Tag Archives: Labor

The political blame

I love the Guardian for the most. They have a good grasp of things and we might not see eye to eye on certain matters at times, their opinion is still valued as it enables me to critically reassess my own view. It is the opposing part that got to me this morning as I read an article a mere 4 hours old. The title alone woke me up. With ‘Despite Hammond’s threat, the Tories cannot be trusted to end austerity‘ Richard Partington makes a dangerous statement. Does he imply that the Conservatives love austerity too much (not entirely false), is he making the statement that Labor (the Jeremy Corbyn facade) is likely to end it immediately placing the UK in even more danger? There are several ways to see this. The article with “Chancellor hints that a no-deal Brexit will mean an unwanted extension to austerity“, which is absolutely true in a few ways, still that extension of 2-3 years will be better than the ECB push to set the stage for 15 years of additional austerity. And when we are treated to “The chancellor is likely to argue that money has been set aside for a no-deal Brexit, but should it be avoided, he can use these funds to end austerity. The thinly veiled threat – coming on the day of the crucial vote on whether to leave without a deal“. From my point of view, whatever is in reserve is essential to reduce debt as soon as possible. You see £2.1 trillion in debt is a killer. The interest alone will be well over £210 billion each year. So every month £17.5 billion is required to be set aside (all speculated on interest being a mere 1%), lowering that requirement as soon as possible is the only way to survive whatever comes next. Germany did massively push austerity around 2010 and the debt (as well as the interest) went down. We acknowledge that Germany was in a much better place (export wise), yet the truth in undeniable, the debt is killing the people of England and it needs to stop. Irresponsible acts by Labour in the past got us into this mess and Labor is just too stupid to see the danger that they are exposing their citizens to, it must stop and that was for me the largest reason to embrace Brexit, even now when we see: “For the most part the Conservatives have recycled savings from austerity into tax breaks for the better off” we should get angry, not because of the falsehood, but because of the presentation. You see, any austerity will affect the better off a lot less than the others, there is no denying it. If only Labor had not gone overboard spending the way they did (apart from the £11.2 billion NHS IT fiasco), they had no clue what they were doing and gave us this death through poverty sentence. The banks are all on the side of Labor as they are making bankers rich whilst these bankers do not have to do anything at all, the long term commitment to £17.5 a month does that for them.

Then we get even more fuel with: “Analysis from the New Economics Foundation this week shows that raising the tax-free personal allowance to £12,500 and higher-rate income tax threshold to £50,000 will cost as much as £30bn. The financial benefit of the increases have benefited higher-income households most and further stoked inequality“. In the first, no one, not even the rich oppose the £12,500 part, the part that predicts the cost to be £30 billion is misrepresented as that also includes the losses by those who went from £11,850 to £12,500, and this is the largest part. These so called ‘rich’, an interestingly small number basically gaining a mere £3,650 to be taxed lower earning them £700 over a year, whilst the even wealthier group did not gain the additional benefits as their tax bracket remained the same. As for the numbers in 2017 only an estimated 364,000 (out of 68 million) made over £150,000 a year. An additional 4.2 million got to the £50,000 range. those people are not gaining £30 billion, the benefit is mostly there for the lowest range being the largest group by far and Richard should be ashamed of himself trying to push buttons in that way.

Inequality has been there for a while and it is not due to the tax regulations as such, it is due to Labor (and Conservatives) being cowards and not adjusting the tax machine to make large corporations making pay their due. When we see Google, Amazon and others paying a mere 1%, we need to hang those policy makers in Piccadilly square. That is the real culprit, but it is likely too uncomfortable for Richard Partington to point that out, he likely has well paid friends in large corporations. We can agree that “The deficit is still expected to remain as high as £19.8bn in 2022-23 according to the Office for Budget Responsibility, the government’s own tax and spending watchdog“, and guess what, properly taxing large corporations would have taken care of that and optionally reduced austerity as well, yet policy makers are unwilling to try that as they fear large corporations walk out. So what? Let them go and forsake a 68 million consumer base, they will learn soon enough when that move goes tits up for them.

It is not all him though, Richard is allowed his view (even the ones I very much disagree with), and the issue goes beyond certain people. Consider just a year ago when we were ‘informed’ on Apple at Battersea Power Station, a luxurious setting of hundreds of millions, of course they do not have to pay for it, as the tax payers gets to pay for all the taxation that they do not have to pay at that point. It gets even worse when we see the quotes in the Apple Insider. It is developer Simon Murphy that literally gives those readers with the prospect of them moving to plan B: “We’ll give [Apple] that building at the end of 2021. That’s what everyone is very confident about at this stage“, so not only did they short social housing by 40%, they also give away a place to large corporations? No one is asking questions on every level of government at this point (at https://appleinsider.com/articles/18/09/22/construction-delays-leave-apples-iconic-london-battersea-offices-in-doubt)? It seems that the way we do business has to change quite a lot and it is time to slash freebees to zero for the largest corporations. It is not only the Guardian though; we see a changed stage when we go to the Financial Times. They start (at https://www.ft.com/content/b2225c56-419c-11e9-b896-fe36ec32aece) with: “With economic risks again mounting, the EU needs new instruments” and that is merely the beginning. In addition to all the massive blunders they had by fictively keeping an economy running, by pumping 3 trillion into it, we now see: “reviving part of its stimulus programme after two years of weaning the eurozone off easy money — took markets by surprise. It should not have done. Signs of eurozone weakening, especially in Germany, and in key partners such as China, had been evident for months. Once the US Federal Reserve signalled a pause before lifting rates again, the ECB became likely to follow suit. In his final months in the role, ECB president Mario Draghi is clearly trying to get ahead of events“, form my personal point of view, Mario Draghi (and the ECB) are merely trying to keep the gravy train rolling and pushing the EU citizens into deeper debt with no option to get out, Brexit is the only way to cut that anchor. The ECB has become that irresponsible. It becomes an even larger problem with “By promising a new round of cheap long-term loans to banks willing to expand lending, moreover, the ECB will enable Spanish, Italian and other banks to roll over funding they have already received, some of which is set to mature“, so not only is it failing, the stage that the new debts are there to cover old debts is even more ludicrous and it should be to every person who read that. That is the push we see and we need to get out of it, these debts do not make governments better, they do not set the stage for an actual economy, it merely deposes nations to be ruled by banks, when any population is set to the stage where they are contributing to any economy by being a consumer against those who are not and regarded as a burden, at that point do we see that people are truly no longer equal, we are merely facilitating to the need of the balance of corporations and bankers are placed above the law and above any consideration. So at what point did we see elections that place banks and bankers above the law? And this is merely the beginning; we see part of this shift when we consider the words at CNBC by Invesco’s Kristina Hooper at a deeper level. She starts with: “I don’t think the slowdown is going to be that bad as we sit here today, and certainly that’s not what we got from the ECB [European Central Bank] in terms of their downgrade of growth forecasts“, yet when we see: “Now that we have the European Central Bank piling on, that raises questions about what’s going on. What are central banks worried about that is causing them to make rather dramatic pivots?“, that was actually simple, the ECB is dead scared of the ‘R’ word, it is ‘recession’ that scares them. Recession is on the horizon and basically the large four are all hit by it, or are optionally hitting it next quarter (France, Germany, Italy and UK), and for the ECB that is a problem, it would truly show that their policy was a failure, no matter how you dashboard the results into a precisely sliced and diced result that shows only positivity, the cost of living and the quality of life are impacting all and austerity is not a merely a dirty word, it is at this point a cause of suicidal depression for the many confronted with it. If only large corporations had been truly decently taxed, we could have avoided so much pain. We see even more in the end when we are treated to: ““China is employing a lot of stimulus both monetary and fiscal,” said Hooper. “We could actually see signs of some improvement in economic data in China.”” She is only partially right. China is not impaired with 26 anchors all trying to keep the EU boat on their needy little turf; in addition China has taken the lead in IP and Patents making a huge difference, in this America and the EU have fallen far behind. I have seen them ignore billions in IP merely because iteration is the prospect of long term management for large corporations nowadays in an age when these people are left without ideas, we see them surpassed by players like Huawei and Google leaping ahead and now we see the terms like ‘protectionism’ and how bad it is. On the other hand there is a solution against it, the Americans merely had to accuse Huawei as a national security danger and as long as they do not have to prove it can they get away with it, the moment they fail that they lose a lot more than merely an industry (in all fairness they do not really have any credibility left, so there is that too). There too we see issues; as John Bolton (the Trump geriatric solution to national security) gives us through the Sydney Morning Herald: “Bolton also offered blunt assessments on China’s island and military base building in the South China Sea and raised concerns “Manchurian” chips in Huawei technology could be activated for espionage” in this ‘could‘ is the operative word, there is no evidence, and as far as I can tell there never was. This too links to economies and economic welfare, Huawei leaped forward whilst the bulk of all economies were based on iterative progress. Why do you think that places like Google and Huawei truly leapt forward? Their rise is all about actual innovation, not iterative marketing. This makes for all the difference. And linked to all this is something truly away from the UK. With ‘STC, Huawei complete first indoor 5G trial in the Middle East‘, when we are treated to “Saudi Telecom Company (STC) and Chinese vendor Huawei confirmed they have completed what they claim to be the first trial of indoor 5G in the Middle East region. During the trial in Dammam, STC used 100 megahertz in the 3.5 GHz band on the 5G network, and achieved a peak user downlink throughput of 1.3 Gbps” with the additional “STC said it currently provides 5G coverage in more than 450 locations across Saudi Arabia” and this relates directly to the EU and the UK. To have an economy growing you need to be ahead of the curve and both are no longer doing that in several fields. Even as I personally understand and accept the statements by Alex Younger (fearless leader of MI-6); we accept his position and he is not wrong, but it is inconvenient for the economy. The others are merely supporting fear mongering absent of evidence and it is about to cost them. You see, 5G is the economy maker and even as I have well over 2 billion in IP value ready to stage to those with the proper offer, I am but one person and I am not alone. 5G will drive IP and it will push new borders in IP, specifically in trademarks, a shift we have not seen ever. In all this, we see the stage where not only will we see the technology shift where Saudi Arabia is surpassing the US technologically, they now have the stage where they can push and own a 500% growth all over the Middle East, America lost out by being stupid and complacent in an industry where free runners set the stage, not those that rely on status quo. The UK (and the EU) will either catch up, or be regarded as lost for consideration.
At some point people there will push for political blame, I do not think that this is a great idea, but that is what will happen soon enough and at that point, all those who gave rise to John Bolton and the US administration will face a massive setback, to be removed from consideration in a world where they once had mighty voices, the funny part is that every success that we now see by Huawei and Saudi Arabia will be another nail in their coffin. A coffin soon to be named ‘rented by [irrelevant person]‘. What a legacy to have in an age where political delays were the foundation of austerity through improper taxation of corporation. There is more than one setback on the location called Lake Iteration; I saw that coming a mile away. Too bad that those relying on status quo never realised that blinkers of that nature is only to stop wearer of seeing the bigger play-field through the adaptation of fictively removing fear, fear keeps us on our toes, it makes us consider what others do and why they do it; with blinkers we only see what those in charge of us want us to see and that is a large limitation, it makes us focus on what is in front of us and we seem to forget that we are not alone, by not seeing that others pass us by and we only see that whilst we watch their asses rush forward at that point will we consider picking up the pace, picking it up way too late. That too is part of any economy, it is the essential part of being ahead of the game and the ECB is seemingly all about a horse named ‘banker’ to get that advantage and it is costing us. You see, it is not about Huawei having this advantage, it is about the realisation that British Telecom is no longer in the place where Huawei now is. All whilst there is plenty of documentation that the US has been accusing Huawei since before 2012 and up to now, no evidence has ever been produced. So whilst we can go back to the quote from October 2012 with: “American companies and its government should avoid doing business with China’s two leading technology firms, Huawei and ZTE, because they pose a national security threat to the US, the House of Representatives’ intelligence committee will warn in a report to be published on Monday“, consider the options, is US Intelligence this bloody inefficient and incompetent, or was this about something else? The leaping headway approach by Huawei was visible 7 years ago and in that time nothing changed. That non change is important for the people to realise; it is the UK economy that is getting hit time and time again. If you wonder why austerity takes this long (and longer still) consider the steps that industries had not taken, investments not done and we see non-stop tax relief for those sitting still (read: sitting on their hands). the issues are directly connected and when we realise that Germany has decided not to ban Huawei (a nations decently paranoid on security), when we watch the German economy pick up sooner we all know where to point the finger, we point it at the inactive and the exploitative, when we link names to those connected there, that is when we see a first sign of carefully phrased denials and weighted mention of ‘miscommunication between parties’. At that point, will you be forgiving and accept the ‘moving forward’ excuse, or will you hold them and their tax policies to account to a much larger degree?

Stop blaming the rich, they already got there! You need to go after those facilitators, those looking for free scraps and scraps through inaction; those are the ones you want to make suffer for your delayed and optionally permanently deleted so called ‘quality of life’.

 

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Waffles, the Welsh Sidestepper

On my side, my party (specifically George Osborne) is stating that Brexit would leave UK ‘permanently poorer’, whilst on the other side we see Boris Johnson stating: “‘Its b******s’: Boris Johnson hits out at David Cameron over impact of Brexit on trade and jobs” as given in the Independent.

I stand by my party, but there are questions that need to be asked. Brexit, as well as a bankrupt America has been forever about greed moving, about giving in to banks and financial institutions. When we look at the Panama papers (and the debatable method how they got out in the first place), we see a banking structure that is completely greed driven, whilst we see again and again how the US (Congress, the Senate and the White House) give in to that greed whilst being unable to manage their debts and their budgets. In that same light we see the EEC remaining unaccountable for too long, pushing debts, overspending and non-accountability.

The Conservatives need to realise that scaremongering is no longer a method, yet here, is my usage of scaremongering correct? Are they scaremongering? You see, when we see statements from the PM, the Exchequer and the governor of the bank of England, we need consider the positions they hold. We might all consider the fact that we are being ‘misled’ because of a desperate, clueless and greed driven America, but is that the actual fact here?

I wish I could give you a clear concise and utterly precise answer. That I cannot do. Yet, what can I show you? Let’s take a look at that part!

The first consideration is given in the Independent (at http://www.independent.co.uk/news/uk/politics/its-bs-boris-johnson-hits-out-at-david-cameron-over-impact-of-brexit-on-trade-and-jobs-a6988236.html), where Boris Johnson gave us the following: “Now there is this idea that trade is entirely controlled by governments, that no trade takes place unless governments agree with each other” and “Well, b******s. It’s nothing to do with governments. It’s to do with businesses, people and enterprises deciding they have something to buy or sell“. We can to some clear part agree towards this? America is the best example here. They will sell anything and anyone at the mere drop of a hat (any hat), business is merely the operation of a seller selling its goods. Every corporation needs sales, whether locally or internationally. As the UK is selling, it is also buying, because these two go hand in hand; there is an equilibrium (at least some form of). As long as a nation exports more than it imports it is making a clear profit (whether taxable or not is another matter). This simple truth gives validity and power to the words of Boris Johnson.

The Bank of England gives us the following (at http://www.theguardian.com/business/2016/apr/14/bank-of-england-warns-brexit-could-do-serious-harm-to-uk-economy). We get to see: “extended period of uncertainty about the economic outlook, including about the prospects for export growth. This uncertainty would be likely to push down on demand in the short term,” then we get “A vote to leave could have significant implications for asset prices, in particular the exchange rate. The MPC would have to make careful judgements about the next effects of these potential influences on demand, supply and inflation. Ultimately, monetary policy would be set in order to meet the inflation target, while also ensuring that inflation expectations remained anchored” and finally there is “A Reuters poll this week found that 17 of 26 economists thought a vote for Brexit could prompt the Bank to cut interest rates for the first time since the financial crisis“. First the last one, because it is an easy option. I think that is a reality that the UK would face no matter what. Do you think that Mario Draghi setting negative interest rates would not impact the UK? Do you think that Draghi starting a spending spree, one that monthly exceeds the total fortune of Bill Gates will not be felt (at http://www.bloomberg.com/news/articles/2016-04-01/draghi-begins-ecb-monthly-bond-spend-exceeding-gates-s-fortune)?

We see in the News that Draghi has a planned total of about 1.74 trillion Euros of purchases in mind. That much debt added on the Eurozone. Who is paying for that? No one in Europe has that kind of cash, so explain to me how this would end well for anyone except the bankers and the financial sector? What will you expect when you send your 13 year old child with your credit card into a mall? Do you think that this teenager (regardless of gender) will come back with only the rashers of bacon, a pair of socks and a yoyo? Perhaps the storekeeper will talk your teenager into the consoles, shoes and lollies. It’s a credit card and the bill does not need to get paid at present. This is the reality the people at large have had enough of.

Now, back to the main line, because neither is lying, but in this first part, does the forecast of the Governor of the Bank of England matter? This situation is already out of hand, getting out seems to be the better of choices as no one is muzzling Mario Draghi, or those behind him trying to make sure that the money is spent. The Irish Times gave us another headline regarding the shopping spree of Mario Draghi: ‘In a world of negative rates borrowers get paid and savers penalised‘, in an age where the golden age group is the largest, the governments at large are using whatever they have saved to damage the elderly even more, whilst the criminals causing the damage are not required to be accountable. You might wonder how I am now labelling a party Criminal.

You see, in the Crimes Act 1900, where we see section 195 Destroying or damaging property. At Section 195(1) we see: “A person who intentionally or recklessly destroys or damages property belonging to another or to that person and another is liable to imprisonment for 5 years“. Seems odd doesn’t it? Yet, this conviction could make for an essential claim form the government as well. You see Austlii gives us “‘Property’ includes every description of real and personal property; money, valuable securities, debts, and legacies; and all deeds and instruments relating to, or evidencing the title or right to any property, or giving a right to recover or receive any money or goods; and includes not only property originally in the possession or under the control of any person, but also any property into or for which the same may have been converted or exchanged, and everything acquired by such conversion or exchange, whether immediately or otherwise“, which means that money and valuable securities, meaning ones retirement coin. In that regard, Draghi is playing with cash he doesn’t have, diminishes money he is not entitled to and the people at large are left with nothing.

Is anyone even surprised that the Brexit group is growing so fast?

So back to the Bank gov. You see, he is talking about forecasts, expected events and non-expected events. This is done as he should, but the silence around irresponsible spending has not been addressed for years now and this has the people scared, panicky and riled up, a really lousy combination if I might say so.

Now we get to the big one. The exchequer giving us “Britain would be “permanently poorer” if voters choose to leave the EU” as well as “The conclusion is clear for Britain’s economy and for families – leaving the EU would be the most extraordinary self-inflicted wound”, you see. I am not convinced. Moreover, I am not convinced that the 6% downturn would not happen. When we see spending into the trillion plus, what shortage would not happen? The question becomes how reliable is the quote “Britain would be worse off, permanently so, and to the tune of £4,300 a year for every household“. So where did he get those numbers from? There is a real risk of an economic contraction, but that risk is already there. I reckon that should the Exchequer want to regain any reliability and trust, than this full calculation with all evidence would be made public for scrutiny. That is massively unlikely to happen. This gives us the problems we currently face. Those who are needed in the trenches do not seem to be correctly informed and going public on those numbers would cause too many searchers for a document that has no longer value after the scaring is done.

Or is that scarring?

You see, this current government is not sitting safely where they are. When we read “It is a well-established doctrine of economic thought that greater openness and interconnectedness boosts the productive potential of our economy. That’s because being an open economy increases competition between our companies, making them more efficient in the face of consumer choice, and creates incentives for business to innovate and to adopt new technologies” we see the initial part of the problem.

What is written is a clear truth, but it does not touch on the issue that resides in all this. The image is given, with in personal mind that we are all accountable and that correct scope in usage is there. Yet the truth is that this required proper taxation laws where corporations can be held accountable. Governments all over (including the UK) have created a labyrinth of shelters leaving them with a mere shadow of a coffer, a government coffer that is empty, giving us the nightmare scenario we all currently face. You see, as I see it, greater openness requires accountability and the law at large has been remaining too short on the facts and yes to the options. Now we see an additional piece from the Guardian where they are explaining that magical number, still it reads like a presentation and not a journalistic piece. It is like the article is mainly the treasury making its case and no critical eye is falling on it. Yet, there is absolutely no indication that any of it is a lie. Yet, the countersign is equally a worry. The article implies that the UK could only exist through the coat tails of the EEC, that is not the image I ever held of the UK, this, not unlike the Panama papers, seem to give off a feeling that there is American orchestration. There is absolutely no evidence of it, but the way it is presented, it implies that high investment only comes from EU connections. I disagree, we only need to see how absurd luxurious and unaffordable sky scrapers come into existence in the UK to see that cash will remain on course towards the UK, the nice thing of an island is that space is finite and London is built to the max of its land size. The cost of irresponsible spending seems to be neglected as well as the paper downplaying the pressure of paying the EU. In equal measure is has (as I personally see it) downplayed the consequences of recessions. Greece has another one now, soon to be followed by Spain. Both France and Italy running high risks of two years of recession, all downplayed. The IMF added the last drop to the bucket. Again embellishing the effects of a Brexit, whilst they attacked Osborne’s austerity path in January 2013 (Olivier Blanchard), 1 year ago to the day Christine Lagarde is now admitting that Osborne’s plan was good as well as the best option.

So neither party seems to be lying, you are merely seeing different cogs of different engines in this entire play whilst you expected to see only one engine. That is no longer the case. What is still equally worrying is that the US is involved in all this. For them to not be involved is just too ludicrous to contemplate. That will be part forever overlooked. You see, the consequence that the Euro will have on the dollar has been trivialised.

This is where we stand, we see that there are no lies, but certain statements aren’t getting the proper back-up from open data. It is the rhythm in all this that we expect an American link to come forward sooner rather than later, for the mere reason that the collapse of the Euro will hit the US dollar like a sledgehammer, one that will spark collapses all over the financial field. This is something we see more and more in publications at present, but the one source I am referring to is the one I predicted on January 30th 2013, over three years ago (at https://lawlordtobe.com/2013/01/30/time-for-another-collapse/), there was no time line of the event, but I had initially (wrongly so) predicted it to be before now. So the entire Euro mess has been going on for 3+ years and again and again we get the unbelievable projection that next year will be better. Can anyone explain to me how that can become a reality when 41 trillion is unaccounted for? (US, Japan, UK, Germany, France and Italy)

Apparently debts are not dealt with, that whilst the top of banking on a near global scale ends up with a bonus exceeding 5 billion dollars (just the bonuses). Where does this money come from and who is getting the invoice on all this? It is that part that is pushing Brexit and Frexit forwards (although the massive reason for Frexit remains to be Brexit).

Waffling, sidestepping, welshing all terms to avoid dealing with the issues that are on our front door and let’s be clear, we all elected those people to do just this. If you didn’t vote you don’t get to complain! Even now, the bulk refuses to deal with anything, especially with the US element in all this. As for the perjury bit, is intentional misleading not the same as lying? It is the intentional part that bothers too many people, which is making Brexit fans as well as UKIP slightly too happy.

The final part

Here we get the final pat as excellently brought by Phillip Inman (at http://www.theguardian.com/politics/2016/apr/19/brexit-is-a-risk-to-uk-growth-says-carney). Not that word for word is such an achievement in reporting, but the article gives the part everyone should read. Here we see Marky Mark of the British bank (aka the Governor of the Bank of England) riding in on his shiny leased equestrian solution. Here we see a calm report given at the House of Lords. The important side is not the quotes, it is the way the parts were brought. The quote “Any positive impact of a [sterling] depreciation on activity would need to be set against any net negative impacts [whether on investment, consumption, exports or potential supply] stemming from its underlying cause.” He does not hit the nail with a hammer, he pretty much drives over it with a tank. You see, all he tells us in the article we get, we all understand and accept. The important side here is not what the immediate issue addresses, it is the indirect consequence of the act. A version of what lies beneath. Even if the Pound drops a little extra, that part is not the issue, the interest on a 1.5 trillion debt is the issue, that wave will hold too many people under water for a little too long, creating wrinkle upon wrinkle, each wrinkle drowning a few people with every wave. That part is addressed with the quote: “These are balances of probability, but the likelihood is that it will become more expensive to fund that deficit [if the UK leaves the EU] and, with a shift in the structure of it, it may mean that for a period the UK economy cannot run as large a current account deficit – it means that there would be less activity in the economy, less growth”. This is the brilliant side, because we waited until the Brexit crew was done waffling, we waited until UKIP shouted itself horse and the calm composed voice of Mr Carney now gives in clarity the part we all need to hear.

In perspective against the utter stupidity of the EEC with non-accountability and unregulated overspending, the British people are confronted with the simple fact that moving out of the EU will stop the ability for England to pay its debts (the interest on it). Until the economy improves the UK would go the same way as America with its unsustainable debt. It is by far the first clear element given to keep the UK within the EU for now. I have been on the fence for quite some time, but here is the one fact that matters. The British people by themselves cannot survive by itself to deal with what lies beneath.

It does not take away that the EEC needs to make massive changes, changes it needs to do tomorrow, not next week. Which shows a second part that the voters had forgotten about. You see, both David Cameron and George Osborne have been adamant and fighting to get the debt down, the one part forcing the UK in the EU, is the one element none of the conservatives want to see on the books. They prove that they want the best for England, which also gives more worry about Labour and the path Corbyn is putting the UK on, because in deep debt the UK will never have any options of choice.

So I say: Well presented and well played Mark Carney!

 

 

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I have seen this before

It was not a pretty picture this morning. The Australian deficit is about to be blown clearly out of the waters surrounding it. Yes, there was nothing wrong with the initial assessment that Australian would no longer be in the red before 2016. The plan was bold, it was feasible and after the Australian Labor party had blown its spending in the hundreds of billions, from a 57 billion debt, Australian Labor blew the national debt and grew it in excess of 250 billion, in addition, the forward spending spree by Kevin Rudd and Julia Gillard would give the Liberals a 600 billion headache, and it is a firm headache, which is about to get a lot worse.

Whether we see it as politics, treason or just incompetence, the Labour government seems to have played an intentional game of silencing certain contracts. It is my view that there is not possible, that after only 3 weeks into the liberal government that the car industry decided to just walk away. This was planned all along and they played nice with the Labor party for the view of whatever benefit game was played. So the Liberals ended up with massive invoices and bills that Labor should never have spent, but this is not about that, this is about a second game that has been in commencement. It has been played for a little longer that the Liberals have been at the helm, but in that instance, I will state that neither party is to blame. This is not political; this is political management of another nature.

For the second game I need to take a little detour to the 80’s. When I grew up in the Netherlands, more specifically Rotterdam, I was all about harbours, ships and engineering. My work with IT systems in the harbours gave me an interesting edge. I had access, I was busy all day programming new container solutions in Clipper and I dealt with cargo of several natures. One of the things I used to see on a daily basis was an enormous mountain of iron ore. It was meant for Germany, yet at times that mountain would not shrink; it would grow and grow and grow. In those days it made no sense to me, little did I know!

Now we get back to today, the current administration is about to bleed out no less than 20 billion for the simple reason that revenue of iron has gone down 40%, not that less is produced, no, iron is worth a lot less now. So, to get even, Australia needs to ship 250%, which is not an option. So why sell it at all? Now we get to an interesting article in the Sydney Morning Herald (at http://www.smh.com.au/business/price-drop-signals-the-end-of-the-iron-ore-age-20140912-10fxr7.html), we see here that the initial rise and fall was all in the previous government, there is also a clear view that not only is this rise temporary, the overall trend shows that the previous government had a lucky break (and still overspend by close to half a trillion), yet the current government is not innocent either as their view on iron revenue should have been downgraded by at least 20%, which would have lessened the impact. Neither is to blame, but also, neither is innocent here. So as we see the solution, we need to worry what will come next?

This is where it gets to be dodgy; it is sheer speculation in my side. I think that someone is playing chipmunk here. I think that a mountain is created using all manners of non-taxation and then they will sell it all off at a massive profit when iron price suddenly makes an upturn. Between March 2010 and April 2010, the price went from 139.77 to 172.47. Even though such a jump is not conceivable, the fact is that if housing improved only a little, iron prices will grow again and it is a global market, so as one person needs more, iron will do better again. so buying and storing when prices are down, transferring to a foreign account and then selling as prices bounce back, will yield massive profits for those non-taxable entities. Is it true? No, it is speculation (from my side), yet we have seen similar acts before, so it is not inconceivable, in addition, the Australian government is bleeding deficits fast, and they are amounting to serious amounts within the next three months.

This part is all on the Liberal side, it is not their fault, but they will need to amend their budgets and forecasts accordingly. And it is not just Australia, the UK has similar issues, yet not to the same extent, but the pressure is there too. The UK will take a 30 billion dive, which is a sizeable amount. This all beckons, why were predictions not made a little less enthusiastically? You don’t skin the bastard until it is dead (and very healthy for the poacher seeking crocs). This again shows the need to take a better look at how certain items are anticipated and budgeted. If you doubt that part, then ask George Osborne and Joe Hockey on how many complications those billions bring and it is not the only worry, because there is a second downside. Whoever has these current mountains of ore, they do have a firm grip on driving prices high soon enough, then what will we do?

So, when did I see this before? Well, that is the fun part; I saw it happen around 1989, when the prices went up a little (16%) form $12 to $14. Yes a mere $2. It becomes an interesting view when we look at the data form the last 30 years. The entire mountain of increase and decrease started pretty much in December 2003, when the price was $13.82. From there it would shoot up to almost $178 (2011), now if it is going back to its foundation price. Why was this not better investigated? How come that a commodity is driven up by 1369%? The final part we see in the Economist (at http://www.economist.com/node/21564559). The quote “In the longer term, overall iron-ore demand will grow as China’s march to urbanisation goes on. Demand in the rich world may be drooping, but Wood Mackenzie, a consultancy, says steel consumption will not peak in China until 2026“. Is that a given? When we consider the site macro business with the article ‘Chinese Iron production is booming‘ (at http://www.macrobusiness.com.au/2014/08/chinese-iron-ore-production-is-booming/), we see the question I had in my mind.  “The one question that nobody in the iron ore sector (or Australia more generally for that matter) dare ask is what if Chinese iron ore production does not close as Australian miners ramp up output. The reason nobody asks it is that the outcome will be calamitous“.

It comes down to, why should China import? They have cheap labour and resources, and they have iron (at http://www.srk.com.au/en/newsletter/focus-iron-ore/iron-mineral-deposits-and-projects-peoples-republic-china), so why import when they can become a supplier themselves. It is not inconceivable that Australian iron moguls like BHP, Fortesque, Rio Tinto and Hancock will see a decline in numbers. There is no way to tell whether it will return to pre 90’s prices, but if China gets their own iron and their demand for it goes down by 70% or more, the hard news hitting us now will be nothing compared to the bash we get when an industry of 250,000 miners will shed part of their people. We thought the car industry was a nightmare, well; consider that under current conditions if 40% less minerals are needed, we might see the shedding of 100,000 people, a level of bad news Australia has never faced before.

Even though Australia mines a lot more than just Iron, the metal impact could be harshly felt in 2015, if the situation does not improve.

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Are we getting played?

I have been away for a little while, which happens! We all have priorities a times and for the most of us (including me), when we are not directly involved in an issue, we tend to ignore them. This applies for me too. Yet, the news as I saw it last night was a little more then just uncomfortable. Last April (the 15th), I wrote the blog article ‘Facts, Fiction or Fantasy‘. I got two responses on how ludicrous the ideas were and as they were just filled with profanities, I decided to trash the messages (it is my prerogative to do so). In the article, I mentioned on how Greece had started to sell bonds again. Their credit rating seemed to have gone up just ever so slightly. Now I read that over the last two days that bank shares have fallen 5.66% and 5.79% respectively. The first complaint that I am likely to hear is how these two are not the same and one does not mean that the other is true, which is correct, but consider the following. A bond is nothing more an ‘I owe you’ between the seller (the Greek government) and the buyer (the investor). The investor relies on information like credit ratings (from places like S&P and Moody for example) to make an assessment on how realistic the investment is. The fact that almost a month later the quote ‘Greek lenders are likely to face large losses over the next two years’ is seen, gives rise to the question whether any upgrade to the credit rating was valid.

Basically, the values of bank shares have diminished by 11% in just two days. How are we getting played? Consider that the banks are dependent on governments, consumers and others to survive. The fact that they went down 11% in two days in a month after the government sold another 5 billion in bonds is not unrelated. The fact that we got informed by the IMF (a ‘prediction’ which is bogus in my view), on how economies were getting better (they stated: “17 out of 18 economies would be positive economies in 2014”), was already not realistic, now we see the Greek bank shares drop and next, in regards to current credit ratings, Ireland now ‘suddenly’ gets a small upgrade.

The question becomes whether rating offices (like S&P and Moody) engaged in what I personally regard as a ‘criminal endeavor to perpetrate a fraud’ against the people of these nations? More important, are they servicing the American banking moguls in that respect? Let me elaborate on this thought. No matter how the American economy is seen, the USA treasury coffers are far beyond minus 17,000 billion (= 17 trillion). The interest on that must come from somewhere and the USA is not likely to be able to afford any level of paybacks for a long time to come, especially considering that this administration has been unable to achieve any kind of balanced budget from the moment they came into office. This is nothing compared to the total USA debt which is somewhere between 50 and 70 trillion (I have no reliable source on what that actual amount currently is). The idea that the EEC might fall apart must be a Titanic sized Wall Street nightmare at present. UKIP is growing (for now) and the French Front Nationale is definitely on course to become the leading French party. Both parties, as well as the Dutch PVV are all in favor of segregating away from the Euro mess and if that happens, the American goose is truly cooked. If they (the financial institutions) are playing a game where too many nations have added even more debt, then the chance of moving away from the EEC is less likely as it would become too unrealistic in regards to the costs that would be incurred on the French and British coin when the total EEC debts are spread around, which might be the game that is currently being played.

It is likely that my thoughts are completely wrong and so out of whack that they only belong with the conspiracy theory magazines. Yet, when we see the debts these places are in, then upgrading any level of credit is just utterly insane to begin with, so I might have something here.

It is not just the issue on ‘how’ or even ‘if’ there is any form of economic growth, the issue is that the outstanding debts are a local responsibility and in stead of push it forward to the next government in place, these governments (all EEC nations) have a sworn duty to stop handing debts onto the next generation. They have a solemn duty to lower the debt. It is not their responsibility to enable multimillion-dollar bonuses to financial groups. They must lower debts. We as people are not here to cater to a group of what I regard to be as flaccid US economists, we all need stronger economies and increasing debts are no way to get to these stronger economies.

Here in Australia we see the objections on the harsh measures that are now being taken by treasurer Joe Hockey. I agree with him to a larger extent. I have zero sympathy for the honorable Bill Shorten (The initials BS are interestingly fitting), on how campaign promises were ‘broken’. He should remember that it was HIS side that had overspend by hundreds of billions. Money their side did not have, so after dumping a car mess and debt mess on the Liberals, they are now crying in opposition. The added mentions by Chris Bowen are equally a joke as this is a Labor mess that the ALP members are now trying to resolve. None of them seem to mention that it was THEIR party in government that had spend the money they never had. Perhaps Labor should consider answering questions on how these issues, which were known long before the election started, should have been resolved before the election started. They will not have any answers there. They overspend and WE (the taxpayers) are now burdened with fixing these issues! In that regard Australia seems to be taking a leaf out of the book or Chancellor Merkel, who through massive austerity directives got the German economy in a much better shape. I feel relieved (even thought it hurts me too), that the ALP is now fighting to get the Australian economy stronger and the coffers of the treasury out of debt. Personally I still believe that when (not if) the US Dollar collapses after the first loan defaults, any nation in massive debt will learn the hard way, the price it faces when the debt is due. Those without debt will get to call the shots for the future and personally I will be happy when we will be sitting at the global governing table where we can choose what will be best for us. Those at the table without a coin should remain silent at the table, those holding the loan slips will get to decide the future for all others, a lesson that is likely to be humiliating and no fun for the citizens of the involved nations in debt.

In the end no matter how good an economy is, the upcoming profit will go to whomever they are indebted to for a long time to come.

It is not a nice solution and in these times it will never be a nice solution, but it must be solved and whilst we might see the insulating joke scandal that had cost money and lives are another side how the Australian Labor party had failed the Australian population. This is not just me bashing the Australian Labor party (no matter how entertaining that exercise is), Bowen is an economist and as such he should in my eyes know better then to proceed on the outspoken track he seems to be. The question in this regard is who Labor was listening to whilst Labor was governing with the fighting twins at the head of that table (Kevin Rudd and Julia Gillard). I feel certain that during that term someone was advising the treasurers Wayne Swan and Chris Bowen (which would be a perfectly valid act), who were the advisors in those years? We can all agree that even though overspending by hundreds of billions is a really bad idea, claiming it was only the treasurers act is just folly! Someone had an advisory plan and the Australian people has a right to know who that was, especially as it is Chris Bowen (former treasurer), now claiming that current affairs are so out of touch with reality that he is rallying the people against the ALP at present. I do think that some cutbacks are too harsh, yet, as I see it, Labor has no right to speak out, as these matters would not be the issue if they had not overspend all these billions.

This is at the heart of the matter; it is about the advisors behind the screens.  We need to see and hear those names! When we seen the list of advisors in that regard (on a global scale), we might be able to start painting a picture. There is even a chance that this picture is a lot more incestuous then a global view of Market Research, but we will decide on that when the picture is drawn.

We can all agree that governing parties are in need of advice and as such, they draw a plan, which is/was executed. So where did the debt come from and who did not close the wallet in time? If that was just the treasurer, then Chris Bowen has in my view no right at all to be this upset as he was the previous treasurer. That part is exactly part of the pain that is playing in Greece and perhaps soon in Ireland too. Where are the people behind the screens? If Sky News is to be believed then the prospect that ‘Greek lenders are likely to face large losses over the next two years‘ shows that upgrading the credit rating of Greece and the subsequent selling of billions in bonds was more then just a really bad idea. It boils down to another example of bad news management. I wonder whether investors would have a claim if they lost money on the purchased bonds only one month ago. Should my case be proven, it should also be clear that we should see the names of those ‘advising‘ on increased credit scores. I do not mean the names of the companies, but the names of the individuals who signed off on that news. Just like the names of the EEC economists that claimed that 17 out of 18 economies would grow in 2014 (mentioned in my blog on May 8th called ‘Public Naming‘).

It is time to shine a light on those who are the cause of many governments overspending their budgets by a lot and on those ‘analysts’ who seem to decide on how much an economy ‘should’ grow, especially as they drop the value of Twitter, who grew revenue by 119% (an amazing feat), which amounts to almost a quarter of a billion dollars. In my view, we the people are getting played by a select group of ‘economists’, who seem to be making more per person per month post taxation then most of us make in a year pre taxation. If you think I am kidding, then consider that the $5 billion in Greek bonds from last April represented a bonus value of $50 million; do you still think I am kidding? When Ireland ‘suddenly’ starts selling bonds, remember that someone will end up with up to 1% of that amount in commissions.

We are all getting played to some extent and it is high time that this stops before we end up paying the bills of other people’s overspending spree! Getting out of our national debt should be our only concern until this is achieved. A goal that should be shared by all the EEC nations as well.

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What goes up…..

The next blog has been bumped to the next blog, mainly because Sky News was kind enough to show the snivelling cry story (me now playing the world’s smallest violin), by the ACTU secretary Dave Oliver, yes, the text in the background ‘join for a better future‘ reads nice, but the story he is giving is intentional misdirection. Holden and Toyota did not leave overnight (which was discussed in my blog on February 12th called ‘The last Australian car‘), this was planned for a long time, as such, what he now calls ‘the opposition’ was at the centre of this entire mess.

When we hear statements like ‘everything is on the table‘ then that person is already deceiving us all. So let’s take a look at some of the things stated at http://www.skynews.com.au/businessnews/article.aspx?id=955273.

Qantas has asked the government to change the Qantas Sale Act to allow more foreign investment arguing the strings attached hampered its ability to compete on a level playing field with its rivals“, which makes me wonder how this remains an Australian icon to begin with.

Some aviation analysts argue the best option for Qantas would be to split the company into three separate companies: domestic, international and ancillary services such as the Frequent Flyer program and freight“, which reads a lot like the ‘bad bank’ solutions we have seen all over the global financial sector, which in the end leaves the taxpayers with an unfair bill.

The Australian gave us (at http://www.theaustralian.com.au/business/aviation/pm-failing-australian-workers-on-qantas-actu/story-e6frg95x-1226844413018) the following statements.

the headline is already a first “PM failing Australian workers on Qantas: ACTU“, this is followed by “How did it get to the stage where our Prime Minister won’t even stick up for Australian jobs?” and “Australian unions will meet with Qantas CEO Alan Joyce this week to seek a commitment to minimise job losses, following the airline’s announcement last week it would slash 5000 jobs“.

So, let’s take a look at this all. From the first moment, with all due respect, This Dave Oliver comes across as a man born not too bright and he stopped evolving after birth. Why is this my personal view? You see, one should always keep an eye out for the reasoning. Without that, we have nothing but noise.

First the income side as it was reported by the Herald Sun last September 7th (at http://www.heraldsun.com.au/business/qantas-freezes-pay-of-chief-executive-alan-joyce-but-offers-him-1m-in-bonuses-and-shares/story-fni0dcne-1226713613053), where we see the following: “Mr Joyce’s base salary for the year to June remained unchanged at $2.109 million. But a cash bonus of $775,200 and $387,000 worth of deferred share payments bumped the total remuneration package up to $3.3 million for the year. Mr Joyce gave up his bonus the previous year when Qantas reported its first annual loss since privatisation. The airline, which last week reported a wafer-thin full-year net profit of $6 million, said a general freeze on executive management pay would apply over the coming year“.

So basically, an airline, this large, reports (according to the Herald Sun), a full year Net profit, twice the amount the CEO made in a year. So, the income of the CEO was 50% of the NET profit. This was in the era of labor and this is not inviting any clear statements of outrage or disgust? Let us not forget that the tier of high executives would have been less, but still substantial, which in my view becomes that the Net profit of Qantas was in 2013 a lot less than the income of the board of directors alone. which makes us wonder on how 7 high executives are save whilst 5000 jobs are forsaken to other areas. The positive news was 11 days before the Liberals came into office, and within three months, Qantas analysts ‘suddenly’ misplaced (or lost) a quarter of a billion dollars, how convenient. So Mr Dave Oliver, why do you not stop crying and take a long gander towards this obnoxious fact?

It is not the job of the government to provide for free slave labor (through financial incentives to big business for keeping jobs), mainly because this is Australia!

This all takes another tumble when we see the news (at http://www.news.com.au/travel/travel-updates/qantas-to-cut-1000-jobs-as-ceo-alan-joyce-takes-pay-cut/story-e6frfq80-1226775800430), where we see the following “Mr Joyce’s $3.3 million pay will be cut by at least 38 per cent this financial year because of the airline’s poor performance – which would leave him with a $2 million pay packet” this was on December 5th 2013, in less than three months they went from plus 6 million to: “Qantas said it expected to report an underlying before tax loss of $250-300 million for the first half of the 2013-14 financial year“, which gives us two points at this precise moment. The first is that in my view, the September report was feigned positivity as we were set up for the bad news blows. When you go from +6 million to minus three hundred million you better believe that we the readers and we the workers are getting played. So at this point Mr ACTU, would you like to please change your view from Australian Icon to Australian joke? When a company makes this fast a tumble, there is clear mis-management, mis-representation and mis-organisation, whilst the labor government was run by Miss-NotAllThatInformed (in those day referred to as ‘prime minister’). So whilst Dave Oliver is presenting under the veil of violins speaks out for all those poor poor workers, he should better realise and change his tune to make it sure that this was bungled by labor, for big business and 5000 workers are about to pay a hefty price for such levels of negligence.

So what about Tony Abbott?

Should a government give out a debt guarantee, whilst there is a decent amount of clear evidence that this money could be lost overnight? It is not for the Australian tax payers to lose this amount of money whilst the Qantas top will walk away with millions and with new foreign investors there is still a likely chance that many jobs will go overseas (why else would they invest in the first place). It is also the case that in that same news message (from December 5th) that former Qantas Group Chief Economist Tony Webber left the message that it was too late to help the ailing airline. Is he correct? I am not sure, but I feel certain that he would know a lot more of the Qantas finances then either the ACTU, the ATO or the other interested parties in forcing the hand of government to sign a debt guarantee. The fact that Tony Webber is now managing director of Webber Quantitative Consulting and Associate Professor at the University of Sydney Business School, gives more weight to the value of his statements then the feigned spoken outrage from some of the other players (even if he is not a UTS professor) ;-).

This situation as we ‘suddenly’ see the Qantas debacle was not grown overnight. This has been a failing business dimension for well over a year, because $300,000,000 is not lost overnight, it had to have been known for some time.

 

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The bad and the worse

I have had several views in many directions, but two issues are rising that require us to take a critical look at us. Some will agree, some will disagree and many will not know where they stand in these two issues. The first is again about labour, both work and politics.

Of course, it does not help when Bill shorten starts to ‘rant’ on the issues that hit many. The first issue is Alcoa. It is an Aluminum smelter. The first quote is “Aluminium manufacturer Alcoa has contradicted federal government claims that the carbon tax led to the decision to shut the company’s Point Henry smelter and two rolling mills in Geelong and western Sydney” (at http://www.smh.com.au/federal-politics/political-news/alcoa-contradicts-joe-hockey-on-reasons-for-smelter-shutdown-20140218-32yir.html)

In addition we see the quote from Bill Shorten where is said “It’s clear that a global oversupply of aluminium, dramatically falling aluminum prices and a high Australian dollar made the continuation of these operations impossible” he said.

Shall we take a small step back to the 12th of February 2013 where we see the following quote (at http://www.businessspectator.com.au/news/2013/2/12/resources-and-energy/alcoa-vic-pass-carbon-tax-liability-federal-govt)

The plan addresses a long-standing issue whereby decades-old agreements between Alcoa and the state government included guarantees of cheap power that left Victoria holding the responsibility for the carbon tax due to an inability to pass on those costs to the aluminum giant.” as well as “Under the deals, the state will pay an increased power price and pass most of that through to Alcoa.

So, taxation is up, power costs are up and prices are down. Mr Shorten needs to take a hard look at his own party and the shortages of his own Labor government where we see that these issues were known for over a year. The fact that Labor decides to park the issue until after the election means he now needs to remain quiet. Yes, it will be an issue, but for him to nag like a little girl is what happens when his predecessors decided to ignore the issue. The liberals warned about the dangers of the carbon tax, the people were hit massively hard by the carbon tax and now hell is to pay and in my view, the Labor party better foot that bill real quick. This is however not the first instance. In Feb 2012 a similar newscast was made by the Australian. The quote “ALCOA says a carbon tax will make life harder for the company as it reviews the future of its Victorian smelter and the jobs of up to 600 workers.” (at http://www.theaustralian.com.au/archive/national-affairs/tony-abbott-seeks-to-blame-threat-to-alcoa-smelter-jobs-on-carbon-tax/story-fn99tjf2-1226265695323), So Labor was aware for almost 2 years in their reign that the Carbon tax would have a definite influence.

The last line of that article by the Business spectator states “If we got all that right, it is no skin off Alcoa’s nose, is it? But it does take a significant burden off the Victorian taxpayer.” Well, see the result! It was apparently more than just skin of the nose of Alcoa and as such it becomes a different kind of burden on the taxpayers.

The final quote from the Business Spectator article was the one the article started with “Aluminium giant Alcoa and the Victorian state government have designed a complicated set of deals intended to place the liability for rising power costs onto the federal government, according to The Australian Financial Review.” So an American Company is deciding that the rising risk of higher power costs should be carried by our government? Alcoa reported (at http://www.alcoa.com/australia/en/news/releases/2014_01_09_4Q_Earnings.asp) on January 2014 the following:

Revenue of $23.0 billion whilst reporting a Net loss of $2.3 billion, or $2.14 per share

Let us not forget that this was a better result than 2012, so Labor KNEW that there were several issues here. When you ‘service’ an American corporation who loses well over 2 billion whilst reporting revenue at 23 billion, there are issues plain and simple. I can agree with some that there claim made by Joe Hockey is not completely accurate (in regards to the carbon tax being the reason), but there is no doubt that at a 2.3 billion dollar loss, the carbon tax might have been the proverbial straw that broke the American Smelter Camel’s back!

We should however not just blame Bill Shorten (even if some feel that this is a more comfortable choice). The Honourable Kim Carr (seen in newscasts bearing a slightly less waxed chin then Bill Shorten) has been in both the foreground and background in more than one occasion. So it is only fair we take his actions in account as well. If we consider my blog article ‘The last Australian car‘ from February 12th we see a few more angles that gives worries to the Labor side of it all, especially in light of the quote “writer Judith Sloan brings a case that Australia has subsidised almost $1900 per vehicle produced.” I mentioned. Is it a good deal when we see these costs and support numbers go out? If we take $2,000 subsidy per car and if we consider that Toyota made 100,000 cars last year, we see the costing of $200 million a year in subsidies, which is a lot more than what the workers would cost every year. So, no matter how good it looks, $200 million is way too large a bill to just handover to a car giant. Is there an alternative? Perhaps the Dutch alternative where VDL Nedcar, who was initially in the news in 2012 with the headline “Mitsubishi Motors to sell NedCar plant for 1 euro to VDL” was the beginning of a new plant, completely refitted for 24 hours a day automated manufacturing. They are now starting to build the new MINI Hatch as per this summer. Is there an opportunity for Australia? Yes!
With an upcoming customer base of 22 million (deserted by Ford, Holden and Toyota), VDL Nedcar might see Australia as the opportunity of a lifetime.

It is however not just the car industry. Sky News is just now showing another iteration of job losses in Victoria (at http://www.theguardian.com/world/2014/feb/19/victoria-promised-federal-funds-as-alcoa-shutdown-adds-to-job-losses), so as Sky News and the Guardian shows us, what I would see as the hollow words of Bill shorten were he states “Spend the money this year, then you can save hundreds of jobs, you can keep excellent world-class naval construction skills in this country.

Yes, Labor is all about SPENDING money! Let us not forget that the treasurer has been presenting the massive bill that Labor left Australia. The National debt went from 58 billion in 2007 to 257 billion in 2013, all under Labor. So perhaps the irritating quote by Labor leader Bill Shorten on “Tony Abbott and photo opportunities” should change. He should ask how his own party had been spending money they never had in the first place. When we see the $200 million in slave labour bonus (oops, I meant subsidy) for Toyota we have to wonder how long until we are all at the mercy of whoever owns these debt markers (most likely the banks). Labor does not get to nag on the cost of living whilst overspending a little over $11,000 per Australian resident. So when we hear another whinge by Bill Shorten on the deficit, consider that his party had been spending it, making it all a lot harder for many Australians in the upcoming time-span 2014-2016.

The issue of the car makers as well as Alcoa were already known issues in the Labor era and shouting now, whilst not securing these markets (which was in all honesty not a realistic option) is just plain wrong.

In addition there is one strong factor, which has been a known weakness was not dealt with in the Labor era either. It is the energy shortage, which is at the heart of several factors (especially Alcoa). If we accept the ABC transcript (at http://www.abc.net.au/7.30/content/2006/s1796094.htm), then it is only fair that we point part of this blame at the Liberals as well. The issue was known since 2006 (even though Labor got to power in 2007). From several texts, I myself come to the conclusion that something had to be started in 2005, which was not done. Labor ignored it for 2 whole terms making the issue just a lot harder and now the Liberals MUST address this issue. If you are wondering how correct or how wrong I am than just take a look at your Australian energy bill. My bills have grown, whilst remaining a stable user, by over 100% in less than 6 years. This makes it a hike of over 16% a year. In addition, the carbon tax really pushed up the prices. Focusing on cheaper energy would have made a real difference for all parties concerned. In addition, this is not a local issue, it is not a national issue, but it is almost a global issue. The same issue can be seen in the Netherlands, the United Kingdom (very clearly), as well as America. So, it is nice to keep making cars and Aluminum, but if it is not financially viable, the tax payer ends up footing the bill no matter which road we take. So, the dollar, our work conditions and other factors will always remain an issue, but if energy prices are not solved, the one part that will drain any options we might have had. Consider the Business Spectator quote “Point Henry alone represents almost 7 per cent of Victoria’s annual electricity consumption“, so one plant needs THAT much? How could this issue have been ignored for almost 3 administrations? I see that there is a manufacturing issue in Australia, but if the energy prices are not dealt with, we will see a national shift from bad to worse.

Perhaps this will be the moment of innovation; perhaps we should focus on other areas. It only takes one innovator to come with that golden idea that brings income (not costs) to our states. I just hope that politicians on both sides of the aisle will listen to that person.

 

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