Tuesday, May 7, 2013

Does the US Have a Strategic Plan?



Does the US Have as Strategy?


I am not talking about a Military Strategy. I am not talking about a Diplomatic Strategy.  I am talking about a strategic plan.  The same plan a business would have if it intended to stay in business.  This, then, begs the question, “Does Europe have a strategy?  Does China?



Bill Clinton had it Half Right


Bill Clinton said, “Government is the store and the American people are the customers.”  Clinton had it half right.  (All right, he had it half wrong.)

Government is the store.  The American people are the owners.  The Government Leaders are the employees.  They work for and with the owners, but they are employees.  They don’t own the store. They only run the store. 



Back to Business


Does the US have a strategic plan?  Well, no. 
The US is experiencing revenue loss, rising expenses, increased competition, loss of market share, internal management problems, yet we have no strategic plan and no indication that anyone cares. 

The unusual factor in all this, where the country differs from a business, is that the owners and the workers are one and the same. 

Some stakeholders have a larger stake in the company.  Some stakeholders put in more sweat-equity. Still, the analogy holds.



The Problems


  • We put together a committee to come up with a solution to revenue loss and rising costs
  • We tried to create a group insurance plan to cover all the stakeholders.
  • We rely on foreign suppliers to cut costs.
  • We borrowed money to hoping to have a capital investment plan to increase revenue.
  • We have an employee drug-dependency problem and no programme to deal with it.
  • The managers are stealing from the company.
  • The stakeholders are losing money.
  • The company is throwing good money after bad.


However, we are not the only ones.



Does Europe Have a Strategic Plan?


"European Union is less of a Union and more of a Tontine."

“The Last Economy Standing Takes All.” 

Slim Fairview 

The Quotations of Slim Fairview.


  • Europe suffered loss of revenue and increased costs of operation.
  • Europe laid off workers to cut costs.
  • Europe borrowed money to pay workers their severance.
  • Europe is borrowing against capital to pay operating costs.
  • Europe has no capital investment programme.
  • Stakeholders who own a greater share in the company are lending money to the company to pay bills.
  • Europe is hiring cheap outside labour to cut operating costs.
  • Europe repeats the process.



Does China Have as Strategic Plan?


  • China’s stakeholders contribute to a Capital Investment Programme.
  • China has a profit sharing programme that gave 40% of its stakeholders a larger share in the company.
  • China created an inventory to meet increasing production needs.
  • China invested in suppliers who became customers.
  • China ignored the advice of others.
  • Chinese stakeholders deferred profits to cut costs to become more competitive.
  • China does not “invest in” but rather implements technology.



Can we solve our problems?

Well, yes, but....



Sincerest regards,


Slim




Copyright © 2013 Bob Asken
All rights reserved.



Thursday, May 2, 2013

Merkel's Big Lies


The First Rule of Holes.


When you find yourself in a hole--Stop Digging!



The EuroCrisis has lasted too long.


The EuroCrisis has lasted long enough. And, given the path of the trajectory, will continue.

The EuroCrisis began with a small problem.  Too much spending and too little revenue combined with a the slowing of the global economy.

The proposed solution:  institute a policy of austerity.

The actual solution:  Too much austerity.

The result: The European Economic Crisis.



How did this happen? 

 
This happened as the result of a trap carefully laid.  A strategy implemented and in progress.

  • You have debt
  • We lend you money
  • You cut spending
I explained this deceit in an article written almost two years ago.


How did Europe arrive at its current state of Economic Crisis?



Merkel's 10 Big Lies 



Big Lie # 1:  Blame Greece 



I wrote an article about the following.  The "Commission" recommended lending Greece  €110 Billion.  This loan was made on the basis of a false statement:  The forecast that the Greek economy would grow by 2% and Greece could repay the loan.

When the Greek economy did not grow by 2% because there was no basis for growth, the Commission recommended sanctions to punish Greece.  Why? to conceal the fact that the loan was made on the basis of a baseless forecast in order to impose more severe austerity on the Greek people. Economic conditions declined.  Merkel's Trojan Plan--Destroy Greece.



Big Lie # 2:  The Firewall 


In my article, Firewall or Farce, I stated that the Firewall will not protect Spain.  The Firewall did not protect Spain.



A Truth


You cannot cut wages, fire people, raise property taxes  and call it a solution.  The intractable and extremest adherence to the one-pronged (and one-pronged only) position of Austerity has driven he European Economy down and the Europeans into penury.



Big Lie # 3:  The Ponzi Scheme


With the European Economy declining, Merkel sent Madame Lagarde "begging for coppers".  The plan was to seek contributions from The Middle East, China, Brazil, The BRIC nations as a whole, in an attempt to induce the next group of contributors to help to pay the debt owed to the previous group of contributors.



Big Lie # 4:  Deceptive Denials


Merkel's position (and properly so) was that Europe should not expect German taxpayers to bail out poor nations indefinitely.  The deception? No one expected Germany taxpayers to bail out poor nations indefinitely.  No one wanted German taxpayers to bail out poor nations indefinitely.  Merkel's claim made it appear to be true.



Big Lie # 5:  Bailout: Carrots and Sticks

  • You cannot pay your bills
  • The Chancellor lends you money
  • You have responsibilities
  • You must cut spending
  • You cut spending
  • Your economy declines
  • You can't repay the loan
  • The Chancellor makes another loan
  • The Chancellor imposes harsher cuts
  • The Economy declines


 This leads to Big Lies 6 and 7



Big Lie # 6:  Incite Then Blame the People


Big Lie Number 5 creates large numbers of unemployed enduring increasingly harsh conditions.  The people have no jobs, no money, no food.  They take to the streets to protest.  The protests lead to unrest.  The protests must be quelled by Government use of force: The Police.  The use of force leads to riots.  The riots must be quelled by Troops.



Big Lie # 7.  Blame Other People


The rise of the poor and hungry leads to the rise of the opposition--The Extreme Right.  The Right cannot blame their fellow countrymen, so they blame immigrants and begin fomenting xenophobia. This creates more hostilities, more police, more riots, more troops.



Big Lie # 8:  Claim Compassion and Nobility


Merkel claims that Austerity only makes it sound Evil.  That her intentions were merely to balance the budgets.  Merkel claims to have been misunderstood in her motives.  Merkel claims to have only the most noble of intentions.  Remember,  "Let them eat cake"?  Remember what happened next?



Big Lie # 9:  Claim to be a Victim


Merkel whines:  "I've seen the posters of me dressed as a NAZI.  Poor me. I am a victim.  Try hard to understand my position."



To: The the Leaders of Europe.

As European leaders, you are presumed to be literate and well read.  Not doubt you have read Jonathan Swift and his essay, A Modest Proposal.  Swift wrote satire.  If Europe had a Food Crisis and not an Economic Crisis, Merkel's Austerity Plan would be, "Let the children starve and you will have plenty of food."  If you doubt me, look at the 50% youth unemployment.  This destruction is not limited to the economy.  This destruction is not limited to your children.  It will extend to your grandchildren.



By Definition:  

European Leaders who follow Merkel are not leaders, they are followers.

How can you,  in good conscience, destroy the lives of  your children and grandchildren?


Analysis

  • Have you followed Merkel's Lead?
  • Yes!
  • Have conditions improved?
  • No!
  • Have conditions become much worse?
  • Yes!
  • Conclusion?
  • Do not follow Merkel's Lead! 



Big Lie # 10  Austerity is Austerity


A Bailout, a loan, is spending with borrowed money. A bond is a loan. A bailout is a loan, a bailout is borrowed money.  Paying bills with borrowed money is increased spending. Stop selling bonds, start selling stocks.


I have long since projected that China will spearhead a group of "Pledge Nations" that will create a Global Sovereign Investment Fund that will infuse money into the Economy of Europe, into the hands of People, not into the hands of bankers to improve the financial position of big lenders and their big investors.

This is not about politics.  This is not about economics.  This is about process management. That and the 10 Big Lies that have perpetuated the destruction of lives through the destruction of the European Economy.

Now, now, is the time to Stop Digging!  With each passing day, European Leaders are digging a deeper and deeper hole.



Sincerest Regards,

Slim




Copyright © 2013 Slim Fairview
All Rights Reserved

The Side Street Journal is an unfunded, unsupported, non-profit web log owned and written by Slim Fairview.  I am solely responsible for the conclusions drawn from my analysis of the global economy as reported.