articles/lew-is-right-on-eu-tax-grab-but-lacks-credibility-1473962171), when we read “The Obama administration has had 92 months to tackle corporate tax reform. Now that Europe is making a grab for taxes on profits held by U.S. companies overseas, President Obama is ready to use his last few months in office to address tax issues that were ignored or made worse under his watch“, my response is that neither was done, as stated in earlier blogs in April 2016, when I wrote ‘Ignoranus Totalicus‘ (at https://lawlordtobe.com/2016/04/24/ignoranus-totalicus), he refused to act (as voiced by “Senior officials in Washington have made it known“), so the non-actions are now back firing as event are now escalated. Another iteration of status quo.

What now?

This now all related to the issue at hand. IT corporations decided to maximise their profit by a consumer iterative annual approach of products. The IT market in the US nearly collapsed as it allowed for what was once regarded as a Taiwan Clone (a cheap alternative) to a quality A-brand to catch up. This is the problem with iterative thinking, when you are not in a niche market like Northrop Grumman (who at one stage actually there software patches ‘Iteration version’ I believe), you allow the market to catch up with you. ASUS caught up so and soon thereafter surpassed the original market owners. This lesson was not learned and the Telecom market decided that the profit was good in this way. So, please feel free to correct me. What happened to Ericsson and Nokia? Apple came and overwhelmed everyone and instead of truly remaining innovative, they started to largely iterate their device and called it innovation, now that LG, Samsung and Huawei have caught on and pretty much caught up, they are now offering equal, if not better options at lower prices. So how long will it take Apple to learn that status quo is merely an illusion? I reckon will see that revelation close after Christmas, after the annual sales are gone (and they will be improbable but not impossible a bit disappointing this year).

I reckon we will know in about 15-19 weeks!

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Did UKIP get it right?

That is a question that is slowly growing within the minds of Britons and non-Britons alike. Some will be in denial over it all, some will ignore their inner voice and some will ponder it. You see, once the banter and the mudslinging stops and people are sitting down thinking over a year in political waves, we are slowly getting the aftermath news and suddenly things are a lot less gloomy. Bloomberg gives us “There’s dwindling talk of a recession caused by the vote the leave the European Union, and British politicians are wondering if a “hard Brexit” option –rapid withdrawal from Europe without a new trade agreement – might be feasible. The answer is no. Such views rest upon bad economic reasoning and the cost of Brexit remains high, albeit mostly invisible for the time being“, is part of the news. You see, the scaremongers are now out of the view and the negative impacts, the ones we knew about are showing to be less negative than the scaremongers proclaimed. I agree and always did agree that the cost would be high. Mark Carney, Governor of the Bank of England had stated it, and in addition stated that there were elements that could not be forecasted. Which is also a truth. They are the invisible costs that will come and come again. The issue in my mind has always been, will it in the end be worth it (are the costs not unaffordable high) and I leaned more and more towards the Yes side!

You see, one of the main reasons for leaning towards Brexit was Mario Draghi. The trillion plus stimulus plans he had were too unfounded. Japan and the US are showing that there had been no clear increase whilst we hear opposite claims. The issue is actually brought to light by Bloomberg last week (at http://www.bloomberg.com/news/videos/2016-09-08/ecb-s-mario-draghi-downplays-more-stimulus), where we hear at 00:39 that there is an impact on the markets, but no real impact on the economy, which was my issue from the start. Politicians casually mixing both up in their speeches were playing, as I see it a flim-flam artist dictionary game, trying to make us think it is one and the same, yet they all know that it is not. So no real impact yet will over a trillion deeper in debt, only those on the financial markets, only some of them got a big payday out of all of it, the rest just has to assist in paying off the invoice. It is one of the pillars UKIP had!

Now we see even more issues, especially when we see additional issues in City A.M. (at http://www.cityam.com/249335/christine-lagarde-and-mario-draghi-call-politicians-do-more), with the quote “Christine Lagarde, head of the International Monetary Fund (IMF) and Mario Draghi, president of the European Central Bank (ECB) said governments and institutions needed to make sure their policies did not leave the poorest members of society behind, and called for structural reforms to help share the spoils of economic growth“, the failure of the European Community laid bare! You see, the people on EEC incomes have been meeting and not getting anywhere for almost 15 years now! The fact that tax laws and Corporate laws required revision even before 2004 as a requirement and after 2004 as a given is shown that none of this has been adequately done. The fact that the US played its cards in the Summit in the Netherlands in 2013, we all knew how that ended, so as we see that some are now crying cockroach, whilst littering food all over the floor only have themselves to thank for this situation. This all reflects back on the initial issue UKIP gave, ‘let’s make Britain about the British’. This is not racism, this is nationalism (read: nationalistic pride). An issue that neither Christine Lagarde nor Mario Draghi could resolve as they have been setting a neutral pose in aid of large corporations for far too long.

The next issue is the economic plan B that is now all over the news. The powerful monetary tool (TLTRO) that at 1:37 comes with the quote “that nobody has really fully understood or analysed“, and that is the plan B they are now grasping for!

TLTRO?

It is not a cereal or breakfast solution. It is a Targeted Long-Term Refinancing Operation. The ECB states “provide financing to credit institutions for periods of up to four years. They offer long-term funding at attractive conditions to banks in order to further ease private sector credit conditions and stimulate bank lending to the real economy“, that sounds nice on paper, but if we know that the impact is not understood, has never been analysed to the effect it is, this all whilst we know that taxation laws are failing and corporate laws are not up to scrap, the ECB quote could be translated to “provide financing to credit institutions for periods of up to four years. They offer a refinanced the current outstanding debts to banks, guaranteeing large bonuses by resetting bad debts and revitalising the conditions of what were supposed to be written off debts, giving a false incentive to a dangerous presented economy at present“, you see, I am almost stating the same whilst the intent completely changes, the markets are now getting a boost via the other side. This is a reality we could face!

You see, the view is given with “All the new operations will have a four-year maturity, with the possibility of repayment after two years” (at https://www.ecb.europa.eu/press/pr/date/2016/html/pr160310_1.en.html), yet like the US, Greece and Japan, it is almost a given (speculation from my side) that these maturities will be paid with new debts. When we see the quote “Counterparties will be able to repay the amounts borrowed under TLTRO II at a quarterly frequency starting two years from the settlement of each operation. Counterparties will not be subject to mandatory early repayments” gives way to the thought that it is entirely possible that when the debts mature, they could be replaced be a new debt. Giving weight to the dangers. The fact that the option ‘not subject to early repayments’ is clearly included gives ample weight to the solution, whilst not preventing additional debts from this rephrased stimulus. In the end, the economy will not prosper, the rise of the debt will. Whilst under the debts the UK already is, these arrangements are as I see it too dangerous, all this as the increase of debts only give rise and power to non-governmental institutions to grow their influence via corporations over nations. One of the better players (Natixis), had this quote “Natixis Asset Management ranks among the leading European asset managers with €328.6 billion in assets under management” (source at present intentionally omitted), with the TLTRO in play, depending on the rules of the game (which were not available to me at present), it is entirely possible that once really in play, banks can indirectly refinance risky debts in additional loans via the applicant and as such get themselves a boost. It could potentially allow Natixis to grow its asset management part up to 20%. The ECB states (at https://www.ecb.europa.eu/mopo/implement/omo/tltro/html/index.en.html) “The TLTROs are targeted operations, as the amount that banks can borrow is linked to their loans to non-financial corporations and households“, so basically companies in hardship can get relief, whilst the banks will still get their cut (aka administration and processing fee). Consider that Wealth Management is many things and Estate planning is one, now consider that Natixis has Credit and counterparty risks amounting in excess to 295 billion euro’s. Now there is a Draghi solution, one that no one seems to have ‘analysed’ that allows for solutions to non-financial corporations. Natixis is that, but their clients are not, and they can apply for the shifted funds, offsetting their loans, paying of the loans towards Natixis, who now have a massive amount of freed up cash that they can now pour into all kinds of solutions and endeavours. So do you still think that my view of 20% is oversimplified? And in 4 years? Well at that point, when things go south, Natixis and parties alike can jump in and possibly help out, ‘but at a price’ (which is fair enough).

This now reflects back to UKIP and Brexit!

The Guardian had an opinion piece (at https://www.theguardian.com/commentisfree/2014/sep/14/ttip-deal-british-sovereignty-cameron-ukip-treaty), that gives us the following, remember this is September 2014! “If you are worried about the power of corporations over our democracy, be very afraid: ISDS in effect grants multinationals the same legal position as a nation-state itself, and allows them to sue sovereign governments in so-called arbitration tribunals on the grounds that their profits are threatened by government policies. Is this scaremongering, as TTIP supporters claim?” So far there have been many voices who seem to be over the moon that the TTIP is now a failure and that the issues within the EU would have been far more reaching that many players were willing to admit to before the signing. Politico.eu reported “U.S. diplomats are sketching out a last-ditch plan to salvage core sections of the EU’s moribund trade deal with Washington“, that with the added “U.S. and Italian officials are now weighing the option of a “Step 1” deal to lock in elements that can be finalized by December, possibly including joint testing regimes and mutually agreed upon standards for cars, pharmaceuticals and medical devices“. It is clear that the US want to lock in Pharmaceuticals and cars, yet how is such a niche nothing more than a path trying to ditch the title ‘total loser government’ regarding the current administration. In addition “The idea has sparked immediate scepticism in the European Commission and in some EU member countries, which argue that any form of a downgraded deal will be very hard to sell politically, particularly after French Trade Minister Matthias Fekl and German Economy Minister Sigmar Gabriel turned hostile on the negotiations” gives way that BMW, Mercedes, Bayer Pharmaceuticals, Peugeot, Citroen and Sanofi are none too pleased with such a one sided piece of paper. The idea that such set benefits would be allotted at this point gives even more weight to some of the UKIP statements in the past.

If 2 out of the many projection come true, you are not suddenly a better prognosticator, mainly because that title is reserved for the likes of Punxsutawney Phil, Queen Charlotte and Shubenacadie Sam. Let’s face it, it is the title worthy of a groundhog! But some of these steps were clearly seen, because this is where everything was headed, the more forward you look, the easier the prediction could come true is not wrong, but only if you are travelling on a straight road. A road that corporate greed depends on I might say!

In my view, there is not enough to state that UKIP got it right, yet there are also enough facts and questions in play that UKIP did not get it wrong. We might listen those who keep on shouting that Brexit was wrong and see them as the people trying to reinvent the vote, but overall people are starting to realise that the US (read Wall Street) has been trying to give people a bad deal to benefit their own greed. The fact that this is going on at this very minute is equally a worry. This is on both sides of the isle, yet we can understand that Labour needs to clean house and they have decided on the method of accidentally leaking names. How will that solve anything? If Labour was on the ball, than they would steering towards real economic improvements, not bickering minors trying to decide who should be the number two, and soon thereafter remove the number one (read: allegedly attempt to). Actions that are totally counterproductive as the Conservatives are governing until the next general elections. It seems like such a waste of energy to me.

Now we see a new escalation. It seems (at http://www.ibtimes.co.uk/jean-claude-juncker-proposes-new-european-military-hq-worj-towards-eu-army-1581391). So the quote “The president of the European Commission Jean-Claude Juncker has called for a European Union military headquarters to work towards an EU-controlled army. Juncker made the proposals during his State of the Union address to MEPs in Strasbourg on Wednesday (14 September)“, which automatically makes me wonder how this correlates with Nazi Germany as this was how they resolves their bad economic times. It is a harsh history lesson to learn, but in that I am actually less afraid for a ‘new’ Nazi Europe. My issue is that many nations have their Cyber plan not in hand and any actions here give rise to the dangers that this would open up data for the Chinese Cyber groups to learn a lot more than they bargained for. You see, no matter how much denial we see, the facts are simple, Ren Zhengfei is the Huawei CEO and a former officer for the PLA. Now this does not mean that he is now still committed to the PLA, yet Huawei does business with the Chinese government and as such, they have all the specs and as such, they have all the weaknesses  of these devices too, meaning that governments all over Europe are in a possible place of Cyber Scrutiny. This does not mean that I am willing to just blindly accept the NSA report, but ties like that, when you are on these levels talking to the ruling members of Chinese government, you need to be networking on a massive scale and if both the Chinese military and Chinese Intelligence (MSS) gives you the thumbs up, you have been playing the game they want you to play, plain and simple. By the way, this is not a rant, or a side step into the matter, this is a direct factual response. Nigel Farage addressed the EU on an EU Army opposing it on valid points, and he got a few more hands clapping than his opponents are comfortable with. Now this was about opposition of the EU army as a whole, but underneath is the need for any military organisation to be secure and have systems in place, systems that could be compromised. In this Huawei could validly give the same argument that all Cisco Systems are compromised by the CIA and NSA. As we cannot prove either side, or perhaps even both sides, how to proceed? Both sides would be fair enough and it only makes a case strong enough to not proceed with any EU Army, which is no solution to any existing threat, will cost massive amounts of money (and that just the initial infrastructure) and with the current upcoming changes to the EC as a whole. Especially as Marine Le Pen has vowed to hold the French referendum if she is elected, this whilst several European magazines are now stating that France can no longer avoid Frexit (at https://www.letemps.ch/economie/2016/09/12/france-ne-pourra-eviter-frexit), which I stated was a growing realistic danger if Brexit would commence, in addition, Italy is seeding its own departure later this year, but no given certainty exists at present.

All these parts I gave visibility to almost 2 years ago, the press still largely in denial and additional players are now coming out to (as I personally see it) fill their pockets as fast as possible because when this comes to town and the referendums do fall, certain people will have to give account of their actions. The fact will remain that the Credit Card that Mario Draghi used will be spread over several nations, most of them with no option to get into deeper debt. So they have this to look forward to. In Italy there seems to be a plus side, as the larger players are now looking towards the option of as referendum, the act as such seems to be taking the wind out of the sails of Matteo Salvini, head of the far-right Lega Nord, which is regarded as a relief in many European nations. They seem to regard Matteo Salvini the same way that they regard the French Newspaper Minute, too far to the right and not really that readable. I cannot confirm that (as my French does not surpass the ability to read a menu), but I understand the sentiment as there have been Dutch papers on the other side of the political isle receiving similar accusations.

In the end Europe is about to take economic steps with large implications, the fact that they are trying to push it through regardless of whatever consideration it required, which makes me worried on the fact that the impact on the European populations have been ignored for too long. The weird thing is that any action should have been in support of the European population and their needs, giving weight to more than one statement from the side of Nigel Farage.

I would suggest you ponder those facts before blindly moving into the Bremain field in the near future, because there are several issues that no one can answer and they come with obscenely high price tags!

 

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In light of non-brilliance

I just ended reading an article that has the hairs of the back of my neck stand up straight. I have seen my share of bungles and botches, but the article ‘Solicitor mistakenly sent girl’s address to father who murdered her‘ (at https://www.theguardian.com/uk-news/2016/sep/12/safe-house-address-of-may-shipstone-murdered-by-father-accidentally-sent-to-him) kind of takes the cake!

The subtitle ‘Case review concludes there is no evidence Yasser Alromisse located daughter’s safe house via accidental disclosures‘, in that regard I wonder what evidence and how thorough things were looked at. We all know that mistakes are made at times. Yet the level of errors, when they are nothing short of reckless endangerment to the life of a child is quite the achievement.

It’s almost like giving a 5 year old an active hedge trimmer asking it to throw it in the air and catch it again. I wonder if the sitting Judge will consider leniency whether the current to that trimmer had been switched on inadvertently. The quote “reported to police that her solicitor had inadvertently disclosed their new address to Alromisse in legal papers” seems to be part of all this. In addition we see “previous addresses or identities were inadvertently given to 46-year-old Alromisse by other bodies, including a bank and the Child Support Agency“, which is one clear reason why I do not bank online. You see, it is not just about this case specifically. The fact that I have been contacted on more than one occasion, whilst the marketeers were clearly selling me things (as marketeers do), based upon information my previous telecom provider had released to them.

Another gasser is the quote “the serious case review concluded that no one could have predicted or prevented the killing, which took place in Northiam, near Rye, East Sussex, on 11th September 2014“, in that regard, the joker in that part of the game should consider “five months earlier Lyndsey Shipstone, who had fled with her daughter to escape domestic abuse and violence“. The fact that this lady needed a safe house might be indicative of the fact that not just her, others too clearly perceived a danger to her life. You see a safe house is not just a place where you hide defected members of the FSB or MOIS, it is also where you could hide a person who prefers not to be beaten to death. #Justsaying

You see, it is not the act that is the issue. The quote “After a thorough independent review, the LSCB concluded, as did the investigating police officers, that the father planned and carried out the killing in a secretive way, using the internet and a range of covert methods to trace the family and obtain the means to carry out the murder“, so there was an online path that lead to the victims. Now, I will accept that if the mother had posted selfies with geotracking on Facebook with texts like ‘Here we now safely are‘, there is a clear case of the mother losing the plot, but that is not it, is it? Apart from legal papers that could have inadvertently contained information (which is still very wrong), it is more the issue that, as stated ‘including a bank and the Child Support Agency‘, I have to ask the question, is this an institutional failure? In addition, when I see the quote “It called for assurances from agencies that systems were in place surrounding information about vulnerable people that should not be revealed”

Which agencies and what systems? Did anyone consider not logging information on something this volatile and currently implied to be non-protective? There is one other part in the article that I find debatable. The quote “there is no evidence this information did actually allow him to track them down. In fact, it was a period of some six months after details had been disclosed to him before the mother raised concern, and in that time there is evidence the father had still been using the internet to try to trace them“.

You see if that is all true then an IT expert could have given loads of Intel on how the address was sought and how it was found. Perhaps after 2 hours of seeking an not finding anything, he might have read the legal paper stating;

Victim A, currently residing at 68 shoot her dead lane, [insert postcode] Northiam. Yes, that made it hard, did it not? And as for the time lag, how many non-law students/professionals do you know that read legal papers to the degree they should? So whilst I see the part at the end where it reads “what we want all agencies to be mindful of, is that social media and powerful internet search engines make it increasingly difficult for families fleeing violence to rely on their whereabouts remaining secret. This needs to be considered as part of safety planning and guidance given to those at risk“, there has been no mention of not entering certain data online and keeping that info off-line in a folder that is in a locked cabinet, with perhaps only a reference number. Is it me or have I oversimplified the issue?

This is what is at the centre of all this, the consideration to remain off-line. You see, when it is offline, the average person cannot accidently reveal that information, and in addition the requesting party would be required to talk to the person that has access to the paper, the person, not some code for access. It is an issue that will be evolving in the near future for many reasons. No matter what excuse Apple used (valid or otherwise), the fact that the breach was a result of vulnerabilities in Apple’s password security system, enabling persistent hackers to guess the passwords and security questions of select users. So what were these ‘persistent’ hackers? How persistent makes for how many guesses? These parts were not given, my guess is, is that it has been likely more than three times. I have seen similar issues with Skype passwords. This goes further than just quality control. It is of course part of it, but the evolution of systems shows now more than ever the need for better security control on applications and more important, on data. The idea that Child services endangered the child is more likely the stuff of nightmares for those working there, but how was it revealed? Without better insight in how things happened, there is no way to tell but the fact that the wrong person got access and accidently revealed it to the wrong person is now more likely than not.

A linked issue could be seen in the Sydney Morning Herald (at http://www.smh.com.au/digital-life/consumer-security/massively-negligent-childrens-photos-audio-recordings-released-after-toymaker-vtech-breach-20151201-glc7ps.html), where ‘children’s photos, audio recordings released after toymaker VTech breach‘. The article being useful in more than one way I might add. The quote “A breach of almost 4,854,209 parents and 6,368,509 kids’ online accounts” should scare any parent senseless. The article which was published on December 1st 2015 gives way to more parts. In one instance is the April 20th article (at http://www.smh.com.au/business/banking-and-finance/banks-fret-data-breach-law-will-stir-fear-about-digital-economy-20160419-goai8n.html), which is about the quote “Banks have warned the federal government that a proposed law requiring mandatory notification of serious data breaches risks stirring up fear about the nation’s transition towards a digital economy“, which starts the story, with mentions that there are issues with the situation as a whole. The banks make various valid cases, yet when we get to “the proposed law as being convoluted and warns it could dampen public confidence in the digital economy that the government wants to encourage“, you should consider that there are various online issues and the banks are currently losing the cyberwar, not winning it. Now, there might not be direct threat to life in this case, yet the fact that criminals are getting better at getting to your money and there is too much unclear regarding issues like the responsibility of the users regarding safeguarding passwords. There are issues all over the board and the fact that more and more applications are using shared libraries on desktop and mobile, which does not guarantee added security, far from it. One flaw is all that is needed to get multiple access to data sets. And as you might have noticed, there have been way too many flaws in IOS, Android and Windows (although I personally believe that the amount of windows flaws have grown exponential to the sum of both IOS and Android flaws. There is an additional problem, as there is a time lag between finding the flaw and fixing it. When the development teams find them it is one thing, when they act reactively because a third party had found them it becomes another matter. Now, the reality is, is that not all flaws are about personal details or data matters, but some are!

So was this mere an institutional failure through personal actions, or was it a cyber and IT issue? The issue would be easier if the report was available, but let’s take a look.

You see, The East Sussex LSCB is at http://www.eastsussexlscb.org.uk/, which looks ok, but when you take a simple deeper look (at http://www.eastsussexlscb.org.uk/index.html), we see the Parallels Plesk Panel, with the text “To log in to your Parallels Plesk Panel, visit https://www.eastsussexlscb.org.uk:8443“, now this does not give away the farm, but it raises questions, on why the page is there in the first place. Ah, but the plot thickens!

You see (at https://www.youtube.com/watch?v=LTpmZvcIZIM), there is a video on how to exploit the zero day exploit, and the video was published on 5th Sep 2014, 6 days before the murder! It shows precisely how to get into the system and how to get the information out of such a system. Now we have ourselves a ballgame, don’t we?

No matter when it was fixed, this video gives the goods to get access to the system, meaning that other children could have been and even might be in danger. So what does the report (at http://www.eastsussexlscb.org.uk/wp-content/uploads/SCR-Child-P-Overview-Report-Published-March-.16.pdf) say?

The report gives some of the goods at 3.5, where we see: “Child P’s address and important details of her mother’s circumstances were inadvertently disclosed by a number of public and private bodies during the period covered by the review, though there is no evidence that this is what enabled her father to locate her“, the intended outcome is “Agencies have in place good systems which identify information about vulnerable service users that should not be disclosed. Staff in all agencies are trained to use the agencies system and to understand the significance of this issue“, which sounds decent, but the zero day exploit their own web system has shown a flaw meaning that these systems are not to be trusted. If even one person has shared login and passwords, the security in there is pretty much null and void.

There is an important element in [100], here we see “It is also now believed that the father had accessed information about Child P and her mother from Facebook. This may have included information that the mother had a new partner and that Child P had been baptised in her local village church“, which is beyond belief! So, you need a safe house, but casually place your actions on Facebook? I am shaking my head in disbelief! Still, the point was added, yet when did these events take place? Is there any evidence that the father accessed those records? In addition, the fact that the flaws of the IT system did not make it into the report, especially in light that the video shows a step by step guide on how to get into such a system is equally a failure on the investigating body of the LSCB. I will agree that this was not the most likely intrusion, especially in light of given information on Facebook. Yet, especially in regards to items 22 and 23 on page 63 gave realisation of the fear of finding out, which places some issues with item [100] aforementioned and who placed what information exactly and on which Facebook account?

What does seem to be the case is that the death of Child P is a slightly bigger mess than either the Guardian or the BBC give vision to. I think that the failure was larger and due to the missing IT part more of an institutional failure than most realise, the fact that no clear guidance of non-social media actions might be in play as supportive evidence to that view.

As I see it, it was a preventable loss and the ‘defence’ “Although the review is clear that professionals could not have prevented this death“, is one I personally cannot agree with.

 

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In This War!

We look at the news that is now taking on a she said, she said path, whilst he said is ignored towards what another he is stating. This is not a battle of sexes (which is a nice change). No this is almost like the US Senate versus Congress (also known as the fruits and nuts department of US politics), this is British politics in the Brexit phase that is now following. People dragging their feet, people going over simple narrow-minded seeding of statements whilst throwing the custard pies in as many faces as possible. It is like watching toddlers getting off the rocking chair. In all this there are also corporate players who have been hiding behind others whilst spreading unsolicited memo’s leaving them in the open to read with a ‘top secret‘ stamp on it. It almost feels like the GCHQ soap that we saw in Cheltenham 1991 (could be 1989 or 1990).

Anyway, when we hold people to account for their statements we will get these ‘miscommunication’ issues which will waste everybody’s time and it will not get anything done. That first part is seen in the Guardian in an opinion piece by Toby Helm (at http://www.theguardian.com/politics/2016/sep/10/brexit-camp-abandons-350-million-pound-nhs-pledge). My issue started with “dropped their pre-referendum pledge of a £350m-a-week spending bonanza for the NHS“. Let’s be clear here! Nigel Farage has stated on several occasions that the 10 billion pounds (34 million a day), should not go towards the EU, it should be spend in the UK on people for the UK. In addition, he stated on Good Morning Britain that he could not guarantee that it (£350 million a week) would go to the NHS. That was months ago! Even earlier (at https://www.youtube.com/watch?v=bkr_Qjey8s8), we see Nigel Farage talking about the debate that is required around NHS. I believe he is right, in all this the debate he opened is one that the Tories and Labour aren’t stating they are slinging mud. In that part we see that Nigel was promising to put 3 billion (out of the 10 billion) towards the NHS. It was an intent to do!

He literally said ‘we could put 3 billion pounds‘ (around 5:55 into the story). Means it was not a given, just an option! In this Nigel Farage was right. Labour and Conservatives had ideas which meant borrowing more money. Also, let me remind the readers that it was Labour who stuffed up the NHS IT program costing the tax payers 11 billion pounds. It was a complete failure and large loss, one of the largest the NHS ever faced.

Now of course we can sling mud all over and as a Conservative I guarantee you that you will lose at that point. The NHS is on the verge of collapse and neither side has done anything to truly take care of business. UKIP sees it as a disgrace and so it should be, because it has been known for over 15 years that the UK is largely an aging population, meaning the pressures on the NHS will only increase, that while it is being drained. In this we also need to take a look at the TTIP and the dangers it poses. We can try to have faith in the marketing joke the EU is when we see the focal point that is useless (at http://trade.ec.europa.eu/doclib/docs/2015/january/tradoc_153010.4.7%20Pharmaceuticals.pdf). This is especially seen when we see the elements around protecting Intellectual Property:

– Companies to profit from their research and remain amongst the most competitive in the world- Patients to benefit from new medicines.
We won’t negotiate anything in TTIP which would:

– Upset this delicate balance, or
– Increase costs for EU countries

The TTIP is about profit, especially for American Pharmaceutical companies!

Places like EFPIA are not lying to you, they are just misrepresenting the needs. Because a strong TTIP is not what they state ‘How a Strong Pharmaceutical Chapter in TTIP will Benefit the EU‘, it gives massive powers to the Pharmaceutical industries, whilst stopping generic medication from getting in. And here is the crux for the NHS, to get part of their budgets to meet up with reality, there will be a massive need for generic medication. For over 2 years I have pleaded to get stronger ties with India that has a growing market of generic medical solutions. A partial solution can be found here! Now, it will not solve all, there are still patented medicinal solutions we need and they will be bought, yet the fact that pharmaceutical industries want another 20 years of exclusivity is just not proper, not realistic and not acceptable. The US should have cleaned house in that market decades ago, but they were only focused on flaccid politicians requiring Viagra. Now that the game is up they all want a little more (read: twice as much). This is not how patents are supposed to work, they never were!

Consider the following two quotes: “The EU and India are taking steps to end a trade row sparked by an EU ban of 700 Indian pharmaceutical products after New Delhi cancelled talks on a free trade accord earlier this month“, which was in August 2015 by the way! As well as “Modi personally argued that the long-stalled talks on a free trade accord should be revived, India’s turnaround puzzled the 28-nation bloc, which insisted the ban was a minor, technical issue unconnected to trade“, it was all about the product, not about trade, the issue that the EU licking the heels of Washington gives us “the delays risk leaving India isolated. While Modi is trying to double India’s global exports to $900 billion in five years, Europe’s top negotiator now spends more time on the Transatlantic Trade and Investment Partnership (TTIP) with Washington“, you see, this 900 billion market is stopping an almost 2 trillion market of US pharmacy. Even if it is not all UK, what would you rather see? The NHS spending 90 million, or 2 billion on the same amount of medication? Let’s not forget it is down for over 13 billion at present. The NHS needs this generic solution and at present having strong ties with India makes a lot more sense than the ties with the US that are bringing the UK down, all because they would not clean their own stables!

This is and remains the foundation of Brexit, so when we see the Guardian quote “Anna Soubry, the pro-Remain Tory MP and former minister for small business, said it was outrageous that the Leave campaigners had “peddled that lie” during the campaign and were now quietly abandoning it“, we need to tell Anna Soubry that she needs to stop whining like a politician and start giving out papers that clearly define on how the NHS can be stopped to collapse, because as a fellow Tory she does know that from the moment the Tories came to power in 2010, too little has been done to revive the No Holy Sanctum, so actions are required. The fact that the previous administration from 1997 onwards also made its shares of mistakes as well as waste an additional 10 billion, means that massive effort needs to go into the NHS, having to listen to a whining Anna Soubry (in this matter) is a waste of everybody’s time. I am actually not happy to phrase it this way, because Anna has had quite the political career. Not into the limelight for too much, but I always saw her as upcoming House of Lords material, mainly because she has been outspoken on more than one occasion, at times this is how we hope our Lords would be. I never minds whether a person was right or wrong, just that they would be an evolving wisdom. Those vague stating politicians (as too many are) would never be Lords material, Anna still is in my eyes. This does not mean I will agree on her, or on my party. Things need to get done and too many aren’t getting it done.

In addition, we see all these financial doomsayers who are now resetting the view of Brexit in less negative ways. It is not as bad as they thought it was. This is their view on managed bad news. Another piece of the puzzle, where too many people were trying to demand that the Status Quo remain. When spending has not had the incentive of growth and managed bad news was used to dim the impact, now we see the opposite where their doom is not happening and now they are revising the numbers upwards (at https://www.theguardian.com/business/2016/sep/09/city-banks-revise-brexit-doom-and-gloom-forecasts). Here we see the ‘bitches’ of Wall Street: Goldman Sachs, Morgan Stanley and Credit Suisse revising their numbers as the trade deficit is now falling for the UK and that gap is now optionally turning into the momentum of a better economy. So, is my view too extreme when we see the quote “Morgan Stanley initially forecast the economy going negative by 0.4% in the third quarter of 2016, but this week changed that to expectations of 0.3% growth“. This makes me state ‘How stupid or non-comprehending is your staff?‘ I would like to add personally to James P. Gorman: “You now have 7 quarters of data showing that managed bad news is never a real solution and that the Status Quo of finance is a mere illusion. So will you in the near future clean house and start being a visionary instead of remaining a facilitator?”

I know, diplomacy has never been my forte, yet as Apple is likely to lose up to a 2% market share over the coming tax year, he needs to wake up and kick the right people into gear before he has to do a negative 2 trillion dollar speech, and perhaps I might just have oversimplified the problem for both you and him!

These are only parts of the solution, but we need to tackle them one at a time. Because the intricate mess both sides of the isle is trying to make them will not solve anything. I will go one step further, I am almost driven to get one additional degree in Medicine, move to the UK and work at the NHS trying to resolve the problems! You see, one of my lifelong idols is Lord Baden-Powell. I was never a boy scout (in more than one way), but I have always taken one of his quotes to heart “Try and leave this world a little better than you found it!” It is the master of all thoughts, because it does not make you solve things, it is not my burden, just leaving it a little better, a little cleaner is all we all need to do. The simplicity is that if all 68 million Britons do just that, we could all turn the UK into the paradise it once was and can be again in almost no time at all.

The simplicity of any solution is the one step you actively take! Because when it is done you take the next step! This is what happens when we are not stopped for too long by too many managers trying to figure out WHAT to do, just to start doing it. That is the brilliance of Brexit. That step has been taken, now we take the next step and the one after it. So many politicians have been too worried about looking good that they forgot about actually doing anything good. I reckon that the inactions towards the NHS and housing are ample pieces of evidence to show that I am right, and the Mud Ladle of Blame goes to both sides of the isle.

In all this the one massive reason for me to remain towards the Brexit side is the one no one seems to discuss, or perhaps the press is being told not to dig too deep into that side. You see, one of my major issues has been and still is Mario Draghi. Bloomberg gets close with the quote “About three months ago, the Draghi-led European Central Bank started buying corporate bonds in the region for the first time. The results have been dramatic and, at times, alarming” (at https://www.bloomberg.com/gadfly/articles/2016-09-07/companies-are-getting-paid-to-be-rated-junk-in-europe). You see, the simple clarity is that you cannot use a credit card spending over a trillion thinking it will have no impact of your credit score. The quote “Investors are now literally paying European companies to borrow. Sanofi, a French drug maker, just became the first nonfinancial private company to issue debt that yields less than zero” as well as “Bonds of some investment-grade European companies now carry negative yields” are just two examples of the mess and the nightmare that will soon hit too many places. Then there is “Less clear is how investors are justifying purchases of junk-rated bonds that promise nothing and come with big risks“, which is what we saw on Cyprus and in Greece. No one is held accountable and those screaming for more money have no idea and no option to pay it back. It was never a solution! So Draghi spending a trillion plus leaving the credit card to be added to the workload of his successor is not ever a solution. Moreover, the EU nations have to come up with paying it back somehow, so leaving this collection of spenders seems much better than to play possum and ignore that credit card, because that debt comes with interest and there is not one government in the EU who doesn’t have their own national credit card maxed out, which means that our children will have to work of this debt. That is not a world I ever accepted to be in!

Now consider the last quote “Does this mean risky debt in Europe getting less risky? No. Fundamentals are, in fact, deteriorating, according to the Bank of America strategists, with investors recovering less from defaulted debt than they have in the past“, which is partially the problem and the issue I have with the USA. Wall Street is setting up a scenario that is reminiscent of the old Pyramid schemes, with the difference that they quickly want to cash in one more time and breaking free from whatever remains. It is wrong on many levels, so as there is one more round of bonds and stimulus, the previous instigators cash in and get out with as much as possible, knowing that they will survive in the next two decades whilst the ones not getting out drown and lose all. This is why the Draghi method is so dangerous and we need to get away from it Brexit was part one, although Frexit (part two) is not a guarantee, the fact that Sarkozy is now ready to set a referendum if elected should be ample warning for the US (read: Wall Street) that the status quo route is no longer acceptable and too many nations are willing to let it all fall back to nationalism if pushed, should be more than enough for Wall Street to find a ‘live with the loses solution‘. Something we all know will never happen!

So in this war there is the immediate need to stop misinformation and above all get something done, in this case fix the NHS, it should be the only issue on the agenda of both isles for the rest of the year, that whilst Brexit moves forward. It is a tall order to deliver no matter how you slice it, but whomever does will have the support of the people for a long time to come, because that aging population will still hold the majority for well over a decade.

 

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The Zuckergate Censorberg Act

Yesterday an interesting issue got to the FrontPage of the Norwegian Aftenposten (at http://www.aftenposten.no/kultur/Aftenposten-redaktor-om-snuoperasjonen–En-fornuftig-avgjorelse-av-Facebook-604237b.html) and for those who are slightly Norwegian linguistically challenged, there is an English version at https://www.theguardian.com/technology/2016/sep/08/facebook-mark-zuckerberg-napalm-girl-photo-vietnam-war.

aftenposten
It is something we have seen before. Although from a technical point of view, the editing (read: initial flag) is likely to have been done electronically, the added blame we see when we get to the quote “Egeland was subsequently suspended from Facebook. When Aftenposten reported on the suspension – using the same photograph in its article, which was then shared on the publication’s Facebook page – the newspaper received a message from Facebook asking it to “either remove or pixelize” the photograph” shows that this is an entirely different matter. This is now a censoring engine that is out of control. The specification ‘either remove or pixelize’ does not cut it, especially when it concerns a historical photo that was given a Pulitzer.

I am actually considering that there is more in play, you see, the Atlantic (at http://www.theatlantic.com/technology/archive/2016/05/facebook-isnt-fair/482610/) said it in May when it published “Facebook Doesn’t Have to Be Fair. The company has no legal obligation to be balanced—and lawmakers know it“, which is the title and subtitle and as such, the story is told and politicians like John Thune experienced how a social network can drown out whatever it wants (within reason). So when you see something is trending on Facebook, you must comprehend that it is not an algorithm, but contracted people guide its creation and as quotes in the Atlantic “routinely suppressed conservative news“. Yet this goes further than just censorship and news. As the Editor of Aftenposten raises (and others with him), Mark Zuckerberg has now become the most powerful editor in the world. He now has nothing less than a sworn duty to uphold the freedom of speech to a certain degree, especially when relying on algorithms that are unlikely to cut the mustard on its current track. It now also opposes the part the Atlantic gave us with the subtitle “The company has no legal obligation to be balanced—and lawmakers know it” showing Sheryl Sandberg in a ‘who gives a fuck‘ pose. You see, at present Facebook has over 1.7 billion active users. What is interesting is that the acts that he has been found guilty of acts that negatively impacts well over 50% of his active user base. Norway might be small, but he is learning that it packs a punch, and when we add India to the mix, the percentage of alienated people by the censoring act of Facebook goes up by a lot. So even as there is the use of blanket rules, the application is now showing to be more and more offensive to too many users and as such this level of censorship could hurt the bottom dollar that every social media site has, which are the number of users. So as Mark Zuckerberg is trying to get appeal in Asia, he needs to realise that catering to one more nation could have drastic consequences to those he think he has. Now we understand that there needs to be some level of censorship, yet the correct application of it seems to go the wrong way. Of course this could still all go south and we would have get used to log in to 顔のブック, or 脸书. Even चेहरे की किताब is not out of the question. So is that what Zuckerberg needs? I know the US is scared shitless in many ways when that happens, so perhaps overseeing a massive change into the world of censoring is now an important issue. Espen Egil Hansen said it nearly all when he stated “a troubling inability to “distinguish between child pornography and famous war photographs”, as well as an unwillingness to “allow space for good judgement”” is at the heart of the matter. In that regard, the issue of “routinely suppressing conservative news” remains the issue. When you censor 50% of your second largest user base, it is no longer just a case of free speech or freedom of expression. It becomes an optional case of discrimination, which could have even further extending consequences. Even as we sit now, there are lawsuits in play, the one from Pamela Geller, a person that only seems to be taken serious by Breitbart News is perhaps the most striking of all. Pamela (At http://www.breitbart.com/tech/2016/07/13/pamela-geller-suing-facebook/) with the quote “My page “Islamic Jew-Hatred: It’s In the Quran” was taken down from Facebook because it was “hate speech.” Hate speech? Really? The page ran the actual Quranic texts and teachings that called for hatred and incitement of violence against the Jews.” is a dangerous one. It is dangerous because it is in the same place as the Vietnam photo. The fact that this is a published religious book makes it important and the fact that the book is quoted makes it accurate. The blaze (at http://www.theblaze.com/stories/2016/01/05/an-israeli-group-created-fake-anti-israel-and-anti-palestinian-facebook-pages-guess-which-one-got-taken-down/) goes one step further and conducted an experiment. The resulting quote is “The day the complaint was filed, the page inciting against Arabs was shut down. The group received a Hebrew language message from Facebook that read, according to a translation via Shurat HaDin, “We reviewed the page you reported for containing credible threat of violence and found it violates our community standards”, the page inciting against Jews was left active.” This indicates that Facebook has a series of issues. One cannot help but wonder whether this issue is merely bias or the economic print the Muslim world has when measured against a group of 8 million Israeli’s or perhaps just the population of 16 million Jews globally. With the Aftenposten event, Facebook seems to have painted itself into a corner, and if correct several lawsuits that could soon force Facebook to have a rigorous evaluation and reorganisation of several of its internal and external departments.

Because if Content is the cornerstone of Social media, the need to keep a clear view of freedom of expression and freedom of speech becomes even more important. In a product that seeks the need for growth that should have been obviously clear.

There is however a side that is not addressed by any. You might get the idea when you see the Guardian quote “News organizations are uncomfortably reliant on Facebook to reach an online audience. According to a 2016 study by Pew Research Center, 44% of US adults get their news on Facebook. Facebook’s popularity means that its algorithms can exert enormous power over public opinion“, the fact that Facebook might soon be hiding behind the ‘algorithms‘ as we see Facebook go forward on a defence relying on their version of the DEFAMATION ACT. In this example I will use the DEFAMATION ACT 2005 (Australian Law), where we see in Article 32

32 Defence of innocent dissemination
(1) It is a defence to the publication of defamatory matter if the defendant proves that:
(a) the defendant published the matter merely in the capacity, or as an employee or agent, of a subordinate distributor, and
(b) the defendant neither knew, nor ought reasonably to have known, that the matter was defamatory, and
(c) the defendant’s lack of knowledge was not due to any negligence on the part of the defendant.

(2) For the purposes of subsection (1), a person is a “subordinate distributor” of defamatory matter if the person:

(a) was not the first or primary distributor of the matter, and
(b) was not the author or originator of the matter, and
(c) did not have any capacity to exercise editorial control over the content of the matter (or over the publication of the matter) before it was first published.

By relying on Algorithms, Facebook could now possible skate the issue, yet this can only happen if certain elements fall away, in addition, the algorithm will now become part of the case and debate muddying the waters further still.

Hanson does hit the nail on the head when it comes to the issues he raises like “geographically differentiated guidelines and rules for publication”, “distinguish[ing] between editors and other Facebook users,” and a “comprehensive review of the way you operate”. He is not wrong, yet I have to raise the following

In the first, when you decide to rely on “geographically differentiated guidelines and rules for publication”, you also include the rules of who you publish to. This is the first danger for Facebook, their granularity could fall away to some extent and Facebook advertising is all about global granularity. It is a path he would be very unwilling to skate. Open and global are his ticket to some of the largest companies. When this comes into play, smaller players like Coca Cola and Mars could soon find the beauty of moving some of their advertisements funds away from Facebook and towards Google AdWords. I am decently certain that Google will not be opposing that view any day soon.

In the second “distinguish[ing] between editors and other Facebook users” is only part of the path, you see when we start classifying the user, Facebook could start having to classify a little too much, making any distinguishing of such kind additional worries in regards to discrimination. Twitter faced that mess recently when a certain picture from one Newspaper was allowed and another one was not. That and the fact that a woman named Molly Wood (her actual name) was not allowed to use her name as her Facebook name, which is a matter for another day.

In the third the issue “comprehensive review of the way you operate” which is very much in play. The cases that Facebook has faced regarding content and privacy are merely the tip of the iceberg. We can all agree that when it is about sex crimes people tend to notice it, I am speculating for the most because of the word ‘sex’. So when I saw that there is a June reference (at http://www.mrctv.org/blog/facebook-censuring-international-stories-about-rapes-muslim-refugees), when Facebook removed a video from Ingrid Carlqvist for the Gatestone Institute, where she reports that there has been a 1,500% increase in rapes in Sweden, I was wondering why this had not found the front page of EVERY newspaper in every nations where there is free speech. The Gatestone Institute is a not-for-profit international policy think tank run by former UN Ambassador John Bolton, so not some kind of radicalised front.

In that regard is any kind of censoring even acceptable?

This case is more apt than you think when you consider the quote we see, even as I cannot give weight to the publishing site. We see “Facebook may have been incited to censor this story by a new European Union push in cooperation with Facebook, Twitter, and Google to report incidents of racism or xenophobia to the authorities for criminal prosecution” with the by-line “In order to prevent the spread of illegal hate speech, it is essential to ensure that relevant national laws transposing the Council Framework Decision on combating racism and xenophobia are fully enforced by Member States in the online as well as the in the offline environment. While the effective application of provisions criminalising hate speech is dependent on a robust system of enforcement of criminal law sanctions against the individual perpetrators of hate speech, this work must be complemented with actions geared at ensuring that illegal hate speech online is expeditiously reviewed by online intermediaries and social media platforms, upon receipt of a valid notification, in an appropriate time-frame. To be considered valid in this respect, a notification should not be insufficiently precise or inadequately substantiated“, which was followed by “No matter why Facebook decided to remove Ingrid Carlqvist’s personal page, it doesn’t lessen the fact that this is another example of their political censorship, and their desire to place political correctness over freedom of the press and freedom of expression”

Now this part has value and weight for the following reason: When we consider the earlier move by Facebook to relay on algorithms, the European Commission (at http://europa.eu/rapid/press-release_IP-16-1937_en.htm) gives us: ‘is expeditiously reviewed by online intermediaries and social media platforms, upon receipt of a valid notification, in an appropriate time-frame‘, which could imply that an algorithm will not be regarded as one of the online intermediaries, which means that the human element remains and that Facebook cannot rely on the innocent dissemination part of the Defamation Act, meaning that they could end up being in hot water in several countries soon enough.

As parting words, let Facebook take heed of the words of Steven Spielberg: “There is a fine line between censorship and good taste and moral responsibility“.

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A bit in the stream

Something alerted me towards events this morning in LinkedIn of all places. There was a reference towards an article titled ‘New Accenture boss Bob Easton throws down gauntlet to big four on digital’ (at http://www.afr.com/business/accounting/new-accenture-boss-bob-easton-lays-down-gauntlet-to-big-four-on-digital-20160829-gr3huj ).

The initial quote is “The trouble is there is a lot of people running around talking about digital“, which is true. Bob Easton is right that there is a lot of talk about digital. Yet, when we look at the definitions, I wonder how many have a true grasp of digital. Even I myself wonder when the use ‘digital’ is warranted. You see, when it is media, my photography is digital, so is my filming. Advertisement is digital as it goes through AdWords and not trough the newspapers. Here is the issue. When is something digital? Bob Easton states in the article “they are confusing the market by misunderstanding digital strategy and lacking the global capabilities of his firm“, the fact that IBM took a massive hit is not a surprise because they are confused on the best of times. They still present the 14 managers and 2 technicians approach. I cannot speak for either PricewaterhouseCoopers in this instance, or for EY, but my last encounter with Deloitte gave a much better view on them and they seem to know it (to some extent). So where does this leave Accenture?

The term “moving to aggressively compete for work in the consulting, digital and business transformation space” is only a concern if they do not meet customers’ expectations. So where should they be?

So where should you be? You see Dave Aron from Gartner (at that time) gives me: “A digital strategy is a form of strategic management and a business answer or response to a digital question, often best addressed as part of an overall business strategy“, what I liked was “Every business and public sector agency needs both an IT Strategy and a Digital Business Strategy. They must be highly aligned with each other, but they are not the same thing“, which gives part of the goods, yet when we consider his claim “All aspects of the business strategy should be informed by digital considerations“, we tend to get confused here, because different elements have the same word (read: digital), but in that the setting is not the same.

We can see it as advancements in digital technologies such as computers, data, telecommunications and Internet, which is still true, but how to go about it?

A digital media manager looks at how to get the solutions towards their ROI, which in many turns means to get it all electronically solved, whilst keeping costs to a minimum. Here we see the first failing from IBM as they are about revenue and about getting the business onto their solutions. Even in a step by step solution it is about getting one foot into the door and upsell from there. That is not a solution for the client, it is merely a solution for the sales person’s target.

And in some cases there is no digital path, but to a lot of people that does not exist so they will feign a solution. As an example I have my old dentist, he had a card system so perfect that no IT solution could bring the goods. I saw yuppies in all sizes try to sell him a solution between 1983 and 1995, one failure after another. The mere realisation that not all solutions fit and that some solutions will drive down the ROI in unacceptable ways is why several of these players will never succeed. Because what the client truly needs is never addressed. If we take the approach from Macala Wright (at http://mashable.com/2012/09/05/how-to-digital-strategy/#oc3qMBqfF8qC)

We see a decently clear path. I can quote all the steps again, but the article has them down to a nice clean size, so reading it is a recommendation.

I am downgrading it to these four steps for comfort (read: mine).

  1. Identifying the opportunities and challenges in a business where online assets can provide a solution or a difference.
  2. Identifying the unmet needs and goals of the external stakeholders that most closely align with those key business opportunities and challenges, and especially if there are threats there.
  3. Developing a vision around how the online assets will fulfil those business and external stakeholder needs, goals, opportunities, challenges and threats.
  4. Prioritizing a set of online initiatives which can deliver on this vision.

These steps also include the views Cisco had in step 3, yet it is a watered down list. I am emphasising this as the entire ‘going digital’ is larger and more complex than most realise. When I look at what can be done and what can be achieved we need to realise that this all needs the decision makers to be aligned and in that both IT and business needs must be addressed. Most people going digital seem that it is a cheaper solution towards a better ROI. Yes, it is a path towards a better ROI, which will not make it cheaper. It requires serious investments and not tinkering around with half a dozen people working from home, sending in some finished element. Whilst the Australian Financial Review gives us a chart with Revenue versus margin and adds a little hype by adding AirBnB and Uber in the new business models, we see a forgotten element. You see, these new business models come with a little hook, one was highlighted by Bell Partners, where we see “Some critics argue that Uber drivers are not subject to the same premiums for compulsory third-party (CTP) insurance as taxis, as it is harder to identify an Uber car in an accident“. Is that so? So how does this impact the passenger? Until you are in an accident you might not care, but when the hospital bills come and the Uber player does not have the coverage, you will soon learn that hospitals are very expensive.

There is a lot of truth in the article and it is well worth reading, yet the lack of threats discussed is equally unsettling. The fact that Expenses in the digital world are up and very much so with Accenture is an element, and also a threat. You see, we all understand that there are a lot more expenses coming over (nearly all tax deductable), the matter of a shifting ROI remains and until the model is used to fuel growth the benefit will not be easily seen. For this path requires a globalising mindset. If you want to remain the big cheese in Darlinghurst and that is all you want, you need to consider what sides need the digital approach and what you want to grow. This for the mere reason that costs will come in the early days and if you are ready it is not an issue, if not, your ROI went straight into the basement, good luck enjoying that view!

Depending on your market, it will be about your customers and their experience, if that is not upgraded, then why byte into the digital apple? I truly worry about the bit you do not end up with, as you would limit your position and enable your competitor overnight. This is the part that is not addressed in many places, because everyone is in a sales hat thinking bonus and saying, we can get you onto the digital path! You see, the presentation in the AFR, regarding the digital disruption framework is aptly drawn as a spear point and it points towards you! The better the comprehension and implementation, the more it becomes a weapon of offense instead of a solution to suicide. In that regard, towards the offense we see that the spear could be the stepping stone that upgrades the customer experience and as such truly grow your business, which is exactly what it is, but it is not a cheap solution or an overnight solution, it is merely a new solution to grow towards places you never grew before, so you grow the options in getting a grown customer base, which is what many want.

The only question is how correctly the path has been drawn out and here we see the elements that Bob Easton sells on. Accenture seems to know this path through and through. We have seen how IBM scuttled their knowledge and for the most, the other players (read: self-proclaimed players) are not up to scrap, but their level of failure is not clearly shown, Bob Easton points at it, but there is clear doubt if that is a given, especially in the case of Deloitte.

Finally we see the mention of government contracts, which is of course fun to read. Especially as 20 years have shown me that the bulk of government is relatively clueless on any digital path, with Defence on a whole being close to the sole exception.

In all this I find one part slightly debatable, even as the chart makes perfect sense. The quote “Digitising the experience for your customers, digitising your internal operations and the creation of the capabilities to recognise and exploit new business models” is true, yet recognising new business models is always a non-given, because that requires the altered mindset of a board of directors, which tends to focus on the golf game and less on the balls they slice, which gives weight to the debate, not the issue with the model as shown. In that for Taxi’s the model makes perfect sense, because Uber is now forcing a different mindset on the taxi corporations. Yet consider the year before Uber started, how many Taxi companies were actively looking into new business models? That list is hugely close to zero!

I say that competitors and threats, the second more than the first is driving that element, which is why even in the digital move, a SWOT analyses tends to have more decisive impact on the decisions. When we know the elements strengths, weaknesses, opportunities, and threats, we can start to look at the options we have, and they do include the two Bob Easton axis scales namely Revenue and Margin. As stated, his view is not incorrect, I personally find it a little incomplete in this instance.

And to finalise this, the problem he states is on many levels, I am not even sure if America is the largest waster of options and resources here, yet when we see politicians go with (read: Donald Trump on CBS today) “you know cyber is becoming so big today. It’s becoming something that a number of years ago, short number of years ago, wasn’t even a word. And now the cyber is so big“, in this case Donald Trump for his elections. The fact that Cyber threats have been on the FBI agenda even before October 6th 1999, stating that the damage from those threats had surpassed 7 billion in Q1 and Q2 of 1999 gives us worry that Cyber and Digital are more than words and those who are aiming to be in a seat of power have not grasped it. The entire educational system is not ready for these changes, which is not their fault. The market that Bob Easton described has grown nearly exponentially and the next generation is not aware of what is what, that whilst the current generation is not up to scrap as to what the definitions are, how they should be seen and how they apply in a real time environment and the people in charge are not getting educated either, most they get is from trade shows dying for you to buy their solution, which is not much of an education and finally the previous generation that is hoping to make it to retirement before they have to learn it all.

That is the issue as it evolves. So we are all bits in the stream, bits of what? I am not sure if anyone can tell at present, but good luck trying to figure out where you are placed and where you stand, because resolving that will place you in a much stronger position than you were in this morning.

 

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Jack’s Place

Sometimes we wonder, what the long term effect would be if a baby is dropped on its head. At least, we should wonder about that! When we see that politicians are bending over backward to get their own way after elections, we have to wonder what we should do with politicians who have been dropped on their heads. In this case, when we see Tony Blair have a go in French (amazing quality French I tell you) on how ‘We have the right to change our minds on Brexit’ (at http://www.theguardian.com/politics/video/2016/sep/01/tony-blair-we-have-the-right-to-change-our-minds-on-brexit-eu-referendum-video). He is going on ‘on how people may change their minds’. How the people decided to move house whilst they had no idea on where they were going to. In my view, the house they are in now had rot, the house had termites and the landlord was an idiot skimming its tenants. How is whatever we move to not a better place? Labour is still at it, still trying to undo the change the people in Britain moved to as political parties were flaccid, the politicians of the EC in general were incapable and bending over for the desperate need of the USA and Wall street, the people at large have lost 60%-75% of their quality of living. All because nobody showed any backbone against the greed of Wall Street.

So as the former British politician of some renown is chatting up the French in French about the dangers of Frexit (in very good French I must admit), he seems to have forgotten historic events. It comes in the form of a little cumulative tale. As such I will go to the last verse of it all as not to iterate it all in this article. A song based on the principle of Chad Gadya, published in 1590, I move to a 17th century edition which came with the approval of Nurse Truelove.

This is the horse and the hound and the horn
That belonged to the farmer sowing his corn

This is about farmer who is sowing his fields, the farmer in the UK is being presented as the one now suffering ‘UK farmers wonder who’ll get the harvest in’ (at http://www.politico.eu/article/uk-farmers-wonder-wholl-get-the-harvest-in-agriculture-migration-brexit-labor/). The letter is not in question, there is no opposition that certain changes will have certain issues that need to be dealt with. “Richard Hirst, who farms 790 acres close to Norfolk’s blustery east coast. “They provide a fantastic service and potentially that’s all going to stop.”” the quote is fair enough, yet in that one player decided to remain quiet. I will get to that person later. What is also shown and raises questions is “Hirst relies on around 200 seasonal workers, most from Romania and Bulgaria, to plant and harvest the salad crop. Polish construction workers repair farm buildings. Polish truck drivers cart produce to market. That pattern is repeated across rural England“, how come that UK people aren’t coming to the sound of the horn of labour? Is it beneath them or is it not possible to get it done for normal UK wages? I am not stating that Richard Hirst is exploiting cheap labour, I am asking how come no one in the UK is willing to do it. We know that the farmers are hurting. When large corporations with governmental pressure options is milking the milk industry. Consider the average 2 litre milk bottle at £1.90. Whilst we see at http://dairy.ahdb.org.uk/market-information/milk-prices-contracts/farmgate-prices/uk,-gb-and-ni-farmgate-prices#.V8jC4vl96Uk that farmer gets 18.14 pence per litre, down from 20.77, which means that the dairy marketing engine gets 80%. There is something not right here! We know that there are costs, yet when the main ingredient is only 20% of the price, something is not right. I suggest that we increase milk minimum to £2.20 per 2 litre, meaning that a 1 litre bottle can only cost £1.10 and the increase is shipped 100% to the farmers. How long until the dairy industry tries to get their fingers on part of that increase? I am willing to bet that they make their first attempt before the ink dries on this agreement if it ever becomes a reality. Will it hurt some? A little, I cannot deny that some are in worst places than me, yet I am willing to pay that little extra to defend a milk legacy. Milk is essential, it is for some people essential to learn that the imbalance we see here is a massive imbalance that the EU brought. Here we see (at http://ec.europa.eu/agriculture/milk/policy-instruments/index_en.htm), here we see that Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations, is pretty much the initial death stroke to the farmers. Now, there is partially soundness and reasoning here. Consider that we see “establishing a common organisation of the markets in agricultural products) where the main market tools are set into 3 parts”

  1. Market intervention
  2. Rules concerning marketing and production
  3. Trade with third countries

It is rules concerning marketing and production that is at hand. It was the introduction of quota’s that was some figment of someone’s imagination approach to fair trade. In actuality, it was truly an attempt to give an equal push for the small farmers and fishermen, but it ‘evolved’ into something quite differently. The larger supermarkets Tesco, Sainsbury’s, Asda, Morrisons, The Co-Op, Aldi, Waitrose and Lidl had no limits on quotas as they did not produce the dairy. You see, even as the fishermen were ‘obeying’ fish quotas, Japan, China and Russia went on a fishing spree (read: are still) so that people get their cheap fish, yet in milk there is another iteration. We see this in the Guardian of July 2012 (at https://www.theguardian.com/money/2012/jul/27/dairy-farmers-milk) the following “Tesco, Sainsbury, Waitrose and Marks & Spencer are all paying 30p a litre or more to dairy farmers, says the RABDF, which it says is the minimum survival threshold for farmers: ‘They are not so much the good guys, but they are at least paying 30p’“, which now gives us the issue that this year the price went down to 18.14 pence per litre. So if that is the average, how come the average price is currently 38% below the minimum survival threshold? How is that possible? If we accept that pricing is done on fairness and survivability, how come that this Economic Union is allowing for a supermarket situation where they squeeze the farmers out of a livelihood, all set to the allowance for a market, which they set is claiming to be for the fairness of all. Yet when we saw the Tesco debacle, not the PwC side, but the Tesco Executive side requires scrutiny too. Consider The Tesco Remuneration report (at https://www.tescoplc.com/media/1926/tescoar15_gov_remunerationreport.pdf). Consider that the CEO and CFO get CEO – £1,250,000, and the CFO gets £750,000. Also consider that the bonuses are CEO – maximum opportunity of 250% of base salary and for the local bookkeeper we see CFO – maximum opportunity of 225% of base salary. Consider that only 50% is set to sales and 30% is set to profit, how much money does Tesco need to make for these two people to have a really merry Christmas with family (or booze and hookers)? Now, even as the Guardian is stating that Tesco is not evil, yet they are matching the survival rate “all paying 30p a litre or more to dairy farmers“, so who is kidding who here?

That kept the rooster that crowed in the morn
That woke the priest all shaven and shorn
That married the man all tattered and torn
That kissed the maiden all forlorn

We get to the upcoming Bill of Rights. The Human Rights Act (HRA) will be dumped (read: scrapped enthusiastically). The Week published the following quote: “Scrapping the act will break the formal link between British courts and the European Court of Human Rights and stop the act being “misinterpreted”, say the Conservatives. They argue foreign nationals who have committed serious crimes are able to use the freedoms guaranteed under the Human Rights Act to justify remaining in the UK“, the right to self-govern is here in jeopardy. We seem to be all over Strasbourg to guarantee the rights of criminals, yet there is too little for their victims. Whilst the quote from the Tories is “aim is to “restore common sense and tackle the misuse of the rights contained in the Convention”“, this actually makes sense. There have been one too many stories on how a Rapist was given leave to stay in the UK, now he is imprisoned for life Rapist Dahir Ibrahim decided to retry his penetrating event. His defending lawyer stated “No long term physical injury was sustained by the victims“, so why not send his daughters to Pakistan? There is every chance that the culprits will be acquitted. Even more so, the Lawyers daughter could become famous as in one case the transgressor filmed 280 events. So his daughter could become a Bollywood star. Wouldn’t that be great?

There is the danger that events get uplifted because of emotional factors. That is not a good thing, which is why I voiced it in this way, we need to try to keep as much emotion out of legal issues, yet this does not mean to be soft on hardened criminals. It is the right of the UK to allow people in, yet in equal measure, if these visitors resort to serious crimes, should the victims not be allowed to voice for them to be evicted (through a court of law of course)? Even more so, why should any government allow for those deciding to go for ‘serious criminal solutions’ to be allowed within their nation? It is my view that Strasbourg has been too academic, too focused on finding a ‘compromise’ that this path seems to highly favour the path of the criminal and less so on the victim. It is my personal believe that the Bill of Rights might be a solution, especially if the 15 freedoms are kept.

So before we go into the last part. We looked at the economy (well, sort of), we see that Laws in general have failed the people of the nation, we see that large corporations are given too much leeway and too much options, whilst the press reflects this as ‘but they pay more than average’, which holds no water when the fee paid is 38% below the survivability threshold. By trying to please a few hundred at the expense of millions of non-receiving victims of society. Consider the next part. If I, for the most a dedicated Conservative see this, when I noticed the victims that the EC has been creating, how come Tony Blair and Jeremy Corbyn cannot see this? They should be squarely on the side of the Dairy farmer and the milkman, a side they both neglected (read: ignored). There is a constitutional failing in play and the fact that the hardships of some are mere plays for politics is just sad.

That milked the cow with the crumpled horn
That tossed the dog that worried the cat
That killed the rat that ate the malt
That lay in the house that Jack built.

Well, we just dealt with the milk. Yet, what has been ignored is the play of Rat and Cat and Dog. The cat chases the rat, but who is rat and who is cat? It can be argued that the EC and the USA are either, the issue with an exploitative symbioses is that it becomes increasingly hard to differ between the parasite and the body he feeds of, the better the parasite, the harder it becomes to find the parasite in the body. The dog becomes the UK, on one side it howls against the moon waking us all up (read: for naught). At times it chases the wrong party (read: mailman), yet the dog has its shiny moments. It howls, barks and bites the burglar in your house, it alerts to the dangers coming to the door and it can scare off dangers. Any dog has good and bad moments. The fact that some laws have still not been updated is a concern and the Bill of Rights wasn’t the first one that needed to come. However, for the benefit of the European segregation it does make sense. My biggest issue is that the EU decided on too little and far too late that makes Brexit a fact not to ignore, the fact that people like Tony Blair are now making speeches in France, winking to the UK that people can change their minds is a larger issue. Especially as the events leading towards Brexit has never been dealt with.

Yet we are not done, you see, Mario Draghi is still having a go at it, his latest quote states: “The figures won’t come as a shock to ECB President Mario Draghi, who warned in July that inflation rates were likely to remain “very low” over coming months, before picking up toward the end of the year” (source: Wall Street Journal), you see, there is a truth there, especially as he is relying on the Christmas shopping spree to save him. Yet, in this, is that number corrected (for end of year uplift)? If not than the European economy is in an even less inspiring state than most are willing to admit to. This in light of conflicting numbers coming from America when we see positivity one day, negativity the next. We know on a global scale economies are in a slump and because there was a dire need to keep the Status Quo and move it from virtual to fictional. We can no longer afford that game, which is why Brexit made sense.

We can use the quote by CNBC we saw on September 2nd (at http://www.cnbc.com/2016/09/02/jobs-report-proves-janet-yellen-is-wrong-about-the-economy-commentary.html) where we see “The reported August job gains were also considerably below the gains in June and July. The unemployment rate was forecast to fall to 4.8 percent, but held steady at 4.9 percent. Both numbers are disappointing and make a September rate hike less likely“. We could agree that it means that the US is in a slow upwards momentum, which would be really good for the US government. Yet it is only half the picture. The other side we see quoted in the Business insider (at http://www.businessinsider.com.au/albert-edwards-consumer-crutch-holding-up-us-economy-kicked-away-2016-9). Here Edward claims what I have stated in other ways several times before. The quote “Albert Edwards doesn’t think that the consumer can keep the US economy afloat for very long” was only the start, but it boils down to the fact that the US consumer is stopping its spending’s on many levels. The US has a massive issue at that point, because it has relied on consumer spending for far too long (instead of corporate taxation). Even if spending goes up the smallest amount in the weeks leading up to Thanksgiving, the elections are on November 8th, 2016 which means that the successor might enjoy those results, but the Democratic Party will only be able to rely on half-baked speculations at that point. Even if they would dare to go that distance, there is enough ‘evidence’ to see that their predictions would end up being overly optimistic. What is the issue is that the US now desperately requires a solution, which those in power, who require the status quo to continue will not allow for. In that light we see the remarks by Tony Blair. Trying to sway the people that they can change their minds and more important on downgrading the new house at any cost. You see, when the UK sees that the move was harsh, but slowly people are starting to see their new living room, different, likely a little smaller, but soon it will feel comfortable and it will come with the feel of comfort the people in the UK have not known for decades. It will not come in the wake of laziness as many will need to work really hard, but that money will now benefit the UK, which is why we need to pull together as a Commonwealth, we need to pull together a lot more than most of our politicians are comfortable with. Soon thereafter it will no longer be Jack’s place, it will be your home. One that is interconnected in many ways, some good, some bad and someone is always chasing you, just as you are always chasing something or someone. A lesson in coexistence that does not require the parasite approach, something they still don’t get on Wall Street. You see as we see in the Australian Financial Review quotes like “Richard Fontaine, a leading US foreign policy expert” on how Australia is so vulnerable on Chinese demands, he seems to forget that his government did whatever they could to ram the Trans Pacific Partnership (TPP) down our throats. And now that the US is realising that with Brexit the game is truly ending, in addition we see that President Hollande feels the coffin nail that the TTIP carries as well as the vision on how it seems to only propel the need for big business, whilst Google’s option to drive commerce is not yet ready, it could be the true new innovation for small corporations, where the corporations keep the power on a global scale. Three elements that show that not only will the US face an economic slump (read: I find the statement ‘recession’ too speculative). Yet, the playing parties in the final moments on a lame duck president on the way to the morgue is not a moment to put political weight to final acts of despair whilst the new president is not set and that agenda could unwind everything, so the players have too much to lose as the dealer is about to change, possible with new decks of cards.

In that regard the economic players are currently realising that until January: ‘The safest way to double your money is to fold it over once and put it in your pocket‘.

Not good news for President Barack Obama, Tony Blair or Strasbourg for that matter. Perhaps Mario Draghi will get it at some point, but I am not holding my breath on that achievement to happen any day soon.

 

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