Tag Archives: Deutsche Bank

The excuse not mentioned

Have you ever considered the times you used the expression ‘not to mention‘? It is an interesting phrase and it is overwhelmingly used to give rise to excuses or reasons of a listing. Yet the act of not mentioning issues has a much larger reach. This gets us to the usage of Embargo, now in the true spirit of embargo is needed to not give rise to dangers. I have seen my shares of embargoes all over the world, I have never been personally privy to one, but I understand and accept the reason. The most accepted form is a ‘requirement by a government agency that the information or news provided is not be published until a certain date or certain conditions have been met‘, it makes sense that the news of drug deals are not broken until the undercover agent is out of harm’s way, the famous raid on Entebbe (Operation Entebbe), had to make certain that in those days spotters would not voice what they saw whilst the plane was in flight; fortunately for the Israeli Defence Force (IDF) they have an above average security in place, so not much chance of that, yet with the 1977 Dutch train hijacking that issue was very much an issue, especially as on that very same day there was a touristic event (I believe it was by the AVRO), that took us to almost exactly where the train was, whilst that morning Dutch Marines were ordered to settle the matter. Good luck with an embargo at that point. If there was a smartphone in those days, the event might have gone very differently. In that same trend, the events that are on route involving the Credit Agricole would prefer some kind of embargo, but governments cannot play that card, so some players (like some banks) will have to rely on other means, and as we are only drip-fed issues on the Russia Money-Laundering Scandal, we will have to await the media friends of outlets, to see what is allowed to be released.

Yes, you heard it correctly, what some people allow to be revealed to you all. They would hide behind optionally claimed issues like: “We ran out of time“, “there were other pressing matters“, or my favourite “We did not think it was interesting“, it is in that light that media enforced embargoes take another turn.

Is it not interesting that the Boston globe gives us: ‘US can’t keep turning a blind eye to Saudi Arabia’s murderous prince‘, yet based on what evidence? That UN essay is not the evidence we should regard as actual evidence. We see in addition Al Jazeera give us: ‘UN again blacklists Saudi-led forces for Yemen child killings‘, yet in that light in opposition the news is not giving us: ‘Yemen’s Houthi rebels attack food factory in Hodeidah‘, which was reported 12 hours ago.

So in a place where famine is a direct threat to hundreds of thousands, the Houthi terrorists are aiming for civilian population and destroying places that produce milk and fruit products (juices, cheese, yogurt), essential food for the people of Yemen and the Houthi forces are shelling that place as well as residential areas of Hodeidah city last Saturday. Yet the western news to the largest extent did not give us any of that, did they?

The fact that we see news avoided to the largest degree is becoming an issue, the people are not being informed on what is going on, and when we do get informed, there is a veil that depicts the Kingdom of Saudi Arabia (as well as the UAE) as: ‘the big nasty’, whilst the actions of Houthi terrorists as well as the facilitation by Iran is not mentioned at all, and this has been going on for months now. When we consider one source (Times of Israel, at https://www.timesofisrael.com/yemeni-houthi-rebels-long-range-arsenal-grows-lethal/) we see: “In June alone, the Iran-aligned Shiite Houthis launched at least 20 missile and drone attacks on the oil-rich kingdom, Iran’s regional foe, some resulting in casualties and damage“, in addition we see: “A Yemeni army retired brigadier, Jamil al-Mamari, believes the “Houthis are not capable of manufacturing missiles in Yemen… They are only capable of assembling and modification.”“, the growing evidence from several sources on the incapability of Yemen to produce Iranian hardware is ignored by the Western Media all over the place, including the bigger accusation: “Experts rule out the possibility that Houthis may have modified these arms on their own“, a simple deduction that could have been made by a 4th year engineering undergrad student, and yes, the media ignores this, we are sold a bag of goods through business driven embargo’s, just like the issues seen in Syria, the people are left for dead and illuminating merely part of the equation is making the western media guilty of a few facts, even subverting the old premise: ‘the people have a right to know‘ into: ‘We are guided by some to tell you what you optionally need to know‘.

I wonder what will happen when I decide to give out the messages, mails, events and connections that are in existence between people like Raphaël Appert and Daniel Epron, with all the media links they have, and they have a lot. So when we look at some of the Russia Money-Laundering Scandal that have been known to some extent and all the papers that decided not to give visibility to that part, what excuse will we be told? There was a revolutionary Apple message that bumped the revelation? Or perhaps the economic plan of President Macron took all the space available? I do not know, I am merely speculating, but the lack of visibility on some of these news events all over the place, are now a much larger concern. When we look at the papers that actually took space and time to look into the Iranian Qasef-1 missiles and their targets, how many papers took time to look into that? The list (the lack of papers there) will surprise you. Oh and the excuse that it was merely a copy of the Iranian Ababil-2 drone will not work, I checked for both. In that same air, when searching for the Russian Money Laundering Scandal, we see the mentions of the Deutsche Bank, but several others like for example Credit Agricole, they did not make it to the news, not in the Guardian and not in several other papers. Revelations that are filtered are not revelations; it is merely corporate forms of censoring and it is my speculation that we get more and more of that as the year progresses.

As I have state in the past, I believe that news is filtered for publication as long as it is filtered through the Shareholder filter, the stake holder filter and the advertiser filter. What is left is ranked according to emotional ability to flame and push people. When we look at Turkish Journalists (in light of the large amount of them in prison) in the google News section we get: ‘About 163,000 results‘ (for all those journalists mind you), yet when we see: ‘About 725,000 results‘, which is in the same section, it is about Jamal Khashoggi, so we see that not all journalists are equal, not by a long shot (even as dozens of Journalists have been murdered in Turkey). These are all elements that give a view to the filtering of information that we get, and when you consider the excuse that ‘there was no space’ consider that there is no space limit to online news. And for the most it is not about resources, it is about that they consider we should know.

When we search news for ‘Hodeidah‘ in the last 24 hours we get 4 hits, two on the Shelling of the Dairy factory (Xinhua and Al Ain) one Blog and one by Yemen Online on ‘The opening up of Hodeidah port to ensure a better flow of humanitarian aid‘, that’s it, nothing more according the Google Search, so any excuse that the West is giving us some level of balanced news is a joke, and at present a bad one at that.

 

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Just like TV

There will be a discussion soon enough whether TV gave the idea to fund extremism and terrorism. I am referring to Blacklist, an episode from season 3 called “Arioch Cain“. In this episode someone decides to use crowdsourcing to get the main character Elizabeth Keen assassinated and soon enough, through crowdsourcing a price of over $700,000 is on her head. That amount tends to attract all kinds of enthusiasts, especially as hardware relying on ammunition in the US is dirt cheap.

This gets us to two articles in the independent ‘British far-right extremists being funded by international networks, report reveals‘ less than an hour ago (at https://www.independent.co.uk/news/uk/home-news/far-right-extremism-terrorism-tommy-robinson-funding-international-a8937116.html), as well as ‘How crowd funding helps far-right extremism spread round the world‘ also less than an hour ago, but the same writer no less (at https://www.independent.co.uk/news/uk/home-news/far-right-extremism-crowdfunding-tommy-robinson-a8937311.html). The entire setting is not unexpected. I foresaw this to some extent in 2013 when I reported a certain stage where Facebook games had their own chat rooms and some chat rooms started to change languages. Now, I have no idea what was discussed, or even that anything nefarious was discussed, but the fact that some of these chat groups were private and the fact that they were close to 99% certain not monitored would give certain kind of people options, the fact that one could fund another through pay pal was a second stage in all this. The consideration that the episode was aired almost 4 years ago is also a factor, in 4 years people try alternatives and both the extremist as well as the terrorist population are always willing to try something that cannot really be monitored, so there.

The first article gives us: “Analysts at the Royal United Services Institute (Rusi) found that despite an increase in extreme right-wing attacks, efforts to disrupt terrorist financing were still focused on Islamists.

A report said a lack of work to find the source of money flows and stop them had allowed prolific extremists and groups to build huge platforms in the UK, US and Europe” as well as “the funds gathered allowed fringe groups to expand their reach with potentially deadly effect” cannot be ignored, and here we have the intersection. although let’s be clear I was looking at one source for very different reasons, I am now quoting: “I have had to clean up the mess of others for well over a decade and now it is time to give those people the exposure they deserve (my findings regarding Credit Agricole will have to wait for a few more days)“, Which I wrote in ‘The Scott Pilgrim of Technology‘ (at https://lawlordtobe.com/2019/05/23/the-scott-pilgrim-of-technology/), it is indirectly linked as Rusi (at https://rusi.org/sites/default/files/201606_whr_3_16_countering_proliferation_finance_v2_0.pdf) gives us “Several other banks have faced smaller fines by US regulators for similar offences, ranging in the hundreds of millions of dollars; they include HSBC, Deutsche Bank, Standard Chartered, Barclays and Crédit Agricole.

I was looking deeper into Omani credit notes which were handed to Iran for goods, but at the current oil prices (the price then) the numbers were not adding up, it was like looking at 10 tankers being paid forward, or someone sold oil at $230 a barrel, which seems even less likely and at trade prices there is no tanker large enough to facilitate the oil. As I was aware and familiar with bills of lading, parts did not add up and I decided to dig deeper, only to find that I had forgotten to save the links and that virtual location was suddenly gone the next morning (that will teach ME being stupid). Somehow one of the links seemingly implied Credit Agricole (a non verifiable number) and that is where I was last week, now I see the Rusi paper and I wonder what their servers could teach me. It was by the way not a new issue for me, I looked into parts of this in June 2018 when I wrote: ‘The Iranian funds play‘ (at https://lawlordtobe.com/2018/06/07/the-iranian-funds-play/).

The paper also gives us on page 13: “Financial institutions rely on governments to be explicit about their expectations and to provide guidance on how best to meet these expectations“, which is not really realistic when they rely on ambiguity, but the setting is fair and as such we also see the failed setting to deal with extreme right players. I personally believe that when we consider: “FIs are thus faced with a dilemma, in that many wish to meet US expectations in order to avoid penalties, but do not enjoy advice or assistance from their home governments to enable them to direct their efforts appropriately. Most are largely left to determine on their own how to address risks associated with CPF or related sanctions, other than simply screening against UN sanctions lists“, I believe that some of the players considered the benefit of using players like Oman to set the stage of both deniability and facilitation via a fourth person (as the bank was the third piggie in the middle), they get none of the heat and all of the bonus that way. I believed that some French players found an optional resolution to keep their vineyards safe and well-funded. It works for me; I would love to retire in the Cognac area making my own grape juice ambrosia (aka: Jus de raisin maison). The fact that this is all about billions in the other setting, my 1% slice would look super dandy. In case of the Lizzie Dearden articles, we see that the anonymity allows those who shun the limelight to make an ‘effort’ to keep imbalance through extremism, or what some call the Tommy Robinson political resolution, The article gives us: “white nationalists Generation Identity and neo-Nazi terrorist group National Action among the British actors profiting from “international connectivity”“, do you really think that it is limited to that group? All those white collar board members who cannot be seen with their fingers in the cookie jar have no qualms about buying a bakery, so that they can have the jar at any given moment. At that point yesterday’s article also gets another dimension, when big players need to rely on consultants with a given for fear mongering, how did the media ignore that? Examples are abound, for example articles that rely on ‘should’ 9 times and “The primary danger is the repeat of the fears that many investors had to face in 2018” and the entire paragraph is in the article twice. It is ways like that fear is brought and reinforced, when this is done, there is no trail, no conversation and in the end the crowdsourcing methods are the best to keep it all anonymous. It matters, because the intelligent extreme right player works not through shouting, but through reinforcement of the argument, they aren’t all stupid!

When Rusi looks at Tommy Robinson (Stephen Yaxley-Lennon) we get that: “he had profited from both significant support from foreign donors and crowdfunding from individual donors around the world” this does not come through shouting, it comes from enforcing fears and give examples that are current, does that sound familiar?

Do you think that a Philadelphia-based think tank spends £48,000 on silly shouters? Do you think that the quote: “Robinson was also a beneficiary of a “fellowship” from US tech billionaire Robert Shillman that bolstered his salary from Canadian website Rebel Media, where he worked from early 2017 until February last year” is unique? People like Robert Shillman are rich enough not to care, they are too rich and their view is often accepted because they are super wealthy, so they are regarded as successful, but there are dozens who still fear the limelight and crowdsourcing is a solution to fund many others (far right or far left) with an optional handle on extremism, Lizzie Dearden gives a good view on it. There is one part I do not agree with, even as nothing Keatinge writes is wrong. When I see: “crowdfunding allows extremists to build international platforms that spread hate to wider audiences“. I can tell that he is not wrong, but overlooks the optional larger issue. It is not spreading hate, it is illuminating through half-baked examples that the current solutions are not working. It is not the hate part, but the ‘your kid does not have a job, because an immigrant was overly happy to accept that job at minimum pay‘ that is what sells the larger imbalance. Ignoring the truth that every boss tries to cut costs any way they can, as they are misaligning the cost of doing business, we see that an entire generation is pushed to minimum income, even those with good degrees, add to that age discrimination and we suddenly see a shift that is much larger, it is not promoting hate, but caressing the frustrations of the working class that is much stronger and a larger growth concern. Most do not react to hate, but we will respond to the frustrations that they are hit with every day, that is the part Rusi missed (or so it seems).

There is also an issue with: “Crowdfunding is a vulnerability in the system, it’s a way the internet presents funding opportunities that have not previously been conceived” the issue is not that it is an option, it is that this ‘solution’ has been around for 20 years and no one took a hard look at the options that crowdfunding offered until it was too late. Even as we all seem to focus on Star Citizen (2015) that raised $77 million, the fact that the idea goes back to Auguste Comte (1850) gives rise to more issues. The internet might have made the idea global, but there was a larger issue for the longest of time and the fact that we see a project 4 years ago amass $77 million gives rise to larger concerns. Especially in light of lone wolf dangers that have been around a decade earlier. so even as we see the recognition through: “Senior law enforcement practitioners have suggested that non-violent extremism is often the first step in a process of radicalisation that ends in terrorism, which is why financial analysis into nonviolent extremism should not be overlooked“, the very notion of the text in the Rusi paper on page 17: “The only indicator that appears to be specific to proliferation financing risks relates to whether shipped goods are incompatible with the technical capabilities of the destination country. This highlights a third problem, which is that in order to be able to gain this understanding, an FI would need to: understand the precise technical nature of the item and its potential applications (information that may not be available with sufficient specificity); assess the industrial state of the destination country, including its possible nearterm expansion“, you might recognise two problems. The first is that ‘shipped goods‘ becomes a larger issue when they are spare parts. Consider that some caterpillar crane parts are strong and massive enough to create a stable multi scud launcher, more so when assembly and disassembly could be achieved in under an hour. What is Israel going to do? Bomb a crane? When you realise that the issue grows tenfold with electronics, some might see on how far crowdsourcing could finance a network in Europe and as this danger has been largely accepted since as early as 2012, the entire lack of activity in this realm of non-monitoring makes even less sense. The second part is ‘potential application‘, how many people look at a Caterpillar of Hitachi Crawler crane and considers the spare parts to be the foundation of an optional Scud launching solution? Let’s face it there is no flag that would be raised regarding a construction firm receiving spare parts for their crane.

Now we understand that Rusi made a paper that focusses on the issue, and there is nothing wrong with the paper, it is actually excellent. My issue remains and on page 20 we get the good stuff: “All FIs interviewed for this study said their institutions employed sanctions-screening software to check incoming and outgoing transactions against UN-designated entities, and all were doing so prior to the advent of FATF Recommendation 7.” when we get the ‘UN-designated entities‘ and not the check of facilitators, we see a large delay (in case issues are found), and we get a problem when the situation is not the designations, but the fact that both sides have a middleman and these people talk to the match makers, so we now have a party of five with a Chinese wall in place and the stage where more likely than not, the three in the middle are not on any list, especially the matchmaker, who uses a range of ‘middle man’ for each idea with each transaction, when the transactions become fragmented the chance of not revealed becomes a lot more likely than not and crowdsourcing enables this to a much larger degree, add to this the dark web and bitcoin and we get a mess we cannot decipher. If the facilitators go to the tax office and give them ‘I had a one off consultancy job for a year‘ and pay their taxation on time, it all goes into the IT revenue taxed and not one pig will be squealing, not even as it gets roasted whilst the ‘consultant’ brought home the bacon.

They merely need to consider the office location so that it aligns with: ‘due to the lack of legislation in some jurisdictions to allow an institution to support an asset freeze‘ and the solution is there. And that is when the amount is large enough, when it is smaller, almost never ever true action will be taken, the extremists, political or other can use that system any way it jingles to the beat they needed to hear.

It is a case of musical chairs where the rewards for some really stack up, just like on TV.

 

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Danger on the Australian shores

There is a danger lurking, it took over Japan, the US and Europe, now we see Greg Jericho (aka gorgonomics) vocally giving us: ‘The government needs to get into more debt, our grim economy depends on it‘ (at https://www.theguardian.com/business/grogonomics/2019/may/28/the-government-needs-to-get-into-more-debt-our-grim-economy-depends-on-it) and my first reaction is: “You have got to be out of your bloody mind“. In the first politicians should never be trusted with the option of deeper debt, the US and Europe are clear evidence of that. The second is that giving that much power to the banks is just unacceptable. We see transgression after transgression and they walk away with mere fines. Reuters gave us less than two months ago: “The largest ever money laundering scandal in Europe is rippling through the region’s banks“, these people think that they can get away with murder, and whilst we hear politicians proclaim that they will use the full power of the law, we have yet to see any banker do any serious prison sentence since 2004.

Latvia’s ABLV, the Estonian branch of Danske Bank, Sweden’s Swedbank and it is all about €200,000,000,000 between 2007 and 2015. So far the chief executive of Swedbank was let go, and how much money did they make? These issues are connected. Deutsche bank and the Dutch ING, which was ‘forced’ to pay a $915 million last year for example, yet when their takings are part of billions upon billions, these players go home with a pretty penny. So far the Australian banks are decently clean large debts will optionally change that, anyone telling you different is lying through their teeth. When we realise that EU banks payed over $16 billion in fines between 2012 and 2018 because of lax money-laundering checks, we think that there is a solution, yet how does $16,000,000,000 compare to €200,000,000,000? Someone is going home rich and whilst the banks pay of the fine making it a mere cost, the cost of doing business goes up and so do the fees.

the Singapore Independent (at http://theindependent.sg/nigerian-based-in-singapore-jailed-for-role-in-citibank-money-laundering-scheme/) gave us last week “Paul Gabriel Amos was sentenced to three years’ jail after he pleaded guilty to two counts of dishonestly receiving stolen property amounting to more than S$1 million and one count of money laundering” ad this is still about a 2008 case, it took over a decade to get this far, and when we see “Amos agreed to help in exchange for a cut of the criminal proceeds“, that is how it works and this is in places where banking is a lot more sophisticated than anything Australia has. You might hear accusations that these cases are not connected, but they are. They are connected to greed and ‘opportunity’. My issue is that the Australian government has no business taking out large loans of any kind until they fix the tax system, no matter how long that takes. It gets to be even worse is we take the Business Insider (at https://www.businessinsider.com.au/maxine-waters-deutsche-bank-subpoena-trump-kushner-2019-5), the fact that we see: “The chairwoman of the House Financial Services Committee told INSIDER on Tuesday that a New York Times article detailing how Deutsche Bank buried reports of potentially illegal financial activity linked to President Donald Trump and Jared Kushner “reinforces the need” for the panel “to obtain the documents we have subpoenaed from the bank.”“, when we consider that the banks facilitated for someone who is not President of the United States and we consider on how willing any bank is on the criminal path as the worst thing they face are fines at a mere percentage of the takings, when they call that the cost of doing business, how long until Australia is thoroughly tainted in a similar way?

the fact that ABC gave us 4 weeks ago (at https://www.abc.net.au/news/2019-05-01/google-facebook-make-billions-in-australian-sales-pay-little-tax/11060474) ‘Google, Facebook make billions in Australian sales but pay less than $40m in tax‘, do you not think that overhauling the tax system so that these players pay a fair share is a much better solution? Do you think that paying 0.000002% or less is acceptable? Besides that, the least said about the former car industry and their option for legalised slave labour the better.

Should we not prosecute every treasurer over the last 10 years, and after that see what we can do? I am not some anti-capitalist, I understand that capitalism is a driver and a powerful one, yet even at 1% (giving us at least $200,000,000) would solve a fair amount of issues, would it not? So whilst politicians are wasting our time with “Both companies are facing various probes by regulators in Australia and overseas over issues relating tax“, the entire tax mess should have been addressed well over a decade ago, as such can we get the incomes off al treasurers between 2009 and 2019 back please? This treasurer, if he does not adjust tax laws would be allowed to keep $1 for his attendance.

When we make this law the issues change and yes, we will get all kinds of threats, but they can equally fuck off and bleed someplace else dry. I am certain that a market share of 20 million will draw in other potential investors, because 20 million consumers will want all kinds of stuff.

And whilst people like Greg Jericho are talking about the sweet spot, they all overlook the issue that debt will have to be paid back, that whilst we see that Japan, the US and Europe have no exit strategy to end debt, at present that debt will be there for generations, making them the bitches of banks and fortune 500 companies, plain and simple. When the debt matures the quality of life in these places hit another snag, we did not and will not sign up for that.

I would love to see infrastructure fixed and improved upon, but whilst these idiots are unable to fix the tax system they have no business pushing the tax payers into deep debt.

And whilst there is no doubt that Greg is working from logic, he truly is; the issue is not: “Imagine being able to get a loan to upgrade machinery and equipment for your business at 1.5% – lower than inflation! – and you didn’t take advantage because you have a theory about how debt is bad“, he seemingly forgets that politicians are inherently stupid (they are optionally dumb and greedy in a nice compact package), these politicians ignore and push forward what they had to resolve, the amount of evidence on a global scale is overwhelming. And in the end, we the taxpayers get to pay that hardship, all that whilst tax laws were not dealt with a decade ago, how is that fair to anyone?

 

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That Grrrrrrr moment

I have had my issues with the large corporations for the longest of times. I am not against their existence, I have nothing against corporations making wealth and having a great run of revenue, being against that is just lame and idiotic. Yet corporations should be held to account, properly taxed. So whilst politicians hide behind the coattails of economists like Thomas Piketty for all the most idiotic and self centrered reasons, how about we change a few other things first?

The article ‘Group led by Thomas Piketty presents plan for ‘a fairer Europe’‘ (at https://www.theguardian.com/world/2018/dec/09/eu-brexit-piketty-tax-google-facebook-apple-manifesto), needs to get a clue, and fast. In addition buying a few vowels from Susie Dent is not the worst idea either. this is a personal joke towards Chrononhotonthologos (a Scrabble hit) and the mention of “As you both behave to Night, You shall be paid to Morrow“, a different stroke towards consultancy for shaping ones economy. As I see: “A group of progressive Europeans led by the economist and author Thomas Piketty has drawn up a bold new blueprint for a fairer Europe to address the division, disenchantment, inequality and right-wing populism sweeping the continent“, my blood goes slightly on the boil. How about properly taxing the members of the FAANG group? (Facebook, Amazon, Apple, Netflix and Google), or How about stopping the EU gravy train by at least 85%?

Two elements optionally bringing in billions and you know this! These people are given leeway in ways most people cannot fathom. ‘The Rotten Apple: Tax Avoidance in Ireland‘ gives us: “The European Commission found that Ireland gave Apple preferential tax treatment which amounted to $14.5 billion in unpaid taxes between 2003 and 2014. Due to Apple’s tax havens in Ireland, they have taken advantage of U.S. and Irish tax regulations” and that is merely the top of the iceberg. When we see the angering part with: “In fact, this selective treatment allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003 down to 0.005 per cent in 2014” (source: http://europa.eu/rapid/press-release_IP-16-2923_en.htm), we see that the EU has failed itself and now we see the unacceptable quote: ‘€800bn of levies‘, whilst we get it set into some ‘tax the rich’ status, we need to be weary of the delusional setting of these “more than 50 economists, historians and former politicians from half a dozen countries“. So when we see: “by taxing corporate profits more effectively, as well as income and wealth“. In the foundation that step is not wrong, I am all for properly taxing corporations, yet the EU is part of the problem, it has given away the keys to banks and corporations to so as they like. I do believe that ‘0.005 per cent of profit‘ is ample evidence of that. It is the ‘tax the wealth that is an issue’, because that is where the problem starts. The wealth tax is 5000 times higher than Apple apparently pays. the first sign where we see: “an extra 15% levy on corporate profits, tax increases on individuals earning more than €100,000, a wealth tax on personal fortunes above €1m, and a tax on carbon emissions“, is the problem. These high paid wankers (pardon my French) is not about getting to the corporations, it is the ‘personal fortune‘ that they seem to be after. Now, before you think that you are safe, think again. Your house is part of that making many people considered to be multimillionaires; they now all get a levy on what these gravy train wannabes call ‘fairness’. How about holding all the economic advisors of all governments to account, for any wrongful advice that impacted the government and European coffers negatively for over €250,000, we fine these advisors with €25,000 euro, all of them. This is likely to impact all those economists that hid behind ‘it was a complex situation‘, or ‘carefully phrased denial of corporate facilitation‘. This is the easiest to see with the Dutch fiasco called Fyra (a high speed train) that impacted tax payers by €11 billion. When we see “The Fyra-story also demonstrates that powerful corporate interests (in this case Dutch Railways’ desire to remain the sole rail service provider in The Netherlands) can abuse their position and waste an unbelievable amount of taxpayers’ money“, on a short sighted and narrow-minded view of what the ego wants, whilst the coffers cannot ever afford a scheme that will never be cost effective, we see: “Dutch daily NRC Handelsblad reported in January that the HSA never had the intention to operate a “true” high speed rail service; a strong piece of investigative journalism stated that a speed of 220 kilometers per hour had been deemed sufficient for the Dutch portion of the route from the git-go by the HSA executives (by comparison, high speed rail service in Germany and France exceeds 300 kilometers per hour)“, the setting of simple definitions where the different nations in the EU could not agree on that mere setting. So how about giving a fine to all decision makers costing the Dutch government 11 billion? How about making the bulk of tax deductibles no longer applicable? Any corporation can make a profit when corporate tax is one percent or less, it is time to set the proper stage of corporation tax and that part they imply to get right, but they cannot, so these individuals add ‘a wealth tax on personal fortunes above €1m‘. You see, they do not set it on personal fortunes over €15 million, and hit the truly wealthy, no they need a lot more, because properly taxing the FAANG group (and several others) is just too dangerous. I would in my least diplomatic setting offer that the entire economic fiasco could have been avoided. If their fathers had jerked off over the radiator, instead of impregnating their wives, the entire economic danger to all of us would have died with a sizzle, how wrong am I now? (OK, admitted I am totally lacking diplomacy here)

So when we see: “From a tax on personal wealth and assets: an additional 1% on estates valued at above €1m and 2% on those above €5m” accounting for over 25%, we see a dang3er to too many people all over the EU. Try to find ANY apartment or house for less than €700K in most European metropolitan area’s; it will hit too many people, whilst the truly rich will avoid disaster. This entire matter is as I personally see it a joke.

I suggest:

Any government not being able to hold its budget within 2% over budget, its elected politicians will have to return 25% of their income, those who are unable to do so are removed from office and in addition will have to be incarcerated for no less than the full term +2 years of that government. Regardless, of this, in addition, the entire Gravy train comes to a standstill (and right quick). For these people travel and housing expenses are reduced by 60%, they should be ab le to find a cheaper solution. The Guardian gave us in 2016: “According to a European Union financial transparency system, commission staff spent €22,193 (£17,610) staying at the five-star Shangri-La hotel in Singapore and €54,677 at the five-star Stamford hotel in Brisbane in 2014. Other expenses listed that year include €439,341 on Abelag/Luxaviation, a luxury private jet provider, and €23,696 on chauffeur taxi services“, that needs to stop as well. It is my personal view that Thomas Piketty and his 50 economists (an optional new version of Ali Baba and the 40 thieves) should have stayed in their cave, and not come out at all. Now we have the setting to go over these 50 economists and seek all the things that they helped hide from their senior peers and that is essential now. You see as we are introduced to “a bold new blueprint for a fairer Europe“, is also the optional setting to hold these people who cased all of this by facilitating to corporations and banks to account through prosecution. I find it tasteless and unacceptable that just like Greece, those who caused the mess get to walk away with a pretty penny in their pocket as well.

And this mess is not nearly over. When we look at a few parts, we get to start with: ‘The 1999 Santer Commission Scandal‘, you would think that in 1999, when we get “a devastating report on fraud and nepotism attacked the EU’s executive body for serious management failings. All 20 members of the Commission stepped down, in what was described at the time as the biggest crisis in the European Commission’s history” (source: Brussels Times), you would think that this is the end of it. No no, (at https://uk.reuters.com/article/uk-eu-santer-idUKTRE80N1UG20120124) Reuters reported in 2012 ‘EU draws fire over Santer return to EU post‘ “Prompted to defend Santer at a late night press conference on Monday, Olli Rehn, the European commissioner in charge of economic and monetary affairs, tried to make light of it, saying journalists only became critical of Santer after Commission officials beat them in a football match in late 1998“, politicians making light of the situation in a farce involving nepotism, and as such we can make certain levels of claim towards corruption. Forms of corruption vary, yet they do include: bribery, extortion, cronyism, nepotism, parochialism, patronage, influence peddling, graft, and embezzlement. So as such, the fact that we allow European politicians to re-enter the EU commission after being found guilty here is just too unacceptable. That by itself could also be a cost saving exercise, so does our Thomas Rickety Piketty warlock have a spell on all of us, by merely setting a facade to make thing better for all of us, or merely not worse for some of them? I think that the escalations in France are making people, people in power worried; they are facing the straw that is breaking the camel’s back. This is not something that they are making on the spot. This has been coming for the longest of times and even as I am not against taxing the rich a little more, we need to realise that the entire exercise is merely seen (by me) as a way to paste labels to mere traffic diversions for opening avenues of collecting others.

The primary objective of this survey is to understand the level of corruption perceived by businesses employing one or more persons‘ (at http://ec.europa.eu/commfrontoffice/publicopinion/flash/fl_374_sum_en.pdf), there we see that 38% does not regard nepotism a problem, 40% think that tax rates are a problem (in all fairness, that is a valid point of view to have for any business), and 45% considers corruption not to be a problem. In that setting, changes are not easy, correct changes are near impossible, as we see the setting where corporations and politicians can work together on a ‘compromise’ that will hit the lowly paid taxpayers a lot more than anyone else.

I actually presented a taxed solution in 2015, there I wrote in regards to the UK budget: “So, helping those on low pay is fine, but only if we change Basic rate to 21% and higher rate to 42%, which means that above the £10,600, the basic income goes up by a maximum of £318 and in addition, high income get an additional maximum of £836. This allows us a balanced budget, and if you wonder why not the highest toll bracket? Well, they also get the 1% of the base and the 2% of high anyway, that group is dwindling down and to seek even more to that smaller group seems a little unfair (the non-bankers that is). The second premise here is that this extra collected fee can ONLY be used to balance out the lost revenue from the basic rate group that had their annual income between £10,000 and £13,000 per annum“. The premise was to give the lowest incomes a little extra cash, so we raise the 0% tax maximum point a little; in that case these people will have a little more and we all profit there. As the non-taxable part goes up by a rough £100 a month, the second bracket gets an additional 1%, so they pay £318 more each year, and the second group (the much larger group) pays an additional £836 above that. It leaves the extra £100 without impact on the treasury, giving them extra and still having a stage to reduce debt (as long as Labour is kept out of the treasury coffers). In this case there was no additional impact of the wealthy, their houses not at risk and we would all be a little more social, no, not according to Thomas, the Rickety Piketty warlock. He wants an additional €800 billion, from what I can tell, because they cannot get their tax rules in order, getting the proper taxation in place and with the FAANG group paying as reported a mere 0.005 per cent of profit taxed, how can we ever get a staged setting of corporations in a fair playing field?

In ‘In fear of the future‘ (at https://lawlordtobe.com/2015/03/16/in-fear-of-the-future/) I addressed the stage of the annual £43 billion interest bill, interest is cash lost and the economy that has to pay that much every years is running to keep in the same place, so adding the minimal hardship to reduce that amount, hopefully by reducing the debt to the degree that the interest goes down £1-£3 billion a year would be great, yet not entirely realistic. focussing on reducing the interest by £1 billion a year for the first 10 years is possible, yet it comes at a price and properly taxing corporations at a level that allows them continuance and growth (yet optionally not at opening a new super shop every year) is an option to seek. And even as we see ‘taxing the rich’ in the UK, the true rich is a group of no more than 6000 people, how are they coming up with these billions? So as I stated (in 2015): “If we can believe the 2014 article by the Guardian, this will hit 6000 people, which means that it only raise a few millions, so taxing the rich has always seemed like and always remains a hilarious act of pointlessness. It is the 1% from the basic rate that will truly make a difference. It will drive the debt down faster, it will lower the interest bill which will help lower the debt even more.” It is perfectly valid to disagree with me on this one. Yet Rickety Pickety hedges his bets by giving us: “a tax on personal wealth and assets“, this includes your house and car. Now consider the amount of houses and apartments close to €1 million, in addition, we cannot see if retirement funds are seen as ‘wealth’, in that case, of that happens, the entire calculation will change drastically. Whatever we are trying to create for a rainy day will be overly taxed because politicians and economists could not do their job properly in the first place. In that economists have been tools for politicians for the longest of times as I personally see it and they need to be taxed (read: fined) for all their failures between 2003 and 2017. Let’s make those losses part of the requirement to address, shall we?

I wonder how many of these 50 autographs will suddenly vanish (read: get retracted) when we see them held to account for certain projects in real estate, energy and transportation endeavours, I am merely speculating here.

A ‘hidden’ statement at the top!

In the current setting of budget and taxation, please explain to me how ‘Quadrupling the current EU budget to 4% of GDP would raise about €800bn‘, how does upping the budget 4 times over (including the gravy train I reckon) help raising cash? Is he hiding behind ‘spend a little to get a lot‘? Is the $3 trillion QE bond buying fiasco not enough of a train wreck at present?

In the article we are also given a gem. It is Guntram Wolff who questioned the need for a continent-wide project. “If the cross-border transfer element is only 0.1%, why do the whole thing at EU level?” he asked. That is indeed a very good question. I personally see this as some EU fuelled stage where we suddenly see the report being used as a QE prolongation project. We can see part of this point of view in the Economist where we see (at https://www.economist.com/finance-and-economics/2018/12/08/quantitative-easing-draws-to-a-close-despite-a-faltering-economy): “an extension to its targeted long-term repo operations, which offer banks cheap funding in return for lending to households and firms. That would benefit Italian banks most. They are heavy users of the scheme and the stand-off with Brussels has pushed up their borrowing costs. But to help them would be to ease the market pressure on Italy that might otherwise encourage fiscal rectitude. The agony of setting monetary policy only gets worse when politics comes into play.” In addition there was Seeking Alpha, who gave us last week: “Forward Guidance and Reinvestment Policy will then take QE’s place“, you say potato, and I say tomato. From my point of view it is not merely the application to move coins from the trouser pocket to the vest pocket, it is (as I personally see it), to move coins on their suits, in whatever pocket the can to present some level of status quo, a status that has been non-realistic for the longest of times.

So my simple solution, to merely add 1% and 2% to the middle class (and thus the upper class getting both as well optionally with a mere 1% added, gives us the option on national levels to finally do something about these crushing debts. the entire Thomas Piketty and his 50 abacus users report is not merely over the top, it is (as I personally see it) some under the waterline agenda to make certain changes that will facilitate for corporations to a larger degree in the end, because if they pay 15% on one end, you better believe that they get 20% from somewhere else (it is the trouser and vest pocket strategy). In all this, the people having a decent house merely get an invoice with the ‘Pay within the next 30 days’ routine in the end which I find offensive here. In the same manner where I stated a decade ago (it could have been 15 years) that from the very beginning, making ecommerce businesses tax accountable at the place of delivery (the buying consumer) would have been fair to all shops and merchants, none of that happened and in the end shops can no longer compete and close down. Crushed between cheap online competition and ego tripping landlords (the second most of all), we see that continuance is not an option and this links to the EU, as it is trying to prolong a system that is not merely unfair, it cannot be maintained in its current form. More taxation is not the option, it never was, holding politicians accountable to the expenditure and unbalanced tax laws that they allow for is a much larger weight on one side of the seesaw and that is drowning the economic status of all.

And consider merely one side, a mere example from the recent past. Bloomberg gave us “Apple is leasing about 500,000 square feet (46,451 square meters) of office space at the new headquarters, and plans to move 1,400 employees there. Bloomberg News reported last year that the building’s developers were on course to achieve less than half of their original return target as costs rose and wider economic uncertainty damps demand for the most expensive homes.” I do not mind that Apple moves, that they look good and prestigious, it is their right. Yet now consider the part: “Apple’s new UK headquarters will be part of a £14 billion redevelopment at Battersea Power Station“, as well as “it will take up around 40% of the office space in the old power station“. So 40% of the office space of a £14 billion project? How much tax exemption will they get there? Looking good through non taxability is nice, but that is all it is, nice, it should not allow for tax exemption. And if that makes them decide to move somewhere else, that is fine too. Consider that social housing got cut in that building so in 2017 we went from: “Battersea Power Station is determined to deliver 15% affordable homes, equating to 636 homes“, to “they slashed the number of affordable flats to just 386, a 40% reduction from original plans“, by taxing these options, we will ensure in many places that these so called milking investors take a step back and consider what should be allowed. This example is in the UK, yet there are examples all over Europe, interesting how that part is not highlighted, even as it is optionally part of the ‘taxing corporations’ event, what they lose on one side, they gain in the other. It is seemingly in opposition with Germany where we see ‘Hamburg to seize commercial property to house migrants‘, I use the word seemingly as I have not seen enough data to see whether I merely saw one side of the coin, that part is important too, yet I have seen in Sweden that there are tensions as well as a much better situation than the UK had, so there is space for improvement all over the EU (and the UK mind you), this all adds to the tensions as housing is the number one requirement and keeping that cost down, as well as that value down gives rise to the decrease of hogging and hoarding rental apartments, giving a playing field that is much more level and gives a release of economic tension to the largest European population and as that tension goes down, it will decrease other tensions as well. It does not solve the entire non-budgeting ability to 27 EU nations and as such it is not really part of this, but it is a strong covariant towards economic living of the entire EU population, that is very much a factor here. It does take care of division, disenchantment, and inequality to some degree. That we consider right-wing populism is pushed though the vision of an unfair and unacceptable gravy train and can be addressed by taking that train out of commission (well at least 85% that is). In the end I think that the mention of ‘the EU’s so-called democratic deficit‘, we could consider making nepotism prosecutable with an added lifelong ban on ever returning to any political post, EU or national. Did I oversimplify the problem for Thomas Piketty?

You tell me, and when you think I am wrong, that is perfectly fine, consider Alain Juppé, and Jacques Santer. Consider how people have been made redundant and end up not having any options, yet these people have a shielding umbrella that allows for the return to high yielding governmental incomes.

There is a lot wrong in several ways in all this and it makes me growl (in a rabid way mind you), even as we realise when we try to tackle inequality, we need to take heed from the entire FIFA matter in more than one way and these failings have been ignored (as far as I can tell) by this so called ‘bold new blueprint‘, the stage of mismanagement issues, non-transparency (especially in the ECB) and a whole range of options not cleared before they all start looking for ways to tax more and keep one of the most inefficient logistic systems in the history of the world (as I personally see it) in place. You cannot win more by charging more, not until you fixed your internal accountancy department, should you doubt that, look at Tesco and the Danske Bank and Deutsche Bank, with the acclaimed €200bn dirty money scandal, especially as this is commented on with: “it remains to be seen if any individuals will face justice for the biggest money-laundering scandal in EU history” by the EU Observer (November 29th).

Taxing the rich? Rickety Pickety, you have much larger issues to address before you should be allowed to make a play for those who worked hard towards their homes and retirement, as in the end, that is wwhere this invoice ends up as I personally see it.

Have a great Monday!

 

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IQ versus PI

I could not believe my eyes this morning. OK, I admit I had a weird night. It was suddenly too warm (for winter) and I ended up cleaning my kitchen at 03:00, that’s how I roll at times. So when I got my morning routine together which was delayed by 30 minutes, I ended up having to wake up to ‘Moscow using UK as dumping ground for poison, says Sajid Javid’ (at https://www.theguardian.com/politics/2018/jul/05/sajid-javid-uk-to-consult-allies-over-novichok-response-russia-poisoning), whilst having my first (and second) coffee. Now as a conservative, I am worried. For the most, I do not consider politicians to be overly intelligent. Now that is not really a big deal, my IQ test was around 12 point lower than Alan Turing, so I don’t have the biscuit on Intelligence, I know that much. Yet as a former boss of the Deutsche Bank, I would have thought that Sajid Javid had a decent handle on things (like common sense). So when I get confronted with “using the UK as a “dumping ground” for poison and urged Russia to explain “exactly what has gone on””, I do wonder whether Sajid is smitten with IQ or with Plenty Ignorance (PI). So as the article is giving us things like “Sources close to the investigation dropped a hint that they may now know the identity of the would-be killers who targeted the Skripals”, that whilst the transmission method was never determined, for either case, the fact that the goods cannot be traced as the individual parts were never found, we are confronted with ‘dropped a hint’ that comes across as an almost desperate attempt to shake the tree and wonder if anyone will be running away. The additional part where we are all still confronted with what the fans of the Hammers might regard as a ‘load of bollocks’, so when you see “the novichok that harmed them may have been in a sealed container left following the attack”, we need to realise that the operative part in all the unknown parts is ‘may have been’.

Now, this is nothing against the metropolitan police or the counter terrorism units, as this is not ANYONE’S cup of tea and we can add the CIA to that list as they are learning the issues that the Salisbury detectives are confronted with and with Salisbury with an utter lack of CCTV’s, the detectives get to work with a lot less than their peers in Sussex and Brighton currently have access to.

Now, the article also gives us “The incident in Amesbury is being viewed by the authorities as an after-effect of the March attack rather than a major new development. This would suggest the police do not regard the agent as being from a fresh batch” and that is important as I mentioned towards that yesterday (it was speculative at the time), and the fact that it might have been thrown out (if that is true) then it was a dump, but I feel certain that it was not done as a state driven action. People in that setting do not leave evidence behind. In addition, we need more factual data before we can draw on any speculative conclusions, yet it seems that Sajid does not have them either. The ‘may have been’ and ‘dropped a hint’ give us that much.

I do get it, they are all about smothering optional panic, but being stupid about it does not tend to be a solution, it pretty much never is. So when we see: “Our strong working assumption is that they came into contact with the nerve agent in a different location to the sites that were part of the initial clean-up operation”, we see to a decent regard a factual part, yet most common sense brains would have gotten us there, in addition, there were only two affected in both initial cases, so the investigators do not have anything and the additional police officer hit, would have been most likely from a transfer from one of the initial victims, which makes sense. In addition to that, the fact that the second pair was hit so much later, knowing that all the Novichok versions are highly unstable. Now in all regards, we cannot give Sputnik news the sentiment of being unbiased yet they gave us in April parts that were already known. “the Novichok is a very unstable substance, which depends on [exposure to] water, on alkalis, on everything”, So when we consider the rain and humidity in the Salisbury region, how likely are some of the presented facts? They also gave a part that I did not know (having no degree in Biomedicine or Ways of Mass Discomfort). The quote: “Mirzayanov said that the toxin did not kill Skripals since the substance is vulnerable to humidity, and there was fog in the United Kingdom on March 4, the day of the poisoning attack on Skripals”. I surmised part due to its instability, yet the given ‘the substance is vulnerable to humidity, and there was fog in the United Kingdom on March 4, the day of the poisoning attack on Skripals’ gives us that humidity is a much stronger factor in negating the efficiency of the substance, making it a lot less terminal. Something a state ordered visiting person would have been made aware of. So as we are confronted with more and more media outbursts, we are watching a show where the cast is unflatteringly (and undeserving) caught with their pants around the ankles doing the penguin.

The final part that is questionable is the quote: “scientists had said novichok degraded in the natural environment over time, adding to the notion that the substance Sturgess and Rowley came into contact with was in a container.” Yet when we accept that all the Novichoks are unstable and that humidity impacts it in a larger degree implies that there was no ‘degradation’ not after such a long time, not to remain this potent. So if it was a sealed container, there might be some reflection on that, but that requires a lucid person to answers a lot of questions and the victims are still “critically ill and doctors at Salisbury district hospital are trying to stabilise them”, so there is that part gone. In addition, they either have the container, or they do not. It might make most sense, but in the end it seems that some people of authority are setting a stage of implied emotion through speculation and half truth, so whilst they are all members of the Ignoranus clan and basically blaming the Russian government on this (this one time they might actually be innocent, so go figure), we see ‘The eyes of the world are currently on Russia, not least because of the World Cup’. It is a dangerous setting, not because of the fact that it is done, but merely because the people are not looking and perhaps realising that there was something that they missed which might have actually helped the detectives working on this.

And in the end Sajid Javid made it worse with: “We will stand up to the actions that threaten our security and the security of our partners. It is unacceptable for our people to be either deliberate or accidental targets, or for our streets, our parks, our towns to be dumping grounds for poison” the mere fact that there is close to no evidence linking the Russian government to this event because they basically invented the stuff, is almost like blaming Alfred Nobel for all the blown up buildings in Syria in the last 5 years when dynamite was used. The fact that the man has been dead for almost 122 years is the smallest of issues that the media will find a loophole for. Adding: ‘Sources close to the investigation’ or ‘may have been’ usually does that trick.

Yet no one denies that there is an issue, there is one that needs a resolution and we need to realise that one of several Novichok nerve agents are out in the open. There is even the consideration that someone with an utter lack of common sense is playing with one (or more) of them. The fact that there are no terminal cases might imply this, yet the wielder and the reason are unknown. We can also agree that in the Skripal case there might have been Russian government employee involvement, yet no evidence was ever brought to light. In the second case it is so much less likely, yet there we do not know how the nerve agent was set upon the couple, the timeline clearly indicates that she was the initial infected and the setting of a third unharmed person implies with a level of certainty that it happened outside of their premises and that is about all we have been exposed to. There might be more, but the police will not and optionally should not reveal that for the longer of times, which is fair enough, they have a hard task ahead and they can do without the Monday morning quarterbacks called bloggers (including me) and journalists (pretty much every paper on the planet). I do hope that they can solve and close the case, yet until that point comes, I do hope that Sajid Javid gets clue and gets it fast, because the PI he is showing is getting to be exponentially larger than his IQ ever was.

 

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It’s a kind of Euro

In Italy things are off the walls, now we see ‘New elections loom in Italy‘ (at https://www.theguardian.com/world/2018/may/27/italys-pm-designate-giuseppe-conte-fails-to-form-populist-government), where it again is about currency, this time it is Italy that as an issue with ‘country’s Eurozone future‘. In this the escalation is “the shock resignation of the country’s populist prime minister-in waiting, Giuseppe Conte, after Italy’s president refused to accept Conte’s controversial choice for finance minister“, there is a setting that is given, I have written about the folly of the EU, or better stated, the folly it became. I have been in favour of Brexit for a few reasons, yet here, in Italy the setting is not the same. “Sergio Mattarella, the Italian president who was installed by a previous pro-EU government, refused to accept the nomination for finance minister of Paolo Savona, an 81-year-old former industry minister who has called Italy’s entry into the euro a “historic mistake”“, now beside the fact that an 81 year old has no business getting elected into office for a number of reasons, the issue of anti-Euro Paolo Savona have been known for a long time. So as pro-EU Sergio Mattarella decides to refuse anyone who is anti-EU in office, we need to think critical. Is he allowed to do that? There is of course a situation where that could backfire, yet we all need to realise that Sergio Mattarella is an expert on parliamentary procedure, highly educated and highly intelligent with decades of government experience, so if he sets his mind to it, it will not happen. Basically he can delay anti-EU waves for 8 months until after the next presidential elections. If he is not re-elected, the game changes. The EU has 8 months to satisfy the hearts and minds of the Italian people, because at present those options do not look great. The fact that the populist choices are all steering towards non-EU settings is a nightmare for Brussels. They were able to calm the storm in France, but Italy was at the tail end of all the elections, we always knew that, I even pointed it out 2 years ago that this was an option. I did mention that it was an unlikely one; the escalating part is not merely the fact that this populist setting is anti-EU; it is actually much stronger anti Germany, which is a bigger issue. Whether there is an EU or not, the European nations need to find a way to work together. Having the 2 larger players in a group of 4 large players is not really a setting that works for Europe. Even if most people tend to set Italy in a stage of Pizza, Pasta and Piffle, Italy has shown to be a global player and a large one. It has its social issues and the bank and loan debts of Italy don’t help any, but Italy has had its moments throughout the ages and I feel certain that Italy is not done yet, so in that respect finding common ground with Italy is the better play to make.

In all this President Sergio Mattarella is not nearly done, we now know that Carlo Cottarelli is asked to set the stage to become the next Prime Minister for Italy. The Italian elections will not allow for an anti-EU government to proceed to leave the Euro, Sergio’s response was that: “he had rejected the candidate, 81-year-old Eurosceptic economist Paolo Savona, because he had threatened to pull Italy from the single currency “The uncertainty over our position has alarmed investors and savers both in Italy and abroad,” he said, adding: “Membership of the euro is a fundamental choice. If we want to discuss it, then we should do so in a serious fashion.”” (at http://news.trust.org//item/20180527234047-96z65/), so here we all are, the next one that wants to leave the Euro and now there is suddenly an upheaval, just like in France. Here the setting is different, because the Italian President is Pro-EU and he is doing what is legally allowed. We can go in many directions, but this was always going to be an unsettling situation. I knew that for 2 years, although at that stage Italy leaving the EU was really small at that stage. Europe has not been able to prosper its economy, it merely pumped 3 trillion euro into a situation that was never going to work and now that 750 million Europeans realise that they all need to pay 4,000 Euro just to stay where they are right now, that is angering more and more Europeans. the French were warned ahead, yet they decided to have faith in an investment banker above a member of Front Nationale, Italy was not waiting and is now in a stage of something close to civil unrest, which will not help anyone either. Yet the economic setting for Italy could take a much deeper dive and not in a good way. The bigger issue is not just that Carlo Cottarelli is a former International Monetary Fund director. It is that there are more and more issues shown that the dangers are rising, not stabilising or subsiding and that is where someone optionally told President Sergio Mattarella to stop this at all costs. Part of this was seen in April (at https://www.agoravox.fr/actualites/economie/article/a-quand-l-eclatement-de-la-203577). Now the article is in French, so there is that, but it comes down to: “Bridgewater, the largest hedge fund (investment fund – manages $ 160 billion of assets) of the world has put $ 22 billion against the euro area  : the positions down (“sellers”) of the fund prove it bet against many European (Airbus), German (Siemens, Deutsche Bank) French (Total, BNP Paribas) and Italian (Intesa Sanpaolo, Enel and Eni) companies, among others. The company is not known to tackle particular companies, but rather to bet on the health of the economy in general“. So there is a partial setting where the EU is now facing its own version that we saw in the cinema in 2015 with The Big Short. Now after we read the Intro, we need to see the real deal. It is seen with “Since 2011, € 4 billion has been injected into the euro zone (that is to say into commercial banks) by the European Central Bank (ECB), which represents more than a third of the region’s GDP. The majority of this currency is mainly in Germany and Luxembourg, which, you will agree, are not the most difficult of the area. More seriously, much of this liquidity has not financed the real economy through credit to individuals and businesses. Instead, the commercial banks have saved € 2,000bn of this fresh money on their account at the ECB until the end of 2017 (against € 300bn at the beginning of 2011) to “respect their liquidity ratio” (to have enough deposit in liquid currency crisis).As in the United States, quantitative easing allowed the central bank to bail out private banks by buying back their debts. In other words, the debts of the private sector are paid by the taxpayer without any return on investment. At the same time, François Villeroy de Galhau, governor of the Banque de France, called for less regulation and more bank mergers and acquisitions in the EU, using the US banking sector as a model.” Here we see in the article by Géopolitique Profonde that the setting of a dangerous situation is escalating, because we aren’t in it for a mere 4 billion, the Eurozone is in it for €3,000 billion. An amount that surpasses the economic value of several Euro block nations, which is almost impossible to keep with the UK moving away, if Italy does the same thing, the party ends right quick with no options and no way to keep the Euro stable or at its levels, it becomes a currency at a value that is merely half the value of the Yen, wiping out retirement funds, loan balances and credit scores overnight. The final part is seen with “The ECB also warns that the Eurozone risks squarely bursting into the next crisis if it is not strengthened. In other words, Member States have to reform their economies by then, create budget margins and integrate markets and services at the zone level to better absorb potential losses without using taxpayers. A fiscal instrument such as a euro zone budget controlled by a European finance minister, as defended by President Emmanuel Macron, would also help cope with a major economic shock that seems inevitable. Suffice to say that this is problematic given the lack of consensus on the subject and in particular a German reluctance. The European Central Bank has issued the idea late 2017, long planned by serious economists, to abolish the limit of € 100,000 guaranteed in case of rescue operation or bankruptcy bank (Facts & Document No. 443, 15/11 / 17-15 / 12/17 p.8 and 9)” (the original article has a lot more, so please read it!

It now also shows (read: implies) a second part not seen before, with ‘The European Central Bank has issued the idea late 2017, long planned by serious economists, to abolish the limit of € 100,000 guaranteed in case of rescue operation or bankruptcy bank‘, it implies that Emmanuel Macron must have been prepped on a much higher level and he did not merely come at the 11th hour, ‘the idea issued late 2017’ means that it was already in motion for consideration no later than 2016, so when Marine Le Pen was gaining and ended up as a finalist, the ECB must have really panicked, it implies that Emmanuel Macron was a contingency plan in case the entire mess went tits up and it basically did. Now they need to do it again under the eyes of scrutiny from anti-EU groups whilst Italy is in a mess that could double down on the dangers and risks that the EU is facing. That part is also a consideration when we see the quote by Hans-Werner Sinn who is currently the President of the Ifo Institute for Economic Research, gives us “I do not know if the euro will last in the long run, but its operating system is doomed“, yet that must give the EU people in Brussels the strength they need to actually fix their system (no, they won’t). The question becomes how far will the ECB go to keep the Eurozone ‘enabled’ whilst taking away the options from national political parties? that is the question that matters, because that is at play, even as Germany is now opposing reforms, mainly because Germany ended up in a good place after they enforced austerity when it would work and that worked, the Germans have Angela Merkel to thank for that, yet the other nations (like 24 of them), ignored all the signs and decided to listen to economic forecast people pretending to be native American Shamans, telling them that they can make it rain on command, a concept that did not really quite pan out did it? Now the reforms are pushed because there were stupid people ignoring the signs and not acting preventively when they could, now the Eurozone is willing to cater to two dozen demented economists, whilst pissing off the one economy that tighten the belt many years ago to avoid what is happening right now. You see, when the reform goes through Berlin gets confronted with a risk-sharing plan and ends up shouldering the largest proportion of such a machine, that mechanism will avoid the embarrassment of those two dozen Dumbo’s (aka: numnuts, or more academically stated ‘someone who regularly botches a job, event, or situation’), whilst those people are reselling their idea as ‘I have a way where you need not pay any taxes at all‘ to large corporations getting an annual 7 figure income for another 3-7 years. How is that acceptable or fair?

So we are about to see a different Euro, one losing value due to QE, due to Italian unrest and against banks that have pushed their margins in the way US banks have them, meaning that the next 2 years we will most likely see off the wall bonus levels for bankers surpassing those from Wall Street likely for the first time in history, at the end of that rainbow, those having money in Europe might not have that much left. I admit that this is pure speculation from my part, yet when you see the elements and the settings of the banks, how wrong do you think I will be in 2019-2020?

So when we go back to the Guardian article at the beginning and we take a look at two quotes, the first “As the European commission unveiled its economic advice to member states last week, the body’s finance commissioner, Pierre Moscovici, said he was hoping for “cooperation on the basis of dialogue, respect and mutual trust”“. I go with ‘What trust?‘ and in addition with ‘cooperation on the basis of dialogue merely implies that Pierre Moscovici is more likely not to answer question and bullshit his way around the issue‘ and as former French Minister of Economy he could do it, he saw Mark Zuckerberg get through a European meeting never answering any questions and he reckons he is at least as intelligent as Mark Zuckerberg. when we see “Cecilia Malmstöm, said “there are some things there that are worrying” about Italy’s incoming government“, she sees right, the current Italy is actually a lot less Euro minded than the setting was in 2016-2017, so there is a setting of decreased trust that was never properly dealt with, the EU commissions left that untended for too long and now they have an even larger issue to face. So that bright Svenska Flicka is seeing the issues rise on a nearly hourly basis and even as we see the play go nice for now, they will change. I think that in this Matteo Salvini played the game wrong, instead of altering an alternative for Paolo Savona and replace him after Sergio Mattarella is not re-elected, the game could have continued, now they are busting head to head where Matteo is nowhere near as experienced as Sergio is, so that is a fight he is unlikely to win, unless he drops Italy on a stage of civil unrest, which is not a good setting for either player.

We cannot tell what will happen next, but for the near future (June-September), it is unlikely to be a pretty setting, we will need to take another look at the Italian economic setting when the dust settles.

 

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The risk of androgynous automation

Today we see another message, another prediction and another approach to make people nervous. This time it is a combined effort from the fields of Oxford University and Deloitte, they find that ‘77% probability of ‘repetitive and predictable’ roles being automated‘ (at https://www.theguardian.com/society/2016/oct/25/850000-public-sector-jobs-automated-2030-oxford-university-deloitte-study).

So how true is this?

Actually, there is a lot of truth in it. The truth is not just a given, it is an essential need. Yet the headline ‘Study says 850,000 UK public sector jobs could be automated by 2030‘ is a problem, not one of disaster, but one of opportunity possibly missed. The article gives us a few things, including links to the full report (indirect), which is a good thing and let’s be honest, Deloitte is no PwC; they stand miles above that group of Excel users. My first issue is with page 2. Not because it is incorrect, but the difference from my view is as I see it more than semantics. You see, they state “eliminating the budget deficit – into an era of parallel challenges as it moves towards Brexit“. I believe that Brexit will enable over time a speedier recovery of the deficit, it will be no picnic, but it will happen. Which is why I in earlier writing opposed the view the independent had. They wrote “Britain’s largest banks are planning to move business overseas due to uncertainty over the Brexit process, the head of the British Bankers’ Association has warned“, where my response in a decently diplomatic tone was “So, let them fuck off! The moment they feel the initial 2018 collapse of the Euro and the US Dollar, which will be voiced as ‘our currency will face a temporary contraction of value’, then they will see the cost they face and the revenue they are now missing out of. So, feel free to consider to return after learning that mistake under conditions of massive administrative fees for consideration of inclusion into the UK economy“. This is not an empty view, when the UK returns to strength, those moved away will see contracting economies in Germany, where the Deutsche Bank will be desperate to retain business out of fear of the damage of ‘written off’ collapsing corporations. France will be in a similar state, but there Crédit Agricole and Natixis are the Powerbrokers and neither will consider some ‘grocery bank’ that is relocating to ‘new shores’, so these moving banks will not be too welcome there. And several other nations are in a similar setting. So what is left? Italy? Greece? Good luck with that idea!

So as the UK is facing new issues and new challenges, Deloitte is showing that it is not all roses. The report shows on page 12 “The OECD and IMF views are backed up by OBR analysis that suggests spending on investment, public services and benefits are the interventions most likely to provide rapid economic boosts while providing a platform for medium and longer term growth“, this illuminates an earlier issue that has been mentioned by yours truly (aka: me) more than once. It isn’t just the £11.2 NHS IT failure the UK Labour party gave its citizens. The bigger issue is that governments at large have had a failing grade in managing such projects. Over micro-managing made these projects too massive and in the end no longer feasible or realistic. If this is the path, than it needs to precede an altered adjustment in procedures on how to manage and set these projects. The issue we see that still is required for the NHS, also clearly shows that the political interference tends to be a hindrance rarely a solution. However, the political part cannot be removed, but the entire setup can be altered in another way. A clear definition of what is required, that would after this point be scrutinised by proper IT specialists working for the government (to keep that part of the costing down), only then when that part has been dealt with, can the project move into a new field. If this was the Law and Mental Health, it might be best phrased that the government needs an IT version of a Diagnostic and Statistical Manual of Mental Disorders (DSM-5). Such a manual would need a data requirement part, and application part, a data networking part and a security part. Until such an approach is made, the need that we see, will end up being a massive expenditure towards the Exchequers chest, with the risk of no result and no alternative. These paths make sense in two ways. In the first there will be a lot more clarity on what is requested, required and delivered. There will be less contractual mud and as such whomever took the project will be responsible for the delivered bad boy and it would show a clear path of adjustment and repairs (where needed).

There is even a new side in this, it will shape the required need of technical universities. Because as they become involved, delivering the hours and manpower towards these projects, the costing will be reduced, the Universities will also gain an income and their students would end up with a partial career and years of work and subsequent income. You see, the need to move away from these ‘conceptual consultants’ and selling concepts not products is an essential need to make it all work. There is even an additional benefit that larger IT corporations will lose their grip on governmental budgets and it will serve a wider audience, a change that has been overdue for at least 10 years.

The report gives on page 20 the public’s attitude. My issue is number 2. “More people expect public services to get worse because of Brexit“, I am not sure if that is complete. It is not incorrect, but the point of focus would reset really quickly when we consider the Guardian where we read “Deloitte’s previous work has shown that all sectors will be affected by automation in the next two decades, with 74% of jobs in transportation and storage, 59% in wholesale and retail trades and 56% in manufacturing having a high chance of being automated“, any automation where we see the change from personal towards an automated androgynous system, tends to cause waves of rejection and stress. Even today, we still have an automated irritation when we hear ‘press 1 for sales‘. Until we can upgrade these systems into a much better evolved system, automation will fluctuate into people seeking other avenues in acquiring that what they need. In addition, there is still an aversion to automated sales in some areas as distribution misses the quality marks the recipient demands in some cases. Now, we can all agree that there is plenty of evolution in this field and the evolution is growing in many directions and in long before 2030 we will have systems that are vastly superior to the systems we have today, that is the way the beast tends to work. There is also a given that we cannot yet predict how that will be in 5 years, yet all this requires a solid foundation between sales, services and facilitation/distribution and that part is currently still missing.

Now we get to the part that is a little bit of an issue with the report. We see that the top issue is ‘Better public transport‘, but better how? We see it on page 21 of the full report, so when we see ‘What things would you say would most improve public services in your area?’ Here, I miss a part where we see what the audience now feels is missing or failing. Is it prices, the amounts of times the public transport comes in, how busy it is (no sitting options), you see, they all come with extra costs. More busses means more costs. The solution that seemingly addresses all three mentioned, but is that the failure, the flaw or is it something else? I think that this issue remains subserving to the public’s personal issues ‘Poverty, inequality and low pay‘ as well as ‘Housing‘, which is all about the quality of life for most people. How to address that part is also an issue and automation does not address these policies in any way. Which is respectively 20% and 18% of an asked population of 1099 adults, which in my view is a population way too small to set this ‘State of the State‘ to. For a decent level of reliability, especially as the UK is a mere 65 million people, having a response quota 5,000-10,000 on a national level would have been an essential first. If the results were weighted towards the UK demographics, than it is likely that this report will have additional ‘flaws’, making me wonder who signed off on the requested paper?

There is another side the Guardian gives “However, in contrast to the doomsayers who predict mass unemployment, the firm has argued that over the last 140 years automation has created more work than it destroyed“, I am on the side of Deloitte here. In addition to creating more work, from the issues I raised earlier when considering that 10%-20% is moving towards retirement, the new jobs that are brought will be largely long term jobs and as the setting from tertiary IT education focusses on the governmental automation needs it already has as well as those we will likely see over the next 5 years, the overall quality of the workers in this field could rise almost exponentially when set this against the prepared workforce in the last 10 years. The result of better and more focussed workers will also increase the curve of automation as well as the quality of it. Part of the new data world is discussed on page 34 of that report. the quote “A police and crime commissioner compared data security challenges in the public sector to those in banking, concluding that banks “have secure information and have got away with it”” reads a little weird, yet the foundation of it is a requirement factor that will grow immensely. That field will grow in two ways. The first is the growing field of non-repudiation, a clear register that a certain person accessed certain data and only that person could have done it. This field especially if a cause for concern because there is a gap in technology here and especially in the case of NHS data, that gap needs to be filled (as well as several other fields). Should you doubt that, or prefer to trivialise this, then look towards Ashley Madison, the Office of Personnel Management, Anthem, Hacking Team and Premera. In effect totalling the endangered personal details of up to 150 million people. And this is only the hacks of 2015. When we see the upcoming move towards domotics, the overall danger of personal data getting out has the option of growing the number of people exposed by 1000%, basically a lot more than the complete UK population, at that stage even the sheep, sheepdogs and pony’s on Shetland could find their personal details online. This industry will grow, with a large club of international career opportunities in IT and the growing niche of Data Security.

In the end, we can agree with the numbers, or we can disagree. No matter how the meat is sliced, the recommendation on page 49 are in the end what matters. That part reads a little too diplomatic, but in all fairness they are points that count. Yet, as I personally see this, especially when set against page 2, I am missing something. You see, in my view, there is an item 6. I would state “This state will need to grow into a different dynamic (Government, Non-Profit and Commercial), it requires to grow its government policies by actively engaging and hiring the final year students into its governmental workplace and make them part of the IT evolution“.

It is my view that corporate needs will always exist, yet by preparing these students, graduating them and for them to adhere to corporate policies as they sell their innovations to government is all good for those corporations and I am not against that, because they will get a massive dose of that throughout their careers. There is nothing wrong by having these places of education create part of the engines of solution for the UK government. It falls directly in line with the thoughts in recommendations 2, 3 and 4.

The paper is a lot more than just about IT, even though IT takes the forefront here. When we look at the Guardian quotes “Interactive roles, which require “a high degree of personal interaction, including jobs such as teachers, social workers and police officers”, face a 23% chance of automation“, “senior staff in “cognitive roles that mostly require strategic thinking and complex reasoning, including finance directors and chief executives”, 14% have a chance of being automated” as well as “but the number of health service staff in this “interactive” job is expected to fall to 266,000 by 2030“. This grows another side in the IT business. Over the next 10 years we will see evolution and change as we see CRM systems and the interpretation of ‘What is a CRM system?’

The interpretation of ‘manage and analyse customer interactions and data throughout the customer lifecycle‘ has gone through massive change due to places like Google and systems like Facebook. This is an ongoing path and the inclusion of 5G and domotics over the next 5 years will create even more waves. It is starting to be almost essential that governments at large (not just the UK) are grabbing these changes by the proverbial balls before we see another iteration of lagging adapted technology. It is not the requirement to be ahead, but to be ‘inclusively ready’ will turn the tables on many issues. To be ready to include within the current technological iteration would give an additional decade of data and opportunities, whilst not adhering to these large changes could become increasingly costly over time. In an age where we move towards automation the need to be ahead is not the most essential one, it is staying behind where the danger lies. In that regard, you end up having to adhere towards whatever the commercial technologist brings, instead of shaping technology in ways where it is most useful for you.

A lesson most have learned the expensive way in this generation.

If there is one part I have to disagree with, than it is “Our wider research on automation also shows that while jobs are displaced by automation, new, higher-skilled and better paying jobs are created as a result“, the issue is not the need for these people, but as governments are no longer able to afford certain pricing plans (as those commercial managers hope they could price them at), it becomes a market where the cheapest provider is willing to offer it on, meaning that junior staff gets to be under higher scrutiny for less money, in a place where unemployment is relatively high, these hiring managers will get away with it. I reckon that the market will positively adjust by 2021, but that is still 5 years away. Unless you are a niche specialist, it will be your fate, but overall the quality of life would start to go up by 2019 (due to rising cost of living, aka rent), that is if you have the right degrees.

A slightly gloomy picture that is absent of doom and still a lot better than the issues the EU population overall is facing over the next 3 years.

 

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