Tag Archives: Blackrock

The G30 court

There is an issue, an issue that we are all missing, more for the reason that after January 17th the media is steering clear of this with all the might and options they had. I reckon that they will spin this in a setting that it is ‘uninteresting‘, but when was it ever uninteresting to look at a group of 30 that has the alleged advantage of getting their fingers into a pool that has 0% risk worth billions?

The more important part is that there was one mention, or at least only one that was found, on July 7th 2017 and November 3rd 2017, both come from Reuters, the media has become that much of a bean flicking, pole pulling grape flocked bunch of pussies as I personally see it. Yet, the fact is that even as the impact is speculated, the setting given is that a group of 30 had an optional exclusive insight in the 3 trillion dollar ECB spending. Consider that each of these 30 got a 1% portfolio, where 75% of it was set at 0% whilst the remaining 25% might have op to 3% risk, in this setting the underwritten $31 billion for each member would set a speculated sanctified security of a multiple factors of $31 billion each. An elite group of 30 all having the top of the financial services cream at zero risk with the optional massive returns none of us ever had insight to. Now I can see that a mere 0.01% of that 1% would set me up for life, and that is merely the one source, the ‘in-crowd’, now would that be the incestuous insider towards untapped ‘considerations of investment‘ and they would all be bringing their own portfolios and economic insight on how to maximise that? Adding the man (read: Mario Draghi) spending Europe’s $3.1 trillion would happily be allowed into their midst, it is merely the setting that this rigs the game towards 30 participants whilst giving a weighted disadvantage to all other bankers is still an issue not covered by anyone.

So as we saw last November ‘ECB says not its call to publish content of Draghi’s meetings with financiers‘ (at https://www.reuters.com/article/us-ecb-banks-ethics/ecb-says-not-its-call-to-publish-content-of-draghis-meetings-with-financiers-idUSKBN1D327U) whilst we also see “At issue is Draghi’s membership of the so-called Group of 30, where policymakers meet bankers, fund managers and academics behind closed doors to discuss economic issues. He sits alongside former and current central bankers, such as Bank of England Governor Mark Carney and the Bank of Japan’s Haruhiko Kuroda, as well as Nobel laureate Paul Krugman

Yet even as we see “Ombudsman Emily O’Reilly had asked whether the ECB would “consider proactively informing the public of the content of these meetings” in response to “a complaint by activist group Corporate Europe Observatory, which said in January it was concerned about proximity at the G30 of ECB officials and bankers they are meant to supervise“, I cannot help but wonder what both Emily O’Reilly and Corporate Europe Observatory left unmentioned. It was also mentioned by the Dutch Volkskrant where the Corporate Europe Observatory (CEO) member Olivier Hoedeman added comment.

I tried to find more, so even as we have found Mario Draghi, Mark Carney, Haruhiko Kuroda and Paul Krugman as confirmed names (from the media), I initially believed that Groupe Credit Agricole (most likely Dominique Lefebvre) would be a member, I am also speculating that Peter Smith (as director of N M Rothschild & Sons) might have been a member of that group. There are a few other players, but it becomes increasingly less certain even from a speculated point of view. What does matter is that this is not merely some ‘secretive’ babble group. Even as we see last July “In a letter to Draghi that was published on Friday, European Ombudsman Emily O’Reilly said the meetings of the Group of Thirty, where central bankers, economists and financiers talk behind closed doors, are “not transparent” and questioned the ECB president’s membership of the club” as well as “Draghi has until September to reply to the letter in writing“, in that, the media and so called journalism stayed clear of this for the largest extent and the ECB did respond in October 2017 in the attached part. In my view, it all sounds nice but a select group of 30 with a pool of a number in excess of 6 trillion, where 30 people get first dibs on a risk bonus that goes beyond the comprehension of many and the media buries it on page 62 is a much larger issue, especially when the response on page 9 gives us “Moreover, Article 130 of the Treaty on the Functioning of the European Union safeguards the independence of the ECB and of the members of its decision-making bodies” whilst we all know that a mere fraction of $6 trillion has been a case for shifted morals and readjusted (read: weighted morals) in many regards, there are countless hours on C-SPAN that saw those liquid morals and settings in regards to the 2008 events, so the idea of ’30’ members ending up with golden parachute the size of Australia is not that much of a leap, speculated or not. So when we look back to the 2008 events and we see in January 2017, nine years later “The credit rating agency Moody’s has agreed to pay nearly $864m to settle with US federal and state authorities over its ratings of risky mortgage securities in the run-up to the 2008 financial crisis, the department of justice said on Friday“, whilst the damage from the 2008 crash was set to top $22 trillion, we should ask the US Justice department on where the remaining 21.991 trillion is and who was supposed to pay for that. So in all this the fact that the media is steering clear from the G30 and asking, or actually not asking anything past the Reuters articles seen should give alarm bells on many sides, not merely the media.

The EU Parliament magazine (at https://www.theparliamentmagazine.eu/articles/news/mario-draghi-under-fire-g30-membership), also gives us “CEO’s monetary and financial policy researcher Kenneth Haar said, “The Ombudsman’s decision is timely and very positive. Draghi’s involvement with the G30 was ill-advised from the start. Since 2016, when the ECB’s mandate for banking supervision was extended, the close ties between the president and the bankers’ group has become absolutely unacceptable“, or is that gave, because it is past tense and so far the media has remained silent since January 17. It seems to me (extremely speculative) that these 30 members are either connected or involved with the shareholders, stakeholders or advertisers in the media, because the media seems to be at all times protective of these three groups, whilst merely informing on those three groups in a filtered way, or to the smallest degree unless it was already out there in the field. The fact that this group has such a global hold is an issue and I might have been a lot less speculated on this, but the lack of transparency as well as the fact that we see “Tyga Gives Kim Kardashian A Hilarious Spelling Lesson On Social Media” and other Kim Kardashian on a daily basis, whilst the media remains silent on the speculated distributors of no risk trillions is a weird setting, especially when those sources have their fingers in thousands of billions. So when we see the BBC with: ‘Is it time we all unfollowed Kim Kardashian?‘, we might wonder whether it is yea or nea, yet there is a speculated 99.9999% likelihood that the G30 members will not make the cut towards monitored inclusion on following, I am certain that the first one that acts on that is has a boss who is likely (again speculated) to get a quick phone call from a shareholder, stakeholder or large advertiser to wonder if they have any grasp on their staff members and whether they want to manage or become managed.

Do you think that this is a stretch?

From my personal point of view I would give to you Sony (2012) issues, in regards to the change to the Terms of Service. The media ignored it, even as it would impact a group of 30 million consumers. Most of those players merely just trivialised it via ‘there is a memo‘ on it. The rest did even less; some even ignored it all together. With Microsoft (2017/2018) we see even more (at https://www.computerworld.com/article/3257225/microsoft-windows/intel-releases-more-meltdownspectre-firmware-fixes-microsoft-feints-an-sp3-patch.html)

You’d have to be incredibly trusting — of both Microsoft and Intel — to manually install any Surface firmware patch at this point. Particularly when you realize that not one single Meltdown or Spectre-related exploit is in the wild. Not one“, the amount of visibility (apart from marketed Microsoft Central views) is close to null, a system with no more than 17 million users is marketed and advertised to the gills, so the media seems to steer clear, merely two examples in a field that is loaded with examples.

Back to the group

So as I gave the speculated view earlier on the ‘whom’, we can see the full list (at http://group30.org/members), these members are according to the website:

  • Jacob A. Frenkel, Chairman, JPMorgan Chase International
  • Tharman Shanmugaratnam, Deputy Prime Minister, Singapore
  • Guillermo Ortiz, Chairman, BTG Pactual Latin America ex-Brazil
  • Paul A. Volcker, Former Chairman, Federal Reserve System
  • Jean-Claude Trichet, Former President, European Central Bank
  • Leszek Balcerowicz, Former Governor, National Bank of Poland
  • Ben Bernanke, Former Chairman, Federal Reserve System
  • Mark Carney, Governor, Bank of England
  • Agustín Carstens, Former Governor, Banco de México
  • Jaime Caruana, Former Governor, Banco de Espana
  • Domingo Cavallo, Former Minister of Economy, Argentina
  • Mario Draghi, President, European Central Bank
  • William C. Dudley, President, Federal Reserve Bank of New York
  • Roger W. Ferguson, Jr., President and CEO, TIAA
  • Arminio Fraga, Founding Partner, Gavea Investimentos
  • Timothy Geithner, President, Warburg Pincus
  • Gerd Häusler, Chairman of the Supervisory Board, Bayerische Landesbank
  • Philipp Hildebrand, Vice Chairman, BlackRock
  • Gail Kelly, Global Board of Advisors, US Council on Foreign Relations
  • Mervyn King, Member, House of Lords
  • Paul Krugman, Distinguished Professor, Graduate Center, CUNY
  • Christian Noyer, Honorary Governor, Banque de France
  • Raghuram G. Rajan, Distinguished Service Professor of Finance
  • Maria Ramos, Chief Executive Officer, Barclays Africa Group
  • Kenneth Rogoff, Professor of Economics, Harvard University
  • Masaaki Shirakawa, Former Governor, Bank of Japan
  • Lawrence Summers, Charles W. Eliot University Professor at Harvard University
  • Tidjane Thiam, CEO, Credit Suisse
  • Adair Turner, Former Chairman, Financial Services Authority
  • Kevin Warsh, Lecturer, Stanford University Graduate School of Business
  • Axel A. Weber, Former President, Deutsche Bundesbank
  • Ernesto Zedillo, Former President of Mexico
  • Zhou Xiaochuan, Governor, People’s Bank of China

They also have senior members, which is interesting as they are younger than at least one of the current members, as well as the fact that most of the members in the current, senior and emeritus group have multiple titles.

  • Stanley Fischer, Former Governor of the Bank of Israel
  • Haruhiko Kuroda, Governor, Bank of Japan
  • Janet Yellen, Former Chair, Federal Reserve System

And the Emeritus members:

  • Abdlatif Al-Hamad, Former Minister of Finance and Planning, Kuwait
  • Geoffrey L. Bell, President, Geoffrey Bell and Associates
  • Gerald Corrigan, Managing Director, Goldman Sachs Group, Inc.
  • Guillermo de la Dehesa, Chairman, Aviva Grupo Corporativo
  • Jacques de Larosière, Former Director, IMF
  • Richard A. Debs, Former President, Morgan Stanley International
  • Martin Feldstein, Professor of Economics, Harvard University
  • Gerhard Fels, Former Member, UN Committee for Development Planning
  • Toyoo Gyohten, Former Chairman, Bank of Tokyo
  • John Heimann, Senior Advisor, Financial Stability Institute
  • Sylvia Ostry, Former Ambassador for Trade Negotiations, Canada
  • William R. Rhodes, President and CEO, William R. Rhodes Global Advisors
  • Ernest Stern, Former Managing Director; The World Bank
  • David Walker, Former Chairman, Barclays
  • Marina v N. Whitman, Professor; University of Michigan
  • Yutaka Yamaguchi, Former Deputy Governor, Bank of Japan

So this group of 30 is slightly larger and in the group each of these members would have the power and economic impact to tell any member of the Fortune500 what to do, or better stated and more important ‘what not to do!‘ It is in that instance that we see the first impact. A game that now looks as I personally see it rigged in several ways; so even as I was allegedly wrong about Dominique Lefebvre or a direct peer, we see Christian Noyer. So in my view, in a 2015 French article on the issue of “Who will succeed Christian Noyer as head of the Banque de France?“, we see “Mario Draghi, the president of the ECB, seems to have had the idea to see his right arm go. Benoît Coeuré would be an important ally for the Italian in the Council of the Governor“, yet in the light of the G30, it seems to me that such a discussion would have been set into a pre-emptive conclusion of who would needed to have been made king in that castle. When we see that in light of a previous article, namely ‘The Global Economic Switch‘ (at https://lawlordtobe.com/2018/03/06/the-global-economic-switch/), were well over 500 billion is to be invested and grown, in addition to the fact that the SAMA has oversight to well over 2 trillion dollars, how come that they do not have a seat at the table? In the same way that the Rothschild’s are not there, but they might be ‘represented‘ through Bernanke or Frenkel, whilst it is not impossible that Mario Draghi might be giving them the low-down to some degree, yet the Kingdom of Saudi Arabia with that much money on the ladle of expansion, that they are not part of it. In a world where that group is about (according to their own website) “The Group of Thirty, established in 1978, is a private, non-profit, international body composed of very senior representatives of the private and public sectors and academia. It aims to deepen understanding of international economic and financial issues, and to explore the international repercussions of decisions taken in the public and private sectors“, where the foundation of Saudi Arabia has been the power of OPEC and the power to instil the push to be a global player in many fields, in that sight in represented value that the repercussions of decisions are set at, to see the Bank of Israel yet not some link to SAMA (Saudi Arabian Monetary Authority) makes equally less sense in the line of thinking that the ‘about‘ section gives us, which makes me wonder what these members are about. they might be all about that, yet what else they are about, or what else they have a useful value in gives rise to my train of thought on where this train with less than 55 occupants is heading off to, and more so, in light of the power that these ‘30’ members have, the fact that the G30 is not the cover talk of many newspapers, especially the Financial Times is beyond me, because anyone coming to you with ‘No News’ or outdated news, or even worse that there is no real issue in play is clearly told what not to write.

It seems to me that not only is there more in play, the personal speculated view that I have in light of learning more and more about the G30 merely confirms my suspicions, as well as the insight that I am getting (a speculated one) where the media is steering clear from all this is a much larger issue. To what and in which direction is one I am not willing to go into, because I know that the ice is wafer thin at this point and skating on water is a realistic ‘no no’, yet the feeling that these members are getting a first view and optionally the option to dip their cups on plenty into a grape juice barrel of risk-less profit is one that I feel is very much in play. This G30 group is networking on an entirely new level, one that I have never seen before. This is not some kingmaker into presidency; this is a long term group where the optional billions will keep on flowing for decades to come. And this all in a setting of non-transparency, because this goes way beyond the 3 publications in 2016 and of course all those papers published before that. In the 2016 publication ‘Shadow Banking and Capital Markets: risks and opportunities‘, (at http://group30.org/images/uploads/publications/ShadowBankingCapitalMarkets_G30.pdf), we see in the conclusion on page 49: “Moreover, growing leverage across the global Economy can create important risks to macroeconomic stability even if the financial system itself is more resilient. And two developments are particularly concerning: the growth of emerging market foreign currency debt and the rapid growth of Chinese leverage accompanied by a proliferation of shadow banking activities are ominously reminiscent of precrisis developments in the advanced economies“, which is in view of the experts would be nothing new, yet resources available and the 36 exhibits and the recommendations would have been available to the G30 group much earlier than anyone else. In that light, we need to wonder not merely on the setting, in Exhibit 36 we see mortgage losses and the fact that there is the US, Canada and Europe, so in that light the fact that the fourth one is the Netherlands, is that not odd? In light of several settings, France, Germany, Italy and the UK, any of these four would have made perfect sense, so why the Netherlands? Exhibit 33 might have been a reason for this, yet in equal measure the absence of Scandinavia and Italy in this setting now adds to the questions. I think it is not merely choice and presentation, the absence of those players give rise to questions, perhaps even speculated questions and as there are none to be given, it makes me wonder what else is missing, what other data was filtered because in the light of data and presentation there is one golden rule I have always kept in the back of my mind.

The Analyst shows you which investment needs to be made, the presentation makes you look forward to the invoice.

So what invoice is the G30 group making you look forward to and where did it need to go? Two questions with optionally very different results, and in that setting, whilst you know the impact the European economy has had over the last 15 years, whilst we also know that Mario Draghi has been spending $3 trillion, in that setting the G30 does not make the news?

Who is getting fooled by all this and who is getting fooled by making sure that you do not get to notice this?

It is a much larger playing field that is from whatever point of view you have a field of inclusion, or a field of exclusion, yet in all this there are questions that are not asked at all, questions that even I am not asking because I decided to go into technology, engineering and law whilst giving a pass on the Economic subjects. Yet the Financial Media is not asking them either and that is an issue, especially in light of that ‘secretive‘ group set to a stage of networking inclusion, or is it networking through filtered exclusion?

I’ll let you decide on that.



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Knocking on the door of death

There is a time in anyone’s life when death comes knocking. For some it is in an early stage for others when the end of a long road has been reached and a few of the latter go that way after a rewarding life, being it material or spiritual. So when we see ‘The Greek government says the country has turned a corner, but that is not the experience of people on the ground‘ it is merely another step to an early grave for a lot of them. The Greek Debt is being disconnected, it is being misrepresented by government and media, and overall the people are only losing more and more at a steady pace. When we see the quote: “The worst is clearly behind us.” Panaghiota Mourtidou pondered the words with a gravity unusual for the jovial volunteer. Even now, several days after the Greek prime minister, Alexis Tsipras, saw fit to use the phrase, she still feels somewhat bewildered” (at https://www.theguardian.com/world/2017/jul/30/greek-debt-crisis-people-cant-see-any-light-at-the-end-of-any-tunnel), the people seem to realise that they are being played. In the end Tsipras delivered on being as shallow and as deceitful as all the administrations before him. When we see the mention of the  French-trained hairdresser who had paid into a pension fund for almost 45 years, we see the initial fallout “At first it was a fairly good pension at €1,750 a month,” she recalled. “Then it was cut to €1,430 a month and now its €960 a month“, it is a 46% drain on quality of life, it is merely slightly more than Australian welfare, it implies that people get to live of $5 a day for their goods and groceries, which is utterly inhumane and I think that Panaghiota Mourtidou and Alexis Tsipras are insane to give any voice to ‘the worst is behind us‘, there is a realisation that this is merely the end of the beginning. With a debt of €325 billion, and according to one source an interest that is set to roughly €600 per second, we know that this is before the last bailout, so it gets to be a little less positive soon enough. We know the Greece didn’t have any options, they all know that this would happen, yet the injustice that there has been no prosecution of the previous administrations must hurt the people a lot too. So when she voices the fact “Hopes of spending their later years in Crete have been dashed“, I feel for her, because at some point, that was my dream too and for a lot it was a decently realistic dream. In all this we see “raise the sort of money it needs to refinance its debt,” said Kyriakos Pierrakakis, director of research at DiaNeosis. “It will almost certainly need a new financial credit line, a bailout light, and that will come with new conditions.”“, as the risk grows the refinancing of debt is so hollow, as more goes into interest it all falls away and nothing is left. Now, we can agree that Greece or a larger than smaller extent did it to themselves, they did it in either ignorance or in spite of, the reason does not matter; the outcome would remain the same. As they had the option to get out of the Euro and default on their loans there might have been an optional new start-up, now we see that there has been almost no actual support and the Greek population will need to live with the consequences of ending empty handed, generations washed away without the optional memory, it might be the first time in history that the financial institutions have taken their goods, their savings and their memories, the harshest of conditions.

In all this, Kathmiri shows another side (at http://www.ekathimerini.com/220517/article/ekathimerini/business/prices-remain-particularly-high-in-greece), the quote “Eurostat data show that Greek consumers pay more than all other European Union citizens for their telephony and postal services, with price levels standing almost 40 percent above the EU average rates, and even higher than the rates in Switzerland“, the question becomes: ‘who is pushing this?’ When we see options from Vaya, TataDocomo and Amaysim in places as outlandish as Australia (a large island with at some places miles of stretches between each house), the option from the Greek government to open the option to other players so that some of the quality of life is not lost is one part, the other is to invite players like Google, so that the Greeks have some level of ‘free’ internet is not out of the bounds of thinking. The mandate for the Greek politicians becomes less waiting for the credit houses to throw them scraps; it becomes an issue to offer the Greeks some additional levels of options that floats the quality of life to the smallest degree. It is a simpler process than merely hoping for the economy to get better and to hide behind the falsehood of ‘the worst is clearly behind us‘, a statement we all know (especially the Greeks) is not true.

All this whilst Victoria Hislop produces an article a day earlier on ‘Patra represents the extremes of Greece – sublime and mundane‘, it is her view and she shows some of the remarkable places in Greece, in that she gives her views, with images of Saint Andrew, a breathtaking place. She voices how Patra is elemental in all this as a given need when one sees Greece. It is all valid, you see, the darkness of the debt is an internal one, driving tourists forward towards Greece is clearly another part. I fell in love with Crete when I originally saw ‘Who pays the ferryman‘, in the end I went to the places where it was filmed, and many other places on the island. I saw the relaxed Elounda, the bar where some of the episodes were filmed, but that was merely the beginning, you see, Crete had so much more, Spinalonga was the true treasure of historic events, the Venetian fortifications as well as the impact that the other visitors had to the place. Greece is more than the debt it has, but has been equally reduced to the debt. Yet in all this, what have the greed driven corporations pushed towards Greece in an air of support? Did we see Vodafail giving a sweet deal to the Greeks and create a long term loyalty plan? Ah, no, because they still have a net debt of £29 billion, which was up by 31%, whilst the executive officer Vittorio Colao lives of £6 million, amounting to £500K per month. OK, to be clear, I am not having a go at him, he might have been well worth every penny. It is just that I have been confronted with the Vodafail PR for a little too long and when the times are hard, they ‘suddenly’ retrench. This is a valid step for any corporation mind you, yet, if these players are so much about one EU, and using their influence trying to thwart Brexit whenever they can. Is that suddenly small minded local thinking not an interesting non-EU mindset? When we consider (at http://www.politico.eu/article/digital-single-market-mid-term-report-card-tktkt-percent/) we see the fallout in the corporate sphere. The quote “Thirty years after the launch of the EU single market, 20 years after its first work on launching a telecoms single market and 10 years after then-Commissioner Viviane Reding launched the digital single market idea, the Juncker Commission has only got one of its 35 digital proposals signed off so far“, it is clear evidence of the utter uselessness of a single market, it is evidence on the need and greed of large corporations, the maximisation of profit. In all this, I have stated years ago that pushing some of the services to Greece could have had a positive impact, an actual sweet deal for some of the large players whilst they moved away from expensive western European places, yet none of that was done, because PR was all about the visibility in Dynamic London. So how EU is that? I am all in favour of growing London businesses, yet when you consider £3500 per square meter on average for a company spot, and Greece can get you a large building at 1000x in a one time off option (not an annual fee), how expensive is London (or Amsterdam for that matter). In all this, pushing several call-centres to Greece and Crete could have had an impressive impact on the Greek economy, yet the large players never considered that (or optionally intentionally steered away from that option), it was not sexy enough. So after 30 years we see “Presenting its half-time report card Wednesday, the Juncker Commission acknowledged things need to pick up speed. “The work is far from complete,” said the Commission’s Vice President for Digital Andrus Ansip. Estonia will put digital issues at the top of the agenda when it takes over the EU presidency in July; as its longest-serving prime minister, Ansip is well-placed to leverage that push“, which does not mean that any of it will get done, pushing the weight to the next person, that is the mere realisation that the EU with their so called one market, their 20 gravy trains and a cost of existence that has surpassed the Greek debt in tenfold is showing us that not only is the EU a redundant thing, the fact that Santa Mario ‘spends way too much‘ Draghi is even more evidence as his €60 billion a month is leaving Greece out of any easing options, an equation that should warrant a lot more questions, yet the Financial times (at https://www.ft.com/content/82c95514-707d-11e7-93ff-99f383b09ff9), is showing how apparently, the recovery is slow, but real. That might be to some degree correct, yet when we see “Debt sustainability in both Italy and Portugal is very sensitive to economic shocks“, which is true, especially with the massive debts Italy has, In that that their interest due has surpassed €2500 a second, Greece is not a consideration anywhere, Greece no longer counts. The one quote that we see and require to consider is “Five years later it is clear the head of the European Central Bank was true to his word, restoring financial confidence and ending a crisis of sovereign debt through a series of extraordinary measures to support the continent’s governments and banks“, the first is was he actually true to his word? Is there actual financial confidence or is there an environment of governmental abuse and pushing the risks of the games some play and dangers they bring onto the population of these nations as debts keep on rising, as governments have lost all abilities to keep a proper budget? When we see the local news in the Netherlands with ‘De Nederlandse bank‘, the additional mentioning on how the Brits are all getting into trouble because of Brexit, the Flemish where we see over valuated housing issues rising, in addition, the large banks in Belgium have invested well over €40 billion in fossil fuels, this is an issue and an important one when we consider “Naast de schade aan klimaat, mens en milieu, erkennen steeds meer experten ook het financiële risico van investeringen in fossiele energie. Zo wees BlackRock, ‘s werelds grootste vermogensbeheerder, op het gevaar van ‘stranded assets’: fossiele energiebronnen of -centrales die in de komende jaren meer zullen kosten dan ze opbrengen“, which paraphrased translates as “beside the climatological damage, an increasing amount of experts are pointing at the financial risks of these stranded assets, Blackrock being one of the voices state that fossil energy sources will cost more than they will bring in revenue wise“, so not only are we watching €40 billion in bad investment, the dangers are that there are long term considerations in costs as well. Now in the end, this might have been the least of the dangers for the Belgium government, yet in that light it means that certain matters can no longer be maintained in the overall image. This is a very disturbing issue. All this links back to the options for Greece, when we see European governments make bad and expensive decisions, in addition as the governments in question seem to be creative book keepers, yet when we look at the risks given to their populations, the long term damage is one that seems to be spiralling out of control and none of these governments are making their politicians criminally accountable for any of their actions, how is there any chance of a surplus within the next two generations? That is a reality that should have been enacted for the longest of times, so as we see the impact of Greece as (partially due to their own acts) we see large corporations move out, more and more exploiting individuals move in for the kill and we see Alexis Tsipras and Panaghiota Mourtidou state that ‘the worst is over‘, how delusional is that?

In Belgium the newspaper ‘Het Laatste Nieuws‘ (at http://www.hln.be/hln/nl/957/Binnenland/article/detail/3148452/2017/05/03/Belgische-staat-verkoopt-deel-aandelen-BNP-Paribas-Geen-onverstandige-zet.dhtml), gives us two parts. The first is “Belgische staat verkoopt deel aandelen BNP Paribas: “Geen onverstandige zet”“, The Belgium government is selling a stake (25% reduction) into the French group BNP Paribas. This international banking group employs over 180,000 employees in a little over 75 nations; they have assets close to €2 trillion and had a profit last year of €7 billion, so they are no small grocery on the corner of a village. This happened two days after “BNP Paribas Fortis zet parlementslid zonder uitleg op straat“, meaning that they ended the accounts with a member of parliament, this Member of Parliament has 60 days to push his accounts into another bank. Now the reasons are not linked as a given, yet when we see ‘what is the most upsetting is that neither the phone connections nor the office of the bank gives me any reason as to why this is done‘ (at https://www.demorgen.be/binnenland/bnp-paribas-fortis-zet-parlementslid-zonder-uitleg-op-straat-bc2612a0/). When we consider the other (translated quote “often it is about strict rules regarding ethics and battling fraud, e-Finance institutions are mandatory required to collect customer information and to report this. It depends on the type of customer and for politicians there are specific rules, they need to be updated more frequently“, now we can argue and speculate, yet the question becomes if there is a problem reporting within the bank, that tends to be not such a good thing and if this politician is not the wealthiest one, the juice might not be worth the squeeze, so in this age, as banks become more and more stringent into ‘adhering‘ to certain rules, it seems to me that this tends to be a first sign that the bank has certain stress issues it really prefers not to update too often. It is merely speculation from my side, yet when we consider that for the longest time, elected officials as customers were a positive impact on the PR of a bank, seeing the member of a Green party (usually the most innocent of political types) pushed away, I wonder what on earth is going on.

How these two relate?

That is not the actual question, but it is an important factor. The news (at https://www.febelfin.be/en/belgian-banks-are-doing-fine-first-sight-will-face-a-problem-profitability-near-future), gives rise to a KPMG report, which gives us “But the Belgian banks will have to take corrective measures to maintain this profitability while keeping solvability and liquidity at acceptable levels“, which in light of more frequent reporting might be an issue for these banks, as we see ‘higher costs due to increased regulation and tax burden‘, we need to realise that the banks are playing on ponds that are a lot more shallow than the people realise, even if the water looks clear and reflective as a mirror, it equally shows that beneath the surface there are optional hidden hurdles. I am not stating more options to get beached, more that the requirement to navigate a lot more to get into a forward placement; these two elements are not the same, but the return on investment is becoming a (much) larger effort. Now, as Belgium is economically in a better place than Greece is, it gives rise to the optional irresponsible dangers that Greece is willing to go to with the next selling of Bonds and with the dangers of added percentages on risk, the impediment of forward momentum is not an equal, but a more elevated risk for Greece (as they are all in one happy European Union), in the end the only thing it does is that it raises risk and debt for the mere depressing benefit of one mere interest payment to ignore, a mere 12 weeks of time. The KPMG report as mentioned earlier shows that so far the anticipated return on equity is falling to 6%, which is on par with the minimum requirements for 2017 at 8%, yet will fall another 2% over the next two years, meaning that the minimum required target will be off by 40% in 24 months, which is going to be a large impact on every bank who had set their targets accordingly. This leaves me to speculate that the banks will become a lot more creative by underplaying the dangers for now and as such, Greece will hit waters a lot rougher and more dangerous for the Greek people soon enough. Belgium is merely one example. Italy, the Netherlands and Germany will be facing similar issues. The last one (read: Deutsche Bank) with exists from Australian markets as it is transforming (read: or is that reinventing) itself. As players from the senior side are moving all over the world to other competitive players, we see that the Deutsche bank is moving in some direction. This is the explosive field we see and this is the market that Greece is trying to get into again in what I would call a far too dangerous time to play that desperate card. To me it seems irresponsible on several fronts, so the initial ‘the worst is over‘ could before the end of fiscal year 2017 become ‘we are hitting additional hard times, that could not have been foreseen and were outside of the scope of anything we could normally expect‘, when the Greek people see that statement come, I will happily remind you that this was not as unexpected and that I foresaw the dangers months before they played out, when that happens, the Greek population will need to ask themselves how they got played, how their quality of life was diminished by well over 50% and how it happened that none of the politicians involved ever got to face court and judges on any of that.

I do not pretend to know the markets or that I am some banker with the insight of ‘Nostradamus’. Merely a person applying common sense, 6 languages and the use of a spreadsheet, this is how I got there, with all of the degrees I do have, none of those are in economy. So when you see the ground fall away from you just wonder how the economists or the economic reporters did not see it coming as some of them move to other shores with their awesome savings, leaving the Greeks to fend for themselves, deprived of whatever they were supposed to have.

When death comes knocking, the type ‘A’ bankers, often viewed as impatient, ambitious and smitten with business aggressiveness, suddenly become the type ‘B’ individuals, all happily willing to step aside letting whomever are behind them take the plunge into purgatory first. This is how quaint the reality of life will end up being considered for all those who are watching it unfold from a distance (if they get to be lucky enough to watch it from a distance).



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The orchestration has engaged

It is nice when the world falls apart, when you look at the abyss in front of you softly stating: ‘It cannot get any worse!’, then you feel a foot pressing against the lower spine of your back as you lose your balance and fall down. The last thing you hear is ‘Guess again!’

This is how certain news events felt the last few days. I am not referring to the McCain family, who states that the press has not learned anything, post-Leveson. Was anyone surprised?

My issue is with Andy Street at the John Lewis department store (at http://www.theguardian.com/business/2014/oct/03/john-lewis-boss-andy-street-says-france-finished). In light of Tesco, I wonder what drives this person. Yes, we all know that John Lewis is upper class shopping, yet is that reason for whatever you think? Apart from your freedom of speech, which I will not hinder, my question becomes, in light of your remark “He told the gathering of entrepreneurs that the award was “made of plastic and is frankly revolting”“, so not only are you a snob, the element grace is just not within you. Fair enough! Yet, consider that as you got recognised with an award, you should consider the 3 G’s, “Be Gracious, Be grateful, Get off!” (Thanks Paul Hogan for that jewel!)

I am all for freedom of speech, but I am also in favour of accountability. So when I read this: “Street advised his audience: “If you’ve got investments in French businesses, get them out quickly.” The eurozone’s second largest economy is struggling for growth under President François Hollande and the country’s finance minister admitted last month that it will overshoot the EU’s 3% budget deficit target this year. The French economy has been hampered by low growth and poor tax receipts in recent years“, I wonder how often Mr Street got hit with the silly stick in the hours before he spoke these words.

The second issue I see is also from the Guardian (at http://www.theguardian.com/business/2014/oct/02/warren-buffet-tesco-huge-mistake), this is an entirely different matter. We all make mistakes, so when a billionaire admits to this with the headline ‘Warren Buffett: ‘Tesco was a huge mistake’‘, it is not that big a deal initially, but then I went to think it through. Why is there such a massive overreaction in regards to Tesco? Yes, the profit was overstated; however, Tesco made over ONE BILLION! Can we please wake up now? In a year where most nations are doing worse than zero per cent, in a time when the straps are on so that we recheck every dime we spend. Tesco made over a Billion. Yes, I saw the statements ‘too big to fail‘, but in this instance I do not agree. In the case of the Dutch SNS Reaal, that place LOST a Billion, Tesco MADE a billion, so can we please wake up and not overreact?

So, when the response comes, ‘Well Lawrence, you seem to be overreacting here a little above average’, my response would be ‘darn right!’

You see, the initial events, of Blackrock moving out, whilst this is a drop on a plate, is what I personally see as a form of orchestration, a few big wigs who seem to be hoping on massive write offs for Tesco. There is something so darkly unethical about such actions, that these greed driven profiteers would endanger the incomes of tens of thousands just to get a nice dividend. This is what it looks like, am I right?

That remains to be seen, but overall the fight is not done yet. Tesco is not sitting still and the new Tablet as it launched just now could be another incentive, especially if we consider where Tesco could also be active. If this is the budget option, with Tesco Mobile in the Netherlands, This gem could find many happy homes during the Dutch Sain Nicholas feast (which is on December 5th), in additional to the Christmas celebrations, as many Dutch do both instances. Tesco is not done by a long shot and the activities that we see give me the impression that several actions do not seem to be about ‘cutting losses’, but as stated on many occasions that I am not an economist.

So, when I see this article http://www.independent.ie/business/irish/billionaire-mike-ashley-bets-on-tesco-bounce-back-30616710.html, where Mike Ashley, who owns Newcastle United takes a 43 million pound share believing that Tesco Shares will bounce back, I say “well done Mate!”, two thumbs up for this man. Now, let’s be honest, as this man seems to be a millionaire a thousand times over, 43 million will not seem like a big dent in his wallet, but the fact that this man is willing to enter more cash then I will ever make (even if I grow to the ripe old age of 14645), the entered amount will boggle my mind for some time to come.

This is one of the two parts where disbelieve is still on the front of my mind. Let’s be clear, I get the entire write off, loss of share value, yet the actual occurrence, especially with a billion in profits is too strong to be just a jittery action from the market. The fact that Blackrock moved out to this extent is still an issue. It left me with two options, either they know something Dave Lewis has not been told yet, or they wanted a curve so that they can make a sweet deal down the track. Let’s not forget that the value write off is just on paper, it is like a virtual event. Blackrock did not hand over these billions in gold or actual cash; we are seeing the fallout of virtual value (as I see it). And this all gets me to the final quote, which was also in the Warren Buffet article and had been mentioned in earlier articles. “UK fund manager Neil Woodford – who decided to sell his stake in Tesco in 2012 after its first profit warning – said last week it could be a long time before any of the British supermarkets became good investment prospects again“. Why?

You see, if he sold his shares earlier, fair enough. Yes, we see that Sainsbury is lowering expectations and shares have fallen there too. I think that all supermarkets will have to change their entire approach. We see that places like Aldi and Lidl are growing, especially in Australia where Aldi is now more and more a common sight, yet over here Woolworths and Coles remain. The same applies to England, in the end people need food, so these places will remain locations where food is bought and yes, as Tesco mobile remains competitive, people will come for that options too. All that is a given, so why such a massive overreaction?

This is at the heart of my foundation for suspected orchestration. If you are in the UK, then take a look at the papers and the degree that they are looking at Pricewaterhouse Coopers. They did the auditing for Tesco, so why is not every reporter looking at PwC and seeing what links might be there, which is not an accusation, but consider all the redigesting we see on several papers, they all mention PwC in a casual way, when they have been auditing Tesco for some time. Only the Times (at http://www.thetimes.co.uk/tto/business/industries/banking/article4214689.ece) had done so, yet the full article is not available to me as I am not a subscriber (one of the reasons why I stick to the Guardian).

There are two more quotes the first is “Shorting Tesco has been a profitable bet” and “Traders gamble on falling share prices by borrowing equities from other investors and selling them in the hope of later buying them back cheaper – known as shorting” The latter quote comes from http://www.thisismoney.co.uk/money/news/article-2772107/Dont-shred-thing-new-Tesco-chief-warns-staff.html, so it is a way to make money, even though it seems unethical, the act is not, but one could call it questionable. This is the one moment where I need to ask the one question in regards to the given scenario. Let me first add the following quote “Lewis’s ‘no shredding’ order will be seen as a sign that he is determined to get to the bottom of the problem.  It also indicates that the group fears the errors – whether or not deliberate – may extend deep into the company“, as well as “Cantor Fitzgerald analyst Mike Dennis said: ‘A discrepancy of this size suggests this is not just the behaviour of a few individuals, but behaviour instilled by the senior management team“, which is where I was all along. Is this the case and if that part was known to 1-2 insiders, could this be the reason for certain action? What if Blackrock dumped its part to cause a stronger downfall, so that they can buy it again later with a much more interesting profit curve, which makes up for a lot more than the small loss they had, what happens then?

All valid questions, I just wonder if those who have actual answers are willing to give them, because it looks like a slippery slope of massive proportions. As this happens to the one place that feeds a nation, how will the people react should evidence of intentional tampering ever be shown?

Then how angry will the people get?



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