Posts Tagged ‘banking’

About the Midlife Crisis

Tuesday, September 30th, 2008

bankersThe Amount of Trust you are able to give to an other is based on your experience with others. During his life a human develops a Trust-Pattern.

Every time when something goes wrong this pattern is evaluated and adjusted.

 When the pattern is highly predictable it becomes a self-fulfilling prophesy. The prophesy controls the behavior of a person. This behavior is called the personality.

According to Interpersonal Theory there are two variabels that explain a person’s personality. These variables are called Communion (Connected vs Disconnected) and Agency (I vs the Other(s)). Psychopathologic Behavior occurs when a Human reacts according to only one variable. You are Paranoid (Extremely Dominant) when you always react out of High Agency. You want to Control everything and everybody.

Agency generates Correspondent behavior. A highly Dominant person is not able to create a fruitfull relationship with another Dominant person. They always end up in a Conflict. Low Agency (Friendliness) invites Friendliness. Friendly people always Avoid a Conflict.

Communion generates Reciprocal behavior. Disconnected, Low Communion, Humans, Love to be Dominated (High Agency) and Connected, High Communion, Adults love to Care for Humans with a Low Self-esteem (Low Agency).

bank clerkThe level of Communion and Agency changes with Age. A child starts its life with a high level of Communion. It is highly dependent on his parents.

In the phase of Puberty the Agentic variable rises. The child wants to explore the Self and disconnects the relationship with the Caretaker(s) and starts to Explore the outside world.

At the end of this phase Adulthood is reached. Later in life the level of Communion rises again and the level of Dominance lowers again. Old people become dependent on the help of others and are mostly more tolerant.

When we combine the waves of Communion and Agency in Life, we are able to define the Four Stages of the Human Life Cycle.

tellerbankThe first stage (Childhood) ends when the Down path of Communion crosses the Up path of Agency.

The second stage (Adulthood) ends when Agency is Up and the Communion is Down.

In the third stage (MidLife) the second crossing appears (Down Agency, Up Communion). Life ends in the same state it started (High Communion, Low Agency, Old Age).

Humans apply the concepts of Personality and Life-Cycle to Everything that is Acting (Organisms (Cat, Cow, ), Organizations,  and Forces (Sun, Wind))).

So Let’s apply these Concepts to the Financial Industry.

The Agency of the Financial Industry is High so they must have passed the state of Childhood, Puberty and Adulthood. The Communion of the Financial Industry is very Low. If we look at the Life Cycle Model we must conclude they are in or have entered the Stage MidLife.

What Happens when You Enter MidLife?

capitlistPictSome people experience a so called Mid-Life-Crisis.

Individuals experiencing a Mid-Life Crisis know that the Downfall is going to happen soon. They are unable to confront reality and Regress to the State of Puberty.

They start to gamble, abuse alcohol or drugs, buy unusual or expensive items, are depressive and pay special attention to their physical appearance. They want to be Young again.

Bankers are Gambling with Your money, aquire many unusual and expensive items (Cars, Clothing) and pay a lot of attention to their physical appearance (Buildings). They do Everything to Impress their Customers.

Why has the Financial System moved into a Midlife Crisis?

When you enter a Midlife Crisis you suddenly come aware of the fact that Life is very Boring. You are doing the same thing day after day. Normal Banking is boring. Its about moving money that is saved by people to people who need money. When Bankers found out Banking is really a simple process they started to invent exiting processes to become Young again.

bankerYou have to admit that gambling is very exiting when you discover a Way to Gamble and Never Lose called Financial Derivatives.

What to do with a person who is in a Midlife Crisis?

The only way to move out of a Midlife Crisis is to Accept Life As It Is. If you are bored in your work find something outside your work (a hobby) or look for another job.

What Has to be the Next Step?

Banks have to return to their Core Business. They have to Accept Savings and give Credit in a Predictable Way. This is the only way to give people and companies the feeling they are able to Trust a Bank. Life is really Simple.

LINKS

A Website about the MidLife Crisis

How to solve an Addiction to Gambling

About Financial Risk Management

How to Solve the Banking Crisis

About Ponzi Schemes in the Financial Industry

About Financial Bubbles

About the Games Played in the Financial Industry

Why the Financial Crisis is still not ended 

 

 

About the End of the Banking System

Sunday, May 18th, 2008

I left the Banking Industry in 1997 because I did not want to be part of an environment where cooperation and compassion was gone. At that time I expected a major crisis. It took ten years until the crisis of the Banking Industry was very visible to everybody.

Until now I don’t think many people are aware of what is really happening and what will finally happen. We are approaching the End of the Banking System. In this blog I will show you that everybody was aware of the reasons behind the crisis. The reasons are extreme greediness and incompetence.

The solution to the crisis is simple. We are able to create a New System with Ease. It is just a matter of time when this will happen.

Let me start with two citations out of an article of Fortune April 1, 2008: “half the huge gains from 2003 to mid-2007 could be attributed to increased leverage – otherwise known as gambling with borrowed money – that magnified earnings in a boom. If a firm’s portfolio is leveraged at 33 to 1, it takes a mere drop of 3% to wipe out its entire capital“. “The compensation system is a fundamental problem. The system rewards swashbuckling behavior by everyone from traders to CEOs“.

Bankers are Gambling with Your Money. When they Win they get huge bonusses. When they Lose You Pay their Debts. You Pay their Debts because Your Investment has evaporated and/or because You Pay more Taxes.

Related post: Casinos en ligne .

The Investment Bankers know everything that is happening in the Market months before You know What is Happening. They are not allowed to use this knowledge (Chinese Walls) but Bankers are Humans and Sometimes they Forget to Keep their Mouths Shut.

The Chinese Wall is an ethical barrier between different divisions of a financial institution to avoid conflict of interest. A Chinese Wall is said to exist, for example, between the corporate-advisory area and the brokering department to separate those giving corporate advice on takeovers from those advising clients about buying shares. In spite of Chinese Walls, these conflicts of interest allegedly arose during the heyday of the Dot/Com era, when financial research analysts published dishonest positive analysis on companies in which they, or related parties, owned shares.

The U.S. government has since passed laws strengthening the Chinese Wall concept (e.g. Sarbanes-Oxley Act) with the desire to more carefully formalize and prevent such conflicts.The big problem with procedures is that they are imaginary.

In reality people always find a way to avoid procedures. It all comes down to two things Personal Ethics and Transparent Working Methods implemented in “simple” IT-Systems. As you will see later the Personal Ethics is highly surpressed by the Corporate Culture and the IT-Systems are exceptional Complex.

 Now two citations out of an article of Bank Director, Second Quarter 2003 by John R. Engen.

The past few years have witnessed the big-money failures of institutions, due to fraud or risky business strategies“”But L. William Seidman, FDIC chairman in the Reagan and Bush administrations, says regulators shouldn’t be judged too harshly. The industry turned in record profits of $105.4 billion in 2002, up 21% from the previous year“. “To go through the stock-market drop we’ve had, 9/11, and everything else without a major banking problem shows the value of having someone looking over your shoulder“.

The Regulators knew and know about the Fraud and Risky Business Strategies but their Theory is simple. When the Banks make a Profit Everything Works Fine. The Banks earned the Profit by Gambling. The Regulators just watch over the shoulder of the Banks and are Very Happy about the Gambling System. It always Cures Itself. Some People Win, Some People Lose. It is all in the Game. Funny Enough the Winners are Always situated in the environment of the Banking Business and the losers are Small Investors.

A few citations out of an articles about Index Funds in The New York Times (May 17, 2008): “It has been long established that even most active fund managers fail to beat the overall market on a regular basis”"Stock bubbles are examples of huge inefficiencies, in which prices get completely out of whack for months and even years at a time” “We have people investing tens of billions of dollars in index funds and they are getting drawn into bubbles“.

The Stock Market is a Gambling Machine and the Value of your Stocks has nothing the do with the Real value of Your Stocks. Nobody is able to predict the effects of the manipulations of “Greedy” Bankers on the Market. The only people that really profit are the bankers themselves. They create the Stock Bubbles and Collect the Bonuses. The real value of your stocks is the dividend a company pays to his investors. Many Stocks are Highly Overvalued.

Let us move to the Employees. A few citations out of New York Times (May 16, 2008):

You’re seeing a very, very inconsistent message to employees,” “It’s, ‘I don’t know when it’s going to happen, it may be tomorrow, it may be next month; we may be able to keep you, we may not.’ “banks are keeping employees in the dark about the size and timing of layoffs”. “She did not return to her office and ended up asking the bank to send her the photos of her son that she kept on her desk”. “many laid-off employees are not allowed to return to their desks, because the banks fear departing employees will try to take valuable colleagues or clients with them” “Euphemisms for layoffs are making the rounds too. Banks do not just fire people anymore. They engage in “head count reduction,” “reduction in force” and “redundancies.” And gallows humor is rampant. One joke: A banker calls a colleague and asks, “Are you busy? Or are you lying?”

Investment Banks use Fear to Manipulate Their Employees. You Never Know if you are able to Keep your Job. When You Live in Fear You never tell the Truth. You are Busy or you are Lying.

When You have to Perform to keep You’re Job You have to take High Risks. You keep you’re mouth about these Risks because in a Fear Based Culture You never talk about Failures. You hide them and Hope Nobody will See. When You tell Somebody about the big problems that could happen You are Fired because Everybody Knows and Nobody Wants To Know. “Après moi, le déluge” (“After me, the deluge”)(Louis XV).

Again the New York Times (May 17, 2008):

Few employers want us around for 40 years, so our income is likely to have ups and downs and disappear altogether for brief periods between jobs. Saving for retirement is now mostly our responsibility, too. Health insurance, for those of us who have it and manage to keep it, requires increasingly large amounts of money out of our pockets. The list goes on and on”. “As fewer people have pensions and more retirees live longer, an increasing number of people may need financial help from their children” “Financial planners may not have all the answers, or the best answers, all of the time” “Thankfully, a number of Web communities and blogs have grown up around almost every aspect of spending and saving“.

Many more people will be Without a Pension. They have Lost their Investment at the Stock Market. Perhaps You even have to help you’re Parents. To do this You have to Save Money but You don’t know what to do with the Money You have Saved. The best way to get an independent advice is to use Networks of Experienced Customers. Never Ask a Bank to Give you an Advice.

And the Customers. Citations out of the Telegraph (16/05/2008):

The conventional wisdom in financial markets is that the time to move back into bank stocks is just after a slew of rights issues has depressed prices. There are, however, good reasons not to give the banking sector the benefit of the doubt. At the best of times, as Anthony Bolton, the fund manager who ran Fidelity’s Special Situations fund for many years, observes, banks “are the most opaque of all companies”. With a building materials company, you more or less know that, barring fraud, the right amount of stock is there. With a bank, it is much harder for investors to understand the assets on the balance sheet; and in the course of the credit crisis, it has transpired that the banks themselves experienced severe difficulties in this area“.

Nobody Understands the Financial Practises of a Bank. Even the Bankers Themselves don’t Understand what they are Doing. I am not convinced Banks have kept all the Data about You in the Right Order. Someday You will Find Out that You’re Savings are Gone and Nobody Knows Why.

It does not help to create Chinese Walls when Nobody Knows what is really happening. The Controllers are and were unable to understand the complicated financial structures that were created. The Book-Keeping systems are not Covering the Truth. Even very Bright Mathematicians are unable to value the Complicated Financial Transactions. The Effect is that Dealers are able to go their own way without a proper monitoring instrument. This has created many “unexpected” situations where low-level Dealers were able to build High-Risk Positions for a Long Time without the Knowledge of the Management. When the Gambling failed the Bank lost billions.

Reactions of readers to this Column:

I still think banks are greedy and lack integrety but they will bounce back because they are essential to a capitalist system” How can anyone believe a word they now say? Furthermore they remain in position, collecting their millions”. “It is the real investors namely pension savers and private investors who have no meaningful say and ultimately pay the price for this corrupt state of affairs, deception and lack of accountability” “Don’t let the politicians throw our money at bailing these irresponsible bankers out” “I am suffering in this downturn, and feel worried about the future. But we all have had a hand in this fiasco and we all can be affected by events (floods, droughts, disease, terrorism, earthquakes, storms and wars) which not wanted by anyone, we must plan for“.

The Customers are Powerless and Very Angry but there is no Alternative. We have to Live with the Greedy, non-Ethical Capitalistic System.

It is wrong to associate Banks with the Capitalistic System. Everywhere in the World people are Saving and Borrowing Money. The fundamental principle that was lost is to take Responsibility for what You are doing with the Money of Others. There is nothing wrong when you Gamble with you’re own money but don’t Gamble with the Money of Others. It is as simple as that.

My Conclusion:

There is Really Nothing that stops Us (the Customers) to start a Bank of our Own. The Technology is there and the Customers are really fed up with the Current System.

There are already Customers who are advising Customers for nothing. It will be very easy to transfer money without the Use of the Banking Payment Systems. If we agree on one principle, “You are trusted until you prove the opposite” it will be very easy to make a loan. There are already Systems Operational who are doing this. They are called Cooperations.

Nobody is taking the initiative to create a new Banking Infrastructure. Everybody is waiting for Everybody.

The Regulators wait and see. They hope the System will recover. I think it has died recently and nothing will help us to revive the dead body.

How the Hedge Funds are Starving a 100 Million People

Friday, April 25th, 2008

The Banking Business has created the Credit-Crunch. The Banking Business has created the Great Depression. The Banking Business has created many Bubbles. The Banking Business has advised people to buy shares while they knew the shares were highly overvalued. Now the Banking Business is stimulating the Food Crisis in the World.

 Analysis being carried out by World Food Program (WFP) estimates that about 100 million people have been pushed deeper into poverty by the high food prices.

The “Silent Tsunami” will affect more people on every continent than the real Tsunami in 2004. It will destroy more livelihoods and the nutrition losses will hurt children for a lifetime.

Everybody believes that Prices Rise when there is a Shortage of Something. The highest bidder takes all.

The main cause of the World Wide Food Shortage is Western Way of Producing, Selling and Wasting Food. We are Manipulating the Market and The Consumer but we are also destroying nature by fertilizers and genetical manipulated seeds. We are also throwing away a enormouss amount of food.

The Multi-Natioals produce genetic manipulated seeds, artificial fertilizers and artificial food. They control the Transportation, the Media, The Financial streams and the Governments (The World Bank). The multi-national food companies are making record profits.
 
The profit of Monsanto has doubled. Similarly, the Mosaic Company, one of the world’s largest fertiliser companies, saw its income rise more than 12-fold. The prices of some kinds of fertiliser have more than tripled over the past year as demand has outstripped supply. As a result, plans to increase harvests in developing countries have been hit hard.

The Farmers at the beginning of the production lines are mostly poor. They will not profit from the rise of the prices of their products. This is not something new. The Poor get poorer and the Rich get richer. They are blocked to enter the Market. They are also blocked to produce their own natural fertilizers and their own natural seeds. Most of them are now unable to be self-sufficient. They have to buy food and y are unable to pay for it.

When you are very rich you can play with “the Fundamental Law of the Market“. You can buy a lot of goods, store them and create an artificial shortage. This game is called Speculation. The Multi-Nationals are creating an artificial shortage.

A very advanced Speculation Game is called Hedging.

When you are Hedging you use the Power of Money to Move the market UP to a certain point you want it to reach. If your hedge works out fine you leave the market when it Moves DOWN. At that time you let the “Bigger Fools” pay for the Downfall. At this moment the Tax-Payers are paying for the Downfall of the Speculators in the Housing Business. The Hedge Funds have already found a new Target, Hunger.

At this moment Hedge funds are Moving into the Food-business and they are making Big Money.

Commodity speculation spread long ago from standard products like oil and gold to anything edible and available for trade on the Chicago Futures Exchange. These days there are futures contracts for everything from wheat to oranges to pork bellies.

The futures market is a traditional tool for farmers to sell their harvests ahead of time. In a futures contract, quantities, prices and delivery dates are fixed, sometimes even before crops have been planted. Futures contracts allow farmers and grain wholesalers a measure of protection against adverse weather conditions and excessive price fluctuations. They can also help a farmer plan how much to plant for a given year.

But now speculators are taking advantage of this mechanism. They can buy futures contracts for wheat, for example, at a low price, betting that the price will go up. If the price of the grain rises by the agreed delivery date, they profit.

Some experts now believe these investors have taken over the market, buying futures at unprecedented levels and driving up short-term prices. Since last August, this mechanism has led to a doubling in the price of rice-including the 500,000 tons that the Philippine government plans to buy in early May to address its own shortage.

Experts are already discussing what they call a “Super Cycle,” set off by constantly growing demand in China, and by farmers unable, in the long term, to keep up with that demand as they sow their seed and harvest their crops. The planet has only a finite amount of land for farming.

Greg Warner has worked in the grain wholesaling business for more than two decades. His office sits a block away from the Chicago Futures Exchange. He’s an analyst with the firm AgResource, and he says what is happening now in the wheat market is unprecedented.

“What we normally have is a predictable group of sellers and buyers-mainly farmers and silo operators,” he says. But the landscape has changed since the influx of large index funds. Fund managers seek to maximize their profits using futures contracts, and prices, says Warner, “keep climbing up and up.”

He’s calculated that financial investors now hold the rights to two complete annual harvests of a type of grain traded in Chicago called “soft red winter wheat.”

Wagner is stunned by such developments. He sees them as evidence that capitalism is literally consuming itself.

One of the major players in this business is ABN AMRO. When somebody asked the manager of this business about ethics he answered that he was not interested in a discussion about this subject. “We are aware of the current discussions relating to agricultural commodities but we make the drills, but others have to do the drilling”.

The World Food Program is asking everybody to donate money. They need more money (775 million!) than the “real” Tsunami to solve the problems of the 100 million. The sad thing is that donating is helping the Hungry but is also helping the Rich. It helps them to sustain their Gamble.

In the end your donation will be payd to a very Rich Person who has enough money to buy an enormous amount of Food.

This also happens when Governement is “helping” the WFP. It is a very intelligent trick to move money from the Public Domain to the Private Domain. In the end You pay More and They Increase their Wealth. IT happened with the Credit Crunch. It happened with the Great Depression. It happens all the time.

Just like every Bubble the Food Bubble will also burst at a certain moment. It is not difficult to imagine when this will happen. It will happen when a very small part of the world is able to pay for the food.

The Bubble is already infecting the Economy of the Rich Countries. When a Very amount of people is able to buy Food the End State will be reached and the Prices will drop. At that moment The Hedge Funds will move into another area of (artificial) Shortage.

The poor people in the West are already unable to pay for the food. At a certain moment the Middle Class will feel the effects. When the Poor People in the Rich Countries will experience a Food Shortage they will Riot.

Just like the poor people in the Underdeveloped Countries are Rioting. When the Riots start in the Getto’s of the Big Cities the Rich will become Afraid. They will Ask for Protection of the Police or the Military. In the end they have to surround there homes with walls and create there own food supplies.

The rising prices not only affect the Poor. They also affect the Policy of the FED to stop the Credit Crunch. Higher prices stimulate Inflation and Inflation can only be stopped by an Increase of the Interest Rates. Higher Interest Rates will deepen the state of Depression.

Is this what the Investors really want?

The Ethics are not of My Concern. They are the Business of Somebody Else.

We Produce Weapons but we are not responsible for the Use of the Weapons.

We Fight a War but we are not responsible for the Killing of Innocent people.

We Advice people but we are not responsible for What we are Advicing them.

We Pollute the World but somebody else has to Clean Up.

We Use all the Resources of the Earth but somebody else has to Take Care of our Children.

In the advanced Western Civilization we just look at the Profit. Investors are playing their hedge in the Global Casino and just don’t realize that they are gambling away the daily food supply of the world’s poorest people.

In the old, “Savage”, civilizations the Decision Makers had to Evaluate their Decisions on the effect of Seven Generations. They Knew they needed Nature, their Neighbours and their Offspring to Survive.

Funny.

Every Company has turned itself into a Green Company. They want to “Save the Earth”.

Are the Poor People on this Earth not Included in their Policy?

I know Why. You Know Why. Money makes the World go Round?

My Advice:

Always Take Responsibility for Every Action.

We are all Part of an Ecology and someday the Ecology will React and You will encounter the same things Others are Experiencing.

Do You want to Live in an Environment where You are deprived of Food? I don’t think so. Nobody Wants that.

REFLECT BEFORE YOU ACT.

LINKS

About Ethics in Banking

The House of Morgan or How the Great Depression was Created

Monday, December 10th, 2007
Black Tuesday

Black Tuesday

Black Tuesday, October 29 1929 a giant economic implosion took place.

This implosion was the official start of the Great Depression.

The  implosion took place because Something or Somebody was pushing the economy UP while it wanted to go down. An artificial Up-movement of the Economy is called a Bubble.

J.P. Morgan was highly involved with the introduction of Fascism in Europe and the US.

He believed that the major enemy in the World were the Communists.

He was befriended with Mussolini and Hitler and organized a fascists putsch in the US by his own private army, the American Legion.

The putsch failed. The legion was used as a recruiting base for the rebirth of the Ku Klux Klan.

Morgan organized the US Communist Party to create an internal external enemy. Morgan used many other dirty tricks to accomplish his goals.

The British Empire was the largest empire in human history. At the time of the Great Depression it controlled a quarter of the world’s population (458 million) and total land area.

The ruling class of the Empire came out of old families and was trained in special institutions like Eton and Cambridge.

The British Empire was based on the ideology of “Free trade”. “Free trade” was necessary to expand the markets of the British Factories. The factories needed raw materials, logistics and markets.

When a country or a person blocked the free trade the British Army removed the obstacles.

Free trade was organized in Trading Companies. They created strategic outposts. When the outposts controlled the region the British Management System (Law, Education) was implemented.

The main goal of the System was to keep the natives under control, and to develop them slowly, and along their own lines.

The British Elite was very practical. They were conservative men with relativistic notions about what forms of government suited peoples (or ‘races’) best. They didn’t go in for ideal systems.

They also knew they did not have the numbers of personnel to try to revolutionize her subjects so they always used local collaborators. They practiced the method of “indirect rule”.

The American Friends of the British Elite shared the commercial attitude of their British friends. They opened up new markets and protected their trade.

They even invented a new tool, Financial Manipulation. In every other aspect they were very different. They were highly ideological and therefore not practical.

They were convinced they were the carriers of the Best Ideology on Earth, Capitalism.Their first priority was to Destroy the Evil Empire and the friends of the Evil Empire, the Soviet Union.

In contrary to their British friends they were not interested in indirect rule. When an enemy was destroyed they left the country and were convinced everybody would embrace their System.

The Power of the House of Morgan was lessened by the New Deal of Eleanor Roosevelt in 1933. Roosevelt organized a Social Contract that gave more influencers the possibility to take part in the US Government.

The Financial Power of Morgan never disappeared. His group is still behind many influential financial companies (Morgan Stanley, JPMorgan Chase) and institutions like the World Bank.

JPMorgan is reincarnated in the person of Jamie Dimon (JPMorgan Chase). He is playing the same game as his predecessor and is behind many of the intelligent tricks that are now performed behind the scenes in Washington.

Is History Repeating Itself??

The Economy was bubbling because the Government was “pumping” a huge amount of money into the economy. Therefore it was very easy to lend, to spend and to gamble with money on the stock-exchange.

Many people gambled enormous amounts of money on the Stock-Market but on Black Tuesday they lost their bet. They lost their bet because suddenly nobody believed the Up-state would continue.

Why was the US Government pumping so much money into the Economy?

The strange thing happened that the major money pumping engine (the FRS) was controlled by the Government of the British Empire. The US Government was not involved. It was totally powerlesss.The British Empire needed money to maintain the backing of the British Pound (The Golden Standard) and the “old boys” network in the Financial Business just made a deal.

The Government of the British Empire was controlled by an Elite. Lord Montagu Norman of the Bank of England and Benjamin Strong of the New York Federal Reserve Bank were of the same club. They arranged the Bubble.

Behind the Elite was one Very Important Person, J.P. Morgan. He was the sole owner of a small company called the House of Morgan. The House of Morgan held effective control of the American government for much of the late nineteenth and early twentieth centuries. Morgan used the US central banking system to increase the ability to lend more money than he possessed. US Citizens paid taxes and their money was used to realize the plans of Morgan and his friends.

Morgan helped his friends (including the Bush family(!)) to get rid of their huge debts and to “buy” many important US companies (AT&T, US Steel).

After Black Tuesday the “friends of Morgan” held directorships in 167 industrial concerns, banks, railroads, and utilities. They controlled the most important media in the United States, including the New York Times.
LINKS

Why Conflicts Solve Many Security Problems: About Attacks and Mistakes

Tuesday, November 20th, 2007

One of the most interesting jobs in my career was the management of the Security in a big bank. It was an interesting job but also a very stressful job.

When you are responsible for Security you are always fighting against two forces. The first force is the Outside Attacker. The other force is your Boss.

When “Things Go Terribly Wrong” your Boss will be very angry.

When “Nothing is Happening” he will reduce your budget or he will tell you to stop “boddering people” with all the things you do to “Prevent that Terrible Things will Be Happening”.

People don’t like Security Measures.

One of the most spectaculair activities was “The Simulated Attack“. We paid people to attack our Systems and we hoped we could stop them. I can tell you one thing. They always succeeded! Personnally I am convinced it will be much easier to attack a bank than 10 years ago. I still know “How They Did It” and I know it is almost impossible to prevent “This to Happen”.

If you know a little bit about the way payments are processed the only thing you have to do is to change a software-program. “This” can be done on many levels in the IT-Infrastructure. When you do “this” on a “deep level” you need a lot of technical expertise. You can also do it in a simple way. Just sell yourself as a programmer to a contracter or sub-contracter.

The funny things is that you can also Attack a Bank without the intention to Attack the Bank. Just “Make a Vital Mistake” and Complete Systems Stop Working. Soon I discovered that “Preventing Small Mistakes” was much more important than “Preventing a Big Attack”.

The most important reason is that when somebody wants to Attack a Bank you just cannot stop them without Stopping the Bank.

You need to take so many “Counter-Measures” that everybody (Personel and Customers) is simply stopped in everything they want to do.

One of the people that inspired me the most was Prof.dr. Willem Albert Wagenaar. He showed me that it is almost impossible to prevent mistakes.

When you want to Prevent a Mistake you Have to  Change the System Not the People.

Many Security systems are Symbolic Systems. You are not allowed to exceed a speed-limit when you drive a car. It would be much easier to block the car to exceed the limit.

The only thing you can do is to “design” systems that are resistant to the things “you don’t want to happen”. But Beware of the “Total Blocking Effect”.

A very effective way to do this is to “Create a Conflict”.

When you don’t want somebody to spend money without permission make Two persons responsible for the decision to spend the money. When you want to prevent that your personnel is treated badly make one person responsible for the Care of the personnel and another for the Use of the personnel. When you want High Quality and Speedy Delivery make one person responsible for Quality and the other for Speed.

The most important thing you have to do to make this work is to give them Equal Power. When you don’t do this one of them will become the Slave of the Other. When you give them Equal Power they have to Negociate the Two Conflicting Forces.

A Projectmanager needs a Very Special Expert to reach his goals in time and the Expert is very tired or sick or his father is dying. The  solution is to talk with the Customer and explain the problem to him. Perhaps he wants to postpone the project for a few days.

A bad solution is to waste the Expert (he will make mistakes) or to use an unexperienced employee (he will make mistakes). When they make mistakes the project has to be postponed and the Customer will loose his faith in your competence.

When the Opponents are unable to solve the conflict give a third party (The Wise Judge) the Power to Decide and write down “How He Solved the Conflict”.

This will prevent the next one.

About the End of the EG, the End of the Dutch Political Parties and the Death of Pim Fortuyn

Monday, October 29th, 2007

It all started in 1996. In this year I was asked to become a member of the HP Corporate Advisory Board, the ESPRIT Advisory Board and the W3C-Advisory Board. Suddenly I started to talk with very high level executives about the Future.

ESPRIT is a huge program of the European Union. It invests money in Research all over Europe. Every four years the priorities are formulated and I was asked by the Dutch Government to be the Dutch representative.

The panel was constructed by combining Country and Branch. I was the Netherlands and Banking. Another member came from the UK and was an expert in the Future of Medicine. We were asked to give a presentation about our expertise. Later all the presentations would be merged in next sessions.

It was a big surprise to the managers of ESPRIT that we were telling more or less the same story. Finding a shared view always took many discussions but we finished in one day.

I asked my manager if I could visit my colleagues of the panel to dig deeper in what they were telling. At that time I was responsible for Corporate Search. I had to define the Future Strategy of the Bank. After some explaining he agreed and I traveled Europe.

What we found out was that behind the scene a new shared foundation was visible. Every Industry was moving to a Center and out of the Center completely new Industries would emerge.

In 1996 I wrote the first English document I ever produced. It was about the Future of Banking. A few citations:

“By definition, the bank has always been a facilitator of trading processes”. It means that the bank must try to penetrate more deeply into the sales and production processes of the suppliers”, “the role of the intermediary will have to be investigated, and the positioning of the bank at the user-interface of the client (in the first instance, private client) defined. What is more, it is recommended that we do not sell only our own products. In the private client market, the struggle will revolve around the user-interface and ‘convenience’. Customers must be captured, seduced and retained. The ‘convenience’ is created when the ‘network organization’ (bank + retailer + producer, if there is one) finds ways of relieving the customer of certain troublesome matters“.

The document was discussed on many levels in the Company. To my big surprise the majority of the senior managers found the document interesting but in essence they did not believe “this” would ever happen. Banking would stay the same “for Ever”. It was a nice Vision but it was not based on Reality. I produced many other Presentations and Documents to show what was happening. I even build a Demonstrator together with Scientists of the Erasmus University (Eurides, Ron Lee & Yao Tan). It used Deontic Logic. The Demonstrator was financed by the EG ESPRIT Fund.

A year later I left the bank. My first job was to create a lobby office of ABN AMRO in Brussels. My ESPRIT-contacts proved to be of great help.

The new emerging foundation came back in many activities between 1997 and today. In March 2006 I finally saw the Light. To share my insight I wrote a document called “The Moving Boundary” (Dutch, De bewegende grens). Suddenly I saw that we were not only moving to a new foundation but that the foundation, the Center, was “On The Move itself”. I used a new Prediction of the Dutch Cultural Planning Bureau (SCP) to prove my point.

The SCP showed that five (!) factors were the main drivers. They called the drivers Individualization, Intensivation, Globalization, Automation and Informal-isation. I mapped the five factors on the Model of Will McWhinney and hoped one of the five factors would disappear. At that time I believed in four World Views.

Suddenly I saw that the factor Informal-sation was related to a Center. This center is pushed by four forces Equality, Diversity, Uniqueness and Cooperation. They are trying to find Balance. Until that time the Centre is moving in many directions. Every time we think we have found something to “Hold On” it moves.

I found out that we are moving from the time of the OR to the time of the AND. Before the Center started to move we had a Choice.

We could be in favor of Equality (Conservative, Christian Democrats), Uniqueness (Liberal) or Cooperation/Solidarity (Socialist) but the old boundaries are disappearing.

The Old Parties are holding hands in the Political Democratic Centre of The Hague but also Centralized Democracy is not a concept that is there to stay.

The AND-process in politics showed itself for the first time in 2002. A completely new party led by Pim Fortuyn took over Dutch Politics like an Earthquake. Unfortunately Pim Fortuin was killed just before the Elections. Many people believe it was a Political Crime.

The Netherlands are still in a very incomprehensible process of political restructuring. New parties grow and die. Old parties are splitting and restructuring.

The central structure of the EG is falling. Many “old time” politicians are playing strange games to show that people of Europe like what is happening in Brussels. They all know they are unable to hold the European Center.

The same is happening with NATO and the UN.

The Center is Moving!

Much later I discovered the Final Secret.

The Center is now moving at random but is trying to Jump to a new Level.

The Jump can be a Fall or a Rise.

About the Legal System

Saturday, August 4th, 2007

A friend of mine is a well known lawyer. He is writing a book about improving the Legal System. He is thinking out of the box.

His main issue is efficiency. We can save much money and of course save a lot of trouble of innocent victims of the System when we use sound principles of management. I agree with everything he is writing.

I don’t want to think out of the box I want to remove the box itself. Let’s have a try.

Why do we need a law and people that are enforcing the law?

Was there a time in history when Law was not needed?  Law was not needed in Paradise.

What Went Wrong?

The Church is trying to convince us that we were forced to leave Paradise because of Sin. Eve ate an Apple. The Apple was given to her by the Snake and the Snake was Evil. Sin is the cause of the Legal System.

We have to detect and punish all the sinners who are not obeying the Law. When they have confessed their sins in Court they have to pay the price in terms of money and/or years in prison. After that time they can start all over again.

The concept of Sin was invented to give the Power to Judge to the Church of Rome. The Church of Rome was the successor of the Roman Empire. They were the experts in managing the masses (Divide and Conquer, Bread and Games). They were also the inventors of our Law System.

My friend uses many Latin insights like “De minimis non curat Praetor (dont go to court for something small)” to support his arguments. Later the Institutions of the State took over the Power to Judge.

The Church of Rome not only explained why we had to leave Paradise. It also invented a new concept called Heaven. Heaven is Paradise but now we have to obey the law to get there.

Paradise was given to us. To go to Heaven we have to obey. They not only invented Heaven but also Hell (The Jail) and a manager of the eternal Jail called the Devil.

The snake is really the symbol of Consciousness, the power which knows itself. When the human left Paradise he became aware and was given the opportunity to become a co-creator. He became a part of the Whole that is called All-That-Is (Yahweh). He was also given a Free Will because a dependent co-creator is not a creator.

What went wrong?

We were not able to co-create a balanced Earth and time after time All-That-Is was asked to interfere and to create a Law like the Ten Commandments. The first command was “Don’t Kill“. Humans thanked Yahweh for the Law and just went on killing.

What went wrong?

We always find new laws (exceptions) that are more important than the first commandment. We invent them. We are allowed to kill when somebody has killed another person or we are allowed to kill when somebody is trying to kill another or…. I can go on and on giving you very intelligent arguments why killing a human is allowed in a certain situation.

This process of inventing exceptions is called jurisprudence and it creates a very complex system of laws. To judge a situation we need highly educated experts (Lawyer) and highly educated “objective” persons (Judges) to value the law and its exceptions to pass a verdict. By creating experts we created a shortage. The experts in law are not trained to become a doctor or an artist.

In society we don’t discuss this shortage. We hope that the System (now called a Market) will regulate itself. When it is regulating itself we create Laws to stop the process of Self-Organization (also called Consciousness).

The doctors are afraid there will be too many doctors so their price (income) will go down. They organize pressure groups that are influencing law makers and often somebody introduces an exception. This exception increases the Complexity of the System.

What went wrong?

When you need an expert you need money and some people are poor. So we invented a system where there are two types of victims the rich and the poor. The rich are able to win a legal process more easily than a poor person.

Again we created a shortage. The shortage is wealth and we invented a tool to “objectify” wealth called money. Poor people are in need of money and rich people have an abundance of money. We created a system called a Bank to regulate the flow of money. We created systems to regulate Banks. Regulating regulators never stops.

What went wrong?

The rich people have influence by themselves. We try to prevent this but behind the scene people with influence are making deals with the Law. We all know that.

We create Laws to prevent this but as you all know now people don’t like to obey rules. This opportunity was given them when they left Paradise. It was called Free Will. We are constantly trying to control Free Will (Our co-creating Creativity).

What went wrong?

At some point in time the masses became too powerful. They were on the verge of a take-over. To stop this democracy was invented. This went wrong when the masses started to vote for themselves. To prevent them doing this the consumer market was invented. The masses (now called citizens) could vote with their money.

Now the consumers (the masses) are taking over the Power again and the consumer market is destroying Earth (our Paradise).

We are inventing new concepts like Media and Games (Bread and Games) to silence them.

We also create new ways to “divide and conquer” called Sound Management Principles and Compliance but will it help us?

What went wrong?

The main point I am trying to show you that things always go wrong. We are compensating a fatal error with a fatal error.

This is a meta-problem and I can go on phrasing meta-meta-meta questions and in the end things are always are going wrong. Is there something totally wrong behind all this?

We started with the gift of consciousness, the power which knows itself. This power gave us a Free Will and Free Will is Co-Creativity. The Co is very important Co means Co-Operation.

Are we really using the Power to Know Ourselves? If we would know ourselves we would know what was Right and what was Wrong. We would act out of Knowing instead of out of our Impulses. We would not need an outside Law. We would be carrying the Law in Our Selves.

Why are we not using our Consciousness?

People use their Consciousness all the time. It is a voice that is talking in their heads asking them Why?

Why is starting the process of Reflection. To reflect we need a Mirror and the Mirror is the Other. If you were the other, would you like to be treated like You are treating the Other?

What people do most of the time is the opposite of Reflexion called Projection. Projection is telling others not to do what You are doing all the time.

You are a Priest working in the Army. You tell others that they are not allowed to kill but when there is a war you pray to God for help to win the war.

Projection is the cause of all the trouble we are in. Projection is Judging others without starting to Judge yourself.

Ask yourself the question. Is it wrong to ask for food when you are hungry? The Law in the Bible tells you to give shelter, food and care to the poor and the sick.

Why are we not doing this?

We are doing this because when we give money our account is going down and perhaps we need the money later when we are in trouble. But when everybody is helping everybody we don’t need to save money.

We don’t believe others will do this and therefore we are not doing it our selves. This is projection. We are projecting our behavior on others.

Is it wrong to ask for a shelter when you are poor? Again “giving something” causes problems because when we give we are also have to take.W

We think Life is a zero-sum-game.  We are imagining a shortage. Shortage is a fantasy, an Illusion created by our Thinking Process.

Our Thinking is projecting(!) troubles into the future and acts in the Now like they are real. It wants to control something that is still not there.

We have created the Illusion of State, Law, Money, Inflation, Interest, Budget, Time and many other Illusions of Control. They are bothering us now in everything we want to do.

Life is really a non-zero-sum-game when we share and collaborate. The solutions for the big problems in the world are known. We don’t apply them. We are projecting, projecting and projecting. Let’s stop this Evil Game.

Let us start to observe our selves.

Let us use our imagination and create new possibilities.

We don’t have to move far away. Let us start in our own environment, our family, our friends, our colleagues, our neighbors. If everybody is doing this we will solve many problems.

In the end we will still need a Law and a Judge but the amount of Laws, Jurisprudence and Lawsuits will dramatically go down. The System will be very simple and  a lot cheaper. It will cure and clean itself.

LINKS

About Lady Justice

About Ethics