Tag Archives: Frexit

Smite the analysts

It is time to change the game. It is time to do a lot more than merely claiming to do something about fake news. I never claimed to bring the news, I have merely been in the process of nitpicking it as much as possible and the Guardian got my feathers plenty ruffled this morning, so it is time for me to be a little speculative of the matter.

We love our idiot products at time; it is something to laugh at or something to make a joke about; for the most harmless fun. Yet today something snapped. It might have been the abuse that Theresa May has been receiving, it might have been watching some poor sod holding a ‘We’re poorer without EU‘ sign, whilst like me that person is unlikely to have any economic degrees.

So when I see: ‘Theresa May’s Brexit deal could cost UK £100bn over a decade‘ by Richard Partington (at https://www.theguardian.com/politics/2018/nov/26/theresa-mays-brexit-deal-could-cost-uk-100bn-over-a-decade).

I hereby make my first demand (do not worry, no one will listen anyway).

In regards to: ‘People’s Vote-commissioned study says loss is equivalent to annual output of Wales‘, I DEMAND a full disclosure of the names of the people involved as well as a clear documentation of all sources used. this includes the names of those in the ‘People’s vote’ those who commissioned the study, the price paid for the study, as well as the names of those who made that report (not just the three who wrote it), the data sources used as well as how the report was set to the data and its results. I expect to find a dozen flaws in the very least. In this case any arbitrary choice (which at times is perfectly valid), should be seen as a flaw, unless clearly stated as such.

It is time to hold these people up to the limelight exposing what the Guardian (and many other newspapers) are giving voice to as being ‘the facts’. I would like to go as far as prosecuting (to some extent) the makers of these loaded and dubious reports by banning those names from any governmental research for life! When that happens, we will get all kinds of excuses and well phrased words or denial. Yet, I feel that we have come to a point where these activities can no longer be tolerated. Not by any government and not by any organisation with political aspirations, or connections.

The reality here is that the UK will lose income, lost funds and lose options for the short term. This has always been known. We always knew that things would get a little worse. Yet NOONE is making any call on the waste of three trillion euro’s by the ECB on their Quantative Easing and the waste of now close to three trillion that the taxpayer has to pay back, whilst people like Mario Draghi walk away with a ton of money, a member of an elite banking group of 20 and no accountability to anyone. The media refused to hammer on the ECB on any of it and the lack of clarity and transparency that the ECB has. This happened in full view whilst they all had 50+ articles on the death of a journalist no one really cared about (aka Jamal Khashoggi).

My larger concern is seen in: “Garry Young, the director of macroeconomic modelling and forecasting at NIESR, said: “Leaving the EU will make it more costly for the UK to trade with a large market on our doorstep and inevitably will have economic costs.” The NIESR report found May’s deal would not be as damaging for the economy as Britain leaving the EU without an agreement, which would cost the economy about £140bn over the next 10 years.” From my personal point of view, these people are in it for themselves, most of them are. Even as I will immediately admit that this report looks actually valid and good, issues come forward to a degree that might not have been seen at the beginning of it all, yet the scrutiny after the report is also lacking making the issue larger. What some call ‘lucrative European contracts’, we see a lack of investigation on both sides of the isle in all this, because as a Brexiteer, I will never deny a Bremainer to voice their opinion, or their opposition to it all. It is the acceptance of democracy that demands it from within me. The UK has not really profited from the EU, merely large corporations have and that is actually the biggest issue with the entire EU at present. When we look at the 68 million consumers, many of them have not been able to afford any of it. The bulk of all of us are dependent on moments like Black Friday to get the hardware we normally cannot get. It is a known issue that the quality of life is still low all over the UK and in many other places. The only true beneficiaries of the entire EU setting are the large corporations. The local grocer sees no real benefit, whilst the large supermarkets have all these deductibles that for the larger extent benefit its board members, not the customers. People like Gary Young are eager to make mention of ”inevitably will have economic costs“, which is a truth; I and many realistic others do not deny it. Yet in equal measure we can move away from a multi trillion bond buying scheme that has done nothing for the people whilst making the banks fat and rich. Never before in the history of mankind did the banks and Wall Street have such a large hold on governments and its citizens and we sat down and let it happen. Brexit is for the UK the first step to undo that damage and it will take time, we all get that. So as we realise that the ECB failure, in part to unmanaged ‘freedoms’, lack of transparency and accountability has greatly impacted the UK, at that point will we realise that there is a weighted and loaded stage against all of us, in every EU nation. The second part in all this is what some call: ‘the EU gravy train’, I have made mention of it on a few occasions and the lack of actions in that regard is close to sickening. Even The Times gave us some time ago: “MEPs are clinging on to lavish, tax-free handouts for travel despite publicly pledging to repay them, according to an internal report by the European Parliament. They have kept an estimated €6million (£4 million) after promising before the 2004 elections not to claim the money. “They get exposed, promise to be modest and then keep riding the gravy train. It is appalling,” said Hans-Peter Martin, an Austrian MEP, who has led a campaign against abuse of expenses. The €60 million-a-year travel allowance system is so generous that many MEPs admit it amounts to legalised embezzlement of taxpayers’ money. MEPs are paid a first-class air fare for travel to the parliament, even if they use budget airlines. They make an average of £20,000 a year tax free“. We can agree that in that meantime something was done, yet how much was done? The taxpayers have to come up with 751 times £20,000, giving us a total of fifteen million pounds and that is only the travel item every year, one of a lot more items, so how much extra are these people getting? The simple fact that many of these issues have not been adjusted for over 12 years is a clear stage that the EU is the goose for exploiting extra income and benefits, something taxpayers never signed up for in the first place. Even now (8 weeks ago) we see: ‘Details of MEPs’ €4,416-a-month expenses to remain secret, court rules‘ (at https://www.theguardian.com/world/2018/sep/25/mep-expenses-eu-court-ruling) with in addition: “MEPs are also refunded first-class travel expenses and get a €313 daily allowance for hotel and living costs when working in Brussels and Strasbourg“, which in the most optional stage grants them an additional £60K each, adding fuel amounting to £46,562,000 to the tax payers fire. I think I have made my point, did I not?

When Brexit is done and we start seeing the impact, I predict it will be less than 2 years before the complaining starts, not from the UK, but from the other nations that now have to pay for the part that the UK will no longer be paying for and that is the ballgame here. When that happens, and it will we will see a rejuvenation by both France and Italy wanting to get out as fast as possible leaving merely Germany as the large economy to carry the weight of the EU and they will not be able to do this and it will all collapse. That is not a speculation; it is a certainty as I see it. It will only need one of those three to join the leave team and it will already fail. In light of all that is happening it seems to me that Italy is now the frontrunner before France, yet that might be what the horse lover calls a nose length photo finish. It was almost two weeks ago when French Marine Le Pen gives us almost the same view in the Daily Herald with: “French far-right leader Marine Le Pen is blaming the policies of the European Union for Britain’s exit from the bloc. “If the EU wasn’t what it is now, the United Kingdom would still have been a member of a structure that respects the nations, the people, that doesn’t impose migration polices and deals that have very heavy consequences on our industries and agriculture,” Le Pen said Friday at a news conference in the Bulgarian capital, Sofia.” It was for the most what pushed me into the Brexit field a few years ago; even as Mark Carney, Governor of the British Bank and his presentation in the House of Lords gave me reason to doubt that, the acts of stupidity by Mario Draghi and the ECB pushed me straight into the Brexit field, supporting Brexit. A situation that had been known for years, yet in light of 751 beneficiaries nothing was done to keep tabs on it and Brexit become a fact.

So as we accept the setting (via many sources) that Marine Le Pen is giving through “the EU wants to punish Britain by imposing “conditions that are unacceptable to a large majority of the people in the U.K. and to members of the British government.”“, we have seen several parts of that in the media. Is it not interesting how infantile the EU gets when you do not want to be a member? They threatened Greece to throw them out, whilst there was no legal option for the EU, and they demand the impossible from those wanting to leave. In that setting, who wants to remain a member? I would go with the speculation that the EU is for: ‘those who needs the power of exploitation‘.

It is getting worse

In this we look back at Greece. Some might remember the big boast that Greece made. I mentioned it in my blog: ‘They are still lying to us‘ (at https://lawlordtobe.com/2018/06/23/they-are-still-lying-to-us/), so when we were treated on June 23rd to ‘Greece ‘turning a page’ as Eurozone agrees deal to end financial crisis‘. Here Alexis Tsipras was happy to be quoted with: “Greece is once again becoming a normal country, regaining its political and financial independence”, we saw none of the EU reservations in a claim that was off by decades. I also commented in favour of the Greek opposition shown by Kostis Hatzidakis with: “The opposing party reacted to the credit buffer with ‘Kostis Hatzidakis said it reflected the lack of faith international creditors had in Athens’ ability to successfully return to capital markets.‘ And in this Kostis is right, the international markets have zero faith in their return, they rely on a small thing called mathematics and the clarity there is that the scales are not in the favour of the Greeks.” Now we see a mere four days ago ‘How Greece Is Scrambling to Save Its Banks — Again‘, the EU has become this short sighted, this convoluted in misrepresenting the facts to the people. So as we see: “Greece is scrambling to figure out how to save its banks — again. Burdened by bad loans that make up almost half of total lending, crippled banks remain one of the biggest hurdles to Greece’s economic recovery. There are even worries that the country may face yet another financial crisis if it can’t dislodge its lenders from their downward spiral. With bank shares tumbling, the government and the Bank of Greece are working on plans to help banks speed up efforts to shed soured loans” and this comes one day after: ‘EU: Greece has Not Implemented 16 Bailout Program Prerequisites‘, which we get from the Greek Reporter. We see: “The European Commission is urging Greece to proceed with 16 prerequisites that have to be completed by the end of the year, as agreed with creditors. The first report after the end of the bailout program in August that was released on Wednesday says that Greece is delaying to implement 16 important measures and reforms. Among them are the staffing of the independent public revenue authority, the repayment of overdue debts, the legislative framework for resolving the problem of non-performing loans and the development of the new primary health care system“, the article by Philip Chrysopoulos also gives us “Despite the fact that Greece’s 2019 budget meets the target of a primary surplus of 3.5 percent of GDP” will see a speculative setback (speculated by me) by close to 2% at the very least, in what will likely be a wave of managed bad news. The EU is now that useless and pushing down all the other European players. If only the EU legal setting had allowed for removing Greece from the Euro setting and EU economy settings in 2014, a lot of the issues (like Brexit) would never have been an issue. It is in my personal view greed driven EU stupidity that allowed for this. A blind faith in Status Quo that pushed the need of large corporations and that might become the downfall of the EU as a whole.

Do you still think that the EU is better for the EU economy? First Greece and now Italy are becoming the weights drowning the EU. Merely one hour ago, the BBC reported that: “Italy’s government says it will stick to its high-spending budget plans, setting up a potential stand-off with the European Union over its deficit.“, are you actually believing in fairy tales when you think that this will not hit back on the rest of the EU? Even as the Independent reported 13 hours ago: “The pound fell 0.19 per cent to €1.1284 off the back of reports that Italy is headed for a breakthrough with its budget, which would bring to an end weeks of wrangling between the EU and the Italian government.” we now get the reality that there was no breakthrough, we merely see more of the same and the impact of Italy is not immediately reversing and upping the pound against the Euro is it? In light of the revelation, the pound should be up by no less than 0.27 percent against the Euro (the gain and the 0.19 percent loss), we will not see that will we (or we will see it as late as possible so that the 0.27 percent can be largely minimalized. When you realise that the UK is getting unfairly hammered to this extent, would you want to be part of that group? And when (not if) the UK shows the improvements making the UK economy better, what excuses will the EU, ECB, IMF and Wall Street give the people of Britain?

To be part of any exploitative regime as the EU is starting to show it in a few ways. The evidence of this statement was shown by the Clean Clothes Campaign last June when we see (at https://cleanclothes.org/news/2018/06/11/complaint-lodged-against-the-european-commission-for-failing-to-uphold-fundamental-human-rights-in-trade-policy) ‘Complaint lodged against the European Commission for failing to uphold fundamental human rights in trade policy‘. Here we see: “Bangladesh has committed serious and systematic violations of fundamental workers’ rights. Conditions are unsafe for millions of workers in Bangladesh. Additionally, the labour laws of Bangladesh create significant obstacles to the exercise of the right to freedom of association, to organise and to bargain collectively. Further, the government has not effectively enforced even these flawed laws, and workers complaints to authorities are routinely ignored. Without bargaining power or legal recourse, workers have been forced to live in extreme poverty.” and when we realise that the lack of activities, naming and shaming those who are part of it all, whilst the EU remains inactive to a much larger extent, my case of large corporations being in charge of those acting in the EU parliament is close to well made, tailor made one could state. The lack of visibility given in the EU and the oversight on what is imported into the EU from Bangladesh is frightening. The Dutch CBS reported 3 weeks ago: “The average import price per vest exceeds 3 euros in 2018. With an import price of around 2 euros, vests manufactured in Bangladesh are considerably cheaper. Prices of vests from China (approx. 2.50 euros) are also lower than average, while vests from India were average-priced (around 5 euros) and those from Turkey more expensive than average (around 5 euros).” good luck trying to convince me that this is not about money and that there is a proper investigation into the Bangladesh situation. The fact that even China cannot match these prices is partially evidence enough. The fact that manufacture owners in Bangladesh are part of the 250% plus stage that we see with: “This is the largest quantity ever recorded and approximately 2.5 times more than in 1998“, the lack of questions by those gravy train people is just a little too weird and more questions are not coming forward. That is the European Union that its members seem to like and letting the UK out is also not an option. The analysts are merely the first circle we should go after (the first of several mind you). Any report that is not clearly documented with the names of all the people involved in this should immediately be disregarded and kept on record for prosecution and smiting afterwards (when those reports are proven to be incorrect) at that point I wonder how many studies we will get that are so overwhelmingly negative. And it is not merely the analysts. The names of the people commissioning for the report and the clear definition of the question that was asked will also be set to scrutiny. I wonder how many politicians and corporate figures will suddenly run for cover and darkness like a group of cockroaches.

Feel free to disagree or even oppose my view. Yet also remember, I merely want to see the names and all data on those so called ‘commissioned studies’. Is that such a bad question? When we are given the results, should we not wonder HOW they got there? Is that not a duty we all should have?

When we look at The National Institute of Economic and Social Research, we see a clear stage of names, Arno Hantzsche, Amit Kara and Garry Young (which is a proper thing, mindyou). We also see on page 7 and 8: “The Governor of the Bank of England estimated that by May 2018, UK household income was 4 per cent lower than it would otherwise have been as a consequence of the referendum (Carney, 2018): “one third of the 4 per cent shortfall in real wages reflects stronger-than-projected inflation, which is almost entirely accounted for by the referendum-related fall in sterling. The remainder reflects weaker-than-expected nominal wages, the majority of which can be accounted for by weaker-than-anticipated productivity growth“, which should not be disregarded.

Am I opposing my own view?

No, when you see the charts in that page, we see the UK not being in a good place. Yet considering ‘UK economic growth relative to other G7‘ and ‘UK inflation relative to other G7‘, the UK situation would not look great whilst this is staged up to 2018, and now we get the good part. The G7 are Canada, France, U.S, U.K, Germany, Japan and Italy. Now consider the Italian part dragging down due to the stupidity of their budget decision (which might be seen as their right). In addition the Greek issue will drag down the EU as a whole and the USA is in a trade war that will also impact the USA, all parts seemingly not taken into account and suddenly the UK already looks a lot better in all this. Now, we cannot completely fault the report called ‘The economic effects of the government’s proposed Brexit deal‘, yet there is already a non-negative impact for the UK (it is a stretch calling it a positive effect). In addition we see properly placed “We have assumed” in the proper places and only thrice, which is also a good thing and for the most utterly unavoidable. We also see in one place: ‘Sterling effective exchange rate (January 2005=100)‘, which is possibly merely arbitrary, from my personal view the fact that 2008 and 2016 have impacted it all might also be a stage where the UK had more hardship than before and as such the three stages should have been included. My final issue is on page 15; I do not doubt the numbers or the statement perse. Yet when we consider “Ramasamy and Yeung (2010) find that openness to trade benefits in particular FDI inflows to services sectors, much more than to manufacturing. Ebell and Warren (2016) survey the empirical literature and calculate that reverting to trade under trade arrangements similar to those between the EU and Norway would reduce FDI into the UK by 8–11 per cent, and by 11–23 per cent under a Switzerland-type relationship” that openness of trade also implies the open acceptance of the unacceptable ethical stage that Bangladesh is showing to be, we need to ask the tougher questions on EU inactions to the degrees currently seen. You see, when we accept one part, we need to accept that all these sweatshop articles are out of bounds. They are merely emotional banter pressed on those trying to meet budgets, there is no humanity left, we should not allow for that. In this way my statement is harsh, yet that is what the EU has become, a harsh proposer of status quo at the expense of whatever is coming next. If you do not agree, feel free to ban all Bangladesh T-shirts, leaving others with 215 million T-shirts to sell; was that example too direct?

Even when we accept the part of ‘how the deal affects uncertainty and confidence‘, which is a topic that will remain as there will always be uncertainty, the entire report is seemingly staged towards the bad side, whilst any improves economic marker from the second year onwards are basically ignored. We can argue that year one will have no upsides, yet the stage of no upsides in year two is lose to unimaginable. Apart from the ‘EU donation‘, which has been significant, the downturn of Italy and Greece that will no longer impact the UK is clearly escalating and France is basically scared shitless of that part. France is so scared as it is in a much worse position than Germany currently is, who will also feel that impact to some extent.

No matter how this plays, it is a mess that will test the reality of a lot of people. My largest concern is not how good or how bad things get, it is the fake revelations by speculative analysts that are the impact of a lot of things and the moment when we see the managed bad news after the fact, we will also see the weakness that has become the EU, in light of an already weak USA, this merely strengthens the need for a segretative community (read: nationalistic approach to national issues). It is the one part where I see eye to eye with Marine le Pen: “the policies of the European Union as well as the lack of transparency and non-accountability” are the biggest drivers in this entire sordid affair.

I wonder how draconian the changes will become when others realise how correct my view of the matter was. I am less likely to facing the fact that I was wrong, there is too much documentation pleading for my view, especially as the Wall Street Journal reported “Greece’s Eurobank Ergasias SA said it will acquire real-estate company Grivalia Properties REIC, boosting its capital and paving the way for the creation of a “bad bank” to help deplete its pile of nonperforming loans” a mere 5 hours ago. So when exactly did the people ever benefit from a bad bank solution? We saw that in 2013 with the Dutch SNS and Reaal setting. So as Brussels treated us to: “The costs to the Dutch taxpayer were still substantial, resulting in a deterioration of the budget balance (excessive deficit procedure definition) for 2013 with 0.6% and an increase in EMU debt of 1.6%“, we see Greece doing the same 5 years later. As we look at the quote: “In fact, since the nationalization the Dutch press has regularly published pieces that show how the commercial real estate has been mismanaged for a substantial time period. Did this go unnoticed by the regulator? Why did it not intervene?” We now get to unite that part with the overwhelming inaction of the EU and the unacceptable actions of the ECB, so this will be a much larger thing that Greece is printing on the rest of the EU then the people are currently aware of and the impact will be felt much larger, the fact that the bulk of the EU states cannot keep a proper budget merely makes mathers worse (not a typo, it means ‘reaper of hay’), and now I am in a state of moments uncontrollable deriving laughter.

The lack of visibility to several parts (an issue I cannot blame the media for in this case) is just incomprehensible. In part this is due because there are so many elements interacting, yet the fact that the issues are not visible is still a matter of great concern, and also an additional reason to push for Brexit.

 

Advertisements

Leave a comment

Filed under Finance, Media, Politics, Science

Is it merely timing?

When I looked into some off the Mario Draghi matters two days ago, I made a reference to his little kart, a kart full of tricks or is it a kart of indiscretion? So let’s take a look at the alphabet, the alphabet of ABLV

A is for Actuality

You see, the European Central Bank publishes a list where all the supervised entities are and the list starts with “Cut-off date for significance decisions: 1 January 2018“, so as we are in March (way past January 1st) and that same attached list gives us on the 81st position the ABLV Bank, AS, with the mention of ‘Among the three largest credit institutions in the Member State‘, whilst there is also (non-supervised) the ABLV Bank Luxembourg, S.A. in Luxembourg, yet stated and linked to the ABLV, should we wonder if we are being had? In light of the news two days ago when we were treated to “Draghi did address a question on why ABLV Bank received emergency support from the Latvian central bank before the ECB declared it failing or likely to fail. He said that the Emergency Liquidity Assistance policy – under which national central banks rather than the ECB decide to provide support to troubled lenders – is a “remnant of a past time” and should be reformed” (Source: Australian Financial Review), whilst the bank was being supervised according to the ECB, the fact that they are grasping at the notion that the left hand does not know what the right hand is doing, is that not an indication on how massively useless and overpaid the members of the ECB are? Just so that we are all in clear and that we all understand what is going on, let’s look at ‘supervision’, which the dictionary calls ‘the action of supervising someone or something‘, and with ‘supervising’ we get ‘observe and direct the execution of (a task or activity)‘, it seems to me that the ECB was not doing any observing or directing, so if the ABLV did not inform the supervising entity, I have a hard time to comprehend the Bloomberg article (at https://www.bloomberg.com/news/articles/2018-03-02/latvia-analyzing-rimsevics-s-role-at-ecb-as-he-returns-to-work), where we see: “Latvia is still considering the ramifications of central bank Governor Ilmars Rimsevics’s status as a suspect in a bribery probe, as he returned to work this week and weighs up how to continue his role at the European Central Bank“, in my view, either the ECB knew in advance certain matters, or we have a different puppy in our midst. Now let us be clear, one is a setting of corruption, the other is the ‘receiving of emergency support from the Latvian central bank‘, yet the fact that this all happened during the oversight of the ECB makes it twice the size of the issue. The ABLV went to the Latvian Central Bank (Governor Ilmars Rimsevics) and got emergency funds, yet what was the origin of those funds? So when we see “Both ABLV and Rimsevics deny the accusations in cases that the authorities say aren’t linked“, my response would be ‘Really? So who are exactly those authorities?’ It seems like a simple question but it is one that we will never see an honest answer to I reckon. The links are not clear, but consider the following accusations.

First we have “The U.S. Treasury Department alleges ABLV engaged in institutionalized money laundering and violated sanctions put in place to counter North Korea’s weapons program

Second we get “Rimsevics has denied any wrongdoing, and Latvia’s Defence Ministry said that the allegations were part of a “massive information operation” by an external actor.” I used them in the article (at https://lawlordtobe.com/2018/03/01/the-failing-mario-draghi-kart/), yet who exactly was the external actor?

It is the second one that is weird, so how did the Defence Ministry get involved in a banking issue? Did it come from the office of Minister Raimonds Bergmanis, it would be an interesting tug of war between him and me, because I have my own centre of gravity and he is a three time Olympic contender in the category of weightlifting. I did not have all the information I needed in that piece, and I was juggling a few issues, so I moved it all along to today.

B is for Bloomberg

Bloomberg ends with “there are no signs other Latvian banks are experiencing outflows after the ECB decided to close ABLV on the grounds that it was failing or likely to fail. What happened to ABLV is a signal to other banks to follow the rules, she said“. Yet is Finance Minister Dana Reizniece-Ozola giving us the goods? Why did the Defence Ministry get involved? Was it to emphasize the weapons accusation? Clearly that would have been an issue that resides with Latvian Intelligence. So as Reuters gives us “Ainars Latkovskis, the head of the national parliament’s anti-corruption committee of lawmakers, who also urged Rimsevics to step down” as well as “Latkovskis, who is authorized to listen to reports from the heads of the Latvian intelligence agencies, dismissed hints by some local officials and politicians that a Russian campaign of disinformation might be behind the case“, it seems that the Intelligence official is either trying to stay out of this or we can see this as a sign that the SVR RF (the Foreign Intelligence Service of the Russian Federation) has been whispering in someone’s ear and the culprits have overplayed their hand. Now no matter what has happened in that tier of the industry, it still gives us that the ABLV made a deal for funds with the Latvian Central Bank and the news as shown by the media is giving us that the ECB was either unaware or was informed after the fact with ‘Good news, we solved the problem‘ and now we see that the banks who are on the oversight list are either not getting supervised or they are ignoring their supervisors, I wonder which scenario is worse for the ECB.

L is for Liable

If you think it does not matter, think again. We pump billions into the UN and it cannot arrange a ceasefire (Syria), we pump billions into the European Union and the ECB is casually unwilling or unable to do their job and those people are fetching a lot of money every year. Two entities who are now proving to be more and more facilitators for the wealthy as well as paper tigers with a fluidic agenda that merely spells ‘compromise to keep the engine going’. So when did wee surrender our tax funds to those ends?

So was this all done through the allowed whisper via Sergey Yevgenyevich Naryshkin? I am merely speculating here, but the parts and numbers currently do not add up. You see, as Reuters gives us “The ECB appears to have been blindsided by the ABLV case, highlighting how thinly it is spread in supervising Europe’s biggest lenders and raising questions about a system of euro zone supervision just three years old“, this is seen (at https://www.reuters.com/article/us-ecb-russia-vtb/ecb-drops-supervision-of-russias-vtb-arm-in-the-euro-zone-idUSKCN1GE2N8), can we say that it is that simple? It remains pure speculation from my side, yet when we see “The European Central Bank has stopped supervising the Austrian arm of Russian state bank VTB after it slimmed down its European operations, the ECB said on Friday. A spokeswoman for the ECB said VTB’s new set-up in Europe no longer warranted direct supervision, which was now in the hands of Germany’s national regulators, Bafin and the Bundesbank” I wonder if there was anything simple on this. We could argue that Sergey Yevgenyevich Naryshkin did exactly what he was supposed to do, to serve HIS country. Yet the information gives me the feeling that this looks like a line of banks with Latvia between the Latvian ECB and the Russian ‘SVCR RF‘ bank. The two outside parties agree to keep each other afloat by shaking hands and pushing at the same time the ABLV over the edge in a combined effort. What some did in primary school (the old tactics are usually the best).

Still, this is all merely speculation from my side mind you!

V is for Voter

The question that remains is how the US authorities got to that jump and where is the evidence? Apart from the fact that one accused of bribery is allowed back into his office until the dust (read: investigation) settles is also cause for concern. You see, the news (at http://www.mod.gov.lv/Aktualitates/Preses_pazinojumi/2018/02/20-01.aspx) gives a part, but when we consider it and dissect “Latvia’s security-sector personnel have raised the alarm that outside actors could be using these current financial and banking scandals against Riga. The Latvian Ministry of Defence has pointed out that the AP news agency’s reporting on Latvia’s connection to various international financial corruption schemes has been reposted with unusual frequency on numerous websites known for distributing messages supporting Russia. As such, the defence ministry has called this media blitz a possible “hybrid”-style operation within a broader information war against Latvia“, we could agree that part of this is an issue. Yet is the foundation wrong? Is the bribery a fact? If so, why the hell is Ilmars Rimsevics allowed back in his office? If we see statements that there is proof, why not give that out to the open? So who were the outside actors? You see, accusation of bribery requires evidence and it is not out of the blue that Russia would expose bribery so that their operations could profit. That is not merely Russia, American politics and Wall Street have operated on that premise for decades, so it is not altogether weird to see Russia play a similar game, if that was the case. So even if there was an ‘information war against Latvia‘, it was done under the noses of the ECB and Mario Draghi. It was not merely a “remnant of a past time that should be reformed“, it was an option where the ‘the Emergency Liquidity Assistance policy‘ was overlooked by overpaid ECB executives, especially in light of the fact that by their own reports that the ABLV was under supervision.

Bloomberg supports my views (at https://www.bloomberg.com/news/articles/2018-03-02/draghi-confronts-limit-of-his-powers-as-latvian-standoff-endures), where we see ““This reveals the impressive lack of power of the ECB in such circumstances,” said Stanislas Jourdan, the director of Positive Money Europe, an advocacy group calling for more transparency and accountability on economic policy“, which on one side is just as it should be about the sovereignty of a nation, but the fact that the ECB are confronted with their own foot in mouth protocol at the expense of millions, if not billions is a larger worry, because they already pushed a $3 trillion debt on the people of Europe. I also support the view we see at: “Draghi already expressed dissatisfaction to ECB officials in the week after Rimsevics’s detention that enough details from Latvia hadn’t been forthcoming, according to people familiar with the matter, and that may still be the case. Latvian Finance Minister Dana Reizniece-Ozola said on Friday that the anti-corruption office is “in the process” of giving the ECB all relevant information“, it is not about the ECB, it is a Latvian situation and in this Mario Draghi gets to do what most EU puppeteers do so well, they can bloody well wait (whilst still getting paid high amounts of money). Yet, in part this is not merely a waiting game, the fact that the voters are taking more notice of this mess is not helping him any, but that is the way life works and it is not always working in your favour. So when the Globe and Mail gives us “Did European Central Bank boss Mario Draghi save Italy or merely set up the world’s third biggest debtor for permanent zombie status? As Italians head to the polls on Sunday, the parties, big and small, are showering voters with promises of goodies galore“, we see the deadlines that the ECB has, it has a few and even as there is unlikely to be a stable Italian government, the fact that they won’t worry the ECB like Frexit Marine Le Pen or Brexit Nigel Farage, so they are not too worried, but the overall financial issues will remain and Latvia is not helping any with the news that they are the cause of at present. In the end, the question should become, how come that a supervised bank was able to do this? Because the answer needs to be coming from the people who are seemingly overpaid for work they basically did not achieve and that is not merely Mario Draghi; that list is a lot larger and in this case it might just exclude the one man at the top.

 

 

Leave a comment

Filed under Finance, Law, Media, Military, Politics

Pasta Politica Rifugiata

Yes, Italian politics is at times like an Italian meal, chaotic on all levels and that is before the neighbours drop by to quickly say ‘hello’. So as the associated press is informing us on how the G20 members and their spouses are enjoying: “turbot fillet from the North Sea with spinach followed by fillet and cheeks from Friesian beef and for dessert, the guests could choose cheese or raspberries“, we see on the other side of the coin both “the European commission offered to resettle some 37,000 migrants, and relocate about 160,000 refugees from Italy and Greece. However, the Estonian authorities didn’t refer to this latest call, but rather focused on another way to deal with the issue” as well as “health workers, volunteers and police officers in southern Italian ports scrambled to identify, assist and send over 10,000 newly arrived migrants to reception facilities, the Italian government threatened to stop allowing NGO rescue ships to disembark migrants at its ports. The EU and its member states acknowledged that Italy’s capacity to host those attempting the sea crossing from Libya is reaching its limits, but did very little to help beyond pledging some additional funds and endorsing an Italian proposal to draft a code of conduct for the NGOs“, we see that the media has been lacking to commit to a decent amount of illumination of events. The latter quote from the EU Observer is directly in opposition with the Deutsche Welle as they give us “The Italian government threatens to close its ports and insists on NGOs signing up to a ‘code of conduct‘.“, so as one tells us that a code of conduct needs to be drawn up, the other one states that the NGO’s need to sign up for one. The BBC is clearly reliable and on the side of the EU Observer as they give us: “A deal has now been reached between France, Germany and Italy to tighten regulations on NGOs and develop a code of conduct” (at http://www.bbc.com/news/world-europe-40505337), yet this is not enough, the BBC also gives us: “Ambrogio Cartosio, the chief prosecutor in Trapani, said he felt that the NGOs were somehow encouraging the people smuggling trade. ‘It pushes the traffickers to load the migrants on ever more precarious vessels. They can be sure that after a few miles, they will be picked up by the ships,’ he told me. The buying and selling of people is big business and the human trafficking trade continues to become more sophisticated and organised“, which gives the alarming notion that the NGO’s are propelling human trafficking as the flesh dealers need not concern themselves with the ‘whole trip‘ maximising their profits even further.

In all this Italy, a nation that seems to be ‘jet set’ is stricken by hardship and poverty. As Italy is dealing with a youth unemployment rate of 36.9% and a total unemployment rate of 11.3%, the Italians are feeling the crunch of the cost of living. Even as the search engines are giving us on how ‘affordable’ life in Italy is, we get the clear view that it eludes these people that to meet the cost of living, one needs to have a job. The refugee crises is draining resources even faster than ever before and Italy has no clear option to deal with these 200,000 mouths to feed, with 10,000 arriving merely a week ago. So as we understand that there is a need for a code of conduct, we also need to realise that a man bleeding from the jugular might not have the strength to go over the papers before signing. Even as the amount of refugees getting in via Greece is slowing down, the rush to Italy is only picking up. The BBC article in addition shows on how massive the rivers stream of refugee is through Africa. From Somalia and Senegal, all bound for Libya and then Italy. There is in addition the security factor to consider, with this many refugees, there is no telling how many people of ill will are coming through as well. Even at 0.1% that is an optional 200 extremists. In this we see that the issues involving AISI are now escalating as well. The reality is that even as Sicily is in the Italian south, the lacking administration to register, tag and identify these thousand plus arrivals a day is now compromising the security of Italy. Let’s be clear here! I am utterly convinced that well over 99% is merely trying to escape utter poverty in Africa, that is not in question, yet the rest is optionally not and who are they? With the current situation, once in Italy their path is open to Rome and the Vatican, France, Austria and Switzerland. From there they could vanish into the wind. Apart from the need for a tagging system, there is an additional need. Not merely the need for registration, but the need for identifying the streams of how they got there and how. You see, we are all concerned about the short term issues, that most are forgetting that the facilitators of all this are in it for the long haul. We might not see any results for now, but in the long term we will get a pattern which will aid us in not merely finding the facilitators, but finding out whether it was merely cash or extreme ideology that is driving them. You might think that this is nothing and that I am making a big wind, yet am I? Consider the events of Paris; the moment any extremist would successfully create damage in the Vatican, how long would it be before someone wants the head of the head of AISI staked on a pike on the wall of the Castel Sant’Angelo?

I reckon that call comes within 24 hours of any successful event. The issue is that this situation has been around in Greece as well and so far it seems that there is no effective system in pace and all this has been going on for a few years now, so I reckon that there has been too much short term thinking in all this. So as we consider “The rest of the EU should step up to help Italy host the migrants and asylum seekers, but there is little willingness across the bloc to do this” (at https://euobserver.com/opinion/138458), as we see this, we see yet another failure of the EU, when we read: “Policymakers in Brussels grumble that the men, women and children arriving in Italy are not “real” refugees, but economic migrants – despite the fact that 43% of them are being granted protection on asylum or humanitarian grounds“, it is like watching the pot calling the kettle charcoal on ground of politically correctness. In all this Giulia Lagana is correct on several levels, yet from her point of view forgets a few sides (on perfectly valid grounds), as she looks at the facts and numbers as the senior EU migration and asylum analyst at the Open Society European Policy Institute. There are other considerations that are not on her desk, which is fair enough. In all this, as @laganagan she remains actively tweeting on a daily basis.

So what is to be done?

You see, before you can control a situation, you need to comprehend it. Now, whether the refugee is economic migrants or refugee does not seem to matter much, that person wants a better deal than they have and they will move mountains to get to a place where they could have a future. You the facilitators in all this are another matter. They have goals, and for a person to get from Senegal to Libya requires a massive trip under, at times, the deadliest of conditions. So either there is a support system in place to transport people and it is way too big a trip for one player. Or we are seeing the growth of prostitution through human trafficking in a way we have not ever see organised crime do before. Without data there is no way to tell and without tagging and identifying these people, all the people who arrive, the chances of mapping the options and possibilities, the EU targets will merely be dealing with the consequences until the stream runs dry and the EU as a whole does not have that amount of time.

So as we now see wave after wave of media stating that EU politicians are claiming that Italy is not alone, we need to wonder on what the hell they have been doing in actuality for the last 2 years. You see, Greece was already past the point of buckling and duplicating a police of Greece towards Italy should have been nearly as easy as pie, yet as we see, that was not the case. So what were they doing? So when we read as yesterday’s news that “EU interior ministers on Thursday pledged to back an urgent European Commission plan to help crisis-hit Italy, which has been overwhelmed by a wave of migrants arriving by sea from North Africa“, can we agree that these people have seemingly been doing fuck all?

In this same source (the Local Italian), we see “Central to Thursday’s talks was a European Commission plan which earmarks 35 million euros ($40 million) in aid for Rome as well as proposals for working with Libya and other countries to stem the flow of migrants“, which is a joke to say the least. In addition we see “While no new measures were adopted at the meeting, ministers expressed support for a “plan of action” presented Tuesday by the European Commission which puts in place, “better and more quickly”, certain elements previously agreed upon, according to a European source“, which reads to me like: “we need to get a plan of action, we have not put anything decent in place, but we word it to such complexity to leave the impression something had actually been done“, the media overreaction in all this is as I personally see it a mere facilitation for EU-flaccidness

In this Italy is also making mistakes. This starts with Italy’s Foreign Minister Angelino Alfano. We see this when we see “In order to lower the number of people arriving here, we must reduce the number arriving in Libya“, which is not incorrect, yet the BBC clearly shows that people are coming into Libya from Senegal and Somalia, making the issue a lot larger and cannot be done by just a group of people, this needs support from organised players. If this is not the case, that path would be covered with the cadavers of hundreds of thousands of people who did not survive the trip, which is a mere adaption of applied logic.

The second quote that does not make the cut from the same person is “If border controls in transit countries are effective, then the ‘tickets’ sold by the biggest criminal travel agency in history would lose their value and if the traffickers can’t guarantee an arrival in Europe, their travel agency would go bankrupt,” he said. So in that instance we look around corruption in Africa as well as the fact that these refugees have no internet, are in the dark, so that means that these travellers will continue to come for now. By the time there is an actual impact of incoming refugees these facilitators will have left the shores with a trunk full of cash, living the life people in Europe have not been able to afford for the longest of times.

So to some degree Angelino Alfano is correct, he just has no idea how to go about it for now and that is not something we can blame him for, yet the utter failure the EU is showing to be, there is plenty of blame that can be placed, because when we see a need for a ‘code of conduct‘ for NGO’s whilst this mess has been going on for years and with the issues shown in Greece, it seems that several members of the EU councils have been asleep at the wheel. Is that what they get paid for? #AnyoneForBrexit

These issues will impact the general elections that are now less than a year away, even as we recognise that the only EU-exit party is Northern League with Matteo Salvini, we see in equal measure that his party has no chance of winning so that risk is currently not in play, yet equally no less anti-EU Beppe Grillo is for now still a contender, yet there is no way to see how that goes and unless the refugee is properly dealt with his 5 stars will rise. Still the chance was not as high as it was in France and with their Frexit averted; Italy might not be willing to go there. In the end, Mario Renzi and Berlusconi are not willing to get out of the EU, so the refugee issues will impact them both. It the EU does not decide to get of their fat asses, things might still go wrong in a few ways for the EU, that much is at present a given, as more and more people are realising that the media is playing them for whatever reason they do, we will see a polarising view of the people and consumers. As there is a rising view of ‘Broader questions on distribution of wealth and power are being considered‘ as well as ‘voters are no longer buying the free-market talk‘ we now see that other elements will have stronger influence and in this, the people are becoming more and more distrustful of what the media regards as ‘the news’. This is not the setting of mainstream news media and these so called iPhone reporters. It is the shifting view that we get from often too carefully phrased issues, which are now more and more recognised as generalist speaking of ‘remaining casual‘ and a lack of ‘clearly communicating issues‘. Weirdly enough, that is a side that could impact Italy to a stronger degree. If either Mario Renzi or Berlusconi wants to get a landslide victory, they would merely need to drop youth unemployment rates by 3%-5% before the election that would seal the deal for them.

It will be a messy dish of grub to achieve, yet the need to get something massive done in this Italian Spaghetti drama is requiring no less. A meal might impact it, but the guarantee of a job sets food on the table for a longer time, a growing essential issue for Italians.

In this finality I go back one more time to the Deutsche Welle article. There we saw a few days ago “Joining Cochetel at the report’s launch was Eugenio Ambrosi, director of the International Organization for Migration’s Brussels office. “Let’s not forget that member states in Europe have also a code of conduct – it’s called European law,” he said, “which entails a variety of things, which includes – and I will not stop repeating it – which includes the duty and obligation to show solidarity [with refugees] in fact and not just in words.

As such, we see a clear given quote, which might be seen as evidence given by Eugenio Ambrosi that the EU has been lacking the required need to act in several fields regarding refugees. Even as some claim that the Migrant Crises started in 2015, there is plenty of evidence that the stream started in 2011 when Syrians were trying to flee the Syrian war. The UNHCR reported that refugees exceeded 750,000 by December 2012. So where did the overpaid people working for the EU in Brussels think that these people were going? Not to the places of plentiful Europe? Who were they kidding? So as this mess has been escalating for well over 5 years and there is a shown lack of infrastructure and support systems to deal with the escalations (as I actually also wrote about a few years ago), we see that there is a growing need for the news and the media to take an actual serious look at some of these players. They have been paid extensively until now, which would beckon even more questions.

 

 

 

Leave a comment

Filed under Finance, Law, Media, Politics

Conservatively valued

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

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

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

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

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

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

Leave a comment

Filed under Finance, Media, Politics

Dangerous levels of extinction

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

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

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

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

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

 

Leave a comment

Filed under Finance, Media, Politics

Banking France

The last few days have seen a serious change in multiple directions in Countries all over the place (in that rugged area known as Europe). One part is not a surprise, the news that the ‘Pound jumps against euro‘, it is the second part ‘as Germany’s inflation data shocks markets‘ that is cause for concern. We should not be that surprised, because it had been known that Germany was facing a slowdown, which in light of so many events in Europe makes perfect sense. It is the by-line “as German inflation fell short of expectations to give a big setback for the European Central Bank (ECB) programme to support the Eurozone economy” which is the actual story. You see, last week I mentioned Mario Draghi and the dangers he represents, we now see the first chunk of worry that came from ‘Decoupling Draghi is hard to do‘ (at https://lawlordtobe.com/2017/03/28/decoupling-draghi-is-hard-to-do/). The mention of Reuters and how big funds are having concerns is now more than a fact. The quote “This assessment had raised hopes the ECB could perhaps cut short the money-printing programme, which injects billions of euros into the economy each month. But the fall in German inflation will be seen as a sign that money-printing will not be reined in any time soon“, implying more and longer printing of money to do something that never worked the first time around and will in equal measure fail the second time too. It is a side that the papers are not touching, not by a mile, yet it is also the reality that we face in the upcoming reality of Frexit. This is seen in two parts.

The first are the big 4 powers in the EEC Economy. France, Germany, Italy and UK. With UK triggering article 50, the stability of the Euro is now gone. Whether we have Frexit or not, the reality is that the Euro has relied on the German economy for a decade and now that there is an issue, that whilst The French economy has been stagnating since at least 2015 (actually longer than that), now with the German economy taking a dive towards no-growth, the issue changes dramatically, because the Italian lack of growth had been an issue for some time. With the German setback, the dangers of printing money becomes a lot more visible and the acts of the ECB needs to be questioned by several governments, who are actually not doing that. In equal measure the media at large seems to steer clear from the entire ECB debacle, which is a worry on another level. All this is now part of another shadow that is covering the ECB. Reuters has given view to the following quote “The documents show repeated violations of the ECB’s own rules by its executive board, chaired by Mario Draghi, and come amid staff complaints of favouritism at one of Europe’s most powerful institutions” as well as “Staff representatives complained last year to the European Parliament, which oversees the ECB, that dissent was discouraged at the bank, potentially hobbling its ability to spot the next financial crisis” an issue that should be very much on the minds of every European government, as the ECB is costing them a fair amount of money. Another Jewel from Reuters is seen in the quote “Recent comments from the ECB were misinterpreted, according to a Reuters report citing ECB officials, after President Mario Draghi dropped some of the more dovish central bank language and did not replace its bank lending facility at its latest policy meeting on March 9” as well as “adding to the slightly hawkish feeling, ECB policymaker Ewald Nowotny said a week later that the central bank would decide in the future if it would raise interest rates before ending its quantitative easing program, a comment that took market participants by surprise“. Whilst we can argue on the value of “The core inflation rate is currently running at 0.9%, not close enough to the ECB’s stated aim of ‘near to 2%’ to cause President Draghi to change anything, even rhetoric, at the next ECB meeting on April 27“, the reality is that we are facing a quarter of feigned misinformation due to what I would see a as an unacceptable level of ‘miscommunication‘ (read: misinterpretation). Especially when we consider that quote ‘comments from the ECB were misinterpreted‘, misinterpreted by whom? By the economic governmental powers, the banks, the traders? Is a major factor of the ECB not ‘clarity‘? Should clear communication not be seen as a way to thwart ‘misinterpretation‘?

The fact that the ECB is not just showing favour in the wrong places, but a level of non-clarity gives a second failing by the ECB, that whilst they are still printing billions of euro’s on a daily level. Not the place where you want to be anything less than crystal clear. It is that factor that is enabling Marine Le Pen and giving more and more concern towards Emmanuel Macron. There is a second sight to all this. You see, part of the entire election is set on what some agree ‘what is good for France’, yet who decides that? When we consider “The major candidates for the French presidential election Emmanuel Macron, Marine Le Pen and Francois Fillon all present their economic programmes to the Medef employer’s federation today. All will be hoping the influential group will give them the “business-friendly” imprimatur” (source: Reuters), It is in that light that I refer to the Saxo Group, who has an interesting article (at https://www.tradingfloor.com/posts/europe-divided-the-front-nationals-absurd-economics-saxostrats-8577141), there are too many quotes to just pick from and in the end, my version might come across warped. What does matter is the question that follows:

If we agree that the New Franc is not immune to speculation, how come that a national currency is (as claimed) so susceptible to speculative attack?

There is no clear answer, yet it is an important one, one that Marine Le Pen needs to answer. In addition, the article implies that Medef needs the ECB and that there is a link, as such we get two parts, the first is that Marine Le Pen is getting discriminated out of two economic groups, making the French elections no longer fair. The second is that the ECB has been setting up links and connections giving them unelected national powers in nearly every European nation, how is that in any way acceptable, especially when it gives them the influence over elections?

So why is it an issue?

For me, not that much, yet when we consider the actions since Brexit intent, and now that Brexit has started, we suddenly see the same panic driven media mob with headlines like ‘Study: Frexit chaos would be ‘worse than collapse of Lehman Brothers’‘, where we see the label ‘doom-mongering‘ with the quote “the population at large is in favour of the single currency and that there is little to suggest any economic benefit to doing so“, this whilst we know that leaving the Euro is almost the singular reason that Front Nationale with Marine Le Pen is this popular. Then we get ‘Why ‘Frexit’ not Brexit should top bond investors’ fears‘, with the mild claim “‘A more pressing concern [than Brexit] is ‘Frexit’,’ he said. ‘Le Pen is polling well in the run-up to April’s presidential election and looks likely to win the first round. She has pledged to lead France out of the single currency“, which is given AFTER Article 50 was delivered to the processing parties. What remains unstated is that with 2 of the 4 large players remaining, the Euro cannot survive. They are mellowing it down with ‘the Front National is unlikely to win sufficient National Assembly seats to enact her policies and such a decision would probably be subject to a referendum’, yet as I see it, when the French realise that Macron in conjunction with Manuel Valls is gaining momentum, the French are angry (according to several sources), in addition Fillon is losing ground too fast. There is no doubt that it will be between Emmanuel Macron and Marine Le Pen, even as at least three elements have decided to discriminate against Front National, her numbers are still stable. This should be a worrying factor to many as this implies that her vote will be carried by just the French voters, no tainting by Medef or pressure through foreign European leaders.

No matter who wins, there will be a powerful backlash. Even if Macron wins, France needs to realise that changes are essential to survive what comes after. Italy is up next and there the mood is also heavy. The Financial times was ‘timid’ with ‘Italy is falling out of love with Europe‘, it is however not that easy and it is getting harder in Italy on several fronts. Here is largely a blame game in session and the truth is that Europe, the ECB and others are not that guilty in the hardships that Italy faces. Its debt is far worse than Greece and the Italian banks have no way to deal with this problem. So there is a chance (not a very realistic one) that the next in power will start the Italeave signal. Even if that happens, the chance that France and Germany can keep the Euro afloat is much more realistic, but it comes with a two decade burden that any hardship or any recession (read: some kind of economic crash) would be disastrous to both the two nations and the Euro, a risk that the ECB, IMF and Wall Street are very willing to take as it gives them time to find other solutions to not get killed in the process.

So in the end, we are now 36 days away from learning whether the Euro will be dead or only near death, yet still dying.

 

Leave a comment

Filed under Finance, Media, Politics

Decoupling Draghi is hard to do

Like a bad disengaging train, we see more and more how the Euro has become a dangerous place to be. I have pointed the finger at Mario Draghi more than once. He is not the only reason mind you, but he is a massive one. As I see it, a facilitator towards the Status Quo of a coin no one wants. Europeans see how their retirement is devaluating itself, others see a coin they do not trust, they do not like it, and to be honest they do not know why, but the numbers do not add up. Wall Street loves it, as they can leverage iteration after iteration of floating values as they can reset the currency seesaw, but over a dozen nations in Europe cannot, their hands are tied. It gets even worse in the near future if Japan is any indication to go by. Min Jeong Lee and Yuko Takeo from Bloomberg (at https://www.bloomberg.com/news/articles/2017-03-27/escape-route-eludes-japan-stocks-still-hostage-to-u-s-sentiment) are showing you the prelude to the disaster that Europeans could possibly face within 24 months. The first statement is already showing u the issues that Europe will face soon enough: “Japan’s stock market is again showing itself handcuffed to U.S. growth prospects and its own currency“, In that same sense Europe will soon enough be depending on US growth prospects and the massive debt that Mario Draghi is pushing onto the Euro nations. Now, we need to realise two elemental parts:

  1. Europe is not that deep in debt, but the holes that Mario Draghi is creating is already having an impact. “Big bond funds are becoming increasingly reluctant to lend to the euro zone’s weakest members, looking past a crowded electoral calendar to an eventual winding down of the European Central Bank’s ultra-loose monetary policy” (source: Reuters), with the personal change, setting ‘European Central Bank’s ultra-loose monetary policy‘ into ‘irresponsible spending‘. As the time frame goes, Brexit and Frexit might be just in time to avoid a noose for the United Kingdom and France, but for many smaller EU nations it is too late, they have lost economic control and they are now the mere vassals (read: unchained into slavery) to do the bidding of the ECB. Is that what Euro nations signed up for?
  2. Japan has its own way of dealing with the debt and economy and many fear it was never a good plan, but as they skated the edge of the abyss for over a decade people have become insensitive to the impending doom, that is not a good thing, it is merely a Japanese thing.

FXStreet (at https://www.fxstreet.com/analysis/catalyst-for-chaos-201703271520) gives us the two elements. “The BOJ has an inflation target of 2%. If Mr. Kuroda ever has the temerity to end his bond-buying scheme, borrowing costs in this bankrupt nation, which has a total debt to GDP ratio of around 600%, would have to abruptly surge over 200 basis points just to keep even with the central bank’s inflation target” as well as “If the ECB were to seriously commit to ending its QE program, fixed income investors and speculators would panic to get ahead of the removal of Draghi’s bids; and Bund yields could surge well above the rate of inflation in a very short period of time“, which shows the removal of control and the implied fact (read: implied) that Mario Draghi has no intentions of ending his QE plan. Because the devastation that the surge of Bund yields would come with a hefty invoice, one that none of the EU nations can pay, this includes the big 4. Isn’t it nice that FXStreet and other trader and broker sites are actually starting to realise that what I have been warning people against for well over 2 years? I am not the ‘prognosticator of prognosticators‘ (Punxsutawney Phil has that title), mine was merely the conservative approach to the use of a modern abacus (read: Excel) with the application of common sense. Those who were claiming me to be wrong, (a fair amount of them) are now facing their own ridicule as they hide behind slogans like ‘changes in the economy‘, ‘a mere miscommunication‘ and my favourite ‘as we trusted the analysts‘, that is my favourite as it is based on the governmental forecast numbers that have not been anywhere near correct for well over a decade in well over a dozen European nations.

So as we go back to the Bloomberg part we now see: “as a chorus rises among analysts who think they see sufficient improvement in Japan’s domestic economy for the nation’s equities to unlock themselves from the exchange rate. Before last week, the yen and Topix were both up about 3 percent this year“. Yet not long thereafter we see “After Monday’s drop, the Topix is within one and a half percentage points of erasing its gain for 2017“, so before Q1 of 2017 is done, we see that the prospective gain of 2017 is all wiped out. This does not mean that there is no room for improvement, ye the fact that Bloomberg sees Japan as the 7th worst return of the 24 developed markets implies that Japan could potentially end dead last in 2017, music to the ears of the Chinese I reckon. In that same trend I disagree with Soichiro Monji, general manager at Daiwa SB Investments Ltd, as he makes the observation “Investors should focus on fundamentals like the economy and corporate earnings“, perhaps he remembers that somewhat popular kitchen course ‘How to cook the books‘, the news made some reports and comments on Toshiba and Olympus attending those artsy classes. Or perhaps the honourable Soichiro Monji remembers Nikko Cordial Corp. which is now part of the Citigroup Inc. and no longer in the hands of the honourable Junichi Arimura who was never proven to be involved, the proven guilty party is set to Hajime Yamamoto. As the pressures for these corporations go up, the dangers of ‘fraud’ (read: unintentional misrepresentation of a company’s position) will remains a danger and will also increase the impact it has on the Japanese economic forecasts. And this impact is also felt by those into the retirement system as it lost $50 billion less than a year ago. If we accept the realistic return of $2.5 billion, which fuels nearly 30% of the elderly, that is a big chunk to lose, in addition, in 8 years’ time 24 percent of gross domestic product will go straight to welfare, which is a mighty chink out of a budget that they cannot even get close to now, the Japanese debts are too high and Europe is slowly yet surely steering in the same direction.

There is one more element in all this, Toshiba is now ‘demanding’ that its US Nuclear unit (Westinghouse) to file for bankruptcy within the next 24 hours. This is not just cutting losses, this is a move to set losses where they need to be before the financial year ends (so basically all of Westinghouse and some of Toshiba losses (within legal limits of course) in Westinghouse. This gives us the consideration that Toshiba is having a disastrous year and fancy bookkeeping is in order to keep the stakeholders and stockholders happy at the upcoming reporting waves and meetings. This on top of the Fraud that happened earlier, this fits with last week headline ‘Toshiba ponders asset sales as it fights to stay alive‘, the question is what will be sold in addition to Westinghouse, because shedding the losses alone will not do the trick, they need to sell something with profit too. Nikkei Asia Review reported: “If Toshiba fail to win the bourse’s confidence, Toshiba shares will be delisted“, Now, bad places are bad places, yet when a 6.5 trillion yen company gets delisted, it will have an effect and not just a few small ripples. For some of the consumers this will be a golden year, you will face an optional sale of 65” Toshiba displays with possibly 70% off (everything must go, yes really!) Yet, as I stated earlier, they are in a state of clever bookkeeping (not a crime), the question becomes will the holders of stock and stake accept this? I have no idea, but what is decently clear is that the impact will be felt in both the US and Europe, yet not to the degree Japan will feel it.

These are just a few of the elements as they are brought to light that Draghi’s irresponsible spending is becoming more and more of an anchor, one with a noose around the necks of the European governments. In all this it was not a week ago that the Irish independent reported ‘Banks grab €233bn in free ECB loans as Draghi warns on profits‘, with the added quote “Yesterday, ECB president Mario Draghi signalled time is running out for banks to get their house in order“. So, consider the quote. Basically, whilst the ECB knows that the banks do not have their shit in a row, they still got their hands on a quarter of a trillion Euros? How is that not irresponsible? And free loans? When did any person get a free loan? For banks it is even an act, rasher than ever before as they tend to not be held accountable. All this comes with the additional quote “The banking sector’s capacity to fully support the euro area’s recovery is curtailed by its low profitability“,  so we know that the profitability is low, which was not a surprise, it affects recovery and yes, Mario Draghi dumps Europe in even deeper debt. Are you still on the path to support his irresponsible spending?

I am not, but as I am no longer in Europe, there is not much I get to do, the only disaster for me is that I have worked the bulk of my life there and I have seen that my pension is down by will over 60%, 40% in devaluation and 20% due to an increased and uncorrected cost of living. So when the debt bomb blows, very likely before 2019, I will ended have worked pretty much my entire life, with no pension remaining. Perhaps the arts can intervene? Would it be an optional economic success if Joss Whedon launches ‘Betty the banker slayer’? #Justsaying

 

 

1 Comment

Filed under Finance, Media, Politics