Category Archives: Intolerance

Breaking the Set: The madness of watchlisting


Abby Martin of RT’s Breaking the Set hosts a discussion on the new revelations about Uncle Sam’s terrorism watchlists and the absurdly arbitrarily rules [or lack of them] for designation ordinarily folks as potentially extraordinary criminals.

Particularly chilling is the case of a man told by the FBI that they knew he wasn’t a terrorist, but they wouldn’t get him off the list unless he turned snitch and informed on fellow members of his community.

Can you say “Joe McCarthy,” kiddies?

From Breaking the Set:

The Absurd Criteria Needed to Put You on a Terror Watchlist Will Shock You

Program notes:

Abby Martin speaks with Susan Hu, Fellow at the Center for Constitutional Rights and Kevin Gosztola, journalist at Firedoglake, discussing a recent article on the intercept that exposes the National Counterterrorism Center’s criteria for adding individuals to the government’s terrorism watchlist, highlighting the arbitrary nature of the guidelines and how over the last 5 years nearly 1.5 million people have been added to the list.

Headlines: Beaucoup elections, and lots more


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

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

Children from China enroll in US summer academic camps

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

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

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

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

Colleges Rattled as Obama Seeks Rating System

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

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

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

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

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

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

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

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

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

‘Risk of deflation’ – ECB president

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

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

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

And our first electoral story, via EUbusiness:

Europe’s leaders urge EU reform after eurosceptic poll wins

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

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

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

More from United Press International:

European Parliament election results illustrate growing dismay with economic austerity measures

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

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

And ominous new additions from EUbusiness:

European Parliament set to usher in first neo-Nazis

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

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

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

EurActiv looks on the bright side:

Europe on course for ‘grand coalition’ after election

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

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

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

A different take from EUobserver:

New EP will struggle to find majorities

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

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

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

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

Nigel Farage: ‘My Dream Has Become Reality’

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

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

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

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

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

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

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

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

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

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

From the Independent, a loser struggles:

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

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

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

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

Ditto from Sky News:

EU Must Reform For Jobs And Growth – Cameron

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

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

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

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

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

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

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

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

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

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

Sinn Fein Surges in Ireland as Voters Punish Austerity

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

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

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

One response from Independent.ie:

Eamon Gilmore resigns as leader of Labour Party

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

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

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

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

Mayoral Candidates Speak Out On Mosque Issue

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

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

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

Sweden next, and harumphing from TheLocal.se:

‘Nationalists threaten EU openness’: Malmström

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

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

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

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

Rosneft to buy stake in Norway drill company

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

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

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

On to Copenhagen and more right wing triumphs via EurActiv:

Danish far right party wins in EU elections, doubles mandate

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

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

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

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

Merkel’s party tops vote but loses ground

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

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

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

Another winner from EUbusiness:

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

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

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

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

And a predictable reaction from EUbusiness:

German Jews shocked at far right’s EU success

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

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

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

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

More of the same from TheLocal.de:

Steinmeier ‘horrified’ at far-right seat win

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

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

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

From Deutsche Welle, a reminder:

Audi comes clean about its Nazi past

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

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

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

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

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

Belgian PM hands in resignation after defeat in elections

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

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

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

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

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

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

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

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

Predictable panic from Europe Online:

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

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

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

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

And a pickle for a predecessor from TheLocal.fr:

Cops grill Sarkozy ally over €400m state payout

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

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

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

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

EU Election: ÖVP defends first place

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

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

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

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

Off to Poland with New Europe:

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

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

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

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

Hungary next, via EUobserver:

Hungarian PM breaks ranks on Juncker

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

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

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

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

Next, Romania, via EUbusiness:

Ruling Social Democrats win Romania EU vote: official results

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

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

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

Portugal next, with EurActiv:

Socialists win in Portugal, stay second in Spain

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

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

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

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

El País takes us to Spain:

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

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

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

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

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

El País again, with another resignation:

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

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

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

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

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

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

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

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

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

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

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

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

Italian stocks surge after Renzi’s EU victory

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

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

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

Cheering up also-rans with ANSA:

Grillo tells M5S supporters not to lose heart

  • Leader tells supporters M5S opposition will do more

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

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

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

ANSA again, with more also-rans:

Berlusconi says FI remains ‘linchpin’ despite poor result

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

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

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

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

And some more Bunga Bunga woes from TheLocal.it:

Ex-MP ‘pilfered public money’ in Iraq deal

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

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

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

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

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


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

First, takin’ to the streets with RT:

World protests Monsanto grip on food supply chain

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

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

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

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

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

Sheriff highlights mental-health shortcomings after California rampage

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

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

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

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

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

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

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

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

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

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

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

Past Republican donors rebuffing GOP candidates to back Jerry Brown

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

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

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

From the Guardian, the results those big bucks produce:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Britain next, with BBC News:

UKIP heading for clear victory in UK European elections

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

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

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

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

One outcome, via the Guardian:

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

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

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

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

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

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

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

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

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

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

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

Scandinavia next, first with Bloomberg:

Voters Punish Reinfeldt as Protest Groups Gain in Nordic EU Vote

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

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

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

On to Copenhagen with EUbusiness:

Anti-immigrant Danish party wins EU vote: exit poll

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

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

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

Germany next, first with TheLocal.de:

Eurosceptics and SPD celebrate EU vote gains

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

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

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

On to Belgium with the Associated Press:

Belgium faces tough coalition talks after vote

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

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

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

France next, first with Reuters:

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

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

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

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

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

More from Bloomberg:

French National Front Victory Needs EU Response, PM Valls Says

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

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

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

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

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

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

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

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

Then on to Vilnius with BBC News:

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

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

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

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

Budapest next with EUbusiness:

Hungary’s right-wing dominates EU polls

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

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

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

And on to Slovakia with EUobserver:

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

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

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

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

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

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

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

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

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

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

Spain’s major parties lose out in Euro elections

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

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

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

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

A critical regional result via EUbusiness:

Separatist party wins EU vote in Spain’s Catalonia

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

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

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

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

Renzi’s PD projected to land big win

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

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

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

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

Lebanon agrees to extradite Berlusconi ally

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

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

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

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

Headlines: Bubbles, bull, bile, pols, threatcetera


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

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

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

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

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

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

Poor Americans Direct 40% of Their Spending to Housing Expenses

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

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

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

While The Hill finds cause for rejoicing:

Bankers breathe sigh of relief as Tea Party power fizzles

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

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

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

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

Californians Overwhelmingly Support a Ban on Fracking

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

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

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

Governor’s teacher pension plan shocks school districts

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

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

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

From Bloomberg, a dire warning?:

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

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

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

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

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

Arizona residents evacuate as fierce wildfire rages

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

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

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

CNN again:

Wildfire scorches nearly 80,000 acres in Alaska

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

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

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

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

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

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

The results were eye-opening.

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

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

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

Barclays Bank fined £26m for gold price failings

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

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

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

The Independent sets a precedent:

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

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

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

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

And Sky News covers hard times populism resurgent:

Parties Reel From UKIP Election Success

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

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

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

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

One reaction from EUbusiness:

British deputy PM faces calls to quit

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

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

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

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

Greens, feminists surge ahead of EU vote ‘thriller’

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

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

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

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

From BBC News, more of that hard times intolerance:

Brussels fatal gun attack at Jewish museum

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

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

A fourth person was seriously wounded, emergency services said.

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

Germany next, and political idiocy rebuked from EUbusiness:

Schulz mocked for ‘German’ appeal in EU election ad

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

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

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

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

From Reuters, deals undone:

Germany stops numerous arms exports, risks compensation fees: report

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

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

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

And TheLocal.de protests:

Thousands protest at Erdogan German rally

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

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

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

On to Eastern Europe and epidemic apathy from New Europe:

Record abstention in Chech Republic reaches 80%, exit poll

  • Right wing TOP 09 leads with 18%

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

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

Spain next, and significant symbolism from the Guardian:

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

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

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

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

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

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

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


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

House bans Pentagon from preparing for climate change

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

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

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

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

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

Another reason, from CNBC:

25% of Americans saving $0 for retirement

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

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

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

Bloomberg News excludes:

No Recovery for Workers in the Middle

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

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

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

From Reuters, you gotta beef with that?:

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

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

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

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

China Daily hustles:

US hedge fund raises money from wealthy Chinese to invest abroad

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

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

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

China Daily again, with a visitor en route:

2.1m Chinese to visit US this year

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

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

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

A central bankster warning from Reuters:

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

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

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

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

Trust us, they say. Via EUbusiness:

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

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

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

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

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

From EUbusiness, sure, right:

Germany’s Schaeuble denies austerity sparked populist backlash

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

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

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

On to Britain and the right rising from BBC News:

Nigel Farage: UKIP to be serious players at general election

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

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

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

More from the Independent:

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

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

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

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

The Guardian recommends, righteously:

Jail fraudsters for longer, judges told

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

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

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

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

The London Telegraph scents a bubbly deflation:

London’s property boom is losing its fizz

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

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

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

From the Guardian, a fracking letdown:

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

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

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

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

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

More from the Independent:

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

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

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

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

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

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

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

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

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

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

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

On to Norway and a rejection from TheLocal.no:

Norway scuppers China tycoon’s Arctic plan

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

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

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

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

Ageing Germany lowers retirement age

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

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

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

From Deutsche Welle, diplomatic phrasing:

German business confidence takes a breather

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

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

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

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

Süddeutsche Zeitung gets behind the wheel:

What’s Driving Gulf Cash To European Holdings

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

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

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

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

French military top brass threaten to quit over cuts

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

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

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

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

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

Marine Le Pen and Golden Dawn ‘flirting’

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

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

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

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

Austrian millionaires richer than ever before

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

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

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

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

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

Property prices plunge in Geneva region: report

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

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

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

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

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

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

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

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

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

El País delivers the grim working class reality:

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

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

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

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

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

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

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

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

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

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

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

Grillo and Renzi Clash as Berlusconi Speaks in Rome

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

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

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

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

From TheLocal.it, political realism?:

Red light district wins Rome mayor’s support

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

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

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

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

And fueling around with TheLocal.it:

ENI clinches Gazprom deal to cut gas prices

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

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

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

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

Headlines: EcoWarnings, eCons, lies, more


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

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

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

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

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

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

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

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

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

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

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

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

Brown’s office had no comment Wednesday.

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

As Central Valley fog disappears, fruit, nut crops decline

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

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

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

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

East Bay sheriffs to release immigrants held for feds

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

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

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

From the Los Angeles Times, a legal revolt:

Counties sue narcotics makers, alleging ‘campaign of deception’

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

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

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

BBC News hauls out the chopper:

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

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

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

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

Hypocrisy between the buns, via the Guardian:

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

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

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

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

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

A thoroughly tamed electorate, via EUbusiness:

Muted US opposition to Atlantic trade treaty

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

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

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

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

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

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

Study: Organized Crime Launders Billions Through Bets

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

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

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

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

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

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

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

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

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

On to Europe, starting with election news from EUobserver:

EU elections under way in Netherlands and UK

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

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

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

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

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

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

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

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

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

CNNMoney casts a different slant:

Europe’s own ‘tea party’ risk

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

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

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

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

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

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

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

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

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

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

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

Norway to ‘work harder’ to sell whale to Japan

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

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

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

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

Early Dutech electoral indications from euronews:

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

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

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

Germany next, and creeping imperialism from New Europe:

German cabinet adopts new Africa strategy

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

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

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

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

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

France’s left is through with Hollande

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

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

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

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

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

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

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

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

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

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

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

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

French cops to bulldoze Calais migrant camps

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

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

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

From the Guardian, a new supergrass:

Camorra mafia ‘super boss’ Antonio Iovine turns state witness

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

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

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

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

Reactions from the Independent:

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

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

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

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

TheLocal.it calls for lighting up:

Rome mayor backs decriminalizing cannabis

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

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

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

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

From ANSA.it, real GDP:

Economic value of prostitution in 2014 GDP accounts

  • Statistical agency to measure illegal drugs, cigarettes

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

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

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

From TheLocal.it, woes for Bunga Bunga Junior:

Prosecutors seek jail term for Berlusconi’s son

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

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

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

Striking news from TheLocal.it:

Italy’s newsstands set to empty as strike hits

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

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

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

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

Headlines: Cons, mergers, & Fukunightmares


Long collection of headlines from the worlds of economics, politics, environmental nightmares, and the Fukushima disaster, so we go straight on, first with a headline from New America Media:

FACTS ON ETHNIC ELDERS: Recession Leaves Ethnic Families ‘Beyond Broke’

Black, Hispanic and Asian Americans face an economic “quadruple whammy,” leaving them with little or no financial cushion as they age, finds a new study released Monday.

Titled “Beyond Broke: Why Closing the Racial Wealth Gap is a Priority for National Economic Security,” the study used 2011 Census data to examine household worth for all ages. It found that the medium net worth of households of color from 2005-2011 dropped 58 percent for Latinos, 48% for Asians, 45% for African Americans — but only 21 percent for whites.

“You have the racial gap in pay, the gender gap in pay, the ageism gap in pay and predominantly single-income households,” says Maya Rockeymoore, president of the Center for Global Policy Solutions (CGPS) which commissioned the study. “You’re looking at the intersection of all of these disparities.”

Injustice for all, via NPR:

As Court Fees Rise, The Poor Are Paying The Price

A yearlong NPR investigation found that the costs of the criminal justice system in the United States are paid increasingly by the defendants and offenders. It’s a practice that causes the poor to face harsher treatment than others who commit identical crimes and can afford to pay. Some judges and politicians fear the trend has gone too far.

A conducted by NPR found that defendants are charged for many government services that were once free, including those that are constitutionally required. For example:

  • In at least 43 states and the District of Columbia, defendants can be billed for a public defender.
  • In at least 41 states, inmates can be charged room and board for jail and prison stays.
  • In at least 44 states, offenders can get billed for their own probation and parole supervision.
  • And in all states except Hawaii, and the District of Columbia, there’s a fee for the electronic monitoring devices defendants and offenders are ordered to wear.

But some are doing well, via The Wire:

Tiffany Sold Much More Bling Than Usual This Quarter

Tiffany & Co. had an incredible quarter, blowing away analysts predictions. Tiffany reported $1 billion in revenue during the first quarter, jumping 13 percent from this time last year. Worldwide, sales increased 15 percent. Their income was $125.6 million, a 50 percent jump from 2013. Earnings were up $0.97 a share.

The key to these spectacular earnings numbers was not their highest-end luxury items, but Tiffany’s lower-cost pieces, led by the Atlas Collection. The most expensive piece in that collection is the Atlas Cocktail Watch, which is 18k rose gold and complete with 197 diamonds (just under two carats.) It’s cost is $26,500. While that might be pricey, pieces in the popular Elsa Peretti collection go well above $30,000 and the Yellow Diamonds collection offers a variety of pieces in the $100,000 range.

For these lower priced pieces, the profit margin is actually higher. This helped drive profit margins for the company as a whole. Last year, the margin was 56.2 percent, and this quarter it was up to 58.2 percent.

The Berkeley Blog covers another divide:

The Digital Divide Redux: Broadband, Net Neutrality, and the Comcast-Time Warner Merger

A few months ago, Comcast announced a $45 billion deal to purchase Time Warner. Although much of the initial commentary focused on the potential effect this proposed merger would have in the cable television market (since Comcast and Time Warner are the first-and second- largest cable providers in the US), the effects in the broadband market are far more important.  Research at the Haas Institute for a Fair and Inclusive Society suggests that broadband is an increasingly critical element of social, economic and civic life.

In its 2010 “National Broadband Plan” report, the FCC describes Broadband as “the great infrastructure challenge of the early 21st century.”  Just as the interstate highway system transformed residential life, facilitated the growth of the suburbs, and connected families to the broader economy of a region, broadband is a structural conduit for opportunity and upward mobility and in America today.  Unfortunately, like the interstate highway system and the residential patterns it engendered, broadband access and affordability may yet become a new form of segregation in America.  A research paper [PDF] co-authored by Haas Institute researcher Samir Gambhir notes the inequality of broadband access, affordability and quality experienced by low-income neighborhoods, rural households, and communities of color in particular.

The Comcast-Time Warner merger would give Comcast control over 40 percent of the country’s internet service in 19 of the country’s top 20 cable markets.  Imagine if one corporation privately controlled 40% of the most important roads, streets, highways and bridges in those same markets.  The issue isn’t just access; its affordability and quality (such as internet speed) for low-income families and many marginalized communities. If the Comcast-Time Warner merger reduces competition and increase the price of broadband access, the harms to upward mobility, economic opportunity and our nation would be far reaching.

And another merger warning sign from PC Advisor:

Comcast and Time Warner rank dead last in satisfaction as merger looms

  • A combined company would probably be even worse, according to the American Consumer Satisfaction Index.

In the latest survey by the American Customer Satisfaction Index (via DSL Reports), the two companies landed at the bottom of the list for both TV and Internet services.

Comcast scored 60 points for television service, which is five points less than the industry average, and three points lower than last year’s score. Time Warner Cable scored 56 points, down 4 points from last year, and nine points lower than the industry average. DirecTV and AT&T U-Verse were on top of the list with 69 points. (Incidentally, AT&T is now hoping regulators will approve an acquisition of DirecTV.)

Internet service was even worse. Comcast scored 57 points, down from 62 points last year, while Time Warner’s score dropped to 54 points, from 63 points in 2013. Both companies are now far below the industry average of 63 points, and nowhere near Verizon’s 71 points for its FiOS service.

Via Reuters, serial killers unite:

Exclusive: Reynolds American, Lorillard in advanced merger talks

Reynolds American Inc (RAI.N) is in active discussions to buy Lorillard Inc (LO.N) in a complicated, three-way transaction that could see British American Tobacco PLC (BATS.L) take a major role to back a potential merger, according to people familiar with the matter.

The proposed deal, which is in late stage talks, would unite the second- and third-largest U.S. tobacco companies that have a combined market value of nearly $55 billion, putting brands such as Reynolds’ Camel and Lorillard’s Newport under one roof.

The companies are working to finalize an agreement in as soon as a matter of weeks but the talks will likely take longer given the complex structure, the people said, asking not to be named because the matter is not public.

From the Yomiuri Shimbun, pushing the neoliberal agenda to the East:

Japan, U.S. play leading roles in acceleration of TPP talks

The progress made toward this summer’s broad agreement during ministerial-level negotiations on the Trans-Pacific Partnership pact in Singapore on Monday and Tuesday was largely due to accelerated discussions on tariffs, in response to the substantial agreement made between Japan and the United States.

Cooperation between the two nations to lead TPP talks also proved effective.

Speaking at a joint press conference after the two-day meeting, Australian Trade and Investment Minister Andrew Robb praised the acceleration of the negotiations as a whole in the wake of the breakthrough between Japan and the United States. He added that the progress in the Japan-U.S. negotiations had set a precedent for future negotiations on the TPP pact.

And pushing it to the West with EUbusiness:

New round of Atlantic trade pact talks opens in Washington

US and European negotiators opened a new round of talks on creating a transatlantic free trade zone Monday amid rising political and public resistance to the deal on both sides.

The fifth round of negotiations on the Transatlantic Trade and Investment Partnership (TTIP) will cover the details of proposals from the US and EU sides, with no aim to resolve the most difficult divisions between the two sides, officials said.

“This is clearly not the stage in which the difficult political decisions need to be taken,” an EU official said ahead of the talks.

Xinhua predicts:

World economy poised to grow moderately, but lower than pre-crisis levels

The global economy is expected to strengthen over the next two years, despite a downgrade of growth prospects for some developing economies and economies in transition, showed a UN report released here Wednesday.

In the mid-year update of UN World Economic Situation and Prospects (WESP), global growth rate was revised down from the forecasts presented in the WESP 2014.

Growth of world gross product (WGP) is now projected at 2.8 percent in 2014 and 3.2 percent in 2015, up from 2.2 percent in 2013, the report said. However, this pace of expansion is still lower compared to the growth level before the 2008 global financial crisis.

And on to Europe, first with Al Jazeera:

EU far-right expects success in elections

  • Eurosceptic, anti-immigrant parties hope to make big gains in vote for a new EU parliament.

From May 22-25, hundreds of millions of people from the European Union’s 28 member countries will vote for members of the European Parliament, one of the EU’s two legislative bodies.

The last elections were held in 2009, before the depths of Europe’s economic and financial crises. Since then, five EU countries – Greece, Ireland, Spain, Portugal and Cyprus – have required bailouts, and unemployment across the continent, especially among youth, has remained persistently high.

This has led many Europeans to sour on the union – a disenchantment reflected in polling figures that show a significant portion of the electorate plans on voting for far-right parties for the European Parliament.

These parties are highly sceptical of European government and the euro, and staunchly oppose immigration and multiculturalism. Far-right groups look poised to make especially large gains in the Netherlands, Greece, France and Hungary.

Britain next, and austerity rampant with the Independent:

NHS in the red: Hospitals forced to beg Government for equipment loans and electricity bills

The intense financial pressure faced by NHS hospitals has been laid bare in a series of letters, which range from pleas for bailout loans to replace defunct equipment, attempts to fend off legal threats from suppliers and even requests to pay off electricity bills.

Details of requests for short-term financial aid sent to the Department of Health reveal that one NHS trust was threatened with having the electricity supply shut off at a building on their hospital site, while another said it faced an “untenable level of equipment breakdown and obsolescence”.

The 15 loan requests, made in February and March this year, which were released following Freedom of Information requests from the Health Service Journal, reveal the impact of the NHS financial crisis for England’s most hard-up hospitals.

65 NHS trusts in England are already in financial deficit. A recent survey of NHS finance directors revealed that two thirds are concerned their trust will go into the red in the year of the General Election.

On to Paris and anticipated tarnishing from France 24:

Far-right win in European elections ‘will tarnish French image’

Most opinion polls in France forecast an unprecedented victory for France’s far-right National Front party in Sunday’s European elections, an outcome that observers warn will strip France of its influence on the continent.

Surveys indicate that the anti-euro National Front (FN) is poised to claim between 23 and 24 percent of all votes cast in EU parliamentary elections, which are less than a week away.

Buoyant from its best-ever performance in French municipal elections in March, in which it conquered 11 city councils, the far-right FN has campaigned under the slogan “No to Brussels, yes to France.”

A partisan plague from TheLocal.fr:

Immigration in France: No need for ‘Mr Ebola’

As the National Front’s Jean-Marie Le Pen courts trouble by suggesting the Ebola virus could solve the immigration problem in France, the author of a new OECD report on immigration in Europe says it’s no longer even a significant phenomenon in France.

As expected, given that he is vying for re-election as a member of the European parliament on Sunday, Jean-Marie Le Pen, the controversial honorary president of France’s anti-EU National Front party voiced his opinions on immigration this week.

Le Pen, who has been convicted of hate speech on numerous occasions, could be up in court again after suggesting the deadly Ebola virus could solve the global “population explosion” and thus Europe’s “immigration problem”.

Tracking down an error with AFP:

Red faces as new French trains ‘too wide’ for stations

Cash-strapped France will have to trim back some 1,300 rail platforms at a cost of 50 million euros after realising a brand new fleet of trains are too big to fit its stations, rail operators admitted Wednesday.

The problem affects 182 regional trains supplied by French manufacturer Alstom and 159 from Canada’s Bombardier, due to come into service by 2016.

Two state rail bodies, the Societe Nationale des Chemins de Fer (SNCF) and the Reseau Ferre de France (RFF), acknowledged the embarrassing situation in a joint statement on Wednesday after it was revealed by satirical weekly Le Canard Enchaine.

Via TheLocal.fr, pimping for laundromats?:

Far-right mayor bans drying laundry in public

The newly elected far-right mayor of the French town of Beziers has once again laid down the law to residents. After imposing a curfew on teenagers and higher fines for dog waste, Robert Ménard has now banned them from drying their laundry on their balconies.

Robert Ménard the far-right mayor of the southern French town of Beziers is back in the headlines this week.

Ménard was only elected two months ago, with the support of Marine Le Pen’s National Front party, but no one can accuse him of putting his feet up once in office.

Off to Austria with TheLocal.at and action contemplated:

Third of Austrians in favour of ‘tax strike’

Some Austrian companies have started a kind of tax strike – by refusing to make some tax payments they want to put pressure on the government to make more savings.

A poll carried out by the OGM market research group, on behalf of the daily Kurier newspaper showed that a third of people asked were in favour of a tax strike and believed that tax money is being wasted.

Fifty-two percent of people thought a tax strike was not justified, while 33 percent thought it was. “Most of the population is not self-employed and view entrepreneurs as rich, because people think they have big companies. Envy plays a role. Nevertheless it’s noteworthy that 33 percent approve of the tax boycott,” OGM pollster Karin Cvrtila said.

Deflating with TheLocal.at:

Real estate bubble: ‘The hype is over’

  • Austria has experienced something of a real estate bubble in recent years, but some experts believe the market is now calming down.

Specialists from the Austrian Chamber of Commerce’s advisory group on real estate have said that while property costs increased significantly in 2013, current signs suggest that this year growth should be relatively flat, according to the Wirtschafts Blatt.

“While there continues to be a general upwards trend – in many regions the price increases have stopped, the hype is over,” real estate chairman Thomas Malloth explained.

In January, the Austrian National Bank (ÖNB) warned of the possibility of a real estate bubble, with prices in Vienna for selected apartments rising by 21 percent over the previous 12 months. Tenants have been complaining about rising rents, which seem to have been driven by speculative investors.

Spain next, and a hard times intolerance intolerance from  El País:

Spanish government asks state attorney to crack down on Twitter hate speech

  • Prosecutor warns of difficulty of tackling all online insults in generalized way
  • “Incitement to hatred” provision cannot be applied to all cases, she says

The initiative began a month ago with an Interior Ministry order to “clean out the web” that resulted in 21 arrests for glorifying terrorism. Some of the suspects had been asking for Basque terrorist group ETA to kill again and mocking the victims of its decades-long campaign.

But the crackdown on hate speech has taken on new urgency following the recent assassination of Popular Party (PP) politician Isabel Carrasco, which spawned an outbreak of messages from people celebrating the murder and calling for further killings of PP members.

This week, Jewish associations reported more than 18,000 offensive messages on Twitter after Israeli basketball team Maccabi Tel Aviv beat Real Madrid on Sunday to win the Euroleague title.

Lisbon next and a diktat from Berlin via the Portugal News:

Germany tells Portuguese – Get out or get a job

The Portuguese secretary of state for the communities acknowledged on Wednesday that the government was applying political pressure to avoid the approval of a law by the German CSU party on the repatriation of unemployed immigrants.

“We are following the situation directly through our embassies and hope the decisions that are taken are not going to excessively penalise the Portuguese”, José Cesário told Lusa News Agency.

The ‘Diário de Notícias’ newspaper said on Wednesday that the CSU, one of the parties in Angela Merkel’s coalition government, had put forward a proposal that immigrants who had been unemployed for between three and six months should be repatriated. The paper said the measure could affect more than 5,600 Portuguese who are in Germany without a job.

Off to Italy and another Bunga Bunga scandal from TheLocal.it:

Ex-Berlusconi MP probed over labour aide’s murder

Prosecutors in Bologna have opened an investigation involving the murder of Marco Biagi, a labour ministry adviser who was shot dead in 2002, after it was revealed that senior polticians, including Claudio Scajola, an-ex minister, may have been aware of the danger he was under.

Biagi was assassinated by the extreme-left Red Brigades as he made his way home in March 2012, shortly after Scajola, who was interior minister at the time, had taken away his police escort.

Scajola is currently in jail in Rome after being arrested earlier this month for allegedly helping Calabrian businessman Amedeo Matacena escape a five-year-jail term for mafia collusion conviction.

From ANSA, not in a humoring mood:

Don’t send ‘clowns’ to Europe – Renzi

  • Premier says PD represents ‘seriousness’

Premier Matteo Renzi appealed to the Italian people not to vote for “clowns” in Sunday’s European elections. The broadside by the head of the centre-left Democratic Party (PD) was aimed at comedian-turned-politician Beppe Grillo and his anti-estasblishment 5-Star Movement (M5S). The PD is top in most polls, but Grillo is confident his M5S, who are second in the surveys after capturing a stunning 25% of the vote in last year’s general election, can come first with a late surge.

“We don’t need shows and clownery in the European parliament, we don’t need to climb on the roof,” Renzi said on Italian radio referring to a recent M5S protest on the roof of the Italian Lower House. “We need seriousness, people who are well prepared and further Italy’s interests”.

Renzi also blasted the language used in the campaign by Grillo, who, among other things, suggested that the premier will suffer a political “lupara bianca” – a term used to refer to a mafia hit that leaves no trace of evidence – after the European elections.

ANSA again, and he’s makin’ a list:

Grillo calls for ‘people’s trial’ of system after EU poll

Web-based trial to nail blame for Italy’s ‘collapse’

Beppe Grillo, leader of the anti-establishment 5-Star Movement (M5S), on Wednesday called for putting politicians, industrialists and journalists “on trial” using an online system and popular vote among M5S members after European Parliament elections this month.

The comedian turned politician wrote on his blog that the aim of the Web-based “trial” was to “inform citizens about the theft and embezzlement of a system that led to the collapse of Italy” “Just as you can’t build on rubble, you can’t build a new Italy without clearing the land of those who have plundered, transforming the fifth (sixth?) industrial power into a desert,” Grillo said.

The often foul-mouthed protest leader announced “lists” of suspects would be created.

Bunga Bunga bloviation from Corriere della Sera:

Berlusconi Attacks “Killer” Grillo

Former prime minister says M5S leader “killed three friends in an accident. Watching this gentleman moralise upsets me”. Grillo replies: “He doesn’t even believe what he’s saying any more”

“Grillo is a convicted criminal, a killer”. The Forza Italia (FI) leader went on: “Grillo knows all about staying out of jail. He is guilty of killing three of his friends by ignoring a no entry sign. He got 14 months for multiple manslaughter”. Mr Berlusconi, speaking on the La7 TV talk show L’aria che tira, raised the election campaign stakes. His most direct thrust was: “He ought to have gone to jail but he got away with it. He shouldn’t be talking about that sort of thing. Watching this gentleman moralise upsets me. And he only used to do shows if he was paid cash. He was known for that”.

Mr Berlusconi went on: “He killed three friends, ignoring a warning that there was ice on the road. He managed to get out of the car but his three friends didn’t. They died. He was sentenced to 14 months in jail for multiple manslaughter”. Speaking to Enrico Mentana on La7′s Bersaglio Mobile programme, the FI leader added: “I realise there’s an election coming up but when Renzi compares me to Grillo and says we’re two sides of the same coin, he’s way off the mark”.

Beppe Grillo was quick to respond. The Five Star MoVement (M5S) leader said Mr Berlusconi was a “poor thing who doesn’t even believe what he’s saying any more. He’s talk show-hopping for the sake of his businesses, not the electorate”.

And a Grillo spawn stigmatizes the poor, via TheLocal.it:

Mayor plans to scrap dessert for poor kids

Only wealthy children will be given dessert with their school lunches, while those from poor families will go without, under plans drawn up by a mayor in central Italy.

The mayor of Pomezia, Fabio Fucci, has proposed the two-tier menu system in response to requests from a number of low-income families, Corriere della Sera said on Tuesday.

Under the plan, parents will be able to pick from two menus of different prices. The more expensive one will come with dessert, while children from poorer families will go without the sweet.

The move by the Five Star Movement (M5S) mayor has been met with ire in some quarters.

After the jump, the latest from Greece [including new bribery scandals], Russia strikes a massive deal, the Libyan coup intensifies, a Ukrainian election ultimatum, a bumper cr[h]ash crop in Libya, Brazilian World Cup blues, Argentine bankster woes and student discontent, a Venezuelan stalemate, the new Dirty Digger, a bankster blessing for India’s theocon winner, Thai uncertainty, Chinese labor loses and a Putin partnership, an Abenomics push in Japan, environmental woes, stolen baby brains [and not by zombies], and the latest chapter of Fukushimapocalypse Now!. . . Continue reading

Headlines: CorporoEconoEcoPoliFarce


Having lost a host of entries through a browser crash, we’re feeling touched by absurdity, and so we begin with this from Taiwanese Animators:

AT&T buys DirecTV for $48.5 billion: Monopoly Media Mergers Edition

Program notes:

AT&T announced it plans to buy DirecTV, the top US satellite TV operator, for $48.5 billion in an attempt to grow beyond an increasingly hostile cellular market.

The deal was announced on Sunday. AT&T said it is offering $95 per DirecTV share in a combination of cash and stock, a 10 percent premium over Friday’s closing price of $86.18. The cash portion, $28.50 per share, will be financed by cash, asset sales, financing already lined up and other debt market transactions.

If the deal is approved by US regulators, AT&T would add 20 million DirecTV customers to its paltry 5.7 million U-verse customers, plus another 18 million DirecTV customers in Latin America.

The Wire adds more, less theatrically:

AT&T Promises to Uphold Net Neutrality for Three Years if DirecTV Deal Goes Through

In the event the $48 billion AT&T-DirecTV deal closes, the new joint company is promising to uphold the current net neutrality rules for at least three years. This promise would be valid regardless of how the FCC vote on the issue goes later this year.

In their proposal for the DirecTV purchase, AT&T issued a list of commitments, which they are calling “benefits of the transaction.”  One of these “benefits” is the following:

Net Neutrality Commitment. Continued commitment for three years after closing to the FCC’s Open Internet protections established in 2010, irrespective of whether the FCC re-establishes such protections for other industry participants following the DC Circuit Court of Appeals vacating those rules.

In the event the FCC’s paid prioritization proposal passes, AT&T won’t actually participate in the potentially multi-million dollar scheme (if they keep their promise, that is.) This is also a major show of good faith to the FCC, which will have to approve the merger.

From the Guardian, a rare cause of a faint twinge of something approaching but not exactly qualifying as joy:

Credit Suisse pleads guilty to criminal charges in US tax evasion settlement

  • Bank is first in more than a decade to admit to a crime in US and will pay more than $2.5bn in penalties

Credit Suisse Group has pleaded guilty to criminal charges that it helped Americans evade taxes, becoming the first bank in more than a decade to admit to a crime in the US. It will now pay a long-expected fine of $2.5bn (£1.5bn).

“This case shows that no financial institution no matter its size or global reach is above the law,” said the attorney general, Eric Holder. He said the years-long investigation had uncovered evidence of an “extensive and wide-ranging” conspiracy to hide taxes from the Internal Revenue Service (IRS) and the bank’s involvement in it.

“The bank went to elaborate lengths to shield itself, its employees, and the tax cheats it served from accountability for their criminal actions. They subverted disclosure requirements, destroyed bank records, and concealed transactions involving undeclared accounts by limiting withdrawal amounts and using offshore credit and debit cards to repatriate funds. They failed to take even the most basic steps to ensure compliance with tax laws,” said Holder.

From Al Jazeera America, an unsurprising correlation:

Study: Student debt worst at universities with highest-paid presidents

  • Executives at 25 universities saw 14 percent higher salary increase than national average after 2008 recession

Student debt and the hiring of relatively low-paid adjunct faculty rather than full-time professors have grown fastest at public universities with the highest-paid presidents, a new report found.

University president pay has risen dramatically in the aftermath of the 2008 financial crisis, according to the report, which focuses on 25 state universities that pay their presidents almost double the national average. Released Sunday by the Institute for Policy Studies (IPS), a progressive Washington D.C.-based think tank, the study is called The One Percent at State U — referring to the financial gains made by executives after the 2008 recession.

Nationwide, between the fall of 2009 and the summer of 2012, average executive compensation at public research universities increased 14 percent to $544,544, according to the study

Another unsurprising correlation, via KCBS:

Inner City Oakland Youth Suffering From Post-Traumatic Stress Disorder

The Centers for Disease Control said 30 percent of inner city kids suffer from post-traumatic stress disorder (PTSD). The CDC said these children often live in virtual war zones. Doctors at Harvard said they actually suffer from a more complex form of PTSD.

Unlike soldiers, children in the inner city never leave the combat zone. They often experience trauma, repeatedly.

“You could take anyone who is experiencing the symptoms of PTSD, and the things we are currently emphasizing in school will fall off their radar. Because frankly it does not matter in our biology if we don’t survive the walk home,” said Jeff Duncan-Andrade, Ph.D. of San Francisco State University.

A cross-border legal beef from the Canadian Press, with that old “corporate person” free speech once again at issue:

Canada-U.S. meat labelling row hears free speech arguments

Canadian livestock producers were in an American courtroom Monday fighting against labelling requirements blamed for having devastated their exports to the United States.

The case revolves around the free-speech rights guaranteed in the First Amendment, one of the most sacrosanct provisions of the American Constitution.

Canadian and Mexican producers, and the U.S. partners they supply, argue that those speech rights are being violated by the requirement that they stamp country-of-origin labels on meat packaging.

On to Europe, with growth at the margin from TheLocal.st:

Europe’s far right expect election gains

Europe’s far-right is looking to overcome deep divisions and establish itself as a major player in Brussels after EU elections this week where it is expected to make significant gains.

With voters tired of a European Union handing down decisions from on high, parties like France’s National Front (FN), Britain’s UKIP and Austria’s Freedom Party (FPOe) are going strong in the polls ahead of the May 22-25 ballot.

But it might not be all plain sailing in the months to come.

Ireland next, and austerity once again victimizing its victims, via TheJournal.ie:

Two rape crisis centres are to close temporarily as cuts take hold

  • The services in Clare and Tipperary will be closed for at least a month because of a €120,000 shortfall.

TWO RAPE COUNSELLING services in the Midwest are to be temporaily closed because of a funding shortfall the service estimates at €120,000.

Rape Crisis Midwest has centres in Limerick, Clare and Tipperary but is to close the latter two services for a least one month to save costs.

The service provides confidential one to one counselling to survivors of rape and childhood sexual abuse and says that it helps about 80 people a week.

Cash flowing from one end of Eurasia to another, via TheLocal.no:

Chinese tycoon agrees to buy Norway land

The Chinese property billionaire blocked from buying a huge chunk of Iceland is reportedly close to buying up a 100 hectares of the scenic Lyngen coastline.

Huang Nubo, a Communist party member who spent ten years working in the country’s propaganda ministry, on Thursday agreed to buy the site, which has already received planning permission for a series of villas, from Ola OK Giæver Jr, a local landowner, pilot and businessman.

“I can promise you a new era for Lyngen municipality. I trust that Huang Nubo will create huge and positive financial ripples throughout the north of Norway,” Giæver jr said. “There is not a better capitalist than Huang.”

Sweden next, and one way to make homelessness vanish, the neooliberal version, via TheLocal.se:

Stockholm says no to ‘freakshow’ soup kitchen

Stockholm municipality has ruled that a soup kitchen which had served hearty broth to the city’s homeless for the past two years must move on due to the risk of the city square being “turned into a zoo”.

“Nazis can march freely and water is thrown on people begging, but to create a meeting place to challenge politicians and other people to actually do something is obviously very dangerous and terrible,” Elin Jakobsson at Soup Kitchen Stockholm said in response to the decision via social media.

The organization has been active for the past two years and works both as a source of food and a monthly meeting place for the city’s homeless population. The soup kitchen requires a police permit and on Monday its application for renewal was rejected.

But it can be carried to far, of course, via TheLocal.se:

Shopkeeper charged over beggar dousing

A Gothenburg shopkeeper has been charged over the drenching of a beggar with water in front of his shop in March, an incident which sparked an outraged response on social media.

The man was charged on Monday with two counts of harassment.

The first was for an incident on March 10th when he threw a bucket of warm water at his own Hemköp window, effectively soaking a beggar sitting nearby. The second charge was for the day after, when the man did the same thing with a bucket of cold water.

On both occasions, the woman begging by the windows was drenched, and the prosecutor argued on Monday that both acts were carried out with intent.

From GlobalPost, going medieval:

In Germany, no means yes

  • A regressive definition of rape highlights the country’s stubbornly traditional attitudes toward women.

No means yes, at least in this country.

When a rape court in the state of North Rhine-Westphalia acquitted the alleged rapist of a 15-year-old girl in 2012, women’s rights advocates were outraged.

The ruling found that saying no, or even screaming it, wasn’t enough to merit rape charges. Now findings from a new study indicate that case was hardly unique, despite a European initiative to step up efforts to stop violence against women.

The number of German rape cases ending in convictions has plummeted from 22 percent to 8 percent over the past 20 years, according to a study released by the Hanover-based Criminological Research Institute of Lower Saxony

A suggestion for a foreign visitor from TheLocal.de:

Mayor urges Erdogan to cancel German trip

German politicians called on Turkish Prime Minister Recep Tayyip Erdogan on Monday to cancel an upcoming pre-election appearance to Cologne in the wake of a deadly mine disaster.

Amid mounting anger within Turkey over his response to last week’s coal mine blast in which 301 died, Erdogan faced condemnation and calls to cancel his visit next Saturday from across the political spectrum in Germany.

Erdogan is due to address supporters in Germany, where three million Turks or people of Turkish origin live, with a visit to the western city of Cologne. For the first time, some 2.6 million Turks living abroad, including 1.5 million in Germany alone, will be able to cast their votes in the August presidential vote in which Erdogan is expected to stand.

More from Deutsche Welle:

Germany urges restraint ahead of Erdogan’s planned speech in Cologne

The German government has urged Turkey’s prime minister to exercise restraint when he visits the country on the weekend. This followed calls from some German politicians for Recep Tayyip Erdogan to cancel his visit.

Chancellor Angela Merkel’s spokesman, Steffen Seibert told reporters in Berlin on Monday that as the prime minister of a “really close and important partner” nation, Erdogan was welcome in Germany, where he plans to deliver a speech to local Turks on Saturday.

At the same time, though, Seibert said the German government expected Erdogan to choose his words carefully at what he described as a “difficult” time, given the political tensions in Turkey in light of the recent mining disaster and the fact that it comes one day before the European elections.

Seibert said in light of this, the government expected Erdogan to deliver a “sensitive, responsible” speech, when he addresses thousands of his fellow countrymen and women at an indoor stadium in the western city of Cologne.

Another bankster busted, from TheLocal.fr:

Rogue trader Kerviel imprisoned in France

The former trader Jérome Kerviel was finally behind bars in France on Monday after being picked up by French police at midnight. Kerviel is due to start a three year prison sentence over his role in losing former employers Société Général €5 billion through high-risk trading.

French police arrested rogue trader Jérôme Kerviel at midnight on Sunday, shortly after he had crossed the border from Italy into France on his walk home from Rome to Paris.

A local prosecutor then announced on Monday morning that Kerviel was behind bars in the Riviera city of Nice.

TheLocal.fr again, with some reassurance for the poorest:

French income tax cuts for poorest to last to 2017

A plan to exempt France’s poorest households from income tax will not just be a one-off for this year, the government finance minister said this week. The income tax breaks will actually apply until 2017, the minister Michel Sapin said.

There was more cheer for the more hard-up tax payers in France on Monday when the finance minister Michel Sapin announced a government plan to apply the recently revealed breaks until 2017.

Sapin’s pledge comes days after French Prime Minister Manuel Valls made the headlines by announcing that the government plans to exempt 1.8 million households from the income tax burden.

From El País, Spanish repos rising:

Home repossessions up 10% in 2013

  • Spanish lenders took back nearly 50,000 properties last year
  • Figures released by Bank of Spain suggest more borrowers are handing back keys in payment

Spanish lenders repossessed 49,694 homes from defaulting borrowers in 2013, a 10% rise from a year earlier, figures released on Monday by the Bank of Spain show.

Of these, 38,961 were first residences, according to statistics provided by the banks. The vast majority of properties were empty at the time of repossession.

Meanwhile, the proportion of cases involving dation in payment, in which borrowers in arrears hand over the keys of the property to the lender that approved the mortgage to cancel debt obligations, reached 32.5% of all repossessed homes.

Pimping the rich fails to enrich, via TheLocal.es:

Spain’s ‘golden visa’ scheme fails to shine

Just 72 people have signed on to a controversial Spanish ‘visa for cash’ scheme which grants automatic Spanish residency to people who buy a property worth at least €500,000 ($685,000).

The so-called ‘golden visa’ scheme has reaped only small rewards, according to Spain’s El País newspaper.

Introduced in September 2013, the law gives foreigners who invest large sums in Spanish property, public debt and projects of general interest the right to reside in Spain.

And from thinkSPAIN, another way California is like Spain:

Worst drought in 150 years hits southern and eastern Spain

A DROUGHT of the scale not seen in over a century and a half is threatening water resources in Spain’s south and east after the lowest rainfall on record over the autumn, winter and spring.

The worst-hit provinces are Valencia and Alicante where, following a sudden and unprecedented gota fría or Mediterranean ‘monsoon’ in late August, it has barely rained between September and June.

Murcia, Albacete, Cuenca, Teruel, Cádiz, Málaga, Jaén and Almería are also at high risk – the only provinces in Andalucía which are safe are Granada, Sevilla and Huelva.

From El País, and how [to employ a sexist term] broad-minded of them:

Spanish conservatives forgive sexist remarks by their European contender

  • Women at Popular Party rally play down Arias Cañete’s views about male “intellectual superiority”

It was just a minor “slip.” Popular Party (PP) voters are writing off as unimportant statements about the intellectual superiority of men made last week by the party’s top European candidate, Miguel Arias Cañete, despite leaders’ fears they might have jeopardized his chances of winning.

Several women who attended a Sunday rally by Prime Minister Mariano Rajoy and PP secretary general María Dolores de Cospedal in Cuenca sought to play down the controversy over the sexist remarks.

During a televised debate with Elena Valenciano, his Socialist rival in next Sunday’s European elections, Arias Cañete claimed that he had held back from serious intellectual confrontation because “if you abuse your intellectual superiority, you end up looking like a sexist intimidating a defenseless woman.”

Italy next and a wiseguy lipoff lambasted via ANSA.it:

Renzi hits back after Grillo mafia jibe

  • Premier says PD marks real face of change

Premier Matteo Renzi hit back Monday after Beppe Grillo, the leader of the anti-establishment 5-Star Movement (M5S), used a Mafia jibe to suggest his political career was close to ending as the campaign for Sunday’s European elections grew increasingly venomous.

Renzi’s centre-left Democratic Party (PD) is top in most polls, but Grillo is confident his M5S, who are second in the surveys after capturing a stunning 25% of the vote in last year’s general election, can come first with a late surge.

“Renzie has been hired on a temporary project to win the European elections, but he’ll lose them,” Grillo wrote Monday on his popular blog, using a nickname that refers to the premier’s alleged attempt to come across as cool like TV’s Fonzie.

TheLocal.it notes another grime number:

Italy’s employment rate is one of Europe’s worst

  • The Italian employment rate fell to 59.8 percent last year, one of the worst in Europe, according to figures released on Monday by the European Commission.

Fewer than 60 percent of Italians aged 20 to 64 were employed in 2013, far below the EU average of 68.3 percent.

The new figure sees Italy slip to figures not seen for over a decade, with last year’s rate just higher than the 59.2 percent recorded in 2002. Between then and 2008 the situation steadily improved for workers in Italy, until the global financial crisis struck and led to a steady decline in employment.

According to the European Commission data, Italy now has one of the worst employment rates in Europe, just slightly higher than Spain’s 58.2 percent. Only Greece, with 53.2 percent, and Croatia (53.9 percent) fared worse in 2013.

ANSA.it demands:

Napolitano says EU must help on migrants

  • Italy is main entrance for flow that’s creating emergency

President Giorgio Napolitano said Monday that the European Union must provide Italy with greater help in coping with a massive wave of migrants arriving from North Africa. “Today we are faced with the absolute need to achieve a concrete, operative model of cooperation with the European Union,” Napolitano told Italian officials at the United Nations in Geneva, ANSA sources said. The Head of State added that while migrant arrivals had caused an emergency for all of southern Europe, Italy is “the main entrance”. There has been friction between Rome and Brussels after two migrant boat disasters south of Italy last week in which around 60 people are confirmed dead and many more may have lost their lives.

Rome says the EU is not doing enough to support it after it launched the humanitarian Mare Nostrum (Our Sea) search-and-rescue border operation in October, after roughly 400 migrants drowned in two wrecks off the coast of Sicily.

On Wednesday Premier Matteo Renzi accused the European Union of looking the other way as Italy struggles to cope with the crisis.

After the jump, fascinating electoral news from Greece, the latest from the Ukraine, Libyan turmoil, pre-World Cup jitters in Brazil, polio rising, a Thai takeover, Chinese real estate developments, Japanese Trans-Pacific intransigence, melting polar caps, other environmental woes, and the latest in Fukushimapocalypse Now!. . . Continue reading

India’s winners: Hindu fundies and neoliberals


The Indian vote is important in so many ways, given the simmering regional tensions we’ve dubbed the Game of Zones.

We begin today’s coverage with a another video report from The Real News Network featruing a Sharmini Peries interview of Nagesh Rao, a Colgate University lecturer of university studies, a post-colonial studies scholar, and an antiwar activist:

It’s a Decisive Victory for the BJP in India.

From the transcript:

RAO: Well, to start with, I think we have to see that this is a very difficult time for most Indians. Going into this election, the media and the corporate sector in India had already anointed Narendra Modi prime minister well before the voting had begun. And the candidate of corporate capital and of Hindu nationalist right wing movement is now poised to become prime minister.

As you probably know, Narendra Modi is, of course, most notorious for the fact that he at the very least didn’t do anything to stop the pogroms against Muslims in Gujarat in 2002, and he’s seen as a very divisive and authoritarian figure for many of these reasons.

PERIES: Nagesh, while Modi is–you know, his historical record has been made very public and attacked for his Hindu fundamentalism and inciting riots in terms of his history, he however in this particular election comes out not talking about any of that but talking about real issues that concern the people, like jobs. Yes?

RAO: Mhm, yes, except that the way he’s talked about these real issues has been in terms of so-called development, looking at the Gujarat model, as it’s been called. As chief minister of Gujarat, he claims to have developed Gujarat in a way that no other state has in India, and he hopes to implement that same model across the country.

The thing to recognize is that Modi’s sort of reinvention, his reinvention as a developmentalist, as someone who’s going to focus primarily on jobs, the economy, and so on and so forth, has been fairly recent in origin. Because of his success in Gujarat, sections of corporate capital anointed him precisely because they want to see all the barriers towards capital accumulation in India lifted. So further neoliberalism, further privatization, further deregulation, this is what lurks behind the model of development that’s known as the Gujarat model.

That said, that said, I think it’s important to recognize that the communalist, fundamentalist element of Modi’s being wasn’t entirely forgotten during this campaign, and he and his allies have done as much as they could to both emphasize this Gujarat model of development on the one hand, but also kind of Hindu nationalism and fundamentalism on the other.

And for more detail, we’ve extracted our Indian electoral headlines for of daily [usually] collection of political news headlines, revealing an array of significant consequences.

First, from the Times of India:

Modi to have free hand in both govt and party

Amid fierce lobbying for ministerial berths by BJP aspirants, RSS on Sunday claimed that it will not interfere with government formation, in a clear signal that Narendra Modi has a free hand in picking his team and that anxious seniors need to settle their claims with the PM-elect rather than bank on the Sangh to intercede on their behalf.

Articulating the RSS position, Sangh leader Ram Madhav said, “Sangh has not given any guidelines to BJP after its historic victory in Lok Sabha polls, nor to Modiji… RSS never keeps any remote control to perform any role in politics and government.”

However, Madhav said the Sangh may give suggestions, and expects the government to be sensitive to the Parivar’s ideological orientation. “People’s representatives who won in Lok Sabha polls are aware of the Sangh’s ideology and they know how to do work and take forward its ideology. There is no way that RSS would interfere in government’s functioning and politics. However, if required, Sangh may give suggestions,” he said.

CNNMoney covers the market reaction:

Modi win boosts Indian markets

India’s stock market surged Friday after early election results suggested a sweeping victory for Narendra Modi and the pro-business Bharatiya Janata Party.

Investors reacted to the news with enthusiasm, and Mumbai’s Sensex index advanced by more than 5% in early trading before paring gains to close 0.4% higher. The rupee strengthened by more than 1% and hit a new 10-month high against the dollar.

The prospect of a Modi-led government has helped boost India stocks by almost 13% since the start of the year. The rupee has responded too, clawing its way back from a dismal performance in 2013.

From the Economic Times, more evidence that the rich were the real winners, though by way of perspective, 10 million rupees amounts to a mere $170,740 — but in India, that’s not exactly chump change:

21 out of 26 candidates elected to Lok Sabha from Gujarat are crorepatis

Out of 73 crorepati candidates who had contested either on their respective party’s ticket or as independent in the Lok Sabha polls at the 26 seats of Gujarat, 21 BJP candidates have emerged victorious.

80.76 per cent candidates, who are elected as the Member of Parliament on 21 seats have the assets of more than one crore to around 80 crores.

The crorepati candidates who have registered victory in the 16th Lok Sabha polls include big names like country’s ‘to be prime minister’ Narendra Modi, deputy PM and veteran leader LK Advani and bollywood actor Paresh Rawal.

And USA TODAY foresees an invasion [or an exodus, seen from this side of the Pacific]:

India’s new party election could lure U.S. firms

The sweeping victory of India’s opposition party and its pro-business leader will likely create a more stable, tax-friendly investment climate for U.S. companies, analysts say.

On Friday, the Bharatiya Janata Party (BJP) and its allies won more than the 272 seats needed for a majority in Parliament, pushing the long-dominant Congress party from power and setting the stage for Hindu nationalist Narendra Modi to become the next prime minster of the world’s largest democracy.

“This is really historic,” says Milan Vaishnav, an India expert at the Carnegie Endowment for International Peace, noting it’s the first time since 1984 that India will have a single-party majority government. “It’s going to create a certain sense of stability … U.S. companies are very excited,” he says, adding Modi will govern as a “pragmatist who wants to show India is ‘open to business’.”

Headlines: EconoEcoGrecoFukuFollies redux


We begin today’s compendium of news from the worlds of economic, politics, and the enviornment — including the latest sobering news from the Fukushima nuclear reactor disaster with a march back in time to the days of the ancient Roman tax farmers with a headline from the Washington Post:

Congress moves to turn back taxes over to debt collectors

The Internal Revenue Service would be required to turn over millions of unpaid tax bills to private debt collectors under a measure before the Senate, reviving a program that has previously led to complaints of harassment and has not saved taxpayers money.

The provision was tucked into a larger bill, aimed at renewing an array of expired tax breaks, at the request of Sen. Charles E. Schumer (D-N.Y.), whose state is home to two of the four private collection agencies that stand to benefit from the proposal.

It requires all “inactive tax receivables” to be assigned to private debt collectors if the IRS cannot locate the person who owes the money or if IRS agents are unable to make contact within a year.

Some taxpayers would be spared the barrage of notices and phone calls, including innocent spouses, military members deployed to combat zones and people “identified as being deceased.”

And from United Press International, a three alarm hint of the consequences of resurrecting tax farms:

Foreclosures drive up suicide rates, study finds

“Losing assets at that stage in life is likely to have a profound effect on mental health and well-being,” said Jason Houle.

Data analysis has previously shown economic downturn to provoke an increase in suicide rates, but a new study shows an even stronger correlation between suicides and foreclosure rates.

According to research published this week in the American Journal of Public Health, higher rates of suicide are uniquely linked to spikes in foreclosures.

By comparing state-by-state suicide rates with the numbers of issued foreclosures — while accounting for other disruptive factors — the researchers were able to conclude that the correlation was “independent of other economic factors associated with the recession.”

From the San Jose Mercury News, back to the bad old days:

Report: California among worst in the nation in school segregation

As racial separation in education steadily grows, California now leads the nation in children going to school with their own kind, a UCLA study released Wednesday contends.

On the 60th anniversary of the landmark U.S. Supreme Court Brown vs. Board of Education ruling intended to dismantle segregation, the report by UCLA’s Civil Rights Project says that California students are more likely than ever to attend racially isolated schools.

In the Bay Area, most schools followed the same pattern, though were more integrated than schools in Southern California.

From Salon, one of the major reasons:

Fox News’ divisive race strategy: How O’Reilly, Hannity and Coulter intentionally tore America apart

  • False claims go unchallenged, racial fears are stoked — and political scientists discover it helps GOP at polls

Right-wing political figures have often defended the content of Fox News and other right-leaning media. A common ploy is the insinuation that the “mainstream” news establishment is in fact biased in favor of liberal ideological framings of issues or that it is actually antiwhite. For example, Sarah Palin famously blamed the “leftist lamestream media” for allegedly pressuring Newt Gingrich to soften his critique of Republican congressman Paul Ryan (while in fact the disapproval came from Fox News), and Palin again insinuated charges of political targeting when she decried the media as attacking right-wing figures with their brand of unfair “gotcha journalism.” Rush Limbaugh also compared the mainstream press to a “drive by shooter except the microphones are guns.” Limbaugh further asserted that the anti-right, mainstream media attempts to “destroy people’s careers. Then they get in the convertible, head on down the road and do it all over again, while people like you and me are left to clean up the mess with the truth. So I call them the drive-by media.”

And from United Press International, com;eting the taming of the Times:

Glenn Greenwald: Dean Baquet is too ‘subservient’ for journalism

Former executive editor of the New York Times Jill Abramson was abruptly fired this week. The lack of explanation for her dismissal has caused the newspaper to receive biting criticism.

Glenn Greenwald slammed the New York Times for the decision to make Dean Baquet executive editor, saying he will lead the newspaper into “neutered” journalism.

He may have had harsh words for Baquet but had nothing but compliments for his predecessor Jill Abramson, who was unexpectedly fired from her position earlier this week. In an interview with HuffPost Live, Greenwald said in the last ten years Abramson has been the “best advocate for an adversarial relationship between the government and the media.”

Greenwald, most famously known as the journalist to first publish the documents leaked by former NSA contractor Edward Snowden, is a strong proponent for freedom of the press and transparency in government.

From the Christian Science Monitor, another hint of things to come:

California wildfires set relentless pace months before typical season

This week, San Diego is the hardest hit. But drought, blistering winds, and unseasonably hot temperatures have produced 1,244 wildfires across the state this season, and officials expect no letup.

San Diego residents are bracing for a second day of wildfires, with temperatures expected to hit a high of 106 degrees, after at least nine fires closed schools and roads forced more than 21,000 people from their homes on Wednesday.

Thousands remain perched in front of their television sets, watching local broadcast team coverage of wildfires and hoping the wind won’t bring the fire and smoke toward their own communities.

For many Californians, the wildfire season has settled into expectation and habit. But this year, the highly flammable combination of record heat, the seasonal Santa Ana winds, and lack of rain are exacerbating the problem and producing severe fire conditions several months ahead of the usual fire season.

From the Guardian, resistance:

Fast-food strike: US workers join world protests over wages and union access

  • Calling for higher pay and the right to form a union without retaliation, fast-food workers staged protests on Thursday in 150 cities across the US and in 33 other countries

And from Al Jazeera America completing corporatization:

FCC votes to advance new Internet rules

  • In split decision, commission put forward rule change that could lead to firms being charged for fast track delivery

The Federal Communications Commission (FCC) voted Thursday to formally put forward new rules on net neutrality that may result in a two-tier delivery service to consumers.

The controversial changes being proposed could allow for providers to charge content sites like Netflix for faster service. But it would prevent them from blocking or slowing down certain websites. The proposals were widely anticipated and have been the subject of intense debate in recent months.

Opponents of the new rules staged protests outside the FCC’s headquarters.

But Deutsche Welle raises an obstacle:

German Economy Minister: ‘Google breakup may be required’

German Economy Minister Sigmar Gabriel has warned US Internet giant Google could eventually achieve such a strong market position that a breakup of the company could become an option to consider. Google was not amused.

While failing to explain how exactly to enforce a breakup of a US-based company, Sigmar Gabriel said Friday such a move could be a last resort for countries seeking to prevent Google from “systematically crowding out competitors.”

The German Economy Minister made those remarks in an op-ed published by the German Frankfurter Allgemeine Zeitung (FAZ) newspaper, painting an alarming picture of the threat posed to society by Internet companies.

“It’s about nothing less than the future of democracy in the digital age and therefore also about the self-determination of 500 million people in Europe,” Gabriel commented.

Via the Christian Science Monitor, more privatization:

Detroit bankruptcy: Bondholders balk at plan for city’s artworks

The collection is central to how the Detroit bankruptcy plan is carried out. Bondholders – one group in the bankruptcy – believe the art should be valued higher, but the judge in the case isn’t making a reappraisal easy.

Judge Steven Rhodes, who is presiding over Detroit’s efforts to emerge from bankruptcy, agreed last week to a restructuring plan submitted by the city. The plan still requires a vote by pension groups, labor organizations, and bond insurers, and state lawmakers would have to approve a $350 million cash injection from the state. But it has appeared that most groups are onboard with the plan.

A potential snag, however, appeared Thursday. In a three-hour hearing, attorneys representing two bondholders – creditors for the city that do not fare as well in the plan as some other groups – took aim at the arrangement that has been struck for the city’s art collection at the Detroit Institute of Arts (DIA). That collection is central how the plan is carried out.

The plan values the collection at $816 million, but the bondholders argue it should be worth more. A higher value for the collection could enable the city to fulfill more obligations.

On to Europe, first with BBC News:

Eurozone economic growth loses momentum

Eurozone economic growth lost momentum in the first three months of 2014, official figures show, with the growth rate unchanged from the previous quarter at 0.2%.

That was weaker than many economists had expected.

German growth picked up pace, with the economy expanding by 0.8%.

But France and Italy disappointed. The French economy failed to grow, while Italy’s contracted by 0.1%, having only just emerged from recession last year. Spain’s economy grew by 0.4% in the first quarter.

On to Old Blighty with BBC News and a truly terrible privatization:

Academics warn over child protection privatisation

A group of academics say they have serious concerns about proposals to let private contractors take over some child protection services in England.

Professor Ray Jones of Kingston University said child protection was too important to be handled by firms “driven by the profit motive”.

He said any such move could be destabilising and cause “chaos”.

BBC News again, running out of gas:

UK’s oil, coal and gas ‘gone in five years’

In just over five years Britain will have run out of oil, coal and gas, researchers have warned.

A report by the Global Sustainability Institute said shortages would increase dependency on Norway, Qatar and Russia.

There should be a “Europe-wide drive” towards wind, tidal, solar and other sources of renewable power, the institute’s Prof Victor Anderson said.

The government says complete energy independence is unnecessary, says BBC environment analyst Roger Harrabin.

The report says Russia has more than 50 years of oil, more than 100 years of gas and more than 500 years of coal left, on current consumption.

Class divisions with the London Telegraph:

One in five university graduates becomes a millionaire

  • More than two million degree-holders have a net worth of £1m or more as new statistics reveal the education gap between rich and poor

One person in five who receives university education becomes a millionaire, according to official figures.

Twenty per cent of all adults who hold at least one university degree — more than two million people — now have wealth totalling at least £1 million, data from the Office for National Statistics show.

Almost a tenth of all British adults now own assets — property, pensions, savings and physical objects — worth £1 million or more.

The total number of millionaires in Britain has risen by 50 per cent in four years despite the recent financial crisis. The figures showed a stark gap in wealth between people with different levels of education. Only three per cent of people with no formal educational qualifications have assets worth more than £1 million.

Norway next and Obaman umbrage from TheLocal.no:

Top Obama aide raged at Norway over Nobel

  • Norway’s ambassador to the US received an angry “dressing down” from Barack Obama’s chief of staff after the US President won his controversial Nobel Peace Prize in 2009, a senior Norwegian diplomat has claimed.

Morten Wetland, Norway’s former ambassador to the United Nations, told The Local that Rahm Emanuel, nicknamed “Rahmbo” for his explosive disposition, has taken US ambassador Wegger Strömmen to task after the award was announced.

“What I know for a fact is that he gave the ambassador some words, ‘a dressing down’, with respect to this,” Wetland said. “The word ‘fawning’ was used.”
Wetland, now a partner with the Oslo lobbying firm First House, speculated that Obama’s advisors must have seen the prize as an unwelcome embarrassment.

“My guess is that the president’s staff want to be in control and not to be forced into a position that they have not been seeking themselves,” he said. “It could have been perceived that someone was consciously or subconsciously thinking about the prospect of having Obama visit Norway. Obama wouldn’t have visited Norway if it hadn’t have been for the Peace Prize.”

On to Germany, sprinting ahead with EUbusiness:

Germany sprints ahead of flagging eurozone recovery

The German economy, Europe’s biggest, sprinted ahead in the first quarter of 2014, amid a big setback for the eurozone which highlighted the fragility of the recovery, data showed on Thursday.

Germany, the region’s economic locomotive, saw growth double to 0.8 percent in the period from January to March, the strongest quarterly growth for three years and ahead of analysts’ expectations.

But the French economy, described by some economists as the weak link in Europe, turned in zero growth in the same period, highlighting divergence between the eurozone’s two biggest economies which is of deep concern to policymakers.

Austria next, with intolerance rising from TheLocal.at:

Right-wing march in Vienna

Supporters of a German right-wing radical group Die Identitaere Bewegung (The Identity Movement) are holding a march in Vienna on Saturday.

The movement, initiated by disaffected, tech-savy youth, began in France and now has groups in Germany and Austria.

The group spreads its anti-Islamic, anti-multicultural message via social media and has gained attention by posting clips of its protests on YouTube and Facebook.

France next, and the neoliberal imperative from TheLocal.fr:

Europe warns France about protectionism

The European Commission warned France on Thursday against resorting to protectionism after Paris unveiled new measures to head off hostile foreign bids for key companies.

“The objective of protecting essential strategic interests is clear when it involves security or public order and that is recognised in EU treaties,” EU Finance Markets Commissioner Michel Barnier said.

“But we also must check if this is applied in a proportionate fashion, otherwise it could amount to protectionism,” said Barnier, a French politician.

From TheLocal.fr, another quarter heard from:

US business body scolds French ‘protectionism’

  • The leading US business group on Friday called France protectionist, after Paris asserted its right to veto any foreign takeover of key French companies.

The US Chamber of Commerce said the move by Paris, announced Thursday as US industrial giant General Electric presses to buy a division of France’s Alstom, would not help the country’s economy.

“From an open investment policy perspective there is nothing about the motivations behind the recent French decree… that isn’t explicitly a mix of industrial policy and protectionism,” said Sean Heather, executive director for international policy and antitrust policy at the chamber.

Such moves are “doing nothing to increase the country’s competitiveness,” he told AFP.

From TheLocal.fr, striking news:

Flights snarled as French civil servants strike

A country-wide civil servant strike on Thursday meant headaches for travellers on Thursday with dozens of flights cancelled. Strikers are angry about a four-year pay freeze that shows no signs of thawing.

Travellers were scrambling for alternatives on Thursday after a national civil servant strike meant dozens of flights were cancelled and dozens more delayed at France’s biggest airports.

Fliers coming into and out of Toulouse, Paris and Lyon were among those stuck on the ground with at least 20, 16 and seven cancellations respectively in the first half of the day, French daily Le Parisien reported.

From the Guardian, without comment:

Unemployed people in Czech Republic are ‘missing out on office sex’

  • Social Democratic party Euro election campaign video aims to highlight plight of young adult jobless in the country

The Czech Social Democratic party (C(SSD), which is hoping to add to its seven MEPs in Strasbourg, endorsed the video posted by its youth branch, the message of which can be summed up as “unemployment is depriving people of the joys of an office fling”.

The video shows a young woman in office clothes working at a computer. After glancing at the clock, she sneaks off to the next room and can be seen in passionate embrace with a colleague behind the adjoining door.

“Everybody who wants to should be able to enjoy something a bit different during breaks. It is a shame there are half a million people who don’t have jobs,” says a voice-over accompanying the video.

Spain next, and another American arrives via El País:

US wholesaler Costco opens first Spanish megastore in Seville

  • Warehouse club confident it can overcome reticence of local customers to pay membership fee

They have managed to get 15,000 people to pay for the privilege of shopping at their store, and they haven’t even opened their doors yet.

The US warehouse club chain Costco is disembarking in Spain with a first establishment due to open in Seville today.

Though modest, this incursion into Spanish territory has not gone unnoticed by the distribution sector, which will keep a close watch on the performance of its new rival.

El País covers costs:

Overrun costs or corruption? Why Spain’s public works are in crisis

  • In six years, the government has paid out €10bn to cover excess spending on construction projects
  • The amount is equivalent to the cuts it made on health and education when it came to office
  • Arrests of nine on embezzlement charges provide latest example of an overly abused process

Between 2008 and 2014, the Public Works Ministry has paid out €5.12 billion to modify already completed works. A further €4.1 billion has been paid to cover cost overruns, along with €900 million for expropriating land. In total, over the last six years, the Public Works Ministry has had to find more than €10 billion to cover cost overruns on roads, rail and ports, the same amount that Prime Minister Mariano Rajoy announced he would be cutting from health and education spending in April 2012, shortly after he took office.

There are any number of examples: the new port complex at A Coruña was tendered in 2004 for €436 million, and then awarded later that year for €370 million, according to Spain’s Ports Authority. The job ended up costing €547 million. And more money will be required, with the final cost likely to be more than €700 million.

The Environment Ministry, the government’s other big public works spender, paid out €1.5 billion in cost overruns between 2004 and 2012 on desalination plants, dams and other projects.

From TheLocal.es, cash and a black hole:

Spain’s ‘black’ economy worth 25 percent of GDP

Spain’s illegal economy is worth a staggering 24.6 percent of its gross domestic product and the country needs to pump far more resources into its rickety tax collection regime, a top tax union said on Friday.

Spain is a world leader in fraud with around €253 billion ($347 billion) in illegal money floating around in the country’s economy in 2013, Spain’s tax office union Gestha said in a statement on Friday. This figure has also risen €50 billion since the country’s crisis kicked in in 2008.

Critically, Gestha also argues Spain that Spain is chronically short-staffed when it comes to fighting tax evasion. Spain has one tax worker for every 1,958 inhabitants, against 942 for France and 740 for Germany, the union said in its statement.

On to Italy and the latest bad numbers from ANSAmed:

Italy returned to negative growth in first quarter

  • GDP down 0.1% on last three months of 2013 – Istat estimate

Italy returned to negative growth in the first quarter of 2014, with gross domestic product (GDP) dropping 0.1% compared to the last three months of 2013, Istat said Thursday in its preliminary estimate for the period.

The national statistics agency said GDP was 0.5% down in the first quarter of this year with respect to the same period in 2013.

The figures are a big blow to Italy’s hopes of seeing a strong economic recovery after it emerged from its longest postwar recession in the second half of last year.

More austerity from TheLocal.it:

Italy’s state broadcaster braces for cuts

Prime Minister Matteo Renzi has hinted at funding cuts to Italy’s state broadcaster Rai, saying the network “must also participate” in cuts as part of the government’s spending review.

The social media-savvy prime minister took to Twitter on Wednesday to announce “The future will also arrive at Rai,” following a heated debate on the broadcaster’s leading talk show.

“Rai must also participate in the spending review,” Renzi said on Rai 3′s Balarò programme on Tuesday evening.

The prime minister would not be drawn on a specific sum of cuts to the state broadcaster, although he said Rai’s numerous regional offices could be sites of “resounding waste”.

TheLocal.it again, with a neoliberal imperative:

Italy approves postal service privatisation

Italian Prime Minister Matteo Renzi’s government on Friday approved the sale of up to 40 percent of the postal service as part of a wide-ranging privatisation programme to raise some €12 billion.

The sale “can be carried out in several stages and through a public offering,” read the statement from a cabinet meeting authorising the sale of Poste Italiane, which is expected to raise around four billion euros.

The cabinet meeting also approved the sale of Enav, the state air traffic control agency, which could bring around 1.0 billion euros into state coffers.

The government is also planning to list up to 49 percent of state-owned shipbuilder Fincantieri in the biggest privatisations in two decades as part of an effort to reduce Italy’s towering debt mountain.

From ANSA, Bunga Bunga hubris:

Pope doing job as I would have says Berlusconi

  • ‘We’re same age but I look better’ says ex-premier

Ex-premier Silvio Berlusconi on Friday said Pope Francis was doing his job exactly as he would have done if he had been elected head of the Catholic Church. “Yes, I like Pope Bergoglio. He is being pope exactly the way I would have done it,” Berlusconi said of former cardinal Jorge Mario Bergoglio.

The journalist the billionaire media mogul was speaking to noted that the pope and the centre-right leader are the same age, 77.

“The same age, but I look better for my years,” said Berlusconi.

TheLocal.it warns:

Magistrate sent bullets after Berlusconi ruling

A magistrate in Milan received bullets in the post after ordering former premier Silvio Berlusconi to do community service for tax fraud, Italian media reported on Thursday.

Public Prosecutor Ilda Boccassini received the bullets at her Milan office in April, remarking that they were the latest in a string of threats.

“I received the most recent bullets a few days ago when we decided Berlusconi should do community service,” she was quoted in La Stampa as telling Superior Council of Judiciary (CSM).

While ANSA covers the latest in growing evidence of Bunga Bunga mob ties:

Mafia arrests may be linked to Scajola

  • Two police officers among arrests, probe mole suspected

An anti-mafia round-up of 18 people on Friday – regarding alleged infiltration of the Neapolitan Camorra mafia into the northwestern Tuscan coastal area of Versilia – may be linked to last week’s arrest of former Italian interior minister Claudio Scajola, investigators said Friday.

Two police agents, working for the Italian premier’s office and the Lower House, were placed under house arrest in Friday’s anti-mafia sting, accused of breaching the confidentiality of investigations.

Information leaks indicate that investigators has focused on the hypothesis that a mole may have furnished Scajola with privileged information on criminal investigations.

And TheLocal.it, an all-too-common story:

Migrants revolt at Rome detention centre

Clashes erupted at an immigration detention centre in Rome on Thursday as around 250 people barricaded themselves inside the building, described as a place of “desperate detention” by one rights group. The protest comes in the same week a Tunisian man sewed his mouth shut in protest at a nearby facility.

Around a third of the 780 people detained at the facility in Castelnuovo di Porto, north of Rome, joined the protest on Thursday morning, La Repubblica said.

Police were brought in to break through the barricaded entrance and reportedly used a water hose to dispel some of the protesters, who threw stones at police officers, the newspaper said.

After the jump, the latest from Greece, Ukrainian anxieties, Turkish anger, Latin American troubles and a surprising alliance, the right surges to power in India, Thai coup hints, Chinese investor worries, a Japanese surge for the rich accompanied by bad news for the poor [sound familiar?], environmental woes [including the collapse of the American bee population], and the latest chapter of Fukushimapocalypse Now!. . . Continue reading

Headlines: Pols, lies, eCons, and polluters


Today’s tales from the worlds of economics, politics and the environment — plus added Fukusihmapocalypse Now! — opens with hope for modest relief for some via the Guardian:

Sallie Mae and Justice Department in $60m deal over military student loans

  • US government had claimed the student loan giant imposed interest rates on service members above the 6% allowed by law

Student lender Sallie Mae has reached a $60m settlement with the Justice Department to resolve allegations that it charged members of the military excessive interest rates on their student loans, the federal government announced Tuesday.

The deal settles a government lawsuit that asserted the student loan giant violated the rights of service members by imposing interest rates above the 6% permitted by federal law and by improperly seeking default judgments against them. Separately, the Federal Deposit Insurance Corporation announced a settlement of $30m in restitution arising from allegations that the company maximized consumer late fee charges, as well as $6.6m in civil penalties.

The lawsuit was the Justice Department’s first against owners and servicers of student loans for violating rights of service members. The settlement has been filed in federal court in Delaware and is awaiting a judge’s approval.

From the New York Times, business as usual:

Citigroup Says It Has Fired 12 in Mexico Over Fraud

Citigroup disclosed on Wednesday that it had fired a total of 12 employees in Mexico, including some senior executives, in connection with a $400 million fraud involving a Mexican oil services company.

In an internal memorandum to Citigroup employees, the bank’s chief executive, Michael L. Corbat, disclosed the terminations of the employees, including several managing directors, two of whom were business heads at the bank’s Banamex unit.

“Additionally, before our investigation concludes, we expect that several other employees, both inside and outside of Mexico, may receive forms of disciplinary action as well,” Mr. Corbat said in the memo.

From the Guardian, more business as usual:

Banks return to risky business: lax standards and subprime loans

  • Big banks like JP Morgan have rewired troubling, familiar tactics as they scrounge for profit in a difficult market

With business lending sluggish and mortgage lending slumping, Wells Fargo has decided it can cut those credit standards. Last month, it raised eyebrows by cutting the minimum credit score required to qualify for an FHA mortgage. It’s also making a big push into another area of lending notorious for poor lending standards: auto loans. Forget subprime mortgages; by the end of 2013, Wells was the second-biggest subprime auto lender in the country.

At least we’re all alert to the risks tied to lending, thanks to the vivid memories of 2008. The other side of the banking business is how they manage their deposits, and the quest to replace missing profits from this part of the enterprise is much less obvious to the casual observer. Nonetheless, analyst Mike Mayo says it’s this that keeps him awake at night far more often than worrying about stupid lending practices. “We haven’t had enough loan growth yet to cause a big problem.”

Specifically, Mayo frets that bankers are too complacent about whether depositors will stick around in a rising interest rate environment – and how much they’ll have to pay out in interest rates to hang on to those deposits. Then, too, there’s the question of what the banks are doing with all those deposits in the meantime.

From the Guardian again, the elite indulges:

Christie’s racks up $745m in one night – and the bubble keeps inflating

This week’s mega-auctions are once again reaching obscenely high prices, with a Barnett Newman selling for $84.2m and a Bacon triptych close to that. Why is there no sign of a crash?

Christie’s evening sale racked up a wacky, near-incomprehensible $745m, the highest total in history for a single sale – smashing past the house’s own high estimate of $500m, and beating November’s $691.6m sale, whose own Bacon, Three Studies of Lucian Freud, set a record (in nominal terms) for the priciest painting ever. The sale established new record prices for 10 artists, including Newman, Alexander Calder, and Joan Mitchell – who became the most expensive woman at auction for a messy blue abstraction from 1960.

Boggling enough on its own, the $744m sale came just a day after the end of Frieze New York, where untold millions changed hands, and on the heels of Christie’s own warm-up auction highlighting the “gritty, underbelly-esque side of contemporary art,” a rather ludicrous phrase to describe $134.6m worth of safe, predictable painting and sculpture. And collectors are set to do it all again Wednesday, when Christie’s rival Sotheby’s mounts its own evening sale.

“We are not in a bubble,” Christie’s CEO Steven Murphy insisted after the sale on Monday. To which the correct response is the one Mandy Rice-Davies gave during the Profumo scandal: “He would, wouldn’t he?” All the same, here are four theories on why the bubble keeps inflating, and why it may be a while before it bursts.

From the Los Angeles Times, a light frost in Hades?:

Howard Jarvis group won’t oppose bill to close Prop. 13 loophole

The staunchest defender of California’s politically untouchable property-tax initiative, Proposition 13, has tacitly approved a bid to change the landmark law for the first time since voters passed it 36 years ago.

The Howard Jarvis Taxpayers Assn., the anti-tax group named for the champion of the 1978 measure, dropped its opposition to a bill that would clamp down on companies avoiding higher property taxes when they buy commercial real estate by using a corporate ownership maneuver.

“I think that the withdrawal of our opposition, at least for now, suggests that we don’t see this as a direct threat to Prop. 13,” said Jon Coupal, president of the Jarvis group, whose crusade for the law sparked a nationwide tax revolt.

From BBC News, a story to shake you up:

Water extraction for human use boosts California quakes

Extracting water for human activities is increasing the number of small earthquakes being triggered in California.

A new study suggests that the heavy use of ground water for pumping and irrigation is causing mountains to lift and valleys to subside.

The scientists say this depletion of the water is increasing seismic activity along the San Andreas fault.

Another California water story, this time from the East Bay Express, reporting on Governor Jerry Brown’s Bay Delta Conservation Plan [BDCP]:

The Water Tunnel Boondoggle

  • Experts say the eye-popping costs of Governor Brown’s plan to build two giant water tunnels far outweigh the financial benefits. And taxpayers may be left holding the bag.

The project — along with the costs of mitigating the damage wrought by it — also promises to be hugely expensive. Two water agencies — the Westlands Water District, which services about seven hundred farms in a vast strip of desert in the western San Joaquin Valley, and the Metropolitan Water District, which supplies 19 million Southern Californians with water — plan to cover the majority of the costs of the tunnels, an estimated $15 billion, along with any economic damage they cause to the Delta.

But even as the project’s public comment period draws to a close next month, the state has yet to develop a clear financial plan for the tunnels. Moreover, the relatively few financial facts that do exist are hotly contested. The Department of Water Resources, for example, often states that the entire plan will cost a total of $25 billion, yet many economists think that, when interest on the bonds is factored in, the true figure will run closer to $70 billion.

In terms of benefits, state officials say the tunnels will generate an overall net gain of roughly $5 billion for California’s economy. But other water experts contend the plan could actually result in an annual net loss of about $100 million a year for water contractors backing the project.

From the Los Angeles Times, more ominous signs of a deadly summer to come in the Golden State as a record drought continues:

San Diego County fires: ‘It’s like a scene from Armageddon’

Brush fires broke out in more than half a dozen spots in northern San Diego County and spread at a dangerous pace as hot, dry, erratic winds, backed by record temperatures, raked Southern California for a second day Wednesday.

The fires forced evacuations of schools, businesses, homes, a mobile-home park and Cal State San Marcos, along with causing massive traffic jams and stretching firefighting resources almost to the breaking point.

The most destructive of the blazes was the Poinsettia fire in Carlsbad, which burned several hundred acres, hopscotching between pricey neighborhoods near brushy canyons.

And another faint hope for reform from within via the Guardian:

Google investors press for code of conduct on tax

Proposal by group of activist investors will be voted on at annual shareholder meeting and is opposed by Google board

A group of activist investors are calling on other Google shareholders to press the company to adopt a code of conduct on tax that would bring its corporate structures back in line with its “Don’t be evil” motto.

“A set of principles to address misalignments between Google’s tax strategies and its commitments to employees, communities, shareholders and the environment would help protect long-term value,” they argue in a proposal to be voted on at Google’s annual shareholder meeting on Wednesday.

The proposal has been made by Domini Social Equity Fund, which has close to $1bn of assets, and five other investors in the internet firm. It is opposed by the Google chairman, Eric Schmidt, and his board.

From the Register, surrendering to the corporate tracking imperative online:

Mozilla agrees to add DRM support to Firefox – under protest

  • ‘We don’t like it, but we have to use it’

Mozilla has announced that it will add Encrypted Media Extensions (EME) for digital rights management into a future build of Firefox, even if the organization disagrees with the technology on principle.

The World Wide Web Consortium (W3C) is to add EME into the specifications for HTML5 at the behest of Microsoft, Google, and Netflix. Sir Tim Berners-Lee supports the move, but Mozilla had been objecting to the plans as technically unnecessary. However, it has decided to cave.

“We have come to the point where Mozilla not implementing the W3C EME specification means that Firefox users have to switch to other browsers to watch content restricted by DRM ,” said Chief Technology Officer Andreas Gal.

Opening shots from an academic battle from USA TODAY:

For-profit colleges, student advocates lobby Obama

As the Obama administration prepares to establish new rules governing for-profit colleges later this year, student advocates and the career college industry are waging a fierce battle to shape the coming regulations.

Stakeholders on both sides of the debate are ramping up their push on the administration just as the public comment period on a proposed “gainful employment” regulation is set to close May 26.

Under the proposal that the administration unveiled in March, colleges would have to demonstrate that graduates’ debt load on average does not exceed 30% of their discretionary earnings or 12% of their total earnings.

And another national shame, reported by former Secretary of Labor Robert Reich in the UC Berkeley Blog:

How the right wing is killing women

According to a report released last week in the widely-respected health research journal, The Lancet, the United States now ranks 60th out of 180 countries on maternal deaths occurring during pregnancy and childbirth.

To put it bluntly, for every 100,000 births in America last year, 18.5 women died. That’s compared to 8.2 women who died during pregnancy and birth in Canada, 6.1 in Britain, and only 2.4 in Iceland.

A woman giving birth in America is more than twice as likely to die as a woman in Saudi Arabia or China.

And another national shame, via The Contributor Network:

REPORT: Children as Young as 7 Working in US Tobacco Fields

  • An international rights group is pushing the federal government and the tobacco industry to take further steps to protect children working on U.S. tobacco farms.

A report released Wednesday by Human Rights Watch claims that children as young as 7 are sometimes working long hours in fields harvesting nicotine- and pesticide-laced tobacco leaves under sometimes hazardous conditions. Most of what the group documented is legal, but it wants cigarette makers to push for safety on farms from which they buy tobacco.

Human Rights Watch details findings from interviews with more than 140 children working on farms in North Carolina, Kentucky, Tennessee and Virginia, where a majority of the country’s tobacco is grown.

New enterprise struggles from the New York Times:

The Bud Light-ification of Bud

There’s a pressing economic reason for the pot industry to get better if it is to survive, aside from its formidable legal challenges. The plant is relatively cheap and easy to grow, and not complicated to process either. Left to the whims of the open market — meaning ignoring taxes and regulations — the price of a joint could plummet to the price of a tea bag or a packet of sugar. So how will investors help the market mature while still making money?

The market for marijuana is nothing like the market for corn or wine or tobacco — at least not yet — and the reasons start in the ground: Marijuana growing and processing is downright bush-league compared to modern American agribusiness. Much of the pot produced in the United States still comes from illegal or semi-legal grow sites, even given the surge of production and processing in states with recreational or medicinal laws. And strains remain understudied and underanalyzed, compared with the wheat in your cereal or even the marigolds in your garden.

The inefficiencies continue to pile up after the harvest. Marijuana has to be cured, then trimmed, before it is sold, and much of this work is still done by hand. Workers use scissors to cut away tough outer leaves and expose the smokable part of the plant. It’s a labor-intensive process, the kind that in other instances is completed by a machine, like a thresher or a cotton gin.

And from the Japan Daily Press, still time to resist:

U.S. sees no conclusion to Trans-Pacific Partnership negotiations anytime soon

The stalemate is still on as the nations included in the Trans-Pacific Partnership are not expecting a conclusion to be met in the negotiations anytime soon. With a ministerial meeting happening in Singapore this month, members of what will be the world’s biggest free trade deal are yet to finalize the deal as both Japan and the United States, both key economies in the deal, failed to reach a conclusion on the negotiations last month.

While many expected progress to happen when US President Barack Obama himself went to Japan last month to discuss this, many were disappointed to learn that further talks are needed to come to a final agreement. The deadlock remains to be because of Japan’s refusal to give up tariffs on key products such as farming produce and automobiles, both the bread and butter of the Asian nation. This has affected widely the negotiations of the 12-nations included in the TPP as they wait for the final outcome of the talks between Japan and the U.S. The countries included in the TPP will meet in Singapore this week to give updates regarding other talks. They are expected to outline other details including regulations on labor, intellectual property and the environment as soon as the deal has been ironed out.

For our first European story, a plaintive pontifical plea from ANSA:

Pope condemns ‘massacre’ of migrants at sea as ‘shameful’

  • Francis asks for prayers for people fleeing homelands by boat

Pope Francis on Wednesday condemned the “massacre” of desperate migrants who are killed in boat disasters on the Mediterranean Sea as they flee their homelands for a new life in Europe. During his weekly general audience, the pope said it was “shameful” that thousands of migrants are killed on the seas between North African and the southern borders of Italy.

Shortly before he spoke, police in southern Italy said they had arrested two alleged human smugglers who authorities say deliberately caused a boat carrying as many as 400 migrants to sink off the coast of Libya Monday to induce an Italian sea rescue.

So far, 17 have been confirmed dead and more than 200 rescued but as many as 200 more are still missing.

Next, via EUbusiness, another hint of things to come:

Eurozone industrial output slips back in March: Eurostat

Eurozone industrial output fell in March, official data showed on Wednesday, consistent with recent data showing the economic recovery to be patchy so far.

Industrial output in the 18-nation eurozone dropped 0.3 percent in March compared with the figure for February when it gained 0.2 percent, the Eurostat statistics agency said.

Compared with March 2013, eurozone industrial output was down 0.1 percent, after posting a year-on-year gain of 1.7 percent in February.

From Europe Online, another form of resistance to the austerian imperative:

Brussels expects stronger resistance to austerity in next EU assembly

The European Commission believes that it will be harder to get the European Parliament to approve austerity legislation after this month’s elections, internal documents seen by dpa showed Wednesday.

The European Union’s executive arm acknowledged that based on polling trends, the staunchest backers of recent budget discipline reforms, the conservative European People’s Party (EPP) and Alliance of Liberals and Democrats for Europe (ALDE), will be “substantially weakened.”

“Some of the winning coalitions” that supported reforms in the outgoing Parliament, which had “the EPP and ALDE at their core,” are likely to “no longer be sufficient to reach a majority” in the next EU assembly, according to an analysis by the commission’s economic and financial department.

EurActiv raises an objection:

Norway accuses Apple of breaching EU consumer law

Apple’s iCloud service violates European law by giving itself the right to change its terms and conditions at any time, without notifying its customers, according to a complaint lodged 13 May by the Norwegian Consumer Council.

The council, a government agency, earlier published a study accusing Apple iCloud’s terms of service of violating consumer rights and privacy before the complaint to Norway’s Consumer Ombudsman.

The unfair practice complaint is based on the EU’s directive on unfair terms in consumer contracts. Because people often store important information in the cloud, such as documents and photos, it is particularly important they understand the contract, the council said.

On to Britain and xenophobic fears fail to materialize, via Sky News:

East European Migrant Influx Fails To Emerge

The number of migrants from Romania and Bulgaria has fallen since border controls were lifted but rose over the long-term.

The number of Romanians and Bulgarians working in the UK has fallen by 4,000 since transitional controls on immigration were lifted on January 1.

Figures from the Office of National Statistics show 140,000 people born in one of the two countries were employed between January and March this year.

That is down from 144,000 between October and December, suggesting concerns about mass immigration following the New Year have been unfounded.

And some positive numbers from BBC News:

UK unemployment rate falls to five-year low

The number of people out of work in the UK fell by 133,000 to a fresh five-year low of 2.2 million in the three months to March, official figures show.

The jobless rate also fell to a five-year low of 6.8%, the Office for National Statistics (ONS) said.

The number of people in work rose to 30.43 million, the highest since records began in 1971, helped by a rise in self-employment. Average earnings in the three months to March were up 1.7% from a year earlier.

But other numbers hint of another reality, via the Independent:

Anger as Employment Minister Esther McVey denies food bank use is linked to welfare reforms

Charities and politicians have reacted with anger to a claim by the Employment Minister that the dramatic rise in the number of people using food banks has nothing to do with the Government’s welfare reforms.

In a letter to the Scottish government, Esther McVey said “the rise in food banks predates most of the welfare reforms this Government has put in place”, adding that there was “no robust evidence linking food bank usage to welfare reform”.

Figures from the Trussell Trust, Britain’s biggest food bank provider, have shown that demand has increased by more than 300 per cent in the past year.

Sky News hints at a bankster victory:

Banks Warn Regulator On ‘Illegal’ Bonus Rules

Bank of England proposals to toughen bank bonus rules could be legally unenforceable, a document obtained by Sky News warns.

New rules that would force bankers to wait more than a decade to get their hands on bonuses would breach “the principle of natural justice” and leave lenders exposed to costly legal challenges, a trade body has warned.

In a document obtained by Sky News, the British Bankers’ Association (BBA) argued that plans to apply clawback provisions retrospectively would be illegal in Brazil, France, Germany and Mexico, countries in which UK-based lenders such as HSBC have a substantial presence.

The BoE’s proposals would force banks to reclaim variable compensation from senior employees for up to six years after it has been handed over and spent.

On to Norway and trepidation from TheLocal.no:

Norway slashes growth forecast on oil slowdown

Norway’s government on Wednesday slashed its growth forecast for this year, citing a slowdown in spending by the key oil sector in the Nordic country.

In a revised budget the government said the Norwegian economy is now forecast to grow by 1.9 percent in 2014, compared to the 2.5-percent increase expected in the original budget submitted last November.

This forecast concerns the country’s “mainland” GDP, which leaves out fossil fuels and maritime transport and is preferred as an indicator in Norway
since it excludes the strong cyclical variations related to oil, one of the country’s main exports.

However the purchase by the oil sector of goods and services is included in the country’s “mainland” GDP calculation, and the finance ministry expects this to stabilise then decrease.

Hypocritical criticism of the day award goes to. . .Well, you get the idea. And imagine if the U.S. had the same priorities as one of the happiest nations on earth. From TheLocal.se:

‘Swedes prioritize welfare and jobs above security’

No one doubts the Swedes’ ability to fight, but they do doubt Nato-ambivalent Sweden’s commitment to helping its neighbours, argues former US defence attaché to Sweden Bruce Acker.

In the wake of Russian annexation of Crimea, the Swedish defense debate has intensified over the nature of its security structures and partnerships. The Swedish solidarity declaration of 2009 is frequently criticized for being unresourced and therefore weak:

On to Austria and a slowdown from TheLocal.at:

Verbund shuts five power plants

Verbund, Austria’s leading electricity company, is mothballing five power stations to cut costs.

The company said it would temporarily decommission several combined cycle gas-fired power plants in Austria and France, including the 848-megawatt Mellach power station that was commissioned only three years ago.

Additionally, a coal-fired power plant in Dürnrohr and an oil-fueled plant in Styria will be closed, the company added.

The reason for the closures is the “massive disruption in the European electricity market” and “sector-wide economic pressures”, Verbund said. It hopes the restructuring will lead to “lasting economic improvements”.

TheLocal.at again, with a shortfall:

Austrian army ‘going broke’

The Austrian army is in serious financial trouble – so much so that regiments can’t afford fuel and soldiers are forced to march on foot.

Defence Minister Gerald Klug (SPÖ) has said that with its current budget the army “is no longer financially viable”.

His staff have done an analysis of the army’s current saving plan and found that by autumn it won’t even be able to afford its fuel bill.

And a good use for a house linked to a murderous xenophobe extraordinaire from TheLocal.at:

Hitler’s house to become migrant centre?

A long-running debate over the future of the house where Hitler was born finally appears set to be resolved.

The Renaissance-era structure, located near the central square of the picturesque town of Braunau in Upper Austria, is considered prime real estate.

At a recent ‘Birthplace Summit’, held at the Interior Ministry in early May, the house’s current owner and representatives from Braunau met with Austria’s Interior Ministry to discuss the fate of the controversial building.

For decades however, the shadow of Adolf Hitler – its most infamous son – has hung over the former guest house, creating a constant headache for Braunau’s administration.

On to Spain with thinkSPAIN and political provocation:

Mock ‘abortion package tour’ travel agency launched in protest over Spanish law reform

CAMPAIGNERS fighting the proposed restrictions on abortion announced by Spain’s minister of justice have set up a spoof travel agency offering trips to Europe for women wishing to terminate a pregnancy.

Dubbed ‘Abortion Travel – the agency that shouldn’t exist’, the pretend online ‘company’ offers packages to London, Paris and Berlin ranging from 1,940 euros to 2,620 euros.

Its organisers even give women advice relating to where to travel to in Europe depending upon how far gone their pregnancy is and the national law relating to their stage of gestation.

TheLocal.es covers a dismal ratio:

Spain: One vacancy for every 110 jobseekers

Spain had only one job opening for every 110 unemployed people in the final three months of 2013, the second worst rate in the European Union, a new study released on Wednesday shows.

Before Spain’s economic crisis kicked off in 2007, this rate was one job opening for every 17.5 jobseekers, the latest labour market bulletin by job agency Asempleo and financial consultants Afi shows.

Only Cyprus had a worse ratio: there the ratio was one job per 154 people searching for work.

The lack of job openings in Spain — where the official unemployment rate is 25.93 percent — is also in stark contrast with the EU average for the final quarter of of 2013. That figure was 12.3 unemployed people for each job on offer.

Italy next and a Bunga Buna bloviation from ANSA:

Berlusconi says accord with Renzi ‘useless’

  • Forza Italia leader says party will vote as it sees fit

Ex-premier Silvio Berlusconi said Wednesday that continuing an accord with Premier Matteo Renzi on government reforms would be “useless”. Instead of advance agreements, he said, his opposition centre-right Forza Italia (FI) party would decide for itself how to vote on each reform measure.

“It is useless to make arrangements before,” any vote, Berlusconi said in a television interview with Rai.

“We expect to see the reforms in Parliament (and) if we believe they are the best, we will vote for them,” and otherwise, FI will vote against the measure, he added.

TheLocal.it asks for a helping hand:

‘EU officials asked US for help to oust Berlusconi’

EU officials asked the US government for help to oust Silvio Berlusconi from the Italian premiership at the height of the economic crisis in 2011, a former advisor to US President Barack Obama has claimed.

Tim Geithner, former US treasury secretary, said that he refused to cooperate in a plot against the then Italian prime minister in the autumn of 2011. “European officials contacted us with a plot to find a way of forcing the Italian Premier Berlusconi to stand down,” Geithner was quoted in La Stampa as saying in his new book – Stress Test: Reflections on Financial Crises.

The EU officials wanted their US counterparts to refuse to back an Italian rescue package from the International Monetary Fund (IMF) unless Berlusconi resigned, Geithner alleged. The former treasury secretary claimed that he refused to go along with the plot, telling the Europeans “we cannot have blood on our hands.”

Blissful high level ignorance from ANSA:

Napolitano didn’t participate in Berlusconi ‘plot’ meetings

  • Geithner book feeds speculation Berlusconi was felled in 2011

President Giorgio Napolitano said in a statement Wednesday that he did not participate in any of the international meetings in which European officials allegedly plotted to bring down Silvio Berlusconi’s government in 2011.

Rumours that the third Berlusconi’s government was scuppered by a conspiracy were fueled this week by a new book by former US Treasury secretary Timothy Geithner. The former Treasury secretary wrote that in 2011, at a G-20 meeting, Europeans were pushing the White House to get involved in pressuring Berlusconi out of office, as Italy risked a Greek-style financial meltdown with the spread between Italian 10-year bonds and their German counterpart ballooning to over 500 points and yields above 7%.

Napolitano was instrumental in engineering the emergency technocrat administration led by ex-premier Mario Monti that replaced Berlusconi’s administration in November 2011.

After the jump, the latest anxieties from Greece, More Ukrainian turmoil and Russian retaliation [including a lethal blow the U.S. space program], a Georgian courtship, Turkish outrage, agrofuel and presidential woes in Latin America, Australian austerity run amok, a blow for GMOs in Pakistan, Thai turmoil, Southern Korean economic woes, bubble-plugging measures, corruption and economic and corporate imperialism in China, economic winners and losers in China, Trans-Pacific Partnership wheeling and dealing, MERS warnings, historical tragedy, and the latest chapter of Fukushimapocalypse Now! . . .
Continue reading

Map of the day: European gay [in]tolerance


Via EUobserver, results of a new survey of European national attitudes towards non-heterosexual relationships:

BLOG INtolerance

Headlines: eCons, pols, hate, polluters. . .


Today’s collection of headlines from the worlds of politics, economics, and the environment — plus the latest episode of Fukushimapocalypse Now! Beguns with a frightener from The Observer:

Why global recovery could depend on China’s taste for luxury

  • Attitudes are changing in China, but western export hopes are pinned on a swelling middle class embracing its inner consumer

China’s looming coronation as the world’s largest economy, years ahead of schedule, is probably not particularly surprising in one sleepy corner of Oxfordshire. Around half of the international visitors who flock to Bicester retail village are Chinese nationals, making the one-hour train trip from London, or using the fleet of special coaches that head there each day – to stock up on luxury goods.

A World Bank-backed report has declared that the country’s national currency, the yuan, will go further than previously thought in the hands of the Chinese consumer and that this supercharged purchasing power will push the world’s second-largest economy ahead of the US this year.

This could be the century of the Chinese consumer, now a figure of central importance for luxury goods companies including some of the biggest retail names in Britain.

Closer to home with disorder in the courts from the Los Angeles Times:

Cutbacks in California court system produce long lines, short tempers

California Chief Justice Tani Cantil-Sakauye remembers the moment she learned that the Kings County Superior Court had resorted to holding a garage sale to raise money.

“That was a day of extreme humiliation and embarrassment to me,” Cantil-Sakauye said.

During her three years as chief justice, recession-driven cutbacks in California’s huge court system have produced long lines and short tempers at courthouses throughout the state. Civil cases are facing growing delays in getting to trial, and court closures have forced residents in some counties to drive several hours for an appearance.

TechCrunch covers hypocrisy from Obama appointees:

FCC Said To Tweak Proposed Net Neutrality Rules, But Preserve Pay-For-Speed

Call it a non-fix: According to the Wall Street Journal, FCC Chairman Tom Wheeler has tweaked the language of his proposed rules to allow content providers to pay for faster delivery of their content across an ISPs network.

He has not recanted that proposal. Instead, according to the Journal, “the new language by FCC Chairman Tom Wheeler to be circulated as early as Monday is an attempt to address criticism of his proposal unveiled last month that would ban broadband providers from blocking or slowing down websites,” but would still let companies that are content-intensive “pay [ISPs] for faster delivery of Web content to customers.”

Doesn’t that feel precisely the same as the plan before? Yes, but, this time, the Journal continues, we’re going to have “language that would make clear that the FCC will scrutinize the deals to make sure that the broadband providers don’t unfairly put nonpaying companies’ content at a disadvantage.” So, the paid advantage would be “fair.” Defining that isn’t going to be easy.

Heading north of the border, Canada’s effort to sway American legislators via the Toronto Globe and Mail:

Canada’s $207,000 oil sands ad: Putting a price on deception

The ad in The New Yorker is pretty, if not quite arresting. The full-page photo on the inside back cover – prime real estate in the United States’ leading upmarket magazine – features a pristine river meandering through a lush mountain valley, untouched by humanity. It is not a tourism ad. It is designed to convince influential Americans that the Keystone XL pipeline is environmentally safe, even desirable.

What is clever about the ad is not the photo; it is the headline and the succinct lines of copy beneath it. They are slick pieces of propaganda – misleading without being outright lies. Of course, advertising is all about propaganda. But this ad is unconscionable because you, the Canadian taxpayer, paid for it. The rate for a full-page ad in that location, according to Condé Nast, publisher of The New Yorker, is $207,000 (U.S.).

The ad appeared in the April 14 issue and was sponsored by GoWithCanada.ca, the federal government site that is trying to convince the skeptical that the Alberta oil sands – known as the tar sands to non-Canadians – and the export pipelines that would allow the megaproject to thrive for decades are a “secure, responsible source of energy for the global market” (“Keystone” does not appear in the ad).

On to Europe and another hint of darker days to come from the Guardian:

Mario Draghi drops hint of imminent move to tackle risk of deflation

  • European Central Bank boss signals that a move could come once his economists produce forecasts for inflation in June

European Central Bank boss Mario Draghi has dropped his broadest hint yet of imminent moves to head off deflation when he said policy makers at the bank were “comfortable” about action in early June.

Upward pressure on the euro eased and yields on government bonds fell after the ECB president expressed concern that weak growth and the possible knock-on effects from the Ukraine could derail the eurozone’s fragile recovery.

Although Draghi announced no change in policy following the meeting of the ECB’s general council in Brussels, he signalled that a move could come once his in-house economists produce updated forecasts for inflation in the first few days of next month.

From Sky News, elite-a-palooza:

Billionaire Britain: New Nation Of Super-Rich

This year’s Sunday Times Rich List reveals Britain has more billionaires per head of population than any other country.

More than 100 billionaires are now living in Britain – the first time the milestone has been reached.

According to this year’s Sunday Times Rich List, 104 billionaires with a combined wealth of more than £300bn are now based in the UK – more than triple the number from a decade ago.

Britain has more billionaires per head of population than any other country, while London has more than any other city with 72.

News Corp Australia covers a British plutocrat behaving badly:

British millionaire Shoja Shojai ‘fathered seven children with harem of women he held against their will in Spain’

A BRITISH millionaire accused of fathering seven children with a harem of aspiring models he kept against their will has been arrested.

Shoja Shojai, 56, allegedly met many of the women in London and convinced them to move to his mansion in Spain, telling them he was an oil tycoon who was friends with Barack Obama.

Police were called to the luxurious Arabic-style mansion in the hills above Marbella when one of the women filed a domestic violence claim against him, T he Telegraph reports.

Nine of the women, mostly in their 20s, who live at the mansion claim Shojai lured them to Spain under false pretences, abusing them and forcing them to cover the 6500 pound ($11,6700) monthly rent.

From the Guardian more of London’s billionaire attracting power:

London property empire amassed by controversial German landlord

  • Henning Conle, who has reputation for shabby buildings and disgruntled tenants in Germany, has snapped up almost £2bn of prime London real estate

A German landlord with a reputation for shabby buildings and disgruntled tenants has emerged as one of the biggest investors in London property in recent years.

Henning Conle, 70, has snapped up almost £2bn of prime real estate, including a series of historic buildings in central London, raising inevitable questions about where he got his money from.

The portfolio includes buildings that house department stores such as Liberty and House of Fraser, the Kensington Roof Gardens complex, the London offices of Manchester United and the art deco Shell Mex House on the Strand.

While Sky News covers more austerian casualties:

‘Overworked’ Doctors Fear Missing Illnesses

  • More than eight out of 10 family doctors say they worry about failing to spot serious conditions because of their workloads.

More than eight out of 10 GPs have said they fear missing serious illnesses in patients because they are so overworked, according to a survey.

Nine out of 10 family doctors, meanwhile, feel their general practices do not have sufficient resources to provide high quality care.

The survey was carried out by the Royal College of General Practitioners, the professional membership body for family doctors.

Off to Scandinavia with the Christian Science Monitor:

Nordic cuddly capitalism: Utopia, no. But a global model for equity

The cuddly capitalism of the Nordic nations provides an economic equity that makes a middle class lifestyle the norm, where the sharp edges of worry about the cost of health care, elder care, child care, and education simply don’t exist. But is it a sustainable model for anyone but the pragmatic North?

And these countries have pioneered public policies, the effects of which – if not the tax burden – are the envy of the common man worldwide: from universal preschool and paternity leave to vocational training schools and voucher programs for private schools.

Some of it is hype, which naysayers love to shoot down, as in the recent viral Guardian article that spelled out “the grim truth behind the ‘Scandinavian miracle.’ “ Much of Nordic success has happened because the countries are small, nimble, and, until recently, homogenous. But problems do loom on the horizon, with growing inequality and anti-immigration sentiment, stubborn youth unemployment, and education scores dropping in Sweden and one of the world’s star education performers, Finland.

But by so many measures, the Nordic countries simply work well, sustaining the security of a welfare state while being unabashed capitalists and innovators, adapting to change, and doing so with a long tradition of pragmatic consensus. The region tops charts on equality, transparency, and innovation.

New Europe covers risks:

Norway’s economic risks predicted by OECD

Norway’s economy faces two risk factors that threaten its overall development, warned the OECD in its latest Economic Outlook which was released on May 6.

These two risk factors, according to the Organisation for Economic Co-operation and Development, are the price of oil and the real estate market.

“The ripple effects from a weak oil sector may be greater than expected,” the OECD concludes in its report, which also notes that the country is still volatile when it comes to changing oil prices.

On to France and another green movement from RT:

Hundreds march across France to legalize cannabis

Hundreds of protesters all over France have been rallying demonstrating in favor of legalizing cannabis. The event coincides with the so-called world march for the legalization of the drug.

In Paris, protesters gathered on Bastille Square on Saturday, after Cannabis Without Frontiers, an organization struggling to legalize marijuana in the country, called for the rally.

The crowd chanted “Marie-Jeanne!” in a reference to the nickname for marijuana in France. Many of the protesters held joints or leaves of marijuana, dancing to reggae music.

From TheLocal.fr, the Great Game continues:

Hollande bids to boost Caucasus ties

French President Francois Hollande starts a three-day visit to the South Caucasus on Sunday as he seeks to bolster European ties on Russia’s southern doorstep amid the crisis in Ukraine.

French President Francois Hollande starts a three-day visit to the South Caucasus on Sunday as he seeks to bolster European ties on Russia’s southern doorstep amid the crisis in Ukraine.

Hollande was due to arrive in the Azerbaijani capital Baku around 6:00 pm Sunday, on the same day separatists in eastern Ukraine held referendums on breaking away from the country.

And the London Telegraph covers the bankster blues:

Cinema producer warned over ‘Dominique Strauss-Kahn film’

  • French producer of film closely inspired by downfall of IMF boss warned that Dominique Strauss-Kahn’s wife will “destroy his life”

The producer of a film which appears to chart the spectacular downfall of Dominique Strauss-Kahn has said he was warned that the estranged wife of the former IMF chief would “destroy his life”.

The accusation will heighten controversy over the film Welcome to New York, which premieres next weekend at Cannes despite being shunned by festival organisers.

Producer Vincent Maraval also repeated his claims that the French political and media “elite” had done their best to prevent the film, which has Gérard Depardieu in the lead role, being made

On to Lisbon and moderately good news from the Portugal News:

Unemployment slightly down

Portugal’s unemployment rate closed the first quarter on 15.1%, down 2.4% on the same period in 2013 and down 0.2% on the previous quarter according to figures released by the National Institute of Statistics.

The institute reported some 788,100 persons were without employment and down by 138,700 and 19,900 people on annual and quarterly bases respectively with the former figure amounting to a 15% drop but also accounting for those who have left the workforce in the meanwhile.

The figures show that there was a total of 4.427 million people in employment, an annualised rise of 1.7% but down 0.9% on the final quarter of 2013.

Italy next, and a populist pander from EUbusiness:

Italy’s Grillo makes Nazi jibe against Schulz

Italian anti-establishment firebrand Beppe Grillo on Sunday likened European Commission presidency candidate Martin Schulz to a Nazi comic book character after Schulz compared him to Stalin and Hugo Chavez.

Grillo’s blog carried a photoshopped picture of Schulz as a Nazi whipping Italian Prime Minister Matteo Renzi and his post said that the European Parliament’s German president “has no shame in talking crap”.

Grillo said Silvio Berlusconi was “not completely wrong when he called him a kapo”, or concentration camp guard, recalling an infamous speech made by the then prime minister to the European Parliament in 2003.

Grillo called Schulz a “sturmtruppen” — a reference to a comic book series — and said he was a “krapo”, a combination of the word “kapo” and “crapun” — a dialect word meaning “big head” that was used to refer to Italian fascist dictator Benito Mussolini.

From BBC Sport, more overt racism, soccer-style:

AC Milan: Bananas thrown at players by Atalanta fans

AC Milan players had bananas thrown at them during a 2-1 defeat at Atalanta.

Guinea international Kevin Constant and Netherlands midfielder Nigel de Jong picked up two bananas thrown onto the pitch, while Milan players appeared to sarcastically applaud the home support.

Fans were warned the game would be suspended if there was a repeat.

“Whoever threw the banana on the pitch deserves to have a coconut thrown back at them,” Atalanta boss Stefano Colantuono told Gazzetta dello Sport.

“They’ve ruined what was a great afternoon.”

After the jump, good news for Greek neoNazis, electoral violence in the Ukraine, Brazilian angst, waiting for Chinese promises in Africa, Indian elections and hankering for U.S. fracking, Indonesian Shariah second thoughts, Thai troubles continue, economic warning signs from China, Japanese casino dreams, environmental woes, and the latest chapter of Fukushimapocalypse Now!. . . Continue reading

Guantanamo prison: A lawyer speaks out


From London Real, an interview with a retired U.S. Army major  and lawyer who served as defense counsel for detainees at America’s shameful prison located in Cuba because to escape scrutiny and the U.S. Constitution’s civil rights protections for prisoners.

Here’s his bio from The Globalist:

Todd E. Pierce retired as a major in the U.S. Army Judge Advocate General (JAG) Corps in November 2012.

His most recent assignment was defense counsel in the Office of Chief Defense Counsel, Office of Military Commissions. In the course of that assignment, he researched and reviewed the complete records of military commissions held during the Civil War and stored at the National Archives in Washington, D.C.

Mr. Pierce served on active and reserve duty as both a JAG Officer and a Non-Commissioned Officer, beginning as a Marine Corps Rifleman. He was commissioned as a Judge Advocate in 1996.

His previous military service included service with the 349th Psychological Operations Company and the 205th Infantry Brigade as a senior NCO. He served in the Gulf War in 1990-1991 with three campaign ribbons.

Mr. Pierce’s undergraduate degree is in history and social sciences, with an emphasis on the study of revolutionary movements, and their use of revolutionary violence in the form of guerrilla warfare and terrorism.

He contributed research to the Army-Air Force Center for Low Intensity Conflict during the 1980′s, culminating in organizing a major conference on low intensity conflict and terrorism in 1989.

With that, on with the video from London Real:

Todd Pierce – Guantanamo Bay | London Real

Program notes:

Todd Pierce knows a lot about the Guantanamo Detention Camp. As a Major with the U.S. Army Judge Advocate General Corp his job was to defend three of the detainees at Guantanamo Bay and considers indefinite detention a form of torture.

Todd is also a military historian and believes that George W. Bush’s famous quote “You are either with us or against us” made the USA a de factor Authoritarian government. He claims that Bush & Cheney turned to Civil War precedents to create military tribunals for trying alleged “terrorists.”

Furthermore he believes that Edward Snowden’s revelations of the restricted access to information by those who govern us severely restricts the way a fair society can function. He has unique insights on the problems of the NSA, unmanned drone strike policy, and the arcane law know as the Espionage Act of 1917.

Join me in welcoming Todd Pierce for a critically important episode of London Real.

H/T to Antiwar.com.

Chart of the day: Discrimination in academia


Dramatic evidence that discrimination is at work in the Groves of Academe comes from a study [PDF] by three academics, Katherine L. Milkman of Whrton, Dolly Chugh of NYU’s Stern School of Business, and Modupe Akinola of Columbia Business School on how academics at universities would respond to an email request for a meeting with a prospective student seeking advice.

The recipients were 6,500 professors at the nation’s top 250 schools.

The message was the same in all the emails, save for the ethnicity and gender of the supposed sender. Just who received answers was illuminating, and the results are graphed here with non-response rates [red] and response rates [black] in comparison with a supposed with mail.

Discrimination rates were lower at public compared to private institutions.

Click on the image to enlarge [and alarm]:

Microsoft Word - 30Mar2012_Manuscript_Final_QJE

Headlines: Pols, players, loans, lies, pollution


And, of course, Fukushimapocalypse Now!, including wordf that the nuclear waste dump used by Lawrence Livermore National Laboratory faces a closeure of two years or more.

From PBS NewsHour, our first item features the usual suspects:

Koch group plans to spend $125 million on midterms

Kochs plan to spend big: To the surprise of no one, Senate Majority Leader Harry Reid’s repeated attacks against Charles and David Koch have failed to dissuade the conservative billionaires from investing heavily in the 2014 midterm elections. Politico’s Ken Vogel reports that Americans for Prosperity, the main political arm of the Koch brothers, plans to spend more than $125 million “on an aggressive ground, air and data operation” to help boost conservative candidates. That sum would “exceed the total 2012 fundraising hauls of the Democratic Congressional Campaign Committee, National Republican Congressional Committee, Democratic Senatorial Campaign Committee or the National Republican Senatorial Committee,” Vogel writes. The $125 million projection comes after the Kochs’ political network raised more than $400 million trying to defeat President Barack Obama in 2012.

Aiming for the red-state Democrats in the South: This time their aim will be vulnerable Senate Democrats in red states such as Kay Hagan in North Carolina, Mark Pryor in Arkansas and Mary Landrieu in Louisiana. By the end of March AFP had already spent $7 million targeting Hagan. AFP has so far dropped more money than any other outside group on the right, and Friday’s headline signals that spending is only going to continue — and likely escalate — as the calendar moves closer to November.

Even before the election, they’ve already won one significant victory. From ABC News:

Wyoming is 1st state to reject science standards

  • Coal-producing state Wyoming declines new science standards with global warming components

Wyoming, the nation’s top coal-producing state, is the first to reject new K-12 science standards proposed by national education groups mainly because of global warming components.

The Wyoming Board of Education decided recently that the Next Generation Science Standards need more review after questions were raised about the treatment of man-made global warming.

Board President Ron Micheli said the review will look into whether “we can’t get some standards that are Wyoming standards and standards we all can be proud of.”

BBC News raises the heat:

Pressure mounts on FCC over net-neutrality changes

Pressure is mounting on the US Federal Communications Commission to delay or abandon plans to change the rules that govern how internet traffic is treated.

More than 50 venture capitalists have sent a letter expressing concerns about proposals to allow internet service providers (ISPs) to charge for prioritised network access. It comes a day after 100 technology companies signed a similar letter.

Two FCC commissioners are now calling for the 15 May vote to be delayed.

Whilst on the subject of neutrality, ponder this from Montclair SocioBlog:

Whose Speech, Whose Religion?

Does a justice’s view of the First Amendment’s “establishment clause” depend on which religion is being established?

The First Amendment doesn’t specify any religions as more or less establishable. It just says no establishment.

This week, five conservative justices on the Supreme Court voted to allow a town council in Greece, NY to open their meetings with Christian prayers. These referred to “our Christian faith,” Jesus Christ, and the Resurrection. The justices ruled that these Christian prayers were in perfect accord with the First Amendment.  Needless to say, the five justice majority was all Christian (Catholic in fact).  The two Jews and two other Catholics dissented. (The Court has no Protestants.)

The Washington Post politics:

Obama warns Democrats that midterms could imperil his agenda — and America

On the West Coast to raise millions of dollars for his party, President Obama spent the second half of this week preaching to rich supporters about why Democrats are better than Republicans. It sounded like a conventional stump speech in the windup to the midterm battle — including a rote apology to the first lady for running another campaign.

As he toured a series of mansions, Obama made the case that should Democrats fail to keep their hold on the Senate and win back the House, both his second-term priorities and the country’s future could be imperiled.

He described the public’s dissatisfaction with Washington as nearly at a tipping point, where working-class Americans see leaders as unresponsive to their most basic concerns. If that were to continue, he said, more middle-class Americans could dismiss the political process completely.

CNBC covers a political blunder featuring a company where Hillary Cklinton once served as a director:

Obama heads to Wal-Mart, triggers backlash

Calling it the right thing to do for America’s bottom line, President Barack Obama announced new steps Friday by companies, local governments and his own administration to deploy solar technology, showcasing steps to combat climate change that don’t require consent from a disinclined Congress.

Framed by rows of clothing and patio supplies at a Wal-Mart in California, Obama said more than 300 companies and state and local governments have pledged to use solar energy

>snip<

The White House said it chose Wal-Mart because the company has committed to doubling the number of solar energy projects at its stores, Sam’s Clubs and distribution centers.

But in choosing the giant retailer as the backdrop for his announcement, Obama triggered a backlash from labor unions and pay equity advocates who say low wages paid by Wal-Mart fly in the face of Obama’s vaunted push on pay equity.

“What numbskull in the White House arranged this?” former Labor Secretary Robert Reich, who served in the Bill Clinton administration, said on Facebook.

And from Reuters, more about the company in question:

Wal-Mart should face lawsuit over alleged Mexico bribery: U.S. judge

Wal-Mart Stores Inc should face a U.S. lawsuit accusing it of defrauding shareholders by concealing suspected corruption at its Mexico operations, after learning that a damaging media report detailing alleged bribery was being prepared, a federal judge said.

U.S. Magistrate Judge Erin Setser in Fayetteville, Arkansas, on Thursday recommended denying Wal-Mart’s request to dismiss the lawsuit led by a Michigan pension fund against the world’s largest retailer and former Chief Executive Officer Mike Duke.

A Wal-Mart spokesman said the company disagrees with Setser’s recommendation, which is subject to review by U.S. District Judge Susan Hickey. District judges are not bound by magistrate judges’ recommendations but often follow them.

BBC News covers more corporate conundra:

US politicians raise questions over Pfizer bid

Pfizer’s bid for AstraZeneca is being questioned by US politicians.

The governors of the states of Maryland and Delaware have written to Pfizer’s boss saying they are “very concerned” about the deal and the possibilities of job losses in their states.

Meanwhile senators Carl Levin and Roy Wyden are looking to close the tax loophole that Pfizer plans to use. One of the attractions of the deal to Pfizer is that it could significantly lower the company’s tax bill.

While MintPress News catches one of the more loathesome outcomes of Proposition 13:

Calif. City Boosts Revenue By Detaining And Deporting Immigrants

Despite protests and calls from activists, an immigrant-dominant California city opts to continue its controversial relationship with Immigration and Customs Enforcement.

Santa Ana, Calif., welcomed its first Latino police chief on Tuesday during a City Council meeting, then the city with an 80-percent Latino population opted to increase its revenue by deporting undocumented immigrants.

As MintPress News previously reported, since 2006, Santa Ana officials have allowed U.S. Immigration and Customs Enforcement officials to detain those suspected of being undocumented immigrants at the Santa Ana City Jail for a fee of about $82 per day. Despite protests in recent years, city officials have not only expressed an interest in continuing their financial relationship with ICE, but also hope to increase the immigrant detainee fee to $110.

The controversial detention practice has been criticized by immigrants rights activists for years, as individuals can be detained for up to 48 hours without a warrant — even if they are American citizens. This 48-hour period does not include weekends or holidays, which means many are detained for much longer than two days. As Theresa Dang, a representative of the Orange County May Day Coalition shared, more than 70 percent of the detainees do not have any criminal record.

From United Press International, a better way for regional governments to make a little spare change:

Colorado generates over $25M in marijuana revenue since legalization

Colorado made over $3 million in licensing and application fees before recreational pot shops even opened their doors.

Marijuana has already generated Colorado nearly $25 million in revenue since legalization, between taxes, licenses, and fees.

Before it even became legal to sell recreational marijuana on Jan. 1 of this year, the state had already collected over $3 million in licensing fees.

And in the first three months of this year alone, Colorado’s raked in nearly $22 million — over $16 million of that was in taxes, the rest in license and application fees — according to a report from the Colorado Department of Revenue.

The license and application fees may represent the boom of a new economy, and might eventually slow as that market stabilizes and fewer new shops open. Still, the tax revenue so far continues to climb month to month, as recreational sales jumped to $19 million in March — up nearly a third from $14 million in February.

Consider also a second UPI story:

Report: Global war on drugs a failure

The report emphasizes public health treatment instead of incarceration and prosecution

The global war on drugs is a failure, economists of the London School of Economics, including five Nobel Prize winners, said in a report.

The 84-page report, entitled “Ending the Drug Wars: Report of the LSE Expert Group on the Economics of Drug Policy,” calls for reform of drug laws and theorizes a “drug-free world” based on prohibition is wasteful and expensive. It calls for a “major rethink of international drug policies.”

The report suggests decriminalization would reduce incarceration and health care costs worldwide, and notes countries with the harshest drug penalties have higher incarceration and HIV infection rates.

And then there’s this, from the Guardian:

Arrests for low-level marijuana crime plummet in New York City

  • Commissioner says police are using ‘more discretion’ as arrests for minor crimes fall 34% in first quarter of new mayor’s term

Minor marijuana arrests in New York City have plunged in recent years amid questions about police tactics. But new statistics show the arrests dropped more modestly in the first three months of a new mayoral administration that has pledged to reduce them.

Arrests for the lowest-level marijuana crime fell 34% in the first quarter of – and 9% in the first quarter of this year, to roughly 7,000, according to state Division of Criminal Justice Services data obtained by the Associated Press. Both comparisons are to the same period in the previous years.

Police commissioner William Bratton recently said the department is “attempting to use a lot more discretion” and decreasing the arrests, which Mayor Bill de Blasio decried during his campaign last year.

While Want China Times takes the fast track:

China mulls building high speed railway to the US

The first of the three cross-border high-speed railway plans being constructed or promoted is the high-speed railway line connecting Europe and Asia, which starts from London, will pass through Paris, Berlin, Warsaw, Kiev, Moscow and then branch out to Kazakhstan, or Khabarovsk and then enter China’s Manzhouli. The domestic section of this line has already started construction while the sections outside China are still being negotiated.

The second line is a Central Asia high speed railway that will start in Urumqi, pass through Kazakhstan, Uzbekistan, Turkmenistan, Iran, Turkey and conclude in Germany. The domestic section is being promoted, while the sections outside China are still being negotiated.

The third line will be the Pan-Asian high speed rail, which starts in China’s southwestern province of Kunming.

From the San Jose Mercury News, a local-to-esnl reminder that it ain’t over yet:

Underwater homes: Minorities still suffering from housing collapse

Despite the Bay Area’s robust housing recovery, the East Bay communities of Vallejo, Antioch and Richmond are among the nation’s 100 cities with the highest percentages of underwater mortgages, according to a report released Thursday.

The report, by UC Berkeley’s Haas Institute for a Fair and Inclusive Society, points out that these communities and others with large minority populations have substantial percentages of homes still underwater, or worth less than their mortgages. Initially targeted by subprime lenders and then hit with the steepest home price declines, the communities are still struggling from the housing crash.

The study called for more federal action to help the cities, and without that, endorsed Richmond’s plan to use eminent domain to take over underwater homes and modify their mortgages. That proposal has critics saying it would end up in the courts for years, and would hurt the city’s real estate market if it were implemented.

On to Canada, and one of the dumbest political moves ever from CBC News:

Tim Hudak would cut 100,000 public sector jobs if Tories win Ontario election

Ontario’s Progressive Conservative leader drew swift condemnation from his opponents Friday as he announced a plan to slash the number of public sector workers in the province by 100,000 if he wins next month’s election.

Tim Hudak said it would be a tough move, but one that would reap benefits in the future. “I take no joy in this, but it has to be done if we want job creators to put more people on the payroll in our province,” he said in Barrie, Ont.

Hudak’s vision — which forms part of his much-touted plan to create one million jobs over eight years — would trade jobs in the public service for the creation of new positions in the private sector.

Another reason why it’s a stupid move from BBC News:

Canada sees little employment growth in last year

The Canadian economy shed 29,000 jobs in April while the unemployment rate remained flat at 6.9%, according to Statistics Canada. However, the number of people working rose 0.8% from a year earlier, split between full- and part-time workers.

Employment fell in Newfoundland and Labrador, Quebec and New Brunswick but rose in Saskatchewan.

Since August 2013, the Canadian economy has seen little overall employment growth, according to the report. And labour force participation fell to 66.1% from 66.5% in April 2013.

There’s much, much more after the jump, including Britain’s household debt timebomb and some Cameron intransigence, a Dutch call for restricting European labor movement and a boom in yachts, then on to Germany for a unique legal victory and a business decline, France next, with Chinese police on the streets and an administration in trouble, a Swiss bankster surrender, a harsh austerian prescription for Portugal, Italian legal woes, the latest from Greece [including electioneering, dirty tricks and all], Russia nostalgia for the Soviet era, turmoil and trucks in the Ukraine, Latin American inflation and political turmoil, a Chinese economic invasion of Africa, Indian bankster chutzpah, billionaires in fisticuffs Down Under, Indonesian graftm, Thai turmoil, mixed news from China, Japanese corporate shenanigans, a host of environmental woes, a cartoon, music, and the latest chapter of Fukushimapocalypse Now!. . . Continue reading

Headlines II: Tales from the dark side


From the world of spies, lies, drones, hacks, and more.

For our first headline, this from the McClatchy Washington Bureau:

Despite Senate hopes of speedy release, CIA torture report won’t be made public for months

The release of the long-awaited Senate Intelligence Committee report on the CIA’s use of waterboarding and other interrogation techniques — widely denounced as torture — is certain to take much longer than the 30 days sought by Senate Democrats.

The panel’s chairwoman, Sen. Dianne Feinstein, D-Calif., said at the beginning of April that she hoped the CIA would complete by now the process of excising from the report information deemed harmful to national security.

The procedure, however, likely will take months, several experts said. That’s because it’s complex and time-consuming. Not only does the CIA have to review information that came from its archives, but other U.S. intelligence agencies as well as the Pentagon and the State Department have to evaluate material that they provided, they said.

Reuters delivers a glass of whine:

Snowden leaks prompt ‘insidious’ claims about spies: UK lawmaker

Supporters of former U.S. intelligence contractor Edward Snowden use “insidious” language that blurs lines between spying in democratic and authoritarian states, a senior British lawmaker said on Thursday.

Malcolm Rifkind, chairman of parliament’s Intelligence and Security Committee which oversees the work of Britain’s spy agencies, said their staff had “noble motivations” and no desire to be “all-seeing” or “all-hearing”. . .

“Unfortunately, the insidious use of language such as ‘mass surveillance’ and ‘Orwellian’ by many of Mr. Snowden’s supporters to describe the actions of Western agencies blurs, unforgivably, the distinction between a system that uses the state to protect the people, and one that uses the state to protect itself against the people,” Rifkind said.

Deutsche Welle covers a coming hearing — or not:

German NSA investigative panel to allow Snowden to testify

NSA whistleblower Edward Snowden is to testify before a German panel investigating the activities of the spy agency. However, the panel has not yet determined whether he may travel to Berlin for the hearing.

The parliamentary committee, comprised of representatives from Germany’s four parties in the Bundestag, announced the decision on Thursday after deliberating over the matter for roughly two hours.

The vote was unanimous, according to Martina Renner, the chairperson of Germany’s Left party for the special committee.

Lawmakers involved the formal inquiry of NSA activities did not decide on Thursday, however, where the long-awaited hearing would take place.

Meanwhile, the ex-top eavesdropper has taken a spin in the revolving door. From Politico:

Ex-NSA chief Keith Alexander seeks post-Snowden second act

Former National Security Agency chief Gen. Keith Alexander is launching a consulting firm for financial institutions looking to address cybersecurity threats, POLITICO has learned.

Less than two months since his retirement from the embattled agency at the center of the Edward Snowden leak storm, the retired four-star general is setting up a Washington-based operation that will try to attract clients based on his four decades of experience in the military and intelligence — and the continued levels of access to senior decision-makers that affords.

“He’s already out pushing hard,” said an industry source recently briefed by Alexander on the new business venture. “He’s cleared. If something does pop, he can get in the door and get a briefing. That’s part of his stock and trade.”

North of the border, and more snoopery from CBC News:

Chantal Bernier says Ottawa snooping on social media

  • Privacy commissioner urges government to clarify rules for when and where data can be collected

Federal government departments are collecting data on Canadian citizens via their social media accounts for no good reason, Canada’s privacy watchdog says.

In a letter to Treasury Board president Tony Clement in February, interim privacy commissioner Chantal Bernier says “we are seeing evidence that personal information is being collected by government institutions from social media sites without regard for accuracy, currency and accountability.”

The letter dated Feb. 13th also reads: “Should information culled from these sites be used to make administrative decisions about individuals, it is incumbent upon government institutions to ensure the accuracy of this information.”

The letter is just the latest example of how Canada’s chief privacy watchdog has raised a red flag about troubling gaps in the security of Canadians’ personal information.

South of the border, lawmakers also fret, as BuzzFeed reports:

Democratic Congressman Worries About NSA Having Access To Phone Calls With His Hypothetical Mistress

  • Democratic Rep. Jerrold Nadler of New York was speaking at the House Judiciary Committee mark-up of the USA Freedom Act which would end the bulk collection of Americans’ communications records, when he commented on metadata being able to show calls to a “mistress if I had one.” “You can learn a lot from metadata about a person and invade his privacy tremendously.”

From the Independent, and, like, they’re surprised?:

US accuses Israel of ‘alarming, even terrifying’ levels of spying

Friends do not spy on friends. That illusion about America’s attitude to its allies was conclusively debunked by Edward Snowden’s revelations about America’s National Security Agency and its British partner in global electronic eavesdropping, GCHQ. But by every account, the US is being repaid in kind by one of its closest international friends – Israel.

Israel has been trying to steal secrets from the US, its principal protector and benefactor, but also occasional rival, ever since the inception of the Jewish state in 1948, and even before. But according to the latest issue of Newsweek, quoting Obama administration officials, these activities have “crossed red lines” rarely encountered in the past.

In the words of one Congressional aide, with access to classified briefings in January on the subject, Israel’s behaviour was “very sobering…alarming…even terrifying”. Israel, it would appear, is after everything it can lay its hands on: not just diplomatic and policy documents, but industrial and military technology. The means include Israeli trade missions to the US, joint ventures between Israeli and American companies and, presumably, spying by Israeli intelligence agencies.

Quartz recruits [and they’re, like, surprised?]:

China and the US are racing to turn poor, naive Millennials into spies

Chinese state media are accusing an “unnamed foreign country” of recruiting spies at Chinese universities and through popular blogs and social media. This week, a series of news reports claim that unsuspecting Chinese, some of them as young as 16 years old, are being lured into working for foreign intelligence agents.

The reports seem to be a response to a short documentary posted by the US Federal Bureau of Investigations last month, telling the story of a 28-year-old Michigan native, Glenn Duffie Shriver who says he was was recruited to spy for the Chinese while living in Shanghai, and was eventually caught by US authorities. The FBI video describes Chinese intelligence officers plying the young American with cash and luxury liquor, and appealing to his fascination with China.

The fact that this kind of covert recruitment occurs isn’t as surprising as each government’s attempts to paint the other as emotionally manipulative and ruthless. It may be a sign that US and Chinese intelligence agencies are waging a war for public opinion, as well as critical information.

From the Guardian, a non-disappearing act:

Regulators reprimand Snapchat over false claims about messaging service

  • Company had promised messages ‘disappear forever’
  • FTC says Snapchat deceived over personal data collection

The Federal Trade Commission (FTC) said on Thursday that the fast-growing service had deceived people about the privacy of the messages sent through its service and secretly collected sensitive information about its users.

According to Snapchat, this month users are sending 700m photos and videos per day. Snapchat messages, known as snaps, are timed to delete after they have been viewed and it has become a popular service for people “sexting” – sending pornographic photos and texts – as well as for people wanting greater privacy from their messaging services.

The FTC said that in marketing the service Snapchat failed to disclose the ease with which users can save a message by taking an undetectable screenshot or by using a third-party app. Apps allowing snap recipients to copy and store messages indefinitely have been downloaded “millions of times”, said the FTC. Despite a security researcher warning the company about this possibility, the FTC said, “Snapchat continued to misrepresent that the sender controls how long a recipient can view a snap.”

The Guardian again, with questions about domestic security:

Albuquerque residents attempt citizen’s arrest of police chief

  • Protests against police brutality cause rowdy city council meeting to end with attempted citizen’s arrest of controversial chief

As the threat of another tense standoff at an Albuquerque city council meeting brews, protesters angry over a series of police shootings are harkening back to the city’s long history of civil disturbance and modeling their demonstrations after those including a notorious 1960s citizen raid of a northern New Mexico courthouse.

In 1967, protesters contending the US government stole millions of acres of land from Mexican American residents stormed a courthouse to attempt a citizen’s arrest of the district attorney. During the raid, the group shot and wounded a state police officer and jailer, beat a deputy and took the sheriff and a reporter hostage.

Now a leader of this week’s protest cited that episode as the motivation for the city council demonstration in which protesters attempted a citizen’s arrest of the police chief.

Here’s a video report from station KRQE in Albuquerque:

Protesters take over Albuquerque City Council meeting

Program notes:

Angry protesters took over Albuquerque City Council Monday night calling for immediate change at APD and the ousting of both Albuquerque’s Police Chief, Mayor and more.

BBC News covers criminalized blogging, the venue not so surprising:

Saudi blogger Raif Badawi gets 10 year jail sentence

A Saudi court has imprisoned blogger Raif Badawi for 10 years for “insulting Islam” and setting up a liberal web forum, local media report. He was also sentenced to 1,000 lashes and ordered to pay a fine of 1 million riyals ($266,000; £133,000).

Amnesty International called the verdict “outrageous” and urged the authorities to quash the verdict.

Mr Badawi, the co-founder of a website called the Liberal Saudi Network, was arrested in 2012.

From TheLocal.se, flying high to spy high, oops:

SAS flight in Russian spy plane near miss

A Scandinavian Airlines flight had to take last minute evasive action to avoid colliding with a Russian spy plane just off the Swedish south coast in March, according to a report which emerged on Thursday.

According to a Sveriges Television report on Thursday, the incident occurred on March 3rd just 50 kilometres south of the Swedish city of Malmö – home to over 300,000 people.

The plane was reportedly a Russian Ilyushin 20m military aircraft used for signals surveillance. The two aircraft are reported to have passed by each other a mere 90 metres apart.

From Guardian, criminal stupidity?:

FBI agent faces charges in Pakistan for boarding a flight with weapons

  • US State Department confirms that Joel Cox is federal agent and says Pakistani authorities are co-ordinating to resolve arrest

A FBI agent arrested in Pakistan for trying to board a civilian flight with bullets and a knife in his luggage is being investigated on possible criminal charges, Pakistani authorities said on Thursday.

Joel Cox, confirmed by the US State Department as an FBI agent, was arrested on Sunday at the airport in the southern city of Karachi after trying to board a flight with the knife and 15 9mm bullets in his luggage, police said.

The case has revived memories of Raymond Davis, an American CIA contractor who was arrested in January 2011 after shooting dead two men he believed were about to rob him in the eastern city of Lahore.

After the jump, the latest from the ongoing Asian Game of Zones, including drones, a ship-ramming China/Vietnam engagement and sundry responses, history wars, Japanese remilitarization, and more. . .
Continue reading

Headlines: eCons, banksters, crimes, more


Today’s collection of headlines on the unfolding events in economic, politics, and the environment covers lots of ground, but our sense that events are moving toward a climax as the drama continues to accelerate.

First up, another sign of hard times, Catholic fundamentalism, via the London Telegraph:

Decline of religious belief means we need more exorcists, say Catholics

  • Decline of religion in the West has created a rise in black magic, Satanism and the occult

The decline of religious belief in the West and the growth of secularism has “opened the window” to black magic, Satanism and belief in the occult, the organisers of a conference on exorcism have said.

The six-day meeting in Rome aims to train about 200 Roman Catholic priests from more than 30 countries in how to cast out evil from people who believe themselves to be in thrall to the Devil.

The conference, “Exorcism and Prayers of Liberation”, has also attracted psychiatrists, sociologists, doctors and criminologists in what the Church called a “multi-disciplinary” approach to exorcisms.

And from the Christian Science Monitor, unlikely allies:

Google, Facebook strike back against FCC plans to reshape the Internet

  • Some 150 tech companies sent a letter to the FCC, saying proposed rules would undermine ‘net neutrality,’ which has fueled the exponential growth of the Internet, they say.

After years of setbacks, the supporters of “net neutrality” have begun a full-throated counterattack this week. On Wednesday, 150 tech companies including Google, Facebook, Twitter, Amazon, and Netflix asked the Federal Communications Commission to preserve a core principle that has guided the Internet’s exponential growth since its advent decades ago.

At issue are new FCC rules announced last month that allow Internet providers such as Verizon, Comcast, and AT&T to treat some content on the Internet differently. For example, they can create “fast lanes” that will move content across the Internet more quickly, but companies like Google and Facebook will have to pay to use it. This, critics say, is a violation of net neutrality, in which all content – whether it’s a Netflix stream or an e-mail to grandma – is treated the same.

Internet providers such as Comcast say it’s common sense that companies that make more demands on their networks – like Netflix – should pay more for quicker service. Critics say this would turn the Internet – one of the greatest engines of innovation and freedom in the 21st century – into the playground of the highest bidders.

Another response from Al Jazeera America:

Open Internet backers stage ‘Occupy FCC’

  • Protesters plan to stay in front of communications regulator until it supports Net neutrality

Internet libertarians calling for the equal treatment of all Internet data have camped out in front of the Federal Communications Commission (FCC) in Washington, D.C., saying they won’t quit their Occupy-style protest until the regulator stands up for Net neutrality.

About 15 people stood outside the FCC’s headquarters on Wednesday afternoon in a protest organized by the two groups, Fight for the Future and Popular Resistance. Five of the demonstrators said they were determined to set up camp overnight and stick around until May 15, when the commission is set to unveil proposed new Net neutrality rules — or perhaps longer, if the new rules don’t meet their expectations.

Margaret Flowers of Popular Resistance says members of the protest — officially called “Camp Out to Save Net Neutrality” or “People’s Firewall FCC Camp” and unofficially as “Occupy FCC” — are in it for the long haul, bringing sleeping bags and signs and engaging in chants, such as “Hey, hey, FCC, the Internet must be free” and “FCC, drop the barrier, make the Internet a common carrier.”

From CNBC, a case of too little, too late:

US Fed proposes rule to limit size of merged banks

The U.S. Federal Reserve on Thursday proposed a rule to limit concentration in the financial sector, a requirement of the 2010 Dodd-Frank Act to make banks safer after the crisis.

The rule would prohibit a bank merger if the new company’s liabilities exceed 10 percent of the aggregate consolidated liabilities of all financial companies, the central bank said in a press release.

Companies subject to the rule would be depository institutions, bank holding companies, savings and loan holding companies, foreign banking organizations, companies that control insured depository institutions, and non-bank financial companies designated “as systemic’‘ by the Financial Stability Oversight Council (FSOC), a tag that carries greater regulation and Fed oversight.

And from the Department of Snowball’s Chance in Hell of Survivng a GOP House, this from BBC News:

Carl Levin eyes bill to end corporate tax loophole

US senator Carl Levin has said he plans to introduce legislation into Congress that would close a loophole allowing US companies to move overseas and avoid US taxes.

The loophole – known as an “inversion” – allows US firms to reincorporate abroad, generally in an effort to avoid the US corporate tax rate of 35%.

Pfizer’s bid for AstraZeneca has put renewed focus on the practice.

From Al Jazeera America, a verdict of the Bush/Obama education agenda:

National report card: High school seniors lack critical skills

Handing out dismal grades on Wednesday, the Nation’s Report Card said America’s high school seniors lack math and reading skills critical in an increasingly competitive global economy.

Only about one-quarter are performing proficiently or better in math and just 4 in 10 in reading. And they’re not improving, the report says, reinforcing concerns that large numbers of today’s students are unprepared for either college or the workplace.

Scores on the 2013 exam in both subjects were little changed from 2009, when the National Assessment of Educational Progress was last given to 12th graders. The new results come from a representative sample of 92,000 public and private school students.

From Reuters, the search for a captive audience:

Exclusive: Barnes & Noble seeks big expansion of its college stores

The U.S. bookseller, which opened in 1965 as a university bookstore in New York, wants a much bigger presence on college campuses, where students last year spent an average of $1,200 on textbooks and supplies, according to the College Board.

Barnes & Noble, now the second largest operator of college bookstores with 696 shops, plans to have about 1,000 locations within five years, Max Roberts, chief executive of the company’s college business, said in an exclusive interview at Rutgers University’s bookstore in New Brunswick, New Jersey.

It intends to do that by getting more schools to outsource their bookstore operations with the lure of nicer, higher-grossing stores and by poaching accounts from larger rival Follett Corp, which runs 940 stores.

A boom brings its own crisis, via MintPress News:

North Dakota Asks Nation For Help In Human Trafficking Epidemic

North Dakota’s male-dominated oil fields have created huge demand for sex workers. This demand has led to a human trafficking epidemic that the state can’t remedy on its own.

The men working on the oil fields don’t seem put off by the large rent checks they are writing, but the highly skewed male-to-female ratio is proving problematic, prompting many to seek out prostitutes.

Although prostitution is currently illegal in North Dakota and is classified as a Class B misdemeanor, punishable by up to a year in prison and a $1,000 fine, the demand for prostitutes has never been higher in the Roughrider State.

Windie Jo Lazenko is an advocate for human trafficking victims who founded 4Her North Dakota — a ministry that helps educate the public and advocate for victims in the hope of eradicating human trafficking for the purpose of sex in the United States. Though she was raised in Southern California, Lazenko has found herself in North Dakota in recent years investigating rumors of rampant human trafficking in the state.

From China Daily, a trans-Pacific customer:

US exports to China total $120b last year: USCBC

The US exports to China hit $120 billion last year, making China the third largest export market for American goods, said the US-China Business Council (USCBC) Wednesday.

In a newly released report, the USCBC, a private, non-profit organization, noted that US exports to China have grown at an average annual rate of 15.1 percent over the past 10 years, fastest among all major US trading partner.

The American exports to China rose by 10.4 percent last year, making it a major export market for US goods only behind Canada and Mexico, the two neighbors with which the United States has a free trade agreement.

CNBC delivers another verdict:

Yellen: Economy remains on track but keep an eye on housing

The economy is “on track for solid growth this quarter,” Federal Reserve Chair Janet Yellen said on Wednesday, but warned that a deterioration in housing or financial markets could alter that scenario.

After recent weakness that was mostly weather-related, Yellen said many recent indicators suggest a rebound in spending and production. However, the Fed chief told a joint Congressional committee that housing remains a risk to the recovery, even as the Fed expects that sector to pick up eventually.

The newly-appointed top central banker walked a fine line between preparing markets for normalizing monetary policy from its crisis era levels, and assuring the public that the Fed would continue to safeguard a still fragile recovery. A brutally cold winter triggered a run of weak activity that caused economic growth to flatline in the first three months of the year.

From CNBC again, another verdict:

Fed Chair Yellen: Minimum wage hike to have negative impact on jobs

In testimony before a Senate committee on Thursday, Fed Chair Yellen said a minimum wage increase would likely have some negative effects on jobs, though it’s not clear how large.

Still, boosting the federal minimum wage, which has remained at $7.25 per hour since mid-2009, would benefit some people, she added.

In recent months, the federal minimum wage has been a hot-button issue. In February, President Barack Obama boosted the minimum pay for federal contractors hired in the future to $10.10 per hour. He’s also voiced his support for the federal level for all workers to rise to $10.10 from the current $7.25. Separately, organized protests of fast food workers have lobbied for a jump to $15.

While My Budget 360 offers another bottom line:

US household debt nearly twice as high as annual wages and salaries: Inflating the consumer debt bubble with student loans and auto debt.

The latest consumer credit report surprised to the upside. What was the surprise? Americans are back to borrowing money they don’t have. Are they borrowing for investing or possibly purchasing a modest home? No.

The latest data shows that Americans are once again going deep into student debt and auto debt. This is actually worse than borrowing for a home you can’t afford. A car will begin losing its value seconds after you drive it off the lot. Yet this is where Americans are pouring their money. So don’t be surprised if you see a pizza delivery person driving in a nicer car than you are.

Since the 1980s, households have been supplementing the decline in their standard of living by going into deep debt.

And Naked Capitalism sets the stage for another crisis:

SEC Official Describes Widespread Lawbreaking and Material Weakness in Controls in Private Equity Industry

At a private equity conference this week, Drew Bowden, a senior SEC official, told private equity fund managers and their investors in considerable detail about how the agency had found widespread stealing and other serious infractions in its audits of private equity firms.

In the years that I’ve been reading speeches from regulators, I’ve never seen anything remotely like Bowden’s talk. I’ve embedded it at the end of this post and strongly encourage you to read it in full.

Despite the at times disconcertingly polite tone, the SEC has now announced that more than 50 percent of private equity firms it has audited have engaged in serious infractions of securities laws. These abuses were detected thanks to to Dodd Frank. Private equity general partners had been unregulated until early 2012, when they were required to SEC regulation as investment advisers.

MarketWatch sounds the alarm:

10 peaking megabubbles signal impending stock crash

  • Commentary: Fed-driven rally is about to end badly

Yes, “the bull market may come to an end any time,” warns Jeremy Grantham, founder of the $117 billion GMO investment giant. An unpredictable collapse. Risky valuations, 10 bubbles peaking, and black swan megatrends: The bull “could be derailed by disappointing global growth, profits sagging as deficits are cut, a Russian miscalculation, or, perhaps most dangerous and likely, an extreme Chinese slowdown.”

Yes, Grantham’s hedging his near-term: Betting the S&P 500 could rally past 2,250 before the 2016 presidential election, “depending on what new ammunition the Fed can dig up.” But then, a black swan will ignite “around the election or soon after, the market bubble will burst” and “revert to its trend value, around half of its peak or worse.”

Yes half. The S&P 500 will collapse to about 1,125. This Fed-driven rally “will end badly.” Repeating the dot-com losses of 2000-2003. Repeating Wall Street’s $10 trillion losses in 2007-2009.

Add another potential bubble, via MintPress News:

A Win For Civil Society As Corporations Divest From Private Prison Industry

Corporate divestment from the U.S. private prison sector could major a big impact on the industry — even if it’s mostly symbolic.

Three corporations considered major investors in the U.S. private prison industry are moving to dump their holdings in the sector, apparently in response to newly stepped-up pressure from civil society.

The total divestments add up to about $60 million, and organizers say more divestment announcements are on the way. Two of the three companies — Amica Mutual Insurance and Dutch chemicals manufacturer DSM North America — have reportedly offloaded all of their shares in the Corrections Corporation of America and Geo Group, the country’s two largest for-profit corrections companies.

“In accordance with [U.N.] principles … with respect to the protection of internationally proclaimed human rights, the [DSM Netherlands] pension fund has divested from the for-profit prison industry,” Hugh Walsh, president of DSM North America, said in a statement late last month.

On to Europe and a eurobankster decision from BBC News:

ECB holds rates but Draghi hints at policy change

European Central Bank president Mario Draghi has hinted the bank’s policymakers may act soon to reverse the eurozone’s prolonged low inflation.

The ECB chief said on Thursday that the monetary authority was “not resigned” to low inflation, which at 0.7% is well below the 2% target.

The comments followed that ECB’s decision to keep its benchmark interest rate at a record low of 0.25%.

Attribution, via EUobserver:

Russia driving up euro, says Draghi

Low inflation, weak demand and high unemployment are not the only reasons for a strong euro, which is a “matter of serious concern” for the governing board of the European Central Bank (ECB).

Russia’s actions in Ukraine are “certainly one of the reasons”, with credit flows from Russia and Ukraine “having the effect of keeping the euro strong,” ECB chief Mario Draghi said Thursday (8 May) in a press conference.

The euro is appreciating because it is seen as a safe haven by investors, compared to the shaky Ukrainian hryvnia and the Russian ruble.

And from New Europe, vast indifference:

Euro election fails to interest 62% of Europeans

  • Suppose they held an election and nobody came?

A poll has shown that six out of ten Europeans are uninterested in the elections to the European Parliament in three weeks time.

The survey of 9,000 people in 12 countries will cause great concern in Brussels where the parliament has faced declining turnout since elections were introduced in 1979.

‘This time it is different’ is the slogan used by the parliament in a 15 million Euro campaign to persuade voters to turn up on polling day, 22 to 25 May.

The political parties of Europe have also tried to boost the poll by picking lead candidates and campaigning across the continent.

New Europe again, this time with positive[?] news:

Council adopts new measures to cut broadband costs

  • The measures promote the joint use of infrastructure

The Council today adopted a directive which will make it easier and cheaper to roll out high-speed electronic communications networks, among other things by promoting the joint use of infrastructure, such as electricity, gas and sewage pipes.

Today’s final adoption of the legislative act by the Council follows an agreement reached at first reading with the European Parliament. The Parliament held its vote at the plenary session on 15 April 2014.

Member states must adopt national provisions to comply with the new directive by 1 January 2016, and they must apply the new measures from 1 July 2016.

On to Britain and a body count from BBC News:

Barclays to cut 19,000 jobs over three years

Barclays is to cut 19,000 jobs by 2016, with more than 9,000 to go in the UK, the bank has said.

As part of a new strategy, the investment part of the bank will lose about 7,000 jobs by the end of 2016.

Barclays’ investment bank has been hit by a slowdown in the demand for government and company debt.

Ireland next, Sky News and bad news for women:

No NHS Abortions For Northern Ireland Women

Women who are unable to receive abortions in Northern Ireland are told they are not entitled to the procedure for free on the NHS.

The High Court has upheld a ruling which forbids women from Northern Ireland receiving free abortions in England. Mr Justice King rejected a legal challenge to restrictions on women from Northern Ireland undergoing terminations on the NHS.

The case was brought  by a teenager, referred to as “A”, who was denied an abortion by medical authorities in Northern Ireland in October 2012. Laws on the procedure are extremely strict, with terminations only permitted when the life of the mother as at risk.

The girl, aged 15 at the time, then sought an abortion in England, where abortions are legal, but was denied NHS treatment. She was forced to pay £600 to have the operation done privately and a further £300 in travel costs.

A stunning allegation, via EUobserver:

EU ‘bullied’ Ireland into bailout, former Barroso aide says

The EU’s institutions ‘bullied’ Ireland into a bailout, a senior former adviser to the European Commission’s president said on Wednesday (7 May).

In an interview with Irish network RTE, Phillipe Legrain accused the Commission and the Frankfurt-based European Central Bank (ECB) of having sided with France and Germany in insisting that Irish taxpayers were left solely responsible for the €64 billion debt burden held by its banks, a move he described as “unjust and unbearable”.

“It was a mistake by the previous government to guarantee all Irish bank debts but it was outrageous to effectively threaten to force Ireland out of the euro unless the government went through with that foolish pledge,” said Legrain.

Between 2011 and February 2014, Legrain was principal adviser at the Bureau of European Policy Advisers, the in-house think tank which provides economic advice to Commission president Jose Manuel Barroso.

Sweden next with TheLocal.se, imitating the Nazis:

Roma rep: Register payouts ‘a disgrace’

Sweden’s Chancellor of Justice ruled on Wednesday that those listed in an illegal Swedish police register of Roma will be entitled to receive compensation of 5,000 kronor ($768), an award dismissed by a leading representative as “a disgrace”.

“This is a further violation. But it is at the same time positive that a state body… rules that what the police have done is wrong and illegal,” Soraya Post, EU parliamentary candidate for the Feminist Initiative and Roma human rights activist, told the Dagens Nyheter daily on Wednesday evening.

“We will just have to bring this before the European Court,” she added.

The Chancellor of Justice (Justitiekanslern – JK) confirmed on Wednesday that the Skåne County police department register was illegal. The existence of the register was exposed by Dagens Nyheter’s reporter Niklas Orrenius in September 2013.

Germany next, and a household budget from EurActiv:

German living expenses rank high

In Germany, day-to-day goods are one-third more expensive than in the rest of the world. But German price levels rank near average in a European comparison, while living in Switzerland and Norway comes with the highest price-tag, a recent study says.

Life in Germany is comparatively expensive, according to a recent study. In 2011, the price level in the Federal Republic was around 36% over the global average, the Federal Statistical Office (Destatis) reported on Wednesday (7 May).

Compared to German price levels, living costs were much lower in Asia. In South Korea, for example, people paid 28% less three years ago, while China and Russia were around half. In India, expenses were over 70% lower than in Germany.

Destatis based its findings on a study conducted by the World Bank’s International Comparison Program (ICP) which focused on purchasing power parities and comparative price levels.

Via TheLocal.de, ironic litigation:

Equality tsar sues own ministry – for inequality

The equality commissioner at the German Family Ministry is suing her own employers over the appointment of three men to key positions in 2012.

Kristin Rose-Möhring took the ministry to Germany’s administrative court on Thursday because the appointments of press spokesman, state secretary, and an independent commissioner on child abuse – were made without consulting her. All three posts subsequently went to men.

The 59-year-old, who has been in the post since 2001, said that although the appointments were made under a different minister (Kristina Schröder was replaced by the incumbent Manuela Schwesig last year), the same structures are still in place at the ministry. “There is still room for improvement,” Rose-Möhring said.

Via People’s Daily, anticipatory anxiety:

Growing euro area deflation risk could hurt German economy: research

The risk of deflation is growing in the euro area which threatens economic growth in Germany, the Institute of Macroeconomic Research (IMK) said on Thursday.

Based on its simulation calculations, IMK expected a stable German economy in 2014 and 2015 but warned of risks such as price stability.

The increase in German consumer prices of 0.9 percent in March was significantly below the inflation rate of the European Central Bank of 1.9 percent. In the euro area, prices rose by only 0.5 percent, while prices sank in Greece, Spain, Portugal and Cyprus.

On to France and on the defensive with TheLocal.fr:

‘Exiting from Europe is exiting from history’

President Francois Hollande on Thursday hit back at the growing anti-EU rhetoric in France fostered by the far right in its campaign for the European parliamentary elections.

In a commentary published in Le Monde on the anniversary of the Allied victory against Nazi Germany in World War II, Hollande recalled the words of another Socialist president, Francois Mitterrand, who defended European integration by saying “nationalism means war” while “Europe means peace”.

Hollande’s comments come as polls show the far-right National Front (FN) could come out on top in the May 25th European elections in France.

But the economy isn’t helping Hollande, as New Europe reports:

Industrial production in France falls 0.7 pct in March

  • France’s March trade gap also widened on soaring imports bills

French statistics bureau Insee reported on Wednesday a 0.7-percent decline in industrial output in France in March compared to February’s data.

According to Insee, Europe’s second largest economy produced less over the period due to sluggish auto industry and weak performance of food processing activity which fell by 2.3 percent and 1.1 percent respectively.

After growing by 0.3 percent in February, manufacturing also lost momentum with a 0.7-percent decrease, Insee reported.

From TheLocal.fr, a wiseguy rubout in an unlikely place:

Monaco magnate shot outside Nice hospital

The Italian mafia is suspected of being behind the shooting of the 77-year-old head of one of Monaco’s richest families outside a hospital in Nice on Tuesday night.

Hélène Pastor, said to be close to Monaco’s Royal family, and her chauffeur, named by the French press as Mohammed D, were seriously injured after being shot outside the L’Archet Hospital in the southern French city.

A report in the French daily Le Figaro pointed to investigators suspecting that two of Italy’s most notorious organized crime groups, ‘Ndrangheta or the Camorra, could be behind the attack. Both clans are said to have gained a strong foothold on the French Riviera’s property sector.

Switzerland next, and taxing woes for migrant labor from TheLocal.ch:

Minister urges tax hikes for Italian frontaliers

Switzerland needs to change its agreement with Italy over the taxation of cross-border workers to make it less appealing for them to work in the canton of Ticino, Swiss Finance Minister Eveline Widmer-Schlumpf says.

Widmer-Schlumpf made the comment during a meeting with the cantonal government of Ticino on Wednesday, broadcaster RTS reported.

The federal cabinet minister said that cross-border workers, known as “frontaliers”, who live in Italy currently pay Swiss tax rates, deducted at source, which are lower than those paid in their home country.

On to Lisbon with a warning from EUbusiness:

Eurogroup warns Portugal on bailout exit

There will be no turning back for Portugal when it makes a clean exit from its bailout this month without a credit safety net, the president of the Eurogroup warned Thursday.

“A precautionary credit line by definition is asked for in advance,” Dutch Finance Minister Jeroen Dijsselbloem said in an interview with Portuguese daily Expresso.

But if the request is made later “when conditions turn bad, it is no longer a precautionary credit line” and Portugal would then require a new rescue programme, he said.

Next up Spain, and austerian bondage from El País:

Brussels asks Spain for two more years of belt-tightening

  • More cuts likely to be counterproductive in a country that faces a winter of discontent on job front

Economic recovery is taking hold, the banking system has improved, unemployment is beginning a timid retreat, the European bank bailout has worked, and public finances are stabilizing. Spring is in the air in the reports coming out of Brussels and the statements coming out of government officials’ mouths.

But despite the good news, the European Commission wants Spain to have an extra spoonful of the same medicine. While its deficit targets for 2014 will be easily met, things are not so clear for the years 2015 and 2016, leading Brussels to request “considerable additional discretionary efforts.”

In other words, what the European executive wants to see is more cuts, according to the first report following Spain’s clean exit from the banking bailout.

El País again, this time with a culture war development:

Spanish Congress to examine controversial abortion reform in July

  • Socialists suspect conservative government is delaying passage of bill until after European elections

Justice Minister Alberto Ruiz-Gallardón is planning to take his abortion reform to Congress in July, when parliamentary groups will analyze it and suggest amendments, government sources told EL PAÍS.

The executive of Mariano Rajoy is firmly set on getting this controversial piece of legislation approved, although it is making sure that its passage through parliament does not coincide with the campaign run for the European elections on May 25.

Ever since December 2013, when the cabinet approved the controversial draft bill changing existing abortion laws – which critics say will take Spain back 30 years – opposition has been growing on the streets, in parliament and even within the ruling Popular Party (PP) itself, some of whose members have spoken out against the reforms.

And it’s on to Italy and some Bunga Bunga blowback from TheLocal.it:

Ex-Berlusconi MP arrested over mafia links

A former minister in Silvio Berlusconi’s last government has been arrested for allegedly helping a businessman, convicted of collusion with the mafia, escape Italy.

Claudio Scajola has been arrested in Rome for allegedly helping Amedeo Matacena, a Calabrian businessman escape a five-year jail term after his conviction for mafia association was handed down last year, Corriere della Sera reported on Thursday.

Matacena fled Italy for Dubai last year.

Berlusconi said he was “pained” to hear about Scajola’s arrest but did not know what the reasons behind it where.

And from TheLocal.it again, more corruption:

Milan Expo manager arrested for corruption

A manager for Milan Expo 2015 has been arrested while five others have been jailed as part of an investigation into a corruption scandal that also caught ex-politicians allegedly taking bribes, Bloomberg reported on Thursday.

Angelo Paris, head of contracts for the trade fair, which runs in Milan between May and October next year, is in custody, Milan Prosecutor Edmondo Bruti Liberati told the financial newswire in an e-mailed statement.

Police carried out searches at 80 public entities and firms in parts of northern Italy and Rome, with businessmen and politicians being snared on video allegedly taking bribes to secure Expo contracts.

After the jump, the latest disturbing developments from Greece, Russian economic stress, Ukrainian tension, Argentine woes and a Venezuelan crackdown, Indian pollution, Thai turmoil continues, a Chinese upturn, a mixed report card for Japan, environmental woes, anbd the latest in Fukushimapocalypse Now!. . . Continue reading

Headlines: Econotrix, politrix & envirotrix


We open today’s collection of headlines from the worlds of politics, economics, and the environment with this, a creation of Vangelis Papavasiliou of the Greek paper Eleftherotypia:

In today’s economy, recovery is a matter of perspective.

In today’s economy, recovery is a matter of perspective.

From USA TODAY, a reminder of just how flimsy are the underpinnings of the new, picoseconds-fast transactions on which our Brave New Financial Order is founded:

Four-year Flash Crash anniversary haunts markets

This week marks the fourth anniversary of the brutal flash crash that rocked markets on May 6, 2010, and is a stark reminder of how little has changed.

Even four years after the crash that wiped out $1 trillion in wealth in the blink of an eye, investors and academics still haven’t agreed on what caused one of the most vicious and inexplicable short circuiting of markets to occur.

On that day, the Dow Jones industrial average plunged roughly 1,000 points only to recover in minutes. High-frequency computerized trading, believed to at least be part of the cause of the breakdown, is still a major force in the markets. There have been tweaks made to “circuit breakers,” or thresholds of volatility that cause trading individual stocks or the market to be halted. But these measures are widely viewed as putting Band-Aids on an open wound — it might offer some comfort, but does little to fix the underlying problem.

“It can still happen now, and it does in certain (individual stocks),” says Joe Saluzzi, trader at Themis Trading.

Perhaps the reason why the problem isn’t being addressed is that we don’t really know — even four year later — what caused the Flash Crash. And as recently as 2013, there have been other widespread malfunctions in the market that remain largely mysteries. Regarding the Flash Crash of 2010, it took roughly five months before regulators, the Securities and Exchange Commission and the Commodity Futures Trading Commission released a report documenting the events that shook the markets. The report largely blames the “fragmented” stock market where there are multiple marketplaces exchanging prices with each other.

From Business Insider, the proceeds of plunder:

A Hedge Fund Manager Just Made The Biggest Home Purchase In US History

A Hamptons property has just taken the title of “most expensive home ever sold in the U.S.”

The 18-acre expanse in East Hampton just sold for $147 million to hedge-fund manager Barry Rosenstein of Jana Partners, according to Curbed Hamptons.

Rosenstein’s new neighbors on exclusive Further Lane include Jerry Seinfeld, hedge-fund manager Jim Chanos, and art dealer Larry Gagosian.

From Reuters, just a cost of doing business:

Credit Suisse In Talks To Pay $1.6 Billion To Resolve U.S. Tax Probe: Source

Credit Suisse Group AG is in talks with the U.S. Justice Department to pay as much as $1.6 billion to resolve an investigation into the bank’s role in helping Americans evade U.S. taxes, a person familiar with the matter said on Monday.

The penalty could be roughly twice the amount paid by UBS AG, which settled similar charges in 2009 for $780 million and agreed to identify its customers.

Prosecutors have also been pushing for Credit Suisse to plead guilty in connection with the probe, two people with knowledge of the talks said.

From Aviation Week, how the elite travels, at least on one Abu Dhabi-based airline:

Etihad Unveils Three-Room ‘Residence’ On A380 Fleet

All of the three-class A380s will seat 498, with two seats in “residence,” nine “apartments” (first class), 70 in business and 417 economy seats.

Etihad will be the second airline to offer showers on board the A380, a concept that has been introduced by its rival Emirates. There will be one shower available for the nine first class passengers, but the real innovation is the “residence.” It is located to the left and aft of the front staircase and consists of three rooms: A living room certified for two passengers during take-off and landing, a bathroom with a shower,  and the bedroom in the very front of the upper deck. The bedroom does not have windows. Other A380 operators have used the room next to the staircase for showers (Emirates) or for small lounge areas (Air France, Qantas). By creating the “residence” (125 square feet), Etihad is not giving up revenue space.

According to Chief Commercial Officer Peter Baumgartner, “residence” is going to be about three times as expensive as regular first class. A flight from Abu Dhabi to London would be around $20,000 one-way, but it can be used for two passengers. Etihad is targeting high net worth individuals who would otherwise use a private jet for long haul travel.

USA TODAY covers reality for some of the rest of us:

Single women say their income doesn’t cover expenses

Across the country, single women feel worse than both men and any age group about their ability to make ends meet. In a survey of 1,200 adults given exclusively to USA TODAY by Consumers’ Research, the data show that about 60% of single women say they don’t earn enough to cover their expenses.

That’s compared with 45% of everyone surveyed, and 57% of those ages 50 to 59, the group with the highest percentage who said they don’t make enough to cover expenses.

Do Americans not make enough money, or are they living beyond their means?

“I would say that those two are the same thing,” says Joe Colangelo, executive director of Consumers’ Research. “If you aren’t making enough to support your lifestyle, you need to make some life and habit changes.”

And from PandoDaily, another form of profitable plunder:

LEAKED: Docs obtained by Pando show how a Wall Street giant is guaranteed huge fees from taxpayers on risky pension investments

Thanks to confidential documents exclusively obtained by Pando, we can now see some of the language and fee structures in the agreements between the “alternative investment” industry and major public pension funds. Taken together, the documents raise serious questions about whether the government employees, trustees and politicians overseeing major public pension funds are shirking their fiduciary responsibilities under the law when they are cementing “alternative” investment deals.

The documents, which were involved in a recent SEC inquiry into the $14.5 billion Kentucky Retirement Systems (KRS), were handed to us by SEC whistleblower Chris Tobe, an investment consultant and former trustee of the KRS. Tobe has also written a book — “Kentucky Fried Pensions” — about the scandalous state of the Kentucky public pensions system.

The documents provided by Tobe (embedded below) specifically detail Kentucky’s dealings with Blackstone – a giant Wall Street investment firm which has deployed a platoon of registered lobbyists in Kentucky and whose employees are major financial backers of Kentucky U.S. Sen. Mitch McConnell.

From Reuters, we won’t hold our breath:

U.S. attorney general says banks may face criminal cases soon

The U.S. Justice Department is pursuing criminal investigations of financial institutions that could result in action in the coming weeks and months, U.S. Attorney General Eric Holder said in a video, adding that no company was “too big to jail.”

The comments, made in a video posted on the Justice Department’s website on Monday, came as federal prosecutors push two banks, BNP Paribas SA (BNPP.PA) and Credit Suisse AG (MLPN.P), to plead guilty to criminal charges to resolve investigations into sanctions and tax violations, respectively, according to people familiar with the probes.

While Holder did not name any banks, he said he is personally monitoring the ongoing investigations into financial institutions and is “resolved to seeing them through.”

The Los Angeles Times covers gentrification of another sort:

Return of ‘mansionization’ has some L.A. homeowners grumbling

Six years ago, Los Angeles politicians imposed new limits on the size of new and renovated houses, promising to rein in what they called “homes on steroids” dwarfing blocks of smaller buildings.

But as the housing market rebounds and construction picks up, many homeowners complain that “mansionization” has revved up — reigniting long-standing policy battles and sometimes bitter fence fights over the face and feel of L.A.’s neighborhoods.

Builders are snapping up smaller, older homes, razing them and replacing them with bigger dwellings. Increasingly, sleek, square structures are popping up along streets known for quaint bungalows.

Opening the tent flap for the camel’s nose, via the New York Times:

Supreme Court Allows Prayers at Town Meetings

The Supreme Court on Monday ruled that a town in upstate New York did not violate the Constitution by starting its public meetings with a prayer from a “chaplain of the month” who was almost always Christian.

Justice Anthony M. Kennedy, writing for the majority in a 5-to-4 decision that divided the court’s more conservative members from its liberal ones, said the prayers were merely ceremonial. They were neither unduly sectarian nor likely to make members of other faiths feel unwelcome.

“Ceremonial prayer,” he wrote, “is but a recognition that, since this nation was founded and until the present day, many Americans deem that their own existence must be understood by precepts far beyond that authority of government to alter or define.”

In dissent, Justice Elena Kagan said the town’s practices could not be reconciled “with the First Amendment’s promise that every citizen, irrespective of her religion, owns an equal share of her government.”

Off to Europe, starting with some boosterism from BBC News:

EU raises its growth forecast for 2014

The European Commission has raised its growth forecast for the EU, saying that “the recovery has taken hold”.

The 26 nations of the EU are forecast to grow by 1.6% for 2014, a touch higher than the forecast of 1.5% made in late February. The growth forecast for the 18-nation eurozone remains at 1.2% for 2014.

The Commission expects the jobs market to continue to improve, forecasting EU unemployment will fall to 10.1% this year. In March, the rate was 10.5%

And from New Europe, giving the banksters a freer hand:

The EU partially suspended talks to hold a three-month public consultation over worries about the investment rules

Germany’s vice chancellor is underlining doubts about the need for new investment rules in a proposed European Union-U.S. trade deal — a thorny issue in the talks.

Vice Chancellor Sigmar Gabriel on Monday voiced strong support for the overall trade deal but said both sides already have a “sophisticated, legally safe position for investors” so he doesn’t see the need for a special agreement on that aspect. Germany has the EU’s biggest economy.

The EU partially suspended talks to hold a three-month public consultation over worries about the investment rules. Critics and some officials previously voiced unease over what they said were loopholes that might expose governments to lawsuits by multinational companies.

Off to Norway, and a ready customer from abroad via TheLocal.no:

Chinese tycoon keen to buy chunk of Norway

A Chinese property tycoon shut out by Iceland after he sought to buy a vast tract of the country is turning his attention to Norway, he told AFP on Monday.

Huang Nubo, founder of Chinese property firm Zhongkun Group, said in a telephone interview that he still wants to develop high-end resorts in northern Europe and plans to invest 80 million euros ($111 million) in Norway over the next five to 10 years.

His statement comes as a huge tract of the Arctic Svalbard Islands has been put up for sale by Henning Horn, a Norwegian industrialist and farmer, and his sisters Elin and Kari.

And some Norse doubts via New Europe:

70 percent of Norwegians opposes joining the EU

Skepticism over joining EU remains strong in Norway

More Norwegians are against seeking European Union (EU) membership today than several decades ago, making the prospect of Norway joining the 28-member bloc look even dimmer.

A new opinion poll, the Norwegian news agency NTB reported Monday, shows that 70 percent of Norwegians opposes joining the EU.

Only 20.2 percent of respondents in the poll, which was carried out by the agency Sentio for Norwegian-language newspapers “Klassekampen” and “Nationen,” were in favor of Norway joining the EU.

Next up France, and similar doubts from RFI:

Majority of French want smaller EU, poll

A new poll suggests a majority of French people would like the European Union to be smaller.

In a poll published on Monday, conducted by Viavoice for the French newspaper Libération, 64 per cent of those surveyed say they would prefer the European Union to centre around core countries, such as the euro countries, or the six founder-member states: France, Germany, Italy, Netherlands, Belgium and Luxembourg.

Twenty per cent of those polled are happy with the current membership and a mere seven per cent favour further EU enlargement.

49 per cent associate the EU with something negative while only 45 say for them it represents something positive.

From Europe Online, skepticism:

France set to miss deficit goal despite spending cuts, EU predicts
Europe

France has not gone far enough to whittle its deficit down to within EU limits, a new forecast predicted Monday, despite unprecedented cuts introduced by Paris.

France has struggled to rev up its economy – the second largest in the European Union – with warnings rampant about its sluggish competitiveness. There are concerns that Paris’ economic woes could complicate the recovery underway in the crisis-battered eurozone.

Last year, the EU gave France a reprieve by granting it two extra years – until 2015 – to bring its deficit below 3 per cent of gross domestic product (GDP).

And from Agence France-Presse, a rare win:

France Definitively Bans Genetically Modified Corn

France definitively banned the growing of genetically modified corn on Monday after its highest court and Senate both confirmed an existing ban.

A grouping of leftist senators including members of the ruling Socialists, Greens and Communists approved a law banning MON810, a type of GM corn produced by US firm Monsanto, that had already been passed by the lower house of parliament, overcoming opposition from right-wing members.

At the same time, the Council of State rejected a request from corn producers to overturn the ban on MON810.

New up Switzerland, and the possible end of a centuries’ old stance from TheLocal.ch:

Swiss ‘likely to vote on EU ties in two years’

Swiss citizens will likely go the polls in two years to decide on Switzerland’s future ties with the European Union, the country’s president Didier Burkhalter says.

In an interview published on Sunday by the German-language weekly NZZ am Sonntag, Burkhalter said it was his personal view that a referendum will be held in 2016 on bilateral relations with the EU.

“The decision will be at the end of a long process that has only just begun,” Burkhalter, a member of the centre-right Liberal party from Neuchâtel, told the newspaper.

“Until then there is still a tough obstacle course ahead of us.”

Spain next, and dismal numbers from TheLocal.es:

Half of young Spaniards have no money coming in

Almost half of all Spaniards aged 16 to 29 receive neither a salary nor government benefits while only one in five can afford to fly the family coop, the startling results from a new study reveal.

A total of 47.5 percent of young Spaniards receive no formal income at all, the study by youth lobby group CJE shows.

Youth unemployment is currently 55 percent but the CJE study shows the situation is made even worse by the precarious nature of that employment.

With just 34 percent of people aged 16 to 29 in Spain actually working, more that half of people in this age group are on temporary contracts. Of those contracts, 46.4 percent are of less than 12 months duration.

From the Independent, a lesson only half-learned:

Spain is inviting back Jews expelled from the country in the 16th Century. But don’t mention the Muslims

  • Our cousins in Madrid and Lisbon simply don’t want Muslims to come to Europe

The year of darkness, of course, was 1492, when the Moorish kingdom of Granada surrendered to Ferdinand and Isabella. Christian power was restored to the lands in which Muslims and Jews had lived together for hundreds of years and had rescued some of the great works of classical literature – by way of Baghdad – for us to study. Save for those who converted to Christianity or died at the stake – at least 1,000 Jews, perhaps as many as 10,000, among them – the entire Muslim and Jewish communities were thrown out of Spain and Portugal by the early 17th century. They scattered, to Morocco, Algeria, Bosnia, Greece and Turkey. Which is why the glories of Andalusian architecture can still be found in north Africa. The Sephardic (Spanish) Jews spoke Ladino, which was still understood in Sarajevo during the Bosnian war of the 1990s. In just over 100 years, the Christian monarchy of Spain had expelled half a million Muslims and between 200,000 and 300,000 Jews. There are now around 3.5 million Sephardic Jews in the world. Their ancient homes also still exist in Spain.

But now Spain and Portugal want to make amends, so we are told. They will give citizenship – full passports – to the descendants of families expelled from their countries. The government regards the expulsions as “a tragedy”, or – in the words of Spain’s justice minister – a “historical error”. It was, of course, an ethnic cleansing, a massive crime against humanity, but don’t let’s expect too much from our Spanish and Portuguese friends, as there are, unfortunately, a few problems. For example: Muslims need not apply.

And from TheLocal.es, what a dose of bananas didn’t cure:

‘They called me a monkey so I danced like one’

A new racism scandal erupted in Spanish football after fans made monkey chants at Levante’s Senegalese midfielder Pape Diop, just a week after Barcelona defender Dani Alves denounced a banana-thrower.

The 28-year-old Diop accused Atletico Madrid fans of subjecting him to abuse as his side inflicted a shock 2-0 defeat on the Liga leaders on Sunday.

He reacted by dancing in front of the disconsolate travelling fans at the final whistle Sunday, and television images showed some furious Atletico supporters making monkey gestures.

“It affected me a lot,” Diop said. “I went to take a corner and some of the Atletico fans began to make monkey chants. To play it down, I started to dance, but I didn’t insult anyone,” the player said.

Italy next, and a tongue-lashing from the top via ANSA:

Renzi says Italy must change or be EU laggards

  • Premier admits delay on institutional reforms is ‘costly’

Premier Matteo Renzi said Monday that the government’s reform programme was necessary to stop Italy becoming one of the European Union’s worst-performing States.

“Our ideas are not the result of improvisation,” Renzi told a seminar on the institutional reforms organised by his centre-left Democratic Party (PD). “We are anxious for change and we have to produce fast results or we won’t have credibility in the European Union.

“We are certain that if Italy changes, it’ll be at the helm. Otherwise it’ll become a laggard”. Renzi, who was sworn in as Italy’s youngest premier aged 39 in February, has presented a bill to change the Constitutional to overhaul the country’s costly, slow-moving political machinery.

From ANSA, the bleak numbers continue:

Italian unemployment worse than expected, says EU and Istat

  • Between 12.7%-12.8% in 2014, with ‘marginal improvement’ in 2015

Both the European Union and Italy’s national statistics agency on Monday revised upwards their forecasts of Italian unemployment for this year and the next. Italy’s unemployment rate will grow to 12.7% in 2014, up 0.5% on the year, according to national statistics agency Istat.

Light improvement is expected in the second half of the year, preceding a drop to 12.4% in 2015, added Istat.

Meanwhile the European Commission predicted Italy’s unemployment rate in 2014 to be 12.8%, “a new high”, as opposed to the 12.6% rate predicted in February.

From TheLocal.it, hard times intolerance, as when adults fear cooties:

‘We don’t want our kids to go on migrant bus’

A group of parents from Sicily refused to let their children go on a school trip because the bus they would have travelled on had previously transported migrants “suffering from diseases”.

The children, from Giacomo Albo di Modica school in Ragusa, had been due to go on the trip on Monday, but a group of about 60 parents rallied against it, saying “the risk of them catching a disease is too great, and we don’t want to take that risk,” according to a report in La Repubblica.

The children would have travelled on one of the buses, chartered by the local council, used to transport migrants from the port of Pozzallo to an emergency holding centre between Comiso and Ragusa in recent days, the newspaper said.

From New Europe, begging the question, as in is this real anti-semitism, or the sort redefined by Israeli media-spinners in which legitimate criticism of the Israeli government and its policies has been redefined as racism:

The number of Internet attacks, including texts, photos and videos, jumped to 156 in 2013 from 82 in 2012

Annual report on Anti-Semitism in Czech Republic registers steep increase of Internet attacks

A new study by Prague’s Jewish community has registered a significant increase of attacks against Jews on the Internet for the second straight year.

The annual report on anti-Semitism released Monday said the number of Internet attacks, including texts, photos and videos, jumped to 156 in 2013 from 82 in 2012. The report said the pro-Israeli stance of the Czech government was among the reasons for the attacks.

Besides the Internet attacks, it said anti-Semitism in the Czech Republic remains at a relatively low level with one physical attack registered last year and three attacks on Jewish property.

After the jump the latest from Greece, new developments in Latin America, mixed signals for the Chinese economy, a host of environmental alarm bells, and the latest chapter of Fukushimapocalypose Now!. . . Continue reading

Headlines: EconoEcoKleptoMegaManiacs


Once again, a collection of things economic, political, ecological, and more, complete with Fukushimapocalypse Now!

First up, from TechWeekEurope, an ominous notice that Big Brother intends you to wear him, ushering in the dawn of a new era of Taylorism:

Research Proves Wearable Tech Increases Employee Productivity

  • Rakspace says the main challenge now is harvesting data generated by employees’ devices for analytics

Adoption of wearable technology in the workplace can increase staff productivity and job satisfaction, suggests research commissioned by Rackspace.

However, IT professionals have raised concerns about the security of newly-generated data and the sudden increase in IT workloads caused by the introduction of devices like the Fitbit, Pebble and Google Glass.

The findings are the result of the Human Cloud at Work project [PDF], which looks at the impact wearable devices could have on the corporate environment.

Next up, a delay for a key piece of the neoliberal, Ayn Randian agenda from Global Times:

US senators voice concerns over prospects of TPP trade talks

US senators expressed on Thursday concerns over the prospects of a Trans-Pacific Partnership (TPP) trade deal despite progress made last week between the United States and Japan.

Orrin Hatch, the top Republican at the Senate Finance Committee, said the administration’s trade agenda was at risk of failure without trade promotion authority (TPA).

“I do not believe you can conclude high-standard agreements that will meet Congress’ approval without TPA,” he said during a hearing of the Senate Finance Committee. “History tells us very clearly that without TPA, your trade agenda will almost certainly fail.”

TPA, known as “fast track” trade legislation, provides that Congress must vote up or down on a proposed trade agreement without the possibility of amendment. Without that guarantee, it’s more difficult for other negotiating countries to make significant concessions.

Another significant voice joins in, via Open Media:

Top U.S. Senator: TPP’s secrecy must end and the agreement must “reflect the need for a free and open Internet”

On April 30th, 2014, over 3.1 million citizens and over 50 organizations united in a historic campaign to Stop The Secrecy around the Trans-Pacific Partnership (TPP). Our campaign culminated in our biggest and brightest projection in Washington D.C. last night – check out the images here.

Then, the next day, one of the most powerful members of the United States Congress, Senator Ron Wyden (D-OR) spoke out during a crucial Senate Hearing to call for an end to the extreme secrecy around the Trans-Pacific Partnership.

Senator Wyden explained, “Too often, there is trade secrecy instead of trade transparency. Bringing the American people into full and open debates on trade agreements that have the effect of law is not too much to ask.” In addition, Wyden also assured citizens that any agreements – including the TPP, “must reflect the need for a free and open internet, strong labor rights, environmental protections, and must be backed by stronger enforcement.”

From the Economic Times, a needed qualification:

Why the US unemployment rate dropped to 6.7%

The unemployment rate plunged for adult high school drop-outs to 8.9 percent from 9.6 percent. But April was a cruel period for them: The number of employed high school drop-outs fell to 9.9 million from 10.1 million. More than 200,000 of them lost jobs.

Their unemployment rate fell because even more of them _ 308,000 _ retired, gave up their search or never started looking for work. That’s a huge negative.

The overall unemployment rate fell primarily because fewer people started looking for work in April. More than 4 million Americans typically do so each month. But in April, only 3.7 million did.

That caused the number of people either working or looking for work to shrink, which, in turn, contributed to lower unemployment rates.

From the New York Times, notable numbers:

Why the Housing Market Is Still Stalling the Economy

Except in a few booming markets, housing is nowhere close to pulling its economic weight. Consider this:

Investment in residential property remains a smaller share of the overall economy than at any time since World War II, contributing less to growth than it did even in previous steep downturns in the early 1980s, when mortgage rates hit 20 percent, or the early 1990s, when hundreds of mortgage lenders failed.

If building activity returned merely to its postwar average proportion of the economy, growth would jump this year to a booming, 1990s-like level of 4 percent, from today’s mediocre 2-plus percent. The additional building, renovating and selling of homes would add about 1.5 million jobs and knock about a percentage point off the unemployment rate, now 6.7 percent. That activity would close nearly 40 percent of the gap between America’s current weak economic state and full economic health.

Resistance, via Al Jazeera America:

Postal workers resist privatization plans

Employees fear outsourcing of mail processing to Staples store counters and potential sale of post office branches

In a recent video message posted to the U.S. Postal Service’s YouTube channel, Postmaster General Patrick Donahoe appeared incredulous and indignant about protests that have erupted across the nation over changes he’s instituted. “There’s no interest in privatizing,” he said. “Do not let people get you confused.”

If that message was aimed at soothing the increasing nervousness on the part of postal employee unions, the postmaster failed to deliver. As seen in the simultaneous demonstrations in 27 states last week, as well as the postal employees’ presence at International Workers’ Day rallies on Thursday, several decisions by Donahoe have only heightened fears among America’s postal workers.

The most visible sign of union angst is the movement to thwart Donahoe’s aim of putting full-service USPS counters in 1,500 Staples stores, to be staffed with the office supply chain’s own, lower-paid employees. Yet that’s just the latest in a string of changes that seem geared toward outsourcing various postal jobs, which include efforts to consolidate processing plants and contract out the trucking of mail from plants to post offices.

From the Los Angeles Times, another notable number:

Seattle mayor proposes $15 minimum wage

A day after Republicans in the U.S. Senate quashed an effort to raise the federal minimum wage to $10.10 an hour, Seattle Mayor Ed Murray announced a proposal Thursday for a $15 municipal minimum wage that he said would “improve the lives of workers who can barely afford to live” in this high-tech city on Puget Sound.

Declaring it a “historic” day for progressives seeking to address the issue of income inequality, Murray laid out his complex and controversial proposal, which would be phased in over several years at different rates for large and small businesses. At least initially, income from tips and employer-provided health insurance would be taken into account.

If the City Council agrees, Murray said, Seattle will prove itself to be “an incubator of democracy,” leading the national conversation to address “the growing problem of income inequality.

And for our final U.S. item, the arrival of a filler four times deadlier than SARS from The Wire:

MERS Reaches the U.S. for the First Time

Officials from the Centers for Disease Control said on Friday that a case of Middle East Respiratory Syndrome (MERS) has been detected in the U.S. for the first time. The CDC said the MERS-infected patient is a healthcare worker who came to Indiana from Saudi Arabia, adding that it is collaborating with Indiana health officials to investigate the case. Per the CDC:

On April 24, the patient traveled by plane from Saudi Arabia to London, then from London to Chicago. The patient then took a bus from Chicago to Indiana. On the 27th, the patient began to experience signs of illness, including shortness of breath and coughing. The patient went to an emergency department on April 28th. Because of the patient’s symptoms and travel history, Indiana public health officials had him tested for MERS.

MERS, a SARS-like virus that was first detected in 2012, has largely affected patients in Saudi Arabia, but has broken out throughout the Middle East and has made an appearance in Greece, Britain, France, Italy, Malaysia and other countries. Since 2012, more than 300 Saudi Arabians were hit with the virus, and local officials have reported a recent surge in patients. Only about two-thirds of those diagnosed with the virus survived.

Off to Europe and qualified relief from Reuters:

Euro zone joblessness barely falls in March

The number of people out of work in the euro zone fell slightly in March but remained near a record high, a sign that European households are yet to feel the bloc’s economic recovery and are unlikely help generate growth in the short term.

Around 18.91 million people were jobless in the 18-nation bloc in March, 22,000 less than in February, or 11.8 percent of the working population, the EU statistics office Eurostat said on Friday.

That is slightly down from the record 12-percent level a year ago, while the 11.8 percent reading was the same as in February. The February reading was revised down by Eurostat from 11.9 percent earlier.

So what do the numbers show for the European Union? A spectrum ranging of Austrian at the low of 4.9 percent to Greece, with a high of 26.7 percent. Via Eurostat [PDF], click on the image to enlarge:

The two darker areas reflected the 28-member European Union and the 18.member common currency zone, the euro area.

The two darker areas reflected the 28-member European Union and the 18.member common currency zone, the euro area.

Reuters again, and more qualified numbers:

Euro zone factory recovery broadens, except for France

The recovery in euro zone manufacturing accelerated at the start of the second quarter with solid growth across most of the bloc although French factories struggled to maintain momentum, a business survey showed on Friday.

Growth was again led by Germany, Europe’s largest economy, and previously-lagging companies in Spain and Italy reported better business last month.

It was the first time since November 2007 that all PMIs in the region indicated growth – coming in above the 50 break-even level.

On to austerian Britain and some truly grim numbers from The Independent:

UK has second-worst child mortality rate in Western Europe, study finds

  • Leading doctors and midwives accuse Government of ‘failing to protect’ British children

The UK has the second-worst child mortality rate in Western Europe, a major new study has revealed, as leading doctors and midwives accuse the Government of “failing to protect” British children during the financial crisis.

In findings which were described as “shocking” by children’s charities, and which caused surprise among the researchers themselves, the UK ranked behind much poorer countries such as Cyprus and Greece and for prevention of mortality in under-fives.

The under-five mortality rate for the UK was 4.9 deaths for every 1,000 births. Only Malta, a country which ranks well behind the UK in terms of wealth, performed worse in the Western European region. The UK mortality rate was more than twice as high as the best-performing country, Iceland, and 25 per cent higher than the Western European average.

The Guardian covers more dubious numbers:

British aid money invested in gated communities and shopping centres

  • CDC development fund insists projects will create jobs in poor countries but NGOs accuse government of helping big business

Millions of pounds of British aid money to tackle poverty overseas has been invested in builders of gated communities, shopping centres and luxury property in poor countries, the Guardian can reveal.

CDC, the little-known investment arm of the British aid programme, has invested more than $260m (£154m) in 44 property and construction companies in Latin America, Africa and Asia.

At least 20 of these are hotels, shopping centres or companies that build or manage gated communities and luxury property, according to Guardian research.

On to Sweden, and some non-metaphorical alarm bells from TheLocal.se:

Neo-Nazis spark first church alarm since WWII

The churches in Jönköping rang their bells in warning for two hours on May Day as neo-Nazis took to the streets. The alarm marked the first of its kind for the central Sweden town since World War II broke out.

“We chose to ring the bells because we think it’s a threat to our open society when our streets play host to messages that do not respect every person’s value and dignity,” Swedish Church (Svenska Kyrkan) priest Fredrik Hollertz told The Local on Friday.

“We wanted to use what we used in the days of old.”

On to Germany and more interesting numbers from the London Telegraph:

Germany’s interest in Adolf Hitler at record levels

  • Germans more interested in Adolf Hitler than at any time since the Allied defeat of his Third Reich at the end of the Second World War, study finds

Germans are more interested in Adolf Hitler that at any time since the end of the Second World War, a new study has concluded.

The German Media Control research group, which monitors broadcasting, found that documentaries about Hitler are aired twice a day on German television channels and that books and films about the Nazi leader are being produced in record numbers.

It established that 242 programmes dealing specifically with Hitler had been shown on television during the first four months of 2013, while 500 other films and documentaries that had dealt with the Nazi era in general had also been aired.

Some 2,000 books on Hitler were published in Germany last year.

Next, France, and yet more interesting numbers from TheLocal.fr:

Is France really a nation of Eurosceptics?

A recent poll showed fewer than half of the French people believe the EU is a good thing for their country, which is a troubling trend for one of the union’s founders. The Local hit the streets to find out if the French really have become a nation of Eurosceptics.

With European parliament elections just weeks away the French may be having a British moment.

A poll commissioned by French daily Le Figaro recently found that only 44 percent of the French people think the European Union is good for their country, which appears at a first sight a dizzying plummet in one of the Union’s founders and an arch promoter of the project.

But the apparent turning of the tide against the EU has been growing for some time. A study last year showed the French public were rapidly falling out of love with Brussels. What was perhaps most alarming was that the widespread disaffection with the union was spreading quicker in France than in any other country on the continent.

TheLocal.fr again, and a decision sure to please the resurgent Right:

Landmark ruling bars lesbians from adopting

In a landmark decision a lesbian couple were barred from adopting a child, who was conceived through artificial insemination outside France. One gay-rights group slammed the decision saying “Children of LGBT families are the new bastards of the Republic”.

Judges in Versailles refused a request this week by a lesbian woman to adopt a 4-year-old child, who was conceived in Belgium by her partner, thanks to medically assisted procreation (MAP) or artificial insemination.

Currently in France methods of medically assisted procreation like IVF are reserved only for heterosexual couples, who have difficulty having children. However thousands of babies are thought to be born in France each year that were conceived abroad through articificial insemination.

On to the Alps, with TheLocal.ch:

Swiss have world’s highest prices: new study

Residents who find Switzerland to be a costly place to live now have more proof: the mountain country ranks as the most expensive nation on the planet, according to a new study from the World Bank.

The International Comparison Program report, released on Tuesday in the US, compares purchasing power and real expenditures of 177 countries using statistics from 2011.

Switzerland ranks ahead of Norway, Bermuda, Australia and Denmark in the table for highest “price level indexes,” the report says.

Portugal next, with an imprimatur from ANSAmed:

Portugal passes latest troika test

  • 2014 growth to be at 1% of GDP, says deputy PM

The Portuguese government announced on Friday that the so-called troika of international creditors (ECB,EU, and IMF) had approved the efforts undertaken by the country to comply with the aid program agreed three years ago in exchange for a 76-billion-euro loan.

‘’The twelfth assessment was positive,’‘ Deputy Prime Minister Paulo Portas said in a press conference, underscoring the ‘’climate of confidence coming from all European markets.’‘ Portas added that the international creditors had urged the government to push forward with reforms that the opposition, unions and most citizens – including military and police associations – are against.

The deputy prime minister underscored that at the June 2011 swearing in of Pedro Passos Coelho’s conservative government, interest rates on ten-year government bonds had stood at 10.6%, whereas they have now dropped to 3.6%.

The Portugal News charts a financial invasion:

Brits lead property sale surge

The sale of property in Portugal has recorded positive growth during the first quarter of 2014, the Chairman of National Real Estate Association (APEMIP) revealed this week, with the appetite of British buyers for Portuguese houses showing renewed signs of recovery.

Luís Lima explained that foreign investment played a considerable role in the improvement of the national real estate market, representing 14 percent of the total number of sales during the first three months of the year. However, estimates are that this percentage is substantially greater when solely taking into consideration the monetary value of property sales involving foreign buyers.

“A factor which helped boost figures this past quarter most was the increase in foreign investment and, for example, we started seeing more sales in the Algarve”, Luís Lima told the Lusa News Agency after the release of the association’s latest numbers.

The APEMIP chief put the latest “animated figures” for the first quarter down to mounting interest from foreign buyers, revealing that a total of 24,000 properties changed hands between January and March.

The Portugal News, with an anti-stricke strike:

Inmates launch hunger strike against strike

Fifteen inmates being held in the Monsanto maximum security prison have launched a hunger strike to protest against strike action being taken by prison guards.

According to a report by newspaper Diário de Notícias the inmates are taking action of their own in protest to the guards’ strikes which reduce their access to phone calls and visits.

On to Spain with El País, and that old hard times intolerance, taking the field:

Just another “isolated” racist incident?

  • The throwing of a banana at Barça’s Alves highlights the reluctance to tackle racial abuse in sport

The initial response of the authorities to the banana that was thrown at Barcelona’s Dani Alves during an away match at Villarreal on April 27 was that it was an isolated incident. The problem is that the history of sport, in Spain and around the world, is full of isolated incidents. And after a while, they all add up.

Which is not to say that in some countries action isn’t finally being taken against racism in sport. Donald Sterling, the owner of the Los Angeles Clippers basketball franchise, was recently banned for life from the game, and will likely be forced to sell up after he was recorded telling his girlfriend in no uncertain terms that he didn’t want her bringing black people to games.

“The attitude of the State Commission Against Violence and Racism is lazy and laissez-faire,” says Esteban Ibarra, a member of the two anti-racist organizations in Spain. “All that happens here is that we cover up racism and violence.” It is an attitude that many sports fans will recognize from the way the Spanish authorities have failed to deal with doping.

A provocative push with a purpose from TheLocal.es:

Spanish region to tax owners of empty homes

Spain’s Catalonia region is looking at taxing the owners of properties that have stood empty for more than two years in a bid to increase stocks of social housing.

Under the draft legislation, property owners would have to register properties that have been empty for more than two years as of January 1st 2015. They would then be taxed accordingly. The planned tax is targeted primarily at financial institutions and would be gradual, with annual taxes levied on each property of €500 ($690) to €16,500 depending on how many properties are owned.

The proposal will help breathe life into a market where 15,000 people lost their homes in 2013, Catalonia’s government said in a statement.

On to Italy and a truly gruesome crime from TheLocal.it:

‘Mafia is behind stolen anti-cancer drugs’

A highly organized crime ring is behind the distribution of stolen and fake anti-cancer drugs throughout Europe, an Italian official told the Wall Street Journal on Thursday.

Domenico Di Giorgio, the director of the prevention of counterfeiting at the Italian Medicines Agency, the pharmaceutical watchdog, said that “organized crime is certainly involved” in the racket, which has raised concern among pharmaceutical professionals that the drugs may be inefficient or even deadly.

Di Giorgio’s agency is currently carrying out an investigation into the matter along with the Italian antifraud squad, the Nuclei Antisofisticazioni e Sanità Carabinieri.

“There’s a central structure apparently based in Italy that commissions thefts of medicines in hospitals,” he was quoted by the newspaper as saying.

After the jump, the latest from Greece [and lots of it], boycotts and bailouts in the Ukrainian/Russia conflict, a provocative Israeli move, Brazilian drought and a political preemption, a seismic economic shift in Asia, Chinese financial developments [including a bubble alert], Japanese bankster boosterism, TPP demands, environemtnal woes, visions of epidemics, and the latest chapter of Fukushimapocalypse Now!. . . Continue reading