China is a growing economy, apparently the fastest growing Asian country at the moment. They are buying up all the metals in the world, huge quantities of scrap, in fact huge quantities of everything. So what are they doing with all these materials?
They are building towns & cities, roadways and infrastructure routes, shopping centres and business parks. So who are all the people who are populating these new settlements? Well, that's the problem. There aren't any!
All these new locations are empty and the reason why is the average wage is $2 a day, so the people cannot afford to move in.
Now how do we know about this? Some of these locations are now being dismantled so that the resources can be used elsewhere. This unfortunately can only lead to trouble on the streets and as we know with the history of the east, when people without guns meet people with them, there is only one result.
Going one step further, North Korea today [7-Mar-2013] has closed the communication line to the west that has been open for over 60 years. This is not a tantrum, and while the media are making a big thing of camouflage on public transport and public rallies in support of leadership, the most important point is lack of communication. Both sides are performing exercises at the moment and if one of those exercises touches another, there is now no way to scale back the operation, which means an automatic escalation.
This is not a good position to be in...
Friday, 8 March 2013
Thursday, 7 March 2013
Vince Cable
Has written an article in the New Statesman called “When the facts change, should I change my mind? ”
The media have summed it up as the Business Secretary's dramatic suggestion that the government should borrow for growth, the media of course will try and show that he and the PM are at odds, but as they are interviewed today, they will both probably just smooth things over.
However, is he right?
Stock markets have continued to take off in recent weeks. The UK and US markets are now back where they were before the 2008 crisis, having risen more than 9% since the start of the year. The record level of the Dow Jones industrial index, and the very close-to-record level of the much more important S&P 500 index, are partly a reflection of the good news that has been coming out of the US economy.
The UK markets are at a similar level only the pound is suffering at the moment, with a million new jobs being created in the last four years and albeit stagnant growth, most of this has been achieved because of base interest rates being held at 0.5%. This situation cannot last, as about two-thirds of the earnings of the companies in the FTSE come from outside the UK.
Sooner or later we do need the real economy to start to catch up with all these enthusiastic investors, otherwise those stock prices might very well come back down to earth.
The media have summed it up as the Business Secretary's dramatic suggestion that the government should borrow for growth, the media of course will try and show that he and the PM are at odds, but as they are interviewed today, they will both probably just smooth things over.
However, is he right?
Stock markets have continued to take off in recent weeks. The UK and US markets are now back where they were before the 2008 crisis, having risen more than 9% since the start of the year. The record level of the Dow Jones industrial index, and the very close-to-record level of the much more important S&P 500 index, are partly a reflection of the good news that has been coming out of the US economy.
The UK markets are at a similar level only the pound is suffering at the moment, with a million new jobs being created in the last four years and albeit stagnant growth, most of this has been achieved because of base interest rates being held at 0.5%. This situation cannot last, as about two-thirds of the earnings of the companies in the FTSE come from outside the UK.
Sooner or later we do need the real economy to start to catch up with all these enthusiastic investors, otherwise those stock prices might very well come back down to earth.
Banker's bonuses
George Osborne the Chancellor of the Exchequer is up against it in Europe at the moment as he stands alone against 26 countries who want the salary / bonus cap to go ahead.
His objection of all financial services will leave Europe was not believed by the others, as they consider it is politically accepted by all residents of Europe.
The EU is proposing to cap bonuses to 100% of a banker's annual salary, or to 200% if shareholders approve. There will be further talks, but all other countries backed the plan.
His objection of all financial services will leave Europe was not believed by the others, as they consider it is politically accepted by all residents of Europe.
The EU is proposing to cap bonuses to 100% of a banker's annual salary, or to 200% if shareholders approve. There will be further talks, but all other countries backed the plan.
Wednesday, 6 March 2013
NHS joke
OMG Sir David Nicholson is still in his job!
How many more peple have to die before he is sacked?
How many more peple have to die before he is sacked?
Tuesday, 5 March 2013
Funding for lending fails
Why?
Well the statement comes from a quarterly report, the last 3 months of 2012, and only 3 months after the fund started, so is it fair?
The BoE bank announced the scheme jointly with the government in June 2012, as a way to unblock a credit log-jam which some economists say is a big factor behind Britain's weak economic recovery. However, banks and building societies cut lending by a net £2.4bn between October and December.
The BoE has consistently tried to encourage banks to lend, but after Basel III the banks have to keep more cash on hand in order to prevent another 2008 financial crisis.
So what is the happy medium?
Stop kicking the banks. When they have bolstered their balances, I am sure they will be more than willing to lend to business of all sizes and even governments again.
Well the statement comes from a quarterly report, the last 3 months of 2012, and only 3 months after the fund started, so is it fair?
The BoE bank announced the scheme jointly with the government in June 2012, as a way to unblock a credit log-jam which some economists say is a big factor behind Britain's weak economic recovery. However, banks and building societies cut lending by a net £2.4bn between October and December.
The BoE has consistently tried to encourage banks to lend, but after Basel III the banks have to keep more cash on hand in order to prevent another 2008 financial crisis.
So what is the happy medium?
Stop kicking the banks. When they have bolstered their balances, I am sure they will be more than willing to lend to business of all sizes and even governments again.
Monday, 4 March 2013
Roman Catholic religion crisis
The heading is a bit misleading.
The head of the Catholic Church in Scotland, Cardinal Keith O'Brien resigns, admits to sexual impropriety and apologises.
Now we have had in the past the huge paedophile scandal of thousands of children, the Magdalene laundry girls scandal, and now someone who has publicly condemned homosexuality being caught out in the act.
Pope Benedict XVI accepted the resignation of Cardinal Keith O'Brien after allegations of inappropriate behaviour were made against him. This means O'Brien won't attend the upcoming Vatican conclave to elect the Pope's successor.
However, while I am sad for the 1 billion Catholics round the world, and I appreciate their faith is being tested more than usual, I cannot believe that a thousand year old religion is going to fail over night. Do you really think these people will just stop practicing what they do because of some dodgy geezers at the top? It is not the religion that is bad but corrupt officials who administer it.
The head of the Catholic Church in Scotland, Cardinal Keith O'Brien resigns, admits to sexual impropriety and apologises.
Now we have had in the past the huge paedophile scandal of thousands of children, the Magdalene laundry girls scandal, and now someone who has publicly condemned homosexuality being caught out in the act.
Pope Benedict XVI accepted the resignation of Cardinal Keith O'Brien after allegations of inappropriate behaviour were made against him. This means O'Brien won't attend the upcoming Vatican conclave to elect the Pope's successor.
However, while I am sad for the 1 billion Catholics round the world, and I appreciate their faith is being tested more than usual, I cannot believe that a thousand year old religion is going to fail over night. Do you really think these people will just stop practicing what they do because of some dodgy geezers at the top? It is not the religion that is bad but corrupt officials who administer it.
Friday, 1 March 2013
Iran's Plan B
Rumours abound about an old facility in Iran that has been revamped and currently being feed huge quantities of heavy water in order to develop a second plant to produce plutonium.
This is not good.
Inspectors from the International Atomic Energy Agency have been unable to visit the facility since August 2011 and Iran has refused repeated requests for information about the site, which is 150 miles south-west of the capital, Tehran.
The details of Iran’s plutonium programme emerged as the world’s leading nations resumed talks with Tehran aimed at allaying fears over the country’s nuclear ambitions.
The Institute for Science and International Security says if the heavy-water plant reaches full capacity, it would produce about 20lb of plutonium a year.
This is not good.
Inspectors from the International Atomic Energy Agency have been unable to visit the facility since August 2011 and Iran has refused repeated requests for information about the site, which is 150 miles south-west of the capital, Tehran.
The details of Iran’s plutonium programme emerged as the world’s leading nations resumed talks with Tehran aimed at allaying fears over the country’s nuclear ambitions.
The Institute for Science and International Security says if the heavy-water plant reaches full capacity, it would produce about 20lb of plutonium a year.
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