Tag Archives: politics

August 15, 2013 · 23:35

My Prediction was spot on again

On August 14th the NOS reported exactly what I expected them to do. The economy was again slightly worse of then they thought it was going to be. This time they finally go one step further, they are now stating that it will not be that good either next year. Really?

According to Minister Dijsselbloem it was a structural problem and he points at the housing market as one of the reasons and 8.7% of the population is now unemployed. They expect now a 1.25 shrinking of the economy, which is not that much of a surprise! However, they do predict a slightly better economy for 2014. Which is not really true, but as they keep on bringing the same wrong news, they will get it partially right in 2015. So, I wonder how quick the bad news will hit the Dutch population, and in addition get more bad news before the budgets have been completed. They have 2 weeks to make a decision on what happens to SNS (which is due before the governmental budget is set) and with the 6 billion in cut backs they will then, not unlike actors come with a tear on their cheeks to ‘sell’ this bad bank option and voilà! The Dutch tax payers get another added 2.4 billion Euro in debts.

This option had been on the forethought of their minds considering the confidential paper they left open on the internet (at http://www.rijksoverheid.nl/bestanden/documenten-en-publicaties/kamerstukken/2013/02/27/07-non-paper-financien/07-non-paper-financien.pdf)

The NOS did mention that the negative steps are getting smaller and smaller. They state “the worst is over“; I personally think there is pretty much nothing left to shrink at present. The Dutch must start to realise that they are getting to some extent a ‘baked’ level of information. They mention some options to finding creative solutions and interesting enough, they steered clear from pensions. According to the NOS the government is pretty much ready with a presentable solution and the Dutch present their annual budget on ‘the day of princes’, which is on the 3rd Tuesday of September, some might think soon enough, yet the options left to them might be less then they expect with the impending bad bank shifts and a possible rehash of regulations opening up pension funds for what I would negatively call ‘waisted spending’, especially when you consider that this will be the third administration that is unable to keep a budget.

Considering these facts is why I believe that the current opposition has no right to complain, especially considering the words of Sybrand van Haersma Buma (CDA). Let us not forget that cutbacks were needed in 2009 when the government was in the ‘majority’ hands of the CDA in those days and when Germany tightened the belt when needed, Dutch politicians decided not to follow, as their projected economy did not warrant it. If they had stepped up to the plate then, the Dutch would not be in this bad a predicament today. Yet, even now their bad news is not complete. When we consider the British predicament, then they should consider, that even though their economy seems to be picking up, George Osborne admitted to the quote “the chancellor accepted for the first time that the UK’s debt would continue rising until 2016/17” (from political.co.uk). This means that with a Trillion plus in debt, the economy is in for hefty austerity measures until 2020, from that view we need to realise that hefty cutting costs in the Netherlands are essential, should they consider any decent level of growth before 2015, simply because both nations have been unable to properly budget their spending.

 

Leave a comment

Filed under Media, Politics

Tagged as , , , , , , ,

August 13, 2013 · 12:31

Bankrolling a politician

The guardian made me aware of an interesting twist in Australian politics (at http://www.theguardian.com/world/2013/aug/12/singleton-funds-sporting-candidates-election). The information as presented yesterday evening is that the overly wealthy John Singleton will be ‘bankrolling’ (perhaps sponsoring should have been a better word) two sportsmen Nathan Bracken (Cricket) and Lawrie McKinna (Coach of the Central Coast Mariners). Let’s take a look at the two.

To be honest, supporting Lawrie McKinna makes sense from the fact (even though I have no personal knowledge of the man), that he currently is the Mayor of Gosford, which for my non-Australian readers is a Town to the north of Sydney between Sydney and Newcastle. So, he has experience in the political field being the mayor and as a coach the man knows how to deal with a bunch of ruffians, which pretty much makes him ready to become the next Australian PM. Nathan Bracken is another story. He does not seem to have any real experience; however, that in itself is not an issue. As this is an election year in Australia, we see all kinds of people coming out of the woodwork, with the odd politician not having the ability to identify any issues he stands for. The latter part was quite the giggle for the Australian Facebook community. So there is no way that Nathan Bracken would do any worse and we all have to start at some place and some time. John Singleton will be sponsoring these two new contenders for the Independent party.

How bad is this idea?

John stated that he is fed up with the central coast being ignored. He was quoted in the guardian article stating “someone has to keep the bastards honest” and when we consider politicians on a scale slightly larger than just Australia, there is a genuine support for that statement.

The issue does remain if there is not more in play. Singleton has massive interests in the Central coast, which are after all his own stomping grounds. Real Estate, resorts and a race horse operation. So we are talking an investment value that is running deep into the 8 figures. In a business mind having 2 politicians on your side is good business, which is why I as the devil’s advocate am wondering whether there is not more in play.

To be honest, he is not hiding his involvement (like that was ever an option), yet there will forever be a little shiver in my spine when politicians are knowingly funded by a ‘party of one’ and to whisk such that feeling can never be good. Singleton might have stated “It can do no harm and it can only do good”, but that is one part I feel, which is too often never the case.

Still, we have had several remarkable exceptions. Dick Smith for one, who has put his money where his mouth is, donated tons of money on all kind of good causes, whilst not cashing in on it in the past. Singleton too has been involved in charity events from the early 90’s. Australians are for the most, not that greed driven like we see all over Europe and America. These people made their fortunes long before 2004 and they survived the financial crash without a too much of a hitch. They have more than enough money and they likely realised that they can’t take it with them where they are going to go in the end (a lesson the greedy never learn).

Still, there is a dangerous precedence here. I am all for people getting into politics, especially if they are bright enough and when their past (sports, movies) give visibility to causes and goals the people really need. The issue I have is when one sponsor becomes deeply involved, even when the person involved does do this openly, it keeps me worried.

The article does however seem to speak true on some issues. The Central coast seems to be ignored too often, not unlike Sydney it has youth unemployment. Not unlike the NHS, they have their healthcare issues, which seems to affect all of Australia and the youth suicide numbers are rising all over the place, which includes the Central Coast. So the fact that Singleton wants this dealt with on his stomping grounds is fair enough, yet no matter how fair it is, I remain to some degree sceptical for the simple reason that in the majority it is too naive to believe that large political donors will not expect certain favours, a view that is held by a lot more people than just silly old me.

 

Leave a comment

Filed under Finance, Politics

Tagged as , , , , , , , ,

August 8, 2013 · 13:32

The Jay-Z talk

Today’s inspiration comes from a source, slightly right of the middle. It was an interview that aired on Bill O’Reilly which he (or his team) placed on Facebook. Jay-Z was warning for the dangers of escalating violence as the gap between haves and have not’s increases. This is a viewpoint I agree with, especially as I had come to the same conclusion many months ago. More important, that is a reality that is in play in both the US and Europe.

What is to blame? Well, the Financial Institutions started it all and as such they need to be mentioned. I reckon you have all read enough of this, but down the track, this will issue will pop up again. More important are the issues that have been more and more visible over several months. The Obama administration might claim that they have added 175,000 jobs, yet as you would see, this level of misrepresentation will get an ironic side soon enough. The massive spin at present is coming from the industrials. If we see the Dow index, then we look at 30 companies who ‘seem’ to be setting the trend, especially my American readers, have you noticed how 1 out of 6 in America lost their house and an even larger population lost their savings? So, if the economy is so high, then how is it that the damage remains so severe? Well, I am about to answer that.

Those 175,000 jobs, well the bulk of them are only part-time and they are mostly minimum wage options only. To be honest in such a bad economy that could not be the worst, but from my viewpoint there is more, which makes this a lot worse.

It was a little while ago on how some expert spoke with a level of pride that the Dow was so strong, and remained growing due to an increase productivity managed by a declined workforce. So basically, a 90% workforce was achieving 110% result and no one questioned it? The fact that even though these companies are getting record results, no long term hiring has commenced?

Well, here it is. The view I have is that the banks allowed for a shift of policies, which has pretty much introduced a legalised form of slave labour (a harsh reality, but not false). It is a nice irony that this has occurred during the time of an African American president. The first question I should answer whether this assessment is fair. Yes it is!

The reason is that neither President Obama nor President Bush did ANYTHING truly successful to hold these Financial Institutions accountable for the damage they bestowed on the American population and the rest of the world. The fact that even today in most nations strong bank regulations are still not a fact means that this can all happen again. So, when we get to 2020 and we all think that we are back on track, these players could play the same game all over again and we go back to nothing overnight. We might not even have to wait that long as banks all over the EU are now trying to loosen up ties with those controlling pensions of people all over the world.

So Jay-Z is correct. The gap of those who have and ‘the others’ is widening and it is widening a lot faster than you all realise. Consider the enormous debt that the American people got stuck with, with the due compliments of companies like Freddie Mac and Fannie Mae. Do you remember on how ‘something’ was going to get done? Well consider the house resolutions

H.R.1227 Latest Title: GSE Risk and Activities Limitation Act of 2011
H.R.1225 Latest Title: GSE Debt Issuance Approval Act of 2011
H.R.1223 Latest Title: GSE Credit Risk Equitable Treatment Act of 2011
H.R.1221 Latest Title: Equity in Government Compensation Act of 2011
H.R.1182 Latest Title: GSE Bailout Elimination and Taxpayer Protection Act

All these bills have been left untouched since 2011. The story does get a little worse when we consider the article from Bloomberg as published on May 8th at http://www.bloomberg.com/news/2013-05-07/new-regulations-are-strangling-community-banks.html

The starting quote: “The wave of new banking regulations that Congress created to deter and punish Wall Street’s misdeeds is landing with much greater impact on the U.S.’s almost 7,000 community banks than on the too-big-to-fail lenders.”

This gives us the question whether there is a foul stench coming from the big boy enabling group, which is supported by the quote “Federal Deposit Insurance Corp. show that large banks have both the lowest credit quality and the lowest cost of funds in the industry.” If the American people depend on their day to day issues on those community banks, then why are these regulations pushed out in this way? Well, in my view the banks ‘own’ the politicians and the banks decided a let them all suffer until regulations are dropped again, so we can do this one more time approach. This is how I see it.

Yes, banks definitely need regulation and not only in America. However, the need to strangle certain services that caused the bulk of all the grief could be choked more efficiently without placing these community banks in a vice. That would make sense, unless those community banks go the wrong direction of course, so better options could have been found, which makes us wonder where political levels of competency currently are.

Supporting evidence can be found in this article at http://www.bloomberg.com/news/2013-06-20/bank-of-america-and-the-tragedy-of-foreclosure.html

It is as analysed as a he said/she said situation. I think it is a ‘they said’ and ‘it claimed’ situation, but let us not revert to a black letter wishy washy job.

Where the bank claimed “These allegations are absurd, patently false and contrary to Bank of America’s long-standing policy only to foreclose as a last resort when other available options to help keep people in their home have been exhausted,” can be read as true, but that does not give way that this tactic has likely been used and to include the tactic as quoted “stall applications for loan modifications“. One does not exclude the other and as such it seems to me that as more facts become visible, the failed regulations and more important a wrongful push to pressure the entirety of banking, instead of certain services and strangling certain monetary reward schemes (read bonus structures).

So again, Jay-Z has a point!

This goes beyond America. The Dutch SNS Reaal bank is still in levels of turmoil, as can be read at http://www.nrc.nl/nieuws/2013/06/06/sns-reaal-verliest-netto-972-miljoen-in-2012-16-miljard-in-eerste-kwartaal-2013  (Dutch source), it boils down to the last paragraph [translated] “The Netherlands must submit a plan within 6 months for restructuring the SNS. The real estate branch must be placed in a separate organisation. On these submissions the commission will take a final decision“. This was in February and the final decisions are due this month whilst political Netherlands is on vacation.

My prediction is that these politicians will make an 11th hour decision with the humble stance that includes ‘alas’ and ‘we are forced’ and ‘this is by far the best solution’ and they will then push the real estate branch into a bad bank, which basically mean that (please pardon my French) ‘Banking Wankers’ high and low got away with it again and the Dutch tax payers will end up coughing up another 2.4 billion Euro, which comes down to every Dutch tax paying citizen paying a 175 Euro each for a mess that politicians are unwilling to control on several levels. So, these politicians are allowed a vacation whilst there is such a mess? My vacations got cut short twice by two previous employers and these politicians go on vacation making twice as much? Talk about dedication (or lack thereof).

This all boils down to Financial Institutions and Industrials are given the leeway to widen the gap of ‘those-who-have’ and the others, yet politicians remain silently in the background showing the spine of a paperback, not one hardcover amongst them.

Let us to get back to Bill O’Reilly where today’s blog all started. Many do not agree, but I admire the man. He can be right, he can be wrong and I have not always agreed with him, but he has always shown clarity of what he thinks was right. No half-baked answers! The issue with him is that he is another item of proof on the US failing levels. You see, he has a website, a talk show and he has a good (read very good) income. He donates all the profits of those website sales to what he sees as worthy causes, mostly Veteran and serving military and I am all for that. Now, as stated, his income is really good, yet nowhere near what some get. This is clearly shown as annual bonuses on Wall Street rose to a total of $20,000,000,000 (20 Billion) in 2012. So the challenge for Bill O’Reilly is to find 100 people donating to the community on that level, whilst they are not allowed to make over 15 million a year to be allowed on that list, in a population of over 325 million he will fail. So basically he makes less than a mid-level banker and donates a truckload. This man stands almost alone!

That is the evidence, that even though one can be found, many are destitute beyond their control and the people in financial institutions keep on being enabled by the very people who should be protecting those in such an economic state of destitution.

Jay-Z spoke a true word!

When we see what people like Jay-Z, Will.i.am and Bill O’Reilly contribute to communities in such a degree there is evidence that there is still a level of humanity in this world. It would however be nice if the politicians in many nations step up to the plate to make their places a lot better without enabling greed.

Leave a comment

Filed under Finance, Law, Politics

Tagged as , , , , , , , , , , , , , , , ,

August 2, 2013 · 04:22

Fighters to Syria

The Dutch have started a trial against an Iraqi citizen who has been living in the Netherlands for 13 years. Now he is joining the rebels to fight in Syria. In this case the trial seems to be focussing on the mental health status of the individual.

It is an interesting view. In this case it is about people who will become militant, more extreme and the fear is that these people might return to the Netherlands in a more militant and extreme state with additional fear that these events might start a wave of extreme actions.

There is a case that seems to hold water, yet will it hold water in a legal way?

1. The person has not yet left the Netherlands and as such the issues are not proven (at present).
2. If we look back to WW2, Americans moved to the UK to fight against Hitler’s Nazi Germany.

Is this a similar view?

In the second case there are additional issues. These people are joining the fight against Assad. This is an internal civil war. In the WW2 case England was under direct attack by Germany. So there were other issues in play. In addition, these people all joined military fighting units that were part of a sovereign state. That is not the case with the Syrian rebels.

The issue that does not seem to be (overly) illustrated by the news at present, is that in this specific case (in case of Syria) that no matter how good the goal, these people are joining a non-aligned, combatant army. It could be seen as a group of people that are joining a terrorist organisation (from the viewpoint of Syrian government). There is supporting evidence in this case to some extent.

If we consider Humanitarian Law, then we must also accept the laws of war, which limits attacks to “military objectives.” Military objectives are personnel and objects that are making an effective contribution to military action and whose destruction, capture, or neutralization offers a definite military advantage. There is ample evidence that civilian targets have been fired upon. When we take that into consideration, then a government has a clear directive to stop this. It could send its own army to police and structure the events, yet, they cannot engage in war on targets that are prohibited by Humanitarian law. From that point, not only must these recruitment drives be stopped, they also have some level of evidence that recruiting for these tasks should be seen as criminal.

I must keep a little space for the chance that my information is not complete, or even worse, is to some degree incorrect (newscasts from all over the world tend to lower reliability a little). The spreader of the information that we see on the news might not be completely correct, or from a reliable source (not claiming that this is the case, but I must allow for this fact to be the case).

If we consider that then the statements of both David Cameron and William Hague are more than just dangerous. I am referring to a batch of statements that these two honourable gentlemen have made over the last 2-3 months. In that light, it is the statement by the Lord Mayor of London Boris Johnson that seems to be the correct one. (He stated “Britain could not end the conflict by ‘pressing weapons into the hands of maniacs.’“) Even though Humanitarian Law does not speak on the delivery of weapons, the fact that it is known that their weapons are used in transgression of Humanitarian law, even before these weapons had been delivered could bite any nation that delivers these weapons down the road.

The transgressions that are currently allegedly occurring are not from some obscure part of the Customary International Humanitarian Law. No, we are only at rule 1 when we find the collision with the occurring transgressions. So by allowing and not outspoken opposition of these transgressions, we are not giving support to regime of Assad, we are actually flushing our own standards down the drain. If the convoy that was attacked last week by the rebels contained goods as well as people then there is also the transgression of rule 55 of humanitarian law. Furthermore, there is every chance that these foreign supporters, as not being a national from Syria, could be seen, if arrested, as a spy, a mercenary or a terrorist by Syria’s sovereign ruling party. That would complicate matters in several ways and its unlikely that the end solution that the Syrian courts would offer is one that the supporter will be able to live with (like the firing squad).

Whatever choices the UK makes, they should be clear and outspoken on the transgressions of humanitarian law. The Dutch face a similar act to follow. In regard to the court case, it seems to me that in the British Nationality Act 1981 in section 40 it states:

The Secretary of State –
(a) shall not deprive a person of British citizenship under this section unless he is satisfied that it is not conducive to the public good that that person should continue to be a British citizen

This means that, even though it is decently bad Humanitarian law, that if the Secretary of state can place the fact that militants returning to the UK are not in the interest of Public good, they would lose their UK passport before they even make it past UK customs at the airport. The Dutch are less lenient here. In their case you would only lose your nationality is you are convicted for a crime against the Dutch state. It would be very conceivable that the transgressions of Humanitarian law would constitute enough transgression at this point. That part is not yet a given as the current case in the Netherlands is the first one of its kind ever in Europe.

Leave a comment

Filed under Law, Politics

Tagged as , , , , , , , ,

July 31, 2013 · 11:18

Equality should not be a concept

Today my inspiration comes from Sky News and the social media. The issue at play is one I took offense to two days ago. I learned that a Miss Perez had started something that led to the new 10 pound note to be dedicated to Jane Austen. A brilliant step! I had not thought of it. I have the books, I have seen movies from her books and a movie on the life of Jane Austen. She is and should be regarded as the good side of England. Even as a spokesperson for the British Empire she would be a good choice. So, my first thought was to say ‘Well done Miss Perez!’

So when I learned that she was harassed by THOUSANDS of trolls and abusers on twitter, I took offense and I wrote her a congratulatory message. I do not care for some excuses that the socialite media figures take on that these people are doing it out of boredom. It is abuse plain and simple; there is no excuse in my view.

I am a little on the fence when we go out of our ways to blame twitter in this matter. Yes, we should be able to report abuse and spam and with ease. I do however stand behind the person who stated (sorry, forgot to write down the name) that Twitter is a tool; you cannot hold them accountable for abuse of it. To some extent I agree with that view. When a person’s skull gets bashed by a criminal with a wrench, you do not sue the company making the wrench. People kill people, plain and simple.

So women like Lucy-Anne Holmes should have all options and freedom to advocate their cause. Most people (especially male teenagers in the UK) would feel less happy, when ‘aspiring’ models promote themselves on page 3 of the Sun are removed, but equally fair is that others are not drawn to this and will not cry if that space is changed for other information. It was her right to speak out and she did. We might not agree, we are justified to speak out against her viewpoint, but we are not allowed, or should be allowed to threaten her in any way. Let’s face it, she is not the head of <some major social media company> selling our private details. Interesting how no one cares about that!

I cannot even fathom the abuse and threats some use in regards to people speaking their mind or standing up to something they believe in. I do however feel strongly about freedom of speech and they have a right to speak their belief, even if it is not a view I hold. I will even make a stronger case. I reckon that in support to Miss Perez, I would vote that a woman should be depicted on 2 of the 4 notes at any given time. If we truly believe that we are in an age of equality, then should that not be visible in all fields, including monetary? And in this case, in my humble opinion, the picture of Her Royal Highness Queen Elizabeth does not count towards this number. The question then becomes ‘are there famous women?’

Yes there are! (And plenty of them too) Even beyond the art of writing there are scientists like Elsie Widdowson and Kathleen Lonsdale. We could start an argument on the undervalued acts by Rosalind Franklin as well.

Leave a comment

Filed under Media, Politics

Tagged as , , , , , , , ,

July 19, 2013 · 15:44

The Setting of strategies

The danger of any person trying to look through the mud that we know as political strategies related to ‘what is real’ and ‘what is unlikely’. There is no ‘non-reality’!
We know that certain steps have been staged (as a good politician would). This staging is not unlike the game ‘GO’ where we place the pebbles in such a way that entices to other to place their pebbles, completing our strategies.

This I discussed in last week’s blog involving the fading pension plans. Yes, and as suspected, whilst Dutch politicians are in vacation mode, the Dutch pension funds are now filling the Dutch with dread of a possible 10%-20% loss of retirement. That is some fear in their world of quick rising prices. (www.nos.nl)

Today is not about that, even though there are possible links! Today it is about renewed issues on telephone taps and how the powerful Murdoch gets another painted target. Yet are his words so wrong? We had the phone tap probe, we have seen the Leveson report, and instead of actually acting on the Leveson report as much as possible. Parties involved seem to be having another go at Rupert ‘the Piñata’ Murdoch. A lot or the press is getting a little sour as words are hashed and rehashed into statements of whatever they could be called.

You see, is this an ACTUAL criminal investigation, you know the one with barristers, judges and both parties taking notice of the evidence act?

Or is this another inquiry that has gone on for two years, giving more visibility to Chairman Keith Vaz and a few other political head honcho’s? Do not think that I am on Mr Murdoch’s side. I will instantly stand by the views of Hugh Grant and Lord Justice Leveson in the attack on the events that surrounded phone hacking, and not just the Sun/News of the world.

There is however the valid thought that cooperation is required and should be given. However the following quote “The committee has heard from the Metropolitan Police’s assistant commissioner Cressida Dick that since May ‘voluntary co-operation (with News UK) has been significantly reduced’ and that police have had to obtain court orders regards ‘requests for new material’“.

Is that the issue? This has gone on for 2 years now. Is thus the statement by Mr Murdoch “totally incompetent” when it comes to describing the acts by the Metropolitan Police entirely wrong? If this has gone on now for 2 years, then yes, I think it is time to look at the questions being asked, and asking additional relevant questions to the investigating offices.

Not doing so could turn this entire phone hacking scandal into a fair label of ‘Witch hunt’ and as such, I would see this as the premise to attack the Leveson report. This is because the two are linked. I remain in favour of implementing the entire Leveson report. Not because I am so much in the know of things, but because I have utter faith in the wisdom of Lord Justice Leveson. Those who claim to know and judge the report as invalid, whilst not in possession of a Law doctorate are required to remain very silent on the matter, unless they show actual valid documentation! I admit that this is slightly strong wording, yet having listened to a few people blatantly attacking the Leveson report in favour of unmonitored freedom of the press, after which I asked in regards to the reports footnote 417 in regards to the accuracy of information, their….. ‘emotional repartee’ in my direction gave me what I needed to know. (They had no clue, or better stated, having never read the Leveson report).

By the way, that footnote is “Clause 1(i) of the PCC Code requires the press to take care not to publish inaccurate, misleading or distorted information, including pictures” (page 673, Leveson report).

If we could only apply this requirement to advertisements at times! (Big Smiles).

So we must prevent that these events to ‘evolve’ into a witch hunt. I am NOT stating that this is happening, but after 2 years that image is starting to linger and that is wrong too. My issue is with the statement that was in that same Sky news article (at http://news.sky.com/story/1117618/murdoch-phone-hacking-probe-excessive)

“In his letter he set out how the company disclosed 500,000 documents after 185,000 man hours at a cost of more than £65m.” When the coffers are at minus 1 trillion and student costs are growing and growing, these costs are only excessive if the government is not able to make Mr Murdoch pay for these costs.

I personally have always been to mind that once we need to focus and stretch the actual letter of speech, we lose facts of what is the goal. Basically, in these words I am wondering whether the committee has lost the view of the Big picture. (My apologies if I am incorrect).

So where is the issue of strategy? Well, if we read the “The Leveson Report: implementation” (at http://www.parliament.uk/briefing-papers/SN06535), then at 6.5 (in the full PDF version) we see some additional delays in implementing the Royal charter. I quote: “Lord Wallace of Saltaire: My Lords, my briefing says that it is not appropriate for the Privy Council to consider more than one royal charter at a time on the same issue. The noble Lord may consider that the Press Standards Board of Finance has therefore been extremely clever in what it has done and may draw his conclusions from that – and that accounts for some of the delay.”

So we have more delays. Granted that they are procedural, but I wonder how many papers have reported on that delay? I reckon not many! Out of sight, out of mind is a valid strategy that has been in long standing with politicians and corporate spokes people all over the world.

So is this a strategy by Mr Murdoch to keep the focus away, or is this an investigation that is getting stretched in a very expensive way to stop your privacy from getting chartered protection? Not non-privacy by government (aka GCHQ), but by those who are making money out of side stepping commercial reasoning for ignoring privacy for the simple reasons of greed?

The issues of strategies are actually wider set then most will think. Against the Dutch pension issues, there is the view of George Osborne, the British Chancellor of the Exchequer. This is viewed in the subtitle “A majority of directors at the Washington-based International Monetary Fund disagrees with its own advice on UK fiscal policy.” which is part of the article at http://news.sky.com/story/1117069/imf-board-disagrees-over-uk-fiscal-policy.

Even though this sounds good for the Exchequer, the issues of no tax rises in the upcoming years (or after 2015 as he states it) is not just short of wrong (at http://www.guardian.co.uk/politics/2013/jul/11/george-osborne-deficit-tax-rises) , I feel that this could only be kept if a play is made to the pension funds (like the Dutch are trying now), as well as the shale gas approach which is seen as ‘frackalicious’, yet, we should not forget the issues that the Dutch county ‘Groningen’ is going through as it has seen a rise in small earthquakes giving home owners massive costs to repair and additional losses in house values. These issues are to some extent denied/ignored as the investigation is going on, yet the damages that the people see in the news on a regular bases tells another story. At present corporations are now claiming for millions in damages from both the Dutch gas company (NAM) and the government. (at http://www.dvhn.nl/nieuws/groningen/article9972913.ece/Corporaties-claimen-miljoenen-bij-Nam) there is also the claim for compensation to be awarded for the loss of housing value, which adds up to over 10,000 houses for up to 25000 Euro. (Yet one house in the newscast has a value decrease of almost 150,000 Euro). Let us not forget that these were only test drilling, the actual drilling has not even commenced. If the exchequer is depending on these numbers then he might be in for a rough ride. In addition, even though Isla Britannia is decently larger then the Netherlands, there is enough evidence that these issues will have a serious impact on housings and the environment.

If this is all about strategy, then playing the cards close to the chest seems a debatable wisdom. Because when this all goes south, it is not about the Isle politicians are sitting on, but the issue whether there will be a nation left to serve.

Should you doubt that statement (which is fair enough), then consider on how ‘well‘ the US claims their economy is getting. The fact that Detroit is now bankrupt should be enough concern that the American way is not a solution.
We, the Commonwealth nations must stick together to stay afloat and survive, fight together to become the nations of true prosperity again.

None of these strategies are ready for that essential need!

1 Comment

Filed under Finance, Law, Media, Politics

Tagged as , , , , , , , , , , , , , , , , , ,

July 11, 2013 · 22:24

Boosting Pensions

Would you like to lose your pension? This is more than just a simple question. If you live anywhere in Europe, then the danger to your pension is a lot more realistic and will have a larger impact then you thought there would be.

Let’s take a look at a few countries.

Netherlands.
This was already under review, however, at present there are discussions going on to get a handle on accessing pensions for all kinds of reasons. The image in part is that the Dutch government needs this treasure vault to deal with more immediate issues as well as well as the application of spending to start an economy. As reported yesterday by the NOS, the issue at present is that the government thinks it is getting access to billions a year extra. The ABP comes to the conclusion that the changes will in the end cost billions, not save them. This comes as the government is presently trying to cut almost 3 billion Euro in retirement funding. The cut back was based on the fact that businesses and employees will save-up less per year, which might save 1000 euro, which would suit the government, as this gives them a taxation windfall of 2.3 billion. In the new system it is stated that not only do people lose the 1000 euro advantage, they will have to pay more. So there would be zero advantage, even worse, considering the amount of government jobs the treasury would be down a billion, so in the end no savings at all for the poor poor coffer, only additional losses to deal with. At a time when 6 billion in cut-backs are needed, this is not the bad news they want to hear. All this has a few more hooks. Especially when we consider the questions by Hachchi (D66) in regards pension premium raises that the ABP added in January 2012. The costs were raised by 300 million euro, as documented in  2012Z01310 (source: http://www.rijksoverheid.nl/bestanden/documenten-en-publicaties/kamerstukken/2012/03/06/antwoorden-inzake-de-verhoging-van-de-pensioenpremie-door-het-abp/antwoorden-inzake-de-verhoging-van-de-pensioenpremie-door-het-abp.pdf)

It is interesting that a similar issue is now appearing only one year later. There is more!

In one view we read that the ABP in 2010 was set at 105% coverage (which means that if 100% pension is paid out, 5% remains for growth). It is however interesting to read from the NRC (at: http://www.nrc.nl/nieuws/2011/12/01/abp-verhoogt-pensioenen-niet/) we read that in December 2011 the coverage was only 94%, so in one year they went down to some degree. The same can be read at http://www.pensioenbelangen.nl/label/abp/ , more interesting, the numbers state that per September 2012 is was only at 101%. So if we recall the blog I wrote a week ago “The Age of ‘no retirement left’ is coming“, it is interesting that in that case the government is stating so much wealth. As the ABP is considered to be the largest one, we should wonder whether the Dutch politicians have any clue on what they are doing. More important, is this about short sighted cutting avoidance, or is it about more. Do not worry, they are not alone, we will have some fun looking at the UK situation next.

Is there actual evidence to support my theories? Well, the sources above clearly show that the ABP is only marginally above 100%, yet they had remained below 98% for a decent amount of time, so there is a valid amount of concern. In addition, when we consider the questions as stated in

2012Z01310, then certain issues in the recovery measures of pensions were not known, yet the initial billing would have been there, so this again is a piece of evidence that reflects 11th hour budgeting. The fact that this was never completely properly addressed remains a worry and not a reflective concern considering that in part the same issues are now again in the news.

The issues are only part of the entire picture. The fact that the Dutch pension administrator PGGM, has stated that there are issues with Walmart, could have some serious repercussions. Reuters quotes that “PGGM held 2.76 million shares of Wal-Mart as of March 31” (at: http://finance.yahoo.com/news/dutch-pension-group-halts-wal-211416613.html) this was only last week. Should the PGGM pull out then there would be concerns on both isles of the Atlantic river. Those shares represent well over 200 million, which means that Wal-mart might get some renewed problems down the line. Whether this would be due to PGGM is not a given, the fact that questions from a shareholder holding almost 3 million shares are not answered is certainly matter for concern. If we consider the economic downturn the Dutch have faced over the last 2 years, considering the issues the IMF reported in 2011 on Dutch pension funds. In that time, people entering their retirement saw their funds cut and a support capital of 50 billion was needed. So when we read less than 2 years later that those finds are so rich and that they should be opened for additional means, whilst a week later we read on some of the alleged dangers, it seems to me that playing politics with pensions is a very bad and not too bright idea. The 2011 article can be found at http://www.europeanpensions.net/ep/imf-team-recommends-adjustments-to-dutch-second-pillar-system.php

United Kingdom.

So, let’s take a look at Australia’s baby brother UK (as UK is only 3% of the size of Australia). The UK is in dangers no less immediate. The Guardian reported last November that issues would impact greatest on savers and pensioners. Yet, the story behind several issues is not brought here. For that we should look at what is happening now. Part of that is set here as http://www.guardian.co.uk/sustainable-business/capital-markets-climate-change-pension-funds. Is that even a fair assessment? If we read the quote “The way pension funds invest will determine the future, which means that to thrive they’ll need to wake up to climate change” I will wonder whether this is wishful thinking of whichever politician or investor whispered to the author. When we looked at the Netherlands and other places, these nations are all looking at sustainability solutions. Yet at present the ROI of these options are not up to scrap, so WHY use pensions there. These are fields that have been ignored be several administrations. If it is SO lucrative, then why not invest in it yourself (me asking governments)? Yes, it will be the future, but at present too expensive, so getting articles out there for pension funds to invest in the future might read nice, but as ROI reports falter it will not hold a candle up to the coming rage. This view is shared by James Cameron, chairman of cleantech investor Climate Change Capital. I know that the next part sounds dodgy as hell, but when we consider the quote “Future pensioners are going to have to bear more of the investment risk themselves“. In that case Pension funds are much better of owning parts of Raytheon and Northrop-Grumman. It seems that governments all over the world are seemingly ready at the drop of any hat to buy missile technologies, and as such the ROI for pension funds are much better off going to those places. I agree that the statement is less appealing to read, but why should pensions now be put under more and more pressure whilst, those behind the scenes refused to budge when they should have done so. The investment risk reads like a joke considering the article published in May at http://www.guardian.co.uk/money/2013/may/22/one-five-poverty-line-state-pension where it states that  20% of those retiring this year will fall below the poverty line. This is in my mind the consequence of a housing issue never properly dealt with for over 27 years, whilst pensions were left alone. Taking both in the balance, then pensions might cover 80%-100% of the rent for this year, and those will come up short 2014 and later. So that is in the most positive case where people do not need to eat or drink ever. This is only for those not living in London, living there would almost amount to instant suicide. At least the Dutch can claim that their retirement issue had never been THAT bad. So, as there is a collective boost to raise the value of the RBS, that former bastion might be used to actually boost and increase value and strength of British pensions as they focus on getting back on the horse of profit (or at least try to get on that horse). Pensions are being cut in other ways too. That part can be read at: http://www.independent.co.uk/money/pensions/expats-call-for-fairer-pension-payouts-8659717.html. Some of these pensioners (almost 10%), saw the unaffordable future they saw coming their way and as such they moved to other areas. Some saw the light in time and bought a small place on Crete, some left for alternative Mediterranean locations and some went to the warmer regions of South Africa. These people saw the light, saw the non-linear growing costs and chose a better solution. It goes even further. What is less than possible in the UK becomes very affordable in India, where a week’s pension gets you a 2 bedroom secured apartment for a month, considering that rent is the most expensive part, three weeks of pension should keep a person well fed. So why not consider this? Instead of going on an exotic vacation, live in an exotic place, and of course, the Indians are all on average Cricket nut, so not the worst place to be during Cricket season. If these people are forced back because of pension issues, would the British government have the means to suddenly appoint housing to these people? They might not get an option in this as they froze pensions. In that regard, I do hope that the Exchequer George Osborne considered the consequence of even part of those 1.2 million pensioners returning to England and his 2 billion pound winter fuel allowance. That is only one post. On the other side, there is a genuine and acceptable concern of the people who are abusing that system. There had been earlier mention of the situation where UK men marrying Thai brides is a reason for the foreign pensions increase. If we voice the scenario where a pensioner marries a woman under 25 and she then gets the allowance after he is gone, then this would indeed be an unfair use of the system. We could argue that a marriage, not validated in the UK would not be seen as a marriage (I know, the legal nightmare behind this is so not nice). However, that those who never added to the British system, not being eligible for those funds would be slightly better phrased, yet the consequences for consulates to keep track of these people would be almost disastrous. Even though this would be spread over several countries, the fact that they could be required to deal with over 700,000 additional requests a year, is not likely to become a ‘relief’ to the system. Yet I must agree that something must be done. The dangers of cutting the transferred pension, if there was a marriage, could mean that these people might have a claim on humanitarian grounds to receive full Visa and transfers into the UK, which in the end might add up to be a lot more expensive. The only solution could be legislative, yet which of the ‘evils’ to choose from is not really for now. In my mind the options grows to make the pension only transferable if the marriage was longer then a certain period (5 years) or the spouse must have been a UK resident or lived, worked and paid taxes in the UK for no less than 10 years. I am just grasping the 5 years out of thin air, yet this would limit the dangers of UK pension abuse, it would also give a clear message to the valid pensioners that THEY are protected, yet that there are limits on passing over a basic state pension. In regards to those who are valid recipients of the basic state pension and their foreign setbacks there is more information at http://pensionjustice.org/.

 

Germany.

We should consider the German system, even though it is thought to be strong, secure and to some extent safe. They share the dangers those in the UK currently have. As reported by The Spiegel at http://www.spiegel.de/international/germany/germans-fear-poverty-in-retirement-even-after-life-of-work-a-855352.html, even though their economy is in a strong state, the lost investments, the futures of retirement are almost none existing. In fact, their pensions are a lot worse of then the UK ones. A person there would end up getting a mere 32% of their income. If we consider the Dutch system where 70% does not even foot the bill, the desperation of 32% is a lot less appealing. The question becomes important when we consider the required pension buffers these pension funds need to have. The interesting addition is that a report in 2012 from the labour ministry stated that “the Labour Ministry itself, which indicates about a third of current full-time employees could end up receiving social welfare unless the pension system is changed. Those who have spent 35 years working full time but earn less than 2,500 euros a month would also end up depending on welfare.”

So this is the third country playing politics for non-visible short gain and massive shortages in the long term. This gives serious concern for the bill the Germans adopted that as of January 2013 “for a reduction in the statutory pension contribution rates”. And that helps your citizens…..how?

So this is not just a national issue, this is a European issue on several levels. Unless some strong actions are taken, a large part of Europe will enter living conditions worse than that of several 3rd world countries, whilst comfortable living would be found for those moving to places like India and Argentina.

Go figure!

Leave a comment

Filed under Finance, Politics

Tagged as , , , , , , , , , , , , , , , , , , , , , , , ,

June 28, 2013 · 13:02

Exploitation fears for tax-payers

The Dutch NOS reported another go with banks in the view of business. Bernhard Wientjes has been voicing the opinion that some of the banks (ABN/AMRO and SNS Reaal) should be sold. It was brought in the air of ‘when you have no more money you start selling the silver cutlery’ would be the next step. As the Dutch government needs to cut 6 billion, the cutting spree could be a lot less. Well, in this matter I personally stand with Finance minister Jeroen Dijsselbloem who is not that eager to do that. There is logic for not doing this, as this relief would be for one year only and after that the cuttings would still need to be found next year. I am worried that certain business men are now in a state to strong hand certain political decisions. I leave it up to the reader whether those decisions are purely for the need of greed.

If business is linked to greed (often called ‘enterprising solutions’) then that would clearly fit in the views of Bernhard Wientjes. As chairman of the VNO-NCW it would be an enterprising solution that is right up his alley. The VNO-NCW is a fusion of the VNO (League of Dutch Commercial Enterprises) and the NCW (Dutch Christian Business Society). Their mission is to support and further the needs of Dutch corporations both on a National and international level. In this he is doing exactly what he is expected to do.

Yet, in this light, at a point where two banks would be sold far below value and at the expense of the tax-payers, one should clearly ask and look at the possible windfall for Bernhard Wientjes and his friends should this work out in that way.

There is a clear valid question whether the Dutch Silver cutlery is currently in a safe position. The reality of 6 billion of cutbacks will start to show a strangling result, yet, this was the danger all along when previous political alliances (2006-2010) were clearly pushing the outstanding invoice forward. Now that there are no more options, the consequences are likely to be dire, and as such in his position Bernhard Wientjes is clearly trying to look forward for Dutch corporations. I see this specific step as a dangerous one and until Dutch banks are clearly on a minimum set standard nothing should change. In addition, I am all in favour at present to keep these institutions nationalised to prevent their boards to just seek additional high risk gains at anyone’s expense to meet personal commission goals, whilst ignoring local needs (mortgages and such).

Even seeing these banks as possible training steps for younger jobseekers on the dole, to give them short term jobs whilst staying on the dole, would give them additional food for job experience. The answers that some view that this is not how it is supposed to be, I would counter, with ‘what solutions do you have?’. We need to change the way we think and operate. Instead of trying to balance which pocket the money is coming from, we should accept that the money is coming from the suit the government wears and see how far we can walk with this suit. Instead of staying on principle of keeping tabs what pocket it comes from, use the principle of it comes from us anyway and focus on instilling knowledge and experience. That will strengthen the young to get a good shot in getting something better with a decent chance. If you have any doubt, then consider that the Netherlands is only one of 3 countries where youth unemployment rates are below 10%. Many of the Southern European countries are way over 40%. If the future of youth employment is about experience, then make sure that the youth are getting a running start now is going to be important down the line. If their future could be a decent job in Germany, then giving them an edge as they compete with desperate youthful jobseekers from Spain, Italy or Greece is essential. Do not think that those kids are any less. Those who graduated from Universidad Complutense de Madrid are more than top Notch. 7 of their graduates ended up with a Nobel price and graduates from there ended up with 2 dozen of other internationally acclaimed awards. So, if we are looking at future events, getting the youth ready NOW will be an essential step.

Yet, this week has even more issues involving banks. A report that is due to be released tomorrow on advised banking changes. The ‘advice’ is to change the mortgage market. In the Netherlands it is currently possible to get a 105% mortgage so that the house and the notary costs and change of owner registration can all be covered. The commission chaired by Herman Wijfels is now advocating that the mortgage cannot be any higher than 80%. This is to prevent that the debt of selling a house at loss would end up hitting the banks. It seems that the banks are all over their need for ‘securing’ for the little man (read the average consumer). Taking into account that the average house in the Netherlands is around $350,000 the question, especially in this era of lack of funds is where on earth will a person get $70,000 in savings when the Dutch taxation system makes it almost impossible to get that kind of money saved up. They also mentioned that this should not be done until the housing market is stronger and prices are on the rise. Like that will help people to get the money. It is interesting that there is no mention of the much more reliable and fair Swedish system. Perhaps the report due out tomorrow will mention it, but I have not been privy to the full report. In the Swedish system a house often has a two tiered mortgage. You have the bottom part which envisions the gross off it (let’s say 80% for argument sake) at a low base percentage. The rest goes into the top part. Now that part (in my case) was almost 2.5% interest higher, but the mortgage was 105% covered. So instead of the unaffordable savings needs, we have a slightly higher mortgage. So, even if we have to accept a slightly cheaper house, we at least can get a house and not be looking at houses, never being able to afford any of it. The question becomes on what it was about. The fact that a report leaks is no news, but that the report leaks just around the same time Bernhard Wientjes is making a play to sell banks is a rather convenient coincidence.

These events are important to consider. This is because the same issues are playing in the UK. Consider that Lloyds is in need of an extension as they are selling 631 branches. This and the issues around the Royal Bank of Scotland do have links, as the UK government needs to cut cost by a lot more than 6 billion (having a Trillion in deficit makes that an awkward necessity). So will we see the same play as some are now seeing if they can sell banking interests at no more than tuppence on the pound? There is absolutely no known plans at present (in case you got scared or overly enthusiastic), but the issues remain, and the solution as such would be there in equal measure. To allow the young unemployed to become part of the bank on internships and training places, so that we can offer a solution where those seeking jobs will have actual work experience in their CV. These measures might seem small, yet the confidence boost that the younger jobseekers gain, could be the winning factor. In addition, extra hands, helping to boost the value of these banks would mean that when sold, they will go for a much better and more realistic value then they are currently set at. All this in a combined effort to strengthen commonwealth economy and their assets, for the simple reason that the European Economic outlook remains grim at best and relying on overly confident reports of economic prospects, that get downgraded quarter after quarter is not doing anyone any good.

 

Leave a comment

Filed under Finance, Politics

Tagged as , , , , , , , , , , , , , , , , , , , , , , , , ,

June 26, 2013 · 16:01

Senator Davis filibuster ignored

So, here I am, sitting down, working on an essay and even after one blog, I now get introduced to the weirdest news by other means. I have several news channels that I take notice of. There is Sky News, Sky News UK, CNN, Fox and BBC World News. However, the latest political news did not reach me through any of these channels. The latest news came through the Twitter account of Gamespot product manager Lark Anderson.

Democrat Senator Wendy Davis (Texas, Fort Worth) has started a filibuster. This filibuster is about stopping legislation that would give Texas the toughest restrictions on abortions in the US. Some of these restrictions include banning abortions after 20 weeks. Doctors would only be allowed to do abortions, if they have admitting privileges at a nearby hospital. There are a few more regulations added to this.

This is in first instance not about the bill itself. The issue is that a filibuster is big news; the fact that Fox (being more ‘republic’ minded then most others) might not make it headline news is to some small extent understandable. Yet, the fact that CNN, Sky and BBC World keep on yapping the same reels and this news did not pass by once is a massive issue. Is this potato too hot to handle? Is this not news?

I am baffled at what makes the standard of what is news, especially as we get repetitive views on Snowden, Paris strikers, Haiti tourism and another bomb in Kabul. I admit that the critically ill Mandela is big news, yet with all the repetitions a 20-45 second reel on the filibuster and bursting out some of the minimum facts would have been too much of an effort?

So, now that I have shamed the press to some degree, it is time to present some of the facts:

Senator Davis has stated her opposition to Republican Senate bill 5 (Source: http://www.davis.senate.state.tx.us/pr13/p20130625a.htm). I admit that this statement is a little too vague and political here (like a politician would), yet the NY Times had this interesting fact to quote “The bill’s opponents said it would most likely cause all but 5 of the 42 abortion clinics in the state to close, because the renovations and equipment upgrades necessary to meet surgical-centre standards would be too costly.”

(Source: http://www.nytimes.com/2013/06/26/us/politics/senate-democrats-in-texas-try-blocking-abortion-bill-with-filibuster.html)

So basically, the bill is not just about limiting abortion, it is a basic form of misconception into trying to ban it all together. I personally reckon that the admitting privilege was added to strangle any sympathetic doctor to step away from this real fast. (That’s just how I see it).

It reads like politics, but to be honest I see it as a dirty variety of politics. Let’s call a scalpel a scalpel, shall we?

To be honest I am on the fence when it comes to abortion issues. I am not against it, yet I feel that it seems to me (from what I read, not from any form of personal experience) that it is at times way too easy to get them.

The issue to me is that if it is legally allowed, then why waste resource on resource on these backstabbing methods, especially as the US has massive economic issues, perhaps some politicians should use their tactics on furthering the economy (or is that too tall an order?)

I am personally in awe of Senator Davis. Not just for the filibuster, but if you consider that when she was as just a teenager (19), she became mother and then still graduated with honours from Harvard Law School. An achievement most do not get when they get to spend 100% time on their studies. This proves that she is more than a tough cookie. She has received at least 2 dozen awards from all walks of life, making her a public servant with sizeable renown.

INTERRUPTION: Just now I see the message that the abortion bill has passed (Foxnews), yet more questions are now being asked, which makes me wonder whether the bill actually passed (I honestly do not know). There was only one other tweet on how the filibuster was halted.

So, this is not just about the bill (which is actually important), yet the fact how this ‘passed by’ newscasts so unnoticed makes me wonder what these news channels are all about. Thank heavens that gamers are about more than games. If not, more would not have been aware.

Information about Senator Wendy Davis at: http://www.senate.state.tx.us/75r/senate/members/dist10/dist10.htm

Those who support her can tweet so with the hash tag that I see reappearing all over the place ‘#StandWithWendy’

The only statement left for me is: “News channels shame on you!“

Leave a comment

Filed under Uncategorized

Tagged as , , , , , , , , , , , , , , , ,

June 26, 2013 · 11:01

Are banks now too much in control?

I mentioned some of this yesterday, some people are just too unwilling to learn and they are very willing to sell you a too pretty a picture. This is what is now starting to become clear and in a dangerous way. Again, not unlike previous events, this blog was inspired by the Dutch NOS (www.nos.nl).

Political parties are now starting to ‘panic’ and are quickly grabbing to solution wherever they can. The issue is that the Dutch economy is apparently even worse then was initially predicted by the Central Bureau of Statistics (www.CBS.nl). Their initial prediction of -0.1% is now -0.4%. Interesting fact is that I predicted something like this in my blog ‘A noun of non-profit‘ on May 15th, just over a month ago. So is this bad news management? To me it seems to be more and more the case.

Diederik Samson of the PVDA (Dutch labour party) is now trying to kick-start the economy by offering alternative sources to spend from. Well, Mr Samson, there are two issues with that idea. The first one, most people do not trust bankers and politicians, now they are seemingly joining hands many have reason to trust both of them even less. The second reason is that the unreliability of the current economy is stopping people to spend anything as long as they are in debt.

The basic issue is that there is too much uncertainty for the next two years. As such people pay their mortgage and essential bills as much as possible. The people are paying off their debts as banks cannot be trusted to play nice. This is the consequence of not containing the massive wave of simply put insane investment sprees. Perhaps some will remember how SNS Reaal needed to be nationalised?

So as the Dutch need to cut 6 billion in expenses, they now seek other way to find spending options to raise the economy and next on their list is the attempt to use pension funds to do this.

Basically, quoting Arjan Noorlander from yesterday’s NOS newscast “The people managing these funds are often investing abroad to get their dividends. This does not help the Dutch economy” He then further states “These funds should invest tens of billions by taking over mortgages from banks, so that they can offer new mortgage investments“.

How is this anywhere near a good idea? Banks, remember them? They are not to be trusted at present, or anywhere in the near future for that matter!

As we have all these bad bank mortgages out and floating, relieving banks from these burdens by losing upcoming retirement funds is more than just a bad idea. Arjan Noorlander did continue and did end with the fact that this is dangerous and retirement funds might get lost in this way, and that it might be an option if the government underwrites these loans so that they will pay the losses if those occur. To me it reads that in the end that another bill will be given to the taxpayers one way or another.

The issues of keeping the retirement funds safe was also mentioned by Alexander Pechtold (D66 = Democrats 1966), he continues by saying that first and foremost there should be clarity on how and if this should proceed.

 

You see, there are two sides to that part. In the first part the Dutch officials shot themselves in the foot for a long time by keeping housing too expensive for way too long a time. It was left to certain groups to keep the prices artificially too high. I myself viewed it as an artificial push to keep housing prices beyond acceptable as it increases the capital position of banks. Then there was the issue of preferential treatment for some places, as there were ways that the ‘right’ people got into those places. I myself experienced these events first-hand. Too many issues played and in a time when incomes were good, people got what they could and as such they are now stuck in a solid position, where moving away will cost any person a fortune. To illustrate this, my former, small, 2-bedroom apartment in Rotterdam would buy me an apartment almost twice that size in Stockholm, Sweden. So considering these facts, moving is not an option for many, which means that people are paying of their mortgage as much as possible.

The second part is that up to 2005, it was way too easy to get all kinds of credits and payment deferrals. These options all come at some percentage expense and as incomes were good, no one really cared too much. Now, to not end up in a situation where these people will have to eat their mortgage, or sell their house (making them destitute), they are now all paying off their debts as much and as fast as they can.

These two factors add to the fact that people will not spend money. Not unlike the government, too much money was taken in advance, and unlike the government, they are not getting to push it forward, so there is no spending. These factors had been known for a long time (at least 3-5 years), so when politicians are all so amazed that economic infusion plans are not working, then that amazement seems somewhat disingenuous to me. The fact that the Dutch are so about housing corporations, to be given the funds to grow is tying the cat to the bacon in more than one way.

This is not allowed to become an ‘opportunity knocks’ situation, especially when they are playing with retirement funds. If they really want to do something that adds up, then give people the option to use their retirement plan to pay of a mortgage of a new house. Those young enough will then have a building future. And it should be managed by a banking branch of those who keep those funds at present. Yet, I reckon that it will raise voices that this is not opening the economy enough. So is this about the banks, the people or the economy? I wonder how quick objections will loudly rise when banks are kept out of the equation. It would give rise to my suspicions that the banks are in more control then people realise.

Again, that risk is very real in the UK as well. Instead of keeping a decent flow of affordable housing, we see an economy in neutral whilst the hill it is up against seems to be rising more and more.

This was discussed in the Guardian, April 27th (http://www.guardian.co.uk/money/blog/2013/apr/27/pensions-system-failed-what-answer) When we look at this in regards to a failing amount of retirement savings as the predicted cost of living has been incorrect for at least a decade, likely closer to 2 decades, we now see a dangerous development. This is a market where over 40% of those approaching their elderly need will have to sell their residence to afford future care.

Suddenly ‘The Best Exotic Marigold Hotel‘ doesn’t sound like the worst idea for people to consider.

This again brings me to the idea of solutions. It is always nice to kick a parliamentarian (a therapeutic form of soul food), but we should consider options and opportunities for solutions.

There was an idea in South Australia several years ago that was quite remarkable. To solve housing, the government gave away land on loan. So basically, you got to buy a plot for $1. The conditions were that you had to place a house on it, and the value of the land was payable when you sold the house. So basically you had a house on free land as long as you lived on it. This solved two parts. One, the housing issues fell away for some, second a house needed to be build, so that was good for jobs and economy. I always thought that was a good idea to get people into their first house. The second part is the retirement issue. Now many prefer to remain where they are. This is fair enough. Yet, consider that instead of eating your house, you are leasing it away or renting it out. Consider that live in places like Greece, Spain and even India could be more rewarding (and warmer) as you live in a place where the cost of living is a lot lower. Lower cost means a better quality of life. I am not stating that this is an option for all, but perhaps it could be an option for a decent amount, giving breathing space to create new ideas and options. Whatever people choose, I hope it is one people will be able to live with in a comfortable way.

 

Leave a comment

Filed under Finance, Politics

Tagged as , , , , , , , , , , , , , , , , , , , ,