Tag Archives: Bremain

June 23, 2016 · 19:54

On the day of voting

It is the day of the referendum and as is to be expected, the final views are given towards either Brexit or Bremain. In this we need to look at ‘yesterday’s news’ as given (at https://www.theguardian.com/world/2016/jun/22/nato-chief-says-uk-staying-in-the-eu-is-key-to-fighting-terrorism), we see the title ‘Nato chief says UK staying in the EU is key to fighting terrorism‘, to that my initial response is: “Is that so?” It is the quote “What I can do is tell you what matters for Nato, and a strong UK in a strong Europe is good for the UK and it’s good for Nato, because we are faced with unprecedented security challenges, with terrorism, with instability and an unpredictable security environment, and a fragmented Europe will add to instability and unpredictability“, the quote reads nice, but how correct is it? Perhaps correct is not even the right word here, as the quote is a correct one. The issue that Jens Stoltenberg, NATO’s secretary general is dancing around is seen in: ‘a strong UK in a strong Europe is good for the UK‘ as well as ‘a fragmented Europe will add to instability and unpredictability‘. You see that is already happening at present. The issue that has been on the table from the beginning is what I personally regard is the unacceptable amount of overspending and feigned credit limits, where the people have quite literally ended up with nothing to show for. In the second, there is the matter of Greece. Mind you, this is not about blaming Greece, this is about the fact that hard decisions should have been made 3 years ago, but Europe, and within that its own NATO were all about the status quo and the internal deception that if you ignore it, it goes away! That has not resolved in any resolution. Mario Draghi has set forth spending well over a trillion with what we can see, nothing to show for, only a weighted regression towards the unstable extreme. That can be shown in equal ease as we see that the trillions in overspending have not resulted in any positive light, only in slowly moving backwards, at the expense of…what exactly?

Well, we can argue that is equally at the expense of a more fragmented and weaker Europe. This is exactly the issue Mark Carney left me (in all honesty less towards Brexit and more towards Bremain), but the question, can we afford these unacceptable levels of spending and force European budgeting? That is something Mark Carney, Governor of the Bank of England cannot guarantee (which in all fairness he can’t and that does not reflect negatively on him), which is in my view the main reason why Brexit gained the momentum it needed.

The issue ‘add to instability and unpredictability‘ is equally an issue, not because of Brexit, but because of the EU, which in heart is trying to remain a negotiating party, even after we have seen too many examples where this is not leading to anything. As evidence I would like to call towards Turkey. The latest event (at http://www.dw.com/en/turkey-blocks-german-delegation-airbase-trip-over-armenian-genocide-row/a-19349172), where a historic event of 1915 is cause to block a German delegation. The amount of unacceptable acts by Turkey, whilst making all kinds of demands have left more than one party in a state of concern, but the EU wants to be seen as the ‘talking party’, not a decision maker in sight. Even if we ignore this event, the acts that Turkey has shown in regards towards refugee smuggling as well as the downing of the Russian Jet, based on clear evidence that makes the act in light of Islamic State issues utterly unacceptable, but the European Community is not speaking out. At best it is cautiously whispering. How is that contributing to ‘stability and predictability?‘ As I personally see it: it is not and it will not!

So the two elements in this NATO debacle are now already debunked and Bremain would not have made any difference. Now we get to Whopper dealer #2. Here we see France’s president, François Hollande making the statement that has been debunked long ago. The quote “There’s a very serious risk for the United Kingdom not to be able to access the common market and … the European economic area any more“. Do you actually think that ANY, I say again ANY party will be unwilling to commercially deal with the UK? Hah! I say. For example. If France holds true word and stops for example the commerce of French Wine, French Cheese and a few more items. It would lighten up the Cheese markets of the Netherlands and Belgium in addition there would be a massive growth opportunity for German and perhaps even Hungarian wines, whilst France’s commercial position shrinks from 6th to 11th on the world list of exports (based on 2015 estimates and my estimated French drop), falling below Belgium. So how is his statement folly? It is simple: it is a buyers’ market and the UK still wants to buy, providing it can sell too. Making them an interesting partner for all of Western Europe, especially as the UK imports more than it exports. It imported 629 million, whilst only exporting 465 million (source: Trade statistics for international business development), so a very welcome trading partner for every nation willing to strike a deal. Do you think for one moment that France could even chance to lose these levels of business? I personally think that this is not even a scaremongering quote, it is one made in infinite fear of the upcoming Frexit referendum which is a certain when Brexit happens. It is also one that will end the presidency of Francois Hollande, which is pretty much a given at present. Only now do we see more newscasts take the Frexit chance more seriously, almost two years after I predicted the danger and the chance of it. It is true that only Marine Le Penn is voicing this promise, but it is clear that too many French are demanding a French referendum, none of the French parties can avoid a French referendum at present, making the statement Francois Hollande makes even less valuable and more questionable.

The article has a few more ‘gems’ to throw against Bremain, but I think a clear point has been made. Those who are evangelising the EU, have been and remain to be unable and unwilling to address the flaws the EU has. An unaccountable part that refuses to stop wasting resources and funds, only to satisfy the status quo. They had 6 months to make strong changes here and nothing got done, so as it is now in the final hours we see iteration of events and iterations of claims that are being made on both sides of the isle, yet now it is more and more important that the Bremain side shows strength. One side that did that was the EU via Jens Stoltenberg and as I personally see it, it failed miserably!

It would be equally fair to have a go at Brexit now and I am all for fairness. Yet, I am a little biased, so bear with me (pun intended)! We see that David Cameron is having a go at his previous buddy Mickey Gove, or as non-intimi call him: the Right Honourable Michael Gove, Lord Chancellor Secretary of State for Justice (at http://www.theguardian.com/politics/2016/jun/22/cameron-gove-has-lost-it-in-comparing-anti-brexit-economists-to-nazi-experts). Here we see the important quote “We have to be careful about historical comparisons, but Albert Einstein during the 1930s was denounced by the German authorities for being wrong and his theories were denounced and one of the reasons, of course, he was denounced was because he was Jewish,” Gove said. “They got 100 German scientists in the pay of the government to say that he was wrong and Einstein said, ‘Look, if I was wrong, one would have been enough.’”, which is slightly awkward. Not because he is either right or wrong, but because any reference to any Nazi event tends to get emotional backlash. What he is questioning is what I have questioned. The economic ‘experts’ making the wildest claims are partially those same experts that have been wrongly forecasting the economy again and again. A system of overoptimistic forecasting which follows spending (often too high), after which we see cycles of managed bad news. This has been happening all over Europe, which is why there are many trillions of debt. These experts will not be trusted in any way, shape or form as they require the continuation of the EU (if they want to continue their gravy train) and as such, their views would be skewed and weighted.

What is interesting that Europe’s irresponsible overspending does not make it on either table, which remains at the heart of the matter as I see it! I believe it to be a balancing seesaw attempt to keep the US Dollar afloat, because when the Euro goes, the US Dollar will find itself in a reweighted status, one that is unlikely to be anything but disastrous for the US and for those relying on its stability.

To those deciding to vote today. To you I state: ‘Do what you honestly believe is the best for you, your family and England! No matter how you feel at present, find the speech Mark Carney gave to the House of Lords and read that before you vote. It is a true and honest recital, he mentions the risks England faces and those risks are real. The question becomes, are those risks worse than the current irresponsible acts by the massively overspending EU politicians? If the answer to that is Yes, than Bremain is your likely voice, if you feel that it is ‘no’, the fact that the current irresponsible acts by the EU politicians spending too much again and again is indeed the biggest danger, then Brexit becomes your path!‘

I have no voice in this, I have tried to give you my honest view in this. To show insight whenever and where ever I could. Now it is up to the voters and the results will be seen and felt all over the world from tomorrow onwards.

Mark Carney Testimonial in the House of Lords

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June 12, 2016 · 20:47

Brexit? Because Pizza!

Yes, it sounds nuts (honey covered ones), but that was pretty much the first thought that came to mind. You see, I have been trying to see beyond mere Brexit and Bremain, because comprehension gives insights that hopefully leads to wisdom. That is the path we need to be on in many cases (those who can). You see, we have seen one irresponsible side exposed in Brexit, that side is perhaps the majority reason why people are in the Brexit camp. No matter how clever Mark Carney was, the notion we see soon thereafter as Mario Draghi speaks of a willingness to spend another trillion plus to ‘jumpstart’ the economy is giving the voters even more reason to jump on the Brexit train. So no positive part there. No we get the European courts adding fuel to the fire that steams the Brexit train is seen (at http://www.theguardian.com/law/2016/jun/07/france-wrong-imprison-ghanian-woman-enter-britain-illegaly-eu-court-rules) in an article called ‘Imprisoning woman trying to illegally enter UK was wrong, EU rules‘. So these high educated judges are giving an outspoken ruling that it was wrong?

Perhaps this law student could give them something to consider ‘A person must not use a document which is, and which he or she knows to be, false, with the intention of inducing another person to accept it as genuine‘, which made it a crime as early as 1958 (actually long before that and not just in the UK). It is still a crime in most commonwealth nations. So perhaps this judge can explain to the people how having false identity papers is not a crime? It is speeches like these from the EU courts that makes people less interested to remain within the EU that the judges are trying to ‘non-enforce’. We have all heard the court stories about men who cannot get deported after a rape because he has the right to a family life. We tend to react really emotionally, which could be seen as equally wrong, yet the people who hear this will accept any verdict the victim gives, when she is voicing deportation, we all tend to shout it for the victim. In addition the case where a transgressor’s case is delayed for 2 years and in that time he has three additional children, so he can rely on article 8. I am not judging how appropriate the verdict is, I am merely voicing a thought most people in Britain tend to have. On the other side we see some statements that Bremain is the only option because of the damage to some profession when Brexit becomes real. There, the incomplete and incorrect statement that Metro gave recently (March 2016) ‘From April people will be deported for earning less than £35,000‘, whilst the evidence of this incorrectness is not correctly voiced does not help matters any. The fact that all media seems to ignore section 14(f) of the regulations that clearly state “In all cases, the pay must be compliant with National Minimum Wage regulations“, gives rise that unneeded stress is being created, making the issues muddy and stressful for all immigrants and it is in my view counterproductive. On that other side, we see misrepresentation voiced via the BBC, where we get ‘EU laws ‘prohibit UK from sending foreign criminals home’‘ (at http://www.bbc.com/news/uk-politics-eu-referendum-36467725), we see the two speakers with the quotes “Mr Raab said British families were being put at risk – and argued leaving the EU would make the UK ‘safer’” and “Immigration minister James Brokenshire, who backs Remain, said the UK had deported 6,500 EU criminals since 2010“. In my view the statement from Mr Raab is a bit of a joke. Not because of the validity of the claim, but it is my personal view that in a population of 68 million, 50 are less than a blip on any radar, in addition when looking at places like banks like the Royal Bank of Scotland and accountancy firms like Pricewaterhouse Coopers. So when we consider the ‘swap victims‘ and Tesco, how many victims did that lead to and how many of those involved in those matters are currently in prison? I partially agree that an immigrant when intentionally choosing a life of crime has no business living in the UK (or any nation that they were not born in), but let’s remain a little bit more realistic, shall we?

This is exactly why people are confused and some are scared. The fact that the political players are taking this approach to ‘mis-communicate’ the issues is matter of concern. As we see statements that are regarded as ‘credible independent experts’, should enough evidence be shown that these credible experts have been on any agenda, or that any clear level of miscommunication is found, than these so called experts should be barred from any government contracts for no less than 10 years. See how that works! Here my reasoning is what we initially saw in Iceland (source: Inside Job), there were these so called ‘experts’ and their reports and actions made for a change that should never have been allowed.

I reckon that last week’s position that includes certain stated by Ipso MORI, should be published with the raw data. It is time to make it clear to all that misrepresentation requires addressing on both sides of the isle!

So when we see the BBC article (at http://www.bbc.com/news/uk-politics-eu-referendum-36464905), ‘Don’t sit on the sidelines over EU, PM urges‘, which is a week old. Yet the quote “hailing warnings against an EU exit from Japanese multinational Hitachi and the chairwoman of the US Federal Reserve” instils within me the quotes “Would Janet Yellen be so kind to remain quiet and address the 19 trillion debt, preferably by actually solving the issues?” and towards Hitachi I would state “Yes, please consider moving away from a 68 million consumer base, and the moment the UK is progressing forward in an economy, consider the competitors that will then surpass you with 99% certainty. So the empty statement should be considered to be retracted at the very next opportunity!”

These are just my views, but consider in a global economy of margins, walking away from a customer base of 68 million is completely unheard of. The fact that Hitachi did what it could to expand in the Netherlands, which is small in comparison to the UK implies clearly that it requires the UK to keep its top position. That view is strengthened when we consider the quote “Mr Nakanishi said his firm, whose European headquarters is located in Berkshire, had invested £1bn in the UK energy and rail sectors in recent years. He said it was in the process of recruiting 730 new workers to build the next generation of high-speed inter-city trains“, that part remains and it will make money the same way, it is a good investment, especially when the UK economy gets past the first wave and especially in light of the European economy slowing down for 2 more years. When Hitachi walks away and other Japanese firms come in Hitachi will find itself surpassed in more than one way. It cannot take that chance as I see it, yet again, it is my speculation and I could be wrong.

Now, I am not stating that this view is the right one, I am merely in the personal believe that my view is not wrong! Let me explain the difference. Hitachi might leave, yet why? Is that because of mere commerce or due to corporate tax shelters (or tax havens) that could fall away? How is a firm an asset when it relies on non-taxation? I think that it is time to completely overhaul that system. Revenue sounds sexy, but when it is not required to be taxed, how are they a good thing? We can argue about the semantics of a tax haven versus tax shelter until the oceans freeze over. The simple fact is that the tax coffers remain too empty to support the British way of life! If you do not believe me, than consider the shortage the UK currently has, it is nowhere as bad as in the US and Japan, but it is not good, the amoral approach that corporations have remains unaddressed. We were too eager to accept the amoral route of taxation, now that the backfire comes, we become all ‘holier than though’, yet it is not too late to take a different course, the corporations not adjusting will lose out. In the end, they have a product that requires a customer base, no customer base, no revenue, no profit. I am oversimplifying this! Am I wrong?

As I see it both sides seem to be misrepresenting the case, Bremain and Brexit are both coming with issues and to some extent they are intentionally miscommunicating the issue, creating fear for all those involved. The question here becomes the issue we see. When is a presentation for one’s position misrepresentation towards the people at large?

I showed yesterday with decent clarity that Bremain is misrepresenting the facts and I believe that we can see at present that Brexit is doing the same. It is the Independent that is now adding fuel to the fire. ‘EU referendum: Poll reveals massive swing to Brexit – with just 12 days to go‘ (at http://www.independent.co.uk/news/uk/politics/eu-referendum-poll-brexit-leave-campaign-10-point-lead-remain-boris-johnson-nigel-farage-david-a7075131.html). On one side we see no wrong “The survey of 2,000 people by ORB found that 55 per cent believe the UK should leave the EU (up four points since our last poll in April), while 45 per cent want it to remain (down four points)” is fair enough. Yet, who was asked? I showed to all clearly that weighting and responses was an issue yesterday. Now we see the responses (2000), which is definitely indicative, but from where? You see, this article is from the survey point of view good. It gives us the numbers and other elements, yet the one part not given is where they were from. Perhaps that information was not available? And in this case geographic location is most certainly a factor!

The part that I do find interesting and valuable is seen in two quotes “According to ORB, 56 per cent of people who voted for Labour at last year’s general election now back Remain when turnout is taken into account, but a dangerously high 44 per cent support Leave” and “Only 38 per cent of Tory voters endorse David Cameron’s stance by backing Remain, while 62 per cent support Leave“, which gives another light a part we did anticipate, it is the Conservative/UKIP side that has the largest Brexit sentiment. It is strengthened by 44% of labour voters. The fact that we see “the economy is more important than immigration” only gives additional value to this survey. If there is one issue with the article than it would be the ‘Take our EU referendum poll‘, because apart from Exit and Remain, the option ‘Undecided’ should be there, because that group remains too large and it will remain a significant group until the day before the election. In the end I would ‘casually’ predict it to be a 50.3 versus 49.6 result, because anything that is this important will nearly always be a close call. From a comical point of view it works, especially when we see the faces on Wall Street in the minutes after the results are announced.

What is nearly a given is no matter how it turns out, we will likely see the new version of Trivial Pursuit with an additional card. ‘What happened on June 23rd 2016?‘

The answer “Brexit, because Pizza!” or “Bremain, because Chicken Tikka Masala!” will be known in 12 days.

 

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June 10, 2016 · 23:19

Issues of weights and responses

We are forever weighted into a situation, we are always adjusted and often enough we are never one, but anywhere between 0.3 and 25.9. That is the consequence of market research. So when I saw the title ‘You’re wrong Michael Gove – experts are trusted far more than you‘, my initial worry was who these ‘experts’ are. The article (at http://www.theguardian.com/commentisfree/2016/jun/09/michael-gove-experts-academics-vote) has a few quotes that are funny to some, hilarious to others and all kinds of BS to another group. I reckon that none of them regard this to be reliable or trustworthy.

Why is that?

when you consider the quote “rarely in British politics has independent, impartial analysis been so necessary“, people might agree that it is a requirement, but whomever is behind those analyses are for the most all working for someone else’s agenda, which makes those claims equally pointless. Let’s illustrate this: “A separate Survation poll for British Future even found that 63% thought economists could be trusted“, the link is there, so let’s take a look.

The laughter should start at slide 2, where we see the question “which of the following best sums up your current voting intention?” the question might seem relevant and the percentages might look good, but the graph is a joke.

– What was the population of that survey?
That is a question that was never given, on none of these pages. It makes the entire paper look like an unreliable joke! A place like Ipsos MORI should know better! And perhaps they do, because they were named regarded another survey, this is done by I know not who. Is that not an interesting fact? I know that Ipsos MORI knows better, because some of them have been my students in the past (if they still work there).

– Were the results weighted and how?
None of these facts made it into that paper, making the results unreliable to the largest of degrees and in addition to that, the fact that the article does not give any clear indication on what is what gives additional reasons for worry.

The people at large are being duped by a media machine that seems to be more profitable to remain connected to the EU, as such, most media options will not give you any decent part of the facts and the truth. So, does this mean that Michael Gove is right?

I feel decently certain that is equally not the case. Most people, especially those connected to politics tend to take an approach towards ‘their’ goals! In that Michael Gove would be no exception. The media is a lot worse in this. It is my personal view that have kept people in the dark of events when it suited either them or their advertisers. How can that be reliable?

As for the ‘economists’, when this system falls apart, most of them will be without a job. As such, what will they preach you think? The older economists all know that no job equals retirements and many of them will soon thereafter no longer be riding the juicy gravy train. Once you have been on that one, we all would do whatever we can to remain part of it. In addition to that, when we look at the so called 63% part. The fact that the answers are Alan Sugar, CEO of a big company, Boss of a small business, a farmer, a fisherman and an economist are part of this is another matter. Was this for ‘light entertainment’, was it serious? If so, was the designer not entirely in a decent state of mind? It could be that these were the most significant groups, but that is speculation because the graph has so much missing information that the entire interpretation of it becomes matter of non-perspective. Just consider that these were the most significant groups, why is there no clarification on the graph? There is so much wrong here that it also makes me question the entire article by Anand Menon and Jonathan Portes. This might be an opinion article, but it is in the Guardian, the Guardian should have followed this up by the Guardian themselves. The fact that Anand is ‘labelled’ as ‘Anand Menon is a director of UK in a Changing Europe’ and Jonathan is labelled as ‘director of the National Institute of Economic and Social Research and former chief economist at the Cabinet Office’, so are they would be or wannabe politicians? The fact that they ‘rely’ on items from ‘Survation for British Future’ makes this all an issue, it should be an issue for all of you!

There is another quote that needs to be dealt with. The quote “the idea that academics are biased in their research because they get “EU money”. In our careers, we have conducted research funded – usually through competitive tender processes – by the EU, the UK government, companies and trade unions, and never been shy of telling any of them things that they didn’t want to hear. Our professional reputations depend on it” sounds nice, but we can agree that ‘academics’ with their papers regarding the economic viability of Iceland were accepted without question. The evidence was seen in the Oscar awarded documentary Inside Job (2010). It is one of the most visible pieces of evidence, but in no way the strongest one. Another piece of evidence is seen (at https://www.ifw-members.ifw-kiel.de/publications/the-financial-crisis-and-the-systemic-failure-of-academic-economics/KWP_1489_ColanderetalFinancial%20Crisis.pdf), with a clear abstract. Which in part is “The economics profession has failed in communicating the limitations, weaknesses, and even dangers of its preferred models to the public. This state of affairs makes clear the need for a major reorientation of focus in the research economists undertake, as well as for the establishment of an ethical code that would ask economists to understand and communicate the limitations and potential misuses of their models“. You see, a statistician, a politician and a barrister have something in common. They answer a very specific question. Their reaction to that specific question becomes their paper, which we saw in the Iceland situation. In case of the politician we have another element. You see, when the answer doesn’t suit them, they will change the question. That is where we are, we see answers, but the clear questions that leads to them is not in that presentation (or the numbers and weights).

It follows by a reversed psychology quote “if we were self-serving and intent only on personal enrichment, our interest would be very much in a leave vote. If auditors are those who “arrive after the battle and bayonet the wounded” it is professional economists and political scientists (not to mention lawyers) who would rake in the consultancy cash in the uncertain atmosphere of a vote to leave“, it is reverse psychology because the statement is quite the opposite of factual and Brexit could destabilise the Euro, after the UK, France is most likely to leave, which will push Germany out too. That is what they all fear, because when the Euro goes, the Dollar (the US currency) will take a massive dive, well over 30% of economists will be out of a job. There will be no funds for any in any of the so called ‘vulture’ industries. You see, what currency would the consultancy cash be in? There is a realistic danger that the US will lose well over 20% of its value, those who get out and move into their local currency would take no less damage, but after that, the only damage they would take are local based issues. The US with minus 19 trillion would have little option other than default on their loans. It would (speculatively speaking) drive debt from 19 trillion to 23 trillion almost overnight. The timeframe that this impact on is harder to calculate. You see, politically speaking Obama would want to stretch any event to the last day of his administration, so that the mess ends with the next administration, which is also speculation from my side. This would also impact the total US debt, which is speculated to be well over $60 trillion, but a clear reliable number is one I do not have at present.

All these factors will be impacted and Brexit will have a definite impact on all of it. Should you doubt that, do you think that the US president would have made the trip for some remembrance speech involving WW2? Brexit is the real nightmare Wall Street faces. If Brexit was a singular issue, it would not be that big a problem. Yet, that is the one part that is partially a given. You see, this is not a thought that just popped up. I wrote about this in May 2013 (at https://lawlordtobe.com/2013/05/15/a-noun-of-non-profit/), in the article ‘A noun of non-profit‘, I voiced it as “Consider a large (really large) barge, that barge was kept in place by 4 strong anchors. UK, France, Germany and Italy. Yes, we to do know that most are in shabby state, yet, overall these nations are large, stable and democratic (that matters). They keep the Barge EU afloat in a stable place on the whimsy stormy sea called economy. If the UK walks away, then we have a new situation. None of the other nations have the size and strength of the anchor required and the EU now becomes a less stable place where the barge shifts“, this is the danger Brexit poses. As governments and large corporations have been playing with safety margins, the three anchors will not be able to keep a clear stability. That will cause waves and the EU barge will start to shift all over the economic ocean, impacting all currencies linked to the Euro, the US dollar ending up being hit the hardest. It is a danger governments and economists fear, because their cushy lives will end. In that same frame academics are not equipped to deal with the aftermath. The abstract quote “the limitations and potential misuses of their models”, the question then becomes whether misuses of their models were intentionally allowed for. It is not an accusation, it is a question. I do not claim to have the answer, I am merely asking the clear questions a former chief economist at the Cabinet Office seems to be avoiding in his opinion piece and the Guardian is equally not asking questions on more than one level.

Are you starting to feel the breeze?

This is why I was initially on the Brexit side, I am still not convinced that Brexit is not the solution, but Mark Carney clearly pulled me away from the idea that Brexit is the only solution. It still might, but there will be consequences. You see I believe the UK debt to be manageable, to total debt that the EU is pushing the EU in is not a solution, other than that it takes pressure away from the American debt. Since when is Europe responsible for that? The US has not taken any responsibility for too many events from 2004 onwards. The EU is in another weak position, having one trading partner is one thing, when the US will have to deal separately with UK, Germany and France, these individual nations might get a much better national deal.

One part that remains a given is that there are no assurances. I believe the UK would stand up stronger after a few years and there will be hardship for that time, hardship for a lot of people, yet at present there is absolutely no evidence that the quality of life in the UK is improving, most models are speculative and after a year they end up showing to be inaccurate. That is also the side that requires additional addressing. Even though we should not act on our needs, it ends up what people do, economists and non-economists alike.

Which gives us the final quote “but if the public is better informed than it otherwise would be about one of the most important issues in this campaign, we’ll have done our job“, which is the one thing they did not do, basically they misinformed you, because the numbers without proper support of numbers are empty and pointless. You see, if the question was given to 2-3 thousand people it should not count towards the choice of 68 million people. Weighted, the chance of unbalanced clustering is too large to consider, meaning that these numbers should be regarded as highly unreliable. In my opinion, the article misinformed you, showing that everyone has an agenda. I can only personally state that I have no agenda and you would not be wrong to ignore that part. Believe me or choose to not believe me. I only hope that you will look at what is presented and question every part you see. Let’s take one more look to the initial evidence that the writers used. In the first (at https://www.ipsos-mori.com/Assets/Docs/Polls/ipsos-mori-business-and-brexit.pdf), the Ipsos MORI part. In the second (at http://www.britishfuture.org/wp-content/uploads/2015/06/The-EU-referendum-and-public-trust_Survation-for-British-Future-2015.pdf). We can clearly see that the Ipsos MORI gives much better (being it incomplete) information. Slide 6 does show a nice part, Journalists and Politicians are at the bottom of trustworthiness. Yet without clear response numbers and weighting, this data is not reliable enough and the vote might take a different direction in the end. In my view, the power used here is to use the numbers to sway the undecided into the direction they want them to go, into the Bremain direction. Can I prove it? No!

But I am asking questions regarding this that those who should aren’t. I personally believe that makes my view more reliable, but I am biased here. Make sure you ask the right questions and it seems that there is nearly no one left to trust in this matter, isn’t that the saddest part of all in this?

 

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June 4, 2016 · 14:17

Your Affordable Front door Key

There was an interesting article in the Guardian yesterday (at http://www.theguardian.com/housing-network/2016/jun/03/london-foreign-investors-money-housing-property). The article has a missing side, but that is not in question. You see Dawn Foster is illuminating an essential side. The issue ‘housing without xenophobia‘ is well found and well-founded too, all rounded and informative. An excellent piece. My side is not of opposition, but on a part she did not pause on (which was never a requirement).

The quote “they drone about how “Britain is full”” is one you need to remember, you probably will because the average UKIP person will hammer it to an uninterested audience on a daily basis. The second quote is probably one of the most brilliant ones “Britain is not “full” and very little of the country is built upon. With an ageing demographic, we need our population to expand; and with birth rates declining, immigration will be key to propping up the economy, the NHS and the care industry“, I agree with Dawn, but in that light she does not acknowledge that London is actually ‘full’, that part is nearly a given. Nearly being the operative word as the bulk of the UK population can’t afford to live there. There are plenty of other places where people in the UK cannot live, because the prices have gone up by too much. You see, the silent part in this article is all around ‘affordable housing’.

Dawn does illustrate this in the quote “But the most pernicious and covert xenophobia in the housing debate concerns “foreign ownership”. The amount of overseas investment, particularly in the London housing market, is increasing. Empty towers owned by foreign money are also an issue, because they ramp up house prices and concentrate construction on luxury suites rather than family homes and flats for first-time buyers” and she emphasises the need for housing to be affordable. Yet, I ‘accuse’ her of remaining silent? How come?

Well, first of all, her article was not required to ponder on it, perhaps we the readers should be doing that. The UK must soon, if not as early as yesterday amend the investment rules regarding real estate and investments. You see Dawn is not the first person getting close to the issue. There was David Batty, who is not as batty as some say he is (at http://www.theguardian.com/housing-network/2016/jan/30/luxury-london-homes-86m-social-housing), where we see on January 30th of this year “A Treasury spokesman said: “This government is already taking strong action to ensure fairness in the housing market and help people on to the housing ladder. In 2014 we introduced a higher rate of stamp duty for properties over £1.5m and from April 2016 additional properties will face additional rates of stamp duty. This will enable us to double the affordable housing budget”“, which makes me wonder how far those plans are coming along. In April of this year (at http://www.theguardian.com/cities/2016/apr/20/london-housing-crisis-sub-prime-problem-super-prime), Anna Minton reminds us with “Down the road from Balfron, Peter and Alison Smithson’s Robin Hood Gardens, also internationally acclaimed, failed in its bid to gain listing, and is now one of dozens of estates, housing tens of thousands of people around London, facing imminent demolition“, we should not forget to carefully ponder the quote “While David Cameron has heavily promoted the sink estate narrative to justify “estate regeneration” – essentially a euphemism for demolition – Lord Adonis (PS not the same person Greece refers to), the former Labour minister appointed by George Osborne to chair the national infrastructure commission, is given to blunter statements, having made it clear that a central reason to knock down London’s estates is that they are sitting on “some of the most expensive land in the world”“, it is there that we see the problems and the issues for London and for the UK. The part ‘the most expensive land in the world‘ comes from a push we saw in the 80’s. I remember those times really well. Here is an actual decent quote from the Telegraph (who knew): “Mrs Thatcher and her Chancellor Geoffrey Howe confronted the recession in a very brutal way. Rather that cut taxes, they raised them, and rather than increase Government spending, they slashed it“, written by Angela Monaghan. It is not unlike the days the UK is facing right now, people have forgotten that from that era new wealth was created, in similar light, the politicians have forgotten that life in those days was at least to some extent affordable when we consider the UK rents, so there is the issue that is unspoken, we need to cap certain events, not in light of some assumptionary value of land, but to a value where we count the value on how many people are housed within that area. That is where we need to see the changes to investment taxation when it comes to real estate. So what if this balance is not a seesaw as we often approach it, what if it is more like a Balancing Bird Center of Gravity (at http://www.amazon.com/Balancing-Center-Gravity-Physics-Colors/dp/B0019LNESE)? So as the body and tail of the bird is the lucrative side of investment property as foreign investors see it, than the affordable housing part would be represented by the size of the wings. The fairness of not opposing ‘profit’ for those foreign and domestic investors, but to carry their profit they need to invest into the wings and quite a large amount too. Of course, that could mean that the wings are not in London, but that would not be the worst part would it? In the end those houses are also part of their fortune, whether it is rent to own, the foundation of those investors becoming housing corporations or even the start of a new British housing dynasty. They will grow into long term investors and growing the need the UK has for affordable housing, which is where we see the highly needed balance of profit and endurance.

That is the silent non addressed issue. That part should have been dealt with for the longest of amounts. One of the articles mentions Heygate Estate, we see the area of Walworth, Southwark, and South-London as a housing project, but what it became was even worse than a failure. The fact that it required to be demolished 40 years later, only 40 years later is the huge issue. The idea of modernisation was overshadowed by many issues, yet in this light is the clarity that the buildings failed to foster a sense of community. In my view it seems to image a prison estate. Modernisation without elegance fosters alienation plain and simple. Architect Tim Tinker stated: “farrago of half-truths and lies put together by people who should have known better” (at http://www.bbc.com/news/uk-england-london-23371735), yet who are those people? You see, when you place people in such a massive proximity, you negate the need for what I regard to be ‘spacious privacy‘. You might not comprehend this, or at least some of you will not, but when you are in an office, try to relate to people working in cubicles, those people tend to be different. Isolation in a work environment creates a different form of segregation. There is actually a decent blog article on the matter (at https://www.tradegecko.com/blog/open-office-beneficial-detrimental), I think that there is another layer at work. The writer states this on the open Facebook/Google culture “They are popular and effective no doubt, but only work because their office layouts align with their company culture and caters to diverse staff needs“, here I do not completely agree. Yes, he is stating a correct fact, but an incomplete one. You see, in an open environment we do not only work our way, work in open space and in cohesion, it works because these people work with the need to consider the work of others. That is where these housing projects are an issue. As there is a lack of community, consideration takes a downturn for the worse more and more. Yes, it can breed inconsideration, crime and anti-social behaviour, but is that actually happening or is that only happening in the mind of the other person, the fear of hardship due to isolation? Only the people who lived there would be able to tell for certain.

It is a mere question and the question matters because that is a psychological event that has been known LONG BEFORE that housing project became to be. I personally believe that if the project was more spacious, with a small Tesco mall in the middle with a lower population on such an area, I reckon (an assumption on my side) that a critical population point was surpassed here. I do not have the skills or the math to help you in that regard, it is only speculation from my side. However, to see housing to be demolished after merely 40 years shows a larger problem, problems with planning, with execution and perhaps even with the quality. Whatever it is, this needs to be done better and it needs to be done soon and adjusting foreign investments is the only clear way to do this (so far four administrations have been a failure in this). The issue as I see it is that Margaret Thatcher was the last one truly working on affordable housing. Some state that this started to happen in 1997, whilst there is enough evidence that the flat line was as early as 1991, making the starting point of this issue whilst the power was in the hands of Sir John Major, the fact that this continued during what we now laughingly refer to as New Labour. Even as we accept that a lot was done under the Thatcher government, we have to raise the issue that several of them after 40 years are now changing hands and getting pushed into other projects, making the costs 40 years ago high and might be regarded as a bad investment. This is here we are now, the need for affordable housing and no solution in sight, especially when the government is well over a trillion short. Foreign investors could be the solution, but it will require a different kind of investor. Now, we will hear on how those investors will consider it bad investment and walk away, because plenty of them are all about short term gains. I am stating that we do not deny them the gains, we just want them to be longer term, especially with the massive tax breaks they enjoy. They can feel free to move to the US and invest there, but when that 18 trillion debt collection falters their investments could collapse or be held against much higher tariffs making the United Kingdom the best option for a safe investment, even if it is not short term. And if they back off there will be other new millionaires jumping at the chance of a long term gain with a long term balance of value and increased exposure as welcomed new wealth.

The BBC is showing us the reality of the mess that affordable housing has given its tenants: “An entire community has been forcibly displaced for the sake of mere land value speculation“, which is the failing of three governments and a really inadequate planning department, not to mention that in all this the House of Lords equally failed its citizens by not adjusting the balance against such greed driven motives. In addition, after a long term of playing Ping Pong with the Hose of Commons, we see that projects are set to readjusting, which would make sense, but the fact that the tenants are ‘forcibly displaced for the sake of mere land value‘, whilst the tenants are partially the reason for the increase in value gives weight that these tenants should not have been allowed to be displaced, but should have been awarded an exchange to a similar sized apartment at no extra cost. The value was in part due to their tenancy. From my point of view both the House of Commons and the House of Lords failed these tenants, which makes us wonder: who gives a flying fig when greed comes to town?

There is in part the silence too, but that will be an article for another day.

The UK is currently in a place that whether Brexit happens or they are faced with Bremain, local issues will not be resolved until certain measures are taken to keep the people safe, not just from investors, but from local folly and rezoning needs at a price that might not be worth the effort, not in the long run.

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May 16, 2016 · 20:38

No Man’s Brexit

Yes, I am not kidding, the day after the release of No Man’s Sky, we will see the UK referendum regarding the UK leaving the EU. The two correlate in a simple way. The game has 18,446,744,073,709,551,616 planets. That same number seems to be the number of opinions that the 743 million Europeans seem to have regarding Brexit, so we need to take heed what to believe.

Personally, I feel that Brexit might be the way to go, yet as stated previously, Mark Carney, aka Governor of the British Bank, aka Marky Mark of the British Coin seems to be swaying me towards ‘Bremain’. Let me explain this. For the most, the reasoning is given here (at http://www.theguardian.com/politics/video/2016/may/15/mark-carney-defends-brexit-intervention-eu-bank-england-video). The important quote is “identify the issues, come straight with the British people about them and then take steps to mitigate them“. That is one thing this governor seems to have been doing from the beginning, to state it bluntly, that is what he gets paid for (nothing Personal Mr Governor)!

In opposition a case could possibly be made regarding ‘transparency’, but let’s not try to cut the bacon with a piece of string.

The issue in this case is a quote in the Guardian on that same page as the video, which was “Earlier in the programme, energy minister Andrea Leadsom accused Carney of ‘dangerous intervention’“. Let’s take a step back. The Minister of State at the Department of Energy and Climate Change, the person, who according to the Independent (at http://www.independent.co.uk/news/uk/politics/energy-minister-andrea-leadsom-asked-whether-climate-change-was-real-when-she-started-the-job-a6710971.html) had to ask ‘whether climate change was real when she started the job‘ (which was on May 11th 2015), that person is questioning Governor Carney on being straight with the British people? That’s a barrel of laughs on the worst of Monday mornings imaginable. Oh, I stand corrected, the 11th of May 2015 was a Monday!

So from this quote, I am willing to state that Andrea, a politician was unaware or just didn’t watch An Inconvenient Truth, a 2006 documentary film about former United States Vice President Al Gore’s campaign to educate citizens about global warming. I think that she failed on multiple levels, especially as she studied political sciences. This gets to be even more interesting when we see the quote “in the past she has written to the Prime Minister calling for cuts to wind farm subsidies, and has criticised the pre-coalition Labour government for signing up to an EU target that called for 15 per cent of the UK’s energy to come from renewable sources by 2015“,

That is the person accusing Governor Carney on ‘dangerous intervention’ activities!

Now, there is not enough information for me whether cuts to wind farm subsidies was right or wrong. Let’s not forget that the UK is over a trillion in debt and certain cuts need to be made. The other part is in this case (without more evidence) equally debatable. That does not change the fact that regardless of her past economic positions whether she is anywhere near qualified to comment on the actions of the Governor of the Bank of England.

In my not to humble opinion, I would state no! You see Mark Carney was quoted as: “Carney defended his impartiality, saying it was important that people do not ignore economic risks“, I reckon that leaving the EU could have a few consequences tax wise and the issues regarding her Guernsey-based brother-in-law, Peter de Putron. This is in light of the title ‘Top Tory has family link with offshore banker who gave party £800,000‘ (at http://www.theguardian.com/politics/2014/jul/08/andrea-leadsom-family-links-offshore-bank-donations-tories). You see, I am an Australian Liberal, meaning that I regard myself a British Conservative and let me tell you, I would contribute to my part, yet if I am really lucky, I could perhaps donate 0.05% of that amount at best. When I work day and night I expect to receive some form of income, not pay an additional 800K (an amount I will likely never have, not even with my University degrees). The fact that a Brother in Law banker hands that kind of donations out might not be too controversial when it is for charity, when it is to a political party one must question the reasoning (read: personal tactical benefits) here.

So there are all kinds of questions that come to mind regarding Andrea Leadsom and it is my personal believe that (Brexit or not), her questioning Governor Carney leaves a lot to be desired. This 2014 article reveals another part that is important to consider: “A US non-profit news organisation, the International Consortium of Investigative Journalists, has obtained records of more than 20,000 names. The Guardian has exclusively analysed the ICIJ’s data, and begins to reveal those who have had dealings with a discreet Jersey branch of Kleinwort Benson, a well-known London firm which specialises in ‘wealth management’“. When you consider that news and the ‘feigned’ emotions we saw regarding Mossack Fonseca, that part comes again into question. You see, the issue has been legislation, tax legislation, legislation of wealth management and this implies that some of the available data goes back to well before 2010. This clearly implies that Labor was very much in the know on these matters. It also clearly implies that both sides of the isle should have pushed tax reforms a lot sooner than is currently shown. I agree that people might see this as unreasonable, but let’s be clear, these loopholes are there, Andrea Leadsom broke no laws. We see another version of amoral versus immoral. In my view, in regards to her acts I could see her statement as immoral, mainly because the changes could end up giving her more loopholes to push non-taxable parts of herself across the British realm.

Am I wrong?

That is still the issue, because Brexit will cause a massive amount of concerns and in that regard to keep the UK interesting more tax breaks might be the consequence of the EU separation (speculative statement). I might be proven correct but it is too early day to tell what the actual taxation impact will be, that part will remain an unknown, especially as people realise that only 5 billion of the 220 billion to Greece entered the State coffers, the rest went to the banks, paying small parts of loans and massive parts of outstanding interest bills. That is the driving realisation that more and more people are going towards the Brexit road. Most believe that the recession we hear about will be short lived and the upbeat will grow stronger and stronger as the loans diminish. I agree to some degree, but I equally foresee that Mark Carney is correct, the recession that is likely to follow will change the timeline, perhaps by a lot. That is the part that is absent of an answer, absent of a final solution, most of us believe that not being part of paying for other UK only recessions is the quickest way to a surplus finance coffer.

This is how I feel to some degree, but the warnings that Mark Carney gives us are not to be ignored. Plainly stated, at present the difference between a coffer and a coffin is currently way too small for my comfort.

This is why I remain on the fence. I am not completely convinced either way, but Mark Carney was clear and concise in the House of Lords and that was the massive sway to get me from certainly Brexit to almost cautiously Bremain. Yet the biggest issues are not within the UK, Greece, the IMF and other parties are trying to keep the present engine running, in addition the US economy with minus 19 trillion is equally a concern as the debt grew with 1 trillion in a year, basically it gained the total UK debt in less than 20 months, as they are closely linked with the Euro, one will tumble the other, in that regard Brexit is still the way to go in my book. It does not diminish the risks that Mark Carney warned us for, it makes just makes them more acceptable in my book. Nowhere do I mention that Governor Carney was guilty of ‘dangerous intervention’, he is merely informing us. I think that pro Brexit Andrea Leadsom did something stupid, she might be pro Brexit like I was in the beginning, but her less than intelligent remark only pushes people away from Brexit as her statement can be dissected by people less intelligent than me in mere seconds.

So, I still remain on the fence because the reasons for Brexit are there, but less strong than they were, merely because the risk we run by Brexit. In my mind the question becomes, if there is no Brexit, can we truly make the rest of Europe more accountable for their budgets? That part is still the number one reason for me to consider Brexit. I am not pointing the finger at Greece here, but at the total debt Europe has, which is almost equaling the American debt. The question is, how much of this debt is instilled by Wall Street to keep the seesaw of economics in balance? To keep the machine running to satisfy the 35,000 greed driven executives on Wall Street? We seem to focus on the top 1% in America, which makes for the 3 million people living really really nice, but that is nothing compared to the top 1% of that top 1%, their wealth is beyond measure, consider that only 1% of that top list (the 1% of the 1%) are the 350 people that made the small solutions like Facebook, Oracle, Apple and Microsoft.

I will give you one guess to guess where the other 34,650 got their money from.

This is why I still remain a little towards Brexit, because governments on a global scale ignored the need for proper legislation. At present the US might promise a lot, but in the end he has become nothing more than a quack quack president and as such he will not get anything done. Isn’t it nice that he wants to act in the 11th hour whilst his own party will be very unlikely to support him? You see they are also up for re-election and they have options for another term, President Obama does not. Now consider the ‘evidence’ I gave at the beginning, basically this issue was ignored for 7 years. If you are considering that I am not being up front and honest with you, consider the fact that President Obama did not once mention the US tax havens that are in the US, to be more precise, the Rothschild Trusts all over America, their total treasures are stated to be in excess of 100 trillion, but no one can tell for sure, their fortune is too vast and always in motion. This is only one voice, mine, apparently there are 18,446,744,073,709,551,615 other views on this.

 

 

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April 24, 2016 · 17:50

Ignoranus Totalicus

We can see the title as a pig Latin version of being a ‘complete dumbass’, which stands opposite of the Latin phrase to be all knowing as ‘sciens omnia’, yet who is this ignoranus? That is very much the debate. For this we need to take a look at a few sources. Let’s start the game at the Guardian. The first one (at http://www.theguardian.com/politics/2016/apr/22/barack-obama-brexit-uk-back-of-queue-for-trade-talks) is ‘Barack Obama: Brexit would put UK ‘back of the queue’ for trade talks‘. You see, after the quality voice Mark Carney gave at the House of Lords, one would initially expect that a president (even a lame duck one), would bring his ‘A’ game to the table. That part in question is indeed in doubt when we see the following parts: “And on that matter, for example, I think it’s fair to say that maybe some point down the line there might be a UK-US trade agreement, but it’s not going to happen any time soon because our focus is in negotiating with a big bloc, the European Union, to get a trade agreement done”. You see, the statement might sound correct, but it is not. You see America is not (read: no longer) about ‘trade agreements’ it is about non-accountable agreements of exploitation. The fact that this same president nags about taxes and tax havens, is the same person that allows for massive tax havens on American soil, not addressing those and in that same light takes an 180 turn on taxation in the meeting in the Hague as I mentioned in my earlier blog is part of the issue. These actions are matters of great concern. I wonder why we even bother listening to a president who will be out of the office in a mere 6 months. If this was such a big deal both nominations for president would not merely make a statement. The next part gives more than one issue “Obama argued that it was much more efficient for the US to negotiate with the EU as a bloc, rather than attempt to take on “piecemeal trade agreements”, and suggested that Brexit would send a signal of division to the world“, it is indeed more efficient, but moreover, it makes for easier exploitation. Exploitation is at the heart of this matter and the bulk of the politicians tend to have the spinal cord of a paperback, not one hardcover amongst them. The final part is seen when we get “This is a decision for the people of the United Kingdom to make. I’m not coming here to fix any votes. I’m not casting a vote myself. I am offering my opinion, and in democracies, everybody should want more information, not less, and you shouldn’t be afraid to hear an argument being made”, which is fine in one part, but consider the cost of a president appearing in person when a TV message could do the same if it was merely to ‘offer an opinion’. America is afraid, it has never been this bankrupt before, this deep in debt and the toppling of the Euro will crash the Dollar, that could  push no less than one third in a state of poverty. Wall Street and the financial connections are making their toll and the exiting president is doing whatever he can to keep the American nightmare alive, it does not matter who comes next for the mere reason that Brexit comes when he is still in charge. If Brexit comes into effect he will see the Dow Jones drop to a level not seen before, because Brexit is a guarantee that France will demand a Frexit referendum. This would guarantee the end of the Euro and as such the dollar cannot continue on the level it is. My voice is on par with justice minister, Dominic Raab. As he states ““You can’t say on the one hand that the US-UK special relationship is as strong as ever and always will be, and in the next breath say take my advice or you go to the back of the queue,” he said. “I don’t think the British people will be blackmailed by anyone, let alone a lame duck US president on his way out”“, he gives a truth that matters. This was not a simple visit where it is about an opinion. This is about the US being in such deep debt that Brexit could start the collapse of the US economy and its currency. This whilst still under this president. This president needs to get results before the end of his presidency, if that does not happen, than the 44th President of the United States Barack Obama will be the president who ended the American dream and started the American nightmare.

The next article, also in the Guardian gives us the quotes from Hillary Clinton, and as such she illuminates the issues that Britons have had with their situation. The quote “transatlantic cooperation is essential, and that cooperation is strongest when Europe is united. She has always valued a strong United Kingdom in a strong EU. And she values a strong British voice in the EU“, we do not object to that view, we all object to the non-accountability that large corporations (not just American ones) have, most of them American. President Obama signed his own political ‘death warrant’ when he made the administration to do a 180 about face in 2013. The quote The quote “Senior officials in Washington have made it known they will not stand for rule changes that narrowly target the activities of some of the nation’s fastest growing multinationals“, which I reiterated in ‘Delusional‘ (at https://lawlordtobe.com/2016/04/07/delusional/), can we agree that places, most of them valued at multiple billions, don’t really need tax breaks? That misjudgement of such Titanic proportions is now the millstone around this president’s neck. Yet this is not the only part, it is about timing, which started when the issues in Greece escalated. That started the path we are on now. As the people at large became more aware on the one-sidedness of the EEC and the way their savings are now dwindling down is how the people started to side with more right extreme parties. There are more relevant quotes from President Obama in this article too, but they do not require comment, if you do not grasp the casual way that America ignored issues that hurt the bulk of the entire planet, than you are either too young, or you are unable to grasp the danger you are in.

Yet this is not the end. The independent (at http://www.independent.co.uk/voices/barack-obama-on-the-eu-referendum-i-wont-tell-you-how-to-vote-but-heres-how-i-want-you-to-vote-a6997436.html), we see another side. We see a likeminded article, the issues that I have been writing for some time. The quote on Boris Johnson matters. We get to read: “Johnson did indeed make the point that the US would never accept the kind of external authority that he thinks the British should continue to accept. But his clowning in his first paragraph obliterated that important debate and undermined his own authority“, which is a truth, yet the issue that matters is that on the other side Mark Carney as Governor of the Bank of England gave a response in the House of Lords that was so strong that it swayed me from Brexit to Bremain. I remain on the fence, as neutral as possible so that the people have at least one source that they can trust to be trying to remain neutral. I regard myself a conservative, yet this goes beyond mere politics. This vote, whether Brexit or Bremain will influence the life of the voters as well as their children. If you are 18 and still a virgin, worry not, this referendum will set the tone for the next 15 years at least, so any children you create in the next 10 years will likely see the consequence of this outcome.

In the final part of part 1 there is the Washington Post (at https://www.washingtonpost.com/politics/obama-plunges-into-heated-debate-over-britains-future-in-the-eu/2016/04/22/43657cba-0867-11e6-a12f-ea5aed7958dc_story.html), for the most it was all said before, yet the Post had one gem that does matter: “Even though Obama has been outspoken in his support for Britain staying in the European Union, analysts urged him to tread lightly on his visit. “This is an emotionally charged discussion, and it really does not respond to calm, rational logic” said Heather Conley, a senior European analyst at the Center for Strategic and International Studies in Washington”, she is setting the correct tone here but is missing a key element. As I stated in the past and in this piece, where I am not going anywhere near ‘calm rational logic‘, I am going towards the exploitation drive that corporate America has shown as well as the flaccid response of the last two administrations in that regard. What Greece started, the American response to greed from the financial industry did not help any and this American president is too clear a reminder of that fact.

So now to answer the question ‘Who is the Ignoranus Totalicus?’ It is you and me (more you than me in all honesty). You see, many people are not getting properly informed about the consequences of either Bremain or Brexit. They flock together with the person they ‘trust’, with the politicians that gets them those 15 seconds in the limelight. This referendum is too important for that, which is why there is turmoil, not just in the Conservative party, but in nearly all parties except UKIP. If you want to be the ignoranus, than be happy in that. For those who are worried (and you all should be), you need to get the proper information, get the real points, not just the one the press gives and go to the voting booth clear of mind and sound of choice, so that the choice you made reflects the future you seek for you and your family if you have one (or going to have one).

This is the one part that everyone seems to agree on, either side, the impact will be long and lasting, if you at least got that far, then you are on the right track and in this case it is perfectly fine to be selfish and consider only what is best for you and your family, because that is the one that matters.

 

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March 21, 2016 · 22:21

Is the truth out there?

That is the question that sprung to mind, when the article ‘Brexit could cost £100bn and nearly 1m jobs, CBI warns‘ (at http://www.theguardian.com/politics/2016/mar/21/brexit-could-cost-100bn-and-nearly-1m-jobs-cbi-warns) crossed my screen an hour ago. Of course it then continues with the subtitle ‘Report conducted by PricewaterhouseCoopers for the CBI‘, perhaps you remember that firm named PwC? The people behind the books kept for Tesco. The firm the press avoids like the plague (especially when digging into Tesco issues). A report for the CBI no less. When we look at wiki we get ‘Confederation of British Industry is a UK business organisation, which in total speaks for 190,000 businesses’, so basically, because businesses are afraid to export their articles, we get this level of scaremongering. And let’s be honest, when Lehman Brothers is not available, PwC is all that remains. The Wiki reference will be explained shortly.

The first paragraph states “Leaving the European Union would cause a serious shock to the UK economy that could lead to 950,000 job losses and leave the average household £3,700 worse off by 2020, a report commissioned by the CBI business lobby group has warned“, I personally consider this to be a blatant lie!

There is NO WAY that there is any clear data on this event. The reason is simple. This situation has never happened before so there are questions, that is a given, yet what they predict is that 2 times 100% of exports that the UK ships to the USA becomes lost revenue. This is just ludicrous. Leave it to the place that embellished 110 million in revenue for Tesco will be able to lose 1000 times that amount in goods and services for the CBI. I am merely speculating here. I wish I could give you more, but the press is very engaged into not confronting PricewaterhouseCoopers on their actions.

The second paragraph “an analysis conducted by accountancy firm PricewaterhouseCoopers for the CBI said that Brexit could cost the UK economy £100bn – the equivalent of 5% of GDP – by 2020 and would cause long-lasting economic damage from which it would never recover“, let take a look at the parts PwC (as I see it) hides behind ‘could cost‘ meaning that it might, it is not a given. the second part ‘would cause‘, means that if they lose 100 billion then it would impact the economy, which we can all agree with, but that level of loss is NOT a given. Lastly there is ‘long-lasting economic damage from which it would never recover’, ‘would never’ is also not a given, consider that thanks to British Labour, who caused a massive part of the fourteen hundred billion in debt, on that part 100 billion will have an impact, the economy will recover, yet in all fairness, at what speed? We all agree that this massive extra level of debt is not a good thing, but it all began with ‘could cost‘ so it is not a given! The CBI, like frightened little sissies are trying to sway voters through fear. You see, if these businesses have an actual product to share, people will buy it.

They then continue to push more fear that people would lose between £175 and £300 a month. I would be shocked, we all would be shocked. Yet again there is ‘could be lower‘, meaning it is not a given. When I read “Carolyn Fairbairn, the CBI’s director general, said: “This analysis shows very clearly why leaving the European Union would be a real blow for living standards, jobs and growth“, my response would be ‘Carolyn Fairbairn, we know you are high and mighty with previous position at the  Competition and Markets Authority, Lloyds Banking Group and the UK Statistics Authority, so if you truly stand behind these analyses you will give us all (in open data) the raw data, the analyses and the conclusions with data connections‘.

I feel certain that we will see all kinds of weighting, forecasting and predictive modelling. As I see them, they will be utterly useless, for the mere reason I gave at the start of my blog “This situation has never happened before“, there will be turmoil, there will be a time of flux, but this forecast of utter blackness on non-given facts and shady forecasts is just completely out of bounds.

You see, I went to Wiki for a reason, when we go to their website we get a few issues (and initially their website was unreachable for about 15 minutes). The first one is from 15th of March (at http://news.cbi.org.uk/news/cbi-to-make-economic-case-to-remain-in-eu-after-reaffirming-strong-member-mandate/), here we get the quote “80% of CBI members think being in EU is best for their business – ComRes survey“, now, consider the following two elements, first is the ‘given’ fact on their site “CBI’s relationship with 190,000 businesses of all sizes across the UK“, now consider that survey where 80% wants to stay within had the following quote: “The survey had 773 responses among small, medium and large firms across the whole of the UK. It reveals 80% of CBI members, when weighted to reflect its membership – including 71% of small and mid-sized business members – believe that the UK remaining a member of the EU would be best for their business. Overall, 5% say it is in their firms’ best interests for the UK to leave the EU, with 15% unsure“, So out of 773 responses, 116 were not sure, so only 658 were certain one way or another, so the 80% comes from that group?

In addition, the fact that I, in 24 years have never seen ANY survey been answered for 100%, so how many answered it, how were the numbers given and how can any of the numbers have ANY level of reliability? That is even before we start looking into the questionnaires some people tend to make, which is often enough not that neutral to begin with.

All these thoughts took 45 seconds to form, after which I needed 30 minutes to look into some of the known givens whilst Graham Norton was playing in the background. The biggest fun I had was considering the part where the CBI is basically stating between the lines that “UK products are so shaite, that it can only be sold under EU membership“, is that not so Mrs Fairbairn? I believe that UK produce is high, high enough that there will always be a demand and high enough that people will go out of their way to get it. The gaming column last week that had a go at Brexit earlier was eager to ignore the fact that some of the better games developers are British, there is British Beef, British Lamb, the UK foundation in vegetables and fruits. The United Kingdom has always had a good stock and a proud tradition. I think that these traditional times can return the UK to better times.

That is also a speculation on my side. You see, this is the one time that the Telegraph has a fair point (yes, this rare occurrence happened on February 23rd 2016), There is the quote “The only appalling part is that we import so much poor quality foreign food at the expense of our own farmers“, I believe that there is a deeper truth. Obesity comes from junk food and from bad quality food. Yes, produce might rise a little in price, yet when you get the same quality ingredients from eating only 50% of the amount of junk goods you used to eat because it was cheaper, I believe that the overall health of the British population would also go up (read: lowering obesity). Mrs Fairbairn could have given that information too, you see the CBI site claimed to be connected to 190,000 businesses, so how many of them are farms?

This is no longer the age of Tesco (thanks to PwC to some extent), in addition, it stops being the place for Aldi and Lidl, it will slowly return to being the place of the neighbourhood grocery and butcher. I have nothing against Aldi and Lidl, yet their models do not run on the small local farms, their margins (low margins mind you) comes from bulk retail from big portion purchasers to deliver to all stores. It is a fair model, yet after Brexit there will be a change, their margins will fall, that is a reality, but if this opts for small business owners to rise from the ashes, the Brits in general will all win, we would see a need for jobs, not a loss of jobs. Again, this is speculative on my side, yet I do not go about scaring you readers like the CBI is doing through PricewaterhouseCoopers.

So, how about my own statement: “I personally consider this to be a blatant lie“?

As I see it, this report has issues, possibly a whole lot of them and if that is not the case, Carolyn Fairbairn would (read: should) have all the data ready for us all. When we see this level of incomplete information, giving rise to the possibility of misinformation the reference to ‘blatant lie’ is a fair given one, as I see it of course.

Now, mind you, the CBI page has the full report ready (at http://news.cbi.org.uk/news/leaving-eu-would-cause-a-serious-shock-to-uk-economy-new-pwc-analysis/leaving-the-eu-implications-for-the-uk-economy/), a 79 page document, so what does that give us and why was that not in the Guardian (as far as I could tell)?

We see the following under the key findings:

  • We have assessed the potential economic impacts of a UK exit from the EU under two possible scenarios
  • We estimate that total UK GDP in 2020 could be between around 3% and 5.5% lower under the FTA and WTO scenarios respectively than if the UK remains in the EU (interesting is how ‘we estimate that’ was not in bold)
  • The negative impact represents a reduction of around £55-100 billion in UK GDP, at 2015 values

And the final bullet point was “As with any economic modelling exercise, our estimates are subject to many uncertainties“, which is actually the core of it all, too many uncertainties, which gives additional weight to my statement.

Yet how were these numbers derived?

You see, when we see ‘Table 2.1: Exit scenario results – percentage difference in real UK GDP from levels in counterfactual scenario‘, we think we have something here, but on what core business is this founded? Is this on raw data sets? On aggregated data? You see, PwC have done all kinds of reports where they were overly optimistic, is the idea that they are intensely overly conservative on any of these numbers (by request of the CBI) and that the negative numbers are actually quite too negative? The fact that they are making predictions until 2030, whilst so far many firms resorting to analyses have been unable to make any decent prediction 3 years into the future, they ended to be overly optimistic again and again by more than one percent (try remembering Greece and Cyprus). Then there is: “A vote to leave the EU would create economic and political uncertainty that could last for several years while the UK Government negotiates the terms of its exit from the EU as well as new trade arrangements with non-EU countries“. Here is the kicker: the report did not once, I say again not once properly discuss the option of growing economies by promoting a growth interaction between Commonwealth nations. The UK stands not alone! Her siblings Australia, Canada, New Zealand, India et al, still need goods too. Whilst we see the ‘BS’ (Belonius Substance) from America regarding how the UK must stay within the EU, the UK can decide to collaborate with India on Generic medication. Now suddenly we get some individual in a white condo going on how friends should remain friends (that individual tends to be addressed as President of the United States), so here is one side of commerce that would ‘suddenly’ open doors for all kinds of trade.

The bibliography has a fair amount of theory references, and even though their existence, or their academic value is not in question, what is in question is the PDF we are looking at, especially when we see ‘Figure D.5: Working age population projections under the WTO and FTA scenarios and counterfactual‘, we see these numbers and graphs, but from what dataset? Where do we see any reference to the data population used, especially when we see a collection of graphs from various sources but with no clear reference to the numbers that these predictions are based on? In one example starting on page 47, we see ‘C.1 Economic context and key issues‘, with a reference to three graphs from two different suppliers. This gives me a few additional question marks (and it should leave you with even more questions). You see, if 80% wants to stay in Europe as stated by the CBI, whilst they had less than 800 responses, how does that hold any weight to the fact that they, on their own site state “the CBI’s relationship with 190,000 businesses of all sizes across the UK gives us a unique insight into what the result will mean for UK prosperity“, which means that 80% of the 0.4% of the businesses that decided to answer the call of the survey. I think I have raised enough questions for you the reader to be a lot less worried in this case!

Now, I am not stating that there will not be any issues, because the UK will face issues, but in equal measure the UK will stop making massive donations to a system that does not hold some of its members properly to account. It is like carrying buckets of water to the sea, an empty gesture that is a clear waste of time and money.

By the way, that report has a very interesting by-line which is shown at the very end (page 79): “This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice“, so if that is the moment of non-accountability than my final words are towards the writer of the article Julia Kollewe and especially her boss (or the boss of her boss, Katharine Viner): ‘How could you have been so stupid to go with this article. From my point of view, as a blogger tends to be a subjective one, it is a hack job, nothing more than mere anti Brexit material‘. As a newspaper you should have known a lot better! The fact that Julia writes “By taking a clear stance on Brexit, the CBI differs from the smaller business lobby group the British Chambers of Commerce, which is trying to be impartial. It recently suspended its director general, John Longworth, from his post after he suggested that Britain would be better off outside the EU“, yes, they might have done this, and they did it in what I regard a shady and shoddy way!

The article in the Guardian and the report leaves us with a few questions regarding Carolyn Fairbairn, the CBI as well as a few questions regarding the editorial of the Guardian. I hope that at the very least that part has been brought to the surface by me writing this article.

To all a lovely evening and whether you believe in Brexit or Bremain, make sure that you go towards the referendum properly informed!

 

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March 19, 2016 · 12:08

European Exodus Community

There is a reality that people seem to miss. There is a reality that the people at large have been ignoring for far too long. Big business had been until early this year trivialising the entire Brexit issue. Some started the catchphrase ‘Bremain’, but that went out of fashion fast. At some point, in October 2015 something expected happened. An American opened his mount (in this case Trade representative Michael Froman), which gave the Britons “If you leave EU you face barriers to trading with America“, Is that really so? In my view, if the Democratic Party does not get its A-game in place, many will not want to be in trade with a nation that cannot pay its bill anyway. You see, if Brexit becomes a reality, the Euro will take a sizeable dive, which will also hurt the US Dollar. More important, as the US has not been able to keep any kind of control on their budgeting, the US issue would take additional tumbles. Consider that the US exports $57 billion to the UK, should one direction fall away, than so does the other direction, you see pharmaceuticals can come from India, Vehicles can come from Japan and Medical Technical equipment can come from places like the Netherlands (to some extent). We are looking at an easy 12 billion going somewhere else. So that part is not a given, yes, UK export might have a few hitches, yet when other players are found for at least 20 billion in goods, new arrangements will be an option (very fast), not so much for the US of A.

Yet, I get it. The USA is afraid, very afraid because of what the Euro changes will bring and their fear is escalating. This we get from Euractiv (at https://www.euractiv.com/section/uk-europe/news/majority-of-french-back-holding-frexit-referendum/), who is now proclaiming that “53% of French surveyed would like to hold a referendum on their country’s continued EU membership“, an issue I saw coming a long time ago. i was the first one keeping my eye on this, and even as Hollande and Sarkozy are trying to make other ‘arrangements’ they now realise that non-compliance with the French voters will mean that the bulk will demand Marine Le Pen be elected, another prediction I saw coming. More important, should Brexit be averted, than Frexit still remains a real risk. It implies that American will almost be forced to send their own Al Jolson European Tour 2016-2017, yet unlike Al Jolson, this tour will not be a sell-out success, it will be seen as a painful reminder of America not cleaning ‘house’ in the 2004-2009 era. An era that brought many nations to the edge of despair. Now we see the Obama administration trying the option of Al Jolson singing ‘can I have a little more please‘, an idea many Europeans will regard as offensive. The changes will give additional worry. From one perspective, if the dollar collapses, export from America should go through the roof, but the overly mismanaged economy gives a clear clarion call that the funds to cate to this need would end up being insufficient. The latter part is my own speculation, I have no hard numbers supporting that part. From all the export, one in eight is about machinery. This seems to be a solid one, especially from the excellence in the past, yet in all this we in equal measure ignore that the US is not the only place to get this stuff, so if a part will move to an Asian provider, American wealth numbers will take a sharp dive, all that because Michael Froman seemed to have forgotten that they are not the only player in town.

Yet I digress!

There is now the realistic concern that a European Exodus could hit the community, a real danger, which also means that certain borders will come into a different play. This will impact the USA as well as Europe. Yet instead of a clear summary, the press seems to be throwing too much in the air with emotional plays from both sides of that isle which I consider to be not so productive. We see not so helpful articles by Jane McConnell on ‘why Brexit would be apocalyptic for the games industry‘ with quotes like “British gaming receives a wealth of talent and funding as a result of being in the EU“, which is a joke to say the least. When we see PC Gamer giving us info regarding Ubisoft Montreal “but it was built primarily on the strength of Quebec’s generous subsidies and tax breaks, and with a newly-elected government facing serious debt problems, those breaks are being cut back. That has CEO Yannis Mallat taking another look at the studio’s long-term future“, so that billion Euro firm in France is ‘surviving’ due to tax breaks. (at http://www.pcgamer.com/ubisoft-ceo-ponders-reductions-to-quebec-tax-breaks/). Now, remember that this article is 2 years old. So basically in the time that Ubisoft created mere mediocrity in gaming. In all that time only the recently released ‘the Division‘ seems to be up to critical scrap. So how about not catering to tax breaks? The final argument “and thanks to the EU working time directive, we are guaranteed 20 days a year of paid annual leave, offering us all us all at least one day we can happily set aside for binge playing. That’s worth remembering“, how interesting that she relies on that part, not on the part of government accountability which is actually driving people away. In addition, remember Markus Persson, simple small software firm in Sweden? It made over 2 billion in the end (from Minecraft). So, let’s not cater to mediocrity! The same issue can be stated for Hello Games. It is about the reset the bar for gaming quality, both small firms, just the two visible in a group of dozens. These tax breaks are there for the small players, but they have been overwhelmingly used by large players to not dig into the ‘quality setting’ frontiers they should have been in.

I feel personally decently certain that Brexit is becoming a reality. If the press would focus on truth and fact, not on emotion to sway the people, there would be a certainty that Brexit will be. It will drive Frexit too. The EEC will become a near death-trap for the last one in, which means that Italy will not be in a happy place between 2017 and 2018. I expect it will drive the membership numbers of Lega Nord with Matteo Salvini, I cannot tell how strong, because I know too little of the other Italian players. Yet in all this, certain other players are rearing its ugly head. You see, when we go back to November 2015 we see a paper by Natixis (at http://cib.natixis.com/flushdoc.aspx?id=88106), there we see “In the worst case scenario, the United Kingdom leaves the EU and does not join the European Free Trade Association; there would then be custom tariffs between the United Kingdom and the EU, but given the size of the trade flows, the impact on the economies would be limited. The United Kingdom has a very small industry and its exports of services, which are very specialised, would probably not be too severely affected“, this is the view I also ‘synched’ to. Basically, the bad sides of the EU towards the UK are massively larger than the good sides. The Natixis paper by Patrick Artus might not be complete, but it gives the goods that matter, from that point of view.

You see, the short-sighted users of a spreadsheet forgot the drive that Brexit could have, the view I predicted already in 2014. In addition, the growth and danger that right parties all over Europe became, fuelling one another is a side I did not see coming either. In addition to that view, we saw in November that Wolf Richter, Wolf Street in Business insider had “A Brexit would be ‘a non-event’“. I wonder where that came from. Oh no, I need not wonder because they mention Natixis and quote the relevant parts.

So what changed?

Well, the part I foresaw and everyone ignored is that Frexit is slowly becoming a reality. Now we have ourselves a lot more than a mere horserace, because this is what Natixis can’t use. It is in massive parts a French conglomerate, not a global one. In that regard Frexit will impact on Natixis as a whole. In this I mean that Natixis will see its profit margins decrease by a fair bit (we are talking a game of billions here), whilst in equal part limit certain economic movements and options. That makes it a different event. And the less we say about the impact on the US the better. Ah, here I am wrong!

You see, Lieutenant general Frederick Benjamin Hodges gives us the following last Tuesday (at http://www.reuters.com/article/us-britain-eu-usa-idUSKCN0WH0QJ), we get ‘Brexit would weaken NATO versus Russia‘, which is not entirely correct, is it Freddie? It is not a lie either! The mess seems complicated but it is not. We can agree that the General is under orders here. I reckon massively from his Commander in Chief who dropped the ball several times and is sending the General out into an economic field that is not ‘his’ theatre of war. Here is the part that is unwritten (not by me), whilst everyone was looking at Lehman Brothers and other Wall Street players, they all forgot about Natixis, who has a wealth portfolio that delivers an annual return that outranks more than just a few EU nations. When that limits and dwindles many players will panic, because the survival of some is now depending on continuity. Something that behind the screens of Brexit and Frexit comes to terms. With Brexit there was enough time to make adjustments, with Frexit that time will not be there, apart from the fact that it will force Germany to take a different course (one that is expected, but cannot be predicted). In all this that is only one element. The General is right that NATO will weaken, what is not given is that it will change the expenditure that some nations are making, which will directly hit Raytheon, Northrop Grumman, Boeing and Lockheed Martin, which will now be a sizeable dent in the American economy too. Apart from a collapsing Euro, America will get hit by a double whammy, that part is not given (it is ignored by too many), not shown and not elaborated on. It is how expenditure changes. NATO existed since long before the Euro was a reality, but as those evolutions were taken, by lowering defence spending on a national level in Europe, we see that this ignored cluster will have serious consequences, very much so for the American military hardware industry.

Can I be wrong?

That is what matter, for me as much as for you the reader. We will be depending on two elements, Is Brexit a reality in the first and will it force Frexit in the second. The first is less up in the air, but not a given, in the second, when Brexit happens, Frexit will be a certainty. Even if Brexit does not happen now, the French are worried and they do not want to be the last in the row of decision makers as Italy currently is, the fact that 53% want this referendum is worrying to many players (except for Marine Le Pen). Both Francois Hollande and Nicolas Sarkozy cannot ignore the cries of the French, if they do, they will feel the discomfort that Marie Antoinette had on October 16th 1793 (well, one can fantasize, can one not?), because France is for the French (as they see it), not for the Americans. They will come down hard on their government, which is playing perfectly into the hands of Marine Le Pen. No matter what happens, with or without Brexit. Germany cannot sustain the environment without the other three players, which places the UK now in a tactical predicament. Relying on France to keep cool, this is what drives Brexit to additional momentum.

So all this will drive the European Exodus Community, to some extent people, because national business needs the motivated people to get businesses working and moving forward, but for the most it will be about small businesses in a national setting. Those who adapt fast will grow. Larger corporations will feel the disastrous drag of not changing gears, of not adapting to the new environment, mainly because those head offices (many in America and Asia) will not comprehend the old systems that drove them and the changes required to make them. Those depending on decision makers will find that delays will cost increasingly until (often enough) the decision has been made too late. Rowing against the current will be a new slogan that larger players will have to deal with, driving their talents to smaller places where speed is available. This exodus environment will hit in many places, in many layers on several fronts. A front where only the adjusted will make headway. I wonder whether 2018 will be the year of culling the corporate herd. It is too soon to tell, but it will for the most depend on the brethren Brexit and Frexit both leaving this rocky boat called EEC!

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