Category Archives: Class

Headlines of the day II: MegaloEconoPoliFuku


A verrryyyy long collection, with the latest global economic, political, and environmental news for your perusal.

First up, playing monopoly with Sky News:

Comcast To Buy Time Warner Cable For $45bn

The deal would create an entertainment superpower with 32 million TV subscribers, but there are calls for regulators to step in.

The two biggest US cable companies are joining forces in a $45bn (£27bn) deal, creating an entertainment giant with some 32 million TV subscribers.

Comcast’s merger with Time Warner Cable was confirmed at the start of trading on Thursday.

Its offer, which is subject to regulatory approval, is about 17% higher than the company’s closing share price on Wednesday.

The takeover bid trumps an earlier $38bn (£23bn) offer from Charter Communications, which appeared to concede defeat by announcing: “We’ve always maintained our greatest opportunity to create value for shareholders is by executing our current business plan.”

More from Business Insider:

What’s in it for Comcast Cable shareholders?

“This combination creates a company that delivers maximum value for our shareholders,” said Comcast CEO Brian Roberts.

How are they going to do that?

The company explains in one sentence that probably has every Comcast and Time Warner Cable employee nervous.

“The transaction will generate approximately $1.5 billion in operating efficiencies and will be accretive to Comcast’s free cash flow per share while preserving balance sheet strength.”

“Operating efficiencies” usually means the closing and combining offices, which also often comes with job cuts.

Still more from The Guardian:

Comcast takeover of Time Warner Cable ‘will throttle choice on the web’

  • Angry consumer groups say proposed $45.2bn mega-deal will drive up costs for millions – and call on FCC to block takeover

Consumer groups reacted angrily to the merger of cable giant Comcast and Time Warner Cable on Thursday, claiming the combination could “throttle” choice on the internet.

Comcast’s proposed $45.2bn takeover of TWC will create a media behemoth that will dominate broadband internet access across the US. Comcast, which owns NBC Universal, will also cement its position as the pre-eminent force in cable TV.

Jodie Griffin, senior staff attorney at consumer rights group Public Knowledge said: “This is a deal that needs to be blocked.” She said Comcast was likely to use the extra leverage to “drive up costs and reduce choices for consumers.”, and claimed the new company would be too powerful, becoming a “gatekeeper” capable of “throttling competition.”

And from In These Times, a symbolic action taken years too late:

It’s Official: Obama Signs Minimum Wage Hike for Some Federal Contract Workers

Today, President Barack Obama honored his promise from last month’s State of the Union address to raise the minimum wage for some workers indirectly employed by the federal government. In a new executive order, he raised the minimum wage from $7.25 to $10.10 an hour, effective Jan. 1, 2015. The White House estimates the order will affect hundreds of thousands of workers employed by private companies with government contracts.

“Nobody who works full time should have to live in poverty,” Obama said during a signing ceremony at the White House. He used the ceremony to repeat his calls for Congress to raise the federal minimum wage for all workers and for state and local governments and private businesses to also act to boost the income of low-wage workers.

Labor groups and union supporters reported they were pleased with the final shape of the executive order.

From The Hill, reversing idiocy:

Senate reverses pension cut

The Senate on Wednesday sent legislation to President Obama’s desk that would repeal the controversial $6 billion cut to military pensions.

The Senate overwhelmingly approved the measure in a 95-3 vote, undoing the spending cut that Congress had approved two months prior in the December budget deal.

The only senators to vote against the bill were Tom Carper (D-Del.), Dan Coats (R-Ind.) and Jeff Flake (R-Ariz.).

The legislation passed in the House just a day earlier in a 326-90 vote.

From MintPress News, necessary action:

Justice Department Sued Over Secretive JPMorgan Settlement

The agreement settled both “actual and potential” civil claims against the company brought by five federal agencies and several state attorneys general, thus offering broad immunity for years.

A public interest group is suing the Department of Justice and Attorney General Eric Holder over the agency’s recent record-busting settlement with JPMorgan Chase for the bank’s fraudulent conduct leading up to the 2007-08 bursting of the housing bubble and subsequent meltdown of the financial industry.

Better Markets, a watchdog group based here, alleges that the Justice Department broke both federal law and constitutional mandate when it agreed to and finalized the $13 billion settlement in November. The agreement process, reportedly decided upon personally by Holder and JPMorgan CEO Jamie Dimon, included no judicial oversight, despite what critics say are multiple statutory obligations to do so.

“There are certain statutes regarding certain violations of law that expressly state that the Department of Justice must seek court approval, and then there are others where it’s silent,” Dennis Kelleher, the head of Better Markets, told MintPress while announcing the lawsuit on Monday.

CNBC frets:

Wealthy more worried about being seen as wealthy

  • Is success being vilified in America? The successful seem to think so.

A new poll from American Express Publishing and Harrison Group finds that 1 percenters no longer like to be seen as such.

One-third of members of the group said they “like it when others recognize me as wealthy.” Though that number (taken in the fourth quarter of 2013) may sound high, it’s down from 40 percent a year earlier. And it’s far below the 53 percent who agreed with the statement in 2010.

Fully 28 percent say they worry about “being scorned for being in the top part of the economy,” versus 24 percent who were concerned about that in the first quarter of 2013.

From USA TODAY, that old hard times intolerance [the first of several in today’s compendium]:

Immigration debate is reignited in Fremont, Neb.

Voters in Fremont, Neb., are still trying to curb illegal immigration.

Residents voted 60%-40% on Tuesday to re-approve an ordinance that requires property owners not to rent houses or apartments to illegal immigrants and requires renters to declare their legal residency. Landlords who violate the ordinance face fines.

Fremont has a complicated history with the ordinance, which thrust this city of 26,000 people near Omaha into the national spotlight in 2010, when residents first approved the law after the City Council defeated the proposal. The law also requires employers to verify the legal status of employees; that part of the law is in effect.

After voters approved the measure, the City Council put the law on hold when the Nebraska ACLU and other groups sued. Lower courts upheld the law, and the council sent the housing portion back for another vote of the people.

Al Jazeera America protests:

Portland, Ore., residents tell mayor: ‘Stop arresting homeless people’

Residents of Portland, Ore., gathered in front of City Hall on Tuesday to protest the government’s treatment of its homeless population. The group, a self-described “angry mob,” carried pitchforks and torches while demanding that Mayor Charlie Hales end policies that criminalize homelessness.

The city government has come under fire in recent months for enforcing an ordinance that prohibits camping on public property, which critics say unfairly targets the homeless.

A 2013 city count found nearly 1,900 individuals in the Portland metropolitan area to be homeless and unsheltered, a 10 percent increase from 2011.

From PandoDaily, paying the piper:

The Wolf of Sesame Street: Revealing the secret corruption inside PBS’s news division

On December 18th, the Public Broadcasting Service’s flagship station WNET issued a press release announcing the launch of a new two-year news series entitled “Pension Peril.” The series, promoting cuts to public employee pensions, is airing on hundreds of PBS outlets all over the nation. It has been presented as objective news on  major PBS programs including the PBS News Hour.

However, neither the WNET press release nor the broadcasted segments explicitly disclosed who is financing the series. Pando has exclusively confirmed that “Pension Peril” is secretly funded by former Enron trader John Arnold, a billionaire political powerbroker who is actively trying to shape the very pension policy that the series claims to be dispassionately covering.

In recent years, Arnold has been using massive contributions to politicians, Super PACs, ballot initiative efforts, think tanks and local front groups to finance a nationwide political campaign aimed at slashing public employees’ retirement benefits. His foundation which backs his efforts employs top Republican political operatives, including the former chief of staff to GOP House Majority Leader Dick Armey (TX). According to its own promotional materials, the Arnold Foundation is pushing lawmakers in states across the country “to stop promising a (retirement) benefit” to public employees.

Despite Arnold’s pension-slashing activism and his foundation’s ties to partisan politics, Leila Walsh, a spokesperson for the Laura and John Arnold Foundation (LJAF), told Pando that PBS officials were not hesitant to work with them, even though PBS’s own very clear rules prohibit such blatant conflicts. (note: the term “PBS officials” refers interchangeably to both PBS officials and officials from PBS flagship affiliate WNET who were acting on behalf of the entire PBS system).

United Press International sues:

Magazines sue Colorado over marijuana advertising restrictions

Two publications are challenging Colorado’s recreational marijuana rules about advertising, with a lawsuit filed in federal court, records said.

The national magazine High Times and the local weekly magazine Westword sued the state of Colorado Monday because of rules stating recreational marijuana stores can advertise only in publications aimed at a readership over the age of 21, the Denver Post reported Wednesday.

The lawsuit argues the rules, which also apply to outdoor and broadcast advertising, are restrictions of free speech, and notes there are no similar restrictions on medical marijuana businesses.

It marks the first time the state’s advertising rules have been challenged in court.

From MintPress News, a stunning development:

HIV/AIDS Cure May Be Found In Marijuana: Study

For years, many Americans with HIV/AIDS have used medical marijuana to relieve some common symptoms associated with the illness such as nausea, vomiting and appetite loss.

Now, a new study published last week in the journal AIDS Researcher and Human Retroviruses found that a daily dosage of marijuana’s psychoactive ingredient tetrahydrocannabinol, or THC, may actually fight the HIV/AIDS virus itself.

In this most recent study, the team of researchers from Louisiana State University found that when HIV-infected monkeys were given THC daily during a 17-month time period, the monkeys had less damage in the immune tissue of their gut — an important site of HIV infection — than those given a placebo.

Researchers also reported that they found consuming THC had improved the monkeys immune tissue at a gene level as well, and was in a way, preventing the disease from killing healthy immune cells — a discovery other studies have found as well.

From the McClatchy Washington Bureau, blowing smoke:

Marijuana gets a show of support on Capitol Hill

  • Eighteen House members ask Obama to reclassify the banned drug

In the biggest show of support yet for legalizing marijuana on Capitol Hill, 18 House members today asked President Barack Obama to reclassify the drug, removing it from a list of banned substances deemed to have no medical value.

The letter, distributed by Oregon Democratic Rep. Earl Blumenauer, argued that including marijuana in the Schedule 1 list of banned drugs, along with heroin and LSD, disregards the laws of 20 states that allow pot to be used for medical purposes.

It comes after Obama last month said that he doesn’t believe that marijuana is any more dangerous than alcohol.

MintPress News cashes out:

Banking Regulations For Marijuana Industry “Imminent”

“Without access to basic banking services, many legitimate cannabis businesses are forced to manage sales, payroll, and even tax bills entirely in cash.”

On Tuesday U.S. Rep. Denny Heck, D-Olympia, Wash., said the federal government’s new guidance for banks and bank regulators will be released “imminently.”

What Heck is referring to is Attorney General Eric Holder’s pledge that the Justice Department and the Treasury Department would issue guidance “very soon” to banks on how they can work with marijuana businesses.

Though the guidance had not been issued by the time of this article’s publication, Heck, a member of House Committee on Financial Services, who along with Congressman Ed Perlmutter of Colorado has pressed for marijuana banking reform, said legal marijuana businesses will be provided with a “full range of banking service, including accepting credit cards, direct depositing payroll checks and more,” under the guidance.

In other words, marijuana-related businesses will no longer be forced to operate on a cash-only basis.

On to latest in the global neoliberal trade agreement games from Jiji Press:

Japan, U.S. to Hold Working-Level TPP Talks Next Week

Working-level officials of Japan and the United States will meet in Japan next week to discuss sticky issues in the Trans-Pacific Partnership free trade talks ahead of key four-day TPP ministerial talks in Singapore from Feb. 22, Japanese government sources said Wednesday.

Acting Deputy U.S. Trade Representative Wendy Cutler will arrive in Japan on Monday and hold talks with Hiroshi Oe, Japan’s deputy chief representative in the TPP negotiations, and other officials, according to the sources.

The two sides are expected to discuss the handling of tariffs on farm products and issues related to automobile trade, the sources said.

Another deal, with problems, via Deutsche Welle:

Tripping over TTIP: Obstacles overshadow EU-US trade pact

  • With talks on the EU-US transatlantic free trade deal set to continue next month, this week’s outrage over a European Parliament vote on genetically modified corn will hardly be the last obstacle negotiators face.

This coming Monday (17.02.2014), EU trade chief Karel de Gucht and his US counterpart Michael Froman are scheduled to meet in Washington to discuss the Transatlantic Trade and Investment Partnership (TTIP), a transatlantic free trade area. They are expected to make a political assessment of the past three rounds of US-EU trade talks and to discuss the upcoming fourth round of negotiations in March.

The pact would unify standards and licensing procedures across a EU-US trade zone and would waive tariffs on goods traded between the EU and the US. According to the Munich-based IFO institute, the treaty will create up to 400,000 new jobs in Europe – 110,000 of them in Germany alone. A done deal, it would seem.

But the deal is far from done: the EU and the US differ over a wide variety of issues, one of which is genetically modified food. On Tuesday (11.02.2014), a new type of genetically modified corn from the US was approved by the European Parliament amid great controversy. The decision paves the way for compromise over one of the differences in EU-US consumer attitudes that has been a stumbling stone in TTIP negotiations.

But opponents of the trade pact are becoming more vocal, and more debates over standards, consumer protection, cultural protectionism threaten to erupt when EU-US negotiators get down to the deal’s fine print and put the agreement up for domestic scrutiny.

From Canada, riches spurned from South China Morning Post:

Canada scraps millionaire visa scheme, ‘dumps 46,000 Chinese applications’

Tens of thousands of Chinese millionaires in the queue will have their applications scrapped and their application fees returned

Tens of thousands of Chinese millionaires face an uncertain future after Canada’s government moved to scrap its controversial investor visa scheme, which has allowed waves of rich Hongkongers and mainland Chinese to immigrate since 1986.

The surprise announcement was made in Finance Minister Jim Flaherty’s budget, delivered to parliament in Ottawa on Tuesday. Tens of thousands of Chinese millionaires in the queue for visas will have their applications “eliminated” and their fees returned.

The announcement came less than a week after the South China Morning Post revealed how the scheme was overwhelmed by an influx of applications from mainland millionaires at Canada’s Hong Kong consulate. Applications to the scheme were frozen in 2012 as a result, as immigration staff struggled to clear the backlog.

ANSAmed covers a ploy:

EU and southern Europe in re-industrialization pact

  • Italy, Spain, Portugal heads of State meet at COTEC in Lisbon

An EU Industrial Compact adopted in January has led to a ‘pact’ between the European Commission and southern European countries to speed up the re-industrialization of Europe by exploiting the first signs of economic recovery, European Commission Vice President Antonio Tajani made known in a joint statement with ministers from Italy, Spain and Portugal on Wednesday in Lisbon.

The statement was issued on the sidelines of the annual COTEC conference, which was attended by Italian President Giorgio Napolitano, Spanish King Juan Carlos, and Portuguese President Anibal Cavaco Silva.

The aim of the Industrial Compact is for the manufacturing sector to make up 20% of EU GDP, and this can be achieved by speeding up innovation and marketing, COTEC experts from Italy, Spain and Portugal said.

And from MintPress News, more of that old hard times intolerance:

The Rebirth Of European Racism

The mass influx of migrants has triggered a wave of nationalistic fervor goaded by public statements of right-wing leaders.

Bulgaria has recently seen a surge in xenophobic attacks since a wave of Syrian refugees escaping the horrors of the war started arriving. But it appears what these refugees have found in Bulgaria isn’t much better than what they left behind.

Last year, roughly 11,600 migrants and asylum seekers crossed into Bulgaria from Turkey, most of them Syrian. Human rights organizations expect tens of thousands to make the journey across the Turkish border in the coming months.

But the mass influx of migrants has triggered a wave of nationalistic fervor goaded by public statements of right-wing leaders. Last November, several neo-Nazi factions, including the local branch of the international Blood and Honor Skinhead network, formed the Nationalist Party of Bulgaria, which says it wants to “cleanse Bulgaria from the foreign and alien immigrant scum that have been flooding the towns of Bulgaria.”

The party has organized so-called “civil patrols,” which stop and check foreigners—and a portion of the general population thinks that this is a good idea.

And an admission from The Guardian:

Migration in the EU ‘has caused strains,’ admits José Manuel Barroso

  • President of the European Commission says free movement is open to abuse but that he will not compromise on citizens’ rights

José Manuel Barroso, the president of the European Commission, will on Friday acknowledge that the free movement of people across the EU has put “unintended strains” on public services and is open to abuse.

In a move to show that Brussels understands the concerns raised in Britain, Barroso will say in London that the commission has recently clarified anti-abuse rules to crack down on sham marriages which allow non-EU citizens to claim benefits as a family member.

But the commission president will make clear in a speech to the London School of Economics that he will not compromise on the right of all EU citizens to move across all 28 member states – one of the four founding pillars which guarantees the free movement of labour, capital, goods and services.

Reuters ponders:

ECB still assessing if lower inflation temporary: Coene

The European Central Bank is awaiting further information, particularly signs on whether the current easing of euro zone inflation is temporary, before it acts, Governing Council member Luc Coene said.

Annual inflation in the 18-member euro zone slowed to 0.7 percent in January from 0.8 percent in December, confounding expectations of a rise and matching a four-year low hit last October.

The ECB left interest rates at record low last week, but put markets on alert for a possible move in March, when the Governing Council should have new forecasts from the bank’s staff extending into 2016.

On to Britain and an ongoing disaster from the London Telegraph:

Flood-hit areas are a ‘battlefield’ as thousands of soldiers are deployed

  • Army chief says that commanding officers are applying ‘battle-group’ skills an ‘unparalleled natural crisis’

Britain is in the grip of an “unparalleled natural crisis”, the Army officer in charge of the flood recovery effort declared on Wednesday.

As hurricane-force winds gusting at more than 100mph lashed the country, forecasters warned that the weather will get worse this weekend as a month’s worth of rain falls in just 48 hours.

The chaos now threatens to derail Britain’s economic recovery, Mark Carney, the Governor of the Bank of England warned. His comments came as storms that have battered the South West and Wales for weeks spread to the north of England for the first time this winter, bringing parts of the country to a standstill.

A bankster alert from the London Telegraph:

RBS warned of credit rating ‘downgrade’

  • Royal Bank of Scotland has been told its credit could be downgraded by ratings agency Moody’s

Royal Bank of Scotland has been warned by one of the world’s main ratings agencies that its credit is at risk of being downgraded following the surprise revelation last month of weaker than expected capital levels.

Moody’s said it had put RBS’s debt “on review for downgrade” pointing to the taxpayer-backed lender’s “weaker than previously anticipated regulatory capital position”.

The move comes after RBS’s unscheduled announcement on January 27 of £3.1bn of extra provisions for issues ranging from its sale of toxic mortgage-backed securities to the mis-selling of payment protection insurance and interest rate hedging products.

More immigration tension, this time from Iceland and the Reykjavík Grapevine:

Newspaper Editor Defends Leaked Memo

Davíð Oddsson – the current co-editor of Morgunblaðið – defended the leak of a memo on an asylum seeker that launched a police investigation as “allowing the public to get the whole picture”.

In an editorial for Morgunblaðið, Davíð – who is also, amongst other things, the former chairperson of the Independence Party, from which Ministry of the Interior Hanna Birna Kristjánsdóttir hails – argued in favour of government offices publishing personal information about refugees as a means to take part in the public discussion about asylum seekers.

“Is it not right that the public get the whole picture?,” Davíð wrote. “That nothing is hidden about what’s at stake?”

As reported, the police are currently investigating the Ministry of the Interior over a leaked memo which impugned the reputations of Nigerian asylum seeker Tony Omos and the mother of his child, Evelyn Glory Joseph. It later came to light that the accusations in the memo were false. Whilst the ministry denies the memo came from their offices, all evidence indicates the ministry as the only source.

On to Norway with EUbusiness and a hard times intolerance rebuke:

Norway rules out referendum on immigration

Norwegian Justice Minister Anders Anundsen on Wednesday ruled out holding a referendum on immigration, rejecting a request by a fellow member of his populist party to follow in the footsteps of Switzerland.

“For many years, the (populist) Progress Party has claimed that more influence should be granted to the citizens. This proposition shouldn’t shock anybody,” Anundsen, a Progress Party minister was quoted by Norwegian news agency NTB during parliamentary question time.

“But within the government coalition, the Progress Party is sticking to our cooperation agreement (with the other right and centre-right parties) and does not plan a referendum on this matter.”

A Finnish proclamation from New Europe:

Finland: OECD wants more structural reforms

Most people would not associate Finland with past high-tech successes like Nokia and Ericksson with structural reforms that have come to be associated with the EU’s troubled south. But the latest report by the Organization for Economic Cooperation and Development (OECD) urged Helsinki to make more efforts in the structural reform to stimulate the economy, Finnish Broadcasting Company YLE reported on Wednesday.

OECD called for more measures in restructuring municipalities, raising retirement age and stricter mortgage rules, in order to promote the economic growth and deal with the aging population in Finland.

The report pointed out that the rising cost of pensions and healthcare for an aging population is one economic to Finland, suggesting higher retirement age and an end to part-time retirement.

On to the Netherlands and significant decision from DutchNews.nl:

The Netherlands to vote against approving the EU’s 2012 accounts

The Netherlands will join Britain and Sweden in voting against giving approval to the EU’s accounts for 2012 because of an increase in mis-spending, finance minister Jeroen Dijsselbloem said on Thursday.

Dijsselbloem told MPs there are still too many uncertainties about the accounts and the error rate in the EU’s books has risen from 3.9% in 2011 to 4.8% in 2012. This is equivalent to €6.7bn being wrongly spent.

The problems centre on funds allocated to reducing the prosperity gap between different members states and money earmarked for rural development. In some cases, projects were not put out to tender properly or they were ineligible for grants under Brussels’ rules.

‘We cannot simply let this happen,’ Dijsselbloem, who also chairs the influential Euro Group, is quoted as saying by news agency ANP.

Germany next and higher hopes from Deutsche Welle:

German government revises growth forecast slightly upwards

The German government has confirmed the Economic Ministry’s 2014 growth outlook, saying that GDP will expand slightly more this year than previously predicted. It said the labor market would benefit as well.

German cabinet ministers on Wednesday adopted the 2014 Annual Economic Report, which included slightly higher expectations for growth in the course of this year.

The government said it expected the national economy to expand by 1.8 percent in 2014, marginally up from an earlier prediction of 1.7 percent. The report said the growth rate would increase to 2 percent next year.

Commenting on the report, conservative lawmakers in Berlin said everything should be done to avoid jeopardizing the growing economic momentum amid problems caused by the country’s energy transition and the aftermath of the protracted eurozone debt crisis.

And from Deutsche Welle, another chorus of that old. . .:

DW exclusive: Germans would vote just like the Swiss on curbing immigration

  • A survey commissioned by Deutsche Welle has found the majority of German citizens would vote for limiting immigration. The survey follows a decision in Switzerland to limit its annual immigration from the EU.

If Germans were to vote in a referendum on limiting immigration to Germany nearly half would support the measure (48 percent ) while almost as many (46 percent) would oppose it, according to a DW commissioned survey.

On behalf of DW, opinion research institute infratest dimap surveyed 1,001 Germans over the age of 18 on February 11-12, 2014. Three percent of those surveyed were undecided.

The survey showed that a particularly high number of Eurosceptic Alternative for Germany (AfD) party members (84 percent) would support an immigration limit. Members of Chancellor Angela Merkel’s Christian Democrats and its sister party the Christian Social Union voted 51 percent for a limit.

Paris next, and plutocratic woes from France 24:

French billionaire senator Dassault loses immunity over graft claims

The French Senate stripped billionaire industrialist senator Serge Dassault of parliamentary immunity on Wednesday, clearing the way for him to face possible criminal charges for allegedly buying votes.

The decision by a Senate committee means that UMP senator Dassault, 88, can be taken into custody for interrogation by judges investigating allegations dating from his 14 years as mayor of Corbeil-Essonnes, a Paris suburb.

The judges suspect Dassault of operating an extensive system of vote-buying that influenced the outcome of three mayoral elections in Corbeil in 2008, 2009 and 2010, which were won either by Dassault or by his successor and close associate Jean-Pierre Bechter, the current mayor of Corbeil.

Dassault is ranked by Forbes magazine as France’s 4th richest man and the 69th richest in the world, with an estimated fortune of 13 billion euros. He heads Dassault Group, which owns France’s prestigious conservative newspaper “Le Figaro” and holds a majority stake in Dassault Aviation, which makes business and military aircraft including the Rafale fighter jet.

Europe Online rakes it in:

Societe Generale nearly triples profits in 2013

France’s second-biggest bank Societe Generale nearly tripled its profits in 2013, helped by higher earnings in both its retail and corporate and investment banking units, the group said Wednesday.

Net income shot up to 2.2 billion euros (3 billion dollars), from 774 million euros in 2012. Group revenues were up 4.3 per cent to 22.8 billion euros.

Societe Generale ended the year on a high note, with fourth-quarter profits of 322 million euros far exceeding analysts’ expectations.

TheLocal.fr parks it:

French taxi drivers call for ‘indefinite strike’

The announcement will not go down well with Parisians or tourists but angry taxi drivers in France are clearly not willing to lie down without a fight. On Tuesday they called for an “indefinite strike”, saying they will take action “anytime, anywhere”.

Paris taxi drivers continued to vent their anger on Tuesday when they brought traffic to a standstill in the centre of the French capital leading to the arrest of dozens of drivers. The trouble comes as unions called for ongoing industrial action.

On Tuesday evening as cabbies fronted up to police at Place de La Concorde union leaders called for an indefinite strike, which could see wildcat blockades and go slows continue for the foreseeable future.

In a joint statement drivers’ unions said they “reserved the right to take action at any place at any time.”

Switzerland, and that old familiar tune from TheLocal.ch:

Populists urge more immigration controls

The Swiss People’s Party (SVP), which spearheaded the initiative narrowly accepted by Swiss voters to limit immigration from the European Union, is set on Friday to push for for more measures to tighten immigration as tensions mount in Switzerland over the issue.

The initiative against massive immigration, backed by 50.3 percent of the electorate, calls for an end to the freedom of movement agreement between Switzerland and the EU and the imposition of quotas.

But the deal is fuzzy on details. It does not, for example, stipulate how many foreigners would be accepted into the country and through what criteria the level of needed workers would be selected for different sectors of the economy.

The SVP is being prodded to clarify how it expects the quota system to work.

Spain next, and an affirmative declaration from thinkSPAIN:

Economy starts to grow as GDP predictions more optimistic

SPAIN’S Gross Domestic Product (GDP) will increase by 0.9 per cent this year and 1.9 per cent next year – signs that the economy is growing once again, according to figures released by the BBVA bank.

This will be enough for creation of ‘sustainable’ employment to begin, says the entity, but it warns that jobless figures are unlikely to drop below 25.6 per cent this year and 24.8 per cent in 2015.

Consumer spending in Spain is expected to rise in 2014 by 0.9 per cent and by 1.3 per cent next year, with lack of national demand gradually ceasing to pose barriers to micro-economic growth over the next two years and ongoing efforts in increasing exports will set the scene for the economy to begin its recovery, the BBVA reveals.

ANSAmed has a harsher take:

Spain: fewer jobs, lower wages two years after reform

  • Trade unions and ILO slam reform, OECD praises it

Two years to the day from Spain’s last labor reform, there are fewer jobs, more long-term unemployed, and fewer people paying into social security.

A negative balance according to trade unions and a ‘’not very encouraging’‘ picture according to the Savings Banks Foundation (Funcas), but the government says the reform is beginning to have positive effects within the context of a recovering economy.

Jobless benefit claims totaled 4,599,829 people as of January 2012, one month before the labor reform was enacted. Two years later, that number is at 4,814,435, up by 241,606 people or +4.6% as of January 2014. In the same period, the number of workers paying into the social security fund dropped by 769,627 people, or -4.5%, to a total of 16,176,610 people. A quarterly report by national statistics bureau INE showed 5,273,600 were unemployed when the reform was enacted in the fourth quarter of 2011, a number that rose to 5,896,300 in the same period of 2013, equal to 622,700 more unemployed people (+11.8%) in two years.

ANSAmed again, and a comedown for high-flyers:

Spain: Iberia; agreement with pilots, salaries down 14%

  • The deal provides for a salary freeze till 2015

Spanish carrier Iberia and pilots’ union Sepla have reached an agreement in principle ending years of conflict which provides for salary cuts by at least 14%.

The agreement also introduces ‘’permanent structural changes’‘ at the company to cut costs and allow the development of the airline and its low-cost company Iberia Express, Iberia’s Iag group said in a statement to the market authority committee on Thursday.

The deal provides for a salary freeze till 2015, previously rejected by pilots, and from that date onwards salary increases depending on the company’s results.

From El País, the bankster blues:

Failed lender CAM wants prison for two of its former executives

  • Bank’s lawyer seeks six to 10 years for ex-director general and oversight committee chief
  • Attorney accuses them of inflating expense accounts and favoring own interests

The lawyer of failed lender Caja de Ahorros del Mediterráneo (CAM), appointed by the government’s bank bailout fund, the FROB, wants prison terms for two of the bank’s former top executives.

Former director general Roberto López Abad and former chairman of the Valencian savings bank’s oversight committee, Juan Ramón Avilés, face the prospect of between six and 10 years in prison for misappropriation of funds and deliberate mismanagement.

The state prosecutor is seeking shorter jail terms for the two men.

And the social counterrevolution prevails, via TheLocal.es:

‘New abortion law to stay’: Spanish lawmakers

A controversial plan to ban women in Spain from freely opting for abortions overcame a key hurdle on Tuesday when lawmakers voted in secret against a motion to scrap the reform.

The plan has outraged pro-choice groups and brought thousands of people out onto the streets to protest, but has sparked division even within the conservative ruling party.

Lawmakers rejected a proposal submitted by the opposition Socialists to “immediately withdraw” the bill by 183 votes to 151. Six lawmakers abstained.

The ruling Popular Party (PP) holds a strong majority in parliament, but the abortion reform, supported by the Roman Catholic Church, has been delayed amid dissent by senior party figures.

And another sign of the times from El País:

House sales fall for third year in a row

  • Property purchases hit record low in December

The Spanish housing market remained locked in a trough in 2013, six years after a massive property bubble burst.

According to figures released by the National Statistics Institute (INE), the number of homes sold last year, excluding public housing schemes, fell 1.2 percent from a year earlier to 276,600 after falling 11.3 percent in 2012 and 18.2 percent in 2011. During the height of the boom over 800,000 houses were exchanged in a year. In December alone sales fell 11.0 from a year earlier to a new monthly record low of 18,619.

The only respite the market has had since boom turned to bust was in 2010 when sales increased 4.8 percent, driven by the purchase of new homes before the introduction of a hike in value-added tax.

And from TheLocal.es, an unconscionable demand:

Cancer drug maker wants 4000% Spanish price hike

Drug manufacturer Aspen Pharmacare has reportedly threatened to stop selling its leukaemia and ovarian cancer treatments in Spain if Health Minister Ana Mato refuses to raise fixed purchase prices by up to 4,000 percent.

According to online daily El Confidencial Digital, the habitual bargaining between Aspen and the Ministry of Health has taken a turn for the worse.

The South African manufacturer of generic medicines is currently undergoing a rapid expansion in international markets.

The company is allegedly insisting on massive price increases for a number of drugs but the Ministry has flatly refused.

On to Lisbon with EUbusiness:

Portugal passes new IMF rescue program review

The International Monetary Fund approved Wednesday the disbursement of 910 million euros ($1.24 billion) to Portugal after the country passed the 10th review of its bailout program.

The disbursement took the country a step closer to the May 2014 end of the European Union-IMF rescue program, with the country’s finances stabilizing.

But the IMF urged the Portuguese government not to give in to pressure to increase public spending and to keep pushing ahead on structural reforms to its finances.

“The Portuguese authorities’ implementation of their Fund-supported program has been commendable,” said IMF Deputy Managing Director Nemat Shafik in a statement.

And on to Italy with the New York Times:

Italy’s Prime Minister Announces Resignation Amid Party Revolt

Prime Minister Enrico Letta of Italy, whose weak coalition government has come under increasing criticism, announced his resignation on Thursday night after his own Democratic Party staged a dramatic insurrection and voted to replace him with the party’s new leader, Matteo Renzi.

The Democratic Party is the largest member of Italy’s coalition government, and the party’s decision to dump Mr. Letta will likely have to be put to a confidence vote in Parliament. Mr. Letta will meet with his cabinet on Friday morning and then present his resignation letter to Italy’s president, making way for Mr. Renzi, 38, to become Italy’s youngest prime minister.

Mr. Renzi, the mayor of Florence who recently won a nationwide primary to become leader of the Democratic Party, has a reputation for boldness and has long been considered Italy’s most promising young politician. He has spoken repeatedly about the need for sweeping political and economic changes. But few analysts foresaw that he would lead a revolt against his party’s sitting prime minister.

AGI has a skeptical take from the populist right:

M5S co-founder doubtful government will last until 2018

M5S co-founder, Gianroberto Casaleggio says he is doubtful the government can last until 2018: “I see a high instability situation. A 2018 forecast is very risky”.

The statement was made at the Termini train station, while Casaleggio was waiting for a train to Milan. Asked by journalists about the likelihood of a government lead by Matteo Renzi to survive until 2018, Casaleggio added: “One can never tell, but the beginning of this year seems to be marked by a great political instability”.

From TheLocal.it, austerian rigor:

Italians drop holiday plans as crisis bites

The number of trips taken by Italians since the economic crisis began in 2008 has plummeted by 48.6 percent, new statistics show.

Last year Italy’s resident population took just over 63 million trips with overnight stays, whether for work or holiday, the country’s statistics agency Istat said this week.

With a population of nearly 60 million one trip per person may seem like a fair ratio, but a broader look shows that Italians have nearly halved travel in recent years.

They took 48.6 percent fewer holidays or work trips last year than five years’ previously, continuing a year-on-year decline.

EUbusiness divides:

Catalonia, Scotland, Venice? Italian party eyes autonomy

The head of Italy’s Northern League on Wednesday said he supported the autonomy bids of Catalonia from Spain and Scotland from Britain, and hoped that the Venice region “will be next on the list”.

Matteo Salvini said two other regions of northern Italy — Lombardy and Piedmont — could also follow suit, adding that it was time to reduce the powers of the European Union and return to “national and regional sovereignty”.

Salvini also said that plans for a coalition of far-right parties including his own at the European Parliament after elections in May were “well advanced”.

The coalition “will not be Eurosceptic but will be in favour of a different Europe,” he said, adding however that he continues to support an abandonment of the euro. “The euro has massacred our economy,” he said.

TheLocal.it inhales:

Italy relaxes cannabis penalties

Italy’s Constitutional Court on Wednesday struck down an anti-drug law from 2006 that imposed tough sentencing for the sale and possession of cannabis, putting it on the same level as heroin and cocaine.

The court declared “illegitimate” the law, which imposed sentences of six to 20 years for trafficking in cannabis, whereas the previous law which is now back in force included sentences of between two and six years.

Leftist lawmakers and civil society representatives immediately hailed the court ruling, saying it would help ease overcrowding in Italian prisons.

The scrapping of the law could affect 10,000 detainees who are in pre-trial detention or serving time and could see a revision of their sentences and their release.

After the jump, deeper misery in Greece, Blackwater creator’s African dreams, Venezuelan violence, Argentine inflation, Indian populist payoffs, parliamentary riots, and bankster woes, Thai turmoil prolonged, Aussie bubble alarms, Chinese marketeering and GMOs, Japanese desperate measures, environmental woes, and a jam-packed Fukushimapocalypse Now! Continue reading

Chart of the day II: Greek joblessness at new high


From the Hellenic Statistical Authority [PDF]:

A0101_SJO02_DT_MM_11_2013_01_F_EN

Chart of the day: When equality polarizes


From The Economist:

Live chart: Sexual equality and income inequality

Program notes:

Meeting of the minds: How sexual equality increases income inequality.

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

Video report: Rallying for compassionate politics


Here’s an important and ongoing story given far too little coverage in mainstream media.

First up, the Contributor Network poses a question:

This Past Saturday, 80K Plus Marched on Raleigh, NC. Why Didn’t We Hear About It?

A crowd declared by organizers to exceed 80,000 showed up to march to protest Republican policies in Raleigh, N.C. Saturday. But you wouldn’t know it if you live outside the area.

Saturday’s big march, organized by the North Carolina NAACP and more than 160 partner organizations, was called “the Historic Thousands on Jones Street (HKonJ) People’s Coalition.” Rev. Dr. William J. Barber II, president of the NC NAACP and convener of HKonJ, said at the march:

“We are black, white, Latino, Native American. We are Democrat, Republican, independent. We are people of all faiths, and people not of faith but who believe in a moral universe. We are natives and immigrants, business leaders and workers and unemployed, doctors and the uninsured, gay and straight, students and parents and retirees. We stand here – a quilt of many colors, faiths, and creeds.”

There were few reports in any national news outlets (though USA Today did carry a report, saying there was “a crowd of between 80,000 and 100,000 people”), but some local media picked up the story.

And for more depth, here’s a report on the rally and its origins from The Real News Network:

80,000+ Moral Monday Protesters Fight For Justice Regardless of Which Party Is In Power

From the transcript:

JESSICA DESVARIEUX, TRNN PRODUCER: Welcome to The Real News Network. I’m Jessica Desvarieux in Baltimore.

So, do you remember the Moral Monday protests? Well, they’re back, and last Saturday, tens of thousands marched in Raleigh, North Carolina, protesting policies enacted by the GOP-controlled legislature and Republican governor Pat McCrory. Participants came from all over the country to join the Forward Together / Moral movement and the HKonJ, which is the Historic Thousands on Jones St. People’s Assembly, to reignite the Moral Monday protests.

Here’s just a quick look at the GOP’s record in North Carolina and what these protesters are fighting against. Since 2010, they’ve ended the earned income tax credit. They’ve also refused to expand Medicaid coverage under the Affordable Care Act. And they cut pre-K programs and passed voter ID laws requiring voter IDs, and eliminated same-day voter registration.

Now joining us to discuss all this is one of the leaders of the movement, Reverend Curtis Gatewood. Reverend Gatewood is the HKonJ Coalition coordinator for the North Carolina NAACP. From 2005 to 2011, Gatewood served as the second vice president of the state’s NAACP.

Thanks for joining us, Rev. Gatewood.

REV. CURTIS E. GATEWOOD, COMMUNITY ORGANIZER, NORTH CAROLINA NAACP: Hello, Jessica. It’s a pleasure to be here.

DESVARIEUX: So, Rev. Gatewood, let’s get right into this. Can you just discuss why your group decided to participate in this march?

GATEWOOD: Well, first, I do feel that there’s a certain level of honor due as I bring greetings on behalf of the North Carolina NAACP State Conference, where we have the conspicuous and prophetic leadership of Rev. William J. Barber[incompr.]II, who in 2005 was elected to become the state NAACP president at the same time, as you mention, I was elected second vice president.

After that, Rev. Barber worked with leaders around the state to form what is now known as HKonJ, the HKonJ Coalition, which is the acronym for Historic Thousands on Jones St. As a part of the coalition, we were able to put together an agenda which was also related to the mission of the NAACP. And by putting together the agenda, we were able to identify experts within the community, for example education equality. Of course, then we would look for experts who speak to those issues–women’s rights, health care for all.

Or so–as we put together this, about a 14-point agenda, which basically now can be broken down to about five categories, we were able to identify issues at the state level. And since that formation of HKonJ and its coalition, we have gone across the state in building and focusing on legislative issues that were served the worst interests of our agenda.

So we first of all want to make clear that we did not just start challenging policies because we have now a majority Republican House. In fact, when we started, we had a majority Democratic House.

Chart of the day: Education and income


While soaring costs of both public and private colleges have soared in the last decade, so too has the price of not gaining a degree. From “The Rising Cost of Not Going to College,” a new report from the Pew Research Center:

BLOG ed wages

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

Chart of the day II: Italian workforce shrinks


And there’s no sign of a letup. From the Italian National Institute of Statistics:

FusionCharts

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

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

Chris Hedges on class war and crisis cults


The Pulitzer-winning journalist talks with Abby Martin for a two-part conversation on RT’s Breaking the Set.

It’s well worth a listen.

From Breaking The Set:

Chris Hedges Part I: Crisis Cults and the Collapse of Industrial Civilization

Program notes:

Abby Martin features an exclusive interview with Pulitzer Prize winning journalist Chris Hedges, concerning areas of extreme poverty that he refers to as ‘sacrifice zones’, as well as the reasons behind the collapse of complex societies.

Chris Hedges Part II: The Military Mind & the Antidote to Defeatism

Program notes:

Abby Martin features Part 2 of her interview with Pulitzer Prize-winning journalist, Chris Hedges, discussing the unsustainable nature of the economic system, the military mind in solving world problems, and the antidote to defeatism.

And a bonus segment from CNN’s Anderson Cooper featuring a subject of te Martin/Hedges conversation.

From CNN:

Glenn Greenwald: I will definitely come back to the U.S.

Program note:

Snowden reporter Glenn Greenwald promises to return to the U.S. despite threats that he will be criminally charged.

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

Chart of the day: American workforce shrinks


From Gallup, yet another clear indication that allegedly declining unemployment rates masks a deeper picture, seen here in the fall of the actual percentage of Americans with jobs, From Gallup:

BLOG Working population

Quote of the day II: The state of American life


From UC Berkeley prof and former Secretary of Labor Robert Reich, writing at his blog:

America’s savage inequality is the main reason equal opportunity is fading and poverty is growing. Since the “recovery” began, 95% of the gains have gone to the top 1 percent, and median incomes have dropped. This is a continuation of the trend we’ve seen for decades. As a result:

(1) The sinking middle class no longer has enough purchasing power to keep the economy growing and creating sufficient jobs. The share of working-age Americans still in the labor force is the lowest in more than thirty years.

(2) The shrinking middle isn’t generating enough tax revenue for adequate education, training, safety nets, and family services. And when they’re barely holding on, they can’t afford to — and don’t want to — pay more.

(3) Meanwhile, America’s rich are accumulating not just more of the country’s total income and wealth, but also the political power that accompanies money. And they’re using that power to reduce their own taxes, and get corporate welfare (subsidies, bailouts, tax cuts) for their businesses.

All this means less equality of opportunity in America.

Obama was correct in December when he called widening inequality “the defining challenge of our time.” He mustn’t back down now even if Democratic pollsters tell him to. If we’re ever to reverse this noxious trend, Americans have to hear the truth.

Quote of the day: From Berkeley’s #1 landlord


Billionaire Sam Zell, the man who ruined the Los Angeles Times and left its employee pension funds holding the bag, says fellow plutocrat Tom Perkins is right: The rich are being persecuted the same way Nazis once persecuted Germany’s Jews.

From a Bloomberg Television interview by Betty Liu  quoted at Zero Hedge:

LIU: Let me ask you about Tom Perkins because you are part of the 1 percent. You are clearly part of the 1 percent. Tom Perkins came out with this – with this letter where he defended the 1 percent and he said, look, we are being persecuted the same as the – as the Nazis were persecuting the Jews. And he was just lambasted and he came on our network and defended it. How did you feel when you read that letter and when you heard his comments?

ZELL: I guess my feeling is that he’s right. The 1 percent are being pummeled because it’s politically convenient to do so. The problem is that the world and this country should not talk about envy of the 1 percent. It should talk about emulating the 1 percent. The 1 percent work harder. The 1 percent are much bigger factors in all forms of our society.

Buying and then ridding himself of the Times and other media owned by the Tribune Co. was only a side venture for Zell, who is one of the nation’s biggest landlords with holdings including the largest share of privately held apartments in Berkeley.

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 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

‘David Simon on America as a Horror Show’


From Moyers and Company:

David Simon on America as a Horror Show

From the transcript:

BILL MOYERS: Watching the president’s speech the other night– he was hopeful, he was upbeat, he was encouraging and inclusive and what he said. But I kept listening and thinking about that speech you had made last fall in Australia where you said what’s happening here in America is “a horror show.” And I wonder, how do you reconcile those two visions of our country?

DAVID SIMON: I don’t think that you can call the American government anything other than broken at this point. And I think the break has come at the legislative level. I mean, that’s the part of the government that has been purchased.

You can buy these guys on the cheap. And the capital’s been at it a long time and the rules have been relaxed. The Supreme Court has walked away from any sort of responsibility to maintain democracy at that level. That’s the aspect of government that’s broken.

And it doesn’t matter whether it’s Obama or Clinton or Bush or anybody at this point. If this is the way we’re going to do business, we’re not going to do business. You know, they’ve paid for it to be inert. And it is inert. And ultimately that aspect of capitalism hasn’t been dealt with in any way.

Chart of the day II: Food stamp need rises


And at the very time funds have been cut by House Republicans. From the Federal Reserve Bank of St. Louis:

BLOG Food stamps

Chart of the day: Soaring French unemployment


From INSEE, the National Institute of Statistics and Economic Studies:

BLOG France