Tag Archives: America

March 13, 2015 · 11:35

True torture

This issue started a while before this. The title “Tony Abbott: Australians ‘sick of being lectured to’ by United Nations, after report finds anti-torture breach” is just an incentive for emotion. (at http://www.smh.com.au/federal-politics/political-news/tony-abbott-australians-sick-of-being-lectured-to-by-united-nations-after-report-finds-antitorture-breach-20150309-13z3j0.html).

There are two quotes that need to be looked at: “Mr Abbott’s criticism of the UN follows his attack last month of Australian Human Rights Commission President Gillian Triggs, in which he called the report she commissioned on children in detention a ‘political stitch-up’” and “The United Nations report, by the UN’s special rapporteur on torture, finds Australia is violating the rights of asylum seekers on multiple fronts under the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment“.

I am all for human rights! I think Human rights are important, but what about the people ‘orchestrating’ the message?

Let’s that a look at the message ‘U.N. Urges U.S. To Treat Migrants as Refugees’ (at http://www.npr.org/blogs/thetwo-way/2014/07/08/329774643/u-n-urges-u-s-to-treat-migrants-as-refugees). The message seems to be clear, but what is that message? When we consider the quote “The refugee agency is particularly concerned about the large number of unaccompanied children arriving in the U.S. Washington estimates more than 90,000 unaccompanied children will arrive by the end of September“.

This was the news of last year. You see, what we all ignore (especially Labor and Greens) is that this all has a cost, it does not matter whether it is in Australia, Canada or America. When we accept refugees we accept financial responsibility to some extent. This is the not so nice part if us trying to be good and humane, there is a cost and we do not shy away from it, but we have limits, we all do! With every irresponsible act of spending what none have we limit our options and limit those who we allow in as well.

There is however another side, the side from the UN as we see the title ‘Asylum seeker torture report: United Nations special rapporteur Juan Mendez responds to Tony Abbott criticism‘ (at http://www.smh.com.au/federal-politics/political-news/asylum-seeker-torture-report-united-nations-special-rapporteur-juan-mendez-responds-to-tony-abbott-criticism-20150310-13zrwz.html). The quote “I think we in the United Nations also deserve respect and I wish the Prime Minister had taken my views on this more seriously and engaged with my rapporteurship more constructively” is a defence and a subtitle, also a statement that is not incorrect, but perhaps incomplete. When we see the quote “Among the concerns raised by the report was that escalating violence on Manus Island, and the ‘intimidation and ill-treatment of two asylum seekers’ who gave statements about last year’s violent clashes at the centre was in breach of the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment” issues come to light. Now, it is important that I am not making any claims of dishonesty or that the claims are lies. There would be no way for me to prove it. In addition, it is nice that we get these ‘verdicts’ from the UN, an administrative group where those ‘voices’ are incomes vastly above minimum wage, an income fuelled by other governments, but guess what, EVERY single one of these nations are in debt, not one excluded! Yet, this is not about money, or the income of some of these comfortable living executives. Let’s take a look at some of the elements.

Let’s restate the phrase: “intimidation and ill-treatment of two asylum seekers“, now, I am willing to blindly accept the following:

  1. There are likely more than 2 victims
  2. Let’s accept that in every case it is always both intimidation and ill-treatment

Now let’s take a look at the information form Amnesty international (at http://www.amnesty.org.au/refugees/comments/33587/), where they state the following: “There are currently 1,100 asylum seekers detained on Manus Island, all of whom are men who arrived without their families. These men have fled war, chilling acts of torture, threats of death, or profound discrimination. Many of them have made the desperate decision to make a perilous journey from Indonesia and other countries, including Sri Lanka, to Australia“.

Now, let’s be realistic and accept that more than two people have faced certain ordeals, there is no way for me to clearly find (at present) how many faced events. But if we take 20 people, than the issue revolves around 1.8% opposed to 0.18%. 1.8% might be too large, and I would agree with it, but we all seem to forget that a detention centre like that, is a place with constant pressures and clashing cultures, there are uncertain times ahead for many of these people, so pressures will come to a boil pretty fast in a place like that.

I am trying not to trivialise, but the need for better statistics is evidently required before we start a dictionary war between Australian parliament and the UN, whilst we know that the media is ‘presiding’ both sides whilst they enjoy the benefit of the occurring discord.

Yet, in the end, the actual culprit has not once been named. Oh, evil villain, oh master of the dischordian principle that weighs the loom of infinity unto the hands of fate. I have seen thee oh villain and I name thee………. (wait for it)………. Tax-Man!

Yes, in all the issues of emotion, so many forget that humanitarian aid must be paid for. Humanitarian causes require funds to exist, as do immigration centres, because they are a pure cost for any government. Which is one reason why Greece is getting rid of them tout-suit! In addition, they are so broke they are now returning to the need for WW2 reparations from Germany, which I will not condemn, but in reality, their own Tax-Man did not do anything, which covers close to 1/3rd of all their debt. So as they ignored current debts (and irresponsible spending), they go back to WW2. It makes perfect sense, the Greek PM and that finance ‘Rock Star’ have no other options (if they want to remain in power), but this is not about the Greek debt!

This is about refugees and the truth is that many nations (most of them), they are all failing refugees, mainly because of Tax-Man. You see, this super villain relies on the help of its sidekick Mrs. Poli Titian and this sidekick has been overspending, giving tax breaks to large corporations in a whimsy notion that under those condition more money would come in. It was a flawed approach, because they all rely on people SPENDING money. Guess what? They overspend on luxuries and are now paying it off, many have no jobs and many more have been in an income world that resembles the world of Frozen, whilst the cost of living is still rising. All this adds up to empty coffers.

So Mr Juan Mendez, where will these costs come from? This is not my lashing out, this is me actually asking. I remain in favour to help refugees as much as possible, but how? We need to make massive changes to the way of life we now have. Mrs Poli Titian needs to actually instigate massive changes. Not just in Australia, US, Canada et al. ALL nations need to accept certain changes. We need to readdress the way we think and I will admit right here, right now that I am at a loss how to go best about it.

In my view, there is an option, but it is not one you like, not one you will even find acceptable or humane.

  1. Retirement homes are as per now only for those without family. If they have family, they must go there. This needs to be a global change

Yes, you are all upset now. Yet consider, if we unite families we shrink the costs of arranging all this, yet in answer, those funds will ALL go to legal aid, health care aid and refugee aid.

  1. Refugees can come in, but only assigned to volunteer positions for places like Salvation Army, St. Vincent, Red Cross and other volunteer places. For this they receive room and board. It will give aid to other places, work force and support. For that they will receive a place in our community and after 5 years they will get automatic citizenship.

Non-compliance means expulsion from that nation!

This is not even that harsh, the situation could become a lot worse soon enough, then what will we do? As we get all these academic people (and governmental expert consultants) telling us how things will get better soon, hoping that they can avoid actually answering the question in earnest.

The Greek example of their detention centres might have been the most outspoken, but I feel certain that they are not the worst, not by a long shot. Real refugees want to work towards a better future, my solution seems to be less, but it still gives them a guaranteed future for them and their children.

The parliament of Australia site gave me two paragraphs that matter (at http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp0001/01RP05).

“Asylum seekers are drawn to particular countries by a range of obvious factors-proximity, family and ethnic community networks, employment opportunities and wage levels, generosity of welfare systems, levels of tolerance within existing societies, and the accessibility of determination systems. In Europe last year 70 per cent of asylum seekers sought protection in just four countries-Germany, Britain, Switzerland and the Netherlands. Acceptance rates are more revealing of a country’s political priorities, or its attitude to migration, or the weight of numbers it has had to deal with, or its diplomatic relations with ‘sending’ countries, than the genuineness of refugee claims” and “Australia is perhaps unique amongst Western countries in its capacity and willingness to remove failed asylum seekers; in other countries most failed asylum seekers simply remain. Australia has however joined other countries in attempting to discourage new applicants. The most minimal welfare payment, special benefit, is provided to illegally arrived asylum seekers even after they have been determined to be Convention refugees; they are provided with temporary visas with no family reunion entitlements; and they are denied access to settlement services tailored for and provided free to off-shore refugees”

In my view refugees would (read: should) willingly go to any place that will accept them, this information gives a slightly different view. It is also interesting that the information is incorrect. The Dutch numbers are going down, whilst the Swedish numbers were going up. Moreover, the Swedish numbers are over 25% higher, yet the premise of the writ is not strongly affected. In this light we will see that the economies of the large 6, Germany, France, United Kingdom, Sweden, the Netherlands and Switzerland will soon change stronger and stronger if large changes are not made. Reasoning is that ‘in earnest’ (not in condemnation of any kind), refugees are an economic burden. They often cannot speak the language, the culture is different and there will be other moments that will stop them from becoming an asset to any future (most important their own future).

The solution that I am proposing might seem ‘inhumane’, but they are cast in places where people are less likely to take advantage of them. They will be in places helping their new nation and as such themselves as well and they will get exposed to a strong impulse of skills, language and cultural foundations that will only propel them stronger in future. In that light their children will already be eligible for schools and will help them build even stronger foundations.

Is my plan the best? No, it is not, but by giving it to large industries, who gave a massive part of that to their own members of the board is certainly never going to be a solution. This is not some anti-industry chant. The issue is that life in any environment requires equilibrium. A ‘coalition’ and politicians with their ‘after-elected’ need, as I personally see it, have been uniting for the need of a few and that need has been answered for these few to such an extent that the many are now no longer regarded as essential. We have now entered into the realm of trimming. Not the trimming of the fat, but the trimming of non-consumers and in the short minded view of the industry, those, of whom they think no one needs. But in that same view we will also trim our humanity, reduced to be workers, for the lessened good of consuming.

My view is not a good one, but as I see it, it beats where we are moving towards. In the end, is my view just an exaggerated negative view? I personally wish it was so, but consider the following facts:

External debt and population

  1. Germany – 5.5 trillion – 81m
  2. France – 5.7 trillion – 64m
  3. United Kingdom – 9.5 trillion – 65m
  4. Sweden – 1.1 trillion – 10m
  5. Netherlands – 2.5 trillion – 17m
  6. Switzerland – 1.6 trillion – 8m

Now take the next part in close (but sceptical consideration), one report claims that for the UK servicing the debt costs a mere £43bn, which amounts to the entire defence spending of the UK. The UK collected a forecasted 650 billion in taxation last year, taking 6% of the budget away just to keep Even Steven, so if the UK wants to move forward they need to budget on 90% whilst collecting the 100% forecasted part. It is quite the miracle to make that happen. Now the UK and Germany are doing reasonably well (compared too many other nations), but they too have issues. When we look at Sweden and the Netherlands; that image swifts a lot faster in a downward spiral. Perhaps some will remember the issues Switzerland and their currency had a little over a month ago in my article ‘A seesaw for three‘ on January 18th 2015 (at https://lawlordtobe.com/2015/01/18/a-seesaw-for-three/)

We now see the picture adding up to a lot more hardship, and add to that the refugees:

  1. Germany 571K – 144
  2. France 210K – 310
  3. United Kingdom – 194K – 319
  4. Sweden – 86K – 106
  5. Netherlands – 75K – 222
  6. Switzerland – 50K – 154

Now the view is almost complete. So for Germany we see 571,000 refugees, which means one refugee per 144 non refugees. The 144 pay for the way of one refugee. We could think that this is easy, but now consider that taxation is down, so the required money is not getting in (for various reasons). Now we see the problem, how can any government continue to support a sliding scale? This is not about fairness, because it is not fair on the refugee. I will be on the first line stating this, but when the bills are due, fairness will no longer be a factor. If we want to resolve the refugee solution, so that we all can continue giving them a future, something must give way. We can hope for a much better economy, but that is a ludicrous fantasy, even if the economy suddenly upgrades by 15%, these nations will still be hurt by the overspending and the consequential bills that became the headache for well over a decade.

So in my view we either change the way the refugee issues are addressed, or soon thereafter Australia will not be the only one sending back refugees, with the consequential nightmare that such actions will bring.

So as I contemplate the words of Juan Mendez, I wonder if Mr Mendez has considered the dangers of true torture when funds run truly dry on a near global basis. We all need to look at how it can be made better as we all should consider such steps, but in addition, no one seems to be looking at the cost of it all, yet the pressures of the rising costs of helping refugees getting a future are not being addressed in this economy, why not?

 

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January 9, 2015 · 15:25

The Cat and the Bacon

I have written about the economy on several occasions, I always proclaimed that it was pure insight as I saw it and that I do not have a degree in economy, I am an analyst. Yet today these borders of non-knowledge might get stretched a little further than previously shown. Today is all about the Euro!

I personally never believed it to be a good idea. We saw how all these politicians were proclaiming on how ‘good’ it was for the economy. Was it? You see, it might not matter for the bakery on the corner, the grocer next door or the butcher across the street. It matters to the giants of industry and how it benefits there bottom line, the extra coin for the members of the board, not for the people in the stores, that image tended to be a virtual one, it virtually did not matter at all!

I saw how the change of coin, from the Dutch guilder, things suddenly seemed to be 50% cheaper (2 guilders equalled one euro), but the math is easily made there. What those people experienced that buying a chicken on the market was 6 guilders, it became 3 euro’s, but then what? In a little less than 4 years that chicken from the same dealer ended up being 6 Euro’s. An annual 25% hike in prices. The chicken example is a little extreme and many articles did not raise that quickly. Some will mention the issues of milk in the Netherlands, but that is an issue much more complex and the Euro itself is only a small fragment there.

So, could I be wrong?

That is centre in this debate. I could be wrong, but it is very likely that we are all looking into the wrong direction. It would be nice to blame places like Greece, and they are definitely having an effect, yet the issue is not the EEC, it is more and more pointing towards America. You see, we are all in a bad shape, no one is denying that, yet in American, things have not gotten any better for a long time. Let’s face it, some people are now shooting at the police for fun, or for reasons of aggravation and despair. The people in America are suffering in many ways, but the all holier than DOW keeps on rising in addition, their currency is massively on the up, which under the issues showing, seems a little too good to be true, it an assumption, but is it fair and correct?

That remains to be seen, when we look at the Guardian, we see (at http://www.theguardian.com/business/2015/jan/08/euro-dollar-1999-levels-deflation-oil), the following: “Recent data for the Eurozone has proved weak, with inflation falling and unemployment rising. Italy remains in recession while France has seen consumer and business confidence wane. Only Spain and Germany among the major economies have appeared to gain in strength, though Berlin has failed to kick-start GDP growth and Spain still suffers from an unemployment rate of 25%“, these are facts, they are not in denial, but where are the results of the UK (which were not great)? You see, these facts are true, but there is more to consider (besides Greece dragging the EU down). What about Sweden and the Netherlands? Not the greatest economies compared to the big 4, but still sizeable ones, we can admit that they are all struggling, yet the fact that we see a ‘propagated’ booming economy in America needs to be addressed too.

Who statistically has a job?

When we consider an article in Forbes last August, where we see “My friend and the waitress are victims of a massive but hidden problem called underemployment. Watching falling unemployment numbers being reported at 6.2%, down from nearly 10% four years earlier, is simply misleading“, attached to a headline ‘Tackling The Real Unemployment Rate: 12.6%‘ (at http://www.forbes.com/sites/louisefron/2014/08/20/tackling-the-real-unemployment-rate-12-6/), we get to see the picture that the people are living, Wall Street is ignoring and  the current administration of the US is misrepresenting. So is the Euro doing this bad, or is it dragged down by a misrepresenting nation carrying a 17 trillion dollar debt? By the way, did we not see something similar with Tesco and a few hundred millions misrepresented? How did THAT turn out?

When we see this quote in Forbes we see the real danger “741,000 discouraged workers – workers not currently looking for work because they believe no jobs are available for them – are included within the list of marginally attached people. Another 7.5 million were not considered unemployed because they were employed part-time for economic reasons. Those people are also called involuntary part-time workers – working part-time because their hours were cut back or because they were unable to secure a full-time job“. The danger is twofold, how many of the 741,000 are over 50? It seems that companies, especially those with younger, inexperienced executives are afraid to hire people with skills and know how. In regards to the 7.5 million part time workers, does that include those Wal-Mart people, who need to rely on food stamps and all kinds of other support systems? I am not debating their need, more that the owners each walked away with well over a billion in 2013, whilst its staff was on governmental food stamps. How does that ‘boom’ your economy? It almost reads like ‘gangbang’ for your buck whilst the governmental administration bends over, a lack of fairness on more than one front, one could state!

Booking a balance!

You see, the unbalance goes a lot further, the US as a nation can float its currency, this is not a bad thing, normally every nations does it to some extent, to weather a really bad time, so that business and consumer is not hit with weird spikes, it is an issue that has happened for a long time and it will continue to happen, yet the Euro does not have this privilege, these economies are set to what is done in Bruxelles (Brussels), and as such, it is likely impacted by spikes to some extent. However, as their currency is spiking downwards against the Dollar, which seems to be decently overvalued, we get a new danger that the drag will continue, whilst no one seems to be looking and the bubbled version of the US Dollar. So is my non-economic view correct, right or wrong? Yes, there are three options, because, what is correct may still not be right.

Consider, that the Euro nations are not doing so well, which is true after all, that fact does not make the dollar better does it? It is correct that the dollar looks better because the Yen and the Euro looks less good, but the economy in America is not booming, if it were, we would see a lot more people gainfully employed without the need for government support, you see, here we get to the matter on what is correct and what is right. If the US is having a virtual boom, we are judging the US on merits of misrepresentation, which by the way might not be illegal, but should an economy not be held to its cost as well? The US debt is still increasing; the people (a large amount) are not paid to a level of being self-sufficient. We see an economy that had made the thirteen amendment in 1865, there we see “Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction“, in 1867 the US got the Peonage Act of 1867, where Congress abolished “the holding of any person to service or labor under the system known as peonage”, as well as specifically banning “the voluntary or involuntary service or labor of any persons as peons, in liquidation of any debt or obligation, or otherwise”, now this all sounds pretty clear, and having a job is not this, but when a population is forced to work for scraps, whilst still requiring food stamps, it seems that we now have an issue. no one is a slave, but under the conditions where the very rich grow their fortune at well over 30%, whilst those on average grow less than 2%, we should clearly see that the balance of fair play is no longer anywhere in sight. I am not against making profit, it is a capitalistic form that has merit, yet when we see six members of a family, each making a 9 figure number, whilst the 1% of America it employs makes less than the line of poverty, we need to ask serious questions. In addition, as we see a group where they deal in articles that are from questionable sources (at http://www.theguardian.com/global-development/2014/jun/10/supermarket-prawns-thailand-produced-slave-labour), where the quote “A six-month investigation has established that large numbers of men bought and sold like animals and held against their will on fishing boats off Thailand are integral to the production of prawns (commonly called shrimp in the US) sold in leading supermarkets around the world, including the top four global retailers: Walmart, Carrefour, Costco and Tesco“, we are confronted with a governmental issue, where it allows for profit at expense of its own industries in Louisiana, Alabama and Mississippi. We can acknowledge that the oil spills have been detrimental to the health of the industry, but when the big players get their goods overseas, how can any economy recover, especially as these overseas players (as implied by the Guardian), can rely on profits through slave labour. This goes further than just the shrimps, other food items or clothing. It shows a disconnection from the people, you see economies are more than just behemoths, we could see them as parasitic in nature, which sounds wrong, but is actually very correct. The retailer lives off the people, but can only do so if the people can spent. It is a symbiotic relationship; it requires the host to remain alive. Large businesses have forgotten about that, they focus on where the profit is, not on the required equilibrium, so as places like India grew form a third world market into a super economy.

Cycles of equilibrium

The people outsourcing, seem to forget that its own population is every bit as important, so as that group falter, so will businesses slowly but surely. As we see that cycle progress, is it not strange that the US Economy remains booming? A nation with many people unemployed; even more people in a state of poverty; 15% in poverty, this gets us a little more than one in seven in poverty, meaning that big business is now relying on revenue based on the remaining 5 out of 7. It looks nice in a statistical model, but as the overall quality of life goes down, that group of 5 will dwindle down too, when that happens, the economy will falter in new unprecedented ways, leaving the only option that a few people walk away with all the money they can carry to their own island and the rest is left without anything. This can be read as misrepresentation as well, but is it far-fetched? that part is not a given until we see an actual economy that truly improves, which means that the poverty line descents, people will start having a liveable income, that will give rise to shops needed and more jobs created and all that opts for the US national debt to go down by a lot, something that this administration has not achieved, more important, it might take 2-3 administrations for that debt to be addressed in any way, shape or form, which only fuels the wealth of banks and financial players. If it is addressed too quickly, the poverty line could soar far further then 21%, giving an instant crises in the US that goes beyond the imaginations of many and will be one nightmare Wall street did not foresee to this extent. Yet how would that affect the Euro? Well in two ways, as the US people will become more and more desperate for jobs, suddenly the economy looks even better on our grass, but it is an ‘economy’ for the wealthy living, the rest will see a further drop in living conditions (an assumption on my side)

So as big business ties the cat to the bacon (meaning: opportunity knocks), we must wonder how these elements call for a booming economy as an economy is reliant on people spending money, buying items and none remain to do just that.

You see, there seems to be a fluctuation on what an economy is (seriously!).

The first one we see is: “the state of a country or region in terms of the production and consumption of goods and services and the supply of money“, which is what we all believe it to be, yet the second meaning “careful management of available resources“, which we can take as “offering good value for money” and “a financial saving” last there is “the cheapest class of air or rail travel“. Weird or not, they all apply. I got them straight from the Google dictionary.

Now when we mash them we get: “the National state in terms of the production, the cheapest way possible, whilst advocating good value for money, whilst ensuring the highest efficiency in regards to managing our available resources, whilst optimising consumption of goods and services, ensuring the best supply of money through contribution“. Does that not sound very familiar? You see, it seems like a booming economy, if you are getting the money. The consumer is left with the option, whilst not guaranteeing a pool where such sufficient income can be maintained, almost a death pool of discontinued certainty.

So, how did we move away from the Euro? Well, I actually did not, you see, these elements have been a factor with American companies all over Europe, now consider how much taxation they did not have to make due to tax havens and specific invoicing? You see, a government is depending on its coffers to be filled so that there is a growth and continuation of an economy, whilst these corporations are now stating that this inherent side of the symbiotic relationship was not theirs to care for. Now we see and a loss of balance as well as a first glance on how dislodging an economy can have long lasting effects. As the Euro has less ‘floatation’ options and as some unbalanced it even further, we now see no options on the Euro side, whilst the Dollar has legal options to float its currency, unbalancing the amount further, the upped representation does the rest!

Blame Game

Now, it is important to see that I am NOT blaming the dollar for the Euro, yet it must be said that those behind the Dollar (businesses) have presented themselves overly good, so there is a secondary effect, whilst we see more and more often a changing scale of what is to be reported on. Let us be clear, several EEC nations have done this in the past, but the balance is now changing further and further, giving no one a clear view of what is real, we see presentations that are all a little out of whack, so as Europe starts its plan of credit easing, we will see the numbers jump, yet in what direction cannot be predicted (not by me at least), because, if investors walk away ‘en mass’, no credit easing will do any trick, if you doubt that then look at India, is it not weird that NTT DoCoMo / TaTa, the big winner of 2013/2014 suddenly wanted to dump its one billion share? Is it not strange that in this ‘booming’ economy, all are looking on the inside? Is a booming economy not about growth? So as we ‘see’ a growing economy, is that not (usually) a sign of growth? So why are the mobile providers T-Mobile, AT&T, Sprint and Verizon all steering clear of the Indian market that is seemingly up for grabs?

So is the US economy booming, or is it going boom-boom?

 

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November 2, 2014 · 00:20

When we lose the plot

That is actually the first thought I had when I read the thoughts of Ed Miliband in today’s Guardian. The view ‘House of Lords not representative of much of the country’ (at http://www.theguardian.com/politics/2014/oct/31/miliband-devolution-elected-second-chamber-regions), of course, as the statement is made on Halloween, or All Hallows’ Eve if we go by the old title is a moment when we see the brain dead zombies walk the street and Ed Miliband’s statement fits right alongside with it! OK, I apologise Ed that was not very nice of me. You are entitled to your view, I should not attack it, but I can disagree with it.

So why all the zombie references?

Well, you see, as we see nations being less and less about proper long term planning, we see short term stopgaps that lead nowhere and they all cost a bundle. If you are in the UK and you stare towards the setting sun, you might, if you live westwards enough you get to see the Atlantic river, on the other side is a former colony that is ALL about short term resolutions that go nowhere. They are allowed to do that of course, yet, overall it costs much for all, many will never be helped and few are around filling their pockets with cash whilst not solving anything. Let’s call that colony ‘little Britain’ (not Ireland mind you, which is another place all together). Now, if you go on towards the west as far as you can, past those hills called ‘the Rockies’ you see another river called the Pacific river, and yours truly (that would be me), is living on the other side of it on an island called Australia!

Now, we have the same issue the Americans of Little Britain have. More and more of this is getting to be about short term solutions that are not really solutions. We need a long term solution in government, like the UK has; it is called the House of Lords!

Many tried to do away with it and some just called it ‘change’, but so far the verdict is: “However, no consensus on the future of the upper chamber emerged“.

You see, the House of Lords seems to be up, up and removed, but the future of the UK is decently stable and safe because they look out for all Brits, those who pay tax and those who don’t. You see, as I see it, the basement of Parliament (also known as the House of Commons), want change, they want it quicker and quicker. But as they are planning their political agendas, as they are too eager in securing an extremely comfortable future by enabling commerce too easy, too much and too often, the House of Lords stops them when needed so that the other people, those who are in the eyes of commerce and retail revenue ‘not that valuable’, yet they too are British and deserve protection, the Lords looks after all of them.

I understand the frustration from Miliband at times too well, but many forget the expression “Nature does not hurry, yet everything is accomplished“, life is improved in small steps, the Lords will look after all Britons.

This is at the foundation and Australia misses out, just as America does. However, for Australia there is hope and a solution, which I will address down later on.

I particularly liked the following quote: “In a speech on Saturday Miliband will highlight figures showing that the House of Lords is failing to represent large parts of Britain. “When people say that they are turned off from politics and that it doesn’t represent them, we have to do something about it”“.

Eddie, my dear fellow, please explain to me the words you had during the Scottish referendum and now, I read “The Tories want to go further on the handover of tax levying powers than Labour do“, so why are you not on board? The reasons might be very valid, but what are they? So here we see that in past referendum times, devolution seems to be not all that de-evolved, it must make them tartan fellows mighty happy that you are on the case, is it not?

You see, as I see it, Scotland remains a factor for Labour and so it should, but as certain issues move over to Scotland Miliband is set having to fight on two fronts and as such, he does not have the reserves, the energy and the battle plan, so now we see this (this is all purely conjecture on my side).

You see, all these parties are for the better part short term, one perhaps two rounds after that usually the other takes over. The House of Lords is all about long term. Anyone stating that long term is not for now is basically deceiving you, because short term is about the now, the commissions, the bonuses and so on. Like some half-baked sales person in software solutions selling now what they can as they need the revenue, the forecast and the bonus. It is never long term and whatever long term they claim to make is nothing more than the final push for the end of quarter sale, end of year sale and then the new quarter goals. It is a limiting vision that is in the end doomed to falter. It is particularly interesting how these people all need +15-20%, without ever expecting saturation, almost like the well that never dries. Go to a well increase the drain of water by +20% each year and see how long until there is no more water. Then what will you do? The house of Lords is there to see that when faced with these short sighted people, that someone will arrange for options of additional depth or extra irrigation towards the well.

And let me be frank, this is not just about Labour or Liberal Democrats, the Conservatives will have a similar short-sightedness in this regards, which is why we need a solution like the House of Lords. I rechecked the roll today, and yes, my name is not there between Lord Vallance of Tummel and Lord Verjee. My first thought was, ‘good grief’, once I am elected as an official Law lord, I will be placed between two Liberal Democrats. Well, there goes the neighbourhood! 🙂

Yes, we must keep a sense of humour about it all. Anyway, short sightedness, in the UK there is a solution, but here in Australia there is not. I do believe we need a long term option here, You see, Australians have a Senate, yet, unlike Canada who designed it to be like the House of Lords, someone here on this island thought it was a good idea to take the American model. I respectfully disagree, however the Australian model seems stronger than the American one (seems, is used as I never did an in depth study of both next to one another).

Yet, we were talking about long term plans. I believe that true long term plans might come from a Mayoral party, a group of Lord Mayors that decide on long term plans. A Mayor often needs to think long term and as such, a different course of actions might work for Australia. Now, I am not on the side of our Lord Mayor Clover-Moore, I think she overspends by a lot, there are other issues I disagree with and as such I did not vote for her, but I admit that her Sustainable Sydney 2030, is a balsy plan. Getting the roads more and more to be ready for bicycles is one way to get Sydney moving, now they are getting light-rail over George street and when the busses are a mere past tense on George street we will see true change. It is visionary, no doubt about it. It is long term and could change the life of people in Sydney for the better, I should know because as I grew up in Europe, the use of a bicycle is one I am very familiar with.

So is my idea out in never never land? Not sure, I am willing to admit that it is and perhaps the Senate does think long term, but I do not remember seeing too much of that happening, which made me think of a solution that is not at the top of a pinnacle, but at the very base of it and are our lord Mayors not at the foundation of any city and our lives?

So my advice to Ed Miliband: let it be dude! (Yes, I called him dude)

Let us all find solution together and let the future be long term, short term thinking might get us to the next crossing again and again, whilst we learn after 10 crossings that we could have saved a massive amount by turning left, right, right and left and avoid a dozen of them crossings. And in many occasions it is not about getting to the road at the end faster, but to get there without too many obstructions, the rest we will figure out in the course of the day.

Yet, I am not done yet with Mr Miliband. There are two more quotes to look at.

“And it cannot be right that those peers who do live outside London are less likely to be from great cities like Birmingham, Liverpool and Bristol than they are to be living in less-populated rural areas” and “We will make the second chamber of parliament truly a senate of the regions and nations of our whole country“. Really? How is that in any way a guarantee for a better quality of politics? When we see that not the best in this field, but the best one from Shropshire is chosen, then we will truly see how bad some choices are. As such, I cannot identify for one iota with the idea of Ed Miliband. Yet, in the end, perhaps I am the one who lost the plot. I will let the reader decide and I hope that they will vote for whatever solution is the best, not the cheapest or the most comfortable.

 

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September 19, 2014 · 11:34

To be deserted

I have seen the term more than once. I’ve heard people cry, whinge, rage and other emotional forms as they felt they had been deserted. This is fair enough, we all feel like this at times, sometimes with good reason, sometimes with reasons less so. In this case I am referring to the Guardian article (at http://www.theguardian.com/world/2014/sep/18/islamic-state-video-isis-uk-hostage-propaganda-message-gunpoint). Initially it is about the quote “Well it’s true I am a prisoner. That I cannot deny. But seeing as I’ve been abandoned by my government and my fate now lies in the hands of Islamic State I have nothing to lose. Maybe I will live and maybe I will die, but I want to take this opportunity to convey some facts that you can verify. Facts that if you contemplate might help preserving lives”

Let’s not beat around the bush. This man is a journalist, a photo journalist to be more precise. John Cantlie seems to be by all measures a decent man, even courageous. He went into a warzone to get the images the people seem to want to see, perhaps to please his station. It does not matter what label I give here, because it is about HIS reasons, and why HE did this. In the end, he entered a war zone and as such he became a casualty of war, yet this is not the war we used to know and the war we seemed to know. The entire Syrian debacle went from a ‘simple’ civil war and became a mess involving several parties and no clear solution. A mess that has chemical warfare, it included mass bombings on civilians and other elements. The conservative death count stands at 160,000, but I think that this number is off by a decent margin.

Getting back to John Cantlie, where several other questions seem to rise. Why was it ever a good idea to go into Syria? Don’t get me wrong, I admire the brazen way of this, the courage to go into the darkness to capture the unique moment, yet this is a warzone, with Al Qaeda all over the place. The short of it is that we do not and should never deal with terrorists. Yet, let it be clear that I do not speak out against John Cantlie. He drove his passions where it took him and in this case not to a nice place. I also agree with the following quote in the Guardian “When Haines was first shown in an Isis video in September, the Foreign Office urged the media to show restraint, and not to report that two other British citizens – Cantlie and Henning – were also being held ‘because we assess that coverage will increase the threat to their lives‘”, I agree, we should do whatever we can to lower the threat to these people and if there is an option to extract them using Seals or SAS, we definitely should, because the world needs people like John Cantlie who are willing to step into the darkness, whether it is for good or for less good reasons. In the end I believe that people willing to walk into a battle line will always be a greater asset to the world then those hiding behind the memo or the procedural issues.

Syria is a particularly nasty mess, not just because it is in its foundations a civil war. When parties decide to execute priests, a 75 year old Jesuit named Frans van der Lugt, who had been in Syria, giving aid to the sick, the hungry and the mentally ill for decades, a person doesn’t get to become more harmless to extremists then he was. So when we see these executions by Jabhat al-Nusra (AQIS), we wonder how to stop this. I think we are 3 years too late, now we are adding oil to the fire, which could escalate issues even further. You see, I think that America is making a new mistake, but they are not acting wrong! Let me explain! Headlines all over the world, with this one in the LA Times which is crucial ‘House approves Obama’s plan to help Syrian rebels fight Islamic State‘ (at http://www.latimes.com/world/middleeast/la-fg-congress-isis-20140918-story.html). It is my personal believe that America should not have done this.

My reasoning is twofold. First of all, there is every chance that Russia will sooner, not later take an opposite stance, which means we get additional escalations, second to all of this, there is a massive issue to what constitutes a ‘Syrian Rebel‘. This mix is no longer just Syrians, it includes Hamas, who might then use these weapons against Israel as well as Syrian rebels who are Al-Qaeda sympathisers, which means that they will end up being armed and pick up weapons for the Islamic state, so we do not have a win-win here either. It is my personal firm believe that these escalations should have been done by the other NATO members, without America and without the Netherlands.

I should explain this reasoning.

  1. America is in a bad state, to get America back as a superpower, it needs to cull internal greed, get its budget right and work off the 18,000 billion debts. Without America, there is no free west and as such everyone loses out.
  2. The Dutch should be left out if possible, not because of any lack; they can rip through steel with their teeth with the best of them, even on a Monday morning. The issue is with the Dutch photographer who was with John Cantlie initially. His name is Jeroen Oerlemans and he was released. The issue is not the Islamic State; the issue is that the foundation of Syria is still the base of a civil war. If we are to have ANY chance of diplomatic talks with Bashar al-Assad, then keeping one player out of this seems essential to me. We could always ask the Swedes or Swiss to intervene in these talks, but the release of the Dutch might have a relaxed stance in those talks.

This is all conjecture from my side, so feel free to completely disagree, yet consider that the only way to deal with ISIS is that at some point, parties will need to deal with Bashar al-Assad in some way and we need to keep any tactical avenue open. This is at the foundations of my thoughts here.

There is another side to all of this. There is another group we seem to forget about. There are a little over 3 million Syrian refugees, they are placed all over Lebanon, Jordan, Turkey, Iraq, Egypt, Algeria, Sweden, Bahrain, Germany, Libya and a few other nations. During all this time, these places had casualties too and they are not part of the 160,000 casualties, which is why I think the Syrian death toll is a lot higher. In all honesty, did you remember these refugees? I feel 100% certain ISIS has not forgotten them and if they are recruiting there we are in for one hell of a wake-up call soon enough. If there is any strength in number then these new ISIS members will be most likely in Lebanon, Jordan and Turkey, where they can up the ante of this entire theatre in the most expensive way imaginable, others might not be outspoken ISIS members, yet they are potential lone wolf terrorists. If some arrived in Sweden, France and Germany we already have a potential security problem on our hands.

Consider the following fact (at http://www.reuters.com/article/2014/04/24/us-libya-usa-security-idUSBREA3N0MW20140424), is Libya just dealing with Libyan extremism, or have some of the Syrian refugees taken up arms with ISIS? Now consider last week’s news ‘Egypt seeks broader alliance with U.S. over Libya‘ (at http://www.cbc.ca/news/world/egypt-seeks-broader-alliance-with-u-s-over-libya-1.2765468), again, is this just about Libya? Egypt has received well over 130,000 Syrian refugees and it is still dealing with the aftermath of the Muslim Brotherhood, who now has additional reasons to go extreme and with ISIS/ISIL willing to step into the limelight it can be safe to say we are not even close to the escalations we face.

Yet, here we see another version of ‘to be deserted‘, The Syrian people genuinely feel this way and some moved to ISIS, because when the Syrian mess started, they were not a factor. We face escalations in Jordan and we are seeing them in Libya and Egypt. The IB Times has additional info on this (at http://www.ibtimes.com/isis-training-egyptian-islamists-attack-security-forces-1680530), if this is truly true, then ISIS would have surrounded Israel to a massive degree, which could spark escalations sooner rather than later. The IB Times offers the following quote “A senior commander of the Ansar Bayt al-Maqdis, which has been active in the Sinai Peninsula of Egypt since 2011, told Reuters that Islamic State militants have been providing the group instructions and training on how to operate more effectively“. This means that the MFO could be in more direct danger. Less likely South camp, but the North camp near Al-Arish would give an open path to Rafah, which spells all kinds of escalations.

How true is all this?

I cannot tell as a fair deal is speculation based on second hand information, so it should be read with bias, yet if there is any value to it, it spells all kinds of trouble and keeping America out of it until we no longer can, seems essential. It is time for the other players (UK, Australia, Canada, Germany, France and Italy) to take the war to ISIS/ISIL now. Let’s not forget that America could still be a big help in setting up medical theatres for a still escalating Ebola havoc. The economist gives us a good view on the dangers on how it spreads and how America could be a true massive saviour (at http://www.economist.com/blogs/economist-explains/2014/08/economist-explains-10), not doing so, would the nations of Africa now feel that they were deserted?

In this blog we saw groups, all having reason to feel deserted and some definitely are not, yet some of those who were deserted for too long are now the most likely to switch sides to the dark side of insanity, is ISIS/ISIL anything less than that?

In the end there is one more view I need to offer. It comes from the Epic Times, more specifically the Jerry Doyle Show. I followed him on Facebook as a Babylon 5 fan, and only recently did I get to learn about his radio shows. He makes good points and he has a distinct view. I wonder how a televised debate between him and Bill O’Reilly would go, but this is not about any debate. In this case it is about a view Jerry aired (at http://www.epictimes.com/2014/09/congress-is-more-concerned-with-their-political-skins-than-the-lives-of-our-soldiers/), it was aired yesterday. In the article he states “Senator Harry Reid and Mitch McConnell are on the same page. The Senate is going to pick up the House government funding that authorizes arming the Syrian rebels and then head home for the election”, I think there is more to it than this. It is my personal believe that the agenda of Harry Reid and Mitch McConnell goes beyond that. Consider the other blogs, I have stated in several places how America’s freedom has been wasted away, giving power to large corporations and banks, to do as they will. Instead of acts that lower the actual debt, we have seen again and again how the debt kept on going up, this new ‘war’ and this pushes the American debt clearly over the edge of bankruptcy. My view is not wholly without merit. Consider the source Roll Call (at http://blogs.rollcall.com/218/continuing-resolution-isis-vote-breakdown), it gives a few views that many might not have considered. Is this truly about bi-partisanship, about polarisation or is it orchestration? I leave it to the people to make up their own mind, yet Matt Fullers view when he states “Neither vote was typical. Roughly equal numbers of Republicans and Democrats voted against both proposals. But there were some interesting trends hidden in both votes” make me wonder, was it just about trends?

So if this was about personal political gain, which other people got deserted in this process?

 

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August 30, 2014 · 11:03

The Sanctimonious pretender

I saw a smaller headline this morning. It was not a text, but a video from the Guardian. The headline read ‘Why is the United Arab Emirates secretly bombing Libya?’ (at http://www.theguardian.com/world/video/2014/aug/29/why-is-the-united-arab-emirates-secretly-bombing-libya-video). The text below the video is “The United Arab Emirates, a small wealthy Gulf state, has been secretly bombing targets in Libya, from bases in Egypt without the knowledge of the US. We explain how the raids reflect new rivalries in the region and are likely to trigger new strains between the west and its increasingly assertive Arab allies“.

There are several sides to this, but let’s start with the obvious ones “without the knowledge of the US“. Since when do we need to tell the US everything? If allies share all information, then can Washington please be so kind to send a 100% backup of their collected NSA data? You see, when we look at the word ally, the Oxford dictionary gives us “A state formally cooperating with another for a military or other purpose“, but the one that is perhaps more apt is “A person or organization that cooperates with or helps another in a particular activity“. So helps or cooperates in a particular activity, not all activities.

There are two questions linked to all this. The first is “how much of an ally is America?” I do not mean this in a negative light. The reality is that as it stands, USA is no longer a super power. They are limited in their actions and as the Democratic administration has given away nearly all power to banks and debt holders, in addition, there is an increasing visibility on just how dependent USA is on their need for oil. The article shapes another side that might have been unintended. It states “they were once united in their fear of Iran“, the fact that USA has been trying to get a dialogue with Iran is unsettling to many. In addition their slow response to the threat ISIS is also seen in a more negative light. The Iranian change has left the impression that USA will talk with all, this left an uneasy taste in the mouths of the conservative gulf monarchies. For if America is willing to take the ‘easy’ path to their oil, as well as the implied move of America to move away more and more out of the middle east is showing them the question, who should be THEIR ally? This could be the economic prosperous situation that the Commonwealth needs, yet would it be prosperous and moreover, how much of an ally will the Commonwealth nations need to become?

This is part of the view that I have had in other areas as well. Big Business seems to regard any nation with a monarchy as a non-positive area. Big Business is all about their powerbase which allows for a more secure hold on any location where politicians are the powerbase for their profit needs, it allows for changes and settings that are beneficial to large corporations. It seems to me that they cannot get the power foundation they so desire. Although phrased in opposition, KPMG made notion (at http://www.dutchnews.nl/news/archives/2012/10/big_firms_consider_leaving_the.php) of this. They stated in the headline ‘Big firms consider leaving the Netherlands, says KPMG report‘, the quote “Some of the Netherlands’ biggest companies are considering leaving the country because of the worsening climate for entrepreneurs, according to a new report by consultants group KPMG“. It is my view that this is not the actual ‘truth’. As I see it, it should read “Some of the Netherlands’ biggest companies are considering leaving the country because of the required freedom of exploitation that is denied to them“. This is of course my personal view, but considering the tax responsibilities firms have and for now, the pressures on both companies and people for tax accountability in the Netherlands. A board of directors have no national allegiance, just an allegiance for profit. I feel that honest values of accountability have for the most been the best preserved in monarchical states. Which includes the UK, the Netherlands, Sweden, and of course the UAE, Saudi Arabia, Oman and Qatar. So is there another factor why there is growing uneasy between these states? It seems to me that both Saudi Arabia and Qatar have absolutely nothing to gain in the long term to support ISIS, so where are these accusations as well as the implied evidence coming from that they seem to support these Islamic fighters?

The fact that Turkey and Qatar are stated to support Islamic movements is a call for more scrutinies investigations, as that implies that Turkey is now in opposition to its allies US and UK, so what quality evidence is there?

This is in the back of my mind when we look at the evidence. Is it truly the nations, or the larger players in these nations? If large corporations are indeed fuelling political needs of change by giving access to Islamic change, then we have an entirely new game in play. If we consider parts of ‘The Mobilization of Political Islam in Turkey‘ by Banu Eligür, we see another supporting side. It is the endorsing view by Jack Goldstone from George Mason University that gives us “Eligur shows how Islamists took advantage of the military’s obsession with the left and thus the military’s willingness to ally with them against leftist parties, the growth of a Saudi-supported Islamic business elite, and rapid urbanization, to create expanded networks and opportunities for electoral gains“. This is the side that is only one part. We tend to consider the side of on how Saudi Arabia and Qatar are involved, but we forgot the ‘western part’ in all this. Who exactly are the Saudi-supported Islamic business elite? These people, are they members of the house of Saud or are they exactly the opposite, Islamic members preparing to overthrow the house of Saud and turn a monarchy into whatever comes next. If that ever happens, then we get an entirely new situation. You see, whomever is in charge next can decide on who is allowed into Mecca, I have absolutely no idea what the consequence will be to that city, however I guarantee you that it might be the one spark to set a massive new strain of wars into motion, a destabilisation ISIS has been aiming for, for some time now.

Even though Jordan states to be ready to counter the radical threat, we see a view of widening support for ISIS among Jordanian Islamist fundamentalists inspired by its recent advances in countries neighbouring Jordan, which is a view that many are for now ignoring (likely until it is too late). This would force a massive military change for Israel and Israeli support as it will then be in a worse situation then it was in 1973, almost exactly 41 years ago.

The question becomes, how are they connected? They are not directly connected as events, yet the destabilisation will give a massive boost to the needs of ISIS as the younger population acts and reacts out, not in favour of ISIS, but against Israel due to a multi generation lecture of hatred (read non-acceptance), of the state of Israel. This might become the act tipping the scales in both Saudi Arabia and Oman. For ISIS it would be a win-win premise, if these two nations act out against Israel to appease its population, ISIS would claim to be the Islamic leader against Israel, if these nations hold off, they would create additional discord within the populations of both Saudi Arabia and Oman, which would only push the ISIS agenda forward more strongly.

So who is the Sanctimonious pretender?

As far as I can tell, they are the members of the boards of directors, in several cases just the man at the top who is pushing through support for certain extreme agenda’s so that a long term profit game can be played. The question would become would ISIS keep their word, or will they divide and exterminate this ‘infidel’ based support later on, for if we regard the meaning of infidel as ‘those who doubt or reject the central tenets of one’s own religion‘, are these people not digging their own graves?

Here is an Islamic view on greed: “Watch out for greed because the people before you perished from it. Greed led them to be miserly so they became misers. Greed led them to break the ties (of kinship) so they broke it. Greed led them to sins so they committed sins. (Abu Dawud)“, a view that was created almost a century before Christians went on the Crusades. Even then, Islamic view opposed the utter destruction that greed embraces.

If we do not start acting (read more than planning) for any solution that stops extremism, we might be left without options and the only oil America gets is whatever they can buy from Venezuela, Canada or Russia, which might make for a very uncomfortable oil price and a future we should all enthusiastically avoid.

 

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August 27, 2014 · 11:10

Which coin?

This morning I was confronted with my own thoughts of the last few days. I am not stating anything new (at least I hope so). The American issues, the overly visible multi-billion dollar deals and a few other notions. It started earlier this week when I heard that a friend was made redundant. These things happen. It happened to me, it will happen to others too. The issue I had is that for a decent long time we have known that companies for the most are not too bothered with loyalty, for them it is about the bottom dollar, what is interesting is that they tend to DEMAND loyalty to a fault until they cut away the people who loyally served them, in some cases for decades, only to replace them with ignorant junior staff members often costing them less than 50% of whatever they are paying now. This is not new, this had been going on for some time and they do it nice and legal, at times segregating a staff member in a niche position, waiting a year, if that person had been around a long time even two year and then closing down that department, which saves them years of due income in settlements.

Weirdly enough, yesterday’s story about the bankruptcy of America is linked to all that. You see, this entire issue can be reduced to two coins. One coin is the government, on one side we see the view they have of companies and the other side is how companies really are. The second coin is how we see companies and the other side is how companies turn out to be. They are not the same coin, they are an entirely different currency all together!

That is the view the older generation does not seem to comprehend and what the younger generation takes for granted. However, the long term consequence is that companies will end up having the short stick in all this (but about that side more a little later).

Let us take a look at coin number one. The government coin!

Companies, for the most have considered themselves nationalistic, it gives them an identity and also the protection of the government branch should that ever be needed. There is Woolworths, the Australian place to get your Groceries; there is General Motors, an American Company, British Telecom a British company and so on. These are actually the old times, we and with us our governments have had this image. To some extent, an Ambassador still to some degree acts as an intermediary between cooperative businesses to promote trade. So companies get the support of a government enabling them to have easier access to business opportunities. Their importance goes back to the Italian renaissance, more notably when Vittore Carpaccio painted the ‘Legend of Saint Ursula‘ series; they are called Arrival of the Ambassadors, The Departure of the Ambassadors and The Return of the Ambassadors. Ambassadors were the dream of business as they opened doors for trade to commence and increase.

Today this is no longer the case, business has no affiliation to any government when times are good (when times are bad they whine for money and tax breaks), actually they always whine for tax breaks. You see, a company as many can see have only allegiance to their board of directors and the bottom line that they worship in a spread sheet. Today’s corporations are not linked to a nation or a location. Google seems to be the only honest one in that regard. They do not call themselves an American company, but a Global company. Their concept of location is fluid, it shapes to the need of tax relief and where the fastest servers are to acquire the data handed to them by well over a billion people on a daily basis. Yet, this is not about Google! This is about the way business is allowed to be done. In my view it has something to do with spineless politicians (not just in America by the way). As companies were allowed too many degrees of freedom, they opted personal need and gain instead of the greater good. This is not wrong or illegal, yet they use the facilities offered for them with all the freedom, which by the way is as it should be for the most and at the same time these companies syphoned billion through a multitude of tax shelter constructions, all perfectly legal. Did you know that hundreds of millions of people buy their downloads in Ireland?

An option to promote trade has for the better part of almost two decades been used to avoid taxation, not to improve trade and/or long term economic benefits (well they are, but only for the board of directors). The greed economy had been turned against the governments, most not willing to change in fear that they will walk away. This is one of the main reasons why America is basically bankrupt and not just America. Many of the commonwealth nations, amongst them Australia, United Kingdom and Canada who are feeling the effects of people buying online and these governments end up getting $0.00 in any form of taxation whilst the stores are shutting down one by one. HMV and the Virgin Megastores were likely two of the most visible victims of online retail changes, yet the online purchases ended up not having taxation of any kind, which does mean that a nation’s government is losing out.

My initial solution was to make a change that made any online purchase taxable in the land of the buyer, an idea that was never adopted, some thinking they ended up with more perhaps? But all lost out, as the e-Giants remained in tax sheltered nations. Particularly the US and UK missed out on hundreds of millions of tax dollars/pounds.

“Tax administrators face greater difficulties in enforcing tax laws and maintaining their community’s legitimate revenue base when dealing with international rather than domestic transactions, particularly when dealing with a jurisdiction that combines tax haven status with bank secrecy. Increasingly, tax haven regimes with bank secrecy laws in place are accessible to almost anyone with a modem and a computer“, which comes from Mr Carmody, Commissioner of Taxation. It was an Australian Taxation Office Media Release on November 11th 1997. So, this issue has been known for over FIFTEEN YEARS! Who else is late to the party? Well, that would be the United States of America, the United Kingdom, as far as I can tell Canada (not confirmed, due to a lack of knowledge of Canadian tax laws), Australia and this prestigious list goes on for a little while longer. Yes, we were getting played in a most auspicious way by whining, crying small minded board of director members on a global scale.

There is one more side to the first coin (source: http://www.internationaltaxreview.com/Article/3252311/VAT-considerations-for-e-commerce.html). The article subtitles drew me in ‘Nehal Radia considers the VAT implications of e-commerce and how taxpayers can take advantage‘. The article has a few good sides and they are worth reading about, but for me it helps illustrate another side, partially the fact that a view given here is not as I see it to be ‘the correct one’, which by the way, thuy were never debating.

Consider your own financial situation, you the reader. If you have a job, it is more than likely that you have not been getting too many job raises since 2012, yet overall, your rent, your food, your electricity and food bills did go up, in some cases by a sizeable amount. Now consider the quote “According to Forrester Research Inc., US e-commerce spending will increase by 13.4 % to US $262 billion this year, with an expected continuation in growth to $370 billion in 2017. In Western Europe, it is estimated that 2013 e-commerce spending will reach €128 billion ($165.5 billion), up by 14.3% from last year and with expectations of €191 billion ($247 billion) by 2017)“. Really? Do YOU have that much more to spend?

I do not think that this is the case at all, yet, I know Forrester and it is likely that these are indeed the numbers (if they did not make a weighting error). What seems to be happening is that e-Commerce is growing stronger and stronger as this group is avoiding VAT payments more and more, which means that shops are getting shut down as e-Commerce is passing onto you part of the VAT savings. Consider that VAT in the Netherlands is 21% and in Sweden 25%, how can a shop compete when these savings are to some extent passed onto the customer by the e-shop, whilst they can avoid VAT and they do not need a location with rent and electricity. Business views have skewed the market and governments are now losing out massively, whilst their own economy is also suffering under unfair competition practices.

If this is the first coin, I would call this currency ‘slow and asleep at the wheel’.

We are the second coin. Our view has for the most been to work hard, to get the job done and to bring home the bacon. It is a simple view, as we aim to be the ‘return on investment’; we create a comfortable pillow where we rest. Not because we are lazy, or because we do not do our part, but because we know that as long as we get it all done, our boss needs us. He had paid us a decent amount and as we are the cause for more income then we cost, we should all be in a great position. Guess what! We were stupid! Today’s management or better stated, whoever makes the coin decision tends not to be stupid, but to some extent short sighted. You see, he can get the same person in India, or that one person just leaving University, to do almost the same at half the price. Whatever ‘loyalty’ you think your boss has had towards you is no longer there, as we are no longer people we are just part of a spread sheet, as we cost more we get replaced to cost less as to not affect THEIR bottom line, which is usually their profit (read commission). There is of course an issue we should not forget, the economy is still bad, and yes, we have to accept that trimming the fat (the most costly employees) will also happen as some companies are drowning. They are now relying on image, without the revenue to support it. Yet, this is not about that side. The coin is on how we perceive on the company and how the company really is does matter, not how they do business. Is that so?

Is their corporate soul not depending on exactly how they do business?

It is hard to stay on this without getting into the debate on how companies sometimes make hard choices to stay afloat. It is more about the changed spirit of the business soul and how they hope that youthful ignorance might get them these 1-2 deals that keep them going. Yet there is a side which we seem to ignore. It is ‘interpretation’ of business.

Consider the Corporate Image Awards 2014 (something that was brought by the Frontier Consulting Group), a company that is actually an Indonesian company. In their ‘Corporate Image Survey Methodology 2014‘ they actually had a nice twist to this story. They stated for their fourth dimension called ‘attractiveness‘ two parameters, one was called ‘Dream workplace company‘ and the second one was labelled ‘Company with high quality employees‘. Here we see the crux. What is a high quality employee? One that looks dynamic (read 22-25), fast (read slim lined) and get the job done, which reads like within six hours and however many hours of unpaid time they need to finish the job before the deadline, or the veteran can actually get it all done in 6 hours. It is ‘the’ unspoken question that is here and is loudly ignored by those not willing to answer honestly and those who are very unwilling to admit the question, is actually a massive issue. ‘What is a high quality employee?’

I am left with two coins and a question. Are we, both the people and the government too slow to change, or are companies driving us to change in too inhumane ways to protect ‘their’ profit? I feel uncertain to answer it, there are unspoken sides that have not been dealt with and there is the need for greed by board members on a global scale which is yet to be properly scaled back, even in these uncertain financial times.

 

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August 26, 2014 · 12:03

About America, chapter 11

This is a short story; it is not part of a novel where you have seen the first 10 chapters. This is in all seriousness an issue when we consider Code of Laws of the United States, United States Code, number 11 deals with bankruptcy.

So why take my word for this? Why am I right, when every journalist, every economist claims that this is not the case? How diluted am I to think this?

These are all valid question. Now consider the facts. The US treasury (from various sources) had collected in 2013 around 2,700 billion dollars. This seems like a lot, yet the budget as President Obama stipulated in 2012, the budget had spending set to around 3,800 billion dollar, so the US is already 1 trillion short. If we consider the total US debt at 18 trillion, meaning 18,000 billion, then the total debt would need 100% of all taxation for 6 years, an act that is totally unrealistic.

Now take this to your own homestead. I remember that I could never get a loan for a mortgage for more than 4 annual incomes. Now, this is like comparing apples to oranges, but is my train of thought so far out of bounds? It is my view that these seemingly ‘clever’ economists have been rolling their gambling dice in several ways for too long.

Consider the Dow Jones Index. We get fed the line that the economy is good, because 30 companies are doing ‘well’. Ever since the ‘dip’ it took in 2009 to 6547 (at http://stockcharts.com/freecharts/historical/djia1900.html), the Dow has ‘restored’ itself to 16743 (as per now). So, in the time when all was well, before the first economic collapse in 2004, when the Dow was 11722, and until the second collapse in 2008 when the Dow went from 14164 to 6547 in 2009, we now are in a time when many in the US are down on their luck and finances, when many all over the world are feeling the brunt of recession and other financial calamities, the almighty Dow is at 16743.

Is anyone considering the notion on how dislodged the entire Dow Jones concept is in regards to the reality of life?

Consider the following information:

– Amazon is buying Twitch for a billion Dollars in cash (at http://www.theverge.com/2014/8/25/6066509/why-it-makes-sense-for-amazon-to-buy-twitch)

– Roche to buy U.S. biotech firm InterMune for $8.3 billion in cash (at http://www.reuters.com/article/2014/08/24/us-intermune-roche-idUSKBN0GO0PI20140824)

These are two of several (read dozens) of large shopping sprees, throwing cash around like it is nothing and as these billions come into the other parties’ hands, what taxation ends up getting paid? This is at the heart of the founding issue that should keep our minds busy ‘Is America Bankrupt?’

There are two sides. First there is the Sovereign Default. No matter how you twist or turn it, if a nation cannot pay its debt, it will default and should be seen bankrupt. A good example is Greece. After Europe bailed out a nation with 11 million people, by ‘giving’ it well over 300 billion, it is still complaining. The reality is that it should have been allowed to go under in bankruptcy. Not because I like it, or because I have anything against Greece (in all honesty, Crete is one of the loveliest places I ever saw). The natural cycle of economy has been ‘arranged’ (I would call it mismanaged) into cycles of only good news. You talk to any farmer, they will all tell you that no field can survive on spring and summer alone, nature is all about balance and as we threw away balance, we started to undo our own prosperity.

It is said that a business is stated as ‘insolvent’ when its debts exceed its assets.

Is that not the case here? I have stated in the past that I have reservations about the true value of LIBOR.

If we continue the question: “How much money they need to borrow from their peers to plug any holes in their balance sheets and if they have an excess of available cash, how much they can afford to lend“, which is at the heart of LIBOR (at http://citywire.co.uk/money/qanda-what-is-libor-and-what-did-barclays-do-to-it/a600479), considering that the margins had been played with in the last two years, is the idea that the total valued amount has also been tweaked?

This is all based upon an availability of actual existing Cash. But the entire system is based upon a certain value of assets and goods, as I personally see it, I do not trust that list as it is dependent on the ego of honest bankers, which seems an impossible concept and no one can produce at any given moment an exact list of it. So what value exists in all reality (not in the eager mind of a commission driven banker)?

We now get back to the Dow Jones Index. If we consider the past (when life appeared good) and the now where most of have lost a lot (if not all), then is that index not artificially driven upwards? This is not just my view; several parties, including USA Today (at http://www.usatoday.com/story/opinion/2013/03/04/federal-reserve–quantitative-easing/1963539/) are showing us a view that shows an economic system that is driven upwards in artificial ways. So we now get a different view. Are all these mergers and multi-billion dollar deals we see regularly now on TV about growth, or about the top of the US industry that seems to leave the sinking ships before the system collapses.

This is at the centre of a few issues, where the US is rallying for ‘support’ whilst not showing one iota of accountability to get its budget under control. The last part is at the heart of the need to call the USA bankrupt (not because I desire it). It will cost many a lot, but is growth not depending on the downfall of others? If we consider that all together we are 100%, does our growth not depend on the need that someone else does less? That intertwining, where we ignore basic foundations that growth is not eternal, we see that there is a consequence to overinflating (yes, this also applies to my ego).

Yet, economists have time and time again stated that there is more here and there (whilst they point to virtual spaces). Now we see the heart of the problem, who has the actual 18 trillion that the US is down for? If we look at the oil links, should USA perhaps mean ‘Unionized Saudi Arabia‘? If we consider the real wealth, are they not the ones holding the oil reserves (one of the big four) and as such, the outstanding debt? I know it is not that simple, it never is, but when we ask a summary of where the debt lies; we will get some clever list from a highly educated economist and some excuse ‘that it is all a lot more complex then it looks‘.

He is not incorrect, but he is also not telling you who hold the 18 trillion the US had been spending in one way or another and as such, the realisation should now be upon you. If America is bankrupt, then what will happen next? Japan will pretty much be permanently out of commission and I reckon the UK will be in very deep waters, but we the Commonwealth must find a way to go it together if we are to survive.

It seems to me that America never realised that lesson, like several others, they all used to max out a credit card in virtual space whilst the actual, supporting currency is not there, so why has America not been declared bankrupt?

I reckon soon enough we will get more and more long winded talks, but in the end no one is sayng anything because those who will be making the speeches are at the heart of what went wrong and no one wants to hold on to that guilt when those left without their house ask them the question ‘where are my savings?‘.

 

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January 17, 2014 · 04:20

Year of the last Euro?

Wednesday’s news on ‘George Osborne lays down ultimatum‘ seems to have remained a little quiet. So, was it all hot air, or are there silent runners under the waterline? The situation reminds me of a poster I once saw. It was a photograph of water, with the by-line ‘Submarine racing, a spectator sport!‘ I thought it was quite funny. Whilst scanning for the latest on this event, I find several people mentioning it, but no real update for a day. The Guardian article was quite informative (at http://www.theguardian.com/politics/2014/jan/15/george-osborne-reform-eu-quits-tory-dismantling ). However, I regard the BBC version of it a little better (at http://www.bbc.co.uk/news/uk-25740462)

The BBC article does however have two items I do find interesting, but they are slightly debatable.

The first one is “I believe it is in no-one’s interests for Britain to come to face a choice between joining the euro or leaving the European Union.” Why is it one or the other? In my view, the only part keeping the EU from collapsing is because the United Kingdom DID NOT embrace the Euro coin. I will get back to this a little later.

The second part is “The 28-member group also had to do more to ensure economic competitiveness with rivals like India and China, he added.”

I feel that the UK could become a lot stronger if the Commonwealth brethren embrace each other as family and as mutual protectors. This means that the UK should become the centre force in group that includes Canada, Australia, New Zealand and India.

In my view, the issue is that Chancellor Osborne is too adamant to sing-a-long with the American tune. I view this like a game of musical chairs. An iteration game of leave one out! The problem is that this game includes one chair that is only meant for the rear end of America, so it will always have a chair to sit on. They should not even be included in this game, but there you have it, for some reason they are part of the EU game.

So let us get back to the first part as promised. The EU (or EEC if you prefer), has 28 nations. In the GDP rankings the UK is at number three. The issue is that the top 7 has Germany, France, Italy, Spain, the Netherlands and Sweden (these 7 are 79% of the entire EU GDP). Only Germany is in a good position, The Netherlands is on the thinnest ice imaginable, whilst Sweden in its economic state seems to remain skating on the ice it has (for now). The rest has gone through the ice and are in a bad place. So, why should the UK risk it all and add themselves to a currency that is drowning itself because the local politicians refused to stop spending when they could, they kept on spending when they should have stopped and now they are in that bad place. Many should be thankful that the UK and Sweden are not part of the Eurozone at present.

In addition, Greece, according to Finance Minister Yannis Stournaras does not need any more austerity (Nov, 2013). Spain stated “The budget is based on a forecast that the Spanish economy will grow 0.7 percent next year, up from the government’s previous forecast of 0.5 percent.” (at http://www.nytimes.com/2013/09/28/business/international/spanish-budget-avoids-austerity-measures.html). Yet Bloomberg noted on September 5th “Spain’s bid to meet its budget-deficit target for the first time in five years is running into trouble, fuelling concerns that increased financial stability is masking deeper economic problems.” So, what is actually happening here? Are we witnessing new waves of creative accounting?

In light of all the bad news, it must also be noted that France is at least still fighting to keep the austerity in place, even though President Hollande is slowly becoming the least popular president in French history. I applaud him for standing firm and I do hope he will not share the fate of Louis XVI (a one-time treatment at ‘La Guillotine’). Italy is for now also on the Austerity track, but internal developments are not good and there are signs that Italy cannot continue the course it currently is going. So out of the 6 (not including UK) one is doing decently well, two are on the edge and the rest is for now in a bad place. This is not the time to switch currency, especially as the UK is slowly recovering, to add their heads to a block whilst the Axeman is spending the night away. It is more than just bad politics to do so.

So, we see percentages all over the place, but in the end, what does it mean? Well, let’s take a look at the numbers (as far as I found them, and a stern warning, the numbers are unverified and not from the best sources). In my defence, the numbers do not seem to be clearly presented anywhere.

Sweden, the smallest and not in the worst state is a little over 1 trillion debt at over 180% of GDP, Spain at 2.3 trillion, which is over 150% of GDP, Italy at 2.4 trillion, but interestingly seems to be at almost 100% of GDP, the Netherlands at 2.6 trillion, however the numbers I found place them at almost 350% of GDP, France is at a whopping 5.1 trillion and like Sweden around 180% of GDP, lastly Germany owns over 5.5 trillion at a ‘mere’ 140% of GDP.

Whatever some of these so called economists are trying to tell you (they are hoping you do not revolt against additional borrowing), the current nightmare is far beyond the issues you can imagine. the populations of Sweden is almost 10 million, the Netherlands is at almost 17 million, Spain 47 million, Italy 60 million, France 66 million and Germany at well over 80 million. You see, in the end, the taxpayer gets to deal with these trillions. So, a large nation might seem safe, but consider France, where austerity seems unbearable and with that sizeable population, the debt comes to over 74,000 euro per person. The average income for a Frenchmen is almost 32,000 euro a year (before taxation), which makes the debt more than 2 annual incomes from every implied French resident. So, when people get angry, they need to get angry at previous government administrations that had spent to such a degree that the current debt is unbearable! (Something I have mentioned in several previous blogs.)

This is also the danger of UKIP! I am against the UK moving out of the EU for several reasons, yet the changes could be forcing the current British government to consider the one step that UKIP desires most, what a mess that will make!

Part of the issue I am struggling with is actually in another article in the Guardian (at http://www.theguardian.com/commentisfree/2014/jan/15/europe-welfare-spending-george-osborne). I do not agree with parts of it, but the article is well written and the writer Alex Andreou does set out his position very well. So, please do read it for yourself. My issues is with “The fact that as a continent we have embraced values of social security and solidarity, a high standard of education and health for all, and dignity in old age, should be celebrated.” I am all for that and I am in favour of that too, yet governments all over Europe (including the UK) have overspend by such a massive amount that cutbacks in these times are extremely painful. I get it, but previous administrations lived under some umbrella with the picture of a sun, which they took as an eternal summer! Instead of caution, they ignored basic rules and just went all out on a spending spree. Now that all the money is gone, the coffers are instead filled with ‘I OWE U’ notes. When every nation spends more than they are receiving, no one will have any money left, yet governments started to borrow to one another. So, those in debt were borrowing massive amounts to one another, even though no one had any money, is no one catching on? This is my issue! I am all for social security, but if we do not have the money, how can we get it done? In addition, Latvia, the newest member of the Euro states (at http://www.bbc.co.uk/news/world-europe-25567096 ) “The former Soviet republic on the Baltic Sea recently emerged from the financial crisis to become the EU’s fastest-growing economy.” Is that so, in that regard we can read the following at http://www.baltic-course.com/eng/finances/?doc=83279 “The state budget is projected to have a deficit in 2014, 2015 and 2016, according to the medium-term budget framework that Saeima approved in the final reading yesterday, informs LETA.” so the newest member already goes into deficit from day 1? This is quoted in the following way in the article “The medium-term budget framework is based on the following GDP growth forecasts: 3.7% in 2014, 4% in 2015, 4.1% in 2016, 4.1% in 2017 and 3.9% in 2018.” so already above the limits as stated by Brussels. Compared to the top 7, the amounts they refer to seem peanuts in comparison (al 35 billion of them), the issue is moving forward and gaining economic strength, not add to the massive debt. As I see it, the Latvians have plenty to worry about and in my view; the UK and Sweden would remain well warned and not join the Euro.

Time to get back to issue 2!

I stated earlier “the UK could become a lot stronger if the Commonwealth brethren embrace each other“. As the issues evolve, the Commonwealth should revert to a new British Empire, but only in an economic way (undoing the work of Ghandi looks wrong on way too many levels). One of the big dangers is the Trans Pacific Partnership. Australia and New Zealand are in my view to eager to add their names to an approach that is all about keeping America in ‘power’! Why do I have this view?

There are several articles, but at http://www.businessspectator.com.au/article/2014/1/14/technology/tpp-trades-us-clout-expense-innovation we see some of the issues that will bug many in the Commonwealth.

The quote that starts to scratch the surface is “in 2009, total patent applications made through the patent co-operation treaty process from applicants in these nations also exceeded those from North American applicants for the first time.”

This is the fear America has, which is why they are so eager to get all the autographs. You see, as I see it, Americans became (or were in the eyes of some) complacent, lazy and greedy (the American industry, not the people). For example, as I see it, the IT industry took a page from the arms industry and stopped true innovation and replaced it with iteration. A disastrous step as you will soon see. The powers at IBM and Hewlett Packard, as I see it, decided to listen to military giants like Raytheon and Northrop Grumman. So, America went from the innovation based, which brought the leaps from the 386 through to the Pentium II, and we ended with iterations like I3, I5 and I7. Newly coated computers, which now move forward in stepwise motion. The issue is that Asia had a huge delay keeping up and this all changed as their comprehension improved, in addition, it is for technology insiders relatively easy to learn the path of an iterative technology. This is the first step of fear as America is now facing it. Asia has its own group of innovators and in my personal view the passing of Steve Jobs took away one clear path of innovation. When Apple moves in that same iterative path, the last true American innovator will be lost! Now Asia has a massive advantage and as such America needs to clamp down on whatever they can, with the massive debt and no clear future path their world will all be about Intellectual Property! The article touches on it with the following quote “But what if the real motive of one or more parties was to isolate, control, enrich, deprive, penalise and stifle? In effect, to put a toll on the drawbridge.”

This is at the centre, but not at the core of all this. That is why we see the mention that India is seen as a competitor, because for America, they truly are the new competitor. That deadly error was made by the American administration in 2011. Forbes tells us about it in http://www.forbes.com/sites/henrychesbrough/2011/04/25/pharmaceutical-innovation-hits-the-wall-how-open-innovation-can-help/. They published it in April 2011. That story shows only part of it. The quote “The patents granted to these drugs last for 20 years from the date of filing, and since most drugs take 7-10 years to get to market, the pharma companies have known that this moment was coming for the last 10-13 years. It is the logical outcome of a deeper problem, which is that pharma R&D spending has been less and less productive for many years.” gives us two parts. One is that there are clear indicators that the pharmaceutical industry has been working on borrowed time. The second is that the ROI has been dwindling down and that these corporations will face the horror of generic medication as several patents hit the end date in 2015. That means in just over a year, the largest maker of generic medication (India, in case you were wondering) will get to have a go at several extremely lucrative prescriptions. Perhaps you remember news messages on how the FDA was so against Canadian medications. I personally considered that entire issue to be a joke, but the underlying horror for America was already there. I mentioned in other blog articles on the issues I have had with the Dow Jones index (‘Start making sense’, 11th march 2013). Now consider that the three large pharmaceuticals Johnson & Johnson, Merck and Pfizer represent 10% (3 out of 30) of this index, so America is plenty nervous here. Now take into account that these three will have several expiring patents by December 2015 and that means that within months India could have a quality generic alternative, which is likely to be more than 70% cheaper. Now, be aware that a generic medicine is often less effective than the original. Still, the price difference is huge. It is not just the US; the UK has its own share of pharmaceutical makers, so the knife does cut in two ways in this case. Still, when we need to cut back again and again, India could be a good thing for the Commonwealth at large. So, even though some see the TPP as an option, there is implied evidence that the TPP could strongly block innovation.

How does this link to the Euro? No matter how we twist or turn it, the hard times America will face as it has been facing them for the last few years will intensify as innovation remains absent. That will hit Europe in several ways. The Netherlands already saw that as Merck shut down activities like Aspen Pharmacare. The intertwining of corporations on that level are all over Europe, and as such as American Pharmacies are hit, their European links will suffer a lot more because of it. So, yes, India is a competitor there, but the UK together with Canada and Australia could look for a cooperative solution with India and not see them as the competitor (as America currently does).

So is this all linked to the end of the Euro? Yes! It does however depend on the actions of the UK. If is stops membership, the run on the markets and the panic Germany faces could be catastrophic for the Euro, especially as Germany cannot rely on the pillars named France, Spain and Italy. The other nations are either too weak or too small.

Could George Osborne be wrong?

That depends on your point of view and your allegiance. The latter is implied as I noted the reference to the musical chairs with the one reserved seat. News messages like “the call to end austerity by ‘insiders’ from Brussels”. Yet, in the other light governments must reduce their spending and they need to get clever about it fast. The UK non-working military recruitment solution at 1.3 billion is just one clear example. Pretty much every EU country has its own skeletons. I see that the UK could be stronger as the Commonwealth nations take a route of preference to strengthen their economies, it is clear that such a path in Europe would remain stagnate until late 2015. That does not make George Osborne right, it only means that a European route might work, however it will be a long term path and switching to the Euro (at present) does not seem to be a stable solution for the UK to implement.

 

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December 11, 2013 · 18:26

The Holden circus!

Today there is an abundance of false emotions, stomping of tables and floors by theatrical agents. Yes, today the upcoming closure of Holden got announced. They are not the only one. Ford had already decided to stop in 2016 and Mitsubishi closed in 2008. Now, Holden will stop by the end of 2017. On an Island of 21.000.000, the three large makers get out. Is it a wonder? The economy is down by a lot! Buying cars is not on the mind of many. I get that there is enough space for one to exist, but do we really all need a new car?

This is not just about the economy; this is about need and offer. How viable is it to make cars? The initial idea that we need a car almost every year should have been abandoned year ago. The fact that we were hit by 0% finance deals should have been an indication. This is not just a view that is new. This has been going on for at least 2 administrations. It is so nice to see the amount of emotional lashing we are currently see on Sky News. It goes further. One mentioned that part of this had been known since 2007.

The one part I found most amusing was the speech by Paul Bastian. He is the National Secretary of the Australian Manufacturing Workers’ Union (AMWU). Sky News reported “Paul Bastian blamed the government’s refusal to offer more assistance to Holden and called on the government to ‘come clean on its vision for manufacturing.’”

This is in part the fault if the TPP. The TPP would allow for the American brand to be again an American brand, now through imports without severe import taxation, which is exactly what the TPP was meant to do. To be honest, this is the part I do not object to. In the end, if an American brand works from America, then that is how it is. If this is the way that American corporations need to operate, then that is just how it is. My issue with the TPP is and remains the unjust hijacking of innovation. This is not it. This is a business decision. I do not like it. Many Australians do not like it, but that is just how it is.

Getting back to Mr Bastian, I get that he is emotional, I get that he wants it to remain here and that the government should have ‘done more’. Are we to give Big Business a free ride? No! If one thing is a fact then perhaps that this is a signal for these Australians to sit down and create a new Australian brand. Get a national car, get the ideas together and create a new brand that could become the proud spearhead of an industry. Let us not forget that Holden (and Mitsubishi and Ford) have decided to walk away from 21 million potential customers. Germany had 10% of that when someone sat down, created the boxer engine and then made ‘Volkswagen’ a reality (by the way, the boxer engine would be the proud trademark of Porsche for decades). This literally translated into ‘car of the people’. With that they followed Citroen, who started 2 decades before that. These two would impact the automotive industry within 2 decades. So why look at General Motors holding your hand up like Oliver Twist asking for more?

Short and sweet? “Fuck ’em!”

There is nothing stopping us from creating a generic engine with the Kiwi’s and create a car that has a decent level of appeal to almost 25 million people. (Aussies and Kiwi’s).

 

In addition, there should be great laughter rolling from the interview that Sky News showed in regards to the reasoning. Questions like ‘If Mr Hockey had…‘ is just preposterous initially. Yes, there might have been issues, but when you hear about a 1 billion commitment towards that big business, we need to start asking questions.

The short and sweet of it is that America is BANKRUPT! With 17 Trillion in debt they are talking about 80 billion in less spending. When you are down 17,000 billion, 80 billion is less than 0.5%. So finally America starts cleaning up its act by calling back business and making then tax accountable. Is that such a far stretch? I think not and I do not blame them for that step in any way. So is it such a stretch for an Australian to create a new local brand that will support OUR industry, OUR people and OUR economy? This is what innovation is all about. Yes, our car, if released in 2016 might lack all the comforts, but so did the French 2CV. That became the future of a billion euro company. Nothing stops us from redoing this. In the end, the economy forced big business back to their local ground. Yes, they might lose 25 million customers, but we could create a new economy, a new future and new innovation. I say we look forward!

All what we see now on TV is name and blame by people making a lot of money, whilst the facts had been around for a few years. Ask how those high paid analysts did not see this happening! I am not stating that politics are free of blame, but in the end, this is the choice of an American car giant (General Motors), a step that others, including Japan (Mitsubishi) had already made.

So when some make some theatrical show of 500 million getting pulled out, we need to ask ‘why on earth do they need 500 million?‘ How about we create a new brand? Will Toyota pull out? Perhaps not! If Toyota is all that remains, we have reason to JUST support Toyota.

Now, in all this, let me be clear that I am not an automotive expert, but to hear all these people claiming that ‘big business’ is waiting on more support by government is just ludicrous. Yes, perhaps it is a tragic day, but in the end, Mike Devereux has to represent General Motors. The opposition is all about slinging mud, but this had been going on for a long time, whilst THEY were in charge. So this, as it is decided in just a few months that the Liberals were in charge, they move away.

What a croc!

This had been planned for some time. Detroit, being a bankrupt city is on the verge of being removed from the map. The opposition knew that more was going on. To see

When ABC had this (at http://www.abc.net.au/news/2013-12-05/holden-to-pull-out-of-australia-from-2016-17/5138942) the following quote was given “Holden says discussions with the Government on its future are continuing, and it says it does not respond to speculation.” this means that there was more and more was in play, and to see the blame by the opposition is just a joke. If we in addition consider the Herald Sun showing us thin almost a week ago (http://www.heraldsun.com.au/news/breaking-news/govt-opposition-deny-holden-pull-out-plan/story-fni0xqi4-1226776625199), we see that there are several sour apples in the barrel and there are some indications that it could be perceived that labour knew about much of this, but perhaps the game was played for future tax break endeavours.

 

In the end, I think that these acts are all about America needing now to desperately protect American futures (which I totally get), which is WHY the TPP (Trans Pacific Partnership) was so important to them; especially in light of export terms (not just the issues that the WTO discussed over the last month). We should also regard that this is only the beginning. Consider that Japan has equal financial pressures. What happens when Takeda Pharmaceuticals Australia Pty Ltd does the same? Will we get another emotional outbreak by Kim Carr? Will we get more number fidgeting (that is how I see it)? They all forget that such a step needs several months of considerations. This means that the start of this had already at a time when it was the Australian Labour government who was in charge and this should have been dealt with THEN!

Instead, Labour show them as playing the child tantrum, they should unite with the Liberals and open the doors for a new brand. Consider the consequences when General Motors needs to consider losing 25 million customers, almost 8% of the American population. Be clever, be innovative!

We, both Australians (and Brits too) have proven to be innovative. Now, the Americans have given us reason to be so quickly and clearly. Let us show them that we can get it done, preferably without needing 500 million more after a business had been established.

I am throwing down the gauntlet. Who is the innovative engineer ready to commit to his possible future Fortune 500 position?

 

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October 17, 2013 · 16:16

A new third World continent

At the final moments we see the news that in the 11th hour an agreement had been reached. Should we be happy? For now many will be happy, for now the Financial industry is relaxing and happy that their rent is safe, but the stress will return soon as the next ceiling will be reached in another 18 weeks.

So what is wrong with the USA today?

It sounds all fun and games to blame either the Democrats or the Republicans, yet overall, both have some level of guilt. Yes, at present the Democrats are wearing the hoodie of blame and shame, but the Republicans are not without issues either.

Consider that the government has maxed out the USA credit card. They have until now REFUSED in any way to take responsibility for the utter irresponsible spending. No, taxing more will not solve anything. That story is old, stale and redundant. If America would like to be taken seriously ever again it would have to cut no less than $350 billion in 2014. So, NOT more taxation, but LESSEN spending. That means if all was equal that every American will get $1000 less in support, which means that it would not impact the top 3% of the nation, but the others will have to pay. This is not me supporting the rich, this is me placing ALL politicians in a limelight where every spend dollar will be shown in the spotlight.

The Democrat story will be that they have a solution, and if these people pay just a few dollars more than….. It is nothing less than utter Bullshit! (Pardon my French!) With a debt of 17,000 billion dollar, a budget drop of 350 billion would mean that the interest of the outstanding debt could not be paid for.

On the other side, the Republican side will have to stop this ludicrous boast of less taxation. That is not, cannot and will not be a solution (for at least a decade). The debt must go!

But there might be a solution with the UN. When America has  been diminished to a third world nation, then perhaps the UNDP will offer support to the USA. I know, the irony of it all, go figure!

I have remained in favour of the US remaining strong from day 1; however, the Democrats refused to step up to the plate to do what needed to be done. The Republicans had stepped up to the plate, but in hindsight, the result was almost nil and they have not endeared themselves to anyone.

The voiced speeches by the Democrats as they are shown on TV stations all over the world today seem to be in bad taste too. I will make an exception for Democrat Harry Reid from Nevada. He had been in the middle in of what might be called a ‘small hell’. If the Navy Seals are used to be between a rock and a hard place, then this man outclassed them to several degrees these last two weeks, as a Republican minded person I will admit to that. I will go further to say that should Harry Reid go for the oval office, then he stands a chance to convert a decent group of Republicans too. Values like respect and moral coming from Nevada? What a tangled web we see!

For many non-Americans it is not about the pure Democrat versus Republican fight, it has always been about the massive debt and the risk they push upon many other nations. It is even a case that the voice of many non-Americans should be heard. When a nation like America has so many corporations that operate their business outside of the USA and as such put hundreds of thousands of workers on the spot as their futures are linked to the status of the USA, then they must realise that accountability remains an international factor.

On Sky News there is a hilarious movie, shot in old fashioned silent movie style explaining the debt ceiling. It is fun to watch and it tells the story nicely (at http://news.sky.com/story/1155554/shutdown-senators-pass-bill-to-avert-default), I do however disagree with one part of it. At 1:53 Ed Conway states one part I do not agree with. “If America was to default, it is not because it cannot pay its bills. It is because their political system would not allow it“.

That is the part that has been my major issue!

It is what I disagree with. If we consider the T-Bill rate of 2.66 (as it was this morning), to get the 16,700 billion in debt, to pay it back, if it was all in T-bills, then the US had to pay an additional 444 billion dollars in ‘fees’. This seems very very little. However, this was not done in one day; it was over many many years. The problem is that as risk grows, the people will be offered a higher return, because if the debt cannot be paid, those bills will become null and void overnight. In the end, that money must be paid and overall, even though for now it is paid, the outstanding debt as it grows and grows, will mean that the chance of EVER paying it all back will become less and less. Consider that the following amounts are due: 2022: $1276B, 2021: $1228B, 2020: $1652B, 2019: $1885B, 2018: $1017B. So from 2018 onwards, the returns will have to be paid to those T-Bill owners. The amount will be in access of 1 Trillion dollars a year. Can anyone explain to me how that payment can be met 5 years in a row whilst the on average the collected annual taxation in 2013 will be an estimated $1.9 Trillion dollars? This means that from 2018 onwards 53% of all collected taxation will go to people owning T-bills. How unrealistic a goal is this?

This is part of the reality politicians ignore (as they will not be in office when it happens) and the people who gets settled with the bills will not have anything left.

Consider in addition that the Tax evasion bill has not been pushed into effect (which means the rich will continue to have additional tax shelters this year) and the Dodd-Frank Act is STILL not active, giving the financial sector too many non-accountable freedoms (which will make sense late on). If you want to know more about the Dodd-Frank Act, take a look at the next link, it has an interesting cheat sheet on the latter one. (at http://www.mofo.com/files/uploads/images/summarydoddfrankact.pdf). Morrison & Foerster is a global law firm. It might have been for internal use, so send them a thank you note if you download it. It is the easiest read in regards to this topic I have ever seen. They also have Patent and Trademark litigation, so I should send them my resume when I get my MIP after my next semester. Cool!

If you wonder about that reasoning after my strong voiced disgruntlement, then remember that the US is a great country. In my mind it was sold down the drain by politicians and exploiters. If we muzzle the first and neuter the second, the US could be a great nation quite quickly again, which would be good for Europe too. A win-win solution I say!

So why aren’t more people nervous about the entire deficit and debt ceiling? That is the part that does not make sense to me. Rolling over debts is a dangerous habit. The definition is clear enough, the dangers on adverse percentages is even more risky as politicians played 11th hour resolution makers. The second part is one that many more are ignoring. This is all based upon 100% of the due payments rolling over. What happens when another nation has a slightly stronger return? What happens when only 80% is sold? Is that such a hard concept? So at that point, where will the required $200B-$275B come from, additional raise of the debt ceiling? I have no actual facts to work from, so I do not know what the level of risk is, but consider that between 2018-2022 no less than $1T in investments are needed, and that the larger wallet friends (like the UK, FR, DE, IT and AUS) many of them at the maximum tapped out amount. How long until THEY (read governments) start the ‘swap’ game? Is that not how we lost most of what we had because we could not control the banks, now we let them advice on the same game, but now with full government budgets? So, we will not be looking at just a few trillion, when that game goes bust (and such a game always goes bust), the population will be stuck with a bill between $70T and $90T. How will we survive that?

Let us not forget that all those actions are taken in closed rooms with only a few insiders fully in the loop. If the next election causes reasoning for full disclosure on such events and only a referendum will allow for this, then the game will not just change fast, it will leave the USA on the outside looking in. A fact is that this risk grows almost exponentially each year the deficit is not dealt with. If Germany has been under pressure for the EU issues from Bernd Lucke and the UK from Nigel Farage from UKIP then we should expect additional players who will be fueling these fears. The upcoming price fight might not yet be the main event, but the debt ceiling issue that comes after the one on February 9th will be a main event and it will likely involve more players then just the US, several of them are unlikely to be one of the 18 Bernanke disciples.

So here we are, and only hours after Jill Treanor wrote her article ‘Financial Conduct Authority launches currency markets investigation‘ on the Guardian at http://www.theguardian.com/business/2013/oct/16/financial-conduct-authority-currency-markets-investigation-benchmarks.

This is a must to read!

Guardian’s Youthful Young City Editor, all complete with her own copy of SAS Miner plugged into her brain started today with “Suspicions that the vast global currency markets may have been rigged by major banks and traders has sparked the City regulator to launch a formal investigation into the £3tn a day market.”

This goes way further than just the LIBOR scandal. Earlier this year I had some doubts on all of this. My doubts were not on the interest part; my thoughts were that the main amount involved, which the percentages were based upon had also been tampered with in some way as well. I still expect my $1T bonus when that gets to be proven!

So what if the benchmark is not JUST the foundation, but part of more. You see, if we consider that governments have been involved in T-Bill Swaps, then the tradeable amount involved is not correct. More precisely, if the volume of T-Bill swaps is to the amount deficits go, then in which direction are the percentages rigged? It might accidentally involve the ‘accidental’ mentioned group of larger wallet friends. Now consider that Germany at present is the only one with an economy more on the stable and positive side then all the other players. So, would there be additional benefits for them in the long run? I actually do not know this (self-confessed lack of economic education), but the fact is that these issues go far beyond the banks themselves. Perhaps that is why the Dodd-Frank Act was never activated? It is just a thought.

So my advice for today, instead of long term investing your $5, this morning, have a pastry with your coffee, because at times there is nothing better than short term gratification and pastries will usually do the trick.

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