From Nation State to Global Community

SUPERLATIVA-sun-passport

In this post I’m trying to reply to a publication from the Strategic Foresight Club[1], and represent an update of one an older article on linkedin BE, it was 2015 and the forecast trend is growing. cool

Well, in my opinion we’d  introduce the concept of  Nation State vs Corporate State, about that, we all are experimenting from the opposite fronts the echoes of the, till now, Financial World War III raising from the ancient caves of human stupidity.

Now, what’s the academical definition of Corporate Citizenship:

DEFINITION of ‘Corporate Citizenship’[2]

The extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim is for businesses to create higher standards of living and quality of life in the communities in which they operate, while still preserving profitability for stakeholders.

As demand for socially responsible corporations increases, investors, consumers and employees are now more willing to use their individual power to punish companies that do not share their values. For example, investors who find out about a company’s negative corporate citizenship practices could boycott its products or services, refuse to invest in its stock or speak out against that company among family and friends.

Someone’s is still considering this hypothesis as naïve, someone call it CSR[3] but I’d like to offer a free energizing and vigorous cool shower to every sceptic.

Everything’s started one day in a little State named Swiss, a tiny hole surrounded by a cumbersome and hyper-bureaucratic giant baptized Europe[4]

This funny, eccentric State decided to become the very first Corporate based currency, in fact the Swiss National Bank – a central bank – had been one of the biggest buyers of AAPL stock in the first quarter, when it added 3.3 million shares to its existing position, or 60%, bringing the total to 9 million shares, for a grand total of $1.1 billion. Moments ago, the SNB which unlike the Fed and the other “serious” central banks releases a 10-Q divulging its equity holdings, updated on its latest stock portfolio.

So what are the Swiss hedge fund with nearly $94 billion in equity holdings? Here is the full breakdown.

SNB top holdings 2016

$94 billion is nothing in the world contest but means a lot in a small state that has always made the difference in the financial hi-class world.

What’s happening in china since this question was upstretched from a provocation of prof. Zhao Tingyang:

Prof Zhao Tingyang, a Chinese philosopher, has created a stir by proposing that ‘the world’ should be the primary unit of social organization, instead of the nation-state. He rejects an international system, which is based on relations between nation-states, and advocates a global system. In his philosophical framework, all people on the planet should have loyalty to ‘the world’ and participate in its affairs as global citizens, not as representatives of their nations. In such a world, the United Nations Organization is irrelevant. Zhao would prefer some other form of the world government.[5]

Realistically today China believes in Gold working to be the next World Super State:

Graph_Estimated-Total-Chinese-Gold-Reserves

On July 17, 2015, the People’s Bank of China (PBOC) updated its gold reserves holdings for the first time since 2009. The PBOC reported adding 604 tons of gold to their reserves bringing the total from 1,054 tons to 1,658 tons.

The PBOC announcement was widely anticipated as a pre-requisite of China’s application for inclusion in the International Monetary Funds’ (IMF) Special Drawing Rights (“SDRs”).

Several observers think China holds a portion of its gold at the PBOC as reserves with the rest held elsewhere in China.

The PBOC’s updated gold reserves are five times more than England’s and certainly enough to show the financial heft required for admission to the SDR. The PBOC doesn’t need to report thousands of tons of gold to get into the SDR and they don’t need to upstage their largest single country trading partner, the United States at this point (whose stated gold reserves are 8,135 tons).

Gold-reserves

*The percentage share held in gold of total foreign reserves, as calculated by the World Gold Council. The value of gold holdings is calculated using the end of month LBMA Gold price published daily by ICE Benchmark Administration. In October 2016 the end of month gold price was $1272.

China’s recent update to its gold holdings put it in fifth place among gold holding nations, (hey Italy looks wealthy too ).

Objectively it seems that China’s primary objective is not acceptance into the SDR but rather to establish a viable parallel international financial structure to rival the IMF.

Indeed: The World most prominent financial trader are blind in the medium long term, just think to the last crisis and to the very old “Tulip fever” of 1637[6], when you don’t consider it a fact don’t continue reading this post.

De-dollarization accelerates while the U.S. Dollar Index (DXY) also rises.

The DXY has risen nearly 20% the past year despite an acceleration of de-dollarization initiatives including increasing sales of U.S. Treasury Bonds by Russia and China and most recently, the creation of the Asian Infrastructure Investment Bank (AIIB).

The dollar’s rise is based on the premise that the U.S Federal Reserve (Fed) might be raising interest rates, something they haven’t done in nearly a decade. All the focus is on that potential.

Forgotten is that over the past decade the Fed has recklessly created a housing bubble and bust and then compounded their error by printing over $4 trillion to buy near worthless mortgage backed securities from the too big to fail banks and to purchase over $2 trillion in U.S. Treasury Bonds, thereby assisting the U.S. government in increasing its massive deficit.

The Price of the “Recovery”

fredgraph

What Chinese De-Dollarization Looks Like:

While much of the financial media attention is focused on what Janet Yellen and the Fed might say or do, international de-dollarization efforts are accelerating.

China’s de-dollarization efforts are less focused on selling U.S. Treasury Bonds and more focused on increasing global use of the Chinese Renminbi or Yuan, including the following initiatives:

Asian Infrastructure Investment Bank

The most ambitious Chinese de-dollarization initiative to date is the recent creation of the AIIB. The AIIB was set up to finance infrastructure projects throughout Asia.

U.S. and NATO allies have disregarded U.S. entreaties not to join the AIIB. Despite U.S. objections, Australia, Netherlands, Brazil, Turkey, UK, Switzerland, New-Zealand, Luxembourg, Italy, Germany, France, Austria, Denmark have signed on to participate in the AIIB.

U.K. Prime Minister David Cameron has been quoted as saying with regard to the U.K’s involvement with the AIIB: “There will be times when we take a different approach. We think that it’s in the UK’s national interest.”

Inclusion of China in the SDR Scheme?

China is making a bid for inclusion in the International Monetary Fund’s (IMF) Special Drawing Rights (SDRs) basket of currencies later this year. If such inclusion does not happen or on terms suitable to the Chinese, China is setting up the infrastructure to perhaps bypass the IMF entirely. For more on SDR’s, see http://bcove.me/7qou4729

Conclusion

We can philosophize as we like but the reality is that we have David, (the Swiss system), and Goliath, the new Chinese Ruler who will shape the future world, unless, everyone’s like me will  build or join his private Nation, in my case, S.U.Nhttp://www.superlativa.it/sun/ since I and You are somebody and we all together  can make the difference using our individual power, the power to buy or to ban., and why not to shape a new #blockchain value, named @1trueid

Images in this post are considered to be in the public domain since found on the web and media therefore supposed to be copyright-free images – it’s not intended from the author of the post to violate any copyright right infringement laws, or to offend anyone; in the case you advise a violation, would you advise me and I’ll promptly remove them. The post it’s also an expression of my personal opinion, and do not intend as well to have any commercial purpose.

[1] http://strategicforesight.com/ Strategic Foresight Group (SFG) is a think – tank engaged in crafting new policy concepts that enable decision makers to prepare for a future in uncertain times. Founded in 2002 to create new forms of intellectual capital, our body of work today encompasses over 50 countries, across four continents.
[2] http://www.investopedia.com/terms/c/corporatecitizenship.asp#ixzz3iPFJZ9nS
[3] https://en.wikipedia.org/wiki/Corporate_social_responsibility
[4] From fecund EUROPA: a Phoenician princess carried off by Zeus in the form of a white bull and by him mother of Minos, Rhadamanthus, and Sarpedon, but somone says also  from the Phoenician word EROB, meaning where the sun set (west of Phoenicia,west of Bosphorus, Sea of Marmora)
[5] http://strategicforesight.com/publication_pdf/67141BQOT.pdf
[6] https://en.wikipedia.org/wiki/Tulip_mania

A tea with John Maynard Keynes

Keynes BE

The following conversation is based on the genuine point of view of John Maynard Keynes and about the ignorance about History that seems to pervade our leadership.

Good afternoon John, thanks for your kind invitation, truly appreciated, where’s Lydia?

Hi Emanuele, she has gone to see the backstage of a ballet , you know her old passion, but tell me what’s up in this century, I feel myself disoriented.

You remember your words John?

« The game of professional investment is intolerably boring and over-exacting to anyone who is entirely exempt from the gambling instinct; whilst he who has it must pay to this propensity the appropriate toll. »

Well profit and cash are the kings now, few are re-investing and we suffered a structural crisis of the system and unemployment rates, even worse than the Great Depression one.

Gosh Emanuele, I predicted it, was inevitable when you rely on a mass market economic system.

Correct, John but the problem is that USA and even Japan now are rallying on Miltontheory 1.

OMG, to think that I wanted to introduce again a monetary system based on gold!

:DDD John, sorry but it’s really hilarious, I remember again when you told,

«Unemployment develops […] because people want the moon; (or Mars now)—men cannot be employed when the object of desire (i.e. money) is something which cannot be produced and the demand for which cannot be readily choked off. There is no remedy but to persuade the public that green cheese is practically the same thing and to have a green cheese factory (i.e. a central bank) under public control.»

The Federal Banks are mainly or totally private now!

My dear, you’re well informed, but you’d know also in the case what I told to the people who criticize me on the applicability of my models in the long term, … « In the long run we are all dead. »2 … but taste your tea now or you’ll miss the fragrance of these leaves that a friend from the India Office sent me.

Really sweet-smelling and delicate John, send my compliments to him, also these biscuits are delicious, and can let me forgive for a while the bitter taste of a world without ideals and ideas, it’s a sort of frustration sometime.

Ideas shape the course of History Emanuele, don’t be discouraged and too much practical, remember:

«Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.»

Let fly the soul of the genius who’s in every human kind, learn how to inspire happiness and we’ll do rest, by the way we’re not lived for nothing.

You’re right John, at the end this crisis is simply caused to the fact that the Capitalism has reached his scope and goal, we are in the most of the case, or we could, when we would, in abundance of products, and this system need to be re-engineered; Many people of good will and sense is talking about the sharing economy, new models to intend the productivity, in a few words how to be happy, therefore we’re still on time to build a better world when we’ll win.

Emanuele, A study of the history of opinion is a necessary preliminary to the emancipation of the mind, and never forget that nothing matter except states of mind, chiefly our own.

Thanks John, rest in peace, I’ll mind out, and forward my regards also to Cicerone as soon as you meet him, I’ve made one of his motto as mine,<<Historia vero testis temporum, lux veritatis, vita memoriae, magistra vitae, nuntia vetustatis>>(Cicerone, De Oratore, II, 9, 36)

OK Emanuele but we’ve another sort of intending the time and the economy here, but you’re not ready for that, never mind, I’ll do it, take care my friend!

Why did the Keynesian theory didn’t work?  Government spend too much money on post-WWII events. (Examples: Vietnam war, sending the first man to the moon)  The Keynesian solution stopped working  Unemployment became worst  It created Inflation 

In conclusion Keynesian theories work best on economics catastrophes like today’s events

JOHN MAYNARD KEYNES (1883-1946)

The greatest economic thinker of the 20th century, Keynes (a Liberal incidentally) challenged fundamentally the idea that market economies will automatically adjust to create full employment. After working at the Treasury during World War I, he was its chief representative at the post-war Paris peace conference, but resigned in protest at the harshness of the planned reparations. In the Twenties he developed radical plans for dealing with unemployment through deficit financing and state intervention. His insistence on the central role that uncertainty plays in economic decisions foreshadows much of the current interest in behavioural economics. While his basic economic framework – in which short-term economic growth (and employment) depends on ‘aggregate demand’ (consumption, investment and net exports) is built into many of our forecasting models today. Later on, he participated in the Bretton Woods conference (which looked at how to establish a post-war monetary system that would avoid further economic crises) that led to the creation of the International Monetary Fund and the World Bank. Admittedly, he went out of fashion in recent decades when inflation was a bigger worry than unemployment. However, the present crisis has led to something of a revival in Keynesian thinking, and his insights into how international imbalances should be tackled remain highly relevant.

  1. Milton Friedman http://en.wikipedia.org/wiki/Milton_Friedman
  2. A Tract on Monetary Reform, chapter 3, 1923

Images in this post are considered to be in the public domain since found on the web and media therefore supposed to be copyright-free images – it’s not intended from the author of the post to violate any copyright right infringement laws, or to offend anyone; in the case you advise a violation, would you advise me and I’ll promptly remove them. The post it’s also an expression of my personal opinion, and do not intend as well to have any commercial purpose.

Solar Hoax

Solar panels are really eco minded
Till now no one has done a serious study on the environmental impact of billions of solar panel, but in less than ten years we will face this problem.

It may be another big market for the recycling industry?

Most probably yes, and that’s’ good, but what’s insane it is the fact that at the end the so proclaimed green energy most probably it’s not so much green, at least with the actual technology.

But we have time to improve; recycling at the end it’s always better than poisoning radiation, but not as good as wind, water, cold energy!

Next on … Basel III

Home #Vacuum Tax

Lets’ say Yes to the vacuum tax
It’s my opinion that sooner or later we’ll see a new tax named something like:

Home #VacuumTax!

This new duty, will be applied to all the owners of houses, apartment, villa, or whatever connected to real estate properties left empty.

Like Tobin tax, don’t worry, it will be sound, because it will force banks and corporations to come into a real market where demand and offer will meet, and above all will force them to discard ugly habitat in favor of green quarters, trees, clean air.

Mario, #Monti & #Draghi it’s my opinion but it may be your too, I can leave the paternity of this new law to you!

Bank of America

"Amedeo Giannini picture on TIme"Company: Bank of America
Net Worth: Unknown

1906, an unknown Italian young emigrate in San Francisco, California, with his handcart placed in the middle of the worst earthquake and fire that shocked the United States, when still the smoke was rising from the ruins, he initiate to lend money to the people for the reconstruction of their homes.

He was trusting in their word!

So, home mortgages, auto loans, installment credit – they may be taken for granted today, but before this son of Italian immigrants came along, such things didn’t exist. Amadeo Peter Giannini – A.P. to his friends – revolutionized the banking world by focusing on “the little people.” Giannini passed away in 1949 at the age of 79. By that time, the bank he had founded, the Bank of America, had become the largest bank in the world, with $7 billion in assets and more than 525 branches in over 300 American cities. Today, Giannini stands out as one of TIME Magazine’s Builders and Titans of the 20th century – the only banker to make this list of the century’s most 100 important people.

He never dreamed of being a banker when he was a child. A son of poor immigrants, Giannini helped build the first national system of banks for the ordinary person, all the while fueling California’s economic development and inspiring a new generation of entrepreneurs.

Advice For Entrepreneurs:

Dinameeting 2011 BerBrand selected as Champion Co.

 

DINAMEETING 2010 belief that innovate it means to grow.

The goal is to drive the small medium companies in Lombardia, (one of the richest region of Italy),  to perceive technology as a necessary investment for business development and not merely as a cost to be incurred.
ICT in fact lead not only to a better control of the costs, but also to develop the potential of every business.
To do so, information technology must be designed and drawn on the real needs of micro and small enterprises, allowing the entrepreneur to their resources and easy access to these tools, especially in monetary terms.

BerBrand has been selected as a champion company, so, BerBrand will rally round a few selected micro and small companies implement  their innovation process.

DINAMEETING 2010 nasce dalla convinzione che innovare voglia dire crescere.

L’obiettivo che si pone il progetto è quello di portare le imprese lombarde a percepire la tecnologia come un investimento necessario per lo sviluppo aziendale e non solo come un costo da sostenere. 

Le ICT infatti portano non solo ad un migliore controllo dei costi, ma anche allo sviluppo delle potenzialità di ogni attività imprenditoriale.

Per fare ciò, le tecnologie informatiche devono essere concepite e disegnate sulle reali necessità delle micro e piccole imprese, permettendo all’imprenditore e alle proprie risorse di accedere con facilità a questi strumenti, anche e soprattutto a livello economico.

DINAMEETING 2010 sarà il mezzo attraverso il quale gli imprenditori potranno accedere alle potenzialità offerte dalla tecnologia, mettendo a disposizione delle imprese esperti professionisti che le accompagneranno verso il cambiamento e che redigeranno un piano di intervento sulle loro esigenze, utilizzando un linguaggio semplice e diretto.

BerBrand è stata selezionata come impresa champion   per guidare le micro e piccole imprese selezionate nell’implementazione dell’innovazione tecnologica.

BerBrand win the first prize at SMAU Operation&Logistic award

An Innovative tracking system for the full supply chain traceability, real time tracking and counter faking using the RfID tags.

http://portal.smau.it/html/pdf/2010/cs/smauMilano2010_premi/premioinnovazione-logistica.pdf

A ROUND TABLE PANEL DISCUSSION ON SUSTAINABLE FASHION

Berbrand, a manufacturer of sustainable mother-of-pearl buttons, is truly remarkable. These are not your mother’s pearls we’re talking about here – think more along the lines of an innovative use of the mother-of-pearl, such as the shell of a motor bike and laptops to name a couple.

The focus was then turned to a round-table panel discussion appropriately entitled, The Tipping Point. The hot topics centered around the state of eco-fashion: present and future.The panel, co-hosted and moderated by Barbara Kramer (Co-Founder of Designers & Agents) included Bahar Shahpar, eco-fashion designer and Founder of The Four Hundred; Summer Rayne Oakes, model and environmentalist; Dr. Emanuele Bertoli, Founder of BerBrand; Elinor Averyt, Founder of L.E.A.F. (Labeling Ecologically Approved Fabrics); Sergio Sessini, President of CADICA USA, Inc., and Gokhan Baykam, President and CEO of Relight.

New York Times

Sakis Lala

Not everyone is pessimistic about Italy’s future. Emanuele Bertoli, the owner of a company that makes mother-of-pearl buttons for clothing designers like Giorgio Armani and Stefano Ricci, has thrived by putting most of his production in Vietnam and China, near the hatcheries for his pearls.

Back home, where he keeps a design studio, Mr. Bertoli, 38, said he was inspired by the sun-dappled landscape east of Milan — a region known as button valley for its many local button makers. “You are surrounded by beauty in this country,” he said. “It permeates you.”

Capturing this beauty, he said, and selling it to the rest of the world — whether in the form of Ferragamo shoes or Fiat cars — is how Italy can reclaim its export franchise and revive its economy.

© photographer Sakis Lalas for The New York Times

Emanuele Bertoli’s button plants in Vietnam and China are thriving.