Tag Archives: USA

October 11, 2014 · 12:02

Intentionally not that bright?

On average, why do you not give your $2 (or £1) to the junk sitting at the entrance to the underground? Why are you hesitant to give the same to the drunk half passed out on the street? This is not a question of morale, or on the idea that you might have a ‘Samaritan’ bone in your body. This is purely human nature, we all do ‘good’ things at times, we give to the red cross, the Salvo’s, yet when we know that the money will go into health endangering acts, like money so the junk can buy more drugs, how do we feel then?

I tend to not give any!

I do my share, the daffodil, the heart foundation, starlight, legacy; the list goes on for a while. I do not give a boatload, but I definitely spend dollars on good causes. These causes make sense and I feel that there is a moral obligation to do things for those less fortunate than me. Yet, knowing a junk will buy more drugs stops me from giving, and yes there are no exceptions. I do not think my way of thinking is out there, many follow my lead. So why do I read ‘Poor nations ‘pushed into new debt crisis’‘ (at http://www.theguardian.com/business/2014/oct/10/poor-nations-debt-crisis-developing-countries), how moronic (read: overly simplified silly) is the act of giving loans to a group that cannot control a budget? When we see “Jubilee Debt Campaign says as many as two-thirds of 43 developing countries it analysed are at risk over next decade” as well as “Coinciding with the World Bank’s annual meeting in Washington, the anti-poverty campaigners accuse the international lender and other public bodies of “leading the lending boom” to poor countries without checking how repaying debts will divert resources from cutting poverty“. I would change that in how can we make international lender accountable for their own bad choices?

Not unlike Wonga ruling (at http://www.theguardian.com/money/2014/oct/03/payday-lenders-repay-loans-wonga), these nations should get those loans expunged and the international lenders will just lose their money. They will of course disagree, but the entire loan issue is getting massively out of hand and those enabling them get paid no matter what. This needs to stop.

Sarah-Jayne Clifton, director of the Jubilee Debt Campaign, makes a good case, yet overall she is not willing to far enough on one side and is treading where she should not on the other side. Let me explain this. At the end, the quote is “As such, the campaigners are urging the UK government to push for policies that support developing countries in increasing their tax revenues by clamping down on tax avoidance and evasion“.

No, no, no, no, no! That is not a good idea!

Pushing for policies tends to be a slippery slope (even though the approach is not that bad), in addition, the issue with developing countries and their tax push is only one side, which is the wrong side. These developing countries need to take a hard look on what they are spending these loans on and WHO they are enabling in the first place.

Let’s take a look at a few quotes from the past years and see how they fit in: “Ana Olivera took office on Friday promising to streamline the overweight administration of Uruguay’s capital“. Seems like a good approach. It must sting the Americans to no end that the elected official is a communist. OK, Ana Olivera is only mayor of Montevideo, but that village contains well over 50% of the population of that entire nation, which gives the mayor loads of political power. Uruguay is sometimes called the Netherlands of Latin America, because of its social approach, yet Uruguay is almost 5 times the size of the Netherlands and a mere ferry ride away from Buenos Aires (in case you want to have some cosmopolitan fun). There is method to my madness and here it comes. When we see the news in the International Business Times (at http://www.ibtimes.com/uruguays-economy-will-struggle-unemployment-inflation-it-will-grow-4-percent-2014-1540214), an article from last January where we see that some nations can get a decent grip on their debts, although inflation remains a worry for now. Bloomberg had some additional issues (at http://www.bloomberg.com/news/2014-02-19/uruguay-s-growth-pushing-inflation-above-target-bergara-says.html), “Uruguay, a nation of 3.3 million people wedged between South America’s two largest economies, has since become less dependent on trade with Argentina“, it gives rise to worry about inflation, yet it seems that they are staying on top of it for now.

This links back to the other ‘poor’ nations. These players seem to be given an unofficial charter of bad financial management. If it were just one or two issues, no! When we see the report that two thirds is in the high risk zone of getting a new debt crises, even though most of them got their debts written off, we can clearly see the proverbial pattern of junkies. This of course makes for the analogy that it turns the international lender as a debt dealer at best and as a debt pusher at worst. So, here we see my part of disagreeing with Sarah-Jayne Clifton. We need to put into place clear policies on how loans are to be allowed in the first place. How these nations are currently held to account (and accountable)! If we see a structural failing, then we have a duty to deal with that weakness and deal with the implied ‘pain’ from such irresponsible actions. Yet, governments and ‘overseers’ of these lending institutions seem not to be willing to do just that, we can assume we know the reason, but that is just listening to gossip ;-).

However, as I go for the expression of being artistic, there is this story about being black and that story is played by a pot and a kettle. How can we push for responsible, budgeted governing when the big players involved seem to be unable to do just that (USA, United Kingdom and Australia, but to name a few). Is it truly conspiracy theory inclined to claim that governments are over enabling banks and financial institutions? I am very willing to accept that I am wrong here, but the numbers all speak into my favour (towards my train of thought), so what is the link?

Consider the impact of Neoliberalism. Consider how the term changed usage and to a certain effect the value and application from the 1930’s, the 1980’s and it seems that the concept is changing again. In the 30’s it came from a desire to avoid repetitive economic failures that were visible up to the early 1930s, this resulted in the gesture of blame towards economic policy of ‘classical’ liberalism. Then later on it had shifted in meaning from a moderate form of liberalism to the radical and privately held transactions between parties, set in a ‘free’ (read: unaccountable) environment, free from intrusive government restrictions, tariffs, and subsidised capitalist set of ideas. Is it not interesting how this version as we see it now, is all about what it was with added non taxability and non-accountability? It is a new form of Neoliberalism with a twist that is all about enabling the wealth driven and the wealth begotten, yet in that view neo liberalism is not just a ‘new’ kind of liberalism, it is not just based on ‘old’ values of civil rights, freedom of the press, freedom of religion, and free trade. It is enabling non-accountability, non-taxation and even non-prosecutable to a certain extent. So the freedom they have been given are evolving into a total form of freedom where they obscure, device and decide, whilst the people get saddled with the bill of their appointed exploitation.

How is that liberal in any way, shape or form?

There is none more part we can look at. It comes from the paper ‘Neoliberalism and the Global Financial Crisis’ by Sharon Beder (at http://www.uow.edu.au/~sharonb/GFC.html).

The paper has a very fitting part where the topic headline reads ‘Financial Market Coercion‘ and we see “Whilst the IMF and the World Bank enforced the Washington Consensus on poorer countries in desperate need of capital, other more affluent countries were forced into adopting the same formula by the world’s financial markets. Their vulnerability to these markets was facilitated by financial deregulation“. This is what we see in action. Additional we see: “Financial deregulation was demanded by business interests, particularly large financial firms and transnational corporations that wanted to be free to move their money around. The economic argument for financial deregulation, supplied by free market think tanks and economic advisors, was that the free and unregulated movement of capital is more efficient, because capital can move to where it gets the best returns (Helleiner 1996, 194, Bell 1997, 103-4).”

Yet in that part, it does not state the one issue that is massively in play for governments on a global level. This is read in the part “free and unregulated movement of capital is more efficient, because capital can move to where it gets the best returns“, but what is does not state, which it should “free and unregulated movement of capital is more efficient, because capital can move to where it gets the best returns, absolvent of taxation and financial duties“. Now we get back to these ‘poor’ nations. Yes, they are getting pushed into new debt crises, as the facilitating business branches are all about getting money out and not paying for taxation which was enabled by neoliberalism (their altered version of) as I see it.

Is it not an interesting part that we now see the scary view that a Uruguayan communist shows more social responsibility then the ‘free west’ has shown in the last decade?

As I stated it before, when you make banks and big business the facilitator for the future, you will see that their only future you end up with is their own selfish needs. This is why the push for policies by Sarah-Jayne Clifton worried me; she might end up giving the keys to that group of people that should never have access to the keys in the first place, not if a nation wants to do anything for its people. Is there a better solution? It seems that either we go the Uruguayan way and deal with inflation dangers, yet the other way is equally drenched in risks and dangers. The first order is to set up the right policies that keep large corporations tax accountable. They might ‘threaten’ to walk away and to go to Paris or something like that, yet a nation has a multi-million consumers market. If a firm cannot do business, in the end, they stop from being a business and someone else steps in. We need to stop the greed that these investors represent. I am however at a loss to give a clear answer of what will actually work. There are too many variables and not enough people ready to stand up for that what must be decided upon, so we stay in an impasse, a status quo that had stopped being just that years ago, we just do not see clearly how much we lose every day, so we continue the status quo as is.

 

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August 27, 2014 · 11:10

Which coin?

This morning I was confronted with my own thoughts of the last few days. I am not stating anything new (at least I hope so). The American issues, the overly visible multi-billion dollar deals and a few other notions. It started earlier this week when I heard that a friend was made redundant. These things happen. It happened to me, it will happen to others too. The issue I had is that for a decent long time we have known that companies for the most are not too bothered with loyalty, for them it is about the bottom dollar, what is interesting is that they tend to DEMAND loyalty to a fault until they cut away the people who loyally served them, in some cases for decades, only to replace them with ignorant junior staff members often costing them less than 50% of whatever they are paying now. This is not new, this had been going on for some time and they do it nice and legal, at times segregating a staff member in a niche position, waiting a year, if that person had been around a long time even two year and then closing down that department, which saves them years of due income in settlements.

Weirdly enough, yesterday’s story about the bankruptcy of America is linked to all that. You see, this entire issue can be reduced to two coins. One coin is the government, on one side we see the view they have of companies and the other side is how companies really are. The second coin is how we see companies and the other side is how companies turn out to be. They are not the same coin, they are an entirely different currency all together!

That is the view the older generation does not seem to comprehend and what the younger generation takes for granted. However, the long term consequence is that companies will end up having the short stick in all this (but about that side more a little later).

Let us take a look at coin number one. The government coin!

Companies, for the most have considered themselves nationalistic, it gives them an identity and also the protection of the government branch should that ever be needed. There is Woolworths, the Australian place to get your Groceries; there is General Motors, an American Company, British Telecom a British company and so on. These are actually the old times, we and with us our governments have had this image. To some extent, an Ambassador still to some degree acts as an intermediary between cooperative businesses to promote trade. So companies get the support of a government enabling them to have easier access to business opportunities. Their importance goes back to the Italian renaissance, more notably when Vittore Carpaccio painted the ‘Legend of Saint Ursula‘ series; they are called Arrival of the Ambassadors, The Departure of the Ambassadors and The Return of the Ambassadors. Ambassadors were the dream of business as they opened doors for trade to commence and increase.

Today this is no longer the case, business has no affiliation to any government when times are good (when times are bad they whine for money and tax breaks), actually they always whine for tax breaks. You see, a company as many can see have only allegiance to their board of directors and the bottom line that they worship in a spread sheet. Today’s corporations are not linked to a nation or a location. Google seems to be the only honest one in that regard. They do not call themselves an American company, but a Global company. Their concept of location is fluid, it shapes to the need of tax relief and where the fastest servers are to acquire the data handed to them by well over a billion people on a daily basis. Yet, this is not about Google! This is about the way business is allowed to be done. In my view it has something to do with spineless politicians (not just in America by the way). As companies were allowed too many degrees of freedom, they opted personal need and gain instead of the greater good. This is not wrong or illegal, yet they use the facilities offered for them with all the freedom, which by the way is as it should be for the most and at the same time these companies syphoned billion through a multitude of tax shelter constructions, all perfectly legal. Did you know that hundreds of millions of people buy their downloads in Ireland?

An option to promote trade has for the better part of almost two decades been used to avoid taxation, not to improve trade and/or long term economic benefits (well they are, but only for the board of directors). The greed economy had been turned against the governments, most not willing to change in fear that they will walk away. This is one of the main reasons why America is basically bankrupt and not just America. Many of the commonwealth nations, amongst them Australia, United Kingdom and Canada who are feeling the effects of people buying online and these governments end up getting $0.00 in any form of taxation whilst the stores are shutting down one by one. HMV and the Virgin Megastores were likely two of the most visible victims of online retail changes, yet the online purchases ended up not having taxation of any kind, which does mean that a nation’s government is losing out.

My initial solution was to make a change that made any online purchase taxable in the land of the buyer, an idea that was never adopted, some thinking they ended up with more perhaps? But all lost out, as the e-Giants remained in tax sheltered nations. Particularly the US and UK missed out on hundreds of millions of tax dollars/pounds.

“Tax administrators face greater difficulties in enforcing tax laws and maintaining their community’s legitimate revenue base when dealing with international rather than domestic transactions, particularly when dealing with a jurisdiction that combines tax haven status with bank secrecy. Increasingly, tax haven regimes with bank secrecy laws in place are accessible to almost anyone with a modem and a computer“, which comes from Mr Carmody, Commissioner of Taxation. It was an Australian Taxation Office Media Release on November 11th 1997. So, this issue has been known for over FIFTEEN YEARS! Who else is late to the party? Well, that would be the United States of America, the United Kingdom, as far as I can tell Canada (not confirmed, due to a lack of knowledge of Canadian tax laws), Australia and this prestigious list goes on for a little while longer. Yes, we were getting played in a most auspicious way by whining, crying small minded board of director members on a global scale.

There is one more side to the first coin (source: http://www.internationaltaxreview.com/Article/3252311/VAT-considerations-for-e-commerce.html). The article subtitles drew me in ‘Nehal Radia considers the VAT implications of e-commerce and how taxpayers can take advantage‘. The article has a few good sides and they are worth reading about, but for me it helps illustrate another side, partially the fact that a view given here is not as I see it to be ‘the correct one’, which by the way, thuy were never debating.

Consider your own financial situation, you the reader. If you have a job, it is more than likely that you have not been getting too many job raises since 2012, yet overall, your rent, your food, your electricity and food bills did go up, in some cases by a sizeable amount. Now consider the quote “According to Forrester Research Inc., US e-commerce spending will increase by 13.4 % to US $262 billion this year, with an expected continuation in growth to $370 billion in 2017. In Western Europe, it is estimated that 2013 e-commerce spending will reach €128 billion ($165.5 billion), up by 14.3% from last year and with expectations of €191 billion ($247 billion) by 2017)“. Really? Do YOU have that much more to spend?

I do not think that this is the case at all, yet, I know Forrester and it is likely that these are indeed the numbers (if they did not make a weighting error). What seems to be happening is that e-Commerce is growing stronger and stronger as this group is avoiding VAT payments more and more, which means that shops are getting shut down as e-Commerce is passing onto you part of the VAT savings. Consider that VAT in the Netherlands is 21% and in Sweden 25%, how can a shop compete when these savings are to some extent passed onto the customer by the e-shop, whilst they can avoid VAT and they do not need a location with rent and electricity. Business views have skewed the market and governments are now losing out massively, whilst their own economy is also suffering under unfair competition practices.

If this is the first coin, I would call this currency ‘slow and asleep at the wheel’.

We are the second coin. Our view has for the most been to work hard, to get the job done and to bring home the bacon. It is a simple view, as we aim to be the ‘return on investment’; we create a comfortable pillow where we rest. Not because we are lazy, or because we do not do our part, but because we know that as long as we get it all done, our boss needs us. He had paid us a decent amount and as we are the cause for more income then we cost, we should all be in a great position. Guess what! We were stupid! Today’s management or better stated, whoever makes the coin decision tends not to be stupid, but to some extent short sighted. You see, he can get the same person in India, or that one person just leaving University, to do almost the same at half the price. Whatever ‘loyalty’ you think your boss has had towards you is no longer there, as we are no longer people we are just part of a spread sheet, as we cost more we get replaced to cost less as to not affect THEIR bottom line, which is usually their profit (read commission). There is of course an issue we should not forget, the economy is still bad, and yes, we have to accept that trimming the fat (the most costly employees) will also happen as some companies are drowning. They are now relying on image, without the revenue to support it. Yet, this is not about that side. The coin is on how we perceive on the company and how the company really is does matter, not how they do business. Is that so?

Is their corporate soul not depending on exactly how they do business?

It is hard to stay on this without getting into the debate on how companies sometimes make hard choices to stay afloat. It is more about the changed spirit of the business soul and how they hope that youthful ignorance might get them these 1-2 deals that keep them going. Yet there is a side which we seem to ignore. It is ‘interpretation’ of business.

Consider the Corporate Image Awards 2014 (something that was brought by the Frontier Consulting Group), a company that is actually an Indonesian company. In their ‘Corporate Image Survey Methodology 2014‘ they actually had a nice twist to this story. They stated for their fourth dimension called ‘attractiveness‘ two parameters, one was called ‘Dream workplace company‘ and the second one was labelled ‘Company with high quality employees‘. Here we see the crux. What is a high quality employee? One that looks dynamic (read 22-25), fast (read slim lined) and get the job done, which reads like within six hours and however many hours of unpaid time they need to finish the job before the deadline, or the veteran can actually get it all done in 6 hours. It is ‘the’ unspoken question that is here and is loudly ignored by those not willing to answer honestly and those who are very unwilling to admit the question, is actually a massive issue. ‘What is a high quality employee?’

I am left with two coins and a question. Are we, both the people and the government too slow to change, or are companies driving us to change in too inhumane ways to protect ‘their’ profit? I feel uncertain to answer it, there are unspoken sides that have not been dealt with and there is the need for greed by board members on a global scale which is yet to be properly scaled back, even in these uncertain financial times.

 

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August 26, 2014 · 12:03

About America, chapter 11

This is a short story; it is not part of a novel where you have seen the first 10 chapters. This is in all seriousness an issue when we consider Code of Laws of the United States, United States Code, number 11 deals with bankruptcy.

So why take my word for this? Why am I right, when every journalist, every economist claims that this is not the case? How diluted am I to think this?

These are all valid question. Now consider the facts. The US treasury (from various sources) had collected in 2013 around 2,700 billion dollars. This seems like a lot, yet the budget as President Obama stipulated in 2012, the budget had spending set to around 3,800 billion dollar, so the US is already 1 trillion short. If we consider the total US debt at 18 trillion, meaning 18,000 billion, then the total debt would need 100% of all taxation for 6 years, an act that is totally unrealistic.

Now take this to your own homestead. I remember that I could never get a loan for a mortgage for more than 4 annual incomes. Now, this is like comparing apples to oranges, but is my train of thought so far out of bounds? It is my view that these seemingly ‘clever’ economists have been rolling their gambling dice in several ways for too long.

Consider the Dow Jones Index. We get fed the line that the economy is good, because 30 companies are doing ‘well’. Ever since the ‘dip’ it took in 2009 to 6547 (at http://stockcharts.com/freecharts/historical/djia1900.html), the Dow has ‘restored’ itself to 16743 (as per now). So, in the time when all was well, before the first economic collapse in 2004, when the Dow was 11722, and until the second collapse in 2008 when the Dow went from 14164 to 6547 in 2009, we now are in a time when many in the US are down on their luck and finances, when many all over the world are feeling the brunt of recession and other financial calamities, the almighty Dow is at 16743.

Is anyone considering the notion on how dislodged the entire Dow Jones concept is in regards to the reality of life?

Consider the following information:

– Amazon is buying Twitch for a billion Dollars in cash (at http://www.theverge.com/2014/8/25/6066509/why-it-makes-sense-for-amazon-to-buy-twitch)

– Roche to buy U.S. biotech firm InterMune for $8.3 billion in cash (at http://www.reuters.com/article/2014/08/24/us-intermune-roche-idUSKBN0GO0PI20140824)

These are two of several (read dozens) of large shopping sprees, throwing cash around like it is nothing and as these billions come into the other parties’ hands, what taxation ends up getting paid? This is at the heart of the founding issue that should keep our minds busy ‘Is America Bankrupt?’

There are two sides. First there is the Sovereign Default. No matter how you twist or turn it, if a nation cannot pay its debt, it will default and should be seen bankrupt. A good example is Greece. After Europe bailed out a nation with 11 million people, by ‘giving’ it well over 300 billion, it is still complaining. The reality is that it should have been allowed to go under in bankruptcy. Not because I like it, or because I have anything against Greece (in all honesty, Crete is one of the loveliest places I ever saw). The natural cycle of economy has been ‘arranged’ (I would call it mismanaged) into cycles of only good news. You talk to any farmer, they will all tell you that no field can survive on spring and summer alone, nature is all about balance and as we threw away balance, we started to undo our own prosperity.

It is said that a business is stated as ‘insolvent’ when its debts exceed its assets.

Is that not the case here? I have stated in the past that I have reservations about the true value of LIBOR.

If we continue the question: “How much money they need to borrow from their peers to plug any holes in their balance sheets and if they have an excess of available cash, how much they can afford to lend“, which is at the heart of LIBOR (at http://citywire.co.uk/money/qanda-what-is-libor-and-what-did-barclays-do-to-it/a600479), considering that the margins had been played with in the last two years, is the idea that the total valued amount has also been tweaked?

This is all based upon an availability of actual existing Cash. But the entire system is based upon a certain value of assets and goods, as I personally see it, I do not trust that list as it is dependent on the ego of honest bankers, which seems an impossible concept and no one can produce at any given moment an exact list of it. So what value exists in all reality (not in the eager mind of a commission driven banker)?

We now get back to the Dow Jones Index. If we consider the past (when life appeared good) and the now where most of have lost a lot (if not all), then is that index not artificially driven upwards? This is not just my view; several parties, including USA Today (at http://www.usatoday.com/story/opinion/2013/03/04/federal-reserve–quantitative-easing/1963539/) are showing us a view that shows an economic system that is driven upwards in artificial ways. So we now get a different view. Are all these mergers and multi-billion dollar deals we see regularly now on TV about growth, or about the top of the US industry that seems to leave the sinking ships before the system collapses.

This is at the centre of a few issues, where the US is rallying for ‘support’ whilst not showing one iota of accountability to get its budget under control. The last part is at the heart of the need to call the USA bankrupt (not because I desire it). It will cost many a lot, but is growth not depending on the downfall of others? If we consider that all together we are 100%, does our growth not depend on the need that someone else does less? That intertwining, where we ignore basic foundations that growth is not eternal, we see that there is a consequence to overinflating (yes, this also applies to my ego).

Yet, economists have time and time again stated that there is more here and there (whilst they point to virtual spaces). Now we see the heart of the problem, who has the actual 18 trillion that the US is down for? If we look at the oil links, should USA perhaps mean ‘Unionized Saudi Arabia‘? If we consider the real wealth, are they not the ones holding the oil reserves (one of the big four) and as such, the outstanding debt? I know it is not that simple, it never is, but when we ask a summary of where the debt lies; we will get some clever list from a highly educated economist and some excuse ‘that it is all a lot more complex then it looks‘.

He is not incorrect, but he is also not telling you who hold the 18 trillion the US had been spending in one way or another and as such, the realisation should now be upon you. If America is bankrupt, then what will happen next? Japan will pretty much be permanently out of commission and I reckon the UK will be in very deep waters, but we the Commonwealth must find a way to go it together if we are to survive.

It seems to me that America never realised that lesson, like several others, they all used to max out a credit card in virtual space whilst the actual, supporting currency is not there, so why has America not been declared bankrupt?

I reckon soon enough we will get more and more long winded talks, but in the end no one is sayng anything because those who will be making the speeches are at the heart of what went wrong and no one wants to hold on to that guilt when those left without their house ask them the question ‘where are my savings?‘.

 

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August 1, 2014 · 12:12

Talking the Walk

Yes, today is an interesting day, in a time when we all have a notion of democracy; we must all wonder how much of a democracy is left. You see the freedom of choice and the choice in options means that the freedom given is also an inherent acceptance of accountability? If we make a small sidestep at this point, then I would like to take a step towards the Media Ethics as stated at mediaethicsmagazine.com.

There in the fall of 2008, T.L. Glasser and J.S. Ettema wrote an interesting article called ‘A Philosophy of Accountability for Journalism’, it is a good article to read and well worth reading (at http://www.mediaethicsmagazine.com/index.php/browse-back-issues/135-fall-2008/3639324-a-philosophy-of-accountability-for-journalism).

The initial line, as in any good academic article is right at the beginning, when we read “The problem of ethics in journalism, we want to argue, is not the inability of journalists to know right from wrong but their inability to talk articulately and reflectively about it“. I from the my viewpoint, for the point of view that many has seen as we see the ‘junk’ articles from Murdoch publications hit us is that the point given reads to many of us (roughly 99.32443% of them non-journalists) see the second phrased as “their inability to avoid accountability by speculate on the words of seemingly non-existent sources they will never reveal“.
What we get is gossip, branded as journalism, a speculative piece where no accountability will ever be required. This is for a lot of people at the heart of the need that the Leveson report would address, which is why Journalists in many nations, especially in the UK as a trade that had lost its integrity to many.
This is however not about the article, yet, I am mentioning it as the article is an excellent piece of work and the article actually is to some extent shows the moral compass within all of us. There is however one more quote that I will not go into now, but it has bearing on what comes next “which reminds us that discourse ethics does not involve a marketplace process which aggregates individual interests but a deliberative process which brings into existence common or shared interests“.

This is about today, the first day of a new day of default for Argentina (at http://www.theguardian.com/world/2014/jul/31/argentina-government-defiant-debt-default-axel-kicillof). We seem to have been all about the banks and their evil practices. I know, because I have been one of them. The question becomes, what happens when you accept doing business with a loan shark? I wrote about it in my blog ‘Changing the rules of Democracy‘ on July 27th.

When the IMF wanted to restructure debts in 2003, USA as stated stopped the IMF; I want to know the EXACT reasons why. Perhaps they are valid, perhaps not! I also reflected on the fact that someone went to the Vulture funds and signed a deal. What was that deal exactly and who signed it. You see, Argentina is not blameless here; at some point, there is a knock on the door and at that point, the bailiff will want his coin, which is pretty much what was settled in court.

The Guardian article raises a point through the following quote “Economists at the Washington-based Centre for Economic and Policy Research called on the US Congress to intervene, warning in a letter that Griesa’s decision to uphold the holdout investors claim could cause ‘unnecessary economic damage to the international financial system, as well as to US economic interests’“.

You see, in all fairness, is that acceptable? If a system is brought and evolves devoid of accountability, how can we ever get a better world? I have pressed for accountability on many sides. On the side of Journalism as I embrace the full Leveson report, on the side of the banks as their soulless acts have diminished the value of millions of account holders, yet here in this case, are they not on the morally higher ground? No matter how despicable Vulture funds might be regarded as, these people offered a deal on conditions of risk because no bank wanted them, or in the case of Argentina, as the USA seemingly prevented the IMF offering a deal.
Now, when the deal is due, the client requesting the deal is not willing to make payment. So, as the facts are shown, I have to be (alas) n the side of the vulture fund, who offered the deal. If not, then I myself must abandon the premise of accountability, which is pretty much not an option.
If we accept the implications of communicative rationality in the sphere of moral insight and normative validity as the setting for discourse ethics, then I would like to change it (mold it) into the following statement: “If we accept the implications of agreed contract terms of rationality in the sphere of moral choices and normative acceptance of a loan” then we are getting to the part why I added the Journalism article on accountability for journalism.
This I now link to the quote I mentioned from the Guardian article. This is the cost of doing business! Sometimes you win, sometimes you do not, but to go out in response to change the game, because there is a cost, then we have a new problem. Do not misunderstand me, if there is some kind of a bail-out deal, then that is fine, but it would be understandable if it comes at a cost, more important, it might have been avoided all together if the 2003 IMF deal had gone through, so why was the 2003 deal stopped?

I understand and I do not disagree that the Argentine government is stopping it all and taking the ‘default’ path, yet, that too will come at a cost. Accountability should prevail here too. Is it for the better or for the worst? That is a discussion that is speculated upon, but for now it is one that comes without a clear answer. So, I cannot, without clearly more evidence to agree with cabinet chief minister Jorge Capitanich here. You see, who signed for this all in 2003? It is the inherent consequence of governing. The bill is pushed forward, it is a dangerous game that the US is currently excelling at and so if you wonder on why I care about another deal for 1.5 billion dollars, it is mainly because this paves the way for America when it defaults on their 18,000 billion loans, then what?

When we see people hide behind statements like ‘too big to fail‘, you should also consider the fallout when things go wrong. Consider what once happened to the Dutch SNS bank and is now happening to the Argentinian economy, both impacts were felt in large ways and they are not even anywhere near the scale of the debt the US and Japan have. And as we mentioned Japan, is that not the fear many brokers have? If we see the text from Moody’s (at https://www.moodys.com/research/Moodys-Japanese-RMBS-and-ABS-default-rate-declined-in-April–PR_302652).

Someone or something seems to be pushing Japan along, holding them on the safe side for now. Yet, this economic high-wire act is nowhere near done and it is a long walk to go for now. When we read “For CMBS deals, Moody’s outlook for the next 6-12 months is negative, as it will be difficult to refinance defaulted loans with high loan-to-value ratios“, so as refinance is now getting harder and harder, consider the US bonds. Part of the US debt is also the ‘Interest Expense on the Debt Outstanding’ (at http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm), this is set for 2014 (up to October) to be almost $355 billion dollars. This is just the interest. At Bloomberg we see “The government will reduce net sales by $250 billion from the $1.2 trillion of bills, notes and bonds issued in fiscal 2012 ended Sept. 30“, this is clearly incomplete, as there is not mention of WHEN these bonds mature, but the overall sell of bonds will hit the US at some point. If we consider the CNS headline “$2,472,542,000,000: Record Taxation Through August; Deficit Still $755B“, so taxes are coming in, they are not enough as the deficit is around 30%, now consider that the due interest is going to be 15%-20% (because two months are currently not known) of all collected taxation. When the bonds are due, how much larger will the debt become?
I have mentioned it many times, but now as we see the reaction of fear as Argentina defaults, we cannot continue without seeing the threat and fear of Japan from defaulting, which will clearly push the US over the edge of that abyss too.

Here is where the issue becomes the dangers we fear. We seem to always mention that those who talk the talk should be walking the walk too. This has not been done by large by many, so now we talk the walk but no one is really accountable, making for a massively dangerous situation. If you even consider thinking that there is no danger here, try calling a Syrian hospital by telephone and ask them how they are doing. It might open your eyes really quick.

If we are to walk the walk then Argentina will default and we have a new situation, yet the unnamed danger is that ‘some’ deal will find its way, which is great for the Argentinian people, yet it also impacts the cost of doing business for all the other players. Have you consider the costs that this will bring everyone else?

 

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July 30, 2014 · 10:10

Puppet on a string

It is 1967; Sandie Shaw wins the Eurovision Song festival with a happy go lucky song that even today could stay in the mind of those who hear the song. It is one of these timeless songs that can echo in our minds. She wins the day after Israel shows that Russian design requires an update, the final score, Russian MIG 0 versus Israeli Mirage 7 (a design they would later borrow to make the Mirage 5). Gaza gets occupied, Moshe Dayan becomes minister of defence and shows his opponents that one good eye is all one needs to have, which is a lesson his opponents would learn the hard way. It is the year that Benjamin Netanyahu joins the IDF (he currently has a non-IDF desk job).

Just who’s pulling the strings
I’m all tied up to you
But where’s it leading me to?

Elements of the song have become a reality!

The more you read about the issues in that year, the more the clear impression is that the pre-1967 borders were not just dangerous, returning to them might ‘inspire’ elements from neighbouring countries to take advantage of these borderlines to truly start a horror offensive against the state of Israel. How can we allow this with our eyes wide open? Was one failed attempt (Germany’s European tour 1939-1945) not enough?

If we take a look at the promise, stated to have been made by the USA (at http://news.nationalpost.com/2013/07/20/u-s-promised-israels-pre-1967-borders-as-basis-for-peace-negotiations-palestinian-officials-say/) to have been anything but unrealistic? How we saw the news last year on the ‘promise‘ of a peaceful tomorrow by State Secretary John Kerry. How could such a thought be entertained? The quote “Palestinian President Mahmoud Abbas agreed to resume peace talks with Israel only after U.S. Secretary of State John Kerry gave him a letter guaranteeing that the basis of the negotiations will be Israel’s pre-1967 borders, two senior Palestinian officials said Saturday“, it makes perfect sense that President Abbas wanted to talk, but with Palestine having absolutely ZERO control over Hamas, how could Israel see this in any way then the intent of them becoming the proverbial lamb that is getting guided to the slaughter table? In hindsight, we all see and many admit that Israel made mistakes in 1967, yet overall, if you have read my blogs, where I actually suggested that Sinai returns to Israeli hands, returning the Sinai to Egypt, was perhaps a mistake.

Please understand that this is NOT against Egypt, taking them out of the equation as Sinai escalates might actually be good for Egypt in the long run. Egypt is dealing with the Muslim Brotherhood, Al Qaeda (or ISIS as this extreme Islamic arm tends to call themselves at present) is growing its presence in the Sinai, becoming a possible threat, not just against Israel, but it will also leave both Jordan and Egypt more vulnerable. This would allow for the Al Qaeda/ISIS trench, giving them a direct route of Iraq, Syria, Jordan, Sinai and Egypt. Such a route would enable Hamas in ways nobody wants and the threat to both Qatar as well as Saudi Arabia would become direct and perhaps even imminent to some extent.

So, why is this scenario ignored? I am not stating that there should not be a cease fire in Gaza, but the elements in play, as well as several refusals from Hamas, the constant attacks into Israel with well over 1300 missiles in 2013 (I keep on mentioning this as the cost goes into the many millions), which also seems ignored. Consider this incomplete quote “Out of the 1.7 million Palestinians living in Gaza, 54% are food insecure including 428,000 children. Israel’s illegal blockade has led to a massive shortage of building materials….” really? So how are they paying for all these missiles? If there was only food going through them tunnels, Israel would not be all up in arms, would they?

So when we look at the CNN interview where we read this “CNN’s ‘New Day’ asked chief Palestinian negotiator Saeb Erakat what the purpose of the tunnels were. ‘I know the situation is so much complex — I am not saying I know the picture as a whole,’ he responded. But, he said, ‘Gaza is now like a burning building. We need to get the people out, and then we need to extinguish the fire, and then we sit down and talk’” (at http://edition.cnn.com/2014/07/28/world/meast/mideast-crisis/index.html?hpt=hp_inthenews)

So the question did not get answered. In my view, Hamas has never honoured a ceasefire and any ceasefire ‘agreed’ upon seems to have been to overcome moments of low amounts of ammunition. Many of the players connected to this game have had enough and the US seems to be running out of coin and economic options, as well as increasing threats from a village east of Munich (Moscow, in case you were wondering).

I have been making light of certain moments, it is not stress or fear. I am just hoping that meeting with Benjamin Netanyahu and Vladimir Putin where I tell them “pull my finger“, they will laugh and perhaps consider solutions out of the box, because as we all bicker over issues that are truly real, we seem to ignore the quickly growing sphere of influence ISIS seems to have, the events of the last two weeks clearly prove this. If we are to continue on any path where the State of Israel remains as a nation of commerce, as well as a future truce in that region, then we alas must accept that this cannot happen as long as Hamas remains. It is here where I personally disagree with the views of Lt. General Michael Flynn (Director of the DIA, at http://www.reuters.com/article/2014/07/27/us-mideast-gaza-usa-hamas-idUSKBN0FW01F20140727).

There is enough information that the People in Gaza are tired of Hamas, Hamas who indiscriminately executed innocent Palestinians, because they weren’t shouting anti-Israel slogans loud enough. If Hamas is gone, providing Israel is then willing to sit down with the Palestinians in Gaza, there is enough information to stop the growth of ISIS in that region, providing Egypt can stop the Muslim Brotherhood members from converting to ISIS members, because that would not be good for the people of Egypt, not for its economy or the leaders of Egypt for now. Flynn’s remarks were published and stated seem incomplete to me. It is unlikely that he would spill the beans in public, but we should consider not just the ISIS visibility as it has been happening, but the speed it happened at, with the materials they seem to control. There is enough information to consider additional dangerous extremism as they become the fuse for Jordan. After that Israel will be adjacent to two ISIS strongholds, forcing Israel clearly into a corner. This is why the approach to Hamas as the General states it seems wrong to me, if they wait, Israel will be caught in a virtual vice between Hamas and ISIS. The better course of action in my book is to deal with Hamas now, and allow the Palestinians in Gaza stop the growth of ISIS, which would be more than a great bargaining chip for Gaza, it might be a first piece of evidence that Gaza is no longer the threat it was in 1967. That might be a true first step in creating a lasting peace.
Too bad Hamas was not willing to consider peace.

Tik Tok!

 

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July 21, 2014 · 11:11

A political triptych

Whenever I see a trilogy I remember my first introduction to something in three parts. They were the works of Hieronymus Bosch. My earliest recollection of them was seeing his work with my own eyes when I was around 12 years old, making ‘triptych’ the most expensive word in my vocabulary in those early years. The events that have been at the centre of our lives lately seem to reflect the chaos we see in these famous triptychs.

First there is the issue I described earlier this week in ‘Here come the Drums!’. Russia has had an opportunity to throw ‘its’ image in several ways. Not because of me or because of the image it needs to have, but because of the image that it could have regardless of what the US claimed it to be. I was wrong! Whether Putin is as stupid as the US makes him out to be, or whether his advisers are working on self-serving needs is something only historians can decide upon. The fact that we see massive amounts of evidence that the local Donetsk population is giving the internet, the initial view (at http://www.youtube.com/watch?v=7fjpB5gw3iM) was nothing compared towards the anger we see clips where people are going through the debris (at http://www.youtube.com/watch?v=XGzcHd118mM). There were additional clips on how people were cheering on downing a plane and other issues of utter disrespect, which seems to have been removed from YouTube and seem too outrageous to add to this blog.

I should also revisit the comparison that I made with the question: ‘A lawyer walks into an insane asylum and hands an inmate a gun, who then kills the Warden of that place. Who is to blame?‘, I still feel it is relevant. The question was who supplied the BUK system, was it Russian, or was it captured? You see, in BOTH cases the international authorities should have been alerted to the dangers the area brought. It was the leaked conversation that angered many (including me). “Nikolay Kozitsin: That means they were carrying spies. They shouldn’t be f_cking flying. There is a war going on“, this baboon, or better stated, this baboon on Lysergic acid diethylamide is an army commander?

The fact that it was at an altitude of 30,000 feet should have been an indication that it could have been non-military. The events that follow, to the massive acts of disrespect and legal transgressions should have been a clear indicator that Russia should have stepped away from all this seems abundantly clear. Head my words, I am not stating that Russia had done anything wrong, the mere fact that it did not speak out loudly towards this transgression tarnishes them on (an undeserved) equal footing as Commander Nikolay Kozitsin. President Putin should have seen that one coming a mile away. This is nothing compared to the stupidity by Sky News shown on the Guardian (at http://www.theguardian.com/media/2014/jul/20/sky-news-presenter-brazier-mh17-luggage-crash), where Colin Brazier shows himself to be more ignorant then a first year Journalism student. His actions were met with outrage by fellow presenters Jacqui Oatley and Shelagh Fogarty. There is one correction that must be made, the initial information I had, was that the Data Flight Recorders (black boxes) were on route to Russia, whilst the information I currently have is that they had only recently been taken to Donetsk (at http://www.smh.com.au/world/mh17-black-boxes-under-rebel-watch-in-donetsk-according-to-separatist-leader-20140721-zv4lg.html). It seems only correct that I alter that part here.

There is another side to all this, as we see (at http://www.smh.com.au/world/john-kerry-says-us-has-enormous-amounts-of-evidence-linking-russia-with-mh17-disaster-20140721-zv4mz.html) that the MH17 disaster is linked to Russia, there are still questions that give worry to this. Yes, I agree that in my view Russia bares definite responsibility, not just by the possible SAM delivery (as the original is still in question), but the fact that the pro-Russian separatists were not stricken down in a verbal lashing from the Kremlin to give full cooperation, which is a much heavier transgression. Consider that these ‘pro-Russians’ would not listen, accept, or heed the words from Moscow; does that not make them simple terrorists? If that would be the case, how could Russia consider not distancing themselves from this disaster from the very first moment the events took place? If Russia is in league with these terrorists, then was the downing of MH17 not a clear act of war?

Is at the centre of it all?

Consider the financial situation the USA is currently facing, it is broke, which means it has no way to feed the war industry, which gives Moscow a distinctive advantage, if we accept that neither wants to go nuclear any day soon, then the acts of ‘sanctions’ is pretty much the biggest artillery the west can muster at present, even as we continue to see the results of acts within Donetsk. It is harder to tell whether I am right or wrong (I could be either), yet the inactions in Syria and now Eastern Ukraine seems to show a lack of directive from all NATO parties (not just the US). This all gives shape to the art on the left side of the Triptych.

The next issue is the one I also briefly touched upon, it is the escalating issues in Gaza, where it seems more and more clear that Israel has had enough of the threat Hamas has made over the last few years and the loss of support that Hamas is enjoying, as well as the US no longer having a clear and powerful hold over the region on an economic base is also a cause for Hamas to wonder whether their approach to issues would ever have worked to begin with. Now that Egypt is distancing itself more and more from Hamas, they are now hoping for a resolution through Qatar, where they seem to hope that the UN will be able to find options with the help of Sheikh Tamim bin Hamad Al Thani. The Sheik is a diplomatic force to be reckoned with, as a Sandhurst graduate, which is regarded as the finest military officer’s education in the world. The only issue that would remain is whether Hamas is in any way entitled to such distinctive representation. In one way, it might actually result in actual cease fire talks between Hamas and Israel; it is however also one of the final straws Hamas has left, if they decide to break that truce in any way, the results could not just end Hamas, it might actually end the options for any Palestinian Gaza. It could result in the biggest poker hand the Middle East has seen in a few decades. That and the option that progress could be in result will only emphasize the amounts of power lost to the US (who was utterly unable to make any headway here). It will also strengthen Qatarian influence over a larger portion of the Middle East, which could be exactly why Sheikh Tamim bin Hamad Al Thani might consider to assist in the matter as well as the motto he trained under ‘Serve to Lead‘. Achieving that might just leave the Academy General’s bursting with pride (the General who was leading the academy when the Sheik was a student there). If we go back to the Triptych, then this would be right side of the Triptych. So what is at the centre?

These two sides are linked to a much larger painting in the middle. It is without a doubt the economic sides we have seen overwhelming the left and the right side. It is not the economy of missile systems (which might be an implied reference), but it is the economic powers that are too scared to lose it all in a war, which is of course the smallest of reasons to consider war over, but it is a factor none the less. More important, it is the diminished economic power of the US that is centre on all this. It would be unfair to just refer to the US here, but the bulk of the EEC is in a worse shape than the US currently is, so that is why the US is still the central element in all this. Their inability to get control of their overspending is a massive reason for the ‘blame’ towards the US. But let us not forget that the UK is not without blame either. In its current shape (especially the massive debt) the UK is also lacking in power to set for the ‘demanding’ (or better stated ‘intensely requesting’) image that should be given towards Eastern Ukraine and Israel/Hamas in these matters. Even if we give the proper weight to the Guardian article on the GDP of the United Kingdom (at http://www.theguardian.com/business/2014/jul/20/gdp-surpass-pre-financial-crisis-level), the headline ‘GDP to surpass pre-financial crisis levels‘ is just an indicator and even though I admit that the UK is still getting back on the horse, the issue ‘ignored’ for now is that Gross Domestic Product is no real indicator of better times, only for now that this seems to indicate good times for the ‘rich’. People in the UK are still on massive levels of debt and that is not likely to change any day soon. There is still a shortage on jobs and those who do have a job are inclined to go along with outrageous amounts of legalised slave labour. Freedom comes at a price, or better stated, when big business rules (or massively influences) the actions of government, we see an unbalanced view on life and every inch they do not claim will come at another cost.

Here we see the elements of a triptych by Hieronymus Bosch. Either of the famous three of his triptychs could apply to the chaotic mess we are all facing. In the end there is enough imagery to debate which one is the best depiction. The economic sector would argue that we are in the triptych ‘The Garden of Earthly Delights‘, whilst the people under the pressures of this economy will counter that their fate is shown by the triptych ‘The Last Judgment‘. The view also reinforces the views outsiders have towards the entire economy. Partaking in it will always be better than watching the result on the outside looking in, because those on the outside will never get to partake in the game at all.

2014 might end up being a very decisive year for many of us!

 

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July 18, 2014 · 10:55

Here come the drums!

Today is a day for mourning. Not just for the victims and the family of victims, but for all our souls. I am not stating that we are going towards WW3 at present, which would be wrong and very inconsiderate; it would also be incorrect as far as I can tell at present.
I got the news very early this morning; it shook me up at first. My first question was whether the press would suddenly call it a ‘plane shot down‘. I was not aware of the full facts, and the indiscriminate acts by the Murdoch group in regards to MH370 gave me that worry. Yet, there it came, the message that it was shot down. This time, it was indeed an act of violence that brought the plane down.

This all made me consider and offering you the following issue: ‘A lawyer walks into an insane asylum and hands an inmate a gun, who then kills the Warden of that place. Who is to blame?‘

This is not some ‘proposed’ issue; this is what seems to be happening at this very moment. Who gave these separatists access to a multimillion dollar system that can down a plane from 30,000 feet? This is not a stinger or some RPG on a shoulder. This is a system that requires a sizeable missile, computers, radar, guidance as well as the people to man and successfully fire this system. Hamas does not have access to anything like that, so where did these separatists get them? Hamas has had access to arm dealers for decades; they never got access to this level of hardware (or the people to operate it).

This has so far not been on the minds of most journalists, who are still hitting the emotion snare on the harp of agony, which is fair enough, as we see this happen (whether valid or not) all the time. The question is when should we be asking these questions? I understand that we need to wait for answers and facts to arrive, yet the serious and valid question should be asked as immediate as possible so we can focus on the actual answers. I was told 4 hours ago (just before 06:00 local time) that the black box was already on route to Russia. So was this plane shot down over Russia or Ukraine? If the plane was shot down over Ukraine, why is it on route to Russia? It might be for a very valid reason, I just wonder why it was not on route to Kiev if it was shot down over Ukraine.

Perhaps my question is not that correct either, but they are the questions that came to my mind at 05:00 and 06:00 this morning.

Is this just it? Is there more?

That is also on the forefront of my mind. Do not worry; this is not some conspiracy theory moment! This is all happening at same time as we see ground forces enter Gaza, Israel has had enough of Hamas and is now cleaning house in that area. The support Cairo gave Israel, or better stated, the support it is NOT willing to give Hamas (which is not the same) is opening a few doors. Consider the issues we had seen with Syria, Ukraine (except for Crimea) and a few other places, now we get these two events. It seems to me that parties are no longer heading any words coming from the US State Department and its ambassadors, or its secretary of State. They just hide behind even more ‘sanctions’. How is that working for you in regards to Cuba Mr President? The fact that a passenger liner gets shot down like this, that Gaza is now entered by Israel (which seems valid to me after 2000 missile strikes), gives more and more the impression that the US is no longer heeded in any advice. In my view, a nation with minus 18,000 billion in their treasury is taken less seriously then one with a mighty force that could be send out anywhere if they had actual coin in the coffers. I say (in Game of Throne style) ‘The master of the coin has a wee bit of explaining to do!’

Are they all consequences of the US no longer having the ‘balls’ (read filled bank account) to do anything against these transgressions?
It does leave several nations (those with citizens on the MH17) a few things to consider. What will Russia do? If Russia wants to be regarded as the ‘shiny knight’ on its Russian Steed, it would have to come down on these separatists really hard. If they did, the balance of power would definitely shift in many ways. The White House becomes the talker who does not act and it could make Russia the acting party who does not present. Is this the events as they will truly play out?

No matter what happens in the end, we all have questions at present. What is the question in regards to MH17 that is on your mind? It does not matter whether you have family or countrymen on this flight. Today we are witnessing a group of (militants or terrorists) take out a civilian plane as casual as eating pancakes. I hope we hear the serious questions from several sides before the governments start playing politics (as they have to). In the end we all want answers, the families of the victims above all.

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June 23, 2014 · 11:45

ISIS is coming to town!

Many have seen the news. Iraq is facing another brawl between the Sunni and Shiite. I do not proclaim any side, or even to know and comprehend the difference between the two beyond a limited and basic level. Is it required? There is an interesting article on it all in the Huffington Post (at http://www.huffingtonpost.com/howard-barbanel/the-current-incarnation-isis_b_5509461.html), whether this is something you can connect to is up to you. It is the last paragraph that gives me pause and even some worry.

“Unfortunately, what’s needed is for the West to man-up and send in a multi-national force (Americans, Brits, French, Germans, etc.) and squash ISIS (which has ambitions of spreading their Islamic revolution to London and New York). It won’t take many planes or drones. ISIS has no air force. It won’t even take many troops to confront the several thousand ISIS fighters. What it will take is will power and if there’s absence of that we will be left only with the words of the 18th Century Irish philosopher Edmund Burke: ‘All that is necessary for the triumph of evil is that good men do nothing.‘”

First of all, the US has no intent of getting involved (at present), more important should they? Remember the old issue when between the 2nd and the 4th of August 1990, Iraq took over Kuwait? It was condemned and after a while the US instigated Desert Storm and it was in that time between 17th January and 28th February 1991 that Sadam Hussein was removed from Kuwait. It was after this when at some point Bill O’Reilly made mention that at this stage, the hold of Sadam Hussein was weak and the Iraqi people could have overthrown their government if they truly wanted freedom. He was correct in a sense, but was he correct overall? I did not consider that part until this week. You see, the issues around Operation Iraqi Freedom (a dubious choice of name to some extent), was that this situation was never completely and correctly resolved (I admit that my use of correct is debatable). So as the US established democratic elections and formation of new Shia led government, we should wonder, even though the Shiite is in a massive majority, how the Sunni’s would react. Last week we saw the escalation of that sentiment in all its brutality. Giving a lot more weight to the consideration Bill O’Reilly left me with when he made the initial statement.

I needed to get another view, so I looked and I found this statistic Shia Muslims constitute 10-20% of the world’s Muslim population and 38% of the Middle East’s entire population, So that is a sizeable chunk, another gave me: “Most Muslims are of two denominations: Sunni (75 – 90%) or Shia (10 – 20%)“, which makes me wonder at first, yet the view from Professor Sue Hullett gave me: “Let me review, while Shia Islam makes up only 10%-20% of the world’s Muslim population, Iraq has a Shia majority (between 60%-65%), but had a Sunni controlled government under Saddam Hussein“, As she is the Distinguished Professor and Chair of Political Science at Knox College, her numbers should be regarded as reliable and they are in line with other numbers I found.

This leaves me with a much clearer picture that we are facing a change where Iraq goes back into the shape it had under Sadam Hussein. More important, the Shiite majority seems to be unwilling to fight the Sunni’s in this matter. Linked to this is a second quote from the Huffington Post “Tens of thousands of Iraqi troops just ran away, abandoned their equipment and abdicated their duty. Had even a fraction of them stood and fought, ISIS probably could have been thwarted.”

This is exactly in the light Bill O’Reilly stated several years ago. So is this a case of ‘Barbarians’ attacking ‘Pacifists’? More important, is it the job of the USA to just intervene every time? The issue of ‘deserting’ Shiite’s, for whatever reason, gives clear indication that not only was the exit strategy poorly chosen, an exit strategy should not have been considered. In other light, if the Iraqi’s are not willing to fight for their country and resources, what rights are they enabling themselves with?

Is there a solution?

I am not sure if there is. I have my doubts whether 300 advisors will help when troops run away leaving plenty of resources behind for ISIS, the fact that ISIS was active in Syria and is now armed to the teeth and entering Iraq should also give way to additional questions. The strategic position of ISIS at the borders of Iraq, Syria AND Jordan should also be seen as a dangerous escalation. The destabilisation of Jordan (if made threats are accurate), will push millions of refugees in all kinds of direction; none of them could be seen as a positive one. This is at the heart of the strategy of ISIS, which with my apology for a lack of better phrasing is actually brilliant. They have area control to move large amounts of goods and the US is not clear on what to do and where to do it. If they openly start an opposition war, whether from Iraq or not, they will derail whatever achievements the US state department had made with Iran, this will open up more options for Syrian escalation and the one almost ‘stable’ part there (Jordan), will now be in direct threat as well as its Royal family. Unless King Abdullah II of Jordan finds an acceptable alliance and added support, it runs the risk of destabilising really fast. Now we have ourselves a true Clambake as ISIS ends up with resources at the bulk of the Israeli borders. There is then a direct threat to Eilat (via Jordan) as well as the option to enter the Sinai with from there a path to Hamas. Israel could find themselves in a direct war on two fronts whilst having only limited options to reflect the invader ISIS without direct consent of Jordan, which ties the hands of Israel, with likely direct threats to the cities of Eilat, Ashkelon and Beer Sheva, which puts Israel in clear and present danger of having to instigate a massive offensive. This changes the Sinai into a powder keg and whilst there is no outspoken hostility against ISIS by Egypt, even if it was, Egypt will not allow an increased presence of Israel in the Sinai, making this “no man’s land” a good haven for ISIS, would they proceed in this direction.

ISIS is there for a massive danger for overall stability. That part is called to order even stronger when we consider the headline of the Financial Times ‘Diverse funding and strong accounting give Isis unparalleled wealth‘, by Sam Jones, Defence and Security Editor yesterday afternoon. This gives way to several issues. Not only are they a threat, they are a well-funded threat, which means that they could support Hamas with materials allowing for even more attacks on Israel, giving us an easy escalating situation. I reckon my initial advice for Israel to take back the Sinai in 2012 would have been the best course of action. Not in any anti-Egyptian way, but considering the pressures President Sisi is dealing with at present, having to deal with ISIS in his back yard might have been the one part he preferred not to deal with.

It would also have limited several explorations by ISIS, yet that did not happen, which means that unless a direct solution for Iraq can be found, we will see escalations all over the Middle East. If ISIS does get a hold of Iraq, the US will be forced into a financial and military corner, requiring a solution in a multinational way and very likely in several nations. Will that ever be an acceptable option?

In my mind, the most direct meed would not be Iraq, but Jordan. It is dealing with millions of refugee’s and a dwindling amount of resources. You should by now realise that until Iraqi’s pick up arms (instead of fleeing), that theatre could be lost. If we accept the roman principle of war (the installation of defences against enemy retaliation), then adding strength to the Kingdom of Jordan, as well as a massive increase of Humanitarian aid will be a first priority. It makes Israel less of a target and it limits the movement of ISIS in regards to Syria and Iraq. Yet in the end, until an offensive is launched, ISIS cannot be dealt with and that is something that needs to be done, the question remains: ‘how to do it?’

 

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June 19, 2014 · 21:22

Concerning the Commonwealth!

There is no easy news. The Commonwealth is having several issues that are not easily solved. There is always blame, but who to blame and more important, will it get us anywhere to begin with? I also believe that the Commonwealth has its share of solutions, but in that regard we will have to make some drastic changes. Some will be good, many will not be good and a lot of them will have to be different.

It is the last one that is likely the strongest salvation we might hope for, but we can no longer think the way we are, as we currently end up planning to go nowhere.

First of all, one member will need to step up to the plate and the others must protect this part. They started being regarded as a simple land, this land became a colony and later part of what would be known as the British Empire. It became independent and it is now a Commonwealth nation. Now, India must step up to the plate and become a Commonwealth leader. We (Australia, Canada, New Zealand and United Kingdom) must stand firmly and strongly next to India.

India has basically become the world leader in generic pharmacy and many are so eager to take up the Trans Pacific Partnership that we ignore the part that this US and Japanese conclave is not just about ‘trade‘ or ‘fairness‘, the indications are that it will give even more power to the US companies. A level of power they should not have to this degree.

They were complacent; they were lazy and became the facilitator for flaccid economists (yes, that was a Viagra joke).

If we accept a Canadian source, we see the following: “One proposed TPP provision would require governments to grant new 20-year patents for modifications of existing medicines, such as a new forms, uses or methods, even without improvement of therapeutic efficacy for patients. Another provision would make it more expensive and cumbersome to challenge undeserved or invalid patents; and yet another would add additional years to a patent term to compensate for administrative processes. Taken together, these and other provisions will add up to more years of high-priced medicines at the expense of people needing treatment, who then must wait longer for access to affordable generics. Meanwhile, provisions in the proposed investment chapter would give pharmaceutical companies the right to sue governments for instituting any regulation that reduces their expected profits, using private tribunals that circumvent a country’s judicial process.” (at http://www.msf.ca/en/article/negotiators-must-fix-most-harmful-trade-pact-ever-access-medicines).

This is not what we signed up for in any way shape or form (nor should we ever). It had been stated in several sources that Australia was one of the least objecting partners. The fact that this would be done and through this ensure the consequence that a large part of the Commonwealth will then have another decade of expensive medication to look forward to is just too absurd. when we read the additional quote “U.S. pharmaceutical company Eli Lilly is using similar provisions in NAFTA to demand $100 million from the Canadian government for invalidating one of its patents, claiming, among other things, that the company’s expected profits were “expropriated” when the patent was overturned“, we see a pattern where the use of such a partnership is not a partnership at all, it feels more that America is applying republican dictatorship, through arranged courts in order to thwart almost two decades of laziness and stupidity. Them overspending their treasury by well over 17 trillion is not helping them either and is at the centre of the current push we see.

India is proving slowly to be the leading authority on generic medication, even now in the last two years we see players like Kroger, Axium, Pfizer and Wyeth in multi-billion dollar mergers. They are setting up shop to have their own corners, which will grant them stability and income for the next decade. Guess what! We cannot afford that. The UK NHS is in shambles, healthcare all over Europe is unaffordable and the other Commonwealth nations see the cost of medication go up and up and up. These costs forced upon governments are the new way to get the maximum revenue, whilst in the end not being taxed on it (or for the ultimate minimum). India as a Commonwealth leader in generic medication can step up to the plate. We will not go to India, no, it seems that under these conditions India comes to the UK, Australia and Canada to build their places for generic medication to be produced. India would become a leader here. I wonder if President Pranab Mukherjee had ever envisioned that, to visit the other nations, including the UK as a leader, paving the way for a solution to the other heads of states of the Commonwealth.

If you think that this is ludicrous, then think again. In the Independent we see at http://www.independent.co.uk/news/uk/politics/government-accused-of-losing-grip-on-nhs-as-58-failing-trusts-now-have-241m-debt-9544181.html the following headline “Government accused of ‘losing grip on NHS’ as 58 failing trusts now have £241m debt“. Australia is feeling the pinch of healthcare hard and Canadian healthcare will soon be a sizeable chunk of a 2.2 trillion dollar debt. This must change!

We need to pull our resources. We need to think of other ways. Medication from India is only a first step. How about the option for healthcare graduates to work off their debts in a few years overseas in the UK or Canada? They’ll have a place to live, some income and over a period of 5-10 years (depending on the degree) their debt is settled. These are but a few of the options we can resort to. The old ways are not working and the few that do are drowned into costs of a faltering IT system. We need to group ourselves together and build a new system on different scopes. The old way has not worked and the more we delay the deeper the debt becomes and the less solvable the problem becomes.

This is no longer Labour versus Conservatives; this is now finding a way to avoid deaths through inaction. I agree that simply starting something new is not the way to go, the Labour IT systems of the NHS have proven that ten billion pound invoice, and yet doing nothing is another non-option. The heads of the Commonwealth must come together and find surpluses on one side to stop drainage in other sides. We are one commonwealth and we must save us! From there we will have the stability to come to the European aide, especially with affordable medication.

This side was ignored by the USA as the cash was flowing so nicely. Guess what, we are all broke and we need to find WORKABLE alternatives. The ones we claim to have at present do not work!

Let me also take a step back. This is not an anti-American thing, they are welcome to be part of this (even as a non-Commonwealth nation) and the issue is that they have been blocking affordable solutions through the FDA for a long time. What was good for Canadian was apparently not good enough for Americans and cheaper medication. The information from RxRights.org stated: “Threats to Economic Creativity and Theft of Intellectual Property Act of 2011 (PROTECT IP Act). This new act moves far beyond COICA’s blacklist of pharmacy websites. It would categorize all non-U.S. based online pharmacies as a risk to public health. It would require that Internet service providers and search engines block these sites that credit card companies stop their payments. Even worse, under this new law, Canadian and international pharmacies would be prohibited from defending themselves against those who shut them down“. This situation is even more ridiculous as this is instigated by a president claiming to bring ‘affordable‘ healthcare. If that were true, then why not let people find the cheapest option? Is a Canadian less than an American? No, it is all about a Democratic party with minus 17 trillion and they are firmly in the pockets of big pharmacy! That is the part and the Commonwealth cannot afford this shallow minded greed based approach. We must entertain the best option for the Commonwealth. As General Motors left Australia for cheaper options in China, so we must find our cheaper options in India and the TPP will not help us here. Signing it would be a massive mistake. By the way, all them Americans spamming my email for cheap Viagra was legal? Interesting double standard the FDA has.

We can see more in regards to Indian patents (at http://timesofindia.indiatimes.com/home/stoi/all-that-matters/Changes-to-Indias-patent-law-will-impact-prices-of-life-saving-drugs/articleshow/32519848.cms), of course, as it is the Indian Times, it would be all in favour of India, but are the facts incorrect? That part is in debate on several issues. One question that has not been answered over a term of at least two years is “Access to Medicines – Will the Trans-Pacific Partnership FTA allow governments to produce and/or obtain affordable, generic medications for sick people?”

That is not just the question which is not answered; it is one if the questions that seem to be actively avoided whilst the TPP is continued behind closed doors. The response from Doctors without borders is “Governments have a responsibility to ensure that public health interests are not trampled by commercial interests, and must resist pressures to erode hard-fought legal safeguards for public health that represent a lifeline for people in developing countries.”

This is at the heart of the issues for the Commonwealth, because if these steps stop affordable medication, then there will be no healthcare at all, the Commonwealth nations will be broke as they are decimated through age and sickness, after that what will be left of Western Europe?

It is only a first step; if we look at the NHS, then staffing and expertise are also a worry, which is by the way a worry in many Commonwealth Nations. Most of these nations have well over 5% unemployed; can some not be re-schooled in the healthcare sector? In the UK many IT trained staff are without a job, can they not help rebuild the NHS IT systems? Too many issues that are overlapping and someone threw away 10 billion. It is time to rewrite the tactical guide and start building a solution that will work. Sitting at home will not help anyone, not even one’s self.

 

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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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