The shake of the dice

A RECENT series of BBC documentaries on poverty has really been shedding light on the unfairness of the world economy and the privileges those with money continue to enjoy.

Capitalism today, more than ever, really is a case of the rich getting richer and the poor getting poorer. And it’s all down to the lottery of where you are born.

In general, those born into wealthy families have ample opportunity and resources and sail through life confronting little or no obstacles along the way, while those born into poor and struggling families are given few hand ups in life and continue to live in poverty, just like their parents and grandparents.

Using a simple Monopoly board researchers have clearly shown just how unjust finance can be. The researchers challenged two players to a game. One ‘rich’ player was given a heap of money to start the game and he was allowed to collect $200 (€150) every time he passed go.

The other ‘poor’ player was given very little money to start and could only collect $20 (€15) every time he passed go. Needless to say the ‘rich’ player whipped around the board, buying up property and collecting money. What was also interesting, was the sense of entitlement the rich player showed. The poor player however, struggled to buy or to save money and ultimately lost the game.

Everyday around the world people are out on the streets protesting against cuts and austerity measures, but unless the root of the problem is addressed – which is the relationship between money and politics – nothing will change.

Rich people continue to reap benefits, because politicians continue to accommodate rules and regulations in their favour. So much so, that when a lobby group for the super rich in the US recently put forward a proposal to dramatically cut public spending, the Catholic Church felt it had to intervene. It asked politicians making decisions to be humane and think about the poor.

The superrich, a lot of whom are CEO’s of big banks or big industry, have very little concern for the well being of the ordinary citizen, but each ordinary person had to bail them out when the economy crashed.

Isn’t it time to change the rules and spread the wealth?

Consumers being charged more for their electricity.

TWO Spanish owned electricity companies have been nationalised by the Bolivian government.

The Iberdrola subsidiaries were accused by Bolivian President Evo Morales of overcharging consumers in rural communities.

He said people in the countryside were paying up to three times as much for their power as consumers in urban areas.

“We were forced to take this measure,” he said, calling the electricity charges “unfair and unequal”.

Iberdrola, which will find out in 180 days how much compensation it will get after independent arbitration, owned 89.5% of Electropaz, which operates in Bolivia’s largest city, La Paz, and 92.8% of Elfeo, based in the Oruro region.

Dense fogs had long been London’s particular badge of infamy, but the ‘Great’ version was literally, a killer.  Figures vary, depending upon the source, but all agree that the directly attributable deaths were numbered in thousands.

It lasted throughout the weekend, bringing traffic to a standstill as buses were stuck in their depots and the drivers of London’s black cabs stayed home.  I’m not exaggerating when I tell you that it was impossible to see past one’s knees.  It was like wading through a dense, yellow-brown, foul-tasting vapour-bath that stung one’s eyes and throat.

My mother had only that week hung new curtains in the living-room, the sash window of which was stuck with a three-inch gap at the top, and a memory that has remained in my mind is of her, when the smog finally cleared, taking down those new curtains, now with a dirty black stain along the tops, to wash them.  But they fell to pieces in her hands, rotted away by the chemicals we’d all been forced to breath.

London’s dense fogs had for a century or more been a cause for concern, but it took thousands of deaths to force politicians’ hands, resulting, in 1956, with the passing of the Clean Air Act.

Recognising that the killer smog was caused by smoke from millions of domestic coal fires being trapped beneath a thermal inversion, soft coal was prohibited and lo! this did the trick.

Smog has never returned, and to the eye, London’s air is pure and clean. Unfortunately this isn’t quite the case. The dense particles of the Great Smog have been replaced by invisible, but just as deadly, nitrogen dioxide, emitted by the countless motor vehicles now clogging the capital’s thoroughfares.

It has been said that, if one wishes to breathe truly clean air, it can be found in the frozen wastes of the Arctic and Antarctic, or in the depths of the dense Amazon jungle.

Would that this were true today, but in these modern times, with the Earth’s population increasing exponentially, latest figures show this to be only a dream. The arctic permafrost is being destroyed by oil companies searching for ancient deposits of petroleum whilst at the same time uncovering huge areas of long-buried and frozen vegetation. As it defrosts, it decays and releases massive quantities of methane, a greenhouse gas far worse than CO2.

Undersea exploration is also taking place in the Antarctic, destroying fish stocks and the natural habitat of penguins and other birds, whilst Argentina again beats its war-drums.

We are not the owners of this planet, merely its custodians.  We have no right to exploit its resources as we do.  It’s dangerous and makes no sense.  But who’s to stop it?

FRUIT AND VEG: Mercadona says it spends €15 billon a year on Spanish produce.

SPANISH supermarket chain Mercadona has come forward to dispel rumours that it was selling produce marked as Spanish but which had been sourced abroad.

The group Boicotmercadona published an extensive report claiming that Mercadona imported oranges from Argentina all year, but claimed they were from Valencia.

It also complained that Mercadona’s Hacendado brand olive oil is of poor quality and comes from Portugal, the same, it claimed, as their milk.

Mercadona published a press release denying each of the accusations. The company says it only imports oranges from the end of July to November, and pointed out that it bought 110 million kilos of Spanish oranges in 2011. It also claimed that the milk is sourced from 1,400 national farms.

Against accusations that it doesn’t spend enough money in Spain, Mercadona said that in 2011 it spent €15 billion on Spanish produce, making it the company which spent the most.

The company, owned by Juan Roig, has become Spain’s most profitable retailer, beating El Corte Ingles this year.

REAL THING: Would you pay towards cost of marrying cutout figure?

HAVE you ever wondered where your money goes?  Well for some girls in the US, part of their savings has gone on helping to raise money for a woman to marry a cardboard cutout of Twilight movie star Robert Pattinson.

The lucky bride-to-be of a cardboard Pattinson raised over $1000 (€756) from the public.  The money will be spent on the ceremony, dress, invitations, a cake and all the other frills needed for the wedding on January 23, 2013 in Las Vegas.

Those who donated more than $35 (€26.50) to the bride and groom will even receive a custom-made postcard from their honeymoon.

Sounds crazy?  That’s because it is.  But it does highlight just how stupid we can be with our money.

On a slightly less insane basis, let’s talk about other unnecessary things we spend money on.

My guilt lies with lip balm. I am addicted.  From lip balms to lip-gloss, lipstick, lip shine, lip matt, lip repair or lip rescue.  I have bundles of these little containers or tubes lurching around the bottom of my handbags.  I buy them, love them, use them a few times and then move onto the next on the market.

A senseless waste of money I know.  So I have decided to reform my ways. Pick one and stick to it.

Another crazy waste of cash is a gossip magazine.  They may only cost €1.50 and it takes all of two minutes to flick through them, but the consequences of reading these glossy pages can be fatal for our finances, not to mention our intellect.

We see a snap of Sara Carbonero in new ankle boots or an expensive top, and even though we don’t earn her salary we suddenly need these items.

Better for our wallets and for the sake of forests to leave these magazines on the shelf.

FASHION STAKES: Spanish retailers expanding

SPANISH fashion group Inditex has taken €1.65 billion between February and October of 2012.

This is 27 per cent more than for the same period in 2011, and is mainly thanks to improved sales in the Asian market.

When asked about the secret of their success, a company spokesperson said: “We can’t see any special reason for this growth, just that we have seen many opportunities in different markets and jumped at them”.

In the first nine months of the tax year, the company created almost 6,600 jobs and now employs more than 116,100 people. Between February and October, it has opened 360 shops in 54 countries, bringing the total to 6,000 with more openings in the later months, including one shop in Oxford Street, London.

The spokesperson pointed out that the Autumn-Winter period is always improved by spending at Christmas and in the winter sales.

Zara launched an online shop in China in September and plans to do the same in Canada this year, which it hopes will continue to improve sales.

Meanwhile, Massimo Dutti, has opened in the United States and Canada; Zara has increased its presence in Munich and opened in Cape Town, Tokyo and Moscow; Bershka is now in Frankfurt, and Uterque is in Hong Kong, Beijing and Mexico.

Stradivarius has also opened its first shop in Mexico, Pull and Bear has arrived with a new type of shop in Vienna, and Oysho has its first shop in Macao.

Rich List

SPAIN’S rich are now 8.4 per cent richer than a year ago.

The 200 richest people in Spain have €145 billion between them according to El Mundo special feature ‘Spain’s Greatest Fortunes’.

In just 12 months, the stock exchange assets of Inditex owner Amancio Ortega, 76, have increased by 64 per cent.  This, plus the real estate he owns, brings his fortune to €43 billion, which equals the assets of the other 99 on the stock exchange list put together.

His company Zara is so successful that his ex-wife, Rosalia Mera, who owns just under seven per cent of it, is the second richest person in Spain.

Meanwhile, the founder of Mercadona, Juan Roig, is top of the list of 100 fortunes not on the stock exchange, with €6 billion, thanks to his 78.37 per cent share of the supermarket chain.  Roig says that Spain has a lot to learn from the effort made by Chinese bazaar owners and says that the Spanish have to either improve productivity or lower their quality of life.

In March, Forbes Magazine published the list of the world’s richest people, with 14 Spaniards on it who were worth more than €750 million.  However, the El Mundo special reveals there are 42 families in Spain with more assets.

The list only includes the net value of companies based in Spain which are present on the stock exchange, but not what the country’s richest own at a personal level.

TOO EXPENSIVE: Locally made wooden toys to die for

IN our house over the last month we have set ourselves a challenge to try and buy Spanish, or European, if possible.  Boy has it been hard.

First off we needed to buy a fan heater for the bathroom.  Every model in our price range came from China.  And in the end we couldn’t stand shivering in the shower any longer and settled on a Chinese heater.

Next was a form of heating for the sitting room.  We wanted a gas heater and once again nearly every one was made in the PRC.  Only by chance on the way to the cashier did we spot a heater made in Italy.  It was a little more expensive, but the delight of finding something made in Europe was enough to make us buy it.

Next were Christmas presents.  My husband needed a leather messenger bag for his iPad and bits and bobs because he cycles.  Lots of nice and reasonably priced bags are available online, but what about in Spain?  Not a chance.

Numerous shops I entered could supply a bag, but at triple the cost of those online.

Also, while the leather was nice, for some reason the bags couldn’t be made with the same secure zip-up inside pockets and quality lining.  Not wanting to make it any easier for pickpockets, I was forced to buy online, rather than local.

Then came the task of buying Christmas toys for all the kids in the family.  The biggest problem is that anything made locally is much more expensive than what’s available online.

A lovely toyshop near us sells beautiful old-fashioned toys including quality picnic baskets for little girls and beautiful handmade wooden toys.  They are to die for, but so are the prices.  And while I would love to support this shop, I just can’t afford to.

So once again, the toys came from Amazon and after opening all the packages, guess what?  Made in China!

The High Command heading towards Britain.

ONE can imagine the High Command of the EU huddled down as it meets in secret conclave to decide what’s to be done about that turbulent and troublesome United Kingdom.

Red lights are flashing, ticker-tapes rattle and messengers scamper to and fro, while a haze of smoke from cigarettes and fat cigars hovers above the table.

Possibly that’s only a product of my fevered mind, but it does seem rather as though the EU is flapping its collective hands and running

around in small circles at the very idea that the UK might one day decide to wave goodbye.

On December 18, 2012, David Cameron moved away slightly from his habitual stance that: “Britain must remain in the EU, fighting its corner from within,” to admit that an exit is now a possibility.

“All futures are imaginable,” he said in answer to a question from his MPs.  “We are in charge of our own destiny; we can make our own choices,” adding, “but Britain’s departure is not my preference.”

The problem with which he is forced to wrestle is that his coalition partners, the Liberal Democrats, are for the most part staunch Europhiles, determined not only that Britain should remain as a member of the EU, but that at some future date, will embrace the Euro.  That is despite recent independent polls that show a clear majority of Britons would like to see the UK leave the EU forthwith.

Prior to all this, and perhaps tiring of Cameron’s insistence that he would “fight for a better deal for Britain,” seeking to claw back certain powers previously handed to Europe, the French president François Hollande said: “Britain cannot repatriate

powers from Brussels.”   Even earlier, on December 8, Herman Van Rompuy, the President of the European Council, insisted the Britain could not “cherry-pick” which laws from Brussels it wished to follow.

What’s really scaring the EU Barons is that any successful repatriation of powers might pave the way for a British exit, thus encouraging other countries to examine similar deals.

Mr Van Rompuy has warned that “countries must not seek to undermine the EU, since such actions could cause the entire European project to fall apart.”  That may of course be political rhetoric to frighten possible back-sliders into standing straight to salute the blue EU banner.

Following all this, on December 24, Germany strode into the fray, with Wolfgang Schauble, that country’s finance minister, stating that Germany will not allow itself to be “blackmailed” by the threat of a possible British exit.

Further, he urged (demanded?) that Britain should not hold a referendum on EU membership, since that would create “uncertainty.”  It’s come to something when the finance minister of a foreign power feels he has the right – not to dictate perhaps, but certainly to influence – British foreign policy!

Perhaps the holidays, intervening so fortuitously, will have provided the EU Barons with the sorely-needed opportunity to “just calm down”.

EXPENSIVE: Weddings mean the cash till rings too..

WHEN it comes to a wedding I really want to say ‘I do’ but sometimes I just can’t.

I mean I want to get dressed up in a beautiful dress.  I want to walk up the aisle and take my place. I want to enjoy the party with all my friends, but the thing is – with finances as they are at the moment – I just can’t afford to be a guest at so many weddings.

This year, my brother is getting married in Ireland.  A friend is getting married in Spain, while two other very, very, very good friends are getting wed in Dubai.

It’s become a bit of a financial conundrum.  My brother’s wedding is a must and while we’d hate to miss out on any of the other three, financially it might not be possible to attend.

A new mortgage, bills, living expenses and our average Spanish salaries mean that we live comfortably by our means each month, but there is never much left for extravagant expenses.

A wedding in Spain could be less harsh on our wallets, but it still racks up quite a bill, considering stag and hen parties, a wedding gift, clothes, travel, accommodation and drinks.

Meanwhile the overseas weddings in Dubai are filling us with dread – financially speaking – and despair at the fact that we might be able to attend. Two return flights to Dubai cost an average of €1,200 and then there’s all the extras like accommodation and gifts.

Getting married is definitely an expensive affair, even when you are only a guest.  In fact, research from the UK recently revealed that 6 per cent of us resent the amount we have to spend to attend and a further 13 per cent refuse to go to some weddings because they cost too much.

The study also calculated that 1.6 million people have actually gone into debt in order to attend a wedding.  Such debt can be very hard on first-time homebuyers, like us, or those still burdened by student debt.

So, while we want to please everyone and support our friends, sometimes we might just have to watch the wedding video!