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Money matters:
Graham Macdonald MBMG International Ltd.
How safe is your money?
According to the lyric, “Sorry seems to be the hardest word”.
When Bernie Taupin wrote that, he probably had not encountered all the leaders
of the global banking fraternity who now seem to have been having embarrassing
public contests as to who could appear the most contrite which, although stomach
wrenching, is a lot less costly than their equally public competitions to
destroy shareholder value:
The winner is … well it’s hard to say who because, frankly,
it might not yet even be half-time in this ugly and destructive game. Whether or
not they have said sorry, it is difficult to trust any bank with your life
savings at the rate that big and small banks are disappearing. The above does
not take into account such monumental banking failures as Northern Rock, Lehman
Brothers, Bear Stearns or HBoS.
‘Sorry’ may be the hardest word for some people but actually it may be that
trust is the most important. This is a 5 letter word just like sorry and one
that also has several shades of meaning. The original form of ‘trust’ was
seemingly enacted by a mediaeval knight, heading for death, glory or a
combination of both in The Crusades. The ‘Trust’ placed the safe-keeping of all
that was most valuable to him to his most loyal friend. Apocryphally, this may
have included the keys to his lady’s chastity belt giving rise to spurious tales
of what the best friend and Lady may have conspired to do while the Knight was
away. Apocryphal or not, that does raise the question, “Just who can you trust?”
And that question is every bit as relevant in today’s financial markets as it
was a thousand years ago on horseback.
What kind of person should manage your money? An ideal profile might take into
account the following issues:
* Experience - An elderly ‘eminence grise’ would perhaps make
any of us feel more secure than a ‘young buck’! Experience, reliability and
dependability tend to be equated with age.
* Character - Someone whose personality is both warm and yet calm and thoroughly
professional would usually give the right impression.
* Qualifications - You might see someone who satisfied the most stringent
professional qualifications and reached highest levels of public office and
ideally could also point to a long, distinguished record of achievement and
awards.
* Background - It is human nature that we all feel more comfortable with someone
who seems to share our beliefs and values, especially religious or political. An
ideal figure of trust might be a paragon of the same church or religion as
yourself and who is also much admired for charitable work and donations
So a mature, experienced, successful, well regulated, highly respected, pillar
of society, feted by the religious community, with impeccable credentials and a
widely recognised record of achievement.
Congratulations! You just selected Bernie Madoff to manage your investment
account!
While that might sound facetious, it highlights how difficult the selection
process can be for investors when deciding who to trust or not. Investors may
have applied many of the most suitable due diligence processes and still ended
up making a bad call. This pretty well explains the anger of investors at the
alleged fraud perpetrated by Madoff and the seeming dereliction of duty by
regulators.
How could that still go wrong after asking so many of the right questions?
Unfortunately, it neglected the key question, and one that too few investors
might think of asking: “Whose hands are on my money and what can be done to stop
them cheating me?”
If Madoff investors had asked that then they might have realized the level of
trust they were placing in the respectable friendly, grey-haired pillar of
society. And they may have thought twice about it. Brokerage houses, as an
investment platform, can find themselves compromised because of conflict of
interest; the same people who manage your funds also hold your funds and report
on your funds.
When the offshore investment industry was established jurisdictions, such as
Guernsey, realized the need to provide higher standards of investment security
than the likes of Wall Street if they were going to be able to complete. If you
are a newcomer to an established market you have to be better, sometimes much
better, than the established players or else clients will not decide to use you.
Typical structures in such jurisdictions generally separate handling the funds
by interposing a custodian whose sole responsibility is to keep the funds
separate and secure. As well as a platform custodian, Guernsey regulated
investment funds also require their own custodian as well to keep individual
fund managers at arm’s length from the funds they manage. The manager can only
instruct an administrator to buy or sell acceptable assets; the administrator,
in turn, instructs the custodian. The custodian details all documentation, every
step of the way, and this is audited or verified frequently (usually daily or
weekly depending on the dealing frequency of the fund) by the administrator.
Each party has a key note to play in ensuring that every other party can only
‘keep honest!’
You should ‘Never say Never’, but this kind of structure would prevent any
conceivable kind of fraud or abuse. Also, it is underwritten by professional
indemnity insurances in case it does go wrong AND, because of the use of
custodial trusts, the ownership of the investment remains at all times with the
investor. If any link in the chain fails, the money is still there.
An adviser, a platform provider an administrator and a fund manger can never
touch the funds. They are simply not in a position to do so. If they were to go
out of business, the ownership of the assets remains with the investor and is
ring-fenced.
The custodians and the administrator co-operate to hold the assets in a separate
trust for each investor and they cross check and verify these constantly. There
is no conceivable scope for fraud AND the ownership of the asset remains with
the investor at all times.
You should still choose an advisor, a platform, a custodian, an administrator
and a fund manager that you can trust but you should also be secure in the
knowledge that the structure and process remove any element of risk and
temptation. What is more, indemnity protection means that the assets are
additionally insured against loss of this kind.
You could say that an insurance on top of a protective trust on top of a secure
platform on top of another protective trust is overkill but it is much better to
be safe than sorry!
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The above data and research was compiled from sources
believed to be reliable. However, neither MBMG International Ltd nor its
officers can accept any liability for any errors or omissions in the above
article nor bear any responsibility for any losses achieved as a result of any
actions taken or not taken as a consequence of reading the above article. For
more information please contact Graham Macdonald on
[email protected]@mbmg-international.com.comm.com.com
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Snap Shots: by Harry Flashman
A project in progress
Pattaya Bay 1991
We live in an ever-changing world. Some people may say it is progress as
old buildings are knocked down to make way for an expressway, while
others may not agree. However, no matter which way your opinion slants,
you do not have to wear a colored shirt, and the subject makes for a
great photo project.
The great thing about this project is that not only does it make you
‘work’ to produce a particular image, but the final images are eminently
marketable. Interested? You could even make money out of this!
All you have to do with this project is to show the progress that has
occurred in any area - particularly the region that you live in - for
example, Bangkok, Chiang Mai or Pattaya! The concept is simple -
contrast a “now” shot with what was there before. Sounds too easy? Well,
it is not quite that easy! There are a couple of snags.
Probably one of the hardest aspects is getting the “before” or “then”
shots in the first place. This will take some scrounging around,
particularly in this region of the world, where not much stock was
placed upon the particular moment in time. Buddhism tells you that all
of life is change - so why get excited about recording the moment.
However, one of the greatest sources of the “then” images are postcards
- particularly tourist market postcards. These were generally of
reasonable photographic quality and depicted the subject from a good
angle.
So where are they? This is where you begin asking all the Thai people
you know if they have any old photographs or postcards. After that, look
in second hand shops, the dusty back corners of old Chinese chemist
shops, funny old stores in Naklua - anywhere. But you do have to get
these images first. Remember that you can always have photographs copied
these days and you do not need the negatives. So all you have to do is
borrow, if you cannot beg or steal! Do not worry about image quality, by
the way, because no one expects old photographs to be pristine, in fact
a little bit of fading and staining looks good in the final result,
particularly the sepia tints.
Next part of the project is to find the original area that was
photographed and work out from where the shot was taken. The concept is
to get as close as possible to the original, so that the difference
between the “then” and “now” is just the progress. This does mean
looking critically at the original and working out if it was taken by a
wide angle lens or whatever. If the shot is more than 50 years old, it
was probably taken with a “normal” 50 mm lens, so try that first and
look critically through your own viewfinder, while looking at the
original as the reference.
Of course, some will be easy, like Pattaya Bay taken from the Naval
Lookout at the top of Pratamnak Hill. Others, like the Nipa Lodge will
be harder - just what angle did they take it from? It is also good to
try and duplicate the time of day. Late afternoon or morning? Look at
the shadows and you can work it out!
Now having done all your homework, go out and re-take all those shots
from yesteryear. Again, be very critical with yourself. You do want to
be able to see that this is a re-take of the original. Near enough is
not good enough. Some pictures may be too confusing if there are no
landmarks and you will have to reject some of them, unfortunately, but
you will score some gold!
These new ones are worth having printed as at least 10"x8" and mounted
side by side with the faded originals. This is what makes them so
interesting (and so saleable)! You also have the choice of leaving the
originals as small prints beside the new enlargement, or blowing the old
ones up to 10"x8" as well, which is what I recommend. Believe me, these
will sell! Everyone wants to show “life as it was” - it’s up to you to
do it first!
Modern Medicine:
by Dr. Iain Corness, Consultant
Diet for Dentures
We are all getting older. The average age of westerners is
increasing. The older we get, the fewer teeth we have. The need for dentures
is increasing.
We can now expect to live longer - that’s the up side. Unfortunately, there
is a down side (there always is, isn’t there?) and that is just simply that
the longer you live, the more parts of you that end up wearing out. Just
like your car in that respect. And if you didn’t look after yourself some
years ago, your past indiscretions can surely come round to bite you now!
And I suppose that gets me back to dentures!
Talking about ‘biting’, one of the organs that can show the ravages of time
is your digestive organ, the gut. As the body ages, the gastrointestinal
tract changes and people tend to develop more problems with constipation.
The pundits will tell you a high-fiber diet can prevent that, but many
elderly people, especially those with dentures, do not want to eat the
seed-filled or crunchy food that is typically high in fiber. They go for
soft food that is easily chewed, but is often high in fat.
So where can we get some fiber? Try some cooked or baked vegetables, fresh
fruit and high-fiber breakfast cereals as these are some denture-friendly
ways to get fiber in the diet. Beans and black-eyed peas are also nutritious
and inexpensive.
Another problem, especially in hot climates such as in Thailand, is
insufficient intake of water. The elderly have a decreased thirst and often
do not get enough fluids in their diet. Getting plenty of fluids helps
prevent constipation, because the bowel is a water absorber. The
constipation decreases when fluids are taken generously. Milk, tea, coffee,
soda, ice cream and soup all count as fluids. But not beer, sorry!
Exercise plays a part here too. Get more physical, not less. The amount of
exercise needed depends on the person, but in general, people need to step
up their activity as they get older. Elderly people often do the opposite,
because of bad knees or arthritis. Instead of becoming a couch potato, they
need to walk, bicycle, swim, garden and find other ways to stay on the move.
As we age, our calorie needs decrease due to a drop in muscle strength from
taking less physical activity (see above). However, vitamin and mineral
needs may stay the same or even increase if the body absorbs them less
efficiently. The daily calorific requirement varies from person to person,
but as a very rough guide, males need to drop their calorie intake by around
20 percent after the age of retirement (2,500 cals down to 2,100 cals) and
women from 2,000 down to 1,800 cals.
There are many foods and ingredients needed to retain optimum health,
including those high in Vitamin C, such as blackberries, strawberries,
raspberries, blackcurrants, citrus fruit, kiwi fruit, peaches, mango,
cantaloupe melon, and apples.
Vegetables high in Vitamin A (beta-carotene) and Vitamin C including
carrots, squash, sweet potato, tomatoes, spinach, kale, collard greens,
broccoli, cabbage, Brussels sprouts, onions, leeks and avocado.
Fish should also be included as many are rich in Omega-3 essential fatty
acids and high in Vitamin E, like salmon, mackerel, sardines, herring, tuna
and trout. It is also a good idea to substitute white fish in place of red
meat.
Some nuts and seeds are also rich in Omega-3 essential fatty acids and high
in Vitamin E, including unsalted nuts, walnuts, cashews, Brazil nuts and
almonds, and seeds such as poppy seeds, sunflower, flax seeds and pumpkin
seeds.
Proteins are also important in the diet for dentures and should include
eggs, white fish, milk, cheese, yogurt, lean meat, chicken, beans and
lentils.
Fiber can come from lentils, chick peas (garbanzo beans), brown rice, whole
wheat bread, wheatgerm, whole wheat cereals and whole wheat crackers.
A good spread of items, different dishes every day, plenty of water and
moderation in all things seems to be the answer. A glass of red wine washes
it all down nicely, too.
 Heart to Heart with Hillary
Hi Hillary,
I went to Pattaya and met the most wonderful bar girl and I was her first
customer. I stayed with her for 14 days. She had just arrived and spoke little
English. We communicated via sign language and communicated easy. Finer points a
little hard but we did well. The lady was not travelled and the most beautiful
girl. I set up a bank account before I left and agreed to get her a nice room,
pay for her to learn English, sent money to mumma and sent money for her
children. Well now I know what Thai fever is like. It can break your heart and
your pocket.
Months of beautiful e/mails, phone calls and all the crap from friends for
sending money.
Well I went back to see her and I did not know the same girl. She was living
like a queen and I was living like a Thai boy! I wish I had read the Thailand
guru article first.
I probably don’t feel angry...may be I gave some Thai children something they
have not had for a while. I am a good heart and have been bitten by many Aussie
girls. Just that I really believed with her tears all she told me and I trusted.
The money I sent her destroyed this beautiful girl because when you’re away they
learn all the ropes from the working girls as to how to get more from the
falang.
When I went back my girl had bought land with the brother, travelled with the
children, took mumma to Chiang Mai, visited every town in Thailand. When I went
back I did not recognize her. She drank in her room, went to the beauty salon
and knew everyone in town. We are the falang...not sure if this means sugar
daddy...but I told her I was just a working boy. I do love her to pieces but
unfortunately they try to extort your heart with work the bar and other ideas
they come up with. I told her to do what she has to do if she think like this. I
not send the money so you don’t work the bar, I sent it to help your mumma and
the children.
They simply don’t understand us and pick up from the other girls. I paid her
visa, bank deposit for her to come to Australia, paid the passport
...everything...everything...now she can’t come because I have to pay her
brother for the time she is away.
I know what Thai fever is, it’s a merry go round of heart ache. So now I go back
again and play the game...pay the baht and not the heart. Many lovely people in
this country...and I now have met another with a heart ...and not need the
baht... It cost me a small fortune in a short time but may be I can claim it on
my tax.
Learn the ropes before you go as they are waiting for us. With no regrets.
John, Melbourne
Dear John from Melbourne,
At first I thought you were pulling my leg, but after re-reading (and correcting
spelling and grammar - don’t they teach you English in Australia?) I have
decided you are genuine, and have learned the hard way the difference between
being the hunter and being the hunted. However, you are not the first, nor will
you be the last. The savvy young ladies from the bar will run rings around
inexperienced young visitors.
So did any good come out of the liaison? Yes, the young lady learned some
English. Mumma got to see Chiang Mai, a lovely part of Thailand. She now owns
some land with her “brother”. Yes John, I doubt very much that the man is her
brother. He is more likely to be her husband, I am afraid, my Petal. And you
bought her a passport. By the way, just having a passport is not enough to
guarantee her entry to Australia (or the UK, America or Europe), there is a
small matter of an entry visa, and having a 14 day holiday together is not
considered a permanent relationship by the embassies.
You are still trying to excuse her behavior, by saying “when you’re away they
learn all the ropes from the working girls,” ignoring the fact that she was
already a working girl herself when you first met her. She knew the ropes long
before the young lad from Melbourne appeared on the scene.
John, you will get over the disappointment, and your bank account will recover
too. Enjoy your holidays, but keep a tight grip on your emotions. The vast
majority of working girls do not make good long term mates, as they are looking
for ATMs, not a husband.
Dear Hillary,
Mad buffaloes? Why does it seem that every year around Songkran there is a
severe outbreak of mad buffalo sickness? This often spreads to the mothers of my
favorite bar girls as they need money to go to their aid. My friend, Charlie of
BAE, has helped send many girls home but why hasn’t the government stopped this
outbreak?
Jerry Sabaii
Dear Jerry Sabaii,
Because the government has other red diseases it is trying to stop, as a matter
of priority.
Let’s go to the movies:
by Mark Gernpy
Two interesting films
promised for this week didn’t show up: The International, a Clive
Owen thriller about bank shenanigans in high places; and the Russell
Crowe and all-star-cast crime drama State of Play, now
rescheduled for June.
Now playing in
Pattaya
Milk: US,
Biography/ Drama/ Romance – Cheers for Major Cineplex, which continues
its showing of Oscar nominees and winners! This one has some amazing
performances in a mesmerizing film about the assassination of Harvey
Milk, the first openly gay elected official in the United States, with
Sean Penn, winner of the acting Oscar. An Oscar also went to Dustin
Lance Black for the script, as the best original screenplay. It was
also nominated for Oscar best picture and best director – eight
nominations total. Directed by Gus Van Sant (My Own Private Idaho,
Good Will Hunting). Rated R in the US for language, some sexual
content, and brief violence. Reviews: Universal acclaim.
Just last week, Samoan
film censors banned the film Milk from being sold in the
country. Well worth seeing for a variety of reasons – don’t miss it!
Crank: High Voltage:
US, Action – The indestructible hopped-up hitman Chev Chelios is
played to the hilt once again by Jason Statham, chasing a Chinese
gangster who hijacked his heart and substituted a mechanical one that
needs to be jolted regularly with an electric charge to stay pumping.
Rated R in the US for frenetic strong bloody violence throughout, crude
and graphic sexual content, nudity, and pervasive language.
Fast & Furious 4:
US, Action – Vin Diesel and Paul Walker re-team for the ultimate chapter
of this film franchise built on speed and cars. It’s almost entirely
about car races and car crashes, and it’s a profoundly silly movie.
During the non-action parts, Vin Diesel intimidates people. He’s very
good at it. He does it by furrowing his permanently furrowed brow even
further. Very impressive! Look, some people like all this nonsense!
Mixed or average reviews.
Khan Kluay 2:
Thai, Animation/ Adventure – The legendary elephant is back in action in
this superb sequel. Brilliant, beautiful animation that looks 3D though
really only 2D, with an engrossing story, set in the time of Ayuthaya.
I especially admired the animators’ skill in the opening sequences, as
the camera swoops through forests and jungles, and the beautiful final
images while Khan Kluay was “dead” awaiting his children to return him
to life. It’s much more assured than the first Khan Kluay, and
the animation skills are now really quite advanced. There are some
truly scary parts in the film, as there should be in all good children’s
tales, involving death and destruction. But what can you do? When a
village gets sacked and pillaged, and one’s relatives killed, it’s
difficult to make it look pretty.
Race to Witch
Mountain: US, Adventure/ Fantasy/ Sci-Fi/ Thriller – A perfectly
acceptable and innocuous action/ adventure film for children (mostly)
with all the standard chills and thrills, chase-movie suspense, and
wisecracking humor – and a few slam-bang action setpieces. Well done of
its type. Mixed or average reviews.
Monsters vs. Aliens:
US, Animation/ Sci-Fi – This has gotten some rave reviews from a
number of reviewers, and some highly critical. I found it half
imaginative and amusing, half irritating. Mixed or average reviews.
Sassy Players / Taew
Nak Te Teen Rabert: Thai, Comedy/ Drama – A gay teen soccer
comedy. There’s a little bit of everything in this film. It’s fun.
Directed by Poj Arnon (Bangkok Love Story).
Knowing:
Australia/ US, Drama/ Mystery/ Thriller – Just a lot of fun, and
well-done, in a gloomy sort of way. A teacher deciphers a message in a
time capsule that has been dug up at his son’s elementary school; in it
are some chilling predictions – some that have already occurred and
others that are about to – that lead him to believe his family plays a
role in the events about to unfold. Starring Nicolas Cage. Mixed or
average reviews.
The Shinjuku
Incident: China, Action/ Drama – Featuring Jackie Chan in a
dramatic rather than a fighting mode, and this long-awaited
collaboration with director Derek Yee apparently turns out to be a
well-done study of the problems faced by Chinese immigrants in Japan in
the early 1990s. It’s rather a shame, though: Shown here in a
Thai-dubbed version only, without English subtitles.
Rahtree Reborn:
Thai, Horror/ Romance – A rather amateurish half comedy, half laughably
inept horror film, starring Love of Siam heartthrob Mario Maurer,
experimenting in a different movie genre, one hopes for the last time.
The striking posters are truly much better than the film
Make It Happen:
US, Drama – Embarking on a journey to fulfill her dreams as a dancer, a
young girl discovers a new style of dance that will prove to be the
source of both conflict and self-discovery. From the writer of dance
movies such as The Step Up and Save The Last Dance.
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