Category Archives: Politics

September 23, 2013 · 13:31

What lies beneath!

Today is the day we get to take a look at those who get and those who did not receive an Emmy. This is a remarkable year for it. Not because of the winners and non-winners, but from my personal view on the quality of TV shows. There was little way for me to predict the winners in this year. This is not a year where there is a clear winner. They were so many amazing shows and some of them blew away their own fans. So whether we cheer for 30 Rock, Louis, Nurse Jackie or Glee, or even all of them. 2013 shows that the audience won in a very big way. If the bad economy brings out creativity then no one can afford to miss the 2014 Emmy’s as true creativity is just around the corner.

Talking about the economy, is there any news? Well, today, not unlike the Emmy’s the UK is facing issues like vetting the spending by labour, Ed Milliband does not tolerate backstabbing and George Osborne is facing Scepticism over the multi-billion pound sale of Lloyds Banking Group.

So as we are in the sphere of the Emmy, considering that soon there will be the Tony for theatre and the BAFTA and Academy awards for the cinema, here is the Churchill Award. This golden statue shows us Churchill in a thick winter coat and a cigar. Like the image we had of this great man during WW2. We should not confuse the statue with a Hitchcock or any other drama figure. Here we ‘award’ the politician.

So in good standing, the Churchill award for political events goes to (wait for it)……

Nigel Farage of UKIP!

Surprised? Angry?

Let me elaborate. I am not on his side. I remain for now a conservative. Yet, when we watch the news in triviality, where not unlike the issues in Australia Labour seems to be in power struggle after power struggle we wonder why we should support a party where the bickering of being in control takes so much energy and time of a party. Now I am all in favour of a Milliband labour with the bedroom tax gone. Yet, how will certain measures be made with a trillion plus in deficits? Similar warning in regards to the squabbling was reported by BBC’s Justin Parkinson as he recouped the words by Dave Prentis.

The second player, ‘my’ preferred side David Cameron was accused of bringing back more of the ‘nasty’. That is not a bad thing (still highly uncomfortable). I agree that costs have to be cut, yet for now he has not gotten a hold on their spending. In addition his peer in parliament George Gideon Oliver Osborne, Chancellor of the Exchequer did not help much. Yes, on his watch the economy is slightly better. However, if we give weight to the Guardian (http://www.theguardian.com/business/2013/sep/22/first-signs-recovery-despite-austerity-george-osborne) it was not his victory. William Keegan has his ducks more than just in a row and as such this article has weight. Still, the UK could have done a lot worse. Heavily against the conservatives is the Welfare Reform Act 2012 (aka bedroom tax). I always thought of this as a bad move. Especially, in a time and age, where the UK housing shortage is massive and no one can afford to move or change apartment. Nailing these people to their empty bedroom (or cupboard with bed) is just not the way cricket should be played.

So we see the winner Nigel Farage. I consider this man to be dangerous. His ideas are out there and the consequences of moving away from Europe will hurt the UK economy in ways we still cannot foresee. Still the idea of a flat tax approach has merit. When we consider the Stemcor’s of the world (or in this case, just the UK) the umbrella options and other small little twinkles that give the wealth more deductibility’s then the average welfare person many wonder. The fact that he gets stigmatised on matters seem to work positive for him as well.

Still, the plays he plans should he ever get to number 10 will hurt the UK in ways many of his voter will not realise until it is too late. He speaks to those losing much, to those in economic hardship, ever willing to blame anyone else, even if no one (bankers excluded) is to blame.

The man has the charisma and he has the drive, people react to that and in the end, all sheep plenty and few will follow the herder that gives them the best music (even if he is sitting next to a blowing volcano). If the others do not change their ways then my initial prediction from my previous blog (at https://lawlordtobe.com/2013/05/04/ukip-or-u-k-i-p-ur-kiddin-i-presume) will come to be true. Labour and Conservatives on the same opposition side of the isle. That would be one hell of a show to get tickets to.

 

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September 22, 2013 · 19:04

NSA linked to corporate dangers?

The Netherlands are facing a new issue, one that they had not bargained for. It is my personal view that the matter at hand seems to be getting misrepresented, so I need to do something about it.

First let us take a look at the reported facts.

On Saturday 21st September the Dutch NOS reported on TV and on their website on how the Dutch are opening their doors to the NSA (at http://nos.nl/artikel/553680-nederland-opent-deur-voor-nsa.html) The issue is that on business grounds the Amsterdam Internet Exchange is considering opening an office in the US, which would under the FISA all their servers open to investigation by the NSA. In that scenario all of the Dutch internet traffic can at that point be monitored by the NSA.

The first question that comes to mind is what the exact benefit is to open an American office. I wonder why that step is so essential. That reason might be very valid, I just do not know.

The danger is not ‘privacy‘ as such. So many people keep on blabbing on how their privacy is so much in danger. I think that remains to be grossly exaggerated. The additional issue raised by the NOS on their Saturday broadcast (which was not on their website) is a different matter. In there the mention was made by Nico van Eijk from the University of Amsterdam, where British executives from an online gambling site, something that is perfectly legal in England, is not legal in the US and when these executives were in the US on business for other ventures, they got themselves arrested. This info can be found at http://www.cato.org/blog/uk-gambling-ceo-arrested-us-airport. The important quote here is “the U.S. has exploited those treaties to effectively kidnap British citizens who broke no British laws, and extradite them to the U.S. for trial on charges of violating U.S. law“. There is of course another legal side to this. Did David Carruthers actually enable these transgressions of law? Connected to this is the Mark Emery case, which involved a Canadian ‘evangelist’ for medical Marijuana. Did either enable US business?

A quote from the UK’s Daily Mail gave us “Investment bankers Goldman Sachs says that the clampdown by the American authorities could mean ‘that the US could cease to be a viable market for online gaming companies.’ That would be tantamount to destroying the earnings of the main firms since 70% of them originate from the United States.”

The two sides here are that in the first degree these companies do rely on their American market. Knowing that the events were illegal, going to the place looking out for you was not really that bright was it? The second was that the statement came from Goldman Sachs. Bringers of the popular gambling option ‘soon, because of our bad judgement, you no longer own a house‘. Seems a little warped doesn’t it?

We could of course come to the notion that the NSA executive is riddled with spineless paperbacks, not a hardcover amongst them! But the reality is not that clear. In actuality, the game they could end up playing is a lot less appealing for those outside of the US.

For that part we need to take a look at the NSA website (certain parts of it) and to start we need to look at a document that came from the Defense Technical Information Center in Fort Belvoir Virginia. This document called “2009 National Intelligence, A Consumer’s Guide“, where at page 52 it states “The Act specifies that OIA shall be responsible for the receipt, analysis, collation, and dissemination of foreign intelligence and foreign counter-intelligence information related to the operation and responsibilities of the Department of the Treasury.”

Now add the information on the mission statement from the treasury as displayed by the white house. “Support the Department of the Treasury’s mission to promote economic prosperity and the financial security of the United States” this is only part of that mission statement, but by itself it is just as valid. The two now give them additional possibilities through the NSA.

That part is seen on the actual website of the NSA and specifically a department called the ‘Information Assurance Business Affairs Office‘ (at http://www.nsa.gov/ia/business_research/ia_bao/index.shtml), here we see the following parts:

1. The IA Business Affairs Office (BAO) is the focal point for IA partnerships with industry. It also provides guidance to vendors and the NSA workforce in establishing IA business relationships and cultivates partnerships with commercial industry through demonstrations and technical exchanges.

2. The benefits of working with the BAO are (two of them):

  • Increased product marketability
  • Assistance in the development of next generation solutions

These are only part of the mission. They do a lot more. So in the upcoming age where the world will revolve on big data and parsing information, US businesses might get the option to get access to Exabyte sized data, marketable, distributable and sell-able. The intelligence side of the US was never the problem. The corporate side, for which I have tried on several occasions to warn others about (like ‘the Google’ and ‘the Facebook’) will get access to information and innovation on a global scale.

When we consider the utter inability by the US government to get their own spending under control (not just them mind you). As they are now closer and closer on the edge of bankruptcy (17 trillion in national debt will do that to anyone), their own treasury will only need to receive just one mandate ‘to grow and assure the continuation of the United States and its economy‘, which is already part of the treasuries mission statement. In the age where the current president is so polarised against his opposition, where he is adamant that spending is the only option, he will not hesitate to speak these words (can’t really blame him, can I?). It is decently likely that this would give specifically assigned parts of corporate America the option to market Petabytes of data. Outside of the US, the industrial age would then collapse in a way you cannot even imagine. They could globally sell lists on scales no one can compete with. Consider the future to have one provider in data; the ripple effect in the industry would be devastating. However bad you think you have it is nothing compared to what happens if the thought I am having is a reality. Consider the data files people created. The issue I was confronted with yesterday is that someone saw a nice design on a 3d printer and he wanted to use it, but it was not his design. The help file contained the info I expected it to have. All files from that program were to be considered shareware/freeware and could be used and distributed freely. The software maker had done this to avoid liabilities. It made perfect sense. He made a program he wanted people to use, he did not charge anyone for it and to avoid people coming after him for being nice, he made it all freeware. But whoever designs in that program, those data files are freeware too. So anyone can use it. How many programs do you think are out there built on that principle? Now consider those artistic idea’s, traded freely and there is nothing you can do about it.

That was part of the fear I had and as almost EVERYONE gave away their rights on social media, who profits? It seems to me, not the creator!

But then those in social media opted for that, however those on corporate networks and business internet connections did not opt for such futures. The question is, how protected are they from misuse of their data?

So how long until it is no longer about finding terrorists?

 

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September 20, 2013 · 14:06

The empty stage

That was the view I had at 05:00 when I woke up switching on Sky News. As I was still dealing with painkillers it was all there was to do. Until the painkillers kick in, whatever I try to focus on will not be successful. It is an anchor weighing me down and in my entire life I have never taken that much chemicals. I will go further in stating that the amount of painkillers used in the last two weeks outstrips the sum of all painkillers used in the past 50 year. My life sucks for now!

Now Secretary of State John Kerry enters the stage.

His speech is focussing on the fact that we all have our own opinions, yet we do not all have our own facts. It is about the evidence of Sarin. The UN report confirms that this was the case. We knew all that. His report is now on the view that it was all the fault of Assad. This is all an emotional speech on how it is all the fault of Assad.

I need another painkiller!

The UN report, as reported by others are all about the fact that Sarin was used, yet the UN report as stated by others did not state WHO was the one that fired these missiles. Am I watching another spin report, all about emotion and posturing? This should still be about removing the chemical weapons, which I agree with is a needed thing. Yet, the theatre unfolding now is about other things. It is about the binding resolution! Should I now see this as a secretary of state throwing the equivalent of a tantrum?

No it is not! Apparently the US side parties involved want to bind this under Chapter 7 so that the resolution is binding. And again China and Russia are possible standing as a barricade in these times that require solutions. It seems that Russia is still playing politics (as a politician would), but this is about a lot more than just the chemical weapons I reckon. Like a chess player President Putin is moving his pieces little by little. Is he keeping his ‘friend’ out of harm’s way, or is he trying to guarantee a multi-billion dollar deal with President Assad? If that is so, he could end up with a 3.75% commission (which is the average commission for a junior salesperson), adding up to an easy $5 million, which is not a bad day’s work. Can I please get a spokesperson position at $250,000 a year?
I need the income!

So we are looking at a play to set the binding resolution through application of enforcement measures under Chapter VII. This part contains Articles 39 to 51. This is the part that Assad would not like. The binding resolution means that President Assad could be taken towards a time line, if ignored, or if stall tactics are shown then a military option opens up as can be read in Article 45 ‘In order to enable the United Nations to take urgent military measures, Members shall hold immediately available national air-force contingents for combined international enforcement action. The strength and degree of readiness of these contingents and plans for their combined action shall be determined within the limits laid down in the special agreement or agreements referred to in Article 43, by the Security Council with the assistance of the Military Staff Committee.‘

Why am I on the fence? The simple truth is that the Russian claim that the attack was a provocation, fired by the opposition forces is not that unreal. There is supporting evidence of two kinds.

The first is that the locations of the chemical weapon stacks are not all known. For all we know the opposition have been by chemical location for some time. The second part is that I have had my reservations why Al-Qaeda would get involved in a situation where they are on the same side as America. That never made sense. What we know about AQ is that they are about them and their needs. Since when was their position ever on the side of ‘another’ population (read the Syrian people)? I cannot claim mastery of knowledge here, I could be wrong. Yet the tactical position they have to find weapons against Israel and America would be too appealing. The fact that AQ provoked an act that gets America in another war, possible drawing Israel in as well was not that bad a strategy. It seems to have worked. So is the Sarin the baton that is getting passed on and on? Let’s not forget that the AQ is a party of interest in all of this, so whatever we think is going on is less clear then most suspect.

If we know that the Syrian forces had certain equipment, is it a possibility that they had been captured? The part I have an issue with is that with all those satellites, no one is watching the events in Syria, if so, then where is that footage? John Kerry made the quote “There is no indication, none, that the opposition is in possession, or has launched a CW variant of these rockets” it seems to be a reflection on the 122mm improvised rocket. The fact that he speaks of ‘indication‘ means that either he has no INTEL on this (or was handed it), or no one was able to record this. With all those satellites in orbit, this is an issue that I have a problem with.

I reckon that the satellite views do exist, but there is likely not enough information proving which party instigated these fireworks. If so, then it would be out with the press and all to see and judge. It is nice to play this game, but you need evidence, and that is what is lacking on the US side. Yes, Sarin was used, but by who? It is the question that haunting us all and we see again a polarisation of views Russia on the side of their buddy President Assad and the US taking up the other side.

The only positive of all of this is that another nation is joining a non-chemical weapons group, although it is a little late to that party. The only issue remains is whether AQ got access to the CW missiles and if so were they able to syphon any of them to other locations? This is what has Russia spooked most of all. The reason is that there are links going back well over half a decade that AQ has links to Chechnya terror groups. If they end up with only one missile, then the cooking mixture for utter panic in the streets of Moscow will be not far behind. Chechnya fighters have several options for entering Russia and getting close to Moscow.

If there is validity in my approach to these events, then this could mean that Russia will only be ‘cooperative’ for as long as it takes to know whether AQ has access to the missiles and whether they are sending a few on to their ‘friends’. After that Russia is likely to return to a stance that the US would classify as ‘their un-cooperative selves’. These all link together as we the people have been numbed by spin, misdirection and stories of all kind by several sources, many with their own agenda. We are numbed like a patient on too many painkillers. The longer this lasts, the more emotional political presentations get, up to the moment that this approach becomes utterly counterproductive.

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September 18, 2013 · 21:13

Bankrupt or failed? It’s all the same!

This topic applies to two events that are hitting two groups. The first one is about one of the final nails that are getting hammered into the coffin that is laughingly called the US economy.

Yet, what is actually in play? On one hand there are the mentions that the US economy is on the rise, so why is the debt limit such a strong issue?

The second issue is one that is playing in the UK, but about that later.

For these issues we need to consider a few chess pieces, that had been ignored in the past and there is only so much you can do before those ‘forgotten’ pieces rear their ugly head. Yes, I agree that there are signs that the US economy is again slightly on the rise. More jobs are offered, people are getting back onto the horse of labouring enterprises. There is however the other side. The government seems to ignore the need to get their budget in order, they ignore that there is a consequence to non-stop borrowing. Excuse upon excuse, story upon story and where does this lead?

The issues got visibility after Sky News reported on a story that involved the interview with Treasury Secretary Jack Lew. Reuters quoted him stating “We cannot afford for Congress to gamble with the full faith and credit of the United States,” Lew told the Economic Club of Washington, a business forum. Yes, he is correct in that, yet the strong story to hunker down on excessive spending is not loudly voiced. That same situation is what the Dutch government is currently facing. The story there was that it will never be like is was ever again is the story in the Dutch case. The pre 2008 life style is gone and likely gone forever. It will take a small nation like the Netherlands 5-10 years to get their spending under control, but it will never be as good as it was before. Why mention the Netherlands? With 16 million people they are at 5% of the American population. Their debt is around 430 billion. This is less than 2% of the national debt the US has and they have now announced austerity measures to reduce their deficit. The measures will be a helping of bitter fruit to nearly all Dutch. The total US debt is said to be around 60 trillion dollars, which boils down to $9000 for every person on the planet.  Basically, the annual US Currency degradation is larger than the total debt of the Netherlands and the Dutch are looking at the next 10-15 years of financial hardship, and then only if the economy has picked up to the smallest extent by the end of 2015. If not, then those 15 years might not be enough. So the summary ‘the good times are gone forever’ seems amply put. More important, as the US debt devaluates quicker than the annual interest payments, is there any way out left for the US but bankruptcy?

The RABO bank director had made a comment that ‘all will have to tighten the belt’. Sounds nice, but let’s not forget that financial institutions playing fast and loose with other people’s money was cause to most of these issues. The second link is that he is not just mentioning the massive debt, yet a small mention on how the Dutch have such a good retirement treasury. It is another first attempt to get their fingers on the one place that was supposed to keep a population safe. (at http://nos.nl/audio/552545-directeur-rabobank-we-moeten-met-zn-allen-de-broekriem-aanhalen.html)

The US seems to ignore again and again that there is a limit to spending, so the lesson the Dutch are learning the hard way is one that American is currently not ready to face. They might say yes, there is a limit, but then state that they are nowhere near these limits. I disagree! I reckon that the point of no return was reached in 2011. The outstanding debts are now a matter of more than just multiple generations. The fact that we are given stories about returning economies are one thing, the part on how taxation must be paid (and is not) is silenced again and again. the rich move away their fortunes to the Bahamas or other places that will keep it ‘safe’, in addition corporate America is doing the very same thing by moving their ventures to places like Ireland, which allowed several corporations to pay less than 0.2% in taxation. How can the US survive when people without jobs cannot pay taxation and the super-rich move outside of the reach of the US treasury so they do not have to? These steps are socially undesirable and in my mind it is a form of treason. How can a company hide behind the US as a shield stating they have rights and then move away as they shun their own duties? These ignored elements are part of the problem that is likely to soon leave the US in a state of bankruptcy.

The US claims to be a nation of laws, which is fair enough. I think that they forgot that when greed calls the shots, the law becomes a shield for criminals, whilst becoming an anchor for those they are supposed to protect. It is a topsy-turvy world indeed.

So as we move towards the next 8 weeks of uncertainty, as the Democrats and Republicans are moved into a space that is more polarised then sunglasses, we will see that some will get a few coins from the jittery movement of the markets. Also take notice on how some of these people proclaim on how this is all so much unfair and how spending just a little more will save the people. No! It will not. It has not been a solution for almost 2 administrations. It is time to look for an actual solution, instead of prolonging an absolute failure.

So time to take a look at the UK now!

They have their own deficit, but more importantly, they do have a different set of problems. The NHS was at some point to have some kind of system that would record some forms of information. (Or so it would seem).

The NHS IT system is a failure. So much so, that it is the biggest failure in UK history. I reckon it is big enough to be the biggest failure in European history, but that seems too much like splitting hairs. The program had cost 10 billion pound, which makes it a 0.5% of the total British debt. That takes some doing to be such a failure.

Why are these two events connected?

Apart from the usual suspect that both involved politicians, it seems to me that both situations require a clear vision of what needs to be done. In both places they are lacking. It actually goes further than that, however for that part, let us take a look at the NHS laptop.

The Guardian is giving it some attention at (http://www.theguardian.com/society/2013/sep/18/nhs-records-system-10bn)

To do this, we will need to look at a few quotes that were made in this regard.

“MPs on the public accounts committee said final costs are expected to increase beyond the existing £9.8bn because new regional IT systems for the NHS, introduced to replace the National Programme for IT, are also being poorly managed and are riven with their own contractual wrangles.” This is one of the stronger quotes. We are looking at three distinct parts.

1. ‘Own contractual wrangles’ looks to me that the wrong people were involved in the contractual parts. Too much baggage or too little know-how, no matter how you twist this, when the contract is about ‘disputes‘ the people are not linked to a contract, but driven apart though paper (not unlike less successful marriages). This all makes for a nasty ‘separation’.

2. ‘new regional IT systems‘ and ‘being poorly managed‘ means that this is again a track of issues that are set to how good one’s PowerPoint presentation looks, not on how well an infrastructure can be managed. It is a fatal flaw in any IT project.

3. ‘Final costs are expected to increase beyond the existing £9.8bn‘ Like that is a surprise? This means that the costing’s were never properly done. Even in an age where the UK had a 3 year bad run with the economy, it seems to me that proper setting out a charter was never done. No charter, no limits and no results. It is again the same story we see too often when interested parties see the government not as a customer, but as a gravy train with no end in sight.

The IT is no different from any other business, when they see a governmental place where the gravy train just runs through it and they hope they are the station the train will stop. In my mind I see these places as a spot with too many managers and not enough workers. This is often the situation in many organisations. When it is in a commercial organisation it is a nuisance, and if they do not bring home the bacon, they are often let go at some point. With governmental organisations it is a different thing, more important, when it is done on regional area’s where they all want to be ‘in charge’ it adds up to nothing less than a death sentence to any structure that does not have commercial goals. It will collapse onto itself.

Here is the comparison with the US government. Like the NHS both are spending huge amounts they do not have to reflect upon. Not unlike the US their incomes are going down fast as tax havens take away the annual incomes the UK/US used to have. So in all, we are a looking at an engine that is supposed to run whilst we allowed the fuel tank to be external and no longer attached to the car. How stupid is that approach?

Richard Bacon, who had co-written a book on failing government projects, said that the NHS’s particular problems stem from the original contracts signed before 2002.  It comes from a book he wrote with Christopher Hope called Conundrum. I am not disputing his view; it does however show that 10 years later a situation is holding the UK back. Perhaps a better contract team is/was needed? This all reads like my first item I mentioned. Nice that someone from Norfolk can see the issue that the London bigwig’s can’t be bothered to identify on a good day.

The issue I see is that the contracts might have been OK or acceptable at that time, but government situations require a different scope, and signing something that is holding back the UK 10 years later is really a bad contract (from the NHS point of view). So people were hired who lacked that same insight. It is not just on what they were instructed to do, I am questioning whether the right people were ever asked to question the outstanding approach to the long term extent it was needed to be looked at.

Too many are trying the same approach to other scenario’s, which is fair enough, yet those who should be in charge are NOT thinking this through. The mind is lazy, when something works, use it again, I get that! In this case it was not a solution and neither is it when it comes down to spending again and again to shove forward an economy that requires $10 for a return of $0.10. It is bad business through and through.

The one quote from the Guardian article is the crux ‘The government was keen to distance itself from the problem.‘

That is just not an option. Moreover, if it wanted that, it should have never gone near this issue to begin with. If we look at the BBC in 2011 (http://www.bbc.co.uk/news/uk-15014288) the following quote comes forward “Health Secretary Andrew Lansley will say: “Labour’s IT programme let down the NHS and wasted taxpayers’ money by imposing a top-down IT system on the local NHS, which didn’t fit their needs. We will be moving to an innovative new system driven by local decision-making.”

Whilst in July 2010 the issue stated by the BBC (at http://www.bbc.co.uk/news/10557996) was: “Mr Lansley also announced he expected all NHS trusts, which run hospitals and mental health units, to get foundation status by 2013.” So what did get done? More important, it states nothing about abandoning this ‘new’ system at the moment of release.

It all gets a little more hairy when you consider the quote in that very same article ‘Professor Chris Ham, chief executive of the King’s Fund think-tank, said: “It is a very radical programme. We have never seen anything like this since the inception of the NHS in 1948.“‘

It seems to me that this was another PowerPoint approach by those who talk nice but have no idea where the keyboard is stored. Certain quality questions should be asked from those who can only think in election terms. These systems are supposed to outlast them all. This is an issue which has, not once been properly dealt with in either the US or the UK.

How much more tax money will be spent on trains that lead to a place called nowhere?

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September 12, 2013 · 03:13

Foreign and Domestic

America is under attack. The question becomes whether this is a new one, or one that has been ongoing. There are several thoughts and they all, too some extent link together.

FOREIGN
The foreign groups ‘attacking’ America include both China and Russia. They are both using to some extent their own puppets. Let us call them Syria and Iran for now. Russia’s pulling the strings of Iran. No matter how the strings are pulled, no matter how acts are ‘begotten’, the issue is that Iran has been given the one carrot it cannot ignore. It is the support to get a nuclear power plant placed within Iran. Russia gets a string of benefits; this includes making America look bad, making their claims fall short, which according to the speakers in the Kremlin will look pretty good on the front page of Izvestiya (Известия). China is now giving support to Syria as Syria in a last moment of desperation plays the ‘oversight on my Chemical Romance stockpile’ card. The question becomes, whether it is just last minute, or certain cards were offered during the G20 to be played, because any of this, must seemingly be cast on making the US President to not look bad (the view projected after the fact will be an entirely different issue).

To support certain new options goes decently further than just the ad-hoc statement by United States Secretary of State John Kerry. These issues have been playing for some time and most issues started to accelerate as we all saw in the news. Many of the top tier papers reported these events. So how come that these events are still seen as a foreign attack?

That would be a fair question!

China and Russia had been blocking many of the events needed to make any stance against the indecent slaughter of the people of Syria (on both sides). I could cleverly state that Russia and China removed the ‘s’ and used laughter to block the US and other nations to get anything done there. The fact that the Bushehr plant is announced to get a new baby brother as reported by Polina Garaev “Putin will present Rohani with new deal worth $800 million for new batch of S-300, construction of new nuclear reactor at Bushehr” gives additional weight on the Iranian ‘support voice’ in regards to the Syrian question. Whether this will become the Alice Cooper nightmare remains to be seen, it is however clear that the S-300 additions do mean that they fear the response by Israel towards this new billion dollar baby. Trust me when I say that there will be well beyond $200 million in additional fees for consultancy, education and other requirements. The one part I do like about this all is that Iran seems to not trust their own propaganda on the ‘advanced’ Mershad from 2010 and prefers to rely on solid Russian technology as it was developed in 1978 (sometimes life throws you a nice juicy steak to blog about). Still, if Israel cannot get there via the air, I think I have found a way to super charge the fuel rods to melt them down all by themselves (pretty much stopping both reactors from ever working again). It should take only three elements and I got the idea from a snow globe, go figure!

All four players in this parade are anti-American; their union is not because they like one another, but because of their individual needs united in non-American likes. That does not make for an attack. That does not mean they are attacking America. That part had been shown in http://www.bbc.co.uk/news/world-us-canada-23845800, which is only one of many newscasts on that topic. In addition there is http://www.nytimes.com/2013/09/06/world/middleeast/new-us-envoy-to-un-strongly-condemns-russia.html. This could be seen as a first level of evidence that the United Nation Security Council (UNSC) was nothing more than a political tool to stop any kind of condemnation and the lowest forms of support for the victims of the chemical attack.

Are there doubts?

Yes, even though some claims came that there was ‘evidence’, I am still having certain doubts in regards to the actual attacker. When a State secretary goes on a world tour visiting heads of state showing ‘secret’ evidence, parts are not right. It is shown to a group that is too large. Instead of giving it all to the media letting EVERYONE publish it would have been a much better policy, it could have had the result that the UK would have been in favour of actions. The delays, the Intel that WOULD have been there from those big boxes high in the sky, (commonly known as satellites), could have shown much of the evidence. Yet, personally, I am not completely convinced that they were attacks ordered by Assad (directly or indirectly), which I admit is a personal view and based on gut feeling more then anything else. Is it possible that some misguided Assad supporter did this? Yes, that is a definite possibility. I dealt with these thoughts in a previous blog called ‘tactical choices of inactivity‘. I have always believed that Al-Qaeda is only about Al-Qaeda and their goals. It was never about Syria for them (I personally believe this). The theatre of war in play gives them ample opportunity to get to USA and Israel. There is a chance that the number of military opposition leaders, who knew about chemical caches seems larger than most considered, which means that others knew too. This entire new play is as I see it is not about the fear from Syria AND Russia that unwanted elements might want to get things going out of hand. It is likely that this is already the case and a USA offensive would stop any chance of that part getting a certain level of control. It could be that this danger is in play, meaning that both Russia and Syria want to get out of the way fast, allowing the new diplomatic play to proceed, whist the US gets left holding the bag.

No matter how this plays out in any diplomatic way. We will see soon enough that Syrian victims will get overly victimised soon enough with added by-lines on how America never intervened.

DOMESTIC
In my view, I see that the domestic enemy of America seems to fit into three distinct categories. First of all, this is not about lone wolf terrorists, or any terrorist groups, they fall in the foreign enemy group. No, the Americans do not get to be that lucky as such.

The first enemy group are those libertarians hiding behind ‘freedom of information‘. This group is for the most the direct one we see, receiving all kinds of media support and protection. They do not need to fear the House of Lords and some Leveson report, but they do ‘fear’ what the NSA had been doing. The electronic Frontier foundation did instigate a case which they won. Sky News covered this at http://www.skynews.com.au/world/article.aspx?id=905204. My issue is the quote “as part of the agency’s effort to track potential terror plots”

In my mind, when (not if) the next attack on America succeeds, then the EFF (Electronic Frontier Foundation) should MANDATORY in the light of ‘freedom of information’ reveal the names of all their supporters in this case to the family members of the victims the next attack has. There will be no carefully phrased denials; there will be no talk about ‘we so sorry’. I want to see those names clearly shown on-line. In addition, the EFF board members John Perry Barlow, Brian Behlendorf, John Buckman et al will have to visit all the funerals of those victims and look the survivors and family members of the deceased straight in the eyes. I wonder how ‘ideological’ they will feel at that time. Interesting that they (as far as I could tell) have not been too active in protecting people from places like Microsoft and others when we see articles like http://rt.com/usa/yahoo-microsoft-campaign-political-862/

That is another matter, which is ALL about personal gain (by those corporations) and not about keeping the American people safe. Another article is http://tv.msnbc.com/2013/06/13/gamers-fear-microsofts-xbox-one-could-be-future-of-prism-after-nsa-revelations, I do not agree with that article. That is not about some PRISM project, it is about Microsoft making sure that Microsoft gets more and others less. That is about greed and spawning INACTIVITY to the future new developers (unless it is in the hands of Microsoft). With gaming as a hundred billion dollar market, and as the gamers market surpassed the porn industry as a revenue group, did you expect these events not to happen?

I personally see the EFF as a sanctimonious group at best, of course others have their own view which are quite opposite of mine and as such they are very welcome to have that view, because I do believe in freedom of speech. I do have an issue with it when you endanger the safety of a nation.

The second group are the economic leprechauns (‘leper cons’ might be a better term). These are not the good and fiddledy diddledy types walking around with a cauldron of 100 gold coins. These are greed driven monsters in need of more and more at the expense of everything and everyone. They will enable their voice to whatever keeps them playing the game. The attack on Syria would have meant that their profits go down, so they would do whatever they could to stop it by forcing a diplomatic solution view. It seems such a humane view, yet, they will avoid taxation by moving funds offshore, they avoid taxation by becoming a virtual entity and they will prolong their game by removing your rights and your future. I personally believe that in many cases banks are on that side too. Did you forget on how in the lowest moments over 3.5% of mortgages are added to the foreclosure listings? Why are THEY a domestic enemy of America? Are sound business strategies suddenly outlawed? No, they are not, yet there have been too much personal and corporate gain preferences in the past and war is usually bad for business, unless you sell ammunition. In that regard my words might seem to be empty in the view of certain people, yet consider that America is an ideal by the people and for the people. How come that those views are so often drowned out by corporate greed, to give view to what is good for corporations and their stakeholders?

The third group is the most dangerous of all, it is a wild-card called ‘the self-centred person’. They are traitors, manipulators, journalists and/or politicians. The reader could even see me as one of these types of people. This group is dangerous as they could also be members of the first or second group. Yet, whilst wearing one of the other two cloaks they are only in it for the good of self. Edward Snowden falls in this group. Too much ‘evidence’ showed that he was all in it for himself. This was never about freedom of information or the security of America, it was about his life style, his future, his fortune and he was so willing to sell America down the drain in the process. The evidence? If that was truly about some level of honour, he would never have gone to Hong Kong or Russia. Several countries do not have an extradition treatment with USA, the fact that he ran to nations who are direct opposed to the American way of life should be seen in that light. Bradley Manning basically does not fit this group very well. There is a valid concern that he was misguided in his choices, when the choice was there he just gave it all away to Wiki-Leaks. In the smallest of defence of Manning, it seems that he at least was never out for personal gain; his ideology was, as I see it utterly misguided, which makes him the odd duck out. The recipients were however very willing to push his buttons for what they believed was a ‘righteous cause’, manipulative steps to say the least.

The problem with my own view (I will admit to that), is that my view has evolved from information given to me from journalistic and other sources, whilst I know that many in this ‘game’ have their own agenda to maintain. That means that it is about a target they have. The time of truly neutral journalism has been over for some time and I fear it will never return, which makes for an interesting view of the first amendment. The freedom of speech would become the freedom of representation of those we service, because the board of directors in a media group are often linked to other endeavours, making their freedom of speech a lesser item.

America is in my humble opinion under attack, and Syria is just the new stage where the American chess pieces are about to be moved, whilst some of them will be removed. I wonder where we all stand on the 1st of January 2014. That date will be soon upon us and that view might partially depend on the steps the growing New World Order coalition of Russia, China and India will take.

 

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September 1, 2013 · 22:44

Politically phrased budgets

I don’t get to take a jab at the Guardian too often, so when that day does come (like today), then I like to enjoy every moment of it (overall it is still the best paper though). In this case it is an article by Lenore Taylor on the article ‘Rising cost of living, just an illusion‘ (at http://www.theguardian.com/world/2013/aug/30/household-bills-australia-wages-rising)

The new ‘analyses’ show that the average household was better off by $5300 compared to 2008. Are you for real Miss Taylor?

Let’s look at some numbers. I have lived in the same place since 2008, I will even add to that that most of what I have is from around that time, and according to Energy Australia I am regarded to be a stable user, which means that my usage has not changed that much over the years. Yet, in 2007 my average bill was $160, in 2012 it was $275 and now it is $375. So in 6 years my electricity bill went up with a whopping 134%. the bills in 2013 have been less than $2 apart per bill so it seems that overall my usage remains the same.

Her reference to the ‘Natsem modelling’ is there, and apparently it claims that the annual increased cost of living is 1.7%. My train ticket had gone up by 8% (which was better than the NSW projected 10%) and my rent in the last 2 years had risen by 15%, the last step was a 7% increase. As the last two costs are costs we all see regular like clockwork, it seems to be that her article is only slightly weirder then just plain bogus, but that might just be my view on it!

Consider that many people have not seen decent raises in the last few years as some companies had hit hard times; it seems that I was reading a story with the missing bang of realism.

So the question becomes, is she just quoting a source, or is she missing the ball by a lot?

I leave that to you the reader!

There are other sides. Yes, groceries have gone up, yet the milk from my supermarket seemed to have been the same for a long time. In these times, even though I feel for the farmer, the fact that milk remains affordable is a good thing for me, as many other things go up. So even though the groceries, which is a chunk out of anyone’s budget seems remain almost stable, the overall cost of living did go up.

The second increase is the cost of one’s credit card. Most people, if they have a job, they tend to have a credit card. When I got mine, it came with an awesome 9.9%. And for a time it stayed there. It is now a little over 13%. This means a plus 3% rise, I am not blaming the banks (even though I would love to do that). When we consider rent, travel and credit cards, three of the most common items used, is seems that the 1.7% annual increase is just a tale, for the simple reason that most of the other stuff we daily need did not get cheaper and our regular cost of living went up by a lot more than 1.7%

So who did she write the article for?

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August 30, 2013 · 14:23

Tactical choices of inactivity

I reckon that many are awaiting the events as they are unfolding currently in Syria. Will we be investing in Boeing Defence stock, should these missiles be used? (At $1.2M a pop that would mean a nice increase of revenue for Boeing). Will we change our investments in oil and gas as the Syrian situation continues?

These are the questions that matter. The hundreds of deaths because of a chemical attack do not seem to matter.

Are you wondering why I have that opinion?

Then read the BBC quote in regards to these attacks. “The United Nations Security Council said it was necessary to clarify what happened in the alleged attack, but stopped short of demanding an investigation by a UN team currently in Damascus, following an emergency meeting on Wednesday evening.” This was published on August 21st.  So there was a chemical attack and the UNSC did NOT demand the immediate investigation in regards to chemical attack deaths. The worse matter was that the bulk of the casualties were all civilians.

But where is the case of what matters?

If we look at the UNSC charter we see the following “The UN Charter established six main organs of the United Nations, including the Security Council. It gives primary responsibility for maintaining international peace and security to the Security Council, which may meet whenever peace is threatened.”

So clinically we see that they are not an issue. Peace was not an issue in Syria at all. It stopped existing well over two years earlier. The UNSC is set in a charter. They are called the “Provisional rules of procedure of the Security Council” (at http://www.un.org/en/sc/inc/pages/pdf/rules.pdf). They actually do not help that much, only to illustrate certain steps. Yet, this is about the procedures of the UNSC, this will not help at all. So where is their decision making tree? For that we need to take a look at the charter of the United Nations. I took a specific look at Chapter VII: Action with Respect to Threats to the Peace, Breaches of the Peace and Acts of Aggression.

The premeditated crux is set in Article 45 which states: “In order to enable the United Nations to take urgent military measures, Members shall hold immediately available national air-force contingents for combined international enforcement action. The strength and degree of readiness of these contingents and plans for their combined action shall be determined within the limits laid down in the special agreement or agreements referred to in Article 43, by the Security Council with the assistance of the Military Staff Committee.”

So we need to look at Article 43, which actually does not help us that much. That part is about making available troops “in order to contribute to the maintenance of international peace and security“. I think we can agree that that part is at least two years late, and nothing here gives us a pass to start anything AFTER chemical attacks.

 

Yet we see in that same chapter that Article 51 (partially shown) states: “Nothing in the present Charter shall impair the inherent right of individual or collective self-defence if an armed attack occurs against a Member of the United Nations” This is all very nice, but Syria is not a member state, which makes this all a little moot. In addition, this is a civil (local) war, so other member states are not in question.

So let’s take a look at ‘Customary International Humanitarian Law Volume I: Rules‘ (at http://www.icrc.org/eng/assets/files/other/customary-international-humanitarian-law-i-icrc-eng.pdf).

Rule 11 states “Rule 11. Indiscriminate attacks are prohibited.” Ah! Now we are getting somewhere. Even the rules of war have some level of distinction, yet for the most; this is all based on the previous Article 51, as is quoted “The prohibition of indiscriminate attacks is set forth in Article 51(4) of Additional Protocol I.” Darn! I am caught in some sort of looped program. It reminds me of my very first program I wrote on the Commodore VIC-20 in 1983.

10 PRINT “You are crazy!”
20 GOTO 10
RUN

Ah! The simple old days, how I miss them at times.

The same book lists an interesting part on page 38. “several States invoked the prohibition of indiscriminate attacks in their assessment of whether an attack with nuclear weapons would violate international humanitarian law.9 When the ICRC appealed to the parties to the conflict in the Middle East in October 1973, i.e., before the adoption of Additional Protocol I, to respect the prohibition of indiscriminate attacks, the States concerned (Egypt, Iraq, Israel and Syria) replied favourably.10”

9 See. e.g., the pleadings of Australia (ibid., § 65), India (ibid., § 77), Mexico (ibid., § 85), New Zealand (ibid., § 86) and United States (ibid., § 99).
10 See ICRC, The International Committee’s Action in the Middle East (ibid., § 139).

Yes, I agree that a chemical attack is not a nuclear attack, yet when I was taught the elements of NBC (in army days long ago), we tended to count the Nuclear and the Chemical similar to some extent. The Biological element is one that might be considered to be one worse than that as it can continue its damage and even transcend borders.

So we can now add a look at additional protocol I, especially as Syria was one of the parties who replied favourably. As such, we could see Syria as a party that accepted these rules (to some extent).

You see, these parts underline the part as set in Rule 13 (from the IHL), which states “Rule 13. Attacks by bombardment by any method or means which treats as a single military objective a number of clearly separated and distinct military objectives located in a city, town, village or other area containing a similar concentration of civilians or civilian objects are prohibited.”

This my dear readers includes ANY level of chemical attack, as that form of attack that is utterly indiscriminate as well as encompassing the area as one military objective.

Taking into account these elements, why did at that point did the UNSC, as stated by the BBC in the first mentioned article “but stopped short of demanding“. The stopped short in these elements were utterly unwarranted, in my humble opinion.

Now we all watch a political runaway train disaster where politicians stop short of acting in the United Kingdom, the Netherlands, Germany and France await ‘evidence’ which they can deal on. The one cowboy state (the United States) would be at present the only hope the Syrian population has for now. Are these nations correct in holding of? Well, they do have a case there. However, the evidence as UN investigators were delayed, the possible evidence on how the chemical spread started. If we take the elements we have, then we need to consider the firing mechanism. That part had been made near impossible with 5 days of bombings. Yet, in all honesty, did Assad do this? The question is important for two reasons.

1. If he did not do this, was it an intentional act?
2. What other intelligence has Assad silenced?

The two are related, because the earlier fear the US had is now truly coming to fruition. If these missiles were inadvertently fired by the opposition forces, the theory I have is that as they lack military expertise, they might have known and partially learned how to fire a SCUD, but did they know about the payload? Let us not forget that many fighters are anything but military trained. Even those who had training, it is possible that they had too limited knowledge on how to work and identify these types of equipment.

The danger is that they might have found chemical payloads, so here is the danger. Al-Qaeda is currently helping the opposition forces. We now have a trained AQ with support from people lacking knowledge, and they gave AQ access to a chemical storage area. Here is where it becomes dicey! Assad knows the assets lost, he is playing high stakes poker by keeping these locations a secret. For him it is a win-win. If the opposition figures it out they have a time-bomb they cannot use. AQ will use it no matter what and preferably on Israel. Whichever of those steps happened (when they do), the world would have no option but to remove his enemy for him.

Proving that Assad did the actual firing is almost non-provable. The evidence is scattered and at best we can see that NBC components were used, but by whom is less of an option which will leave doubt.

Time is on the side of Assad and elements stopping activities to attack, whether justified or not will only strengthen Assad’s position. I can side with the politicians when they claim that they do not want another Iraq, yet when we look at the initial quote from the BBC “but stopped short of demanding an investigation by a UN team” we must more actively wonder what it would take for them to get anything done. It should be seen as tactical inactivity of the very worst kind!

 

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August 24, 2013 · 14:41

Fair trade or trade fairy?

Cavendish Elithorn was on Sky news today. As the speaker of the office of fair trading, who is now coming out in regards to the practice that people see all over the world. We saw several issues in the news. There are mentions of ‘reference pricing’ where we see the ‘was’ and ‘now’ price, which in some cases is 50% less, or the after sale price where it is now 50% less, until the sale ends, where at that moment you will pay twice the price. The news casts speaks that at the higher price only 5% was ever made.

My issue is that even though it is great that this is done, yet is it a fair trade issue? Do not get me wrong, I think in one part it is, yet, can we act on this? This issue is especially questionable when we are hit through the internet with these same practices on a daily basis? Then there are for example the infomercials like Rapid Loss where we heard again and again to ‘respond within 15 minutes because this could be the last time this offer appeared‘, which of course is not the case as the same offer is given weeks later. The final example is the one that really gets my goat. We are talking about Ethical Nutrients when they claim on TV “You would need to eat 1.23 kg of snapper, or 1.1 kg of tuna, or take nine standard2 fish oil capsules every day or one teaspoon of Ethical Nutrients to get the required dose.” That pretty much implies that Arthritis correlates 100% to the population has NO ONE can afford that much fish. Even their web page title is ‘debatable’ It stated “How Much Omega-3 Fish Oil Do You Need For Arthritis?” (at http://www.ethicalnutrients.com.au/content/how-much-omega-3-fish-oil-do-you-need-arthritis) is this to get Arthritis, or to prevent it? These matters are not a case for fair trade?

We are getting in a field where many of these shops are going on a slippery marketing path to stay afloat, especially to survive against certain on-line presence that can change or reword visibility at a moment’s notice. Many of the smaller dealers might not like the fact that these mega houses, who can set prices of retail reference and actual price all by themselves, yet, consider the fact that this path had been walked by many of the A-brands for a very long time (several have been doing this for over 30 years). Consider the pricing in shops dealing in items from places like Lenovo, Sony, Samsung, Philips, Blaupunkt and that list goes on. So, when (or likely if) we see this case going forward we need to ask certain questions.

How will Cavendish Elithorn police the other areas too?

If not, he might not have a case. Not because of the reason quoted as “They are doing it, so why can’t we“, because if a small group is guilty of speeding, the rest is not allowed to speed either. The issue is that the small group that is speeding do not seem to be dealt with at all. There are often too many complications to these kind of cases, like the complications of dealing with internet cases to name but one, the fact that they are doing it short term and by the time the office of Fair Trade gets around to them they retract (or rephrase) the campaign and as such there would be no prosecutable case to begin with.

Do not think that the OFT (Office of Fair Trade) is a toothless tiger, or that they are fighting windmills. That part is clearly shown by the BBC at http://www.bbc.co.uk/news/technology-22109188

A situation where kids are pressured into buying extras on web games that are now pushed through smartphones, Facebook and stand-alone games that are played on tablets. This is a dangerous situation where parents get confronted with hundreds (some even thousands) of dollars in unwanted bills. There is even a new danger developing. As some makers publish several games, the fact that they now link to one another, stating that you get a special reward in ‘game 1’ if you get to a certain level in ‘game 2’ and so on. I found a maker linking 5 games to each other in that way. How long until children suddenly purchase certain amounts in several games, or even in 5 games? Let me be clear here. This is not about a few who are addicted to gaming, but the bulk who do not realise the consequence of certain costs and pressing ‘OK’ in certain places. Part of this goes beyond just ‘fair trade’, not unlike your daily required need of 1Kg of tuna; this is about levels of ‘miscommunication’ where children and at times adults where pressing ‘OK’ would end up having severe financial consequences. This issue is even more unacceptable as these makers seem to point to iTunes as a policing authority (or enabling authority) for in-app spending, instead of standard disabling in game purchasing from the start and requiring specific acts to enable spending money for these special in-app forms of currency. However, that is likely to be regarded as ‘bad’ business.

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August 19, 2013 · 22:11

Tax evasion, copyrighted by Vodafone?

If we look at copyright in the UK, then according to the UK copyright service, which states that “In the case of business ideas, it is again the recorded work rather than an intangible idea that is protected. Copyright would apply to items such as written documents, artwork, etc. – i.e. a Business plan, promotional literature, website, logo, and such items could certainly be registered.”

From that point of view, the creative tax efforts by Vodafone could be seen as an original work of ‘art’ (by lack of a better word), yet are they alone and are they really the first?

Yes, there is so much frustration in voices of people all around me as I hear them complain about the too fast rising cost of living. The fact that I saw an article last week in a newspaper stating that the minimum income for getting a mortgage in London now exceeds a million pounds, which I reckon is some new record to fight. So as many, who dream of a place around Swiss Cottage or Bond street (to keep the Lord’s Cricket grounds within walking distance), we see that this new price tag makes London an affordable place, mainly for Bankers and dealers in amphetamine based chemicals and that is pretty much it. So when these realities hit us and we see that a deal is struck with Vodafone for hundreds of millions of revenue (for the goal of non-taxability) made by what was described as an empty office in Ireland, waves of anger hit many people. This could be seen as a sign that the rich will get richer, at the expense of everyone else.

But is that the actual truth? It seems more a sign of the time than anything else. Vodafone is in pretty good company. They are actually one of the smaller players when we consider grocery shop sized companies like Google and Amazon. It gets to be a lot more hilarious listening to MP Margaret Hodge complaining about it to Google (in May 2013), whilst she is directly connected through family to Stemcor who is having the very same artistic approach to the payment of taxation (or lack thereof). The Telegraph in November 2012 reported that Stemcor, which reported revenue around 2.1 billion with a reported profit of 65 million paid a mere 163,000 pounds in taxation.

Whoever came up with that idea was worth his weight in gold and gemstones in the eye of these corporations.

It does not end there and it goes far beyond the borders of the UK. Consider the following. A software company has an item prices at ‘X’ and then adds consultancy valued at ‘Y’ and the total being ‘Z’ is charged.

So let us take a basic approach. The customer wants the package which requires software and a consultant and is willing to pay 100, consultancy is set at the basic price of 80, which means if the disc could be valued at 20, the price is met, and as such the customer is a new and happy customer. Yet, the books would reveal that even though 100 is truly placed in the books (as a package deal), the disc value is now set at 70 and the consultants at 30, 100 remains the fixed set price. It is interesting that the 70 is set towards the foreign owner of the program and a value of 30 remains behind. Of course the consultant was more (a lot more) expensive, and as this is all within one corporation the consultant will get his monthly income. Yet, was there a case of tax evasion?

It becomes an interesting debate, more important, it becomes the environment of global corporations and even more interesting is where the revenue and taxable revenue should be placed. I would share the view that this is more than a sign of the times; it is now fast becoming THE sign of the future.

In the age of technology today, many government types (PM, MP’s and exchequers alike) might look at certain developments of ‘new technology’ moves, as corporations go to the cloud and digital distribution, yet there seems an apparent lack of ‘comprehension’ is not the right word, perhaps it is ‘realisation’ that all these revenues would no longer be taxable and Microsoft is not even close to being a frontrunner. At present Adobe is far in the lead there. Consider all these advertising and publications houses, they are in abundance in the UK and those houses have moved to some extent, or are largely moving to the Adobe creative cloud, software, that is no longer sold in the UK, costs that are paid for in the UK and are therefore tax deductable revenue, which is shrinking the UK government revenue pie chart by a lot, especially as revenue from the other side of that equation is no longer in the UK for any level of taxation.

Whether we realise it or not, the old tax deduction scheme was designed on some level of equilibrium. We had tax deductions on one side, because we bought certain items like hardware and software. Hardware is now no longer the expensive post it used to be and the software part that is still steep in some cases is no longer bought, it is leased. As such the equilibrium is gone and a nation cannot continue on one side to hand out deductions as the other side of the scale no longer exists. This gives us two dangers. The first is that certain parts would lose deductibility as the other side stops existing; this should be seen in the light that the cost of business is going up, whilst revenues will not get better. This approach is set by the bulk of cloud providing ‘solutions’ and that group is growing really fast. If the UK government (not just them) loses out on taxable revenues exceeding 15 billion pounds on software alone, where will they get the money from? When we consider the trillion pound debt, then we should worry about such changes and it is not just the UK who is facing them. These companies as mentioned before are doing this on a global scale, which means that Europe is getting hit hard all over the place and it is not unlikely that as cloud servers are placed all over the planet these companies will move into new group that could be labelled as ‘the global non-taxable core of corporations’.

In the past I proclaimed strongly that when we saw the information about Microsoft with their Xbox One approach and the cloud was not about gamers. Gamers do not warrant the implementations of over 300,000 servers. Yet, add the earlier mentioned events to the equation and we end up with a global customer base of software and as Microsoft stated it themselves, an entertainment provider of TV, Movies and Software, all in the cloud! As we see the situation now, likely less than one tenth of a percent might end up being taxable. In that same light should you wonder why NTT DoCoMo was so happy to get into the Indian market, then here is the evidence. Out of a very rough estimation (by me) of a total value of entertainment products that is cloud distributable which exceeds 350 billion (business and entertainment products), consider that these products would in future yield less than 0.5 billion in tax revenue on a global scale. This means that national infrastructures on a global scale are about to get hit really hard (unlikely before 2014). So as NTT DoCoMo starts streaming 4G based entertainment solutions, a massive amount of taxable revenue would no longer end up being taxable at all. So long Tax department of India!

It was exactly for these reasons that I advocated an approach where taxability of services are charged on the consumers side, to avoid the pitfall many governments are about to get faced with. That approach would end the dangers of Google, Amazon, Vodafone et al to walk away with a ‘non-taxability’ based commission solution.

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August 16, 2013 · 13:16

Political ego and their costs

I recently wrote a little about the Dutch Fyra train, a high speed billion Euro train that is still not functioning. There have been several pointing fingers, yet why is this such a complicated project?

You see, a project is basically a simple thing. It has a goal, it has requirements, it has noted milestones and if the project manager is a clear communicator, then that person has the easiest and best paid job of them all. That is the theory!

The reality is less clear. It becomes an increasing mess, when those in charge make oral promises and not follow them up, or even better, in some commercial corporations where sales executives make so many changes on the fly to wear the project manager down, so when things are asked, those sales executives respond with “where is it written down?” and the problem of it all remains in the clear. This latter example happens in several situations where the Sales department and not the project manager is in charge.

With Fyra there is a third tier, namely the politicians. The NOS reported last night that this group had been putting pressure on the Fyra project. Even though the testers reported massive amounts of events, flaws and even clear malfunctions and design flaws, they seem to have been ignored. These issues add up to a system that should not have been implemented. The political pressure that required ‘high speed train revenues’, in the light of spending was getting louder and louder. So over the heads of those people in charge stating that there are issues, the Fyra was implemented against the technical proven flaws.

I discussed the fyra in a previous blog called ‘Multi billion train ride’ on June 5th.

Now they have a situation where a train was accepted in this light of events and in that same light must be paid for. The Dutch rail roads do not want to pay and AnselmoBreda is telling them to pay. Even though it was never completely a fault by AnselmoBreda, there are more and more clear indicators that political interfering by approving something that was not ready seems to have been a clear interfering factor. So apart from the 7 billion in rails, they are looking at an additional half a billion for 19 additional trains that do not do what they are supposed to do. Basically, they would end up being regarded as VERY expensive non hi-speed trains. Then there are the annual interest and maintenance costs on 7 billion of rails, the list grows on and on. Consider these costs whilst the government needs to push 6 billion in cut-backs. Are you having fun yet?

So basically, a multi-billion Euro push, by politicians, who were guided by ego and a misguided sense of profit, the second factor was never a reality to begin with. If we consider this and see that under current conditions the Hi-Speed trains are not an option, then an additional 7 billion has been wasted. I personally wonder how many people will become non-accountable and in addition will be reason for a massive bill to the tax payer. Considering these events, the upcoming parliamentary committee might take a lot longer than many bargained for, which additional costs to boot.

So why are incompetent politicians getting in the way of sound business?

This claim is in this instance not about the present group, it was the previous groups interfering with this process, yet overall when we read some of the current statements on capping banking incomes, and then when it is decided that the new head of Robeco must get 30 million a year, nothing can apparently be done. Ah, the joy of claim versus reality!

There are several indicators that the UK’s version the HS2 is on similar tracks. As reported by the Guardian in July, there have been voices that the high speed North-South line, which will cost to the scope of 40 billion Euro is going in a not dissimilar direction. Even though the UK government is claiming a 20% nett return, the additional factors might have not been weighted enough. Consider that the current issues involving price hikes for train rides are growing between 4% and 9%, the group that can no longer afford these kinds of prices is growing fast. More important, these price hikes are now pushing people away from rail and towards buses for the sheer cost of it. This is an entirely opposing reaction to what the UK government needs it to be.

Those in favour of HS2 claim in the quote “This is a massively misleading oversimplification because it doesn’t take into account the significant financial returns that will be generated from an investment in high-speed rail.”

Even though it is given that unlike the Netherlands, the distances in the UK make for a much more viable need, we should not negate that this is about connecting London to Birmingham. I agree that it is too simple to state that this line is for all those Ashton Villa fans in London, yet the same flaw is shown, when we consider the actual issue. If the distance is 119 miles, then a normal train at 125Mph does it in just under an hour, then why add 40 billion to install a train doing 155 Mph? Getting there 10-15 minutes faster does not warrant such expenses, more important, considering the economic charges, the group willing to pay such an extra amount to get so little extra time would be dwindling a lot faster than some might think, which beckons the question “What significant financial returns?” it is not until the train goes beyond 200Mph that this all becomes a more interesting issue, which means a 20-25 minute saving on that part alone. Here I agree that some (not all) will consider it. The question becomes how much extra will people have to pay until the 50 billion returns is begotten? In my mind that requires a commuting population a lot higher then it seems to have, or the tickets will become extremely pricey to say the least. In my mind, the wisdom is in the middle, it takes a massive amount of traveller, all paying top pound a day. Considering that the economy is nowhere near that strong in the UK until past 2016, the costs involved might be way too high. This all in the end gives weight to the statement made by the Institute of Economic Affairs calling it a “political vanity project“.

So which cheques are underwritten by a political ego and can people afford the consequences of such amounts?

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