Tag Archives: Riyadh

Mining the Ocean

We might look at how Dow dropped 1175 points; we might in equal measure react to the act that Yemeni Houthi’s have decided to perform another attempt to send missiles into the Saudi civilian populations, all factual events of the last day alone. Yet that is not the initial issue that I am looking at. These are short term events and the media loves them because they get to report on the event, the proclaimed solution and the actual solutions. All follow up stories and the media loves them for the coin they tend to bring to their personal pockets. So it was nice to get a look at Saturday’s article by Jonathan Watts who gave us a look at an upcoming disaster (at https://www.theguardian.com/cities/2018/feb/03/day-zero-cape-town-turns-off-taps), not in Saudi Arabia, but in Cape Town no less. Yet it must be said that what is good for the one, could potentially hit the other as well.

So when you initially read the caption, you might think that the quote “In 10 weeks engineers will turn off water for a million homes as this South African city reacts to a one-in-384-year drought” is no big deal. Let’s face it, an event that hits once every 7 to 8 generations is not really a big deal is it. Yet that is not really the part that matters. You see, when you see the pictures, not on merely the empty swimming pool, but the image on the Theewaterskloof dam and how we see on what was and what now is. When we realise that ‘Day Zero, the apocalyptically named point when water in the six-dam reservoir system falls to 13.5% of capacity‘, is upon them just as autumn is ending, is in my view a much larger issue. When we see the people in queues with as many jerry cans as they can carry, that same point of befuddlement is reached when you consider why alarms have not been ringing a lot earlier, or were they ignored? They were not! The official Cape Town page (at http://www.capetown.gov.za/Family%20and%20home/residential-utility-services/residential-water-and-sanitation-services/Residential-water-restrictions-explained) gives us a lot. So as we see “A daily limit of 50 litres or less per person whether at home, work, school or elsewhere” we need to realise that 433 thousand people will still potentially drill down on 21.6 million litres of water every day. I am not putting any doubt on the 10 weeks until day zero, I merely wonder what else could be done to bring that number down and not to forget, that the WWF reported merely 4 days ago that only 39% of the Cape Town residents are adhering to these restrictions. The question becomes, when these restrictions began. For how long was there some plan of no-water, because the article gives us: “Greg Pillay: “We had to go back to the drawing board. We were prepared for disruption of supply, but not a no-water scenario. In my 40 years in emergency services, this is the biggest crisis.”“, it is fair that there was no plan and the fact that this happens once every 384 years makes the non-plan acceptable part, but the fact is that the empty dam pics should have been an alert stage when it had gone down to 50%, the restrictions to the degree as now might have been less severe pushing the reserves forward to a longer time. Now we see that the oddest thing will happen in 10 weeks, the taps will be turned off, no water from the taps. As seen the current 10%, who own up to 95% of all assets can likely afford, that each person buys a 20 ft. container filled with mineral water and ship it to their home, yet the other 90% will not have such an option setting a very dangerous situation, a very flammable and oddly fluid one to say the least.

the one good part is that Cape Town will start getting more rain by the time Day Zero approaches, so with April getting on average 300% more rain than the quarter before, and the steady incline in the months thereafter implies that the worst might be over, the dangers are that mother nature is a bitch on the best of days, so if they end up with a soft and warm winter the Cape Town goose ends up being most literally dry-cooked. There is just one other element. It is the one that they got to live with in Australia, these water catchments have no real purpose if the rain falls in the wrong place, so there is still that risk to look forward to.

So, why mention Saudi Arabia?

Well, Saudi Arabia has a similar drought pressures, yet they have additional issues as well. In Saudi Arabia, according to some sources groundwater extraction far exceed the level of natural recharge. The Al-Asha aquifer in the Eastern Province experienced a drop of 150 meters over the past 25 years. the National Geographic reported in 2015 that by 2012 80% of the aquifers had been depleted. That is one large setting whilst on taps the vein to find out in the first just how reliable those numbers are, but in the second degree as to how the impact on larger cities will become when the news brings them the story that ‘the fore mentioned source of water has been drained‘, because at that point the breakdown will be a lot larger when you consider 433 thousand in Cape Town versus 5.1 million in Riyadh. When that happens in one place, who long until Jeddah, Mecca and Medina follow? The problem is that there is no way to tell because there is no transparent oversight (an issue in many countries), there is no way to reliably forecast the issue and in all this the long terms impact of places that want to upgrade and maximise their economic potential sounds nice, but when the water level hits zero, everything stops, and right quick.

This might be the one long term danger that some are not looking hard enough at. so with: “Under the slogan “Bounties of our land,” Saudi Energy Minister Khalid Al-Falih inaugurated the 12th International Geological Conference on Sunday and an accompanying exhibition at a local hotel in Jeddah“, is nice to propagate the Vision 2030, but it is still 12 years away and at present, the water mining issues as well as the water disruptions that are currently still happening (as stated by more than one source) would impact it all. The growth of infrastructures, the middle eastern heat that is about to hit Saudi Arabia for the next 6 months, whilst the rain will again decide to remain absent until December (speculated forecast), that alone would require a much higher priority to resolve water issues in Saudi Arabia, or at least give it additional priority. The fact that there are 27 plants in Saudi Arabia, creating millions of litres of water every day implies that perhaps it is time to see if this process can be improved upon and more important 9 more plants will be added to the need of Saudi Arabia. Now we can agree that Saudi Arabia has made massive strides here and the fact that they have upped it to 5 million cubic metres a day should not be underestimated. I am merely speculating that if someone finds a way to improve this process by 1%-5%, the impact for the water quality of life for Saudi’s would go straight through the roof, the impact is that large at present. In addition, the fact that for now the 36 plants would suffice in the short term, the long term is still not a given, that is because the need cannot be predicted. Here too it is about the data captured and to learn where the losses to the water cycles are found and how they can be prevented. More important, if mining is an initial issue now, how much of an issue will it be in 10 years, because depleted places could have other implications too, implication mind you! There is a lot that is not known, but it seems to me that both Saudi Arabia and South Africa will have issue to deal with over the coming year. Not just the water as needed for consumption, whatever else relies on water will also impact structural changes and even more drastic show an optional impact on infrastructure. Part of this was also seen last month (at http://meconstructionnews.com/27099/emerson-opens-new-tech-lab-in-saudi-arabia), where Emerson is set to a “new $25 million new technology and innovation centre at Dhahran Techno Valley, in Dhahran, Saudi Arabia enables the company to host Saudi students, entrepreneurs, researchers and industry stakeholders to collaborate with its technical experts to develop process automation technologies and design products and solutions that, “meet the country’s goals.”“. Yet how much priority is given to design new ways to give rise to measuring and monitoring production, distribution and delivery of water solutions towards data collection, designed to contribute to longer term forecasting of water needs. You see, most of these systems tend to be short term, or when they are longer term they lose reliability because of a number of factors, so what happens when we can map and monitor the factors themselves? It is one of the powers that 5G could bring to an automation system, automated drone technologies that monitor and feed. This reminds me of a 2006 paper called ‘Modular learning models in forecasting natural phenomena‘ by Solomontine and Siek. Now in the paper we see in the abstract: “Comparison of the algorithms based on modular local modelling to the more traditional ‘global’ learning models on a number of benchmark tests and river flow forecasting problems shows their higher accuracy and transparency of the resulting models“, now what if the plant is the source of the river and the pipes are the river themselves. What if losses and therefor risks of these pipe systems could be mapped and correctly categorised? Only last year the Saudi Gazette reported (at http://saudigazette.com.sa/article/500157/SAUDI-ARABIA/Water-supply-disrupted-in-five-Jeddah-districts), “Residents of five districts in southeast Jeddah have complained about disruption of water supply to their homes after the National Water Company (NWC) changed its supply schedule. The residents of Al-Musaed, Quwaiza, Al-Nakheel, Al-Raghama and Al-Obaid districts in southeast Jeddah were mainly affected by the supply disruption“, now there can be all kinds of valid reasons why this happens, yet the official response was: “it was beyond their control as the quantity of water they receive from Shuaiba plants was less than what they received before“, the question is not whether, why or the issues of delivery, it is whether quantity of water changes can be measured and set into data models that give better forecasting, this is seen as that nations will soon face provision from 36 plants and any plan to rely on full production and let things run will have longer term problems. Knowing where water is going and what losses are measured will also give rise to initial better information and longer term better water measurement. In my view it is the same with almost every port in the world. It is not how much you ship and how many vessels you service, it is the one place where idle time is not monitored, that is the place where the cost of it all spins out of control really fast.

As I see it, both South Africa and optionally Saudi Arabia have a flaw in the long term view of water, from the articles South Africa is already past the initial point of worry from what I have read and I am speculating that Saudi Arabia has an optional issue growing as it is working towards Vision 2030, because when those tech firms start rolling in in 2031, Riyadh with all its growth could potentially grow by at least 10% in the short term, the question becomes whether Riyadh would be ready to service a jump that is twice the size of Cape Town? I have no way of knowing and it is not yet the point where it is out there, but Vision 2030 is only 12 years away and desalinisation plants do not grow overnight, which would be awesome if someone could design one that did so.

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Disney’s Yemeni Cricket

Roughly 2 years, 10 months, 15 days and 3.4 hours ago, the Houthi’s decided to take over Yemen from the elected government. It is at this point that the then elected government seeks assistance from Saudi Arabia and whatever other allies it can get, this coalition has been at it since it all started. We see all the condemnation on how civilian bombings are happening, yet the part on all this that “Civilians say the Houthis are dispersing weapons in residential areas leaving people fearing for their lives” is not given the light it needs to be getting. You see, that is exactly the same tactic that Hezbollah has been using, yet the media gives little to no light to that element.

Now the game is taking another turn. This is initially seen though the Washington Post (at https://www.washingtonpost.com/world/yemens-war-is-so-out-of-control-that-allies-are-turning-on-one-another/2018/02/03/50d26426-05fe-11e8-aa61-f3391373867e_story.html) with: ‘Yemen’s war is so out of control, allies are turning on one another’, it is not an incorrect view. Certain alliances tend to not remain focussed unless heir is a true common goal and as for the most the Houthi’s have only had any technology to merely fire on Saudi Arabia, there is a loss of focus for the other allies in that coalition.

In addition, with: “But fighting in the southern Yemeni city of Aden over the past week revealed the extent to which Yemen’s war also is driven by other historical grievances that could pose serious obstacles to negotiating an end to the conflict, according to Yemeni and Western analysts”, which is an absolute given and one that many tend to overlook. The complication is seen with: “The uprising by UAE-backed southern Yemeni separatists against forces loyal to the Saudi-based and internationally recognized government of President Abd-Rabbu Mansour Hadi could further complicate efforts to dislodge the Houthis from Sanaa”, you see, as the issues in Yemen grow ever more murky for the people in Yemen, the entire issue becomes a less stable and more dangerous place. With the Yemeni having no way to strike against the UAE, Saudi Arabia gets the brunt of all the anger whilst the UAE gets to focus on what is the most tactical way to move forward and can ignore what is the best path for all players around. In this Saudi Arabia could end up having to deal with the entire matter alone. This leaves them, unless the UAE changes its approach with the tactical question, should the Yemeni situation be resolved, or is it safer for the Yemeni people to annex Yemen into Saudi Arabia into a partially self-governing region? It is a dangerous question, not only because of the implication, but when the humanitarian dangers (Cholera, Polio, Measles and famine) are not just on the horizon, but now on the front door of Yemeni citizens, the iron hand required to save whatever citizens are left alive, it is one of the few historical times when annexing is starting to make sense, moreover, it might be one of the few option that soon enough remain.

Not only does it take care of the separatists, it shows a new side which will in equal measure strikes fear in Saudi’s other adversary Iran. When Iran sees the support and the consequence of its so called actions. Especially if in addition Saudi Arabia opens the doors to all UN humanitarian actions to give care and medical support to the Yemeni people, Iran will not merely have to fear Saudi Arabia, it will be hosted with the prospect of giving aid to escalation in UN humanitarian zones, one fact that would require Turkey to cut its ties with Iran or face massive sanctions from all NATO allies as well as all 28 European community nations, those who would side with Turkey would soon find themselves isolated and in a dangerous economic downturn, one that none of the 28 nations can currently afford!

There is an optional second issue that would evolve from that. As any positive humanitarian action within Yemen shows the good side of Saudi Arabia, the long term condemnations will need to write about other matters and even finally show light on the optional benefits of seeing Saudi Arabia as a place of growth and investment. Even as the Google Alphabet group is already looking at growing its presence, Saudi Arabia is set to grow in other ways too and as both the consumer goods and pharmaceutical groups are seeking growth, the need for manufactured goods for 32 million Saudi Arabians, as well as the options to facilitate to 35 million Iraqi’s and 4 million Kuwaiti’s from the relative safety of Saudi Arabia is an even better prospect for those catering to consumers. That is one way of obtaining growth and even as the falling out with the UAE is an issue for Saud Arabia, there is an optional path where Saudi Arabia could come out on top.

It is not a new concept. The solution had been voiced on a few times last year, yet in many cases there was the outlook of larger opposition from the UAE and Oman, now that the falling out with the UAE is an actual fact, the Saudi government could go into talks with Oman to facilitate some solution that make Yemeni Araba a mere temporary solution as a humanitarian implementation is found to protect the civilian population from further harm. By giving Oman a much larger voice in all this could prove beneficial to both Oman and Saudi Arabia, but only for the non-long-term future.

In all this it will not become a long term solution and all parties will be painfully aware of it all, whilst it does give rise to dealing with the insurrections in Yemen and at the same time show Iran that it stands a lot more alone in its inciting tactics than it previously bargained for. In equal measure it gives Turkey the clear message that it either changes its current course of finds itself in a falling out with both the US and the EEC, a situation that could stop whatever economy they thought they had for the next decade. Turkey could end up buying humble pie at $15 (or €10) per slice. In addition, t won’t just be “French President Emmanuel Macron has told his Turkish counterpart that there is currently no chance of Turkey becoming a member of the European Union”, it will be messages from at least 15 of European elected rulers and there is a chance that the number opposing Turkey as a full European member will grow to 25, with that in mind Turkey will also be out of any marketing race in the middle east making them no longer an interesting party to Russia, other than for the need of consumer exploitation for whatever they have for sale.

Now many parts of this is speculation, even as it is based on visible facts, the idea that Yemen becomes the corner stone of several linked issues is a lot wilder than Walt Disney could have ever imagined in any movie he ever made, including that movie of a boy with a growing nose and a conscience called Yemeni Cricket.

In this growth is already an optional given for Saudi Arabia as Google (with a plus one) is already in advanced talks to set up a tech hub in Saudi Arabia. His also partially confirms my initial view (a few months ago) that Saudi Arabia is ready to set the nation into a mobile 5G growth, making it soon a more technical advanced nation than the US will be in 12 months. Outside the states of NY, DC, Pennsylvania and California there is a growing concern that at least 10 states are nowhere near ready to become 5G players, giving rise not to mere net neutrality issues, but a larger technological downturn of the US as a larger nation, a view that has not been seen since America in the great depression (1929-1939). Do you think that this is wrong or me bluffing in some way? Consider how the budget is currently set and see which states can come up with 5-25 billion in the next 18 months to give rise to 5G, then also look what has to be cut to make such a level of investment a reality and then ask yourself how the US had not planned for this technological need. So when you see the next article on how 5G is overhyped and not essential, consider your next internet session and see what you could have done at 800% of the current speed, hat is beside all the other options hat 5G allows for. Should the US make it a national need, than the national debt will be clearly pushed past the 20 trillion mark! So the only way for the USA to be seen as technologically on par with Saudi Arabia is to dive into much deeper debt.

There are of course other considerations for Saudi Arabia to take a certain path, yet it must be one of the rare occasions where annexing might be one of the few humanitarian options left. A cease fire will not get the result and of course the question is equally important, whether Saudi Arabia sees annexing as an option at all, because that part is not a given at all.

There is of course the second part. If the UAE is able to get control of the separatists and get them on target in the direction the coalition wanted it to be and if the Yemeni separatists see what is their best solution than the entire matter diffuses and as such there is no further issue, yet that is still not a given, but as this situation merely escalated over the last week, there is still time to find a non-annexing solution, which is what suits all parties of that coalition best (personal assumption).

Still, with the other news that Al Jazeera gave a mere 20 hours ago (at http://www.aljazeera.com/news/2018/02/defence-minister-saudi-uae-intended-invade-qatar-180203091422735.html), makes the option of opposing issues between the UAE and Saudi Arabia less likely to simmer down. Yet in equal light the interview that Khalid bin Mohammad Al Attiyah had with the Washington Post, where he is quoted with: “about Doha’s relations with Saudi’s rival, Iran, Attiyah noted that Qatar maintains “friendly relations with everyone”” gives rise that the ‘friend’ of my enemy, is not my enemy, which also means that softening relationships and new ties could change the dynamics of the Middle East as I personally see it. So as Saudi Arabia is trying to get along with everyone except Iran, it could push Iran into more isolation. Even as Qatar is trying to remain friends with all, it also means that Qatar is less likely unwilling to be some kind of facilitator for Iran, a path Iran really had not hoped for and that means that the onus of Turkey’s ‘friendship’ with Iran is now clearly with Turkey, which will push them in even deeper waters, as I personally see it.

So as we end this part of the speculation and forecasting, we will need to see on how talks pan out in the next 2 weeks, the only dangerous part is that the Yemeni civilian population is running out of time faster and faster and inaction equals in their case a diminishing amount of living civilians, a side pretty much all parties are against.

 

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A second view, what can we see?

Some might have wondered how last Friday’s blog was weird (at https://lawlordtobe.com/2017/11/10/two-streams-one-view/). That is not a bad thing; it is not with the reader. The writer (read: that would be me) watched too many data sources and too much information on several sides from several fronts, I merely illuminated one path, one journey ever streams of data. More important, even as the Story was published (read finalised) on Friday morning, we see that Reuters reported (at http://www.businessinsider.com/frances-macron-flies-to-saudi-arabia-to-discuss-lebanon-crisis/?r=AU&IR=T) the mention “French President Emmanuel Macron booked a last-minute flight to Riyadh as tensions between Saudi Arabia, Iran and Lebanon heat up“. I am not so sure how ‘last minute’ it was. You see, I already reported on “Credit Agricole SA is selling half its stake in Banque Saudi Fransi to billionaire Prince Alwaleed bin Talal at a discount“, you see, I reported on part of this and I mentioned the Forbes part which had given me “International banks are grappling with how to approach the Middle East’s biggest economy, which blocks foreign control of local lenders. Some are positioning themselves for what’s expected to be a free bonanza as the kingdom overhauls its economy and plans to list Saudi Arabian Oil Co. in what could be the largest-ever initial public offering” already. This free bonanza is part why some of the most eager people trying to become a wave of new billionaires are there. If they have the Gaul, the vastly above average intelligence and the backers, those three will allow for the next few years to make another 300-500 new billionaires. In that light the move of Credit Agricole to leave did not make sense to me. You see, they are greed driven like pretty much any other bank, walking away from a profit bonanza makes no sense at all. The fact that these parties are trying to unload what they have to Prince Alwaleed bin Talal makes little sense. That is until you realise that these people might have been in business with the 200 arrested individual. Yet in this we see that the entire issue goes further when we see that ‘Prince Alwaleed Bin Talal Arrested in Saudi Crackdown‘, so was the event set up for tactical reasons? Do you think that if he had seen his arrest he would have bothered with the sale as it is? The fact that his links with JP Morgan and their facilitation of the sale means that there is a lot more going on behind the screen. You see that share is well over £372 billion; do you think that the media is showing us all? There might be a crackdown, but is it a crackdown? Is it royal annexing of squandered goods or is its trial and a showdown where the other members of the Saudi Royal family are shown that disruption within the ranks are no longer tolerated. In all this what is next? You see, from the view we are given, the existence of these international banks are essential to creating a non-oil depending economy. A new economy set towards services, technology and pharmaceuticals. There is plenty of value in all this for Saudi Arabia to move forward, yet the track will be a lot longer if there is disruption in the ranks. France might have been hard on Hezbollah and as such they are a pleasing presence towards the Royal family of Saudi Arabia, but more important, Banque Saudi Fransi is merely one of several players with trillions in value available. In military terms France is a better beachhead for Saudi Arabia to enter the new fields of economic growth in several ways. The moment the growth in France is seen the other nations will jump like hungry rabbits to the fields of vegetables in a mere instant. France is leading the way because it is figuring out that the present course is not working.

Yet, is any solution so polarised?

No, it never is. Yet again the situation changed. Iran has not been seen in a good light and their nuclear options have been met with large waves of distrust. Not in light of Hassan Rouhani and the path he is on, but the realisation that there was a Mahmoud Ahmadinejad before him and that level of extremism is a danger to most of the world, and the clear danger and additional risk we see that when another Mahmoud Ahmadinejad comes after President Rouhani. It is not merely a risk, it is closer to an actual likelihood and whilst their nuclear knowledge grows, the danger becomes a lot larger. France and Saudi Arabia see that danger too and they are beyond concerned. They are not alone. At https://www.businessinsider.com.au/saudi-arabia-iran-tensions-2017-11 we see the tweet from Israel’s defence minister, Avigdor Lieberman:

  Lebanon=Hezbollah.
Hezbollah=Iran.
Iran=Lebanon.
Iran endangers the world.
Saad Hariri has proved that today. Period.
 

It is the view we have always seen and as such that truth is pretty much undeniable, so now the moment is primed to get this sorted and to get the changes made earlier, there is seemingly no downside to any of this, political Europe merely preferred to sit on their hands when it came to this terrorist organisation (Hezbollah that is). I believe that Saudi forces are considering that Iran will be more and more limited to create turmoil when there is no Hezbollah. As they can no longer facilitate through others, Iran must openly act and turn the world against them or fall in line with the Arabian Leagues and behave according to those voices. At that point Qatar must also adjust many of their policies, and the impact might not be predictable, there would be enough evidence out there to show that they need to adjust in many ways. I believe that this would end up with Saudi Arabia wielding the only voice of power, dissent in the Middle East would end to a much larger degree. As I personally see it, there would be clear benefits for the state of Israel as well. As the threat to Israel ends, it can focus on growth in a way they have not been able to do for decades. There will be clear impacts for the UK, Russia and the USA too. Their diplomatic games will likely fall on ears much less eager to please them. It will be about growth for the Middle East. I believe that this shift will continue into Europe and several Commonwealth nations as well. India might be a frontrunner to grow the generalised pharmaceutical markets. The US will have to water down their wine to a much larger extent and there are options for the US, but no longer at the vulture driven profit margins they used to have. A shift that will take several years and that is where those ‘free bonanza runners‘ currently in Riyadh could make their billion(s) over the next decade. It will be risky to some extent, but art present you run large risks and end up making nothing in Europe at present. So why stay there?

How right am I?

I could be wrong but there is enough evidence out that that I am more likely than not correct. Business Insider, Forbes and the Financial Times have shown these paths over the last 6 months more than once. There is one premise that needs to be pointed out. The direction that this path opens is based on two elements. The first being how the drill-down on corruption in Saudi Arabia is playing out and their true intent on shifting their economy away from their petrochemical side. The more correct those paths are, the more reliable the outcome is that I predict. The corruption crackdown remains a factor as this has never happened before to this degree. I applaud it but I also realise that as this becomes a success a new Saudi Arabia will rise up in the global markets, one that is not in internal strife and one that is breaking out all borders to grow their economic footprint. It is not the status quo the current powers in charge have ever considered and it will make a lot of ‘old’ billionaires very nervous.

This might not be a bad thing either!

 

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Consideration in 3 parts

There are several things playing and I think it is only fair that I jump a little this time around. In the first jump I will take us into the realm of technology. First the hardware where Keith Stuart gives us ‘is it worth a £100 upgrade?‘ This is a valid question, yet in all the issue is not merely the £100, it is more so “Microsoft has always marketed Xbox One X as an elite product for true enthusiasts and that’s exactly what it is“, which is something I cannot agree with. You see, Microsoft has refused to listen to the gamers, the actual gamers for the longest of times and with the Xbox One X, I expect (read: I hope) that they will get the pounding they have so deserved for the longest of times. The article (at https://www.theguardian.com/technology/2017/nov/03/xbox-one-x-review-4k-console-gaming-upgrade) gives you some of the goods, but not all of the goods. You see, the £450 with a 1TB drive is a joke, it always has been. The article names a few games and there a few sources re stating that Destiny 2 is 50GB WITHOUT the 4K assets. There is no clear way for me to find a reliable number there, but with the OS also taking a chunk of the hard-drive, which will be 300Mb at least, we are looking at a console where one game takes well over 5% of that drive. Forza 7 will take well over 10% of that system, now with all the reserved spaces and mind you not ALL these games are that big, you are looking at a dozen games at the most and that is in many cases not including the extra space that the 4K libraries need, so when I stated even before the Xbox One came out (the first one) that Microsoft was not giving consideration to their gamers, I was not kidding. With the Sony PS4 (both old and pro) we have the option to switch the drive at our own expense to a 2TB drive and these things are a mere $105, so one extra cost has kept me safe and hassle free for well over 3 years. Microsoft never allowed their gamers that option, which could be seen as another indicator that Microsoft is actually not giving true consideration to the ‘true enthusiasts‘ as they label them. There are additional flaws in the OS that give less consideration that the Xbox 360 did, so there is that to consider too. A console that might be seen as overpriced, overvalued and overdue a real upgrade. There are more issues, but they are for another day, for now we await the over-hyped release in 2 days.

The second part is one where I have to show fairness (which I have always done). The second part is Assassins Creed Origins. Now, it is on my list to get as I was not trusting Ubisoft after all the things they have done in the past, with the additional embargo of any publications of the game until the day before launch, their approach was shoddy and shady at best. In this case it worked against them. I have watched well over a dozen videos with Eurogamer and IGN showing the best sides, but also leaving us with questions. Yet I had a few questions of my own and i think they need to be put into the limelight. You see, I have slammed Guillemot and Ubisoft for the longest time for not doing their job (or better stated, the job they were capable of). For relying on average scripted events and what I still label as ‘bad programming’. This is not the case in ACO (Assassins Creed Origin). Now when we pull away from the 4K events (which are close to breathtaking), we see a game that has been through quite the change and as such should get some praise, praise on several levels.

First are the reviews, they are like mine all opinions, and even though I was relentless to AC ratings in the past, from all that is clearly shown these ratings are lower than expected. I see the game somewhere between 88%-92% rated (the non PC versions), yet most remain below it and Gamespot gives it a 70% rating which I personally believe to be equally unfair. Now, we can be hard on Guillemot on a few levels, but they did get this game decent. We can argue all we like, but the team that made Black Flag made this game in a good way and I believe that this game might not be regarded as a real AC game. Origin is the start of it all and that makes it fair game, but the clarity is that there are elements that we relate to Witcher 3, Far Fry Primal and Destiny. The reality is that elements in this game have been seen before going all the way back to Ultima7 Serpents Isle, so there is no real identity linking it to a certain game. Now, I do see the elements of Witcher 3 and that is not a bad thing, whilst we need to acknowledge that this game is not some Witcher 3 game, it is truly an Assassins Creed game (whether the player is an actual assassin or not). The wildlife is more dangerous and relentless and a lot less forgiving, which is a good thing (more realistic), and it seems that as far as I can observe, the locations are as any AC game has almost always been. Graphically sublime, even if you have no 4K solution at present. Even as I have been reluctant to see this last AC as a great game, it seems that should this be the last AC game, than Ubisoft goes out on a high note, and that should be heralded by nearly all gamers.

The final part is not a game. I am also getting less convinced that this is merely a leak. We could have accepted to the smallest degree that the Panama Papers were a leak, yet the amount of data that was leaked leaves us with the larger question on how stupid a financial adviser needs to be to endanger billions of dollars in revenue. I have gone back into time checking on a dozen corporations only to find that there was a healthy dose of paranoia in each and every one of them. Some were paranoid from the start, some were pushed by IT as they wanted the latest of the latest and pressing the ‘leak’ button seems to have worked each and every time. So whilst we have been in the sunshine with newspapers giving us Panama Papers on a daily basis, I found it particularly interesting to see the revelation of the Paradise Papers. So when I read “the complex and seemingly artificial ways the wealthiest corporations can legally protect their wealth”, I am not surprised. I have written about the failing of legislation on a global level for long before the Panama Papers and the Tesco affair. As we are told ‘obtained by the German newspaper Sueddeutsche Zeitung‘ we are not asking the right questions. Obtained how? Who gave them? You see, earlier this year we saw some mention of certain players, yet again and again the media have seemingly steered clear of certain parts of the evidence and it is time to mention it. In March we saw a few papers mention on how Barclays, RBS and Crédit Agricole had a sort of Tax Haven set-up where they had to pay a mere 2% in taxation. I think that this opened a door to some players. I think that the Paradise papers is not a leak, I personally believe it to be an attack on these three players as well as an attack on a few others too. The BBC is giving us part (at http://www.bbc.com/news/world-us-canada-41876939), with the mention of the SIBUR shareholders, we see that there is an issue as the corporations are facing US sanctions, but the individuals Leonid Mikhelson and Gennady Timchenko are not. They represent a wealth that is roughly 50% of what is Microsoft nowadays. It is making a few people more and more nervous. I personally believe that the Paradise Papers is not a leak it is an American corporate ploy, possibly even with the assistance of Rothschild wealth management (a speculation from my side) to push changes that are a lot more interesting to America. Can I prove this?

That is partially the issue. You see, without the clear data on the leak it might never be proven. it is merely too weird that this happened three times in a row (yes three times, I will let you look deeper into certain places to find the first instance). You see the most interesting part is casually shown at the end of the BBC article. With “a huge batch of leaked documents mostly from offshore law firm Appleby, along with corporate registries in 19 tax jurisdictions, which reveal the financial dealings of politicians, celebrities, corporate giants and business leaders“, this is showing not to be a leak, this is a data gathering by a select few and the combination of large data sets. You see, multiple sources which is clearly seen through the use of ‘mostly‘, and added the ‘19 tax registries‘, shows this to be an event that is precise, it is an act of data gathering and filtering. As such, I see this as a precise strike, more likely than not from financial players who have seen certain bank (Credit Agricole being the most visible one) to grow beyond certain measures and that was not the acceptable mindset of the players who want a different shedding of wealth. This is one of the reasons that I have been keeping tabs on Credit Agricole and that is why they have been in my blog several times. Yet, in all this I did not see the Paradise Papers coming and the clarity we see now, is one where we need to consider who is playing us all, and the media most of all. The Guardian gives us more and more mentions of ‘Tax Avoidance’ and as I mentioned a few days ago. It is not illegal, it is perfectly legal. Most papers will hide behind ’emotional’ parts to cry outrage, but in the end they too are not outspoken on pushing to adapt legislation to change this and to push for clear corporate taxation needs, whilst we see that they are all on the second largest data drain set at 1.4TB. So after the Panama Papers, do you think that banks, especially banks of these kinds, banks that rely on such paths to ensure themselves of a good income. Do you think they would hesitate to invest a few millions into hardware that keeps it secure? No, we see more and more technology, more and more Cloud solutions failing to keep data safe. The BBC gave us in April 2016: “In other words, your data could get lost, wiped, corrupted or stolen“. It seems that not enough people are really listening, happy to embrace the marketing of Microsoft Azure and Google Cloud, whilst there is a real concern on safety (for now). Yet, is that how the data was acquired? It is all good and fine to blame a party whilst the data was somewhere else. You see, those IT people (at Appleby’s) would know better, yet when we see the Irish Times (at https://www.irishtimes.com/business/appleby-the-offshore-law-firm-with-a-record-of-compliance-failures-1.3280860), we see “Appleby has transformed itself into a global institution with more than 700 employees across nearly every major tax haven from the Cayman Islands in the Caribbean, to the Isle of Man in Europe, Mauritius in Africa and Hong Kong in Asia“, in that there is no doubt in my mind that IT would have had (or needed) a much higher visibility on their security profile. I wonder, if I got to investigate their non-repudiation systems and logs, what failings would I find. I can personally guarantee you that with every passing check-mark in place, we get to see more and more clearly that this was not a leak, I would regard this as a precision strike to shift billions from one place to the other, because just like we saw with he Panama Papers, when the super-rich get nervous, a lot of them can be manipulated a lot easier than ever before and in my mind there is no doubt, in this Rothschild is likely to be the one true victor and the one party who had the most to win.

I can only speculate on a few matters, but in the light of the global financial industry, Bermuda, Nassau, Riyadh and Nevada are the larger tax havens. The two papers are giving loads of limelight to three of them, so where will those people go to next?

The financial industry is correlating more and more to a video game, it is all about the hardware and scripted events. When we know that hardware is not the initial flaw one remains, making the case stronger and stronger that this was not a leak, it was a scripted event, whether made specifically for certain hardware remains to be seen . I wonder if the media will ever truly look deeper into how the data was acquired, I doubt it, because that does not make for a sexy story, making them in my personal view less of a player and more of a tool, the question that remains is: ‘the tool for who?

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Short Sighted Dangers

For those who have an easy time not remembering things, we need to start to take them back to 2003, US Secretary of State Colin Powell arrives with an infamous silver coloured briefcase, and no one knew what was in it. It was evidence of Iraq and the fact that they had Weapons of Mass destruction. The Guardian, on June 2nd of that year give us: “The Bush administration, under increased scrutiny for failing to find Saddam Hussein’s arsenals eight weeks after occupying Baghdad, yesterday confronted the damaging new allegations on the misuse of intelligence to bolster the case for war“, in all this, under Prime Minister Tony Blair Operation Telic gave rise to 182 fatalities in the UK armed services (2003-2011). Proof of the existence of WMD’s were never shown, there have been stories on both sides of the camp on WMD and in the end, it all remained speculation and conjecture from unreliable forces. The most fitting (possibly wrong) view became, the UK went to war on intentionally bad intelligence. From my personal view it should have been simple and clear. There would have been the mere need to show one clear functional missile filmed by the associated press stating something like: “Here is a Weapon of Mass Destruction, it was captured at [whichever location] by [whomever was there] under command of [some big bird in charge], now let’s talk to this commander on the find!“, it would have been the simple justification, that message never came and speculation and conjecture on a war that was started under the most weird of circumstances might have been justified, that moment never came.

So when the Guardian gives us ‘Rudd’s refusal to publish full report into extremist funding ‘unacceptable’‘ (at https://www.theguardian.com/uk-news/2017/jul/12/uk-terror-funding-report-will-not-be-published-for-national-security-reasons), you could see the issue that history is about to repeat itself. Now, for the most we see all kinds of valid arguments, yet in all this, the one element missing is still the element in the Pork Pie in the making.

The quote “But the home secretary, Amber Rudd, said the move was based on national security and claimed that the full report contained sensitive and detailed personal information” is actually the one that matters the least, the colourful honourable Rudd would be quite correct in setting certain premises on visibility and for that she is not getting into trouble. It is the top line setting, when we see “The statement gives absolutely no clue as to which countries foreign funding for extremism originates from – leaving the government open to further allegations of refusing to expose the role of Saudi Arabian money in terrorism in the UK.” is the most important one and it came from Caroline Lucas, which makes sense on several levels. As co-Leader of the Green Party of England and Wales, she was hitting the nail on the head. Interesting how Tim Farron just did not have seemingly has a clue in this instance (regarding the news info I could find). You see, the entire Qatar situation is linked to all this. The UK will be partially depending on what Germany finds and more important, all the information they might be unable to find, or in the end will not report on. In this the entire Turkey escalations as it enters a place and theatre of War they basically have no place to be in, this all links and the clarity of the report as to the original of the funds has bearing on this. In light of “Some extremist Islamist organisations “portray themselves as charities to increase their credibility and to take advantage of Islam’s emphasis on charity”, and are vague about both their activities and their charitable status, it said“, there should be an increased need to give rise and visibility to the sources. When we see “Instead, there is a strong suspicion this report is being suppressed to protect this government’s trade and diplomatic priorities, including in relation to Saudi Arabia. The only way to allay those suspicions is to publish the report in full” there is a rising stress point on how to find a way to work with legitimate governments, so as such there is a clear need to see if there are false pears in the apple bag. The issue becomes larger with “For a small number of organisations with which there are extremism concerns, overseas funding is a significant source of income. However, for the vast majority of extremist groups in the UK, overseas funding is not a significant source.” This makes the statement an optional interpretation in more than one way (read: the intelligence community loves their ambiguity). In the end, it seems to imply that as extremist groups rely massively on ‘donations‘, there is either not enough data or there is clear evidence that the UK charities are merely a minimal contributor at best. Which is pretty much as good as it gets, to be a zero donator is pretty much a non-option and the fact that donations might not even get to a 4 figure number implies that one spare part of a rifle is the best any extremist group could hope for, in addition the UK groups don’t seem to be getting any interesting level of cash. Yet that does not give rise to the value that is set towards the creation of Lone Wolves in the UK, yet in that there is absolutely no clue whether the intelligence community has even close to a comprehension how those streams go, how the funding and recruitment goes and where to look for decent quality intelligence (or how to obtain it). As I have seen it (to the smallest degree), it seems to me that short term radical pamphlets to see who reacts is as good as it gets at one University in Sydney. This creates the situation that their luck would likely run out long before they become an actual threat. The nice thing about the island of Australia is that those wannabe’s really have no place to run to and it gives rise that an Island like the United Kingdom (significantly smaller in size) they could have less options. As the Straits Times is just now reporting that the Qatar crisis not resolved, we see that the centre stage is now for US Secretary of State Rex Tillerson will now try to find new solutions in the events that are still escalating. Do you not think that the mention of sources could have been a little help in keeping the conversation going? The mention of clear Qatar involvement or absence of it would have made a large impact. In equal measure any evidence of the use of banks in Riyadh might have had another impact altogether, the need for Saudi Arabia to consider the overhaul of certain banking policies (something the US has been desperate for, for some time now), all elements that could diffuse certain pressures. So as we see “UAE Foreign Minister Sheikh Abdullah bin Zayed al-Nahayan told reporters during a visit to Slovakia that Tillerson’s visit was unlikely to resolve the row. “I think it will ease tensions, but it’s just postponing the problem, which will grow in the future.” In a joint statement issued after Tillerson and his Qatari counterpart signed their counter-terrorism pact on Tuesday, the four states called the accord inadequate.” We see no reason that there was anything wrong on the decision that the Honourable Amber Rudd has taken, yet the added information of sources could really impact on a few levels the issues to address or reinforce the term of ‘inadequate accord‘. With additional Turkish troops arriving in Doha, the pressure will go up, because a room full of powder kegs it merely takes one spark and the chance of that spark increases with every additional element in that equation. a threat that does not grow linear, but exponentially. So how does that support the need to keep certain facts hidden? Consider that one element in the summary gives rise to a relief of pressures, the question from Caroline Lucas could soon be the topic of debate in several places in London, and should the powder keg go boom, that debate could become toxic for several key government players soon thereafter.

Yet in all this Qatar is also sending different waves, as owners of Al-Jazeera, we now see (at http://www.ndtv.com/world-news/uae-slams-al-jazeera-for-anti-semitism-inciting-hate-1724062) that there are issues escalating that give rise to several issues to those opposing Qatar. The subtitle gives the one side with ‘The United Nations has warned that demands that Qatar close Al-Jazeera by a rival Saudi Arabian-led alliance, which includes the UAE, violate basic freedoms‘, yet in the article we see the statement by United Arab Emirates’ state minister for foreign affairs, Anwar Gargash, when we see presented facts regarding spiritual leader of the Muslim Brotherhood, Yusuf al-Qaradawi : “he added, had “praised Hitler, described the Holocaust as ‘divine punishment’, and called on Allah to ‘take this oppressive, Jewish, Zionist band of people… and kill them, down to the very last one’“, so when we see that, we see that this all is fuelling even more pressures and as the Muslim Brotherhood is seen as the extremist group it has shown to be in Egypt as well as an openly voicing enemy of the State of Israel, the evidence counter is moving against Qatar. It seems to me personally, that in this present state of affairs, to give rise to the voice of the Muslim Brotherhood, whilst there are plenty of other options (read: less radical ones), Al-Jazeera is either biting the hand that fed them from birth, or that the Qatari government should have had better reigns on those who are in charge of Al-Jazeera. It seems to be a mess that is currently not in favour of Qatar, no matter how you slice it (read: as shown by the western media). It also gives visibility to another part that another Guardian article gave us with “Noura al Kaabi, the UAE minister responsible for media regulation, told the Guardian the station had given a platform to “some of the most dangerous terrorists in the world” and needed to be subject to new and externally-monitored editorial controls“, a view pretty much all parties but one will agree with at present. The final part from the UAE minister is shown with: “Al-Kaabi questioned the value of the memorandum. “We have lost trust with the government of Qatar,” he said. “The difficulty is that it is one thing to sign an agreement, but the true test is whether it is ever enforced. An agreement is not an agreement if it is not honoured.”“, this shows that the work that US Secretary of State Rex Tillerson has cut out for himself is becoming increasingly more difficult soon enough; this reflects back to the overseas funding report, the inclusion of the foreign sources in the summary could give Rex Tillerson the indication that there is either a more intense problem within Qatar, or that there might merely be the issue with some aspects of Al-Jazeera. That difference is the difference between a possible short term resolution or the beginning of a long term consequence, that evidence (if regarded as such) could give rise the second part as Turkey would be forced to take a clear step in one way or another, which would limit the actions of Iran, all optional changes to the absence of one element in a partially classified report. In this I do hope that the Honourable Amber Rudd takes heed from the 2003-2011 partial fiasco that brought the loss of 182 fatalities, because if this powder keg does go, the list of casualties might become a lot higher and not just for the UK, which in turn will give rise to additional escalations in directions no one has any clue on how far that would go.

And remember, in this instance a point of view is merely a vantage point for those seeking an advantage, there is growing overwhelming bias on nearly all fronts, the question that many cannot answer is ‘Which one is based on ambiguity and which can be met with academic scrutiny?’ This is a question that I myself find unable to answer, merely because the original source has been edited out in more than two occasions.

 

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Silence in our hearts

There is no avoiding it. There was an incident in London and this is not some ‘I told you so‘ moment. This is the moment when we need to remember is the 1st of September 1939. That was the date that the war on Germany was pronounced by the act of invading Poland. This is the moment the people had enough. Neville Chamberlain mentioned on the 30th of September 1938 the phrase “Peace for our time“, that fateful day that he held a piece of paper that unlike Celeste value, no longer had value. Those pieces of toilet paper would later be known as ‘the Munich Agreement‘ and the ‘Anglo-German Declaration‘. It took another 11 months for the war to start; I am stating that we are now moments away to be in that same position. Not some dubious moment of diplomacy. This is where we go into any nation that has Islamic State fighters. We kindly tell these governments to get out of the way or be destroyed together with Islamic State. There will be no borders, no disputed ground. If it holds Islamic State, we will come and we will kill whoever is there. You can hide behind Human Shields; we will no longer stop, give consideration or give opportunity. We have come to kill you and your children. We are no longer waiting for the diplomats who failed us again and again; we will no longer await the need of politicians to give one final option. We seek war, because we want it now!

This is not just about the seven dead and the dozens that were injured. This is because this has been going on for too long in too many places. We kindly request, that the French armed forces join us in this upcoming endeavour. We hunt, we get to them. I feel certain that Legio Patria Nostra is every bit as ready as all the other legions and all the other branches. This is where we change the game from intelligence in just hunting and killing. I feel certain that Philippine President Rodrigo Duterte would welcome our arrival. According to Indonesia there are now 1200 IS militants in the Philippines. So let’s start to clean Marawi, and we will happily include Maute in the death toll. They have now resorted to using children; we will come like Hell’s winter to remove them from life. This is because the right of life no longer applies to anyone who is Islamic State. We see too much inactions as ISIL executed anyone who was unable to quote the Quran.

No worries, we will not require a reading test. In case of ISIL, the literate and dyslexic are both equally worthless. I do not care for the political excuse: “It’s Ramadan, it will be over soon“. No, I have several Muslim friends; they suffer (read: are fasting) through the Ramadan day and remain in peaceful loving union of their friends and family in the evening. This is shown in even more daring ways, if we can accept the news in the National today (at http://www.thenational.ae/world/southeast-asia/filipino-muslims-shield-their-christian-friends-in-bold-escape-from-extremists). Here we see: “More than 200 civilians walked out of the besieged Philippines city of Marawi in a daring escape from their Islamist captors, concealing dozens of Christians and saving them from almost certain murder“, that is an action that counts, which gives an annoying silence in our hearts when we contemplate the words by Jens Stoltenberg, secretary general of NATO. We get the quote “NATO allies are now, in many ways, contributing to a very important fight that will take time, to defeat ISIL and extremists“. ‘It takes time‘ because you aren’t going to war, you are trying containment. There is a tactical difference. There was once a tactical advantage to that, but that time is gone. If there is one clear revelation seen from the attacks on Paris, London and Baghdad. Is that containment no longer hacks it. It is time to go on an actual assault with the clear intent to decimate the numbers of ISIS/ISIL.

The third front in the Philippines is happening and it is time to show them what we are capable of. This is not some: ‘let’s not wake up some people‘. No, this is now the clear moment where we are awake and may whatever god you pray for show mercy, because we no longer will!

So, are you now in a state of: “What on earth is happening now?“, then consider this the clarion call for war! The locations in the Philippines, Syria, France, UK, Somalia, Libya and Egypt (Sinai) are an initial focal point. If we decimate their existence in these 6 places, we not only turn the tide, soon thereafter deaf ears will get pleads of mercy from ISIS/ISIL trying to strike a dialogue. At that point it is our side that gets to decimate a little longer, so that they will finally realise that terrorism will never ever work. At best you a get a little limelight, at worst you wake up a monster. Guess what! The second is now a reality. This is not just within me, not just some rage of anger (which is actually partially true). This is the call of people who have had enough of high paid politicians and executives giving long speeches with term like ‘it takes time‘, time that has been wasted since the beginning of the Syrian war where everyone did almost nothing and where the US suddenly had no way of telling who started the Chemical attack, even with all the satellites there, they just could not tell. Well, we know who attacked London and let’s actually do something about that, not just talk about it, not just arrest someone; we put the hurt on the other side.

I personally believe that cleaning the Philippines is a first need. If they get an actual foothold and get traction in Indonesia we would have to face a decade of war in South East Asia, with a realistic chance that ISIS/ISIL growth in Brunei becomes an actual danger. Now we get to part 2 of this, which is seen in ‘Donald Trump berates London mayor over response to terror attacks‘ (at https://www.theguardian.com/uk-news/2017/jun/04/trump-berates-london-mayor-sadiq-khan-terror-attacks), the Lord mayor of London correctly replies with: “more important things to do than respond to Donald Trump’s ill-informed tweet that deliberately takes out of context his remarks“, which is correct. As stated, I am not in some rant; I am in a tactical mode, showing certain high paid players the error of their errors of inaction. If we add the responses by President Trump then I will need another 25,000 words and I just cannot be bothered with that. That is unless the Chancellor of my University will accept it as a thesis. The thesis ‘stupidity of a President‘ might find an appreciative audience in the social sciences, the drama department and the entertainment groups. It might not be of any use to those trying to get a master in Diplomacy, but that is at present not a requirement I reckon. You see, Sadiq Khan as the Lord Mayor has an organising responsibility and a political responsibility. That is why he was elected. I have been in a war mode, in military tactical analyses and looking at where to strike. OK, I am not getting paid for it, but those who are seem to be either silent or allegedly ignorant at what needs to be done. That last one might actually be a wrong assessment. It might be the situation that ‘they do what they are allowed to do as ordered by the political branch of government‘. Is that not the part we forget? The military cannot act against those who attack the UK, because the politicians are desperately seeking a non-military active solution. I believe that we passed that point by at least 5 years. I think we have hit rock bottom when it is the terrorist organisation Hezbollah that is telling Riyadh to seek dialogue and negotiations. I am willing to give a little leeway to Hamas trying to talk to the high officials in Egypt, yet if there is any continuation of rocket attacks by Hamas on Israel, their options will be removed. Yet here too we have issues as Palestinians (not confirmed members of Hamas) have been fighting alongside ISIS in the Sinai, yet the result might he as harsh as we need it to be. We can argue high and low, but in the end, we merely need to consider if we are willing to get our less militant way of life back. ISIS/ISIL will make that impossible. Anyone making any mention that there could be talks is merely deceiving themselves and those around them. We know that war is not a nice thing and that it is the beginning of a lot of ugly things, yet in all this, we did not start this. We might not be entirely innocent, yet we have forever been willing to talk, that path is no longer there because the attackers removed the option. The question becomes: ‘Can we submit to a war‘ that stops it, or will we be confronted by politicians and high brass that implies that ‘fucking around‘ is the better path. If they do, please tell them to submit evidence on when that approach ever worked. I am willing to bet that the number of successes can be counted on the fingers of a man who had his hands removed.

So yes, there is at present silence in my heart. Not because of what happened, but because what needs to be done. There is no validity to rejoice, because only the truly insane rejoice at a war where they have to pick up the weapons to act. That is a political fiasco of an entirely different nature. When your enemy has decided to use children to fight in this war, we can only feel a pain in jour heart to fight, but that is the part we have to do, because we need to be able to spare our children such actions.

 

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Prospecting black gold

There has been news all over the world, some news is good, some less so and at times we cannot see whether news is good, bad or irrelevant. To see the dangers, or perhaps the opportunity of what is what we need to look back to 2014, and start that issue with a quote from the Marvel Movie: Age of Ultron. The quote originally from Tony Stark was: “As I always say, keep your friends rich, and your enemies rich, and then find out which is which“, it is a reference to the arms industry and the benefit of mutual escalation. Keep this in mind when you consider the article in the Independent (at http://www.independent.co.uk/news/business/news/royal-mail-float-scandal-how-hedge-funds-cleaned-up-9303674.html), the title gives us the immediate threat with ‘Royal Mail float scandal: how hedge funds cleaned up‘, and “Speculators were allowed to buy £150m of shares despite Vince Cable’s pledge to favour long-term investors“, I omitted the claim that it was all due to the postman. That person usually rings twice, especially when Jessica Lange is around. Yet the heart of the matter, like in the movie, is not in the ‘boner’ or the ‘bonee’, it is the aftermath that matters. You see, the gem is seen in the local prosecutor and his ploy to get to the truth by going after one side, yet it is Cora’s Lawyer Katz who stops the evidence to get to the prosecutor, which nullifies whatever was attempted. So consider the part we see in the Independent: “around 20 per cent of the shares it had allocated to 16 preferred investors had gone to hedge funds and other short-term investors. This would equate to around £150m of Royal Mail shares – 13 per cent of the entire stock sold by the Government. The companies bought in at the float price of 330p a share. The shares shot up within seconds of trading, eventually peaking within weeks at more than 600p, allowing the hedge funds to bank vast profits at the taxpayers’ expense“, now consider also that this is a reflection of ‘£150m of Royal Mail shares‘. A system that has issues and allows for ‘deal sweeteners‘, now when you see this, and knowing that the bulk of hedge funds managers seem to get away with murder, consider the arrival of Aramco, better stated, the Financial Times headline ‘The $2tn Saudi Aramco question‘, which is now squarely an issue of titanic proportions (intentional pun towards the sinking dinghy). First things first, you see, this is not a fuel vendor like Shell, or a social media company like Facebook, this is the Privatised Saudi oil company that is larger than the sum of Shell, Facebook, Apple and Google. It is a 2 trillion dollar company, now consider the danger of the floating dangers of something like that, hedge funds managers can clean up and those who do will be set for a decadent life, for the rest of their lives. The dangers of something this big is pretty astounding and the fact that it could happen is not that small. You see, the dangers increases as we consider certain facts. NASDAQ gives us: “OPEC agreed in November last year to curb its output by about 1.2 million barrels per day between January and June“, that is because the stocks are a little higher than expected. This happens, oil will always fluctuate, now consider in the US alone there are 32 oil fired power plants. Production is down (for now) and the moment the first heatwave gets to the US, we see a massive spike in power requirements and 32 of those power makers require fossil fuel. In this I am only mentioning the USA, there has been power issues on a global scale, which is always going to be the case, but one of the largest providers towards the demand is going public and that is what speculators really like, because if the supply & demand need is not properly managed, we see an increase option towards fluctuation. Those speculators only need to get lucky once and the mess would be unrepairable.

The Financial Times gives us some of the goods with: “Privatising Aramco is the first step in rebalancing the economy. By disentangling the company, which accounts for more than two-thirds of government revenues, from the state, Prince Mohammed hopes to make Riyadh less oil-reliant, while providing capital for investment in new industries, ranging from technology, where it is pumping $45bn into the SoftBank Vision Fund, to mining. The privatisation of its national champion is crucial to this process” (at https://www.ft.com/content/7ed59bee-163b-11e7-b0c1-37e417ee6c76), but the heart is seen in: “That is even without looking at the question of how much oil actually lies beneath the desert kingdom’s sands“, when we consider that the oil gains in the North sea is slowing down and this is a signal seen in several places, the fact that at some point (in past, present or future) that something similar will happen to the Aramco goods is a certain fact, it is the when that cannot be anticipated. In addition, going public means that you need to be commercial, when it is government no one really cares, but in the public sector the trend must forever be upwards, so when will we see a similar float in Aramco when the numbers are not as great? It has been an utter certainty that nearly all companies go through, some did it calculated knowing they would kill the numbers within a quarter, some hoping they would kill the numbers and some did it whilst they were desperate for a miracle. Yet floating they went. How much of a $2 trillion dollar company in stock value will tumble when that happens?

And these are the circumstances where the acts were valid and not criminal at all (see UK Mail), I am not making any Tesco assumptions here, because the damage in that case will be devastating to the London Stock Exchange. One firm representing close to 70% of its entire market, there would be no London Stock Exchange after such a disaster. Bloomberg gives us the second tier of risks and dangers with ‘Saudi Aramco Cuts Oil Pricing for Europe Where Russia Dominates‘ (at https://www.bloomberg.com/news/articles/2017-04-05/saudi-aramco-lowers-some-crude-pricing-for-asia-raises-for-u-s), a market that Russia already dominates. What would happen if let’s say 3 days after going public, Russia decides to slash their prices for a short time? How would the market react? Not just to Aramco having to follow, but the forecasted annual numbers then take a dive, at who’s expense? Consider that the European market is ‘ruled’ by Russia and Norway, together they make up for 50% of that market and the Saudi part is smaller than Norway and 80% of that 50% market is just Russia. So they can influence the market a fair bit. You see, Bloomberg gives us “There is a risk price wars may resume in Europe, raising the possibility the output cut agreement won’t be extended to the second half of this year“, meaning that in the second half Russia could flood the markets and the streets with black gold. That impact would be felt all over the stock market. There is one part that I am uncertain on. You see, it reads like a small and insignificant part. The quote: “Aramco will tweak the benchmark it uses in the region to make it easier for crude buyers to hedge their purchases” seems small, but consider that hedging is done by a few hundred buyers for up to 25,000 barrels. It seems like nothing, but with 179 buyers it is almost a week worth of crude oil, now the ‘stock is full‘ issue becomes a larger one, because this is a level of fluctuation on stock levels that would impact on the stock prices, the mere stock is full a few weeks ago had a $3 impact (or 4.6%), that becomes a little more than insignificant. Now, I could be wrong here as I am not in the oil, yet you see that this is a concern when it impacts a $2T invested interest by more than just hedge funds managers.

The last part comes from the Guardian. In Jan 2016 they stated “Saudi Aramco is likely to be worth well over $1tn (£685bn)“, this is important as we do not see 1.2 or 1.5 trillion, so this given number implies that in a year Saudi Aramco grow by more than 40%, the exact number cannot be determined. Other media stated that Aramco had grown to 2 trillion last year, but none have given enough evidence to state which number is the reliable one. That too impacts this new market, especially the initial dangers of floating a stock. Yesterday (at https://www.theguardian.com/business/2017/apr/05/theresa-may-lse-saudi-aramco-uk-london-stock-exchange-oil) we see: ‘May and LSE chief woo Saudi ministers for $2tn Aramco listing‘, here we see: “Xavier Rolet, has launched a charm offensive in Riyadh to woo Saudi ministers with the prospect of London hosting the upcoming flotation of Saudi state oil company Aramco, which is likely to be the largest of all time“, the word ‘flotation‘ is given and the danger is now out and about, in clear view of all. So as the UK government is trying to appease Khalid Al-Falih, energy minister of Saudi Arabia (and CEO of Aramco), as well as Yasir al-Rumayyan, the director of the Saudi public investment fund – a sovereign wealth fund, I have to wonder where the Rothschild’s are, because there is no way in heaven or hell that the Rothschild family would be absent of a 5% of a $2T company option and not be a player in something with the ROI of billions, especially after the losses they had with Kurdistan and Africa. They have skin in the game now, and they need a victory in this field, their ego demands it from themselves!

In all this the final part given in the Guardian must not be overlooked, because the quote “Downing Street announced on Monday it had drawn up plans with Riyadh to boost support for Saudi’s much-vaunted Vision 2030 strategic plan for diversifying the Saudi economy to decrease its over-reliance on oil, spearheaded by the deputy crown prince, Mohammed bin Salman, who met May on Tuesday“, as this now offers the level of revenue to fund the ability to become the largest 5G player in the middle east, with options to diversify into Europe, the far East and America. It is perhaps the first time in history that a public company would shoot to a top position in mobile communication, ready to set the market and their values in a few ways on a global scale. For the simple reason that moving into technology and not go for the new tech that will determine the fate of the large mobile and telecom players between 2019 and 2027 seems extremely short-sighted.

 

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