Category Archives: Banksters

Greed, drought threaten America’s farmland


For generations, immigrants left their homes for a new land, and of homesteading farms on some of the millions of acres of virgin soil.

But now the land is under threat from giant agribusiness corporations, many of them owned by investment bankers, real estate developers, and, more ominously, by the threat of climate change, which is literally squeezing th last drops of water out of once-fertile soils.

While the first threat seeks to end the role of the smallholder, the latter two change the very nature of the land itself.

We come from a long line of farmers. The first Brennemans were political refugees, fleeing religious persecution in Europe in the 1600s in search of farmland in Pennsylvania, a colony founded by a religious dissident to provide a safe haven for other religious dissidents.

We know that small farmers care about their land, developing intimate relationships with each contour, learning which patches of soil bring the highest yields and which need special care, while investment bankers obsess only over the bottom line.

Many farmers agonize over the growing corporate control of their own land in an age when companies genetically alter the crops they plant by retaining ownership of the seeds themselves, barring farmers from doing what farmers have done for millennia — saving seeds from this year’s crop to grow next year’s harvest.

And then there are the patented chemicals made by those same corporations, chemicals needed to grow those same patented crops.

The investment funds move in

Like vultures, investment funds circle America’s wounded businesses and institutions, waiting for the opportunity to swoop in and harvest “troubled assets” everything from apartments and newspapers to — since the crash of 2008 — America’s farmland.

At the University of California, Santa Cruz, Assistant Professor of Environmental Studies Madeleine Fairbairn has been looking at the change of ownership of America’s farmland, as the university reported last year:

“We’re seeing growing interest in farmland acquisition, and we are seeing new investment vehicles being developed, but we have no idea what it means for small and mid-sized farmers,” said Fairbairn, who received a $150,000 grant from the U.S. Department of Agriculture to study “farmland financialization” in areas of peak agricultural production in California and Illinois.

Until about 2008, financial services companies looked askance at buying farmland, but today, they are snapping it up at an impressive pace: As an example, Fairbairn says TIAA, the leading retirement investor for the academic community, owned no agricultural land before about 2007; today, TIAA controls $8 billion worth of farmland globally, investing on behalf of itself as well as other institutional investors.

“We’re in the beginning stages of what could be a significant shift in land ownership,” said Fairbairn. “Pension funds have enormous resources because they manage money for so many individuals. This has potentially major implications, since access to affordable land is a cornerstone of American agriculture.”

A rural sociologist, Fairbairn has tracked the trend since it first emerged. She has attended agricultural investment conferences where “farmland funds” were pitched to potential investors, and witnessed the development of investment vehicles that cater to the phenomenon, including publicly traded real estate investment trusts (REITs) that first came on the U.S. market in 2013.

“Land ownership is a really important part of agriculture, but one that most people spend very little time thinking about,” said Fairbairn.

California and Illinois represent two poles of U.S. agriculture: California is dominated by high-value specialty crops and “permanent crops” like almonds and wine grapes; land is very expensive; and corporations already are major players. Illinois produces commodity row crops like corn and soybeans, and is home to more small, family-owned farms.

There’s another force at work too, and that’s overseas investors.

Consider, for example, the Saudi royals, who have been scooping up American soil, buying acreage to raise hay to feed the imperial horses.

But the extent of the land grab is much greater, as the Midwest Center for for Investigative Reporting revealed in a 22 June 2017 account:

[B]etween 2004 and 2014, the amount of agricultural land held by foreign investors doubled from 13.7 million acres to 27.3 million acres — an area roughly the size of Tennessee.

While representing only about two percent of total farmland, the value of the foreign-owned U.S. farmland soared from $17.4 billion (in today’s dollars) to $42.7 billion during that same time period, according to U.S. Department of Agriculture data.

Most of today’s foreign investment in agricultural land began to increase in 2005, according to the Midwest Center’s analysis.

Of the top foreign investors who own agricultural land, nine bought most of their land between 2004 and 2014, about $8.1 billion worth of farmland, the Midwest Center found.

The final threats: Destruction of the soil itself

Worse still are those threats that destroy the land itself.

Of the two, we’ll consider the less threat first — the destruction of land through development.

We begin with a map, depicting the amount of farmland lost to the bulldozer between 1992 and 2012, as revealed in Farms Under Threat: The State of America’s Farmland, a new report from the American Farmland Trust [click on the image to enlarge]:

Conversion of agricultural land to urban and low-density residential development between 1992 and 2012

The development of agricultural land is shown in relationship to the low-to-high continuum of productive, versatile, and resilient values for agricultural land. The conversion of agricultural land to urban and low-density residential uses between 1992 and 2012 is shown as high (dark brown-red, > 25% conversion within a 10-kilometer (6.2-mile) radius], moderate [light brown-red, 10–25% conversion] and low [tan, 5–10% conversion]. Urban areas are shown in gray.

From the report:

  • Our analysis, the most comprehensive ever undertaken of America’s agricultural lands, shows that nearly twice the area of farmland was lost than was previously known. Additional major findings, include:
  • Between 1992 and 2012, we lost nearly 31 million acres of land. That’s 175 acres an hour, or 3 acres every single minute
  • 11 million of those acres were among the best farmland in the nation—classified as the most productive, most versatile and most resilient land
  • Development disproportionately occurred on agricultural lands, with 62 percent of all development occurring on farmland
  • Expanding urban areas accounted for 59 percent of the loss. Low-density residential development, or the building of houses on one- to 20-acre parcels, accounted for 41 percent

And the temperature’s rising

The final threat up for consideration today is the long-term and destructive impacts of global warming on the soil itself.

As any farmer can attest, soil is more than just inert dirt. Each soil is a complex ecosystem, harboring microbes that process soil minerals, digest dead organic matter, and release carbon dioxide, methane, and other greenhouse gasses.

Crops favor specific soil types as well, requiring significant levels of fertilizers when planted in less-favorable soils. A considerable body of science reveals that changing water levels changes the microbial community, and the drier soils become, the fewer species of soil microbe can thrive, resulting in a collapse of soil biodiversity.

And now a new study reveals that drier soils also play a direct role in global warming, as starkly captures in these maps, with the upper maps reflecting the regions average temperature increases between 1965 and 2014 compared. to a 1902-1951 baseline period. The lower maps feature of projection of temperature rises for 2050-2099 compared to a 1951-2000 baseline [click on the image to enlarge]:

More from the University of California, Irvine:

Dry months are getting hotter in large parts of the United States, another sign that human-caused climate change is forcing people to encounter new extremes.

In a study published today in Science Advances  [open access], researchers at the University of California, Irvine report that temperatures during droughts have been rising faster than in average climates in recent decades, and they point to concurrent changes in atmospheric water vapor as a driver of the surge.

“Available soil moisture can remove surface heat through evaporation, but if the land is dry, there is no opportunity to transport it away, which increases the local temperature,” said lead author Felicia Chiang, a UCI graduate student in civil & environmental engineering. “Atmospheric conditions can influence soil, and we argue that they’re shaping the temperatures we experience during droughts.”

UCI’s research team analyzed observed temperature and precipitation data from the early and late 20th century and discovered that regions undergoing droughts warmed more than four times faster than areas in the southern and northeastern United States with average weather conditions. In addition, climate models showed a significant warming shift in Southern states between the late 20th century and early 21st century.

These changes point to a greater number of droughts and heat waves co-occurring. This can lead to such calamities as wildfires and loss of crop yields. Widespread conflagrations, spurred on by abnormally high summer temperatures, are currently burning around the world, including in parts of California, Scandinavia and Greece.

“Heat waves and droughts have significant impacts on their own, but when they occur simultaneously, their negative effects are greatly compounded,” said co-author Amir AghaKouchak, UCI associate professor of civil & environmental engineering and Earth system science. “Both phenomena, which are intensifying due to climate warming, are expected to have increasingly harmful consequences for agriculture, infrastructure and human health.”

He suggested that society has a responsibility to respond to the challenges presented by this new climate reality.

“The observed escalation in the number and intensity of wildfires is likely caused by the increase in frequency of hot droughts,” AghaKouchak said. “We need to bolster our resiliency against these threats to protect our population health, food supply and critical infrastructure.”

This study was partially supported by the National Oceanic & Atmospheric Administration.

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Chart of the day: Mortgaging their futures


From Naked Capitalism comes a stunning graphic of the monster that is eating the futures of America’s young:

America’s banksters are consuming the wealth of a generation, to the tune of $4 trillion, according to a study by Demos.

Their key findings:

  • Our model finds that an average student debt burden for a dual-headed household with bachelors’ degrees from 4-year universities ($53,000) leads to a lifetime wealth loss of nearly $208,000.
  • Nearly two-thirds of this loss ($134,000) comes from the lower retirement savings of the indebted household, while more than one-third ($70,000) comes from lower home equity.
  • We can generalize this result to predict that the $1 trillion in outstanding student loan debt will lead to total lifetime wealth loss of $4 trillion for indebted households.
  • The wealth loss will be greater for households with larger-than-average levels of student debt: students from low-income families, students of color, and for-profit students.

Way back when we started college, tuition was either  cheap or non-existent, and an aspiring student could figure that a summer job and maybe some part-time work during the school year would cover all her costs.

But thanks to the combination of tax cuts at the federal and state levels and the GOP push for privatization, college has ceased to be a birthright for the middle class, much less the poor.

A country that feeds on its poor is headed towards collapse.

The decline and fall of American journalism


Community newspapers across the U.S. are dying, slain by a combination of greed, changing public media habits, and indifference.

We begin with a story from Monday’s BBC News:

The New York Daily News, one of the city’s two tabloid papers, is halving its editorial staff, the latest sign of trouble in the local news business. The cuts will leave the newsroom with about 40 people, according to former employees.

They come less than a year after the paper was bought by Tronc, which has a reputation for low newsroom investment.

The New York Daily News started in 1919 and has won 11 Pulitzer Prizes, one of them last year.

Tronc faced backlash from staff at the Los Angeles Times, who formed a union and cast a spotlight on the cuts at Tronc-owned publications, despite high compensation going to top executives and other insiders.

Tronc is paying Merrick Ventures, a private equity firm led by Tronc’s biggest shareholder, $5m (£3.8m) a year for “management expertise and technical services”. The newspaper company, which also owns the Chicago Tribune and Baltimore Sun, subsequently sold the Los Angeles Times.

And it’s not just the Big Apple tabloid’s newsroom on the chopping block. Heads are rolling  today at the chain’s other papers,across the country, as reported by CNNMoney:

The newspaper publisher is laying off staffers at some of its other papers “today and tomorrow,” according to a Monday afternoon memo from Tronc CEO Justin Dearborn.

The announcement immediately spooked staffers at papers like The Baltimore Sun and The Chicago Tribune.

Dearborn said the cuts will not be as severe as in New York.

“The Daily News is unique in that local leadership determined a complete redesign of its structure was needed post-acquisition,” he wrote. “We do not expect reductions of this scale in any of our other newsrooms.”

“With that said, several newsrooms and business units are implementing much smaller reductions today and tomorrow to reduce expenses and contain costs,” he wrote.

But it’s not the gutting of papers that should concern a citizen in a deomiocrayc; it’s also the closing of papers by the giant chains that now control most of the nation’s community journalism.

From PBS’s Independent Lens:

In 1983, 50 corporations controlled most of the American media, including magazines, books, music, news feeds, newspapers, movies, radio and television. By 1992 that number had dropped by half. By 2000, six corporations had ownership of most media, and today five dominate the industry: Time Warner, Disney, Murdoch’s News Corporation, Bertelsmann of Germany and Viacom. With markets branching rapidly into international territories, these few companies are increasingly responsible for deciding what information is shared around the world.

There are also major news organizations not owned by the “big five.” The New York Times is owned by the publicly-held New York Times Corporation, The Washington Post is owned by the publicly-held Washington Post Company and The Chicago Tribune and Los Angeles Times are both owned by the Tribune Company. Hearst Publications owns 12 newspapers including the San Francisco Chronicle, as well as magazines, television stations and cable and interactive media.

But even those publications are subject to the conglomerate machine, and many see the “corporatizing” of media as an alarming trend. Ben Bagdikian, Pulitzer-prize winning journalist, former Dean of the Graduate School of Journalism at UC Berkeley and author of The New Media Monopoly, describes the five media giants as a “cartel” that wields enough influence to change U.S. politics and define social values.

Newspocalypse Now! in three easy graphics. . .

Three images capture the sad story of the decline and fall of community journalism.

First up is a graph by Clinton Mullins, a Twitter exec who formerly held a senior position at old school media legend Conde Nast, showing the steady decline in American newspapers:

Next, from a January Bureau of Labor Statistics report on the state of journalistic employment across all platforms:

And from the Pew Research Center, a global look at the percentages of folks who believe their media are doing very/somewhat well at reporting the news:

One could argue that new media journalists are filling some of the decline seen in print newsrooms, but we would argue that in one very critical respect they are not.

Once newspapers were mostly locally owned, and their journalists and their publishers live in the communities they served.

And most significantly , community newspapers served as platforms for democracy, since providing information for a broad range of the public reflecting wide diversity of activities and opinion and thus constituting m modern version of the ancient Greek agora, the marketplace where both business and democracy took place.

And that’s why the changing nature of media ownership is of such vital importance,

The worst of the  predators stake out their prey

There’s an increasing probability that if you’re reading a U.S. newspaper. It’s owned by that most rapacious of predators, an investment bank. One such outfit, New Media Investment Group, was created as a shell to control the assets of Gatehouse media, with 144 daily newspapers and 333 weekly newspapers in 27 states, with the New Media itself being, according to its website, “externally managed and advised by an affiliate of Fortress Investment Group LLC, a global investment management firm.” Fortress, in turn, owns everything from casinos and retirement homes to other investment firms, a mortgage company, and a railroad.

From The Rise of a New Media Baron and the Emerging Threat of News Deserts, a two-year study by the University of North Carolina at Chapel Hill’s Center for Innovation and Sustainability in Local Media:

Much attention has been focused in recent years on the country’s largest and most revered national newspapers as they struggle to adapt to the digital age. This report focuses, instead, on the thousands of other papers in this country that cover the news of its small towns, city neighborhoods, booming suburbs and large metropolitan areas. The journalists on these papers often toil without recognition outside their own communities. But the stories their papers publish can have an outsized impact on the decisions made by residents in those communities, and, ultimately, on the quality of their lives. By some estimates, community newspapers provide as much as 85 percent of “the news that feeds democracy” at the state and local levels.

This means the fates of newspapers and communities are inherently linked. If one fails, the other suffers. Therefore, it matters who owns the local newspaper because the decisions owners make affect the health and vitality of the community

>snip<

Over the past decade, a new media baron has emerged in the United States. Private equity funds, hedge funds and other newly formed investment partnerships have swooped in to buy — and actively manage — newspapers all over the country. These new owners are very different from the newspaper publishers that preceded them. For the most part they lack journalism experience or the sense of civic mission traditionally embraced by publishers and editors. Newspapers represent only a fraction of their vast business portfolios — ranging from golf courses to subprime lenders — worth hundreds of millions, even billions, of dollars. Their mission is to make money for their investors, so they operate with a short-term, earnings-first focus and are prepared to get rid of any holdings — including newspapers — that fail to produce what they judge to be an adequate profit.

Here in California, Alden Global Capital — another vulture — owns the great majority of Golden State newspapers [38], accounting for an equally large majority of the readership.

Alden runs them through a shell, Digital First Media, which in turn has no less that three other shells to run their California papers. And Digital First President Joe Fuchs has his priorities, as he told a recent press conference: “Alden or any of their peers, doesn’t get involved in something to lose money.”

Alden’s capture of the California Fourth Estate and the ensuing ruthless and repeated downsizings play a leading role in the decline of California print employment reflected in this stunning graphic from the Federal Reserve Bank of St. Louis:

Alden and its principal are so vicious in their attacks on the newsrooms that a 26 March Bloomberg News report on the company carried this headline:

Imagine If Gordon Gekko Bought News Empires

The reality is even worse: This raider sinks decimated newsrooms’ revenue into bad investments.

In an 17 October 2016 report, the Poynter Foundation charted the ownership types of the top 25 newspaper companies. Those gray malignancies dramatically illustrate the metastatic grasp of investment banks in the dramatically downsized dead-tree trade where we spent the most fulfilling years of our life:

The accompanying text reveals one of many things that happens when the hedge-funders seize control:

Because they own so many newspapers, they can absorb the loss if an individual newspaper fails. If investment firms cannot sell an underperforming newspaper, they close it, leaving communities without a newspaper or any other reliable source of local news and information.

As newspapers die, large areas of the country are transformed into news deserts, counties with few or no paid reporters covering the local communities in black and white.

From Columbia Journalism Review, a look at the news deserts in the contiguous 48 states, with the palest areas representing counties with no remaining papers:

One map reminded us of another, this county-by-county reflection [Wikipedia] of the relative proportion of the winning votes for Hillary Clinton [blue] and Donald Trump [red]. The reason for the blue in the news deserts of Atizona and New Mexico is accounted for by the presence of tribal reservations:

More from an 8 April Politico report:

President Donald Trump’s attacks on the mainstream media may be rooted in statistical reality: An extensive review of subscription data and election results shows that Trump outperformed the previous Republican nominee, Mitt Romney, in counties with the lowest numbers of news subscribers, but didn’t do nearly as well in areas with heavier circulation.

POLITICO’s findings — which put Trump’s escalating attacks on the media in a new context — were drawn from a comparison of election results and subscription information from the Alliance for Audited Media, an industry group that verifies print and digital circulation for advertisers. The findings cover more than 1,000 mainstream news publications in more than 2,900 counties out of 3,100 nationwide from every state except Alaska, which does not hold elections at the county level.

The results show a clear correlation between low subscription rates and Trump’s success in the 2016 election, both against Hillary Clinton and when compared to Romney in 2012. Those links were statistically significant even when accounting for other factors that likely influenced voter choices, such as college education and employment, suggesting that the decline of local media sources by itself may have played a role in the election results.

That gives new force to the widely voiced concerns of news-industry professionals and academicians about Trump’s ability to make bold assertions about crime rates, unemployment and other verifiable facts without any independent checks. Those concerns, which initially were raised during the campaign, were largely based on anecdotes and observations. POLITICO’s analysis suggests that Trump did, indeed, do worse overall in places where independent media could check his claims.

The White House declined to comment for this story, but Trump and his campaign officials have made no secret of their preference for partisan national outlets and social media to mainstream outlets of all types.

Newspaper closings lead to higher taxes

Close of local newspapers carries another cost for the impacted communities.

From “Financing Dies in Darkness? The Impact of Newspaper Closures on Public Finance,” by three finance professors, Pengjie Gao of the University of Notre Dame, and Chang Lee and Dermot Murphy of the University of Illinois at Chicago:

Newspapers play an important monitoring role for local governments. Other papers have shown that the loss of a local newspaper leads to worsened political outcomes in the region, and we illustrate that there are worsened financial outcomes as well. In particular, we show that long-run municipal borrowing costs increase by as much as 11 basis points following a newspaper closure, and we utilize several identification tests to show that these results are not being driven by underlying economic conditions in the region. We also show that government efficiency outcomes are substantially affected by newspaper closures. In particular, we find that government wage rates, government employees per capita, tax dollars per capita, and the likelihoods of costly advance refundings and negotiated sales all increase following a newspaper closure. From a finance perspective, our results suggest that local newspapers are important for the health of local capital markets.

For counties that have experienced local newspaper closures, we do not expect these newspapers to return, nor do we think that they should, per se. Online news outlets are fundamentally changing the way that people consume news, and they are very likely to remain the dominant source for news consumption. However, these paradigm-shifting news outlets do not necessarily provide a good substitute for high-quality, locally-sourced, investigative journalism. In the long-run, perhaps an equilibrium will be reached in which these online-based organizations contract out work to local reporters and tailor their news to the local areas. In 2009, former Baltimore Sun reporter and famous television producer David Simon stated the following: “The day I run into a Huffington Post reporter at a Baltimore Zoning Board hearing is the day that I will be confident that we’ve actually reached some sort of equilibrium.” We concur, and our evidence suggests that economic growth at the county level will be better off in that equilibrium.

Just how much a paper’s closure costs local taxpayers whe n their government seeks bond funding is summed up in a graphic from co-author Murphy:

BLOG News bonds

The Trumpster delivers a coup de grâce

And now the biggest beneficiary of the decline of community journalism is dealing Ameirca’s newspapers another deadly blow, forcing papers to cut back even more, writes veteran press-watcher Ken Doctor noted in a March report for the Nieman Lab:

Now the battle is heating up on Capitol Hill over tariffs that the Trump administration imposed on Canadian groundwood paper earlier this year.

The tariffs increase the cost of newsprint by as much as 30 to 35 percent, though the impact on publishers is highly uneven, with some chains in better shape and the dwindling independents most at risk. The predictable impacts already in motion: more newsroom layoffs, thinner (and reshaped) print products, fewer Sunday preprints, and an overall further diminishing of the value proposition newspapers are offering their readers.

The Pittsburgh Post-Gazette will reduce its printing days from seven to five next month. The Nevada Appeal in Carson City, Nevada, moves from seven to just two days, while its parent cuts frequency on three adjacent papers.

Within the industry, there’s talk of “dropping Mondays” and replacing print editions with e-editions on other days as well. It looks as if newsprint tariffs will force more publishers to take the path Advance Publications first took six years ago, swapping daily print for digital.

And so it goes. . .

We started in print journalism doing volunteer reporting for a Colorado mountain daily, beginning with a byline and photo on the front page banner story of the 9 November 1964 San Luis Valley Courier, heading next to Arizona for a $50-a-week gig in Arizona at the weekly Winslow Mail, moving next to Nevada and hitch as crime, civil rights, poverty, and radical politics reporter [the last three beats by our own devising and the first such beat assignments in the history of Silver State journalism] on the staff of the Las Vegas Review-Journal — then as now the state’s dominant newspaper.

Our next job was back in Arizona, where we’d spent 30 days covering schools and general for the Tucson Daily American, a newspaper with the temerity to close before we got our second paycheck.

After starting our journalism addiction at 7600 feet above sea level, our first California gig put us om the Pacific Coast, two blocks from the beach at the Oceanside Blade-Tribune. The town’s main industry was the Camp Pendleton Marine Corps Base, where Vietnam War-bound jarheads got their field training before they headed out to combat.

The next newspaper gig was in another coastal town at the superb family owned Santa Monica Evening Outlook, the finest job we ever held. Then it was on to the Sacramento Bee, the dominant and then only newspaper covering the capital city of the nation’s most populous state.

Our final newspaper job was at the Berkeley Daily Planet, the California city that gave rise to the legendary Free Speech Movement.

Of those newspapers, the Winslow Mail, Tucson Daily American, Oceanside Blade-Tribune, Santa Monica Evening Outlook, and the Berkeley Daily Planet were owned by families or individuals and have folded, vanishing from front porches and newsstands, their communities left without local news produced by committed journalists who, despite by their own inevitable personal biases, work hard to fairly and accurately report differing views.

Each of the communities they once served has become a news desert.

Abby Martin dissects Steve Bannon: It ain’t pretty


There’s little doubt that Steve Bannon is the brains behind President Pussygrabber.

And if Donald Trump is an infantile personality, easily distracted by the latest shiny thing to enter his field of vision, Steve Bannon is another breed of cat altogether, a man with a plan.

And what Bannon plans, Martin shows in this edition of The Empire Files, is a return to the 1950s, when the white man’s word was law, both on the street and in the home, and women, minorities, and others not gifted with testicles and melanin deficiencies could be expected to know their places.

Oh, and he also wants a war with China.

Corrupt, cunning, and vicious, Bannon has fueled the rise of a reign of misfits, and we’ve only seen the beginning.

From teleSUR English:

Empire Files: Abby Martin Exposes Steve Bannon

Program notes:

Steve Bannon has been propelled over the last year from fringe media outlier to top propagandist of the U.S. Empire as Trump’s Chief Strategist.

From his Wall Street roots and apocalyptic film career to his cultivation of alt-right bigots at Breitbart News, Abby Martin exposes Bannon’s true character in this explosive documentary.

Dissection of Bannon’s ideology of “economic nationalism” and desire to “Make America Great Again” reveals the danger of his hand in Trump’s agenda.

Chart of the day: Greek working class miseries


From the Hellenic Statistical Authority, the grim nrews about paychecks yunder the reign of the Austerians:

Kathermini adds some detail:

More than half of private sector employees in Greece are paid less than 800 euros per month, compared with just 11 percent in the public sector, while the real unemployment rate is more than 30 percent, the country’s biggest union claimed in its annual report published on Monday.

The Labor Institute of the General Confederation of Greek Labor (INE-GSEE) noted in its 2016 report on the Greek economy that crisis-induced inequalities among different groups of workers and the decimation of the labor market have had a negative impact on productivity. The increase in labor market flexibility last year translated into 51.6 percent of private sector salary workers receiving less than 800 euros per month at the same time as half of all civil servants were being paid more than 1,000 euros per month.

After processing the salary data in the private sector, INE-GSEE found that net pay was up to 499 euros per months for 15.2 percent of workers, between 500 and 699 euros for 23.6 percent, and 700 and 799 euros per month for 12.8 percent. Just over one in six (17.3 percent) received between 800 and 999 euros. Meanwhile, 38.5 percent of civil servants had net earnings of between 1,000 and 1,299 euros and 15.7 percent collected more than 1,300 euros per month.

The large decline in private sector salaries and the fact that the institute’s economists estimate that the unemployment rate is much higher than the official 23.1 percent are particularly ominous developments which could erode social cohesion and lead large parts of the population into poverty.

The report highlights the increase in the rate of households unable to cover some of their basic needs from 28.2 percent in 2010 to 53.4 percent in 2015. This is due to the major decline in disposable income and the drop in savings. A rise was also noted in the rate of households delaying loan and rent payments (from 10.2 percent in 2010 to 14.3 percent in 2015). Worse, households’ inability (or unwillingness) to pay utility bills soared from 18.8 percent in 2010 to 42 percent five years later.

Life is bitter under the dominion of the Troikarchs

The Wall Street Crash that triggered the Great Recession was followed immediately by the decisions of governments, central banksters, and the money lords of the International Monetary Fund to bail out the banks, and not the lenders.

Those decisions weighed hardest on indebted nations, and proved especially onerous in Southern Europe, where reckless lending by German and other banks had undergirded economic expansion during the boom.

To ensure repayment, the European Central Bank, European Commission, and the International Monetary Fund mandated ongoing wage cuts, pension and healthcare benefit reductions, new taxes, and sellff of large sectors of public infrastructure and resources, most notably in Greece.

The measures have brought no real relief, and Greeks are continuing to pay a high price.

Woman workers hit especially hard

From Kathimerini again:

Women, especially young women, have been hit particularly hard by Greece’s economic crisis, Labor and Social Insurance Minister Effie Achtsioglou told the Parliament in Athens on Wednesday on the occasion of International Women’s Day.

Of all the registered unemployed in Greece, 61 percent are women, Achtsioglou said, noting that although joblessness has dropped 3 percentage points over the past two years of the SYRIZA-Independent Greeks coalition, more needs to be done to curb unemployment generally, and in particular among women.

Cuts in social welfare spending over the years have fallen most heavily on the shoulders of women, Achtsioglou said, adding that the current government remains determined to ease austerity as soon as possible.

And a foreclosure epidemic rocks the nation

Because of lost jobs and smaller paychecks, many Greeks are faced with a hard choice.

From Kathimerini again:

The austerity measures introduced by the government are forcing thousands of taxpayers to hand over inherited property to the state as they are unable to cover the taxation it would entail. The number of state properties grew further last year due to thousands of confiscations that reached a new high.

According to data presented recently by Alpha Astika Akinita, real estate confiscations increased by 73 percent last year from 2015, reaching up to 10,500 properties.

The fate of those properties remains unknown as the state’s auction programs are fairly limited. For instance, one auction program for 24 properties is currently ongoing. The precise number of properties that the state has amassed is unknown, though it is certain they are depreciating by the day, which will make finding buyers more difficult.

Financial hardship has forced many Greeks to concede their real estate assets to the state in order to pay taxes or other obligations. Thousands of taxpayers are unable to pay the inheritance tax, while others who cannot enter the 12-tranche payment program are forced to concede their properties to the state. Worse, the law dictates that any difference between the obligations due and the value of the asset conceded should not be returned to the taxpayer. The government had announced it would change that law, but nothing has happened to date.

Charts of the day: A look at the Greek debt burden


We have two charts from the just-published edition of The Greek Economy, a monthly update from the Hellenic Statistical Authority.

Of the many charts in the document, we picked these two because they depict to loss of national financial sovereignty in a dramatic way.

Our first chart is straightforward, showing the dramatic rise in the ratio of Greek debt to the national GDP:

The second graph charts the radical change in the nature of Greece’s debt, a changed mandated by the financial overlords of the International Monetary Fund, the European Central Bank, and the European Central Bank — the Troika — as a condition of financial aid.

In the chart, debt in the form of securities such as government bonds is represented by the broken blue line, while second broken line represents debt in the form of outright loans. The radical shift was the result of the Troika’s demands on becoming the nation’s financial overlords.

The third and constant line in the graph represents debt in the form of cash and cash deposits:

Quote of the day: The shape of things to come


From Cornell University political economist and prolific author Jonathan Kirshner, writing in the Los Angeles Review of Books:

There is no happy ending to this story. It is not “just one election.” Yes, in theory, most domestic policy blunders can be reversed at a future date. But best case scenario, brace yourself for a horrifying interregnum. The fantasy that the Republican Congress might serve as a check on Trump’s power is just that — a fantasy. Congress does have considerable authority, but mostly regarding those things that they agree with Trump about: slashing taxes on the wealthy, gutting environmental regulations, pretending climate change doesn’t exist, overturning Obamacare, appointing very conservative judges. Moreover, the internet culture is not going away, so don’t imagine that there is a silver lining to be gleaned from the looming policy disasters that we will all suffer through. If enough people enjoy watching the reality TV of the Trump Presidency, they will renew it for another four years. Nor should it be assumed that the Democratic Party, flat on its back, is poised for a comeback. The American left has its own deep divisions to tend to — largely along generational lines, as the young and the old articulate very different interpretations of the core principles of liberalism — which will not be easily papered over.

Worse still, even if we manage to endure the next four years and then oust him in the next election, from this point forward we will always be the country that elected Donald Trump as President. And as Albert Finney knew all too well in Under the Volcano, “some things, you just can’t apologize for.” This will be felt most acutely on the world stage. Keep in mind that in those areas where Trump departs from traditional Republican positions, such as those regarding trade and international security, Congressional power is much weaker. Trump can start a trade war or provoke an international crisis just by tweeting executive orders from the White House. And that damage will prove irreversible. Because from now on, and for a very long time, countries around the world will have to calculate their interests, expectations, and behavior with the understanding that this is America, or, at the very least, that this is what the American political system can plausibly produce. And so the election of Trump will come to mark the end of the international order that was built to avoid repeating the catastrophes of the first half the twentieth century, and which did so successfully — horrors that we like to imagine we have outgrown. It will not serve us well.

We have lost, we are lost. Not an election, but a civilization. Where does that leave us? I think the metaphor is one of (political) resistance. They resisted in occupied France, they resisted in Franco’s Spain. Even in the twilight years of the 1930s, times considerably darker than today, regular men and women stood up against much graver dangers and longer odds than those we now face. They did not resist, necessarily, because they thought they would win, they resisted because they simply could not imagine collaborating, even passively. And for us, even now there are oases of hope in our sea of despair — Trump did indeed lose the popular vote by a wide margin, and there are powerful states and municipalities that might protect many of the most vulnerable from the coming federal onslaught. But we will face a great moment of crisis, after the next major terrorist attack in the U.S. (something no American President could prevent), which will present something like a perfect storm: a thin-skinned, impulsive leader with authoritarian instincts, a frightened public, an environment of permissive racism, and a post-fact information environment. In such a moment basic civil liberties will be at risk: due process will be assailed as “protecting terrorists”; free speech will be challenged as “giving aid and comfort to the enemy.” And that will be the moment when each of us must stand up and be counted, and never forget Tolstoy’s admonition: “There are no conditions to which a man may not become accustomed, particularly if he sees that they are accepted by those about him.” Our portion is to make sure that never comes to pass.