Tag Archives: Financial Times

Pimping the United States

I initially expected the USA to do stupid things, but this has got to be the most stupid of them all. As the talks are now increasing regarding the acts of dismantling the Dodd-Frank Act, we see the greedy banks walking out into the open making claims he will break the moment the ears of the listeners are out of range. Marcus Stanley from the Americans for Financial Reform stated: “We had experience with Wall Street self-regulation prior to the financial crisis, and it did not work out well,” Stanley said. “When you let industry determine its own rules, it’s going to create more risks. The downside of those risks is going to be pushed to taxpayers and working families”, (at https://www.publicintegrity.org/2017/02/01/20645/trump-wall-street-and-banking-caucus-ready-rip-apart-dodd-frank). The problem is that like the journalists in the Leveson trial, these two groups who proclaimed that they could self-regulate, have never been able to do so, greed gets in the way every single time.

If there is an upside, then it will be that the next financial event will have one enormous difference, the moment the US people see that their quality of life returns to a 2009 state, there will be 170-205 million people unanimously agreeing that the President of the United States is to be assassinated, moreover, when that angry mob runs to Washington, the army will not intervene as they will have been hit just as hard as well as their family members. So at that point the Secret Service will need to protect an idiot, whilst they have less than 1% of the ammunition required to stop that angry mob. Good luck to them I say!

qnbIn addition, the bankers who are behind the next collapse will end up being the most wanted man by the American people in history. They will flee to whatever nation they can afford, whilst channeling their wealth to places where the US treasury cannot get at it, so Riyadh might end up being the place of choice for American wealth. American bankers who did not oppose the Travel ban of 7 Muslim nations will be totally dependent on the goodness of another Muslim nation to keep their ill-gotten gains safe, the Irony is just staggering!

But is my prediction over the top? Let’s take a look!



The financial times (at https://www.ft.com/content/dd4a6698-efe7-11e6-930f-061b01e23655) gives us “Loan growth remains robust,” said Marianne Lake, his counterpart at JPMorgan Chase, while presenting record annual net income of $24.7bn last month. Beyond the headlines, there are signs that certain segments have been squeezed. In products such as credit cards and personal loans, for example, analysts say activity has been damped by fear of censure by the Consumer Financial Protection Bureau“, so as certain people see and feel the fear of prosecution through ‘fear of censure by the Consumer Financial Protection Bureau’ we see that this group of financial people have the inherent need for growth and the need for unadulterated bonuses. I will not be able to tell whether this is due to unreasonable revenue per deadline, or just the need to get to the revenue any way possible, unreasonable or not. That is what happened before and messing with Dodd-Frank makes that danger very realistic. In addition, with the US in 20 trillion debt, the next meltdown cannot be covered by the US and in addition, it is my firm believe that the IMF should not be allowed to intervene or hand any bail outs when this happens.

The second part of that is seen in: “In residential mortgages, too, banks and lobby groups complain about the new requirement to determine that the consumer has a “reasonable ability” to repay the loan, based on credit history, income, obligations, debt-to-income ratio, employment status and other information. That has caused a pile-up of paperwork“, The fact that banks are now ‘bitching‘ regarding ‘paperwork‘ to ‘reasonable assure the ability to repay the loan‘ gives rise to even more questions, especially as the need for these answers are needed on a global scale, the fact that we see complaints that seems to indicate that banks just want to hand out cash without clear setting of accountability. In that same article, when we read the part from Laurie Goodman “warranties they need to make to Fannie Mae, the government-sponsored mortgage buyer, and the high cost of servicing delinquent loans, among other factors. None of that was in Dodd-Frank“, so if that was not in Dodd-Frank, then why is it an issue?

This issue as you might expect it goes far beyond the Financial Times. There we read from Jonathan Westin the quote “Trump rolled out an executive order to cut Dodd-Frank, and to get rid of regulation that would protect against a financial crisis like the last time“, which gives the first clear indicator that I am stating could be the start for the first Presidential man hunt in American history. The fact that we see (at http://nypost.com/2017/02/12/battle-looms-as-trump-regime-looks-to-gut-dodd-frank/) “a 22,000-page document, could see the abolition of the ban on proprietary trading at Wall Street banks and on predatory lending” gives a clear indication that banks like Sleaze, Succumb & Snatch will be able to get back into business using Tele Marketing schemes to get people to sign up, they only have to be willing to grab those customers by the pony. Is that what America will amount to? I think that the world would be better of having Wall Street regulated by Mosseck Fonseca, who were only out to captivate the rich, because in both cases the IRS will lose out and they will lose out by a lot.

As far as I personally see it, there is a danger with some of this. One of them involve proprietary trading. The dangers is that with proprietary trading, desks were often considered internal hedge funds within the bank, performing in isolation away from client-flow traders. Yet, the danger comes when third party ‘assistants‘ runs between other ‘assistants‘. The first article gave us that with “It also would repeal Dodd-Frank’s Volcker Rule, which now prohibits banks with access to the Federal Deposit Insurance Fund from making certain risky investments“, where we see the part where Volcker also wanted to stop banks using privileged access to ‘cheap’ central bank financing offering PhD models to play the markets for personal gain. Now that model could change through the deployment of ‘disrupters‘ and ‘spark plugs‘ who will set their own circles getting people to stem the revolting tide or support waves of exploitation. Rings within rings, a chosen few to be the supporting role of the market players. It will unhinge the markets and the people at present would have no defence being in any market whilst they are around. It is like playing against the bank, who is the active gambler. Smaller players would have no chance at all, a market that would become less and less stable in a time where the US has absolutely no way of stemming the losses when they hit.

So like Adolf Hitler, Trump promised prosperity, but prosperity for whom? More important, at what expense? When the former German ruler did it, those people all got jobs, in the military industry. Trump has decided to open the financial industry sluices, yet that direction tends to only open the bowels for financial people which comprises less than 1% of the population there. In addition those profits do not make it to the US treasury, so what game is President Trump playing?

These changes have no ability to correct the economy and the 20 trillion debt is not taken care of, nor will it as things evolve the way they are now. In all this we face tough times and if the Trump administration succeeds in dropping the Dodd-Frank Act the dangers of the collapse of the Dollar is close to a certainty. The dollar going, just to set the need for greed to a previous stage unacceptable need, which will also topple the Euro to an untold low value. There is no way to stop it unless part of the Republican Party realises that undoing certain levels of protection will leave everyone in a dangerous place. This is not just me, there are several newspapers coming to the same conclusion, they just didn’t add the risk assessment of the assassination of President Trump yet (they’ll do that after the act). In that, is my prediction that off? There is a precedent. You see, the Scotsman in March 2009 reported ‘Abused in the streets, their homes under attack, will Edinburgh’s bankers ever be forgiven?‘, where we see “A group calling itself Bank Bosses Are Criminals claimed responsibility for the attack on Goodwin’s home and in a statement to the Edinburgh Evening News said: “This is just the beginning … We are angry that rich people, like him, are paying themselves a huge amount of money and living in luxury, while ordinary people are made unemployed, destitute and homeless” Scotland has a population of 5.2 million. When things went south, well over 55,000 ended up being homeless. That is over 1% of the Scottish population, there was never no homeless people, but that number went through the roof when the 2008 crash landed on the front doors of nearly every bank. So is my prophecy out of bounds, or does it make sense that the next event in the US, could give rise to millions becoming homeless. Where will at that rage be aimed at? I can tell you that it will be a bad day to be a police officer in the New York financial district at that point, not to mention wherever that Trump tower is at. Look at it from the bright side, with every banker executed a new job openings and new housing becomes available. In the end, the aggregated statistics will balance themselves. That event when it happens will also start the selling off of American infrastructure and State assets. The Russian or Chinese could end up buying these services, just like it was done in Greece. In that case, I’m willing to buy the Pentagon Cray Mainframe for $29.95. I’ll pay $50 if they throw in a functional Bell UH-1Y Venom or a Bell Boeing V-22 Osprey.

The things you can get when a financial system gets pimped, life has its upsides for all except the victims of such rash undertakings!


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On the bridge of slavery

We have seen several steps coming, it has been in the air for a long time, yet, this is the first time where we see a clear step where we are clearly shown that the people no longer have a voice, we are no more than a collection of items in a long reign of collateral damage to MP’s and greed driven entities. The guardian gives us “MPs to push for further measures to increase parliamentary scrutiny of the Brexit process” (at https://www.theguardian.com/politics/2017/jan/25/theresa-may-agrees-to-publish-brexit-white-paper). This is the show of a group of toddlers who do not want their gravy train to end and they will give any excuse with assistance from the media to prolong their train and maximise their earnings. We see this in “which MPs now want to see before they are asked to pass legislation to trigger article 50“, there was a referendum and the people wanted to get out. Now we see MP’s scurrying to delay and to even stop that what the people wanted.

And the evidence is actually getting stronger on an international level. My issues is that the only one taking this to visibility is Richard Desmond’s the Daily Express and if I have no trust in the publishing ramblings of Rupert Murdoch, I am very much in favour of giving none to Richard Desmond either. Yet, seeking through the article for any name that gives any solid ground for other sources and I got it in Reuters. You see, we now have an almost Mexican standoff, meaning that we can ask President Trump to get into action. The issue is that Mario Draghi gives the quote “Any country leaving euro zone must settle bill first: ECB’s Draghi“, which makes me wonder whether this court jester of idiocy is making the statement as he has been racking up trillions of Euro’s in debt by instigating through flooding the market with funds, that in actuality has had no impact on the economy whatsoever. There is no one to clip the wings of this irresponsible person, those people are all too happy to get the juicy support that their future needs. That is how I see it and lets support that with the following parts that Reuters had in the form of a piece by Francesco Canepa (at http://www.reuters.com/article/us-ecb-eurozone-idUSKBN1542KL).

When we look at the debts, we see the quote “As these payments are not generally settled, weaker economies including Italy, Spain and Greece have accumulated huge liabilities towards Target 2 while Germany stands out as the biggest creditor with net claims of 754.1 billion euros“, so as Mario Draghi keeps on going like a spending jester with a credit card that isn’t his in the first place, we would see that these nations do have debts yet local parliaments never agreed on the spending spree to this extent. So when we get the quote “In a rare admission about the strength of feeling building up against Brussels the Italian pen-pusher Mario Draghi, president of the European Central Bank (ECB), said countries leaving the euro will face huge financial consequences“, we also need to take into mind who got the debt there. So when we see the threat from Mario Draghi, we should consider my article of June 30th 2014. A little over 2.5 years ago. (at https://lawlordtobe.com/2014/06/30/exit-strategies-anyone/), here I wrote “So, the dangers of additional debts from Europe would cripple the UK as well. This is as I see it part of the reason why the UKIP got such a huge success“, now we see that not only was it true, we now see Jester Draghi use it to keep France and Italy under his yoke, he is hereby hoping that the soft UK MP’s will give in, keeping the European Barge named ‘Irresponsible Spending‘ afloat. So, not only was I right, there is an additional issue that I initially proclaimed that the American Economy would drown the European one. I still believe that this is true, yet there is in equal measure now the chance that the ECB could with their irresponsible acts collapse the American one. Because when we see that three nations are shouting stronger and stronger that they want out is also a clear signal that the ECB has been, as I feared for a long time, stacking up debts to make the exit no longer possible. So in that, there is now an added need that Mario Draghi is to be halted spending ANY money at all. If he is forcing a ‘stay in until all debts are paid‘ he is also stating that he should not be allowed to spend any money that has not gone in, basically the ECB would have to go into a trillion plus euro debt and see it as an investment, which with the view of the three largest players wanting out, that step is a bad investment. So will Mario Draghi pull out, or will he hope on non-acting MP’s in several nations who are too fearful of change? Safe money is on the second one, but that in equal measure indicates that those hit by such extremes will seek more and more extreme political sides and soon thereafter, UKIP would be seen as the liberal view which holds the balanced centre of politics. How scary is that?

And we aren’t even close to the centre of blackmail. The view two weeks ago was “Intermediate Capital Group (ICG) will suspend further investment in France if National Front leader Marine Le Pen becomes president in this year’s elections“, which is fun as the scores of Financial advisors in London are looking for new eager shores that they can exploit. Even when we see the news, we see more and more ‘relabeling’ of what is, into what speculators want it to look like. When we see the title ‘Eurozone: Towards a stabilization of growth – Natixis‘, we see something positive, yet the quote “Jesus Castillo, Research Analyst at Natixis, notes that the Eurozone composite PMI remained almost stable on January 2017 at 54.3 and from the manufacturing sector side, it seems that once again Germany has driven the Eurozone expansion“, which seems nice, but from my point of view with the quotes “it means -0.1 point compared to December. The manufacturing PMI rose to 55.1 from 54.9 whereas the services sector survey has registered a small decrease by -0.1 point to 53.1” as well as “From the manufacturing sector side, it seems that once again Germany has driven the Eurozone expansion. The manufacturing index increased by 0.9 point from 55.6 to 56.5 whereas it declined in France (from 53.5 to 53.4) in January“, which means that in the Eurozone, only one nation is getting anywhere and the other 18 aren’t pulling their weight and not getting things done. Harsh, but true. It is in this collection of false relabeling scores, where we see ICG blackmail France, scores of banks blackmail the UK (question: should I use the word ‘blackmail’ or is ‘Psychic Assault’ a better word?), because that is basically what it is and the fact that these players are not named and shamed is an issue for me.

In this 10 days ago, we had the fact that the ECB is also making its choice of ignoring other voices “The European Central Bank will hold to its course at its first meeting of 2017 Thursday, analysts said, resisting clamour to tighten monetary policy from critics pointing to increasing inflation. Since December’s meeting of the ECB’s Governing Council, when it extended mass bond-buying from March to December 2017, price increases in the 19-nation single currency area have picked up. The increase to 1.1 percent from 0.6 average inflation across the Eurozone in December still leaves the indicator well short of the ECB’s target of just below 2.0“, meaning that the ECB is playing an increasing dangerous game whilst loading this debt onto a group of nations with already maximised credit cards. The fact that only Germany got any decent result is also an indication that the ECB is setting a premise that increases the overall European debt by 2 billion a day and nothing to show for it. We can accept and we need to take into consideration that some of these events are long term actions, yet in equal measure it didn’t work the first time, so the second time making it lasts longer is equally a bad idea, which is why he earned the Jester hat.

This reflects back to the EC, because as we see more and more push against Brexit, which some parties are hoping that it will in equal measure diminish the dangers of Frexit. Even as the BBC (at http://www.bbc.com/news/uk-politics-38753808) gives us that ‘Brexit: Article 50 legislation to be published‘, we see in equal measure “But it is expected to face amendments from MPs and peers, while others have said they will oppose it outright“, giving the people a new fear, the fear that the freedom they had on the referendum was fake, a virtual war where the will of the people was never real. We can accept that the “Supreme Court on Tuesday, when judges ruled that Parliament must give permission to start the Brexit process“, which is acceptable, yet in equal measure we now face that in all this, as the EC began this path was never properly set, the lawmakers deceived and betrayed the people of the sovereign nation of the United Kingdom. Even as we know that article 50 is merely the informing part that the UK is leaving the EU, the Supreme Court stopped this from ‘just’ happening, and in that I have no issue, the Commonwealth has always been directed by law (as stated earlier). It does become an issue to me when I see “face amendments from MPs and peers“, the question becomes, what amendments? The people want out and this group of people is growing fast, all over Europe. The bickering, blackmail and phony posturing by those not even properly paying their share of taxation has been a blight in the eyes of the tax paying people. So as we look at John McFarlane and his spearfishing, or is that spearheading a fishing campaign? Anyway, the AFR is reporting on John trying to keep the banks where they are. I am still decently certain that as Frexit is becoming more and more a certainty, those not remaining in London, or those vastly relocating staff, will within 24 months see a sway where they have to explain to the shareholders a massive loss, due to relocations, loss of staff and loss of opportunity and revenue, due to a loss of staff, whilst in equal measure needing to show massive expenditure in France and Germany whilst the revenue never got close to the change. More important, the anger of people with every delay on Article 50 is also prompting other nations to truly spearhead a move out of the EC. So as we consider (at http://www.afr.com/news/world/europe/stay-put-for-brexit-deal-banks-urged-20170122-gtwblk) the quote “Bankers have moved from talking about a “transitional” period, instead labelling it an “implementation” or “stability” period, mirroring the language and rhetoric being used by the British government“, this whilst no one is asking how come that London was the financial centre for Europe before the Euro existed, before we got this open borders stuff. The British centre of commerce was well established, so in all this, why would it have been lost in the first place and for those moving consider that a one market place might see best, but we have shown again and again that it only profits the large corporations and there is too much showing that the next 10 years will not be in hands of large corporations, it will be the smaller ones that will actually start economies and set changes. Those people still see London as the centre of their universe (whether reasonable or not). In that article there is one part that remains cause for concern You see there is truth in “Jes Staley, the chief executive of Barclays, said he did not think that Britain or the EU would use Brexit as an excuse to roll back the global financial framework that has been implemented since the financial crisis“, yet we know better and what Jes is stating is not true. The truth is that, as Reuters gave us in September 2016 (at http://www.reuters.com/article/us-basel-banks-eu-idUSKCN11W1PA), that the banks are very much in favour of rolling it back to some degree. As we see “The European Union may opt out of new global rules aimed at preventing another financial crash because officials are worried they put European banks at a disadvantage at a time when they are losing market share to U.S. rivals“, even at that point, a mere 4 months after Mossack Fonseca, more and more shifts were seen. There is more than one indication that after Mossack Fonseca got out into the open, many had to vacate places and move and interestingly enough, according to Andrew Penney, Rothschild & Co, the U.S. “is effectively the biggest tax haven in the world”, this is also how we learn that private wealth is doing just fine, it merely got as new letterhead from either (or both) an accountancy firm and a law firm.

How do these elements connect? What does wealth management have to do with slavery?

These are important questions and you need to ask them! You see, the freedom of choice, to leave the EU has been undermined for some time now. I understand that it was a close call, yet the Bremainers lost, and just like American Democrats, they are very sore losers, because they aren’t getting their way. In addition, those who have no vote and also require the Bremainers to win are large corporations who require every part of an inch of margin to keep their profits as high as possible, because their bonuses depend on it. That part is no longer an option as these people need to be held tax accountable, as well as these corporations require them to pay their fair share of taxation. With the EU behind us, UK laws can finally be adapted for this to happen. We see all the flim-flam presentations, bullying and blackmail on how they walk away. Yet we can clearly see that the UK was merely the first one. And some margin from 68 million consumers is better than losing 68 million consumers, which is what the UK is steering towards. The untold part is that all these noisemakers do realise that losing the UK and its customer population is really bad, so having some profit will always be better. So when we see the Guardian (at https://www.theguardian.com/politics/2017/jan/26/brexit-bill-mps-will-get-five-days-to-debate-article-50-plans), with Labour MP’s stating “to guarantee the protection of workers’ rights and securing “full tariff- and impediment-free access” to the EU’s single market“, gets the response ‘who are they kidding?‘, workers’ rights is one and that has existed in the UK long before the EC, in addition and the crunch is ‘tariff-free access‘, which is just to appease large corporations and that has been the problem these last 8 years to begin with. So who is Labour copulating to? (Oops: I meant facilitating for). In addition UK Labour wants as an amendment “to oblige the government to keep all existing EU tax avoidance and evasion measures“, which seems nice, but that could have been avoided if proper legislation had been pushed to come down hard on tax evaders. Yet Labour in all their terms did absolutely nothing to get that decently sorted, so screaming for it now seems a little redundant in my humble opinion.

As we watch from that bridge, we see twists and turns, whilst from the distance we see how financial institutes are enabled more and more, our freedoms fall away. The Financial times being the voice of Bankers on how the ECB is making its predictions. “The European Central Bank has stepped up its warning that it will be difficult for the UK to hang on to its valuable euro-clearing business after Brexit, calling for EU institutions to seek more, not less, oversight of the trade in London once Britain leaves the bloc“, (at https://www.ft.com/content/51a68c6e-e094-11e6-9645-c9357a75844a), which sounds nice and threatening, yet, do the people realise that when Brexit becomes a fact, Frexit will be around the corner and that also means the end of the ECB soon thereafter. So as we see the issues brought by Benoît Coeuré, we see in addition “we’ll have to know what are the new foundations, and whether this is good enough to ensure financial stability in the Eurozone,” he said. “Is that possible? I don’t know . . . It sounds challenging,” he said, adding that the issue “is not for the ECB to judge alone. The [European] Commission will have a say, governments will have a say.”“, this is fair enough, when the UK steps out, another European EC nation could end up clearing Euro derivatives, that is to say, where is that infrastructure in place? The article brings however an interesting side. With “Theresa May, Britain’s prime minister, indicated that financial services could be one of a number of areas where the UK would like to retain “elements of current single market arrangements.” But that idea of special sector-by-sector deals encountered an immediate pushback from other EU leaders, who are wary of British attempts to cherry-pick advantages of EU membership“, this view is not incorrect, yet in equal measure, what cherries would the Amsterdam, German and French markets like to pick? The point I am trying to make is not the issue by itself, which is fair enough, the issue is surrounding the people behind the curtains. People like Mario Draghi, Benoît Coeuré and the other four. When push comes to shove, I feel that they for the most have their own needs in mind, the public at large should have seen by now that the ECB has been pushing their own game, the rising debt is only one of the games played. The other one is actually shown in an interview with Romano Prodi (at http://www.italy24.ilsole24ore.com/art/politics/2017-01-16/intervista-prodi-132036.php?uuid=AEIWmr), there Prodi states: “The euro area’s economy is however recovering, although, according to European Central Bank President Mario Draghi, the main risks come from the field of politics” on one side we see that the ‘recovery‘ is misplaced as shown earlier is  at less than one percent and Germany is the only one achieving it in the end, that is not recovery. What Mario Draghi calls ‘the main risks come from the field of politics‘ sounds nice, but in the end, most politicians have an economic knowledge that is a mere joke (slightly less than my non-economic education), they get their advice from economic people most of them connected to banks, and they don’t want Brexit to happen. In addition, as shown earlier, the banks are starting to push back against Basel because of the US advantages, meaning that the banks are becoming larger risks again. Does anyone remember how these bankers ended up in prison in 2008? They did not! Their quality of life only increased to the larger degree whilst the rest of us saw a diminished quality of life that even today has not restored itself. So the view from the bridge is not that great, it shows on how we lost too much and in all this Bremaining could spell even more disaster before the end of the year. That last one is not a given, but we always knew that there would be hard times. Now we only need to worry on when that crash does happen, on how the ECB will blame everyone except for themselves and their utter reckless spending of trillions. The bridge of slavery has no view, yet unlike the Hussaini Hanging Bridge you do not get to die if you are ‘lucky’, you get to live through the agony of cleaning up the mess others made and they end up being protected and not held accountable.


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As the costs come

There is an issue that we see floating at Pressnet. Actually it’s an issue that started last week. I got the news from Retail Week (at https://www.retail-week.com/companies/bhs/bhs-admin-costs-spiral-as-mps-demand-answers/7017777.article), yet it came from several directions, so there is ample visibility. Yet, what is going on? This is an important part and even as there is great benefit to anyone’s soul to blame PwC for this, yet is that fair? The question becomes, is it in the books? When we look at the previous audits, was the quote “BHS administration costs have come in at £1.3m more than expected as MPs question a £35m ‘floating charge’ paid by Arcadia” a fair question? In all this, are these floating costs in the books? I actually do not know, yet I equally question why certain parties aren’t openly asking these questions at the PwC desk. Is that not equally odd?

The two quotes that matter are “If it was such a completely standard move, as Duff & Phelps claim, one wonders why it was reversed by the co-administrators as one of their first acts upon being appointed, and why the PPF seems to take a rather different view.” and “Meanwhile, Field questioned the transference of a “floating charge”, put in place at BHS by Green’s Arcadia Group. Duff & Phelps transferred the charge to Linklaters last October“, this now gives us the parts:

  1. If we accept the bankruptcy announcements of April 2016, how come that this is done in October 2016?
  2. If we accept that a floating charge is ‘a liability to a creditor which relates to the company’s assets as a whole‘, than the part that this is a credit to the Arcadia group should be in the books, and should have been in there for some time I gather, so why are there no questions asked at the address of PwC, in addition, why are MP’s not asking certain questions from Linklaters? Now, we should accept that Linklaters cannot divulge too much (read: any) information, yet when this was all set up could be seen as mere administration and that needs to be logged, which means that either Arcadia or BHS could release that information, if they choose not to do that, the question that follows should be a lot more serious and we need to wonder what else is in play.
  3. When we look at the quote “If it was such a completely standard move, as Duff & Phelps claim, one wonders why it was reversed by the co-administrators as one of their first acts upon being appointed, and why the PPF seems to take a rather different view“. In that I look at another issue, the quote found in Professional Pensions gives us “A spokesman for FRP Advisory declined to comment, adding all that needs to be said is covered in creditor reports“, yet if it is there, should it not also be in the accountancy audit? That is an assumption from my side, and I could be wrong, yet the amount of £35m moved via Linklater in April 2016, if none of the audits has this on paper, questions should be asked, if it is there, questions should still be asked, yet it seems that questions are asked in such a late stage. In all this, City A.M. gives us: “Tension has been building between the PPF and Duff & Phelps throughout the administrative process. In November, the PPF voted against Duff & Phelps’ request to increase its fee. Malcolm Weir, head of restructuring at the PPF, said BHS pension scheme members deserved “value for money”“, which sounds fair enough, yet in all this, even if Arcadia hasn’t received the funds at present, the fact that we see “The £35m was never paid to Arcadia. It was always held in an account to our order. Our legal advisers have confirmed that the floating charge is valid. However, I understand that the liquidators and their legal advisers have made comments concerning its validity, but, I nor my legal advisers, have received any evidence to support their view.” In that regard, we now see that legal advisors are on opposite sides and both sides claim their version of validity, as legal advisors would. This is not in question at present, what is interesting is that the media at large have not included PwC in any of this, as they have been seen as the auditor of BHS. Oh, and there was a reason for me mentioning: “if none of the audits has this on paper, questions should be asked”, be aware that I have no experience on corporate taxation. However, would it not make sense that a £35m invoice would impact next year’s taxation significantly and as such, should it not be mentioned?

In this let me take you back to the previous article, where I discussed the Financial Times (at https://www.ft.com/content/4c3965f2-3c4e-11e6-9f2c-36b487ebd80a). Here we see “The Financial Reporting Council said its investigation related to PwC’s audit of BHS accounts in the year before the retailer was sold by Sir Philip Green’s Arcadia Group, in a deal that wrote off £215m of debts“, which is fair enough. In addition we see “At a committee session in May, PwC partner Steve Denison was asked by MPs to explain why the firm was prepared to sign off BHS as a “going concern” just days before its sale for £1“, which is fine too, yet where in all this is the £35m transfer to Linklater for the Arcadia group? If Duff & Phelps took control in April, would the accountant not have been aware of the thirty-five million, as such should PwC have been aware? (Read: not implied, yet questioned).

Let’s not forget that the Financial Times article was from June 27th, which means that the £35m should have been on many minds at that time, yet for the longest time there was little to no mention. I would think that if a firm is sold for the price of a mere Tesco Sliced Wholemeal Batch Loaf, would a question not be ‘What else needs to be paid for?‘ at that point the entire £35m transfer should be on the top of everyone’s mind, especially as there was a decadent pension gap issue many times that size? Perhaps it is just me, but that would be on my ‘media’ mind. Not just the actual newspapers, a few other publications (like TV and morning shows) would have had a field day with the mention that pensions will remain short, but the bosses will get squared for that thirty-five million. Emotions would be running high that day, let me guarantee you that emotions will run high on that topic!

In that regard, some MP’s are starting to ask additional questions as we see a fees increase £500,000 for Duff & Phelps’s. I wonder how many additional man years of work have been spent that warrants a £500K increase. The week gave the quote: “When they were appointed last April, initially at the behest of Green and then approved by the BHS board, the company estimated its costs would be around £3.5m“, now I imagine that an insolvency comes with all kinds of complications, but how much work, how many months of full day activities warrants £3.5M? I do not know, I am merely asking, especially as the pensions have been for the most unpaid for years now. The site this is money gives additional connections in the shape of Goldman Sachs, where among the top earners at the investment bank’s London office will be the former co-chief Mike Sherwood, who faced questioning from MPs last year over the bank’s role in the BHS scandal. He landed a $21 million pay and bonus package last year, worth £15 million at the time (at http://www.thisismoney.co.uk/money/news/article-4120336/Now-bankers-bonus-Brexit-Goldman-staff-BHS-probe-donate-pension-fund-says-MP.html).

Now a lot of this news is between 1-2 weeks old and a few items are merely days old. Yet in all this we see a massive drain to less than a dozen people, where including Arcadia a syphoning through invoicing has surpassed £50M if we include the Arcadia bound payment, yet all is not well as several sources give large payments in their report, yet the exact part of what represents BHS is not given, but implied to be a large part. As such Mike Sherwood might have ended up with 21 million dollars, yet what part is though or because of BHS is not given, in his position, with his amount of accounts, the BHS part could be less than 1%, and as there is no clarity, the Week who gives us in addition “Huge payments to bankers who worked on the BHS deal could prove particularly controversial“, only if the bulk of these payments were regarding BHS, but that is not a given, I would add, it is exceptionally unlikely. By the way, those people did not really bother reporting that when Greece got back onto the markets In April 2014. In my article ‘Are we getting played?‘ (at https://lawlordtobe.com/2014/05/18/are-we-getting-played/), where we saw the disastrous act of Greece getting back on the bonds field selling 5 billion in bonds. Yet the media at large was very very eager not to mention that the few bankers connected to this ended up with a total bonus of $50 million for what amounts to 3 days of work. So on one side they refuse to give the info, now we see incorrect (or at least incomplete info), with a reference of 21 million, the package of Mike Sherwood.

Yet there is more, the part I find hilarious is “Frank Field MP, chairman of the Work and Pensions Select Committee which quizzed the Goldman bankers on the deal, said: ‘This gives them an ideal opportunity to donate something to the pension funds, to make partial amends for the failure to give effective advice“, you see in that, he didn’t make any such reference to PwC. Pricewaterhouse Coopers, has been seen on the minds of a few as we see (in the Telegraph of all places) “select committees have also said that they have welcomed the Financial Reporting Council’s investigation into why PwC audited BHS’s accounts as a going concern when it was evident the high street chain was dependent on support from Arcadia Group, Sir Philip’s empire which includes Topshop, Dorothy Perkins, Miss Selfridge and Burton” in that the red flags of pension deficits we see a £571m pension deficit and kindly audited by PwC, so who else are they auditing in the Empire that is (or was) part of Philip Green?

Yet in all this, at present there is, just like with Tesco very little noise regarding the Financial Reporting Council and PwC, it seems like the press walks away when these two are mentioned in one sentence. After June 2016 there is abysmal little to see, which after Tesco and BHS that should be a little weird. Even when we look at the BHS elements now, overall the Auditor is left unseen in more serious ways, other than that Tesco is now hiring PwC again for other services, which after the shortfall and the DeLoitte results is a little bit weird to say the least.

You see, last year Aditya Chakrabortty in an opinion piece wrote: “Cameron warned of “the slow-motion moral collapse that has taken place in parts of our country these past few generations”. He was right. It’s just that it’s been led by those at the top – the ones at the boardroom tables, their expensive helpers – and their mates and supporters in politics using taxpayer money to wave them on” is not a wrong view, it comes three years after I made pretty much the same claim, so we can see that some players are a little late to the party. What is linked that when it comes to the matters as happened with BHS, crime literally does pay. It does for the auditor, the business men who own the place and sell it for £1 as well as the politicians who threaten with a £1,000,000,000 fine which will never happen (that pesky thing called the law gets in the way). You see, for many of us and for the victims it is a crime, yet from a legislation point of view that is not certain and it seems that no crime took place, because the people are not in jail, not in the dock and not in court. They are refurbishing their £10 million estates, whilst the working victims cannot make ends meet and where the auditor gets rehired by those they seemingly wronged for even more high priced consultancy.

As the costs are handed to the corporations in the shape of invoices, we see that crime seems to pay and it does so at a lower tax bracket than normal incomes. It can be stopped, you could be on the other side of the equation. You only have to be willing to do the one thing others did not anticipate and you have to be willing to be utterly ruthless. Basically you have to become a businessman like Sir Philip Nigel Ross Green and hire and firm like Pricewaterhouse Coopers to advice on your endeavour and audit it.


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This last day

This last day should be a day of reflection, a day of consideration. I feel none of these things as I am observing the mistakes that Marine Le Pen is now making. I get why she would get the referendum vamped up and get stronger waves towards Frexit, yet her call to leave NATO makes a lot less sense. For one, NATO still does mean the North Atlantic Treaty Organisation, France is part of that North Atlantic, she has a duty of care there (a lot less so for the EC, the EEC or the Euro for that matter). She does make a point when we look at the expansion into Eastern Europe. Let’s face it, when we look into the original line, there was Germany which goes a lot to the south, then basically it is Italy. Getting into Eastern Europe makes a lot less sense. Let’s not forget, the Americans at present no longer have the means to play this game. A fact Lockheed needs to take into consideration, even if the price of the F-35 is given without an engine ($133 million, without engine), making it basically the most expensive paperweight in history. In addition, it came with a truckload of issues in 2014, whilst the 2015 report states “the majority of the fixes and for capability deficiencies being discovered are being deferred to later blocks rather than being resolved“, with new items of concern added. I found the additional quote form the 2015 report “inherent design problems that are only becoming more obvious and difficult to fix” most amusing, so if Marine Le Pen has in mind to not go anywhere near a Lockheed design, that would make sense. Now I do not want to brag, but with all my flying hours in the Microsoft Flight Simulator (2004), I might actually beat that latest flawed Lockheed F-35 with my experience in a Mikoyan MiG-35 (OK, I am bragging a little as I have never flown ANY jet in my life). What is the issue is that the politicians have not kept a good accord on the military abilities of the armed forces, not the people mind you, but the equipment they get stuck with. As such we see a 1.5 trillion dollar project showing more holes than an IKEA Pasta insert (named ‘Stabil’, which is hilarious as it is also means stable in Swedish). A project $160 billion over budget and 7 years behind schedule, and these were the numbers in 2014. A defence project that was too big to kill and that is what the NATO partners have to content with?

So why these topics? The world is changing, it is changing faster than ever before and the minders of the store have been so selfish in regards to their own personal needs (read: visibility of self via ego) and achievements that the duty they had was pushed under the rug. This is how I personally see the F-35 project.

The financial sector in the UK alone these financial boys (girls also) had the bulk of the £44bn in bonuses this year, so did your quality of life increase any (the topic jump will make sense in a few moments)? Now, even as wealth increased, it did not do so to that extent. It is not that fair to just have a go at the financial sector, apart from the fact that they ended up with bonuses of 1900% more than the amount all the others got, so balance is not that much in play. That view is shown stronger as we look at Forbes this week (at http://www.forbes.com/sites/francescoppola/2016/12/28/greece-the-game-is-on-again/#2585dbd946e5), the quotes that matter here are “Euclid Tsakalotos, the normally mild-mannered Finance Minister, accused the IMF writers of “economizing on the truth”. He pointed out that the main reason why so few Greeks pay income taxes is that their incomes have crashed, and that nearly half of Greek pensioners are living below the poverty line” and “The IMF’s case is that pension cost as a proportion of GDP is now unsustainable, and further, that the creditors are not going to agree to debt relief while pension cost remains so high. It is probably right on both counts. But once again, what really matters is the psychological framing“, in that regard I will be on the side of the Greeks, but not on the side of Greece. You see when their previous governments got loans and misrepresented their value, they had zero consideration on what pensions were in regards to the loans that they were getting under false pretense, in that regard, did any of those politicians go to jail? Did they refund 90% of their incomes? I am certain that the answer to both is ‘No!’, in addition those elected officials are sitting pretty and nowhere near the poverty line. Yet in all this the hardship is not over, in addition, the facts (as I personally see them) requires a little more digging, especially when I read “Attica Bank, the country’s fifth-largest lender, was poised to install a new management team he thought was capable of turning round the struggling lender” which were the thoughts of Yannis Stournaras, the governor of the central bank of Greece, which was followed by “While he was in the air, the government in Athens reversed the decision to award the job to Mr Pantalakis. It was his introduction to a web of allegedly related events, ranging from a raid on his wife’s business to an unsuccessful bid for TV rights backed by Attica loans“, this gives the implied issues on Yannis Stournaras, which gives more cause concern when we see “A confidential report on Attica carried out this year by the European Central Bank, the Eurozone’s top bank supervisor, and seen by the Financial Times, cited “severe findings” of poor governance and inadequate controls on lending. With some 70 per cent of its loans rated as non-performing, Mr Stournaras and others believed Attica urgently needed a professional banker at the helm. Government sources denied any intervention in the process to select Attica’s CEO” (at https://www.ft.com/content/aab0aaba-c6db-11e6-8f29-9445cac8966f). The implications are on a few levels especially in the light of ‘government sources denied‘, there is a mess on a few levels and the idea that personal needs were adamant in decisions is not without probable cause. The levels that are in question cannot be set because too much information is missing, but there are issues, make no mistake about that.

These issues connect, not directly but in the view of national voters, governments have made absolute shambles of their nations giving power to those with key wealth management options, in that need those who need to be at the helm are politicised and set to markers that are off the table and outside of the scope of visibility to scrutinise, whilst the presentations are showing markers that do not fit the person best suited for the job, in that Greece is not the only place with such issues. In the UK Mark Carney is facing similar issues, yet in the opposite direction. The best person for the job is the one the elected government seems to have an issue with. The independent (at http://www.independent.co.uk/news/uk/politics/bank-of-england-mark-carney-theresa-may-attack-monetary-policy-tory-conference-speech-a7380016.html) gives us “Mr Carney argued that the monetary policy pursued by the Bank in recent years has had a positive impact that is “without parallel”, despite the Prime Minister using her speech to claim it had led to “bad side effects”“, in addition we see “Since quantitative easing was first introduced in the economy in 2009 … there’s been 2.6 million jobs created, GDP is up 16 per cent, per capita income is up 9 per cent and this is following a trauma in the economy“, we might see this as good news, but the good news is in the UK not dripping down to the other people just yet. In addition, the dangers will change if sharp budgets are not maintained. Getting the debt down is an absolute first, it will have additional benefits down the road, yet the initial benefit is that money could go to other destinations than paying for the interest of the debt, the interest of a debt amount that is currently in excess of 1.6 trillion. This was not the first attack, Michael Gove had a go at England’s Marky Mark in October. It is always nice when a person is called arrogant, especially when that person has proven to be amongst the very best in his field on the planet. I myself had had some issues in the past with Mark Carney, yet not against the man, but the economic issues that the UK faced because of actions (read objectives) pushed for by politicians, however his speech in the House of Lords showed him to be the expert he is and he nearly got me away from the Brexit team. Yet Mark Carney himself states it very well when he said: “Politicians have done a very good job of setting up the system. Where it can be difficult, sometimes, is if there are political comments on our policies as opposed to political comments on our objectives“, in this we see the issue that is part of the problem. as the politicians set up the objectives, they are then confronted with the policies from technocrats and those two groups do not see eye to eye, so friction goes back and forth, the Lockheed F-35 lightning is an excellent example here, in addition that part got an extra iteration as the military requirements were added by yet another group (read: the military). In all this the political objective is hampering the essential need against ‘it needs to be done by date X for no more than amount Y‘, which gives us the political joke that the NHS IT project was. A present from the Labour government which boiled down to a £11.2 billion wrapper around an empty box. Two projects set through objectives that ended up being off the wall and the back and forth friction that resulted in something unmanageable and non-functional. I reckon the political side of both events needs a new level of scrutiny, one that we have not considered before. In that regard having people like Mark Carney around is essential for the wheels of a state to remain functional, because if there is one clear thing, it is that America lost that oversight some time ago, before this Democratic Administration, the previous republican one lost sight of the needs and the accountability of the intelligence network and data processing side no later than 2006, we can all agree that the 2007-2012 total budget of $435 billion was money massively spent in all the wrong ways. This was shown in a Foreign office document that was quoted in an article stating “Army officials, though, said Palantir wasn’t up to the job. Now, a 57-page report by the Pentagon’s acquisitions arm basically says the Army was wrong to dismiss the Palantir system. The study instead gives Palantir high marks on most of the Army’s 20 key requirements for the intelligence system, including the ability to analyse large amounts of information, including critical data about terrorist networks and the locations of explosive devices, and synchronize it in a way that helps troops on the ground combat their enemies more effectively“, so there too billions were spent when millions could have sufficed. When the EGO of an individual with the power to decide is on the line, the results could be disastrous. In my personal view, if we accept the wrongful spending of 25 billion, how many extra troops could have been saved by adding fire support groups to those in IRAQ in those years? How many of the 4486 fatalities could have been prevented?

Politicians, advisors and ego are a really dangerous combination in many ways, even as we look at what is coming now, we need to be mindful of the changes that some are pushing for. Even if we are in favour of dropping the EC altogether, pushing NATO boundaries might not be the best solution. France might be privy to one of the better intelligence machines, that machine is also dependent on the intelligence it is fed from allies, an essential element that will fall away when NATO does, Marine Le Pen should be very mindful of that.

Yet this year and more important 2017 will go beyond Frexit. There is still a large debate on the Netherlands making any move away from the European Community, the numbers require people to be realistic on what will happen, yet those numbers are nowhere near the numbers Brexit had, so it is still unlikely that this will happen at present, no matter how certain Frexit will be. Italy might not have any manoeuvring space, it requires a massive infuse of funds, when we see the Reuters quote “An Italian government official told Reuters on Tuesday that €20bn earmarked for the rescue of the Italian banking system should suffice“, we need to wonder in how much trouble Italy is. This question is raised as we see Banca Monte dei Paschi di Siena will issue €15 billion of debt next year (source: RTE). So we see another iteration where “The Treasury may have to put up around €6.6 billion to salvage the lender, including €2 billion to compensate around 40,000 retail bond holders“, so, how exactly is it acceptable that people ‘invest’ with a risk, yet when that risk comes calling, they still get compensated? How did any of us ever sign up for that?

Anyone who mentions that it is for the good of all is of their rocker plain and simple. Here too we see connection between France and Italy, mainly that the Natixis Global Asset Management (NGAM) thought it was a good idea to list Banca Monte dei Paschi di Siena as a major purchase right next to Ubisoft. I reckon a little less ‘lack of nationalism’ and putting all of that cash in addition to the other amount into Ubisoft might have been a decently better idea. I feel certain that next year when we see the ‘Top Ten Holdings’ in the Natixis report will not make mention of Banca Monte dei Paschi di Siena, which could just be me though.

So in this last day we see that we have quite the collection of choices to deal with, some good and many bad ones. Yet no matter what is happening, no matter what will fall, there is a decent indication that unless changes are made 2017 will not be a good year. I might be too negative to see some level of collapse in Q2 (no later than Q3) in the next year, yet the proper setting and if the key players are willing to forego ego and focus on cooperation, they would be setting the stage for a lucrative 2018, that is beside the initial technological presentations of the new age of G5. G5 will be the pushing power in IP, especially Trade Marks, yet that path is also loaded with new growth opportunities for IT and developers as they start setting the tone of what 5G could personalise, it will be the first firm push to switch providers to SaaS. That is almost without question, the degree to it happening is very much depending on actual cooperation. In that the Telco providers need to realise as per immediate that thinking SaaS whilst selling Paas and charging IaaS, which sounds nice on bonus day. Yet the boomerang effect is that clients will walk away a lot faster and they will also automatically entice 10 personal connection to not seek the services of the telecom provider being that stupid. Infrastructure as a Service is almost a thing of the past. It seems weird, because there should be space for it, yet in our new outfits we see that infrastructure is a long term commitment and with annual mobile purchase the people have learned to be as flexible as possible, so the limited mobiles that some sell (32Gb instead of 64Gb editions) is why people are realising to walk away from those offering limitations instead of solutions. It is at times harder with Platform as a Service. You see, PaaS might sound nice when we see Apple and SAP connecting, yet the bulk of the revenue will be the smaller fish in the pond, the small players will be 80% of the revenue, one can argue the actual taxable cake of government will be largely depending on those players and for them IaaS is a laughable solution when they are trying to get as much as possible in the first few years and those smaller players want as much flexibility as possible taking to some extent PaaS from the table. SaaS will be solution of choice and those now adhering to that need will fall short in 2018 and they are unlikely to be part of anything in 2019. In that we see the government need of objectives that cater to what the SME’s need. A mere application of supply and requirement. You might think that this is not connected to the previous parts, but it is. When we see the NHS, Banks and government, their needs to address their audience, they need to consider that no matter the infrastructure or platform for communications, they all need to see that their clientele is no longer rigid, no longer bound to certain paths for the simple reason that the infrastructure of places like the NHS can no longer deal with. It is by definition a mobile customer base that needs addressing, this means, or at least implies that the SaaS solutions require a wider setup, other paths of non-repudiation and a very different approach to data, its quality, its controls and the application of the results in any report or estimation towards costings and profit. It is a path of contribution, which is set as revenue minus costing.

For the better part an entirely new path in a setting that has for too long been about a rigid collection of data, which when compared to a setting in a flexible framework no longer holds a candle and will come with the implied death of data quality. in these places there will be a growing need for a data team that has the sole purpose of managing the quality of data, this path is one that IT has never worked on to the degree it had, because in the past systems were set in concrete and after the correct data pass had been made, the data usually would not require ‘resetting’ it in another framework, a change that will be almost evident in the systems we will see start in the next 4 years. There, for some the problem becomes that they have never contemplated the changes, which now also means that once they go into the deep of it all, the time required and the resources required will be a lot more draining than ever before. It is in that path that we see the danger of politicians and technocrats in the required path of objectives and policies. As there is plenty of evidence that so far this track record is not that great, we will see a squandering of funds and a dangerous curve of unprotected data whilst no one will be actually held accountable for the transgressions against those consumers aka victims.

So on this last day there is no way that any solution will be found, just take in the information and next week wonder what on earth is about to hit you, there is some speculation in this, yet I believe that the ‘objective callers’ (read: politicians) will rely on the word ‘glitch’ a lot more than ever before, it might just become the most popular word for 2017.


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When everyone is a winner

You have heard of these special schools? The school where everyone wins, no one has a bad grade and everyone is special. Yes, we are talking about the Eurozone, the one school where lessons are not learned, where those who posture (read: all) win a prize, or perhaps they fetch a price. What matters is that this social path does not get us anywhere.

You see, I am not some anti-social person, I understand that we can be compassionate, but I do have a problem when grown men, all making 7 figure incomes are given that level benefit of doubt. Mainly because I could do a better job for half the price. We see the first issue a few days ago when Wolfgang Schäuble makes the statement (source: the Guardian) “Greece must implement economic reforms if it is to keep its place in the Eurozone“, and when we see the degrees that this man has, we might consider that he is not a demented toddler, so when we consider the knowledge that we have obtained over the last year:

1. A nation can only voluntarily leave the Eurozone.
2. Considering the UK and the hassle it is facing just to get past article 50.
3. The fact that Grexit was not a possibility, which drove the UK towards Brexit and France towards Frexit.

Can we sincerely ask the question why this man is opening his mouth posturing some level of adulthood (or adultery for those with a sarcastic look at the EU charter), whilst all know that this is basically an empty statement?

So, if the statement “If Greece wants to stay in the euro, there is no way around it – in fact completely regardless of the debt level”, the entire Brexit could have been avoided when the children of the EEC commission had acted when they should have (read: all the way back in August 2014), so because the denied ‘status quo group‘ who tried to keep the gravy train going we all had enough and most Britons decided that going it alone is just the best solution, now that we see that this same group is realising what they are about to lose, it is only now that we see the first noises to make the hardest decisions, all because they are about to lose trillions. The fact that this comes from Germany is not a surprise and it isn’t linked to the hardship the Deutsche Bank faces. Yet, the people behind Schäuble (Wall Street and the IMF, which is my personal speculation), we now see desperate steering towards alternative solutions hoping to find an option to thwart Brexit and perhaps steer Frexit away from a referendum course. It might work, but we all need to realise that French pride has already been dented, so there is no way to accurately tell how that part will pan out.

We see a diversionary tactic in the quote “With his own popularity plummeting in the face of fury over creditor-mandated cutbacks, the prime minister, Alexis Tsipras, had hoped to wrap up a second review of policy measures in time for Monday’s meeting as part of a broader strategy to secure short-term debt relief and participation of Greek bonds in the European Central Bank’s quantitative easing programme“, yet this is all true. So why do I call it a diversion? You see, the players behind the screens are about to lose thousands of billions (read: trillions), so Greece and their 300 billion really do not add too much on the entirety of the big picture. Even as the US is heralding such huge achievements in unemployment figures, most will not realise that in February, after thanksgiving, after Christmas and after January sales, the shops will downsize by a lot. There is a lot of speculation on Black Sunday and the other shopping spree numbers, but as too many speculations are given here from too many sources, we actually will not know the actual outcome until mid-January and after that any action and all numbers will get quietly hushed to page 23 of newspapers. That is done because the Democrats really do not want anything in that regard to receive too much visibility until January 20th when all eyes will be on the start of the Blame Trump campaign.

What is a given is that the American administration is facing dire moments and their only fortune is that this impacts Wall Street, the IMF and the Rothschild’s, so their all uniting in finding any solution that keeps their Status Quo. They might not be related to the band, but the tour that these players have been preparing for will include hits like ‘Whatever I want‘, ‘Roll over stay down‘ and ‘Rocking for all that I own‘. Now, what is the link between the IMF and the Rothschild banks? Well, it is not what some conspiracy theorists states like: ‘Rothschild Bankers Looting Nations through World Bank/IMF‘ or ‘Hungary Becomes First European Country to Ban Rothschild Banks‘, what is of principle matter is the claim that ‘The International Monetary Fund is an international development banker. It makes loans to governments. It gets its funding from member governments‘. Yet, when you consider the debt these members are in, with the top 5 having a total debt that surpasses 35 trillion, can anyone explain where their money is actually coming from? The short answer is that the funds are fictive and virtual, and basically as I personally see it based on fraudulent economic settings to say the least; which now implies that only the larger (read: largest) players with the Rothschild family at the very top are included as behind the screen underwriters (for a percentage of course, they are not philanthropists), that is the reality of banking and those underwriters want to see their money. So at this point losing 300 billion is nowhere near the issue as losing an amount surpassing 5 trillion. So there is every issue in play and the German Wolfgang Schäuble is doing the ‘kick off’ whilst everyone is slightly less interested in economy and more into the Christmas parties with the office assistant in a horny accommodating outfit that in the mind would include transparent Red Santa lingerie, willing to engage in activities of a ménage-a-troy kind.

Welcome to the holiday season they will think, whilst on the other side the economy is decided for the largest players in a setting of debt by those not elected but enabled. The mere consequence of governments and the corporate contracts. The debt must flow, the debt must grow and the UK moving out of the EEC is the first step into giving the UK its true independence from these financial institutions. That part is now also under attack as the ‘British Balls’ (read: Labour Party Ed Balls, former Economic Secretary to the Treasury) is at the core of that part, as was shown (at https://www.ft.com/content/2616611e-a665-11e6-8b69-02899e8bd9d1), on November 17th in the Financial Times. You see, even as I have had a few disagreements with its Governor (aka Marky Mark of the British bank), the man has steered it correctly in the direction the United Kingdom required it to go. Yet now as this does not pleases the non-governing parties at large, well Balls, let’s make a deal, shall we? If we agree to reign back the independence of the Bank of England, you must agree and sign a decree per immediate that any politician squandering treasury money due to any level of negligence (or incompetence), will have to go to prison for 10 years without the option of parole. Would you sign that Ed? Consider the NHS IT issue of 11.2 billion, how many of your friends will be set to prison? How many negligent programming contracts were signed off on? Are you willing to make that leap, because the only ‘friends’ you end up having are those of the non-UK kind and many of them mere graduates that were on your every word in that Harvard building where you made that speech and a few more in financial institutions who didn’t much care for the independence of the Bank of England. So how about it Eddy, you got the Balls for that one? I would expect some kind of other proclamation soon enough. You see what he wants is not any accountability in a setting where all is squandered away. The British people have had more than its share of that one. So as we read: “The paper comes after vehement attacks on central banks and their policies in the US, UK and Germany; criticism that would have been unthinkable in the 1990s and pre-crisis 2000s, when the fashion for central bank independence was at its peak“, where I would see that the idiotic notion of the Bank of England should be forced to fund infrastructure projects, whilst we know where 11.2 billion didn’t get the job done and there wasn’t enough money to get it sorted due to negligence and what I would regard after 20 years in IT as ‘steps of utter stupidity’, well worth of getting those decision makers in prison for the longest of time (read: while I am aware that the maximum prison term would be 10 years), a term that others would call too light, especially those who are now due to no fault of either party are getting less from the NHS that can no longer meet the high standards it gave for the longest of times.

So when we read in that same paper “Carney says politicians ‘deflect blame’ by attacking central banks’ Rising inequality is driven by more fundamental factors, argues BoE governor“, my response would be: “Right you are Marky Mark!“, although I would speculate that some of these fundamental factors would be the ignorance of the decision makers whilst relying on people trying to get the maximum they can out of the deal offered and the connections relying on them. That would a fundamental first to consider and solve. Which gets me to the point that those politicians will be held accountable for the support to these projects and they need to be dealt with if they fail. So the special prize for these non-kids is the one that every winner wants, 120 months of hotel accommodation in places like Holiday resort Wakefield, or Wandsworth Garden retreat in South West London? Would that perhaps up the game of a few politicians, or will they suddenly decide to be less enabling to those who see the independence of the Bank of England to be more than an eye sore and a factor that stops their maximum profit to continue? I am merely asking, not making a claim of any kind.

The Financial Times article has a few other sides and makes fair statements, even though the initial source is questionable from my point of view. The writer Chris Giles adds at the end “For the Fed, the problem is reversed and while it has in its Financial Stability Oversight Council sufficient political legitimacy for macro prudential policies, the US central bank does not have sufficient tools to do the job and cannot request new tools from the administration, it adds“, you see, the British and US systems might seem the same, but they are not. I would surmise that there is a Federal and State level of these issues that the UK does not have to the extent the US has them. It is not just the differences in approach and connections, I and most of us see the Bank of England as the pulse of the health of the British economy and as such, its independence, especially from a boatload of politicians, is essential to this view. Now, I might certainly be wrong, yet overall, how many would agree that many politicians seem to spend in what they truly believe to be for the best, whilst not having a clue on how proper debt levels need to be and they will happily push that bill to the next cycle, the NHS IT is not the only, but definitely one of the clearest and largest examples of mismanaged spending on several levels, having someone independent in charge of the Bank of England making sure that the tap gets closed before it is too late in this term with a clear look at what comes next and what else is due now. A view many politicians on a global scale are lacking. And as the US system has a much more isolated view regarding the economy enablers, the economy and the US treasury gives another shine on their view and their lacking demand for independence and accountability (again, as I personally see this).

You see, there is a lot more in play, this isn’t just on what is due to Greece, the UK or the Banks wanting there coin. The fact that left and right have to some degree social values and of course, the left tends to have a little more of that. Yet, when we look at ‘Greece under fire over Christmas bonus for low-income pensioners‘ (at https://www.theguardian.com/world/2016/dec/09/greece-under-fire-over-christmas-bonus-for-low-income-pensioners), we need to question certain responses. The quote “A goodwill gesture to ease the plight of those hardest hit in Greece by tax increases and budget cuts has backfired spectacularly on the prime minister, Alexis Tsipras” is one that is of great concern. Consider that this is about retirees that get less than €800, so, when we consider that rent in Greece is €450 or more, with added monthly utilities of no less than €140, this means than they get to live of €310, which is abysmally little. A week of food and clothes and other things at €75 per week is the nightmare scenario for even the best miser in town. Now consider Christmas is around the corner and these Greeks and those getting even less are getting a one-time bonus for Christmas. It is a social smallest act by the Greek government and after the issues that the retirees have gone through clearly the act that should be done as soon as possible. So I would really like to know the names of these ‘International creditors pour scorn on prime minister Alexis Tsipras‘, in addition, I would like to see what their functions were and their incomes from 2004 onwards. You see, I want those people and I want to see if they were in any way enabling the imbalance that Greece developed between 2004 and 2009. Mainly because the Greeks suffering now would really like to get those names and addresses. For those following a little longer, I have had plenty of criticism towards what I used to label ‘rock band Tsipras & Varoufakis’, in addition I have had additional issues with what was done over the time period, yet I had never had issues with any solution that could be found resolving the issue, in addition, when Greek was playing hard to get, I was first in line to throw them out of the EEC and the Euro, yet the power players behind all this, and possibly the people holding onto the debt markers were equally accountable. Yet, I have never had anything negative to state over the Greek people at large (apart from the stupidity of all these strikes), so I would have no issue with Tsipras giving a little release in the one month when that makes perfect sense and likely matters the most. Yet in this social climate, we see in equal measure the debatable view by Labour people wanting central banks to be more dependent on the politicians who cause a lot of these issues to begin with. How freakin’ crazy do you need to get here?

So when we consider that special school where everyone is a winner, can we actually accept or even entertain the thought of hiring someone who is on that school of thought? How much damage must Europe endure before the people at large gets a clue? There is accountability, which I have always supported, yet in equal measure, the strain on the Greek people have been unjust been brought by those who have been facilitators of a system that should never allowed to continue to this degree, meaning that Greece should have been removed from the Euro at least 2 years ago. Doing it now, could only be done if the debt of 300 billion would be forgiven, a step that the players are unwilling to give, yet in the light of all that is passing, they are now considering certain steps, only so that they can hang onto an optional 35 trillion, that is the game in play and now, as they realise that the UK has had enough and that France is on the same side of that seesaw, now those creditors are considering the consequence of pressure so now they will divide the EEC and conquer whatever funds they can, for as much as possible. In that light the one off payment is scorned on, so how inhumane have some players become and should we even consider tailoring to their needs?

The scenario where everyone is a winner is a long time away and it is unlikely that Greece and a few others feel this way any day soon, giving even more caution to the words of a president who is on the way out. And who are Greeks creditors? What is the full list, is it not interesting how the press has the detailed specifics on the knickers (read panties) of a Kardashian and the Greek government creditors list gets trimmed to the aggregated list that serves themselves and no one else. In that I believe that Yanis Varoufakis is only scratching the surface when he states “the UK referendum was a “symptom” of a series of mismanagements from EU leaders“, in that he is right and it seems that now he is less of the rock star he presented himself to be, now we see another Yanis, one that is not just driving the nails on the head, he is quickly realising that certain players are preparing for even more issues to be added to the exit of nations from the EU. Even as some is by part to smear the cogs of Germany’s needs, the quote “To take a trip down the Danube to discuss the formation of a European army – pure irrelevance. There is no evidence unfortunately that the political class on the Continent is capable of even sitting down to address the right questions, let alone, deliver the right answers“, which is at the core of failure of any created European army. The biggest issue is not how it is formed, we will see soon enough that once Frexit is a reality, what would actually be left to actually form any decent European army with? It could be a revolutionary new Disney. As we redesign Snow White and the Seven Dwarves into Germany & the 7 minions who cannot agree on anything, will we now see new polarisation in several ways being added to the list of negative plights? In addition, if Italy remains as the larger player, the mere concept of language will be the hilarity of many. I would be willing to wager that the concept as it is failing will derive laughter from 2400 Route de Pexiora, 11452 Castelnaudary Cedex, so loud that it can be heard in both Berlin and Rome, which should make for an interesting news cycle to say the least.

I have spoken against the ideas of several people mentioned in this article, I thought that they went the wrong way about things and they got bit, which I would call ‘serves them right‘, yet I have never applauded or agreed to the level of pressure the Greek people are currently under, in addition, the German finance ministers views, as I personally see them, are not about Europe and not about what would be best for Europe or the United Kingdom. I believe some are starting cycles of facilitation and enabling that will in the end be really bad for Europe, for the United Kingdom, for France and for Europe as a whole. I will let you contemplate how wrong I could be and if that is not the case why the clear outspoken opposition against these proclaimers aren’t coming from more sides, more people and more media. Is that not weird either?

A game where everyone is a winner only knows losers, a truth that goes back to ancient Greece, they were the founding fathers of the Olympics after all!


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Non iudicium tuum

This telling is a little overdue. You see, when you are looking at one aspect, when the aspect is blended into the frame, it tends to be a larger puzzle to decipher where the colours have ended up. You see, when you start the painting, you work with blue, yellow and perhaps a little red. So before you know it, you have in addition purple, Green, Orange and at times brown appears. Yet, how much of yellow is in each of the blends? Do not think it is a black and white path, it is tainted in contrast and the one trying to decipher it all is in the largest of dangers by letting his or her ego speak in the extent that the amount of yellow that made green is used. It isn’t always science, it is at times art. This is the path of intelligence analyses and whomever is pointing its finger at a mere correlation table of SIGINT (or Business Intelligence) will for the most never have a clue what got themselves into that number and they end up painting themselves into a corner, the deadliest of actions in any given analytical equation.

So when I initially got to the fact that the foundation of the Huawei revenue was down 4.25%, I was looking at the base of it. You see, like the blending of colours, Huawei is also getting blended. Samsung would be the strongest indicator why their profits are up by a fair share. In addition as Apple disappointed to the smallest equation is an equal measure of the impact, yet Google is about to hit the revenue ball out of the park with the Pixel and Pixel XL, where it now seems that filling the initial US and UK orders is no longer feasible, the demand for this communication jewel is crushing all expectations raising the bar by a sizeable amount, something we have not seen since the early days of the Apple iPhone.

You see, in July the Financial Times reported on operating margins shrinking, even though revenue surged 40% (for Huawei), the quotes aren’t too ‘informative’, you see the answer isn’t always easy when a brand is global. Yet this quote will help “But while revenue surged, picking up from 30 per cent growth in the same period last year, Huawei’s operating margin shrank from 18 per cent to 12 per cent, the privately owned company said on Monday“, yes the revenue went up by a lot, mainly because over the previous year Huawei was very aggressive offering the P7 at such discounts that in its league it was almost the only choice to make. Other models were sold at very sharp prices, giving shoppers clear reasons to select something that seemed too good to be true. The rest at the Financial Times is pretty spot on, but incomplete. (at https://www.ft.com/content/12a427e2-5232-11e6-befd-2fc0c26b3c60).

It is the next quote I have an issue with “Sabrina Meng, Huawei’s chief financial officer, predicted the strong sales would continue through the year: “We are confident that Huawei will maintain its current momentum, and round out the full year in a positive financial position backed by sound ongoing operations”“, as stated before, people are getting more and more clued in on what is required in a smartphone, as they went the way of Samsung and others in limiting what was available the market is slowing down for them, it will slow down faster and faster as they ignored to comprehend their mobile customers. The lesson Apple knew and Google comprehends at presale is the reason that the Huawei and other markets will slow down even further. Don’t get me wrong, they will still make a profit, but their mobile share will take a hit (when we exclude the Samsung shift). By listening to the wrong analysts and not realising that their production path could have been optimised by not giving in to fragments, the margin was kept low. This is a choice you can make, and it comes with consequences.

Huawei is following Microsoft, Motorola, Sony and a few others in this. And as we see the news in the corner on how others are following the P9 dual lens, they are all ignoring the main element in all this, it is storage plain and simple! That is, for the consumer users, in addition, when we see Ericsson dive deep down into a 94% drop, we need to consider the quote that IT News gave (at http://www.itnews.com.au/news/ericsson-profits-plunge-94-percent-439317) “Acting CEO Jan Frykhammar was confident Ericsson could fight back, noting it had faced a similar situation in 2007-2009 when it was waiting for demand for 4G technology to kick in“, you see, ‘waiting’ is the issue, you either take the lead and jump or let the revenue slide by, that was the consequence. They gave up the mobile smartphone a long time ago, as there was no way to compete with the market. In addition, Ericsson has been dropping the ball on a few telecom fronts.

I think it is relatively safe to state that there is a lull in the Telecommunication market (in general). The final quote “Our result is significantly lower than (what) we expected, with a particularly weak end of the quarter, and deviates from what we previously have communicated regarding market development,” said acting Ericsson CEO Jan Frykhammar” this sounds like an answer, yet it is not.

Is he showing that he had no way to forecast what the market was doing?
Is there no correct focus on ‘market development’?

The Ericsson case is showing us that there is more than one issue. In the same state we have to see that Huawei is a lot more than just mobile phones, as it is with Ericsson, yet as I personally believe it to be, some places aren’t thinking through, at l;east not to the extent that they should be thinking it through. They are trying to get back to the ’98 time when they were getting rich by selling concepts. I see it as backward thinking. Ericsson states on their website “Opportunities in 5G! We asked 650 executives from 8 industries how they use communications technology today, which use cases are likely to dominate their industry, and what business reasons are driving them to move to 5G“, which is not untrue, but as we see the PR machine waking up 4 years early on the biggest opportunities that are eligibly coming, whilst there are still 4 general meetings and as I see it no less than 8 shareholders meetings, so focussing on the now is extremely essential (don’t you agree?), this is why Ericsson got to drop 94%, the ‘now’ is not covered and we only have yesterday’s technology to compare it to. If you wonder about 5G, look here:


what-is-5g-euroWhat is important is “Huawei is planning to launch the first 5G pilot network with its partners in 2018. Interoperability testing is to be completed in 2019 ahead of a commercial launch in 2020. Ericsson is planning to demonstrate 5G at the Winter Olympics in South Korea (as is Samsung) and at the World Cup in Russia, both in 2018“, this sounds nice, and it actually is, but consider that the devices that need to be there are not created yet, so they are dealing with old tech that is soon no longer interesting, whilst todays needs that shows clear forward momentum thinking is not shown by either and relying on 32GB mobile devices is definitely not it. So the consumer at present is looking at buying at least 2 more mobiles in the next 5 years, so having one now that last 3 years is a massive requirement as I see it. In addition, lowering the upcoming threshold is an initial requirement. The image on that page, shown here, is the first step. The image shows two elements. In the first we see ‘smart mobility‘ and ‘smart wearables‘ in the second we see ‘domotics‘ and ‘Entertainment, apps beyond imagination‘. This gets us now back to ‘Viewpoint to a point of view‘ (at https://lawlordtobe.wordpress.com/2016/10/05/viewpoint-to-a-point-of-view). Google wasn’t just ‘on the ball‘ they are now leading the game and are the new game deciders in the field where everyone wants to play. In that presentation on Google Home they showed to be active in all four elements, and they are now leading in at least two of them. That is the part Huawei ignored. And as so called 2018 G5 partners they had the option to lead the field, they just decided not to do so. By using the initial Apple approach, the Pixel and Pixel XL offer the 128 GB solution for $150 more. Meaning that your phone could last you until 2020 and only when the 5G requirement is actually needed, the current Google solution will give you some of what 5G is supposed to offer, so you will only be upgrading the centre of the hub of your domotics, namely your mobile phone. The rest will most likely already be there, so that is why we see the shift.

So is my view tainted?
It is!

I look at a lot more elements than the consumer will, yet in all this, the consumer is already getting exposure to these elements and as such we see a level of contrasting within the consumers choice that we haven’t seen before, that elements needs to be taken into account as well. Whasun Jho who has published works regarding building Telecom markets. As he sees it and I agree we see a contrasting in the Telecom markets where we see the growth of facility based competition versus service based competition, I believe that the second is only a field of combat if your hardware isn’t up to specs to deal with the wave that will follow over the next 5 years, so in that Huawei, as I stated in the past had the option to grow the market to rule as they went with sharp competition in 2015, they now gave it away by seeking margins instead of overpowered ruling through superior options. In my view as we see where limitations were the only options, it was about competition between providers of the same or similar services (in Australia Telstra versus Optus) and by giving in, they are now losing market share that I stated is a base drop of 4.25% and could rise to 11% before Christmas, almost literally depending on the power of Google’s devices as accepted by the global consumers. In this situation, it is not a given that Google would switch to a Software As A Service path, but by offering the path on corporate whilst leaving the consumers with open and negligible costs, the image as shown implies that ‘smart’ elements and ‘domotics’ will give us Google at number one, with a massive advantage for the longest of times, that is, unless the players change their ways and right fast. Because when proven to work, customer loyalty will soon be the most important metric in this telecom shift. Samsung gambled and got hit hard, yet they are not out. One burning battery does not stop a company the size of Samsung and a lot of burning batteries makes for a fun roasting of Marshmellows (pun intended).

So here we see the use of colours. Which colour is what is not a given and does not matter, what matters is what the consumers and what the corporations need, in the next 3-4 years it will all be about what will last longer, not some hardware as a service that requires annual replacement. Ericsson shows us what happens when you are not proactive on the ball and there will be the licking of wounds for some time there, in addition, as we see the mobile iteration (Experia Z to Z5), actions that I call to be an iterative market that has no chance to survive. sweetening deals like a couple of movies has no place here as I see it, it seems like a quick fix and it is, yet in that Sony has made that mistake a few times too often and Huawei should have learned from those failures. They were all options that could have been avoided and it will hurt Huawei, yet in all this they too are not down or out. Just a little bruised as I see it. So we will see a market that will shift over the next 4-6 weeks. Yet in the end there is no certainty on how matters are impacted. What is clear is that the Telecom market will shift in a massive way, those who do not shift with that market are most likely the players that will not make it to 2019, an extreme prediction, yet will I be wrong?

Consider what the market is trying to imbue to us between 2017 and 2021/2022. As per 2018 you should only consider a device that will last that initial transition (software without the 5G speed), and the one after that will have the speed if you want to play on that level. So buying with clear common sense could save you $1000-$1800, that is for most people serious money, for those relying on a new plan with a new phone, you better remember that soon such a solution might not be that easy to get, or that cheap. The Telecom providers will remain facility based competition, yet the market we swim in is more and more becoming service based, so we need the right device that can deal with this and for telecom companies to keep on playing a ‘this will do for a year‘ isn’t thinking forward, or at least just limited short term. A game we cannot go along with and there are enough people to realise this danger, which is what is pressuring the Huawei market as I personally saw it.

There is more to all this, but a market that revolves on ‘We decide your choice‘ is not a choice, it is a limitation, something that Google is building awareness on by showing us what is possible and then offering the overkill device for a mere $150 extra, like Apple did, but Apple didn’t come with the shown benefits of actually showing us that part. As you realise that you already knew most of these elements as you YouTubed your way through the internet universe, consider the options your phone don’t allow for at present. There is no reason to suddenly update the phone at present, but you should realise that these limitations will hinder you in the future and realising what you need in three years is more and more important in today’s mobile market. It is something you only need to be aware of at present, when the shift comes you will be ready with the right phone and with the options to do it all (without getting pushed into spending $1000+ overnight), as well as the option to keep your movies, your photos, your Pokémon’s, as well as whatever the domotics apps universe brings to your mobile.


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What is Hiding Underwater

What is the reality of surface life? That is the first question that comes to mind when I look at the fallout that Brexit is creating. You see, to comprehend this part I need to take you back to the 15th April 1912, in that year New Mexico and Arizona become part of the Union that is now regarded as the United States of America and the first Balkan War has not yet started, no at this time the titanic sinks. The world gets introduced to the dangers of an Iceberg, the danger s that 90% of an iceberg remains below the surface. A lesson that will reverberate in many ways. This one event changes the rules of safety regulations for ships at sea forever (for the better I might add). The part that has been dramatized again and again is about a ship going down. It would not be until 1997 until someone truly turned this event into a money maker (James Cameron), it would fetch a little over 2 billion dollars, not a bad result for a movie. The reality is, that for most, the unknown fact was that the Titanic was the direct cause of something else. It would be the reason for something that was created in 1914, it was the International Convention for the Safety of Life at Sea (SOLAS). Let me add a little spice here. If the Titanic had not met up with that proverbial ice cube, there is a decent chance that the amount of fatalities from WW1 and WW2 would have been a lot higher.

You see, what lies beneath the surface is an issue, especially when we do not know what is there. We can only arm ourselves with the lessons we are taught and the common sense implementation that our logic allows for. So when I saw two articles today, my mind went into wander mode. The simplest of reasons is that certain events do not make sense. I feel that we are being played. This is a feeling I have and I could be massively wrong at this point. I accept that, but let me tell you about these articles and these facts and it will be up to you to decide.

  1. Construction becomes first casualty of Brexit as housebuilders get jitters‘ (at https://www.theguardian.com/business/2016/jul/04/construction-first-casualty-brexit-housebuilders-jitters-eu-referendum).

So there has been a referendum and a vote has been cast. We now read “their stockpiles will reach to the moon and back. That’s the message from private sector house builders, which have looked into the industry’s crystal ball and concluded that there is no reason to expand supply for the next six months“, in addition we get “As the former head of the civil service Lord Turnbull said last week, the industry is extremely sensitive to economic sentiment and will not build a single house more than it believes can be sold” as well as “the industry is unable to build the homes that the nation needs, where it needs them and at a reasonable price“. You see, when we see messages on house shortages, on the fact that houses are absolutely unaffordable, is it not weird that one referendum, a referendum that will take time to sort out suddenly has this effect? As I see it, the prices have been pushed up and up in a bubble and the people have been victims. This is partially sown/proven when we consider “Tony Pidgley, the chairman of Berkeley Group, who pocketed a 42% rise in his take home pay to £23m last year, could not close the supply gap even if he wanted to“, as well as “He needs to make a profit for his hungry shareholders, who have set him a target of generating £2bn in pretax profit over three years from 2015“. So we now see that we have been the play toy of ‘hungry’ (read: greedy) shareholders. Exploitation of an unacceptable level and I wonder why the people at large accept this. Pardon my ‘off grammar’ English when I state “Can we get rid of these bloody shareholders, preferably with extreme prejudice?

You see, when we reread the article in another light we get:

  1. Pity the poor brick makers; Why? Bricks are needed, they have a certain cost and they are always needed.
  2. There is no reason to expand supply for the next six months; why? There is still a housing shortage.
  3. Will not build a single house more than it believes can be sold. Wrong? This is perception of when it will be sold. There is no need to not build, mainly because there is a housing shortage. People need houses.
  4. The industry is unable to build the homes that the nation needs, where it needs them and at a reasonable price. This is now proven to be untrue. This industry has become a vulture driving up prices artificially by reselling a house at times more than once, even before the house is build.

It seems to me that the law can be adjusted, so that a house cannot be sold until 2 years after the house/building has been completed. That takes out the speculative vultures and it would drop house prices to a level where a population at least 15% larger than initial would be able to afford a house. So when I read about Tony Pidgley and his shareholders, I would suggest that if Mr Pidgley desperately needs that 2 billion in profit, he should consider explaining to these shareholders how to make £20 per half hour selling services in areas like Soho? It sounds a bit over the top, but when we see profits that run into billions, we have truly overstated levels of acceptability. Perhaps moving away from the EU forcing another path where 64 million Brits could regain a life that is affordable is truly the best thing to do. Let’s not forget that an affordable mortgage, means that families will spend on quality of life, this implies that commerce will grow and no stimulus (in the way Mario Draghi is applying it) would be required.

The second article is actually a very different channel. The article ‘Standard Life shuts property fund amid rush of Brexit withdrawals‘ (at https://www.theguardian.com/business/2016/jul/04/standard-life-shuts-property-fund-post-brexit-withdrawals). The quote here is “The £2.9bn fund, which invests in commercial properties including shopping centres, warehouses and offices, is thought to be the first UK property fund to suspend trading since the 2007-2009 financial crisis, when some of the biggest names in investment management stopped withdrawals because they did not have the money to repay investors” and it makes me wonder what game is on here. The article links to ‘New Star halts property fund withdrawals‘ (at https://www.theguardian.com/money/2008/nov/26/new-star-suspends-investor-withdrawals), which was the 2008 meltdown. So now, when we see Standard Life’s property funds referring to “Investors in Standard Life’s property funds have been told that they cannot withdraw their money, after the firm acted to stop a rush of withdrawals following the UK’s decision to leave the EU“, I wonder how many investors, where they are from and the reasoning is behind the withdrawal.

You see, there are two options. The first one, the straight path is the one where we see the links to ‘shopping centres, warehouses and offices‘, these places are still needed, commerce will go on, even if the downturn is stronger, people need food, people need their goods. This will not change. The part that will change is the one we just dealt with. Unacceptable ‘profit margins’, which implies at present that these ‘investors’ are little more than vultures, do we need more of those?

It is the next quote that implies that there is a secondary path: “The selling process for real estate can be lengthy as the fund manager needs to offer assets for sale, find prospective buyers, secure the best price and complete the legal transaction. Unless this selling process is controlled, there is a risk that the fund manager will not achieve the best deal for investors in the fund, including those who intend to remain invested over the medium to long term”, here I wonder if the fund manager has been ‘juicing’ expectations, which could only continue in a ‘Bremain’ world. The fact that the news cycles go wider as the mere intent that the reality of Brexit made the Dow buckle is equally weird (initially).

When we consider the words from Mark Carney, who stated “U.K. banks can be part of the solution, not part of the problem“, in that mindset I can offer a first option. If we get rid of Tony Pidgley and his shareholders, the UK gets to not see these 2 Billion go elsewhere. Now, let’s be fair, the UK would never make that much on it, so if the coffers can accept a mere £200 million as a profit margin, an amount that is most likely more than taxation of the 2 billion, the UK coffers still win and life becomes a little more affordable in the UK for all who buy a house.

I will be the first one to admit that my view is not realistic and too optimistic, yet am I wrong? The housing bubble is only one event that needs to be fought. Taxation loopholes have to be dealt with, dealing with the s a decade overdue and it is one of several reasons that the UK economy is in such a bad slump. Now we get additional news that the EU is in an even worse state than we have been kept informed about. The Australian gives us “Italy’s banking system is in trouble, with about $540 billion of non-performing loans and a desperate need for new capital. Given the dearth of willing alternative capital-providers, Italian Prime Minister Matteo Renzi wants to inject the equivalent of about $60bn of public funding into the system to try to stabilise it. The problem for Renzi and Italy — and the EU — is that the rules of the European Banking Union forbid taxpayer bailouts as the first resort for troubled banks” (at http://www.theaustralian.com.au/business/opinion/stephen-bartholomeusz/italys-banking-crisis-a-bigger-problem-than-brexit/news-story/d4e0c5007fb133db959cc569f9678804), the Italian issue has been known and I have reported on it in the past, yet the fact that banks are still the biggest issue in the EU and they still have not been muzzled to the extent that they need to be remains an issue. An issue that shows on another level that Brexit was not the worst idea. So when we see Reuters stating ‘Draghi could have done more to help Italian banks in 90’s, says PM Renzi‘ whilst this issue has been known for well over a year and for the fact that Italy’s antiquated bankruptcy laws have never been properly dealt with, especially in light of the 2004 and 2008 events makes me wonder where Matteo Renzi got the idea to blame other places, when his office should have made clear priority in these matters and he should have made equal mention that people like Enrico Letta, Mario Monti and Silvio Berlusconi who had been Prime Minister in batches going back to 1994 forgot to deal with that situation, and now we see that the EU is in a state much less healthy than most predicted. I knew about several issues, but not all, it seems that all news on the stat of the EU have been overstated by way too many players in this game and it makes me wonder in equal measure how it was possible for Mario Draghi to spend over a trillion that he is still ready to spend even more.

So in light of all this, how could the UK return to a place that is killing itself, that is allowing for inaction that is not prosecuted in any way. So when you watch Rose Dawson push Leonardo DiCaprio to his icy grave, consider that the EU debt is like that Iceberg, it can sink anything and 90% is kept below the surface, sustaining the tropical life of less than 1,000 banking executives. The people in the UK need their own Safety of Life against Greed (SOLAG). If these players were decently less greedy, none of this would have happened. Perhaps one day we will see a modern European Aleksandr Solzhenitsyn and we will accept his book ‘The SOLAG archipelago’ and the wave it brings as a given wisdom.

Time will tell!


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