Why Its Plain To See The Geopolitical Writing On The Wall

Not only does China have state-run newspaper called the "Global Times" but their phenomenal surge economically to the position of second economic power in the world threatens the status quo of the current hegemonic power. Note "power" said not in the plural but singular.

Hence why trade-war onslaught started this month of March 2018 with steel and aluminium tariffs imposed under order of demagogue leader  of the so called "free world"  President Donald; and yesterday he further announced tariffs on $60 billion value of Chinese imports - its official its war! China retaliated with tit-for-tat action of imposing tariffs on only $3 billion on American imports, as reported by CNBC in the link provided above.


While officially an economic war, at the same said President of the United States of America  or USA, announced the biggest ever increase to its military spending. Up US$80 billion to approximately US$700 billion on military spending; or expressed as a proportion of the total spending approved in the Senate in the early hours of Friday, 54% of the total US$1,300 billion expenditure in 2018/19 will be on the industrial military complex.

Of the US$1.3 trillion spending bill passed exigently early Friday, there are some reading between the lines, other than the obvious. 

First of all this bill is also the raising of the "budget ceiling" i.e. how much spending the USA government fiscal deficit will sustain in a given year. As things stand the budget ceiling has today been raised 4 times int total in recent years (as WolfStreet.Com explains here), to avert what has been dramatically described as "government shutdown". So this current raising of the deficit "legislation would fund the government through the end of September". As for thereafter in this unique American legislation designed to ensure fiscal-budget prudence, anyones guess, or great uncertainty.

Remember that earlier this year the national debt of the USA passed the US$21 trillion mark (also described in the WolfStreet article referenced above, and shown in the chart below). This is less significant as a absolute number, with the Dollar as the reserve token currency allowing unprecedented increase in "money printing" (to make historical Weimar Republic period of hyperinflation look restrained),  but reflected as percent of GDP or what America produces, the debt is very unsustainable.
Also as a  consequence of the unsustainable ballooning debt-bubble of government, Trump is perhaps leading us to that one major dire and disastrous outcome - debt default. The caveat is, only if his "America First" protectionism does not lead to sustained growth. But as we have seen over the last 10 years of kicking the debt-calamity into the long-grass, since the credit bubble in financial services, there are other remedies than debt default and debt-destroying inflation; namely near-zero or zero interest rate policy - Z.I.R.P and debt restructuring (the bad debts racked-up by financial services are now American taxpayers debt burden through T.A.R.P and Q.E etc). Who should continue to revolt or cause civil disorder with rage, after sucessive US administrations and policies delivered austerity instead of prosperity for the masses.

 
 This is why China is THE concerning crucial factor in the economic globalisation that we have seen accelerated since the 1980s or last 40 years. Trend of globalisation stopping now is evident, for fear that China grabs the economic growth that is needed in the current G7 countries, to pay-off their debt.

Yet the economic growth solution is hampered in the face climate change concerns. Yes climate change is only too REAL and beginning to be evident as an imminent threat to humanity and the planet. As are economic-growth threat from disruptive technologies that are burgeoning through to destroy traditional trading activities (e.g. shop-front buying and selling versus Internet online markets). Another example of the titans at
 trade war: China's scale of production has massively reduced the price of solar panels as an alternative to expensive fossil-fuel based oil and gas. 

What of the disruption (which is a euphemistic term) to traditional oil and gas exploration extracting refining and distribution industries, from climate-change concerns? The write-down or destruction of these industries' assets, whose stock market values reflect status quo international free-trade policies, will not be merely disruptive! We have seen this month the stock market valuations impact on global steel and aluminium companies.
See the latest research from the CarbonTracker.Org initiative (which investment bank research will not show!): Mind The Gap: $1.6 trillion energy transition risk.

Finally, in the context of what we have discussed above there will begin as covert of subterfuge psychological operations towards a cultural revolution. "America First", mentioned earlier is only the same socio-economic political stance as once great empire hegemony of United Kingdom, who exited the regional union of group known as European Union (which had as it early phase / guise the E.E.C - the European Economic Cooperation), on June 23rd 2016. Now this great tear-away from globalisation via regionalisation, project is named simply "Brexit". Abbreviation for for Britain Exits the European Union.

The cultural revolution in countries will also be "twitching" by the masses of people away from traditional government by politicians, viz. billionaire Trump as President of the USA and Andrej Babis in Czech Republic. Political machinery, which after 40 years of liberal capitalism, a period better known as "neoliberalism", has produced the rise and decline of the middle class, while creating and enriching plutocrats and oligarchs. As represented by billionaire wealth status of the top 1% of global population. Those politicians are dubbed by Fund Portfolio Management's own reputation thesis, NoSmokeWithoutFire, hastag #politiciansRcriminals.

The cultural revolution will also take the form of behavioural changes, as led from not only disruptive industries (whether people like or accept the phenomena that we are put-through for corporations, who define and rule via Pavalov's dogs impulses, most of our lifestyles behaviours), but from controls about freedom of movement of people, and indeed movement of goods. Which in context of free-trade developments THIS month, is supportive of Fund Portfolio management's geopolitical-tension scenario in the near- to medium-term. 

In short any activities which all add to greater carbon emission, and destruction of the planet will be curtailed. As evidence look at the slow economic growth of the last 10 years imposing mass austerity on the many under neoliberalism. That was not by accident, it was by design, in the face of the most important chart to mankind (by kind permission of Nasa below citing all the evidence. Don't take FPM's word for it.





 

The Curse Of The Zeitgist: Globalisation Trending

You are NOT about to read a script for a B-movie sci-fi of social dystopia!

Instead a joined-up considered exposition  of the present state of our times and "the human condition"; which many many great persons of the past deliberated on in timely fashion (in mind we have George Orwell's epochal "1984" novel, or before that John Stuart Mill (1806-1873) a British philosopher, socio-political economist and civil servant). This text is neither intended as government or corporate propaganda. Whose worker-ants' end-goal is towards changing our mind-sets. Yet for the purpose of intelligent cogitation and reflection of our socio-economic life governed ultimately by politicians - or so we are foolishly led to believe!

As propaganda IS subversive: as defined by its key proponent Edward Bernays below in the opening chapter "Organizing Chaos" from his 1928 treatise "Propaganda"; and if one marries Ivan Pavlov's (1849-1936) behaviour experiments, better known as Pavlov's Dogs; we begin to understand the certitude of mass manipulation through the recent centuries, when we falsely believed we were free of slavery, barononial-tyranny and fiefdoms. However, the forms of "master-servant relationship" has changed, what should not be in doubt is 'plutocracy' still exists today: many today describe it as slavery through indebtedness. Throughout the ages, similar human-conditions of servitude yet different mechanisms and methods of subservience to the few wealthy and powerful strata of society existed.

Edward Bernays 1928 treatise "Propaganda"

To this understanding of propaganda and human-conditioning, there is inductive-information from indirect experience or hear-so-say. That is, how we know what we know and consequently do what we do as behaviour. For this subject one needs to present the mid-18th century British philosopher David Hume's "Problem of Induction".

"Hume identifies two ways understanding (reason) exerts itself: demonstrative and probabilistic. Demonstrative reasoning is deductive; it allows us to draw specific claims from general ideas. Probabilistic (or causal) reasoning is inductive; it allows us to make general claims from specific ones". [Hume, David (1888) ‘Reason and Passion’...]

Deceitful propaganda uses the latter "probablistic" reasoning in facetious ways.  We are indoctrinated as a society rather than as a smaller community by its members, if the globalisation process is accepted; and induction of understanding i.e. what we we know and how we know it, is the basis of the opinion and values a society receives from media in all its various guises, including nowadays as technological social-media. For example, if we take George Lucas's "Star Wars" franchise as being a global phenomena, e.g. as represented by many species of humans and aliens characterised in the films, books etc; then there is widespread potential for mind-control of masses if not billions of the planet's population through subtle but sub-conciously influencing masses (more later on Oliver Stone films). English does translate more often; more so than the most spoken language of China!

Actual Examples Of Globalisation (and why it 'sucks'!)

Language Through Entertainment

Thats was the introduction, now allowing for the examples of globalisation which I find unnerving as it is expressed in todays' crude terms; instead of the 21st century terms some have dreamed of and been told about by scientists and extrapolative-fiction, classically in novels ands books.

Information and language are indelibly linked. If a customer of a hotel asks me "Press this please", as different from "Iron that please", as she hands me her dress to me, as if I am concierge at the hotel. I might understand or not, as the case maybe, but I will at least notice the oddity of how someone has requested the service, compared to how the royal "one" might have requested to have less folds / creases in my clothes/ garment. On many levels the sentence is or would be curious to a mind educated and organised to understand the interplay of  the three-word sentence in numerous interpreted contexts! The obvious similarity in the two-forms is that 'please' has been oddly inserted / stated, when we know politeness has various expressions in varied cultures. Burping is good in some class-circles foreign-cultures, while a grand "faux-paux" in others. Secondly, 'this' was used in one sentence and 'that' used in the opposed 3-word sentence. And finally, I have never used "press this", only "iron that"! Please write to me as to if "social-class" or "dated" usage of "press" usage or if predominantly American used word? I really do not know English language grammar to know, yet I allegedly speak and write it. Also I know as a thumb-rule, and understand that usage make the final definition of acceptability of grammar. If i start saying "press this" for an "ironing" request, I would change from my social-class and age or use American vocabulary. I like how I am perhaps, and not through globalisation.

Then I would identify Hollywood as a source of mass-media and communication for the masses of English-speaking and pseudo-English spoken audience. Already has been mentioned how "Star Wars" is a globally recognised phenomenon. Oliver Stone seem to make epic films of historical events; as if re-telling history in some alternatively interpreted way of the facts - called "artistic license". Mr Stone's selected movie portfolio include Platoon ('86), Born on the Fourth of July ('89), JFK ('91), Alexander (2004) etc. All the films mentioned revealed degrees of political and idealogical controversy, hence the FPM assertion of "alternatively interpreted way of the facts". The Oliver Stone film that ALL financiers will remember is his Wall Street ('87) series of films. As well as Wall Street bankers and bankers globally, the liberals and intellects find pertinent, is the 2010 film "Wall Street: Money Never Sleeps".

Filmed in the aftermath of the 2008 started financial crash and the consequent Great Recession, FPM uses this to show how a global larceny running into trillions of dollars was committed without rousing the angst of the viewing public. In the formulaic happy-ending story-telling of a Hollywood block-buster with its distortions, there is an empyrean truth: that the financial crisis allowed 17 or so "too big to fail" banks and similar financial players benefitted from the greatest transference of wealth in history from the taxpayer-funded the public purse to the so-called free-market private sector financial institutions. Why do you think the "National Debt" of the USA / America and other key countries have ballooned to the tune of trillions of Dollars? This truth paragon could be said to be the crux of the film to rouse the public taxpayer's ire; but instead the director air-brushes over with fantasy about Gordon Gekko's reformation and how he saved his family and donated £100 million to the "Green economy". Happy ending, neatly wrapped was up the story of greatest robbery by todays' robber-barrons.
Mere story telling which ultimately distorts global perspectives of history in the viewers eye is still a lie. The ancient civilisation used to believe that a picture taken of them steals their souls; similarly a "picture steals your soul and time", is also true.       

Yaala! FPM on Davos 2015 and ‘Weaponisation’

Fossil Fuel Investment Sponsors Can Frack-Off!

("You're 'Avin A Laugh Alright!" a.k.a YAALA! - In this FPM digest written in a concise nature than our regular exhaustive deliberating posts, we aim to share some of our fund- and investments-related observations and activities. We anecdotally question and challenge established wisdom.)

In the below Bloomberg interview video we present a disingenuous investor in alternative shale gas who is clearly marketing to "greater-fool" buyers / investors: he doesn’t want to be left holding the baby! Evidence of our claim is that he used analogy of “throwing away the baby with the bathwater” to describe sell off in shale-related securities with its obvious built-in-flaws.

 Oil Price Fall Is a Trader-Driven Decline: Sam Zell (Source: Bloomberg)

However, “feeling-before-knowing” about Mr Zell’s creed of person, we understand he is not the only one blowing the bubble in shale-gas related investments. From our Reputation Risk Activism based on our surveys we intend to expose others we believe are shamelessly making money from  moulding environmental human misery. The lead liquidity-funding sponsors in the shale gas bubble-blowing cabal, who tend to act in hierarchical heard-mentality, are usually the bigger fish in the pond. Enter David Rubinstein of the Carlyle Group. From the video excerpt Carlyle apparently have long-term investors succoured into various fund vehicles.

 Distressed Energy Debt `Attractive': Carlyle's Rubenstein  (Source: Bloomberg)

FPM have been actively recommending divestment of fossil-fuel energy companies, and SWITCHING into renewable-fuels focused companies. Since our recognition and realisation of the URGENCY of ecological threats about climate change, this is becoming less of a long-term strategy and more an exigent one. These financial billionaire sponsors do not worry about such environmental risks, as they would economically buy valuable safe havens on planet earth or elsewhere, which is not affected by the eco-Armageddon scenario. The other indispensable short-term factors adding to the volatility in this bubble-blown shale gas asset are political, regulatory and social movements, a.k.a geo-political concerns. We expect to share our quantitative analysis of SELL, SWITCH recommendations in energy companies.

E.U. Estrangement Before The Divorce (a.k.a Volatility)

FPM have been mooting the impractical nature of sewing-up into one collage the disparate countries of the initial European Union format, and worse still, the subsequent expanded mosaic mess oc now! Taking as example an aspect of over-reach in bureaucracy and flawed fundamental premises of the structural implementation of EU rules, it is inevitable that imbalances cannot continue indefinitely. Even with tinkering around the fringes of key principles to keep the unification ideology afloat while increasingly financially stressed. We expect to see more Government defaults, and not just ‘club-med’ countries in the EU zone but major ones. 

It may be esoteric knowledge that one of the so called tenets of EU treaty is that the “freedom of movement of people within member nations” was devised when the wealth parallels of members was similar. Nowadays it is impracticable that emigration from Poland or Romania to more prosperous countries can be controlled. Thereby labour mobility and its infinite supply distorts economic imbalances in member countries, such as creating deflationary cycle, i.e. excess supply of workers keeping wages subdued. Such business-friendly corporation effect doesn’t mitigate social environmental side-effects, such as on the country of destination of migrants where the quality of life is squeezed for its citizens. FPM’s staunch belief in eventual EU breakup is as committed as when George Soros famously broke the Bank of England. 

Below Blackstone Group’s new vice chairman John Studzinski diplomatically yet unequivocally articulates the estrangement phase of the shot-gun wedded partners of the EU trading bloc as increasing “volatility”. Events are evidentially unravelling the EU; the verdict does not come at once but the proceedings should build into it.

What the SAC Is Going On? - Update

Stop The Press! On the 12^th November a 3-judges appeal hearing to extend Mathew Martoma’s bail release, pending an appeal for his near-record 9-years’ prison and US$7 mn confiscation, as a criminal law conviction for insider trading, was cursorily declined and belatedly he is set to start incarceration (see our earlier full research to this update). Watch This Space!

The contradictions in American judicial proceedings in the SAC-saga agitate FPM principal’s Industry Intelligence with numberless pangs! A multi-years court proceedings which reaffirms the farcical theatrical nature of American Justice – Read on. WARNING / ACHTUNG: A brand of justice and democracy not to be imitated. To free ourselves of these difficulties, we expound our anger at the injustice, as FPM enterprising public information and  active resistance.

At the above mentioned the appeal hearing, U.S. Judges persistently enquired of the State prosecutors (from U.S. Department of Justice - DoJ) as to why a deposition that Steven A Cohen “SAC” submitted at an S.E.C. inquiry in May 2012, was not permitted in Mr Martoma’s January 2014 defence trial, even though the same insider-traded stocks (Elan Corp. and Wyeth Ltd), were at legal issue. The prosecuting lawyers seem to become vague and stated: “Strategic decision…so as not to confuse the jury”. State prosecutor’s, if anyone need reminding, are paid for with public taxpayer money and supposedly representing the public interest, here demonstrate how the law can be technically perverted, i.e. used to convict one and exonerate another from the same legal issue.

To re-cap key elements of the legal case demonstrating this systemic corruption in capitalism the issue at stake in FPM’a ‘plain English’ attempt (read also Muppet Mainstream Media diversion too): Mr Martoma’s defence in effect stated in their main appeal:

“What’s the evidence that gets me harsh 9 years prison and a confiscation conviction while head-honcho multi-billionaire at the centre of the web-of-securities fraud Mr Cohen walks ‘scot free’ into the sunset at age 58 with US$10 bn after 20+ years insinuation in corporate criminality? ”

The documented video deposition in question was that of the head-honcho Mr Cohen which indicated that he relied on Wayne Holman’s consultancy expertise (a healthcare portfolio manager, former SAC employee and friend who left in 2006 to form Ridgeback Capital Management) to profitably netting $275 mn from exiting a US$700 mn loss-making trading position. It was loss-making ‘long’ position based on the imminent drug trials announcement that was to be negative (i.e. SAC portfolio positions in experimental Alzheimer’s drug makers Elan Corp and Wyeth Ltd). Mr Martoma’s main appeal which is still pending will we expect seek reduced sentencing. Mr Martoma’s failure to extend bail from this appeal while his main appeal is pending maybe a court ‘side-show’ manoeuvre to assert insider trading enforcement. Whereas, FPM principals have repeatedly highlighted the “Punch and Judy” theatrical nature of American Juctice in ‘NSWF:Reputation’. ALL of the eight convicted individuals in this SAC-saga are still out on bail, as was Mr Martoma until this 3-judges appeal hearing. Doh! 

FPM also note that we are updating the “FPM Reputation BlackList” to reflect that few if any from SAC-saga and litany of litigations has yet seen the inside of a prison despite eight convictions! Internally, FPM discussing if Ridgeback Capital Management founder Wayne Holman makes it on the reputation list.

Please feel free to correct us Mr Preet Bharara? Mr Bharara was the DoJ presiding State attorney in the insider trading sting (codenamed “xxxxx”), launched demonstratively and conveniently as an enforcement witch-hunt for the depression-like financial crisis. Another betting FPM principal also wagers that Mr Bharara, widely touted for the top job in U.S. Justice, was not nominated for the sham oversight of proceedings in the SAC-saga. Preet is the failed front-runner for Attorney General of USA to replace outgoing head Eric Holder. On 10^th November Barack Obama nominated Attorney General as Loretta Lynch. This investigative critique explores another angle why Mr Bharara was snubbed. Mr Holder, the incumbent highest judicial authority in USA, under whose watch we witnessed the perfunctory litigation for larceny of net billions dollars from the public purse into private corporate profits for billionaire “establishment class” via Wall Street and Main Street corruption of capitalism, is walking on an FPM reputation tightrope. Under Mr Holder’s oversight, DoJ has expediently allowed ‘money to talk’ in the numerous high profile billion dollars litigations of corporate criminality (an exhaustive countdown list FPM have compiled in exchange for gratuity fee), and allowed executive white collar criminals to walk. Mr Holder: The organ grinder's money talks and monkeys get paid peanuts still – right?

FPM have profoundly described social status-quo as “plutocracy” or as we note unbound capitalism! FPM found an indepth investigative commentary on U.S. Justice but unrelated to our focus in financial and corporate matters: To Fight for Justice is to Fight the Law. If any genius out there believes in democracy please email us to shock us. As part of our active resistance against endemic corruption in capitalism, our story put yet another FPM big-picture way:

IF CAPITALISM IS IRREFUTABLY CORRUPT, AND THE MYOPIC ADHERENTS SUCH AS MEDIA, PUBLIC RELATIONS, FIDICICUARY ADMINSITRATORS ONLY PANDER, WITH POLITICIANS DISTRACTED FROM SERVING PEOPLE’S INTERESTS, THEN JUDICIARY IS ALSO A TOOL TO PROVIDE EXPEDIANT JUSTICE. THE RESULT IS ECONOMIC WEALTH INEQUALITY ABOUND. NOW FOR SOCIAL MOVEMENTS TO ESCALATE TO PEOPLE REVOLUTION.

Stop the Press! On 17^th November in a U.S. Manhattan court hearing Patricia Cohen, former wife of Steven A Cohen pursuing equitable divorce settlement since 1991, has managed to get Mr Cohen to be questioned in civil deposition hearing on 10^th December. This is another side-show which the “Artful Dodger” will presumably settle out of court eventually. FPM congratulate Ms Cohen’s tenacious pursuit in her warranted bid. If American Justice showed as much tenacity as Patricia, the U.S. taxpayer could have reaped multiple billions for its public pursue, instead they are facing austerity!   

Somethings got to give: Mr Martoma’s Family Cannot Bear Burden Alone

In all sense of U.S. Justice Mathew Martoma CANNOT BE SERIOUSLY given nine years prison sentence for his insider trading securities fraud when the man Steven A. Cohen and his eponymous firm S.A.C. Capital that he committed these crimes for walks free after grease-palming the justice system of the Americas! “Something surely gotta give!”, seems an appropriate declaration to suggest that this is NOT THE END of the SAC-saga. A saga very much degraded as much as it was chronicled by institutionally pandering mainstream financial press; but veritably recorded and actively disseminated by Fund Portfolio Management –FPM. Principals at FPM have focused on insider trading protagonists at SAC Capital, and its reputationally smeared investor Blackstone Group under our “No Smoke Without Fire: Of Reputation Risk”. See our first blog post “No Smoke Without Fire!”. 

Mr Martoma must be utterly devastated and wholly indignant with the penultimate outcome (he is naturally appealing the sentence!), after multi-years judicial proceedings. And it is that bitter emotion and pervasive discontent feeling that should consume him inside-out through the sentence appeal and ultimately towards righteous and natural justice prevailing in the end. No! FPM are not evangelical preachers, but as an aspiring and integral high priest class of financial investments.

For integral justice to prevail and for restoration of real ‘animal spirits’ i.e. confidence (as opposed to smokescreen and mirror tricks of pump-&-priming from QE et al) in the crooked financial and judicial systems are vivid evidence of enforcement and punishment for wrongdoing. Mr Martoma should cut a deal with prosecutors towards humbling beyond-everyday-justice billionaire Mr Cohen. FPM are heeded from our previous announcement in early June via a post entitled “The Calm Before The Storm: SAC Takeaways – Part 1”:

“…Mathew Martoma’s sentencing could yet herald a fault line of tremors for Mr Cohen personally and set a precedent for the hedge fund industry…

…FPM expects the severity of the formulaic and deterrent-message in the sentencing to be significantly monumental…

…additionally, to induce Mr Martoma to co-operate with US prosecutors given the 6-8 years sentencing we expect...

Mr Martoma would proffer the main cull for the baying public anger and show some moral rectitude rather than be the sacrificial lamb for Mr Cohen.”

That Judge Paul G. Gardephe exceeded sentencing guidelines of the U.S. Government’s probation department DOES INDEED send a signal to would-be corrupters of the capital market integrity. However, the message is largely diluted because the head of “web-of-securities-fraud” Mr Cohen has evaded ANY sort of punishment. Americans used to say the “The Buck stops here!”; if blame is not laid at the helm of S.A.C. Capital then the message of the severe sentence, full confiscation and its exemplification suggests “don’t get caught if you cheat” or worse still, “don’t cheat unless you can afford it”. The old English adage that has gotten corrupted by revisionist colonists reacting to “chip-on-shoulder” syndrome, with incorrigible migration from developing nations, is “If you can’t do the time don’t do the crime!”

The risk of getting caught is increasingly seen as “cost of doing business”, yet hedge funds and banks do not set aside capital for ‘risqué practices’, though executive heads knowingly and publically take “the three-wise-monkeys” attitude. In FPM’s “NSWF: Of Reputation Risk” enterprise this is one of the hedge fund due diligence aspects of operational affairs. Judge Gardephe aptly sensing that any financial confiscation from Mr Martoma via forfeitures would be reimbursed by Mr Cohen, has accordingly set a high watermark in sentencing. Philosophically speaking, can Mr Cohen compensate Mr Martoma, his beautiful wife Rosemary (one for Mr Martoma's wall!), and their three children for a father and his 9 years’ absence from family?   

Mathew's Martoma Beautiful Wife

This above article is FPM integral views on capital market for the new millennia. Please contact kks@fundportfoliomanagement.com for advisory services on our “NSWF: Of Reputation Risk” enterprise.

Hopes and Fears: Of Unbound Capitalism

“Few things are impossible to diligence and skill… many things difficult to design prove easy to performance” Samuel Johnson “The History of Rasselas”, 1759

In the above mentioned quote from an age old fable, the wise-man Imlac advises Rasselas, the Prince of Abyssinia, towards his plans to flee from Happy Valley; the palace enclave of princes and princesses of the Abysinnian royalty which is surrounded on all sides by seemingly impassable mountains.  

Conversely, FPM principal believe the beleaguered and despondent masses of wretched workers in our present mode of capitalism are attempting to breakaway the echelons of multi-billionaire owners and institutions towards seeking greater income parity in society. A mode of capitalism, that leads to our modern human society being organised as a plutocracy. Democracy is a specious and inappropriate label for our social rule. 
Since the recent catalytic event of the Great Recession, we have all seen the all-too-quickly dismissed global protests against unbounded capitalism and the disparity in wealth created in respective populations: the American 1% versus the 99%, the Arab Spring, London Riots of August 2011, etcetera are all compounding symbols of populist dissident discontent with socio-economic-politics of the day. Non-believers or doubters of the seismic change set in motion, sceptics and cynics alike, may cliché-wise state that “it has thus been the same in the past”. Yet some flash-points in the social history of man do escalate to greater consequences from a unique confluence of tethered events. A planetary alignment of sorts with which to herald unprecedented change no less. Witness the epochal events towards America’s first black president; though only some 60 years ago segregation of black and white people was the prevalent status-quo in the US.

Despite global pockets of dissent activism, what we have not fully seen is the greater collective coherent campaign that’s tantamount to a global people revolution. FPM sensationally and inspirationally views this new millennium as an opportunity for aspiration towards lasting change in attitudes, values and belief system in socio-economic political structures. Humanity’s hopes and fears are manifested through their ultimate conscious or inadvertent actions. This past week saw eco-political activity and developments that passages FPM’s long-held analysis of a) European Union break-up, b) the demise of the US Dollar hegemony, and c) the interrelated and subsequent re-engineering of economic capitalism.

The respective world events and activity we refer to above are a) the European Union member country elections resulting in superior votes for Leftist movements (in ‘Club Med’ south European countries), Nationalist and Independence swings among north European EU members (akin to India, a living-large democracy, electing Nationalist BJP party to lead the country in the previous weekend’s elections); b) the re-emerging superpowers conduct Russia-China cooperation and East China Sea naval exercises amid spy-wars and trade-wars and non-Dollar based trade agreements  and c) aside of the disquiet of the many anti-capitalist protests mentioned above and ones planned for next month around the June 17-18 G8 Summit in Northern Ireland, there was this past week a conference on Inclusive Capitalism co-hosted by the City of London Corporation and EL Rothschild investment firm. FPM perceives the Inclusive Capitalism Initiative conference, to tackle unbound capitalism, hosted by two of the greatest symbols of wealth, as dubious and somewhat spurious. As echoed by The Guardian national newspaper in the UK under the headline “Inclusive Capitalism Initiative is Trojan Horse to quell coming global revolt”. Nonetheless we would like hold a representative of the Rothschild dynasty, Lady Forester De Rothschild, and a host of the conference to account in FPM’s reputation risk thesis; and therefore re-post the peer's synopsis Bloomberg interview as below:

In case readers of this post reflect that FPM’s bandwagon aspirations for a new global co-existence is quixotic in actuality, and sensational in macro predictive value, we refer them to UN Secretary-General’s visit to meet Pope Francis at Vatican earlier this month. There the pontiff’s message to Ban Ki-moon was for progress in UN's Millennium Development Goals: 

"…have a real impact on the structural causes of poverty and hunger… Specifically, this involves challenging all forms of injustices and resisting the economy of exclusion, the throwaway culture and the culture of death which nowadays sadly risks becoming passively accepted…" 

FPM is curious about the Pope’s turn of phrase, “The Economy of Exclusion”; especially when contrasted with the indistinctness and abstract meaning of the “Inclusive Capitalism” initiative! The circus of hypocrisy is complete when one consider that the UN Millennium Development Goals was launched in 2000 with deadline in 2015! 

Stop The Press! As of 28th May, President Barack Obama gave US foreign policy statement (via the BBC), in an address to the elite military school “West Point. The sabre rattling response to Russia and China’s recent offsetting balance of power threats are clear in this statement from the West Point speech: 

“Here's my bottom line - America must always lead on the world stage.”