Category Archives: Asia

Headlines of the day II: EconoEuroEcoFukunomia


From the worlds of politics, economics, and environmental news, today’s collection begins with a propitiatory sacrifice from Jiji Press:

Obama Urged Not to Sign TPP Unless Japan Bans Dolphin Hunting

A group of celebrities and activists in the United States are urging President Barack Obama to refuse to sign a proposed international trade deal unless Japan bans dolphin hunting.

In a letter dated Wednesday, hip-hop producer Russell Simmons asked U.S. Ambassador to Japan Caroline Kennedy to urge Obama not to sign the Trans-Pacific Partnership pact unless Japan bans the hunt.

Simmons’ effort draws support from about 40 celebrities and activists including film director Oliver Stone and actress Cameron Diaz.

Bloomberg limits the bubble:

Home Prices Rose in Fewer U.S. Markets in Fourth Quarter

Prices for single-family homes rose in 73 percent of U.S. cities in the fourth quarter, fewer than in the previous three months, as surging values in the past two years started to reduce affordability.

The median transaction price for an existing home climbed from a year earlier in 119 of 164 metropolitan areas measured, the National Association of Realtors said in a report today. In the third quarter, 88 percent of markets had increases.

While tight inventories and improving employment are bolstering the housing recovery, home-price gains are poised to decelerate as an increase in mortgage rates from record lows cuts into affordability. Values have been rising faster than incomes, particularly in the West, the Realtors group said.

Businessweek takes a flier:

Yes, There’s a Pilot Shortage: Salaries Start at $21,000

The regional side of the U.S. airline industry has long been a fiercely competitive arena in which the big airlines auction large sections of their flight schedules to the lowest bidder. That’s put pressure on wages: The starting salary for a first officer at a regional airline is a little more than $21,000 per year—about $40,000 lower than the same job at Delta (DAL) and United (UAL), according to the Air Line Pilots Association, the largest U.S. pilot union.

And the stingy pay, in turn, exacerbates the pilot shortage. Not only does it make pilot jobs less appealing, but the small salaries also combine with the more onerous federal training rules to put many new pilots deep in debt. Paying for the necessary hours of training flights before getting a first job can cost more than $100,000.

“There may be a shortage of qualified pilots who are willing to fly for U.S. airlines because of the industry’s recent history of instability, poor pay, and benefits,” ALPA President Lee Moak said last week in a statement that aimed to refute the “myth” of such a shortage. The union says that Emirates Airlines pays new first officers $82,000, “plus a housing allowance and other extraordinary benefits,” and that thousands of U.S. pilots on furlough and working abroad are “eager to return to U.S. airline cockpits—under the right conditions.”

From In These Times, Tea Party pols:

When the Boss Wants a Union, But the GOP Says ‘No’

Volkswagen is willing to let employees at its Tennessee plant unionize, but Republicans are stiff in their opposition.

Republicans are blasting VW (actually criticizing a corporation!) because VW is cooperating with an attempt by the United Auto Workers to organize the German automaker’s Chattanooga, Tenn., assembly plant. The workers at VW’s German assembly plants are organized and paid twice the wage of the Chattanooga workers.

VW wants to establish works councils at its Chattanooga plant, just like those it has in Germany. In Europe, these groups of white- and blue-collar workers collaborate on issues such as plant rules, work hours and vacations. In VW’s experience, cooperating with employees through these councils increases productivity and profitability.

Because the councils discuss labor issues such as work hours, VW and the UAW have determined that to legally establish them in Chattanooga, the plant must be unionized.

This is intolerable to the GOP. Two of Tennessee’s most powerful Republicans, Gov. Bill Haslam and U.S. Sen. Bob Corker, insist they know how to run an auto company better than VW. Despite this successful international auto company’s actual business experience with work councils, these GOP politicians say that they know what’s best, that they just know unionization won’t be good for VW.

Al Jazeera America prolongs:

California gets two more years to ease prison overcrowding

  • Judges’ ruling sets compliance officer who will release inmates early if state fails to ease problem

Federal judges on Monday gave California two more years to meet a court-ordered prison population cap, the latest step in a long-running lawsuit aimed at improving inmate medical care.

In doing so, the judges said they would appoint a compliance officer who will release inmates early if the state fails to meet interim benchmarks or the final goal.

The judges said the delays have cost taxpayers money while causing inmates to needlessly suffer. Judges had previously extended the deadline in December.

The order from the three-judge panel delayed an April deadline to reduce the prison population to about 112,000 inmates. California remains more than 5,000 inmates over a limit set by the courts, even though the state has built more prison space and used some private cells.

The Hill anchors the baby:

Chinese ‘birth tourism’ booming in US territory

A growing number of pregnant Chinese women are having their babies in the U.S. territory of Saipan, automatically giving the children American citizenship, according to the region’s congressman.

Del. Gregorio Sablan (D) represents Saipan and the rest of the Northern Mariana Islands in Congress. The U.S. territory is in the Pacific Ocean, roughly 3,700 miles west of Honolulu and a four-hour flight from China.

Sablan said in an ABC News report that he has reached out to the Department of Homeland Security to look into the “birth tourism” situation. “We want to fix this and we want to make sure that this small problem remains very small,” Sablan said.

Heading north of the border for another “free trade” travesty from EurActiv:

EU-Canada free trade deal ‘opens door to environmental lawsuits’

Multinationals will have wide-ranging powers to sue EU states that enact health or environmental laws breaching their “legitimate expectations” of profit, according to a leaked ‘investment chapter’ from the Canada-EU free trade agreement (CETA), which was signed last November.

A separate ‘nature and scope’ document for EU-US free trade talks, which EurActiv has seen, makes clear that similar parameters are foreseen for a Transatlantic Trade and Investment Partnership (TTIP) agreement.

The CETA investment chapter proposes a definition of ‘fair and equitable treatment’ (FET) for investors which has sparked multi-million dollar lawsuits, such as one by Lone Pine challenging a shale drilling ban by the Canadian state of Quebec.

EU officials have reportedly not challenged the authenticity of the leaked document, which was published online by the Trade Justice Network, although they were unavailable for comment on the issue.

Pronouncement from a high place via Xinhua:

OECD index shows growth recovery in major economies

The latest composite leading indicators (CLIs) of the Organization for Economic Cooperation and Development (OECD) are pointing to an improving economic outlook in major advanced economies, said the Paris-based think tank on Monday.

The CLIs, designed to anticipate turning points in economic activity relative to trend, stood at 100.9 for the OECD area, up by 0.1 percentage compared to last month, while the oulook of seven major economies pointed to a firming growth.

In the euro area, the indicators projected the single-currency bloc to witness positive change in momentum and reached a ratio of 101.1 at the end of 2013 compared to November’s 100.9.

As for France and Germany, Europe’s main powerhouses, the OECD report expected economic activities to gain ground. Their ratios were above the long term average rate of 100, with respectively a ratio of 100.5 and 100.8 for December after 100.3 and 100.7 reported a month earlier.

But The Guardian adds a qualification:

OECD admits overstating growth forecasts amid eurozone crisis and global crash

Biggest forecasting errors were made when looking at the prospects for the next year, rather than the current year, Organisation for Economic Co-operation and Development said

A failure to spot the severity of the eurozone crisis and the impact of the meltdown of the global banking system led to consistent forecasting errors in recent years, the Organisation for Economic Co-operation and Development admitted on Tuesday.

The Paris-based organisation said it repeatedly overestimated growth prospects for countries around the world between 2007 and 2012. The OECD revised down forecasts at the onset of the financial crisis, but by an insufficient degree, it said.

“Forecasts were revised down consistently and very rapidly when the financial crisis erupted, but growth out-turns nonetheless still proved substantially weaker than had been projected,” it said in a paper exploring its forecasting record in recent years.

The biggest forecasting errors were made when looking at the prospects for the next year, rather than the current year.

On to Europe with an alarm from the London Telegraph:

ECB paralysed by German court decision as deflation threatens

  • The ‘thunderbolt’ ruling on eurozone rescue policies by Germany’s top court marks a serious escalation of Europe’s governance crisis

Last week’s ‘thunderbolt’ ruling on eurozone rescue policies by Germany’s top court marks a serious escalation of Europe’s governance crisis and may ultimately force Germany to withdraw from the euro, the country’s most influential magazine has warned.

A sweeping report by Der Spiegel said the court ruling amounts to a full-blown showdown between Germany and the European Central Bank over the methods to shore up southern Europe’s debt markets.

“It is nothing less than a final reckoning with the crisis-management strategy pursued by the ECB. The German justices insist that the German constitution sets limits on the ECB’s crisis strategy. In a worst-case scenario, the Court could forbid Berlin from contributing to efforts to save the euro or even force Germany to leave the currency zone entirely,” it said.

The warning came as market analysts began to see the darker implications of the ruling, which was initially seen as a green light for the ECB’s bond operations.

From the London Telegraph again, a contrarian take:

Schaeuble: German court decision no threat to eurozone

  • The German finance minister plays down damage of ruling that powerful ECB tool could be unconstitutional

Curbing the European Central Bank’s (ECB) powers to do “whatever it takes” to save the eurozone will not harm the single currency, the German finance minister has claimed.

Wolfgang Schaeuble said that although the ECB’s most effective tool for calming the eurozone debt markets, unlimited bond buying, could be ruled illegal by the European Court of Justice, that financial markets are now confident that the eurozone will remain intact.

“I think the return of financial market confidence in the stability of the euro has been due not only, not even primarily, to the ECB’s (unlimited bond buying) announcement,” said Mr Schaeuble in an interview with Reuters.

New Europe debunks:

Mobile EU citizens are mainly young people looking for job opportunities

  • Mobile EU citizens are often overqualified for the jobs they take up and may be paid less

A new study on the integration of mobile EU citizens was published today by the European Commission.

The study, which was carried out by Ernst and Young, focused on six European cities, chosen for the multinational composition of their population. The cities were Barcelona, Dublin, Hamburg, Lille, Prague and Turin. According to the study, most of the mobile EU citizens are young people looking for job opportunities.

The study showed that the the inflow of younger, working age EU citizens has had a positive economic impact in the cities under examination. For example in Turin, a local evaluation indicated that tax revenues from foreigners on the whole brought a net benefit of €1.5 billion to national public finances. Moreover, the newcomers have helped fill gaps in local labour markets, contributed to growth in new sectors and have helped balance out ageing populations. However, the study found that mobile EU citizens are often overqualified for the jobs they take up and may be paid less and at the same time do not always benefit from the same access to housing and education.

On to Britain and ongoing misery from Sky News:

UK Floods Could Last Months, Scientist Warns

Some 1.6 million properties across Britain are now at risk of groundwater flooding and there is no end in sight, an expert says.

Scientists have told Sky News that groundwater levels are now so high that parts of Britain face a serious risk of flooding for weeks or even months to come.

Andy McKenzie, a groundwater scientist at the British Geological Survey, told Sky News that even if the rain stopped today, so much water is soaking through the soil that levels are likely to keep rising for another two months.

The risk of flooding could remain high until May, he said.

Figures exclusively revealed to Sky News show that boreholes used to measure the height of the water table are overflowing in many areas, with the highest levels ever recorded.

The Guardian covers austerian pluvial accounting:

Government raised bar for funding of flood defence schemes

  • Defra wanted to see an average of £8 of damage avoided for every £1 it would spend on schemes

Coalition ministers made it more difficult for flood defence schemes to get funding by introducing tougher targets demanding 60% more “benefits” for every pound spent on protection, it has emerged.

Under the new rules brought in three years ago, the Department for Environment Food And Rural Affairs (Defra) wanted to see an average of £8 of damage avoided for every £1 they would spend on schemes.

Previously, projects were simply expected to deliver more than £1 of damage avoided for every £1 spent, with an average across all schemes of £5 of damage avoided for every £1 spent.

On hand giveth whilst the other taketh away, via Reuters:

Barclays to cut 12,000 jobs, pays bigger bonuses

Barclays said it would axe up to 12,000 jobs this year even as it raised bonuses for investment bankers, prompting fury among politicians and unions who said it had not learned the lessons of the financial crisis.

Britain’s third-biggest bank said up to 9 percent of employees could go, including 7,000 in Britain, as it tries to lower costs. The cuts are not concentrated in any one business area.

It said it paid 2.4 billion pounds ($3.9 billion) in incentive awards last year, raising bonuses at the investment bank by 13 percent despite a slump in its profits. The average bonus for the investment bank’s 26,200 staff was 60,100 pounds.

Critics of the bonus hike said it showed Britain’s biggest banks were still failing to heed the lessons of a financial crisis caused by dangerous risk taking and excessive pay.

The Independent calls the shots:

Revealed: Big Pharma’s hidden links to NHS policy, with senior MPs saying medical industry uses ‘wealth to influence government’

NHS bosses allowed a lobbying company working for some of the world’s biggest drugs and medical equipment firms to write a draft report which could help shape future health policy. NHS England commissioned a group called the Specialised Healthcare Alliance (SHCA) to consult with patients’ groups, charities and health organisations and produce a report feeding into its future five-year strategy for commissioning £12bn of services.

But the SHCA has confirmed to The Independent that it is entirely funded by commercial “members”. Its director, John Murray, is also a lobbyist whose company lists some of the world’s biggest drug and medical device firms as clients.

Mr Murray put his name on a foreword to the NHS England document along with James Palmer, the clinical director of specialised services at NHS England, with whom he admits he has had “many meetings [on] a wide range of organisations and interests”.

The findings raise significant questions about links between the lobbying industry and NHS England – a quango set up to run the NHS under the Government’s health reforms.

Hints of Banksters Behaving Badly from The Guardian:

Bank of England launches inquiry into forex manipulation claims

  • Senior currency trader says Bank officials condoned information sharing between traders under investigation

The Bank of England has launched an internal inquiry into allegations that its officials endorsed sharing of information between traders in the foreign exchange market, the central bank’s deputy governor told MPs.

The inquiry will examine claims that at a meeting between Bank officials and senior currency traders last April the officials said it was permissible for traders in different banks to share information about clients’ positions ahead of the setting of a benchmark rate in the foreign exchange market.

On to Iceland and a crisis resurrection from DutchNews.nl:

Icesave dispute reopened, Dutch and British demand €3.5bn

The Dutch and British authorities have reopened their dispute with Iceland over the bankruptcy of online bank Icesave by filing claims for up to €3.5bn from the Icelandic bank guarantee fund.

The Netherlands and Britain chose to compensate savers who lost billions when Iceland bank Landsbanki collapsed in 2008 from their own domestic guarantee schemes. At the time, this was seen as a sort of loan to Iceland.

However, last year a European court ruled Iceland itself was not responsible for repaying the cash.

Iceland again, and misbehavior in high places from the Reykjavík Grapevine:

Protest At Interior Ministry

Three organisations will be holding simultaneous protests at the Ministry of the Interior tomorrow at noon, demanding the minister’s resignation.

The Alda – Association for Sustainability and Democracy, activist organisation Attac and refugee and immigration rights group No Borders have all planned protests in front of the ministry at noon tomorrow. These protests call for the resignation of Minister of the Interior Hanna Birna Kristjánsdóttir, whose ministry is being investigated by the police for allegedly leaking a memo which falsely impugned on Nigerian asylum seeker Tony Omos and the mother of his child, Evelyn Glory Joseph. Lawyers for both Tony and Evelyn filed charges against the ministry, including breach of confidentiality, slander, and abuse of public office.

Alda has called the ministry’s handling of the case as being “characterised by silence, arrogance, and contradictory statements”. No Borders has taken matters further, saying that Tony Omos’ asylum case should be re-introduced for consideration in light of the unfair treatment he has received.

Norway next, with a familiar theme from EUbusiness:

Norway’s populists demand immigration referendum

Days after the Swiss narrowly voted to curb immigration from the EU, Norway’s populist right-wing party on Tuesday demanded a similar referendum in the prosperous Nordic country.

“I won’t take a stance on a quota system like the one the Swiss people have voted for,” said Mazyar Keshvari, immigration spokesman for the Progress Party, a member of the ruling coalition which wants a more restrictive immigration policy.

“But the idea of a referendum is interesting and Norway should also organise a referendum on immigration. I’m completely certain that a majority wants to tighten up” the policy.

Norway is not a member of the EU but is included in the European Economic Area and the Schengen Area which allows relatively unrestricted movement of citizens.

Spain next, and departures from El País:

Is the crisis fueling an exodus?

Studies are trying to pinpoint just how many people are leaving Spain due to rampant unemployment

What if the Spanish exodus caused by the crisis was not quite as massive as we have been led to believe? This is the question that drives a recent study by Carmen González Enríquez, of the Elcano Royal Institute think-tank. Based on information gathered from Spanish consulates, the researcher notes that only two percent of nationals living abroad are Spaniards who left because of the crisis. That is just 39,912 people.

But what if it was the other way around, and we were in fact underestimating the extent of the trend? This is what Amparo González Ferrer, a sociologist and demographics specialist at the CSIC National Research Council, claims. She says that the number of émigrés who left the country between 2008 and 2012 — rather than the number of Spaniards living abroad — is closer to 700,000 than the official figure of 225,000. That Spain is losing population to emigration is unquestionable in view of the data. The latest census report by the National Statistics Institute (INE), containing data up to January 2013, shows a drop of 135,538 people during 2012, taking the population down to 47,129,783.

But how many Spaniards are actually leaving due to the economic situation? There is a debate among the scientific community because of the absence of a statistical mechanism that can quickly and efficiently register the departure of nationals.

And a blow to Iberian Brits from TheLocal.es:

Spain’s UK expats to lose free NHS health care

Thousands of British expats who have taken early retirement in Spain will now have to get private health insurance following the UK government’s decision to scrap free access to their local Spanish health care system.

The change in legislation, set to be implemented on April 1st, will affect only those who haven’t already completed a Social Security residual form S1 before leaving the UK.

However, once their current form comes to an end, jobless UK expats in Spain are likely to also be obliged to buy private medical insurance.

Up to now, unemployed Brits in Spain and other EEA countries who were under the age of 65 were able to pass on their health care costs to the UK Treasury.

And a case of Royals Behaving Badly from El País:

Prosecutor seeks 19 years in prison for princess’s husband Urdangarin

  • More than half of Nóos case suspects may not face charges
  • Infanta Cristina could be required to pay 600,000 in civil liability
  • Princess Cristina will have to return 600,000 euros if husband found guilty

After Princess Cristina’s unprecedented testimony before an investigating judge in Palma de Mallorca on Saturday, the anticorruption prosecutor in the Nóos investigation, Pedro Horrach, maintains that the infanta should not be implicated in the business dealings of her husband, former Olympic handball medalist Iñaki Urdangarin, and has also stated that over half of the 40 official suspects in the case should not face charges.

However, the prosecutor has now asked that Urdangarin, the Duke of Palma, should face a 19-year prison sentence and his former business partner Diego Torres 15 years, both on charges of embezzlement, falsifying documents, tax fraud and other financial crimes. Torres’ brother-in-law and financial advisor, Miguel Tejeiro, who designed the shell companies and tax fiddles though which Torres and Urdangarin allegedly funneled millions of euros of public money, also faces 19 years if found guilty.

On to Italy and a low rating from ANSAmed:

Italy bottom in EU for labour-cost competitiveness

  • 100 euros of labout costs generated 126% of added value in 2010

Italy is the bottom of the European Union when it comes to the competitiveness of labour costs, national statistics agency Istat said in a report Tuesday. Istat said every 100 euros an Italian business spent on labour costs in 2010, the most recent year in which there is comparative data for the rest of the EU, generated added value of 126%.

This was lowest in the EU and way behind the figure of 211.7% for Romania. Istat said that labour-cost competitiveness improved in 2011, with every 100 euros of labour costs generating 128.5% of added value.(ANSAmed).

Bunga Bunga politics from Deutsche Welle:

Berlusconi back on trial for political corruption

Italy’s scandal-ridden former premier Silvio Berlusconi is back in court yet again. This time he is facing charges of having bribed an opposition politician to swap sides.

Silvio Berlusconi’s latest trial opened in the southern Italian city of Naples on Tuesday, with the former premier facing charges of having used bribery to persuade a senator to join his party in 2006.

Berlusconi was not at Tuesday’s hearing and was not obliged to attend under Italian law.

He is accused of giving a 3-million-euro ($4.1-million) bribe to senator Sergio De Gregorio to entice him into leaving the anti-corruption Italy of Values party to join Berlusconi’s own People of Freedom party. The prosecution sees the bribe as part of a plan to bring down the-then center-left coalition of Romano Prodi.

Prodi still won in 2006, but his coalition finally collapsed in 2008, paving the way for early elections and Berlusconi’s return to power. De Gregorio, who had formed part of Prodi’s coalition, defected to Berlusconi’s conservatives and was re-elected in that capacity in 2008.

And from Deutsche Welle, resurrection?:

Berlusconi comeback in European elections?

Silvio Berlusconi is planning his comeback in Europe. Thus far, Brussels isn’t taking the idea too seriously. But his appeal at the ECJ and a political rehabilitation in Italy might make it possible.

Those who know Silvio Berlusconi won’t be surprised that he is planning a comeback on an international platform. At a meeting with his re-established political party, Forza Italia, in January, the former Italian prime minister announced his plans to run for office during European elections in May 2014 – despite the fact that a law forbids him from doing exactly that.

The so-called “Legge Severino” is a law prohibiting convicts to run for a post for six years. And then there’s the Mediaset verdict imposing a two-year-ban from public office; both obstacles in the way of the former premier, who was convicted on tax fraud charges and is currently facing more recent charges of bribery.

For a while now, Berlusconi’s lawyers have been working on a plan to circumvent the “Severino” law, according to reports in the Italian media. That plan leads directly to the European Court of Justice (ECJ) in Luxemburg, where Berlusconi has already filed for appeal proceedings.

ANSAmed grimly enumerates:

Almost one in four Italians in dire straits

  • 24.9% of households in situation of ‘deprivation’

Almost one in four Italian households, 24.9%, are in a situation of “deprivation”, Istat said Tuesday, as they are positive for at least three of the statistics agency’s nine factors of economic hardship. These include the inability to meet unexpected expenses, being behind in loan payments or being unable to afford a meal with a high protein content at least once every two days.

Istat said the percentage of people in a situation of deprivation was 22.3% in 2011, when Italy entered its longest postwar recession.

More from TheLocal.it:

Italians pay almost as much tax as the Swedes

Average tax levels in Italy grew from 41.3 percent in 2000 to 42.5 percent in 2011, the agency said.

Meanwhile, the average rate in Sweden, where taxpayers receive favourable social benefits in return for their high contributions, actually fell from 51.7 percent in 2000 to 44.7 percent in 2012.

Taxes in Italy might be almost as high as in Sweden, but the main gripe among Italians is that they don’t get the same high standard of services in return, whether that be in healthcare, education or public transport.

Istat’s report, called Noi Italia, also revealed that just 61 percent of Italians between the ages of 20 and 64 have jobs, well below the 75 percent employment level stipulated by the European Union, had jobs in 2012.

Women fared the worst, with just 50.5 percent – one of the worst rates in Europe – being in work in 2012, while 71.6 percent of working-age men were employed.

From Reuters, revelatory blowback:

Italian President Napolitano under fire over Monti appointment

Italian President Giorgio Napolitano faced fierce criticism on Monday over reports that he asked Mario Monti about replacing Silvio Berlusconi as prime minister months before his government fell at the height of the euro zone crisis in 2011.

Berlusconi’s Forza Italia party expressed “bitterness and shock” at the reports, based on interviews with Monti and others in a forthcoming book by journalist Alan Friedman, extract of which were published by the Financial Times and the Corriere della Sera newspapers.

Although the events recounted in the book occurred more than two years ago, they risk reopening wounds between the parties that could complicate the already difficult situation facing Prime Minister Enrico Letta’s fragile ruling coalition, which is struggling to adopt economic and political reforms.

“We are dismayed to learn that, as early as June 2011, the head of state was actively taking steps to bring down the Berlusconi government and replace him with Mario Monti,” the parliamentary floor leaders of Forza Italia, Renato Brunetta and Paolo Romani, said in a statement.

After the jump, the latest from Greece, a Cypriot uptick, Mexican vigilante motives, Myanmar miseries, troubles for Australian industry and ministerial corporateering, Chinese strategy, bad numbers for Japan, environmental woes, a Big Agra GMO win, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day I: Spies, protests, lies, zones


A whole lot going on in the realm of spooks, lack ops, rampant militarism and other dark corners of the realms of deep politics and distrus.

We open on an upbeat note with this from The Guardian:

Protesters rally for ‘the day we fight back’ against mass surveillance

  • Alongside demonstrations in 15 countries, thousands contact congresspeople and take online action supporting privacy rights

Tens of thousands of people and organisations were participating in a protest against the NSA’s mass surveillance on Tuesday, bombarding members of Congress with phone calls and emails and holding demonstrations across the globe.

Dubbed “The day we fight back”, the action saw scores of websites, including Reddit, BoingBoing and Mozilla host a widget inviting users to pressure elected officials.

The online demonstration saw more than 18,000 calls placed and 50,000 emails sent to US congressmen and women by midday Tuesday. Physical protests were planned in 15 countries.

“The goal of the day we fight back is to stop mass surveillance by intelligence agencies like the National Security Agency,” said Rainey Reitman, activism director at the non-profit Electronic Frontier Foundation, which helped organise the events.

And a report from RT America:

‘Day We Fight Back’ takes on NSA

Program notes:

It was declared ‘The Day We Fight Back’. Internet companies and activists around the world had an international day of protest on February 11th. Over 5,700 websites changed their homepages to demand the National Security Agency stop its massive surveillance efforts. On Capitol Hill, representatives from privacy groups, religious institutions NS Congressman Rush Holt came together to talk about the issue of NSA spying. RT correspondent Meghan Lopez was there and brings us more.

Meanwhile, from TheLocal.fr, Barry O has a new BFF:

France and US reconcile over NSA spying scandal

On the occasion of President François Hollande’s visit to the US, he and American President Barack Obama said on Tuesday they have settled differences over digital spying efforts revealed by leaker Edward Snowden.

French President Francois Hollande, speaking alongside his US counterpart Barack Obama, said Tuesday that the two allies had resolved their differences over American digital eavesdropping.

Leaders from many US allies, including Germany’s Chancellor Angel Merkel, were angered by intelligence leaker Edward Snowden’s revelation that the United States monitors their telephone calls. But it is not known if Hollande’s own telephone was tapped, and France has been more cautious in its critique, emphasizing the importance of its intelligence cooperation with Washington.

“We wanted to fight against terrorism, but we also wanted to meet a number of principles. And we are making headway in this cooperation. Mutual trust has been restored,” Hollande said.

More from the Associated Press:

Obama: No country where we have no-spy agreement

President Barack Obama says there is no country with which the United States has “a no-spy agreement.” But he says the United States endeavors to protect privacy rights as it collects foreign intelligence.

Obama says the United States and its allies remain concerned about specific potential terrorist networks that could attack and kill innocent people. He says the U.S. will have to maintain a robust intelligence gathering effort, but says it will respect privacy.

Obama made his remarks during a joint news conference with French President Francois Hollande.

The Guardian carries a call for debate:

Ed Miliband calls for US-style debate over Britain’s intelligence agencies

  • Labour leader calls for examination of oversight of GCHQ, MI5 and MI6 in wake of Edward Snowden leaks

A major overhaul of the oversight of Britain’s intelligence agencies, which could lead to an opposition politician chairing parliament’s intelligence and security committee and reform of the intelligence commissioners, needs to be introduced, Ed Miliband has said.

The Labour leader praised Barack Obama for starting an “important debate” in the US – after the White House appointed a panel in the wake of the Edward Snowden leaks – and called for a similar debate in Britain.

In some of his most extensive comments on the NSA leaks, Miliband told a Guardian audience that reforming the oversight of GCHQ, MI5 and MI6 was “definitely” part of his campaign to challenge “unaccountable power”.

From the Greens/European Free Alliance office of the European Parliament, the latest on the instigator of Spookgate 2013-2014:

Snowden confirms wish to address MEPs; EP must take into account

NSA whistleblower Edward Snowden has confirmed in writing that he is prepared to answer questions from the European Parliament’s inquiry into the revelations of mass surveillance by intelligence services. He will at least respond in writing, possibly also via a recorded video message. The Greens welcomed the confirmation and insisted that the EP must immediately move to facilitate this, with Green justice and home affairs spokesperson Jan Philipp Albrecht stating:

“The confirmation that Edward Snowden is willing to answer questions in the context of the EP’s inquiry is a significant and positive development. To conclude the inquiry without testimony from its key witness would render the process clearly incomplete. We would urge those centre-right MEPs that have hitherto resisted giving Snowden a hearing to drop their resistance. We will request an additional, extraordinary meeting of the EP inquiry before a vote is taken on its final report, with a view to ensuring the testimony can be taken into account.

“It is clear that Edward Snowden will only be able to give us comprehensive information if he can be guaranteed a safe stay in Europe for a later in-depth testimony. Next week, the EP’s civil liberties committee will decide if the European Parliament will call on EU governments to grant such protection. The Greens have pushed for this and continue to urge all political groups to support the move.”

The McClatchy Washington Bureau hits a roadblock:

Americans find swift stonewall on whether NSA vacuumed their data

Since last year’s revelations about the National Security Agency’s massive communications data dragnets, the spy agency has been inundated with requests from Americans and others wanting to know if it has files on them. All of them are being turned down .

The denials illustrate the bind in which the disclosures have trapped the Obama administration. While it has pledged to provide greater transparency about the NSA’s communications collections, the NSA says it cannot respond to individuals’ requests without tipping off terrorists and other targets.

As a result, Americans whose email and telephone data may have been improperly vacuumed up have no way of finding that out by filing open records requests with the agency. Six McClatchy reporters who filed requests seeking any information kept by the NSA on them all received the same response.

Reuters probes:

Democrats seek probe of U.S. contractor for security checks

Democratic lawmakers on Tuesday sought an investigation of the largest U.S. government contractor for security checks, saying it received huge bonuses during the time it is accused of bilking the government of millions of dollars.

Representative Elijah Cummings said a congressional report found United States Investigations Services “adopted aggressive new financial incentives to accelerate its work” in 2007 and took shortcuts in its review of background checks while charging the federal government for the full service.

The company, the largest private provider of security checks for the government, was accused in a Justice Department lawsuit last month of bilking the government of millions of dollars through improper background checks.

The contractor also received millions of dollars in bonuses from the Office of Personnel Management, including $2.4 million in 2008, $3.5 million in 2009 and $5.8 million in 2010, said Cummings, the ranking Democrat on the House of Representatives Oversight and Government Reform committee.

And a video report from RT:

Firm that conducted Snowden background check accused of fraud, Microsoft’s Sino-censoring search engine, literary censorship in India, and a security threat averted by some toy-grabbing zealots. . . Continue reading

Chart of the day II: Uncle Sam, global bully


From The Military Balance 2014, a new report by the International Institute for Strategic Studies, a sobering reminder of the truly unipolar nature of world military power in the 21st Century:

BLOG Military

Headline of the day II: EconoAggroGrecoCrises


Our collection of headlines from the economic, political, and environmental realms opens on a progressive profession from BBC News:

New York Mayor Bill de Blasio targets income gap ‘threat’

New York City Mayor Bill de Blasio has pledged to raise the minimum wage and issue ID papers to undocumented immigrants.

Setting out the policies of his new administration in a State of the City address, Mr de Blasio took aim at the city’s yawning inequality gap.

The 52-year-old also wants to raise taxes on the wealthy to fund universal pre-kindergarten programmes.

Elected in November, he is New York’s first Democratic mayor in two decades.

From The Guardian, eyes on Oakland from across the pond:

The city that told Google to get lost

Highly paid employees are pushing up rents near the tech giant’s California headquarters, forcing locals out and destroying communities, say activists. Now Oakland’s residents are fighting back – hard. But are they too late?

If pushing your enemy into the sea signifies success, then Google’s decision to start ferrying workers to its campus by boat suggests the revolt against big technology companies is going well. Standing on the docks of Oakland, on the east side of San Francisco Bay, last week, you could watch the Googlers board the ferry, one by one, and swoosh through the chill, grey waters of the bay towards the company’s Mountain View headquarters, 30 or so miles to the south.

Not exactly Dunkirk, but from afar you might have detected a whiff of evacuation, if not retreat. The ferry from Oakland – a week-long pilot programme – joined a similar catamaran service for Google workers in San Francisco launched last month. The search engine giant is not doing it for the bracing sea air. It is a response to blockades and assaults against buses that shuttle employees to work.

From The Independent, that old time religion:

Utah’s Mormons celebrate as polygamy restrictions are struck down

  • Part of law was ruled in violation of First Amendment

A US federal judge has struck down a key part of Utah’s law banning polygamy – providing welcome relief to one practising Mormon family. Joe Darger, who described himself as an “independent Mormon fundamentalist”, has 25 children with three wives.

US District Judge Clark Waddoups threw out part of a bill which allows the state to use cohabitation as a basis for prosecution, although Utah does still prohibit bigamy.

Reuters records a visit:

Obama, France’s Hollande make pilgrimage to Jefferson’s Monticello

President Barack Obama and French President Francois Hollande toured Thomas Jefferson’s plantation estate on Monday in a show of solidarity for Franco-American ties that have endured for more than two centuries despite the occasional tempest.

The visit to Monticello, home to America’s third president, served to showcase a relationship that stretches back to the founding of the United States in the late 18th century, an alliance still strong despite spats over U.S. eavesdropping and trade talks with the European Union.

Hollande, 59, who split from his partner, Valerie Trierweiler, last month after an affair with an actress, arrived solo for the first state visit hosted by Obama since he won a second term in 2012.

Heading north of the border with an offer Rob Ford can’t refuse from The Independent:

Canada installs first ever crack-pipe vending machines

  • Controversial vending machines dispense them for $0.25 in attempt to curb spread of HIV and hepatitis

A Canadian NGO has installed crack pipe vending machines in the city of Vancouver in a bid to curb the spread of HIV and hepatitis among users.

The polka-dot vending machines are operated by the Portland Hotel Society, a drug treatment centre, and dispense newly packaged crack pipes like snacks for $0.25 (13p).

The group says the pipes are less likely to chip and cut users’ mouths as a resulting of overheating and overuse, preventing the spread of disease among crack addicts.

“They don’t run the risk of then sharing pipes, or pipes that are chipped or broken,” Kailin See told CTV Vancouver.

On to Europe with bankster news from Channel NewsAsia Singapore:

Eurozone banks will be allowed to fail, says regulator

The incoming head of Europe’s new single banking supervisory authority has warned that weak eurozone banks will be allowed to fail following upcoming stress tests, in an interview in Monday’s Financial Times.

Frenchwoman Daniele Nouy was giving her first interview since being appointed chief of the Single Supervisory Mechanism, set up as part of attempts to stabilise the EU’s banking system and shift the financial costs of failed banks away from sovereign governments

“We have to accept that some banks have no future,” she told the FT. “We have to let some disappear in an orderly fashion, and not necessarily try to merge them with other institutions”.

EurActiv regulates with dubious efficacy:

EU rules to light up derivatives markets set for shaky start

New rules coming into force in Europe this week to shine more light on the $700 trillion (€513 trillion) derivatives markets will take years to produce a clearer picture of these complex products which were at the heart of the financial crisis.

When Lehman Brothers collapsed in 2008 markets were in the dark over a tangle of derivatives on the US investment bank’s books. Financial markets froze because of uncertainty about who was exposed to Lehman’s derivatives, such as credit default swaps or interest rate swaps. US insurer AIG also ran up big losses linked to derivatives.

In response, politicians and regulators around the world called for action to make risks easier to spot in this opaque part of global financial markets.

The new EU rules, coming in on Wednesday, aim to increase transparency by requiring reporting of transactions.

On to Britain and a warning from the London Telegraph:

Lord Turner: UK economy is like 90s Japan

  • City regulator during the 2007/8 crisis says that the UK has not rebalanced its economy, and risks further shocks as a result

Lord Turner has warned that the UK has failed to rebalance its economy and is simply repeating the errors made in the run-up to the 2007/8 financial crisis.

The self-styled technocrat, who was chairman of the City regulator until last April, likened the domestic economy over the last five years to Japan in the 1990s.

The former Financial Services Authority chief – who made it on to the shortlist to replace Lord King as Governor of the Bank of England – said that although the economy was now showing obvious signs of growth, there was the potential that it will not be sustained due to the continued build up of credit in the system.

“The concerning thing about the UK economy is that from 2009 until early last year, a lot of the debate was around the need to rebalance, from being over focused on financial services and the housing market,” Lord Turner told The Telegraph.

The Independent doesn’t feel the love:

Where is the love? Majority of international students in the UK do not feel welcome

The majority of international students studying in the UK feel unwelcome in the country with a significant number saying they would not recommend to their friends that they come here to attend university, says a survey published on Monday.

A study of the attitudes of 3,100 international students by the National Union of Students revealed that more than 50 per cent believed the UK Government was either “not welcoming” or “not welcoming at all towards overseas students”.

Figures show PhD students are most likely to feel unwelcome (65.8 per cent) with those from Japan (64.5 per cent), Nigeria (62.8 per cent) and India (62 per cent) the next most likely to say they have received hostile treatment. Students from India, Pakistan and Nigeria are most likely to advise their friends not to study here.

The Guardian, with banksters doing what bankster do:

City bonus row reignites with Barclays to admit £2bn in payments

  • Bonus payout contrasts with bank boss Antony Jenkins’ pledge for restraint and helps push total since 2008 crisis towards £80bn

Controversy over City bonuses will be reignited this week when Barclays admits it paid its staff more than last year, fuelling predictions that the amount of bonuses paid out across the Square Mile since the 2008 crisis could soon hit £80bn.

Barclays is expected to reveal on Tuesday that its bonus pot topped £2bn last year – more than it paid out in the previous 12 months – despite a pledge by its boss Antony Jenkins to show restraint on pay.

Starting the reporting season for the high-street banks, Barclays will be followed in the coming fortnight by bailed-out banks Lloyds Banking Group and Royal Bank of Scotland, as well as HSBC, in disclosing how much each has paid in bonuses for 2013.

The Irish Times gives us the latest instance of Banksters Behaving Badly, this time involving the €12.3 million collapse of Anglo Irish Bank, the biggest bustout in Irish history:

Seán Quinn suspected Anglo was doing ‘a sweetheart deal’

  • Businessman tells court the bank knew it was in serious trouble from November 2007

Former businessman Sean Quinn has told the Anglo Irish Bank trial that he suspected Anglo was “doing a sweetheart deal” when it forced him to sell his stake in the bank.

Mr Quinn, who admitted he used to be Ireland’s richest man, said he could not understand why the share price of Anglo fell so much in July 2008 as the deal was going through. He said that he approached a solicitor in London about the matter.

Mr Quinn told Dublin Circuit Criminal Court that the bank knew from November 2007 that it was in serious trouble but that Sean FitzPatrick and David Drumm maintained it was “in rude health” as late as September 2008, shortly after the bank guarantee.

On to France and presidential woes from The Guardian:

Sluggish French growth figures pile more pressure on François Hollande

  • Bank of France forecasts economy will grow 0.2% in January-March compared with the final quarter of 2013

France will eke out meagre economic growth in the first three months of 2014, a spokesman for the central bank said on Monday, as the eurozone’s second-biggest economy struggles to avoid falling further behind the pack.

Data on Monday indicated that French industrial production dropped 0.3% in December by comparison with November, falling short of expectations, although the figure for the fourth quarter as a whole was positive.

The weakness of France’s recovery is adding to pressure on President François Hollande to deliver faster growth. The deeply unpopular Socialist leader has embarked on a shift to more business-friendly policies to bring down near-record unemployment.

France 24 hits the picket lines:

Mass taxi strike strands Paris commuters, tourists

Hundreds of taxis gathered at Paris airports before dawn on Monday as part of a nationwide protest against what cab drivers say is unfair competition posed by a recent surge in popularity of chauffeured cars offered by private companies, or VTCs.

The striking taxis gathered at 6am local time at Charles de Gaulle airport amid a cacophony of blaring horns and under a banner reading “55,000 angry taxis”, with one airport source saying no taxis were servicing the airport, a major international hub.

At regional hub Orly, a hundred vehicles blocked taxi queues to prevent cars from picking up passengers.

Would-be taxi drivers face exorbitant fees ahead of receiving an operating license, often running into the hundreds of thousands.

Switzerland next, and post-electoral anxiety from TheLocal.ch:

Government in damage control mode after vote

Reeling from a vote to cap EU immigration, Switzerland’s government and business community moved on Monday to limit the damage to trade ties with the big European bloc.

Swiss President and Foreign Affairs Minister Didier Burkhalter played down talk of a “Black Sunday” in ties with Brussels, after 50.3 percent of voters backed a referendum proposal to end a seven-year-old pact that gave equal footing to most EU citizens in the Swiss labour market.

“We need to avoid that kind of language,” he told reporters.

“Switzerland is not going to rip up its deal with the EU on freedom of movement,” he insisted.

EUbusiness covers another set of winners:

Swiss vote is boon for far-right ahead of EU parliament vote

Anti-EU parties already expected to do well in European Parliament elections in May claim the Swiss vote to curb immigration vindicates their stand.

“What the Swiss can do, we can do too,” said Geert Wilders, leader of Holland’s extreme-right PVV.

France’s extreme right National Front party too hailed “the Swiss people’s lucidity,” calling for Paris to stop “mass immigration” while Austria’s far-right FPO party said the country would vote the same way given the chance.

“With the (Swiss) referendum, it becomes more likely that the anti-Europeans will represent the biggest group in the European parliament, with a quarter of the MEPs,” German daily Tagesspiegel said.

Another potential blowback from New Europe:

After the Swiss referendum: the possible return of bank secrecy

The result of the Sunday referendum in Switzerland has stunned the EU. Many politicians reacted with dismay, sometimes even bordering on anger. Thus, Luxembourg’s prime minister Jean Asselborn said: “I respect the decision of the Swiss people… but the Swiss people must also respect the values of the EU.”

The same tone was heard from the French Foreign Minister Laurent Fabius, who said on Monday that Europe would review its relations with Switzerland after the “worrying” Swiss vote to reintroduce immigration quotas with the European Union. “In my opinion it’s bad news both for Europe and for the Swiss because Switzerland will be penalised if it withdraws,” Fabius said. “We’re going to review our relations with Switzerland,” he said.

The withdrawal in question would be Switzerland’s retreat from the Schengen agreement, of which Switzerland is one of the signatories, but which cannot be applied selectively.

The Commission was less vociferous, with the spokeswoman Pia Ahrenkilde Hansen stating on Monday only that “ The Commission regrets the initiative, since it infringes the principle of the free movement”. “Will examine politically and juridically our relations with Switzerland, but restrictions are unacceptable”, she said.”

Counting costs with EUobserver:

Swiss vote jeopardises involvement in multi-billion EU programmes

The EU’s multi-billion research programme Horizon 2020 and its Erasmus student exchange with Switzerland hang in the balance following a Swiss vote over the weekend in favour imposing quotas on EU migrants.

The two would automatically be suspended should Switzerland move to include limits on EU’s newest member state, Croatia. Both agreements are conditioned on free movement.

Croatia is scheduled to sign off on a reciprocal free movement agreement with Switzerland on 1 July. All other member states have a similar agreement.

Still more blowback from Deutsche Welle:

Swiss vote to stem immigration could cause ‘a lot of problems’

Switzerland’s neighbors and the EU say they regret the country’s narrow vote to limit annual migration inflows. Veteran German politician Wolfgang Schäuble warns of “a lot of problems” for the Swiss government in Bern.

On Monday, Chancellor Angela Merkel’s spokesman, Steffen Seibert, said that Germany respected the result of Switzerland’s vote. However, he added, it “raises considerable problems,” and said that Merkel had repeatedly stated free movement was a “prized asset” for Germany.

The European Commission said in a statement released after the referendum that it regretted the decision, and would “analyze the consequences of this initiative to our relations in general.”

Despite voicing regret about the result, German Finance Minister Wolfgang Schäuble warned against ignoring the sentiment expressed.

“Of course this does show a little that people are increasingly uneasy about unlimited freedom of movement in this world of globalization. I believe we must take this seriously,” Schäuble said on ARD public television. “We regret this decision. It will cause a lot of problems for Switzerland.”

And a parallel story from TheLocal.ch:

Foreigner jobless rate rises again in January

The unemployment rate in Switzerland remained at 3.5 percent in January, unchanged from the previous month, but the percentage of expats out of work rose again, figures released by the government showed on Monday.

The number of people registered for jobless benefits edged higher to 153,260 people, up 3,823 from December 2013, the Swiss Secretariat for Economic Affairs (Seco) said.

But the level of unemployed foreigners in the country jumped significantly to 7.1 percent in January from 6.9 percent the previous month, while the rate for Swiss nationals stayed unchanged at 2.4 percent.

The rate of expat jobless in Switzerland, accounting for almost half the unemployed in the country, has grown every month for the past several months.

On to Spain, and a change underway from TheLocal.es:

3.5 million ‘Spanish’ Jews to apply for citizenship

Jewish associations expect 3.5 million Sephardic Jews to apply for Spanish citizenship after Spain’s Justice Ministry approved a draft law which will allow them to return to the country their ancestors were kicked out of more than 500 years ago.

The descendants of Sephardic Jews banished from Spain in 1492 will now be able to regain Spanish nationality under a new law approved by Madrid’s Cabinet of Ministers on Friday.

Those who can prove their Spanish origins will be able to apply for dual nationality at the Federation of Jewish Communities of Spain, El Mundo newspaper reported on Sunday.

According to Israel’s Latin American, Spanish and Portuguese Association (OLEI), the newly-approved legislation has already resulted in a flurry of applications from Sephardic Jews around the world.

TheLocal.es trods the boards:

Abortion takes centre stage at Spain’s Oscars

A controversial plan in Spain to scrap easy access to abortions took centre stage at the Goya Awards, the country’s equivalent of the Oscars, with several actresses slamming the reform as they accepted their prizes.

The ceremony was broadcast live on public television network TVE to an estimated audience of 3.6 million people.

The issue has prompted deep debate and big protests in Spain, with many opposed to the conservative government’s draft law unveiled in December that would allow abortion only in cases of rape or health risk to the mother.

Critics say the measure scrapping more liberal access to abortion would throw the Catholic country back decades, when Spanish women had to go abroad to seek pregnancy terminations.

If the law is adopted, Spain would be the first country in the 28-member European Union to reverse legalizing abortion.

On to Portugal and a pronouncement from El País:

“Portugal is not going to need a second bailout”

  • Economy Minister António Pires de Lima says the program will be exited with a growing economy

May 17 is a key date for Portugal. It’s the day on which the 78-billion-euro bailout program it sought in April 2011 is due to end and Portugal will supposedly fully return to the sovereign debt market to fund itself. However, it remains to be seen how Spain’s Iberian neighbor will emerge from this financial assistance program; whether it will be a clean break without any further support, or the current bailout will be replaced by a softer rescue package that still involves some form of external help.

In an interview with EL PAÍS, Portuguese Economy Minister António Pires de Lima explains that the center-right coalition government of Prime Minister Pedro Passos Coelho will unveil its plans when it believes the moment is right to do so. He is encouraged by the fact the Portuguese economy is already on the road to recovery, although this has yet to become a reality for the population at large.

Among other draconian measures, a brutal increase in taxes, the elimination of extra payments for civil servants and pensioners, wage cuts, and the increase in the standard value-added tax rate to 23 percent have all hit the middle classes hard. The 2014 state budget maintains the fiscal adjustment drive of the previous two years. On top of the withdrawal of extra payments and cuts in salaries introduced in 2012 and the rise in taxes in 2013, this year’s budget also includes a further cut in wages for civil servants earning more than 675 euros a month.

The Portugal News excludes:

Dictator can’t buy Portuguese bank- MEP

Portuguese MEP Ana Gomes told Lusa on Friday that the Bank of Portugal and the Portuguese Stock Market Regulator (CMVM) had to fulfill “their role” and stop Equatorial Guinea buying into troubled bank Banif and that she was going to ask the European Commission (EC) to step in.

“This is yet another case where I have to intervene and ask the EC to ensure that a bank that is being rescued with funds that are part of Portugal’s bailout loan, and which are going to have to be paid back by Portuguese taxpayers, is not bought up in part by a corrupt and criminal regime as part of a money laundering scheme”, the Socialist MEP told Lusa News Agency.

“I think it is unbelievable that something like this can happen and hope that the Bank of Portugal and the CMVM do their job properly and do not allow this to happen because it is extremely dangerous for BANIF and I would like to alert all account holders about how incredibly dangerous it is going to be to have financing from somewhere like Equatorial Guinea, a sinister regime that is flagged on all indexes of dictatorial, miserable regimes where the population gets poorer and poorer while the presidential family lines their pockets on a daily basis”, she said.

On to Italy and more bad news from TheLocal.it:

Recovery hopes dwindle as Italian industry lags

A 0.9-percent slump in Italy’s industrial production in December, following three months of consecutive increases, disappointed investors on Monday and cast a shadow over hopes for a recovery this year.

The official data from the Istat agency showed industrial production was also down 0.7 percent from December 2012 and down 3.0 percent over all of 2013.

Analysts had expected the monthly figure to remain unchanged, after the economy in the third quarter formally ended two painful years of recession with zero growth in Italy’s gross domestic product (GDP).

“The result does not question the forecast of a return to growth in the fourth quarter of 2013 but it does confirm that the recovery will be very gradual,” said Paolo Mameli, an economist from Intesa Sanpaolo bank. The fourth quarter figure will be announced on Friday.

After the jump, the latest crises news from Greece, Bosnian outrage, Ukrainian regime change dreaming, Mexican vigilantes, Indian worries and wages, Thai troubles, neoliberalism moves in Myanmar, development bank devastation in Cambodia, Aussie auto woes, the latest Chinese angst, more down numbers in Japan, energy environmental woes, and the latest Fukushimapocalypse Now!. . . Continue reading

Headlines of the day I: Spies, laws, drones, hits


And a whole lot more. . .

We open today’s compendium of headlines from the worlds of spookery [state and corporate], militarism, geopolitical zone crises and such with some semantic antics from United Press International:

National Security Staff name returns to National Security Council

The name of the National Security Staff was changed back to the National Security Council staff Monday, President Obama said in an executive order.

“All references to the National Security Staff or Homeland Security Council Staff in any executive order or presidential directive shall be understood to refer to the staff of the National Security Council,” Obama said in the one-page order.

In a blog posted on WhiteHouse.gov, NSC spokeswoman Caitlin Hayden said, “[We] are once again the National Security Council staff.”

The name was changed to National Security Staff in 2009, when the Obama administration combined the National Security Council staff and the Homeland Security Council staff, Hayden said.

And from the Washington Post, a not-so-covert op:

Video shows U.S. abduction of accused al-Qaeda terrorist on trial for embassy bombings

After dawn prayers Oct. 5, Nazih Abdul-Hamed al-Ruqai, a wanted al-Qaeda terrorism suspect, returned to his family’s home in Tripoli, Libya.

He stopped his car in front of the house, which was nestled in an affluent neighborhood in the coastal city. It was 6:38 a.m. and still dark.

A white van trailing Ruqai pulled alongside his car. Then at least three men, with guns drawn, jumped out of the van as another car blocked Ruqai’s escape while a third idled down the street.

The men yanked Ruqai, also known as Anas al-Libi, out of his car and threw him in the van, according to a video of the abduction obtained by The Washington Post. The video, from a closed-circuit camera in the neighborhood, provides a rare glimpse of a U.S. covert operation and also captures some of the bewildered reaction in Ruqai’s home once he had disappeared.

And the Snowden bombshell de jour from The Intercept:

The NSA’s Secret Role in the U.S. Assassination Program

The National Security Agency is using complex analysis of electronic surveillance, rather than human intelligence, as the primary method to locate targets for lethal drone strikes – an unreliable tactic that results in the deaths of innocent or unidentified people.

According to a former drone operator for the military’s Joint Special Operations Command (JSOC) who also worked with the NSA, the agency often identifies targets based on controversial metadata analysis and cell-phone tracking technologies. Rather than confirming a target’s identity with operatives or informants on the ground, the CIA or the U.S. military then orders a strike based on the activity and location of the mobile phone a person is believed to be using.

The drone operator, who agreed to discuss the top-secret programs on the condition of anonymity, was a member of JSOC’s High Value Targeting task force, which is charged with identifying, capturing or killing terrorist suspects in Yemen, Somalia, Afghanistan and elsewhere.

His account is bolstered by top-secret NSA documents previously provided by whistleblower Edward Snowden. It is also supported by a former drone sensor operator with the U.S. Air Force, Brandon Bryant, who has become an outspoken critic of the lethal operations in which he was directly involved in Iraq, Afghanistan and Yemen.

From CNN, another American in Obama’s dronesights:

Source: U.S. debating targeted killing of American terror suspect overseas

The Obama administration is in high-level discussions about staging an operation to kill an American citizen involved with al Qaeda and suspected of plotting attacks against the United States, a senior U.S. official tells CNN.

The official, who declined to disclose any specific information about the target or the country the suspect presides in, was confirming information first reported by The Associated Press.

The debate about whether to undertake a mission is being held with various commanders in the U.S. military, as well as the U.S. national security agencies. The discussion centers on the risk involved and the importance of the target.

Another country, another state murder op from The Hindu:

Inside the culture of covert killing

Early in the summer of 1988, as scorching winds of death blew across Punjab, a short, wiry man entered the Golden Temple, invisible among the great throngs of pilgrims gathering at the shrine from across India. Inside, he was greeted as an honoured guest by Surjit Singh Penta, the Khalistan terror commander who had made the temple his fortress. For the next several days, Mr. Penta worked with his visitor, an officer assigned by Pakistan’s Inter-Services Intelligence (ISI) Directorate, wiring up the temple with explosives. The threat, he was certain, would deter India from considering storming the temple, as Prime Minister Indira Gandhi had done in 1984.

New Delhi ignored Mr. Penta’s threats: the bombs were duds, and the man Mr. Penta thought was an ISI officer would serve, decades later, as Director of India’s Intelligence Bureau (IB). Nine days into an almost bloodless siege, the terrorists surrendered

Like many intelligence officials, Ajit Kumar Doval has never discussed what happened in the Golden Temple. Those who served during the period, though, speak of skilful deception operations that allowed the penetration of the networks linking Mr. Penta to the ISI; of the interception and disappearance of the Pakistani intelligence official as he made his way across the Punjab border to Amritsar.

The President of India later handed Mr. Doval a small silver disc, embossed with the great wheel of dharma and a lotus wreath, and the words Kirti Chakra.

Now, as former Intelligence Bureau (IB) special director Rajinder Kumar faces trial for the extra-judicial execution of Mumbai college student Ishrat Jehan Raza and three others, Mr. Doval’s story tells us something important. The Ishrat case is just part of a culture of killing. That culture is, in turn, a symptom of a much larger dysfunction. For decades now, India’s government has dodged a serious debate what a viable legal framework for counterinsurgency and counter-terrorism might look like, how it is to be administered and who will make sure it isn’t abused. It has simply ignored hard questions of capacity-building and accountability.

RT has drone buddies:

UK ‘borrowed’ US drones to carry out unreported strikes in Afghanistan

The UK has used American drones over 250 times to carry out previously unreported attacks in Afghanistan, the MoD has admitted. The reports prompted a sharp reaction from British rights groups who slammed the lack of transparency in the UK military.

In response to a freedom of information request by British rights group Drone Wars UK, the Ministry of Defense said it had launched 39 missile strikes from unmanned US craft in Afghanistan. This the first time the Ministry of Defense has admitted to the use of American craft in conflict zones to carry out strikes.

“Of the 2,150 missions flown by UK personnel, there were 271 missions in Afghanistan when UK personnel utilized a US Reaper, as a UK Reaper was unavailable. During these missions, UK personnel released 39 weapons. I am withholding information about weapons released by UK personnel embedded with the United States Air Force on operations in Afghanistan and Libya under Section 27 [of the Freedom of Information Act],” said a statement from the MoD.

And from the Express Tribune, the price of activism opposing death from above:

Anti-drone campaigner goes missing from Rawalpindi

An anti-drone campaigner has gone missing missing after he was picked up from his residence in the outskirts of Islamabad, his family and lawyer said on Monday.

Karim Khan, originally a resident of North Waziristan, had been an active member of the anti-drone campaign and had organised several protests in Islamabad and Peshawar.

His family said that nearly 20 armed people, eight of them in police uniform, raided his residence at Dhok Mustaqeem on Peshawar Road, Rawalpindi late at night between February 4 and 5 and forcibly took him away.

“We do not have any information about his whereabouts since then,” a family member told The Express Tribune.

Nextgov seeks corporate help:

Officials Seek Industry Input on How to Comply With Obama’s NSA Reforms

The Obama administration is spitballing ideas for surveillance reform.

In a speech last month outlining changes to the controversial surveillance programs, Obama said he wants the National Security Agency to continue mining through phone records for possible terrorists, but he doesn’t want the government to hold the call data anymore.

No one is really sure how the government can achieve both goals, but Obama gave Attorney General Eric Holder and top intelligence officials until March 28 to figure it out.

Last week, the Office of the Director of National Intelligence published a request for industry input on the problem. The agency said it wants to investigate whether “existing commercially available capabilities can provide a new approach” to the bulk collection of phone records.

Techdirt notes the hypocrisy:

Gov’t Officials Leak Classified Info To Journalists To Discredit Snowden For Leaking Classified Info To Journalists

  • from the we’re-from-the-government,-we-don’t-do-irony dept

We already mentioned the bizarre NY Times article from over the weekend that described how Snowden apparently used some basic web crawler software to collect the documents he later leaked. As we noted, the basic story itself is unremarkable, other than for how the NY Times tried to turn “man uses basic tool” into a story. However, there is a really good quote from Snowden himself (via his lawyers) in response to the article. Since most of it involves senior government officials telling NYT reporters about security problems at some NSA facilities, Snowden was quick to point out the irony:

“It’s ironic that officials are giving classified information to journalists in an effort to discredit me for giving classified information to journalists. The difference is that I did so to inform the public about the government’s actions, and they’re doing so to misinform the public about mine.”

Pardon me? Fat chance! From The Guardian:

Snowden plea bargain speculation played down by ex-CIA and NSA chief

  • Michael Hayden says he sees little appetite for deal with whistleblower, and portrays US surveillance reforms as limited

The former head of the CIA and the NSA, General Michael Hayden, dampened speculation on Monday that the US might offer a plea bargain to Edward Snowden, the NSA whistleblower.

Hayden, speaking at an Oxford University lecture, said that while deals had been done with other leakers in the past, he detected little enthusiasm for such a deal for Snowden.

His comments come after the US attorney-general Eric Holder and others within the Obama administration hinted at a possible plea bargain.

From the Emerald Isle via the Irish Times, ears in the heart of the police:

Callinan has ‘grave concern’ over Garda ombudsman bugging statement

  • Garda Commissioner seeks clarification over basis for suspicion of gardaí; GSOC ‘regrets’ not reporting

Martin Callinan has expressed “grave concern” that a statement by the Garda ombudsman implied that An Garda Síochana was “in some way suspected of complicity”.

The Garda Commissioner made the comment tonight, after a statement was released by the Garda Síochána Ombudsman Commission (GSOC) this evening regarding suspected bugging of its offices.

In the statement GSOC said three technical and electronic “anomalies” were found during an investigation. GSOC said the anomalies could not be explained but the organisation is “satisfied that its databases were not compromised”.

The ombudsman said it “regrets” taking the decision not to report the matter. “There was no evidence of Garda misconduct,” it added.

United Press International covers old school spookery:

Former U.S. sailor sentenced to 30 years for trying to spy for Russia

Former U.S. Navy sailor Robert Hoffman of Virginia was sentenced Monday to 30 years in prison for attempted espionage against the United States.

Hoffman, 40, of Virginia Beach, Va., was convicted last August of trying to spy for Russia. He served in the U.S. Navy for 20 years before retiring at the rank of Petty Officer First Class in 2011.

The former Navy cryptologic technician was arrested on Dec. 6, 2012, after an FBI sting operation to see if he was willing to spy against the United States, the U.S. Attorney’s Office for the Eastern District of Virginia said Monday in a release.

As part of this investigation, undercover FBI agents posing as Russian operatives contacted Hoffman seeking defense information. In a series of emails and other communications, Hoffman advised that he looked forward to “renewing [a] friendship” with his purported Russian contact, was “willing to develop a mutual trust,” and wanted to be compensated for his activities.

Homeland Security News Wire wants rules, man, rules!:

Israeli legal expert urges development of ethics code for cyberwarfare

Col. Sharon Afek, former deputy military advocate general, says that countries would benefit from developing an ethics code to govern cyber warfare operations. He notes that existing law already prohibits cyber operations which would directly lead to loss of life, injury, or property damage, such as causing a train to derail or undermining a dam. “Israel faces a complex and challenging period in which we can expect both a cyber arms race with the participation of state and non-state entities, and a massive battle between East and West over the character of the future legal regime,” he writes. He acknowledges, though, that only a catastrophic event like “Pearl Harbor or Twin Towers attack in cyberspace” would accelerate developments in this area.

Israel is already engaged in a cyber arms race with its adversaries, but some of the cyberattacks Israel has launched, and which have launched against it, may not be permissible in the legal regime which is slowly developing, according to a former IDF’s deputy military advocate general.

“Israel faces a complex and challenging period in which we can expect both a cyber arms race with the participation of state and non-state entities, and a massive battle between East and West over the character of the future legal regime,” writes Col. Sharon Afek in a study crafted as part of his research at the National Defense College.

From TheLocal.it, Big Brother online:

Italy plans crackdown on internet hate

Politicians from the Democratic Party (PD) will this week propose a new law to tackle internet hate speech, following high-profile attacks against leading politician Laura Boldrini.

The new proposal is due to be put forward this week by MPs Alessandra Moretti and Francesco Sanna, with backing from other PD members, La Stampa reported on Monday.

The aim of the bill is to strip the online sphere of content that is “detrimental to our own dignity”, Moretti was quoted by the newspaper as saying.

If successfully passed by Italy’s lower house and Senate, the law would impact newspaper websites, blogs and individuals’ social media accounts.

After the jump, the latest on the Asian zone, history, and militarism crises, Icelandic censorship threats, spooky automotive anxieties, drones in the Gulf, Greek leaks, and more. . . Continue reading

Humans and landscapes, a complex interaction


On his UC Berkeley faculty website, archaeologist Patrick V. Kirch lists his specialties as “Prehistory and ethnography of Oceania, ethnoarchaeology and settlement archaeology, prehistoric agricultural systems, cultural ecology and paleoenvironmentalism, ethnobotany and ethnoscience, development of complex societies in Oceania.”

In this presentation Dr. Kirch applies the ideas of the cultural landscape developed by an earlier Berkeley geographer, Carl O. Sauer, to human interaction with the landscapes of three Polynesian cultures, those of Mangareva, Mo’orea, and Hawaii.

What kept the Polynesian Islands so green? In part, the phosphorus blown in the winds in dust from China and Mongolia.

But some islands, like those of the Mangareva archipelago and Easter Island, lay in regions missed by the winds from Asia, leaving one other source of phosphorus and other key soil nutrients, populations of fish-eating, guano-pooping sea birds.

Todat the once-forested islets of Mangareva, the smallest, most barren, and most ancient of the three, today resemble a nearly barren desert islands, landscapes created in large part by the relatively late arrival of Polynesians who eliminated or decimated the once varied native bird populations.

Mo’orea is a much younger island, with the human population living in intimate relationship with an evolving and eroding landscape, shifting settlement as new soils are exposed and older soils become depleted.

And then there’s Hawaii, a still-growing landscape but nonetheless precarious landscapes populated by an emerging state society that had neared the carrying capacity of the delicate landscape when Europeans arrived, along with the diseases that laid waste to the Polynesians.

From University of California Television, an important reminder of just how delicate our world really is:

Island Landscapes or Sauer Among the Polynesians

Program notes:

Geographer Carl Ortwin Sauer demonstrated through his work and writings that landscapes are the long-term contingent product of interactions between natural processes and cultural forces. In this lecture, Patrick Kirch, Professor of Anthropology and Integrative Biology, University of California, Berkeley, applies the concept of landscape to the islands of Polynesia. Drawing upon recent multi-disciplinary research, Kirch shows how certain natural properties of islands shaped the course of cultural and social evolution of island peoples, at the same time that cumulative effect of human actions irreversibly altered island environments. Series: “UC Berkeley Graduate Council Lectures” [2/2014]

Hot water: A look inside Reactor #1 at Fukushima


From NHK via Fukushima Emergency what can we do?:

NHK Documentary; “Radioactive Water-Fukushima Daiichi’s Hidden Crisis”

Program notes:

*Please read the note below the video description*

Nearly 3 years have passed since the accident at the Fukushima Daiichi Nuclear Power Plant, but leaking radioactive water is an ongoing problem. The plant’s operator believes the leaks are caused by damage to the containment vessel in Reactor 1. A special remote-controlled boat equipped with a camera captured images of tainted water flowing down a wall inside the vessel. On this program, we explore the causes and potential risks of this hidden crisis.

In order to avoid content ID copyright issues, I removed all background music which was inserted throughout the original broadcast. I have included captions in the portions where audio is eliminated. Nearly 50 percent of the video had background music and I didn’t want another copyright strike. Nonetheless, there is important information in this video.

Please excuse any typos. I spent many hours editing this today.

Li Min: Whale Killing


A China Daily editorial cartoonist weighs in on Japan’s obstinate refusal to stop slaughtering some of the most majestic creatures on the planet:

BLOG Japan whaler

Headlines of the day II: EconoPoliAsianWoes


Today’s compilation of economic, political, and environmental developments opens with a somber statement from the Economic Times:

US economy may be stuck in slow lane for long run

Two straight weak job reports have raised doubts about economists’ predictions of breakout growth in 2014. The global economy is showing signs of slowing _ again. Manufacturing has slumped. Fewer people are signing contracts to buy homes. Global stock markets have sunk as anxiety has gripped developing nations.

Some long-term trends are equally dispiriting.

The Congressional Budget Office foresees growth picking up through 2016, only to weaken starting in 2017. By the CBO’s reckoning, the economy will soon slam into a demographic wall: The vast baby boom generation will retire. Their exodus will shrink the share of Americans who are working, which will hamper the economy’s ability to accelerate.

At the same time, the government may have to borrow more, raise taxes or cut spending to support Social Security and Medicare for those retirees.

From the Daily Dot, the latest from the party of family values:

Are fake candidate websites the new political attack ads?

Republican politicians finally figured out how to use the Internet as a campaign tool, and they’re really proud of themselves. Unfortunately, the GOP’s newfound Web savvy has taken the form of a campaign program that’s ethically questionable, intensely negative, and may or may not be against the law.

The National Republican Congressional Committee created a spate of fake websites for Democratic candidates that at first glance look like normal, legit sites, but then rip into the candidate in the text. The faux sites also have donation forms that send funds to the NRCC. There are several fake microsites up now, and the committee says it’s buying up URLs to create even more.

So is this shit even legal? It’s not an easy thing to answer. The spoof sites teeter on the fine line between parody and fraud, and the devil is in the details of the election law. According to Federal Election Commission regulations, political groups can’t use a candidate’s name in a “special project”—like a website—unless it “clearly and unambiguously shows opposition to the named candidate.”

Cementing class divisions with the San Jose Mercury News:

High prices sending Bay Area renters and homebuyers to outlying communities

Squeezed by astronomical home prices and rents that are almost as unaffordable, a growing number of Bay Area residents are pulling up stakes and trading long commutes for cheaper housing.

They’re heading to places like Tracy, Mountain House, Patterson, Hollister and Los Banos. Some are buying bigger homes and others are renting for much less, hoping to put money aside for a down payment of their own one day, in a replay of the eastward migration during the dot-com boom.

“Rentals in the Bay Area are just too high,” said Alma Gomez, an administrative assistant for Union City who’s heading east with her family.

The San Francisco Chronicle covers another kind of costly leak:

Bay Bridge’s new problem: leaks

The just-opened eastern span of the Bay Bridge, already beset by questions about flawed welds and cracked steel rods, has a new problem: It leaks.

Rainwater is dripping into the steel structure beneath the road deck on the suspension stretch of the span, which is supposed to be watertight, Caltrans said. Outside experts say that could pose a risk of corrosion on a bridge that cost $6.4 billion and is supposed to last well into the 22nd century.

“That’s a problem, a big problem,” said Lisa Thomas, a metallurgical engineer who studies material failure at a laboratory in Berkeley and analyzed bridge rods that snapped last year. “They want it to last 150 years, but with water coming in, something is going to corrode until it’s too thin and weak.”

From the Washington Post removing pedal appendage from orifice:

AOL chief reverses changes to 401(k) policy after a week of bad publicity

AOL chief executive Tim Armstrong told employees in an e-mail Saturday evening that he was reversing the company’s 401(k) policy and apologized for his controversial comments last week.

“The leadership team and I listened to your feedback over the last week,” Armstrong wrote in his e-mail to the company. “We heard you on this topic. And as we discussed the matter over several days, with management and employees, we have decided to change the policy back to a per-pay-period matching contribution.”

The policy change would have switched 401(k) matching contributions to an annual lump sum, rather than being distributed throughout the year with every paycheck. The switch would have punished employees who quit or were fired mid-year. It would also have cost employees who stayed, since they would not see the benefits of compounding in their retirement accounts.

The Financial Express covers funny money:

Bitcoin gang inches towards 100-member mark, hits $13-bn value

Enhanced regulatory oversight in India and other countries seems to be having little impact on spread of bitcoins and other virtual currencies, whose number is fast moving towards a century with a total valuation of close to USD 13 billion.

A number of new entrants, such as bitgem, catcoin, unobtanium and sexcoin, have arrived on the scene even as regulators across the world grapple with risks posed by such currencies and transactions conducted through them.

At least 93 virtual currencies are at present being used by people across the world over the internet, as also for some offline transactions, and their total valuation has reached USD 13 billion (over Rs 80,000 crore), out of which bitcoin alone accounts for over USD nine billion, according to market estimates.

At end of December last year, the number of virtual currencies stood at 67.

Of to Europe and a cautionary note from the London Telegraph:

Eurozone banks face £42bn ‘capital black hole’

Government adviser Davide Serra says this year’s stress tests by European authorities are likely to find fresh problems in the eurozone banks.

Eurozone banks are facing a new capital black hole of as much as €50bn (£42bn), according to one of the UK’s most respected financial analysts.

Davide Serra, the chief executive of Algebris, who advises the Government on banking, said that this year’s stress tests by the European Banking Authority and the European Central Bank were likely to find fresh problems in the eurozone banks.

He said that Germany had one of “the worst banking systems in the world” and that three or four regional Landesbanken were likely to be wound up. He also said banks in Portugal and Greece were likely to need more capital.

Britain next and life at the bottom of the pyramid from The Independent:

Working poor trapped in unbreakable cycle of poverty turn to food banks in their lunch breaks

Millions of low-paid workers are trapped in an unbreakable cycle of poverty, and are even turning up at food banks in their lunch breaks asking for help to feed their families, the Archbishop of York warns.

Dr John Sentamu, writing in The Independent, says low pay is a “scourge on our society” and challenges David Cameron to back up his “warm words” with action to boost the incomes of the working poor.

An independent commission chaired by the Archbishop says the economic recovery will make no difference to the lives of the five million lowest-paid workers unless they paid the so-called “living wage”.

They are being suffering a “double squeeze” on their incomes as their wages remain stagnant and their and living costs rise steadily.

Bankster insecurity from The Guardian:

Barclays blasted over ‘catastrophic’ theft of thousands of customer files

  • Files containing names, addresses, medical details and NI numbers have allegedly been sold for use by scammers

Barclays is under scrutiny by regulators and could face a hefty fine after thousands of confidential customer files were stolen in a data breach described as catastrophic by an adviser to the business secretary, Vince Cable.

The files, containing details on 2,000 individuals including their names, addresses, phone numbers, passport numbers, mortgages and levels of savings, were allegedly sold for use in boiler-room scams, in which vulnerable savers are snared into fraudulent investments.

“This is catastrophic, just awful,” the Liberal Democrat MP Tessa Munt, who is parliamentary private secretary to Cable and has campaigned on mis-selling by banks, told the Guardian. “What protections have Barclays got in place? Are the police going to pursue this, are they going to prosecute, and is someone going to go to jail for this? They should do.”

From The Independent, playing to the base of the base:

David Cameron accused of ‘pandering’ to xenophobia with rhetoric on immigration

Laszlo Andor, the Employment Commissioner, who has previously attacked the Government for its “nasty” curbs on benefits for foreign nationals, will step up his attack during a visit to Britain.

He will accuse politicians of avoiding the “inconvenient truth” that most migrants move for work and are an “asset” to economies like Britain’s with an ageing population.

Mr Andor will warn the Prime Minister he cannot base policy on “perceptions, gut feelings or anecdotes”.

In a speech in Bristol, he will say: “Politicians should be responsible enough to talk about facts, rather than to pander to prejudice, or in the worst cases, xenophobia.”

The Observer crowns hypocrisy:

Royal estates ‘fail to meet targets to build affordable homes’

  • Study finds Crown Estate and Duchy of Cornwall regularly get councils to cut ratios of affordable homes on cost grounds

Two of Britain’s largest landowning bodies, which between them generate millions of pounds a year for the Queen and Prince Charles, are regularly failing to meet affordable housing targets when building new homes on their land.

Amid an escalating housing crisis, planning documents unearthed by the independent Bureau of Investigative Journalism reveal that both the Crown Estate and the Duchy of Cornwall are persuading councils to allow them to cut their affordable housing quotas on the grounds that meeting them would be too expensive.

An investigation by the bureau for the Observer has examined the two landowners’ plans to build 4,299 homes in 31 schemes. Of these, 14 developments, set to produce 2,470 units, fail to meet local targets, resulting in at least 213 fewer affordable homes being built. The bureau also found that 10 of the 19 largest Crown Estate developments have not or will not meet affordable housing targets.

And New Europe bubbles:

London housing market under price bubbles risk

Housing market in London is beginning to show signs of bubble-like conditions, said a research report issued by Ernst and Young Item Club (EY ITEM Club) on Monday, while asking the government to monitor the trend closely and be prepared to intervene.

The EY ITEM Club forecast showed the average house price in London is expected to reach nearly £600,000 by 2018, some 3.5 times the average price in Northern Ireland and more than 3.3 times the average in the North East.

It said the average house prices in Britain growing by 8.4% this year and 7.3% in 2015, before cooling to around 5.5% in 2016.  House prices would show a regional divergence. Outside of London and the South East, the regions with the highest levels of house price growth are expected to be the South West and East of England, both set to grow by 6.2% from 2013-18.

Switzerland next and job-creating electoral results from TheLocal.ch:

Voters back national rail infrastructure plan

A project to boost financing for passenger rail infrastructure won widespread support from Swiss voters in a national referendum on Sunday.

More than 62 percent of the electorate voted for the improvements designed to improve train service through 6.4 billion francs’ worth of projects between now and 2025.

The plan will also add an extra billion francs a year to the four billion francs already allocated annually for rail infrastructure and maintenance.

It will allow for improvements to service on Lausanne-Geneva, Bern-Lucerne, Zurich-Chur, Lucerne-Giswil, Bellinzona-Tenero and Zurich-Fiesch routes, according to the federal government, which backed the proposal.

The expansion gives the green light for the financing of such projects as the expansion of Geneva’s main train station Cornavin (790 million francs) and a billion-franc modernization of the Lausanne station and its links with Renens, the nearby suburb.

While BBC News has another electoral result, and a possible Swiss miss:

Swiss immigration: 50.3% back quotas, final results show

Swiss voters have narrowly backed a referendum proposal to bring back strict quotas for immigration from European Union countries.

Final results showed 50.3% voted in favour. The vote invalidates the Swiss-EU agreement on freedom of movement.

Fiercely independent Switzerland is not a member of the EU, but has adopted large sections of EU policy. Brussels said it regretted the outcome of the vote and would examine its implications.

A Yes vote of more than 50% was needed for the referendum to pass.

On to Spain and life on the sombra side from TheLocal.es:

Spain’s shadow economy flourishes in downturn

Spain’s shadow economy — where cash is king, there are no contracts and the taxman is cut out of the equation — is flourishing amid an economic downturn that has pushed the jobless rate to 26 percent.

Economists estimate Spain’s underground economy equals 25 percent of the country’s gross domestic product.

The parallel economy “unfortunately is a longtime problem” in Spain, which “has worsened due to the economic crisis”, said Santos Nogales of the UGT, Spain’s second-largest labour union.

“Undeclared work does not distinguish between nationalities. It touches immigrants and many Spaniards,” he added.

thinkSPAIN delivers a shock:

New electricity bill structure ‘penalises energy saving’ and increases costs for low-use households, say consumer groups

CONSUMER protection groups have criticised the government’s new electricity billing structure as it ‘penalises’ those who use the least power and does not provide any incentive to save on energy consumption.

A year ago, the ‘fixed’ part of a household bill accounted for 35 per cent and the variable part, relating to consumption, was 65 per cent, but this was changed last July with a gradual move towards the standing charge taking up a higher percentage of what is paid by residential homes.

Now that this gradual migration has finished, from this week onwards, the fixed charge will be 60 per cent of the bill and the variable consumption-related part 40 per cent.

While New Europe lays off:

Jobless total spikes

Spanish government figures show that the number of people registered as unemployed has risen by 113,097 as temporary job contracts created over Christmas come to an end, AP reported.

On 4 February, the Labor Ministry said the reduction put the total number of those registered in unemployment offices at 4.81 million in January. Year-on-year, the figure was down 166,343.

Quarterly unemployment surveys – seen as more accurate by economists – show Spain’s unemployment rate was 26% in the fourth quarter of 2013, with six million people out of work. The rate is the second highest in the 28-country European Union after Greece.

Spain is battling to recover from a two-year recession. However, the government insists the economy is improving and will create jobs in 2014.  Almost 100,000 people were laid off from the services sector, while employment also fell in agriculture, by 8,110 people and in industry, by 3,577.

And from TheLocal.es, not a crowning glory:

Spain princess ‘evasive’ in fraud hearing

Spain’s princess Cristina tried to distance herself from unprecedented fraud accusations Saturday, telling a judge she had simply trusted her husband, one of the lawyers in the courtroom said.

Spanish King Juan Carlos’s youngest daughter was “evasive” as she testified as a criminal suspect in the Palma de Majorca court, said Manuel Delgado, a lawyer for a civil party in the case, left-wing association Frente Civico.

The first direct member of the Spanish royal family in history to face such a hearing, the 48-year-old blonde Cristina said she “had great trust in her husband”, the lawyer told reporters during a break in the proceedings.

Long thought untouchable as a royal, Cristina finds herself at the centre of the scandal, accused of being complicit in the allegedly fraudulent business dealings of her husband, former Olympic handball player Inaki Urdangarin, who is also under investigation.

While Al Jazeera America covers the culture wars:

Thousands protest proposed abortion restrictions in Spain

Thousands of women marched in the streets of Madrid Saturday to protest against the Spanish government’s plan to limit access to abortion, which could force many women to travel abroad to obtain the procedure.

Protesters chanted “Freedom of abortion!” and waved signs such as “MPs and rosaries, out of my ovaries”, targeting the Catholic Church as the supposed driver of the new restrictions.

Prime Minister Mariano Rajoy’s government said in December it would eliminate a 2010 law that allows women to opt for an abortion within the first 14 weeks of pregnancy.

The new legislation would allow abortion only in cases of rape or a threat to the physical or psychological health of the mother.

After the jump, Greek protests and woes, outrage in Bosnia, crisis in the Ukraine, Mexico rising, hard times in South Korean heavy industry, Chinese austerity and an exodus, Japanese corporate games, and the latest Fukushimapocalypse Now!. . . Continue reading

Emergency markets and the Federal Reserve


Jane D’Arista, researcher at the Political Economy Research Institute (PERI) at the University of Massachusetts, Amherst, former staff economist for House Banking and Commerce Committees and senior analyst for the Congressional Budget Office, talks with The Real News Network’s Jaisal Noor about the implications of central bank monetary policy.

From The Real News Network:

Tapering of Quantitative Easing Is Throwing Emerging Markets into Chaos — And Big Banks Are Getting Richer

From the transcript:

NOOR: And what’s your take on that? Do you believe the economy actually is growing?

D’ARISTA: Well, the economy is growing, but it’s growing in a very dysfunctional way. I mean, it is growing out of proportion. It is not growing in areas that affect Main Street, small businesses, wages, etc. And so it is a concern that that is going.

Now, part of the concern, I would like to say, is also where is this money that the Fed has created gone. And that’s where we get into the issue of emerging markets. We have had a pattern over the last two decades of which this is exactly a replica — not exactly, never exactly, but it’s pretty close. A core country, say, the hegemon, the United States, but others as well, will go into recession. The central bank will start pumping in liquidity. It brings down interest rates in that economy, in the core economy, the developed economy.

The investors turn around and start looking for better rates, more income, search for yield, as they called it. And they have started going, as of the 1990s, into emerging markets to find increased profits.

Now, the first major case, of course, was Mexico, and in that case the money flowed out of the United States. It was there in the international transactions accounts. It went to Mexico. It drove up the stock market in a couple of years by 400 percent. Over this time, of course, Mexicans were using their inflated stocks to borrow from their banks. The money that flowed in was, of course, gone into the peso, and therefore the exchange rate was rising. And so it looked like a wonderful thing for Mexico for a while.

But as in every other case, the Asian crisis, etc., and the one that we’re facing today, there’s a tipping point, the tipping point when the exchange rate becomes overvalued. And that means that while imports are cheaper, exports become more expensive, and you develop a current account deficit, meaning the difference between what the country imports and exports widens and it’s exporting less. And, therefore, to make up that difference it has to start using its foreign exchange reserves.

At this point, the investors look at the situation and they say, oh dear, this is not good and it’s time for us to go, and in the meantime, the core country, the developed countries, one or more of them, have begun to raise interest rates, and the investors flock home. And in that case–and today they’re flocking back into the euro, back into the dollar, etc., and this leaves the countries in crisis.

So we are at a point where we are at the tipping point now with many of these economies. And what we have seen over the last–well, since 2010, the figures are that there’s been about $1 trillion a year flowing into the emerging market economies. Well, it has not been doing a very good job of resuscitating the U.S. economy, because it’s gone away, and therefore it will come back, we’ll get growth, more growth in the U.S. as it begins to come back, but we will have crises elsewhere. And those crises will be severe. That pattern has been with us for 20 years, as I say.

So the question is: why? What are we doing? And why aren’t we stopping it? What’s wrong with this pattern? Who does it hurt? Well, it hurts everybody and it has delayed a recovery in the U.S. and in Europe, with particularly dire results for Southern Europe. And it is now about to do another whammy on the emerging market economies.

Headlines of the day II: EconoPoliSinoFuku


Opening our compendium of headlines fromn the economic, political, and environmental developments, a Trans-Pacific Panic from Techdirt:

USTR Finally Realizing Its All Encompassing Secrecy May Be A Problem, Calls Frantic Meeting For All ‘Cleared’ Lobbyists

  • from the you’re-doing-it-wrong dept

It’s been funny for years watching the USTR continue to repeat the same laughable line about how they’ve had “unprecedented transparency” concerning the Trans Pacific Partnership (TPP) agreement — an agreement that is still completely secret, other than a couple chapters leaked to Wikileaks. Here’s a hint: if the text of the agreement is only available thanks to Wikileaks, you’re not being transparent, precedented or not. Even the NY Times slammed the USTR’s lack of transparency, and multiple members of Congress have been arguing that they’re not at all comfortable with the lack of transparency from the USTR. Because of this, it seems that the USTR’s desire for fast track authority, which would let it route around Congressional review, is on life support and close to dead.

Given that, it appears that the USTR is in panic mode, and has frantically called an all day meeting for all “cleared advisors” (i.e., the corporate representatives who actually do get to see the document) concerning the whole transparency issue.

From the New York Times, double trouble:

Payroll Data Shows a Lag in Wages, Not Just Hiring

For the more than 10 million Americans who are out of work, finding a job is hard. For the 145 million or so who are employed, getting a raise is even harder.

The government said on Friday that employers added 113,000 jobs in January, the second straight month of anemic growth, despite some signs of strength in the broader economy. The unemployment rate inched down in January to 6.6 percent, the lowest level since October 2008, from 6.7 percent in December.

But the report also made plain what many Americans feel in their bones: Wages are stuck, and barely rose at all in 2013. They were up 1.9 percent last year, or a mere 0.4 percent after accounting for inflation. Not only was that increase even smaller than the one recorded in 2012, it was half the normal rate of wage gains in the two decades before the last recession.

More from Deutsche Welle:

US employment figures fail to thrill analysts

  • Fresh figures from the US Labor Department have shown employers have hired far fewer workers in January than expected. Analysts viewed this as a loss of momentum in the national economy after an already weak December.

Meager job gains towards the end of last year were barely improved upon in January, the US Labor Department reported Friday.

The latest monthly figures showed nonfarm payrolls rose only by 113,000, with 185,000 penciled in by analysts.

With strong job increases in construction, cold weather was not a major factor for the slow pick-up, nurturing fears of a general loss of momentum of the national economy.

CNBC diversifies:

Wealthy avoiding stocks, buying art

Art often imitates stocks—at least when it comes to prices.

But so far this year, stock markets are down and art is up.

Sotheby’s two days of Impressionist, Modern and Surrealist sales racked up £215.8 million (more than $345 million), the highest ever for a sale series in London. All its lots sold. The top was Camille Pissarro’s 1897 painting “Boulevard Montmartre, Matinee de Printemps,” which went for £19.7 million, or about $32 million—nearly double its top presale estimate.

Christie’s had a good week, too, selling Juan Gris’ 1915 still life “The Checked Tablecloth” for $56.7 million. The previous record for a Gris was $28 million. The Impressionist and Modern evening sale totaled $288 million.

Collectible cars are also on a tear. A 1957 Ferrari Testarossa sold in Britain this week for $40 million. And a series of auctions in Paris set a spate of new records for certain cars. RM Auctions gaveled down on a 1955 Jaguar D-Type for about $5 million.

The Project On Government Oversight notes the exceptional:

Head of SEC Given Waiver to Oversee Past Client

Mary Jo White, the head of the Securities and Exchange Commission (SEC), will be allowed to oversee her former client, Credit Suisse, according to a new ethics waiver the U.S. Office of Government Ethics posted to its website this week.

Before coming to the SEC, White, a former attorney at Debevoise & Plimpton, represented Wall Street giants such as UBS and JPMorgan. President Obama nominated her to head the SEC in January 2013.

Her waiver underscores the complications that can often arise when a former white-collar defense attorney becomes a top regulator overseeing an industry she used to represent.

According to the waiver, signed by the SEC’s ethics officer on Feb. 6, White had been prohibited from overseeing Credit Suisse since joining the agency because she provided legal services to the bank during her stint at Debevoise. In the two years prior to her SEC nomination, she “billed in total less than one hour (0.5 hours in January 2012 and 0.4 hours in February 2012) for work on Credit Suisse matters,” the waiver says.

Wrist-slappage from the Los Angeles Times:

Gov. Brown, Newsom to get warning letters from ethics agency

Gov. Jerry Brown and Lt. Gov. Gavin Newsom are among 40 officials receiving warning letters from the state ethics agency after their campaigns received improper contributions from a lobbying firm, representatives said Friday.

A firm headed by Kevin Sloat has reached a tentative agreement with the state Fair Political Practices Commission to pay more than $100,000 in fines involving violations of California’s campaign finance laws, according to sources familiar with the investigation who are not authorized to speak publicly.

The firm Sloat Higgins Jensen and Associates provided prohibited contributions, including expensive wine and cigars, at fundraisers held for elected officials at his Sacramento mansion.

Top-heaviness from The Wire:

Universities Are Cutting Tenured Faculty While They Load Up on ‘Non-Academic’ Administrators

As the cost of college remains exorbitant, recent trends indicate schools in the United States are trading tenured professors for non-academic administrative staff. It’s pretty clear where American colleges have their priorities, and it’s not in academics. Students are paying more to attend schools that are spending less to teach them, and instead spending that tuition money on administration.

According to a new report from the New England Center for Investigating Reporting, “the number of non-academic administrative and professional employees at U.S. colleges and universities has more than doubled in the last 25 years.” Meanwhile, full-time tenured faculty positions are at the lowest rate in 25 years, while the prevalence of adjunct professors – part-time, non-tenured professors – is at its highest. In fact, according to the American Association of University Professors, “more than three of every four (76 percent) of instructional staff positions are filled on a contingent basis,” meaning without tenure.

The reason that non-tenured professors are so much more popular than tenured faculty is simple: they’re cheaper. Adjunct professors, especially, make very little. Most are paid on a per-course basis, making somewhere between $2,000 and $5,000 for each course taught.

Bloomberg Businessweek bemoans:

Mamas, Don’t Let Your Babies Be Born at AOL

AOL Chief Executive Tim Armstrong ruffled more than a few of his employees’ feathers when he disclosed this week that two AOL workers’ “distressed” babies had whacked the company with $2 million in medical bills.

The costly children were cited—along with more than $7 million in costs from the Affordable Care Act—as the reason AOL (AOL) changed its 401(k) account match to an annual lump sum payment. Workers who aren’t on the payroll at year’s end will forfeit AOL’s 3 percent matching contribution to the accounts. IBM (IBM) made a similar change in 2012. If you plan to quit, management thinking goes, forget about collecting our share of your retirement savings.

Many employees didn’t react well to either bit of news, according to news reports. First, there’s the financial blow to workers, who will lose 401(k) funds if they leave AOL, as well as miss the opportunity to have the company’s match bolster their financial returns over a full year. There’s also the shock that accompanies hearing your boss tag a colleague’s difficult pregnancy and her newborn child as the reason your retirement plan was cut.

Stark realization from the Exchange:

Why Walmart is getting too expensive for the middle class

Walmart is struggling with weak sales and an underperforming stock price. The company recently cut its profit outlook, with analysts polled by S&P Capital IQ expecting just a 2.1% gain in sales when Walmart reports its quarterly earnings on February 20. That’s for a company that has consistently outcompeted nearly every other retailer except, perhaps, Amazon. Walmart’s stock has suffered, rising just 4% during the past year, while the S&P 500 index rose 17% during the same timeframe.

Walmart, though known as a discounter, may be too expensive for millions of shoppers finding themselves more pinched — not less — as the pace of the so-called recovery accelerates. “Their consumer is shifting downward,” says Joe Brusuelas, chief economist for financial-data firm Bloomberg LP. “The competition for Walmart is changing. It’s now dollar stores.”

Where some of their money went, via the Los Angeles Times:

Walton group funds more charter schools in L.A. than elsewhere

Los Angeles charter schools have been the largest recipients of funding from the foundation associated with the family that started Wal-Mart, according to figures released Wednesday.

Since 1997, the Arkansas-based Walton Family Foundation has distributed $35.9 million in start-up grants to 159 L.A.-area charters. By comparison, Walton has supported the creation of 125 charters in New York City.

Last year alone, the foundation made grants to 23 new L.A. schools, totaling more than $4.69 million, that were set to open in the near future. Both the annual and cumulative totals are higher than for any other region.

Charter schools are independently managed, free from some rules that govern traditional schools and outside the direct control of the local Board of Education. In California, local school boards are required by law to authorize and oversee all financially viable and academically sound charter school petitions. No school system has more charters than the L.A. Unified School District.

More from Slashdot:

25% of Charter Schools Owe Their Soul To the Walmart Store

Among the billionaires who helped Bill Gates pave the way for charter schools in WA was Walmart heiress Alice Walton. The Walton Family Foundation spent a whopping $158+ million in 2012 on what it calls ‘systemic K-12 education reform,’ which included $60,920,186 to ‘shape public policy’ and $652,209 on ‘research and evaluation.’

Confirming the LA Times’ speculation about its influence, the Walton Foundation issued a press release Wednesday boasting it’s the largest private funder of charter school ‘startups,’ adding that it has supported the opening of 1 in 4 charter schools in the U.S. since 1997 through its 1,500 ‘investments.’

In These Times fuels around:

Angering Environmentalists, AFL-CIO Pushes Fossil-Fuel Investment

Labor’s Richard Trumka has gone on record praising the Keystone pipeline and natural gas export terminals.

Trumka’s comments come at a sensitive time, as trade unions and leading environmental groups have sought to build political partnerships with each other in recent years.

The nation’s leading environmental groups are digging their heels in the sand by rejecting President Obama’s “all-of-the above” domestic energy strategy—which calls for pursuing renewable energy sources like wind and solar, but simultaneously expanding oil and gas production.

But it appears the AFL-CIO, the nation’s largest labor federation, won’t be taking environmentalists’ side in this fight, despite moves toward labor-environmentalist cooperation in recent years. On a recent conference call with reporters, AFL-CIO President Richard Trumka endorsed two initiatives reviled by green groups: the Keystone XL pipeline and new natural gas export terminals.

“There’s no environmental reason that [the pipeline] can’t be done safely while at the same time creating jobs,” said Trumka.

In response to a question from In These Times, Trumka also spoke in favor of boosting exports of natural gas.

Bad news from the Associated Press:

Moody’s downgrades Puerto Rico credit rating

Moody’s Investors Service has downgraded Puerto Rico’s credit rating to junk status.

The announcement Friday by the credit rating agency comes just days after Standard & Poor’s cut the U.S. territory’s debt to junk as well.

Moody’s says its decision was based in part of not seeing sufficient economic growth to help reverse negative financial trends.

News from north of the border via South China Morning Post:

Exclusive: Vancouver facing an influx of 45,000 more rich Chinese

  • Over 60pc seeking Canadian wealthy investor visa are from China and want to live in British Columbia’s main city, data shows

A South China Morning Post investigation into Canada’s immigration programme for millionaire investors has revealed the extraordinary extent to which it has become devoted to a single outcome: Helping rich mainland Chinese settle in Vancouver.

Immigration Department data obtained by the Post suggests there was a backlog of more than 45,000 rich Chinese waiting for approval of their applications to move to British Columbia as of January last year. They are estimated to have a minimum combined wealth of C$12.9 billion (HK$90 billion).

And a complication, also from South China Morning Post:

Canada floats new citizenship rules that could affect thousands of Chinese

  • Longer abode requirement and demand for tax returns may affect thousands of Hongkongers and mainlanders granted permanent residency

Canada has unveiled sweeping reforms that would require immigrants spend more time as permanent residents, file tax returns and sign an undertaking to continue living in the country if they want to become citizens.

The proposed redrawing of the Citizenship Act, unveiled on Thursday, would lengthen the period of residency required from three years to four years.

Language proficiency requirements would be extended to children as young as 14 and adults as old as 64, and penalties for fraudulent applications toughened.

China is the biggest single source of applications for Canadian permanent residency and among those who may be affected by the changes are the 110,813 mainland Chinese and 3,305 Hongkongers granted permanent residency between 2010 and the middle of last year.

And a global alarm from Spiegel:

Troubled Times: Developing Economies Hit a BRICS Wall

  • Until recently, investors viewed China, Brazil and India as a sure thing. Lately, though, their economies have shown signs of weakness and money has begun flowing back to the West. Worries are mounting the BRICS dream is fading.

It was 12 years ago that Jim O’Neill had his innovative idea. An investment banker with Goldman Sachs, he had become convinced following the Sept. 11, 2001 terror attacks that the United States and Europe were facing economic decline. He believed that developing countries such as China, India, Brazil and Russia could profit immensely from globalization and become the new locomotives of the global economy. O’Neill wanted to advise his clients to invest their money in the promising new players. But he needed a catchy name.

It proved to be a simple task. He simply took the first letter of each country in the quartet and came up with BRIC, an acronym which sounded like the foundation for a solid investment.

O’Neill, celebrated by Businessweek as a “rock star” in the industry, looked for years like a vastly successful prophet. From 2001 to 2013, the economic output of the four BRIC countries rose from some $3 billion a year to $15 billion. The quartet’s growth, later made a quintet with the inclusion of South Africa (BRICS), was instrumental in protecting Western prosperity as well. Investors made a mint and O’Neill’s club even emerged as a real political power. Now, the countries’ leaders meet regularly and, despite their many differences, have often managed to function as a counterweight to the West.

On to Europe and uber-bankster empowerment from Reuters:

ECB to gain far-reaching powers as euro zone banks’ supervisor

The European Central Bank will attain significant powers over the euro zone’s commercial banks once it becomes their supervisor later this year, including withdrawing bank licences and assessing acquisitions, it said on Friday.

From November, the ECB will supervise directly around 130 of the bloc’s largest lenders as part of a broader push towards closer integration of Europe’s banks that aims to create a more level regional playing field for the sector.

The region’s other 5,900 or so banks will remain under the brief of national supervisors, though the ECB will have powers to intervene if it deems necessary.

“(The ECB) will be exclusively competent to grant and withdraw authorizations for credit institutions and to assess acquisitions of qualifying holdings in all credit institutions,” it said in a draft document that laid out how the ECB and national supervisors will cooperate under the new Single Supervisory Mechanism (SSM).

Channel NewsAsia Singapore tosses in a monkey wrench:

Germany sends ECB’s crisis-killing action to EU court

Germany’s highest court expressed doubts on Friday about the European Central Bank’s bond-buying programme, credited with stopping the eurozone crisis, and sent the case to the European Court of Justice.

Some analysts suggested that the decision might turn out to be helpful to the central bank.

Back in September 2012, the Constitutional Court had rejected legal challenges by a group of eurosceptics to the two key eurozone crisis tools — the European Stability Mechanism (ESM) and the European fiscal pact.

As a result, German President Joachim Gauck was able to sign those two crisis tools into law.

But the eurosceptics also filed a last-minute challenge to the ECB’s OMT bond purchase programme, arguing that it amounted to monetisation of sovereign debt and overstepped the central bank’s mandate.

The London Telegraph-ic take:

German court parks tank on ECB lawn, kills OMT bond rescue

  • Doubtful whether ECB’s back-stop scheme for bonds can be implemented if Europe’s debt crisis blows up again

Germany’s top court has issued a blistering attack on the European Central Bank, arguing that its rescue plan for the euro violates EU treaty law and exceeds the bank’s policy mandate.

The tough language leaves it doubtful whether the ECB’s back-stop scheme for Spanish and Italian bonds can be implemented if Europe’s debt crisis blows up again, and greatly complicates any future recourse to quantitative easing if needed to head off Japanese-style deflation.

And an affirmation from EUbusiness:

ECB insists bond buying programme ‘within mandate’

The European Central Bank insisted on Friday that its contested OMT bond buying programme did not breach its rules, after Germany’s constitutional court expressed some scepticism.

“The ECB takes note of the announcement made today by the German constitutional court. The ECB reiterates that the OMT programme falls within its mandate,” the central bank said in a short statement.

On to Britain and a disappointment from Bloomberg:

U.K. Manufacturing Rises Less Than Forecast as Growth Eases

U.K. factories increased production by less than forecast in December, suggesting manufacturing is set for steady rather than runaway growth this year.

Output rose 0.3 percent from November, the Office for National Statistics said today in London. That compares with the 0.6 percent median of 26 estimates in a Bloomberg survey. Industrial production, which also includes utilities and mines, climbed 0.4 percent, also less than predicted.

While the U.K. economy expanded at the fastest rate since 2007 last year, industry surveys on services and manufacturing this week suggested the pace may have eased at the start of 2014. The Bank of England kept its key policy rate at a record-low 0.5 percent yesterday, while a report from the National Institute of Economic and Social Research today says consumer spending and a buoyant housing market will drive growth.

The Guardian has guilty knowledge:

Bank of England ‘knew about’ forex markets price fixing

  • Notes from 2012 meeting reportedly show key Bank officials were told of rival currency dealers’ sharing of customer orders

The Bank of England has been dragged into the mounting controversy over allegations of price fixing in the £3tn-a-day foreign exchange markets after it emerged that a group of traders had told the Bank they were exchanging information about their clients’ position.

The latest twist in the unfolding saga – already the subject of investigations by regulators around the world – puts the focus on a meeting between key officials at the central bank and leading foreign exchange dealers in April 2012, when they discussed the way they handled trades ahead of the crucial setting of a benchmark in the prices of major currencies. This benchmark is used to price a wide variety of financial products and is the subject of regulators’ attention amid allegations that traders at rival banks were sharing information about their orders from clients to manipulate the price.

New Europe complicates frack-tiosly:

Shale Gas Fear Leaves UK Vulnerable

Cuadrilla Resources, one of the energy firms hoping to exploit the UK’s shale gas resources, has announced two new exploration sites in Lancashire. But drilling for shale gas in Britain is going to be extremely controversial.

“There is potential but the level of public reaction to it is extremely negative at the moment and anybody trying to carry even testing at the moment is finding a lot of demonstrations,” Justin Urquhart Stewart, Director of Seven Investment Management in London, told New Europe on 7 February, adding that the government of British Prime Minister David Cameron is going to find it very difficult to actually get it through. “The potential is there but realistically I think they’re going to run into a lot of public concern unless it can be proven not to be dangerous to local communities,” Urquhart Stewart said. Unlike America, Britain is a crowded island and has a much bigger impact on a smaller area, he said.

From The Guardian, a land rush:

Fresh wave of super-rich looking to buy up London properties, says estate agent

  • Political and economic instability driving rise in inquiries from Brazil, Argentina, Ukraine and elsewhere, reckons Frank Knight

Political and financial upheaval in some of the world’s largest emerging economies is driving a wave of rich migrants to London to park their wealth in the city’s property market, according to data from a leading estate agency.

Knight Frank, a specialist in upmarket properties, said on Friday that online inquiries from Argentina, Ukraine and Turkey have soared during the past year.

“There is potentially a further wave of investment headed for the prime central London property market,” said Tom Bill of the firm’s residential research team.

The Observer covers austerian reality:

Changes to state pensions will hit the poorest, warns think tank

  • Inequalities set to grow as people in the most deprived parts of the country live healthy lives 20 years shorter than the average

Changes to the state pension age will only expand the already yawning gap between rich and poor in Britain, according to an academic study.

Inequalities are set to grow because of the failure to take into account differences in health and life expectancy across the country, says the report from independent think tank the International Longevity Centre – UK and backed by the charity Age UK.

While most people will live to state pension age and beyond, a large proportion are unlikely to get there in good health, especially in more disadvantaged parts of the UK – places like inner city Glasgow, where the healthy life expectancy is just 46.7 years – close to 20 years lower than the national average of 65.

BBC News embarrasses:

Immigration minister Mark Harper quits over cleaner’s visa

Immigration minister Mark Harper has resigned from the government after it emerged his cleaner did not have permission to work in the UK.

Mr Harper notified Prime Minister David Cameron, who accepted his resignation “with regret”, Number 10 said.

It added there was “no suggestion” the 43-year-old Conservative MP for the Forest of Dean had “knowingly employed an illegal immigrant”.

Fellow Tory James Brokenshire has been appointed the new immigration minister.

The Observer has frustrations:

Nick Clegg: Britain must join debate on new approach to war on drugs

  • Deputy PM angry at Tory refusal to debate alternatives and says: ‘If you are anti-drugs, you should be pro-reform’

Nick Clegg has dragged the case for reforming the drugs laws to the centre ground of British politics, saying that blanket prohibition has seen cocaine use triple in less than 20 years, a trend that has helped perpetuate conflict and violence in South America.

Writing in today’s Observer, after a week in which he visited Colombia to learn first-hand the devastating effects that Europe’s enthusiasm for cocaine has had on the country, Clegg said the UK needed to be at the heart of the debate about potential alternatives to blanket prohibition and that he wanted to see an end to “the tradition where politicians only talk about drugs reform when they have left office because they fear the political consequences”.

The deputy prime minister said such an approach “has stifled debate and inhibited a proper examination of our approach. Put simply, if you are anti-drugs, you should be pro-reform”.

On to the Emerald Isle and a neoliberal endorsement from the Irish Times:

Taoiseach defends corporate tax policy at OECD

  • Kenny shrugs off French anger at loss of internet companies and backs efforts to close tax loopholes

Taoiseach Enda Kenny, Tánaiste Eamon Gilmore and the four Cabinet Ministers who flew on the government jet to Paris yesterday did not see a single member of the French socialist government.

Instead, they spent the day at the Organisation for Economic Co-operation and Development, that hotbed of liberal economics, at a sensitive time in Franco-Irish relations. The US internet giant Yahoo had just announced it is transferring financial operations from France to Ireland.

Asked about Yahoo’s defection, President François Hollande said “we must act” against “big companies who move to countries with low corporate tax”. He promised to raise the subject with President Barack Obama in Washington next week.

On to Germany and a case of bad heilth from Deutsche Welle:

German newspaper report highlights right-wing crime in Germany

  • More than 11,000 right-wing criminal offenses were committed last year, according to a report by a German newspaper. Of those cases, more than 500 were violent.

German police registered 11,761 criminal offenses motivated by right-wing extremism between January and December of 2013, Berlin’s Tagesspiegel newspaper reported on Friday. Of the reported cases, 574 were violent offenses that resulted in injuries to 561 people, according to Tagesspiegel.

Of the 5,631 suspects in the offenses, 126 people were arrested. In 11 cases, warrants were issued. Some 788 cases were reported as being of an anti-Semitic nature, including 32 cases of assault and other violent crimes.

According to the newspaper, the figures come from monthly inquiries by the Bundestag’s Vice President Petra Pau and her Left Party parliamentary faction. With the release of the December figures, a complete look at the last year is now available.

Tagesspiegel said, however, the actual number of right-wing criminal offenses for 2013 is expected to climb, as many incidents are registered after the fact. In 2012, the total number was initially listed as 11,660, but late registrations ended up driving the total up to 17,134.

TheLocal.de boosts the books:

German trade surplus hits record level

Germany’s trade surplus soared to a new record high in 2013, although export momentum tailed off at the end of the year, official data showed on Friday.

Europe’s biggest economy notched up a trade surplus of €198.9 billion in 2013, the highest since foreign trade data have been compiled.

In 2012, the surplus had stood at 1€89.8 billion.

Germany has come under fire for its booming trade surplus, with critics arguing that its economic prowess comes at the expense of the eurozone’s weaker members.

On to France and the rural right from France 24:

France’s National Front courts the rural vote

As municipal and European elections approach, France’s far-right party the National Front is poised for another strong showing. Rural areas are key to the party’s strategy: economic decline and feelings of neglect in the countryside have been fuelling the National Front’s renaissance.

Our assignment was to understand why the far-right is making strides in rural areas. So we headed out for the “Meuse”, a department in the east of France where the party traditionally does well.

To our initial surprise, villagers readily expressed their support for the National Front, even on camera. “We’re 100 percent for Marine Le Pen around here”, smiled one supporter as we approached. “I’m not afraid to say so, and I always will!”

Reuters turns the coat:

Special Report: Francois Hollande puts on a new political face

As Hollande heads without a First Lady to the United States on Monday, he is projecting a more business-friendly persona than the “regular guy” left-winger France chose in May 2012 to replace conservative ex-President Nicolas Sarkozy.

Several people who know Hollande say that, deep down, he has always been more of a centrist, who had calculated that he should present himself as a man of the left to win election.

“This is not so much a U-turn as a self-revelation. He has finally outed himself,” said Serge Raffy, author of the 2011 Hollande biography “Itineraire secret” (Secret Route).

Switzerland next and a defining vote from Deutsche Welle:

Referendum to keep foreigners out of Switzerland?

  • On Sunday, the Swiss vote on whether to restrict immigration to their country. The ramifications of a yes vote, experts say, could be huge. To their shock, the referendum has a decent shot at passing.

When Germans hear Switzerland, they first think of the children’s book “Heidi”, snow-covered mountains and secure bank accounts. Their neighbor to the south is a popular vacation destination, but more and more Germans also come to Switzerland to work. They can do so because the small, neutral state entered a freedom of movement agreement with the European Union in 1999. Even though Switzerland isn’t a member of the union, EU citizens have been allowed to immigrate to Switzerland with hardly any restrictions since then.

That might change soon. In a nationwide referendum, the Swiss are voting on an “initiative against mass-immigration” this Sunday (09.02.2014). The initiative was put forward by the nationalist-populist Swiss People’s Party (SVP). The party wants to restrict the number of immigrants and allocate a limited number of slots to certain national or occupational groups.

Roughly 80,000 immigrants enter Switzerland every year – and this in a country of 8.1 Million. According to the German weekly “Die Zeit”, this is the largest population growth the country has experienced since the 1960s.

On to Iberia and austerian woes from thinkSPAIN:

More firms and individuals in Spain declared insolvent last year than ever before in history

A RECORD number of companies and sole traders went into receivership or were declared bankrupt last year – a total of 9,660, which is the highest ever seen since bankruptcy became legally-recognised 10 years ago.

This represents a rise of 6.5 per cent on the figure for 2012, and never before have this many insolvencies been declared in the space of a year in Spain, according to the National Institute of Statistics (INE).

In the first three years after the Insolvency Law was passed in 2004, up to and including 2007 there were between 968 and 1,147 firms going bankrupt or into receivership each year, but this shot up to 3,298 with the start of the financial crisis.

This again nearly doubled in 2009 when the recession and mass unemployment began to truly bite in Spain, reaching 6,197 that year, dropping slightly to 5,962 in 2010 but then soaring again in 2011 to 6,863. However, the last two calendar years have seen a sharp increase, with insolvencies shooting up by over 50 per cent.

The Associated Press takes a turnabout:

Spain to restore nationality to Sephardic Jews

Spain has announced new measures to speed up the naturalization of Jews of Sephardic descent whose ancestors fled the Iberian peninsula five centuries ago when they were told to convert to Catholicism or go into exile.

The Cabinet approved a bill amending previous legislation that granted nationality by naturalization to Sephardic Jews who chose to apply for it. The reform will allow dual nationality, enabling people who can prove Sephardic ancestry to also retain their previous citizenships.

Justice Minister Alberto Ruiz-Gallardon said Friday the measure smooths the bureaucracy involved in obtaining Spanish nationality.

Italy next, and corruption with a flair from TheLocal.it:

Space boss quits over tango dancer scandal

The head of Italy’s space agency submitted his resignation on Friday after a scandal over dubious expenses including hiring as a consultant a former tango dancer with no apparent aerospace credentials.

Enrico Saggese in a statement denied the accusations and said that he wanted to step down “so as to better defend my integrity, honour and prestige”.

Prosecutors opened an investigation on Thursday into corruption, including Saggese’s use of a credit card provided by an agency subcontractor.

They are also looking into consultancy fees paid to the wife of an employee to provide “psychological assistance” and expense-paid trips to the United States for several managers of the space agency.

After the jump, the latest Greek disasters, Ukrainian turmoil, class war in Brazil, Argentine anger, a Latin American plague, Pakistani stalemate, the latest Thai violence, Vietnamese letdown, Chinese uncertainty, an Abenomics fail, environmental woes, and the latest Fukushimapocalypse Now!. . . Continue reading

Headlines of the day I: Spies, lies, & judges


We begin today’s collection of posts from the world of espionage, national security, and militarism with a judicial decision from the McClatchy Washington Bureau:

Secret court approves phone surveillance changes

National intelligence chief James R. Clapper said Thursday that the Foreign Intelligence Surveillance Court had approved two limits on how the government can use huge volumes of data it collects about Americans’ phone use. . .

Under the first change, Clapper said, the massive caches of phone records can be searched only after a court finds that there is “a reasonable, articulable suspicion that the selection term is associated with an approved international terrorist organization.”

That limitation will be in place “absent a true emergency,” Clapper said without elaboration.

The second change requires that the data query results “be limited within two hops of the selection term instead of three.”

Another country, another decision sure to provoke from El País:

High Court to follow through on arrest warrants against top Chinese officials

  • Former president Jiang Zemin and ex-PM Li Peng wanted for human rights abuses in Tibet

Despite global pressure and objections by prosecutors, the High Court on Thursday said it would go ahead with its international arrest warrants for former Chinese President Jiang Zemin, ex-Prime Minister Li Peng and a host of other officials from China, who are wanted for human rights abuses in Tibet.

The warrants, which were ordered by Judge Ismael Moreno on November 18, are the subject of a diplomatic row between Spain and China in which Beijing has been pressuring the conservative Popular Party (PP) government to step in and block the High Court’s investigation into allegedly genocidal policies applied in Tibet.

Last month, the (PP) filed a bill in Congress to restrict the Spanish judiciary from carrying out international prosecutions based on the universal justice doctrine. The proposed reform to the judicial code has come under fire by the opposition, legal experts and human rights organizations which fear that it will affect future cases involving drug traffickers, child abuse, gender violence and female mutilation.

And yet another judicial finding via Techdirt:

Court Says FBI Agent’s Wrong Checkmark Put Woman On No Fly List, Barred Her From The US For 10 Years

  • from the ouch dept

We’ve been covering the case of Rahinah Ibrahim for a little while now. She’s the Stanford PhD student who was wrongfully placed on the no fly list — something that pretty much everyone admitted early on — but because of that her student visa to the US was pulled, and every attempt she made to come back was rejected, leaving her unable to come back to this country for nearly 10 years. As we noted last month, it seemed clear that Judge William Alsup had ruled that the feds needed to remove her from the no fly list and any other terrorist watch lists, but it was a little unclear, since the full ruling remained under seal. That ruling has now been released in redacted form, and is well worth reading. Not only does it highlight massive bureaucratic bungling over a ten-year period, it also shows how disingenuous and dishonest the DOJ has been in handling the entire case — even to the point of promising not to argue “state secrets” to kill the case, and then (of course) claiming “state secrets” and trying to kill the case just a few weeks later. Judge Alsup appears somewhat limited in what he can do in response to all of this for procedural reasons, but he makes it clear that he’s not pleased about all of this and orders the government to confirm that Ibrahim has been fully removed from the various terrorist databases and lists, as the government has flatly admitted that they don’t believe she poses any threat to national security.

More blowback from that leaked telephonic ambassadorial diatribe from BBC News:

Victoria Nuland gaffe: Angela Merkel condemns EU insult

Germany’s Angela Merkel has said a US official’s apparent insult of the EU’s efforts to mediate in the Ukraine crisis is “totally unacceptable”.

Victoria Nuland has apologised after she referred disparagingly to the EU’s role during a conversation said to be with the US ambassador to Ukraine. A recording of the exchange was posted online, with the US hinting at Russia’s involvement in bugging and leaking it.

The EU and US are involved in talks to end months of unrest in Ukraine. The conversation between Ms Nuland and Mr Pyatt reveals deeper tensions between America and Europe.

Washington seems to prefer a deal brokered by the UN rather than Brussels. If true, that would bruise the feelings of EU officials. They believe this is their crisis to solve.

Today’s comments and accusations are a reminder that this crisis is far from over and that it has the potential to cause division and tension even between allies. In Kiev, Ms Nuland – an assistant secretary of state – said she would not make a public statement on the matter.

Assurances from EUbusiness:

US diplomatic chats safe, State Department says

  • Secret US diplomatic conversations are safe, a top official said Friday, despite the apparent bugging of an American envoy’s phone.

Asked if she was confident about the security of diplomatic communications, State Department spokeswoman Jen Psaki replied: “Certainly we are.”

“We do indicate and make clear when there are concerns about when information can be tapped. So we’re cognizant of this. We’re aware of this. And we are constantly taking precautions and updating our approach.”

She revealed that data encryption is given to all State Department employees for their government-issued BlackBerry mobile phones.

And a very relevant question from the McClatchy Foreign Staff:

Post-Snowden, why were U.S. diplomats talking on insecure line?

[H]ere you have two high-ranking American officials – Nuland and U.S. Ambassador to Ukraine Geoffrey Pyatt – discussing sensitive matters apparently on an unsecured line, just days after a similar call had been recorded and, embarrassingly, put online.

Nuland, who refused to comment on the specifics of a conversation meant to be private, did note during a news conference Friday in Kiev that the static-free recording “was pretty impressive tradecraft. The audio was pretty clear.”

But she didn’t address why she was exposing herself to the obvious threat of being recorded. In the wake of the NSA spying scandal, the U.S. administration has repeatedly defended its actions using the line of reasoning: “Everybody does it.”

But if everybody does it, why wasn’t Nuland more careful, especially since it’s pretty well-known that the Russians don’t like her very much?

China Daily has Swiss NSA blowback:

Swatch CEO ticked off about NSA spy scandal

The eccentric chief executive officer of Swatch Group, one of the world’s top watchmakers, was so incensed by recent allegations of mass U.S. spying that he chastised a top New York official over the matter in a letter late last year.

Nick Hayek’s comments seemed odd coming in response to a letter from New York State Comptroller Thomas DiNapoli, who administers the state’s $161 billion pension fund.

DiNapoli had asked Hayek and nine other Olympic sponsors to take a stance against Russia’s recent clampdown on gays ahead of the winter games in Sochi.

Most corporate executives balk at open political conflict. But not the cigar-chomping Hayek. He vigorously defended his Omega subsidiary’s role as a politically neutral timekeeper at the Olympics. And that’s not all. He also gave DiNapoli a dressing down over the spying scandal surrounding the U.S. National Security Agency.

From France, another online governmental mobilization from RFI:

France launches cyberdefence programme

France is to invest a million euros in cyberdefence to combat a mushrooming number of cyberattacks, Defence Minister Jean-Yves Le Drian announced on Friday. The country was the target of nearly 800 significant cyberattacks in 2013, he said.

“I want speedy results,” Le Drian declared at the launch of his Cyberdefence Pact 2014-2016 in the Brittany town of Cesson-Sévigné.

There were more than 780 “significant attacks” in 2013, he revealed, up from 420 in 2012, and they are becoming “more and more varied, complex and diffuse”.

So cyberdefence has become one of the top priorities of the French military’s 2014-2019 programme and a budget of about a billion euros will be allocated to it.

And the latest Snowden revelations with an Old Blighty focus from NBC News:

Snowden Docs: British Spies Used Sex and ‘Dirty Tricks’

British spies have developed “dirty tricks” for use against nations, hackers, terror groups, suspected criminals and arms dealers that include releasing computer viruses, spying on journalists and diplomats, jamming phones and computers, and using sex to lure targets into “honey traps.”

Documents taken from the National Security Agency by Edward Snowden and exclusively obtained by NBC News describe techniques developed by a secret British spy unit called the Joint Threat Research and Intelligence Group (JTRIG) as part of a growing mission to go on offense and attack adversaries ranging from Iran to the hacktivists of Anonymous. According to the documents, which come from presentations prepped in 2010 and 2012 for NSA cyber spy conferences, the agency’s goal was to “destroy, deny, degrade [and] disrupt” enemies by “discrediting” them, planting misinformation and shutting down their communications.

Both PowerPoint presentations describe “Effects” campaigns that are broadly divided into two categories: cyber attacks and propaganda operations. The propaganda campaigns use deception, mass messaging and “pushing stories” via Twitter, Flickr, Facebook and YouTube. JTRIG also uses “false flag” operations, in which British agents carry out online actions that are designed to look like they were performed by one of Britain’s adversaries.

The Wire recalculates:

The NSA’s Phone Metadata Connect-The-Dots Program Only Collects 30 Percent of Calls

Lost in the pre-Christmas blur was an NBC News interview with one of the members of the group President Obama tasked with reviewing the government’s surveillance toolkit. In that interview, Geoffrey Stone suggested that the agency’s metadata collection was deliberately incomplete. “Asked if the NSA was collecting the records of 75 percent of phone calls, an estimate that has been used in briefings to Congress,” NBC’s Michael Isikoff reported, “Stone said the real number was classified but ‘not anything close to that’ and far lower.”

Now The Washington Post puts a number on that: 30 percent.

In 2006, the officials said, the NSA was collecting nearly all records about Americans’ phone calls from a number of U.S. companies under a then-classified program, but as of last summer that share had plummeted to less than 30 percent.

There are a few reasons offered for the gap. One rationale offered from “industry officials” is that the increase in internet-based calling would mean that the NSA loses a significant portion of calls. Stone suggested another reason: culling records from smaller cell phone providers wasn’t “cost effective” for the agency, so it didn’t bother.

And The Guardian looks at another spook shop:

CIA confirms agency obliged to follow federal surveillance law

  • Law concerns financial information and government hacking
  • Motive for question at Senate committee not known

The CIA has confirmed that it is obliged to follow a federal law barring the collection of financial information and hacking into government data networks.

But neither the agency nor its Senate overseers will say what, if any, current, recent or desired activities the law prohibits the CIA from performing – particularly since a section of the law explicitly carves out an exception for “lawfully authorized” intelligence activities.

The murky episode, arising from a public Senate hearing on intelligence last week, illustrates what observers call the frustrations inherent in getting even basic information about secret agencies into public view, a difficulty recently to the fore over whistleblower Edward Snowden’s revelations about the National Security Agency (NSA) and its surveillance partners.

Jeepers! Peepers. From the always hyperbolic London Daily Mail:

The spy who scrubbed me: Russian official lets slip that Sochi hotels have hidden surveillance cameras in the SHOWERS

  • Deputy prime minister: I have seen video from inside cubicles
  • Dmitry Kozak claimed the footage showed journalists sabotaging facilities
  • The chief of Olympic preparations had tried to down play criticism of venue
  • Officials quickly try to backtrack and issue hasty denial

Russia’s Dmitry Kozak, deputy prime minister responsible for Olympic preparation, revealed that authorities have video from hotels showing that people leave the water on.

The astonishing revelations came when Mr Kozak was confronted by journalists about the poor state of facilities around the Olympic Village.

Reuters escalates:

Exclusive: Pentagon to boost missile defense spending by over $4 billion: sources

The U.S. Defense Department plans to ask Congress for $4.5 billion in extra missile defense funding over the next five years as part of the fiscal 2015 budget request, say congressional sources and an expert.

Nearly $1 billion of that sum will pay for a new homeland defense radar to be placed in Alaska, with an additional $560 million to fund work on a new interceptor after several failed flight tests, said Riki Ellison, founder of the nonprofit Missile Defense Advocacy Alliance, and two of the congressional sources, who were not authorized to speak publicly.

The Pentagon’s request for added funding comes despite continued pressure on military spending and cuts in other arms programs, a sign of Washington’s growing concern about missile development efforts by North Korea and Iran, the sources said.

And Press Trust of India tenses up:

Iran sending warships close to US maritime borders

A senior Iranian naval commander says his country has sent several warships to the Atlantic Ocean, close to US maritime borders for the first time.

The commander of Iran’s Northern Navy Fleet, Admiral Afshin Rezayee Haddad, is quoted by the official IRNA news agency as saying today that the vessels have already begun the journey to the Atlantic Ocean via waters near South Africa.

After the jump, the latest Asian crises [cybernetic, geographic, historic, and purely political], corporations snooping and snooped, sins confessed, warnings mandated, mysterious mail, and more. . . Continue reading

Headlines of the day II: EconoEuroSinoFukuFuel


We begin our collection of headlines form the economic, political, and environmental realms with a new reality from CNBC:

More men in their prime working years lack jobs, says WSJ

A large number of men who are still in their prime working years find themselves without jobs for extended periods, despite an improving economy, according to a piece in The Wall Street Journal.

The trend has been building for decades. The percentage of unemployed men 25 to 54 more than doubled between the early 1970s and 2007, from 6 percent to 13 percent, before jumping to 20 percent in the depths of the recession in 2009, according to the article.

As of December 2013, 17 percent of men are not working. Of that group, about two-thirds are not looking for work, which excludes them from the government’s official unemployment numbers.

Economists were alarmed to learn that 40 percent of those looking have been out of work for six months or more, according to the Journal. Some had expected employment figures to rebound to pre-recession levels, but the trend is actually getting worse.

One response, via The Hill:

Senate rejects jobless benefits

Senate Republicans on Thursday blocked Democrats’ third attempt to pass an extension of federal unemployment benefits.

The Senate voted 58-40 Thursday on a proposal that would have continued unemployment insurance for three months, just short of the 60 votes needed to end debate.

“I’m beginning to believe there is nothing that will get Republicans to yes,” Senate Majority Leader Harry Reid (D-Nev.) said. “It’s a ‘no’ vote because they don’t want to extend unemployment insurance.”

Any excuse to gut environmental laws, via Salon:

House GOP overrides Endangered Species Act protections to pass California water bill

  • The bill would undermine years of conservation efforts in Northern California

Republicans in the House of Representatives passed a bill Wednesday that would override federal rules and protections in California to allocate more water to farmers.

It would allow state and federal officials to pump more water out the San Joaquin-Sacramento River Delta in Northern California, a source of drinking water to 22 million Californians and home to endangered salmon, in what Gov. Jerry Brown called “an unwelcome and divisive intrusion into California’s efforts to manage this severe crisis” and Rep. John Garamendi (D) referred to as “a theft of water from someone to give to somebody else, plain and simple.”

CNBC shivers in anticipation:

Hedge funds bet on US gas shortage as cold boosts demand

An unexpected fear haunts the land of the shale bonanza story: running low on natural gas.

Furnaces, utilities and power plants have guzzled trillions of cubic feet of the fuel as the U.S. slogs through what may be recorded as the coldest winter since the invention of gas futures in 1990.

Hedge funds are now betting the country will face a critical shortage before spring. The wager comes with long odds but a huge possible payout.

“It’s been a relentless cold,” says Eric Bass, managing partner at Velite Benchmark Capital Management, a Houston gas hedge fund. “This market has slowly started to realize there could potentially be an inventory problem.”

From Al Jazeera America, Banksters Behaving Badly™:

Banks under investigation for alleged currency exchange rate-fixing

  • Barclays, Goldman Sachs among institutions being investigated for allegedly manipulating foreign exchange markets

New York state’s financial regulator has opened an investigation into alleged manipulation of foreign exchange markets and is demanding documents from more than a dozen banks, a source familiar with the investigation told Al Jazeera.

Barclays, Lloyds Banking Group, Goldman Sachs and a number of other large banks that the Department of Financial Services regulates will be investigated in the probe, the source said.

Authorities in the U.S., Britain, Switzerland, Hong Kong and Singapore have opened probes into whether the large banks manipulated foreign exchange rates used to set the value of trillions of dollars of investments.

Investigators suspect that traders from different banks may have used chat rooms to share information about trades in ways that benefited their positions.

Profligacy from The Guardian:

National lab in California scolded over Lusitania project

  • $80,000 in taxpayer money spent to help National Geographic with documentary about sinking of the ship during WWI

A federal watchdog agency reprimanded a national lab in Northern California for spending more than $80,000 in taxpayer money to help National Geographic with a documentary film about the sinking of the ship Lusitania during World War I.

The Energy Department’s inspector general said in a report issued last week that Lawrence Livermore National Laboratory improperly used its licensing and royalty fees to perform tests for the documentary and should not have done the work.

“Federal officials at Livermore knew about it and didn’t take any action,” said Rickey Hass, a deputy inspector general at the Energy Department. “The work itself was not really the issue, but it was inappropriate in that it may have competed with private sector organizations and was funded with money that should have not been used for that purpose. It also wasn’t necessarily reported with complete transparency.”

NBC News greens the green:

Pot buyers add more than $1M to Colorado tax coffers

In the first month of legal recreational marijuana sales in Colorado, retailers who shared their proprietary data with NBC News say they have collected $1.24 million in tax revenue.

Half of the state’s 35 licensed recreational retailers participated in the NBC News survey. The 18 retailers shared the first 27 days of their tax data because they say they believe it will help their image.

In the first month of operation, sellers of recreational marijuana are doing brisk business in Colorado. One seller said she averages about $20,000 a day in sales.

Blowback from Channel NewsAsia Singapore:

India warns US of consequences on visa reform

India has warned the United States of consequences for its companies if lawmakers tighten visa rules on high-tech firms as part of an immigration overhaul.

Ambassador Subrahmanyam Jaishankar said that India would see a decision to restrict certain temporary visas for skilled workers as a sign that the US economy is becoming less open for business.

“We think this is actually going to be harmful to us. It would be harmful to the American economy and, frankly, it would be harmful to the relationship” between the two countries, Jaishankar told AFP in an interview.

Sensible advice from Salon:

Elizabeth Warren calls on Obama to nominate fewer corporate judges

  • Massachusetts’ senior senator promotes more professional diversity in U.S. courts

Speaking at an event hosted by the left-leaning Alliance for Justice, an association of more than 100 groups who work on improving the justice system, Democratic Sen. Elizabeth Warren criticized President Obama for putting forward so many judicial nominees whose prior experience was mainly with big firms representing corporations.

“We face a federal bench that has a striking lack of diversity,” said Warren. “President Obama has supported some notable exceptions but … the president’s nominees have thus far been largely in line with the prior statistics.”

Repeating points made in the AFJ’s recent report on the federal judiciary’s excess of former corporate lawyers, Warren noted that 71 percent of Obama nominees’ prior experience was chiefly defending corporations. Just 3.6 percent of Obama’s nominees, according to the report, have previously worked mainly for public interest organizations.

Warren warned that, in America, “Power is becoming more and more concentrated on one side.” She recommended “professional diversity” in the judiciary, saying it would be “one way to insulate the courts from corporate capture.”

Heading north of the border with capital flight woes of another kind from South China Morning Post:

Exclusive: How mainland millionaires overwhelmed Canada visa scheme

Mainland millionaires swamped HK consulate with applications and led to freezing of world’s most popular investor immigration scheme

Canadian immigration department spreadsheets obtained by the Post show how the huge number of applications forced the government in Ottawa to freeze the world’s most popular wealth-based migration scheme. One document, dated January 8 last year, showed there was a backlog of 53,580 Hong Kong-based applications for Canadian federal investor visas.

That represented more than 70 per cent of the global backlog. And attempts by Ottawa in 2010 to tighten access to the coveted visas by doubling the wealth criteria had the effect of increasing Chinese domination. In 2011, applications sent to the Hong Kong consulate made up 86 per cent of the global total.

Analysis of arrival data suggests that about 99 per cent of applications in Hong Kong were lodged by mainlanders. Under the scheme’s current limits, applicants worth at least C$1.6 million (HK$11.2 million) receive residency if they “invest” C$800,000 in the form of a five-year interest-free loan to Canada.

On to Europe, first with BBC News:

ECB rejects deflation fears as it holds rates at 0.25%

The head of the European Central Bank (ECB) has said deflation is not a threat to the eurozone economy.

The ECB kept its benchmark interest rate at 0.25% after its latest meeting. The rate was cut to its current record low in November.

ECB president Mario Draghi said: “We have to dispense with this idea of deflation. The question is – is there deflation? The answer is no.”

Eurozone inflation slowed to 0.7% in January from 0.8% in December. The figure fuelled worries about whether the euro bloc could suffer deflation, potentially de-railing economic growth.

Another take from the London Telegraph:

Split ECB paralysed as deflation draws closer, tightening job vice in southern Europe

  • Mario Draghi said the ECB’s council had discussed a wide range of measures but needed more information

The European Central Bank has brushed aside calls for radical action to head off deflation and relieve pressure on emerging markets, denying that the eurozone is at risk of a Japanese-style trap.

Yields on German two-year notes almost doubled to 0.12pc as markets slashed expectations for future rate cuts, while the euro spiked 1.5 cents to more than $1.36 against the dollar, implying a further tightening of monetary conditions for Europe.

Mario Draghi, ECB president, said the bank is “alert to the risks, and stands willing and ready to act” if inflation falls even further below target or if the fragile recovery falters, but offered no clear guidance on future policy.

The Guardian hasn’t recovered:

Real wages likely to take six years to return to pre-crisis level

  • Average wages are at 2004 levels and it will take until six years before they return to 2009 peak according to leading thinktank
  • The Governor of Britain’s Bank of England, Mark Carney, speaks

Britons will have to wait six more years before their inflation-adjusted wages are back at pre-crisis levels and it “feels” like recovery, a leading thinktank has warned.

Average real wages are still at 2004 levels and it will take until 2020 before they return to their 2009 peak, according to the National Institute of Economic and Social Research (NIESR).

“It’s a long way off,” said Simon Kirby, principal research fellow at the thinktank. “It will take a number of years before people actually start to feel the recovery.”

The gradual rise in wages could take even longer if Britain’s productivity performance, which has been “abysmal” in recent years, did not improve, he said.

BBC News splits:

Divorce rate up ‘because of recession’, report says

  • A wedding ring on the bible The recession of 2008/9 could be to blame for more marriages failing

The divorce rate in England and Wales has gone up, possibly because of the last recession, according to a report.

The Office for National Statistics (ONS) said there were 118,140 divorces in 2012, up 0.5% on 2011.

Between 2003 and 2009 there was a general downward trend in the number of divorces, but in 2010 they rose 4.9%.

“One theory suggests recession could contribute to a rise in partnership break-ups because of increased financial strain,” the report says.

Off to Iceland and an immigration crisis denied via the Reykjavík Grapevine:

Minister Dismisses Ministry Employee Requests For Independent Investigation

Minister of the Interior Hanna Birna Kristjánsdóttir has allegedly denied requests from ministry staff for an independent investigation of the ministry over a leaked memo regarding a Nigerian asylum seeker.

DV reports that several ministry employees approached the minister with the suggestion that an independent investigator be brought in to examine the ministry with regards to the case of Tony Omos, a Nigerian asylum seeker who, along with the expecting mother of his child, Evelyn Glory Joseph, had his reputation impugned by a memo which leaked to certain members of the press last November. The memo made allegations about Tony and Evelyn which later proved to be untrue.

The minister allegedly told the employees who requested the independent investigation that this was not going to happen. Ministry employees are reportedly unhappy with the minister and her assistants over the matter.

The uncuttest kind of all from TheLocal.no:

Norway politician wants jail for circumcisers

A leading politician for Norway’s Centre Party has stepped up calls for a ban on ritual male circumcision, or failing that up to 10 years in prison, for those who botch the operation, as the government debates a proposed new law on the practice.

Jenny Klinge, the party’s justice spo complained about the stark difference in penalties under law for those who injure children through female genital mutilation and those who injure them through circumcision.

“It can not be such that when a boy dies, then it’s not punished at all, while if a girl dies it’s punishable by up to 10 years,”  Klinge said in parliament, according to NRK.

She called again for a ban, but said that failing that significant penalties should be put in place for those who injure children during the operation.

Danish austerity strikes again,, via the Copenhagen Post:

Parliament expected to end EU insurance coverage

  • As of August, CPR card will no longer cover Danish residents in other EU countries

You may want to be more careful on future trips to other EU countries. Today, parliament is expect to abolish the public travel insurance provided by the yellow health insurance card. According to DR Nyheder, a large majority will vote in favour of the bill, which then will come into effect by August.

When the proposal is passed, Danish residents will no longer have all their medical expenses paid when visiting another EU country. Instead they will fall under the same regulations as citizens of the respective country. To avoid unexpected medical bills on your next holiday in Europe, it will therefore be necessary to take out your own health insurance.

Nexit news from DutchNews.nl:

Leaving the EU would boost Dutch economy, report for PVV says

Leaving the European Union would boost the Dutch economy, Geert Wilders, leader of the far-right PVV, said on Thursday, quoting a study drawn up by a UK agency.

The Capital Economics report says leaving the EU would allow the Netherlands to increase its prosperity in a way only possible in the distant past. Economic growth figures would be higher than if the Netherlands remains in the EU, the report states.

The Netherlands would no longer be tied to EU rules and requirements, allowing a freer hand to trade with other countries. Gross Domestic Product would be between 10% and 12% higher by 2035 if the Netherlands left the EU, Capital Economics said.

EurActiv rebuts:

Dijsselbloem counters Wilders’ EU exit claim

Dutch Finance Minister Jeroen Dijsselbloem, who also heads the Eurogroup, has hit back at far-right politician Geert Wilders’ claim that leaving the European Union would be good for the Dutch economy.

“The Netherlands is an economic powerhouse in Europe. We earn the bulk of our money in trade with EU countries so the Netherlands has a lot of interest in a single market with easy trade,” Dijsselbloem told local media, adding that quitting the EU would be “very unwise”.

On to Germany and a case of the Benz from TheLocal.de:

Daimler enjoys record €9 billion profit

Luxury auto maker Daimler said on Thursday that it achieved record sales and profits in 2013, and it expects to achieve “significant” growth again this year.

“Daimler concluded the year 2013 with record levels of unit sales, revenue, EBIT [earnings before interest and tax] and net profit,” the car maker said in a statement.

“The company anticipates renewed growth in 2014,” it added.

Net profit climbed by 28 percent to €8.72 billion and underlying profit, as measured by earnings before interest and tax, was up 23 percent at €10.82 billion.

Europe Online declines:

German factory orders post surprise slump in December

German industrial orders posted a surprise 0.5-per-cent fall in December despite a rebound in demand from the eurozone, the Ministry of Economics said Thursday.

The decline in the monthly data failed to offset the surge in orders in November, which jumped by an upwardly revised 2.4 per cent as a result of strong demand for bulk orders from Europe’s biggest economy.

“The trend toward increasing demand for industrial products continues despite the slight decline in December,” the ministry said.

TheLocal.de lights a fuse:

Court grants EU migrants German jobless benefits

A German job centre will have to pay a jobless Spanish family unemployment benefits, a court ruled on Thursday, in an apparent contradiction of German law.

The Court of Social Affairs in Dortmund ruled unemployed immigrants from the European Union could claim Hartz IV unemployment benefits, in a judgment which decided in favour of European Union law over German.

European law states citizens from other EU countries must be treated equally, which includes access to benefits.

But German law grants exemptions by classifying Hartz IV as a “social benefit” which can be denied to EU citizens rather than a “special benefit” which cannot be. It means EU migrants who are in Germany but are not seeking work are excluded from claiming unemployment benefits.

On to France and a walkout ahead from TheLocal.fr:

French teachers to strike over August return

Summer holidays are sacred in France and even more so it seems for French teachers. One union has called for a strike after the government did the unthinkable and timetabled the start of the autumn term before the end of August.

Even though back to school for autumn 2014 is a full six months away—and school isn’t even out yet—the first strike of the next school year has already been called.

The members of the national union of secondary and high school teachers (Sydicat National des Lycées et Collèges) sent out warning on Wednesday of the strike pencilled in for the end of August. This time its not about pay cuts or a lack of funding, but a decision to make them to return to school after the summer holidays, in the sacred holiday month of August.

The government has rewritten the school calendar so that teachers have to be back on August 29. Bearing in mind August is traditionally the month when the whole country pretty much shuts down and everyone goes to the beach, the move has not gone down well with in staff rooms.

Switzerland next and more hard times immigration politics from TheLocal.ch:

Immigration: ‘total chaos’ seen if curbs backed

Switzerland’s ties with the European Union face a crunch test on Sunday as voters decide whether to revive immigration quotas on EU citizens, in a referendum piloted by rightwing populists.

The result could be close, with the latest poll indicating 43 percent back the “Stop Mass Immigration” proposal and 50 percent oppose it.

Switzerland is not in the EU but is ringed by members of the 28-nation bloc, which is its main export market. If passed, the proposal would bind the government to renegotiate within three years a deal which gives the EU’s 500 million residents equal footing on the job market in this nation of 8.1 million people.

Opponents of the plan — the government, most political parties and the business sector — warn that ripping up free labour market rules for EU nationals in force since 2007 would unravel related economic deals.

Another consequence of the battle for women’s bodies from El País:

Doctors shun life-saving abortion

  • As 32-year-old Daniela found out, access to the procedure at a public hospital can be impossible
  • The government is planning to make the law covering terminations even tougher

La Paz Hospital, one of the largest public health centers in Madrid, refused to perform an abortion on Daniela, a 32-year-old woman who had lost all her amniotic fluid when she was 20 weeks pregnant. In these conditions, a fetus no longer has a chance to live, according to all the specialists consulted by this newspaper, and the mother is at risk of serious infection.

Even though she met all the requirements set out in the current abortion law – which the Popular Party government plans to toughen up on – the Madrid hospital refused to terminate her pregnancy. Eventually, Daniela, who was on intravenous antibiotics to prevent infections, was discharged from La Paz so she could go to a private center for her abortion, after the regional government confirmed her right to one.

A spokeswoman at La Paz said that all the doctors there are conscientious objectors – whose rights are enshrined in the current Spanish law on abortion – and that in 2010 the gynecology department in full decided not to carry out any abortions, ever.

thinkSPAIN charts the loss:

Salaries have fallen by 10 per cent since labour reform came into effect, say recruitment centres

  • Mass redundancies falling, but on-the-job training is a must, according to Adecco

WAGES have gone down by an average of 10 per cent, and the typical redundancy pay-off to 26 days’ salary per year of service, according to research by three recruitment agencies.

Adecco, the Sagardoy Foundation and the Excellence in Sustainability Club – which all form the official Observatory for monitoring the government’s labour reform – studied 200 companies, most of which have a minimum of 50 employees.

They say redundancy pay has gone down, but remains on the whole higher than the requisite 20 days’ salary per year of service which is the legal minimum for a ‘fair dismissal’.

TheLocal.es has poor possibilities:

Half of Spain’s job ads pay less than €1K/month

The so-called ‘mileurismo’ phenomenon continues to grow as data from employment portal jobandtalent.com reveals that 49 per cent of jobs offered in Spain in January had net salaries equivalent to less than €1,000 ($1,350) per month.

Information published in the company’s blog showed that jobs in the ‘mileurismo’ category – those that pay less than €1,000 a month – had risen from 30 per cent  to 49 per cent of those on offer.

Of those, positions offering gross annual salaries of under €15,000 rose from 20 per cent to 31 per cent of the total, and jobs offering €16,000 to €20,000  from 6 per cent to 18 per cent.

The blog presented the figures as a complement to data released this week by the Juan Alfaro Club of Excellence’s Labour Reform Monitor which showed that average wages across Spain had fallen by 10% since the introduction of new legislation designed to introduce flexibility into the job market.

But one number is heading up. From TheLocal.es:

Spanish bankruptcies hit the roof in 2013

The number of household and business bankruptcy filings leapt by 6.5 percent to 9,660, the National Statistics Institute said, as the economy emerged from a long recession.

Spain’s economy grew slowly in the second half of 2013, shaking off a double-dip recession but still weighed down by a 26-percent unemployment rate.

The eurozone’s fourth-largest economy is still overshadowed by the aftermath of a decade-long property bubble, which collapsed in 2008 destroying millions of jobs and flooding the nation in debt.

In a sign that the business sector’s decline may be steadying, however, bankruptcy filings rose at a slower pace last year when compared to a 15.1 percent increase in 2011 and a 32.2 percent surge in 2012. But the number of bankruptcy filings remains at historically high levels.

And battle over women’s bodies ends the same way, via thinkSPAIN:

Surrogate births not recognised under Spanish law, rules Supreme Court

CHILDREN born to surrogate mothers cannot be registered as the legal offspring of the parents who commissioned the woman who gave birth, Spain’s Supreme Court has ruled.

Whilst in the USA, couples who cannot have children or all-male couples can ‘rent a womb’ to enable them to start a family and register the baby as their own, Spanish law does not recognise the procedure, as two men discovered when they attempted to do so with their two children born in California.

The couple, who are married, had all the legal certificates issued by the county of San Diego, California to prove they were the legal fathers of the twin boys born in 2008 via a surrogate mother, in accordance with US law.

Italy next and another number of the way up from TheLocal.it:

Rents in Italy soar as wages stagnate

Italians are spending the bulk of their monthly salary on rent as prices climb and landlords refuse to negotiate even in times of job loss, a survey has revealed.

Over 40 percent of those surveyed by mioaffito.it, the Italian property website, said between 35 and 50 percent of their salary goes on rent, while 30 percent said they spend even more.

Rents in Italy have risen by 105 percent over the last twenty years, while average household salaries have gone up by just 18 percent, Gaia Merguicci, a community manager at mioaffito.it told The Local.

The average monthly rent in Italy is around €780, up from €738 since last August, according to data from the website. Florence saw the steepest climb over the past six months, with rents increasing by 14.2 percent.

However, the most expensive place to rent is the business hub of Milan, where the monthly average is €1,823 followed by Rome at €1,629 and Florence at €1,228. The cheapest place is Ragusa, in Sicily, where rents average €390.

The latest Bunga Bunga blowback from TheLocal.it:

Italian senate to join civil case against Berlusconi

The speaker of Italy’s upper house of parliament on Wednesday announced the Senate would declare itself a civil party in a trial against former premier Silvio Berlusconi for allegedly bribing senators, according to Italian media reports.

Speaker Piero Grasso said said it was his “moral duty” to declare the Senate a civil party despite an earlier recommendation by a parliamentary
committee for the upper house to stay out of the media magnate’s latest legal troubles.

Embattled Berlusconi was ousted from parliament and stripped of legal protection in November after he was found guilty of tax fraud.

TheLocal.it once again, and a heads up for the big winners:

Bonino defends German role in euro crisis

Italy’s Foreign Minister Emma Bonino on Thursday defended Germany against charges its austerity demands were the cause of suffering in the crisis-hit eurozone.

“Those who hold Germany responsible for everything are not only telling an untruth but also behaving unfairly,” Bonino told Munich daily the Sueddeutsche Zeitung.

“I find this criticism of Berlin quite petty and only partially appropriate,” said Bonino, a former EU commissioner.

After the jump, the latest in the ongoing Greek disaster, Ukrainian warnings, drought and a protest victory in Latin America, Australian and Japanese tapering, Thai troubles, Chinese anxieties, Sony woes, a free-trade-for-dolphins ploy, U.S. and European GMO word wars, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day I: Spies lies. LOLZ, pols


Today’s tales form the world of the dark arts and militarism begins with a saga playing out in classic spy vs. spy fashion, with the tapper suddenly becoming the tapped. Our first headline comes from New Europe:

EU, US, Russia, Ukraine: spy games on your youtube

US officials say they suspect Russia is behind the leak of an apparently bugged phone conversation about Ukraine between two senior American diplomats in which they make disparaging comments about the European Union. Another conversation also leaked features two EU officials making comments about the US.

“I would say that since the video was first noted and tweeted out by the Russian government, I think it says something about Russia’s role,” White House spokesman Jay Carney told reporters.

The US officials noted that an aide to Russian deputy prime minister, Dmitry Rogozin, was among the first to tweet about a YouTube video that contains audio of the alleged call between the top US diplomat for Europe, Victoria Nuland, and the US ambassador to Ukraine, Geoffrey Pyatt. The video, which shows photos of Nuland and Pyatt, is subtitled in Russian.

In the audio, voices resembling those of Nuland and Pyatt discuss international efforts to resolve Ukraine’s ongoing political crisis. At one point, the Nuland voice colorfully suggests that the EU’s position should be ignored. “F— the EU,” the female voice said.

The video in question via Re Post:

Casting suspicions with EUobserver:

Ukraine leak designed to ‘split’ EU-US diplomacy

The publication on YouTube of what appear to be two sensitive US and EU diplomatic conversations on Ukraine is designed to spoil relations between the allies, EU diplomatic sources say.

The items were uploaded by an anonymous user called “Re Post” on Tuesday (4 February) and have several thousand clicks each already.

In the imputed US clip, which appears to date to Ukraine President Viktor Yanukovych’s offer of top jobs to opposition MPs on 25 January, Viktoria Nuland, a senior US state department official, is allegedly speaking to Geoffrey Pyatt, the US ambassador to Ukraine.

They bat around ideas on which of the MPs should be Prime Minister in an interim government. Nuland adds she wants a senior UN diplomat to come to Kiev to seal an accord on the US-model cabinet.

“So that would be great, I think, to help glue this thing and have the UN help glue it and, you know, fuck the EU,” she says.

“Oh exactly, and I think we’ve got to do something to make it stick together, because you can be sure that if it does start to gain altitude the Russians will be working behind the scenes to torpedo it,” Pyatt replies.

And the mea culpa, via EUbusiness:

Top US diplomat for Europe says sorry for cursing the EU

US officials, while not denying such a conversation took place, refused to go into details, and pointed the finger at Russia for allegedly bugging the diplomats’ phones.

“Let me convey that she has been in contact with her EU counterparts, and of course has apologized,” State Department spokeswoman Jen Psaki said.

While Psaki said she had no independent details of how the conversation was captured and uploaded onto the social networking site, she added: “Certainly we think this is a new low in Russian tradecraft.”

More from the McClatchy Washington Bureau:

White House implicates Russia in leaked call between US diplomats

White House Press Secretary Jay Carney referred most of the questions to the State Department, but noted that the conversation “was first noted and tweeted out by the Russian government.

“I think it says something about Russia’s role,” Carney said of the appearance of the leaked remarks. “But the content of the conversation is not something I’m going to comment on.”

Carney said relations between the US and the EU are “stronger than ever” and said there was “no question” that Nuland and the ambassador are trying to “help de-escalate the crisis” in Ukraine.

“It’s certainly no secret that our ambassador and assistant secretary have been working with the government of Ukraine, with the opposition, with business and civil society leaders to support their efforts to find a peaceful solution through dialogue and political and economic reform,” Carney said. “Ultimately, it’s up to the Ukrainian people to decide their future.”

Here’s a piece about the crisis from a Russian state medium, RT:

‘This is what you cook for Ukraine?’ State Dept. Psaki grilled over leaked tape

Program notes:

Senior US State Department official Victoria Nuland has allegedly been caught giving a harsh message to the EU while discussing Ukrainian opposition leaders’ roles in the country’s future government. The phone call was taped and posted on YouTube. US officials refused to confirm or deny the tape’s authenticity, but State Department spokesperson Jan Psaki said that she “didn’t say it was inauthentic.” While being grilled about this and other tape-related statements, Psaki hinted that the tape could have been leaked by Moscow.

Another Russo-centric crisis in the headlines from Network World:

Experts warn of Russian spying, hackers at Sochi Olympics

Americans heading to Sochi, Russia, for the Winter Olympics are being warned that privacy is not a right in the host country and all their electronic communications will likely be monitored.

The United States Computer Emergency Response Team (US-CERT), a division of the Department of Homeland Security, is recommending the use of electronic devices that are devoid of sensitive information and can be left behind, if Russian authorities decide to confiscate the equipment.

To avoid problems, personal smartphones, tablets and laptops should be left at home. Americans should only use devices bought or borrowed for the trip and can be wiped clean when leaving the country to avoid taking malware back home.

Sam venue, different focus from Homeland Security News Wire:

DHS alerts Russia-bound airlines of toothpaste tube bombs risk

The U.S. intelligence and counterterrorism agencies have advising airlines flying to Russia to be aware of the possibility that explosive materials could be concealed in toothpaste or cosmetic tubes. DHS issued a bulletin to airlines flying into Russia alerting them to the potential threat. The new concern about explosive toothpaste tubes notwithstanding, the biggest worry is still Islamist groups based in southern Russia’s Caucasus region.

The U.S. intelligence and counterterrorism agencies have advising airlines flying to Russia to be aware of the possibility that explosive materials could be concealed in toothpaste or cosmetic tubes.

Representative Michael McCaul (R-Texas), chairman of the House Homeland Security Committee, said Wednesday that DHS issued a bulletin to airlines flying into Russia alerting them to the potential threat. McCaul said the bulletin indicated that officials believed the explosives might be used during flights or smuggled into the city of Sochi, where competition at the Winter Olympics begins later today. The opening ceremony will be held Friday.

Bringing it all back home with PCWorld:

More than 4,000 groups sign up to protest NSA

More than 4,000 groups and websites have signed on to support a day of protest against U.S. National Security Agency surveillance programs, scheduled for Tuesday.

In addition, tens of thousands of people have pledged to make calls and post messages on the Web in support of surveillance reform, said organizers of The Day We Fight Back.

Among the groups supporting the day of Web protest are the American Civil Liberties Union, Amnesty International, BoingBoing, Demand Progress, the Electronic Frontier Foundation, Fight for the Future, Free Press, Mozilla, Reddit and Tumblr.

“Together we will push back against powers that seek to observe, collect, and analyze our every digital action,” organizers wrote on TheDayWeFightBack.org. “Together, we will make it clear that such behavior is not compatible with democratic governance. Together, if we persist, we will win this fight.”

From Nextgov, Tweet this!:

Twitter Breaks Rank, Threatens to Fight NSA Gag Orders

Twitter threatened to launch a legal battle with the Obama administration on Thursday over gag orders that prevent it from disclosing information about surveillance of its users.

The statement puts Twitter at odds with other technology giants including Google, Microsoft, Yahoo, and Facebook, who all struck a deal with the government last month to drop their lawsuits in exchange for looser secrecy rules.

“We think the government’s restriction on our speech not only unfairly impacts our users’ privacy, but also violates our First Amendment right to free expression and open discussion of government affairs,” Jeremy Kessel, Twitter’s manager of global legal policy, wrote in a blog post.

He said the company has pressed the Justice Department for greater transparency and is also “considering legal options we may have to seek to defend our First Amendment rights.”

North of the border and suspicions from the Toronto Globe and Mail:

RCMP, intelligence agency accused of spying on pipeline opponents

The B.C. Civil Liberties Association has filed complaints against the RCMP and the Canadian Security Intelligence Service, saying the law enforcement agencies may have illegally spied on opponents of pipelines and then shared the intelligence information with the petroleum industry.

The group has asked the Security Intelligence Review Committee and the Commission for Public Complaints Against the RCMP to investigate the situation.

“What we’re hoping here is to find out more about what’s happened,” Josh Paterson, executive director of the BCCLA, said Thursday at a news conference in Vancouver.

RT covers yet another U.S. mea culpa:

US ambassador admits tapping Angela Merkel’s phone was ‘stupid’

The US ambassador to Germany has admitted it was a “stupid” idea to tap the phone of German Chancellor Angela Merkel while discussing business, friendship and mutual trust at a trade association meeting.

“We have done a number of stupid things, Chancellor Markel’s phone being one of them,” Ambassador John Emerson told the VBKI trade association at the Waldorf Astoria Hotel in Berlin.

He apologized for the stress and loss of trust the recent NSA wiretapping revelations might have caused the German government, according to reports by the Local.

Big Brother adds eyes via the Washington Post:

New surveillance technology can track everyone in an area for several hours at a time

As Americans have grown increasingly comfortable with traditional surveillance cameras, a new, far more powerful generation is being quietly deployed that can track every vehicle and person across an area the size of a small city, for several hours at a time. Although these cameras can’t read license plates or see faces, they provide such a wealth of data that police, businesses and even private individuals can use them to help identify people and track their movements.

Already, the cameras have been flown above major public events such as the Ohio political rally where Sen. John McCain (R-Ariz.) named Sarah Palin as his running mate in 2008, McNutt said. They’ve been flown above Baltimore; Philadelphia; Compton, Calif.; and Dayton in demonstrations for police. They’ve also been used for traffic impact studies, for security at NASCAR races and at the request of a Mexican politician, who commissioned the flights over Ciudad Juárez.

Defense contractors are developing similar technology for the military, but its potential for civilian use is raising novel civil liberties concerns. In Dayton, where Persistent Surveillance Systems is based, city officials balked last year when police considered paying for 200 hours of flights, in part because of privacy complaints.

From Al Jazeera America, a crackdown in Ankara:

Turkish parliament adopts Internet censorship bill

  • Measure also forces service providers to submit users’ activity records to officials on request, without notifying users

Turkey’s parliament has adopted a new Internet bill roundly criticized as an assault by Prime Minister Recep Tayyip Erdogan on freedom of expression, access to information and investigative journalism. The measure was approved as Erdogan’s government is in the midst of a sweeping corruption probe that has shaken his Cabinet.

After hours of debate, the measure was adopted late on Wednesday in parliament, where Erdogan’s ruling Justice and Development Party (AKP) dominates with 319 of the 550 seats.

The bill permits a government agency, the Telecommunications Communications Presidency (TIB), to block access to websites without court authorization if they are deemed to violate privacy or to contain material seen as “insulting.”

Reaction from Deutsche Welle:

EU criticizes Turkey’s Internet law

The EU has criticized Turkey’s tightened Internet controls. Lawmakers adopted the new Internet legislation late on Wednesday following hours of debate involving fierce objections from the opposition.

The criticism came after Turkey’s parliament amended regulations allowing the government to block websites without a court order and mandate Internet service providers to store data up to two years. President Abdullah Gul still must sign the new law, which allows the blocking of websites believed to violate privacy or contain content considered insulting.

“The law needs to be revised in line with European standards,” said Peter Stano, a spokesman for EU Enlargement Commissioner Stefan Fuele. “The Turkish public deserves more information and more transparency, not more restrictions.”

The legislation also forces providers to retain user data for two years and present it to authorities without notifying the user in question. The new measures build upon existing Internet restrictions introduced in 2007 that, according to a Google transparency report published in December, make Turkey equal to China as the world’s biggest web censor.

The 2007 law has allowed for temporary blocking of websites including WordPress, Dailymotion and Vimeo. YouTube was also blocked for two years until 2010.

After the jump, the latest developments in Asia’s sundry zonal, military posturing, and historical crises, Mission Impossible tech, a spooky blast from the past, hacks and embarrassments, cartels and vigilantes battle online, hackers seize control of cars, and more. . . Continue reading

Headlines of the day II: EconoGrecoSinoFuku


Our compendium of entries form the political, economic, and environmental realms opens with a spine-chiller from The Independent:

Scientists talk of ‘pandemic potential’ after first confirmed human death from new strain of bird flu

Chinese scientists have said the “pandemic potential” of a new strain of bird flu “should not be underestimated” after the first known human infection resulted in the death of an elderly woman.

The new strain is a variant of a virus known as H10N8, which scientists believe may have originated in wild birds, and later spread to poultry.

The victim, a 73-year-old woman from Nanchang City in south-eastern China, was the first person confirmed to have been infected with the new type, and a second case has since been discovered, raising concerns that the virus has evolved so that it can transfer easily from birds to humans.

Its emergence coincides with a surge in the number of cases of another bird flu strain, H7N9, which is known to have infected 286 people since March last year, causing 60 deaths. The vast majority of cases have occurred in China, but Taiwan has also recorded two infections, and the virus is known to have spread to Hong Kong, which has seen four cases.

Latter-day gladiatorial gaming and another sign of our cultural plight from BuzzFeed:

George Zimmerman Reportedly Set To Fight Rapper DMX

  • The man who was found not guilty of murder in the killing of teenager Trayvon Martin will fight the rapper who promised to “f**k him right up,” according to TMZ. The fight promoter backtracked from announcing the fight on Trayvon’s birthday.

From The Guardian, costly folly:

Fracking is depleting water supplies in America’s driest areas, report shows

  • From Texas to California, drilling for oil and gas is using billions of gallons of water in the country’s most drought-prone areas

America’s oil and gas rush is depleting water supplies in the driest and most drought-prone areas of the country, from Texas to California, new research has found.

Of the nearly 40,000 oil and gas wells drilled since 2011, three-quarters were located in areas where water is scarce, and 55% were in areas experiencing drought, the report by the Ceres investor network found.

Fracking those wells used 97bn gallons of water, raising new concerns about unforeseen costs of America’s energy rush.

“Hydraulic fracturing is increasing competitive pressures for water in some of the country’s most water-stressed and drought-ridden regions,” said Mindy Lubber, president of the Ceres green investors’ network.

Just how bad is California’s drought? Consider the following from Bloomberg News:

BLOG Drought

From the Washington Post, stiffing the Praetorians:

CBO: Military pension payments to fall 5 percent by 2023 with cut

A controversial new pension cut for younger military retirees will help reduce the projected payments for those retirement benefits by about 5 percent by 2023, according to congressional number crunchers.

Estimates from the nonpartisan Congressional Budget Office, released Tuesday, show that federal spending on military retirement benefits will rise from $51.5 billion this year to $64.3 billion in 2023.

The change is at least partly due to a provision in the budget bill Congress and President Obama approved in December that reduces cost-of-living allowances for working-age military retirees by 1 percent starting next year. A higher rate will apply once those individuals reach age 62, and the plan does not affect disabled retirees.

The Register delivers the blow:

First Dell, now IBM: 15,000 jobs face the axe at Big Blue, says union

  • ‘Workforce rebalancing’ will take place in the first quarter

IBM is set to spend another $1bn on job cuts this year to eliminate an estimated 15,000 jobs worldwide, according to trade union Alliance@IBM.

The company has already spent the same amount of money last year on ‘workforce rebalancing’, its euphemism for redundancies.

Big Blue’s chief financial officer for finance and enterprise transformation, Martin Schroeter, has admitted there would be more cuts in 2014, during the announcement of IBM’s fourth quarter earnings last month.

And on a cultural front, this from a Carl Hiaasen headline in the Miami Herald:

Dr. Cheech called — your prescription is ready!

Medical marijuana will be on the Florida ballot in November, which is bad news for Gov. Rick Scott and other Republican leaders who oppose any relaxation of the state’s backward cannabis laws.

They say medical use of weed is the first step toward Colorado-style legalization, and they might be right. They say that although the proposed constitutional amendment names only nine diseases, lots of people who aren’t really sick will find a way to get marijuana from certain doctors.

That’s probably true, too. This, after all, is the state that made pill mills a roadside tourist attraction. Who can doubt that future pot prescriptions will bear the signatures of a Dr. Cheech or a Dr. Chong?

A parallel development from the Washington Post:

D.C. Council weakens bill to decriminalize marijuana, keeps smoking in public a crime

The D.C. Council voted Tuesday to eliminate criminal penalties for possession of marijuana but left smoking it in public a crime, keeping alive concerns about racial profiling in pot arrests in the District.

With an 11 to 1 vote, several council members reversed their previous support for a more far-reaching measure, weakening an effort to join the quarter of U.S. states that have decriminalized small amounts of marijuana.

While they stuck with their plans to drop possession to a civil offense — akin to a parking ticket — council members decided not to decriminalize public smoking. They did, however, reduce the maximum jail sentence from six months to 60 days.

North of the border to another bubble expanding from the Toronto Globe and Mail:

Toronto home prices surge, again ‘outpacing family incomes’

Toronto home sales edged down in the bitter chill of January, but prices surged, again throwing up red flags.

Sales fell 2.2 per cent from a year earlier to 4,135 as new listings plunged 16.6 per cent, the Toronto Real Estate Board said Wednesday.

The average selling price, in turn, surged more than 9 per cent to $526,528. The so-called benchmark price climbed 7.1 per cent from a year earlier.

On to a story with a global focus from Al Jazeera America:

UN demands action from Vatican on child sex abuse

  • A scathing report urges the Catholic Church to ‘immediately remove’ clergy suspected of child abuse

The United Nations on Wednesday demanded that the Vatican “immediately remove” all clergy who are known or suspected child abusers and turn them over to civil authorities, in an unprecedented and scathing report that the Holy See’s ambassador to the U.N. promptly denounced.

The U.N. Committee on the Rights of the Child also urged the Vatican to hand over its archives on sexual abuse of tens of thousands of children so that culprits, as well as “those who concealed their crimes,” could be held accountable.

The watchdog’s blunt paper — the most far-reaching critique of the church hierarchy by the world body — followed its public grilling of Vatican officials last month. The U.N. report blasted the “code of silence” that has long been used to keep victims quiet, saying the Holy See had “systematically placed preservation of the reputation of the church and the alleged offender over the protection of child victims.”

And on to Europe with a warning from the London Telegraph:

Insular ECB is playing dangerous game of chicken with deflationary world forces

  • An aborted recovery at this point might be more than democratic societies can tolerate

The US and China are withdrawing stimulus on purpose. The eurozone is doing so by accident, letting market forces drain liquidity from the financial system for month after month.

The balance sheet of the European Central Bank has fallen by €553bn over the past year as banks repay money that they no longer want, either because ECB funds are too costly in a near-deflationary world or because lenders are being compelled by regulators to shrink their books.

This is “passive tightening” or “endogenous tapering”. The ECB balance sheet has plummeted to 23pc of eurozone GDP from a peak of 32pc in July 2012.

BBC News takes a fall [and the subject of our Chart of the day]:

Eurozone retail sales fall sharply in December

Retail sales in the eurozone fell sharply over the Christmas period, with their biggest monthly fall in two-and-a-half years.

December’s sales fell by 1% compared to the same time a year ago, and by 1.6% compared to November. Both figures were much worse than analysts expected.

The drop in consumer demand followed a surprise fall in eurozone inflation to 0.7% in January.

The figure prompted concerns about deflation in the 17-nation bloc.

On to Britain with qualified optimism from Sky News:

Economic Recovery: ‘End In Sight’ For Austerity

  • The Institute for Fiscal Studies says the pain of cuts will soon start to ease but warns the recovery is “horribly imbalanced”.

Austerity plans put in place by the coalition may already go further than is needed in order to balance the Government’s books, the Institute for Fiscal Studies (IFS) says.

In its closely watched Green Budget, the Government-spending think tank said that even if the most pessimistic forecasters are proved right on the economy, the coalition’s fiscal plans will repair the damage done to the public finances by the Great Recession.

The verdict is among the most positive yet delivered by the IFS – although it warned that there remains some uncertainty over whether it will be easy to implement the cuts planned for the coming years, since only 40% of them had been carried out.

An alarm from The London Telegraph:

NHS faces ‘unprecedented squeeze’, think tank warns

  • Ageing and growing population means spending per patient will fall by 9 per cent, despite pledge to ring-fence budgets, IFS warns

NHS faces an “unprecedented squeeze” over the next five years under the burden of an ageing population, a leading think tank has warned, while George Osborne’s cuts are not yet half way done.

Spending on each patient is set to fall by over 9 per cent over a decade, despite an “expensive and generous” ring fence around health service budgets, as the British population gets bigger and older.

The protection given to NHS and aid budgets and a series of new pre-election giveaways by David Cameron and Nick Clegg means George Osborne faces an uphill battle to balance the books by 2018, the Institute for Fiscal Studies said in its annual Green Budget.

The Tories have pledged to spare the health service from the cuts of up to 30 per cent that have hit other departments.

Sky News saves face:

Aidan Burley: MP Resigns Over Nazi Stag Party

  • Aidan Burley announces he will quit Parliament at the 2015 general election after he was slammed for organising the party.

The Conservative politician was sacked as a ministerial aide when reports of the episode emerged in 2011, and an internal party inquiry last month found he was “stupid and offensive” to have organised the party.

Groom Mark Fournier was fined €1,500 (£1,250) by a French court for wearing an SS uniform and insignia supplied by the MP. Mr Burley was his best man.

On to Ireland and Banksters Behaving Badly from the Irish Times:

Anglo directors knew about ‘absolutely illegal’ share-buying scheme, trial told

  • Prosecution says FitzPatrick did nothing to stop bank shares move

Three former Anglo Irish Bank directors were aware of a “choreographed” and “absolutely illegal” scheme to fund the buying of shares in the bank, the jury was told on the opening day of the bankers’ trial yesterday.

Seán FitzPatrick (65), William McAteer (63) and Pat Whelan (51) are accused of providing unlawful financial assistance to members of businessman Seán Quinn’s family and the so-called Maple 10, a trusted group of Anglo borrowers, to buy shares in Anglo in July 2008.

The prosecution says the transaction was designed to create the public perception of stability in the bank’s share price.

TheLocal.no laughs at Uncle Sam:

US committee approves blundering Norway envoy

The US Senate’s Foreign Affairs Committee has approved George Tsunis as the next ambassador of Norway, despite his catastrophic appointment hearing last month, and despite a warning from John McCain, its most prominent member, that he had already become “a mockery”.

McCain argued against the nomination during the meeting of the Senate Foreign Relations Committee on Tuesday, which went on to approve Tsunis by a majority of 12 to six.

“The question is whether . . . [Tsunis] will embarrass the United States of America while serving as our representative,” McCain said.

He reminded the committee’s members that Tsunis had referred to “the president” of Norway in his January 16 hearing and attacked the anti-immigration Progress Party, which has seven ministers in government, as “fringe elements” that “spew their hatred”.

Switzerland next and an embarrassment from TheLocal.ch:

Minister faces questions over Luxembourg links

Swiss Economy Minister Johann Schneider-Ammann came under renewed scrutiny on Wednesday following revelations in the media that his family company used a subsidiary in Luxembourg to evade taxes in Switzerland.

Schneider-Ammann headed Ammann, a construction equipment company, until he was elected to the federal government in 2010 as a member of the centre-right Liberal party.

Der Bund and Tages Anzeiger reported on Wednesday that Ammann used a Luxembourg-based firm, Manilux SA, as a private bank for the company, providing lines of credit for its international operations.

And TheLocal.ch, this time with nominative culture clash:

Bern tells parents: Jessico not a boy’s name

A young couple in the canton of Bern have been ordered to change the name of their newborn son because it is too feminine, according to media reports.

Alain and Miriam Flaig, from the town of Huttwil, named the child Jessico after he was born last Wednesday at the Lagenthal maternity hospital, Blick newspaper reported.

The child was born in 15 minutes and the couple picked out his name. But the following day, problems arose, Blick reported. In a letter, the authorities from Oberaarggau sent a letter objecting to the selection.

“As a first name for your son you have written Jessico on the birth form,” the letter said, according to Blick. “According to the information at our disposal, Jessico is defined as a female first name.”

As a result, the Bern authorities have refused to register the name.

France next, and the politics of history with TheLocal.fr:

SNCF faces ban in US over Holocaust role

France’s state-owned rail company SNCF faces the prospect of being barred from bidding for a €4.4 billion project in the US because of its role in transporting Jews to concentration camps during World War Two.

American lawmakers in the state of Maryland have proposed a bill that could prevent SNCF from bidding for public projects on that side of the Atlantic until it makes restitution payments for its role in taking Jews to concentration camps during the Holocaust.

Two democrat lawmakers want compensation to be paid to Holocaust survivors and their families before rail company Keolis, which is majority-owned by SNCF, can bid for a €4.4 billion, 35-year contract, to build and operate a 16 km light rail project.

“The persistent refusal of SNCF to take responsibility for its role in the Holocaust remains an insult for its victims,” sponsoring Sen. Joan Carter Conway told French daily Le Monde.

Spain next, and a pox on both their houses from El País:

PP and PSOE lose ground in latest CIS survey

  • UPyD gathers support while citizens are most concerned by unemployment and corruption

The results from the latest survey conducted by the Center for Sociological Studies (CIS) make grim reading for the Popular Party (PP) and the Socialists (PSOE), to the extent that the main opposition party has accused the state-funded body of cooking the results, despite a drop in voter support for the government.

The last study, in October 2013, reported 34 percent of Spaniards would vote for the PP in a general election, a figure that fell to 32.1 percent in the latest survey. The PSOE also lost ground and would receive the backing of 26.6 percent of the country, a loss of two percentage points. The United Left (IU) remained steady at 11.3 percent while the UPyD’s support rose from 7.7 percent to 9.2 percent.

The study, conducted between January 3 and 15, shows that unemployment remains the principle concern for 78.5 percent of Spanish citizens, up from 53.4 percent in October. In second place was corruption, up from 37.6 percent to 39.5 percent, with a raft of investigations into the PP, the PSOE, labor unions and the royal family dominating the headlines. However, just 0.6 percent of respondents said the monarchy was a source of concern.

TheLocal.es adds a monkey wrench to the mix:

Police reveal extent of bribes to ruling party

Spanish police investigating one of the country’s biggest ever corruption scandals have released a list of ‘gifts’ including plasma TVs, Cuban cigars and Mont Blanc pens allegedly given to top Popular Party officials to curry favour in return for public contracts.

The Economic and Fiscal Crimes Unit (UDEF) presented the details to the courts on Tuesday as part of the ongoing investigation into the complicated Gürtel affair, in which senior members of the government are alleged to have received presents and cash backhanders in return for public contracts.

The Gürtel leader, Francisco Correa, is said to have given politicians ‘presents’ including Habana cigars (€450); a Mont Blanc Pen; €6,000 of plasma TVs; smartphones; €500 crates of wine; trips to DisneyLand; holidays to Cancún, New York, Kenya and Mauritius; and luxury hotel accommodation worth over €1,000 per night.

With total employment at a record low, one sector gains with El País:

Spanish services sector grows at fastest pace in over six years

  • Companies increase staffing levels for first time in 70 months

Spain’s services sector, which accounts for over half of GDP, saw the fastest growth in activity in the first month of the year since July 2007, cementing expectations of a recovery in the economy this year, according to a survey released Wednesday by consultant Markit.

Companies in the sector also increased their staffing levels slightly in January, ending a run of 70 consecutive months of job cutting.

Markit’s Purchasing Managers’ Index (PMI) climbed from 54.2 points in December to 54.9 points in the first month of 2014, marking the third successive month in which the index stood above the 50-point mark that denotes expansion. The increase in the month was also the strongest since before the current crisis took hold around the start of 2008.

Across the peninsula for a Lisbon demand from the Portugal News:

Country must pay off debt, not seek to restructure it – PM

Portugal’s prime minister, Pedro Passos Coelho, said on Wednesday that after the country exits the adjustment programme linked to its current euro-zone bailout, it must start accumulating budget surpluses so as to reduce its debt burden, rather than seeking to restructure it.

“What we want is not to restructure the Portuguese debt, what we want is to pay it, creating conditions for our economy to grow, but also managing our public finances in such as way as to free up surpluses that, essentially, can free up the economy itself, companies, citizen, families from the weight that this debt today imposes on us,” he said. For that reason, he went on, society in general must “project for this post-troika [period] a very great determination and a very great will.”

The prime minister was speaking at an event in Lisbon to launch a ‘Coalition for Green Growth’, an entity created by the Ministry of Environment and which brings together organisations from various sectors.

Passos Coelho dedicated much of his speech to the subject of the ratio of debt to gross domestic product: the higher this is, he said, the greater the upward pressure that financial markets exercise on Portugal’s sovereign bond yields.

Off to Italy and pricing the commons with The Guardian:

Italy threatens to sue Standard & Poor’s for failing to value its history and art

  • Ratings agency would not have issued damaging downgrade if it had taken account of cultural wealth, state auditor claims

Italy is threatening to sue the credit ratings agency Standard & Poor’s for failing to value its historical and cultural treasures.

The country that bequeathed the world Dante, da Vinci and an enviable vision of La Dolce Vita, thinks financial analysts would not have issued a damaging credit downgrade against Italy if they had paid more attention to its cultural wealth than its spiralling budget deficit.

According to the Financial Times, Italy’s auditor general, the corte dei conti, believes that S&P may have acted illegally and could be sued for €234bn (£194bn).

TheLocal.it takes Bunga Bunga on the road:

‘Berlusconi for PM’ campervan tours Italy

Supporters of Silvio Berlusconi’s party Go Italy (Forza Italia) have set out on a campervan tour as part of a campaign calling for the former prime minister’s daughter, Marina Berlusconi, to become a candidate for the Italian premiership.

The campervan, branded with photographs of Silvio and his Marina Berlusconi, a 47-year-old business executive, is the brainchild of Gabriele Elia and fellow fans from the town of Cellino San Marco in south-east Italy.

Twenty years after Silvio Berlusconi first founded his political party, Elia has set out on his tour of Italy under the banner “the liberal dream continues”.

He has already toured the heel of Italy’s boot and driven the length of the country to reach Arcora, the home of Silvio Berlusconi’s mansion made infamous for erotic “bunga bunga” parties hosted by the billionaire.

From TheLocal.it, lost tolerance:

Italian MP laments ‘massive’ refugee influx

The number of refugees landing in Italy rose tenfold in January, the country’s deputy interior minister said on Tuesday, complaining of an “incessant and massive influx of migrants”.

January 2014 saw a total of 2,156 migrants in Italy, compared to 217 the previous year, the official added.

“In 2013, Italy was subjected to an incessant and massive influx of migrants from North Africa and the Middle East,” Filippo Bubbico told parliament.

Throughout the whole of 2013, a total of 2,925 vessels of various shapes and sizes landed on Italian shores, carrying about 43,000 people, including nearly 4,000 children.

After the jump, the Greek meltdown flares up, failing family finances in Cyprus, a Russian warning on the Ukraine, a Brazilian financial alarm, Thai troubles, Chinese warning signs, Japanese aging and income woes, a GMO victory, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day I: Spies, laws, drones, zones


Today’s tales of the worlds of espionage, laws, and the current crop of Asian zonal, militarization, and security crises [plus more] opens with a question from the ACLU Blog of Rights:

Who Did the NSA’s Illegal Spying Put in Jail?

Last week, the ACLU joined a constitutional challenge to the FISA Amendments Act of 2008 (FAA), the statute that allows the NSA to engage in dragnet surveillance of Americans’ international phone calls and emails. With the Federal Defenders Office, we filed a motion on behalf of Jamshid Muhtorov, the first criminal defendant to receive notice that he had been monitored under this controversial spying law. But Mr. Muhtorov received this notice only after the Department of Justice (DOJ) abandoned its previous policy of concealing FAA surveillance in criminal cases — a policy that violated both the statute itself and defendants’ due process rights.

For criminal defendants and for the country, it’s good news that the government is reviewing criminal cases in which FAA evidence has played a role. But the FAA is just one surveillance program among many. And given what we now know about the DOJ’s unlawful notice policy, we should be asking whether the government has concealed in criminal prosecutions its use of other mass surveillance programs.

VOA News offers a claim:

NSA Says Snowden Leaks Put US Soldiers at Risk

Top U.S. intelligence officials say leaks by former National Security Agency contractor Edward Snowden have put members of all branches of the U.S. military and other U.S. personnel abroad at risk, and that the Pentagon has had to make costly changes. The officials testified to a congressional panel about worldwide threats to U.S. national security.

Defense Intelligence Agency Chief Michael Flynn told the House Intelligence Committee that revelations by Edward Snowden, who is now living in Russia , have put the lives of U.S. service members in danger, and that the Pentagon is making adjustments.

‘Everything that he touched, we assume that he took, stole,’ he said. ‘So we assume the worst case in how we are reviewing all of the Defense Department’s actions, events, exercises around the world.’

Techdirt delivers a threat:

Congress Warns DOJ That If It Doesn’t Support NSA Reform Plan, It Won’t Renew Key Patriot Act Provision

  • from the get-your-act-together dept

While the USA Freedom Act isn’t perfect, it is one bill in Congress that has a lot of support and will fix many problems with the current NSA overreach. Much more needs to be done, but the USA Freedom Act is a good starting point. And yet, the Obama administration and his Justice Department have yet to take a public stand on the bill, and that seems to be annoying plenty of folks in Congress. At the recent Judiciary Committee hearings, Rep. Jim Sensenbrenner, the original author of the Patriot Act and Section 215, made it abundantly clear that the DOJ/NSA’s interpretation of his bill was simply incorrect and that they were abusing the system. As the sponsor of the USA Freedom Act to fix this misinterpretation, he pointed out that if the DOJ doesn’t agree to support it, there’s a good chance that Congress simply won’t renew the provisions in Section 215 at all. Section 215, of course, is the part that has been misinterpreted by the DOJ, the FISA court, the NSA and the FBI to pretend it authorizes the collection of every phone record. In short, the message from Congress is: work with us to reform things, or we’ll pull the authority altogether. Of course, some of us think that pulling the authority altogether might be a better long term solution.

McClatchy Washington Bureau resists:

Some in Congress see just one option for NSA spying: Scrap it

“Congress never intended to allow bulk collections,” said Rep. Jim Sensenbrenner, R-Wis., author of the 2001 Patriot Act.

Debate is intensifying in Congress over whether to scrap the massive data collection effort or to modify it. There’s widespread skepticism among both parties over President Barack Obama’s plans for the program’s future and a desire for Congress to curb the National Security Agency.

“In my district, and many others, NSA has become not a three-letter word but a four-letter word,” Rep. Doug Collins, R-Ga., said at a Tuesday hearing on the surveillance effort.

Rep. John Conyers, D-Mich., said Congress needs to end the bulk collection.

“Consensus is growing that it is largely ineffective, inconsistent with our national values, and inconsistent with the statute as this committee wrote it,” said Conyers, the top Democrat on the Judiciary Committee.

BBC News has a hack attack:

Snowden leaks: GCHQ ‘attacked Anonymous’ hackers

GCHQ disrupted “hacktivist” communications by using one of their own techniques against them, according to the latest Edward Snowden leaks.

Documents from the whistle-blower published by NBC indicate UK cyberspies used a denial of service attack (DoS) in 2011 to force a chatroom used by the Anonymous collective offline.

A spokeswoman for GCHQ said all the agency’s activities were authorised and subject to rigorous oversight. But others say it raises concerns.

Dr Steven Murdoch, a security researcher at the University of Cambridge, said using a DoS attack to overwhelm a computer server with traffic would have risked disrupting other services.

Computerworld advocates:

NSA spy program hurting U.S. vendors

  • NSA reforms needed to help restore worldwide trust in U.S. tech industry, trade group says

The U.S. Congress needs to help restore global trust in the nation’s technology vendors by reining in surveillance programs at the National Security Agency, an industry representative told lawmakers Tuesday.

Recent revelations about NSA surveillance programs have created a “misimpression” about the U.S. technology industry and are eroding trust in those companies, said Dean Garfield, president and CEO of the Information Technology Industry Council (ITI). The furor over the NSA surveillance programs could lead to lost income in the tens of billions of dollars for U.S. cloud providers, and many U.S. tech vendors are already hearing complaints, he said.

The U.S. needs a “public policy course correction” on NSA surveillance, Garfield told the U.S. House of Representatives Judiciary Committee.

“Made in the U.S.A. is no longer a badge of honor, but a basis for questioning the integrity and the independence of U.S.-made technology,” Garfield said. “Many countries are using the NSA’s disclosures as a basis for accelerating their policies around forced localization and protectionism.”

A case of outsourcing from DutchNews.nl:

The Netherlands, not USA, gathered info from 1.8 million phone calls

The Dutch security service was responsible for collecting information from about 1.8 million telephone calls and text messages at the end of 2012 and in early 2013, ministers have told parliament.

Home affairs minister Ronald Plasterk told MPs in October the Americans were behind the tapping, after the revelations were first published in German magazine Spiegel.

However, in a two paragraph briefing on Wednesday, Plasterk and defence minister Jeanine Hennis said the information had been gathered by the Netherlands itself.

‘The details were collected in the interest of counter-terrorism activities and military operations abroad,’ the briefing stated. The information was then ‘correctly shared with the US’.

RT seeks an end:

‘Assange won’t come’: Swedish MPs urge end to whistleblower case

Swedish MPs are calling on the prosecutors in the Julian Assange sexual assault case to travel to London and question the WikiLeaks founder at the Ecuadorian embassy, where he has been taking refuge since June 2012.

The members of the Swedish parliament say investigators should accept that Assange will not be leaving the embassy voluntarily.

“It is in the interest of everyone involved in this process that the prosecutor reaches a conclusion to either file charges or dismiss the case, and it is obvious that Assange will not come to Sweden,” Staffan Danielsson, from the Center Party, said, as quoted by the Times.

Anne Ramberg, the secretary-general of the Swedish Bar Association, said “You have to be a bit pragmatic to put an end to such a circus. They should have headed to London to interrogate him.”

However, Anders Perklev, the Swedish prosecutor-general, was convinced the lawmakers are interfering with the judicial matters.

A case of dilatory dronal deliberations from Medill News Service:

U.S. lags in putting drones to commercial use, FAA should move faster, advocates say

The U.S. is lagging on commercial use of drones, manufacturers and scientists told the Senate science committee, but several senators said they want to be sure the unmanned aerial vehicles won’t be used to spy on Americans.

“These 20th century eyes in the skies shouldn’t become spies in the skies,” said Sen. Edward Markey, D-Mass., who held up an inexpensive drone equipped with two cameras at the Commerce, Science and Transportation Committee meeting.

But privacy concerns aren’t a reason to limit the commercial use of drones in the U.S., Missy Cummings, director of the Humans and Autonomy Laboratory at Duke University’s Institute for Brain Sciences, told the committee. She said unmanned aerial vehicles — UAVs — are only one type of technology that can be used for surveillance. There are small bug robots that can be slipped into bags, and ground technologies like cars will soon have cameras inside and outside, she said.

The real problem is the government is lacking experts with understanding of the technology, Cummings said.

Droning on some more with Deutsche Welle:

Drone usage on the rise, China drives Asia military spending increase says IISS report

Drones are becoming increasingly common in warfare as their operating costs go down, according to a new report by the IISS think tank. It added that China is driving an increase in military spending in Asia.

The use of unmanned aerial vehicles (UAVs), or drones, is expected to increase in the future, the military aerospace expert for the International Institute for Strategic Studies (IISS), Doug Barrie, said on Wednesday.

According to the IISS’ annual Military Balance report, as drone usage increases, the legal and ethical questions they raise come to the fore. One key issue is whether attacks on people can be justified as self-defense.

The report said that lethal strikes will be carried out by humans piloting the drones because handing that power over to a machine “will remain a threshold legislatures and the public will likely be unwilling to cross.”

While drones have been almost exclusively a tool used by Western militaries, smaller and cheaper technology has opened up the market to private companies and emerging economies.

A a major dronal move from the Yomiuri Shimbun:

U.S. curbs drone strikes in Pakistan

The Obama administration has sharply curtailed drone strikes in Pakistan after a request from the government there for restraint as it pursues peace talks with the Pakistani Taliban, according to U.S. officials.

“That’s what they asked for, and we didn’t tell them no,” one U.S. official said. The administration indicated that it will still carry out strikes against senior Al-Qaida targets, if they become available, and move to thwart any direct, imminent threat to U.S. persons.

Concern about Pakistani political sensitivities provides one explanation for the absence of strikes since December, the longest pause in the CIA’s drone campaign since a six-week lull in 2011, after an errant U.S. air assault killed 24 Pakistani soldiers at a border post, triggering a diplomatic crisis.

The current pause follows a November strike that killed Pakistani Taliban leader Hakimullah Mehsud just days before an initial attempt at peace talks was scheduled to begin. Prime Minister Nawaz Sharif’s government accused the United States of trying to sabotage the talks, and the Taliban canceled the meeting.

And a dronal secret revealad from BBC News:

Top secret UK drone Taranis makes first flight

A top secret unmanned drone, said to be the most advanced aircraft ever built in Britain, has carried out its first successful test flights.

It looks like something out of a science fiction movie. But it is also a window into the future of warfare.

Some will view it as an amazing piece of engineering. But not everyone will like what they see.

Taranis – named after the Celtic god of thunder – was first unveiled BAE Systems in 2010.

On to more local Bib Brotherly incarnations, first from MintPress News:

Privacy Advocates Gearing Up To Sue Oakland Over City “Spy” Center

The city says the goal is to monitor 24/7 for crime and to improve emergency response times, but privacy advocates and residents have serious doubts about that claim.

The Oakland Privacy Working Group, a coalition of civil liberties advocates, announced on Monday it would file a taxpayer lawsuit against the city of Oakland, Calif., if city officials continued to construct the Department of Homeland Security-funded Domain Awareness Center, which it says violates the First and Fourth Amendment rights of Oakland residents.

Specifically, the group says it is prepared to file a lawsuit to prevent the City of Oakland from awarding a contract to a company to dismantle all of the work that was completed under Phase 1, which involved adding and connecting computers, TVs, monitors, etc. But most importantly, the group says it wants to prevent Phase 2 from being implemented, which is when the surveillance system goes live.

Oakland Privacy says two other groups are also working on the lawsuit, but their identities have not been made public yet. Brian Hofer, media contact for Oakland Privacy, says the groups will remain anonymous until a lawsuit is actually filed.

And across the Oakland city limits with East Bay Citizen:

Alameda Chief on License Plate Readers: ‘I’m not Trying to Spy on Anyone’

The often insular community of Alameda may soon have Automated License Plate Readers rapidly scanning automobiles passing through the island city. However, critics of the police department’s plan say a recently released draft policy is far too vague and leaves wide gaps for potential abuse by police on civil liberties. Others questioned the proposed usefulness of retaining information obtained from the readers for up to one year.

During a public forum on the issue Monday night in Alameda, Police Chief Paul Rolleri provided an often candid glimpse into his department’s mindset when it comes to utilizing the controversial and relatively new technology, which employs scanning devices attached to patrol cars that rapidly scan thousands of license plates on public streets. Rolleri says Automated License Plate Readers (ALPR) simply capture plate numbers without any corresponding information such as the name and address of the owner. Plate numbers are then matched against a “hot list” of vehicles that may have been recently stolen or involved in other crimes.

“I’m not trying to spy on anyone,” Rolleri said Monday night. “If we were, we wouldn’t be having this discussion.” Rolleri responded to some speakers who criticized the one-and-a-half page policy for its brevity and lack of specificity, saying the proposal is merely in the draft stage. There is also a lack of case law currently available on ALPRs, he said. In addition, Rolleri expressed uncertainty over how long the department should retain data, an topic of great concern among many privacy advocates. “We’re trying to find that sweet spot,” said Rolleri. “I’ll be honest, we don’t know. We’re still trying to figure it out.” He later called the one-year proposal a good starting point that could be reevaluated in another six months.

Across another Oakland border with Pueblo Lands:

Fortress Piedmont

The city of Piedmont has installed automated license plate reader stations at busy intersections ringing its borders. The ALPR system was proposed last year. Installation began in November of 2013 after Piedmont’s city council set aside $678,000 for the technology that uses computer analytics to instantly identify the plate numbers of every vehicle passing under the watchful eyes of precision digital video cameras.

Home to bankers, lawyers, corporate executives, and real estate tycoons, Piedmont, population 10,000, is one of the wealthiest municipalities in America. When it was founded in the early 1900s it was immediately given the nickname “City of Millionaires” due to the concentration of wealthy families within its borders.

Piedmont has always been very much defined by its borders. The city is completely surrounded by Oakland, a much larger municipality whose population includes 88,000 persons whose incomes fall below the federally defined poverty line. The median household income in Oakland is $51,000. In Piedmont it’s $206,000, over four times Oakland’s average. The median home price in Piedmont is $1.5 million, and the small city has virtually no rental housing, making it an expensive community to buy a membership in.

And some plain old militarism from Deutsche Welle:

Germany paves way for new engagement

  • Germany’s cabinet is discussing ramping up its military involvement in conflicts ranging from Afghanistan to Mali. Defense Minister Ursula von der Leyen has signaled a new engagement internationally.

While Reuters goes under in the Southern Hemisphere:

Insight: Brazil spies on protesters, hoping to protect World Cup

Brazilian security forces are using undercover agents, intercepting e-mails, and rigorously monitoring social media to try to ensure that violent anti-government protesters do not ruin soccer’s World Cup this year, officials told Reuters.

Demonstrations in recent months have been much smaller than those last June when Brazil hosted a dress rehearsal tournament for the World Cup, shaking President Dilma Rousseff’s government and contributing to an economic slowdown.

But they have still resulted in vandalism of banks and paralyzed parts of major cities as a hard core of perhaps a few thousand protesters nationwide, some of whom wear masks and call themselves “Black Blocs,” clash with police.

Rousseff’s government fears the protests, the most recent of which carried the slogan “There Will Be No World Cup,” could severely disrupt the tournament, which kicks off on June 12 in Sao Paulo and ends with the final on July 13 in Rio de Janeiro.

After the jump, the latest Asian crises of zones/history/rhetoric/alliances, classroom hackers, military/industrial fails, criminalized tweets, felonious Googling, and more. . . Continue reading

Headlines of the day II: EconoPoliEcoFukuFolly


We begin today’s headlines from the economic, political, and environmental realms with the inevitable outcome of a healthcare system that isn’t public, via the New York Times:

Health Care Law May Result in 2 Million Fewer Full-Time Workers

A new analysis from the Congressional Budget Office says that the Affordable Care Act will result in more than 2 million fewer full-time workers in the next several years, providing Republican opponents of the law a powerful political weapon leading up to this years midterm elections.

The law is also expected to have a significant effect on hours worked, the nonpartisan budget office said in a regular update to its budget projections released Tuesday. With the expansion of insurance coverage, more workers will choose not to work and others will choose to work fewer hours than they might have otherwise, it said. The decline in hours worked will translate into a loss of the equivalent of 2.5 million full-time positions by 2024, the budget office said.

Republicans immediately seized on the report as evidence of the health care law’s adverse effect on the economy.

From USA TODAY, third third state?:

Alaska moves toward August vote on legal pot

Alaska could be the next state to reconsider the prohibition on marijuana, following legalization votes by Colorado and Washington last year.

Alaska elections officials posted data Tuesday showing that a petition for a statewide vote on marijuana legalization has gained enough signatures and met legal thresholds needed to put the issue before voters.

Under Alaska law, the petition when officially certified would appear on the Aug. 19 primary ballot. No formal opposition to the initiative has emerged thus far.

Reuters readies the job ax:

RadioShack to close about 500 stores: WSJ

U.S. electronics chain RadioShack Corp is planning to close about 500 stores within months, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

The struggling retailer, which is due to report results for the fourth quarter later this month, said it could not comment on rumor or speculation.

RadioShack has been working with bankers from Peter J Solomon Co to boost its liquidity and with AlixPartners on its operational turnaround.

Its sales have been in free-fall amid executive departures, strong competition and an image problem. Despite its ubiquitous presence in the United States, analysts say it has not done enough to transform itself into a destination for mobile phone shoppers, nor has it become hip enough to woo younger shoppers.

And another ax-wielder from the New York Post:

500 layoffs expected today at Time Inc.

Tuesday is D-day at Time Inc.

Around mid-morning, staffers are expected to start hearing how deep the cuts will be as Time Inc. CEO Joe Ripp unveils what is likely the last big downsizing before Time Warner spins off the publishing group as a separate company later this year.

“It’s very nerve racking,” said one source inside the company that publishes People, Time, Sports Illustrated and In Style.

The recently acquired American Express Publishing and the London-based IPC subsidiary, are expected to be particularly hard hit.

Out first global headline, via The Independent:

Das Capital: Trust in banks wanes as savers find other ways to protect their money

  • The ultra-rich are switching to real assets – gold, commodities, farm land

All systems – social, cultural, spiritual, economic and financial – rely on trust. Policy makers are now systematically undermining trust in institutions, turning to financial repression in attempting to deal with the economic crisis.

Current government policies focus on low interest rates, with returns artificially set below the true inflation rate. Where interest rates are near zero, governments print money, manipulating the amount rather than the price of money.

These measures reduce borrowing costs allowing borrowers to maintain high levels of debt. Rates below that of inflation help reduce the value of the debt, effectively decreasing the amount that must be paid back in economic terms. The policy subsidises borrowers at the expense of savers.

The London Telegraph sounds a warning:

Emerging markets more vulnerable than ever to Fed tightening, warns BIS

  • Bank for International Settlements says there had been a “massive expansion” in borrowing on global bond markets by banks and companies in developing countries

Emerging markets may be even more vulnerable to an interest rate shock today than they were during the East Asia crisis in 1998, the Bank for International Settlements (BIS) has warned.

The Swiss-based watchdog said there had been a “massive expansion” in borrowing on global bond markets by banks and companies in developing countries, leaving them exposed to “powerful feedback” risks as borrowing costs rise in the West.

“The deeper integration of emerging market economies into global debt markets has made emerging market bond markets much more sensitive to bond market developments in the advanced economies,” the BIS said in a working paper.

New Europe pontif-icates:

Pope warns that ‘unjust’ unemployment can lead to sin, moral destitution and even suicide

Francis discussed three types of destitution — material, moral and spiritual — in his first message for Lent, the solemn period leading up to Holy Week and Easter, that was released Tuesday.

Moral destitution, he said, “consists of slavery to vice and sin” such as alcohol, drugs, gambling and pornography.

He noted that sometimes “unjust social conditions” like unemployment lead to this type of destitution by depriving people of the dignity of work and access to education and health care.

“In such cases, moral destitution can be considered impending suicide.”

How, then, about folks who are doing quite well, Say, such as the consumers of this little joy from the London Daily Mail:

The Mile-Low Club: Travel company launches £175k Valentine’s Day submarine package with interior design of your choice and aphrodisiac menu (flights to the mooring not included)

  • Luxury travel company unveil submarine treat whereby couples can choose to harbour wherever they like
  • Also includes aphrodisiac menu featuring champagne and oysters
  • The bespoke submarine will actually travel 200m under the water
  • Price for a basic vessel starts at £175,000
  • Extras including helicopter transfers, entertaining rooms and champagne breakfast available

And from TheLocal.de, the crabby old man was right:

Too much reality TV ‘harms pupils’ grades’

Have you ever been worried that too much reality TV might be frying your brain or more to the point your kids’ brains? Well you better read on.

Parents everywhere have been muttering it under their breaths for years and now French researchers claim to have dealt conclusive proof.

A study by the Ministry of Education linked body DEPP (Direction of Evaluation, forecasting and performance) shows a dramatic reduction in results for 15-year-old pupils who watch too much reality TV.

The study, which relied on stats from the Ministry of Education, looked at the impact on grades of the typical activities of young kids in France from playing video games to listening to music and sending texts to friends but it was watching shows like The Voice,  Koh Lanta (the French version of Survivor)  or the Infamous Angels of Reality TV, featuring Nabilla (pictured) that appears to have the most detrimental impact on standards.

“It is the frequent watching of reality TV programmes that impacts the most negatively on the cognitive and academic performances,” said the study.

On to Europe and intolerant umbrage from EUobserver:

MEP receives 41,000 emails against gay rights

An MEP who drafted a resolution on securing the basic rights of LGBTI (lesbian, gay, bisexual, trans and intersex) people in the EU has so far received almost 41,000 emails against the proposal.

“My website was hacked as well, I don’t know who it was from. It might be coincidence, it might not be a coincidence,” Green Austrian MEP Ulrike Lunacek told the Strasbourg assembly on Monday (3 February).

A large banner which says “Warning – visiting this website may harm your computer!” has replaced her personal site since last week.

Her office said they are working to get it back to normal. They suspect it was hacked by ultra-conservative groups.

Casting a cynical eye with EUbusiness:

Ombudsman wants EU probed for corruption

The European Union’s own institutions should be probed for corruption, the EU’s watchdog said Tuesday, a day after Commissioner Cecilia Malmstroem described the bloc’s graft problem as “breathtaking.”

“The EU administration has to live up to the very highest standards,” European Ombudsman Emily O’Reilly said in a statement, adding that it largely does so and compares favourably with many member states.

However, it should not be complacent, and accordingly, O’Reilly encouraged the European Commission to “include the EU institutions in the next Anti-Corruption Report.”

On to Germany and action in Berlin from MintPress News:

Fed Up With Agribusiness, Protesters Take To The Streets In Berlin

The protesters said agribusiness threatens the livelihoods of small family farmers, leads to standardization of tastes, and damages the environment and biodiversity.

United under the declaration, “we are fed up,” around 30,000 people from several associations representing farmers, beekeepers and consumers, as well as environmental, development and food organizations, gathered in Berlin to demonstrate against large-scale agribusiness.

The protesters said that agribusiness threatens the livelihoods of small family farmers, leads to standardization of tastes and damages the environment and biodiversity. They demanded environmentally friendly farming, protection for bees, access to land and healthy, affordable food for all. They’re also seeking fair prices for farmers, an end to hunger, food scandals, monocultures, GMOs and land grabs by governments and investors.

Escorted by some 70 tractors, they marched through the streets of the German capital, from Potsdamer Platz to the government buildings of the Ministry of Agriculture and the offices of the federal chancellor. The demonstrators expressed their demands to Chancellor Angela Merkel and Vice Chancellor Sigmar Gabriel.

On to France and a taxing threat from EUbusiness:

French to make 1 bn euro tax claim against Google: report

French authorities have decided to make a tax claim of 1 billion euros against Google following a probe into the tax strategies by the US Internet giant, Le Point magazine reported Tuesday.

A Google spokesman in France declined to comment on the report, saying the company does not comment on rumours.

The French finance ministry also declined to comment, citing tax confidentiality.

France is one of a growing number of cash-strapped nations to pursue more aggressively what they see as abuse of tax and accounting rules that allows some multinational companies to pay less tax.

What Ailes France from France 24:

Is a new Tea Party brewing in France?

Interior Minister Manuel Valls has warned that France was seeing the birth of its own version of the grassroots, anti-tax Tea Party movement amid a surge of anti-government demonstrations by right-wing groups and religious conservatives across the country.

“We are witnessing the creation of the French version of the Tea Party. By exploiting the political and leadership crisis on the right, and the National Front party’s move away from the far-right, a conservative and reactionary right has been set free,” Valls, a Socialist, told the Journal du Dimanche in an interview published on Sunday.

The eye-opening comparison came hours ahead of massive rallies in defence of traditional families in Paris and the eastern city of Lyon. They were organised by the so-called “Manif Pour Tous” (Protest for all) group that staged massive protests against gay marriage last year.

Sunday’s march, which police said drew 80,000 people in Paris, was just the latest public display of anger against President François Hollande’s government in recent days.

EUbusiness goes medical:

France announces EUR 1.5 bn anti-cancer plan

French President Francois Hollande on Tuesday announced a 1.5 billion euro ($2 billion) anti-cancer plan aimed at reducing inequalities in treatment of the disease.

The 2014-2019 plan aims to give “the same chances to everyone everywhere in France” in preventing and fighting cancer, Hollande said in a speech to medical professionals.

His announcement comes a day after the United Nations warned that new cases of cancer will rise by half by 2030, reaching 21.6 million per year compared to 14 million in 2012.

On to Spain and a new low from El País:

Number of people in work in January declines to lowest level in 12 years

  • Jobless claims in Spain climb by 113,097 in first month of year

The number of people signed up with the Social Security system in Spain declined by 184,031, or 1.13 percent, in January from the end of last year to 16.173 million, the lowest figure since April 2002, according to figures released Tuesday by the Labor Ministry.

In what is traditionally a bad month for the labor market, jobless claims rose by 113,097, or 2.4 percent, from December to 4.814 million.

The ministry said that on a month-on-month basis, this January was the “least negative” since 2007, given that since the current comparable statistical series began there has never been an increase in the number of people signed up with the Social Security system. On a year-on-year basis, the number of affiliates declined by 5,829, or 0.04 percent.

TheLocal.es looks for resolution:

UN urges Spain to drop Civil War taboos

A UN expert on Monday urged Spain to break a decades-long taboo by investigating atrocities allegedly committed in its 1936-39 civil war and the Franco dictatorship that followed.

UN justice rapporteur Pablo de Greiff said Spain should scrap a 1977 amnesty law that stops victims from prosecuting the alleged perpetrators of such atrocities, which divide Spaniards to this day.

In a report, he urged Spain to scrap the amnesty and called on “the state institutions to show a decisive and determined commitment” to investigating and making sure that victims are compensated.

The amnesty was seen as a necessity by the leaders tasked with unifying Spain after Francisco Franco’s death in 1975.

Portugal next and a temporary halt to a sale of the commons from Deutsche Welle:

London auction house cancels sale of Miro paintings

Citing legal uncertainties stemming from the lawsuit in Portugal, auction house Christie’s said on Tuesday that it had decided to cancel the sale of the Miro paintings pending the resolution of the dispute.

“While the recent injunction to stop the sale was not granted, the legal uncertainties created by this ongoing dispute mean that we are not able to safely offer the works for sale,” Christie’s said in a press release.

Hours before the auction’s scheduled start time, a judge denied the opposition Socialist Party’s request for an injunction to stop the sale. Portugal’s government pleaded that harsh austerity measures have left the country short of cash, and it could not make retaining the collection of the Catalan surrealist Miro one of its priorities.

Portugal’s public prosecutor backed the appeal to stop the sale, which accused the administration of ignoring “the immeasurable immaterial value” of the collection to the country, forced into austerity measures following a 78-billion-euro ($105 billion) rescue by international creditors in 2011.

The Portugal News charts reduced losses:

BCP stems losses by around half a billion

BCP, Portugal’s largest private sector bank, announced a €740 million loss for 2013, down from €1.219 billion in 2012, following the closure of the stock market on Monday.

“This loss is significant but also substantially below that of the previous year. This reflects the macroeconomic situation and is in accordance with the restructuring plan agreed with the General Directorate of Competition of the European Commission,” BCP President Nuno Amado told a press conference.

The loss also includes €126 million in provisions for early retirement and redundancy payoffs as the bank advances with its plan expected to see several hundred employees leave the firm over the first half of this year.

On to Italy and an austerian declaration from AGI:

President Napolitano says Italy must stay course on debt

Italy cannot afford to let up its efforts to keep its public debt in check, President Giorgio Napolitano said in a speech to the European Parliament on Tuesday.

Despite the government’s concerted response to financial market pressure and significant achievements in 2013, Italy cannot afford to relax in its efforts to further curtail its public debt, he said.

After the jump, the latest from tghe Greek meltdown, a Turkish retraction, the ongoing Ukrainian crisis, a Latin American trade deal push and Brazilian woes, Australian immigration profits and environmental havoc, Indian protests, Thai warnings, troubling Chinese numbers, Japanese neoliberalism, toxic spills and criminal probes, ecocidal costs, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day I: Spies, lies, zones, & pols


We begin today’s collection of events in the realms of espionage, militarism, and deep politics with an ominous warning via the Honolulu Star Advertiser:

Internments can happen again, Scalia warns

  • The longest-serving member of the U.S. Supreme Court talks at two isle schools

U.S. Supreme Court Justice Antonin Scalia told law students at the University of Hawaii law school Monday that the nation’s highest court was wrong to uphold the internment of Japa-nese-Americans during World War II but that he wouldn’t be surprised if the court issued a similar ruling during a future conflict.

Scalia was responding to a question about the court’s 1944 decision in Kore-ma-tsu v. United States, which upheld the convictions of Gordon Hira-ba-ya-shi and Fred Kore-ma-tsu for violating an order to report to an internment camp.

“Well, of course, Kore-ma-tsu was wrong. And I think we have repudiated in a later case. But you are kidding yourself if you think the same thing will not happen again,” Scalia told students and faculty during a lunchtime question-and-answer session.

Scalia cited a Latin expression meaning “In times of war, the laws fall silent.”

And that Latin phrase in question? Inter arma enim silent leges.

Techdirt calls out the posse:

Mike Rogers Tries To Make The Case That Glenn Greenwald Should Be Prosecuted For ‘Selling Stolen Material’

  • from the is-he-insane? dept

Rep. Mike Rogers apparently just can’t help but spin wild and ridiculous conspiracy theories. Fresh off his latest attempt to argue that Ed Snowden is a Russian spy — an argument debunked by just about everyone, including his Senatorial counterpart Dianne Feinstein — it appears he’s now decided to pick up the ridiculously insane thread kicked off (purposefully) last week by Director of National Intelligence, James Clapper, hinting that journalists who reported on Ed Snowden are somehow “accomplices” who can be prosecuted.

During a House Intelligence Committee in which many members (from both parties) angrily criticized the intelligence community, Rogers continued to do everything possible to defend them, including pushing the bogus argument that Glenn Greenwald “sold stolen goods” in questions to FBI director James Comey.

From the Dept of D’oh! via Nextgov:

Feds: NSA ‘Probably’ Spies on Members of Congress

The National Security Agency “probably” collects phone records of members of Congress and their staffs, a senior Justice Department official conceded Tuesday.

Deputy Attorney General James Cole buckled under questioning from multiple lawmakers during a House Judiciary Committee hearing reviewing proposals to reform the NSA’s surveillance activity.

Rep. Zoe Lofgren, a California Democrat, began by asking Peter Swire, a member of the president’s handpicked surveillance review board, whether lawmakers’ numbers are included in the agency’s phone-records sweeps. Swire protested that he was not a government official and couldn’t best answer the question, but said he was unaware of any mechanism that “scrubbed out” member phone numbers from the agency’s data haul.

TheLocal.de listens in:

NSA ‘tapped phone of ex-Chancellor Schröder’

The US National Security Agency (NSA) reportedly tapped the phone of former German Chancellor Gerhard Schröder over his opposition to the Iraq War, according to reports on Tuesday.

The Süddeutsche Zeitung and broadcaster Norddeutscher Rundfunk (NDR) reported that Chancellor Angela Merkel was not the first German leader to be targeted by the NSA.

Schröder’s phone was allegedly tapped from 2002, while he was Chancellor, to find out his position on the Iraq War.

Schröder, who led Germany from 1998 to 2005, greeted the news with resignation rather than shock or anger. “At the time I wouldn’t have thought American security services were listening in on me, but it doesn’t surprise me now,” he said.

The Copenhagen Post makes an ornamental denial:

Intelligence officials deny NSA spying against Denmark

Intelligence agency FE rejects allegations that NSA spied on Denmark during COP15, but won’t rule out the option that other nations were bugged

The US intelligence agency NSA did not spy on Danish diplomats and politicians during the 2009 COP15 climate conference in Copenhagen, according to the Danish external intelligence agency Forsvarets Efterretningstjeneste (FE).

A NSA document revealing the agency obtained information from key countries ahead of the conference was leaked by NSA whistleblower Edward Snowden and published in Information newspaper last week.

The disclosure also revealed that the agency obtained a secret discussion paper from a Danish official, but the government has continually shot down NSA spying allegations against Denmark.

The Guardian encourages:

House committee urges US government to get behind NSA reform bill

  • Judiciary committee warns Obama administration to back USA Freedom Act or risk losing its counter-terrorism powers

Members of Congress who want to end the National Security Agency’s mass collection of Americans’ phone data sharply warned the Obama administration on Tuesday to get behind a bill to end the controversial practice, or risk losing the counter-terrorism powers provided by the post-9/11 Patriot Act.

Deriding the paucity of legislative alternatives after President Obama’s announcement last month that he wants to transfer the responsibility for bulk collection out of the NSA, congressman Jim Sensenbrenner, the co-sponsor of the USA Freedom Act, told deputy attorney general James Cole at a House judiciary committee hearing that “you will get nothing” if the administration does not endorse the bill.

Asked why the Justice Department had not taken a position on the bill, Cole said: “The Department of Justice is a big place.”

A-maize-ing intel from the New York Times:

Chinese Implicated in Agricultural Espionage Efforts

The case of the missing corn seeds first broke in May 2011 when a manager at a DuPont research farm in east-central Iowa noticed a man on his knees, digging up the field. When confronted, the man, Mo Hailong, who was with his colleague Wang Lei, appeared flushed. Mr. Mo told the manager that he worked for the University of Iowa and was traveling to a conference nearby. When the manager paused to answered his cellphone, the two men sped off in a car, racing through a ditch to get away, federal authorities said.

What ensued was about a year of F.B.I. surveillance of Mr. Mo and his associates, all but one of whom worked for the Beijing Dabeinong Technology Group or its subsidiary Kings Nower Seed. The result was the arrest of Mr. Mo last December and the indictment of five other Chinese citizens on charges of stealing trade secrets in what the authorities and agriculture experts have called an unusual and brazen scheme to undercut expensive, time-consuming research.

China has long been implicated in economic espionage efforts involving aviation technology, paint formulas and financial data. Chinese knockoffs of fashion accessories have long held a place in the mainstream. But the case of Mr. Mo, and a separate one in Kansas last year suggest that the agriculture sector is becoming a greater target, something that industry analysts fear could hurt the competitive advantage of farmers and big agriculture alike.

From USA TODAY, another cause for insecurity:

Navy nukes come under scrutiny in cheating probe

The Navy is investigating allegations of cheating among about 30 enlisted sailors who work on nuclear power systems on ships and submarines, top Navy officials said Tuesday.

The naval investigation follows weeks of bad news from the Air Force about rampant, “systemic” cheating on proficiency tests among airmen who handle nuclear weapons.

An enlisted sailor alerted superiors Monday about an offer to exchange answers to one of several tests needed to qualify to operate nuclear propulsion systems, said Adm. John Richardson, leader of the Navy’s nuclear propulsion program.

Adm. Jonathan Greenert, the chief of naval operations, and Richardson spelled out details of the investigation. “To say I’m disappointed would be an understatement,” Greenert said.

And another cause for insecurity, via Nextgov:

Despite Spending $65 Billion on Cybersecurity, Agencies Neglect Basic Protections

After spending at least $65 billion since 2006 to protect federal computers and networks from hackers, government agencies remain vulnerable, often because officials have neglected to perform basic security steps such as updating software, according to a report released Tuesday by a key Republican senator.

The study cites lapses at the very agencies responsible for protecting U.S. networks and sensitive data, including the Homeland Security Department and the Securities and Exchange Commission.

“Although it has steadily improved its overall cybersecurity performance, DHS is by no means a standard-setter,” states the assessment by Sen. Tom Coburn, R-Okla., ranking Republican on the Homeland Security and Governmental Affairs Committee.

SecurityWeek secures:

Snowden Leaks Spark Defense Firms to Change Security Practices: Survey

  • Survey: 75% of Defense Contractors Say Leaks by Edward Snowden Have Made Them Change Their Security Practices

According to the results of a survey conducted by ThreatTrack Security, the leaking of classified NSA documents by Edward Snowden has resulted in defense contractors changing their companies’ cybersecurity practices.

ThreatTrack Security published the study looking to shed light on the attitudes of IT and security managers working at U.S. defense contractors in the wake of the Edward Snowden’s leaking of classified documents related to some the NSA’s spying tactics.

From Colombia, yet another case of spookery run amok from the Miami Herald:

President Santos calls for investigation into alleged army spying on peace negotiators

President Juan Manuel Santos on Tuesday called for an investigation to see “what dark forces” might be behind an alleged army-run spy ring that targeted negotiators in Havana who are trying to broker a peace deal with the country’s largest guerrilla group.

Santos’ announcement comes after Semana.com, one of the country’s most respected media outlets, reported late Monday that the army recruited civilian hackers to break into the email and text-message accounts of government peace negotiators, including chief negotiator Humberto de la Calle.

If the allegations are true, Santos said they would be “totally unacceptable.”

And from International Business Times, another leak icon and another leak:

Text Messages from Victim of Alleged Rape, Molestation Prove Assange Innocent: Wikileak Affidavit

Even as members of Sweden’s parliament have been stepping up pressure on prosecutors to question Julian Assange on the sexual allegations he faces in the country, Assange in a Wikileaks affidavit has claimed that text messages between the two alleged victims prove his innocence.

In the affidavit, which has been published on the WikiLeaks website, Assange tries to prove his innocence, citing the text message sent by the alleged victims.

Assange, the WikiLeaks founder, has been living at Ecuador’s embassy in London since the Latin American country granted him political asylum in the summer of 2012. He was arrested in the UK in December 2010 on a European Union-wide warrant requested by Sweden, over the rape and molestation allegations.

The allegation is that Assange raped one woman and molested another, during a visit to Stockholm in 2010. However, the affidavit has one alleged victim saying in a text message that “it was the police who made up the charges”. The text message further adds that she “did not want to put any charges on JA but that the police were keen on getting a grip on him”.

After the jump, the latest rounds of rhetorical and legislative escalations and zonal boundary provocations from Asia, major Israeli and German arms sales, British Big Brother busted by British Big Brother, the New York Times does undercover edits, DEA courtroom duplicity, and more. . . Continue reading

Headlines of the day II: EconoGrecoSinoFuku


Our compendium of headlines from the world of human economic and political actions and their impacts on our environment opens with a health alert from The Guardian:

Worldwide cancer cases expected to soar by 70% over next 20 years

  • New cancer cases expected to grow from 14m a year in 2012 to 25m, with biggest burden in low- and middle-income countries

Cancer cases worldwide are predicted to increase by 70% over the next two decades, from 14m in 2012 to 25m new cases a year, according to the World Health Organisation.

The latest World Cancer Report says it is implausible to think we can treat our way out of the disease and that the focus must now be on preventing new cases. Even the richest countries will struggle to cope with the spiralling costs of treatment and care for patients, and the lower income countries, where numbers are expected to be highest, are ill-equipped for the burden to come.

The incidence of cancer globally has increased in just four years from 12.7m in 2008 to 14.1m new cases in 2012, when there were 8.2m deaths. Over the next 20 years, it is expected to hit 25m a year – a 70% increase.

Closer to Casa esnl, the latest coverage of class war in Babylon by the Bay from USA TODAY:

SF residents caught in middle of tech hostilities

For the past month, protesters have confronted buses that transport employees from Google, Apple and Facebook to Silicon Valley. The flare-ups highlight the yawning gap between those benefiting from the enormous wealth generated by the tech boom and those left behind. Multimillion-dollar tax breaks for SF-based companies like Twitter have stoked rebellious tensions.

“We have a group which is mostly young and has not learned social norms or responsibility gaining wealth and power,” says Vivek Wadhwa, a Fellow at Stanford Law School. “This group has its own value system and lives in its own bubble. It is displacing the larger population of San Francisco.”

The city has had its neighborhood battles – hippies in the Haight in the 1960s, gays in the Castro in the ‘70s. But the latest gentrification clash is moving faster, making the current situation dicey.

The Verge Googles eyesore:

California orders Google to move floating barge from current construction site

The state of California has ordered Google to move its massive floating barge away from its current construction site in the San Francisco Bay. San Francisco Bay Conservation and Development Commission executive director Larry Goldzband said the four-story structure has drawn numerous complaints. “It needs to move,” Goldzband said. He also claims that Google never had the proper permits to start work on the project at Treasure Island. But today’s development may not spell any real trouble for Google — the company simply needs to relocate the barge to another Bay facility where construction is fully permitted. The news was first reported by the Associated Press.

Sightings of the barge led to rampant speculation about its purpose last year. Google eventually admitted ownership of the San Francisco barge, teasing that it hopes to explore using it as a space where “people can learn about new technology.” We reached out to the company for more details on how it plans to respond to this latest challenge. In a statement, a Google spokesperson told The Verge, “We just received the letter from the San Francisco Bay Conservation and Development Commission and we are reviewing it.”

From Bloomberg, the usual suspects operating in the usual way:

IBM Uses Dutch Tax Haven to Boost Profits as Sales Slide

International Business Machines Corp. (IBM) has reduced its tax rate to a two-decade low with help from a tax strategy that sends profits through a Dutch subsidiary.

The approach, which involves routing almost all sales in Europe, the Middle East, Africa, Asia and some of the Americas through the Netherlands unit, helped IBM as it gradually reduced its tax rate over 20 years at the same time pretax income quadrupled. Then last year, the rate slid to the lowest level since at least 1994, lifting earnings above analysts’ estimates.

IBM is aiming for $20 a share in adjusted earnings by 2015, up from $11.67 in 2010 — a goal made more difficult as the company posted seven straight quarters of declining revenue. To stay on target, IBM has bought back shares, sold assets, and fired and furloughed workers. A less prominent though vital role is played by its subsidiary in the Netherlands, one of the most important havens for multinational companies looking for ways to legally reduce their tax rates.

MarketWatch tanks anxiously:

U.S. stocks see worst selloff in several months

  • Manufacturers expand in January at slowest rate in eight months

The U.S. stock market closed with sharp losses on Monday, after a much weaker-than-expected reading on manufacturing data as well as concerns over a slowdown in China, triggered the worst selloff in several months.

The S&P 500 and the Dow Jones Industrial Average ended the day with the steepest decline since June 20.

U.S. manufacturers expanded in January at the slowest rate in eight months as the pace of new orders sharply decelerated, according to the closely followed ISM index. The Institute for Supply Management index sank to 51.3% from 56.5% in December. That’s the lowest level since last May. Economists surveyed by MarketWatch had expected the index to drop to 56%

From the New York Times, a belated recognition:

The Middle Class Is Steadily Eroding. Just Ask the Business World.

As politicians and pundits in Washington continue to spar over whether economic inequality is in fact deepening, in corporate America there really is no debate at all. The post-recession reality is that the customer base for businesses that appeal to the middle class is shrinking as the top tier pulls even further away.

If there is any doubt, the speed at which companies are adapting to the new consumer landscape serves as very convincing evidence. Within top consulting firms and among Wall Street analysts, the shift is being described with a frankness more often associated with left-wing academics than business experts.

The Washington Post notes a sea change:

Report: Majority of U.S. kids under age 2 are now children of color

For the first time, a majority of American children under age 2 are now children of color  — and 1 in 3 of them is poor, according to a disturbing new report. “The State of America’s Children 2014.” that cites the neglect of  children as the top national security threat.

The report, published by the Children’s Defense Fund, calls on President Obama and America’s political leaders “in every party at every level to mount a long overdue, unwavering, and persistent war to prevent and eliminate child poverty.”

From the Project On Government Oversight, why the hell not?:

Could Post Offices Become Public Banks?

The U.S. Postal Service is floundering—2013 was the seventh year in a row to report a net loss, at a whopping $5 billion—and  nobody is quite sure how to fix it. Go Private? Close branches? Deliver Mail only four days a week? Ideas are being thrown around but little progress has been made in improving the troubled agency.

But last week, the office of the Inspector General of the U.S. Postal Service released a report with an out-of-the-box suggestion that would produce $8.9 billion in new annual profits: Turning the Post Office into a bank, with savings accounts, loans and debit cards. Furthermore, it would greatly benefit the poor, who lack banking options and are often gouged by predatory financial services.

The idea has been floated before but with official backing from the Inspector General it has a higher degree of credibility and plausibility. Add in the fact that it wouldn’t require Congressional approval, only an executive order from the President, and maybe the out-there proposal could actually become a reality.

Still think the idea sounds crazy? Consider this: The Post Office already was a bank. From 1911-1967, savings accounts were offered with 2 percent interest, ending because of competition from private banks with higher interest rates. The post office still provides money orders.

From Medical Daily, a notable side effect:

Medical Marijuana Cuts Suicide Rates By 10% In Years Following Legalization

Legalization of medical marijuana has been found to correlate to a significant drop in suicide rates, providing additional evidence that the federally outlawed substance may have a positive effect on U.S. public health.

The new study, which is published in the American Journal of Public Health, shows that the suicide rate among men ages 20 to 29 and 30 to 39 fell by 10.8 percent and 9.8 percent respectively following a given state’s decision to legalize medical marijuana. Although the relationship was weaker and less precise among women, the authors believe that the findings provide strong evidence in favor of medical cannabis. “The negative relationship between legalization and suicides among young men is consistent with the hypothesis that marijuana can be used to cope with stressful life events,” they wrote.

On to Europe with an anxious twist from CNNMoney:

Pressure building for ECB rate cut

Another interest rate cut in Europe could be just around the corner as the risk of deflation rears its ugly head again.

The first official estimate of eurozone inflation in January was a weaker-than-expected 0.7% — the same level that prompted the European Central Bank to cut rates in November. Consumer prices rose by 0.8% in December.

The weaker January number “puts significant pressure on the ECB to take further stimulative action at its February policy meeting next Thursday,” said IHS Insight’s chief European economist Howard Archer.

Cheaper energy was largely to blame, but the stronger euro has also been pulling import prices down, economists said.

Quartz covers mordida:

Lithuanians and Romanians are more than six times as likely to be asked for bribes than the EU average

A fifth of Danes think corruption is prevalent, for example (the lowest level in the EU), but only 3% say they are personally affected by it in their daily lives. Some 12% claim they know someone who has taken a bribe, but only 1% say they have paid, or been expected to pay, a bribe themselves.

In much of western Europe, then, it seems that corruption is a somewhat abstract concept for the common person—confined to criminal cliques or a select few who abuse their positions of power (Danes reckon politicians are the most corrupt group in their country). But as you travel to the south and east, corruption appears to creep into one’s daily life, a depressingly routine feature of doing business or accessing public services. In the past 12 months, around one in three Lithuanians and one in four Romanians say they were asked or expected to pay a bribe; the EU average is less than one in 20.

Al Jazeera America sets the cost:

Report: EU corruption costs $162B annually

  • All 28 member states suffer from some level of corruption, the report found

Corruption affects all member countries of the European Union and costs the bloc’s economies about 120 billion euros ($162.19 billion) a year, an official EU report published Monday said.

European Commissioner Cecilia Malmstrom, who presided over the first-ever official EU-wide study on corruption, said the estimated amount lost annually due to padded government contracts, covert political financing, bribes to secure health care and other corrupt practices would be enough to fund the European Union’s yearly operating budget.

All 28 EU member states suffer from some level of corruption — defined broadly by the report as the “abuse of power for private gain” — the report found.

One more headline [only], from BBC News:

Corruption across EU ‘breathtaking’ – EU Commission

On to Britain and a call for caution from Deutsche Welle:

Steinmeier urges UK to stay in EU, voices doubt on treaty change

  • Foreign Minister Frank-Walter Steinmeier has appealed to the UK to remain in the European Union, regardless of progress on the EU treaty change sought by Britain’s Conservative-led government.

Frank-Walter Steinmeier made his first visit to London since returning to the foreign minister’s post on Monday, asking his British counterpart William Hague not to lose sight of the benefits of EU membership.

“In this 21st century world, we want to protect our political, economic and cultural influences,” Steinmeier said, adding that, on the 100th anniversary of the outbreak of World War I, such European ties “really must not be underestimated.”

The German foreign minister said it would be “an exaggeration” to assert that Germany and the UK were on precisely the same page when it came to treaty reform for the EU.

Xinhua sounds the alarm:

London housing market under price bubbles risk, warns Ernst and Young

Housing market in London is beginning to show signs of bubble-like conditions, said a research report issued by Ernst and Young Item Club (EY ITEM Club) on Monday, while asking the government to monitor the trend closely and be prepared to intervene.

The EY ITEM Club forecast showed the average house price in London is expected to reach nearly 600,000 pounds (980,000 U.S. dollars) by 2018, some 3.5 times the average price in Northern Ireland and more than 3.3 times the average in the North East.

It said the average house prices in Britain growing by 8.4 percent this year and 7.3 percent in 2015, before cooling to around 5.5 percent in 2016.

And simultaneously booms:

British manufacturing off to strong start in 2014

Britain’s manufacturing sector maintained its strong growth into 2014, posing an improved domestic demand and solid output growth supported by rising export orders in January, said a survey report on Monday.

The report, jointly issued by Markit and the Chartered Institute of Purchasing and Supply (CIPS), showed the Purchasing Manager’s Index (PMI) for the British manufacturing sector was at 56.7 in January of this year.

The figure is at its lowest level in three months, but still showed a robust improvement in overall operating conditions for the manufacturing sector.

A reading of 50 points or greater indicates expansion, while below 50 indicates contraction.

A qualified UK separatism endorsement from El País:

Spain will not oppose Scottish EU entry: foreign minister

  • But García-Margallo warns that re-entry to the Union will take considerable time

Spanish Foreign Minister José Manuel García-Margallo has stated that should Scotland elect to break away from the United Kingdom, Spain will not oppose the move because it does not have any bearing on the internal affairs of the country. “If the Constitution of the United Kingdom permits – and it seems that it does – that Scotland call a referendum on their possible independence, we will say nothing on the matter,” he said in an interview with the Financial Times.

However, the minister adhered to the Popular Party (PP) administration’s line over Catalonia’s own designs on a referendum for independence; one of staunch resistance.

On to Sweden and a call from TheLocal.se:

EU: Sweden should ban secret party donations

While the EU’s executive body acknowledged that Sweden was among the least corrupt countries in the EU, it pointed to several areas of potential improvement.

Specifically, Sweden could improve its transparency if it considered a general ban on anonymous political party donations. Sweden remains one of few EU countries without total party-funding transparency, and the government came under fire last month when it decided to keep the lid on private donations.

The report also hinted that Sweden could do more to combat the risk of corruption at the municipality and county level, which the commission said could be fixed by making authorities obliged to secure transparency in public contracts with private entrepreneurs.

TheLocal.se again, with hard times intolerance:

Afrophobic hate crimes on the rise in Sweden

Hate crimes directed against Sweden’s black population have increased in recent years, according to a report published on Monday, prompting grave concern from Sweden’s integration minister.

Afrophobia, defined as hostility towards people with a background from sub-Saharan Africa, is soaring in Sweden, according to the researchers who compiled the government-commissioned report. They wrote on Monday in the opinion pages of the Dagens Nyheter newspaper (DN) that it was time society took these statistics seriously.

Between 2008 and 2012, the number of reported hate crimes against Afro-Swedes, defined as anyone with African heritage living in Sweden, rose by 24 percent, while hate crimes in general during the same period decreased by six percent. Between 2011 and 2012 alone, the number of Afrophobic hate crimes rose by 17 percent, the researchers explained.

On to Brussels and a critique via DutchNews.nl:

Brussels criticises ‘revolving door’ between Dutch politics and industry

While the Dutch integrated approach to preventing corruption and bribery could serve as a model to other EU countries, the Netherlands should still do more to improve transparency in politics, the European Commission said on Monday.

While welcoming the fact that much has been done in the Netherlands to improve transparency, the Commission went on to recommend improvements in the way the business interests of ministers are examined.

Officials’ private, financial and business interests are considered a private matter and information about their assets and interests is not available to the public, the report points out.

Nor are there any rules forcing MPs to declare potential conflicts of interest or barring them from holding financial interests or engaging in external activities.

Germany next and a peculiar call from TheLocal.de:

Industry boss: ‘Too many students harm economy’

One of Germany’s top commerce experts warned on Monday that there were so many young people at university, and so few in traineeships, that the country’s economy would suffer.

“The consequences to Germany’s economy will be damaging, if the trend to study at any cost is not stopped,” said Eric Schweitzer, president of the Association of German Chambers of Commerce and Industry (DIHK).

Schweitzer was referring to the amount of young people who undertake lengthy study in Germany, while companies struggled to fill traineeships.

“The truth is that many years of increasing student numbers in Germany have resulted in our classrooms now bursting at the seams, while companies are desperately seeking apprentices,” he said in a statement.

France next and a concession to the “family values” set from TheLocal.fr:

Hollande puts off family law to avoid new fight

A day after massive protests over President François Hollande’s “family phobia”, his government on Monday abruptly postponed plans to pass a controversial new family bill, that would likely have picked another fight with France’s traditional conservatives.

France’s Socialist government on Monday put off plans for a new family law after demonstrations by thousands of angry conservatives.

Hollande’s administration announced on Monday it was postponing its plans to move ahead with legislation that would have legalized medically assisted procreation for same sex couples, and tackled issues like surrogacy.

A source in Prime Minister Jean-Marc Ayrault’s office said the government would no longer present a bill this year that officials had said was aimed at modernising the law to reflect the new “diversity” of families.

Nature’s newsblog takes the pledge:

Hollande pledges to avoid cuts to France’s science funding

French President François Hollande promised to spare the research and higher education budget from savings of €50 billion (US$67 billion) that his government has pledged to find over the next three years to reign in its massive public deficit.

The government will find other ways to cut the deficit, avoid tax increases and ensure business can increase investment and create jobs, he said during a visit to the University of Strasbourg.

In a speech devoted entirely to research and higher education, Hollande also said he would maintain the controversial research tax credit (CIR) because companies appreciate it and it helps attracts foreign investment.

And from TheLocal.fr, a demand:

EU: France must root out corruption at local level

France remains a country where the worlds of international business and public procurement are blighted by shady dealings and corruption, according to a new EU report. But just how bad is corruption in France and how does it compare to other countries in Europe?

France needs to do more to fight corruption a new report from the European Commission argues, especially in the areas of international business transactions and public procurement, which are still ripe with misdeeds.

“Corruption-related risks in the public procurement sector and in international business transactions have not been addressed,” the report concludes.

On to Switzerland and the first of a schizy set of headlines from TheLocal.ch:

Swiss ban proposed on sex education for kids

Swiss voters will decide whether to ban compulsory sex education for children under nine after conservative groups mustered enough signatures to force a plebiscite, the authorities said on Monday.

The federal administration said campaigners had gathered more than the 100,000 signatures of voters required to put their measure to the public for approval.

The campaign coalition — whose goal is the “protection against sexualisation in kindergartens and primary schools” — handed in its petition in December and the government is now obliged to set a date for a vote.

And out of left field, also from TheLocal.ch:

Swiss want to reopen pot legalization debate

A Swiss parliamentary committee looking into drug issues wants to reopen the debate on the legalization of marijuana in the wake of developments in the US, Uruguay and New Zealand.

“Many models that exist around the world should be studied and analyzed, that is the basis of our reflection,” Toni Berthel, committee president and a member of the Swiss association for addiction, is quoted as saying by the ATS news agency.

Berthel confirmed information reported on Sunday by the Schweiz am Sonntag weekly newspaper about the new look at Swiss cannabis laws.

Spain next and a matter of perception from El País:

95 percent of Spaniards see corruption as institutionalized

  • “Political will is absent” in battle against graft, notes Brussels report

Ninety-five percent of Spaniards believe corruption is generalized, according to the first continent-wide study on the issue by the European Commission. Only respondents in Greece (99 percent) and Italy (97 percent) outdid Spain. The report, which was presented on Monday in Brussels, underscores the magnitude of the issue in Europe: three out of four EU citizens believe corruption is an institutional problem.

In two areas of the survey Spain topped the charts. Asked if the level of corruption has risen in the past three years, 77 percent said yes, more than in the other 27 member states. Two out of every three respondents said that corruption affected their daily lives, more than in any other nation. The survey was conducted in February and March 2013, when a series of corruption scandals involving the government, labor unions, political parties and the monarchy occupied the front pages in Spain.

From TheLocal.es, Coke Zero:

Zero tolerance to Coke plant closures

Thousands of workers from Coca-Cola bottling factories in Spain marched on Sunday in protest at plant closures they say will cost 750 jobs.

In red caps and vests bearing the logo of the giant US drinks company, crowds marched in Madrid and the eastern city of Alicante, where two of the threatened plants are located.

Coca-Cola’s plan to close four of its bottling factories in Spain is expected to lead to 750 workers being laid off and 500 others being offered relocation to other plants.

Another protest from thinkSPAIN:

Nationwide protest over ‘abusive’ electricity costs

THOUSANDS of people across Spain joined in a countrywide protest over rocketing electricity prices on Saturday.

Demonstrations were held in 23 cities, mostly provincial capitals, including Madrid, Valencia, Alicante, Barcelona, Murcia, Málaga, Almería, Granada, Córdoba, Huelva, Sevilla, Cádiz, Jaén, and Las Palmas de Gran Canaria.

Carrying banners calling for Luz a precio justo (‘electricity at a fair price’), the demonstrators clamoured against the government’s forcing the consumer to bear the cost of its own debt with energy suppliers, leaving already hard-pressed householders suffering prohibitive prices.

And an austerian measure from TheLocal.es:

King freezes wages of Queen and Princess

King Don Juan Carlos has gone against the trend of royal secrecy in Spain and publicized the new fixed salaries of his wife Queen Sofía and daughter-in-law Princess Letizia.

It’s the first time the 76-year-old monarch has willingly made information on royal earnings available to Spain’s general public.

In a press release published by Spain’s Zarzuela Palace, the newly-fixed wages of royal family members have been disclosed in detail.

Queen Sofía of Spain will earn €131,739 in 2014, a sum roughly resembling her wages last year but which is no longer determined by so-called representation costs.

As for Letizia Ortiz, wife of Prince Felipe and future queen of Spain, she will receive a grand total of €102,464.

El País schmoozes:

Rajoy looks to 2015 race with soothing pledges for tax reform and stimulus measures

  • PM bashes Rubalcaba for being negative and blames Socialist leader for current “agony”

The Popular Party (PP) on Sunday officially kicked off the beginning of the second half of its current term in government with pledges from Prime Minister Mariano Rajoy to carry out his long-awaited ambitious tax reform and other economic measures to help Spain get back on its feet.

As PP officials begin to look toward the next general elections scheduled for the end of next year, the ruling party has tried to use its three-day political conference in Valladolid to showcase proposed strategies in an effort to win voters’ confidence in its recovery plan. But at the close of national meeting, Rajoy avoided offering any specifics on his plans, but was able to muster rallying cheers from stalwart party members with an unusually aggressive attack on opposition Socialist Party leader Alfredo Pérez Rubalcaba.

The verbal blitzkrieg was seen as an attempt to breathe new life into an increasingly embattled Popular Party, which finds itself bitterly divided on a range of issues, including the government’s proposal for abortion reform; the route that should be taken that would lead to ETA’s eventual demise; and the ongoing public corruption inquiries that have engulfed many of its members.

Italy next, starting with a Bunga Bunga bounceback from New Europe:

Italy: Poll finds Berlusconi-led government would win election

Judges may be convicting him and prosecutors opening yet new probes, but it seems that Italians would yet again elect a Berlusconi-led government it they had to vote now. According to a new poll published in February 3, a center-right alliance led by embattled former Prime Minister Silvio Berlusconi would be the most likely winner if Italians were to vote now under a reform proposal currently before parliament.

The poll, commissioned by newspaper Corriere della Sera and conducted by the Ipsos agency found that potential center-right coalition would get 37.9 percent of the vote, above the 37 percent threshold needed under the new rules being examined to obtain a large winner’s bonus of parliamentary seats without having repeat elections.

The centre left according to the same poll would get 36 percent while Bepe Grillo’s 5-Star protest movement 20.7 percent.

TheLocal.it hyperbolizes:

Five Star bloggers ‘potential rapists’: MP

Italy’s lower house speaker has accused the anti-establishment Five Star Movement of instigating violence and slammed bloggers on the party website as “potential rapists” following a flurry of sexist abuse online.

Laura Boldrini was commenting on a post on the Facebook page belonging to the Five Star Movement’s leader Beppe Grillo, which asked on Saturday “what would you do if you found Boldrini in your car?”

The question, which accompanied a satirical video and was taken up on the movement’s official website, sparked a series of abusive comments, including calls for Boldrini to be raped.

The post was an “instigation to violence, just look at the comments it prompted, nearly all of which were made in a sexist context,” Boldrini said in an interview late Sunday on Italian television.

And from TheLocal.it, ubiquity:

Almost all Italians think corruption is rife

Almost all Italians believe that corruption is widespread in their country, according to the European Commission’s anti-corruption report released on Monday. While some progress has been made, the EU’s executive body highlighted a number of areas in need of urgent action.

Ninety-seven percent of Italians think that corruption is rife, second only to Greece with 99 percent and well above the European average of 76 percent, the European Commission report found.

Bribery and connections are the easiest ways to get certain public services, 88 percent of Italians believe, compared to 73 percent of Europeans.

People in Italy, however, are more optimistic than those in Greece, where 93 percent of the population believe bribery is the easiest way to get what you want, compared to 92 percent in Cyprus and 89 percent in Slovakia and Croatia.

TheLocal.it again, with oldies and not-so-goodies:

Crisis-hit Italians survive on out of date food

Italians may be well-known for their healthy diet, but more are eating food well past its use-by date as the effects of the financial crisis continue to bite, according to new figures from Coldiretti, the Italian farmers association.

Fifty-nine percent of Italians, or six out of ten, eat out of date food, with fifteen percent eating food that is a month or more old, the association revealed.

Eight percent are eating food that is way beyond a month after its use-by date, while 34 percent are consuming products up to a week old and two percent never check expiry dates.

Coldiretti said the “worrying trend” poses a “significant risk to health”

After the jump, the latest on the Greek crisis, Ukrainian uncertainty, Russia currency freefall, Indian action, Thai troubles continue, Vietnamese expectations, more Chinese warning signs and neoliberal moves, Abenomics fails, pesticide alerts and other environmental woes, and the latest edition of Fukushimapocalypse Now!. . .and more:  Continue reading

Headlines of the day I: Spies, pols, zones, threats


We begin today’s collection of headlines from the worlds of espionage and security with on ominous note with this entry from Threat Level:

Judges Poised to Hand U.S. Spies the Keys to the Internet

How does the NSA get the private crypto keys that allow it to bulk eavesdrop on some email providers and social networking sites? It’s one of the mysteries yet unanswered by the Edward Snowden leaks. But we know that so-called SSL keys are prized by the NSA – understandably, since one tiny 256 byte key can expose millions of people to intelligence collection. And we know that the agency has a specialized group that collects such keys by hook or by crook. That’s about it.

Which is why the appellate court challenge pitting encrypted email provider Lavabit against the Justice Department is so important: It’s the only publicly documented case where a district judge has ordered an internet company to hand over its SSL key to the U.S. government — in this case, the FBI.

If the practice — which may well have happened in secret before — is given the imprimatur of the U.S. 4th Circuit Court of Appeals, it opens a new avenue for U.S. spies to expand their surveillance against users of U.S. internet services like Gmail and Dropbox. Since the FBI is known to work hand in hand with intelligence agencies, it potentially turns the judiciary into an arm of the NSA’s Key Recovery Service. Call it COURTINT.

The Guardian partially discloses:

Microsoft, Facebook, Google and Yahoo release US surveillance requests

  • Tech giants turn over data from tens of thousands of accounts
  • Limited disclosure part of transparency deal made last month

Tens of thousands of accounts associated with customers of Microsoft, Google, Facebook and Yahoo have their data turned over to US government authorities every six months as the result of secret court orders, the tech giants disclosed for the first time on Monday.

As part of a transparency deal reached last week with the Justice Department, four of the tech firms that participate in the National Security Agency’s Prism effort, which collects largely overseas internet communications, released more information about the volume of data the US demands they provide than they have ever previously been permitted to disclose.

But the terms of the deal prevent the companies from itemising the collection, beyond bands of thousands of data requests served on them by a secret surveillance court. The companies must also delay by six months disclosing information on the most recent requests – terms the Justice Department negotiated to end a transparency lawsuit before the so-called Fisa court that was brought by the companies.

MintPress News cozies up:

Google’s New Partnership With Law Enforcement Disquiets Privacy Advocates

What’s concerning most about the system for privacy advocates is that the information, which includes the photos and videos, is shared directly by Google with law enforcement.

Google may be in bed with U.S. government and law enforcement agencies more than the American public may have realized.

While the tech giant maintains it was unaware of the extent that the National Security Agency was using its cookie technology to gather information about the public, it was recently discovered that the company filed for two patents last year that actually benefit law enforcement.

Known as “Mob Source Phone Video Collaboration” and “Inferring Events Based On Mob Sourced Video,” the patents are for a system that would identify when and where a “mob” event takes place and would send multimedia alerts to those with a vested interest in the event, namely law enforcement and news agencies.

According to the patents, a “mob” event is anything that attracts an “abnormal” amount of attention in the form of photos and videos, which is determined by the system’s monitoring photos and videos for similar time and location stamps.

PCWorld ponders prosecution:

German federal prosecutor considers formal NSA investigation

Germany’s federal prosecutor is considering if there is enough evidence to warrant a formal, criminal investigation into the German government’s alleged involvement in the U.S. National Security Agency (NSA) data collection program, a spokeswoman said Monday.

Privacy and human rights campaigners including the Chaos Computer Club (CCC), the International League for Human Rights (ILMR) and Digitalcourage on Monday filed a criminal complaint against the German federal government and the presidents of the German secret services for their alleged involvement in illegal and prohibited covert intelligence activities, they said in a news release.

The complaint also targeted German Chancellor Angela Merkel, the German Minister of the Interior as well as U.S., British and German secret agents who are all accused of violating the right to privacy and obstruction of justice by cooperating with the NSA and its British counterpart GCHQ to electronically spy on German citizens, they said.

The Guardian mulls disclosure:

Intelligence agencies should be subject to FoI, says information commissioner

  • John McMillan says FoI Act ‘can suitably apply to any agencies, parliamentary departments and the intelligence agencies’

Australia’s information commissioner has called for intelligence agencies to be subject to freedom of information laws and has expressed concern about “mixed messages” on open government and transparency.

In a wide-ranging interview with Guardian Australia on the state of privacy and freedom of information in Australia, the information commissioner, Professor John McMillan, said intelligence agencies should be subject to freedom of information (FoI) legislation.

“My preference would be at least for the FoI Act to apply to the intelligence agencies,” he said.

PCWorld hacks away:

Prominent cryptographers targeted by malware attacks

Belgian cryptographer Jean-Jacques Quisquater had his personal computer infected with malware as the result of a targeted attack that’s believed to be related to a security breach discovered last year at Belgian telecommunications group Belgacom. According to him, other cryptographers have also been targeted by the same attackers.

Belgacom, whose customers include the European Commission, the European Parliament and the European Council, announced in September that it had discovered sophisticated malware on some of its internal systems.

German news magazine Der Spiegel reported at the time, based on documents leaked by former U.S. National Security Agency contractor Edward Snowden, that British intelligence agency Government Communications Headquarters (GCHQ) was responsible for the attack on Belgacom as part of a project code-named Operation Socialist.

The magazine later reported that GCHQ used packet injection technology called Quantum Insert developed by the NSA to target network engineers from Belgacom and other companies when they visited the LinkedIn and Slashdot websites. This technology can impersonate websites and can force the target’s computer to visit an attack server that uses exploits to install malware.

National Post denies:

Stephen Harper’s top security advisor denies reports of illegal spying on Canadians using airport Wi-Fi

The head of Communications Security Establishment Canada defended the collection of “metadata” on Monday, saying it helped identify foreign adversaries without snooping on the private communications of Canadians.

Testifying before the Standing Senate Committee on National Security and Defence, John Forster shot back against allegations of overzealous government electronic surveillance that have arisen as a result of leaks by Edward Snowden.

In a rare public appearance that follows unprecedented scrutiny of the ultra-secretive spy agency, Mr. Forster denied CSEC had been monitoring the private communications of Canadians as it vacuumed up metadata, or “data about data.

While CBC News equivocates:

Spy agencies, prime minister’s adviser defend Wi-Fi data collection

  • ‘It’s data about data,’ Stephen Harper’s national security adviser says of metadata collection

The head of Canada’s communications surveillance agency defended its use of metadata Monday and argued a test using Canadian passengers’ data — revealed by CBC News last week — didn’t run in real-time and wasn’t an actual operation.

John Forster, chief of the Communications Security Establishment Canada, defended the cybersecurity agency over revelations contained in a document released by U.S. National Security Agency whistleblower Edward Snowden.

Forster appeared before the Senate national defence committee amid the report that CSEC used airport Wi-Fi to track the movements of Canadian passengers, including where they’d been before the airport.

Pushing for a conclusion with TheLocal.se:

Prosecutor pressed to speed up Assange case

The Swedish prosecutor handling the Julian Assange case lashed out on Monday to calls urging him to push on with efforts to interrogate the whistle blower over sex crimes allegations stemming from a 2010 visit to Sweden.

Assange, who is suspected of rape and sexual assault involving two Swedish women in connection with a visit to Stockholm in 2010, remains holed up in the Ecuadorian embassy in London where he has been for the last 18 months.

But Swedish MP Johan Pehrson, legal policy spokesperson for the Liberal Party (Folkpartiet), said on Sunday there was no point letting such a case fester.

“This is an exceptional case,” he said on the Agenda programme on Sveriges Television (SVT). “Which gets you thinking whether the prosecutor shouldn’t take one more look at it and take care of it once and for all.”

Military/industrial profiteering from Spiegel:

Arms Exports: Berlin Backs Large Defense Deal with Saudi Arabia

Berlin has often been criticized in recent years for selling weapons to questionable regimes. Now, the German government is backing a billion-euro deal for 100 patrol boats.

The German government has often drawn serious criticism for supporting defense deals with countries known to have democratic deficiencies. In the latest controversial move, SPIEGEL has learned that the new government in Berlin wants to secure a major defense deal with Saudi Arabia by offering Hermes export credit guarantees.

The information comes from a classified letter from a senior official in the Finance Ministry to the German parliament’s budget committee. The letter states that the German government intends to provide guarantees for the planned export of more than 100 patrol and border control boats to the Gulf state with a total value of around €1.4 billion ($1.9 billion). In the letter, official Steffen Kampeter writes of the “high importance in terms of economic and employment” of the deal, which includes contracts for the Bremen-based Lürssen Shipyard. Kampeter, a politician with Chancellor Angela Merkel’s conservative Christian Democratic Union, asked for the “confidential handling of the business data” because negotiations are still in progress and competition is expected from other countries.

Wasting it profligately, via Aero-News Network:

New C-27J Cargo Planes Stored In Arizona Boneyard

  • Military ‘Has No Use’ For For The Spartans

New C-27J Spartan cargo planes ordered by the U.S. Air Force are being delivered … directly to a storage “boneyard” in the Arizona desert. There are reportedly nearly a dozen new Spartans sitting on the ramp at Davis-Monthan AFB in Tucson, AZ.

The Dayton Daily News reports that the Air Force has spent some $567 million to acquire 21 new Spartans since 2007, but has found that the Air Force does not have missions for many of the aircraft.

The planes had originally been acquired because of their ability to operate from unimproved runways. But sequestration forced the Air Force to re-think the airplane’s mission, and it determined that they were not a necessity, according to an analyst with the Project for Government Oversight.

World Socialist Web Site gets right to it:

Germany, US push aggressive policies at Munich Security Conference

This weekend, some 400 leading international political and military figures and representatives of defense contractors, banks and corporations gathered at the Munich Security Conference (MSC) to discuss the global military and security situation. Both John Kerry and Chuck Hagel participated, marking the first time the US secretaries of state and defense both attended the conference.

The MSC featured a series of speeches by top German officials announcing an aggressive military policy, effectively repudiating the traditional restraints on German militarism that have existed since the collapse of the Nazi regime at the end of World War II. The belligerent tone of the conference was laid down by the former East German pastor and current president of Germany, Joachim Gauck.

Declaring that Germany must stop using its past—i.e., its role in starting two world wars in the 20th century—as a “shield,” Gauck called for the country’s armed forces to be used more frequently and decisively. “Germany can’t carry on as before,” Gauck argued. It was necessary to overcome German indifference and European navel-gazing, he said, in the face of “rapid” and “dramatic” new threats to the “open world order.”

And that complex again, via the London Telegraph:

China and Russia help global defence spending rise for first time in five years

  • New forecasts show China’s defence spending will outstrip Britain, Germany and France combined by 2015

Soaring defence budgets in China and Russia mean global military spending is growing for the first time in five years, according to new forecasts.

Spending across Asia and the Middle East is surging even as the military powers of Europe and the US are forced to scale back dramatically in the face of austerity cuts – contributing to a steady change in the balance of military power.

The figures were disclosed as the secretary general of Nato issued a stark warning that the West will cede influence on the world stage because of its falling spending.

After the jump, Asian zone and militarism crises, censorship run amok, an assault on academic freedom, censorship in Egypt, a Spanish muckraker fired, military corruption, the German government hacked, and more. . . Continue reading