Tag Archives: EC

A Greek Fatality

Greece is in a dubious place. On one side it is trying to advertise the appeal to invest in Greece, whilst on the other side it is trying to emphasize that discussions with Turkey and its ascension into the EU must continue. We might go with what we see in the AFP, yet there with “ending Turkey’s accession talks would be a strategic mistake that would maybe benefit only for Erdogan“; Turkey merely ended their own options. The rules were clear, you either adhere to certain standards, or you are not invited. The fact that others must give Turkey the umpteenth chance merely shows how desperate the EU has become. So when we see “Turkey is an important regional power and should remain engaged, added Tsipras, but also called on Turkey to respect international law and stop provocations“, we need to remind Alexis Tsipras that he is in not such a great place, so fathering solutions for optional investments into Greece is a slightly too dangerous a game to play. France is in a similar place. With “French President Emmanuel Macron said Turkey remained a vital partner of the European Union and ties should be maintained even if the country had strayed from the EU path, according to a newspaper interview published on Thursday” we see a President Macron that is becoming merely a facilitator for economic exploitation. Perhaps both need to learn the little lesson that many have voiced. “If You Don’t Stand for Something, You’ll Fall for anything“, it is a shallow and sad inheritance that the EU is leaving behind. A place that was high and mighty in what they call morals, whilst they are all about big business exploitation. The entire Turkey endeavour is partial evidence of that. The ignore through inclusion or else, whilst the current members cannot maintain their budgets, have no control over the expedient spending and the EU in dozens of trillions of debt, add to that an ECB that prints unsupported billions per month and we get a very dangerous situation. Reuters gives us in addition with “France’s Macron, a centrist, was elected in May on a pro-EU platform that included pledges to create a euro zone budget that would be voted through by a euro zone parliament and supervised by a euro zone finance minister” we are merely treated to a fantasy, a fairy tale that will not result in any budget, merely less transparency and more spending. It is also a first step to get the ECB with two years of utter irresponsibility of the hook. With “Stournaras said the euro zone should be strengthened because the ECB cannot be the single institution responsible for ensuring the euro zone’s stability nor can it maintain its ultra-loose monetary policy forever” Reuters is treating us to the first whiffs that the ECB plan has failed. It wants some level of contingency whilst not willing to throw the utterly overpaid ECB members in some prison until their flesh rots and their bones have bleached to something that reminds us of the colour white. It is merely a sham, set to get two more issues on the table. The overspending of Greece on the bond market, which will set the Greeks in another setting, which will bring certain facilitators dozens of millions in some bonus and nothing more than that, no solutions or gain towards any solution at all. This whilst adding Turkey to a field of players that we have been very outspoken against. Unless Turkey adheres to some minimum level of standards, levels that have not been met 16 fold, should be barred from the EU table. A collection of nations trying not to see that the game ended, they lost and they are not willing to face consequences. The good side is that as Brexit continues, every continued achievement within the UK will mean that France and Germany will face levels of what might become civil revolt against the hardships the people there will face and the politicians who placed them there sooner and sooner. You see, there are a growing amount of articles regarding the Germans and their new class of working poor. I think it is a little exaggerated, but the truth is not far from there. The US has a growing group of people working two jobs merely to make ends meet, for the most they are barely above the poverty line. Yes, that is right, two full time jobs merely to stay barely above poverty. The nations that is claiming to be in such good economic growth is handling it’s one percent by making sure that the disabling of the lower 40% is growing at a steady pass. The numbers are not that harsh yet, but for the most, that group has not seen clear quality of life improvements for well over a decade and Germany is slowly going into that very same direction. In Germany the poverty group grew by 0.5% in one year. As the news is hiding behind ‘new tools’ and reports, the Financial Times gives us: “I survive but I cannot live,” says Doris, a 71-year-old retired nurse, in the former German coal mining town of Gelsenkirchen. “I have no money to go to the ballet, or even €10 for the cinema. But what really eats me up is that I can’t afford to give presents to my grandchildren” (at https://www.ft.com/content/db8e0b28-7ec3-11e7-9108-edda0bcbc928), it is more than merely a story, or merely a small anecdote. It is the growing concern of many Germans and the rest of the EU is pushing the events under a large carpet, but under that carpet are more and more issues that are becoming visible. Even as jobless rates are going down, poverty rises. As the EU is not giving rise to the dangers that exploitative models like the ‘Uber show’ (and other players like that), we see a growing trend towards legalised slavery. In this Germany is following the trend of the USA, where the bottom 40% of these ‘earners’ have nothing left, no savings, no assets and no future to speak of. In this, the EU has become the one party to ignore its local members to degrees never seen before. So as we laugh loudly at the non-sincerity of people like Mario Draghi, we need to be aware that extremism towards the right is almost a given in whatever comes forward in the next wave of elections.

It is the gap between rich and poor that is becoming the next danger. You see, it surpassed 20% by a fair bit in Germany and only in France is this difference larger, so as President Macron is not able to turn the tide on all the plans he made, we see that the dangers many tried to prevent with quick BS schemes are now at the turning point of blowing up in the faces of all who played this game. Now, we can agree or disagree whether Marine Le Pen would have been the solution, I personally do not think she could have made any better switch, what is an absolute given is that whatever comes next is not going to be that simple. And as more are screaming some ‘balanced’ none ultra-right change, the very real danger is that these speakers will no longer be heard or regarded as some option. In this the Financial Times will soon show how the poor side of the equation will no longer be contributing to the economy, because of health and mere minimum standards. The Greek fatality will come to show us all what happens when non-equality and non-accountability will destroy entire generations as well as any economic options that might have been, merely because greed and exploitation was given too much leeway. A first step in this was shown last week in Greece with “especially the IMF – to push through liberalization as an ingredient for jump-starting the country“, this however is the danger as we see “A five-point agreement, dating to the summer of 2015, between social partners and employers’ groups is already in place, with the highlight being that the specific law (1264/1982) should be modernized, especially in order to preclude “practices of poor implementation”. Conversely, the agreement does not dispute workers’ right to strike and constitutionally protected union activity“, these poor implementations are optionally the dangers to the fact that workers will lose even more rights than they bargained for. As the ECB is about to ‘attack‘ protectionism, we will see a growing amount of ‘entrepreneurial’ options like Uber, that will leave people with a presentation and no reality in a protected way of life. And I mean a certain minimum level where workers should have some protection from exploitation, which is not about to happen. We might agree that Uber was a nice idea, yet when we see that passengers are not insured, that is merely the tip of the iceberg and I am merely looking at drivers that have the best intentions and merely want to make some cash for their family. They are getting less and less; they have to agree to almost insane conditions. Even as we see and agree that Wired and the BBC are giving us an extreme with “London’s latest cut-price Uber rival is being investigated by TfL“, do you think that this is merely one case and the end of it? So as this Taxify is merely one player, hiding behind “it would “always” have lower fares than Uber“, how long until it becomes a wild west? Even as it is stopped operations in London, it is active in 18 countries. So how are they looked at there? How many are part of the EU and how is this so called one EU in any way ready for Wild West companies to make a quick coin and get out after the damage is done? It is that level of failure that we will see in Germany, France and Italy. So as the large three need to find solutions, the quality of life goes straight into the basement and what is left cannot continue. That was the danger from the beginning and the EU and its political branch as it fails yet again. But nobody cares because Draghi and Yellen will blame protectionism and leave the rest to rot (for lack of a better example) as they enjoy 8 figure incomes. It will not hit them.

We can agree that there will be entrepreneurial events, some will find the golden goose others missed and that is fine, but at present as protectionism is low, as poverty is rising whilst there is a diminishing unemployment group, we need to wonder how the EU has failed its Europeans and whilst it will find a deal to remove mere values towards Turkey and tries to facilitate for more markets we see that there is very little left of this so called Economic European bloc of areas. Brexit came slightly too late but it might still be on time to keep British values up and growing, when that is shown France and Germany will run for the nearest exit. That is not a speculation, it is an absolute given, because soon enough the one percent who has had the media at their back, will not have any backing from a group that needs to stay alive and out of the hands of millions upon millions of angry people, people that will demand local solutions from people who can no longer give those solutions, or even give rise to the existence of those solutions. When that happens, Europe will not be a nice place to be for some time. Should you doubt this (always a valid option) that consider that Italy one of the 4 largest economic nations in the EU now has over 1 in 4 in the South of Italy that is in poverty, nationwide it is at 7.6%, the largest since 2005. So as some are in denial, the numbers do not lie and they are growing at an alarming rate, so even as we see news of a stabilised economy, we see that poverty is basically through the roof. Yet Draghi is not held to any of those standards, he keeps on printing money, 60 billion a month, leaving the poverty groups fending for themselves as they are growing. A clear warning that the Greek situation should have given the EU politicians, they basically all ignored it, because they had a PowerPoint presentation stating that it was not so.

The Greek fatality that is soon on our doorstep will force a new way of thinking. Not merely to the creditors, but to hold those in office accountable and prosecutable. The nice part is that in the largest 4 economic EU nations there would be enough votes to push that change, I wonder how many people will reside in EU politics the moment that shift happens. I wonder how the employment contracts change overnight before the legislative change comes through. The last is speculative from my side, but the evidence we have seen so far supports my worst fears.

Bloomberg partially confirms this. With “Eldorado Gold is the largest foreign investor in Greece and its decision comes as the country, which is working on creating a sustainable path to exit its bailout program, tries to lure foreign investments”, yet with ‘delays in acquiring routine permits’ we see that in the years that Syriza has been in power, the simplest parts of infrastructure arte not in place. We see (at https://www.bloomberg.com/news/articles/2017-09-11/eldorado-s-greek-suspension-threatens-country-s-investment-image) that the government is failing in more than one way. With “I’ve been with Eldorado since February and CEO for five months and I haven’t had any hostility from the government, but just haven’t seen progress on permits”, we need to ask serious questions regarding dropping oversight from Greece, whether the Greeks should be allowed on the bonds market at all. You see, if you allure investment without infrastructure, you have nothing. That is the short and sweet of it all and the players in this debacle are talking a lot and not doing anything. Tsipras did not merely fumbled the ball, he forgot that he is on a playing field, he forgot about the dimensions of this field, he forgot about the referee in this and we now see that he is not aware on the rules of the game to participate. A failing on four fronts in one go, in this they claim to be ready without oversight on creditors? Who are you kidding here?

In this we see even more failings from the ECB and the EU, because in the oversight of the funds given to Greece, we see that there was no proper setting for even the largest investors, giving us the clear path that the EU failed even more because they had to be on par with all this. If not, they have given up their right to existence in all this. They could be regarded as the useless pegs that hold up the virtual tent, a tent that only exists in the minds of the Greek governing party and as such, as the tent is a virtual and exists in only their minds, the pegs would actually be redundant. It sounds harsh, but that is the clear evidence that Bloomberg is giving us. So as we now see ‘Shares in Eldorado have fallen 52 percent in the past year and were trading down 6.5 percent at 09:44 am local time in Toronto’, we can argue that Greece and the Greek government might be regarded as liable for a lot more than they anticipated. As such, what other projects would fail and what will the fallout be from these losses? Jobs, income, visibility as well economic progress, all lost in an instant because the Greeks were not ready to commit. It is a Greek fatality with more casualties than most realise and more will come to the view of others. Even as Reuters gives us that the IMF should commit towards Greece, we now see that such a step is ill advised. Why pour money into anything that will not take the issues serious. Did Greece really think that leaving their largest investor hanging for well over a year would constitute any solution? As such Greece is merely the first, France and Italy have other issues and equal worries, the fact that the EU never clearly looked at certain aspects in Greece gives everyone the worry what else did they not look at, or basically ignore. As such, is Greece merely the first visible fatality? Will we see new references towards Greece? The Greek play could now refer to a version of ‘theatrics‘ as well as a version of ‘doomed economic presentation‘. I will let the English language experts look at that one (just to keep them busy).

 

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About that glass of water

As we see Brexit make the cover pages again, the Guardian gives us ‘UK caves in to EU demand to agree divorce bill before trade talks‘ (at https://www.theguardian.com/politics/2017/jun/19/uk-caves-in-to-eu-demand-to-agree-divorce-bill-before-trade-talks). There are a few issues here and it is not on what is decided on. You see “capitulated to key European demands for a phased approach to Brexit talks, agreeing to park discussions on free trade until they have thrashed out the cost of the multibillion-euro UK divorce settlement” is fair enough. It can be debated in several ways, yet in honesty, as we see the issues that the ECB have pushed upon the UK and the payments the UK have made, it can be clearly stated that the 60,000,000,000 Euro a month that Mario Draghi has been dishing out every month will go to the Euro nations MINUS the United Kingdom. If there is a divorce settlement, the impossibility of the ECB petulant child is a spending tantrum the United Kingdom should be set away from, for the mere reason that it is up to the other parents to contain the credit spending spree engaging youngster.

So as the article makes reference to that half-filled glass, let’s take another look at the options.

The optimist is stating that Brexit will only have used 50% of the opportunities. This is debated as we see that not just governments, but banks and financial institutions are all about keeping the EU inclusive and forever growing so that it can be milked more efficiently.

To support this view, from last year (Nov 2016) we got this part: “Rome has argued that the tight fiscal measures are stifling some economies and should be loosened to allow EU members to invest more money in order to boost growth. This stance has set Italy, Greece and other southern European countries on a collision course with Germany and other northern European member states, who have warned that increasing public spending and subsequently, public debt, is a risky proposition for a bloc still suffering the effects of the 2008 global financial crisis“, so as we have seen, these investments have for the most not made any impact. Italy showed a deficit of 2.4% ($45B), France -3.4% ($84B), Spain -4.5% ($55B), Poland -2.4% ($11B), Belgium -2.6% ($12B), Denmark -.9% ($2B), these are merely the annual 2016 numbers. The list goes on and apart form 1-2 none can keep a correct budget, and they have not been able to do so for well over a decade. In addition there is the 60 billion a month EU spending spree. It seems that the opportunities will be limited to banks.

The pessimist states that Brexit comes with 50% additional fees. Part of that was raised by little old me through the overspending of Mario Draghi. The EU has a debt that is now surpassing 12 trillion Euro, which is including the 1.7 trillion of the UK at present, so the UK, one of the 4 large EU economies is merely 14% of that. The other three (Germany, France and Italy) each have a debt almost 50% larger than the UK. These 4 represent 80% of the EU debt. There is no containing this level of irresponsibility, and getting out was from my point of view the best option. The benefit is that the UK could end its austerity in 5-10 years if proper steps are taken. The EU will be in deep debt for a very long time after that and the smaller nations are realising this and that is why they were complaining so loudly (as I personally see it).

The opportunist drank the Brexit cocktail. This is seen in the growing partnerships, the Netherlands has kicked it off by sharing ‘UK and Netherlands sign defence cooperation agreement‘, it increases defence and security when we consider the Ferry services between the two nations, in addition, the countries will also share personnel and work towards a UK-Netherlands Amphibious Force. This should also bring additional opportunities to the Dutch as the have the most modern navy in the world, a military branch an Island like the UK could benefit from. In addition, the overall high levels of technology in the Netherlands would give additional benefits to cyber security operations. GCHQ has skills that the Dutch AIVD would love to get a better grip on, an option that should become available in this defence cooperation (source: http://www.army-technology.com).

The practical politician does not see that Brexit is half good or half bad, he or she puts them together and both are true. Yes, that is one way of looking at it. The issue is not the political view, it is that the view that they offer is on a sliding scale of change, and it always change towards the need of the politician, which is at times nowhere near the recorded metrics. Sean Whelan, the economics correspondent for RTE gives us “The good news is that almost a third of Irish exports to the UK would face no tariff whatsoever. The bad news is those products (and this report is all about products) are almost entirely produced by the foreign multinational sector – in particular, the pharmaceutical industry“, leave that situation to politicians to evolve into personal ‘opportunity’, is in not interesting that we haven’t seen this element before? All the scaremongering and the ‘one benefit’ will be for the large corporations. Is it not weird that only they seem to have a leg up on the benefit range?

So when we talk about the Brexit glass, we get more and more views and more and more pointed news that gives us a scary story. The reality is that in all this, I stumbled on 2 positive developments, directions I pleaded for as early as late 2015. So as we now see the evolution of nations working together, we might get additional proof on the economy.

That part was initially given by City AM, where we see “UK economy will grow by 1.7 per cent this year, faster than the previously forecast expansion of 1.6 per cent, according to the Institute of Chartered Accountants (ICAEW)“, which sounds good, yet the UK is not out of the fire. When we also read “Michael Izza, ICAEW chief executive, said: “I would like to see the new government put business and the economy at the top of its agenda, doing more to create a climate of optimism and certainty which will help build confidence“. This is more of the banter we have seen too often, that is given by me in such a statement as the UK has no coffers to invest with. This has been the issue all along, as the previous labour government went all out on spending, we are in a stage of culling these debts, so as we see ‘need for investment’, we better realise that Labour wasted £11.2 billion that went straight down the drain. It will take some time to overcome this in addition to the deficit and the debts. It’s not rocket science and relying on the forecasts as they have been wrong by too much all over Europe, we need to consider which sources to trust. A mere reality of what came before and also a reality as Brexit will have an impact; there was never any denying that. It is just that from my point of view, the UK recovery would be faster outside of, than within the EU. That part has already been shown to some degree, to some mind you, not to the full extent. We can only speculate on that part until Brexit is final.

So no matter how we relate this to a glass, how it is seen. The glass merely is. It is the consequence of long term European injustice. Their convoluted presentation, where big business gets a free pass again and again, not tax accountability of any kind. By allowing the EC gravy trains to be running smooth they also sunk their own options of long term survival.

Yet, the gravy train is ignored. So when I refer to the Times (at https://www.thetimes.co.uk/edition/news/kinnocks-on-the-brussels-gravy-train-xcxbdkx6r) with reference to June 2016, here we see: “The former Labour leader was responsible for transport and then became a vice-president with responsibility for administrative reform. By the time he left in 2004 Lord Kinnock was earning £163,453 a year alongside a housing allowance and an entertainment budget. He received a payment of nearly £273,000 on leaving office. He has an EU pension thought to be worth more than £60,000 per year alongside the pension he receives for…” and we have not looked at the other 750 members! Still think that I lost my marbles, or are you seeing a spending spree above the 60 billion Euro a month that is too ludicrous to consider?

By trivializing this I am not making it any better, talking about glasses and water, but it aids you to consider that within the European community, the consideration of water can be whatever they want it to be, which means that transparency is pretty much gone. Is that not the first requirement of the European Community? Is Brexit still such a bad idea? This is supported by the Financial Times as they published in May 2017 (at https://www.ft.com/content/7d1eea08-3be8-11e7-ac89-b01cc67cfeec), the article ‘Call for transparency on ECB corporate bond buying‘, now it is important to consider that nothing wrong was done (as far as we can tell), yet when we see ‘MEPs want to dispel any concerns of benefits to small group of favoured companies‘, the question becomes, why was this not done from day 1? The quote “So far, about €75bn of corporate bonds has been bought as part of QE, a small part of the €1.8tn that the ECB has spent overall. Most is spent on bonds issued by Eurozone governments” gives view that it is not a massive amount compared to the complete spending spree, yet €75B is massive, 0.001% of that could secure my financial future, settle my bills have a decent house to live in, so it adds up to a lot, fast! Still the article shows a concern and that is why I went there. The quote “While the actual amounts are not disclosed, the ECB has explained that it buys proportionally to outstanding issues, and market capitalisation provides a weighting.“, yet weighting depends on factors, which factors and how are they applied? Invariable, weighting is done to either ‘regress to the centre’, as a means to present it as an accepted part (by whom is still the question), or to obscure the view of the amount of outliers in the balance of the matter, neither of these is a good thing. In addition, the request “disclose greater detail on this programme’s operating guidelines, in order to explain to citizens how the corporate bonds are being selected“, is a worry as there could be a unbalanced support to corporations with bonds and in addition, the mention “Another request from the MEPs is that other central banks follow the lead of Germany’s Bundesbank in publishing the names of companies with bonds, rather than just the ISIN number, a code used to identify them on the financial markets” gives out that hiding behind an ISIN number gives weight to other issues too. Part of this is in the attached PDF ‘a proceeding under Article 102 of the Treaty on the Functioning of the European Union and Article 54 of the EEA Agreementattached here, where several issues are shown, the quote ‘by requiring European financial firms and data vendors to pay licensing fees for their use‘. So not only is the EC hiding behind these numbers, but there is an additional fee? Well, apparently that was negated to some extent and that agreement ended in 2016, so are there fee’s now, all issues of non-transparency. All these issues chipping away the assumed ‘premise’ towards the ‘validity of existence’ of the EC and even the ECB.

So when we talk about the glass it is not just the size, not about the water that is in it, but the fact that the glass is too opaque in many instances, the fact that some members have known the lack of transparency and in this we see a system that seems to have been intentionally hiding behind non-transparency. If there is one part that proves it, than it is the existence of Grexit and Brexit and more over the time it took for these politicians to give clarity on how proceedings were supposed to go and how the media left the people in the dark on the actual issues. All that, with the confusion we see as the EC seems to be in the dark on how to deal with an exiting nation gives more worries than confidence, because the actions and threats shown is not that of some economic alliance, it is the foundation of some tyranny where the freedom of choice becomes the burden of blackmail, threats and intentional miscommunication.

I’ll let you decide on how much you enjoy being blackmailed and threatened and where the freedom of choice remains in all of that.

Commission decision COMP39.592

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Opposed to Fry

The Guardian placed an interesting piece regarding Stephen Fry. This is a good thing, it is always nice to see the point of view of a truly intelligent person, even if I do not entirely agree. This is what happens in an intelligent world, one gives a good point of view and the second person opposes it, or agrees with it. In a true interactive dialogue, the problems of the world could be solved in such manner, which is why it tends to be really sad when politicians avoid that approach slightly too often. The article (at https://www.theguardian.com/technology/2017/may/28/stephen-fry-facebook-and-other-platforms-should-be-classed-as-publishers) gives a few nice gems to start with: “Stephen Fry has called for Facebook and other “aggregating news agencies” to be reclassified as publishers in order to stop fake news and online abuse spreading by making social media subject to the same legal responsibilities as traditional news websites“, this is a good start, but here is also the foundation of my disagreement.

You see ‘Facebook and other “aggregating news agencies”‘ gives us a point, in my view Facebook is not an aggregating news agency. It is a social media outlet and as such, the Guardian, the Daily Mail, Reuters, CNN and a whole host of other providers push their articles to Facebook, often just a small eye catcher with a link to their web page. People can use ‘like‘ and ‘follow‘ and as such the news appears on their time line. This is mere facilitation. Do not get me wrong, Stephen Fry makes good points. In my opposition I would state that it makes more sense to go after the tabloids. Until they clean up their act with the innuendo and their not ‘fake’ but ‘intentional misrepresented‘ news, news that is miscommunicated in such ways to create emotional waves. They need to lose their 0% VAT option, that should be reserved for ACTUAL NEWSPAPERS. You see, these tabloids also use the social media as a projecting outlet. In all this Facebook merely facilitates. The second quote is “Fry accused social media platforms of refusing to “take responsibility for those dangerous, defamatory, inflammatory and fake items whose effects will have legal consequences for traditional printed or broadcast media, but which they can escape”“, I find it a lot harder to disagree with, although, when was the last time tabloids were actually truly fined to a realistic amount, an amount where the fine is set to the revenue of a week of published papers? You see when you have 2 billion users, you will get waves of fake news, or false information. There are no numbers, but consider that with 2 billion users, you are looking at 250 million to 1 billion added events per day, how can this be policed? Now, algorithms to police the use of certain words and that could help to some degree, yet the abusers of the social media system are getting clued in too. So they are getting good at avoiding triggering the software by avoiding words that flags them. In addition, when it is done via fake accounts, how can anything be stopped?

Fry makes a good case, yet I think he is not seeing the scope and amount of data involved. In addition, we see “At the moment, they are evading responsibility for their content as they can claim to be platforms, rather than publishers. Given that they are now a major source of news for 80% of the population, that is clearly an absurd anomaly“, he is completely correct, yet the users of Facebook have the option to not watch it or to not accept it on their timeline. Doesn’t that make it a choice of freedom for the users of Facebook? I have in the past needed to block content from a ‘so called‘ friend, merely because of the amount of BS he was forwarding. It was fixed with a mere click of the button. This is not an opposition towards the point Stephen Fry is making, but an answer on how some people could deal with it. In this equation we have the number of people on Facebook, there is a variable that takes into account the amount of BS we get from tabloids, and you better believe that they are active, via ‘stories’ and via advertisement. The advanced options of granularity that Facebook advertisements offers is the reason why those tabloids want to be there and the tabloid group outside of the UK is massively larger than the disgusting size of the UK tabloids is and they are all offering their links on a global scale.

Can Facebook be held to account? Well, to a certain level they can, you see, the actual propagator of events needs a Facebook account. When information is limited to an audience, the impact is lessened. So as Facebook users can no longer send information to friends of friends, only to friends, we have lost an iteration, this could be the difference between 500 people getting the news (fake or real) or the impact that this news goes to 250,000 people, when the addition is that newsmakers can no longer forward it over timelines, but only to the one subscribed timeline, we will soon see a shift on the wave of messages. In addition, not only is the damage contained (to some degree), but as forwarding any post becomes an instance, there would be a much smaller list to police and the users forwarding the post would no longer be the facilitator, they would become the publisher. Facebook is kinda ‘off the hook’, but the user is not, they could to some degree be held to account for certain actions. It makes the events a lot more manageable. In addition, it could limit impact of events.

So here we see the optional solution to some degree. It must be clear that it is to some extent, because it merely drops the impact, it does not take it away. Stephen follows it all up by also making reference to the British Airways IT fiasco. We now see “Fry cautioned that the world’s reliance on digital systems would also inevitably prompt a cataclysmic cyber-attack and bring on a “digital winter for humankind”“, there is certainly a danger and an issue here. The question becomes which issue is in play? As we see Reuters giving us: ““Many of our IT systems are back up today,” BA Chairman and Chief Executive Alex Cruz said in a video posted on Twitter“, we need to realise that even as Terminal 5 was designed to deal with 35 million passengers, in 2015, the numbers give us ‘Terminal 5 handled 33.1 million passengers on 215,716 flights‘, this gets us the average of 91,000 passengers a day, for 590 flights. So there would be an issue for 3-4 days I reckon. That is just the one day impact. The issue that plays and the caution of Stephen Fry is that as we are unaware of why and how it happened, there is no guarantee that it will not happen again. One of the Guardian articles gives us: “The glitch is believed to have been caused by a power supply issue and there is no evidence of a cyber-attack, the airline said. It has denied a claim by the GMB union that BA’s decision to outsource hundreds of IT jobs to India last year was behind the problems“, which has two parts one is the power supply issue, which is a bit of an issue, the second one is outsourcing. The first one is weird, that is, until we know where that power issue was. If there is a server farm, the server farm would be an issue. At this point, the backup systems should have been working, which should if properly set up be in a secondary location. power issues there too? There are several points where the issue could impact, yet with proper setup and tested solutions, the impact should not have been to the degree it was. That is, unless this was done by the same team who ‘tried’ to give the NHS a new system about 5 years ago, if so then all bets are off. The outsourcing sounds nice when you are a union, but that would merely impact the customer service as I personally see it, so until I see specific evidence of that, I will call it a bogus claim by GMB.

The Stephen Fry issue was neither, he merely stated ‘digital winter for humankind‘, which is an actual danger we are facing more and more. You can judge that for yourself and test it. You merely have to switch off mobile data and Wi-Fi from your mobile for 24 hours. 99.992% will not be able to do that, we are that relying on getting fed digital information. We will offer a host of excuses; like ‘I need to be reachable‘ or ‘people need me non-stop‘. I see it as all bogus mentions of the fact that we are digitally too dependent. If you give these people the additional limitation of ONLY using the e-mail and office programs, the chaos is nearly complete. We are all 100% digitally dependent. That means that any damage to such an infrastructure will bring us distress. We then see “An extinction-level event … will obliterate our title deeds, eliminate our personal records, annul our bank accounts and life savings” which is only part of the quote, but this part has already been arranged for the people of the world, it is called Wall Street (remember 2004 and 2008).

The final part to address is the part we see combined in the article. “Fry also addressed the rise of big data, which has seen private companies competing for and using the personal data of millions for corporate gain, the gig economy of Uber and Deliveroo; the inability of governments worldwide to keep up with technological progress; and live-streaming services like Facebook Live allowing people to broadcast acts of violence and self-harm“, the three elements are:

  1. Rise of big data
  2. Keeping up with technological progress
  3. Live streaming towards violence and self-harm

There is no issue with the rise of big data, well, there is but the people are in denial. They are all about government and the optional alleged abuse of that data, whilst they give the green light to places like Facebook and other instances to do just that, and now they get to sell aggregated data. Yet, when we use a certain data property, where every person is 1, like a social security number or a insurance policy number, when every aggregated fact is founded on a population of 1, how aggregated are you then?

We know that governments are not technologically up to date. You see, the cost to get that done is just too high. In addition, governments and other large non-commercial organisations tend to not push or pursue policies too high, which is why the NHS had its Ransomware issues. We see Labour and socialistic parties on how it all needs to be about people programs, whilst they all know perfectly well that without proper infrastructure there would be nothing left to work with, they just don’t care! They need their image of creating jobs, whilst spending all the cash they have and pushing the government into the deepest debt to keep whatever lame promise they make and the next person gets to deal with the mess they leave behind. The lack of long term foresight is also the Achilles of IT, any IT structure needs a foresight of what is to be done next, by living in a fantasy ‘at the present’ setting, is why some politicians go into denial and in that case IT systems will falter over time and no one is set into the field of ‘let’s get this working properly’, the NHS is the clearest example, but not the only one, or the last one to buckle.

The live stream is the larger issue that has no real solution, that is until the numbers are dealt with. As larger facilitators get a handle of what is pushed online, resources open up to resolve certain issues. There will forever be a risk that certain live streams get through, yet the chances might be limited over time. In that, until the laws change, there remains a problem. Part of it is the law itself. The fact that a rape was streamed live, in it watchers saw Raymond Gates, who was accused in the attack and charged with kidnapping, rape, sexual battery and pandering sexual matter involving a minor. That person ended up with 9 years in jail, whilst he ‘enjoyed’ media limelight attention for many months. Marina Lonina, the person who filmed it all got ‘caught up in the likes’. The New York Times stated: “The defendants each face more than 40 years in prison if convicted“, yet in the end, yet the girl filming it got 9 months, the man doing the act got 9 years (source: CBC). So as we see, it seems that the act of live streaming is rewarded with an optional implied sentence reduction of 39 years and 3 months. So if the governments want to make change, I would suggest that they clean up their justice departments and get some proper convictions in place that will deter such live stream actions. In addition, if Marina Lonina would have been convicted with at least the 8 years in addition, so that she and the actual penetrator served the same amount, there might be a chance that live streaming of self harm will fall. There is no evidence that it will, but you get to solve the matter in small steps. Take away the ‘benefits’ of being merely the camera man or girl, the amount of events might drop too.

So here is my view and opposition of the parts Stephen Fry offered. He made good points and raising awareness of issues is always a good thing, especially if they are made by a person as renowned as Stephen Fry, but in all this dimensionality is still a factor. The response against issues (which I blogged earlier) on ‘tough new laws on extremist and explicit video‘, yet in all this, many transgressors will not get convicted and making it the problem of the facilitator, whilst the governments know that the law falls short is just blatantly stupid on the side of the governments. In the end, these people are not stupid, this track will continue for several years, whilst those politicians with: “the rules are not yet public and now enter what is known as “trialogue” – discussions between negotiators from the EC, the European parliament and the Council of the European Union“, gave rise to my ménage-a-trialogue label as this becomes a new EC gravy train which ends up coasting a boatload in lunches, meetings, hotels and flights whilst not resulting in any actual solution. Do you still think Brexit was a bad idea?

OK, my bad, this was not about Brexit, but the issue of laws and free speech have been on the agenda for the longest of times as ‘Strasbourg on March 24th, judges, journalists, lawyers and activists discussed the challenges facing the protection of free expression in Europe‘, there we saw that Helen Darbishire stressed on that event that “it is necessary that the judiciary in individual countries become more aware of European jurisprudence and standards“. If it is true that many countries are establishing regulations, transparency of public information is still far from being a reality. Yet when we consider that freedom of expression can be positive or negative and any hindrance of it goes via Strasbourg, the limitations faced cannot be pushed onto large corporations that facilitate. As the government leaves the field open to tabloids and even make them VAT exempt in the progress, a facilitator that comes with editors, writers and photographers, how can you push the blame onto a facilitation service that has been largely automated? And the worst of all, the governments pushing to place the blame in the other isle know this very well. As long as the debate goes on, they are ‘working on it‘ making the issue even worse.

So even as I oppose Stephen Fry to some extent, it was good and really interesting to read parts of his view (I was not at the event, so the Guardian might not have given me all he said), and as I read his view, I contemplated the views I had and tested them, that is what the views of an intelligent person does, they allow you to test these views against the views you have, which is awesome any given day of the week.

 

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Awaiting the next…

There is not a lot to do today, the French polling booths opened up 28 minutes ago, there is no certainty who will make it to the palace in Paris and I will not speculate at this time. In that regard, the shouting of ‘hacked’ by Emmanuel Macron seems shabby and shallow. In that same light, we see (what I regard to be) the the hilarious idiocy of Jeremy Corbyn with ‘We’ll fund spending by raising tax on £80,000 earners, says Labour’, which is a joke when you consider that it does not even get close to 20% of the spending spree he has in mind. The UK is in a state of hardship for now and that has always been a known fact. It is a hurdle that the right politicians can overcome and Jeremy Corbyn is showing again and again that he is not cut out for that position. The quotes “under the plans, 95% of taxpayers would be guaranteed no increases in their income tax during the next parliament” as well as “those earning above £80,000 should expect to pay more to enable improvements to the health service, education and other public services” show the level of lacking reality. Now, I have nothing against raising taxation just a little in high earner fields, yet that was to offset increasing the 0% tax bar so that those in low incomes would get just a little more. The improvements needed to health care alone will require billions, more than the tax increase allows for, which means that the UK Labour party is deceiving you. Would you vote for someone who actively and openly deceives you? You as UK voters, you should know this by now. In all this, these false promises from Labour UK is merely a clear sign that voting for them is voting for the downfall of the UK. UKIP is equally down, having no constituencies left and the lack of the charisma of Nigel Farage is a problem for them. Paul Nuttall is not getting it done, which is no bad reflection in him. He started as the underdog and with merely a Brexit, it is not enough. Farage was (even though everyone disagrees) a visionary, not the most diplomatically eloquent one, but a visionary none the less. Paul requires more than he has at present, more following, more issues to work with and these two are much harder to come by at present. The Lib Dems are not in a growing side either, but they already had a following and I will admit that Tim Farron did a lot better in this election than I gave him credit for. If he can connect to Theresa May and plead for essential parts of the Lib Dems message to become accepted by the Tories, he will actually have a game to play and if administered better than Nick Clegg did, he will have an advantage, one that surpasses the Labour party at present, which is saying a lot.

In all this, we have weeks to see the press give voice and give a swing to what these politicians are trying to say without sounding like Oliver Twist with ‘Can I have a little more please?

Whatever happens, it will not happen until Tuesday as Monday will all be about France and it will be about the next phase of France. In that regard I do believe that the outcome of the elections is merely a stage towards what will be opened at that time. No matter the win, a European referendum seems to be no longer avoidable. Macron is realising it and Marine Le Pen is merely waiting for Macron to screw up that one mistake is all that will be required.

That is the setting which we will see before the general elections and hen that happens it will impact the political actions in the UK. It all takes a turn when we look at the BBC with their reality Check, those claiming (read: Nick Clegg) that households would be £500 worse off is still not proven to be correct. If anything, they are 0.2% better off, yet there is a little over 6 months to go, so there is room for the end result to shift, yet by June this might be proven to be no longer a reality. It is those bog winded predictions that should be at the core of how we hold politicians accountable and in that regard Nick and Jeremy are not doing too well. Even as they hit out against Nigel Farage when he stated ‘I would much rather’, which is a preference and not a certainty, they themselves are all about ‘is likely to be’ which is actually also a prediction. It is the intonation of ‘it could be worse’ that counts. I have seen too much from certain people showing this path. It is the level of fear mongering for votes that really gets my goat.

Clegg was doing a similar thing less than 24 hours ago on how raising taxation would gain Sheffield £100 million (source: the Express). As I see it “by adding a penny onto every pound of income tax people pay. The tax, the Lib Dems say, would raise £103.7 million for Sheffield each year – £84 million for the NHS and £19.7 million for social care” the quote is merely wishful thinking, by raising taxation by even 1%, the lowest two groups could find themselves in near physical hardship, which now implies that the spike that the increase brings will result in NHS costs more than twice the amount they are gaining. By the way, that one percent addition, implies that Sheffield gets a little too much. When we get the numbers from HM Revenue & Customs, we see that in 2015 South Yorkshire the total taxation was a little over £2 billion, 1% of that is merely £20 million, so where is little Nicky getting the rest from? I am 100% certain that the quality of life in South Yorkshire did not go up by 500% in one year. Yorkshire pudding just does not give that level of taxable revenue. Which implies that Tim Farron has a problem by letting Nick Clegg babble all over the place. Perhaps Clegg was the Obi-Wan Kenobi of Jeremy Corbyn? In all this we see a need for clarity and getting the correct information to the voters, because any Clegg-Corbyn union will ruin the United Kingdom as I personally see it.

So what is next? What are we waiting for?

That is an actual issue, at times we can only wait until the results arrive and the UK will be awaiting what happens next. On this day, this Sunday, the UK will be reacting to what happens on the mainland. Even Greece is getting visibility by proclaiming to be the ally of Macron, so how are they valued at anything? Late last month we see how Greece is one target to make the debtor deal, whilst last week we see that the EU is trimming down the forecast for 2017 from 2.7% to merely 2%, in all this were the numbers adjusted? So after the deal, we get the bad news that the numbers were off by almost 26%, how is anything in Greece valued at all? (source: RTE).

So, those people who were off by well over 25% are all about engaging through the facilitation of a former French investment banker as President of France? In all this the UK will go forward in Brexit, because not doing so will have dire consequences. That risk is now coming from the US a they are trying to get the Financial Choice Act into place. So at the Guardian reported “If you want to buy a house, it will let salespeople push you into high-interest, high-fee loans because it increases their referral fees. On top of that, it makes it easier for realtors and mortgage lenders to sell you into closing services that they actually control – essentially giving themselves a kickback”, is just one of a few issues that give rise to the angers of more than the low income earners to become either a wage slave or homeless. You only need to have been there to know that you will do nearly anything to remain a wage slave. On the 15th of February of this year I wrote (at https://lawlordtobe.com/2017/02/15/pimping-the-united-states/): “If there is an upside, then it will be that the next financial event will have one enormous difference, the moment the US people see that their quality of life returns to a 2009 state, there will be 170-205 million people unanimously agreeing that the President of the United States is to be assassinated, moreover, when that angry mob runs to Washington, the army will not intervene as they will have been hit just as hard as well as their family members. So at that point the Secret Service will need to protect an idiot, whilst they have less than 1% of the ammunition required to stop that angry mob. Good luck to them I say!”, the Financial Choice Act might be the actual point that made my speculation a few months ago an actual reality. At that point we need no longer worry about either the IMF, Mario Draghi or the Euro. I reckon that once one of the players goes a little overboard for mere greed, the people will gut (quite literally) anyone working on Wall Street, at that point the people at the IMF will run for their lives, having no control over what happens next on the global market. Mario Draghi would essentially take the first flight into anonymity and the Euro would take a dive so steep that 10 EC members will take flight to their old currency overnight giving the UK and Sweden a large reason to smile for a few hours (they would still take a hit soon thereafter), pensions in Europe will become a thing of the past. Yes, this is speculation, yet when the financial services making a profit will over $150 billion a year needs more options for profit, I think we can all agree that the dangers of any future lost to the population at large will have dire consequences for anyone facilitating in that endeavour.

The weird part is that Frexit will actually increase the dangers to the Financial Choice Act to become a reality, because that is the way greed tends to go. Those wanting it are already massively rich and they will not care about the 98.4% of the population that they hurt to such an extent. So as we contemplate Brexit, Frexit, Swedone, Withdrawsaw, Czech-out, Donegary and any other fashion word for countries leaving the Euro (oh, I forgot about Beljump and Nexit), the US in their lack of foresight is about to give rise to financial fears to the global market at large. I will dig deeper into the Financial Choice Act in the near future.

 

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Conservatively valued

When I was relaxing last night, I knew that there was an issue with the UK Labour party. There has been one for the longest of times, what was not clear to me is that it went a lot further than I expected. Not only was I unaware that in all the waves of Media bias, the voters themselves had figured out a few things. Not that the voters are in need of education, because proper information tends to give voters a better view of what way not to go. No, the fact that we se (at https://www.theguardian.com/politics/2017/may/05/local-elections-tories-profit-from-ukip-collapse-amid-labour-losses), that the local pats of the Labour party have been decimated by losing over 300 seats, they are not out of the war yet. In that the General elections of June will still be a fight to consider. What seems to be the case is that on a local level, the people seem to have had enough of the Labour party. UKIP took a dive too and has now no election seats left. I am not sure how I feel about that, because it is a local thing and the people will vote for those who will achieve something for them, in that regard I cannot state that for one, how active UKIP has been, and in the second part that for the most, the charisma of Nigel Farage was the driving force of UKIP, without him active in the party, it would all be about the people of the local electorate and how they perceive their local elected youkiperino. The LibDems did OK, which was a little bit of a shock, but perhaps like in the previous elections as there was an interchangeability in electorate councils between UKIP and the LibDems, there is a chance a chunk of those people switched back. I would need the actual datasets to take a better look at that part. The quote in the article by Anushka Astana and Heather Steward is an interesting one, we see: “May’s claim that the EU was meddling in British affairs, which propelled her on to the front page of every national newspaper on Thursday morning as voters headed to the polls, was believed to have contributed to her party’s success against Ukip”, there is every bit an optional truth in that, the entire EC issues and the Europe against Britain has given Theresa May a much stronger view and an increased improved exposure and that is what the local voter are influenced by. I agree with that part, yet that would still not have been possible without Labour pooching their political game. In that Jeremy Corbyn is that larger loser, as I pointed out the day before yesterday in my previous blog. So as the UK moves forward towards next month elections, we will see levels of accusation of foul play by the Labour Party and possible UKIP too, the truth is that the people are realising that it is not one against the other, it is the UK against a non-trustworthy engine in Brussels and in addition the European Central Bank and Germany. Two sides that are trying not to get thrown of the European Gravy train. In that side, the additional usage of a German opening his mouth in, what I would classify as ‘stupidity’ with ‘Brexit: English is losing its importance in Europe, says Juncker’ (at https://www.theguardian.com/politics/2017/may/05/brexit-english-is-losing-its-importance-in-europe-says-juncker), where we read: “Slowly but surely English is losing importance in Europe,” Juncker said, to applause from his audience. “The French will have elections on Sunday and I would like them to understand what I am saying.” After these opening remarks in English, he switched to French for the rest of the speech”. It was bad form, even worse decorum and in that he is now desperately not be seen as a failure, which still has a 50/50 chance of getting getting painted as the ‘village idiot’ in the cold light of day this coming Monday.  The fact that a French election was super unpredictable in round one was pretty much a first in French modern history, the fact that t is not just party polarisation, it is the fact that the people have suffered a massive quality of life, whist in addition that level of loss has been frozen for over a decade is also an issue never addressed by those parties and the opposition is now screaming ‘everyone but Le Pen’ is doing so whilst he was part of a business that took the quality of life away from the French in the first place. It seems that the moment the voters remember their 10 years of hardship and see that one of the choices is a former investment banker, his goose is cooked and ready to get gobbled.

What we do know is that the English language has only increased in importance and it will do so for a long time to come, it does not matter whether the UK is in or out of the EC, the UK remains part of Europe, a trivial matter that Juncker overlooks, in equal measure, when people do business out of their own country in Sweden, Denmark, the Netherlands, Spain and Italy, it is the English language that they hold one too, both sides feel comfortable with. The European population has not felt comfortable with the German language since WW1 and the French in all honesty elide on the elitist ambassadorial need for French, which tens to be not used in those circles either. So Juncker strikes out twice and the hostility created here is also setting the UK population in what might be seen as ‘fighting mode’, which supports conservative values lot more than many bargain for. When a person is attacked on values, that person looks towards family, the homestead, the workplace and staying strong, all conservative values (here I mean original values, not just Conservative party values) and the Tories profited by the situation.

Even as Theresa May keeps a cool head not relying on this victory for the general election, there is a truth in he fighting stand to keep Britain together. In that the Labour party with all its infighting is hurting itself with every round that some Labour person comes out with some strong statement trying to look clever. They merely seem to alienate their own member base. The fact that the Welsh side of the Labour party feels safer doing it on their own is a second sign that shows how much they bungled their own chances (not the Welsh mind you). I have seen and heard cries for Miliband, yet I am not certain how he could fit in. We could argue that anything is better than Jeremy Corbyn, yet the strength of Labour was always coming from a local side and they los that, implying that without that momentum there is no Labour to consider. I am not certain that this is true, in that France can be a driving force for the Labour message in the UK, especially is Le Pen wins. I have stated before and a few times that ‘nationalism’ is not an ugly word, we al believe in our nationalism to drive national pride in sports and products. Do you think that ‘buy Australian’ is merely an empty gesture? As the French rely on the national pride to grow its economy, Labour could do that in the next local elections and regain their own strength (be it with an essential lack of infighting). Yet, this is for the next local elections and in that, unless a miracle happens, the General elections are a wash for the Labour Party. If you doubt me, then consider that this path had proven to be a winning strategy for UKIP and it is still giving momentum to the LibDems. Too bad that the Corbyn groups did not figure this out in time. Will there be a power shift in Labour? It essentially need to be because they have nothing left to rely on, Corbyn threw that away. I cannot state that Miliband is the solution, it is weird, but I do believe that if Ed takes the lessons of his father Ralph to heart, he could swing it all over the next elections. Those who rely on the hatched job the press did two years ago need to realise that his father a Polish Jew immigrated to the UK, fought the Germans (as all British did) and as a University professor created what is now known as ‘the New Left’, Marxist in origin or not, you need to be a person of particularly strong vision to pull that off and he Labour party grew from near nothing to true strength, historical sides that were ignored, even by junior himself. I am not going into he said, she said, and the mud slinging. We know that historically both sides have been fiercely Nationalistic as only the Brits can be. That side has been lost by Labour as it tried to be more European at times, which is now a decided disadvantage, because how did the UK fare under the ECB? Not that great, or at least not to the degree they could have been and the people are seeing the realisation of that more and more, to the detriment of the Labour numbers. Even as some people are urging that Mario Draghi is easing down from his spending spree, Draghi is defiant in his need to wave the trillion-euro credit card around, leaving whatever to come next to pay for the bills. It only resolves the need for Brexit and any anti-Brexit noises we hear will impact the voting numbers, UKIP started it, the people voted on it and now France is moving on it too, yet that outcome is not a given. In all this we see the IMF calling in negativity towards the UK, whilst they have been wrong already three times. In all this we also see the influence of Greece on all this, because it will. Ekathimerini reports: “Greek bonds are investors’ last chance to take a free ride courtesy of the European Central Bank. Athens could soon be eligible for the bank’s program of bond purchases, pushing up prices just as those of other Eurozone bonds start going the other way”, they did not learn the last time, now they have to get to be this stupid again? You see, bonds are lovely for those mediating in this, the expected windfall for those mediating was roughly 50 million Euro last time, and this time? Consider that the Greeks ended up with literally nothing t show for, so why repeat such a stupid mistake, this just drives the need for Brexit and Frexit faster and stronger. That is how Greece is impacting on Europe. We can argue on how desperately the Greeks need it, yet when we know the consequence that it merely keeps the lights on for merely a month and it will take the people years to pay it off, how good an idea do you think this is? And that is when we realise that the interest levels will only rise again giving additional hardship to the Greeks, in all this that so called ‘independent’ ECB seems to be setting the stage for themselves alone. How is that European, acceptable or even problem solving this ECB is? So far there has been no evidence that they are anything but a facilitation to a group that was not elected and seems to have an agenda that is locked down and detrimental to the heath of the entire Eurozone.

Now I agree that my previous statement s a little too strong and perhaps off the boil, yet the election over the next 48 hours are giving us the reality that the people are feeling the hurt, whilst unelected elements are paving the way for big business to get free rides and easy access to the options of profit which will not help the voting population any. Website Fortune.com is giving us “The gross domestic product of the 19-country euro zone bloc grew by 0.5 percent on the quarter in the first quarter, which translates to annualized growth of 1.8 percent in all of 2017, the European statistics agency Eurostat said”, my issue is that the year is not over and in the bulk of all instances in the past, expectations ‘suddenly’ get winded down in Q1 2018, In addition we know that after one quarter 0.5% does not make for 1.8%, and that reality has been shown to many of us too often, the issue is also that this is happening whilst Mario Draghi is spending €60 billion a month, so basically it is fuelling some commerce which is not any level of economic growth, in that realisation, the UK is growing decently and France could go the same way when it Frexit’s the hell out of the ECB jurisdiction. With every spiced report we read, with every ‘speculated translation’ we are given less of less faith in a system that is fuelling itself by plunging the European nations in deeper debt. Tell me, when was that EVER a solution to economic hardship? In my view nationalism seems to be one of the few working solutions left. We just need the right champion and so far (even as I was not a fan of her) Theresa May has been doing the right job, steering the right path, so as a conservative, I feel pretty good. I just hope that Labour gets its act together, because better politicians are forged through opposition, and in the coming four years we need Theresa May to be as strong as possible, because Brexit will not be a cake walk, as the European players are losing their power base and as their fear of a mediocre income grows they will be changing their games and tactics into something insidious, hoping to strong along weaker players and seeing what they can bank for themselves. The lack of transparency will increasingly allow for it. The fact that there is such a lack of transparency has been voiced by others for some time, yet the lack of actions ran updated code of conduct, whilst the ECB powers have grown (source: Handelsblatt Global), when we see such a failing after a decade, whilst the ECB is all about stopping people leaving the European Fraternity is a weird situation, the act that you cannot be thrown out (see Greece) and when a party seeks a better place (see UK) we are confronted with actual issues on the ECB and its spending spree, even hen its largest player (see Germany) is asking  Mario Draghi to ease off. All this is leaving a bitter taste in my mouth and that is even before we realise that the UK has big national fish to fry and solve (see NHS). In all this should we even wonder how France will react? How the French will act when Emmanuel Macron wins and makes a quick deal with his former investment banker friends? I reckon that there is the smallest of chances that in the hereafter Louis XVIII will ask Emmanuel Macron: ‘You too?’. In that, it is so Monty Python to quote that Emmanuel Macron was 171cm in life, whilst at the day of his death he was only 149 cm tall. I joke and offcourse it is unlikely to happen, yet the rage of the French people is such that 50% is siding with Marine Le Pen, a situation that would be unthinkable before Francois Hollande became president. So you tell me, if Le Pen does not win (not unrealistic) and suddenly the people see Frexit fall away (also not unrealistic), how unrealistic is it when some elements of the ECB get exposed and the French rage that follows, especially when the UK economy remains growing stronger and stronger, that not only will a Frexit referendum be demanded by well over 70% of the French, or what will happen at that point when Emmanuel Macron starts dragging his feet?

We will not know for two days, but after that, no matter who wins, France will be in for several large changes. You might have seen how Emmanuel Macron voiced his view on Frexit, yet like Jeremy Corbyn, talk is cheap and the agenda of an elected official tends to change after getting elected, that much has been proven for decades. The question is how far is Macron willing to take it and how will the French view the changes offered. This all impacts on the UK general elections as it will set the tone for Europe. It will have an impact that will last the rest of this current generation to clean up the mess that EC non-elected officials created.

For those who vote, do so, be true to yourself and your family, whilst being in support of your nation, that is as much as anyone can do, do so truthfully and you should be fine.

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Saturation in Denial

Last week the Guardian published one of the weirder stories. It’s from Lisa O’Carroll and Gwyn Topham with the title ‘Ryanair ‘will have to suspend UK flights’ without early Brexit aviation deal‘ (at https://www.theguardian.com/business/2017/apr/06/ryanair-uk-flights-brexit-deal-wto), why do we care?

The subtitle is a little more interesting, but for very different reasons, so when you see ‘Falling back on WTO rules without a bilateral arrangement would be ‘disastrous’, says airline’s finance chief‘, you need to look beyond the claim given.

Why is this funny?

When you see the quote “Ryanair has warned it will have to halt flights from the UK for “weeks or months” if Theresa May does not seal an early bilateral Brexit deal on international aviation“, we need not worry, we can howl with laughter at the implied push for stress, both Lisa O’Carroll and Gwyn Topham should know better! You see, when you go to www.skyscanner.com.au, and I seek a flight from London to Amsterdam, I get flight offered from $198, for a return. Now, the issue is not the price, the issue is that between the 9th and 10th of April, I get offered 1295 results, stretching 130 pages of flights over a period of 24 hours. Now, we can agree that this does not apply for all locations. For example flights to Munich will only give 934 results and Stockholm gives me 981 options. So basically, there are more options to get from London to either Amsterdam, Munich or Stockholm, than there are trains from London to Birmingham! Now, it is a fair call that this place is filled with Ashton Villa fans, so why would you want to go there, but the direct issue is given. When we see the quote “Ryanair’s UK flights were only 2% of its business, said Sorahan“, so why on earth are we wasting time on a non-issue? Especially when the quote “He said: “We could still operate within that 1960s bilateral agreement” which established mutual flying rights between the Netherlands the UK” is found down the line. It is actually Pieter Elbers, the chief executive of Dutch national carrier KLM, who gives us value with: “It’s a worry. The instability and uncertainty is not good for business. However, it’s premature to go into this will or won’t happen“, which is actually right on course. Any action now is just premature for now and this visibility for Michael O’Leary whilst this is 2% of a saturated business is a bit out of whack on the best of days. A small outdated statistic is: “On a typical July day there are around 30,000 flights across European airspace“, 30,000 flights! Now we can agree that in July plenty of people get on a plane for an annual vacation, yet consider that we are talking about 8-12 million people per day (a wild guess in action). So when we consider Ryanair giving us grief over his 2% fleet, he should perhaps take a gander towards other shores?

This all follows with two more quotes “Brexit has already forced other airlines such as EasyJet into moving aircraft to enable continuity of business” and “Sorahan said Ryanair had planned to grow by about 15% in the UK last year but had instead posted growth of about 6%” The first part gives strength to the statement by KLM executive Pieter Elbers, ‘it’s premature‘ which gives us that some executives like those in EasyJet have a bigger grasp on their continuity of a bonus, than a sound approach towards a saturated market. The second one gives us that Ryanair missed its forecast by nearly 10%, so is this really about some Brexit deal, or is this about an airline that missed its target by 10%, from a 2% group. I am even amazed that this is on the radar of Neil Sorahan. When we consider the Financial Times last year, we see (at https://www.ft.com/content/f337fb7f-b4ba-3ad8-b50b-c698dd7a2adb), where we see “Revenue was €6.54bn, up 16 per cent on the year and only a nudge below analysts’s forecasts of €6.55bn” as well as “Ryanair said it expected net income in the current financial year to increase 13 per cent to between €1.38bn and €1.43bn“, which was off by 50%, so as Brexit was not in the referendum at that point, we get a slightly different view. There is no doubt that there will be a few issues in the post-Brexit era, yet to immediately go into ‘panic mode‘ by halting flights seems like an overreaction, especially as there are 1294 alternatives.

Saturation, when you can no longer absorb or dissolve!

Market saturation is a weird point. I remember meetings in the 90’s where I was part of a group of Americans and they were unable to fathom the term ‘market saturation‘, they regarded it as some fictional state of mind. The question becomes, are the airlines in a state of saturation? Now, consider the question how many of the 30,000 flights are actually an issue, especially with the fact that Ryanair has a mere 2% vested in the UK flights? Now we get that we have to look at it from the other side of the table. 10% of its fleet operates from one of 19 UK airports, so we get that there is a possible issue in the future. Now consider that Ryanair is a commercial operation that requires to have profit, which means it needs to keep its cost as low as possible. Which is a fair goal to have and when you are working a low cost range, you are definitely worried on what Brexit will bring, yet at present, it remains a premature act. Still the underlying score remains a valid one, what does a company do in a saturated market? Well, apparently they whine against journalists. OK, that is not really fair! I admit that, but jumping the shark at this point as politicians are still trying to get their bearings in a place where the facilitation of profit is the major taco to content towards, against whatever natural confrontational issue gets in the way.

That was a mouthful, so let me take a moment to set that in its right perspective. The EEC, EU, or EC; whatever name you want to give that bunny, it seems that the bulk of all European governments are focussed on profit in a place that has a stagnating economy. The problem from my point of view is that profit in a stagnating economy tends to limit those pursuing it to a spreadsheet life merely focussing on next quarter. In this economy the essential need will be to set an agenda towards the next 10 years, not the next quarter. The stock market, the speculators and forecasters state. They are setting the tone for panic modes and sour feelings, even as Ryanair is still moving forward. So, even as Ryanair is trying to get a stronger handle on its ‘Always Getting Better‘ programme, it needs to remain flexible to stay afloat (or flying). In this, they will soon feel a pressure going towards dashboards and short term reporting instead of growing a big data collective where they will enable themselves to get ahead of their main competitors. For that they need visionaries, not reactionists. In that Brexit will fuel the need for reactionists in panic mode, whilst the larger players need to do the exact opposite, take the possible hits they might get and after that move forward stronger, because if Brexit is any indication, the European mainland side will be hitting a recession shelf that is not unlike the 2008 events, but will take longer to overcome. In this several parties have been trying to postpose these events, yet the more postponing we see, the larger the effect will be when it hits and the longer it will last.

Again in this side we will see another emerging wave. The wave of saturation will reflect onto corporations and they will give us new waves of redundancies, where the groups of less significance will collapse opening up options for the flexible larger players, when that happens, those who do not have the data collections in place will lose out on several percentage points of margin in their commercial options. The size and scope cannot be predicted, anyone who claims to do so will not be worthy of your time in this. The fact that these systems have been delayed by a large amount of players will set them back and whilst they start fighting to get ‘something’ in place in the 11th hour does not mean that they remain a player, it merely means that they have invested in a system too late. In this I do believe that if we see a serious approach to their ‘Always Getting Better‘ programme, they could have some benefits, yet that can only be stated with any certainty if we compare what their main competitors offer against what is currently in place. Brexit has nothing to do with that, it is optionally pushing some players to up their game, we must accept that there is a reality that some industries will feel the impact of Brexit, the extent cannot be stated and should not be speculated on, the best solution is to be vigilant and see what improvements can be installed to increase the value of their company and the services that they provide. Big data is only one element and it is not a prophet on a pedestal, it is a tool that allows options if the company has certain levels of flexibility, whether that market is saturated or not, focussing on an event that the people want is not productive.

 

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Dangerous levels of extinction

Bloomberg reported Yesterday that Nicola ‘Sturgeon Sticks with Timing for Scottish Independence Referendum‘ (at https://www.bloomberg.com/news/articles/2017-04-01/sturgeon-sticks-with-timing-for-scottish-independence-referendum), which is a little odd after the previous one not so long ago. As I stated in earlier blogs, I am not against Scottish independence, I think that at the earliest point, Scotland should seek independence. Yet at this point it is not a good idea. The situation has not changed for Scotland, at present their budget is already 11% short and that is with the inclusion of decreasing oil revenues. This means that within 10 years there will be additional problems for Scotland. And this is only the start of their troubles. You see RTE reported only 12 hours ago ‘Spain would not ‘initially’ block Scotland from joining the EU after Brexit‘, the catchword is ‘initially‘, we see the quote “any part of the United Kingdom that becomes a state and wants to join the EU will have to apply. And follow the steps that are stipulated“, this is the part that matters. Basically until Scotland is truly independent there is every chance that Spain would object, and that is just one of the 27 nations. After that when Scotland is independent, the initiation into the EU would start, which could take up another 5 years, perhaps even more. That is the part Scotland faces, so Scotland is facing the consequence of independence, growing a ‘national‘ debt and after that we see the issue that Scotland would be debt driven and getting into the EU, a triple banking issue (debt, interest and inflation levels), all levels that Scotland would need to overcome.

For example, try googling Scotland and economy and see what you get. What economic achievements did Scotland have gained in the last two years? The Financial Times gives us a part I actually do not agree with (at https://www.ft.com/content/7c6f8ca8-0807-11e7-97d1-5e720a26771b) ‘The economic case for an independent Scotland rests on the EU‘, to that the Scottish response should be: ‘the dog’s bollocks they are!‘ In this Scotland needs to grow an economy, so far, as long as Nicola Sturgeon has been in power, not too much has been gained in that department. I am certain that there are options, I even mentioned one in April 2015, (at https://lawlordtobe.com/2015/04/05/the-labour-manifesto/) where I write “I am still reasonably certain that Indian generic medication could grow all over Europe if they have a foothold in Scotland, which allows easy access to places all over Europe“, so which Scottish politician had actually made any headway into looking beyond the EU, its ECB with big debt credit cards? Because when the credit card stops, Scotland will be in levels of hardship they have not seen before for the longest of times. At that point, who will the Prime Minister be when that happens and where will that person lay the blame?

In the end that is a Scotland that has no chance to build any future at all. How is that a good idea?

So as we see that Scotland is focusing on the USA with the added quote from Bloomberg “She also noted her political differences with President Donald Trump, who owns golf resorts in Scotland. During the election campaign, the Scottish government stripped Trump of his role as business ambassador for the country“, which sounds nice, but how did she fare with Corporate America? Scotland might be open for business, but where is the interest in Scotland? How about the Far East? How could Scotland become a hub for places like Indonesia, India, Pakistan and China? With Beef as an export, why not benefit by creating a European Halal Trade centre in Scotland? With ferries leading to Norway and a growing Muslim population, there are options, it only requires the right politician to open certain doors. I am not saying this is a solution, I am merely showing that options are there, the right people only need to look into the right direction. Because, as I see it, relying on the USA and ECB grants will not work, not whilst Europe is in the state it currently is. With Italy set to grow no more than 0.9%, its position is weaker than France and its youth unemployment still stands at 38%, implying that Italy’s infrastructure will remain under harsh levels of duress for several more years. The quote “Italy’s chronically low growth, low inflation and gigantic public debt burden (133% of GDP) make a potentially deadly trio” gives us even more to worry about (source: the economist), with the UK having triggered Article 50, France elections still having the consequence of a Frexit signal and Italy under the duress it is in, the European Union will only have Germany to be the large positive impact player on its economy and that one is not faring too well either. So this is the moment Nicola Sturgeon want to enter the EU whilst going independent? It is not just a bad plan, with a non-closing budget she will be drowning Scotland into debt and this debt will grow and grow leaving Scotland with no options for any future at all.

Yet we could go with the definition of Sturgeon that she is honouring. I cannot state whether this is the same for both Prime Ministers and fish, yet the International Union for Conservation of Nature gave us: “According to the IUCN, over 85% of sturgeon species are classified as at ‘risk of extinction’“, which is a large group that Nicola Sturgeon seems to be happy to join, the sad part is that she would like the whole of Scotland to join her in this, which is really not a good idea, or fair on the population of Scotland.

 

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