Pyramid Comment

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Sunday, April 11, 2010

Olympic Games Costs - 2012

Update: 15th November 2007

  • This overrun is still 5 years away from the 2012 deadline and if costs have risen so much from the original estimate of £9.3bn the final bill is unknowable.
The costs to host the Olympic Games 2012 are currently escalating in a predictably inevitable increase - £21m and (presumably) still increasing. The original estimates were around £9.3bn.

£21m + £9.3bn = £9.321bn

So, it appears that the increase from £9,300,000,000 -> £9,321,000,000 is trivial enough to be ignored. Only +0.225%.

Eventually, the public will begin to realise a reason for the 'Games':  to divert attention away from global ills. The grotesque cost in times of extreme hardship. Cuts everywhere, though not the 'Games'. Nothing on Earth will prevent the incredibly costly 'Games' from happening.

Think about it. Work it out.

The true ultimate cost won't be known (or certainly published) for many years from now (April 2010) when most people have become so used to the project (running quietly) in the background and consequently forgotten all about it. Like the recession and banks costing £100s bns. It'll all be forgotten so that it can happen again and is in The Plan. Talk it all up as though it is something amazing. Spectators will willingly spend a collective fortune to attend this short event in travel, accommodation, entertainment etc. It demonstrates the extent of the wonder of watching a small bunch of cheats among a (probable) majority of athletes. It seems however besmirched the reputation of these Games, the attendees do so in complete wonder. Almost like the reputation of the UQ (aka UK) Ltd parliament and the MPs that demonstrate both probity and absolute integrity.

Honour amongst thieves

There is no press coverage communicating these massive increases and still 2 years to go. The use of £bns in recent times makes the odd £21m seem almost trivial, yet £21m is still a great deal of finance. It's not a politically worthwhile road to tread anymore. It has no political mileage in it. More an 'embarrassment' and "let's move on, OK". The political emphasis has focused recently only on the general election and for months before that not mentioning these progressing activities as though they should be forgotten. Especially in the recession/depression that exposes the UQ (aka UK) Ltd to continued financial 'bankruptcy'  incessantly burdening the taxpayer (employed, unemployed, pensioner and anybody else who pays tax). The government has always been bankrupt when it comes to any schemes or ideas that actually benefit the nation, but always has many schemes to roll out that places a larger yoke around the UQ (aka UK) Ltd collective taxpayer-neck and in the process makes money for some undefined 'others': Winners And Losers.

Montreal 1976 - 'self-financing' Olympics

  • Montreal won the bid for the 1976 Olympic Games in May 1970 with an expected cost of around $120 million. Announced cost (29th January, 1973): $310 million ($250m for facilities + $60m for administration). The previous Munich Olympics (1972) had actually cost around $600 million (which included the installation of a new subway line) and the Mexico Olympics (1968) in Mexico City had cost approximately $150 million
  • Jean Drapeau (Mayor of Montreal 1954-1957 and 1960-1986): "the Montreal Olympics can no more have a deficit than a man can have a baby" and many Canadians were skeptical that this would be the case. The deficit skyrocketed until the debt of $1.5bn was finally paid off after 32 years (1976 -> 2008).

If $1.5bn (only!) takes 32 years to pay off,
how many will it take to pay off 
$£20bn, $£30bn, $£40bn..?
Probably the end of the

21st century (2099)

And all for 2 'glorious' weeks in 

2012 !!!

  • Prime Minister Pierre Trudeau stated that he wouldn't agree to a coin, stamp or lottery projects unless he received a guarantee from Drapeau that the federal government wouldn't have to pick up any deficit incurred by the Games. The Quebec provincial government subsequently promised to cover any deficit, as long as it didn't exceed $10 million. Prime Minister Pierre Trudeau, who remained determined that the federal government would not be stuck paying Montreal's Olympic deficit, responded to this by saying that this "doesn't seem to be much of a guarantee… We want to know for sure who's going to pick up the tab, whether it be $5 million, $10 million or $100 million."
  • Trudeau eventually agreed to the coin, stamp and lottery projects and they received relative success especially the national lottery, which was Canada's first ever lottery. Montreal's Olympic deficit eventually soared so high that the proceeds from these projects would not make much of a dent
Montreal 1976 - The Real Cost $1.5bn ($120m -> $1500m = x12.5 the 1970 estimate)

Beijing 2008 - almost $60bn

1972 - $600m
1976 - $1,500m (+4 years)
2008 - $20,000m - $40,000m (+36 years)
2012 - £/$30,000m or £/$40,000m or £/$50,000m... (+40 years)?

The final cost of the 2012 'Games' could be well in excess of £30,000m (£30bn) or £40,000m (£40bn) ... Eventually, by 2099. The projected (2008) cost was £9.3bn so a (highly) conservative estimate is more likely to be (at least) around £30bn.

  • Bidding for the 2016 has completed and the 'lucky' country is Rio de Janeiro, Brazil, (August 5-21, 2016). This 'fantastical' event has in recent years, certainly, been exploited and become a true (and almost endless) money making scheme. The real sting is that almost nobody seems to have noticed. The question to be asked is which will be paid off first: the (current is 2012) Olympic Games debt or the global deficit? The 2012 'Games' debt may be only $£20bn, $£30bn, $£40bn..., but the global deficit today is counted by the $£trillions. And that does not include the interest that is mounting already (and increasing daily).
Banking Panic - The Plan