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.

Leave a comment

Filed under Finance, IT, Law, Media, Politics

Tagged as , , , , , , , , , , , , ,

August 18, 2013 · 11:56

Milking a global event again

Sky News reported during the night a new ‘revelation’ involving the death of the late Princess Diana. If we consider the clinical part, then it makes every bit of sense that the police do not throw information away at a moment’s notice. Yet, here I think the time has now come to take a critical look at certain events.

What pushed these events to come forward now? It is time that certain individuals are held accountable for acts they undertake and the time has come to hold certain choices accountable for prosecution.

I would even go as far as to make this now a mandatory actionable situation for both MI-5 and MI-6, taking this beyond the scope of normal parties like the Metropolitan police (or their special units) and those involved in operation Paget.

The article at http://news.sky.com/story/1129902/dianas-death-police-passed-new-information states “It was passed to the police by the former parents-in-law of a former soldier, according to Sky sources.” Operation Paget had taken 3 years and costed 3 million pounds. Personally, I think that the 3 million pounds are not the issue, the fact that in those days, the press was so happy to get every nut job with a new conspiracy theory their 15 minutes in the spotlights to fuel more and more publications. I believe that family and friends of Miss Diana Spencer have suffered for far too long and as such I hope that the following happens.

If the information is strong enough, then the parties involved MUST be prosecuted for perverting the course of Justice.

The elements are:

  •      does an act (a positive act or series of acts is required; mere inaction is insufficient)
  •      which has a tendency to pervert and
  •      which is intended to pervert the course of public justice.

For the UK the precedence is Murray (1982) 75 Cr. App. R. 58

The allegation gives weight that a member of the British military was involved in the killing of a former member of the Royal family, which means that the accusation alone brings shame to members of the military forces and even a wider group of other parties.

Do these in-laws realise that if proven intentionally brought wrongly that their act holds a possible life sentence in prison?

considering the case Cotter [2002] 2 Cr. App. R. 762, where at [10] was stated “How could the jury infer, in particular, that what the defendants embarked upon was likely to lead to any sort of criminal proceedings or investigation which would have a tendency to pervert and bring about an injustice?”

I believe that there should be in addition the investigation whether the press had ANY involvement in this. The simple truth is that this is no longer about ‘freedom of the press‘, this could now become an issue regarding ‘conspiring with another to pervert the course of justice‘, if any member of the press would be found involved then this becomes an entirely new deck of cards to deal with.

There are others who would have a case if the information is proven to be fabricated.

There are the family members of Sir David Rolland Spedding who passed away in 2001. Sir David was running MI6 at that time and in view of the importance of the deceased, MI6 would have had to have investigated this for the reason that if the event was not an accident, then it stood to reason that there could have been a danger to the Royal family.

The three year investigation through Operation Paget led by Lord Stevens of Kirkwhelpington as well as a truckload of members of Scotland Yard, all working hard to find out what had happened. Even though I reckon that they wasted months and months disproving hundreds of fabricated stories that fuelled the press. The fact that this is happening again should be unacceptable to anyone connected to the United Kingdom in any way.

All these persons could have a case of defamation under the UK Defamation act 1996.

If the information is genuine then it must be investigated, if proven that the allegations were false, there must be a prosecution. I personally belief that the CPS has no option to ignore this, consider that under common law ‘perverting the course of Justice’ has the attached label of a maximum life in prison means that this is a crime as seriously regarded as murder. This circus has gone on long enough and in the end it is important that a clear message is given.
The message is “Enough is enough!“

Leave a comment

Filed under Law, Media

Tagged as , , , , , , , , , , , ,

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?

2 Comments

Filed under Finance, Politics

Tagged as , , , , , , , , , ,

August 15, 2013 · 23:35

My Prediction was spot on again

On August 14th the NOS reported exactly what I expected them to do. The economy was again slightly worse of then they thought it was going to be. This time they finally go one step further, they are now stating that it will not be that good either next year. Really?

According to Minister Dijsselbloem it was a structural problem and he points at the housing market as one of the reasons and 8.7% of the population is now unemployed. They expect now a 1.25 shrinking of the economy, which is not that much of a surprise! However, they do predict a slightly better economy for 2014. Which is not really true, but as they keep on bringing the same wrong news, they will get it partially right in 2015. So, I wonder how quick the bad news will hit the Dutch population, and in addition get more bad news before the budgets have been completed. They have 2 weeks to make a decision on what happens to SNS (which is due before the governmental budget is set) and with the 6 billion in cut backs they will then, not unlike actors come with a tear on their cheeks to ‘sell’ this bad bank option and voilà! The Dutch tax payers get another added 2.4 billion Euro in debts.

This option had been on the forethought of their minds considering the confidential paper they left open on the internet (at http://www.rijksoverheid.nl/bestanden/documenten-en-publicaties/kamerstukken/2013/02/27/07-non-paper-financien/07-non-paper-financien.pdf)

The NOS did mention that the negative steps are getting smaller and smaller. They state “the worst is over“; I personally think there is pretty much nothing left to shrink at present. The Dutch must start to realise that they are getting to some extent a ‘baked’ level of information. They mention some options to finding creative solutions and interesting enough, they steered clear from pensions. According to the NOS the government is pretty much ready with a presentable solution and the Dutch present their annual budget on ‘the day of princes’, which is on the 3rd Tuesday of September, some might think soon enough, yet the options left to them might be less then they expect with the impending bad bank shifts and a possible rehash of regulations opening up pension funds for what I would negatively call ‘waisted spending’, especially when you consider that this will be the third administration that is unable to keep a budget.

Considering these facts is why I believe that the current opposition has no right to complain, especially considering the words of Sybrand van Haersma Buma (CDA). Let us not forget that cutbacks were needed in 2009 when the government was in the ‘majority’ hands of the CDA in those days and when Germany tightened the belt when needed, Dutch politicians decided not to follow, as their projected economy did not warrant it. If they had stepped up to the plate then, the Dutch would not be in this bad a predicament today. Yet, even now their bad news is not complete. When we consider the British predicament, then they should consider, that even though their economy seems to be picking up, George Osborne admitted to the quote “the chancellor accepted for the first time that the UK’s debt would continue rising until 2016/17” (from political.co.uk). This means that with a Trillion plus in debt, the economy is in for hefty austerity measures until 2020, from that view we need to realise that hefty cutting costs in the Netherlands are essential, should they consider any decent level of growth before 2015, simply because both nations have been unable to properly budget their spending.

 

Leave a comment

Filed under Media, Politics

Tagged as , , , , , , ,

August 13, 2013 · 12:31

Bankrolling a politician

The guardian made me aware of an interesting twist in Australian politics (at http://www.theguardian.com/world/2013/aug/12/singleton-funds-sporting-candidates-election). The information as presented yesterday evening is that the overly wealthy John Singleton will be ‘bankrolling’ (perhaps sponsoring should have been a better word) two sportsmen Nathan Bracken (Cricket) and Lawrie McKinna (Coach of the Central Coast Mariners). Let’s take a look at the two.

To be honest, supporting Lawrie McKinna makes sense from the fact (even though I have no personal knowledge of the man), that he currently is the Mayor of Gosford, which for my non-Australian readers is a Town to the north of Sydney between Sydney and Newcastle. So, he has experience in the political field being the mayor and as a coach the man knows how to deal with a bunch of ruffians, which pretty much makes him ready to become the next Australian PM. Nathan Bracken is another story. He does not seem to have any real experience; however, that in itself is not an issue. As this is an election year in Australia, we see all kinds of people coming out of the woodwork, with the odd politician not having the ability to identify any issues he stands for. The latter part was quite the giggle for the Australian Facebook community. So there is no way that Nathan Bracken would do any worse and we all have to start at some place and some time. John Singleton will be sponsoring these two new contenders for the Independent party.

How bad is this idea?

John stated that he is fed up with the central coast being ignored. He was quoted in the guardian article stating “someone has to keep the bastards honest” and when we consider politicians on a scale slightly larger than just Australia, there is a genuine support for that statement.

The issue does remain if there is not more in play. Singleton has massive interests in the Central coast, which are after all his own stomping grounds. Real Estate, resorts and a race horse operation. So we are talking an investment value that is running deep into the 8 figures. In a business mind having 2 politicians on your side is good business, which is why I as the devil’s advocate am wondering whether there is not more in play.

To be honest, he is not hiding his involvement (like that was ever an option), yet there will forever be a little shiver in my spine when politicians are knowingly funded by a ‘party of one’ and to whisk such that feeling can never be good. Singleton might have stated “It can do no harm and it can only do good”, but that is one part I feel, which is too often never the case.

Still, we have had several remarkable exceptions. Dick Smith for one, who has put his money where his mouth is, donated tons of money on all kind of good causes, whilst not cashing in on it in the past. Singleton too has been involved in charity events from the early 90’s. Australians are for the most, not that greed driven like we see all over Europe and America. These people made their fortunes long before 2004 and they survived the financial crash without a too much of a hitch. They have more than enough money and they likely realised that they can’t take it with them where they are going to go in the end (a lesson the greedy never learn).

Still, there is a dangerous precedence here. I am all for people getting into politics, especially if they are bright enough and when their past (sports, movies) give visibility to causes and goals the people really need. The issue I have is when one sponsor becomes deeply involved, even when the person involved does do this openly, it keeps me worried.

The article does however seem to speak true on some issues. The Central coast seems to be ignored too often, not unlike Sydney it has youth unemployment. Not unlike the NHS, they have their healthcare issues, which seems to affect all of Australia and the youth suicide numbers are rising all over the place, which includes the Central Coast. So the fact that Singleton wants this dealt with on his stomping grounds is fair enough, yet no matter how fair it is, I remain to some degree sceptical for the simple reason that in the majority it is too naive to believe that large political donors will not expect certain favours, a view that is held by a lot more people than just silly old me.

 

Leave a comment

Filed under Finance, Politics

Tagged as , , , , , , , ,

August 11, 2013 · 13:48

The Soccer ball and other sports

This morning, I was woken up with the information in regards to ‘concerns’ in regards to the world championship soccer. I have never been much of a soccer fan, even though I was born in the Netherlands. It was never my cup of cacao.

When I heard of the concerns, I thought that made perfect sense, then my eyes saw the pictures of the stadium. I think they are concepts, not unlike other images that Google showed. No matter which one will be build, these stadiums are amazing pinnacles of design. It left with me that sparkle I had when I saw the first images of the Munich Olympics in 1972. It was overcast by events that will remain a black page on sporting events forever, but the stadiums looked amazing.

So is this about the stadium? Not quite!

As we introduce sports to other parts of the worlds, the sports will take on a new dimension, this is equally the case now that soccer will be hosted by Qatar (in 2022). It brings small changes. I saw the concerns and I do not disagree, yet what are the alternatives? Play a game at dawn and a game at night? Play only late at night?

Are those not alternatives? The nights can be cool in the Middle East, I experienced that first hand for months, so moving the cup date until late autumn, or perhaps early summer/late spring?

These are all options, yet the first thing I heard stated when the winter option was given, was that it could interfere with the FA Cup. (The Dutch are likely to state the KNVB cup). So is all this about the cup itself or the issues surrounding advertisement revenues?

The World cup is only once every 4 years, it’s not like it is a daily exercise. Qatar is also the consequence for growing the sport. They won fair and square and it was voiced (and I do not disagree) that it should be held there. Yes, player safety need to be on the forefront of considerations, which is why moving the event to a non-summer month is a good idea in my mind. If we look at www.weatheonline.co.uk we see that March to May, if the matches are early or late in the day seems to be the best, after that it is likely to be October to December (which might not be ideal for others). The days might be warm in these instances, yet the nights are definitely not warm, so there should be quite the cooling when the sun goes down.

I do find this situation interesting, with 209 FIFA nations, this is the first time that players will be subjected to these tropical conditions. Consider these tropical nations playing under what they would consider Arctic conditions? These players in a rare twist of fate will have the home weather advantage, and if in the end Scotland or Sweden take home the cup? What a party that would be!

In the article I disagree with the quote “His predecessor David Bernstein said in June that any plans to move the World Cup to the winter were ‘fundamentally flawed’.” (At http://news.sky.com/story/1126848/fa-boss-summer-world-cup-in-qatar-impossible)

Flawed by what reasoning? It is a given that his concern was the FA cup, that is fair enough, but this is the FIFA world cup! Yet, in all honesty, I cannot truly oppose his statement as it would disrupt national cups in many European nations, which is a truth. Yet, the idea becomes, why must we tailor to get it all? Should these players be subject to 64 additional games at all cost? Seems to be a little one sided. However, moving it to spring could be an idea too. I reckon that this could work if we take the sport into mind. Many cup officials in several nations are now playing with Excel to see the advertisement and sponsor ‘damage’ that is a direct consequence of these events.

That part seems not to be too ‘illuminated’ at present. Yet when we read the Telegraph (at http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/8552114/McDonalds-joins-Coca-Cola-and-Visa-in-calling-for-Fifa-change.html) we read “McDonald’s joins Coca-Cola and Visa in calling for Fifa change“.

It seems that these three are adamant in maximising their view at every expense (bang for the buck approach), even at the expense of sports. If Jamie Oliver is to be believed, then the hamburgers from McDonald are not for human consumption, so why are they a party to sport advice at all? In the article by David Warner at http://politicalblindspot.com/hamburger-chef-jamie-oliver-proves-mcdonalds-burgers-unfit-for-human-consumption/ the quote is: “After Oliver showed how McDonald’s hamburgers are made, the franchise finally announced that it will change its recipe, and yet there was barely a peep about this in the mainstream, corporate media.” This can be proven with the Google search terms ‘Jamie Oliver on McDonalds‘. There is no guardian or other large newspapers and the one result link from Google mentioning the Telegraph states “Jamie Oliver praises McDonald’s – Telegraph“.

You might wonder how this is all connected. The answer is simple: ADVERTISEMENTS! (aka revenue)

There are issues on several levels and these companies have so much pull that through advertisements they have pull with what is written. Consider the fact that the large players (Guardian, Washington Post, LA Times) are not for, or against, they just don’t seem to appear in the first load of result pages at all (according to the Google search).

The issue I am raising is that this all seems to be no longer about the sport. If it was then those ‘big players’ would accept the elected choice and accept the unfortunate event of one year less advertisement revenue (yeah right!).

The next issue is actually entirely the opposite. I am disgusted on the horror Russians perform on the Russian Gay community. The fact that these people get tortured and murdered and the torturers take pride in publishing pictures of the event is utterly unacceptable. So I understand the fact that people speak out against this level of violence. Especially Stephen Fry made a clear case against the Russian Winter games. If you support this then give support him and follow him on Twitter (@stephenfry). I support him, but I am personally not in favour of banning or stopping the winter games. For me the view is that once we intertwine sports with political causes, no matter how just or correct they are, then the one door of change might close permanently. Yes, what happens in Russia is wrong, but if citizens who are going there as athletes can instil change where politicians fail, is that not a worthy cause? When I grew up I learned pretty much the origin of the Olympics as it was quoted on Wiki “It has been widely written that during the Games, all conflicts among the participating city-states were postponed until the Games were finished. This cessation of hostilities was known as the Olympic peace or truce.” Is that not how wars were resolved? In case we see America getting involved in this, let us not forget, that if one is gay and not living in San Francisco, often their rights are silently forgotten. The guardian had an excellent presentation of that at http://www.theguardian.com/world/interactive/2012/may/08/gay-rights-united-states

They might not show the barbarism that Russia is currently presenting, yet the political lobby has been using gay rights as a racquetball between Democrats and Republicans for decades. I still feel that in the end, sport will be at the centre of unification. If we see and accept (at least I do) that the African American athletes were at the centre of the equalising force between racial differences, then sports could also be the equalising force for sexual differences.

I just hope that it will be sooner rather than later, because persecution has never ever been good for any soul. That applies for both the persecutor and the persecuted.

Leave a comment

Filed under Finance, Media, Politics

Tagged as , , , , , , , , , , , , , , , , , , ,

August 10, 2013 · 02:09

Look horny!

Seems an odd title to start with, but whenever I see certain reports by boards of directors as they make it to the press, then I am reminded of an old Dutch cartoon called ‘father and son‘ about the conservative father and the progressive son. It was a political cartoon by a man called Peter van Straaten. In one of these drawings a man is standing with a camera whilst the woman is standing not that dressed next to the fireplace, the by-line is ‘Look Horny’. It was hilarious! So was the published remark from the Apple board of directors “Apple’s (AAPL) Board of Directors has grown frustrated at the company’s lack of visible innovation.”

Be innovative in this light is as weird as being horny on command. We can all be innovative at times, but we are innovative with the means at our disposal. In his case this is about vision. Was Steve Jobs the visionary, or was he the man who could recognise it when it was shown to him? Let’s face it; we all have ideas at time. I remember coming up with something that is now called Facebook. Hold on, wait! I am not claiming I invented Facebook. In the late 90’s Warner brothers had these web spaces that were hosted through a provider called Angelfire. There was the Halliwell home, the Babylon 5 home, the Bat cave. All forms of addresses that linked the subscriber to their favourite series, or movie. It was free and it came with 20Mb space. However, it was completely static. I thought it would be a good idea to have something similar and to let these members talk to one another. Our benefit would be that we could talk to them all, a place for free advertising at the cost of one web server and a few additional costs. My boss stated that this was not our mission (which was true) and that this would never work (Really?). I think I still have the e-mail somewhere. I had no other means to pursue this idea and in the end it would never have been anywhere near Facebook, so it does not matter.

The moral is that if your boss lacks insight, things will never get pushed forward. It seems that Steve Jobs had this insight in abundance. Likely he was one of these true visionaries and the timing was right. Timing is all in that field, come a little too soon and it will not happen, come too late and you are a copycat at best.

Does the board of directors at Apple comprehend this?

Perhaps Tim Cook has part of these abilities, perhaps not. Perhaps there is no real innovation to be gotten. Let’s just face that between the cassette, the mini-disc and the iPad there were many years of waiting. The origin of the cassette recorder was around the 1930’s, which was PRE WW2 and would not be a consumer item until decently after WW2. So it took almost half a century to get to the Mini-Disc and almost a decade to get to the iPod. Will it take that long for the iPod to evolve to something truly new? There is no way to tell, innovation comes in many forms and a real breakthrough is needed to shape innovation.

I reckon the new Mac Pro is sure sign that innovation is not dead, this is however nothing more than displayable innovation with to a smaller extent an engineering level of innovation, yet, this is nothing more than a new step forward, not a leap forward onto a new train. As for ‘new’, let’s not forget that Cray had the round professional computer (read mainframe) first, the Cray CDC8600, which was released in the late 60’s, so is the idea Apple had truly innovative? The Cray version came with a bench around it, so where’s my chair Apple!

There is also a downside to innovation the way Apple does it. That part is becoming more and more visible with the iPad. There is now the iPad2 and iPad3. My iPad1 is great, I bought it to use in University and it does exactly what it needs to do and I was until recently quite happy. Developers make applications for the device and I have bought a decent amount of them. However, recently, more and more applications can no longer be updated. Even more irritating is that some updated applications will no longer work and crash as these developers only seem to consider the new iPad’s for testing and not the old ones. More important, new software often no longer works on the old models, so from that we could come to the thought that the innovation of Apple comes at the price where a device like the iPad, must be replaced after two years, which seems an expensive approach for consumers.

Now let’s take a step back. Innovation should not be a hype word. The dictionary states it as: “the act of innovating – introduction of new things or methods.”

So Apple is not really adding anything truly new to their cascading fleet of devices. There is even the idea that in the end this step like approach is a really bad idea. They seem to forget that the economy is in a slump and most of us cannot afford a steplike replacement of our devices.

I reckon the board of directors should also realise that the ‘innovative’ track of Apple has been an expensive one for its consumers; I lost close to $8000, whilst Apple was all too eager not to step forward on their failings and I am not alone. How is that related? Well, when you lose money, until something TRULY innovative comes, why would you purchase that brand? In my case my expensive laptop had to be replaced after only 14 months and as such I did not buy an apple. I am not alone; several around me had such an uncomfortable experience with the iPhone 4 that they have since moved to a non-Apple android solution.

So perhaps their board of directors need to focus on quality of the innovation, not quantity of innovations. In the end, they have nothing valid to complain about. Apple is in the bulk of the homes in one way or another. Whether it is through desktop (iMac), laptop (Macbook Air/Pro) or handheld (iPad/iPod/iPhone). If you talk to 10 of your friends then it is likely that 5 out of 10 have at least one Apple device and 2 out of these 5 are likely to have more than one device. Plenty of CEO’s would sell their first born into slavery for such returns. So in plain words, what are these board members bitching about? Is it truly about innovation or is it about simple greed?

Leave a comment

Filed under Finance, IT

Tagged as , , , , , , , , , , , , , ,

August 8, 2013 · 13:32

The Jay-Z talk

Today’s inspiration comes from a source, slightly right of the middle. It was an interview that aired on Bill O’Reilly which he (or his team) placed on Facebook. Jay-Z was warning for the dangers of escalating violence as the gap between haves and have not’s increases. This is a viewpoint I agree with, especially as I had come to the same conclusion many months ago. More important, that is a reality that is in play in both the US and Europe.

What is to blame? Well, the Financial Institutions started it all and as such they need to be mentioned. I reckon you have all read enough of this, but down the track, this will issue will pop up again. More important are the issues that have been more and more visible over several months. The Obama administration might claim that they have added 175,000 jobs, yet as you would see, this level of misrepresentation will get an ironic side soon enough. The massive spin at present is coming from the industrials. If we see the Dow index, then we look at 30 companies who ‘seem’ to be setting the trend, especially my American readers, have you noticed how 1 out of 6 in America lost their house and an even larger population lost their savings? So, if the economy is so high, then how is it that the damage remains so severe? Well, I am about to answer that.

Those 175,000 jobs, well the bulk of them are only part-time and they are mostly minimum wage options only. To be honest in such a bad economy that could not be the worst, but from my viewpoint there is more, which makes this a lot worse.

It was a little while ago on how some expert spoke with a level of pride that the Dow was so strong, and remained growing due to an increase productivity managed by a declined workforce. So basically, a 90% workforce was achieving 110% result and no one questioned it? The fact that even though these companies are getting record results, no long term hiring has commenced?

Well, here it is. The view I have is that the banks allowed for a shift of policies, which has pretty much introduced a legalised form of slave labour (a harsh reality, but not false). It is a nice irony that this has occurred during the time of an African American president. The first question I should answer whether this assessment is fair. Yes it is!

The reason is that neither President Obama nor President Bush did ANYTHING truly successful to hold these Financial Institutions accountable for the damage they bestowed on the American population and the rest of the world. The fact that even today in most nations strong bank regulations are still not a fact means that this can all happen again. So, when we get to 2020 and we all think that we are back on track, these players could play the same game all over again and we go back to nothing overnight. We might not even have to wait that long as banks all over the EU are now trying to loosen up ties with those controlling pensions of people all over the world.

So Jay-Z is correct. The gap of those who have and ‘the others’ is widening and it is widening a lot faster than you all realise. Consider the enormous debt that the American people got stuck with, with the due compliments of companies like Freddie Mac and Fannie Mae. Do you remember on how ‘something’ was going to get done? Well consider the house resolutions

H.R.1227 Latest Title: GSE Risk and Activities Limitation Act of 2011
H.R.1225 Latest Title: GSE Debt Issuance Approval Act of 2011
H.R.1223 Latest Title: GSE Credit Risk Equitable Treatment Act of 2011
H.R.1221 Latest Title: Equity in Government Compensation Act of 2011
H.R.1182 Latest Title: GSE Bailout Elimination and Taxpayer Protection Act

All these bills have been left untouched since 2011. The story does get a little worse when we consider the article from Bloomberg as published on May 8th at http://www.bloomberg.com/news/2013-05-07/new-regulations-are-strangling-community-banks.html

The starting quote: “The wave of new banking regulations that Congress created to deter and punish Wall Street’s misdeeds is landing with much greater impact on the U.S.’s almost 7,000 community banks than on the too-big-to-fail lenders.”

This gives us the question whether there is a foul stench coming from the big boy enabling group, which is supported by the quote “Federal Deposit Insurance Corp. show that large banks have both the lowest credit quality and the lowest cost of funds in the industry.” If the American people depend on their day to day issues on those community banks, then why are these regulations pushed out in this way? Well, in my view the banks ‘own’ the politicians and the banks decided a let them all suffer until regulations are dropped again, so we can do this one more time approach. This is how I see it.

Yes, banks definitely need regulation and not only in America. However, the need to strangle certain services that caused the bulk of all the grief could be choked more efficiently without placing these community banks in a vice. That would make sense, unless those community banks go the wrong direction of course, so better options could have been found, which makes us wonder where political levels of competency currently are.

Supporting evidence can be found in this article at http://www.bloomberg.com/news/2013-06-20/bank-of-america-and-the-tragedy-of-foreclosure.html

It is as analysed as a he said/she said situation. I think it is a ‘they said’ and ‘it claimed’ situation, but let us not revert to a black letter wishy washy job.

Where the bank claimed “These allegations are absurd, patently false and contrary to Bank of America’s long-standing policy only to foreclose as a last resort when other available options to help keep people in their home have been exhausted,” can be read as true, but that does not give way that this tactic has likely been used and to include the tactic as quoted “stall applications for loan modifications“. One does not exclude the other and as such it seems to me that as more facts become visible, the failed regulations and more important a wrongful push to pressure the entirety of banking, instead of certain services and strangling certain monetary reward schemes (read bonus structures).

So again, Jay-Z has a point!

This goes beyond America. The Dutch SNS Reaal bank is still in levels of turmoil, as can be read at http://www.nrc.nl/nieuws/2013/06/06/sns-reaal-verliest-netto-972-miljoen-in-2012-16-miljard-in-eerste-kwartaal-2013  (Dutch source), it boils down to the last paragraph [translated] “The Netherlands must submit a plan within 6 months for restructuring the SNS. The real estate branch must be placed in a separate organisation. On these submissions the commission will take a final decision“. This was in February and the final decisions are due this month whilst political Netherlands is on vacation.

My prediction is that these politicians will make an 11th hour decision with the humble stance that includes ‘alas’ and ‘we are forced’ and ‘this is by far the best solution’ and they will then push the real estate branch into a bad bank, which basically mean that (please pardon my French) ‘Banking Wankers’ high and low got away with it again and the Dutch tax payers will end up coughing up another 2.4 billion Euro, which comes down to every Dutch tax paying citizen paying a 175 Euro each for a mess that politicians are unwilling to control on several levels. So, these politicians are allowed a vacation whilst there is such a mess? My vacations got cut short twice by two previous employers and these politicians go on vacation making twice as much? Talk about dedication (or lack thereof).

This all boils down to Financial Institutions and Industrials are given the leeway to widen the gap of ‘those-who-have’ and the others, yet politicians remain silently in the background showing the spine of a paperback, not one hardcover amongst them.

Let us to get back to Bill O’Reilly where today’s blog all started. Many do not agree, but I admire the man. He can be right, he can be wrong and I have not always agreed with him, but he has always shown clarity of what he thinks was right. No half-baked answers! The issue with him is that he is another item of proof on the US failing levels. You see, he has a website, a talk show and he has a good (read very good) income. He donates all the profits of those website sales to what he sees as worthy causes, mostly Veteran and serving military and I am all for that. Now, as stated, his income is really good, yet nowhere near what some get. This is clearly shown as annual bonuses on Wall Street rose to a total of $20,000,000,000 (20 Billion) in 2012. So the challenge for Bill O’Reilly is to find 100 people donating to the community on that level, whilst they are not allowed to make over 15 million a year to be allowed on that list, in a population of over 325 million he will fail. So basically he makes less than a mid-level banker and donates a truckload. This man stands almost alone!

That is the evidence, that even though one can be found, many are destitute beyond their control and the people in financial institutions keep on being enabled by the very people who should be protecting those in such an economic state of destitution.

Jay-Z spoke a true word!

When we see what people like Jay-Z, Will.i.am and Bill O’Reilly contribute to communities in such a degree there is evidence that there is still a level of humanity in this world. It would however be nice if the politicians in many nations step up to the plate to make their places a lot better without enabling greed.

Leave a comment

Filed under Finance, Law, Politics

Tagged as , , , , , , , , , , , , , , , ,

August 2, 2013 · 04:22

Fighters to Syria

The Dutch have started a trial against an Iraqi citizen who has been living in the Netherlands for 13 years. Now he is joining the rebels to fight in Syria. In this case the trial seems to be focussing on the mental health status of the individual.

It is an interesting view. In this case it is about people who will become militant, more extreme and the fear is that these people might return to the Netherlands in a more militant and extreme state with additional fear that these events might start a wave of extreme actions.

There is a case that seems to hold water, yet will it hold water in a legal way?

1. The person has not yet left the Netherlands and as such the issues are not proven (at present).
2. If we look back to WW2, Americans moved to the UK to fight against Hitler’s Nazi Germany.

Is this a similar view?

In the second case there are additional issues. These people are joining the fight against Assad. This is an internal civil war. In the WW2 case England was under direct attack by Germany. So there were other issues in play. In addition, these people all joined military fighting units that were part of a sovereign state. That is not the case with the Syrian rebels.

The issue that does not seem to be (overly) illustrated by the news at present, is that in this specific case (in case of Syria) that no matter how good the goal, these people are joining a non-aligned, combatant army. It could be seen as a group of people that are joining a terrorist organisation (from the viewpoint of Syrian government). There is supporting evidence in this case to some extent.

If we consider Humanitarian Law, then we must also accept the laws of war, which limits attacks to “military objectives.” Military objectives are personnel and objects that are making an effective contribution to military action and whose destruction, capture, or neutralization offers a definite military advantage. There is ample evidence that civilian targets have been fired upon. When we take that into consideration, then a government has a clear directive to stop this. It could send its own army to police and structure the events, yet, they cannot engage in war on targets that are prohibited by Humanitarian law. From that point, not only must these recruitment drives be stopped, they also have some level of evidence that recruiting for these tasks should be seen as criminal.

I must keep a little space for the chance that my information is not complete, or even worse, is to some degree incorrect (newscasts from all over the world tend to lower reliability a little). The spreader of the information that we see on the news might not be completely correct, or from a reliable source (not claiming that this is the case, but I must allow for this fact to be the case).

If we consider that then the statements of both David Cameron and William Hague are more than just dangerous. I am referring to a batch of statements that these two honourable gentlemen have made over the last 2-3 months. In that light, it is the statement by the Lord Mayor of London Boris Johnson that seems to be the correct one. (He stated “Britain could not end the conflict by ‘pressing weapons into the hands of maniacs.’“) Even though Humanitarian Law does not speak on the delivery of weapons, the fact that it is known that their weapons are used in transgression of Humanitarian law, even before these weapons had been delivered could bite any nation that delivers these weapons down the road.

The transgressions that are currently allegedly occurring are not from some obscure part of the Customary International Humanitarian Law. No, we are only at rule 1 when we find the collision with the occurring transgressions. So by allowing and not outspoken opposition of these transgressions, we are not giving support to regime of Assad, we are actually flushing our own standards down the drain. If the convoy that was attacked last week by the rebels contained goods as well as people then there is also the transgression of rule 55 of humanitarian law. Furthermore, there is every chance that these foreign supporters, as not being a national from Syria, could be seen, if arrested, as a spy, a mercenary or a terrorist by Syria’s sovereign ruling party. That would complicate matters in several ways and its unlikely that the end solution that the Syrian courts would offer is one that the supporter will be able to live with (like the firing squad).

Whatever choices the UK makes, they should be clear and outspoken on the transgressions of humanitarian law. The Dutch face a similar act to follow. In regard to the court case, it seems to me that in the British Nationality Act 1981 in section 40 it states:

The Secretary of State –
(a) shall not deprive a person of British citizenship under this section unless he is satisfied that it is not conducive to the public good that that person should continue to be a British citizen

This means that, even though it is decently bad Humanitarian law, that if the Secretary of state can place the fact that militants returning to the UK are not in the interest of Public good, they would lose their UK passport before they even make it past UK customs at the airport. The Dutch are less lenient here. In their case you would only lose your nationality is you are convicted for a crime against the Dutch state. It would be very conceivable that the transgressions of Humanitarian law would constitute enough transgression at this point. That part is not yet a given as the current case in the Netherlands is the first one of its kind ever in Europe.

Leave a comment

Filed under Law, Politics

Tagged as , , , , , , , ,

July 31, 2013 · 11:18

Equality should not be a concept

Today my inspiration comes from Sky News and the social media. The issue at play is one I took offense to two days ago. I learned that a Miss Perez had started something that led to the new 10 pound note to be dedicated to Jane Austen. A brilliant step! I had not thought of it. I have the books, I have seen movies from her books and a movie on the life of Jane Austen. She is and should be regarded as the good side of England. Even as a spokesperson for the British Empire she would be a good choice. So, my first thought was to say ‘Well done Miss Perez!’

So when I learned that she was harassed by THOUSANDS of trolls and abusers on twitter, I took offense and I wrote her a congratulatory message. I do not care for some excuses that the socialite media figures take on that these people are doing it out of boredom. It is abuse plain and simple; there is no excuse in my view.

I am a little on the fence when we go out of our ways to blame twitter in this matter. Yes, we should be able to report abuse and spam and with ease. I do however stand behind the person who stated (sorry, forgot to write down the name) that Twitter is a tool; you cannot hold them accountable for abuse of it. To some extent I agree with that view. When a person’s skull gets bashed by a criminal with a wrench, you do not sue the company making the wrench. People kill people, plain and simple.

So women like Lucy-Anne Holmes should have all options and freedom to advocate their cause. Most people (especially male teenagers in the UK) would feel less happy, when ‘aspiring’ models promote themselves on page 3 of the Sun are removed, but equally fair is that others are not drawn to this and will not cry if that space is changed for other information. It was her right to speak out and she did. We might not agree, we are justified to speak out against her viewpoint, but we are not allowed, or should be allowed to threaten her in any way. Let’s face it, she is not the head of <some major social media company> selling our private details. Interesting how no one cares about that!

I cannot even fathom the abuse and threats some use in regards to people speaking their mind or standing up to something they believe in. I do however feel strongly about freedom of speech and they have a right to speak their belief, even if it is not a view I hold. I will even make a stronger case. I reckon that in support to Miss Perez, I would vote that a woman should be depicted on 2 of the 4 notes at any given time. If we truly believe that we are in an age of equality, then should that not be visible in all fields, including monetary? And in this case, in my humble opinion, the picture of Her Royal Highness Queen Elizabeth does not count towards this number. The question then becomes ‘are there famous women?’

Yes there are! (And plenty of them too) Even beyond the art of writing there are scientists like Elsie Widdowson and Kathleen Lonsdale. We could start an argument on the undervalued acts by Rosalind Franklin as well.

Leave a comment

Filed under Media, Politics

Tagged as , , , , , , , ,