Category Archives: Economy

EconoEnviroWatch: Drought, fires, poisons


For today’s second headline collection, we offer news of the environment, as well as some relevant economic and political stories.

We begin with an alarm from Circle of Blue:

Colorado River’s Course Through A Drying Landscape Is Draining Lake Mead

  • Along the 1,800-mile river basin, locals wrestle with water demands.

The effects of lingering drought, and the unrelenting demand for water from farmers, cities, and energy producers converged today at Lake Mead, which drained to its lowest level since 1937 when the Hoover Dam closed off the Colorado River to begin filling the largest reservoir in the United States.

In dropping to a record-low water level the huge lake, which straddles the border between southern Nevada and northwestern Arizona, has emerged as an important measure of water insecurity in the American West. Just as gasoline prices serve as a national gauge of American economic stress — relieving psychic pressure as prices go down, causing strain as they rise — Lake Mead’s steadily declining water levels are a visible and widely reported gauge of intensifying water scarcity in the fastest growing region of the United States.

Lake Mead sits near the end of the Colorado River, which stretches 2,900 kilometers (1,800 miles) across seven U.S. states before entering Mexico. Its course is through one of the earth’s grandest landscapes. Lake Mead reflects the mammoth scale of the geography and its drying condition.

The California angle from Weather West:

An overview of California’s ongoing and extraordinary drought: a tale of exceptional dryness and record warmth

Droughts historically have a way of sneaking up on California, and the extraordinary 2012-2014 drought has been no exception.

Year-to-year and even season-to-season rainfall variability is quite high in this part of the world, which means that it’s nearly impossible to know whether a single dry year (or season) portends the beginning of a much more prolonged or intense dry period. Indeed–the 2012-2013 rainy season had an extremely wet start–so wet, in fact, that an additional large storm during December 2012 would likely have led to serious and widespread flooding throughout Northern California. But no additional significant storms did occur during December 2012–nor during January 2013…nor February, March, April, or May. In fact, January-June 2013 was the driest start to the calendar year  on record for the state of California in at least 118 years of record keeping. Some parts of the state saw virtually no precipitation at all during this period, which made for an especially stark contrast with the extremely wet conditions experienced just a few months earlier.

How did this drastic change occur so quickly? The second half of the 2012-2013 Water Year saw the development of the now infamous Ridiculously Resilient Ridge (or RRR)–an extraordinarily persistent region of high pressure over the northeastern Pacific Ocean in the middle atmosphere that forced the mid-latitude storm track well to the north of its typical position and prevented winter storms from reaching California.

And just how dry is the Golden State? Consider this from the United States Drought Monitor, showing that all of California is in a state of Severe Drought, and a phenomenal 36.49 percent is in the most extreme state of Exceptional Drought:

BLOG CalDrought

Next up, fracking the drought with Pacific Standard:

California’s Lax Policing of the Fracking Industry Has Put the Drought-Stricken State in a Terrible Situation

  • The state’s drought has forced farmers to rely on groundwater, even as aquifers have been intentionally polluted due to exemptions for the oil industry.

California officials have ordered an emergency shut-down of 11 oil and gas waste injection sites and a review of more than 100 others in the state’s drought-wracked Central Valley out of fear that companies may have been pumping fracking fluids and other toxic waste into drinking water aquifers there.

The state’s Division of Oil and Gas and Geothermal Resources on July 7 issued cease and desist orders to seven energy companies warning that they may be injecting their waste into aquifers that could be a source of drinking water, and stating that their waste disposal “poses danger to life, health, property, and natural resources.” The orders were first reported by the Bakersfield Californian, and the state has confirmed with ProPublica that its investigation is expanding to look at additional wells.

From South of the Border, the opposite course via Frontera NorteSur:

Mexican Fracking Foes Lose a Big Round

Mexican opponents of the controversial method of extracting natural gas known as fracking lost an important battle in the Mexican Senate late last week. As part of a 91-26 vote that approved secondary legislation implementing the Pena Nieto administration’s energy reform, most senators rejected a measure that would have prohibited fracking.

Prior to the July 18 vote, the Mexican Alliance against Fracking, a grouping of environmental organizations, presented senators with a petition signed by more than 10,000 people that supported a fracking ban.
Nonetheless, a majority of senators from President Pena Nieto’s PRI party joined with lawmakers from the PAN and PVEM (Mexican Green) parties to reject an outright prohibition of fracking. Voting in favor of a ban were members of the PRD and PT parties.

Senator Pablo Escudero, PVEM representative, maintained that environmental studies in the United States, as well as the history of fracking in Texas, Louisiana, New Mexico and other states, showed that fracking could be done in a safe manner. To back up his case, Escudero referred to studies by University of California physicist Dr. Richard Muller, whose pro-environment arguments in favor of fracking have engendered sharp polemics.

When drought meets austerity, via the Christian Science Monitor:

Western wildfires burn through firefighting budgets

The cost of fighting wildfires has eaten into agency budgets meant for forest management and fire preparedness. Proposed federal legislation would treat such fires as natural disasters like earthquakes and hurricanes.

As 26 major wildfires currently rage across the American West – 18 of them in Oregon and Washington – they’re rapidly burning through firefighting budgets as well.

As a result, experts warn, firefighting agencies such as the US Forest Service and the US Department of the Interior have to raid other fire-related programs – forest management and fire preparedness, for example – to battle the blazes.

The reasons for this are multiple and complicated: Years of fire suppression instead of letting fires burn naturally allowed fuel levels to grow dangerously; climate change has brought on changes in weather patterns; and housing and other development pushed into what’s known as the “wildland-urban interface” – some 60 percent of all new homes built since 1990, according to environmental economist Ray Rasker.

From EurActiv, the environment gets cowed:

Scientists find beef production harmful to the environment

Production of beef is nearly ten times more damaging to the environment than any other form of meat production, according to a new study published in the Proceedings of the National Academy of Sciences.

American scientists measured the environment inputs required for beef production and concluded that beef cattle need 28 times more land and 11 times more irrigation water than pork, poultry, eggs or dairy.

The researchers developed a uniform methodology that they were able to apply to all five livestock categories and to four measures of environmental performance.

On to Japan for the latest episode of Fukushimapocalypse Now!, first with the Japan Daily Press:

Testimony of Fukushima plant manager reveals safety inspectors were first to flee during disaster

Masao Yoshida – the former plant manager of the Fukushima nuclear power plant during the time when it was hit by the Great East Japan Earthquake and tsunami in March 2011 – died of cancer last year, but his recorded testimony revealed a flaw in the disaster management process that probably caused the chaos around the way Tokyo Electric Power Co. (TEPCO) dealt with the disaster at that time. According to Yoshida’s testimony, the safety inspectors were among the first to flee the site at the time of the disaster.

The safety inspectors were under the Nuclear Industrial Safety Agency (NISA), the predecessor of the Nuclear Regulation Authority (NRA), and they were supposed to remain on site to be able to give a factual and solid assessment of what needed to be done to deal with the accident and the multiple reactor meltdowns. As such, with the lack of safety inspectors onsite, the Japanese government was forced to rely on sometimes erroneous and mostly chaotic information from TEPCO.

Then-Prime Minister Naoto Kan had gone to TEPCO’s Tokyo office, ultimately leading to the decision that a base of communications for the disaster was set up by TEPCO and the Japanese government in Tokyo, 230 kilometers away from where the disaster was taking place. That in itself was a hindrance to the proper flow of information and the correct assessment of the disaster.

NHK WORLD runs the numbers:

One trillion Bq released by nuclear debris removal

The operator of the damaged Fukushima Daiichi nuclear plant says more than one trillion becquerels of radioactive substances were released as a result of debris removal work at one of the plant’s reactors.

Radioactive cesium was detected at levels exceeding the government limit in rice harvested last year in Minami Soma, some 20 kilometers from Fukushima Daiichi.

There are fears that some rice paddies in the city have been tainted by airborne radioactive material released when debris was removed from the plant’s No.3 reactor in August last year.

On Wednesday, Tokyo Electric Power Company presented the Nuclear Regulation Authority with an estimate that the removal work discharged 280 billion becquerels per hour of radioactive substances, or a total of 1.1 trillion becquerels.

Poisoning primates, via the Guardian:

Japanese monkeys’ abnormal blood linked to Fukushima disaster – study

  • Primates in Fukushima region found to have low white and red blood cell levels and radioactive caesium

Wild monkeys in the Fukushima region of Japan have blood abnormalities linked to the radioactive fall-out from the 2011 nuclear power plant disaster, according to a new scientific study that may help increase the understanding of radiation on human health.

The Japanese macaques (Macaca fuscata) were found to have low white and red blood cell levels and low haemoglobin, which the researchers say could make them more prone to infectious diseases.

But critics of the study say the link between the abnormal blood tests and the radiation exposure of the monkeys remains unproven and that the radiation doses may have been too small to cause the effect.

The scientists compared 61 monkeys living 70km (44 miles) from the the Fukushima Daiichi nuclear power plant with 31 monkeys from the Shimokita Penisula, over 400km (249 miles) from Fukushima. The Fukushima monkeys had low blood counts and radioactive caesium in their bodies, related to caesium levels in the soils where they lived. No caesium was detected in the Shimokita troop.

From the Japan Daily Press, pressing feet to the [nuclear] fire:

TEPCO shareholders seeking disclosure of nuclear accident interview records

It seems that three years after the nuclear disaster that crippled Tokyo Electric Power Co.’s Fukushima Daiichi plant, the operator’s problems are far from over. While the problem of decontamination is ongoing, albeit slowly, the next battle is set to come as shareholders in the firm are looking at filing lawsuits to determine the real cause of the incident.

The shareholders are planning to request from the Cabinet Secretariat copies of the interviews conducted, which many already assume would be denied. Such denial would force the shareholders to no other recourse but to file legal action against the government so it would release interview records of 772 people for their own analysis. Not only that, they also plan to file a separate legal action against TEPCO to see if executives and managers of the company played a hand in the disaster and the problems resulting from the meltdown.

Next up, more disastrous blowback at the disastrous intersection of Big Pharma, politics, and those who pay the real price. From Süddeutsche Zeitung:

Doctors Blame Factory Farming For Failing Antibiotics

Citing the failure of antibiotics to work effectively in their patients, a group of German doctors and other healthcare providers are laying blame on the factory farming industry — and calling for reform.

The doctors say that antibiotics no longer work because of multi-resistant germs that patients carry, at least some of which have their origins in the way animals are bred. Germs from agro-industrial facilities that are resistant to antibiotics are a massive threat to human health, the campaign founders say.

The first nationwide campaign of this type is so far being supported by 250 doctors, carers and pharmacists. They are demanding humane breeding of animals, sharper controls, and sanctions against those who put antibiotics in animal feed.

If action is not taken, antibiotics may soon be entirely ineffective as a weapon against bacterial infections in both humans and animals, warns professor of veterinary medicine Siegfried Ueberschär. Doctors now often try in vain to save the lives and health of patients with weak immune systems, and there are no new antibiotics in sight, says Bremen-based internist Imke Lührs.

And for our final item, a very import reminder of the profound consequences of cultural differences, not patentable by Big Pharma. From the London Daily Mail:

How schizophrenia is shaped by our culture: Americans hear voices as threatening while Indians and Africans claim they are helpful

  • Scientists came to the conclusion after speaking with 60 schizophrenics
  • 20 came from California, 20 from Accra, Ghana and 20 from Chennai, India
  • In America, voices were intrusion and a threat to patient’s private world
  • In India and Africa, the study subjects were not as troubled by the voices
  • The difference may be down to the fact that Europeans and Americans tend to see themselves as individuals motivated by a sense of self identity
  • Whereas outside the West, people imagine the mind and self as interwoven with others and defined through relationships

InSecurity Watch: Spooks, woes, and dirty deals


While we’re unsure what’s to become of our blog, we remain committed to pointing out developments likely to impinge on the future of folks, both those alive today and the yet-to-be-born.

Developments in the realm of technology and their potential to shred the last remaining vestiges of privacy in the interests of corporations and their symbiotes in the National Security State in an era of enforced globalization — and thus creating a new context for the human experience in which all our vulnerabilities become transparent to folks with a powerful interest in exploiting them in the interests of deep politics and corporate profiteering.

And with that preamble, on with the shoe, starting with deplorable military action in a perennial tinderbox. Via The Independent:

Israel-Gaza conflict: UN school shelled by Israeli tanks, leaving 15 dead and 200 wounded

  • Doctors and officials described the strike as a ‘massacre’ mostly impacting children

While the Israeli Defence Forces (IDF) had no immediate comment on the incident, news agency photographers reported seeing pools of blood on the ground in the courtyard of the school near the apparent impact mark of a shell.

Israeli Radio, without citing a source, said that most of those killed at the UN compound were children.

It comes after the UN’s humanitarian chief drew attention to the “major concern” of child fatalities in the conflict, which has seen one child killed every hour over the past three days.

On Tuesday, a spokesperson for the UN’s Office for the Coordination of Humanitarian Affairs (OCHA) said: “There is literally no safe place for civilians [in Gaza].”

From The Hill, the ornamental fruits of ornamental umbrage:

Senate NSA compromise likely to come next week

Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.) is close but not yet ready to unveil a negotiated measure to rein in government surveillance.

Despite reports that the bill could be revealed this week, people familiar with the discussions said Leahy will actually release the compromise legislation as early as Tuesday.

Leahy has been working with the administration on a compromise.

Earlier this week, an aide said conversations had turned a corner and they were “within inches” of an agreement. Leahy said Tuesday that he was “far more encouraged that we can finally come up with some legislation that will do two things.”

Whilst the Guardian adds critical context:

US warned: surveillance reform hinges on change to Reagan executive order

  • John Napier Tye, a former State Department official, says Americans’ data remains vulnerable until executive order that provides NSA with a path to collect data is reformed

John Napier Tye is not Edward Snowden. He says he has no surveillance documents to disclose to journalists. He takes a nuanced position on Snowden’s disclosures.

Yet the 38-year old former State Department official has raised a Snowden-like alarm that Americans’ communication data remains highly vulnerable to surreptitious collection by the National Security Agency – and will remain vulnerable despite the legislative fixes wending through Congress to redress the bulk domestic phone data collection Snowden revealed.

Like Snowden, Tye means to spark a debate on the proper boundaries of NSA authorities. His focus is on an obscure, Reagan-era executive order that serves as a foundational set of rules for the intelligence apparatus. The order, known as Executive Order 12333, renders the current surveillance debate hollow, he said, even as it shows signs of traction in the Senate.

Next up, a critical Washington ally grows increasingly pissed, via intelNews:

Up to 20 US spies inside German government: media reports

German counterintelligence has intensified its surveillance of “certain employees of the United States embassy” in Berlin, after internal reports suggested that “up to 20″ agents of the American government are operating inside the German federal bureaucracy.

Citing information “from American security circles”, German newspaper Bild am Sonntag said on Sunday that the agents are German citizens who are secretly employed by a variety of American civilian and military intelligence agencies in return for money.

The Berlin-based tabloid noted that at least a dozen such agents have infiltrated four departments of the German federal government, namely the Ministries of Defense, Finance, Interior, as well as the Ministry for Economic Cooperation and Development. The paper said that the latter has been targeted by the US Central Intelligence Agency because it is routinely employed by the BND, Germany’s main external intelligence organization, as a cover for clandestine activities.

From The Independent again, a response:

Germany begins spying on Britain and America for the first time since 1945

  • Government responds to a series of spy scandals which began last year with revelations that the NSA had bugged Chancellor Angela Merkel’s mobile phone

Chancellor Angela Merkel has ordered her counter-espionage services to begin surveillance of British and American intelligence gathering in Germany for the first time since 1945 in response to a series of US spy scandals which have badly soured relations between Berlin and Washington.

The Süddeutsche Zeitung and two-state funded German TV channels, WDR and NDR, quoted an unnamed Berlin government source who said Ms Merkel’s Chancellery and her interior and foreign ministries had agreed to launch counter-espionage measures against Britain and the US for the first time.

“Right now we need to send a strong signal,” the Süddeutsche Zeitung quoted the source as saying. The extraordinary measures are a direct response to a series of embarrassing US and British spying scandals in Germany which began last year with revelations that the US National Security Agency had bugged Ms Merkel’s mobile phone.

More from Spiegel:

Keeping Spies Out: Germany Ratchets Up Counterintelligence Measures

  • Officials in Berlin were long in denial that their closest allies were spying on Germany. Now, ministries are undertaking measures to improve security and counterintelligence. They’re anticipating frosty relations with the US for some time to come.

Last Wednesday, German Interior Minister Thomas de Maizière paid a visit to his colleague in the Foreign Ministry, Frank-Walter Steinmeier for a strictly confidential conversation about the currently tense relationship with the United States. Specifically, they planned to address the latest spying revelations and accusations. Before the meeting began, both ministers turned in their mobile phones. Foreign Minister Frank-Walter Steinmeier has a small side room he uses for this purpose; part of the Foreign Ministry is in the former Nazi Reichsbank and has very thick walls. The room is now used to store smartphones and tablet computers when sensitive discussions take place.

The precaution reflects the significant disquiet and anxiety in Berlin’s ministries and in the Chancellery as the summer holidays get underway. Slowly, ministry officials are starting to grapple with the true meaning of “360 degree” counterintelligence. It means defending yourself not just usual suspects like Russia or China. But also against Germany’s closest allies, particularly the United States.

A few days ago, Chancellor Merkel reportedly told US President Barack Obama in a telephone conversation that anger over the US spying activities in Berlin’s government quarter as well as the recruitment of an informant inside Germany’s Bundesnachrichtendienst (BND) foreign intelligence service has in no way subsided. Because Obama apparently expressed little understanding for the commotion in Germany, Merkel is now taking action.

From the McClatchy Washington Bureau, a Washington diplomatic blitzkrieg:

Top Obama aides fly to Berlin to talk about spying allegations

Two weeks after Germany demanded that the top U.S. intelligence official stationed in its country leave, President Barack Obama has dispatched two top aides to Berlin.

White House Chief of Staff Denis McDonough and Lisa Monaco, assistant to the president for counterterrorism and homeland security, met with their German counterparts in Berlin Tuesday “for intensive talks on the state of bilateral relations and future cooperation,” according to the White House.

The meeting came after German authorities said they were investigating new instances of spying, including one that targeted the parliamentary committee probing National Security Agency eavesdropping. Last year, reports indicated that the NSA was monitoring the communications of millions of Germans, including listening in on Merkel’s cellphone.

Meanwhile, from the Washington Post’s David Ignatius, meet that old Foggy Bottom familiar, Rosy Scenario:

Germany, U.S. rebuild a spy partnership

Given recent German indignation about the National Security Agency, it has been easy to overlook the fact that for decades the German government has cooperated extensively with the NSA on surveillance activities. But after a high-level meeting in Berlin this week, this long-standing but veiled cooperation may have a firmer legal and political base.

The two countries’ past partnership became so extensive that they even developed a special logo for their joint signals—intelligence activity, known by its initials, “JSA.” It shows an American bald eagle against the colors of the German flag, next to the words Der Zeitgeist, or “the spirit of the age.”

Like so much else we know about the NSA, the details about its activities in Germany come from Edward Snowden, the former NSA contractor now living in Moscow. He provided a trove of secret documents to Der Spiegel, which published more than 50 online last month.

German anger about American spying boiled over recently with the expulsion of the CIA station chief in Berlin. The Germans were furious when they discovered that the CIA was paying a “walk-in” German agent, adding to their anger that the NSA had tapped Chancellor Angela Merkel’s cellphone.

From the New York Times, more fallout from the Dark Side:

European Court Censures Poland Over C.I.A. Rendition Program

The European Court of Human Rights ruled Thursday that Poland had violated the rights of two terrorism suspects by allowing their transfer to a secret detention center run by the C.I.A. in Poland, where the two men were tortured.

The ruling says Poland failed to prevent the two men — Abu Zubaydah, born in Saudi Arabia, and Abd al-Rahim al-Nashiri, a Saudi citizen — from being subjected to “torture and inhuman or degrading treatment” after they were brought to a clandestine prison in northeast Poland. It ordered Poland to pay 100,000 euros, about $135,000, to Mr. Nashiri and $175,000 to Abu Zubaydah. Both are being held at the American detention center in Guantánamo Bay, Cuba.

Abu Zubaydah is believed to have overseen the operation of guesthouses in Pakistan where terrorism recruits arrived; he vetted them and provided letters of recommendation allowing them to be accepted for training at a paramilitary camp in Afghanistan, a former Guantánamo detainee said in a military court filing, for example. Mr. Nashiri is accused of plotting the 2000 bombing of the American destroyer Cole.

While The Intercept covers the Kafkaesque:

The Secret Government Rulebook For Labeling You a Terrorist

The Obama administration has quietly approved a substantial expansion of the terrorist watchlist system, authorizing a secret process that requires neither “concrete facts” nor “irrefutable evidence” to designate an American or foreigner as a terrorist, according to a key government document obtained by The Intercept.

The “March 2013 Watchlisting Guidance,” a 166-page document issued last year by the National Counterterrorism Center, spells out the government’s secret rules for putting individuals on its main terrorist database, as well as the no fly list and the selectee list, which triggers enhanced screening at airports and border crossings. The new guidelines allow individuals to be designated as representatives of terror organizations without any evidence they are actually connected to such organizations, and it gives a single White House official the unilateral authority to place entire “categories” of people the government is tracking onto the no fly and selectee lists. It broadens the authority of government officials to “nominate” people to the watchlists based on what is vaguely described as “fragmentary information.” It also allows for dead people to be watchlisted.

Over the years, the Obama and Bush Administrations have fiercely resisted disclosing the criteria for placing names on the databases—though the guidelines are officially labeled as unclassified. In May, Attorney General Eric Holder even invoked the state secrets privilege to prevent watchlisting guidelines from being disclosed in litigation launched by an American who was on the no fly list. In an affidavit, Holder called them a “clear roadmap” to the government’s terrorist-tracking apparatus, adding: “The Watchlisting Guidance, although unclassified, contains national security information that, if disclosed … could cause significant harm to national security.”

From Newser, the War on Photography continues, this time with violence [as well as another touch of Kafka]:

Border Official Points Gun… at Boy Scout: Troop Leader

  • Another scout gets threatened with 10 years in prison

A couple weeks ago, a US border patrol official held a gun to the head of … a Boy Scout. A troop leader explains what happened now that the scouts and adult volunteers from Mid-Iowa Scout Troop 111 have returned from their 23-day trip: Ten days into the trip, their four vans attempted to cross from Canada into Alaska. One scout made an innocent error: He snapped a photo of a US border official. Troop Leader Jim Fox tells KCCI that officials detained everyone in that van and searched them and their luggage, and one agent confiscated the boy’s camera, telling him “he would be arrested, fined possibly $10,000 and 10 years in prison.” But it didn’t end there.

When another scout removed some luggage to comply with the search, Fox says the boy heard “a snap of a holster, and here’s this agent, both hands on a loaded pistol, pointing at the young man’s head.” No one was ultimately hurt or arrested—just scared—and after a four-hour ordeal, the group was allowed to enter Alaska. A Boy Scout official says the scouts learned an important lesson about being a “good citizen” and following rules. But as for that cited rule against photographing federal agents? It’s not exactly true. According to Reason.com, the American Civil Liberties Union says that photographing “things that are plainly visible from public spaces,” including government officials, “is a constitutional right.”

From ZDNet, suspicions confirmed!:

Forensic scientist identifies suspicious ‘back doors’ running on every iOS device

Forensic scientist and author Jonathan Zdziarski has posted the slides from his talk at the Hackers On Planet Earth (HOPE/X) conference in New York called Identifying Backdoors, Attack Points, and Surveillance Mechanisms in iOS Devices.

The HOPE conference started in 1994 and bills itself as “one of the most creative and diverse hacker events in the world.”

Zdziarski, better known as the hacker “NerveGas” in the iPhone development community, worked as dev-team member on many of the early iOS jailbreaks and is the author of five iOS-related O’Reilly books including “Hacking and Securing iOS Applications.”

And from Military & Aerospace Electronics, there’s more than angels looking over our shoulders:

U.S. UAV spending to triple over next 5 years

The U.S. market for unmanned aerial vehicles (UAVs) will triple in size over the next five years, and should grow from $5 billion in 2013 to $15 billion in 2020, predict analysts at market researcher Information Gatekeepers Inc. (IGI) in Boston.

The IGI study entitled 2014 UAV Market Research Study takes a look at the total UAV market from large military UAVs to do-it-yourself (DIY) UAVs for amateurs, company officials say.

The study includes the following major market sectors including the U.S. Department of Defense (DOD), civil, commercial, small UAVs, amateur and hobby UAVs, and radio-controlled UAVs.

TechWeekEurope covers another private sector initiative:

European Central Bank Held To Ransom Over Stolen Data

  • Hackers steal partially encrypted records from an events website that belongs to the bank

Hackers have breached the public website of the European Central Bank (ECB) and made off with names, email addresses and other personal details of people who had registered for events there.

The attack came to light on Monday, after the organisation received an anonymous email which demanded an unspecified amount of money for the data.

The ECB said most of the stolen information was encrypted, and no sensitive market data has been compromised in the breach. It didn’t indicate whether it was going to pay the ransom.

The institution, which administers the monetary policy of the 18 members of the Eurozone who chose to adopt the single currency, was established by the Treaty of Amsterdam in 1998 and is one of the world’s most important central banks.

After the jump, the latest on the ever-escalation Sino-American trans-Pacific confrontation [including Latin American plays],  Britain goes all Orwell, why some Spanish cops have to pee in a bottle daily [and not for te reasons you might expect], and Rob Ford falls prey top a Sharknado. . . Continue reading

Uncle Sam wages legal war for banksters


Yep, forget national sovereignty or the willing assumption of risk by buyers of foreign debt; Washington wants poor countries to bail our speculators at the cost of their own citizens.

The latest proof comes in the form of a federal court ruling in New York, and economists Michael Hudson of the University of Missouri-Kansas City and James M. Henry of the Tax Justice Network discuss the implication with Paul Jay of The Real News Network:

From the transcript:

JAY: Right. Michael, it seems to me a little ironic or something. You know, you pay, you earn 10, 12, 15 percent. I mean, the reason you’re earning those kinds of money on government bonds is ’cause you’re acknowledging risk. If there’s no, ever, a risk of default, then why should you be paying? You could /ˈpeɪbi/ inflation, but not any more. So, I mean, the judge is saying there should be bonds that can pay high rates of interest, but there should be no risk.

HUDSON: That’s–there should not be any suffering as a result of risk. In other words, anybody can buy a discounted bond, and you have Third World countries always paying a premium over what the United States government has to pay, just like you have companies paying high for junk bonds. Essentially, Argentina was like a junk-bond country.

The history that was just said is very important. You had the U.S.-backed military dictatorship that ran the debt up into 1983, but then, in 1989, you had another neoliberal takeover with the Washington Consensus, and they adopted the U.S. dollar as their basic monetary reserves and tied their money supply to the dollar. That essentially drove the country into debt because it brought on an economic collapse by 2002. That’s why the government was voted out and why the Kirchners came in. So you have a destructive neoliberal government coming in, driving the country into debt, ’cause that’s what neoliberals do.

And then, 2002 (and it was just mentioned), the IMF said, look, we’re going to need something like the Bank for International Settlements was set out to do in 1929, to settle German reparations (obviously, Germany couldn’t pay the reparations that it had to). We have to have some international forum to decide how much a country can pay without imposing austerity and depression on its population, ’cause every country’s sovereign. That’s why they call it sovereign debt.

Well, the United States at that time, in 2002, blocked this and said, wait a minute, other countries want an international forum, but we’re going to block the IMF from doing that, because if they do that, they’ll write down the debt, and most of the bondholders are Wall Street, and we want to get every penny these guys want, and we don’t want.

Well, ironically, after Judge Griesa’s ruling threatened to throw the whole international bond issue into anarchy, the U.S. Treasury and the government and the French government and the IMF all filed amicus brief cases with the Supreme Court, saying, if you follow Judge Griesa’s ruling, it’s so wrong it treats Argentina as if it’s a family restaurant that’s just gone broke, and now let’s carve up all the little pieces and pay off. If you treat countries like you’d treat a family restaurant, then no country is going to ever again say, we’re going to agree, if there is a dispute, to settle the rules under the laws of New York, because if you settle the laws under New York bankruptcy, you’re going to have a nutcase like Judge Griesa saying, I don’t like Argentina, Argentina doesn’t pay its debts, I’m going to make it pay all the 100 percent money it owes as if there were no risk, and all of the interest, the 15 percent, you said, compounded year after year, and all of the legal fees that–the hedge fund has gone after 900 attempts to grab Argentine property, including their Naval training vessel, ARA Libertad, and now it’s trying to grab the shale oil in Argentina, and I’m going to give you penalties because I don’t like Argentina. So when the judge says, Argentina, send up your people to negotiate on my terms or I’ll find you in contempt of court, Argentina says, no country could possibly negotiate on your terms. We overthrew the military dictatorship. You are not going to do to us what the military dictatorship did, Judge Griesa.

Chart of the day: Call them the briCs?


With the big C because. well, this chart from Reuters says it all:

BLOG BRUCS

Video reports: As seen from overseas


First up, from China’s CCTV America, a report on America’s record rate of people needed helping putting food on the table:

U.S. is at [Greater] Risk of Hunger Than Ever Before

Next up, a report from RT America on weekend global protests targeting an American corporate giant:

Anti-Monsanto protests hit streets around the world

Program notes:

Protesters from 52 countries and 436 cities participated in Anti-Monsanto, Anti-Genetically Modified Foods rallies over the weekend. Activists rallied, marched and held speeches to demand for GM foods to be labeled or banned altogether. RT Correspondent Meghan Lopez was at the March Against Monsanto in Washington, D.C. over the weekend and brings us her report.

Finally, from Britain’s Channel 4 News, a move to exclude American authors from reading lists in the nation’s school system:

Michael Gove vs American literature

Program notes:

The Education Secretary Michael Gove had said he wanted to see more British authors studied. It’s meant Harper Lee’s ‘To Kill and Mockingbird’ and Arthur Miller’s ‘The Crucible’ are now excluded.

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!. . .
Continue reading

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.

Is The South China Sea On The Brink Of War?


A documentary from ABC Australia on the increasing tension in the oil-rich region of the Pacific where a host of nations are struggling to control potentially vast undersea petroleum and gas reserves — the struggle we’ve dubbed the Game of Zones.

Shot from a Philippine perspective and reported by Eric Campbell, the documentary gives the viewer an excellent first-hand view of the daily jockeying for possession consuming the politicians and military of a half-dozen Asian nations, hungry for the potential riches below.

Via Journeyman Pictures:

Is The South China Sea On The Brink Of War?

Program notes:

The Spratly Islands are an unremarkable scattering of reefs and sandbars in the South China Sea. But, rich in resources and claimed by six countries, could they be the trigger for the world’s next major conflict?

“We call our Kalayaan Island group the submerged Saudi Arabia of the Philippines.” Eugenio Bito-Onon is mayor of a seemingly innocuous islet municipality, home to just 150 residents.

But with the region crosshatched by important shipping lanes, the undersea bed replete with oil and gas, and the marine life furnishing vast fishing grounds, the surrounding waters are simmering with tension. China, the Philippines,

Vietnam, Malaysia, Taiwan and Brunei all lay claim to a portion of the territory, in a little-known diplomatic contest that for decades has regularly brought the area to the brink of war, and put it firmly off-limits to Western media.

“China is doing a lot of things besides bullying our fishermen and small navies,” explains the mayor as he points out a Chinese development on a small atoll known as ‘Mischief Reef’. Here, the only way to secure the land is to occupy it. So as competing claimants continue to build, could this high-stakes game of island Monopoly erupt into a fully fledged conflict?

Headlines: Beaucoup elections, and lots more


Whole lotta ground to cover, with elections — and their aftermaths — on three continents, plus the latest economic and ecological headlines and the latest edition of Fukushimapocalypse Now!

On with the show, starting with a trans-Pacific partnership of another sort from China Daily:

Children from China enroll in US summer academic camps

Summer is near, and that means that many Chinese parents will be sending their children to summer camps in the US for an academic performance boost.

Michelle Raz, the director of the Longfeifei Youth Summer Academy in Steamboat Springs, Colorado, said that Chinese parents are keen on “rounding out their kids’ experiences”, so they are enrolling them in programs like Longfeifei’s, which has an academic portion but also gives children time to learn about the arts and to participate in athletic activities.

“What the children have told me is that schools in China been very limited in sports and arts, where they are coming from,” Raz told China Daily. “Few of them have some experiences but the vast majority haven’t, so we’re teaching them American games and things like soccer.”

And more standardized testing from Washington, this time with ivy coverings, via the New York Times:

Colleges Rattled as Obama Seeks Rating System

The college presidents were appalled. Not only had President Obama called for a government rating system for their schools, but now one of his top education officials was actually suggesting it would be as easy as evaluating a kitchen appliance.

“It’s like rating a blender,” Jamienne Studley, a deputy under secretary at the Education Department, said to the college presidents after a meeting in the department’s Washington headquarters in November, according to several who were present. “This is not so hard to get your mind around.”

The rating system is in fact a radical new effort by the federal government to hold America’s 7,000 colleges and universities accountable by injecting the executive branch into the business of helping prospective students weigh collegiate pros and cons. For years that task has been dominated by private companies like Barron’s and U.S. News & World Report.

Next up, more neoliberalism north of the border with the Toronto Globe and Mail:

Ottawa approved thousands of foreign worker requests at minimum wage, data reveal

The federal government approved thousands of requests to bring in temporary foreign workers at minimum wage in recent years, a practice that undermines claims from government and employers that there are serious labour shortages and that all efforts have been taken to hire Canadians.

The revelations in newly released data come as the Conservative government is weighing major policy reforms – including a new “wage floor” – in response to criticism that employers are relying on the temporary foreign worker program as a way to avoid raising wages.

Using Access to Information legislation, the Alberta Federation of Labour obtained extensive statistics about the program and provided its findings to The Globe and Mail. The union sought and obtained information on the number of Labour Market Opinions approved by Employment and Social Development Canada that were for minimum wage jobs. An LMO is a screening process meant to ensure employers have exhausted efforts to hire Canadians before turning to the program.

On to Europe, first with a hint of things to come from the Portugal News:

‘Risk of deflation’ – ECB president

The president of the European Central Bank (ECB) said on Monday that inflation was going to stay low for a prolonged period of time and that “there is a risk” of deflation, adding there was “no question” the objective of the institution was to control price changes.

“At the moment, our expectation is that the low inflation is going to remain with us, but that it will gradually return to the 2% level. However, our responsibility is to be aware of any risks that might arise and be prepared to act is necessary”, Mario Draghi said.

The ECB president was giving a speech opening Monday’s works at the ‘ECB Forum on Central Banking’, organised by the ECB in Sintra and which began on Sunday and is to continue until Tuesday.

And our first electoral story, via EUbusiness:

Europe’s leaders urge EU reform after eurosceptic poll wins

France’s President Francois Hollande Monday called for reining in Brussels’ power after eurosceptic and far-right parties scored stunning success in EU polls, sending shock waves through the continent’s political landscape.

“Earthquake” in Europe, read the headlines after European parliamentary elections ended Sunday, summing up a day of trauma for establishment parties and the accepted consensus that the European Union offers the best future for all.

Hollande went on national television to call for the EU to reduce its role which he said had become for many citizens “remote and incomprehensible”.

More from United Press International:

European Parliament election results illustrate growing dismay with economic austerity measures

The European parliamentary election results are in. While pro-EU parties are expected to retain the majority of the 751 seats in the new legislature, so-called Euroskeptic parties who oppose the EU made significant gains.

According to European politics expert Simon Usherwood, who spoke to CNN about the election results, “They don’t have enough votes to stop legislation going through but what they will get particularly on the far right, is the time for speaking in debates, the chairmanship of certain committees, which means that they’re going to have much more of a platform on which they can sell their message to voters.”

And ominous new additions from EUbusiness:

European Parliament set to usher in first neo-Nazis

Though no stranger to controversy or diatribe, the European Parliament is set to usher in its first fully-fledged neo-Nazis members, from Germany and Greece.

With around 300,000 votes at Sunday’s European elections the neo-Nazi National Democratic Party of Germany (NPD) is expected to claim one of the country’s 96 seats in the new Parliament, in a historical ground-breaker.

A recent change in German electoral laws, scrapping all minimum thresholds, paved the way for the march into parliament of the NPD, which has 6,000 members. It describes itself as “national socialist,” just like Germany’s Nazis in the 1930s, and is openly xenophobic and anti-semitic so a group of German regional governments have tried to have it banned for propagating racism.

EurActiv looks on the bright side:

Europe on course for ‘grand coalition’ after election

Despite a rise in anti-European parties, political balances remained broadly unchanged in the European Parliament following the elections yesterday, with the centre-right and centre-left parties on track for a grand coalition.

The centre-right European People’s Party (EPP) won 212 seats in the European parliament, followed by the Socialists and Democrats (S&D), with 186 seats (out of 751). In the last European election, the EPP won 265 seats and the S&D 184. The Parliament was slightly larger at the time, counting a total of 766 seats.

This is the fourth consecutive victory for the EPP since the 1999 election and another disappointment for the Socialists, who failed to reverse the balance of power in Parliament, despite the popular resentment over austerity.

A different take from EUobserver:

New EP will struggle to find majorities

It will take days if not weeks for the political dust to settle after the EU vote but it is already clear that the new European Parliament will need to work harder to find majorities with discussions on issues such as migration and free trade deals set to become more polarised.

While the centre-right EPP gained the most seats in the EU vote, it lost around sixty seats compared to 2009, while the centre-left S&D came second, but did less well than expected. Together the two parties hold a majority (403) in the 751-strong EP, under current group projections, but it is a slim majority (54%).

“That means that in areas where only the S&D and the EPP agree, that will not be enough, they will have to get votes from some other places,” said VoteWatch’s Doru Frantescu at a post-election analysis on Monday (26 May).

On to Britain, and exuberance from an EU foe from Sky News:

Nigel Farage: ‘My Dream Has Become Reality’

  • UKIP’s leader likens the main parties to goldfish out of water “desperately gasping for air”, after his Euro election victory.

UKIP leader Nigel Farage has said his “dream” of “causing an earthquake in British politics” has come true.

Mr Farage was speaking at a press conference after UKIP’s first win in a national election – the first time in more than 100 years a party other than Labour or the Conservatives has finished top.

He described the “legacy parties” as “like goldfish that have just been tipped out of the bowl onto the floor, desperately gasping for air and clinging on to the comfort blanket that this is a protest vote”.

The Guardian hears from Boris the Bloviator, the neocon’s friend:

Boris Johnson: Eurosceptic success due to ‘peasants’ revolt’

  • London mayor says European election results are expression of revulsion and a signal for the EU to change or die

Boris Johnson has described Ukip voters as peasants in revolt after Eurosceptic parties swept to victory across the union.

The London mayor painted a scene of “pitchfork-wielding populists” converging on Brussels “drunk on local hooch and chanting nationalist slogans and preparing to give the federalist machinery a good old kicking with their authentically folkloric clogs”.

Writing in the Telegraph, he compared Eurosceptic parties, including Ukip, Dutch rightwing firebrands and Greek anti-capitalists, to people taking part in “a kind of peasants’ revolt” or a “jacquerie” – a bloody uprising against the French nobility in 1358.

From the Independent, a loser struggles:

European elections 2014: Nick Clegg faces fight for survival after Lib Dems’ Euro disaster

Local Liberal Democrat party activists begin calling emergency meetings to force leadership contest as triumphant Nigel Farage predicts Ukip will hold balance of power at next year’s general election

Nick Clegg failed to quell a grassroots revolt by Liberal Democrat activists on Monday night as they stepped up an attempt to oust him following the party’s disastrous performance in the European elections.

After the Deputy Prime Minister refused to fall on his sword, The Independent learnt that activists had begun to call emergency meetings of local parties across the country in order to force a leadership election. They require the backing of 75 parties to trigger a contest.

Ditto from Sky News:

EU Must Reform For Jobs And Growth – Cameron

  • The Prime Minister tells fellow EU leaders they must reform the 28-nation bloc in the wake of successes for eurosceptic parties.

David Cameron has called fellow European leaders and urged them to “seize the opportunity” for reform on jobs and growth following the European Elections.

In a series of phone calls the Prime Minister urged them to “heed the views expressed at the ballot box” over recent days.

His intervention came ahead of today’s Informal European Council dinner in Brussels, where leaders are expected to discuss the results of the European poll.

Meanwhile, the austerians can proclaim another kind of victory, via the Independent:

‘If the NHS were an airline planes would fall out of the sky all the time’ says Mid Staffs inquiry chairman

Standards across the NHS have become so poor that if the health service were an airline “planes would fall out of the sky all the time”, the chairman of the inquiry into the Mid Staffordshire NHS scandal has warned.

Robert Francis QC said the public had been given a falsely positive impression about the quality of care being provided in many of the country’s hospitals.

Mr Francis told The Telegraph: “If we ran our airlines industry on the same basis, planes would be falling out of the sky all the time. We’ve got to change the attitude that because it’s provided by the state, it’s all right for a number of people to be treated badly; well it’s not. Airlines would go out of business very quickly if they worked that way.”

Ireland next, and a win for the left from Bloomberg:

Sinn Fein Surges in Ireland as Voters Punish Austerity

Sinn Fein, the former political wing of the Irish Republican Army, became the biggest party in Dublin city as voters punished the ruling coalition for three years of austerity amid a rise in protest votes across Europe.

The party has more members of Dublin City Council than any other after municipal elections on Friday and topped the Irish capital’s poll for a European Parliament seat. Support for Sinn Fein and other anti-austerity groups swelled across Ireland as they grabbed seats from government parties.

“It’s a profound change in the political landscape,” Sinn Fein leader Gerry Adams said in an interview posted on the Irish Independent’s website, adding the party is at its strongest in almost a century. “The government will think it can dismiss this as a bit of a scolding by the electorate, but it’s bigger and deeper than that.”

One response from Independent.ie:

Eamon Gilmore resigns as leader of Labour Party

EAMON Gilmore has warned against the Labour pulling out of government following his dramatic decision to resign as party leader.

Mr Gilmore said he “agonised” over the decision to step down which was made just hours before eight members of the Labour Parliamentary party tabled a vote of no confidence.

A new Labour leader will be put in place on July 4 following a postal ballot of all party members.

On to Iceland, and an odd election issue from the Reykjavík Grapevine:

Mayoral Candidates Speak Out On Mosque Issue

In the wake of recent remarks from a mayoral candidate that she would revoke a plot of land the city of Reykjavík granted for building a mosque, numerous mayoral candidates have expressed their disagreement with this sentiment.

Vísir spoke with other candidates running for mayor, to get their reactions to recent remarks made by Progressive Party mayoral candidate Sveinbjörg Birna Sveinbjörnsdóttir, who said last week that if elected mayor, she would reverse a city council decision made in January 2013 to grant Iceland’s Muslim population a plot of land on which to build a mosque.

“This is a desperate way to get votes during the last days before elections,” said Social Democrat mayoral candidate Dagur B. Eggertsson. “You don’t run a city by discriminating against people based on their religious beliefs.”

Sweden next, and harumphing from TheLocal.se:

‘Nationalists threaten EU openness’: Malmström

Sweden has in total fewer seats in Strasbourg than the French National Front does, and the upswing of nationalist parties worries Sweden’s European Commissioner Cecilia Malmström.

“They’re scary,” Malmström said about the rise of nationalist, extreme-right, and xenophobic parties in the European parliament elections over the weekend.

“What worries me is that their rhetoric has infected other parties.That means it could be difficult henceforth to make decisions on everything from labour migration, taking more responsibility for refugees… it won’t be easier after this.”

On to Norway, and a deal nearly done from TheLocal.no:

Rosneft to buy stake in Norway drill company

Russian state oil giant Rosneft could buy a major stake North Atlantic Drilling, a subsidiary of Norway’s Seadrill, in a deal which would give the company access to the lucrative Russian drilling market.

Norwegian shipping tycoon John Fredriksen announced the deal, which will see Rosneft book “a significant portion” of the company’s idle rigs, at the St. Petersburg Economic Forum on Saturday.

“We have sought to access the growth opportunity represented by the Russian market for several years,” NADL chief executive Alf Ragnar Lovdal, said in a statement.  “After the closing of this transaction, will have created a powerful force in the Russian market and for the Arctic region.”

On to Copenhagen and more right wing triumphs via EurActiv:

Danish far right party wins in EU elections, doubles mandate

The far-right Eurosceptic Danish People’s Party has won 26.7% of the votes and becoming by far the biggest Danish party in the Parliament with four seats. The party has doubled its mandates since 2009.

Meanwhile, the two biggest parties in the Danish parliament, the Social Democrats (at 19.1%) and the Liberals (16.7%) both had poor showings, each losing a seat, leaving them at three and two seats, respectively. The Greens lost one seat, while the Conservatives, the Social Liberals and a left-wing Eurosceptic party together make up Denmark’s 13 mandates.

The Danish People’s Party has looked to Britain’s UKIP for inspiration, calling for less EU influence over Danish matters, an end to ‘benefits tourism’ and tougher border controls. After Sunday, UKIP, the Danish People’s Party and France’s National Front are the three most successful eurosceptic parties in this Parliament election. But the three parties are unlikely to work together in the same group, as the Danish People’s Party has decided to seek influence via the European Conservatives and Reformists’ group of Tory MEPs.

Germany next, with a qualified win for the Iron Chancellor via TheLocal.de:

Merkel’s party tops vote but loses ground

Chancellor Angela Merkel’s conservatives came out ahead in European Parliament elections, official results showed on Monday, but a neo-Nazi party also won a seat in Brussels, echoing far-right gains elsewhere.

Merkel’s Christian Democrats (CDU) and their Bavarian sister party the CSU – a team that last September celebrated a landslide win at the national level – between them secured 35.3 percent of votes cast.

The neo-Nazi National Democratic Party of Germany (NPD), won 300,000 votes, one percent of the total, and so wins its first seat in the 751-member European parliament.

Another winner from EUbusiness:

German’s anti-euro professor Bernd Lucke scores in EU polls

Bernd Lucke, an economics professor with boyish looks, seems an unlikely revolutionary, but in little over a year he has led his German anti-euro party from the political wilderness straight into the European parliament.

Lucke’s small Alternative for Germany (AfD) party demands nothing less than Germany’s return to its once beloved Deutschmark, an end to EU bailouts and the orderly dissolution of the euro common currency.

Like populist leaders elsewhere in Europe, Lucke wants to repatriate many powers from Brussels to the national level, although he doesn’t want to scrap the EU itself — a stance summed up in the vague campaign motto “Have Courage to Be Germany”.

And a predictable reaction from EUbusiness:

German Jews shocked at far right’s EU success

The leader of Germany’s Jewish community Monday denounced gains made by far-right parties in EU-wide elections and urged democratic forces to block their path and defend European values.

Dieter Graumann, the president of the Central Council of Jews in Germany, said the extremist parties performed “shockingly well”, as feared, in Sunday’s European parliamentary vote.

He pointed to France, Hungary and Greece, saying in a statement: “Right-wing MPs are now coming into the European Parliament from all over Europe in order to implement their anti-European and extremist course.”

“Democratic parties are now called on to curb this way of thinking and to defend and maintain European values,” Graumann said.

More of the same from TheLocal.de:

Steinmeier ‘horrified’ at far-right seat win

Germany’s foreign minister said on Monday he was horrified that the neo-Nazi party, the NPD, had won a seat in the European Parliament. Jewish leaders and Chancellor Angela Merkel also voiced concern about the rise of the far right.

“There is no doubt that many populist, eurosceptic and even nationalistic parties are entering the European Parliament,” Frank-Walter Steinmeier said, speaking on NTV television.

“In some countries it won’t be as bad as had been feared, for example in the Netherlands, but France’s National Front is a severe signal, and it horrifies me that the NPD from Germany will be represented in the parliament,” he said, referring to the extremist anti-immigrant National Democratic Party of Germany.

From Deutsche Welle, a reminder:

Audi comes clean about its Nazi past

A historical probe commissioned by the German car maker Audi revealed Monday that the company’s predecessor exploited thousands of slave laborers under the Nazi dictatorship.

German car maker Audi unveiled a dark chapter in its history on Monday, saying its predecessor company had exploited slave labor under the Nazi regime on a massive scale.

A historical investigation commissioned by the company found that thousands of concentration camp inmates had been forced to work for Auto Union, an automobile manufacturer founded in 1932 and a forerunner company of today’s Audi AG .

Audi is the last major German car company, after Volkswagen, BMW and Daimler, to come clean about its Nazi-era history, and the study marked a clear push to be more transparent about that past.

On to Brussels and a post-election quit from euronews:

Belgian PM hands in resignation after defeat in elections

Belgium’s Prime Minister Elio Di Rupo has handed his government’s resignation to the King. It comes after this weekend’s general election which saw his Socialist party defeated.

The palace confirmed that King Philip had accepted the resignation and that the government would continue in its job until a new one was sworn in.

The Flemish separatist party N-VA won 32 percent of the vote, while the Socialists managed 30 percent. The NVA wants to dissolve Belgium and have it become a confederation of regional governments divided along linguistic lines.

On to France and explanation of sorts from TheLocal.fr:

‘We’re not racist, just angry’ say French voters

The historic victory for the far-right National Front party does not mean France is a country full of racists, voters told The Local on Monday. Rather people are simply seething with anger at the main political parties’ inability to fix the economy.

There were no anti-National Front demonstrations on Monday morning in the heart of Paris, the day after the anti-EU, anti-immigrant party took first place in the European Parliament elections in France.

In fact voters shrugged their shoulders in typical Gallic fashion and told The Local they were not surprised the party had won 25 percent of the vote, beating the centre-right UMP and the Socialists by wide margins.

Predictable panic from Europe Online:

Hollande holds crisis talks on far-right win in European elections

French President Francois Hollande convened a crisis meeting Monday with several cabinet ministers to discuss the victory of the far-right National Front (FN) – and trouncing of his Socialists – in the European elections.

Prime Minister Manuel Valls, Foreign Minister Laurent Fabius and Finance Minister Michel Sapin were among the ministers who huddled with Hollande to discuss how to proceed after the FN became France’s biggest party in Europe.

Provisional results showed Marine Le Pen’s anti-Europe FN winning 26 per cent of Sunday’s vote, a four-fold increase on its take in the last European election in 2009.

And a pickle for a predecessor from TheLocal.fr:

Cops grill Sarkozy ally over €400m state payout

A right-hand man to former French president Nicolas Sarkozy was detained for questioning on Monday over his role in a highly controversial state payout to disgraced former tycoon Bernard Tapie.

Claude Gueant, a former interior minister who also served as Sarkozy’s chief of staff, was placed in custody after he arrived at the headquarters of France’s fraud squad to clarify his role in the €400 million($557-million) payout to Tapie in 2008.

The payment was connected to a dispute between the businessman and partly state-owned bank Credit Lyonnais over his 1993 sale of sportswear group Adidas.

Next, Austria, and more electoral results from TheLocal.at:

EU Election: ÖVP defends first place

Austria’s conservative ÖVP (People’s Party) has emerged the winner in Sunday’s European elections, in spite of slight losses compared to its result in the 2009 elections.

According to preliminary results the ÖVP won 27.3 percent of the vote.  The SPÖ received 23.8 percent, almost unchanged in second place.

Both the right wing, eurosceptic FPÖ (Freedom Party), and the Grüne (Greens) made strong gains, coming in at third and fourth place respectively, with 19.5 percent and 15.1 percent.

The FPÖ made gains of 6.8 percent and will double its seats in the European Parliament – with four instead of two representatives.

Off to Poland with New Europe:

Poland’s ruling party, opposition share seats in European Parliament

Poland’s ruling Civic Platform (PO) and opposition Law and Justice (PIS) parties each took 19 seats in the European parliament after the European elections Sunday, according to preliminary results.

PO secured 31.29 percent and PIS 32.35 percent in voting in Poland. Social Democrats, New Right and Polish Peasant’s Party won five seats, four seats and four seats respectively, according to results from 91 percent of the polling stations in the country.

Prime Minister Donald Tusk said Sunday a low turnout in European Parliament elections “is a problem not only in Poland, but I would like to see a time when everyone … sees voting as something positive.”

Hungary next, via EUobserver:

Hungarian PM breaks ranks on Juncker

Hungarian Prime Minister Viktor Orban has said he will not support Jean-Claude Juncker’s bid to become president of the European Commission even if the centre-right European People’s Party (EPP) wins the European elections.

Orban is the first EPP leader to publicly break ranks on the issue.

“We don’t think he should lead the Commission,” Orban said in an interview with Hir TV on the eve of the election.

The EPP supported Orban’s ruling Fidesz party when the government was under criticism over questions of rule of law, media freedom and constitutional changes. Orban said “there is no way” he would vote for Juncker.

Next, Romania, via EUbusiness:

Ruling Social Democrats win Romania EU vote: official results

Romania’s ruling left-wing alliance led by the Social Democrats won 37.6 percent of the vote in European parliamentary elections, official results showed Monday.

Prime Minister Victor Ponta’s PSD won 16 seats according to official data issued after 99.99 percent of Sunday’s ballots had been counted.

The EU’s second-poorest country since joining the bloc in 2007, Romania will send 32 legislators to the European Parliament. The opposition National Liberal Party came second with around 15 percent of the vote, giving them six seats.

Portugal next, with EurActiv:

Socialists win in Portugal, stay second in Spain

Portugal’s main opposition Socialists won elections for the European Parliament yesterday in an austerity-weary country which earlier this month exited an international bailout. In Spain, the opposition Socialists came second, but both centre-left and centre-right lost support compared to 2009.

With more than 99% of the vote counted, the centre-left Socialists had won with 31.45% of the ballot that was marked by high abstention levels at over 66%.

The ruling coalition of Prime Minister Pedro Passos Coelho’s Social Democrats and their smaller rightist partner CDS-PP that implemented painful cuts over the three years of bailout, garnered 27.7%.

It was followed by the Communist-Greens alliance, with 12.7% and the agrarian-environmentalist Partido da Terra (Party of the Earth), which built its campaign on disillusionment with traditional political parties.

El País takes us to Spain:

Spain’s two-party system dealt major blow in EU elections

  • Popular Party (PP) and the Socialists (PSOE) fail to attract even 50 percent of the vote
  • But xenophobe and anti-European parties fail to make any headway in Spanish polls

Spain’s two main parties, which have been taking turns in power since 1977, obtained their worst results in democratic history at the European elections on Sunday.

Together, the Popular Party (PP) and the Socialist Party (PSOE) failed to attract even 50 percent of the vote, compared with the 80 percent they garnered at the 2009 EU elections.

This massive loss of support reflects the rapid rise of smaller parties that portray the two main players as being similarly corrupt, beholden to money and unable to effectively deal with the economic crisis.

El País again, with another resignation:

Socialist leader throws in the towel after poor showing at European elections

  • Alfredo Pérez Rubalcaba calls extraordinary party meeting in July to choose new leadership

Alfredo Pérez Rubalcaba and his team have decided to throw in the towel. In the wake of the Socialist Party’s (PSOE) poor showing at Sunday’s European elections, the leader of the main opposition group in Spain’s Congress has called an extraordinary party meeting for July 19 and 20. The order of the day will be choosing a new general secretary, given Rubalcaba’s decision to bow out.

“The meeting will serve for us to choose new leadership for the party,” he told the press on Monday. “I am assuming my responsibility for the results.”

Rubalcaba described Sunday’s election results – which saw the PSOE take just 14 seats, with 23.03 percent of the vote – as “bad, with no palliatives.” The Popular Party (PP), which is currently in power in Spain, took 16 seats (26.04 percent) at a poll that saw the two main parties secure their worst results in democratic history.

And El País one more time, with a symbolic result:

Town with controversial “Killjews” name votes in favor of change

  • Burgos municipality will become “Little Fort on Jew Hill” following local referendum

The end has come for Castrillo Matajudíos, the small village in Burgos province that gained global notoriety after announcing it would hold a referendum on May 25 to consider a name change from the current “Little Hill-Fort of Jew Killers.”

“Everyone is watching expectantly to see what we will do: in Italy, in New York…” said Mayor Lorenzo Rodríguez a few days before the vote, which was made to coincide with elections to the European Parliament.

The uncertainty came to an end at 8pm on Sunday, when the vote count showed a majority support for changing the village’s name to Castrillo de Mota de Judíos, or Little Hill-Fort on Jew Hill. “Mota” means hill or mound in Spanish, and the mayor has posited that this was probably the community’s original name before a spelling mistake on an official document changed it to Matajudíos in 1623.

Off to Italy and a market response from TheLocal.it:

Italian stocks surge after Renzi’s EU victory

Italian stocks rocketed up 3.61 percent on Monday after Matteo Renzi’s Democratic Party swept to victory in the European Elections, claiming 40.8 percent against of the vote against 21.2 percent for the anti-establishment Five Star Movement and 16.8 percent for disgraced former leader Silvio Berlusconi.

The victory will give Renzi’s centre-left party a leading voice in Europe and bolster his ambitious reform programme.

The landslide gives the party the highest number of MEPs among Europe’s leftists and was one of the best showings for any European leader – a far higher result than the 25.4 percent it scored in a 2013 general election.

Cheering up also-rans with ANSA:

Grillo tells M5S supporters not to lose heart

  • Leader tells supporters M5S opposition will do more

Beppe Grillo, leader of the anti-establishment 5-Star Movement (M5S), urged his followers Monday to not lose heart despite the political party’s failure to do as well as it expected in the European elections that ended Sunday.

“Do not be discouraged, (I am) confident that we can move forward,” said Grillo, whose party won 21.16% of votes, in second place behind the ruling Democratic Party (PD) with 40.81%.

The M5S will make its mark as a strong opposition force that will demand positive changes to Italy, added Grillo in comments posted on his blog, one of his favoured methods of communication.

ANSA again, with more also-rans:

Berlusconi says FI remains ‘linchpin’ despite poor result

  • Ex-premier says his ‘guiding star’ is uniting moderates

Ex-premier Silvio Berlusconi said Monday that his Forza Italia (FI) is the linchpin of the centre right and a “decisive partner” of the Italian government despite placing third in European Parliament elections. Premier Matteo Renzi’s centre-left Democratic Party (PD) took almost 41% of Sunday’s vote while FI captured less than 17%. Comedian-turned-politician Beppe Grillo’s anti-establishment, Euroskeptic 5-Star Movement (M5S) took 21.16%.

Berlusconi was unable to stand or even vote in the election after being ejected from parliament following a binding tax-fraud conviction last year. The three-time premier and his supporters say that conviction is the result of persecution by left-wing elements in the judiciary who are trying to eliminate him from Italy’s public life. Berlusconi said that despite the poor showing, his party is still important to ensuring necessary government reforms announced by Renzi are passed.

“We are at the same time the decisive partners without which there are not the numbers in Parliament to make real reforms, definitive and lasting for the good of the country,” he said.

And some more Bunga Bunga woes from TheLocal.it:

Ex-MP ‘pilfered public money’ in Iraq deal

  • Italy’s former environment minister has been placed under house arrest for alleged embezzlement involving an Iraq water deal.

Corrado Clini, who served as environment minister with Mario Monti’s government, allegedly stole over €3 million from public money that was meant to fund a water purification project in Iraq, Corriere della Sera reported.

A businessman from Padua, whose company oversaw the deal in Iraq’s Tigris and Euphrates basin, was also placed under house arrest by Italy’s Finance Police on Monday morning, the newspaper added.

They face charges of embezzlement against the Italian ministry of environment, land and sea.

After the jump, its on to Greece and Syriza’s win and woes for the losers, the latest electoral and uprising news from the Ukraine, electioneering and ridicule in Egypt, intensified turmoil in Libya, Brazilian pre-World Cups woes and tensions, elections in Colombia and Venezuela, more austerity Down Under [targeting jobless youth], Macau unrest, Indian triumphalism, Thai troubles, more signs of a Chinese slowdown, environmental woes, and Fukushimapocalypse Now!. . .
Continue reading

Quote of the day: Europe’s neoliberal curse


From Serge Halimi, writing in Le Monde Diplomatique:

The European utopia is turning into a system for delivering punishment. As Europe’s regime gets tougher, there is a growing sense that interchangeable elites are taking advantage of each crisis to tighten their austerity policies and impose their federal fantasy. This twin objective has the support of boardrooms and newsrooms. But even if you boost their ranks with German rentiers, a few Luxembourgers specialising in tax evasion and most of France’s Socialist leaders, popular backing for the present “European project” isn’t much greater.

The European Union does not stop chiding states that fail to be concerned first with reducing their budget deficit, even when unemployment is rife. As they usually fall into line without further persuasion, the EU immediately imposes a programme of corrective measures, with objectives worked out to the last decimal point and a timetable for completion. But when a growing number of sick Europeans have to forgo treatment because they cannot afford it, when infant mortality shoots up and malaria returns, as it has done in Greece, national governments do not have to fear flak from the European Commission. For the convergence criteria, so strictly applied to deficits and debt, do not apply to employment, education and health. Yet everything is connected: cutting state spending almost always means reducing the number of hospital doctors and rationing healthcare.

The European elections: Some video reports


Elections over the past tow weekends have heralded a major shift in the European parliament, the planet’s largest regional transnational legislature.

The strongest shifts were in the election of a large number of delegates opposed to the very participation of their own countries in the European Union, and in the election of others strongly opposed to the harsh austerian polities demanded by the EU’s other governing body, the European Commission, and the central bank enforcing policies of the European Monetary Union.

First up, from Britain’s Channel 4 News:

Seismic shift to the right in European politics

Program notes:

France was at the centre of a shift in European politics to the right in the Euro elections. Europe Editor Matt Frei was in Paris, where Front National was celebrating.

Next up, a simple graphic presentation from Agence France Presse on the makeup of the new legislature:

The new European Parliament

Program notes:

France’s far-right National Front and Britain’s UKIP led a eurosceptic “earthquake” in EU parliamentary polls, sending shockwaves across Europe and beyond. The EU Parliament’s own projections early on Monday showed the extent of the anti-EU breakthrough, with eurosceptic parties set to win around 140 seats in the 751-seat assembly.

Finally, your basic talking heads panel analyzing the results and their political implications from euronews:

EU election special: full analysis of vote results

Program notes:

Europe has made its choice, time now to find out what the results mean – watch the special euronews coverage from Brussels.

Chart of the day: Europe’s ranks of the poor


From Eurostat, those at rick of poverty or social exclusion, rates for 20i1 [yellow] and 2012 [blue], with rates for the 28-member European Union and then 17-member common currency [euro]] area on the left:

BLOG Poverty

From Eurostat:

In 2012, 124.2 million people, or 24.8 % of the population, in the EU-28 were at risk of poverty or social exclusion (AROPE), compared with 24.3 % in 2011. The AROPE indicator is defined as the share of the population in at least one of the following three conditions:

  1. at risk of poverty, meaning below the poverty threshold,
  2. in a situation of severe material deprivation,
  3. living in a household with very low work intensity.

The reduction of the number of persons at risk of poverty or social exclusion in the EU is one of the key targets of the Europe 2020 strategy.

The AROPE figure for the EU-28 average, calculated as a weighted average of national results, masks considerable variation between Member States. At one extreme, the Member States with the highest AROPE rates in 2012 were Bulgaria (49.3 %), Romania (41.7 %), Latvia (36.2 %), Greece (34.6 %), Lithuania, Hungary and Croatia (all three around 32.0 %). At the other extreme, the share of the population at risk of poverty or social exclusion was the lowest in the Netherlands (15.0 %), the Czech Republic (15.4 %) and Sweden (15.6 %). Overall AROPE rate has slightly increased at EU-28 level between 2011 and 2012 (0.5 percentage points (pp)). The risk of poverty or social exclusion rose by 3.6 pp in Greece and 2.5 pp in Cyprus, decreasing by more than 3 pp only in Latvia (-3.9 pp).

Headlines: Polls, trolls, laws, toxins, more


Long visit from a kidlet, so late in posting. But major elections in Europe hint at major changes to come, and much more. . .so on with the show!

First, takin’ to the streets with RT:

World protests Monsanto grip on food supply chain

Hundreds of thousands people have united across the world to voice concern over the spread of GMO foods and crops and to raise awareness over the biotech giant Monsanto’s growing grip on the global food supply chain.

It was not only the fear of genetically modified organisms in foods that knows no boundaries. Activists on five continents around the globe, comprising of 52 nations joined the fight under the March against Monsanto umbrella.

Organized worldwide, peaceful family protests spoke out for the need to protect food supply, health, local farms and environment. Activists also sought to promote organic solutions to food production, while “exposing cronyism between big business and the government.”

With anti-GMO rallies having taken place in around 400 cities across the globe it’s still hard to estimate how many people participated in the event. Last year over 2 million people in 436 cities in 52 countries worldwide marched against the largest producer of genetically engineered seeds.

Next up, the back story to a tragedy from the Guardian:

Sheriff highlights mental-health shortcomings after California rampage

  • ‘There’s a general lack of resources in community treatment’
  • Bereaved parent blames ‘craven’ politicians and NRA

Police named Elliot Rodger, 22, the British-born son of a film director, as the suspect behind Friday’s murder spree in and around the Isla Vista campus of the University of California at Santa Barbara, which left a trail of 10 separate crime scenes and 13 people injured.

On Sunday, Santa Barbara’s county sheriff, Bill Brown, blamed failures in mental-health treatment for the fact that Rodger’s behaviour had worried people around him and precipitated three contacts with police, most recently last month, but had not caused an intervention that might have averted the slaughter.

“I think the fact of the matter is, there’s a general lack of resources in community mental-health treatment generally,” he told CNN on Sunday. “There’s also probably a lack of notification by healthcare professionals in instances when people are expressing suicidal or in certain cases homicidal thoughts or tendencies.”

From the Republic Report, back story to another kind of tragedy:

Top Donor for House Education Chair is For-Profit College Facing Federal and State Fraud Probes

Representative Virginia Foxx (R-NC) has no serious opposition in her bid for reelection, yet has received more than $800,000 in campaign contributions. More than half of that money has come from outside North Carolina, much of it from corporate special interests.

The single biggest donor group to Foxx, by almost a factor of two, is Santa Ana, California-based, for-profit Corinthian Colleges.

Corinthian, which operates Everest, Heald and WyoTech colleges, has a troubling record. The company faces a major lawsuit from California attorney general Kamala Harris, who has charged that Corinthian has engaged in “false and predatory advertising, intentional misrepresentations to students, securities fraud and unlawful use of military seals in advertisements.” Corinthian is also under investigation by a group of sixteen state attorneys general (Arkansas, Arizona, Colorado, Connecticut, Hawaii, Idaho, Iowa, Kentucky, Missouri, Nebraska, New Mexico, North Carolina, Oregon, Tennessee, Washington and Pennsylvania) into its recruiting and business practices, and faces a separate probe by Massachusetts’ AG.

Federal investigators also are probing Corinthian. In June 2013, the Securities and Exchange Commission issued a subpoena to the company concerning student recruitment, degree completion, job placement, loan defaults and compliance with U.S. Education Department rules.

And the Los Angeles Times defines today’s Obama Democrats:

Past Republican donors rebuffing GOP candidates to back Jerry Brown

With Democratic Gov. Jerry Brown expected to romp to reelection this year against little-known rivals, many donors who gave Republican candidates more than $37 million in the last gubernatorial contest are now keeping their hands in their pockets.

But those who are writing checks are largely giving them to … Jerry Brown.

The governor has received nearly $2 million, a Times analysis of campaign reports found, from donors who fueled Meg Whitman’s and Steve Poizner’s Republican gubernatorial bids in 2010. That’s more than three times as much as his current GOP rivals have received from these donors.

From the Guardian, the results those big bucks produce:

Pensions are the spectre hanging over America, and your problem too

  • Most private-sector workers grew up with no promise of pensions, but the problem of our cities and states haunts us all

You may know that you’ll never collect a penny of either public or private pension income when you retire. That doesn’t mean those scary headlines about pensions – and pension reform – won’t cast a scary shadow across your own life. You may as well start thinking about how you’re going to cope with the fallout today.

Public pension plans themselves today calculate that they have about $1tn of unfunded liabilities – that’s the gap between how much they have on hand in assets today and how much they estimate they’ll need to pay out in benefits to members of the plans. In some cases, that sounds scarier than it is: what is just as important is its “funded ratio”, or the percentage of its liabilities covered by its assets.

The bad news? Morningstar calculates that safe pension plans are increasingly rare: more than half of all states have a funded ratio that falls below 70%, the threshold for being deemed fiscally sound. As recently as 2011, only 21 states failed that test (although that’s bad enough … ) and theoretically the rise in the stock market should have given the value of pension fund portfolios a big boost, making them look a lot healthier.

On to Europe, first with financial rumblings from the Associated Press:

ECB ready to act, but how much will it help?

Investors and analysts are nearly certain: The European Central Bank will take action at its next meeting to boost the tepid recovery.

What’s not at all certain is how much good that can do.

Any help is needed. The weak recovery in the 18 countries that use the euro is a source of risk and uncertainty for the rebounding U.S and global economy. The eurozone economy grew only 0.2% in the first quarter, gaining no speed from the quarter before. Worse, inflation is dangerously low at an annual 0.7%, well below the ECB’s goal of just under 2%.

And on with the day’s major European story, elections — first from Deutsche Welle:

EU vote sees boost for right wing in France, Austria and Greece

Marine Le Pen’s far-right National Front party is leading in the European Parliament elections in France, according to early projections. Results from across the 28-member bloc are coming in throughout the the evening.

According to early projections in Austria, the far-right FPÖ saw strong gains at 20 percent, compared to the 7.3 percent they garnered in 2009.

Belgium’s Flemish nationalist N-VA party looked set to make strong gains, partial results indicated, with 30 to 32 percent of the vote. TV exit polls in Denmark say the anti-immigration Danish People’s Party is set to take the biggest share of the Danish vote.

Britain next, with BBC News:

UKIP heading for clear victory in UK European elections

UKIP is course for an emphatic victory in the European elections in the UK – with leader Nigel Farage promising to use it as a springboard for next year’s general election.

Labour’s vote is up significantly on 2009 but it is vying with the Tories for second place.

The Lib Dems have come fifth behind the Green Party in most areas and have lost all but one of their seats.

Only Scotland, London and Northern Ireland have yet to declare.

One outcome, via the Guardian:

Triumphant Ukip draws up hitlist of 20 key seats to storm Commons

  • Nigel Farage to head ‘ruthless’ drive on Westminster, as Nick Clegg faces Lib Dem revolt over poor poll showing

Nigel Farage’s Ukip is to target at least 20 parliamentary seats at the next general election, using his party’s success in Thursday’s council elections as the launch pad for an all-out assault on the House of Commons, party officials have revealed.

In a move that will further unnerve the Tories, Labour and the Liberal Democrats – all of which have suffered from the Ukip surge – senior party officials said the next move would be to identify specific, mainly marginal, seats, where it now has a strong base of councillors. It is imitating the tactics that established the Liberal Democrats as a strong parliamentary force in the 1990s.

The extent of Farage’s ambitions came to light as Lib Dem leader Nick Clegg faced a serious backlash from party malcontents, including at least two parliamentary candidates and several prominent councillors, as activists gathered names on a petition demanding he be replaced immediately by a new leader.

On to Ireland, and more meaningful results from the Guardian:

Sinn Féin tastes electoral success north and south of the Irish border

  • Gerry Adams’s plan to govern on both sides of border by 100th anniversary of Easter Rising in 2016 moves a step closer

Sinn Féin has secured the single biggest number of first preference votes in Northern Ireland’s local government elections, while across the border in the Republic it won 25% of the vote and its highest number of councillors.

The electoral success brings a step closer Gerry Adams’ strategic plan to be in government on both sides of the Irish border by 2016 – the centenary of the Easter Rising.

It also suggests that his recent arrest in connection with the IRA’s kidnapping, killing and secret burial of Jean McConville did not seriously damage Sinn Féin’s election campaign. But the overall unionist vote in Northern Ireland also held up, with the Democratic Unionist party winning 130 seats compared with Sinn Féin, which returns to the new council chambers with 105 seats.

Scandinavia next, first with Bloomberg:

Voters Punish Reinfeldt as Protest Groups Gain in Nordic EU Vote

Prime Minister Fredrik Reinfeldt emerged as Sweden’s biggest loser in European parliament elections as voters across the Nordic region punished those in power.

Reinfeldt’s Conservatives fell 5.2 percentage points to 13.6 percent, becoming only the third biggest party in Sweden, according to a preliminary count from the Election Authority. The Greens jumped to 15.3 percent, while the Social Democrats won 24.4 percent, grabbing the most seats.

“This strengthens the stamp of defeat that has surrounded the government for a while now,” said Ulf Bjereld, a political science professor at Gothenburg University. “At the same time, from the Social Democrats’ perspective, one can note that they didn’t even manage to reach their utterly modest target of 25 percent.”

On to Copenhagen with EUbusiness:

Anti-immigrant Danish party wins EU vote: exit poll

The anti-immigrant Danish People’s Party won the election in Denmark for the European Parliament with 23 percent of the votes, according to an exit poll Sunday.

The poll, which was carried out by the firm Epinion on behalf of national broadcaster DR, put the party ahead of the Social Democrats who scored 20.2 percent.

“My mother’s heart swells, because I’m simply so proud if that’s the result,” the party’s charismatic cofounder and former leader Pia Kjaersgaard told DR in reaction to the poll. If proved correct, this result would give the party three of Denmark’s 13 seats in the European Parliament.

Germany next, first with TheLocal.de:

Eurosceptics and SPD celebrate EU vote gains

Chancellor Angela Merkel’s conservative bloc will remain Germany’s biggest party in the EU Parliament, according to exit polls, but lost ground to their rivals. It was a particularly good night for the centre-left and eurosceptic parties.

Merkel’s Bavarian allies, the Christian Social Union (CSU), were one of the main losers of the night, with their vote sinking by eight percent on the last EU elections in 2009.

It meant that Merkel’s CDU/CSU bloc recorded their worst ever result in an EU election with 35.8 percent – down from 37.9 percent in 2009.

On to Belgium with the Associated Press:

Belgium faces tough coalition talks after vote

Initial results of Belgian national elections show big gains for the regionalist N-VA party in northern Flanders while the PS socialists were the biggest vote getters in southern Wallonia, raising the possibility of complicated coalition talks to form a government

With nearly half the votes counted, the Dutch-speaking N-VA party of Bart De Wever surged to 34 percent of Flemish votes in parliament, a rise of 6 percentage points.

The PS of Prime Minister Elio Di Rupo has 29 percent in Francophone Wallonia. That’s a drop of 7 percentage points but still enough to remain biggest vote getter in Di Rupo’s region.

France next, first with Reuters:

French far right poised for win as Europe votes on ‘Super Sunday’

The far right anti-EU National Front was forecast to win a European Parliament election in France on Sunday, topping a nationwide ballot for the first time in a stunning advance for opponents of European integration.

Critics of the European Union, riding a wave of anger over austerity and mass unemployment, gained ground elsewhere but in Germany, the EU’s biggest member state, the pro-European center ground held firm, according to exit polls.

In France, Marine Le Pen’s nationalist movement which blames Brussels for everything from immigration to job losses, was set to take about 25 percent of the vote, comfortably ahead of the conservative opposition UMP on about 21 percent.

President Francois Hollande’s Socialists suffered their second electoral humiliation in two months after losing dozens of town halls, trailing far behind in third place with about 14.5 percent, according to projections based on partial results.

More from Bloomberg:

French National Front Victory Needs EU Response, PM Valls Says

French Prime Minister Manuel Valls said the European Union needs to respond to the “earthquake’ of the National Front’s first-ever victory in nationwide voting in European parliamentary elections.

The anti-euro, anti-immigration party headed by Marine Le Pen won at least 25 percent of the vote, according to estimates by TNS Sofres, Ipsos, and Ifop. Nicolas Sarkozy’s UMP Party placed second with about 20 percent, with the ruling Socialist Party coming in a distant third, with between 14 percent and 15 percent, the polls showed.

‘’Europe has disappointed,” Valls said in a televised address late yesterday from Paris. “Europe needs to give hope again. We need a Europe that is stronger, with more solidarity, more fairness.”

Next up, on to Geneva and a non-electoral story from Bloomberg:

Credit Suisse Offers Map to 13 Swiss Banks in U.S. Tax Probes

Thirteen Swiss banks face rising stakes in criminal tax-evasion probes after Credit Suisse Group AG (CSGN) set a new standard for punishment in the U.S. crackdown on offshore tax evasion.

Julius Baer Group Ltd., Zuercher Kantonalbank and the Swiss unit of HSBC Holdings Plc (HSBA) are among those seeking to avoid pleading guilty to helping Americans cheat the Internal Revenue Service — an unprecedented step taken by Credit Suisse on May 19. Their degree of wrongdoing and cooperation with investigators will help decide their fate, said the top U.S. tax prosecutor.

“We will look at the facts and circumstances of each investigation to determine an appropriate penalty,” Assistant U.S. Attorney General Kathryn Keneally said in an interview. “It should be very clear from the Credit Suisse investigation that cooperation, or the lack thereof, is an important factor.”

Then on to Vilnius with BBC News:

Lithuania’s Dalia Grybauskaite wins re-election after run-off

With nearly all votes counted she had won 58% with her Social Democrat rival Zigmantas Balcytis trailing on 42%.

The election was fought amid rising concerns in the region after Russia’s annexation of Crimea from Ukraine.

Ms Grybauskaite thanked her supporters for granting her a second term. “No president has been elected twice in a row in Lithuania. It will be a historic victory for all of you,” she said.

Budapest next with EUbusiness:

Hungary’s right-wing dominates EU polls

Hungary’s right-wing Fidesz party swept to victory in European Parliament elections on Sunday, ahead of the far-right Jobbik party who overtook the Socialists to come second.

Just two months after a convincing victory in national elections, the Fidesz party of Prime Minister Viktor Orbantook an even more commanding win in the EU poll with 51.5 percent of the vote.

But turnout was poor at 29 percent — the second-lowest ever for European polls in the country. Orban’s party will send 12 MEPs to the Strasbourg parliament, taking up over half of Hungary’s 21 seats.

And on to Slovakia with EUobserver:

Slovakia’s EP election turnout set for all-time low of 13%

Slovakia is set to rewrite the record books of EU elections again, with unofficial turnout figures suggesting that just some 13 percent of people cared to vote.

If confirmed, this would surpass both the pessimistic pre-election estimate of 16-21 percent turnout and past results – 19.6 percent in 2009 and 16.9 percent in 2004. The latter was the lowest ever score in the union’s history.

Slovakia’s EU commissioner Maros Sefcovic, campaigning for the ruling social democrats (Smer-SD), said politicians need to seriously think about how to tackle the so-called Slovak paradox. People are generally supportive of EU membership and integration, but show an unprecedented lack of interest in the EP vote.

A non-slectoral headline from the Balkans via The Wire:

Historic Floods in the Balkans Give Way to Mudslides, Disease, and Landmines

Over the course of several days earlier this week, three-months-worth of rain hit the Balkan region. On Monday, the Bosnian government reported that one million residents — a quarter of the country’s population — were cut off from clean water, and 100,000 buildings destroyed.

Both Bosnia and Serbia have declared a state of emergency, as have a number of Croatian villages. Serbia’s prime minister said the damage would cost the country hundreds of millions of euros.

Thousands of landslides were triggered by the flooding and the tens of thousands who have been evacuated from the affected regions will likely be forced to rebuild their lives from scratch. And that’s just the tip of the iceberg.

Next up Spain, and another shakeup from TheLocal.es:

Spain’s major parties lose out in Euro elections

  • Spain’s two main political parties, the ruling conservative Popular Party in power since 2011 and the Socialist Party, lost major ground in European Parliament elections on Sunday, official results showed.

The Popular Party elected 16 of Spain’s 54 lawmakers, down from 24 in the outgoing assembly while the Socialist Party took 14 seats, down from 23 with smaller parties, mainly on the left, making gains.

Polls had predicted a far more modest decline for the two main parties.

The result was seen as a sign of growing voter dissatisfaction with mainstream political parties in Spain as well as of fatigue with Prime Minister Mariano Rajoy’s austerity measures and economic reforms.

A critical regional result via EUbusiness:

Separatist party wins EU vote in Spain’s Catalonia

A long-standing separatist party, the Republican Left, won the European Parliament elections in Spain’s northeastern region of Catalonia on Sunday, official results showed.

The party captured 23.67 percent of the vote, beating the conservative Convergence and Union party, the biggest formation in Catalonia’s local parliament, which came in second with 21.86 percent of the vote.

Both parties want to hold a referendum on independence from Spain on November 9, flying in the face of fierce opposition from the central government in Madrid.

Italy next and a rare win for the incumbents from ANSA:

Renzi’s PD projected to land big win

Premier Matteo Renzi’s centre-left Democratic Party (PD) is set to be Italy’s top party in Sunday’s European elections by a big margin, according to early projections. A projection by SWG marketing for Sky gave the PD 36.8-38.8% of the vote, compared to 23.3-25.3% for comedian-turned-politician Beppe Grillo’s anti-establishment, Eurosceptic 5-Star Movement (M5S) and 15.6-17.6% for ex-premier Silvio Berlusconi’s opposition centre-right Forza Italia (FI).

Another projection by IPR marketing for State broadcaster Rai gave the PD a whopping 40.2% of the vote, compared to 23.1% for the M5S and 16% for FI. The PD said that, if the outcome is confirmed, it is an endorsement of the ambitious programme of institutional and economic reforms Renzi has embarked on since unseating his party colleague Enrico Letta in February to become Italy’s youngest premier at 39.

These include a drive to change the Constitution and transform the Senate into a leaner assembly of local-government representatives with limited lawmaking powers as part of an overhaul of the country’s slow, costly political machinery.

And from TheLocal.it, more bad news for a former incumbent:

Lebanon agrees to extradite Berlusconi ally

Lebanon is to extradite to Italy an ally of former prime minister Silvio Berlusconi wanted by Rome over mafia links, an official and his lawyer told AFP on Saturday.

“Lebanon has agreed to an Italian request to extradite (former) senator Marcello Dell’Utri,” who was arrested in Beirut in mid-April on an Interpol warrant, said lawyer Nasser al-Khalil. Khalil said he will appeal the extradition order.

An official source confirmed the decision and said outgoing President Michel Sleiman signed the extradition agreement with Italy just hours before his mandate ends at midnight Saturday.

After the jump, a Greek upset and furious reaction, the expected Ukrainian result, electoral and economic news from Latin America, Indonesian poverty’s impact on education, the Thai coup continues to unfold, the ongoing Chinese slowdown, major Abenomics questions for Japan, the latest environmental woes, plus added Fukushimapocalypse Now! Continue reading

Headlines: Bubbles, bull, bile, pols, threatcetera


Today’s compilation of things economic, political, and ecologic begins with a bubble inflating, via the San Francisco Chronicle:

S.F. hot housing prices back, bidding wars fiercer than ever

Prices have climbed 33 percent since 2011, with many neighborhoods exceeding that.

And while bidding wars have long been part of buying a home in Noe Valley, Glen Park and Cole Valley, they are now just as fierce in less fashionable areas such as the Excelsior, Mission Terrace and Ingleside.

Citywide, properties are now commanding an average of 10.7 percent more than asking price, according to Paragon Real Estate Group, with Bernal Heights leading the pack at an average of 21 percent over asking. That’s up from April 2012, when homes were selling for an average of 3.5 percent over asking.

The Wall Street Journal covers the other side of the coin:

Poor Americans Direct 40% of Their Spending to Housing Expenses

Housing and food expenses absorb more than half of low-income Americans’ annual spending. Even the wealthiest Americans devote a sizable share of their spending to keeping a roof over their heads and food in their refrigerators.

That’s according to the Labor Department’s latest survey of Americans’ buying habits. The consumer expenditure survey report released Friday contained data on spending from July 2012 through June 2013.

On average, the report found, Americans upped their spending on food, transportation, health care, housing and “cash contributions” like child support payments and charitable donations. Overall, they spent 1.5% more compared with the previous 12 months, while average income ticked down 0.2%.

While The Hill finds cause for rejoicing:

Bankers breathe sigh of relief as Tea Party power fizzles

Banks are breathing a sigh of relief after established GOP incumbents bested a handful of Tea Party challengers at the polls recently.

Industry sources said the establishment wins improve Republican odds of retaking the Senate, which would in turn lead to a friendlier climate for the long-beleaguered sector. But some note that the Tea Party has left a mark on the Republican Party, presenting a challenging landscape for the industry.

The Tea Party movement can trace its roots back to fury about bailouts and banks, but the force that pulled the Republican Party right in recent years is finding less success at the polls recently.

And from the East Bay Express, a sign of rationality:

Californians Overwhelmingly Support a Ban on Fracking

A new poll shows that a super-majority of California residents — 68 percent — say they support a ban on fracking in the state. Hydraulic fracturing is a controversial oil- and natural gas-extraction method that involves shooting massive amounts of water and toxic chemicals into the earth. It’s been linked to groundwater and air pollution and to causing earthquakes. The new survey was published earlier this week by public policy opinion research firm Fairbank, Maslin, Maullin, Metz & Associates, or FM3. Of the 807 California voters who were polled over the phone at random, 68 percent suppored a moratorium on fracking, with 45 percent of respondents stating that they “strongly” supported it.

Just a week after FM3 conducted its poll — and on the same day that the firm released its poll results — Californians learned that the estimate of extractable oil via fracking or acidization in the state was significantly lower than originally thought. The Monterey Shale, a 1,750 square-mile rock formation stretching from Sacramento to Los Angeles, was expected to provide 13.7 billion barrels of oil. A new estimate by the US Energy Information Administration lowered the number to 600 million barrels — about four percent of the original estimate.

From the San Francisco Chronicle, Proposition 13 strikes again [the measure limiting property taxes used to find the state’s schools]:

Governor’s teacher pension plan shocks school districts

When local school district officials pulled out their calculators and started crunching the numbers based on the governor’s new plan to shore up the state’s teacher pension fund, their jaws hit the floor.

The proposal, part of Gov. Jerry Brown’s May budget revision, would more than double the 8.25 percent of payroll that districts now pay toward teacher retirement each year. Phased in over seven years, districts would end up paying 19.1 percent.

For San Francisco, that would mean spending $34 million each year above the current $25.8 million for teacher pensions, district officials said Friday.

From Bloomberg, a dire warning?:

U.S. Retailers Missing Estimates by Most in 13 Years

U.S. retailers’ first-quarter earnings are trailing analysts’ estimates by the widest margin in 13 years after bad weather and weak spending by lower-income consumers intensified competition.

Chains are missing projections by an average of 3.1 percent, with 87 retailers, or 70 percent of those tracked, having reported, researcher Retail Metrics Inc. said in a statement today. That’s the worst performance relative to estimates since the fourth quarter of 2000, when they missed by 3.3 percent. Over the long term, chains typically beat by 3 percent, the firm said.

Extreme winter weather through February and March forced store closings and stifled sales, Swampscott, Massachusetts-based Retail Metrics said. Lower- and moderate-income consumers had little discretionary spending power, and chains also faced price competition from e-commerce sites.

And from CNN, the first of two headlines in what we suspect will be a stream to come as the long, hot summer commences:

Arizona residents evacuate as fierce wildfire rages

The online Incident Information System reported Friday night that much of the fire burned with lower intensity throughout the day, allowing firefighters to make some progress.

However, despite that progress, the total area scorched climbed to 8,500 acres that night, and the containment level held steady at 5%.

The equivalent of a battalion of firefighters, including 15 hotshot crews and three air tankers, have been fighting the fire between Flagstaff and Sedona — a tourist and retirement destination famed for its red rock formations — since Tuesday afternoon.

CNN again:

Wildfire scorches nearly 80,000 acres in Alaska

A days-long wildfire had covered more than 78,000 acres of Alaska’s Kenai National Wildlife Refuge by early Saturday, a state agency said.

The Funny River Fire began burning Monday evening and was 20% contained by early Saturday, Alaska’s Interagency Incident Management Team said.

No evacuations or injuries have been reported. There were more than 409 firefighters battling the blaze.

North of the border, and an all-too-familiar headline south of the border, via CBC News:

39% of unemployed have given up job search, poll suggests

In a poll carried out by Harris Poll and published Friday by employment agency Express Employment Professionals, the company surveyed 1,502 unemployed Canadians. None of them had a job, and not all of them were receiving EI benefits.

The results were eye-opening.

Some 39 per cent of those polled were in agreement with the statement that “I’ve completely given up on looking for a job” with five per cent saying they “agree a lot” 11 per cent saying they “agree somewhat” and 17 per cent saying they “agree a little.”

In the poll, which saw people respond to questions online over a week in April, more than a third responded they hadn’t had a job interview in over a month. A full 13 per cent of respondents said they hadn’t had a job interview since 2012 or before — well over a calendar year ago.

Britain next, and another slap on the wrist from BBC News:

Barclays Bank fined £26m for gold price failings

Barclays Bank has been fined £26m by UK regulators after one of its traders was discovered attempting to fix the price of gold. The trader, who has been sacked, exploited weaknesses in the system to profit at a customer’s expense, the Financial Conduct Authority (FCA) said.

The incident occurred in June 2012, the day after the bank was fined a record £290m for attempting to rig Libor. Barclays said it “very much regrets the situation” that led to the fine.

The FCA found the bank failed to “adequately manage conflicts of interest between itself and its customers”, in relation to fixing the price of gold.

The Independent sets a precedent:

Slovak Roma parents fail in attempt to block same sex couple adopting their children

A Slovakian couple who have accused Kent County Council of social engineering have failed in their bid to block the adoption of their two sons by a same sex couple.

The Catholic couple, who are of Roma origin, took their case to the High Court earlier this month in an attempt to prevent their sons, aged two and four, from being adopted by a same sex couple in Kent.

In the judgement – released on Friday –Sir James Munby, the most senior judge in the Family Court, refused the pair’s request, saying that they had no grounds in law to appeal the decision.

And Sky News covers hard times populism resurgent:

Parties Reel From UKIP Election Success

  • The establishment faces up to the fallout from UKIP’s election “earthquake” as it wins more than double the seats many predicted.

UKIP’s haul of seats in the council elections is up to 184 with the main parties now mulling the prospect of four-party politics in next year’s general election.

Nigel Farage has said his anti-EU party is a “serious player” for 2015 after they added 167 councillors at the expense of the Tories, Labour and Liberal Democrats.

UKIP made gains in traditional Labour and Conservative heartlands, including strong showings in Rotherham – where it returned 10 out of 21 councillors.

One reaction from EUbusiness:

British deputy PM faces calls to quit

Britain’s Deputy Prime Minister Nick Clegg came under pressure Sunday to step down as leader of the Liberal Democrats after the centrist party took a pounding in local elections.

Two would-be Lib Dem parliamentary candidates — staring at a much-reduced prospect of winning a seat at nexy tear’s general election — have put heir names to an online letter, signed by more than 200 party members, calling for Clegg to step aside.

He insisted Friday he would not quit despite being down 307 seats to 427 in the English local authority seats voted for on Thursday, with two of the 161 councils still to declare.

Sweden next, and a surge to the left form TheLocal.se:

Greens, feminists surge ahead of EU vote ‘thriller’

  • The Green Party climbed ahead of the Moderates into second spot in the polls ahead of Sunday’s EU elections with the upstart Feminist Initiative taking a further step forward in what promises to be a tough election to forecast.

The Green Party (MP) now has the support of 15.5 percent of the Swedish electorate ahead of Sunday’s vote, according to the latest opinion poll by Novus. The poll shows that the party has overtaken the Moderates who came in at 15 percent and now trails only the Social Democrats on 25.1 percent.

“We have not seen anything like it. I think that in Sweden, this is unique in itself,” said Torbjörn Sjöström at Novus to Sveriges Radio.

The Feminist Initiative (Fi) continued their dramatic success of recent months to claim a statistically significant rise to 5.4 percent and look set to claim their first seats in the parliament.

From BBC News, more of that hard times intolerance:

Brussels fatal gun attack at Jewish museum

  • Police have cordoned off the area but will not confirm if the gunman is still being pursued, as Duncan Crawford reports from the scene

A gunman has shot dead two men and a woman at the Jewish Museum in the Belgian capital Brussels.

A fourth person was seriously wounded, emergency services said.

The attacker arrived by car, got out, fired on people at the museum entrance, and returned to the vehicle which then sped away, Belgian media report.

Germany next, and political idiocy rebuked from EUbusiness:

Schulz mocked for ‘German’ appeal in EU election ad

The Socialists’ top candidate in European elections, Martin Schulz, drew online ridicule Sunday for telling Germans only a vote for his party would ensure one of their compatriots runs the European Commission.

“Only if you vote for Martin Schulz and the SPD (Social Democratic Party) can a German become president of the EU Commission” read an advertisement published in Germany’s top-selling Bild daily ahead of the election.

The appeal to national sentiment in the pan-European polls quickly sparked derisive commentary on Twitter under the hashtag #NureinDeutscher (Only a German).

“Youth unemployment in Europe is a huge problem, only a German can solve it,” quipped journalist and blogger Tilo Jung.

From Reuters, deals undone:

Germany stops numerous arms exports, risks compensation fees: report

Germany’s national security council declined two-thirds of applications for arms export licenses at its most recent sitting three weeks ago, German news weekly Spiegel said on Saturday.

The economy ministry had prevented a license application to export to Saudi Arabia 500 million euros worth of sight devices for armored personnel carrier guns from even being discussed in the council, it said.

Spiegel said the sights were made by a unit of Airbus. A spokesman for Airbus said: “We have no information about any government decision. We hope however for a swift and positive decision.”

And TheLocal.de protests:

Thousands protest at Erdogan German rally

Turkish Premier Recep Tayyip Erdogan visited Germany on Saturday, splitting the large Turkish community between passionate street protesters and conservative supporters flocking to what was widely seen as a campaign speech.

Erdogan is expected to run for the presidency in August, and Germany – with a Turkish community of three million, about half of them eligible voters – would be a strong constituency for the controversial leader.

Erdogan and his Islamic-rooted Justice and Development Party (AKP) have polarized Turks at home and abroad over what critics call his authoritarian style, a crackdown on civil liberties and corruption scandals under his rule.

On to Eastern Europe and epidemic apathy from New Europe:

Record abstention in Chech Republic reaches 80%, exit poll

  • Right wing TOP 09 leads with 18%

Right wing opposition party TOP 09 is taking the first place in the European Elections in the Czech Republic, according to exit polls. Czech news agency CTK calculates abstention to have reached record levels at around 80%

According to the exit poll done on behalf of the Dnes newspaper, TOP 09 gets 18% of the poll, while the ruling Social Democratic party (CSSD) follows with 17%.

Spain next, and significant symbolism from the Guardian:

Why Spain’s goal to leave racism behind could be decided by 56 villagers

  • A mayor’s quest to change his village’s name could help to alter attitudes in the country as a whole

At 4pm on Friday, it’s eerily quiet in this tiny village. The blinds on the stone houses are drawn and there’s not a person to be seen wandering the few streets that make up Castrillo Matajudíos.

It’s a sharp contrast to the noisy, relentless chatter about the place in the outside world. Ever since the mayor announced his intention to hold a referendum on changing its name, the spotlight has been on this Spanish village near the northern city of Burgos. Hundreds of media outlets around the world have shared its story. Thousands have taken to social media to opine on the name change. And come Sunday evening, when journalists are expected to outnumber residents at the announcement of the referendum result, millions around the world will hear about the outcome.

For 400 years, this place has borne the name of Castrillo Matajudíos, or Fort Kill the Jews in English. Starting at 9am on Sunday, the village’s 56 residents will have the chance to decide whether the time has come to change the name to Castrillo Mota de Judíos, or Hill of Jews. “We had no idea that this would be something that would gain worldwide attention,” said Lorenzo Rodríguez Pérez, mayor of Castrillo Matajudíos.

After the jump, mixed Latin American signals, That turmoil, serious Chinese economic uncertainty, Japanese Olympic fraudsters, the tragic loss of play, pre-cooked chickens, and fears of another Fukushimapocalypse Now!. . . Continue reading

Headlines: Pols, cons, econs, lies, and more


Today’s tales from the realms of politics, eocnomics, and the environment begins with one of the reasons a cynic might believe it’s game over. From United Press International:

House bans Pentagon from preparing for climate change

  • Representatives: Amendment “is science denial at its worst and it fails our moral obligation to our children and grandchildren.”

The Republican-controlled House of Representatives voted mostly along party lines Thursday to approve an amendment to the $600 billion National Defense Authorization Act which prohibits the Pentagon from using any of its budget to address climate change and specifically instructs the Department of Defense to ignore the latest scientific reports on the threats posed by global warming.

The amendment, sponsored by Rep. David McKinley, a Republican whose home state of West Virginia’s economy is heavily leveraged in coal mining, reads:

None of the funds authorized to be appropriated or otherwise made available by this Act may be used to implement the U.S. Global Change Research Program National Climate Assessment, the Intergovernmental Panel on Climate Change’s Fifth Assessment Report, the United Nation’s Agenda 21 sustainable development plan, or the May 2013 Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order.

The data the amendment is forcing the Pentagon to ignore are the most recent and comprehensive reports on the dangers the United States faces as a consequence of climate change.

Another reason, from CNBC:

25% of Americans saving $0 for retirement

  • Retirement savings for about a quarter of Americans amounts to … $0.

One in every 4 Americans is not saving for retirement at all, either because they are not thinking about it, do not really know how or, worse, do not feel they can afford to, according to a report by Country Financial.

Americans ages 18-29, often called “millennials,” are among the worst when it comes to saving for retirement, the firm said. Nearly a third—32 percent—aren’t saving at all for their “golden years.”

Bloomberg News excludes:

No Recovery for Workers in the Middle

  • Whether it’s the back seat of a subcompact car or the U.S. labor market, the middle can be an uncomfortable spot.

Highly educated Americans have been enjoying the recovery for quite a while. And low-skilled Americans may finally be recovering some of their lost ground, Bloomberg News reports. The jobless rate for workers with a high school education or less is down about one percentage point since December, for example.

Left out are so-called “middle skill” workers, according to a new analysis [PDF] from the Federal Reserve Bank of New York. The worse-than-mediocre prospects for these average workers repeats a four-decade trend. Recessions destroy a disproportionate number of middle-income jobs, like those held by secretaries and machine operators, that can be easily outsourced or automated. When the economy recovers, there’s demand for jobs at the top, like doctors and tech workers, and at the bottom, like restaurant workers and home health aides. But most of the jobs in the middle are gone forever.

From Reuters, you gotta beef with that?:

USDA warns of sticker shock on U.S. beef as grilling season starts

The Department of Agriculture has warned of sticker shock facing home chefs on the eve of the Memorial Day holiday weekend, the unofficial start of the U.S. summer grilling season.

The agency said conditions in California could have “large and lasting effects on U.S. fruit, vegetable, dairy and egg prices,” as the most populous U.S. state struggles through what officials are calling a catastrophic drought.

The consumer price index (CPI) for U.S. beef and veal is up almost 10 percent so far in 2014, reflecting the fastest increase in retail beef prices since the end of 2003. Prices, even after adjusting for inflation, are at record highs.

China Daily hustles:

US hedge fund raises money from wealthy Chinese to invest abroad

In a milestone for the global hedge fund industry, US-based Citadel LLC has become the first global fund to raise money from wealthy Chinese individuals for investment abroad.

Chicago-based Citadel was one of six foreign hedge funds approved in September by China’s foreign-exchange regulator to each raise $50 million in yuan under the trial Qualified Domestic Limited Partner (QDLP) Program that allows high net worth Chinese to invest abroad via foreign hedge funds.

The company founded by billionaire Ken Griffin won regulatory approval for currency exchange on March 26, meaning it can now convert the yuan to US dollars for investing, according to a statement Wednesday from the Shanghai government’s information office.

China Daily again, with a visitor en route:

2.1m Chinese to visit US this year

An estimated 1.8 million Chinese tourists visited the US in 2013, and that number is expected to grow by 21 percent in to 2.1 million this year.

And US President Barack Obama has signaled that he’s going do what he can to increase not only the number of Chinese visitors, but all foreign tourists.

On Thursday, Obama signed a presidential memorandum giving secretaries at the Homeland Security and Commerce departments four months to come up with a plan to streamline the entry process for foreign visitors to reduce wait times.

A central bankster warning from Reuters:

Central banks must be on guard against currency wars, says ECB’s Coeure

Central banks need to cooperate to avoid a currency war, European Central Bank policymaker Benoit Coeure said on Friday, and the ECB should take account of the euro’s exchange rate in its monetary policy deliberations.

Speaking in Paris, Coeure also said that cutting the ECB’s deposit rate into negative territory was a policy option for the bank but would not be an exchange rate policy.

In a speech on “Currency wars and the Future of the International Monetary System”, Coeure asked whether, from the ECB’s perspective, central banks should take account of exchange rates in monetary policy; whether there is a currency war now; and whether international cooperation is needed in this regard.

Trust us, they say. Via EUbusiness:

Atlantic trade talks: US, EU seek to calm food worries

US and EU officials tried Friday to calm fears that an ambitious transatlantic free trade pact would not erode food safety rules.

Closing out five days of talks to advance the proposed Transatlantic Trade and Investment Partnership (TTIP), negotiators stressed that any deal would not force Europeans to accept US foods already ruled unsafe in the European Union.

“We cannot envisage… changing our food safety law as a result of the trade negotiations,” EU negotiator Ignacio Garcia Bercero said at a press conference in Washington.

“There’s no intention of forcing the Europeans to eat anything that Europeans don’t want to eat — that’s not what this agreement is about,” said his US counterpart, Dan Mullaney.

From EUbusiness, sure, right:

Germany’s Schaeuble denies austerity sparked populist backlash

German Finance Minister Wolfgang Schaeuble denied in an interview Friday that the rise of eurosceptics expected in weekend elections was due to austerity policies championed by Berlin.

He was asked by The Wall Street Journal whether anticipated gains by populist and anti-EU parties in the European Parliament vote until Sunday would be the price to pay for years of belt-tightening.

“Some will interpret it that way,” Schaeuble replied. “I think that’s wrong. You can see that our policy to stabilise the eurozone was successful.”

On to Britain and the right rising from BBC News:

Nigel Farage: UKIP to be serious players at general election

UKIP leader Nigel Farage has said his party will be “serious players” at the 2015 general election after it made gains in council polls across England.

Mr Farage said the “UKIP fox is in the Westminster hen house” after it gained more than 150 council seats.

The BBC’s projected national share of the vote suggests UKIP would have scored 17% in a Britain-wide election. Labour would have got 31% of the vote, ahead of Conservatives on 29% with the Liberal Democrats on 13%.

More from the Independent:

Local election results 2014: Nigel Farage hails Ukip’s ‘political earthquake’ and vows more to come

The three main political parties were last night assessing the damage from local elections in which they were all hit by the “political earthquake” that Nigel Farage’s Ukip promised and delivered.

Mr Farage predicted that his party’s sweeping gains outside London in Thursday’s council elections in England will be matched by coming first when the results of the European Parliament poll are declared on Sunday night.

The Conservatives, Labour and the Liberal Democrats all put their best gloss on yesterday’s town hall results. But behind the scenes, they were frantically calculating the impact that the new “four-party” political landscape would have on next year’s general election.

The Guardian recommends, righteously:

Jail fraudsters for longer, judges told

  • Guidelines from Sentencing Council instruct judiciary to make harm to victims a central factor in deciding on custody

Longer prison sentences for frauds that target the vulnerable and fresh sanctions against money-laundering are recommended in new judges’ guidelines issued by the Sentencing Council.

The impact of fraud on victims should be a central feature when judges come to consider the level of punishment imposed on convicted fraudsters, the guidance explains. Previous guidelines for many fraud offences referred to the harm done to victims merely as an aggravating factor.

Some of the recommendations significantly raise the starting point in terms of sentence length. The previous range for offences involving more than £500,000, for example, was four to seven years’ custody with a starting point of five years. The range in the new guideline is five to eight years with a starting point of seven.

The London Telegraph scents a bubbly deflation:

London’s property boom is losing its fizz

  • Even the super-rich are baulking at rising prices in the capital and would-be buyers are wary of a rise in interest rates

The Duke of Westminster’s Grosvenor Estate, that most canny of residential property owners, recently took the opportunity to offload hundreds of millions of pounds’ worth of property in Mayfair and Belgravia, so silly had prices become. And it is not just the playgrounds of hedge fund bosses and Russian oligarchs that are feeling the chill. Long-favoured spill-over districts for those no longer able to afford Chelsea and South Kensington are also experiencing something of a hiatus. Properties aren’t selling, and those that do are frequently failing to achieve asking prices. “The market has come right off,” says one insider with his nose to the ground.

Viewed in this light, the imminent stock market flotation of Zoopla, the online property website, for some ridiculous sum of money may be something of a last hurrah, like the sky-high price put on the estate agent Foxtons back in 2008.

From the Guardian, a fracking letdown:

No shale gas potential in Weald basin, concludes British Geological Survey

  • Ministers deny hyping UK potential after BGS says only a fraction of Weald oil reserves is recoverable

Government hopes that Britain can emulate the US by starting a shale-gas revolution have been knocked back after a long-awaited report unexpectedly concluded there was no potential in fracking for gas in the Weald region of southern England.

Michael Fallon, the energy minister, insisted he was neither “disappointed nor happy” at the findings from the British Geological Survey and denied the government had hyped the potential for extracting shale gas in Britain.

He preferred to focus on more positive BGS findings that there could be 4.4bn barrels of oil in the shale rocks of the area, which stretches from Salisbury to Tunbridge Wells – although in practice recoverable reserves are likely to be a fraction of this.

More from the Independent:

No gas found in the Weald basin: Does this spell the end of the Government’s dream of a fracking revolution?

The Government’s dream of kickstarting a fracking revolution has suffered a major setback after a survey of one of the UK’s great shale gas hopes found no evidence of gas in the area.

And while the same survey – of the Weald basin, stretching from Wiltshire to Kent – did find an estimated 4.4 billion barrels of oil, the scientist who oversaw the project admitted it would be so difficult to extract that the basin would be unlikely to yield even 0.5 per cent of the oil so far extracted from the North Sea.

Robert Gatliff, director of energy and marine geoscience at the British Geological Survey, which produced the report, said: “It’s not a huge bonanza. But we have to see what happens.” He added: “It is going to be a challenge for the industry to get it out.”

By way of stunning contrast, the same basic story refracted through the lens of the stalwart conservative London Telegraph:

Fracking in Tory heartlands ‘in national interest’, says Michael Fallon as report reveals 4.4bn barrels of oil

  • Energy minister denies disappointment as experts say tiny fraction of oil can be recovered and will not lead to “huge bonanza”

Fracking should take place in Tory heartlands of south-east England “in the national interest”, energy minister Michael Fallon has said, despite expert warnings that there was not enough oil in the region to spark a “huge bonanza”.

A British Geological Survey study of the “Weald” basin revealed that 4.4bn barrels of shale oil was likely to lie in the area, primarily beneath Surrey, Sussex and Kent.

But the BGS said that only a small fraction of the oil – potentially 5pc, the equivalent of less than six months’ UK oil demand – was likely to be recoverable through fracking.

Mr Fallon insisted that fracking must go ahead in the area, despite it being largely covered by the South Downs National Park and by the Surrey Hills and High Weald Areas of Outstanding Natural Beauty – areas in which some Tory MPs have already suggested the drilling should not take place.

On to Norway and a rejection from TheLocal.no:

Norway scuppers China tycoon’s Arctic plan

The Norwegian government has leapt in to buy a huge swathe of Arctic land on the Svalbard archipelago a week after one of China’s richest property tycoons announced he might buy it to build a resort.

The land, a 216 square-kilometre estate with its own mountain and large coal reserves, had been put up for sale by the industrialist and farmer Henning Horn, and his sisters Elin and Kari Horn.

“The government has decided to work for a solution involving a state takeover Austre Adventfjord,” trade minister Monica Maeland said in a statement released on Thursday. “Through public ownership and Norwegian law, we have the best starting point for managing Svalbard for the common good.

Germany next, and a rare exception at a time other countries are doing the opposite, via TheLocal.de:

Ageing Germany lowers retirement age

German lawmakers approved on Friday a major pensions overhaul, criticised by many, including within Chancellor Angela Merkel’s coalition, as making little economic sense in a rapidly ageing country.

The new rules will allow some workers to retire at the age of 63, while the norm of 67 is being progressively phased in for workers in Europe’s top economy after a 2007 change.

Together with an improvement in pensions for mothers whose children were born before 1992, the reforms are set to cost Merkel’s left-right “grand coalition” €60 billion up to 2020.

From Deutsche Welle, diplomatic phrasing:

German business confidence takes a breather

  • Confidence among German business leaders has dropped slightly. A closely watched monthly poll by a leading economic think tank revealed executives expected business prospects to worsen later in the year

The Munich-based Ifo economic research institute reported Friday that its benchmark index gauging business confidence among top executives across the nation fell to 110.4 points in May, down from 111.2 points in the previous month.

The latest poll among some 7,000 managers indicated that on average, compared with last month, the executives polled consider the current business environment to be less favorable, and are less optimistic about prospects for the next six months.

In contrast, analysts polled by Reuters penciled in a less pronounced drop in the confidence barometer.

Süddeutsche Zeitung gets behind the wheel:

What’s Driving Gulf Cash To European Holdings

Once upon a time, buying an expensive German car was enough to make a rich sheikh happy. Lately it seems a car doesn’t quite cut it, though a sizeable stake in an entire German car company may do nicely, thank you.

Four years ago, for example, at a Volkswagen general assembly, a man was sitting up on the stage who didn’t look like the others there from the VW family dynasty. The man’s name was Hussain Ali Al-Abdulla, and he was a board member of the Qatar Investment Authority (QIA) that owns 17% of VW after acquiring most of Porsche’s share options.

Seventeen percent of the common stock of one of the world’s largest automakers is a great deal. But since the Porsche and Piëch families (via Porsche Holding) own over half of VW stocks and the state of Lower Saxony holds a further 20%, this 17% gives the QIA a strategic right to make its voice heard quite clearly — if not direct power.

France next, and an austerian rebuff from TheLocal.fr:

French military top brass threaten to quit over cuts

  • The battle over further cuts to France’s military budget prompted dire warnings from the country’s defence minister and a threat from the heads of the armed forces to resign

France’s defence minister has warned that any further cuts in the military budget would badly hamper operations amid reports that the top brass would quit if there was further belt-tightening.

French President François Hollande will take decisions on the issue in the coming weeks, his entourage said on Friday, following Defence Minister Jean-Yves Le Drian’s letter to him. The warning comes at a time when France has sent troops to two of its former colonies in Africa, Mali and the Central African Republic, where there has been widespread fighting following coups.

If there are more cuts, “the army will become under-equipped and will not be able to undertake new operations,” said Le Drian.

And from EurActiv, in your heart you know they’re right, far right:

Marine Le Pen and Golden Dawn ‘flirting’

A post EU-election alliance between the French far-right National Front and the Greek neo-Nazi party Golden Dawn is not entirely ruled out. EurActiv Greece reports.

Officially, Marine Le Pen has sought to distance the National Front from Golden Dawn and other parties it sees as being too extremist.

But the political balances in the next European Parliament and the openly ambiguous stance of Golden Dawn make an alliance still look possible.

Austria next, and the usual accumulation from TheLocal.at:

Austrian millionaires richer than ever before

  • The assets of Austria’s millionaires grew in 2013 by seven percent, to €262 billion, making them richer than ever before

Austria’s millionaires could pay off the country’s entire debt in one shot, and still have another €20 billion left over, according to a report by the Liechtenstein investment company Valluga.

It noted that the gap between rich and poor is widening in Austria.

A total of 4,600 Austrians became millionaires last year. This means that 82,300 people now have financial assets of more than €1 million, not including owner-occupied real estate.

Switzerland next and sounds of another bubble popping from TheLocal.ch:

Property prices plunge in Geneva region: report

After rising steadily for five years, home prices tumbled by an average of more than six percent in the city of Geneva during the first quarter of this year, compared to the same period in 2013.

That’s the estimate from UBS and real estate consultants Wüest & Partner for average prices of condominiums and villas, according to a report from the Tribune de Genève published on Thursday.

The estimate shows weaker prices across the Lake Geneva region, where an average drop of 2.4 percent was seen, and a slowdown in certain other parts of Switzerland.

Average prices were down by four percent in Lausanne and lower by about 1.5 percent in Winterthur in the canton of Zurich.

On to Spain, and a bankster benediction from New Europe:

S&P raises Spain’s credit rating a notch, cites better economic prospects

Standard & Poor’s rating agency has upgraded Spain’s sovereign credit grade a notch, the third agency to do so in recent months and a further sign the country is turning the corner after five years of economic turmoil.

The agency raised the grade to BBB from BBB-, citing improved economic prospects and praising the conservative government’s structural and labor reforms since 2010.

Two other agencies, Moody’s and Fitch, have also upgraded Spain this year.

El País delivers the grim working class reality:

One in five Spanish job seekers has not worked in three years

  • Long-term unemployment rose 22% last year, to 1.275 million
  • Experts warn problem will be lasting legacy of the economic crisis

Six years into a profound jobs crisis, and the full effects of long-term unemployment are beginning to emerge. Figures from the latest Active Population Survey show that 60% of Spain’s 6 million unemployed have not worked in a year. What’s worse is that among this group, the proportion of people who have been without work for three years or more is growing, and now stands at one out of every five job seekers, according to data published on Friday by the National Statistics Institute (INE).

The Active Population Survey shows that last year there was an average of 1,275,700 job seekers who, having been active previously, had been unable to return to the job market in at least three years. This represents a rise in long-term unemployment of 234,200 people compared with 2012, an increase of 22%.

Admittedly, the pace of the increase has fallen off in the last two years, when long-term unemployment was rising at a rate of 40% a year. But it remains way above the general unemployment rate, which has begun to fall in the last two quarters, as a result of the marked decline in the active population. In 2007 the proportion of people who had gone three years without working was just 13% of all job seekers, while in 2013 that figure reached 21%.

From TheLocal.es, that good ol’ hard times intolerance:

Spanish mayor ‘sorry’ for ‘anti-immigrant’ outburst

A Spanish mayor has apologised after being accused of racism by Romanian immigrants for a foul-mouthed tirade against thieves.

Mayor Josu Bergara was recorded in a meeting last year boasting that he had made sure “the scum no longer come” to his northern town of Sestao.

Five Romanian families lodged a complaint against him in court, accusing him of illegally refusing to register them as residents in the Basque town. They submitted a video of his outburst as evidence of racism to support their case, said the campaign group SOS Racismo, which aided the families.

Italy next, and last minute political vituperation from Corriere della Sera:

Grillo and Renzi Clash as Berlusconi Speaks in Rome

  • M5S leader claims: “Berlinguer is on our side”. Premier replies: “Wash your mouth out”. Berlusconi appeals for moderate vote

Matteo Renzi and Silvio Berlusconi took to the hustings in Rome, the former in Piazza del Popolo and the latter at the Palazzo dei Congressi in the EUR district. Meanwhile Beppe Grillo was in Milan’s Piazza del Duomo. The prime minister and the Five Star MoVement (M5S) leader swapped barbs over Enrico Berlinguer. “He’s on our side”, thundered former stand-up comic Grillo. “Wash your mouth out”, was the PM’s reply.

With the race to the polls entering the final straight, the three largest parties took to the streets at almost the same time on Thursday evening for their last rallies before the campaign officially closes. Earlier in the day, Mr Renzi said on Radio1′s Radio anch’io programme: “The risk is that someone might seek to block the reforms. I think that Italy can be a guide for Europe and has an amazing future. If they don’t let me make the reforms, then yes, my project will have failed and I’ll pack my bags”. Speaking in Piazza del Popolo, Mr Renzi recalled that “a united Europe started here” before launching his attack on the M5S leader: “Grillo mentioned Berlinguer in Florence. People who aren’t fit to speak names like that shouldn’t be mentioning them. You can’t say ‘I am beyond Hitler’ and ‘Berlinguer’ in the same breath. Wash your mouth out. Wash your mouth out. Wash your mouth out”.

“I solemnly pledge that all pensioners will get a €1,000 monthly pension, to be on the cabinet’s agenda for its first meetings”. Silvio Berlusconi made the promise at his EUR rally, where he added that a similar measure would be taken “in favour of housewives”. Mr Berlusconi said he was disappointed by Mr Renzi (“He’s meant more spending and more taxes”) and reaffirmed that Mr Grillo was taking advantage of “ordinary people’s desperation”.

From TheLocal.it, political realism?:

Red light district wins Rome mayor’s support

Rome Mayor Ignazio Marino has said he is in favour of having a red light district in the Italian capital, following moves in Milan to see the sex trade regulated.

Marino said on Thursday he is “in favour of zones where prostitution is allowed and zones where it isn’t,” although added that as mayor he did not have the power to open a red light district in Rome.

“This overflow of prostitution doesn’t only damage the decorum of the city, but it is a great cause of public annoyance in some neighbourhoods,” he was quoted in Corriere della Sera as saying.

His rethink on regulation of the sex trade follows calls by Matteo Salvini, a Northern League (Lega Nord) politician in Milan, to open a red light district in Italy’s financial capital.

And fueling around with TheLocal.it:

ENI clinches Gazprom deal to cut gas prices

Italian energy major ENI on Friday said it had signed a deal with Russian gas giant Gazprom that will cut gas import prices as part of a revision of its contract.

“The agreement involves a reduction in supply prices and an important change in the price indexation to fully align it with the market,” ENI said in a statement.

It said the deal, which was signed in Russia by Gazprom chief executive Alexei Miller and ENI boss Claudio Descalzi, would apply retroactively from the start of 2014.

Aftter the jump, the latest from Greece [including accelerating political fireworks], the latest from the Ukraine, Libyan vexation, Venezuelan vituperation, Thai coup grip intensification, Aussie educational austerity, Chinese economic uncertain and corruption woes, Sony tries again, Japanese financial plans, environmental woes, and Fukushimapocalypse Now!. . . Continue reading

Charts of the day: More U.S. polarization defined


Stunning evidence of the radical disparities afflicting the U.S. workforce are two chartrs from a new report [PDF] from the Federal Reserve Bank of New York, “Job Polarization and Rising Inequality in the Nation and in the New York-Northern New Jersey Region”:

First up, evidence of polarization in the form of new jobs over a four-decade span:

Job Polarization and Rising Inequality
And a parallel devlopment in the form of polarizing salary differentials:

Job Polarization and Rising Inequality
From the bank’s webpage leading to the PDF:

Since the 1980s, employment opportunities in both the UnitedStates and the NewYork–northern NewJersey region have become increasingly polarized. While technological advances and globalization have created new jobs for workers at the high end of the skill spectrum and largely spared the service jobs of workers at the low end, these forces have displaced many jobs involving routine tasks—traditionally the sphere of middle-skill workers. Moreover, these same forces have pushed up wages for high-skill workers disproportionately, contributing to increased wage inequality. The rise in inequality has been especially sharp in downstate NewYork and northern New Jersey, where the wage gap is now markedly larger than in the nation.

Charts of the day: Concentration of wealth


Two different graphic depictions of wealth concentration serve to illustrate the central problem — along with exponentially expanding global debt — confronting the world today.

First, from theunderstatement, a look at concentration of wealth in the United States:

BLOG Wealtbh bar

Next, from Elizabeth Warren’s blog, a very effective graphic on global wealth distribution:

BLOG Wealth warren

Headlines: EcoWarnings, eCons, lies, more


Today’s headlines from the realms of politics, economics, and the environment is chock full of nuts, especially the sort whose greed imperils us all.

The Christian Science Monitor gives us the first of several headlines with warnings about the future of the Golden State, starting with an alarm about one the state’s most populous conservative county:

As California wildfire season looms, one county stands out as unprepared

San Diego stands out as “easily one of the least prepared [counties] in the entire country,” even though it is one of the most fire-prone regions of the state, says Richard Halsey, president of the California Chaparral Institute in Escondido.

Some blame county taxpayers for refusing to add fees that would boost local firefighting efforts. Others say political leaders have not provided taxpayers with a plan worth supporting.

With high temperatures and drought prevailing in California, the issue carries perhaps even more urgency than usual this summer. If new fires break out in San Diego, other areas of the state – and perhaps the country – might have to step in.

“San Diego County’s astonishing lack of professional firefighting units … means they are off-loading their responsibilities on other taxpayers across the state who pay to protect them and to protect them in landscapes that are fire-prone, fire-created,” says Char Miller, professor of environmental analysis at Pomona College in Claremont, Calif.

From Business Insider, fracking dreams evaporate, casting dark shadows on the dreams of California’s born again neoliberal chief executive:

California Is In An Extremely Awkward Position Now That The Government Says Most Of Its Shale Oil Is Unrecoverable

There now appears to be just 600 million barrels of recoverable tight oil in the state’s vast Monterey shale play — a downward revision of 96% from the agency’s 2011 estimate.

The state had pinned its hopes on a March 2013 USC study that argued tapping the Monterey could create up to 2.8 million jobs by 2020 and add up to $25 billion to state and local tax revenue. “Californians drive 332 billion, that’s billion miles a year, fed almost entirely by oil products, so we have got to start hammering at the demand, as well as the sources of fossil fuel,” California Governor Jerry Brown told CNN Sunday.

In September 2013, Brown — often labeled as having a thumb as green as Shrek’s — signed into law a bill that allowed the small-scale fracking that already occurs in to continue, with a view toward one day tapping what was thought to be Monterey’s vast and accessible deposits.

Brown’s office had no comment Wednesday.

From the San Francisco Chronicle, more signs of tough times ahead:

As Central Valley fog disappears, fruit, nut crops decline

The soupy thick tule fog that regularly blanketed the Central Valley and terrorized unsuspecting motorists during the winter has been slowly disappearing over the past three decades, a UC Berkeley study has found.

The blinding mists may not be missed by those who remember white-knuckle drives in zero visibility and regular multiple-car pileups, but the fog dearth is bad news for farmers, according to a study published this month in the journal Geophysical Research Letters.

“It is jeopardizing fruit growing in California,” said Dennis Baldocchi, a biometeorologist at UC Berkeley and lead author of the study. “We’re getting much lower yields.”

From the Oakland Tribune, standing up to Obama’s anti-immigrant agenda:

East Bay sheriffs to release immigrants held for feds

Joining a national trend of resisting the Obama administration’s deportation dragnet, the sheriffs of Alameda and Contra Costa counties said they are immediately releasing all inmates whose sole reason for being held is their immigration status.

U.S. Immigration and Customs Enforcement makes about 1,000 requests to Alameda County’s Santa Rita Jail each year to hand over immigrants arrested on other charges and suspected of being in the country illegally, but “now we won’t be honoring any of them,” Sheriff Greg Ahern said in an interview Wednesday. “We’re not going to be honoring the ICE holds unless they’re backed by the order of a judge.”

Contra Costa County Sheriff David Livingston said Wednesday he implemented an identical order last week. San Mateo County Sheriff Greg Munks is contemplating a similar policy but plans to allow for case-by-case exceptions for immigrants who “pose significant public safety risks.”

From the Los Angeles Times, a legal revolt:

Counties sue narcotics makers, alleging ‘campaign of deception’

Two California counties sued five of the world’s largest narcotics manufacturers on Wednesday, accusing the companies of causing the nation’s prescription drug epidemic by waging a “campaign of deception” aimed at boosting sales of potent painkillers such as OxyContin.

Officials from Orange and Santa Clara counties — both hit hard by overdose deaths, emergency room visits and escalating medical costs associated with prescription narcotics — contend the drug makers violated California laws against false advertising, unfair business practices and creating a public nuisance.

In sweeping language reminiscent of the legal attack against the tobacco industry, the lawsuit alleges the drug companies have reaped blockbuster profits by manipulating doctors into believing the benefits of narcotic painkillers outweighed the risks, despite “a wealth of scientific evidence to the contrary.” The effort “opened the floodgates” for such drugs and “the result has been catastrophic,” the lawsuit contends.

BBC News hauls out the chopper:

Hewlett-Packard to cut up to 16,000 more jobs

Technology giant Hewlett-Packard (HP) announced an 18% rise in profits to $1.3bn for the second quarter in statement that was accidently released before US stock markets closed.

But the firm said that despite rising profits, it plans to lay off an additional 11,000 to 16,000 workers. HP had previously announced it would cut 34,000 jobs as part of a restructuring announced in 2012.

Shares in HP fell after the early release of the news.

Hypocrisy between the buns, via the Guardian:

McDonald’s CEO insists fast-food giant pays ‘fair wages’ as protesters rally

  • Demonstrators stage second day of protest as chief executive Don Thompson sees off shareholder vote on $9.5m pay package

McDonald’s offers “real careers” and “competitive wages”, CEO Don Thompson told shareholders on Thursday, as hundreds of protesters chanted for better pay outside the fast-food giant’s annual meeting.

As demonstrators staged a second day of protests against the company’s wage scale outside the company’s suburban Chicago headquarters, Thompson told shareholders: “We believe we pay fair and competitive wages.”

“I know we have people outside,” said Thompson. “I think that McDonald’s provides more opportunity than any other company … We continue to believe that we pay fair and competitive wages,” he said.

A thoroughly tamed electorate, via EUbusiness:

Muted US opposition to Atlantic trade treaty

Europeans have met US-EU negotiations for an ambitious transatlantic free trade zone with a wave of open hostility, but in the United States, the opposition has been muted.

Only a handful of opponents could be seen Wednesday as officials from both sides met this week for the fifth round of negotiations in Arlington, Virginia, just outside Washington.

“The more we learn about this agreement the more we understand why the US and the EU are holding its contents so close to the vest,” said Ilana Solomon of the environmental group Sierra Club.

Like in Europe, fears have mounted among US activists over the broad scope of liberalization under the proposed Transatlantic Trade and Investment Partnership (TTIP), which will cover rules on investment, trade, agriculture, health and the environment.

The worries, though, have not carried far outside a small circle of civil society activists, even though the talks have been going on for nearly a year.

From Inside Criminal Justice, something we could’ve told ‘em, having done a major bookie investigation years ago:

Study: Organized Crime Launders Billions Through Bets

Organized crime operations use sports betting as a tool for laundering $140 billion worldwide each year, according to a new study by Paris’ Pantheon-Sorbonne University and the Qatar-based International Center for Sport Security.

The review of global sports gambling scandals during the last three years found that soccer is by far the most frequently corrupted sport.

As the Internet spread during the last two decades, the gambling industry has boomed, according to the report, and regulatory agencies have been unable to keep pace.

From ANSAmed, neoliberals greasing skids for the race to the bottom:

UAE: the World Free Zones Organization (WFZO) is born

  • New 14-member body to oversee free-trade zones around the globe

The brand-new World Free Zones Organization (WFZO), a multinational body with 14 founding member countries, was inaugurated in Dubai ceremony at the weekend.

Representing free-trade zones in Africa, China, Europe, Latin America, the United Arab Emirates, and the United States, the WFZO aims to standardize their business methods and analytical parameters, making them available to members, governments, businesses, and analysts.

‘’It is a platform for debating issues in common and for learning from mutual experience’‘, explained WFZO Chairman Mohammed al-Zarooni.

On to Europe, starting with election news from EUobserver:

EU elections under way in Netherlands and UK

The 2014 EU elections got under way in The Netherlands and in the UK on Thursday (22 May), with Dutch voters starting at 7.30am local time and British voters at 8am British time.

The results will not be available until Sunday night – to be published at the same moment as pan-EU numbers, so that the outcome in early member states does not influence voting in latecomers.

But Dutch exit polls are expected already at 9pm on Thursday evening.

From the London Telegraph, allegations of suicide by currency, via the European Monetary Union [EMU]:

Europe’s centre crumbles as Socialists immolate themselves on altar of EMU

  • Francois Hollande must be willing to rock the European Project to its foundations, and even to risk a rupture of the euro. This he cannot bring himself to do

By a horrible twist of fate, Europe’s political Left has become the enforcer of reactionary economic policies. The great socialist parties of the post-war era have been trapped by the corrosive dynamics of monetary union, apologists for mass unemployment and a 1930s deflationary regime that subtly favour the interests of elites.

One by one, they are paying the price. The Dutch Labour Party that fathered the “Polder Model” and ran Holland for half a century has lost its bastions of Amsterdam, Rotterdam and Utrecht, its support dwindling to 10pc as it meekly ratifies austerity policies that have led to debt deflation and left 25pc of mortgages in negative equity.

Contractionary policies are poisonous for countries leveraged to the hilt. Dutch household debt has risen from 230pc to 250pc of disposable income since 2008, while British debt has fallen from 151pc to 133pc over the same period. This calamitous development in the Netherlands is almost entirely result of the EMU policy structure, yet the Dutch Labour Party has no coherent critique because its pro-EU reflexes compel near-silence.

CNNMoney casts a different slant:

Europe’s own ‘tea party’ risk

Europe has enjoyed a period of calm after years of crisis, but a predicted big protest vote in regional elections this week could shake markets out of their complacency.

Polls open Thursday for voters to elect members of the European Parliament, representing 500 million citizens. They’re expected to back protest parties of right and left in greater numbers than ever before.

A backlash against austerity, unemployment, immigration and loss of national power to European institutions could push anti-EU parties to win about 25% of the 751 seats. In some of the 28 countries, they could even secure the biggest share of the vote.

While that won’t derail the region’s recovery in the near term, it could store up future trouble by destabilizing pro-EU governments in some countries and weakening the resolve of others to stick to painful economic reforms.

On to Britain and some fracktastic news from the London Telegraph:

Fracking planned for Tory heartlands as report reveals billions of barrels of shale oil in southern England

  • Report to show vast potential for shale oil in the South as ministers unveil planned law change to allow fracking under homes without owners’ permission

Vast areas of southern England will on Friday be identified by the Government as targets for fracking, with ministers also announcing that energy companies will be allowed to frack under homes without owners’ permission.

A British Geological Survey study of the South, spanning from Wiltshire to Kent and including the South Downs National Park, will be published, mapping out the likely location of billions of barrels of shale oil.

Ministers are also preparing to publish controversial plans to change the laws of trespass to give energy companies an automatic right to frack beneath homes and private land – even if owners object.

Norway next, and bad news for cetaceans from TheLocal.no:

Norway to ‘work harder’ to sell whale to Japan

Norway’s fishing minister has pledged to work harder to restart exports of whale meat to Japan, after one of the country’s leading chroniclers of the whaling industry warned that it could die out within ten years.

“We have Japan as a potential export country,” Elisabeth Aspaker told Norway’s NRK channel. “We must see if we can work harder to promote it.”

Frank A. Jenssen, a journalist and author who has written extensively on whaling, told NRK that the industry and the communities which depend on it were in crisis.

“At worst, if it does not become easier to sell whale meat, I fear that this tradition and industry will die out,” he told the television channel. “In about ten to 15 years, there may be no whalers left in Norway, and that would be a tragedy.”

Early Dutech electoral indications from euronews:

Wilders’ anti-EU party pushed to fourth place in Netherlands exit polls

Exit polls in the Netherlands indicate that the anti-EU Freedom Party (PVV) of Geert Wilders has come fourth in elections for the European Parliament.

Dutch public television reported that the party who had been leading opinion polls for months may have failed to secure second place, gaining around 12% of the vote trailing the Christian Democrats and the social-liberal D66 parties who were competing for the top spot.

Germany next, and creeping imperialism from New Europe:

German cabinet adopts new Africa strategy

  • In February, Germany’s parliament approved boosting the country’s troop presence in Mali

The German cabinet has adopted a new Africa strategy, showing willingness for a greater German involvement in Africa, German media N-TV reported on Wednesday.

In the new Africa policy, Germany’s ruling coalition government expressed willingness to help prevent armed conflicts on the continent at an early stage in the future.

In addition to training missions, which would help African countries solve crisis more independently, Germany said it was also ready to send more troops to Africa if necessary.

France next, and tough times for Franky the Fop from Al Jazeera English:

France’s left is through with Hollande

  • Angered by austerity and economic stagnation, fewer than one in five French approve of the Socialist president.

French civil servants’ salaries have not been reassessed since July 2010. The freeze, which began under the right-wing government of former president Nicolas Sarkozy, is now part of the left-wing government’s plan to cut public spending and boost economic growth.

According to the national statistics agency INSEE, the French economy stagnated in the first quarter of 2014, with zero growth between January and March. “It doesn’t matter,” said French Finance Minister Michel Sapin on Thursday. “The [growth] forecast by the IMF for France is one percent, so we’re dealing with figures that are perfectly reasonable goals.”

Sapin added that he was confident that the overall growth in 2014 would be “clearly above zero”, although admitted it “will not be enough”. With growth so weak and the unemployment rate and budget deficit so high, the government has no plans to increase the wages of civil servants in the near future.

French Prime Minister Manuel Valls said that without any clear sign of growth, the pay freeze will continue until 2017. “The efforts required must be fair and equitably distributed among all the French,” he said in a letter addressed to the unions on Tuesday.

Next, Deutsche Welle covers a comeback strategy from his predecessor:

France’s Sarkozy urges two-speed Europe and a different migration policy

  • Former French President Nicolas Sarkozy has called for big changes to EU structures, calling the idea of Eurozone economies’ equal rights a “myth”. He also lashed out at the EU’s current migration policies.

On Thursday, Nicolas Sarkozy weighed into the European Parliament election campaign by pressing for changes to the 28-member bloc’s structure.

The conservative former French leader, who is widely expected to seek re-election in 2017, argued for a profound overhaul of EU institutions in an editorial for the weekly news magazine Le Point.

He called the idea of all eurozone nations being of equal weight a “myth”, and proposed the creation of a large Franco-German economic zone at the heart of the euro area to reflect what he called a “two-speed Europe.”

From TheLocal.fr, out of sight, out of mind?:

French cops to bulldoze Calais migrant camps

Police in northern France plan to dismantle a series of improvised migrant camps, including one dubbed the “Syrian Camp”, after an outbreak of scabies. It’s part of the ongoing tension in the city of Calais where thousands of immigrants have massed with hopes of reaching the UK.

Social workers were outraged on Thursday following an announcement from the top police authority in Calais, in northern France, several migrant camps would be cleared from the town’s port by “next week”.

Following a meeting with humanitarian groups on Wednesday local Prefect Denis Robin told reporters: “I’m going to close three camps on public property at the port next week. It is out of the question that we encourage the setting up of a jungle.”

From the Guardian, a new supergrass:

Camorra mafia ‘super boss’ Antonio Iovine turns state witness

  • One of four bosses of Casalesi clan within Camorra mafia is collaborating with investigators in Naples, Italian media says

A so-called super boss of a powerful clan within the Camorra mafia has turned state witness and is collaborating with investigators in Naples, Italian media reported on Thursday.

Antonio Iovine, one of the four bosses of the infamous Casalesi clan, started answering the questions of anti-mafia prosecutors earlier this month, La Repubblica wrote. The Naples daily Il Mattino declared it “a historic choice”.

Aged 49, but known to all as o’ninno (the baby) for his youthful face and his rapid ascent of the Casalesi power structure, Iovine is thought to have effectively led the business side of the clan’s activities before his arrest in 2010 and subsequent jailing for life.

Reactions from the Independent:

Mobster turned informant Antonio Iovine sends shockwaves through Naples’ crime families

The decision by one of the Camorra’s most senior figures to turn informant has sent shockwaves through the Naples crime syndicate.

The jailed mobster, Antonio Iovine, dubbed the Camorra’s “economy minister”, is now spilling the secrets of the brutal mafia group, it was reported today. And not only clan members are risk; now that “the first real boss” of the crime group has decided to cooperate with the authorities, “an entire generation” of mafia associates risks being “swept away”, according to La Repubblica newspaper.

The Camorra’s accomplices are thought to include crooked politicians, civil servants and businessmen, who collude with its moneyspinning activities including illegal dumping, extortion, drug running and prostitution. Iovine was captured in November 2010 after 14 years on the run. But the first real breakthrough in getting the mafia boss to talk occurred within the past two weeks. With prosecutors Antonello Ardituro and Caesar Sirignano having applied careful pressure over a period of three years, Iovine finally cracked and began giving page after page of verbal evidence.

TheLocal.it calls for lighting up:

Rome mayor backs decriminalizing cannabis

Rome Mayor Ignazio Marino on Wednesday said he was in favour of decriminalizing cannabis, calling for a national and international reform on drug laws in order to fight organized crime.

The city mayor said he was “in favour of the possibility of the liberalization of cannabis for medical or personal use.”  He was speaking at the Eighth Annual Conference of the International Society for the Study of Drug Policy in Rome.

Beyond the capital he also advocated broader reform of drug laws both in Italy and abroad.

“Decriminalization of marijuana must be considered a starting point, because years of prohibition have brought no results in the prevention of a dramatic increase in drug use,” Marino was quoted in Il Messaggero as saying.

From ANSA.it, real GDP:

Economic value of prostitution in 2014 GDP accounts

  • Statistical agency to measure illegal drugs, cigarettes

The economic value of prostitution, illegal drug sales, and trafficking in contraband cigarettes and alcohol will all be measured by Italy’s national statistical agency Istat as it calculates the country’s 2014 gross domestic production (GDP), it announced Thursday.

Istat said that starting in September, its 2014 economic measurements will include those three areas of illegal activities, in line with methodology being applied in measuring national accounts within the European Union.

The move updates the previous system of national account measures implemented in 1995, Istat said in a news release. Eurostat, the EU’s statistical agency, has provided guidelines that will include an estimate of accounts for illegal activities including prostitution, contraband cigarettes and alcohol, and illegal drug trafficking.

From TheLocal.it, woes for Bunga Bunga Junior:

Prosecutors seek jail term for Berlusconi’s son

Prosecutors in Milan have asked for Silvio Berlusconi’s elder son, Pier Silvio, to be sentenced to three years and two months in jail for alleged tax fraud at the family’s Mediaset empire.

Prosecutors Fabio De Pasquale and Sergio Spadaro are also seeking a three year and two month jail term for Fedele Confalonieri, Mediaset’s chairman, for his alleged involvement in the financial wrongdoing that relates to the trading of TV rights at the company’s subsidiary, Mediatrade, the Italian edition of Huffington Post reported.

The men are accused of tax fraud amounting to millions of euros in 2003 and 2004, when the telemarketing unit was based in Milan.

Striking news from TheLocal.it:

Italy’s newsstands set to empty as strike hits

A national strike of printing press workers on Thursday, prompted by a row over pensions, will see newsstands across the country emptied of newspapers on Friday.

Ink ran dry at Italy’s printing presses on Thursday, as labour unions united to force newspapers to temporarily run out of print. As a result none of Italy’s daily newspapers, such as La Repubblica and La Stampa, will be published on Friday, Italian media reported.

According to unions the government has failed to protect industry workers who were left without a pension following reforms in 2012, the newspaper said

After the jump, the latest from Greece [including campaign news], Russian sanctions beneficiaries, more Brazilian pre-World Cup blues, Thai coup consolidation, more Chinese bubble warnings, Sony fine tunes, environmental disasters, and the latest from Fukushimapocalypose Now!. . . Continue reading

Quote of the day: Either reform or bloodshed


From David Cay Johnston, in an Elias Isquith interview in Salon:

I had done a trilogy on hidden aspects of the American economy, “Perfectly Legal,” which was about how the rich benefit from taxes, “Free Lunch,” about all the subsidies people didn’t know about that go to rich people and corporations, and “The Fine Print,” which was about restraint of trade and monopolies. And in speaking for the last 10 years around the country, one of the things I learned is that people didn’t understand that this isn’t just a function of numbers and whatnot; they didn’t understand there’s a whole structure that affects families, health, healthcare — which are different things — incarceration, opportunity, exposure to environmental hazards, wage theft and so, there was really a need here to give people a broad understanding of, well, “How did this come about, this incredible inequality that we didn’t have in this country until recent years?”

Piketty — whose work I relied on for years and who substantiates a lot of things that I’ve written with his research — argues that the concentration of wealth will just continue and continue and continue. As Herbert Stein, Richard Nixon’s chief economic adviser, famously said, a trend will only continue as long as it can. We will either, through peaceful, rational means, go back to a system that does not take from the many to give to the few in all these subtle ways, or we will end up like 18th century France. And if we end up in that awful condition, it will be the bloodiest thing the world has even seen. So I think it’s really important to get a handle on this inequality. After all, since the end of the Great Recession, one-third of all income increases in this country went to just 16,000 households, 95 percent of it went to the top 1 percent, and the bottom 90 percent’s incomes fell, and they fell by 15 percent. So we need to recognize that there is a very, very serious problem here that has to get addressed. But it won’t just go on forever because if you follow that to its logical absurdity, one person ends up with 90 percent of the wealth in the world. And that’s not going to happen.

Kochs wage war on Detroit’s pension-holders


The despicable duo are at it again, launching a campaign designed to reduced Motown’s city pensioners to abject poverty.

The story from The Young Turks:

The Koch Brothers Fix Detroit’s Problems By Destroying Pensions

Program notes:

“Americans for Prosperity, the conservative advocacy group supported by the Koch brothers, has launched an effort to torpedo a proposed settlement in the Detroit bankruptcy case, potentially complicating chances for completing the deal just as its prospects seemed to be improving.

The organization, formed to fight big government and spending, is contacting 90,000 conservatives in Michigan and encouraging them to rally against a plan to provide $195 million in state money to help settle Detroit pension holders’ claims in the case, a key element of the deal.” The Young Turks hosts John Iadarola (TYT University), Dave Rubin (The Rubin Report) and Jimmy Dore (The Jimmy Dore Show) break it down.