Tag Archives: Australia

May 18, 2014 · 12:07

Are we getting played?

I have been away for a little while, which happens! We all have priorities a times and for the most of us (including me), when we are not directly involved in an issue, we tend to ignore them. This applies for me too. Yet, the news as I saw it last night was a little more then just uncomfortable. Last April (the 15th), I wrote the blog article ‘Facts, Fiction or Fantasy‘. I got two responses on how ludicrous the ideas were and as they were just filled with profanities, I decided to trash the messages (it is my prerogative to do so). In the article, I mentioned on how Greece had started to sell bonds again. Their credit rating seemed to have gone up just ever so slightly. Now I read that over the last two days that bank shares have fallen 5.66% and 5.79% respectively. The first complaint that I am likely to hear is how these two are not the same and one does not mean that the other is true, which is correct, but consider the following. A bond is nothing more an ‘I owe you’ between the seller (the Greek government) and the buyer (the investor). The investor relies on information like credit ratings (from places like S&P and Moody for example) to make an assessment on how realistic the investment is. The fact that almost a month later the quote ‘Greek lenders are likely to face large losses over the next two years’ is seen, gives rise to the question whether any upgrade to the credit rating was valid.

Basically, the values of bank shares have diminished by 11% in just two days. How are we getting played? Consider that the banks are dependent on governments, consumers and others to survive. The fact that they went down 11% in two days in a month after the government sold another 5 billion in bonds is not unrelated. The fact that we got informed by the IMF (a ‘prediction’ which is bogus in my view), on how economies were getting better (they stated: “17 out of 18 economies would be positive economies in 2014”), was already not realistic, now we see the Greek bank shares drop and next, in regards to current credit ratings, Ireland now ‘suddenly’ gets a small upgrade.

The question becomes whether rating offices (like S&P and Moody) engaged in what I personally regard as a ‘criminal endeavor to perpetrate a fraud’ against the people of these nations? More important, are they servicing the American banking moguls in that respect? Let me elaborate on this thought. No matter how the American economy is seen, the USA treasury coffers are far beyond minus 17,000 billion (= 17 trillion). The interest on that must come from somewhere and the USA is not likely to be able to afford any level of paybacks for a long time to come, especially considering that this administration has been unable to achieve any kind of balanced budget from the moment they came into office. This is nothing compared to the total USA debt which is somewhere between 50 and 70 trillion (I have no reliable source on what that actual amount currently is). The idea that the EEC might fall apart must be a Titanic sized Wall Street nightmare at present. UKIP is growing (for now) and the French Front Nationale is definitely on course to become the leading French party. Both parties, as well as the Dutch PVV are all in favor of segregating away from the Euro mess and if that happens, the American goose is truly cooked. If they (the financial institutions) are playing a game where too many nations have added even more debt, then the chance of moving away from the EEC is less likely as it would become too unrealistic in regards to the costs that would be incurred on the French and British coin when the total EEC debts are spread around, which might be the game that is currently being played.

It is likely that my thoughts are completely wrong and so out of whack that they only belong with the conspiracy theory magazines. Yet, when we see the debts these places are in, then upgrading any level of credit is just utterly insane to begin with, so I might have something here.

It is not just the issue on ‘how’ or even ‘if’ there is any form of economic growth, the issue is that the outstanding debts are a local responsibility and in stead of push it forward to the next government in place, these governments (all EEC nations) have a sworn duty to stop handing debts onto the next generation. They have a solemn duty to lower the debt. It is not their responsibility to enable multimillion-dollar bonuses to financial groups. They must lower debts. We as people are not here to cater to a group of what I regard to be as flaccid US economists, we all need stronger economies and increasing debts are no way to get to these stronger economies.

Here in Australia we see the objections on the harsh measures that are now being taken by treasurer Joe Hockey. I agree with him to a larger extent. I have zero sympathy for the honorable Bill Shorten (The initials BS are interestingly fitting), on how campaign promises were ‘broken’. He should remember that it was HIS side that had overspend by hundreds of billions. Money their side did not have, so after dumping a car mess and debt mess on the Liberals, they are now crying in opposition. The added mentions by Chris Bowen are equally a joke as this is a Labor mess that the ALP members are now trying to resolve. None of them seem to mention that it was THEIR party in government that had spend the money they never had. Perhaps Labor should consider answering questions on how these issues, which were known long before the election started, should have been resolved before the election started. They will not have any answers there. They overspend and WE (the taxpayers) are now burdened with fixing these issues! In that regard Australia seems to be taking a leaf out of the book or Chancellor Merkel, who through massive austerity directives got the German economy in a much better shape. I feel relieved (even thought it hurts me too), that the ALP is now fighting to get the Australian economy stronger and the coffers of the treasury out of debt. Personally I still believe that when (not if) the US Dollar collapses after the first loan defaults, any nation in massive debt will learn the hard way, the price it faces when the debt is due. Those without debt will get to call the shots for the future and personally I will be happy when we will be sitting at the global governing table where we can choose what will be best for us. Those at the table without a coin should remain silent at the table, those holding the loan slips will get to decide the future for all others, a lesson that is likely to be humiliating and no fun for the citizens of the involved nations in debt.

In the end no matter how good an economy is, the upcoming profit will go to whomever they are indebted to for a long time to come.

It is not a nice solution and in these times it will never be a nice solution, but it must be solved and whilst we might see the insulating joke scandal that had cost money and lives are another side how the Australian Labor party had failed the Australian population. This is not just me bashing the Australian Labor party (no matter how entertaining that exercise is), Bowen is an economist and as such he should in my eyes know better then to proceed on the outspoken track he seems to be. The question in this regard is who Labor was listening to whilst Labor was governing with the fighting twins at the head of that table (Kevin Rudd and Julia Gillard). I feel certain that during that term someone was advising the treasurers Wayne Swan and Chris Bowen (which would be a perfectly valid act), who were the advisors in those years? We can all agree that even though overspending by hundreds of billions is a really bad idea, claiming it was only the treasurers act is just folly! Someone had an advisory plan and the Australian people has a right to know who that was, especially as it is Chris Bowen (former treasurer), now claiming that current affairs are so out of touch with reality that he is rallying the people against the ALP at present. I do think that some cutbacks are too harsh, yet, as I see it, Labor has no right to speak out, as these matters would not be the issue if they had not overspend all these billions.

This is at the heart of the matter; it is about the advisors behind the screens.  We need to see and hear those names! When we seen the list of advisors in that regard (on a global scale), we might be able to start painting a picture. There is even a chance that this picture is a lot more incestuous then a global view of Market Research, but we will decide on that when the picture is drawn.

We can all agree that governing parties are in need of advice and as such, they draw a plan, which is/was executed. So where did the debt come from and who did not close the wallet in time? If that was just the treasurer, then Chris Bowen has in my view no right at all to be this upset as he was the previous treasurer. That part is exactly part of the pain that is playing in Greece and perhaps soon in Ireland too. Where are the people behind the screens? If Sky News is to be believed then the prospect that ‘Greek lenders are likely to face large losses over the next two years‘ shows that upgrading the credit rating of Greece and the subsequent selling of billions in bonds was more then just a really bad idea. It boils down to another example of bad news management. I wonder whether investors would have a claim if they lost money on the purchased bonds only one month ago. Should my case be proven, it should also be clear that we should see the names of those ‘advising‘ on increased credit scores. I do not mean the names of the companies, but the names of the individuals who signed off on that news. Just like the names of the EEC economists that claimed that 17 out of 18 economies would grow in 2014 (mentioned in my blog on May 8th called ‘Public Naming‘).

It is time to shine a light on those who are the cause of many governments overspending their budgets by a lot and on those ‘analysts’ who seem to decide on how much an economy ‘should’ grow, especially as they drop the value of Twitter, who grew revenue by 119% (an amazing feat), which amounts to almost a quarter of a billion dollars. In my view, we the people are getting played by a select group of ‘economists’, who seem to be making more per person per month post taxation then most of us make in a year pre taxation. If you think I am kidding, then consider that the $5 billion in Greek bonds from last April represented a bonus value of $50 million; do you still think I am kidding? When Ireland ‘suddenly’ starts selling bonds, remember that someone will end up with up to 1% of that amount in commissions.

We are all getting played to some extent and it is high time that this stops before we end up paying the bills of other people’s overspending spree! Getting out of our national debt should be our only concern until this is achieved. A goal that should be shared by all the EEC nations as well.

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May 3, 2014 · 14:18

Lessons not learned

As I look back at the end of a lifetime and I wonder whether I am just nuts (which is always a fair assumption), or that others are just unwilling to see the implied fact that we have stopped evolving. Many lives are basically based upon bread and games, a term that goes back to the Roman Empire and seems to be at the very core of what is happening at present in many areas when we compare ourselves to people in the Ukraine. The ‘free’ west seems to be focused on sustenance (a basic need for surviving) and TV. The TV is even showing some gladiatorial show, where people do some kinetic steeplechase for the glory of fame and fortune. I have nothing against the game. I have seen it; it was fun to watch up to a point; and when we switch to some cable channel we are likely to see a TV series that we saw before, a series that is rerun again and again, whilst not showing the latest seasons, but leaving us 2 or more seasons short (depending on the station and the series). We get to see those episodes, whilst the rerun is not giving us the last 3 seasons of NCIS, the last 4 seasons of the Big Bang Theory and so on (it is a very long list).

The top of this consumer pyramid scheme (politicians, board of directors and so on) goes on planning for additional wealth, whilst the rest is getting outdated TV and they are just trying to make due.

That view is getting stronger and stronger as we are confronted with the escalations in the Ukraine. There are two sides that propagated these thoughts. The first was something President Obama stated when he addressed the press. The quote “this week to implement the IMF plan to stabalise the Ukrainian economy“. That part got to me. The US is getting all huffy and puffy about more and more sanctions and actions to get the Ukrainian ball rolling, so that the IMF can spend billions upon billions in some way. WHY?

Chancellor Merkel, like many European spokespeople are trying a softer approach. This is not about which method is better, but about the fact that this is more about the IMF and that what we might laughingly regard as the Ukrainian economy then about anything else. Does anyone remember a place called Syria, where even today people die by the dozen in a civil massacre between the forces of President Assad and their opponents? The ‘crossed‘ red line, even after the second chemical attack is not getting too much visibility is it? Did the powers that want to control forget about those events?

Even more important, the fact that the separatists took out 2 helicopters with missiles (not clear which exactly), is not a reason for stronger concern? I am not accusing Russia at present, but where did these separatists get the weapons to shoot down two helicopters? As I see it, pushing billions into an area that has no stability is just a really bad idea. It seems to me that these issues are not really focussed on. In addition, the NOS news showed us small video bytes of news moments where we see members of US Congress, where they seem to advocate stronger measures and stronger responses. More sanctions, against whom? It seems that the people outside of that circus are ignoring an economical and political play which could hinder their own futures for at least another decade. The fact that Europe will go for another round of dealings for cheap Russian gas seems to elude many people. The US might really like the idea that Russia Gas is turned off, it will give the US the economic option of selling gas to Europe, which will hike the power costs of Europeans by a likely 15%-20%, did the people on both sides of the Atlantic River realise that these events could have long lasting consequences.

Getting back to the Ukrainian issue, I have stated before that the Crimean people were the pushing power to the annexation of Crimea back to Russia. In my mind the Ukrainian government only had itself to blame there. This view is not one I have when we look at the issues in Eastern Ukraine. I cannot deny that Russia is playing a game here, but what game are they playing? Whoever is playing out these events in Eastern Ukraine is doing so on a few levels. First, these are not just all Russians or Pro-Russian separatists. There is equipment, there are droves of people in their support and the events in Kharkov (where a mayor got shot and we see a change of those in charge) also imply that there are levels of orchestration in play, but those behind the screens are not shown.

So why is it so important to get the IMF in there at this point? I am not stating that the Ukraine should not get support, but the EEC and the IMF are so busy getting in there as quick as they could, that we should consider the history on Greece and Cyprus as well. The IMF came in after the fact (which is fair enough). It seems to me that the Ukraine is about something more then ‘just’ the Ukraine and as such questions should be asked. This will all take several other cycles of information crunching when we see that Serbia is also voicing on their upcoming EEC membership. How is Serbia’s economy and how are their balance books?

Is this all about the economy or are the political power controllers in the US not telling us all (the use of political controllers was intentional for those who missed out on a few events). I have stated in the past that from my viewpoint, the US is past its point of bankruptcy (but what do I know), the link here is that the analysts and power brokers downplayed UKIP in the UK and Front Nationale in France. This economic nightmare that Wall Street said could not happen is currently no longer that unthinkable, which makes me wonder why those analysts are on a high 6 figure income. The Farage party is still a strong contender at present and Front Nationale has already made a first sweep in France and the party under President Hollande is now seriously worried. When these two do achieve the drastic change they want, the bang that will sweep the European economy will have a massive impact on the US as well. Perhaps they want to add Ukraine and a few others as soon as possible to soften the blow and to keep alive what will then soon thereafter be known as a puppet currency, which requires the IMF to step in, in as many places it can, so that whatever crash the economy makes then, it will be supervised by one voice that is not the US, the IMF (with the US having the most powerful voice within it).

So in my view, these events are not directly linked, but they have bearing on each other. Is this why Eastern Ukraine is so adamant about no longer being part of the Ukraine? That last part is pure speculation on my side as I have not read any quality reading on why the Easters Ukraine is so militant at present, but it is not just about someone else running Kiev parliament. The reasons are far too militantly played for that. This does not mean that Russia is innocent here, but considering just how much intelligence is gathered on several levels for so many years and on how ‘silent’ the CIA and other players are in that regard. We see the news and we see all those references to keyhole satellites and even as we all knew that Syria was such a powder keg, no one saw anything in Syria. Now we see these escalations in regards to Eastern Ukraine and again, no one seems to see anything here either. So what are those keyhole satellites doing and why are they staying silent. Did no one consider asking that 143 billion dollar funding question?

So why do I care so much about this?

If the Commonwealth is to remain a top economic player, then we must see, acknowledge and consider the options we have and as the UK was never part of the Euro, their currency is safe, but their economic position less so. The UK cannot keep on paying these outrageous amounts, whilst for the most; the EEC members do not keep their budgets in order (they overspend close to 600 billion too much in 2013 alone, this is including the UK). When the Euro tumbles and the Dollar gets the pounding of a lifetime, we must consider what is right, correct and the best for us. Within the Commonwealth those options might be limited to some extent. I always believed that if we as Commonwealth nations (Australia, Canada, India, New Zealand and the United Kingdom) as the top economic nations of the Commonwealth pull together, we can weather all these economic storms and help ourselves to a larger and faster recovery to something better then it is at present. Should Nigel Farage pull of the referendum the way he wants it to end, these levels of cooperation would become vital to the UK. I speculated in the past that the crumbling of the US as a super power would instigate a new coalition of perhaps Russia, China and India (purely speculative on my side), then the Commonwealth link would become even more important. These events go further then just some super power game. The US remains so eager to push the TPP (Trans Pacific Partnership), in there the changes they were considering to Patent Law and Intellectual Properties in general are a concern to many. The face that Australia seems to have blindly accepted it, whilst New Zealand asked the questions and had the reservations both should have had to begin with are also a fact. America fears the abilities that India now has in Generic medication. India sits on a goldmine in an age of faltering health care and the overwhelming need for lower cost solutions in an ageing population. The US pharmacy was dormant for too long, new solutions are delayed again and again. Not unlike the IT where American superiority was boasted and whilst the American Industry embraced iterative evolution, was equalled and now to some extent even surpassed by Asian engineers, the Pharmacy field is in a similar, but not the same predicament. So whilst they focussed on the erectile need of Wall Street, India grew its generic enabling markets. Now America has a problem and the 14 year patent edge will no longer suffice and in the time several players went for the greed driven iterative plan, now slowly are finding themselves on the outside looking in.

This is exactly why the US is in such a state to drive these issues. I reckon that they never expected to be so linked to the Euro and their consequences. I personally feel that not keeping their financial house in order was at the centre of these reasons and like Crimea, it returning to the Russian fold is the worry of the US as the Euro could ‘collapse’ when nations decide to reject the Euro and return to their original local coin. The UK kept the Pound, but when France moves back to the French Franc, the currency that is no longer supported by two major economies will entice others to follow suit. The Dutch PVV has had several investigations to dump the Euro and return to the Dutch Guilder, when that happens party of Geert Wilders (even though the Dutch economy is small in comparison to the large four), the German corner could end up panicking and could move out to preserve itself, is that all such a long leap of faith?

This all will hurt the US in many ways. Now, it no longer aligns it’s maximum borrowing power to one currency, but to well over half a dozen, which should collapse their spending spree for at least two decades, more if the US defaults on even one loan. Consider in the second degree what happens when S&P will have to return to the comparison approach it employed before the Euro was adapted by many European nations, the impact could be massive.

So as the bulk of the people are asleep, relying on bread and games, the powers that would like to remain in control are playing high stakes poker as it is others peoples money and they will not pay the bill when the deal goes sour. We all must do what is best for us. The UK, the Netherlands, the Ukraine and the US. They all have to make their own decisions, whether they are valid for others or not. That is what many forgot as they all were trying to play a game on a global scale, with them all having themselves in focus. Crimea did what they consider to be best for Crimea. Most people forgot about that part, even Kiev forgot about that side of the equation, which makes the entire escalation part even sadder. So, should you consider my view to be invalid (which might be fair enough), consider the amount of actions, many debatable on both sides of the Ukrainian aspect. Consider the amount of NON-actions that were taken during 3 years of Syrian slaughter (on both sides). In my view, just focussing on one part of getting chemicals out of Syria (which is essential), whilst a second chemical attack took place (which had almost no coverage) looks like a joke to me.

Even now today (less then an hour ago), we see Ukrainians acting out against Ukrainian tanks, does that remind you of other similar events?

What lessons are we not learning?

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April 15, 2014 · 11:44

Facts, Fiction or Fantasy

It is the elementary consideration of the three F’s, when we look at the information in regards to the Ukraine. It is not whether we give value or credibility of the news we see coming from Sky News, the Dutch NOS, BBC, CNN or even Fox News. There is a side that remains largely unspoken by many of them.

We see the news on how it is written on how these poor, poor Ukrainians are getting pummelled back into the anti-freedom group called ‘the Russian Federation’. Is that actually a truth?

Yes, we all notice on how well organised and well-armed these pro-Russian antagonists are, but are we seeing all the information correctly? Consider that not a few or a dozen people are in favour of these so called referendums, no; the people are out and about in hundreds and thousands. Many are singing their ‘old’ Russian songs and anthems. This is at the heart of the missing information. Consider that we see a lot more US involvement, whilst Kiev is now asking for the ‘Blue Helmets’ (UNIFIL) intervention. These people are about to get more support in 2 weeks, then the entire Syrian nation got in three years. I hope you remember that little escapade. It is still going on and the amount of casualties remain rising in Syria.

So, why are we all up in arms about Ukraine? Is it because some in Kiev want the European values and we are so upset about those who do not want to share ‘our’ way of life? Consider that the news has all been about implying that these acts are all orchestrated by the Kremlin and whilst it sounds really fun to hear about some politician who is about to get his assets frozen, nothing real can be done. By the way, can anyone tell me when the American Politicians or Wall street big bosses got their assets frozen?

The Ukrainian mess is blowing out of proportions in two ways. The first was the start of the Crimea and in specific the way the west and others responded to the events. I will always consider the fact that Russia did have some involvement here to some extent. The reason is that not having their fingers on the pulse whilst there is a massive naval base there is just not an option. They might not have intervened, or they remain silent on actions, but they knew what was going on. It was in their interest to pretend to be the non-observant here. Yet, that story does not reflect on the other parts of the Ukraine. A simple look at the map can tell us that. The Crimea was a military power point; the rest of the Ukraine is not. It is so simple for Russia to stand at a distance as see this all go up in flames and then offer ‘humanitarian’ aid.

The part that western news is ignoring is the shouting of the people that they have had enough of Kiev corruption. In their mind this will only lead to even worse times. Can we even blame them? Look at what the IMF has wrought (not through their actions through), Greece, Italy, Ireland, Spain and Cyprus. Massive debts, then IMF/EU financial support and after that austerity and continues after it started to choke a population. Government administrations get re-elected, no one goes to jail and some end up with a massive amount of money and favours. Is it such a leap of faith that Ukraine, a nation where corruption is such an issue, a place where now its population is just too scared to see what happens next? Consider the news in the last week, where we read that Christine Lagarde stated that the IMF was no longer forcing structural changes (http://www.sbs.com.au/news/article/2014/04/13/imf-no-longer-forces-structural-change). Was that just a small illumination of change as fear is gripping certain population groups? Consider the statement that was given last week that ‘the IMF was a victim of US politics‘, it is enough to scare many people. The statements of the IMF, which were also stated by Australian Treasurer Joe Hockey, that the US seems to be playing their own political games on regards to the IMF. None of these issues were raised, even though it is stated in several sources that the Ukraine is about to receive 9 billion in aid from the IMF. Now, I am not objecting in regards to the aid, yet, whilst it is known by all the players above a certain levels (at least 4 levels below Lagarde, Obama and Putin), that the Ukraine has a history and environment of corruption. None of that is properly addressed, so whilst 9 billion will go to the Ukraine, how much will end up out of the hands of the corrupt? Misreading gas meters, government invoices and the list goes on, how much of those will get paid by the 9 billion? Still wondering why the Ukrainian people are so anxious?

None of these matters are looked at (with proper levels of investigation) by the press, which makes for some of these newscasts a negotiable level of ‘pro-western’ advertisements, making the situation worse.

What the press is unwilling to illuminate, is that at the centre of these troubles are the pro-western politicians. They had no issue disposing of its former president, yet when they themselves are rejected by the Crimea and as it seems by the people at large, everyone shouts foul!

That part is an issue, no matter how many journalists ignore it. It is of course also a nice point of light as well; my income might drastically improve if the cold war is back. There is of course the badge of benefits we see with new movies (like a new impossible mission going up against their old adversary), the video games and in my case more data analyses. All those international locations that would need Palantir Government installed, trained and consulted upon.

Is this the reality? I do not know, the pressure between east and west is growing, so it remains a consideration. Consider however the events in Syria and that red line that was drawn (by the US), nothing happened. Is it because US intervention might get some of their oil benefits revoked? Is Syria not an interesting nation? (Which seems odd, as the pressures there would influence their long-time ally Israel.) So what is the press not investigating and what are we not getting told in this instance?

Consider that when you watch the news tonight and listen to what they say exactly, because you will hear suppositions and carefully phrased implied events, but where were the facts and more important, why are we not getting all the facts? That last one is important, as it turns a fact driven newscast into a work of fiction or even fantasy, which is getting the Ukrainians so angry and bothered.

In the end I still ask the question that is at the centre of this all. Why did the EEC not let the Ukraine be? This is not a statements against dealing with the Ukraine as a business partner, but in the light where the economies are down to such a degree, when the EEC is still dealing with the new partners and the overall debt levels are far exceeding acceptable levels in many of the EEC nations, growing is not a solution, it is a sure path to implosion, which will leave most of the EEC in a destitute state. That part is also seen as the two big national influencers, namely the French ‘Front Nationale’ and the British UKIP. When they do get the referendum to fall in their favour, the EEC will be in a mess that they will not be able to fix. Is the adding of as many nations as possible a desperate act to float the EEC at that point? (That was an actual question I am phrasing myself!)

The last one is likely to be a mere speculation (read fiction), from my side. Yet, considering the steps as we saw the EEC change and grow from 2008 onwards, after economic blow after blow. Now Greece is selling bonds again, whilst at present, their economy is in no way ready to deal with the old debts as well as the additional new ones. Are you still surprised to see the Ukrainian actions?

I am not stating that Russia is in such a great state, but there is every indication that they are not in a bad state either (with massive parts if Europe depending on Russian Gas), add to that, the fact that the Middle East is now diversifying by making Russian arms deals and other deals, which should indicate that they will order less from the west. Cars, electronics and other needs are now more and more moved to Asian makers like China, India, Myanmar et al. Some was already there, but slowly the list of migration is growing. Australia will lose massive amounts of jobs as the car industry moves away (not one brand, but all brands within the next 36 months). We see that airlines are slimming down and as the news reaches us day after day, often just after some ‘good’ news reached us, the balance is not looking good. The west is becoming less and less the place to be.

I do agree that the economy is slowly getting better, but it is also changing. Both have an impact on most of us and I still believe that actual economic improvements are not enjoyed by many of us until late 2015. All these factors are linked, as they are told to all. This is because the Ukrainian people are also watching the news, reading it on the internet and the picture shown is not a good one. So, when they felt that they were about to get the short end of the stick, they all rose up, because the devil you know (Russia) beats the devil you don’t (EEC). That part the big bosses all forgot about and when they applied pressure, they lost the Ukraine. Now the escalations there might not be so much orchestrated, but the stories, as they came from their ‘new’ government is sounding less and less honest in their ears. They want the old days back and in all fairness, can we blame them? Moreover, are the involved nations even happy to add another nation who is on the brink of bankruptcy?

These questions have not been dealt with at all. The last one is one we should all ask ourselves. Why intervene in the Ukraine, whilst politicians have no solution at all for those in hardship and dying in Syria? That issue reflects directly on the people of Jordan and Palestine, especially after a second chemical attack, whether we believe these events to be stories of fact, fiction or fantasy. We are witnessing iterations of ‘the cost of doing business’ on a global scale. It is however the local people who pay the bill through taxation and the Ukrainians seem to be very unhappy about the changes and the bill they will get presented with.

 

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February 12, 2014 · 19:13

The last Australian car

Australian news has been all over the place. The one thing that is so expected is now on the fritz. Car makers are moving away from Australia. The events have not been out of the air, but what has been a revelation, is the amount of ‘subsidies’ the government had thrown into that direction to begin with. What can we (me, myself and my sources) tell you? First, the four big car makers in Australia were Ford, Holden, Mitsubishi and Toyota.

1. Ford
Last year, Ford announced plans to shut its two Australian plants in October 2016, blaming strong currency as well as high production costs that are hitting the manufacturer. These are all decent reasons, but I personally do not think that this was the whole picture. In addition Ford is cutting 300 jobs this June, which has some worried that Ford will leave before the 2016 announced point of departure.

2. Holden
Holden will be leaving Australia in 2017. Holden’s 2017 exit from its automotive assembly operations in Elizabeth put 13,000 jobs at risk in South Australia. (at http://www.theguardian.com/business/2014/jan/21/holden-exit-2017-sa-needs-330m).

3. Mitsubishi
Mitsubishi shuttered its assembly plant in 2008.

4. Toyota
The world’s largest car maker announced it would stop building cars in Australia by the end of 2017 and would operate in this country only as a sales and distribution company. One additional factor needs to be told, which will have bearing down the road. Namely “Toyota is Australia’s biggest vehicle exporter with around 70,000 of the 100,000-plus cars it builds here being sold in foreign markets” (at http://www.theaustralian.com.au/news/latest-news/toyota-to-make-major-announcement/story-fn3dxiwe-1226822810074).

So, by 2017 all carmakers will have bailed out of Australia. Why is this all a big deal?
Many will go directly for the job losses. ABC stated “The Australian Council of Trade Unions has warned the decision could cost as many as 50,000 jobs and wipe $21 billion from the economy as the impact rolls through the associated components sector” (at http://www.abc.net.au/news/2014-02-10/toyota-to-pull-out-of-australia-sources/5250114).

Is that all the truth? No! Listening to Labour leader Bill shorten is to hear a lot of misinformation and tweaked wordings. Labour had messed up a lot of issues. In my personal view, I personally think that Bill Shorten is not telling the whole truth because his lips are moving! Let’s not forget that the Liberals are not blameless either, the entire situation has covered both sides of the political aisle. Part of the disgrace can be read in the Business insider (at http://www.businessinsider.com.au/australias-car-industry-out-of-gas-after-billions-in-subsidies-that-were-always-going-to-lead-to-a-dead-end-2013-12) the quote “The car industry is estimated to have received a total of $12 billion in direct subsidies and protections over the past 20 years, including $1.8 billion to Holden in the 11 years to 2012.” is at the heart of this. So basically, 4 car makers have enjoyed an annual $600 million in subsidies a year. This is so off the wall it is not even funny! So our taxation goes to an industry who advertises a dozen times a day that they are so great? How can we take either the car industry, or the government in this regard serious? Let us not forget that Labour was part of this all as well. This also links back to the TPP (Trans Pacific Partnership). An interesting link we find is a Japanese site that had the following to say (at http://www.jama-english.jp/publications/tpp_pr_mar2013.pdf) “Japan’s auto market is completely open to other countries’ products. No restrictive customs or other regulations apply to imported vehicles.”

What about the exported vehicle side of all this? If we see it in that light, we see that the TPP is opening up borders as it should, so, that from now on Japan (Toyota and Mitsubishi) as well as USA (Ford and Holden) have a dire reason to return to their home flock. The TPP is giving options to get these brands all home build. Whatever assurances we see now on support and spare parts will soon be removed too (like in the month as they leave). Yes, there will be a few ‘exclusive’ distributors, but as the TPP comes to full power, the entire online experience will not just hold books, movies and video games. they will likely include car parts soon enough. If you doubt this all (which would be fair), then consider the following article (at http://www.theaustralian.com.au/opinion/columnists/lies-damn-lies-and-car-subsidy-statistics/story-fnbkvnk7-1226824091831#), where writer Judith Sloan brings a case that Australia has subsidised almost $1900 per vehicle produced. If we take that and we add the initial quote I mentioned “Toyota is Australia’s biggest vehicle exporter with around 70,000 of the 100,000-plus cars it builds here being sold in foreign markets” leaves me with the question whether we have been sponsoring that part too.

Is this just the story? No! I think that there is more at play. Even though several sources are not making any mention of it, Ford and General Motors (Holden) are American companies and i think it is not just about removing plants, I personally think that members of the US government have had talks with all the big boys of industry. The American situation cannot continue. If America is to survive (which is slowly becoming less and less likely), they need taxable incomes. To get this done they will have to get the industry back. This will soon become an era of in-sourcing. This is not a new or a novel thought. It had been on the mind of many in 2012 and several articles had been written in 2013 that in-sourcing would grow big in USA. One of the people outspoken in that area had been Charles Fishman. Even though no one took him that seriously, the man appeared to have been right on the money. I personally think that it was the dumb spending sprees by both Japanese and American governments that forced the in-sourcing hand. This is also part of the pressure we saw in December as President Barack Obama spoke out for a quick closure of the TPP (it still think that the pharmaceutical patents are the largest part, but that I will cover at a later date).

Is it all a bad idea? No!

It is for us, but can you blame these two nations for thinking of themselves? It will however be important for us to find another solution. I already mentioned this on December 11th when I wrote about ‘The Holden circus’. If Toyota is leaving Australia too, then my thoughts on this are not just validated to some extent, they become a lot more important to follow up on. A nation of 23 million needs its own car industry. I do believe that it should not be subsidised, the designers just need to become really clever and we the people of Australia will need to support our own industry. If the Japanese and the Americans are all about nationalism (as we have seen on many occasion), then why not the Australians? If Japan and America walk away from a 23 million customer base, why should we keep any level of loyalty towards them?

We must all realise that we need to adjust our focus, we must change our way of working and thinking. We need to walk away from subsidies and sponsoring. We must move to an age where we design in a more clever way, we must bring to market in a brighter way and we must adhere to a different customer collective. The 4 brand approach to 12 models a year is just not sustainable. If these makers claim so, ten let them refund the subsidies!

When the last car is built in Australia, the eager beaver that launches their brand in Australia will start with the audience of a lifetime!

 

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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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September 25, 2013 · 16:30

Scolding Labour’s Energy call

In the UK Ed Milliband is at it again. Of course, as Labour is getting closer to the elections, more interesting offers will be made to the electorate in a hope to get the votes up by a lot. As Mr Milliband is not polling to strong, more is needed.

Sky News reported on the notion that Ed Milliband has voiced options to freeze energy prizes, should Labour make it as the new tenant, getting the keys to that famous door on Downing Street (I think it was number 10).

Yes, freezing prices. It is an option to offer, but as Sky news showed in more than one way, it is not a very realistic one. I reckon that all parties need to realise that the next 3 terms will be about cutting the deficit. If the economy is to have ANY kind of a chance to get stronger and to get the UK back on some level of forward momentum, then the deficit and the debt need to go. Not realising that this is to be the number one priority is the party that has self, not the nation in mind.

The Dutch are dealing with this in a bad way. They have to cut 6 billion, or face a billion in fines. The survival of ALL the European players is to cut outstanding debts. It is a lesson the USA is currently not willing to face and it is about to get a lot harder for them.

Labour has more issues, but about that more soon. If we focus (not just UK) on these options, then we have options to strengthening all our economies. When we consider the option to unite the labour surplus and shortage of Australia, Canada, New Zealand and UK then we might cancel out a few shortages. If the world is a global workforce then the Commonwealth has one of the most global covering work force on the planet. Why is this not more strongly investigated? if we can get work flowing, then we get revenue moving and the reduction on welfare could be the start of it all. If we believe the news then there are many young workers looking for a job. Why not enable that workforce to work in any of these nations in certain areas? Even, if it is only for 1-2 years. That means hundreds of thousands could end up having an income. And the nice part is except for Quebec they all speak English (in Quebec they speak an additional language, so you could end up learning a second language there).

Anyway, this is not about language. Or is it?

The language of Labour has been off in several nations. In the UK the language is stretched for the votes, yet that could change sooner rather than later. In Australia Labour lost on message and on a public getting sick to watch the labour bickering. First there was Kevin Rudd, then Julia Gillard, then Kevin Rudd again and now after the Labour defeat the new ringleaders are in a rope pulling match between Anthony Albanese and Bill Shorten. Watching the ‘who gets to be in charge fight’ is immensely less entertaining to the labour supporters, if nothing (I mean way too little) is getting accomplished.

Ed Milliband has a different power struggle. His is about energy and the non-reality that these prices can get frozen. The margins are not that great when investments and infra structures are considered. If we believe the Guardian, then the energy moguls are in the market for cold blooded profiteering, which came from an article they published in April 13th 2013. Is this about profit? Who pays for the investments? We all are so nice about carbon emissions, getting green energy and such, but how does that get paid for?

Let us not forget that these are Commercial energy providers and they live on that pesky little thing called profit. British Energy is part of EDF, a combination that pays for almost 20,000 people. So if the income in Pounds is set to an average of 26,500, then they need to make a profit of over half a billion to just pay the average income (and this is only one of the six providers). Where will all that money come from?

So, apart from the workforce there are the plants, which need gas, oil, Uranium or other materials to create the energy. Not really a high yielding profit margin. I know about those ‘cheaper’ options, but for now a water powered fusion reactor remains a non-reality.

So as Ed Milliband makes this vow to freeze prices and as we know everything gets more expensive and these workers want a raise at some point. How can this promise be met? I do apologise for playing the realistic focussed pragmatist. It is just not a reality to see that happen. Not without adding to the debt by large steps, which in the end will be the UK downfall, missing whatever small curve of industry they could get.

So I remain, to be honest, as a conservative in a mindset that the UK alone might not hack it (not because they do not want to), but because the negative waves are too strong. Yet, the UK does not stand alone, we are all together the commonwealth. I prefer the old name, we ARE the British Empire. If Australia has such shortages in engineering (Western Australia), and healthcare in the UK is falling short, can we not slam our hands together? There is also Canada. With these three, we cover the entire global timeline. So many companies promise 24:7 support and then outsource it to India (also a Commonwealth nation), which gave many all kinds of language issues at times (not all the time mind you).

If labour needs a strong message, then why not focus on solutions, especially those not in the box. That part is shown with the NHS that does not fit into any box (apart from a coffin it might soon end up in, if nothing gets done right quick).

We should not rephrase messages, we should not change messages and we all need to look into new messages. Not doing so is a disservice to all constituents. The US to some extent still goes for the message “In god we trust all others pay cash“, Let our message not be some political clarion call, but a message that reverberated strongly throughout India, driving it to independence and turning it into a world power in less than 65 years. Not the worst example to follow! We all need to embrace both Mahatma Ghandi’s and Jawaharlal Nehru’s call for Global Cooperation. As they were both honourable members of the Inner Temple, we could see their view as one that had British foundations (that’s me thinking wishfully) and remains one that is worthy of pursuing.

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June 25, 2013 · 14:49

Repeating lack of retirement insight

We have seen many plays in the past and present, where some are so short sighted on getting their own margins set, that they seem to be in short supply of common sense. Where is this coming from?

I remember issues evolving in 1997 that politicians did not heed the words of people in the know when it comes to the issues of retirement. It was stated within the corridors of those who work there that the retirement funds were not getting enough money to build the buffers needed for that generation to enter retirement. Those words were ignored by those who could do something about that.

It was not until the Dutch Central Bureau of Statistics warned of the upcoming dangers of shortages in retirement funds a year later. (Source: http://www.cbs.nl/nl-NL/menu/themas/arbeid-sociale-zekerheid/publicaties/artikelen/archief/1998/1998-0129-wm1.htm ) This specific article warns the reader that the amount of people going into retirement up to 2015 will drastically increase as this will be the time frame where the baby boomers will go into retirement. Other documents gave the same warning. There was even additional warning that the group that follows was a lot smaller, as such the then current non-retiring population would not be growing the retirement funds to the degree it needs to grow. The consequence would be that the funds would grow dry really fast.

In addition, this was all before the crashes of 2004, so the reality was even grimmer then most thought it to be. That reality became truth as the retirement funds started to pay less in 2011. Whatever the reason that got voiced by those involved, in the end it was about an increasing lack of retirement buffers.  Now, today (OK, yesterday), advertisements by groups like the FNV (Dutch Union of workers) is warning people about the dangers to retirements. Why?

Political parties are now in the mindset to lower retirement payments by people. They are hoping that fewer costs mean more income into the streets. Also, as retirement payments are not taxable, lowering the tax deductibility will result in more taxation entering the coffers of government. So, there is now a clear impression that certain people in government are really willing to betray those who need retirement later on and base that risk on the ‘I need to look good now’ option.

Am I exaggerating? Is it about their view, their look? That is a fair question, yet messing around with long term pension building, not just the basic fear that people might end up with no more than 55% of their retirement funds is a dangerous act. This is not even taking into consideration dangers of additional future bank and investment failings where the buffers are currently still way too small and too much danger is placed upon funds that needs to feed a generation is just short sighted and completely unwarranted and therefor unacceptable.

What is the opposite side? Well, if we pay a little too much now, then we do get into a field where pensions will be a true safety net, especially in ages where all costs keep on rising and rising. The AOW (Government paid pensions) will remain a true safety net and could be a future foundation of safety. All that should not now or ever be endangered by unproven and assumed options for revitalising the economy. This looks like an upcoming excuse where the statistics of a better economy in 2014 (a claim that is nowhere near any level of certainty) should not be fed with long term securities. I personally see that any politician signing of on this one is to be held liable. There is the crux; they will not care as it is all about the now! Can we allow politicians to remain in office as they overspend for such a long time, not being able to balance their accounts and now are willing to endanger the next generation?

This is not just about the Dutch system. We should investigate these issues as they are likely to emerge in the UK, Canada, Australia, France, Italy and other nations. These nations are all in a state of deficit and as such, politicians in those nations would also seek a way to look good. Playing poker with the retirement funds of a next generation is an unacceptable gamble which should publicly be stated as null and void.

It is very tempting for the young, restless and party generation to not care about those issues now, but those who are not in a field where they are assured of long above average paying employment will soon thereafter learn the hard way that they are looking towards working another 15 years just to make the bare minimum.

If a politician has one clear responsibility, then it is not about getting by now, but to create safety, stability and security for the future. We are used to the short-sightedness of ‘Excel managers’ managing the needs to their next commission with a lack of long term vision, we should not allow politicians to do the same to the future of so many.

 

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June 12, 2013 · 16:05

Has the case of UKIP been made stronger?

It seems that the EU is starting to hand out slightly less restricting measures. Commissioner Olli Rehn is removing for a short time the 3% deficit limit. This is a slippery slope to say the least. Yes, it is correct that the economy is a fact that needs to be fought. Yet all (including the UK) are spending money that they do not have. UKIP is riding on the waves of these fears, where we the taxpayers will end up footing that bill no matter what. And in the European picture the ‘we’ is simply any citizen paying tax. Governments writing checks, for which they have no money. However the difference of that small point that they can no longer cut is still amounting to billions. In the UK with a vastly over the 1 trillion pound deficit such sliding numbers will really add up. Like me, Nigel Farage saw this coming from a mile away and now he is ready to play his move to start walking towards a landslide victory.

If these driving reasons are not dealt with then both Labour and Conservatives who are currently nowhere near changing the economy are heading to a legendary defeat. There is however a comical side to this. (One should always find reason to smile) It would be the first time in history that the opposition could get crowded by both Labour and Conservatives, with day one likely becoming quite the show. How would that fall in the House of Lords? In that case Black Rod (the Usher) will have a field day! A role currently assigned to Mr David Leakey, former Lieutenant General in command of European Union Military Staff. He was awarded ‘Companion of the order of St. Michael and St. George’. Take it from me that when the members of Club Carlton and the Reform Club are on the same side of the isle, the Usher might need a little back-up to break up slight differences of opinion and he better bring a bigger Dragon then the one St. George slew to aid him.

Yet, the shortage is the issue. How to stem the tides? It is clear that spending more and more is not making it happen. I personally think that it is time to join hands together (not singing Kumbaja). As Commonwealth nations we have a duty to stand together. We have always seen the US as a brother, yet when it comes to accountability, their actions have a massive bearing on our situations, yet they just shun accountability, they have remained absent in stemming the tide of the economical Tsunami, they themselves are creating. My suggestion is that we the United Kingdom, Canada, Australia and New Zealand start uniting economic solutions together. Being parked in London, Sydney or Melbourne is no longer an option. All three have to deal with shortages on one hand and unemployment rates on the other. What if we seriously start to change that? What if we push for a preferred partner in solutions? I myself experienced last week the answer from Canada, that they (one consultancy firm), when it comes to foreign workers limit themselves to US citizens. Perhaps our English is not good enough? There might have been a very valid reason in this, yet I cannot stop to wonder whether we are ignoring possible options to make the Commonwealth economically great again.

We are under such pressures to adhere to ‘corporate’ standards, and the bulk of all those companies are American. This is not about pointing fingers, but to restart an economy. If we look at the gaming industry nowadays, then that war, which was a former war of innovation, which is now diminished to a war between Microsoft who is about to hurt low income gamers and Sony, who is true to the gamers. The interesting side is that they for the most come with the same titles. There is still Nintendo, yet they seem to be lagging way behind. This is a multi-billion dollar industry and the shares are almost 40-40-20 with Nintendo in the 20% group. What is stopping us to take the Google OUYA Android Gaming Console into that market and start growing a market that is now, but has massive potential. Let’s face it, getting 10% of that market is still serious money and the economic downturn to people will remain at least another 3-4 years. So with a play to a cheaper solution is one they would love. It also forces the other three to become innovative and competitive again.  Smaller playable games at less than £ 5 makes it possible for starting developers to make many millions. Consider that families can afford 4-5 games instead of 1 Microsoft game with a £5 surcharge. It does not end there.

Europe is outsourcing customer care centres, technical care centres and we cannot find a way to get 100,000 a job? We need to rethink corporate thinking that is smaller based, makes money and pays taxation. That makes those places 3 times a winner for all parties involved. It does not matter who gets to be in office, in the end we need to fight to make sure that this office survives!

And as we go back to that multi-billion dollar gaming industry, when these people get a pre-owned game surcharge where will that be taxed? It is time to put a stand and make these chargeable items taxed in the gamer’s nation, not in a virtual server location where no taxation is due. When these companies move into the nations of the world, demand rights, protection and support, yet walk away from taxation that is due as they receive all those rights, then we should look at the abundance of non-accountability and make it an accounting matter.

We need to start moving. It is nice and essential to fight over the GCSE A-levels, but without an economy they have no future, and we must fight for both!

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April 13, 2013 · 14:47

Cold War Two?

When we look at the news and other media, then we see immigration issues on many levels and in many nations. There is no denying that every nation has its own issues with immigration.

Here in Australia there has been an uneasy issue with refugees for a long time. Many claim that options could be found, especially when processing off-shore, yet the initial issue was clear that this could never be done as it breached humanitarian law. Yet, only one year later PM Julia Gillard seems to look at additional options to press this solution once more.

The issue that brings this to the top of the list is the issue that the NOS reported in the case of the Russian Dolmatov, which was also reported by Fox News and the BBC. The BBC was even so clever to put the word suicide within quotes. Perhaps they have the same concerns I have. Was this truly just a suicide, or are these levels of miscommunications set to such an unusual level that more is going on? Perhaps some of the involved parties were doing Putin a personal favour? Before we consider this to be another thought of conspiracy theory, let us take a look at the facts involved.

First
The Dutch IND (Immigration and Naturalisation services) conveniently concluded that Dolmatov’s life was not in danger should he return to Russia. Perhaps they want to rethink their status? If a band like Pussy Riot, likely nothing more than a nuisance can get placed in a small cell, then someone with ACTUAL knowledge of Russian missile systems could be regarded as a more serious issue to Russia, only fuelling the evidence that wrong calls were made.

Additional evidence was shown by the Dutch Newspaper NRC where information was brought that there was information that the FSB tried to recruit Dolmatov. Whether that part can be proven, it does clearly indicate that Dolmatov’s return to Russia would have much further reaching consequences. There is no doubt in my mind that these facts should have been in the IND report and as such this entire immigration process would have taken another turn from day 1. If these facts were intentionally ignored or omitted, then the question becomes, were these facts tampered with, and by whom for what reason?

In the rebuttal, if those facts by NRC were incorrect then even so, the fact that he was a visible activist against the Putin administration was a known fact. The fact that the Russian police had been actively engaging anti-Putin protests is well known. Several newspapers had reported on some anti-Putin activists to be jailed for terms in excess of four years.

We see support to the status as it SHOULD have been in: “Handbook on Procedures and Criteria for Determining Refugee Status under the 1951 Convention and the 1967 Protocol relating to the Status of Refugees”

For this we look at the General principles (31).

“The inclusion clauses define the criteria that a person must satisfy in order to be a refugee. They form the positive basis upon which the determination of refugee status is made.”

That document also states that: “There is no universally accepted definition of “persecution”, and various attempts to formulate such a definition have met with little success. From Article 33 of the 1951 Convention “it may be inferred that a threat to life or freedom on account of race, religion, nationality, political opinion or membership of a particular social group is always persecution“.

So we seem to have a proven point. The Netherlands did sign that charter and it even specifically states that the Netherlands extended the application to Aruba. With additional evidence from Dutch press sources (the NRC is often regarded as one of the highest quality sources in Dutch Journalism), I can come to no other conclusion that this was NOT just an administrative (data entry) error.

Second
I was stated in the Dutch NOS newscast that the immigration police did not mention the right that he was allowed to have his own lawyer. Such a basic right omitted? Can we deduce that there is a structural problem?

This can be supported by a report in a case that was judged in November 2006 where was stated “in een geval waarin ervan wordt uitgegaan dat het aan verweerder – de IND of de politie – te wijten is dat geen advocaat bij het gehoor aanwezig was, sprake is van schending van het recht op rechtsbijstand. De rechtbank verwijst daartoe naar artikel 5.2, vijfde lid, Vreemdelingenbesluit 2000 en artikel 18 van de Grondwet.”

[Translation]: in a case where the defendant (the IND or police), that no legal representation was present at the interview is a transgression on the right of legal aid. The bench refers to article 5.2 paragraph 5 of the refugee act 2000 and article 18 of the constitution.

There is additional evidence to state that the IND has had its failings longer than that. Can we therefor reject the assumption that this is ‘just’ miscommunication as was reported? This gives a view by both Gertjan Bos (Chief inspector of Security and Justice) and Fred Teeven (Secretary of Security and Justice) as insincere and an utter fail. The words by Gertjan Bos where he was unable to answer whether better dealing with the situation would had a different result cannot be answered as something too funny to consider to be a serious response.

The first seems to clearly prove that Dolmatov did make pass the requirements of Refugee. As such, as the detainment of Dolmatov was unjust, it would already be evidence that reason of a possible ‘suicide’ is no longer an issue.

Third
The NOS reported that Dolmatov had already tried a first attempt to take his own life, after which no physician was assigned to his case. That in itself is a failing too. This does have a two sided issue. On the one hand there was a suicide risk and no proper care was taken, which is an even worse ‘foo foo’ point for the government. Yet on the other side, the responses that there was pressure and intimidation in regards to Dolmatov taking his life is also an issue, as there is no mention that this pressure was there in the first attempt (or at least so it seems to be the case).

So, are the Dutch dealing with a failed IND system, or was this all a very convenient solution for the Russians. The fact that the Dutch government is very vocal in accepting blame after a three month investigating is not strange. So that is not a factor. What is a factor is that Secretary Teeven did not want an investigation into the dealings of the IND after the murder of evicted Serbian Kosanovic only a month before the Dolmatov case hit.

The NOS did report that Secretary Teeven will adopt the findings in regards to the Dolmatov report. Yet, part of the newscast is a worry, where this has been set as a failing with inaccurate computers and miscommunication. Blatant right violations seem to be at the centre of this all and as such we could deduce that the IND has a strong infrastructure failure where the rights of refugees are set. I read more than one article where it is stated that the IND prefers to do a first interview WITHOUT legal representation, as to ascertain whether a person is a true refugee. This is fair enough, yet, in a legal state, such a solution should be regarded as inferior. This I voice as we know that many western nations have a high amount of freedom and refugees come from places where these rights are missing. This means that refugees who are trying to escape a place of intimidations (often worse) as placed in a setting where they are highly intimidated. They are in their own job interview where failing the interview would mean certain death. Would you not be intimidated?

Going back to the Dolmatov case. There was an interesting mention made by the Amsterdam Herald on the 4th of April. There it stated the following: “Ludmilla Doronina, Dolmatov’s mother, said that as the note went on the style became less recognisably her son’s. Towards the end it contains an elementary spelling mistake which she insists he would never have made. ‘On the first page every comma is in the right place,’ she told Dutch state broadcaster NOS. ‘I think he wanted to give a sign that this had been written under the influence of something or someone.’”

I mention this as I found it. I am not sure how reliable this is, yet as the Amsterdam Herald seems to be the only source, some question marks should be added. I do wonder if any of the Journo’s took a serious look at those insinuations. It does not matter whether the mother is an emotional source (some papers live on emotions). It is a fact that could support or reject certain issues currently under discussion.

In the end we are left with an interesting question. If refugee issues are mounting up, and in this case where a nation as evolved, liberal and free as the Netherlands has a failing of this magnitude. Should we worry about certain issues that are now visibly in play all over the commonwealth?

Is this the second cold war? A war that decides who gets to live in freedom? For if freedom is a right subjected to conditions then what defines freedom and what is the future of any refugee?

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