Category Archives: Debt

Bankster greed fueled Ferguson violence


Finally someone connects two critical dots, the violence in Ferguson, Missouri, and the crimes of American banksters and bubble collapse foreclosures.

Pay close attention to this conversation from RT’s The Keiser Report featuring Max Keiser and award-winning investigative journalist Matt Taibbi and you’ll see the extremely close correlations between banking deregulating and oppressive policing on the streets of America’s poorest neighborhoods.

From RT:

American gangsters! Matt Taibbi & Max on suckers buying bogus & big bank mass perjury

Program notes:

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss how some looters are more equal than others as Jamie Dimon gets to keep his mortgage fraud deal with the Department of Justice secret while others get gunned down in broad daylight for lifting a cigarette. In the second half, Max interviews journalist and author, Matt Taibbi about the injustice that follows the wealth divide and how Ferguson, Missouri plays into that.

From BBC 2: ‘Super Rich: The Greed Game’


Broadcast, fittingly, on 1 April 2008 just as the bubble was bursting, this BBC 2 documentary, produced and directed by John O’Kane and narrated by Robert Peston, is a reminder that the modern “wealth creator” is rarely the inventor of some new product that makes our lives better but is rather an expert at manipulating the money game, in which creation of notional riches becomes the end rather than a mere byproduct of their efforts.

And at the center of the debacle were the central banksters, acting to ensure that confidence in currency, the prerequisite for green game players, was bolstered, despite all the screeching alarm bells.

And note that facilitating it all were the so-called “liberal” political parties, with Britain’s Labour Party and the Democrats in the U.S. greased the skids in the 1990s by deregulating financial markets and paving the way to an explosion of hedge fund wealth.

What is particularly galling is the rampant and unalloyed arrogance of the players to whom the rest of us, as one of them offhandedly remarks, are mere riffraff.

From BBC 2 via Underground Documentaries:

Super Rich: The Greed Game

Program note:

As the credit crunch bites and a global economic crisis threatens, Robert Peston reveals how the super-rich have made their fortunes, and the rest of us are picking up the bill.

From wiseguys to banksters, nasty payday loans


Wiseguys call it “the vig,” those extortionate rates guys with names like Vinny or Frankie Fists used to collect on loans you got from your friendly neighborhood loan shark.

But wiseguys have fallen on hard times because Uncle Sam has legitimated those muscular interest rates. And now you get ‘em from your friendly neighborhood corporate bankster.

Indeed, the guys who used to hand out in candy stores and dimly lit pool halls have been replaced by grinning hucksters who operate out of brightly lit storefronts that now outnumber Starbucks and Mickey Ds.

But fear not, John Oliver and Sarah Silverman are on the cash.

From HBO’s Last Week Tonight with John Oliver:

Last Week Tonight with John Oliver: Predatory Lending

Program notes:

Payday loans put a staggering amount of Americans in debt. They prey on the elderly and military service members. They’re awful, and nearly impossible to regulate. We’ve recruited Sarah Silverman to help spread the word about how to avoid falling into their clutches.

What a world! There’s now no separation between underworld and upperworld.

EnviroWatch: Loans, drought, laws, radiation


Today’s first item, via the Guardian, covers the sad but not so surprising:

Leaked World Bank lending policies ‘environmentally disastrous’

  • New ‘light touch’ rules on bank’s $50bn annual lending have been gutted to remove protections, watchdogs claim

Radical plans by the World Bank to relax the conditions on which it lends up to $50bn (£29bn) a year to developing countries have been condemned as potentially disastrous for the environment and likely to weaken protection of indigenous peoples and the poor.

A leaked draft of the bank’s proposed new “safeguard policies”, seen by the Guardian, suggests that existing environmental and social protection will be gutted to allow logging and mining in even the most ecologically sensitive areas, and that indigenous peoples will not have to be consulted before major projects like palm oil plantations or large dams palm go ahead on land which they traditionally occupy.

Under the proposed new “light touch” rules, the result of a two year consultation within the bank, borrowers will be allowed to opt out of signing up to employment safeguards, existing protection for biodiversity will be shredded, countries will be allowed to assess themselves, and harmful projects are much more likely to occur, according to World Bank watchdog groups including the Bank Information Centre (BIC), the Ulu Foundation and the International Trade Union Confederation.

And on to our ongoing coverage of the drought parching the Golden State and the West, first with a scorcher from BBC News:

Two California wildfires destroy 10 homes

Two fast-moving wildfires in California have destroyed 10 homes and have forced the evacuation of hundreds more, US officials say.

In the Sacramento region, a fire has spread to cover an area of about 4,000 acres, while another blaze threatens homes around Yosemite National Park.

The Sacramento fire is around 35% contained, officials told local media.

Months of drought have caused more fires in California this year – some 1,400, twice the usual number.

The Los Angeles Times digs down:

Farmers drilling deeper for water as drought drags on

California’s three-year drought has sparked a surge in demand for wells in the state’s agricultural heartland. With federal and state allocations of surface water reduced to a trickle, growers are searching deeper underground for sources of water to keep their farms from ruin.

The clamor has overwhelmed California drillers and pump installers, forcing some farms to hire contractors from neighboring states.

It’s also setting the stage for more problems later as groundwater supplies are shrinking faster than they can be replenished. In parts of the Central Valley, the water table has plummeted, drying up old wells and sinking the land above, a phenomenon called subsidence.

That’s resulted in even deeper wells that cost hundreds of thousands of dollars to build and require more energy to pump water to the surface. As recently as two decades ago, a well several hundred feet would suffice. Today, large farms are drilling to depths of 2,000 feet in anticipation of falling water levels.

“We’re going bigger horsepower every year,” said Charles Barber, president of Caruthers Pump south of Fresno, who has customers on a three-month waiting list. “We’ve lost 30 feet of groundwater in a year in some places. We keep that up for 10 years and we won’t be farming like this anymore.”

From Al Jazeera America, a crackdown:

Cali water cops: What you gonna do when they come for you?

  • State resources officials are aggressively policing the dire shortage by imposing fines on drought rule violators

But the Los Angeles Times covers the scofflaws:

California officials admit they have incomplete water usage data

When state regulators tried to tally water use across California recently, they didn’t exactly get a flood of cooperation.

Of the 440 water agencies in the state, only 276 provided water consumption data. And officials in San Diego made a point of formally refusing the request, saying the state’s method for measuring water use in California’s second-largest city was “misleading and technically inappropriate.”

The State Water Resources Control Board released the result of its survey earlier this month, showing an 8% increase in water use in Southern California in May while most of the rest of the state was using less water.

And what water there in the Midwest, is increasingly likely to be toxic, reports Common Dreams:

Notorious ‘Neonics’ Pervasive in Midwest Waters: Study

Researchers from the USGS found the insecticides in waterways of nation’s corn, soy region.

A new study has added to mounting evidence against a class of insecticides called neonicotinoids, or “neonics.”

Linked in numerous studies to bee declines, the new research looks at neonics’ impacts on surface water.

Researchers with the U.S. Geological Survey looked at 9 rivers and streams in the U.S. Midwest—home to vast plantings of corn and soybeans as well as widespread use of neonics—in the 2013 growing season.

On to the latest chapter of Fukushimapocalypse Now!, starting with this bit of ominous news from the Asahi Shimbun:

Water leaks continue to plague No. 5 reactor at Fukushima plant

A leak of radioactive water was found in the piping of water used to cool the spent fuel pool in the undamaged No. 5 reactor building of the Fukushima No. 1 nuclear power plant, its operator said on July 19, a sign of possible deterioration in the system.

Tokyo Electric Power Co. said water from the cooling pond leaked, citing comparable levels of the concentration of radioactive substances in the leak and the pool.

A TEPCO employee found a pool of water in each of two boxes–75 centimeters by 50 cm–that house a control valve in the cooling water piping system on the fifth floor of the No. 5 reactor building at 1:25 a.m. on July 19.

From the Asahi Shimbun again, why are we not surprised?:

Restarts of reactors in Ehime delayed due to insufficient safety standards

Restarts of reactors at the Ikata nuclear power plant in Ehime Prefecture will be delayed until at least next year because the site does not meet safety standards.

Its operator, Shikoku Electric Power Co., is being forced to construct a new emergency headquarters building at the facility as the current one, which was completed after the March 2011 Fukushima nuclear disaster, fails to meet the new criteria.

The new building is scheduled to be completed in January 2015 at the earliest. Given that procedures for safety screening take time, the utility said it was doubtful the reactors could be reactivated this fiscal year, which ends in March 2015.

From Kyodo News, a measure sure to inspire confidence — or not:

Local gov’ts give iodine tablets to residents as reactor restart looms

Local governments started Sunday handing out iodine tablets to residents living within 5 kilometers of an offline nuclear power plant in Kagoshima Prefecture, southwestern Japan, that may restart in the fall.

It is the first time iodine tablets have been distributed under Nuclear Regulation Authority guidelines instituted following the 2011 Fukushima nuclear disaster. Iodine tablets help protect thyroids from radiation.

The move by the Kagoshima prefectural and Satsumasendai city governments came after Kyushu Electric Power Co.’s Sendai plant cleared a safety hurdle key to its restart earlier this month.

The Asahi Shimbun withdraws:

Plan dropped for land purchases to host nuclear debris storage sites

In the face of strong opposition, the government has abandoned its plan to purchase all of the land needed to build temporary storage sites for radioactive debris, sources said.

The idea was dropped after some landowners at prospective sites refused to sell, fearing the storage facilities located near the stricken Fukushima No. 1 nuclear power plant would end up being permanent.

Instead of purchasing all of the plots, the government now plans on leasing some of the land from landowners.

And from the Japan Times, looking across the Pacific:

Problems dog plans for U.S. nuclear plants

The U.S. nuclear industry has started building its first new plants in decades using prefabricated Lego-like blocks meant to save time and money and revive the once promising energy source.

But so far, it is not working.

Quality and cost problems have cropped up again, raising questions about whether nuclear power will ever be able to compete with other electricity sources. The first two reactors built after a 16-year lull, Southern Co.’s Vogtle plant in Georgia and SCANA Corp.’s VC Summer plant in South Carolina, are being assembled in large modules. Large chunks of the modules are built off-site, in an effort to improve quality and avoid the chronic cost overruns that all but killed the nuclear industry when the first wave of plants was being built in the 1960s and 1970s.

Analysts say engineers created designs that were hard or impossible to make, according to interviews and regulatory filings reviewed by AP. The factory in Louisiana that constructed the prefabricated sections struggled to meet strict quality rules. Utility companies got early warnings but proved unable to avoid the problems. Now the firms leading the project are phasing out the Louisiana factory for work on the biggest modules and contracting with new manufacturers.

While the Los Angeles Times covers another, surprising source of radioactive waste, fracking:

Oil drilling in North Dakota raises concerns about radioactive waste

Every weekday, about a dozen large garbage trucks peel away from the oil boom that has spread through western North Dakota to bump along a gravel road to the McKenzie County landfill.

Nearly 1,000 radioactive filters were found last year at the landfill, part of a growing tide of often toxic waste produced by the state’s oil and gas rush. Oil field waste includes drill cuttings — rock and earth that come up a well bore — along with drilling fluids and wastewater laced with chemicals used in fracking.

To many local and tribal officials, environmentalists and some industry managers in North Dakota, the dumping of the socks and the proliferation of other waste shows the government falling short in safeguarding the environment against oil field pollution.

And for our final item, the New York Times reminds us who’s footing the bill:

The Typical Household, Now Worth a Third Less

Economic inequality in the United States has been receiving a lot of attention. But it’s not merely an issue of the rich getting richer. The typical American household has been getting poorer, too.

The inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, or a 36 percent decline, according to a study financed by the Russell Sage Foundation. Those are the figures for a household at the median point in the wealth distribution — the level at which there are an equal number of households whose worth is higher and lower. But during the same period, the net worth of wealthy households increased substantially.

The Russell Sage study also examined net worth at the 95th percentile. (For households at that level, 94 percent of the population had less wealth and 4 percent had more.) It found that for this well-do-do slice of the population, household net worth increased 14 percent over the same 10 years. Other research, by economists like Edward Wolff at New York University, has shown even greater gains in wealth for the richest 1 percent of households.

Tom Toles: In the Hole from Student Debt


From the Washington Post editorial cartoonist:

Toles

Headlines: Elections, ejections, pols, pollution


We charge straight into today’s collections of headlines about politics, economics, and the environment — plus the latest episode of Fukushimapocalypse Now! — starting ewith a pathetic news from the Guardian

IMF chief says banks haven’t changed since financial crisis

  • Christine Lagarde tells London conference banking sector is still resisting reform and taking excessive risks

Christine Lagarde told an audience in London that six years on from the deep financial crisis that engulfed the global economy, banks were resisting reform and still too focused on excessive risk taking to secure their bonuses at the expense of public trust.

She said: “The behaviour of the financial sector has not changed fundamentally in a number of dimensions since the crisis. While some changes in behaviour are taking place, these are not deep or broad enough. The industry still prizes short-term profit over long-term prudence, today’s bonus over tomorrow’s relationship.

“Some prominent firms have even been mired in scandals that violate the most basic ethical norms – Libor and foreign exchange rigging, money laundering, illegal foreclosure.”

One indication of why things haven’t changed via Bloomberg News:

Ex-UBS Banker Lack Avoids Prison for 17-Year Tax Scheme

Martin Lack, the fourth ex-UBS AG (UBSN) banker to plead guilty to aiding wealthy Americans in evading taxes, avoided prison for a 17-year scheme in which he helped U.S. clients maintain secret overseas accounts.

Lack, a Swiss resident and citizen and an independent investment adviser, was sentenced to five years of probation and fined $7,500 today in federal court in Fort Lauderdale, Florida, where he was indicted in 2011. He surrendered to U.S. authorities on Oct. 14 and pleaded guilty on Feb. 26, when the judge said he was cooperating with prosecutors.

“I apologize for my conduct,” Lack told U.S. District Judge William Dimitrouleas. “I was given an opportunity to make amends for what I’ve done, which I did to the best of my ability.”

Via the Contributor Network, reality catches up:

Without the Industry-Promised ‘Ocean of Black Gold,’ CA Senate Committee Approves Fracking Moratorium

In spite of the millions spent by Big Oil on lobbying in Sacramento every year, the California Senate Appropriations Committee voted 4 to 2 to approve a bill, SB 1132, to place a moratorium on fracking (hydraulic fracturing) in the state.

SB 1132, authored by Senators Holly Mitchell and Mark Leno, now moves to a vote on the Senate floor. Senators Gaines and Walters voted against the bill while Senators De León, Padilla, Hill and Steinberg voted to advance the bill to the floor.

The bill moved forward the same week that the U.S. Energy Information Administration (EIA) reduced its previous estimate of recoverable oil in California by 96 percent.

From the Associated Press, greed, baby, greed:

Top U.S. executives mark compensation milestone; median pay hits $10-million

Propelled by a soaring stock market, the median pay package for a CEO rose above eight figures for the first time last year. The head of a typical large public company earned a record $10.5-million, an increase of 8.8 per cent from $9.6-million in 2012, according to an Associated Press/Equilar pay study.

Last year was the fourth straight that CEO compensation rose following a decline during the Great Recession. The median CEO pay package climbed more than 50 per cent over that stretch. A chief executive now makes about 257 times the average worker’s salary, up sharply from 181 times in 2009.

The best paid CEO last year led an oilfield-services company. The highest paid female CEO was Carol Meyrowitz of discount retail giant TJX, owner of TJ Maxx and Marshall’s. And the head of Monster Beverage got a monster of a raise.

From the Los Angeles Times, no pot luck:

Health insurers just say no to marijuana coverage

Patients who use medical marijuana for pain and other chronic symptoms can take an unwanted hit: Insurers don’t cover the treatment, which costs as much as $1,000 a month.

Marijuana in recent years has gained increased mainstream acceptance for its ability to boost appetite, dull pain and reduce seizures in people with a wide range of disorders and diseases, including epilepsy and cancer.

Still, insurers are reluctant to cover it, in part because of conflicting laws. Although 21 U.S. states have approved it for medical use, the drug still is outlawed by the federal government and most states.

From BBC News, a bubble on the verge of deflation?:

US house price growth slows as demand weakens

US housing price growth slowed to just 0.2% in the first three months of 2014, latest figures show.

According to the S&P/Case-Shiller index, the slowdown in growth compared with the previous quarter was partly caused by tighter bank lending regulations. Further compounding the problem is rising student loan debt, which has discouraged first-time buyers.

Nationally, US home prices are still up 10.3%, compared with a year earlier.

And from the Associated Press, unquenchable thirst, no strings attached:

California’s flawed water system can’t track usage

Nearly 4,000 California companies, farms and others are allowed to use free water with little oversight when the state is so bone dry that deliveries to nearly everyone else have been severely slashed.

Their special status dates back to claims made more than a century ago when water was plentiful. But in the third year of a drought that has ravaged California, these “senior rights holders” dominated by corporations and agricultural concerns are not obliged to conserve water.

Nobody knows how much water they actually use, though it amounts to trillions of gallons each year, according to a review of their own reports by The Associated Press. Together, they hold more than half the rights to rivers and streams in California.

And from MintPress News, why are we not surprised?:

U.S. Investors, Government Policies Leading Global Land-Grabs

Massive land-grabs are driving commercial agriculture and investment around the world, often at the expense of the world’s small-scale farmers – who feed 80 percent of the developing world

The U.S. public and private sectors are among the leading drivers of a global drive to snap up usable – and often in-use – agricultural land, in what critics say remains a steadily increasing epidemic of “land-grabbing.”

Africa and Southeast Asia are together seeing some three-quarters of problematic large-scale land acquisitions, according to new research from the global development group ActionAid. Africa remains a particular focus of this investment drive, constituting six of the top 10 countries experiencing significant land-grabbing. The continent has seen at least 40 million hectares switch hands in recent years as part of large-scale sales or leases.

However, land speculation is currently affecting almost all continents. The report warns of particularly negative effects for the estimated 2.5 billion people worldwide that rely on small-scale agriculture to meet their families’ needs. And this impact is felt far more broadly, as those smallholders, a majority of whom are women, provide the food that feeds some four-fifths of the developing world, according to the United Nations.

North of the border with CBC News and those minimum wage blues:

Restaurant owners seek meeting with PM over foreign worker freeze

  • Restaurant industry asks for urgent meeting with PM over freeze on hiring temporary foreign workers

The group representing Canada’s restaurant owners wants an urgent meeting with Prime Minister Stephen Harper to discuss the freeze on temporary foreign workers in the restaurant industry.

Restaurants Canada, which represents restaurants, pubs and caterers, says the program freeze ordered by federal Employment Minister Jason Kenney is already affecting the industry.

Restaurants Canada says it will make a call for urgent action on what it calls a labour crisis due to the moratorium on temporary foreign workers.

On to Europe, and those electoral post mortems, first with a French accent from BBC News:

EU election: France’s Hollande calls for reform of ‘remote’ EU

French President Francois Hollande has said the EU must reform and scale back its power, amid a surge in support for Eurosceptic and far-right parties.

Mr Hollande, whose party was beaten by the far right in last week’s European Parliament election, said the EU had become too complex and remote.

In response, he will tell EU leaders at a meeting in Brussels later that they must focus on boosting the economy.

The Associated Press confers

EU summit seeks way out of election quagmire

Despite their clashing visions for Europe, Britain and France agreed Tuesday that the massive increase in protest votes during the European Union election is a watershed moment that must lead to profound change in how Europe governs itself.

Coming into an EU summit meeting, British Prime Minister David Cameron said the anti-EU vote had shown that Brussels had become “too big, too bossy, too interfering,” and needed to return many powers to its 28 member nations as soon as possible.

The EU leaders met to assess the rise of the far-right, Euroskeptic and anti-establishment parties that took almost 30 percent of the seats in the European Parliament in national elections that ended Sunday. The summit had the major challenge of figuring out how to deal with the grassroots revolt of people turning away from the parties that built the EU.

ANA-MPA agonizes:

Eurogroup head Dijsselbloem says a great deal ‘still needs to be done’

Trying to tell everyday people about economic achievements at state budget level is difficult, Eurogroup President Jeroen Dijsselbloem told a conference on Europe at Berlin’s Hertie School of Governance on Tuesday.

“Try to tell a Greek who is struggling to survive that Greece now has a primary surplus, something that for us at the Eurogroup constitutes a significant indicator. What does this say, however, to a citizen in Greece?,” Dijsselbloem said, adding that after the latest Euroelections “Europe is no longer something that is beyond doubt.”

He went on to add, “Try to tell a Spaniard who has lost his job that there is a small drop in unemployment in his country, or to an Irish whose house lost a quarter of its value that real estate prices have registered a slight increase.”

And the Amsterdam angle from DutchNews.nl:

EU should focus on added value, and choose new president, says Rutte

‘The voter wants fewer regulations and more work,’ is the conclusion of prime minister Mark Rutte following the success of fringe parties across Europe in the EU elections last week.

Rutte was speaking after a parliamentary debate on the meeting of European heads of state on Tuesday evening in Brussels, the Telegraaf reports.

‘The message to politicians in the Netherlands and elsewhere in Europe is that the EU should be involved in fewer matters,’ he said. ‘It should focus on where it can add value, for instance in creating jobs.’

And from Spiegel, a prescription:

German Finance Minister Schäuble: ‘Europe Needs More Self-Confidence’

What does Eurovision Song Contest winner Conchita Wurst have to do with the Ukraine conflict? More than you might think, explains German Finance Minister Wolfgang Schäuble in a SPIEGEL interview. It demonstrates the EU’s greatest strengths.

On to Britain with the London Telegraph and a regal prescription:

Prince Charles: reform capitalism to save the planet

  • A “fundamental transformation of global capitalism” is needed in order to tackle climate change, the Prince of Wales has said

Prince Charles has called for an end to capitalism as we know it in order to save the planet from global warming.

In a speech to business leaders in London, the Prince said that a “fundamental transformation of global capitalism” was necessary in order to halt “dangerously accelerating climate change” that would “bring us to our own destruction”.

He called for companies to focus on “approaches that achieve lasting and meaningful returns” by protecting the environment, improving their employment practices and helping the vulnerable to develop a new “inclusive capitalism”.

From the London Telegraph again, a Goldman Sachs alum covers for his pals:

Jailing bankers will not fix bad behaviour, says Mark Carney

  • Mark Carney, Governor of the Bank of England, says fundamental flaws in the industry can only be resolved by changing how markets operate

Jailing bankers for market manipulation or clawing back pay and bonuses will not be enough to curb future misbehaviour or restore public trust in the financial system, the Governor of the Bank of England has said.

Despite a new crackdown on reckless bankers, Mark Carney said fundamental flaws in the industry could only be resolved by changing how markets operate.

“Merely prosecuting the guilty to the full extent of the law will not be sufficient to address the issues raised,” Mr Carney said in a speech in London on Tuesday night.

And the not-so-surprising from the Guardian [although homophobia is down]:

Racism on the rise in Britain

The proportion of Britons who admit to being racially prejudiced has risen since the start of the millennium, raising concerns that growing hostility to immigrants and widespread Islamophobia are setting community relations back 20 years.

New data from NatCen’s authoritative British Social Attitudes (BSA) survey, obtained by the Guardian, shows that after years of increasing tolerance, the percentage of people who describe themselves as prejudiced against those of other races has risen overall since 2001.

In an echo of the voting patterns of Ukip supporters in last week’s European elections, the figures paint a pattern of a nation geographically divided – with London reporting the lowest levels of racial prejudice. Older men in economically deprived areas are most likely to admit to racial prejudice.

Sweden next, and from TheLocal.se, the first hint of austerity to come:

Sweden’s labour costs ‘distressingly high’

Labour costs in Sweden are 22 percent higher than the eurozone average, a difference which threatens Swedish industries’ ability to compete, economists warned in a report on Tuesday.

Labour costs have been escalating in Sweden at a quicker pace than they have in the rest of western Europe and the eurozone, and the increasing strength of the krona has compounded the problem, a report by employer group Teknikföretagen stated on Tuesday.

“Swedish industries operate in a global market characterized by tough international competition,” Teknikföretagen economist Anders Rune wrote in the report.

Germany next, first with a power-up from the Japan Times:

Growing number of Germans opting for ‘homemade’ electricity

Of the about 600 terawatt hours Germany consumes each year, 50 twh are self-produced — about 8 percent of the total — in a trend that has seen solar panels installed on home roofs and gas plants set up in factories.

In industry, the share is around 20 percent, according to business and energy consumers’ groups. Their main goal: cost savings.

Homemade power in Germany is not taxed, unlike conventional electricity where one-third of the customer’s bill goes into the public coffers. Germany has among Europe’s highest electricity bills.

TheLocal.de gives a glimpse at life at the bottom:

One in five Germans can’t afford a holiday

More than 20 percent of Germans can’t afford a week’s holiday, and 30 percent said they were unable to cover “unexpected expenses” such as house repairs or big purchases, according to a study released on Tuesday.

The survey, from federal statistics office Destatis which gathered the data in 2012, asked participants whether they could afford to pay for a week away from home each year, and if they felt they could handle unexpected costs – essential purchases costing €940 or more.

It also found around eight percent of respondents felt they could not afford to eat a meal including meat, poultry or fish at least once every two days.

From TheLocal.de, outsider entrepreneurs:

Foreigners set up 40pc of new German firms

Germany is increasingly relying on foreigners to stir entrepreneurial spirit in the country, as the number of new companies being founded by Germans falls.

The number of foreign entrepreneurs setting up new companies in Germany has risen from 90,000 in 2005 to 145,000 last year, despite an overall fall in the number of people setting up on their own.

A study released on Monday by a think-tank for medium-sized business, Institute für Mittelstandsforschung (IfM), showed three-quarters of new foreign-founded companies were in the construction (45 percent), trade (18.2 percent) and hospitality (10.2 percent).

On to Amsterdam, and a real pisser from DutchNews.nl:

Waste water analysis reveals Dutch drug secrets in EU survey

People in Amsterdam, Utrecht and Eindhoven are major users of drugs when compared to other European cities, according to a new analysis of waste water by the EU’s drugs agency Emcdda.

The agency analysed waste water in 42 cities in 21 countries looking for drug residues. The three Dutch cities occupied first, second and third place in terms of the use of party drug ecstasy and ‘abnormal amounts’ were identified in Eindhoven’s waste water, news agency ANP said.

This may be explained by the fact the production of ecstasy is concentrated in the region and that chemicals are dumped into the drains, the organisation said. The quantity of amphetamine found in Eindhoven water was also extremely high.

In terms of cannabis use, Amsterdam comes in second place, behind Novia Sad in Serbia. Eindhoven is seventh and Utrecht 13th.

Brussels next, and a quandary from EUobserver:

Belgian king gives coalition-forming mandate to Flemish republican

  • Will the man who wants the end of Belgium be the next Belgian prime minister? In a land where absurdity is a form of art, it’s not impossible.

King Philippe on Tuesday (27 May) asked N-VA chairman Bart De Wever to “inform” him about possible coalition governments, a first step to forming such a government.

On Sunday Belgians not only voted for the EU Parliament, but also for the national and regional parliaments. Belgium is a highly decentralised country, with powerful regional governments. On the Flemish (northern) side, there’s a strong demand to make those regions even stronger.

The hardliners simply want to split Belgium, although nobody knows how to do that with the bilingual – and very rich and important – Brussels right in the middle of the country.

The winner of the elections is the devolution-minded N-VA. Until a few years ago, it was a small party of hardline Flemish separatists. Thanks to the immense popularity of party leader Bart De Wever, the party took about 32 percent of the votes in Flanders at the weekend. This makes it by far the biggest party in Belgium.

Austria next, with post-electoral blues from TheLocal.at:

SPÖ row after attack on chancellor

A row has broken out among Austria’s Social Democrats (SPÖ) after the party failed to emerge as the winner among Austrian parties in Sunday’s European Parliament elections.

A member of Burgenland’s regional government, Peter Rezar, has launched an attack on Chancellor Werner Faymann – and provoked a storm of protest from the SPÖ’s top politicians.

The conservative People’s Party (ÖVP) won Sunday’s vote with 27 percent, ahead of its ruling partners the SPÖ at 24 percent.

On to France, with aspirations from Spiegel:

A Real National Front: The French Far Right Aims High

  • After its triumph in European elections on Sunday, the French far-right Front National is hoping to increase its power back home, with Marine Le Pen aiming for the presidency in 2017. With François Hollande’s popularity plummeting, it is not out of the question.

After pulling in a triumphant 25 percent of the vote, the Front National will now have the largest number of seats of any French political party in the European Parliament. Marine Le Pen has every intention of using the party’s presence at parliament’s headquarters in Strasbourg and Brussels for political gain. Some within the far-right in France are already considering their political futures — all the way up to the presidential palace in Paris.

The first step in the “long march,” as Marine Le Pen has termed it, is the creation of a party group in the European Parliament comprised of skeptics of the euro common currency, EU opponents and the far-right or right-wing populists. Doing so would provide the parties with greater access to money and key posts and would also raise their profile. To create a group, at least 25 members of parliament from seven different EU member states must join together in a bloc. Given the divergent ideologies on Europe’s right wing, that won’t be an easy task.

The only true support Le Pen can count on is from the Austrian right-wing Freedom Party. Right-wing populist parties in Belgium and the Netherlands failed to deliver on Sunday, managing only disappointing results. Meanwhile, radical political forces in Denmark and Britain have said they will not join an alliance with the Front National.

Partnering up with the Guardian:

Marine Le Pen to meet other far-right leaders in move to create EU bloc

  • Front National leader rules out joining forces with extreme-right parties Golden Dawn, Jobbik and Ataka

France’s Front National leader Marine Le Pen will meet other far-right and eurosceptic leaders on Wednesday in an attempt to create a powerful bloc in the European parliament.

However, Le Pen ruled out joining forces with the extreme-right Golden Dawn in Greece, the Hungarian party Jobbik or Ataka in Bulgaria.

Having spent years trying to shake off the FN’s reputation as a refuge for Nazi sympathisers – her father, the party’s founder Jean-Marie Le Pen, once dismissed the Holocaust as a “detail” – Le Pen said she did not envisage meeting newly elected German MEP Udo Voigt of the neo-Nazi NPD.

And a branding problem from EUbusiness:

Germany’s Schaeuble terms France’s far-right FN ‘fascist’

Germany’s finance minister on Tuesday described France’s far-right National Front (FN), which came out on top in France’s weekend vote for a new European Parliament, as a “fascist” party.

Wolfgang Schaeuble told a forum on Europe that the outcome in Europe’s second biggest economy was a vote “not for a right-wing party but for a fascist party”.

The result is a reality check “for everyone in Europe, not only for our friends in France”, Schaeuble, a veteran and strongly pro-EU member of Chancellor Angela Merkel’s conservatives, added.

And while the far right has smooth sailing, not so for the traditonal right, as the London Telegraph reports:

Crisis for France’s Right as Sarkozy party head quits over funding scandal

  • Jean-François Copé, leaders of UMP party, to step down over allegations a company run by friends signed off €10 million of “false invoices” to bankroll Nicolas Sarkozy’s failed 2012 election bid

The head of France’s main conservative opposition party is to step down after a scandal over funding for Nicolas Sarkozy’s failed attempt to win the presidency in 2012.

Jean-François Copé, leader of the Union for a Popular Movement (UMP), agreed to leave his post by June 15. Mr Cope’s position was already weakened after the UMP was beaten into second place in Sunday’s European Parliament elections by the Front National (FN).

The revelations cast a shadow over Mr Sarkozy’s chances of mounting a comeback in 2017. He is said to be “furious” and to feel “betrayed”, but none the less is likely to face questions over claims that more than €10 million (£8.1 million) of “false invoices” for his 2012 re-election campaign were billed as party expenses.

Of to Spain and a papal slapdown from TheLocal.es:

Pope slams ‘inhumane’ jobless rate in Spain

Pope Francis on Tuesday criticized an “inhumane” system which causes a youth unemployment rate of “50 percent” in Spain and “60 percent” in Andalusia in the wake of recent European elections.

Speaking during a press conference on his return from a trip to Middle East, the pope admitted he hadn’t had time to follow the European elections.

He also owned up to not being fully up to speed on issues like populism and the confidence, or lack of confidence in the Euro. But Pope Francis said he did understand words like “unemployment”.

“We are living under a world economic system that has money at its centre, and not human beings. This system, to maintain itself excludes (people),” the Pope was quoted as saying by Italy’s La Stampa.

But the IMF wants more Spanish misery, with higher taxes for the pooir and lower corporate taxes. From El País:

IMF calls on Spain to raise VAT and lower corporate taxes

  • Other measures recommended by local mission include tax pardons for struggling companies

Higher consumer taxes, lower corporate rates and few changes to income tax. Those were the proposals for the Spanish economy presented by the International Monetary Fund in Madrid on Tuesday, in the latest report issued by its mission in the country.

“There is room for increasing indirect revenues,” the report reads. “Raising excise duties and environmental levies, and gradually reducing preferential treatments in the VAT, would bring Spain’s collection effort more in to line with its European peers. This should be combined with clearly identified measures to protect the most vulnerable.

“There is scope for gradually cutting corporate income tax rates to promote growth (though not to 20 percent, which is below the EU average),” the report continues. “However, given the imperative to sustain revenues and preserve progressivity, there is less scope for significantly cutting top personal income tax rates.”

An electoral outside from the Spanish prede cessor of the Occupy movement wins election, via TheLocal.es:

‘Hippy’ politician stuns Spain’s political elite

Some see him as a ponytailed Fidel Castro, others think he’s the only honest politician Spain has had in decades. Either way, Pablo Iglesias is on everyone’s lips after he helped his poorly-funded, three-month-old party reach fourth place in the European Elections.

Rest assured, you’re not alone. Had Iglesias’ party Podemos (We Can) not won five seats in Brussels he may have remained a household name only in Spain. But their 1.2 million votes on Sunday have made the news across Europe and further afield, with Iglesias at the centre of all the intrigue.

How did they manage to do so well?

Perhaps the most crucial factor is the massive drop in support for Spain’s ruling conservative Popular Party (PP) and their socialist opponents PSOE. Both have been embroiled in corruption scandals and, when handed the reins of power by the country’s disillusioned population, they’ve seemed equally unable to solve the grave issue of unemployment and poor economic performance.

The other significant cause is Pablo Iglesias himself and how he has come to represent the educated but disgruntled youth who took part in Spain’s Real Democracy Now protest, popularly known as the 15-M, which gained worldwide coverage when thousands of young people camped out in Madrid’s iconic Puerta del Sol for months in 2011.

More from El País:

Podemos: A party under construction

  • The surprise success story at Sunday’s elections has its roots in the 15-M protest movement
  • With an undefined structure, the group must now get organized to hold its eurodeputies accountable

For now at least, the party has no leadership bodies and no membership cards. Yet it will have five seats in the European Parliament after receiving 1.2 million votes at Sunday’s poll.

As of Monday, Podemos is facing the new challenge of organizing itself and creating a leadership that will make day-to-day decisions and hold its five eurodeputies accountable. This is especially important because if Sunday’s results are repeated in Spanish general elections in 2015, Podemos could hold the key to local and regional governments. And it will have to make decisions.

“We were practically born on the campaign trail. To this day, we are a campaign team rather than a party proper. Now we need to begin a constitutional process,” says Íñigo Errejón, 30, who has a PhD in political science from Madrid’s Complutense University and acts as campaign director for Podemos.

And TheLocal.es evicts:

Protesters clash with police over squat eviction

Police clashed with protesters who burned bins and vehicles in Barcelona on Monday as anger boiled over at the eviction of activists from a well-known squat.

Officers made several arrests as hooded youths smashed windows and hurled stones at police and journalists in the streets of the north-eastern city.

Police had earlier evicted occupants who had chained themselves down inside the “Can Vies”, a building owned by the local transport authority but occupied since 1997 by activists who have used it as a community centre.

Italy next, and advice for a sourpuss from TheLocal.it:

Spin doctor tells ex-comedian Grillo to smile

A strategist for Italy’s Eurosceptic Five Star Movement (M5S) has told the party’s leader, Beppe Grillo, that he needs to smile more after the organization was outstripped in the European Elections.

Gianroberto Casaleggio, the founder of the Milan-based Casaleggio and Associates and a driving force behind the party’s successes, told the former comedian that he needs to “tone down” his aggression during a post-mortem of the party’s election performance on Monday.

“You have to force yourself to smile; we must smile more,” the advisor was quoted in Corriere della Sera as saying.

After the jump, the latest from Greece [including stunning support for neo-Nazis by Greek police], more Ukrainian struggles, an election extension in an apathetic Egyptian contest, more Libyan turmoil, an Indian electoral reminder, the tightening Thai coup, mixed economic signals from China, toxins, fires, and other environmental agonies, and the latest chapter of Fukushimapocalypse Now!. . .
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Michael Hudson dissects the European vote


And he gets right to the heart of it in this Anon Waronczuk interview for The Real News Network.

The most dramatic results of the European parliamentary elections consisted of the repudiation of the the austerian policies imposed by the neoliberalist of Brussels and national governments — including those dominated by socialist-in-name only parties.

Votes for outsiders and massive refusal to vote were the chief characteristics of the election, says University of Missouri-Kansas City economist Michael Hudson [previously], who notes that Europeans have abandoned “socialist parties” because they have swap their nominal socialism for the austerian imperatives pushed by corporateers and banksters.

We doubt you’ll find a better analysis of the elections anywhere else.

From The Real News Network:

Voters Reject Traditional Left Parties In EU Parliament Elections

Note: There’s no transcript posted yet, but when there is, we’ll update with the link.