Economy
Related: About this forumWeekend Economists Volvemos a Puerto Rico May 22-25, 2015
As promised, the survey of La Isla del Encanto continues...
Christopher Columbus put Puerto Rico on the map, so to speak. He brought disease, slavery, Catholicism and Capitalism to the tribes that had lived forever without them.
But in 1898, Republican President William McKinley declared war on Spain (the Spanish-American War) and Puerto Rico, long desired by the Navy as a fueling station, was one of the plums of that victorious conquest....
Revolts against Spanish rule had occurred for some years in Cuba. There had been war scares before, as in the Virginius Affair in 1873. In the late 1890s, US public opinion was agitated by anti-Spanish propaganda led by journalists such as Joseph Pulitzer and William Hearst which used yellow journalism to criticize Spanish administration of Cuba. After the mysterious sinking of the US Navy battleship Maine in Havana harbor, political pressures from the Democratic Party and certain industrialists pushed the administration of Republican President William McKinley into a war he had wished to avoid. Compromise was sought by Spain, but rejected by the United States which sent an ultimatum to Spain demanding it surrender control of Cuba. First Madrid, then Washington, formally declared war.
Although the main issue was Cuban independence, the ten-week war was fought in both the Caribbean and the Pacific. US naval power proved decisive, allowing expeditionary forces to disembark in Cuba against a Spanish garrison already brought to its knees by nationwide Cuban insurgent attacks and further wasted by yellow fever. Numerically superior Cuban, Philippine, and US forces obtained the surrender of Santiago de Cuba and Manila despite the good performance of some Spanish infantry units and fierce fighting for positions such as San Juan Hill. With two obsolete Spanish squadrons sunk in Santiago de Cuba and Manila Bay and a third, more modern fleet recalled home to protect the Spanish coasts, Madrid sued for peace.
The result was the 1898 Treaty of Paris, negotiated on terms favorable to the US, which allowed it temporary control of Cuba, and ceded indefinite colonial authority over Puerto Rico, Guam and the Philippine islands from Spain. The defeat and collapse of the Spanish Empire was a profound shock to Spain's national psyche, and provoked a thorough philosophical and artistic revaluation of Spanish society known as the Generation of '98. The United States gained several island possessions spanning the globe and a rancorous new debate over the wisdom of expansionism.
The war began exactly fifty-two years after the MexicanAmerican War began, and was one of only five US wars to have been formally declared by Congress.
And things have been downhill ever since....our Instant Empire!
Demeter
(85,373 posts)but check back later. I've been taken by surprise before, and Mercury is retrograde.
Demeter
(85,373 posts)more of His light; and I saw things that he
who from that height descends, forgets or can
not speak.
As Cristoforetti spun around the globe at the rate of seventeen thousand miles an hour, her reading was beamed back to earth and shown in a movie theater in Florence. Ten days later, the actor Roberto Benigni recited the last canto of Paradiso in the Italian Senate. His selection included the poems famous closing lines:
desire and will were moved already like
a wheel revolving uniformly by
the Love that moves the sun and the other stars.
The senators gave the comedian a standing ovation. That same day, Pope Francis made some brief remarks about the poet, officially joining what he called the chorus of those who believe Dante Alighieri is an artist of the highest universal value. He can, the Holy Father added, help us get through the many dark woods we come across in our world.
Dantes seven-hundred-and-fiftieth birthday is sometime in the coming monthhe was born, he tells us in Paradiso, under the sign of Geminiand, to mark the occasion, well over a hundred events are planned. These include everything from the minting of a new two-euro coin, embossed with the poets profile, to a selfie-con-Dante campaign. (Cardboard cutouts of the poet are being set up in Florence, and visitors are encouraged to post pictures of themselves with them using the hashtag #dante750.) Theres talk of extending the celebrations to 2021, the seven-hundredth anniversary of the poets death.
I teach Dante to American undergraduates, and I struggle to convey to them his place in Italian culture. The obvious comparison is to Shakespeare, but this is like trying to make sense of Mozart by means of Coltrane: the number of centuries that divide Dante from Shakespeare is practically as large as the number that separates Shakespeare from us...Italian kids first encounter Dante at school, when theyre in the equivalent of seventh grade. They return to him in the eleventh grade to study the Inferno in more depth. In twelfth grade, they work on the Purgatorio. Secondary schoolliceolasts five years, and so in what might be considered the thirteenth grade, the text for the year is the Paradiso. I recently asked the high-school-aged son of an Italian friend of mine about the experience. Its annoying, boring, and it never ends, he told me. But then you get to like it. At the college level, the study of Dante ratchets up by slowing down. In the late nineteen-eighties, I spent a semester in Florence, where I sat in on a Dante course at the university. The entire term was devoted to the analysis of a single canto. As it happened, the canto was Inferno 19, which is devoted to simony. Dante reserves a special hole in the third sub-circle of the eighth circle of Hell for corrupt Popes; they are stuffed into it, one after another, headfirst. Their feet are then lit on fire. Among the issues the class discussed at length was how, exactly, new Popes could be accommodated. Had space been left open for all those that would come along? Or did each new arrival compress his predecessor into some kind of pontifical pesto?
Either because of or despite this pedagogical program, Italians, to a surprising degree, stick with Dante. Since 2006, Benigni has been staging hepped-up variations on the traditional lectura dantis, a form that goes back all the way to the fourteenth century, to Boccaccio, who lectured on the poem in Florences Santo Stefano church. A typical lectura opens with a detailed gloss of a particular canto, followed by a dramatic reading of it. Benignis performances in Rome, Florence, Verona, and other cities have been watched live by more than a million people. Millions more have tuned into them on TV. Similar, if stodgier, lectures are delivered all over Italy at societies set up expressly to foster appreciation of the Divine Comedy. In Rome, for example, the Casa di Dante sponsors a lectura dantis every Sunday at 11 A.M. Owing to holidays and long summer breaks, six years of Sundays are required to get through the poem, at which point the whole process starts over again. Its not unusual for two hundred Romans to attend. Some are liceo students, perhaps there under duress, but most are middle-aged and beyond. After one recent session at the Casa di Dante, I asked the white-haired gentleman sitting next to me what everyone was doing there. I dont know about the others, he said. I always come. There are, of course, many possible explanations for Dantes hold on Italy, including, after seven hundred and fifty years, sheer momentum. Language, too, clearly plays a part. When Dante began work on the Comedy, none of the different dialects spoken in Italys many city-states had any particular claim to preëminence. Latin, meanwhile, was the language of the Church and of institutions such as the courts and universities. (Dante wrote De Vulgari Eloquentia, his defense of the vernacular, in Latin.) Such was the force and influence of the Comedy that the Tuscan dialect became Italys literary language and, eventually, its national one. The fact that people in Venice and Palermo could understand Cristoforetti as she read from the Paradiso in space was due, in a quite literal sense, to the poem that she was reading.
For the last nine months, Ive been living in Rome, and the experience has helped me to appreciate another, more subversive side to Dantes appeal. Though he may be force-fed to seventh graders, applauded in the Senate, and praised by the Holy See, Dante is, as a writer, unmistakably anti-authoritarian. He looks around and what he sees is hypocrisy, incompetence, and corruption. And so he strikes out, not just at the Popes, whom he turns upside down and stuffs in a hole, but also at Florences political leaders, whom he throws into a burning tomb, and his own teacher, whom he sets running naked across scorching sand. In 2015, this sort of frustration still feels fresh. Earlier this month the latest World Expo opened in Milan, on the edifying theme of feeding the planet. All spring, the papers have been filled with stories of bid-rigging and extortion. Just the other day, the Expos procurement manager and six other officials were arrested for graft. No one should be surprised, Milans Corriere della Sera editorialized. To express their anger over the billions in public funds lavished on Expo, students went on strike and cars were burned in the streets of Milan. Its hard to know what Dante would have made of flaming Fiats, but it seems likely that he would have sympathized with the protesters: for the abuse of public trust, he prescribed swimming in boiling pitch, and for avarice, an eternity spent rolling stones in circles.
John Kleiner is a professor of English at Williams College.
Demeter
(85,373 posts)Greg Palast is a New York Times bestselling author and fearless investigative journalist whose reports appear on BBC Television Newsnight and in The Guardian. Palast eats the rich and spits them out. Catch his reports and films at www.GregPalast.com, where you can also securely send him your documents marked, "confidential".
President Who? All I knew about this Hugo Chavez guy was that he was an Latin-American jefe, led a bungled coup and was filled with a lot of populist bullshit and a lot of oil.
And I also knew that no one at BBC Newsnight was going to blow the budget for me to fly to South America to talk about a nation that 92 percent of our viewers couldnt find on a map and wouldnt want to.
Send me an email.
There will be a coup. March 15.
The Ides of March. I like that. Arent there always coups down there?
Theyll kill him, undo everything. He needs you to stop it, he wants to explain it to you because he knows you understand.
Actually, youd be surprised at the amount I dont understand at all. So talk.
She did for four hours and wore me down into submission. But back at Newsnight I looked like an idiot when March 15 came and went with just a little gunfire in Caracas.
Three weeks later, the President of Venezuela, Hugo Chavez, was kidnapped and held hostage by the head of Venezuelas Chamber of Commerce. Suddenly the BBC had to get me on a plane.
When I got to the Presidential Palace, Chavez was already back at his desk, though the bullet holes in the palaces walls werent yet filled in.
Chavez told me that he'd agreed to be taken hostage by gunmen on the condition that his staff and their trapped children would be allowed to escape. He was bundled into a helicopter, and when it swerved out to sea he assumed he would be pushed out: I was calm. I was ready.
So who was behind it?
Chavez gave me information on US military attachés who had met with the plotters. While I couldnt verify any specific US directive to seize him, I didnt have to: I had grinning photos of George W Bushs new US Ambassador, Charles Shapiro, congratulating Chavez kidnappers. The question was, why? Why the need to eliminate Chavez, by coup, by bullet, by propaganda, embargo, or, as we later discovered, by screwing with Venezuelas vote count?
No doubt that for Bushs oil-o-crats, Chavez doubling the royalties paid by Exxon and Chevron was worth the price of a bullet; but it was no more than the amount that Sarah Palin would seize from the oil companies when she ruled Alaska. So what was it? The answer was in the movie Network.
It is ebb and flow, tidal gravity. You are an old man who thinks in terms of national and peoples. THERE ARE NO NATIONS. There are no peoples. There is only ONE HOLISTIC SYSTEM OF SYSTEM, one vast and immense, interwoven, interacting, multi-variate, multi-national dominion of dollars. Petro-dollars. Electro-dollars. Multi-dollars. IT IS THE INTERNATIONAL SYSTEM OF CURRENCY which determines the totality of life on this planet. Am I getting through to you?
Chavez had defied gravity, overpowered the tide. Venezuela earned billions in petro-dollars from the USA but then, Chavez refused to give it back. Third World nations are not supposed to keep the dollars paid to suck out their oil and mineral blood. For every dollar US consumers pay the Saudis for their oil, about $1.24 is given back as Saudis return the funds by purchasing US Treasury debt or hunks of US banks, CitiCorp for one.
Above: World Capital Flow 2005, from Armed Madhouse by Greg Palast
In 2005, the US spent $227 billion in Latin America, sapping its properties and resources. But the money turned right around and, added to the funds sent to Miami by Latin Americas elite, immediately became a $379 million loan to the US Treasury and financiers. Argentina leant the US at 4 percent interest, then had to borrow its own money back at 16 percent the whirring wheel, this grinder, left school teachers in Buenos Aires hunting in garbage cans for food. Riots followed and in Peru, Ecuador, Argentina and elsewhere this led to tanks in the street, currency collapse, crisis and the rescue by the IMF. Rescue meant forcing the mass sell-off of state industries, from oil to water systems, to the crushing of labour unions and to swallowing the whole bottle of poisons kept by the elite of the Northern Hemisphere for just such occasions...And that was the plan. Literally. I've held the proof in my hands, about five thousand pages of financial agreements, all labelled confidential and not to be distributed except by authorised persons, which bore benign titles like World Bank Poverty Reduction Strategy, Argentina.
Why would the IMF, World Bank and the bankers not want to make their wonderful plans for reducing poverty public? It was for the same reason the finance ministers who signed the documents didnt even tell their own presidents: they were in fact reduce-to-poverty plans, complete resource surrender. For these deliberately bankrupted nations, it was sign or starve. Until Hugo Chavez came along. Early on, Chavez withdrew $20 billion of Venezuelas money leant to the US Federal Reserve, to create a giant micro-lending programme for his citizens. Then he went a step too far, establishing what the Wall Street Journal called, a tropical IMF. In 2000 and after, when the IMF and banks moved to financially strangle these nations by making their debts unsalable, Hugo Chavez would roll up in his oil-gilded chariot. He effectively underwrote Argentinas debt, providing 250million dollars worth of loans, and assistance to Ecuador. After Enron seized Argentinas water system and Occidental seized Ecuadors oil fields, Argentinas President Nestor Kirchner, followed by Ecuadors Correa, told US banks to go fuck themselves. And the IMF, too.
Then there was the big one: Brazil. The World Bank/IMF Poverty Reduction Strategy for Brazil required the nation to close its publicly-owned banks, to sell off its vast oil properties, to give away its power industry and, to please the new foreign owners, slash wages and pensions. But with Chavez prepared to back up its new President, Lula Ignacio de Silva, the mighty little man from the Socialist Workers Party could tell the IMF to stick it where the free market dont shine. For the first time in contemporary history, resource states refused to give back the money received for their resource. At Chavez funeral, Lula, former President Ignacio de Silva of Brazil, praised this as Chavez most revolutionary act.
Now, instead of billions flowing North, Latin American capital was staying in Latin America. It is delicious irony that the European and American financiers, fleeing from the economic conflagration theyd ignited in their home countries, are loading their loot onto planes for Brazil. And that Venezuelas central bank made a mint on its intra-continental loans.
And so, a coup was called for.
In 2002, Chavez oil company chief, Ali Rodriguez, told me: America cant let us stay in power. We are the exception to the New Globalisation Order. If we succeed, we are an example to all the Americas.
That you were, Hugo Chavez. That you are, Venezuela. And all the Americas are ready.
VIVA PARA SIEMPRE, CHAVEZ!
Demeter
(85,373 posts)ONE GOOD PALAST DESERVES ANOTHER
http://www.vice.com/en_uk/read/larry-summers-and-the-secret-end-game-memo
Demeter
(85,373 posts)Jim Hamilton is defending his recent work calling into question the sustainability of the US debt load. Brad DeLong takes a first shot at Hamilton's post here. I take issue with this paragraph:
This ignores the possibility of financial repression - meaning that the government can force yields on its own debt lower, thereby ensuring that inflation, even anticipated inflation, decreases real interest rates. Back to another post by DeLong:
Let me spell (e) out a little bit. If investors start to fear that the U.S. debt trajectory is truly unstable, the immediate consequence is a fall in the dollar and an export boom, with somewhat higher domestic inflation. Because the U.S. government regulates the financial system, it can set reserve requirements where it likes--it can thus use its reserve requirements to force banks to hold Treasuries, and if it doesn't like the interest rate at which banks are holding Treasuries, it can up reserve requirements some more.
No, financial repression is not ideal. But it is not a disaster like a collapse of confidence in the debt and the currency....
Arguably, we are currently witnessing a real-time example in Japan's Abenomics policy mix. The Yen has depreciated significantly, consistent with expectations of inflation. And there is even growing evidence that wages are responding as well. From FT Alphaville:
And actually, it might be catching on. The FTs Ben McLannahan wrote in early February that the decision by convenience store chain Lawson Inc to raise wages of two-thirds of its staff by 3 per cent could be quite significant..
According to Hamilton, if we have higher anticipated inflation, we should see higher nominal interest rates on government debt, thereby debt sustainability is deteriorating. But alas:
http://economistsview.typepad.com/.a/6a00d83451b33869e2017ee94545e4970d-500wi
Time and time again, Japan sticks out like a sore thumb that those preaching the unsustainability of government debt want to sweep under the rug with the "Japan is a special case" story (a country fixed effect). But it seems more likely that Japan's economy is behaving exactly as you might expect given that it issues debt in its own currency. In other words, Japan is just a normal case pushed to the extreme.
Demeter
(85,373 posts)To justify the president's War on Terror policies, the Washington Post columnist spreads a demonstrable myth...
Charles Krauthammer's Washington Post column MARCH 14, 2013, which calls on Congress to enact new legislation authorizing and regulating Obama's drone attacks, is actually worth reading. That's because it highlights the central fact about the Obama legacy when it comes to US militarism, war, and civil liberties. Referencing the monumental shift in how Democrats think about such matters now as compared to the Bush years, he writes:
"Necessity having led the Bush and Obama administrations to the use of near-identical weapons and tactics, a national consensus has been forged. Let's make it open."
That Obama has ushered in a "bipartisan consensus" for these policies - transforming them from the divisive symbols of right-wing extremism into the unchallenged framework of both parties' establishments - is indisputable, one of the most consequential aspects of his presidency. But Krauthammer's real purpose with this column is to mock and excoriate Rand Paul's anti-drone filibuster. As the New York Times describes, there is an increasingly acrimonious split in the GOP about the policies of militarism and civil liberties enacted in the 9/11 era, and neocons like Krauthammer are petrified that the (relative) anti-war and pro-due-process stances articulated by Paul will gain traction. Krauthammer notes that, contrary to the claims of many progressives, Paul's opposition was not merely to killing Americans on US soil, but was broader: it was about assassinating citizens without due process anywhere they may be found. Referencing a Washington Post Op-Ed in which Paul declared that "no American should be killed by a drone without first being charged with a crime," Krauthammer writes: "note the absence of the restrictive clause: 'on American soil'". Here's how Krauthammer describes Paul's real purpose in launching the filibuster:
That Paul became the first US Senator on the Senate floor to utter the name "Abdulrahaman Awlaki" - the 16-year-old US-born citizen killed by a US drone in Yemen - bolsters Krauthammer's claim that the Paul filibuster was about more than just the use of force on US soil, but rather posed a challenge to the War on Terror premises generally. That is precisely why Krauthammer - along with all other neocons and, notably, many Democratic Party Obama-supporters - are desperate to discredit the Paul filibuster and the sentiments it stoked: regardless of Paul's motives, the filibuster called into question both the wisdom and legality of the entire Endless War approach to Terrorism. But to discredit this, Krauthammer makes a claim about the US Constitution that is so patently false as to be retraction-worthy. He writes (emphasis added):
That italicizied claim from Krauthammer - that "outside American soil, the Constitution does not rule" - is a very common assertion and thus widely believed. But it is factually false. And there can be no reasonable dispute about this. To begin with, think about what it would mean if Krauthammer's claim were true: does anyone think it would be constitutionally permissible under the First Amendment for the US government to wait until an American critic of the Pentagon travels on vacation to London and then kill him, or to bomb a bureau of the New York Times located in Paris in retaliation for a news article it disliked, or to indefinitely detain with no trial an American who travels to Beijing or Lima or Oslo and who is suspected of committing a crime? Anyone who believes what Charles Krauthammer said this morning - "Outside American soil, the Constitution does not rule" - would have to take the patently ludicrous position that such acts would be perfectly constitutional.
But to see how false is Krauthammer's claim, it's unnecessary to engage in that kind of reasoning. The law is crystal clear on this matter. In 1957, the US Supreme Court decided the case of Reid v. Covert in which this exact question was conclusively decided: does the Bill of Rights restrict what the US Government does to US citizens on foreign soil? The Court answered the question as decisively and unambiguously as the English language permits (emphasis added):
How can any Washington Post editor read what the Supreme Court said and not compel a retraction of Krauthammer's claim?
MORE RIGHTEOUS RAGE AND CITATIONS AT LINK
Demeter
(85,373 posts)President Lyndon Johnson knew of a plan by Richard Nixon to disrupt Vietnam War peace talks through 'treason,' but ultimately decided not to speak out about it, White House recordings have revealed.
The tapes, dating back to Johnson's last months in office between May 1968 and January 1969, show that Johnson was onto Nixon, who at the time was the Republican nominee for president.
According to the tapes, Johnson learned through FBI wiretaps that Nixon had played a role in getting South Vietnam to withdraw from peace talks in Paris that would effectively end the Vietnam War, and was therefore guilty of treason.
Read more: http://www.dailymail.co.uk/news/article-2294821/Lyndon-Johnson-White-House-tapes-reveal-knew-Richard-Nixons-treason.html#ixzz3auSMQnLB
Demeter
(85,373 posts)But, we do have 3 days to fill....it can't all be sunbathing and BBQ (especially if it rains constantly, as promised).
And it is interesting to look back on newsletters from 2 years ago to see which issues became inflamed, and which were quenched by subsequent events, and which plague us today and see where they came from....
Demeter
(85,373 posts)http://www.businessinsider.com/cyprus-bailout-risks-europe-bank-runs-2013-3#ixzz3auTlEqUa
You can be forgiven for thinking that you don't need to give a hoot about what's going on in Cyprus this weekend. After all, it's just a little island somewhere in the Mediterranean. But what's going on in Cyprus could actually matter not just to the rest of Europe, but to the rest of the world. Here's the short version of what's happening:
Cyprus's government tried to explain this deal by observing that it was better than the alternative: Immediate bankruptcy and closure of the major banks. In that scenario, depositors would lose a lot more of their money. Businesses would go bankrupt. And tens of thousands of people would be instantly thrown out of work. But, still, not surprisingly, news that deposits in Cyprus's banks would be seized triggered an immediate run on the banks. Depositors rushed to ATMs and tried to withdraw their money before it could be seized. But the ATMs weren't working. And the government has now made it impossible to transfer money out of the country. So, assuming Cyprus's government approves the deal (still pending), depositors will have some of their money seized on Tuesday morning.
Now, half of these depositors are said to be Russian oligarchs and other non-residents. And unless you happen to have the misfortune of having an account in a Cyprus bank, you may not care much whether these depositors have their money seized. After all, that was the risk they took for storing their money in bankrupt banks, right? Well, yes, that was the risk they took. But ever since the Great Depression wiped out a big percentage of the world's banks, vaporizing the bank depositors' savings in the process, banking system regulators have tried to do everything they can to protect bank depositors. And they are smart to do so. Because the moment depositors think that there is risk to their savings, they rush to banks to yank their money out. That's called a run on the bank. And since no bank anywhere has enough cash on hand to pay off all its depositors at once, runs on the bank cause banks to go bust.
That's what happened to hundreds of banks in the Great Depression.
And it's what happened to Bear Stearns, Lehman Brothers, and other huge banks during the financial crisis (though, with Bear and Lehman, the folks who yanked their money out weren't mom and pop depositors but other big financial institutions). It's what threatened to bring the entire U.S. financial system to its knees. And it's why the U.S. and European governments have been frantically bailing out banks ever since. But now, thanks to Eurozone's bizarre decision in Cyprus, the illusion that depositors don't need to yank their money out of threatened banks because they'll be protected has been shattered. Depositors in Cyprus banks will lose some of their deposits. They will be furious about this. And they will, rightly, feel that it is grossly unfair because depositors in the bailed-out banks in Ireland, Greece, etc. didn't lose their money. And they will feel like fools for not having taken their money out.
And ... here's the important part ...
Other depositors at weak banks all over Europe, in places like Spain, Italy, and Greece, will rightly wonder whether this is the beginning of a new era of bank bailouts, an era in which bank depositors are going lose some of their money. What do you think those other depositors in Spain, Italy, Greece, etc., are going to feel like doing when they realize that, if their banks ever need a bailout, they might have their deposits seized? That's right. They're going to feel like yanking their money out of their banks. And if some of them yank their money out of their banks, well then the financial condition of those banks will go from weak to insolvent. And the banks will go rushing to their governments and the Eurozone for help.
And if, god forbid, the Eurozone decides to seize the deposits of more bank depositors ...
Well, then, a good portion of Europe is going to suddenly experience a good old-fashioned bank run. That, to put it mildly, could be a disaster. It could bring the European financial crisis, which has lurched from one flare-up to another for most of the past five years, to a rather sudden head. How much would it cost for the powers-that-be to bail out all of Europe's weak banks at once? A lot. More than the Eurozone has in its emergency lending facilities, certainly. And more than the International Monetary Fund has on hand. So the U.S. would probably have to get involved. And, regardless of whether the U.S. needed to get involved, the European economy would likely suffer the equivalent of a heart attack. That wouldn't be good for the U.S. economy. Or the Chinese economy. Or any other economy that sells things to Europe.
So, you can see, this little decision to seize a little money from bank depositors in the little island of Cyprus could be a much bigger deal than you think. It could conceivably precipitate a run on weak European banks. And a run on weak European banks could hammer the European economy and then the economy of Europe's trading partners. And it could cause global markets to crash. So keep an eye on what's going on over there in Cyprus. It's potentially much more important than it seems.
http://www.businessinsider.com/cyprus-bailout-statement-by-the-president-of-the-republic-mr-nicos-anastasiades-2013-3#ixzz3auVGXWYr
Ekathimerini has this report:
The Cypriot government is preparing the bill to be tabled in Parliament probably on Sunday in an emergency session, as everything will have to be voted by Monday night for Cypriot banks to open on Tuesday.
The stakes are incredibly high. Here's a statement from Cypriot President Nicos Anastasiades warning of total financial collapse and euro exit if there's no deal (via @dsquareddigest).
Full statement from President Anastasiades below the dotted line
-------------------------------------------------------------------------------------------------------
It is well known that the deep economic crisis and the state of emergency in which the country has found itself did not come about in the last fortnight since we have undertaken the administration of the country.
The state of emergency and critical nature of the times do not allow me, as they do not allow anyone, to embark on a blame game.
In the extraordinary meeting of the Eurogroup, we faced decisions that had already been taken and came across faits accomplis through which we were faced with the following dilemmas:
On Tuesday, March 19 we would either choose the catastrophic scenario of disorderly bankruptcy or the scenario of a painful but controlled management of the crisis, which would put a definitive end to the uncertainty and restart our economy.
A possible choice of the catastrophic scenario option would have the following consequences:
1. On Tuesday, March 19, immediately after the holiday weekend, one of the two banks in crisis would cease to operate, since the European Central Bank, following the decision already taken, would terminate the provision of liquidity. The second bank would suspend its work, and neither could avoid collapse. Such a phenomenon would instantly lead 8.000 families to unemployment.
2. The State would be obliged to compensate depositors in response to the obligation regarding guaranteed deposits. The capital required in such a case would amount to about 30 billion euros, which the State would be unable to pay.
3. A proportionate amount corresponding to the deposits of thousands of depositors for deposits over 100.000 Euro, would be led to a vicious cycle of asset liquidation, and these depositors would suffer losses of over 60%.
4. Such an uncontrolled situation would push the whole banking system into collapse with all the attendant consequences.
5. Thousands of small and medium enterprises, and other businesses would be driven to bankruptcy due to their inability to trade.
As a result of the above, the service sector would be led to a complete collapse with a possible exit from the euro. That, in addition to the national weakening of Cyprus, would lead to devaluation of the currency by at least 40%.
The second choice was the controlled management of the crisis, through the decisions taken and which can be summarized as follows:
1. Ensuring the liquidity of the banks and the rescue of the banking system through their recapitalization.
2. Rescuing 8.000 jobs in the banking sector and thousands of others which would be lost as a corollary of not maintaining the operations of banks.
3. Total rescuing of deposits, with just the exchange of a small percentage of savings with shares of the two banks. Currently, these shares do not have their full value, but with the economic recovery they will repay most it not all of the amount that will be cut.
4. This option results in a drastic reduction of public debt, makes it manageable and sustainable and relieves future generations from the burden of repayment.
5. It saves provident and pension funds and avoids taking other tough measures such as wage and pension cuts that were put on the negotiations table.
6. It avoids further recession and the risk of the vicious circle of a second memorandum.
We are not aiming to gloss over the situation. The solution chosen may be painful, but it was the only one that would allow us to continue our lives without adventures. It's a decision that leads to the historic and permanent rescue our economy.
In the next few hours we will all have to take responsibility. Tomorrow I will address the Cypriot people.
Cyprus Stability Levy: Another sad euphemism (updated on 18th March)
Posted on March 17, 2013 by Yanis Varoufakis, current finance minister of Greece
They called it a stability levy, when they meant a tax on Cypriot depositors (including the savings of poor widows and small children) so that they spare the holders of Cypriot government bonds (including hedge funds who are now having a party in Mayfair and New York) as well as minimise potential long-term losses by the European taxpayers. In effect, faced with the prospect of lending to Cyprus a sum equal to its GDP, so as to bail out its banks Ireland-style, the Eurozone balked. They realised, post-Greece and post-Ireland, that something has to give (beyond the minimum working conditions and social welfare provisions of common folk) in order to minimise the size of the aggregate loan. And they chose to hit depositors directly (at a rate of 9.9% if their deposits exceed 100 thousand euros and 6.75% for smaller deposits) before the oncoming austerity-driven plague eats into them instead (as it did in Greece, Ireland and Portugal where savings were used up by stressed households in the daily struggle to survive after jobs and benefits disappeared).
What was astonishing is that, while the peoples of Europe are sick and tired of the gross inequities and regressivity of austerity-fuelled bailouts, they did not set a threshold below which poorer depositors would be untouched. And that they left unaffected the banks bondholders (even though the sums involved in these bonds were small, it was utterly unprincipled to spare them). I have no doubt that this decision will haunt them/us for decades.
What alternatives did the Eurogroup ministers have? Several, is the answer. In the context of their own accounting-like logic (i.e. of hitting depositors) they could discriminate between bank accounts that are insured by Cypriot law and those which are not: So, any account by a citizen of an EU-member state with less than 100 thousand euros (the maximum account insured by the Cypriot state; the equivalent of the FDIC deposit insurance protection) should be left alone. All the other accounts could then be hit by a percentage that would deliver the sum of six to seven billions EU finance ministers wanted to reduce the bailout loan sum by. If Berlin was serious about its willingness to curtail Cyprus banks money laundering activities, while avoiding a tax on the hard earned savings of the poorer Cypriots (that a Lutheran German should see as an ally in restoring puritan ethics), that is what they would have done. But, it is now clear, they were not serious about their own ethics (indeed, had they been serious about Russian money laundering, they would have raised questions about Latvias banks, which are awash with mafia funds).
Of course, while hitting uninsured deposits only (as suggested by the previous paragraph) would have been preferable, it would still not be a solution to the Cypriot drama. The Cypriot economy is in the familiar tail spin that we witnessed in Greece, Portugal, Spain, Ireland and now unfolding in Italy. Even if the bank levy, or bail in, were fairer, the recession would still be fuelled by large scale public expenditure cuts and substantial tax hikes which, taken together, will most certainly lead Cyprus to a dead end. But none of this is specific to Cyprus. In this sense, an alternative strategy for dealing with the islands fall from grace must involve a Gestalt Shift that will allow Europe a different approach throughout the monetary union. Precisely the Shift that Europe seems unwilling to contemplate, thus resorting to ill-conceived decisions like the recent one on Cyprus.
Summary
The Cyprus deal, although marginally better than forcing (Greece/Ireland-style) all of the burden willy-nilly on the taxpayers, is highly destabilising in the medium term. The notion that one sacrifices Cyprus depositors in order to save the depositors in, say, Spain, is of questionable purchase. Moreover, despite the reduction in Cyprus new debt (achieved by bailing in depositors), its debt-recessionary cycle will proceed with increasing ferocity as austerity strings (with which the bailout comes attached) begins to bite.
Europe seems to have only partly learnt its lessons from Greece and Ireland. Europes leaders at least understood that they cannot pile a gigantic loan on an insolvent entity (i.e. an insolvent state that is intertwined with an insolvent banking sector) and expect, through austerity, to stabilise its debt-deflationary spiral. Some haircuts are necessary (although never sufficient) ex ante. What they have not understood is that limiting the bailout loans size is insufficient to prevent the free-fall, even if it buys them some extra time in the short run especially when the limiting is achieved through sacrificing what bonds of trust remain between the EU and its citizens. That they will have to learn the hard way in the months to come.
In short, the recent decision on Cyprus is a touch more realistic than that which was imposed upon Greece, Ireland and Portugal, in the sense that Europe took some (however unfair and inefficient) steps to reduce the loans size. However, by remaining in denial about the true causes of the Eurozones (and Cyprus) instability, and by resorting to euphemisms involving the word stability, they are giving the Crisis another vicious spin.
Postscript
Last time Europe invoked stability in one of its summit decisions was when it created the European Stability Mechanism (ESM). It proved anything but stabilising (as without Mr Draghis ECB and its LTRO-OMT interventions, there would be no Eurozone today). Now we have a stability levy in Cyprus. Its effect will prove equally destabilising in the medium term. It is high time we take another look at stability in the Eurozone and to do so in terms of a closer look at the ESM and how it should be reconfigured. My next post will address the ESM and how to put the S-for-genuine-stability into it for the first time!
Demeter
(85,373 posts)http://www.nytimes.com/2015/03/17/business/international/as-cyprus-recovers-from-banking-crisis-deep-scars-remain.html
The financial world has pretty much moved on since Cyprus was briefly the epicenter of market anxiety. Two years ago this month, the country's banks failed en masse, A.T.M.s were rationing cash, and the integrity of the eurozone hung in the balance. But after a contentious, internationally brokered bail-in, in which for the first time many bank depositors were forced to help pay for a eurozone rescue, Europes policy makers soon found other things to focus on.
Yet Christos Savvides, managing director of an advertising agency in Nicosia, the once booming capital, does not have the luxury of forgetting. Daily reminders include the rows of downtown shops that once sold luxury clothing brands but now stand empty. At one defunct auto dealership, a Renault Laguna sedan, in a thick layer of dust, is still on display behind dirty windows. Mr. Savvides lost hundreds of thousands of euros that he had deposited in Cyprus banks money seized in the rescue program to cover bank losses. Two years later, Mr. Savvidess experience, and that of tens of thousands of other Cypriots caught up in the crisis, offers lessons that could soon apply to Greece if that country is unable to reach agreement with its creditors.
In retrospect, it is clear that European leaders, international creditors and bank regulators could have done more to limit the economic upheaval caused by seizing portions of depositors money above the level of 100,000 euros covered by deposit insurance, a threshold equivalent to roughly $105,000 at the current exchange rate. In fact, a new European Union law written after the crisis would probably have exempted Mr. Savvides, since the deposits in his case actually belonged to his clients. But that law comes too late for him and other Cypriots. One surprising lesson may be that capital controls restrictions on withdrawals and on money transfers out of the country were not as disruptive as feared, but did help prevent even more money from leaving Cyprus. If anything, some economists say, the restrictions should have been applied sooner, before many of the biggest and most sophisticated investors had already fled. More recently, foreign money has been trickling back into Cyprus, including a big bet by Wilbur L. Ross Jr., the American investor known for his appetite for tough cases.
Cyprus also represents what many Europeans see as insensitivity in Brussels, Frankfurt and Berlin toward the people like Mr. Savvides who must suffer the consequences of eurozone crisis management. Among Cypriots, the feeling is widespread that as a country of fewer than one million people, geographically closer to the Middle East than to Europe and with a reputation as a haven for Russian cash, they were used as lab rats to test new and poorly conceived policies.
It was an experiment, said Antonis Paschalides, a Cyprus lawyer and former government minister who is suing the European Commission and the European Central Bank on behalf of Mr. Savvides and others who say their deposits were seized illegally.
We make an example, Mr. Paschalides said, describing what he believes was the attitude of European leaders. If worst comes to worst, Cyprus will collapse.
The parallels with Greece are not perfect. For one thing, the Greek economy, though small by eurozone standards, is more than 10 times the size of Cypruss. And banking played a far bigger role in the Cypriot economy with assets valued at six times gross domestic product before the crash than it does in Greece. In Cyprus, eurozone officials argue, the size of the banking system meant that depositors many of them foreigners had to share the burden because otherwise the country could not afford it. In Mr. Savvides's case, though, the deposits seized were not even his. They belonged to clients of his agency, Ledra Advertising. When the crisis hit, Mr. Savvides was in the process of using the money to buy local television time on their behalf. Mr. Savvides, whose customers include the consumer products giant Unilever, had to absorb the cost. The client says, I sent you the money, Mr. Savvides said in Nicosia last week. 'What you did with the money was your problem.
The financial blow, along with the recession that followed the banking crisis, forced Mr. Savvides to lay off several of his employees, who now number 22. Mr. Savvides said his firm survived only because his clients and creditors were understanding and gave him time to make up the deficit.
Cyprus, too, has managed to survive, and by some measures is doing better than expected. But the economic situation remains dire. Unemployment, though falling from a peak of 16.6 percent in December, is still above 16 percent. The economy shrank 0.7 percent in the fourth quarter of 2014, compared with the previous quarter, the worst performance in the European Union. And more than half the outstanding bank loans in Cyprus are classified as nonperforming a legacy of the crisis and a huge obstacle to growth.
THE MORTGAGE FORECLOSURE CRISIS HAS YET TO OCCUR.....MORE AT LINK
Demeter
(85,373 posts)...German Finance Minister Wolfgang Schaeuble made it clear in an interview on German television today that for him it was not important where the Cypriots raised the money as long as they did raise it.
There are two reasons for this unusual conditionality. First, German politicians and many of their European colleagues suspect Cyprus to be a tax haven and a money-laundering site for Russian oligarchs. Of the 68 billion euros stored in Cypriot bank accounts, around 20 billion ($26 billion) belong to Russian account holders. A report compiled last year by the German secret service, the Bundesnachrichtendienst, claims to have found evidence that Cypriot banks or Russian bank branches based in Cyprus are used to launder illegal money.
The second reason is that Germanys ruling coalition of conservatives and liberals is facing general elections in September, and politicians fear accusations they are sacrificing German tax money to bail out Russian billionaires. There is a lot of, lets say, difficult money in Cypriot accounts, says Mr. Fuchs. We want this to be taxed.
The question now is what the rest of the eurozone and indeed the international financial markets make of the deal. The verdict seems to be a general thumbs-down. Shares in Europe, particularly those of banks, were down today.
And economists warn the Cypriot example could set a risky precedent. American Nobel prize winner Paul Krugman called it a dangerous solution that could cause mass withdrawals in countries like Greece and Italy. And Peter Bofinger, a member of the so-called council of wise men advising the German government on the economy, said in an interview with German magazine Der Spiegel, From now on Europes citizens really have to worry about their money.
Demeter
(85,373 posts)In around 1890, Captain Alfred Thayer Mahan, a member of the Navy War Board and leading U.S. strategic thinker, wrote a book titled The Influence of Sea Power upon History in which he argued for the establishment of a large and powerful navy modeled after the British Royal Navy. Part of his strategy called for the acquisition of colonies in the Caribbean, which would serve as coaling and naval stations. They would serve as strategic points of defense with the construction of a canal through the Isthmus of Panama, to allow easier passage of ships between the Atlantic and Pacific oceans.
William H. Seward, the former Secretary of State under presidents Abraham Lincoln and Ulysses Grant, had also stressed the importance of building a canal in Honduras, Nicaragua or Panama. He suggested that the United States annex the Dominican Republic and purchase Puerto Rico and Cuba. The U.S. Senate did not approve his annexation proposal, and Spain rejected the U.S. offer of 160 million dollars for Puerto Rico and Cuba.
Since 1894, the United States Naval War College had been developing contingency plans for a war with Spain. By 1896, the U.S. Office of Naval Intelligence had prepared a plan that included military operations in Puerto Rican waters. Except for one 1895 plan, which recommended annexation of the island then named Isle of Pines (later renamed as Isla de la Juventud), a recommendation dropped in later planning, plans developed for attacks on Spanish territories were intended as support operations against Spain's forces in and around Cuba. Recent research suggests that the U.S. did consider Puerto Rico valuable as a naval station, and recognized that it and Cuba generated lucrative crops of sugar a valuable commercial commodity which the United States lacked.
On July 25, 1898, during the SpanishAmerican War, the U.S. invaded Puerto Rico with a landing at Guánica. As an outcome of the war, Spain ceded Puerto Rico, along with the Philippines and Guam, then under Spanish sovereignty, to the U.S. under the Treaty of Paris. Spain relinquished sovereignty over Cuba, but did not cede it to the U.S.
The United States and Puerto Rico began a long-standing metropolis-colony relationship. In the early 20th century, Puerto Rico was ruled by the military, with officials including the governor appointed by the President of the United States. The Foraker Act of 1900 gave Puerto Rico a certain amount of civilian popular government, including a popularly elected House of Representatives. (The upper house and governor were appointed by the United States; at the time, the US did not have popular election of senators. Until passage of the Seventeenth Amendment in 1913, most US senators were elected by their respective state legislatures.)
Its judicial system was constructed to follow the American legal system; a Puerto Rico Supreme Court and a United State District Court for the territory were established. It was authorized a non-voting member of Congress, by the title of "Resident Commissioner", who was appointed. In addition, this Act extended all U.S. laws "not locally inapplicable" to Puerto Rico, specifying, in particular, exemption from U.S. Internal Revenue laws.
The Act empowered the civil government to legislate on "all matters of legislative character not locally inapplicable," including the power to modify and repeal any laws then in existence in Puerto Rico, though the U.S. Congress retained the power to annul acts of the Puerto Rico legislature. During an address to the Puerto Rican legislature in 1906, President Theodore Roosevelt recommended that Puerto Ricans become U.S. citizens.
In 1914, the Puerto Rican House of Delegates voted unanimously in favor of independence from the United States, but this was rejected by the U.S. Congress as "unconstitutional," and in violation of the 1900 Foraker Act.
U.S. citizenship & Puerto Rican citizenship
In 1917, the U.S. Congress passed the Jones-Shafroth Act, popularly called the Jones Act, which granted Puerto Ricans U.S. citizenship. Opponents, who included all of the Puerto Rican House of Delegates, which voted unanimously against it, said that the US imposed citizenship in order to draft Puerto Rican men into the army as American entry into World War I became likely.
The same Act provided for a popularly elected Senate to complete a bicameral Legislative Assembly, as well as a bill of rights. It authorized the popular election of the Resident Commissioner to a four-year term.
Natural disasters, including a major earthquake and tsunami in 1918, and several hurricanes, and the Great Depression impoverished the island during the first few decades under U.S. rule. Some political leaders, such as Pedro Albizu Campos, who led the Puerto Rican Nationalist Party, demanded change in relations with the United States. He organized a protest at the University of Puerto Rico in 1935, in which four were killed by police.
In 1936 the US Senator Millard Tydings introduced a bill supporting independence for Puerto Rico, but it was opposed by Luis Muñoz Marín of the Liberal Party. (Tydings had co-sponsored the TydingsMcDuffie Act, which provided independence to the Philippines after a 10-year transition under a limited autonomy.) All the Puerto Rican parties supported the bill, but Muñoz Marín opposed it. Tydings did not gain passage of the bill.
In 1937, Albizu Campos' party organized a protest, in which numerous people were killed by police in Ponce. The Insular Police, resembling the National Guard, opened fire upon unarmed and defenseless cadets and bystanders alike. The attack on unarmed protesters was reported by the U.S. Congressman Vito Marcantonio and confirmed by the report of the Hays Commission, which investigated the events. The commission was led by Arthur Garfield Hays, counsel to the American Civil Liberties Union.
Nineteen persons were killed and over 200 were badly wounded, many in their backs while running away. The Hays Commission declared it a massacre and police mob action, and it has since been known as the Ponce Massacre. In the aftermath, on April 2, 1943, Tydings introduced a bill in Congress calling for independence for Puerto Rico. This bill ultimately was defeated.
During the latter years of the RooseveltTruman administrations, the internal governance was changed in a compromise reached with Luis Muñoz Marín and other Puerto Rican leaders. In 1946, President Truman appointed the first Puerto Rican-born governor, Jesús T. Piñero.
Since 2007, the Puerto Rico State Department has developed a protocol to issue certificates of Puerto Rican citizenship to Puerto Ricans. In order to be eligible, applicants must have been born in Puerto Rico; born outside of Puerto Rico to a Puerto Rican-born parent; or be an American citizen with at least one year residence in Puerto Rico. The citizenship is internationally recognized by Spain, which considers Puerto Rico to be an Ibero-American nation. Therefore, Puerto Rican citizens have the ability to apply for Spanish citizenship after only two years residency in Spain (instead of the standard 10 years).
Commonwealth
In 1947, the U.S. granted Puerto Ricans the right to democratically elect their own governor. In 1948, Luis Muñoz Marín became the first popularly elected governor of Puerto Rico.
A bill was introduced before the Puerto Rican Senate which would restrain the rights of the independence and nationalist movements in the island. The Senate at the time was controlled by the PPD, and was presided over by Luis Muñoz Marín. The bill, also known as the Gag Law (Ley de la Mordaza in Spanish), was approved by the legislature on May 21, 1948. It made it illegal to display a Puerto Rican flag, to sing a patriotic tune, to talk of independence, or to fight for the liberation of the island.
The bill, which resembled the Smith Act passed in the United States, was signed and made into law on June 10, 1948, by the U.S. appointed governor of Puerto Rico, Jesús T. Piñero, and became known as "Law 53" (Ley 53 in Spanish).
In accordance with this law, it would be a crime to print, publish, sell, exhibit, organize or help anyone organize any society, group or assembly of people whose intentions are to paralyze or destroy the insular government. Anyone accused and found guilty of disobeying the law could be sentenced to ten years of prison, be fined $10,000 dollars (US), or both. According to Dr. Leopoldo Figueroa, a member of the Puerto Rico House of Representatives, the law was repressive, and was in violation of the First Amendment of the US Constitution, which guarantees Freedom of Speech. He asserted that the law as such was a violation of the civil rights of the people of Puerto Rico. The infamous law was repealed in 1957.
In 1950, the U.S. Congress approved Public Law 600 (P.L. 81-600), which allowed for a democratic referendum in Puerto Rico to determine whether Puerto Ricans desired to draft their own local constitution. This Act was meant to be adopted in the "nature of a compact". It required congressional approval of the Puerto Rico Constitution before it could go into effect, and repealed certain sections of the Organic Act of 1917. The sections of this statute left in force were entitled the Puerto Rican Federal Relations Act. U.S. Secretary of the Interior Oscar L. Chapman, under whose Department resided responsibility of Puerto Rican affairs, clarified the new commonwealth status in this manner:
On October 30, 1950, Pedro Albizu Campos and other nationalists led a 3-day revolt against the United States in various cities and towns of Puerto Rico, in what is known as the Puerto Rican Nationalist Party Revolts of the 1950s. The most notable occurred in Jayuya and Utuado. In the Jayuya revolt, known as the Jayuya Uprising, the Puerto Rican governor declared martial law, and attacked Jayuya with infantry, artillery and bombers under control of the Puerto Rican commander. The Utuado Uprising culminated in what is known as the Utuado massacre.
On November 1, 1950, Puerto Rican nationalists from New York City, Griselio Torresola and Oscar Collazo, attempted to assassinate President Harry S Truman at his temporary residence of Blair House. Torresola was killed during the attack, but Collazo was wounded and captured. He was convicted of murder and sentenced to death, but President Truman commuted his sentence to life. After Collazo served 29 years in a federal prison, President Jimmy Carter commuted his sentence to times served and he was released in 1979.
Don Pedro Albizu Campos served many years in a federal prison in Atlanta, for seditious conspiracy to overthrow the U.S. government in Puerto Rico.
The Constitution of Puerto Rico was approved by a Constitutional Convention on February 6, 1952, and 82% of the voters in a March referendum. It was modified and ratified by the U.S. Congress, approved by President Truman on July 3 of that year, and proclaimed by Gov. Muñoz Marín on July 25, 1952. This was the anniversary of the July 25, 1898, landing of U.S. troops in the Puerto Rican Campaign of the SpanishAmerican War, until then imposed as an annual Puerto Rico holiday.
Puerto Rico adopted the name of Estado Libre Asociado de Puerto Rico (literally "Associated Free State of Puerto Rico" , officially translated into English as Commonwealth, for its body politic. "The United States Congress legislates over many fundamental aspects of Puerto Rican life, including citizenship, the currency, the postal service, foreign affairs, military defense, communications, labor relations, the environment, commerce, finance, health and welfare, and many others."
During the 1950s, Puerto Rico experienced rapid industrialization, due in large part to Operación Manos a la Obra ("Operation Bootstrap" , an offshoot of FDR's New Deal. It was intended to transform Puerto Rico's economy from agriculture-based to manufacturing-based to provide more jobs. Puerto Rico has become a major tourist destination, as well as a global center for pharmaceutical manufacturing.
Four plebiscites have been held since the late 20th century to resolve the political status. The most recent, in 2012 showed a majority (54% of the voters) in favor of a change in status, with full statehood the preferred option but it was highly controversial: many ballots were left blank and the results were criticized by several parties. Support for the pro-statehood party, Partido Nuevo Progresista (PNP), and the pro-commonwealth party, Partido Popular Democrático (PPD), remains about equal. The only registered pro-independence party, the Puerto Rican Independence Party (PIP), usually receives 35% of the electoral votes.
Demeter
(85,373 posts)I'M TRYING TO IMAGINE RICHARD (NIXON) BURIED IN A PARKING LOT IN DOWNTOWN LA....
OR HENRY (KISSINGER)....TOO BAD HE ISN'T DEAD YET
http://www.theguardian.com/uk-news/2015/may/22/king-henry-i-lies-under-reading-car-park-uk-archaeologists
After the 2015 reburial of King Richard III, experts are suggesting the remains of William the Conquerors son, who died in 1135, lie in Reading...The remains of another English king could be lurking underneath a 21st-century car park, archaeologists and historians have said. After the well-publicised exhumation in 2012 of Richard III from beneath a council lot in Leicester, attention has shifted to the possibility that Henry I, the youngest son of William the Conqueror, could be lying in similar circumstances in Reading.
Henry I ruled England for 35 years between 1100 and 1135 and is remembered by historians as an energetic, decisive and occasionally cruel ruler who allegedly died after eating too many lampreys a kind of jawless fish. He was interred in a sarcophagus in Reading abbey, which was largely destroyed during the 16th-century dissolution of the monasteries.
Now a team that includes Philippa Langley, who led the search for Richard IIIs remains, and Reading-based husband and wife historians John and Lindsay Mullaney, are spearheading a project to uncover the full extent of the abbey using radar to find out where Henry Is remains might be possibly under a playground or a car park. The project has won the support of Historic England, the public body, which has agreed to lend conservation expertise and help with cutting-edge geophysical research. Work starts in 2016...
If remains were dug up, identification could be tough, said Dr Turi King, lecturer in genetics and archaeology at the University of Leicester, who carried out the DNA testing on Richard III. She said the Henry I team would face a tougher challenge verifying his remains, mainly because they will have to trace his ancestry back a further 350 years before Richard III, to 1135 rather than 1485. We were quite lucky with Richard because of the genealogical evidence, but the further back you go the less reliable it becomes, she said.
They knew accurately how old Richard III was when he died, so they were able to check the age of his skeleton matched the age they knew about, whereas histories of Henry I are ambiguous about his date of birth, suggesting 1068 or 1069.
kickysnana
(3,908 posts)Requesting original copy of Auntie's $1000 1969 paid up term life insurance policy which they have known about since 2006. The ONLY thing that changed this year is her rent went up $10. She gets SSI and has no other income.
Insane.
Demeter
(85,373 posts)... Social security is now requiring all beneficiaries to set up direct deposit, which means the resulted funds could become available to executing creditors if there are any funds from any other source in the account as well. You might recall my blog about this some time back, which contains cites to some of the relevant law...As my previous blog explains, Federal law provides that Social Security payments are exempt from garnishment from civil creditors. If, for example, a credit card lender sues you and obtains a judgment, that creditor cannot ask Social Security to withhold funds from your government check. While these protections do not apply with equal force to the IRS collecting a tax debt or a creditor collecting child support, all other creditors are not to touch social security funds under any circumstances.
There is however, a rub. Under the applicable law, Social Security money (SSA) that is co-mingled with non-Social Security money may lose this special protection. Here is what Jonathan Ginsberg says recipients should do:
"Social Security recipients can protect themselves by asking their bank to create a sub-account that holds only SSA issued funds. No money other than SSA funds should ever be deposited into this account. This is especially necessary if the recipient has civil judgment creditors looking for a source of funds to levy against.
In my practice, I have represented a number of senior citizen clients who are living with tens of thousands of dollars in credit card debt, have no assets or equity in property, and who survive on Social Security only. In these cases I often discourage bankruptcy and instead write each creditor advising the creditor that my client is judgment proof with no source of funds that can be garnished. At the same time I write the credit card company, I also draft a letter to my clients bank, putting the bank on notice that it should not honor any garnishment because the sole source of funds is Social Security money. Often, however, I find that my clients are using their Social Security account as a regular bank account and they deposit other money, such as funds generated from a garage sale or a gift from a relative. I spend a lot of time explaining to my client that even a few dollars of co-mingled money may jeopardize the protected status of their Social Security bank account.
Now that many more Social Security recipients are entering the electronic banking world, I expect that more than a few will find themselves trying to get money back from a judgment creditor who found a co-mingled account. Sometimes, senior citizens choose to file bankruptcy for the peace of mind benefit, but often a Chapter 7 or Chapter 13 filing is not necessary instead many creditors and collection agencies will write off your debt and close their files if you can show that you are judgment proof. If you are receiving Social Security money, I urge you to take time now before a judgment creditor begins collection efforts to protect your bank accounts."
Demeter
(85,373 posts)In his forthcoming book, Detroit: A Biography, journalist Scott Martelle details how the city felled by one of the great innovations of the industrial era, a grave lack of official foresight and swirling poverty and prejudice has come to redefine urban collapse. Martelle starts his story at the beginning, with French naval officer Antoine Laumet de Cadillac beaching his canoe on the north bank of the Detroit River in July 1701 and establishing Fort Pontchartrain.
Economic boom-times arrived with the 1825 opening of the Erie Canal, a key shipping link to the East through which boatloads of iron ore, copper, coal, and lumber from the Lake Superior region passed.
Detroit's population neared 300,000 at the turn of the century, just as Ransom Olds, David Buick, the Packard brothers and Henry Ford began their battle for automobile supremacy. By 1914, Detroit was making half the country's cars. By 1929 it was the fourth largest city in the country, with a thriving economy, a population of 1.6 million (nearly 160,000 working in the auto industry) and impressive new roads and skyscrapers.
Yet it was built on sand. Martelle points to Henry Ford's great innovation, the conveyor belt-driven assembly line. It was the first critical step in the dehumanization of manufacturing work, he writes. Skilled craftsmen lost out to unskilled laborers who performed a single task, day in and day out. The line became standard across the industry and wages fell, leading to protests and ultimately the creation of the United Auto Workers union. Yet by providing decent-paying jobs to the least skilled, the assembly line dictated that future Detroit workers would rarely need more than a high school education or any skills that might help them find work beyond the most menial jobs. It drew to Detroit the relatively uneducated, made Detroit a magnet for the lower economic strata, from the South and other parts of Midwest, says Martelle. Obviously you need laborers, but this skewed the balance. And in a free market those jobs would constantly seek out the cheapest labor. General Motors sniffed the changing winds long before most, opening factories as far afield as Europe, South America and, in 1929, that godhead of outsourcing, India.
The Great Depression hit Detroit hard. Auto production fell by three-quarters in just three years, forcing tens of thousands of layoffs and countless foreclosures. Major banks faced insolvency. By 1940 the industry had rebounded, converting plants to build tanks, planes and various other vehicles and spare parts for the war effort. Detroit's economy hummed again, and half a million people arrived looking for work, mostly African-Americans from the South. After the war, the big automakers went back to their old ways. Cars sold in record numbers, driving a booming local and regional economy. Depression-era troubles had failed to convince Detroit officials to diversify.
It was a lack of imagination, says Martelle. The leaders saw people buying cars again, and thought, making cars, that's what this city does best. That decision, Martelle argues, played a major role in the city's eventual collapse.
It's hard to imagine Detroit would be in its current condition if the post-war economy had diversified significantly beyond auto-making, he writes in the book.
Later opportunities to point the city in a better direction came and went. Martelle chronicles the 1949 election of Mayor Albert Cobo, whose anti-integration, slum-clearing policies helped spur the exodus of whites to the suburbs, the devastation of the 1967 riots and the years of crime, drugs, and gang violence that followed.
Along the same timeline, the Big Three were busy decentralizing their operations. By the early 70s, one out of every three dollars invested in the major automakers was heading overseas.
The 1973 oil embargo, the subsequent race to increase fuel efficiency and the rise of Japanese automakers like Honda proved the straw that broke the city's back. Within two years, U.S. auto production had fallen nearly 30 percent, and Detroit was well on its way to becoming a byword for urban decay.
Martelle intersperses his narrative with a handful of telling resident bios. Michael Farrell buys the century-old, long-neglected Taylor House mansion in Brush Park for $65,000 in 1981. He hopes to revive the neighborhood and achieves modest success until the financial crisis steals his momentum. With no grocery store or retail of any sort, today the area is known mainly for its Victorian ruins porn.
When you lose the commerce, you lose the city, Farrell tells Martelle in the book. Detroit has no commerce.
Demeter
(85,373 posts)Agencies can let out a deep breath of relief for a second year in a row there will be no budget cuts because of sequestration in fiscal 2015. The Office of Management and Budget sent a letter and report to Congress Jan. 20, detailing why the reductions to agency discretionary budgets will not be necessary as called for under the Budget Control Act.
"OMB estimates that discretionary appropriations are at the defense cap, while non-Defense appropriations are nearly $3.7 billion below the budget authorizations set in the [Budget Control Act]," OMB wrote in the report. OMB stated the defense discretionary budget for 2015 is $585.9 billion, down from $606.3 billion last year. For non-defense discretionary spending, agencies will have $514.1 billion, which is up from $504.8 billion in 2014.
The Bipartisan Budget Act of 2013 called for smaller reductions in the spending caps in 2015 than previously expected. The law reduced the defense cap only by $44.7 billion and the non-defense cap only by $27.6 billion from the original Budget Control Act levels. In 2014, Congress restored $44.8 billion in total to the government's discretionary spending. The administration estimates the discretionary spending to increase in the out years for non-defense spending, and continue the defense budget's decline in 2016, but slowly increase through 2021. This is the second straight year that Congress and the White House approved a budget that will not require additional cuts. In 2014, discretionary budget allocations stayed under the Budget Control Act caps. In 2013, agencies faced an $85 billion budget cut under sequestration, which amounted to a 7.8 percent reduction to defense agencies and a 5 percent decrease to civilian agencies.
Sequestration could return starting in 2016, OMB said, as the Budget Control Act requires reductions to the current discretionary spending rates. OMB told Congress in its August sequestration report that it was concerned about a limited sequester in 2015, but in the end it wasn't needed.
SO THAT IDIOTIC RULE IS STILL IN EFFECT, AND WE ARE ON A STARVATION DIET TO AVOID IT KICKING IN
Demeter
(85,373 posts)It's maddening, and confusing the plant and animal life.
DemReadingDU
(16,000 posts)Just yesterday, I planted a few tomato plants. The temps have dipped into the 40s this week, but so far, no frost.
Demeter
(85,373 posts)On average, a new car buyer in the U.S. keeps the car for more than 11 years. It is rare for a buyer to turn around and sell that new car after just one year. Only about 2.7% of new cars sold in model year 2014 were sold after just one year of ownership. Even with that low turnover percentage, there were seven 2014 models that got dumped at even higher rates after just one year. Automotive research website iSeeCars.com analyzed 5 million new 2014 model year cars sold between September 2013 and March 2014, and then checked back one year later to see what percentage of those cars were sold as used with 10,000 to 15,000 miles on the odometer.
From 24/7 Wall St., here are the seven cars that owners could not wait to get out of:
- Nissan Frontier:A total of 6.9% of the midsize pickup trucks were resold by their original buyers after just one year of ownership. That is 2.6 times the average rate of 2.7%. At the Kelley Blue Book (KBB) website, the 2014 king cab version of the Nissan Frontier has 156 consumer reviews and an overall rating of 8.6 out of a possible 10. The Frontiers MSRP is $23,435.
- Chevrolet Cruze: Some 7.2% of Chevy Cruze buyers dump the car after just a year of ownership. That is 2.7 times the average rate. The compact sedan was named to KBBs 2014 list of 10 best sedans costing less than $25,000, and it has received 472 ratings at KBB and an overall rating of 8.4. The Cruze carries an MSRP of $18,345.
- Mercedes-Benz C-Class: This may be a bit of a shocker: 7.4% of the 2014 C-Class cars were resold after just one year. That is 2.8 times average rate of 2.7%. A car with an MSRP of more than $36,000 that has 287 consumer ratings and an overall score of 9.2 is one that buyers cannot wait to sell? KBBs experts rate the C-Class at an overall 7.3, so there might be a disconnect here.
- Dodge Charger: KBBs experts rated the Dodge Charger at an overall 7 out of 10, and 7.7% of owners sold the car after just one year of ownership. That is 2.8 times the average rate. The car has 117 ratings at KBBs website and an overall rating of 9.2. The MSRP on the car is $27,900.
- BMW X1: This BMW X1 crossover SUV carries an MSRP of $31,850 and an overall rating of 7.6 from KBBs experts. A full 7.8% of owners sold the car after just a year of ownership, which is 2.9 times the average rate of 2.7%. Consumers have posted 47 ratings for the vehicle on the KBB website, and the overall rating is 8.7.
- Chevrolet Sonic: The second GM-built car to make this list had 8.9% of owners sell after just one year, a rate three times the average. The KBB experts rate the car at 7.7, and consumers give it an 8.5 rating, based on 135 total reviews. The MSRP on the car is $14,995.
- Buick Regal: The third GM-made car that owners cannot wait to sell gets resold within one year at a rate of 10.7%, four times the average of 2.7%. The midsize Regal gets a rating of 7.1 from the KBB experts, and 86 consumer ratings yield an overall score of 8.9. The MSRP on the car is $30,615.
iSeeCars notes that all seven cars were ranked as average (three stars) or worse in the J.D. Power 2014 U.S. Initial Quality Study, which surveys consumers after 90 days of ownership. The companys CEO, Phong Ly, suggests that the presence of the BMW X1 and Mercedes-Benz C-Class vehicles on this list could indicate that the technology does not work as promised or is difficult to use (more likely the latter). The Buick Regal competes with both Lexus and BMW models and may be found wanting in the luxury details that buyers expected. The good news is that consumers looking for one of these cars can often find a bargain. For example, a 2014 Buick Regal with 10,000 to 15,000 miles is currently valued at 32.2% less than its new car price (based on iSeeCars.coms database of cars for sale). 2014 models of the Dodge Charger and the Mercedes-Benz C-Class with average miles averaged 31% and 28.4% less than their new prices, respectively. Minimum savings for buyers on six of these seven cars is nearly 18%, according to Ly.
I WONDER IF FINANCING MIGHT HAVE SOMETHING TO DO WITH THE TURNOVER, TOO...
http://247wallst.com/autos/2015/05/15/7-cars-buyers-cannot-wait-to-trade-in/
Demeter
(85,373 posts)As of this week, Citicorp, JPMorgan Chase, Barclays and Royal Bank of Scotland are felons, having pleaded guilty on Wednesday to criminal charges of conspiring to rig the value of the worlds currencies. According to the Justice Department, the lengthy and lucrative conspiracy enabled the banks to pad their profits without regard to fairness, the law or the public good. Besides the criminal label, however, nothing much has changed for the banks. And that means nothing much has changed for the public. There is no meaningful accountability in the plea deals and, by extension, no meaningful deterrence from future wrongdoing. In a memo to employees this week, the chief executive of Citi, Michael Corbat, called the criminal behavior an embarrassment not the word most people would use to describe a felony but an apt one in light of the fact that the plea deals are essentially a spanking, nothing more.
As a rule, a felony plea carries more painful consequences. For example, a publicly traded company that is guilty of a crime is supposed to lose privileges granted by the Securities and Exchange Commission to quickly raise and trade money in the capital markets. But in this instance, the plea deals were not completed until the S.E.C. gave official assurance that the banks could keep operating the same as always, despite their criminal misconduct. (One S.E.C. commissioner, Kara Stein, issued a scathing dissent from the agencys decision to excuse the banks.) Also, a guilty plea is usually a prelude to further action, not the resolution of a case, as the Justice Department has called the plea deals with the banks.
To properly determine accountability for criminal conspiracy in the currency cases, prosecutors should now investigate low-level employees in the crime traders, say and then use information gleaned from them to push the investigation up as far as the evidence leads. No one has thus far been named or charged. Nor has there been any explanation of how such lengthy and lucrative criminal conduct could have gone unsuspected and undetected by supervisors, managers and executives. The plea deals leave open the possibility of further investigation, but the prosecutors light touch with the banks makes it doubtful they will follow through.
An argument has been made that the S.E.C. was right not to revoke the banks capital-market privileges because doing so might disrupt the economy. That is debatable. What is not debatable is that bringing criminal charges against individuals and even sending some of them to jail would not disrupt the economy. To the contrary, holding individuals accountable is all the more important in instances of wrongdoing by banks that, for whatever reason, have been exempted from the full legal consequences of their criminal behavior. The plea deals mimic previous civil settlements. In all, the banks will pay fines totaling about $9 billion, assessed by the Justice Department as well as state, federal and foreign regulators. That seems like a sweet deal for a scam that lasted for at least five years, from the end of 2007 to the beginning of 2013, during which the banks revenue from foreign exchange was some $85 billion. The banks will also be placed on corporate probation for three years, which will be overseen by the court and require regular reporting to the authorities as well as the cessation of all criminal activity. And the banks are also required to notify customers and counterparties that may have been directly affected by the banks manipulation of the currency markets. The Justice Department intended the criminal pleas to look tough. Instead, they reflect at bottom the same prosecutorial indulgence that has plagued the pursuit of the banks in the many financial scandals of recent years.
Demeter
(85,373 posts)AMAZING DIATRIBE AGAINST MERKEL AND CO....FROM MARCH, 2013
http://www.spiegel.de/international/europe/opinion-german-euro-leadership-stubborn-and-egotistical-a-890848.html
Throughout Cyprus's financial crisis, German power has been on display. But Germany is pursuing the wrong ojectives, showing how it's incapable of wielding its power correctly...What is the chancellor's word actually worth? Cyprus has shown once again that Europe can't rely on the Germans....
But the theatrics of the past week fit well into the image Europe is projecting right now: Irresponsible bankers gamble away the money of even richer money-launderers, and the politicians help both groups to save themselves as best they can -- at the expense of the common people, who have neither the resources nor the influence to bring themselves to safety. And all of that takes place under German domination.
That was a sign. The chancellor indulges herself and the Germans in the luxury of navel-gazing. Historical memory is essentially wiped away, good for little more than cozy evenings when we wrap ourselves in blankets and ogle at the moral failures depicted in World War II TV dramas, like the recent German miniseries "Our Mothers, Our Fathers."
But this means nothing for the present. Just like twice before in our recent history, the Germans are falling deeper and deeper into conflict with their neighbors -- regardless of the cost. It's a path that could easily lead to fear of German political hegemony on the Continent. Indeed, Merkel's idea of European integration is simply that Europe should bend to Germany's political will.
MORE GOODNESS AT LINK
antigop
(12,778 posts)Demeter
(85,373 posts)Demeter
(85,373 posts)http://wolfstreet.com/2013/03/24/cyprus-crisis-a-triumph-for-russian-isolationists/
The mainstream media usually presents a very unbalanced view on the events in which Russian interests are involved. The Cypriot bailout is no exception. These messages are wrong, and they miss the most interesting part of the story. I can tell that in Moscow there are many people who are jubilating right now. Their wildest dreams have come true. Russia should be grateful to the European Union and we should send them a gift or something, wrote one of the pro-Kremlin journalists on Sunday.
The Russian ruling elite is not monolithic. There are at least two different camps, vying for power and control over the state ideology.
One such group believes that Russia can become integrated in the Western world and can be someday accepted by West as an equal partner. Contrary to the popular belief, this group is quite influential, and a big number of oligarchs support its views and political actions. From the beginning of this year, this group has been running out of luck and now it is risking running out of money...The other group believes in Russias self-sufficiency and would like to see the demise of the worlds dollar-based monetary system. Members of this group dont trust the West. It is easy to see that this group is celebrating right now. Their opponents have received a near-mortal blow.
The official position of Vladimir Putin has always been anti-offshore. Not many Western journalists are willing to tell their readers about the following quote from 2002:
In 2011, Putin repeated the warning, while addressing the participants of business forum:
Most of the oligarchs did not listen. Some members of the political elite din not listen. Somehow, they all believed that only the Soviet State had the privilege of expropriating private property. In late 2012 and 2013, Kremlin seemed to have given up on convincing the wealthy Russians to come onshore and started a program of political and legal arm-twisting. The members of the parliament and the top-ranking state officials are now legally barred from owning shares in foreign companies and from owning bank accounts or financial instruments outside of Russia. Earlier this year (2013), in his State of the Federation speech, Putin declared that the process of de-offshorization will become a top priority. Many experts interpreted this as a warning addressed to the oligarchs and politicians. Now, all the Russians who have money deposited in offshore accounts have a good reason to bring their funds back to Russia. If Cyprus is not safe, then the whole Europe is not safe, then the West is not safe.
The only advantage the West had over Russia was the illusion of the sanctity of private property rights. Now, this illusion is gone forever....
AND EVENTS SINCE 2013 HAVE ONLY REINFORCED THIS PUSH FOR AUTARCHY....THE DEMONIZATION OF PUTIN, RUSSIA, AND THE COUP AND WAR IN UKRAINE HAVE MADE THE CASE SEVERAL TIMES OVER.
Demeter
(85,373 posts)Many highly-respected Washington types have been running around for the last three years yelling that because of its large budget deficits, the United States is Greece. Then we learned last week that the immediate danger is the United States being Cyprus.
As we now know, Cyprus is a small island country with a financial sector that has run amok, following in the footsteps of Ireland and Iceland. The assets of its banks were eight times the size of the country's economy.
This meant that when the banks' big bets went bad, there was no way Cyprus' government could afford the price of the bailout. As a result, Cyprus was forced to go hat in hand to the European Central Bank and accept whatever offer was put on the table. However the Cyprus crisis is finally resolved, it is not likely to be a pretty picture for the citizens of Cyprus.
As the Cyprus crisis was unfolding last week, we also got to see the report of the Senate Permanent Subcommittee on Investigations (pdf) on JP Morgan's losses at its "London Whale" trading division. The report chronicles a series of bad bets on derivatives that were compounded by traders doubling down their stakes. They concealed the size of their losses both to bank officers and regulators. The end result was a $6bn loss.
JP Morgan is a huge bank and can swallow $6bn in losses, but the incident showed as clearly as possible that the Dodd-Frank reforms are not working. The London Whale's losing trades were all done in the Dodd-Frank era. The bill's provisions did not prevent JP Morgan from making massive bets and misleading regulators about their nature and the risks involved.
If the regulators were not able to catch the London Whale's huge gambles before they went bad, why would we think that they will catch the next crapshoot from the Wall Street gang? It's time that we looked at this seriously: the regulators lack either the will or the competence to rein in the big banks. The big banks are going to get away with everything they want, regardless of the provisions of Dodd-Frank.
If the big banks are too big to regulate and, according to Attorney General Holder, too big to prosecute, then the only sensible course is to break them up. There have been some promising developments in this area.
At the top of the list is Elizabeth Warren's election to the senate. Senator Warren has already made it clear that she will use her seat on the Senate banking committee to try to hold the banks and bank regulators accountable. The other important development is that Warren seems to have an ally in Louisiana Senator David Vitter....
ALSO FROM MARCH, 2013
DemReadingDU
(16,000 posts)that nothing has changed, except that the world is in much bigger shiiiiit
Demeter
(85,373 posts)A high-flying Morgan Stanley investment adviser, Ami Forte, has the bank facing an enormous fine, a source says. The fine would be the result of a lawsuit filed against the bank by the widow of a multimillionaire client. The widow is Lynnda Speer, who was married to Roy Speer, cofounder of the Home Shopping Network. He died in 2012. Now Lynnda Speer says the bank overcharged her husband while he was alive.
To complicate matters, there is this: Roy Speer and Forte were having an affair. It started in 1998. Details of the affair came out in a Financial Industry Regulatory Authority (FINRA) hearing taking place in Florida this month. A source present at the FINRA hearing says Morgan Stanley could be on the hook for a $400 million loss: $100 million in compensatory damages, and an additional $300 million in punitive damages. According to an earlier report, Morgan Stanley believed it might be on the hook for a lot less only $170 million.
The reason the fine may end being bigger than expected is because of a state statute in Florida, the Florida Elder Exploitation Law. The law allows for punitive damages for exploitation of the elderly. Toward the end of his life, Speer suffered from declining mental and physical health, requiring him to delegate oversight over financial matters to others, including Forte.
"During the last several years of his life, Roy Speer suffered from significant diminished mental capacity, as well as from substantial physical infirmities, said a representative from Johnson Pope Bokor Ruppel & Burns LLP, lawyers for Lynnda Speer. "He was wheelchair bound and diapered, could not drive, and was attended to daily by a full-time caregiver.
Lynnda Speers lawyers say that from March 2007 until after Speers death in 2012, Morgan Stanley, through Forte, allegedly put through approximately 12,000 unauthorized trades in Mr. Speers accounts, generating commissions of nearly $40 million, according to the law firms statement, which was provided to Business Insider. Lynnda Speers lawyers declined to make her available for comment.
We believe the claims are without merit and we are contesting them vigorously through the legal process, a Morgan Stanley representative said in a statement.
Ami Forte oversaw between $155 million and $185 million of Roy Speers money and assets while he was alive, says a source who attended the FINRA hearing, which is yet to conclude. Business Insider sought Forte for comment, and she did not respond. At Morgan Stanley, according to her bio, Ami is one of the few female members of Morgan Stanleys Chairmans Club, qualifying consistently since 2001. Morgan Stanleys Chairmans Club is reserved for its top wealth-management advisers. Forte also made the grade in investment publication Barrons, which named her among its top-100 financial advisers several times. She racked up other accomplishments as well.
A source says that while Lynnda Speer was aware of her husbands dalliances, she neither approved nor was willing to divorce him. According to a source present in the hearing, it was acknowledged that Forte had a unique relationship with Mr. Speer. The source added: "It was well known in the community that they were having an affair.
DemReadingDU
(16,000 posts)MattSh
(3,714 posts)Paul Krugman has a nice column entitled Fraternity of Failure dated May 15, 2015.
In Bushworld, in other words, playing a central role in catastrophic policy failure doesnt disqualify you from future influence. If anything, a record of being disastrously wrong on national security issues seems to be a required credential.
But refusal to learn from experience, combined with a version of political correctness in which youre only acceptable if you have been wrong about crucial issues, is pervasive in the modern Republican Party.
Krugman moves from foreign policy to economic policy and sees the same fraternity of failure among Republican economists.
Take my usual focus, economic policy. If you look at the list of economists who appear to have significant influence on Republican leaders, including the likely presidential candidates, you find that nearly all of them agreed, back during the Bush boom, that there was no housing bubble and the American economic future was bright; that nearly all of them predicted that the Federal Reserves efforts to fight the economic crisis that developed when that nonexistent bubble popped would lead to severe inflation; and that nearly all of them predicted that Obamacare, which went fully into effect in 2014, would be a huge job-killer.
Given how badly these predictions turned out we had the biggest housing bust in history, inflation paranoia has been wrong for six years and counting, and 2014 delivered the best job growth since 1999 you might think that there would be some room in the G.O.P. for economists who didnt get everything wrong. But there isnt. Having been completely wrong about the economy, like having been completely wrong about Iraq, seems to be a required credential.
Complete story at - http://www.nakedcapitalism.com/2015/05/bill-black-krugman-is-half-right.html
MattSh
(3,714 posts)Even though Greece has looked to be on the verge running out of cash since late March, the government has managed to extend its own sell-by date by deferring payments to government suppliers, finding and emptying every pocket of funds it could fund, and most recently, using a special drawing rights account to pay the IMF. This is tantamount to the sort of behavior that Yanis Varoufakis decried early in the negotiations, of the creditors extend and pretend behavior being tantamount to using ones credit card to pay the mortgage.
But it increasingly looks like a default is nigh. Varoufakis, who in the past has been reassuring or at least non-commital about Greeces financial condition, said the government had only about two weeks of funding left as of the IMF payment finesse last week. The IMF was less precise as to timing, but a leaked bureaucratically measured memo dated May 14 stated the obvious: that there is no way Greece can meet its obligations coming due between June and August unless they come to a deal with the creditors.
Even as Greece is becoming visibly more desperate, so far, its partners are not acting as if they are alarmed by the prospect of default, as in scrambling to find ways to finesse Syrizas red line or extend the negotiation timetable. Ekathimerini stated on Sunday that Alex Tsipras sent a letter to IMF managing director Christine Lagarde on May 8 stating that Greece would not be able to make its May 12 IMF payment, and also sent the letter to the EUs Jean-Claude Juncker and the Mario Draghi of the ECb. Tsipras also reportedly called US Treasury Secretary Jack Lew with the same information. Yet the threat of an imminent default did not lead to a breakthrough (as in a concession) from the creditors in the technical-leval talks over the weekend, to the Eurogroup relenting on its existing plan to make no decision (as in not authorize) regardling a release of funds at its May 11 meeting. or to the ECB letting up on its government funding choke chain. As the Telegraph pointed out:
The Greek premier also appealed to the ECB to allow his cash-starved government to issue short-term government debt and requested the return of 1.9bn in profits held by the ECB from holding Greek bonds.
Following Syrizas election, the ECB has banned Greek banks from increasing their holdings of T-bills, placing a further squeeze on the government which is scrambling to find the cash to make its public sector obligations every two weeks.
Mr Draghi and his governing council failed to lift the prohibition at a meeting last week, but did provide an additional 1.1bn in emergency liqudity to the countrys banks.
Complete story at - http://www.nakedcapitalism.com/2015/05/greece-cornered-as-imf-and-ecb-refuse-to-relent.html
MattSh
(3,714 posts)Anyone puzzled by Scotlands increasing disaffection should take a look at a book called British Enterprise. Written by Alexander Howard and Ernest Newman, and published in 1952, the immediate afterglow of the festival of Britain, it consisted of short descriptions of each of more than 100 then world-beating British manufacturing companies.
It strikingly illustrates how much more geographically balanced the British economy was in those days. In common with latter day Germany, every region of 1950s Britain had plenty of industrial prowess to boast of.
The Midlands had the British car industry, the worlds second-largest by total output and No 1 in exports. Wales had toys, steel, and domestic appliances; Nottingham had bicycles; Newcastle and Belfast led the world in key areas of heavy engineering; and, of course, Lancashire had cotton.
Then there was Scotland. Its roll call of exporting titans included Renfrew -based Babcock and Wilcox, which made boilers for the worlds power stations. Other major Scottish exporters included North British Locomotive and the William Beardmore castings company. In Dundee there was National Cash Registers major British subsidiary and in Kirkcaldy the Nairn linoleum company.
The list went on and on, and at the top was the John Brown company. Although then one of the worlds most technically advanced manufacturers, John Brown is largely forgotten today. Its products, however, are not. They included the Lusitania, HMS Repulse, the Queen Mary, the Queen Elizabeth, the QE2 and others. John Brown was the cornerstone of a Clydebank shipbuilding industry that built nearly a third of the worlds ships.
Complete story at - http://www.theguardian.com/business/economics-blog/2015/may/18/as-the-uk-has-discovered-there-is-no-postindustrial-promised-land
MattSh
(3,714 posts)Will this Greek stuff ever stop? Probably, but dont hold your breath. I was reading up on China, but that will have to wait till tomorrow. A friend just sent me a Sputnik story -theyre a Russian news channel, so they cant be trusted, right?!- that adds more juice to the Syriza vs troika tale. And whaddaya know, the king of Greece leaks, Paul Mason at Channel 4, is involved once again.
Lets do Mason first. Hes in Athens and, wait for it, he scored another leak. But not a direct leak to Mason; this one concerns a European Commission document leaked to Greek newspaper To Vima. There are some useful numbers here. Mason:
Greece: Europes Last-Ditch Effort To Keep It In Euro?
According to To Vima, the EU commission boss (Juncker, ed.) has offered Greece a deal that delays the harshest austerity for two years, and releases 5bn of bailout money to help fill the gaps in the Greek budget. To get the money Greece has to:
Run a primary surplus of 0.75% of GDP much lower than the previous demands from the ECB and IMF. And a surplus of 2% of GDP in 2016.
This rises to 3.5% for both of the next years, but would have to be seen as notional as committing to anything in 2018 barely matters when you are three weeks from default.
Greece has to raise VAT to 18% with 15% for card transactions. This cleverly forces tax evaders into the formal economy by setting a relatively low rate.
I was wondering why I saw two different numbers being reported, but this makes sense. As much as I am suspicious of the war on cash issue as well, we must be aware that using cash to avoid taxes is a huge issue in Greece, and Syriza has do to something about that. Im guessing theres a similar difference for the lower VAT rate, 6.5% vs 9.5%.
Greece gets its way on labour market reform, which will be done using ILO best practice. But it has to keep an unpopular property tax called ENFIA and it has to reduce pension entitlements for public sector workers.
Complete story at - http://www.theautomaticearth.com/2015/05/obama-has-a-big-fat-greek-finger/
MattSh
(3,714 posts)Ponder this one for a while, and I'll post the reason why later.
Demeter
(85,373 posts)Can't they let bygones be bygones?
You couldn't ponder that just a little bit longer to give others some time to ponder?
Demeter
(85,373 posts)Sorry
MattSh
(3,714 posts)I just didn't expect that so quickly.
Actually, that's quite impressive, because I didn't know that until I had spent a good amount of time here in Kiev.
Demeter
(85,373 posts)Music is my religion, and I'm in love with George Clooney's Tomorrowland, which the Kid and I just saw.
I want one of these!
MattSh
(3,714 posts)Fossil fuel companies are benefitting from global subsidies of $5.3tn (£3.4tn) a year, equivalent to $10m a minute every day, according to a startling new estimate by the International Monetary Fund.
The IMF calls the revelation shocking and says the figure is an extremely robust estimate of the true cost of fossil fuels. The $5.3tn subsidy estimated for 2015 is greater than the total health spending of all the worlds governments.
The vast sum is largely due to polluters not paying the costs imposed on governments by the burning of coal, oil and gas. These include the harm caused to local populations by air pollution as well as to people across the globe affected by the floods, droughts and storms being driven by climate change.
Nicholas Stern, an eminent climate economist at the London School of Economics, said: This very important analysis shatters the myth that fossil fuels are cheap by showing just how huge their real costs are. There is no justification for these enormous subsidies for fossil fuels, which distort markets and damages economies, particularly in poorer countries.
Lord Stern said that even the IMFs vast subsidy figure was a significant underestimate: A more complete estimate of the costs due to climate change would show the implicit subsidies for fossil fuels are much bigger even than this report suggests.
Complete story at - http://www.theguardian.com/environment/2015/may/18/fossil-fuel-companies-getting-10m-a-minute-in-subsidies-says-imf
MattSh
(3,714 posts)Ive been doing a lot of thinking recently about the labor market for a longer forthcoming piece, and one of the mysteries Ive been grappling with is: How do you describe how this economy is treating young people?
Lets start by singing the necessary praises. Last year was was the best for job-creation this century. Were in the middle of the longest uninterrupted stretch of private-sector job creation on record. After creating mostly low-paying service jobs for the first few years of the recovery, the labor market is finally churning out more high-skill jobs. All of these things should be great news for young people.
Should.
But a deeper look at the Young-American Economy today suggests that, in contrast to the overall labor market, it is still sort of terrible.
To start with the camera lens zoomed all the way out: The majority of young people arent graduating from a four-year university. Rather they are dropping out of high school, graduating from high school and not going to college, or dropping out of college. Millennial is often used, in the media, as a synonym for bachelor-degree-holding young person, but about 60 percent of this generation doesnt have a bachelors degree.
Complete story at - http://www.theatlantic.com/business/archive/2015/05/the-new-normal-for-young-workers/393560/
MattSh
(3,714 posts)Many people seem to think that America has lost its sense of purpose. They overlook the obvious: that we are striving to become the Bulgaria of the western hemisphere. At least we already have enough vampires to qualify.
You dont have to seek further than the USAs sub-soviet-quality passenger railroad system, which produced the spectacular Philadelphia derailment last week that killed eight people and injured dozens more. Six days later, were still waiting for some explanation as to why the train was going 100 miles-per-hour on a historically dangerous curve within the city limits.
The otherwise excellent David Stockman posted a misguided blog last week that contained all the boilerplate arguments denouncing passenger rail: that its addicted to government subsidies and that a free market would put it out of its misery because Americans prefer to drive and fly from one place to another.
One reason Americans prefer to drive say, from Albany, NY, to Boston is that there is only one train a day, it never leaves on time or arrives on time, and it takes twice as long as a car trip for no reason that makes any sense. Of course, this is exactly the kind of journey ( slightly less than 200 miles) that doesnt make sense to fly, either, given all the dreary business of getting to-and-from the airports, not to mention the expense of a short-hop plane ticket.
I take the popular (and gorgeous!) Hudson River Amtrak train between Albany and New York several times a year because bringing a car into Manhattan is an enormous pain in the ass. This train may have the highest ridership in the country, but its still a Third World experience. The heat or the AC is often out of whack, you cant buy so much as a bottle of water on the train, the windows are gunked-over, and the seats are often broken. They put wifi on trains a couple of years ago but it cuts out every ten minutes.
Complete story at - http://kunstler.com/clusterfuck-nation/dead-nation-walking/
Demeter
(85,373 posts)...Why does the government have to rely on commercially-collected financial industry data sets or voluntary surveys of financial firms to discover the effects of policies the government has put in place? This is just embarrassing. The U.S. government has so little power over the financial industry an industry that only exists by virtue of the full faith and credit, payments systems, FDIC insurance, etc. provided by the U.S. government that it cannot demand data from banks and financial firms, but instead must ask politely for voluntary survey answers or search the data market and pay for information like a commoner?
The CFPB fancies itself a data-driven agency but is subject to budgetary constraints in obtaining that data. Worse, it can only obtain the data the market chooses to provide, which is often a bunch of incomplete data sets that cover performance of only a sample of any particular financial product or that consist of voluntary unverified survey responses of industry members. Even more galling, some of those data purchases come with use restrictions. For example, it appears that the CFPB's recent report on student loans was based on data provided voluntarily by lenders, data which was stripped of identifying information before it was shared with the government not merely to protect individual borrowers but to prevent identification of any particular lender within the data. Other government agencies are often in the same position. The Government Accountability Office, for example, often relies on data in whatever form industry chooses to sell or voluntarily share it (see, e.g., GAOs report to Congress on the potential impacts of Dodd-Franks mortgage provisions, which forecasts the effects of Dodd-Frank's loan structure and underwriting provisions discussed in one of my prior posts by applying them to mortgages originations between 2001 and 2010, relying on loan-level data purchased on the private data market, data that covers only part of the mortgage market and only some of the pertinent loan structure and underwriting details).
I remember back in 2003 when the Office of the Comptroller of the Currency suggested that the subprime mortgage loan market was price competitive and therefore not "predatory." The OCC based this conclusion in part on loan pricing and loss rate data from a single subprime lender. That lender had provided researchers with its claimed loss rate data from 2002 and with the interest rate sheets for 30-year fixed rate loans offered by that lender during a single week in 2002 for two subprime loan programs the lender ran in Colorado and Utah only. There was no evidence that any of this data was representative of subprime lending generally, or even of this particular lender's national portfolio or outside of the single week in which the rates were in effect.
How convenient for industry to be able to feed regulators the data it selects and restrict the use of that data as it sees fit. And if that data turns out less favorable than industry might have expected, it can then argue that any criticism of industry is based on incomplete data.
Each and every time the government issues, changes, or removes a regulation, industry should be required to report back with follow-up data, anonymized to protect individual consumer privacy, about which consumers have been affected by the change and how they have been affected. To the extent that trade secrets can be removed from the data, that data should be made available to the research community as well. No one can ever foresee all consequences of any regulatory change, or all the ways in which potentially affected parties might avoid the intended consequences. Particularly when a host of regulatory changes are made all at once, as in the Dodd-Frank regulations, vigilant monitoring of the effects is necessary to address the inevitable problems that will arise. Data alone will not yield all the answers; value-laden judgments are required because costs and benefits are rarely in commensurate currency. But exchanging data is no longer an expensive and time consuming proposition. Financial firms compile reams of data for their internal purposes, and the additional cost of sharing it with the government is almost certainly negligible. There is no need to deny the government the resources industry has. There is no need to regulate in complete dark when some light is available.
March 24, 2013
GIGO: GARBAGE IN, GARBAGE OUT.
WE DON'T REALLY WANT TO GOVERN, WE JUST WANT TO GO THROUGH THE MOTIONS....
MattSh
(3,714 posts)My Note: From a few different descriptions I've read, Poland was designed specifically as an attraction to draw other former Warsaw Bloc countries to the western side. The west could have either tried to treat all former bloc countries equally, which would have failed because nobody wanted to pay for that, or to use one country, in this case Poland, as an attraction, a sort of a Pola-Disney, which the other nations would have observed in awe and then would decide that they wanted to be a part of that. The fact is that there would only be one Pola-Disney; that was the original and the only plan.
Ukraine - Slipping away from the West
IN A LEADER this week we argue that the West should treat Ukraine like it treated Poland in the early 1990s. Poland has had bucketloads of aid and economic assistance thrown at it since the 1990s, its economy booming as a result. Ukraine, on the other hand, has recieved hardly any at all. Now both its politics and its economy are in a mess.
Here are a few charts that show how the West has got it wrong with Ukraine. Firstly, as we argued in this week's leader:
In the early 1990s Poland wanted a European, not a Russian, future. The West saw its chance. From 1990 to 2000 Poland received a bucket-load of aidmore than any other country, in fact, except Egypt, India and China [see first chart]. There was plenty of debt relief, reducing Polands external-debt-to-GDP ratio from 83% in 1990 to 56% a few years later. All this was tied to strong reforms, like putting the economy in private hands
In the 1990s, Ukraine did not benefit from this help. Instead, its economy was mired in botched privatisations and corruption (all of this is explained well in a new book by Anders Aslund of the Atlantic Council, a think-tank). It made much less progress in reforms than did Poland (see the group of charts below).
All this meant that, over time, the economic fortunes of Poland and Ukraine diverged rapidly. In 1990, Poland and Ukraine had similar levels of GDP per head. Now Polands is three times higher.
http://www.economist.com/blogs/freeexchange/2015/05/ukraine
Demeter
(85,373 posts)Not too good, from all I can gather....
MattSh
(3,714 posts)A pet issue is that the claim that outsourcing and offshoring lower costs is greatly exaggerated. Offshoring and outsourcing (well just say outsourcing for the purposes of this post) do lower direct factor and lower-level worker costs. But they do so at the increase of greater coordination costs of much more highly-paid managers. And they also increase shipping and financings costs, and downside risk. Having people work at a distance, whether managerially or by virtue of being in an outside organization where the relationship is governed by contract, increases rigidity (harder to respond to changes in market demand) and the odds of screw-ups due to communication lapses. And outsourcing also reduces an organizations skills. Those lower-level people have a lot of product know-how that you lose when you transfer activities to an outside operation. Its nice to think that you can hollow out your organization and just do all the sexy design and marketing stuff and dump the grunt work on other players. But over time you are breeding future competitors.
Thus offshoring is best understood as a device for transferring income from the rank and file to middle level and senior executives.
Yesterday in commments, reader Clive explained how outsouring over time starts to create its own bureaucracy bloat. Its the modern corporate version of one of the observations of C. Northcote Parkinson: Officials make work for each other. As Clive describes, the first response to the problems resulting from outsourcing is to try to bury them, since outsourcing is a corporate religion and thus cannot be reversed even when the evidence comes in against it. And then when those costs start becoming more visible, the response is to try to manage them, which means more work (more managerial cost!) and/or hiring more outside specialists (another transfer to highly-paid individuals).
From Clive:
I have to laugh (actually, its more of a groan; if I didnt Id cry) at what has happened quietly and almost imperceptibly at where I work. So unobtrusively did it sneak in, it is now impossible to remove its tentacles.
With the fashionable fad for outsourcing and offshoring, labour has become ridiculously cheap (obviously in the offshore locations more so, but real incomes have also fallen onshore so the same effect is present, albeit to a lesser degree).
As someone put it, management can find people to do the same job cheaper. They cant do it as well, but they can do the job. The snag has been in what precisely constitutes the not as well. Put simply, it needs more people to do the same job and the spans of control are narrower. The people are cheaper, so the overall cost seems lower. But hidden, unbidden, in this change to labour sourcing and organisation, is a new cost, the cost of co-ordination.
Complete story at - http://www.nakedcapitalism.com/2015/05/more-on-the-myth-of-outsourcings-efficiency.html
MattSh
(3,714 posts)Strasbourg, France doesnt seem like the type of place one might happen upon a group of Inuits. But thats just what ministers of the European Parliament (MEPs) will find as they traverse the Quartier Européen this week, as a delegation of native Greenlanders lobby for the lifting of a 2009 European ban on seal products.
The Arctic visitorswho, living in an autonomous country within the Kingdom of Denmark, enjoy EU citizenshipwill tempt MEPs with cuts of barbecued seal meat cooked on an open-air grill. The hope is to convince both lawmakers and the European public that the ban is not only misplacedpredicated on bloody images of clubbed, teddy-bear-faced babiesbut actively contributing to the decline of Greenlands native culture and livelihood.
Specifically, exports of seal pelts have dropped 90% in the years since the ban was implemented. The impact on Greenlands coastal economy has been disastrous. Though the ban included an exemption for indigenous peoples in order to protect distinctive cultures and traditions, the market seems to be negatively affected by the EU initiative, a 2012 report compiled by the European Bureau for Conservation and Development (EBCD) states.
Many attribute the initiative, and others like it, to a campaign launched in the Canadian Arctic by Greenpeace in 1976a campaign that would come to define us as an organization for many years, wrote Joanna Kerr, executive director of Greenpeace Canada in an op-ed for Nunatsiaq News, a weekly newspaper servicing Canadas Inuit-majority regions of Nunavut and Nunavik. The campaign had good intentions: to expose and end the commercial hunting of marine mammals, in particular Canadas commercial seal hunt. Greenpeace disseminated gory images of seal pups bludgeoned and eviscerated by inhumane, corporatist sealersand it worked.
Complete story at - http://qz.com/407924/europes-ban-on-seal-products-has-been-catastrophic-for-greenlands-native-communities/
Demeter
(85,373 posts)EXPENSIVE FOR WHOM? THE RICH, WHO CAN AFFORD IT? OR THE POOR, WHO DESPERATELY NEED A FLOOR UNDER THEIR FEET?
http://www.economist.com/news/finance-and-economics/21651897-replacing-welfare-payments-basic-income-all-alluring?fsrc=scn/tw/te/pe/ed/basicallyunaffordable
WITH cash-strapped governments around the world looking for ways to cut welfare bills and reduce deficits, it might seem an odd time to consider a generous new universal benefit. Yet the basic incomea guaranteed government payment to all citizens, whatever their private wealthis creeping onto the policy agenda. The Swiss will soon vote on a proposal for a basic income of 2,500 francs ($2,700) per month, following the success of a national petition. Amid turmoil in Greece, Yanis Varoufakis, its finance minister, has hinted that he is a fan. Britains Green Party has adopted a version of the policy. Turning it into a substitute for all welfare payments would be prohibitively expensive. But it might work as one element of the safety net.
The idea has a long intellectual heritage. In 1797 Thomas Paine, one of Americas founders, penned a pamphlet arguing that every person is entitled to share in the returns on the common property of humanity: the earths land and natural resources (today, you might include radio spectrum or the profits of central banks). Paine suggested paying citizens the equivalent of around $2,000 in todays moneywhich was then over half the annual income of a laboureron their 21st birthday, in lieu of their share of the planet. The benefit would be granted to all, to avoid creating invidious distinctions between rich and poor. Since Paines proposal, the idea of universal payoutswhether one-off or recurringhas periodically attracted support from both sides of the political aisle.
The left has usually viewed such policies as a way of beefing up the social safety net and fighting inequality. That is particularly appealing in a world where technology creates unimaginable riches for some, but threatens the jobs of others. As early as 1964 James Meade, an economist, argued that technological progress could reduce the demand for labour so much that wages would fall to intolerable lows. In a world where a computer can suddenly make a profession redundant, those who have worked hard cannot be certain of a decent standard of living. That may justify more generous state support.
For their part, right-wing advocates of the citizens income view it as a streamlined replacement for complicated meanstested welfare payments. A system where everyone receives the same amount requires fewer bureaucrats to administer. Existing schemes withdraw benefits from low earners as they earn more, discouraging work and so trapping some in poverty. For this reason, Milton Friedman, an economist known for his laissez-faire beliefs, wanted to replace all welfare with a simpler system that combined a guaranteed minimum income with a flat tax.
Although the basic income has so far failed to take off, it does have a commonplace cousin: the tax-free allowance. In Britain, for example, workers can earn £10,600 ($16,500) before income tax is levied on subsequent earnings (starting at 20%). The exemption is worth just over £2,000 a year to the 92% of taxpayers who earn more than the threshold. For them, there would be no difference if the government replaced the allowance with a payment of similar magnitude. Making the payment universal would be costlier, but could be paid for by paring other welfare payments...
Demeter
(85,373 posts)IN THAT CASE, I'D LIKE TO GIVE IT BACK....SINCE IT'S BROKEN--DESIGN FAILURE!
http://consumerist.com/2015/05/20/gm-that-car-you-bought-were-really-the-ones-who-own-it/
Congratulations! You just bought a new Chevy, GMC, or Cadillac. You really like driving it. And its purchased, not leased, and all paid off with no liens, so its all yours
isnt it? Well, no, actually: according to GM, its still theirs. You just have a license to use it.
At least, thats what an attorney for GM said at a hearing this week, Autoblog reports. Specifically, attorney Harry Lightsey said, It is [GMs] position the software in the vehicle is licensed by the owner of the vehicle.
GMs claim is all about copyright and software code, and its the same claim John Deere is making about their tractors. The TL;DR version of the argument goes something like this:
- Cars work because software tells all the parts how to operate
- The software that tells all the parts to operate is customized code
- That code is subject to copyright
- GM owns the copyright on that code and that software
- A modern car cannot run without that software; it is integral to all systems
- Therefore, the purchase or use of that car is a licensing agreement
- And since it is subject to a licensing agreement, GM is the owner and can allow/disallow certain uses or access.
The U.S. Copyright Office is currently holding a series of hearings on whether or not anyone other than the manufacturer of a car has a right to tinker with that cars copyrighted software. And with the way modern design goes, that basically means with the car, at all.
Folks who like to tinker with their cars, as well as independent (non-dealer) mechanics say they need the copyright exemption in order to be allowed to continue repairing their own cars, or keeping their businesses open. Manufacturers, like GM, say that its a safety issue: if people who arent authorized mess with any one piece of software, they could make the entire ecosystem of connected code unsafe....
Demeter
(85,373 posts)Juries sometimes do strange things, and one in Missouri has ordered a company that buys up consumer debts to pay an astounding $83 million to Maria Guadalupe Mejia of Kansas City. Why, you may ask? The jury said the credit company wrongly tried to collect an erroneous $1,000 credit card bill. Credit.com has an extensive story about this shocker, the woman who sues a debt collector, and then wins $83 Million. KCUR reported the verdict and the jury finding that the defendantPortfolio Recovery Associates LLCwas guilty of violating the Fair Debt Collection Practices Act.
That law contains many safeguards for borrowers. With the small $1,000 disputed debt, as you might imagine, most of the verdict was for allegedly bad conduct, The verdict called for $250,000 in damages plus a few dollars shy of $83 million in punitive damages. The verdict calls it malicious prosecution, the debt not being hers to begin with.
PRA Group Inc., which owns Portfolio Recovery Associates, sent an email statement to Credit.com: This outlandish verdict defies all common sense, wrote spokesman Michael McKeon. We hope and expect the judge will set aside this inappropriate award, and we plan to file motions to make that request formally in the near term. Any fair reading of the facts of this case makes plain that a verdict of this size is not justice by any means, and cannot stand.
CONTINUES WITH TAX ADVICE FOR THOSE EXPECTING A WINDFALL SETTLEMENT...
Demeter
(85,373 posts)Berkshire Hathaway recently announced the current state of its stock portfolio in a regulatory filing, and it showed that the company added significantly to its holdings of Wells Fargoand US Bancorp. Why does Warren Buffett love these banks so much, and is now a good time to buy?
...
Why Wells Fargo and US Bancorp?
During the first quarter, Berkshire increased its stake in Wells Fargo by about 2% to 470.3 million shares, which represents a 9.2% stake in the banking giant. And, the US Bancorp stake grew by 5% to 83.8 million shares, roughly a 4.6% stake. So, why did Berkshire buy shares of these banks, and not say, Citigroup, which many people consider to be "cheap"?
Let's start with Wells Fargo. Buffett first invested in the bank all the way back in 1989 and has consistently added to his holdings over the years. In Berkshire's 1989 letter to shareholders, Buffett wrote, "we look for first-class businesses accompanied by first-class managements," and more recently, Buffett has referred to Wells Fargo as his favorite bank. In fact, Wells Fargo became Berkshire's largest stock investment in 2012. In short, Buffett loves Wells Fargo's culture and management, as well as its focus on consumer banking. Throughout its history, the bank has maintained stronger capital levels and larger reserves than most of its peers, which is apparent when you look at how the bank performs during the tough times. In fact, during the financial crisis in 2008 and 2009, Wells was better capitalized than its peers, and had fewer risky assets on its balance sheet allowing the bank to quickly overcome any crisis-related problems and even take advantage of the situation in several ways (such as acquiring Wachovia cheaply). He also likes Wells Fargo as a great play on the housing recovery. After all, the nation's largest mortgage lender certainly stands to benefit as the housing market improves, right? Plus, with interest rates expected to begin rising later this year, Wells Fargo could also see profits rise as mortgage rates increase and spreads potentially widen. Buffett has even gone so far as to say Wells should continue to expand its mortgage business even further than it already has, calling the mortgage business a "sensational" opportunity for the bank.
US Bancorp has a lot of the same things going for it, with a history of high-quality assets and strong capitalization, as well as a culture of risk management and responsible lending. Plus, US Bancorp is consistently among the most efficient and profitable banks in the market, with ROA, ROE, efficiency ratios, and profit margins that are among the best in the industry. Furthermore, US Bancorp is growing at a rather impressive pace, with year-over-year deposit growth of 8.1% and loan growth of 5.1%, while experiencing an 18.2% decline in net charge-offs. Finally, when it comes to US Bancorp (and Wells Fargo for that matter), the numbers speak for themselves. Just look at how the banks compare with peers in terms of profitability, efficiency, and asset quality.
GRAPH AT LINK
I JUST THINK THE FIX IS IN...BOTH BANKS ARE SLEAZY, BUT THEY DON'T END UP PAYING THE FINES, EITHER....
Demeter
(85,373 posts)?uuid=fc3c5c16-0086-11e5-98e1-365404726f55
Landlords kept financial pressure on tenants last month, as annual rent growth far outpaced households other costs, according to data released Friday.
The cost to rent a primary residence rose 3.5% over the year through April, while the overall consumer-price index dropped 0.2%, dragged down by plunging energy costs, the U.S. Labor Department reported.
With homeownership at the lowest rate in 25 years, and the rental-vacancy rate close to the slimmest proportion in more than two decades, 2015 is seeing a continuation of a landlords market, and letting landlords to charge more.
Just how hot is rent inflation? Annual growth in tenants payments has been between 3.4% and 3.5% for the past six months, higher than an average of about 3% for the past two decades. Builders have ramped up apartment construction, a trend that should ease price pressure, but it will take time for that new supply to become available. As long as demand remains high for apartments, landlords will be able to continue to raise families housing costs.
High rent prices may be affecting other areas of the economy, keeping households from spending their savings from tumbling gasoline prices. Economists had expected a stronger labor market and cheaper gas to lead to more shopping, but that effect hasnt panned out. While energy prices have crept up in recent months, consumer costs for gasoline in April were down more than 30% from a year earlier, the Labor Department reported.
Other data confirm that rents are rising quickly. Real estate site Zillow recently reported that rents in April rose at their fastest pace since 2013, rising 4% year-over-year. Meanwhile, for Americas lowest-paid workers, renting a livable apartment might seem out of reach. The National Low Income Housing Coalition, a Washington-based advocacy group, said this week that in San Francisco, for example, a household would need 3.2 full-time minimum-wage workers to afford a decent two bedroom place at fair market rent.
Demeter
(85,373 posts)That can't be a coincidence, right? There's a building in China that, from above, is a ringer for the U.S.S. Enterprise. It looks like your average, everyday building from ground level, but drone footage reveals it to be a most enterprising architectural design. The building, according to Mashable.com, is the headquarters of NetDragon Websoft, a Chinese gaming and mobile Internet company.
And the site notes, "Company Chairman Liu DeJian is reportedly an uberTrekkie, licensing from CBS the rights to build an Enterprise replica. Construction began in 2008 and was finished in 2014; the project cost $160 million total. The building is the only officially licensed Star Trek building on the planet."
Demeter
(85,373 posts)Puerto Rico is billions of dollars in debt and its people are leaving in droves. But America is turning its back on the territory, focusing instead on its near neighbour Cuba, whose electorate want closer ties. David Usborne reports from San Juan...
The posh boutiques that once lined cobbled Calle Fortaleza are gone now, replaced by T-shirt and souvenir shops grasping for dollars from passengers swarming down the gangways of the Carnival cruise ships that dock here most mornings. Bars advertise happy hours lasting from noon till night, while old men pushing tatty ice-cream carts go mostly unnoticed. Old San Juan, the colonial gem of Puerto Ricos capital San Juan, is tired but clinging on. Elsewhere on the island, the story is graver. Exhausted by a recession that has lasted for most of the past eight years and by talk of a possible default on government debt, Puerto Ricans are leaving in droves. Many who stay are jobless; doctors who havent been paid in months are downing their stethoscopes.
The pain that is Puerto Ricos and could soon be Wall Streets if the debt crisis isnt resolved is poignant. Some blame its step-child relationship with America, neither a fully-fledged US state nor an independent nation. It hardly helps that Washington barely seems to care while at the same time it is suddenly lavishing attention on Cuba, its near neighbour to the west. The island has lost 20 per cent of its jobs since 2006. The unemployment rate stands at over 13 per cent. Its no wonder people want to get out. People who graduate from the university go straight to the airport and never come back, lamented Christopher Torres, 25, an activist studying computer engineering at the University of Puerto Rico, who recently led a student protest against proposed spending cuts. Some 144,000 Puerto Ricans decamped for the US last year and a higher number may depart in 2015. A White House official privately described it as the biggest population displacement ever seen outside of a war. Among those packing their bags are disenchanted doctors. Victor Ramos, the president of the Physicians and Surgeons Association, noted in an interview that there are now only two paediatric neurosurgeons left on the island and also only two paediatric cardiac specialists. Of those one is 90 years old. Last year we calculate that 361 doctors left the island, thats one per day. This year we expect 500 or more.
While the rest of the region and the US bounce back, the economic picture here could barely be more scary. Because successive governors, from either of its two main parties, have for years papered over budget deficits by borrowing, Puerto Rico now lies $73bn (£47bn) in debt, compared with the $18bn owed by Detroit when it declared bankruptcy. Moreover, while US laws allowed Detroit to get out of its hole by declaring bankruptcy they forbid Puerto Rico from doing the same. The debt hole is worse than anyone is admitting. Beyond what it owes to bond investors, the government is also facing a $34bn gap in money that should have been paid into the public workers pension system. If you reckon that its obligations therefore exceed $100bn that then translates into a jaw-dropping $100,000 in debt for every working person on the island.
THAT'S THE ULTIMATE, UP-TO-DATE SUMMARY OF OUR SUBJECT, ISN'T IT? AMERICA HAS NO BUSINESS TRYING TO BE AN EMPIRE....IT HASN'T THE NOBLESSE OBLIGE TO PULL IT OFF.
AMERICAN GOVERNMENT DOESN'T RECOGNIZE ITS RESPONSIBILITY FOR ANYTHING, ACTUALLY.
MORE BAD NEWS ABOUT PUERTO RICO AT LINK
Demeter
(85,373 posts)Demeter has been having a hard time in the garden, what with Arctic winters and yo-yo Springs and it looks like a long, hot summer to come this year...
BUT!
Last year, under the most adverse of circumstances, I planted two rhubarb plants. This was my second attempt, the year before I never even got the plants in the ground. I was certain the cause was lost...my supplier didn't even stock rhubarb this year.
BUT!
Both plants are alive and flourishing! I finally got the nerve up to take a look. (It's been a really bad year, and I've no hope of improvement; I am experiencing a slow motion nervous breakdown, and Mercury is still retrograde.)
Of course, with the erratic 80F days every other week, the plants have bolted and are in the flowering phase, but they are looking really healthy. Since rhubarb is essentially a weed, native to the Volga River, imported around 1800 to the US, I am hoping it's hard to kill....
So, I'm going to the garden for some therapy...there's weeds to pull, and roses to inventory, annuals to plant, etc. As long as my bitchy "neighbors" keep their ignorant paws off my plants... you wouldn't believe the nerve of some people!
Demeter
(85,373 posts)WHAT WERE YOU THINKING??!!! THAT WOULD BE MY FIRST QUESTION
http://www.washingtonpost.com/politics/clintons-raised-nearly-2-billion-for-foundation-since-2001/2015/02/18/b8425d88-a7cd-11e4-a7c2-03d37af98440_story.html
Since its creation in 2001, the Bill, Hillary and Chelsea Clinton Foundation has raised close to $2 billion from a vast global network that includes corporate titans, political donors, foreign governments and other wealthy interests, according to a Washington Post review of public records and newly released contribution data.
The total, representing cash and pledges reported in tax filings, includes $262 million that was raised in 2013 the year Hillary Rodham Clinton stepped down as secretary of state and began to devote her energies to the foundation and to a likely second run for president.
The financial success of the foundation, which funds charitable work around the world, underscores the highly unusual nature of another Clinton candidacy. The organization has given contributors entree, outside the traditional political arena, to a possible president. Foreign donors and countries that are likely to have interests before a potential Clinton administration and yet are ineligible to give to U.S. political campaigns have affirmed their support for the familys work through the charitable giving.
The Post review of foundation data, updated this month on the groups Web site to reflect giving through 2014, found substantial overlap between the Clinton political machinery and the foundation.
Politics
Clintons foundation has raised nearly $2 billion and some key questions
Hillary, Chelsea and Bill Clinton attend the Clinton Global Initiative in New York in September 2013. (AFP/AFP/Getty Images)
By Rosalind S. Helderman, Tom Hamburger and Steven Rich February 18
Since its creation in 2001, the Bill, Hillary and Chelsea Clinton Foundation has raised close to $2 billion from a vast global network that includes corporate titans, political donors, foreign governments and other wealthy interests, according to a Washington Post review of public records and newly released contribution data.
The total, representing cash and pledges reported in tax filings, includes $262 million that was raised in 2013 the year Hillary Rodham Clinton stepped down as secretary of state and began to devote her energies to the foundation and to a likely second run for president.
The financial success of the foundation, which funds charitable work around the world, underscores the highly unusual nature of another Clinton candidacy. The organization has given contributors entree, outside the traditional political arena, to a possible president. Foreign donors and countries that are likely to have interests before a potential Clinton administration and yet are ineligible to give to U.S. political campaigns have affirmed their support for the familys work through the charitable giving.
The Post review of foundation data, updated this month on the groups Web site to reflect giving through 2014, found substantial overlap between the Clinton political machinery and the foundation. Nearly half of the major donors who are backing Ready for Hillary, a group promoting her 2016 presidential bid, as well as nearly half of the bundlers from her 2008 campaign, have given at least $10,000 to the foundation, either on their own or through foundations or companies they run....
AND THAT'S A BUG, NOT A FEATURE. IF HILLARY WANTED TO GO FOR THE GOLD, SHE OUGHT TO GIVE UP HER POLITICAL AMBITIONS...
MORE SLEAZE AT LINK
Demeter
(85,373 posts)Russia would adopt a tough position if Ukraine decided not to pay off debts owed to Moscow by its previous government, Russian Prime Minister Dmitry Medvedev said in an interview broadcast by Russian TV on Saturday. Russia has spoken out against a new Ukrainian law allowing a moratorium on foreign debt repayments, threatening to take Ukraine to court if it fails to repay $3 billion that Russia lent it in 2013. In his interview, Medvedev called the new law "contradictory."
"Probably they are talking about private debts, but at the same time they are hinting that they aren't prepared to pay off the debts of the (former Ukrainian president Viktor) Yanukovich government," Medvedev said.
"If it is actually formulated in this way this would undoubtedly be a default of Ukraine ... We would adopt as tough a position as possible in this case and defend our national interests," Medvedev told the Vesti on Saturday program on state TV channel Rossiya.
He added that any such refusal would "undoubtedly influence the process of their agreement with the International Monetary Fund" a seeming reference to IMF rules that require financial assistance recipients to honor debts to other governments.
Medvedev also said that Russia was "not indifferent" to debts owed by Ukraine to private Russian creditors, as the bulk of these debts are owed to banks with state ownership.
"We will collect (the debts)," Medvedev said. "Banks will use all instruments that exist, including, naturally, judicial procedures," he said.
Read more: http://uk.businessinsider.com/r-russia-to-adopt-tough-position-if-ukraine-defaults---pm-medvedev-2015-5#ixzz3b96YNila
Demeter
(85,373 posts)"It's harder to write fiction than nonfiction. Fiction has to make sense." Tom Clancy
Demeter
(85,373 posts)Demeter
(85,373 posts)A correspondent whom I respect has (gently) challenged me to say plainly what I think Cyprus should do leaving aside all questions about political realism. And hes right: while I think its OK to spend most of my time on this blog working within the limits of the politically possible, and relying on a combination of reason and ridicule to push out those limits over time, once in a while I should just flatly state what I would do if given a chance.
So here it is: yes, Cyprus should leave the euro. Now.
The reason is straightforward: staying in the euro means an incredibly severe depression, which will last for many years while Cyprus tries to build a new export sector. Leaving the euro, and letting the new currency fall sharply, would greatly accelerate that rebuilding.
If you look at Cypruss trade profile, you see just how much damage the country is about to sustain. This is a highly open economy with just two major exports, banking services and tourism and one of them just disappeared. This would lead to a severe slump on its own. On top of that, the troika is demanding major new austerity, even though the country supposedly has rough primary (non-interest) budget balance. I wouldnt be surprised to see a 20 percent fall in real GDP.
Whats the path forward? Cyprus needs to have a tourist boom, plus a rapid growth of other exports my guess would be agriculture as a driver, although I dont know much about it. The obvious way to get there is through a large devaluation; yes, in the end this probably does come down to cheap deals that attract lots of British package tours...
AS WE ALL KNOW, THIS DIDN'T HAPPEN, MAKING KRUGMAN'S SCORE A PERFECT ZERO...