Category Archives: Health

Headlines of the day II: EconoEuroSinoFukuFuel


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

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

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

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

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

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

One response, via The Hill:

Senate rejects jobless benefits

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

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

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

Any excuse to gut environmental laws, via Salon:

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

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

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

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

CNBC shivers in anticipation:

Hedge funds bet on US gas shortage as cold boosts demand

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

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

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

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

From Al Jazeera America, Banksters Behaving Badly™:

Banks under investigation for alleged currency exchange rate-fixing

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

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

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

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

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

Profligacy from The Guardian:

National lab in California scolded over Lusitania project

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

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

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

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

NBC News greens the green:

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

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

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

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

Blowback from Channel NewsAsia Singapore:

India warns US of consequences on visa reform

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

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

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

Sensible advice from Salon:

Elizabeth Warren calls on Obama to nominate fewer corporate judges

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

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

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

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

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

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

Exclusive: How mainland millionaires overwhelmed Canada visa scheme

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

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

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

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

On to Europe, first with BBC News:

ECB rejects deflation fears as it holds rates at 0.25%

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

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

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

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

Another take from the London Telegraph:

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

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

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

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

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

The Guardian hasn’t recovered:

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

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

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

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

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

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

BBC News splits:

Divorce rate up ‘because of recession’, report says

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

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

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

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

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

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

Minister Dismisses Ministry Employee Requests For Independent Investigation

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

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

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

The uncuttest kind of all from TheLocal.no:

Norway politician wants jail for circumcisers

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

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

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

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

Danish austerity strikes again,, via the Copenhagen Post:

Parliament expected to end EU insurance coverage

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

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

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

Nexit news from DutchNews.nl:

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

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

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

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

EurActiv rebuts:

Dijsselbloem counters Wilders’ EU exit claim

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

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

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

Daimler enjoys record €9 billion profit

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

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

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

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

Europe Online declines:

German factory orders post surprise slump in December

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

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

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

TheLocal.de lights a fuse:

Court grants EU migrants German jobless benefits

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

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

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

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

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

French teachers to strike over August return

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

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

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

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

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

Immigration: ‘total chaos’ seen if curbs backed

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

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

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

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

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

Doctors shun life-saving abortion

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

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

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

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

thinkSPAIN charts the loss:

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

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

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

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

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

TheLocal.es has poor possibilities:

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

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

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

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

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

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

Spanish bankruptcies hit the roof in 2013

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

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

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

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

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

Surrogate births not recognised under Spanish law, rules Supreme Court

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

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

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

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

Rents in Italy soar as wages stagnate

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

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

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

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

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

The latest Bunga Bunga blowback from TheLocal.it:

Italian senate to join civil case against Berlusconi

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

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

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

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

Bonino defends German role in euro crisis

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

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

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

After the jump, the latest in the ongoing Greek disaster, Ukrainian warnings, drought and a protest victory in Latin America, Australian and Japanese tapering, Thai troubles, Chinese anxieties, Sony woes, a free-trade-for-dolphins ploy, U.S. and European GMO word wars, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoGrecoSinoFuku


Our compendium of headlines from the world of human economic and political actions and their impacts on our environment opens with a health alert from The Guardian:

Worldwide cancer cases expected to soar by 70% over next 20 years

  • New cancer cases expected to grow from 14m a year in 2012 to 25m, with biggest burden in low- and middle-income countries

Cancer cases worldwide are predicted to increase by 70% over the next two decades, from 14m in 2012 to 25m new cases a year, according to the World Health Organisation.

The latest World Cancer Report says it is implausible to think we can treat our way out of the disease and that the focus must now be on preventing new cases. Even the richest countries will struggle to cope with the spiralling costs of treatment and care for patients, and the lower income countries, where numbers are expected to be highest, are ill-equipped for the burden to come.

The incidence of cancer globally has increased in just four years from 12.7m in 2008 to 14.1m new cases in 2012, when there were 8.2m deaths. Over the next 20 years, it is expected to hit 25m a year – a 70% increase.

Closer to Casa esnl, the latest coverage of class war in Babylon by the Bay from USA TODAY:

SF residents caught in middle of tech hostilities

For the past month, protesters have confronted buses that transport employees from Google, Apple and Facebook to Silicon Valley. The flare-ups highlight the yawning gap between those benefiting from the enormous wealth generated by the tech boom and those left behind. Multimillion-dollar tax breaks for SF-based companies like Twitter have stoked rebellious tensions.

“We have a group which is mostly young and has not learned social norms or responsibility gaining wealth and power,” says Vivek Wadhwa, a Fellow at Stanford Law School. “This group has its own value system and lives in its own bubble. It is displacing the larger population of San Francisco.”

The city has had its neighborhood battles – hippies in the Haight in the 1960s, gays in the Castro in the ‘70s. But the latest gentrification clash is moving faster, making the current situation dicey.

The Verge Googles eyesore:

California orders Google to move floating barge from current construction site

The state of California has ordered Google to move its massive floating barge away from its current construction site in the San Francisco Bay. San Francisco Bay Conservation and Development Commission executive director Larry Goldzband said the four-story structure has drawn numerous complaints. “It needs to move,” Goldzband said. He also claims that Google never had the proper permits to start work on the project at Treasure Island. But today’s development may not spell any real trouble for Google — the company simply needs to relocate the barge to another Bay facility where construction is fully permitted. The news was first reported by the Associated Press.

Sightings of the barge led to rampant speculation about its purpose last year. Google eventually admitted ownership of the San Francisco barge, teasing that it hopes to explore using it as a space where “people can learn about new technology.” We reached out to the company for more details on how it plans to respond to this latest challenge. In a statement, a Google spokesperson told The Verge, “We just received the letter from the San Francisco Bay Conservation and Development Commission and we are reviewing it.”

From Bloomberg, the usual suspects operating in the usual way:

IBM Uses Dutch Tax Haven to Boost Profits as Sales Slide

International Business Machines Corp. (IBM) has reduced its tax rate to a two-decade low with help from a tax strategy that sends profits through a Dutch subsidiary.

The approach, which involves routing almost all sales in Europe, the Middle East, Africa, Asia and some of the Americas through the Netherlands unit, helped IBM as it gradually reduced its tax rate over 20 years at the same time pretax income quadrupled. Then last year, the rate slid to the lowest level since at least 1994, lifting earnings above analysts’ estimates.

IBM is aiming for $20 a share in adjusted earnings by 2015, up from $11.67 in 2010 — a goal made more difficult as the company posted seven straight quarters of declining revenue. To stay on target, IBM has bought back shares, sold assets, and fired and furloughed workers. A less prominent though vital role is played by its subsidiary in the Netherlands, one of the most important havens for multinational companies looking for ways to legally reduce their tax rates.

MarketWatch tanks anxiously:

U.S. stocks see worst selloff in several months

  • Manufacturers expand in January at slowest rate in eight months

The U.S. stock market closed with sharp losses on Monday, after a much weaker-than-expected reading on manufacturing data as well as concerns over a slowdown in China, triggered the worst selloff in several months.

The S&P 500 and the Dow Jones Industrial Average ended the day with the steepest decline since June 20.

U.S. manufacturers expanded in January at the slowest rate in eight months as the pace of new orders sharply decelerated, according to the closely followed ISM index. The Institute for Supply Management index sank to 51.3% from 56.5% in December. That’s the lowest level since last May. Economists surveyed by MarketWatch had expected the index to drop to 56%

From the New York Times, a belated recognition:

The Middle Class Is Steadily Eroding. Just Ask the Business World.

As politicians and pundits in Washington continue to spar over whether economic inequality is in fact deepening, in corporate America there really is no debate at all. The post-recession reality is that the customer base for businesses that appeal to the middle class is shrinking as the top tier pulls even further away.

If there is any doubt, the speed at which companies are adapting to the new consumer landscape serves as very convincing evidence. Within top consulting firms and among Wall Street analysts, the shift is being described with a frankness more often associated with left-wing academics than business experts.

The Washington Post notes a sea change:

Report: Majority of U.S. kids under age 2 are now children of color

For the first time, a majority of American children under age 2 are now children of color  — and 1 in 3 of them is poor, according to a disturbing new report. “The State of America’s Children 2014.” that cites the neglect of  children as the top national security threat.

The report, published by the Children’s Defense Fund, calls on President Obama and America’s political leaders “in every party at every level to mount a long overdue, unwavering, and persistent war to prevent and eliminate child poverty.”

From the Project On Government Oversight, why the hell not?:

Could Post Offices Become Public Banks?

The U.S. Postal Service is floundering—2013 was the seventh year in a row to report a net loss, at a whopping $5 billion—and  nobody is quite sure how to fix it. Go Private? Close branches? Deliver Mail only four days a week? Ideas are being thrown around but little progress has been made in improving the troubled agency.

But last week, the office of the Inspector General of the U.S. Postal Service released a report with an out-of-the-box suggestion that would produce $8.9 billion in new annual profits: Turning the Post Office into a bank, with savings accounts, loans and debit cards. Furthermore, it would greatly benefit the poor, who lack banking options and are often gouged by predatory financial services.

The idea has been floated before but with official backing from the Inspector General it has a higher degree of credibility and plausibility. Add in the fact that it wouldn’t require Congressional approval, only an executive order from the President, and maybe the out-there proposal could actually become a reality.

Still think the idea sounds crazy? Consider this: The Post Office already was a bank. From 1911-1967, savings accounts were offered with 2 percent interest, ending because of competition from private banks with higher interest rates. The post office still provides money orders.

From Medical Daily, a notable side effect:

Medical Marijuana Cuts Suicide Rates By 10% In Years Following Legalization

Legalization of medical marijuana has been found to correlate to a significant drop in suicide rates, providing additional evidence that the federally outlawed substance may have a positive effect on U.S. public health.

The new study, which is published in the American Journal of Public Health, shows that the suicide rate among men ages 20 to 29 and 30 to 39 fell by 10.8 percent and 9.8 percent respectively following a given state’s decision to legalize medical marijuana. Although the relationship was weaker and less precise among women, the authors believe that the findings provide strong evidence in favor of medical cannabis. “The negative relationship between legalization and suicides among young men is consistent with the hypothesis that marijuana can be used to cope with stressful life events,” they wrote.

On to Europe with an anxious twist from CNNMoney:

Pressure building for ECB rate cut

Another interest rate cut in Europe could be just around the corner as the risk of deflation rears its ugly head again.

The first official estimate of eurozone inflation in January was a weaker-than-expected 0.7% — the same level that prompted the European Central Bank to cut rates in November. Consumer prices rose by 0.8% in December.

The weaker January number “puts significant pressure on the ECB to take further stimulative action at its February policy meeting next Thursday,” said IHS Insight’s chief European economist Howard Archer.

Cheaper energy was largely to blame, but the stronger euro has also been pulling import prices down, economists said.

Quartz covers mordida:

Lithuanians and Romanians are more than six times as likely to be asked for bribes than the EU average

A fifth of Danes think corruption is prevalent, for example (the lowest level in the EU), but only 3% say they are personally affected by it in their daily lives. Some 12% claim they know someone who has taken a bribe, but only 1% say they have paid, or been expected to pay, a bribe themselves.

In much of western Europe, then, it seems that corruption is a somewhat abstract concept for the common person—confined to criminal cliques or a select few who abuse their positions of power (Danes reckon politicians are the most corrupt group in their country). But as you travel to the south and east, corruption appears to creep into one’s daily life, a depressingly routine feature of doing business or accessing public services. In the past 12 months, around one in three Lithuanians and one in four Romanians say they were asked or expected to pay a bribe; the EU average is less than one in 20.

Al Jazeera America sets the cost:

Report: EU corruption costs $162B annually

  • All 28 member states suffer from some level of corruption, the report found

Corruption affects all member countries of the European Union and costs the bloc’s economies about 120 billion euros ($162.19 billion) a year, an official EU report published Monday said.

European Commissioner Cecilia Malmstrom, who presided over the first-ever official EU-wide study on corruption, said the estimated amount lost annually due to padded government contracts, covert political financing, bribes to secure health care and other corrupt practices would be enough to fund the European Union’s yearly operating budget.

All 28 EU member states suffer from some level of corruption — defined broadly by the report as the “abuse of power for private gain” — the report found.

One more headline [only], from BBC News:

Corruption across EU ‘breathtaking’ – EU Commission

On to Britain and a call for caution from Deutsche Welle:

Steinmeier urges UK to stay in EU, voices doubt on treaty change

  • Foreign Minister Frank-Walter Steinmeier has appealed to the UK to remain in the European Union, regardless of progress on the EU treaty change sought by Britain’s Conservative-led government.

Frank-Walter Steinmeier made his first visit to London since returning to the foreign minister’s post on Monday, asking his British counterpart William Hague not to lose sight of the benefits of EU membership.

“In this 21st century world, we want to protect our political, economic and cultural influences,” Steinmeier said, adding that, on the 100th anniversary of the outbreak of World War I, such European ties “really must not be underestimated.”

The German foreign minister said it would be “an exaggeration” to assert that Germany and the UK were on precisely the same page when it came to treaty reform for the EU.

Xinhua sounds the alarm:

London housing market under price bubbles risk, warns Ernst and Young

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

The EY ITEM Club forecast showed the average house price in London is expected to reach nearly 600,000 pounds (980,000 U.S. dollars) by 2018, some 3.5 times the average price in Northern Ireland and more than 3.3 times the average in the North East.

It said the average house prices in Britain growing by 8.4 percent this year and 7.3 percent in 2015, before cooling to around 5.5 percent in 2016.

And simultaneously booms:

British manufacturing off to strong start in 2014

Britain’s manufacturing sector maintained its strong growth into 2014, posing an improved domestic demand and solid output growth supported by rising export orders in January, said a survey report on Monday.

The report, jointly issued by Markit and the Chartered Institute of Purchasing and Supply (CIPS), showed the Purchasing Manager’s Index (PMI) for the British manufacturing sector was at 56.7 in January of this year.

The figure is at its lowest level in three months, but still showed a robust improvement in overall operating conditions for the manufacturing sector.

A reading of 50 points or greater indicates expansion, while below 50 indicates contraction.

A qualified UK separatism endorsement from El País:

Spain will not oppose Scottish EU entry: foreign minister

  • But García-Margallo warns that re-entry to the Union will take considerable time

Spanish Foreign Minister José Manuel García-Margallo has stated that should Scotland elect to break away from the United Kingdom, Spain will not oppose the move because it does not have any bearing on the internal affairs of the country. “If the Constitution of the United Kingdom permits – and it seems that it does – that Scotland call a referendum on their possible independence, we will say nothing on the matter,” he said in an interview with the Financial Times.

However, the minister adhered to the Popular Party (PP) administration’s line over Catalonia’s own designs on a referendum for independence; one of staunch resistance.

On to Sweden and a call from TheLocal.se:

EU: Sweden should ban secret party donations

While the EU’s executive body acknowledged that Sweden was among the least corrupt countries in the EU, it pointed to several areas of potential improvement.

Specifically, Sweden could improve its transparency if it considered a general ban on anonymous political party donations. Sweden remains one of few EU countries without total party-funding transparency, and the government came under fire last month when it decided to keep the lid on private donations.

The report also hinted that Sweden could do more to combat the risk of corruption at the municipality and county level, which the commission said could be fixed by making authorities obliged to secure transparency in public contracts with private entrepreneurs.

TheLocal.se again, with hard times intolerance:

Afrophobic hate crimes on the rise in Sweden

Hate crimes directed against Sweden’s black population have increased in recent years, according to a report published on Monday, prompting grave concern from Sweden’s integration minister.

Afrophobia, defined as hostility towards people with a background from sub-Saharan Africa, is soaring in Sweden, according to the researchers who compiled the government-commissioned report. They wrote on Monday in the opinion pages of the Dagens Nyheter newspaper (DN) that it was time society took these statistics seriously.

Between 2008 and 2012, the number of reported hate crimes against Afro-Swedes, defined as anyone with African heritage living in Sweden, rose by 24 percent, while hate crimes in general during the same period decreased by six percent. Between 2011 and 2012 alone, the number of Afrophobic hate crimes rose by 17 percent, the researchers explained.

On to Brussels and a critique via DutchNews.nl:

Brussels criticises ‘revolving door’ between Dutch politics and industry

While the Dutch integrated approach to preventing corruption and bribery could serve as a model to other EU countries, the Netherlands should still do more to improve transparency in politics, the European Commission said on Monday.

While welcoming the fact that much has been done in the Netherlands to improve transparency, the Commission went on to recommend improvements in the way the business interests of ministers are examined.

Officials’ private, financial and business interests are considered a private matter and information about their assets and interests is not available to the public, the report points out.

Nor are there any rules forcing MPs to declare potential conflicts of interest or barring them from holding financial interests or engaging in external activities.

Germany next and a peculiar call from TheLocal.de:

Industry boss: ‘Too many students harm economy’

One of Germany’s top commerce experts warned on Monday that there were so many young people at university, and so few in traineeships, that the country’s economy would suffer.

“The consequences to Germany’s economy will be damaging, if the trend to study at any cost is not stopped,” said Eric Schweitzer, president of the Association of German Chambers of Commerce and Industry (DIHK).

Schweitzer was referring to the amount of young people who undertake lengthy study in Germany, while companies struggled to fill traineeships.

“The truth is that many years of increasing student numbers in Germany have resulted in our classrooms now bursting at the seams, while companies are desperately seeking apprentices,” he said in a statement.

France next and a concession to the “family values” set from TheLocal.fr:

Hollande puts off family law to avoid new fight

A day after massive protests over President François Hollande’s “family phobia”, his government on Monday abruptly postponed plans to pass a controversial new family bill, that would likely have picked another fight with France’s traditional conservatives.

France’s Socialist government on Monday put off plans for a new family law after demonstrations by thousands of angry conservatives.

Hollande’s administration announced on Monday it was postponing its plans to move ahead with legislation that would have legalized medically assisted procreation for same sex couples, and tackled issues like surrogacy.

A source in Prime Minister Jean-Marc Ayrault’s office said the government would no longer present a bill this year that officials had said was aimed at modernising the law to reflect the new “diversity” of families.

Nature’s newsblog takes the pledge:

Hollande pledges to avoid cuts to France’s science funding

French President François Hollande promised to spare the research and higher education budget from savings of €50 billion (US$67 billion) that his government has pledged to find over the next three years to reign in its massive public deficit.

The government will find other ways to cut the deficit, avoid tax increases and ensure business can increase investment and create jobs, he said during a visit to the University of Strasbourg.

In a speech devoted entirely to research and higher education, Hollande also said he would maintain the controversial research tax credit (CIR) because companies appreciate it and it helps attracts foreign investment.

And from TheLocal.fr, a demand:

EU: France must root out corruption at local level

France remains a country where the worlds of international business and public procurement are blighted by shady dealings and corruption, according to a new EU report. But just how bad is corruption in France and how does it compare to other countries in Europe?

France needs to do more to fight corruption a new report from the European Commission argues, especially in the areas of international business transactions and public procurement, which are still ripe with misdeeds.

“Corruption-related risks in the public procurement sector and in international business transactions have not been addressed,” the report concludes.

On to Switzerland and the first of a schizy set of headlines from TheLocal.ch:

Swiss ban proposed on sex education for kids

Swiss voters will decide whether to ban compulsory sex education for children under nine after conservative groups mustered enough signatures to force a plebiscite, the authorities said on Monday.

The federal administration said campaigners had gathered more than the 100,000 signatures of voters required to put their measure to the public for approval.

The campaign coalition — whose goal is the “protection against sexualisation in kindergartens and primary schools” — handed in its petition in December and the government is now obliged to set a date for a vote.

And out of left field, also from TheLocal.ch:

Swiss want to reopen pot legalization debate

A Swiss parliamentary committee looking into drug issues wants to reopen the debate on the legalization of marijuana in the wake of developments in the US, Uruguay and New Zealand.

“Many models that exist around the world should be studied and analyzed, that is the basis of our reflection,” Toni Berthel, committee president and a member of the Swiss association for addiction, is quoted as saying by the ATS news agency.

Berthel confirmed information reported on Sunday by the Schweiz am Sonntag weekly newspaper about the new look at Swiss cannabis laws.

Spain next and a matter of perception from El País:

95 percent of Spaniards see corruption as institutionalized

  • “Political will is absent” in battle against graft, notes Brussels report

Ninety-five percent of Spaniards believe corruption is generalized, according to the first continent-wide study on the issue by the European Commission. Only respondents in Greece (99 percent) and Italy (97 percent) outdid Spain. The report, which was presented on Monday in Brussels, underscores the magnitude of the issue in Europe: three out of four EU citizens believe corruption is an institutional problem.

In two areas of the survey Spain topped the charts. Asked if the level of corruption has risen in the past three years, 77 percent said yes, more than in the other 27 member states. Two out of every three respondents said that corruption affected their daily lives, more than in any other nation. The survey was conducted in February and March 2013, when a series of corruption scandals involving the government, labor unions, political parties and the monarchy occupied the front pages in Spain.

From TheLocal.es, Coke Zero:

Zero tolerance to Coke plant closures

Thousands of workers from Coca-Cola bottling factories in Spain marched on Sunday in protest at plant closures they say will cost 750 jobs.

In red caps and vests bearing the logo of the giant US drinks company, crowds marched in Madrid and the eastern city of Alicante, where two of the threatened plants are located.

Coca-Cola’s plan to close four of its bottling factories in Spain is expected to lead to 750 workers being laid off and 500 others being offered relocation to other plants.

Another protest from thinkSPAIN:

Nationwide protest over ‘abusive’ electricity costs

THOUSANDS of people across Spain joined in a countrywide protest over rocketing electricity prices on Saturday.

Demonstrations were held in 23 cities, mostly provincial capitals, including Madrid, Valencia, Alicante, Barcelona, Murcia, Málaga, Almería, Granada, Córdoba, Huelva, Sevilla, Cádiz, Jaén, and Las Palmas de Gran Canaria.

Carrying banners calling for Luz a precio justo (‘electricity at a fair price’), the demonstrators clamoured against the government’s forcing the consumer to bear the cost of its own debt with energy suppliers, leaving already hard-pressed householders suffering prohibitive prices.

And an austerian measure from TheLocal.es:

King freezes wages of Queen and Princess

King Don Juan Carlos has gone against the trend of royal secrecy in Spain and publicized the new fixed salaries of his wife Queen Sofía and daughter-in-law Princess Letizia.

It’s the first time the 76-year-old monarch has willingly made information on royal earnings available to Spain’s general public.

In a press release published by Spain’s Zarzuela Palace, the newly-fixed wages of royal family members have been disclosed in detail.

Queen Sofía of Spain will earn €131,739 in 2014, a sum roughly resembling her wages last year but which is no longer determined by so-called representation costs.

As for Letizia Ortiz, wife of Prince Felipe and future queen of Spain, she will receive a grand total of €102,464.

El País schmoozes:

Rajoy looks to 2015 race with soothing pledges for tax reform and stimulus measures

  • PM bashes Rubalcaba for being negative and blames Socialist leader for current “agony”

The Popular Party (PP) on Sunday officially kicked off the beginning of the second half of its current term in government with pledges from Prime Minister Mariano Rajoy to carry out his long-awaited ambitious tax reform and other economic measures to help Spain get back on its feet.

As PP officials begin to look toward the next general elections scheduled for the end of next year, the ruling party has tried to use its three-day political conference in Valladolid to showcase proposed strategies in an effort to win voters’ confidence in its recovery plan. But at the close of national meeting, Rajoy avoided offering any specifics on his plans, but was able to muster rallying cheers from stalwart party members with an unusually aggressive attack on opposition Socialist Party leader Alfredo Pérez Rubalcaba.

The verbal blitzkrieg was seen as an attempt to breathe new life into an increasingly embattled Popular Party, which finds itself bitterly divided on a range of issues, including the government’s proposal for abortion reform; the route that should be taken that would lead to ETA’s eventual demise; and the ongoing public corruption inquiries that have engulfed many of its members.

Italy next, starting with a Bunga Bunga bounceback from New Europe:

Italy: Poll finds Berlusconi-led government would win election

Judges may be convicting him and prosecutors opening yet new probes, but it seems that Italians would yet again elect a Berlusconi-led government it they had to vote now. According to a new poll published in February 3, a center-right alliance led by embattled former Prime Minister Silvio Berlusconi would be the most likely winner if Italians were to vote now under a reform proposal currently before parliament.

The poll, commissioned by newspaper Corriere della Sera and conducted by the Ipsos agency found that potential center-right coalition would get 37.9 percent of the vote, above the 37 percent threshold needed under the new rules being examined to obtain a large winner’s bonus of parliamentary seats without having repeat elections.

The centre left according to the same poll would get 36 percent while Bepe Grillo’s 5-Star protest movement 20.7 percent.

TheLocal.it hyperbolizes:

Five Star bloggers ‘potential rapists’: MP

Italy’s lower house speaker has accused the anti-establishment Five Star Movement of instigating violence and slammed bloggers on the party website as “potential rapists” following a flurry of sexist abuse online.

Laura Boldrini was commenting on a post on the Facebook page belonging to the Five Star Movement’s leader Beppe Grillo, which asked on Saturday “what would you do if you found Boldrini in your car?”

The question, which accompanied a satirical video and was taken up on the movement’s official website, sparked a series of abusive comments, including calls for Boldrini to be raped.

The post was an “instigation to violence, just look at the comments it prompted, nearly all of which were made in a sexist context,” Boldrini said in an interview late Sunday on Italian television.

And from TheLocal.it, ubiquity:

Almost all Italians think corruption is rife

Almost all Italians believe that corruption is widespread in their country, according to the European Commission’s anti-corruption report released on Monday. While some progress has been made, the EU’s executive body highlighted a number of areas in need of urgent action.

Ninety-seven percent of Italians think that corruption is rife, second only to Greece with 99 percent and well above the European average of 76 percent, the European Commission report found.

Bribery and connections are the easiest ways to get certain public services, 88 percent of Italians believe, compared to 73 percent of Europeans.

People in Italy, however, are more optimistic than those in Greece, where 93 percent of the population believe bribery is the easiest way to get what you want, compared to 92 percent in Cyprus and 89 percent in Slovakia and Croatia.

TheLocal.it again, with oldies and not-so-goodies:

Crisis-hit Italians survive on out of date food

Italians may be well-known for their healthy diet, but more are eating food well past its use-by date as the effects of the financial crisis continue to bite, according to new figures from Coldiretti, the Italian farmers association.

Fifty-nine percent of Italians, or six out of ten, eat out of date food, with fifteen percent eating food that is a month or more old, the association revealed.

Eight percent are eating food that is way beyond a month after its use-by date, while 34 percent are consuming products up to a week old and two percent never check expiry dates.

Coldiretti said the “worrying trend” poses a “significant risk to health”

After the jump, the latest on the Greek crisis, Ukrainian uncertainty, Russia currency freefall, Indian action, Thai troubles continue, Vietnamese expectations, more Chinese warning signs and neoliberal moves, Abenomics fails, pesticide alerts and other environmental woes, and the latest edition of Fukushimapocalypse Now!. . .and more:  Continue reading

Headlines of the day II: EconoGrecoEcoFukuics


Today’s collection of headlines from the realm of human transactions and their consequences begins with the jaded avocations of the big winners. From The Guardian:

Super rich shift their thrills from luxury goods to costly experiences

  • Gourmet dining, private flights, bespoke safaris, slimming clinics and art auctions emerging as top status symbols

They say money can’t buy happiness but the world’s super rich are still giving it their best shot, spending $1.8tn (£1.1tn)last year on luxury goods and services – with extreme holidays, gourmet dining and art auctions emerging as the status symbols du jour.

“Luxury is shifting rapidly from ‘having’ to ‘being’ – that is, consumers are moving from owning a luxury product to experiencing a luxury,” said BCG senior partner Antonella Mei-Pochtler. “They already have the luxury toys; the cars and the jewellery.”

Of the $1.8tn spent on luxuries in 2013, according to BCG an estimated $1tn went on services – from private airline flights to luxury slimming clinics, to a five-star hospital stay where the patient will be waited on by a butler and the en-suite facilities include a marble bath.

The £1.1tn spent is slightly more than the wealth controlled by the poorest half of the world’s population – 3.5 billion people. Oxfam recently estimated their combined wealth at £1tn in a report on inequality, where it pointed out that this sum was the same as the wealth controlled by the world’s richest 85 billionaires.

Warnings of things to come from the London Telegraph:

Currency crisis at Chinese banks ‘could trigger global meltdown’

  • A rise in foreign funding at China’s banks poses a threat for international lenders

The growing problems in the Chinese banking system could spill over into a wider financial crisis, one of the most respected analysts of China’s lenders has warned.

Charlene Chu, a former senior analyst at Fitch in Beijing and now the head of Asian research at Autonomous Research, said the rapid expansion of foreign-currency borrowing meant a crisis in China’s financial system was becoming a bigger risk for international banks.

“One of the reasons why the situation in China has been so stable up to this point is that, unlike many emerging markets, there is very, very little reliance on foreign funding. As that changes, it obviously increases their vulnerability to swings in foreign investor appetite,” said Ms Chu in an interview with The Telegraph.

Reuters covers losses:

Emerging market funds lose $9 billion in past week: data

Investors yanked $9 billion from emerging stock and bond funds during a turbulent past week, with equities seeing their biggest outflow in 2-1/2 years, banks said on Friday citing data from Boston-based fund tracker EPFR Global.

EPFR had released data to clients late on Thursday showing emerging equity funds lost $6.3 billion in the week to January 29, the biggest weekly outflow since August 2011.

This week has seen some major falls in emerging currencies’ exchange rates, with central banks forced into rate rises or market interventions to limit the swings. Those currency losses and rate rises have put pressure on bond and stock holdings, forcing exits.

The New York Times brings it closer to Casa esnl:

Parched, California Cuts Off Tap to Agencies

Acting in one of the worst droughts in California’s history, state officials announced on Friday that they would cut off the water that it provides to local agencies serving 25 million residents and about 750,000 acres of farmland.

With no end in sight for the dry spell and reservoirs at historic lows, Mark Cowin, director of the California Department of Water Resources, said his agency needed to preserve what little water remained so it could be used “as wisely as possible.”

It is the first time in the 54-year history of the State Water Project that water allocations to all of the public water agencies it serves have been cut to zero. That decision will force 29 local agencies to look elsewhere for water. Most have other sources they can draw from, such as groundwater and local reservoirs.

But the drought has already taken a toll on those supplies, and some cities, particularly in the eastern San Francisco Bay Area, rely almost exclusively on the State Water Project, Mr. Cowin said.

MintPress News eases up:

CA Law Enforcement Proposes Softening Drug Laws

If passed, those convicted for drug possession would be sent to substance-abuse treatment centers, sentenced to probation or ordered to perform community service, instead of being incarcerated.

For decades, law enforcement officers across the U.S. have fought the war on drugs by locking users behind bars. But since that strategy hasn’t proven to be successful in the slightest, some officers in California have come together to propose reducing charges for the simple possession of all drugs from a felony to a misdemeanor.

One of the proposal’s biggest supporters is San Francisco District Attorney George Gascón, who is working with San Diego Police Chief Bill Lansdowne to push for the inclusion of such a measure on the state ballot this fall.

If passed, those convicted for drug possession, including heroin, would be sent to substance-abuse treatment centers, sentenced to probation or ordered to perform community service, instead of being locked behind bars. Unlike a felony, a misdemeanor charge would not appear on an individual’s permanent record.

The Guardian condescends to profit:

US newspapers fall out over ‘dead peasant’ insurance

Two weeks ago, the publisher of two Californian newspapers – the Orange County Register and Riverside Press-Enterprise – laid off 39 employees, including eight full-time newsroom staff and four part-time sub-editors and designers.

It was part of a restructuring programme by Freedom Communications, following 42 redundancies in December, as it seeks to centralise Press-Enterprise production at the Register’s offices.

Then Freedom followed up that bad news by sending an email to the staff who remain informing them that the company wishes to buy life insurance for them.

But the beneficiaries of the million-dollar-plus policies will not be the employees or their families, but the company’s pension scheme.

A writer in the Los Angles Times (the Register’s rival), Michael Hiltzik, referred to the plan as a “ghoulish corporate strategy”. He went on to explain that it is not illegal – it’s known formally as COLI (“company owned life insurance”).

More losers from Al Jazeera America:

More jobless Americans losing benefits every week

  • Unemployment rate remains stubbornly high, as Congress fails to renew payments for more than 1.5 million on the dole

The lifeline of long-term unemployment benefits ended for at least 1.5 million Americans at the end of December, and more will see their payments cut each week that Congress fails to act. Almost 38 percent of the unemployed had been out of work for 27 weeks or more as of December, according to the Bureau of Labor Statistics. While the unemployment rate is down to 6.7 percent from 10 percent in October 2008, at the height of the recession, 10.4 million people remained out of work in December.

The Guardian loads up the money bin:

Google reports 17% revenue rise for fourth quarter

  • Results come a day after search giant sells Motorola Mobile
  • Low-cost mobile ads chip away at the price for online ads

Google’s revenues climbed 17% in the final quarter of 2013, the company announced Thursday, but low-cost mobile ads chipped away at the price the tech giant commands for online ads.

The company’s results came a day after it announced it was selling Motorola Mobile for a fraction of its purchase price. Google’s consolidated revenue, which includes the money-losing Motorola smartphone business, rose to $16.86bn for the quarter from $14.42bn in the fourth quarter of 2012. Analysts polled by Thomson Reuters had expected $16.75bn. Profits rose 17% to $3.38bn, or $9.90 a share, up from $2.89bn, or $8.62 per share, for the same period last year.

From The Hill, Hillary-ous idiocy:

Mont. House candidate calls Hillary Clinton ‘Antichrist’

Montana House candidate Ryan Zinke, the early Republican front-runner for Montana’s open House seat, called former Secretary of State Hillary Clinton the “Antichrist” in a recent campaign appearance, according to a local newspaper.

“We need to focus on the real enemy,” he said referring to Clinton, according to the Big Fork Eagle, before calling her the Antichrist.

Zinke, a former Navy SEAL, is one of six Republicans in a crowded field to replace Rep. Steve Daines (R-Mont.), who is running for the Senate. He’s emerged as the early front-runner in the GOP primary due to his fundraising prowess. Zinke raised $450,000 in the last three months of 2013 and has $350,000 in the bank.

Bloomberg plays the middle:

House Republicans’ Economic Agenda Targets Middle Class

U.S. House Republican leaders are preparing an economic agenda that includes energy proposals aimed at lowering utility bills and countering President Barack Obama’s focus on income inequality, according to a document obtained by Bloomberg News.

The agenda includes voting on an alternative measure to Obama’s health-care law and re-authorizing a funding program for career and technical education. The framework is designed to reach middle-class voters whose wages have remained stagnant even as the U.S. economy improves.

The broad outline was distributed to Republicans yesterday at a private meeting in Cambridge, Maryland, where lawmakers are concluding a three-day policy retreat today. Republicans, largely blamed for the 16-day partial government shutdown in October, want their positions to be seen as an alternative to those of Obama and the Democrats.

The Guardian spots the flaw:

The problem with retirement savings: making enough money to save

  • The president’s new MyRA plan is a tiny, positive step for Americans, but it won’t help so long as wages are shrinking

Americans don’t have a problem saving for retirement. The real issue is that Americans aren’t making enough money.

There’s no question that a retirement crisis is looming. The numbers just don’t work for many Americans right now. For instance, do you think you can live on only $575 a month? That’s for rent, food, utilities, and transportation as well as any fun you may want to have. Probably not: an income of $575 a month is well below the federal poverty line. Yet that’s the estimate of how much the average American with a 401k plan will be able to earn from his or her nest egg. And about half of all Americans don’t even have a 401k plan, often because their employer doesn’t offer one.

Across the Atlantic with Europe Online:

Annual eurozone inflation unexpectedly falls in January

Annual eurozone inflation unexpectedly fell in January, according to data released Friday, adding to deflation fears and increasing pressure on the European Central Bank to deliver a new interest rate cut.

The cost of living in the 18-member currency bloc dropped to 0.7 per cent in January, from 0.8 per cent in December, the European Statistics Office Eurostat said.

The fall in consumer prices took inflation further away from the ECB’s annual inflation target of below but close to 2 per cent.

Bothering BBC News:

Fall in eurozone inflation rate fuels deflation concerns

Calls for European Central Bank action to help protect the eurozone’s fragile recovery have grown after the release of inflation and jobless data.

Official figures showed that eurozone inflation fell to 0.7% in January, down from 0.8% in December and further below the ECB’s 2% target.

It has fuelled worries about whether the euro bloc could suffer deflation, potentially de-railing economic growth.

Separate data showed the unemployment rate in December was unchanged at 12%.

Edible insecurity from EurActiv:

Food security hindered by seed market dominance, MEPs warn

The EU seed market is dominated by a few large seed businesses rather than a diverse range of smaller companies, which has implications for the continent’s food security, says a report commissioned by European Parliament Green group.

Five companies control about 95% of the vegetable seed sector and 75% of the maize market share specifically, according to the report, presented in the European Parliament on Wednesday (29 January).

The assertion goes against European Commission and seed industry’s position that the market, and the five dominant companies, is made up of some 7000 mainly small and medium-sized entreprises, allowing for healthy competition.

“This is simply not true. The EU seed market is not healthy. It is not diversified,” said Bart Staes, a Green MEP from Belgium who presented the report, ‘Concentration of market power in the EU seed market’.

On to Britain with The Guardian:

Real wages have been falling for longest period for at least 50 years, ONS says

  • Real wages have been falling by 2.2% a year in the longest sustained period of falling real wages in the UK on record

Real wages have been falling consistently since 2010, the longest period for 50 years, according to the Office for National Statistics, adding that low productivity growth seems to be pushing wages down.

Real wage growth averaged 2.9% in the 1970s and 1980s, 1.5% in the 1990s, 1.2% in 2000s, but has fallen to minus 2.2% since the first quarter of 2010, the ONS figures showed.

TUC general secretary Frances O’Grady said: “Over the last four years British workers have suffered an unprecedented real wage squeeze.

All or none with EUbusiness:

British PM pledges renewed EU referendum push

British Prime Minister David Cameron pledged Friday to force through parliament a bill guaranteeing an in-or-out referendum on EU membership by the end of 2017, after the upper house killed off legislation.

He pledged to wield the Parliament Act, which enforces the supremacy of the elected lower House of Commons over the appointed upper House of Lords.

The act is only rarely used to overcome the Lords blocking the will of the Commons. It has only ever been enacted a handful of times since it was introduced in 1911.

Norway next, with an exclusive from TheLocal.no:

Norway oil fund blacklists Israeli firms

Norway’s huge sovereign wealth fund, the world’s largest, blacklisted two Israeli companies involved in construction of settlements in East Jerusalem, the country’s finance ministry said Thursday.

The ban on investing in the firms revived a three-year prohibition on them that the Government Pension Fund of Norway had dropped in August last year.

The companies are Africa Israel Investments, an Israeli real estate developer, and its construction subsidiary Danya Cerbus.

The ministry cited the company’s alleged “contribution to serious violations of individual rights in war or conflict through the construction of settlements in East Jerusalem,” a territory where Israel’s claims are not recognised by the international community.

On to Amsterdam and an austerian retreat from DutchNews.nl:

Single parents on welfare benefits ‘won’t have to apply for jobs’

The government has agreed to drop plans to force single mothers with young children and on welfare benefits to apply for jobs.

Kees van der Staaij, leader of the orthodox Christian party SGP, broke the news during a debate organised by the religious paper Nederlands Dagblad. Talks between junior social affairs minister Jetta Klijnsma and opposition parties on reaching a compromise on the reforms are currently ongoing.

Klijnsma wants to shake up the welfare system by making sure claimants are actively looking for work and introducing work for welfare schemes. But she needs the support of opposition parties to get the changes through the upper house of parliament, where the government does not have a majority.

Germany next, first with TheLocal.de:

US view of Germany ‘better than ever’

Despite America’s reputation in Germany taking a hit over the NSA spying scandal, Americans have a more positive impression of Germany than at any time in the last 12 years, according to a study released on Thursday.

The annual Magid study, which has been conducted every year since 2002, included questions on US-German relations as well as Germany’s role in Europe.

Carried out at the end of  2013, it found 60 percent of Americans had an excellent or good impression of Germany, particularly on economics, education and technology.

Germany was also seen as an economic leader and was chosen as the country best suited to lead Europe out of its debt crisis, followed by Great Britain and the US.

Europe Online declines:

German Christmas retail sales unexpectedly slump

German retail sales fell during the key Christmas shopping season, according to data released Friday, setting back hopes of private consumption emerging as a driving force behind growth in Europe’s biggest economy.

Retail sales fell 2.5 per cent in real terms in December, after gaining 0.9 per cent in November. Analysts had expected retail sales to increase by 0.2 per cent.

Year-on-year, retail sales also posted a surprise fall, dropping by 2.4 per cent in December, compared with a 1.1-per-cent rise in November.

Another decline from RFI:

France deports fewer illegal immigrants in 2013

French Interior minister Manuel Valls has announced that 27,000 illegal immigrants were deported in 2013, 9,000 fewer than in 2012. The right-wing opposition slammed the Socialist government’s performance as “laxism”.

Some 46,000 undocumented immigrants were given papers to stay, 10,000 more than the previous year, the figures, published Friday, showed.
Parliamentary elections 2012

They are the first official review of government migration policy since François Hollande came to power in May 2012.

TheLocal.fr hits the bricks:

Thousands march for traditional family values

Tens of thousands of people marched in Paris and Lyon on Sunday against new laws easing abortion restrictions and legalising gay marriage, accusing French President Francois Hollande’s government of “family phobia”.

Police said 80,000 people took to the streets of the French capital, creating a sea of blue, white and pink – the colours of the lead organising movement LMPT (Protest for Everyone) – who gave a far higher turnout figure of half a million.

Demonstrator Philippe Blin, a pastor from nearby Sevres, said he felt a “relentlessness against the family” in France.

At least 20,000 rallied in Lyon, many of them ferried in aboard dozens of buses, waving placards reading “Mom and Dad, There’s Nothing Better for a Child” and “Two Fathers, Two Mothers, Children With No Bearings” — a slogan that rhymes in French.

While France 24 notes odd political bedfellows:

Muslims join Paris protest against gender equality drive in schools

Tens of thousands of supporters of the conservative “Manif pour Tous” movement gathered in Paris on Sunday to protest against gender equality teaching in schools and fertility treatment for same-sex couples.

Sunday’s march included a prominent Muslim contribution in a protest movement, originally opposed to gay marriage legislation that was passed in 2013, that has so far been overwhelmingly linked to far-right political parties and to conservative Catholic groups.

The “Manif Pour Tous” (MPT) mounted huge protests before legislation was passed in 2013 allowing gay marriages. Its focus now is on a family law, due to be debated later in the spring, which would allow for medically-assisted procreation (MAP) and IVF treatment for same-sex couples.

Many protesters also told FRANCE 24 they were worried about the state’s role in sex education, and the supposed “gender theory” lurking behind an “ABCD of equality” initiative aimed at breaking down gender stereotypes in schools.

From Spain, a countermarch from TheLocal.es:

Thousands join Madrid abortion-rights rally

Thousands of pro-choice campaigners converged on the Spanish capital Saturday to voice their opposition to a government plan to restrict access to abortion in the mainly Catholic country.

Demonstrators shouting slogans and carrying banners that read “It’s my right, It’s my life” crowded around a Madrid station to greet a “freedom train” of activists from northern Spain for the country’s first major protest against the plan.

Under pressure from the Catholic Church, Prime Minister Mariano Rajoy’s conservative government announced on December 20th it would roll back a 2010 law that allows women to opt freely for abortion in the first 14 weeks of pregnancy.

The new law — yet to pass parliament, where the ruling People’s Party enjoys an absolute majority — would allow abortion only in cases of rape or a threat to the physical or psychological health of the mother.

Xinhua takes vows:

Spanish PM Rajoy promises fiscal reform, tax cuts

Spanish Prime Minister Mariano Rajoy promised on Sunday to see through a program of fiscal reform in the remaining two years of his mandate.

Speaking to close the national convention of his ruling Popular Party (PP), Rajoy said he would continue with the program of reforms his party have introduced in the slightly over two years since they have been in power.

“We will carry out fiscal reform: of course we will,” said Rajoy, who said it would be “an integral reform which will stimulate growth and employment in line with the recovery of the country.”

The ultimate human austerian cost from TheLocal.es:

Spain’s suicide rate highest in eight years

Figures from Spain’s National Institute of Statistics (INE) show a surge in the suicide rate but heart attacks remain the leading cause of death.

The most recent data from 2012, released on Friday, reveals that 402,950 people died in Spain, some 15,039 (3.9 percent) more than in 2011.

There were 3539 suicides (2,724 men and 815 women), up 11.3 percent from the year before, a rate of 7.6  per 100,000 inhabitants. The figures were the highest since 2005.

According to official broadcaster RTVE, suicide was second only to cancer (15 percent of deaths) in the overall 25-34 age group, but the leading cause of death in young men (17.8 percent).

A Fourth Estate loss from TheLocal.es:

Corruption-probing newspaper chief sacked

Spain’s leading centre-right newspaper El Mundo said on Thursday it was dismissing its director Pedro J. Ramirez, under whose leadership the daily broke a series of political corruption stories.

Ramirez’s scoops included a report last year of alleged secret payments to members of Spain’s ruling party, which forced Prime Minister Mariano Rajoy to fight off calls to resign.

The paper has vigorously pursued stories of corruption on the right and left, including allegations of fraud involving former officials in the Socialist-run southern region of Andalusia.

The usual suspects, doing quite well, via TheLocal.es:

Spain’s top banks enjoy 2013 profit surge

Top Spanish banks have reported a 2013 profit surge, predicting better times ahead after taking hefty losses in Spain and other crisis-hit eurozone nations.

Santander, BBVA and CaixaBank said they had emerged stronger from banking troubles that led to a 41-billion-euro ($56 billion) rescue of their weaker rivals in Spain.

All Spanish banks have had to set aside money for losses on assets, pounded by the collapse in 2008 of a decade-long property boom.

At the same time, they have been obliged to boost the ratio of rock-solid core capital on their balance sheets.

Analysts say risks remain in the sector, with doubtful loans rising in November to 13.08 percent of all credit extended by Spanish banks, the highest since records began in their existing form in 1962.

Xinhua takes us to Portugal:

Portuguese protest against gov’t austerity measures

Thousands of Portuguese staged a protest Saturday against government austerity measures in the downtown of capital Lisbon.

General Confederation of the Portuguese Workers, or CGTP, who organized the demonstration, called for the Portuguese to struggle against the government, oppose the exploitation and poverty and demand for salary rise, employment and welfare.

Raising high placards, the demonstrators marched from Cais Sodre railway station towards Restaurante Square in downtown Lisbon, chanting slogans against government austerity measures and calling for the government to step down.

Italy next, and a populist movement critiqued via AGI:

M5S has been shown ‘excessive’ tolerance, says Letta

Italy’s Prime Minister, Enrico Letta, said “excessive levels of tolerance” had been shown to the anti-establishment Five Star Movement (M5S) following recent controversy.

The group promised to never sit peacefully in parliament again after the President of the Chamber of Deputies, Laura Boldrini, used the hotly debated ‘guillotine’ to swiftly convert a decree on the IMU property tax into law, culminating in the group demanding her resignation, as well as the impeachment of Italian President Giorgio Napolitano.

“I think there has been an excessive level of tolerance towards methods falling outside those allowed by democratic rules”, Letta stated during a press conference. “Both the accusations towards President Napolitano and behaviour in parliament must be strongly and clearly condemned”.

After the jump, the ongoing Greek crisis, Ukrainian posturing, Argentine financial woes, Indian uncertainty, Thai electoral turmoil, Malaysian misery, mixed signals from China, Japanese anxieties, ecological disasters, and Fuksuhimapocalypse Now!. . . Continue reading

Chart of the day: Japanese dementia rates soar


From the Yomiuri Shimbun:

BLOG Dementia

Headlines of the day II: PoliEconoEcoFukus


A statement of reality from Quartz:

This land is not your land

  • Pete Seeger died in an America with record inequality

BBC News sounds a belated theme:

State of the Union: Obama promises action on inequality

  • US President Barack Obama: “Whenever I can take steps without legislation to expand opportunity for more American families, that’s what I’m going to do”

US President Barack Obama has promised to bypass a fractured Congress to tackle economic inequality in his annual State of the Union address.

He pledged to “take steps without legislation” wherever possible, announcing a rise in the minimum wage for new federal contract staff.

On Iran, he said he would veto any new sanctions that risked derailing talks.

Bloomberg Businessweek chills out:

Frozen Northeast Getting Gouged by Natural Gas Prices

As temperatures plunge anew into single digits across much of the U.S. Northeast, natural gas prices have been going in the opposite direction. On Jan. 22, thermostats in New York City bottomed out at 7 degrees, a day after the price to deliver natural gas into the city spiked to a record $120 per million British Thermal Units in the spot market on the outskirts of town. That’s about 30 times more expensive than what the equivalent amount of gas cost a hundred miles away in Pennsylvania’s Marcellus Shale, the biggest natural gas field in the U.S. and home to some of the lowest gas prices in the world. And you thought this was the age of cheap energy.

Most of the natural gas that gets used in the U.S. is contracted on a long-term basis and bought with futures and forward contracts, meaning that many consumers in the Northeast won’t feel the full brunt of that price spike. They’re not entirely insulated though. The spot market is there for a reason. Essentially, it’s a refuge for the desperate and unprepared—for those who need to buy or sell immediately. And when a natural gas-fired power plant or a big utility finds itself short, having underestimated the amount of demand it has to fill, its traders and schedulers have to jump into the spot market and pay whatever the going price is. For those buying in parts of the Northeast, it’s been reaching new highs.

PandoDaily exerts plutocratic pressure:

The Techtopus: How Silicon Valley’s most celebrated CEOs conspired to drive down 100,000 tech engineers’ wages

In early 2005, as demand for Silicon Valley engineers began booming, Apple’s Steve Jobs sealed a secret and illegal pact with Google’s Eric Schmidt to artificially push their workers wages lower by agreeing not to recruit each other’s employees, sharing wage scale information, and punishing violators. On February 27, 2005, Bill Campbell, a member of Apple’s board of directors and senior advisor to Google, emailed Jobs to confirm that Eric Schmidt “got directly involved and firmly stopped all efforts to recruit anyone from Apple.”

Later that year, Schmidt instructed his Sr VP for Business Operation Shona Brown to keep the pact a secret and only share information “verbally, since I don’t want to create a paper trail over which we can be sued later?”

These secret conversations and agreements between some of the biggest names in Silicon Valley were first exposed in a Department of Justice antitrust investigation launched by the Obama Administration in 2010. That DOJ suit became the basis of a class action lawsuit filed on behalf of over 100,000 tech employees whose wages were artificially lowered — an estimated $9 billion effectively stolen by the high-flying companies from their workers to pad company earnings — in the second half of the 2000s. Last week, the 9th Circuit Court of Appeals denied attempts by Apple, Google, Intel, and Adobe to have the lawsuit tossed, and gave final approval for the class action suit to go forward. A jury trial date has been set for May 27 in San Jose, before US District Court judge Lucy Koh, who presided over the Samsung-Apple patent suit.

The London Telegraph constricts:

Emerging markets forced to tighten by US and Chinese monetary superpowers

  • The global chain reaction resembles what happened in the East Asia crisis in 1997-1998 when domino effects swept the region

Turkey, India, Brazil and a string of emerging market countries are being forced tighten monetary policy to halt capital flight despite crumbling growth, raising the risk of a vicious circle as debt problems mount.

Turkey’s central bank on Tuesday night hiked interest rates to 12pc from 7.75pc at an emergency meeting in a bid to defend its currency. The lira strengthened to 2.18 against the dollar after the decision, from 2.25.

The move came as India raised rates a quarter-point to 8pc to choke off inflation and shore up confidence in the battered rupee, the third rate rise since Raghuram Rajan took off in September. South Africa’s central bank is meeting on Wednesday as the rand hovers near a record low at 11.06 to the dollar.

More from Nikkei Asian Review:

Inflation-wary emerging economies go for rate hikes

Fighting inflation has become a new mantra for emerging economies like India, Brazil, Turkey and Indonesia as U.S. moves to curtail quantitative easing help weaken their currencies, pushing up the cost of imported goods in these countries. . .

Weak local currencies are setting off inflation. Drops in currency value translate to costlier imports, driving consumer prices in general higher. Speculation that the U.S. would scale down its ultra-easy monetary policy triggered an exodus of money from emerging economies. In particular, currencies of nations with current-account deficits came under selling pressure in the market. The Brazilian real, the Indian rupee, the Indonesian rupiah, the South African rand and the Turkish lira are dubbed the Fragile Five.

Xinhua charts an uptick with mixed results:

Global foreign direct investment rises to pre-crisis levels, UN reports

Global foreign direct investment (FDI) rose to levels not seen since the start of the global economic crisis in 2008, increasing by 11 percent in 2013 to an estimated 1.46 trillion U.S. dollars, with the lion’s share going to developing countries, said a UN report released on Tuesday.

FDI flows to developing economies reached a new high of 759 billion dollars, accounting for 52 percent, and transition economies also recorded a new high of 126 billion dollars, 45 percent up from the previous year and accounting for 9 percent of the global total, showed the figures provided by the UN Conference on Trade and Development.

But developed countries remained at a historical low, or 39 percent, for the second consecutive year. They increased by 12 percent to 576 billion dollars, but only to 44 percent of their peak value in 2007, with FDI to the European Union (EU) increasing, while flows to the United States continued their decline.

Quartz predicts:

Global unemployment is about to get worse

While the rich countries were most affected by the global economic crisis, there are signs of recovery. Although India and China won’t go back to the days of double-digit growth, other emerging countries, especially in Sub-Saharan Africa, paint a more hopeful picture. But the scale of the recovery won’t help the unemployed much, whose numbers are only set to be growing.

In 2013, the unemployed grew by 5 million to 202 million people globally. According to a new report published by the International Labour Organisation (ILO), this number is set to grow by a further 13 million by 2018, even if the rate of underemployment remains same. In countries such as Greece and Spain, the average duration of unemployment has reached nearly nine months.

The ILO’s worries are threefold. First, the recovery is not strong enough to reduce the growing number of unemployed. Second, the fundamental causes of the global economic crisis are yet to be properly tackled. Third, the crisis has forced even those employed into more vulnerable jobs.

ANSAmed has numbers:

Crisis, Lagarde sounds the alarm: 20 mln unemployed in EU

  • IMF director, in Italy and Portugal 1/3 under 25 jobless

The managing director of the International Monetary Fund (IMF) Christine Lagarde has sounded the alarm on record unemployment levels in Europe where almost 20 million are jobless.

‘We cannot say the crisis is over until its impact on the labor market has not reversed’, said Lagarde. When unemployment is high, growth is slow because people spend less and companies invest and hire less, Lagarde also noted, stressing that the most effective way to boost employment is growth.

According to a number of estimates, a growth increase by one percentage point in advanced economies would cut unemployment levels by half a percentage point, giving work to 4 million people.

More from Bloomberg:

Euro Jobless Record Not Whole Story as Italians Give Up

Euro-area data this week will probably show the region ended 2013 with a record jobless rate that reveals only part of the social legacy of the debt crisis.

While economists predict unemployment in December stayed at an all-time high of 12.1 percent, with about 19 million jobless, that tally excludes legions of adults who would also work if they could. Bloomberg calculations for the third quarter show a wider total of 31.2 million people of all ages are either looking for jobs, willing to do so though unavailable, or else have given up.

Giuseppe Di Gilio, 30, is one of 4.2 million such people who don’t appear in Italy’s unemployment statistics. The most recent so-called labor underutilization rate in the third-biggest economy in the euro area was 24 percent, more than double the official jobless rate.

And still more from New Europe:

Growth in the EU: the IMF warns against unemployment, German Fin Min against social spending

“I am convinced that the real problem in the economy is the human being”. That is how Wolfgang Schaeuble, the German finance minister opened his speech at the presentation of the IMF’s new publication, “Growth and Jobs: Supporting the European Recovery”. . .

German Finance Minister actually warned against “excessive social spending” in euro area countries and “endless regulation” from Brussels. As the EU makes an effort to recover from years of recession, we have to be “frank” he insisted. “Europe on average spends twice as much as other parts of the world in social security. You can see where some of the problems lie,” he said.  Moreover, asked whether investments in green economy can offer a sustainable solution to the problem of unemployment, creating an important number of jobs, he answered that what actually happens is the contrary, because the EU’s environmental regulation has gone a bit too far. “We have increasing energy costs which will harm jobs. We have to rebalance.”

EurActiv divides:

Schäuble advocates separate eurozone parliament

Germany’s finance minister Wolfgang Schäuble said yesterday (27 January) he was open to the creation of a separate European parliament for countries using the euro, a step that could deepen divisions within the European Union.

Schäuble’s comments, made during a visit to Brussels, challenge the very foundations of the European Union where lawmaking for all 28 nations is by the bloc’s current parliament.

Splitting that body, critics believe, would represent a dismantling of one of Europe’s biggest symbols of unity.

And then there’s that key piece of the neoliberal agenda, via EurActiv:

Brussels sets advisory group on EU-US trade deal

The European Commission launched on Monday (27 January) a special advisory group of experts to give fresh input on all issues being discussed at the EU-US negotiating table for a Transatlantic Trade and Investment Partnership (TTIP).

“The creation of this group confirms the Commission’s commitment to close dialogue and exchange with all stakeholders in the TTIP talks, in order to achieve the best result for European citizens,” read a Commission press release.

The group, composed of 14 advisors from different consumer, labour and business groups, will help the EU executive to frame the discussion at the negotiating table so that Europe’s high standards of consumer and environmental protection are fully respected.

On to Britain by way of the Irish Times:

No longer flush: Queen down to her last million

  • British monarch’s reserve fund has fallen from £35 million in 2001 to £1 millon now

British members of parliament criticised Queen Elizabeth’s royal household for blowing its annual budget while neglecting repairs at Buckingham Palace, which two MPs suggested was falling apart.

The royal household’s latest accounts showed it had exceeded its 2012-13 budget of £31 million by £2.3 million , the report said.

To plug the gap, it had to dip into a reserve fund.

BBC News booms:

UK economy growing at fastest rate since 2007

  • Chancellor George Osborne: “I am the first to say the job isn’t done”

The UK economy grew by 1.9% in 2013, its strongest rate since 2007, according to the Office for National Statistics (ONS).

But growth in gross domestic product (GDP) for the fourth quarter slipped to 0.7%, down from 0.8% in the previous quarter, it said.

And economic output is still 1.3% below its 2008 first quarter level.

“There’s plenty more to do but we’re heading in the right direction,” Chancellor George Osborne told the BBC.

Sky News adds nuance:

Cable Warns About Wrong Type Of Recovery

The Business Secretary stresses Britain must avoid past mistakes and ensure the property market does not overheat.

Business Secretary Vince Cable has warned that Britain’s economic recovery could prove to be a “short-term bounce” if it is based on a housing boom.

He made the comments on the eve of the publication of the latest GDP figures, which have shown the country’s strongest growth since the financial crisis began in 2007.

But the senior Liberal Democrat expressed concern that the recovery is too heavily based on housing prices and consumer spending.

Denmark next and strange bankster dealings from the Copenhagen Post:

Leaked document: Goldman Sachs wasn’t highest DONG bidder

  • As the finance minister faces parliamentary hearing today, a leaked document contradicts his previous claims

New information has changed the agenda ahead of today’s parliamentary hearing in which Finance Minister Bjarne Corydon (S) will explain the details of the controversial partial sale of DONG Energy to US investment bank Goldman Sachs.

Despite what the government claims, pension fund PensionDanmark’s bid for partial ownership of the state-owned energy company was higher than the bid Goldman Sachs offered, TV2 News reports.

A leaked note revealed that PensionDanmark estimated the stock capital of DONG shares to be 46 billion kroner, a 40 percent higher rate than the 32 billion kroner Goldman Sachs offered.

On Thursday, parliament will vote on allowing Goldman Sachs to invest eight billion kroner in 19 percent of DONG shares. Critics of the sale are concerned with the investment bank’s plans to establish its DONG Energy partial ownership in global tax havens, as well as conditions of the deal that give Goldman Sachs veto rights over the energy company’s future direction and leadership.

Germany next, and mimesis in action form TheLocal.de:

‘Gate’ named Germany’s English word of the year

The English suffix “gate” has been named Germany’s Anglicism of the Year. The quirky, linguistic award honours the positive contributions English had made to the German lexicon.

Gate is no newbie on German turf, having arrived in 1972 with the reporting of the Watergate scandal.

But Germans were slow to take it into their own language and it wasn’t until many years later that gate gained widespread acceptance as a bona fide suffix.

The London Telegraph drops a bombshell:

Rising risk that German court will block Bundesbank rescue for Southern Europe

  • Court can force German institutions to withdraw support for EU operations, wrecking market credibility for the ECB’s rescue policies

The risk is rising that the German constitutional court will severely restrict the eurozone bond rescue scheme for Italy and Spain, and may reignite the euro debt crisis by prohibiting the German Bundesbank from taking part.

The Frankfurter Rundschau newspaper reports that the verdict has been delayed until April due to the complexity of the case and “intense differences of opinion” among the eight judges.

The longer the case goes on the less likely it is that the court – or Verfassungsgericht – will rubber stamp requests from the German government for a ruling that underpins the agreed bail-out machinery.

On to France and legalized hard times intolerance from TheLocal.fr:

France blocks return of Roma schoolgirl’s family

A French court Tuesday rejected an appeal for residency for the family of a Roma schoolgirl whose deportation sparked outrage and student protests in the country.

A court in the eastern city of Besancon ruled that the public magistrate handling the case had been right in upholding the October 9 expulsion of 15-year-old Leonarda Dibriani, her parents and six siblings to Kosovo.

The Dibriani family can appeal the latest ruling.

The case triggered outrage as Leonarda was taken by the authorities while she was on a school trip. The public magistrate had on January 7 said the decision by local authorities to deport Dibrianis was justified as they had made no attempt to integrate into French mainstream society.

Spain next, and fundamentalist politics from GlobalPost:

Spain’s prime minister pushes ahead with anti-abortion legislation despite almost no popular support

In the midst of a jobs crisis and economic dysfunction, Spain now must face a bitter debate over government plans to radically restrict women’s rights.

Spanish Prime Minister Mariano Rajoy has a lot to worry about.

Despite tentative signs of economic recovery, more than a quarter of the workforce is still looking for a job. The legacy of a burst property bubble has saddled the country with around a million unsold homes and much of the banking sector remains crippled by debt.

In politics, Spain’s most populous and richest region — Catalonia — is threatening to break away after an independence referendum this year while the ruling conservative party reels from graft allegations and another fraud scandal is sapping respect for the monarchy.

Not the best time, then, to launch a bitterly divisive new policy initiative opposed by more than 80 percent of the population, including a significant slice of his own party.

TheLocal.es boosts:

Spain to grow ‘nearly one percent’ in 2014: minister

Spain’s economy is set to grow by “nearly 1.0 percent” in 2014, Economy Minister Luis de Guindos said on Tuesday as the euro nation’s struggling recovery gains traction.

The official government prediction for the year is 0.7 percent growth, following a contraction of 1.2 percent in 2013, according to estimates by the Bank of Spain.

“Growth in 2014 will be nearly 1.0 percent but the revision will be included in our stability programme when it is released before the end of April,” de Guindos told reporters ahead of a meeting of EU finance ministers in Brussels.

El País retreats:

Madrid abruptly cancels plans to outsource management at public hospitals

  • Regional health commissioner Javier Fernández-Lasquetty, the architect of the proposal, resigns
  • Move comes after court rejects petition to lift a cautionary injunction against PP government

Madrid’s Popular Party (PP) regional government on Monday took a U-turn and canceled its planned outsourcing of management and services at six local hospitals – a move that thousands of health professionals had mobilized against.

At the same time, the region’s health chief, Javier Fernández-Lasquetty, who had been pushing the privatization efforts and outsourcing of services, announced he was stepping down from his post.

The developments came just hours after the Madrid regional High Court, which has been studying a lawsuit, denied the regional government’s petition to lift a cautionary injunction it issued last September against the efforts.

ANSAmed moves out, forcibly:

Evictions of mortgage defaulters rise in Spain

  • Almost double those in 2012, reports central bank

The number of evictions due to an inability to meet mortgage payments rose in Spain last year as a result of the economic crisis, and may double the number of those in 2012, reported the country’s central bank on Tuesday.

Some 19,567 evictions were carried out in the first quarter of 2013 compared with 23,774 in the entire year of 2012, the bank said. However, a sharp decline was seen in the number of cases (88) in which the police intervened to carry out the eviction. Over the past few years forced evictions by police had led to over 20 suicides.

Italy next and a new low from TheLocal.it:

Italian wages rise at lowest rate since 1982

Hourly salaries in Italy rose just 1.4 percent on average in 2013 – the lowest rate since 1982 – the national statistics agency, Istat, said on Tuesday.

However, wages increased more than the level of inflation – 1.2 percent – meaning real incomes nudged up by 0.2 percent last year, Istat said.

Italy’s economy stopped contracting in the third quarter of 2013, technically bringing to an end its longest post-war recession, but it is still struggling with an unemployment crisis and rising debt and deficit levels.

Figures released by the Bank of Italy on Monday revealed that the rate of poverty rose from 12 percent to 14 percent between 2010 and 2012, while half of Italian families live on less than €2,000 a month.

Europe Online covers the retreat of the retreat of the founder of the corporate owner of the neighborhood horse racing venue, Golden Gate Fields and a subject of our own frequent stories at the Berkeley Daily Planet:

Billionaire party founder withdraws from Austrian parliament

Austrian-Canadian billionaire Frank Stronach said Tuesday that he would give up his parliamentary seat, as the party he founded ahead of last year’s elections loses popularity amid internal conflicts.

The 81-year-old automotive parts entrepreneur said that, for the time being, he would remain the nominal head of the eurosceptic and pro-business Team Stronach, which he founded in 2012.

Team Stronach initially received high poll ratings, but the party only won 5.7 per cent of the votes in September’s election.

Following the election, a series of party officials were kicked out of Team Stronach amid a debate about Stronach’s authoritarian leadership style.

After the jump, the ongoing and never-ending Greek meltdown, Ukrainian proscription and a pledge, ruble anxieties, interest ramp-ups in Turkey and India, calls for Latin unity and a tegime extension enabled, Thai troubles, Chinese crises averted and anticipated, Abe road platitudes, environmental woes, and Fukushimapocalypse Now!. . . Continue reading

Ticking time bombs: DDT linked to Alzheimer’s


Back when esnl was a toddler, DDT was a ubiquitous presence in America’s towns and villages, with trucks deployed to blast the power over everyone and everything in an effort to keep down mosquitoes to combat various diseases, most notably polio.

DDT, we were told, was harmless to humans, and we children often followed the trucks, acquiring a ghostly white dusting in scenes like this:

And in this 1947 BBC clip from a news segment on fighting malaria in Kenya, a British entomologist actually eats the stuff to show villagers how safe it was:

Only with the publication of biologist Rachel Carson’s best-selling Silent Spring [previously] did folks begin to realize the chemical had a dark side, and played a direct role in the severe decline of bird populations, declines that ended only when use of the chemical was banned.

Well, now the other shoe has dropped, leaving us to wonder just how many other modern “miracles” will we discover only too late have been poisoning us and our children for generations to come..

From Rutgers University via Newswise:

Scientists have known for more than 40 years that the synthetic pesticide DDT is harmful to bird habitats and a threat to the environment.

Now researchers at Rutgers University say exposure to DDT – banned in the United States since 1972 but still used as a pesticide in other countries – may also increase the risk and severity of Alzheimer’s disease in some people, particularly those over the age of 60.

In a study published online today in JAMA Neurology, Rutgers scientists discuss their findings in which levels of DDE, the chemical compound left when DDT breaks down, were higher in the blood of late-onset Alzheimer’s disease patients compared to those without the disease.

DDT – used in the United States for insect control in crops and livestock and to combat insect-borne diseases like malaria – was introduced as a pesticide during WWII. Rutgers scientists – the first to link a specific chemical compound to Alzheimer’s disease – believe that research into how DDT and DDE may trigger neurodegenerative diseases, like Alzheimer’s, is crucial.

“I think these results demonstrate that more attention should be focused on potential environmental contributors and their interaction with genetic susceptibility,” says Jason R. Richardson, associate professor in the Department of Environmental and Occupational Medicine at Robert Wood Johnson Medical School and a member of the Environmental and Occupational Health Sciences Institute (EOHSI). ”Our data may help identify those that are at risk for Alzheimer’s disease and could potentially lead to earlier diagnosis and an improved outcome.”

Although the levels of DDT and DDE have decreased significantly in the United States over the last three decades, the toxic pesticide is still found in 75 to 80 percent of the blood samples collected from the Centers for Disease Control and Prevention. This occurs, scientists Continue reading

Headlines of the day II: EconoEcoPoliFukufolly


Our tour of things economic, political, and ecologic begins with some hopeful opposition from nsnbc international:

Congressmen Oppose Fast Track and Trans-Pacific Partnership – TPP

Last week, House Representative Tim Bishop met with union leaders, environmentalists and various activists to join forces against the fast track being debated in Congress concerning the Trans-Pacific Partnership (TPP).

To the attendees, Bishop said: “I urge my colleagues in Congress to do something, to see to it that we help to create an economy that creates good, solid, middle-class jobs. This agreement takes us in the opposite direction.”

Bishop wrote a letter to President Obama stating that he and 150 other members of the House reject the fast track.

One point of the TPP is to ensure sovereignty among corporations, which is why they have been integral in the creation of the drafts while schmoozing those they deem having power to sway the final document as in their best interests.

Cheapskates from The Hill:

Hotel industry vows to fight back against ‘extreme’ minimum wage bills

The hotel industry says it plans to fight state-by-state this year to defeat “extreme” minimum wage legislation.

The American Hotel & Lodging Association (AH&LA), which includes hotel chains such as Best Western International, Hilton Worldwide, Hyatt Hotels and Resorts and Marriott International, placed wage legislation near the top of its lobbying agenda for 2014.

The group plans to “lead the charge to beat back the growing emergence of extreme minimum and living wage initiatives that are proven job-killers and ultimately hurt those who are building successful careers from the entry level,” according to an advance copy of the agenda obtained by The Hill.

Insert lowest extremity into orifice yet again, from The Verge:

Kleiner Perkins founder apologizes for Nazi comments, goes on wild class warfare rant

  • Tom Perkins says his Richard Mille watch “could buy a six pack of Rolexes”

Appearing on Bloomberg West today, Perkins said that while he regretted his use of the word “Kristallnacht,” he stood by his original message. “I don’t regret the message at all,” he said. “The message is that any time the majority starts to demonize a minority, no matter what it is, it’s wrong, and dangerous. And no good ever comes from it.” He also said “the majority” should not attack the 1 percent. “It’s absurd to demonize the rich for being rich and for doing what the rich do, which is get richer by creating opportunity for others,” he said. But he also drew scorn for saying that his Richard Mille watch, estimated to be worth $379,000, “could buy a six pack of Rolexes.”

Kleiner Perkins responded to Perkins’ original letter with a tweet saying Perkins had not been involved with the firm for years. “We were shocked by his views expressed today in the WSJ and do not agree,” the firm said. “They chose to sort of throw me under the bus, and I didn’t like that,” Perkins said today.

The Associated Press has a fair deal:

Marijuana contests join county fair in Colorado

Colorado’s Denver County is adding cannabis-themed contests to its 2014 summer fair. It’s the first time pot plants will stand alongside tomato plants and homemade jam in competition for a blue ribbon.

There won’t actually be any marijuana at the fairgrounds. The judging will be done off-site, with photos showing the winning entries. And a live joint-rolling contest will be done with oregano, not pot.

But county fair organizers say the marijuana categories will add a fun twist on Denver’s already-quirky county fair, which includes a drag queen pageant and a contest for dioramas made with Peeps candies.

North of the border and a decline from CBC News:

Canadian dollar closes below 90 cents

The Canadian dollar slipped below 90 cents US Monday, its lowest point since July of 2009.

The loonie closed at 89.96 US after gaining ground earlier in the session, as concern over emerging market currencies snowballed.

The steep slide in stocks that began last week slowed on Monday in U.S. markets, but Toronto stocks continued their drop, hurt by falling gold prices and a dip in oil and natural gas prices.

A global warning from a man with something to sell you. From MercoPress:

Coca Cola CEO warns youth unemployment is a great risk for social peace

Unemployment among teens and young adults represents a huge global problem, says Muhtar Kent, CEO of Coca-Cola. In the United States, teenage unemployment totaled 20.2 percent in December and if the situation isn’t addressed, the results could be devastating, the social peace and fabric of the world is in danger.

“Seventy-five million [young] people [globally] are unemployed, do not have the opportunity to work at the moment,” Kent said in a talk at the World Economic Forum in Davos, Switzerland. “That’s bigger than France. It’s a terrible thing when people are coming into the workforce in their late teens and early 20s and don’t have opportunities to create value”. In May 2012, the global youth unemployment rate totaled 12.6%, compared to 4.5% for the adult unemployment rate, according to the International Labor Organization. “If we’re not successful in creating better

On to Europe and a shoulder shrug from Channel NewsAsia Singapore:

Euro chief says no contagion from emerging markets

The eurozone’s recovery will not be affected by contagion from growing fears over emerging economies, Eurogroup chief Jeroen Dijsselbloem said on Monday.

The eurozone’s recovery will not be affected by contagion from growing fears over emerging economies, Eurogroup chief Jeroen Dijsselbloem said on Monday.

The worries over markets such as Argentina and Turkey come as the euro is overcoming the worst of its debt crisis.

“I think they’re quite different, separate issues,” Dijsselbloem told reporters ahead of a meeting in Brussels of finance ministers from the 18 countries that use the euro.

Dismal numeration from New Europe:

31.2 million EU citizens are either looking for better jobs or given up

  • Bloomberg survey reveals serious labour and social crisis in Europe

Labour and social crisis in Europe is deepening as the labour underutilisation rate is increasing according to a Bloomberg survey published on 27 January.

The US financial news agency said that economists predicted that Eurozone unemployment in December will remain at an all-time record high of 12.1 per cent meaning that 19 million European citizens are out of work. However, the Bloomberg survey indicated that labour and social crisis in Europe is much worse, as in the third quarter of 2013, 31.2 million people of all ages in Europe are either frustrated from their current jobs or stopped the job hunt.

According to Bloomberg, the most recent labour underutilization rate in Italy, the third-biggest economy in the Eurozone, was at 24 per cent being more than double the official jobless rate. Di Gilio, who has a bachelor’s degree in electronic engineering and lives with his parents, stooped searching for a job and said Bloomberg journalists. “I don’t want to work myself to death to survive…My friends who do work still need their parents’ support and those who start working often don’t get paid.” Di Gillio stressed, that looking for employment would be worth it if he had the chance to improve his living standards by being able to buy a house and start a family.

Hard times intolerance and familiar targets from GlobalPost:

Roma face mounting discrimination across Europe

Three months after news about a girl alleged to have been abducted by Roma proved false, prejudice continues to grow.

Greece isn’t alone in mistreating Roma, says Eleni Tsetsekou, a consultant on Roma to the Secretary General of the Council of Europe.

“There’s no difference in Roma lives in other European countries, or in how they’re confronted by the majority of people,” she said. “Negative stereotypes are always present and deeply rooted.”

Romanian and Spanish schools also remain segregated between Roma and non-Roma children despite the European court’s decision. In France, police have dismantled Roma shantytowns and deported even minors, violating laws allowing for the free movement of EU citizens.

In Hungary, local governments have turned off water supplies to Roma districts. In Slovakia, towns have erected concrete barriers to isolate Roma neighborhoods. In Bulgaria, the far-right political group Ataka openly blames Roma for the poverty-stricken Balkan country’s economic ills.

On to Britain and an upbeat take from the London Telegraph:

Economy growing at fastest pace since financial crisis

  • Official figures to show UK economy grew by 1.9 per cent last year – the fastest pace since the financial crisis struck seven years ago

The British economy is growing at the fastest pace since the financial crisis struck seven years ago, official figures will confirm on Tuesday.

The latest positive sign on the economy came as Vince Cable, the Business Secretary, said Britain is now experiencing “a real recovery” and business leaders spoke of “real upsurge”.

However, he also warned that there were significant risks to a sustained recovery, particularly the housing market.

BBC News covers the geography of class:

Centre for Cities says economic gap with London widening

The economic gap between London and the rest of the UK is widening because other cities are “punching below their weight”, according to research.

London has created 10 times more private sector jobs than any other city since 2010, analysis by the Centre for Cities found.

The think tank is calling for more power to be devolved to the regions.

From EurActiv, a neoliberal wet dream

David Cameron pledges to rip up green regulations

David Cameron will on Monday (27 January) boast of tearing up 80,000 pages of environmental protections and building guidelines as part of a new push to build more houses and cut costs for businesses of up to £850 million (€1 billion) per year.

In a speech to small firms, the prime minister will claim that he is leading the first government in decades to have slashed more needless regulation than it introduced.

Among the regulations to be watered down will be protections for hedgerows and rules about how businesses dispose of waste, despite Cameron’s claims to lead the greenest government ever.

PetaPixel eliminates a craft we’ve practiced:

UK Newspaper Chain Follows in Sun Times Footsteps, Shutters All Photographer Jobs

Britons tend to take their newspapers a bit more seriously than Yanks, but that hasn’t stopped a newspaper chain there from Chicago Sun-Timesing (yes, we verbed it!) its way to ignominy by firing its entire photography staff.

It’s unclear exactly how many photographers will hit the pavement as a result of the decision by Johnston Press, but the National Union of Journalists counts 24 at newspapers scattered across Scotland and the Midlands.

Faithfully following the script set by the Chicago Sun-Times last year, the axed professionals will be replaced by freelancers, reader-submitted photos and reporters with smartphones.

Norway shows the door, via TheLocal.no:

Record number of foreigners deported

A record number of foreign citizens were deported from Norway last year, after country’s police stepped up the use of deportation as a way of fighting crime.

Some 5,198 foreign citizens were expelled from the country in 2013, an increase of 31 percent since 2012, when 3,958 people were deported.

“It is the highest number we’ve had ever,” Frode Forfang, head of the Directorate of Immigration (UDI), told NRK. “We believe that one reason for the increase is that the police have become more conscious of using deportation as a tool to fight crime.”

Nigerian citizens topped the list of those expelled for committing crimes, with 232 citizens expelled as a punishment in 2013, followed by Afghan citizens with 136 expelled as a punishment, and 76 Moroccans expelled as a punishment.

Germany next, and lumpen-loopholes from TheLocal.de:

A third could miss out on minimum wage rise

  • More than a third of low-paid workers in Germany could miss out on the proposed nationwide minimum wage because of exceptions being put forward by employer organizations and Conservative politicians.

A nationwide minimum wage of €8.50 an hour is due to be introduced in Germany in 2015.

But research released on Monday by the Hans-Böckler Foundation, a centre-left think-tank, found around two million of the more than five million workers who would otherwise have their wages boosted, would miss out on wage rises under plans to exclude certain sectors and workers.

Head of the Christian Social Union (CSU) Horst Seehofer said in December that seasonal workers and pensioners should be excluded. According to the report, such exceptions could turn the minimum wage into a “Swiss cheese” policy – full of holes – and pose a serious threat to the job market.

Keep Talking Greece takes it to the bank:

German Bundesbank: “Capital Levy” on citizens to avoid government bankruptcies

Germany’s Bundesbank said on Monday that countries about to go bankrupt should draw on the private wealth of their citizens through a one-off capital levy before asking other states for help.

“(A capital levy) corresponds to the principle of national responsibility, according to which tax payers are responsible for their government’s obligations before solidarity of other states is required,” the Bundesbank said in its monthly report.

It warned that such a levy carried significant risks and its implementation would not be easy, adding it should only be considered in absolute exceptional cases, for example to avert a looming sovereign insolvency.

On to France with the London Telegraph:

Rise in French jobless claims means Francois Hollande fails to keep his promise

  • French President Francois Hollande had repeatedly promised to get unemployment falling by the end of 2013

French jobless claims rose a further 10,200 in December to hit a new record, dashing President Francois Hollande’s hopes of keeping his pledge to start lowering unemployment by the end of 2013.

Labour Ministry data showed the number of people registered as out of work in mainland France reached 3,303,200 last month, the largest total since records have been kept. It represented an increase of 0.3pc over one month and 5.7pc over one year.

Mr Hollande has struggled to kick-start activity in the eurozone’s second-biggest economy and keep his oft-repeated promise to get unemployment falling by the end of last year.

On the edge with TheLocal.fr:

‘Millions of French workers’ close to burnout

The French are known for the 35-hour week, a guaranteed five weeks of vacation and as keepers of the sacred notion of a proper lunch break. Yet more than 3 million of the working population is on the brink of burning out, a new study revealed. And what about expats?

The French may have a reputation for working as much as they play, but that stereotype is countered by a growing body of evidence that suggests they are slogging away too far too hard.

About 3.2 million French workers, who put an excessive and even compulsive effort into their jobs, are on the verge of burning out, a new study says.

The study from Technologia, a French firm that looks at way to reduce risks to workers, found that farmers, at 23.5 percent, were most prone to excessive work, followed closely at 19.6 percent of business owners and managers.

The all-consuming nature of people’s jobs has left them feeling exhausted, emotionally empty and sometimes physically in pain, Technologia found.

Spain next and a bizarre justification from TheLocal.es:

‘Spain’s abortion law will boost economy’

The Spanish government has prepared a memo claiming that tough new abortion laws will have a “positive impact” on the country’s economy thanks to an increased birth rate, it emerged on Monday.

The claims were part of a draft “impact analysis” study into the effects of Spain’s new abortion reform, put together by the country’s justice ministry.

Spain’s conservative Popular Party hopes the planned legislation would boost the country’s birth rate rise as abortions would only be possible in cases of rape or when the mother’s life was seriously at risk during pregnancy.

The authors of the study do remark however that the new draft law’s “economic impact is difficult to quantify” and “should not be directly associated with its approval” as that is not its primary objective.

Lisbon next with a mixed result from the Portugal News:

Deficit met but no easing of austerity

Following confirmation by the General Directorate of the Budget that Portugal had met its troika deficit target, Luís Marques Guedes, Minister to the Presidency, added the government would not be easing on its austerity measures.

Marques Guedes said that the exact deficit for 2013 would only be definitively ascertained in March but that the value would be in the region of 5%, significantly short of the troika agreed target of 5.5%.

The Minister went on to dismiss any “illusions” as to scope for relaxing tax hikes and budget cuts and said there remained “a road of effort and of rigour ahead.”

This followed the report that the state had clocked up a provisional deficit of €7.15 billion in 2013 against a target set at €8.9 billion.

Italy next and the class divide from ANSAmed:

Almost half of Italy’s wealth owned by richest 10%

  • Family incomes eroded, poverty up in 2010-2012 says central bank

Between 2010 and 2012, low- and middle-income families in recession-battered Italy have seen their quality of life eroded along with their incomes while the richest have gotten richer, according to a biannual study on family finances released Monday by the Bank of Italy.

Poverty rose from 14% in 2010 to 16% in 2012 amid Italy’s worst postwar recession, with almost half of Italian families living on less than 2,000 euros a month, the central bank report said.

Also in 2012, the richest 10% owned 46.6% of the country’s total net worth, up from 45.7% in 2010 and equal to a 64% concentration of wealth, according to the report.

Only 50% of households have annual incomes higher than 24,590 euros, while 20% of them cope with annual incomes of less than 14,457 euros, or roughly 1,200 euros per month. Just 10% of families make more than 55,211 euros per year, the Bank of Italy said.

TheLocal.it exits:

More Italians flee while migration to Italy falls

The number of Italians leaving their recession-hit country to seek work elsewhere rose sharply in 2012, while incoming migration levels dropped, official figures showed on Monday.

The figures support reports that Italy – hit hard by the financial crisis and rocketing unemployment levels – is losing brain power and labour to other
countries and has also become less appealing a destination for foreigners.

The number of Italians leaving the country rose by 36.0 percent to 68,000 people, up from 50,000 in 2011. They headed primarily for Germany, Switzerland, the United Kingdom and France, the national institute of statistics (ISTAT) said.

More than a quarter of over 24-year-olds emigrating had university degrees, it said. Conversely, the number of immigrants arriving dropped by close to 10 percent in 2012 from a year earlier, to 321,000 people.

After the jump, the Greek meltdown continues, a Ukrainian concession and dark undercurrents, Argentine outrage, a new port for Cuba, a Latin boundary dispute resolved, an Indian crash, Thai troubles, Vietnamese bank fraud, reduced expectations in China, Abenomics woes and an iconic downfall, environmental woes, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoEuroEcoFukuFails


In line with the previous post, we begin today’s compendium of things economic, ecologic, and politic with the idiotic — another clueless quote from the very, very rich, this time via The Verge:

Kleiner Perkins founder says Silicon Valley elite are being treated like Jews in Nazi Germany

Tom Perkins, one of the co-founders of the Silicon Valley powerhouse venture capital firm Kleiner Perkins Caulfield & Byers, is afraid the next Kristallnacht — a night of violence against Jews before the start of World War II — will happen in the Bay Area.

Perkins, who is 81, perceives a “rising tide of hatred of the successful one percent” that mirrors the treatment of Jews in Nazi Germany, he says in a letter to the editor in the Wall Street Journal.

Class tensions in the San Francisco Bay Area recently flared up over the area’s skyrocketing rent and “Google buses,” private luxury coaches that shuttle wealthy tech workers to the office. Perkins specifically calls out the Occupy movement and the San Fransciso Chronicle for perpetuating anti-one percent rhetoric. This “progressive radicalism” is just like the fascist backlash against the Jews, Perkins argues.

On to the purely economic with a warning from CNBC:

US ‘out of ammunition’ to tackle economic ‘rut’: Phelps

The U.S. economy is in a “rut” and has been in stagnation since 1972, a Nobel Prize-winning economist told CNBC.

Edmund Phelps, who was awarded the Nobel Prize for Economics in 2006, said the U.S. government has run out of ideas about how to fix the economy.

“Governments have thrown all sorts of ammunition at it including concocting the housing boom. And we are kind of out of that ammunition and we have to dig deeper if we are going to get out of this rut,” Phelps told CNBC in a TV interview.

Reuters gives us another case of Banksters Behaving Badly, or so it’s claimed:

Exclusive: Bank of America’s trading practices have been probed, filing shows

The U.S. Department of Justice and the Commodity Futures Trading Commission have both held investigations into whether Bank of America engaged in improper trading by doing its own futures trades ahead of executing large orders for clients, according to a regulatory filing.

The June 2013 disclosure, which Reuters recently reviewed on a website run by the securities industry regulator FINRA, sheds light on the basis for a warning by the Federal Bureau of Investigation on January 8.

The warning, in the form of an intelligence bulletin to regulators and security officers at financial services firms, said that the FBI suspected swaps traders at an unnamed U.S. bank and an unnamed Canadian bank may have been involved in market manipulation and front running of orders from U.S. government-owned mortgage giants Fannie Mae and Freddie Mac.

Reuters has since learned that Bank of America’s trading practices regarding Fannie and Freddie are the subject of probes, and that the investigations are ongoing.

From USA TODAY, cause for anxiety:

Why emerging markets worry Wall Street

The big bull market in U.S. stocks is confronted with an unexpected headwind: a fresh bout of financial turbulence in emerging markets.

Wall Street is a world away from Turkey and Argentina and the other developing economies dotting the globe. But recent news of financial tumult and plunging currencies in some emerging markets, coupled with bad memories of past crises over the past 20 years that began in Mexico, Asia and Russia, has imported a boatload of financial angst back to the United States.

Indeed, the great bull market on Wall Street has suddenly run into a stumbling block that few investment strategists were even talking about at the start of the year: swooning currencies and capital flight out of vulnerable emerging markets like Turkey and Argentina.

The financial turbulence, which is being greatly exacerbated by a slowdown in growth-engine China, has raised fears of a potential crisis that could inflict damage on these developing countries’ economies and perhaps infect other nations as well. That lethal combination could ultimately crimp earnings of U.S. multinationals. It could also prompt investors to dump risky assets, a response that already seems to be underway.

Bloomberg admonishes:

BlackRock’s Fink Warns of ‘Too Much Optimism’ in Markets

BlackRock Inc. Chief Executive Officer Laurence D. Fink warned there is “way too much optimism” in financial markets as he predicted repeats of the market turmoil that roiled investors this week.

“The experience of the marketplace this past week is going to be indicative of this entire year,” Fink, 61, told a panel at the World Economic Forum in Davos, Switzerland today. “We’re going to be in a world of much greater volatility.”

Fink, who runs the world’s largest asset manager, spoke after a selloff in emerging markets that was triggered by concern about China’s economic growth and the Federal Reserve’s tapering of its monetary stimulus later this year. The MSCI World Index slid the most this week in five months.

The London Telegraph chimes in from on high:

Emerging market rout turns serious, punctures exuberance in Davos

  • IMF’s deputy-director says the Fund is watching the violent gyrations around the world “very carefully”

The worst emerging market rout in five years has raised fresh fears of global contagion, puncturing the mood of exuberance at the World Economic Forum in Davos.

Brazil’s President Dilma Rousseff sought to reassure investors that this week’s currency collapse in Argentina would not spread to the Brazilian real, insisting that all contracts would be honoured and that foreign funds would be “treated well”.

“Today, the stability of our currency is a central value of our country,” she said. The real has weakened by 20pc against the dollar this year, breaking through the crucial line of 2.40 in trading on Friday.

The IMF’s deputy-director, Min Zhu, said in Davos that the Fund is watching the violent gyrations around the world “very carefully”, saying the effect of bond tapering by the US Federal Reserve is causing global liquidity to dry up.

Another ominous warning, this time from The Guardian:

ILO warns young hit hardest as global unemployment continues to rise

  • International Labour Organisation says firms are increasing payouts to shareholders rather than investing in new workers

The world could face years of jobless economic recovery, with young people set to be hit hardest as global unemployment continues to rise this year, a report from the International Labour Organisation warns.

As the World Economic Forum kicks off in the Swiss town of Davos on Wednesday with a focus on growing inequality, the ILO has highlighted a “potentially dangerous gap between profits and people”.

The UN agency forecasts millions more people will join the ranks of the unemployed as companies choose to increase payouts to shareholders rather than invest their burgeoning profits in new workers.

And from Jiji Press, more job killing pushed for the fast-track:

Japan, U.S. Confirm Cooperation for Early TPP Accord

Japanese Minster of Economy, Trade and Industry Toshimitsu Motegi and U.S. Trade Representative Michael Froman agreed Saturday that the two countries will continue cooperation in helping conclude Trans-Pacific Partnership free trade talks as early as possible, Motegi told reporters after the meeting.

At the meeting held in the Swiss resort of Davos, Motegi called on the U.S. side to show flexibility for the early conclusion of the trade talks among 12 countries.

Froman responded by saying that both Washington and Tokyo should flex their muscle, according to Motegi.

On to Europe and bankster wishes from the Irish Times:

Draghi favours quick break in link between sovereign and bank debt

  • Leaders have taken euro out of crisis despite end-of-the-world scenarios, says Schäuble

European Central Bank president Mario Draghi told global leaders in Davos yesterday he favoured an “accelerated time line” in breaking the link between euro area sovereign and bank debt.

Despite a “largely positive” economic outlook for 2014, he warned of a punishing market reaction if euro countries rolled back their reforms.

Discussing a European banking union to oversee and wind up banks, Mr Draghi said struggling institutions could access public money after bailing in creditors.

BBC News misses the number:

Davos 2014: Eurozone inflation ‘way below target’

The head of the International Monetary Fund (IMF) has warned that deflation remains a real risk to economic recovery in the eurozone.

Despite signs of recovery across the world, Christine Lagarde said that potential risks must not be ignored. One of these was the fact that eurozone inflation, at 0.8%, remained “way below” the 2% target set by the European Central Bank (ECB).

She was speaking on the final day of the World Economic Forum, in Davos.

On to Britain and more austerian misery from The Independent:

‘Bedroom tax’ and benefits cuts draining councils’ emergency funds

  • Authorities had been forced to dip into funds allocated to other services to cope with the surge in numbers of households appealing for help

Councils have been hit by a dramatic increase in requests for emergency financial help from people struggling to make ends meet following the introduction of the “bedroom tax” and other cuts to benefits.

More than 200,000 contacted their town halls in the six months after the latest benefits squeeze came into effect, the Local Government Association has estimated.

It also said that many authorities had been forced to dip into funds allocated to other services to cope with the surge in numbers of households appealing for help.

The parliamentary outs long for the good old days, via RT:

UK shadow govt eyes reintroducing 50% tax rate for top earners

Shadow Chancellor Ed Balls says Labour will reintroduce the 50 percent tax rate for people earning over £150,000. This comes as part of an election vow, together with promises to balance the government’s books and to clear the budget deficit.

A promise to bring back the tax on bank bonuses and reduce pension tax relief for the highest earners came in a speech to the Fabian Society Balls delivered on Saturday. However, he admitted that these measures would not be enough to balance the books.

“And when the deficit is still high, when tough times are set to last well into next parliament, when for ordinary families their real incomes are falling and taxes have risen, it cannot be right for David Cameron and George Osborne to have chosen to give the richest people in the country a huge tax cut,” he said.

The last Labour government, under Gordon Brown, raised the upper tax band from 40% to 50% in response to the recession in 2010, but the coalition cut it back to 45% in April 2013.

And from the Lancashire Telegraph, expressive downsizing:

Thwaites sign leaves Blackburn brewery bosses redfaced

BREWERY bosses were left red faced when their iconic lighted sign was turned into a profanity.

Some of the Thwaites Brewery letters atop the Blackburn building fell into darkness as people left town centre shops and offices last night.

With just the words H, I and E blacked out, the embarassing message was broadcast to the entire town.

It comes after news this week that the brewery is to axe up to 60 jobs.

The sign in question, via Nothing to do with Abroath [and, yeah, th word’s sexist, but there were just those letters to work with, so we’ll give a pass and a smile]:

BLOG Twat

On to Sweden and a refreshing note from CBC News:

Bastion of tolerance, Sweden opens wide for Syria’s refugees

  • Asylum offer testing Swedes’ patience, but forcing Europe to respond

On the northern fringes of Europe, Sweden has offered its hand to more Syrian refugees than any other Western nation, granting those who make it here permanent residency. And while its generosity has caused some tensions on the home front, including a modest rise in the anti-immigrant right, that has not stopped the Swedish government from lobbying its European counterparts to open their doors as well.

By way of contrast, here’s how Carlos Latuff sees the immigration policies of Greek Prime Minister Antonis Samaras:

Samaras’ anti-immigration policy

Samaras’ anti-immigration policy

From Deutsche Welle, fighting the right:

Demonstrations against Viennese right-wing ball turn violent

  • Several protesters have been arrested during protests against a ball in Vienna that is a traditional venue for right-wing figures. Police reported a number of arrests and cases of vandalism.

Police in the Austrian capital, Vienna, say they arrested about a dozen people on Friday evening after initially peaceful protests, involving some 6,000 demonstrators, against the so-called Academics Ball (Akademikerball) in the city’s Hofburg palace turned violent.

“We have several arrests and also injured police officers,” a police spokeswoman said. Police also reported damage to storefronts and at least one police vehicle.

Police closed off large sections of the inner city ahead of the ball, which forms the focus for left-wing protests every year. Parts of the area were also closed to journalists, a move that drew criticism from Austrian news organizations as limiting media freedom.

On to Paris and holding steady with TheLocal.fr:

Moody’s maintains French debt rating

Moody’s held its French credit rating at Aa1 Friday but maintained a negative outlook, days after President Francois Hollande announced a batch of business-friendly measures to fire up growth.

The US agency affirmed the bond rating one notch below the top AAA rating.

Moody’s voiced scepticism about the reforms Hollande announced earlier this month, a “responsibility pact” which includes lowering labour taxes in exchanges for fresh hiring by companies.

“The implementation and efficacy of these policy initiatives are complicated by the persistence of long-standing rigidities in labour, goods and services markets as well as the social and political tensions the government is facing,” the agency said in a statement.

But the London Telegraph sounds an alarm with a backhanded compliment:

France could destroy the euro, says Christopher Pissarides

  • Nobel laureate believes the ability of France to reform will decide the eurozone’s fate

France could destroy the euro if the government’s gamble on supply side reforms fails to pull the economy out of its chronic malaise, Nobel laureate Sir Christopher Pissarides has warned.

Sir Christopher, who won the the 2010 Nobel Prize for economics, said the ability of Europe’s second largest economy to implement sweeping changes would decide the fate of the single currency.

He warned French president Francois Hollande’s special blend of “supply-side socialism” would leave the fragile economy vulnerable to shocks for several years.

A more upbeat take from Independent.ie:

Schaeuble ‘very optimistic’ on France economy after Hollande plans

GERMAN Finance Minister Wolfgang Schaeuble said today that he was optimistic France would emerge stronger once it implements the economic reforms announced last week by President Francois Hollande.

“France is and remains a strong country and France will make the right decisions,” Schaeuble said at the World Economic Forum in Davos in response to a question about whether Germany’s neighbour had done enough to bolster its struggling economy.

“We’ve seen that the French president has made the necessary decisions and I think it is the right path,” Schaeuble added. “I am very optimistic that the role of France will be strengthened through this and that we can bring Europe forward together.”

And from FRANCE 24, wiseguys on the farm:

Organised crime targets French countryside

On January 21, French gendarmes broke up a highly specialised international criminal organization. It wasn’t robbing armoured cars, luxury jewelry stores in Place Vendôme or tourists on the Paris Métro – it was stealing tractors.

The gang had mainly targeted dealerships for John Deere farm machinery, later selling the stolen tractors in Germany, Hungary and Romania.

The robbery that led to the network’s undoing occurred on the night of November 2-3, 2012, when three tractors were stolen from a farm machinery dealership in Haute-Vienne in the centre of France. Despite the apparently unusual nature of the crime, the local police quickly realized that this was not an isolated phenomenon. They suspected the existence of a criminal organization, and passed the case to the gendarmerie’s Central Office for the Fight against Itinerant Crime, which uncovered a network of international scope.

Off to Spain and business as usual from El País:

Tech giants taunt the taxman

  • Major US technology groups paid Spain’s revenue agency just 1.2 million euros in 2012
  • Apple, Google, Amazon, Facebook, eBay and others use fiscal engineering to avoid payments

All the major US technology groups continue to dodge the Spanish taxman. The fiscal engineering tactics developed by their advisors allow them to pay hardly any tax on their business operations in Spain. Financial data for the main Spanish affiliates of Google, Apple, Amazon, Facebook, Yahoo, eBay and Microsoft show that their joint provisions for tax on profits in 2012 — the last year for which figures are available — was just 1,251,608 euros. That’s to say: 1.2 million in taxes among seven giants of the industry.

This aggregate figure is not taken from their tax filings but from their annual accounts, which must be deposited at the Spanish Business Register, and which reflect the money that the companies provision in a given year for tax on profits.

This aggregate figure conceals the fact that some companies paid taxes while others claimed tax credits or deferred tax payments after incurring losses. The accounting provisions may slightly differ from the actual tax filings because of timing issues.

thinkSPAIN departs:

Exodus of foreign residents from Spain rises 13-fold in one year

FOREIGN residents in Spain who have left the country due to lack of work have multiplied in number by 13 in the last year, according to the National Institute of Statistics (INE).

By the end of 2011, a total of 15,229 non-Spaniards had returned to their countries of origin or moved to other nations altogether due to being unable to find a job – but by the end of 2012, this number had grown to 190,020.

Figures for 2013 will not be known until this time next year.

And El País looks for help from above:

Saint “might help Spain out of crisis,” says interior minister

  • Jorge Fernández Díaz says he is convinced 16th-century nun is “interceding”

Interior Minister Jorge Fernández Díaz on Friday disclosed the existence of a previously unknown factor that might help Spain pull out of its deep economic crisis.

Speaking at the tourism fair FITUR in Madrid, Fernández Díaz said he was convinced that Saint Teresa of Ávila, the 16th-century nun, is “interceding” for Spain “during these harsh times.”

The revelatory statement was part of the presentation of “Huellas de Santa Teresa” (or, Traces of Saint Teresa), a project to celebrate the 500th anniversary of her birth through a tour of 17 cities where the saint established outposts for the Discalced Carmelites, a branch of the Carmelites that she founded.

While thinkSPAIN downsizes:

Coca-Cola staff facing redundancy go on strike

STAFF at the four Coca-Cola factories due to be shut down in Spain have gone on an ‘indefinite’ strike after hearing the firm planned to axe 1,250 jobs.

The plants in Fuenlabrada (Madrid), Alicante, Palma de Mallorca and Colloto (Asturias) are set to go at the end of February and 500 employees will be relocated whilst the rest will join the dole queue.

A series of demonstrations are planned by the Fuenlabrada workers, and it is expected staff from the other three plants will join in.

The company, Coca-Cola Iberian Partners, is financially healthy, but wants to ‘consolidate’ its operations by centralising production more ‘to improve efficiency’.

After the jump, the Greek crisis continues, Ukrainian compromise, Indian economic woes and cola wars, Thai elections, Singapore in a sling, Chinese inflation and austerity, Japanese bankster profits, toxic microbeads in California water, tar sands pushes, purple GMNO tomatoes, and Fukushimapocalypse Now!. . . Continue reading

Plutopia: Bombmaking cities of the U.S., U.S.S.R.


A stunning talk by University of Maryland historian Kate Brown, author of Plutopia: Nuclear Families, Atomic Cities, and the Great Soviet and American Plutonium Disasters, about the deadly consequences for the plutonium-making high security cities in the two principal Cold War adversaries.

From the wonderful collection of videos at TalkingStickTV:

Kate Brown — The Great Soviet and American Plutonium Disasters

From an account by the Kennan Institute’s Mattison Brady about a talk Brown presented there:

Brown observed that Chernobyl and Fukushima were disasters that “involved big meltdowns and occurred while the cameras were running.” That is, they were accidents that involved total failure of the plants and could not be hidden or covered up. The disasters at Hanford [Washington] and Maiak, however, were catastrophes “in slow motion” and, more importantly, were not truly accidents. They were, Brown contended, “intentional – part of the normal working order.” Brown did not, however, paint a picture of simple recrimination for the plant managers. Rather, she illustrated the dangerous combination of misinformation, miscommunication, hopefulness, and, above all, pressure that contributed to many of the recurring mistakes made at each plant.

The two plutonium plants and, by extension, their constituent populations “orbited each other and were produced in each other’s image.” Each time the project in one country was in danger of having its budget cut, the other would make some significant breakthrough, which would in turn spur production at the other. The rivalry fueled the growing arms race and ensured their continued existence and funding. The constant atmosphere of fear and pressure led each of the plants to taking dangerous short cuts to meet the mushrooming production goals.

One such shortcut was the length of time used uranium fuel was allowed to cool before being processed. This fuel, pulled from the cooling ponds long before the recommended 90-day period, was called “green” and, when processed, would release vastly more radioactive iodine than fuel left to cool longer. War-time pressure in 1944 called for this cooling period to be minimized, but the post-war arms race meant that the Soviet Maiak plant ran green fuel for many years and that in 1949 the Hanford plant ran a dangerous experiment with green fuel (called the “Green Run”) to see how they could trace the hot radioactive isotopes as they scattered across eastern Washington State.

Headlines of the day II: EconoEcoGrecoSinoFuku


Today’s compendium of things economic, political, and environmental begins in the U.S. with a weighty entry from Pacific Standard:

Grand Obese Party?

Researchers have found a statistically significant correlation between support for Mitt Romney and a pudgy populace.

Seems Republicans really are the party of fat cats.

Writing in the journal Preventative Medicine, a pair of University of California-Los Angeles researchers examined county-level obesity rates and voting patterns. After controlling for various factors known to influence weight, such as poverty and educational attainment, they found a small but statistically significant correlation between support for 2012 presidential candidate Mitt Romney and a pudgy populace. Specifically, a one percent increase in county-level support for Romney corresponds to a 0.02 percent increase in age-adjusted obesity rates.

The researchers argue this reflects poorly on the Republican party’s emphasis on “personal responsibility” for reducing obesity risk. Successful fat-fighting strategies “will necessarily involve government intervention,” they argue, “because they involve workplace, school, marketing and agricultural policies.”

Bigger government or bigger waistlines: The choice is yours.

From the Los Angeles Times blowback cosmetics:

Tech industry in San Francisco addresses backlash

Tech industry leaders launch a goodwill campaign in San Francisco, promising to create more jobs and affordable housing.

Their first stab at reconciliation: addressing complaints about the 18-foot-tall shuttles that clog narrow streets and block city bus stops. The shuttles frequently cause delays for city buses, making some residents fume that they have to cool their heels in old dingy vehicles while those who work for some of the world’s wealthiest companies get plush seats, tinted windows, air conditioning and Wi-Fi.

The standoff came to a head this week when San Franciscans turned out for a noisy public hearing to assail a pilot program to charge the shuttles a small fee for using city bus stops. They demanded that the city address the growing economic inequality.

The hearing came just hours after dozens of protesters blocked a bus bound for Google and another bound for Facebook for about 45 minutes, hanging a sign on one that read “Gentrification & Eviction Technologies.”

More from Salon:

When companies break the law and people pay: The scary lesson of the Google Bus

  • All over America, big corporations flout laws or even make their own, while ordinary people face harsh penalties

Ever since Rebecca Solnit took to the London Review of Books  to ruminate on the meaning of the private chartered buses that transport tech industry workers around the San Francisco Bay Area (she called them, among other things, “the spaceships on which our alien overlords have landed to rule us,”) the Google Bus has become the go-to symbol for discord in Silicon Valley.

From the Los Angeles Times, a new Bay Area bankster for the University of California:

UC’s new investment chief’s compensation could top $1 million

The hiring of Canadian investment fund exec Jagdeep S. Bachher and his pay package trigger little discussion, but two regents oppose paying new Berkeley provost $450,000 a year.

The UC regents on Thursday hired an executive of a Canadian investment fund to be the chief manager of the university system’s $82 billion in endowment and pension investments and will pay him more than $1 million a year if he achieves good returns.

Although that pay package triggered little public discussion, the salary for another new executive hire attracted more opposition at the regents meeting here. Some regents opposed the $450,000-a-year salary for Claude Steele, who is becoming UC Berkeley’s provost and second-in-command. They complained that the pay is higher than that of some chancellors.

For the new investments chief, Jagdeep S. Bachher, the regents approved a $615,000 base salary and set a maximum total payout of $1.01 million if UC investments perform well. That would be slightly less than the $1.2 million that Marie N. Berggren was paid in 2012, her last year before she retired in July. The compensation comes mainly from investment returns, not tuition or tax revenues, officials said.

But the real bucks go elsewhere, says BBC News:

JP Morgan boss Jamie Dimon pay rises to $20m in 2013

The chairman and chief executive of JP Morgan, Jamie Dimon, will be paid $20m (£12.1m) for the past year’s work.

Mr Dimon’s pay was cut to $11.5m in 2012 following huge trading losses. This was half the $23m he received in 2011.

JP Morgan’s profits fell 16% last year, after costs resulting from legal issues dented the bank’s figures.

Mr Dimon was paid $1.5m as a basic salary, and an additional $18.5m in shares, the company said.

And more good news for banksters from Al Jazeera America:

Holder: US will adjust banking rules for marijuana

  • News comes as Texas Gov. Rick Perry announces he will support policies that favor marijuana decriminalization

Attorney General Eric Holder said Thursday that the Obama administration plans to roll out regulations soon that would allow banks to do business with legal marijuana sellers.

During an appearance at the University of Virginia, Holder said it is important from a law enforcement perspective to give legal marijuana dispensaries access to the banking system so they don’t have large amounts of cash lying around.

Currently, processing money from marijuana sales puts federally-insured banks at risk of drug racketeering charges. Because of the threat of criminal prosecution, financial institutions often refuse to let marijuana-related businesses open accounts.

Mixed news for workers from CNBC:

US manufacturing growth slows in January: Markit

U.S. manufacturing growth slowed in January for the first time in three months, hobbled by new orders, though a recent trend of stronger growth appeared to be intact, an industry report showed on Thursday.

Financial data firm Markit said its preliminary U.S. Manufacturing Purchasing Managers Index dipped to 53.7 from December’s reading of 55.0. Economists polled by Reuters expected no change.

Slower rates of output and new order growth were the main factors behind the fall, the survey showed. Output slipped to 53.4 from 57.5 while new orders fell to 54.1 from 56.1.

And the company run by America’s richest family runs into rough waters, via Quartz:

Chinese state TV has accused Wal-Mart of skirting inspections to sell even cheaper goods in China

China Central Television claims to know the secret behind Wal-Mart’s low prices at its stores in China. The state-owned TV network, better known as CCTV, said on Jan. 23 that the US retailer has been allowing products from unlicensed suppliers on to its shelves, and thus bypassing quality and safety checks.

Wal-Mart’s response (paywall), the Wall Street Journal reports, is that the company only fast-tracks items from suppliers with which it has already been doing business, and then only in certain limited cases. (Wal-Mart hasn’t responded to questions from Quartz.)

The four-minute CCTV report, titled “Wal-Mart’s ‘special channels’ secret,” features shots of what CCTV says are company documents that show managers signed off on over 600 products that lacked licenses for distribution. The program says the store passes off sub-standard goods as belonging to well-known brands.

Reuters has more bad news for Wal-Mart workers:

Wal-Mart’s cuts 2,300 jobs at Sam’s Club

Wal-Mart Stores Inc said on Friday it had cut 2,300 jobs, or roughly 2 percent of the total workforce at its Sam’s Club retail warehouse chain, its biggest round of layoffs since 2010.

The action follows a lackluster U.S. holiday season and layoffs announced earlier this month from U.S. retailers Macy’s Inc, J.C. Penney Co Inc and Target Corp.

Wal-Mart company spokesman Bill Durling said in a telephone interview that the cuts will include hourly workers and assistant manager positions.

Bumpy waters from Bloomberg:

S&P 500 Slides Most Since June on Emerging Market Turmoil

U.S. stocks sank the most since June, capping the worst week for benchmark indexes since 2012, as a selloff in developing-nation currencies spurred concern global markets will become more volatile.

The Standard & Poor’s 500 Index (SPX) retreated 2.1 percent to 1,790.31 at 4 p.m. in New York to close at the lowest level since Dec. 17. The benchmark index declined 2.6 percent this week. The Dow Jones Industrial Average (INDU) slid 318.24 points, or 2 percent, to 15,879.11 today. The 30-stock gauge lost 3.5 percent this week. Trading in S&P 500 stocks was 52 percent above the 30-day average at this time of day.

Background from Nikkei Asian Review:

Emerging-nation currencies fall in chain reaction

Behind this development are concerns that investors will pull their money out of emerging markets because the U.S. has started to taper its quantitative monetary easing this month.

Argentina’s peso plunged 12% on Thursday. Earlier that day, a senior Argentine government official told reporters that the nation’s central bank did not buy or sell dollars on Wednesday. A view that the bank is allowing the peso to slide spurred further selling of the currency.

The peso’s drop triggered a rush to exchange funds in emerging-nation currencies to dollars and yen. The Turkish lira weakened to around 2.3 to the dollar on Friday, a record low. The currency has declined about 7% so far this year. Local media reported that the Turkish central bank intervened Thursday but to no avail. Meanwhile, the yen strengthened to the 102 range against the greenback.

The South African rand dropped to the lowest level in five years against the dollar. A strike by workers at a key platinum mine led to concerns that a slowing of resource exports would hamper the country’s ability to acquire foreign exchange reserves, fueling sales of the rand.

From Reuters, a graphic look at the Argentine currency’s collapse:

BLOG Peso

The Financial Express frets:

World Economic Forum: Fear of China ‘hard landing’, Japan row, stalks Davos

The risk of a hard landing for the economy in China as well as the threat of military conflict with Japan stoked fears at the World Economic Forum in Davos today.

Days after the world’s second-largest economy registered its worst rate of growth for more than a decade, top politicians and economists at the annual gathering of the global elite said the near-term outlook was bleak.

Li Daokui, a leading Chinese economist and former central bank official, said: “This year and next year, there will be a struggle, a struggle to maintain a growth rate of 7-7.5 per cent, which is the minimum to create the 7.5 million jobs every year China needs.”

And The Guardian counts seats:

The 85 richest people in the world: men still in the driving seat

  • Women need only seven seats, mostly on the bottom deck, on the £1tn double-decker bus revealed by Oxfam this week

The list of 85 shows that if this group – whose wealth tops £1tn – can squeeze on a double decker bus, then Mexico’s telecoms magnate Carlos Slim swaps driving responsibilities with Microsoft’s Bill Gates and the tiny group of wealthy women need only seven seats, mostly on the bottom deck. Photograph: Peter Macdiarmid/Getty Images

At its snowy retreat in the Swiss Alps, the World Economic Forum is debating how much inequality is too much. The aid charity Oxfam pointed out that a glance through the richest 100 people in the world shows that the pendulum has already swung heavily in favour of an elite group: the top 85 in the Forbes rich list control as much wealth as the poorest half of the global population put together.

A look down the list of 85 shows that if this group – whose wealth tops £1tn – can squeeze on a double decker bus, then Mexico’s telecoms magnate Carlos Slim swaps driving responsibilities with Microsoft’s Bill Gates and the tiny group of wealthy women need only seven seats, mostly on the bottom deck.

Another global story from New Europe:

IEA: Main Oil and Gas Flows To Move To Asian Region

A working visit to Astana, International Energy Agency (IEA) Executive Director Maria van der Hoeven presented the World Energy Outlook 2013, saying that in the nearest future the main trade flows of oil and gas will move to the Asian regions, which will change the geopolitics of oil.

“Northern America’s need for import of crude oil will practically disappear by 2035, and that region will become a key exporter of petroleum products. At the same time, Asia will become a center of the world’s crude oil market: large volumes of crude will be delivered to this region through a few strategically important transport routes” van der Hoeven said.

According to her, crude oil will be supplied to Asia not only from the Middle East, but also from Russia, the Caspian region, Kazakhstan, Africa, Latin America, and Canada.

The Global Times brings the focus to Europe:

Euro zone recovery fragile, fiscal consolidation should continue, says ECB president

The European Central Bank (ECB) President Mario Draghi said in Davos on Friday that the recovery of the euro zone economy is fragile and fiscal consolidation should continue.

Addressing the 44th World Economic Forum Annual Meeting, Draghi said, “the bottom line of this is that we have seen the beginning of a recovery which is still weak, which is still fragile and it’s still uneven.”

According to Draghi, improvements have been witnessed on the financial markets and the “very accommodative” monetary policy was being passed through to the real economy.

A bankster rules struggle from New Europe:

EU finance ministers, MEPs set for clash over bank resolution rules

European finance ministers will hold talks Tuesday on the resolution mechanism for failing Eurozone banks agreed in late December. Greek presidency sources confirmed that the new ECOFIN president, Ioannis Stournaras, will inform his counterparts on the positions of the European Parliament on the current agreement, as presented in a recent letter addressed to the presidency. In their letter, the MEPs make it clear that they will block SRF’s intergovernmental part.

Back in December the 28 EU finance ministers agreed to a general approach on the rules to close failing banks, which included the creation of an initial 55 billion-euro resolution fund over the next 10 years using bank levies. The formation and the functioning of the fund would be set up in a separate agreement among nations, excluding EU’s lawmakers.

The European Parliament also asks the simplification of the functioning of the single resolution board, so as the decision on the closure of a failing bank to be taken by the European Commission and not by the Member States.

More rule-wrangling from EUobserver:

EU audit reform reduced to ‘paper tiger’

The EU is close to overhauling rules for financial auditors, but critics say the reform will be a paper tiger unable to break up the dominant position of the world’s four biggest audit firms.

The legal affairs committee of the European Parliament on Tuesday (21 January) approved a draft agreement struck late last year with member states and the European Commission on the so-called audit reform package.

A jaundiced eye cast by the London Telegraph:

EU bank bonus rules will be ‘avoided’, says Fitch

  • The European Union bonus cap will prove ineffective in reducing banking industry pay, according to Fitch

Banking industry pay will not fall as a result of the incoming European Union cap on bonuses, according to Fitch.

The ratings agency warned that an “inconsistent” approach in the enforcement of the cap, as well as banks using loopholes in the new law to “avoid” paying lower bonuses, would mean overall compensation levels are unlikely to decrease.

In a report, Fitch pointed to a survey by the German financial regulator of the implementation of the cap among domestic banks that showed many lenders continuing with their old pay practices.

Corporate Europe Observatory looks at the bigger picture:

A union for big banks

Far from being a solution to avoid future public bailouts and austerity, Europe’s new banking union rules look like a victory for the financial sector to continue business as usual.

With the financial crisis, member states took over massive debts originated in the financial sector to save banks. Four and a half trillion euros had been risked for bailouts – and the final bill was 1,7 trillion euro. Not only did this send national economies spiralling downwards and set off a public debt crisis, it also led to a regime of harsh austerity policies, imposed by the EU institutions and the IMF as conditions for loans.

With that in mind, the banking union sounds heaven sent. It is claimed to make the banking sector safe, and should there be problems, a new system would ensure failed banks are wound down in an orderly manner with expenses paid by the banks themselves, with only a minimal cost to the public purse. An end not only to financial instability, but to austerity loan programmes as well.

If all this sounds unreal, it’s because it is. The banking union has been oversold as a fix to the banking sector. It may sound appealing that in the wake of the financial crisis, the potential power of EU institutions should be employed to address the dangers of financial markets. But in practise, the model adopted has deep flaws and carries so many risks, that one might ask if the point is to protect the public or serve the big banks.

On to Britain and hints of a failed divorce from EUbusiness:

Britain’s EU referendum suffers big setback

Britain’s planned 2017 referendum on whether to stay in the European Union was close to collapse Friday after Prime Minister David Cameron’s party suffered a major setback.

A vote in the House of Lords, the upper chamber of parliament, means that a bill proposing the in/out referendum looks likely to run out of time to become law. Members of the Lords voted to change the wording of the question that British voters would be asked on the subject of Britain’s membership of the 28-nation bloc.

The original wording of the question as included in the bill was: “Do you think that the United Kingdom should remain a member of the European Union?”

Following fierce debate, members of the Lords voted by a majority of 87 to amend it after determining that question was misleading. They did not introduce an alternative, though one peer proposed: “Should the UK remain a member of the EU or leave the EU?”

Sky News warns:

Nestlé Chair Warns Over UK Exit From Europe

  • Food giant boss Peter Brabeck-Letmathe tells Sky News that withdrawal from the trading bloc could put UK investment at risk.

The consumer goods giant Nestle would be forced to re-evaluate the extent of its presence in the UK if Britain decided to leave the European Union, its chairman has told Sky News.

In an interview during the World Economic Forum in Davos, Peter Brabeck-Letmathe said the company was committed to its business in the UK but that he could not envisage a separation from its biggest trading partner being in the country’s interest.

Nestle, which makes Nespresso coffee capsules and Kit-Kat chocolate bars, employs approximately 8,000 people in the UK and accounts for exports worth roughly £400m. Its other brands include Nescafe, Smarties and Yorkie.

From The Independent, A UC-like salary in the U.K.:

Fury at £105,000 pay rise for Sheffield University boss Sir Keith Burnett after he refused to raise employees’ salaries to the living wage

The decision to award the increase to Sir Keith Burnett, vice-chancellor of Sheffield University – one of the elite Russell Group – has infuriated staff at the institution, who have been told their rises must be limited to just 1 per cent. They have joined national strike action over the award which included a two-hour walkout of lessons and lectures earlier this week.

The package awarded to Sir Keith includes £27,000 in lieu of pension payments after he withdrew from the pension scheme. However, according to accounts, that still leaves him with a 29 per cent rise, or £78,000, the largest in the sector in 2012/13.

The pay rise was awarded at a time when the institution rejected demands for all staff at the university to be paid according to the living wage of £7.65 an hour. Pablo Stern, of the University and College Union at Sheffield, told the Times Higher Education (THE) magazine that Sir Keith’s pay package was “astonishing”. He added: “This university used to pride itself on being a civic institution with a strong community feel. That has disappeared.”

Cooking the books with The Independent:

Treasury accused of resorting to ‘dodgy statistics’ to claim raise in living standards

Treasury ministers came under fire from economists today after they insisted that living standards were finally beginning to rise for the vast majority of workers.

The claim signalled the Conservatives’ determination to combat Labour’s repeated accusations that the country faces a “cost of living” crisis because wages are falling in value in real terms.

However, according to the Treasury analysis, increases in take-home pay were higher than inflation last year for all but the top ten per cent of earners. It coincided with an assertion by David Cameron that Britain was starting to see signs of a “recovery for all”.

The department’s statistics only took income tax cuts into account and excluded reductions to in-work tax credits and other benefit changes, prompting Labour accusations that ministers were resorting to “dodgy statistics” to claim people “have never had it so good”.

On to Ireland and a virtual regulatory plea from TheJournal.ie:

Virtual insanity? Call for Central Bank to regulate BitCoin

  • The Irish Bitcoin Association says that recognising the currency would make it safer for consumers.

Vincent O’Donoghue of the Irish Bitcoin Association today told RTÉ News that the currency should be recognised, so that it would be safer to use.

“We’re calling on the Central Bank to have a close look at it. It’s something for the future.

“IT developing the way it, it would be disingenuous to ignore it.”

Off to Norway with the New York Times:

Amid Debate on Migrants, Norway Party Comes to Fore

In a nation that has long prided itself on its liberal sensibilities, the intensifying debate about immigration and its effects on national identity and the country’s social welfare system has been jarring — and has been focused on the anti-immigration Progress Party, which is part of the new Conservative-led government.

The Progress Party came under intense scrutiny in 2011, when a former member, a Norwegian named Anders Behring Breivik, bombed government buildings in Oslo, killing eight people. He then killed 69 more people, mostly teenagers, in a mass shooting at a Labor Party summer camp on the island of Utoya. Mr. Breivik, who was convicted of mass murder and terrorism, had been a member of the Progress Party, attracted by its anti-Islamic slant, from 1999 until he was removed from the rolls in 2006 for not paying dues, having quit the party because it was not radical enough.

Still, the performance of the Progress Party in the first general elections since the Utoya massacre and its success in winning a place in government have raised some eyebrows; quite unfairly, Ketil Solvik-Olsen, minister of transportation and communication and a deputy leader of the party, said in an interview.

TheLocal.no feels aggrieved:

‘Obama must apologise for envoy gaffe’

Norway’s Progress Party has demanded a personal apology from US President Barack Obama after his nomination for Norway’s new ambassador described its members as “fringe elements” who “spew out their hatred” (PLUS VIDEO).

“I think this is unacceptable and a provocation,” Jan Arild Ellingsen, the party’s justice spokesman, told Norway’s TV2 television channel. “I expect the US president to apologize to both Norway and the Progress Party”.

George Tsunis, a Greek-American property millionaire who was one of Obama’s biggest individual campaign donors, displayed only the scantiest knowledge of Norway at a senate hearing this week ahead of his appointment, describing the Progress Party, which has seven ministers in the government, as if it were a fringe far-right group.

He then referred to the country’s “president”, apparently under the impression that the country is a republic rather than a constitutional monarchy.

USA TODAY voices confidence:

Obama ‘confident’ with ambassador pick despite blunders

President Obama still has confidence in his pick to be the next ambassador to Norway, even after demonstrating that he might need to bone up on Norwegian politics before heading to Oslo.

George Tsunis, managing director of Chartwell Hotels and a major fundraiser for Obama’s 2012 campaign, has been pilloried by Norway’s press after he stumbled over a question about Norway’s Progress Party during his confirmation hearing last week.

Under questioning from Sen. John McCain, R-Ariz., Tsunis seemed to be unaware that Norway’s Progress Party —which has taken a hard line on immigration policy — was part of the government coalition.

The Wire takes the Casablanca route:

Norway Is Shocked That Our Ambassador Nominee Is Clueless About Norway

And an immigrant story with a poignant twist from TheLocal.no:

Locals pay for loved beggar’s Romania burial

A beggar became so popular in the four years he spent on the streets of Tromsø, northern Norway, that when he died locals raised 100,000 kroner ($16,000) to ship his body back home to Romania for burial.

When Ioan Bandac died of lung cancer just before Christmas, he left a note outlining his one final wish – that he be buried in his home city of Bacau, Romania.

And on Thursday, his body was finally laid to rest in one the city’s churchyard,  after a Romanian orthodox service. “It’s fantastic to be here,” Bandac’s Norwegian girlfriend Helena told state broadcaster NRK. “I did not get that long with Ioan — just three and a half years.”

On to France with another hard times intolerance headline, via TheLocal.fr:

French MP avoids prison over Hitler Gypsies rant

A French lawmaker avoided being sent to jail this week over a rant about travellers in which he was caught on camera saying “Hitler did not kill enough”. The MP and town mayor has also managed to keep hold of both of his elected roles.

A French lawmaker was convicted of glorifying crimes against humanity for saying Hitler “did not kill enough” gypsies, but avoided prison at his sentencing on Thursday.

MP Gilles Bourdouleix uttered the remarks in July 2013 as he confronted members of a travelling community who had illegally set up camp in the western town of Cholet, where he is also mayor.

His remarks left anti-racism campaign groups outraged, as well as most of France and its politicians.

An economic booster shot from France 24:

Helmet Hollande wore for Gayet tryst flies off shelves

A French motorcycle helmet manufacturer has publicly thanked President François Hollande for being photographed wearing their helmet on his way to an alleged secret tryst with actress Julie Gayet.

Hollande, 59, was pictured by paparazzi working for Closer magazine arriving at a Paris address to allegedly meet the famous French actress, while riding pillion on a scooter and wearing a “Dexter” helmet made by French company Motoblouz.

Motoblouz CEO Thomas Thumerelle, who employs 45 people at his plant at Carvin in the northern Pas-de-Calais region, was so delighted he took out a quarter page ad in national daily Liberation (see below) on Wednesday, titled “Thank you Mr President – for having used our helmet for your personal protection”.

On to Spain and another downturn from El País:

Economy shed jobs for sixth year in a row in 2013

  • Unemployment as a percentage of the population rises as thousands exit the labor market

The Spanish economy shed jobs for the sixth year in a row in 2013, official statistics show.

While the job destruction was less intense than in previous years, the loss of 198,900 positions, added to other years’ job cuts, yields an accumulated figure of 3.75 million since the crisis began in 2008.

The figures were released on Thursday as the Bank of Spain confirmed government estimates that the economy grew 0.3 percent in the fourth quarte

More from TheLocal.es:

Spain’s unemployment: Seven shocking facts

  • Spain’s unemployment rate hit 26 percent again this week. Here The Local gives you seven stats that will help you understand just how serious the situation is.

New unemployment figures from Spain’s National Statistic Institute (INE) show that recent macroeconomic improvements in Spain are yet to create new jobs.

While Spain has now clocked up two consecutive quarters of fragile growth, the INE data — based on a quarterly survey of 65,000 homes nationwide known as the EPA — shows the country’s unemployment climbed back up to 26.03 percent at the end of 2013, up from 25.98 percent three months earlier.

Here The Local provides seven statistics that highlight the extent of Spain’s unemployment problem.

  1. Spain has now seen six straight years of job destruction. Some 198.900 jobs disappeared in Spain last year, and 3.5 million have vanished since the country’s crisis began in 2008.
  2. There are 1.832.300 households in Spain where nobody has a job. That is 1.36 percent more than a year earlier.
  3. Some 686.600 households in Spain have now income at all — not even social security. That is twice the figure seen in 2007, or before the crisis struck.

thinkSPAIN electrifies:

Spain’s electricity hikes between 2008 and 2012 were second-highest in the EU after Lithuania

ELECTRICITY bills in Spain went up between 2008 and the end of 2012 more than in any other European Union member State except Lithuania, figures show.

During this four-year period, the cost of power to households and businesses rose by 46 per cent in Spain, and 47 per cent in Lithuania says the European Commission.

Brussels puts this down to rising distribution costs, increases in IVA, or VAT, in EU countries, and ‘eco-taxes’ relating to renewable energy.

And a boost for the arts from El País:

Government announces plans to slash sales tax on works of art

  • Cut in VAT rate to 10 percent could be followed by similar measures to promote culture

Bowing to intense pressure, the Spanish government on Friday announced it was going to lower the value-added tax (VAT) rate charged on transactions involving works of art to 10 percent from 21 percent.

Speaking at a press conference following the weekly Cabinet meeting, Deputy Prime Minister Soraya Sáenz de Santamaría said the move was to bring Spain in line with other countries in Europe, such as Italy and Germany, where the VAT rate on works of art is 10 percent and 7 percent, respectively.

The government controversially increased the VAT rate on all cultural items in 2012, from 8 percent to 21 percent. Asked if the VAT rate on other cultural items would also be cut, Sáenz de Santamaría said the reduction for works of art was a “first step.” “We have to introduce measures to promote Spanish culture and we have brought forward one of them,” she said. Culture Ministry sources said the government was also “studying new measures” for the film industry.

On to Lisbon and an uptick from the Portugal News:

Unemployment levels fall

The number of people registered as being unemployed in Portugal has dropped, while the government has announced plans to encourage business and entrepreneurs within the country in a bid to further boost employment levels.
Unemployment levels fall

The number of unemployed persons registered with the employment office in Portugal dropped by 2.8 percent year on year in December, making the total number of unemployed people 690 535 and marking a fall by 0.2 percent in the month of December.

Monthly data published by the Institute of Employment and Vocational Training ( IEFP ) highlighted that at the end of December there were 20,117 fewer unemployed persons registered with the employment office than a year earlier.

And a presidential boost from the Portugal News:

President upbeat about economic future

Portuguese president Cavaco Silva has said that he is hopeful about the economic future of the country despite a less than positive forecast given by the credit ratings agency Standard and Poor.

Portugal’s president has said that he is convinced that the country will success-fully conclude its bailout this May, adding that he appreciated the heavy sacrifices that continue to be asked of the Portuguese people.

Cavaco Silva said that while Portugal was still a few months away from its Economic and Financial Adjustment Programme object-ives, that he felt there was no reason why the country should not reach these targets successfully. In his speech he also gave a brief summary of 2013, noting that although it had not been “an easy year for Portugal”, the economy had registered some encouraging signs that allowed 2014 to look more “hopeful”.

Italy next with ANSAmed and more privatizations of the commons:

Chunks of Italy’s post office, air agency up for sale

  • Italian cabinet approvals sale of parts of companies

The Italian cabinet has approved decrees to sell large chunks of the post office and its air traffic agency, sources said Friday.

The government has said it wanted to sell off a 40% share of the national postal service, Poste Italiane Spa, for at least four billion euros by the end of the year as part of efforts to raise much-needed capital to offset Italy’s huge debt.

A similar-sized share will be offered in Enav, the Italian air traffic control company.

Economy Minister Fabrizio Saccomanni has said that a larger share of the postal service might be sold later.

Bunga Bunga cutbacks from TheLocal.it:

Berlusconi budget cuts hit models and dancers

Silvio Berlusconi has cut off monthly payments of €2,500 to a host of young women who attended his parties as part of cost-cutting measures by the ageing playboy, Italian media reported on Friday.

The decision could also have something to do with his coming under investigation for witness tampering opened by prosecutors in connection with his conviction for having sex with an underage 17-year-old prostitute.

“He helped us out, me and the other girls,” said Aris Espinosa, 24, one of the models and dancers known as “Olgettine” after the street in Milan, Via Olgettina, where they lived in apartments paid for by Berlusconi.

At one point, a total of 14 young women were living in the apartments and they were heard calling Berlusconi and his accountant in multiple police wiretaps to ask for more cash – referred to as “flowers” or “fuel”.

After the jump, the ongoing debacle in Greece, Ukrainian divisions and hints of compromise, munificence to Mexico, Venezuelan currency woes, Argentine inflation, Indo-Japanese nuke-enomics, Thai and Burmese troubles, Korean elder woes, Japanese promises, environmental woes, and the latest Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II EuroGrecoSinoFuku


Before we begin our collection of headlines covering things economic, political, and environmental, we offer this prelude to the latest Fukushimapocalhpse Now! from Li Feng of China Daily:

BLOG Fukuzilla

We begin with global headlines, first with this from Reuters:

Trust in U.S., other governments plummets after state missteps

Trust in governments worldwide took a dive last year with Washington’s reputation a notable casualty as President Barack Obama grappled with a budget showdown, the Snowden spying crisis and the botched rollout of “Obamacare”.

Just 37 percent of college-educated adults told the Edelman Trust Barometer that they trusted the U.S. government – 16 points down on a year earlier and seven points below the global average.

The United States was not quite at the bottom of the heap as levels of trust in governments in some Western Europe countries including France, Spain and Italy were even lower, but the scale of the American decline was particularly dramatic.

CNBC dons rose-colored glasses:

Bill Gates: There will be no poor countries by 2035

As snowy Davos becomes engulfed in the hustle and bustle of another World Economic Forum, Microsoft founder Bill Gates took the opportunity to deliver an upbeat message in his annual newsletter.

The 25-page report, written by Gates and his wife Melinda, who are co-chairs of the Bill & Melinda Gates Foundation, argued that the world is a better place than it has even been before.

Gates predicted that by 2035, there would be almost no poor countries left in the world, using today’s World Bank classification of low-income countries — even after adjusting for inflation.

TheLocal.ch parties hearty:

‘Horizontal trade’ looks to upswing at Davos meet

In Davos, “shaping new models” is a popular theme for global change at the annual World Economic Forum gathering but on the margins of the event getting under way on Wednesday “shapely new models” are apparently also being sought.

The forum, bringing together presidents, prime ministers, monarchs, corporate tycoons, boffins and Hollywood actors, is also drawing a class of professionals to service, ahem, the needs of the elite.

Call girls, escorts, courtesans, hookers, prostitutes, call them what you will, look to be back in business for the event in the Swiss mountain resort town this year.

After several “rather dead” forum meetings in recent years, the “horizontal trade” looks to be picking up, says Swiss tabloid newspaper Blick, which monitors these kinds of activities.

On to the U.S., starting with a headline from Quartz:

The housing recovery leaves America separate and unequal, once again

Two years into the housing recovery, and a half-century since Martin Luther King fought for racial equality, it’s clear that homeownership doesn’t treat everyone the same.

While millions of homeowners of all races were affected by the burst of the housing bubble, from losing their homes to foreclosure or finding themselves in negative equity, many areas nationwide are now firmly in recovery as home values inch back toward peak levels. But that trend isn’t universal: neighborhoods that are predominantly black or Hispanic continue to lag behind today.

According to research from Zillow, home values in predominantly black and Hispanic neighborhoods are down significantly from their peaks—by 23.3% and 32.6%, respectively. The recovery has been kinder to white and Asian neighborhoods, though, which are down 13.4% and 0.6%, respectively.

The Hill anticipates:

Supreme Court case could destroy pillar of union power

  • Labor unions are at risk of having one of their most successful organizing tactics nullified by the Supreme Court.

On Tuesday, the high court will hear oral arguments in Harris V. Quinn, a case that could upend agreements with state governments that allow taxpayer-funded home-care workers to unionize.

Those deals have helped boost public sector unions in several states at a time when overall union membership is declining.

Business and conservative-leaning groups are pushing the Supreme Court to overturn the deals, arguing they violate the Constitution by requiring workers to punch a union card.

Dust finally settling from the Oakland Tribune:

California foreclosures plunge to eight-year low

California home foreclosure activity plummeted to an eight-year low in the fourth quarter as price gains left fewer owners owing more money than their properties were worth, a real estate research firm said Tuesday.

There were 18,120 default notices filed on houses and condominiums from October through December, down 10.8 percent from 20,314 in the previous three-month period and down 52.6 percent 38,212 from the same period of 2012. It is the lowest number of default notices since 15,337 were filed in the fourth quarter of 2005.

A sharp rise in home values has left fewer people vulnerable to foreclosure. The median sales price for a California home was $364,000 in the fourth quarter, up 22.1 percent from $298,000 a year earlier. It is the fifth straight quarter that the median has risen at least 20 percent from the previous year.

San Francisco Chronicle-ing class warfare:

Protesters block tech buses before SFMTA meeting

Anti-gentrification protesters again blocked tech buses carrying workers out of San Francisco on Tuesday morning. This time, just after 9 a.m., they blocked a pair of shuttles downtown, near Eighth and Market streets and close to City Hall, where later in the day city transportation leaders are scheduled to consider a pilot program that would charge bus operators a fee to use Muni stops — $1 per day per stop.

For some, the buses, used by companies like Google and Apple, have become symbols of income disparity in San Francisco. Others credit the buses with taking cars off the road and reducing congestion and greenhouse gas emissions.

On Tuesday, the few dozen protesters — in front of a large pool of media — surrounded the buses and prevented them from moving. Some plastered a sign to one of the coaches that read “Gentrification and Eviction Technologies” in Google-type script. They chanted, “Stop evictions.” By 9:45 a.m., police had cleared out the crowd and the buses had departed, though their destination was not clear.

Un-Like-ing via Vocativ:

Facebook May Lose 80% of Its User Base by 2017

  • Social networks function like infectious diseases, according to Princeton researchers. They spread fast—and then disappear

Like the Bubonic Plague, Facebook will eventually come to an end.

According to new research from Princeton, which compared the “adoption and abandonment dynamics” of social networks by “drawing analogy to the dynamics that govern the spread of infectious disease,” Facebook is beginning to die out.

Specifically, the researchers concluded that “Facebook will undergo a rapid decline in the coming years, losing 80 percent of its peak user base between 2015 and 2017.”

Dodgy dodging from The Guardian:

US tech firms make eleventh-hour attempt to halt tax avoidance reforms

  • Lobbyists representing leading US technology companies urge thinktank advising G20 not to close international tax loopholes

Silicon Valley has launched a last-ditch attempt to derail plans devised by the G20 group of countries to close down international loopholes that are exploited by the likes of Google, Amazon and Apple to pay less tax in the UK and elsewhere.

The Digital Economy Group, a lobbying group dominated by the leading US digital firms, has written to the OECD, the Paris-based thinktank tasked by G20 leaders with drawing up reforms, saying it is not true that communications advances have allowed multinational groups to game national tax systems.

Jiji Press embraces the darkness:

Japan, US Agree on Effort for Early TPP Deal

Akira Amari, Japanese minister in charge of Trans-Pacific Partnership negotiations, and U.S. Trade Representative Michael Froman agreed Monday to make efforts for an early conclusion of the regional free trade talks.

The agreement came at telephone talks between the Japanese and U.S. ministers held late in the night.

After the talks, Amari told reporters that he and Froman share the view that the two countries need to cooperate in helping conclude the TPP negotiations at the next ministerial meeting, likely to be held in late February.

While Deutsche Welle displays rare reserve:

EU freezes part of transatlantic trade negotiations with US

  • The EU has put one area of its negotiations with the US for a transatlantic free trade deal on hold. Brussels has expressed concern over provisions that would allow corporations to sue governments in private court.

The European Union on Tuesday temporarily halted one area of its free trade negotiations with the US, giving member states three months to provide input on provisions that would allow corporations to sue governments over violations of the potential trade deal.

“I know some people in Europe have genuine concerns about this part of the EU-US deal,” said EU Trade Commissioner Karel De Gucht in a press release. “Now I want them to have their say.”

“Some existing arrangements have caused problems in practice, allowing companies to exploit loopholes where the legal text has been vague,” De Gucht continued.

Monetary impoverishment from the London Telegraph:

Euro ‘increasing unemployment and social hardship’, says EC

  • Deepening economic divisions between North and South, rich and poor eurozone countries threaten to undermine the European Union itself, report states

Europe’s single currency is fuelling inequality, and the loss of sovereignty entailed in eurozone membership has led to “increased unemployment and social hardship” in many countries, a European Commission report has revealed.

The 496-page report, “Employment and social developments in Europe 2013″, warns that deepening economic divisions between North and South, rich and poor eurozone countries threaten to undermine the European Union itself.

The stark findings, published by Laszlo Andor, the EU’s social affairs commissioner, acknowledges that the loss of sovereignty involved in giving up national currencies has led to a loss of flexibility in tackling the economic crisis.

Reuters examines the odds:

IMF sees up to 20 pct chance of prices falling in Europe

There is as high as a one-in-five chance that prices could start to fall in the euro zone, the International Monetary Fund’s chief economist said on Tuesday.

“Our model gives a 10 to 20 percent probability to inflation turning negative (in the euro zone),” Olivier Blanchard told reporters on a conference call, adding that the IMF still sees positive price growth in its baseline forecasts.

He called on the European Central Bank to do all it can to anchor price expectations and boost demand in the euro currency bloc, where southern countries like Portugal and Greece continue to face weak demand.

Deutsche Welle alerts:

EU sounds alarm on poverty among working-age people

In its latest review of social developments, the European Commission has said finding a job increasingly has not pulled people out of economic hardship. It said poverty among people with jobs was a major problem.

The EU executive said Tuesday the European debt crisis had led to a significant rise in poverty among people of working age.

It stated that finding fresh employment only helped people out of poverty in 50 percent of all cases as those who managed to land a job tended to work fewer hours or for lower wages than before.

“Unfortunately, we cannot say that having a job necessarily equates with a decent standard of living,” EU Employment Commissioner Laszlo Andor said in a statement. “A gradual reduction of unemployment is unlikely to be enough to reverse the increasing trend in poverty levels,” he concluded.

Reuters bubbles:

UK property asking prices see biggest ever jump for Dec-Jan

Asking prices for homes in Britain saw their biggest ever rise for the December-January period, property website Rightmove said on Monday, potentially adding to concerns about the risk of a housing bubble.

Rightmove’s figures show the price of properties coming on to the market rose 1 percent between December 9 and January 11. The data series began in 2002.

The rise contrasts with an average fall of 0.2 percent in similar timeframes over the last 10 years during the Christmas holiday period, Rightmove said.

Austerian fruits from the London Telegraph:

Lottery of NHS drugs punishes the dying

  • Thousands of patients denied life-extending treatments approved by health watchdog

Thousands of patients suffering from cancer and other serious illnesses are being denied the drugs they need from the NHS, according to a report.

Even though the treatments have been approved by the health service rationing body, at least 14,000 patients a year are not receiving them.

As many as one in three of those suffering from some types of cancer are going without medication that could extend their lives, the figures show.

Experts said the report, from the Health and Social Care Information Centre, a government quango that provides NHS statistics and analysis of trends in health and social care, exposed an “endemic and disastrous postcode lottery” of care within the health service.

Inflationary death from RT:

‘Can’t afford to die’: British families on low incomes struggle with ‘funeral poverty’

Over 100,000 people in the UK will hardly manage to pay for a funeral this year. With the average cost of dying having risen by 7.1 percent, the poor simply cannot afford to pay the costs of funerals, a survey has found.

The average cost of dying, including funeral, burial or cremation and state administration, currently stands at £7,622 ($12,528), a rise of 7.1 percent in the past year, according to the latest study at the University of Bath’s Institute for Policy Research.

“With growing funeral costs, quite simply growing numbers of people might find they can’t afford to die,” Chief Executive of the International Longevity Centre-UK, Baroness Sally Greengross, stated on the University’s website.

On to Norway and that old time religion from TheLocal.no:

Christian GPs want right to refuse the coil

Christian doctors in Norway on Monday called for the right to refuse to offer their patients the contraceptive coil, arguing that for many of them it was tantamount to abortion.

Olav Fredheim, chairman of the Norwegian Christian Medical Association, made his demand on the eve of the publication of a controversial new law which will excuse Christian general practitioners from sending patients to have abortions on grounds of conscience.

“Doctors should not be forced to take actions that violate their moral integrity,” Fredheim told Aftenposten.

Sweden next, and state secrets from TheLocal.se:

Government to seal lid on secret donations

The Swedish government wants to protect the identities of political party donors, a proposal that left the opposition crying foul on Monday. Sweden remains one of few EU countries without total party-funding transparency.

The government coalition has proposed that the public be given access to the names of any donor that gives more than 22,200 kronor ($3,426) to a political party. The proposal’s failure to fully outlaw anonymous contributions has critics up in arms however, a predictable finale to months of wrangling and a cross-party stall in negotiations.

Sweden has no specific legislation pertaining to political party donations, which sets it aside from many of its neighbours and which has drawn criticism from the Council of Europe.

France 24 and that ol’ hard times intolerance:

Poll finds xenophobia on the rise in France

Over the past year, the English and American journalists have written widely on what they call the French “malaise”.

An Ipsos survey carried out earlier this month and published on Tuesday suggests that the description may be accurate, finding, in particular, that the French are increasingly pessimistic about their political leaders and wary of foreigners.

According to the poll, 65% of French people think that most politicians are corrupt (a three-point increase since last year) and 84% think they are motivated primarily by personal gain (a two-point rise).

Meanwhile, 78% of those questioned think “the political system does not work well” and “their ideas are not represented” (six points higher than last year). At the same time, the French seem eager for a politician who can fix things. A whopping 84% of those polled said they would like “a real leader to restore order”.

RFI hooks up:

Peugeot shares plunge as Dongfeng tie-up announced

Shares in French carmaker PSA Peugeot Citroën plunged 5.44 per cent on Monday, following the announcement of a radical tie-up its capital with Chinese Dongfeng and the French state.  The plan would mean a three-billion-euro capital injection.

The deal, which is expected to be presented to investors on 19 February, will open the door to a difficult three-way partnership, where Chinese state-owned carmarker and the French state will take over 14 per cent each of the PSA capital while the Peugeot family will reduce its from 35 to 14 per cent.

Both the Chinese and the French states will boost PSA capital and inject 750 millions euros each.

And that old time religion as well, via TheLocal.es:

‘Give us Spain’s abortion law’: French pro-lifers

Thousands of anti-abortionists took to the streets of the French capital on Sunday calling for France to adopt similar pro-life legislation to that drafted by the Spanish government last month.

Thousands of anti-abortionists took to the streets of the French capital on Sunday in an effort which they hope will see similar legislation to that passed in Spain last month make it into France next.

Participants marched through Paris on the eve of a parliamentary debate on a bill that would make terminations of pregnancy in France easier.

Organizers, among them right-wing religious groups, anti-gay activists and handicapped children associations, claimed 40,000 people took part.

Police put their number at 16,000.

And on to Spain, first with El País:

Actual retirement age in Spain rises due to new labor restrictions

  • Age at which people stop working increases on average to 64.3 in 2013
  • Number of people retiring at legal age rises 10.4 percent

The effective retirement age in Spain increased while the number of people taking early retirement decreased last year after further restrictions were placed on this possibility in March 2013, according to figures released Tuesday by Labor Minister Fátima Báñez.

The average age at which people ceased to work rose from 63.9 years to 64.3 years in 2013, while the number of people who retired at the stipulated legal age rose by 10.4 percent. The official retirement age in Spain is currently being raised in a phased fashion from 65 to 67.

Báñez said the number of people who took early or partial retirement last year fell 6.5 percent from 2012, while the number of people opting to combine receipt of some pension rights while continuing to work came to 9,094, of whom 83 percent were freelance workers.

TheLocal.es gives ‘em the business:

Hard times? Spain’s elite richer than ever

The 20 richest people in Spain earn as much as the poorest 20 percent, while the country’s wealthy elites have actually grown richer during the economic crisis, a major new global report into wealth inequality argues.

Almost half of the world’s wealth is concentrated in the hands of the richest 1 percent. Meanwhile, the fortunes of this richest 1 percent total $110 trillion (€81 trillion), or 65 times the combined wealth of the bottom half of the  world’s population.

These are the chief findings of a new report by UK charity Oxfam into the dangers of extreme economic inequality.

El País optimizes:

IMF triples its growth forecast for the Spanish economy

  • GDP to rise by 0.6 percent in 2013, according to Washington-based organization’s new report

The International Monetary Fund has raised its forecast for Spanish economic growth for this year from 0.2 percent to 0.6 percent.

The revision was included in the IMF’s updated World Economic Outlook released Tuesday. Only Britain saw a bigger upward revision of expected GDP growth, while Japan’s outlook was also improved by 0.4 percentage points.

And thinkSPAIN gets together over getting together:

Ibiza authorities give their blessing to Spain’s first ‘prostitution cooperative’

IBIZA has approved the creation of the first-ever cooperative for prostitutes, meaning they can pay taxes and Social Security guaranteeing them a State pension, sick and maternity pay.

They are protected from the hands of pimps and have legal and tax advisors on hand to offer them assistance, as well as qualified gynaecologists to give them specialist advice and regular examinations.

María José López Armesto, 42, has spent two years getting her plan approved, but is now celebrating her success with the Sealeer Cooperative.

And from the Associated Press, no homage for Catalonia:

Spain PM: No secession referendum for Catalonia

Spain’s prime minister has declared that he will not let the northeastern Catalonia region hold a referendum on whether it should secede and form a new European country.

Mariano Rajoy told Spain’s Antena 3 television network late Monday that the referendum many Catalans want “won’t take place and as long I am prime minister of Spain’s government there will not be independence for any Spanish territory.”

His comments came less than a week after the regional Catalan parliament made a formal request to the central government in Madrid for it to transfer powers to Catalonia so a referendum could be held.

Portugal next, and lethal austerianism from the Portugal News:

Waiting room woes

Hospital emergency departments, already struggling to cope with their normal patient numbers, are currently seeing their usually-packed waiting rooms even fuller as seasonal flu victims seeking medical care add to the break-back load. In some units, patients with health problems considered less serious by officials have waited almost a full day to see a doctor.

A report by state-run news channel RTP, broadcast on Tuesday, exposed the struggling state of ER waiting rooms from north to south of the country, containing a series of unflattering comments from patients, some of whom had been waiting more than 20 hours and were still counting to be seen by a doctor.

The report was chased up by a note from the Regional Health Administrative Board for Lisbon and Vale do Tejo (ARSLVT), which has asked units under its jurisdiction for more information regarding their waiting times.

Italy next, and lethal intent from TheLocal.it:

Sicilian mafia boss orders judges’ murder

Totò Riina, the Sicilian mafia boss, has been recorded telling a fellow mobster to kill anti-mafia magistrates, Italian media has reported.

The wiretapped conversations between Riina and Alberto Lorusso, speaking in October, are the latest threats targeting anti-mafia prosecutor Nino Di Matteo and others.

Speaking to Lorusso from a Milan prison, where he is serving a life term, Riina says: “We must take action [against the magistrates], make them dance the samba.”

ANSAmed impoverishes:

More than 12% of Italian workers don’t make living wage

  • Study says only Greece, Romania in worst position in EU

More than 12% of employed Italians cannot afford to live on what they earn, says a study issued Tuesday by the European Union. Only Greece and Romania are in worse positions in term of earning a living wage, with about 14% of workers in those countries unable to make ends meet, added the research.

Those findings are consistent with a report earlier this month issued by the national statistical agency Istat that said in the first nine months of 2013, the purchasing power of Italian households fell by 1.5% compared with the same period in 2012.

Overall, economic indicators suggest that 2013 will be remembered “as the worst year” in recent economic history, with spending on such necessities as medications falling by 2.5% in the first 10 months of the year and food spending falling by 1.3%, consumer group Codacons said earlier in January.

And TheLocal.it has Bunga Bunga disgust:

Top Italian leftist resigns after Berlusconi deal

The president of Italy’s centre-left Democratic Party resigned on Tuesday in the latest sign of divisions exacerbated by a deal between party leader Matteo Renzi and disgraced former prime minister Silvio Berlusconi.

Gianni Cuperlo wrote an open letter to Renzi on Facebook in which he accused the new leader of responding to criticism with “a personal attack”.

“I want to be able to always say what I think,” he said.

Renzi, who only won the nomination to lead the party last month, has angered many leftists over his willingness to negotiate with Berlusconi to negotiate a reform of Italy’s widely criticised political system.

After the jump, the Greek tragedy continues, Ukrainian violence, Brazilian mall protests, Thai troubles, Chinese economic shifts, Japanese economic vows, envrionmental woes, and Fukushimapocalyse Now!. . . Continue reading

Headlines of the day II: EconoHydroFukuFrack


We begin close to home with a headline from Salon:

California faces water shortages and wildfires as “mega-drought” gets even worse

  • The fire danger is “about as high as it can be,” one meteorologist warned

The year 2013 was California’s driest on record, featuring the least rainfall since the state started keeping track in 1849. And so far, 2014 is off to a bad start.

A full 63 percent of the state is in extreme drought conditions, according to the U.S. Drought Monitor — up from 23 percent just last week and extending into northwestern Nevada. Precipitation for the water year (which begins October 1) is less than 20 percent of normal levels in the areas of most extreme drought. Up in the Sierra Nevada mountains, snowpack — a major repository for the state’s water supply — is between 10 and 30 percent of normal, with many locations now in the bottom 5th percentile. Two of the state’s lakes are only 36 percent full; the San Luis Reservoir in Central Valley is down to 30 percent.

“It’s really serious,” Gov. Jerry Brown said Monday. “In many ways it’s a mega-drought; it’s been going on for a number of years.” Any day now, he’s expected to announce that California is officially in the midst of a drought.

More from the New York Times:

As California’s Drought Deepens, a Sense of Dread Grows

On Friday, Gov. Jerry Brown made it official: California is suffering from a drought, perhaps one for the record books. The water shortage has Californians trying to deal with problems that usually arise midsummer. With little snow in the forecast, experts are warning that this drought, after one of the driest years on record last year, could be as disruptive as the severe droughts of the 1970s.

Under state law, that would allow the governor to “waive laws or regulations and expedite some funding,” said Jeanine Jones, deputy drought manager for the state Department of Water Resources. “It does not create a new large pot of money for drought response or make federal funding available.”

Reuters gets defensive:

Latest perk on Google buses: security guards

  • First, San Francisco-based commuters to Google Inc got buses with plush seats and free WiFi. Now, they are getting security.

In recent days, men with earpieces have closely monitored passengers boarding Google commuter buses at the site of at least one bus stop in San Francisco’s Mission District. Their presence comes a few weeks after Google buses were targeted by protesters who blame tech-industry employees for rising city rents.

Gone are the days when mentioning Google as an employer gave young technology workers a certain counterculture credibility. As the company has expanded well beyond its Web search-engine roots to become a behemoth encompassing advertising, smartphones, finance and social networking, it has gone from scrappy start-up to a Goliath that many resent for its power.

In San Francisco, many long-time residents believe the influx of richly compensated workers at Google and other big technology companies such as Facebook Inc and Twitter Inc has pushed rents to unaffordable levels in neighborhoods that once were homes to the working class.

The Denver Post bites:

Edible marijuana sales shattering sales projections in Colorado

A one-month supply of marijuana edibles, gone in the first three days of January; that’s what the area’s largest supplier is saying about the incredible demand for the product since recreational sales were legalized in Colorado on Jan. 1.

“We are working hard,” said Joe Hodas, chief marketing officer for Dixie Elixirs and Edibles. “We like to call ourselves the future of cannabis.”

There is so much demand for edibles right now, they limit customers to two edible products a day at recreational pot shops like LoDo Wellness at 16th St. and Wazee in downtown Denver.

The Guardian pays out:

Goldman Sachs pays employees average of $383,000 after profits rise 5%

  • US bank’s 32,900 global employees to hear size of individual bonuses, while fixed-income trading operation had fall in profits

Goldman Sachs paid its bankers an average of $383,000 (£233,000) in 2013, after profits for the year rose by 5% to $8bn.

Putting a fresh focus on the debate over bankers’ pay, Goldman’s 32,900 global employees will be told the size of their individual bonuses on Thursday.

The bank set aside $2.19bn in the quarter ending December 31 to compensate employees, up 11% from a year earlier but down 8.1% from the previous quarter. Goldman partners were told about their bonuses on Wednesday.

From the Los Angeles Times, class debt:

Banks embracing a housing-bubble favorite: interest-only loans

Customers for interest-only loans are often self-employed and capable of making big down payments and maintaining fat bank accounts.

Most of the risky mortgages that triggered the financial crisis have disappeared from the marketplace, and lenders will have even more reason to avoid them because of a new federal crackdown on loose lending.

But one housing-bubble favorite — the interest-only loan — will remain a common offering to well-heeled home buyers, despite new rules from the Consumer Financial Protection Bureau. The rules, which took effect last week, exclude interest-only loans from “qualified mortgage” status, which protects lenders from liability over defaults.

Bankers don’t seem worried about affluent clients missing payments. With high-end home prices on the rise, they have recently embraced jumbo mortgage lending, including interest-only mortgages. That trend continued this week as the banks reported earnings, with Bank of America Corp. saying 36% of its fourth-quarter mortgages were jumbo loans, up from 23% of originations in the first quarter.

Bloomberg Businessweek retaliates:

Scandal Bowl: UNC Suspends Research by Academic Fraud Whistle-Blower

The most outrageous scandal infecting the business of big-time college sports just took a turn for the much worse. The University of North Carolina, famed for its outstanding academics and championship-winning basketball team, announced late Thursday that it had suspended research on athlete literacy by Mary Willingham.

A campus tutor employed by the university, Willingham has done more than anyone else to shed light on classroom corruption at Chapel Hill related to keeping sports stars eligible to play. The shadow cast on her research speaks volumes about the university’s unwillingness to come to terms with the undermining of academic standards in the service of athletics.

From Romenesko, more blood on a California newsroom floor:

Orange County Register owner names new newsroom leaders, confirms 32 layoffs

Orange County Register owner and publisher Aaron Kushner confirms in a memo that 32 newsroom employees were laid off today, and that Ken Brusic and other top editors have resigned. (I’m told they quit in protest of the layoffs.)

Local editor Rob Curley has been promoted to top editor.

CNBC cops out:

Battle over police pensions in US cities takes ugly turn

A drive by some American cities to cut costly police retirement benefits has led to an extraordinary face-off between local politicians and the law enforcement officers who work for them.

Another copout from Al Jazeera America:

NYPD agrees to ‘largest protest settlement in history’

  • New York City civil rights activists hail settlement over 2004 RNC demonstrations as a victory against mass arrests

In what civil rights lawyers have called “the largest protest settlement in history,” New York City has agreed to pay $18 million to protesters who said they were wrongly arrested at the 2004 Republican National Convention, where then-president George W. Bush was nominated for a second term.

The settlement ends nearly a decade of legal battles between the New York Police Department and plaintiffs who said police forces mishandled their arrests and violated their First Amendment rights.

Approximately 1,800 people were arrested, out of nearly 800,000 protesters, mostly on charges of parading without a permit or disorderly conduct. The circumstances of those arrests were heavily disputed, according to a statement from the New York City law department.

Red state blues from The Guardian:

North Carolina’s poorest hit by federal cuts: ‘Unless someone helps, we’re bust’

  • As Congress wrangles with whether to restore long-term unemployment benefits, North Carolina is already experiencing the hardship likely to unfold unless the program is restored

Debt for the rising generation from Bloomberg Businessweek:

Student Loans, the Next Big Threat to the U.S. Economy?

Outstanding student debt topped $1 trillion in the third quarter of 2013, and the share of loans delinquent 90 days or more rose to 11.8 percent, according to the Federal Reserve Bank of New York. By contrast, delinquencies for mortgage, credit card, and auto debt all have declined from their peaks.

The New York Federal Reserve’s move to measure the size of the student loan load says a lot about how concerned the central bank is about a possible threat to the economy. “Our job is to really understand what’s happening in the financial system,” and the “very rapid rise in student loan debt over the last few years” can “actually have some pretty significant consequences to the economic outlook,” New York Fed President William Dudley told reporters in November. “People can have trouble with the student loan debt burden—unable to buy cars, unable to buy homes—and so it can really delay the cycle.”

The federal government is the source and backer of most of the loans. “I’m always made very nervous by a credit market that benefits from government guarantees and is expanding very rapidly,” Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, said on Jan. 10 at a Greater Raleigh Chamber of Commerce event in North Carolina. “That’s what we’re seeing with student loans, and it’s what we saw with housing.” As the New York Fed’s Dudley explained in November, “to the extent that student loan burdens become very, very high, there are presumably going to be losses” to the federal government.

For our first global story, this from TheLocal.ch:

Inequality poses world’s greatest risk: report

The growing gulf between the rich and the poor represents the biggest global risk this year, the World Economic Forum declared on Thursday ahead of this month’s Davos summit.

The Geneva-based institution issued the gloomy warning in its annual Global Risks survey, published before its annual get-together of decision-makers at the Swiss mountain resort of Davos from January 22nd-25th.

“The chronic gap between the incomes of the richest and poorest citizens is seen as the risk that is most likely to cause serious damage globally in the coming decade,” the WEF concluded.

In its Global Risks 2014 report, which is based on a survey of more than 700 experts from industry, government, academia and civil society, the WEF outlined possible events that could damage the world economy this year.

The London Telegraph heads to the MINT:

How to invest in the ‘MINT’ emerging markets

Mexico, Indonesia, Nigeria and Turkey have been tipped as the next economic giants. Can savers make money or is this the latest investment fad?

The chances are you have probably heard that Mint is no longer just a peppermint sweet; it is now also an investment acronym which in the next decade or two could prove extremely profitable for investors.

The concept, which groups the countries of Mexico, Indonesia, Nigeria and Turkey, has been popularised in recent weeks by respected economist Jim O’Neill, the man who also coined the BRIC term in 2001, identifying Brazil, Russia, India and China as the next global economic powerhouses.

Splitting the difference with EUbusiness:

Bundesbank sees ‘limited’ risk of eurozone deflation

There is only a “limited” risk of deflation — or falling prices — in the 18 countries that share the euro, the head of Germany’s central bank or Bundesbank, Jens Weidmann, said on Thursday.

His remarks came after, and in contrast to, a warning from the head of the International Monetary Fund on Wednesday that the “ogre” of deflation was a potential threat to the world economy.

Eurozone inflation slowed to just 0.8 percent in December from 0.9 percent in November, according to the latest data published by the Eurostat statistics agency.

Auto anxieties from the London Telegraph:

Car sales in Europe at lowest level since 1995

  • New registrations fell 1.7pc in 2013, the sixth consecutive year of decline, although sales picked up at the end of the year

Car sales in the European Union were at their lowest level for 18 years in 2013, as slumps in certain crisis-hit eurozone states outweighted an improvement in other countries including the UK.

New registrations fell by 1.7pc to 11.9m, according to ACEA, the European Automobile Manufacturers’ Association. This was the worst level since ACEA begin recording data for the enlarged EU in 2003, and the worst for the block of 15 European countries the body had previously measured since 1995.

Car sales have slumped since the financial crisis and are now 26pc down on 2008, although sales rebounded towards the end of the year as the eurozone exited recession.

Disestablishmentarianism from EUobserver:

MEPs call for dismantling of EU bailout ‘troika’

The “troika” of international lenders, which sets the terms of eurozone bailouts with little or no democratic oversight, should be replaced by an EU system which is accountable to the European Parliament, MEPs say.

“All European instruments that are not based on EU law are provisional. EU instruments should be based on the community method, with the European Parliament acting as democratic legitimator and control body,” Austrian centre-right deputy Othmar Karas told press in Strasbourg on Wednesday (15 January).

Karas is drafting a report together with a French Socialist colleague, Liem Hoang-Ngoc, on the work of the troika.

Gimme shelter from New Europe:

MEPs ask for an EU wide strategy for the homeless

The MEPs once again asked from the European Commission to form an EU-wide strategy for the homeless.

On 16 January, the MEPs adopted a resolution asking from the Commission to finally establish a European strategy for the homeless. According to the resolution adopted by 349 votes to, 45, with 113 abstentions an EU homelessness strategy should focus on housing, cross-border homelessness, quality of services for the homeless, prevention and homeless young people. According to the MEPs even though the responsibility for tackling homelessness lies with EU countries an EU strategy for the homeless must have a complementary role to play.

The European Commission has already acknowledged that homelessness levels have risen recently in most parts of Europe and the crisis seems to have aggravated the situation. Moreover, the profile of the homeless population has been changing and now includes more young people and children, migrants, Roma and other disadvantaged minorities, women and families are increasingly at-risk of homelessness.

Another new record from EUobserver:

Poverty in Europe at ‘unprecedented levels’

EU social affairs commissioner Laszlo Andor told MEPs in Strasbourg Thursday that poverty in Europe is at an all time high. “Poverty has risen in Europe, mainly in the more peripheral countries and regions, reaching unprecedented levels among those who are more vulnerable, such as homeless people,” he said.

More Banksters Behaving Badly from The Guardian:

HSBC and Citigroup suspend foreign exchange traders amid rigging probe

  • US regulators arrive in London to step up joint investigation with Financial Conduct Authority into alleged market manipulation

HSBC and Citigroup have both suspended foreign exchange traders as a global probe into possible currency market manipulation intensified.

Regulators from the United States arrived in London this week, stepping up an investigation in which they are working with Britain’s financial watchdog, the Financial Conduct Authority, to determine whether traders at some of the world’s biggest banks colluded to manipulate the $5.3 trillion-a-day (£3.2tn) foreign exchange market.

The investigations centre on senior traders’ communication of client positions via electronic chatrooms, which also featured prominently in a probe into the rigging of a key interest rate known as the London interbank offered rate, or Libor.

Sky News bubbles selectively:

House Prices ‘Risk Becoming Unsustainable’

  • A report warns of the consequences of the growing gulf between homes for sale and demand in some areas of the UK.

Surveyors have warned that house prices risk becoming unsustainable in some areas because low home supply is failing to meet high demand in the market.

The Royal Institution of Chartered Surveyors (Rics) measured the strongest level of sales in six years ahead of Christmas.

Its report predicts prices will rise by 5% on average in each of the next five years but warns that a lack of properties for sale risks people paying far more than market value to secure a home.

From The Independent, so much for du seigneur?:

Calls to abolish outdated rights for lords of the manor that ‘serve no purpose in the 21st century’

  • The title is a hangover from the feudal era and does not automatically bring with it physical property, but entitlements and duties that would have once been held by a medieval seigneur are often included

And along that line, one of those entitlements or duties? From the London Times:

Fancy-dress dogging on duke’s estate upsets villagers

Police have been called to an aristocrat’s estate to crack down on sex parties involving groups of men dressed in fairy wings, tutus and PVC.

The Badminton Estate, owned by the Duke of Beaufort, is being plagued by groups of men congregating in farm buildings in fancy dress.

Nick Bush, a tenant farmer, asked the police to intervene after battling in vain to deter the men.

RT bets on the come line:

UK worsens global hunger crisis by ‘blocking reforms on food speculation’

The UK is being accused of attempts to block EU reform to prevent food speculation. It took EU negotiators three years to agree on a regulation against speculation by banks and hedge funds which drives up food prices, aggravating the global hunger crisis.

The deal introduces new rules to limit speculation on products linked to what people eat, such as wheat, corn, soybeans or sugar. The new controls will set limits on the number of food contracts that banks and other finance institutions can hold, pushing traders to open their activity to greater public scrutiny.

Representatives of the EU’s 28 governments and EU lawmakers clinched the deal on the outlines of the Markets in Financial Instruments Directive (MiFiD) in Strasbourg late on Tuesday. The bloc’s executive arm, the European Commission, has promised that the rules on agricultural derivatives would “contribute to orderly pricing and prevent market abuse, thus curbing speculation on commodities and the disastrous impacts it can have on the world’s poorest populations.”

An Irish booster shot from Independent.ie:

Moody’s upgrades Ireland to Investment Grade after bailout exit

  • RATING agency Moody’s has upgraded Ireland’s government debt from “junk” to higher quality “investment grade” status.

International money markets reward Ireland with low interest rates, bailout chief says

The country is now regarded as a lower risk investment by all of the main credit agencies for the first time since 2011.

Finance Minister Michael Noonan said the move will help to lower borrowing costs for companies and individuals.

Norwegian anxieties for naught from TheLocal.no:

Norway’s open border brings few Romanians

Norway has seen few extra Romanians and Bulgarians since it lifted border restrictions at the end of 2012, belying fears in the UK of a floods of migrants.

The richest country in Europe with a generous welfare state,  Norway could be expected to be a top draw for low-salaried Eastern Europeans.

But between January and December 2013, it saw just 4,904 Romanians and Bulgarians registering for work using their European Economic Area (EEA) citizenship, a rise of just 24 percent on the year before, when they needed to apply for special work permits.

Amsterdam next, with a not of disapproval from DutchNews.nl:

Dutch business leaders slam cabinet polices, support at record low

Dutch business leaders are extremely unhappy with the current right-left coalition’s policies and think the cabinet is failing to tackle the crisis.

Employers’ organisation VNO-NCW questioned 471 company bosses about their attidudes to the VVD-PvdA government and current policy. In total, the cabinet scored just 4.9 out of 10 – a record low according to the Telegraaf.

Prime minister Mark Rutte was rated 5.4, well below most of his senior ministers. Top ranked minister was finance chief Jeroen Dijsselbloem, who scored 6.6.

Germany next, where TheLocal.de restores a commons:

Hamburg buys its energy grid back for €400 million

Energy giant Vattenfall said on Thursday it had “unwillingly” agreed to sell the electricity grid in Hamburg back to the city, as approved by a referendum last year.

The value of the transaction, still to be determined, is expected to be about €400 million. Vattenfall has a 74.9 percent stake in the electricity grid company, Stromnetz Hamburg, while the remaining 25.1 percent belongs to the German city.

“The value of the entire electricity grid company has preliminarily been agreed at €550 million euros,” the Swedish company said. “However, both parties have agreed on a minimum value of €495 million.”

France next and the origin of the feces from TheLocal.fr:

Tonnes of dung dumped at French parliament

As if President François Hollande didn’t have enough crap to deal with right now, protesters sent tonnes more his way on Thursday when they dumped a lorry-load of manure outside the French parliament.

Weeks after hundreds of chickens were let loose, several tonnes of steaming dung were dumped from a lorry in front of the parliament building on the Quai d’Orsay on Thursday morning during what French police termed “un attentat à la crotte” or “poop attack”.

The lorry carried a simple message to President François Hollande and his buddies in parliament: “Hollande and the political class should get out, make way for the Fifth Republic”. The driver was arrested soon after dropping the steaming cargo.

Spain next, and another austerian demand from El País:

Eurogroup and EC insist Spain needs second round of labor reform

  • EU commissioner Rehn says Brussels engaging in “constructive dialogue” with Rajoy government on the issue

The president of the Eurogroup, Jeroen Dijsselbloem, on Thursday reiterated calls for Spain to undertake a second round of reforms of the labor market in order to strengthen the country’s recovery from a deep recession.

As Dijsselbloem himself told reporters during a visit to Beijing accompanied by the European Union commissioner for economic and monetary affairs, Olli Rehn, he had already made a speech in Madrid in October along the same lines. “New labor reforms will work, not only in Spain, but also in other countries,” he said.

In a report released in December, the OECD also suggested that severance pay remains high in Spain and that more cuts were necessary to tackle high unemployment, which currently stands at 26 percent.

The labor reform introduced in February 2012 cut severance pay for permanent workers from 45 days of wages for each year of service to 33 days, and the maximum amount from 42 months’ salary to 24 months. It also introduced a series of so-called “objective causes” such as falling sales and technological and organizational changes that allow companies to lay off workers en masse with severance pay of only 20 days’ wages for every year worked, up to a maximum of one year’s salary.

From EurActiv, schismatic:

Spanish ruling party rebels launch new conservative party

Rebels from Spain’s ruling conservative People’s Party launched a new political party on Thursday (16 January), hoping to tap into public discontent over sky-high unemployment, graft scandals and surging separatism in Catalonia.

Leaders of the new party, named Vox (voice in Latin), accuse Prime Minister Mariano Rajoy of being too soft on Catalan and Basque separatism and of breaking election promises by, for example, raising taxes.

“Millions of Spaniards … feel abandoned by the political system, which is infested with corruption scandals and at the beck and call of private interests,” Santiago Abascal, a former PP member on the Vox executive committee, told reporters.

More schismatics from El País:

Catalan assembly approves motion to seek leave to hold self-rule referendum

  • Three Socialist lawmakers break with party line to vote in favor of proposal

“We are not voting on the political future of Catalonia, but the form in which Catalans will decide it”

The Catalan regional assembly on Thursday approved a motion to ask the national Congress for permission to hold a referendum on the independence of the region from the rest of Spain.

The proposal was approved by members of the ruling center-right nationalist CiU bloc, the Catalan Republic Left (ERC) and the ICV leftist-green group. Three members of the Catalan branch of the main opposition Socialist Party (PSC) broke ranks to vote in favor of the motion, while the center-left Candidature for Popular Unity (CUP) abstained. The conservative Popular Party (PP) and the centrist Citizens party voted against.

TheLocal.es gets going:

Spain’s expat exodus continues

Spain lost nearly 200,000 registered foreign residents in 2012 as the country’s economic crisis continued to bite, official figures released on Friday show.

The new figures from Spain’s National Statistics Institute (INE) highlight the continuing fall in the number of registered foreign residents in Spain.

According to the data, there were 190,020 fewer foreigners registered with Spain’s local town halls on January 1st 2013 than on the same date a year earlier.

While these figures fail to take into account the huge number of foreigners in Spain who fail to register on their local civil register (padrón), the decline suggests many people are leaving because of the country’s economic crisis

And thinkSPAIN tracks turmoil:

Burgos burns as boulevard riots leave 40 in custody

VIOLENT protests in the central Spanish city of Burgos over controversial works on a main boulevard have led to 40 arrests and widespread damage.

Five days of riots, with wheelie-bins set alight and bottles smashed as well as physical fights have blackened the otherwise peaceful and picturesque city’s landscape – but as yet, calls for the work to stop have not been answered.

Some 8,000 residents have formed a working party to fight plans to spend in excess of eight million euros on revamping the C/ Vitoria in the Gamonal neighbourhood, money they feel could be better spent on public services.

On to Lisbon and a boost from El País:

S&P removes threat to further cut Portugal’s debt rating

  • Agency sees growing signs of economy stabilizing

Standard & Poor’s on Friday affirmed its junk-status BB rating for Portugal’s long-term sovereign debt after withdrawing a threat to further downgrade it, but maintained its negative outlook on the rating.

Portugal is aiming to successfully exit its 78-billion-euro bailout program later this year and return to the long-term debt markets. The IGCP debt-management arm of the government successfully tested the waters last week with a 3.25-billion-euro issue of five-year bonds

S&P said it expects the center-right Social Democrat-led coalition of Prime Minister Pedro Passos Coelho to have met its deficit-reduction target of 5.5 percent of GDP last year and make progress on achieving its 4.0-percent target for this year.

Italy next, with diplomatic debauchery from TheLocal.it:

‘Bunga bunga’ claims hit US consulate in Italy

An ex-employee of the US consulate in Naples has claimed her former boss slept with his staff and gave prostitutes free access to the property, Italian media has reported.

Kerry Howard, who worked at the consul until 2012, said she was forced to quit after whistleblowing about the behaviour of former Consul General Donald Moore.

During his time in Naples, Moore allegedly slept with a number of staff and prostitutes, Il Sole 24 Ore reported. The diplomat also allegedly gave the women the code to enter the consulate at night without being detected.

“Women are like candy, unwrap them and throw them away,” Moore was quoted as saying.

Retro racism from The Independent:

Italian MP Gianluca Buonanno ‘blacks up’ to deliver racist anti-immigration rant in parliament chamber

  • Northern League politician asks parliament whether people needed to ‘go around painted black’ in order to receive state benefits

An Italian MP has “blacked up” to deliver a staggering anti-immigration rant in the country’s parliament, smearing his face from a makeup pad and asking whether “we need to be a bit darker” to get benefits from the state.

Gianluca Buonanno, a politician with the right wing Northern League party, took the opportunity on Wednesday night to criticise “latecomers” and “non-EU” citizens who receive pensions despite, he claimed, having “never worked a day in their lives”.

Looking for the Toxic Avenger with Spiegel:

The Mafia’s Deadly Garbage: Italy’s Growing Toxic Waste Scandal

For decades, the Mafia has been dumping toxic waste illegally in the region north of Naples. Recently declassified testimony shows that leading politicians have known about the problem for years, yet done nothing about it — even as the death toll climbs.

After the jump, Greek crimes and crises, Ukrainian repression, Latin American violence, Indian inflation, Thai violence, Chinese “reforms,” environmental woes, and Fukushimapocalypse Now. . . Continue reading

Gangapreneurs: Rocky Mountain high-flyers


Well, at least that’s the trhrust of this AC360 segment on the Colorado folks raking it in following the legalization of pot by legislators in the Mile High City.

But the clip is just as much about reporter Randi Kaye and Anderson Cooper’s reaction to her sudden onset of good humor.

It’s enough to make you smile.

Via Truth Revolt:

CNN Reporter Gets Contact High Covering Colorado Pot Story CNN

Program notes:

In a must-see-to-believe segment in CNN’s “Gone to Pot” series covering the historic legalization of recreational marijuana in Colorado, CNN reporter Randi Kaye interviewed pot entrepreneur “Grandma Barbara” (72) and took a limousine tour of marijuana dispensaries with a few weed enthusiasts. Unsurprisingly, the fellow passengers on the “Cannabis Tours” trip, enjoyed some now perfectly legal, “small canon”-size joints. The result was an increasingly giggly CNN reporter who admitted later to Anderson Cooper that she “got a little bit of a contact high.”

Over in Old Blighty, the CNN clip rated a feature for The Independent, topped by this headline:

‘Everything was funny’: CNN Reporter gets high during Colorado marijuana legalisation report

Philly.com, the website of Philadelphia’s daily newspapers, played it this way:

VIDEO: Anderson Cooper calls out CNN reporter for being high during pot segment

CNN’s own press website is more circumspect:

AC360′s Gone To Pot – Randi Kaye’s piece on Businesses Cashing in on Pot Sales

Headlines of the day II: EconoGrecoEcoNoFuku


A rare day when Fukushima rates only a tangential headline. But never fear, things are at a rolling boil in lots of other venues. . .

We begin with a hint of things to come from Want China Times:

US dollar era could end: Nobel laureate Thomas Sargent

Nobel Prize laureate Thomas Sargent says the era of the US dollar as the world’s largest trade currency could come to an end, China Entrepreneur magazine reports.

Sargent, who won the Nobel Prize in Economics in 2011, made the comments in an interview during a recent visit to China.

The US dollar rapidly became the world’s top trade currency after the conclusion of World War II because wars have affected the US relatively less, allowing the country to maintain its balance of payments, Sargent noted, adding that predictions about the end of the US dollar era have been premature.

In the future, however, all national governments will take more precautions but will still allow the public to decide what trade currency they prefer to use. If they end up deciding to use a different currency like the Chinese yuan, then the era of the US dollar will effectively end, Sargent said.

The Contributor Network delivers the inhumane:

TX Rep on Why He Joined Congress: To Stop Single Moms from Getting Welfare

Last week marked the 50th anniversary of LBJ’s War on Poverty, which introduced major initiatives designed to help lift Americans out of poverty. President Obama marked the occasion by recommitting himself to fighting poverty, declaring that “our work is far from over.”

Texas Congressman Louie Gohmert (R-Tyler), on the other hand, used the occasion to reaffirm how much he hates poor people, especially single mothers.

In a speech on the House floor Wednesday night, Gohmert explained that the War on Poverty inspired him to run for Congress. But it wasn’t because he wanted to fight poverty, it was because he hated welfare. Gohmert said that as a state district judge, he realized that “the government will send you a check for every baby you have out of wedlock” and he decided he had to stop it.

Just for the sake of reality, consider the following as our riposte to Gohmert’s, er, gomerism, via Montclair Sociologist:

BLOG Single mom poverty

A relative of Obama’s commerce secretary goes for the [Acapulco] gold via Bloomberg:

Pritzker Scion Backs Pot Plans as Getting High Gets Legal

Robert Frichtel will have 10 minutes to persuade a roomful of investors in Las Vegas to part with as much as $6 million for a business leasing space for growing marijuana.

Frichtel’s firm will be among 12 companies making pitches Jan. 23 to as many as 70 angel investors assembled by the ArcView Group, based in San Francisco. Members include Joby Pritzker, whose family started Hyatt Hotels Corp., and Adam Wiggins, co-founder of Heroku Inc., a software maker acquired by Salesforce.com Inc.

“Everybody is running toward this as the next entrepreneurial wave — the green rush,” said Frichtel, 50, president and chief executive officer of Advanced Cannabis Solutions Inc., based in Colorado Springs, Colorado.

TheLocal.de covers a landmark:

German carmakers celebrate record US sales

German automakers predict further growth in the US market after achieving record sales in 2013 by capitalizing on expanding demand for luxury vehicles, the head of the VDA automakers association said Monday.

The country’s carmakers have managed to outpace the market, expanding sales by 75 percent since the financial crisis pushed US sales to the lowest level in decades in 2009.

“During those crisis years we, the German auto industry, did not make the mistake of underestimating the importance of the US market,” VDA’s president Matthias Wissmann said at the Detroit auto show. “On the contrary, our companies consistently expanded their activities here in the United States. This long-term strategy is paying off.”

The Washington Post strikes close to Republican home:

Survey: Strong concern about health coverage among congressional staffers

The vast majority of congressional staff directors think their employees are worried about their health benefits after a GOP amendment to the Affordable Care Act forced them off their normal federal-worker plans, according to a survey released Monday.

Ninety percent of chiefs of staff and local directors in a Congressional Management Foundation survey said their employees are concerned about the benefit changes, while 86 percent said their workers are worried about cost.

Congressional staffers previously qualified for coverage under the Federal Employee Health Benefits Plan, but an amendment by Sen. Charles Grassley (R-Iowa) to the health law now prohibits lawmakers and their staffers from taking part in the program.

Those individuals must now seek coverage through their spouses, parents, or the federal exchange established under the health law. Otherwise, they have to pay a penalty for not having insurance.

Another institution gets an offshore owner via BBC News:

Japan’s Suntory buys Jim Beam drinks group in $16bn deal

Japanese family-owned drinks firm Suntory is to buy the US beverage group Beam Inc, the company behind the Jim Bean bourbon brand.

Under the deal, worth $16bn (£9.7bn) in all, Suntory will pay $13.6bn in cash and take on Beam’s debt.

It will make Suntory the world’s third largest maker of distilled drinks.

Belated realization from Al Jazeera America:

Larry Summers joins the reality-based economics community

  • Former Obama adviser discovers that prolonged economic downturns are a serious problem

In a remarkable departure from earlier versions of Larry Summers, the former Treasury secretary, Harvard president and top Obama economic adviser has recently been sounding the alarm about secular stagnation — a prolonged period when the economy operates below its potential level of output. This discovery may provoke choruses of “duh” from the tens of millions of workers who for years have had the opportunity to live with secular stagnation in the form of unemployment, underemployment or stagnant wages.

But even if his discovery is not news to most people, it is a huge development nonetheless. Summers is one of the world’s most prominent economists. In the mainstream of the profession, it has long been a matter of virtual absolute faith that the economy tends to sustain full employment levels of output. Any departures from full employment are quickly corrected by the self-adjusting market, ideally with a push from a reduction in interest rates by central banks.

Gee, ya think so? From Salon:

Noam Chomsky: Trans-Pacific Partnership is a “neoliberal assault”

  • The political theorist and linguist slams the agreement that has little to do with free trade

Critics of the Trans-Pacific Partnership agreement — a purported free trade deal between 11 countries, including the U.S., Canada and Japan, which has been in negotiations for some years — have noted that the deal has little to do with free trade. Rather, the TPP is about limiting regulation, helping corporate interests and imposes fiercer standards of intellectual property (to, again, largely benefit corporate interests).

Noam Chomsky has joined the chorus decrying the TPP. On Monday he told HuffPost Live that the deal, which is not yet finalized, is “designed to carry forward the neoliberal project to maximize profit and domination, and to set the working people in the world in competition with one another so as to lower wages to increase insecurity.”

Chomsky said it was “a joke” that the deal is designated a “free trade” agreement. “It’s called free trade, but that’s just a joke,” Chomsky said. “These are extreme, highly protectionist measures designed to undermine freedom of trade. In fact, much of what’s leaked about the TPP indicates that it’s not about trade at all, it’s about investor rights.”

On to Europe, first with a warning from the Australian Financial Review:

IMF adds four European countries to financial risk list

The IMF has added Denmark, Finland, Norway and Poland to its list of countries that must have regular check-ups of their financial sectors, under an effort to prevent a repeat of the global financial crisis.

Looking down with EUbusiness:

Portugal, Greece, Latvia highlight eurozone deflation risk

Consumer prices rose by an average of 0.3 percent in 2013 in Portugal and fell by 0.9 percent in Greece, according to data released Monday, showing the risk of deflation in the eurozone periphery remains real.

In Baltic state Latvia, inflation was zero in 2013 compared with price levels in 2012, official data in Riga showed. Latvia became the eurozone’s 18th member on January 1 this year.

Portugal’s INE statistics agency said that annual consumer price inflation picked up to 0.2 percent in December, from the -0.2 percent registered in November. It said the disinflation trend in 2013 was mostly due to a 0.7-percent drop in energy prices.

In Greece, annual inflation came in at -1.7 percent in December, after hitting -2.9 percent in November, according to EL.STAT.

Another warning, via Reuters:

ECB’s Mersch says recovery on wobbly legs

The euro zone economic recovery is still very tentative and fragile and is Europe’s number one challenge for 2014, European Central Bank Executive Board member Yves Mersch said on Monday.

“I see the big challenge for this year in the still very tentative upturn,” Mersch said in the text of a speech to be given at an Ifo Institute event in Munich. “The economic recovery in Europe still stands on wobbly legs.”

Mersch also urged those countries which can afford it to invest in infrastructure.

While he did not specifically name Germany, it has faced criticism from countries in Europe and beyond for spending less on infrastructure over the past decade.

On to Britain with a weighty entry from RT:

Obesity pandemic looms large as half of Britons could be overweight by 2050

Prognoses that only half the UK population will be obese by 2050 ‘’underestimate the true scale of the problem,’‘ a new report has warned. The National Obesity Forum says Britain is in for the worst case obesity scenario.

“It is entirely reasonable to conclude that the determinations of the 2007 Foresight Report (i.e. that half the population might be obese by 2050 at an annual cost of nearly 50 billion pounds), while shocking at the time, may now underestimate the scale of the problem,” the report by the National Obesity Forum stated.

“Obesity and weight management are a direct cause of many health problems and are already placing enormous demands on the NHS at a time when health resources are stretched like never before. The current situation is unsustainable,” Professor David Haslam, the forum’s chair said.

Just say no, via EUobserver:

UK parliament should have right to veto EU laws, MPs say

The UK parliament should have the right to throw out EU laws, according to a letter from Conservative MPs to Prime Minister David Cameron.

In the letter, made public on Sunday (12 January), 95 Conservatives (out of a total of 225) stated that the House of Commons should be able to block new EU legislation and repeal existing measures that threaten Britain’s “national interests”.

A national parliament veto power would allow the UK to “recover control over our borders, to lift EU burdens on business, to regain control over energy policy and to disapply the EU Charter of Fundamental Rights”.

The idea was quickly dismissed by ministers.

Neoliberal gospel from the Irish Independent:

Slash tax to create jobs and attract business, report urges

INCOME tax should be dramatically slashed to encourage risk-taking in business and bring in foreign start-up companies, the Government is being advised.

A radical report by an expert group on entrepreneurship, seen by the Irish Independent, has recommended a flat tax on all income of 15pc to 20pc in a long-term strategy to attract corporations, immigrant business people and keep wealthy Irish in the country.

The low flat rate of tax would be on all income and would also be aimed at eliminating evasion.

“High income tax rates results in fewer jobs, results in more people on social welfare, and results in a dying economy,” the report by the Entrepreneurship Forum says.

On to Amsterdam, with a bill to come from DutchNews.nl:

Prisoners to pay €16 a day for their time in jail: justice ministry

The cabinet is planning to make convicted criminals pay towards the cost of the investigation into their crimes as well as a fee for each day they spend in jail.

The justice ministry said in a statement on Monday it is to introduce a charge of €16 a day for prisoners, people in psychiatric prison and the parents of juveniles in detention.

Prisoners and parents would be liable to pay the charge for a maximum two years, costing them up to €11,680.

Hints of coming Danish deflation from the Copenhagen Post:

Inflation at a historic low

  • The yearly rise of consumer prices has reached its lowest rate in 60 years

Last month saw consumer prices rise by 0.8 percent over December 2012 – the second-largest jump of the year – but as a whole, inflation was at a historic low in 2013.

With prices rising just 0.8 percent from 2012 to 2013, it marked the lowest inflation rate in 60 years.

A drop in the price of food and petrol are among the explanations for the historically low inflation rate, according to Arbejdernes Landsbank chief economist Lone Kjærgaard.

Germany next, putting on a happy face with New Europe:

Germany: Government wants German army to be an attractive employer

German Defence Minister Ursula von der Leyen announced her plan to reform the labour relations in the German army.

“My goal is to make the armed forces to be one of the most attractive employers in Germany…In doing so, the most important issue is the compatability of employment and family,” Ms. Von der Leyen told the national Sunday newspaper Bild am Sonntag. The German Defence minister also served as a Federal Minister of Labour and Social Affairs and a Minister of Family Affairs in the previous governments.

Chinese new agency Xinhia reported that according to German media reports, soldiers often criticise the family-unfriendly conditions in the German army. The complaints made to Hellmut Konigshaus, Parliamentary Commissioner for the German Armed Forces, have reached a record high in 2013. Ms. Von der Leyen said that she intends to promote part-time work for soldiers who need to take care of their children or parents and also expand child care services in army barracks. Moreover she stressed that, “anyone who, for example, uses the option of a three- or four-day week while raising a family must still have career prospects.”

Europe Online books a profit:

Volkswagen overtakes GM with 16-per-cent growth in China

German auto giant Volkswagen AG on Monday reported annual sales of 3.27 million vehicles in China last year, up 16.2 per cent, beating the sales volume of US rival General Motors.

“2013 was a very successful year for us, and we intend to continue our growth in 2014,” said Jochem Heizmann, the head of Volkswagen Group China.

Sales of the company’s Volkswagen-branded vehicles rose by nearly 17 per cent to 2.51 million.

EurActiv voices opposition:

French senators strongly attack EU-US trade deal

During a debate in the French Senate, all political parties harshly criticised the Transatlantic Trade and Investment Partnership (TTIP), but the French government defended the potential deal, EurActiv France reports.

The minister in charge of foreign trade, Nicole Bricq, admit with regret that France was the country where the mobilisation against what they call the ‘transatlantic treaty’, is the strongest.

A debate, which took place in the Senate on Thursday (9 January), showed bipartisan opposition to the agreement and the government found itself somewhat isolated on the topic after facing criticism from speakers from all political sides.

Though we usually avoid sexcapades, in the case of the French President trysts have transformed into troubles for an already deeply troubled regime. From The Independent:

The French First Lady Valérie Trierweiler has demanded a “rapid clarification” of her status – both romantic and public – following President François Hollande’s reported love affair with a 41 years old actress.

The President’s official companion has told a French journalist that she believes  that an official statement needs to be made to the French people despite Mr Hollande’s insistence that the episode is merely part of his “private life”.
François Hollande And Julie Gayet’s ‘Love Affair Flat’ Linked To Corsican Mafia

Ms Trierweiler, 49, was still in hospital suffering from depression and shock tonight, three days after Closer magazine revealed that Mr Hollande was having an affair with the actress Julie Gayet. Her office announced that doctors judged that she needed more rest and she would not leave the hospital as originally planned today.

“She needs to recover after the shock she received,” her office said. “She needs quiet.”

And the latest twist from TheLocal.fr:

Hollande-Gayet ‘love nest’ linked to mafia

Reports in France over the weekend linked a “love nest” allegedly used by President François Hollande and actress Julie Gayet to two figures with connections to the Corsican mob. It is the latest twist in a tale that is dominating the headlines in France on Monday.

The story of French President François Hollande’s alleged affair with an actress took a darker turn over the weekend when reports surfaced saying the suspected trysts took place in a Paris apartment owned by someone with ties to the Corsican mob.

The apartment on Rue du Cirque, not far from the Elysée Palace in the city’s 8th arrondissement, was allegedly made available to Hollande and actress Julie Gayet by a woman who was married to a recently slain Corsican mafioso and who is the ex-wife of Michel Ferracci, who also has alleged links to Corsican mafia, French newspaper Le Monde claimed.

Spain next, first with a pitch from TheLocal.es:

Spanish PM to sell recovery in Obama talks

Spain’s Prime Minister Mariano Rajoy is set to visit US President Barack Obama at the White House on Monday in what some in the Spanish media have called a long overdue meeting.

It has taken two years and one month, but Rajoy will finally make an official visit to the residence of the US President on Monday. In the heavily scrutinized world of international diplomacy, such details can take on significance.

Spain’s El Mundo pointed out on Monday that Barack Obama only waited 10 months after being elected to invite ex-President José Luis Rodríguez Zapatero. The daily also pointed out that the leaders of Greece and Italy hadn’t had to wait so long to pay their respects to Obama.

El País boosts:

Economy grew 0.3 percent in fourth quarter, De Guindos says

  • Minister presents advance figures to bolster government claims that recovery is gaining pace

Economy Minister Luis de Guindos announced on Monday in Congress that the fledgling recovery of the Spanish economy gained more strength in the fourth quarter of 2013. According to advance figures from the government, GDP grew 0.3 percent between October and December compared with the previous quarter. That is two points higher than the figure for the second quarter, when Spain finally managed to leave behind the longest recession of the democratic era.

During his appearance in Congress, De Guindos summed up the positive signs now appearing in the Spanish economy, with the aim of bolstering the government’s argument that the recovery is gaining pace. The country is now “faced with a recovery, albeit fragile, but one that is, after all, a recovery,” he said.

The Portugal News re-ups:

Prime Minister to seek second mandate

Pedro Passos Coelho announced his intention to seek a second mandate as Portuguese Prime Minister and will correspondingly stand as candidate for the leadership of the Social Democrat Party, the senior coalition party in power, he told a party meeting in a Lisbon hotel.

“My intention is to once again stand as candidate for the leadership of the Social Democrat Party and thereby to campaign in the next parliament elections as a candidate for Prime Minister,” Passos Coelho said to warm applause.

The party leadership elections are due on January 22 with national elections due in 2015.

The current prime minister added that the party leadership election was taking place “in the middle of an ongoing process” that had first begun in 2010 when he took over the party leadership when still in opposition.

From Lisbon, have we got a deal for you! From EUbusiness:

Barroso says Portugal would do well to take new aid programme

European Commission President Jose Manuel Barroso said Monday taking a precautionary credit line would boost confidence in Portugal once it finishes its EU-IMF rescue later this year.

“A precautionary programme would without a generate more confidence and security,” Barroso was quoted as saying by Portuguese journalists in Brussels.

“It would be the best option, in principle, but it is still a little early to decide.”

As Portugal nears the end of its 78-billion-euro ($106-billion) EU-IMF bailout in May there has been increasing discussion whether it will follow in Ireland’s footsteps and forgo any of the EU’s new assistance programmes.

Off to Italy and a declaration from a rising new party via AGI:

M5S voters support decriminalizing clandestine immigration

The on-line M5S referendum on decriminalizing clandestine immigration attracted 24,932 respondents, who expressed their vote on Beppe Grillo’s blog.

15,839 voters were in favour of decriminalization and 9,093 were against. .

The harsh reality from TheLocal.it:

‘Migrants are treated like dogs’: Italian MP

In December, shocking footage showed migrants being disinfected at a migrant “welcome centre” on the southern Italian island of Lampedusa. Shortly after, MP Khalid Chaouki spent a number of nights at the centre to experience just how bad conditions for migrants are. He speaks to The Local about what he discovered.

While the Italian government and the EU launched investigations into the Lampedusa centre, Khalid Chaouki flew there to experience for himself what life was like for people arriving on Italy’s shores.

After landing on December 22nd, the Democratic Party (PD) MP found the centre in an “appalling” state, with water leaking into the rooms and “awful” hygiene conditions. Filthy mattresses piled up, while there was nowhere set aside for people to eat, he said at the time.

After the jump crimes, austerity, and punishment in Greece, Turkish tempers, Latin American medicine, an Indian surprise, Thai troubles, Aussie immigration politics, Chinese marketization, a Japanese admonition, and the latest environmental news. . . Continue reading

Headlines of the day II: EconoEcoGrecoFuku


Our excursion into the world of economics, politics, and their impacts on the world we live in begins on a downbeat note from CNBC:

New report says millions of women at risk of falling into poverty, economic ruin

Although in recent decades women have made historic advances in nearly all areas of American public life, a staggering number of women across the country are still teetering on the verge of poverty and economic disaster, a new report released Sunday shows.

The report, co-authored by NBC News special anchor Maria Shriver and the Center for American Progress, takes a wide-angle snapshot of a national economic crisis — seen through the eyes of women. The key findings paint a portrait of an estimated 42 million women — and 28 million dependent children — saddled with financial hardship.

“These are not women who are wondering if they can ‘have it all,’” Shriver wrote in her introduction to the report. “These are women who are already doing it all — working hard, providing, parenting, and care-giving. They’re doing it all, yet they and their families can’t prosper, and that’s weighing the U.S. economy down.”

The Guardian covers banksters being banksters:

Bank bonuses: brace yourself for the great Wall Street trousering

  • The big US banks are about to reward their employees again, to the tune of another £4bn

This is a big week. A very big week. A several-billion-dollar week, in fact, if you happen to be a Wall Street banker.

Yes, it’s the time of year when US banks reveal how much they’ve stuffed into their bonus pools and – by extension – how robust their employees’ trademark braces must be as we realise how much they trousered.

In the first nine months of 2013, the big US banks set aside about £40bn to top up their staffers’ meagre stipends. Analysts reckon Morgan Stanley and Goldman Sachs will pour in another £4bn when they report results this week – meaning little work will be done as bankers focus on pretending they got more than they actually did.

The Progressive has the spreadsheet:

Millionaires: Officially the Real Majority in Congress

For the first time ever, a majority of America’s elected officials in Congress are millionaires.

“Of 534 current members of Congress, at least 268 had an average net worth of $1 million or more in 2012,” a new analysis of financial disclosure forms by The Center for Responsive Politics explains. “The median net worth for the 530 current lawmakers who were in Congress as of the May filing deadline was $1,008,767 — an increase from the previous year when it was $966,000.”

The Senate is where most of the monied members reside, with a median net worth of its current members coming to over $2.7 million. Members of the House tended to be somewhat less wealthy, with a median income of $896,004. With the House and Senate totals averaged together, however, the median net worth in Congress comes out to $1,008,767.

On to Britain with union in name only from Sky News:

IDS Wants Two-Year Ban On Migrant Benefits

  • The Work and Pensions Secretary says he has held talks with other EU countries to forge alliances to prevent “benefit tourism”

EU immigrants may have to wait for up to two years to claim benefits in the UK – rather than the current period of three months, Iain Duncan Smith has said.

In an interview with the Sunday Times, the Work and Pensions Secretary said he had been speaking to other member states including Germany, Italy and the Netherlands who were supportive of the idea.

He said Britain should ask migrants to “demonstrate that you are committed to the country, that you are a resident and that you are here for a period of time and you are generally taking work and that you are contributing”.

BBC News follows up:

Nick Clegg backs ‘eminently sensible’ EU benefit changes

It is “sensible” to consider further curbs to the benefits EU migrants can claim, the deputy prime minister says.

It comes after Work and Pensions Secretary Iain Duncan Smith said he was talking to other EU governments about trying to restrict access to welfare.

Nick Clegg told BBC Radio 5 live it was right to insist migrants “jump through hoops” before claiming benefits.

And The Observer delivers a setback:

Brussels slaps down British threats to rewrite immigration rules

  • President of European parliament says UK has ‘no chance of curbing basic principle of free movement’

Brussels has stepped up its fightback against UK attempts to curb EU immigration as leaders of the European parliament declared that rules on freedom of movement were completely non-negotiable, and made clear that attempts to change them would be blocked.

In the latest response to calls from UK politicians to unpick the EU treaties and rewrite one of its founding principles, the European parliament’s president, Martin Schulz, said that while he took UK demands for reform of the EU “very seriously” there was no question of the parliament agreeing to reopen the rule-book on free movement.

The Independent talks divorce:

House of Lords warned not to ‘ignore the public’s wishes’ on EU referendum debate

The House of Lords has been warned that it would be “ignoring” the wishes of ordinary people if it blocks a referendum on Britain’s membership of the EU.

Peers are debating the Conservatives’ bid to lay down in law a public vote on membership.

James Wharton, the Tory MP for Stockton South who steered the Bill through the Commons, said: “It is extremely important that the House of Lords recognise that this Bill, which has been passed through every stage of the democratically-elected House of Commons, needs to pass in order to give the British people a say on this very important issue.

“It would be strange indeed for the unelected House of Lords to block a Bill which is to legislate for a referendum.”

And The London Telegraph renegotiates:

Chancellor to back Britain staying in a ‘reformed EU’

  • George Osborne will say UK has allies in its push for more liberal regulations from Brussels

George Osborne is to say that Britain should remain in a reformed European Union and that the UK has allies in its push for liberalisation of regulations that could hinder growth.

In a major speech on Europe next week, the Chancellor will say that as the economic recovery puts Britain at the top of growth league in the European Union, the reform agenda is gaining momentum.

He will also make it clear that Britain is gaining support as it pushes for changes in the way the EU operates.

Sky News sells out:

Jaguar Land Rover: Record Breaking World Sales

Midlands-based manufacturer JLR sets sales records in 38 countries worldwide as demand rises sharply in the last year.

It is thought sales have been doing particularly well in Germany, as well as the rapidly growing developing economies of India and China.

In the UK Jaguar sales were up 15% and Land Rover sales were up 13%.

Globally Land Rover is proving the firm favourite among customers representing the largest share of sales with 348,383 sold in 2013, an increase of 15%. But demand for the luxury Jaguar has surged over the last 12 months, almost doubling its international sales to 76,668.

The Observer again, with inflation:

Childcare costs soar by 19% in just one year – survey

  • Parenting expert says increase is ‘triple whammy’ and financial burden on families is like a ‘second mortgage’

The cost of childcare in Britain has soared by 19% over the past year, according to research given exclusively to the Observer, which also found that a quarter of unemployed parents want to return to work but cannot afford to have their children looked after.

Findababysitter.com, a childcare search website, said parents were struggling with returning to work because of the availability and cost of childcare, which often amounted to a “second mortgage”.

The Observer again, with business as usual:

Lobbying bill will tarnish Britain, says UN official

  • UN rapporteur on freedom of assembly launches fierce attack on bill, while charities demand further concessions

A top UN official has made an outspoken attack on the government’s controversial lobbying bill, describing it as a “stain” on democracy that will undermine elections in the UK, as leading charities demand fresh concessions on the proposals from coalition ministers.

Before key votes on the bill in the House of Lords this week, Maina Kiai, the UN rapporteur on rights to freedom of peaceful assembly and association, says the legislation, if not amended further, will reduce the ability of people in civil society to express their views before elections, while doing little or nothing to tighten controls on corporate lobbyists.

In an article published on Sunday on this newspaper’s website, Kiai, a Kenyan lawyer appointed by the UN’s human rights council, said: “Although sold as a way to level the electoral playing field, the bill actually does little more than shrink the space for citizens – particularly those engaged in civil society groups – to express their collective will. In doing so, it threatens to tarnish the United Kingdom’s democracy.”

On to Sweden and raw reality from TheLocal.se:

‘Sweden’s mineral wealth is sold too cheaply’

Critics argue that Sweden is selling its vast mineral resources far too cheap, raising the idea that the country should follow neighbouring Norway and establish a wealth fund to invest for future generations.

While concession fees are kept deliberately low in order to attract miners, critics say all nine million Swedes could and should benefit the same way that their Norwegian neighbours all profit from their national oil wealth.

“This is something we own together,” said Jesper Roine, associate professor at the Stockholm School of Economics. Besides, he added, minerals have an intrinsic value even before they are dug out of the earth, and they should be priced accordingly, the way all other raw materials are priced.

Seeking alliance from The Independent:

France’s Marine Le Pen wants her far-right party to join forces with Ukip and destroy ‘European Soviet Union’

The leader of the France’s Front National believes the far-right party and Ukip share a common set of values and should join forces to bring down the “European Soviet Union”.

Marine Le Pen said she expected the “European system… to explode” and suggested Ukip might decide to form a partnership with the Front National and other far-right parties in the future to help make this happen.

However Ukip’s leader Nigel Farage, who insists his party is “strictly non-racist” and “libertarian”, dismissed the idea.

Spain next, and TheLocal.es, blinded by love:

In-love Spanish princess ‘innocent’ of graft: lawyer

Spain’s Princess Cristina loves and trusts her husband “come hell or high water” as he faces a corruption probe and is innocent of wrongdoing herself, her lawyer said Friday.

King Juan Carlos’s youngest daughter, the blonde-haired, 48-year-old Cristina, was summoned this week to appear on March 8th at a court in Palma de Mallorca as a suspect in alleged tax and money-laundering crimes.

Cristina is suspected of being tied to the activities of her husband, Inaki Urdangarin, a 45-year-old former Olympic handball player who has been under investigation since 2011 over the suspected embezzlement of money from public bodies.

El País chats up:

Royals relieved that Cristina will testify in tax fraud case

  • Princess drops appeal plan after being made aware of need to address growing scandal by king’s palace circle

Spain’s royal family is relieved that Princess Cristina will not appeal the preliminary charges against her and will instead testify in court over allegations of tax fraud and money laundering.

Her decision is “very positive,” said the Royal Household in a statement Saturday.

Cristina de Borbón’s lawyer had said on Tuesday that they would appeal the judge’s decision to make her a formal target in the investigation, as had occurred on a previous occasion in April 2013. But on Friday Miquel Roca announced in writing that his client was renouncing this right and would testify voluntarily on March 8.

thinkSPAIN sets limits:

Out-of-work Spaniards abroad see healthcare entitlement capped at 90 days

LONG-TERM dole claimants in Spain will lose their entitlement to free medical care via their European health cards after they have been out of the country for three months in a new government ruling.

This does not apply to students or tourists, but does apply to Spaniards and other EU nationals resident in Spain and entitled to healthcare cover there who leave the country with the intention of this being a longer-term arrangement.

After 90 days, they will be required to have registered as residents in the country they have travelled to and secured their entitlement to healthcare in their destination.

TheLocal.es protests:

Crowds defy Madrid in sensitive Basque demo

Tens of thousands of protesters in Spain’s Basque Country defied Madrid on Saturday by holding a mass demonstration marked by tensions over jailed members of the armed separatist group ETA.

Crowds filled the streets in the northern city of Bilbao in a march for “human rights, understanding and peace”, after a judge banned another demonstration planned to demand concessions for the prisoners.

The treatment of imprisoned ETA convicts is one of the most delicate issues in a standoff between the authorities and western Europe’s last major armed secessionist movement.

Europe Online has numbers:

Poll: Spain’s Socialists more popular than ruling conservatives

Spain’s opposition Socialists have the lead over the ruling conservative party for the first time since its election defeat two years ago, an opinion poll showed Sunday.

The survey published in El Pais newspaper showed 33.5 per cent of voters support the Socialists while 32 per cent were behind Prime Minister Mariano Rajoy’s People’s Party (PP).

Elections are scheduled for next year.

On to Italy and a Bunga Bunga blast from AGI:

Beppe Grillo decries continued presence of Berlusconi

Beppe Grillo, the leader of Italy’s anti-establishment Five Star Movement, decried Silvio Berlusconi’s continued presence on the Italian political scene.

“There’s a guy walking around Italy with the arrogance of someone who has gone unpunished. The Five Star Movement kicked him out of parliament after 20 years of dividing up Italy with the PD (centre-left Democratic Party). But it’s as though he never left. Actually, he’s risen from the ashes as Mr Renzi (leader of the Democratic Party) considers him his main interlocutor for the new electoral law. The dummy from Florence and the author of the pig’s ear of an electoral system (which changed Italy’s majority system into a proportional one) united for a New Italy. Isn’t it just wonderful?” he posted on his blog.

TheLocal.it covers a shakeup shakeup:

Mayor of Italy earthquake town quits over graft

The mayor of the Italian town of L’Aquila, which was partially destroyed in a 2009 earthquake that killed 309 people, stepped down Saturday following a corruption scandal involving members of his team.

“I have no legitimacy left. I am tired. I am angry. I have suffered a full-on media attack. That is why I am resigning,” Massimo Cialente told reporters. “I have understood that I am no longer useful in this town and I am maybe even an obstacle,” he added.

Four people from his administration were placed under house arrest Wednesday for alleged bribery linked to reconstruction contracts following the earthquake in the central Italian town.

Four more have been notified they are under investigation, including deputy mayor Roberto Riga and a local official in charge of restoring damaged monuments.

After the jump, the latest from Greece, Ukrainian protest, wealth and servitude in the Gulf, an Argentine appeal, Pakistani peace talks, Indian uncertainty, Thai troubles, Chinese “reforms,” Japanese numbers, and Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoPoliFukuRealism


Much happening, and the troubles continue at Fukushima.

We begin our econocentric coverage close to home [literally], with the Oakland Tribune:

Alta Bates Summit Medical Center to slash 358 jobs in Oakland, Berkeley

Alta Bates Summit Medical Center is cutting 358 positions and shutting down its skilled nursing facility.

Alta Bates Summit, which has several East Bay campuses, will eliminate 195 jobs at Summit in Oakland, 133 jobs at Alta Bates in Berkeley and 30 at Herrick in Berkeley, according to the state Employment Development Department.

The company also is closing its skilled nursing facility and infusion program at Summit in Oakland, a hospital spokeswoman said.

SINA English injects:

Chinese investment in US doubled in 2013: study

China’s investment in the United States doubled to $14 billion last year despite sometimes rocky political ties, with private firms leading the way, said a study out Tuesday.

About half of the value consisted of Shuanghui International’s takeover of prominent pork producer Smithfield Foods, a $7.1 billion deal that marked the largest ever Chinese acquisition of a US company.

But the report by the Rhodium Group, a New York-based firm that looks closely at Chinese investment, found that the total number of deals had also risen from 2012 to 82. It said that Chinese companies accounted for 70,000 full-time jobs in the United States.

The total value of investment hit a record high of $14 billion, with high-profile deals in real estate as well as Chinese investors took stakes in the General Motors Building and Chase Manhattan Plaza in New York.

Bloomberg View’s The Ticker finds bubbles in your bong:

Dude, This Pot Stock Is Totally in a Bong Bubble

Shares of Medbox Inc. soared 85 percent yesterday to $73.90, and have been on a wild ride today, trading as high as $93.50 and as low as $46.90. It seems investors got all stoked about the company’s prospects selling vending machines with fingerprint readers to dispense marijuana, now that recreational pot is legal in two states, Colorado and Washington. Yesterday the company, which trades on the Pink Sheets, issued a news release saying “it has improved on its products for use in recreational and medical marijuana facilities.” The day before that, it issued a news release to tout the appearance of its chief executive officer, Bruce Bedrick, on CNBC.

There hasn’t been much else to explain why Medbox’s stock market value suddenly topped $1 billion this week. As recently as Dec. 26, before Colorado’s new law took effect, the stock was trading for about $10. Nor does there seem to be much basis for believing the company should be worth so much now. Medbox had net income of about $23,000 on sales of $2.9 million during the six months ended June 30, according to a prospectus it filed with the Securities and Exchange Commission, which it has since withdrawn.

Bloomberg covers other agricultural prophets:

Monsanto Profit Tops Estimates on Soybeans and Roundup

Monsanto Co., the world’s largest seed company, reported fiscal first-quarter earnings that topped analysts’ estimates on rising sales of engineered soybean seeds and Roundup herbicide.

Net income in the three months through November increased to $368 million, or 69 cents a share, from $339 million, or 63 cents, a year earlier, Monsanto said today in a statement. Profit excluding a discontinued business was 67 cents, beating the 64-cent average of 17 estimates compiled by Bloomberg. Revenue rose 6.9 percent to $3.14 billion, topping the $3.07 billion average of 15 estimates.

Chairman and Chief Executive Officer Hugh Grant is focused on selling more genetically modified seeds in Latin America to drive earnings growth outside the core U.S. market. Sales of soybean seeds and genetic licenses climbed 16 percent, and revenue in the unit that makes glyphosate weed killer, sold as Roundup, rose 24 percent.

MintPress News sounds a Santayana alert:

Absence Of History, Social Studies Requirements In US Education System Causes Concern

Many have expressed concern that there is no federal requirement that students learn about history.

Creating universal education standards may have been President Barack Obama’s intent when he and Secretary of Education Arne Duncan created the Common Core K-12 educational curriculum in 2009. But as education officials have begun to slowly integrate the program into private, public and home-schooled children in about 46 states so far, many education professionals are wondering why there is no social studies or history requirement.

Though some blame social studies teachers for a lack of history requirements — calling a bulk of social studies teachers underqualified — others say the reason the U.S. doesn’t have any history requirements is because Americans don’t always agree on what actually happened in American history.

Sociological Images is stunned:

Teachers Offered Personal Loans to Buy School Supplies

If you’re looking for just one image that says a thousand words about what’s wrong with America, here’s a contender.  It is a screenshot of an email sent to members of the Silver State Schools Credit Union:

BLOG Teacher loans

Yep, it’s an invitation to K-12 teachers to go into debt to do their job.

The London Daily Mail floats it:

The latest perk of working for Google – free private ferry service to work

  • Private passenger catamaran service launched across San Fransisco Bay
  • It carries up to 150 workers to and from the Google HQ near Redwood city
  • Firm’s shuttle bus service had been targetted by angry protesters
  • Employees already enjoy massages, free gourmet food and ‘20 per cent time’

Al Jazeera America blows back:

San Francisco to tax tech companies for employee shuttles

  • City will charge Google, Facebook and others that use public bus stops in an effort to combat traffic, public resentment

San Francisco plans to start regulating employee shuttles for companies like Google, Facebook and Apple, charging a fee for those that use public bus stops and controlling where they load and unload.

The influx of private shuttle buses, which transport thousands of San Francisco workers to their jobs, has created traffic problems on the city’s narrow streets, blocking public bus stops during peak commuting hours.

For some locals, these buses have become a tangible symbol of economic inequality and the aggressive wave of gentrification sweeping through large swaths of San Francisco and Oakland as a result of the burgeoning technology industry.

CNN Political Unit numbers a sea change:

CNN Poll: Americans say marijuana is less dangerous than booze or tobacco

According to a new national poll, marijuana is not as wicked as other illegal drugs like heroin and cocaine, and much less dangerous than legal substances like alcohol and tobacco.

That’s one reason why a CNN/ORC International survey indicates that support for legalizing marijuana is soaring, and why that same support does not extend to hard drugs.

A CNN/ORC poll released Monday showed that 55% of all Americans think that the use of marijuana should be legal – a solid majority and more than triple the 16% who said the same thing a quarter century ago. But according to numbers released Tuesday, the percentage is nowhere near as high as the 81% who say alcohol should remain legal or the 71% who believe that tobacco use is OK.

Austerian NAFTA reality from the Americas Program of the Center for International Policy:

No Golden Pond for NAFTA Generation Retirees

Twenty years after the promoters of the North American Free Trade Agreement (NAFTA) heralded a new age of prosperity, tens of millions of people in the member nations of the trinational trade and investment pact look forward to an impoverished retirement.  While in the United States and Mexico, huge segments of the working-age population could wind up with a retirement income-if any at all- befitting paupers, even in relatively better-off Canada the status of retirees is showing signs of slippage.

As all three NAFTA countries undergo workforce aging trends, the implications of a multinational retirement crisis in the coming years will be profound for the economic and social health of the region. Recent reports, including the one issued last month by the Organization for Economic Co-operation and Development (OECD), carry somber warnings for the futures of millions as they approach their golden years.

For U.S Senator Elizabeth Warren (D-Mass), the emerging retirement crunch is a “crisis that is as real and as frightening as any policy problem facing the United States today.”

Across the Atlantic with a plateau from Europe Online:

Eurozone unemployment rate stuck at record 12.1 per cent

Unemployment in the eurozone remained stuck at a record high of 12.1 per cent in November, new data released on Wednesday showed, as the currency bloc struggles to recover from a debilitating economic crisis.

The jobless rate was initially believed to have dropped in October for the first time in almost three years, but Wednesday’s data – issued by the European Union’s statistics agency Eurostat – showed that in fact it has remained unchanged since April 2013.

The eurozone managed to pull out of recession earlier this year, but unemployment has remains stubbornly high. The bloc experienced its last decline in the jobless rate in February 2011.

MarketWatch frets:

Draghi faces deflation threat as ECB, BOE meet

  • Euro risks selloff if Draghi mentions recent strength, hints at further action

The Bank of England and the European Central Bank are both expected to keep monetary policy on hold Thursday. What ECB President Mario Draghi says about low inflation could signal whether the bank expands stimulus at future meetings and move the euro.

The BOE will release its decision at 7 a.m. Eastern. The central bank doesn’t normally release a statement when there is no change in policy, but central-bank watchers say that the BOE could be compelled to do so in light of the rapidly falling unemployment rate and what it means for U.K. interest rates.

New Europe admonishes:

US tells EU, Germany to act on banks and surplus respectively

The US wants Germany to boost its domestic demand and Europe as a whole to strengthen its banks. This much has so far become clear during Jacon Lew’s, the US Treasure Secretary’s visit to the continent. Lew was in Berlin today and visited France on January 7.

“We continue to believe that policies that would promote more domestic investment and demand would be good for the German economy and the global economy,” Lew told a news conference after meeting German Finance Minister Wolfgang Schaeuble.

Even though the newly installed grand coalition between Merkel’s Christian Democrats and the SDP has is planning to introduce a national minimum wage and invest in infrastructure, the fundamentals of its economic and European approached will remain unchanged.

Britain next, with a bubbly BBC News:

UK house prices rose by 7.5% in 2013, Halifax says

House prices across the UK rose by 7.5% last year, according to the Halifax, the country’s largest mortgage lender.

However, Halifax said prices actually fell by 0.6% in December, taking the average price of a property to £173,467.

Last week, the Nationwide building society said house prices had risen by 8.4% in 2013.

Sky News prepares for peasants massing:

Boris Wants Water Cannon For London’s Streets

Boris Johnson says the weapons will only be used in “extreme circumstances” but the 2011 riots show why police need them.

Boris Johnson has requested the Metropolitan Police to be able to use water cannon on the capital’s streets by this summer.

The London Mayor said the weapons would be used only in “the most extreme circumstances”, but there are fears the cannon could be deployed to break up small-scale legitimate protests. He said the water cannon were necessary in case there was a repeat of the summer riots of 2011.

The Guardian is buzzing:

UK faces food security catastrophe as honeybee numbers fall, scientists warn

Crop pollination via honeybees sinks to second lowest in Europe as study calls for greater protection of wild pollinators

Europe has 13 million less honeybee colonies than would be needed to properly pollinate all its crops, research shows. Photograph: Judi Bottoni/AP

The UK faces a food security catastrophe because of its very low numbers of honeybee colonies, which provide an essential service in pollinating many crops, scientists warned on Wednesday.

New research reveals that honeybees provide just a quarter of the pollination needed in the UK, the second lowest level among 41 European countries. Furthermore, the controversial rise of biofuels in Europe is driving up the need for pollination five times faster than the rise in honeybee numbers. The research suggests an increasing reliance on wild pollinators, such as bumblebees and hoverflies, whose diversity is in decline.

Iceland next, and a piteous lament from the Reykjavík Grapevine:

Former Landsbanki Manager “Psychologically Tortured” By Government

The lawyer for former Landsbanki manager Sigurjón Þ. Árnason says that his client is being “psychologically tortured” by the state.

In a column he wrote for Fréttablaðið, Sigurður G. Guðjónsson, Sigurjón’s lawyer, contends the government is needlessly prolonging the legal process in his case, whilst at the same time “continuously blabbing about his guilt to the media.”

For the unfamiliar, Sigurjón was charged with market manipulation during his time as Landsbanki’s manager, leading to the eventual collapse of the bank. The resolution committee of the new Landsbanki is seeking compensation from Sigurjón for the damage the bank incurred under his watch.

Germany next with Europe Online:

German economy picks up speed as industrial sector gains ground

The German economy appears to have ended last year on a strong footing with a solid rise in both exports and factory orders helping to fire its key manufacturing base.

While figures released Wednesday by the Ministry of Economics showed monthly factory orders rebounded by 2.1 per cent in November, the statistics office said exports rose for the fourth consecutive month in November, climbing by 0.3 per cent.

The data provides “further evidence that the economy’s industrial backbone is strengthening again,” said ING Bank economist Carsten Brzeski.

Nationalist umbrage from EUbusiness:

Germany to probe welfare fraud by immigrants

The German government said Wednesday it will look into toughening measures against abuse of its welfare system by immigrants in light of fears of an influx from poor EU member states Romania and Bulgaria.

Chancellor Angela Merkel led a cabinet meeting of her new “grand coalition” where the government agreed to task a commission with making recommendations by mid-June.

“It will address the possible consequences of immigration and open borders — both things the government welcomes and wants,” Merkel’s spokesman Steffen Seibert told reporters.

Deutsche Welle labors:

Amazon staff defend company against unions

For months, unions have been trying to pressure Amazon Germany to pay better wages. But now thousands of employees have come out defending Amazon. Are the unions fighting a lost cause?

The remarkable solidarity of the workers with their employer is in stark contrast to the picture painted by the media. That has focussed on the poor working conditions at Amazon Germany. For months, the company has been under fire for its poor wages, permanent stress and the lousy mood among the staff.

Yet when Verdi called strikes in recent weeks, only very few employees took part. The union wants to get a pay deal for them with a pay level similar to other companies in the mail order business. Currently, Amazon pays the lower rates applicable to the logistics sector.

France next, and schismatics from EurActiv:

French leftist coalition blows up ahead of EU, local elections

The French Left Party’s decision to suspend its membership of the European Left has highlighted tensions with their traditional communist allies, which could seriously damage both party’s results at the forthcoming EU elections in May.

As the EU elections approach, European political parties from all sides are gearing up to nominate their candidates for the European Commission’s top job.

The Associated Press convicts:

Frenchwoman fined after Muslim veil prompted riots

A French court has convicted a woman for insulting police who ticketed her for wearing a face-covering Muslim veil, banned by French law.

The confrontation between Cassandra Belin, her husband and police triggered riots in the Paris suburb of Trappes last year. Her lawyer, Philippe Bataille, says Belin was fined 150 euros and given a one-month suspended sentence Wednesday.

The lawyer also argued that the veil law is unconstitutional, and asked for it to be sent to the Constitutional Court. The lower Paris court Wednesday threw out that request.

Spain next, and another decline from El País:

Household savings rate falls further as income drops

  • Families cut back on spending in third quarter of last year

The household savings rate in Spain in the third quarter of last year declined further despite lower consumer spending as high unemployment and downward pressure on wages reduced income.

The National Statistics Institute (INE) said Wednesday that the savings rate in the period July-September of last year declined to 9.2 percent from 10.0 percent in the fourth quarter. That was the lowest rate for the third quarter since 2007. On a four-quarter moving basis, the rate dropped to 10.5 percent from 10.7 percent in the four quarters to June.

Gross disposable household income in the period declined 1.6 percent from a year earlier to 162.521 billion euros as a result of a fall of 1.9 percent in wages. Consumption declined an annual 0.4 percent to 147.037 billion euros.

El País again, this time in opposition:

PP deputy congressional speaker calls for free vote within ruling party on abortion

  • Celia Villalobos says she “represents many people who are against” the proposed restriction on terminations

The rift within the ruling conservative Popular Party (PP) over its controversial proposed reform of the abortion law that greatly restricts the right to terminate pregnancy grew on Wednesday after a key figure in the group called for a free vote on the issue in parliament.

Deputy Congressional Speaker Celia Villalobos signaled her opposition to the proposed new law, which does not automatically give women the right to abort in cases of severe fetal malformation, during a meeting of the PP’s executive committee on Wednesday, according to sources.

“I represent many people who are not in agreement with the reform that has been presented,” Villalobos said. “I ask for a free vote.” Villalobos abstained during a congressional vote in 2009 on the abortion law put forward by the former Socialist government of Prime Minister José Luis Rodríguez Zapatero and was sanctioned by the party for doing so.

Lisbon next, and a departure date from Xinhua:

Portugal could exit bailout program on May. 17: official

Portugal has received yet another thumbs up that the country’s 78-billion-euro bailout program is coming to an end.

Vice President of the European Parliament Othmar Karas, who is ending a visit to Portugal on Tuesday, said that the bailout program could terminate as soon as May. 17, one week before the European elections.

“I’m sure that Portugal can end the program on the 17th of May of 2014, one week before the European elections,” said Karas, quoted by Portugal’s Lusa News Agency Lusa.

Italy next, and a new record from the London Telegraph:

Italian joblessness hits record as it seeks higher foreign investment

Italian joblessness has hit a fresh high, underlining the challenge for the country’s fragile coalition in convincing the international markets it is on the path to recovery.

Unemployment hit 12.7pc in November, up from October’s 12.5pc and the highest on record. Youth unemployment, at 41.6pc, is also at an all-time high.

The figures show that tentative signs of recovery in Italy’s recession-battered economy have failed to benefit the labour market.

Corriere della Sera knows where the bodies are buried:

Parliamentarians, Priests and Gangsters in Tax Consultant’s Secret Files

  • List found on computers belonging to Paolo Oliverio, arrested on charges of laundering underworld funds

The files detail confidential relations with senior clerics, secret service and financial police officers, business figures and politicians. Paolo Oliverio, arrested in early November on charges of manipulating the internal appointments and business dealings of the Camillian religious order, was actually the go-to accountant for many institutional and business figures.

But, add investigators, he was also the man who laundered cash for ‘Ndrangheta gangsters and some of Rome’s home-grown criminals. Mr Oliverio was privy to a great many secrets, as has emerged from the thousands of files found on the computers and pen drives seized when he was arrested. Many now fear what those files could reveal.

After the jump, Greek posturing, Turkish purging, Israeli divestment, Brazilian numbers, African refocusing, India axes and politics, Thai and Cambodian troubles, Chinese neoliberalism, Japanese economic questions and massive food contamination, and the latest Fukushimapocalyp;se Now!. . . Continue reading

Headlines of the day II: EconoGrecoFukuPhobe


We begin with the global stories, first with a warning from CNBC:

1930s-style debt defaults likely, says IMF research

Many advanced economies are likely to require financial repression, outright debt restructuring, higher inflation and a variety of capital controls, a new research paper commissioned by the International Monetary Fund (IMF) has warned.

The magnitude of today’s debt in Western economies will mean fiscal austerity will not be sufficient, Harvard economists Carmen Reinhart and Kenneth Rogoff said in the report, as policymakers continue to underestimate the depth and duration of the downturn.

“It is clear that governments should be careful in their assumption that growth alone will be able to end the crisis. Instead, today’s advanced country governments may have to look increasingly to the approaches that have long been associated with emerging markets, and that advanced countries themselves once practiced not so long ago,” they said.

More from the London Telegraph:

IMF paper warns of ‘savings tax’ and mass write-offs as West’s debt hits 200-year high

Debt burdens in developed nations have become extreme by any historical measure and will require a wave of haircuts, warns IMF paper

New Europe has the winners:

Top 300 billionaires worth $3.7 trillion

Billionaires got richer in 2013

The top 300 billionaires on the planet got richer in 2013 by $524 billion according to the Bloomberg Billionaire index.

According to the index, the aggregate net worth of the world’s top 300 billionaire stood at $3.7 trillion at the market close on December 31. Overall, only 70 billionaires recorded a fortune loss in 2013 compared with last year. John Catsimatidis, the billionaire founder of real estate and energy conglomerate Red Apple Group Inc., told Bloomberg in a telephone interview. “The rich will keep getting richer in 2014…Interest rates will remain low, equity markets will keep rising, and the economy will grow at less than 2 percent.”

The year’s biggest gainer was Bill Gates, the founder of Microsoft who saw his fortune increasing by $15.8 billion to $78.5 billion. The 58 year old tycoon, is officially the richest individual on the planet. In Europe, Amancio Ortega held once again on to his title as Europe’s richest person. His company, Inditex, the world’s largest clothing retailer, rose 14 per cent during 2013. Bloomberg reported that the richest man in Europe bought an office building in London’s West End for 410 million pounds, according to a person with knowledge of the matter.

“Billionaires are asking what they should do with their money in 2014,” Mark Haefele, Global Head of Investment for UBS AG’s wealth-management unit, said by phone to the US financial news agency. “Central banks will continue to be supportive, so equities will likely continue to rise during the year,” Mr. Haefele stressed.

Off to the U.S., first with SINA English:

U.S. sees slowest population growth rate since the Great Depression

America’s population is growing at its slowest rate in decades, and the sluggish economy is mostly to blame, according to one expert.

The U.S. population grew by just 0.72 percent in the year ended July 1, 2013, the Census Bureau reported Monday. That’s the slowest growth rate since 1937. Population growth has hovered at super-low levels for the past few years, according to William Frey, a senior fellow at the Brookings Institution, a nonpartisan research organization. The trend is “troubling,” Frey said, and is due largely to the weak economy.

“This real sharp decline has to do with recession-related issues,” Frey said. “Fewer people come into the country because there aren’t as many jobs, and people are postponing child-bearing.”

The Guardian covers the losers and what their losses mean:

US economy losing ‘up to a $1bn a week’ after jobless benefits cut

  • Harvard economist warns of ‘fiscally irresponsible’ decision
  • Benefits for long-term unemployed allowed to expire last week

The US economy is losing up to a billion dollars a week because of the “fiscally irresponsible” decision to end long-term unemployment benefits, a Harvard economist said on Friday.

Professor Lawrence Katz based his assessment on official forecasts of the impact to the economy of 1.3 million jobless Americans losing benefits

The Times of India covers less-than-minimum wages from Uncle Sam:

US missions abroad paid some local staff less than $1 a day

For all the complaints about India and its diplomats underpaying domestic help on their postings abroad, a 2009 state department evaluation of practices in US embassies and missions abroad revealed that some local employees they hired earn less than $1 a day. In fact, some of them were so poorly paid they had to cut back to one meal a day or send their children to peddle on the streets, the report said.

The report from the state department’s Office of the Inspector General (OIG), which has been dusted off for scrutiny by some Indian officials amid a flaming row between Washington and New Delhi over the l’affaire Devyani, looked at how the US pays more than 51,000 local, non-American employees in about 170 missions abroad. In addition to the hardship caused to the workers because of inadequate pay, the report found that the US pays in what in some cases amounts to universal below-poverty level wages.

China Daily covers a coming loss:

China set to overtake US as world’s biggest goods trader

The value of trade in China’s goods in 2013 is set to exceed that of the United States, making the world’s second-largest economy the world’s top trader for the first time, certainly in modern times.

“Judging from the current statistics, there is a very high possibility that the value of China’s goods trade will have exceeded the US in 2013,” said Wang Haifeng, a researcher with the Institute for International Economic Research at the National Development and Reform Commission.

Jia Huaiqin, deputy president of the Statistical Society for Foreign Economic Relations and Trade of China, echoed the view that China’s overall goods trade value did overtake the US in 2013 unless there was a late and big fluctuation, China Business News reported.

The McClatchy Washington Bureau gives a “F”:

Most Americans say this Congress is worst in their lifetime, CNN poll says

The current Congress is not only unproductive, but most Americans see it as the worst they’ve ever known, according to a new CNN/ORC International poll released Thursday.

Two-thirds said the 113th Congress, which left for the year last week, is the worst in their lifetime. Twenty-eight percent disagreed.

Nearly three in four said this Congress has done nothing to deal with the nation’s problems.

The Independent.ie covers more winners:

Big bonuses for Wall Street staff as stocks reach 16-year high

SHARES of US financial firms just staged their biggest annual rally since 1997, creating a bonanza for Wall Street employees who receive bonuses in deferred stock — though the new year doesn’t hold the same promise.

The KBW Bank Index of 24 lenders increased 35pc in 2013, the most in 16 years. All of its companies rose, the first time that’s happened in a decade. Meanwhile, the Standard & Poor’s 500 Capital Markets Index of 13 securities firms and asset managers surged 49pc, the most on record.

The rise in share prices began in October 2011 and has proved to be a real earner for traders and dealmakers at firms like Morgan Stanley which retooled bonuses after the financial crisis to include more deferred stock.

The Economic Times covers winners-in-the-making:

2014 still promises an abundance of opportunity for Wall Street bankers

The next 12 months may not prove as rich for initial public offerings as the last year. But to Wall Street bankers, 2014 still promises an abundance of opportunity.

And that could include what may be one of the biggest market debuts in years: that of Alibaba, the Chinese Internet behemoth.

Even as global merger activity turned in another lackluster performance, the business of taking companies public soared. The amount raised by IPOs in the United States in 2013 jumped 40 per cent over 2012, to $59.3 billion, according to data from Thomson Reuters.

Quartz has more winners:

Investment banks just had their best year since 2007

Over the past year investment banks have faced a welter of lawsuits and intrusive new rules, suffered costly missteps in the bond market and slashed pay and staff numbers. It may seem surprising, then, that 2013 was actually the best year for the global investment banking industry since 2007, in terms of fees. Total fee revenue rose by 3.1%, to $79.8 billion, according to recently released data from Thomson Reuters.

While Al Jazeera America covers the hopeful:

Amendment would let local Colorado governments regulate big industry

Gas and oil drilling, fracking, mining and other industries would need local approval to operate if amendment is passed

A proposed amendment to the Colorado state constitution would give local governments around the state the authority to restrict or ban oil and gas drilling and other industrial activities – even those permitted by state law – if they pose a threat to the health and safety of residents.

The “right to local self-government” act is being proposed by the Colorado Community Rights Network (CCRN), a new organization that is gaining considerable traction, and will be submitted to the state in its final form within the next week. The act will need 86,105 signatures to qualify for the November ballot.

And 9NEWS has green winners:

Pot sales exceed $1 million on first day

Pot shops did record sales compared to the “medical marijuana days” on Wednesday when recreational marijuana opened. Pot shop owners across Colorado believe they collectively made more than $1 million statewide.

Supporters, critics and other states are waiting to see what will happen in Colorado on day two and beyond. In Perth, Australia, headlines say “Move Over Amsterdam.”

The Contributor Network covers other winners:

TX’s Self-Regulated Pay Day Lenders Now Collecting Tolls on El Paso Roads

Just when you thought you had heard it all with the recent report that a payday lender is in charge of running the regulatory agency for the industry in Texas, score one more for the pay day lending industry.

In El Paso, according to a recent agreement made with the local metropolitan authority, the Camino Real Regional Mobility Authority, Ace Cash Express will begin selling toll tags and collecting tolls on behalf of the transportation authority beginning January 8th.

Across the Atlantic with New Europe:

Eurozone manufacturing records strongest growth in over 2.5 years

Markit economics reported that Eurozone manufacturing recorded the strongest growth in December over the last two and half years.

According to the Markit report, the recovery in the eurozone manufacturing sector accelerated further at the end of 2013. The seasonally adjusted manufacturing index rose for the third month running to post 52.7 in December, up from 51.6 in November. According to Markit, since the index is above 50 it means that the Eurozone manufacturing sector is expanding. For the final quarter as a whole, the sector is recording its best performance in two-and-a-half years, consistent with a quarterly pace of output growth of around 0.6 per cent.

The strong growth of the Eurozone manufacturing was underpinned by solid growth in the Netherlands, Germany, Ireland and Italy, while Austria continued to expand at a robust pace. Meanwhile the Spanish PMI also moved back into expansion territory. More importantly Greece managed to improve its manufacturing output, as her national index rose to a 52-month high and close to the 50 stabilisation point (49.6). However, France moved in the opposite direction with its index falling to a seven-month low and signalling contraction for the twenty-second successive month (47).

Quartz issues a warning:

The euro zone’s credit crunch will get worse before it gets better

Another month, another grim data point on bank lending in the euro zone. The latest numbers, covering November (pdf), show that loans to companies in the euro zone are falling at a 3.9% annual pace, the fastest rate of decline in more than a decade. Loans to households are holding up better, but growth is still only barely positive.

As far as business lending goes, only Finland, Estonia and Belgium managed to eke out growth in November. In Spain, meanwhile, bank loans for businesses are falling by nearly 20% per year.

Spiegel draws lines:

Isolated in Brussels: Merkel Clashes with EU Commission

Angela Merkel at the recent EU summit on Dec. 19 in Brussels: The chancellor has become bogged down in her attempt to lead the Europe.

Even as the euro crisis grows less acute, Europe is stuck. The European Commission is resisting any loss of its power, and many member states are tired of German dominance. Opponents of Europe, including those in Merkel’s camp, sense an opportunity.

On page 157 of the coalition agreement between Germany’s center-right Christian Democratic Union (CDU) and the center-left Social Democratic Party (SPD), at the beginning of the section on Europe, there is an oldie that many German governments have crooned in the past. It has to do with the German language — that is, its use in the European institutions. “German must be put on equal terms, in practice, with the other two procedural languages, English and French,” the document reads.

And New Europe has no surprise:

Bribery of foreign officials goes under-punished in the EU

Recent revelations concerning the bribery of the former Secretary-General for Armaments of the Greek Ministry of National Defense, Antonis Kantas, by German and other EU based companies have underlined the need for the EU’s executive body to take action, Greek MEP says.

Thodoros Skylakakis (ALDE, GR) addressed the European Commission with a question about the non –or under implementation- of international and European agreements on bribery and corruption on international level.

While El País notes a consequence of financial polarization:

The specter of racism in Europe

Gypsies and Jews are facing growing institutional discrimination in the former Soviet bloc countries

In the west, far-right parties are pushing an anti-immigration agenda

Within the European Union, where the depression continues unabated, having already left 25 million people without work and 80 million in poverty, racism is apparently on the rise.

Gypsy children living in the former industrial city of Ostrava, in the Czech Republic, are sent to special schools. They and their families live in what are effectively ghettos, and they are denied the same rights as other Czechs. The situation is similar in Hungary, where 90 percent of Gypsies are unemployed. In Poland, many restaurants refuse them service. It’s the same story in Romania, Slovakia, Slovenia, and Bulgaria.

On to Britain, first with The Guardian:

Bulgarian and Romanian immigration hysteria ‘fanned by far-right’

  • Former Bulgarian foreign minister says talk of surge of eastern Europeans into UK is politically motivated and highly unlikely

Bulgaria’s former foreign affairs minister has criticised the “mass hysteria” surrounding the immigration debate driven by the “far-right”.

Nikolay Mladenov, who was Bulgaria’s foreign affairs minister until last spring, said claims of a sudden influx of Bulgarian and Romanian immigrants to Britain in 2014 were “politically motivated”.

TheLocal.it instructs:

Italians get ‘lessons on UK life’ as arrivals surge

The Italian Embassy in London is set to roll out a series of seminars on British life as the number of Italians fleeing their homeland for the UK continues to grow. The move was prompted by the murder of an Italian teenager in the county of Kent in October.

There a 220,000 Italian inhabitants in the UK, with 85,000 living in London, according to figures from the Registry of Italians Resident Abroad (AIRE).

However, the Embassy estimates there could be as many as 550,000, with 250,000 being in the capital, when taking into account those who are not officially registered, Il Fatto Quotidiano reported.

One of the first lessons they’ll learn, via BBC News:

Migrants to face NHS emergency care charges in England

Migrants and overseas visitors are to face new charges for some NHS services in England, ministers say.

They include extended prescription fees, the introduction of charges for some emergency care and higher rates for optical and dental services.

However, GP and nurse consultations will remain free, and nobody will be turned away in an emergency.

The London Telegraph notes a lack:

UK has fewer doctors per person than Bulgaria and Estonia

The UK has fewer working doctors per head of population than almost all other EU countries, according to EC statistics

The UK ranked 24th out of the 27 European nations, only beating Slovenia, Romania and Poland according to the data, published by the EU Commission as part of its ‘Eurostat regional yearbook 2013′.

RT thinks wishfully:

Bankers need to shift to principles of ‘justice and hope’ – Archbishop

The Archbishop of Canterbury, the principal leader of the Church of England, has urged bank bosses to make a “massive cultural change” in their management style. He says many refuse to accept how they dragged the world economy into crisis in 2008.

Speaking on BBC radio on Tuesday Archbishop Justin Welby said the banking leadership should be serving society as a whole, and not just pursue the interests of shareholders.

“Leadership must have a vision based in justice and hope so that everyone at every level is committed to change,” he said.

The Independent despairs:

Unemployed young people feel they have ‘nothing to live for’

One in three long-term unemployed young people have contemplated suicide

Three quarters of a million young people in Britain believe they “have nothing to live for”, the Prince’s Trust has warned.

The findings showed that 40 per cent of young people have faced symptoms of mental illness, including self-loathing and panic attacks, as a result of being out of work.

The survey also found that long-term unemployed young people across the UK are more than twice as likely as their peers to have been prescribed antidepressants.

The London Telegraph inflates:

Bubble fears as house prices jump most in four years

House prices stage biggest monthly jump in four years, adding to worries of a bubble

House prices have staged their biggest monthly jump in four years, adding to concerns that a new bubble could develop this year.

The average cost of a home rose by 1.4pc in December, the biggest monthly jump since August 2009. This brought the year-on-year increase to 8.4pc.

The Telegraph again, this time with helpful household hints:

Shower together and go to bed early to cut energy bills, supplier First Utility says

Energy supplier that raised prices by 18 per cent last year also advises consumers to give up tea and coffee and play Monopoly

First Utility, Britain’s biggest independent energy supplier, which has about 300,000 customers, issued its advice in a “5:2 energy diet” plan that it said would cut £150 from a typical bill.

It suggested consumers reduce their energy usage on two days of each week by following the tips, such as to “opt for an early night”.

“Up to you what you do,” it said, “but putting out the lights and turning off the box can save you £18 a year – and it could be lots of fun…”

Sky News readies the ax:

Floods: Row Over Environment Agency Job Cuts

Unions said axing around 550 staff from the flood team would “impact directly” on the UK’s ability to deal with future storms.

The Government has been forced to deny claims that austerity cuts will hit flood defences – despite reports that hundreds of frontline jobs are being cut.

On to Norway, with a protest form the right with TheLocal.no:

Economist’s Jensen – le Pen comparison ‘crude’

The Economist has ruffled feathers in Norway after describing the country’s finance minister as a “a sort of Norwegian Marine Le Pen”, in reference to the leader of France’s far-right National Front.

In an editorial in its latest edition, the British magazine drew comparisons between Jensen’s Progress Party and other populist parties in Europe, including the Freedom Party of Austria, Vlaams Belang of Belgium and Britain’s UKIP. It did, however, point out the huge difference between Progress and the Hungarian far-right party Jobbik.

“To the consternation of liberal Scandinavians, Norway’s nationalist-right Progress Party, which secured 16 percent of the vote at recent elections, has been welcomed into a minority government,” it wrote. It also quoted Jensen’s reference to the “rampant Islamification” of Norway.

Sweden next, with intolerance from TheLocal.se:

Mosque swastika attack ‘no isolated incident’

The Nazi graffiti daubed on the central Stockholm mosque on Wednesday night was no isolated incident, with all religious groups in Sweden reporting an increase in hate crimes.

“We receive hate mail, threatening letters or suffer vandalism around twice a month,” said Omar Mustafa , president of the Islamic Association of Sweden. “This type of racist messages are quite common against Muslim communities.”

Statistics from the National Crime Prevention Council (Brottsförebygganderådet – Brå) showed that police reports of hate crimes have increased in recent years, including those against Jewish and Christian groups.

DutchNews.nl covers an unusual trend:

Most workers will be better off in 2014 but high earners take home less

Most workers will have higher take-home pay in 2014 and low earners will benefit most, according to salary processor ADP.

The organisation looked at the impact of government policy on wages and concluded people on salaries of up to €1,750 a month will benefit most from tax cuts and other benefits in 2014.

For example, someone earning the minimum wage – €1,485.60 for an adult – will be €55 a month better off because of lower taxes and a higher tax-free allowance.

Germany next, hungering with Spiegel:

Storming the Food Banks: Charities Struggle with Growing Demand

Food banks and soup kitchens in many German cities are having trouble keeping up with growing demand. Some are now abandoning their free food models in their effirts to continue helping the needy.

Across the country, food pantry workers, most of them volunteers, are sounding the alarm that charitable donations are no longer enough to pay for storage space, delivery trucks and rents. Some are also having trouble stocking enough food to satisfy demand. In Hamburg, for example, food banks have been forced to turn some people away in recent weeks.

Deutsche Welle has discipline:

Chancellor Merkel seeks to nip coalition partners’ row in the bud

Chancellor Angela Merkel has announced the creation of an inquiry to look into whether German laws are sufficient to ward off ‘benefits tourists.’ This seems designed to end a spat between two of her coalition partners.

Deutsche Welle again, with anxiety:

Germany’s fear of job seekers from new EU members

Germany has tried to keep Romanian and Bulgarian job seekers out as long as possible. Other countries seem to be a lot more comfortable with integrating new EU citizens into their labor market.

It’s one of the fundamental rights of EU citizens that they can look for work in any of the member states. By joining the bloc, the people of any new member are granted this right – though not necessarily with immediate effect. Other countries in the 28-member bloc have to the option to somewhat restrict that freedom of movement for a maximum of seven years. In the case of members Romania and Bulgaria, nine of the older members have done so – among them Germany and the United Kingdom.

Since the beginning of the year, this restriction has been lifted, which has reignited a debate in Germany over the country’s immigration laws. It’s a discussion triggered by the Christian Social Union (CSU), the Bavarian sister party to Chancellor Angela Merkel’s Christian Democratic Union. Prominent party members have been warning of what they described as “poverty immigration.” UK Prime Minister David Cameron has raised similar concerns, warning of social welfare “tourism.”

That old revolving door, the German version, with Spiegel:

Conflict of Interest? Ex-Merkel Deputy’s Career Move Under Fire

Ronald Pofalla, until recently Chancellor Angela Merkel’s chief of staff, is reportedly mulling a €1 million a year board position at national railway Deutsche Bahn.

News organizations are reporting that Angela Merkel’s recently departed chief of staff may be heading to German national railway Deutsche Bahn. The move has sparked calls for a ban on government officials from moving to the private sector so quickly.

In recent months, moves by former German ministers and senior politicians into lobbying positions have been a lightning rod for criticism, drawing allegations that these high-profile former decisionmakers are being bought by the private sector. The latest politician to draw unwelcome headlines is Chancellor Angela Merkel’s outgoing chief of staff, Ronald Pofalla, following reports this week that he may join the board at Deutsche Bahn, Germany’s partly government-held national railway.

Europe Online declines:

German car sales slumped in 2013, full-year data shows

German car sales dropped by 4.2 per cent in 2013, full-year data released on Friday revealed, adding to concerns about the troubled European auto industry.

The KBA federal motor licensing authority said it had registered 2.95 million new car sales last year, down from 3.08 million in 2012. That year’s sales already marked a decline of 2.9 per cent from 2011.

On to France with angst from the London Telegraph:

French borrowing costs rising at ‘worrying’ rate

France’s borrowing costs continued to rise as latest figures revealed the manufacturing sector underperformed even Greece

France’s borrowing costs have continued to rise as latest figures revealed the manufacturing sector underperformed even Greece.

France’s manufacturing PMI slipped to 47, lower than the flash estimate of 47.1, and below the 50 mark which separates expansion from contraction. That marks the 22nd consecutive month of contraction for factory activity in the eurozone’s second largest economy.

France, along with Greece, were the only nations to report lower levels of new export business, despite the overall level for the eurozone rising for the sixth consecutive month and at a pace close to November’s two-and-a-half year peak.

TheLocal.fr makes a case:

Firms urge Hollande to act on New Year pledge

Business leaders in France have called on French President François Hollande to act quickly on his New Year pledge to lower burdensome labour costs in return for firms stepping up their recruitment drive. “He must move quickly,” says the head of the leading business union.

“We need to mobilise everyone to win the battle [against unemployment],” Hollande said, in a now familiar rallying call. “That is why I am proposing a responsibility pact for corporations. It is founded on a simple principle: fewer labour taxes on business, fewer restrictions on corporate activities [in exchange for] more recruitment and greater dialogue with trade unions.”

Spain next, with optimism from El País:

Labor market showing signs of strength, government says

On the basis of the latest official jobless claim and Social Security affiliation figures for December released Friday, the government believes that not only has the hemorrhaging in employment been staunched but also that the labor market is starting to show signs of strength.

According to the Labor Ministry, the number of people signed on with the Social Security system declined by 85,041, or 0.52 percent last year, the smallest decline since the current crisis began in 2007. In December alone, the number of workers affiliated rose by 64,097 to 16.357 million. The ministry said the increase was the highest for December since the current comparable historical series was initiated in 2001.

But CNN notes the reality:

Temporary jobs lift Spanish gloom

Prime Minister Mariano Rajoy has predicted a recovery in 2014. And in a radio interview earlier this week, Economy Minister Luis de Guindos said job creation could beat government forecasts.

But labor unions say most of the jobs being created in Spain each month are part time and temporary, with a third providing less than four hours work a day.

Some 92% of new employment contracts last year were temporary, and the number of permanent jobs being created has been in decline for 12 months.

thinkSPAIN has the bill:

Outpatient drugs to be funded by users from this month onwards

ALL regional health authorities across Spain will be required to charge for medication dispensed to outpatients in hospitals from this month onwards after being given a three-month stay of grace.

Whilst the requisite for payment towards hospital drugs was confirmed on October 1, Spain’s 17 autonomously-governed regions were given until January 2014 to put a system in place to allow this to happen.

It will affect anyone who has regular hospital consultation appointments for cancer, eczema, hepatitis, psoriasis, rheumatoid arthritis, HIV and AIDS, degenerative conditions, or who has had a transplant.

El País calls for dismissal:

Socialists call for PP’s draft abortion law to be thrown out

PSOE also wants secret vote on the bill to allow dissident deputies to express their opposition

The congressional spokeswoman for the main opposition Socialist Party (PSOE), Soraya Rodríguez, on Thursday described the ruling conservative Popular Party’s proposed amendments to the abortion law as “pitiful” and “shameful.”

Rodríguez also announced a parliamentary initiative aimed at making congressional voting on the draft law secret, to allow dissident members of the PP to express their opposition to the bill.

TheLocal.es has more:

Spain’s opposition calls for secret abortion vote

Spain’s largest opposition party, the socialist PSOE, is hoping to block the progress of the country’s controversial draft abortion law by making the ballot secret.

The party on Thursday called for an extraordinary session in Spain’s parliament to discuss what PSOE parliamentary spokesperson Soraya Rodríguez called a “shameful” draft abortion law.

The PSOE petition was backed by the left-wing IU with both parties calling for Justice Minister Alberto Ruiz-Gallardón to face questioning in parliament.

El País delivers the juice:

The shocking price of Spanish electricity

A decade of poor regulation has sent bills soaring and left growing numbers of families unable to pay

Last year, some 1.4 million homes had their electricity cut off for non-payment. Two weeks ago, the government blocked an initiative to prevent utility companies from leaving families without electricity in winter.

Spain’s electricity bills are among the highest in Europe, having risen 60 percent between 2006 and 2012, with only the Irish and Cypriots paying more. Following two price rises in August and October, electricity companies announced just before Christmas that prices would go up a further 11 percent in January; in the face of the outcry that followed, the government intervened, preventing the increase.

On to Lisbon with a declaration from the Portugal News:

President declares recession’s end

President Cavaco Silva has declared the end of the recession and decided not to send the budget for 2014 to the Constitutional Court.
President declares recession’s end

In a televised New Year’s Day address to the nation, the President once again called on political parties to put aside their differences in order to safely negotiate Portugal’s release from the bailout programme scheduled for this summer.

But opposition parties showed no signs of adhering to the presidential call, saying immediately afterwards that Cavaco Silva was merely following reinforcing government rhetoric, saying they were preparing to submit the 2014 budget to a series of independent audits.

And some inflationary alarm from the Portugal News:

New Year, more price hikes for cash-strapped Portugal

2014 will stretch most family funds to their limits as the cost of electricity and water, public transport, rent, watching TV, making phone-calls, health care, smoking and drinking, among others, is to rise.

As of this month (January 2014) the price of electricity will go up by 2.8 percent and will be reviewed every three months. This hike means the average €46.50 household bill will increase by more than €1.21, and will apply to some four million consumers on the regulated market, paying so-called transitory fees.

Electricity hikes will, however, cease for good in 2016 when the free market will be open to all consumers. Quarterly revisions mean the prices could fluctuate throughout the year.

Water bills will also rise following a thorough restructuring of the sector. New governing statuses and the reorganisation of national water group Águas de Portugal are being highlighted as the main reasons for the changes.

Changes to water bills depend on the benchmark tariffs being charged by water supply and sanitation companies but should that price be of between two of three euros per cubic metre then up to eight million people could be affected.

Off to Italy with permissiveness from Reuters:

Italy can breach EU deficit limits if it reforms, Renzi says

Italy can negotiate a relaxation of European Union deficit limits if it shows it is serious about effective reforms to its economy and political system, Matteo Renzi, the new head of the center-left Democratic Party said in an interview on Thursday.

Renzi is not in the government but as head of the biggest party in Prime Minister Enrico Letta’s left-right coalition, he will have a decisive role to play in shaping the political agenda and has already called for quicker action on reforms.

TheLocal.it appeals:

Silvio Berlusconi appeals Ruby sex trial verdict

Italy’s Silvio Berlusconi on Thursday lodged an appeal against a conviction for paying for sex with a then-underage prostitute nicknamed “Ruby the Heart Stealer”, his lawyers said.

The media magnate’s defence team had previously announced their intention to appeal the July verdict, which saw the former premier sentenced to seven years in jail and banned from holding public office.

The punishment was suspended pending the appeal process, which is likely to take years.

ANSAmed soars:

Fiat flies on Chrysler takeover

Deal expected to be finalized January 20. Italy hopes for investments on home turf

Fiat stocks soared as much as 16% before the close of trading Thursday, a day after the Italian automaker announced it had gained full control of American carmaker Chrysler in a $4.35-billion deal, raising questions at home about the future of production for Italy’s biggest private corporation. T

After the jump, Greek woes continue, Turkish wages, Russian barriers, Latiin trade worries, Tahi troubles, Cambodian violence, Chinese anxieties, Japenese woes, and Fukushimapocalypse Now!. . . Continue reading

Quote of the day: The uranium boom of 2014


From a research report by leading investment bankster Cantor Fitzgerald,
reported by the Toronto Globe & Mail emphasis added]:

We have long pointed to 2014 as the kick off year for uranium prices to return and for the commodity to retake its position in the spotlight. While uranium equities have shown some strength over the last quarter of 2013, we believe there is significant upside remaining as the spot price is below the current marginal cost of production and significantly below the minimum incentive price for future supply to match future uranium demand.

While uranium prices are currently low due to excess uranium inventories stemming from material earmarked for Japan’s 50 reactors not being consumed over the last three years, we believe prices are set for a violent move higher as Japan is set to restart some reactors this year (we forecast 12 to restart in 2014). Moreover, despite the negative headlines of anti-uranium sentiment we continue to highlight that there are more reactors under construction, planned, and proposed now (556) than since before Fukushima (541).

Headlines of the day II: EconoEthnoFukufury


Lots to cover, including the latest bizarre twists at Fukushima after the jump/

Our first story, in which the third point precisely refutes the claim made just before, comes from the Department of Ironic Self Refutation via the London Daily Mail:

Home Depot founder hits out at Pope Francis claiming the pontiff ‘fails to understand rich Americans’

  • Billionaire Home Depot founder Kenneth Langone has announced he is uncomfortable with Pope Francis’ recent comments on wealth
  • In an interview with CNBC – Langone explained that he does not think the pontiff appreciates or understands Americans
  • Announced that a potential anonymous donor might not contribute a seven-figure sum to the restoration of Manhattan’s St. Patrick’s Cathedral because of this

The Washington Post covers betrayal:

Younger military veterans are angered by budget cuts to their pension benefits

The plan to trim pension increases for working-age military retirees such as Preston is by far the most controversial provision in a bipartisan budget deal approved by Congress and signed last week by President Obama.

The cut is small — a one-percentage-point reduction in the annual cost-of-living increase — but it has provoked outrage among veterans, some of whom argue that the country is reneging on a solemn pact. And even though lawmakers, especially in the GOP, fulminate about the need to cut the cost of federal health and retirement benefits, many have vowed to roll the cut back when Congress returns to work next week.

The San Francisco Chronicle covers a border booster:

Mexican sales tax hike seen as boon on US border

Mexican license plates are common in parking lots of shopping malls in U.S. border cities. They will be even more familiar after Mexico raises its federal sales tax in border regions to match the rest of the country, say merchants and shoppers.

The increase to 16 percent from 11 percent, which takes effect Wednesday, has sparked large protests on the Mexican side of the border. Facebook pages with secessionist tones have generated about 200,000 “likes.” Thousands have signed petitions to challenge the tax hike in court.

The Mexican government says the two-tiered tax structure, which was introduced decades ago to make border cities competitive, is no longer justified. Others say the increase may backfire by driving more shoppers north of the border, harming the economy and raising less tax revenue than anticipated.

Another piece of American industry goes, via Bloomberg:

Fiat Agrees to Buy Rest of Chrysler in $4.35 Billion Deal

Fiat SpA (F) agreed to buy the remaining stake in Chrysler Group LLC owned by a United Auto Workers retiree health-care trust in a $4.35 billion deal, the last step needed before the Italian and U.S. carmakers can merge.

Sergio Marchionne, chief executive officer of both carmakers, structured the deal so that Chrysler puts up most of the cash, easing strains on the Italian parent as it seeks to end losses in Europe. The agreement with the trust, structured as a voluntary employee beneficiary association or VEBA, gives Fiat full ownership of the No. 3 U.S. automaker less than five years after its government-financed bankruptcy.

Frackers ahoy, via Jiji Press:

Sumitomo Eyeing Shale Gas Biz in N. America

Major Japanese trader Sumitomo Corp. is considering embarking on shale gas- and share oil-related business in North America, President Kuniharu Nakamura has said in a recent interview.

Sumitomo is examining such possibilities as liquefying shale gas for exports to Japan and leasing machinery used in shale gas production, he said.

Media sellout in the works, via Reuters:

Chinese recycling tycoon says he wants to buy New York Times

An eccentric Chinese recycling magnate said on Tuesday he was preparing to open negotiations to buy the New York Times Co.

Chen Guangbiao, a well-known philanthropist, is something of a celebrity in China. During a particularly murky bout of pollution in January, the ebullient and tireless self-promoter handed out free cans of “fresh air.

But Chen says he is perfectly serious in his bid to buy the Times, something that he said he had been contemplating for more than two years. He said he expected to discuss the matter on January 5, when he is due to meet a “leading shareholder” in New York.

“There’s nothing that can’t be bought for the right price,” Chen said.

Austerity’s the fault, via the Los Angeles Times:

California’s funds for mapping earthquake faults running out

Fault line maps are crucial to enforcing building regulations and understanding risks of new development, seismic experts say.

California is about to run out of money for mapping earthquake faults, leaving many communities across the state with limited information about the seismic risks of new development.

The California Geological Survey has about 300 more fault maps left to complete, including some covering highly populated areas like the Westside of Los Angeles, the San Diego Bay area, and the San Gabriel Valley. But officials say the budget for mapping will run out once the state completes work on the Hollywood fault early next year.

A new way to get Boomers out of hospitals fast? From Disinformation:

Targeted Advertisements Will Be Appearing In Hospital Rooms

Healthcare costs in the United States are spinning out of control, but never fear, there are new sources of revenue in the pipeline.

And the ever-present austerian symptom, via Bloomberg:

Americans on Wrong Side of Pay Gap Run Out of Means to Cope

Rising income inequality is starting to hit home for many American households as they run short of places to reach for a few extra bucks.

As the gap between the rich and poor widened over the last three decades, families at the bottom found ways to deal with the squeeze on earnings. Housewives joined the workforce. Husbands took second jobs and labored longer hours. Homeowners tapped into the rising value of their properties to borrow money to spend.

Those strategies finally may have run their course as women’s participation in the labor force has peaked and the bursting of the house-price bubble has left many Americans underwater on their mortgages.

CBS DC has another one:

Retirement Unlikely For Many Blue-Collar Americans

The share of U.S. workers who are 55 and older is expected to continue growing, according to the “The Oxford Handbook of Retirement 2013.” The group comprised 12.4 percent of the workforce in 1998. The share jumped to 18.1 percent in 2008 and is expected to be almost 25 percent by 2018.

The book is edited by Mo Wang, co-director of the Human Resource Research Center at the University of Florida’s Warrington College of Business Administration. In an interview, Wang said it’s a misconception that lower-wage workers are slackers in preparing for retirement.

“People don’t have adequate earnings,” Wang told The Associated Press. “It’s not because they don’t want to save. It’s because they just can’t.”

As does Sky News:

Young People Sell Future Earnings To Investors

Start-up firms are offering an alternative to traditional debt by letting people sell a portion of their future earnings for cash.

A new industry is offering people the chance to “sell” a portion of themselves to investors in return for a cut of their future earnings.

Start-up companies such as Pave match carefully vetted, mainly young individuals, known as “prospects” with those willing to offer a one-time cash infusion.

On average prospects seek to raise around $20,000 (£12,100), although so far amounts have ranged between $3,000 (£1,800) and $50,000 (£30,300).

Ars Technica delivers the chop:

HP to cut 5,000 more jobs in 2014, bringing total layoff count to 34,000

Hewlett-Packard swung back into the black in 2013, maybe poised for “expansion.”

Bubble-formation slowing? From MarketWatch:

Case-Shiller: Home prices up, but boom fading

U.S. home prices remained on a solid upward trend in October, according to a report released Tuesday, but price gains may not be as strong in 2014.

The home-price index covering 10 major U.S. cities increased 13.6% in the year ended in October, according to the S&P/Case-Shiller home-price report. The 20-city price index also increased 13.6%, close to the 13.7% advance expected by economists.

Both increases are the best since February 2006, the report said.

And from the London Daily Mail, the day’s biggest news for a few million Americans:

Marijuana opponents predict Denver to go ‘hogwild’ today while ‘potrepreneurs’ bet cannabis tourism in Colorado will be like ‘Napa Valley wine tours’

  • Thousands celebrate Colorado becoming the first state in America to legally sell marijuana for recreational use
  • Sean Azzariti, 32, a former Marine and veteran of two tours of Iraq will become the first legal customer in the nation’s history
  • So far, 136 stores have been granted licenses to sell recreational cannabis
  • In addition, 78 marijuana cultivation facilities have been licensed by the state
  • But smoking marijuana in public remains illegal
  • Groups including Colorado Highlife Tours are betting on the weed tour market going off ‘like a Napa Valley wine tour’

And as a public service, we here at esnl feel obligated to warn readers bout the horrors of the devil’s weed. So spark one up, sit back, and enjoy. . .Reefer Madness [1936], a cautionary tale about the dangers of Marihuana and Jazz from the bowels of Old Hollywood [albeit [shudder] colorized [but do note the smoke]:

We head north of the border with a dour Toronto Globe and Mail:

Canada is headed in the wrong direction, majority says in poll

Support for Prime Minister Stephen Harper’s government is dropping sharply, according to a new poll showing a majority of Canadians believe the country is headed in the wrong direction.

The Nanos Research poll also shows 56 per cent of people rate the government’s 2013 performance as “somewhat poor” or “very poor,” a far higher share than the poll had found in earlier years. In particular, 44 per cent of respondents in the Prairies said the government’s 2013 performance was “very poor,” signalling unrest in the Harper Conservatives’ backyard.

The Globe and Mail again, with brighter news:

Canadian dollar new favourite among the world’s central banks

The world’s central banks are stashing away Canadian dollars at a faster rate than any other major currency, a vote of confidence at a time when the loonie has lost some of its shine in foreign-exchange markets.

Official holdings of Canadian dollars surged 23.6 per cent to $112.5-billion (U.S.) in the third quarter of this year from their level in the fourth quarter of 2012, according to International Monetary Fund data published Monday.

Off to Europe with discontent from The Independent:

A Greek archipelago for €8.5m, a Maltese passport for €1m and Polish castles going for a song… welcome to the great European fire sale

For some, austerity Europe is a land of opportunity – castles, islands, citizenship are all up for grabs. But not all the locals are happy

For a non-EU citizen with dreams of the good life and a few million in the bank, 2014 could be a good year. First, snap up Maltese citizenship, and thus a European Union passport, for €1.15m (£960,000). Then splurge on a former cardinal’s villa in Italy as the principle residence. For a fairytale winter getaway, Polish castles are going for a song. And what could be better for a summer bolt-hole than a Greek archipelago, a snip at €8.5m?

Europe’s fire sale, which began as the economic crisis forced governments to find innovative ways to plug holes in their dwindling budgets, has reached new heights as ever-more intriguing state assets are touted for sale.

But a backlash is brewing, with governments and enraged citizens clashing over exactly who has the right to flog a nation’s history and culture.

EUbusiness drops the barriers:

European labour market opens for Romanians, Bulgarians

Romanians and Bulgarians will have the right to work in any of the European Union’s 28 countries from Wednesday, sparking fears of mass invasion and benefits tourism in Britain and Germany.

Britain rushed through a series of measures to ban EU migrants from claiming unemployment handouts from the moment they arrive, while German lawmakers raised concerns about social benefits fraud.

But Bucharest and Sofia slapped down the fears, saying their countrymen are not planning an exodus en masse.

The British take from the London Telegraph:

Non-EU citizens will be able to work in Britain after Bulgarian restrictions lifted

Hundreds of thousands of people from poor countries outside the European Union will be free to find jobs in Britain as a result of restrictions on Romanians and Bulgarians being lifted

Romania and Bulgaria, whose citizens will now have the right to work freely in the UK, are offering passports to people in non-EU countries including Moldova and Macedonia.

Historic ties also mean that some Serbs, Ukrainians and Turks are eligible to claim passports that would allow them to work anywhere in the EU.

The Guardian ponders Tory intolerance:

Alarm sounded on anti-Roma rhetoric as door opens to more EU workers

Cross-party group calls for calm dialogue after Tory council leader blames Roma in London for disruption and crime

Politicians are inflaming community tensions with anti-Roma rhetoric, an alliance of Tory, Labour and Liberal Democrat MPs has warned as Britain opens its borders to Bulgarian and Romanian workers.

MPs on the all-parliamentary party group on Gypsies, Travellers and Roma sounded the alarm about provocative language as a prominent Tory council leader suggested some Roma are planning to come to the UK to “pickpocket and aggressively beg” following the end of labour market controls on the two eastern European countries.

Meanwhile, the real thieves and pickpockets are faring quite well. From The Guardian:

£2m: average pay award for JP Morgan’s top staff in 2012 revealed

  • Banks disclose figures in dying hours of 2013 to comply with new European rule demanding information on bankers’ pay

Fresh evidence of the pay deals on offer in the City has emerged, with the biggest US bank, JPMorgan Chase & Co, revealing it gave more than 100 of its top staff in London an average of £2m each in 2012.

The disclosure comes after Goldman Sachs said its high flyers received £2.7m on average – up 50% on the year before – adding to anger about bankers’ bonuses.

The Guardian overcharges:

Energy firms paid £4bn more for power than market rate, claims Labour

  • Big six firms deny inflating prices to make extra profits from their own plants or striking expensive deals to detriment of consumers

Households may have paid £150 over the odds for their electricity over the past three years because energy companies bought their power for almost £4bn more than the average market rate, Labour has claimed.

In a new analysis of official figures, the Labour party, which has pledged to freeze prices for 20 months if it wins the general election in 2015, said the big six energy suppliers appear either to be inflating their prices to make extra profits for their own power plants, or striking very expensive deals to the detriment of consumers.

Norway next, where TheLocal.no covers growing numbers:

2014 will be record refugee year – Norwegian charity

A Norwegian charity has predicted that the number of refugees in the world will continue to rise in 2014, after a record year in 2013. Norway needs to be ready to help, the charity’s boss says.

“The international community must be ready to strengthen its efforts,” said Jan Egeland, secretary general of the Norwegian Refugees Council.

The war in Syria is currently the biggest source of refugees, although conflicts in Africa are also a significant factor. South Sudan could be heading for a catastrophic civil war and the Central African Republic continues to be one of the world’s most under-reported war zones, according to the charity.

A necon demand, via TheLocal.no:

Jensen: Norway’s firms pay too much tax

Norwegian companies pay too much in tax, Finance Minister Siv Jensen has said, particularly in comparison to neighbouring countries. She now plans to appoint an expert committee to look at how corporation tax can be cut.

“A major challenge from the Norwegian perspective is that the difference between us and most other countries is getting very big. There’s no doubt that there’s a gap to close – particularly when you look at  proposals for further tax reductions in the countries around us. We have a situation where high corporation tax is distorting competition, to the detriment of Norwegian companies,” she said.

Germany next, and a conservative demand from Europe Online:

Personal responsibility plea central to Merkel’s New Year’s message

Personal responsibility and initiative are two of the qualities Germans will need to move both their country and Europe forward in 2014, Chancellor Angela Merkel argued in her New Year’s message, released Tuesday.

“The state can invest. It can create good conditions,” she said in her annual message.

“But politics can only accomplish a little without all of you in our country. What every one of us accomplishes individually on a small scale – that affects our country in large.”

Off to Paris and a promise from FRANCE 24:

Hollande vows to create jobs in New Year’s address

French President François Hollande reiterated his pledge to reduce unemployment in a televised message on Tuesday evening, the president’s annual New Year’s message to the French people from the Elysée Palace.

Hollande proposed establishing a “responsibility pact” for corporations that would lower their labour charges in return for boosting recruitment as part of a raft of measures to reduce unemployment, which he had vowed to reduce by the end of 2013.

France’s unemployment numbers rose 0.5% in November to almost 3.3 million, with the jobless rate continuing to hover stubbornly at 10.5% within metropolitan France.

TheLocal.fr covers a lighter-shade-of-blue law:

France says DIY stores can open on Sundays

Home improvement stores will be allowed to open on Sundays it has been announced after a fierce debate over the country’s strict laws on trading on the traditional day of rest.

Retailers can only open on a Sunday under certain conditions — if they are located in a tourist or a high-density area, for example. Any shop selling food can operate until 1:00 pm.

But the rules have infuriated workers who want to work Sundays at a time of sky high unemployment, and drawn criticism that they are archaic and ill-suited to a time of economic hardship.

Spain next, with an upbeat pronouncement from El País:

Economy minister forecasts “significant” job creation for 2014

  • De Guindos says government labor reforms will help drive recovery

Following on from Prime Minister Mariano Rajoy’s year-end speech, in which he said 2014 would be the year of economic recovery, Economy Minister Luis de Guindos predicted in an interview broadcast on Wednesday that the creation of jobs this year would be “significant.”

“In 2014, the projections we have at the Economy Ministry point to a net creation of jobs, even above what we forecast when we drew up the state budget,” De Guindos said in an interview recorded a few days previously with radio station Cadena Ser.

TheLocal.es delivers a blast:

‘Spain’s abortion law is pure ideology’: Le Monde

France’s prestigious Le Monde newspaper dedicated their Monday editorial to Spain’s new abortion law, calling it both ‘regressive’ and a politically motivated attack on ‘the left’s moral high ground’.

Le Monde ran the piece under the title “Abortion: Spain’s step backwards”.

The left-leaning daily begins by describing how its European neighbour was once at the forefront of “progressive” laws that protected women’s rights, from abortion to gender violence.

El País offers a counterblast:

Bothersome intellectuals and media” threaten families, says cardinal

Cardinal Antonio María Rouco said Sunday that Spain’s traditional Christian families were being threatened by “a culture of sadness,” including a “bothersome environment generated by intellectuals and the media.”

Speaking in his homily during an outdoor Mass held in Colón square in Madrid, which was dedicated to the day of the Holy Family, Rouco told thousands of church-goers that for “the chronically and terminally ill, the unemployed,” and “youths who have succumbed to alcohol, drugs and wild sex,” “there was no other place” like the family unit to seek refuge and help.

El País again, with intra-party blowback in the reigning neoliberal party:

Extremadura premier joins chorus of PP voices speaking out against abortion law

  • “No one can deny anyone the right to be a mother, nor can anyone force someone to become one,” says Monago

Another top Popular Party (PP) official publicly came out against his government’s proposed abortion law on Monday. Extremadura premier José Antonio Monago said he plans to present his argument against the reform on January 8 during the party’s next executive committee meeting.

“No one can deny anyone the right to be a mother, nor can anyone force someone to become one,” Monago said during his New Year’s message.

TheLocal.es drops the curtain:

EU calls time on Spain’s bank bailout

The eurozone aid programme for struggling Spanish banks closed as scheduled on Tuesday after providing some €41 billion ($55 billion) to get them through the debt crisis, a statement said.

The support “has proven instrumental in recapitalizing and restructuring Spain’s troubled banks, which are today on a sound footing,” said Klaus Regling, head of the European Stability Mechanism, the fund set up to help eurozone countries at the height of the crisis.

More hard times for another member of the ruling party via thinkSPAIN:

Bárcenas admitted to hospital

FORMER treasurer of the PP Luis Bárcenas was admitted to hospital yesterday due to an allergic reaction, according to prison governors at the Soto del Real jail in Madrid.

Bárcenas, investigated for tax evasion and over the alleged cash-in-hand dealing and bribery thought to have taken place within the PP party for over 20 years, has been behind bars since June 27 – despite having consistently cooperated with judge Pablo Ruz and his investigations.

Portugal next, with an offer of help via EUobserver:

EU prepares to offer Portugal more aid

European Commissioner for economic affairs Olli Rehn wrote in a Monday editorial in the business daily Diario Economico that the EU would offer additional help to Portugal once its bailout ends in May, reports the AFP. Portugal received €78bn in 2011 from international creditors in exchange for deep reforms.

Italy next, and a worrisome report from TheLocal.it:

Syrian behind shock migrant film disappears

The Syrian man who filmed fellow immigrants being subjected to naked disinfection showers in Italy has disappeared, national media reported on Tuesday.

The Syrian, who arrived by boat in early October, has not been seen at the Lampedusa immigration centre since Sunday morning, Corriere della Sera said.

His footage led to the centre’s management staff being sacked, a national investigation launched and the EU to warn Italy of the way it treats migrants.

And AGI enthuses:

Italian Labour Minister sees an economic trend reversal

“There are signs of a possible trend reversal”, said Italian Labour Minister Enrico Giovannini on the Radio Anch’io show. GDP stopped falling in the third quarter of this year and the “first signs of recovery” are forecast for the fourth quarter.

In the same period, “new labour contracts outnumbered the contracts terminated”, the minister said defining it “an important fact that shows that the labour market is gaining momentum”.

Still referring to the labour market, Giovannini recalled that a Youth Guarantee Implementation Plan has been submitted in Brussels: “We are now waiting for the green light to allocate 1.5 billion euros.”

Eastern Europe next, with BBC News:

Latvia becomes 18th state to join the eurozone

Latvia has begun the new year by joining the eurozone, becoming the 18th member of the group of EU states which uses the euro as its currency.

After the jump, the lastest from Greece, Turkish troubles, Iranian oil, Putin warns, Aussie anxiety, Vietnam opens up, China debts and doubts, Japanese worries, and the latest Fukushimapocalypse Now!. . . Continue reading

Headlines of the day II: EconoGrecoFukuPlus


Straight to it, albeit belatedly and with little embe.llishment, we begin in the Big Apple with the Wall Street Journal:

Shelters Fill as Rent Aid Disappears

New York City residents who received rent subsidies are flocking to homeless shelters.

New York City homeless shelters—swelling with record-high populations not seen since the Great Depression—are increasingly being sought out by people who participated in a now-defunct rent-subsidy program designed to reduce homelessness, according to a report to be released Saturday.

The author of the report, the Coalition for the Homeless, a nonprofit advocacy group, held up the report as evidence that homeless families need longer-term government help with rent to stay out of the shelter system. Since the rental-payment program, known as Advantage, was canceled by Mayor Michael Bloomberg’s administration after state budget cuts in June 2011, the city’s homeless shelter system population has grown to its highest-ever levels: 52,000 people, including 22,000 children.

As of August, the coalition report found, 49.4% of family placements in the Advantage program had returned to the shelter system, climbing from 24.5% nearly three years ago. The numbers rose rapidly as subsidies ran out in 2012, with more than 300 families a month seeking shelter from the city during that summer after losing their rent subsidies. In 2013, more than 200 such families were entering shelters each month, the report said.

MarketWatch uncovers another austerian dimension:

America’s hidden retirement crisis is racial

A troubling new study, Race and Retirement Insecurity in the U.S., reveals that America’s retirement crisis is particularly dire for blacks and Latinos.

“If nothing changes, the future for people of color is frightening,” author Nari Rhee, research manager for the nonprofit National Institute on Retirement Security, told me.

Rhee’s report comes on the heels of other recent surveys from financial services firms and consultants with their own scary stats documenting the general lack of retirement savings among blacks and Latinos.

Reuters closes a chapter:

Fannie Mae settles with Wells Fargo as mortgage review ends

Wells Fargo & Co will pay a net $541 million to Fannie Mae to settle claims over defective home loans, completing the government-controlled mortgage company’s efforts to have banks buy back troubled loans made before the financial crisis.

Fannie Mae said on Monday it has reached settlements worth roughly $6.5 billion over loan buybacks with eight banks, including Wells Fargo, the nation’s largest mortgage lender and fourth-largest bank by assets.

About damn time, with USA TODAY:

13 states raising pay for minimum-wage workers

State minimum wages will exceed the federal minimum of $7.25 an hour in 21 states on Jan. 1.

The trend reflects growing concerns about the disproportionate spread of low-wage jobs in the U.S. economy, creating millions of financially strained workers and putting too little money in consumers’ pockets to spur faster economic growth.

The Progressive covers the despicable:

Norquist Tells ALEC He Wants U.S. to Revive Decapitation

During a speech about criminal justice reform earlier this month at the annual American Legislative Exchange Council (ALEC) conference, anti-government crusader Grover Norquist compared criminals to fish caught in a net and exclaimed that he would like to see America revive the practice of beheading convicted killers.

“We gotta fight crime, we gotta have less crime, we have to be more secure in our persons and our property,” he said. “I’m all in favor of chopping the heads off of people who commit murder and putting people in prison for a long, long time. There’s no bleeding heart whatsoever. This is about punishing real criminals and making sure we don’t just toss everybody in the net, the porpoises and the tuna, and treating them all the same.”

And CBC heard the giant sucking sound:

NAFTA turns 20: Mexico is pact’s biggest winner

North American Free Trade Agreement between Canada. U.S. and Mexico signed in 1994

Ross Perot may have had it right after all about who would win under NAFTA.

The North American Free Trade Agreement was an important step for all three members, but the evidence points to Mexico — at the time the weak sister in the group that included two G7 economies, the United States and Canada — as by far the biggest winner.

News Corp Australia takes us global:

World braces for retirement crisis

A GLOBAL retirement crisis is bearing down on workers of all ages.

Spawned years before the Great Recession and the 2008 financial meltdown, the crisis was significantly worsened by those twin traumas. It will play out for decades, and its consequences will be far-reaching.

Many people will be forced to work well past the traditional retirement age of 65. Living standards will fall and poverty rates will rise for the elderly in wealthy countries that built safety nets for seniors after World War II. In developing countries, people’s rising expectations will be frustrated if governments can’t afford retirement systems to replace the tradition of children caring for aging parents.

Off across the pond with Europe Online:

Sceptics, right-wingers set to challenge EU in 2014 poll

Four years into its fight against a debilitating economic crisis, the European Union will in 2014 face a new litmus test: the ballot box.

In May, citizens from the bloc’s 28 member states will vote for a new European Parliament. And the indications are that eurosceptic and far-right parties will score big gains, amid public frustration over the painful measures that have been implemented to tackle the crisis.

“For many, making ends meet isn’t as easy as it used to be, and could well become even harder for their children,” EU President Herman Van Rompuy noted during a recent speech in Berlin. “Today, Europe is seen as being intrusive, meddling, dictating, correcting, prescribing, imposing, even punishing,” he added.

The eurobankster speaks, via Xinhua:

Draghi plays down anticipation of immediate rate cut

European Central Bank (ECB) president Mario Draghi has tried to play down the anticipation of an immediate rate cut in an interview published on Saturday.

Draghi told German magazine Der Spiegel that he saw no need of an immediate rate cut, citing “many encouraging signs” including the economic recovery in some euro area countries, decreasing budget deficits and other improvements.

His claim came as expectations for more monetary easing by the ECB are running high. The ECB has clarified in its forward guidance that the current low interest rates would remain for a long period of time or become even lower.

On to Britain with the South China Morning Post and a familiar name on the UC Berkeley campus:

Li Ka-shing’s British power firm UKPN under fire over alleged tax avoidance

UK Power Networks allegedly reduced tax bill with payments to firms in the Cayman Islands

UK Power Networks, owned by Li Ka-shing, is alleged to have avoided £38 million (HK$485 million) in British taxes over last three years. Photo: Sam Tsang

A British energy firm owned by tycoon Li Ka-shing has come under fire amid allegations the company, at the centre of a storm over Christmas power blackouts, avoided paying millions of pounds in taxes.

Fretting with Sky News:

Millions Stress About Finances ‘Every Day’

Money worries are an even greater concern for Britons than health or job security, new research reveals.

In the UK, 18.1 million people feel stressed about their finances every day, according to new research seen by Sky News.

The Independent bills:

Migrants will have to pay at A&E – and all patients will have to prove they are not foreigners to get free NHS treatment

As part of proposals to recoup up to £500m from visitors from outside the European Union who use the NHS, hospitals will be required to identify those patients who are not eligible for free care – and make foreigners pay for life-saving treatment they receive on accident and emergency wards.

But the reforms mean that eligible patients will also have to prove they have the right to be treated free of charge.

Sweden next, where TheLocal.se beggars the conscience:

Swedish professor: Ban begging handouts

A leading Swedish professor has said that it should be illegal for people to give money to beggars but his idea has been described as a “joke” by campaigners.

Bo Rothstein, a political science professor long associated with the University of Gothenburg, made the argument for a begging donation ban in an opinion editorial in Dagens Nyheter.

“Anybody who begs in front of us on the street doesn’t offer anything apart from their social vulnerability and the person that gives is exploiting their situation to get satisfaction and ease their social conscience,” wrote Rothstein in the newspaper.

TheLocal.no takes us to Norwegian opposition:

Most Norwegians oppose new private schools

Norway’s government has said it would like to make it easier to open fee-paying private schools, but most Norwegians are against the idea, according to a new poll.

53 percent of those asked by pollsters Sentio Research said they were opposed to allowing more private schools to open. Some 36 percent were in favour, with 11 percent saying they didn’t know. The poll was carried out for radical left-wing newspaper Klassekampen.

Norway’s governing parties, Høyre and Fremskrittspartiet, have said they want to change the law regulating private schools by the end of 2015. The law currently requires that private schools have a special religious or educational philosophy to qualify for co-financing from the state. The government wants to remove this requirement and allow all private schools that pass quality tests to qualify.

Holland next where DutchNews.nl brings us Beancounters Behaving Badly:

Accountants KPMG fined for role in Ballast Nedam bribery case

Accountancy group KPMG has reached a €7m out of court settlement with the public prosecution department over its role in a construction sector bribery scandal.

The investigation into three former KPMG accountants is continuing, the public prosecution department said in a statement.

KPMG was accused of disguising bribes paid on behalf of building group Ballast Nedam to win orders. The company also failed to pay proper attention to ensuring integrity demands were met, the public prosecutor said.

On to Germany with the London Telegraph:

Draghi complains of ‘perverse angst’ among Germans

ECB head says German worries over eurozone are misplaced

Mario Draghi has spoken out against the “perverse angst” displayed by Germans over the European Central Bank’s policies.

The Frankfurt-based central bank cut rates to a new record low of 0.25pc in November, despite resistance from German policymakers, who are fearful that low interest rates could fuel housing bubbles in its major cities. In April, German Chancellor Angela Merkel said the country’s economy, which has consistently outperformed its eurozone peers since the financial crisis, was ready for a rate rise even though the rest of the single currency bloc needed looser monetary policy.

Reuters looks for a final solution:

Merkel says permanently fixing euro zone crisis vital for Germany

Chancellor Angela Merkel will tell Germans their fate is so closely entwined with the European Union that it is imperative to come up with answers on how to permanently resolve the euro zone’s sovereign debt crisis.

In an advance text of the traditional New Year’s Eve address that she will deliver on Tuesday evening, Merkel said Germany had a lot of work to do to maintain its own economic strength.

EUobserver constrains:

Merkel allies keen to curb EU powers

German Chancellor Angela Merkel’s Bavarian sister party, the Christian-Social Union (CSU), plans to call for fewer EU commissioners and less new EU legislation in next year’s European Parliament elections.

“We need a withdrawal treatment for commissioners intoxicated by regulation,” the party’s four-page election strategy paper – seen by Der Spiegel and due to be adopted in January at a CSU congress – says.

TheLocal.de has conflicts:

MPs spar over eastern EU immigration fears

Hours before immigration restrictions on people from Romania and Bulgaria coming to Germany are lifted, politicians are arguing over attempts to discourage those with poor work prospects from coming to the country.

As of January 1st, Bulgarians and Romanians will be free to seek work throughout the European Union, which their countries joined back in 2007. This has prompted fears of a flood or an influx of people seeking welfare payments in richer countries.

Chancellor Angela Merkel’s Bavarian allies have reacted by drawing up proposals to toughen social welfare laws, prompting criticism from Social Democrat politicians – now their coalition partners in the national government.

France next and taxing time with Al Jazeera America:

France’s top court approves 75 percent ‘millionaire tax’ on employers

Companies will be taxed for employees who make more than 1 million euros a year

France’s Constitutional Council – the country’s highest court – gave the green light on Sunday to a controversial “millionaire’s tax,” to be levied on companies that pay salaries of more than 1 million euros ($1.38 million) a year.

The measure, introduced in line with a pledge by President Francois Hollande to make the rich do more to pull France out of crisis, has infuriated business leaders and soccer clubs, which at one point threatened to go on strike.

On to Spain with separation anxieties from El País:

Premier Mas admits EU will expel an independent Catalonia

Government would look for other alternatives “outside the treaties,” says regional leader

For the first time since heated debate broke out over Catalonia’s proposed independence referendum next year, regional premier Artur Mas, who is pushing for the status vote, has admitted that his northeast region would be ejected from the European Union if it seceded from Spain.

Stop the presses with TheLocal.es:

Struggling Spanish paper closes print edition

Spanish national newspaper La Gaceta has scrapped its print edition, a spokeswoman said on Monday, as it fights to survive a financing crisis in the recession-damaged country’s media.

“The paper edition has been closed” since Friday, said a spokeswoman for the strongly conservative newspaper, which was founded in 1989 and employs about 60 people.

“The newspaper will continue, but online — that is what we will focus on,” the spokeswoman told news agency AFP.

Occupy USA TODAY:

Spain squatters take over buildings after foreclosures

One in four Spaniards is out of work, which in a country that boasts one of the highest rates of home ownership in the world means many families fall behind on their mortgage payments and face foreclosure.

At the same time, the number of empty buildings across the country swelled after a building boom went bust.

The Spanish government estimates that there are more than 650,000 finished properties that sit empty across the country, alongside nearly half a million properties that were left idle while under construction.

El País covers a breakthrough:

ETA prisoners recognize damage caused by campaign, accept legitimacy of jails

Collective releases statement giving 527 inmates go-ahead to begin negotiating early release

The prisoner collective of terrorist group ETA, which represents more than 500 inmates from the Basque separatist organization, released a taped statement on Saturday recognizing the legality of Spain’s penitentiary system, expressing its agreement for individual prisoners to negotiate individual early release terms, and rejecting the violence and “suffering and multilateral damage caused” by their terror campaign.

Portugal next with EUbusiness:

EU ready to offer Portugal more help: Rehn

European Union is ready to offer Portugal further aid once its current bailout expires in May, Economics Affairs Commissioner Olli Rehn said on Monday.

“Europe will keep its word” and continue to help Portugal, but only on condition it “continues reforms already under way,” Rehn wrote in an editorial for business daily Diario Economico.

“The absolute priority is to successfully conclude the current programme,” Rehn wrote, while warning that it was “indispensable that Portugal maintain budgetary discipline and structural reforms in the upcoming years”.

And on to Italy with ANSAmed:

Italy: Poverty hits record high amid unemployment, recession

Absolute poverty double since 2005, triple in industrial north

The number of people in crisis-hit Italy living in absolute poverty has doubled between 2005 and 2012 and tripled in the industrial north, up to 6.4% from 2.5%, according to an annual report on social cohesion by national statistics bureau Istat released on Monday.

Overall, more than 1.7 million families live in a state of absolute poverty for a total of 4.8 million individuals amid rising unemployment and a stubborn recession, Istat said.

On to Eastern Euroipe, with in Solvenia with EUobserver:

Slovenia: Bank tests treated as military secret

Bank stress tests indicate that Slovenian lenders do not need a bailout, but private consultancies played a controversial role in the evaluation.

The test results, published last month and accompanied by positive statements from the Slovenian government, the Bank of Slovenia and the European Commission, say Slovenia can recapitalise its banking sector without international help.

South China Morning Post covers a tragedy:

Romania’s children being left behind as their parents seek work abroad

A generation is growing up with absentee parents, who are supporting their families by working in more prosperous western Europe

Tens of thousands of Romanian children are growing up parentless because their mothers and fathers work abroad, according to figures that raise questions about the extent and impact of large-scale migration on the eve of new EU rules governing Bulgarians and Romanians.

According to the Romanian ministry of labour, family and social protection, there are now more than 80,000 families in Romania in which both parents are working abroad while their children stay at home, with 35,000 more families in which one parent is overseas.

After the jump, the Greek crisis unfolds, Latin American inflation, changes in Cuba, Chinese neoliberalism, Japanese boosterism, environmental woes, and the latest stunning chapter of Fukushimapocalypse Now!. . . Continue reading