Author Archives: richardbrenneman

Chart of the day III: Greek labor destruction


A new report [PDF] from the Hellenic Statistical Authority [Elstat] reveals the devastation impact of Troika-mandated wage cuts on the Greek working class:

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Chart of the day II: A real American drug problem


And it ain’t crack, smack or weed. . .

From an important Esquire article, which notes:

By the time they reach high school, nearly 20 percent of all American boys will be diagnosed with ADHD. Millions of those boys will be prescribed a powerful stimulant to “normalize” them. A great many of those boys will suffer serious side effects from those drugs. The shocking truth is that many of those diagnoses are wrong, and that most of those boys are being drugged for no good reason—simply for being boys. It’s time we recognize this as a crisis.

BLOG Meds

California state senator en route to the hoosegow


Whilst on the subject of corrupt California politicians, it’s been a bad week for Democrats in the California Senate, with three of the rascals getting the boot, including one exceptional notes that caught the eye of those always over-the-top Taiwanese Animators:

California state Senator Leland Yee: Part-time politician, full-time arms deale

Program notes/transcript:

California state Senator Leland Yee, a staunch advocate of gun control, was arrested on Wednesday by the FBI for illegally trafficking firearms and multiple counts of public corruption.

Yee supposedly asked for campaign donations in exchange for introducing an undercover FBI agent to an arms trafficker and told him how to obtain shoulder-fired automatic weapons and missiles from a Muslim separatist group in the Philippines, according to court documents opened Wednesday.

The charges against Yee were outlined in an FBI affidavit that accused Yee of conspiracy to deal firearms without a license and to illegally import firearms. He was arrested Wednesday and showed up later in federal court, where bail was set at $500,000.

Yee is also accused of taking tens of thousands of dollars in campaign contributions and accepting cash to provide introductions, help a client get a contract and influence legislation. He or members of his campaign team accepted at least $42,800 in cash or campaign contributions from undercover FBI agents in exchange for taking care of the agents’ specific requests.

Senator Yee told an undercover agent he could get him $500,000 to $2.5 million in automatic weapons and missiles from the Philippines. Yee also took the undercover agent through the entire process of getting the arms from a Muslim Separatist group in the Philippines to bringing them to the United States, according to the affidavit by FBI Special Agent Emmanuel V. Pascua.

Leland was also kind enough to accept cash from another undercover agent to set up a meeting, while in another instance, he took cash from the feds in exchange for a Senate proclamation.

Senator Yee was arrested on Wednesday with 25 other people including Raymond ‘Shrimp Boy’ Chow. Looks like it’s going to be Chinese on the prison menu.

Random thoughts on our plutocratic senator


Dianne Feinstein’s everything Ike warned us about in his farewell address to the nation, the embodied fusion of the elements of that military/industrial/academic [MIA] complex that so alarmed the old general during the latter years of his presidency.

And, yes, Ike included academia in his warning, something we’ve sadly forgotten over the years as the problem itself has grown exponentially.

Feinstein and her partner in pilferage — spouse/University of California regent/real estate peddler and developer/defense contract/investment bankster Richard “Greasy Thumb” Blum — are exemplars of the demise of the last semblance of a government created to serve the common good.

That the press invariably describes DiFi as a “liberal” also reveals the utter debasement of the mainstream media and the corruption of language itself.

DiFi and Tricky Dickie are the incarnations of something new, a class of beings we call, for lack of a better term, lootocrats. . .public servants devoted to turning the public into servants of their own insatiable lust for power and pelf.

That they are Democrats is merely a delicious irony.

[And isn't it ironic that DiFi, who serves on the key Senate committees of the MIA complex, only became upset with nation's spooks when she discovered they were also spying on her?]

What’s truly remarkable are the sheer nakedness of the dastardly duo’s greed, their willingness to cast off ever the slightest shred of camouflage as they go about gutting the commons and ensuring that there fellow lootocrats will scoop up every bit of spare change remaining in the pockets of an increasingly impoverished public.

We suspect one major reason that the pair has been able to get away with conduct that would have raised headlines and generated screaming headlines in years past is the finale decline of the American press. Here in California, the press corps has been gutted, with scores of newspaper closed, radio and television news staffs laid off in droves, and the remainder terrified for their jobs and spread so thin that the day-to-day coverage of the consequences of political actions has been diluted to near-homeopathic levels of enfeeblement.

In a sane world, Feinstein and Blum would be clapped in irons, stripped of their ill-gotten gains, and either administered a nice veneer of tar and feathers or locked away with far more honorable thieves, murderers, and arsonists to be subjected to their tender ministrations.

It’s really that bad.

Instead, their names adorn public institutions.

The last time the couple ran into any troubled was fourteen years ago, when she made an unsuccessful run against Pete Wilson for the California governorship. It was the state’s Fair Political Practices Commission which caught them.

From the FPPC website:

Dianne Feinstein, an unsuccessful candidate for Governor in 1990, her committee, and the committee treasurer failed to properly report campaign contributions and expenditures. The campaign statements did not disclose expenditures of $3.5 million, accrued expenses of $380,000, and subvendor payments of $3.4 million. The guarantor of loans totaling $2.9 million, Feinstein’s husband, Richard Blum, was not disclosed. Monetary and non-monetary contributions totaling $815,000 were not reported on campaign statements and late contributions of $90,000 were not reported. Notices were not sent to 166 major contributors who made contributions of $5,000 or more advising them of possible filing requirements.

Not a lot of money to folks like them, but it ain’t chump change either.

Meanwhile, their wealth keeps growing as Blum makes tidy profits selling off post offices to his pals and selling degrees to students at his private colleges financed by federal loans indenturing their lives for years to comes, all thanks to the public purse.

Meanwhile, Blum played a key role in completing the capture of the the University of California by his cronies from the dark side when the former Director of Homeland Security was hired to run what had been the world’s finest public education system.

There oughta be a law. . .

Mr. Fish: Nobody’s perfect


From his serendipitously scathing blog, Clowncrack:

BLOG Fish

Chart of the day: Bubbling away furiously


It’s baaaaaaack. Yep, that old housing bubble is once again in full bloom. Click on the image to enlarge.

From Reuters:

BLOG Bubble

And at the the same time, a headline from the Washington Post notes a parallel phenomenon, the decline vulture purchases of the homes left vacant during the Bush II collapse:

Investment firms curbing their home buying in California

Among the 20 firms buying the most California real estate since January 2012, purchases are down more than 70% compared with last year in each of the last four months.

With the bargains gone, the vultures are preparing to profit from their greed as rent soars and the economy remains in the doldrums, adding yet more pressure on the nation’s dying middle classes.

Either way, good news for senatorial spouse Richard “Greasy Thumb” Blum [see below], whose massive real estate firm will reap more profits along with the lucrative mother lode he’s captured with the sale of the nation’s landmark post offices.

Dianne Feinstein buys a luxury hotel in Berkeley


California’s plutocratic senator and her spouse have found yet another way to profit off the University of California, where spouse Richard “Greasy Thumb” Blum serves as a member of the powerful Board of Regents, including a recent term as president.

From the press release:

FRHI Hotels & Resorts (FRHI), the parent company of luxury and upper upscale hotel brands Raffles Hotels & Resorts, Fairmont Hotels & Resorts and Swissôtel Hotels & Resorts, together with California financier Richard C. Blum and his family, have purchased the historic Claremont Hotel Club & Spa in Berkeley, California, it was announced today. FRHI and the Blum family are equal partners and terms were not disclosed.

The purchase supports FRHI’s growth strategy of acquiring strategic assets in key leading markets.

The new owners will begin work on a multi-million dollar capital investment project to update the hotel’s facilities and enhance the Claremont’s stunning architecture, while at the same time preserving and protecting the character and local charm of the Bay Area landmark. Once the revitalization work is complete, the hotel will join the Fairmont Hotels & Resorts collection, an unrivalled portfolio of hotels that includes famed landmarks such as New York’s The Plaza and The Fairmont San Francisco.

“Growth continues to be one of our top priorities, so we are extremely excited to be adding an asset as attractive as the Claremont,” said Kevin Frid, President, Americas, FRHI Hotels & Resorts. “We see this as an opportunity to grow one of our leading brands with the right product, in the right market, and firmly believe the hotel is a perfect complement to many of the other celebrated hotels in the Fairmont Hotels & Resorts portfolio.”

“My family and I are pleased to participate in an investment in this iconic property. The Claremont is a true California treasure and its future can only be enhanced with the Fairmont imprimatur,” Mr. Blum said.

Blum and his corporate empire have made fortunes preying on taxpayers, and among the senatorial spouse’s holdings via his Blum Capital Partners has been one of the nation’s leading nuclear defense contractors, EG&G. Not so coincidentally, its the University of California which has run the nation’s nuclear labs, including Los Alamos and Lawrence Livermore, though mismanagement scandals have loosened UC’s grip.

Immediately after Blum’s EG7G buy from the warmongering Carlyle Group, the company won a $600 million defense contract, under the aegis of the Senate  Military Construction Appropriations subcommittee, chaired by none other than. . .yep, good ol’ DiFi.

Despite Blum’s position on the UC board, the regents voted to award his own URS a contract to build a high tech gym immediately adjacent to California Memorial Stadium, a facility which sits directly atop the Hayward Fault, which federal geologists have named the most likely source of the Bay Area’s next major earthquake. URS withdrew after the press focused attention on the clear conflict of interest. From as story we wrote for the Berkeley Daily Planet:

At that time, the construction firm hired to manage the gym project was the URS Corporation, of which UC Board of Regents Chair (and spouse of U.S. Sen. Dianne Feinstein) Richard Blum had been a major shareholder until the year before. URS has subsequently withdrawn from the project.

Through another of his holdings, Blum is also profiting over the privatization of America’s historic post offices, complete with their remarkable trove of Depression-era public art.

Here’s a report from Peter Byrne, the journalist who’s done more than anyone else to expose the nest of military/industrial/academic corruption that is the DiFi/Tricky Dicky:

Add to that Blum’s holdings in private for-profit colleges, combined with UC’s aggressive moves to raise tuition for popular majors offered in his own money-making institutions, and you have a picture of remarkable institution corruption.

The Blum/Feinstein acquisition of the Clarement, spa favored by Hollywood luminaries is a logical move, given that the facility is favored by elite UC visitors of the sort entertained by regents in search of bug bucks donations. . .a search we documented over the course of our years at the Berkeley Daily Planet.

Ain’t it wunnerful?

The dynamic duo is the perfect embodiment of what Dwight David Eisnhower warned us about in his farewell address:

Today, the solitary inventor, tinkering in his shop, has been overshadowed by task forces of scientists in laboratories and testing fields. In the same fashion, the free university, historically the fountainhead of free ideas and scientific discovery, has experienced a revolution in the conduct of research. Partly because of the huge costs involved, a government contract becomes virtually a substitute for intellectual curiosity. For every old blackboard there are now hundreds of new electronic computers. The prospect of domination of the nation’s scholars by Federal employment, project allocations, and the power of money is ever present — and is gravely to be regarded.

Yet, in holding scientific research and discovery in respect, as we should, we must also be alert to the equal and opposite danger that public policy could itself become the captive of a scientific-technological elite.

Richard Blum and Dianne Feinstein. . .the American nightmare.

Mr. Fish: Lap Top Flyer


America’s most scathing social criticism cartoonist is back, and there’s lots more just posted at his apodictically apocalyptic blog, Clowncrack:

BLOG Fish

Chart of the day III: Kochian reality screws the poor


From the Center on Budget and Policy Priorities, evidence of the impact of all that Koch Brothers money on the rich and poor in the state that gave them birth and serves as the home for their colossal financial empire:

BLOG Kansas

Chart of the day II: A Kochian tar sands bottom line


The potential bottom line for the liberscarian bothers,  also from that ominous IFG report [PDF]. Clickk on the image to enlarge:

layout

Chart of the day: A Canadian tar sands cui bono


If you’re wondering who stands to reap the biggest profits from the environmentally dangerous Canadian tar sands oil rush, consider this from a sobering new report [PDF] from the International Forum on Globalization. Click on the image to enlarge:

layout

Chart of the day: The geopolitics of belief


From a new report by the Pew Research Center [PDF]:

Microsoft Word - Pew Research Center Global Attitudes Project Be

Vangelis Papavasiliou: Grecoausterity beneficiaries


From the editorial cartoonist for Eleftherotypia:

Shopping for cheap labour will be all that easier if the troika gets its way.

Shopping for cheap labour will be all that easier if the troika gets its way.

Explaining a lengthy hiatus


We’ve been offline for some days now, and for those who follow our meandering musings, an explanation is in order.

It begins, of course, with that chemotherapy that so dominated our life following the removal of a cancerous bladder and prostate some 16 months ago.

Chemo’s no picnic in itself, what with the attendant nausea, constipation, and general enervation that comes when your flood the body with a noxious, toxic brew designed to bring you close to the brink of death in order to kill off something even more deadly [and of the two malignancies we contracted, the micropapillary variety that had ravaged our bladder had also escaped the organ and spread to at least one lymph node — necessitating the chemo].

But what has been worse in many regards has been the accompanying neurological damage wrought by the chemo — something we weren’t anticipating.

In brief, the chemo has left the soles of our feet tingling, both benumbed and painful, as when sensation begins to return after they “fall asleep” and begin the reawakening process. And in the same way as walking becomes awkward and somewhat painful in that state because the brain isn’t getting feedback critical for balance, so now is every step we take.

And the attempt to stand on a chair to grab a photo becomes almost impossible, because the balance has been critically, and we fear, permanently impaired.

If that weren’t enough, there’s the hearing. Or, rather, the increasing lack of it.

For some thirty-fove years or more we’ve also been afflicted with another ailment, rheumatoid arthritis [RA], in which the body’s immune system is somehow reprogrammed to attack the connective tissue, in particular, the sinovial tissue that protects the joint, in a process that’s quite literally inflammatory.

To battle RA, doctors prescribe a mix of immunosuppressants [including one drug, methotrexate, also used in cancer chemo and which in itself can be carcinogenic [go figure]. But another class of drugs is used to treat thre inflammatory symptoms, the so-called non-steroidal anti-inflammatories, of NSAIDS.

Now one of the side effects of long-term NSAID use is loss of high frequency hearing accompanied by tinnitus, more commonly known as rining in the ears.

Now, thanks to chemo, our high frequency hearing loss is accompanied by low frequency hearing loss — effectively masking out much of the sounds of everyday life. In consequence, going to movies has lost much of its pleasure, and everyday conversations have become a chore, as we miss much of what is said.

There’s no effective treatment for the feet, and the cost of hearing appliances [which offer minimal help] is beyond our means.

There’s also another neurological impact of chemo, and that’s on the hippocampus, a tiny seahorse-shaped organ [hence the name] buried deep in the brain that plays a critical role in memory function.

During and immediately after the chemo, we had noticed significant impairment in memory function, and while there’s been noticeable improvement since, we still don’t feel entirely up to snuff.

And then there’s the whole question of work, of finding a way to put our skills to work in a way that brings in a modest flow of revenue to keep the whole game afloat.

So what happened?

Basically, we hit a wall.

Pondering the next step

We’ve spent much of the last year working a dozen or more hours a day to assemble collections of headlines revealing patterns of exploitation at work in nations across the globe as those already rich exploited the global crisis to consolidate wealth and power and transform populations into indentured serfs, shackled by debt.

We left conclusions to readers, assuming that those who chanced upon our efforts could discern patterns emerging from seemingly disparate events.

Then came Edward Snowden’s revelations of the deep forces at work within our newly digitized world, as well as emerging “security” crises exploited by the same forces which had broiught the world to the brink of financial disaster.

In time, the cumulative impact of all our reading — combined with the impacts of the chemo and our relative isolation — took its toll.

So now we’re left, at age 67 and still an agry young man, pondering what step to take next as our physical and fiscal resources dwindle.

Also up for question is what shape esnl will assume next.

We have no answers. . .

Chart of the day: The shifting politics of pot


From the Washington Post, evidence that shifting generational attitudes have resulted in a slim majority of Americans now favoring the end of cannabis prohibition [click on the image to enlarge]:

A look at the history of public opinion on marijuana legalization.

Headlines of the day II: EconoEuroAsianFukuDup


A very, very long compilation and perhaps the last of its sort, covering a panoply of notable developments in the economic, political, and environmental domains:.

For our first item, via the Press Gazette, proof there’s more than one way to control information:

Journalists seeking accreditation for Brit Awards asked to agree coverage of sponsor Mastercard

A PR company representing MasterCard, who are a major sponsor for tonight’s Brit Awards for pop music, appear to have asked journalists to guarantee coverage of their client as the price of attending.

Before providing two journalists from the Telegraph with accreditation to attend the event House PR has asked them to agree to a number of requests about the coverage they will give it.

They have even gone as far as to draft Twitter messages which they would like the journalists to send out – and asked that they include a mention of the marketing campaign #PricelessSurprises and @MasterCardUK.

And from the Los Angeles Times, What’s in Your Wallet?™:

Capital One says it can show up at cardholders’ homes, workplaces

  • The credit card company’s recent contract update includes terms that sound menacing and creepy.

Ding-dong, Cap One calling.

Credit card issuer Capital One isn’t shy about getting into customers’ faces. The company recently sent a contract update to cardholders that makes clear it can drop by any time it pleases.

The update specifies that “we may contact you in any manner we choose” and that such contacts can include calls, emails, texts, faxes or a “personal visit.”

As if that weren’t creepy enough, Cap One says these visits can be “at your home and at your place of employment.”

The police need a court order to pull off something like that. But Cap One says it has the right to get up close and personal anytime, anywhere.

We switch to a global headline that overshadows pretty much defining the nature of life in the era of neoliberal austerity. From Reuters:

World risks era of slow growth, high unemployment: OECD

Sweeping reforms are urgently needed to boost productivity and lower barriers to trade if the world is to avoid a new era of slow growth and stubbornly high unemployment, the OECD warned on Friday.

In its 2014 study on “Going for Growth”, The Organisation for Economic Co-operation and Development said momentum on reforms had slowed in the aftermath of the global financial crisis, with much of it now piecemeal and incremental.

From CBC News, another consequence of neoliberalism comes back to bites one its leading proponents in the bottom line:

Wal-Mart cuts growth forecast as poor shoppers spend less

  • Food stamp cuts in U.S. eat into same-store sales

Recent U.S. cuts in federal food stamps for the working poor and unemployed has led Wal-Mart Stores Inc to lower the forecast for its full-year profits.

The world’s largest retailer still expects net sales growth of three to five per cent this year.

But less food stamp aid, higher taxes and tighter credit are eroding its grocery sales, as its low-income customers struggle to get by on less.  As many as a fifth of Wal-Mart’s customers rely on food stamps, according to one analyst quoted by Reuters.

From Salon, more of the same, this time from the company founded by the new publisher of the Washington Post:

Worse than Wal-Mart: Amazon’s sick brutality and secret history of ruthlessly intimidating workers

  • You might find your Prime membership morally indefensible after reading these stories about worker mistreatment

Amazon equals Walmart in the use of monitoring technologies to track the minute-by-minute movements and performance of employees and in settings that go beyond the assembly line to include their movement between loading and unloading docks, between packing and unpacking stations, and to and from the miles of shelving at what Amazon calls its “fulfillment centers”—gigantic warehouses where goods ordered by Amazon’s online customers are sent by manufacturers and wholesalers, there to be shelved, packaged, and sent out again to the Amazon customer.

Amazon’s shop-floor processes are an extreme variant of Taylorism that Frederick Winslow Taylor himself, a near century after his death, would have no trouble recognizing. With this twenty-first-century Taylorism, management experts, scientific managers, take the basic workplace tasks at Amazon, such as the movement, shelving, and packaging of goods, and break down these tasks into their subtasks, usually measured in seconds; then rely on time and motion studies to find the fastest way to perform each subtask; and then reassemble the subtasks and make this “one best way” the process that employees must follow.

Amazon is also a truly global corporation in a way that Walmart has never been, and this globalism provides insights into how Amazon responds to workplaces beyond the United States that can follow different rules. In the past three years, the harsh side of Amazon has come to light in the United Kingdom and Germany as well as the United States, and Amazon’s contrasting conduct in America and Britain, on one side, and in Germany, on the other, reveals how the political economy of Germany is employee friendly in a way that those of the other two countries no longer are.

ProPublica covers the sadly predictable:

U.S. Lags Behind World in Temp Worker Protections

‘Permatemping’ cases highlight lack of U.S. protections for temp workers. Other countries limit the length of temp jobs, guarantee equal pay and restrict dangerous work.

Since the 2007-09 recession, temp work has been one of the fastest growing segments of the economy. But a ProPublica investigation into this burgeoning industry over the past year has documented an array of problems. Temps have worked for the same company for as long as 11 years, never getting hired on full-time. Companies have assigned temps to the most dangerous jobs. In several states, data showed that temps are three times more likely than regular workers to suffer amputations on the job. And even some of the country’s largest companies have relied on immigrant labor brokers and fly-by-night temp agencies that have cheated workers out of their wages.

In contrast, countries around the globe have responded to similar abuses by adopting laws to protect the growing number of temps in their workforces. These include limiting the length of temp assignments, guaranteeing equal pay for equal work and restricting companies from hiring temps for hazardous tasks.

Badly Behaving Banksters pay their dues, via TheLocal.ch:

Credit Suisse to pay $196m US fine

Swiss banking giant Credit Suisse has admitted it violated US securities laws and will pay $196 million to settle the charges, the Securities and Exchange Commission said Friday.

The SEC action came as the Department of Justice investigates Credit Suisse for allegedly helping US citizens illegally avoid taxes.

The SEC said that Credit Suisse Group violated laws by providing cross-border brokerage and investment advisory services to US clients without first registering with the SEC.

According to the SEC, the Zurich-based global bank began conducting the unregistered services as early as 2002 and had collected about $82 million in fees on the accounts before completely exiting the business in mid-2013.

Belated action from United Press International:

California unveils legislation to help deal with drought

California officials Wednesday unveiled a $687.4 million plan to help the state cope with its severe drought.

Gov. Jerry Brown and legislative leaders said the proposal would provide funds for direct relief for farm workers who will likely be out of a job for an extended period as growers cut back on their planting.

In addition, the legislation provides funding for water-conservation projects and a public-awareness campaign to remind Californians it is shaping up to be a long, dry summer.

The Christian Science Monitor adds context:

California drought: Farmers cut back sharply, affecting jobs and food supply

With drought limiting water deliveries from northern California and the price of irrigation skyrocketing, farmers’ fields lie fallow and the politicized debate over solutions rages.

And from the U.S. Drought Monitor, the latest image of California’s water crisis, with severity increasing with color darkness [the dark brown being the worst, “Exceptional Drought”]:

BLOG Drought

Al Jazeera America campaigns:

Push to boost wages at big LA hotels

  • City council to consider proposal to raise hourly rate to $15.37, which would be among nation’s highest if passed

Three Los Angeles City Council members have launched a bid to nearly double the minimum wage for hotel workers to $15.37 an hour, among the highest proposed minimums nationwide.

The living wage proposal, applicable to about 11,000 workers employed by Los Angeles hotels with more than 100 rooms, would help to lift employees out of poverty and benefit the city economy, proposal supporters said on Tuesday when the proposal was introduced.

California’s minimum wage is $8 an hour with a $1 bump coming in July. It will reach $10 in 2016. Cities and counties can set a higher minimum wage. In San Francisco, for example, the minimum is $10.74 with annual cost of living increases. Nationwide, a number of cities have adopted or are considering minimum wage proposals, including a citywide $15-per-hour rate urged by Seattle Mayor Ed Murray.

Meanwhile, there’s another crisis in California, reported by the Los Angeles Times:

Many L.A. Unified school libraries, lacking staff, are forced to shut

Budget cuts leave about half of L.A. Unified’s elementary and middle schools without librarians, and thousands of students without books.

About half of the 600 elementary and middle school libraries are without librarians or aides, denying tens of thousands of students regular access to nearly $100 million worth of books, according to district data.

The crisis has exacerbated educational inequalities across the nation’s second-largest system, as some campuses receive extra money for library staff and others don’t. It has also sparked a prolonged labor conflict with the California School Employees Assn., which represents library aides.

Cashing in the Mile High City’s state with the London Telegraph:

Bumper cannabis sales in Colorado form billion-dollar industry

  • In America’s first cannabis-legal state sales are surging far ahead of predictions, bringing huge additional tax revenue

Cannabis is likely to become an annual billion-dollar legal industry in the sate of Colorado by next year after officials suggested greater volumes of the drug are being sold than anticipated.

Colorado was the first state in the US to licence and tax sales of the drug for recreational use, allowing dozens of shops to open for business on Jan 1, 2014.

In the lead up to legalisation it was estimated that sales would reach $395 million in the 2014/2015 financial year.

But in its first assessment since the New Year Governor John Hickenlooper’s budget office has dramatically increased that to $612 million.

When the $345 million in estimated sales of the drug to people with medical conditions is added that means a total of almost $1 billion.

The Hill concedes the despicably considered:

Obama drops proposal to cut Social Security from his budget

Yielding to pressure from congressional Democrats, President Obama is abandoning a proposed cut to Social Security benefits in his election-year budget.

The president’s budget request for fiscal 2015, which is due out March 4, will not call for a switch to a new formula that would limit cost-of-living increases in the entitlement program, the White House said Thursday.

“This year the administration is returning to a more traditional budget presentation that is focused on achieving the president’s vision for the best path to create growth and opportunity for all Americans, and the investments needed to meet that vision,” a White House official said.

Obama last year proposed the new formula for calculating benefits as an overture to Republicans toward a “grand bargain” on the debt.

Barry O continues his neoliberal trade crusade with BBC News:

Obama champions controversial North America-Asia trade deal

US President Barack Obama has vowed to expand trade agreements between North America and Asia, despite concerns within his own political party.

Ending a day of talks with the leaders of Mexico and Canada, Mr Obama said they must keep up their “competitive advantage”.

The three countries are negotiating a major Pacific trade deal.

But Mr Obama’s Democratic allies oppose the agreement amid concerns that American jobs could be lost.

Republic Report adds significant context:

Obama Admin’s TPP Trade Officials Received Hefty Bonuses From Big Banks

Officials tapped by the Obama administration to lead the Trans-Pacific Partnership trade negotiations have received multimillion dollar bonuses from CitiGroup and Bank of America, financial disclosures obtained by Republic Report show.

Stefan Selig, a Bank of America investment banker nominated to become the Under Secretary for International Trade at the Department of Commerce, received more than $9 million in bonus pay as he was nominated to join the administration in November. The bonus pay came in addition to the $5.1 million in incentive pay awarded to Selig last year.

Michael Froman, the current U.S. Trade Representative, received over $4 million as part of multiple exit payments when he left CitiGroup to join the Obama administration. Froman told Senate Finance Committee members last summer that he donated approximately 75 percent of the $2.25 million bonus he received for his work in 2008 to charity. CitiGroup also gave Froman a $2 million payment in connection to his holdings in two investment funds, which was awarded “in recognition of [Froman’s] service to Citi in various capacities since 1999.”

Getting together with Kyodo News:

Crucial TPP ministerial meeting begins in Singapore

Ministers from the 12 countries involved in the envisioned Trans-Pacific Partnership free trade accord began talks in Singapore on Saturday seeking to achieve the challenging goal of reaching a broad agreement after missing an end-of-2013 deadline.

But the momentum for an early conclusion of the ambitious U.S.-led trade initiative has been overshadowed by U.S. frustration over Japan’s reluctance to open up its agricultural market, as well as Malaysian and Vietnamese opposition to reforming state-owned firms.

During a five-day working-level meeting through Friday, each country held bilateral meetings on the sidelines of plenary sessions to bridge gaps over outstanding issues, but officials made little progress on thorny issues.

The Japan Times covers amen choristers:

Don’t fold on TPP tariffs: senators

A bipartisan group of senators has sent a letter to the U.S. Trade Representative Michael Froman urging the Obama administration not to make tariff concessions to Japan during the Trans-Pacific Partnership trade talks.

The letter, dated Saturday and signed by 15 senators led by Michael Bennett, a Colorado Democrat, and Charles Grassley, an Iowa Republican, “asked for assurances that the TPP negotiations will not be concluded until Japan agrees to eliminate tariff and non-tariff trade barriers for agricultural products,” the National Pork Producers Council said the same day.

Tokyo and Washington are jousting over Japanese duties on five “sacred” farm product categories — rice, beef and pork, wheat, dairy and sugar — that Tokyo wants to retain under the TPP, which is based on the principle of abolishing all tariffs.

The Obamanations continue via The Guardian:

Obama begins Mexico summit with orders lowering trade barriers

  • Before meeting Mexican and Canadian heads of state, president bypasses Congress by signing trade liberalisation orders

Barack Obama begins a North American summit in Mexico on Wednesday with a gesture of defiance toward allies in Congress who are hampering his ability to negotiate controversial trade liberalisation agreements.

In the latest in a series of so-called executive actions promised in his state of the union address, the US president will sign new measures to speed up imports and exports for businesses by reducing bureaucratic barriers.

And from one Canadian province, a modest resistance to the tenor of the times, via CBC News:

Quebec proposes rules to prevent hostile takeovers

  • Budget sets out economic agenda that includes government taking stakes in mining sector

Quebec’s Parti Québécois government proposed measures to shield businesses headquartered in Quebec from hostile takeovers in a budget tabled Thursday.

It was one in a series of proposals geared at keeping Quebec business in the province that also included plans for the government to buy direct stakes in oil and mining companies with new finds in Quebec.

The proposal comes at a time when the minority government is expected to call a provincial election and may not last long enough to pass through the legislature.

From MercoPress, deserved anxiety:

IMF concerned with risks in emerging markets from pulling back stimulus too quickly

Advanced economies, including the United States, must avoid pulling back stimulus too quickly given the weak global economic recovery and recent market volatility highlights key risks in some emerging markets, the International Monetary Fund said on Wednesday.

The IMF said there was scope for better coordination of central bank exit plans, something many emerging market policymakers have called for as the Federal Reserve has begun to wind back its US support for the economy.

In a briefing note prepared for upcoming Group of 20 meetings, IMF staff said the outlook for global growth was similar to its last assessment in January, with growth of about 3.75% seen for this year and 4.0% in 2015.

More from China Daily:

Growth in emerging economies to decline: IMF

Anticipated growth in emerging surplus economies, including China’s, is “expected to decline” and output gaps in advanced economies remain negative, the International Monetary Fund said in a report released ahead of this weekend’s G-20 finance meeting in Australia.

Global recovery from the recession has been “disappointingly weak,” and G-20 countries are still producing “far below” the longer-term trend, the report said.

While global economic activity picked up in the second half of 2013 due to strengthening advanced economies, trade volumes remain below trend, decline in unemployment and strong private demand “did not materialize,” the IMF said Wednesday.

Against the backdrop of slower-than-anticipated global growth, emerging economies are experiencing bouts of volatility in the financial sector, influenced in part by weakening sentiment toward emerging economies, the IMF said.

On to Europe with another red flag from BBC News:

Eurozone business growth slowed in February, PMI study suggests

Business growth in the eurozone eased this month but the bloc’s economy continued to expand at a “robust pace”, a closely watched survey suggests.

The latest Markit eurozone composite purchasing managers’ index (PMI) dipped to 52.7 from 52.9 in January. A figure above 50 indicates expansion.

Within the bloc, Germany and France continued to see contrasting fortunes. German companies saw strong growth, but activity among French firms declined for the fourth month in a row.

Another from Deutsche Welle:

Eurozone January inflation too tame to please ECB

In January, price increases in the eurozone remained well below the rate desired by the European Central Bank. The timid inflation rate for the month points to a lackluster recovery in the recession-hit currency area.

Annual inflation in the 18-nation eurozone remained tame in January, recording 0.8 percent higher than in the previous month of December, according to Monday.

In the wider 28-nation European Union, inflation fell to 0.9 percent against 1 percent at the end of last year, Eurostat said.

Compared with January 2013, however, the rates for both areas were significantly lower, coming down from 2 percent and 2.1 percent annual inflation respectively a year ago.

And from Eurostat [PDF], the graphic that tells the deeper story [click to enlarge]:

BLOG Inflate

Another indicator of creepy europoverty from The Guardian [obesity rates rise as poverty increases, with the rates of obesity highest in Europe’s unfortunately named, crisis wracked PIGS]:

Overweight children could become new norm in Europe, says WHO

As many as a third of 11-year-olds in some countries are overweight, as well as two-thirds of UK’s adult population

Being overweight is in danger of becoming the new norm for children as well as adults in Europe, the World Health Organisation warns, issuing figures showing that up to a third of 11-year-olds across the region are too heavy.

According to the EU figures, Greece has the highest proportion of overweight 11-year-olds (33%), followed by Portugal (32%), Ireland and Spain (both 30%).

More anxieties from EurActiv:

Europe tries to reverse drift towards de-industrialisation

After a lost decade, Europe is trying to reverse a decline in manufacturing which has brought industrial output to a standstill. The issue will reach the EU’s top decision-making body in March when European leaders meet for their quarterly summit in Brussels.

Over the past few years, the European Commission has been the most vocal EU institution campaigning for the continent’s industrial revival, positioning itself as a driver of competitiveness and job creation.

Within the EU executive, the commissioner for enterprise, Antonio Tajani, has emerged as the winner of an internal debate opposing supporters of industry to environmentalists, whose policies were blamed for hampering the economy.

Another warning from New Europe:

North-South gap weakens employment and social cohesion

  • The latest European Vacancy Monitor revealed a growing North-South divide

A widening gap in job opportunities between Northern and Southern EU countries is threatening the employment and social cohesion of the EU.

On 24 February, the European Commission announced the latest issue of the European Vacancy Monitor (EVM), which indicated a shortage in labour supply in countries such as Austria, Denmark Sweden, Estonia and Latvia, and an increased competition for jobs in countries such as Greece, Slovakia and Spain.

László Andor, European Commissioner for Employment, Social Affairs and Inclusion, said that the Northern-Southern employment gap indicates Eurozone’s employment and social asymmetries. “Diverging job prospects in Northern and Southern Europe underline mismatches in the European labour market, linked also to Eurozone asymmetries. Labour mobility might help to reduce those imbalances. Tools supporting workers mobility within the European labour market such as EURES are available to help job seekers find job opportunities,” Commissioner Andor said.

A shift in sentiment from EUobserver:

Poll: Socialists to top EU elections, boost for far-right

Europe’s socialists are set to top the polls in May’s European elections, according to the first pan-EU election forecast.

The projections, released by Pollwatch Europe on Tuesday (19 February), give the parliament’s centre-left group 221 out of 751 seats on 29 percent of the vote, up from the 194 seats it currently holds.

For their part, the centre-right EPP would drop to 202 seats from the 274 it currently holds on 27 percent of the vote across the bloc. If correct, it would be the first victory for the Socialists since 1994.

EurActiv takes a hit:

Financiers snipe at draft EU law against money laundering

Representatives of financial transactions services have criticised harshly the EU’s draft legislation to fight money laundering which will go through its first parliamentary vote today (20 February) and enjoys the support of the anti-corruption champion, Transparency International.

The European Commission proposal, tabled in February last year, is aimed at tightening EU rules on financial transactions in a bid to step up the fight against money laundering and terrorism funding.

One of the main elements of the proposal is the introduction of a mechanism to name the beneficial owners of companies, in order to prevent the illicit activities which are often carried out under anonymity.

The proposal also includes requirements to increase customer due diligence and tightening the rules obliging financial companies to identify their clients and the legitimacy of their activities.

Europe Online pulls back:

Iceland moves to withdraw EU application

Iceland’s centre-right government is to seek parliamentary approval to withdraw its application to join the European Union, opting not to restart accession talks that were put on ice a year ago.

A bill proposing the withdrawal was sent to parliament late Friday and was due to be debated next week, a Foreign Ministry spokesperson told dpa on Saturday.

The move came after the parliamentary caucuses of the ruling parties – the centrist Progressive Party and the conservative Independence Party – voted Friday to withdraw the application.

In comments on the proposal quoted by online news site Visir.is, the government said it “did not have a support base” to complete the accession process.

Off to Britain, with a major policy reversal of the post-equine escape animal enclosure locking sort from Sky News:

Cameron: UK Ready To Fund New Flood Defences

  • David Cameron tells Sky News he is ready to open the Government’s “chequebook” to build new flood defences.

David Cameron has suggested that his “money is no object” pledge on the flood relief effort could be extended to cover the costs of new defences.

In an exclusive interview with Sky News, the Prime Minister said he was ready to take out his “chequebook” following a major review of what went wrong and how it could have been prevented.

“You’ve got to look at where the floods have been this time, compared with 2007, compared with 2003,” he said.

From the London Telegraph, the usual result:

Wages rise but still below inflation

  • Pay increase and a fall in unemployment a boost for the Bank of England

Wages are still failing to keep up with the rising cost of living despite climbing at a faster rate in the final quarter of last year.

Average weekly pay including bonuses edged up 1.1pc to £478 in the three months to the end of December, up from the 0.9pc rate of increase in the three months to the end of November, according to figures from the Office for National Statistics.

However, the Government’s preferred inflation measure, the consumer prices index (CPI), currently stands at 1.9pc – below the 2pc target – despite a surprise 0.1 point fall on Tuesday.

Another austerian consequence from The Observer:

Cash-strapped older women are forced back to work

  • Older women taking on more jobs, study finds, but pay gap between the sexes is growing wider

More than three-quarters of the rise in female employment, which hit record levels last December, is the result of women aged over 50 taking on jobs, a study has found.

A report by the TUC to be released this week has established that 2,278,000 more women are now working than in 1992, and that 1,645,000 (72%) of these are aged 50 or over.

Last week the government welcomed news that more women were in work, with the proportion – 67.2% – the highest since records began 43 years ago. The TUC study pinpoints how many older women have felt the need to return to work or to continue working until later in life, for a combination of reasons. These include the rising cost of living, the increase in the state pension age and the fall in value of workplace pensions.

While much of the rise in female employment is due to the greater number of over-50s in the population, the rate of employment has risen too. In 1992, 50.7% of women in the 50-64 age group were economically “inactive”, compared with 36.8% today.

The Observer follows hunger in posh places:

‘Most desirable’ district in the country has three food banks

  • In wealthy towns, families hit by falling incomes and benefit cuts are increasingly being forced to rely on charity handouts

Volunteers have sounded the alarm over a growing reliance on food banks in one of the richest areas in Britain.

Weekly earnings in Hart in Hampshire, recently named as the most desirable district in the country for quality of life, are a third higher than the national average. But the district also has three food banks, which have given out more than 1,000 emergency food parcels in the past six months.

Anti-poverty campaigners say that, even in wealthy areas such as Hart, benefit changes and low wages are creating growing pockets of desperate need.

EurActiv readies the trial:

Britain sets out new test to limit EU migrant benefits

Britain laid out new rules on Wednesday (19 February) designed to limit the access that migrants from other European Union states have to the country’s welfare system.

British Prime Minister David Cameron is seeking to curb immigration into Britain in an effort to quell concerns about migrants entering the country to claim benefits, referred to as ‘benefits tourism’. The move may also stop voters defecting to the anti-immigration UK Independence Party.

The new test, due to come into effect on March 1, sets a minimum income threshold to determine whether a migrant working in the UK should have access to the wider suite of benefits that comes with being classed as a worker rather than a jobseeker.

But the Usual Suspects are doing quite well, thankee kindly. Via Reuters, a case of Banksters Behaving Brazenly:

HSBC to announce bonuses totaling $4 billion: report

HSBC will announce staff bonuses totaling just under 2.4 billion pounds ($4 billion) globally for 2013 and is expected to report a significant rise in pretax profit, Sky News reported on its website on Saturday without citing its sources.

Referring to an unnamed source close to the bank, Sky also said Chief Executive Stuart Gulliver will receive a 1.8 million pound bonus as part of an overall pay deal worth more than 7 million pounds, though this would be less than his previous year pay deal of 7.4 million.

Europe’s biggest bank is expected to announce the size of its bonus pool on Monday along with its yearly results. Bonus payments remain a sensitive issue as many Britons still blame banks for the 2008 financial crisis, after which the state was forced to bail out RBS and Lloyds.

On to Scandinavia and some hard times intolerance from TheLocal.no:

Three men charged for racist attack in Norway

Three men in their twenties have been charged for assaulting a black man in northern Norway, allegedly telling him “we do not like immigrants in Verdal” as they hit him on the back with a snow shovel.

Jacob Kuteh, who was born in Liberia, was hospitalized after the  attack, which took place on Saturday night.

Kuteh claimed the men hit him, strangled him and kicked him in the head, before hitting him with a snow shovel, all the while telling him, “we hate you. We’ll take you.”

“I’ve lived here for ten years and have never experienced anything like this,” Kuteh told VG newspaper. “I have kids that go to school here and it’s no fun at all that someone has suddenly come and told me that they do not like the colour of my skin.”

Sweden next, with a demographic note from TheLocal.se:

Immigrants behind boom in Sweden’s population

The population of Sweden saw the biggest yearly increase in 70 years last year, according to new statistics, thanks largely to the almost 120,000 immigrants who arrived throughout the year.

Sweden’s population on the last day of 2013 was 9,644,864 – a 0.93 percent hike from 2012. The total increase was the largest since 1946, and statisticians at Statistics Sweden (Statistiska centralbyrån – SCB) marked it down to a record-high level of immigration.

In total, 115,845 immigrants arrived in Sweden in 2013, many from Syria and Somalia. The figure is the highest Sweden has ever had in a one-year period. The men outnumbered the women by around 5,000.

TheLocal.se again, this time with a contrarian finding:

Romanian beggars cleared in court

A district court in central Sweden has cleared three Romanian nationals of begging following a previous indictment, saying they did not need the permission of the police to beg.

The trio had previously been prosecuted for begging on the streets of Södertälje, Stockholm county, in January. In court it was debated whether the three individuals had broken any local laws regarding the collection of money.

Local newspaper Länstidningen said that the case was unique as the issue has never been tested before by law.

According to local Södertälje regulations police permission is required for the “collection of money in boxes or similar.” In court the example of street musicians, who don’t require police permission, was raised and comparisons were made between the beggars and street performers.

And more academic austerity ahead with TheLocal.se:

Borg to cut student grants and pension perks

With autumn elections on the horizon, Sweden’s Finance Minister Anders Borg said his government would cut student grants and make alcohol and tobacco more expensive, part of a budget plan to fill Sweden’s coffers.

“You shouldn’t stoke the fire in good times,” Borg told reporters in Stockholm on Thursday as he mapped out the centre-right government coalition’s budget prognosis for the near- and medium term. He said he no longer saw the need to use stimulus measures to keep Sweden’s economy buoyant, and argued that it was time to strengthen public finances.

“Sweden needs proper levees in place before the next crisis,” Borg said, adding that Sweden’s reliance on liquidity and its high household indebtedness was “a big element of uncertainty in the Swedish economy”.

Off to the Netherlands with stagnation from DutchNews.nl:

House prices stabilise but building permits reach 60-year low

House prices were down just 0.5 percent in January, compared with January 2013, showing house prices have now stabilised, the national statistics office CBS says on Friday.

Month on month, there was a 0.4% rise in house prices.

House prices are now in line with 11 years ago, after reaching a peak in August 2008, the CBS says. Houses have gone down an average of 20% in price since then.

At the same time, the CBS says the number of permits for new houses reached a record low of 26,000 in 2013. This is 30% down on 2012 and 70% down on 2008. Permits for new housing have not been so low since 1953, the CBS says.

Germany next, and a pain in the wallet from TheLocal.de:

Wages fall for first time since crash

Wages in Germany fell by an average of 0.2 percent last year, the first drop since the 2009 economic crisis, the federal statistics office said on Thursday.

The calculation was in terms of the real buying power of wages, allowing for inflation, and the fall bodes ill for efforts to fire up domestic consumption to boost recovery in Europe’s biggest economy.

Germany has relied mainly on exports to drive growth.

Citing preliminary results, the statistics office said that nominal wages in 2013 were up 1.3 percent from the previous year, but that consumer prices rose faster, at 1.5 percent, over the same period.

“One reason for the decline in real wages in 2013 was a decline in bonuses which are frequently performance-related,” said a statement by the Wiesbaden-based agency which is known as Destatis.

Deutsche Welle tracks a booming business:

Arms manufacturer Rheinmetall logs lower profit but higher orders

Germany’s biggest arms maker, Rheinmetall, has defied weak defense spending in Europe in 2013 to surprise investors with higher-than-expected earnings. A massive order backlog for 2014 boosted company shares further.
Panzer

Last year, Rheinmetall’s performance had been stable, with consolidated sales of 4.6 billion euros ($6.3 billion). Before special items, Rheinmettal also boasted an operating profit of 213 million euros, the German defense and automotive industry conglomerate announced as it released figures for its 2013 fiscal year on Wednesday.

Rheinmetall’s 2013 operating result was about 55 million euros lower than in 2012, but higher than forecast for 2013, the Düsseldorf-based company announced. The decrease was the result of restructuring measures to the tune of 86 million euros, as well as a further 15 million euros in expenses for strategic portfolio measures, Rheinmetall aannounced.

Annual sales also fell in 2013, however, with the 2 percent decline mainly being a result of unfavorable exchange rates for the euro.

And a point we’ve made before, from EUbusiness:

Germany has ‘unfair’ edge with low salaries: minister

Germany’s low salaries have given Europe’s biggest economy an “unfair” competitive advantage over its partners and must be corrected, a junior German minister has said.

Michael Roth, state secretary for European Affairs, was commenting on Germany’s record trade surplus, which surged to nearly 200 billion euros ($270 billion) last year, and has seen Berlin placed under EU scrutiny.

He said in an interview with AFP Thursday that imbalances had appeared among EU members and there “was a duty not only for countries running a deficit but also for Germany to reduce them”.

The comments by the Social Democrat politician differ from the stance of Chancellor Angela Merkel’s conservatives, who disagree that Berlin has a problem with its trade surplus despite it consistently exceeding EU limits.

France next, and a uniquely Gallic form of action from Europe Online:

New “boss-napping” incident at a French factory

Workers at a French factory were holding three managers captive for a second day Thursday, after its owners announced that it would be shut down.

The managing director, technical director and financial director of Depalor, a company that produces wood panels in the north-eastern Lorraine region, were being held in an office building.

A trade union representative told France Info radio that the three were barred from leaving until the CEO of parent company Swiss Krono Group came to discuss redundancy terms for the 142 workers.

The incident is the second case of “boss-napping” in France within two months.

And the hidden disclosed, via TheLocal.ch:

France says thousands declare Swiss accounts

The French government says that nearly 16,000 people have declared funds hidden abroad after Switzerland curtailed its vaunted banking secrecy.

France’s Budget Minister Bernard Cazeneuve said on Wednesday that the government was on track to collect 230 million euros ($316 million) from only 2,621 of the cases.

He told the finance committee of the lower house National Assembly that 80 percent of the newly declared accounts were from Switzerland, which has curtailed its banking secrecy traditions under international pressure.

France 24 ponies up:

French government, China’s Dongfeng to invest in Peugeot

Peugeot Citroën, which has been manufacturing automobiles in France for more than 100 years, has agreed to a deal that will see both the French government and Chinese carmaker Dongfeng buy large stakes in the struggling company.

Peugeot announced on Wednesday that its board had approved the agreement, in which the French government and Dongfeng will each invest €800 million ($1.1 billion) in exchange for 14 percent stakes in the company.

The move marks a huge transition for the carmaker, which until now has been controlled by the Peugeot family. Under the agreement, the family’s 25 percent stake and 38 percent of voting rights will now be reduced to equal the French government and Dongfeng’s stakes in the company.

On to Switzerland and a case of resigned to not being resigned from TheLocal.ch:

German professor quits over Swiss ‘xenophobia’

A German professor at the Federal Institute for Technology in Zurich (ETH) has made a splash in the media for quitting his job over the Swiss vote to limit immigration.

Christopher Höcker, who had taught at the university’s Institute for the History and Theory of Architecture since 1999, told his students this week he was stepping down.

The decision by Swiss voters in a February 9th referendum to narrowly support quotas for immigrants from the European Union was the last straw for the 57-year-old German citizen.

“I do not want more exposure to the increasingly xenophobic climate in Switzerland,” Höcker told 20 Minuten newspaper.

TheLocal.ch delays:

EU not compromising but gives Switzerland time

The EU said Thursday it cannot compromise on the principle of freedom of movement but will allow Switzerland time to find a solution after a controversial referendum approved immigration curbs.

“It is a serious . . . not a minor change which we have to assess calmly,” chief operating officer of the EU external affairs service David O’Sullivan said of the referendum outcome.

“Freedom of movement is a fundamental core value” of the European Union and as such is not open for negotiation, O’Sullivan said after talks with Yves Rossier, his counterpart in the Swiss department of foreign affairs.

On to Spain and onto the streets with United Press International:

Spanish marchers protest job cuts, law against protesting

Demonstrators in at least seven Spanish cities have called for an end to a “gagging law” that set large fines for protest marches.

The protesters were joined by factory workers due to be laid off and groups seeking to preserve access to universal healthcare, Think Spain reported. Monday.

The anti-demonstration law, which affects even peaceful protests, calls for fines of $41,000 to $823,000 for anyone staging the marches.

The protests, which drew thousands of supporters in each of the cities, also want the Spanish Parliament to reject a proposed law restricting abortions.

From Spanish Property Insight, the one group of immigrants eagerly sought:

First Chinese property investors get their “Golden Visas”

Chinese nationals investing in property in Spain are starting to get their residency visas, according to Spanish press reports.

A businesswoman from Shanghai who spent €520,000 on flats in Barcelona and Madrid has become one of the first Chinese nationals to get a Spanish residency via the new “Golden Visa” law that offers Spanish residency permits to non-EU nationals in return for real estate investments of €500,000 or more.

She invested in Spanish property via the Emigration Centre at Shanghai International Studies University (SISU), which has a programme to help Chinese nationals invest in residency schemes abroad.

On to Lisbon and yet another austerian misery demanded from the Portugal News:

EU calls for Portugal wages to fall by a further 5%

The European Commission has argued that Portugal needs a further 5% average reduction in wages to ensure a balance between the unemployment rate and wage rates.

Portugal’s government responded by saying that it continued to disagree with that view, arguing that recent increases in exports show that wage adjustment in the private sector has been “sufficient”.

In its report on the 10th regular review of Portugal’s economic and financial assistance programme, released on Thursday, the European Union executive states that “Portugal needs wage moderation sufficient to absorb unemployment” and outlines some estimates.

According to the commission’s calculations, “a reduction of one percentage point in the unemployment rate demands a reduction in real wages of about 2.4%” – which it said means real wages falling 5% if the gap is to be closed between the current jobless rate and that at which wage levels will not lead to new increases in unemployment.

Deutsche Welle takes us to Italy and the latest regime:

Italy swears in its youngest-ever prime minister, Matteo Renzi

  • Italy’s new prime minister, Matteo Renzi, and his cabinet have been sworn into office at a ceremony in Rome. The new government is the youngest in the recent Italian history.

The swearing-in of the prime minister took place at a ceremony in Rome under the auspices of Napolitano.

At 39, Renzi is the youngest-ever person to take the reins in the eurozone’s third largest economy, and his cabinet, with an average age of 47.8 years, is also the most youthful in recent Italian history.

As a result, the government is facing widespread skepticism as to whether it has the political maturity to cope with the challenges currently facing the country.

And the road’s already getting bumpy, via TheLocal.it:

Grillo declares ‘war’ as Berlusconi backs Renzi

Five Star Movement leader Beppe Grillo has lashed out at Matteo Renzi, saying the prime minister designate is “not credible” and declaring a political “war” against the country’s prospective new leader.

Since being nominated for the premiership on Monday, Renzi has been meeting with party leaders to gain the political backing needed to push urgent reforms through parliament.

While some meetings, such as one with Go Italy (Forza Italia) leader Silvio Berlusconi, have gone relatively well, the same cannot be said of Renzi’s meeting with Grillo.

Visible to all by a live internet stream, their meeting appeared to be a dialogue of the deaf, with neither side appearing interested in the other.

ANSA raises an alarm:

Italian recovery slow, growth stalling, say industrialists

  • Urgent need to address competitiveness, demand and bank credit

Italy’s economic recovery is extremely slow and recent data shows that industrial production in the eurozone’s third-largest economy is close to stalling, according to a new report released on Wednesday by Italian employers’ association Confindustria.

“(The recovery is) moving ahead very slowly, almost at a standstill”, Confindustria’s economists said. “These are the harsh facts of the Italian economy”, with employment and industrial production data “confirming that the pick up from the extremely deep hole that has been dug by the recession is extremely slow”.

Fourth-quarter gross domestic product data, which showed the economy expanded 0.1% in the last three months of 2013, was “lower that expected” and “confirms the extreme weakness of the recovery”, according to the report drawn up by Confindustria’s economic research unit which is headed by economist Luca Paolazzi.

And another call for an increasingly mooted move from ANSA:

Re-open cannabis debate, hurt mafia, says ex-health minister

  • Ban on marijuana doesn’t work, says top oncologist Veronesi

It’s time that Italy re-opened the debate on liberalizing marijuana use, to cut out drug traffickers, permit its medical use, while acknowledging the current ban doesn’t work, former health minister Umberto Veronesi said Thursday.

In an opinion article published in La Repubblica newspaper, Veronesi, a prominent oncologist, said that liberalizing the drug would take away power from the mafia and other criminals who now profit greatly from its cultivation and sale.

It would make marijuana more safe for users, including those who need it for pain relief, added Veronesi, whose comments come amid debate about Italy’s illegal-drug laws.

And from New Europe, departures from Bucharest:

Romanian ministers resign

Romania is in the throws of a political crisis after two ministers from the junior party in the ruling coalition resigned.

Finance Minister Daniel Chitoiu and Economy Minister Andrei Gerea, both Liberal Party members, stepped down on Wednesday after Prime Minister Victor Ponta refused to accept the Liberals’ nomination of Klaus Johannis, the popular mayor of Sibiu city, as interior minister. The position, now vacant, was recently held by another Liberal Party official.

Ponta, leader of the Social Democratic Party, will temporarily head the finance portfolio. He named a party colleague as interim economy minister.

After the jump, the latest Greek debacles, unmentionable anxieties in Russia, the latest from Kyiv, an African GMO invasion, the latest turmoil from Latin America, India swings to the right, Thai troubles, worries down under, Chinese alarm bells, Abenomics on the rocks, nucelear woes in the U.S.A., Big Ag hits a roadblock, fracking woes go global, a Spanish snail invasion, and a globl arming cooler. . .plus Fukushimapocalypse Now! Continue reading

Chart of the day: American income inequality


From a new report from the Brookings Institution:

BLOG Inequality

A reminder and a blast from the Nazi past


First, the reminder, via Abby Martin of RT America’s Breaking the Set:

How the CIA Recruited Nazis & Adopted Their Propaganda Methods | Interview with Christopher Simpson

Program notes:

Abby Martin speaks with American University Professor and Author of Blowback: The First Full Account of America’s Recruitment of Nazis, Chris Simpson, about the cooperation between US intelligence and military agencies and Nazi espionage and propaganda experts in the years following World War II.

And the blast from the past, in the form of one of Tom Lehrer’s most memorable tunes about an SS scientist who declared that he didn’t care if he worked for Uncle Sam or Soviet ruler “Uncle Joe” Stalin, declaring, as John Cornwell writes in his excellent Hitler’s Scientists, because “all I wanted was an uncle who was rich.”

Tom Lehrer: Wernher von Braun

Headlines of the day I: EspioPoliCorporoZonal


We’ve been a bit under the weather, so today’s tales form the world of bugs, hacks [digital and political], corporate buccaneering, and military, geographic, and historical crises begins with a panopticon obstruction from the Oakland Tribune:

Oakland council sours on surveillance system

In a sharp reversal, council members made clear early Wednesday they would no longer support moving forward with an intelligence center that has the capacity to conduct surveillance on Oakland streets.

Twice last year, the City Council voted to support the Domain Awareness Center — a joint project with the Port of Oakland that was billed as helping police solve crimes, first responders react to emergencies, and the port protect itself from terrorist attacks.

But after further revelations of federal surveillance programs, threats of lawsuits from First Amendment advocates, and unsatisfactory attempts by city officials to address privacy concerns, a majority of council members said the center should not include any tools that could be used to spy on residents.

The full extent of the council’s reversal won’t be known until it revisits the issue on March 4. Council members did indicate that they would support the center to be used for its original purpose — to safeguard the port from attack.

From USA TODAY, American opinion takes a turn:

Poll: China, not Iran, now USA’s top enemy

  • North Korea rises to second place, with Iran, in Gallup survey. Russia is third.

China, not Iran, is now America’s No. 1 enemy, according to a new Gallup Poll.

The Chinese hold that distinction primarily because Americans have spread their negative views across several perceived threats — Iran (16%), North Korea (16%), Russia (9%), Iraq (7%), Afghanistan (5%) and Syria (3%) — while holding relatively constant in their mistrust of China (20%) over the past few years.

The poll, reported Thursday, also found that a slight majority (52%) sees China’s growing economic power as a “critical threat” to “the vital interests” of the United States in the next decade, while 46% cite such a threat from the country’s military.

From The Guardian, the disappointing but unsurprising decision about the partner of a principal Edward Snowden leak reporter:

David Miranda detention at Heathrow airport was lawful, high court rules

  • Detention of former Guardian journalist’s partner was justified by ‘very pressing’ interests of national security, judges say

Three high court judges have dismissed a challenge that David Miranda, the partner of the former Guardian journalist, Glenn Greenwald, was unlawfully detained under counter-terrorism powers for nine hours at Heathrow airport last August.

The judges accepted that Miranda’s detention and the seizure of computer material was “an indirect interference with press freedom” but said this was justified by legitimate and “very pressing” interests of national security.

The three judges, Lord Justice Laws, Mr Justice Ouseley and Mr Justice Openshaw, concluded that Miranda’s detention at Heathrow under schedule 7 of the Terrorism 2000 Act was lawful, proportionate and did not breach European human rights protections of freedom of expression.

Some consequences, also from The Guardian:

The David Miranda judgment has chilling implications for press freedom, race relations and basic justice

  • The interference of Britains’ security services is shocking, but it’s also vital that we shed light on the murky reality of schedule 7

One person’s freedom fighter may be another’s terrorist, but David Miranda is very clearly neither. Yet he was detained at Heathrow airport for nine hours under schedule 7 of the Terrorism Act 2000. That the high court has now found his detention to be lawful is disappointing to say the least.

If someone travelling as part of journalistic work can be lawfully detained like this – questioned for hours without a lawyer present, his electronic equipment confiscated and cloned and all without the merest suspicion of wrongdoing required – then clearly something has gone wrong with the law.

We’ve been here before. Schedule 7 suffers the same glaring flaws as the old section 44 counter-terrorism power that also allowed stop and search without suspicion. Such laws leave themselves wide open to discriminatory misuse: section 44 never once led to a terrorism conviction but was used to stop people like journalist Pennie Quinton. In a significant victory, Liberty took her case to the European court of human rights and the power was declared unlawful.

Meanwhile, parliamentary questions remain, via the London Telegraph:

Inquiry into phone and email snoopers

  • Sir Anthony May, the Interception of Communications Commissioner, says number of requests last year for access to people’s private data – around 500,000 – was “too large”

Britain’s intelligence and law enforcement agencies are facing an inquiry from Whitehall’s snooping watchdog into whether they are collecting too many private telephone and internet records, The Telegraph can disclose.

The investigation by Sir Anthony May, the Interception of Communications Commissioner, will start this year and comes after he told MPs he was worried that the security services were making too many requests for access to people’s private data.

In evidence to the Home Affairs select committee, Sir Anthony suggested that the number of requests last year – around 500,000 – was “too large”.

Bloomberg reminds:

NSA Official Warned About Threat 17 Years Before Snowden

Seventeen years before Edward Snowden began releasing secret documents on U.S. electronic spying, an analyst with the National Security Agency foresaw just such a threat.

“In their quest to benefit from the great advantages of networked computer systems, the U.S. military and intelligence communities have put almost all of their classified information ‘eggs’ into one very precarious basket: computer system administrators,” the unidentified analyst wrote in a 1996 special edition of Cryptologic Quarterly, an NSA magazine.

Despite the warning, the NSA remained vulnerable. When Snowden’s first disclosures became public last year, some of the agencies’ computers were still equipped with USB ports where thumb drives could be used to copy files, according to a National Public Radio report in September.

Snowden was a systems analyst working as a contractor with Booz Allen Hamilton Holding Corp. (BAH) at an NSA regional signals intelligence facility in Hawaii when he exploited his administrative access to copy thousands of top-secret documents before fleeing to Hong Kong and then Moscow.

The McClatchy Washington Bureau has a deal:

Online company hawking Snowden action figure

He’s been called a low-down traitor and a noble whistleblower, and now there’s a new label for fugitive NSA leaker Edward Snowden: action figure.

An Oregon-based company, Thatsmyface.com, is offering Snowden’s “lifelike head mounted on a 12-inch fully-articulated action figure body with detailed pre-fitted clothes.” Clothing options include casual, business suit or “Indiana Jones.” Perhaps a spinoff line will include a Moscow airport-terminal play set?

Each doll is $99, with proceeds reportedly going to Freedom of the Press Foundation. (The foundation told news agencies that it hadn’t been contacted about the project.)

The website is here, including this video of the Snowden doll alongside their Julian Assange action figure:

And another pair of small victories from the ACLU Blog of Rights:

State High Courts Realize It’s Not 1986 Anymore, Broaden Privacy Protections

Technology in the digital age has changed the way the government conducts surveillance against targets, and the law must change accordingly. So ruled two separate state supreme courts in decisions that take on the so-called ‘third-party doctrine,’ an outdated legal precedent that serves as the foundation for the federal government’s defense of NSA and FBI bulk records surveillance programs.

In two state supreme court rulings published Tuesday, jurists in Massachusetts and Hawaii created new space for the expansion of privacy rights under their state constitutions. The Hawaiian justices found that, as technology changes, the law must change with it—and state courts have a role to play in pushing legislatures and federal courts to adapt more quickly. Massachusetts’ high court did just that, by limiting the government’s authority to obtain without warrants information held about us by third parties. Specifically, Massachusetts justices ruled 5-2 that police must obtain a probable cause warrant in order to obtain two weeks or more of cell site location information from our telecommunications companies.

The Intercept [new venue of Greenwald & Co.] lays the blame:

Judge Tosses Muslim Spying Suit Against NYPD, Says Any Damage Was Caused by Reporters Who Exposed It

A federal judge in Newark has thrown out a lawsuit against the New York Police Department for spying on New Jersey Muslims, saying if anyone was at fault, it was the Associated Press for telling people about it.

In his ruling Thursday, U.S. District Court Judge William J. Martini simultaneously demonstrated the willingness of the judiciary to give law enforcement alarming latitude in the name of fighting terror, greenlighted the targeting of Muslims based solely on their religious beliefs, and blamed the media for upsetting people by telling them what their government was doing.

The NYPD’s clandestine spying on daily life in Muslim communities in the region — with no probable cause, and nothing to show for it — was exposed in a Pulitzer-Prize winning series of stories by the AP. The stories described infiltration and surveillance of at least 20 mosques, 14 restaurants, 11 retail stores, two grade schools, and two Muslim student associations in New Jersey alone.

Well, gollleeee! From the Washington Post:

U.S. intelligence agencies can’t justify why they use so many contractors

In the wake of last year’s NSA revelations, many agencies have been reviewing their contracting policies. But few people have a good grasp on just how many contractors the government employs. What’s worse, the country’s eight civilian intelligence agencies often can’t sufficiently explain what they use those contractors for, according to a Government Accountability Office report.

Every year, the Office of the Director of National Intelligence is supposed to count how many contractors serve the intelligence community (IC). Due to differences in the way intelligence agencies define and assess their workers, however, the data are inconsistent and in some places incomplete. Out of hundreds of agency records, for example, GAO found that almost a fifth lacked enough paperwork to prove how much a contractor was paid. Another fifth of the records were found to have either over-reported or under-reported the actual cost of the contract work.

But the GAO reserves its harshest judgment for the agencies that couldn’t fully explain why they resorted to contractors in the first place.

From Deutsche Welle, attempting the ol’ pot/kettle maneuver:

‘Not shocked if Germany spied on us’

Americans would not be shocked if they found out that German intelligence services monitored them, former CIA Director John McLaughlin tells DW. He also explains why he feels mass surveillance is justified.

RT goes for the help:

No spying on friends: NSA bugs Merkel aides instead of chancellor

In the wake of President Obama’s promise to stop spying on German Chancellor Angela Merkel, the US intelligence has switched its attention to her top government officials, a German newspaper reported.

Washington’s relations with Germany were strained last year after revelations that the US National Security Agency (NSA) was conducting mass surveillance in Germany and even tapped the mobile phone of Chancellor Merkel.

Facing the German outrage, President Barack Obama pledged that the US would stop spying on the leader of the European country, which is among the closest and most powerful allies of America.

After the promise was made, the NSA has stepped up surveillance of senior German officials, German newspaper Bild am Sonntag (BamS) reported on Sunday.

Seeking a change with The Hill:

Dems press Holder on secret FBI letters

Two House Democrats are calling on Attorney General Eric Holder to make changes to secret letters that the FBI uses to get information.

In a letter on Wednesday, the lawmakers demanded answers about the FBI’s National Security Letters, which do not require a court order and require communications companies and financial institutions to turn over details about their customers.

“This is deeply troubling and, therefore, addressing the proper use of NSLs must be part of any meaningful reform of government surveillance authorities,” Reps. Jerrold Nadler (D-N.Y.) and David Cicilline (D-R.I.) said in a joint statement accompanying the letter.

“We look forward to working with the Administration as we find a path forward on this issue.

Aviation Week fesses up:

USAF Space Chief Outs Classified Spy Sat Program

The U.S. Air Force is planning to launch two new and previously classified space situational awareness satellites into geosynchronous orbit this year, according to Gen. William Shelton, who leads Air Force Space Command.

The spacecraft were developed covertly by the Air Force and Orbital Sciences under the Geosynchronous Space Situational Awareness Program (GSAP), according to service officials.

The first two spacecraft will be boosted this year with two more to follow in 2016 to prevent a gap in surveillance on activities in the geosynchronous belt, Shelton said at the annual Air Force Association Air Warfare Symposium in Orlando. This is where commercial satellite communications are based, as well as critical national security assets such as the Space-Based Infrared System (Sbirs) early missile warning system and Advanced Extremely High Frequency (AEHF) constellation designed to provide jam-proof communications for the president even during a nuclear event.

“One cheap shot” against Sbirs or AEHF would be “devastating” to the Pentagon’s capabilities, Shelton said of a potential anti-satellite attack.

From the London Daily Mail, guess who’s listening:

Head of NSA’s Korea division charged with beating adopted son, three, to death. But he INSISTS the boy’s injuries were suffered in fall and his wife believes him

  • Brian O’Callaghan and his wife adopted the boy from Korea in October
  • O’Callaghan told police the boy fell in the shower two days before he died
  • Authorities describe the boy’s injuries as being ‘from head to toe’
  • Investigators believe O’Callaghan beat the boy while his wife was out of town
  • The autopsy and other medical tests offer conflicting causes of the boy’s death
  • O’Callaghan is an Iraq War veteran who now works as the NSA’s Korea division chief
  • O’Callaghan’s wife and other families say he is incapable of hurting a child

The National Security Agency’s Korea division chief has been charged with murder in the alleged beating death of his 3-year-old son who he and his wife adopted from Korea just months before his tragic death.

Brian O’Callaghan, a decorated Iraq War veteran who was awarded the Marine Corps Achievement Medal for his part in a gun battle that helped lead to the rescue of captured soldier Jessica Lynch, is accused of beating his adopted son, Hyunsu, so badly that he ultimately died two days after the alleged beating.

From BBC News, a busted Murdoch operative with a friend in a very high place:

Phone-hacking trial: Blair ‘advised Brooks before arrest’

Tony Blair gave advice to newspaper executive Rebekah Brooks on handling the phone-hacking scandal six days before her arrest, a court has heard.

The court heard Mrs Brooks spoke to the former prime minister and passed on what he had said to James Murdoch, then News International executive chairman.

In an email, she said Mr Blair had said he was “available” to her, James and Rupert Murdoch as an “unofficial adviser”, the Old Bailey heard.

Mrs Brooks denies any wrongdoing.

From Ars Technica, hack attack:

Iranians hacked Navy network for four months? Not a surprise.

  • NMCI, now being phased out, is the world’s biggest intranet, and its biggest target.

In 2012, Iranian hackers managed to penetrate the US Navy’s unclassified administrative network, the Navy Marine Corps Intranet. While the attack was disclosed last September, the scale of it was not—the attack gave hackers access to the NMCI for nearly four months, according to an updated report by The Wall Street Journal.

Vice Adm. Michael Rogers, who is now President Barack Obama’s choice to replace Gen. Keith Alexander as both NSA director and commander of the US Cyber Command, led the US Fleet Cyber Command when the attack came to light. Rogers’ response to the attack may be a factor in his confirmation hearings.

Iranian hackers attacked NMCI in August of 2012, using a vulnerability in a public-facing website to gain initial access to the network. Because of a flaw in the security of the network the server was hosted on, attackers were able to use the server to gain access to NMCI’s private network and spread to other systems. While the vulnerability that allowed the attackers to gain access in the first place was discovered and closed by October, spyware installed by the attackers remained in place until November.

RT raises the bar:

German telecom firm to roll out text, voice encryption app

Deutsche Telekom plans to launch an app for smartphones that encrypts voice and text messages. The move is the latest step taken by the firm to address users’ privacy concerns following NSA whistleblower, Edward Snowden’s, mass surveillance revelations.

The cloud-based app will encrypt each voice or text exchange between two devices using a unique code, Reuters cites Deutsche Telekom as saying in a statement.

The firm will roll the app out at Cebit – the world’s largest and most international computer expo – in Hanover, Germany, next month. It remains unclear when it will be available for download, though versions for Android smartphones will be released first, followed by a version for iOS smartphones. The product will be made available to business customers.

And Xinhua calls for a deal:

EU, Brazil to enhance cyber security cooperation

The European Union and Brazil have agreed to launch a new EU-Brazil dialogue on international cyber policy at the annual EU-Brazil summit held here on Monday.

Addressing a press conference, President of the European Council Herman Van Rompuy said both the EU and Brazil share the common interest of protecting a “free and open” Internet, which has spurred tremendous economic and social progress.

“At the same time, we will continue to enhance data protection and global privacy standards,” he said.

EU and Brazil have agreed to have the first meeting on cyber security take place during the conference on Internet governance, which Brazil will host in Sao Paulo on April 23-24.

From Sky News, recycling:

US Airlines Warned Over Possible Shoe Bombs

Concerns are raised for the second time in less than three weeks over possible attempts to smuggle explosives onto planes.

Airlines flying to the United States have been warned to be on alert for explosives hidden in shoes.

It is the second time in less than three weeks the US government has raised concerns over possible attempts to smuggle explosives onto commercial jetliners.

The Department of Homeland Security (DHS) declined to discuss specific details about the warning but said it regularly shares relevant information with domestic and international partners.

ANSA keeps the secret keepers safe:

Italian spy agency officials acquitted in CIA snatch

  • State secrecy invoked in extraordinary rendition case

Italy’s supreme court on Monday acquitted the former head and the No.2 of the Italian secret service agency, Nicolo’ Pollari and Marco Mancini, as well as three agents, for involvement in the CIA’s extraordinary rendition of Muslim cleric Hassan Mustafa Omar Nasr from Milan in 2003.

The Cassation Court said sentences could not be upheld due to State secrecy.

Pollari and Mancini were respectively appealing a 10-year and a nine-year sentence at a lower court for allowing the CIA to commit “a grave violation of national sovereignty” when they snatched Nasr, also known as Abu Omar, an Islamist suspected of recruiting jihadi fighters.

And from Al Jazeera America, the expected:

Turkey increases control of Internet

  • President Abdullah Gul signs law allowing telecom authority to block websites without a court order

Turkish President Abdullah Gul approved a new law Tuesday which critics said aims to increase government controls over the Internet.

The legislation, approved by Parliament earlier this month, allows the telecommunications authority to block websites without a court decision. It also requires Internet providers to keep records of users’ activities for two years and make them available to authorities.

The move is seen by critics of Prime Minister Tayyip Erdogan’s critics as an authoritarian response to a corruption inquiry shaking his government and a bid to stop leaks from circulating online.

SecurityWeek spots another player:

US Man Sues Ethiopian Government for Spyware Infection

  • US Man Sues Ethiopia for Cyber Snooping

A lawsuit filed on Tuesday accuses Ethiopia of infecting a US man’s computer with spyware as part of a campaign to gather intelligence about those critical of the government.

“We have clear evidence of a foreign government secretly infiltrating an American’s computer in America, listening to his calls and obtaining access to a wide swath of his private life,” said attorney Nate Cardozo of Internet rights group Electronic Freedom Foundation.

“The current Ethiopian government has a well-documented history of human rights violations against anyone it sees as political opponents.”

And from thinkSPAIN, the game of zones, European style:

UK to lodge formal complaint against Spain following ‘illegal incursion’ into Gibraltarian waters

BRITISH Foreign Office officials have announced they will make a complaint ‘to the highest-possible authority’ after a fresh incursion into Gibraltar’s waters by a Spanish Naval ship.

The UK’s Royal Navy was carrying out military sky-diving exercises in the sea off the Rock on Tuesday when the Spanish ship SPS Vigia approached the area, heightening the tension between London and Madrid over the concrete blocks placed in the sea in Gibraltarian territory to create an artificial reef, which the Spanish government insists are within the seas belonging to the Bay of Algeciras (Cádiz).

The Royal Navy continued with its parachuting practice despite the incursion, says the Foreign Office, which says it intends to present a ‘formal protest’ at the ‘highest level’ against the Spanish government.

After the jump, the latest on the rapidly escalating Asian military escalation, border-claiming, historical, revanchist, and other security crises — plus social media lie detection, punishing proof of insecurity, felonious pseudospooking sexpionage, an Internet ban defeated, and a very serious worm in the Apple. . . Continue reading

Business as usual: A little Dutch hypocrisy


From the television arm of Holland’s Katholieke Radio Omroep [Catholic Radio Broadcasting], a nice little takedown of corporate profiteering.

While esnl’s a cannabis-friendly blog, much of our journalism career has been spent tracking corporate shenanigans and organized crime [and, yes, the two are increasingly synonymous these days].

So when we caught this video we were delighted at the expose of corporate connivance with a large and still-illegal industry, an enterprise that continued until it was finally derailed in part because of the work of journalists.

Via Journeyman Pictures:

How Multinational Philips Profited From Illegal Cannabis Farms

Program notes:

Corporate Cannabis: The corporation that made millions from the illegal drug trade

When Philips, a huge multinational company, started supplying lamps to the cannabis industry it wasn’t breaking the law. Growing is illegal, supplying lamps isn’t. But it wasupporting a €1bn criminal network.

“I think his revenues are €5 to 6 million on Philips products alone. Philips is THE brand in the industry”, an insider says of the intermediary that Philips sold their lamps to the cannabis industry through. Nothing was put on paper with this intermediary and they were careful to filter their operations through a wholesaler, but his lawyer attests to his partnership with Philips and shows us an email in which Philips gave him advice on how the lamps were best used for growing cannabis.

As criminologist Frank Bovenkerk points out, while it may not have been illegal, the morals are certainly questionable. “It is absolutely clear that a number of serious criminal organizations are dealing with this business. Very unpleasant people.” Now that the law is changing to outlaw the supply of lamps to the growing industry, Philips has changed its policy and left its intermediary badly in the lurch, but many say it is too little too late. “They’re in a position that is conductive to crime, often organised crime.” A fascinating look at how large companies make money at the fringes of the law and a warning of the kind of industries that can grow up around Cannabis legalisation.

A transcript is posted online here.

Shareholder-owned corporations are, by law, immoral — potentially immortal creations endowed with a single prime directive: The generation of maximum profits for investors.

Banks have fallen over each other to attract the wealth of drug dealers, so why shouldn’t one of world’s leading suppliers of lighting?

And it might be argued quite reasonably that Philips is doing a lot less harm than those corporations which, will full government approval, sell the instruments of mass murder and social control. . .