Tag Archives: Spain

May 26, 2015 · 23:46

An Olympic steeplechase

Greece is at it again (or still might be a better word)! Let’s turn back the clock a mere month! On April 28^th we get the following news (via several sources): “Greece has decided to pull Finance Minister Yanis Varoufakis back from bailout negotiations, a move it describes as ‘clipping Varoufakis’ wings’ and ‘reining him in’ after three months of debt talks failed to produce an agreement”.

That move made perfect sense, several people (including me) saw him in some rock star presentation which was good for his ego and not too good for the Greek people. Of course, reining in does not mean ‘keeping him quiet‘, which I would not do (for the shear entertainment value alone), but also because he is the selected spokesperson of the Greek economy. So when we see the news in the Guardian a few hours ago stating: “Greek bond weaken after Varoufakis blames creditors“, my first thought was ‘can’t the man shut up?’

The quote given is “The problem is simple: Greece’s creditors insist on even greater austerity for this year and beyond – an approach that would impede recovery, obstruct growth, worsen the debt-deflationary cycle, and, in the end, erode Greeks’ willingness and ability to see through the reform agenda that the country so desperately needs. Our government cannot – and will not – accept a cure that has proven itself over five long years to be worse than the disease”

In my own view I state that he squandered 95% of the time he had with posturing, he forfeited the game buy thinking that Greece is too big to be ‘Grexitted’. Guess what Yanis! The Dutch SNS bank thought that very same notion! It did not pan out too well for them either!

Now we get the second quote, this one from Dimitris Stratoulis. He states “If we decide that there is no money left for the IMF, we have repeatedly said that our priority is to pay salaries, pensions, health, and education”. To be honest, I cannot completely oppose that! Although my priority should state Pension, Salary and Health, with a question mark to what salaries are to be paid, but I understand that the people should normally go first. I do not oppose this! Yet Syriza has been playing what I regard to be a pissing contest with people who did not need to play that game and had no interesting in playing that game. There is additional evidence. Perhaps you remember the case of Leonidas Bobolas, who got arrested in April 2015 for 1.2 million in tax evasion? That short term theatrical play just as the ‘negotiations’ were going on. I reported it in my blog on April 27^th in the article ‘Finding inspiration‘ (at https://lawlordtobe.com/2015/04/27/finding-inspiration/).

How many arrests since then?

The news is awfully quiet around it. There has also been zero visibility on praising Kostas Vaxevanis on his findings and his reports. It seems to me that the members of Syriza have absolutely no intent of doing anything constructive at all towards their creditors. So when we see the statements “Greek finance minister Yanis Varoufakis has apparently pledged that Greece will meet its €305m repayment to the International Monetary Fund” by Yanis Varoufakis as well as “Tsipras instructed officials to act speedily as his government sought to defuse tensions saying it would do its best to honour its debts – even if it failed to reveal how, exactly, it would find the money to pay €1.6bn in loans to the International Monetary Fund next month” (Helena Smith, the Guardian).

Yet these two parts are already ignoring the 750 million pushed forward because the invoice of May 12^th was not ‘paid’! It was settled using the IMF emergency funds, which means that this money is also due. In addition on May 12^th, 16^th and 19^th are the amounts of 348, 581 and 348 million due. That is just the IMF, the maturing bonds as well as the ECB have not been taking into account in this matter. In addition, more bailouts are already known to be needed, so as Varoufakis is boasting, threatening and claiming, I notice that many are ignoring the observation some made “the creditors’ insistence on even more austerity, even at the expense of the reform agenda that our government is eager to pursue“. This is at the heart of the matter, because Greece is facing a 22 billion annual interest invoice, which it has no way of paying. A fact many are simply ignoring. So as non-actual payment of three quarters of a billion were made, we must wonder where that comes from. Let’s not forget that on June 12^th 3.6 billion in T-bills mature!

Another non-reality comes from that same Guardian when we see: “Traders are also blaming Klaus Regling, the head of the European Stability Mechanism, for today’s euro selloff“, which is specified in “There is little time left… That’s why we’re working day and night for an agreement. Without an agreement with the creditors, Greece will not get any new loans. Then there’s a threat of insolvency. There are a lot of risks contained in that”, which is a reality I have pleaded for, for some time now. The funny part is that the New Democracy HAD it for the most sorted and the Greek people were suffering, no one denies that! Yet the courts have not made any attempt to hold previous administrations accountable, the tax evasion schemes had one trial so far and 1.2 million does not go far.

There is one final part that is an additional danger. It is not reported on, because in all honesty, the actual danger is not known yet. But did you consider how tourism will do this year? How many thousands of tourists will consider avoiding Greece (the Germans being a first nation that comes to mind)? You see, no matter how we regard the Germans, they for the most had jobs, had incomes and will desire a warm vacation. The Greek approach will work out nicely for Spain, Portugal and Italy I reckon, but with the acts of alienation Greece is cutting itself in the fingers. In addition, the dangers of drying ‘wells’, like the fear of empty ATM’s and other means not operational give added fear to the tourist population. Even though Crete should remain reasonably safe, the reality is that no part of Greece might be safe if clear progress is not booked within 2 weeks. I do hope that it will not pan out to be too bad for Crete, Stavros Arnaoutakis has been an active fighter for the prosperity of Crete for a long time and it was his birthday yesterday, so: “Happy belated birthday Stavros!” He was born in Archanes, due South of Iraklion. You might wonder why I bring this up. I will repeat the issue I voiced well over a year ago. It is becoming more and more visible that the power of Crete might reside in its independence. Crete has a founded tourist base, it has a functioning harbour for commerce and functioning airports for commercial ends too. This independence would not break their Union with Greece, but unlike the independence of Scotland, Greece has a much better chance to setup its independence at present, without too many nasty negative sides. Whatever options Syriza is currently destroying, Crete could set up a working base of minimal credit and continue for now. It will be hard, no one will deny that, but if Crete can sway a few services towards the Cretan island, it would for the better part be decently self-reliant.

This is a much better position than the position Greece had in the past, which team Tsipras/Varoufakis efficiently destroyed as I personally see it.

I also believe that the dedication Stavros Arnaoutakis has shown for a strong Crete could go a long way with whatever creditor conversation might be needed. As Crete moves straight into the Drachma, which would then be called the Cretan Drachma, would start to build on a future for both social enhancements (within Crete) as well as built on the decent foundations that Cretan housing has as well as a shift towards a services oriented future. Consider the mild climate Crete offers with water views all around that island, how long until 2-3 retirement villages would rake in jobs, commerce and income from retirees who would like their last few years in decent sunshine?

It is not enough to warrant full independence, but it is a start, if only to make the reliance on tourism 10%-20% smaller. Consider call centres that could work in that time zone and the better weather conditions. Before too long, students from all over Europe will seek a call centre all day and party all night vacation. I admit it is not the business call that matters here, but good commerce is where you built it!

Now, this might not be a great idea (perhaps not even a good idea), but I am trying to find a solution! I hope that there will be options for the Greek people, because Syriza is quickly and as I see it possibly intentional discarding whatever solution is left for the Greek people. If you doubt this, then consider the following facts:

* Less than an hour ago, I see in the Guardian, the following release: “Mujtaba Rahman, analyst at Eurasia Group, reckons that Greece will probably reach a deal with the Eurozone in time” (I am not convinced), in addition we see “We continue to believe Tsipras will lose around 5-10 lawmakers from his coalition when the package is presented to parliament (potentially attached to a vote of confidence). But we suspect he will lose less than 12 MP’s allowing him to keep his parliamentary majority“. As I see it, this should be about protecting the Greek people, now we see the cold reality (not an invalid one) that this seems to be more about playing with votes and keeping a ‘parliamentary majority‘!

This is why I felt that Antonis Samaras was the better option. He was trying to find solutions, not be ‘the popular guy’! You think Antonis Samaras was making friends when he was in office? No! He inherited a 400 billion invoice (very rough estimate) with no way to pay for it. With floating the credit ceiling and pushing non actions, Tsipras in his short time (with of course support by Varoufakis) has added close to 20% to that total debt. Now, in all honesty, he did not cause that 20% directly, but by sitting on his hands and playing theatrics he has not helped resolve any of it.

But we must also adhere to reality. The following we get from Bloomberg if Greece misses a payment: “A missed payment date starts the clock ticking. Two weeks after the initial due date and a cable from Washington urging immediate payment, the fund sends another cable stressing the “seriousness of the failure to meet obligations” and again urges prompt settlement. Two weeks after that, the managing director informs the Executive Board that an obligation is overdue. For Greece, that’s when the serious consequences kick in. These are known as cross-default and cross-acceleration“. This is a true reality, yet is that per payment?

Consider that this happen on June 5^th and we get to June 19^th? At that point two T-bills will have matured for the total amount of 5.2 billion, the second one of 1.6 billion on the 19^th itself. When the 5^th is missed, what will the markets do then? In addition, on June 19^th a total of 910 million will be due too (16^th and 19^th of June IMF payments). In addition, what will happen to the interest levels when the two week term passes?

No one denies that the payment pressure is too unreal, but the Greek government themselves was cause to all of this (not Syriza)! That is at the heart of the ignored facts (read: unmentioned). These facts are exactly why Crete should consider protecting the Cretan population if at all possible. In addition, the separation could give additional credit to the Greeks on Crete and it might (not a guarantee) instil a lesser negative impact on tourism, which would be a massive plus. A few extra options could be set up there, but that would be up to Stavros Arnaoutakis and his peers to decide.

So how will we see this steeplechase unfold?

The ‘die hard’ positive proclaimers are singing the same song again and again, the doomsayers are hammering on what cannot be and both are interestingly avoiding key issues. Whether they feel repetitive on them is beside the point. I try to remain on the fence (which is hard with Syriza), yet I do try to find solutions. Will they be useful? Not for me to decide, but at least as a non-Greek, I might be one of the few trying to find a non-exploitative solution, which puts me ethically, morally and spiritually ahead of the pack.

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Tagged as Alexis Tsipras, Antonis Samaras, Archanes, bloomberg, Crete, Dimitris Stratoulis, ECB, Eurasia Group, European Stability Mechanism, Finding inspiration, Germany, IMF, Iraklion, Italy, Klaus Regling, Kostas Vaxevanis, Leonidas Bobolas, Minister Yanis Varoufakis, Mujtaba Rahman, New Democracy, Portugal, Scotland, Spain, Stavros Arnaoutakis, SYRIZA, the Guardian, Varoufakis, Yanis Varoufakis

May 3, 2015 · 08:32

The Trans European Crash

It is a work of power, but not from any one station. The Germans would call it a Kraftwerk, but this is not an express as envisioned by Florian Schneider or Ralf Hütter. No it is a subtle hidden crash, pushed by those who need the status quo, not the fallout before they leave with a huge golden handshake.

You see, people forget how things are interconnected. We forget too often that the machine is based on values that are virtual and on foundations that are a generation old, we all forget that!

It is now 2 days ago that we see an article (at http://www.theguardian.com/business/live/2015/apr/30/markets-await-eurozone-inflation-as-greece-takes-on-brussels-live-updates), the title ‘Eurozone edges out of deflation – as it happened‘ is not informative, it all seems like a collected pile of lose facts, are they connected?

They are to some extent, but not in the view people have. Let me enlighten you!

“The Greek government was struggling on Thursday to complete payments to more than 2m pensioners after claiming that a “technical hitch” delayed an earlier disbursement“. I will not attack that. We all have our doubts, but we need to consider that technology glitches, it always does so at the moment it hurts the user the most. Yet the response ““Normally I only withdraw half the money at the end of the month but today I’m taking it all” said Sotiria Zlatini” gives us pause, the expected bank run is coming and this might not be the bank run, but Greeks all over Greece fear that the bank run will happen whilst some pension money is still in their bank accounts. This gives a view of 2 million pensioners holding on to their money for dear life. You see, a small element is that at this very moment that this is written the Greek government was due to pay 200 million. Had that payment been made?

If an ‘extension’ has been granted, you can be sure that this will upset the Conservatives with David Cameron and it will fuel UKIP with Nigel Farage. Two non-related entities, yet they are all connected through other strings. Yet, the news we hear from Reuters is “Greece’s next payment to the International Monetary Fund, totalling some 200 million euros in interest payments, is due May 6 because of the May Day holiday in Greece, an IMF spokesman said on Thursday“, so, because of one day, they get an additional 5 days. Do I now have your attention regarding the ‘Status Quo’? Still, the ‘technical glitch’ the Greek bank has could be for real, but now consider the 2,000,000 accounts that will withdraw all funds, how short will the Greeks be to make payment? Yet, another part of the Guardian already informs us of a third bailout negotiation, something we knew, but the timing is so auspicious, we will see if the Greeks made payment before the €7.2bn (£5.2bn) in funds are released. Perhaps a third party deal through an investment bank will see the 200 million released on May 5^th, for perhaps a mere 243,546,576 dollars? Any takers at Goldman Sachs perhaps? I am not sure if that will happen, I am merely speculating!

You see, this goes a little further, it is not just the message of “Eurozone inflation picked up in April to 0%, from -0.1% in March. It brings to an end a four-month run of deflation“, which I got from Eurostat. You see, which of the 28 Euro players have rounded up their numbers? Likely more than one, so was the inflation 0%, or was it perhaps -0.048%? It is in the margins that we see the game being played, but playing it all from the margins is a dangerous game, because trimming the fat always leaves us with one player that takes the smallest slice of beef, now we are bleeding and one player goes ‘Oops!’.

We get the next piece from Germany. The statement “The number of people out of work in Germany dropped by 8,000 on a seasonally adjusted basis in April, to 2.792m. A bigger fall of about 15,000 had been expected“. I have two issues with this. the first being that these 8,000 mean 7.5 million a month less drainage on the German Treasury Coffers. These people now have a job, which is good for all parties, which means they will get extra groceries, perhaps treat themselves to a slice of cake to celebrate, which every person should do if they get themselves a job. It is the second part, the prediction ‘A bigger fall of about 15,000 had been expected‘, why? What data precipitated that thought?

You see, the people doing the forecasting as a whole have not been doing that great a job. They failed on multiple levels for years, mainly because of ‘unexpected’ conditions.

Now we get to Spain, where we see the quote “It shows that reforms work, it should help reduce unemployment much further and thus political fragility and it serves as a shining example to Greeks of what their country could have if its government finally returns to the path of virtue“, which is nice, but in this case, the given quote from Christian Schulz, economist at German bank Berenberg is one we also need to take caution with. I would like to claim this as a mere fact, because my ego would like to see Tsipras and Varoufakis cut down to size (am I too honest?). They played a very dangerous game on behalf of people who cannot afford to lose as they have nothing left, yet in my view Antonis Samaras had the right path. It was a painful path for all Greeks, but it was slowly getting Greece back. Now the Greeks face fears they never faced before. This is however not about Greece, this is about Spain. In my view Spain had nowhere left to go but up, or die. At 23%, one in four does not have a job, those with jobs work many long hours to keep their job, many products are still not getting sold because many people cannot afford it, so Spain is getting back on board, but ever so slowly and let’s face it, beating a 0.3% prediction, making 0.5% is not great, but it seems that exceeding predictions gets to be rewarded. The reality is that 0.5% is 2.5% below the currency inflation, so we have nothing to celebrate. When Spain loses even 2% unemployed persons, as they get a job, then we can make a cautious cheer. That moment is nowhere near at present. So why the optimism?

Now consider other elements, consumer spending is falling in France, Italy and a few other places. The economy slowed down in a massive way this quarter, even though in some places unemployment figures look better. The Netherlands now has the lowest unemployment rates compared to other numbers for a long period of time. Yet, the news came with the image of a lovely Dutch girl with impressive cleavage buying a backpack, which does not sway from the blow that the American economy is getting and that affects the Eurozone too.

So here we have the initial part, some EEC nations are now getting a little positivity (most less than 1%), which is better than zero or minus, but it still is a long way from serious movement away from dark times, they are still overhead for the largest extent.

Will you stand by the view that the economy is getting better? I say that this Trans European Crash is still moving along towards the assets of all citizens there. You see, every month I am wrong, it will not be because of the premise, but because some people were allowed to push forward the status quo. In the case of Greece that will be another €7.2bn, with additional funds for bailout three and four. Whomever considers that there will be no bailout four, so you better wizen up fast! Greece has almost 316 billion in debts, it will need another 7.2 to make payments now and then we will see the need for no less than 10 billion more and who knows how much for bailout number 4, which becomes a lot more important now that we see that the Greek government is out of cash. So as the Greeks are not defaulting, Europe gets the added pressure of 17-30 billion before the end of 2016 (likely no later than Q1 2016). So the Greek debt will go beyond 200% of GDP. So when you read these miracle messages of suddenly growing from 0.6% to 2.9% I worry, because someone is again getting creative with the numbers and not with the actual GDP. If the Greek GDP is doing so well, how come we see zero messages on how manufacturing is up by a lot, how unemployment numbers are down, as I see it this is a number ‘fixing’ game where Greece is kept on the edge of the Abyss in virtual representation, whilst in reality Greece took three steps forward over the edge! But those who need the Status Quo, those who invested and want their money, or give their losses to someone else are giving us a skewed picture.

This is what UKIP has been up in arms about. I can tell you now that the picture is a lot more complex than I give it, but I believe that I am right, I believe that several announcers are painting us something that is not there, that is even without the laughingly bizarre article in Forbes by Panos Mourdoukoutas on how ‘Greece’s Net Debt Is 18% of GDP, Not 175%‘, which sounds fine in theory (he uses net debt, not total debt), but why is all that taxation not collected? I see the article nothing more than the article of a Greek having a go at the Germans (oh, how original), yet in this light we also see Reuters stating ‘Ratings agencies say no default if Greece misses ECB, IMF payments‘ (at http://www.reuters.com/article/2015/05/01/us-greece-default-ratings-idUSKBN0NM3N420150501). This is partially true as I reported earlier, because missing a payment is only the track to the Grexit and Default, but not the immediate consequence.

Now we get to the jewel in that article, which links to all other parts “The only potential impact Allen & Overy’s Yannis Manuelides saw from any missed payments was that they could technically give the European Financial Stability Facility (EFSF) the option to demand immediate repayment of one of its big Greek loans. But as the EFSF is government controlled, that seems highly unlikely and it would most likely waive that option“. This is the crux, those in charge will put pressure on the EFSF to get time to settle things, which means the EFSF will not act immediately, because the governments want to make sure that there is no other option to get their money, so everything gets pushed forward. Yet not paying should have an impact on several linked numbers and it could hit Italy and France, this is the true nightmare, Greece is pushing to get both Italy and France on the edge, because that will unlock the big blocks of cash, from which Greece would ‘benefit’, in that regard we could see that Greece gets reduced to a mere slave labour nation, but that is just me stating the obvious.

This is partially the issue I feared coming. One small nation of less than 10 million gets to push the rest around because no one is muzzling the people who are not playing the game according to the rules, as many politicians are not held to account, Tsipras and Varoufakis worked under the premise, if they need not, then neither do we, which is not that ludicrous a thought, but Greece is the only one approaching 200% of GDP, giving pause to the incorrectness of their train of thought.

Station Crash

This is the point where the brilliance of ‘Kling Klang’ studios is shown, the repetitive background of the Trans Europe Express shows the status quo of the finance world, like a monotonous train engine, it is pushing the Greek situation and as we lose the ‘n’ of finance, we get that Greece becomes the debtors fiancé, a shattered relationship (perhaps battered might be the better word) that has no good ending in sight. In all this, I look again towards the Album of Kraftwerk and the brilliance how it relates here. Europe endless gives me the lyrics ‘Life is timeless’, or in this case the European’s time is lifeless. So as we watch the economists admiring themselves in the Hall of Mirrors, we see a shift, one that is NOT BECAUSE of Greece (lets remain fair here) but as they were allowed to continue, we see a shift of people now less and less willing to see Europe continue. When we see stories on how some families in UK sometimes have less than one meal a day, where Spain is in so much hardship the people are bleeding, but now Spain moves forward, in all this Greece sees itself above the law of normalcy and this will soon come to blows. Germany need only to step back and not interfere. So as Varoufakis states that Grexit advocates are ‘anti-European’, we see additional resentment towards Greece, not from the powers, l but from the voting population at large. In that form at present, National Front is still making headway in France, which spells really bad for the Eurozone. Spain becomes a second player, if it goes on like this, slowly making headway, additional fuel against Tsipras is won, yet if it goes the other way, several players will need to pull out if they wish to avoid getting hit by the debts of both Greece and Spain. You see, when one goes, the banks will want to offload the debts as fast as possible, preferably in the last hour before defaulting, leaving who owns it a mess no one will survive, which means they will try to get governments to sign long term agreements for the debts. Will it work? That is uncertain, the fact that most players desire status quo, means that it is not impossible, in the end the debt goes to millions of taxpayers, that might survive, the banks ending up with this bill will topple and go under. This is where we are!

Greece (possibly with Spain) will push France and Italy, they will push whatever is left!

Now we get to the banks and the Greek bank run, this was nicely stated in the Reuters article I mentioned earlier. Here we see “They would be more likely to default on their T-bills (than the ECB) the only problem is that they are then defaulting mostly on their own banks… and in any case a distressed exchange on T-bills would definitely be classed as a default“, this is the fear I had, yet I did not think it would go that fast, because this act leaves the Greek population without any money and this means that the Greek solution could only work outside of the Euro, super inflating a Drachma, paying people pieces of paper that had no real value, a new kind of monopoly where everyone gets cash and no cause for it is needed. Here we see the faltering logic in it, partially the logic on my side too. It can only work if Grexit is forced, which some places do not want (they want their investment) and the inflated Drachma means that retirement funds have no value whatsoever, not even the printed money that is handed for it. A virtual mess of real money and no assets. It is a currency that goes nowhere, a funding from nothing that cannot be, because any product that needs importation will not be affordable. Basically that new Drachma would be even less stable then the old shekel, a worrying thought.

Now we get the UKIP charter in a new light. UKIP will close the borders and will proclaim the European Union to be null and void in the light of the Union Jack, the only Union that England will recognise. After that Germany, Sweden, The Netherlands, Belgium et al will have no alternative left to them, just because Greece would not play ball. The UKIP view is the worrying one, because the electorates that were once an ‘outside chance to win‘ could grow beyond contender, Greece got them there, by playing the rock star game, the British people are now angry, because many of them are getting by on too little whilst team Tsipras/Varoufakis kept playing the ‘we do not care game’ loudly and squandering, it opposes the UK standard of normalcy. They will often spend money, but fess up to it and pay it back, Greece leaves the impression that paying back is not a given, which has been illuminated more than once by Yanis Varoufakis.

Yet, Europe is more than Greece and Greece is less than 5% of that entire mess, which is not voiced that often. Because at GDP, the debt of Greece seems phenomenal, but the debt Italy holds is massive, it is only because Italy does have its products to bring abroad, it has additional tourism and it has almost 60 million people is why Italy does not seem to be in as much danger. But at 130% of GDP, Italy is in trouble, the debt of Greece, if defaulted could push Italy pretty much over the Abyss too. This is the danger Europe faces as Italian Liga Nord could do worse damage to Europe, especially as it does not like the place Greece is pushing them. The Italian debt at 2.6Trillion Euro’s is nothing to be sneered at. Their debt is growing at almost 4000 Euro a second. To deal with the interest, every Italian would have to pay an additional 2,000 Euro a year. This was the danger all along, where Greece is, Italy soon will be and after that France will follow, that is the Trans Europe Crash we will face. This is why Nigel Farage wants to bail out before that bill comes, which is fair enough. If the European governments had changed their irresponsible views 5 years ago, there would be an improved path and Greece would have more time and no one would worry, but that is not the case. The train is approaching station eleven and time is no longer a luxury.

The moment we dread is coming, yet in all honesty, how hard it will hit is not known. We only know that all in Europe will suffer, those who will survive decently are those without debt, the rest will suffer for many years to come. So are you still happy you let things slide or are you ready to pass the Accountability Act? In that act, those who created the mess do not get to push it forward, they either resolve it or become liable. It is in my humble opinion the only way to get governmental budgets properly addressed.

But that might just be my view on this.

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Tagged as Allen & Overy's, Antonis Samaras, Berenberg, Christian Schulz, Conservatives, David Cameron, Drachma, EFSF, Europe, European Financial Stability Facility (EFSF), Eurostat, Florian Schneider, France, German bank Berenberg, Germany, Goldman Sachs, Greece, Greek, Greek government, Hall of Mirrors, IMF, Italy, Kraftwerk, Nigel Farage, Panos Mourdoukoutas, Ralf Hütter, reuters, Shekel, Sotiria Zlatini, Spain, the Guardian, Trans Europe Express, Tsipras, UKIP, United Kingdom, Yanis Varoufakis, Yannis Manuelides

January 29, 2015 · 21:21

Whinging from a desperate left

This is how I felt when both ‘We must stop Angela Merkel’s bullying – or let the forces of austerity win‘ by Owen Jones (at http://www.theguardian.com/commentisfree/2015/jan/28/syriza-merkel-economic-greece-europe) and ‘Bank of England governor attacks eurozone austerity‘ by Larry Elliott (at http://www.theguardian.com/business/2015/jan/28/bank-england-governor-attacks-eurozone-austerity) passed in front of me. It is a unique issue, the political left in league with the banks. It is likely to be a first. The left want the image of cost of living relief, which is a ludicrous fantasy to begin with and that fantasy seems to be all about getting to spend money. We have a similar ‘BS’ joke like this in Australia. That person is called Bill Shorten. You see, as I see it, the banks want ease so that this generation can get a few more millions in commissions before it all collapses.

Let’s take a look at the youthful Mr Oxford (Owen Jones). It starts with the opening premise: ‘Angela Merkel is the most monstrous western European leader of this generation‘. No, she is not! Let’s take a look at the past. Around 2009 Merkel stated that enough is enough. She introduced austerity measures and she sliced back on German spending by a lot. The German people were in pain, they all were. The consequence was that the debt had gone down by a lot, so when harder times came, Germany had shed some of its debt and as such, lower costs on interests and therefor the pain that followed in 2011 and 2012 was suddenly not as painful for the Germans at large. I remember seeing the news. The Dutch did not adhere to such notions, they were all in the mindset like ‘it will get better next year’, at that time the Dutch Finance minister was Wouter Bos. It would not be so good. To be honest, the pain the Dutch felt would not have been that extreme if they had tightened the belt from 2009 onwards as well, but they were all adhering to their ‘good news cycle’, whomever came next had to clean up the mess. It was not just the Dutch, the French, the Italian, the Spanish, as well as the United Kingdom, they all went overboard in spending trillions.

So when I read the deluded word by Owen Jones, it just makes me a little sad. the quote “The Greeks have rebelled against machine men – and women – and they are crying out for others to follow“, that sounds nice as an epitaph for Don Quixote as he marches against the next windmill (possibly a Dutch one), but the Greeks created their own mess. Their inadequacy to deal with corruption, tax collection and a host of other issues got THEMSELVES into the mess they have. Would it not be nice to clearly state that?

Then Own comes with “As Krugman notes, the troika – the IMF, European Central Bank and European commission – promoted “an economic fantasy”, for which the Greeks have paid. They projected that unemployment would peak at 15% in 2012, but it hurtled to over 25% instead“, which is a part I do agree with. There was an economic fantasy, because the austerity measures needed where on lethal levels which cannot be denied, how do the Greeks react? With a series of strikes and vandalism events which only got them into deeper water. A watery grave the Greeks had created for themselves. They now have a debt of well over 325 billion for a population of 11 million, so how wealthy are those 11 million Greeks? If not, where did that money go? The fact that Greek bonds are now at 9.85% should be an indication that Greece is now almost denied existence, it for the most, only has itself to blame, since 2009, how many Greeks actually went to court and to prison for what was done? Of the 2069 Greek accounts in Switzerland (as mentioned in a Greek magazine), who besides the journalist has appeared in court? It seems that making Germany the scapegoat for something the Greeks did themselves is absent of loads of logic.

Then we get another quote that is up for discussion: “Germany ploughed money into countries such as Greece and Spain – that’s the “magic” of deregulated markets – and in doing so “lent more than they could afford”. German banks and their political champions should have known this would end in disaster“, I disagree. Greece was given an option, but was also informed of the intense pressures that this causes. What did they do? Whinge and whine like faulty politicians with the spinal cord of a paperback, not a hardcover amongst them! Instead of going after tax dodgers and those who had made bad calls, to see what they could get back, they went into states of denial, like flaccid applications to a concrete wall, not a scratch was made and when the time was up, they again, whined for more cash, an idea given to them by Charles Dickens in his story Oliver Twist. Then suddenly miraculously, the crisis was over and suddenly they went back to the bond market for more. None of those events are in this article.

Last we get “The future of millions of Europeans – Greek, French, Spanish and British alike – will be bleak indeed. That is why a movement to defend the already ruined nation of Greece is so important. Defeated Germany benefited from debt relief in 1953, and we must demand that for Greece today“, how about the clarity that debt relief came and Greece did nothing, and now, they are whinging and whining (again) for more cash, less debt (through forgiving current debts). However, nobody is making any headway in aligning the justice system and the law to take care of those evading taxation. It will not be anywhere near enough, but it will be a clear signal that Greece is serious about taking a stance for resolving debt and fortifying its annual income. Oh and when the debt is forgiven? Who pays for that money not coming in? The IMF or divide the debt over all the EU nations, who are all beyond their maximum borrowing points? Perhaps option 2? Let the ‘Grexit’ commence and let’s see how the Drachma will leave the Greek people in a state so much worse. At that point the people will dream of those good old austerity times.

Let’s face it, it is not fair to the Greek people, not one bit, but I have seen enough BS in regards to blaming the Germans for what some Greeks did to Greece. If we look at 2013, the quote “The state collected less than half of the revenues it was due to receive last year as it appeared unable to ensure that taxes and fines found their way to its coffers, according to a State Audit Council report submitted in Parliament on Tuesday by its president, Ioannis Karavokyris“, this was an article from November 2013, almost 4 years after the mess they themselves created. (at http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_05/11/2013_526451), so as the Greeks drop the ball over and over again, who do they have to blame but themselves? So as I take my leave from Owen Jones, we look at the second Mr Oxford in this equation. With Owen I am willing to concede that he has his ideological heart in the right place, with Mr Smiley Smiley Canadian Mark Carney, former Governor of the Bank of Canada and the current Governor of the Bank of England, the gloves come off. So let’s introduce Marky Mark to the business end of a two by four in the shape of a keyboard!

It starts quite lovely, immediate of the bat with “Mark Carney says eurozone is caught in a debt trap and should ease hardline budget cuts just days after the Syriza election directly challenged policy“, just under the title. Why should we ease up? If we ease up after an election, the Greeks can forgo debt by having 12 elections over the next three years. It is the cost of doing business and as such, the Greeks themselves have not shown one iota of intent from 2009 onward (the lack of artful tax dodge prosecution could be regarded as evidence piece number one).

The second whopping ‘miss-statement’ might be seen in “Speaking in Dublin, Carney said the eurozone needed to ease its hardline budgetary policies and make rapid progress towards a fiscal union that would transfer resources from rich to poor countries“, when we see parts like ‘transfer resources from rich to poor countries‘, in my view (and in the view of some others), it reads like ‘as big business transfers corporate structures towards economic ailing areas. This was achieved through a subsidy structure that gave way to spreading business opportunity to less fortunate areas’. It also translates in the non-written text part of that statement as less tax liable options for big business, already far beyond normal wealth, move towards areas where labour laws are even less protective, optimising profits for big business.

So when he states as a bank governor the following “Carney made it clear that he thought the failure to complete the process of integration coupled with over-restrictive fiscal policies risked driving the 18-nation single currency area deeper into a debt trap“, which is not untrue, yet the part as a banker, that he does not mention is that he and his buddies profit greatly from spending sprees, if governments suddenly get a hold of their budgets, banks lose out a lot. This can be seen in the simplest way when we consider the Greek bonds. When that market opened up again (which should never have been allowed), the Greeks did not just add to their debt, someone in the banking world ended up with a 65 million euro bonus (in total) for selling these bonds, I am certain that the ‘wealth’ was spread around a little, but some of these financial people just cannot make ends meet on 350K a year, supporting a wife, kids, a Ferrari, a Ducati and two mistresses. You need that bond bonus to feel secure in your way of life as I see it. I wonder if the easing up has anything to do with meetings that places like Loomis Sayles ‘might’ have had with Natixis, perhaps Mr Carney attended a social event in such settings?

I agree with the premise we read in the quote “Since the financial crisis all major advanced economies have been in a debt trap where low growth deepens the burden of debt, prompting the private sector to cut spending further. Persistent economic weakness damages the extent to which economies can recover. Skills and capital atrophy“, I agree with that premise, yet this was a given already in 2011. I foresaw these events in 2012 and I read as bankers all over the place were hosting to ‘bright weather forecasting‘ whilst not taking the cautious steps that should have been taken. We can either state that politicians were too stupid to consider the dangers, or they were happy to leave the mess to those who followed (like Labour left hundreds of billions in debts to the Liberals in Australia), after that we see banks and the media in cycles of ‘bad news management’ slowly lowering expectation and forecasts, whilst the money had already been spend. So, yes Mr Carney, you state a good quote, it is just incredibly incomplete!

So, when we read “Carney has been vocal in his support for the European Central Bank’s decision to start buying government and commercial debt in its own version of the quantitative easing programmes, but said the Frankfurt-based central bank was unable alone to eliminate the threat of a prolonged stagnation“, we see nothing wrong. It is to the smallest degree commendable, only to the smallest degree, because several governments had entered a state of overspending, followed by ‘bad news management’ an intertwined cycle that would undo whatever headway quantitative easing would bring. The need for greed will always win in the end, so those programs are just a fantasy, Greece has some evidence of that part too, as they were part in both sides of that game. Isn’t it nice when the bank plays player one, player two and acts as the bank in the middle. That part truly sucks if you are player three and four in a game of monopoly. If we see Germany as player 3, than who is player 4?

I’ll let you do the math there!

You see, the actual solution would have been to take a stronger position on IP rules and regulations. An approach to ease the path for the small innovator of newly designed products. As several IP sides were all about setting goals towards ‘business’ (read big business), they forgot that when we look at the period between the 50’s and the 70’s, innovation came from the small inventors. Nearly every economy starts stepwise from small players and small innovators. Today, the players are so focussed on the large amounts, they tend to focus on large players like Apple and Microsoft and they forget that these companies, for a larger part live of the premise of the Vulture cycle, you pick the carcass until the hunter shoots a new prey, then they wait until it is feeding time. Small innovators (like Markus Persson with Minecraft) have the actual idea, which a large company then buys for 2 billion plus. As small innovators are given space to proceed and as larger players are denied blocking patents to force amalgamation of the true visionary into their moulding process that is the moment when economies will truly move forward. That is how you get forward momentum!

So when we see the final quote by Mark Carney “Carney said the eurozone’s unemployment rate of 11.5% was more than double that of the UK, but its fiscal deficit – the gap between tax revenues and spending – was only half the size of the UK’s. The eurozone, he said, should be using a “constructive” fiscal policy to support demand and mitigate the “tail risks of stagnation”“, we should wonder who he is catering to. As I saw it, the article was all about policies that are interesting for the boards of directors of the corporations, but the people will only be allowed the conceptual benefit on the tale end. Benefits that might have been a realistic form of support for treasuries all over Europe if they had done something actual to properly set up tax policies. Catering to big business stopped being constructive or lucrative for governments for half a decade now, how much longer will you take until you figure out that big business only caters to their own board of directors?

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Tagged as Angela Merkel, Apple, austerity measures, Australia, Bank of England, Bill shorten, Charles Dickens, debt relief, Don Quixote, Dutch, ekathimerini.com, European Central Bank, European Central Bank and European commission, France, Germany, Governor of the Bank of Canada, Governor of the Bank of England, Greece, IMF, Ioannis Karavokyris, Italia, Krugman, Larry Elliott, Loomis Sayles, Mark Carney, Microsoft, Natixis, Netherlands, Oliver Twist, Owen Jones, Oxford University, Spain, Switzerland, SYRIZA, the Guardian, Wouter Bos

January 9, 2015 · 15:25

The Cat and the Bacon

I have written about the economy on several occasions, I always proclaimed that it was pure insight as I saw it and that I do not have a degree in economy, I am an analyst. Yet today these borders of non-knowledge might get stretched a little further than previously shown. Today is all about the Euro!

I personally never believed it to be a good idea. We saw how all these politicians were proclaiming on how ‘good’ it was for the economy. Was it? You see, it might not matter for the bakery on the corner, the grocer next door or the butcher across the street. It matters to the giants of industry and how it benefits there bottom line, the extra coin for the members of the board, not for the people in the stores, that image tended to be a virtual one, it virtually did not matter at all!

I saw how the change of coin, from the Dutch guilder, things suddenly seemed to be 50% cheaper (2 guilders equalled one euro), but the math is easily made there. What those people experienced that buying a chicken on the market was 6 guilders, it became 3 euro’s, but then what? In a little less than 4 years that chicken from the same dealer ended up being 6 Euro’s. An annual 25% hike in prices. The chicken example is a little extreme and many articles did not raise that quickly. Some will mention the issues of milk in the Netherlands, but that is an issue much more complex and the Euro itself is only a small fragment there.

So, could I be wrong?

That is centre in this debate. I could be wrong, but it is very likely that we are all looking into the wrong direction. It would be nice to blame places like Greece, and they are definitely having an effect, yet the issue is not the EEC, it is more and more pointing towards America. You see, we are all in a bad shape, no one is denying that, yet in American, things have not gotten any better for a long time. Let’s face it, some people are now shooting at the police for fun, or for reasons of aggravation and despair. The people in America are suffering in many ways, but the all holier than DOW keeps on rising in addition, their currency is massively on the up, which under the issues showing, seems a little too good to be true, it an assumption, but is it fair and correct?

That remains to be seen, when we look at the Guardian, we see (at http://www.theguardian.com/business/2015/jan/08/euro-dollar-1999-levels-deflation-oil), the following: “Recent data for the Eurozone has proved weak, with inflation falling and unemployment rising. Italy remains in recession while France has seen consumer and business confidence wane. Only Spain and Germany among the major economies have appeared to gain in strength, though Berlin has failed to kick-start GDP growth and Spain still suffers from an unemployment rate of 25%“, these are facts, they are not in denial, but where are the results of the UK (which were not great)? You see, these facts are true, but there is more to consider (besides Greece dragging the EU down). What about Sweden and the Netherlands? Not the greatest economies compared to the big 4, but still sizeable ones, we can admit that they are all struggling, yet the fact that we see a ‘propagated’ booming economy in America needs to be addressed too.

Who statistically has a job?

When we consider an article in Forbes last August, where we see “My friend and the waitress are victims of a massive but hidden problem called underemployment. Watching falling unemployment numbers being reported at 6.2%, down from nearly 10% four years earlier, is simply misleading“, attached to a headline ‘Tackling The Real Unemployment Rate: 12.6%‘ (at http://www.forbes.com/sites/louisefron/2014/08/20/tackling-the-real-unemployment-rate-12-6/), we get to see the picture that the people are living, Wall Street is ignoring and the current administration of the US is misrepresenting. So is the Euro doing this bad, or is it dragged down by a misrepresenting nation carrying a 17 trillion dollar debt? By the way, did we not see something similar with Tesco and a few hundred millions misrepresented? How did THAT turn out?

When we see this quote in Forbes we see the real danger “741,000 discouraged workers – workers not currently looking for work because they believe no jobs are available for them – are included within the list of marginally attached people. Another 7.5 million were not considered unemployed because they were employed part-time for economic reasons. Those people are also called involuntary part-time workers – working part-time because their hours were cut back or because they were unable to secure a full-time job“. The danger is twofold, how many of the 741,000 are over 50? It seems that companies, especially those with younger, inexperienced executives are afraid to hire people with skills and know how. In regards to the 7.5 million part time workers, does that include those Wal-Mart people, who need to rely on food stamps and all kinds of other support systems? I am not debating their need, more that the owners each walked away with well over a billion in 2013, whilst its staff was on governmental food stamps. How does that ‘boom’ your economy? It almost reads like ‘gangbang’ for your buck whilst the governmental administration bends over, a lack of fairness on more than one front, one could state!

Booking a balance!

You see, the unbalance goes a lot further, the US as a nation can float its currency, this is not a bad thing, normally every nations does it to some extent, to weather a really bad time, so that business and consumer is not hit with weird spikes, it is an issue that has happened for a long time and it will continue to happen, yet the Euro does not have this privilege, these economies are set to what is done in Bruxelles (Brussels), and as such, it is likely impacted by spikes to some extent. However, as their currency is spiking downwards against the Dollar, which seems to be decently overvalued, we get a new danger that the drag will continue, whilst no one seems to be looking and the bubbled version of the US Dollar. So is my non-economic view correct, right or wrong? Yes, there are three options, because, what is correct may still not be right.

Consider, that the Euro nations are not doing so well, which is true after all, that fact does not make the dollar better does it? It is correct that the dollar looks better because the Yen and the Euro looks less good, but the economy in America is not booming, if it were, we would see a lot more people gainfully employed without the need for government support, you see, here we get to the matter on what is correct and what is right. If the US is having a virtual boom, we are judging the US on merits of misrepresentation, which by the way might not be illegal, but should an economy not be held to its cost as well? The US debt is still increasing; the people (a large amount) are not paid to a level of being self-sufficient. We see an economy that had made the thirteen amendment in 1865, there we see “Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction“, in 1867 the US got the Peonage Act of 1867, where Congress abolished “the holding of any person to service or labor under the system known as peonage”, as well as specifically banning “the voluntary or involuntary service or labor of any persons as peons, in liquidation of any debt or obligation, or otherwise”, now this all sounds pretty clear, and having a job is not this, but when a population is forced to work for scraps, whilst still requiring food stamps, it seems that we now have an issue. no one is a slave, but under the conditions where the very rich grow their fortune at well over 30%, whilst those on average grow less than 2%, we should clearly see that the balance of fair play is no longer anywhere in sight. I am not against making profit, it is a capitalistic form that has merit, yet when we see six members of a family, each making a 9 figure number, whilst the 1% of America it employs makes less than the line of poverty, we need to ask serious questions. In addition, as we see a group where they deal in articles that are from questionable sources (at http://www.theguardian.com/global-development/2014/jun/10/supermarket-prawns-thailand-produced-slave-labour), where the quote “A six-month investigation has established that large numbers of men bought and sold like animals and held against their will on fishing boats off Thailand are integral to the production of prawns (commonly called shrimp in the US) sold in leading supermarkets around the world, including the top four global retailers: Walmart, Carrefour, Costco and Tesco“, we are confronted with a governmental issue, where it allows for profit at expense of its own industries in Louisiana, Alabama and Mississippi. We can acknowledge that the oil spills have been detrimental to the health of the industry, but when the big players get their goods overseas, how can any economy recover, especially as these overseas players (as implied by the Guardian), can rely on profits through slave labour. This goes further than just the shrimps, other food items or clothing. It shows a disconnection from the people, you see economies are more than just behemoths, we could see them as parasitic in nature, which sounds wrong, but is actually very correct. The retailer lives off the people, but can only do so if the people can spent. It is a symbiotic relationship; it requires the host to remain alive. Large businesses have forgotten about that, they focus on where the profit is, not on the required equilibrium, so as places like India grew form a third world market into a super economy.

Cycles of equilibrium

The people outsourcing, seem to forget that its own population is every bit as important, so as that group falter, so will businesses slowly but surely. As we see that cycle progress, is it not strange that the US Economy remains booming? A nation with many people unemployed; even more people in a state of poverty; 15% in poverty, this gets us a little more than one in seven in poverty, meaning that big business is now relying on revenue based on the remaining 5 out of 7. It looks nice in a statistical model, but as the overall quality of life goes down, that group of 5 will dwindle down too, when that happens, the economy will falter in new unprecedented ways, leaving the only option that a few people walk away with all the money they can carry to their own island and the rest is left without anything. This can be read as misrepresentation as well, but is it far-fetched? that part is not a given until we see an actual economy that truly improves, which means that the poverty line descents, people will start having a liveable income, that will give rise to shops needed and more jobs created and all that opts for the US national debt to go down by a lot, something that this administration has not achieved, more important, it might take 2-3 administrations for that debt to be addressed in any way, shape or form, which only fuels the wealth of banks and financial players. If it is addressed too quickly, the poverty line could soar far further then 21%, giving an instant crises in the US that goes beyond the imaginations of many and will be one nightmare Wall street did not foresee to this extent. Yet how would that affect the Euro? Well in two ways, as the US people will become more and more desperate for jobs, suddenly the economy looks even better on our grass, but it is an ‘economy’ for the wealthy living, the rest will see a further drop in living conditions (an assumption on my side)

So as big business ties the cat to the bacon (meaning: opportunity knocks), we must wonder how these elements call for a booming economy as an economy is reliant on people spending money, buying items and none remain to do just that.

You see, there seems to be a fluctuation on what an economy is (seriously!).

The first one we see is: “the state of a country or region in terms of the production and consumption of goods and services and the supply of money“, which is what we all believe it to be, yet the second meaning “careful management of available resources“, which we can take as “offering good value for money” and “a financial saving” last there is “the cheapest class of air or rail travel“. Weird or not, they all apply. I got them straight from the Google dictionary.

Now when we mash them we get: “the National state in terms of the production, the cheapest way possible, whilst advocating good value for money, whilst ensuring the highest efficiency in regards to managing our available resources, whilst optimising consumption of goods and services, ensuring the best supply of money through contribution“. Does that not sound very familiar? You see, it seems like a booming economy, if you are getting the money. The consumer is left with the option, whilst not guaranteeing a pool where such sufficient income can be maintained, almost a death pool of discontinued certainty.

So, how did we move away from the Euro? Well, I actually did not, you see, these elements have been a factor with American companies all over Europe, now consider how much taxation they did not have to make due to tax havens and specific invoicing? You see, a government is depending on its coffers to be filled so that there is a growth and continuation of an economy, whilst these corporations are now stating that this inherent side of the symbiotic relationship was not theirs to care for. Now we see and a loss of balance as well as a first glance on how dislodging an economy can have long lasting effects. As the Euro has less ‘floatation’ options and as some unbalanced it even further, we now see no options on the Euro side, whilst the Dollar has legal options to float its currency, unbalancing the amount further, the upped representation does the rest!

Blame Game

Now, it is important to see that I am NOT blaming the dollar for the Euro, yet it must be said that those behind the Dollar (businesses) have presented themselves overly good, so there is a secondary effect, whilst we see more and more often a changing scale of what is to be reported on. Let us be clear, several EEC nations have done this in the past, but the balance is now changing further and further, giving no one a clear view of what is real, we see presentations that are all a little out of whack, so as Europe starts its plan of credit easing, we will see the numbers jump, yet in what direction cannot be predicted (not by me at least), because, if investors walk away ‘en mass’, no credit easing will do any trick, if you doubt that then look at India, is it not weird that NTT DoCoMo / TaTa, the big winner of 2013/2014 suddenly wanted to dump its one billion share? Is it not strange that in this ‘booming’ economy, all are looking on the inside? Is a booming economy not about growth? So as we ‘see’ a growing economy, is that not (usually) a sign of growth? So why are the mobile providers T-Mobile, AT&T, Sprint and Verizon all steering clear of the Indian market that is seemingly up for grabs?

So is the US economy booming, or is it going boom-boom?

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Tagged as 13th amendment, Alabama, America, AT&T, booming economy, Carrefour, Costco, Dollar, Dutch guilder, economy, EEC, Euro, Forbes, Louisiana, Mississippi, Netherlands, NTT DoCoMo, Peonage Act of 1867, Spain, Sprint, Sweden, T-Mobile, TATA, Tesco, the Guardian, US Congress, US Dollar, Verizon, Wal-Mart, Wall Street, Walmart

December 30, 2014 · 14:42

Fur ball?

OK, I thought I was done for the year, you know, the last article when I threw a little lob ball in a less serious approach to reporting events. However, that part threw me a little fur ball, almost like coughing up the Cheshire cat.

It all started with the Jerusalem Post today, at least that is when I noticed the message. The title states: ‘Israel expects world community to oppose Palestinian efforts at UN, Netanyahu says‘ (at http://www.jpost.com/Arab-Israeli-Conflict/Israel-expects-world-community-to-oppose-Palestinian-efforts-at-UN-Netanyahu-says-386058), true, there are issues with the entire UN debacle to some extent; my emphasis is regarding the use of ‘some’. You see, as much as I oppose the entire anti-Semitic approach towards Israel. Having a strong anti-Palestinian view seems equally wrong; however, Palestine has created this issue whilst condoning whatever Hamas did to the largest extent, which is completely unacceptable either, none of those actions make sense. The quote “Israel will oppose conditions that will endanger our future” is very much central into this. Prime Minister Benjamin Netanyahu is very correct in that statement. Hamas has always and remains ‘dedicated’ to wiping out Israel, which beckon the thought why the EEC courts would rule against giving Hamas the ‘terrorist’ label. We could argue and speculate on how this is even acceptable. Did this grow out of fear on the Islamic state presence in both Gaza and Sinai? The fact that they are growing in Libya and even in other parts of North Africa is a nightmare scenario coming true (at http://www.washingtontimes.com/news/2014/nov/27/islamic-state-opening-front-in-north-africa/). There have been unconfirmed reports of Islamic State in Algeria, but if so, if they could start getting any level of hold in Morocco, then they are just a footstep away from Spain. That should scare the EEC plenty, they have no funds left to manage any event, and giving up Israel means that they get a little time to ‘clean up’ their border issues. This would be a step that is delusional in many ways. You see, Israel remains essential to balance in the Middle East. The Economic Judges took little notice of that part of the equation; just on the formality of what a terrorist is, (apparently blowing up Sbarro filled with civilians is not a terrorist act). By the way, did anyone notice how there dos not seem to be any paper explaining the formality in that legality? Just the fact that is was ‘a formality’.

The second quote is the one that seems to be a little debatable: “Netanyahu said that Israel and western civilization were under attack from Iran and Islamic radicals, and that this attack also included Palestinian efforts to impose a solution that would endanger Israel’s security and place its future in danger“, one part should be (as I see it): “under attack from extreme supporters within the Iranian government and Islamic radicals“, which would be more correct. I do not believe all Iranian (at present) are like that, yet open support from Iran towards Hamas has been seen, these military elements seem to get some political protection, which proves my point (to some extent), yet I am not certain (or there is at least a decent level of doubt) that it does not blanket all political Iran as I see it. The fact that President Obama announced the possibility of an American Embassy in Tehran is not a bad thing, but these developments should be closely watched, because there is an issue. It is not the fact that this meeting was with Indiana Governor Mike Pence. The act that he is a Republican and that this meeting was absent of Democratic heavy weights might be fuel for speculation were the current Democratic administration stands. Especially as the White house was unwilling to confirm or deny it stance towards Israel. This has all the makings of a political issue that should be a moral one. Israel remains under siege from rockets on a nearly daily basis, it seems that people forget how the US reacted when there was some demolition going on in New York close to the corner of West Street and Liberty street. Let us not forget that this was ONE event. Israel has remained under attack for decades. Israel now has two generations under attack from rocket fire. These events cannot be compared, but perhaps the Americans can remember their anger on September 12^th, which is the feeling Israel has had for a long time. It wants to survive plain and simple. It’s neighbour will continue to attack Israel, whilst Israel wants to survive, yet, in fairness, I must look towards the other side too. I believe there can be a Palestine WITHOUT Hamas. That is an option, but Hamas does not want it, it wants to lead and to do that, it must remove Israel. It is not a puzzle, it is a simple equation, one denies the existence of the other solution, so I must side with Israel and as such, as long as there is Hamas, there can be no Palestine. A situation now worsened with the existence of Islamic state in that area.

There is another view that I must bring forth. I am not sure if I can agree with it as there are a few parts that touch on items I never looked at (it is not a small document at http://www.academia.edu/5145129/Gunning_-_The_Conflict_and_the_Question_of_Engaging_with_Hamas_in_EUISS_CP124_European_Involvement_in_the_Arab-Israeli_Conflict), but it has views that are not invalid. As such, I call to attention to the following part “They could, for example, spell out the rewards that would be forthcoming for a new unity government that would share responsibility for delivering basic services and the rule of law in both the West Bank and Gaza“, this is found on page 41. I am not stating that this is happening, but when we consider the events, it is not that far a stretch to see that this might be part of a path that the EEC is currently treading. If so, they will soon see the other side of a terrorist organisation. It remains nice and talkative as long as steps in their direction are made; when that stops when THEY need to show progress there will be delays, miss-communication and other events. Then those big business judges will see innuendo towards ‘give us the rest or else‘, then what? When THEIR ego is in play, what will they decide then? Let us not forget that they are gambling with the existence of the state of Israel. When they are told, there are 10 solutions to this and ‘no’ is not an option, whilst they contemplate what the other 8 options are, when they suddenly realise it was a binary question with a ‘no’ and a ‘yes’, the other 8 solutions never existed in the first place, then what? They might not have pulled the trigger, but they are skating towards the end of Israel for the simple comfort of mind that never existed. You see, terrorists are extremists, they only cater to the view of ‘self’, with no regard of any other view. Israel is trying to survive, plain and simple, a war that continued from 1945 onwards.

Yet, there was also a spark of visibility (in other areas), that gave me pause to consider other dimensions. Not in regarding to what goes boom, but in another direction. In the same way that we look at the EEC decision of Hamas, there is a Jewish issue that the Jerusalem post shows, which gives us another part of this cloak. It is seen at http://www.jpost.com/Israel-Elections/Rabbi-Meir-Mazuz-responds-to-Rabbi-Cohens-attack-on-Yishai-385989. As we see a needed separation of politics and Law, we see an equal need to separate state from church (as many have always seen it in the US and other places). The quotes were “Rabbi Shalom Cohen, he should be well, is a great Torah scholar, a righteous man and a great intellectual, but he does not come down to the people and, therefore, he does not understand the common people”, “He has never held public office and served most of his career as a rabbi in yeshiva and a yeshiva dean, not as a halachic arbiter dealing with the questions of Jewish law that are brought to senior rabbis for a ruling” and “Mazuz seemingly referenced one of Cohen’s recent outbursts in which he said during a prayer service at the Western Wall for the welfare of IDF soldiers during Operation Protective Edge that Israel did not need an army because “It is God almighty who fights for Israel.”“. Now I am not debating the issues as they are, I feel not qualified to do so, but there are issues as they have always been in almost any religion. I would not elect a Rabbi to political office, for the same reasons I would not vote for the election of a Catholic in that same category, each having a slight radical, absolute view. A woman’s ‘right to choose’ abortion would end pretty much immediately, also, there would be a diminished view for defence and an increase or humanitarian needs and diplomacy. Yet, Diplomacy without military power could be regarded as either pointless, or useless. Diplomacy requires a stick to fight with when ‘the’ word is ignored. It is counterproductive when we know that the stick remains ignored and the diplomatic view is ignored completely when we know that there is no stick in the first place. This is the damage that Julian Assange created, which too many ignored. The anti-American league had a field day when they saw WHERE the US had made commitments, knowing where the stick was, toppled many American diplomatic endeavour, whilst they remained in the dark where the other sticks were. That view is only emphasised when we see the Jewish elections. How can the people be served without their military need for defence? Is that not counter to the Torah? If we know that the IDF abides by what is seen as “The Torah establishes the boundaries of what is permitted and forbidden in war for both individual and for society“, which gives us how Hamas waged war, yet the ‘legalised’ view of the EEC disregarded that overall view and reacted to, what I regard to be an economic view of judgement, which gives us the escalating issues. The added incentive here is that no one has actually give any visibility on how the ruling was made, on what legal premise is was founded, is this not strange too?

So, as we consider on who makes rulings on how judiciary choices are made, we must consider that the players have their own agenda. Whether we should consider how the law is seen (by some) and when we see how economies ad terrorists make decisions, in a morally biased way how, is any of it regarded as legal? Is there a boundary between those who fell from a rocket and those who fell through economic ‘treason’? How does that reflect differently on the victim? There is a famous quote we see Lee Marvin make in the movie ‘The Big red one’ (one of my five all-time war movies). There he states “We don’t murder; we kill“, I am certain that it did not matter to the one whose live we end, only to our own morality to pull the trigger. A morality a terrorist or a stockbroker for that matter does not seem to have.

You see, the sniper kills (or murders) for the protection of others, the terrorist and stockbroker acts for the wealth (or survival) of self at the expense of (all) others, elements of the same sides of two different coins.

So as the fur ball coughs up a Cheshire Cat, we must worry for the future, we all seem to disregard certain values and adhere to choices of our own survival, even if that requires us to realign our morality, just the slightest. As Saruman the White becomes Saruman of many colours, we see the fading of white, the finding of what was actually right and we lose ourselves into a world where we remove the fences that were there to protect us all. What happens next? I do not know, or even pretend to know, but I do worry, because 2015 is likely to be a year of turmoil, a year where we had to focus on a better economy, a side that might be pushed aside for whatever escalation comes next.

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October 3, 2014 · 11:38

Selling Israel

The papers are having another go at selling another version of an idea that has been said so often that I worry that those going towards it are dim or desperate, I honestly cannot tell which of the two they are. Now, before we continue let me frank. I have nothing against Iranians, several were in University with me, I met some in Sweden and in Europe, but these Iranians are the ones who left, they wanted a happy future, a future Iran could not offer. There is the issue, the Iran we seem to see are those who do not want to be in Iran. So why are those able to change, are doing so whilst flushing the futures of many whilst they enjoy the age of fornication. This is at the premise when we look at the Guardian Article ‘Iran nuclear talks: why Tehran must be brought in from the cold’ (at http://www.theguardian.com/commentisfree/2014/oct/02/nuclear-talks-why-tehran-must-come-in-from-cold). Here lies the heart of the problem in several ways. You see, it was all easy and clear in the time that Ahmadinejad was in power, we could smell crazy 25000 miles away. Now we have an issue we haven’t had before, you see, now that President Rouhani is in office things are changing. President Rouhani is by all standards, as far as I have been able to tell a decent person, he is a moderate, what would be seen as a good Muslim in pretty much any sense of the word and as I see it devoted to his country and his family, a man any man or corporation would happily do business with. If there is one flaw, then it is the fact that he went to the Glasgow Caledonian University, so he might not cheer for Australian cricket, but we can let that slide.

My issue is not with President Rouhani, it is with the person who follows. I know it, many know it and for a massive amount, the intelligence branch at large knows it, so why do we see more and more sounds on a nuclear deal? I will tell you why, it is because the parties willing to do business will not ever be in danger. No matter what happens when the deal is made, it is extremely unlikely that there will be any danger to the US or the Commonwealth. So, those involved parties are all willing to talk, mainly because of the massive amounts of money it could bring. Add to that the oil and gas reserves that Iran has and we have the makings of a greed driven agreement.

There is just one problem, if this happens, these people will directly endanger the status of Israel. I hope that they remember that Israel is an ally?

So why is this issue? What is the danger?

There are many. Consider the moment that Iran has nuclear capabilities. How long until a nuke or a dirty bomb makes it into Israel? Less than two weeks ago we saw high ranking Iranian officers acknowledge that they are giving missile technology to Hamas, do you think that Hamas will not fire such a rocket? How dim do we need to be? Hamas and Iran are both filled with more than a share of extremists. Even if the bomb does not hit Tel Aviv, there are half a dozen places where the state of Israel will collapse if one went off. Even more dangerous is the issue when it goes off in the Mediterranean, when the rads get into the water there, tourism for Greece and Spain will collapse overnight, it is also likely that irreparable damage will be given to both Italy and France at that point. How will you live then without a Euro coin that is still around?

So, is there any doubt? Ahmadinejad: “World forces must annihilate Israel” (Aug 2nd 21012) as well as “Anybody who recognizes Israel will burn in the fire of the Islamic nation’s fury“. So our issue is not with President Rouhani, it is with whoever follows. Because when that person is not a moderate, one who wants to ‘score’ a name for himself in the eyes of all Muslim nations not willing to recognise the state of Israel.

The article does extent on several other sides. One of them is “many Iranians agree that, for the moment, the president’s priorities should be economic and diplomatic“, this is exactly what President Rouhani seems to be doing, trying to increase the living standard for Iranians. He seems to be successful because of the man he is, many are willing to talk to him and take economic steps. Who would not want to do business with the prospective customer who is moderate, respected and likely relaxed. As such certain dangers are ignored, you see, Iran has rules and regulations, they are clear and precise, so any Iranian Muslim can become president, however that also includes extreme elements like Mahmoud Ahmadinejad, because the consequences of a ‘democratic’ system of election is that anyone can raise his voice, where the issues start. When Iran becomes a nuclear nation, we need to take a look at… but then it will be too late.

There is more than just a few articles from the average Journalist. When we look at Alon Paz, an officer of the IDF, we see that Lt. Col. Alon Paz, Israel Defence Forces, is a Visiting Military Fellow at The Washington Institute. If we take a look at his article in the Business Insider (at http://www.businessinsider.com/israeli-colonel-we-must-examine-hamas-strategy-2014-7?IR=T) we see that Iran is having more than just one influence and these actions are taken with President Rouhani in office. The question is how Iran moves forward, however, we need to keep it as an essential first step that it does so not as a nuclear enabled power, because that will change our futures in the most negative way imaginable.

The fact that Hamas has received missile technology from Iran is perhaps one of the strongest pieces of evidence against Iran becoming Nuclear, not because of those in charge, but because of select groups of officers who are propagating the need for Israel to be removed, once one of them gets into office, the lifespan of Israel will be measurable in mere hours, so as Israel starts glowing in the dark, what will America say then? “I’ll take that goat off your hands for 2 zuzim”, where will it leave the rest?

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June 21, 2014 · 20:48

Legally and Criminally Insane?

There is an issue that had been on my mind for a long time. First of all, I do not have a car. I had a motorcycle for a while, but not at present. I never cared for cars that much. When you live in the big city, a car tends to be an expensive asset and it rarely gives you additional time. I learned that if one manages their time correctly you get heaps done without a car. It does not always work that way, I can admit that and for almost half a century, I have only desperately needed a car around 10 times. So, for me, a car is really not that needed.

You might wonder where this is going!

I just read an article, basically the second driver in a series of thoughts (at http://news.sky.com/story/1286644/brakes-slammed-on-over-zealous-spy-cars). The first one is a number of articles all pointing back to speed cameras (at http://www.telegraph.co.uk/motoring/10613388/Motorway-speed-cameras-to-be-rolled-out-to-stop-those-driving-faster-than-70mph.html) and a third topic in this matter can be found at http://www.mindfulmoney.co.uk/trending-news/parking-fines-by-councils-reach-nearly-255-million-in-2013-with-tables-of-the-top-finers-by-local-authority/.

So, why these issues? We have traffic laws (UK, Australia and heaps of other nations). They are not like the three rules I got explained for driving a car in Egypt (in 1982), where it seemed that:

1. If you did not honk your horn, you are at fault.
2. The heaviest car has right of way.
3. A non-Egyptian is always at fault.

They seem simple and pretty much fit the bill.

In most Commonwealth countries we have set rules on speeding and parking. So, I do not get the problem when people start bitching over speeding tickets. Was there a speed limit? There always is and there is always a reason why it did not apply to that person. I reckon 1 out of 250 will have the actual honest defence that they missed the speed limit sign, which gives us 249 people who should keep quiet and just pay up, or should they?

Now, I will admit that I am slightly on the fence towards the topic with the title “Brakes Slammed On ‘Over-Zealous Spy Cars’“. Is that really a wrong approach?

Even though the heart of the matter quoted “These measures will deliver a fairer deal for motorists, ensuring that parking enforcement is proportionate, that school children are protected and buses can move freely, and that key routes are kept clear“, which is fair enough. My issue is that these people parked illegally, so why is that an issue?

The quote “CCTV spy cars can be seen lurking on every street raking in cash for greedy councils and breaking the rules that clearly state that fines should not be used to generate profit for town halls” remains funny as most town halls will never ever make profit, even if we fine roughly 87.2254% of the London motorists, London would still come up short by a sizeable amount.

It is in the area of the parking fines article we see this quote “The capital is extremely congested so we’d expect to see a higher number of restrictions in place and penalties being issued. However, there is a fine line between fair and opportunistic that councils shouldn’t be tempted to cross.” Here I wonder how to react. You see, if the council revokes a driver’s licence after 3-4 fines for no less than one year, it seems to me that the congestion problem will solve itself overnight. I agree that these transgressions are not in the league of Manslaughter or Grievous bodily harm, but laws are laws and are traffic laws any less? (Well, less than murder, yes!) There will always be excuses and some will remain valid.
‘L or P plates correctly displayed at start of journey‘, which in all honesty could happen. There is ‘on medical grounds‘, where the driver was helping a victim into a hospital. There will always be a grey area that we in all honesty must deal with. These are the parking fines and there are a few more valid reasons, but some are just out there. I felt a lot less lenient when it comes to speeding. You see, there is always that joker who thinks he is in control and when speeding goes wrong, he refuses to die for the sake of it, but will have killed someone else. When we read that: “X (name removed) was jailed for eight months for causing death by careless driving“, I wonder why that person is not spending life in jail for murder. the quote “Believing they were walking ‘deliberately slowly’, she engaged the clutch and revved the engine of her Honda Civic to scare them off the road while her car was still moving at around the 30mph speed limit” gives additional feelings of anger. These pedestrians were at a pedestrian crossing? 8 months jail and a two year ban is all she had to do, which in my book seems just wrong.

It is the quote “We are opposed to speed cameras in general. The evidence of their success in promoting safety is not good and in reality what is happening now is that the police are using speed cameras to fund their other activities through speed awareness courses.” by Roger Lawson, a spokesman for the Alliance of British Drivers (ABD) that gives additional concern. Perhaps these measures do not go far enough?

It is currently stated that if you are caught speeding then you will be handed an absolute minimum punishment of three penalty points and a fine of £100. How about making that four penalty points and a fine of £200? Also during special times, like Easter, Christmas and so on, the demerits double, making the driver extra careful. Next we see that ‘if you accrue 12 points on your licence within a three-year period‘, should then in honesty become ‘if you accrue 24 points on your licence within a two-year period‘ the driving ban should be no less than 24 months, no matter how essential your driving license is. If someone states that this is too draconian, then I personally agree as well, but many acts do not change the mind of the driver now, so why not give them something to fear. It seems that public transportation frightens them a lot.

What do we get from this?

That is indeed the question. It seems that a total disregard for parking and speeding rules is getting out of hand, and whilst it seems unfair to some, this is also a possible way to stop congestion. It also stops a little pollution, so we do get a double whammy on this front.

This all gets me to Law and Morality by John Gardner (at http://users.ox.ac.uk/~lawf0081/pdfs/lawmoralityedited.pdf). It should seem clear that my approach is ‘aim to serve the common good (Finnis 1980: 276)‘ and ‘aim to justify coercion (Dworkin 1986: 93)‘. There is no denial that this is about coercing the driver to abide by the rules. We should at that point also consider how unjust the laws of traffic are (if that is the raised issue). But is it?

How often could you not park because someone had taken the spot that was rightfully yours? How often have you or someone you directly known to be in almost direct danger because of someone speeding? When a population above a certain level states yes to both (as it currently seemed to be the case), should these laws not change to something more draconian?

Is it not so, that in my imaginary change, we are changing the premise that we all have a right to drive a car, into the premise that driving a car is becoming a privilege for those abiding by the set rules? Is this not deprivation of freedom? We are to some extent already imposing those rules to pilots, considering the lack of accidents there, should we not take the same approach with car drivers? Should we not pass a certain parameter to be considered a driver? We demand skills to many environments that are a lot less hazardous, so why not car drivers? You see, as I see it, the car industry had forever been an open field as it was so lucrative to sell to so many people. Now, with the saturation we see, cars are almost too available and gas prices go through the roof. What if it becomes a privilege? What if the car driving population goes down by 20%? Cars might not become cheaper, but gas certainly will as there is a 20% less need. Public transportation will suddenly get a massive boost and the chance that all this reflects on higher safety standards and less need for emergency aid is also a good thing. We will always need emergency services, but consider that they will have on the emergency services. Here is where I got surprised. When we consider the numbers (at http://www.hscic.gov.uk/catalogue/PUB13040/acci-emer-focu-on-2013-rep-V2.pdf), we see that in the UK the response for ‘Road traffic accidents accounted for 1.4 per cent of type 1 department attendances in 2012/13‘. That was a number I did not expect to see, so am I looking in the wrong direction? When we look at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/255125/road-accidents-and-safety-quarterly-estimates-q2-2013.pdf, we see a rolling statistic of 1785 killed and 23,530 regarded as killed or seriously injured, which makes the Accident and Emergency (A&E) data in England a slight question. Especially as we regard page 17 of that PDF and the spread of the traffic cases on page 22. Well, No! The numbers make perfect sense; it just shows that the 23,000 are well spread over the timeline; it is just that these 23,000 are in the end only 1.4%. Yes, in case you wonder, I did notice they are not all from the same frame, but we see only a few percent change over these time frames, so that overall the picture is still usable for the most, just that the relief for Accident & Emergency would be minimal (alas). I had hoped that the traffic changes would lessen their work a lot more.

So, am I just trying to add morality to a traffic case? Gardner explains that at times morality needs law, just as law is in need of morality at times. So we are still with the question, is adding draconian measures to traffic laws morally considerable, or will the act result in a lack of morality for the law? That issue is brought to light when Gardner gets to item 4. “Does law have an inner morality?” There we have a nice consideration. Is morality not a setting of norms, hence in reflection is it not a form of discrimination? I am doing that by discriminating against the transgressors, but am I doing this in an unbalanced way? If we accept that morality is seen as a system of values and principles of conduct, and the bulk of people break speed limits, is the morality of speeding not one that should change? If almost all break the speed limit, is the law not unjust to being with and as such is this law, draconian or not a transgression of accepted morality and therefor a law that should not exist?

The facts now fit the statement that Roger Lawson gave us, is this about funding, or about safety? That is not easily answered and without knowing the true and complete course of the 1785 killed. How many got killed through speeding? If we accept that the UK has roughly 34.8 million cars in use, should 0.00525% decide the consequence of the rest? When we look at the deaths, that is what we see; we get 0.0676% if we include the wounded. So, when looking at this, no matter how we twist or turn the data, well over 99% suffers because of a few. There is no question that none of this changes for the victims of these events, but it shines a harsh light on certain aspects of traffic safety and the approach it has. Should the laws change however? There is growing evidence at this point that my Draconian approach is just not the way to go, it shows an increasing tendency to be unjust. We can all agree that unjust laws should not be followed. But in the second degree, are the current laws too harsh?

Here we have several other factors to consider. If congestion is the cause of many evil, then my draconian approach survives the test as it solves part of the problem, yet will it solve the situation? There is no real way to tell. We should however question whether we want to take away the car as a basic freedom, because that is what a car embodies and revoking freedoms is as we can all agree highly immoral.

It seems like we took an opposition approach and through this we learned that people like Eric Pickles and Transport Secretary Patrick McLoughlin have a clear case. The same could be said for Roger Lawson, which takes us to the question whether the UK should consider losing the speed limits all together. Would you believe that someone made that case? Norfolk Police Crime Commissioner Stephen Bett did this and makes a good argument for it, which gives wonder on what to do next? He stated “If we are going to do anything about speed and villages we ought to take down all the signs and say all villages are 30mph [48km/h] and you drive on roads like they do in Germany and Italy, as road conditions say”. So if this works in Germany and Italy, why should the UK not go that same way? It cannot just be the weather as the weather in Germany can be even more treacherous as it is in the UK. Is it not also the case that the simpler any traffic issue is, the less confusion we are likely to face? The Egyptian example at the beginning is an extreme one, but does show the effectiveness of simplicity (except for rule three which can be scrapped in Common Law on grounds of discrimination).

Perhaps some changes the UK could get by learning from its neighbours, who knows, perhaps after this the French, Dutch and others will follow the Italians and we might get a reasonable equal traffic system (one can only hope). The end of the article comes down on Stephen Bett stating “UK motoring organisations have dismissed Bett’s comments, with the Guild of Experienced Motorists describing them as ‘just nonsense’“. But is that so? The numbers seem to be in his favour, the evidence of simplicity as generic evidence has been proven again and again, so is it all nonsense or is Stephen Bett onto something? Even though he stepped aside as PCC while an investigation is carried out into his expenses (since yesterday), the points he made should be seriously investigated, especially if proof can be given that simplicity drives down the number of accidents and transgressions, which is a win/win for all people.

So as I see it, the act to add Draconian laws seems almost criminally insane, which is actually what is happening in Spain, but we will get to that in due time when we see the results of Spain implementing such harsh rules.

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April 15, 2014 · 11:44

Facts, Fiction or Fantasy

It is the elementary consideration of the three F’s, when we look at the information in regards to the Ukraine. It is not whether we give value or credibility of the news we see coming from Sky News, the Dutch NOS, BBC, CNN or even Fox News. There is a side that remains largely unspoken by many of them.

We see the news on how it is written on how these poor, poor Ukrainians are getting pummelled back into the anti-freedom group called ‘the Russian Federation’. Is that actually a truth?

Yes, we all notice on how well organised and well-armed these pro-Russian antagonists are, but are we seeing all the information correctly? Consider that not a few or a dozen people are in favour of these so called referendums, no; the people are out and about in hundreds and thousands. Many are singing their ‘old’ Russian songs and anthems. This is at the heart of the missing information. Consider that we see a lot more US involvement, whilst Kiev is now asking for the ‘Blue Helmets’ (UNIFIL) intervention. These people are about to get more support in 2 weeks, then the entire Syrian nation got in three years. I hope you remember that little escapade. It is still going on and the amount of casualties remain rising in Syria.

So, why are we all up in arms about Ukraine? Is it because some in Kiev want the European values and we are so upset about those who do not want to share ‘our’ way of life? Consider that the news has all been about implying that these acts are all orchestrated by the Kremlin and whilst it sounds really fun to hear about some politician who is about to get his assets frozen, nothing real can be done. By the way, can anyone tell me when the American Politicians or Wall street big bosses got their assets frozen?

The Ukrainian mess is blowing out of proportions in two ways. The first was the start of the Crimea and in specific the way the west and others responded to the events. I will always consider the fact that Russia did have some involvement here to some extent. The reason is that not having their fingers on the pulse whilst there is a massive naval base there is just not an option. They might not have intervened, or they remain silent on actions, but they knew what was going on. It was in their interest to pretend to be the non-observant here. Yet, that story does not reflect on the other parts of the Ukraine. A simple look at the map can tell us that. The Crimea was a military power point; the rest of the Ukraine is not. It is so simple for Russia to stand at a distance as see this all go up in flames and then offer ‘humanitarian’ aid.

The part that western news is ignoring is the shouting of the people that they have had enough of Kiev corruption. In their mind this will only lead to even worse times. Can we even blame them? Look at what the IMF has wrought (not through their actions through), Greece, Italy, Ireland, Spain and Cyprus. Massive debts, then IMF/EU financial support and after that austerity and continues after it started to choke a population. Government administrations get re-elected, no one goes to jail and some end up with a massive amount of money and favours. Is it such a leap of faith that Ukraine, a nation where corruption is such an issue, a place where now its population is just too scared to see what happens next? Consider the news in the last week, where we read that Christine Lagarde stated that the IMF was no longer forcing structural changes (http://www.sbs.com.au/news/article/2014/04/13/imf-no-longer-forces-structural-change). Was that just a small illumination of change as fear is gripping certain population groups? Consider the statement that was given last week that ‘the IMF was a victim of US politics‘, it is enough to scare many people. The statements of the IMF, which were also stated by Australian Treasurer Joe Hockey, that the US seems to be playing their own political games on regards to the IMF. None of these issues were raised, even though it is stated in several sources that the Ukraine is about to receive 9 billion in aid from the IMF. Now, I am not objecting in regards to the aid, yet, whilst it is known by all the players above a certain levels (at least 4 levels below Lagarde, Obama and Putin), that the Ukraine has a history and environment of corruption. None of that is properly addressed, so whilst 9 billion will go to the Ukraine, how much will end up out of the hands of the corrupt? Misreading gas meters, government invoices and the list goes on, how much of those will get paid by the 9 billion? Still wondering why the Ukrainian people are so anxious?

None of these matters are looked at (with proper levels of investigation) by the press, which makes for some of these newscasts a negotiable level of ‘pro-western’ advertisements, making the situation worse.

What the press is unwilling to illuminate, is that at the centre of these troubles are the pro-western politicians. They had no issue disposing of its former president, yet when they themselves are rejected by the Crimea and as it seems by the people at large, everyone shouts foul!

That part is an issue, no matter how many journalists ignore it. It is of course also a nice point of light as well; my income might drastically improve if the cold war is back. There is of course the badge of benefits we see with new movies (like a new impossible mission going up against their old adversary), the video games and in my case more data analyses. All those international locations that would need Palantir Government installed, trained and consulted upon.

Is this the reality? I do not know, the pressure between east and west is growing, so it remains a consideration. Consider however the events in Syria and that red line that was drawn (by the US), nothing happened. Is it because US intervention might get some of their oil benefits revoked? Is Syria not an interesting nation? (Which seems odd, as the pressures there would influence their long-time ally Israel.) So what is the press not investigating and what are we not getting told in this instance?

Consider that when you watch the news tonight and listen to what they say exactly, because you will hear suppositions and carefully phrased implied events, but where were the facts and more important, why are we not getting all the facts? That last one is important, as it turns a fact driven newscast into a work of fiction or even fantasy, which is getting the Ukrainians so angry and bothered.

In the end I still ask the question that is at the centre of this all. Why did the EEC not let the Ukraine be? This is not a statements against dealing with the Ukraine as a business partner, but in the light where the economies are down to such a degree, when the EEC is still dealing with the new partners and the overall debt levels are far exceeding acceptable levels in many of the EEC nations, growing is not a solution, it is a sure path to implosion, which will leave most of the EEC in a destitute state. That part is also seen as the two big national influencers, namely the French ‘Front Nationale’ and the British UKIP. When they do get the referendum to fall in their favour, the EEC will be in a mess that they will not be able to fix. Is the adding of as many nations as possible a desperate act to float the EEC at that point? (That was an actual question I am phrasing myself!)

The last one is likely to be a mere speculation (read fiction), from my side. Yet, considering the steps as we saw the EEC change and grow from 2008 onwards, after economic blow after blow. Now Greece is selling bonds again, whilst at present, their economy is in no way ready to deal with the old debts as well as the additional new ones. Are you still surprised to see the Ukrainian actions?

I am not stating that Russia is in such a great state, but there is every indication that they are not in a bad state either (with massive parts if Europe depending on Russian Gas), add to that, the fact that the Middle East is now diversifying by making Russian arms deals and other deals, which should indicate that they will order less from the west. Cars, electronics and other needs are now more and more moved to Asian makers like China, India, Myanmar et al. Some was already there, but slowly the list of migration is growing. Australia will lose massive amounts of jobs as the car industry moves away (not one brand, but all brands within the next 36 months). We see that airlines are slimming down and as the news reaches us day after day, often just after some ‘good’ news reached us, the balance is not looking good. The west is becoming less and less the place to be.

I do agree that the economy is slowly getting better, but it is also changing. Both have an impact on most of us and I still believe that actual economic improvements are not enjoyed by many of us until late 2015. All these factors are linked, as they are told to all. This is because the Ukrainian people are also watching the news, reading it on the internet and the picture shown is not a good one. So, when they felt that they were about to get the short end of the stick, they all rose up, because the devil you know (Russia) beats the devil you don’t (EEC). That part the big bosses all forgot about and when they applied pressure, they lost the Ukraine. Now the escalations there might not be so much orchestrated, but the stories, as they came from their ‘new’ government is sounding less and less honest in their ears. They want the old days back and in all fairness, can we blame them? Moreover, are the involved nations even happy to add another nation who is on the brink of bankruptcy?

These questions have not been dealt with at all. The last one is one we should all ask ourselves. Why intervene in the Ukraine, whilst politicians have no solution at all for those in hardship and dying in Syria? That issue reflects directly on the people of Jordan and Palestine, especially after a second chemical attack, whether we believe these events to be stories of fact, fiction or fantasy. We are witnessing iterations of ‘the cost of doing business’ on a global scale. It is however the local people who pay the bill through taxation and the Ukrainians seem to be very unhappy about the changes and the bill they will get presented with.

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March 4, 2014 · 15:13

Israel stands alone

I wish I had better news, but the situation as it deteriorates in the Middle East, might in the next immediate period give more pressure and dangers to the state of Israel then anyone realises. Is it more than Israel thinks it is? That is a little harder to see, but I feel certain that their bad case scenario had included options even worse than I would be able to foresee.

This is not just on the issues raised by the USA, or EU as published (at http://news.sky.com/story/1217922/us-and-eu-urged-to-halt-weapon-sales-to-israel), it is also the issues which will hit Israel as we see a deteriorating war theatre in Syria. When we see “Amnesty International criticises what it calls Israel’s ‘callous disregard for human life’ in its handling of Palestinian protests against occupation“. Is that the actual truth? Over 4000 attacks from Palestine missiles and mortars in the last 5 years against Israeli civilian targets, making almost 70 attacks a month for 5 years, so basically a little over two attacks a day, every day for 5 years (even more in the 5 years before that). These were almost all fired at civilian targets, which makes the Amnesty International report a coloured one. I am not just writing this from the back of the room. I have been there, I have seen the consequences and people that I know of have been in direct danger because of the acts of Hamas, Hezbollah and the groups acting in the Sinai. So, this is not just a far away from my bed situation (Dutch expression). When even today in 2014 see that the Palestine’s are stating “The Palestinian Authority adamantly rejects Israel’s right to exist” on a daily basis and the fact that this is still shown and proven at every turn. Is it a surprise that the tensions are not and will not be broken any day soon?

The second issue comes from State Secretary John Kerry, as mentioned by Sky News (at http://news.sky.com/story/1205342/israel-boycott-warning-dismissed-by-netanyahu),where we see the quote “US Secretary of State John Kerry had suggested that a failure of peace talks with the Palestinians would accelerate calls for a ‘de-legitimisation campaign’ against the Jewish state”

Is that so? The issue, as it has been known for decades is all about Israel’s right to exist. NOT ONE government has been able to swing this in favour of Israel EVER! So Mr Kerry, are you sure you want to be the one that is known as the person who acquired the label ‘the failed superpower USA‘ as we see not just the issues in Israel, but also the failings of campaigns involving Afghanistan, Syria and now the Ukraine? I am not stating that the last two should have been about military intervention, but diplomacy did not work. As the Syrian issues keep on escalating, the dangers that escalations move south of the Syrian border is not out of the question, when that happens the dangers for Israel will quickly increase. Even though many parties do not want the Syrian government to completely fall and left in the hands of several smaller extreme hands, the dangers, even if Syria moves on without President Assad will mean that pressures towards Lebanon will mean that the extremists now attacking Israel on a regular basis will end up with a lot more resources then they have at present. As we look at the mentioning of economic sanctions, the handling of it as we see in the newspapers about economic sanctions have for the most never ever worked.

Cuba is still there, even though it has been under massive economic pressure since 1962, the economic pressures against North Korea since 1950 also failed. They are still there; these two have nowhere near the resources of Russia, so how will the sanctions against Russia ever work? In addition, Russians are acquiring businesses all over Europe; the acquisition of Siebel in the Netherlands is one of the most visible ones lately. How will sanctions work in these cases?

This is all linked to Israel, let me get to that.

As we see the power of government (the US in particular) fall back because it has no power to stop businesses in many ways, we will see that governments are slowly losing power on a global scale (so not just the US). To some degree it will all be about the business and the local religion they depend upon, this evidence is seen as we see watch where big business remains and how it can deliver its projected forecast. This has been fact since the early 90’s. Now, as Europe needs and desires to do business all over the Middle-East, they will unite their view according to the need of their business. This does not make Muslims or Christians anti-Semites, yet the acts of individuals have been, especially when lacking moral and cultural insight, anti-Semite in nature. As long as the business makes that they need to achieve, they can get away with most acts of pro-profits. This places Israel, with a unique national religion in a dangerous place. When we see the article at http://www.haaretz.com/jewish-world/jews-reluctantly-abandon-swedish-city-amid-growing-anti-semitism-1.301276, in addition the news at http://www.ynetnews.com/articles/0,7340,L-4456356,00.html shows another side of one of the most liberal nations in the world. This is not a statement against Sweden, but the fact that this level of hatred goes on, even today, in several nations gives rise to the acts of Israel. Until the ‘right to exist’ is met by all its neighbours, and the Middle-East at large, this will go on and on. If anyone wants to make a statement on how it was ‘theirs’ in the past, then remember that the tribes of Israel were not just in Israel, they held parts of Palestine as well as a sizeable chunk of Syria as well. As this place became ‘slave shopping central‘ for both the Egyptians and the Romans, that area went from all to naught within 5 generations. So what is a solution? Well, as for the issues at hand, we could request two payments one from Egypt for 25 trillion and one from Italy for almost 50 trillion, not to mention the damage the Jewish population suffered from fanatical German acts. I am certain that Israel will make a deal to some extent. So if we go back long enough the issue could be settled, but the involved parties have nowhere near the funds to make restitution. In the end, is there a solution? It seems that there is, but not a peaceful one, not until the involved parties are willing to sit down and actually talk. In that regard, the US intervention has little or no power to hold any of it up. It is, especially at present, willing to sit at any table for economic reasons (not that this is a bad thing), but Israel knows that whatever deal will be gotten, it will not end good for Israel, the US knows this, it has always known this and at present, in their economic state of destitution they cannot afford to care about it. This is partially why the entire Iran situation will not be accepted by Israel, nor should it be by many nations. Be aware, I am not speaking out against Iran in this matter, but the issues as former president Ahmadinejad escalated them can easily happen again. Iran is the third largest nation in terms of oil reserves and this is why many parties are so adamant to make a deal with Iran (at http://www.reuters.com/article/2013/12/31/us-china-iran-zhenrong-idUSBRE9BU03020131231), as China is making new deals for oil, Iran will get an additional incentive of well over 80 billion, which the US is now missing out on. In an age of cash is king, the US is demoted from king to a mere tiny Earl and this is more than upsetting to these high and mighty US oil barons. Their business is wavering. So, as they will push for more and more business, the dangers Israel faces are also increasing. This is not about Hassan Rouhani, who so far is showing and proving to be an international diplomat. Israel fears what comes next in 2021. There is no indication that Hassan Rouhani is anything but a moderate, however the next one might not be like that and anyone who follows and is one step closer to a new Ahmedinejad will give the state of Israel a direct nuclear threat to deal with. They cannot allow for such a dangerous situation. It is all good and nice the things that John Kerry (as State Secretary) claims now, but when things go wrong, he will sit from a distance negotiating for talks whilst Tel Aviv partially glows in the dark. At that point those poor poor Iranians will be willing to talk (after the fact). When, at that point Israel stops existing, the Mediterranean is no longer a viable place and the fallout dangers to the eco systems of Greece, Italy and Spain will be regarded, by the US administration, as unfortunate. When a nation has no options, every step is one too many. Is my assumption a fair one? Consider the acts of former Iranian president Ahmadinejad; consider the acts of Hamas, Hezbollah as well as the Al-Qaeda groups currently in the Sinai. Mohamed Morsi was only just in office when Egypt’s Muslim Brotherhood started staging anti-Israel rallies in Cairo.

I feel certain that John Kerry has been aware of all these dangers, as have the members of the state departments all over the world. So, if any solution is ever to exist, then getting the ‘right to exist’ for Israel, will be a mandatory first step.

So when I stated that Israel stands alone, I was not kidding. For those who are eager to deal with the oil states, will have to deal with many who are opposed to the existence of the State of Israel (avoiding stating the term anti-Semitism here). In this era of government bankruptcies, the Cash is King approach is painfully visible and there is no clear solution in sight any day soon.

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January 17, 2014 · 04:20

Year of the last Euro?

Wednesday’s news on ‘George Osborne lays down ultimatum‘ seems to have remained a little quiet. So, was it all hot air, or are there silent runners under the waterline? The situation reminds me of a poster I once saw. It was a photograph of water, with the by-line ‘Submarine racing, a spectator sport!‘ I thought it was quite funny. Whilst scanning for the latest on this event, I find several people mentioning it, but no real update for a day. The Guardian article was quite informative (at http://www.theguardian.com/politics/2014/jan/15/george-osborne-reform-eu-quits-tory-dismantling ). However, I regard the BBC version of it a little better (at http://www.bbc.co.uk/news/uk-25740462)

The BBC article does however have two items I do find interesting, but they are slightly debatable.

The first one is “I believe it is in no-one’s interests for Britain to come to face a choice between joining the euro or leaving the European Union.” Why is it one or the other? In my view, the only part keeping the EU from collapsing is because the United Kingdom DID NOT embrace the Euro coin. I will get back to this a little later.

The second part is “The 28-member group also had to do more to ensure economic competitiveness with rivals like India and China, he added.”

I feel that the UK could become a lot stronger if the Commonwealth brethren embrace each other as family and as mutual protectors. This means that the UK should become the centre force in group that includes Canada, Australia, New Zealand and India.

In my view, the issue is that Chancellor Osborne is too adamant to sing-a-long with the American tune. I view this like a game of musical chairs. An iteration game of leave one out! The problem is that this game includes one chair that is only meant for the rear end of America, so it will always have a chair to sit on. They should not even be included in this game, but there you have it, for some reason they are part of the EU game.

So let us get back to the first part as promised. The EU (or EEC if you prefer), has 28 nations. In the GDP rankings the UK is at number three. The issue is that the top 7 has Germany, France, Italy, Spain, the Netherlands and Sweden (these 7 are 79% of the entire EU GDP). Only Germany is in a good position, The Netherlands is on the thinnest ice imaginable, whilst Sweden in its economic state seems to remain skating on the ice it has (for now). The rest has gone through the ice and are in a bad place. So, why should the UK risk it all and add themselves to a currency that is drowning itself because the local politicians refused to stop spending when they could, they kept on spending when they should have stopped and now they are in that bad place. Many should be thankful that the UK and Sweden are not part of the Eurozone at present.

In addition, Greece, according to Finance Minister Yannis Stournaras does not need any more austerity (Nov, 2013). Spain stated “The budget is based on a forecast that the Spanish economy will grow 0.7 percent next year, up from the government’s previous forecast of 0.5 percent.” (at http://www.nytimes.com/2013/09/28/business/international/spanish-budget-avoids-austerity-measures.html). Yet Bloomberg noted on September 5th “Spain’s bid to meet its budget-deficit target for the first time in five years is running into trouble, fuelling concerns that increased financial stability is masking deeper economic problems.” So, what is actually happening here? Are we witnessing new waves of creative accounting?

In light of all the bad news, it must also be noted that France is at least still fighting to keep the austerity in place, even though President Hollande is slowly becoming the least popular president in French history. I applaud him for standing firm and I do hope he will not share the fate of Louis XVI (a one-time treatment at ‘La Guillotine’). Italy is for now also on the Austerity track, but internal developments are not good and there are signs that Italy cannot continue the course it currently is going. So out of the 6 (not including UK) one is doing decently well, two are on the edge and the rest is for now in a bad place. This is not the time to switch currency, especially as the UK is slowly recovering, to add their heads to a block whilst the Axeman is spending the night away. It is more than just bad politics to do so.

So, we see percentages all over the place, but in the end, what does it mean? Well, let’s take a look at the numbers (as far as I found them, and a stern warning, the numbers are unverified and not from the best sources). In my defence, the numbers do not seem to be clearly presented anywhere.

Sweden, the smallest and not in the worst state is a little over 1 trillion debt at over 180% of GDP, Spain at 2.3 trillion, which is over 150% of GDP, Italy at 2.4 trillion, but interestingly seems to be at almost 100% of GDP, the Netherlands at 2.6 trillion, however the numbers I found place them at almost 350% of GDP, France is at a whopping 5.1 trillion and like Sweden around 180% of GDP, lastly Germany owns over 5.5 trillion at a ‘mere’ 140% of GDP.

Whatever some of these so called economists are trying to tell you (they are hoping you do not revolt against additional borrowing), the current nightmare is far beyond the issues you can imagine. the populations of Sweden is almost 10 million, the Netherlands is at almost 17 million, Spain 47 million, Italy 60 million, France 66 million and Germany at well over 80 million. You see, in the end, the taxpayer gets to deal with these trillions. So, a large nation might seem safe, but consider France, where austerity seems unbearable and with that sizeable population, the debt comes to over 74,000 euro per person. The average income for a Frenchmen is almost 32,000 euro a year (before taxation), which makes the debt more than 2 annual incomes from every implied French resident. So, when people get angry, they need to get angry at previous government administrations that had spent to such a degree that the current debt is unbearable! (Something I have mentioned in several previous blogs.)

This is also the danger of UKIP! I am against the UK moving out of the EU for several reasons, yet the changes could be forcing the current British government to consider the one step that UKIP desires most, what a mess that will make!

Part of the issue I am struggling with is actually in another article in the Guardian (at http://www.theguardian.com/commentisfree/2014/jan/15/europe-welfare-spending-george-osborne). I do not agree with parts of it, but the article is well written and the writer Alex Andreou does set out his position very well. So, please do read it for yourself. My issues is with “The fact that as a continent we have embraced values of social security and solidarity, a high standard of education and health for all, and dignity in old age, should be celebrated.” I am all for that and I am in favour of that too, yet governments all over Europe (including the UK) have overspend by such a massive amount that cutbacks in these times are extremely painful. I get it, but previous administrations lived under some umbrella with the picture of a sun, which they took as an eternal summer! Instead of caution, they ignored basic rules and just went all out on a spending spree. Now that all the money is gone, the coffers are instead filled with ‘I OWE U’ notes. When every nation spends more than they are receiving, no one will have any money left, yet governments started to borrow to one another. So, those in debt were borrowing massive amounts to one another, even though no one had any money, is no one catching on? This is my issue! I am all for social security, but if we do not have the money, how can we get it done? In addition, Latvia, the newest member of the Euro states (at http://www.bbc.co.uk/news/world-europe-25567096 ) “The former Soviet republic on the Baltic Sea recently emerged from the financial crisis to become the EU’s fastest-growing economy.” Is that so, in that regard we can read the following at http://www.baltic-course.com/eng/finances/?doc=83279 “The state budget is projected to have a deficit in 2014, 2015 and 2016, according to the medium-term budget framework that Saeima approved in the final reading yesterday, informs LETA.” so the newest member already goes into deficit from day 1? This is quoted in the following way in the article “The medium-term budget framework is based on the following GDP growth forecasts: 3.7% in 2014, 4% in 2015, 4.1% in 2016, 4.1% in 2017 and 3.9% in 2018.” so already above the limits as stated by Brussels. Compared to the top 7, the amounts they refer to seem peanuts in comparison (al 35 billion of them), the issue is moving forward and gaining economic strength, not add to the massive debt. As I see it, the Latvians have plenty to worry about and in my view; the UK and Sweden would remain well warned and not join the Euro.

Time to get back to issue 2!

I stated earlier “the UK could become a lot stronger if the Commonwealth brethren embrace each other“. As the issues evolve, the Commonwealth should revert to a new British Empire, but only in an economic way (undoing the work of Ghandi looks wrong on way too many levels). One of the big dangers is the Trans Pacific Partnership. Australia and New Zealand are in my view to eager to add their names to an approach that is all about keeping America in ‘power’! Why do I have this view?

There are several articles, but at http://www.businessspectator.com.au/article/2014/1/14/technology/tpp-trades-us-clout-expense-innovation we see some of the issues that will bug many in the Commonwealth.

The quote that starts to scratch the surface is “in 2009, total patent applications made through the patent co-operation treaty process from applicants in these nations also exceeded those from North American applicants for the first time.”

This is the fear America has, which is why they are so eager to get all the autographs. You see, as I see it, Americans became (or were in the eyes of some) complacent, lazy and greedy (the American industry, not the people). For example, as I see it, the IT industry took a page from the arms industry and stopped true innovation and replaced it with iteration. A disastrous step as you will soon see. The powers at IBM and Hewlett Packard, as I see it, decided to listen to military giants like Raytheon and Northrop Grumman. So, America went from the innovation based, which brought the leaps from the 386 through to the Pentium II, and we ended with iterations like I3, I5 and I7. Newly coated computers, which now move forward in stepwise motion. The issue is that Asia had a huge delay keeping up and this all changed as their comprehension improved, in addition, it is for technology insiders relatively easy to learn the path of an iterative technology. This is the first step of fear as America is now facing it. Asia has its own group of innovators and in my personal view the passing of Steve Jobs took away one clear path of innovation. When Apple moves in that same iterative path, the last true American innovator will be lost! Now Asia has a massive advantage and as such America needs to clamp down on whatever they can, with the massive debt and no clear future path their world will all be about Intellectual Property! The article touches on it with the following quote “But what if the real motive of one or more parties was to isolate, control, enrich, deprive, penalise and stifle? In effect, to put a toll on the drawbridge.”

This is at the centre, but not at the core of all this. That is why we see the mention that India is seen as a competitor, because for America, they truly are the new competitor. That deadly error was made by the American administration in 2011. Forbes tells us about it in http://www.forbes.com/sites/henrychesbrough/2011/04/25/pharmaceutical-innovation-hits-the-wall-how-open-innovation-can-help/. They published it in April 2011. That story shows only part of it. The quote “The patents granted to these drugs last for 20 years from the date of filing, and since most drugs take 7-10 years to get to market, the pharma companies have known that this moment was coming for the last 10-13 years. It is the logical outcome of a deeper problem, which is that pharma R&D spending has been less and less productive for many years.” gives us two parts. One is that there are clear indicators that the pharmaceutical industry has been working on borrowed time. The second is that the ROI has been dwindling down and that these corporations will face the horror of generic medication as several patents hit the end date in 2015. That means in just over a year, the largest maker of generic medication (India, in case you were wondering) will get to have a go at several extremely lucrative prescriptions. Perhaps you remember news messages on how the FDA was so against Canadian medications. I personally considered that entire issue to be a joke, but the underlying horror for America was already there. I mentioned in other blog articles on the issues I have had with the Dow Jones index (‘Start making sense’, 11^th march 2013). Now consider that the three large pharmaceuticals Johnson & Johnson, Merck and Pfizer represent 10% (3 out of 30) of this index, so America is plenty nervous here. Now take into account that these three will have several expiring patents by December 2015 and that means that within months India could have a quality generic alternative, which is likely to be more than 70% cheaper. Now, be aware that a generic medicine is often less effective than the original. Still, the price difference is huge. It is not just the US; the UK has its own share of pharmaceutical makers, so the knife does cut in two ways in this case. Still, when we need to cut back again and again, India could be a good thing for the Commonwealth at large. So, even though some see the TPP as an option, there is implied evidence that the TPP could strongly block innovation.

How does this link to the Euro? No matter how we twist or turn it, the hard times America will face as it has been facing them for the last few years will intensify as innovation remains absent. That will hit Europe in several ways. The Netherlands already saw that as Merck shut down activities like Aspen Pharmacare. The intertwining of corporations on that level are all over Europe, and as such as American Pharmacies are hit, their European links will suffer a lot more because of it. So, yes, India is a competitor there, but the UK together with Canada and Australia could look for a cooperative solution with India and not see them as the competitor (as America currently does).

So is this all linked to the end of the Euro? Yes! It does however depend on the actions of the UK. If is stops membership, the run on the markets and the panic Germany faces could be catastrophic for the Euro, especially as Germany cannot rely on the pillars named France, Spain and Italy. The other nations are either too weak or too small.

Could George Osborne be wrong?

That depends on your point of view and your allegiance. The latter is implied as I noted the reference to the musical chairs with the one reserved seat. News messages like “the call to end austerity by ‘insiders’ from Brussels”. Yet, in the other light governments must reduce their spending and they need to get clever about it fast. The UK non-working military recruitment solution at 1.3 billion is just one clear example. Pretty much every EU country has its own skeletons. I see that the UK could be stronger as the Commonwealth nations take a route of preference to strengthen their economies, it is clear that such a path in Europe would remain stagnate until late 2015. That does not make George Osborne right, it only means that a European route might work, however it will be a long term path and switching to the Euro (at present) does not seem to be a stable solution for the UK to implement.

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