A Tale of Two Central Bankers


This ever increasing problem of a ” no bail-out clause” in 1993 when the European Central Bank was created, will not allow for as many changes as Draghi requires!

Firstly as the ” lender of last resort ” and as the name implies it will only look to operate within the framework set down within its primary objective, that of price stability. Or to put it another way keep inflation down through out the Euro Zone,when countries overheat!

The sheer fact that its mandates prevent any change in this by virtue of its stringent rules,that all assets offered to the bank as collateral are at least in theory good and all equally free from the risk of inflation. This particular mandate relates to sovereign debt and its percentage of its ” gross domestic product” as a member state!

This particular clause with regard to ” sovereign debt and gross domestic product” calls into question the changes Draghi is looking to implement to save the Euro!

Firstly the countries in financial difficulty have toxic assets with little or no worth. So can only be purchased as junk and as countries in this situation already have junk status, his proposal to purchase various countries bonds would not keep inflation down but fuel overspending! The additional fact he is proposing letting the bank print more money in a last attempt to prevent this overheating will only prevent an even more catastrophic overspend by countries desperate to repay their debts.
Read the Article at HuffingtonPost

The Euro Will Eventually Go The Way Of The Dodo

English: The government debt of Portugal, Ital...

English: The government debt of Portugal, Italy, Ireland, Greece, United Kingdom, Spain (PIIGGS) against the European Union and Eurozone 2002-2009. Data from Eurostat. (Photo credit: Wikipedia)

European Union

European Union (Photo credit: Wikipedia)

National-Debt-GDP (Photo credit: Wikipedia)

On Thursday this week we were told that the 4th Euro Zone country may need a possible sovereign bailout of 100 billion Euros. The fact this amount as l reported previously has risen from 23 to 43 to 46 and now 100 billion by miscalculation of debt! It now appears that it is imminent in any case. This extract picked up at the time goes someway to explain the need but not the reason WHY?

Extract –

Spain’s troubles are mounting, with indebted regions asking the central government for help and borrowing costs at record highs. There are fears that the euro zone’s fourth-largest economy may need a full sovereign bailout even though the country has just received a €100 billion ($121 billion) rescue package to shore up its ailing banks.

The European Union is responding with plans for the temporary bailout fund, the European Financial Stability Facility (EFSF), to buy Spanish bonds on the secondary market in order to push down interest rates on those bonds, German newspaperSüddeutsche Zeitung is reporting on Thursday.

“If Madrid submits a request we are prepared to act,” an unnamed EU diplomat told the paper. Spanish Finance Minister Luis de Guindos has urged EU colleagues to authorize the EFSF to buy Spanish bonds. He met German Finance Minister Wolfgang Schäuble on Tuesday and French Finance Minister Pierre Moscovici on Wednesday.

The bank bailout for Spain is a prerequisite for the EFSF to buy bonds because EFSF rules state that this kind of financial aid is only permitted if the affected country has an unresolved banking problem, Süddeutsche said. “We hope we can calm the markets now,” it quoted the EU diplomat said as saying.

So how is it these countries have got into this position, as night follows day  Greece began the need for X billions but with no GDP to repay what they owe! So then along comes the fourth largest economy and this time they want a lot more again what can they repay it with! At present they have massive debts and much of this debt is never ever going to be repaid!

Reason –

It is invested in a dwindling asset such as property, which 20 years ago had the same problem, it crashed and many people lost their homes! Another 10 years further on and we are back there this time not 100’s of thousands are owed but billions and in some cases overall debt in the world amounts to http://www.usdebtclock.org/world-debt-clock.html well take a look at how it rises second by second and it will amaze you!

So we got here by wanting more to buy more and then our GDP would rise more but of course so would our debt’s When you lend without any form of financial management you are being what can only be called as cavalier or reckless with your lending policies! By this method we lend billions to a country to bail it out for covering their debts for 3 months and in some cases 1 month. Is this not reckless lending and not considering in 1 month what this country will do, let alone having increased their debt! The best solution our EU leaders can come up with is this extract!

Extract 2

‘The Best Solution’

Berlin has made no official statement on Spain’s request but sources close to the German government said it wasn’t opposed to bond purchases in principle. Such a move would have to be signed off by a German parliamentary panel consisting of nine lawmakers made up of members of all the five parties represented in parliament. Chancellor Angela Merkel‘s center-right coalition has five parliamentarians on the panel.

The French government supports bond purchases. French President Francois Hollande on Wednesday called for rapid and decisive help. 

Words like rapid and decisive help this will be the same rapid and decisive help for Greece that has dragged out month after month after month, anyone remember Greece’s first request it was May 11th 2010 as reported by the WSJ and it stated in this post –

Wall Street Journal – May 11th 2010 –

Greece to Request First Aid Tranche

ATHENS—Greece on Tuesday will formally submit its request for the first tranche of aid from the European Union and on Wednesday will receive the first installment of financial support from the International Monetary Fund.

“We will be submitting the formal request for the transfer of €14.5 billion [$18.54 billion] from the EU.

The figure was 14.5 billion Euros was what they asked for and the upshot was this from an extract in Wikipedia

Extract 3

The downgrading of Greek government debt to junk bond status in April 2010 created alarm in financial markets. On 2 May 2010, the eurozone countries and the IMF agreed on a €110 billion bailout loan for Greece, conditional on the implementation of austerity measures. In October 2011, Eurozone leaders agreed to offer a second €130 billion bailout loan for Greece, conditional not only the implementation of another austerity package, but also that all private creditors should agree to a restructure of the Greek debt, reducing the debt burden from a forecasted 198% of GDP in 2012 to a more sustainable level at 120.5% of GDP by 2020.

The amount was not 14.5 billion but 100 billion in May 2010 and a further amount of 130 billion in October 2011 and the provisions agreed would be reduce debt burden from 198% of GDP in 2012 to a more sustainable level of 120.5% of GDP by 2020.

My simple overriding question is HOW? Can any country reduce their debt burden when they borrow such vast amounts! Would it not have been better to stage manage a small tranche of funds are requested and monitored their economy closely for where the problems were before this commitment to lending such a vast amount!

I can see Spain going the way of Greece and eventually the Euro going the way of the dodo!

Nobody can sustain 120.5% debt burden and repayment is not achievable in any case, given the present global financial situation!

#angela-merkel, #european-financial-stability-facility, #european-union, #german, #greece, #suddeutsche-zeitung, #spain, #wolfgang-schauble

Proud Sponsors Of Mums!

Procter and Gamble Twin Towers Cincinnati

Procter and Gamble Twin Towers Cincinnati (Photo credit: Wikipedia)

Former P&G logo
Former P&G logo (Photo credit: Wikipedia)
Cincinnati's Procter & Gamble is one of Ohio's...

Cincinnati’s Procter & Gamble is one of Ohio’s largest companies in terms of revenue. (Photo credit: Wikipedia)

But how much do we know about this multi billion dollar corporate entity well very little!

It began with two men called William Proctor and James Gamble and grew into the P&G brand and of course proud sponsors of mum’s! But what is really behind this statement and what are there real intentions, as sponsors of mums!

Firstly any sponsorship deal is based on return by the sheer fact that gain is the driving force! William Proctor a candle-maker and James Gamble a soap maker produced their first product after emigrating to Cincinnati and marrying and a suggestion was made by Andrew Norris their father in law on October 31st 1837 and Proctor and Gamble was born. An advantageous partnership you may say born on of all days ” Halloween” or ” All Saints Day ” and their first contract was selling candles and soap to the army

n 1858–1859, sales reached $1 million. By this point, approximately 80 employees worked for Procter & Gamble. During the American Civil War, the company won contracts to supply the Union Army with soap and candles. In addition to the increased profits experienced during the war, the military contracts introduced soldiers from all over the country to Procter & Gamble’s products.

The company soon to become a group by simple acquisition after acquisition grew and grew and grew without regard for the consequences and eventually by the year 2000 acquired http://en.wikipedia.org/wiki/BeingGirl to advise and provide help and guidance on all forms of self-care and eating disorders and the like. The continued to acquire media outlets under the name PGP and phased out the soap industry, that began it all!

Price fixing

In April 2011, P&G was fined 211.2m euros by the European Commission for establishing a price-fixing cartel in Europe along withUnilever, who was fined 104m euros, and Henkel (not fined). Though the fine was set higher at first, it was discounted by 10% after P&G and Unilever admitted running the cartel. As the provider of the tip-off leading to investigations, Henkel was not fined.[20]

Toxic shock syndrome and tampons

Toxic shock syndrome (TSS) is a disease caused by strains of the bacteria Staphylococcus aureus. Most people have these bacteria living in their bodies as harmless commensals in places such as the nose, skin, and vagina. The disease can strike anyone, not only women, but the disease is often associated with tampons. In 1980, 814 menstrual-related TSS cases were reported; 38 deaths resulted from the disease. The majority of women in these cases were documented as using super-absorbent synthetic tampons, particularly theRely tampon created by Procter & Gamble.[21] The Rely tampon was so super-absorbent that one by itself could in fact hold one woman’s entire menstrual period flow. Unlike other tampons made of cotton and rayon, Rely used carboxymethylcellulose and compressed beads of polyester for absorption. The materials used in Rely were causing an increase in the thickness of fluid inside the vagina, resulting in more toxins being released.

The slogan used by Procter & Gamble for the product was “Rely. It even absorbs the worry.”

In the summer of 1980 the Centers for Disease Control released a report explaining how these bacterial mechanisms were leading to TSS. They also stated that the Rely tampon was associated with TSS more than any other brand of tampon. In September 1980, Procter & Gamble voluntarily recalled its Rely brand of tampons from the market and agreed to provide for a program to notify consumers. Since the 1980s, reported cases of TSS have dramatically decreased.[22]

Animal testing

On June 30, 1999, Procter & Gamble announced that it would limit its animal testing practices to its food and drug products which represents roughly 80% of its product portfolio.[23] The company invested more than $275 million in the development of alternative testing methods.[24]

Procter & Gamble has received criticism from animal advocacy group PETA for the practice of testing on animals.[25]

Other products

In December 2005, the Pharmaceutical division of P&G was involved in a dispute over research involving its osteoporosis drug Actonel. The case was discussed in the media.[26]

In October 2007, a class action lawsuit was filed in the State of Georgia alleging that many users of Crest Pro-Health mouthwash, with the active ingredient Cetylpyridinium chloride, suffered stained teeth and loss of their sense of taste as a result.[27] Procter & Gamble contends that these side effects occur in only three percent of users.[27] The suit seeks to include disclosure warning users of these side effects on product packaging.

The company received unwanted media publicity in the 1980s when rumors spread that the moon-and-stars logo was a satanic symbol. The accusation was based on a particular passage in the Bible, specifically Revelation 12:1, which states: “And there appeared a great wonder in heaven; a woman clothed with the sun, and the moon under her feet, and upon her head a crown of 12 stars.” P&G’s logo consisted of a man’s face on the moon surrounded by 13 stars, and some claimed that the logo was a mockery of the heavenly symbol alluded to in the aforementioned verse, thus construing the logo to be satanic. Where the flowing beard meets the surrounding circle, three curls were said to be a mirror image of the number 666, or the reflected number of the beast. At the top and bottom, the hair curls in on itself, and was said to be the two horns like those of a ram.

These interpretations have been denied by company officials, and no evidence linking the company to the Church of Satan or any other occult organization has ever been presented. The company unsuccessfully sued Amway from 1995 to 2003 over rumors forwarded through a company voicemail system in 1995. In 2011 the company successfully sued individual Amway distributors for reviving and propagating the false rumors.[29]

The moon-and-stars logo was discontinued in 1985 as a result of the controversy.[30]

So who is one of the sponsors who is the proud sponsors of mums well of course it is P&G the question you should ask yourself do you really want to have a company like this saying they are proud sponsors of our mums and most of all our children.

 

#american-civil-war, #cincinnati, #european-commission, #james-gamble, #procter-gamble, #proctor, #toxic-shock-syndrome, #union-army

Is It Tax Avoidance or Tax Evasion?

for the List of offshore financial centres

for the List of offshore financial centres (Photo credit: Wikipedia)

So what is tax avoidance and what is tax evasion?

KEY FINDINGS –
Overall Size – A significant fraction of global private financial wealth — by our estimates, at least $21 to $32 trillion as of 2010 — has been invested virtually tax-free through the world’s still expanding black hole of more than 80 “offshore” secrecy jurisdictions. We believe this range to be conservative, for reasons discussed below.Remember: this is just financial wealth. A big share of the real estate, yachts,racehorses, gold bricks — and many other things that count as non-financial wealth are also owned via offshore structures where it is impossible to identify the owners.These are outside the scope of this report.
On this scale, this “offshore economy” is large enough to have a major impact on estimates of inequality of wealth and income; on estimates of national income and debt ratios; and – most importantly – to have very significant negative impacts on the domestic tax bases of key “source” countries (that is, countries that have seen net unrecorded private capital outflows over time

A simple question most people would say, but look at the reality of what it really means and it is not such a simple question after all!

The problem is simply what is tax evasion and what is tax avoidance and in this world of global financial contracts, the two blur into one. As and having worked in this country and offshore with my own offshore company and account, l personally do not see any reason to avoid paying tax! 

As any accountant l employed had the job of mitigating my tax bill in favour of saving me money and allowing me to pay only what l really should owe! This is legitimate tax avoidance and is completely allowable!  

Then we come to avoiding taxation by paying nothing at all and setting up offshore tax structures in such a way as to legitimise all tax avoidance! Whereby you have all the perks of claiming in the country of residency, but also can arrange to domicile yourself,by certain tax avoidance schemes and  not paying anything!  

So we have two different scenarios and the reason is tax avoidance!

So what of governments and revenue services where do they hold their funds? Well many of them have tax havens and massive property portfolios that are utilised for raising massive amounts of capital for investment purposes and make even more money, to totally avoid tax at all! 

Remember anyone can use legitimate means transfer money to another account offshore without paying tax! The problem is getting that money back into the country and not paying tax!

This is where tax avoidance becomes tax evasion in many cases!  

#32-trillion, #business, #david-gauke, #finance, #hm-revenue-and-customs, #offshore-construction, #policy-exchange, #politics, #tax, #tax-avoidance-and-tax-evasion, #taxation, #united-states

Spain’s Atrocious Piggy Bank Spending Runs Wild

20090113 bankruptcy-01

20090113 bankruptcy-01 (Photo credit: Wikipedia)

Bank

Bank (Photo credit: 401(K) 2012)

A strange title some would say but the sheer fact that Spain has been able to hide these huge amounts of debt, for many a year! Is staggering to say the least!

I have been following this and many more stories on the Euro Zone paying special attention to the amounts being requested and asking myself, is that what they really need! Or what they say they want!

As numerous discussions have taken place with bankers and treasury ministers l have come to the conclusion the ” left hand does not know what the right hand is doing” ! So let us consider the right-hand, this we will call the bankers or treasury ministers who for years have so-called looked after their people’s money! One day it all changes with a new buzz wordBailout Fund” a way for any Euro Zone country to get money to pay off their debts! Wow free money, with very few strings attached just impose austerity on the people whose money you squandered, make them pay, for your incompetence! While you continue to provide the same inept services you always did making sure you get a nice big pay rise to boot!

These figures l provide in the part below this statement are what l personally overheard Spain’s banking minister say when interviewed on 3 separate occasions until last night when Catalonia said we have just enough money for one more month! Well here are the figures –

When the likelihood of a bailout emerged only a short while ago it was just a figure of 23 trillion Euro’s it rose by miscalculation after miscalculation from 46 to a figure of 100 trillion! Last night it was revealed that this was only earmarked for the banks! In fact this will not be enough to bail out the country, this is nearer 350.00 trillion!

So my conclusion is that any country through sheer incompetence gets in a financial mess and are a member of the Euro Zone countries, just cry bailout and make the people pay!

Just one more thing who or what is the left-hand ,well l said in the beginning the ” right hand does not know what the left hand is doing” well the right hand is the bankers and treasury officials! So the left hand must be all the rest of us, who are so blinded by what we are told is all being provided to help our economy grow! Of course prosperity does not come from borrowing more, austerity measures or getting people to spend more, that is cap-it-all-ism!

True prosperity comes like a rich tapestry of life from good honest hard work, good honest people and most of all the faith in oneself to do the best they can for their fellow-man and woman! Not from under-hand and under the counter wheeling and dealing by putting profit before people.

#bailout, #berlin, #catalonia, #european-central-bank, #eurozone, #government-of-spain, #spain, #united-states

True Cost Of The Olympics

Britain - spy nation

Britain – spy nation (Photo credit: Clive Power)

Stratford in east London, near the Olympic park, has undergone a massive investment drive to pretty it up in time for the Games, and now boasts Europe‘s largest shopping center. But the regeneration of one of Britain’s poorest areas threatens to leave long-time residents out in the cold.

The true cost of the Olympics is not yet known but working on the basis of extra troops, accommodation for extra people and those little extras you just have to add! We will be looking at a bill to the taxpayer of say upward of £18 billion with the original estimate of £2.9 billion! All that aside when it is all over and the last flame has been extinguished what will they do with all that costly building works! Will they reward the area with low-cost housing! NO! This is their plan for the future of the Olympic village!

Thousands of new apartments were built for the Olympic village and next year there will be 2,800 flats for sale. But with entry-level prices of 250,000 pounds ($388,000) for a three-room apartment on High Street, they are un-affordable for the vast majority of people in Newham.

Provide the rich with affordable houses built especially for them! Interesting to see what rental charges will be made by the purchasers!

#2012-summer-olympics, #britain, #games, #london, #london-borough-of-newham, #newham, #olympic, #olympic-games

How We Morally Justify Tax Avoidance

Secret denunciations against anyone who will c...

Secret denunciations against anyone who will conceal favors and services or will collude to hide the true revenue from them. (Photo credit: Wikipedia)

Morality

Morality (Photo credit: tdietmut)

CASH IN HAND – 

Has been around for longer than l can remember it goes back to before the use of currency as we know it came into being! So long ago a number of people using goods and chattels provided us with a way to barter, such as a handyman provides a service and gets paid by receiving payment in kind!

I worked with a man called Steve Adams [RIP] he was a craftsman plumber by trade and he received payment in different forms, from a bottle of whiskey, step-ladder and even a car! These people from local politicians through to the man or woman in the street were paid this way,for many a year. it was simply called ” Payment or Benefit in Kind

This like so many ways to not pay tax sooner rather than later were to become know as ” Tax Avoidance” and a rule in the 80’s was coined as ” Benefit In Kind ” for using a vehicle in business or receiving a so-called benefit or as it came to be known a ” Bung” but was this really tax avoidance.

The fact that Cameron came out with the statement that they would clamp down on tax avoidance schemes led some to believe he meant the businesses and banks! Of course the more cynical of us and l am one realised it would mean the ordinary working man or woman.

The fact that the person put in charge has been in charge of showing people how to avoid tax in the past! Does this make him the right person to morally judge us? This extract thanks to Wikipedia shows he had expertise in ” Tax and Structuring ” tells us he was advising people on ” Tax Avoidance Schemes”

Professional Career

He was a researcher to the Conservative MP for Milton Keynes South West Barry Legg in 1993. He worked as a trainee solicitor with Richards Butler from 1995, being admitted as asolicitor in 1997. From 1999 to 2005, he was a solicitor in the financial services group atMacFarlane[1], a corporate law firm with expertise in “tax and structuring”.

David Gauke didn’t find many supporters for his view that paying tradesmen cash in hand was “immoral” yesterday. Dave, Nick, Ed Miliband and Boris all lined up to say they’ve done it before.  

We’ve got a feature by Dan Hodgescalling the affair “another attack on the middle classes” ; he warns politicians about the hazards of moralising on tax. 

So what is morally justified in this world of financial jiggery-pokery http://www.thefreedictionary.com/jiggery-pokery who can give us advice on what we should consider is tax avoidance or just a way to avoid paying our ” just desserts”

Well my answer is that as long as you provide a good service at the right price and submit your tax forms to the appropriate authorities on time, you do the right thing! By using the rules and regulations set down by the HMRC and keeping within them you can utilise legitimate tax avoidance by not paying more than you really have to and keeping yourself, family and tax man firmly on the other side of your front door. As once they have a foothold they will not let go until they drain the life blood from your bank account and provide it to the ” True Avoider’s of this World” the people who made the rules up in the first place!

#barry-legg, #cash, #david-gauke, #ed-miliband, #hm-revenue-and-customs, #macfarlane, #milton-keynes-south-west, #tax-avoidance-and-tax-evasion

Can LOCOG Uphold The Ruling On Photos

 

As everyone is now aware the latest ” LOCOG” ruling relates to anyone taking photos on their mobile phones while they are attending the games, cannot upload them to Twitter or Facebook!

Firstly this in my personal opinion takes away our so-called ” Free Rights ” as any photograph on your phone is yours by the fact of ownership or as it is written ” The new legislation would effectively shift ownership of photos, videos and messages to users, granting them the “right to be forgotten.”

Meaning simply –

That sites like Facebook would not only be required to close an account when requested, but also to package and return photos and messages to the user before deleting any trace of them from their own servers.

Victoria Reding EU Commission says the reforms would harmonize 27 national laws across the Euro zone and give social media users control over how their data is being used, but players in the social media industry are incredulous, objecting both in principle and practice.

So it is still wide open to who really owns your photographs on any social media site.

The question is can LOCOG uphold this ruling if no law has been passed to say who really owns the social media, you ” freely without payment” upload to your social media site?

I would like to thank a fellow

European Commission and EIROforum pledge to ex...

European Commission and EIROforum pledge to extend collaboration (Photo credit: European Southern Observatory)

WordPress website for their information that was utilised at http://lexpertblog.com should you like to read more on this subject.

 

#facebook, #locog, #london, #london-organising-committee-of-the-olympic-games-and-paralympic-games, #olympic-games, #social-media, #twitter, #wordpress

Foreclosure Review Offers Big Payout, But Few are Asking for It

Have you applied for your refund yet! Please also share this too as many people as possible to get theirs!

Social Housing Dropped In Favour Of New Lending Policy

Taxes

Taxes (Photo credit: Tax Credits)

Whenever l read a post that says – We are here to improve or provide better ways to help you! My alarm bell’s say be careful look at the real picture at what they are not saying, not what they are!

Well this article says be careful !

Ministers are studying plans to boost house building by lending publicly owned land to developers and relaxing requirements for building schemes to include social housing. The recommendations are expected to be made in a report by Sir Adrian Montague. Under the changes, the government and local authorities would “invest” land they own with private developers or housing associations, which say they can raise money to build homes but cannot afford to buy land as well. The state would be repaid when the completed developments were sold to institutions such as pension funds, which have indicated they want steady income from rents but cannot take the risk of development or wait for their pay-back during the building phase. To further encourage developers, councils could be urged to relax requirements for developers to build social as well as private housing; in return, they would have to agree that the rented homes could not be sold privately for a minimum period.

So what is the real story and how is it hidden from our view, well simply it is too good to be true! Also it is the tax payer once again that will pay for both giving the land owned by them and also funding the building costs.

Let us cover the first part giving the developer’s land, they have aptly called,lending them publicly owned land! That is “give” for no payment then adding to include social housing, as a way to placate us. The fact it is given        ” free and gratis” does not really get too much of a mention. They go onto say we will invest [give] land to private developers and or housing associations, mention of private sets the antennae really ringing. Anything private or PFi says profit and the only reason this government would give land to private developers,is profit for them and not the taxpayer!

The next part is even better it goes onto say that once they are built and sold for rental to pension funds that have indicated they want a steady income! Again more private companies that invested taxpayers hard earned money into pension funds and then using various investments, into commercial managed property portfolios,lost it all and had to reduce people’s pensions. Does anyone remember the 1980’s Serp‘s ” State Earnings-Related Pension Scheme” well this was replaced by ” State Second Pension” but very few people realise it was used for paying unemployment benefit and had to be replaced.

So l see this as ” History Repeating  itself as private companies giving to private companies means nothing for the taxpayer but profits for the developer, pension funds and rental companies.

So who takes the risk? The taxpayer not the government as they will get paid back when the development is completed, as they do not want to take the risk!

So even the risk is to be taken by the taxpayer and the profit is to be taken by the private companies. So this is a no risk no payment and good return for this governments ” Cash for Contracts” supporters!

#business-and-economy, #housing-association, #housing-benefit, #leasehold-estate, #pension, #private-rented-sector, #property, #public-housing