Tag Archives: Mario Draghi

A changing language

Europe is in several stages of unease; there is the spending of Mario Draghi, Brexit remains on the mind of many. Yet, the one change that is now more and more in the foreground of many is the problem that Turkey seems to be. There are those set on the stage to end Turkey as a NATO member and subsequent becoming part of the EU, there are things going forward and backward, but the language involved in all this is changing, so are the settings for the meetings yet to come. In all this the latest Turkish act to double down on the Russian S-400 purchases in 2020. There is, as I stated unease and as I see it the entire EU-Turkey mess is now a dance around unclear settings. Yet the settings are founded on what some would call, clear and blatant lies.

So to recap, on March 26th in the Bulgarian port city of Varna with the attendance of President Recep Tayyip Erdoğan, there will be a summit. The given setting is “to discuss EU-Turkey relations as well as regional and international issues“, this we got from the spokesperson for Donald Franciszek Tusk. The meeting held at the leaders’ level will be hosted as a working dinner, a statement signed by Tusk and Juncker said. Yet soon thereafter it begins. With: “Ankara has been stressing that the EU fails to understand the challenges that the county faces, and calls on all sides to take Turkey’s concerns into consideration, particularly against the PKK and the Gülenist Terror Group (FETÖ), which carried out the failed July 15 coup attempt“, yet how is that true when it has been clear for the longest time “Turkey witnessed the bloodiest coup attempt in its political history on July 15th, 2016, when a section of the Turkish military launched a coordinated operation in several major cities to topple the government and unseat President Recep Tayyip Erdogan“, this is the quote from Aljazeera, but they were not the only one giving this.

The Turkish government blames the failed coup attempt on Fethullah Gulen, a Turkish preacher and businessman who has lived in self-imposed exile in the United States since 1999. So as we accept that the Gülen movement is classified as a terrorist organization by Turkey under the assigned names Gülenist Terror Organisation (Fethullahçı Terör Örgütü, FETÖ) or Parallel State Organisation (Paralel Devlet Yapılanması, PDY), we see the link offered, yet another path in this is “MIT officials admitted that they received the very first intelligence report about a possible attack on July 15, only hours before their own headquarters was under heavy artillery fire“, as well as “As of today, more than 100,000 people have been sacked or suspended and 50,000 arrested in an unprecedented crackdown. The government has deemed the crackdown necessary to ‘root out all coup supporters from the state apparatus’“. When we consider those parts, we need to realise that the Millî İstihbarat Teşkilatı (MİT) was completely out of any loop, which makes Turkish Intelligence not just a flawed setting, it would implicate that it has limited counter terrorism options and no resources to speak of (in intelligence terms).

In opposition to this, there would be enough data to offer that it was an internal issue from within the Turkish military and whatever opposes Recep Tayyip Erdoğan in Turkey got a fat target painted on them. This fills and completes the view we need to have of Turkey much better. In support of this we need to consider that one exiled cleric could not have orchestrated the military support that would have been required and that was seen in action. The width of the Turkish military acting seems to be that of an internal star chamber than a clerical imprint on the military, the latter would have given more visibility to other ranking officers within the Turkish armed forces. As this becomes more and more visible and accepted, we are treated to the view on the unacceptable acts against the Kurds yet again, which followed the Turkish official view of the coup that they ‘survived’.

So in this light the setting for March will be one that is a puzzle. You see as Turkey keeps on playing this game, their credibility will only go down further. The European Council on Foreign Relations (ECFR) (at http://www.ecfr.eu/article/essay_eu_turkey_relations_the_beginning_of_the_end_7226) gives us: “Both Turkey and the EU need the continuation of this partnership. It is a matter of definition whether this partnership will be in the form of full membership or in a different form. What is important is not to break the process and not to cause alienation. The need for sustainable EU-Turkey relations obliges both sides to take steps to honour their commitment to integration“, we can accept that, but at this point, is continuation feasible? We see the shifting language that shows that Germany is less and less taken with Turkey, now siding more and more with France on the anti-Turkey alliance. It gets worse for Turkey as we now hear: “A Turkish court on Wednesday denied entry to the German ambassador to Ankara to the hearing of Selahattin Demirtas, the former co-leader of the pro-Kurdish Peoples’ Democratic Party (HDP)“, which we get from http://www.dw.com/en/turkish-court-denies-german-ambassador-entry-to-kurdish-politicians-trial/a-42579957, even as France is trying to work with Turkey regarding a ‘diplomatic road map‘ on Syria, the sounds of accusation of Turkey violating international law was not far behind it, so there is pressures on nearly every level. Only 12 hours ago, Deutsche Welle gave us “Even NATO Secretary-General Jens Stoltenberg wouldn’t hazard a guess ahead of this week’s defense ministers’ meeting. He said Turkey needs to clarify the status of the contract” (at http://www.dw.com/en/turkish-russian-missile-deal-puts-nato-on-edge/a-42572965), as I said earlier, the language is changing. As we see ‘Turkey needs to clarify the status of the contract‘ that it is about cancelling the contract? Yet in that respect, what would Turkey demand in return? How much is that going to cost and where does that invoice end up? You see, when you consider Reuters with ‘U.S. tells NATO allies spending plans still falling short‘ (at https://www.reuters.com/article/us-usa-trump-nato/u-s-tells-nato-allies-spending-plans-still-falling-short-idUSKCN1FY013), where we see “Spain has said it will not meet the 2024 target. Belgium, the Netherlands, Luxembourg, Italy, Portugal, Norway and Denmark are also lagging. Hungary expects to meet the goal only by 2026“, as well as “France will increase its defense spending by more than a third between 2017 and 2025, but Germany, is not expected to reach the 2 percent target by 2024“, this gives us that the three large economic anchors of the European Union cannot get there. It is these elements that make me wonder on the changing language involving Turkey. From a setting that would have given a clear rejection of Turkey becoming an EU member, we see the setting of new talks, new events and more ‘collaboration’ projects. I think that France is already learning the hard way that this path leads to nowhere, but the others need Turkey to be a spender here, and Erdogan is using that tactic to his own advantage, because once they are in, you cannot throw them out anymore (the EU that is), not even willingly as the UK is learning the hard way. Even as we accept that to some extent Turkey helps to reduce an influx of Syrian and other migrants and refugees into the EU bloc, the question is to what extent and for which purpose, because once these refugees make it into Turkey, Turkey is either stuck with them or they must ‘divert’ them to another place.

In this, in an earlier blog I mentioned the Visa Free EU travel for Turkey and that they had not met the demands. So as we see “Last week, Turkey manifested determination to restart a new chapter in its ailing relationship with the European bloc by submitting a paper detailing Turkey’s roadmap for the fulfilment of the remaining seven benchmarks of 72 criteria” we need to get worried on the non-committed acts from the EU on the matter which had not been met. It seems like Brussels is trying to find any way to either delay it all or give Turkey a pass, which would be disastrous for several players. This is seen in several articles, in this case the Irish Times gives us: “Instead of formally ending EU membership talks, Dr Merkel said she would look at imposing “real restrictions on economic contact” including through the European Investment Bank, EU aid, World Bank and by blocking talks on expanding Turkey’s customs union agreement with the EU, a move that could hit billions of euro in potential Turkish exports“, whilst the EU themselves was ‘dismissive of call for end to Turkey accession talks‘, stating that this is for the heads of government, European Commission says, so the EU revels in inaction and restrictions in other ways. This is a dangerous and explosive combination.

So even as one issue was the contention in the counter terrorism benchmark which has been the definition of terrorism in the counter-terrorism law that Turkey was called repeatedly to amend in order to comply with European democratic and judicial standards. Now, according to reports, a legal provision will be added soon to the current anti-terror law stating that “any critical expression that does not exceed the boundaries of journalism does not constitute a crime“, how is that enough? As we see the Kurdish issues as shown earlier as well as a new complete failure by the Millî İstihbarat Teşkilatı (MİT) should leave anyone a clear indication that not only is the counter-terrorism failing, there is an increased worry that Turkey does not really comprehends the term ‘counter-terrorism’, in support of that fact, or evidence to that, you should talk to the journalists Deniz Yücel, Huseyin Akyol, Ragip Duran, Ayse Duzkan, and Huseyin Bektas. Oh no, you can’t they are in jail! Turkey could have had a genuine excuse, but they lost that option when they denied the German ambassador to Turkey access to the court proceedings. That alone should be regarded as evidence to dismiss the ascension of Turkey to the EU.

And whilst the entire language on Turkey seems to be in a fluid state, the Brexit noise goes on, whilst some are relying on fear-mongering with noise like: “You could have a permanent Operation Stack for 20 miles” regarding shipping between the UK and the EU, ‘could‘ being the operative word. So how large was that ‘stack’ in the 70’s and 80’s? In addition we see the Financial Times (at https://www.ft.com/content/0a8799c6-1190-11e8-940e-08320fc2a277) give us: “Brussels is urging EU leaders to consider radical options such as raiding corporate tax receipts and money raised from selling carbon emission permits to fill a €15bn a year budget hole left by Brexit“, in addition it gives us: “the need to find more money for priorities such as border control and joint defence, mean negotiations are likely to be even more poisonous than previous EU tussles over money“, whilst we see “Some member states don’t want to pay more but they want to do more. Other member states want to receive more“, these elements show the desperate state the EU is in now, that whilst Mario Draghi has printed almost 2 trillion Euro in money for ‘Quantative Easing‘. This relates directly to Turkey, because it shows the desperate EU trying to open a many doors as possible, this is how I see the impact of not dismissing Turkey as an EU member at present. So when we see “impose tougher conditions on access to EU funds as a way to force the likes of Poland and Hungary to comply with EU policies on the rule of law and on asylum” as is a given view on the two needing more money, wanting a stronger voice but cannot contribute. Add to that the earlier pressure from the US for NATO member to do more gives a shifted view of the needed activities within the EU, Turkey is seen as the one floating elements that will allow a few players to keep their heads above water, but it is as I personally see it a desperate act from certain short term viewers, that whilst they also know that it will descent EU elements into chaos. As I (again merely a personal view) see it, it would cripple Strasbourg in getting issues resolved and as Turkey fails to comply with humanitarian sides, it could in equal measure become the puppet for Russia for dislodge other item in consideration, an option honoured by perhaps negating some invoices for S-400 systems, spare parts, training and consultancy? It is merely speculative thinking, but would I be wrong? It would work out very well for Turkey, for the other bloc members a lot less so.

A danger that could have been resolved almost 2 years ago, I will let you ponder on the reasons why the EU never negated this danger.

 

Advertisements

Leave a comment

Filed under Finance, Law, Media, Military, Politics

A Turkey problem

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

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

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

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

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

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

Did I oversimplify issues again?

 

Leave a comment

Filed under Finance, Law, Media, Military, Politics

Patsy Ross and the curse of greed

Yes, we can do all kinds of things in Davos, Switzerland. We can enjoy cheese; we can enjoy the white slopes of Davos and not to mention learn about greed in the World Economic Forum. One article to start with Fortune, who gives us ‘Wilbur Ross Tells Davos: U.S. Is Done ‘Being a Patsy’ on Trade‘ (at http://fortune.com/2018/01/24/davos-2018-trump-wilbur-ross-trade-war-tariff/). The article brings up a few things and has a great ending (from a comedy point of view). With: “Ross also issued a warning against misinterpreting the Trump administration’s hardline approach to trade, in what could foretell what Trump himself will communicate to the Davos crowd on Friday. “We don’t intend to abrogate leadership,” Ross said. “Leadership is different from being a sucker and being a patsy.”“, you see if that was actually true than you would have had fairness in mind with the Trans Pacific Partnership. That document is a joke giving all the power to business and leave governments running for the hills as they get sued for diminished profits, in addition the TPP would not have given additional powers to patents leaving the option of generic medication in the basement. That cursed piece of parchment should never have been allowed to be completed to the degree it was, in secret and without proper open consultation. Now, we agree and accept that this was basically before the Trump administration and they rightfully opposed it, yet the dangers that the people of 12 nations are exposed to and exploited by is just too large. Consider the quote “Critics on the left also said the TPP would pave the way for companies to sue governments that change policy on, say, health and education to favour state-provided services“, since when is any corporation allowed to endanger the health of people by suing for damages? How greedy and stupid does a government need to get by endangering their citizens to such a setting? The full text (at https://www.mfat.govt.nz/en/about-us/who-we-are/treaties/trans-pacific-partnership-agreement-tpp/text-of-the-trans-pacific-partnership), also gives other dangers. Part of the deal was that, large pharmaceutical corporations (most of them American) want to extend the life of their patents, arguing that having spent billions to bring their research to fruition they should be entitled to a just reward so they can invest the profits into developing new medicines, the issue is that that timeframe had been given and they merely want to double that profit as much as possible. Yet in light of an aging population the effect is that generic medication becomes a long term inability driving cost up for the retired population by a lot, in some cases well over 100% more. So as we read that “Time Inc. chief content officer Alan Murray, agreed that pacts brokered decades ago “need a facelift,”“, the people are not given a fair shake in all this, it is all about the large corporations, whilst their tax accountability is off the table, making the forum a very imbalanced exercise. So as we saw the Patsy mention of Wilbur Ross, we are treated to no approach to keep the ‘jokers’ of Wall Street in check, there the political wings all fall silent and that is where the kneejerk dangers are. The law has failed the people, the Wall Street gains are beyond normal whilst those getting the cash seem to remains non-taxable, or taxable to merely the smallest possible degree. In this The Financial Times has an additional setting (at https://www.ft.com/content/cb18f700-011b-11e8-9650-9c0ad2d7c5b5). The emphasis on TTIP over TTP, as well as In this we see that he “repeated a willingness to revive negotiations on trade with the European Union“, yet left the United Kingdom unmentioned, which I see is merely a shot across the bow. In this Davos has been making jabs in that direction for 2 days now. In a place where every word and specific mentions are essential, it comes with clear setting on poses, stances and hand gestures, we see the total disregard and consideration regarding Brexit, or Brexit mentions in the same way that toilet paper advertises ‘softness’.

Finally, there is a continuation from yesterday’s blog as we see (at https://www.theguardian.com/business/live/2018/jan/24/davos-2018-merkel-macron-mnuchin-inequality-slavery-wef-day-2-live), the mention “Macron hails French recovery“, which sounds nice, but there is no evidence on that, only overly optimistic views for 2018. So as France still had 9.8% unemployment in July 2017, that against 4.2% in the UK and 3.6% in Germany, France is a long way away from hailing ‘recovery’. In addition, it was the view of Natixis Research that was used by Reuters to give us: “With growing optimism on the health of the Euro zone economy and its equity markets, it’s easy to forget that GDP growth in some countries such as France is somewhat below what one would expect at this stage in the cycle, with forecasts of under 2 percent for 2017 and 2018. According to Natixis’ research, structural unemployment and the rise in numbers of young people with no qualifications are a drag on the Gallic economy and will keep holding it back. “When the structural unemployment rate is as high as in France currently (more than 9%), recruitment difficulties will very prematurely stop growth,” Patrick Artus, who heads research at the French bank“, as such he uses a more academic stance, but our views partially align, France is not out of the woods yet and the Draghi Stimulus will still hit France as well because that money needs to come from somewhere in the end and France stands well over minus 2 trillion Euro. That is the part all the players are ignoring whilst the paths are made for large corporations, whilst the need to dam the flow through proper corporate taxation. None of that is properly in place in Europe (and the UK needs to fix a few things too). And as the people get to hear from Former UK Prime Minister Tony Blair on how Brexit is a mistake, the first part of my prediction comes out. I only need to see one of the five as mentioned last week to make a similar remark to make the prediction I made over a week ago come true. Yet in all this there is also a benefit to get soon enough. You see as the US is now hitting others with steep tariff increases, he is directly giving the danger that all the others (probably with the exception of Japan), will hit back by doing the same to video games, when that happens America will get a massive hit to that $130 billion market which is predominantly American, in this the tariffs would equally hit the digital sold titles. In light of the numbers, The US is making a dangerous move that could hit them harder than they bargained for.

The fact that Digital game revenue surpassed $10 billion in December 2017 alone gives rise to the awkwardly bad decision that the US set itself up for. We will see if the last day of Davos gives us a few more pointers on how large corporations will see more opportunities come your way that is if we can believe Breitbart. That is how we got the news from the Washington Post with ‘Breitbart called Davos a collective of ‘leftist elites’ and ‘corporate cronies.’ Then Trump said he was going’, the article is not really giving us anything besides the views that Breitbart has and therefore not really informative, but they seem to touch on the part that I found interesting, is Davos about upbeat presentations, or is it the one informal place where certain power players can align their presentations because there will be large shifts in 2018, France seems to be starting the events that will hit the people in Europe, in this Reuters also reported on Italy’s view with: “Italian Prime Minister Paolo Gentiloni sent a message to US President Donald Trump on Wednesday (Jan 24) that leaders can defend their countries’ interests but must respect existing international agreements”, which is a truth, yet as several sides are hitting the European Community, it is a view that raises other questions on current international agreements .

In the end, Fortune dot come gives us two additional parts. The love of blockchain and the need for smart data will be driving elements over the next few years. None of that was a real surprise, but the amount of push towards blockchain was a larger surprise that I thought it would be. Forbes (at https://www.forbes.com/sites/dantedisparte/2018/01/28/one-thing-is-clear-from-davos-blockchain-is-out-of-beta), the power is seen in “While Blockchain and digital assets were widely featured on the main stage at Davos, perhaps the most insightful conversations were taking place in standing room only events hosted by groups like the Global Blockchain Business Council, whose CEO, Jamie Smith, and chairman, Tomicah Tillemann, have emerged as global emissaries helping Blockchain go mainstream. Indeed, Jamie Smith has made it her personal mission to be the explainer-in-chief of this powerful technology so that more of the world can grasp its potential”. I am still not convinced! You see, the Blockchain is clever and it is one that has great potential, yet the push of a solution that is unregulated and in addition to that it is an option for others to skate around the laws, because the use of blockchain will raise legislation to another level. This was partially discussed in the Business Insider on October 20th (at http://www.businessinsider.com/blockchain-cryptocurrency-regulations-us-global-2017-10). With: “Blockchain is the technology of choice for many start-ups. As per research by Outlier Ventures Research Team in May to June of 2016, 200 new start-ups were added in six weeks. Businesses and start-ups popped up around the virtual technology and sprouted with lightning speed. While many countries are supporting the development of the digital currencies, thus encouraging new ways of transacting and new businesses to bud, there are some that have boycotted the new technology, deeming it as an illegal negative disruption that brings financial instability and global economic unrest”. There is no denying the view that Davos is spreading, yet the push (partially implied in the Business Insider) to get Blockchain approved and mainstream by 2025 is a larger issue than some realise. The banking industry that took close to two decades to accept ATM’s to the degree it did in the end is now setting a new digital path in less than 10. That worries me, not because of the digital leap forward, but because of WHY they are doing it and I feel certain that we will see more and more revelations in the next 2 years.

It is my personal feeling that it is a greed driven path and that never spells any good for the people at large around, because they end up paying for it all, one way or another.

 

Leave a comment

Filed under Finance, IT, Law, Media, Politics, Science

A linguistic joke

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

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

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

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

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

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

 

Leave a comment

Filed under Finance, Law, Media, Politics

The desperate just won’t stop

We have seen so much about Brexit, it is getting ridiculous. Even the Guardian is giving us loads of fear mongering articles. Now, their partial valid defence is that this is what is being said, so that is fair enough, but have you all considered the sources?

For example ‘No-deal Brexit would cost EU economy £100bn, report claims‘ (at https://www.theguardian.com/politics/2018/jan/15/no-deal-brexit-would-cost-eu-economy-100bn-report-claims). Here we see “lack of trade deal would cost UK around £125bn“, so lets take a look at the source ‘Oxford Economics’, from their own claim: “Oxford Economics was founded in 1981 as a commercial venture“, which is fair enough, there is nothing wrong with a commercial venture. Yet now also consider “Our worldwide client base now comprises over 1,500 international organisations, including leading multinational companies and financial institutions“, this is an issue because none of them want Brexit, their need for greed is fuelled best when they have open borders and no tax accountability. In addition, it has been shown that the small businesses would thrive a lot better when the large corporate advantage is taken away and the smaller players are on an equal playing field. Small Business (at http://smallbusiness.co.uk/smes-see-brexit-opportunity-trade-rises-2540071/), gives us “Of the 500 SME owners and senior managers surveyed, two-thirds say they feel confident about doing business overseas (67 per cent). Since the EU referendum, almost half have increased international sales (48 per cent), while 36 per cent expect to start or increase exports in the next twelve months“, now this is merely one source, so this is not gospel, yet the clarity that we have seen is that all large corporations are pushing for Bremain, is because of the singular market, the part where these large corporations have an advantage over all other players.

We see this even today in the Guardian. With “Britain will not be allowed full access to European Union markets, including financial services, unless it pays into the EU budget and accepts all its rules” it is playing a dangerous game. So why exactly should the UK buy into the stupidity of Mario Draghi? The European system that is flawed and discriminatory towards the larger players. In addition there is “Asked whether France would seek to “punish” Britain, by insisting financial services should not be included in a UK-EU trade deal after Brexit, Macron said, “I’m not here to punish or reward”” (at https://www.theguardian.com/politics/2018/jan/18/macron-rebuffs-city-deal-after-brexit-unless-uk-pays-into-eu-budget). You see, France is on the abyss, so they want any advantage they can get. Yet, in equal measure these nations, not just the UK can no longer allow the utter irresponsibility that the EU has been dealing. Governments did this to themselves. With France at €2.1T, a debt that is 32,360 times its population. Italy at €2.2T, with 37,000 times its population and Germany with €2.0T, with 24,750 times its population. In all this the debts are beyond normal and Europe is not listening. We get excuse after excuse. It is unable to stop corporate greed and we see nations giving larger corporations tax exemption after tax exemption, whilst the population have been and is still living on a lowered quality of life, that whilst the current situation is forcing people to live and work more and more until in their deep 70’s, because retirement before 70 is now no longer a feasible option, the cost of the present quality of life has increased by too much. The UK is not in a better state, but is trying to deal with the mounting debts. You see, the quote “The alternative was a Canada-style trade deal, he said, which could include financial services, but would not include access “on the same level” as existing EU members” is actually true, is was always a reality, but the larger corporations do not want that, they need their mistresses, their wealth and their non-accountability with Brexit that is no longer an option and these people could face serious consequences in the UK, they do not want that, but in equal measure leaving 60 million consumers and leaving those people to the small enterprises is equally dangerous, because the moment the UK shows success, the EU will almost instantly fall apart. When we look at Full Fact (at https://fullfact.org/europe/our-eu-membership-fee-55-million/) we see: “The UK pays more into the EU budget than it gets back. In 2016 the UK government paid £13.1 billion to the EU budget, and EU spending on the UK was forecast to be £4.5 billion. So the UK’s ‘net contribution’ was estimated at about £8.6 billion. Each year the UK gets a discount on its contributions to the EU, the ‘rebate’ worth almost £4 billion last year. Without it the UK would have been liable for £17 billion in contributions“, so there are consequences, yet who EXACTLY would be liable for those contributions? How many corporations are doing business with Europe? How much in taxation was paid? Those clear lists are not coming forward are they?

Then we see: “A membership fee isn’t the same as the economic cost or benefit. Being in the EU costs money but does it also create trade, jobs and investment that are worth more?” Here we see a truth on one side, but who exactly gets the trade benefit? Where are those jobs exactly? And these investments, how do they pan out in wealth and taxation?

So, you see, these so called Financial Services which are they? Hedge funds, Banks, Wealth management, crediting firm and debt collection? So which Financial Services are the ones YOU enjoy? At which point do you think that they should enjoy lessened fees? The NY Times is giving us ‘Britain and France Agree on Deals to Limit Brexit Fallout‘ (at https://www.nytimes.com/2018/01/18/world/europe/britain-france-brexit-meeting.html), it is one point of view. I see it in a different way. When you consider the quote: “Mrs. May agreed to pay an additional $62 million to help reinforce security around the French port city of Calais, which has been a gathering point for migrants seeking to enter Britain. That money will be spent on fencing, CCTV cameras and infrared detection technology” it is merely to cost of governing and would have been required no matter what. Today’s events on a global scale show that. To set a strong defence is an essential need for both players, even as it is merely shown as a benefit for the UK. The truth is that these people went through France, for the longest of times and they were not seen as a threat, a disaster and are actually a failure for the DGSE and the French intelligence at present. With the need for that data the DGSE can push forward, yet both nations have stretched budgets and France is in a far worse state than the UK is. The Financial Times gave that in 2016 when we saw: “The Cours des Comptes found the likelihood of pegging the deficit at 2.7 per cent of gross domestic product for 2017 was “very uncertain”, pointing at new spending commitments in 2016 and the use of overly optimistic growth figures when planning public finances” (at https://www.ft.com/content/0d83afca-3e3d-11e6-9f2c-36b487ebd80a), the use of overly optimistic growth figures are a global failure and partially the reason why Europe is in such a dismal state. So as we are ‘treated‘ to a presented ‘bettered economy‘ we still see that the people forget that the team of Mario Draghi is printing $60 billion euro’s a month and spending this money. Yes, if I get to do that, my economy would look good too and this has been down with much higher figures for over two years. Now we see (at https://www.reuters.com/article/ecb-banks-ethics/eu-ombudsman-urges-ecbs-draghi-to-leave-g30-club-of-financiers-idUSL8N1PB5FC) that Mario Draghi is being told to “give up his membership of the Group of 30 talking shop of financiers, as it risked hurting public confidence in the ECB’s independence, the European Union’s ombudsman said on Wednesday“. It is not merely the lack of independence, I would like to see a list of the 2 trillion Euro and how many of these 30 got a part benefit in this. This puts the issue of Mark Carney, Governor of the Bank of England in a dangerous place, because if there is enough evidence and the Governor of the Bank of England did not advice parliament, we get an issue on parliament getting slapped on the European fee’s on Brexit, whilst on the other side 29 bankers directly benefited on the advance knowledge as to where the benefits went to and how optionally up to 39 people directly benefited in growth of wealth here. A European machine where the driver sees what’s coming and had the benefit of diminishing the dangers and damage for him and the 29 people in first class, a dangerous premise to say the least.

And again and again we see how the larger corporations are now desperate to unfold Brexit as much as possible so that their gravy train continues just a few stops more, so until their reign ends. Whatever comes after this is the problem for the next player, they will not care.

So when UKIP stated: ‘let’s spend it on healthcare‘ they were not wrong, the problem is that there are too many powerful players trying to prevent this, because their maximised golden parachute depends on stopping that. So basically, their good intention was folly from the very beginning. Now we see that the bankers were always leading conversations with the one group that was ‘presented’ to be independent.

Now I am taking a step back. I found a paper called ‘SME Performance: The Role of Networking, Innovation Breadth, and Business Model Design‘ which I will try to attach at the end. It gave me a few things, but the paper, which is an amazingly good read, gives us something that I had not initially considered. On page 97 we see some considerations, yet as we realise the descriptive around it “Nine measures were created to test hypotheses: innovation breadth, firm performance (including efficiency and effectiveness), networks, age, size, market concentration and competition. Four of the measures were presented as categorical data in the dataset, and used as such in the regression analyses. These include age (number of years the business have been in operation regardless of 96 changes in ownership), size (number of employees), market share and number of competitors. The other five measures had to be calculated. Figure 4.2 provides an overview of the measurement operationalisation and includes descriptive and frequency statistics“, now consider “Networks 2005 (Nine Variables) (0.738)” with the following setting:

  1. External Accountants (0 = 20.95%; 1 = 41.01%; 2 = 38.05%)b
  2. Financial advisors or banks (0 = 53.03%; 1 = 31.29%; 2 = 15.69%)b
  3. Solicitors (0 = 59.3%; 1 = 28.1%; 2 = 12.59%)a
  4. Business management consultants (0 = 85.95%; 1 = 9.15%; 2 = 4.9%)b
  5. Others in same industry (0 = 53.78%; 1 = 27.44%; 2 = 18.78%)b
  6. Industry Association/Chamber of commerce (0 = 77.64%; 1 = 14.41%; 2 = 7.95%)b
  7. Australian Taxation Office (0 = 64.21%; 1 = 28.1%; 2 = 7.69%)b
  8. Other government organisations (0 = 76.31%; 1 = 17.1%; 2 = 6.58%)b
  9. Other (0 = 98.98%; 1 = 1.02%; 2 = 0%)

Where: 0 = Never, 1 = 1-3 times, 2 = More than 3 times

Now consider that there is a group of 30 bankers go are allegedly getting the heads up of certain changes and directions. So the large corporations are getting an additional boost to maximise their standing whilst those not in the ‘friends group‘ are actually in a disadvantaged position. In Discriminant analyses it is sometimes seen as the Independent variable that via the intervening variable gets us to the dependent variable. So the intervening variable is setting the stage for tolerance towards the dependent variable. In that same light, we can see the group of 30 as the intervening variable, now not as a level of tolerance, but as the intervening factor that takes the cream of the complete load, so as one would expect the financial sector to get milk, where 15% is the milk is cream, the 85% is accepted because it comes with 15% cream, which is the valued profit, or what some would call the ‘easy money’ in all this. Now we see the alleged situation of a group of 30, so consider the European Banking Federation with at the beginning of 2017 with 6,596 bankers. Now consider that the cream is optionally diminished by 30%-60%, so now we see a disjointed amount of cream and decisions are getting made on overly optimistic figures. Is that not an interesting view? So yes, one can argue that any quality debt collector is looking at an optional golden age, where in all decent and ethical levels they would be acting correctly, whilst the people were given a misdirected setting from the beginning. It does not absolve them from responsibility, but as we see on how the people at large were presented the implied 4% growth, whilst certain players knew that it would never go beyond 1.2%, the game looks to have been rigged from the very beginning.

So when we read at Reuters that there are issues of ‘maladministration‘ and a request for ‘stricter rules‘ the fact that this has optionally been going on for 15 years comes a little late, and now we see people complaining on Brexit? Why would anyone want to be in a game that is this rigged? So in this view, the response “An ECB spokesman said the central bank had taken note of the ombudsman’s recommendations and would respond in due course“, is a joke at the smallest setting and a huge betrayal of the European population at the most marginal of settings.

So when we now consider the Finews dot Asia (at https://www.finews.asia/finance/26317-hna-desperate-to-find-cash), we should see ‘HNA: Desperate to Find Cash‘ in a different light. With “HNA Group, the Chinese conglomerate that is also the largest shareholder of Deutsche Bank, is using all its imagination to service the ballooning mountain of debt“, as well as “HNA Group, which has about $100 billion in debt, has been scrambling for months to raise cash to service the burden“, we start to see the dangers that the banks are facing. They have gone past the safe point and in this the people are about to get a really rude awakening. With “as Citigroup, Bank of America, Morgan Stanley and Goldman Sachs either cut business relations or told their bankers not to write new business with the Chinese firm” we see the mention of New Business, but how much is outstanding? And when this collapses and hits Europe and the Deutsche Bank to the degree it could, we now see the truth of what I stated two years ago that the delays of Brexit had taken too long. We are running out of time, we see slowly how my predictions are coming to pass one by one. When the Deutsche bank gets hit with this the impact of Germany will be beyond what they expected and that will directly hit France and Italy, Italy will not recover, France just might, but at great expense. So that large barge I discussed in ‘A noun of non-profit‘ (at https://lawlordtobe.com/2013/05/15/a-noun-of-non-profit/) on the 15th of May 2013, could come to pass less than 5 years later (two years after I expected it though). With “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” I made a setting that has been proven correctly, yet the sea was kept stable by pouring large amounts of oil on it (the ECB stimulus, which is now about 2.5 trillion Euro). So as time was gained, the situation was never resolved as nations could not get their debt under control. Now we see that the presented situation was never correct because 30 players had access to a shortcut. What a life the Europeans get to live in!

The desperate will never stop, because they have too much to lose, so until the people revolt into an election that takes these greed driven players out of the game, the UK remains a lot better of outside of that single market and they better be fast about it, because as long as they are into that group the UK has a responsibility to pay for the damages that the ECB is pouring onto its population.

So when the voters decide to keep the desperate in business, they better realise that they will have no rights to complain when it collapses, and they only have themselves, not their government to blame when it does.

SME Performance: The Role of Networking, Innovation Breadth, and Business Model Design

Leave a comment

Filed under Finance, Law, Media, Politics

Poly….what? Politics!

It is almost a week ago, yet the news is still rustling through the Middle Eastern meadows. The news is partially all over it. Yet, it is the Business Insider who gave us ‘a plot to shore up the country’s depleted coffers’ (at http://www.businessinsider.com/saudi-arabia-corruption-crackdown-looks-like-a-plot-to-plug-deficit-2017-12), Ambrose Carey makes an interesting point here. The beginning quote “Now a more probable motive for Crown Prince Mohammed bin Salman’s unprecedented detention of members of the country’s rich elite is emerging. Reports suggest that detainees are signing away cash and assets to secure their freedom in what looks like an unorthodox bid to plug the kingdom’s gaping budget deficit” could be a given truth. When we consider the Guardian last week with ‘Saudi prince Miteb bin Abdullah pays $1bn in corruption settlement‘, some of us thought that it was interesting not just that the counts of corruption had already been investigated, the idea that there was a ‘get out of jail card‘ for a mere $1,000,000,000 is equally stunning, that I beside the fact that the sum has been agreed upon and that the head of the Saudi National Guard is apparently still smiling after having paid the amount. In light of one of the accusations “awarding contracts to his own firms, including a $10bn deal for walkie talkies and bulletproof military gear worth billions of Saudi riyals” we could see that the price is interestingly light. So does the Business insider have a case?

Well, when we consider how the oil prices have slumped from the almighty $135 to $58 we all have to wonder how the impact on the long term has been. pumping oil might be like printing money at your own convenience, but once the spending spree and the high rises are there, the long term issue is that oil is at 42% of what was and upping production by 193% is just not realistic in the long term. Yet there is another worry. the quote “a huge budget deficit, which stood at $79 billion in 2016. The government has had to use foreign reserves to help cover the revenue shortfall, with the former shrinking by about a third over the last three years. The recession has forced MbS to rein back public spending, alarming cosseted Saudis long accustomed to cradle-to-grave subsidies” does not give it. Even as that is merely the deficit, that and the selling of domestic debt in July gives rise to thoughts, yet we need to wonder how inflated this issue is, as it seems to be presented. Lets not forget that it is less than 10% of the Greek debt and unlike Greece, Saudi Arabia is still getting income from the oil fields. So the need to panic should not be there. And lets face it, who is actually panicking?

Even as the Business Insider is making a nice case. I fear I cannot agree on some of the ‘findings‘ and ‘assumed speculations‘ that they offer. With “So, in all likelihood, MbS will struggle to generate the money he needs. Worse still for him, his actions could have deleterious consequences for the economy. While the acquisition of assets and cash is likely to play well with ordinary Saudis weary of corruption amongst the royals and the business elite, it may unnerve already jittery foreign investors whose engagement is critical to the Crown Prince’s economic plans. Though allies have sought to portray the detentions as an anti-graft campaign aimed at cleaning up the corporate landscape, its apparently arbitrary nature and disregard for property rights and due process will worry the investment community“. You see, it might be correct to some extent, but knowing the greed that some have for mere millions, roughly 99.32554% of that population will not run away from optional billions, that is a given you can take to the bank. From my own point of view, Crown Prince Mohammed bin Salman can still have it all, the timeline might slip a little, but there are clear signs that there are options to grow opportunity within Saudi Arabia. They still have options to rival Al Jazeera if certain censoring is changed, By investing into tertiary degrees for Saudi’s its dependency for foreign workers will go down, which would be a massive boost for Saudi Arabia and as Saudi Arabia grows its entertainment network it can start opening doors on setting a 5G environment which will have them being amongst those leading the charge in the next mobile evolution which will enable a lot more industry all over the Middle East. In this aging day, pharmaceutical options seem to be the next step. There is no way it can compete with India, but in partnership with India they will have options to grow this industry internally. It seems like that need is too small for Saudi Arabia, yet with 28 million people it could profit by having an industry that is mainly for export within the Middle East that is comprised of 410 million people. That is still a large market that cannot be ignored and as the quality is proven and the export grows, Saudi Arabia could see a drastically reduced need for oil soon thereafter. There are more technology options for Saudi Arabia to enjoy, but the clear path of larger growth has been proven on several counts in several nations to be within the mobile and pharmaceutical industry and that could be the growing start for an entire next generation, because these two fields will have an almost exponential need for Patent lawyers, which means that the legal field will be pushed into revolutionary growth soon after that. Mind you, not merely a local growth, the IP field would enable global growth for Saudi Arabia as well and as this field is set in stone (or marble) it will attract even more foreign investors and opportunity seekers. All issues clearly set in this field and in this the Business Insider is still on the horse that states “The Crown Prince has staked his reputation on the success of an ambitious economic transformation plan, Vision 2030, to wean the country off its dependence on oil, but he needs to fund planned reforms and projects. He was banking on a part-floatation of the national oil company Aramco, which appears to have been postponed for at least a year. The ruthless purge and financial strong-arming could now deter the very western investors and regulators needed to move forward with the sell-off“, yet there is no given that other fields need to stop getting a foothold and as these two (or three) elements are grown within Saudi Arabia, other players will find options to get their own kind of fuzzy drink labelled ‘profit’ in their hands and as such they will still be fighting for a seat at this table called vision 2030. Even as the venue per plate is much higher than expected, the long terms gains are beyond what they are able to make now. With US deficits on the rise, the EU currently has 6 nations that are at risk of breaking the deficit rule (France, Italy, Belgium, Austria, Portugal and Slovenia), so there will be consequences there too, which would imply diminished profit, so those players are looking for seats at tables with loads of gain and that is where Saudi Arabia is one of the few that would accommodate their needs. So as such, Saudi Arabia has options if they have optional controls for greedy mobs. And even as there will be good news stories coming from Strasbourg, there will be eyes on the EU as it will likely dial down the consequences for these six nations. In addition with the Mario Draghi stimulus game where we will see a likely extension into 2018 yet at a lessened 30 billion a month implies that Europe will be diving into close to half a trillion of additional debt, with the likely result that there will be nothing to show for it, no actual economic growth, so in all this debt driven society, Saudi Arabia could have a larger windfall if it plays its cards right. Once certain plays are in place, Saudi Arabia would be more and more primed for export and exporting opportunities to places that ignored and neglected its own infrastructure. In this the US would have to cut costs and corners to a level never seen before as it optionally faces the ridicule for being at best at par and more likely to stray behind Saudi Arabia in the 5G mobile networking, a field they were once the only one dominating in. What a massive set back that will be for the old USA. In this Crown Prince Mohammed bin Salman could have the forefront by preferring the Polytechnic sciences over Politics. In his role he cannot avoid politics, but by focussing on Science and technology he has the option to propel Saudi Arabia beyond what others thought possible. So even as it has its issues with deficits and treasury needs, can we rely on the Business Insider that it is so much worse than we expect? I for one am not convinced that this is the case. I might be wrong, but the fact that the larger players are still willing to sell their first born for a seat at that table makes me think that there are a lot more opportunities for investors than many perceive. the question becomes does the House of Saud feel safe letting these opportunities go beyond the national borders to other players? It is always a rocky road to travel. In the end I do believe that it is more about the speed of growth and less about who owns the growth. that should keep plenty of investors tallying their optional profits for some time to come.

Leave a comment

Filed under Finance, Media, Politics, Science

A Greek Fatality

Greece is in a dubious place. On one side it is trying to advertise the appeal to invest in Greece, whilst on the other side it is trying to emphasize that discussions with Turkey and its ascension into the EU must continue. We might go with what we see in the AFP, yet there with “ending Turkey’s accession talks would be a strategic mistake that would maybe benefit only for Erdogan“; Turkey merely ended their own options. The rules were clear, you either adhere to certain standards, or you are not invited. The fact that others must give Turkey the umpteenth chance merely shows how desperate the EU has become. So when we see “Turkey is an important regional power and should remain engaged, added Tsipras, but also called on Turkey to respect international law and stop provocations“, we need to remind Alexis Tsipras that he is in not such a great place, so fathering solutions for optional investments into Greece is a slightly too dangerous a game to play. France is in a similar place. With “French President Emmanuel Macron said Turkey remained a vital partner of the European Union and ties should be maintained even if the country had strayed from the EU path, according to a newspaper interview published on Thursday” we see a President Macron that is becoming merely a facilitator for economic exploitation. Perhaps both need to learn the little lesson that many have voiced. “If You Don’t Stand for Something, You’ll Fall for anything“, it is a shallow and sad inheritance that the EU is leaving behind. A place that was high and mighty in what they call morals, whilst they are all about big business exploitation. The entire Turkey endeavour is partial evidence of that. The ignore through inclusion or else, whilst the current members cannot maintain their budgets, have no control over the expedient spending and the EU in dozens of trillions of debt, add to that an ECB that prints unsupported billions per month and we get a very dangerous situation. Reuters gives us in addition with “France’s Macron, a centrist, was elected in May on a pro-EU platform that included pledges to create a euro zone budget that would be voted through by a euro zone parliament and supervised by a euro zone finance minister” we are merely treated to a fantasy, a fairy tale that will not result in any budget, merely less transparency and more spending. It is also a first step to get the ECB with two years of utter irresponsibility of the hook. With “Stournaras said the euro zone should be strengthened because the ECB cannot be the single institution responsible for ensuring the euro zone’s stability nor can it maintain its ultra-loose monetary policy forever” Reuters is treating us to the first whiffs that the ECB plan has failed. It wants some level of contingency whilst not willing to throw the utterly overpaid ECB members in some prison until their flesh rots and their bones have bleached to something that reminds us of the colour white. It is merely a sham, set to get two more issues on the table. The overspending of Greece on the bond market, which will set the Greeks in another setting, which will bring certain facilitators dozens of millions in some bonus and nothing more than that, no solutions or gain towards any solution at all. This whilst adding Turkey to a field of players that we have been very outspoken against. Unless Turkey adheres to some minimum level of standards, levels that have not been met 16 fold, should be barred from the EU table. A collection of nations trying not to see that the game ended, they lost and they are not willing to face consequences. The good side is that as Brexit continues, every continued achievement within the UK will mean that France and Germany will face levels of what might become civil revolt against the hardships the people there will face and the politicians who placed them there sooner and sooner. You see, there are a growing amount of articles regarding the Germans and their new class of working poor. I think it is a little exaggerated, but the truth is not far from there. The US has a growing group of people working two jobs merely to make ends meet, for the most they are barely above the poverty line. Yes, that is right, two full time jobs merely to stay barely above poverty. The nations that is claiming to be in such good economic growth is handling it’s one percent by making sure that the disabling of the lower 40% is growing at a steady pass. The numbers are not that harsh yet, but for the most, that group has not seen clear quality of life improvements for well over a decade and Germany is slowly going into that very same direction. In Germany the poverty group grew by 0.5% in one year. As the news is hiding behind ‘new tools’ and reports, the Financial Times gives us: “I survive but I cannot live,” says Doris, a 71-year-old retired nurse, in the former German coal mining town of Gelsenkirchen. “I have no money to go to the ballet, or even €10 for the cinema. But what really eats me up is that I can’t afford to give presents to my grandchildren” (at https://www.ft.com/content/db8e0b28-7ec3-11e7-9108-edda0bcbc928), it is more than merely a story, or merely a small anecdote. It is the growing concern of many Germans and the rest of the EU is pushing the events under a large carpet, but under that carpet are more and more issues that are becoming visible. Even as jobless rates are going down, poverty rises. As the EU is not giving rise to the dangers that exploitative models like the ‘Uber show’ (and other players like that), we see a growing trend towards legalised slavery. In this Germany is following the trend of the USA, where the bottom 40% of these ‘earners’ have nothing left, no savings, no assets and no future to speak of. In this, the EU has become the one party to ignore its local members to degrees never seen before. So as we laugh loudly at the non-sincerity of people like Mario Draghi, we need to be aware that extremism towards the right is almost a given in whatever comes forward in the next wave of elections.

It is the gap between rich and poor that is becoming the next danger. You see, it surpassed 20% by a fair bit in Germany and only in France is this difference larger, so as President Macron is not able to turn the tide on all the plans he made, we see that the dangers many tried to prevent with quick BS schemes are now at the turning point of blowing up in the faces of all who played this game. Now, we can agree or disagree whether Marine Le Pen would have been the solution, I personally do not think she could have made any better switch, what is an absolute given is that whatever comes next is not going to be that simple. And as more are screaming some ‘balanced’ none ultra-right change, the very real danger is that these speakers will no longer be heard or regarded as some option. In this the Financial Times will soon show how the poor side of the equation will no longer be contributing to the economy, because of health and mere minimum standards. The Greek fatality will come to show us all what happens when non-equality and non-accountability will destroy entire generations as well as any economic options that might have been, merely because greed and exploitation was given too much leeway. A first step in this was shown last week in Greece with “especially the IMF – to push through liberalization as an ingredient for jump-starting the country“, this however is the danger as we see “A five-point agreement, dating to the summer of 2015, between social partners and employers’ groups is already in place, with the highlight being that the specific law (1264/1982) should be modernized, especially in order to preclude “practices of poor implementation”. Conversely, the agreement does not dispute workers’ right to strike and constitutionally protected union activity“, these poor implementations are optionally the dangers to the fact that workers will lose even more rights than they bargained for. As the ECB is about to ‘attack‘ protectionism, we will see a growing amount of ‘entrepreneurial’ options like Uber, that will leave people with a presentation and no reality in a protected way of life. And I mean a certain minimum level where workers should have some protection from exploitation, which is not about to happen. We might agree that Uber was a nice idea, yet when we see that passengers are not insured, that is merely the tip of the iceberg and I am merely looking at drivers that have the best intentions and merely want to make some cash for their family. They are getting less and less; they have to agree to almost insane conditions. Even as we see and agree that Wired and the BBC are giving us an extreme with “London’s latest cut-price Uber rival is being investigated by TfL“, do you think that this is merely one case and the end of it? So as this Taxify is merely one player, hiding behind “it would “always” have lower fares than Uber“, how long until it becomes a wild west? Even as it is stopped operations in London, it is active in 18 countries. So how are they looked at there? How many are part of the EU and how is this so called one EU in any way ready for Wild West companies to make a quick coin and get out after the damage is done? It is that level of failure that we will see in Germany, France and Italy. So as the large three need to find solutions, the quality of life goes straight into the basement and what is left cannot continue. That was the danger from the beginning and the EU and its political branch as it fails yet again. But nobody cares because Draghi and Yellen will blame protectionism and leave the rest to rot (for lack of a better example) as they enjoy 8 figure incomes. It will not hit them.

We can agree that there will be entrepreneurial events, some will find the golden goose others missed and that is fine, but at present as protectionism is low, as poverty is rising whilst there is a diminishing unemployment group, we need to wonder how the EU has failed its Europeans and whilst it will find a deal to remove mere values towards Turkey and tries to facilitate for more markets we see that there is very little left of this so called Economic European bloc of areas. Brexit came slightly too late but it might still be on time to keep British values up and growing, when that is shown France and Germany will run for the nearest exit. That is not a speculation, it is an absolute given, because soon enough the one percent who has had the media at their back, will not have any backing from a group that needs to stay alive and out of the hands of millions upon millions of angry people, people that will demand local solutions from people who can no longer give those solutions, or even give rise to the existence of those solutions. When that happens, Europe will not be a nice place to be for some time. Should you doubt this (always a valid option) that consider that Italy one of the 4 largest economic nations in the EU now has over 1 in 4 in the South of Italy that is in poverty, nationwide it is at 7.6%, the largest since 2005. So as some are in denial, the numbers do not lie and they are growing at an alarming rate, so even as we see news of a stabilised economy, we see that poverty is basically through the roof. Yet Draghi is not held to any of those standards, he keeps on printing money, 60 billion a month, leaving the poverty groups fending for themselves as they are growing. A clear warning that the Greek situation should have given the EU politicians, they basically all ignored it, because they had a PowerPoint presentation stating that it was not so.

The Greek fatality that is soon on our doorstep will force a new way of thinking. Not merely to the creditors, but to hold those in office accountable and prosecutable. The nice part is that in the largest 4 economic EU nations there would be enough votes to push that change, I wonder how many people will reside in EU politics the moment that shift happens. I wonder how the employment contracts change overnight before the legislative change comes through. The last is speculative from my side, but the evidence we have seen so far supports my worst fears.

Bloomberg partially confirms this. With “Eldorado Gold is the largest foreign investor in Greece and its decision comes as the country, which is working on creating a sustainable path to exit its bailout program, tries to lure foreign investments”, yet with ‘delays in acquiring routine permits’ we see that in the years that Syriza has been in power, the simplest parts of infrastructure arte not in place. We see (at https://www.bloomberg.com/news/articles/2017-09-11/eldorado-s-greek-suspension-threatens-country-s-investment-image) that the government is failing in more than one way. With “I’ve been with Eldorado since February and CEO for five months and I haven’t had any hostility from the government, but just haven’t seen progress on permits”, we need to ask serious questions regarding dropping oversight from Greece, whether the Greeks should be allowed on the bonds market at all. You see, if you allure investment without infrastructure, you have nothing. That is the short and sweet of it all and the players in this debacle are talking a lot and not doing anything. Tsipras did not merely fumbled the ball, he forgot that he is on a playing field, he forgot about the dimensions of this field, he forgot about the referee in this and we now see that he is not aware on the rules of the game to participate. A failing on four fronts in one go, in this they claim to be ready without oversight on creditors? Who are you kidding here?

In this we see even more failings from the ECB and the EU, because in the oversight of the funds given to Greece, we see that there was no proper setting for even the largest investors, giving us the clear path that the EU failed even more because they had to be on par with all this. If not, they have given up their right to existence in all this. They could be regarded as the useless pegs that hold up the virtual tent, a tent that only exists in the minds of the Greek governing party and as such, as the tent is a virtual and exists in only their minds, the pegs would actually be redundant. It sounds harsh, but that is the clear evidence that Bloomberg is giving us. So as we now see ‘Shares in Eldorado have fallen 52 percent in the past year and were trading down 6.5 percent at 09:44 am local time in Toronto’, we can argue that Greece and the Greek government might be regarded as liable for a lot more than they anticipated. As such, what other projects would fail and what will the fallout be from these losses? Jobs, income, visibility as well economic progress, all lost in an instant because the Greeks were not ready to commit. It is a Greek fatality with more casualties than most realise and more will come to the view of others. Even as Reuters gives us that the IMF should commit towards Greece, we now see that such a step is ill advised. Why pour money into anything that will not take the issues serious. Did Greece really think that leaving their largest investor hanging for well over a year would constitute any solution? As such Greece is merely the first, France and Italy have other issues and equal worries, the fact that the EU never clearly looked at certain aspects in Greece gives everyone the worry what else did they not look at, or basically ignore. As such, is Greece merely the first visible fatality? Will we see new references towards Greece? The Greek play could now refer to a version of ‘theatrics‘ as well as a version of ‘doomed economic presentation‘. I will let the English language experts look at that one (just to keep them busy).

 

Leave a comment

Filed under Finance, Law, Media, Politics