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Evidence by candlelight

This was coming. It took me less than an hour to fathom this outcome when i wrote the initial articles on Novichok and the Skripal family. On March 17th, within ‘Something for the Silver Screen‘ (at https://lawlordtobe.com/2018/03/17/something-for-the-silver-screen/), the situation was clear to me and it was given by the media with ‘U.S., France and Germany join Britain‘, as I see it this was about something else. The additional ‘evidence’ as we saw it in the Guardian, the Washington Post and the BBC gave us a lot and when read and put together, the evidence was not stacking up. That is now seen in ‘Porton Down experts unable to verify precise source of novichok‘ (at https://www.theguardian.com/uk-news/2018/apr/03/porton-down-experts-unable-to-verify-precise-source-of-novichok). Now, let’s be clear. It does not make Russia innocent, yet whether it was a Russian or the Russian government can’t be verified and when we consider that truth we need to realise that PM Theresa May overreached her abilities and her office by a long stretch. The fact that Porton Down cannot identify whether the Novichok was made in Russia is merely one side, it does not absolve Russia, yet in similar thought, the fact that the origin cannot be determined also implies, or better stated, clearly indicates that the premise ‘beyond all reasonable doubt‘ goes straight out of the window. Now, do not get me wrong, I am just as eager for the next cold war as the next guy, but let’s do it for the right reasons!

You see the quote “Aitkenhead said the government had reached its conclusion that Russia was responsible for the Salisbury attack by combining the laboratory’s scientific findings with information from other sources” is window dressing at best. You see, the nightmare scenario is about to get to the surface and the second quote gets us there. That would be the quote “He said: “It’s a military-grade nerve agent, which requires extremely sophisticated methods in order to create – something that’s probably only within the capabilities of a state actor.”” You see, they shot themselves in the foot there. With: ‘state actor’ we see ‘evidence’ of optional locality, yet they cannot establish that. So now we get back to the original setting that I had on that day and that was that someone had personal skin in the game. It is overkill on a very different level, whilst we know that there were other ways to do this, the choice of weapon made it emotional and governments tend to not be emotional. Now we can go all conspiracy theory on the statement ‘There’s no way that anything like that would ever have come from us or leave the four walls of our facilities‘, yet the reality is that Porter Down is not the most advanced place in Europe. In Germany Bayer HealthCare Pharmaceuticals LLC have the research locations that equal, if not surpass Porter Down. Even as we agree that this was not made in Russia, Russia is still not absolved and that is where the nightmare starts. You see a Novichok is a NBC weapon and whilst we are pushed towards the ‘state actor’ Russia, we forgot that once out, it Jinn will not get back in the bottle. The Ivan Kivelidi and Leonard Rink part took that out into the open and that happened in 1995. So for the larger part of 23 years this has been out in the open and now that someone trying to score a name for him (or her) the issue is out in the open and I am fairly certain that the UK and France (with their lovely chemical experimental places in Lyon) are now becoming an issue. These places have been unmonitored to the larger extent and someone got to be creative. In a world where the cost of living is rising someone has a commodity that the bulk of organised crime is willing to pay for and they are willing to pay through the nose. That is not withstanding the lone wolves and the terrorist cells that are getting funding from some ‘state actor’.

that is now the ball game and it is reinforced with “He said the location of manufacture could be established through “a number of different input sources which the government has access to”, adding: “Scientific evidence is only one of those sources“, so as Gary Aitkenhead is now hiding behind ‘different input sources ‘, we can see that his PD location failed to establish that and if we comprehend Novichoks than we should see that this is not a surprise, even as the sources could be basic composites, those sources are not always possible to be determined. Even as Dmitry Peskov is crying fowl play (pun intended), Russia is not out of the woods. You see even as Russia was the designer, it falls on their heads that Novichoks possibly got out into the open. The setting of responsibility seems to be clearly there, even as the papers I talked about three weeks ago shows that the executive council of the Organisation for the Prohibition of Chemical Weapons (OPCW) fumbled the ball, their own meeting minutes shows that to be the fact. In a similar light we see the quote from Boris Johnson as an issue (not merely his haircut). As we are introduced to: “When I look at the evidence, the people from Porton Down, the laboratory, they were absolutely categorical. I asked the guy myself, I said: ‘Are you sure?’ And he said: ‘There’s no doubt.’ So we have very little alternative but to take the action that we have taken” and there is the issue, because the entire setting of evidence would have taken weeks not hours, which was a clear indication for me that the entire matter had been bungled by adding ‘projection weight’ into the fold in a place where there was no lighting, no electricity and no illumination of almost any kind. In this day and age evidence by candlelight is no evidence at all.

So it is my personal belief that gives us the last quote in this and the opposition it also creates. With “Alexander Grushko, called the attack a “provocation arranged by Britain” to justify high military spending because “they need a major enemy”“, Grushko might not be wrong, but he failed to add to this that there is every chance that Russia let slip the chemical dog of war and leave it in the hands of Russian organised crime and that is the nightmare that the European State actors were not ready for. The papers of the State Advisory Board (SAB) and the OPCW gave us that part when we see the gap of well over a decade. I am also decently certain that when we ‘grill’ Vil Mirzayanov in a toaster we will learn a few additional uncomfortable truths, the kind that the media is skating around as fast as they can, and in this one instance I actually do not blame them. In the end it still makes for one awesome Matt Damon movie and in light of the shown governmental shortcomings (and adding that to the script) it might just be a billion dollar hit, which is good for whoever decides to produce it.

So even as the media focused on that one place named Shikhany where that bad demon came from, we all forget that places like Dow, Bayer, Unilever, Laboratoire de Chimie ENS de Lyon and at least three more places where the setup could possibly facilitate for its creation and that is merely in Europe, that list gets to be significantly larger when we widen the net. Someone has played a very dangerous game and it is my personal belief that the global intelligence branch was so focused on optional terror cells that they forget that organised crime has a ‘mere’ need to satisfy their need for greed in any way they can and they forgot to look into that direction. I wonder how long it will take for me to be proven right yet again. Don’t get me wrong, I would love (read: prefer) to be wrong. Yet so far that has not happened. The idea of the Russian Mafia, or any large enough organised crime group to have their fingers on the C of NBC is scary, more so than a lone wolf terrorist. Because a lone wolf is likely to get emotional and would therefor fuck up, the calculating nature of organised crime is a much harder puppy to crack.

Yet that is merely my view on the matter.

 

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Stupid after the fact

We have always heralded stupidity, some in their work sphere, and some in the private sphere. It happens. Yet, when we are lucky we get to see the rarest of events, ‘greedy and stupid’ in one neatly wrapped package. That is the view we need to take when we see the Associated Press give us the events of ‘Carlos Nuzman, president of the Brazilian Olympic committee‘. So as we are treated with “In total, 11 detention warrants were issued for people in both Brazil and France in what police dubbed “Operation Unfair Play.”” we need to wonder how this came about. Now, there is the non-existing reality of ‘honour amongst thieves’, yet when it comes to the corrupt that rule will never exist. Most of these people are merely one skip away from being a target themselves. So when we see that the associated press gives us not a lot to go on (most merely circumstantial facts). The NY Times (at https://www.nytimes.com/2017/09/08/sports/olympics/whistle-blower-says-he-told-of-rio-olympics-corruption-years-ago.html), has a lot more. With “Mr. Maleson, an outspoken critic of Mr. Nuzman, made accusations about Olympic projects and asked the I.O.C. why it had not prevented Mr. Nuzman, 75, from occupying the dual roles of leader of the Rio 2016 organizing committee and chief of Brazil’s national Olympic committee. “This is a clear conflict of interests, and the I.O.C. should never have allowed this to happen,” Mr. Maleson wrote in a Sept. 6, 2014, email to the I.O.C.’s president, Thomas Bach, and the organization’s judicial body. He contacted the I.O.C. in 2012 to accuse Mr. Nuzman of corruption and election fraud“, here we see systematic failures of organisations that grew beyond their means of comprehension. Consider the time-line. When we consider the Oxford Olympics Study 2016, with: “the outturn cost of the Sydney 2000 Summer Olympics at USD 5 billion in 2015-dollars and cost overrun at 90% in real terms. This includes sports-related costs only, that is, (i) operational costs incurred by the organizing committee for the purpose of staging the Games, e.g., expenditures for technology, transportation, workforce, administration, security, catering, ceremonies, and medical services, and (ii) direct capital costs incurred by the host city and country or private investors to build, e.g., the competition venues, the Olympic village, international broadcast center, and media and press center, which are required to host the Games. Indirect capital costs are not included, such as for road, rail, or airport infrastructure, or for hotel upgrades or other business investment incurred in preparation for the Games but not directly related to staging the Games“, The paper by Bent Flyvbjerg, Allison Stewart and Alexander Budzier (The Oxford Olympics Study 2016) shows levels of failure. The mere realisation of cost overruns that goes into multiple editions of 100% makes it a multi-billion dollar cash cow and there are too many players eager to dip their private (or is that privacy) parts into the golden troth of exploitation. Now, this does not state that Carlos Nuzman is corrupt; it merely gives us the setting. With the NY Times, we see that there is a much larger issue. The fact that there are clear records that there were issues and oppositions, whilst we now see that nothing was done, shows larger levels of failure that seem to be more about not rocking the boat, than to stop hurting the utterly broken image of the Olympics. When we consider the person linked to this, we see that Eric Leme Walther Maleson is the founder and former president of the Brazilian Ice Sports Federation has a long lasting life in sports and winner of three bronze medals in the sport, so we have a winner. This man seems to have been devoted to sports for most of his life. So it is a voice the Olympic committee should not have ignored. You see, the broken image of the Olympics, an image that went from excellence in sports towards the need for big business to promote their products under the guise of media exploitation is utterly void of spirit. Coca Cola, Dow, Intel, Samsung and Visa have changed that landscape. Agreeing to a situation that shows a growing curve of getting it all (namely the infrastructure) in place. You see, the earlier mentioned paper is important, even as we see “cost per athlete has been increasing for both the Summer Games and Winter Games, driven mainly by London 2012 and Sochi 2014. Overall, however, the changes over time are statistically non-significant for both Summer Games“, it is important as we know, or should know that the Olympics are set in three parts: ‘The event, the players and the cost of the location’. If the increase of cost per athlete had been significant, we would have had a less to go on, so with them out of the equation (and take the massive cost for Sochi 2014 away) we now have two elements: ‘The event’, which gives rise to internal corruption of stakeholders and sponsors; with the internal corruption of sponsors not in the mix (at present). We are left with the location and the stakeholders. Now, we all agree that the cost of everything goes up, but consider “15 of 19 Games (79 percent) have cost overruns above 50 percent and 9 of 19 Games (47 percent) have cost overruns above 100 percent“, now we can accept that such events will always come with the cost of business, we need to consider that ‘cost overrun‘ is merely a motto for political downplay of elements in their moment of national pride. I personally see it as an optional place where you can soften opposition with parked billions!

I believe that the paper has cornered certain Olympic elements and it cannot prove it, yet by exposing other parts as non-factorial we now see that the Olympics are a much large mess than the media is making it out to be. Even as we are focused on Carlos Nuzman, we are ignoring the elements that are part of the machine behind it. So when we see USA Today “French and Brazilian authorities said Nuzman brought together businessman Arthur Cesar de Menezes Soares Filho, and Lamine Diack, the former head of track and field’s governing body who at the time was an IOC voting member. Soares Filho’s company, Matlock Capital Group, allegedly paid Diack $2 million into a Caribbean account held by his son, Papa Massata Diack. Authorities said Lamine Diack, an influential African member from Senegal, was instrumental in organizing the African bloc of votes. The widening case implicated four-time Olympic medallist Frank Fredericks. The former sprinter from Namibia has said a near-$300,000 payment he received via Diack’s son on the day Rio won the vote was for legitimate consultancy work. Still, Fredericks lost his place leading an IOC inspection team to visit Paris and Los Angeles” these all seem legitimate elements in all this and it is not part or regarding ‘Frank Fredericks‘, I wonder how and what work he did to get the $300,000. I and many others have never been offered $300K for a consultancy job, so what does ‘legitimate’ entail? The element in this is ‘an IOC inspection team to visit Paris and Los Angeles’, you see, what would they have been privy to and exposed to? The USA today gives us that in the very last line. With “dozens of top politicians implicated in a sweeping judicial corruption investigation in which construction giant Odebrecht illegally paid billions to help win contracts” we are exposed to the cost of doing business. Paying 2 billion to gain 11 billion in contracts is merely good business and the locations still need to be constructed, the untold part in all this. Odebrecht is present in South America, Central America, North America, the Caribbean, Africa, Europe and the Middle East. They have been stepping on large toes and as such certain French players are eager to see it stop. Construction is the largest unmonitored Wild West industry remaining on the planet. Odebrecht with a value now approaching 42 billion is an issue for many players. Even as we are confronted in the US with “Howard Archer, chief economic advisor to the EY ITEM Club, reckoned Friday’s economic data indicated UK GDP growth may likely be limited to just 0.3% for the third quarter, he also acknowledged the disappointment in trade and construction output“, which might not be anything worth mentioning, unless you see it next to Odebrecht and the currently unsubstantiated channels towards a multiple billions (read: expected 2.08 billion) to get 11 billion in extra jobs, now it becomes something the American players (as well as the European ones) are getting huffy and puffy about, because if Odebrecht is getting it, they are not and that is where investigative parties get creative. So when we see “They emerged with suitcases, documents and a computer“, we need to wonder. Was the taken away party actually that stupid, or are we witnessing a new Flim Flam visitation of: watch ‘here’ whilst out of view certain deals are brokered. In all this the sponsors are still part and equally guilty. You see the sponsors let cost overruns of over 100% go and not give proper light to EVERY element in this. Merely that the local political engines were sorting it out for them (and those political players get to live with the consequences), the sponsors merely move on. As I personally see it, these sponsors are supposed to be intelligent, so this is happening with their silent approval, only when they fail to meet the targets that is set towards the costs, only then will we hear them loudly. This is exactly why Qatar 2022 remains in the news, again and again. The media is already kicking up stinks because they aren’t getting anything out of it, they are merely in a place to either accept it or move out. The Daily Mail is giving us more and more allegations and even as some smile because Qatar did not qualify for the world cup 2022, we see “Qatar’s elimination will be enjoyed by its many critics in the West who claim the emirate should never have been given the chance to host the World Cup, pointing to a lack of footballing pedigree as well as corruption and labour abuse claims“, how about these critics in the west shut up as continue to suck the tits of corruption they are currently sucking on? I am more lenient towards Christopher Davidson, who with ““Having never qualified for a World Cup before, I don’t think Qatar should have ever made the claim that it was a genuine footballing nation,” Christopher Davidson, a Middle East expert at Britain’s Durham University, told AFP” we might accept their words, yet when we consider the Jamaica bobsled team, ending up ahead of United States, Russia, Australia and France. Should we take bobsleighing away from the USA or France? We have heard 2 years of utter bullshit of these critics with supposedly showing all air and no evidence? In that same light, should we dissolve the Sunday Times this coming Monday? Remember the claim of “obtained millions of secret documents – emails, letters and bank transfers – which it alleges are proof that the disgraced Qatari football official Mohamed Bin Hammam made payments totalling US$5m (£3m) to football officials in return for their support for the Qatar bid“, so if they do not go public with all the evidence, can we force closure of the Sunday Times? Personally I find the existence of Rupert Murdoch and Martin Ivens offensive. They represent what is wrong with media today, so if they are gone, I will feel happiness. They are going with alleged and proclaimed, whilst the construction levels of corruption are happening at their front door and at that point they remain really really silent. In light of FIFA, we have seen levels of failing where the press was eagerly not rocking any boats at all, merely when big business saw it was losing out, at that point everyone screamed murder and mayhem.

These players have been stupid after the fact for much too long and as such we need to consider whether we need to overhaul the Olympics in ways never conceived before. Perhaps it will downgrade those events for the much larger extent. It will no longer be about drugging, about substance abuse or about the next mobile phone that works better when you drink Coca Cola. It will be about athletes competing for the title of who is actually the best, no sponsors, no advertisements and no billboards.

This is all still ongoing, with Qatar finishing Hamad port, we will see more and more issues rise, but as the stream for completing the WC 2022 event going straight into Qatar, we see that some players will take other venues to see what stink they can kick up. We can see the validity of France trying to aid in resolving the issue. An opportunity Turkey let fly by is now in the hands of Bertrand Besancenot, diplomatic adviser to the government. As France has close ties with Egypt and the UAE while also being a major arms supplier to Qatar and a key ally of Saudi Arabia, we see a player that is eager to find a solution for all as they greatly benefit any solution. If there is one issue, then it is the one that the UAE edition of the National brings us. With “Despite its claims of being ‘under blockade’, Qatar has also expanded shipping routes to India, Oman, Turkey and Pakistan and announced plans to raise its liquefied natural gas (LNG) output by 30 per cent in an effort to weather the boycott“, we see a dangerous turn as there is an actual danger in pushing to raise output towards 30%, as I see it, it requires certain players to circumvent larger safety settings, which could be the start of a very different disaster in Qatar. In addition, who in Al Jazeera will be part of the committee in charge for building and setting up the media centre during WC2022? It could potentially become a new Al Jazeera building merely months after the event and as such, it is an opportunity for Al Jazeera to set the bar for their competitors in the Middle East even higher. There is nothing like raising the output of your own station by 300% to truly get more visibility. In that view, as we will soon hear on how Qatar has optionally additional satellites available for all reporting parties, has anyone considered the impact of government fuelled competition? So when we are stupid behind the fact, were we not looking on what is additionally provided for? So when we are watching Tokyo bring live every match and event in hi-res to our G5 phone free of charge, has anyone considered the fact that we spend an additional $400 to get that phone ahead of schedule? So with 3-5 players getting an additional share of $20 billion for 5G on the initial launch, what is the part we were not looking at? Until the moment is there, we can understand that players like Apple, Google, Huawei and Samsung are quiet as a mouse, but all that ‘bedazzling entertainment‘ represent additional construction billions, additional satellites and longer terms benefits not charged or taxed, all under the guise of: ‘sports’. If it is true that we see the first pilots go live during Pyeongchang, and we will all readily accept that this will be the shining moment of Samsung (the local player there) as it shows what more we can expect from becoming the mobile entrepreneur, what do you think that Tokyo (2020), Qatar (2022), Beijing (2022) and Paris (2024) will bring? These 4 will have a growing infrastructure need which means that construction will grow even further. Four events that can only be done and almost literally set in stone by the strongest and largest players in construction, the instant moment to make several billions merely by being at the right place. That is what others fear Odebrecht could do. Larger players that are at present not ready to the extent that they needed to be for the upcoming considerations. Even as we see the South American headlines regarding Odebrecht, we need to realise that Odebrecht is everywhere. In that, it is: ‘who’s who in Legal’ that brings the ending gem to all this. With “Big-ticket cases involving the likes of Rolls-Royce, Petrobras, Odebrecht and Barclays remain at the forefront of the international corporate crime market, encompassing both corporate and individual defence and therefore keeping a vast number of lawyers across the world exceptionally busy. It is a trend that the majority of lawyers canvassed during our research see no sign of abating, as the fight for transparency and the activities of enforcement agencies intensify” we are shown to the cost of doing business and Odebrecht is not alone and it is not evil, the world changed yet the players on other sides remains stoic and unmoving, now that they are no longer regarded as people who matter, they now shout foul and demand action. So as we see the greedy idiots trying one more tantrum to get the WC away from Qatar, we need to see that the foundation of sports have become rotten and corrupt, the foundations are falling because the structure were never adhering to the reality of doing business. Merely a presentation from an outdated PowerPoint shows that what we saw and what we believe was never a reality. So as the media hides behind claims and allegations stating that the entire system is corrupt and sick, we might argue that the media has labelled themselves as healers seeing what is wrong whilst they are merely the hypochondriacs in this game; seeing and reporting on sickness whilst they have no medical degree or knowledge of the symptoms, or claiming to have the results but are unwilling to make them public. Hiding behind documents that never see the light of day, they proclaim exist, whilst not presenting the evidence, all whilst they herald politicians who in the same air and at that same moment present the acceptance of the ‘invoice of buildings’ that ended up being 100% more expensive as it was for the good of sports. Only after the fact, when the dust settles will some ask questions and do we see that people like Carlos Nuzman, guilty or not being towed away, that whilst questions were asked years before the event. With 5 large events coming up, with close to a trillion at stake, sponsors and stakeholders will not ask questions until targets are not met, or are close to being a risk of not making it. The media will remain on the foreground silent ‘awaiting‘ evidence, merely speculating at times, whilst shouting on behalf of others when those ‘friends’ (read: advertisers) have too much to lose. Greed driven media, this is exactly why people like Rupert Murdoch and Martin Ivens should be discontinued. In the end they are merely in it for the circulation at best and personal greed at worst.

We can all be stupid after the fact, which includes me. Yet when I am I will be in a state of ‘Wow, I so did not see that coming!‘ and I will to improve the way I see things, whilst the others are playing another iteration of ‘the next wave’ to fill their pockets. It sets me apart as I want improvements to a system that could be good and they merely want continuation of their luxurious way of life.

I still believe that certain players will push for the change of Qatar 2022. Yet after that, after it happens, when evidence lacked, we should demand their mandatory retirement from income and public life, and those sponsors should be barred from global sport sponsoring events forever. I wonder how many politicians will turn out to be a mere representation of cowardice at that point in time, trying to find some compromise that their way of life finds acceptable?

 

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Democracies are decided through Income

It has been a week, and there is a mountain of events evolving, many all about how a second referendum is needed and in addition to that, the amount of issues that are now surfacing. First we need to take a look at the valid parts. A valid part was seen on Sunday (at https://www.theguardian.com/law/2016/jul/03/parliament-must-decide-whether-or-not-to-leave-the-eu-say-lawyers), where we see ‘Law firm says article 50 cannot be triggered without full debate and vote by parliament‘, which is fair enough. Let’s face it, the people have voted on what they wanted, but in reality, Any Referendum is not legally binding, so legally the Government can ignore the results. Yet, for the Government to ignore such a massive size of a population seems to be a weird approach to democracy. Does the Law firm have a case? The quote “A prominent law firm is taking pre-emptive legal action against the government, following the EU referendum result, to try to ensure article 50 is not triggered without an act of parliament“, which is fair enough, yet this is followed by “on behalf of an anonymous group of clients, solicitors at Mishcon de Reya have been in contact with government lawyers to seek assurances over the process, and plan to pursue it through the courts if they are not satisfied“. I wonder who these ‘so called’ anonymous clients are, perhaps the banks who are now freaking out?

Yet, issues aside, how strong is this case?

First, the current government called for the referendum. Those who sit in the House of Commons called for the referendum and 72.2% of the people reacted and voted, in the end 51.89% were in favour of Brexit!

Now, we see all these new groups, all trying to create mayhem, all crying like the little bitches they are. Boo hoo hoo, so unfair, we want a second vote! It is utterly pathetic. Yet, there are a few issues that should not be ignored. The main reasons this all got started is that certain players took a stand. First there is Nigel Farage who started it and is now resigning as UKIP Leader, he apparently wants his life back. We can argue whether we have pressure issues. Perhaps I should step in as the new leader of UKIP, although, I am and will remain a Conservative. I just have an issue with people who desert when the actual work needs to be done. Second is Boris Johnson, one of the main players in Brexit, he too now seems to be turning his back on the entire process. Yet in all this the votes are still done and many of them were either Labour, Conservatives, Lib Dems and pretty much all members of UKIP. The issues is shown all over the UK. Work must now be done, yet we see a shift, we suddenly see the issues rise after the vote. Is it not interesting how we are all getting played?

Remember the voices of Grexit, how parties were all considering Grexit and how we were being played, only to learn well over a year later that expulsion from the EU was never an option, only voluntary exit is an option! Now that the UK decided to exit it voluntary, we see a massive wave of business people and people in the financial and legal industry making things near impossible to continue. No matter how we see these facts, the issue raised by the solicitors at Mishcon de Reya remains valid. Yet, is it not interesting how none of this was clearly stated all over the place before the vote? Is it not interesting that the media seems to have broomed that interesting part under the nearest rug?

Now consider the quote “The outcome of the referendum itself is not legally binding and for the current or future prime minister to invoke article 50 without the approval of parliament is unlawful“, is it not interesting how that part is equally not brought to light before the vote? It seems to me that the people of England have been played. A vote, whilst the players knew that the referendum was not even the beginning to the change. We always knew that there was more in play and as such the Brexit path was always going to take some time, yet to what extent should we see the path that the UK faces?

Now, I regard the part we see from Mishcon de Reya to be possibly very valid. Yet is that in other cases equally so? In opposition there is the article ‘Nick Clegg calls for general election before article 50 is activated’ (at http://www.theguardian.com/politics/2016/jul/03/nick-clegg-general-election-article-50-activated-eu-referendum). My initial question becomes “Wasn’t he some politician in days gone past?” And of course, I would be right, it is the former leader of the Lib Dems, not Tim Farron mind you, who is now calling for an election before Article 50 is enacted. The quote “Our country is in a tailspin. An election of a new parliament in which MPs act responsibly to manage our historic divorce from the EU is the only way to forge some order out of the present chaos” gives the impression that we are dealing with some version of Captain Caveman. Consider the quote ‘a new parliament in which MPs act responsibly‘, so is there something wrong with the current parliament? Then we get the quote “before people have had an opportunity to cast a judgment on what life would actually look like outside the EU would be deeply undemocratic“. Eh, was that not what the referendum was all about? People made the vote. Perhaps Nick is now getting active because his daddy was the Chairman of a bank? Perhaps the banks are truly getting scared of the impact Brexit is starting to have on the Dollar and the Dow? This is perhaps speculation on my side, but only to a small degree.

In that regard all the elements are taking turns for the comical. When we see in addition Tony Blair making the quote “for as long as it takes to get an idea of how the other side looks”, I wonder how long parliament reconvened and started re-elections when the UK had WW1 and WW2 to consider. It seems that the players who were not ready to believe the danger that an irresponsible EU had been bringing that the people have had enough and now they are all reconvening for the friends they have in the banks, their friends in big business. As I see it, a wave of people panicking, all in fear of losing the Status Quo, a clear fear that was given in many occasions and the strongest by Mark Carney, Governor of the Bank of England in his presentation to the House of Lords. Too many people complacent on the Status Quo, relying on people not wanting change, now all screaming bloody murder!

That is not the scenario we can afford and it is one that many in the financial industry are hoping for, because the EU cannot be drained as much and it will stop soon thereafter when the EU buckles. A scenario, with Frexit on the horizon that might not be avoided.

Yet there is another item to link here. It is shown in the article discussing the departure of Nigel Farage (at http://www.theguardian.com/politics/commentisfree/2016/jul/04/the-guardian-view-on-nigel-farages-resignation-an-unserious-man-but-a-serious-party), you see the quote given in there is “Yet they never once said what leaving would actually look like. They mocked anyone who expressed concerns“, yes, that is true, mainly because nobody had a clue what would be the result. The presentation at the House of Lords by Mark Carney already implied it. There was no way of knowing and it had never been done before. Yet in all of that the UK stood in a better place than France will be. The UK had remained with the Pound, so this sterling currency has the ability to bounce back fast and remain sterling in more than one way. The article than starts to rely on what I regard to be intentional miscommunication. An opinion article devoid of identity, an editorial, so can we state now that it is Katharine Viner who is now intentionally misdirecting the audience? You see the quote “After 23 June it can no longer parrot the old cry that everything will be better if we are out of Europe. We are out of Europe. So what does Ukip stand for now?“, You see, there is still a likely truth that leaving the EU will hold better results down the line for the UK, but not immediate, that was ALWAYS a given! And the UK is not ‘out of Europe’, it is now merely in the process of seceding from the EU, which is another matter entirely. This path will take time and there are unknowns. It is likely that if played right the UKIP could grow massively, but that requires Nigel’s A-game, a part he is not playing and perhaps his knowledge on how to play an A-game is equally a mystery to him, I do not know.

What I do know is that the Guardian identity less is equally contemptible as they make Nigel Farage out to be, or Boris Johnson for that matter. What is interesting is the quote at the very end, there is a ring of truth in there, but not one the ‘editorial’ is trying to imbue. The quote “If the next Ukip leader possesses the seriousness that Mr Farage ultimately lacked, the consequences could be profound and deeply worrying“, why is that?

You see, nationalism is often treated as a dirty word, but is that true? You see one issue the EU pushed was some open border policy hoping that a blending of cultures would all make it one grey, one shade of ‘whatever’, large corporations were banking on it as they pushed debts through every European nation through political representation. Yet, the UK is and should be a proud nation, sometimes proud for the wrong reasons or in the wrong light of day, but it has a genuine right to pride, as does France, Germany and Italy. The people behind the screens forgot about that and the pushback is massive in all 4 nations. Frexit could be next. The NY Times is saying it won’t be so (at http://www.nytimes.com/2016/07/04/opinion/why-frexit-wont-happen.html), didn’t they state the same about Brexit? You see, I am not certain it will happen, but it is a lot more realistic than Brexit was. The French population that has had enough of the EU has surpassed 61%, making it a strong majority at present. That is only the population of France, the power players are now in a direct confrontation with Germany. Any talks between France and Germany have been problematic to say the least in the past, but that was with the UK as a stabilising element, without the UK those two will come to blow sooner rather than later and Italy could be the wildcard here too. Unless it finds levels of stability the EU talks will take an interesting dimension soon enough.

There is one element that makes the NY Times the punching hammer to take notice of. The quote “Now comes the naked truth: For the past 10 years, the European Union has failed to deliver on the main objective it was set up to achieve: shielding its citizens from insecurity. Over the past few days, European leaders, in a state of shock, have hastily identified three priorities on which to focus if they want to save their union: security, migration and economic growth“, it is part of the issues that drove Brexit. Not immigration, not racism, but the realisation that the EU is not delivering, whilst its ECB is stimulating national governmental debts by spending trillions. With ‘investors’ looking towards Mario Draghi on opening new stimulus packages, we all need to wonder why is allowed to take this path. It appears that banks are back in risk taking mode, the ECB is ready to spend another trillion (exact amount is actually not known), yet no one is asking the questions that need to be asked, the reason that got us to Brexit and will soon push forward Frexit stronger and stronger. The mere inability to properly budget within governments and Mario Draghi playing ‘Spending Clause’ in July should worry the population of the EU at large.

The Guardian editorial decided not to take any of that on board, mainly because bashing Farage is still the easiest job to do and the last thing they want is to illuminate that democracy is not set to the most votes, it is set to who has the most influential income to push the votes of others, which was never any form of democracy, not in my book at least.

 

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About America, chapter 11

This is a short story; it is not part of a novel where you have seen the first 10 chapters. This is in all seriousness an issue when we consider Code of Laws of the United States, United States Code, number 11 deals with bankruptcy.

So why take my word for this? Why am I right, when every journalist, every economist claims that this is not the case? How diluted am I to think this?

These are all valid question. Now consider the facts. The US treasury (from various sources) had collected in 2013 around 2,700 billion dollars. This seems like a lot, yet the budget as President Obama stipulated in 2012, the budget had spending set to around 3,800 billion dollar, so the US is already 1 trillion short. If we consider the total US debt at 18 trillion, meaning 18,000 billion, then the total debt would need 100% of all taxation for 6 years, an act that is totally unrealistic.

Now take this to your own homestead. I remember that I could never get a loan for a mortgage for more than 4 annual incomes. Now, this is like comparing apples to oranges, but is my train of thought so far out of bounds? It is my view that these seemingly ‘clever’ economists have been rolling their gambling dice in several ways for too long.

Consider the Dow Jones Index. We get fed the line that the economy is good, because 30 companies are doing ‘well’. Ever since the ‘dip’ it took in 2009 to 6547 (at http://stockcharts.com/freecharts/historical/djia1900.html), the Dow has ‘restored’ itself to 16743 (as per now). So, in the time when all was well, before the first economic collapse in 2004, when the Dow was 11722, and until the second collapse in 2008 when the Dow went from 14164 to 6547 in 2009, we now are in a time when many in the US are down on their luck and finances, when many all over the world are feeling the brunt of recession and other financial calamities, the almighty Dow is at 16743.

Is anyone considering the notion on how dislodged the entire Dow Jones concept is in regards to the reality of life?

Consider the following information:

– Amazon is buying Twitch for a billion Dollars in cash (at http://www.theverge.com/2014/8/25/6066509/why-it-makes-sense-for-amazon-to-buy-twitch)

– Roche to buy U.S. biotech firm InterMune for $8.3 billion in cash (at http://www.reuters.com/article/2014/08/24/us-intermune-roche-idUSKBN0GO0PI20140824)

These are two of several (read dozens) of large shopping sprees, throwing cash around like it is nothing and as these billions come into the other parties’ hands, what taxation ends up getting paid? This is at the heart of the founding issue that should keep our minds busy ‘Is America Bankrupt?

There are two sides. First there is the Sovereign Default. No matter how you twist or turn it, if a nation cannot pay its debt, it will default and should be seen bankrupt. A good example is Greece. After Europe bailed out a nation with 11 million people, by ‘giving’ it well over 300 billion, it is still complaining. The reality is that it should have been allowed to go under in bankruptcy. Not because I like it, or because I have anything against Greece (in all honesty, Crete is one of the loveliest places I ever saw). The natural cycle of economy has been ‘arranged’ (I would call it mismanaged) into cycles of only good news. You talk to any farmer, they will all tell you that no field can survive on spring and summer alone, nature is all about balance and as we threw away balance, we started to undo our own prosperity.

It is said that a business is stated as ‘insolvent’ when its debts exceed its assets.

Is that not the case here? I have stated in the past that I have reservations about the true value of LIBOR.

If we continue the question: “How much money they need to borrow from their peers to plug any holes in their balance sheets and if they have an excess of available cash, how much they can afford to lend“, which is at the heart of LIBOR (at http://citywire.co.uk/money/qanda-what-is-libor-and-what-did-barclays-do-to-it/a600479), considering that the margins had been played with in the last two years, is the idea that the total valued amount has also been tweaked?

This is all based upon an availability of actual existing Cash. But the entire system is based upon a certain value of assets and goods, as I personally see it, I do not trust that list as it is dependent on the ego of honest bankers, which seems an impossible concept and no one can produce at any given moment an exact list of it. So what value exists in all reality (not in the eager mind of a commission driven banker)?

We now get back to the Dow Jones Index. If we consider the past (when life appeared good) and the now where most of have lost a lot (if not all), then is that index not artificially driven upwards? This is not just my view; several parties, including USA Today (at http://www.usatoday.com/story/opinion/2013/03/04/federal-reserve–quantitative-easing/1963539/) are showing us a view that shows an economic system that is driven upwards in artificial ways. So we now get a different view. Are all these mergers and multi-billion dollar deals we see regularly now on TV about growth, or about the top of the US industry that seems to leave the sinking ships before the system collapses.

This is at the centre of a few issues, where the US is rallying for ‘support’ whilst not showing one iota of accountability to get its budget under control. The last part is at the heart of the need to call the USA bankrupt (not because I desire it). It will cost many a lot, but is growth not depending on the downfall of others? If we consider that all together we are 100%, does our growth not depend on the need that someone else does less? That intertwining, where we ignore basic foundations that growth is not eternal, we see that there is a consequence to overinflating (yes, this also applies to my ego).

Yet, economists have time and time again stated that there is more here and there (whilst they point to virtual spaces). Now we see the heart of the problem, who has the actual 18 trillion that the US is down for? If we look at the oil links, should USA perhaps mean ‘Unionized Saudi Arabia‘? If we consider the real wealth, are they not the ones holding the oil reserves (one of the big four) and as such, the outstanding debt? I know it is not that simple, it never is, but when we ask a summary of where the debt lies; we will get some clever list from a highly educated economist and some excuse ‘that it is all a lot more complex then it looks‘.

He is not incorrect, but he is also not telling you who hold the 18 trillion the US had been spending in one way or another and as such, the realisation should now be upon you. If America is bankrupt, then what will happen next? Japan will pretty much be permanently out of commission and I reckon the UK will be in very deep waters, but we the Commonwealth must find a way to go it together if we are to survive.

It seems to me that America never realised that lesson, like several others, they all used to max out a credit card in virtual space whilst the actual, supporting currency is not there, so why has America not been declared bankrupt?

I reckon soon enough we will get more and more long winded talks, but in the end no one is sayng anything because those who will be making the speeches are at the heart of what went wrong and no one wants to hold on to that guilt when those left without their house ask them the question ‘where are my savings?‘.

 

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the upcoming currency

We have seen many events this last year. For the most, in many nations it had all been about hardship, bills, Economic downfall and more hardship. Even though the UK said the hard times are over, it is clear that many see and feel that the hard times are far from over and even though the economy is slowly returning, that moment of less personal pressure is nowhere near at the moment. The same could be said for the US. They are worse off (source at http://money.cnn.com/2013/09/17/news/economy/poverty-income/ ). This means that in the US, one in 7 is now in poverty. I thought that this was a unique number, but it seems that 1983 and 1993 had similar numbers; I actually had not known that. What makes this worse is that in 1993 the US debt was just over 4 trillion and in 1983 it was a third of that ($1.3T). So when someone tells you that it was like this in the past and it will all be better, then he/she will be lying to you.

Why does it matter?

The issue I have is that the LA Times reported this (at http://www.latimes.com/business/money/#axzz2p7uudgwk) ‘Dow finishes year up 26.5% in record year for stocks

Now, many of you (me included) have made the same mistake, a good Dow does not make for a good economy. If so, then one in seven would not be in poverty and the US would not be down well over 17 trillion dollars. This statement is one that I cannot stand behind, because the evidence is strongly overwhelming. Consider what many might have seen on the news (Sky News, Fox News, CNN, BBC World). It seems that staff at Wal-Mart is not doing too good. (at http://articles.latimes.com/2013/nov/20/news/la-ol-walmart-thanksgiving-living-wage-poverty-20131120). So we read that “its Canton, Ohio, store decided to organize a Thanksgiving food drive for fellow workers.” It was also nice that a celebrity like Ashton Kutcher is outraged over this. So, we see that Dow is up, because Wal-Mart is paying below the poverty line. How is this any representation of a fair America?

Under these conditions, the only fair thing Americans can do is to avoid Wal-Mart and shop at their local shops. It is quite simple, when Wal-Mart loses a massive size of their $17 billion revenue, when this money goes to local shops, they will be hiring staff. It might be a win/win situation for those currently on poverty. The MSNBC article (at http://www.msnbc.com/the-ed-show/leaked-document-shows-what-walmart-really-pay) shows a grim situation. Is it enough to see it as exploitation at best or slave labour in a slightly more realistic setting?

There is however more. It seems that McDonald’s is on that same horse. (at http://www.theguardian.com/world/2013/aug/10/us-fast-food-protests-wages). Whether this is just a US problem remains to be seen. There are all kinds of jokes one could make on slave labor and an African American president, but you get the idea. There is no way that this does not hit him in any way as this happened on his watch! The question becomes how awake has he been whilst this was happening? When at least 6% of the Dow is created due to slave labour, it seems to me that questions should be asked on all matter of levels (which they are not). It is in that light that I find the Dow results very distasteful and wholly unacceptable.

When places like Coca-Cola pay 9% above the market rate and they are doing fine, why can’t others follow that same example? I must admit that 9% is indeed really good, but it is possible that Coca-Cola has evidence that this yields better and more loyal results. ‘Good for Coke!‘ I say (that slogan is likely to do very well in New York, L.A. and Amsterdam).

So, how is it all related to an upcoming currency? Well, is it that hard to believe that Wall Street will soon introduce the Dow Dollar? I am not talking about the Dow Jones FXCM Dollar Index, no I am talking about an actual physical currency. When (not if) America faces a total collapse, as any bankrupt nation is likely to face, then what will happen to the coinage on a global scale? Do not for one second think that Wall Street is waiting for that to happen, it might be that they have backup plans in place at this very moment. There will be a debate whether that coinage currently has an actual name. If you think that this is not happening, then think again. Do you think that a group of power players controlling Wall Street, who decide the fate of Trillions (of which hundreds of millions are theirs) do not have an alternative in place?

The sad part is that these Trillions are likely gained through tax shelters and tax havens. This is for now all perfectly legal, but when one in seven is in poverty, it shows a massive imbalance between the have’s and the have not’s. In addition, consider that the 442 billionaires the US have, several members are there because of their share of Wal-Mart. In opposition we see the owners of Coca Cola and Mars (the candy) and they made the list whilst paying their staff really well, so apparently slave labour versus a good product shows that a good product gets you there too!

Back to the coinage!

So this new dollar, which by the way is unlikely to be some ‘Bit-coin’!

I have had my issues with this on several levels as I wrote in the Wall Street Journal last July, where I wrote “until we can see some level of genuine foundation the fear remains that bitcoin has a danger to become the new detergent to launder all kinds of currencies. If that does happen, when the bitcoin is regarded by governments as devalued at 94%, what would be left?

That part is supported by an article last month (at http://www.theguardian.com/commentisfree/2013/nov/18/bitcoin-senate-hearings-regulation), the Guardian also published this in addition at http://www.theguardian.com/technology/2013/dec/10/apple-blocks-bitcoin-payments-on-secure-messaging-app-gliph. So, there is an issue with a virtual currency! In all fairness, when a ‘bank’ changes value of a coin, where $400 in Bit-coin rises to $250,000 to those same coins within a few years, something is definitely wrong. Money doesn’t grow and yes we need money to make money, but it will never grow to this extent. This looks like all the makings of a new marketed pyramid scheme and after these fortunate ones are done, we will see a massive collapse, because it is all virtual currency. Then what? Who will then be held accountable? Currency not supported by any valued mint (like Gold as currency used to be set against) is likely to yield a catastrophic result to the owners.

This brings us back to that Dow Dollar. At present, the US bankruptcy remains a reality and when that happens, where will currency go? Let us not forget that the US debt ceiling becomes a reality again in February 2014. Nothing was ever resolved and the US is still no closer to getting its own house in order. The moment this escalates and fear of the future becomes a reality, stocks will go down quicker than the German Deutschmark in 1923. Can it all be prevented?

First of all, when an economy is getting better, being tax accountable is a first, the fact that through economic and international lawyering this is no longer a case remains to be fixed. There have been too many delays on that path. In my (debatable) solution all members of the Dow 30 will make an annual 1% contribution to the US treasury. If you as a member get this prestige, you get to pay for it! It is a founding principle that actually came from the United States. On the other side, the government with that accepts responsibility to become more than just budget neutral. Overspending should end and the US must not be allowed to spend above the amount of taxation collected. So no 100.01%, when this budget is reached, IT SHUTS DOWN COMPLETELY!

This means also means that politicians would officially be held accountable for their budgets and will serve time in prison when they fail (that should make an immediate rise to able personnel instead of these ‘friend of the senator’ positions). Lastly, that 1% contribution goes towards paying off the deficit. These funds are not allowed in any way to be used towards some payment or budgeting scheme.

You see, when people behind Wal-Mart and McDonalds make so much money that they get to be on the billionaires list, whilst their staff members are in poverty; we need to shake their houses in order. Sending invoices are a first step on that path. If they do not comply, they go to jail and their companies become nationalised. I know, it is extreme, but consider the validity of justice when a billionaire actually goes to jail (something that seems to only happen in Russia), it might make them clean up their act and it also gives rise a first anti-greed wave. This is something that had been long overdue.

So will this so called ‘Dow Dollar’ become reality? Yes! It will happen 0.021 seconds (roughly) after imminent bankruptcy is declared by the US treasurer (which is likely to be done from a plane or an airport location).

Have a nice 2014 and keep an eye on your savings!

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It hurts every time, but we love it

So, in this fifth part, we will have a little look at the UK banks that were hit lately. This is a progression from previous parts. Not because they were linked (they might be, but I gave no deeper look at that). The important reason is that the banks are doing more than setting a trend. This is all a continuation when banks became more then service providing organisation. They became profit driven. Instead of the normal profit of continuation it became driven to the optional profit of speculation. Even though most banks would argue that this is the way to go, the Netherlands showed how their banks lost to the amount of 40 billion Euros. This pretty much covers more their current deficit. There is also the continuation of thought on the decision makers. How can we be allowed to sit down and see how a group of less than 100 took decisions that would cripple a nation on narrated limitations like ‘miscommunications’, ‘blunders’ and sheer incompetence? More astounding is that following the acts, some decided to look at advices from corporations losing utter fortunes (Source: Telegraaf, 31st October 2012).

This is not just about the fact that we are dependent on a very small group of people. We are confronted that they are just people, with needs and dark desires. A group having ‘ideal’ dreams and writing checks a lot larger than their ego could ever cover.

So what to do?

Let’s take a look at three groups.
The Bank of Scotland, The Lloyds banking group (of which the Bank of Scotland is now a part) and Barclays.

In 2012 the LIBOR scandal got a hold of many (London InterBank Offered Rate), There were accusations and proof was given. As LIBOR affects the US market and it was seen as a violation of American law. The UK version of the Telegraph reported that the chancellor had made it clear that any financial penalty imposed by American regulators must be paid for by bankers, and not the taxpayer. (Source: The Telegraph).

From my side the first thought was that it might be nice if the US cleans up its own side first. I wonder how much money they reclaimed from upper management at Lehman Brothers? Interesting is the information, that those upper level ‘demons’ (aka members of the board of directors) got overall half a billion dollars in bonuses. How much was reclaimed? An example of this is Erin Callan (former CFO Lehman Brothers) who did get a nice payout and if I can believe the NY Times a new husband and moved to a high position with Credit Suisse. Now the next is really important. SHE BROKE NO LAWS! (As far as we know). Also, there does not seem to be any evidence of any kind that she lied. She has been portrayed as a ‘girl’ who was in over her head. That is hard for me to comment on, but it does raise certain questions. There seems to be a board of directors who seem to play the multi-billion dollar game like it is a round of Parcheesi. To debunk a trillion dollar company and then walk away with half a billion should result in more than just global questions. That part is important as at the end there were dealings with Barclays who had a small non illegal windfall. Now business is business, yet it does show that a certain game that was played in the US seems to be played in the UK to the extent that is now the LIBOR scandal.

 

How does this link to the Netherlands and the UK?

Well, look at the reports on how percentage bases are calculated and how it reflects not on ACTUAL debt, but based on how these debts relate to Gross National Product and how these things influence the DOW. So it is in the interest for all to keep certain numbers high. Especially for the greed driven! This is the real problem from my train of thought. Considering what I wrote over the last weeks means that the Greedy need the DOW index to move higher and higher. Yet, all the numbers give me an indication, especially when we see a global depression that those numbers should not go up the way they do. It feels to me that other factors are influencing it all. The US with the fiscal cliff (Fiscal Abyss seems more accurate). Many EEC nations are in massive debt, and then hit with waves of unemployment, higher costs, declining standard of living and no direct prospect that this will improve. People are not spending the way they did. The housing market is breaking down in several nations and so on.

So consider the next nightmare. If the DOW index drops 4,000 points to 10,000. What then? Too many people seem to ignore parts, others want to control parts and those in charge want to rule, so when it does collapse, they maintain whilst none survive.

This same view seems to be happening now in the UK. The controlling of percentages to LIBOR is only a first. A lot of these reports like the one the BBC showed in August 2012 mentioned that this system must change. This was spoken by Martin Wheatley of the Financial Services Authority. He also mentioned discrepancies going back to 1991. This means that some level of manipulation has been going on for over 20 years. So is this about ACTUAL justice, or is it that the US had become SO desperate for as strong as a hand as possible that they pulled a Benedict Arnold against their own banking ‘buddies’. For the UK readers, Benedict Arnold is the American version of Edward Devenney.

Another party in LIBOR is Barclays. They dealt in services that rely on LIBOR, by intentional misrepresenting information they got better deals and therefor more profits. The problem is that using Derivatives in this way and the involved banks’ lending money to each other it becomes a musical chair exercise in passing pieces of paper from one bank to the other. From my viewpoint it could be seen as adding funny money to the internal till and amassing profits from something that was not there. And as they moved hand to hand, they kept the margin of profit that LIBOR offers.

So the following step is reforming this. The UK government seems to be happy to accept all upgrades that Martin Wheatley suggested. However, Reuters reported on the 28th of September 2012 that these changes would add volatility to the short term markets. They also reported that the FSA (the place Martin Wheatley is from) mentions that this standard is too entrenched to replace. It seems that banks on a global scale are too afraid to rock any boat. Is it a fear that their united spread sheets are altered to remove their layer of manipulating? If that is so then their powers would soon be diminished. It seems clear to me that markets are manipulated on several levels and those in charge are in no mood to change any of it. That situation becomes a lot more volatile when you consider the US debt of 17 trillion dollars in addition to the Fiscal Abyss. Those two, when a change is set might mean that the US could be bankrupted overnight.

 

Any claim that this will never happen is slightly moot. Here we now get back to the Netherlands where the same was claimed of the SNS Bank. It is now nationalised. Many nations should now be contemplating massive change to remove the power of banks as we can no longer afford THEIR life style.

It is interesting that the UK is under such scrutiny by the US, yet the US is nowhere near on cleaning its own banks (in my humble opinion). This does not mean that nothing should be done. And it does not mean that they should not have done anything. There is however the question on how those could be improved (as I have asked myself and on my blog in several situations).

So we get to the Lloyds banking group. In January 2013, 8 people were charged connected to a $55,000,000 corruption scandal. (Source: AP). This is not the only issue. Ian Fraser, an award winning Journalist, who reported amongst others for the BBC and Thomson Reuters has a lot more on his blog http://www.ianfraser.org. If anyone wants to question his education? Well the man was ‘shaped’ by St. Andrews (the University, not the Saint), which means he should be regarded as a member of the highest echelon in his profession. In addition, when we look at the board of directors of the banks we mentioned earlier, then we see more than just casual links. Some of them had positions at Citigroup, the FSA, The Royal Bank of Scotland, the US Treasury, JP Morgan Chase, International Swaps and Derivatives Association (ISDA) and more. This seems to remain a very small inner circle in-crowd.

It is clear that a lot more has happened and even more is happening. This is not even the complete story, but we have clear evidence spanning 2 continents that several nations have a collection of banks where it is all about the profit. Looking at the ‘blunders’ where they were willing to bet the house on all of it. So I feel that clear, visible and vocal oversight of these parties is a given essential need!

Please consider this last part. The UK banks involved in regard to the corruption case and the LIBOR scandal consists of 4 of the 5 large UK banks. It sounds harsh however this implies 80% of the UK banks have prosecutable issues. This is more than a scary statistic. I would take a guess that these 4 banks are controlled by boards of directors and they would add up to less than 75 persons. What happens when they in the same fashion as the Dutch SNS agree that ‘blunders’ were made? Could the UK survive a hit that large? More important will be the question whether the results also impact their siblings Canada and Australia?

Several questions and I expect that no clear answers will be forthcoming (any day soon). A political step could be in the form of carefully phrased denials and years of closed door meetings.

For me the conclusion from what I have seen over the last few weeks is that oversight is a must, there should be a clear list of definitions that the financial world must openly agree on and that there must be an open list of those involved in those standards.

As I close this final part of my reflections, the hope is that you enjoyed these five blogs.

These series were my thoughts on the Financial Banking Blunders as set in:

  • Greed and the lack of common sense.
  • Time for another collapse.
  • The future of greed.
  • A solution by annexing greed?
  • It hurts every time, but we love it.

I will try to take an evolving look at banking laws in a future blog.

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Time for another collapse

We have all seen the state of matters on many nations. Including Australia loads of nations are in a massive downturn. America keeps on spending money they do not have. Spain is fighting a massive wall of unemployed (over 24%). Greece is fighting just about everything from no longer payable debts and unemployment figures to phantoms of their past. In addition to this France, Italy and Ireland have issues with both debts and people somewhat not working. Last but not least, the Dutch economy is at a low and they are about to change the current Monarch. Add to this the referendum that is at the heart of the UK, will they remain in the EEC. All these are questions that hold matters that stop an upturn of their economy. These are bleak times indeed.

So can anyone explain to me that the Dow keeps rising? (Seriously, I am not an economist!)

Apart from a dip around January 8th there is no real upturn in the US. They have their issues around budgets, around 7.8% in America does not have a job, their export is not what it needs to be and it seems that their numbers are not what they appear to be. Citing a newscast where the following was stated “The US unemployment rate falls to 7.7% thanks to the reduction in the labour force.” So from that we could consider that yes, there are less unemployed, those people did not get a job, they became pensioners. What other misrepresentations are they making? Now, let’s be honest. They are not doing anything wrong, not just because it is done by all, but because they are clinically speaking the truth. Yet, considering these truths, the question remains. Why is the Dow Index going up and up and up?

Are we about to get hit with a 3000 point drop, and if so, who’s wealth will fall away, the banks and bankers or the retirement funds? It feels like America has adopted a Japanese way. The way of the ‘Yes’ people! Hai!

Americans shy away from bad news. They go play Possum, they ignore, they reject. There is no fight for improvement, there is no middle ground. It is only Victory or Apathy, and victory is a term used often and mostly never deserved. Lately we see messages like this: “Just one hour before midnight on New Year’s Day, the U.S. House of Representatives approved a one-year renewal of federally-funded Emergency Unemployment Compensation (EUC)”. Decisions of the 11th hour! Even issues on the fiscal gap are deadlocked. Moving forward is not just hard to do, it seems impossible to some to make the hard calls. If they like victory stories that much, they should take a look at Germany. Just so that readers are up to speed, let’s take a little walk on the historical side.

June 7th 2010 “The German government on Monday announced plans to reduce spending by €80 billion ($95.7 billion) by 2014 in the largest package of cuts since World War II” (Source: Die Spiegel)

There was a lot of commotion. Several nations called it overreaction, some called it nonsense. In an IEX article on Macro economy they all mentioned how Germany is such a worry. They even quoted George Soros as a source of it as he spoke at a University in Berlin. How irresponsible these cut backs were. Yet, now Germany has a strong economy, much stronger than anyone else in Europe. I wonder if they saw through the Megalomania of George Soros. It had been advocated by people like Glenn Beck for a while. It seems to me that on a planet of debt, those who own money, those who are in the favour of banks would be in charge of the planet. It is one way of making governments flaccid to your actions; they desperately need what you could spend in their country.

Yet, I am digressing from the issue, which remains the Dow index. Germany remains the only one who fought back these debts with success. It stands to reason that the Dow should not be this strong. Consider that the Dow is fully called “The Dow Jones Industrial Average”. Now consider the unemployment levels which is up and the spending ability which is down. Both elements are off on a global scale.

So how come that this index keeps on rising? What artificial flavours are added?

Now consider that the debt of most nations is based upon Gross National Product (GNP), now consider this falls, which means that the debt quickly rises as per example below.

GNP = $1B, debt is set at 3%, which means that the actual debt is $30M.

Now consider that next year, the GNP is only $700M, which means with a debt of $30M the debt is now 4.28%. This is far more than their agreed and allowed margins of debt. Is this why the Dow is rising? To keep debt percentages low? Also consider that most debts are not millions, but often billions, and in one case many trillions.

You might wonder. Does this matter? Yes, it does for two reasons.

1. The same applied to people with debts in the US. And then in 2004-2008 one in six in the US lost their houses as their spread sheets stated an overly large debt. Why should this not apply to governments? Why are they not accountable for their actions (or better inactions).

2. We seem to be getting that ‘we are still OK’ message, while the impression seems to be that some people are cooking the books (or slightly more precise, they seem to be cooking the percentages).

So the question becomes when it happens (not if it happens) that Dow number slices down to 10,000 or less, who is kept holding the bag?

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