Category Archives: Economy

Hard times separatism, Italian style in Venice


Regional separatism is one of the common denominators of hard economic times, whether in ensl‘s own California or in the European Union.

Italy’s always had strong regional divisions, typically pitting the industrial north against the agrarian south [shades of America's own pre-Civil War economic divides].

This report from Deutsche Welle‘s European Journal takes a look at the separatist movement based in Venice, where would-be guerrillas armored a bulldozer and plotted to tear down statues of Giuseppe Garibaldi, the general who played a key role in Italian unification during the years America was fighting its own civil war.

Intriguingly, Venetia was one of the last holdouts in that unification.

From Deutsche Welle:

European Journal | Italy: Venetian Separatists

Program notes:

They’re demanding the independence of the Veneto region from the rest of Italy, and increasingly using violence: the radical separatists from the group known as “The Alliance.”

The Veneto is one of Italy’s wealthiest regions. But since the economic crisis, many people there are angry that their money is being spent to help the poorer south of the country. That’s grist to the mill for the separatists, who are becoming increasingly radical. Recently the Italian police broke up a group which had acquired weapons from the Albanian mafia and planned to declare Venetian independence on St. Mark’s Square.

Headlines again, with global warning signs


Today’s entries cover everything from social media to troubling tensions in Asia.

We open with a tale of corporatized medicine from the Los Angeles Times:

UC OKs paying surgeon $10 million in whistleblower-retaliation case

The settlement ends a case brought by the ex-head of UCLA’s orthopedic surgery department, who says the medical school allowed doctors to take industry payments that may have compromised patient care.

The settlement reached Tuesday in Los Angeles County Superior Court came just before closing arguments were due to begin in a whistleblower-retaliation case brought by Dr. Robert Pedowitz, 54, a surgeon who was recruited to UCLA in 2009 to run the orthopedic surgery department.

In 2012, the surgeon sued UCLA, the UC regents, fellow surgeons and senior university officials, alleging they failed to act on his complaints about widespread conflicts of interest and later retaliated against him for speaking up.

From Reuters, a tale of not-so-rigorous regulation:

Special Report: For private deals, no one is watching the watchdogs

The Financial Industry Regulatory Authority, the industry’s self-regulating body, requires that broker-dealers conduct “a reasonable investigation” of a private placement before selling it for the issuer. That’s the due diligence. At a minimum, FINRA requires that for each new placement, the broker’s investigation entail a review of the issuer and its management; its business prospects; assets it holds or plans to acquire; the intended use of proceeds from the offering; and claims made in any offering documents.

Some brokers lack the resources to cover all of that, so they rely on reports supplied by third-party due diligence firms. The reports are paid for by the issuer of the private placement. Brokers are meant to use the reports to help them decide whether to market the placements. They don’t typically show the reports to clients.

The set-up constitutes what many see as a fundamental conflict of interest: Companies that raise money through private placements, such as Provident, are paying due diligence firms to review their deals so that broker-dealers will sell them. “They have to write these reports in such a manner that it’s gotta be acceptable” to the issuer, said Michael Miller, a due diligence officer at Sigma Financial, a broker-dealer in Ann Arbor, Michigan.

This isn’t the only instance of regulatees selecting their regulatory overseers. Developers seeking approval for their projects also select the folks who prepare their Environmental Impact Reports [EIRs]. During our coverage of tribal casinos in California we discovered that most of the projects we covered had EIRs prepared by one single company. Their reports always seemed to find that the casinos would have negligible impact. The same was true in communities like Berkeley, where successful developers generally used the same handful of consultants. . .

From BBC News, soaring profits from the intangible:

Facebook earnings surge on mobile advertising

Social networking giant Facebook reported profits of $642m (£383m) during the first quarter of 2014, beating analyst expectations.

The firm said surging mobile advertising helped push first quarter revenue 72% higher, to $2.5bn.

Mobile now makes up 59% of advertising revenue, from 30% a year ago.

BBC News again, this time with profits for a media makers whose products carry those Facebook ads:

Apple announces share buyback as earnings rise

Technology giant Apple reported profits of $10.2bn (£6.1bn) after selling 43.7 million iPhones during the three-month period ending 29 March.

Apple also announced plans to buy an additional $30bn of its stock back from shareholders and to increase its quarterly dividend by 8%.

It also said it would split its stock for the first time in nine years.

The moves are meant to appease investors as the firm reports slowing revenue growth.

From Jiji Press, hands across the Pacific struggle to engage in the neoliberal handshake:

Japan, U.S. to defer broad trade accord

Japan and the United States are now seen deferring a broad trade agreement until after a summit meeting set for Thursday due to differences over key issues, informed sources said Tuesday.

The two countries’ leaders are now expected to welcome progress so far made in bilateral trade talks under the multilateral Trans-Pacific Partnership framework and reaffirm their nations’ commitment to concluding the TPP negotiations, the sources said.

A stalemate over Japanese tariffs on U.S. pork continued during a working-level session in Tokyo on Tuesday.

On to Europe with this report of realism from From New Europe:

Majority of Germans think eurozone crisis not over

A new opinion poll shows that a majority of Germans believed the eurozone crisis is far from over, Germany’s Frankfurter Allgemeine Zeitung reported Wednesday.

According to a survey conducted by polling institute INSA, 81 percent of those asked said the European debt crisis was not yet over, while only 7 percent believed the crisis had ended.

The poll said many German citizens were concerned about developments in Greece. Only 34 percent of respondents saw the country on the right track. A further 39 percent said Greece was not making enough efforts to implement reforms.

The Portugal News covers lingering neoliberalism at work:

Austerity ‘certain’ to continue after troika – Socialist Party

  • The Portuguese Socialist Party said on Tuesday it was “certain” after a meeting with the troika (International Monetary Fund, European Central Bank and the European Commission) that austerity would continue in Portugal despite the financial assistance programme formally coming to an end shortly

And from Reuters, a billionaire and former chief executive gets a mere wrist-slap for profitable corruption:

Italy’s Berlusconi to start community service work next week

Former Italian Prime Minister Silvio Berlusconi said on Wednesday he would start doing community service with the elderly next week as part of a one-year tax fraud sentence.

A court ruled earlier this month that Berlusconi, one of Italy’s richest men, must spend four hours a week [emphasis added] in a Catholic old people’s home on the outskirts of Milan.

After completing the first six months, Berlusconi’s one-year sentence will automatically be reduced to 10 and a half months.

And from United Press International, Italian blackshirt nostalgia:

Mussolini’s birthplace in Italy to get a fascist museum

A museum dedicated to the history of fascism will be created in Predappio, Italy, the birthplace of dictator Benito Mussolini, Mayor Giorgio Frassineti announced.

A museum dedicated to the history of fascism will be created in Predappio, Italy, the birthplace of dictator Benito Mussolini, Mayor Giorgio Frassineti announced.

The northern Italian city, known for neo-fascist pilgrimages, already maintains the home in which Mussolini was born, as well as the mausoleum where he is buried. The museum will be located in the now-abandoned Casa del Fascio, built in the 1930s as part of an urban renewal program, to accommodate visitors and to glorify Mussolini.

On to Greece, in the first of three stories on the austerian numbers game, first from ANA-MPA:

Greek primary surplus totalled 3.4 billion euros in 2013?

  • Greece’s primary surplus totalled 3.4 billion euros in 2013 (excluding the financial support offered to banks), Alternate Finance Minister Christos Staikouras said on Wednesday.The primary surplus figure was based using Eurostat’s methodology, while the troika estimates this figure at 1.5 billion euros.

A contrary take from The Guardian:

Greece’s public finances are in a dire state, and cooking the books won’t help

  • Primary budget facts and details in the small print can no longer be hidden by creative accounting and a sleight of hand

It was dodgy accounting that got Greece into a mess in the first place. Now, more dodgy accounting is being used to dress up the dire state of the nation’s public finances.

When the government in Athens announced last week that it was running a surplus in its primary budget – a measure of financial health that strips out interest payments – it could only do so by recording more than €3bn (£2.5bn) in arrears owed to hospitals and the social security fund as assets. Without this creative accounting, there would have been a primary deficit.

And the third story, with Neos Kosmos covering one of the consequences:

Greece lines up tax cuts

  • Greece is set to ask its eurozone partners to gradually reduce corporation tax rates as part of a wider plan to generate growth in Greece

Greece is set to ask its eurozone partners when the Eurogroup meets on May 5 for permission to gradually reduce corporation tax rates as part of a wider plan to generate growth in Greece, Kathimerini understands.

Several government officials, including Finance Minister Yannis Stournaras and Development Minister Costis Hatzidakis met Tuesday to finalize a three-page proposal that will form the basis for a growth plan that will run from this year until 2020. Both coalition parties, New Democracy and PASOK, were represented at the meeting.

From EnetEnglish.gr, austerity’s fruit ripening:

Uninsured mother unable to afford medication loses her life

  • How many more patients must die from austerity, asks voluntary health clinic
  • Woman’s death proves once again that the government’s ‘policy of excluding our uninsured fellow citizens from healthcare means that human life is endangered and often lost’, says the Metropolitan Community Clinic in Elliniko, Athens

40-year-old uninsured single mother of two young children from the island of Mytilini died earlier this month from the effects of a stroke because she didn’t have the money to pay for her medication, the country’s leading voluntary health clinic said on Wednesday.

Raising the woman’s case, the Metropolitan Community Clinic at Elliniko, Athens, said the woman’s death proved once again that the government’s “policy of excluding our uninsured fellow citizens from healthcare means that human life is endangered and often lost”.

And from To Vima, more of that hard times intolerance:

ANTARSYA condemns fascist attack against election campaign offices

  • Attack took place on Easter Monday, on the anniversary of the military junta’s rise to power in 1967

Leftist party ANTARSYA has condemned a fascist attack against its election campaign offices in Athens, which took place on Monday the 21st of April, anniversary of the 1967 military dictatorship’s rise to power.

ANTARSYA’s municipal candidate Petros Konstantinou claimed to have personally received threatening telephone calls on Thursday evening, with the caller threatening “to show you what Golden Dawn can do”.

The attackers smashed the front door of the offices and ripped down anti-fascism posters that were in the building’s lobby. A trail of blood was discovered outside the offices on the 5th of floor, which the attackers unsuccessfully tried to break into.

On to the Ukraine and journalistic errata from Consortiumnews:

NYT Retracts Russian-Photo Scoop

  • Exclusive: After starting a propaganda stampede – with a lead story about photos of Russian troops purportedly in Ukraine – the New York Times admits the pictures really don’t prove much, and one photo was labeled as snapped in Russia when it was really taken in Ukraine, writes Robert Parry.

After the jump, more escalation and anxieties in Asia’s game of Thrones [with Uncle Sam jumping in], an almost-admirable death sentence, Asian environmental woes, the lLatest chapter of Fukushimapocalypse Now!, plus new developments in the world of Big Brothering and covert ops, plus the latest from the realm of cannabis and crime. . . Continue reading

Chart of the day II: Another kind of inflation


From Fast Food Failure: How CEO-to-Worker Pay Disparity Undermines the Industry and the Overall Economy [PDF], a new report for Demos by Catherine Ruetschlin revealing the massive inflation in wages for those at the very top of an industry employing some of America’s most poorly paid works.

In this chart Ruetschlin compares wage inflation in fast food with other industries [UPDATE: edited image for contrast to improve legibility]:

BLOG Pay disparity

Revoltin’, ain’t it?

Chart of the day: Greek deflationary disaster


The latest evidence [PDF] from the Hellenic Statistical authority:

A0511_DKT63_DT_QQ_01_2014_01_F_EN

Headlines of the day: Classes, deep politics, more


First, a stunning landmark is reached. From the New York Times:

The American Middle Class Is No Longer the World’s Richest

The American middle class, long the most affluent in the world, has lost that distinction.

While the wealthiest Americans are outpacing many of their global peers, a New York Times analysis shows that across the lower- and middle-income tiers, citizens of other advanced countries have received considerably larger raises over the last three decades.

After-tax middle-class incomes in Canada — substantially behind in 2000 — now appear to be higher than in the United States. The poor in much of Europe earn more than poor Americans.

On of the key mechanisms of the collapse of the middle class from Mother Jones:

How Taxpayers Subsidize the Multi-Million Dollar Salaries of Restaurant CEOs

  • Starbucks CEO Howard Schultz raked in $236 million in taxpayer-subsidized compensation over the past two years.

As the fight to raise the minimum wage has gained momentum, the restaurant industry has emerged as the biggest opponent. This is no surprise, since the industry claims the highest percentage of low-wage workers—60 percent—of any other business sector. Front-line fast-food workers earn so little money that about half of them rely on some form of public assistance, to the tune of about $7 billion a year. That hidden subsidy has helped boost restaurant industry profits to record highs. In 2013, the industry reaped $660 billion in profits, and it in turn channeled millions into backing efforts to block local governments from raising pay for low-wage workers and to keep the minimum wage for tipped workers at $2.13 an hour (exactly where it’s been for the past 22 years). But public assistance programs aren’t the only way taxpayers subsidize the restaurant industry.

A new report from the Institute for Policy Studies finds that the public has been contributing to excessive CEO compensation as well, helping to widen the gap between the lowest-paid workers and their bosses. Thanks to a loophole in the tax code, corporations are allowed to deduct unlimited amounts of money from their tax bills for executive compensation, so long as it comes in the form of stock options or “performance pay.” The loophole was the inadvertent result of an attempt by Congress to rein in CEO compensation by limiting the tax deduction for executive pay to $1 million a year. That law exempted pay that came in the form of stock options or performance pay. This loophole has proven lucrative for CEOs of all stripes, but it is particularly egregious in an industry that pays its workers so little that it is already heavily subsidized by taxpayers.

More from UC Berkeley’s Robert Reich:

Raising Taxes on Corporations that Pay Their CEOs Royally and Treat Their Workers Like Serfs

Until the 1980s, corporate CEOs were paid, on average, 30 times what their typical worker was paid. Since then, CEO pay has skyrocketed to 280 times the pay of a typical worker; in big companies, to 354 times.

Meanwhile, over the same thirty-year time span the median American worker has seen no pay increase at all, adjusted for inflation. Even though the pay of male workers continues to outpace that of females, the typical male worker between the ages of 25 and 44 peaked in 1973 and has been dropping ever since. Since 2000, wages of the median male worker across all age brackets has dropped 10 percent, after inflation.

This growing divergence between CEO pay and that of the typical American worker isn’t just wildly unfair. It’s also bad for the economy. It means most workers these days lack the purchasing power to buy what the economy is capable of producing — contributing to the slowest recovery on record. Meanwhile, CEOs and other top executives use their fortunes to fuel speculative booms followed by busts.

Renting wombs to fertilized eggs from abroad via Quartz:

Wealthy Chinese are turning to American surrogates to birth their children

The familiar image of international surrogacy until now has mainly involved Americans and Europeans crossing the world to find women to birth their children. Now, wealthy Chinese couples are seeking surrogates in the US. The practice—a new version of Chinese “birth tourism”—offers a solution to rising infertility in China, a way around Chinese population controls, and even the added bonus of US citizenship for babies born in the States.

For years, pregnant Chinese women have come to the US, mainly to the West Coast, to give birth to baby US citizens who can, at the age of 21, sponsor their parents for green cards. In a new wrinkle, some are instead paying American women to carry their children—a way of getting citizenship as well as dealing with the fact that more Chinese couples are facing trouble having children. (Other surrogacy destinations for wealthy Chinese include Thailand, India, and Ukraine, but the US is still the favorite.)

Salon finds brown noses:

Welcome to Plutocrat-geddon! Obama and Thomas Friedman flatter our new billionaire overlords

  • Forget inequality! Judging by the White House and the media, the real answer is sucking up to the wealthiest

Inequality is a burning topic among economists, especially since the release of Thomas Piketty’s recent book on the subject. Many are questioning whether this is a temporary period of runaway inequality, or whether we are on the verge of an irreversible collapse into extremes of wealth and poverty. (What would we call it? The Oligopolypse? Plutogeddon?)

But numbers alone don’t tell the full story. Culture, too, is adapting to this unequal world. We idealize the wealthy today in ways that would have been unthinkable decades ago.

With the children of today’s baby boomers scheduled to inherit $30 trillion in the next several decades, politicians and the press are hard at work flattering plutocrats of all ages by portraying them as paragons of wisdom.

Another assault on the potential middle class from the New York Times:

Student Loans Can Suddenly Come Due When Co-Signers Die, a Report Finds

For students who borrow on the private market to pay for school, the death of a parent can come with an unexpected, added blow, a federal watchdog warns. Even borrowers who have good payment records can face sudden demands for full, early repayment of those loans, and can be forced into default.

Most people who take out loans to pay for school have minimal income or credit history, so if they borrow from banks or other private lenders, they need co-signers — usually parents or other relatives. Borrowing from the federal government, the largest source of student loans, rarely requires a co-signer.

The problem, described in a report released Tuesday by the Consumer Financial Protection Bureau, arises from a little-noticed provision in private loan contracts: If the co-signer dies or files for bankruptcy, the loan holder can demand complete repayment, even if the borrower’s record is spotless. If the loan is not repaid, it is declared to be in default, doing damage to a borrower’s credit record that can take years to repair.

And a warning to labor from the London Daily Mail:

The future of factories? Swarm of super-fast robotic ‘ANTS’ powered by magnets can independently climb walls and even build

  • The army of robo-ants can move at around 13.7 inches (35cm) a second
  • This is equivalent to a human running at just under the speed of sound
  • Each ant can be individually controlled using magnets on a circuit board
  • Swarm has already built a tower 30cm (11.8 inches) high from carbon rods

Business Insider sounds the alarm:

DAVID EINHORN: ‘We Are Witnessing Our Second Tech Bubble In 15 Years’

Hedge-fund manager David Einhorn, who runs Greenlight Capital, says we’re seeing another tech bubble, CNBC reported, citing his fund’s quarterly investor letter.

“Now there is a clear consensus that we are witnessing our second tech bubble in 15 years. What is uncertain is how much further the bubble can expand, and what might pop it,” Einhorn wrote in the letter (PDF) posted online by @Levered_Hawkeye.

Clicking away your rights from the Christian Science Monitor:

General Mills drops arbitration clause, but such contracts are ‘pervasive’

Consumer advocates warn that clicking ‘I agree’ to online contracts can crimp buyers’ legal rights, if a contract requires arbitration and nixes class-action lawsuits. The practice is spreading, though General Mills encountered a backlash.

When consumers click “I agree” to online contracts, two things can happen: They may give up their right to pursue a class action lawsuit if something goes wrong, and they can seek damages only through arbitration, an out-of-court legal process that many experts say weighs against the harmed consumer.

From the Los Angeles Times. Another landmark:

Supreme Court upholds Michigan ban on affirmative action

The Supreme Court upheld Michigan’s ban on the use of racial affirmative action in its state universities Tuesday, ruling that voters are entitled to decide the issue.

The 6-2 decision clears away constitutional challenges to the state bans on affirmative action, which began in California in 1996.

Justice Anthony Kennedy, speaking for the majority, said the democratic process can decide such issues. “This case is not about how the debate about racial preferences should be resolved,” he said. “It is about who may resolve it. There is no authority in the Constitution of the United States or in this court’s precedents for the judiciary to set aside Michigan laws that commit this policy determination to the voters.”

Kochs go Latino, via Reuters:

Conservative Koch-backed group uses soft touch in recruiting U.S. Hispanics

The conservative advocacy groups backed by the billionaire brothers Charles and David Koch are known mostly for spending millions of dollars to pelt Democratic candidates with negative television ads.

But this year, one Koch-backed group is using a softer touch to try to win over part of the nation’s booming Hispanic population, which has overwhelmingly backed Democrats in recent elections. The group, known as The Libre Initiative, is sponsoring English classes, driver’s license workshops and other social programs to try to build relationships with Hispanic voters in cities from Arizona to Florida – even as the group targets Democratic lawmakers with hard-edged TV ads.

Taking a cue from liberal groups that have been active in Hispanic neighborhoods for decades, Libre says it aims to use these events to build support for small-government ideas in communities that typically support big-government ideals.

From NPR, a reminder from Mother Nature:

California’s Drought Ripples Through Businesses, Then To Schools

Nearly half of the country’s fruits, nuts and vegetables come from California, a state that is drying up. , the entire state is considered “abnormally dry,” and two-thirds of California is in “extreme” to “exceptional” drought conditions.

Earlier this year, many farmers in California found out that they would get no irrigation water from state or federal water projects. Recent rains have helped a little. On Friday, government officials said there was enough water to give a little more to some of the region’s farmers — 5 percent of the annual allocation, instead of the nothing they were getting.

>snip<

Economists say it’s too early to accurately predict the drought’s effect on jobs, but it’s likely as many as 20,000 will be lost.

That might not sound like a lot, but many of those workers are already living paycheck to paycheck in communities that depend on that work.

Via the National Drought Monitor, the current state of affairs in California, ranging from lightest [abnormally dry] to darkest [exceptional drought]:

BLOG Drought

After the jump, the latest from Europe [including spiking austerian suicides], Asia’s Game of Zones, an American Nazi whose work inspired a French film, spy games, and muich more. . . Continue reading

Chart of the day II: American oligarchical curve


From International Social Survey Programme data, complied by Larry Bartels of the Washington Post for an article headlined “U.S. is a World Leader in Class Conflict Over Government Spending”:

BLOG Oligarchy

Chart of the day II: Europe’s rapid deflation


From Eurostat [PDF]. ln the image to enlarge:

Mall för pressemeddelande

More of those not-so-random headlines to mull


First up, how the New York Times covers the elite from Gawker:

Insanely Rich Reporter Covers White House Meeting of the Insanely Rich

There’s a lot to pore over in the New York Times Style section’s coverage of a conference for über-wealthy “next-generation” philanthropists that was recently held at the White House.

There’s the list of attendees, which includes the young progeny of such hallowed, moneyed families as Hilton, Rockefeller, and Pritzker. There’s the breathless, classically Style section-y way in which participants and organizers are described: eloquent, nimble, and commanding gravitas, wearing pinstripe suits and “scraggy Brooklyn-style facial hair.” There’s the reference to one 19-year-old attendee’s “swooping” Bieberesque bangs, despite the fact that Bieber hasn’t had that haircut in years.

Most of all, however, there’s this disclosure notice from the reporter, about halfway through the article:

Disclosure: Although the event was closed to the media, I was invited by the founders of Nexus, Jonah Wittkamper and Rachel Cohen Gerrol, to report on the conference as a member of the family that started the Johnson & Johnson pharmaceutical company.

At a conference for such refined people as these, not just any reporter will do. No, it must be a writer who intimately knows the struggles of the young and wealthy, and who can accurately transmit the ways in which they’re saving the planet to the unwashed Times-reading masses. It must be Jamie Johnson (net worth about $610 million, according to Business Insider in 2011), heir to the Johnson & Johnson company fortune.

And from the London Telegraph, that bastion of Toryism, gilding a turd:

Has the West fallen prey to crony capitalism?

  • There are certainly signs of a wealth gap – like the explosion of buy-to-let landlords in London – but that will inspire the strivers and innovators

From the Oakland Tribune, yet another gift from Proposition 13 [and here]:

Oakland auditor sounds pension alarm

Pension costs have more than doubled over the past decade, leaving Oakland with fewer police officers, more potholes and a growing threat of insolvency, City Auditor Courtney Ruby warned in a report released Sunday.

Oakland’s payments to the state pension system jumped from $37 million in 2003 to $89 million in 2012, the report found.

That $52 million gap is enough to pay the salaries of 300 police officers, according to city budget figures.

From the Los Angeles Times, the grift that keeps on giving:

Student debt holds back many would-be home buyers

Of the many factors holding back young home buyers — rising prices, tougher lending standards, a still-shaky job market — none looms larger than the recent explosion of college debt.

Of the many factors holding back young home buyers — rising prices, tougher lending standards, a still-shaky job market — none looms larger than the recent explosion of college debt.

The amount owed on student loans has tripled in a decade, to nearly $1.1 trillion, according to the Federal Reserve Bank of New York. People in their 20s and 30s — often the best-educated and highest-earning among them — owe most of that tab. That is keeping a crucial segment of home buyers on the sidelines, deferring one of the traditional markers of adult success.

The National Assn. of Realtors recently identified student debt as a key factor in soft demand for home-buying this spring. A recent study by the trade group identified student loans as the top reason many home buyers delayed their purchase. Many more didn’t buy at all.

Surveys show today’s adults value homeownership just as much as their parents did. But the shaky job market, higher debt loads, and the roller-coaster market of recent years is keeping many from pulling the trigger, said Selma Hepp, senior economist with the California Assn. of Realtors.

And the darker side of the picture from The Young Turks:

Students Loans Are HUGE Profit-Centers For The Government

Program notes:

“The U.S. Department of Education is forecast to generate $127 billion in profit over the next decade from lending to college students and their families, according to the Congressional Budget Office.

Beginning in the 2015-16 academic year, students and their families are forecast to pay more to borrow from the department than they did prior to last summer’s new student loan law, which set student loan interest rates based on the U.S. government’s costs to borrow. The higher costs for borrowers would arrive at least a year sooner than previously predicted.”* The Young Turks hosts Cenk Uygur and Ana Kasparian break it down.

And it’s not just in the U.S. From TheLocal.se:

Students to keep paying off debt beyond 67

The Swedish government has proposed scrapping the 25-year span for repaying student loans, by suggesting those who attend higher education should keep paying the money back well into retirement.

At present some 200,000 students have their student loan written off every year when they reach the age of 67. However, proposals in the government’s spring government bill are set to increase the financial burden on students.

Along with the idea of extending the debt into old age, the government are going to more than double the fee when students get a late payment reminder.

Next up, grief from Old Blighty as Tory Dubyafication of British education rouses ire, via The Independent:

Furious teacher brands Michael Gove a ‘demented Dalek on speed’ as NUT threaten more strikes

A furious teacher has branded Michael Gove a “demented Dalek on speed” during a series of scathing attacks against the Education Secretary at the teachers’ union conference.

Mr Gove was likened to the Doctor Who monster, known as the most hated adversary in all of time and space, as teachers threatened a major escalation of strike action at the National Union of Teachers (NUT) conference in Brighton on Saturday.

A member of the teachers’ union insisted that the Education Secretary was determined to “exterminate anything good in education that’s come along since the 1950s”.

And from Reuters, even Germany is finally realizing that financial crisis ain’t over:

ECB hardliner Weidmann comes in from the cold as deflation threatens

As recently as last November, Jens Weidmann steadfastly opposed any move by the European Central Bank to print money to buy assets and buoy the euro zone economy. No longer.

The Bundesbank chief, known for his hardline stances at the ECB and as head of the German central bank, is now ready to support such quantitative easing (QE) if he and his ECB colleagues deem it necessary. What has changed is that “the situation has changed”, according to one person familiar with the German’s thinking, speaking on condition of anonymity.

Euro zone inflation has slowed to 0.5 percent from 0.9 percent in November, falling far below the ECB’s target of just under 2 percent and stoking fears the bloc could become stuck in a prolonged period of so-called “low-flation”, or even sink into outright deflation.

After the jump, environmental nightmares, the Koch brothers declare war on solar, Japan and U.S. unions contract frack-o-mania, the Sino-Japanese cold war amps up, snoops on your shelves and in your thermostat, docs call for legal pot, drugged soldiers, and more. . . Continue reading

From Forbes: The United States of Marijuana


The number crunchers at the magazine for millionaires parse the numbers, coming to some interesting conclusions in this video report:

The United States of Marijuana

Program note:

As laws ease and public opinion leans towards legalization, Forbes looks inside the billion dollar industry of marijuana and the impact it can have on the economy.

Random headlines again, for your consideration


We begin with one from United Press International, offering proof of what we all know:

The US is not a democracy but an oligarchy, study concludes

  • “The central point that emerges from our research is that economic elites and organized groups representing business interests have substantial independent impacts on US government policy, while mass-based interest groups and average citizens have little or no independent influence.”

Oligarchy is a form of government in which power is vested in a dominant class and a small group exercises control over the general population.

A new study from Princeton and Northwestern Universities concluded that the U.S. government represents not the interests of the majority of citizens but those of the rich and powerful.

“Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens” analyzed extensive data, comparing nearly 1,800 U.S. policies enacted between 1981 and 2002 with the expressed preferences of average and affluent Americans as well as special interest groups.

UPDATE: Link fixed. Read it all here [PDF].

From The Guardian, Bubba’s bankster buddies:

Wall Street deregulation pushed by Clinton advisers, documents reveal

  • Previously restricted papers reveal attempts to rush president to support act, later blamed for deepening banking crisis

Wall Street deregulation, blamed for deepening the banking crisis, was aggressively pushed by advisers to Bill Clinton who have also been at the heart of current White House policy-making, according to newly disclosed documents from his presidential library.

The previously restricted papers reveal two separate attempts, in 1995 and 1997, to hurry Clinton into supporting a repeal of the Depression-era Glass Steagall Act and allow investment banks, insurers and retail banks to merge.

And from USA Today, high anxiety:

Nerves fray as anniversaries of April attacks arrive

As most Americans this week enjoy mid-April’s well-deserved warm weather, educators, law enforcement and civil rights groups are perhaps understandably a bit on edge with the approach of several dates that bring bad memories.

Saturday marks the anniversary of the 1995 terrorist bombing in Oklahoma City, as well as the 1993 FBI attack of the Branch Davidian compound near Waco, Texas, which killed cult leader David Koresh and 75 followers.

Oklahoma City bomber Timothy McVeigh called his attack payback for the deaths at Waco at the hands of the FBI, calling the siege “first blood.” The Oklahoma City bombing killed killed 168 people.

Six years later, Colorado teenager Eric Harris would boast in his journal that he planned to outdo McVeigh’s body count in an attack on Columbine High School in Littleton, Colo. The 15th anniversary of that attack falls on Sunday. Harris, along with Dylan Klebold, killed 13 in a siege that was actually a failed bombing, police say. The Columbine attacks took place on the 110th anniversary of Adolf Hitler’s birth.

From the London Daily Mail, justice American style:

Judge rules that Texas inmate still behind bars 34 years after his conviction was overturned is at fault because he NEVER asked for a new trial

  • Jerry Hartfield was sentenced to death row in 1976 but his conviction was overturned four years later
  • He has an IQ of 51 and maintains police used a false confession in his case
  • Judge ruled that his right to a speedy trial had not been violated, even though the state was negligent in failing to retry him

Another potential unemployment casualty in France from RFI:

President Hollande won’t run for re-election if unemployment remains high

French President François Hollande made a shock announcement on Friday during a lunch with employees of the Michelin company: if unemployment continues to plummet between now and 2017, he will have “no reason to be a candidate” for a second mandate.

Hollande said that employment, particularly for young people, was a priority for him. “We’re going to put all our energy into this issue because there’s no other challenge [this important],” said the president.

From El País, the Iron Chancellor reneges on a promise:

Germany cancels scheme designed to attract young jobless from abroad

  • Spaniards made up half of all applicants for The Job of My Life
  • The program offered funding for language studies and help finding work
  • “I thought the Germans were serious”

The German government has announced that it is closing its The Job of My Life program, set up at the beginning of last year to attract young people from some of Europe’s hardest-hit economies – such as Greece and Spain – to work in Germany.

The €400-million program, which was aimed at 18- to 35-year-olds, was initially scheduled to run until 2018. This year’s budget, €48 million, has already been spent. The aim was to provide financial aid to young people in their own countries while they learned German, help them with interviews and then assist with the move to Germany to look for work.

From United Press International, giving the boot on The Boot:

Venice secession vote underscores autonomist movements

“We are now experiencing a strong return of little nations, small and prosperous countries, able to interact with each other in the global world,” Paolo Bernardini, European history professor at Italy’s University of Insubria, commented.

A vote in Italy’s Veneto region, which includes the city of Venice, indicating widespread support for secession from Italy, underscores the rise of nationalism in the world.

Considering the recent referendum in Crimea, the legitimacy of which was questioned, and prior to a September referendum in Scotland, whose approval could mean independence from England as early as 2016, the Venice vote in March was more like a survey. Online and without official status, it nonetheless indicated 89 percent of two million voters approved of formally separating themselves from Italy.

A blow to partisan plutocrats from the New York Times:

China Signals a Change as it Investigates a Family’s Riches

A corruption inquiry targeting the retired Communist Party leader Zhou Yongkang and his family could challenge a tacit rule that has allowed elite clans to accumulate vast wealth.

DVICE eyeballs a spooky development:

Forget Glass, Google wants to put a camera on your eyeball

Google Glass has been getting a lot of time in the spotlight lately, but if the boffins from Mountain View have their way, that fancy Google Glass rig may soon look about as cutting edge as having a Motorola Razr phone attached to your hip.

A recently published patent shows that Google has been looking at ways to build a camera directly into a contact lens on the surface of your eye. That would certainly make it more discreet than the clunky looking Glass, perfect for when you don’t want people to know that you’re using it. But it also means that the camera will be able to follow the direction of your vision, opening new possibilities for how it could be used.

From the Miami Herald, a rare chance to look inside the black box:

Guantánamo judge to CIA: Disclose ‘black site’ details to USS Cole defense lawyers

The military judge in the USS Cole bombing case has ordered the CIA to give defense lawyers details — names, dates and places — of its secret overseas detention and interrogation of the man accused of planning the bombing, two people who have read the still-secret order said Thursday.

Army Col. James L. Pohl issued the five-page order Monday. It was sealed as document 120C on the war court website Thursday morning and, according to those who have read it, orders the agency to provide a chronology of the overseas odyssey of Abd al Rahim al Nashiri, 49, from his capture in Dubai in 2002 to his arrival at Guantánamo four years later.

The Usual Suspects, cashin’ in — via Wired:

High Tech

How Silicon Valley entrepreneurs are rushing to cash in on cannabis.

For the science and technology set, it’s a classic opportunity to disrupt an industry historically run by hippies and gangsters. And the entire tech-industrial complex is getting in on the action: investors, entrepreneurs, biotechnologists, scientists, industrial designers, electrical engineers, data analysts, software developers. Industry types with experience at Apple and Juniper and Silicon Valley Bank and Zynga and all manner of other companies are flocking to cannabis with the hopes of creating a breakout product for a burgeoning legitimate industry. Maybe it’s the Firefly. Maybe it’s something still being developed in someone’s living room. There’s a truism about the gold rush days of San Francisco: It wasn’t the miners who got rich; it was the people selling picks and shovels. As the legalization trend picks up steam, Silicon Valley thinks it can make a better shovel.

From the Los Angeles Times, stiffing Californians to collect on high out-of-state tuitions:

California students feel UC admission squeeze

  • Most campuses take a lesser number of state students even as more get in from elsewhere.

California high school seniors faced a tougher time winning a freshman spot at most of the UC campuses for the fall, with their chances at UCLA and UC Berkeley now fewer than one in five, according to a report released Friday.

Six of UC’s nine undergraduate campuses accepted a smaller number of California students than last year even though the number of applicants rose. Competition was fiercest at UCLA, where only 16.3% of state students were admitted, down from 17.4% last year, and at UC Berkeley, where 18.8% were accepted, compared with 21.4% last year.

Increased competition is part of a national trend this year at the most elite level of higher education. Even though the population of American high school graduates dropped a bit, students are applying to more colleges, and schools are recruiting more overseas, especially in Asia. In the most extreme example, Stanford University accepted only 5% of applicants; many other highly selective campuses reported record low rates.

From Al Jazeera America, nostalgic for blasts from the past:

Boom town: Atomic tourism blooms in a western desert

  • As nuclear age approaches eighth decade, visitors flock to historic bomb craters at New Mexico test sites

Standing a few yards from the spot where the world’s first atomic bomb detonated with a blast so powerful that it turned the desert sand to glass and shattered windows more than 100 miles away, tourist Chris Cashel explained what drew him here.

“You don’t get to go to very many places that changed the entire world in a single moment,” said Cashel as he glanced around the windswept, desolate Trinity Site in the New Mexico desert packed with tourists. “The world was never going to be the same after that.”

The military veteran was among thousands of visitors who piled into cars and buses to drive out to the secluded site about 35 miles southeast of Socorro, where Manhattan Project scientists split the atom shortly before dawn on July 16, 1945, ushering in the atomic age. The successful test of the nuclear “gadget” unleashed a blast equivalent to 19 kilotons of high explosive, and led to the devastation of the Japanese cities of Hiroshima and Nagasaki weeks later.

And for our final item, worrisome corona virus censorship from Avian Flu Diary:

Saudi Govt. Prohibits ‘Unauthorized’ Media Coverage Of MERS

As you might expect, this announcement is making quite a stir on the twitter feed from Saudi Arabia, with many people clearly not pleased with this edict.

Chart of the day: No trust in parties on economy


Both parties declared FUBAR, with trust at 21st Century low. From Gallup:

BLOG Econ

Keiser Report: Critical Ukrainian perspective


If you listen to the Obama administration and their allies on both sides of the political aisle, we’re obsessed with the Ukraine because some nasty Russians are imperializing and dreaming of Joe “The Boss” Stalin via his latter-day Putinesque incarnation.

But if the U.S. is really consumed by the need to get all aggressive over massive human rights abuses, then why aren’t we threatening Saudi Arabia, where women can’t drive and are subjected to arbitrary whims of a religious paramilitary police — the same zealots who forced a dozen girls to burn to death simply because they tried to flee their burning quarters quarters before they had a chance to don the clerically required garb?

And why not send warships off Brunei, where it’s going to be legal this coming Tuesday to order the stoning deaths of practicing gays? Or Uganda, where men are facing life in prison simply for the way they chose to ejaculate.

In the second half of this latest episode of the Keiser Report, an Oakland, California, journalist reveals some of their deeper motivations for American concern about control of the Ukraine.

And don’t be surprised if one of the players is a major multinational with a huge and controversial presence in the San Francisco Bay Area.

From the Keiser Report:

Keiser Report: Ukraine’s Big Oil & Big Angst (E590)

Program notes:

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss American injustice in the age of the wealth gap and Weev’s hedge fund trolling. In the second half, Max interviews JP Sottile of Newsvandal.com about Big Oil and Big Ag in Ukraine. Sottile names the people and corporations hoping to exploit the Ukrainian agricultural sector.

Newsvandal’s an interesting alternative news site, and Oaklander JP Sottile raises the right questions, ones that aren’t raised prominently or at all in the dying lamestream media.

More of those not-so-random headlines. . .


We open with this grim assessment from United Press International:

One-fifth of Chinese farmland is polluted, study says

  • Nearly one-fifth of China’s available farmland is polluted.

Nearly one-fifth of China’s available farmland is polluted, a government report said.

Issued Thursday by the Ministry of Environmental Protection and the Ministry of Land Resources, it said 16.1 percent of the country’s land was polluted, as was 19.4 percent of its farmland, citing “human industrial and agricultural activities” as the cause. The report was based on a study, from 2005 to 2013, on land across China.

China’s rapid industrialization, a lack of regulations and a dominance of commercial interests were cited as the cause.

The most common pollutants are cadmium, nickel and arsenic, three materials whose presence in soil have risen sharply since 1986. The cadmium level in southwestern land increased by 50 percent since 1986, and southern Chinese soil is more severely polluted than that in the north, the report said.

And an even grimmer warning from The Guardian:

Entire marine food chain at risk from rising CO2 levels in water

  • Fish will make themselves vulnerable by being attracted to predator odour and exhibiting bolder behaviour

Escalating carbon dioxide emissions will cause fish to lose their fear of predators, potentially damaging the entire marine food chain, joint Australian and US research has found.

A study by the Australian Institute of Marine Science, James Cook University and the Georgia Institute of Technology found the behavior of fish would be “seriously affected” by greater exposure to CO2.

Researchers studied the behavior of coral reef fish at naturally occurring CO2 vents in Milne Bay, in eastern Papua New Guinea.

And from Reuters, a case of too little, too late:

Manager at Japan’s Fukushima plant admits radioactive water ‘embarrassing’

The manager of the Fukushima nuclear power plant admits to embarrassment that repeated efforts have failed to bring under control the problem of radioactive water, eight months after Japan’s prime minister told the world the matter was resolved.

Tokyo Electric Power Co, the plant’s operator, has been fighting a daily battle against contaminated water since Fukushima was wrecked by a March 2011 earthquake and tsunami.

Prime Minister Shinzo Abe’s government pledged half a billion dollars last year to tackle the issue, but progress has been limited.

“It’s embarrassing to admit, but there are certain parts of the site where we don’t have full control,” Akira Ono told reporters touring the plant this week. He was referring to the latest blunder at the plant: channelling contaminated water to the wrong building.

From the Washington Post, yet another take on Obama’s alleged “recovery”:

Long-term unemployed struggle to find — and keep — jobs

For the long-term unemployed, finding a job is hard — but keeping one may be even harder.

New research tracking people who have been out of work for six months or longer found that 23 percent landed a job within a few months of the study. But a year later, more than a third of that group was unemployed again or out of the labor force altogether.

The findings are the latest in a bleak but growing body of literature suggesting long-term unemployment has become a trap that is difficult to escape.

Economists say that means the long-term unemployed could become a permanent underclass, left behind by the nation’s broader economic recovery.

From MediaWire, a case of censorship from afar:

NYT abides by Israeli gag order, draws questions from public editor

The New York Times delayed publication of a story this week about a young journalist and Palestinian rights advocate held by Israeli authorities, abiding by a court gag order, the Times’ public editor wrote Friday.

Jerusalem Bureau Chief Jodi Rudoren told Public Editor Margaret Sullivan that the paper is bound by the gag orders:

She said that the situation is analogous to abiding by traffic rules or any other laws of the land, and that two of her predecessors in the bureau chief position affirmed to her this week that The Times has been subject to gag orders in the past.

The newspaper’s newsroom lawyer told Sullivan “the general understanding among legal counsel in other countries is that local law would apply to foreign media,” but said the Times hasn’t challenged the restriction in Israel.

And from the Japan Times, rebranding militarism:

Military waging popularity campaign

  • SDF charm offensive coincides with Abe’s collective defense push

Pacifist Japan is gradually learning to love its military, with an apparent public relations campaign to soften its image featuring online popularity contests, a much-touted soprano vocalist and dating events.

The armed forces are also visible in youth culture, with young teens tuning in to “Girl und Panzer,” a cartoon about schoolgirls who do battle in tanks. Japan’s most popular Twitter hashtag in 2013 was #KanColle, a reference to an online game in which anthropomorphized warships compete to out-pretty each other as young girls.

The image change comes as nationalist Prime Minister Shinzo Abe is pushing to give the Self Defense Forces more money and scope to act as a normal military might, at a time of rising tensions with China.

From the Reykjavík Grapevine, the curious case of the peaceful latter-day Vikings:

Examining The First Use Of Lethal Force By Icelandic Police

In a large apartment block in the Árbær suburb, the police gunned down a middle-aged man early morning on December 2, 2013. Not only was this the first time the Icelandic police used lethal force, but also the first time they fired a live round in the line of duty. Considering its monumental significance in Icelandic history this incident has received remarkably little attention from the media.

Finally, via the Oakland Tribune, a criticism of the profiteering spouse of California’s plutocratic senator:

Berkeley: USPS doesn’t follow historic preservation rules, report says

An agency that oversees preservation of federally owned historic property took the United States Postal Service to task in a report issued April 17, noting “significant concerns” resulting from sales of historic post offices due to the loss to the public of facilities built for public use, and the risk to historic art and architecture.

The Advisory Council on Historic Preservation report “Preserving Historic Post Offices: A Report to Congress,” states that “these concerns include not just the decision to close the facilities, but the manner in which the USPS is conducting its decision-making process, the transparency of that process, and how it conducts the … consultation process” mandated under the National Historic Preservation Act.

>snip<

One of the problem areas the report noted was that the postal service did not look at alternatives to sales, such as leasing properties.

“The ACHP has no evidence that the USPS has explored (as mandated under the preservation act) any alternatives to disposal of any of the historic post offices to date,” the report said.

ACHP further criticized USPS for not using “alternative property disposal systems.”

Currently, USPS has charged the giant real estate firm CBRE with marketing historic post offices. CBRE chair is Richard Blum, UC Berkeley trustee and spouse of U.S. Sen. Dianne Feinstein, D-San Francisco.

The report says it would be preferable to market the properties through the General Services Administration’s Office of Real Property Disposal, which “offers comprehensive services to federal agencies … in the marketing and sale of federal real estate at a cost lower than commercial vendors.”

By now, the pattern should be clear: The catastrophic consequences of our brave new neoliberal world are global, with a notable exception provided by the descendants of those who were once some of planet’s most violent predators.

On the institutionalization of extreme inequality


Here are two takes on one of the key issues of the day, the captuire of global wealth by a handful of oligarchs.

Our first take is graphic, from David Horsey of the Los Angeles Times:

BLOG Sharing

Our second takes comes from Bill Moyers and Nobel economics laureate and New York Times columnist Paul Krugman and is sparked by a new and important book, Capital in the Twenty-First Century by French economist Thomas Piketty [the source of our second Chart of the day, immediately below this post].

From Moyers & Company:

What the 1% Don’t Want You to Know

Program note:

Economist Paul Krugman explains how the United States is becoming an oligarchy – the very system our founders revolted against.

From the transcript:

BILL MOYERS: Inequality’s been on the table for a long time. You’ve written extensively, others have, too. I mean, it’s a familiar issue, but what explains that this book has now become a phenomenon?

PAUL KRUGMAN: Actually, a lot of what we know about inequality actually comes from him, because he’s been an invisible presence behind a lot. So when you talk about the 1 percent, you’re actually to a larger extent reflecting his prior work. But what he’s really done now is he said, “Even those of you who talk about the 1 percent, you don’t really get what’s going on. You’re living in the past. You’re living in the ’80s. You think that Gordon Gekko is the future.”

And Gordon Gekko is a bad guy, he’s a predator. But he’s a self-made predator. And right now, what we’re really talking about is we’re talking about Gordon Gekko’s son or daughter. We’re talking about inherited wealth playing an ever-growing role. So he’s telling us that we are on the road not just to a highly unequal society, but to a society of an oligarchy. A society of inherited wealth, “patrimonial capitalism.” And he does it with an enormous amount of documentation and it’s a revelation. I mean, even for someone like me, it’s a revelation.

BILL MOYERS: I was going to ask, what could– what has Paul Krugman had to learn from this book?

PAUL KRUGMAN: Even the title, the first word in the title, “capital.” We stopped talking about capital. Even people like me stopped talking about capital because we thought it was all about human capital. We thought it was all about earnings. We thought that the wealthy were people who one way or another found a way to make a lot of money.

And we knew that that wasn’t always true. We knew that in the Gilded Age or in the Belle Époque in Europe, which he prefers to talk about. That high incomes were mostly a result of having lots and lots of assets. But we sort of said, “Well, that’s not the way things work anymore.” And he says, “Oh yeah? It turns out that you’re wrong.” That’s true, that right now, a lot of high incomes in America are people who didn’t start out all that rich. But we’re rapidly moving towards a state where inherited wealth dominates. I didn’t know that. I really was– I should’ve known it. I should’ve thought about it, but I didn’t. And so then here comes this book with– I mean, it’s beautiful– absolutely analytically beautiful, if that makes any sense at all.

BILL MOYERS: As you know, I’m no economist, but I found this book, as I said in the opening, just very readable and suddenly there would be this moment of epiphany.

PAUL KRUGMAN: Yeah, it’s a real “eureka” book. You suddenly say, “Oh, this is not– the world is not the way I saw it.” The world in fact has moved on a long way in the last 25 years and not in a direction you’re going to like because we are seeing not only great disparities in income and wealth, but we’re seeing them get entrenched. We’re seeing them become inequalities that will be transferred across generations. We are becoming very much the kind of society we imagine we’re nothing like.

BILL MOYERS: Here’s Piketty’s main point: capital tends to produce real returns of 4 to 5 percent, and economic growth is much slower. What’s the practical result of that?

PAUL KRUGMAN: What that means is that if you have a large fortune, or a family has a large fortune, they can — the inheritors of that large fortune — can live very, very well. They can live an extraordinary standard of living and still put a large fraction of the income from that fortune aside and the fortune will grow faster than the economy.

So the big dynastic fortunes tend to take an ever-growing share of total, national wealth. So once you– when you have a situation where the returns on capital are pretty high and the growth rate of the economy is not that high, you have a situation in which not only can people live well off inherited wealth, but they can actually pass on to the next generation even more, an even a higher share.

And so it’s all, in his terms, “r” the rate of return on capital, and “g” the rate of growth of the economy. And when you have a high r, low g economy, which is what we now have, then you’re talking not– you’re talking about a situation in which dynasties come increasingly to increasingly to dominate the top of the economic spectrum and a tiny fraction of the population ends up very dominant.

BILL MOYERS: What’s the realistic impact of this on working people?

PAUL KRUGMAN: There’s a direct impact, which is that part of income is always going to go to labor, although that seems to be a diminishing fraction. But the part that comes from capital is going to be in the hands of a very few people. The other thing, which I think is critically important, that he talks about more towards the end of the book is political economy.

That when you have — Teddy Roosevelt could’ve told you and did — that when you have a few people who are so wealthy that they can effectively buy the political system, the political system is going to tend to serve their interests. And that is going to reinforce this shift of income and wealth towards the top.

Chart of the day II: The New Deal, undone


From Economist Thomas Piketty via Quartz:

BLOG Hasppy days

Just some random headlines. . .or are they?


First, from the London Telegraph:

Infants ‘unable to use toy building blocks’ due to iPad addiction

The Association of Teachers and Lecturers warn that rising numbers of children are unable to perform simple tasks such as using building blocks because of overexposure to iPads

Next, from the London Daily Mail:

Pregnant women who take SSRI antidepressants are three times more likely to have a child with autism

  • The effect of  the drugs is particularity pronounced during third trimester
  • Researchers suggest rising rates of autism and SSRI use may be linked

Next up, from the Los Angeles Times:

Household rat poison linked to death and disease in wildlife

Evidence of rat poison is found in a sickly puma whose territory includes Griffith Park. Researchers suspect a link between poisons and mange.

During nearly two decades of research in and around the Santa Monica Mountains National Recreation Area, park service scientists have documented widespread exposure in carnivores to common household poisons. Of 140 bobcats, coyotes and mountain lions evaluated, 88% tested positive for one or more anticoagulant compounds. Scores of animals are known to have died from internal bleeding, researchers said.

The poisons also affect protected or endangered species including golden eagles, northern spotted owls and San Joaquin kit foxes.

And the Los Angeles Times again:

EPA drastically underestimates methane released at drilling sites

Drilling operations at several natural gas wells in southwestern Pennsylvania released methane into the atmosphere at rates that were 100 to 1,000 times greater than federal regulators had estimated, new research shows.

Using a plane that was specially equipped to measure greenhouse gas emissions in the air, scientists found that drilling activities at seven well pads in the booming Marcellus shale formation emitted 34 grams of methane per second, on average. The Environmental Protection Agency has estimated that such drilling releases between 0.04 grams and 0.30 grams of methane per second.

The study, published Monday in the Proceedings of the National Academy of Sciences, adds to a growing body of research that suggests the EPA is gravely underestimating methane emissions from oil and gas operations. The agency is expected to issue its own analysis of methane emissions from the oil and gas sector as early as Tuesday, which will give outside experts a chance to assess how well regulators understand the problem.

Next, from the East Bay Express:

Environmental Activist Forcibly Removed from Chevron-Sponsored Event in Oakland for Mocking the Company’s ‘News’ Website

Security guards forcibly removed Paul Paz y Miño, an employee of the environmental group Amazon Watch, from a Chevron-sponsored event today in Oakland because he was carrying flyers that he said he had planned to distribute outside the building after the program. When Miño, who had paid $75 for a ticket to the public event, refused to leave, guards forcibly removed him.

Called the “Illuminating Ideas: ENERGY & Sustainability Summit,” the economic development event was held at the Oakland Marriott. It was organized by the Oakland Metropolitan Chamber of Commerce and primarily sponsored by Chevron. PG&E, Bank of America, and Merrill Lynch were also sponsors. The event offered several panel discussions on green infrastructure, energy smart cities, and private and public partnerships. The keynote speaker was Jon Wellinghoff, the immediate past president of the Federal Energy Regulatory Commission. Oakland Mayor Jean Quan was also a speaker at the event.

And them this, from VentureBeat:

The future of Silicon Valley may lie in the mountains of Afghanistan

The future of Silicon Valley’s technological prowess may well lie in the war-scarred mountains and salt flats of Western Afghanistan.

United States Geological Survey teams discovered one of the world’s largest untapped reserves of lithium there six years ago. The USGS was scouting the volatile country at the behest of the U.S. Department of Defense’s Task Force for Business and Stability Operations. Lithium is a soft metal used to make the lithium-ion and lithium-polymer batteries essential for powering desktop computers, laptops, smartphones, and tablets. And increasingly, electric cars like Tesla’s.

The vast discovery could very well propel Afghanistan — a war-ravaged land with a population of 31 million largely uneducated Pashtuns and Tajiks, and whose primary exports today are opium, hashish, and marijuana — into becoming the world’s next “Saudi Arabia of lithium,” according to an internal Pentagon memo cited by the New York Times.

Finally, from the New York Times:

The Environmentalist Who Decided It Was Too Late

After decades of fervent environmental activism, Paul Kingsnorth concluded that collapse is inevitable. So now what?

Okay, so maybe they’re not such random headlines after all.

Rather, they are examples that should stir a form of thinking that the late UC Santa Barbara ecologist Garrett Hardin called ecolacy, the much-needed complement to the more commonly cultivated skills of literacy and numeracy.

Hardin, who was tragically wrong about what he called “the tragedy of the commons” [mistaking what economists term a free-for-all for the community-engendered commons], was spot on in his formulation of his First Law of Human Ecology, which states with deceptive simplicity: “You cannot do only one thing.”

Many of the headlines we have cited are examples of Hardin’s law, proof that actions hailed as desirable in one context can be devastating in the second. . .as in children skilled at screens and inept at manipulating real world objects. . . and as mothers relieved of depression and rewarded with the depressing burden of autistic offspring. . .and as when posons designed to kills household vermnin spread to destroy the wildlife around us.

Another grouping reminds us of the distortion of information to suit the interests of the few at the peril of the many. . .as when producing a fuel touted as a way to cut greenhouse gases actually produces vastly more atmosphere-imperiling emissions that the corporateers would have us believe. . .and when a corporation that touts itself as a bastion of community responsibility censors those who proclaim otherwise. . .and when a glimpse is revealed of deeper causes behind devastating flag-draped bloodshed.

The last headline speaks for itself.

Chart of the day: Debunking the Greek recovery


The latest construction numbers from the Hellenic Statistical Authority [PDF]. Click on the image to enlarge:

BLOG Greek

David Horsey: The neoliberal numbers game


From the editorial cartoonist of the Los Angeles Times:

BLOG Horsey

Random thoughts on our plutocratic senator


Dianne Feinstein’s everything Ike warned us about in his farewell address to the nation, the embodied fusion of the elements of that military/industrial/academic [MIA] complex that so alarmed the old general during the latter years of his presidency.

And, yes, Ike included academia in his warning, something we’ve sadly forgotten over the years as the problem itself has grown exponentially.

Feinstein and her partner in pilferage — spouse/University of California regent/real estate peddler and developer/defense contract/investment bankster Richard “Greasy Thumb” Blum — are exemplars of the demise of the last semblance of a government created to serve the common good.

That the press invariably describes DiFi as a “liberal” also reveals the utter debasement of the mainstream media and the corruption of language itself.

DiFi and Tricky Dickie are the incarnations of something new, a class of beings we call, for lack of a better term, lootocrats. . .public servants devoted to turning the public into servants of their own insatiable lust for power and pelf.

That they are Democrats is merely a delicious irony.

[And isn't it ironic that DiFi, who serves on the key Senate committees of the MIA complex, only became upset with nation's spooks when she discovered they were also spying on her?]

What’s truly remarkable are the sheer nakedness of the dastardly duo’s greed, their willingness to cast off ever the slightest shred of camouflage as they go about gutting the commons and ensuring that there fellow lootocrats will scoop up every bit of spare change remaining in the pockets of an increasingly impoverished public.

We suspect one major reason that the pair has been able to get away with conduct that would have raised headlines and generated screaming headlines in years past is the finale decline of the American press. Here in California, the press corps has been gutted, with scores of newspaper closed, radio and television news staffs laid off in droves, and the remainder terrified for their jobs and spread so thin that the day-to-day coverage of the consequences of political actions has been diluted to near-homeopathic levels of enfeeblement.

In a sane world, Feinstein and Blum would be clapped in irons, stripped of their ill-gotten gains, and either administered a nice veneer of tar and feathers or locked away with far more honorable thieves, murderers, and arsonists to be subjected to their tender ministrations.

It’s really that bad.

Instead, their names adorn public institutions.

The last time the couple ran into any troubled was fourteen years ago, when she made an unsuccessful run against Pete Wilson for the California governorship. It was the state’s Fair Political Practices Commission which caught them.

From the FPPC website:

Dianne Feinstein, an unsuccessful candidate for Governor in 1990, her committee, and the committee treasurer failed to properly report campaign contributions and expenditures. The campaign statements did not disclose expenditures of $3.5 million, accrued expenses of $380,000, and subvendor payments of $3.4 million. The guarantor of loans totaling $2.9 million, Feinstein’s husband, Richard Blum, was not disclosed. Monetary and non-monetary contributions totaling $815,000 were not reported on campaign statements and late contributions of $90,000 were not reported. Notices were not sent to 166 major contributors who made contributions of $5,000 or more advising them of possible filing requirements.

Not a lot of money to folks like them, but it ain’t chump change either.

Meanwhile, their wealth keeps growing as Blum makes tidy profits selling off post offices to his pals and selling degrees to students at his private colleges financed by federal loans indenturing their lives for years to comes, all thanks to the public purse.

Meanwhile, Blum played a key role in completing the capture of the the University of California by his cronies from the dark side when the former Director of Homeland Security was hired to run what had been the world’s finest public education system.

There oughta be a law. . .

Chart of the day: Bubbling away furiously


It’s baaaaaaack. Yep, that old housing bubble is once again in full bloom. Click on the image to enlarge.

From Reuters:

BLOG Bubble

And at the the same time, a headline from the Washington Post notes a parallel phenomenon, the decline vulture purchases of the homes left vacant during the Bush II collapse:

Investment firms curbing their home buying in California

Among the 20 firms buying the most California real estate since January 2012, purchases are down more than 70% compared with last year in each of the last four months.

With the bargains gone, the vultures are preparing to profit from their greed as rent soars and the economy remains in the doldrums, adding yet more pressure on the nation’s dying middle classes.

Either way, good news for senatorial spouse Richard “Greasy Thumb” Blum [see below], whose massive real estate firm will reap more profits along with the lucrative mother lode he’s captured with the sale of the nation’s landmark post offices.