I work in a building owned by Mori Trust. There are some 37 floors and the elevators are divided in groups of 4 to serve differnt floor groups. However, I susspect that Mori Trust turn off elevators to save costs at the expense of the tenant's employees.
I am a smoker.
Typically in a regular day I go up and down 10 times.
Each journey I have to wait a minimum of 30 seconds for an elevator.(Often much longer)
That's at least 10 minutes a day.
21 day business month that is 210 minutes a month
Allowing for an 11 month year to take into account public holidays and vacation thats a staggering 2310 minutes a year or 38 1/2 hours.
I have worked in this building for 7 years.
Therefore I have spent 269 1/2 hours waiting for Mori Trust elevators since I have been here. Or if you prefer 11 1/4 days of my life sacrificed to Mori Trust to satisfy their insatiable desire for cost savings at the personal expense of people using the building.
Is this really serving your tenants?
Friday, October 30, 2009
Review what we teach at Universities.
We need to review what we teach at universities, most especially in economics and political science. We are still teaching students about the Reagan/Thatcher era as if it is a role model to follow.
Thatcher for example had one goal in mind. Crush the unions! "If you cant make products at a competitive price we will close you down and sell you for a pound"
What the silly old bat (who now also has Alzheimers, what does that tell you about this era?) didn't realize was that without any domestic manufacturing and industry the value of sterling goes down and therefore the cost of imports from overseas goes up. Therefore if the cost of goods of domestic UK produced goods is more than overseas prices but not by a ridiculous amount, it is good to keep UK industries running. It prevents jobs from going overseas. Citizens in UK have always paid through the nose for everything. The governments have never allowed low interest rates for fear of the average man in the street going on a spending spree on credit.
Typical example, a car that would cost US$25,000 will cost GBP25,000 in England or possibly more. When the true exchange rate adjusted price including shipping and duties would be less.
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Thatcher for example had one goal in mind. Crush the unions! "If you cant make products at a competitive price we will close you down and sell you for a pound"
What the silly old bat (who now also has Alzheimers, what does that tell you about this era?) didn't realize was that without any domestic manufacturing and industry the value of sterling goes down and therefore the cost of imports from overseas goes up. Therefore if the cost of goods of domestic UK produced goods is more than overseas prices but not by a ridiculous amount, it is good to keep UK industries running. It prevents jobs from going overseas. Citizens in UK have always paid through the nose for everything. The governments have never allowed low interest rates for fear of the average man in the street going on a spending spree on credit.
Typical example, a car that would cost US$25,000 will cost GBP25,000 in England or possibly more. When the true exchange rate adjusted price including shipping and duties would be less.
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Silly old bat !
Thursday, October 29, 2009
Big Government. Its the end. Trim the fat.
The age of big government is over! Bureaucratic, wasteful, expensive.
Why do we need 645 MP's? Less than 100 will do the job. In this day of internet age we can allow the country to vote every day on open issues. That way the government is truly representing the people. The government web page will have a list of issues that are open to voting every day and the eligible voters will have a secure ID to prove their identity. The number of people serving ministers will also be slimmed down saving costs. Government can be thin, lean and mean and still get the job done. Instead of a parliament filled with ministers we would have an expanded cabinet of say up to 50 ministers, and a further 50 ministers who would be responsible in ratifying decisions made by the populace and the cabinet like a mini house of lords.
Politicians would be elected still by constituencies but more emphasis would be on efficiency and a small central government for national issues. Local government would also be shaken up and made to do more with less.
I am hoping for additional input and ideas on this matter also.
Why do we need 645 MP's? Less than 100 will do the job. In this day of internet age we can allow the country to vote every day on open issues. That way the government is truly representing the people. The government web page will have a list of issues that are open to voting every day and the eligible voters will have a secure ID to prove their identity. The number of people serving ministers will also be slimmed down saving costs. Government can be thin, lean and mean and still get the job done. Instead of a parliament filled with ministers we would have an expanded cabinet of say up to 50 ministers, and a further 50 ministers who would be responsible in ratifying decisions made by the populace and the cabinet like a mini house of lords.
Politicians would be elected still by constituencies but more emphasis would be on efficiency and a small central government for national issues. Local government would also be shaken up and made to do more with less.
I am hoping for additional input and ideas on this matter also.
The credit crisis (Financial products that should never have been invented)
In the past 10 years or longer we have seen growth in a special type of derivative that strips the credit rating of one asset so that it can be attached to another.
For many many years credit rating agencies such as Standard and Poors and Moodies have done a good job of fairly assessing banks and companies, their business plans and strategies and their debt burden. Culminating in a rating from AAA the best possible to non rateable junk bond status. As the result the cost of borrowing for the companies is cheapest for a triple A rated company and most expensive for a low on non rated company. Basic banking 101.
With a credit derivative product it is possible in theory to take a junk bond, mix it with some medium quality bonds and put a triple A label on it. Effectively circumventing the credit rating agencies. Selling mutton as lamb. Although just tongue in cheek scenarios the following explains the reason for their creation and the stupidity of the product.
1. A bunch of old money guys are holding some bonds they bought at the recommendation of their broker or investment bank. The company suffers a downgrade due to bad management or missed contracts or any number of business reasons. Therefore the assets the old money guys had purchased is no longer worth anywhere near what they paid for it and will never yield the amount that they expected to receive. Therefore these old money guys (From very famous and powerful families), go back to their investment bank and tell them to fix the problem and get their money back. The investment bank calls on its financial engineering team to skew the payoff from the bonds. So.. The investment bank buys back the bonds at face value, puts a few other high quality bonds in a so called basket. Estimates the payoff, sets a new coupon rate and either gives its own credit rating or issues credit default swaps based on a 3rd party to improve the default characteristics of the basket.
Then the investment bank lets call them Weidman, issues this new basket of bonds and attaches their own credit rating lets say single A to the issue. That way they can sell junk to the market at the price of gold because it has this "Credit derivative" attached. The financial engineers however miscalculated the VAR or value at risk of these products thinking that diluting the risk in this way for a fixed fee would be fine.
No, just step outside the box and think about it. A piece of shit is still a piece of shit even with a new coat of paint. The device seemed to become so popular that everyone wanted in on the game to improve the notional value of their holdings.
2. In layman terms.
Joe owns a one pump garage on a dusty lonely stretch of route 66. He has worked there and lived there alone since his mother and father passed away. He gets a few customers a week, just enough to keep his head above water and not much else.
Then one day the suits from Weidman pull up in their limo at Joe's garage. They fill their tank and start up a conversation with him. They ask Joe how long he has been there. What a fine and prosperous garage he owns. This country needs more businessmen like you Joe. They ask Joe how long it has been since he has taken a holiday. Joe says he has not had the chance as there is no one to run the business.
So they ask him if he has a destination in mind, somewhere he would really like to visit. Yes, he answers my daddy always used to say Vegas was like paradise on earth So i think I would like to go there.
The suits convince Joe that his garage is worth at least 1 mio dollars and that they can borrow $2mio against it and future profits and sell bonds protected by a credit default swap by a big company and everything would be fine. Joe would be able to take a holiday and maybe even make some improvements to the business. Of course the cost of this financial engineering would be $1mio which Joe would have to pay Weidburg from the $2mio he is going to borrow. After agreeing, the suits get back in their car and tell Joe they will be back in a month. Sure enough they come back with a contract and documents that are an inch thick. Joe signs in all the places they circle. They guys from Weidman get back in the car and tell joe the issue should be made in a few weeks time and he should have his $1mio net in about 6 weeks. Sure enough, 6 weeks later Joe gets a cheque from Weidman for $1mio. Joe packs his bag gets in his truck and sets off for Vegas.
When he gets there he finds a hotel checks into a nice room and goes downstairs to buy some chips with his Weidman draft. Joe didn't know much about casinos but he had seen them on TV. So he took his $1mio worth of chips and put it all on black on the roulette table. Well of course it came up red. Joe looses everything including his garage and truck, the bonds (not just Joe's part but another 1,000 people like him) default. The buyers of the repackaged bonds try to cash in on the default with the credit derivative event attached to the basket. However, the amount of default swap payout is not enough to cover the loss of the investment, just the difference in bond value between one credit level and another (typically a downgrade by one step).
So Joe looses everything. New investors loose almost everything. Weidman get rich.
Weidman salesmen get multi-million dollar bonuses and go on to prove to the world that black is red and whats more red is more valuable than black.
For many many years credit rating agencies such as Standard and Poors and Moodies have done a good job of fairly assessing banks and companies, their business plans and strategies and their debt burden. Culminating in a rating from AAA the best possible to non rateable junk bond status. As the result the cost of borrowing for the companies is cheapest for a triple A rated company and most expensive for a low on non rated company. Basic banking 101.
With a credit derivative product it is possible in theory to take a junk bond, mix it with some medium quality bonds and put a triple A label on it. Effectively circumventing the credit rating agencies. Selling mutton as lamb. Although just tongue in cheek scenarios the following explains the reason for their creation and the stupidity of the product.
1. A bunch of old money guys are holding some bonds they bought at the recommendation of their broker or investment bank. The company suffers a downgrade due to bad management or missed contracts or any number of business reasons. Therefore the assets the old money guys had purchased is no longer worth anywhere near what they paid for it and will never yield the amount that they expected to receive. Therefore these old money guys (From very famous and powerful families), go back to their investment bank and tell them to fix the problem and get their money back. The investment bank calls on its financial engineering team to skew the payoff from the bonds. So.. The investment bank buys back the bonds at face value, puts a few other high quality bonds in a so called basket. Estimates the payoff, sets a new coupon rate and either gives its own credit rating or issues credit default swaps based on a 3rd party to improve the default characteristics of the basket.
Then the investment bank lets call them Weidman, issues this new basket of bonds and attaches their own credit rating lets say single A to the issue. That way they can sell junk to the market at the price of gold because it has this "Credit derivative" attached. The financial engineers however miscalculated the VAR or value at risk of these products thinking that diluting the risk in this way for a fixed fee would be fine.
No, just step outside the box and think about it. A piece of shit is still a piece of shit even with a new coat of paint. The device seemed to become so popular that everyone wanted in on the game to improve the notional value of their holdings.
2. In layman terms.
Joe owns a one pump garage on a dusty lonely stretch of route 66. He has worked there and lived there alone since his mother and father passed away. He gets a few customers a week, just enough to keep his head above water and not much else.
Then one day the suits from Weidman pull up in their limo at Joe's garage. They fill their tank and start up a conversation with him. They ask Joe how long he has been there. What a fine and prosperous garage he owns. This country needs more businessmen like you Joe. They ask Joe how long it has been since he has taken a holiday. Joe says he has not had the chance as there is no one to run the business.
So they ask him if he has a destination in mind, somewhere he would really like to visit. Yes, he answers my daddy always used to say Vegas was like paradise on earth So i think I would like to go there.
The suits convince Joe that his garage is worth at least 1 mio dollars and that they can borrow $2mio against it and future profits and sell bonds protected by a credit default swap by a big company and everything would be fine. Joe would be able to take a holiday and maybe even make some improvements to the business. Of course the cost of this financial engineering would be $1mio which Joe would have to pay Weidburg from the $2mio he is going to borrow. After agreeing, the suits get back in their car and tell Joe they will be back in a month. Sure enough they come back with a contract and documents that are an inch thick. Joe signs in all the places they circle. They guys from Weidman get back in the car and tell joe the issue should be made in a few weeks time and he should have his $1mio net in about 6 weeks. Sure enough, 6 weeks later Joe gets a cheque from Weidman for $1mio. Joe packs his bag gets in his truck and sets off for Vegas.
When he gets there he finds a hotel checks into a nice room and goes downstairs to buy some chips with his Weidman draft. Joe didn't know much about casinos but he had seen them on TV. So he took his $1mio worth of chips and put it all on black on the roulette table. Well of course it came up red. Joe looses everything including his garage and truck, the bonds (not just Joe's part but another 1,000 people like him) default. The buyers of the repackaged bonds try to cash in on the default with the credit derivative event attached to the basket. However, the amount of default swap payout is not enough to cover the loss of the investment, just the difference in bond value between one credit level and another (typically a downgrade by one step).
So Joe looses everything. New investors loose almost everything. Weidman get rich.
Weidman salesmen get multi-million dollar bonuses and go on to prove to the world that black is red and whats more red is more valuable than black.
Backing England, sell the Pound.
One of the first things I would do in government is to create a new currency. There would be no exchange rate between pounds sterling for example and the new currency.
Indeed it would be illegal and outlawed with severe penalties if any money changers started up. The average persons savings would be exchanged through the central bank at parity. Anyone with other assets will have their taxes checked and if they have already paid tax on the amount then they also would be allowed exchange at parity via the central banks.
However, those with cash or other assets that have been gotten without creating value will have penalty exchange rates which in extreme cases could be 100 - 1. Therefore the country will have reclaimed much of the stolen gains for the benefit of all its citizens.
Now I know this is not a perfect idea yet, but the destruction of the old currency is quite necessary I feel. I would like to invite anyone to comment an make additional ideas and modifications that could make this a workable vehicle for change.
Indeed it would be illegal and outlawed with severe penalties if any money changers started up. The average persons savings would be exchanged through the central bank at parity. Anyone with other assets will have their taxes checked and if they have already paid tax on the amount then they also would be allowed exchange at parity via the central banks.
However, those with cash or other assets that have been gotten without creating value will have penalty exchange rates which in extreme cases could be 100 - 1. Therefore the country will have reclaimed much of the stolen gains for the benefit of all its citizens.
Now I know this is not a perfect idea yet, but the destruction of the old currency is quite necessary I feel. I would like to invite anyone to comment an make additional ideas and modifications that could make this a workable vehicle for change.
Wednesday, October 28, 2009
Complaints about Japan
The country I have lived in for some 23 odd years is not without its own niggles and problems.
Tokyo's overcrowded subway system runs on time and is safe, cheap and convenient. The Japanese race have a perceived politeness around the world and it is true, but a certain amount of it is automatic. Some people are "mewaku kakeru hito" in other words people who cause problems for others.
However, those riders on Tokyo subway cars have a very annoying habit of staying in the seat until the train is in the station where they want to get off and has fully stopped. Then they get up and go towards the door. Passengers waiting on the platform are already rushing into the car and this causes a "cluster fuck" of people pushing and shoving to get on or off the train.
I just wish they could be polite enough to get up from their seat and wait by the doors 20 seconds before the train enters the station. It seems a simple concept. I cannot understand why the Japanese just don't get it.
Tokyo's overcrowded subway system runs on time and is safe, cheap and convenient. The Japanese race have a perceived politeness around the world and it is true, but a certain amount of it is automatic. Some people are "mewaku kakeru hito" in other words people who cause problems for others.
However, those riders on Tokyo subway cars have a very annoying habit of staying in the seat until the train is in the station where they want to get off and has fully stopped. Then they get up and go towards the door. Passengers waiting on the platform are already rushing into the car and this causes a "cluster fuck" of people pushing and shoving to get on or off the train.
I just wish they could be polite enough to get up from their seat and wait by the doors 20 seconds before the train enters the station. It seems a simple concept. I cannot understand why the Japanese just don't get it.
Investment. Good or bad?
No matter which way you look at money and interest rates, any investor who lends money to a company or firm is looking for a free ride. Because he or she has excess money, too much money the investor is expecting to get more free money without working, without creating any value. In effect investors are "Value Destroyers" rather than "Value Creators" (Most people who work can be called "Value Creators").
Indeed in the UK and other countries in the western world the media and popular press are often heard to condemn the social welfare system for paying people who do not want to work. Well, yes the system needs to be modified to encourage people to study or retrain. That is agreed. However, what is the difference between the investor and the "dole" recipient? Nothing, they both get paid without working !
Although a complete review and rebuild of the banking system is required, while there is investment and money without pay, the investor must be prepared to loose all of the invested money in event of a default and not try and modify his potential loss with derivative products. The real risk is the full value of the investment, any derivative sold by a financial engineer or banker that costs less than the investment to protect is a confidence trick and merely passing on the risk to another or other parties at parity with the original investment or even leveraged so that there is more risk than in the original investment.
Looking at the collapse of US mortgage quasi government agencies FannieMae and FreddyMac. The US government should have had the conviction to do the following.
1. Let them fail and close
2. Anyone with a mortgage or a guarantee from those agencies have their complete loan forgiven by the US government with rules.
The rules would be something like this
* The owner may not sell the house in the open market for 20 years.
* If the owner wants or needs to sell before they must have a valuation by an arbitration team who will set the sale price at a fair price compared with the value of the house to sell, value of the house to buy (if there is one) and the amount of the loan forgiven.This would have been a cheaper option than putting trillions of dollars into institutions that needed and still need to fail.
Again... An investor who wants to earn something for nothing without working to build value, must risk the full value of the investment or the investment only works for the benefit of the investor, not the borrower.
There are some rich people in the world who earn yes "Earn" high salaries sometimes because they are adjusted for short careers. I am thinking movie and television stars and personalities and sports athletes, lawyers and professionals. However they all work and they all create "value". No objections.
Society needs to recognize the difference. Most people create wealth "Value Creators". A few are "Value Destroyers" who just cream off free value from the "Value Creators".
Indeed in the UK and other countries in the western world the media and popular press are often heard to condemn the social welfare system for paying people who do not want to work. Well, yes the system needs to be modified to encourage people to study or retrain. That is agreed. However, what is the difference between the investor and the "dole" recipient? Nothing, they both get paid without working !
Although a complete review and rebuild of the banking system is required, while there is investment and money without pay, the investor must be prepared to loose all of the invested money in event of a default and not try and modify his potential loss with derivative products. The real risk is the full value of the investment, any derivative sold by a financial engineer or banker that costs less than the investment to protect is a confidence trick and merely passing on the risk to another or other parties at parity with the original investment or even leveraged so that there is more risk than in the original investment.
Looking at the collapse of US mortgage quasi government agencies FannieMae and FreddyMac. The US government should have had the conviction to do the following.
1. Let them fail and close
2. Anyone with a mortgage or a guarantee from those agencies have their complete loan forgiven by the US government with rules.
The rules would be something like this
* The owner may not sell the house in the open market for 20 years.
* If the owner wants or needs to sell before they must have a valuation by an arbitration team who will set the sale price at a fair price compared with the value of the house to sell, value of the house to buy (if there is one) and the amount of the loan forgiven.This would have been a cheaper option than putting trillions of dollars into institutions that needed and still need to fail.
Again... An investor who wants to earn something for nothing without working to build value, must risk the full value of the investment or the investment only works for the benefit of the investor, not the borrower.
There are some rich people in the world who earn yes "Earn" high salaries sometimes because they are adjusted for short careers. I am thinking movie and television stars and personalities and sports athletes, lawyers and professionals. However they all work and they all create "value". No objections.
Society needs to recognize the difference. Most people create wealth "Value Creators". A few are "Value Destroyers" who just cream off free value from the "Value Creators".
Tuesday, October 27, 2009
Mary Mary quite contrary, how does globalization go?
The funny thing about globalization is the capitalists say they want it and need it
(When actually the capitalists will expire if and when true globalization is in place)
The anti globalization groups who fight against it, should actually be fighting for it.
My viewpoint. The capitalist needs poor countries to source goods and labour so that his finished products can sell at considerably higher prices than the raw materials and cost of manufacturing.
Under true globalization we have a central world government that controls the big problems such as carbon emissions, global warming and management and planning of the worlds resources for 50 years in the future.(50 year plans) One currency with freedom of movement for all citizens means the cost of raw materials and labour will neutralize globally providing new opportunities for those who embrace it. The old world capitalists will crumble with no 3rd world to rape or pillage.
(When actually the capitalists will expire if and when true globalization is in place)
The anti globalization groups who fight against it, should actually be fighting for it.
My viewpoint. The capitalist needs poor countries to source goods and labour so that his finished products can sell at considerably higher prices than the raw materials and cost of manufacturing.
Under true globalization we have a central world government that controls the big problems such as carbon emissions, global warming and management and planning of the worlds resources for 50 years in the future.(50 year plans) One currency with freedom of movement for all citizens means the cost of raw materials and labour will neutralize globally providing new opportunities for those who embrace it. The old world capitalists will crumble with no 3rd world to rape or pillage.
Things about Ole Blitey that require change (2)
If my Nu-K party (See below) were ever elected, this is one of the things I would change.
One of the biggest hurdles to renewal in UK is the preference to nickle and dime just another few years from a crumbling Victorian infrastructure. Part of this mindset is the "National Heritage" Protected buildings argument. In my view, just because a building is old, does not mean it should be a protected asset. If there is some external architectural significance, then by all means keep the facade and rebuild the interior to modern standards (Yes that does include air-conditioning that works).
On a return trip to London a few years ago I drove by taxi through the busy Old Street roundabout. I was amazed that this congested junction was being made worse by adding traffic islands in the middle of the road to restrict traffic to single file !!!
To try to demonstrate how ludicrous this is imagine a medical scenario. If a patient has chronic heart blockage, the doctors will provide him a stent to open up the artery. They don't give him sausage , egg and chips with black pudding and fired bread and tell him to come back in a months time.
The country I live in Japan has been in recession for the past 25 years, however they still renew in all their infrastructure every single year. The result is that Japan is ready to compete in the 21st century, with any other 21str century economy including China. Unfortunately, old democracies will be headings straight for the 4th world nation status. Since UK hasn't centrally planned and renewed anything since the days of Queen Victoria, and the USA hasn't done anything since the 1950s - 1960s. Reinvestment in infrastructure and the nation as a whole for the benefit of all citizens is key. Raping and pillaging old infrastructure in search of quenching the insatiable desire for profit must be condemned and if necessary outlawed.
One of the biggest hurdles to renewal in UK is the preference to nickle and dime just another few years from a crumbling Victorian infrastructure. Part of this mindset is the "National Heritage" Protected buildings argument. In my view, just because a building is old, does not mean it should be a protected asset. If there is some external architectural significance, then by all means keep the facade and rebuild the interior to modern standards (Yes that does include air-conditioning that works).
On a return trip to London a few years ago I drove by taxi through the busy Old Street roundabout. I was amazed that this congested junction was being made worse by adding traffic islands in the middle of the road to restrict traffic to single file !!!
To try to demonstrate how ludicrous this is imagine a medical scenario. If a patient has chronic heart blockage, the doctors will provide him a stent to open up the artery. They don't give him sausage , egg and chips with black pudding and fired bread and tell him to come back in a months time.
The country I live in Japan has been in recession for the past 25 years, however they still renew in all their infrastructure every single year. The result is that Japan is ready to compete in the 21st century, with any other 21str century economy including China. Unfortunately, old democracies will be headings straight for the 4th world nation status. Since UK hasn't centrally planned and renewed anything since the days of Queen Victoria, and the USA hasn't done anything since the 1950s - 1960s. Reinvestment in infrastructure and the nation as a whole for the benefit of all citizens is key. Raping and pillaging old infrastructure in search of quenching the insatiable desire for profit must be condemned and if necessary outlawed.
Things about Ole Blitey that require change (1)
If my Nu-K party (See below) were ever elected, this is one of the things I would change.
My son is a dual national holding a full Japanese and a full British passport. He is now studying full time at university in England. But... I have to pay full international school fees for him. Instead of around 3,000 pounds a year, I have to pay 16,800 currently with raises every year.
When I checked with the ministry of education I found out that it is not based on Nationality, but on whether anyone in my immediate family has paid tax for 3 years previously. Having been an expat since 1986 the answer was no. But I have paid 12 years of taxes previously to UK treasury.
To add insult to injury, when I forced a response to the following hypothetical situation, I was amazed at the response.
" If a Korean family of 5 (arbitrary number) goes to U.K. since the Father's company need him to work in UK on a 3 year secondment. If after 3 years his head office require him to return to Korea but his eldest son is University age and wants to study in UK, what fees will he pay?"
The answer was 3,000 pounds the domestic rate. And yet the son doesn't even have a claim to citizenship, let alone a full passport.
Further to that, in my son's last year in Japan at high school he visited Hungary and Austria for a school choir trip. Being a parent it was my duty to ask about passports and visas etc. I was told by the Austrian Embassy in Japan that either passport was good to travel. At that time I also asked them that if my son wanted to study at the prestigious Mozart Academy, and assuming he passed the audition, what other requirements would there be. I was told that he would require at least 1 year of high school German language. Which is fine and understood. When I asked about fees I was told that since he has a full UK passport and UK is part of the European Union, he would pay domestic European fees, which at the time converted to approximately 2,700 pounds per year.
No wonder the UK is in such a mess.
My son is a dual national holding a full Japanese and a full British passport. He is now studying full time at university in England. But... I have to pay full international school fees for him. Instead of around 3,000 pounds a year, I have to pay 16,800 currently with raises every year.
When I checked with the ministry of education I found out that it is not based on Nationality, but on whether anyone in my immediate family has paid tax for 3 years previously. Having been an expat since 1986 the answer was no. But I have paid 12 years of taxes previously to UK treasury.
To add insult to injury, when I forced a response to the following hypothetical situation, I was amazed at the response.
" If a Korean family of 5 (arbitrary number) goes to U.K. since the Father's company need him to work in UK on a 3 year secondment. If after 3 years his head office require him to return to Korea but his eldest son is University age and wants to study in UK, what fees will he pay?"
The answer was 3,000 pounds the domestic rate. And yet the son doesn't even have a claim to citizenship, let alone a full passport.
Further to that, in my son's last year in Japan at high school he visited Hungary and Austria for a school choir trip. Being a parent it was my duty to ask about passports and visas etc. I was told by the Austrian Embassy in Japan that either passport was good to travel. At that time I also asked them that if my son wanted to study at the prestigious Mozart Academy, and assuming he passed the audition, what other requirements would there be. I was told that he would require at least 1 year of high school German language. Which is fine and understood. When I asked about fees I was told that since he has a full UK passport and UK is part of the European Union, he would pay domestic European fees, which at the time converted to approximately 2,700 pounds per year.
No wonder the UK is in such a mess.
Sale of public assets.
For a number of years the governments of this world have sold public assets created at the past taxpayers expense to private industry.
Examples are National Telecoms Companies, National Post and Parcel services, National Rail Services, Healthcare and the like. The governments "claim" private industry will run them more efficiently and therefore more profitably. They will also claim that this is a good time to sell that asset. (Usually to make up some of the red ink that the bad governments have caused)
Logically, In public hands a company can provide good competitive services for that sector, and may often benefit from being a monopoly. Once bought the private company will want to minimize cost so that they can "quench their insatiable desire for profit". This means a drop in services, staff levels and quality. Put bluntly, if a company isn't providing high quality goods and services with public ownership, it will only get worse in private ownership.
We now have the ridiculous situation where health-care insurance companies are dictating what operations and care the patient can receive, not the patients doctors.
No wonder the insurance companies are up in arms at the Obama proposal to renew and modify the healthcare system. The health-care insurance companies have a true fear that the profits will end. Why should any company be allowed to make monster profits from the sickness and medical need of ordinary citizens. Therefore, I put healthcare insurance companies in the same category as tobacco companies and drug dealers. i.e. They make profits from the misery of others.
Examples are National Telecoms Companies, National Post and Parcel services, National Rail Services, Healthcare and the like. The governments "claim" private industry will run them more efficiently and therefore more profitably. They will also claim that this is a good time to sell that asset. (Usually to make up some of the red ink that the bad governments have caused)
Logically, In public hands a company can provide good competitive services for that sector, and may often benefit from being a monopoly. Once bought the private company will want to minimize cost so that they can "quench their insatiable desire for profit". This means a drop in services, staff levels and quality. Put bluntly, if a company isn't providing high quality goods and services with public ownership, it will only get worse in private ownership.
We now have the ridiculous situation where health-care insurance companies are dictating what operations and care the patient can receive, not the patients doctors.
No wonder the insurance companies are up in arms at the Obama proposal to renew and modify the healthcare system. The health-care insurance companies have a true fear that the profits will end. Why should any company be allowed to make monster profits from the sickness and medical need of ordinary citizens. Therefore, I put healthcare insurance companies in the same category as tobacco companies and drug dealers. i.e. They make profits from the misery of others.
Public Companies who pay dividends.
Once the general public begin to wake up what is really happening behind the scenes they will realize the following.
1. If a company can pay dividends to shareholders one of the following is true.
(a) That company is cheating its workers and is not paying them their full worth.
(b) That company is charging too much for its products or services.
(c) A combination of (a) and (b)
2. Because public companies are allowed to issue common shares, it is the equivalent of having a printing press that makes money. Many public companies are not run by good business men and some companies operate on the fringe of the law such that they need a sea of in house lawyers to fend of litigation. Some of these companies are run by wide boy type businessmen. Should we not have stricter checks on who may become a director of a public company?
Once the common man realizes these factors, he will not want to work for a company that pays dividends. Once the supply of staff becomes scarce to these companies, they will have to start to pay a premium to hire staff. Once that happens the dividend pool will be depleted and companies who pay dividends will be forced to operate in a more open and socially friendly manner.
1. If a company can pay dividends to shareholders one of the following is true.
(a) That company is cheating its workers and is not paying them their full worth.
(b) That company is charging too much for its products or services.
(c) A combination of (a) and (b)
2. Because public companies are allowed to issue common shares, it is the equivalent of having a printing press that makes money. Many public companies are not run by good business men and some companies operate on the fringe of the law such that they need a sea of in house lawyers to fend of litigation. Some of these companies are run by wide boy type businessmen. Should we not have stricter checks on who may become a director of a public company?
Once the common man realizes these factors, he will not want to work for a company that pays dividends. Once the supply of staff becomes scarce to these companies, they will have to start to pay a premium to hire staff. Once that happens the dividend pool will be depleted and companies who pay dividends will be forced to operate in a more open and socially friendly manner.
Thursday, October 22, 2009
Is the time value of money formula true?
I challenge the establishment.
Our whole financial system is based on the time value for money formula. 1 unit of currency today is worth 1 unit + interest at some time in the future.
Why?
Because you have use of my money for x months or years, so you have to give me more back to compensate my loss.
Why?
Paper money is still an analogy for gold. In the olden days of gold nuggets did a nugget grow in size after 1 2 or even 3 years? No of course it didn't. Perhaps you might argue if a plant or an animal were used as currency, then the time value of money formula might have validity.
Here is my view:
A clever group of rich old men figured out that they cannot take worldly goods or money with them after death. However they could pass wealth on to the offspring.
However this wasn't good enough for them. They felt that since even ancient economies fluctuated there could be no guarantee of the worth of unit of currency today compared with its value tomorrow. (i.e. its value can also decrease).
So the notion of interest baring money was born.
In today's capitalist societies we assume that we can buy goods, raw materials and labour in cheap underdeveloped countries add some value making a product and sell the item on for (total cost + profit). So long as a gap exists between raw materials and the finished product price there will always be inflation (or GDP). Therefore if there is always inflation the cost of money must also go up (carry interest).
I challenge the fact that we need to make huge profits and have this constant inflationary spiral. Steady state capitalism is the way forward.
Our whole financial system is based on the time value for money formula. 1 unit of currency today is worth 1 unit + interest at some time in the future.
Why?
Because you have use of my money for x months or years, so you have to give me more back to compensate my loss.
Why?
Paper money is still an analogy for gold. In the olden days of gold nuggets did a nugget grow in size after 1 2 or even 3 years? No of course it didn't. Perhaps you might argue if a plant or an animal were used as currency, then the time value of money formula might have validity.
Here is my view:
A clever group of rich old men figured out that they cannot take worldly goods or money with them after death. However they could pass wealth on to the offspring.
However this wasn't good enough for them. They felt that since even ancient economies fluctuated there could be no guarantee of the worth of unit of currency today compared with its value tomorrow. (i.e. its value can also decrease).
So the notion of interest baring money was born.
In today's capitalist societies we assume that we can buy goods, raw materials and labour in cheap underdeveloped countries add some value making a product and sell the item on for (total cost + profit). So long as a gap exists between raw materials and the finished product price there will always be inflation (or GDP). Therefore if there is always inflation the cost of money must also go up (carry interest).
I challenge the fact that we need to make huge profits and have this constant inflationary spiral. Steady state capitalism is the way forward.
A Question of Sport (Opium of the Masses)
* Governments have long realized that their policies or actions could under analysis by the masses give them either very low ratings, or force a change of government.
* Thinking doesn't come easily for most people, in fact it is hard work.
The governments of this world realize that the average working and middle class males find it hard to communicate at work with their fellow male co-workers. General homophobia and macho mentality prevent them from talking about home life, family and children. Therefore there is a dangerous vacuum in which original male thought might evolve.
So.... The governments appeal directly to the little head and give them something that is easy. No thinking involved. Plenty of sport, sport, sport. Books, clothes, premium TV channels, a thousand and one different games. That's right folks! Appeal directly to the testosterone and you will never have a problem from the male populace. They will never have to think again. It works !
While not wanting to criticize sport and exercise to keep fit and healthy, I do want to criticize the trillions of dollars every year that is spent on professional sports. Clothes, videos, interviews, TV rights, athletes salaries, Newspapers and magazines, TV commercials, sponsorship. The list goes on.
The fact is SPORT DOES NOTHING! It doesn't solve any world problems. It doesn't stop wars. it doesn't clean up the atmosphere. It doesn't help the poor and starving. In effect it does nothing positive for the world. It triggers an adrenaline rush and
over production of testosterone which in turn makes men more aggressive which in turn makes "The survival of the fittest" the norm in our so called advanced society.
Wars are fought over religion that we know well, so when will the first war caused by sport be? We have the makings of tribal wars in soccer stadiums already.
Imagine if we had a 5 year moratorium on professional sport. No Olympics for one time, No world cup for one time. Sports teams, leagues athletes and everything concerned with sports can be run at break even just for 5 years. All the additional
money will be siphoned off by 100pct taxation thresholds. i.e. No one needs to earn more than $1mio per year so anything over that is taxed at 100pct. With this new tax windfall the government can create new projects with new jobs on a massive scale such as synthetic tree carbon scrubbers to reduce CO2 in the atmosphere. Sport could actually give something back to the world.
But that is unlikely to happen since sport is big business, it generates trillions of dollars, the greedy want their share. Those in charge realize that such a break on professional sports will again create that "vacuum" where original thinking might occur.
Just take a look at the average sports enthusiast. Beady glazed eyes close- set in the face. An obvious excitement when with another group of males talking about sport. Their bodies twitch as they discuss trivia about this player or that handicap.
Someone in the group will think he has an important statistic to relay so that when the group do not listen for the 3rd time he virtually shouts out this precious piece of trivia so he can feel part of the group, part of the team. Take a look at Australia.
A nation that is totally controlled by sport. Every citizen is sports crazy, male or female alike. So long as you can get an Olympic gold nothing else matters. On the contrary everything else matters before worrying about a piece of metal. Those people that make it their life to keep fit and go to the gym several times a week. If excercise burns fat, it also does something to the braincells. It either consumes them or turns them to mush.
I believe mankind and womankind are truly meant to evolve and advance as a peaceful super culture around the universe but to do so we must give up these primitive ideas and thoughts and concentrate on what is important, have original thoughts and to positively change the way we live together. The world doesn't need a winner. We all need to be winners.
* Thinking doesn't come easily for most people, in fact it is hard work.
The governments of this world realize that the average working and middle class males find it hard to communicate at work with their fellow male co-workers. General homophobia and macho mentality prevent them from talking about home life, family and children. Therefore there is a dangerous vacuum in which original male thought might evolve.
So.... The governments appeal directly to the little head and give them something that is easy. No thinking involved. Plenty of sport, sport, sport. Books, clothes, premium TV channels, a thousand and one different games. That's right folks! Appeal directly to the testosterone and you will never have a problem from the male populace. They will never have to think again. It works !
While not wanting to criticize sport and exercise to keep fit and healthy, I do want to criticize the trillions of dollars every year that is spent on professional sports. Clothes, videos, interviews, TV rights, athletes salaries, Newspapers and magazines, TV commercials, sponsorship. The list goes on.
The fact is SPORT DOES NOTHING! It doesn't solve any world problems. It doesn't stop wars. it doesn't clean up the atmosphere. It doesn't help the poor and starving. In effect it does nothing positive for the world. It triggers an adrenaline rush and
over production of testosterone which in turn makes men more aggressive which in turn makes "The survival of the fittest" the norm in our so called advanced society.
Wars are fought over religion that we know well, so when will the first war caused by sport be? We have the makings of tribal wars in soccer stadiums already.
Imagine if we had a 5 year moratorium on professional sport. No Olympics for one time, No world cup for one time. Sports teams, leagues athletes and everything concerned with sports can be run at break even just for 5 years. All the additional
money will be siphoned off by 100pct taxation thresholds. i.e. No one needs to earn more than $1mio per year so anything over that is taxed at 100pct. With this new tax windfall the government can create new projects with new jobs on a massive scale such as synthetic tree carbon scrubbers to reduce CO2 in the atmosphere. Sport could actually give something back to the world.
But that is unlikely to happen since sport is big business, it generates trillions of dollars, the greedy want their share. Those in charge realize that such a break on professional sports will again create that "vacuum" where original thinking might occur.
Just take a look at the average sports enthusiast. Beady glazed eyes close- set in the face. An obvious excitement when with another group of males talking about sport. Their bodies twitch as they discuss trivia about this player or that handicap.
Someone in the group will think he has an important statistic to relay so that when the group do not listen for the 3rd time he virtually shouts out this precious piece of trivia so he can feel part of the group, part of the team. Take a look at Australia.
A nation that is totally controlled by sport. Every citizen is sports crazy, male or female alike. So long as you can get an Olympic gold nothing else matters. On the contrary everything else matters before worrying about a piece of metal. Those people that make it their life to keep fit and go to the gym several times a week. If excercise burns fat, it also does something to the braincells. It either consumes them or turns them to mush.
I believe mankind and womankind are truly meant to evolve and advance as a peaceful super culture around the universe but to do so we must give up these primitive ideas and thoughts and concentrate on what is important, have original thoughts and to positively change the way we live together. The world doesn't need a winner. We all need to be winners.
Wednesday, October 21, 2009
NU-(U)K Party
As a UK citizen who has lived out of the country for 23 years and a person who is disgusted that I could never live in that nasty, dingy, grey country in which I was born.
Many things have upset my over the years which I will post later. However, in the past year or so, I have been thinking about creating a political party in exile. British citizens and subjects that feel the same as me.
Britain has been run and managed by idiots for the past 40 years or so. It is time to change with a new constitution and new priorities and a new economic system to lead the world as Britain once did before.
Primarily, there are 3 concepts that would form the manifesto.
The first is a prolific line from the movie V for Vendetta, nevertheless it is very poignant.
Concept number 1.
Concept number 2.
Modify our economic system of capitalism (with greed).
Outlaw the insatiable desire for profit.
This new system will be called "Steady State Capitalism" or something similar.
Concept number 3.
Every citizen is entitled to the following three items.
a) FREE Healthcare cradle to grave.
b) FREE Global quality education from the age of 5 to first university degree level.
c) Good quality, affordable housing for all citizens. (If you treat people like animals, some of them will behave like animals)
The fact that the UK hasn't re-invested in major infrastructure since Victorian times, and that businesses are prepared to nickle and dime of that failing infrastructure needs to be adjusted.
I will add further items as I think of them or think them through.
Still the universities of this world teach about Reagan and Thatcher economics. These people truly messed up a generation. The isolated "inflation" as the bogey man and tried to hammer it out at all costs. What they failed to realize is that Inflation is called inflation when you do not want it and GDP growth when you do. It is the same animal. A fundamental design error in our current global democratic economic systems.
If anyone is interested in forming a UK government in exile or talking about designing a new and better economic system please contact me.
Many things have upset my over the years which I will post later. However, in the past year or so, I have been thinking about creating a political party in exile. British citizens and subjects that feel the same as me.
Britain has been run and managed by idiots for the past 40 years or so. It is time to change with a new constitution and new priorities and a new economic system to lead the world as Britain once did before.
Primarily, there are 3 concepts that would form the manifesto.
The first is a prolific line from the movie V for Vendetta, nevertheless it is very poignant.
Concept number 1.
"People should not be afraid of their governments. Governments should be afraid of their people."
Concept number 2.
Modify our economic system of capitalism (with greed).
Outlaw the insatiable desire for profit.
This new system will be called "Steady State Capitalism" or something similar.
Concept number 3.
Every citizen is entitled to the following three items.
a) FREE Healthcare cradle to grave.
b) FREE Global quality education from the age of 5 to first university degree level.
c) Good quality, affordable housing for all citizens. (If you treat people like animals, some of them will behave like animals)
The fact that the UK hasn't re-invested in major infrastructure since Victorian times, and that businesses are prepared to nickle and dime of that failing infrastructure needs to be adjusted.
I will add further items as I think of them or think them through.
Still the universities of this world teach about Reagan and Thatcher economics. These people truly messed up a generation. The isolated "inflation" as the bogey man and tried to hammer it out at all costs. What they failed to realize is that Inflation is called inflation when you do not want it and GDP growth when you do. It is the same animal. A fundamental design error in our current global democratic economic systems.
If anyone is interested in forming a UK government in exile or talking about designing a new and better economic system please contact me.
Tuesday, October 20, 2009
The Gold Lease Scam
From the 1980's one U.S. investment bank was notable for creating a new range of "derivative financial products" Firstly, the interest rate currency swap. Also the gold lease.
This is the same team and era that spawned famous traders. Rich and famous traders who brought companies to the brink (and over the brink) . One case in example LTCM.
Many of these whiz kid traders should be labeled "Financial Terrorists" since they cause just as much misery to their victims as a religious fanatic with a bomb.(Think about Enron and the life savings of its employees).
It is time to stamp out these "greed factor" Social manipulators armed with "rocket science" maths on their side that not many can understand. In particular the first generation traditional bankers who are their bosses. Actually, there is no proof that analysis of any indicator has any ability to predict future prices. However in the markets it is like a cult religion and therefore must be learned. It also serves as a bit of insurance for the trader if he screws up he can tell his boss "I was watching this indicator, or chasing that moving average". His boss being of the same "cult" will probably see his viewpoint and let him off lightly.
It is time to stamp out these "greed factor" Social manipulators armed with "rocket science" maths on their side that not many can understand. In particular the first generation traditional bankers who are their bosses. Actually, there is no proof that analysis of any indicator has any ability to predict future prices. However in the markets it is like a cult religion and therefore must be learned. It also serves as a bit of insurance for the trader if he screws up he can tell his boss "I was watching this indicator, or chasing that moving average". His boss being of the same "cult" will probably see his viewpoint and let him off lightly.
Most of these people have come from "old money families"
I am going to talk about the "gold lease" (One financial product that scammed the central banks of the world). Basically it goes like this.
When the global system decoupled from the gold reserve standard (where central banks were expected to carry enough gold in their vaults to support all the money in circulation) Central banks were left holding large amounts of gold in their vaults. The Financial Terrorists decided it would be a good idea to invent a financial instrument called the "gold lease" The theory is, The investment bank would take physical delivery of the gold and pay the central banks a low rate of interest originally 1 pct. (Better than nothing, already my life). The leases took the place of gold in the central bank vaults and everything looked great, until after about a year the central bankers realized that they had been duped. The price of gold had risen, They had entrusted the investment bank with all their gold. The gold had all been sold outright in the commodities markets and the investment bank continued to rollover (renew) leases at 1 pct or similar low rate. By the sales of the gold to the markets, the investment bank was able to re-invest in diverse markets making higher levels of interest and pocket the difference. When the world's central bankers finally realized what was going on it was ludicrously too late. Rather than admit they had been duped (The worlds top bankers had been scammed), and the fallout effects on the global economy they decided to keep quiet and pretend it hadn't happened and that they were still rolling over gold leases.
Where is this investment bank now? Part of a another nearly failed (some would say already failed) institution called Citibank. Where is the accountability. None!
The worlds financial markets continue to be abused by the bankers that work as traders. Now into the third generation, we have adopted globally the American style of Human Resources HR management. These people are for the most part low level management incapable of much original thought. Copying the old IT managers rule which was . "If you buy IBM, you will never be fired", the HR managers went on a similar tact themselves, When recruiting for finance and trading it was modified to "If you hire a PhD, you will never get fired".
So, we now have in our financial markets bright traders who are Indian, Chinese, Pakistani all who are brilliant, eminent and well trained "SCIENTISTS" who have been persuaded to work in finance for the financial advantage. While the scientific community cries out for talent. These highly educated guys are trained to work in the Newtonian world where they learn that
1. The speed of light is constant.
2. The force of gravity is constant over distance.
3. The laws of thermodynamics are constant.
etc etc.
These guys know how to work with constants. When however in financial markets the market turns 180 degrees in the blink of an eye, the PhD traders missed it and what's more do not know why! I have been in finance since I was 17 and have seen all of these types of people first hand. Its not so many years ago when traders were putting long dated trades on the bank's trading book because of "positive carry" (Means it looks profitable in the near term), so that they could inflate their multi-million dollar bonuses. They would also boast about it in the market bars after.
Currently white collar crime and financial terrorists are looked as naughty children. These crimes do not have sufficient punishments. I think that the following should be minimum in such cases as financial terrorism is proved.
1. The person is made instantly bankrupt and all his or her global assets are seized forever.
2. That person is banned for life from holding a public office or a directorship in a company
3. That person is never to be allowed credit in the future including credit cards.
4. At least a 10 year prison term with no special low security privileges.
5. No appeals.
5. No appeals.
The problem is, the law makers, and the lawyers, are all part of this "merry-go-round" and support the old money system. The old money money has all the aces and would never allow that to happen. Shame. It needs the average American to realize that the freedom of America and the American dream are no more than a fantasy planted by the super rich, and only achievable when you are in that little niche group.
The average man has to wake up, start thinking (which is difficult), and see what is really happening around him. The working man has the power in his hands to change the world if he would only think.
The average man has to wake up, start thinking (which is difficult), and see what is really happening around him. The working man has the power in his hands to change the world if he would only think.
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