The Death of Taxes (or the End of Life as We Know It?) – Forbes


I can relate to the “desperation”  that is apparent in the Author’s tone!

Virtually any company I have seen, with just a little coaching and prodding, can increase their bottom line by at least a full percentage point.  Since most companies only make about 5% after tax, that one point is a 20% improvement.

And still they don’t react; they don’t change; and if they do, they do too little and only do it once.  But complexity is like weeds in a garden.  It keeps coming back again and again, and needs to be monitored, controlled and repeatedly removed.

Ironically, the systems that may fail first due to excessive complexity are not corporate systems.  They are the incredibly complex systems that we call “government.”

The Death of Taxes (or the End of Life as We Know It?) – Forbes.

Particularly in tough economic times, the opportunity to build better, more profitable and resilient enterprises, and economies, makes supreme sense. Read more of this post

Revealed: the capitalist network that runs the world – New Scientist


I recently wrote "If you think "ruling elites" are a fantasy…think again" and have been boring regular readers about complexity and the threat of excessive complexity, particularly when the inter-connections are "closely coupled" (see below). Amongst others, the World Economic Forum have attempted to highlight the issues.

Financially “influential” firms SHOULD BE, as they have historically been, sources of “systemic resilience”. Instead, in a turbulent, debt-laden, global economy they can, effectively, act as “superspreaders”…hubs of systemic risk:

The 1318 transnational corporations that form the core of the economy. Superconnected companies are red, very connected companies are yellow. The size of the dot represents revenue <i>(Image: </i>PLoS One<i>)</i>AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters’ worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

The study’s assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.

….Concentration of power is not good or bad in itself, says the Zurich team, but the core’s tight interconnections could be. As the world learned in 2008, such networks are unstable. "If one [company] suffers distress," says Glattfelder, "this propagates."

Read more of this post

UK Economy: A cynic’s summary (in a single page)


Oh how I wish I could lay claim to such a “piece”. Succinct and introducing me to a great new word “KLPETOCRACY

We are living under a volcano.

Banks have been bailed out to the tune of £3Trillion by Central Banks and Governments around the world. They have used this money for two main purposes – to speculate on commodity prices driving the cost of oil and food to record highs and to short European Government Bonds inflicting huge misery and debt on the populations of these countries.

Ordinary people are paying for the bank bail outs through cuts in public services, pay restraint, job losses and higher inflation (due to speculation and quantitative easing).

The Banks are rewarding themselves with unbelievable bonuses and pay hikes. No apologies, no jail sentences for those who caused the crash – just business as usual and the middle finger of £7Bn bonuses.

In the UK, at least £124 billion of the money we have given the banks is being scored on the National Account as government debt.

This gives the Government the excuse to inflict £81 billion of cuts and tax rises on us.

The ConDem Government promised the electorate reform of banking remuneration

But due to their funding arrangements we won’t be getting it [Link]

People are realising that we are not in fact all in it together but have instead a kleptocracy

This copied directly and in its entirety from Robert Peston’s blog on BBC. Some great comments but this one really made me smile

In the shadow of the volcano

Banks and sustainability!!!


Created in Photoshop, based on "Sustainab... 

Image via Wikipedia

It’s almost unbelievable but the world hasn’t gone mad…they are still their priority. But, PERHAPS, there is a growing (and grudging) recognition in the banking sector that there are considerations other than profit, ROI, etc. Heck, maybe even a realisation that term SYSTEMIC does not apply only to the economic domain! We will see…

Datamonitor: Banking reform: addressing the sustainability of banking business models

The Financial Times recently quoted Andrew Cave, head of corporate sustainability at RBS, as saying: “We are fully signed-up to the goal of sustainable, long-term banking. That means providing customers with useful products that deliver an acceptable return for RBS, but with a view to social and economic responsibility, too.” This kind of sentiment is currently being expressed across the banking sector, and represents a sea change in banks’ attitudes since the heady days leading up to 2007-08.

However, if sustainability is to become a core element of bank practices, there must be major upheavals to the current system.

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Will insurers adopt tools for NOW to minimise risk tomorrow?


Why are insurers ignoring the facts?

Why are they still trying to predict the future using incomplete data, assumptions and flawed models?

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