More on BP´s Russian deal

Kim Zigfeld, writing in the American Thinker, thinks that BP has made the wrong move in Russia:

Oil major BP has announced another foray into the Russian market despite being burned many times in the past by Russia's fundamental corruption.  It should reconsider. Both the empirical facts and basic morality dictate disengagement from the Russian market.

A look at Russia's most recent national report card ought to be more than enough proof for any investor that Russia is no-man's land.

From the Heritage Foundation emerges Russia's score in economic freedom: an F.  Russia is ranked #143 out of 183 countries reviewed, roughly the bottom quartile of the planet.  The instructor opines that the student (Russia's judicial system) is "unpredictable, corrupt and unable to handle technically sophisticated cases."  Did somebody say "dunce cap"?

After pointing out the sorry state of affairs in Russia, Zigfeld notes the sad truth:

Sadder still, though, is the craven reaction of the Western democracies. Despite pleas to act, they have ignored for instance the brutal persecution of former first deputy prime minister Boris Nemtsov and Russia's Bill Gates, Mikhail Khodorkovsky, for no other reason than their public criticism of the Kremlin.


Read the entire article here.

Corruption in Greece: The "4-4-2 system"

Forbes magazine recently published an article about widespread corruption within some EU countries. The Greek "4-4-2 system" is just one telling example:

A senior Greek government official once said that the problem with the country is its "4-4-2 system:" an individual or company that owes 10,000 euros in taxes, pays 4,000 to the inspector, keeps 4,000, and pays 2,000 to the state. It is no surprise that in Greece during 2009 only 2,000 citizens declared incomes more than 250,000 euros, and only 15,000 more than 100,000 euros. This coming from a population of 11 million!.

PS
The "4-4-2" system shows that the present-day Greeks have not forgotten their revered ancient forebears, who were famous for introducing a clear system of rules that made their society function efficiently.

(image by antiqueprints.com)

Krugman thinks China on its way to economic crisis

To my great surprise, I have again started reading Paul Krugman´s columns in the New York Times. First he surprised me by a good critical assessment on the eurozone a few days ago; now he joins the ranks of those who think that China is heading for an economic crisis:

Could all of this really turn into a full-fledged crisis? If I didn’t know my economic history, I’d find the idea implausible. After all, the solution to China’s monetary muddle is both simple and obvious: just let the currency rise, already.
But I do know my economic history, which means that I know how often governments refuse, sometimes for many years, to do the obviously right thing — and especially when currency values are concerned. Usually they try to keep their currencies artificially strong rather than artificially weak; but it can be a big mess either way.
So our newest economic superpower may indeed be on its way to some kind of economic crisis, with collateral damage to the world as a whole. Did we need this?

Read the entire column here.

"BP´s laundering job" in Russia

 BP´s new deal with Russian Rosneft shows that the British company does not adhere to any kind of moral principles. BP is according to the former chief financial officer of Yukos participating in a form of money laundering of Rosneft’s stolen assets. Two years ago it was a different story:

Photographs of BP’s new CEO, Robert Dudley, smiling next to Putin and Sechin at Putin’s Novo-Ogaryovo residence Friday were shown in newspapers all over the world. But just two years ago, in 2008, BP’s Moscow offices were being raided by gun-wielding police in what was thought to be an attempt to make BP discard its Russian joint venture. Then, Dudley wasn’t smiling. He was forced to flee the country after being questioned by police over alleged tax fraud. It appears that Dudley has a very short memory.
Since the deal was announced, BP and Rosneft have both emphasized that it gives them the unique opportunity to jointly explore for offshore oil and gas, particularly in the Arctic, that was previously reserved for Russian oil companies only. Dudley said it sends a “strong signal about the possibilities of investment cooperation in Russia.”
Meanwhile, BP Russia’s president Jeremy Huck said on Ekho Moskvy: “The projects we’re planning with Rosneft are sanctioned by the Russian government. The question about where those assets are from, that’s better asked of Rosneft or the government.” That’s called burying one’s corporate head and corporate ethics in the sand.
Some say Rosneft’s actions are likely to scare off Western investors, depriving Russia of Western investment capital that it desperately needs. Shareholders and investors have no guarantee of the security of Rosneft’s ethics and ownership. Yukos has more than 55,000 shareholders, more than 50,000 of whom are Russian. They are still waiting for answers.
The truth has not changed one iota after BP’s investment in Rosneft. BP is calling its own business ethics into question. How will the international finance community now start treating BP once it has become clear that BP is participating in a form of money laundering of Rosneft’s stolen assets? Many BP shareholders have already answered this question, showing their understandble concern about Rosneft’s reputation and the fact that BP sold itself out in terms of the company’s reputation and its stated commitment to  corporate governance and transparency.

Read the entire article in the Moscow Times here.

One of every five cellphones sold in the world are illegal copies

(China copy of Nokia E 71)

Nokia´s executive board member Esko Aho (former Finnish PM) sends a message to China (and a number of other countries):

HELSINKI (Reuters) - One out of every five cellphones sold in the world are illegal or unlicensed copycats, hurting the position of producers like Nokia in emerging markets, the world top manufacturer by volume said on Friday.
"It is mostly China-originated, but it is global. It is not only in Asia, but also in Latin America and even in some parts of Europe," said Esko Aho, a member of Nokia's executive board.

PS
Cellphones is only one line of íllegal copies where China excels, there are many more. I presume that this was one of the problems that president Obama brought up when he met with his Chinese counterpart Hu Jintao, but he and other western leaders should be much more firm in their demands that China finally takes some real action against its criminal copycat manufacturers.

China expert Stewen W. Mosher: Hu Jintao´s visit cause for concern

China expert Steven W. Mosher thinks that Chinese president Hu Jintao's official visit to Washington is cause for concern, not celebration:

Mosher, who was the first American social scientist allowed into China in 1979, points to China's abominable human rights record, repressive government regime and unfair economic policies as reasons for outrage at the current state visit.

"As Hu Jintao is feted by President Obama, China continues to persecute Christians, lock up dissidents, and brutally enforce the one-child policy," says Mosher. "I was recently in China, gathering evidence of human rights abuses in China's infamous population control program."

Read the entire piece here.

EU Carbon crooks

The eminent Dr. Richard North at the EU Referendum blog comments on another major EU scandal:

Earlier reports on the EU carbon trading suspension were talking about €7 million-worth of permits going missing.Then reports started telling us that the actual figure was €28 million – but that was only what had come out of the woodwork. Now the Estonain Free Press is talking about €40 million.

Despite the intangible nature, of the permits – they are all, selling permission to emit carbon dioxide – this is real money, which is going to come out of our pockets one way or another. Needless to say, the EU is stepping up the damage limitation attempts with Jos Delbeke, director general for climate action at the EU commission, claiming that the number of missing permits is equivalent to 0.02 percent of total allowances in the market.

A lot, lot more than that have gone missing though. This is only the tip of the iceberg. Most readers will recall that in 2009, the Emission Trading System (ETS) had been the victim of fraudulent traders in the past 18 months. This resulted in losses of approximately €5 billion from several national tax revenues. It is estimated that in some countries, up to 90 percent of the whole market volume was caused by fraudulent activities.

Read the entire article here.