Tag Archives: Phillip Inman

Delusional taxation

The Guardian gave us a piece that is just too unequal for words (at https://www.theguardian.com/inequality/2018/jul/07/its-time-for-britains-millionaire-pensioners-to-pay-up). Not only is the stage wrongfully set by Phillip Inman, he hides behind the emotional drive and gives no consideration of the historical facts. So even as he ‘treated’ some people to ‘The Financial Crisis: How Did We Get Here‘, we need to see the right setting on how the inactivity of some got us to this place. He starts right of the bat with ‘The retired are having a great time at the expense of young families thanks to generous pensions and property wealth‘. You see, the property boom is fictive, artificial and pushed because some council’s needed to look good for investment, the prices are driven upwards. The fact that three governments have been totally ignorant of the housing situation and that is shown with an utter lack of social housing is one piece of this evidence. In addition, some of these places have been taxed again and again, in some cases up to four generations. Phillip does not notify the reader on that part. The bigger and even more deafening blow of injustice is given with: “A two-year investigation by the Intergenerational Commission, a group sponsored by the Resolution Foundation think-tank, has found that what it calls the “contract between the generations” is at breaking point. It warns that society risks dumping a disproportionate amount of the costs of an ageing population on their shoulders. It’s been going on for some time and now the situation is acute“, you see I was largely aware of that part in the 90’s, when I was not in the UK. Several people notified their governments of this danger (Netherlands, Germany, UK and Austria), yet those governments were all about sailing in good weather, it was not on their plate, so they ignored it. Several players in these places warned of the dangers and in the end too little was done, until it was too late and now everyone is crying on the hardship that comes. The largest portions of those people now getting a pension worked, they worked every day and more hours than ever compensated for. All the elected politicians who remained asleep, optionally on Viagra or at parties ignoring the long term effects as they would no longer be in office (which is a speculation on how they used their time). Now those in office are set in a stage where they cannot unset the rights that these people acquired. Now it is all about “54-year-olds and above – are making increasing demands on an economic and social system that, after the 2008 financial crash, can barely cope with existing commitments“, yet those are demands that they were entitled to. They were taxed, often taxed too high and whilst some politicians made really poor decisions on how to invest these surpluses, they never considered that the losses would remain to bite everyone and now there is almost quite literally hell to pay for these people, and in this case these people are not the retirees, they are the former elected politicians, the economic advisors and the consultants that were hired at a much too high overpriced setting.

When we see “subsidised deposits: that just sent house prices spiralling upwards“, we should take the home owners that live in their home, all paid off out of the equation, should we not? In that same setting “It’s because they have a generous occupational pension and property wealth beyond anything they might have considered when they bought their first home“, you see, as long as they live in that house, it is their home, not wealth, not something they eat. Those caught in the bubble should not get taxed because they merely want a roof over their heads. Yet, in the eyes of those economists that does not count. Yes, those economists who have been setting the stage in their own advantage for decades, they are all ignored in this, are they not?

I do however like the setting that Phillip gives with: “Baby boomers had no idea that the overly generous pensions, failure to deal with the overspill from dirty industries and nimbyism would build up costs for the young“, yet in all this, he does not mention that since 1996 certain changes were needed, because the greying population issue was already well within the scope of everyone (everyone with any level of intelligence that is).

So when we see: “The commission and IF say working pensioners should at the very least pay national insurance. We should go beyond this policy and force the retired to pay income tax under a separate regime. This would set the 40p rate at £20,000 (compared with £43,000 for workers) and the 45p rate at £40,000 (against £150,000 for workers). A new regime for property tax is also needed that taxes more wealth at a lower rate, spreading the load and making it less avoidable, capturing the rich and middle-income earners alike

We need to change the setting. We need to make it very clear that this is not just wrong; we should demand that these people come out in front of it all. Not hide behind the word ‘commission’, but we are entitled to know the people and they need to be held accountable for their actions in this.

So,

  1. David Willetts, Executive Chair of the Resolution Foundation (chair)
  2. Ben Page, Chief Executive of Ipsos MORI
  3. Carolyn Fairbairn, Director General of the CBI
  4. Frances O’Grady, General Secretary of the TUC
  5. Geoffrey Filkin, Chairman of the Centre for Ageing Better
  6. John Hills, Professor of Social Policy at the LSE
  7. Kate Barker, economist and former MPC member
  8. Nigel Wilson, Group Chief Executive of Legal & General
  9. Paul Johnson, Director of the IFS
  10. Sarah O’Connor, Employment Correspondent at the Financial Times
  11. Torsten Bell, Director of the Resolution Foundation
  12. Vidhya Alakeson, Chief Executive of Power to Change

All commissioners of the Intergenerational Commission (at https://www.intergencommission.org/), in addition to this, all the economic advisors where bad advice can be identified, those economists, need to get taxed for the losses that their advice caused out of their own pocket. You cannot tax one population twice over, whilst these people get richly rewarded for not doing their job correctly in the first place. The UK was far behind, when the BBC gave us in 2007: ‘The UK is going through the biggest pension shake-up in 50 years’, they were already a decade too late, this is not news, this issue has been slowly growing for over a decade and now we get highly priced think tanks giving out reports on how to solve stupidity and inaction. So when we see “In an attempt to improve the state pension prospects of women – who often take time out of work to look after children – the number of years of National Insurance Contributions (NICS) it takes to earn a full state pension will be cut from 44 to 30. This will mean millions more people, mainly women, will be entitled to a full state pension. The government has also tried to tackle the issue of vanishing workplace pension provision, as firms move to cut staff pensions” (at http://news.bbc.co.uk/2/hi/europe/6937301.stm), we see a level of inactions from a failing setting. Instead of giving a clear change of more payments into the pension system, we see a feigned ‘the number of years of National Insurance Contributions (NICS) it takes to earn a full state pension will be cut from 44 to 30‘, so not only is there an issue of shortage, the setting that a full pension could be earned was set to 68%, so 30% is close to gone, because all the late starters now suddenly get a full pension. When you realise those levels of close to insane stupidity, will the hearings show that economic advisors told them that it would work? So who were these consultants? We want full disclosure of these people. Should we not be allowed those facts? And when we confront these people will their reply be: ‘it was slightly more complex than I comprehended‘. So can we foreclose on these highly paid consultants and auction off their belongings to make up for the losses?

If that sounds unfair, consider the unfairness of taxing a group after a lifetime of service (or at least 68% of the time) again? Most these people had to bend over backwards to keep their place, keep their job and when it is finally retirement time, we hit them again. I think that this is beyond acceptable.

So when we see the end “The millionaire no longer just lives in the squire’s house. Times have changed. The retired teachers of Beverly in Yorkshire, and former BT engineers in Tunbridge Wells, are having a great time at the expense of young families” then my response is: ‘It is a fucking lie!‘ They are living of funds that they were taxed for their entire lives, the fact that they live in places that they made liveable is because they worked on it most of their live and suddenly that value is because no one was willing to contain the housing bubbles as it call in the foreign investors. That is the truth of the matter and whilst we all consider that truth, also consider the article (at https://www.theguardian.com/society/2018/feb/04/anger-over-glut-of-posh-ghost-towers-london), where we see “London councils have granted property developers planning permission to build more than 26,000 luxury flats priced at more than £1m each, despite fears that there are already too many half-empty “posh ghost towers” in the capital“, the Battersea Powerhouse, where social housing was cut after agreements were ‘adjusted’, and as we see in addition: “Politicians and housing campaigners said the figures show councils are prioritising the needs of the super-rich over those of hardworking young Londoners“, we start to see how the entire setting from Phillip Inman is just a load of bollocks, the flawed London setting is showing that the infrastructure will collapse sooner rather than later, it is a simple setting because empty places do not fuel the needs of groceries, butchers and supermarkets. They are merely empty plots that have only value for the investor and only for as long as profit can be made. Not only is the pension setting a travesty, when seen against the backdrop that David Lammy,  the Labour MP for Tottenham gives “Just 6,423 affordable homes were built in London during the 2016-2017 financial year (the latest figures available), a 5% decline on the previous year and a big drop from the 19,622 built in 2014-15“, labour is not innocent here either, the previous labour governments were no help in any way and whilst we see how 26,000 luxury flats are added to the London region driving prices even further up, the setting of: ‘to generous pensions and property wealth‘, is merely a facade on inflated egos and the need to find taxation for those houses to be vacated so that they get upgraded too. Some people should be ashamed of themselves and until those names are out in front in the open and those who failed get prosecuted, until that day is fact, there is not acceptable setting where the pensioners are to be taxed in any way.

It just ain’t cricket!

Oh and whilst we are at it, can someone please sack the entire Wandsworth council? When we need to set to the forefront “Only 9% of the homes will be affordable, far below London mayor Sadiq Khan’s 35% affordability target for all new large developments” again (I already did that last year), we need to make sure that those who allowed that drop will never be allowed to work anywhere in government ever again, let’s face it, they could still become barber or Uber driver.

In addition, in a flair of social justice when we see “The Coutts figures, compiled by housing data service LonRes, show that developers are pushing ahead with the vast number of expensive new flats despite failing to sell more than half of the 1,900 luxury homes they built in London last year“, these developers should not be allowed to continue, unless the unsold apartments are leased for social rentals to the council at £1 per year, whilst 80% of the rent goes to the pension funds fuelling it and 20% is for the developer (for their cooperative trouble). So, I solved the entire issue for the next 5 years without having to tax the pensioners and getting almost 1,000 additional social homes. There was not need to get 12 commissioners involved, we merely need Mayor Sadiq Khan to set the London legislation to that solution. I do believe that the lord mayor owes me a large cappuccino with two sugars and a warm blueberry muffin. That’s not too outrageous a fee, is it?

 

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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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The freedom to misdirect?

We see all kinds of information and misdirection, almost at any given day. If one good thing is mentioned, another bad thing is swallowed into silence. So when I saw the message on Sky News that “Latvia to join EU”, I had a look.

So Latvia is now to become the 18th Euro state. That part is however you take it. The average Brit will see this as a fearful motion for another few hundred thousand to seek out the London Limelight on a permanent basis. Others might have their own thoughts and reservations. Not all of them will be negative, as Latvia has a decent record in the shipping industry.

Three parts got my eye, and they are at least worrying, infuriating might be a slightly better word. The first quote was from the European Commission that ‘Latvia is ready to adopt the Euro in 2014‘. An interesting quote, especially as well over 60% of Latvia is fiercely against the Euro. Let us be fair, why adopt a sinking ship. Would you buy the Titanic if you found it parked against an iceberg? At worst it is a 3800 meter walk back to the boat (straight down).

It is the quote from the Latvian Prime Minister that is the second quote of concern: “Prime Minister Valdis Dombrovskis welcomed the news, saying in Riga that ‘joining the Euro will benefit Latvia’s economy by removing currency conversion costs and raising Latvia’s credit rating’.

Really? You want to adapt even more credit option whilst you are already in a position to drown in current debts? How clueless does that seem? It will take five years to get past the weakness gained by Cyprus, and at least 15 years to get a grip on the financial vise that Greece is giving the rest of the EU. Is this a ploy to remove the option for the UK to remove itself from the EU? If that is so, then the current administration is not just heading towards failure at the next election, at that point we look at a total overwhelming victory by UKIP next election. I have nothing against UKIP, but I do not think that to be a particularly good idea. Mostly, as a large part of UKIP would be seated at senior position whilst having little more than junior levels of experience. (I just call them how I personally see them). They would be elected in charge, whilst becoming a real danger to create an unresolvable mess for two administrations to come (again a personal view of mine). I will here and now state quite clearly that this is an assumption on MY side. I will also happily add information proving me wrong when and if the time comes.

Back to Latvia!

The second quote is nothing compared to the third one. “We think Euro membership will increase investment activity. We need only to look at the Estonian example where investment in the non-financial sector doubled.” (Source: http://www.skynews.com.au/world/article.aspx?id=877664 ).

This I see as a massive misdirection. The only reason that this looks this way is because Skype was an Estonian invention (a brilliant one). It comes from the people who initially came up with Kazaa. So yes, even though their mention might be correct, the fact that one product is the major reason behind the non-financial investment is thrown into the deep left field of unmentioned factors. Of course Tallinn is also famous for the Beer ferries to Stockholm. It is indeed a pretty city to see, uncannily picturesque and of course it has some visibility for the hourly lady rental services (some are extremely good looking and it is perfectly legal in Estonia). So which of these options give that reason for investments? Also interesting is that this newscast from Sky News did not come with the identity of a writer. You see, here is where we take a look at a few things. Especially when we consider the mention by Leveson and in regards to Ethics. I think that this article is missing a lot of facts and some are too far out of context. However, this is again my personal view on the matter at hand.

Danger 1.
The EU economy is as fragile as it gets. I will not debate here whether it is a good idea to add Latvia to the list. It is important to consider the Latvian addition to the Euro. Especially, when we read statements from their PM is strong at mentioning of the option of upping their credit rating. That part will hit back to the Euro sooner rather than later and as such the other Euro nations as well. It only makes a stronger case for the UK to get out of the EU (I am not convinced it is the right option at present), and get out fast. Even if they do not, additional reasoning for better and more complete regulations is required for all kinds of banks and financial institutions. That would be needed BEFORE nations get added to the Euro as it allows for a gap for re-managing all kinds of financial packages, that would require those government to need additional IMF support. We all know where that leads the rest.

Danger 2.
Looking at Estonia? Why, because these nations are neighbours? Tallinn has a direct ferry connection with Helsinki and a ferry connection with Stockholm (amongst others). Non-financial investments are nice, but how many and who? Skype (invented in Estonia) got a strong influx by Microsoft and twice the amount of what? Another nation getting a few taxable Billions for Skype does not put Latvia in the clear (also much of that amount went to a small group of private developers) as Microsoft bought it. There is every chance that Skype will be phased out of Estonia, then what? This does not reflect badly on Estonia as it has several economic options. Latvia does not have those in equal measure. It has options, but which ones exactly? It seems that the initial article does not bear that out clearly at all.

Another quote to mention is “Latvia is a small, open economy” the Latvian Prime Minister said. Anyone remember Iceland 2004? Similar words were spoken then. That did not pan out to well for that island, as well as many of their inhabitants (and a massive amount of places after that). This is exactly why those banking reforms I pleaded for in many situations are needed and needed fast. There is NO indications that this is about to happen here, but it is proven that greed is eternal; people in power have been willing to sell away what they can and remain unaccountable after that. It is clear that the open market industry cannot be trusted the way it is. It is even proven that too many in charge are passing the buck and letting those who are innocent pay for the hardships created by the greedy (Greece and Cyprus are clear evidence of that).

These elements give additional strengths to the UKIP mission to get out of the EU, which also gives inevitable strength to the German group under Bernd Lucke, who will get the power for the last push out of the Euro. With these two elements the UK and Germany, the EU will have more than two little problems floating their way. Should this come to pass then the German chancellor Merkel will end up getting a new job and as things go, there might be a reasonable ‘danger’ for an Early UK election. At that point it will be the EU segregation of coin or nation through possible future Chancellor Lucke of Germany and Prime Minister Farage of UK that will change the EU and possibly even sink it completely. The simple reasoning is that the Euro cannot survive without both. It might survive the departure of one, but no way will it survive both leaving their support to the coin.

So, is this just speaking doom?

I will always agree that these are thoughts (non-positive ones) from me and my way of thinking. Experts will speak out on how wrong I am. Those experts also predicted that the economy was already on the rise in 2013. This has been proven wrong in most EU nations. Where their predictions were right, they were between ½% and 1½% too optimistic. For the EU it is not just about the economy, it is about getting a handle on the current massive debts. Debts so massive that it is likely to take in some cases up to three generations to get back on the horse. To add nations to a coin is one thing, but when we read about raised credit ratings it comes down to pushing many further down a debt driven society. That in a society where on average in the EU nation’s 1 out of 8 do not have a job, in some cases it is 1 out of 4. That is no place to be in a debt driven society. That is not a social structure, that is in my humble opinion seen as the population gnawing on the remaining scraps called ‘their nation’ before those nations become some industrialised economic ownership, where you either work at THEIR leisure, or you perish.

It would be fair of you the reader to dismiss this thought. Before you do, consider that Greece had been holding a fire sale of what is still in their name (for now). This act is to reduce a debt of millions, out of a total debt which surpasses several hundreds of billion. No more than a drop of water on a hot plate. That happened last year (Source: http://www.guardian.co.uk/world/2012/sep/19/debt-ridden-greece-firesale)

So what happens when a nation has nothing left? Is my reasoning that outlandish? Those sales might get them somewhere near 2 billion, whilst 15 billion is due in 2015. Even if ALL savings from the entire Greek population is nationalised (confiscated). It might just be enough to get the 15 billion. So what to do about the other 300 billion not paid? I am not going after Greece; this is not about the Greek debt. This is about OTHER new members not adding to this, and for that certain precautions are needed. Certain regulations for banks and financial institutions need to be in place. Even if the IMF now admits that the damage through Austerity was ‘miscalculated’. (Source: http://www.guardian.co.uk/business/2013/jun/05/imf-underestimated-damage-austerity-would-do-to-greece) In all honesty, I saw that one coming a mile away. It has been known at least since the early 1600’s that a plucked chicken has little feathers left. (And boy did that chook get itself plucked!)

As messages of rephrasing ‘the message‘, it has been clear that there is a real danger that the Euro is way too close to a non-successful triple bypass.

If a new member dumps their domino on the EU and Greece falls, which will topple Cyprus and then the effect will topple France, Italy, which in turn will topple the Dutch and remaining domino stones (read weak economic countries). What will be left? I will keep one eye on the Guardian the next few weeks as people like Larry Elliott and Phillip Inman, who are excellent financial correspondents, add their views to the internet.

If there is any chance of surviving, then it is only possible if credit limits are frozen and debts are lowered. So far no one is on top of that approach and the EU will change as team Lucke/Ferage might remove the little options the EU had left. Are they wrong? I am not sure, but I do not blame these two for getting their nations out of a collision whilst the others keep on failing to successfully manage their budgets.

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