Showing posts with label Davos. Show all posts
Showing posts with label Davos. Show all posts

Sunday, January 21, 2018

Reuters — The World's Richest 1% Took Home 82% of Wealth Last Year, Oxfam Says

Four out of every five dollars of wealth generated in 2017 ended up in the pockets of the richest 1%, while the poorest half of humanity got nothing, a report published by Oxfam found on Monday.
As global political and business leaders gather for this week’s World Economic Forum annual meeting in Davos, Switzerland, the charity’s report highlights a global system that rewards the super-rich and neglects the poor....
“The economic model is not working at all,” Oxfam report co-author, Iñigo Macías Aymar, told the Thomson Reuters Foundation. “The way this wealth is being distributed we are really worried, it’s being concentrated in fewer hands.”...

Tuesday, January 17, 2017

President Xi's speech to Davos


World Economic Forum
President Xi's speech to Davos in full
Xi Jinping, President of the People's Republic of China, Office of the President of the People's Republic of China

Friday, January 13, 2017

Xinhua — Full Text of Chinese president's signed article in Swiss newspaper

Chinese President Xi Jinping published a signed article in the Swiss newspaper Neue Zurcher Zeitung on Friday under the title "A Shared Commitment to Practical Cooperation and Peaceful Development," ahead of his state visit to Switzerland, his attendance at the World Economic Forum Annual Meeting in Davos and a tour of Geneva-based international organizations.

Following is the full text of the article...
Ecns
Full Text of Chinese president's signed article in Swiss newspaper
Xinhua

Friday, January 22, 2016

Yves Smith — The 0.1%’s Marie Antoinette Moment


Blackstone’s Steve Schwarzman as Marie Antoinette.

Naked Capitalism
The 0.1%’s Marie Antoinette Moment
Yves Smith

Classic Davos panel: A bunch of self-important, narcissistic know-nothings, adored by their fellow elites, loftily describing how it's important to keep everyone else down

These guys are nauseating. I want to puke. They were wrong in the past and wrong now, but they still haul them out there on these panels.

The host, Andy Serwer, a complete idiot, but what a career this guy has put together: Time Inc., now big shot at Yahoo, yet every other word out of his mouth, "um, um, um..."

The Argentina finance minister, a total neoliberal puppet, championing the same, old, destructive, usurping, neoliberal bullshit...deregulation, privatization, yada, yada and of course talking about the "failed policies of the past" (yes, because their asshole leaders never went full ahead with those policies. They always played ball with Wall Street.)

Watch it and puke.

Tuesday, January 20, 2015

I will be on RT today at 1pm New York time

I will be appearing on RT today at 1pm NY time talking about whether or not the Davos gathering is a waste of time. Guess what my response will be? Hahaa.

Wednesday, January 29, 2014

Encouraged By Their "Success" In Europe, European Investors Position East Africa For Looting Too

   (Commentary posted by Roger Erickson)



Whoa!

This is quite a story. Not only is the whole financial system WAYYYYYY more trouble than it's worth, the euro system is the worst of the worst, including deadly trouble.

Looting Rwanda is what Davos touts as Euro investing options?

The confluence of statements in this Rwanda story also implies a bevy of Rwandan elites eager to sell the rest of their citizens to the highest bidders. (Those bidders will also throw in assassinations, gratis, as a show of good will? Wow!)

This is so worth reading that a few comments are posted in-line [bold text].

Rwanda emerges as East Africa’s investment gateway

Rwanda’s finance minister Claver Gatete waxes lyrical over the country’s bid to become an international-investment hub for the budding East African Community and defends the administration’s security policy.

Claver Gatete, Rwanda’s minister of finance, has but only a few minutes to spare on the phone with Euromoney as he darts from one meeting to another at this year’s World Economic Forum in Davos, Switzerland. The minister is upbeat as investors praise the administration’s deft stewardship of the economy, which is rapidly entrenching its status as an innovative hub for central and east Africa. Gatete’s gallivanting zeal as the country’s chief sherpa on the global economic stage is designed to send a clear message to the international investment community: Rwanda is open to global business.

The Davos exposure comes as Rwanda braces for a landmark economic event in May – the annual African Development Bank forum. Gatete says the event will prove a watershed in the country’s economic rehabilitation in its post-conflict age. “Having the forum in Rwanda this year is a vote of confidence for us,” he says. “It shows the region and the rest of the international community that we are capable of successfully hosting such a central event in African development.”

Rwanda has proven itself to be an extraordinary African success story relative to expectations in 1995. Although there was a slight slowdown in economic growth in 2013, between 2001 and 2012, real GDP growth averaged 8.1% per year and, between 2006 and 2011, an estimated one million people were pulled out of poverty. Underscoring the country’s economic ascent, the Kigali Convention Centre, an impressive glass dome that will become a focal point of the city upon completion, was financed by a successful Eurobond issue in April 2013.

The debut issue was priced at the tighter end to yield 6.875% and attracted a $3.5 billion order book – more than eight-and-a-half times the issue size and more than half the country’s GDP. The conference centre will house a five-star hotel with 292 rooms, a large conference room with a capacity to hold 2,600 people, as well as 24,000 square metres of office space.

The administration hopes the China-backed project won’t in the coming years be seen as an under-used vainglorious construction effort. 
[rge: Good luck with that.] 
Instead, it’s hoped it will be seen as a proactive capacity-building project as Rwanda attracts greater FDI flows, buoyed by its reputation as a regional business and transport hub for the East African Community.

Early signs are encouraging. Last year, the World Bank ranked Rwanda – a commodity-poor landlocked nation – the second-easiest country to conduct business in sub-Saharan Africa, after Mauritius.
[rge: That defines success? Or could that WB ranking be calling looters to Rwanda? After all, "pro-active" capacity building has a 'sterling' track record. Even in China. :) ]
Globally, Rwanda is ranked at 32. The Rwanda Development Board has drastically cut the time it takes to register a business in the country: it’s possible to be in and out of their offices with all necessary licences in less than six hours. 
[rge: For foreigners only, or local citizens as well? They don't say.]
However, questions over president Paul Kagame’s human-rights record, and tolerance of dissent continues to dog the administration, testing international support. In the latter part of 2012, Kagame was accused of supporting the Democratic Republic of Congo’s M23 rebels in the Great Lakes conflict. Gatete is anxious to reject any accusations of collusion. “It was proven that the government of Rwanda had not provided any assistance to [the M23],” he says. “The country got all of its aid back, all bilateral and multilateral agreements were restored, and donors are continuing to offer their support with no exceptions. As I have said, confidence in Rwanda – politically and economically – remains firm.” He adds: “We work closely with the international community to reach a peaceful solution in the Congo, nothing more.”

However, Rwanda’s international standing came under the spotlight again recently, after the US criticized scathing comments made by Kagame, who claimed that political opponents ought to be treated harshly. The remark came after one of his exiled critics, Patrick Karegeya – a former director of external intelligence and a former opposition leader – was found dead in a hotel room in Johannesburg, raising questions about the administration’s involvement. “We didn’t do it, but my question is: shouldn’t we have done it?” said Kagame at prayer breakfast on January 12, as was reported by Reuters.

Says Gatete: “Karegeya was part of the opposition and was responsible for setting off bombs in Kigali, but the death had nothing to do with us and we will leave the South African government to look into the case. All Kagame is trying to do is protect the country.” Anxious to shift back into Rwanda’s international-investment bid, Gatete cites two landmark projects that highlight the country’s dynamism. “One of the most interesting [projects] is Visa International’s project here to roll out mobile payments and transfers,” he says. “If it’s successful, it will be rolled out in the rest of the region. “The East African Commodities Exchange is another example. Rwanda was chosen for the site of this despite its size and because of its insight into business. Rwanda is a good place to do trials such as this one.

We are a government that international companies can trust and it’s a place where business runs smoothly.”
[rge: A place even Al Capone couldn't resist? With the way paved by missionaries of finance, hosting prayer meetings?]
The exchange aims to increase liquidity and offer a commodities market for 130 million people in the region. One of its goals is to create a platform for smaller, regional producers and give them access to futures and options – an ambitious project given nascent financial infrastructure, limited listed equity products and issuers, as well as illiquidity. Nevertheless, the commodities exchange is another step towards East African integration, aimed squarely at the economies of scale.

“We already have freedom of movement and freedom to seek employment within the region, which helps business in Rwanda and elsewhere,” says Gatete. “We already have certain things in place, including a customs union and a common market. “The next phase will be a monetary union and a single currency.”

[rge: You just HAD to expect that that was coming at some point, given input from the looters in Brussels.]
Few consider the integration project will be plain sailing, but Gatete’s enterprising zeal highlights how Rwanda – the small country with big ambitions – represents a competitive challenge and opportunity for its reform-shy regional neighbours.

[rge: Right! "Painful structural adjustments will be necessary." Just like in Greece. Maybe Rwanda's "reform-shy" neighbors are right to hunker down & hope to survive another round of colonialism. Evolutionary resiliency is, after all, built through maintenance of diversity, not the brittle "efficiency" of over-adapting everything to transient contexts. Every time "we're all (anything-uniform) now," we're mostly all dead just one context later, when the Luddites offer their standard excuse that "no Luddite could have predicted this!"]




Jonathan Larson — The latest scummy bankster behavior

The World Economic Forum is being held right now in Davos Switzerland. This gathering of the über Predators is always good for a few "let them eat cake" quotes and this time is no exception. A guy named Ermotti thinks life is hard enough without folks picking on the moneychangers. Poor bastard doesn't quite understand why folks don't just LOVE the thieving classes.

Watching these scum start to squirm is satisfying only because we are deprived of seeing them marched off to prisons. Until we see the return to honest banking, all the other big problems—including climate change—cannot and will not be solved.
Real Economics
The latest scummy bankster behavior
Jonathan Larson

Friday, January 24, 2014

Transnational Institute — State of Power 2014


The Transnational Institute is proud to launch its third annual ‘State of Power’ report as the World Economic Forum meets in Davos. This anthology exposes and analyses the principal power-brokers, members of the “Davos class”, who have caused financial, economic, social and ecological crises worldwide.

Unless we know which elites control our wealth and resources, understand how they influence political and social processes, and can identify the systems, structures and policies by which they maintain their power, TNI believes our hopes for advancing social and environmental justice are slim. Justice demands a recalibration of power and that requires us to better understand it.

This collection of essays and accompanying infographics draws attention to key dimensions of power and its exercise in our globalised world. These contributions first highlight how power is hidden and concealed. The peasants who lose land or whose river is polluted by mining may not know the name of the owner or corporation threatening their livelihood. They certainly will not know which transnationals are buying the minerals, the politicians who signed the trade deals to facilitate its extraction, or the elusive corporate lobbying groups that successfully pushed through those deals.
Transnational Institute
State of Power 2014 (PDF download)
(h/t Matias Vernengo of Naked Keynesianism)

MMT at the World Economic Forum




















Tuesday, January 21, 2014

How Best To Prevent An Overly Narrow, Capitalist and "Corporate" Approach To National Policy Development?

   (Commentary posted by Roger Erickson)



While we watch the Davos Dun Masters contemplate how to more gracefully co-opt Democracy worldwide, one can't help but recognize an underlying pattern playing out in every nation pretending to practice democracy.

How many have seen this particular policy example, concerning increasingly concentrated, corporate ownership of crop plant development?

While the details of corporate crop plant development are interesting in their own right, it's simply another example, of the same root process issue seen everywhere. The Davos Dun Masters own a million of them, in every industry known to man.

It is NOT the particular tasks that vex us!

It is our methods for handling an endless stream of tasks that is handicapping us.

Must every market process generated by a supposedly social species, inexorably be owned by a tiny subset of the supposedly "social" animals that create the culture? That, by definition, is an oxymoron, if you know the definition of a "social" species and the benefits that being social bestows.

Please read on. And please focus here on the methods for achieving a social culture, not the particular cause, plus the follow-on, MAINTENANCE methods required to continue benefitting from being a culture capable of generating dynamic markets.

Opposing Monsanto dominance of genetically engineered crop plants?

It's not entirely clear that raising $ to oppose Monsanto is the best selling point, yet the long term methods needed to best prevent the detriments of overly narrow policy development ... now those are worth thinking VERY CAREFULLY about.

In this case, how best might we prevent a narrow, "corporate" approach to crop plant breeding?

First, what is the Desired Outcome here, for any nation?

Suggestion: No matter what good eventually comes from genetic engineering of crop plants, it should NOT be predominantly owned by a narrow set of stakeholders.

Overly narrow stakeholder sets in a democracy? That's just disparity & feudalism under a different guise!

Or, if you prefer, another feeble attempt at Central Planning.

When it comes to comparing capitalism and communism, what is the functional difference? Both feature only slightly different approaches to achieving Central Planning by an oligarchy. Call them crude vs sophisticated approaches to mercantilism. The theory they hide behind matters not. It's the actual implementation that matters to us.

Overly Centralized Planning - no matter how it's achieved - always goes awry precisely because of the failure to adequately sample the required feedback spectrum.

If we want and have a Democracy, just USE it?

There is NEVER any adaptive value in letting social processes by owned by a few. Translation: static wealth disparity cuts required social processes off from necessary social feedback. Therefore, society degrades.

Surely there's a better way?

Who says capitalism is necessarily inimicable to Democracy? 

If my logic, below is correct, then capitalism & democracy needn't comprise an oxymoron. Just don't treat capitalism as the ONLY tool in your social toolkit.

We're back to a very simple point. There is no adaptive path - or transient point of stability - in the natural world, that is not a dynamic equilibrium between multiple, conflicting forces. Or call them conflicting factions, if you're having trouble diversifying valuable analogies fast enough.

What is it that a social species hosting a human culture really wants?

We want to stay on a dynamic, adaptive path. So, we constantly need new methods for chasing that unpredictable path. THAT IS THE ONLY THING THAT KEEPS US ALIVE!

Narrow ownership of something in a given context is meaningless for groups who survive only by successfully migrating through continually changing contexts. Thoreau, among others, warned us of that, long ago.

The most valuable skills to own are our dynamic abilities, namely our abilities to detect every one of our methods that we need to change, and to drive coordinated changes ASAP. As Wallace & Darwin pointed out 150 years ago, our Adaptive Rate is literally our lifeblood. Or, as Shewhart put it, 80 years ago, the highest cost is our cost of coordinating the changes that comprise Adaptive Rate.

The only thing Thoreau, Darwin & Shewhart didn't specify was the obvious corollary.

Since methods drive results, it is our rate of discovering & developing methods that allows us to generate and reap the insanely great returns on coordination. Apparently "T, D & S" assumed that American electorates would be better educated than PT Barnum did. 

Our core dilemma boils down to this. If "T, D & S" were right about our methods for maintaining the quality of the American electorate, then we'll be fine. If PT Barnum was right, then you may as well start looking for another country to migrate to.

Once said that way, it's clear that overly narrow management of static assets are a burden not only to individuals, but a dangerous brake on our national Adaptive Rate - as Thoreau pointed out 170 years ago.
"Most of the luxuries and many of the so-called comforts of life are not only not indispensable, but positive hindrances to the elevation of mankind."   Thoreau
Having access, on-demand, to those luxuries is not the problem. The personal time tied up in hoarding selective access to them is the hindrance. The act of excessive hoarding takes the hoarder out of social play, and compounds that damage by slowing the Adaptive Rate of the aggregate. The result is a skyrocketing Output Gap, due to idling of static assets.

Every tribal society on earth - even our own, tribal ancestors - warned us of this, from the beginning. Our dilemma is that the staggering return on coordination stockpiles static assets. Then it takes time for our dynamic assets to see how to optimally leverage those static assets. That group calculation time is typically grossly extended by the personal hoarding of what are, by default, Central Planners. To hoard is to express Central Planning, which only slows increasingly dynamic use of existing static assets, and hence slows national Adaptive Rate.

So, the struggle between personal and social temptations continues, unabated. Only those cultures able to discriminate the greater benefit of dynamic, social assets survive. There are few, if any, real hermits left, for good reason. They can't compete, except as parasites living off the human social culture they can't comprehend.

Personal hoarding degrades the incredible, group efficiency of pass-through economic methods. Why? Because it degrades & slows our ability to leverage those static assets for pursuit of the most valuable assets of all - our dynamic assets, which allow us to reap the return on coordination.

This is NOT rocket science. Just keep capitalism as one of many accounting metrics, and use them all as checks and balances upon one another. What could be more simple?

That way we can have our supra-tribal population size, our increased diversity, and our pass-through economy too. What's to worry about? That outcome is better than having our cake & eating it too.









Sunday, January 29, 2012

Davos policymakers playing Global Apocalypse


If the world economy was a video game, the central bankers and politicians have been struggling to master the controls – and remain stuck on the first level.
Read it at The Guardian (UK)
Davos policymakers are playing Global Apocalypse – and running out of lives
by Larry Elliott | Economics editor
(h/t Kevin Fathi via email)

Saturday, January 28, 2012

Japanese economic minister — requirements for a new growth model


At the individual level we have seen unambiguous signs that the economic climate is contributing to discontent. Public sentiment has undergone a distinct shift, and we can be far less certain that a return to previous levels of economic growth can erase this dissatisfaction. Through the Occupy Wall Street movement and other demonstrations, we have heard not only a message of anger at the current situation, but the desire for something else; for something more. The search is underway, particularly among the young people of the world, for a new model of growth.
A fundamental assertion for any new growth model, that is, dynamic and inclusive growth, is that three basic elements -- the economy, society, and the environment -- are each integral and must all contribute to overall improvement. Such thinking is not superfluous or a luxury that can only be afforded during periods of strong economic performance. It is critical to recognize that we must seek to provide not only prosperity, but also leave behind a healthy social and natural environment for future generations.
The new growth model must, in other words, impart more than economic gain. In recent years governments around the world, including Japan, have quietly turned their attention to research into the question of happiness and quality of life. How do we measure, or even define, such a concept? What factors contribute? In an era when so many people face stark economic challenges, does it even matter? Fundamentally, how do we meet the needs of society, and of future generations?
Research and, one could argue, the message from demonstrations around the world, would indicate that the contribution made by society and the environment play an integral role in ensuring our citizens realize their personal goals. Such factors are therefore critical to both prosperity and sustainability; an important part of the new growth model.
Read it at The Huffington Post
The Search for a New Growth Model
Motohisa Furukawa | Japanese Economic Minister

Looks like at least some of the TPTB are listening to the voice of protest and getting the message that globalization is not working based on the model in terms of which it is being applied.

Furukawa also talks about introducing quality rather than only considering quantity, which is border on superstition for most mainstream economists.

He also introduces the economy, society, and the environment as macroeconomic trifecta requiring resolution instead of only the traditional growth of production, employment, and price stability.

David Cay Johnston: Sovereign Governments Can't Go Broke In Their Own Currency


Austerity supporters are selling the idea that governments, like families, must cut back when income shrinks. But economically, governments are not like families.
Firing teachers, cops and government clerks will, for sure, reduce public spending. But budgets, like the song of the Sirens, are only part of the story. Listen only to the alluring lyrics and, like the many voyagers before Odysseus, we will suffer disastrous consequences - in our case falling incomes and worsening economies.
The full economic story begins with this principle taught to every economics student: spending equals income and income equals spending. Cut spending and incomes must fall; cut incomes and spending must fall.
Those who disagree with this say that only private spending can create wealth and that government spending is inefficient. I think the first argument is wrong, but the second is often true, which is why citizens need to pay close attention to their government.
When private spending shrinks, then either government spending must grow to make up for it or the other side of the equation, income, must shrink.
If we increase spending today by borrowing, we create a claim on future income. Families with debt must divert part of their future income to interest and principal to service that debt or go bankrupt. Governments are different, provided they have monopoly control of their currency. By definition, no sovereign government can ever go broke in its own currency.
Read the whole thing at The Huffington Post
David Cay Johnston: Sovereign Governments Can't Go Broke In Their Own Currency
By David Cay Johnston | Reuters
(The author is a Reuters columnist. The opinions expressed are his own.)

Sound like MMT? It's no coincidence. I'm sure we will be hearing more like this from him.

Friday, January 27, 2012

Expansionary fiscal austerity all the rage at Davos


DAVOS, Switzerland -- As much of the globe grapples with lean economic prospects, and as Europe in particular sinks toward a recession that could spread to multiple shores, world leaders gathered here this week appear to be operating with a rough consensus over how to proceed: Attack budget deficits by cutting spending in a bid to sow confidence in bond markets.
The logic of austerity as curative assumes that the basic problem limiting economic growth is investor fears about the size of government budget deficits, and visions that the bond market may suddenly demand sharply higher rates of interest to enable lending. Governments could be forced to impose growth-killing tax increases to square their books. With such worries in mind, those in control of money are supposedly hewing to the sidelines, depriving economies of credit and investment.
Among finance ministers participating here at the annual World Economic Forum, the word “uncertainty” has been getting a vigorous workout. When times are troubled, goes the thinking, lack of clarity provokes investors to imagine the worst, and to act accordingly. They hold tight to their money, producing self-fulfilling prophesies of pullback.
“If you want to have more internal demand, you have to have confidence,” the German finance minister Wolfgang Schaeuble declared here Friday morning, during a discussion about the future of the eurozone. “If you make your deficit sustainable, people will gain confidence.”
But among some economists, deficit reduction as a growth strategy amounts to a wrong-headed leap of faith.
“Austerity won’t even prevent the next crisis, let alone solve the current one,” the Nobel laureate economist Joseph Stiglitz told The Huffington Post.
Cutting government spending in times of economic weakness further reduces demand for goods and services, he said, which reduces incentives for businesses to invest and hire -- a self-reinforcing dynamic of diminishing fortunes.
This is followed by George Soros's warning about debt-deflation as the risk of austerity, along with his accusing Germany of economic imperialism. Ouch.

Dr. Doom (Nouriel Roubini), too, predicting, well, doom.

Oh, and Geithner is on board with austerity “for parts of Europe, for a long period of time...."

Read it at The Huffington Post
World Economic Forum: At Davos, Austerity Reigns
by Peter S. Goodman

This is way beyond clueless and even exceeds moronic. It is malfeasance. "Ignorance is no excuse before the law." 

Belief in the confidence fairy is magical thinking. These people really do act like wizards waving their magic wands around.

Tuesday, January 24, 2012

Steve Keen — The Future of Economics


I was approached by Bloomberg to write an 800-word feature on “The Future of Economics” for the World Economic Forum, which starts today in Davos. I haven’t heard back as to whether they actually ran it in their newsletter, but hopefully the Davos participants had the following item in their breakfast reading this morning.
Read it at Steve Keen's DebtWatch
The Future of Economics 
by Steve Keen

World Social Forum (Brazil) v. World Economic Forum (Davos)


BRASILIA — Tens of thousands of anti-capitalist militants, including members of Spain’s “Indignant” movement and the US Occupy Wall Street, are due to attend the World Social Forum, which opens Tuesday in Brazil.
The forum is an alliance of social movements opposed to the World Economic Forum, the annual gathering of the world’s economic and political elites being held at the same time in the Swiss resort of Davos.
From Tuesday to Sunday, participants in the World Social Forum will meet in the southern Brazilian city of Porto Alegre to weigh alternative solutions to the global economic crisis.

President Dilma Rousseff is expected to attend the event along with 70,000 other people.
Under the slogan “Capitalist crisis, Social and Environmental Justice,” the forum aims to lay the groundwork for a peoples’ summit of social movements to be held in parallel to the high-level UN conference on sustainable development scheduled for June in Rio.
Read the rest at Raw Story
Thousands to attend anti-capitalist forum in Brazil
by Agence France-Presse