It was interesting to read that Manchester United Football Club has been floated on the New York Stock Exchange. Manchester United is a heavily indebted soccer club. The Glazer family who own the club borrowed the money to buy the club, then transferred the debt onto the club. Assuming that any money made from the flotation will go to the Glazer family, the debt will be transferred to the share owners. I wonder whether anybody buying the shares are aware that what they are buying is actually a share or shares of the debt?
Good Bye and Good Luck to them and the rest of until the next time. Sleep well
Knight Owl
Friday, 10 August 2012
Sunday, 17 June 2012
National and International Challenges
We are living in a world in turmoil, besieged by economic, social and political problems; and in our attempt to solve them, we are creating a bigger mess. We, human beings, are the most dysfunctional creatures that has ever walked the cosmos. We have been endowed with intelligence but we show such incompetence to use it for the benefit of our race. Could it be because of our selfishness and greed? Whether as individuals, social groups or nations we show a strong tendency towards selfishness and greed.
As individuals not only do we strive to protect our personal space and belongings, we crush anyone or anything around us to acquire more. What we can't acquire we destroy because we do not want the next person to have it. Some of us have heaps more than we need and in doing so we deprive others of their needs. Some of the richest people and nations have such excess that they will only be able to use a tiny fraction for themselves. With this excess, however, they could fulfil the needs of the rest of the worlds poor. We do the same as social groups and as nations. We live on a beautiful planet that has everything we need, but for reasons of selfishness and greed we are intent on destroying it and ourselves. What lunacy! What a race of selfish and greedy predators! We are no better than any other animal in this world despite our higher intelligence.
In the UK, we are having the Leveson Inquiry looking into political malpractice fuelled by selfishness and greed from all sides. It is about one media mogul and his political influence using any means to acquire more and more. Politicians of all parties seems to be involved. It is a public inquiry, publicly broadcast, so if you can get access to it, certainly have a look and be your own jury. Lord Judge Leveson will give his own verdict anyway, so you may wish to wait for that.
In Egypt, we have an unprecedented presidential election this weekend. Will the outcome make a big difference? Will the partisans supporting the different ideologies be able to put their differences aside and create together a happy and convivial Egypt? We shall have to wait and see.
Greek elections are also due today. Will the outcome produce a stable and prosperous Greece and a strong collective nations of Europeans under one currency living and sharing happily together? I am sure we can all predict what is likely to happen, but again let us wait and see. Whether Greece leaves the Euro or stick with it, the Euro is in dire trouble. The main reason is that although there is a European Union in name and a single currency, the is no monetary union as such. There is still a predatory approach where countries like Germany and France are selfishly protecting their own economy, citizens and industry and creating dependence on the others. The UK is part of the EU but has kept its own currency. It, therefore, is not directly affected by the Euro and although selfishly protecting itself, is also feeling the European backlash.
Another policy issue that politicians can never get right is the issue of immigration. They always end up creating an us and them scenario that leads to disharmony and animosity. Mr Obama is trying to woo voters with his stance.
In the UK, Home Secretary May has come up with this ludicrous idea that immigrants can only bring their partners or families to the UK, if the earn above a certain limit. If these immigrants are legal should they not be on the same wage as the people of the UK. And if UK citizens can support their families on such wages why can't the immigrants do so? Or is there a hidden pay policy between the UK government and Employers that is using low paid immigrant workers in an attempt to face the economic downturn and/or boost their profit margins? The government claims that this policy reduces immigrants dependence on the state. If we allow immigrants, should we not not give work visas to those who are less likely to seek state benefits over and above that required by other workers.
Unfortunately, the immigration issue is more complex in the UK. Residents from other EU countries can immigrate to the UK freely and they do not need visas, or means of support such as an adequately paid employment. These are the immigrants who are then dependent on the state for state benefits; and the UK government cannot do anything about it. They are not making this clear. They are, therefore, creating hatred and animosity between UK population and non-European immigrants. Non-European immigrants are generally not the indolent people politicians of all parties paint them out to be. I wish they do not project their incompetence to these innocent and hard-working people.
Politicians never learn. We go from one disaster to another. History proves this time and time again. We resort to wars; we find a pertinent cause that can bring people together and distract them form our man-made mess. Can we trust our politicians to get it right? After all, they are not on the breadline; they are all well-heeled and so are their friends; unlike most of the people they govern.
Oh What a Mess!!
Good Luck and Good Bye until the next time.
Knight Owl
We are living in a world in turmoil, besieged by economic, social and political problems; and in our attempt to solve them, we are creating a bigger mess. We, human beings, are the most dysfunctional creatures that has ever walked the cosmos. We have been endowed with intelligence but we show such incompetence to use it for the benefit of our race. Could it be because of our selfishness and greed? Whether as individuals, social groups or nations we show a strong tendency towards selfishness and greed.
As individuals not only do we strive to protect our personal space and belongings, we crush anyone or anything around us to acquire more. What we can't acquire we destroy because we do not want the next person to have it. Some of us have heaps more than we need and in doing so we deprive others of their needs. Some of the richest people and nations have such excess that they will only be able to use a tiny fraction for themselves. With this excess, however, they could fulfil the needs of the rest of the worlds poor. We do the same as social groups and as nations. We live on a beautiful planet that has everything we need, but for reasons of selfishness and greed we are intent on destroying it and ourselves. What lunacy! What a race of selfish and greedy predators! We are no better than any other animal in this world despite our higher intelligence.
In the UK, we are having the Leveson Inquiry looking into political malpractice fuelled by selfishness and greed from all sides. It is about one media mogul and his political influence using any means to acquire more and more. Politicians of all parties seems to be involved. It is a public inquiry, publicly broadcast, so if you can get access to it, certainly have a look and be your own jury. Lord Judge Leveson will give his own verdict anyway, so you may wish to wait for that.
In Egypt, we have an unprecedented presidential election this weekend. Will the outcome make a big difference? Will the partisans supporting the different ideologies be able to put their differences aside and create together a happy and convivial Egypt? We shall have to wait and see.
Greek elections are also due today. Will the outcome produce a stable and prosperous Greece and a strong collective nations of Europeans under one currency living and sharing happily together? I am sure we can all predict what is likely to happen, but again let us wait and see. Whether Greece leaves the Euro or stick with it, the Euro is in dire trouble. The main reason is that although there is a European Union in name and a single currency, the is no monetary union as such. There is still a predatory approach where countries like Germany and France are selfishly protecting their own economy, citizens and industry and creating dependence on the others. The UK is part of the EU but has kept its own currency. It, therefore, is not directly affected by the Euro and although selfishly protecting itself, is also feeling the European backlash.
Another policy issue that politicians can never get right is the issue of immigration. They always end up creating an us and them scenario that leads to disharmony and animosity. Mr Obama is trying to woo voters with his stance.
In the UK, Home Secretary May has come up with this ludicrous idea that immigrants can only bring their partners or families to the UK, if the earn above a certain limit. If these immigrants are legal should they not be on the same wage as the people of the UK. And if UK citizens can support their families on such wages why can't the immigrants do so? Or is there a hidden pay policy between the UK government and Employers that is using low paid immigrant workers in an attempt to face the economic downturn and/or boost their profit margins? The government claims that this policy reduces immigrants dependence on the state. If we allow immigrants, should we not not give work visas to those who are less likely to seek state benefits over and above that required by other workers.
Unfortunately, the immigration issue is more complex in the UK. Residents from other EU countries can immigrate to the UK freely and they do not need visas, or means of support such as an adequately paid employment. These are the immigrants who are then dependent on the state for state benefits; and the UK government cannot do anything about it. They are not making this clear. They are, therefore, creating hatred and animosity between UK population and non-European immigrants. Non-European immigrants are generally not the indolent people politicians of all parties paint them out to be. I wish they do not project their incompetence to these innocent and hard-working people.
Politicians never learn. We go from one disaster to another. History proves this time and time again. We resort to wars; we find a pertinent cause that can bring people together and distract them form our man-made mess. Can we trust our politicians to get it right? After all, they are not on the breadline; they are all well-heeled and so are their friends; unlike most of the people they govern.
Oh What a Mess!!
Good Luck and Good Bye until the next time.
Knight Owl
Friday, 8 June 2012
The Austere European Economic Crisis
The European economic crisis is likely to drag the rest of the world economy with it, on the way to another 1930s style depression, if allowed to continue unchallenged. The austerity measures being applied across Europe is reducing economic growth rather than stimulating it. Mr Cameron, the UK Prime Minister, is deluded in thinking that austerity stimulates growth. Ms Merkel, the German Chancellor, on the other hand, is only protecting the German economy but the Germans are paying a heavy price for it even though it is not reflecting in their economy at present.
If the present austerity measures along with protecting the Euro continues, growth is Greece, Spain, Portugal, Italy and the Republic of Ireland will continue to falter with continued demands to be bailed out by the rest of the Eurozone. The bulk of this bailing out will come from the Central European Bank supported by Germany and France in the main. The disastrous consequence will first be felt in France followed by Germany and their economy will join the downward trend. This will quickly spread to China, India and the USA and the rest of the world will follow in turn.
President Obama is the only world leader who has shown the recognition that the austerity measures are having a negative effect on the economy. On his own however, he cannot make a big difference. The US economy will grow up to a certain extent but when the rest of it trade partners cannot trade with it because of the austerity measures, its Growth will hit the buffers. The same thing will happen in Germany and France because, although they have the infrastructure to manufacture goods, no one will be able to afford to buy these goods. When this happens they will have to cut back and their growth will also hit the buffers. China, India and the rest of the world will be dragged with Europe and the USA.
The Greek elections due in a week or so may change what happens in Europe if the anti austerity party wins and does what is preaches. Changes in Europe, if that happens, will hasten the turmoil and how we come out of it will depend on political leadership. Is Ms Merkel likely to change her policies to fit in with the anti austerity measures? Mr Cameron is only a side player and up to now he has not shown any understanding of this crisis. Mr Holland has not shown his colours. Who is going to take the lead, take the bull by the horn, and steer away from austerity and towards growth. Who is learning from the USA and the Obama government handling of the economy?
The politicians and some economists say we can't spend our way out of the recession. If we can't spend, who will buy the goods and services that industry delivers? What happens then; industrial slowdown and eventually meltdown. The result bust not boom. No tax receipts, no revenue and more state support and benefit. Where will the funds come from? It does not take a genius to figure out what happens next; and all our politicians are supposed to be well educated. In Britain, the Majority of our Cabinet Ministers are Oxford graduates (maybe there lies the problem).
It can be done. It will need strong leadership and it calls for unity and not putting ones own country first. A level playing field is required for the whole of Europe. Convergence instead of divergence is called for. The richer European countries will have to be charitable in helping their poorer neighbours and they will all have to adopt an anti austerity policy and the state will have to take the lead. Private enterprise do not share the values that is likely to promote national, continental and global growth.
Good Luck and Good Bye until the next time.
Knight Owl
If the present austerity measures along with protecting the Euro continues, growth is Greece, Spain, Portugal, Italy and the Republic of Ireland will continue to falter with continued demands to be bailed out by the rest of the Eurozone. The bulk of this bailing out will come from the Central European Bank supported by Germany and France in the main. The disastrous consequence will first be felt in France followed by Germany and their economy will join the downward trend. This will quickly spread to China, India and the USA and the rest of the world will follow in turn.
President Obama is the only world leader who has shown the recognition that the austerity measures are having a negative effect on the economy. On his own however, he cannot make a big difference. The US economy will grow up to a certain extent but when the rest of it trade partners cannot trade with it because of the austerity measures, its Growth will hit the buffers. The same thing will happen in Germany and France because, although they have the infrastructure to manufacture goods, no one will be able to afford to buy these goods. When this happens they will have to cut back and their growth will also hit the buffers. China, India and the rest of the world will be dragged with Europe and the USA.
The Greek elections due in a week or so may change what happens in Europe if the anti austerity party wins and does what is preaches. Changes in Europe, if that happens, will hasten the turmoil and how we come out of it will depend on political leadership. Is Ms Merkel likely to change her policies to fit in with the anti austerity measures? Mr Cameron is only a side player and up to now he has not shown any understanding of this crisis. Mr Holland has not shown his colours. Who is going to take the lead, take the bull by the horn, and steer away from austerity and towards growth. Who is learning from the USA and the Obama government handling of the economy?
The politicians and some economists say we can't spend our way out of the recession. If we can't spend, who will buy the goods and services that industry delivers? What happens then; industrial slowdown and eventually meltdown. The result bust not boom. No tax receipts, no revenue and more state support and benefit. Where will the funds come from? It does not take a genius to figure out what happens next; and all our politicians are supposed to be well educated. In Britain, the Majority of our Cabinet Ministers are Oxford graduates (maybe there lies the problem).
It can be done. It will need strong leadership and it calls for unity and not putting ones own country first. A level playing field is required for the whole of Europe. Convergence instead of divergence is called for. The richer European countries will have to be charitable in helping their poorer neighbours and they will all have to adopt an anti austerity policy and the state will have to take the lead. Private enterprise do not share the values that is likely to promote national, continental and global growth.
Good Luck and Good Bye until the next time.
Knight Owl
Sunday, 25 December 2011
Christmas An New Year Wishes
We have had a gloomy couple of years with the financial crisis that is continuing to cause global concern and downturn in GDP. It is now even affecting China, India and Brazil. They may still be growing but the rate of growth is slowing down all the same.
This goes to show that the economic policies and strategies that are being used are not really working. Let's not be too cheered up with the minimal growth that appears as bumps in the road because we are nowhere on the way to recovery. However, with the appropriate policies we can be. Let's not continue to only feed the banks that caused the problems but let us support consumers to achieve growth.
It can be done and the sooner we support consumers the sooner growth will return. WE can spend our way out of this recession regardless of the current belief that we cannot. Strong consumer effect can get industry working again; without it industry will continue to struggle. We, therefore need to increase consumers spending power. This can be done in several ways; a reduction in purchase or value added tax, an increase in wages and job creation in the service industry and public sectors as well as promoting growth in private industry. This can be easily achieved by quantitatively easing consumers instead of the banks and financial institutions. Consumers in their turn can and will quantitatively ease industry, the banks and the financial institutions.
A farming analogy is apt at this point. Your land is not going to give you a good harvest if you just throw tons of seeds on arid land. By clearing weeds, and giving your plants, sufficient room to grow in with adequate amounts of water and fertiliser, they will give you a more abundant harvest. Unfortunately our modern politicians no longer come from a solid industry or work related background. Their life experience consists of nothing but a protected upbringing having only experienced theories about life and economics during their academic years and their friendship with financial institutions or their financial supporters. Alas poor us and we have voted them in.
There is only one solution out of this economic downturn and that is
SPENDING OUR WAY OUT OF IT and IT WILL WORK.
Best Wishes.
Good luck and Good Bye until the next time.
Knight Owl.
This goes to show that the economic policies and strategies that are being used are not really working. Let's not be too cheered up with the minimal growth that appears as bumps in the road because we are nowhere on the way to recovery. However, with the appropriate policies we can be. Let's not continue to only feed the banks that caused the problems but let us support consumers to achieve growth.
It can be done and the sooner we support consumers the sooner growth will return. WE can spend our way out of this recession regardless of the current belief that we cannot. Strong consumer effect can get industry working again; without it industry will continue to struggle. We, therefore need to increase consumers spending power. This can be done in several ways; a reduction in purchase or value added tax, an increase in wages and job creation in the service industry and public sectors as well as promoting growth in private industry. This can be easily achieved by quantitatively easing consumers instead of the banks and financial institutions. Consumers in their turn can and will quantitatively ease industry, the banks and the financial institutions.
A farming analogy is apt at this point. Your land is not going to give you a good harvest if you just throw tons of seeds on arid land. By clearing weeds, and giving your plants, sufficient room to grow in with adequate amounts of water and fertiliser, they will give you a more abundant harvest. Unfortunately our modern politicians no longer come from a solid industry or work related background. Their life experience consists of nothing but a protected upbringing having only experienced theories about life and economics during their academic years and their friendship with financial institutions or their financial supporters. Alas poor us and we have voted them in.
There is only one solution out of this economic downturn and that is
SPENDING OUR WAY OUT OF IT and IT WILL WORK.
Best Wishes.
Good luck and Good Bye until the next time.
Knight Owl.
Tuesday, 13 December 2011
Solving the Euro Crisis
The meeting of leaders of European Economic Community went ahead last Thursday night, 26 countries joining forces to tackle the problem and the United Kingdom, or Mr David Cameron, decided to stand on the sidelines. Does this, therefore, mean that the Euro is going to survive or is it heading for its demise; particularly as the rumours in the British press is suggesting that the German government is printing Deutsche Marks as a precaution.
In my opinion, the Euro can survive and is likely to become stronger as a result of the current crisis. However, to make this happen, the 26 countries need to explore some policy changes alongside harmonising taxation and regulation of the finance industry. In the main, for the benefit of all the Eurozone countries, the Euro needs to be devalued by 10%. There is likely to be some disadvantages of taking this approach, but the benefits will be much greater, and far outweigh the disadvantages.
The advantages of devaluing the Euro will benefit all the 17 Eurozone countries and also the remaining 9 or 10 if the United Kingdom decides to join the club. It will help enhance growth by making it easier to export goods produced in the Eurozone as it will be cheaper for none Eurozone countries to import these goods. It may increase the cost of imports but if played well home produced goods will become more attractive to consumers. It will also be enjoyed by local and Eurozone consumers. Therefore, growth will increase further adding to GDP. More demand will create more jobs, and more people working will increase tax revenue. There has been a decline in industries producing white goods in Europe, this can be rectified and these goods can be rolled out locally at a competitive price. Europe will once again take pride of place in the world markets.
France and Germany has already got an industrial base and so has some of the newer countries that have joined the European Economic Community. Some countries have allowed there industries to collapse; it will be an opportunity to redevelop them. The Eurozone governments can also harmonise corporation tax to enable varied and appropriate industries develop in all areas of the Eurozone and European Economic Community as long as they all co operate to make this work. The corporation tax can also be tailored to be competitive with other industrial nations. The Eurozone countries should also assist poorer former dependencies to participate with them in making this plan work. They can create additional jobs is these former dependencies and also agree favourable trade deals.
The world as a whole will benefit. However, we need someone to have sufficient courage and conviction to make this happen. Someone to be prepared to take the risk and have the authority and wherewithal to make it happen. It can work and will work; action speaks louder than words. Meetings on their own are not going to solve the problem, action will. Let's hope somebody is brave enough to take the steering wheel and guide this train in the right direction. ACTION is needed now not next year or the year after, if we do not want to look back at at the next ten years as a lost decade.
Good Luck and Good Bye until the next time.
Knight Owl
In my opinion, the Euro can survive and is likely to become stronger as a result of the current crisis. However, to make this happen, the 26 countries need to explore some policy changes alongside harmonising taxation and regulation of the finance industry. In the main, for the benefit of all the Eurozone countries, the Euro needs to be devalued by 10%. There is likely to be some disadvantages of taking this approach, but the benefits will be much greater, and far outweigh the disadvantages.
The advantages of devaluing the Euro will benefit all the 17 Eurozone countries and also the remaining 9 or 10 if the United Kingdom decides to join the club. It will help enhance growth by making it easier to export goods produced in the Eurozone as it will be cheaper for none Eurozone countries to import these goods. It may increase the cost of imports but if played well home produced goods will become more attractive to consumers. It will also be enjoyed by local and Eurozone consumers. Therefore, growth will increase further adding to GDP. More demand will create more jobs, and more people working will increase tax revenue. There has been a decline in industries producing white goods in Europe, this can be rectified and these goods can be rolled out locally at a competitive price. Europe will once again take pride of place in the world markets.
France and Germany has already got an industrial base and so has some of the newer countries that have joined the European Economic Community. Some countries have allowed there industries to collapse; it will be an opportunity to redevelop them. The Eurozone governments can also harmonise corporation tax to enable varied and appropriate industries develop in all areas of the Eurozone and European Economic Community as long as they all co operate to make this work. The corporation tax can also be tailored to be competitive with other industrial nations. The Eurozone countries should also assist poorer former dependencies to participate with them in making this plan work. They can create additional jobs is these former dependencies and also agree favourable trade deals.
The world as a whole will benefit. However, we need someone to have sufficient courage and conviction to make this happen. Someone to be prepared to take the risk and have the authority and wherewithal to make it happen. It can work and will work; action speaks louder than words. Meetings on their own are not going to solve the problem, action will. Let's hope somebody is brave enough to take the steering wheel and guide this train in the right direction. ACTION is needed now not next year or the year after, if we do not want to look back at at the next ten years as a lost decade.
Good Luck and Good Bye until the next time.
Knight Owl
Friday, 9 December 2011
Euro Zone Crisis
Although this is referred as a Eurozone crisis, it is a Global Economic crisis but some nations are trying to see themselves as being out of it. Even Europe, particularly the countries in the European Economic Community who do not have the Euro as their Currency are seeing themselves as being separate from this crisis. This being so, the Eurozone countries should work to protect themselves and their interests and let Europe and and the rest of the world flounder.
The crisis in the European Economic Community, particularly the Euro zone is getting worse. The politicians are trying to stop the Euro crashing down the cliff and disappearing like Atlantis. Hence the meeting yesterday in Marseille and last night and today in Brussels. The problem is solvable but how likely are to solve it? It depends on whether they work in the interest of the European Economic Community or National (Self) interest. When I refer to interest of the European Economic Community, I mean the all the people that form that community and not individual nations, the politicians or their masters the financiers.
The peculiar set up of the European Economic Community into Euro and none Euro zones is also adding to the problem because the none Euro zone countries are trying to protect their own currency and markets thus adding extra pressure to the Euro and the Euro zone countries. The English Media and Euro-sceptic members of the conservative party are acting as doom mongers and praying for the Euro to fail. They have asked David Cameron, a financier by birth and upbringing, to protect the financiers and stab the Merkozy plan to death so that they can dance round the funeral pyre of the Euro as a result.
In my opinion, if all the countries in the European Economic Community cannot agree to a consensual agreement, then the 17 Eurozone countries should work together as a Eurozone Community to defeat this crisis and save the Euro. It is going to make them and the Euro a lot stronger in years to come. The none Eurozone countries of the European Economic Community should remain on the fringe and stop interfering in the progress of the rest. If it means a two tier European Economic Community, an inner sanctum and an outer sanctum, so be it.
The Eurozone Community should start by working together by creating a level field where all 17 nations can work and play under the same rules. The referees should also come from the Eurozone Community and not from the none Eurozone Community for fear of undue interference. They should start by halving the European Commission Budget. The European Economic Community (and the nations in it) and the people are more important than a bunch of overpaid, over-privileged, bureaucrats who spend their time giving the impression that they are members of a special cosy gentleman's club instead of a bunch of civil servants serving the European Economic Community. After all most of the people are having to contribute towards the deficit and are subject to austerity measures. They are facing higher taxes, lower wages and increasing living costs.
The bankers and financiers should also be treated in the same way. They are the ones who got us in this mess and they are still walking with their heads in the air and their hands in their reinforced pockets, jingling their lose change, and whistling "what a happy day". They will also have to contribute to the deficits, but all we have done is lined their reinforced pockets with quantitative easings and taxed the nation a bit more. Do not be taken in by and give in to their threats. Whether it is Standard and Poor or David Cameron, they are just a bunch of financiers protecting their own interests.
The Eurozone problem is solvable and it can be solved. As a Community let us stand together and fight the predators whoever they may be and wherever they may come from. Let us work together, share the pain together and we can then savour the joy together. Also remember, we are all in together, everybody including the financiers, the politicians, the privileged bureaucrats and the people that is the community (and the nations). For now we must all suffer the austerity in equal measures and later as a result of our hard work share the gains equally.
Good luck and good bye until the next time
Knight Owl.
The crisis in the European Economic Community, particularly the Euro zone is getting worse. The politicians are trying to stop the Euro crashing down the cliff and disappearing like Atlantis. Hence the meeting yesterday in Marseille and last night and today in Brussels. The problem is solvable but how likely are to solve it? It depends on whether they work in the interest of the European Economic Community or National (Self) interest. When I refer to interest of the European Economic Community, I mean the all the people that form that community and not individual nations, the politicians or their masters the financiers.
The peculiar set up of the European Economic Community into Euro and none Euro zones is also adding to the problem because the none Euro zone countries are trying to protect their own currency and markets thus adding extra pressure to the Euro and the Euro zone countries. The English Media and Euro-sceptic members of the conservative party are acting as doom mongers and praying for the Euro to fail. They have asked David Cameron, a financier by birth and upbringing, to protect the financiers and stab the Merkozy plan to death so that they can dance round the funeral pyre of the Euro as a result.
In my opinion, if all the countries in the European Economic Community cannot agree to a consensual agreement, then the 17 Eurozone countries should work together as a Eurozone Community to defeat this crisis and save the Euro. It is going to make them and the Euro a lot stronger in years to come. The none Eurozone countries of the European Economic Community should remain on the fringe and stop interfering in the progress of the rest. If it means a two tier European Economic Community, an inner sanctum and an outer sanctum, so be it.
The Eurozone Community should start by working together by creating a level field where all 17 nations can work and play under the same rules. The referees should also come from the Eurozone Community and not from the none Eurozone Community for fear of undue interference. They should start by halving the European Commission Budget. The European Economic Community (and the nations in it) and the people are more important than a bunch of overpaid, over-privileged, bureaucrats who spend their time giving the impression that they are members of a special cosy gentleman's club instead of a bunch of civil servants serving the European Economic Community. After all most of the people are having to contribute towards the deficit and are subject to austerity measures. They are facing higher taxes, lower wages and increasing living costs.
The bankers and financiers should also be treated in the same way. They are the ones who got us in this mess and they are still walking with their heads in the air and their hands in their reinforced pockets, jingling their lose change, and whistling "what a happy day". They will also have to contribute to the deficits, but all we have done is lined their reinforced pockets with quantitative easings and taxed the nation a bit more. Do not be taken in by and give in to their threats. Whether it is Standard and Poor or David Cameron, they are just a bunch of financiers protecting their own interests.
The Eurozone problem is solvable and it can be solved. As a Community let us stand together and fight the predators whoever they may be and wherever they may come from. Let us work together, share the pain together and we can then savour the joy together. Also remember, we are all in together, everybody including the financiers, the politicians, the privileged bureaucrats and the people that is the community (and the nations). For now we must all suffer the austerity in equal measures and later as a result of our hard work share the gains equally.
Good luck and good bye until the next time
Knight Owl.
Thursday, 24 November 2011
Work Related Pensions
Public Service Unions have called for and a majority of their members have voted to strike on the 30th of November 2011. This is in response to the UK government's plan to increase public sector workers contributions towards their employment pensions, the age at which they can retire and reduce the value of their pensions. The government argues that this is already the case in the private sector and they are creating a level playing field.
This is true to a certain extent but is this right? There is already a discrepancy between employees pensions in both the public and private sectors. Management staff have better pension arrangements in both sectors, as well as, having bigger pay packets and higher annual pay increases. They can also retire earlier. In the private sector the gap between management pensions and employees pensions is even more pronounced.
In my opinion, all employees have a right to decent employment pension. They should not rely on or expect the state to subsidise their pensions through "old age pensions". They should also not have to wait to receive their pensions until they are to old to enjoy the fruit of their labour. Otherwise, any pension they receive will only go towards paying their "care home bills".
Employment pensions, particularly in the private sector, have in the main failed because of abuse of pension funds by some private sector companies and pension fund managers. During the 1980s and 1990s many private companies misused pension funds as capital investments or used it as loans to bail themselves out during financial difficulties. Very often they were not able to put the funds and interests back in the pension pot. Even now, pension fund managers are not only earning extremely large sums but also taking increasingly larger sums in bonuses regardless of the performance of pension funds being managed. [One such person appearing on UK television, this week, claimed she is worth more than the pension fund contributors.] They are, therefore, receiving proportionally higher returns on the investments than the people contributing toward their pensions. Pension contributors have lost out in the past and they are still losing out; and this, particularly, include public sector workers and lower to middle earners in the private sector. They are subsidising the state through taxes, subsidising pension fund managers luxurious lifestyles and disproportionately boosting private sector profits and entrepreneurs and shareholders dividends.
The current proposed system of employment pensions, whether in the private or public sector is both unjust and highly regressive. There is a rational solution, but it is unlikely to be adopted as most governments have and share monetarist views and are supported in their position of power by capitalist funds. The solution is simple. Employment pensions and pension funds for both the private and the public sectors should be managed and regulated by the state. There should also be a truly independent audit system in place. It should not be abused or misused and fund managers should only receive adequate, not exorbitant, remunerations. Employees should contribute an agreed percentage of their salaries, with a similar arrangement for employers. The retirement age should be the same for managers and other employees. The pension to salary ratio should also be comparable.
To put it simply, there should be a universal employment pension system for all. It should be a right and enshrined in law. And similarly everyone should have a right to employment. However, this is unlikely to happen in the UK. The UK government is hell bent on punishing public sector workers for the financial problem created by greedy bankers who are going scot free and still enjoying huge wages and bonuses. This is lunacy. Is it because senior politicians in the UK government come from banking and financial institution background? Readers you can be the judge.
Good luck and good bye until the next time.
Knight Owl
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