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<\/p>\n<\/p>\n
Accounting creativity\u00ab is nothing more than a euphemism for falsehood, for cheating in accounting so that it reflects a distorted reality, to suit the interests of those in power. And today those in power are an EU that at all costs needs to simulate solvency and growth in the countries of its periphery, so that investors do not flee those economies. If they did, there would not be enough money - or will - in northern Europe to avoid bankruptcy and the collapse of Eurozone unity.<\/p>\n
It seems, therefore, that it is in nobody's interest that the reality of the economic miseries of the PIGS (Portugal, Italy, Greece and Spain... and some others such as France...) becomes evident and scares away national and international investors. That is why\u00a0the ECB keeps the risk premium at floor level<\/strong><\/a>\u00a0through all kinds of quantitative and pseudo-covert facilities to banks and states. It is also in charge of keeping alive the profits of banks that have their warehouses full of rotting real estate on the basis of free liquidity bars. And European and Spanish regulators look the other way when financial institutions value these properties above their market price on their balance sheets to avoid obvious bankruptcy. Anything goes to feign stability, for the good of all (sic). Accounting engineering or creativity\u00ab is also being used in Spain.\u00a0when it comes to handling unemployment and other macro figures,<\/strong><\/a>\u00a0on the demand of electoral needs and balancing with the impositions overseen by the Troika.<\/p>\n Now it is the turn of GDP. Since the debt-to-GDP ratio is not improving, given that there is still a bleeding deficit that is increasing the debt, the only solution to make up for this ratio is to increase GDP. But as economic growth is distant and anaemic, GDP will have to be increased \u00abcreatively\u00bb, i.e. by falsifying the statistics on national wealth.<\/p>\n To this end, the EU has created a new regulation called ESA 2010, which comes into force on 1 September 2014. It requires a number of imaginative accounting changes, all of which are designed to inflate the GDP figure. For example, illicit activities such as prostitution, drug trafficking and consumption, alcohol and tobacco smuggling will be included in the calculation of the country's wealth. The quantification of these activities is a mystery, as they are illegal and therefore uncontrolled and unregulated. But we would put our hand in the fire without fear of getting burned that they will be calculated in a way that is at least generous in order to inflate the GDP as much as possible.<\/p>\n That is not the end of the accounting creativity, as various changes are also envisaged in the way such gigantic items of expenditure as those handled in defence are accounted for. For example, weapons and support equipment that are used for more than one year will be counted directly as an investment, thus contributing to increasing the national wealth or GDP figure. Another modification that will mean a very significant increase is that R&D expenditure will have to be counted as investment, also injecting these figures directly into the GDP vein.<\/p>\n All these changes will increase GDP by several points, 2, 3, 5%...? And nobody will take the trouble to compare (or even easily compare) the new figures resulting from the new regulations with those that would have been obtained without these accounting changes. All of Europe will simply congratulate itself for having managed to make the peripheral GDPs grow a few points more, apparently confirming the much-vaunted economic recovery that politicians have been proclaiming for some years now out of pure instinct for political survival.<\/p>\n In short, we are cheating ourselves historically, but absolutely legalised and blessed by the EU. Anything to keep the deception going for a few more years in the EU.\u00a0this financial Matrix in which we have been living for almost a decade now<\/strong><\/a>. Europe has decided to distort reality to the benefit (or detriment) of all, instead of purging the economy as they have done to some extent in the USA. History will tell whether one strategy or the other was more successful. But investors in capital letters would do well to invest in solvency and real bonanza, far from the distortion of accounting traps, however official they may be. Because accounting manipulation is neither infinite nor eternal, and it only buys time while waiting for the economic recovery to come for real. And if it does not come in time,\u00a0the stark reality will emerge again from the sewers<\/strong><\/a>, forcing a purge of what is now hidden under layers and layers of legalised accounting make-up. Fortunately, the investment world today - and increasingly so - goes far beyond the old, recessionary, cheating continent.<\/p>","protected":false},"excerpt":{"rendered":" La \u00abcreatividad contable\u00bb no es m\u00e1s que un eufemismo para definir la falsedad, las trampas en la contabilidad para que \u00e9sta refleje una realidad distorsionada, a demanda del inter\u00e9s de quien ostenta el poder. Y hoy quien manda es una UE que a toda costa necesita simular solvencia y crecimiento en los pa\u00edses de su […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,51,45,41,39,40],"tags":[],"class_list":["post-3898","post","type-post","status-publish","format-standard","hentry","category-actualidad","category-banca","category-asesoramiento-deportistas-artistas","category-economia-y-finanzas","category-crear-mi-propio-family-offices","category-gestion-financiera"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/3898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=3898"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/3898\/revisions"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=3898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=3898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=3898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}