Tag Archives: IMF

One economy crises a day

Yes, it is the Guardian that alerts us to: ‘World economy at risk of another financial crash, says IMF‘ (at https://www.theguardian.com/business/2018/oct/03/world-economy-at-risk-of-another-financial-crash-says-imf). So as we see: “Debt is above 2008 level and failure to reform banking system could trigger crisis“, we think that this is a small issue, but it is not, it is however not the real dangers, merely a larger factor. The quote “With global debt levels well above those at the time of the last crash in 2008, the risk remains that unregulated parts of the financial system could trigger a global panic, the Washington-based lender of last resort said” gets us a little closer to it all, yet it is the phrase ‘Washington-based lender of last resort’ that is a little more at the core of it all. This, or in a roundabout mention towards the US federal reserve is not the only part in this. It is the ECB with its quantative easing setting, now at 3.7 trillion, which in light of the Bloomberg article in 2017 (a year ago now) mentioning ‘Some ECB Members Identify 2.5 Trillion-Euro QE Limit‘ becomes a larger issue. With the US national debt at $21.5 trillion the ECB at an estimated €2.4 trillion bonds as per June ($2.7 trillion), we are going off the deep end soon enough. So as people were all in such a state that I was wrong, it would not happen again and that the economy is great. Consider that I warned about this danger several times between 2016 and the latest in May 2018 with ‘Milestones‘ (at https://lawlordtobe.com/2018/05/05/milestones/). Yet all the parties are stating that I was wrong, and several hours ago, the Guardian treats us to: “The growth of global banks such as JP Morgan and the Industrial and Commercial Bank of China to a scale beyond that seen in 2008, leading to fears that they remain “too big to fail”, also registers on the IMF’s radar“. Yes, ‘too big to fail’, or should that be ‘to big too fail‘?

So when we see Gordon Brown getting quoted with: “former UK Prime Minister Gordon Brown said last month that the world economy was “sleepwalking into a future crisis,” and risks were not being tackled now “we are in a leaderless world”“. I found his response slightly moronic as there is no leaderless world, there are merely elected officials who know that they are merely in temp positions and they are paving the way for really nice paid futures. There is a distinct difference there. And in that I am still modestly awaiting my honour degree from the London School of Economics, in a pinch one from the Wharton School of the University of Pennsylvania will do too.

So when we see both “Christine Lagarde was concerned that the total value of global debt, in both the public and private sectors, has rocketed by 60% in the decade since the financial crisis to reach an all-time high of $182tn“, as well as “the build-up made developing world governments and companies more vulnerable to higher US interest rates, which could trigger a flight of funds and destabilise their economies. “This should serve as a wake-up call,” she said“. My response will be: “No Christine, you are wrong! The entire setting of a wake-up call is already 3-4 years too late. You have been unable to nurture the ECB, keep governments awake to get spending under control and the fallout will be huge and the people get to pay for it all“. The one benefit is that too large a population will be going through two depressions wiping out all their savings soon enough and in that there is an actual chance of a new civil war that would spread all over Europe. At that point the life of any politician will be £0.02 at best, once that starts, there will be not merely a Brexit, it will herald the end of the EU and it will impact the US in a most disastrous path, not merely wiping economies out, there will be a lack of trust between the US and the EU that will surpass the distrust levels between the USA and CCCP at the height of the cold war. It will redraw global economic maps to the larger degree. That is also seen in the part when we recollect the June 23rd article called ‘They are still lying to us‘ (at https://lawlordtobe.com/2018/06/23/they-are-still-lying-to-us/). There we were treated to “Greece is once again becoming a normal country, regaining its political and financial independence“, remember that part? So how normal is that country as we are treated to ‘Greek Bank Stocks Tumble Amid Concerns Over Capital, Bad Loans’ by the Wall Street Journal a mere 8 hours ago? So when we see “Investors appear to have completely lost confidence in Greek banks,” economists at HSBC said in a research note. The four main banks— National Bank of Greece, Alpha Bank, Eurobank Ergasias and Piraeus Bank—recently submitted ambitious plans to rid themselves of more than half of their soured loans by 2021 to the banking-supervision unit of the European Central Bank, several bank officials said. Under the new plans, which the ECB is considering, the banks would commit themselves to reduce their nonperforming loans to 15%-21% of their total loans, compared with today’s levels of 40.7%-54.7%“. the article (at https://www.wsj.com/articles/greek-bank-stocks-tumble-amid-concerns-over-capital-bad-loans-1538584978) gives us a lot more, but it shows that the banks are trying to shed the bad loans in as creative ways as possible and in this the governments are as I personally see it part of the problem, they were never part of any solution and the people will get to pay for it all as they were treated last quarter to: “as elderly Greeks face losing up to €350 ($416) per month when new pension cuts are implemented as of Jan. 1, 2019“, I believe that as the Greek banks collapse to the larger degree, as the Greek banks are shedding over 50% of outstanding loans, their value would also collapse as will their prospects and the loss of confidence will only increase the pressures. All whilst payments will still be due and cannot be met as it is staged to be at present. So there is a chance that Greeks will lose 50% more than they are currently losing at present in the next quarter, so we will see that the Greeks will start the year in utter poverty and the rest of Europe is not far behind. The ECB with its badly conceived QE plan has achieved that, so when the people are given that danger and handed the loss of retirement funds, utter rage will not be far away after that.

It was one of the reasons why I kept close eyes on Salini Impregilo. Even as Europe is going proverbially down the drain Salini Impregilo has been making headway on a global scale, foremost in Saudi Arabia and as their projects are kicking off, the infrastructure needs for Saudi Arabia grow. Their needs for dash boarding, reporting and data analytics will rise over the next two years and will require more and more knowledge and infrastructure with any additional building they are assigned. The entire project of the King Abdullah Financial District (KAFD) drew it even further to the foreground, merely because the required concrete levels that can be delivered seem to be at 30%-40% of what is required soon enough. It is an opportunity for Saudi Arabia and the UAE, but also optionally for Egypt. All these shortages ignored for now, yet when we see the image from 2012 and what was required then, and we consider that Neom will require close to 15 times that, where will the concrete come from? And it is not merely the availability; it will be about the proper planning of resources. Even as Salini Impregilo is merely a larger player of several projects, they in the end all need their concrete and where will that come from? So at this rate I expect to see the delays making the forefront news from 2020 onwards. Even as some places are increasing as much as they can afford. I expect it to fall short by a larger degree soon enough and when we are introduced to the heart of the matter. Smart cities will need smart infrastructure and the wiring will be well over 20 times what the entire Boeing 787 Dreamliner fleet required and that is a lot. the skills, the training to get the amount of people fuelling this is short on every level as I see it, so as Europe collapses with the debt, Saudi Arabia gets the option to buy staff cheaply soon enough. No merely getting the knowledge they need. Yet the brain drain to that extent has never been seen before anywhere in the world and that is where the ECB will suddenly realise that the fuel required to fix any acts of stupidity in the last 10 years will no longer be available and at that point Wall Street will wake up getting to live the perfect nightmare. It is not merely that there will suddenly be a boost of economy because there is no unemployment, getting the people trained up will take decades, stopping economic growth right quick and for much too long.

And as other players open up the doors for a guaranteed decent lifestyle, the setting is changing. We see that in the European Pensions last July, a mere 2 months ago when we were given: “European pension schemes are becoming increasingly attracted to the high returns and diversification benefits offered by frontier markets” This is the setting of: ‘more developed than the least developing countries, but too small to be generally considered an emerging market‘, yet as the high returns are estimated, the risks are also higher and there seems to be the risk ‘risk premiums are more greatly affected by political, economic, and financial factors‘ that is seemingly ignored to a larger extent. We see that part when we consider both “MSCI Frontier Market Index is the most widely used benchmark for equities. However, even this is highly concentrated in certain markets and sectors – financial stocks make up 46 per cent and the top three countries make up 53 per cent“, as well as “Argentina, which makes up around 22 per cent of the index, and Vietnam, 15 per cent“. So, now consider that the very same Christine Lagarde treats us to: “The International Monetary Fund (IMF) has agreed to increase a lending package with Argentina by 7.1 billion US dollars (£5.3 billion), seeking to calm markets over the country’s ability to meet its debt amid growing economic turmoil” a mere week ago. Do you still think that I was kidding or merely trying to kick the dead donkey? I am not stating that this is the fault of Argentina. I am speculating that too many parts of Wall Street are banking on the failure of others and it opposes the setting of returns on those seeking success, in this setting the pensions will lose, optionally they will lose every time without fail and the people are left with an empty bag not worth the price of that empty bag. Do you think that people will sit down and accept that? No, they will be beyond furious and the setting of Johan de Witt and Cornelis de Witt blamed and lynched in The Hague, the rioters were never prosecuted. So, there will be enough motivation on more than one level. It is something for the current European politicians to keep in mind, because this could happen again and the setting that the people face over the next 10 years is a lot worse than the ones that the population faced then. At that point, when this starts, I truly hope that those politicians will have the option of a quick getaway out of Europe, because they will not know safety ever again in that place.

So whilst we see the distancing of politicians on all fields whilst trying to drench themselves in non-accountability, whilst they will try the path of ‘It was a miscommunication and we were given the wrong advice‘, the people will no longer accept that as the evening news. They will want their pound of flesh and a bucket of blood and the regard of the value of politicians at that point will have been degraded to zero, and their ‘post life’ Facebook profile image might optionally look similar to the painting of the brothers De Witt as it was in 1672. You might think that it is mere speculation and it is, yet the trigger is not my speculation, it is the message of economic crises after economic crises as the governments are not acting against the banks and the exploiters that hide behind ‘too big to fail‘. The people all over Europe, if not on a global setting as they are mistreated to overly optimistic futures that cannot be met and have not been met for over a decade, you see, if that was actually true debts would have been receding, would they not? The only ones that did that harshly were the Germans and they are indeed in a much better place. It is the difference between being popular and doing what needs to be done and in that Angela Merkel was not about being popular, yet now those Germans are in a much better place than most other nations. It is something for you to consider as you notice your pension is gone and you want to take it out on someone.

so whilst we consider the final line in the Guardian, which was: “Without a rise in investment economies remain vulnerable to financial stress“, we need to consider that the setting is not merely about ‘investment economies‘, it is about the setting where large corporations come in and use that setting to ‘invest’ whilst draining away the gained momentum, so the economy that once was in that stage has been drained and those momentum profits are relocated to other places where ever those boards of directors are fuelling their personal wealth accounts, leaving those nations in a post investment era that is now merely regarded as a consumer fuelled economy whilst those people never gained the better economic standing to spend the money fuelling it further.

A setting where the equilibrium of economics fails as there was never a state of balance, merely a stage of relocating available wealth and the frontier markets are no help, they are merely an optional stage not unlike the CDO issues of 2008, in my view a way to avoid taxation and move whatever they could to a non-reporting nation. Or as one source stated: “the smarter operators no longer use filthy lucre but instead employ modern financial devices such as Interest Rate Swaps (IRS) and Total Return Swaps (TRS) to evade tax“, a setting where some take a 4% loss to avoid 26% taxation, it still wins them 22% and many had to live of a bonus a lot more shallow then that and from a base amount massively smaller than the one moved away.

One crises a day, I wonder what the bad news we will get treated to next week.

#HappyWorldAnimalDay

 

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The European conglomerate of corruption

It was always going to happen, it was always going to get pushed. Yet the setting and the size of the levels of corruption is just beyond anything I could have imagined. How large corporations and politicians set hand in hand to enable corruption is just staggering and the media is assisting in this process. This is more than just Brexit. The article (at https://www.theguardian.com/politics/2018/sep/17/uk-needs-darkest-hour-in-brexit-talks-before-giving-ground), gives more than just the title ‘UK will shift Brexit stance in its ‘darkest hour’ claim EU officials‘.

Now some will throw ‘corruption’ left, right and centre, so let’s take a look at this. The dictionary gives us “dishonest or fraudulent conduct by those in power, typically involving bribery“, the problem is that most people just think it is about the money and most of the time they are correct. Yet the legal dictionary gives us: “The use of public office for private gain, Dunhaime gives us in addition the Canadian setting with: ““Corruption is understood to be the exploitation of a position of trust, typically in the public sector, in order to receive a private gain, which may or may not be financial. “Corruption is not a simple issue of right and wrong, and conditions that encourage public officials to seek out or accept corruption include (a) the expected gains from undertaking a corrupt act exceed the expected costs and (b) little weight is placed on the costs that corruption imposes on others.” We got this part from Karen Katz in the Canadian Law Journal.

In this we must also include the American version, which was discussed in In Nixon v Shrink Missouri Gove, where Justice Souter of the United States Supreme Court used these words: “Corruption is a subversion of the political process. Elected officials are influenced to act contrary to their obligations of office by the prospect of financial gain to themselves or infusions of money into their campaigns“, it is the elected officials part that matters.

When we are confronted with: ““A lot of movement is needed by the UK side before we can actually reach agreement”, said one senior diplomat. “We need a substantial change in the UK red lines still.” A second EU diplomat added: “It seems that the UK needs to have a ‘darkest hour’ moment before they will shift position. But they will have to shift their position.”” In addition, we see the fear mongering by Christine Lagarde, managing the IMF, who so far has been wrong thrice over in the last four years alone. We are given “a no-deal Brexit would deliver “reduced growth, an increase in the [budget] deficit and a depreciation of the currency“. In this we see another claim that has to be proven wrong again, all in the need of fear. You see this fear is growing. It is in part growing because the Italians are also moving on an ItaLeave (or is that iExit) path.

A path that even I did not see happening. I gave voice to the danger two years ago, but I also recognised that it was unlikely to happen, not as much as France and they pulled a rabbit named Emanuel Macron, not the Emmanuelle the European man were hoping for (see image). Yet in Italy it did go a lot further And now that Metteo Salvini is the elected group, the powers of Wall Street are getting scared, they are contemplating the end of their long reign of exploitation, so this wave is perhaps the last one, which makes the subversion of British Freedom even more essential. And in this British politicians are helping out, because London has been scared by all the fearmongering and Sadiq Khan is now worried for his town. He is shouting on the need for a second referendum. Yet, I want to set a few parts as well. The first is that the ECB gets disbanded, it is not transparent, it has taken liberties that are beyond acceptable and whenever the G30 bank elite comes to mention it had been avoided again and again. That is the setting towards what I regard to be of levels of corruption that are beyond acceptable. I personally want to add the right of targeted killing that means that any given links on politicians and the banks and large investors that is regarded to be unacceptable comes with an automated death sentence. I wonder how many politicians will get worried, they claim they will not be, but one knock on their door with the mention of the Battersea Power Station with the quote: “In an interview with the Guardian, Anwar, who was released from prison after the opposition won power for the first time in Malaysia, said the previous government had used the savings of ordinary people to cover up the multibillion-dollar embezzlement scandal at 1MDB, a state investment fund.“, and when we consider the news merely 5 days ago (source: the Guardian) with: “Peter Bingle used his longstanding relationship with Ravi Govindia, the leader of the London borough of Wandsworth, in attempts to circumvent council officials he believed were being obstructive to his clients, including over the size of payments due to public projects“, I think that my case has been decently made. In this we will hunt down and give the fear mongers the option to either show clear evidence or get executed. Is that not an easy way to get to the truth of the matter?

This reflects on Europe and the ECB, because their laughter dies down quite quickly at the point when the first ‘accidental’ fatalities hit the newsreels, after that them bitches be crying. As for the hard times. Yes, the UK would always get a few years of hardship after Brexit. Anyone stating that this is not true is lying to you. The issue becomes that after Brexit, the careless spending will no longer get pushed onto UK budgets, which also means that debts can be better dealt with quicker and also to a larger extent. That also means that as debts go down, as infrastructure issues are dealt with, it will have much better chance when the UK is not dragged down through 3 trillion stupid mistakes by Mario Draghi. OK, that was not quite true, the first Trillion we get, but when it failed he decided to add two trillion to that debt. That is the issue that the UK is confronted with and there is also the bigger crux. You see, the BBC reported last month (at https://www.bbc.co.uk/news/business-45247631) that a charity has called for tougher regulation of bailiffs, as it calculated that households have fallen behind on essential bills by £18.9bn. Staying in the EU does not fix that, the bills are still due, yet when the economy betters something can be done and that is what Europe does not want, they want that the lifestyle remains equal for all, looking at Sweden alone we see that this future is fictive and the EU is draining all funds with their gravy trains as well, making matters worse. If there was only someone who had been able to hold the ECB accountable on some of their actions, but alas, there was no option for that and there we see the one truth that Nigel Farage was correct in. If the Brits all unite for a better Britain it will work. And that is not merely those born there, anyone living in the UK, being a resident or citizen has the best interest that growing the UK is the only path that works.

The entire charity matter is also a path that matters, because it impacts life in the UK. We can agree that bills have to be paid for, but that is no longer an option as the pockets of big business are filled through exploitation and that cash is moved out of the UK through perfectly legal and creative bookkeeping.  So when we see: “Citizens Advice said it was getting a call from someone needing help owing to bailiffs every three minutes. It is calling for a bailiffs regulator in England and Wales. It points to a case of an elderly couple who owed £700 in council tax who are now afraid to open their front door after bailiffs used aggressive tactics and threatened to call in the police.” We need a much better system that allows for the return to better values and pushing out exploitative business is a requirement, yet their exploitative options are protected by the EU and Strasbourg, who want the status quo and will remain in denial for another decade, whilst the required actions are already 5 years too late. Here to we see the need to go it alone for the UK and let’s not forget that Italy is already moving on that path, no matter what happens now, when Italy gets out before the UK, the options of the UK will diminish even more, and that is still on the table, even as we see the news with “‘We Want to Change Things from Within.’ Italy’s Matteo Salvini on His Goal to Reshape Europe“, we see carefully scripted answers in regards to the Italian exit, yet the EU budget fights are implying that this path remains open to Matteo Salvini. The Financial Times (at https://www.ft.com/content/cad84ef6-b10d-11e8-99ca-68cf89602132) gave us: “But others fear a spat with Rome that could spur support for Mr Salvini in European Parliament elections in May next year and re-energise his party’s calls for a eurozone exit.” That is the dilemma that all these Europeans now face, because when the UK is officially out, the Italian exit will collapse the Euro as well as the EU. A setting that was always going to happen (at some point), yet the order in how it happens will also set the stage on how it impacts the UK and my personal view is the quicker that they are out, the better their position will be and there we see the stage of all these fearmongering players, every month less is another year of pension gone and a more medial lifestyle for those people who want their golden parachute and their golden swimming pool. That whilst 99.99934%of the people in the UK (roughly) will never ever have either.

So even as he Financial Times gives us the Top Marginal personal income tax for employees , we see that Sweden heads it and the UK is a lot below that, whilst Italy is two places below that part and Italy ‘flat tax’ is dead last. Now if we could have seen another chart that includes the levels of tax avoidance (which is perfectly legal) we could clearly see that the UK will never get the amount professed in that chart. There are too many loopholes and many nations use them, the EU gave even more options there. This gets us to 2016, when we were introduced to: “On 28 January 2016 the Commission presented its proposal for an Anti-Tax Avoidance Directive as part of the Anti-Tax Avoidance Package. On 20 June 2016 the Council adopted the Directive (EU) 2016/1164 laying down rules against tax avoidance practices that directly affect the functioning of the internal market“, which sounds awesome, was it not that 8 months later, we were treated to: “Huge sums are being lost due to tax evasion and avoidance. Estimates go up to € 1 trillion“. The mere setting of dates that were not clearly added to the page and other matters missed, gives us the uselessness setting of the EU, moreover those 8 months, the people involved, what did they achieve and how much did they get paid? It is my personal opinion, yet ec.europe.eu is filled with blunders and misgivings of a nature that should have gotten a truckload of these people fired and now they all band together, because when the UK leaves their party ends and that scares them. It is not that they merely try, it is that they for the most fail again and again.

That whilst IBM gave us the opposite setting for Brexit only a month ago with: The problem, though, is that there are some signs that Brexit isn’t going to be as bad as once feared – and may, in fact, turn into a net positive for the UK, and tech giant IBM might play an outsized role in some of the developing factors. Here’s why:

  • Foreign Investment is Growing
  • Emerging Technology Solving Trade Issues
  • Exports Climbing and
  • US Uncertainty Taking a Toll

These are all matters that work for the UK over time and that is why these levels off fearmongering anger me so and I personally would want retaliation against those trying to prolong their futures through fearmongering.

All issues ignored by the media to a much larger degree and whilst they emphasize on people like Lord Adonis, we need to make certain that those doing so are given the spotlight to the larger degree after the proof is shown, we will not allow for a simple ‘sorry’ we will set the stage for draconian change to their non-journalistic path. In the first in setting these publications as no longer to be regarded as newspapers, especially publications like the Daily Mail. They can publish of course, we would never hold their right of expression, but no longer in a 0% setting, they will become vat accountable for the 20% that any magazine and glossy gossip mag is set to, the playing field should be equal, should it not? I wonder how long it takes for them to feel that 20% pinch (good for the UK coffers) and when they start passing that onto the consumers, do you think that they will continue choosing that medium, or will they consider reading an actual newspaper?

All elements of corruption. The setting of ‘exploitation of a position of trust‘ is seen with newspapers, title of status, positions of wealth and managing policies as well as the facilitation and nepotism on smoothing paths for buildings. There is too much going on and it is hurting the UK immensely. We can argue that the EU has allowed corruption levels that we had not seen since ancient Rome and when we consider who is heading the ECB, we see and optional coincidence of correlation.

The largest danger is not when the UK gets out, but when the fear mongers win and Matteo Salvini succeeds, because at that point the UK will face close to a decade of additional hardship. Are you ready for that? Are you in the UK willing to forgo heating in the winters of 2020, 2021, 2022, 2023? Consider that, because the debt of the people adding to £18.9bn implies that they have to forgo electricity or heating; what would you chose?

 

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A haircut before the guillotine

That is how we sometimes see life. We are all dressed up, all ready, smooth shave and a decent look, all on route to the main event where we are the guest of honour at a dinner party hosted by Joseph-Ignace Guillotin. Yes, we are the person on the chopping block. When death is all you look forward to, the way getting there will mean the most to anyone.

So out comes the master of coiffure, to make sure that the shave and the haircut were done to levels of excellence that you never considered before. Master tailor Marc de Luca will come and see you to make sure that the suit is one that Versace will look at with utter envy, the people on Saville Row will look with utter amazement on just how perfect a suit can be, because you must look your best on route to that once in a life time dinner party with Joseph-Ignace Guillotin, all the elements mattered the most on this one day.

So there is the setting you see when we consider ‘EU says Greece can ‘finally turn the page’ as bailout ends‘. The article (at https://www.theguardian.com/world/2018/aug/20/eu-greece-bailout-ends-pierre-moscovici) gives us “Greece has turned the page to become “a normal” member of the single currency“. Yes in that regard it is nice to know that a mental health setting of ignorance when it comes to the economy, is still riding high with too many individuals. I mentioned it over 3 years ago in the article ‘Dress rehearsal (part 1)‘ (at https://lawlordtobe.com/2015/07/01/dress-rehearsal-part-1/), where I stated ““Greece would face an unsustainable level of debt by 2030 even if it signs up to the full package of tax and spending reforms demanded of it, according to unpublished documents compiled by its three main creditors“, the reason that I call it questionable, is because Greece is what I call a 3G nation, which means it will take three generations for this debt to become close to manageable. So, with that I imply that the debt is still a massive form of pressure in 2061, there is no escaping it“. That part we now see with “Greece has the highest government debt in the EU, 177% of gross domestic product, and is forecast to be repaying loans until 2060“. WOW! I was off by one year and that was me using my fingers and an abacus over three years ago. Now we see that it will be all done by 2060, which is actually not a certainty. I took a few setbacks in consideration that are likely to be missing here, so considering that this started 8 years ago, we see that in the end it will take another 42 years, making my ‘three generation‘ prediction spot on. Yet the good news is not yet done. When we consider that the debt is 177% of gross domestic product, the fact that youth unemployment remains at 43.6%, as well as a few setbacks, there is merely one stupid act of starting another bonds plan and it all goes south really really fast.

The first is that with “Athens will face more exacting checks than any other Eurozone member, so Brussels can monitor whether the government’s budgets are in line with EU stability and growth targets” Greece will still be bound by some factors. The setting is a given if Greece decided to try the Goldman Sachs strategy again, the future will start to look extremely dim again at that point, with little to no hope on resolving it ever. There will always be politicians that play the fast and loose card whenever they are in a pickle, which will soon thereafter become the ‘fast and lose‘ scenario, especially for the Greek population.

Even now we see the quote: “Many analysts believe it will take a decade before Greece returns to pre-crisis living standards following a slump in which its economy contracted by 25% and unemployment peaked at 28%“, I am not convinced that it will be that quick. It might be if serious investors can be found to pump up the Greek economy like a Google space, an Apple hub and an IBM data centre. Those steps will be a turn for the good for Greece, but without a really large player opening the field, Greece keeps on lagging behind and a decade will not be enough to set the economy back on track to the pre-crises degree stated. Furthermore, there is the consideration of “levels of extreme poverty jumped. The population has fallen by 3% because of emigration and a lower birth rate“, you see, the levels of extreme poverty also slows the recovery setting and the loss of population will not merely mean that there are less jobs required, it also means that a continuation of certain aspects can no longer happen. So the setting of parent to child implies that more and more businesses die over time lowering the GDP further, which in turn shoves the debt up by 5%-10% more than previous. So it is not the percentage, it is the €336,900,000,000 that is due its interest and that amount is not shifting merely due to the shifting GDP percentage. It is rising because 336 billion implies 6-9 billion euro of interest a year and with a population of less than 11 million, whilst we get the slightly over enthusiastic “By 2023 unemployment is forecast to fall to 14%“, yes, I’ll accept that when I see it. You see, last October it was 20.7 percent. This now give us that close to 2.5 million Greeks are not paying tax. So exactly how are they not merely getting the infrastructure paid for, but in addition to that pay for the 6-9 billion in annual interest? From my point of view the picture we are given is a rosy coloured setting of ‘Bull dung and grapes’, at which point the grapes are not that appetising anymore.

The final part is seen with “As a condition of getting debt relief, Athens agreed to the EU’s demand to run a budget surplus of 3.5% of GDP until 2022 and thereafter 2%. However, the International Monetary Fund, a co-funder of the bailouts, has long argued this goal is too onerous for a country that has endured years of belt-tightening“. That shows part of the imbalance, or merely the gross injustice to the Greek population. There is close to no way to live with the ‘a budget surplus of 3.5% of GDP until 2022‘, unless you cook the books that is, which is a purely personal speculated option. It merely seems more than an impossible task and agreeing towards demands that are unrealistic is just not acceptable and utterly inhumane.

Forbes is on my side in this. The article (at https://www.forbes.com/sites/francescoppola/2018/08/20/lessons-for-the-eurozone-from-the-greek-debt-crisis) gives us: “Fiscal austerity is on the menu for generations to come. Furthermore, if GDP takes a nosedive – as both business cycle theory and economic history tell us is almost certain to happen at some point during that time – further cuts will be necessary to meet primary surplus targets. In the light of this, the IMF has expressed serious reservation about the sustainability of Greek finances. If it is right, then the Greek crisis is not ended. It will be back with a vengeance in a decade or so“, I actually believe that ‘a decade or so‘, is a little optimistic. When we correct for Murphy (anything that can go wrong will go wrong), the tie line will shove the entire situation to the foreground by the year 2025.

The article is a really good read, mainly because it gives us in short the history on how it happened, which was essential in all this, because the danger of “in 2009 the Greek government lied about the true state of its finances, and that the pre-crisis boom had resulted in a fiscal deficit of 15% of GDP and debt/GDP of well over 100%” is a setting that is not unlikely to return in the 2023-2025 years, for a few reasons, especially when the Greeks are set in a stage of what is humanly called to be in a stage ‘without a pot to piss in‘. there will be overreactions and that is when things go from bad to worse and in that time, when there is still 35 years to go, a lot of people will re-enter new (read: even more harsh) levels of austerity.

So even when we think that the bailouts have ended, we also need to consider that this is academically correct, yet the truth is that we need to realise that in a little less than 16 months “the expensive debt to the International Monetary Fund, some 2.6 billion euros of which is due by the end of 2019” (source: Bloomberg), apart from the interest, posts like the maturing bonds come out to play and that is in this case well over 2.6 billion, also we need to consider ‘the interest Greece has to pay on bonds is still too high at about 4.2 percent‘, there we see that the additional pressures that Greece gets from refinancing all those bonds come at a huge cost. In addition to that part, we also need to notice ‘National Bank of Greece issued international bonds (XS1698932925) with a 2.75% coupon for EUR 750.0m maturing in 2020‘, so where will that money be coming from? We accept that seven hundred and fifty million Euros is not a lot when you say it fast, but in lieu of the outstanding debts, the budget surplus as well as bond maturities, all that whilst the economy is not on track and will not be anywhere near that in 2020, my prediction of a new stage of defaulting by 2025 might have been slightly too optimistic.

Personally I really hope that we can find a decent solution for Greece, a solution that allows for a growing economy because Greece is an awesome place and for the most Greeks are awesome (unless you’re German at that point you’re on your own). The good news is not there yet and I personally believe that some players are still stacking the cards in a way that suits them and not Greece. I am referring to the message: ‘S&P Global Ratings upgrades Foreign Currency LT credit rating of National Bank of Greece to “B-” from “CCC+”; outlook stable‘. It was given to the people on June 6th 2018. I personally do not believe it to be correct or better stated ‘justified’. Bloomberg gave us those goods an hour ago with: ‘Greek Bad Loans Are a Drag Even after Crisis Shrank Bank Sector‘. Basically an hour ago we were treated to “the problem she saw 12 years ago lingers on — Greece’s banks are still weighed down by bad loans. That’s making them cautious about new lending, which the country’s cratered economy needs to grow again after its European bailout ended on August 20th“. Basically hidden ghosts still rock the financial cadaver of Greece and there is more to come. Do you really think that ‘stable’ is the correct word? When we consider the S&P definitions we end up getting “An obligation rated ‘B’ is more vulnerable to non-payment than obligations rated ‘BB’, but the obligor currently has the capacity to meet its financial commitments on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitments on the obligation“, if the entire setting relies on ‘currently‘ I end up with the consideration that this could revert to a more negative stage by years end and then we see that the costs will increase whilst the maintenance of a budget surplus is close to a nil percent possibility at that point.

If we see that this is going on and the stage is set in several ways against Greece, who was the message ‘Greece can ‘finally turn the page’‘ for? Was it for the EU and European, was it for Greece (as an optional setting of false hope) or was this as the starting signal for Wall Street? In my mind the question becomes, who exactly was The European commissioner for economic and financial affairs, Pierre Moscovici catering for? Perhaps it is less complicated, perhaps he was merely acting as the maître des cérémonies for Joseph-Ignace Guillotin. To set the stage, where in the old days, executions by guillotine were a popular form of entertainment that attracted great crowds of spectators (their version of the Roman bread and games). Perhaps that is what is needed in Europe and for now the Greek government is unaware that their status has been elevated from underdog to the proverbial ‘guest of honour’.

Yet in all this, we need to be more then sceptical, there is much doubt and most of it based on common sense. We need to realise that the setting of Greece remains close to unacceptable, these levels of austerity will have to continue not for a decade, but for several decades, mainly because until the economy gets an actual boost, the options of budget surplus seem to be so unrealistic that whatever was signed was basically signed under duress. If the CIA and others stopped torturing a terrorist because the issue was too inhumane and the intelligence was never reliable, why would you transfer such levels of inhumane economic pressure to a European ally?

In the entire Greek economic setting that one part never ever made any sense to me.

 

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Chaos, benefit or danger?

As an aspiring agent of chaos, I have always been in favour of chaos. There are two quotes from the movie The Dark knight (2008) that are important here. They seem meaningless, but they are not. Consider the events surrounding Brexit. The IMF, Wall Street, the ECB all desperate to scheme through fear mongering, and they are even at it today, all so eager to keep their status quo in place. So, the first quote is: “Y’know they’re schemers. Schemers trying to control their little worlds. I try to show the schemers how pathetic their attempts to control things really are“, that is only partially true. The evidence is all around us on how Wall Street is still largely in control. I am not giving you some conspiracy theory on how they did one or the other. The news as we read it in nearly every decent newspaper gives you that evidence and they call it ‘policy’. It is fun to make a second movie reference, especially as it also included Christian Bale. The movie the Big Short (2015) shows clearly the facts of the subprime mortgage issues that unfolded and became a reality. It was based on the book by Michael Lewis called The Big Short: Inside the Doomsday Machine. I was sceptic at first, not because of the actors involved. Yet the notion that it involved Steve Carell and Ryan Gosling made me a little wary. In the end, I saw a movie that showed a Steve Carell who shows us how brilliant he actually is, more than merely a really good comedian. Even as he had already worked together with his prospective son in law (a Crazy, Stupid, Love pun), as the narrator in part of the movie Ryan Gosling gives it that extra, that part that will make you remember the movie long after you have seen it. The movie ends up being not merely an entertainer, the movie becomes an educator almost to the degree that the book was. Together with Margin Call and Inside Job you get a real grasp of the economic wasteland that 2008 created.

This part is truly important, because when you consider those facts and the mere realisation that the US, EU and many other places still have no proper protective laws in place is just scary.

Part of this is seen in the McKinsey report on June 5th 2018 where we see: “That the effects of Pillar 2 add-ons and capital buffers should result in two widely different assessments, of €56 billion and €2.2 billion, is notable, highlighting the room for national discretion during implementation. In Sweden and Norway, for example, supervisors are reflecting higher risk weights for mortgage loans in Pillar 2 capital requirements. Some analysts are therefore expecting that these add-ons will be removed, given that they are already captured by an internal model floor for mortgages under Pillar 1“, the part ‘expecting that these add-ons will be removed‘ is the danger here. You see, Bloomberg reported in January 2018 (at https://www.bloomberg.com/news/articles/2018-01-25/banks-prepare-for-battle-as-europe-readies-rules-to-cut-risk), “banks are uncertain about how Pillar 2 capital requirements — demands set over and above legal minimums — will be imposed“, the statement is odd as they were already there in Basel 2, so why is there now ‘miscommunication’? (Perhaps ‘ignorance through intentional non-comprehension‘ might be a better term).

When we look at those two pillars we see:

First Pillar: Minimum Capital Requirement
The first pillar Minimum Capital Requirement is mainly for total risk including the credit risk, market risk as well as Operational Risk.

Second Pillar: Supervisory Review Process
The second pillar i.e. Supervisory Review Process is basically intended to ensure that the banks have adequate capital to support all the risks associated in their businesses.

You see, we have seen the game of CDO’s, derivatives in many forms, sometimes being ‘diplomatically’ called Bespoke Tranche Opportunities nowadays, the Big Short mentions it at the very end. Consider that this was a 2015 movie, and Bloomberg gives us last August: “Pacific Investment Management Co., Goldman Sachs Asset Management, Columbia Threadneedle and others are snatching up bonds tied to subprime mortgages and other home loans made before the housing crisis, while selling speculative-grade company debt. They say junk yields are too low for the risk investors are taking, and securities backed by mortgages — which have already gained as much as 6.9 percent this year according to Bank of America Corp. data — offer higher potential returns given the risk“, it implies that some could get rich by taking risk on junk. So when that collapses, considering Basel 3 pillar one and two, what are the chances that pillar one, the operational side does not include such events as it is not ‘operational‘ but based on non-operational settings? Where is the risk then? In addition, when we see that now, the banks are expected to ‘expecting that these add-ons will be removed‘ from consideration, how dangerous is the balance at that point? Did we not learn enough in the years 2008-2011? Why are we allowing these gambles leaving us with nothing twice over? Why are there no clear laws banning credit swaps and BTO’s? It might sound nice and soundbyte nice when the pope makes such a claim, yet it is still legally an option, so why was this not halted? The fact that the book and movie mention this gives rise to the fact that Wall Street knew for many years, yet they let it slide. So what happens when the people DEMAND from their president that the banks will no longer bailout banks involved in that? What happens when Wall Street faces the rage of the people and there is no continuance or replay of the Emergency Economic Stabilization Act of 2008? What happens when the people have had enough and in honour of the American Civil War (1861 to 1865) decide on the American Wall Street Clambake of (20xx) where 150 million Americans decide to lynch the 63,779 bankers on Wall Street in public, would that change a few noses to be more morally inclined (of those still alive that is)?

Agustin Carstens gives us a more diplomatic view in the Financial Times (at https://www.ft.com/content/720efbe2-75fa-11e8-a8c4-408cfba4327c) where we see “the future is not pre-ordained. The right policies can help. While the path ahead is a narrow one, it can be taken. We should seize the day to rebalance the policy mix and sustain the current expansion. That means regaining room for policy manoeuvre and reviving the flagging efforts to implement structural policies. Let’s use macroprudential tools to strengthen resilience where financial vulnerabilities are building up. Let’s ensure that public finances are on a sound footing“, yet he phrases it better, but as I stated in the beginning, I am an aspiring agent of chaos after all. This gets me to the second quote in the Dark Knight. It is applicable in two settings, the one we saw and the one we are about to see. The quote: “You know what I noticed? Nobody panics when things go according to plan. Even when the plan is horrifying. If tomorrow I told the press that, like, a gang-banger would get shot, or a truckload of soldiers will be blown up, nobody panics. Because it’s all part of the plan. But when I say that one little old mayor will die, well then everybody loses their minds!

This gets me to the situation where Israel made a choice to speak, but from where I am sitting, it seems like the wrong voice to raise and it is the setting of a dangerous strategy that could backfire in ways that we cannot perceive as yet.

You see, on Wednesday afternoon Netanyahu tweeted out a video praising the Iranian soccer team for its performance in the World Cup against Portugal with “The Iranian team just did the impossible. To the Iranian people I say: You showed courage on the playing field, and today you showed the same courage in the streets of Iran.

For soccer fans it was a remarkable day, most of them did not give Iran any chance of winning, not against Morocco, who has a team that can stand up to the likes of Spain, a nation devoted to soccer, so for Iran to win, that was a really big thing. Now consider the words ‘today you showed the same courage in the streets of Iran‘. This is a reference to the Iranian currency plunging to the depths of the Mariana trench, having a massive impact on the Iranian people. ABC gave us (at http://www.abc.net.au/news/2018-06-26/thousands-protest-in-iran-over-failing-economy/9909184) ‘Thousands protest in Iran over failing economy, forcing closure of Tehran’s Grand Bazaar‘, now we can acknowledge the event, yet from the lips of PM Benjamin Netanyahu, or in this one particular case ‘PM Be not a Yahoo‘ it seems to give notification that revolution needs to be on their mind. The problems is even as they currently have a lame duck in place (President Hassan Rouhani), who is merely accepted as the temporary voice of the Clerical and Military power in Iran. Such a revolution would merely empower the military and give rise to the Clerical side to end up supporting the military

Yet the setting in the frame whilst the nuclear negotiations are still going on, Iran is under pressure. The danger we are now exposed to is that the Iranian clerics and military will not place another ‘liberal’ minded person for another 4 years, so the danger of having some short minded version of former president Ahmadinejad on steroids as the next president of Iran is not out of the question. No one can tell whether the clerics and military have prepared the next one, but to get one in their years early tends to push chaos to a level of devastation and this is not the time to make this happen. So basically we see the feeding towards ‘then everybody loses their minds!‘ Could I be wrong?

Off course I can, yet the data and events seeping towards a more extreme new president was always coming, the acceleration in Saudi Arabia and the Iranian acts in Yemen clearly point that way. We see in some sources phrases like “Iranian Foreign Ministry spokesman Bahram Qasemi told a news conference that the ongoing offensive on Hodeidah has put the country on the brink of famine“, from my point of view, the Iranians achieved that last year with the aid of a tool like Hezbollah and pointing the Houthi rebels to cause maximum damage to the people of Yemen. So when we see: “The international organizations and the UN should make an effort to end the aggression against the oppressed Yemeni people“, the UN knows perfectly well that delivered missiles firing from Houthi positions into civilian targets in Saudi Arabia made that a non-option right of the bat. Yet, we must not forget that Foreign Ministry Spokesman Bahram Qassemi played his part very well, the main players are not new to this game and merely waiving their options away is not something the UN is willing to do, in that regard we all need time to get anything proper in place and Israel just changed that instance to some degree. Chaos in Tehran can unfold in ways that cannot be predicted because several players behind the scenes cannot be identified. Yes, the top two (Ali Khamenei and Qasem Soleimani) are known, yet their inner circle is not completely known and now we are in an upcoming impasse where we could be forced to wait until their moves are done, that whilst Iran is nowhere near on the ropes, so they have what might be seen as the field advantage for a little while and that is where chaos can go unbridled and cause actual long term damage.

There is enough evidence of that in Syria, Libya, Egypt and Yemen, none coming with short term solutions to get some actual productive. the Egyptian $500 million education reform bill is only two months old and took some time to get it all in the right shape. This is long term thinking, a true working strategy where the next generation will be more educated giving additional options for long term dialogues and giving a nation options to grow economically. Now consider that any prospective improvement is now optionally off the table for Iran until 2027. This gives a long term danger to sparks evolving in a very different form of chaos, one that no one can predict how it will unfold in the end. That is the game at present. Now consider such an event happening whilst Europe and the US go through another 2008 event, something that several predict and most seem to agree that it is pretty much unavoidable.

Almost like some used to say that the Great War (1914-1918) was the war to end all wars and we were treated to a very different reality in 1938. In that year we got the very first issue of Superman and Time magazine elected Adolf Hitler as ‘Man of the Year‘, do you remember how that ended, apparently all remaining 9 million Israeli’s definitely do!

Chaos can be good, it allows for true change. In this the quote: “It’s like knocking over an ant-hill. Every new generation gets stronger, the ant-hill gets redesigned, made better” is appropriate, yet the danger is that those ants have access to an arsenal of ‘solutions’ that can make a real dent ensuring long term chaos, that is why the Israeli push is not the beneficial push that the PM thought it could be, so tweeting that video was slightly too rash (for more than one reason). In that the earlier setting where we let the banks completely collapse might be the better options (if we had to choose between the two). In the second part, the Iranian debacle is also set on how China will react. Some are speculating that Iran wants to offer an oil solution if China is the saviour that they hope it will be. I cannot tell, I never looked at any data or papers giving real light to one path towards the other path. For china it might be an option, especially after the vitriolic actions against Huawei and ZTE, yet in the end that market is for now not large enough to cause truest concern, not whilst they have plenty of options to grow 5G in Europe with a population twice the size of the US and an overwhelming desire of the local populations in western Europe and Scandinavia to adopt it, there is enough for China to focus on, they might love to help out Iran, just to spite the US and to get under-priced oil, yet that is a separate play from what is on offer.

Scandinavia is also interesting as it allows Huawei to reach the bulk of Swedes through their three cities (Stockholm, Goteborg and Malmo). As Malmo is merely a bridge crossing away from Denmark’s capital Copenhagen a growth path for Huawei could show others soon thereafter what the rest is missing out on and with Swedish Telia on board, the setting for both Denmark and Norway becomes a reality. Even as the US is all up in arms, Reuters gave us merely 4 months ago on Huawei being “the company in prime position to lead the global race for next-generation 5G networks despite U.S. allegations it poses a security threat“. So even as we see newscasts like ‘Sprint, T-Mobile merger will generate 5G powerhouse, cut costs for users‘, that setting is definitely not a given. You see the chaos is not in getting the 5G, the chaos comes from 5G as governments and large telecom companies are nowhere near dealing with the setting that cyber threats can become. this is not merely phishing, scamming or abducting accounts, this is the realistic danger that for the first two years 5G facilitators become start points of all kinds of chaos though the facilitation of non-calibrated systems, architecture lacking equilibrium. the difference between ‘a holistic approach towards DDoS attacks and 5G networks, rather than relying on outdated defence tactics‘ (source: Wireless Week). Non-repudiation would have been a quality first step in that, in a time when too many are relying on authentication, we seem to forget that it remains relatively easy to get a ‘false positive’. Please do not take my word for that, merely visit 675 N Randolph St, Arlington, VA USA (address of DARPA) and ask Dr. Steven H. Walker if you can take a look at a massive archive of false positives that their previous research gave in all kinds of fields, it is an impressive read to get your fingers on and you’ll die of old age before you even get through 30% of the materials, even if you start as a teenager.

That was the ball game from the start. A mere setting of order versus chaos; a simple setting where order could have prevailed, if not for the economic setting of greed and speed over quality. In that 5G does not open up the super highway of data, it merely opened `15 highways next to the one we cannot even properly control now and we end getting 16 highways flooding us with false positives, chaos on a new level and not chaos of the good kind. It will be the wet dream of organised crime for close to a decade to come and the larger players remain is presented denial.

For that you merely have to search Google and use the search term “Telstra non-repudiation“, you get ‘Mobile Authenticator’, which states to be ‘Enhanced non-repudiation’. These two are not the same! Now, important that this is not anti-Telstra, the bulk of all systems on a global level have these issues. My issue in this particular case is “reduce the costs associated with robust user authentication for large populations of staff or customers accessing your online service” Non-repudiation is never cheaper (for now) and in the end the flaws are not obvious, yet they are there and it takes one sloppy moment to give access. Computer world gave us last year the article by Evan Schuman involved here is Steven Sprague is the CEO of Rivetz, this project that comes the from National Institute of Standards and Technology’s National Cybersecurity Center of Excellence (yes, it’s a mouth full) is giving us: ““Software code is easily altered, and memory can be copied,” he said. “The [whole] software process can be observed. You simply cannot hide a secret in the operating system. It’s time to finally do it correctly, with hardened keys within the device.”“. It is one step stronger, yet this is still not non-repudiation, where the setting is that you and only you could have done the deed. Some go for the ‘Dual biometrics may just be the authentication answer we need‘, yet that is still ways away and in the end on the mobile path not really a good solution. One player called Sensory is making positive headway, yet they are not there yet and time ran out close to two years ago to get something really good on the roadmap. So even as we see that authentication solutions are there, in the immediate setting where mobiles can now move billions, the game is now and has always been non-repudiation. At present we move over a billion dollars a day via mobiles and ecommerce, when we consider that this push is going to fivefold in the next decade, do you really think that authentication is going to get the job done securely and on time before the big bank download begins?

Is there a connection?

Consider Bank Melli Iran: $45.5 billion, Bank Mellat: $39.7 billion and Bank Saderat Iran: $39.3 billion. Merely three banks with a few billions. Now consider the following settings. In the first we get “While the standards of the Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) are widely followed around the world, they are not enforced in Iran“, a mere setting of rules. Now we consider the resetting of Basel 3 pillars one and two, with the support from several financial sources giving us “The Central Bank of Iran has played a significant and effective role in implementing Basel II and III standards in the banking system“. Now we take those elements and add 5G, whilst non-repudiation is non-existent and some devious entrepreneurs help themselves to the $125 billion of cream. This fat cat, can we call them ‘organised cats’, could potentially use the 5G debacle to remain anonymous and sail away on their new yacht (by the way, if you guys pull that off, please remember my AU$20,000,000 consultancy fee through Riyadh, so I can use the legally available tax avoidance rules).

Do you still think I am joking?

We have heard all kinds of noise concerning security, so in addition to that, one source (Internet of business dot com) gives us “5G will enable IoT applications such as autonomous vehicles, healthcare solutions, and robotics. But the technology also poses a much larger security risk than the 2G, 3G, and 4G networks that came before it. Why is this?
Significantly, 5G represents an overhaul in the way that networks are run and managed. In contrast to the hardware-based networks of the past, the technology takes advantage of virtualisation and cloud systems, leaving it more vulnerable to breaches if not properly secured.
” There we see the connection, proclamation of proper security are at the foundation of it, whilst the systems are all about Authentication and not about clear non-repudiation, in an age where mobile hi-jacking is a reality of life, the authentications in place are often too easily avoided. In the time a person walks to the bathroom a highly jacked phone can now set up the vibe of 25 million transactions, all completed in 52 seconds, most likely at that point, the person going to the toilet barely sat down for the event to release, that’s what it took to set the Iranian coffers to ’empty’. Now, many will not react that it happens to Iran, yet the newly elected extremist will not let that slide; and what happens when it is not Iran, but another nation? What happens when we realise too late that our own banks are not up to scrap?

Only this month did we see: “Security breaches continue to be an ever-present threat for financial institutions. Defending against attacks and authenticating customers without creating undue friction is something financial institutions have not yet completely solved. Consumers seem to be willing to use more secure methods to access their accounts, but not necessarily give up on ease and speed of transacting“, and in addition ““Attacks haven’t died down,” said Will Lasala, director of security solutions at OneSpan, a cybersecurity firm. “The amount of loss is through the roof. Stopping losses and the need to analyze what’s happening in those transactions is important.”“. That was this month, whilst the FDIC (Federal Deposit Insurance Corporation) treated all willing to learn to “Internet connections establish a pathway for hackers and thieves to access and steal sensitive personal information, including the banking records that many customers store on their home computers. Phishing, pharming, spyware, malware, worms, nimdas, viruses, buffer overflows, and spam—all relatively recent entries to our vocabulary—have raised electronic/Internet banking risk levels to new highs, and financial institutions have had to increase security measures to address those risks“, that was in 2005, thirteen years ago. Welcome to the age of ‘if it costs too much, sit on the solution for now‘, you see, not much headway was made (clearly nowhere near enough) and in that result we are now on the edge of 5G where the speed and issues are driven upwards at least tenfold, so that is where non-repudiation was a solution, if only someone had gotten us there. It was a risk covered in my University IT classes in 2010, so it is not like there was no awareness, merely a path that was seen by too many decision makers as too unprofitable to consider.

Now we see chaos in its proper light. Chaos could have set the stage properly, if they only allowed the banks to collapse in 2008, yet that did not happen and some players are up to their ‘old’ tricks in a new jacket whilst the people are more likely than not having to pay for it all again.

 

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They are still lying to us

There is a piece that the Guardian gave us less than 12 hours ago. The title ‘Greece ‘turning a page’ as Eurozone agrees deal to end financial crisis‘ should worry you. You are getting played! The article (at https://www.theguardian.com/world/2018/jun/22/eurozone-greece-financial-crisis-deal) is giving a dangerous situation as it is downplayed on nearly every level. Now, to set the stage, we need to understand that government budgets are complex. No one is denying it. Yet, what is complex about: “Eurozone member states reached an agreement on the final elements of a plan to make its massive debt pile more manageable, ending an eight-year bailout programme“, can you tell me that? You see in the heart of this is ‘its massive debt pile more manageable‘, we all see that. Yet do we understand it?  €328 billion, the interest on that small sucker is well over €500 a second! The debt is around 180% of GDP, it was 178% last year. These are issues that matter, because it gives Greece no options. Then the Guardian gives us the bit that matters a lot more. You see, in part one we consider “The plan allows Greece to extend and defer repayments on part of its debt for another 10 years and gives Athens another €15bn (£13.2bn) in new credit. Tsakalotos said it marked “the end of the Greek crisis … I think Greece is turning a page.”“, so an option to get even MORE DEBT. When was that a good idea? Now consider that the interest on the current loan is €640 million a year, so how does raising the debt by 5% help? You see, we see the game played, because the next elections are 20 October 2019. This is the beginning of an election stunt and the Eurozone is happy to help only if the current government does what the Eurozone tells them to. How is that for an option?

The next pack of non-truths is given by PM Alexis Tsipras with “The prime minister, Alexis Tsipras, told a meeting of MPs: “Greece is once again becoming a normal country, regaining its political and financial independence.”” I hope you understand that financial independence will not happen until 2045. The debt is that severe. The banks are not willing to be soft any longer, when the access to the markets are given it will merely take one screw up, one act of short sighted stupidity and people all over Europe will rally to demand the barring of Greece from the markets for decades. So when we are presented within: “The plan allows Greece to extend and defer repayments on part of its debt for another 10 years and gives Athens another €15bn (£13.2bn) in new credit“, you see this is what the beginning of slave labour looks like, a debt that cannot be repaid, a setting where €15 billion is merely a smoke screen and the coming years when you think your life is getting better, the truth is merely that your options are taken away. That is how you enter into slave labour. And the Eurozone will be nice and humane about it, they will not call it slave labour, they will call it new zero hour contracts and with the definition “Any individual on a zero hours contract who is a ‘worker’ will be entitled to at least the National Minimum Wage, paid annual leave, rest breaks and protection from discrimination” and the Greeks will realise too late that this government AFTER its election will set the stage where because of the high debts the National Minimum Wage would optionally have to be lowered by 20%, until the debts are better dealt with. So there you are sitting on a terrace having your last pita gyros with an Ouzo realising that you can no longer afford to do that, your income got cut by 20%. 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. The financial market is hailing the success, especially those making money of every trade, and until the money is gone, some parties on Wall Street will love the Greek, give parties in their honour. The parties behind this were shown in the NY Times last week (at https://www.nytimes.com/2018/06/19/business/economy/greece-europe-bailout.html). Here we see “To play it safe, Greece won’t start selling bonds until well after it exits the bailout. Instead, the government, which is being advised by Paris-based Rothschild & Company, will pick a moment in the next two years when market conditions seem favourable. A cash buffer of up to €18 billion, funded by creditors, may help Greece secure the liquidity it needs in the meantime“, so now the credit makes a lot more sense, does it not? A credit to pay the bills until there is one more fish to cook for Wall Street ending the existence of Greece. Well, actually the Greek elected officials will do that all by themselves. Because it will be there choice (through whispers) that benefits could be gained through 10 year bonds giving 10 more years of relief. Yet those billions come at a cost, a 2% cost which goes to the traders, they will cash in millions at the expense of a few parties costing them mere thousands, after which they switch off their phones, walk away and it is no longer their problem. For them it was merely good business, the direct application of a mere fool and his money getting parted.

Yet, this is not the only part. In what I would regard to be a direct outright lie, we see the actions from Pierre Moscovici as we are treated to: “Greece had received €275bn in financial support from its international creditors over the past eight years and twice came perilously close to being kicked out of the Eurozone group, the EU commissioner, Pierre Moscovici, said, adding: “There have been enormous sacrifices. But at last Greece will be capable of moving on its own two feet.”“. This is what I personally see an outright lie! Let me explain why I think that this is as bad as such. The documentation gave us (I already published it before). It is a paper from 2009 from the ECB and I gave light to it in my article on July 1st 2015, yes, almost 3 years ago. The article was ‘Dress rehearsal (part 1)‘ (at https://lawlordtobe.com/2015/07/01/dress-rehearsal-part-1/), the original paper is there at the end. It is called ‘Withdrawal and expulsion from the EU and EMU some reflections‘, a paper written by Phoebus Athanassiou. Here we see “The idea that the treaties should explicitly provide for a possibility of expulsion was discussed in the 2001-2003 Intergovernmental Conference responsible for drafting the ill-fated Constitutional Treaty, but was abandoned“, on page 32 it gives the premise that greed driven politicians did not consider that expulsion should be an option. In addition, the EU observer gives us in 2011 ““Neither exit nor expulsion from the euro area is possible, according to the Lisbon treaty under which participation in the euro area is irrevocable,” he added, referring to the European Union’s rule-book.” and there is May 2012, where we get “The Mechanics of Eurozone Withdrawal, It has frequently been stated that the EU Treaties contain no legal framework for a withdrawal from the Eurozone.  This is true and, indeed, the Treaties make it clear that the process of monetary union was intended to be “irreversible” and “irrevocable”“. The last we got from Locke Lord LLP, a Texas Lawfirm. So I now need to revert to my original Dutch Diplomatic self stating: ‘Moscovici, you stupid fuck! There is 9 years of documentation from people better educated than me stating that kicking out of the Eurozone was not an option in any way. So get a fucking grip on your stupidity and amend it or resign your post, your choice!‘ (Sorry, I needed to get that off my chest, I feel a little better now).

The final straw for my ego is found in the Guardian quote “But it means the left-led government in Athens will have to stick to austerity measures and reforms, including high budget surpluses, for more than 40 years. Adherence will be monitored quarterly“, when we consider that my setting was without the ‘discount’, the proven setting that the debt will be a 3G debt, it will push hardship on three generations. A setting I was able to prove with an abacus is now finally recognised by those less fortunate as they were not able to get basic calculus done. I am happy for me being correct, but not for the hardship that the next generation of Greeks face, they never had any choice in the matter, merely have to clean up after grandpa’s bad political choices, to them it is massively unfair.

The final part if given with: “At almost 180% of GDP, Greece is burdened with the highest debt load in Europe. The €320bn debt mountain is widely recognised as the single biggest obstacle to economic recovery. The International Monetary Fund had resolutely refused to sign up to the country’s latest bailout unless Eurozone creditors agreed to a restructuring that would ultimately make the debt sustainable“, most will not recognise the miswording that is used here. With ‘widely recognised as the single biggest obstacle to economic recovery‘, which is actually ‘Greece has no options to recover from a debt that high, not ever‘. Which leads to ‘International Monetary Fund had resolutely refused to sign up to the country’s latest bailout‘ and ‘make the debt sustainable‘, which needs to be read as: ‘the IMF cannot allow the support of a debt that cannot be paid off, lower it!‘, yet when is the setting for sustainable made? Making it longer by setting the €328 billion in three stages of 26 years each? Who will sign up for that? How many forward pushing bond programs will it require and we understand that among the banks (read: financial institutions), they are willing to do that as long as it is set in 25% profit stages, giving light to the fact that the additional pressure beyond the debt is the Greek population paying an additional €78 billion in sustainable bonus. If you’re Greek, would you want your child to inherit a €75 billion invoice at birth? That was what I predicted three years ago and I have been proven correctly and I have been conservative, when you consider the cost of the bonds, the interest paid to the people buying the bonds as well as the impact of devaluation of a nation that cannot fund its infrastructure. It is a mess and when you consider Forbes on 28th Jan 2017, where we see: “The IMF projects Greek debt will reach 170 percent of GDP by 2020 and 164 percent of GDP by 2022 but will rise thereafter, reaching around 275 percent of GDP by 2060” (at https://www.forbes.com/sites/timworstall/2017/01/28/amazingly-yes-the-imf-is-still-saying-that-the-greek-debt-problem-is-not-yet-solved), we see that they were off last year by close to 10%, so the prospect for Greece is even worse than the IMF predicted (I admit a slight overbearing assumption at present).

To illustrate that, I will revert to a source that I cannot vouch for, yet they give (at https://www.thenation.com/article/goldmans-greek-gambit/) “As a result, about 2 percent of Greece’s debt magically disappeared from its national accounts. Christoforos Sardelis, then head of Greece’s Public Debt Management Agency, later described the deal to Bloomberg Business as “a very sexy story between two sinners.” For its services, Goldman received a whopping 600 million euros ($793 million), according to Spyros Papanicolaou, who took over from Sardelis in 2005“, a fee closing that surpassed half a billion euros.

So in the end, the news, the papers the quotes, it will be up to you to decide how Greece is given a fair go, yet they themselves have mostly only themselves to blame. You see, in all this, how many Greek politicians went to prison? How many got their assets taken from them? Or are we all agreeing that there was no legal option? Now wonder if the legal options exist at present, if not. Then this is the bed of hardship that the Greeks made for Greece.

So, are the Greeks still being lied to? If that is so who exactly is presenting their version of the ‘facts’ to the Greeks?

 

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Milestones

We all hope to make certain milestones, some through fantasy, some through luck and some through anticipation. Your first threesome, the moment you joined the mile high club and for governments they have their own achievements, for example when they join the 100% debt club. So when we realise that Japan has well over 200% of GDP in debt, the US has passed the 100% marker and it joins those they looked down on for the longest of times. Italy, Iceland, Granada, Eritrea, Greece, Jamaica and Lebanon, all members of that 100% debt club, so when we see the Arabian Business (at http://www.arabianbusiness.com/politics-economics/395741-100-debt-club-set-to-get-new-member-from-oil-rich-gulf), treat us to the facts that Bahrain will soon join Libya and the Sudan as their debt exceeds their 100% GDP. We see more and more messages at present and even the IMF is setting a different atmosphere. We see part of that in equities.com. There we see “IMF (Page 10): Against a backdrop of mounting vulnerabilities, risky asset valuations appear overstretched, albeit to varying degrees across markets, ranging from global equities and credit markets, including leveraged loans, to rapidly expanding crypto assets.
MY TRANSLATION: In the last two major bubbles, the problems were mostly contained to dot-com stocks and housing. That is 100% not the case now. Almost every single asset on the planet – from stocks to bonds to loans and more – is wildly overpriced. There is zero room for error with prices at such dizzying heights
“. This is merely one setting; the field is expanding on a larger field and in all this, the nations that are passing the debt bar. France is set at 99%, so if they cannot contain the debt growth they will pass it this following financial year, leaving only Germany as one of the four large economies that is in a containable situation and there is where we get a partial ‘I told you so!‘ You see I wrote on part of this 5 years ago. (at https://lawlordtobe.com/2013/05/15/a-noun-of-non-profit/), I made a reference in regards to Brexit, but the setting of it all was a lot larger than merely Brexit. So as you get to contemplate “Consider a large (really large) barge, that barge was kept in place by 4 strong anchors. UK, France, Germany and Italy. Yes, we to do know that most are in shabby state, yet, overall these nations are large, stable and democratic (that matters). They keep the Barge EU afloat in a stable place on the whimsy stormy sea called economy. If the UK walks away, then we have a new situation. None of the other nations have the size and strength of the anchor required and the EU now becomes a less stable place where the barge shifts. This will have consequences, but at present, the actual damage cannot be easily foreseen. Any claim that there is no consequence and they predict no issues, remember this moment! The Barge (as is), will lose stability and the smaller members thinking they are on a big boat are now thrown left to right then left again as the storm rages on. The smaller nations will get damaged and in addition, the weaker ones (Cyprus and Greece) could still collapse, especially if the UK takes a non EU gander“, this was predominantly regarding Brexit. Yet the implications are larger as I stated. The UK is taking on Brexit and now we see that the German anchor it the only anchor giving some stability, the UK is taken away, Italy has lost its footing as it surpassed the 100% debt and now France is pushing that boundary as well. All because it was easier to play the popular fool than taking a hard stance on their debts, France is not alone, Italy and the UK are all there, the smaller ones have no options to give strength to the large 4 and as the UK figured out that going it alone is much better for the economy, we see a dangerous setting.

Even now, when we merely consider Spain in all this (not the smallest economy), we see (at https://www.southeusummit.com/europe/spain/spanish-economy-returns-grade/) that Standard & Poor’s is still playing (what I personally see) as ‘their little game’. Perhaps you remember ‘S&P reaches $1.5 billion deal with U.S., states over crisis-era ratings‘ (at https://www.reuters.com/article/us-s-p-settlement-idUSKBN0L71C120150203) the one quote (one of many) needs to be considered “S&P parent McGraw Hill Financial Inc MHFI.N said it will pay $687.5 million to the U.S. Department of Justice, and $687.5 million to 19 states and the District of Columbia, which had filed similar lawsuits over the ratings“. So when I see “S&P notes that Spain’s overall economic and budgetary performance has not been hampered by political tensions in Catalonia, as many had feared. The country’s GDP increased by 3.1% in 2017 and last week the Bank of Spain raised its economic forecast for this year to 2.7%, up from a December forecast of 2.4%“, you see, the numbers are not really in question, yet when we see the image below (source: Trading Economics).

When we realise that none of the EU nations has a grasp on their debts, in addition, the GDP for Spain went down whilst it is still below the numbers of 2016 and before, there is actually no reason to see the credit rating for Spain go up. I am personally speculating that the EU will be so much more hardship when France hits the 100% debt marker. It matters, because this will soon become the academic exercise that the question: ‘What is the difference between cooking the books and creating a false positive wave through inflated credit scores?‘ I actually do not have the answer here, but I guarantee you that the quality of life in Europe is not moving forward any day soon, not until some issues are seriously reconsidered. In addition, the US-China trade war isn’t helping anyone, not even the Europeans so that will also become a factor of debate soon enough. It partially relates to “We have revised upwards our GDP forecasts, with an intense rate of employment creation and an economic model based on the external competitiveness of our companies. With this scenario, we will achieve our objective for 20 million employed people by 2020“, the issue is that it is misrepresentation, you cannot rely on the unemployment figures and then state we will have 20 million employed, because on a population of 46 million, he might be implying that the unemployment numbers will skyrocket from 17.4% in 2017 to 56%, that would be crazy, yet that is what we are told, is it not? The best lies (read: miscommunications) are done through statistics, so that the feather matches the bird one would say. Still, back to my speculation, I believe that Spain is not the only nation in this setting; I think that some numbers in pretty much every EU nation are beefed, weighted and set to make Europe (or basically themselves in the European setting) look much better, so when the UK leaves they will not look as weak and feeble as they have actually become. It is a setting that is way too dangerous. There is no way that Mario Draghi is not part of this, so when we look at the Financial Times of last week we see ‘Mario Draghi acknowledges ‘moderation’ in Eurozone growth‘ (at https://www.ft.com/content/3e20b49e-4939-11e8-8ee8-cae73aab7ccb). So with “Analysts said that Mr Draghi’s guarded language suggested that the ECB may wait until July — a month later than previously expected — to provide the markets with updated “forward guidance” on its plans to phase out the crisis-era stimulus“. I am a little less optimistic in regards to the quotes, and when we see ““Better safe than sorry was the motto of the day,” said Dirk Schumacher, economist at Natixis“. I personally tend to see that as:

Better safe than sorry
It allows for another day without worry
As we pile the worries and woes
To a stack we can blame on crows
Those at the London Tower are best
Because when they leave the EU we can make them the jest
And when our barge is no longer secure
We move to Wall Street where we can endure

You might think that I am merely making light of all this. The issue is that people in Europe seem to ignore that over €2,000,000,000,000 was printed without the validation of treasuries or consent of the people whose funds got devaluated even further. Do you think that printing money has no cost? It is money that the EU never had, so why did you think it came without consequence?

This partially (and I mean partially) is seen in different ways when we look at an article from Reuters merely two weeks earlier (at https://uk.reuters.com/article/uk-ecb-policy-draghi/stock-volatility-no-big-factor-for-ecb-so-far-draghi-idUKKBN1HG1VR) ‘Stock volatility no big factor for ECB so far – Draghi‘, now I agree that volatility will come and go, so the ‘so far’ part is perfectly fine. When we see ““While we remain confident that inflation will converge towards our aim over the medium term, there are still uncertainties about the degree of slack in the economy,” Draghi said in the ECB’s annual report“, now I can agree with that. There will always be a certain amount of uncertainty, that is all good, no issues there, but it is set on a certain premise. When we see that Spain (the only visible one) suddenly in opposition of what I see as real has its credit score increased and as such we see the start of an optional bubble, when others do the same we see the forecast on unreal values, so we see the bubble is not set to the reality of the actuality, at that point, when a lot more start realising that some numbers do not make sense, the uncertainty grows and the closer the UK is to leaving the stronger that uncertainty becomes. At that point we see a run and a total collapse, when that happens, when the people realise that pensions before 78 is no longer optional, do you think that the people will remain calm? When they realise the impact of €2 trillion printed cash is impacting the 26 nations, how much value decline will they face? When that happens, how will people react in all this? Now we get to two elements, one is the mention in the Financial Times where we see: “But the weak economic data for the first quarter have triggered increasing speculation that the first interest rate rise will be delayed until later in 2019. A smaller number of analysts are expecting the bank to continue QE into the new year“, the second is that the entire stimulus was to set the economy right, which did not happen, now set that against inflated credit scores, inflated economies and the downturn that follows, that will happen, it can no longer be contained, merely delayed to some extent. When it does hit Europe would not have a penny left to balance against and it will leave the bulk of Europe destitute. There would be no defence against the next downturn and that is when disaster will truly strike. So as the story is pushing towards ‘protectionism’ and ‘patent values’, we should also consider that impact. Now, as a University graduated Master on Intellectual Property rights, I do comprehend some of the issues, yet I am not a patent attorney, so there are parts that I will ignore or not look at. Consider that a national economy is now more and more dependent on the national patents and the represented value that they hold. Now we get European Patents, the Unified Patent Court (UPC) allows for a simpler way to get it all registered and to some extent enforced. So it is a good thing overall, there was never too much fuss about that side, yet the one strong economy (Germany) is now setting the stage to oppose the UPC, we see this (at http://www.ippropatents.com/ippropatentsnews/europenewsarticle.php?article_id=5725), where we also see “Alternative für Deutschland (AFD) has called for the repeal of the convention on a Unified Patent Court (UPC). AFD “rejects the EU patent law reform”, according to the German Bundestag, which announced the motion on 7 March“, I believe that overall the UPC is a good thing, but there will always be small interests that are not perfect, no EU setting is 100% positive, yet overall, to get one filing for all EU nations, in light that even the UK agreed (and ratified) is a good thing. So when we see “It was based on three grounds, mainly how the UPC Agreement violates EU law, the majority requirements of basic law, and does not comply with the rule of law principle related to judicial impartiality. The complaint was scheduled to be heard in 2018 by the second Senate, appearing as the 11th item on its agenda. In Germany’s 2017 federal election, the AFD won 12.6 percent of the vote and received 94 seats, the first time it had won seats in the Bundestag“, there is an academic setting, yet with 12.6 of the council in hands of the AFD, a very Brexiting minded party, or is that Berlout or Deutchleave, we need to realise that the patent issue is a lot more biting in Germany and that cannot be ignored, as they give rise to uncertainties. So when we get back to the uncertainty there, as well as other uncertainties, and whilst we saw Mario Draghi accept that uncertainty results in stagnation, how much more stagnations are required for the next downturn, even a short term one, whilst the economic reserves have been already been drained.

Now we have a much larger setting, the EU was never about everyone agreeing on everything and the economic setting that requires that to happen at present is also making the dangers of waves that sinks the barge called EU. Now, that seems like an exaggeration, but when you realise that the German anchor is the only one giving stability, you can see the dangers the EU faces and more important, the dangers of no reserves and an utter lack to keep proper budgets in place, a setting now in more danger for the reasons that I gave supported by the economic views of many others. I believe some are downplaying the impact, yet when we realise that EVERY European Union government is downplaying the economic impact (as every nation always wants to look as good as possible, which is a PowerPoint setting of the human ago) we get a much more dangerous setting. We accept that the smaller nations have a negligible impact on the whole, but on a ship that can only remain truly stable with four anchors, losing three is a much bigger disaster than anyone realises, and that downplay will hurt all the players that are part of the EU, so when the downturn starts, we will see kneejerk movements from all the nations, all the big players and we can only speculate the fear mongering speculations that the IMF will treat the European audience to. I have no idea what form it will take, but when it happens I will take a deeper look. In a setting where every negative economic milestone could lay waste to whatever reserves its citizens wrongfully thought they had in the first place.

 

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The G30 court

There is an issue, an issue that we are all missing, more for the reason that after January 17th the media is steering clear of this with all the might and options they had. I reckon that they will spin this in a setting that it is ‘uninteresting‘, but when was it ever uninteresting to look at a group of 30 that has the alleged advantage of getting their fingers into a pool that has 0% risk worth billions?

The more important part is that there was one mention, or at least only one that was found, on July 7th 2017 and November 3rd 2017, both come from Reuters, the media has become that much of a bean flicking, pole pulling grape flocked bunch of pussies as I personally see it. Yet, the fact is that even as the impact is speculated, the setting given is that a group of 30 had an optional exclusive insight in the 3 trillion dollar ECB spending. Consider that each of these 30 got a 1% portfolio, where 75% of it was set at 0% whilst the remaining 25% might have op to 3% risk, in this setting the underwritten $31 billion for each member would set a speculated sanctified security of a multiple factors of $31 billion each. An elite group of 30 all having the top of the financial services cream at zero risk with the optional massive returns none of us ever had insight to. Now I can see that a mere 0.01% of that 1% would set me up for life, and that is merely the one source, the ‘in-crowd’, now would that be the incestuous insider towards untapped ‘considerations of investment‘ and they would all be bringing their own portfolios and economic insight on how to maximise that? Adding the man (read: Mario Draghi) spending Europe’s $3.1 trillion would happily be allowed into their midst, it is merely the setting that this rigs the game towards 30 participants whilst giving a weighted disadvantage to all other bankers is still an issue not covered by anyone.

So as we saw last November ‘ECB says not its call to publish content of Draghi’s meetings with financiers‘ (at https://www.reuters.com/article/us-ecb-banks-ethics/ecb-says-not-its-call-to-publish-content-of-draghis-meetings-with-financiers-idUSKBN1D327U) whilst we also see “At issue is Draghi’s membership of the so-called Group of 30, where policymakers meet bankers, fund managers and academics behind closed doors to discuss economic issues. He sits alongside former and current central bankers, such as Bank of England Governor Mark Carney and the Bank of Japan’s Haruhiko Kuroda, as well as Nobel laureate Paul Krugman

Yet even as we see “Ombudsman Emily O’Reilly had asked whether the ECB would “consider proactively informing the public of the content of these meetings” in response to “a complaint by activist group Corporate Europe Observatory, which said in January it was concerned about proximity at the G30 of ECB officials and bankers they are meant to supervise“, I cannot help but wonder what both Emily O’Reilly and Corporate Europe Observatory left unmentioned. It was also mentioned by the Dutch Volkskrant where the Corporate Europe Observatory (CEO) member Olivier Hoedeman added comment.

I tried to find more, so even as we have found Mario Draghi, Mark Carney, Haruhiko Kuroda and Paul Krugman as confirmed names (from the media), I initially believed that Groupe Credit Agricole (most likely Dominique Lefebvre) would be a member, I am also speculating that Peter Smith (as director of N M Rothschild & Sons) might have been a member of that group. There are a few other players, but it becomes increasingly less certain even from a speculated point of view. What does matter is that this is not merely some ‘secretive’ babble group. Even as we see last July “In a letter to Draghi that was published on Friday, European Ombudsman Emily O’Reilly said the meetings of the Group of Thirty, where central bankers, economists and financiers talk behind closed doors, are “not transparent” and questioned the ECB president’s membership of the club” as well as “Draghi has until September to reply to the letter in writing“, in that, the media and so called journalism stayed clear of this for the largest extent and the ECB did respond in October 2017 in the attached part. In my view, it all sounds nice but a select group of 30 with a pool of a number in excess of 6 trillion, where 30 people get first dibs on a risk bonus that goes beyond the comprehension of many and the media buries it on page 62 is a much larger issue, especially when the response on page 9 gives us “Moreover, Article 130 of the Treaty on the Functioning of the European Union safeguards the independence of the ECB and of the members of its decision-making bodies” whilst we all know that a mere fraction of $6 trillion has been a case for shifted morals and readjusted (read: weighted morals) in many regards, there are countless hours on C-SPAN that saw those liquid morals and settings in regards to the 2008 events, so the idea of ’30’ members ending up with golden parachute the size of Australia is not that much of a leap, speculated or not. So when we look back to the 2008 events and we see in January 2017, nine years later “The credit rating agency Moody’s has agreed to pay nearly $864m to settle with US federal and state authorities over its ratings of risky mortgage securities in the run-up to the 2008 financial crisis, the department of justice said on Friday“, whilst the damage from the 2008 crash was set to top $22 trillion, we should ask the US Justice department on where the remaining 21.991 trillion is and who was supposed to pay for that. So in all this the fact that the media is steering clear from the G30 and asking, or actually not asking anything past the Reuters articles seen should give alarm bells on many sides, not merely the media.

The EU Parliament magazine (at https://www.theparliamentmagazine.eu/articles/news/mario-draghi-under-fire-g30-membership), also gives us “CEO’s monetary and financial policy researcher Kenneth Haar said, “The Ombudsman’s decision is timely and very positive. Draghi’s involvement with the G30 was ill-advised from the start. Since 2016, when the ECB’s mandate for banking supervision was extended, the close ties between the president and the bankers’ group has become absolutely unacceptable“, or is that gave, because it is past tense and so far the media has remained silent since January 17. It seems to me (extremely speculative) that these 30 members are either connected or involved with the shareholders, stakeholders or advertisers in the media, because the media seems to be at all times protective of these three groups, whilst merely informing on those three groups in a filtered way, or to the smallest degree unless it was already out there in the field. The fact that this group has such a global hold is an issue and I might have been a lot less speculated on this, but the lack of transparency as well as the fact that we see “Tyga Gives Kim Kardashian A Hilarious Spelling Lesson On Social Media” and other Kim Kardashian on a daily basis, whilst the media remains silent on the speculated distributors of no risk trillions is a weird setting, especially when those sources have their fingers in thousands of billions. So when we see the BBC with: ‘Is it time we all unfollowed Kim Kardashian?‘, we might wonder whether it is yea or nea, yet there is a speculated 99.9999% likelihood that the G30 members will not make the cut towards monitored inclusion on following, I am certain that the first one that acts on that is has a boss who is likely (again speculated) to get a quick phone call from a shareholder, stakeholder or large advertiser to wonder if they have any grasp on their staff members and whether they want to manage or become managed.

Do you think that this is a stretch?

From my personal point of view I would give to you Sony (2012) issues, in regards to the change to the Terms of Service. The media ignored it, even as it would impact a group of 30 million consumers. Most of those players merely just trivialised it via ‘there is a memo‘ on it. The rest did even less; some even ignored it all together. With Microsoft (2017/2018) we see even more (at https://www.computerworld.com/article/3257225/microsoft-windows/intel-releases-more-meltdownspectre-firmware-fixes-microsoft-feints-an-sp3-patch.html)

You’d have to be incredibly trusting — of both Microsoft and Intel — to manually install any Surface firmware patch at this point. Particularly when you realize that not one single Meltdown or Spectre-related exploit is in the wild. Not one“, the amount of visibility (apart from marketed Microsoft Central views) is close to null, a system with no more than 17 million users is marketed and advertised to the gills, so the media seems to steer clear, merely two examples in a field that is loaded with examples.

Back to the group

So as I gave the speculated view earlier on the ‘whom’, we can see the full list (at http://group30.org/members), these members are according to the website:

  • Jacob A. Frenkel, Chairman, JPMorgan Chase International
  • Tharman Shanmugaratnam, Deputy Prime Minister, Singapore
  • Guillermo Ortiz, Chairman, BTG Pactual Latin America ex-Brazil
  • Paul A. Volcker, Former Chairman, Federal Reserve System
  • Jean-Claude Trichet, Former President, European Central Bank
  • Leszek Balcerowicz, Former Governor, National Bank of Poland
  • Ben Bernanke, Former Chairman, Federal Reserve System
  • Mark Carney, Governor, Bank of England
  • Agustín Carstens, Former Governor, Banco de México
  • Jaime Caruana, Former Governor, Banco de Espana
  • Domingo Cavallo, Former Minister of Economy, Argentina
  • Mario Draghi, President, European Central Bank
  • William C. Dudley, President, Federal Reserve Bank of New York
  • Roger W. Ferguson, Jr., President and CEO, TIAA
  • Arminio Fraga, Founding Partner, Gavea Investimentos
  • Timothy Geithner, President, Warburg Pincus
  • Gerd Häusler, Chairman of the Supervisory Board, Bayerische Landesbank
  • Philipp Hildebrand, Vice Chairman, BlackRock
  • Gail Kelly, Global Board of Advisors, US Council on Foreign Relations
  • Mervyn King, Member, House of Lords
  • Paul Krugman, Distinguished Professor, Graduate Center, CUNY
  • Christian Noyer, Honorary Governor, Banque de France
  • Raghuram G. Rajan, Distinguished Service Professor of Finance
  • Maria Ramos, Chief Executive Officer, Barclays Africa Group
  • Kenneth Rogoff, Professor of Economics, Harvard University
  • Masaaki Shirakawa, Former Governor, Bank of Japan
  • Lawrence Summers, Charles W. Eliot University Professor at Harvard University
  • Tidjane Thiam, CEO, Credit Suisse
  • Adair Turner, Former Chairman, Financial Services Authority
  • Kevin Warsh, Lecturer, Stanford University Graduate School of Business
  • Axel A. Weber, Former President, Deutsche Bundesbank
  • Ernesto Zedillo, Former President of Mexico
  • Zhou Xiaochuan, Governor, People’s Bank of China

They also have senior members, which is interesting as they are younger than at least one of the current members, as well as the fact that most of the members in the current, senior and emeritus group have multiple titles.

  • Stanley Fischer, Former Governor of the Bank of Israel
  • Haruhiko Kuroda, Governor, Bank of Japan
  • Janet Yellen, Former Chair, Federal Reserve System

And the Emeritus members:

  • Abdlatif Al-Hamad, Former Minister of Finance and Planning, Kuwait
  • Geoffrey L. Bell, President, Geoffrey Bell and Associates
  • Gerald Corrigan, Managing Director, Goldman Sachs Group, Inc.
  • Guillermo de la Dehesa, Chairman, Aviva Grupo Corporativo
  • Jacques de Larosière, Former Director, IMF
  • Richard A. Debs, Former President, Morgan Stanley International
  • Martin Feldstein, Professor of Economics, Harvard University
  • Gerhard Fels, Former Member, UN Committee for Development Planning
  • Toyoo Gyohten, Former Chairman, Bank of Tokyo
  • John Heimann, Senior Advisor, Financial Stability Institute
  • Sylvia Ostry, Former Ambassador for Trade Negotiations, Canada
  • William R. Rhodes, President and CEO, William R. Rhodes Global Advisors
  • Ernest Stern, Former Managing Director; The World Bank
  • David Walker, Former Chairman, Barclays
  • Marina v N. Whitman, Professor; University of Michigan
  • Yutaka Yamaguchi, Former Deputy Governor, Bank of Japan

So this group of 30 is slightly larger and in the group each of these members would have the power and economic impact to tell any member of the Fortune500 what to do, or better stated and more important ‘what not to do!‘ It is in that instance that we see the first impact. A game that now looks as I personally see it rigged in several ways; so even as I was allegedly wrong about Dominique Lefebvre or a direct peer, we see Christian Noyer. So in my view, in a 2015 French article on the issue of “Who will succeed Christian Noyer as head of the Banque de France?“, we see “Mario Draghi, the president of the ECB, seems to have had the idea to see his right arm go. Benoît Coeuré would be an important ally for the Italian in the Council of the Governor“, yet in the light of the G30, it seems to me that such a discussion would have been set into a pre-emptive conclusion of who would needed to have been made king in that castle. When we see that in light of a previous article, namely ‘The Global Economic Switch‘ (at https://lawlordtobe.com/2018/03/06/the-global-economic-switch/), were well over 500 billion is to be invested and grown, in addition to the fact that the SAMA has oversight to well over 2 trillion dollars, how come that they do not have a seat at the table? In the same way that the Rothschild’s are not there, but they might be ‘represented‘ through Bernanke or Frenkel, whilst it is not impossible that Mario Draghi might be giving them the low-down to some degree, yet the Kingdom of Saudi Arabia with that much money on the ladle of expansion, that they are not part of it. In a world where that group is about (according to their own website) “The Group of Thirty, established in 1978, is a private, non-profit, international body composed of very senior representatives of the private and public sectors and academia. It aims to deepen understanding of international economic and financial issues, and to explore the international repercussions of decisions taken in the public and private sectors“, where the foundation of Saudi Arabia has been the power of OPEC and the power to instil the push to be a global player in many fields, in that sight in represented value that the repercussions of decisions are set at, to see the Bank of Israel yet not some link to SAMA (Saudi Arabian Monetary Authority) makes equally less sense in the line of thinking that the ‘about‘ section gives us, which makes me wonder what these members are about. they might be all about that, yet what else they are about, or what else they have a useful value in gives rise to my train of thought on where this train with less than 55 occupants is heading off to, and more so, in light of the power that these ‘30’ members have, the fact that the G30 is not the cover talk of many newspapers, especially the Financial Times is beyond me, because anyone coming to you with ‘No News’ or outdated news, or even worse that there is no real issue in play is clearly told what not to write.

It seems to me that not only is there more in play, the personal speculated view that I have in light of learning more and more about the G30 merely confirms my suspicions, as well as the insight that I am getting (a speculated one) where the media is steering clear from all this is a much larger issue. To what and in which direction is one I am not willing to go into, because I know that the ice is wafer thin at this point and skating on water is a realistic ‘no no’, yet the feeling that these members are getting a first view and optionally the option to dip their cups on plenty into a grape juice barrel of risk-less profit is one that I feel is very much in play. This G30 group is networking on an entirely new level, one that I have never seen before. This is not some kingmaker into presidency; this is a long term group where the optional billions will keep on flowing for decades to come. And this all in a setting of non-transparency, because this goes way beyond the 3 publications in 2016 and of course all those papers published before that. In the 2016 publication ‘Shadow Banking and Capital Markets: risks and opportunities‘, (at http://group30.org/images/uploads/publications/ShadowBankingCapitalMarkets_G30.pdf), we see in the conclusion on page 49: “Moreover, growing leverage across the global Economy can create important risks to macroeconomic stability even if the financial system itself is more resilient. And two developments are particularly concerning: the growth of emerging market foreign currency debt and the rapid growth of Chinese leverage accompanied by a proliferation of shadow banking activities are ominously reminiscent of precrisis developments in the advanced economies“, which is in view of the experts would be nothing new, yet resources available and the 36 exhibits and the recommendations would have been available to the G30 group much earlier than anyone else. In that light, we need to wonder not merely on the setting, in Exhibit 36 we see mortgage losses and the fact that there is the US, Canada and Europe, so in that light the fact that the fourth one is the Netherlands, is that not odd? In light of several settings, France, Germany, Italy and the UK, any of these four would have made perfect sense, so why the Netherlands? Exhibit 33 might have been a reason for this, yet in equal measure the absence of Scandinavia and Italy in this setting now adds to the questions. I think it is not merely choice and presentation, the absence of those players give rise to questions, perhaps even speculated questions and as there are none to be given, it makes me wonder what else is missing, what other data was filtered because in the light of data and presentation there is one golden rule I have always kept in the back of my mind.

The Analyst shows you which investment needs to be made, the presentation makes you look forward to the invoice.

So what invoice is the G30 group making you look forward to and where did it need to go? Two questions with optionally very different results, and in that setting, whilst you know the impact the European economy has had over the last 15 years, whilst we also know that Mario Draghi has been spending $3 trillion, in that setting the G30 does not make the news?

Who is getting fooled by all this and who is getting fooled by making sure that you do not get to notice this?

It is a much larger playing field that is from whatever point of view you have a field of inclusion, or a field of exclusion, yet in all this there are questions that are not asked at all, questions that even I am not asking because I decided to go into technology, engineering and law whilst giving a pass on the Economic subjects. Yet the Financial Media is not asking them either and that is an issue, especially in light of that ‘secretive‘ group set to a stage of networking inclusion, or is it networking through filtered exclusion?

I’ll let you decide on that.

 

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