Tag Archives: President Macron

Oh La L’argent

Reuters is giving us the news yesterday that there is trouble brewing in France. The article titled ‘France’s Macron says defense chief has no choice but to agree with him: JDD‘ (at https://www.reuters.com/article/us-france-defence-idUSKBN1A00TE). The best way to trivialise this is by going on the fact that the world’s 6th most spending nation on defence is cutting the defence of France back by almost a billion. Now, for the number one and two spenders in this field, that is a laughable amount. In the national terms it is a little below 2% of that total budget. In light of the UK NHS and other players needing to trim the fat and handover a pound of beef that amount is equally laughably low, yet for France? The article gives us in addition ““If something opposes the military chief of staff and the president, the military chief of staff goes,” Macron, who as president is also the commander-in-chief of the armed forces, told Le Journal du Dimanche (JDD)“, we can see this as hard talk and a kind warning to any opposition, or we can accept that this former financial advisor is setting up the board. He is placing certain pieces in reflection of the events coming in 2018. I wonder if it is merely about defence spending. Even as we see the other quote “General Pierre de Villiers reportedly told a parliament committee he would not let the government ‘fuck with’ him on spending cuts“, the questions are rising on two fronts, fronts that are not them by the way. You see, when we see another source (at http://www.iiss.org/en/militarybalanceblog/blogsections/2017-edcc/july-c5e6/franco-german-cooperation-1efd), we see ‘Can Franco-German cooperation deliver a new European defence?‘, yet the question is not merely the side that matters, it is the quote “German Chancellor Angela Merkel has committed her government to meeting the symbolic 2% defence-spending threshold” as well as “Germany remains far off the 2% spending mark – it is projected to spend 1.2% of GDP on defence in 2017 – and the Chancellor’s main opponent in this September’s federal election, Martin Schulz, has poured cold water on Germany’s commitment to that goal“, this is where the cookie starts to crumble. Is there a consideration that France is cutting costs, to remain on par with Germany, mainly because that would simplify a European Army where the ‘pound’ of all power is based on France and Germany? It works for President Macron, because at that point he could spend it somewhere else, in some form of local Quantative Easing (read: funding economy projects) as well as highly needed infrastructure overhauls. Although, 1 billion will not get this too far, but overall one or two larger issues could be resolved to a better degree, depending on whether he goes for roads or waterworks as a first priority. In all this there is a second issue, which is the combined design of a new 5th generation fighter jet, which will impact both German and France’s defence spending a lot more than anything else.

So as General Pierre de Villiers is contemplating the impact of 2% less, whilst a new jet is on the design table and 2018 will become the year of whatever EU army is up for initial presentation, the amounting costs of that infrastructure change, the General is confronted not with a president, but with a former investment banker that relies on Excel and predictive analytics to set the possible options of a virtual reality against a person who deals in real time events, idle time strategy impacts and an need towards an affirmation of hierarchy whilst having a complete operational army. In all this there is no telling when France gets attacked next and for that the DGSE will need 5 high powered computers with access to a cloud system. With a new encryption that surpasses the current 1024-bit RSA encryption that is used. So yes, that is also going to cost a bundle.

This is not just ‘all about the money’, you see, the IISS article seems to give rise to the Nuclear planning part, but that is not the actual issue that will play. As in any war and any intelligence operation, it will be about the data and intelligence that is acted on, and whilst there is data going back to 2007, that the growing issues becomes a shifting one. With: “Arjen Lenstra, a cryptology professor at the Ecole Polytechnique Fédérale de Lausanne (EPFL) in Switzerland, says the distributed computation project, conducted over 11 months, achieved the equivalent in difficulty of cracking a 700-bit RSA encryption key, so it doesn’t mean transactions are at risk — yet“, the growing deadline was set to roughly 5 years, with the growth of Ransomware and other criminal cyber solutions, we have gone passed the deadline of 2012 and as such, the is now a growing need for matters a lot more secure. when we consider the added quote: “the University of Bonn and Nippon Telegraph and Telephone in Japan, researchers factored a 307-digit number into two prime numbers“, this might be a breakthrough in some ways, yet it still took 11 months to get to the solution, with other solutions like distributed calculating (example the famous Seti@Home program) and the cloud, as well as the fact that the bulk of PC users leave their computers on and way too unsecured, we are facing a combination that could spell cyber disaster. Just consider all those kids working their DDOS attack games. What happens when the computer is not aware because it is no longer attacking places (that can actually register these events), but just silently mulling over data? The person is asleep or at work, now we get that shared options gives us for example 50,000 calculators, changing an 11 month gig into a mere 10 minute job. Now, there is no precedence for this, yet the amount of people that have an infuriating lack of common cyber sense is still way too high (well over 75% too high), so getting to 50,000 computers silently is not the greatest task. It had been made easier by the Microsoft security flaws all over the place and the users not being adamant in upgrading their system when needed, as well as the need from Microsoft to keep on pushing some version of blue (read: Azure), my speculation is not that far away, moreover, it could actually already slowly being used in one way or another (read: extremely speculative suggestion).

Yet, the gist must be clear, the governments, pretty much all over Europe are due a large overhaul of data collectors and data storage systems. Even as we see on how Russia and the US are so called collaborating on quantum computing, those who comprehend the technology will know that whomever has that technology would be able to gain access to any data, it like you using a PC XT, whilst others are all about the Pentium 2, the difference will be that severe.

Yet, this was about France (read: actually it is not). The issue is not just the small disagreement that was going on between two important players within a Western European nation; the fact that it was on a subject and amount that is not that drastic, but Reuters is going with it on the front of its pages. In all this France is also getting the forefront of visibility trying to become the facilitator for the Qatar, which comes with the added danger that France will become more of a target for extremists because of it. Not a given, but it is more likely than not that there is a danger that this will happen.

On the coming year, we see that it will be all about the money, that has always been a given, so it is just telling people that there is water coming out of a water tap, yet it will be growing in the coming year as several nations have overly neglected infrastructures and there is a decent prediction that some part will have to give in, which will require additional budgets. France and Belgium are taking the top ratings on the need to improve their roads and as some roads have been neglected for too long, the road repairs bill could become exceedingly large for those two players. As such, the total debt of France will take a rising hit (one part that France cannot really afford at present) and Belgium would be in a similar predicament. These are the additional elements that President Macron will need to deal with.

Does that not make defence cuts more important?

Well, that is one way to look at it, which is a valid one, yet the rising projects and the growing chance of a European Army start would give rise to either more spending needs in the French defence budget or the French Ministry of Defence could end up having to deal with additional pressure points soon thereafter, in this other nations (including the UK have similar complexities to deal with)

Why the reference to France?

Well, that will become a little more obvious in about a moment, yet it was important to show that the cost cutting on Defence in France is a first mistake (read: blunder) by President Macron.

The article ‘Government offers £2m for scientific research into counter-terrorism‘ (at https://www.theguardian.com/uk-news/2017/jul/17/government-offers-2m-for-scientific-research-into-counter-terrorism), is showing us a first step in regards to solve possible extremist behavioural issues. In my personal view it is a competition that Israel could win hands down as they have been employing certain parts of that with success at Ben Gurion Airport and other places for close to a decade. Yet, doing it in some automated way through data gathering is a new side to that and here is where all the hardware and DGSE comes into play, or in the UK terms, this is where GCHQ could be starting to earn the big bucks (read: £). The quote “The threat from terror does not stand still, so neither will we, which is why we are calling on the best and the brightest from the science and technology sector to come forward with their ideas and proposals to support our ongoing work to keep people safe” is the one that matter, yet overall, even beyond the £2M price, the costs will be decently staggering. You see, this is no longer about intelligence dissemination; it will become the field of real time parsing, gathering and analysing. Yes, the sequence is correct! You see, it requires the analyses of gathered information, parsing new data and overlaying the results, all that in real time. So as I stated earlier by relating this to Paris (and the attacks), it is the applied use of General Pierre de Villiers with the added parsed intelligence in real time. For the non-military trained people. It is like watching a Command and Conquer videogame, yet now seeing the entire map and knowing how the opposition is moving next, whilst in reality you are not seeing the map at all. Look at it as a version of blind chess, Hi-Octane style. Now consider that this is happening in real time at this very moment in London, with all the information of CCTV, facial recognition and back tracking the first attack and then back tracking the faces where it happened, seeing where they came from and seeing how the next event would likely happen and how soon. The computational power would be close to unimaginative large. So when you see ““In light of the horrific attacks in London and Manchester, the government has committed to review its counter-terror strategy,” Wallace will say. “Further to this I am announcing today that we are making up to £2m available to fund research into cutting-edge technology and behavioural science projects designed to keep people safe in crowds.”” we need to consider not just doing that, yet as I stated encryption, it will also require the collected data to remain safe, because the first one to have the manpower and the skill to hit not just in extremist ways with weapons, yet to hit their opponent with a cyber-assault to corrupt the initial data, will not merely have the advantage, it could cripple that forecasting system, implying that crowds will suddenly no longer be safe when an actual attack occurred.

So when we consider “Counter-terror agencies are running 500 investigations involving 3,000 individuals at any one time as they confront an unprecedented threat“, we aren’t being told the entire story. You see, it is not just that, in a crowd event, there would be the need to be able to scan 50,000 people and be able to flag as many and as fast as possible those who are not a threat. To teach a system where to look is one way, where not to look and what to overlook is equally a required skill. To do this in real time, requires loads of data and might not be entirely feasible until quantum computing is a realistic option. When someone tells you that 50,000 people can be easily scanned, we could concur, yet when every person needs to be checked against 200 sources? Consider the lone wolf (or wannabe extremist). Having an initial harmless person in the crowd is one thing, having one that came all the way from Grantham, whilst there is no data that this person has ever attended such an event becomes an issue, now correlate that against the event (like a concert, a humanitarian event or a political rally), how often has this person attended? It might be the first time, which does not make that person a worry, merely a flag that it is out of character. So how many people would have a similar flag setting? Now you get to see the need of exiting gathered data, which gives a rise to knowing those who are merely vested interest people, and optional worries. When you consider that it could require 100 additional flags that give rise to danger, you will now see the need for the computing power required. So how has Israel been successful? Well, they have observers, people who see people walk by, their stance, and their actions, how they look around, levels of nervousness, the way they walk, the luggage they have. The human brain is the most powerful computer there is, the eyes are camera’s that can see more detailed in 3D than nearly any given camera on the market and those persons can read the people walking by. I believe that there is a future where devices can do similar things because they can look different (read: infra-red), not better.

I think that the approach by Ben Wallace, the security minister, is brilliant. He is opening the doors towards out of the box thinking and perhaps set a new stage of technology. There will always be people outside the government who are more brilliant that those within, he is merely inviting them to cast the stone of innovation, I reckon that in light of the technology changes we will see in the next 2 years, the timing is great, time will tell us whether the solutions were real ones too. At least the ball has started to roll and in light of the cut backs by France, the United Kingdom could have a technological advantage that might be a long term solution all others want, which is great too for several reasons of economic growth, which keeps the commercial solution providers interested.

 

 

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Vive la what?

France decided, Emmanuel Macron is now the President of France. I will not shout some ‘hack’ issue. I believe that France made a choice, how well the choice is, is something that the President-elect of France will have to prove to be. Not the lame statistics on how young he is. The Guardian gives us some of the optional bad news (at https://www.theguardian.com/world/2017/may/07/theresa-may-congratulates-macron-on-victory-as-eu-breathes-sigh-of-relief) where we see: “Happy that the French have chosen a European future. Together for a stronger and fairer Europe.” No, they did not and your rhetoric only is a first piece of evidence that the EU and the ECB are considering a former investment banker to be the reason to play your games, forcing people deeper in debt and slowly turning the EU into something despicable. For the most, the article is fine. Today will be all about congratulating President Macron, whilst those shaking hands, calling the Palace or sending letters are desperately trying to get a few political punches in. That is part of the game, yet the dangers due to the greedy need of the USA is about to become actually dangerous. Marine Le Pen could have sunk those dangers, although it would come with other issues, there is no denying that. Yet the economic health is going to be a first, in that Crédit Agricole, BNP Paribas and Natixis would guard against that happening to France (after they take care of themselves and their needs), yet will it be enough? The quote that President Macron is giving now is: “I do consider that my mandate, the day after, will be at the same time to reform in depth the European Union and our European project,” Macron had told reporters, adding that if he were to allow the EU to continue to function as it was would be a “betrayal”. It sounds nice, but over time and especially as we watch delay after delay will we see if he is actually made of stern stuff. Time will tell and there is no way that it would be regarded as fair to see any initial headway until at least 10 days post forming his government. Yet there is a side we must take heed from. It is seen in the quote “he spoke out against a “tailormade approach where the British have the best of two worlds” creating “an incentive for others to leave and kill the European idea, which is based on shared responsibilities”“, this sounds nice, but responsibility also implies accountability, a side that has been absent from the EU and the ECB with ongoing lack of transparency for the longest time, in that Brexit remains a valid step.

So why do I seem to be freaking out?

That is partially true. Not because of Marine Le Pen not making it, which might have solved a few things. It is the part I mentioned yesterday with the Financial Choice Act. As a cheat sheet (at http://media.mofo.com/files/uploads/Images/SummaryDoddFrankAct.pdf)

shows us: “The Dodd-Frank Act creates the Financial Stability Oversight Council (“Council”) to oversee financial institutions“, that part is now effectively gutted from the Dodd-Frank Act. The damage goes a lot further, yet as I see it, the people in the White House have just enabled the situation that what happened in 2004 and 2008 can now happen again. When that happens the Euro will take a massive hit too. With Brexit part of that damage can be averted and in layman non diplomatic terms, we can state that as JP Morgan is getting the hell out of Brexit, the damage they could potentially cause in the near future will be on the books for the places that they go to or remain in.

One of the dangers is seen in the key principles of the Financial Choice Act. With ‘2. Every American, regardless of their circumstances, must have the opportunity to achieve financial independence;‘ we can read it in a few ways, one of them being that this is the sales pitch where the Greater Fool can invest in something, using funds that person does not have whilst endangering whatever financial future they thought they might have had. It basically opens a door to get some of the suckers’ bled dry fast. In addition with ‘3. Consumers must be vigorously protected from fraud and deception as well as the loss of economic liberty;‘, I do not see protection, I see a setting where basic protection is in place, yet as we have seen with the issue in 2008, the amount of people who lost it all whilst prosecution failed to protect the people and convict the ‘transgressors’ nearly 100% is just too stunning, and it is a lot more dangerous now as the global population has nowhere near any level of reserve of protection compared to the last time around. In addition, when larger firms start playing this game, they will drag whomever they passively claimed to protect (like retirement plans, like mortgages they held) with them.

There is another side which takes a little longer to explain. Yesterday someone tweeted an image I remembered when I grew up. You see it is all linked to what I was part of in the 80’s. I saw the application of segregation, isolation and assassination in a less nice way. It drew me back to my childhood, when I was introduced to practices by the Nazi’s in WW2 during my primary school history lessons. To identify the Jewish people, they were told to wear the Yellow Star of David. When I saw the image my thoughts started to align, unlike the puzzlement of the population at large in 1941-1943 as the star was made mandatory in several nations, the people were uncertain to the matter, with the exception of the Dutch underground who would not trust any German for even a millimetre, they were able to hide 25% of the Jews, so in the end well over 100,000 Jews were deported. From those only a little over 5,000 survived. The Dutch underground was able to keep close to 30,000 hidden, with well over 2/3rd surviving the war. Most people, would not learn of the actual fate of the deported Jews until much later, many remained in disbelief for many years after the end of WW2 in 1945. You see, it is that phase that I feel we are in now, we seem to be in disbelief as laws are past to give a sector of industry more leeway, whilst they (according to some sources) made 157 billion in profit and that is in the US for 2016. So you want to open the tap for a system that is less regulated, non-trustworthy and have shown in 2008 to embrace all greed at the expense of anyone else? How is that a good idea?

 

 

So what evidence is there?

Well, there is Senator Warren (Democrat for Massachusetts) who called it an ‘insult to families’, in addition we see “so that lobbyists can do the bidding of Wall Street“, which is still a political statement. When we see the partial part (at http://financialservices.house.gov/uploadedfiles/financial_choice_act-_executive_summary.pdf), we see “Provide an “off-ramp” from the post-Dodd-Frank supervisory regime and Basel III capital and liquidity standards for banking organizations that choose to maintain high levels of capital. Any banking organization that makes a qualifying capital election but fails to maintain the specified non-risk weighted leverage ratio will lose its regulatory relief” It is the very first bullet point and leaves me with the situation that banks have no right to relief when they take a certain path, yet they still get to gamble. I especially like the part in section 4. “Make all financial regulatory agencies subject to the REINS Act, bi-partisan commissions, and place them on the appropriations process so that Congress can exercise proper oversight.” Yet, the REINS Act only passed the Senate, yet is not law at present, in this it is called on to do what? If the Financial Choice Act is set into law before the REINS Act, the US will have a gap the size of the flipping Grand Canyon, in addition, from the McIver Institute we see the opposition from the Democrats with “The REINS bill is similar to legislation moving through congress, but with lower thresholds“, yes, that has proven to be a good idea in the past! Still it is a view of Democrats versus Republicans and it is a Republican government (House, Senate & White House), so wherever are the clear academic dangers? We get that from Mike Rothman, president of the North American Securities Administrators Association and Minnesota commissioner of commerce with “It is clearly evident that the changes contemplated by the bill would significantly undermine and compromise the ability of regulators to effectively enforce financial laws and regulations“, whilst the I saw the term “this voluntary state-federal collaborative framework“, so the collaboration is voluntary, not mandatory. In the last decade, when have we seen a proper level of protection in a voluntary state of any matter?

The beginning of the dangers are shown by the Consumerist, which took a look at version 2.0 of what many regard to be a travesty. In this we see:

  • Require the Consumer Financial Protection Bureau to get congressional approval before taking enforcement action against financial institutions
  • Restrict the Bureau’s ability to write rules regulating financial companies
  • Revoke the agency’s authority to restrict arbitration
  • Revoke the CFPB’s authority to conduct education campaigns
  • Prevent the Bureau from making public the complaints it collects from consumers in its Consumer Complaint Database

The one I had a stronger issue with is the one that tosses responsible spending around. The issue ‘Remove requirements under the Durbin Amendment that guided how much credit card networks could charge retailers for processing debit card transactions‘, so basically by charging stronger on debit cards, people will see a need to pay cash or force the credit card risk on people who for several reasons prefer not to do so. In addition the restrictions to arbitration will give leeway to Financial Institutions to avoid all kinds of courts as the victims (called consumers and investors in this case) any right to hold the financial institutions to account. It is rigging even stronger an unbalanced system. Marc Jarsulic, Vice President for Economic Policy at the Center for American Progress called this ‘a system that removes protections against taxpayer-funded bailouts, erodes consumer protections, and undercuts necessary tools to hold Wall Street accountable‘, which was already an issue at present making it a lot worse. It seems that the junior workers of 2008 are now in a place where they would prefer to fill their pockets before their luck runs out. The last bit is purely speculative from my side and it might take until 2020 until I am proven correct, yet at present 2 years is a long time to await the dangers of a greed driven system to get a little greedier. It is in that that segregation from the Euro will become essential soon enough, especially as there is no one muzzling the ECB and its crazy need to spend funds that they do not have and will not have for years to come. As for the news we see appear at present on Bloomberg shows my correctness from another side. At https://www.bloomberg.com/politics/articles/2017-05-07/a-reverse-trump-tax-plan-delivers-an-economic-miracle-in-sweden, we see how a reverse of the Trump ideal works a miracle in Sweden. Now, it sounds a little too good to be true and it is. You see, I am not against the principle that Sweden has, yet in Scandinavian terms, the Swedes are uncanny social. I once joked that a woman can get married, after a year she gets the bun in the oven and gets paid maternity leave. If she starts making buns non-stop, she will never work another day (as long as she gets pregnant immediately after giving birth), 20 years and 22 kids later, she still has an income, a sound and secure retirement fund with only one year of work. It is almost true and I admit far far fetched. Yet the social side of Sweden allows for this. Because that one person will be the utter outlier in any statistical graph. The Swedish solution works in a social educated country like Sweden. In America which fosters self-centeredness and greed, this system would be abused at the drop of any hat and the system would collapse. You see, Bloomberg does not mention, that unlike America, companies in Sweden do not shun taxation (IKEA seemingly being the exemption to that rule), which is also a huge difference. In addition, Swedish Civil Law has a sizeable extensive system of Administrative Law which would also contribute. As we see commerce in Sweden increase, the Swedes will automatically feel the brunt of that in a positive way (as I personally see it). Yet it is not all good and summer there, as Magdalena Andersson faces a vote of no confidence if certain changes are not stopped, or even more adamant, be rolled back to some degree.

It is this combined view that France is now seen as ‘Vive La what?’ It is very much on how certain banks and the ECB are called back to stop endangering the future of too many people, Quantative Easing be damned. It is in that environment that the Financial Choice Act is an upcoming danger as Wall Street gets to be in charge of how money flows, in what direction, risky or not. As for what happens between now and 202, I truly hope that I am wrong on every count, because the 2008 global losses which have been estimated to set around $15 Trillion could easily be doubled this time around. More important, as global national reserves are none existent, the impact will hit the consumers and retirees in ways that they cannot even fathom, it makes the hardship in Greece look like a cakewalk as I see it. I will happily be wrong, yet the visibility we already see at present sets me more likely than not correct, which is really scary, not just for me.

Oh and if you doubt me in this (which will remain forever valid), why have we seen massive levels of misinformation from papers with ‘NO ONE wants to risk GREXIT’ Economist says Greece bailout will go ahead to SAVE Eurozone’ (source: The Express), whilst we know that you cannot be set out of the Euro or Eurozone involuntary, and ‘saving Eurozone’ is a little strong is it not? Or the Daily Mail that gives us that Brexit is a gift to the Greeks. This is not merely a point of view, certain sources are adamant to misdirect the focus of the people, if the Euro was such a gift from the gods, misdirection would not have been needed, would it?

 

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