Tag Archives: Switzerland

March 13, 2015 · 11:35

True torture

This issue started a while before this. The title “Tony Abbott: Australians ‘sick of being lectured to’ by United Nations, after report finds anti-torture breach” is just an incentive for emotion. (at http://www.smh.com.au/federal-politics/political-news/tony-abbott-australians-sick-of-being-lectured-to-by-united-nations-after-report-finds-antitorture-breach-20150309-13z3j0.html).

There are two quotes that need to be looked at: “Mr Abbott’s criticism of the UN follows his attack last month of Australian Human Rights Commission President Gillian Triggs, in which he called the report she commissioned on children in detention a ‘political stitch-up’” and “The United Nations report, by the UN’s special rapporteur on torture, finds Australia is violating the rights of asylum seekers on multiple fronts under the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment“.

I am all for human rights! I think Human rights are important, but what about the people ‘orchestrating’ the message?

Let’s that a look at the message ‘U.N. Urges U.S. To Treat Migrants as Refugees’ (at http://www.npr.org/blogs/thetwo-way/2014/07/08/329774643/u-n-urges-u-s-to-treat-migrants-as-refugees). The message seems to be clear, but what is that message? When we consider the quote “The refugee agency is particularly concerned about the large number of unaccompanied children arriving in the U.S. Washington estimates more than 90,000 unaccompanied children will arrive by the end of September“.

This was the news of last year. You see, what we all ignore (especially Labor and Greens) is that this all has a cost, it does not matter whether it is in Australia, Canada or America. When we accept refugees we accept financial responsibility to some extent. This is the not so nice part if us trying to be good and humane, there is a cost and we do not shy away from it, but we have limits, we all do! With every irresponsible act of spending what none have we limit our options and limit those who we allow in as well.

There is however another side, the side from the UN as we see the title ‘Asylum seeker torture report: United Nations special rapporteur Juan Mendez responds to Tony Abbott criticism‘ (at http://www.smh.com.au/federal-politics/political-news/asylum-seeker-torture-report-united-nations-special-rapporteur-juan-mendez-responds-to-tony-abbott-criticism-20150310-13zrwz.html). The quote “I think we in the United Nations also deserve respect and I wish the Prime Minister had taken my views on this more seriously and engaged with my rapporteurship more constructively” is a defence and a subtitle, also a statement that is not incorrect, but perhaps incomplete. When we see the quote “Among the concerns raised by the report was that escalating violence on Manus Island, and the ‘intimidation and ill-treatment of two asylum seekers’ who gave statements about last year’s violent clashes at the centre was in breach of the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment” issues come to light. Now, it is important that I am not making any claims of dishonesty or that the claims are lies. There would be no way for me to prove it. In addition, it is nice that we get these ‘verdicts’ from the UN, an administrative group where those ‘voices’ are incomes vastly above minimum wage, an income fuelled by other governments, but guess what, EVERY single one of these nations are in debt, not one excluded! Yet, this is not about money, or the income of some of these comfortable living executives. Let’s take a look at some of the elements.

Let’s restate the phrase: “intimidation and ill-treatment of two asylum seekers“, now, I am willing to blindly accept the following:

  1. There are likely more than 2 victims
  2. Let’s accept that in every case it is always both intimidation and ill-treatment

Now let’s take a look at the information form Amnesty international (at http://www.amnesty.org.au/refugees/comments/33587/), where they state the following: “There are currently 1,100 asylum seekers detained on Manus Island, all of whom are men who arrived without their families. These men have fled war, chilling acts of torture, threats of death, or profound discrimination. Many of them have made the desperate decision to make a perilous journey from Indonesia and other countries, including Sri Lanka, to Australia“.

Now, let’s be realistic and accept that more than two people have faced certain ordeals, there is no way for me to clearly find (at present) how many faced events. But if we take 20 people, than the issue revolves around 1.8% opposed to 0.18%. 1.8% might be too large, and I would agree with it, but we all seem to forget that a detention centre like that, is a place with constant pressures and clashing cultures, there are uncertain times ahead for many of these people, so pressures will come to a boil pretty fast in a place like that.

I am trying not to trivialise, but the need for better statistics is evidently required before we start a dictionary war between Australian parliament and the UN, whilst we know that the media is ‘presiding’ both sides whilst they enjoy the benefit of the occurring discord.

Yet, in the end, the actual culprit has not once been named. Oh, evil villain, oh master of the dischordian principle that weighs the loom of infinity unto the hands of fate. I have seen thee oh villain and I name thee………. (wait for it)………. Tax-Man!

Yes, in all the issues of emotion, so many forget that humanitarian aid must be paid for. Humanitarian causes require funds to exist, as do immigration centres, because they are a pure cost for any government. Which is one reason why Greece is getting rid of them tout-suit! In addition, they are so broke they are now returning to the need for WW2 reparations from Germany, which I will not condemn, but in reality, their own Tax-Man did not do anything, which covers close to 1/3rd of all their debt. So as they ignored current debts (and irresponsible spending), they go back to WW2. It makes perfect sense, the Greek PM and that finance ‘Rock Star’ have no other options (if they want to remain in power), but this is not about the Greek debt!

This is about refugees and the truth is that many nations (most of them), they are all failing refugees, mainly because of Tax-Man. You see, this super villain relies on the help of its sidekick Mrs. Poli Titian and this sidekick has been overspending, giving tax breaks to large corporations in a whimsy notion that under those condition more money would come in. It was a flawed approach, because they all rely on people SPENDING money. Guess what? They overspend on luxuries and are now paying it off, many have no jobs and many more have been in an income world that resembles the world of Frozen, whilst the cost of living is still rising. All this adds up to empty coffers.

So Mr Juan Mendez, where will these costs come from? This is not my lashing out, this is me actually asking. I remain in favour to help refugees as much as possible, but how? We need to make massive changes to the way of life we now have. Mrs Poli Titian needs to actually instigate massive changes. Not just in Australia, US, Canada et al. ALL nations need to accept certain changes. We need to readdress the way we think and I will admit right here, right now that I am at a loss how to go best about it.

In my view, there is an option, but it is not one you like, not one you will even find acceptable or humane.

  1. Retirement homes are as per now only for those without family. If they have family, they must go there. This needs to be a global change

Yes, you are all upset now. Yet consider, if we unite families we shrink the costs of arranging all this, yet in answer, those funds will ALL go to legal aid, health care aid and refugee aid.

  1. Refugees can come in, but only assigned to volunteer positions for places like Salvation Army, St. Vincent, Red Cross and other volunteer places. For this they receive room and board. It will give aid to other places, work force and support. For that they will receive a place in our community and after 5 years they will get automatic citizenship.

Non-compliance means expulsion from that nation!

This is not even that harsh, the situation could become a lot worse soon enough, then what will we do? As we get all these academic people (and governmental expert consultants) telling us how things will get better soon, hoping that they can avoid actually answering the question in earnest.

The Greek example of their detention centres might have been the most outspoken, but I feel certain that they are not the worst, not by a long shot. Real refugees want to work towards a better future, my solution seems to be less, but it still gives them a guaranteed future for them and their children.

The parliament of Australia site gave me two paragraphs that matter (at http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp0001/01RP05).

“Asylum seekers are drawn to particular countries by a range of obvious factors-proximity, family and ethnic community networks, employment opportunities and wage levels, generosity of welfare systems, levels of tolerance within existing societies, and the accessibility of determination systems. In Europe last year 70 per cent of asylum seekers sought protection in just four countries-Germany, Britain, Switzerland and the Netherlands. Acceptance rates are more revealing of a country’s political priorities, or its attitude to migration, or the weight of numbers it has had to deal with, or its diplomatic relations with ‘sending’ countries, than the genuineness of refugee claims” and “Australia is perhaps unique amongst Western countries in its capacity and willingness to remove failed asylum seekers; in other countries most failed asylum seekers simply remain. Australia has however joined other countries in attempting to discourage new applicants. The most minimal welfare payment, special benefit, is provided to illegally arrived asylum seekers even after they have been determined to be Convention refugees; they are provided with temporary visas with no family reunion entitlements; and they are denied access to settlement services tailored for and provided free to off-shore refugees”

In my view refugees would (read: should) willingly go to any place that will accept them, this information gives a slightly different view. It is also interesting that the information is incorrect. The Dutch numbers are going down, whilst the Swedish numbers were going up. Moreover, the Swedish numbers are over 25% higher, yet the premise of the writ is not strongly affected. In this light we will see that the economies of the large 6, Germany, France, United Kingdom, Sweden, the Netherlands and Switzerland will soon change stronger and stronger if large changes are not made. Reasoning is that ‘in earnest’ (not in condemnation of any kind), refugees are an economic burden. They often cannot speak the language, the culture is different and there will be other moments that will stop them from becoming an asset to any future (most important their own future).

The solution that I am proposing might seem ‘inhumane’, but they are cast in places where people are less likely to take advantage of them. They will be in places helping their new nation and as such themselves as well and they will get exposed to a strong impulse of skills, language and cultural foundations that will only propel them stronger in future. In that light their children will already be eligible for schools and will help them build even stronger foundations.

Is my plan the best? No, it is not, but by giving it to large industries, who gave a massive part of that to their own members of the board is certainly never going to be a solution. This is not some anti-industry chant. The issue is that life in any environment requires equilibrium. A ‘coalition’ and politicians with their ‘after-elected’ need, as I personally see it, have been uniting for the need of a few and that need has been answered for these few to such an extent that the many are now no longer regarded as essential. We have now entered into the realm of trimming. Not the trimming of the fat, but the trimming of non-consumers and in the short minded view of the industry, those, of whom they think no one needs. But in that same view we will also trim our humanity, reduced to be workers, for the lessened good of consuming.

My view is not a good one, but as I see it, it beats where we are moving towards. In the end, is my view just an exaggerated negative view? I personally wish it was so, but consider the following facts:

External debt and population

  1. Germany – 5.5 trillion – 81m
  2. France – 5.7 trillion – 64m
  3. United Kingdom – 9.5 trillion – 65m
  4. Sweden – 1.1 trillion – 10m
  5. Netherlands – 2.5 trillion – 17m
  6. Switzerland – 1.6 trillion – 8m

Now take the next part in close (but sceptical consideration), one report claims that for the UK servicing the debt costs a mere £43bn, which amounts to the entire defence spending of the UK. The UK collected a forecasted 650 billion in taxation last year, taking 6% of the budget away just to keep Even Steven, so if the UK wants to move forward they need to budget on 90% whilst collecting the 100% forecasted part. It is quite the miracle to make that happen. Now the UK and Germany are doing reasonably well (compared too many other nations), but they too have issues. When we look at Sweden and the Netherlands; that image swifts a lot faster in a downward spiral. Perhaps some will remember the issues Switzerland and their currency had a little over a month ago in my article ‘A seesaw for three‘ on January 18th 2015 (at https://lawlordtobe.com/2015/01/18/a-seesaw-for-three/)

We now see the picture adding up to a lot more hardship, and add to that the refugees:

  1. Germany 571K – 144
  2. France 210K – 310
  3. United Kingdom – 194K – 319
  4. Sweden – 86K – 106
  5. Netherlands – 75K – 222
  6. Switzerland – 50K – 154

Now the view is almost complete. So for Germany we see 571,000 refugees, which means one refugee per 144 non refugees. The 144 pay for the way of one refugee. We could think that this is easy, but now consider that taxation is down, so the required money is not getting in (for various reasons). Now we see the problem, how can any government continue to support a sliding scale? This is not about fairness, because it is not fair on the refugee. I will be on the first line stating this, but when the bills are due, fairness will no longer be a factor. If we want to resolve the refugee solution, so that we all can continue giving them a future, something must give way. We can hope for a much better economy, but that is a ludicrous fantasy, even if the economy suddenly upgrades by 15%, these nations will still be hurt by the overspending and the consequential bills that became the headache for well over a decade.

So in my view we either change the way the refugee issues are addressed, or soon thereafter Australia will not be the only one sending back refugees, with the consequential nightmare that such actions will bring.

So as I contemplate the words of Juan Mendez, I wonder if Mr Mendez has considered the dangers of true torture when funds run truly dry on a near global basis. We all need to look at how it can be made better as we all should consider such steps, but in addition, no one seems to be looking at the cost of it all, yet the pressures of the rising costs of helping refugees getting a future are not being addressed in this economy, why not?

 

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February 9, 2015 · 11:25

Questions that follow

Is it not an interesting day, for some Mondayitis is only just now setting in, for some the Mondayitis issue is just a ‘fab’ for others to avoid becoming active until Wednesday around after lunch time, and for another group, well, we never know what they are up to, so let’s ignore them for now. There is however a group that works 24:7 (please do not imply that those people are journo’s).

I am talking about the financial institutions, no matter how we oppose greed, it is the one motivator that will never stop being efficient in many walks of life. That consideration came to me as I read the article ‘HSBC’s response: ‘Standards of due diligence were significantly lower than today’‘ (at http://www.theguardian.com/business/2015/feb/08/hsbc-responds-revelations-misconduct-swiss-bank) this morning.

The article is to some extent a barrel full of laughs. Let’s have a look at some of the mentioned things. The fun already starts at the second sentence “Private banks, including HSBC’s Swiss private bank, assumed that responsibility for payment of taxes rested with individual clients“, you see the word ‘assumed’, in this case that translate to, the bank sets the responsibility so that it makes an ‘ass’ of ‘you’, banks do not work from the ‘me’ setting (ass-u-me). When was the last time when you received a letter from a bank (any bank for that matter) where the word assumption was used? Most banking contracts have two one-sided parts, what your responsibilities are and how you get charged the moment you make an error (like simply withdrawing a little too much). So are you giggling yet?

The next one is an interesting one for more than one reason “HSBC’s Swiss private bank has reduced its client base by almost 70% since 2007“. Yes it is interesting, because WHERE did those people go to? The fact that they moved away from HSBC is no indication that there was a sudden massive influx of taxpayers, was there? So was the exodus reported on? My bet is that this was not; the statement is likely to be ‘this account is no longer under our care‘. This hunt for tax evasion, sounds nice, but it also comes with a flaw, not that I oppose such hunts (I will forever be roughly $1,915,000 short from making that list), but did some of these ‘witch hunters’ realise that moving these funds would have a side effect? You see, it would all be good and fine if those accounts all resorted to their original nation getting properly taxed, but that is not the case is it? As these Status Quo places get upset the dynamics change, when the accounts can no longer be hidden on Bermuda, the Cayman Islands, Switzerland or Guernsey. How long until we see a new circle of banks, now in Bahrain, Dubai and Jeddah? Do not think this will not happen, because it already is happening (at http://www.thenational.ae/business/banking/dubai-islamic-bank-confident-on-loans-portfolio-thanks-to-record-profit), so as we are reading on how a bank voluntarily moved from 78 billion to 45 billion, I have to wonder on the impact of the sentence at the very end: “However, providing client data to foreign authorities would itself constitute a criminal offence under Swiss law“. This than gives rise to the question how these changes are enforced. More important, the sentence implies that providing client data to local authorities is an option, and what they do with it, is not covered here, but it is an interesting question to consider.

The second article, which also came from the Guardian discusses more HSBC issues in ‘HSBC files show how Swiss bank helped clients dodge taxes and hide millions‘ (at http://www.theguardian.com/business/2015/feb/08/hsbc-files-expose-swiss-bank-clients-dodge-taxes-hide-millions), so is this High School of Business Concealers a real bank? Well, that is a moral question not a scientific one. This is where we see more ways to get a case of the giggles. “The Swiss arm, the statement said, had not been fully integrated into HSBC after its purchase in 1999, allowing “significantly lower” standards of compliance and due diligence to persist“, so if we consider the leak by Hervé Falciani, which happened in 2007, considering the fact that the Swiss bank had been acquired in 1999, the simple question ‘Were banking executives allowed to sit on their hands for 8+ years?‘, the question might seem unfair, but no alignment in a bank that was until doing 78 billion seems very odd to me. It almost sounds like a trial in equity. “Yes, sir, I have washed my hands of everything and I have made very certain that I am not being kept in the loop for anything“, might make for interesting academic considerations, but so is the story of the Mayfair prostitute with her Hymen intact (the moral is that neither is realistic).

When you read on you will see the sentence “We have opened a company account for him based in Dubai“, so is the interest of HSBC moving towards additional banks? That question is not asked and should some consider asking Lord Green (who was group Chairman of HSBC in those days), they are unlikely to get any answer.

It is so interesting to see the HSBC onslaught all over the Guardian, but this is not just about that event. It is also nice to see how last weekend, Yahoo reported on how the Swiss Franc is boosting business in German brothels, so in the end at least one party is getting screwed (the question is who of course). Weirdly enough, the Telegraph has a passable view written by Peter Spence (yes, I am surprised too). The end has the quote that mattered in my view “What has happened in Switzerland might be a sideshow compared with larger global players, but is illustrative of a world in which central banks are increasingly looked to for answers“, I am not sure whether this is entirely correct. There is a difference between incorrect and wrong, and this one skates on two sides, you see, the mess, which I discussed in ‘A seesaw for three‘ (at https://lawlordtobe.com/2015/01/18/a-seesaw-for-three/) is still at the heart of this, there is a credit swap in play with many governments in play, it is a global dance act which includes the US, Japan and the bulk of the EEC nations, as tax havens are now under scrutiny, the people using them are looking for options, some will make a deal, but the larger part will be looking for an alternative, I reckon that the Swiss have been very aware with the move of those HSBC accounts and the question is not just where those 70% moved to, but who else will be moving sooner rather than later. When you consider that, we see the picture as it reshapes the issue. The Swiss are holding on for dear life and at some point the Franc will lose some of its value, but as this happens, we will also see a currency destabilisation. That part is seen (in my personal view) as Switzerland is no longer playing the ‘offset’ game for other loans, which means that the game will transfer to other shores, but which shores will they move to? That part is not a given, but when we see how new players are now willing to become a member of the banking secrets. The United Arab Emirates and Saudi Arabia would only need to adopt two rules in their banking laws (if they have not done so already).

  1. Providing client data to foreign authorities constitutes a criminal offence.
  2. Personal wealth can be declared via the bank, who will charge a fee of n% (where it is likely that n < 5).

After that, both the Oval office and Buckingham palace can kiss any chance of those taxable billions goodbye, which could spell a massive exodus from Bermuda, Cayman Islands, Guernsey and Jersey towards sandier shores, which will hurt the Commonwealth beyond expectations. All this started from the wrong viewpoint from the very beginning, the US became reckless on how it dealt with its 18 trillion in debt by going after non-taxed fortunes from American account holders, this drive (supported by many) started a new fire and now that the flames are getting higher, those avoiding taxation are moving to shores where not only is taxation an almost impossibility, it will also limit the other acts done by both the US and the EEC to keep their currencies high, which is an act that will backfire to some extent for a longer period of time.

Personally, I am all for holding the wealthy tax accountable; we all have to pay our taxation. Yet, at present, in this economy, we are now chasing those cars, whilst we have no parking lot, so even if one is caught, what to do with this person? The US, Greece, the UK and a few others should have seriously changed certain laws half a decade ago; this mess would not have been so complete. The fact that this hunt is so visible at present gives also pause for that what we do not see. Yes, we see that the US added 257,000 jobs in January, but how many are not shown as we also see that RadioShack is filing for bankruptcy this week with over 4,000 shops expected to close (2,000 went to sprint). A host of Shale gas companies will go the same way, whilst the mountain of companies going under in the oil and gas sector is a lot larger than many can fathom. These events have a clear bearing on the banks too. Shale gas operations, oil platforms, all these places will get hit and it will affect many banks who held onto debts with the certainty that black gold brought, now there is no blame here, yet the consequence of persecuting tax dodgers will also come with another negative boost as a league of them will move to the Arabian shores, when that happens, the little stability the Euro and the US dollar had, will go straight out of the window.

Here is the kicker, no matter how wrong the expression ‘let sleeping dogs lie’ is seen in light of the tax dodgers, we must wonder how much lower the coming negative financial waves would have been if the hunt for the tax dodgers would have been delayed. In the end, it was not a solution to not go after them, but the timing truly sucks. This situation translates to governments getting kicked in the head, just as they had just accidently stumbled through no fault of their own. Yet in all this, Greece has made ZERO clear steps in dealing with its own tax dodgers, so where to go next? More questions are to follow, but I am not sure if there will be ANY answers forthcoming as it seems that three parties have painted themselves in the corner, whilst the fourth was not in the room at all, in addition these four parties aren’t even clearly communicating with each other, their only goal is to meet their own needs whilst three cannot move and the fourth can’t get into the room, one would offer the thought that a mere pre teenager would have done a better job of it all. I am not sure if I could disagree.

 

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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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January 23, 2015 · 12:17

The danger topic

That is at the centre for me today. I have had a little dry spell, for some reason; I could not get the words coming from my fingers in a balanced way. Not sure if it was the news, or if it was the lack of news. Even as we are slowly strolling to new escalations when Israel was going after Hezbollah and got a free upgrade to a dead Iranian General. Just as I am still not convinced it was North Korea to begin with (that Sony event). We see additional escalations, escalations that are moving the prying eyes away from many small fields that are now on the verge of making rather large changes to all of us.

First there is Greece, we see an escalation of more and more ‘giving in’, all these professors, all about forgiving debt. Yet, when will we see the Greek officials in prison? When will we see ACTUAL prosecution of corruption? It is like a group of people, who keep on feeding the junk money for the train home, knowing it is spend on drugs, booze and perhaps a few hookers (I mean ladies with flexible morals). When we consider the Guardian (at http://www.theguardian.com/business/2015/jan/21/eurozone-exit-greek-grexit-germany-france), it seems to me that some statements like “Today a Grexit would weaken German and French banks, and cost the German government up to €77bn and the International Monetary Fund a slug of its loans, but would be unlikely to frighten global markets or undermine the 14-year-old currency bloc“, as well as “The Bruegal Institute in Brussels is not the only think-tank to believe the estimated €250bn cost of a Grexit, while covered by the bailout funds, would cripple the Eurozone and delay recovery for a decade“, give the taste that people need to avoid the Greek exit, but is that not at the foundation of the junk needing a fix? Those in power desperately want to stay in power. I am not talking about Greek politics, they want to skate on emotion and fairness, whilst not prosecuting, or holding to account those who were responsible for the current situation and it is about to get decently worse. You see, as America is close to hitting another debt ceiling, we will either see the raising of debt, or a reshuffle of numbers so that the debt will ‘conveniently’ seem like less. It is not just America, even though 18 trillion takes the cake and the icing. We need to look with the harsh light at the decisions the Europeans (through Italy) are now showing a new race. At The Bruegal Institute in Brussels is not the only think-tank to believe the estimated €250bn cost of a Grexit, while covered by the bailout funds, would cripple the Eurozone and delay recovery for a decade we now see that the ECB is about to spend 1.1 trillion for bonds. When we see “The Frankfurt-based bank will use electronically created money to buy the bonds of Eurozone governments – quantitative easing – to try to boost confidence, push up inflation and drive down the value of the single currency, helping to increase exports and kick-start growth“, can we agree that when an economy needs a trillion dollar kick-start, that the patient is not sick, it died and it is not going to live long, no matter how much money you pump into its cadaver shaped foundation. You see, we all need a little boost every now and then, but 1 trillion is not a little boost, it is the setting of a massive debt, whilst getting the continued revenue for those who are already well beyond rich. The last is not entirely fair or correct, but consider these statements we see all over the place that the richest 1% will own well over 50% of the planet by 2016. Yet we need to pump more virtual cash on the population? This is not just the continuation of a bad idea, it seems that the bulk of the governments are not holding themselves or others to account. So as we see “Today the ECB has finally arrived as a truly ‘European’ Central Bank. It has acted against political opposition to deliver what is by most measures an ambitious programme of quantitative easing,” he said. “The ECB has finally, if belatedly, done its part. Now it’s time for the Eurozone to relax the fiscal constraint“, we also see the dangers that the debt will change the curve of debt release for a lot longer, whilst the taxpayer deals with the debt of ‘spending’ now, the people will not see true new jobs,  or longer term employment. So how is this ‘easing’ a good thing for anything else than the non-accountability of the governments connected? This gets me to the second part, some state that it is fiscal constraint, can in equal measure not be stated that this is for temporary fictive fiscal restraint? It is just a point of view. If we see Fiscal constraint as: ‘a reasonable comparison of planned expenditures to expected revenues‘ and Fiscal restraint as ‘Fiscal restraint is used to reduce inflationary pressures. The strategy is to shift the aggregate demand curve to the left with budget cuts or tax hikes‘. So as we see the mention “push up inflation and drive down the value of the single currency“, why was the mention Fiscal constraint and not ‘fiscal restraint’? Perhaps it is as easy as two sides of the same coin, but the guardian does not elaborate on both sides at all. This might have a valid reason, but should the audience not get a ‘better’ picture, especially as an additional trillion in fictive currency gets added to the market. This all calls into additional account the Swiss actions of last week, perhaps they saw what was likely to happen and they are very concerned for the consequences of these implementations. In addition, the acts of the usually ‘extremus sobrium’ Swiss should pause us to question a few matters.

Now I am not talking some conspiracy theory, but the fact that we usually get confronted with some high end decision and we the people are left with the invoice, should the papers at large not educate us? And with that I mean educate us a lot further beyond the ‘column’ and a copy and paste part? Again the last part is not fair and not correct, but the information part is massively missing. Again, me is not of being an economist (bad grammar intentional), but that I share with a massive part of the audience of those reading a newspaper.

So now we get to the part of German Chancellor Merkel (at http://www.theguardian.com/world/2015/jan/22/angela-merkel-greece-debts-german-world-economic-forum-davos), I wholeheartedly agree with the quote “it must take responsibility for its debts, as the country heads into crunch elections that could reignite the Eurozone debt crisis“, we gave support again and again (in the way of extra funds), whilst again and again we see the Greek demand to be held non-accountable for it all. We see the need for the Greeks to renegotiate their loans, and payments, whilst striking with the decent regularity of someone getting new clothes. Now, I am not having a go at the Greek population, they have been handed a raw deal, but let us not forget, this raw deal was given to them by their ‘fellow’ Greeks. So, it seems that the anger at others is a simple variation of the blame game. It is an understandable one, but still not the correct actions as I personally see it.

So as we move towards whatever option we could get to, the ‘notion’ of a World Bank Chief making a climate action plea, is not a bad one, but fixing the economy before spending a ton on infrastructure, a massive amount that is not bringing Europeans any ‘debt relief’ seems a little beyond proportions. It is almost like reading on how we need new trousers, whilst the bank has cancelled all our bank cards and our pockets are empty. This is not an exaggerated example. The debts in Europe are for a significant side way beyond proportions.

Consider the following quotes: “Tsipras wants Athens to be forgiven some debts to cut the cost of repayments. This would allow Greece a partial default while staying inside the euro. Brussels has said this is naive politics, if only because Ireland and Portugal, which also have mountainous debts with the EU, would ask for the same” and “Zsolt Darvas, one of the institute’s economists said: “I am convinced that Greece will need new funding from European partners, but its volume should be a few dozen billion euros, say €20bn-€30bn”

So not only are the Greek introduced to more stories by ‘Mother Goose’ Tsipras and in addition they will need another infusion of a few dozen billions. So, that comes to well over $2000 for every Greek. What is this money used for? Paying debts? Paying more interest bills? The latter now shows the link between the richest 1% and their unequal growth. In my view it is the foundations and settings for legalising slave labour. How will the Greek population EVER get out of debt?

Which gets us to the final quotes from the Guardian: “A newly minted drachma would be low enough to attract holidaymakers, but without the investment in new hotels, the industry could barely cope. Likewise, investment in new industries would be unlikely unless Tsipras can honour his pledge to root out corruption, something that has eluded the right-wing New Democracy party“, the Greeks cannot rely on tourism as is, especially when they return on the Drachme and that will be valued at 35,000 Drachma to the Euro (just voicing a fictive exchange), and without removing the current implied levels of corruption there is no solution other than the fact that loads of these cash incentives will go towards those who need not benefit and the Greek population gets even less options.

So as we look at these dangers as it will hit Greece and the rest of Europe, one must wonder why these people remain on the spending horse knowing it has not made a decent difference and knowing that added debts will delay economic fortune for additional decades. How is this ever going to be a solution?

 

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January 18, 2015 · 22:37

A seesaw for three

I have heard many things in my life, there was a motorcyclist with a lack of discipline for speed run straight into Bus 70 in Rotterdam (the Netherlands), the consequence is that his brain got tactiled by his motor helmet; neither him nor his helmet was able to overcome the pressure of driving into the side of a bus at full speed. There was a girl jogging on the train tracks, her jogging in the rhythm of the music, she never heard the train whistle, the train was not able to slow down in time, she did not go faster, the girl lost the encounter, the train did not suffer injury!

All this relates to the item at hand, when we consider the seesaw (many child joyed at the mystery of that temporary conundrum) we see that it is a simple game of equilibrium. I push, my partner goes down, my partner pushes, I go down; there is little mystery in this exercise. So, what happens when we have a third player? When we have a double up on either side, that side goes down until that sides kicks off again, the bigger the difference the harder the action. However, there is a second version, in that version party number three is in the centre, on the seesaw axis, there this party defines the balance. That game seems nice, but it is no longer a game, the gamers at the end of the seesaw seem to get nullified playing. This is how I see what happened in the last 48 hours.

The most interesting source in this case is a site called ‘Quartz’ (at http://qz.com/327410/absolutely-everything-you-need-to-understand-what-happened-to-the-swiss-franc-this-week/), with this quote being the most interesting one “Because it was creating new francs and using them to buy euros, the SNB’s currency holdings exploded. This is hugely important. In the United States, the Fed is buying the safest financial instrument in the world, US government bonds. It can hold those bonds until they mature and be virtually assured it will be paid back. The SNB, on the other hand, is acquiring a giant pile of currencies that can whipsaw in value, potentially exposing the bank to large losses“, it is interesting for two reasons. First of all there is this part: ‘the safest financial instrument in the world, US government bonds‘ and there is ‘The SNB is acquiring a giant pile of currencies that can whipsaw in value, exposing the bank to large losses‘. I took a few unessential words out of the second quote. What we get is with one, that the illusion that US government bonds are the safest. With a president unable to control its spending, the US is about to start new wars, setting them back billions, the Dow Jones Index is trusted less and less, whilst in addition more sources are stating that a stock market crash will happen any day now (at http://www.moneynews.com/MKTNews/Market-Collapse-Finance-Stocks/2013/03/01/id/492699/). I have no value on moneynews.com, what they show looks nice, but charts can be explained in more than one way and what is ‘disastrous’ to some, can be explained away by others. I have had similar thoughts on the changes to the markets, but not based on these charts.

So as the stock market would collapse, the dollar would take a massive dive. The Dollar is about to take a dive because it is so intertwined with the Euro in many ways, so as the Euro takes a tumble, so will that mighty ‘safe’ dollar (not to mention the 18 trillion of debt). So now we get the second issue, if the danger to the SNB (Swiss National Bank) is so volatile, why take any risk at all. You see, the Americans (some not too bright) went after all these rich billionaires hiding their funds outside of the US. So the Swiss always played along, because if push came to shove, they had American billions, perhaps even a thousand of them (trillion dollar joke), which means that the risk was relatively small. As America hunted down these artful tax dodgers, those Americans struck deals and took away their cash, so why should the Swiss take any risk for the irresponsible spenders on end of the seesaw? It’s like there is one European on one side, two Americans on the other side and Switzerland was on the axial holding the mess in balance. Now, the axle player stops playing and we get this mess.

So when we see “The bank’s foreign currency holdings have grown to about 75% of GDP” and “So the SNB decided to abandon the ceiling on the franc, in response, the spring-loaded franc shot higher“, makes perfect sense. Why should a nation with a relative low debt hold this much in risk? So now we get a new dance! “The SNB’s decision to suddenly go back on a previous policy it had claimed to be committed to will make markets think twice before taking the bank at its word. That’ll make monetary policy tougher to carry out in the future” shows two sides, one is he term ‘previous policy’. That sounds pretty nice that Switzerland is shown as ‘the bad guy’, yet, is that true? Policy is one thing, but it requires accountability on the other side, for the Franc with a ceiling is one thing, the fact that the roof might be made from papier mâché during a blizzard is not good news if you are Swiss in nature, the ceiling issues requires actions from all involved players. Especially when the foreign currency holdings of Switzerland is set at roughly 75% of GDP (going by the numbers QZ is showing), if you doubt this, then I ask you to remember that small place called Cyprus, when that went pear shaped, the Cypriots were left holding an empty bag (a little under 2 years ago). I am not at all surprised that the Swiss want a better option for themselves and getting out whilst they can is not the worst idea. The last part is seen in this quote: “five years after the worst of the global financial crisis and Great Recession, the world still seems to be tip-toeing toward a deflationary vortex. It will take serious political efforts from governments and central banks to move against the tide. The ECB finally shows signs of joining the fight, which is a good thing. But the SNB’s decision suggests that some governments are giving up and just letting the current carry them away“, this I need to do in the following parts:

  1. ‘It will take serious political efforts from governments and central banks to move against the tide‘, America has not kept their debt in check (as well as the ‘big’ Euro 4), it is still growing with a change of the guard (US presidential re-election) as well as the fact that another US debt ceiling is reached within the next 8 weeks. Add to that the Euro taking a few extra hits, this all adds up to a massive risk to Switzerland.
  2. ‘The SNB’s decision suggests that some governments are giving up and just letting the current carry them away‘, this is the killer. The currency effort of not maintaining its value is implied as the Euro goes down (implied, not a given), in addition we see the Greek news ‘Inside its smoke-filled HQ, the far-left party is making plans to defy the EU over Greece’s debt and abolish draconian austerity measures imposed to shore up the euro‘ (at http://www.theguardian.com/world/2015/jan/17/greek-elections-syriza-europe-eurozone-alexis-tsipras), so next week, if this becomes an issue, the Euro takes another big bashing because the Greeks could not contain themselves or the debt that they had created (their governments), so now the other players must pay for the short-sightedness of the Greeks. Why are there not more political parties very outspoken in this regard? I mean with the debt at hand, your private island could be a nice future (I’ll take ownership of Paros for 499 Euro)!

These elements are all in play, yet no one considered the effect of the risks. That empty headedness (as I personally see it), this part becomes visible when we look at ‘Swiss Franc Trade Is Said to Wipe Out Everest’s Main Fund‘ (at http://www.bloomberg.com/news/2015-01-17/swiss-franc-trade-is-said-to-wipe-out-everest-s-main-fund.html). This is all interesting, especially “Everest Capital’s Global Fund had about $830 million in assets as of the end of December, according to a client report. The Miami-based firm, which specializes in emerging markets, still manages seven funds with about $2.2 billion in assets. The global fund, the firm’s oldest, was betting the Swiss franc would decline“. Did we not see this before (was it in 2004 or 2008)?

When we consider the additional “The SNB’s decision to end its three-year policy of capping the franc at 1.20 a euro triggered losses at Citigroup Inc., Deutsche Bank AG and Barclays Plc as well as hedge funds and mutual funds“, which is due to the line ‘including a wager that the Swiss franc would fall‘. So if that is the case then several people made a very ‘dumb’ wager. The question becomes ‘did they make a bad wager, or was this orchestrated’?

There is no way for me to prove that there was any intent (I am not saying there was any orchestration, only asking on the chance of it). Yet, does this not represent another case of putting a few billion eggs in one basket? Yes, I agree that the statement “The franc surged as much as 41 percent versus the euro on Jan. 15, the biggest gain on record, and climbed more than 15 percent against all of the more than 150 currencies tracked by Bloomberg”, consider when we see the light of the seesaw, and the 75% of GDP that the SNB holds in foreign currency. When it makes this leap against the said 150 currencies, how much discipline are some currency controllers not showing in light of the earlier quote ‘some governments are giving up and just letting the current carry them away‘. Perhaps the question that Katherine Burton (the writer) at Bloomberg should be asking is “How come such managed levels of foreign currency holdings were left out in the open to this extend, especially after the Cyprus issue” is a question that should have run with every front page on the planet (at least 4 weeks ago), so it is not just the SNB that is now getting the spotlight, my questions becomes, which decision makers are now hiding in the shadows for allowing such levels of risk. It seems to me that a ‘policy’ is a poor excuse when people frown on the SNB, whilst not asking how it was allowed these levels of foreign holdings in the first place.

So when we look at the Guardian ‘Swiss currency crisis claims casualties across the world‘ (at http://www.theguardian.com/business/2015/jan/16/west-ham-sponsor-alpari-swiss-currency-crisis) “This has resulted in the majority of clients sustaining losses that have exceeded their account equity. Where a client cannot cover this loss, it is passed on to us”, so how many were ‘gambling’ that the Swiss Franc would take a dive and why did no one foresee this risk (when you bet the house and all your belongings on a ‘safe’ bet, you only have yourself to thank for moving to a carton box). The last statement sounds a little crass, but we saw this before then hedge funds took a dive, so why is there a lack of these checks and balances? Yet there is more, the Guardian has two more quotes that show the dangers here “We are very different to Alpari, which was designed for people who want to speculate” and “But I’m surprised they went bust so quickly. Ultimately, they should be able to go back to the client to recover the money they lost” which is the part I expected initially. When we see these levels of speculation, the question becomes, who was checking the window for icebergs ahead?

Finally there is one quote at the beginning, which I steered around. The quote “Shares in FXCM slumped 40% ahead of a formal announcement about its future after it admitted it faced $225m of losses“, should keep you thinking. Consider the question, that one currency jump could have this drastic an effect on Forex Capital Markets, the online Foreign exchange market broker based in the US. So, even though this could happen, the fact that it did, seems to be a nightmare for several players. All this and then we see the most astounding part in Forbes (at http://www.forbes.com/sites/timworstall/2015/01/17/this-is-just-too-lovely-about-fxcm-just-too-lovely-for-words/). Here we see “It’s not entirely obvious that those higher margin requirements would have saved FXCM but still, that is fun, isn’t it? They lobbied against the rules that would have protected them“, if you read the article, you get the whole picture (I was not willing to use three entire paragraphs there), so the need for ‘better’ margins pretty much costed them the farm in the last few days and even though Forex might survive, we need to take a harsh look at the ‘gambling’ that has happened, not just because of the gamblers, but the entire ‘policy’ part from the SNB does not sit well with me. With Cyprus 2 years ago, this issue should never have been allowed to exist in the first place, so before we start blaming and lynching Swiss people, let’s make sure that we get a complete list of all the currencies and the values that Switzerland was holding on 75% of their GDP, because we should be asking those involved parties a few questions on irresponsible parking such amounts.

Tim Worstall wrote the gem in Forbes, but neither him or those who set out the parts in Bloomberg and the Guardian are looking at the bigger picture (as I personally see it), as this economy was playing a game of seesaw, how did these adult players not realise that the person on the axial (SNB) was going to lose interest being at risk on the axle, whilst the other two sides were having the joys and benefits of controlled up and down movements.

The evidence as I see it is a simple as watching children play in the playground, the axle position of the seesaw is not the favourite place to be, not even for a short time!

 

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September 19, 2014 · 11:34

To be deserted

I have seen the term more than once. I’ve heard people cry, whinge, rage and other emotional forms as they felt they had been deserted. This is fair enough, we all feel like this at times, sometimes with good reason, sometimes with reasons less so. In this case I am referring to the Guardian article (at http://www.theguardian.com/world/2014/sep/18/islamic-state-video-isis-uk-hostage-propaganda-message-gunpoint). Initially it is about the quote “Well it’s true I am a prisoner. That I cannot deny. But seeing as I’ve been abandoned by my government and my fate now lies in the hands of Islamic State I have nothing to lose. Maybe I will live and maybe I will die, but I want to take this opportunity to convey some facts that you can verify. Facts that if you contemplate might help preserving lives”

Let’s not beat around the bush. This man is a journalist, a photo journalist to be more precise. John Cantlie seems to be by all measures a decent man, even courageous. He went into a warzone to get the images the people seem to want to see, perhaps to please his station. It does not matter what label I give here, because it is about HIS reasons, and why HE did this. In the end, he entered a war zone and as such he became a casualty of war, yet this is not the war we used to know and the war we seemed to know. The entire Syrian debacle went from a ‘simple’ civil war and became a mess involving several parties and no clear solution. A mess that has chemical warfare, it included mass bombings on civilians and other elements. The conservative death count stands at 160,000, but I think that this number is off by a decent margin.

Getting back to John Cantlie, where several other questions seem to rise. Why was it ever a good idea to go into Syria? Don’t get me wrong, I admire the brazen way of this, the courage to go into the darkness to capture the unique moment, yet this is a warzone, with Al Qaeda all over the place. The short of it is that we do not and should never deal with terrorists. Yet, let it be clear that I do not speak out against John Cantlie. He drove his passions where it took him and in this case not to a nice place. I also agree with the following quote in the Guardian “When Haines was first shown in an Isis video in September, the Foreign Office urged the media to show restraint, and not to report that two other British citizens – Cantlie and Henning – were also being held ‘because we assess that coverage will increase the threat to their lives‘”, I agree, we should do whatever we can to lower the threat to these people and if there is an option to extract them using Seals or SAS, we definitely should, because the world needs people like John Cantlie who are willing to step into the darkness, whether it is for good or for less good reasons. In the end I believe that people willing to walk into a battle line will always be a greater asset to the world then those hiding behind the memo or the procedural issues.

Syria is a particularly nasty mess, not just because it is in its foundations a civil war. When parties decide to execute priests, a 75 year old Jesuit named Frans van der Lugt, who had been in Syria, giving aid to the sick, the hungry and the mentally ill for decades, a person doesn’t get to become more harmless to extremists then he was. So when we see these executions by Jabhat al-Nusra (AQIS), we wonder how to stop this. I think we are 3 years too late, now we are adding oil to the fire, which could escalate issues even further. You see, I think that America is making a new mistake, but they are not acting wrong! Let me explain! Headlines all over the world, with this one in the LA Times which is crucial ‘House approves Obama’s plan to help Syrian rebels fight Islamic State‘ (at http://www.latimes.com/world/middleeast/la-fg-congress-isis-20140918-story.html). It is my personal believe that America should not have done this.

My reasoning is twofold. First of all, there is every chance that Russia will sooner, not later take an opposite stance, which means we get additional escalations, second to all of this, there is a massive issue to what constitutes a ‘Syrian Rebel‘. This mix is no longer just Syrians, it includes Hamas, who might then use these weapons against Israel as well as Syrian rebels who are Al-Qaeda sympathisers, which means that they will end up being armed and pick up weapons for the Islamic state, so we do not have a win-win here either. It is my personal firm believe that these escalations should have been done by the other NATO members, without America and without the Netherlands.

I should explain this reasoning.

  1. America is in a bad state, to get America back as a superpower, it needs to cull internal greed, get its budget right and work off the 18,000 billion debts. Without America, there is no free west and as such everyone loses out.
  2. The Dutch should be left out if possible, not because of any lack; they can rip through steel with their teeth with the best of them, even on a Monday morning. The issue is with the Dutch photographer who was with John Cantlie initially. His name is Jeroen Oerlemans and he was released. The issue is not the Islamic State; the issue is that the foundation of Syria is still the base of a civil war. If we are to have ANY chance of diplomatic talks with Bashar al-Assad, then keeping one player out of this seems essential to me. We could always ask the Swedes or Swiss to intervene in these talks, but the release of the Dutch might have a relaxed stance in those talks.

This is all conjecture from my side, so feel free to completely disagree, yet consider that the only way to deal with ISIS is that at some point, parties will need to deal with Bashar al-Assad in some way and we need to keep any tactical avenue open. This is at the foundations of my thoughts here.

There is another side to all of this. There is another group we seem to forget about. There are a little over 3 million Syrian refugees, they are placed all over Lebanon, Jordan, Turkey, Iraq, Egypt, Algeria, Sweden, Bahrain, Germany, Libya and a few other nations. During all this time, these places had casualties too and they are not part of the 160,000 casualties, which is why I think the Syrian death toll is a lot higher. In all honesty, did you remember these refugees? I feel 100% certain ISIS has not forgotten them and if they are recruiting there we are in for one hell of a wake-up call soon enough. If there is any strength in number then these new ISIS members will be most likely in Lebanon, Jordan and Turkey, where they can up the ante of this entire theatre in the most expensive way imaginable, others might not be outspoken ISIS members, yet they are potential lone wolf terrorists. If some arrived in Sweden, France and Germany we already have a potential security problem on our hands.

Consider the following fact (at http://www.reuters.com/article/2014/04/24/us-libya-usa-security-idUSBREA3N0MW20140424), is Libya just dealing with Libyan extremism, or have some of the Syrian refugees taken up arms with ISIS? Now consider last week’s news ‘Egypt seeks broader alliance with U.S. over Libya‘ (at http://www.cbc.ca/news/world/egypt-seeks-broader-alliance-with-u-s-over-libya-1.2765468), again, is this just about Libya? Egypt has received well over 130,000 Syrian refugees and it is still dealing with the aftermath of the Muslim Brotherhood, who now has additional reasons to go extreme and with ISIS/ISIL willing to step into the limelight it can be safe to say we are not even close to the escalations we face.

Yet, here we see another version of ‘to be deserted‘, The Syrian people genuinely feel this way and some moved to ISIS, because when the Syrian mess started, they were not a factor. We face escalations in Jordan and we are seeing them in Libya and Egypt. The IB Times has additional info on this (at http://www.ibtimes.com/isis-training-egyptian-islamists-attack-security-forces-1680530), if this is truly true, then ISIS would have surrounded Israel to a massive degree, which could spark escalations sooner rather than later. The IB Times offers the following quote “A senior commander of the Ansar Bayt al-Maqdis, which has been active in the Sinai Peninsula of Egypt since 2011, told Reuters that Islamic State militants have been providing the group instructions and training on how to operate more effectively“. This means that the MFO could be in more direct danger. Less likely South camp, but the North camp near Al-Arish would give an open path to Rafah, which spells all kinds of escalations.

How true is all this?

I cannot tell as a fair deal is speculation based on second hand information, so it should be read with bias, yet if there is any value to it, it spells all kinds of trouble and keeping America out of it until we no longer can, seems essential. It is time for the other players (UK, Australia, Canada, Germany, France and Italy) to take the war to ISIS/ISIL now. Let’s not forget that America could still be a big help in setting up medical theatres for a still escalating Ebola havoc. The economist gives us a good view on the dangers on how it spreads and how America could be a true massive saviour (at http://www.economist.com/blogs/economist-explains/2014/08/economist-explains-10), not doing so, would the nations of Africa now feel that they were deserted?

In this blog we saw groups, all having reason to feel deserted and some definitely are not, yet some of those who were deserted for too long are now the most likely to switch sides to the dark side of insanity, is ISIS/ISIL anything less than that?

In the end there is one more view I need to offer. It comes from the Epic Times, more specifically the Jerry Doyle Show. I followed him on Facebook as a Babylon 5 fan, and only recently did I get to learn about his radio shows. He makes good points and he has a distinct view. I wonder how a televised debate between him and Bill O’Reilly would go, but this is not about any debate. In this case it is about a view Jerry aired (at http://www.epictimes.com/2014/09/congress-is-more-concerned-with-their-political-skins-than-the-lives-of-our-soldiers/), it was aired yesterday. In the article he states “Senator Harry Reid and Mitch McConnell are on the same page. The Senate is going to pick up the House government funding that authorizes arming the Syrian rebels and then head home for the election”, I think there is more to it than this. It is my personal believe that the agenda of Harry Reid and Mitch McConnell goes beyond that. Consider the other blogs, I have stated in several places how America’s freedom has been wasted away, giving power to large corporations and banks, to do as they will. Instead of acts that lower the actual debt, we have seen again and again how the debt kept on going up, this new ‘war’ and this pushes the American debt clearly over the edge of bankruptcy. My view is not wholly without merit. Consider the source Roll Call (at http://blogs.rollcall.com/218/continuing-resolution-isis-vote-breakdown), it gives a few views that many might not have considered. Is this truly about bi-partisanship, about polarisation or is it orchestration? I leave it to the people to make up their own mind, yet Matt Fullers view when he states “Neither vote was typical. Roughly equal numbers of Republicans and Democrats voted against both proposals. But there were some interesting trends hidden in both votes” make me wonder, was it just about trends?

So if this was about personal political gain, which other people got deserted in this process?

 

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