Tag Archives: David Cameron

October 24, 2013 · 20:35

A Label for Labour

If we can use the information (to some extent) that the Guardian gave us this morning, then the first reference would be ‘Whinging’ 1. To complain, whine 2. A message from the labour party! So, the second one actually explains part of the newscast. The story was how according to Miliband, Cameron was losing control over the energy policy. (At http://www.theguardian.com/politics/2013/oct/24/edmiliband-davidcameron) How does he figure that?

The facts are not that unclear. There once was a non-fairy tale involving 6 commercial enterprises, who to some degree had to make a profit. In addition, the following headline should be interesting “Every UK home to face 15pc energy price rise” (Jan 2008)

Not to mention that parliament had an interesting document (at www.parliament.uk/briefing-papers/sn04153.pdf ). There are two issues, one, several sources mention an average 16% annual increase during 3 terms of labour. I mention it, but some numbers are sketchy, so I have some reservations how correct those numbers were, even though the parliament briefing papers do show a spike in that time frame.

It does not matter what the direct cause was, however, in three labour terms, nothing was done to limit that price increase, so labour’s nagging whilst the honourable Ed Miliband is on the non-winner side of the isle is rather fishy to say the least. Yes, we should acknowledge that The Electricity Act 1989 was enacted under the conservatives by Baroness Thatcher, then Prime Minister Thatcher. I reckon that there should always be a certain amount of questions when we privatise any form of utility. Commerce is the quickest attack on any wallet (a life lesson that is universally accepted).

So, even though there are questions, the one involving 3 terms of labour and energy prices should remain high on that list.

The article has a few other points of attention, Miliband’s quote “But this prime minister is too weak to stand up for the consumer and he always takes the side of the big six companies.” Really Edward? You do remember the greed issues involving a commercial enterprise? Or perhaps the London School of Economics classes (the ones on Economy) had a different focus? ;-), you party animal you! 🙂

Anyway, we can nag on the last three terms (but then we might sound like labour), in this term there needs to be an actual focus not on stopping (which is slightly non-realistic), but to some extent limiting price increases. Although allowing the French and the Chinese into the UK energy game might put a limit on price hikes to some extent, but it remains to be left in the hands of non-government, hence at that point, it remains a commercial play. What are the options?

There is actually an idea that might work. The idea was not mine; I picked it up in Sweden around 2001. The idea was that sound stable firms started to buy and install wind farms (in this case 1-3 turbines per firm). There are plenty of places to do that. The UK and Scotland could offer such areas too. Yes, in many places people might complain on the view, and they could select to pay £100-£200 a year more, or just accept the ‘lesser’ view. Consider that these people will get some tax benefits, but more importantly, they could lessen the power grid pressure and at times contribute to the net inviting refunds. There is an additional benefit. As the net gets a power feed, all over the place, losing power points would not have the blackout results other solutions have. So consider that through whatever non-governmental funding these windmills are added, the UK grid could end up getting a solid power addition by 1500-3000 turbines.

In the past I have ALWAYS spoken out against the irresponsible investment of retirement funds. If we accept that these turbines would prove to be a stable return on investment, keep price hikes down and allow for alternative ways to stabilise power needs, then why not look into such an adoption?

I never heard anything mentioned in that regard in the House of Commons (I do admit, I dozed off at some point, but it was 02:00 when that happened). So perhaps we can all look for a solution together? Because no matter where you live, we all need water and power, having alternatives when greed driven elements strike is NEVER a bad idea.

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September 23, 2013 · 13:31

What lies beneath!

Today is the day we get to take a look at those who get and those who did not receive an Emmy. This is a remarkable year for it. Not because of the winners and non-winners, but from my personal view on the quality of TV shows. There was little way for me to predict the winners in this year. This is not a year where there is a clear winner. They were so many amazing shows and some of them blew away their own fans. So whether we cheer for 30 Rock, Louis, Nurse Jackie or Glee, or even all of them. 2013 shows that the audience won in a very big way. If the bad economy brings out creativity then no one can afford to miss the 2014 Emmy’s as true creativity is just around the corner.

Talking about the economy, is there any news? Well, today, not unlike the Emmy’s the UK is facing issues like vetting the spending by labour, Ed Milliband does not tolerate backstabbing and George Osborne is facing Scepticism over the multi-billion pound sale of Lloyds Banking Group.

So as we are in the sphere of the Emmy, considering that soon there will be the Tony for theatre and the BAFTA and Academy awards for the cinema, here is the Churchill Award. This golden statue shows us Churchill in a thick winter coat and a cigar. Like the image we had of this great man during WW2. We should not confuse the statue with a Hitchcock or any other drama figure. Here we ‘award’ the politician.

So in good standing, the Churchill award for political events goes to (wait for it)……

Nigel Farage of UKIP!

Surprised? Angry?

Let me elaborate. I am not on his side. I remain for now a conservative. Yet, when we watch the news in triviality, where not unlike the issues in Australia Labour seems to be in power struggle after power struggle we wonder why we should support a party where the bickering of being in control takes so much energy and time of a party. Now I am all in favour of a Milliband labour with the bedroom tax gone. Yet, how will certain measures be made with a trillion plus in deficits? Similar warning in regards to the squabbling was reported by BBC’s Justin Parkinson as he recouped the words by Dave Prentis.

The second player, ‘my’ preferred side David Cameron was accused of bringing back more of the ‘nasty’. That is not a bad thing (still highly uncomfortable). I agree that costs have to be cut, yet for now he has not gotten a hold on their spending. In addition his peer in parliament George Gideon Oliver Osborne, Chancellor of the Exchequer did not help much. Yes, on his watch the economy is slightly better. However, if we give weight to the Guardian (http://www.theguardian.com/business/2013/sep/22/first-signs-recovery-despite-austerity-george-osborne) it was not his victory. William Keegan has his ducks more than just in a row and as such this article has weight. Still, the UK could have done a lot worse. Heavily against the conservatives is the Welfare Reform Act 2012 (aka bedroom tax). I always thought of this as a bad move. Especially, in a time and age, where the UK housing shortage is massive and no one can afford to move or change apartment. Nailing these people to their empty bedroom (or cupboard with bed) is just not the way cricket should be played.

So we see the winner Nigel Farage. I consider this man to be dangerous. His ideas are out there and the consequences of moving away from Europe will hurt the UK economy in ways we still cannot foresee. Still the idea of a flat tax approach has merit. When we consider the Stemcor’s of the world (or in this case, just the UK) the umbrella options and other small little twinkles that give the wealth more deductibility’s then the average welfare person many wonder. The fact that he gets stigmatised on matters seem to work positive for him as well.

Still, the plays he plans should he ever get to number 10 will hurt the UK in ways many of his voter will not realise until it is too late. He speaks to those losing much, to those in economic hardship, ever willing to blame anyone else, even if no one (bankers excluded) is to blame.

The man has the charisma and he has the drive, people react to that and in the end, all sheep plenty and few will follow the herder that gives them the best music (even if he is sitting next to a blowing volcano). If the others do not change their ways then my initial prediction from my previous blog (at https://lawlordtobe.com/2013/05/04/ukip-or-u-k-i-p-ur-kiddin-i-presume) will come to be true. Labour and Conservatives on the same opposition side of the isle. That would be one hell of a show to get tickets to.

 

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September 6, 2013 · 13:20

The Syrian principle

Syria has been on the forefront of most minds. Some look at it to solve it, some to see stability as a reason and some, or so it seems see Syria as a solution to a second game that has stages in play. So the question from this moment becomes whether Syria is now altered into a stack of dominoes? If we apply the domino principle to certain events in the Middle East, then the question becomes, how fair is that assessment?

First there is the fact that Brahimi, envoy to the UN has been very ‘outspoken’ in getting Iran involved. This is not me questioning Mr Brahimi as to why he wanted Iran to be part of it anyway. The question I have is valid, yet, I will admit that Mr Lakhdar Brahimi has an impressive list of achieved levels of expertise and as such we should regard him as the NHL coach bringing back the Stanley cup more than once. Like Jack Adams and Tommy Ivan. As a true blue Capitals fan, I still think the Red Wings suck (massively). Yet, these two coaches brought home Stanley three times each. They needed the players, but the coaches made it happen. We hate the team, we respect the coaches (it’s a screwed up world, I know). Such is life! Lakhdar Brahimi is in the same league. We do not like, or even care for the players at present, but the mitigation has made it happen in the past and as such we will watch how the play unfolds.

The mentioned play does have a lingering after taste. When Russia set into motion another Nuclear Power plant, when their support to Iran was given and they requested Iran to make certain moves, was this the upcoming play they had started to begin with?

Of course Russia has the resources, the power, the persuasion and the economic interests to make this all happen. It does however bring the question who or what Iran is actually representing? Syria, the Syrian people or just themselves?

Does this reflect on Lakhdar Brahimi?

I do not believe that this is the case. His work for the Elders, his work as a board member for the Stockholm International Peace Research Institute as well as his work for both the UN and the Arab League. He is trying to solve an issue and he will use any ethically accepted method to make the members to his party Waltz for peace. The question validly remains what the invitees have in mind. If we see the evidence through time and space that Russia cares about Russia, plain and simple, then their acts are not wrong, or not wanted, yet when the dance is not about the dance but about trademarking the fashion they wear, then who are the real dancers and what do they stand for?

Russia is not alone. We could ask somewhat similar questions of the USA. The UK is out of reach as they started the parliament step. The result is not one they wanted, but they stood by it. It was an admirable step, but not the greatest moment in David Cameron’s career.

Does it matter?

It does, but for different reasons you could imagine. We are all getting in a world that is getting more and more complicated. Like the inefficient use by some managers to hang onto ‘bullet point statements‘ in their memo’s, we genome in an unrealistic way the issues in play. At times a 2000 word document cannot be tweeted in a 144 character statement; the unrealistic approach that this always works will mean that people judge on inaccurate and incomplete information. In case of the Middle East it is not one, but hundreds of documents on that size. A tweet will not get us there and at times we need a person to make the choices to keep the story minimised, clear and correctly complete. Here Lakhdar Brahimi has his work cut out.

This is where the current situation just gets murky. No matter how clean the presiding speaker is, we know that there are dancers like Russia in play. Doing the right thing for the wrong reasons still corrupts the idea, the notion and the act. What to do?

I do not know, but I do know that the talks will not just be about Syrian victims and Chemical weapons. It will have attached talks of Iranian nuclear power and a few more non-disclosed points of discussion.

What is an interesting development, which weirdly enough is not getting the level of exposure through the PRESS are the acts of King Abdullah II of Jordan and Pope Francis (the Bishop of Rome, in case you did not know) as they are trying to find solution through dialogue. Yes, I know that many others are in favour of this. Consider that Jordan is currently getting pounded on lack or resources as they deal with close to 1.5 million refugees. Still, His Royal Highness is not hiding behind others, or seeking an easy way out. No, he is hoping that dialogues will bring a solution. THAT is character of the highest level!

I would like that talks will solve is this issue, yet my sense of reality tells me it is no longer an option when two teams are so polarised. I am no standard to be based upon, but people like Pope Francis and King Abdullah II should be heralded for taking such a strong stance of principle, especially when we see what their stance is costing the Jordan government. Consider that we saw European nations back down lately for issues a lot less than that.

The world is a lot more complex for all players involved. We the people must accept this and we must accept the responsibility of knowing a lot more. If we do not, then we do not get to blame our representation and their choices for action, because we did not know. Ignorance is NOT a defence!

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August 2, 2013 · 04:22

Fighters to Syria

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

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

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

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

Is this a similar view?

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

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

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

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

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

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

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

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

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

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July 21, 2013 · 23:12

The law to hunt them down

Both Sky News and the Guardian come this Sunday with stories on how Prime Minister David Cameron is calling on web companies to block certain sexual child abuse searches.

That sounds nice in theory and I am all for hunting down these groups. Yet, that request is at least 10 years late and in all honesty, I reckon it is a massive waste of time and resources. How long until these perverts come up with ‘other’ search terms? We would even be allowing for some to get away scot free as they searched for “yummier candy” or whatever other code they would be using. The Judge would have to let these people go as they were truly looking for a place to dunk their bagels in jelly?

As stated, I am all for hunting these people down. Yet perhaps other means should be (should have been is a lot better) employed. Google had been so innovative in avoiding corporate taxation, are they not aiding the police (not just in the UK) hunting down these people? They have the hardware, the software, the expertise and more options on their shelves. In addition the PM should actually stop that gap which allows Google to only pay 0.0025% in taxation (but that is a story for another time).

No matter how quick we stop this gap of non-taxation. Google has in my view and strong belief a moral duty to train the police and other units in search and track knowledge (perhaps they are). They have no issues in teaching/aiding bosses to track their employees. Yet, hunting down criminals is not in their scope? (At http://business.time.com/2012/06/27/google-maps-now-helping-your-boss-track-your-every-move/). It was stated in the article that “the cost to workplace privacy would be serious“. Is that true? If you get paid by the hour, should you not be working? In the office, one is supposed to sit at their desk. There are always reasons why we need to go somewhere, yet we should be at our desks for a certain time. So it is easy and perfectly OK to track employees and we cannot track criminals? I get the issue that there might be some level of privacy in play for an employee (for example, his lunch break is his and his alone), but finding those hurting children are allowed protection so that they can hurt children? Such methods could aid the authorities in actually getting some protection to the children that needed it for a long time.

If we relate the options to track these child abusers to the boss tracking actions, we definitely have the technology to find these people, so what Is stopping us?

In addition, the legal side is also in play. If we consider the “Protection of Children Act 1978”

If we consider: “Section 1 (c) to have in his possession such indecent photographs [or pseudo-photographs], with a view to their being distributed or transferred digitally or shown by himself or others; or”

By adding three words we now let the issue no longer fall into the issue where the responsibility was, we now give pressure on the ISP to report this immediately. If not, they become part of the chain. Now, if we look at the defamation act, then we know there are issues, especially when we consider operators of content.

In Australia the Defamation Act 2005 (NSW) states:

32 Defence of innocent dissemination
(1) It is a defence to the publication of defamatory matter if the defendant proves that:
(a) the defendant published the matter merely in the capacity, or as an employee or agent, of a subordinate distributor, or a facilitator [or ISP] and
(b) the defendant neither knew, nor ought reasonably to have known, that the matter was defamatory, and
(c) the defendant’s lack of knowledge was not due to any negligence on the part of the defendant.

Here I added 5 words (those in bold), which could give additional levels of options to the claimants. It is nice to give certain services out for free, yet in that case, the facilitators will need to adjust their ‘terms of service’ to protect themselves and give aid in finding those using their services to further certain criminal goals. The reason to mention this is because when we look at the UK “Defamation Act 2013“, as narrated by Forbes we see the following (please read Forbes article as linked below).

The next part was in progress, when I detected this Forbes article (who had pretty much done what I was trying, at http://www.forbes.com/sites/ericgoldman/2013/05/09/uks-new-defamation-law-may-accelerate-the-death-of-anonymous-user-generated-content-internationally/)

It seems that the known issues of the ISP had been avoided here as well (an issue that had been in play for at least 8 years). There is a valid defence that  an ISP cannot monitor the massive flow of content, which is indeed a valid defence in my book, yet the cooperation required by the police to do their jobs is too often too slow or at times likely even completely lacking.

When we add ISP in the Australian case, then their lack of negligence would overturn their defence in court. So when we consider 32.1.d, then they will need to get active, creative and corrective really fast.

This translates to the UK defamation act by changing “5 Operators and/or facilitators of websites and/or virtual locations“; this would change the game immediately. Of course, prosecuting an ISP is not productive in the end, yet this part will give them the ‘negligence‘ label and as such, serious headway might be made in hunting down these child abusing criminals as the ISP is now seriously motivated to aid the police and find these criminals. The change would go further than those seeking materials. It would also give way to look at providers and mapping out these people far beyond the UK national borders. So as the map, with names, locations and acts will visibly grow, we might actually get the information the police needs.

I personally believe that law changes will get us a lot further then just blocking a search term.

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June 20, 2013 · 12:42

RBS of the Clan Goldman Sachs?

Well today the light shines a little brighter. As I was watching Sky News, I now see a stronger and more enthusiastic run to get these bankers under some kind of rational control. Will it work? Time will tell, however there is a start, and it might not take long until a strong voice could stem the tide of greed to a small extent.

We are however nowhere near a good solution. Mr Osborne (the Chancellor of the Exchequer) is about to take a page from a legally valid solution to divide the bank into 2 parts, a good and a bad bank. Yes, Mr Osborne, that will really help to take these billions of bad debt and add them to the tax payer’s burden! Not really a solution, is it?

To add other news moments that the UK economy is out of intensive care is not just wrong; it is a bad insight close to that of the Titanic playing chicken with an iceberg. No, I stand corrected. This decision is worse. You see, the Titanic had a few survivors; this approach might leave people alive, but destitute for a very long time.

So yes, there is a chance that the Royal Bank of Scotland will join Clan Goldman Sachs.

The idea of shares, making public and so on are ideas. I am not in favour of them, but perhaps Mr Osborne does not have a choice. You know, it is unfair for me to just complain, lay blame and not have a solution. What could be done is to keep the RBS nationalised, and remain an operating bank. Do a proper bank job by giving out small loans, do banking functions for those with jobs and create jobs. Also, the money that the RBS bank makes is used to pay off the debts, the bad loans and even create tax fortunes this way. Why not?

It is not like the banks at present are doing anywhere near a decent job.

The so called stated fact that the economy is in a better shape by stating: “Nothing better signals Britain’s move from rescue to recovery than the fact that we can start to plan for our exit from Government share ownership to private ownership.” is in my view horribly wrong. The fact that the UK is not in the red at present is just fortunate (and at less than 0.5%). The fact that most of Europe is down and there is no realistic view that this will improve within 18-24 months is not realistic. I read the claims that some made over the last two years. Good news was always bad news in the end and results had to be corrected downwards every single time. To rely on that a belief that the UK is now in a stage of recovery is in my humble opinion a case of really bad judgement.

How about playing it safe? Instead of quickly selling the good bank so that irresponsible banks can continue to endanger the lives of too many, hold on to it, make it stronger and get it into a shape where it is worth a lot more than it is now.

The current ‘noise’ that bankers are being chased for criminal charges are nice claims to make, yet the true culprits did what they did, and they never broke the law. Until the law changes, they are out of reach. The small fry we do get to prosecute will get nowhere near the punishment that is due. It is best reflected by Paul Moore, former head of Risk, HBOS. “The banking crises drove 100.000.000 people into poverty“. He is correct, what was done should be criminal and those involved require insane levels of punishment. Yet, as I reflected earlier, that will not happen. Lawyer Sidney Myers seems to be in agreement (or more precisely, I am in agreement with him). Mr Myers is not just a somebody in this field. As the head of Berwin, Leighton and Paisner this man wield a formidable legal cricket bat. It would make Colin Cowdrey instantly humble. Mr Sidney Myers is listed as one of the top 500 lawyers, this in a field that has over 120.000 practising lawyers, so we are in well informed top tier company.

To get a person convicted is near impossible. Getting the group convicted must proof all guilty, neither seems to be a realistic possibility at present. So we need to see a legal overhaul that changes the game, and selling of Lloyds and the RBS before that moment is in my humble opinion not a good idea. Sir George Mathewson, former CEO of the RBS has that same view (in regards to the legal prosecuting). He did however state an interesting line. “Where the information is made clear to the board and the shareholders” this comes to collected responsibility. The interesting part is what information? To get a clue on that, we should look at a book called ‘how to lie with statistics‘ written by Darrell Huff in 1954. It is a gem, an eye opener and it actually shows today’s problems. If we react to numbers and if numbers are ‘not incorrectly’ tweaked, then how is managed risk not anything less than misrepresented risk?

The bulk of data miners will look at profitability, but profitability of whom and how?

Uniting the views of Paul Moore and Darell Huff gives us part of this problem. Separate the data miner from the board of directors and we create a Star Chamber situation that lacks accountability for the simple reason that no laws can be proven to be broken. That danger, until countered gives reason for the now nationalised banks to remain as they are. SNS Reaal in the Netherlands is in that same scope. Until legal secure measures are firmly in place, protecting the taxpayer from irresponsible risks, other banks should not be allowed to continue, especially AFTER they move part of their failures into a bad bank.

The idea that the PM David Cameron has mentioned about selling the RBS at a loss is just not an option in my view. They should continue in the setting they are now, offering financial solutions to the UK citizens at lowest base +1% could over time turn the RBS and Lloyds into banks that are no longer in the red. Other banks have no reason and right to complain. They have been making customer services nearly impossible. To get a grip on that, take a look at The Netherlands where getting a mortgage reads like a tale no less imaginary then ‘the Hobbit’. As banks have been banking on higher levels of return on investments, smaller businesses and individuals suffered. They have no issue with credit cards as they charge 11-12%, however getting a mortgage seems to be a lot harder. So as customers come to the rescue of the RBS as they switch credit cards for 6-7% which will aid the government to get RBS back on their feet and even add some coinage into the treasury’s coffers (with a 1 trillion deficit), this could be a possible good solution. Are there any banks complaining? Well, that is the way the cookie crumbles. It is time for them to face the consequences of unadulterated greed.

The issue of holding bonuses for 10 years does sound nice in theory, however, how about appellant case HQ09X04007 and HQ09X05230. A case settled in the Court of Appeal by Lord Justice Elias and Lord Justice Beatson? A case where 104 members, were due their 50 million Euro in bonuses.

In that case I found this: “Bonus awards for all front and middle office employees who received a letter in December stating their provisional award, which was subject to Dresdner Kleinwort’s financial performance targets, will be cut by 90% pro rata to the stated provisional amount.”

However their contract had this little hidden gem “It is common ground that all the claimants, including the three whose employment agreements did not contain any provision with regard to payment of a discretionary bonus, Messrs Sacre, Honeywood and Daley, had a contractual entitlement to be considered for the award of a discretionary bonus.” (Source: Case note)

How soon will that case get quoted in another court case to get a bonus freed up? Some miscommunication through contracts where no one is accountable, yet the bonus is immediately payable? Another option could be that these senior members will start playing musical chairs with friendly banks, switching each year all protecting one another stopgapping large bonuses on an annual basis (in their favour of course).

So how long until we get some level of miscommunication going on? If we accept the journal of Ronald Green from 1993 ‘Shareholders as Stakeholders: Changing Metaphors of Corporate Governance‘ and if we accept that banks and financial institutions fall in that category, then their responsibility is to profit, not to accountability, which means that their acts will focus on non-accountability to endure ruling of profitability. The latter part would be my take on the works of Milton Friedman.

There is the crux. Until serious changes are made to separate the banks, the profit in regards to  stakeholders and shareholders, whilst increasing a banks social responsibility, the cut-throat business they now do and the taxpayer currently pays for will continue.

 

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June 8, 2013 · 14:01

Privacy and (fake) fears

It has been all over the news. The US government has access to your email and your details. It was quite the show to read this all yesterday and the issues this morning was set in a nothing less than A-level theatre play. A play that would make Robert Ludlum envious I might add.

The issue is that the US Government (NSA in this case) is reading your e-mails. They have been doing that for some time. Basically, it was the Patriot act that opened the (back) doors for them to get access to all this information. As they were dealing with data on a lower level in those days, their task was simple. Find Terrorists! Find those who attack America and deal with them. So readers, here is your fake fear! This is one moment where I agree with President Obama 100%. You cannot have 100% security and 100% privacy. Anyone claiming different is lying to you.

The NSA is not interested in you soliciting erotic acts from a recipient on the other side of the e-mail track. They are not interested in the deals you make offering a quick buck! So those in fear (roughly 99.8932353%) you have nothing to fear but fear itself. The part you are not afraid of is the part that SHOULD scare you. You see all that data that you ‘surrender’ to Facebook, Google, MySpace, and Friendster and so on. All THAT data you gave can be crunched, marketed and sold to companies, corporations and all who would buy them. THAT is an interesting part. That is the fear people need to have when they looked at the dangers that Dutch Equens represent (as reported in the earlier blog: ‘You might soon be sold by the banks!‘).

It is not just that part, it is the possibility that data miners offer as they combine data files in one coherent file that could be a personal ‘danger’ to you.

The NSA issues are not that. They need these abilities to fight the existing and growing threat called ‘the lone wolf terrorist’. These people are guided by sources like ‘Inspire’ magazine, which is created by AQAP (al-Qaeda in the Arabian Peninsula). It is however not that simple. The real lone wolves get their ‘guidance’ remotely from sources most do not know and all that under the eyes of the Intelligence Community. To have a grip on stopping these people, monitoring the internet is essential to keeping us the common people safe. If you think that reading mails was enough, then you are wrong. The further going plans by some to monitor the internet is going to be an essential part. Do not think that this is a fun exercise for those involved. It is pricey, it drains resources and it is never ending. As people move to the cloud the need to monitor upcoming dangers will only increase.

Most readers will have heard of the soldier killed in Woolwich UK. Home Secretary Theresa May was quoted when the mention came that this attack was not from a ‘Lone Wolf’ terrorist. I am not opposing this thought. Yet, it cannot be denied that magazines like Inspire might be central to these events. As such it is no wonder that GCHQ wants to peek over the shoulders of the NSA to see if dangers are hitting their small island (I meant the UK, for those who wonder).

There were additional issues that are growing on several grounds, which give weight to the need of monitoring and in all of these cases people like you and me are not an issue.

For most of you feeling fear of this, your fear is unwarranted. Your fear should be how Microsoft and Sony are very interested on squeezing your details out of you as they are preparing and implementing their Next Gen consoles. That will affect you a lot sooner than the security services ever will. (Blog: ‘Government ministers, be warned!‘)

It looks almost sanctimonious that people are so shouting at these government actions and after that spread their visions with pictures and reveal all they can (and sometimes with way too much info) using Shutterfly/Instagram and Facebook. When their identities are stolen they will whine that it is ALL the fault of the government on how their identity was not safe.

Seems almost laughable doesn’t it.

When we sit on the fence we do see that there is a responsibility to hold parties to account for what they do. In case of the NSA this is Judge Roger Vinson. So, yes, someone does take a look at what is done. When did you last hear a loud scream on what Facebook is doing with your details? How about never? Only when Facebook had certain plans involving Instagram did the inner demon of personal greed scream out stating that the pictures were not to be open for business. Again we see a show of double standards. Judge Roger Vinson, born in the state where the delicious Forest Reserve Bourbon is from (Kentucky). He is the Federal Judge for the state famous for Pina Colada and cool Mojito’s (Florida). He approved the data request that the NSA made. So, yes there is oversight on this. It is however not needed for foreign requests. Is that bad? We give it freely to Facebook, so why are they stopped from sharing that with the government. Are you having that drink yet?

The NSA, GCHQ, DSD, CSE and a few others need these data streams. They would like to prevent people who are eager to get other people blown up. For you and me to stand on ‘principle’ on one side and then we give away our identity to be marketed and spammed to commercial content is just way too weird.

The world is now visibly changing. It is in my mind a little frightful as we are soon to become part of something different. As the finance markets were not contained, and soon no longer can be contained ever, we see a move away from nations and nationalities. We are about to be reduced to a metadata tag. With an added weighting that is soon to be set to ‘useful’ or ‘waste’. This was not instigated by governments and not even by the intelligence community. It was instigated by corporations behind Social media; and as we openly surrendered our details we are now placed in boxes where we can be approached. When we have moved through all the boxes and we are no longer an asset in any box we will be given the ‘waste’ tag. Then what?

These are my words, but funnily enough I was not the first one to mention this. In the Netherlands there was a New-Age entrepreneur called Luc Sala. Even from the late 80’s he evangelized the dangers of the groups “have” and “have not” and how we were allowing ourselves to be placed in these boxes. I wonder if he ever realised that not only was he correct, but that it could even fade national borders? Consider what you heard over the last months, what we will see in the next 13 months. Prime Minister David Cameron was strong about keeping the UK identity safe, to protect it. He was not willing to step out of the EU for this. That step is now being sought after by UKIP and their leader Nigel Farage.

How are these related? This is a valid question that is forming in your mind. And I have been fighting with these thoughts and especially evidence around this. Without evidence all this is nothing more than a bad level of Conspiracy Theory. You see, all these messages we read in the last few days and the next week are in my mind a smokescreen to some level. We are all so shouting about privacy. Yet, who was up in arms when MySpace started to sell their data in 2010. (Source: http://www.pcworld.com/article/191716/myspace_selling_user_data.html).

Did you stop to think about your data on Facebook? Did you think ‘whatever’? So what other ‘evidence’ is there? In that case I point to several blogs I wrote, but more important you should look at more reputable sources like the Guardian and the Wall Street Times, where we faced stories in regards to the pay outs by all towards Greece, Cyprus and other nations to keep the economy ‘alive’. Whilst now we read how the IMF made errors. How a train line sucks up over 7 billion and is presently still not operational in the way it should be. This is a time and place where other nations are now giving aid as budgets are not met in various degrees by nearly all EU nations. So is it such a far stretch to see National borders fade as these issues are ‘resolved’ (read: ‘put on hold’) by group driven options. All this happens whilst we hear ‘voices’ that seem less and less aware of consequences or claim ignorance and error afterwards.

For this train of thought we need to see three parts

In the first part there is last year when this was quoted “The slight uptick is largely due to Europe, which is expected to return to very slow growth of 0.3 percent after the -0.2 percent contraction in 2012” (Source: http://www.conference-board.org/data/globaloutlook.cfm). Yet the guardian in two articles where the 2012 version stated in: http://www.guardian.co.uk/world/2012/nov/07/eurozone-growth-next-year-ec the following “with the 17-nation Eurozone eking out expansion of just 0.1% in 2013”. However 6 months later we read in: http://www.guardian.co.uk/business/2013/jun/06/ecb-eurozone-recession-deepen, where it states “European Central Bank says the Eurozone economy will shrink by 0.6% in 2013 as it considers unconventional policies to kick-start growth”. Numbers change and get adjusted, but the game can only be one of profit by those who have the right numbers (read the better data source). This game is played and replayed, again and again. This has bearing on all the privacy issue in the form of the collected data these predictors require. If the power of voicing the future is based upon data then your privacy is a thorn in the eyes of commerce as they do react to data, but whose data and created how? So as companies are making less, as economic values go down, other paths to revenue must be found and this does have bearing on your privacy, as you are data. This means you are commercial currency, not government currency as such.

This is the other side of data. Many corporations decided to ‘store’ their backup data in some High-Tech solution off-site facility, not unlike the hosting solution Peer1. Peer1 is a Canadian corporation with hosting locations in for example San Antonio (when they acquired ServerBeach). That is corporate data and as such there is an issue in this place. There had been soft voices of concern in those early days on who gets to access these data servers. American linked companies implementing off-site storage options in America from all over their European locations. Was local management realising that they gave their customer base and (financial) details to US insight?

There is NO; I say again NO evidence that these data files were ever ‘violated’ for commercial gain. If we consider the dangers of greed and in the light of what we read earlier, can we be certain that this did not happen, or even whether this is not likely to happen in the near future?

It had been clear that parties like the NSA had access. There is however a side we do need to take proper heed of. If they have access, then who else has access? From corporate documents from these hosts, corporations would have likely read how impossible access was, and how they never give out access. If that part was shown to be ‘violated’, then what other dangers lurk that these companies did not expect? (In this concept violated does not mean a legal violation as the data storage company would have been adhering to their government rules, yet the fact that corporations might not know this is a question for many and as such legal questions should be asked).

So think again, as social media is in their right to sell the data they have in some shape and that it is the price you paid for all these ‘free’ abilities that these places give you. Most do not worry, but then worry about information the government has/looks in to.

For private individuals all this is simply a fake fear.

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May 21, 2013 · 00:54

Values of a debatable side

OK, it is 23:30 at the moment and I am finding out the hard way that life in a hospital as a patient can be different from your daily life in the corporate world with fluent internet and then some, go figure!
So when I initially listened last weekend to a few newscasts in regards to a team of devoted UK MP’s I was not completely on the ball. Yes, they were having a go at the dude from Google, but alas, it was not the price fight we might have seen when some have a go at Lawrence Ellison, and the MP’s go home crying like Charlie Brown after an encounter with Lucy.

So there they are, Amazon, Google and their margins of non-taxation. Those MP’s dressed like bankers and charging like Don Quixote.
It is almost like a new disney ‘fairy-tail’. The pot calling the kettle brokered. Is it not a little on the hypocritical side, that AFTER they bail out RBS, when RBS reports a 2 billion loss, that personal ‘acquaintances’ still go home with a bonus total of almost 400 million? That was not stopped was it?
But Amazon and Google, after they did everything legal (not unlike the bankers of a fat-cat persuasion), and used exactly those correct steps in their order processing that now certain MP’s cry Havoc and slip-up the dog of stores.

This situation does bring back memories of my previous blog where I accuse members of the EU thinking too local in certain cases, this tax front reads the same way. Now, if you think that I will advocate one version of taxation for the EU, then think again. That is just not realistic! That is like putting 22 toddlers in one room, asking them to all select the same piece of chocolate, good luck with that one!
Yet, the idea to streamline certain forms of taxation to ease businesses in an optional situation where web stores will have equal rules, rights and burdens is not that bad. Of course not all EU nations have the same powerful internet, so more issues will arise.

In the end, is it about web stores and taxations? Let’s face it, a political grilling that was senseless and pointless to begin with? And let us not forget, no legal transgressions seem to have been made (if I am incorrect, then this blog WILL be updated). It is also interesting that the chair person of the committee Margaret Hodge, and her family connection to Stemcor seems to be in the same class of fishing pond. How revealing! What was that about a pot and kettle I mentioned earlier? By the way a special thanks to Helia Ibrahimi of the Telegraph who had several of these facts before I did (4G in a hospital is not that realistic, hence my delays).

Yes, it seems that a elevated level of lesser taxation does exist, like an additional income support class for billionaires. Hoo-de-la-lay, as Prince John would say (Copyright: Disney).

So looking at these issues, and these facts, then what is this really about? Will this be the kick-off for a ‘simpler’ tax system? (like billionaires do not get enough deductibles as is). Is this about uniting into one tax system? The latter part would be a nice idea, however with many EU nations in desperate shape to get revenue, not realistic. There is also the slight humorous thought of PM Cameron calling Dublin asking them to do him a favour and not process Google’s non taxable issues there. What are the odds that Irish laughter will reach the shores of Sydney? #JustSaying

Make no mistake, there is more going on here. Do not be fooled to think that this is just visibility. The honourable Margaret Hodge for Barking is one clever cookie. She has been around for a long time and when it comes to the disciples of Machiavelli, she is up there with the league players, which beckons the thought what is this the start of?
The only part that comes to mind is that this is a two edged sword. On one side this is only partially about the tax lessening that Google, Amazon, a few others and the family firm (Stemcor) are enjoying. This might be in one part, a nice little jab to raise the topic of raised taxation during the G8. Consider the issues that the EU needs revenue, now consider that 1% of something remains better then nothing, and that plays nice to the Stemcor business family too, All these EU items play in her/labours favour. If David Cameron does nothing, he will look weak, any act by the PM will economically hit back and gives chance for an overwhelming victory for labour next election. The UKIP issues do not help much either, but at least in that part they are not on the side of labour.

Still, whatever pressure is applied to increase the billionaires tax bill, Westminster must be careful not to be too harsh with their ‘scare’ tactics. Scotland is only 725 km to the North and Stemcor already has an office there.

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May 11, 2013 · 05:06

Wanna buy some Junk (stocks)?

OK! I admit that I am slightly over the boil at present. Not only have we seen several banks with their ‘why would I care what happens to others’ attitude, now we see the message that Co-op bank has now ‘ascended’ to the status of Junk!

Several things are happening, yet, let us take a few steps back, so you can see why this upsets me so. The year was 2009; Britannia (building society) gets added to the Co-op bank group. This happens around the same time SNS Reaal had a property finance group dwindle its value by a quarter of a billion Euro’s, and that was not a bad day for them. 2010 would then become the massive body blow to the SNS as their property group would increase its 2009 damage by 300%. So, at this point, is there anyone out there not wondering why this continued for 3 years?

Whilst all these property issues were happening all over on the EU side, the Co-op bank thought it was a good idea to continue in their footsteps? Consider the issues, which are NOW stated as issues, must have been known then too.
That in itself means that more than just a small investigation needs to take place. There is every notion that the involved parties require investigation. If we see the waves continuing from 2009 onwards, we see a wave of mergers, left right and centre with a shifting of ownerships and a shifting of losses over and over again. At the middle is a small group of people who seem to ‘make’ their quota and getting a nice 7 figure commission in the process. Poor Prime Minister Cameron was admitting defeat in the papers at that time. Whilst well over seven billion pounds in bonuses were granted to less than 3000 people. So in this age the noble art of thief, burglar, prowler and cut-throat is gone. Instead, some become bankers, you get the idea.

So, we saw the Britannia merger in 2009. The consequence was that Co-op acquired a company (The Britannia) ‘worth’ 35 Billion, yet, when we look at the value of Co-op, those numbers seem to be completely off the wall. Can anyone explain to me how a bank, who in their financial results of 2008, stating an operating result of 85 Million, with 64 Million of profit before taxation sucks up a company with a stated worth of 35 BILLION? No one seems to be asking the questions many should be asking. Now, as stated before, I am no economist and my degrees do not include economy, yet the Co-op/Britannia combination makes as much sense as me walking into IBM HQ, walking up to Ginni Rometty’s office asking her ‘How much for just the company?’, paying her for IBM, take over her office and have it redecorated. And trust me when I say that her weekly allowance is a lot higher than my pre-tax annual income.

So, as this happened, no one seems to be asking the tough questions. In the meantime to the next time-slice, the following issues occur. Our trusty Dutch nationalised SNS, now values at minus 127 Million and its property market is now reported at minus 600 million Euro. At this time, alarms should have been singing, ringing and clinging on many levels, not just at Co-op banking group. For those thinking that they are just separate banks then I would state that this is not entirely accurate. Consider that RBS took part of ABN AMRO (former one of the big four banks of the Netherlands). In the time (pre purchase of Britannia), Royal Bank of Scotland Group Plc, Lloyds TSB and HBOS Plc needed a massive bailout by the UK government. Soon thereafter Co-op suddenly goes fishing for a great White, using nothing more than a Dinghy and a $9 bamboo fishing rod?

In that same period Co-op is involved with the purchase and annexation (to coin a phrase) of Somerfield stores. It was reported to have a net income of just more than 220 million pound a year, yet, it was purchased for a 1.5 billion pound. That part makes decent sense as the net profit is a little over 10% of the purchase value. Yet, in light of Britannia and other events taking place, I add some serious question marks with these methods of vulture growth through acquisitions. I have seen this happen over the decades, and overall it rarely turns out well. This story turns that way as we see the Co-op food group (name after the merge of Somerfield stores) had reported in 2011 (as stated by The Guardian on 25th August 2011) a 21% fall of profits. Suddenly, the 220 million pound profit shrinks and looks less appealing. The Guardian in the same article also reported: “The Company has committed to investing £2bn in the business over three years, with £280m spent in the period.”

So the initial spending outstretches a full year of profits, with investments stretching beyond the 130% of the purchased value of the food stores. With refitted shops, additional refitting and new shops, the total number of shops seem to go beyond 550 stores. This is happening at times when caution is the only way to go forward.

The additional cost of getting these systems to run and align in an infrastructure would require massive amounts of resources. That part became clear if we look at the story from Computer World (http://www.computerworlduk.com/news/applications/17614/updated-co-operative-bank-losing-customers-through-system-problems/). This story is set to the Bank itself, yet the issues of so many sides and so many systems, and therefore the enlarged infrastructure required is not a relief of costs, but a pressure added to it.

Another side of pressure was displayed by Reuters (http://uk.reuters.com/article/2013/02/27/uk-cooperativebank-lloyds-idUKBRE91Q00E20130227). On the 27th of February this year it was stated that Co-op was somewhat short on cash. They were 1 billion short. (oh, let me get my wallet! Duh!) This seems to be the major reason that the addition of 632 branches of the Lloyd’s Banking group could not be purchased.

These facts are more than worrying. The vulture acquisition game is worse than a game of Texas Hold’em Poker. First there is the fact that the board of directors is gambling with other people’s money, the second part is that the circle of damage increases with each acquisition. Consider that the UK only has a 0.3% economic gain at present and that the economy is extremely fragile for now. Allowing these mergers to continue until a solid block of stability is gained should be disallowed on several levels and not just with co-op. Until the economy bounces back and the costs are more stable, this bank should clearly be placed under scrutiny of the most conservative nature.

It is said that the Co-op banking group consists of almost 125.000 employees. Now consider that any hardship hits this group. A thought that is not too unrealistic, especially as they are on shaky grounds for now. I am not just talking about their Moody status, to which their response was on May 11th 2013 as ‘Disappointing’. I am talking about infrastructure issues, weather related issues and any issues that will drag the rest down if additional write downs will be required to the property group from the Britannia acquisition (consider what happened to SNS Reaal in the Netherlands), a mere 5% write down will come down to over 1 Billion, whilst their cash reserves is already 1 Billion too low. So if that result in shut-downs and lay-offs, then a 10% loss of staff is not unrealistic, which means another 12,000 will be out of a job. That must be prevented at all cost. Such damage could push the UK 0.3% increase down to a lower than 0.1% decrease soon thereafter. In addition, those cut downs will hurt their non-aligned infrastructure even more and that might even start a snowball effect on people and infrastructures. I admit that the previous paragraph is all speculations on my side. I have however seen these kinds of reorganisations and crushing results first hand. I had faced them when the economy was good, under current conditions; these events are a nightmare to consider.

Is there any good news here? Well, I feel that I am not that optimistic on the statements they made, yet, overall Co-op could be in a worse place. The only proper solution for them in my mind is to dig in and weather the storm for now. Getting by the next 2 years is more important than allowing one rash acquisition to endanger it all. You will wonder about my evidence?

That is a fair question!

Many businesses are in a bad shape, and there is every chance that some will fail. Now consider the Property acquisition (Britannia). No matter how high their assets are set. Part of their acquired branch was commercial lending and mortgages. Last December Reuters quoted this, a real issue taking in regards the high pressure on lacking stability funds “At this rate it will take another decade to return to normal – and I’m not sure there is much anyone can do about it.”

So increasing more pressure could in the end result in the taxpayer getting a hefty addition to the outstanding national debt. A national debt, that is currently in excess of 1 Trillion Pounds.

So, from my point of view it is important to consider the story we saw recently in the Netherlands. The SNS Reaal board counted on Government bail-outs as they regarded themselves too big to fail. We need to make sure and make it clear that the Co-op banking group is not allowed to be this arrogant, or allowed such a way to a bail-out.

 

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May 4, 2013 · 15:59

UKIP or U.K.I.P? (Ur Kiddin’ I Presume?)

First let me start by stating my ‘allegiance’. I for the most am a conservative in mind. I used to be Labour/Liberal Democrat in past, but like all people, over time my thoughts and ideas changed like they change with most people. And as most, we want to support the team that looks out for us, and is closest to our ideals. We often keep it in that order of importance.

The issues are not with the parties, they, for the most did nothing wrong to make me change my mind. They had priorities as any good party would have, and as they change I felt less with one and more with the other party.

So why, from Australia is this part on UKIP coming? Well, I grew up in Europe and I spend most of my life there. Perhaps at times I still miss being in London, but that would apply to anyone who has been to London. Only the dead do not miss London and even that might be debatable. So as I saw the news this morning on how UKIP made some staggering victories from the conservatives I started to ponder it all. So this is where I am at present.

What do most know about UKIP? We saw some people lash out against them as they lash out against most opponents they are worried about. Then there was (too) little from UKIP and of course the votes and those who flocked towards them in droves.

When you look online, there are heaps of reviews. The Australian wrote ‘Send in the UKIP Clowns’, ‘the anti-immigration UK independence party’ and a few other less than flattering headers.

So taking a look at their site at http://www.UKIP.org had several papers that could be read, downloaded and or printed. It seems that they have information that is ready for all. One of the quotes that was on page 2 of their manifesto was “On January 1st 2014, The UK will open its door to unlimited numbers of people from Romania and Bulgaria”.

In the current economic and financial climate that makes entire Europe suffer, this message would scare plenty of people in the UK. There is even a quote from Ed Miliband MP, leader of the labour party in there. Yes, there is a simple message. So, why am I interested?

From my view many Commonwealth nations are connected. Even if Australia has a strong mining community (a force our own PM seems to be happy to break into suffering little parts), we are connected with the UK. If your mother was in danger, would you NOT come to her rescue? I think that we will always come to the aid of England, even when they lack Cricket skills ;-).

The message from UKIP remains simple, yet life is not that simple, but it ought to be. This is why Mr Cameron is now in a situation where he has to pick up the pieces. I will go one step further, even if the press was not willing (or able) to make it. If the current standing is not rectified fast, the conservatives might find themselves in less than a minority position, they will end in a position that will take multiple government terms to rectify.

So let us take a look at these issues that gave strength to the UKIP.

Open immigration from Romania and Bulgaria. Open immigration is always an issue for any nation that is in a much better place than the nations where immigrants come from. Yet, these two are not in any good state, so if those people have a chance of a much better life they will come. Yet, in support, the Netherlands has been dealing with massive scaled rental allowance fraud from Bulgarian gangs. The Dutch information program ‘Brandpunt’ (= flashpoint) even showed how organised bus trips from Bulgaria exist, just to start this method of fraud. One website even mentioned “Bulgaarse televise zendt cursussen ‘Hoe misbruik te maken van het Nederlandse systeem'” (=Bulgarian television transmits courses on ‘how to abuse the Dutch system’).

In the current climate this is what the UK might have to look forward to in one way or another. So, when we see UKIP announcing that they want to get out of the EU in the current climate, many people listen.

Is UKIP correct? This is where my shoes become a little tight for comfort. Life and politics are not that simple. No matter how much we would like it to be, the UK is currently in a 1 trillion deficit issue. It needs an increased economy and it needs export to keep it all real, yet the prospect of losing a 0.3% economical increase (achieved by the conservatives) is not likely to survive after the open border policy starts next January. There is another reality that does not bode well for Mr Cameron either. Many Nations in Europe have no real grip on their budgets at present. Germany seems to be the only one on par for now. Even the UK has a problem, but that is an UK issue. As they remain in the EU, they also inherit the issues of Italy, Greece, Spain and Cyprus. Each of these 4 are now loudly protesting in a state of anti-Austerity and as such, should their governments be overturned, then the chance of them cleaning up their own mess is not likely to happen any day soon. UKIP wants to be away from the EU when that happens. The reality is that the brunt of those blows would push the Netherlands, Belgium and France on their financial knees as well. Then what?

So even though Mr Cameron is right that life is complex, the appeal that Nigel Farage wants to do an Alexander the Great and cut the Gordian knot is not that far-fetched and is starting to appeal to a much wider audience. There is even additional support as the Netherlands did not get their budget in order and now gets a one year extension. In addition, their own labour party is entering a state of possible disarray as its members oppose a plan earlier approved in a coalition deal with the VVD (Dutch Liberal party). In this situation to get certain deals, the Dutch Labour party had to accept the standing that the Dutch Liberals want a harsher expulsion policy for illegal and criminal immigrants. To make this coalition work Labour had to go along with this to get some of their own agenda points to work. Now the party members want to move away from the Liberal stance on immigration (as the Labour mindset was never on par with that) and MP Samson was unwilling to do this. He had a standing agreement and he wants to keep his word. He also warned that pushing this would come at a cost for labour. Labour would have to hand over something else and even in the short run this would be likely an expensive change for the Labour agenda. So even though this is currently being talked about, it is clear that a crises point could come. In addition, there is no indication that the Dutch economy is changing for the better. There was mention of 0.6% of shrinking of the Dutch economy. In case you were wondering why this issue matters, it does! (Read on to learn why)
You see, if the Dutch economy gets any worse it will soon go towards a situation France and Italy are in (with a lot less deficit). Consider these nations nearly all with an overall average unemployment rate of 12.1%. These people will seek solutions and are very willing to cross borders for a better option. So, the fear that UKIP propagates is a real one.

In addition, the Gordian knot will have several benefits in these regards, but what is the downfall? There is the reality that the response from the Eurozone might lean towards a preference choice in business partners and removing the UK from the top of that list as/if they move out of the EU. It comes with the ‘we take care of our own and ours first’ taking the UK out of that equation. That is a reality to face too.

Does one outweigh the other? I feel certain that UKIP made no real investigation into that part at present. The question becomes what is done after they get the votes, and when they grow large(r), will they be able to provide not just ‘answers’ but also come up with solutions? The latter might be an issue as Nigel Farage stated on Sky News on May 3rd that a reshuffle was needed as they grew more than anticipated. That statement is fair enough when we see that thus far they gained 139 seats. It is a massive victory indeed.

Yet if there is another side then it can be found in their manifesto on page 4.

  • Protecting the greenbelt – opposing wind farms and HS2.

If the UK is to move forward then a proper energy policy is needed. They could consider more nuclear power, yet in the end, alternative fuel will be the future. Considering that the UK gets more wind daily then an average flying jet turbine, wind farms need to remain an option. In addition, if the UK will opt out of the EU, things will get more expensive in the short run, perhaps in the long run too. A strong energy policy would be paramount to keep the cost for the average citizen down and moving away from wind farms as an option seems less like a good idea.

Next on the list are 4 of the points mentioned.

  • Tax should be as low as possible.
  • Cracking down on crime and anti-social behaviour.
  • More police on the streets.
  • Cutting council executives and managers, not front-line services.

These issues are nice to hear, just like the quote we see in a fortune cookie. The tax statement is nice, but will it change? As ‘low as possible’ is just like ‘as soon as possible’, if the second one could mean ‘never’ then the first one could remain ‘too high’. There is actually more to this. Cracking down on crime is something the police have always done. Could more be done? Sure! There is however the issue that a budget needs to be kept and the UK has its own Austerity measures to consider as the 1 trillion deficits is not going away any day soon. This is where the third statement comes. Sure more police on the street sounds nice, but there is an infrastructure. Adding to the police force is nice, but with what money? The police forces have been bled dry and cut to ‘too little’ and not only in the UK. So if they tamper with the infrastructure to keep the promise of more police in the street the result is likely to be counter-productive down the line, then what will UKIP do?

So you see, they talk to the public, and tell them what to hear, but will it solve anything? This part is the debatable one. Yet, down the line, we must admit to govern one must be in office, and they did get into the office and now they must prove it.

I will not join the queue where they are labelled as fruit cakes and such. Mr Cameron is right that they will become a party to be reckoned with. The interesting part is how this will play out. The old duo Clegg-Miliband is now a lot less likely to survive, that part Mr Nigel Farage did achieve. What will Labour do next is the question. They are still the biggest for now. If they are to survive then they must align. It is unlikely they will find themselves with the Tories, yet it is either that, or their new option UKIP.

And here is where we see exactly the issue that Dutch Labour and Liberals are having (PVDA/VVD). What items are given and what are taken and what happens when the MP’s strike deals their constituents will not agree with? A British political sciences student in the late 90’s once told me “Coalition cabinets are the most entertaining, volatile and corrupt forms of governments”. I thought that his point of view made a lot of sense. The UK is about to join those ranks as they need to form coalitions at both sides of the isles. Will it be about the people or the MP’s and their futures? Time will tell but there is clarity in no uncertain terms. Those who did not give clear explanations of the why (as it was too complex) are now in a state where they must redraw lines and re-educate the masses as they figure out what to do next to get their seats back.

So the title ‘You’re Kidding I presume?’ Is very correct, yet who is stating that line, and whom are they stating it to is left in the open as both sides could claim that title and both side should be able to answer it.

 

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