Tag Archives: ECB

A Turkey problem

We’ve all had them around thanksgiving, the turkey was still too deep frozen, the filling was incomplete and the oven was not firing up to the right temperature. In the US these are at times regarded as mum’s worst nightmare. Thanksgiving is a day when mum shines and her dinner is heralded and dreamed of for many nights before and a few nights after as well. No, this is not about the plumage; this is about that nation that is trying to basically piss off anyone they deal with. The first is seen (at http://www.france24.com/en/20180207-turkey-says-it-has-met-eu-criteria-visa-free-travel), where Ibrahim Kalin stated that “that Turkey had submitted all related documents to EU officials ahead of an EU-Turkey summit in March“, a Turkish official gives us: “the country has fulfilled all 72 requirements set by the European Union to secure visa-free travel for Turkish citizens to the 28-nation bloc“, this whilst we know that ‘Turkey had failed to meet the 72 criteria, including amending anti-terror laws‘, we might go so far as that of those criteria the bulk had not been met and with the additional issues now in play, there was never a more prompt moment to deny the visa-free travel options. More important, stating that ascension to the EU would not be possible within the next 50 years would equally not be out of the question. The Turkish approach to ‘securing’ Europe as discussed (at http://theconversation.com/turkey-is-using-syrian-refugees-as-bargaining-chips-as-it-moves-against-the-kurds-90904) is beyond tasteless. As I stated before, the acts by Turkey going back as far as 2002 are shown to be unacceptable. The larger issue is why Europe seems to continue to ‘find’ ways to reopen talks whilst the bulk of 72 requirements have not ever been met, even worse, their actions in Syria, their involvement with Qatar and semi union with Iran makes the matter worse. It makes a case that Turkey is the larger security threat for Europe.

The fact that Turkey is so corrupt that immigrant threats get to walk through Turkey, or via Turkish smugglers makes matters worse. Yet, there is no such mention at this time. Even more unnerving is the fact that there is still a meeting. The Commission confirmed Wednesday that Erdogan will meet in Varna, Bulgaria, on March 26 with Commission President Jean-Claude Juncker, European Council President Donald Tusk and Bulgarian Prime Minister Boyko Borissov, whose country holds the bloc’s rotating presidency. What takes the cake was the quote Commission spokesman Alexander Winterstein said the talks will focus on “subjects of mutual interest and recent developments in Turkey. That includes obviously the rule of law and fundamental rights“. Knowing that Turkey has only two elements on the brain, I wonder how this can end well. The EU is getting truly desperate. It is still facing Brexit and the news and the bitterness of Europe is showing them to be spiteful in every way. is that not nice to know that some place that ‘pretends to value’ freedoms, will not honour those who are no longer interesting in its membership? As I personally see it, the levels of corruption that flow through the ECB gravy train is making people nervous, because that part is becoming clear that this train has to stop functioning. the Financial Times (at https://www.ft.com/content/ade8e020-0b50-11e8-8eb7-42f857ea9f09) voices it in light of ‘non-compliance’, the quote “The five-page text (UKCompliance), circulated to EU member states by the European Commission and seen by the Financial Times, sets out how the EU plans to make Britain abide by union law until December 2020 while excluding it from decision-making“, does that sound like amicable? As the article states, it basically reduces the UK to a slave state having to enforce laws designed in the foundation of utter stupidity, whilst not getting a say in the matter. So, as that is pushed upon the UK, with the optional worse decision to continue talks with Turkey, The EU is basically setting a warm fire where the UK can decide to go postal, take the cold Brexit and cut all ties. The tidal wave of chaos that Turkey is likely to bring soon thereafter will make UK the best trade solution for Western Europe and Scandinavia. The document also emphasises that London must refrain from any “action or initiative which is likely to be prejudicial to the Union’s interests”, which sounds nice on one side, but the act that judicially for the UK is the national notice that counts, and that is the setting of any judicial setting in its national origin, it is not for the European Union to set that as anti-Union. Even more pronounced that in itself would constitute another reason for Turkey not to be allowed within the European Union as such. Should that be set aside for consideration, it could invalidate the terms for the UK to abide by, which is a small blessing in disguise.

It is the Financial Times, who in light of Brexit shows that Europe is filled with duality. The economic pressures it faces and the facilitation it requires as it has been playing the monopoly money printer at large for all causes worthless and overvalued. This is seen in several ways. In the first the ECB remained quiet on Mario Draghi and the G30 club, the media has silenced any actions since January 17th. In addition, Bloomberg reported “Mario Draghi said the European Central Bank has no choice but to brace for the possibility that the U.K. will exit the European Union without a transitional agreement“, form my point of view, the 5 pages that the Financial Times initially gave us, and that likelihood is only increasing. Perhaps having a few spiteful children on the Brussels side was not the cleverest of options as I personally see it, but then again. It is merely my view that some of these players want to continue their gravy train, a debatable view to say the least. Even as France has been outspoken and opposing any Turkish ascension to the European Union, there has been a silence from several other players. The fact that the Bulgarian meeting is still on for now, that in light of the Turkey violating international Law in Syria is also light for concern. The Jerusalem Post gives us “Speaking on BFM television, Jean-Yves Le Drian also said there were indications Syrian government forces were using toxic gas against civilians although the UN would need to confirm that“, that might be true, but at this point is Turkey also involved in those actions? Because that is the evidence that matters! You see the quote “Le Drian said international law “is being violated by Turkey, by the Damascus regime, by Iran and those who are attacking eastern Ghouta and Idlib”. His remarks amount to France’s toughest line yet on Turkey’s involvement in the Syrian conflict” might hold water, but only if clear evidence is given that Turkey actually broke international law. You see, from one point of view Turkey was not barred, stopped or told to leave by what should still be regarded as the legitimate government of Syria, as such Turkey ends up having an actual defence against the French claim and that could remain to be an issue. The fact that other papers are voicing the identical quotes does not make this issue more so true, the presentation of evidence does.

So even as Ankara is not meeting some thanksgiving any day soon, it basically soured the waters with the US, France, optionally Germany, Saudi Arabia and a few other members of the European Union. And there was I thinking that only Napoleon was stupid enough to wage a war on two fronts, oh no that Adolf dude made the same stupid error. Anyway, as things go we will see more news soon, because the entire march meeting even as the Netherlands has withdrawn its ambassador to Turkey, we see the Dutch former NATO secretary Jaap de Hoop-Scheffer mention that ‘Turkey is too important for the Netherlands and the Netherlands are too important to Turkey‘, the economic fires are pushed to a higher level, there is nothing like a former official to voice the needs that politicians are not able (read: allowed) to make. The ECB and its gravy train must continue. That is the imperative that the 28 bloc nations are trying to rephrase so that certain questions are not asked. I personally believe that it is all in extremely poor taste. In another source (Dutch Newspaper: Trouw) we see the Dutch Lily Sprangers, former director of the Turkey Institute in The Hague state: “Die problemen zijn geen reden om geen betrekkingen te onderhouden” (These problems are no reason not to maintain relationships), sounds nice in theory, yet when the Dutch fascist JanMaat was about to get elected you (read: the politicians at large) did not follow on that idea to improve options, you tried to silence it to death, when he ended with 3 seats you all united to get that undone. It all seems a little two-fold in the light of the events that are happening.

The Dutch have been trying to improve relationships, which remains valid and they are not the only one, but in light of the 72 non-achievements to get some report going so that they could be included in light of the hostilities shown towards Brexit, gives me the shivers. A club of inclusion tends to be the most dangerous kind, because (as I personally see it) it allows for the utter corruption of ideals that should have excluded parties from the very start.

So then the media reports on the March 26th event. Will I still sound wrong to you, or is that and the lack of response by the ECB on the G30 club a clear signal that a lot of things are wrong in Europe and Brexit might have been the one sane move to begin with?

Did I oversimplify issues again?

 

Advertisements

Leave a comment

Filed under Finance, Law, Media, Military, Politics

A linguistic joke

The British Metro came with a hilarious article a mere 12 hours ago. The quote is not enough; it already starts with the title. With: ‘British children aren’t learning foreign languages after the Brexit vote‘ is just too funny. We can clearly state that they were not learning foreign languages before Brexit either. To be more precise, not for decades! And, why should they? Now, let’s be fair, there is a benefit to learning languages. For the Dutch it is essential, because only the Dutch (and perhaps the Flemish) can understand the Dutch. So they (me in my youth) got to learn German, French and English in our first year of secondary school. I dropped French in favour of Physics and continued. In the years that followed I learned a few more languages, and as such I can get by across the planet. It was only in Asia where I learned that English is not a language that was used much, yet until that moment, I had learned that nearly everyone spoke English (except the Americans, they have a weird variation on it). So from that point of view, and when you see “The council claims the lack of language skills is holding back international trade performance by nearly £50 billion each year and worries there could be a gulf once the UK leaves the EU“, I merely reply that I want to see evidence here! I want that the British council to show actual data proving this, because at present, the British council is showing to be a joke. This joke is personified in Schools advisor Vicky Gough who stated “At a time when the UK is preparing to leave the European Union, I think it’s worrying that we’re facing a language deficit“, well Vicky, for your information the Brits have always been language deficit since before World War 1, so we can agree that your logic is faulty at best. This is followed by “And I think without tackling that, we stand to lose out both economically, but also culturally. So I think it’s really important that we have a push for the value of languages“, I will agree that she has a case on the cultural side. There has always been a cultural benefit to knowing languages that much we can all agree on. But in this day and age, should we focus on the local languages (German, French and Spanish), or should we concentrate on the global economic area languages (Hindu, Chinese, Arabic and Japanese)? That is a much harder consideration to make. You see do you cater to your local setting or are you catering to a workforce to become global. This is not an easy question to answer, because the planet is in flux and what is now wisdom might be folly in 5 years, so after 6 years to truly have linguistic skills in some areas; those areas are no longer viable as international players, so how does that pan out? So when we see “A report by the British Council claims Spanish, Mandarin, French, Arabic and German are the top five languages the UK will need post-Brexit“, my view seems to be correct, yet in what setting? The Spanish only speak Spanish (for the most), so why adhere to that side? So why would the UK need German and French? Most of them speak English and hiring a foreign national in your company is likely cheaper and more productive, that is if you have quality business with that nation, if not, why bother? At that point, the article comes with an interesting view “One pupil studying Mandarin at London’s Alexandra Park School said: ‘We can’t just presume that countries are going to learn our language, because if we don’t do the work why should they?’” It is a good point, but those people also realise that Mandarin is one of the most complex languages in the world and if you are not born in that environment you start with a large disadvantage. Now, there are plenty of reasons to study Mandarin and learn the language, but on the premise that it might lead to a job is long term folly, taking the language up when you are to be in China, perhaps even after you arrive makes a lot of sense, perhaps more sense. Now, we can see that the only way to do business in Saudi Arabia is to learn Arabic and plenty of brits trying to make quick bucks are up to the challenge, but that nation has its own set of rules, customs and culture and those all need to be taken in, merely learning the language will not get you there, so in my view, not only is the article to some part a joke, it is merely another jab at giving stress in relation to Brexit. So, until Metro publishes clear evidence from the British council that the UK is missing out on 50 billion, the entire matter is hilarious and folly at best.

And it is merely one of several articles. the Guardian with ‘Britain’s tired old economy isn’t strong enough for Brexit‘, Computer Weekly with ‘We must avoid the Brexit risks to London’s tech community‘, and Clean Technica with ‘Current State Of Brexit Likely To Leave UK Environment Worse Off‘, all fearmongering, and Social Europe is giving the people: ‘Reversing Brexit: Legal Route Via Vienna Convention‘. Social Europe is actually setting the premise to protect bankers and the IMF. I have not seen such levels of what I regard to be deceptive and naive conduct since the British Prime Minister, Neville Chamberlain, who stated on September 30th 1938 that the British people would have “Peace in our Time“. Do you remember what happened after that? In the end, on the Allied side alone, up to 3.7% of a population of 2.3 billion ended up dead, both military and civilian, excluding 7 million Germans and 26 million Russians. I think that fearmongering and the naive approach to all this needs to stop.

It was never said that there was not going to be a hard time, but it seems to me that the financial sector has now become so afraid of losing the ability to fulfil their greed driven needs that they are using every media outlet to spread the fear and see if they can get a recount whilst getting at least 4% into the Bremain group.

In all this, the Guardian article makes a decent point, but does so by keeping certain parts unmentioned. With: “Manufacturers were unable to make things cheaply, reliably or efficiently enough against the headwind of a high-value currency, forcing many to give up. An economy that boasted 20% of its income coming from manufacturing in the 1980s found it was the source of barely 10% at the beginning of this decade” they are telling you the truth, but they do not tell you that opposing this were China, India and Japan, with almost no labour laws, whilst both India and China had no protection for child labour, so these nations made goods with 90% less costs, giving them a large advantage. Even now, in 2000 some sources gave us that there were approximately 11,500,000 children at work between the ages of 10 to 14 in China. This violates article 32 of the Convention of Rights of The Child. So if the Guardian article was being fair, why not mention these parts that clearly impact it all in a negative way?

So as we see the linguistical joke that Metro brought and the additional articles that raises questions as they go overboard not mentioning things, we need to consider why such presentations are not clearly shown by the media. Even the IMF is involved in all this, whilst their prediction have been wrong regarding the UK three times, so should they be given any level of reliability as they try to downgrade the UK, whilst upgrading the other European Nations for 2018? I know that this might be a hard year for the UK, yet as the stimulus train called ‘the Draghi Disaster‘ is running its final stage, the moment that ends, will spell even harsher environments for Europe and particularly France who could see a downturn of their economy for 0.5%-0.75%, this implies that they will barely be above 0% for the three years that follow. In this I might be equally wrong. Even as France24 (at http://www.france24.com/en/20180122-macron-hosts-140-business-leaders-versailles-investment-france-economy), predicts “Economic growth has been forecast to rise to 1.9 percent in 2018 by the central bank”, which is already slightly too positive. Even as it books the Toyota move into the positive, France will soon realise that at this point Toyota is likely to push for additional rebates beyond the 25% corporation tax (as is Microsoft for 4 new data centres), which will closer to the end of this tax year will show up in the news as ‘unfortunate bad news on the economy due to a miscalculation’, it is not the first time and the French are not the first to do this. Yet in that, we can see that the IMF boast is overly positive towards Europe, implying that the view from that point shows the UK economy as stated to be overly negative. I personally see it as another ploy to undermine Brexit that could bite them in much harsher ways down the track, if the media is actually able to show some balls standing up to large corporations.

So even if I see the linguistic joke as a large one, there is no denying that France is clearly opening its doors to certain people and in only that moment there is a sense of truth in the words Vicky Gough, yet what is equally not given is that this is the first time since I started my first job in 1979 that such a view is given by France. With the graying population they are not the only ones doing that and as such the working population will make a drastic change, I cannot predict how it will filter out for France, but at least Emmanuel Macron is making active changes to an ancient unyielding protocol and that might be the best news of all for France, that alone could spell my realistic numbers to be slightly less positive than the actual numbers will turn out to be.

 

Leave a comment

Filed under Finance, Law, Media, Politics

NAZI Europe is coming

There is a danger in the field. This danger has been there for some time and most of us have been ignorant and evasive on this. I think that I myself am to some part guilty as well. It is easy to blame the media in all this; we can Google stuff we can seek to find information, even if we do not always care. We can learn, the question becomes, do we?

So when we considered last Thursdays news (at https://www.express.co.uk/news/world/906727/Bulgaria-Turkey-EU-Brussels), we might have overlooked it, because for the most, even in Europe, who cares about Bulgaria? In addition, when we see: “Mr Sirakov added “we need Turkey for this process”” we might think, that the Bulgarian Ambassador has no real value to add, but we would be wrong in this. That is given when Reuters reports 3 days later (at https://www.reuters.com/article/us-eu-germany-bulgaria-turkey/merkel-welcomes-eu-turkey-meeting-to-improve-ties-idUSKBN1F90XU), that the idea for a “possible summit” is actually very welcome. So here we see the beginning for a NAZI Europe. Not because of Germany, but because of the optional inclusion of Turkey. When we consider that Turkey is not fighting the enemy in Syria, but “a ground incursion into the Kurdish enclave in Syria known as Afrin a day after intense aerial bombardment that signalled the opening of hostilities in a new phase of Ankara’s involvement in the war across the border“, which is nothing less than the continuing genocide of the Kurds, yet now in Syria, we need to ask ourselves why Europe decided not to convict Recep Tayyip Erdoğan to the gas chambers. You remember the NAZI way to get rid of issues they did not like? So after we were lulled to sleep that Turkey would never be admitted to the Eurozone, mainly because it failed 17 parts in the admission process, we now see Germany try to set the stage for another summit, optionally to include Turkey in a speculated near future. This dangerous step is essential for Europe, because the ECB has stretched itself beyond what was possible, so allowing Turkey in opens doors for them, whilst knowing that they are adding a nation that is not only closer friends with Iran, a nation that is skating on the fringe of what is tolerated (read: rockets to Yemen), it is equally ignoring a Kurdish genocide. So when we look at the article and we are treated to: “European Commission President Juncker said the EU and Turkey would see no progress in their relations as long as Turkey held journalists in prison“, we need to wonder how delusional President Juncker is to set the need of journalists over the act of genocide? That alone is disgraceful beyond all reason.

The even more distasteful part is that in opposition to Hitler’s European tour of 1939-1945, we now see that the Europeans are allegedly not really in opposition, because it is not really hitting their borders, so as Turkey is allowed to do whatever it wants, it is allowed to complete its ‘need’ for genocide, Europe ends up allowing a mass murdering nation into the fold, because the ECB needs are outstripping the decency of the European population. How can anyone feel good allowing themselves to become part of that?

So as we saw last Friday’s news (at https://www.reuters.com/article/us-eu-turkey-minister/turkeys-eu-minister-rejects-any-option-other-than-full-membership-idUSKBN1F80QZ), I wonder what is acceptable. Now let’s be fair. When we see the words of Turkey’s European Union Affairs Minister Omer Celik, he is not doing anything wrong, he is merely representing his nation as he is required to do and the words “rejects any option other than full membership” is fair enough. Who wants to be a part member, or an aspiring member for the time that Turkey has been eagerly awaiting to board the European Gravy train. Yet is that same setting, the EU should have categorically rejected it, as one bloc. Not to play the Bulgarian game, the Brussels game and now with “Chancellor Merkel told a joint news conference with Borissov in Sofia, adding “we need orderly relations” with Turkey to solve the problems“, we see the voice of some sort of reason, some sort because the entire issue on what happened in Turkey and the genocide question is basically set to the side, to the side to be ignored. This is a dangerous setting, because the EU was supposed to be about a better place, not about a place that finds genocide less inconvenient than its economic opportunity. So when we see “EU accession talks with Turkey were frozen in December 2016” we need to realise that there was a reason. So when we see “Authorities in Turkey have jailed more than 50,000 people and shut down some 130 media outlets in a major crackdown after a failed military coup in 2016”, which there is no mention of the atrocities against the Kurds, we need to wonder how far along the concept of NAZI Europe has come. Because the actions of Turkey has been questioned too little, whilst their turncoat approach that goes back to 2001 has been clearly documented and it seems that the media at large is eager to not report on any of it overly clearly, so as the media leaves it unmentioned, why would we care about those journalists in jail? Compared to the murdered Kurds that part should not measure up to any degree.

In addition, when we see (at https://www.theguardian.com/world/2018/jan/21/turkey-starts-ground-incursion-into-kurdish-controlled-afrin-in-syria) the part with “a military offensive called “Operation Olive Branch” by the Turkish government, with dozens of airstrikes hitting more than 150 targets in the Kurdish-dominated district from late on Saturday afternoon“, it is my personal opinion that we are being lied to, a visible marketing that is in direct correlation to what the Americans called “Operation Enduring Freedom“, which ended up with the conclusions by retired Army Colonel Hy Rothstein, commissioned by The Pentagon to examine the war in Afghanistan that the conflict created conditions that have given ‘warlordism, banditry and opium production a new lease on life‘, so how exactly was that an enduring freedom? In that same light, with some Olive Branch operation, where Turkey’s military border operations is shelling and bombing the maximum hell out of a Kurdish group that has been the US’s key Syria ally in the war on Islamic State an Olive Branch? In addition, as Turkey claims (not stating whether that fact is right or wrong) the “YPG, a group it considers a terrorist organisation, is an extension of an outlawed Kurdish rebel group that it is fighting inside its own borders, and it has found common cause with Syrian opposition groups who view the YPG as a counter-revolutionary force in Syria’s multi-sided civil war“, it seems to me that Turkey is playing both sides against the middle in an effort to complete its genocide against the Kurds. The YPG is mostly ethnically Kurdish, but it also includes Arabs, foreign volunteers, and is closely allied to the Syriac Military Council, a militia of Assyrians. In addition, we get from several sources: “the YPG is the “most effective” force in fighting ISIL in Syria“, so as Turkey is fighting them, does that not make them an ally of Islamic state? There has been issues and there are issues that need longer debate, yet for Turkey it seems to have been easier to merely imprison and kill whatever is Kurd and it seems that Europe is willing to go along with Turkey after the fact, after they are done wiping the Kurds out, at that point Turkey can report that the Kurdish issue has been dealt with and financially greed driven Europe can agree on the next setting, whilst allowing a genocide driven nation into their midst. And in the pressures of Brexit and anti-brexit news cycles, the Turkish consideration is merely under reported on, so that certain parties can get what they desperately need.

How is this acceptable, in any way, shape or form?

So even as the Guardian reports (at https://www.theguardian.com/world/2018/jan/21/recep-tayyip-erdogan-kurds-syria-risky-gamble-could-quickly-turn-sour) that this gamble could turn sour. The truth is that whilst the other parties are not reacting, Turkey can continue to shell the Kurds to his hearts delight. In reaction, there is one part that clearly matters. With “All three – Iran, Assad and Russia – would rather have the Kurds controlling swaths of northern Syria than Isis, similar Salafist groups or US-backed, anti-regime rebels such as the FSA“, so the one group that can take care of ISIS will be annihilated, which makes Turkey an optional protector of ISIS. So as we see “they are meanwhile promoting their own self-serving plans for a post-war settlement“, we can see that this has always been the case and Turkey needs to realise that soon enough; Iran, Syria, and Russia, neither seems to have any need or tolerance for Turkey, or Recep Tayyip Erdoğan. When that happens, what will they do? Come crying like little girls towards the US and Europe? So why should Europe chance the issues, that whilst the wisdom of Hugo Chakrabongse Levy, gave us his artsy wisdom view with “I got 99 problems but Recep ain’t one“, it seems clear enough to me! Did I oversimplify the problem for Juncker? Well, sorry about that!

So even as Reuters reported (at https://www.reuters.com/article/us-mideast-crisis-syria-usa/u-s-urges-turkey-to-exercise-restraint-in-syria-operation-idUSKBN1FA0WO) that restraint is needed. we see in equal measure “supporting Ankara’s legitimate security concerns, “we urge Turkey to exercise restraint and ensure that its military operations remain limited in scope and duration and scrupulous to avoid civilian casualties,”“, yet we know and we have seen that any Kurd is regarded as unwanted and obsolete, so will this warning be heeded? So where we see: “U.S. Secretary of State Rex Tillerson spoke by phone with his Turkish and Russian counterparts on Saturday”, we need to acknowledge that so far merely 8 hours ago, that Bloomberg reported (at https://www.bloomberg.com/news/articles/2018-01-21/turkey-attacks-kurds-in-syria-as-u-s-warnings-ignored) “Turkey says it is invoking self-defense under international law, assuring Syria that the offensive was solely targeting “terrorists” and that its forces would pull out after meeting its goals. French Foreign Minister Foreign Minister Jean-Yves Le Drian called for an emergency United Nations Security Council meeting, drawing a rebuke from his Turkish counterpart Mevlut Cavusoglu on the grounds that such a move would amount to supporting for terrorism“, so not only is Turkey ignoring the news from others, it is doing what it damn well pleases, and this is a nation you want to consider into the EU via a shortened summit? I’ll let you ponder that when that EU invitation is handed out how much of a NAZI nation the European nations have become a part of, because in the eyes of the ECB and their financial growth, being a NAZI nation is a label, the economy is a reality that they cannot solve in other ways than through expansion. In that light when we revisit the Treaty of Locarno of 1925 and the German Wehrmacht entered the demilitarised Rhineland, we see that there was condemnation from Britain and France, yet neither nation intervened. It was a mere 5 years later when the fallout of that inaction hit the Brits and the French squarely on the jaw and it would diminish Europe to a larger extent to rubble. Perhaps there are photos from that era, from perhaps London, Rotterdam, and the number of civilian casualties. In that light can anyone afford to allow Turkey to continue, or to give them any level of EU consideration?

I reckon that we will learn the answer to that soon enough; the danger remains that Europe gets to learn this lesson the hard way.

 

Leave a comment

Filed under Finance, Law, Media, Military, Politics

Two streams, one view

As I see the news pass by, events shown on separate media, I notice myself wondering if my life had any meaning at all. I was young and I went to the Middle East in 1982, I would return in 83 and 84 only to learn that there was change. Terrorists like Hezbollah and Hamas were only small and Hamas rose as I would see in 1984, yet I thought that change would be inevitable. I saw Hezbollah as nothing more than pesky small minded terrorists, a tool to be used by Iran and Syria. Yet even as Lebanon was trying to move forward, there were signs in media and some places that the US needed Syria too much, in their case dealing with Saddam Hussein and as such many of us thinking we would fight for peace, we only fought for the borderlines that the US decided needed to be in place. It must have been the late 80’s, I was not longer in the Middle East and not all clued in towards the events of the day there. You see DARPA had not rolled out the internet at that point; ARPANET was not available for the audience at large. So today I see that the more things change, the more they stay the same. Now we see another push against Hezbollah. You see Saudi Arabia has had enough of those terrorists and is pushing back hard, it is also willing to push against Iran. I see two issues. One is that this issue will be bloody and even as we hope for the victory of Saudi Arabia there, there are more than just a few markers showing us that the three largest players (US, Russia and UK) are not completely in agreement whether the Middle East should have one clear dominant party. The issues in Iran, Egypt, Saudi Arabia, Libya and Kuwait that have been going on for half a century should show that. If that had not been the case Hezbollah and Hamas would have been little more than an inconvenience and they would have been dealt with a long time ago. So even as I see certain steps being taken I need to wonder if Saudi Arabia is pushing for a resolution, what will the larger picture show as it shifts. As that unfolds where will the US and Russia stand? What actions, or inactions will they use to leave the Status Quo in the middle east in a place called ‘as is’? The evidence for the longest time has shown that they pronounce whatever allies they have, but in the end, they only care for their needs and options. Now, this is not wrong or immoral, it is merely the way any nation plays its game. It is not a new game, it goes back even before Nicola Machiavelli thought it was a god idea to write down certain options for politicians to be.

As per Friday morning, we see: ““Due to the circumstances in the Lebanese Republic, the kingdom asks its citizens who are visiting or residing there to leave immediately,” a Foreign Ministry source quoted by the news agency said, adding that Saudis were advised not to travel to Lebanon from any country“, so even as we can merely speculate on what comes next, the onus is now pushed on Iran and what it is going to do with its terrorist ally Hezbollah. There is one opposing side which was shown by Reuters (at http://www.reuters.com/article/us-yemen-security-saudi-insight/deep-in-yemen-war-saudi-fight-against-iran-falters-idUSKBN1D91UR). With: “The dysfunction is a reminder to Saudi Crown Prince Mohammed bin Salman that his campaign to counter arch-enemy Iran in the Middle East, including threats against Tehran’s ally Hezbollah, may be hard to implement” we acknowledge that Iran has resources and skills and they are driven, both sides clearly are. In my mind, is the additional theatre (read: change of scenery) a workable factor? It does put larger pressures on Iran to get the logistics and goods underway, which will be their weakness to some extent. It is equally an issue how Russia will react. They might not openly act in this placement, yet the clear support to Hezbollah and as the times of Israel states: “the truth is that since Russia began its open military activities in Syria, Hezbollah fighters are also learning Russian methods of war, becoming familiar with advanced Russian weaponry, coming to understand the latest Russian technologies, and in some cases, actually fighting alongside Russian special forces“, we might comprehend the skills and training of the Spetsnaz Malcheks, or the ‘Войска специального назначения’ as they call themselves. In one part Avi Issacharoff omitted or decided not to implement one view in his story. In the end when the Spads are not holding their hands, Hezbollah remains what they were trained enthusiastic terrorists, they are only an army in the smallest sense of the total concept, this also means that as logistics falters, as support dwindles the armed Saudi forces will be more than a match and should gain the upper hand. Now, this can only play out if there is a stalemate between Russia and USA, because if the USA backs down and Hezbollah gets open on the ground Russian support, it becomes an entirely different slice of cake and all bets are off at that point. Only the Russians could push Hezbollah in way that the Iranians could never do. You see, if Iran enters the theatre the game changes as they become a clear and present danger to the state of Israel, their vocal insinuations made that so, so as Iran is trying to get a foothold whilst Israel has a few ways to counter them, we will see a more underground event of escalations where Iran is unable to counter a war they never have faced. You see their words (Iran that is) might look good on the news and on PowerPoint presentations, yet in the true data parks there is no setting, because in the end, this generation of Iranians have never faced anyone like Israel before and their faith in their own internal governmental presentations will make them even less prepared. So at that point it is merely a scuffle between Hezbollah and Saudi armed forces and in that equation there is no option of even a remote stalemate for Hezbollah. Is that the goal? I believe that Russia saw Hezbollah as a tool for what they needed, the US has always been hostile and Europe requires high earnings, so the ECB is very much not in favour of any outspoken hostilities against anything that can downgrade their earnings, so they are seemingly steering away from these events as much as they can, yet I will admit that is just me speculating on European events in this case. Even as London is more and more outspoken anti-Hezbollah. Amsterdam and Stockholm are not taking that path. In my mind it is the liberal multicultural flag that they embrace, in that atmosphere a group like Hezbollah can easily hide under this ‘veil’ whilst hating multicultural events as much as possible.

This again has speculative sides, but it is based on solid data and events. You might think that it does not matter, but it does. As more and more nations in their liberal mindset hold off on an actual war on terror, being it for economic or philosophical reasons. Not being part of it is equally a problem down the track. So as we move back towards Lebanon and Hezbollah, we need to realise that not only will this become ugly to a larger degree, there is every chance that unless certain actions are taken the issues seen in Aleppo will be seen in Aleppo too, there is just no way to tell to what extent. In this we can look at Survival Analyses (or listen to the song ‘as time goes by’), where the point in time and the prolongation of all this is the setting on just how much Beirut will look like Aleppo in the end, time is the only factor required here and the people in Europe know this. So as we see the news prepare on how there should be talks and there should be armistices, they all better remember that it was their need for status quo that is pushing the consideration for a terrorist organisation.

Who in Europe would have ever thought that support of a terrorist organisation would be the cool thing to do on September 12th 2001? So consider that and now wonder why Europe is, for now, again sitting on their hands or even contemplating siding to the larger extent with Hexbollah? Yet there is also good news because with the actions by JP Morgan to push into large chunks of the Middle East and more notably the push towards the Kingdom Holding Company. You might think it is not related, but it is. It gives the view that JP Morgan is a facilitator for setting maximised profits and these profits are not to go towards France. There has been a thought that the US is not commitment, but as there is profit in war, the clear fallout of any war is opportunity. It seems to me that the US wants to get as much profit out of that as possible, so as the dominoes are pushed into place, we see a situation where the media proclaims JP Morgan to be a mere financial advisor. I believe that to be incorrect. Even as Reuters reported “JPMorgan is in early talks with Saudi Arabian companies about overseas listings“, that might be true, but JP Morgan has been pushing itself and its ‘friends’ into powerful places where lucrative revenues are not set in millions, but in billions. I cannot answer whether Credit Agricole did the right or wrong thing, they are pretty clever all by themselves. I think that the Saudi issues in play now are pushing for polarising fields of options and opportunity on a global scale. In this case my view will be proven over the next 2 years as we follow the money. They question is where the source will be set and who gets to fill their bucket list from that well. when the options are returned in billions there will be plenty of players, although in this instance I believe that the outside opportunities (non-Saudi based companies) are offered to the friends of JP Morgan and them only, which is again a speculation. Whether I am right or wrong will be initially shown in the next 20 weeks.

There are however facts available to see that there is a direction in place. Reuters show on part (at http://www.reuters.com/article/us-jpmorgan-saudi/jpmorgan-sees-more-saudi-firms-looking-at-overseas-listings-after-aramco-idUSKBN1D7107), some might think that “He said listings in New York, London, Hong Kong or Singapore might help increase the liquidity of these companies and make them attractive for international investors, he said” is the part that gives the goods, yet it is the part not seen and more interestingly not implied that gives power to it all. The implied part is seen with “Commenting on the anti-corruption drive, Pinto said: “If it is done in the right way and for the right reasons it is good to do for the future of the kingdom.”” It is however only the first part. The news given with ‘Saudi Arabia detains 201 princes, businessmen in $100 billion corruption probe’ (at http://www.abc.net.au/news/2017-11-10/saudi-anti-corruption-probe-finds-$100-billion-embezzled/9136608). This was not a sudden part, this had been in play for some time. It was not merely the fact that at present 201 people are now in custody. Even as we see mention of Iran and the Lebanon pressures, we see that there is a larger play. His Royal Highness King Salman bin Abdulaziz Al Saud and Crown Prince Mohammad Bin Salman Al Saud have been on a path to get the nation reformed and moved away from oil dependency. In this the pool of plenty does not last too long when 100 billion get lost one handshake at a time as more and more people are connected to unlimited resources and wealth. As the press seems to be focussing on the crown prince and the ‘wild ride’ he created, there is a larger issue that is not too much in focus. No matter what the sceptics state, There is a clarity that Saudi Arabia is seriously considering that the age of oil is dwindling, as this happens they need to be able to push into other directions and they do have the wealth to create vested interests in pharmaceuticals, consumer goods, consultancy services and educational advantages. Forbes has had its share of articles on the matter, and whilst some look at ‘Saudi Arabia Looks To The Private Sector To Meet Growing Healthcare Demands’ it seems to me that 5G facilitation has much larger and more profitable sides as other providers are considering what to do, Saudi Arabia has the option to facilitate to the largest 4 cities and exceed in opportunity what Sweden has for its entire nation. When there is such a population (9.5 million) in 4 cities, there is an option to grow and grow fast. Now we know that there is a lively market already, but the idea that other services could be added grows the Saudi options to add markets and manufacturing opportunities through investment. I all this JP Morgan is potentially the spider in the centre of the web, growing in value and wealth from all sides at the same time. There is no way to state why Crédit Agricole walked away from those opportunities, but I feel certain that they did not walk away, the merely moved to a place around the corner. Even as the Financial Times (at https://www.ft.com/content/0e629bab-494c-34d0-8fe0-f71c8b089118) show mixed results, yet I believe that this French bank is moving into different fields, acquiring other banks and setting new goals. I have no way to tell on the why of it but I feel that moving away was only one as the clever people in this bank have agreed on a strategy that allows to grow faster and on larger fields. How?

We will learn this over the next 20 weeks. Yet no matter what is done and how the banks react is not a given, the direct dangers on how things escalate in Lebanon and with Iran seems to be crucial in all of this and I reckon that we will see the shifts quite soon. These shifts will not be through armed conflict, but will rely on the pressures and stresses that exist at present. In this Europe seems to take a ‘diplomatic’ stance (at http://www.ecfr.eu/article/commentary_destabilising_lebanon_will_only_strengthen_hezbollah_7235), yet with “Europeans should veer the other way, taking measures that aim to preserve Lebanon’s stability and governance structures, and to prevent wider conflagration. Iran is clearly a key source of regional instability, and Hezbollah has become increasingly assertive in Lebanon” it seems to advocate a path of inaction, 3 decades of inaction have shown that there is no solution on that path, a stream of casualties, of non-actions and broken promises. Saudi Arabia (and the USA) both had enough, and as Iran seems to be an annoying thorn in the side of Saudi Arabia, they have seemingly decided to take Hezbollah out of the equation. This will be interesting, because the moment Hamas and Iran realise that the gig is finally up, I wonder how must tearful pleads of ‘negotiations’ will be shown on nearly every soft hearted news channel on the planet. Perhaps a recollection of March 2016 is needed. With: “Hamas on Sunday sent a delegation to Egypt in an effort to beseech Egyptian security officials to stop destroying its tunnels out of Gaza. These terror tunnels, employed by the terrorist group for nearly a decade, are used to store weapons, smuggle supplies, and infiltrate enemy territory – Israel – as well as carry out surprise attacks in which people are killed and soldiers abducted.” (source: Breaking Israel News). It reads like “please let us be terrorists a little longer, we need the tunnels to do naughty things”. There is every chance that this falls on deaf ears, because as Israel is optionally no longer pressured in possible two front wars, they can fully focus on Hamas whilst Saudi Arabia will only have to deal with Iran after that. It will truly change the Balance of Power in the Middle East with Saudi Arabia as the only true power in that region, all because to a larger extent, Europe decided to remain in a self-imposed state of inaction. After three decades they still haven’t learned that inaction against terrorists will never ever lead to any solution.

Yes, there are a few elements of speculation from my side, but it is based on gathered facts and it I do not believe it is less likely on the balance of probabilities, it is merely one optional setting in a larger game that has been played for much too long.

 

 

 

1 Comment

Filed under Finance, Media, Military, Politics

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).

 

Leave a comment

Filed under Finance, Law, Media, Politics

The new Monopoly game

Do you remember playing monopoly? Did you ever play it? I grew up loving it. I am not some realtor, some real estate dreamer beyond the dream of having my own place. Most of us are like that. Just the time when I was young and the family played that game, or plying it with a couple of friends. I ended up having several versions, including the replica original with coins, in a wooden box, just a cool thing to have. So when we consider this game, as the prices of the streets were shown in those days; we knew that blue was the highest an always out of our reach. I lived in a green property for some time, so life felt good, yet today, Yellow, Red, Orange, Purple and light blue are no longer in my view of affordability, in the best case, I might be able to get one of the brown coloured properties. This is how the market changed in a mere 22 years. From an optional 80% of the map to a mere 2 out of 16, that is all that was left to me. So when I read ‘Total UK wealth tops £10tn thanks to City and property boom‘ by Larry Elliott (at https://www.theguardian.com/business/2017/aug/08/total-uk-wealth-city-property-homes-inequality-saving), I just had to laugh. I understand that he might be trying to have a sense of humour about it. Yet when we see “A booming City and rising house prices provided a double boost to Britons holding assets in 2016 as they pushed the nation’s wealth through the £10tn mark, according to a new survey“, the question becomes: ‘How much of that is NOT owned by foreign investors?‘ Is that a weird question or what? Even as we see “Since the better off held a greater proportion of these assets, 40% of the gains of rising share and bond prices went to the richest 5% of households“, is ‘households’ correct or should it read clients represented by British law and accountancy firms, representing foreign interests in the UK? With “The £3.9tn increase in the value of residential property and financial assets owned by UK residents represented a 59% rise, whereas prices rose by 39% and gross household income was up 37%“, we see again the ‘UK resident‘ part and when we take a look at the government (at http://www.ukimmigration.com/investor/uk_investor_visa.htm), we see that basically any person investing in any property (as the London bulk is well over £1 million, the threshold for foreign investors is reached), which beckons the call, when we start digging into UK residents versus UK citizens, how will this all end? Lloyds shows even more sense of humour with “Lloyds said its figure excluded non-residential property and assets held by charities and other non-profit institutions“, which clearly includes all the foreign investors and they are always in it for the profit. It is the final part that gives the new consideration “However, a continued low mortgage rate environment, combined with an ongoing shortage of properties for sale, should help continue to support house prices over the coming months“. This now gives the premise, have the current and previous governments been guilty of betraying the British people by setting the stage of ‘ongoing shortage of properties for sale‘, in this we see the historic part that former Prime minister Margaret Thatcher was the last of the prime ministers giving a rising and clear need for social housing. We see this in the 2015 article from the BBC (at http://www.bbc.com/news/uk-14380936) where the amount of social housing went up in the beginning of her ‘reign’ to the highest ever recorded surpassing 150,000 right-to-buy, it took a small dive and in 1987 it got back to around 140,000, after she was succeeded in 1990, social housing took a steep dive to below 50,000 and from there it just went down and down. At the end of the labour reign in 2010 it was at the lowest stage ever, only now is there a small increase visible in that graph. Yet in the BBC article we also see a problem, even as it compares to 1918 where owner occupied is a mere 23%, the 2012-2013 part where 65% is owner occupied is as I call it ‘misrepresented‘ at 65%, because how much of that is empty and what part is foreign invested? You see, plenty of places in London are not offered for rent, but for lease, so who is the owner in that case and where does this fit in that graph? If we add the privately rented, we see that socially rented is a mere 16% (way higher than 1918), yet as we see the Thatcher numbers, who got the people there and how were the people kept out of affordable housing by not making that available. In Australia it might be as bad as the valid people in NSW housing are on the lists for a time in excess of 6 years. So how is that a solution to solving housing issues? And let’s not forget, when the housing is set and forced to become a larger contributor to social (read affordable) housing, what then remains of this ‘£10tn UK wealth‘ housing side? The fact that both sides of the political isle have been in denial and remiss to get any of that solved and Jeremy Corbyn claims to have a solution by pushing the UK in even deeper debt, deeper by the better part of a trillion pounds. So how does that help anyone?

Now, we might accept and understand that life in London is never affordable ever again, yet the political isles must equally accept that this change could constitute an infrastructure collapse. This gets us to some old news. In August 2014 we saw (at https://www.theguardian.com/news/datablog/2014/aug/07/london-gets-24-times-as-much-infrastructure-north-east-england) the mention ‘London gets 24 times as much spent on infrastructure per resident than north-east England‘ which is a nice title, yet the dangers are shown soon thereafter. With “more than half of that total was down to the decommissioning of the Sellafield nuclear plant in Cumbria – necessary, doubtless, but hardly an infrastructure ‘improvement’ as most people would understand it” we see only part of the danger. The quote “New analysis of public infrastructure spending by IPPR North lays bare the gap between how much capital expenditure there is in the capital than the rest of England” shows another part, yet the actual issue is not what is spent, but what is required to get something done. When we paraphrase it into “analysis of public infrastructure spending by IPPR North lays bare the gap between how much is required for the same amount of work in London compared to the rest of England” we see the dangers, when the infrastructure maintenance is 2400% of the rest of the UK, there is a danger, yet is it the correct one? In February this year, we see a partial repetition of the old Guardian article, yet with updated numbers it shows (at https://www.theguardian.com/uk-news/2017/feb/20/more-than-half-uk-investment-in-transport-is-in-london-says-study) that London requires 50% of all the funds. In all this we are not given any reliable numbers, because in all this I do not see the comparison of £ per mile of rail serviced. Consider that London has 20 times the amounts of rail that most places have and he London rail when stretched can get a person from Waterloo station to Glasgow five times over (OK, slight exaggeration). Yet the message should be clear. As the infrastructure has less options with in addition less people being anywhere near it, the city of London is facing all levels of collapse. Another part was shown on July 17th in the Independent. The title ‘More than half a million social homes in England do not meet basic health and safety standards‘ is the first indication that social housing and infrastructure are beyond collapsing. With quotes like ‘almost one in seven of all social homes in England‘ are below standards, we see a dangerous escalation. So in this we see a mention of 224,000 houses where the most dangerous safety hazards (category one) is seen. It includes “exposed wiring, overloaded electricity sockets, dangerous boilers, leaking roofs, vermin infestations or inadequate security“, yes, the right and proper place to get your partner pregnant and start a family, would you not agree?

Even as we now see that the Grenfell disaster is a first step in looking into cladding, they all seem to forget that the cladding was done to appease the houses around Grenfell, in addition, the other failures and dangers are basically the non-cladding issues, so the mess is a lot bigger. when we consider the quote “Local authorities have a legal duty to act if a category one hazard is discovered, but hundreds of thousands are going unreported or ignored” we see a much clearer situation where government and city council members could be held accountable towards the transgression of ‘reckless endangerment‘ of lives, so in all this, what is the CPS doing? Has the Crown Prosecution Services made any start on taking a look at this, because these 244,000 houses would in theory represent 300,000 people working to some degree for the London Infrastructure, being it the underground, busses or other civil offices, if even 10% falls away, what happens then? How much pressure, increased costs and non-functional infrastructure remains for London at that point? It seems that the City of London has no way of dealing with such dangerous terms. As I see it, Lord Mayor Sadiq Khan has his work cut out for him. We should all agree that he did not cause this, but he can equally agree that it is on his plate at present and his success will be weighed against his ability to lower that danger and remove the hazards within his largely leased London city.

So as we look at the wealth boom, how exactly is it benefiting the UK and specifically London? As London becomes less and less affordable, as its ‘status’ as premium investment location continues, we might soon see a London that even the tourists can no longer afford. This is not a danger at present with the dropping pound against the Euro, so London is a great place to visit for Europeans. Yet the reality is that this benefit is merely short term, the dangers as the UK turns its economy around, which they will for certain, gives dangers that the dangers I predict are merely 5 years away. When that happens the tourism part will drop, not by a small part, but by a phenomenal amount (In my speculative view well over 20%), so whoever is investing now needs to get that part back in 4 years, they might be facing deadly competition for the few remaining tourists after that. The Time in 2015 talked about the tourism bubble and set it to greed, I think that it is not merely greed; in all this the infrastructure that is dangerously close to a collapse would be a much larger contributing item in all this. So as we see that the infrastructure is in a dangerous place, we need to wonder how the UK government will be addressing this. It is not like it is not a clearly visible issue. It is merely one of several critical issues that the UK faces. Yet in this, the housing part is also the contributing factor for other sides of infrastructure as well. We saw 3 weeks ago that the NHS has 86,000 posts vacant. Not only can they not be filled, even if there was a person available, the reality is that for nurses life in London has become largely unaffordable, which hits social housing as well as infrastructure, a clear visible item known for the better part of 3 years. As a conservative I would be willing to blame my political party, yet the BBC chart clearly shows that as the conservatives came back into office the social housing curve was moving back up (to the smallest degree). Now, there is part that was done by the previous labour government, but only to an even smaller degree. In this I will end with an article that the Business insider has in 2015, in it we see the minimum income per area, when we take a look is that only the cheapest place was affordable for NHS nurses, 54 miles from the hospital, anything nearer would require double the income they presently have, some places are forever out of their reach. Even whilst I know of some places in Swiss Cottage, Southwark and West Brompton, it is shy of the 86,000 places, it will not even give aid to 1%, or 860 places to live in. So, as some people are shrugging at the £10tn wealth value, or the imaginative issue that the NHS problem will solve itself. We need to realise that a few of these issues were interconnected and have been for many years. In this Labour and Conservatives are both to blame, they achieved nothing in stopping, or decently reducing the danger. So when you look at the Monopoly board consider the 22 places and which of these streets you cannot afford a place to live in. So how was this UK wealth any help in resolving the quality of life for those not in the top 5% wealth part, which amounts 98.85% of the UK population, foreign investors excluded.

Consider that side when the next rent is due, and more important, even as all the papers are shouting about rent drops, in the end, the rental price is merely increasing slower for now. With the rent being on average set to £1,500, the 12 month increase is set between £22 and £35 a month depending on your condition, so when you consider that if these people are lucky, their pay increase ended up being up to £61 a month, we see that the increase only takes care of the rent, it will not hold water to take care of the increased price of groceries or heating, so the outlook for the British tenant will be gloomy this Christmas. And before you start blaming Brexit, it would not have mattered one bit. If anyone tells you different, as I personally see it, they would be lying to you.

The people in Britain are seeing a new Monopoly board. Where you start with £800 and passing start gets you a mere £100, in addition add 15% to every street in the first 5 turns and add another 15% for the rest of the game. The final changes are 40% more due for any station and set utilities to 15 times rolled, regardless if it is one or both owned. Now we get a slightly more realistic version of the game as we live it today, so how far would you get in that version of the game? I might want to add that we would need to add 4 pubs, one for each side and treat them like the stations, yet the amount due is 10 times the rolled dice. It seems that our childhood monopoly is the one we still think we live at times, even as we never had any ambitions to own hotels, we always expected to get one house in one street sometimes in our lives; the reality is that this is no longer an expected reality. The reality is now that whomever owns and keeps a place, leaving that to the children is the only guarantee that they have any future at all in the UK, a reality that was not due to Brexit, but due to a government having other commitments, one that was to spending too much whilst not having any backup in place, it is the reality all in the UK face until well over 2040. I still believe that the conservative path to diminish the debt is the only way out and when we consider the news about the £40 billion divorce bill, that is not too weird, because at present Mario Draghi is spending 150% of that every month and getting out now seems to be a lot safer than being around when that collapses, or is that explodes into the faces of EU citizens? Most disagree with me on that, loads of them with economic degrees and that is fine. As I see it, the people all over are in denial of previous debts made and seem to imply that it is not for them to solve, so at your banks when you borrow £2500 every month to pay for things like rent, do you think that you will not have to pay any of it back? Do you think that financial institutions are that philanthropically minded? So as City AM announced on July 17thEurozone inflation fell in June, the European Commission today confirmed, easing pressure on the European Central Bank (ECB) to start tightening monetary policy at its next announcement on Thursday”, yet a week later we see “Draghi struck a dovish tone at the meeting in Frankfurt, with no firm date given to an announcement on the future of the quantitative easing programme, but investors were not convinced”, which we got on Friday July 21st. So as the spenders are all in denial on several levels, we see that their impact could be a disaster for London when that hits, I have stated in personal belief that getting out of that mess sooner would be essential for the UK. A mere week ago we saw (at https://www.bloomberg.com/news/articles/2017-08-03/big-investors-losing-faith-in-europe-s-ecb-fuelled-junk-rally). Now we see the first mention, not of QE, but the mentioning of ‘ECB-Fuelled Junk Rally’, Bloomberg is now speaking almost the same parts that I have advocated against for many months. With the quote “Deutsche Asset Management has reduced holdings of European junk bonds in its 100 billion euro ($106 billion) multi-asset portfolios and JPMorgan Asset Management says investors should brace for a tough second half. BlackRock Inc. says risks for European credit are tilted to the downside and Nataxis SA recommends dialing back high-yield debt exposure” the large players seem to accept (read: come to the conclusion) the dangers I warned for, for many months, this is a dangers that Brexit should avoid. So, as some players are trying to delay it all, so that the UK gets part of that additional 2 trillion (as I see it).

These matters are connected, you see, when those players try to escape the sewers they will seek other parts that give rise to returns on investment that avoids their downfall, this is where the Monopoly game comes in. Because the reality is that this mentioned UK wealth of £10tn could be the escape hatch they need, yet in that the dangers to the infrastructure would only increase, I might be wrong in that view, yet it is merely my view. So feel free to disagree, providing you do not cry when I am proven correct yet again.

 

Leave a comment

Filed under Finance, Law, Media, Politics

Knocking on the door of death

There is a time in anyone’s life when death comes knocking. For some it is in an early stage for others when the end of a long road has been reached and a few of the latter go that way after a rewarding life, being it material or spiritual. So when we see ‘The Greek government says the country has turned a corner, but that is not the experience of people on the ground‘ it is merely another step to an early grave for a lot of them. The Greek Debt is being disconnected, it is being misrepresented by government and media, and overall the people are only losing more and more at a steady pace. When we see the quote: “The worst is clearly behind us.” Panaghiota Mourtidou pondered the words with a gravity unusual for the jovial volunteer. Even now, several days after the Greek prime minister, Alexis Tsipras, saw fit to use the phrase, she still feels somewhat bewildered” (at https://www.theguardian.com/world/2017/jul/30/greek-debt-crisis-people-cant-see-any-light-at-the-end-of-any-tunnel), the people seem to realise that they are being played. In the end Tsipras delivered on being as shallow and as deceitful as all the administrations before him. When we see the mention of the  French-trained hairdresser who had paid into a pension fund for almost 45 years, we see the initial fallout “At first it was a fairly good pension at €1,750 a month,” she recalled. “Then it was cut to €1,430 a month and now its €960 a month“, it is a 46% drain on quality of life, it is merely slightly more than Australian welfare, it implies that people get to live of $5 a day for their goods and groceries, which is utterly inhumane and I think that Panaghiota Mourtidou and Alexis Tsipras are insane to give any voice to ‘the worst is behind us‘, there is a realisation that this is merely the end of the beginning. With a debt of €325 billion, and according to one source an interest that is set to roughly €600 per second, we know that this is before the last bailout, so it gets to be a little less positive soon enough. We know the Greece didn’t have any options, they all know that this would happen, yet the injustice that there has been no prosecution of the previous administrations must hurt the people a lot too. So when she voices the fact “Hopes of spending their later years in Crete have been dashed“, I feel for her, because at some point, that was my dream too and for a lot it was a decently realistic dream. In all this we see “raise the sort of money it needs to refinance its debt,” said Kyriakos Pierrakakis, director of research at DiaNeosis. “It will almost certainly need a new financial credit line, a bailout light, and that will come with new conditions.”“, as the risk grows the refinancing of debt is so hollow, as more goes into interest it all falls away and nothing is left. Now, we can agree that Greece or a larger than smaller extent did it to themselves, they did it in either ignorance or in spite of, the reason does not matter; the outcome would remain the same. As they had the option to get out of the Euro and default on their loans there might have been an optional new start-up, now we see that there has been almost no actual support and the Greek population will need to live with the consequences of ending empty handed, generations washed away without the optional memory, it might be the first time in history that the financial institutions have taken their goods, their savings and their memories, the harshest of conditions.

In all this, Kathmiri shows another side (at http://www.ekathimerini.com/220517/article/ekathimerini/business/prices-remain-particularly-high-in-greece), the quote “Eurostat data show that Greek consumers pay more than all other European Union citizens for their telephony and postal services, with price levels standing almost 40 percent above the EU average rates, and even higher than the rates in Switzerland“, the question becomes: ‘who is pushing this?’ When we see options from Vaya, TataDocomo and Amaysim in places as outlandish as Australia (a large island with at some places miles of stretches between each house), the option from the Greek government to open the option to other players so that some of the quality of life is not lost is one part, the other is to invite players like Google, so that the Greeks have some level of ‘free’ internet is not out of the bounds of thinking. The mandate for the Greek politicians becomes less waiting for the credit houses to throw them scraps; it becomes an issue to offer the Greeks some additional levels of options that floats the quality of life to the smallest degree. It is a simpler process than merely hoping for the economy to get better and to hide behind the falsehood of ‘the worst is clearly behind us‘, a statement we all know (especially the Greeks) is not true.

All this whilst Victoria Hislop produces an article a day earlier on ‘Patra represents the extremes of Greece – sublime and mundane‘, it is her view and she shows some of the remarkable places in Greece, in that she gives her views, with images of Saint Andrew, a breathtaking place. She voices how Patra is elemental in all this as a given need when one sees Greece. It is all valid, you see, the darkness of the debt is an internal one, driving tourists forward towards Greece is clearly another part. I fell in love with Crete when I originally saw ‘Who pays the ferryman‘, in the end I went to the places where it was filmed, and many other places on the island. I saw the relaxed Elounda, the bar where some of the episodes were filmed, but that was merely the beginning, you see, Crete had so much more, Spinalonga was the true treasure of historic events, the Venetian fortifications as well as the impact that the other visitors had to the place. Greece is more than the debt it has, but has been equally reduced to the debt. Yet in all this, what have the greed driven corporations pushed towards Greece in an air of support? Did we see Vodafail giving a sweet deal to the Greeks and create a long term loyalty plan? Ah, no, because they still have a net debt of £29 billion, which was up by 31%, whilst the executive officer Vittorio Colao lives of £6 million, amounting to £500K per month. OK, to be clear, I am not having a go at him, he might have been well worth every penny. It is just that I have been confronted with the Vodafail PR for a little too long and when the times are hard, they ‘suddenly’ retrench. This is a valid step for any corporation mind you, yet, if these players are so much about one EU, and using their influence trying to thwart Brexit whenever they can. Is that suddenly small minded local thinking not an interesting non-EU mindset? When we consider (at http://www.politico.eu/article/digital-single-market-mid-term-report-card-tktkt-percent/) we see the fallout in the corporate sphere. The quote “Thirty years after the launch of the EU single market, 20 years after its first work on launching a telecoms single market and 10 years after then-Commissioner Viviane Reding launched the digital single market idea, the Juncker Commission has only got one of its 35 digital proposals signed off so far“, it is clear evidence of the utter uselessness of a single market, it is evidence on the need and greed of large corporations, the maximisation of profit. In all this, I have stated years ago that pushing some of the services to Greece could have had a positive impact, an actual sweet deal for some of the large players whilst they moved away from expensive western European places, yet none of that was done, because PR was all about the visibility in Dynamic London. So how EU is that? I am all in favour of growing London businesses, yet when you consider £3500 per square meter on average for a company spot, and Greece can get you a large building at 1000x in a one time off option (not an annual fee), how expensive is London (or Amsterdam for that matter). In all this, pushing several call-centres to Greece and Crete could have had an impressive impact on the Greek economy, yet the large players never considered that (or optionally intentionally steered away from that option), it was not sexy enough. So after 30 years we see “Presenting its half-time report card Wednesday, the Juncker Commission acknowledged things need to pick up speed. “The work is far from complete,” said the Commission’s Vice President for Digital Andrus Ansip. Estonia will put digital issues at the top of the agenda when it takes over the EU presidency in July; as its longest-serving prime minister, Ansip is well-placed to leverage that push“, which does not mean that any of it will get done, pushing the weight to the next person, that is the mere realisation that the EU with their so called one market, their 20 gravy trains and a cost of existence that has surpassed the Greek debt in tenfold is showing us that not only is the EU a redundant thing, the fact that Santa Mario ‘spends way too much‘ Draghi is even more evidence as his €60 billion a month is leaving Greece out of any easing options, an equation that should warrant a lot more questions, yet the Financial times (at https://www.ft.com/content/82c95514-707d-11e7-93ff-99f383b09ff9), is showing how apparently, the recovery is slow, but real. That might be to some degree correct, yet when we see “Debt sustainability in both Italy and Portugal is very sensitive to economic shocks“, which is true, especially with the massive debts Italy has, In that that their interest due has surpassed €2500 a second, Greece is not a consideration anywhere, Greece no longer counts. The one quote that we see and require to consider is “Five years later it is clear the head of the European Central Bank was true to his word, restoring financial confidence and ending a crisis of sovereign debt through a series of extraordinary measures to support the continent’s governments and banks“, the first is was he actually true to his word? Is there actual financial confidence or is there an environment of governmental abuse and pushing the risks of the games some play and dangers they bring onto the population of these nations as debts keep on rising, as governments have lost all abilities to keep a proper budget? When we see the local news in the Netherlands with ‘De Nederlandse bank‘, the additional mentioning on how the Brits are all getting into trouble because of Brexit, the Flemish where we see over valuated housing issues rising, in addition, the large banks in Belgium have invested well over €40 billion in fossil fuels, this is an issue and an important one when we consider “Naast de schade aan klimaat, mens en milieu, erkennen steeds meer experten ook het financiële risico van investeringen in fossiele energie. Zo wees BlackRock, ‘s werelds grootste vermogensbeheerder, op het gevaar van ‘stranded assets’: fossiele energiebronnen of -centrales die in de komende jaren meer zullen kosten dan ze opbrengen“, which paraphrased translates as “beside the climatological damage, an increasing amount of experts are pointing at the financial risks of these stranded assets, Blackrock being one of the voices state that fossil energy sources will cost more than they will bring in revenue wise“, so not only are we watching €40 billion in bad investment, the dangers are that there are long term considerations in costs as well. Now in the end, this might have been the least of the dangers for the Belgium government, yet in that light it means that certain matters can no longer be maintained in the overall image. This is a very disturbing issue. All this links back to the options for Greece, when we see European governments make bad and expensive decisions, in addition as the governments in question seem to be creative book keepers, yet when we look at the risks given to their populations, the long term damage is one that seems to be spiralling out of control and none of these governments are making their politicians criminally accountable for any of their actions, how is there any chance of a surplus within the next two generations? That is a reality that should have been enacted for the longest of times, so as we see the impact of Greece as (partially due to their own acts) we see large corporations move out, more and more exploiting individuals move in for the kill and we see Alexis Tsipras and Panaghiota Mourtidou state that ‘the worst is over‘, how delusional is that?

In Belgium the newspaper ‘Het Laatste Nieuws‘ (at http://www.hln.be/hln/nl/957/Binnenland/article/detail/3148452/2017/05/03/Belgische-staat-verkoopt-deel-aandelen-BNP-Paribas-Geen-onverstandige-zet.dhtml), gives us two parts. The first is “Belgische staat verkoopt deel aandelen BNP Paribas: “Geen onverstandige zet”“, The Belgium government is selling a stake (25% reduction) into the French group BNP Paribas. This international banking group employs over 180,000 employees in a little over 75 nations; they have assets close to €2 trillion and had a profit last year of €7 billion, so they are no small grocery on the corner of a village. This happened two days after “BNP Paribas Fortis zet parlementslid zonder uitleg op straat“, meaning that they ended the accounts with a member of parliament, this Member of Parliament has 60 days to push his accounts into another bank. Now the reasons are not linked as a given, yet when we see ‘what is the most upsetting is that neither the phone connections nor the office of the bank gives me any reason as to why this is done‘ (at https://www.demorgen.be/binnenland/bnp-paribas-fortis-zet-parlementslid-zonder-uitleg-op-straat-bc2612a0/). When we consider the other (translated quote “often it is about strict rules regarding ethics and battling fraud, e-Finance institutions are mandatory required to collect customer information and to report this. It depends on the type of customer and for politicians there are specific rules, they need to be updated more frequently“, now we can argue and speculate, yet the question becomes if there is a problem reporting within the bank, that tends to be not such a good thing and if this politician is not the wealthiest one, the juice might not be worth the squeeze, so in this age, as banks become more and more stringent into ‘adhering‘ to certain rules, it seems to me that this tends to be a first sign that the bank has certain stress issues it really prefers not to update too often. It is merely speculation from my side, yet when we consider that for the longest time, elected officials as customers were a positive impact on the PR of a bank, seeing the member of a Green party (usually the most innocent of political types) pushed away, I wonder what on earth is going on.

How these two relate?

That is not the actual question, but it is an important factor. The news (at https://www.febelfin.be/en/belgian-banks-are-doing-fine-first-sight-will-face-a-problem-profitability-near-future), gives rise to a KPMG report, which gives us “But the Belgian banks will have to take corrective measures to maintain this profitability while keeping solvability and liquidity at acceptable levels“, which in light of more frequent reporting might be an issue for these banks, as we see ‘higher costs due to increased regulation and tax burden‘, we need to realise that the banks are playing on ponds that are a lot more shallow than the people realise, even if the water looks clear and reflective as a mirror, it equally shows that beneath the surface there are optional hidden hurdles. I am not stating more options to get beached, more that the requirement to navigate a lot more to get into a forward placement; these two elements are not the same, but the return on investment is becoming a (much) larger effort. Now, as Belgium is economically in a better place than Greece is, it gives rise to the optional irresponsible dangers that Greece is willing to go to with the next selling of Bonds and with the dangers of added percentages on risk, the impediment of forward momentum is not an equal, but a more elevated risk for Greece (as they are all in one happy European Union), in the end the only thing it does is that it raises risk and debt for the mere depressing benefit of one mere interest payment to ignore, a mere 12 weeks of time. The KPMG report as mentioned earlier shows that so far the anticipated return on equity is falling to 6%, which is on par with the minimum requirements for 2017 at 8%, yet will fall another 2% over the next two years, meaning that the minimum required target will be off by 40% in 24 months, which is going to be a large impact on every bank who had set their targets accordingly. This leaves me to speculate that the banks will become a lot more creative by underplaying the dangers for now and as such, Greece will hit waters a lot rougher and more dangerous for the Greek people soon enough. Belgium is merely one example. Italy, the Netherlands and Germany will be facing similar issues. The last one (read: Deutsche Bank) with exists from Australian markets as it is transforming (read: or is that reinventing) itself. As players from the senior side are moving all over the world to other competitive players, we see that the Deutsche bank is moving in some direction. This is the explosive field we see and this is the market that Greece is trying to get into again in what I would call a far too dangerous time to play that desperate card. To me it seems irresponsible on several fronts, so the initial ‘the worst is over‘ could before the end of fiscal year 2017 become ‘we are hitting additional hard times, that could not have been foreseen and were outside of the scope of anything we could normally expect‘, when the Greek people see that statement come, I will happily remind you that this was not as unexpected and that I foresaw the dangers months before they played out, when that happens, the Greek population will need to ask themselves how they got played, how their quality of life was diminished by well over 50% and how it happened that none of the politicians involved ever got to face court and judges on any of that.

I do not pretend to know the markets or that I am some banker with the insight of ‘Nostradamus’. Merely a person applying common sense, 6 languages and the use of a spreadsheet, this is how I got there, with all of the degrees I do have, none of those are in economy. So when you see the ground fall away from you just wonder how the economists or the economic reporters did not see it coming as some of them move to other shores with their awesome savings, leaving the Greeks to fend for themselves, deprived of whatever they were supposed to have.

When death comes knocking, the type ‘A’ bankers, often viewed as impatient, ambitious and smitten with business aggressiveness, suddenly become the type ‘B’ individuals, all happily willing to step aside letting whomever are behind them take the plunge into purgatory first. This is how quaint the reality of life will end up being considered for all those who are watching it unfold from a distance (if they get to be lucky enough to watch it from a distance).

 

 

Leave a comment

Filed under Finance, Media, Politics