Category Archives: Wealth

Tom Toles: In the Hole from Student Debt


From the Washington Post editorial cartoonist:

Toles

Quote of the day: Confronting the conundrum


From George Monbiot, writing in the Guardian:

Let us imagine that in 3030BC the total possessions of the people of Egypt filled one cubic metre. Let us propose that these possessions grew by 4.5% a year. How big would that stash have been by the Battle of Actium in 30BC? This is the calculation performed by the investment banker Jeremy Grantham.

Go on, take a guess. Ten times the size of the pyramids? All the sand in the Sahara? The Atlantic ocean? The volume of the planet? A little more? It’s 2.5 billion billion solar systems. It does not take you long, pondering this outcome, to reach the paradoxical position that salvation lies in collapse.

To succeed is to destroy ourselves. To fail is to destroy ourselves. That is the bind we have created. Ignore if you must climate change, biodiversity collapse, the depletion of water, soil, minerals, oil; even if all these issues miraculously vanished, the mathematics of compound growth make continuity impossible.

>snip<

The inescapable failure of a society built upon growth and its destruction of the Earth’s living systems are the overwhelming facts of our existence. As a result, they are mentioned almost nowhere. They are the 21st century’s great taboo, the subjects guaranteed to alienate your friends and neighbours. We live as if trapped inside a Sunday supplement: obsessed with fame, fashion and the three dreary staples of middle-class conversation: recipes, renovations and resorts. Anything but the topic that demands our attention.

Michael Hudson dissects the European vote


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

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

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

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

From The Real News Network:

Voters Reject Traditional Left Parties In EU Parliament Elections

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

Is The South China Sea On The Brink Of War?


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

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

Via Journeyman Pictures:

Is The South China Sea On The Brink Of War?

Program notes:

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

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

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

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

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

Headlines: Beaucoup elections, and lots more


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

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

Children from China enroll in US summer academic camps

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

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

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

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

Colleges Rattled as Obama Seeks Rating System

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

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

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

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

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

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

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

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

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

‘Risk of deflation’ – ECB president

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

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

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

And our first electoral story, via EUbusiness:

Europe’s leaders urge EU reform after eurosceptic poll wins

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

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

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

More from United Press International:

European Parliament election results illustrate growing dismay with economic austerity measures

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

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

And ominous new additions from EUbusiness:

European Parliament set to usher in first neo-Nazis

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

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

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

EurActiv looks on the bright side:

Europe on course for ‘grand coalition’ after election

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

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

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

A different take from EUobserver:

New EP will struggle to find majorities

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

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

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

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

Nigel Farage: ‘My Dream Has Become Reality’

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

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

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

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

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

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

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

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

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

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

From the Independent, a loser struggles:

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

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

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

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

Ditto from Sky News:

EU Must Reform For Jobs And Growth – Cameron

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

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

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

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

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

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

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

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

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

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

Sinn Fein Surges in Ireland as Voters Punish Austerity

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

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

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

One response from Independent.ie:

Eamon Gilmore resigns as leader of Labour Party

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

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

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

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

Mayoral Candidates Speak Out On Mosque Issue

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

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

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

Sweden next, and harumphing from TheLocal.se:

‘Nationalists threaten EU openness’: Malmström

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

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

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

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

Rosneft to buy stake in Norway drill company

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

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

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

On to Copenhagen and more right wing triumphs via EurActiv:

Danish far right party wins in EU elections, doubles mandate

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

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

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

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

Merkel’s party tops vote but loses ground

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

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

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

Another winner from EUbusiness:

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

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

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

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

And a predictable reaction from EUbusiness:

German Jews shocked at far right’s EU success

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

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

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

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

More of the same from TheLocal.de:

Steinmeier ‘horrified’ at far-right seat win

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

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

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

From Deutsche Welle, a reminder:

Audi comes clean about its Nazi past

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

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

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

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

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

Belgian PM hands in resignation after defeat in elections

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

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

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

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

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

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

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

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

Predictable panic from Europe Online:

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

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

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

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

And a pickle for a predecessor from TheLocal.fr:

Cops grill Sarkozy ally over €400m state payout

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

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

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

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

EU Election: ÖVP defends first place

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

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

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

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

Off to Poland with New Europe:

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

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

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

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

Hungary next, via EUobserver:

Hungarian PM breaks ranks on Juncker

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

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

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

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

Next, Romania, via EUbusiness:

Ruling Social Democrats win Romania EU vote: official results

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

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

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

Portugal next, with EurActiv:

Socialists win in Portugal, stay second in Spain

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

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

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

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

El País takes us to Spain:

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

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

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

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

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

El País again, with another resignation:

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

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

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

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

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

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

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

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

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

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

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

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

Italian stocks surge after Renzi’s EU victory

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

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

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

Cheering up also-rans with ANSA:

Grillo tells M5S supporters not to lose heart

  • Leader tells supporters M5S opposition will do more

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

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

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

ANSA again, with more also-rans:

Berlusconi says FI remains ‘linchpin’ despite poor result

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

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

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

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

And some more Bunga Bunga woes from TheLocal.it:

Ex-MP ‘pilfered public money’ in Iraq deal

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

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

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

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

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

Quote of the day: Europe’s neoliberal curse


From Serge Halimi, writing in Le Monde Diplomatique:

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

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

Soybeans and indigenous culture destruction


Soybeans have been hailed as a miracle crop, and they’ve certainly made miraculous millions for UC Berkeley “bioentrepreneur” Chris Somerville [he of the $500 million BP-funded Energy Biosciences Institute], who sold his soy breeds to Monsanto before coming to Berkeley to head the BP program.

But what of those most impacted by the wonder crop, the Third World peoples whose lands are seized or purchased by Big Agra multinationals?

Deutsche Welle looks at one people deeply impacted by the corporate soy culture, the Aché of Parguay:

From Deutsche Welle:

Paraguay: The Downside of Soybean Consumption

Program notes:

Paraguay’s Atlantic Rainforest is home to the Aché. The indigenous people live from and with the forest as traditional hunters and gatherers. But pressure is growing on them: large-scale soya producers are offering them money for their land.

Only 13 percent of their original habitat in the Atlantic Rainforest remains. An Aché community of 40 families lives in the southern part of the forest. They still own 500 hectares of land. They’re surrounded by soybean plantations, but they, too, have to farm land to survive. A team from the World Wide Fund for Nature is helping the Aché preserve their habitat and way of life. They are encouraging the revival of yerba maté cultivation. The plant regenerates the forest floor, resulting in greater biodiversity.

Quote of the day: Academic trigger warnings


From the redoubtable Thomas Frank, writing for Salon:

The New York Times described a push at a handful of fancy colleges to require “trigger warnings” on class syllabi, which would alert sensitive students to reading materials that might cause them psychic distress. Note that “trigger warnings” have been actually applied at no college campus to any literary classic. The mere suggestion here and there is all that was needed to make this 100-proof pundit bait. One after another, the columnists piled on, mocking the hypersensitive and moaning about what kids these days have come to.

However, when I read the Times story—especially the part where trigger warnings are being proposed for any text that bears hints of something called “classism”—I felt strangely euphoric. I’d finally discovered a PC campus trend I could get behind.

“Warning labels!” I cried. “Classism! Great leaping Christ, that’s it!”

Yes! Elite university students must be warned about “classism”! Not on course syllabi or the cover of a book as though it’s comsymp lit or something. No, they need to see it in big red letters inscribed on those elite universities themselves — stamped on every tuition bill and financial aid form and diploma they produce, spelled out in the quadrangle pavement, flashing from a neon sign above every dormitory so no one can miss it:

“Warning: This place exists to enforce class distinctions.”

Perhaps those universities exist to educate, too. Perhaps professors here and there still concern themselves with whether students understand epic poems and differential equations. But that stuff is incidental. The university’s real purpose, as just about every modern college entrance guide will confirm, is to make graduates wealthy. Not too many employers really care what you studied there, or how well you did; they only care that you got in and that you got a diploma, our society’s one-and-only ticket into the middle class. Graduate from college and you have a chance of joining life’s officer corps. Quit after high school and it doesn’t matter how well you know your Nietzsche; you will probably spend the rest of your days as a corporal.

Headlines: Polls, trolls, laws, toxins, more


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

First, takin’ to the streets with RT:

World protests Monsanto grip on food supply chain

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

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

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

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

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

Sheriff highlights mental-health shortcomings after California rampage

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

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

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

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

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

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

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

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

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

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

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

Past Republican donors rebuffing GOP candidates to back Jerry Brown

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

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

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

From the Guardian, the results those big bucks produce:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Britain next, with BBC News:

UKIP heading for clear victory in UK European elections

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

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

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

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

One outcome, via the Guardian:

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

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

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

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

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

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

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

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

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

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

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

Scandinavia next, first with Bloomberg:

Voters Punish Reinfeldt as Protest Groups Gain in Nordic EU Vote

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

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

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

On to Copenhagen with EUbusiness:

Anti-immigrant Danish party wins EU vote: exit poll

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

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

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

Germany next, first with TheLocal.de:

Eurosceptics and SPD celebrate EU vote gains

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

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

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

On to Belgium with the Associated Press:

Belgium faces tough coalition talks after vote

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

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

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

France next, first with Reuters:

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

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

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

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

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

More from Bloomberg:

French National Front Victory Needs EU Response, PM Valls Says

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

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

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

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

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

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

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

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

Then on to Vilnius with BBC News:

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

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

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

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

Budapest next with EUbusiness:

Hungary’s right-wing dominates EU polls

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

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

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

And on to Slovakia with EUobserver:

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

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

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

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

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

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

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

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

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

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

Spain’s major parties lose out in Euro elections

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

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

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

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

A critical regional result via EUbusiness:

Separatist party wins EU vote in Spain’s Catalonia

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

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

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

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

Renzi’s PD projected to land big win

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

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

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

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

Lebanon agrees to extradite Berlusconi ally

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

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

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

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

Headlines: Bubbles, bull, bile, pols, threatcetera


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

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

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

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

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

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

Poor Americans Direct 40% of Their Spending to Housing Expenses

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

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

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

While The Hill finds cause for rejoicing:

Bankers breathe sigh of relief as Tea Party power fizzles

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

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

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

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

Californians Overwhelmingly Support a Ban on Fracking

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

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

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

Governor’s teacher pension plan shocks school districts

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

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

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

From Bloomberg, a dire warning?:

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

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

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

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

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

Arizona residents evacuate as fierce wildfire rages

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

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

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

CNN again:

Wildfire scorches nearly 80,000 acres in Alaska

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

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

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

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

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

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

The results were eye-opening.

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

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

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

Barclays Bank fined £26m for gold price failings

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

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

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

The Independent sets a precedent:

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

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

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

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

And Sky News covers hard times populism resurgent:

Parties Reel From UKIP Election Success

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

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

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

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

One reaction from EUbusiness:

British deputy PM faces calls to quit

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

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

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

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

Greens, feminists surge ahead of EU vote ‘thriller’

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

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

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

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

From BBC News, more of that hard times intolerance:

Brussels fatal gun attack at Jewish museum

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

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

A fourth person was seriously wounded, emergency services said.

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

Germany next, and political idiocy rebuked from EUbusiness:

Schulz mocked for ‘German’ appeal in EU election ad

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

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

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

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

From Reuters, deals undone:

Germany stops numerous arms exports, risks compensation fees: report

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

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

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

And TheLocal.de protests:

Thousands protest at Erdogan German rally

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

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

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

On to Eastern Europe and epidemic apathy from New Europe:

Record abstention in Chech Republic reaches 80%, exit poll

  • Right wing TOP 09 leads with 18%

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

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

Spain next, and significant symbolism from the Guardian:

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

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

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

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

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

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

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


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

House bans Pentagon from preparing for climate change

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

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

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

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

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

Another reason, from CNBC:

25% of Americans saving $0 for retirement

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

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

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

Bloomberg News excludes:

No Recovery for Workers in the Middle

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

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

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

From Reuters, you gotta beef with that?:

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

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

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

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

China Daily hustles:

US hedge fund raises money from wealthy Chinese to invest abroad

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

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

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

China Daily again, with a visitor en route:

2.1m Chinese to visit US this year

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

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

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

A central bankster warning from Reuters:

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

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

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

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

Trust us, they say. Via EUbusiness:

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

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

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

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

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

From EUbusiness, sure, right:

Germany’s Schaeuble denies austerity sparked populist backlash

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

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

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

On to Britain and the right rising from BBC News:

Nigel Farage: UKIP to be serious players at general election

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

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

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

More from the Independent:

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

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

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

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

The Guardian recommends, righteously:

Jail fraudsters for longer, judges told

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

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

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

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

The London Telegraph scents a bubbly deflation:

London’s property boom is losing its fizz

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

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

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

From the Guardian, a fracking letdown:

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

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

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

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

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

More from the Independent:

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

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

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

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

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

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

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

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

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

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

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

On to Norway and a rejection from TheLocal.no:

Norway scuppers China tycoon’s Arctic plan

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

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

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

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

Ageing Germany lowers retirement age

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

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

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

From Deutsche Welle, diplomatic phrasing:

German business confidence takes a breather

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

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

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

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

Süddeutsche Zeitung gets behind the wheel:

What’s Driving Gulf Cash To European Holdings

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

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

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

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

French military top brass threaten to quit over cuts

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

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

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

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

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

Marine Le Pen and Golden Dawn ‘flirting’

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

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

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

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

Austrian millionaires richer than ever before

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

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

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

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

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

Property prices plunge in Geneva region: report

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

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

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

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

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

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

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

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

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

El País delivers the grim working class reality:

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

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

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

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

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

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

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

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

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

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

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

Grillo and Renzi Clash as Berlusconi Speaks in Rome

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

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

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

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

From TheLocal.it, political realism?:

Red light district wins Rome mayor’s support

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

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

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

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

And fueling around with TheLocal.it:

ENI clinches Gazprom deal to cut gas prices

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

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

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

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

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


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

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

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

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

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

Charts of the day: Concentration of wealth


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

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

BLOG Wealtbh bar

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

BLOG Wealth warren

Headlines: EcoWarnings, eCons, lies, more


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

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

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

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

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

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

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

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

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

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

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

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

Brown’s office had no comment Wednesday.

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

As Central Valley fog disappears, fruit, nut crops decline

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

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

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

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

East Bay sheriffs to release immigrants held for feds

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

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

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

From the Los Angeles Times, a legal revolt:

Counties sue narcotics makers, alleging ‘campaign of deception’

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

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

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

BBC News hauls out the chopper:

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

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

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

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

Hypocrisy between the buns, via the Guardian:

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

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

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

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

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

A thoroughly tamed electorate, via EUbusiness:

Muted US opposition to Atlantic trade treaty

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

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

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

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

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

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

Study: Organized Crime Launders Billions Through Bets

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

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

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

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

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

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

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

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

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

On to Europe, starting with election news from EUobserver:

EU elections under way in Netherlands and UK

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

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

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

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

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

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

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

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

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

CNNMoney casts a different slant:

Europe’s own ‘tea party’ risk

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

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

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

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

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

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

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

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

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

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

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

Norway to ‘work harder’ to sell whale to Japan

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

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

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

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

Early Dutech electoral indications from euronews:

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

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

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

Germany next, and creeping imperialism from New Europe:

German cabinet adopts new Africa strategy

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

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

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

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

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

France’s left is through with Hollande

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

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

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

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

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

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

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

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

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

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

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

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

French cops to bulldoze Calais migrant camps

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

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

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

From the Guardian, a new supergrass:

Camorra mafia ‘super boss’ Antonio Iovine turns state witness

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

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

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

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

Reactions from the Independent:

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

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

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

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

TheLocal.it calls for lighting up:

Rome mayor backs decriminalizing cannabis

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

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

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

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

From ANSA.it, real GDP:

Economic value of prostitution in 2014 GDP accounts

  • Statistical agency to measure illegal drugs, cigarettes

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

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

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

From TheLocal.it, woes for Bunga Bunga Junior:

Prosecutors seek jail term for Berlusconi’s son

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

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

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

Striking news from TheLocal.it:

Italy’s newsstands set to empty as strike hits

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

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

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

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

Quote of the day: Either reform or bloodshed


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

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

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

Kochs wage war on Detroit’s pension-holders


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

The story from The Young Turks:

The Koch Brothers Fix Detroit’s Problems By Destroying Pensions

Program notes:

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

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

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

The profit motive: Killing the post office


Neoliberals at home and abroad are waging war against the very notion of the publicly funded post office, with privatization campaigns measures underway in Britain, Canada, and the U.S.

In this Breaking the Set segment, Abby Martin explores some of the reasons why the Koch Brothers and their pals are salivating over the thought of capturing the U.S. mails, and conducting a slow execution by the political version of a death of a thousand cuts.

From Breaking the Set:

How Congress is Intentionally Bankrupting the Postal Service

Program notes:

Abby Martin speaks with RT Political Commentator, Sam Sacks, about why Congress intentionally bankrupted the US Postal Service and how the push to corporatize the mail industry is hurting us all.

Headlines II: Pols, crooks, corps, & polluters


And so much, much more, including the latest edition of Fukushimapocalypse Now! In today’s collection from the realms of political, law, economics, and the environment.

First up, a slowdown on the road to another skid-greasing for corporocrats and banksters from Kyodo News:

TPP ministers fail to set timeline for striking deal

Ministers in the 12-country Trans-Pacific Partnership free trade talks fell short of setting a clear timeline for ending their long-running negotiations as they wrapped up their two-day meeting Tuesday in Singapore, although they stressed that progress has been made on tariff issues.

“We cemented our shared views on what is needed to bring negotiations to a close,” the ministers said in a joint statement issued following the meeting, but it was unclear what outcome was yielded during their gathering.

The ministers did decide that the chief negotiators from the member countries will meet in July to further accelerate talks but they did not clarify where the meeting will be held.

Money launderers get the ticket, via  Reuters:

Credit Suisse fined $2.5 billion after pleading guilty to U.S. tax charge

Credit Suisse has agreed to pay a $2.5 billion fine to authorities in the United States for helping Americans evade taxes after becoming the largest bank in 20 years to plead guilty to a U.S. criminal charge.

The bank’s guilty plea resolves its long-running dispute with the United States over tax evasion, but could have implications for the clients and counterparties that do business with the group.

Credit Suisse said it had not seen a material impact in the past few weeks on its business, and that clients faced no legal obstacles from doing business with it despite the guilty plea.

Other banksters/other woes, from the Irish Times:

Drumm facing litany of fraud allegations at bankruptcy trial

  • Document detailing dozens of allegations against former Anglo boss submitted to US court

Former Anglo Irish Bank chief executive David Drum will face a litany of fraud and perjury allegations when his bankruptcy trial begins in Boston tomorrow.

A list of “itemised allegations” against the 47-year-old Dubliner, which include accusations of fraud, concealment and lying under oath, has been submitted to the court where he filed for bankruptcy in 2010.

The document was submitted by the plaintiffs in the trial, bankruptcy trustee Kathleen Dwyer, and the Irish Bank Resolution Corporation, his former employer.

From iMediaEthic, without comment:

Nat’l Journal dumps comments section after ‘worst kind of abusive, racist, and sexist name-calling imaginable’

The National Journal is getting rid of most online comments because it has been filled with “the worst kind of abusive, racist, and sexist name-calling imaginable.”

National Journal’s editor-in-chief Tim Grieve announced the decision in a May 16 post,  explaining that there was no civil discussion on topics and it was getting worse.

“The debate isn’t joined. It’s cheapened, it’s debased, and, as National Journal’s Brian Resnick has written, research suggests that the experience leaves readers feeling more polarized and less willing to listen to opposing views,” Grieve wrote.

From China Daily, a float from abroad:

More Chinese companies choose US as destination to go public

A senior vice president with NYSE Euronex says that more and more Chinese enterprises are attracted to do initial public offering (IPO) in the United States and predicts that around 15 to 20 of them could go public in the States this year.

“What I’ve seen is a nice building process from two years ago when we only had two IPOs. One of them, VIP (Vipshop Holdings Limited), was listed here and did extremely well,” said David A. Ethridge, senior vice president and head of the Capital Markets Group at NYSE Euronext, in a recent interview with Xinhua.

Shares of Vipshop, an online discount retailer, were traded at around $165 per share Monday, compared to $6.50 per share since it announced its IPO in March 2012. China’s social gaming portal YY Inc, which was listed on Nasdaq in November 2012, also saw its shares surge to around $56 per share from its IPO price of $10.50 apiece.

From the Asbury Park Press via USA TODAY, maybe retirees will have to get a bridge loan:

Gov. Christie cuts N.J. pension payments

Gov. Chris Christie is slashing the contributions scheduled to be made to New Jersey public workers’ pension funds by nearly $2.5 billion over the next 14 months to deal with a revenue shortfall facing the state budget.

Christie announced today at the Statehouse that he will make a $696 million payment into the pension funds this year, rather than $1.58 billion. He said he will put in $681 million next June, instead of the $2.25 billion that would have been made if the terms of the pension reforms he signed into law in 2011 were followed.

Christie said the payments cover the costs accrued during his administration for active employees but exclude the unfunded liability accrued under past governors and legislatures. He said that means the unfunded liability for active workers will not increase.

From Network World, corporations benefits, public services lose. Call it a neoliberal wet dream:

Driverless cars could cripple law enforcement budgets

  • Local government have long looked to speeding tickets to increase revenue. What will they do when autonomous cars stick to the speed limit?

Shortly after the state of Washington voted to legalize recreational marijuana late last year, opponents made a very interesting, if somewhat counterintuitive, argument against legalized pot – law enforcement would miss out on the huge revenue stream of seized assets, property, and cash from pot dealers in the state.

Justice Department data shows that seizures in marijuana-related cases nationwide totaled $1 billion from 2002 to 2012, out of the $6.5 billion total seized in all drug busts over that period. This money often goes directly into the budgets of the law enforcement agencies that seized it. One drug task force in Snohomish County, Washington, reduced its budget forecast by 15% after the state voted to legalize marijuana, the Wall Street Journal reported in January. In its most fruitful years, that lone task force had seen more than $1 million in additional funding through seizures from marijuana cases alone, according to the report.

Naturally, this dynamic is something law enforcement either is or should already be preparing for as driverless cars make their way onto the roads. Just as drug cops will lose the income they had seized from pot dealers, state and local governments will need to account for a drastic reduction in fines from traffic violations as autonomous cars stick to the speed limit.

From the Associated Press, gladiator-doping alleged:

Ex-players: NFL illegally used drugs

A group of retired NFL players says in a lawsuit filed Tuesday that the league, thirsty for profits, illegally supplied them with risky narcotics and other painkillers that numbed their injuries for games and led to medical complications down the road.

The league obtained and administered the drugs illegally, without prescriptions and without warning players of their potential side effects, to speed the return of injured players to the field and maximize profits, the lawsuit alleges. Players say they were never told about broken legs and ankles and instead were fed pills to mask the pain. One says that instead of surgery, he was given anti-inflammatories and skipped practices so he could play in money-making games. And others say that after years of free pills from the NFL, they retired from the league addicted to the painkillers.

Steven Silverman, attorney for the players, said the complaint was filed Tuesday in U.S. District Court in San Francisco, and a copy was shared with The Associated Press ahead of the filing.

The complaint names eight players, including three members of the Super Bowl champion 1985 Chicago Bears: Hall of Fame defensive end Richard Dent, offensive lineman Keith Van Horne, and quarterback Jim McMahon. Lawyers seek class-action status, and they say in the filing that more than 400 other former players have signed on to the lawsuit.

From the San Francisco Chronicle, both a story and a metaphor for our times:

Train hits, kills woman wearing earphones in San Leandro

An 18-year-old woman using earphones while talking on her cell phone was struck and killed Monday by an Amtrak train in San Leandro after a witness tried unsuccessfully to warn her of its approach, police said.

On a similar vein, from north of the border via CBC News:

Physical inactivity of Canadian kids blamed on ‘culture of convenience’

  • Parents encouraged to weave opportunities to move and play with their kids into daily life

Canada’s “culture of convenience” means children and youth sit too much and move too little, in gym class, on the playground, and while travelling to and from school, according to a new global comparison.

Tuesday’s report, “Is Canada in the running?”, from Active Healthy Kids Canada grades kids from 15 countries on their physical activity levels in various areas.

Europe next, and the usual suspects, doing the usual via BBC News:

JPMorgan, HSBC and Credit Agricole accused of euro rate-fixes

The European Commission has accuses JPMorgan, HSBC and Credit Agricole of colluding to fix a key euro benchmark borrowing rate – Euribor.

JP Morgan and HSBC will fight the charges. Credit Agricole will study the European Commission’s findings. Penalties for the guilty are up to 10% of annual revenue.

Euribor is a cousin to Libor, which is used to set trillions of dollars of financial contracts from complex financial transactions to car loans.

And the electoral divide, with more to come next weekend, via EUbusiness:

Conservatives narrowly lead Socialists in EU vote: poll

Conservatives across Europe hold a narrow lead over their Socialist rivals in the upcoming European Parliament elections but eurosceptics and more radical parties will make significant gains, a poll showed Tuesday.

The PollWatch2014 survey issued as EU citizens prepare for the May 22-25 ballot put the conservative European People’s Party (EPP) on 217 seats against 201 for the Socialists and Democrats (S&D).

While that would leave them still the two biggest parties in the new 751-seat assembly, the EPP would be down from 274 seats and the S&D up only marginally from the previous 196.

In third place, the centrist Liberals (ALDE) would fare especially badly, falling to 59 seats from the current 83, PollWatch2014 said.

A predictable alarm, via Greek Reporter:

Credit Agricole: SYRIZA’s Victory May Cause Shock to EU markets

According to Bloomberg news agency, Mark McCormick, a currency strategist at the French Credit Agricole, sent a to the bank’s clients, stating that a possible victory of SYRIZA in the euro elections might cause a shock to the European markets.

McCormick claimed that a possible victory by SYRIZA can cause a  shock to Europe’s assets (bonds, equities, interest bearing securities, etc.) at a time when Greece is trying to implement reforms.

McCormick, according to Bloomberg, stated that the European elections should not be underestimated given that their results will have an impact on the above-mentioned assets.The increasing popularity of anti-European parties constitutes a threat to the progress that has been achieved in financial reforms. The greatest danger lies in Greece, which could be led to early elections if the Greek main opposition party wins a majority in the European elections.

And the lobbying will commence, via EurActiv:

Google cannot be broken up without new legislation, says EU Competition Commissioner

Google cannot be broken up into smaller companies without new EU legislation, the European Commission said today (20 May), after detailing two potential new antitrust investigations into the internet giant.

Competition Commissioner Joaquín Almunia was responding to comments made earlier this week by German’s Economy Minister Sigmar Gabriel,  who said Google may have such a dominant market position that a break-up had to be “seriously considered.” Existing competition law was not powerful enough to split up the business, Almunia said.

The California-based company may yet face a separate antitrust investigation to the one ongoing since November 2012. Open Internet Project, a group of 400 European digital market members, made a different complaint [PDF] on Friday.

Britain next, and the bubble continues with BBC News:

UK house prices up 8% in a year, says ONS

UK house prices rose by 8% in the year to the end of March, official figures show, as the prime minister says he will consider changes to Help to Buy.

The annual increase slowed compared with a 9.2% year-on-year price rise to the end of February.

However, the latest data from the Office for National Statistics (ONS) showed that the annual property price increase in London stood at 17%. Excluding London and the South East of England, prices were up by 4.7%.

On a related front, via the London Telegraph:

Lloyds acts to curb ‘inflationary’ London housing

  • UK’s biggest mortgage provider, which also owns Halifax, will not lend any more than four times those of incomes on properties over £500,000

The UK’s biggest mortgage provider, Lloyds Banking Group, has taken radical action in the face of what it called “inflationary pressures” in London’s housing market, tightening up the requirements for high-value property purchases.

The state-backed lender said that on lending of over £500,000, it would not approve mortgages in which consumers are borrowing more than four times their incomes.

The announcement is the first major step taken by lenders to cool rapidly-rising house prices in the capital, where prices have risen by 17pc in the last year – more than double the national average. Lloyds said the policy would be applied nationally, but was deliberately targeted at London.

On to Germany and the predictable, via TheLocal.de:

‘Germany can deny foreigners benefits’

Germany can refuse to give unemployment benefit to EU citizens it believes are “welfare tourists”, according to a European ruling on Tuesday.

The advocate general of the European Court of Justice said the state could reject applications for German unemployment benefit Hartz IV from foreigners from other EU countries to prevent abuse of the system and “welfare tourism”.

The Luxembourg court will make its ruling over the next few months, but normally follows the advocate general’s advice.

The decision was made in a high-profile case of a 24-year-old Romanian woman and her son who have lived in Germany since 2010. The woman’s local job centre in Leipzig refused to give her Hartz IV, prompting her to take legal action.

And from Deutsche Welle:

Migration to Germany skyrockets

The sovereign debt crisis is driving a surge in migration to Germany. New figures reveal hundreds of thousands of foreign workers flocked to Europe’s largest economy in 2012 – a nearly 40 percent jump in just a year.

The number of people migrating to Germany jumped nearly 40 percent in a year, according to data released Tuesday by the Organization for Economic Cooperation and Development, a coalition of mostly developed nations.

Driven mainly by economic uncertainty in the euro zone’s periphery, which includes weaker nations that are still recovering from the global financial crisis, some 400,000 people flocked to Germany in 2012, the latest year for which figures were available.

“We can clearly speak about a boom of migration to Germany without exaggeration,” Thomas Liebig, an OECD migration expert, said as the group released its latest migration outlook just days ahead of European elections in which immigration has been hotly debated.

More from Reuters:

Germany becomes world’s top migration spot after U.S.: OECD

Germany has become the world’s second most popular destination for immigrants after the United States, attracting many southern Europeans driven from the ravages of the euro zone financial crisis to overtake Canada and Australia.

Germany soared to second place in the 2012 in a survey of permanent migration published by the Organization for Economic Cooperation and Development (OECD) on Tuesday. It ranked eighth in 2009.

“This really is a boom – without any exaggeration … no other OECD country experienced such a rise,” said Thomas Liebig, an expert on international migration at the Paris-based OECD.

Vienna next, and just say Nein!?, From TheLocal.at:

Vienna mayor wants right wing group banned

Vienna’s Mayor Michael Häupl (SPÖ) has called for a ban on a right wing group calling themselves Die Identitaere Bewegung (The Identity Movement).

Last Saturday a march by the group in central Vienna resulted in clashes between protesters and police after it was obstructed several times by a left-wing counter-demonstration.

“A group like this should have been banned a long time ago,” Häupl said at his weekly press conference. “This is a neo-fascist organization that quite clearly falls under the prohibition act,” he added.

The Verbotsgesetz (Prohibition Act) is an Austrian law which banned the Nazi Party and aimed to suppress any potential revival of Nazism.

While parts of Spain face unparalleled drought, at the other end of Europe with euronews:

Bosnia flood destruction ‘as bad as the war’

The government in Bosnia says more than 1 million people, or a quarter of the population, has been affected by flooding and landslides, comparing the destruction to that of the country’s war in the 1990s.

Some reports speak of around 50 deaths in Bosnia and in neighbouring Serbia and Croatia amid the worst rainfall to hit the Balkans in living memory.

Having survived the war and built a new life, many have lost everything.

Spain next, whipping up the religious for a neoliberal advantage with El País:

Abortion clinics report spike in vandalism

  • Anti-abortion activists step up pressure ahead of government changes to legislation

Anti-abortion groups are getting more radical in their rhetoric and in their actions.

In the face of government delays, these groups have been making increasingly vocal demands for legislative reform to curtail access to pregnancy terminations.

But now, abortion clinics are also reporting several instances of vandalism against their premises, according to formal complaints to which EL PAÍS has had access.

El País again, this time weith another outburst of that hard times intolerance:

Racist gestures at soccer game cost Barcelona employee her job

  • Llagostera fan also barred from her team’s stadium for performing monkey actions at black player

A woman has lost her job and been barred from a soccer stadium for life after she was caught on camera making racist gestures at a Spanish second division game between Llagostera and Racing Santander on Sunday.

Video footage of the match clearly shows the Llagostera fan making monkey actions at Mamadou Koné, a black player from the Ivory Coast who plays for Racing.

The images immediately spread around the social networks, and the consequences soon followed. Llagostera president Isabel Tarragó has barred the woman, who is not a club member, from ever returning to its stadium.

El País again, with more:

Jewish community to file complaint after anti-Semitic tweets posted from Spain

  • Offensive comments appeared on Twitter after basketball team Maccabi Tel Aviv beat Real Madrid
  • The victory on Sunday saw the Israeli side win the Euroleague title

The Jewish community in the northeastern Spanish region of Catalonia has taken action over anti-Semitic messages posted on social networking sites after Israeli basketball team Maccabi Tel Aviv beat Real Madrid to win the Euroleague title on Sunday.

After the game in Tel Aviv was over, nearly 18,000 offensive messages appeared on Twitter, according to Jewish associations, which have announced they are planning to file a complaint with the state attorney on Tuesday. According to sources from the Jewish community, the complaint will include tweets from five users of the micro-blogging site – along with their full names – which, the complainants will argue, constitute incitement of hatred against Jews.

Portugal next, and a Troikarch release from ANSAmed:

Portugal officially out of Troika bailout plan

  • Without seeking precautionary credit line, premier says

Portugal officially exited on Monday the bailout programme drafted by the Troika (EU-ECB-IMF) under which it obtained in 2011 a loan worth 79 billion euros provided it implemented a number of austerity measures to cut expenditure.

Prime Minister Pedro Passos Coelho announced the country will ‘’not seek further security measures, although the road ahead is still long to get out of the crisis’‘.

The premier added that ‘’the government’s priorities are economic and employment recovery’‘.

Italy next, starting with Bunga Bunga bloviation from TheLocal.it:

‘Did you call Merkel an ‘unf**kable lard-arse’?’

Jeremy Paxman, the BBC’s hard-nosed interviewer, asked Italy’s gaffe-prone former prime minister Silvio Berlusconi whether he called German Chancellor Angela Merkel an “unf**kable lard-arse” in an interview that will be aired on Tuesday night.

Berlusconi, who is currently undertaking community service at a home for Alzheimer’s patients for his tax fraud conviction, reportedly said Merkel was a “culona inchiavabile” (unf**kable lard-arse) during a wiretapped conversation with a man accused of supplying prostitutes to the former prime minister’s “bunga bunga” parties in July 2011.

More bloviatin’ from the Bunga Bunghole via ANSA:

Berlusconi calls Grillo a ‘killer’

Vitriol escalates with reference to manslaughter conviction

Ex-premier Silvio Berlusconi on Tuesday called Beppe Grillo, the leader of the anti-establishment 5-Star Movement (M5S), a “killer” as the political venom ahead of Sunday’s European elections reached a new high. Berlusconi was referring to Grillo’s 1980 manslaughter conviction for a car accident in which he was the driver and three people died.

Grillo has never stood personally in elections because he says people with criminal records should not be in parliament, although he is still the undisputed leader of the M5S from outside the buildings of power.

The comedian-turned-politician has been brutally critical of three-time premier Berlusconi, who was ejected from parliament last year and is currently doing community after a definitive tax-fraud conviction last year, over his many judicial problems.

After the jump, it’s on to Greece and more electoral mayhem, a Ukrainian pullback, Brazilian jitters and an Argentine memory hole, a case of Thai anxiety, Chinese real estate woes, environmental alarms, and Fukushuimapocalypse Now!. . .
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Headlines: Spies, pols, hacks, zones, drones


We’re reversing the normal sequence of headline posts and starting with today’s very newsy tales from the dark side, featuring major developments in Asia [after the jump], drones, the SinoAmerican EspioCyberwar, and a whole lot more.

But first, the toke’s on J. Edgar, with Fibbie pragmatism triumphant, via The Verge:

The FBI admits it might have to toke up to fight cybercrime

As the FBI looks to hire more cybersecurity agents, it’s running into a big problem: the siren song of marijuana. The FBI has a no-tolerance policy for employees using illegal drugs, but new statements by director James Comey suggest the agency is considering loosening that policy to attract employees from the cybersecurity community.

To hear Comey tell it, it’s a talent pool that’s notorious for rampant weed-smoking. “I have to hire a great work force to compete with those cybercriminals,” Comey told an audience at the New York City Bar Association, “and some of those kids want to smoke weed on the way to the interview.”

The bureau’s weed problem is particularly severe given the rise of legal marijuana use within the US, implicating many potential FBI hackers along the way. As a result, Comey said he was “grappling with the issue” of how the bureau’s policies might be amended.

From The Age, suspicions confirmed:

Assange targeted by FBI probe, US court documents reveal

WikiLeaks publisher Julian Assange remains the subject of an active criminal investigation by the United States Justice Department and Federal Bureau of Investigation, newly published court documents reveal.

Papers released in US legal proceedings have revealed that a “criminal/national security investigation” by the US Department of Justice and FBI probe of WikiLeaks is “a multi-subject investigation” that is still “active and ongoing” more than four years after the anti-secrecy website began publishing secret US diplomatic and military documents.

Confirmation that US prosecutors have not closed the book on WikiLeaks and Mr Assange comes as a consequence of litigation by the US Electronic Privacy Information Centre to enforce a freedom of information request for documents relating to the FBI’s WikiLeaks investigation.

Justice Department lawyers last month told the US District Court in Washington DC that there had been “developments in the investigation over the last year.”  In a document filed with the court on Monday, the US Government further affirmed that the “main, multi-subject, criminal investigation of the [Department of Justice] and FBI remains open and pending” making it necessary “to withhold law enforcement records related to this civilian investigation.”

There’s just no rest for the Wiki-ed, via South China Morning Post:

WikiLeaks vows to reveal second country where NSA is recording all mobile phone calls

  • WikiLeaks to name second country where the NSA is said to be recording the content of phone calls, despite warnings from Glenn Greenwald that this could “lead to deaths”

WikiLeaks has pledged to reveal the name of a second country that is having virtually all of its mobile phone calls recorded by the US National Security Agency, despite a warning that leaking the information could “lead to deaths”.

The pledge came after The Intercept revealed that the Bahamas and one other country were having most of their mobile calls recorded and stored by a powerful NSA program called SOMALGET. While the Bahamas was named, the identity of the mystery second country was kept hidden.

Greenwald, who first broke the Edward Snowden story to the world, had said on Twitter the decision not to reveal the name was made because “we were *very convinced this 1 would –> [lead to] deaths”.

Meanwhile, Truthdig raises a crucial question:

What’s the Point of a Source Protection Law That Wouldn’t Protect Chelsea Manning or Edward Snowden?

Laws are bad when they don’t do what they are meant to and even worse when they cause harm instead. The journalist-source protection law being debated by Congress—the Free Flow of Information Act (FFIA or “federal shield law”) fails in both respects. Despite being pushed by media organizations after Associated Press reporters and other journalists were served court orders last summer, it is doubtful that the proposed law will meaningfully protect anyone. Instead, it sets the stage to punish whomever the government decides are “illegitimate” journalists.

Indeed, any outlet committed to giving voice to whistle-blowers—such as The Intercept or WikiLeaks—is not considered a “covered journalist” under the measure. Sen. Chuck Schumer, D-N.Y., who drafted the bill, conceded that The Intercept’s Glenn Greenwald, whose coverage of whistle-blower Snowden’s releases won a Pulitzer for The Guardian, would probably not be covered. The FFIA would fail to protect Snowden, or Manning, who provided evidence of war crimes and military cover-ups to WikiLeaks. Both sparked unprecedented public debates on government accountability and suffered the full wrath of the federal government. In other words, they are precisely the sources we need a shield law to protect.

The FFIA does not include those “whose principal function, as demonstrated by the totality of such person or entity’s work, is to publish primary source documents that have been disclosed to such person or entity without authorization.” This is colloquially called the WikiLeaks clause. But The Intercept is also in trouble owing to what its new editor-in-chief, John Cook, described in mid-April as a “commitment to continue the work of reporting on, publishing, and explicating” Snowden’s releases.

Techdirt, as usual, spots the ironic:

Keith Alexander: We Need More Spying In The Future Because All Of Our Previous Spying Has Only Increased The Number Of Terrorist Attacks

  • from the No-Such-Agency:-no-such-thing-as-‘too-much-surveillance’ dept

The New Yorker has published excerpts of a lengthy interview with retired NSA head Gen. Keith Alexander. Along with the usual defenses of the surveillance apparatus he ran for eight years (with his fiery “collect it all” attitude), Alexander makes the case for continued pervasive surveillance while admitting the last decade-plus of spying hasn’t made the US — or the world — any safer.

Al Jazeera America acts symbolically:

California bill would require judge’s warrant for government spying

  • Measure passes state Senate with just one opposing vote; proponents argue surveillance is unconstitutional

A bill in California’s state legislature would require the federal government to have a warrant from a judge if it wants state officials to cooperate when federal agencies search residents’ cellphone and computer records.

The bill, which passed the state Senate with just one opposing vote this week, was introduced in the wake of information leaked by former National Security Agency contractor Edward Snowden, revealing massive internal surveillance of U.S. citizens by the NSA.

“The Fourth Amendment to the U.S. Constitution is very clear. It says the government shall not engage in unreasonable search and seizure,” said the bill’s author, Democratic State Sen. Ted Lieu, of Torrance. “The National Security Agency’s massive and indiscriminate collecting of phone data on all Americans, including more than 38 million Californians, is a threat to our liberty and freedom.”

The bill wouldn’t bar the NSA or any other federal government agency from continuing to spy. But it would prohibit the state from participating in that surveillance or providing material support to the agencies involved.

And on to that conveniently timed [for Washington] SinoCyberwar, first from Global Times:

China summons US ambassador over indictment against Chinese military officers

Chinese Assistant Foreign Minister Zheng Zeguang summoned US Ambassador to China Max Baucus on Monday night, lodging a complaint with the US over its indictment against five Chinese military officers despite China’s protests, according to a press release by the Foreign Ministry Tuesday morning.

The United States seriously violated the norms of international relations, breached China-US cooperation in cyber security and badly hurt China-US ties by fabricating information and indicting Chinese military officers on allegations of cyber theft, Zheng said.

China expressed strong indignation and opposition to the move by the United States, he added.

More from South China Morning Post:

China warns Washington it could take ‘further action’ over US hacking charges

  • The US Justice Department on Monday indicted five members of the Chinese military on charges they stole US secrets through hacking to aid state-owned companies. Beijing quickly rejected the claims

The US Ambassador to China, Max Baucus, met with Zheng Zeguang, assistant foreign minister, shortly after the United States charged the five Chinese, accusing them of hacking into American nuclear, metal and solar companies to steal trade secrets.

Zheng “protested” the actions by the United States, saying the indictment had seriously harmed relations between both countries, state news agency Xinhua said.

Zheng told Baucus that depending on the development of the situation, China “will take further action on the so-called charges by the United States”.

Sky News raises the obvious defense:

China Angry Over US Spy Charges ‘Hypocrisy’

  • The United States is accused of “double standards” on cyber security after five Chinese officers are charged over alleged hacking.

Geng Yansheng, a Chinese defence spokesman, said the steps taken by the United States had “severely damaged the mutual trust” between the two countries.

“From Wikileaks to the Snowden incident, America’s hypocrisy and double standards on issues of cyber security are abundantly clear,” he said. “The Chinese military is a severe victim of America’s behaviour.

“According to statistics, the servers used by the Chinese military have been widely attacked by foreigners and according to the IP addresses, a significant number of them come from America.”

And then, inevitably, came this, from Sina English:

China publishes evidence of US cyber attack

A spokesperson for China’s State Internet Information Office on Monday published the latest data of US cyber attack, saying that China is a solid defender of cyber security.

The US is the biggest attacker of China’s cyber space, the spokesperson said, adding that the US charges of hacking against five Chinese military officers on Monday are “groundless”.

Latest data from the National Computer Network Emergency Response Technical Team Coordination Center of China (NCNERTTCC) showed that from March 19 to May 18, a total of 2,077 Trojan horse networks or botnet servers in the US directly controlled 1.18 million host computers in China.

intelNews.org backgrounds:

The mysterious Chinese unit behind the cyberespionage charges

On Monday, the United States government leveled for the first time charges against a group of identified Chinese military officers, allegedly for stealing American trade secrets through cyberespionage.

The individuals named in the indictment are all members of a mysterious unit within the Chinese People’s Liberation Army (PLA) command structure, known as Unit 61398. It is estimated that the unit has targeted at least 1,000 private or public companies and organizations in the past 12 years. Western cybersecurity experts often refer to the group as “APT1″, which stands for “Advanced Persistent Threat 1″, or “Byzantine Candor”. It is believed to operate under the Second Bureau of the PLA’s General Staff Department, which is responsible for collecting foreign military intelligence.

Many China military observers argue that Unit 61398 is staffed by several thousand operatives, who can be broadly categorized into two groups: one consisting of computer programmers and network operations experts, and the other consisting of English-language specialists, with the most talented members of the Unit combining both skills.

And Reuters strikes back:

China bans use of Microsoft’s Windows 8 on government computers

China has banned government use of Windows 8, Microsoft Corp’s latest operating system (OS), in a blow to the U.S. technology company which has long been plagued by sales woes in the country.

The Central Government Procurement Center issued the ban on installing Windows 8 on government computers as part of a notice on the use of energy-saving products, posted on its website last week.

The official Xinhua news agency said the ban was to ensure computer security after Microsoft ended support for its Windows XP operating system, which was widely used in China.

The same concept, another front, via the Associated Press:

Germany clamps down on exports of spy tech

Germany says it will restrict exports of surveillance technology to states that fail to respect their citizens’ human rights.

Economy Minister Sigmar Gabriel says the move is designed to prevent spy software ‘Made in Germany’ from being used for internal repression by autocratic regimes.

Amnesty International and Reporters Without Borders welcomed the decision. Rights groups have in the past accused German companies of selling spy software to countries such as Bahrain and Uzbekistan, where the technology is allegedly used to monitor dissidents and journalists.

Meanwhile, Agence France-Presse covers old school business, run both profitably and hypocritically:

Peace-loving Sweden ‘arms dictators’ as defence exports soar

Alongside a global reputation for peacemaking and generous foreign aid, Sweden has become a major world supplier of weapons counting a number of regimes criticised for human rights abuses among its customers.

Ranked the third largest arms exporter per capita after Israel and Russia, Sweden’s booming industry has stirred up ethical concerns among Swedes about some countries it is doing business with.

[C]ritics charge that Sweden has become more inclined to arm regimes accused of human rights abuses, including Saudi Arabia, UAE and Pakistan, as demand from Western nations has declined since the Cold War ended.

On to the Game of Drones, first with The Hill:

Reid: Drone-memo author is a go

Senate Majority Leader Harry Reid (D-Nev.) says he has the votes to confirm David Barron, the author of memos justifying drone strikes against American citizens, to the 1st Circuit Court of Appeals.

Reid said most of the members of the Senate Democratic caucus were satisfied with the defense of Barron provided by White House lawyers at a private briefing last week.

“We’ll vote on the Barron filibuster, stopping that tomorrow. I think we’ll be okay,” Reid said at a Tuesday press conference.

Anchors Aweigh with United Press International:

Navy taps Textron Systems Unmanned Systems for task order work

The U.S. Navy has issued a task order to Textron Systems Unmanned Systems to support intelligence, surveillance and reconnaissance data using its catapult-launched Aerosonde SUAS.

Textron Systems Unmanned Systems reports receipt of a new Navy task order to provide mission support services with its Aerosonde Small Unmanned Aircraft System.

The task order was issued under the Navy Intelligence, Surveillance and Reconnaissance contract, and indefinite-delivery/indefinite-quantity program under which Textron will supply the SUAS, together with system operators and field service representatives on a fee-for-service basis.

And from Aviation Week & Space Technology, strike up Le Marseillaise:

France Weighs Arming UAVs

  • France inches closer to a decision on arming UAVs

The French government is carefully avoiding raising ethical objections to the French air force’s use of unmanned aerial vehicles (UAV), including General Atomics MQ-9 Reapers acquired from the U.S. and recently delivered to the 1/33 Sqdn. French authorities believe UAV reconnaissance capabilities -offer unprecedented advantages, while weapons continue to be carried only by manned combat aircraft such as Dassault -Mirage 2000Ds and Rafales.

Official comments on France’s employment of UAVs are rare and cautiously focus on their complementary role. “They are not expected to replace aircraft; they don’t cover the complete spectrum of operational needs,” says Col. Christophe Fontaine, head of the 1/33 Sqdn. “They complement other capabilities.”

The French forces, which long delayed expressing a clear policy on UAV use, have been operating limited numbers of EADS Harfangs and General Atomics MQ-1 Predators in the last few years and selected the Reaper in the absence of a satisfactory domestic candidate. The U.S. UAV entered service in France recently, and two have already accumulated 700 flight hours across several theaters of operation. The French air force plans to order a total of 12 Reapers, which are capable of carrying weapons—although only with Pentagon approval. To date, Washington has been reluctant to allow even allies such as France or Italy to arm the UAVs it sells them.

And for our final dronal item, sharing the wealth with TheLocal.it:

Finmeccanica launches European drone project

A subsidiary of Finmeccanica has joined forces with fellow aerospace companies in France and Germany to develop a European drone, months after the Italian company built the UN’s first such aircraft.

Alenia Aermacchi will work with France’s Dassault Aviation and Airbus Group in Germany to develop an unmanned aircraft by 2020, Finmeccanica said in a statement released on Monday.

Announcement of the project follows preliminary discussions at the Paris Air Show last year, Finmeccanica said. The three European companies have delivered the joint proposal to their respective governments and aim to develop the plans along with national defence ministries.

From the Christian Science Monitor, the first of three Libyan headlines, with the stinger at the end:

Rogue Libyan general attracts militia support as parliament flails

  • Libyans are waiting to see how the government responds to Khalifa Haftar’s recent attacks – but even decisive action is probably not enough to stem rising chaos.

A former Libyan general appears to be gaining allies among armed factions for his self-described campaign to restore stability in defiance of a weak government.

Two camps are taking shape: The Islamist politicians who dominate Libya’s interim parliament, and their rivals, who are gradually amassing behind Khalifa Haftar, the retired general. His forces have attacked Islamist militias in Benghazi and claimed credit for an attack on the General National Congress (GNC), as parliament is called.

In a bid yesterday to diffuse the crisis, acting prime minister Abdullah Al-Thinni called on the GNC to vote immediately on a 2014 budget and to confirm his successor, the prime minister-elect, before a recess and elections for a new interim legislature.

The Los Angeles Times gets clandestine:

Libyan lawmakers meet in secret after being targeted by ex-general

Libyan lawmakers met in hiding Tuesday, two days after forces loyal to a renegade ex-general stormed the parliament building and demanded that the Islamist-dominated body disband.

Onetime general Khalifa Haftar’s offensive against Islamists and their allied militias, launched last week in the eastern city of Benghazi, threatened to escalate into the worst fighting Libya has seen in the three years since an uprising ousted and killed dictator Moammar Kadafi.

It also posed a stark challenge to the weak central government, which has flailed in its attempts to establish order.

But it takes the World Socialist Web Site to get to the heart of the matter:

CIA-linked general launches Libya coup bid

The leader of the latest military revolt is a former Libyan army general, Khalifa Haftar. A supporter of the 1969 military revolt led by Colonel Gaddafi that overthrew the US and British-backed monarch, King Idris, Haftar was captured during the 1980s Libyan intervention in Chad and then released at Washington’s request, becoming an “asset” of the US Central Intelligence Agency. The CIA moved him to Virginia, near the agency’s headquarters in Langley, and helped him set up training camps for a “Libyan National Army”—the same name he has given to the collection of military and militia units now fighting to overthrow the regime in Tripoli.

When the US and NATO launched their war for regime change in Libya three years ago, Haftar was airlifted back into Benghazi to assume military command of proxy forces on the ground as the US and NATO bombarded the country. He was supplanted in this role, however, by a former Gaddafi interior minister, Abdel Fatah Younis, who was himself subsequently assassinated. He was then eclipsed by the Islamist militias who came to dominate the NATO-backed ground forces.

Meanwhile, from BBC News, a story few will believe in the countries where vaccinating for polio can be lethal to doctors and nurses because the program was arrogantly and lethally used by the CIA to suss out Osama bin Laden and presumably other things as well [can anyone saw war crime, giving the growing numbers of victims?]:

White House: CIA has ended use of vaccine programmes

The CIA has ended the use of vaccine programmes in its spying operations amid concerns for the safety of health workers, the White House has said.

In a letter to US public health schools, a White House aide said the CIA stopped such practices in August. The CIA used a fake vaccine programme to try to find Osama Bin Laden before US special forces killed him in 2011.

The CIA’s move comes after a wave of deadly attacks by militants on polio vaccination workers in Pakistan.

After the jump, shots fired in Korean waters, China/Vietnam tensions remain high, new alliances form, the Japanese remilitarization push morphs, and, oh yeah, folks claim North Korea’s got nuclear-capable missiles. . .
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