Debt Ceiling Games – Court Could End Leverage

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The Constitution of the United States:

Fourteenth Amendment, Section 4: 
The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. 
     
Twenty-Seventh Amendment: No law, varying the compensation for the services of the Senators and Representatives, shall take effect, until an election of Representatives shall have intervened.

In the debate over whether the president should simply pay bills owed by the United States, missing is the key aspect of whether the Courts would back him up. The bill passed in the House Wednesday, set for passage in the Senate, delays the debt ceiling for four months but ties the action to House and Senate salaries. The courts, including the Supreme Court, would likely confirm the president’s Constitutional obligation to pay the U.S. debts and would declare unconstitutional the link to issuing congressional paychecks. The congressional leadership insisted on reading the full Constitution aloud at the beginning of the session. We do not believe they skipped the relevant sections.

Under contract law, entities must pay bills for expenses they obligate. So must the U.S. government. The 14th Amendment, Section 4 states: “The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.” The “inclusion” is to emphasize those are a part of what must be paid, not the sole items. 

The latest House bill “holding salaries of Members of Congress in escrow upon failure to agree to budget resolution” directly flies in the face of the 27th Amendment to the Constitution, which states: “No law, varying the compensation for the services of the Senators and Representatives, shall take effect, until an election of Representatives shall have intervened.”

A court ruling affirming presidential power under Amendment XIV of the Constitution would remove congressional leverage for another “fiscal cliff” and end stop the now-regular debt ceiling games. It would give teeth to President Obama’s statement that paying the country’s debt is “not a bargaining chip” despite congressional demands that debt be used as leverage to make cuts in Social Security and Medicare. Court approval would stop the congressional fiscal cliff insanity. The White House should institute or support this move.

Congressional legislation on the debt is not needed and has only been passed since 1917. Prior to 1917 Congress simply “authorized” the funding – which it still separately does in “authorization” bills.


The new Republican strategies are “a reflection of the same kind of politics of that 112th Congress, which reflected political gamesmanship rather than substantive policy,” Steny Hoyer, the House Democratic Whip, said. In four months, Republicans will continue to try to use the debt ceiling as leverage.

House Democratic Leader Nancy Pelosi said that she would use the 14th amendment to pay US debt “in a second.” House Democratic Assistant Leader Jim Clyburn (D-N.C.) told us, “The president should just use the Constitution.”  

Former President Bill Clinton, who Obama says should be “Secretary of Explaining Stuff,” stated he would use the 14th amendment “without hesitation.” Former House Speaker Newt Gingrich (R-Ga.) asserted the debt ceiling is “frankly a dead loser” because “the whole national financial system is going to say, ‘The entire economy of the world will collapse,’” and Congress “will cave.” 

Rep. John Conyers (D-Mich.), Ranking Member of the House Judiciary Committee and the second longest serving Member of Congress, argued, “It’s my belief that the courts would support the president if he cited the 14th Amendment and instructed our executive agencies to pay the nation’s debts.” He told us that the new salary tie “is not constitutional” and “shows how superficial” the legislation is.

Top constitutional authorities Michael Dorf, former law clerk for U.S. Supreme Court Justice Kennedy and law professor at Cornell University, and Neil Buchanan, law professor at George Washington University, wrote in the Columbia Law Review in October, “Given the balance of constitutional, practical, and prudential considerations,” the most constitutional choice “would be for the president to continue to issue debt, in the amounts authorized by the duly enacted budget of the United States.”

President Obama has been reluctant so far to say he will invoke the 14th Amendment. The president is by experience a state and federal legislator who has worked by successful compromise and consensus. The White House may not realize the likely Court support for paying the nation’s bills.
 
If President Obama wants his 2nd term agenda not to be handcuffed by ongoing debt ceiling games, he could seek Court support against the constant threats to throw our economy under the bus.

FSIS Announces Major Cut in Import Inspections Four Years After It Took Effect

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WASHINGTON – January 25 – Today, USDA’s Food Safety and Inspection Service (FSIS) published a Notice in the Federal Register that it has made a major change to the way it conducts inspections of countries that are eligible to export meat, poultry and egg products to the U.S. (Ongoing Equivalence Verifications of Foreign Regulatory Systems, Docket No. FSIS-2012-0049). The agency is also requesting public comments on this change. Food & Water Watch, a national consumer organization, says the announcement and accompanying public comment period regarding changes in the import inspection program are too little, too late, since the change took place four years ago, at the beginning of the first Obama Administration.

“It is time for the Obama Administration to fund this vital consumer protection program adequately and stop trying to rationalize the ways it has weakened it,” said Hauter. “Publishing a Federal Register Notice four years after the fact and requesting comments on the new policy is both futile and insulting.”

Until 2009, FSIS conducted in-depth annual on-site audits of countries that are eligible to export meat, poultry and egg products to the U.S. The system that FSIS used has been hailed as a model for other food safety agencies both here and abroad to ensure the safety of imported food. Apparently in 2009, a major change occurred when FSIS stopped visiting countries annually and instead started to rely on a “Self-Reporting Tool” for countries as a substitute to annual audit visits; countries were self-reporting that they were in compliance with USDA food safety and inspection standards. FSIS began conducting audit visits every three years instead of annually and the agency stopped the practice of publishing the audit results of individual foreign meat, poultry, egg plants that exported products to the U.S.

Food & Water Watch recently filed a Freedom of information Act request for those plant audits and has received 155 pages of documents in response.

This new policy remained under the radar screen until the fall of 2012 when both the former Under Secretary for Food Safety for the George W. Bush Administration Richard Raymond and Helena Bottemiller of Food Safety News exposed it. Food & Water Watch also became concerned as early as February 2010 when the Obama Administration proposed its FY 2011 budget that showed a 15.8 percent reduction in the FSIS budget for international programs.

The Federal Register Notice that will appear tomorrow is announcing a change the agency has already made. The agency has rationalized its decision to reduce the number of foreign audits based on vague recommendations made by USDA’s National Advisory Committee on Meat and Poultry Inspection in August 2008. Both members of that Committee and former Under Secretary for Food Safety Richard Raymond, have stated that they never contemplated that FSIS would gut the import inspection program the way it has.   

Because FSIS stopped its practice of annual audits, Canada experienced its largest meat recall in history in the fall of 2012 that also spilled over into the U.S., with some 2.5 million pounds of imported contaminated beef entering U.S. commerce. Because FSIS stopped its annual audits, the number of rejections of Australian meat products for fecal contamination has skyrocketed over the past year.

The Obama Administration has cut the budget for the import inspection program at FSIS, despite the fact that Congress has appropriated the money that the Obama Administration requested. In the meantime, the Obama Administration is moving forward with plans to import processed poultry products from the People’s Republic of China and South Korea at a time when FSIS cannot adequately monitor the safety of imports from the countries that already export their products here.

“We’re not just importing China’s food–we’re importing China’s food safety problems along with it,” said Hauter. “It’s doubly important to fund our import food inspection programs adequately as more foods from abroad reach our shores.”

Food & Water Watch works to ensure the food, water and fish we consume is safe, accessible and sustainable. So we can all enjoy and trust in what we eat and drink, we help people take charge of where their food comes from, keep clean, affordable, public tap water flowing freely to our homes, protect the environmental quality of oceans, force government to do its job protecting citizens, and educate about the importance of keeping shared resources under public control.

Food & Water Watch is a nonprofit consumer organization that works to ensure clean water and safe food. We challenge the corporate control and abuse of our food and water resources by empowering people to take action and by transforming the public consciousness about what we eat and drink.

FSIS Announces Major Cut in Import Inspections Four Years After It Took Effect

0

WASHINGTON – January 25 – Today, USDA’s Food Safety and Inspection Service (FSIS) published a Notice in the Federal Register that it has made a major change to the way it conducts inspections of countries that are eligible to export meat, poultry and egg products to the U.S. (Ongoing Equivalence Verifications of Foreign Regulatory Systems, Docket No. FSIS-2012-0049). The agency is also requesting public comments on this change. Food & Water Watch, a national consumer organization, says the announcement and accompanying public comment period regarding changes in the import inspection program are too little, too late, since the change took place four years ago, at the beginning of the first Obama Administration.

“It is time for the Obama Administration to fund this vital consumer protection program adequately and stop trying to rationalize the ways it has weakened it,” said Hauter. “Publishing a Federal Register Notice four years after the fact and requesting comments on the new policy is both futile and insulting.”

Until 2009, FSIS conducted in-depth annual on-site audits of countries that are eligible to export meat, poultry and egg products to the U.S. The system that FSIS used has been hailed as a model for other food safety agencies both here and abroad to ensure the safety of imported food. Apparently in 2009, a major change occurred when FSIS stopped visiting countries annually and instead started to rely on a “Self-Reporting Tool” for countries as a substitute to annual audit visits; countries were self-reporting that they were in compliance with USDA food safety and inspection standards. FSIS began conducting audit visits every three years instead of annually and the agency stopped the practice of publishing the audit results of individual foreign meat, poultry, egg plants that exported products to the U.S.

Food & Water Watch recently filed a Freedom of information Act request for those plant audits and has received 155 pages of documents in response.

This new policy remained under the radar screen until the fall of 2012 when both the former Under Secretary for Food Safety for the George W. Bush Administration Richard Raymond and Helena Bottemiller of Food Safety News exposed it. Food & Water Watch also became concerned as early as February 2010 when the Obama Administration proposed its FY 2011 budget that showed a 15.8 percent reduction in the FSIS budget for international programs.

The Federal Register Notice that will appear tomorrow is announcing a change the agency has already made. The agency has rationalized its decision to reduce the number of foreign audits based on vague recommendations made by USDA’s National Advisory Committee on Meat and Poultry Inspection in August 2008. Both members of that Committee and former Under Secretary for Food Safety Richard Raymond, have stated that they never contemplated that FSIS would gut the import inspection program the way it has.   

Because FSIS stopped its practice of annual audits, Canada experienced its largest meat recall in history in the fall of 2012 that also spilled over into the U.S., with some 2.5 million pounds of imported contaminated beef entering U.S. commerce. Because FSIS stopped its annual audits, the number of rejections of Australian meat products for fecal contamination has skyrocketed over the past year.

The Obama Administration has cut the budget for the import inspection program at FSIS, despite the fact that Congress has appropriated the money that the Obama Administration requested. In the meantime, the Obama Administration is moving forward with plans to import processed poultry products from the People’s Republic of China and South Korea at a time when FSIS cannot adequately monitor the safety of imports from the countries that already export their products here.

“We’re not just importing China’s food–we’re importing China’s food safety problems along with it,” said Hauter. “It’s doubly important to fund our import food inspection programs adequately as more foods from abroad reach our shores.”

Food & Water Watch works to ensure the food, water and fish we consume is safe, accessible and sustainable. So we can all enjoy and trust in what we eat and drink, we help people take charge of where their food comes from, keep clean, affordable, public tap water flowing freely to our homes, protect the environmental quality of oceans, force government to do its job protecting citizens, and educate about the importance of keeping shared resources under public control.

Food & Water Watch is a nonprofit consumer organization that works to ensure clean water and safe food. We challenge the corporate control and abuse of our food and water resources by empowering people to take action and by transforming the public consciousness about what we eat and drink.

The Myth of Living Beyond Our Means

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Brace yourself. In coming weeks you’ll hear there’s no serious alternative to cutting Social Security and Medicare, raising taxes on middle class, and decimating what’s left of the federal government’s discretionary spending on everything from education and job training to highways and basic research.

“We” must make these sacrifices, it will be said, in order to deal with our mushrooming budget deficit and cumulative debt.

But most of the people who are making this argument are very wealthy or are sponsored by the very wealthy: Wall Street moguls like Pete Peterson and his “Fix the Debt” brigade, the Business Roundtable, well-appointed think tanks and policy centers along the Potomac, members of the Simpson-Bowles commission. 

These regressive sentiments are packaged in a mythology that Americans have been living beyond our means: We’ve been unwilling to pay for what we want government to do for us, and we are now reaching the day of reckoning. 

The truth is most Americans have not been living beyond their means. The problem is their means haven’t been keeping up with the growth of the economy – which is why most of us need better education, infrastructure, and healthcare, and stronger safety nets.

The real median wage is only slightly higher now than it was 30 years ago, even though the economy is twice as large.

The only people whose means have soared are at the very top, because they’ve received almost all the gains from growth. Over the last three decades, the top 1 percent’s share of the nation’s income has doubled; the top one-tenth of 1 percent’s share, tripled. The richest one-tenth of 1 percent is now earning as much as the bottom 120 million Americans put together.

Wealth has become even more concentrated than income (income is a stream of money, wealth is the pool into which it flows).  

The richest 1 percent now own more than 35 percent of all of the nation’s household wealth, and 38 percent of the nation’s financial assets — including stocks and pension funds.

Think about this: The richest 400 Americans have more wealth than the bottom 150 million of us put together. The 6 Walmart heirs have more wealth than bottom 33 million American families combined.

So why are we even contemplating cutting programs the middle class and poor depend on, and raising their taxes?

We should tax the vast accumulations of wealth now in the hands of a relative few.

To the extent they have any wealth at all, most Americans have it in their homes — whose prices have stopped falling in most of the country but are still down almost 30 percent from their 2006 peak.

Yet homes are subject to the only major tax on wealth – property taxes.

Yale Professor Bruce Ackerman and Anne Alstott have proposed a 2 percent surtax on the wealth of the richest one-half of 1 percent of Americans owning more than $7.2 million of assets.

They figure it would generate $70 billion a year, or $750 billion over the decade. That’s more than the fiscal cliff deal raises from high-income Americans.

Together, the two sets of taxes on the wealthy – tax increases contained in the fiscal cliff agreement, and a wealth tax such as Ackerman and Alstott have proposed – would just about equal the spending cuts the White House has already agreed to, totaling $1.5 trillion (or $1.7 trillion including interest savings).

That seems about right.

Frontline Gets Its Man: Lanny Breuer Leaves DOJ After Exposé

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In a testament to the power of independent media, the award-winning public television show Frontline this week helped push a top Department of Justice (DOJ) official out the door.

On Tuesday, Frontline aired a report called “The Untouchables” detailing the DOJ’s failure to prosecute the big banks for the 2008 financial meltdown and zeroing in on Lanny Breuer, the former White House legal counsel for Clinton who headed the DOJ’s criminal division under Obama.

On Wednesday, the Washington Post reported that Breuer was stepping down.

Many had criticized Attorney General Eric Holder and Breuer for failing to take action against the mega banks on Wall Street, and watched with disbelief last December as the DOJ decided to pass on criminal penalties against HSBC for laundering drug money and helping to finance terrorists. The behemoth bank was ordered to pay a record civil fine, but no criminal charges were lodged against any HSBC official. A New York Times editorial called the decision a “dark day for the rule of law.”

But this time around, the Frontline crew had unparalleled access to Breuer which generated a number of key revelations:

Frontline documented that Breuer/Holder failed to use the tools available to them to really dig.

FRONTLINE: We spoke to a couple of sources from within the Criminal Division, and they reported that when it came to Wall Street, there were no investigations going on. There were no subpoenas, no document reviews, no wiretaps.

LANNY BREUER: Well, I don’t know who you spoke with because we have looked hard at the very types of matters that you’re talking about.

Frontline documented that Breuer/Holder failed to reach out to key whistle blowers.

FRONTLINE: Another criticism that has been thrown at you is that you’ve not done enough to go looking for the whistle-blowers that are out there. We have been able to contact a number of people who were inside the banks, doing due diligence work as contractors, who all told us that they were never contacted by the Justice Department.

BREUER: I can’t talk in general about nondescript, anonymous whistle-blowers. But here’s what I can tell you. Whenever I personally have been in any public setting, I’ve invited whistle-blowers to come forward.

Frontline documented that Breuer/Holder worried more about the fragility of the banks than cleaning up corruption on Wall Street.

FRONTLINE: You gave a speech before the New York Bar Association. You talked about your use of nonprosecution and deferred prosecution agreements. And in that speech, you made a reference to “losing sleep at night over worrying about what a lawsuit might result in at a large financial institution.” Is that really the job of a prosecutor, to worry about anything other than simply pursuing justice?

BREUER: I think I and prosecutors around the country, being responsible, should speak to regulators, should speak to experts, because if I bring a case against institution A, and as a result of bringing that case there’s some huge economic effect, it affects the economy so that employees who had nothing to do with the wrongdoing of the company… If it creates a ripple effect so that suddenly counterparties and other financial institutions or other companies that had nothing to do with this are affected badly, it’s a factor we need to know and understand.

Just this week Pro Publica put out another blockbuster report about the corruption at Morgan Stanley before the financial meltdown, unveiling documents where employees dubbed the securities they were peddling: “Subprime Meltdown,” “Nuclear Holocaust,” “Shitbag.” This information was garnered not from the federal government prosecutions, but from a private lawsuit against the bank.

Before his appointment at the DOJ, Breuer had worked at the Washington office of Covington & Burling LLP alongside Holder. The firm specializes in helping big name corporations, including tobacco firms, evade taxes and get off the hook for crimes and malfeasance. Breuer is likely to return to that natural perch, unfortunately he will be leaving Holder behind to continue business as usual at the DOJ.

© 2012 Center for Media & Democracy

Frontline Gets Its Man: Lanny Breuer Leaves DOJ After Exposé

0

In a testament to the power of independent media, the award-winning public television show Frontline this week helped push a top Department of Justice (DOJ) official out the door.

On Tuesday, Frontline aired a report called “The Untouchables” detailing the DOJ’s failure to prosecute the big banks for the 2008 financial meltdown and zeroing in on Lanny Breuer, the former White House legal counsel for Clinton who headed the DOJ’s criminal division under Obama.

On Wednesday, the Washington Post reported that Breuer was stepping down.

Many had criticized Attorney General Eric Holder and Breuer for failing to take action against the mega banks on Wall Street, and watched with disbelief last December as the DOJ decided to pass on criminal penalties against HSBC for laundering drug money and helping to finance terrorists. The behemoth bank was ordered to pay a record civil fine, but no criminal charges were lodged against any HSBC official. A New York Times editorial called the decision a “dark day for the rule of law.”

But this time around, the Frontline crew had unparalleled access to Breuer which generated a number of key revelations:

Frontline documented that Breuer/Holder failed to use the tools available to them to really dig.

FRONTLINE: We spoke to a couple of sources from within the Criminal Division, and they reported that when it came to Wall Street, there were no investigations going on. There were no subpoenas, no document reviews, no wiretaps.

LANNY BREUER: Well, I don’t know who you spoke with because we have looked hard at the very types of matters that you’re talking about.

Frontline documented that Breuer/Holder failed to reach out to key whistle blowers.

FRONTLINE: Another criticism that has been thrown at you is that you’ve not done enough to go looking for the whistle-blowers that are out there. We have been able to contact a number of people who were inside the banks, doing due diligence work as contractors, who all told us that they were never contacted by the Justice Department.

BREUER: I can’t talk in general about nondescript, anonymous whistle-blowers. But here’s what I can tell you. Whenever I personally have been in any public setting, I’ve invited whistle-blowers to come forward.

Frontline documented that Breuer/Holder worried more about the fragility of the banks than cleaning up corruption on Wall Street.

FRONTLINE: You gave a speech before the New York Bar Association. You talked about your use of nonprosecution and deferred prosecution agreements. And in that speech, you made a reference to “losing sleep at night over worrying about what a lawsuit might result in at a large financial institution.” Is that really the job of a prosecutor, to worry about anything other than simply pursuing justice?

BREUER: I think I and prosecutors around the country, being responsible, should speak to regulators, should speak to experts, because if I bring a case against institution A, and as a result of bringing that case there’s some huge economic effect, it affects the economy so that employees who had nothing to do with the wrongdoing of the company… If it creates a ripple effect so that suddenly counterparties and other financial institutions or other companies that had nothing to do with this are affected badly, it’s a factor we need to know and understand.

Just this week Pro Publica put out another blockbuster report about the corruption at Morgan Stanley before the financial meltdown, unveiling documents where employees dubbed the securities they were peddling: “Subprime Meltdown,” “Nuclear Holocaust,” “Shitbag.” This information was garnered not from the federal government prosecutions, but from a private lawsuit against the bank.

Before his appointment at the DOJ, Breuer had worked at the Washington office of Covington & Burling LLP alongside Holder. The firm specializes in helping big name corporations, including tobacco firms, evade taxes and get off the hook for crimes and malfeasance. Breuer is likely to return to that natural perch, unfortunately he will be leaving Holder behind to continue business as usual at the DOJ.

© 2012 Center for Media & Democracy

TEPCO Pushes Plan to Dump Fukushima’s Radioactive Water into Pacific

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The Tokyo Electric Power Co. (TEPCO) announced Thursday plans to dump its stores of contaminated water–used to cool the damaged nuclear reactors at the Fukushima Dai-ichi plant–into the Pacific Ocean.

(Photo: Greenpeace) According to the Japan Times, TEPCO says the measure is “necessary because the utility fears it will eventually run out of capacity to store radioactive water that continues to accumulate at the plant due to water being injected to help cool the three reactors that experienced core meltdowns in March 2011.”

Though the action will need approval from local governments, plant officials have struggled for months to find ways to store the accumulating amount of toxic water. According to the report, TEPCO is increasing the number of storage tanks, but has issued a warning that they will soon reach full capacity.

Choice of Mary Jo White to Head SEC Puts Fox In Charge of Hen House

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I was shocked when I heard that Mary Jo White, a former U.S. Attorney and a partner for the white-shoe Wall Street defense firm Debevoise and Plimpton, had been named the new head of the SEC.Mary Jo White. “If Barack Obama wanted to send a signal that he’s getting tougher on Wall Street, he sure picked a funny way to do it,” writes Taibbi. (Photo: Alex Wong/Getty Images)

I thought to myself: Couldn’t they have found someone who wasn’t a key figure in one of the most notorious scandals to hit the SEC in the past two decades? And couldn’t they have found someone who isn’t a perfect symbol of the revolving-door culture under which regulators go soft on suspected Wall Street criminals, knowing they have million-dollar jobs waiting for them at hotshot defense firms as long as they play nice with the banks while still in office?

I’ll leave it to others to chronicle the other highlights and lowlights of Mary Jo White’s career, and focus only on the one incident I know very well: her role in the squelching of then-SEC investigator Gary Aguirre’s investigation into an insider trading incident involving future Morgan Stanley CEO John Mack. While representing Morgan Stanley at Debevoise and Plimpton, White played a key role in this inexcusable episode.

As I explained a few years ago in my story, “Why Isn’t Wall Street in Jail?”: The attorney Aguirre joined the SEC in 2004, and two days into his job was asked to look into reports of suspicious trading activity involving a hedge fund called Pequot Capital, and specifically its megastar trader, Art Samberg. Samberg had made suspiciously prescient trades ahead of the acquisition of a firm called Heller Financial by General Electric, pocketing about $18 million in a period of weeks by buying up Heller shares before the merger, among other things.

“It was as if Art Samberg woke up one morning and a voice from the heavens told him to start buying Heller,” Aguirre recalled. “And he wasn’t just buying shares — there were some days when he was trying to buy three times as many shares as were being traded that day.”

Aguirre did some digging and found that Samberg had been in contact with his old friend John Mack before making those trades. Mack had just stepped down as president of Morgan Stanley and had just flown to Switzerland, where he’d interviewed for a top job at Credit Suisse First Boston, the company that happened to be the investment banker for . . . Heller Financial.

Now, Mack had been on Samberg’s case to cut him in on a deal involving a spinoff of Lucent. “Mack is busting my chops” to let him in on the Lucent deal, Samberg told a co-worker.

So when Mack returned from Switzerland, he called Samberg. Samberg, having done no other research on Heller Financial, suddenly decided to buy every Heller share in sight. Then he cut Mack into the Lucent deal, a favor that was worth $10 million to Mack.

Aguirre thought there was clear reason to investigate the matter further and pressed the SEC for permission to interview Mack. Not arrest the man, mind you, or hand him over to the CIA for rendition to Egypt, but merely to interview the guy. He was denied, his boss telling him that Mack had “powerful political connections” (Mack was a fundraising Ranger for President Bush).

But that wasn’t all. Morgan Stanley, which by then was thinking of bringing Mack back as CEO, started trying to backdoor Aguirre and scuttle his investigation by going over his head. Who was doing that exactly? Mary Jo White. This is from the piece I mentioned, :

It didn’t take long for Morgan Stanley to work its way up the SEC chain of command. Within three days, another of the firm’s lawyers, Mary Jo White, was on the phone with the SEC’s director of enforcement. In a shocking move that was later singled out by Senate investigators, the director actually appeared to reassure White, dismissing the case against Mack as “smoke” rather than “fire.” White, incidentally, was herself the former U.S. attorney of the Southern District of New York – one of the top cops on Wall Street . . .

Aguirre didn’t stand a chance. A month after he complained to his supervisors that he was being blocked from interviewing Mack, he was summarily fired, without notice. The case against Mack was immediately dropped: all depositions canceled, no further subpoenas issued. “It all happened so fast, I needed a seat belt,” recalls Aguirre, who had just received a stellar performance review from his bosses. The SEC eventually paid Aguirre a settlement of $755,000 for wrongful dismissal.

It got worse. Not only did the SEC ultimately delay the interview of Mack until after the statute of limitations had expired, and not only did the agency demand an investigation into possible alternative sources for Samberg’s tip (what Aguirre jokes was like “O.J.’s search for the real killers”), but the SEC official who had quashed the Mack investigation, Paul Berger, took a lucrative job working for Morgan Stanley’s law firm, Debevoise and Plimpton, just nine months after Aguirre was fired.

It later came out that Berger had expressed interest in working for the firm during the exact time that Aguirre was being dismissed and the Mack investigation was being quashed. A Senate investigation later uncovered an email to Berger from another SEC official, Lawrence West, who was also interviewing with Debevoise and Plimpton at the time. This is from the Senate report on the Aguirre affair:

The e-mail was dated September 8, 2005 and addressed to Paul Berger with the subject line, “Debevoise.” The body of the message read, “Mary Jo [White] just called. I mentioned your interest.”

So Berger was passing notes in class to Mary Jo White about wanting to work for Morgan Stanley’s law firm while he was in the middle of quashing an investigation into a major insider trading case involving the C.E.O. of the bank. After the case dies, Berger later gets the multimillion-dollar posting and the circle is closed.

This whole episode highlights everything that’s wrong with modern Wall Street. First of all, everybody’s buddies with each other — cops and robbers, no adversarial system at all. As Bill Murray would say, it’s dogs and cats, living together.

Here, a line investigator gets a good lead, it’s quickly taken out of his hands and the whole thing is negotiated at 50,000 feet by friends and former co-workers of the top regulators now working at hotshot firms.

If Barack Obama wanted to send a signal that he’s getting tougher on Wall Street, he sure picked a funny way to do it, nominating the woman who helped John Mack get off on the slam-dunkiest insider trading case ever to cross an SEC investigator’s desk.

When I contacted Gary today, his take on it was simple. “Obama is not going to clean up financial corruption,” he said, “by pinning a sheriff’s badge on Wall Street’s protector-in-chief.”

© 2013 Rolling Stone

Choice of Mary Jo White to Head SEC Puts Fox In Charge of Hen House

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I was shocked when I heard that Mary Jo White, a former U.S. Attorney and a partner for the white-shoe Wall Street defense firm Debevoise and Plimpton, had been named the new head of the SEC.Mary Jo White. “If Barack Obama wanted to send a signal that he’s getting tougher on Wall Street, he sure picked a funny way to do it,” writes Taibbi. (Photo: Alex Wong/Getty Images)

I thought to myself: Couldn’t they have found someone who wasn’t a key figure in one of the most notorious scandals to hit the SEC in the past two decades? And couldn’t they have found someone who isn’t a perfect symbol of the revolving-door culture under which regulators go soft on suspected Wall Street criminals, knowing they have million-dollar jobs waiting for them at hotshot defense firms as long as they play nice with the banks while still in office?

I’ll leave it to others to chronicle the other highlights and lowlights of Mary Jo White’s career, and focus only on the one incident I know very well: her role in the squelching of then-SEC investigator Gary Aguirre’s investigation into an insider trading incident involving future Morgan Stanley CEO John Mack. While representing Morgan Stanley at Debevoise and Plimpton, White played a key role in this inexcusable episode.

As I explained a few years ago in my story, “Why Isn’t Wall Street in Jail?”: The attorney Aguirre joined the SEC in 2004, and two days into his job was asked to look into reports of suspicious trading activity involving a hedge fund called Pequot Capital, and specifically its megastar trader, Art Samberg. Samberg had made suspiciously prescient trades ahead of the acquisition of a firm called Heller Financial by General Electric, pocketing about $18 million in a period of weeks by buying up Heller shares before the merger, among other things.

“It was as if Art Samberg woke up one morning and a voice from the heavens told him to start buying Heller,” Aguirre recalled. “And he wasn’t just buying shares — there were some days when he was trying to buy three times as many shares as were being traded that day.”

Aguirre did some digging and found that Samberg had been in contact with his old friend John Mack before making those trades. Mack had just stepped down as president of Morgan Stanley and had just flown to Switzerland, where he’d interviewed for a top job at Credit Suisse First Boston, the company that happened to be the investment banker for . . . Heller Financial.

Now, Mack had been on Samberg’s case to cut him in on a deal involving a spinoff of Lucent. “Mack is busting my chops” to let him in on the Lucent deal, Samberg told a co-worker.

So when Mack returned from Switzerland, he called Samberg. Samberg, having done no other research on Heller Financial, suddenly decided to buy every Heller share in sight. Then he cut Mack into the Lucent deal, a favor that was worth $10 million to Mack.

Aguirre thought there was clear reason to investigate the matter further and pressed the SEC for permission to interview Mack. Not arrest the man, mind you, or hand him over to the CIA for rendition to Egypt, but merely to interview the guy. He was denied, his boss telling him that Mack had “powerful political connections” (Mack was a fundraising Ranger for President Bush).

But that wasn’t all. Morgan Stanley, which by then was thinking of bringing Mack back as CEO, started trying to backdoor Aguirre and scuttle his investigation by going over his head. Who was doing that exactly? Mary Jo White. This is from the piece I mentioned, :

It didn’t take long for Morgan Stanley to work its way up the SEC chain of command. Within three days, another of the firm’s lawyers, Mary Jo White, was on the phone with the SEC’s director of enforcement. In a shocking move that was later singled out by Senate investigators, the director actually appeared to reassure White, dismissing the case against Mack as “smoke” rather than “fire.” White, incidentally, was herself the former U.S. attorney of the Southern District of New York – one of the top cops on Wall Street . . .

Aguirre didn’t stand a chance. A month after he complained to his supervisors that he was being blocked from interviewing Mack, he was summarily fired, without notice. The case against Mack was immediately dropped: all depositions canceled, no further subpoenas issued. “It all happened so fast, I needed a seat belt,” recalls Aguirre, who had just received a stellar performance review from his bosses. The SEC eventually paid Aguirre a settlement of $755,000 for wrongful dismissal.

It got worse. Not only did the SEC ultimately delay the interview of Mack until after the statute of limitations had expired, and not only did the agency demand an investigation into possible alternative sources for Samberg’s tip (what Aguirre jokes was like “O.J.’s search for the real killers”), but the SEC official who had quashed the Mack investigation, Paul Berger, took a lucrative job working for Morgan Stanley’s law firm, Debevoise and Plimpton, just nine months after Aguirre was fired.

It later came out that Berger had expressed interest in working for the firm during the exact time that Aguirre was being dismissed and the Mack investigation was being quashed. A Senate investigation later uncovered an email to Berger from another SEC official, Lawrence West, who was also interviewing with Debevoise and Plimpton at the time. This is from the Senate report on the Aguirre affair:

The e-mail was dated September 8, 2005 and addressed to Paul Berger with the subject line, “Debevoise.” The body of the message read, “Mary Jo [White] just called. I mentioned your interest.”

So Berger was passing notes in class to Mary Jo White about wanting to work for Morgan Stanley’s law firm while he was in the middle of quashing an investigation into a major insider trading case involving the C.E.O. of the bank. After the case dies, Berger later gets the multimillion-dollar posting and the circle is closed.

This whole episode highlights everything that’s wrong with modern Wall Street. First of all, everybody’s buddies with each other — cops and robbers, no adversarial system at all. As Bill Murray would say, it’s dogs and cats, living together.

Here, a line investigator gets a good lead, it’s quickly taken out of his hands and the whole thing is negotiated at 50,000 feet by friends and former co-workers of the top regulators now working at hotshot firms.

If Barack Obama wanted to send a signal that he’s getting tougher on Wall Street, he sure picked a funny way to do it, nominating the woman who helped John Mack get off on the slam-dunkiest insider trading case ever to cross an SEC investigator’s desk.

When I contacted Gary today, his take on it was simple. “Obama is not going to clean up financial corruption,” he said, “by pinning a sheriff’s badge on Wall Street’s protector-in-chief.”

© 2013 Rolling Stone

Bahraini forces attack anti-regime demo

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Bahraini troops fire tear gas at protesters. (File Photo)

Saudi-backed Bahraini forces have fire tear gas to disperse anti-regime demonstrators, who took to the streets in the capital, Manama, in defiance of a regime ban on protests.

Many protesters were also arrested for taking part in the anti-regime rally in the traditional market area of Manama on Friday. There were no immediate reports of casualties.

Scores of Bahrainis, including children, have died due to asphyxia after inhaling poisonous tear gas fired by Bahraini forces.

Last year, Amnesty International warned about the Bahraini regime’s misuse of tear gas against protesters and has called for an investigation into the tear gas-related deaths.

Bahrainis have been staging demonstrations since mid-February 2011, demanding political reform and a constitutional monarchy, a demand that later changed to an outright call for the ouster of the ruling Al Khalifa family following its brutal crackdown on popular protests.

Scores have been killed, many of them under torture while in custody, and thousands more detained since the popular uprising in Bahrain began.

Protesters say they will continue holding anti-regime demonstrations until their demand for the establishment of a democratically-elected government and an end to rights violations are met.

HM/JR

Lib Dem MP To Be Dragged In Front Of Chief Whip Over Holocaust Comments

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David Ward is to be dragged before the Liberal Democrat chief whip next week following a backlash over his comments likening the holocaust to the current atrocities carried out by Israel in Palestine.

A Liberal Democrat spokesman said on Friday evening: “This is a matter we take extremely seriously. The Liberal Democrats deeply regret and condemn the statement issued by David Ward and his use of language which is unacceptable.”

Criticism also came from Ward’s party colleague, the MP for Cambridge Julian Huppert, who wrote in a blog: “There are particular problems when discussing Israel and Palestine. There are particular sensitivities – especially when people conflate Israel’s current policies to the opinions of ‘the Jews’.”

julian huppert

Huppert: ‘Wrong to conflate Israel’s current policies to the opinions of ‘the Jews”

On Friday, Ward defended his comments, which were made on his website ahead of Holocaust Memorial Day. The statement honoured “those who died during the Holocaust” but accused “the Jews” in Israel of “inflicting atrocities on Palestinians… on a daily basis”.

But despite angry criticism levelled at the Bradford East MP and the possibility of party disciplinary action, Ward has stood by his comments and insisted it is time to “look at every example of man’s inhumanity to fellow man”.

“I feel strongly about this issue. I keep re-reading what I said because I have heard so many comments about how outrageous this is,” Ward Said.

“I have just returned from my second Holocaust day signing. We have had a big event in Bradford.

“Everybody talks about this awful, awful time we must never forget and always say we must learn lessons.

“Surely that means we must look at every example of man’s inhumanity to fellow man?”

david ward facebook

David Ward is Lib Dem MP for Bradford East

He added: “I’ve been to Gaza and seen for myself what is, in effect, apartheid.

“I think it needs to be discussed.

“When would be a good time, next Tuesday? What about some time next June? What better day?”

On his website, Ward said he had “signed a Book of Commitment in the House of Commons, in doing so pledging his commitment to Holocaust Memorial Day” and describes Auschwitz as “the Nazi concentration and extermination camp which is the site of the largest mass murder in history”.

But he added: “Having visited Auschwitz twice – once with my family and once with local schools – I am saddened that the Jews, who suffered unbelievable levels of persecution during the Holocaust, could within a few years of liberation from the death camps be inflicting atrocities on Palestinians in the new State of Israel and continue to do so on a daily basis in the West Bank and Gaza.”

Lib Dems will take disciplinary action but no decision has yet been taken on what that will be.

Ward said he had spoken to the party’s chief whip Alistair Carmichael on Thursday but said he had not been summonsed to the whips’ office.

But the MP said if he was hauled before Lib Dem enforcers he would set out his case.

“I shall try to explain my position. No doubt the chief whip will explain why he feels what I have done is wrong.”

Victims of the Holocaust and Nazi persecution will be honouring Holocaust Memorial Day on Sunday.

Karen Pollock, chief executive of the Holocaust Educational Trust, said: “I am deeply saddened that at this sombre time, when we remember those who were murdered by the Nazis, Mr Ward has deliberately abused the memory of the Holocaust causing deep pain and offence – these comments are sickening and unacceptable and have no place in British politics.”

Lib Dem MP Defends ‘Outrageous’ Anti-Israel Comments

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A Liberal Democrat MP has defended comments made about Israel’s treatment of Palestinians ahead of Holocaust Memorial Day.

David Ward sparked a backlash after putting a statement on his website “honouring those who died during the Holocaust” but accusing “the Jews” in Israel of “inflicting atrocities on Palestinians… on a daily basis”.

david ward facebook

David Ward is Lib Dem MP for Bradford East

But despite angry criticism levelled at the Bradford East MP and the possibility of party disciplinary action, Ward has stood by his comments and insisted it is time to “look at every example of man’s inhumanity to fellow man”.

Mr Ward said: “I feel strongly about this issue. I keep re-reading what I said because I have heard so many comments about how outrageous this is.

“I have just returned from my second Holocaust day signing. We have had a big event in Bradford.

“Everybody talks about this awful, awful time we must never forget and always say we must learn lessons.

“Surely that means we must look at every example of man’s inhumanity to fellow man?”

He added: “I’ve been to Gaza and seen for myself what is, in effect, apartheid.

“I think it needs to be discussed.

“When would be a good time, next Tuesday? What about some time next June? What better day?”

On his website, Mr Ward said he had “signed a Book of Commitment in the House of Commons, in doing so pledging his commitment to Holocaust Memorial Day” and describes Auschwitz as “the Nazi concentration and extermination camp which is the site of the largest mass murder in history”.

But he added: “Having visited Auschwitz twice – once with my family and once with local schools – I am saddened that the Jews, who suffered unbelievable levels of persecution during the Holocaust, could within a few years of liberation from the death camps be inflicting atrocities on Palestinians in the new State of Israel and continue to do so on a daily basis in the West Bank and Gaza.”

Lib Dems will take disciplinary action but no decision has yet been taken on what that will be.

Mr Ward said he had spoken to the party’s chief whip Alistair Carmichael on Thursday but said he had not been summonsed to the whips’ office.

But the MP said if he was hauled before Lib Dem enforcers he would set out his case.

“I shall try to explain my position. No doubt the chief whip will explain why he feels what I have done is wrong.”

Victims of the Holocaust and Nazi persecution will be honouring Holocaust Memorial Day on Sunday.

Karen Pollock, chief executive of the Holocaust Educational Trust, said: “I am deeply saddened that at this sombre time, when we remember those who were murdered by the Nazis, Mr Ward has deliberately abused the memory of the Holocaust causing deep pain and offence – these comments are sickening and unacceptable and have no place in British politics.”

A Liberal Democrat spokesman said: “This is a matter we take extremely seriously. The Liberal Democrats deeply regret and condemn the statement issued by David Ward and his use of language which is unacceptable.”

Finally, the Republicans Are Afraid

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For anyone who has lived through the past several decades of Republican bullying — from Richard Nixon’s anything-goes politics through Karl Rove’s dreams of a “permanent Republican majority” — it had to be startling to hear House Speaker John Boehner complaining that President Barack Obama’s goal was “to annihilate” the GOP.

During a private luncheon of the Republican Ripon Society on Tuesday, Boehner cited Obama’s progressive agenda as outlined in his Second Inaugural Address as representing an existential threat to the GOP.

“It’s pretty clear to me that he knows he can’t do any of that as long as the House is controlled by Republicans,” Boehner said. “So we’re expecting over the next 22 months to be the focus of this administration as they attempt to annihilate the Republican Party.” The Ohio Republican also claimed that it was Obama’s goal “to just shove us into the dustbin of history.”

Of course, Boehner may be wildly exaggerating the Republican plight to shock the party out of its funk, raise more money, and get right-wing activists back to the barricades. Still, his comments marked a remarkable reversal of fortune, like the playground bully getting his nose bloodied and running to the teacher in tears.

Even if hyped from political effect, Boehner’s lament also might force some progressives to rethink their negative views about President Obama. If indeed Obama has gotten the upper hand on America’s swaggering Right, then he might not be the political wimp that many on the Left have pegged him to be.

Without doubt, America’s political landscape has shifted from what it was just eight years ago when President George W. Bush was talking about using his political capital to privatize Social Security and Bush’s political guru, Karl Rove, was contemplating an enduring Republican control of all three branches of the U.S. government.

As part of that Zeitgeist of 2005, as Bush entered his second term, right-wing activist Grover Norquist joked about keeping the Democrats around as neutered farm animals. The president of Americans for Tax Reform — most famous for getting Republicans to pledge never to raise taxes — told the Washington Post that congressional Democrats should grow accustomed to having no power and no reproductive ability.

“Once the minority of House and Senate are comfortable in their minority status, they will have no problem socializing with the Republicans,” Norquist said. “Any farmer will tell you that certain animals run around and are unpleasant. But when they’ve been ‘fixed,’ then they are happy and sedate. They are contented and cheerful.”

How We Got There

That moment of right-wing arrogance represented a culmination of decades of hardball Republican politics, a take-no-prisoners style that usually encountered only the softest of responses from the Democrats and progressives.

Arguably the pattern was set in fall 1968 when President Lyndon Johnson learned that GOP presidential nominee Nixon was sabotaging the Vietnam peace talks to ensure his victory over Vice President Hubert Humphrey — but Johnson stayed silent about what he called Nixon’s “treason” out of concern that its exposure would not be “good for the country.” [See Robert Parry’s America’s Stolen Narrative.]

Nixon’s success in 1968 — and the Democratic silence — contributed to his decision several years later to create an extra-legal intelligence unit to spy on and undermine the Democrats heading into Election 1972. Finally, Nixon’s political chicanery undid him when his team of burglars was arrested inside the Democratic National Committee in the Watergate building. The resulting scandal led to his resignation in 1974.

But the Republican response to Watergate wasn’t to mend the party’s ways but rather to learn how to protect against ever again being held accountable. That reality became the political back story of the next three decades, as the Right built up a fearsome media apparatus and deployed well-funded operatives to shield Republicans and to discredit anyone who presented a threat, whether untamed Democrats, nosy reporters or average citizens.

This Right-Wing Machine showed off its value during the 1980s and early 1990s when President Ronald Reagan and Vice President George H.W. Bush were caught up in the Iran-Contra national security scandal but succeeded in skating away with only minimal political damage. Instead of Reagan and Bush being held accountable for their crimes, far worse damage was inflicted on the careers of investigators, journalists and witnesses who tried to expose the wrongdoing.

Within this political/media framework, when Democrats did win elections, Republicans immediately demeaned them as illegitimate interlopers. For instance, Bill Clinton’s electoral victory in 1992 was an opportunity for the Right-Wing Machine to demonstrate that it could play offense as well as defense, tying up Clinton’s presidency endlessly in trivial “scandals” and setting the stage for the GOP congressional comeback in 1994.

Over those decades, the Republicans behaved as if national power was their birthright. In Election 2000, they saw nothing wrong with aggressively disrupting the recount in Florida, both with rioters on the ground and partisan justices on the U.S. Supreme Court. It didn’t matter that Vice President Al Gore had won the nation’s popular vote and would have carried Florida if all legal ballots were counted. What mattered was putting a Republican in the White House by whatever means necessary. [For details, see Neck Deep.]

The Republican Apex

After the 9/11 attacks, even as Democrats set aside partisan concerns to support President George W. Bush’s response to the crisis, Bush and the Republicans painted the Democrats as “soft on terror” and unpatriotic. The GOP did whatever it took to expand and solidify power.

In 2004, the Republicans and the Right went so far as to portray Democratic presidential nominee John Kerry as a fake Vietnam War hero. GOP activists even mocked his war wounds by passing out “Purple Heart Band-Aids” at the Republican National Convention.

Then, after Bush rode his post-9/11 reputation as a “war president” to a second term, Republican operatives like Rove and Norquist saw their moment for making their political power permanent, in effect turning the United States into a one-party state with the Democrats kept around for the necessary cosmetics of a “democracy.” The GOP would use its money, its media and its control of the judicial process to make successful electoral challenges unthinkable.

But 2005 instead turned out to be the GOP’s high-water mark, a time of premature celebration, the last moment of sunlight before the arrival of darkening clouds, or in this case, the American people’s realization that the Right’s anti-government extremism — mixed with the neocons’ imperialist wars — was a recipe for disaster.

Bush’s inept handling of Hurricane Katrina and the devastation that it inflicted along the Gulf of Mexico showed the downside of a hollowed-out federal government. And the bloody stalemate in Iraq revealed the dangers of ill-conceived military adventures.

Bush’s tax-cutting and deregulation produced other harmful consequences, including soaring federal deficits, rising income inequality, an eroding middle class and an unstable “bubble” economy that finally burst in 2008. The electorate’s recognition of Bush’s failures led to Democratic victories, including Obama’s election as President.

Yet, despite the extraordinary national crisis that Bush left behind — millions of Americans losing their jobs and their homes as well as two unfinished wars — the Republicans refused to play the role of “loyal opposition.” They pulled out their successful playbook from the early Clinton years and confronted Obama with unrelenting hostility.

Once again, the obstructionist strategy worked at least in a narrow political sense. By mid-2009, Glenn Beck, Rush Limbaugh and other loud voices from the muscular Right-Wing Machine had whipped up a passionate Tea Party opposition to Obama, including crypto-racist allegations that the President was born in Kenya, despite the evidence of birth records in Hawaii.

Meanwhile, America’s weak and disorganized Left mostly complained that Obama hadn’t delivered on everything that he should have. For his part, Obama squandered valuable time reaching out for a bipartisanship that never came, and the mainstream news media faulted him anyway for failing to achieve that bipartisanship.

Getting Obama

So, the Right surged to electoral victories in 2010. Republicans reclaimed the House and seized control of many state governments. Senior Republicans, including Senate Minority Leader Mitch McConnell, openly declared that their top priority would be to ensure Obama’s failure as President and his defeat in 2012. Part of the Republican strategy to reclaim national power was to disenfranchise blacks and other minorities by creating obstacle courses of legal impediments to voting, such as onerous voter ID laws and reduced hours.

Many top GOP operatives, including Rove, remained confident of success as late as Election Night 2012, expecting Mitt Romney to unseat Barack Obama. However, Democrats blocked many of the voter-suppression schemes and Obama marshaled an unprecedented coalition of African-Americans, Hispanics, Asian-Americans, women and the young to decisively defeat Romney.

In Congress, Democrats strengthened their control of the Senate and narrowed the Republican majority in the House. That GOP majority was retained only because Republicans had gerrymandered districts after the 2010 elections enabling the party to keep most seats despite losing the popular vote nationally.

During his Second Inaugural Address, Obama also made clear that he had finally forsaken the “inside game” of trying to sweet talk the Republicans into cooperation or negotiating from positions of weakness. Instead, Obama delivered a strong defense of American progressivism. He tied that tradition to the ideals of the Framers who wrote the Constitution with the intent of creating a vibrant Republic, a government of, by and for the people.

Obama’s speech and its warm reception apparently unnerved Speaker Boehner who suddenly saw something akin to an existential threat to the GOP. There were the painful election results, the nation’s shifting demographics, the newly assertive President, and hundreds of thousands of Americans again packing the Mall to celebrate Obama’s victory.

After his Inaugural Address as he stepped back into the U.S. Capitol, President Obama paused, turned around and looked back at the throngs of people waving American flags as far as the eye could see. He said wistfully, “I’m not going to see this again.”

From his seat in the Inaugural reviewing stands, Speaker Boehner saw the same impressive scene, and he may have grasped its implicit message. The large and diverse crowd personified the Obama coalition – and the mortal threat that it represents to traditional American politics, always dominated by white men of means.

Of course, the Republicans still have the Right-Wing Machine churning out propaganda to rally the party’s angry white-male base. Plus, the GOP is coming up with more new plans for minimizing the votes of black and brown people and maximizing the political clout of whites, such as a scheme in several states to apportion presidential electors based on the Republicans’ gerrymandered congressional districts.

But Boehner seems to sense that something fundamental has changed. Perhaps he was playacting a bit when he warned fellow Republicans that Obama hoped to “annihilate” the Republican Party. But — overdramatized or not — Boehner’s alarm suggests that finally it is the Republicans who are afraid.

Hate Eating Corporate Food? Democracy Is the Best Recipe

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Wenonah Hauter discusses her new book “Foodopoly,” a deep dive into our country’s history and our relationships with farmers.

January 25, 2013  |  

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This article was published in partnership with GlobalPossibilities.org.

We may be able to agree that much of our food system is broken, but how we begin to fix it is much harder to understand. Wenonah Hauter, director of Food and Water Watch, takes on this challenge in her new book, Foodopoly: The Battle Over the Future of Food and Farming in America.

Hauter, who grew up and lives on a farm in Virginia, uses Foodopoly to take readers on a deep dive into our country’s history and our relationships with farmers. Through her book, readers learn about farmers as the heart of the Populist movement, whose organization and alliance with labor leaders made them a political threat. She writes about the systems that were put in place to move men off of farms for cheap labor in cities, to lower prices for crops, and to whittle away at the fabric of rural America – for the sake of corporate profit. 

“The food system is in a crisis because of the way that food is produced and the consolidation and organization of the industry itself. Solving it means we must move beyond the focus on consumer choice to examine the corporate, scientific, industrial, and political structures that support an unhealthy system,” she writes in the Introduction. “Combating this is going to take more than personal choice and voting with our forks — it’s going to take old-fashioned political activism. This book aims to show what the problem is and why we must do much more than create food hubs or find more opportunities for farmers to sell directly to consumers. We must address head-on the ‘foodopoly’ — the handful of corporations that control our food system from seeds to dinner plates.”

Hauter sat down with AlterNet to discuss her new book and talk about the contentious issue of subsidies, why solving our democracy issues are paramount to fixing our food system, and the biggest challenges to creating a sustainable and just food system. (You can read the Introduction to the book here.)

Tara Lohan: There’s no doubt we have a big problem with junk food and a lot of the issue comes down to marketing to kids, which you’ve written about in the book in great detail. But it seems like a much larger cultural problem then that.

Wenonah Hauter: I think it’s part of the dysfunction of society as people have forgotten how to cook. We want everyone to enjoy healthy food, not just small segments of society. We have to fix the policy things and then we have to fix the things in society that make it impossible for people to actually cook. That’s why we can’t fix our food system without fixing our democracy. People don’t have time to cook because they work two jobs. They are not paid enough to purchase the healthy ingredients and the food system is not going to solve these problems. We have to have a political system ask why there is an ever increasing stratification and why they allow the media to set the agenda through advertising and the culture that we created today.  

It’s complex. There’s no magic bullet. I’m dealing in Foodopoly with the food policy piece but that’s just a slice of the pie. We also have to do something about these corporations benefitting from really the wrong values around food and the fact that 90% of the food budget of most Americans goes towards processed foods. We need to take away the economic incentive. 

Las Vegas Accused of Engineering Massive Water Grab: Is This the Future of the West? [With Photo Slideshow]

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Climate change is going to make life harder, water scarcer, and decisions about the future tougher.

January 25, 2013  |  

Las Vegas exudes an all-you-can-eat mentality. People walk between casinos carrying giant cups of slushy liquor; advertisements blare from speakers on the streets pitching the best shows, best food and best deals; escalators take you across streets and directly into malls. You spend your time buying something, eating something, or watching something. Either way, it’s consume, consume, consume.

But this hunger is hard to satiate and it takes its toll, revealing the city’s central dichotomy – it is a destination of both the high-brow and the down and out, the high rolling and the thrifty, a megaphone of riches and poverty. And nowhere is this more apparent then in one of Las Vegas’ most contentious relationships – with water. If you walk the Strip, you’ll see gondolas floating on canals of aqua pool water, misters spraying overheated tourists in the hot sun, pirate ships docked in rocky coves, and fountains everywhere you look.

The abundant water is a mirage, although it wasn’t always. Las Vegas got its name, meaning “the meadows,” after Spanish explorers found artesian springs in the area. And long before that, in the Pleistocene, much of Nevada was plunged under the depths of massive Lake Lahontan. There are only vestiges of that great lake left, and the early artesian wells found near Las Vegas have long ago quenched the thirsty, but nevertheless, the thirsty keep on coming.

When groundwater reserves ran low in the 1940s, the region turned to Lake Mead. Today, the Las Vegas area gets 90 percent of its water from the no-longer-very-mighty Colorado River as it is corralled behind Hoover Dam in Lake Mead. And now that’s threatened. A new federal study released in December found that the over-allocated Colorado River will be further stretched by climate change, drought and climbing populations. By 2060, the river will be short of what its dependents in seven U.S. states need by 3.2 million acre-feet a year. (An acre-foot of water is roughly enough for one suburban family per year.)

So what’s a city — or really, its water manager — to do? A smart gambler wouldn’t bet on the Colorado.

Patricia Mulroy is putting her money someplace else – and it’s likely to be a whole lot of money. Mulroy heads up the Southern Nevada Water Authority, an agency responsible for providing water for seven water agencies in and around Las Vegas. How smart her idea is depends on your perspective.

The Second Amendment’s History

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“A majority of Americans tell pollsters that they believe the Second Amendment protects private ownership of guns,” wrote Garry Wills, historian and author of James Madison, in 1995.

What is the basis for this belief and why was Wills focusing on this issue in 1995? Does the sparse language of the Second Amendment actually guarantee an individual right to bear arms? Protect private gun ownership and the right to carry firearms without restriction?

What does “the right of the people to keep and bear Arms” mean in the context of the entire Second Amendment language? In the context of the Constitution? In the context of the historical record? What was the feeling among the constitutional delegates about standing armies? Militias? Indeed, what were the politics of the Constitution and the Bill of Rights?

Is the meaning of the Second Amendment clear? If the “original meaning” of the Constitution is clear and unambiguous, why have we been paying the Supreme Court to interpret it for over 200 years? Why do some express a “majority opinion” and others dissent? Why do we have constitutional scholars?

James Madison was the author of the militia clause in the Constitution and the Second Amendment. What was Madison’s thinking and how do we know it? Are Madison’s words undebatable?

Have all the Supreme Court justices agreed on the interpretation of the Second Amendment? Why did the Court have one interpretation this amendment for almost one hundred years and then seem to reverse course? Was there a consensus on the Court?

What was the purpose of the Second Amendment? Was it to address self defense? To save slavery? To pacify the delegates from the South who were resisting support of the Constitution at the 1787 Convention because of the slavery issue?

No one would deny that slavery played an important role in the early development of the nation, but just how important was it? What do we know about the role slavery played in the Constitutional Convention and how do we know it?

Historian Gordon Wood notes that: “If we are to understand accurately the role of slavery in the making of the Constitution, we have to try to rid ourselves of our knowledge of what happened in the succeeding decades. The founders did not know the future, any more than we do, and most of them at the outset lived with the illusion that slavery in the United States was dying away and would somehow eventually disappear, especially with the ending of the slave trade. Of course, they could not have been more wrong.”

Politics in Philadelphia

What were the politics of the delegates to the Philadelphia convention in that hot summer? Was the Amendment designed to ensure that citizens are armed and ready to fight against their own government should it become tyrannical? Did the Framers consider the possibility of a “tyrannical” new government a priority consideration as they worked to produce a document designed to unify and stabilize thirteen colonies? Does such an idea make sense? What evidence supports the idea that the Framers feared that the new government might become tyrannical?

Were the Framers concerned about individual ownership of firearms or about “security” and “domestic tranquility?” Or, were the Framers concerned about maintaining order and avoiding chaos in the new nation, discouraging threats to its “security,” instability that could discredit the Revolution, and benefit its “enemies” abroad?

Has the belief that the Second Amendment protects private ownership of guns always been so? Or is this belief born of a disposition to believe that the Second Amendment is a “sacred principle” that protects gun ownership? Is this disposition of recent vintage?

Has the Second Amendment been “hijacked”? Have gun advocates intentionally misstated the law, repeating their misstatements and investing heavily in propaganda in order to persuade the public? Persuade the corporate media? Persuade courts?

The Right, the National Rifle Association and the gun lobby and even some on the Left given to romanticizing history have a “boiler plate,” knee-jerk response to the gun control issue – they would have Americans believe that the argument that the Second Amendment guarantees the right of individuals to own firearms is moot. Is that true?

And what about the term liberty? Just what does that word mean? To whom? Why?

“The American Right is fond of putting itself inside the minds of America’s Founders and intuiting what was their ‘original intent’ in writing the U.S. Constitution and its early additions, like the Second Amendment’s ‘right to bear arms,’ ” writes investigative reporter Robert Parry. “But, surely, James Madison and the others weren’t envisioning people with modern weapons mowing down children in a movie theater or a shopping mall or now a kindergarten.”

Abusing the Second Amendment

Historian Garry Wills wrote: “The recent effort to find a new meaning for the Second Amendment comes from the failure of appeals to other sources as a warrant for the omnipresence of guns of all types in private hands. Easy access to all these guns is hard to justify in pragmatic terms, as a matter of social policy. …

“That is why the gun advocates appeal, above pragmatism and common sense, to a supposed sacred right enshrined in a document Americans revere…We must put up with our world-record rates of homicide, suicide, and accidental shootings because, whether we like it or not, the Constitution tells us to. Well, it doesn’t.”

Few Americans know much about U.S. history, or specifically know history in relation to guns and the gun control issue and they do not do their homework – a comprehensive review of the related history.

The American public generally has the reputation for being anti-intellectual, ill acquainted with scholarship and considered to have short memories and even shorter attention span. Indeed, Americans appear to have given up reading altogether.

The result is that millions of Americans have embraced the dangerous — and false — notion that the Framers of the U.S. Constitution incorporated the Second Amendment in the Bill of Rights so an armed population could fight the government that the Framers had just created. This belief is not accidental – it has been deliberately taught, the result not of serious scholarship and study but the result of an agenda.

The gun industry, an interested party of the first order in the individual right interpretation of the Second Amendment, has averaged about $3.5 billion a year in inflation-adjusted terms going back to the mid-1990s. Journalist Lee Fang reports in The Nation magazine: “For every gun or package of ammunition sold at participating stores, a dollar is donated to the NRA.”

Too many Americans, frustrated and confused by a host of issues, and perhaps easily given to irrational fears and paranoia reinforced by a shallow and narrow frame of reference, have willingly embraced the Right’s well-funded propaganda and attempt to re-interpret the Second Amendment and re-write American history. They are all too willing to embrace anti-government hysteria and succumb to manipulation.

As Parry writes: “Today’s American Right is drunk on some very bad history, which is as dangerous as it is false.” The Right has been repeating lies about the Second Amendment and U.S. history for several decades, but as Franklin Delano Roosevelt once said, “Repetition does not transform a lie into the truth.”

Americans are being cheated by a Right that is trying to reduce American history to simplistic, comic-book levels and steal our history right out from under us. (Revisionism can come in “Left” clothing as well.)

Longstanding Precedents

Few Americans know that there are two opposing views of the Second Amendment: the collective right model and the individual model. They are unaware that the first view prevailed for almost one hundred years, that it was not only widely accepted it was uncontroversial.

Professor Robert J. Spitzer discovered in the course of his research for the “2000 Symposium on the Second Amendment” that from the time U.S. law review articles first began to be indexed in 1887 until 1960, all law review articles dealing with the Second Amendment endorsed the collective right model.

The first law review article asserting an individual’s right to own firearms for self-defense (or sport) did not even appear until 1960. Eleven articles discussing the Second Amendment were published during this 73-year period. All endorsed the collective right model.

“If there is such a thing as settled constitutional law,” wrote law professor Carl T. Bogus in 2000, “the Second Amendment may have been its quintessential example.” The United States Supreme Court addressed the Amendment three times in 1876, 1886, and 1939 and on each occasion held that it granted the people a right to bear arms only within the militia. [See United States v. Cruikshank, 92 U.S. 542 (1876); Presser v. Illinois, 116 U.S. 252 (1886);
United States v. Miller, 307 U.S. 174 (1939).]

The Second Amendment was adopted on December 15, 1791, along with the rest of the Bill of Rights. As passed by Congress, it read: “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”

The Right (and those who have bought into their argument) would appear to completely dismiss the first phrase relating to the militia, the phrase that gives the leading, primary meaning of the sentence and to which the second phrase relates. The word “militia” is defined in the Constitution itself:

“The Congress shall have Power . . . To provide for organizing, arming, and disciplining, the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress.” [Article 1, § 8.]

Law professor Carl T. Bogus points out that the founders disagreed about how the militia ought to be organized: For example, “Madison favored a universal militia while [Alexander] Hamilton argued for a select militia. However, they agreed as a constitutional matter to leave this up to Congress; and the Constitution expressly gives Congress the power to organize the militia. Thus, the militia is what Congress decides it is, regardless of whether it differs from an eighteenth-century model. Currently, the militia is indisputably the National Guard because Congress has so decided.”

Twisted Quotes

Historian Wills’s lengthy and scholarly argument in 1995 was not to deny any private right to own and use firearms. He simply maintains that Madison “did not address that question when drafting his amendment.” He suggests that gun advocates lobbied using shoddy scholarship that included quotations that were “truncated, removed from context, twisted, or applied to a different debate from that over the Second Amendment” in order to find “new meaning for the Second Amendment” — in effect, to sell the American public the idea that there is a “sacred right enshrined in a document Americans revere.”

It has been suggested that the basis for the majority opinions of the Court in the 2008 and 2010 cases that provided support for the individual model (in 2008, for the first time) is also based on questionable scholarship and intellectual leaps. It should be noted that in both cases the Court was divided 5-to-4. [See District of Columbia v. Heller, 554 U.S. 570 (2008); McDonald v. Chicago, 561 U.S. 3025 (2010).]

Reporter Parry emphasizes: “The reality was that the Framers wrote the Constitution and added the Second Amendment with the goal of creating a strong central government with a citizens-based military force capable of putting down insurrections, not to enable or encourage uprisings. The key Framers, after all, were mostly men of means with a huge stake in an orderly society, the likes of George Washington and James Madison.

“The men who gathered in Philadelphia in 1787 weren’t precursors to France’s Robespierre or Russia’s Leon Trotsky, believers in perpetual revolutions. In fact, their work on the Constitution was influenced by the experience of Shays’ Rebellion in western Massachusetts in 1786, a populist uprising that the weak federal government, under the Articles of Confederation, lacked an army to defeat.”

Law professor Geoffrey R. Stone strongly suggests that: “It is time for opponents of gun control to stop mindlessly shouting ‘The Second Amendment!!’ as if that ends the discussion. It does not. Just as there is no First Amendment right to falsely yell fire in a crowded theatre, there is no Second Amendment right to carry an AK-47 there. And that is only the beginning of what the Second Amendment does not guarantee.”

We citizens don’t have to become constitutional lawyers or scholars on the Second Amendment. We do need to take the time to do some basic homework—and not be intimidated by right-wing bullies and their deep-pocketed propaganda campaigns. We need to reach a comfort level as to what is known, what is not known, what is debatable, and what is a misrepresentation or outright lie.

The Right has given us nothing but destruction and death. Irrational right-wing extremists and their so-called “conservatism” have transformed the United States into a nightmare.

They have given us not simply extraordinarily bad manners but conscience-less coarseness; distracted us with nihilistic obstructionism that prevents our being able to effectively solve major national problems; made us look like backward, ignorant, unworthy and reckless fools before the entire world; militarized our culture with an authoritarianism that would echo the Third Reich; robbed us of our joy, our peace of mind, our dignity and our self-respect; de-civilized us with fear, violence and ugliness; “drenched us in Bloodshed;” indoctrinated citizens with misrepresentations, distortions, and blatant lies; attempted to make superstition respectable and madness the norm; polarized our national community; and they want to steal our past, our American history as well.
Enough.

Alternative Reality

I am on the side of the collective right argument, the argument that the Second Amendment does not protect individual gun ownership, an argument supported by credible real scholarship by real scholars that supports thecollective right argument.

I emphasize the word real because it is clear that too many Americans live in an alternative reality that confuses belief with facts, and are unable to distinguish scholarship from fanciful propaganda and scholars from lobbyists.

We may even have members of the U.S. Supreme Court who have succumbed to what is nothing less than a National Rifle Association (NRA) and gun lobby sales pitch that fits their right-wing, corporatist, authoritarian mentality.

I believe too many of the American public, politicians and mainstream media have been hoodwinked by the radical Right, the billion-dollar gun industry and the NRA. Yes, we are over 300 million individuals, but we are individuals who do not live in isolation but share a society.

On a personal note: I know what it is like to face a 22 revolver in the hands of a 9-year-old boy (reputed to have been disturbed) just two inches off my forehead (in the U.S. Virgin Islands in the early ‘70s). Believe me, I remember what the color “gun metal” looks like and know the sensation of feeling that all the blood has left my body. I want to see strong, sensible gun regulations.

I want the country of my birth to regain its sanity.

How the NRA Undermined Congress’ Last Push for Gun Control

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The NRA has already begun to lobby on Capitol Hill to counter the administration’s effort.

To get a sense of what the NRA might do, it’s helpful to look at how it scored a victory during the last major federal initiative to tighten gun control.

After a Virginia Tech student killed 32 students and faculty in April 2007, the Bush administration proposed legislation that would require all states to share the names of residents involuntarily committed to mental health facilities. The information would be provided to a Federal Bureau of Investigation database.

The idea, in part, was to help gun dealers get important information about whether potential customers were mentally ill.

In order to get the support of the NRA, Congress agreed to two concessions that had long been on the agenda of gun rights advocates – concessions that later proved to hamstring the database.

The NRA wanted the government to change the way it deemed someone “mentally defective,” excluding people, for example, who were no longer under any psychiatric supervision or monitoring. The group also pushed for a way for the mentally ill to regain gun rights if they could prove in court that they’d been rehabilitated.

The NRA found allies on both sides of the aisle to champion the concessions.

Rep. John Dingell, D-Mich., reportedly pushed the provisions, ultimately with the support of the bill’s lead sponsor, Rep. Carolyn McCarthy, D-N.Y. (McCarthy’s husband was killed and her son wounded in a 1993 shooting on the Long Island Railroad.)

The NRA agreed to the support the bill, in exchange for provisions pushing states to create gun rights restoration programs.

Here’s how it worked. It would cost money for states to share their data: A state agency would have to monitor the courts, collect the names of people who had been institutionalized, and then send that information to the FBI on a regular basis.

So, to help pay for data-sharing Congress created $375 million in annual federal grants and incentives. But to be eligible for the federal money, the states would have to set-up a gun restoration program approved by the Justice Department. No gun rights restoration program, no money to help pay for sharing data.

A spokesman for Dingell’s office did not respond to calls for comment on this story. A McCarthy spokesman, Shams Tarek, said the congresswoman is now working on new legislation to “provide more incentives and stiffen penalties for states to put names in the database.”

“We definitely think there’s a lot of room for improvement,” said Tarek.

The NRA supported Dingell and McCarthy’s version of the bill, but the group won further concessions when the legislation reached the Senate.

Sen. Tom Coburn, R-Okla., who once joked he’d like to bring a gun with him to the Senate floor, blocked the legislation, citing concerns about privacy and spending.

He negotiated language that, among other things, would allow a person’s application for gun restoration rights to be granted automatically if an agency didn’t respond within 365 days of the application and allowed people to have their attorney’s fees reimbursed if they were forced to go to court to restore their rights.

The final bill was sent to President Bush for his signature in January 2008.

The NRA praised Coburn and released a statement calling the law a victory for gun owners: “After months of careful negotiation, pro-gun legislation was passed through Congress today.” (The NRA didn’t respond to calls for comment.)

In an email, a Coburn spokesman told ProPublica that the senator “does not operate as an agent of the NRA when considering legislation regarding gun rights” and pointed to a recent statement on the president’s gun proposals. (In the statement, Coburn said he supports improving the mental health database, but said overall, “we first must ensure our constitutional rights and individual liberties.”)

Since the bill’s passage, two analyses have shown that the NICS database has significant gaps, partly because of the way the NRA managed to tweak the legislation. Many states aren’t sharing all of their mental health records.

A July 2012 report by the Government Accountability Office, the investigative arm of Congress, found that while the overall number of records increased exponentially since the law passed, the rise is largely due to cooperation from just 12 states.

The non-profit group Mayors Against Illegal Guns also released a report in 2011 showing that many states have failed to fulfill their obligations to report data on the mentally ill to the federal government. While Virginia and a few others have disclosed tens of thousands of records, 23 others and the District of Columbia reported fewer than 100 records. Seventeen states reported fewer than 10 records and four submitted no data at all.

“Millions of records identifying seriously mentally ill people and drug abusers as prohibited purchasers are missing from the federal background check database because of lax reporting by state agencies,” the report said.

According to the report, the reasons for such uneven compliance vary by state. Some states don’t turn over data because their privacy laws prevent them from doing so. Some states have a different interpretation on what kind of data needs to be provided, or what, exactly, constitutes “mentally ill” or “involuntarily committed.”

Still others simply can’t afford the expense of gleaning the data from the courts, providing it to the relevant state agency and then passing it on to the federal government.

The NRA-backed language creates problems for these states.

As a New York Times investigation found, many states haven’t qualified for federal funding to share their data because they haven’t established gun rights restoration programs.

In 2012, only 12 states received federal grants, according to the Bureau of Justice Statistics.

A Coburn spokesman pointed out that some states have had trouble setting up restoration programs because gun control advocates in those states have protested them.

While mental health data has remained sparse, some states have made it easier for the mentally ill to restore their gun rights. As the Times noted, in Virginia some people have regained rights to guns by simply writing a letter to the state. Other Virginians got their rights back just weeks or months after being hospitalized for psychiatric care.

It’s difficult to know just how many people in Virginia have had their gun rights restored because no agency is responsible for keeping track.

Despite the limitations of the mental health database, some gun control advocates still see it as better than nothing.

“The fact that so many states have been able to get so many records into the database does demonstrate a willingness on the part of certain groups to work on this issue and that’s a good sign. The others really need to step up,” said Lindsay Nichols a staff attorney at the San Francisco-based Law Center to Prevent Gun Violence.

The group, then known as the Legal Community Against Violence, was one of several gun control organizations that opposed the legislation when it was first signed into law.

Nichols is optimistic that the NRA won’t succeed in commandeering the gun control debate the way the group did after Virginia Tech.

“I think there’s new awareness among the public and legislators that we need to take this issue seriously and it’s not an issue where the public is going to accept political wrangling.”

‘Power struggle to crush Syria militants’

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A militant fires an RPG at Syrian Army forces during heavy clashes in a neighborhood of central Aleppo. (File photo)

An Iranian lawmaker says the Syrian opposition members have become engaged in a “power struggle,” which will be the key to their undoing.

“There are many personal and political disagreements among various Syrian opposition groups to assume key positions and the leadership,” Seyyed Hossein Naqavi-Hosseini said on Friday.

The spokesman for the Majlis National Security and Foreign Policy Committee added that the opposition in Syria has failed to establish a transitional government in the country due to internal disputes among its members.

Naqavi-Hosseini noted that there are two major reasons behind the failure of the militants and opposition groups in Syria.

“The first cause for the militants’ failure is that [they are] a tool in the hands of Western and Arab powers; therefore, they do not have any popularity and legitimacy among the Syrian nation.”

He cited the militants’ use of weapons, assassination and bombing for resolving the crisis in the Arab state as another reason for their failure.

“This is while the Syrian people seek to make decisions for the future of their country by holding elections in a peaceful and democratic climate,” Naqavi-Hosseini added.

Syria has been experiencing unrest since March 2011. Many people, including large numbers of army and security personnel, have been killed in the violence.

The Syrian government says the chaos is being orchestrated from outside the country, and that a very large number of the militants operating in the country are foreign nationals.

TNP/HMV/SS

Arab Elites Defend Economic Models that Gave Rise to Arab Spring, but Made Them Rich

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Context: As yet there are no context links for this item.

Bio

Raja Khalidi has spent most of his professional career with UNCTAD, where he is currently Chief, Office of the Director, Division on Globalization and Development Strategies. He holds a B.A. from Oxford University and M.Sc. from University of London SOAS. From 2000-2006, Mr. Khalidi was Coordinator of UNCTAD’s Programme of Assistance to the Palestinian people, which combines the analytical and operational expertise of the UNCTAD secretariat in an integrated manner. His assignments at UNCTAD have also dealt with Debt and Development Finance, the global economic crisis and institutional development and strategic management reform. His own publications include a book on the dynamics of Arab regional economic development in Israel and contributions on Palestinian economic development issues to the Palestinian Encyclopedia, the Journal of Palestine Studies, edited volumes, as well as Jadaliya online and Palestinian, Israeli and international media. The views expressed here are his own and do not necessarily reflect those of the United Nations.

Transcript

PAUL JAY, SENIOR EDITOR, TRNN: Welcome back to The Real News Network. I’m Paul Jay in Baltimore.

We’re continuing our interview with Raja Khalidi. He’s at the UNCTAD in Geneva. That’s the UN Conference on Trade and Development, where he’s currently chief, Office of the Director, Division on Globalization and Development Strategies. He speaks here today with his own opinions, which are not necessarily those of UNCTAD.Thanks for joining us again.RAJA KHALIDI, SENIOR ECONOMIST, UNCTAD, GENEVA: Nice to be back.JAY: So let’s just continue our discussion. As things unfold in Palestine and in the other countries in the Middle East–we can start with Palestine–there’s a tremendous role being played by Qatar and Saudi Arabia in virtually all of the countries that had an Arab Spring. They’re very involved in Syria, arming the opposition. They’re doing this in cooperation with the United States. There also seems to be–Turkey seems to be part of this plan, at least as far as Syria goes. And when you look at what kind of Middle East they have in mind, I guess it’s a reflection of what kind of countries Qatar and Saudi Arabia are, to a large extent, although some of these countries are going to have elections, and they’re hoping the Muslim Brotherhood comes to power in these countries through the electoral process. But what kind of economies do they want to build?KHALIDI: Well, in the region, we haven’t really seen from these new governments any significant change in their posture towards their economic–towards how they’re going to go about resolving the economic problems that in some cases I suppose you could say brought them to power. In Tunis, perhaps less so than in Egypt (it’s been more pronounced in Egypt), negotiations of the IMF led to a renewal of–we’re not sure of all the details, but the renewal of some of the same conditionalities that perhaps in some–in our view, at least, led to or contributed to the buildup of the socioeconomic pressures that contributed to the whole uprisings of last year. We haven’t seen governments yet adopt a different posture in terms of their dealings with the international community. And of course they want–you know, it’s reasonable that these transitional situations, you don’t want to scare off investors, you want to maintain whatever trade you’ve got set up as a result of, you know, many years of liberalization in all of these countries. So I don’t think that there’s, however, any realization yet among policymakers. I think there’s a lot of discussion in the media among experts, even among international organizations, of the extent to which different policies are required, different, in some cases significantly, to those that characterize the regimes of the past 20 years [incompr.] But I don’t see that trickling through to–seeping–you know, penetrating yet into any of the policymaking that we’ve seen among Arab governments in the last two years.JAY: I mean, the way it appears to me is you have Qatar and Saudi Arabia, together with Turkey, but especially in–other than Syria, it seems, mostly Qatar and Saudi Arabia, and then to a large extent Qatar, managing these Arab Spring revolutions from Libya to Egypt in a way that brings to power forces that will essentially carry on kind of neoliberal economic policy, so privatization and open the markets to foreign capital and such, except instead of being done, for example, in Egypt under the dictatorship of Mubarak, it’s now going to be done with some kind of democratic form, but with the face–the face of it will be the Muslim Brotherhood, and perhaps not only in Egypt.KHALIDI: Look, I don’t think the alliances that have been built so far between Qatar and Saudi Arabia, the Gulf countries in general, and the new Muslim brethren dominated governments of Tunisia and Egypt are really predicated so much on the survival of an economic model. I think the survival and the endurance of the economic model comes from much deeper causes, in a sense.I mean, it’s partly because you don’t have policymakers in place who know anything else. This is the way that they’ve always dealt with the world, and they haven’t yet internalized the extent to which the demands that continue to come up–and you’ve seen it even in the constitutional–in the current showdown between–in Egypt.The economic and social demands continue to be, you know, increasingly more urgently voiced in some cases, because, you know, nothing has been done to even indicate that a different approach is going to be taken to dealing with them. And so I think there’s that. You know, I think the problem–what I’m trying to say is that the political alliances that you’ve mentioned are to do with other things. They’re to do with ideology.JAY: Do you not think this is partly about the Arab Spring kind of let loose a lot of democratic forces whose demands were not just about political democracy but were also about more economic democracy, and wanted to question, you know, how is stuff owned and how is the wealth of the country distributed? And do they not want to keep a lid on that?KHALIDI: I don’t think they’re worried about that. I think they’re just worried about losing power, to be honest. I’m talking about now the regimes who have yet to be challenged, the monarchies in particular. That’s what their main concern is, and keeping a lid on the region as a whole. I don’t think that when they’ve, you know, promoted, be it in Syria or in Egypt or Tunisia, political or other forces allied to them, it’s been so much because they’re assured that these people continue to run the same economic policies. I think the economic policies come along with other things. In Arab politics, the economics, you know, economic policies, of course it’s important, and of course they want to maintain the models that have made them, you know, a lot of elites in the region very rich, you know, through illegitimate as well as other–you know, even sometimes sanction forms of pillaging, if you wish, of national resources. There’s no doubt about that, that there are a lot of forces that want to keep that system in place and that know that this is being challenged widely.On the other hand, I think that, you know, at least in–money–in Saudi Arabia, at least, there was a major–and in some of the other Gulf countries, as the first Arab Spring, real–the original Arab Spring, if you want to call it that, erupted, by the summer of last year, of 2011, they had handed out some, I don’t know, you know, at least $50 billion in extra payments, you know, transfer payments to households.So, you know, in a situation where you have no organized–either at the national level in many of these countries or regionally, not only no organized opposition, but there’s no real leadership for the Arab Spring movements, if you wish. There are different contenders to the thrones or to that title, but in general this is still a very disparate movement, and each country has very different components, you know, constituents, and demands. So, you know, I don’t think they need to worry too much about those demands turning into new pressure. I think the issues that are being–you know, that are being hotly debated are, unfortunately, to do with sectarianism, that sort of an–ethnic differences, and obviously, you know, political, constitutional liberties and all that as well. Those are determining the agendas of the political alliances of the region. The other thing I wanted to say, though, was that, you know, from the PLO’s–you know, the perspective of the history of the PLO as a revolutionary movement in the region, which, you know, maybe it has–it is no longer, but it certainly was in the ’60s and the ’70s, into the ’80s, one could say, you know, the PLO spent many years fending off Arab governments’ intervention, to the extent that they actually officialized it by having an executive committee that had factions, you know, supported by Iraq, by Syria, etc. So it’s nothing new to revolutionary movements in the region for governments, you know, regimes who, even if they’re–these are not–you know, in the Palestinian case, it wasn’t a revolutionary movement against the Arab regimes, but of course the Arab regimes, certainly at the time and for many years, wanted to make sure it didn’t become one. So it was better for them to rally around and, one could argue, at different times divert, etc., the PLO’s course that it would have–. And as a result of which, the issue of the independence of the Palestinian decision, which is something that Yasser Arafat, you know, was famous for, always reaffirming as a way of implying, I’m not subservient to any of the governments, etc., you know, it’s something that even Mashal the other day, the head of Hamas in Gaza, reiterated.So what I wanted to make–the analogy, I think, that is pertinent is that the Arab uprisings, as I mentioned, without leaders clearly identified, without, you know, organization even to represent them in any way, are even at greater risk of intervention. And it’s only natural that the governments of the region will want to suppress, divert, hijack, you know, ride the wave, whatever. And we’re seeing it in some cases. But we’re also seeing it continue in Egypt. And I think even in the Palestinian case we’re seeing a continued popular, broad social base movement that is continuing to insist on the things that we’ve heard even, you know, from Tahrir in the very first months of this whole episode of the last two years.JAY: Okay. In the next segment of our interview we’re going to talk more about Palestine. Please join us for the next segment of our interview on The Real News Network.

End

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.


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Egyptian protesters torch Muslim Brotherhood HQ in Ismailia

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Egyptian protesters torch Muslim Brotherhood HQ in Ismailia

Egyptian protesters torch Muslim Brotherhood HQ in Ismailia

Offices used by the Muslim Brotherhood’s political party were set ablaze by protesters in the Egyptian Suez Canal city of Ismailia on Friday, witnesses said.

A group of youths reportedly broke into and ransacked the offices used by the Freedom and Justice Party — the Brotherhood’s political arm — before setting it on fire.

DETAILS TO FOLLOW

S. Ossetian political prisoners remain in Georgian jails despite amnesty

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RIA Novosti / Alexey Kudenko

RIA Novosti / Alexey Kudenko

While Georgia’s recently-elected government claims new political trends in the country, South Ossetia sees no real steps by Tbilisi to resolve humanitarian problems in the region.

According to South Ossetian President Leonid Tibilov, the republic’s citizens who were convicted in Georgia on “framed-up cases” still have not been freed under the amnesty approved by the Georgian parliament in December. Many of those “sentenced to life terms were detained by Georgian law enforcers exactly on grounds of nationality,” he said.

Earlier in December, Tbilisi promised to carefully examine each case involving convicts from South Ossetia and whether or not each person is a political prisoner.

Tskhinval cherishes no illusions regarding the Georgian new authorities that came to power following October parliamentary poll, Tibilov pointed out.

The government of Prime Minister Bidzina Ivanishvili has repeatedly vowed to review the controversial law On Occupied Territories. However, it still remains in place, Tibilov stated. Under that document, any Georgian who has visited South Ossetia or Abkhazia after the August 2008 war will face criminal charges in Georgia. The punishment for traveling to the independent republics — which Georgia still considers part of its territory — is up to four years behind bars.

On Monday, the South Ossetian leader met with co-chairs of the Geneva discussions on security in South Caucasus — representatives of the EU, the UN, and the OSCE. Following the 2008 war, the discussions in Geneva have been the main venue for the sides of the conflict — Russia, Georgia, South Ossetia and Abkhazia (by default) — to try to find a compromise.

Earlier in the week, the conflict was remembered in Strasbourg — at the Parliamentary Assembly of the Council of Europe (PACE). During the session, Swedish MP Tina Aketoft presented a report on the humanitarian consequences of the Russian-Georgian war. The document was approved by the members of the organization.

Tskhinval, however, criticized the document, saying that it was incorrect when a person who had not visited South Ossetia reported on what was happening in the republic. In Tibilov’s view, such approach indicates “double standards.” He noted that Aketoft sent a request to visit the republic and was told that she could enter the territory, but only if she entered the republic via Russia. Aketoft refused to do so.

Russia voted against the report as it referred to Abkhazia and South Ossetia as Georgian territories. However, the session revealed first signs of possible warming in relations between Moscow in Tbilisi.

The head of Russian delegation to PACE, Alexey Pushkov met for the first time with his Georgian counterpart. It was agreed that the delegations will hold their first full-format talks since the 2008 war during the upcoming PACE session in April.

Moscow regrets US pullout from bilateral commission on human rights

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RIA Novosti / Maxim Blinov

RIA Novosti / Maxim Blinov

The United States has delivered the latest setback to Russia-US relations by announcing it will no longer participate in the Russian-American Bilateral Presidential Commission on Civil Society.

­“We regret whenever a bilateral format is canceled without an appropriate substitute,” presidential press secretary Dmitry Peskov told Interfax.

Moscow did not receive the US announcement through official diplomatic channels, but rather via news agencies.

“[The US announcement] has until now reached us verbally; we have not yet received any written official documents on Washington’s decision to withdraw from this format of dialogue with Russia,” Konstantin Dolgov, the Foreign Ministry’s envoy on human rights, democracy and supremacy of law, told reporters on Friday.

The US decision to quit the Working Group on Civil Society of the Russian-American Bilateral Presidential Commission was announced by Thomas Melia, deputy secretary of state for democracy, human rights and labor, in an interview with Interfax.

Melia said the bilateral working group “is no longer an appropriate or effective forum that would facilitate the development and strengthening of civil society.” At the same time, he emphasized that the United States will continue to work “in the field of human rights with the Russian government and civil society.”

“We remain firmly committed to working with the Russian civil society in support of its objectives, including by further strengthening the links between the civil societies of Russia and the United States,” Melia said. “The US government is prepared to be honest and open dialogue on civil society and human rights with the Russian government and Russian civil society.”

The US—Russia Bilateral Presidential Commission was inaugurated on July 6, 2009 by US President Barack Obama and then-Russian President Dmitry Medvedev as part of the so-called ‘reset’ in relations between the two former Cold War foes.

The declared Mission Statement of the Commission is, in part, “identifying areas of cooperation and pursuing joint projects and actions that strengthen strategic stability, international security, economic well-being, and the development of ties between the Russian and American people…”

The US announcement came on the same day that the president of the Russian International Affairs Council, Igor Ivanov, said he expects US foreign policy to be more energetic and even tough during Barack Obama’s second presidential term.

“In my recent conversation with John Kerry [who is anticipated to replace Hillary Clinton as the new Secretary of State], he said that now is not the time for loud statements, but a time for specific actions,” Ivanov said.

Aside from the group on civil society, the US-Russia Bilateral Presidential Commission has a multitude of other organizations that work in various diverse fields, including agriculture, arms control, counter terrorism, military technology, health and the environment.

Robert Bridge, RT

Murray bites into Australian Open final

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Andy Murray (Reuters / Mark Kolbe / Pool)

Andy Murray (Reuters / Mark Kolbe / Pool)

Andy Murray has reached his third Australian Open final beating four-time champion Roger Federer in a five-set thriller.

Murray showed solid play in the first three sets, not allowing Federer a single break. But the more experienced Swiss made the most of his chances during the second set tie-break, which allowed him to stay in the match.

A tense fourth set saw the Scot come from 4-1 down to break Federer’s serve twice as he was serving for the set. But Federer stormed back to earn his second break of the match and went on to level things on court winning another tie-break.

However, Murray proved fresher in the decider as he quickly swept into a 3-0 lead and closed out the four-hour marathon 6-4, (5)6-7, 6-3, (2)6-7, 6-2. His record against Federer is now 11-9.

Murray will now face reigning champion Novak Djokovic in Sunday’s final. The Serb, who beat Murray in the 2011 final and last year’s semi-final, is regarded as favorite.

In the women’s final on Saturday, world No. 1 Victoria Azarenka will defend her title against sixth seed Li Na.

Meanwhile, the top-seeded Italian pair of Sara Errani and Roberta Vinci have won the first Australian Open 2013 titles by beating local heroes Ashleigh Barty and Casey Dellacqua in the women’s doubles.

Newcastle striker held over rape claim

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Newcastle United striker Nile Ranger has been arrested on suspicion of rape, sources said.

The 21-year-old Premier League footballer was held by Northumbria Police following an allegation made by a woman that she was attacked at a hotel in Jesmond, Newcastle between Wednesday and Thursday.

London-born Ranger, who lives in Forest Hall, North Tyneside, was still being questioned today.

A police spokeswoman said: “On Thursday January 24 a woman reported to police that she had been raped overnight at a hotel in Jesmond.

“A 21-year-old man has been arrested at an address in Forest Hall on suspicion of rape.”

Ranger angered fans by criticising them for booing after Newcastle lost to Reading at the weekend.

A Newcastle United spokeswoman declined to comment.

More follows…

As Euro Banks Return €137 Billion In Cash, Moody’s Warns “European Banks Need More Cash”

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Europe has now officially become the Schrodinger continent, demanding both sides of the economic coin so to speak, and is stuck between the proverbial rock and hard place (or “a cake and eating it”). On one hand it wants to telegraph its financial system is getting stronger, and doesn’t need trillions in implicit and explicit ECB backstops, on the other it needs a liquidity buffer against an economy that, especially in the periphary, is rapidly deteriorating (Spanish bad debt just hit a new all time high while Italian bad loans rose by 16.7% in one year as more and more assets become impaired). On one hand it wants a strong currency to avoid any doubt that there is redenomination risk, on the other it desperately needs a weak currency to spur exports out of the Eurozone (as Spain showed when the EUR plunged in 2012, however that weak currency is now a distant memory and it is now seriously weighing on exports). On the one hand Europe wants to show its banks have solidarity with one another and will support each other, on the other those banks that are in a stronger position can’t wait to shed the stigma of being associated with the weak banks (in this case by accepting LTRO bailouts).

It is the latest that is the most glaring dichotomy because as reported earlier, while some 278 banks, or about half of the original LTRO participants, voluntarily paid back some €137 billion to the ECB, it is none other than Moody’s warning that European banks, especially those in the periphery, will need much more cash.

From Reuters:

Banks in Spain, Italy, Ireland and Britain need to set aside much more money to cover potentially bad loans, credit ratings agency Moody’s said on Thursday, meaning European taxpayers may again be tapped for cash.

European banks have already raised hundreds of billions of euros to cover possible losses from loans that soured in property and financial market crises. Much of the funding has come from governments.

“We believe that many banks, in particular in Spain, Italy, Ireland, and the UK, require material amounts of additional provisions to fully clean up their balance sheets,” Moody’s said in its global banking outlook for 2013.

“Some banks have in recent years delayed full recognition of embedded loan losses, partly by restructuring loans,” the report added. “This strategy of buying time (often tolerated by regulators) limits a bank’s capacity for new lending and poses risks for creditors of European banks.”

Moody’s did not say how much extra money banks would need.

In this case Moody’s is spot on, and what Europe certainly does not need, is giving the impression that the ECB is implicitly tightening, which is how the market is interpreting today’s action and Nomura has already raising its forecast for total H1 LTRO repayment to €350 billion. Recall from Deutsche Bank:

However the market will likely continue to have some focus on the fact that the ECB balance sheet is likely to be steadily shrinking for a period at a time when the Fed is effectively increasing its by $85bn/month and where Japan is seen by many to be set to notably increase its interventions. So while the repayments are not a big deal in themselves the contrast between the ECB and many other central banks means that the Euro is probably biased to appreciate for the foreseeable future. This might provide an unwelcome headwind for growth in Europe later in the year. Despite the promise of the OMT, Europe is in danger as being seen as the least active in the near-term in the currency war skirmishes that are focusing investors minds at the moment. Maybe actions elsewhere and a higher Euro will eventually lead to the ECB balance sheet expanding again after some market stress but this is further down the road.

So what just happened in Europe? Well, remember when Jean Claude Trichet hiked rates in the middle of 2011 to, that’s right, prove that Europe is fixed (and when inflation was rampant – everyone remember what happened next.

As for Europe’s banks needing cash – they sure do, maybe not right now in this latest momentary monetary lull, but soon once it becomes clear that nothing has changed and that simply injecting even more liquidity into the market does nothing for actual capital quality, we will all be backt so quare one.

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Israeli Elections: The More Things Change the More They Stay the Same

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Context: As yet there are no context links for this item.

Bio

Shir Hever is an economic researcher in the Alternative Information Center, a Palestinian-Israeli organization active in Jerusalem and Beit-Sahour. Researching the economic aspect of the Israeli occupation of the Palestinian territories, some of his research topics include the international aid to the Palestinians and to Israel, the effects of the Israeli occupation of the Palestinian territories on the Israeli economy, and the boycott, divestment and sanctions campaigns against Israel. His work also includes giving lectures and presentations on the economy of the occupation. His first book: Political Economy of Israel’s Occupation: Repression Beyond Exploitation, has been published by Pluto Press.

Transcript

PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Baltimore. And welcome to this week’s edition of The Hever Report with Shir Hever, who now joins us, where he’s working on his PhD in Germany.

Shir is an economist. He’s studying the Israeli occupation of the Palestinian territories. He works with the Alternative Information Center, which is a join Palestinian-Israeli organization based in Jerusalem. Thanks for joining us again, Shir.SHIR HEVER, ECONOMIST, ALTERNATIVE INFORMATION CENTER: Hi, Paul.JAY: So the Israeli elections–some surprises. What do you make of what happened?HEVER: Overall there hasn’t been much change and there weren’t that many surprises. One thing that’s rather surprising is that the rate of participation in the election has gone up a bit. We’ve seen over the last decade or so a constant decline in public participation in politics, mainly because of desperation and frustration of the general public. What’s interesting is that the kind of political map that we have now, if we look at the opinions of the leading parties, it’s almost identical to the one that we had in the previous elections, and yet half of the members of parliament have been replaced. And I think that’s a very good indication of how the political system in Israel works, because although the public hasn’t made any choice to change the agenda, to change the leading ideology of the large parties and also the small parties–but the Israeli public is very unforgiving towards failed leaders and quickly begins to hate its own politicians for being corrupt and ineffective. So the politicians change seats, they get replaced, but then the new ones are just carbon copies of the old ones.JAY: So you’re saying this is more about the personalities than the policies. But the way the American media, at least, is covering this, Lapid, who won–what is it?–19 seats and is being described as, quote, center-left, he’s being described as the voice of the middle class, the workers, and such–well, so I guess there’s a two-part question. One is: is he perceived that way in Israel, and whether he actually is or not? And then, two, what is he really?HEVER: Yeah. Well, Lapid is a sort of empty kind of bag or really is a–.JAY: Vessel, as they say, yeah.HEVER: Empty vessel, yeah. He’s a politician. He’s very new to politics. He was a journalist, and as a journalist, actually, his main job was to be the anchor for the evening news, which means that mostly he didn’t express his own opinions but just read from a teleprompter. But being handsome, well dressed, well groomed, he appealed to the public as a sort of authority figure or fatherly figure.He’s also the son of a famous politician who also made the same move from journalism to politics, although his father was actually more of a pundit with his own opinions and Lapid was always very, very careful not to express any kind of opinion that might anger anyone, that might create enemies for him. So that means that he barely said anything, actually. The only things that he dared to say about his own opinions are pretty identical to what we hear from Netanyahu and also from the leaders of the other parties.The media tries to create a sort of spectacle to create drama so they can get their ratings, so they try to make this into the sort of struggle between left and right. But when we go down and examine in detail what are the actual proposals, what are the actual ideologies promoted by the different parties, there’s actually no difference at all. Lapid is saying the same thing as the others.JAY: Yeah. Well, give us examples of Lapid, ’cause we’re told that he’s this left-of-center, pro working class/middle class guy. So if he’s not, what is he?HEVER: Yeah. He said that he’s pro middle class. He said that he understands what it is to be a middle-class member. He wrote a paper–not a paper; he wrote a short article under the title, “We the Slaves”.But at the same time, he’s in the top thousandth of the population in terms of his income. And he used to work to promote the sales of one of his biggest and richest banks, so he actually works for the top–I wouldn’t say 1 percent; it’s 0.1 percent, and he belongs in that demographic.And although he tries to make these sort of statements that he feels the pain of the general public in terms of the economic situation, he didn’t say anything concrete about what kind of reforms he wants to implement, except that he wants to privatize education or to increase privatization in the education sector. So that means he’s a complete neoliberal. He believes in using the private sector at the expense of the public sector. He believes that the Israeli school system is malfunctioning. On that point I agree with him. But he also believes that the solution would be to bring in companies with the interest to make as much profit as possible, take over the schools, and to run them as for-profit organizations.And, of course, that kind of idea is something that I think most of his voters didn’t really take into account, didn’t really consider. They voted for him because he promised to shake things up, because he promised to make changes. He didn’t say which changes.JAY: Okay. What about this issue that he says he wants to reopen negotiations with Palestinians? The press here have been making an issue out of that, in other words, to distinguish him from Netanyahu.HEVER: Well, let’s not forget Netanyahu has been repeatedly saying over his entire term that he wants to reopen negotiations with the Palestinians as well. JAY: But is there any difference on this rhetoric of no partner for peace?HEVER: Yeah. Well, Netanyahu is saying at the same time, there is no partner for peace, but let’s negotiate anyway, because the negotiations give Israel the image that Israel wants peace, that Israel is willing to make compromise, although the only compromise Israel is really willing to make is to continue the negotiations ad nauseam. And Lapid, I think, understands that. He didn’t say, for example, I believe that Palestinians should have the right for a state in the ’67 borders. That he didn’t say. He didn’t say anything about the right of return of Palestinian refugees. He only stresses the things that are in the consensus, that he supports Zionism, that he’s a patriotic Jew, and that he believes everything that the security authorities tell him. So whatever the army statements are, he takes them at face value.JAY: Yeah. Even in the quotes about restarting negotiations, it’s all about international appearance of Israel, not that he wants to find some kind of actual settlement. Now, what about the issue of secular–that he represents secular forces and that there’s this, you know–. I attended a film festival in Israel in ’98. I was told a lot of Palestinian filmmakers were coming there. They wound up not coming. But one of my films was shown there, and when I was there, somebody told me that if it hadn’t–if it wasn’t for the Palestinian issue, in fact, in a sense, if the Palestinian issue was resolved in some way and there really was a peace plan that worked, the next day a major fight would break out between secular and orthodox in Israel, that this contradiction’s boiling beneath the surface. How much did that have to do with his, Lapid’s election results?HEVER: I think that is the one point where the elections actually have any kind of significance, that there’s any kind of change in relation to the previous parliament, because Lapid’s father was a politician that was very associated with hatred of ultra-Orthodox Jews and religious Jews. He supported a sort of separation of church and state in Israel, although he still was a Zionist, believing that Israel should be a Jewish state. So his idea was a state built on an ethnic supremacy of Jews rather than a religious supremacy of Jews.JAY: Shir, really quickly for people that don’t know, talk a little bit about how much authority the orthodox have over social life in Israel.HEVER: This is–there is a famous status quo between the secular and the ultra-Orthodox. This was something, a deal that was cooked over 65 years ago by Ben-Gurion, the first prime minister of Israel, who understood that the ultra-Orthodox are very important in order to achieve the goal of having a Jewish majority in Israel, because they have more children, the rate of natural growth is fast. And he made an agreement with the ultra-Orthodox parties that Israel will not have a constitution–until today, Israel doesn’t have a constitution–so that certain things can remain vague and there will be a sort of exemption from military service for those ultra-Orthodox who choose to go to yeshivas during their recruitment years. And that included several hundred ultra-Orthodox young people back in the days of Ben-Gurion. Today we’re talking about over 60,000 ultra-Orthodox youngsters who are exempt from military service because of that same agreement. Ben-Gurion planted the seeds to allow the ultra-Orthodox community a lot of autonomy. So even though the ultra-Orthodox originally were very suspicious of Zionism, they saw Zionism almost as a blasphemy to Jewish religion, they were tempted by the autonomy.JAY: Let me just jump in here fast. That’s because the Orthodox believe that the state of Israel could only come into being at the return of the Messiah, and that hadn’t happened, so there shouldn’t be a state of Israel. But they seem to have come around by now.HEVER: Yeah, because there is also another branch of Judaism, a newer branch, known frequently as the national Judaism, which believes that the coming of the Messiah is not a coming of an individual person, but actually a process of recolonizing Palestine. So, actually, through the process of building settlements, for example, they are bringing the Messiah.The ultra-Orthodox have been very hostile to that idea from the start, but are gradually coming over to that side over the years, mainly because the state also builds colonies in the West Bank for ultra-Orthodox, where they get cheap housing and better public services. And the fastest-growing cities in the West Bank, the colonies, are actually ultra-Orthodox communities. So now the ultra-Orthodox have a stake in the occupation. And that also moves them more to the right of the Israeli political map.JAY: Now, talk about other parts of Israeli life that the rabbis control.HEVER: Israel has laws–for example, it’s illegal to raise pigs in Israel because pigs are not a kosher animal. But it is possible to raise them if they’re not raised on the soil of Israel. So some people raise them on platforms. That’s a way around the law.In most cities in Israel, there’s no public transportation on Saturday, on the Shabbat.And in Israel it is illegal for people to get married except in their religious institution. So that means that Muslims can get married only with Muslims, Christians only with Christians, Jews only with Jews and only with a rabbi. And, of course, religious marriage is entrenched in law, which means that women don’t have the same rights in Israel within the system of marriage. For example, a man can always get a divorce, but a woman cannot get a divorce without the consent of a man. Israel does recognize civil marriages of couples who got married outside of the state. But, again, if they come into Israel and they want to get a divorce, they have to do it with a rabbi.So these are just a few examples.There are also a lot of autonomies for the ultra-Orthodox community in education. And in neighborhoods where ultra-Orthodox are a majority, they can sometimes just close the streets completely on the Saturday and prevent cars from going. And all these forms of autonomy were allowed by the state because it was a sort of alliance. The ultra-Orthodox will support Zionism and will support right-wing governments, and in exchange the government will overlook or turn a blind eye to the fact that the ultra-Orthodox are developing their own society within a society in Israel, where most of the children of the ultra-Orthodox don’t study math at school, don’t study English, and the kind of education that they do receive is mainly religious education, which doesn’t really help them get jobs in the general market. They receive some public support in the form of stipends from the government, and these stipends in a way allow this community to preserve itself. But 45 percent of ultra-Orthodox in Israel live under the poverty line. Now, I’m not sure if we should call them poor, because this is a sort of life choice for them. You can imagine also a student who chooses to go to school all day and not work. So that student is not necessarily poor, even though their income is low.And the ultra-Orthodox are–the fact that they’re able to get these stipends from the government and have that separate sort of lifestyle has made them very prime targets for hate campaigns. And we see these hate campaigns in many of the political parties in Israel, including parties at the extreme right, like HaBayit HaYehudi of Bennett, which are saying, these people live at the expense of the state, they should go and get a job. Nobody’s really calculating the numbers. If you actually look at how much budget burden the ultra-Orthodox community is on the Israeli budget, that’s not so much, certainly not compared to what the government is giving to the Ministry of Defense. That’s where the real money is.JAY: So this resentment against the ultra-Orthodox is not really a left-right issue, in the sense that the supposed quasi left of center, the way they describe it–I guess in Israeli terms it has some meaning, but you get just as much resentment of the ultra-Orthodox on the far right, including, like, Foreign Minister Lieberman was very critical of the ultra-Orthodox as well.HEVER: Yeah. Certainly. And the real left in Israel is, of course, very much against the idea of demonizing a whole part of the society. And they–so sometimes you see those seemingly strange alliances between ultra-Orthodox and the radical leftist parties. But, of course, the ultra-Orthodox are not proponents of human rights, gender equality, and so on. They’re a very traditional part of society. And they have become very much accustomed to this autonomy that they got from the state for so many years.JAY: So now we’re–just we’re kind of running out of time, and this is something we’re going to do many segments on to dig into more deeply. But just to bring us back to the beginning, so this–Lapid’s election results, which seem to have been–nobody really predicted as many seats as he got–this was one of the driving motivations, wasn’t it, this resentment against the ultra-Orthodox. And he gave voice to this.HEVER: Well, I think for a lot of people in Israel, they also voted Lapid with the hope that they didn’t want to vote Netanyahu. But Lapid was everything like Netanyahu except being Netanyahu. And what’s really amazing is that when the first results were published, later there was a certain–a slight correction to the results, which kind of made this a moot point, but it seemed that Lapid had actually the ability to become the prime minister, because the Labor Party and some of those centrist-left parties were willing to support him for prime minister. He had half of the seats in parliament, and then he could become the prime minister. And Lapid himself immediately rejected the idea, because that would mean that he would have to depend on the Palestinian parliament members in the Knesset, who were, of course, willing to prefer him over Netanyahu. But Lapid immediately said, I’m not going to sit with these people. And, of course, that’s how he exposes that the level of racism, the level of hatred towards Palestinians is so deep that he was willing to give up his chance of being prime minister, and he lost his main negotiating card. So now he’s going to sit with Netanyahu in the same coalition. It seems inevitable. And the one point where he could make a demand from Netanyahu in exchange for sitting in his coalition is probably going to be forcing ultra-Orthodox people in Israel to join the army, to enlist. The army doesn’t really want these ultra-Orthodox people, because they’re not very motivated to join the army and they’re not very well educated by the military’s standard, so they’re not going to be the best soldiers that the army’s looking for. But this is the sort of politic of hatred towards minorities, which they say, why should these people be exempt. And this is likely to cause a lot of strife and conflict within Israeli society over the next four years.JAY: Right. So when it comes to Israeli elections, the more things change, the more they stay the same. Thanks very much, Shir.HEVER: Thank you, Paul.JAY: And thank you for joining us on The Real News Network.

End

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.


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Malkin Bares Her Fangs: GOP ‘Squandered Opportunity To Really Stick It’ To Clinton On Benghazi

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Michelle Malkin visited Fox & Friends yesterday to jeer discuss Hillary Clinton’s Benghazi testimony in front of Congress Wednesday. The Los Angeles Times noted that the Republicans were so intent on “resurrect(ing) a specious political attack that got them nowhere in the final days of the presidential campaign,” they missed opportunities to get real answers as to how to prevent such tragedies from happening again. And, in the process, made Clinton look “stronger than ever.”

Malkin and her Fox News hosts were so busy following in those footsteps that they failed to consider how they missed the mark in just the same way

Malkin began her “analysis” by sneering that the hearings seemed all about “Hillary 2016.” But that’s all the Republicans at both hearings were focused on, too — getting a sound byte to use against her potential candidacy.

Malkin gave special attention to the widely-seen clip of Clinton responding to Republican Senator Ron Johnson in which he beats the political dead horse alleging that the Obama administration deliberately oversold an anti-Muslim YouTube video as the cause of the attack. Clinton’s forceful and persuasive answer: “Was it because of a protest, or was it because of guys out for a walk one night who decided they’d go kill some Americans? What difference, at this point, does it make?”

“It makes all the difference in the world,” Malkin said contemptuously. But she never explained why. She became too caught up in attacking Republicans for having “squandered the opportunity to really stick it, not only to Hillary and the State Department, but to this entire lying administration.”

She continued, “Now I understand that there are a lot of staffers and a lot of Republicans on Capitol Hill who have been so steeped in this that they don’t realize that the basics still need to get out to the American public and that was the missed opportunity, I think.”

What are those “basics?” Calling the State Department liars, apparently. Her head thrown back and eyes wide with scorn, she ranted, “The key questions about how this administration lied and lied and lied to the American public and used this YouTube video as a ruse really needed to get out there, but I think you could count on the (she started sputtering) number of fingers on your hand how many times Republicans mentioned the video! Hello! Did they take an oath of office not to mention it yesterday?”

Host Alisyn Camerota said, “There were other questions that weren’t answered.” She then purported to play a montage of those questions but, as even she acknowledged, the video was all about Republicans speechifying attacks on Clinton and the State Department.

Malkin then disparaged Clinton as out of touch and incompetent for, supposedly, not reading cables requesting more security in Libya. But nobody mentioned what the New York Times reported: “Mrs. Clinton acknowledged that she had been briefed on a series of events that indicated that security in Benghazi was deteriorating in the months before the attack… But she said she had gone along with a recommendation from subordinates that the Benghazi post be kept open and assumed that they would take the necessary steps to protect it.”

Nor did “fair and balanced” Fox point out, as the Times did, that Clinton “has committed herself to putting in place all of the recommendations of an independent review that was led by Thomas R. Pickering, a former American ambassador, and Mike Mullen, the retired admiral who served as the chairman of the Joint Chiefs of Staff.”

Furthermore, the LA Times pointed out that “a productive hearing” would have “also included examining why Congress not only consistently underfunds the State Department, but has blocked expenditure of money that has already been appropriated to shore up American diplomatic efforts in several international trouble spots.” Or explored the facts and procedures that caused the overemphasis on the YouTube video in the first place.

Instead, Congressional Republicans — along with Malkin – chose anti-Clinton/anti-Obama grandstanding that got them face time on Fox News– and probably very little else.

Grand Theft Election: How Republicans Plan to Steal the White House

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If a Republican plan to rig the Electoral College had been in effect in 2012, it is reasonably likely that Mitt Romney would be President.

January 25, 2013  |  

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President Barack Obama won a commanding victory in this November’s elections, defeating Republican candidate and former Massachusetts Gov. Mitt Romney by nearly 4 percentage points in the popular vote. In doing so, President Obama became the first president to twice win more than 51 percent of the popular vote since President Dwight D. Eisenhower did so in 1956.

If a Republican plan to rig the Electoral College had been in effect in 2012, however, it is reasonably likely that President Romney would be the one meeting with his new cabinet officials in the Oval Office. Under current law, most states allocate all of their electoral votes to the winner of the state as a whole. This Republican Plan to rig future elections, however, would change this in several blue states where Democrats are likely to carry the state’s full slate of electors. Texas, South Carolina, and other safe red states would therefore continue to deliver every single one of their electoral votes to the Republican candidate, while blue states such as Pennsylvania or Michigan would have to give away half or more of theirs to the Republican ticket. The result is a giant thumb on the scale for Republicans, enabling them to take the White House even when the electorate strongly prefers the Democratic candidate.

How the Republican election-rigging plan works

This Republican Plan would reallocate electoral votes so that a maximum of two electoral votes would go to the overall winner of several key blue states. The lion’s share of the state’s electors would then be allocated one by one to the presidential candidate who won each individual congressional district. (see Figure 1) Thus, in a blue state such as Michigan–which President Obama won by nearly 10 points in 2012–Gov. Romney would have received 9 of the state’s 16 electoral votes because he received more votes than the president did in nine of the state’s congressional districts. In other words, the Republican candidate would receive more than half of the state’s electoral votes despite being overwhelmingly defeated in the state as a whole.

Cashing in on gerrymandering

The Republican Plan does not just apply one set of rules in red states and another set of rules in blue states–it also takes advantage of profoundly gerrymandered congressional maps in order to stack the deck even more for Republican presidential candidates. In 2012 Democratic House candidates received nearly 1.4 million more votes than their Republican counterparts. Yet Republican candidates currently hold a 33-seat majority in the House, due in large part to the fact that Republican state legislatures controlled the redistricting process in several key states. Indeed, Republicans were so successful in their efforts to lock in their control of the House of Representatives through gerrymandering that Democratic House candidates would have needed to win the national popular vote by more than 7 percentage points in order to receive the barest majority in the House. Republicans aren’t particularly shy about touting the success of their gerrymanders either: The Republican State Leadership Committee released an extensive memo boasting about how they used gerrymanders to lock down GOP majorities in the House.

The impact of the current congressional maps is most profound in six key states. As explained above, President Obama did win Michigan by nearly 10 points, but Democratic candidates won only 5 of the state’s 14 congressional seats. Likewise, President Obama won Florida, Ohio, Pennsylvania, Virginia, and Wisconsin–in some cases by comfortable margins–but Republicans dominate the congressional delegations from these states.

Notably, all six of these states are currently controlled by Republican governors and legislatures, meaning that all six of them could implement the Republican election-rigging plan before the 2016 election.

Man jailed for 25 years for toddler’s murder

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A man has been ordered to serve at least 25 years for murdering the 15-month-old daughter of his former partner.

Barry McCarney, 33, of County Tyrone, was found guilty last month of Millie Martin’s murder in Enniskillen in 2009.

Setting the minimum tariff McCarney must serve before being considered for release, Mr Justice Ben Stephens told the labourer at Belfast Crown Court he was a “deeply manipulative man” who had carried out a “sadistic sexual assault” on the child.

Millie was 15-months-old when she died in Belfast’s Royal Victoria Hospital after being badly beaten at a house in Enniskillen, County Fermanagh, the day before.

Her mother Rachel Martin, 25, had gone briefly to a local shop in December 2009, but when she returned home her daughter and partner were not in the house.

She later said: “I was literally minutes away and when I got back … I got a phone call telling me to get to the Erne hospital quick – Millie wasn’t well – I was in hysterics.”

McCarney was filmed on hospital CCTV carrying Millie into the emergency ward before she was transferred to the Royal Victoria hospital, where she was put on a life-support machine until members of her family arrived to say goodbye.

At the time, Millie’s grandmother Margaret said the child “could never be replaced – it’s just a nightmare, a nightmare every day”.

During McCarney’s trial the jury heard Millie had received a fatal blow to the back of her head as well as a number of other injuries, including serious internal injuries which could also have proved fatal.

It was claimed that Injuries to her abdomen had been caused by regular punching in the weeks before her death.

McCarney had also found guilty of grievous bodily harm with intent and sexual assault of Millie. He must serve at least six years and two years for those crimes respectively, and those terms will run concurrently with his murder tariff.

McCarney showed little emotion as he was sentenced.

Ms Martin looked on from the public gallery. She was previously acquitted of charges of allowing her daughter’s death and cruelty through wilful neglect.

She criticised the sentence, saying outside the court: “I don’t think it was long enough, 25 years isn’t long enough.”

Tahrir Swells Once More As Egypt Marks Anniversary of Revolution

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A protester gestures at riot police during a demonstration at Qasr al-Aini Street near Tahrir Square in Cairo January 24, 2013. (Photo: Reuters/Mohamed Abd El Ghany)Major demonstrations across Egypt are taking place Friday against the ruling government, led by the Muslim Brotherhood and its Freedom and Justice Party, a full two years after secular and liberal activists forced the long-standing Mubarak regime from power.

Reports of clashes were coming from Tahrir Square as supporters of the ‘pro-democracy revolution’ continue their struggle for reform by turning their political and social critique against President Mohamed Morsi, the still dominant military class, and a newly approved constitution that they say does not embody the revolutionary values they fought for.

“We are here today to celebrate the anniversary of the revolution, and make it clear to the government that things are still as they were before the revolution,” Ayman al-Diasty, spokesperson for the April 6 movement, one of the leading reform groups still active in its push for deeper change, told the Egypt Independent.

Al-Jazeera reports on the demonstration, some of which turned violent, in Cairo:

Hundreds took to the capital’s now iconic Tahrir Square on Friday morning, where youths protesting against the government clashed with Cairo police.

The ministry of health said 16 people were wounded in the violence.

A witness, speaking to the Reuters news agency, said at one point riot police used one of the incendiaries thrown at them to set ablaze at least two tents erected by the youths.

Tahrir square, which was the epicentre of the 2011 protests, is expected to further fill with crowds who oppose the government of Mohamed Morsi, the president.

The Guardian, which is providing live updates here, shared this report from Patrick Kingsley, their correspondent on the ground in Tahrir:

There’s trouble down at the southern end of Tahrir Square, as police and hundreds of protesters take it in turns to lob meaty chunks of rubble over two makeshift walls built to protect the Interior Ministry from attack. 

It’s personal, says one of the stone-throwers, Karim Ali – revenge for the protesters killed by police since 2011. “The police are behaving the same as they did during the Mubarak years,” says Ali, carrying a slingshot.

During particularly violent volleys, the crowd surges back to avoid being hit. Some aren’t so lucky and are treated for head-wounds in the field hospital to the north. Teargas hangs in the air, and young girls walk through the crowd offering tissues to those with tears streaming down their face. Many wear scarves to keep out the gas, and a lucky few have gas masks.

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The Egypt Independent adds:

There have been calls for major protests in Upper Egypt, Nile Delta and the North Coast, including the governorates of Aswan, Qena, the Red Sea, Assiut, Minya, Gharbiya, Kafr al-Sheikh, Damietta, Daqahlia, Suez and Alexandria.

Six marches kicked off across Mansoura, the capital of Daqahlia Governorate, after Friday prayers. Hundreds of protesters chanted against the regime and demanded immediate policy reform, particularly concerning the economy.

The Dostour, Strong Egypt, Nasr and Popular Current parties led four marches, while the April 6 Youth Movement and the Revolutionary Socialists led the other two, chanting “one hand.” The atmosphere became tense when one march passed a Muslim Brotherhood-sponsored fair handing out food to celebrate the revolution.

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‘Your Body Is Not A Crime Scene’: Rape Crisis Charity Blasts US Bill That Would Criminalise Abortions

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A UK rape charity has blasted a US bill that would legally require victims of rape to carry their pregnancies to term as “horrendous”.

The bill, introduced by New Mexico Republican lawmaker Cathrynn Brown, would potentially charge a rape victim who ended her pregnancy with a third-degree felony for “tampering with evidence.”

Speaking on behalf of Rape Crisis, Jo Wood told Huffington Post UK the proposals were “horrendous” and akin to “re-victimisation”.

cathrynn brown

New Mexico lawmaker Cathrynn Brown has introduced a bill that would charge a rape victim who ended her pregnancy

She said: “Your body is not a crime scene. There are all sorts of forensics that can be carried out after a rape without the need to carry a baby to full term.

“The suggestion that we are legally obliged to put crime scene tape around a rape survivor for nine months is absurd. Words fail me, really.

“If such a thing were suggested in Britain, I am sure there would be a total outcry.”

Brown’s House Bill 206 currently states: “Tampering with evidence shall include procuring or facilitating an abortion, or compelling or coercing another to obtain an abortion, of a fetus that is the result of criminal sexual penetration or incest with the intent to destroy evidence of the crime.”

Third degree felonies in New Mexico can carry a sentence of up to three years in prison.

Think Progress points out that under the bill if a woman ended her pregnancy after being raped, both she and her doctor could charged. It adds the bill would “add the forced choice between prison or an unwanted pregnancy “ to sexual assault trial proceedings.

SEE ALSO:

The bill has been branded “blatantly unconstitutional” by Pat Davis of progressive non-profit group ProgressNow New Mexico.

He added: “In addition to being blatantly unconstitutional, the bill turns victims of rape and incest, who have just been through a horrible sexual assault, into felons and forces them to become incubators of evidence for the state.

“According to Republican philosophy, victims who are ‘legitimately raped’ will now have to carry the fetus to term in order to prove their case.”

The bill is unlikely to pass, as Democrats have a majority in both chambers of New Mexico’s state legislature.

Following the outcry over her proposals on Wednesday, Brown issued a statement on Thursday insisting the bill’s goal is to punish the person who commits the incest or rape and then procures or facilitates an abortion to destroy evidence of the crime.

She said: “New Mexico needs to strengthen its laws to deter sex offenders. By adding this law in New Mexico, we can help to protect women across our state.”

Salon points out Brown’s damage control campaign is ongoing – with her contact information being removed from her legislature page.

Additionally, Brown tells the Carlsbad Current-Argus the “poorly written” bill is currently being reworked for clarity.

The paper reports Brown missed the “language problems that led to misinterpretation of her bill” and that a “drafting error occurred”.

She said: “I started getting real nasty phone calls from people around the country. Some national publications and TV stations published stories that I was against the victim. That’s far from the truth. I want to protect the victim.”

Rape Crisis is a registered charity and the national umbrella organisation for Rape Crisis Centres across England and Wales. It campaigns to raise awareness of the prevalence of sexual violence and highlights the importance and need for high quality, specialised support.

Guest Post: The Road To Debt-Serfdom

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Via Charles Hugh-Smith of OfTwoMinds blog,

Ours is a dysfunctional debt-based Empire that buys the complicity of its debt-serfs with entitlement bread and circuses.

The road to debt-serfdom is paved by the banks and enforced by the Central State.If there is any point that is lost on ideologues, Progressive and Conservative alike, it is this: the first-order servitude and second-order tyranny of debt-serfdom can only occur if the banks’ power is extended and protected by an expansive Central State.
 

Progressives are blind to the State’s essential role in creating and empowering a parasitic financial Aristocracy, and Conservatives are blind to the tyranny of debt-serfdom imposed by the private-sector financial Aristocracy, i.e. the banking sector.
 

Answer these questions before reaching for your ideological blanket:
 

1. How many banks would loan penniless, near-zero-income students $100,000 if the State did not backstop and ruthlessly enforce its parasitic, exploitive “student loan” programs? Answer: none.
 

The consequence if the tyrannical State ceased to enforce the debt-serfdom of Student Loans: the Education Cartel would collapse in a odoriferous heap, and the banking Aristocracy would be stripped of a highly profitable State-run business.
 

2. Under what conditions would banks originate mortgages if the State did not guarantee mortgages via FHA and the other socialized-mortgage agencies? Answer: 30% to 35% down, hefty points and a higher rate of interest than FHA loans.
 

We can find the answer by examining the conditions banks demand for non-State backed loans. If the State wasn’t backstopping the risk, what bank would be insane enough to originate a 30-year fixed mortgage at 1 point over official inflation and a negative rate when measured in real inflation? It makes no sense without State subsidies and guarantees.
 

What percentage of the mortgage market is purely private, i.e. not backstopped by FHA et al.? About 5%, and the terms of these private loans are considerably stiffer than those originated under the taxpayer-funded umbrella of FHA.
 

In other words, debt-serfdom is not possible without the State enabling and enforcing the banks’ power. Blaming the banks for imposing debt-serfdom is like blaming the junkie for picking up a free bag of smack or a shark for wolfing down a seal: the banks will pursue the fattest, easiest profits out of basic self-interest, just like the rest of us.
 

If the banks can capture the State’s regulatory and political machinery for a modest investment in bribery (oops, I mean political contributions, lobbying and revolving-door positions), then why wouldn’t they do so?
 

The problem is thus not the banks’ power, it is the State’s power, as the State confers and enforces the banks’ power.
 

There is precious little evidence that anyone in the current political Aristocracy has read the Federalist Papers, other than to pass an exam, and more’s the pity. That a State run by people whose grasp of American history extends all the way back to the previous election cycle (or in extreme cases, to the Reagan era that began in 1981) is dysfunctional is unsurprising.
 

Madison feared both a central bank and a presidency that morphed into a functional monarchy. Madison’s fears of a central bank were shared by his decidedly non-Federalist friend Thomas Jefferson, whose vision of a rural, localized America generally ran counter to the Federalists’ keen awareness that a strong central state was necessary to provide for a defense of the nation and to act as an impartial enforcer of transparent markets and a prudent money/credit system.
 

(I say generally, as Jefferson was persuaded to execute the Louisiana Purchase, a decidedly Federal project of expansion, and he kept the Bank of the United States intact under his able Secretary of the Treasury, Albert Gallatin.)

The proper role of the Federal government in Madison’s view was to act as a “disinterested and dispassionate umpire between different passions and interests.”
 

In my analysis, the political Aristocracy running the U.S. has fulfilled Madison’s nightmare, as it effectively operates a monarchical Empire on the Roman model.Though Louis XIV of France famously held that “L’etat, c’est moi”– the state, it is me– in the Roman and British empires, the monarchy/emperor system was a functional oligarchy in which the supposedly absolute monarchy/emperor had to consider the views and interests of the aristocracy.
 

A monarchical Empire is thus operated by a small aristocracy with a shared world view (i.e. Empire) and a very limited spectrum of opinions: that is the American Central State in a nutshell.
 

Alexander Hamilton, also a Federalist, understood the critical role of credit in fueling innovation, expansion and trade. He favored a central bank that issued sound money and prudent credit, on the 1780s Bank of England model. That the central bank would become the subservient handmaiden of private investment and commercial banks was incomprehensible.
 

Here is what has been lost in the debt-serf America we now inhabit: Albert Gallatin observed that America’s rapid, diversified economic development resulted from “the absence of those systems of internal restrictions and monopoly which continue to disfigure the state of society in other countries.”
 

If only our “leaders” read or understood Madison, Hamilton and Gallatin. But alas, they are supremely ignorant Oligarchs through and through, pleased to enforce debt-serfdom and then buy the complicity of the serfs with Federal entitlements and subsidies.
 

That too is the Roman model: a dysfunctional debt-based Empire ruled by a self-serving Elite which buys the complicity of its serfs with bread and circuses.

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Murder Confession: Teen Copies Halloween Film

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A Texas teenager has confessed to police that he shot his mother and sister after repeatedly watching a horror film about a boy who kills without remorse.

Newly released evidence in the case includes a four-page document  handwritten by Jake Evans.

In it he calmly explained how he planned to kill several members of his family last October – inspired by the 2007 remake of the horror classic Halloween.

The film is about a young boy who knifes to death his sister and others, and escapes a mental hospital years later to continue killing as an adult.

“While watching it, I was amazed at how at ease the boy was during the murders and how little remorse he had,” the 17-year-old wrote, just hours after the event.

“Afterward, I was thinking to myself it would be the same for me when I kill someone.”

He said in the confession that he initially planned on using a knife to murder his mother Jami and 15-year-old sister Mallory at their home in Aledo.

“I went back upstairs and kept pacing back and forth imagining killing Mallory,” he wrote.

“Thoughts of causing her pain kept entering my mind and were really bothering me. But then I’d think about the times she hurt my feelings.”

Evans described how earlier that day, he and his sister had argued after he accused her of making a racist comment.

He said he sat on the sofa having a pillow fight with his sister with a knife in his pocket.

But then he changed his mind.

“After a while, I thought to myself that if I were to kill my mom and Mallory, I wouldn’t want them to feel anything, so I decided to kill them both with the .22 revolver I stole from my grandpa,” he wrote.

“I then spent probably over an hour walking nervously around the house thinking how life will never be the same and how I would never see them again.”

Evans described knocking on his sister’s bedroom door at about 11.15pm and shooting her in the back and head.

He then went downstairs and shot his mother.

“As I emptied the shells on my bed, I heard noises and realised that Mallory was still alive,” he wrote.

“While I loaded the gun back up, I was shouting that I was sorry and then ran as fast as I could to kill her. I made sure my mom was dead and shot her again in the head.”

Evans called 911 and told the dispatcher what he had done.

“I know now though that I’m done with killing,” he said at the end of his statement. “What happened last night will haunt me forever.”

Gold Backed Bonds – An Alternative To European Austerity?

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From GoldCore

Gold Backed Bonds – An Alternative To European Austerity?

Today’s AM fix was USD 1,670.25, EUR 1,243.39, and GBP 1,058.93 per ounce.
Yesterday’s AM fix was USD 1,677.00, EUR 1,258.06, and GBP 1,059.18 per ounce.

Silver is trading at $31.55/oz, €23.54/oz and £20.04/oz. Platinum is trading at $1,689.00/oz, palladium at $723.00/oz and rhodium at $1,200/oz.


Cross Currency Table — Bloomberg

Gold dropped $17.90 or 1% in New York yesterday and closed at $1,667.70/oz. Silver slipped to a low of $31.60 and finished with a loss of 1.8%. Most traders were at a loss to explain the counter intuitive losses given the bullish backdrop.

Gold in Euros — 5 Years (Daily) – Bloomberg

Overnight gold bounced back from an almost 2 week low and was again especially strong in yen terms – strengthened by the Bank of Japan’s stance on aggressive monetary easing.

Russia’s Central Bank said it will continue to buy gold bullion as it seeks to diversify its foreign reserves away from paper assets, such as the euro, it views as more risky.

At Davos, George Soros, one of the largest buyers of gold in the world today, warned of currency wars and that “interest rates are going to take a big leap” – probably this year.

Bank of America warned of a “bond crash” comparable to 1994 that would trigger a string of upsets across the world. In 1994, the bond crash bankrupted Orange Country, California, and set off the Tequila Crisis in Mexico. 

Today, the world is much more fragile and the increasingly likely bond crash could lead to a Lehman style systemic crisis — but on an even greater scale.

These risks and the recent price drop has fuelled buying interest in physical metal and a minority of smart money gold buyers continue to diversify into allocated gold on the dip .

At 1500 GMT new U.S. new home sales data is released.

Across Europe, economic growth is faltering and in many Eurozone countries, sovereign debt yields are dangerously high and austerity measures are creating much hardship.

The World Gold Council has been exploring ways that Eurozone member states could use their gold reserves to help bring down the cost of borrowing.

The Eurozone is the largest sovereign holder of gold in the world and has over 10,000 tonnes of gold reserves. The Eurozone, including the ECB, has 10,787.4 tonnes of gold worth over a significant €450 billion.  Some of the countries worst affected by the crisis, including Portugal and Italy, own a significant proportion of these assets. Italy alone holds nearly 2,000 tonnes of gold. 

The Eurozone as a whole has 32.6% more gold reserves than the U.S. which has 8,133.5 tonnes of gold.

Due to the ongoing global debt crisis and significant systemic and monetary risk, it would be financial and monetary folly of the highest order to sell gold. Indeed, prudent creditor nation central banks are continuing to add to their gold reserves.

Most agree that outright sales of gold are not the answer. Aside from the obvious problem that the outstanding debt level of the struggling European countries far surpasses the value of their gold reserves, existing EU laws prohibit such a move to finance governments, as do the provisions of the Central Bank Gold Agreement, which limits gold sales.

To illustrate this point, the gold holdings of the crisis hit Eurozone countries (Portugal, Spain, Greece, Ireland and Italy) represent only 3.3% of the combined outstanding debt of their central governments.

A one-time sale of all of their gold reserves would probably not cover even one year’s worth of their debt service costs. This would be akin to an individual selling everything they owned in order to make one month’s mortgage payment.

However, there may be an alternative to selling gold for desperate cash strapped nations facing vicious austerity. The alternative is to use European gold reserves in a way that will buy time for growth to take hold. 

The World Gold Council and leading academics and international think tanks believe that using a portion of a nation’s gold reserves to back sovereign debt would lower sovereign debt yields and give some of the Eurozone’s most distressed countries time to work on economic reform and recovery.

According to research done by the World Gold Council using the European gold reserves as collateral for new sovereign debt issues would mean that without selling an ounce of gold, Eurozone countries could raise €413 billion. This is over 20% of Italy’s and Portugal’s two year borrowing requirements. 

The move to back sovereign bonds with gold would lower sovereign debt yields, without increasing inflation, which would help to calm markets. This should give European countries some vital breathing space to work on economic reform and recovery.

Some citizens would be concerned that there may be a risk that the sovereign nations who pledge their gold as collateral could ultimately end up losing their gold reserves to the ECB, or whoever the collateral of the gold reserves are pledged to, in the event of a default.

Unlike currency debasement and the printing and electronic creation of money to buy sovereign debt, under schemes such as Draghi’s “outright monetary transactions” (OMT), the use of gold as collateral would not create fiscal transfers between Eurozone members, long term inflation or currency devaluation risk.

The proposal shows how gold is being increasingly seen as a safe haven asset and currency.

Indeed, it suggests that those who have suggested returning to some form of gold standard are not as deluded as they have often been portrayed.

Mobilising Europe’s gold is a temporary move which the World Gold Council and leading academics believe will help to create a more permanent solution which in time would help the Eurozone extract itself from its debt crisis.

Europe and the world faces an exceptionally challenging period and unconventional policy responses are called for. 

A gold-backed bond may offer at least a partial solution to Europe’s woes. 

The video ‘Leveraging Gold Reserves To Help Lower Eurozone Sovereign Debt Yields’ explores why such a measure could offer an alternative to austerity for the Eurozone: ‘Leveraging Gold Reserves To Help Lower Eurozone Sovereign Debt Yields’ 

NEWS

Gold Seen by Morgan Stanley Extending Rally as QE3 Runs to 2014 – Bloomberg

Gold bounces from near 2-week low on euro, Japan policy – Bloomberg

Interest Rates Will Spike This Year: Soros – CNBC

Petrol Price Rise On Way As ‘Floodgates Open’ — Sky News

Russia central bank to keep buying gold: Ulyukayev – Brecorder

Ghana may repatriate Gold reserves from US, Europe — Bullion Street

COMMENTARY

Video: Gold Price To Rise In 2013 — The Telegraph

Bank of America issues `bond crash’ alert on Fed tightening fears — The Telegraph

Video: Dalio’s Perspective on Gold’s Importance As Diversification – CNBC

Who Are the Whales Buying Gold? — Economic Policy Journal

For breaking news and commentary on financial markets and gold, follow us on Twitter.

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Russia to see first F1 Grand Prix in November 2014 – official

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RIA Novosti / Ruslan Krivobok

RIA Novosti / Ruslan Krivobok

Russia will host its first Formula One Grand Prix in November 2014 despite earlier reports of delays to the Sochi track construction.

­The mayor of the host city Anatoly Pakhomov confirmed the news on Friday. “After the Olympics, in November, the Formula One will be held,” R-Sport quotes Pakhomov as saying.

Consequently the Sochi event will be one of the last races of the season. The provisional 2014 schedule is expected to be announced after the end of the 2013 season.

Last year the Russian media reported serious delays in the construction of the Sochi track, but Pakhomov believes there is no threat to the race.

“Everything is going according to schedule,” the mayor said, adding that any delays are unthinkable because they would damage “the honor of the state”.

The Sochi track construction kicked off in 2011 after the city was contracted to host seven races from 2014 to 2020.

Father bit off love rival’s finger

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A father who bit off part of a love rival’s finger at a children’s nativity play has been sentenced to 11 months in jail.

Lee Wilkinson, 40, fought with Michael Dent at Harton Primary School, South Shields, in December 2011. During the tussle he bit off the tip of Mr Dent’s left little finger.

Newcastle Crown Court heard that the pair had been involved in a long-running feud after Mr Dent had an affair with Wilkinson’s wife while he was working away.

Bridie Smurtwaite, prosecuting, said: “They both attended the school, with Mr Dent arriving in the queue behind the defendant. When they saw each other, words were exchanged and Mr Dent suggested they go outside to have a fight.

“A scuffle broke out and during the fight Mr Dent put his hand in the defendant’s mouth. The defendant then bit hard on the finger. Mr Dent forcibly pulled his hand away and the injury then occurred.”

Passing sentence Judge Simon Hickey said he was unable to suspend sentence because of the nature of the offence. He said: “I can’t suspend the sentence, it must be immediate, although I am very conscious that it will impact on your life and your children. That is the least I can impose given my duty and what the public must view as a very serious offence.”

But he did reduce the amount of time Wilkinson will serve in prison due to his pleas, his character references and his work ethic.

Tom Moran, defending, said that Wilkinson had retrained as an offshore worker after he had been attacked working as a taxi driver.

“He wanted to be able to support his wife and three young children and he was working away providing for his family on one such occasion when his wife started a relationship with Mr Dent,” he said. “The relationship became serious and the defendant separated from his wife. That gave rise to a large amount of animosity and hostility.”

He said Wilkinson did not know that Mr Dent was going to be at the school and just wanted to enjoy the play like the other parents who attended. Wilkinson admitted wounding and a public order offence.

Back to le future in Mali: French neo-colonialism looms over Africa?

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Malians hoping French troops have arrived to save them from Islamists may see other objectives revealed. France views Mali as a promising source of uranium and oil, and part of a geopolitical game, say observers.

Middle-East access and pushing China out of the African market are apparently in French sights.

Once the world’s second-largest colonial empire, France may be striving to regain influence in its former African colonies, the Mali operation being part of such policy. France was one of the first to jump in and send its warplanes against the regime in Libyan civil war, and now it is the only Western power that has sent troops to aid the struggling Malian army.

Indeed, France is the only European country that has a network of military bases with thousands of troops stationed in Africa, and its economic ties in the region are also well-established.

But neither French nor Western influence in Africa is undisputed, with local groups and international players challenging France’s power and forcing it to take strategic steps to ensure it retains its position.

Direct military intervention serves as a way to secure the long-term profit for the French government, and French troops have intervened in Africa 50 times since the official decolonization.

“They’re attempting to militarize huge sections of Africa so they’re able to monopolize the access to the resources which are there,” Ceasefire magazine associate editor Adam Elliott-Cooper told RT.

Not only is Mali the third-largest gold producer, it also possesses untapped oil and mineral reserves, which have stirred foreign interest. But especially attractive are the country’s potential uranium deposits.

“In the long term, France has interests in securing resources in the Sahel — particularly oil and uranium, which the French energy company Areva has been extracting for decades in neighboring Niger,” Katrin Sold of the German Council on Foreign Relations said, as quoted by DW.de. The Sahel is a roughly 1000km-wide belt on the border of the Sahara, which passes through central Mali.

Nearly 80 per cent of France’s energy generated by 60 nuclear power plants is dependent on African uranium.

In order to secure these resources France clearly needs to maintain security and pro-French rule in the region. It launched a military operation as soon as the Malian situation began to get out of hand.

France has also ordered Special Forces to protect uranium sites in neighboring Niger, a military source told Reuters on Thursday.

Getting its neo-colonial way

With all the talk about Western interests in the region, it is often overlooked that such countries as Mali remain among the poorest nations of the world, despite their abundant natural resources.

People in Mali have now welcomed French troops as somebody to save them from Islamic militants, but they have never been promised any profits from French economic ambitions in the country, former Tunisian ambassador to UNESCO Mezri Haddad told RT.

“It is OK is you come and use resources, but then it’s logical that locals profit as well and that those riches go to improve their life. But that’s not the case — this way is wild, a kind of slavery,” Haddad said.

Decolonization is far from over, and France is just one of the parties having a keen interest in African Neo-colonialism, Bruno Drweski of the French National Institute of Oriental Languages and Civilizations told RT.

“Apart from economic there’s also a strategic importance: this part of Africa opens routes to the Red Sea and the Middle East. Britain and France have for centuries fought over it. It’s like a remake, but with many others involved,” Drweski argued.

Even though the French public and media have not been particularly happy over the military operation aiming for “the total re-conquest of Mali” in the words of France’s defense minister, few French sources want to draw parallels with the African colonial past.

Former French President Valery Giscard d’Estaing was one of those few openly speaking against the perceived French Neo-colonialism.

“I want to prevent a course of action that could be of a Neo-colonial nature in Mali,” d’Estaing told Le Monde, urging French government to stick to “supplying logistic support” to Mali, instead of surging the fighting and the airstrikes, which could lead to “meaningless destruction” and dire “political consequences.”

Western nations are seizing every opportunity leading to gain more control over Africa, even making use of such factors as “a little more terrorism” in the region, as British anthropologist Jeremy Keenan labeled it in his book The Dark Sahara.

Not everyone in France agrees, though, that all such means are justifiable.

“Francois Hollande has seen fit to justify French military intervention in Mali with the drama of the hostages in Algeria which left 30 dead according to official sources. Far from justifying France’s neocolonial intervention, it condemns it,” France’s New Anti-Capitalist Party said in a statement.

Rivaling China

In recent years, China has been forging successful economic partnerships throughout Africa, entering the region with the benefit of never having been a colonial power there. This is a clear threat to Western energy interests.

The French are following in the footsteps of US military’s Africa Command (AFRICOM), Adam Elliott-Cooper told RT. Created in 2007, it served the militarization of Africa aimed to control more energy resources.

Vice-Admiral Robert T. Moeller has openly declared AFRICOM’s guiding principle as protecting “the free flow of natural resources from Africa to the global market.” Challenging US interests in the region is China, he added.

Echoing Moeller is the French Finance Minister Pierre Moscovici, who urged French companies “to go on the offensive and fight the growing influence of rival China for a stake in Africa’s increasingly competitive markets.”

It is widely-acknowledged that “this part of the world was escaping from France so [the French want] to remain present in the region,” Philippe Moreau-Defarges of the IFRI think-tank was quoted by AFP.

Sanders Votes Against Weak Filibuster Reform

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WASHINGTON – January 25 – Sen. Bernie Sanders (I-Vt.) issued the following statement tonight after he voted against watered-down changes in Senate rules on filibusters:

“The rule changes adopted today are a step forward in making the operations of the Senate more efficient and expeditious. They are not enough.

“Most Americans grew up believing that in America the majority rules. That is not the case in the Senate. For many years now, especially since President Obama has been in office, it has taken 60 votes to pass any significant piece of legislation. When Lyndon Johnson was majority leader in the 1950s, he filed cloture to end a filibuster only once. Majority Leader Reid has filed cloture 390 times.

“This country faces major crises in terms of the economy and unemployment, the deficit, global warming, health care, campaign finance reform, education and a crumbling infrastructure — to name a few. In my view, none of these problems will be effectively addressed so long as one senator can demand 60 votes to pass legislation.

“The Senate is not the House and the minority party must be treated with respect and given the opportunity to offer amendments and make their case in opposition. A minority must not, however, be allowed to permanently obstruct the wishes of the majority. That is not democracy. That is a perversion of democracy.

“In my view, if a senator or a group of senators are strenuously opposed to legislation they have the right and duty to come to the floor and, for as long as they want, engage in a talking filibuster by explaining to the American people the reasons for their objection. They should not, however, continue to have the right to abuse arcane Senate rules to block a majority of senators from acting on behalf of the American people.”

Sanders Votes Against Weak Filibuster Reform

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WASHINGTON – January 25 – Sen. Bernie Sanders (I-Vt.) issued the following statement tonight after he voted against watered-down changes in Senate rules on filibusters:

“The rule changes adopted today are a step forward in making the operations of the Senate more efficient and expeditious. They are not enough.

“Most Americans grew up believing that in America the majority rules. That is not the case in the Senate. For many years now, especially since President Obama has been in office, it has taken 60 votes to pass any significant piece of legislation. When Lyndon Johnson was majority leader in the 1950s, he filed cloture to end a filibuster only once. Majority Leader Reid has filed cloture 390 times.

“This country faces major crises in terms of the economy and unemployment, the deficit, global warming, health care, campaign finance reform, education and a crumbling infrastructure — to name a few. In my view, none of these problems will be effectively addressed so long as one senator can demand 60 votes to pass legislation.

“The Senate is not the House and the minority party must be treated with respect and given the opportunity to offer amendments and make their case in opposition. A minority must not, however, be allowed to permanently obstruct the wishes of the majority. That is not democracy. That is a perversion of democracy.

“In my view, if a senator or a group of senators are strenuously opposed to legislation they have the right and duty to come to the floor and, for as long as they want, engage in a talking filibuster by explaining to the American people the reasons for their objection. They should not, however, continue to have the right to abuse arcane Senate rules to block a majority of senators from acting on behalf of the American people.”

Second Consecutive Week Of Outflows From US Equities

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It is funny what one finds when one actually looks at the data behind the headlines, such as in this case the trumpeted amazing return of investors to the US stock market. Because what one does find is that after that one blistering week after the new year, in which wealthy individuals dumped cash they had put aside (for lack of knowledge of what the dividend tax would be in 2013), we now have, for the second week in a row, seen a material outflow from US equity funds as tracked by Lipper, bringing the total two week outflow from the domestic equity sector to some $5.8 billion. Oh, and the great non-rotation out bonds continues with some $8.5 billion pumped into taxable bond funds and $2.3 billion into municipal bonds in the past two weeks.

From the week ended January 16 (source):

And from the week ended Januar 23 (source):

“But the bulk of the outflows is from ETF outflows” the purists will say. Why yes, but remember – the only inflows in the period 2009-2012 was courtesy of ETFs. After all that was being paraded non stop to mute out the fact that some $300 billion got pulled out of equity mutual funds: “mutual funds are dinosaurs” we heard over and over. Turns out that is no longer the case. Or maybe it is time for the spin to enter the rinse cycle.

Either way one thing is clear – the cash influx into bond funds has not stopped and will not stop, which means there is no rotation out of bonds and into stocks, and the only rotation is out of marginal money market funds into stocks, which in turn is a function of some residual cash rotation out of TAG accounts which no longer have an infinite FDIC insurance. In other words, the inflows into the non-ETF part of market will end in a week or two tops. At that point one can only hope the ETF bleeding ends or else there will be nothing to offset what will be an overall outflow from equity funds.

From Reuters:

Investors in stock mutual funds continued to favor international stocks while still directing a substantial amount of cash toward U.S. stocks. Mutual funds that specialize in U.S. stocks attracted $1.42 billion, while those that hold international stocks attracted $2.24 billion.

The strong turnout for stock mutual funds again failed to apply to ETFs overall. Stock ETFs had total outflows of $735 million, as investors pulled roughly $3.1 billion from ETFs that hold U.S. stocks. Those that hold international stocks, however, stood out with inflows of $2.35 billion.

Investors continued to pull money out of the SPDR S&P 500 ETF, with $4.36 billion leaving the fund in the latest week.

“Apple is a big holding in the fund, so this could be a vote against Apple,” Tjornehoj said. Shares in Apple,, which is the world’s most valuable publicly traded company, fell 8 percent on Wednesday after the company recorded quarterly revenue that slightly missed expectations while sales of its iPhone came in weak.

ETFs are generally believed to represent the investment behavior of institutional investors, while mutual funds are thought to represent the retail investor.

Your rating: None

Prosecutors suspect $3mln embezzlement in Russian Strategic Missile Forces

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Russia’s Prosecutor General Office has started 13 criminal cases into abuse of office by military commanders during work s to renovate an area which used to house nuclear missile silos.

According to the message posted on the Prosecutor General web-site, the officers allegedly embezzled about 90 million roubles (just under $3 million) from 500 million roubles (over $16 million) allocated for the land restoration.

The 13 criminal cases are against five commanders of missile divisions and two executives from a construction company. The officers are suspected of ‘abuse of office with grave consequences’— an offence that carries up to 10 years in prison, and the businessmen face charges of large-scale embezzlement and commercial bribery, which are punishable with a fine of up to 1 million roubles and up to 12 years in prison.

Prosecutors claim that the company carrying out the work failed to fulfill its obligations to restore the land occupied by the decommissioned missile silos and the military commanders accepted the work without checking the quality. In one particular case the head of a strategic missile unit signed a contract with a company headed by his former subordinate and demanded a 1.5 million rouble ($50,000) kickback to approve the deal. The incidents are reported to have taken place in 16 different regions of the Russian Federation.

Prosecutors claim that they have managed to recover 10 million roubles.

The report is a new episode in a major anti-corruption campaign in the military that started last year and has already caused the replacement of the country’s Defense Minister. President Vladimir Putin sacked Anatoly Serdyukov in early November after four people, including Serdyukov’s close friends, were arrested over a suspected multi-million fraud involving Defense Ministry real estate assets.

Agents of the Federal Investigative Committee have summoned the ex-minister for questioning over the fraud case but he refused to give testimony quoting the article of the constitution that allows a witness not to incriminate himself.

Before his dismissal Serdyukov was the main driving force for the military reform currently under way in Russia, and for this work received praise from the country’s top officials. Former emergencies minister Sergey Shoigu, who replaced Serdyukov as Defense Minister has said the reforms would continue and everything that had been achieved will remain.

Davos Still Pushes Failed Global Vision

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Bio

William K. Black, author of THE BEST WAY TO ROB A BANK IS TO OWN ONE, teaches economics and law at the University of Missouri Kansas City (UMKC). He was the Executive Director of the Institute for Fraud Prevention from 2005-2007. He has taught previously at the LBJ School of Public Affairs at the University of Texas at Austin and at Santa Clara University, where he was also the distinguished scholar in residence for insurance law and a visiting scholar at the Markkula Center for Applied Ethics. Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and general counsel of the Federal Home Loan Bank of San Francisco, and senior deputy chief counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement. Black developed the concept of “control fraud” frauds in which the CEO or head of state uses the entity as a “weapon.” Control frauds cause greater financial losses than all other forms of property crime combined. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae’s former senior management.

Transcript

PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Baltimore. And welcome to this week’s edition of The Black Financial and Fraud Report with Bill Black.

Bill’s an associate professor of economics and law at the University of Missouri—Kansas City. He’s a white-collar criminologist, a former financial regulator, and the author of the book The Best Way to Rob a Bank Is to Own One. And Bill joins us today from Davos, Switzerland.What are you doing in Davos, Bill?BILL BLACK, ASSOC. PROF. ECONOMICS AND LAW, UMKC: I’m part of the Greenpeace counter-Davos event. So Davos has this annual meeting, the World Economic Forum, that brings the wealthiest corporate heads and some key politicians out as well, and they work together and purportedly make the world better–and some people are rather dubious about that. Greenpeace, as a counter-Davos event, gives the Public Eye Award to entities that people vote as the worst corporate entities in the world during that relevant time period. And I was brought out in particular for the award to Goldman Sachs, which focused on Goldman Sachs helping Greece lie about the state of its debt so that it could get into the euro and, you know, the disasters that followed from all of that.But I was asked to talk about more why we have so much fraud, why we have these financial crises, and what role this World Economic Forum plays in actually making the world a worse place instead of what they purport to do, of course, which is make it a better place.JAY: Yeah. So give us a sense of what you said there.BLACK: So I researched what in God’s name the World Economic Forum actually does. And it has two primary products. One is this global competitiveness index, and the second is a global risk report. And I discovered that this competitiveness index is really a glorified expanded version of the Washington consensus. And the Washington consensus, to review a bit on that, was what the IMF and the World Bank and the Bush and Reagan administrations and such agreed should be imposed on Latin America in the context of their debt crisis to ensure that we got repaid, our creditors got repaid. And the central policy of all of that was austerity. And no surprise, the World Economic Forum has been big on pushing austerity in the Eurozone. And we’ve discussed a number of times how that has led to pushing the entire Eurozone into recession in places like Greece, Spain, and Italy, into Great Depression levels of unemployment.But it turns out that Davos does these indicators, these supposed competitiveness indicators, that also pick up a bunch of the things in the Washington consensus. And in particular they push for deregulation and they push for tying compensation of executives to supposed performance. And it turns out both of those things have been central to creating the criminogenic environments that have produced our crises. So instead of making things better, they’ve actually made things much worse. And it’s particularly nasty because the whole purpose of this competitive index is so you can, whatever country you’re in, take the index score for your country and go to your national legislature and say, we need to weaken regulation, we need to give–make it easier to fire employees, because we’re not very competitive compared to whatever neighboring nations are or [crosstalk]JAY: Right. So, to put this in sports terms, this is like international standings of countries in the race to the bottom.BLACK: Exactly. Designed by business for business to make it easy for business leaders to become ever wealthier at the expense of everyone else. Now, I don’t think they intend to make the world a better place for crime, but that is the unintended consequence of what they’re doing–and, of course, in some cases it’s quite intended by some of the business people that are doing it. So it also means that this global competitiveness index is ridiculously embarrassing. So I looked at what they rated, places like Ireland, Iceland, Spain, the United Kingdom, in terms of the soundness of their banking system. It has a separate scale for that. And the way they create this is by just taking surveys of business leaders, which is, of course, not a very good scientific approach in any event. But who was top of the charts back in 2006, 2007? Well, none other than Ireland, the United Kingdom, and Spain, and Iceland not all that far behind. And guess who is today absolute rock-bottom the worst country in the world at 144th ranking? That would be Ireland, the one they claim was the third-best banking system in the world at a time when the Irish banks were actually deeply insolvent. Now they say, oops, sorry, it’s really the worst banking system in the world. And the United Kingdom, which they said was the absolute best banking system in the world, well, almost every large bank in England was insolvent. Well, they’re now 97th in the world.JAY: Right. When you say that this encourages criminal activity, this is because if you tie executive salary compensation to performance, it encourages phony performance. As long as you can make it look on your books like you’ve made money, you get more money. It has no bearing on how sustainable or even how real it is.BLACK: That’s correct. And it’s another weakness of their survey mechanism. You know, it just says something like, do you, your country, tie pay to performance. Well, yeah, supposedly, but in a way that actually encourages fraud because it’s heavily based on short-term reported results, which are easy to pervert through accounting fraud. And that’s exactly what it meant, and that’s exactly why it got those rankings so bad. I mean, the Irish banks, the United Kingdom banks, the Spanish banks, the Icelandic banks were all reporting record profits so that they could goose their bonuses to their executives under their performance plans.And so the theme of the World Economic Forum is, you know, making sure the corporation does well for all the stakeholders. But the reality is that it creates a criminogenic environment in which control frauds flourish. And when control frauds operate, they put a stake in the stakeholder.JAY: Now, is there any sense do you get from the–I don’t know if you had time to spend time talking to people in the official Davos, but do you get any sense that there’s a recognition that this great neoliberal vision they’ve been promoting–obviously for some of their stakeholders it worked very well, ’cause it made them very rich. On the other hand, the global economy’s a complete basket case.BLACK: No. They, in fact, as recently as 2012 did a publication entitled Rethinking the Financial System. They said actually not a whole lot of need to rethink it, because while fraud is extremely negative when it happens, it’s also extremely rare, and you can simply get rid of it through mechanisms like having audits and good governance. And, of course, they have indexesthat purport to do audit and good governance, and no surprise, they said again that places like Ireland and the United Kingdom and Iceland and Spain had superb controls. And there are simply no success stories where–.JAY: And I guess it also works well when the United States, for example, can say what happened simply isn’t fraud, even though I don’t know what else it would be, ’cause it meets every definition, one would think, of fraud in terms of what Goldman and others like them did.BLACK: Absolutely. In fact, the government, through two different agencies, the federal housing finance administration and the Securities and Exchange Commission, has put in former legal pleadings that Goldman Sachs did engage in acts that constituted fraud against both Fannie Mae and Freddie Mac and their own customers.JAY: Thanks very much for joining us, Bill.BLACK: Thank you.JAY: And thank you for joining us on The Real News Network.

End

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.


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Funny Tweets Of The Week

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What a week! Especially if you love or hate Europe. Or America.

Yes, David Cameron announced Tory plans for an EU referendum – despite the risks of the withdrawal method – while across the Pond, Beyonce Barack Obama was sworn in as the 44th President of the United States for a second time, in an unforgettable lip-synched ceremony.

In sport, Joey Barton claimed he was brighter than 97% of Britain, Newcastle United’s team became 97% French, and a teenage ballboy won 97% of Britain’s sympathy after Chelsea player Eden Hazard kicked him (the other 3% consisting of Pat Nevin and the Daily Mail). Lance Armstrong, meanwhile, appeared to be 100% guilty of taking drugs to enhance his performance in his Oprah Winfrey interview.

And in showbiz news, Michael Winner sadly passed away, JJ Abrams was happily revealed as the director of Star Wars 7 and Prince Harry (royalty are showbiz, right?) tackled his often uncomfortable relationship with the media by giving an interview to the media.

Meanwhile, snow continued to dominate the British landscape. Literally.

And once again, we’ve rounded up some of the tweets that made us giggle about all of the above – and more. Enjoy! And remember to stay at least 97% safe in the icy conditions this weekend…

Progressives Trash Senate’s Failure to Get Meaningful Filibuster Reform

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“Most Americans grew up believing that in America the majority rules,” said Sen. Bernie Sanders (I-VT). “That is not the case in the Senate.” (Image: via C-SPAN)Following a final agreement passed in the Senate on Thursday evening, progressives slammed the failure to achieve the necessary and ‘meaningful’ reforms widely called for to unlock the debilitating hold the filibuster has had on the chamber in recent years.

Abused by a minority Republican party unyielding in its strategy to block any progressive legislation with which they disagree, critics say Senate Majority Leader Harry Reid’s failure to push through a return of the “talking filibuster” crushes most hope for progress on the nation’s most pressing problems.

“This country faces major crises in terms of the economy and unemployment, the deficit, global warming, health care, campaign finance reform, education and a crumbling infrastructure,” said Senator Bernie Sanders (I-VT), explaining why he voted against the measure’s weak provisions.

“In my view, none of these problems will be effectively addressed so long as one senator can demand 60 votes to pass legislation. The rule changes adopted today … are not enough.”

Democratic Senator Tom Harkin of Iowa went on record to say that the meager reforms will make passage of meaningful legislation in the Senate nearly impossible.

Harkin told reporters: “I said to President Obama back in August … and I said to him the night before the election, I said to him, ‘Look, if you get reelected, if we don’t do something significant about filibuster reform, you might as well take a four-year vacation,'” 

“This is not significant,” Harkin added.

Adam Green, co-founder of the Progressive Change Campaign Committee, whose members had pushed for stronger reforms called the Senate’s decision one “based on fear.” The rules passed, he said, “will ultimately hurt millions of people who would have been helped by progressive bills that Republicans are sure to filibuster.”

A group called Fix the Senate Now, which also rallied behind stronger measures, called the result a “missed an opportunity to restore accountability and deliberation to the Senate, while not raising the costs of obstruction.”

“The incremental ‘reforms’ in the agreement do not go nearly far enough to deliver meaningful change,” the group said.

Digby, political blogger at the Campaign for America’s Future, summed up the deal by saying: “Better than nothing, but still not much. The story of our time.”

And others put the focus directly on Reid, who had once threatened to exert all efforts and use all options at his disposal to see the strong changes enacted.

“My friend Harry Reid, the senator from Searchlight, NV, has gone missing in the fight for filibuster reform,” said Common Cause President Bob Edgar. “The deal he and Sen. McConnell have struck allows individual senators to continue blocking debate and action by the entire body and to do so without explaining themselves to their colleagues or the American people. This is not the Senate of debate and deliberation our founders envisioned.”

Senator Sanders seemed to agree with Edgar’s last sentiment. In his closing floor statement, Sanders told his fellow Senators and those watching:

Most Americans grew up believing that in America the majority rules. That is not the case in the Senate.

For many years now, especially since President Obama has been in office, it has taken 60 votes to pass any significant piece of legislation. When Lyndon Johnson was majority leader in the 1950s, he filed cloture to end a filibuster only once. Majority Leader Reid has filed cloture 390 times.

The Senate is not the House and the minority party must be treated with respect and given the opportunity to offer amendments and make their case in opposition. A minority must not, however, be allowed to permanently obstruct the wishes of the majority. That is not democracy. That is a perversion of democracy.

In my view, if a senator or a group of senators are strenuously opposed to legislation they have the right and duty to come to the floor and, for as long as they want, engage in a talking filibuster by explaining to the American people the reasons for their objection. They should not, however, continue to have the right to abuse arcane Senate rules to block a majority of senators from acting on behalf of the American people.

And yet, it appears, that is exactly what they’ll get the opportunity to do.

Lib Dem MP ‘Condemned’ By Own Party For Criticising Israel Ahead Of Holocaust Memorial Day

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A Liberal Democrat MP has been condemned by his own party for his “use of unacceptable language” in criticising Israel’s treatment of Palestinians on the same day as pledging his commitment to Holocaust Memorial Day.

In a statement on his website, Bradford East MP David Ward said he had signed a Book of Commitment in the House of Commons “honouring those who died during the Holocaust.”

david ward facebook

David Ward is Lib Dem MP for Bradford East

In the same statement, which has since been taken down, he commented:

“Having visited Auschwitz twice — once with my family and once with local schools — I am saddened that the Jews, who suffered unbelievable levels of persecution during the Holocaust, could within a few years of liberation from the death camps be inflicting atrocities on Palestinians in the new State of Israel and continue to do so on a daily basis in the West Bank and Gaza.”

A Lib Dem spokesman told the BBC the remarks, which come ahead of Sunday’s Holocaust Memorial Day, were a matter of “deep regret”.

He said: “This is a matter we take extremely seriously. The Liberal Democrats deeply regret and condemn the statement issued by David Ward and his use of language which is unacceptable.”

Around six million Jews were gassed, starved and shot dead throughout the Holocaust.

While the Jewish Chronicle said Ward had “compared modern Israel to the Nazi regime”, blogger Mark Valladares at the Liberal Democrat Voice welcomed “his attempt to demonstrate some respect towards both sides in this seemingly never-ending dispute.”

He writes: “As usual, in any matter related to the Israel/ Palestine debate, elements of the pro-Israel lobby, or troublemakers… have chosen to interpret these remarks as being a direct comparison of the holocaust with modern events in Gaza and the West Bank.

“If you’re minded to do so, you probably will. On the other hand, if you lean towards a pro-Palestinian position, you might welcome any recognition by a politician that the Israeli government is behaving in an unacceptable manner.

“For me, David’s words act as a reminder that some pretty dreadful wrongs have been committed against both sides, and suggest that past events should influence future behaviour.”

Karen Pollock, the chief executive of the Holocaust Educational Trust told the Jewish Chronicle Ward had “abused the memory” of the victims of the Nazis.

She said: “I am deeply saddened that at this sombre time, when we remember those who were murdered by the Nazis, Mr Ward has deliberately abused the memory of the Holocaust causing deep pain and offence.

“These comments are sickening and unacceptable and have no place in British politics.”

The incident is already drawing comparions to Baroness Jenny Tonge, who resigned the Lib Dem whip in the House of Lords in February last year, after refusing to apologise for claiming Israel would not “last forever”.

The Liberal Democrat peer, who once said she would consider becoming a suicide bomber if she were Palestinian, was roundly criticised for the remarks.

Speaking at an event at Middlesex University, Baroness Tonge said Israel would one day lose the support of the United States and would then “reap what they have sown”.

“Beware Israel,” she said. “Israel is not going to be there forever in its present performance. One day the United States of America will get sick of giving £70 billion a year to Israel.”

Huffington Post UK has sought comment from Ward’s office.

  • An ultra Orthodox Jewish man visits the Yad Vashem Holocaust Museum in Jerusalem, Wednesday, April 18, 2012. Israel will be marking its annual remembrance day for the six million Jews killed by the Nazis in World War II on Thursday. (AP Photo/Ariel Schalit)

  • An ultra Orthodox Jewish man looks at a pile of books on display at the Yad Vashem Holocaust Museum in Jerusalem, Wednesday, April 18, 2012. (AP Photo/Ariel Schalit)

  • Two ultra Orthodox Jewish men visit the Yad Vashem Holocaust Museum in Jerusalem, Wednesday, April 18, 2012. (AP Photo/Ariel Schalit)

  • Two ultra Orthodox Jewish men visit the Yad Vashem Holocaust Museum in Jerusalem, Wednesday, April 18, 2012. (AP Photo/Ariel Schalit)

  • A Holocaust survivor lays flowers next to the names of concentration camps during the annual ceremony on Holocaust Remembrance Day at the Yad Vashem memorial in Jerusalem, Thursday, April 19, 2012. Israel is marking its annual remembrance day for the six million Jews killed by the Nazis in World War II. (AP Photo/Ariel Schalit)

  • Israelis pause during a two-minute siren in memory of victims of the Holocaust in the market in Jerusalem, Thursday, April 19, 2012. (AP Photo/Bernat Armangue)

  • Israelis pause during a two-minute siren in memory of victims of the Holocaust in the market in Jerusalem, Thursday, April 19, 2012. (AP Photo/Bernat Armangue)

  • Israelis attend the opening ceremony of Holocaust Martyrs and Heroes Remembrance Day at the Yad Vashem Holocaust Memorial in Jerusalem, Wednesday, April 18, 2012. (AP Photo/Sebastian Scheiner)

  • Israelis attend the opening ceremony of Holocaust Martyrs and Heroes Remembrance Day at the Yad Vashem Holocaust Memorial in Jerusalem, Wednesday, April 18, 2012. (AP Photo/Sebastian Scheiner)

  • Israeli soldiers stand at attention during the opening ceremony of Holocaust Martyrs and Heroes Remembrance Day at the Yad Vashem Holocaust Memorial in Jerusalem, Wednesday, April 18, 2012. (AP Photo/Sebastian Scheiner)

  • Israeli Prime Minister Benjamin Netanyahu attends the opening ceremony of the Holocaust Martyrs and Heroes Remembrance Day at the Yad Vashem Holocaust Memorial in Jerusalem, Wednesday, April 18, 2012. (AP Photo/Sebastian Scheiner)

  • Israeli Prime Minister Benjamin Netanyahu speaks at the opening ceremony of Holocaust Martyrs and Heroes Remembrance Day at the Yad Vashem Holocaust Memorial in Jerusalem, Wednesday, April 18, 2012. (AP Photo/Sebastian Scheiner)

Frontrunning: January 25

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  • Fed Pushes Into ‘Uncharted Territory’ With Record Assets (BBG)
  • Next up in the currency wars: Korea – Samsung Drops on $2.8 Billion Won Profit-Cut Prediction (BBG)
  • China Warns ‘Hot Money’ Inflows Possible on Easing From Abroad (Bloomberg)
  • BOJ Shirakawa affirms easy policy pledge but warns of costs (Reuters)
  • Merkel Takes a Swipe at Japan Over Yen (WSJ)
  • Wages in way of Abe’s war on deflation (FT)
  • Italian PM under fire over bank crisis (FT)
  • Senior officials urge calm over islands dispute (China Daily)
  • Spain tries to peel back business rules (FT)
  • Rifts Over Cyprus Bailout Feed Broader Fears (WSJ)
  • Soros Says the Euro Is Here to Stay as Currency War Looms (BBG)
  • Deutsche Bank Debt Salesmen Said to Go Amid Pay Overhaul (BBG)
  • Cameron pitches new deal as good for EU (FT)

Overnight Media Digest

WSJ

* U.S. President Barack Obama nominated a former prosecutor turned white-collar criminal defender, Mary Jo White, as his choice for top U.S. securities regulator.

* Microsoft’s quarterly earnings slipped 3.7 percent as the software giant reported weaker sales in its business and entertainment divisions, though revenue in its core Windows business strengthened.

* Citigroup Inc’s private bank has decided to pull its $187 million investment from SAC Capital Advisors LP, the latest in a string of client defections that have occurred amid scrutiny of the hedge-fund firm.

* JP Morgan will not be trying ‘staple financing’ in the potential Dell deal, a possible ramification of a court decision criticizing what was once a common practice on Wall Street.

* Samsung Electronics Co on Friday said its fourth-quarter profit rose 76 percent to a record high on strong smartphone sales and higher margins in its chip business.

* Morgan Stanley Chairman and Chief Executive James Gorman is expected to take a second straight annual pay cut for 2012, as the securities firm continues to struggle to get back on track.

* Casino operator Las Vegas Sands Corp has stopped executing international money transfers for its high-rolling customers and is overhauling its compliance procedures as it faces scrutiny from U.S. and international regulators, people familiar with the matter said.

* Bristol-Myers Squibb Co agreed to pay $80 million to settle cases involving 15 patients killed or hurt during company-sponsored testing of an experimental drug for hepatitis C.

FT

BARCLAYS EXECUTIVES FACE MOUNTING LIBOR PRESSURE Top executives at Barclays were aware the bank was manipulating its submissions to Libor rate-setting panel in November 2011, almost a year earlier than previously disclosed, emails suggested. (link.reuters.com/tud55t)

OSBORNE STICKS TO AUSTERITY PLAN Finance minister George Osborne will not be diverted from his austerity plan even if data on the strength of British economy disappoints. (link.reuters.com/xud55t)

GOVERNMENT TO DELIVER CHILDCARE BOOST Britain’s coalition government is planning to spend 1.5 billion pounds on a package of measures to help families cope with nursery fees. (link.reuters.com/vud55t)

FEARS RAISED OVER ECB FUNDING SCHEME Senior bankers are becoming increasingly concerned about the European Central Bank’s special longer-term funding scheme, saying that it could encourage the creation of a two-tier banking market. (link.reuters.com/dyd55t)

RETAILERS MAKE APPEAL ON TAX AVOIDANCE High street retailers said the government needed to take action to stop tax avoidance by multinational companies. (link.reuters.com/bed55t)

RIM BOOSTED BY LENOVO INTEREST Lenovo has signalled it could be interested in buying Research In Motion, lifting the shares in the troubled Canadian maker of BlackBerry smartphones

NYT

* U.S. President Barack Obama tapped Mary Jo White, a former United States attorney turned white-collar defense lawyer, to lead the Securities and Exchange Commission. He also renominated Richard Cordray as director of the Consumer Financial Protection Bureau.

* Jill Sommers, a Republican regulator overseeing the investigation into MF Global’s collapse, has abruptly decided to depart the Commodity Futures Trading Commission, the agency said.

* After a year of mixed financial performance at Morgan Stanley, the firm’s chief executive, James Gorman, is expected to take a second annual pay cut.

* AT&T sold a record number of smartphones over the holiday season, but its quarterly earnings took a hit from pension costs and Hurricane Sandy.

* Microsoft’s biggest product in decades, Windows 8, helped lift sales of the company’s flagship operating system business, but not enough to rejuvenate overall growth.

* Greenhill reported a 4 percent drop in advisory revenue last year, a week after larger rivals JPMorgan Chase & Co and Morgan Stanley posted much larger declines.

* HCA Holdings, the largest profit-making hospital chain in the United States, was ordered to pay $162 million after a judge ruled that it had failed to abide by an agreement to make improvements to dilapidated hospitals that it bought in the Kansas City area several years ago.

* A federal appeals court in the United States tossed out $172 million in damages that Mattel had been ordered to pay MGA Entertainment, the maker of Bratz dolls. It was the latest move in a bitter nine-year legal dis

Canada

THE GLOBE AND MAIL

* An executive from a Quebec engineering firm has testified that many of the province’s top engineering companies, including the troubled giant SNC Lavalin Group Inc, colluded to pay political kickbacks and to win fixed construction contracts.

Michel Lalonde, the president of Genius Conseil, told Quebec’s construction inquiry on Thursday that a list of top companies were complicit in the scheme to secure road and sewer design and construction surveillance contracts by sending bribes and kickbacks to the political party headed by the city’s mayor.

* Shawn Atleo, national chief of Assembly of First Nations, said any divisions in the aboriginal community are trumped by shared objectives, including ending “the status quo”, and that many of the community’s goals are similar to those of the rest of Canadians.

Reports in the business section:

* Talisman Energy Inc plans to slash its general and administrative (G&A) costs by “at least 20 per cent over all”, Helen Wesley, the company’s executive vice president of corporate services, told the CIBC Whistler Institutional Investor Conference on Thursday.

* Agrium Inc raised its fourth-quarter earnings estimate based on robust grain and oilseed prices that are helping boost demand for its fertilizers and other products. The Calgary-based company said it expects fourth-quarter earnings to be slightly above C$2 per share, compared with its previous guidance of C$1.50 to C$1.90.

NATIONAL POST

* Facing drastically falling oil revenue, Alberta Premier Alison Redford set the stage for serious spending cuts and possible tax hikes during a televised fireside chat on Thursday.

Redford blamed a “bitumen bubble” and warned Albertans about austere times to come. The government has forecast a deficit in the current fiscal year of C$3 billion.

FINANCIAL POST

* At least one Calgary oil executive is appealing to Canadian pocket books as the U.S. state department decides the fate of TransCanada Corp’s Alberta-to-Texas Keystone XL pipeline. Export constraints on Alberta heavy oil production are costing each Canadian C$1,200 per year, Cenovus Energy Inc CEO Brian Ferguson said on Thursday.

* Canadian wireless carriers must make changes to their networks and systems to support 911 emergency text messages from hearing and speech impaired persons, the federal telecom regulator said on Thursday. The service would only be provided to the hearing and speech impaired who have pre-registered for it with their wireless carrier, the Canadian Radio-television and Telecommunications Commission (CRTC) said.

China

CHINA SECURITIES JOURNAL

— China will build six control standards, including PM2.5, in 113 cities and will release the monitoring data before the end of December this year, Environment Minister Zhou Shengxian said.

— The number of Chinese mobile phone users reached 1.11 billion as of the end of 2012, according to Ministry of Industry and Information Technology data released on Thursday.

— China Financial Futures Exchanges has approved the application of account opening from several QFII institutions.

CHINA DAILY (www.chinadaily.com.cn)

— Alibaba Group Holdings, China’s largest e-commerce company, plans to join hands with partners to build a logistics network across China that can support 100 billion yuan worth of transactions a year within the next decade.

— China is expected to lead emerging economies in spending on consumable products, with an estimated average annual increase in total consumer spending of 15 percent every year to 2016, according to a report released by the Economist Intelligence Unit and U.K. research firm Mintel.

SHANGHAI DAILY

— Shanghai expects to set up China’s first free trade zone in Waigaoqiao in Pudong New Area as the city bids to become a global trade hub by 2020, a senior official said. Unlike a bonded area, a free trade zone offers businesses lower taxes, a more liberal currency exchange and better efficiency due to less supervision.

CHINA BUSINESS NEWS

— New bank loans in January are expected to reach between 1 trillion yuan and 1.2 trillion yuan as the economy rebounds, according to market participants. Total new loans for 2013 are expected to reach 8.5 trillion yuan to 9 trillion yuan.

Fly On The Wall 7:00 Market Snapshot

ANALYST RESEARCH

Upgrades

AMC Networks (AMCX) upgraded to Equal Weight from Underweight at Morgan Stanley
Autodesk (ADSK) upgraded to Conviction Buy from Sell at Goldman
eBay (EBAY) upgraded to Outperform from Market Perform at Bernstein
EQT Midstream Partners (EQM) upgraded to Outperform from Neutral at Credit Suisse
Horizon Bancorp (HBNC) upgraded to Outperform from Market Perform at Raymond James
JPMorgan (JPM) upgraded to Buy from Hold at Deutsche Bank
KLA-Tencor (KLAC) upgraded to Hold from Sell at Deutsche Bank
NetEase.com (NTES) upgraded to Buy from Neutral at UBS
QLogic (QLGC) upgraded to Equal Weight from Underweight at Morgan Stanley
STMicroelectronics (STM) upgraded to Outperform from Neutral at Exane BNP Paribas
Sony (SNE) upgraded to Buy from Neutral at BofA/Merrill
Tiffany (TIF) upgraded to Overweight from Neutral at HSBC
Union First Market (UBSH) upgraded to Outperform from Neutral at RW Baird

Downgrades

Canadian Pacific (CP) downgraded to Sell from Hold at Canaccord
City National (CYN) downgraded to Neutral from Buy at SunTrust
Dime Community (DCOM) downgraded to Equal Weight from Overweight at Barclays
Flextronics (FLEX) downgraded to Neutral from Buy at UBS
Flowserve (FLS) downgraded to Buy from Strong Buy at CL King
Ford (F) downgraded to Equal Weight from Overweight at Barclays
Goldman Sachs (GS) downgraded to Hold from Buy at Deutsche Bank
Goldman Sachs (GS) downgraded to Neutral from Buy at Citigroup
Hanmi Financial (HAFC) downgraded to Market Perform from Outperform at FBR Capital
IAMGOLD (IAG) downgraded to Neutral from Buy at BofA/Merrill
Janus Capital (JNS) downgraded to Sell from Neutral at Citigroup
Janus Capital (JNS) downgraded to Underperform from Neutral at Credit Suisse
Medtronic (MDT) downgraded to Hold from Buy at Wunderlich
Noble Corp. (NE) downgraded to Hold from Buy at Jefferies
Scripps Networks (SNI) downgraded to Underweight from Equal Weight at Morgan Stanley
Select Comfort (SCSS) downgraded to Equal Weight from Overweight at Barclays
Skullcandy (SKUL) downgraded to Neutral from Overweight at Piper Jaffray
United Continental (UAL) downgraded to Underperform from Neutral at BofA/Merrill
Virginia Commerce (VCBI) downgraded to Market Perform from Outperform at FBR Capital

Initiations

Accenture (ACN) initiated with an Overweight at Evercore
Actavis (ACT) initiated with an Overweight at Morgan Stanley
Amazon.com (AMZN) initiated with a Buy at ISI Group
Aon Corp. (AON) initiated with a Market Perform at Wells Fargo
BioMed Realty (BMR) initiated with a Neutral at Goldman
BioScrip (BIOS) initiated with a Buy at SunTrust
Boston Properties (BXP) initiated with an Overweight at Evercore
Brown & Brown (BRO) initiated with a Market Perform at Wells Fargo
Forestar Group (FOR) initiated with a Buy at DA Davidson
Marsh & McLennan (MMC) initiated with an Outperform at Wells Fargo
Park-Ohio (PKOH) initiated with an Outperform at Imperial Capital
Red Hat (RHT) initiated with an Outperform at Northland Securities
Starz (STRZA) initiated with a Sell at Stifel Nicolaus
Starz (STRZA) initiated with an Underweight at Evercore

HOT STOCKS

AT&T (T) sees FY13 EPS growth to be upper-single digits or higher
Consensus for FY13 revenue is $128.3B
Sees FY13 consolidated margins to be stable
Starbucks (SBUX) targets opening of about 1,300 net new stores globally in FY13
Expects to open 1,500 new stores in U.S. over next five years
Said China a ”significant market opportunity,” expects to have 1,500 stores there by 2015
Court of Appeals agreed with Mattel (MAT), verdict, damages on MGA’s claims reversed
Belkin to buy Cisco’s (CSCO) home networking unit
Juniper (JNPR): Trends driving network investment in cloud/mobility intact
Sees improved momentum in routing in 2013 in Europe and U.S.
Expects to expand FY13 operating margins
City National (CYN) expects net income to grow ‘very modestly’ in 2013
US Airways (LCC) reached tentative agreement with flight attendants

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
KLA-Tencor (KLAC), Synaptics (SYNA), QLogic (QLGC), ResMed (RMD), Rambus (RMBS), Tempur-Pedic (TPX), Juniper (JNPR), Microsoft (MSFT), Cirrus Logic (CRUS)

Companies that missed consensus earnings expectations include:
Key Technology (KTEC), E-Trade (ETFC), Sterling Financial (STSA), AT&T (T)

Companies that matched consensus earnings expectations include:
Western Alliance (WAL), IBERIABANK (IBKC), Starbucks (SBUX)

NEWSPAPERS/WEBSITES

U.S. electricity producers have increased their use of natural gas now that technological advances have unlocked vast amounts of the fuel in shale rock formations. But executives at some top utilities are wary of relying too heavily on natural gas to make electricity, concerned that its current low price may not last, the Wall Street Journal reports
As Samsung Electronics (SSNLF) and Apple (AAPL) attempt to defend their dominance in the smartphone market, the latest data show China’s Huawei Technologies Co. ranked third in terms of market share for the first time, an indication that a rapid increase of smartphone users in China and other emerging markets may be starting to alter the global landscape, the Wall Street Journal reports
Innovation Network Corp. of Japan, a Japanese state-backed fund, wants a Nissan Motor Co. (NSANY) and NEC Corp. JV to buy Sony’s (SNE) lithium-ion battery unit to prevent rivals in China and Taiwan from getting its technology as the TV maker looks to offload non-core businesses, the Daily Yomiuri said, Reuters reports
Lockheed Martin (LMT) is challenging the U.S. government in court over $13.6M in research tax credits in a case that tests the often unclear line between research and production, with future R&D claims by other companies possibly at stake, Reuters reports
Fed Chairman Bernanke’s unprecedented bond buying pushed the Fed’s balance sheet to a record $3T as he shows no sign of softening his effort to bring down 7.8% unemployment, Bloomberg reports
Over half of the $18T in national daily trading of energy swaps has moved to futures exchanges from the over-the-counter market in response to the U.S. regulatory overhaul aimed at increasing transparency–Dodd-Frank–following the 2008 financial crisis, Bloomberg reports

SYNDICATE

Adecogro (AGRO) files to sell 8.7M shares of common stock for holders
Anthera Pharmaceuticals (ANTH) files to sell common stock
ArrowHead Research (ARWR) files to sell common stock and warrants
BG Medicine (BGMD) enters $12M common stock purchase agreement with Aspire Capital
Bright Horizons (BFAM) 10.1M share IPO priced at $22.00
Chuy’s (CHUY) 4.5M share Secondary priced at $25.00

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The President of Perpetual War

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Four years into his presidency, Barack Obama’s political formula should be obvious. He gives fabulous speeches teeming with popular liberal ideas, often refuses to take the actions necessary to realize those ideas and then banks on most voters, activists, reporters and pundits never bothering to notice – or care about – his sleight of hand.

Whether railing on financial crime and then refusing to prosecute Wall Street executives or berating health insurance companies and then passing a health care bill bailing out those same companies, Obama embodies a cynical ploy – one that relies on a celebrity-entranced electorate focusing more on TV-packaged rhetoric than on legislative reality.

Never was this formula more apparent than when the president discussed military conflicts during his second inaugural address. Declaring that “a decade of war is now ending,” he insisted that he “still believe(s) that enduring security and lasting peace do not require perpetual war.”

The lines generated uncritical applause, much of it from anti-war liberals who protested against the Bush administration. Living up to Obama’s calculation, few seemed to notice that the words came from the same president who is manufacturing a state of “perpetual war.”

Obama, let’s remember, is the president who escalated the Afghanistan War and whose spokesman recently reiterated that U.S. troops are not necessarily leaving that country anytime soon. He is the president who has initiated undeclared wars in Pakistan, Yemen, Somalia and Libya. He is also the president who, according to data from the Bureau of Investigative Journalism, has launched more than 20,000 air strikes–and those assaults show no sign of stopping.

We know that latter point to be the true because just days before Obama’s inaugural address declaring an end to war, the Washington Post reported that the administration’s new manual establishing “clear rules” for counterterrorism operations specifically creates a “carve-out (that) would allow the CIA to continue” the president’s intensifying drone war.

That’s the “perpetual war,” you’ll recall, in which Obama asserts the extra-constitutional right to compile a “kill list” and then order bombing raids of civilian areas in hopes of killing alleged militants – including U.S. citizens.

According to a study by the New America Foundation, roughly one in five of those killed by such strikes are civilians. However, even that troubling number may understate the situation. That’s because, as the New York Times previously reported, the Obama administration “counts all military-age males in a strike zone as combatants” even though, according to a CIA official, Obama aides “are not really sure who they are.”

Obama partisans’ typical riposte to these horrifying truths is to first and foremost attack the messenger. As just one example, a confidante of Obama’s national security director recently berated war critics as “Cheeto-eating people in the basement working in their underwear.”

These same partisans then typically blurt out two words: national security. But the argument that the president’s drone war is protecting America is as flip as it is inaccurate.

That’s the conclusion of a new analysis by the Council on Foreign Relations – an establishmentarian group that cannot be dismissed with insults about snack food, subterranean dwelling and tighty-whities. Citing a concurrent increase in drone strikes and terrorists in Yemen, CFR says there is a predictable “blowback” effect whereby bombings result in “heightened anger toward the United States and sympathy with or allegiance to al-Qaida” among local populations.

These facts, of course, are a downer for those mesmerized by the president’s soothing inauguration rhetoric. No doubt, he is hoping we simply ignore reality because we so want to believe the anti-war oratory. If we do that, though, we will be aiding and abetting the very state of “perpetual war” that the president has created.

© 2012 Creators Syndicate

Smoke and Mirrors: Obama DOE Fracked Gas Export Study Contractor’s Tobacco Industry Roots

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At first, it was kept secret for months, cryptically referred to only as an “unidentified third-party contractor.”

Finally, in November 2012, Reuters revealed the name of the corporate consulting firm the U.S. Department of Energy (DOE) hired to produce a study on the prospective economic impacts of liquefied natural gas (LNG) exports.

LNG is the super-chilled final product of gas obtained – predominatly in today’s context – via the controversial hydraulic fracturing (“fracking”) process taking place within shale deposits located throughout the U.S. This “prize” is shipped from the multitude of domestic shale basins in pipelines to various coastal LNG terminals, and then sent on LNG tankers to the global market. 

The firm: National Economic Research Associates (NERA) Economic Consulting, has a long history of pushing for deregulation. Its claim to fame: the deregulation “studies” it publishes on behalf of the nuclear, coal, and oil/gas industry – and as it turns out, Big Tobacco, too.

Alfred E. Kahn, the late “Father of Deregulation,” founded NERA in 1961 along with Irwin Stelzer, now a senior fellow and director of the right-wing Hudson Institute’s Center for Economic Policy. 

The NERA/Obama DOE LNG export economic impact study, released in early-December 2012, concluded that exporting the U.S. shale gas bounty is in the best economic interest of the country. The commenting period for that study closes today at 4:30 PM EST. 

This conclusion drew metaphorical hisses from many analysts, including prominent shale gas market economist and former Wall Street investor Deborah Rogers, who now maintains the blog Energy Policy Forum. Her critique cut straight to the very foundation of the study itself, stating that “economic model[s] are only as good as their inputs.”

She proceeded to explain,

In fact, it is neither difficult nor unusual for models to be designed to favor one outcome over another. In other words, models can be essentially reverse engineered. This is especially true when the models have been commissioned by industries that stand to gain significantly in monetary terms. Or government agencies which are perhaps pushing a political agenda.

Beyond its history working as a hired gun for the fossil fuel industry, NERA also has deeper historical roots producing “smoke and mirrors” studies on behalf of the tobacco industry. The long view of the firm’s past is something NERA would likely rather see “go up in smoke,” forever buried in the historical annals. But that would be a disservice to U.S. taxpayers since NERA continues to receive government contracts to produce tobacco-era disinformation to this day. 

NERA and the “Tobacco Playbook”

Many fossil fuel industry public relations flacks learned the tactics of mass manipulation by reading the “tobacco playbook,” meticulously documented in Naomi Oreskes’ and Erik Conway’s classic book, “Merchants of Doubt.” 

“Doubt is our product,” a tobacco industry CEO once said of the playbook, “since it is the best means of competing with the ‘body of fact’ that exists in the minds of the general public. It is also the means of establishing a controversy.”  

NERA Health “Benefits” of Smoking

The University of California-San Francisco’s Tobacco Archives reveal NERA worked on behalf of the tobacco industry dating back at least to 1986.

A May memo from that year written by then NERA Vice President William B. Shew (who now works at the previously mentioned Hudson Institute as an Adjunct Fellow alongside NERA Founder, Irwin Stelzer) addressed to Arnold & Porter attorney Thomas Silfen says the tobacco industry should aim to explain the so-called health “benefits” of smoking.

Most studies don’t explain “the satisfactions that induce smokers to put up with health hazards,” Shew explains in the memo. “This imbalance would be rectified by looking at the satisfaction derived from smoking.”

At the time of the internal memo’s publication, Arnold & Porter served as national counsel for Philip Morris.

A memo published in 1988 by Silfen posits that Big Tobacco has an obligation going forward to overcome its “long agony over health issues–to get the industry out of the ‘it hasn’t been proven’ trap once and for all.”

Attempt to Defeat L.A.’s Restaurant Smoking Ban 

Working alongside public relations industry giant Ogilvy-Mather and the Tobacco Institute, NERA also attempted to defeat the then-proposed smoking ban in Los Angeles County in 1990, the Tobacco Archives reveal. 

SourceWatch details that the Tobacco Institute hired Ogilvy “to provide public affairs consulting services aimed at helping the Instutitute fight cigarette excise taxes, public smoking restrictions and to help with coalition building issues,” proceeding to explain that it helped to “devise ad campaigns to take the public’s focus off the health hazards of secondhand tobacco smoke.”

Among other accolades, Ogilvy helped BP rebrand itself “Beyond Petroluem,” a propaganda campaign which won the corporation now infamous for its Gulf Coast oil disaster the PR Week “Brand of the Year” in 2001. Critics at the time called it a case of “greenwashing.” 

Yet in the end, it was a case of “too little, too late” for NERA, Ogilvy and the Tobacco Institute. 

In 1990, San Luis Obispo, CA “became the first city in the world to ban indoor smoking at all public places, including bars and restaurants,” according to the San Francisco Gate. By 1998, California adopted these regulations as the law of the land statewide.

NERA Offers Philip Morris Advertising Analytics

In 1992, tobacco giant Philip Morris hired NERA to analyze whether cigarette advertisements made an impact on consumption habits. This came during a time when the industry faced sharp scrunity for whitewashing the dangerous health impacts of smoking in its ads.  

Given this premise, it’s no shock NERA concluded that the concerns about the effectiveness of Big Tobacco’s advertising charm offensive were overblown. 

“The issue of whether cigarette advertising has had any effect on cigarette consumption per adult in Western countries over the last several decades remains uncertain,” NERA explained in the lenghty report now posted on the Tobacco Archives. “However, it seems clear that advertising has had at most a minor effect, if any, on consumption per adult.”

NERA/Philip Morris’ War on OSHA and Maryland Workplace Smoking Regs 

Later, in 1994 and 1995, the Tobacco Archives also reveal that NERA served as a contractor for Philip Morris (now owned by Altria Group), taking the fight to an Occupational Safety and Health Administration (OSHA) proposal to implement regulations for smoking on the job. 

OSHA proposed banning smoking everywhere within the workplace except for in small, desiginated and isolated lounges.

Dr. Albert L . Nichols authored a Dec. 1995 NERA economic study contracted out by Philip Morris which critiqued OSHA regulations. That study predictably concluded that OSHA’s regulations were “draconian” in nature, suggesting OSHA relied on “patently ludicrous” economic assumptions.

While NERA/Philip Morris waged its battle against OSHA, NERA also devoted itself to fighting back against Maryland’s state-level workplace smoking regulations.

A Feb. 1995 Associated Press article quotes Nichols saying that cigarette sales in Maryland “could fall by $27 million” on an annual basis if the regulations are implemented.

Much to NERA’s chagrin, a month later, the proposed regulations became Maryland state law.

Should Firm with Big Tobacco Roots Be Trusted?

The Sierra Club is skeptical of the Obama DOE’s choice of NERA as the contractor to perform the fracked gas LNG export study. The Club just filed a Freedom of Information Act request to ascertain exactly how the Department went about choosing NERA for its “study” that will play a large part in shaping the future of global energy markets.

“Deciding to export the U.S. gas supply is a major public decision,” Deb Nardone, director of the Sierra Club’s Beyond Natural Gas Campaign, said in a press release. “We deserve a full and fair conversation about it. That’s why we deserve to know how and why DOE picked this anti-environmental, pro-corporate consultant for this crucial report.”

With easily apparent deep-seated roots dating back to the halcyon days of Big Tobacco, the DOE’s NERA selection begs the question: Can one view the NERA/Obama DOE economic findings on LNG exports as anything but a deeply cynical PR ploy?

Update (5:33 PM CST): Over 200,000 public comments were delivered to the DOE, according to a Sierra Club press release. “The public should be outraged to hear that domestic supplies of gas would be shipped overseas and that households which rely on a paycheck will see no benefit, which is clearly stated in the report,” said Nardone. “Most Americans rely on a paycheck. Meanwhile communities all across the country are left footing the bill to clean up contaminated water supplies and with increased medical bills due to air pollution. Exporting fracked gas is clearly not in the best interest of the United States. DOE and President Obama must not accept this flawed study.” 

© 2012 De

Overnight Futures Ramp Right On Schedule

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At this point it has gotten painfully tedious, and the one phrase to describe trading is – Same Pattern Different Day. With equity futures closing decidedly weak on earnings reality after US market close, the slowly, steady overnight ramp seen every single day for the past month has returned as always, this time on yet another largely expected German confidence indicator beat (following the just as irrationally exuberant ZEW some time ago, and yesterday’s far better than expected PMI), this time the IFO Business Climate, which printed at 104.2, on expectations of 103 and up from 102.4. This was driven by both the current assessment rising from 107.1 to 108 and the Expectations rising from 97.9 to 100.5. Naturally, all confidence indicators will be skewed in a way to prevent the market from doubting for a second that Germany may actually succumb to the same recession that has gripped all other European countries (which Germany is an inch away from after its negative Q4 GDP). In other words: there is hope. As for reality, UK Q4 GDP came in at -0.3% on expectations of a far lower drop to -0.1%, and down from the olympics-boosted 0.9% in Q3. The UK certainly can’t wait for Mark Carney to come and show them how cable devaluation is really done, cause this time it will be different, if only it wasn’t different for everyone else.

But the most anticipated news of the day was the previously reported LTRO repayment, which came in far “stronger” than expected. Initially this was taken as positive as it means the ECB’s balance sheet will shrink at a time when everyone else is engaging in open balance sheet busting FX warfare, even if in reality this is a deflationary outcome leading to even more appreciation for the EURUSD, and even more pain for both the European trade and current account balance. As Deutsche Bank explained, “the market will likely continue to have some focus on the fact that the ECB balance sheet is likely to be steadily shrinking for a period at a time when the Fed is effectively increasing its by $85bn/month and where Japan is seen by many to be set to notably increase its interventions. So while the repayments are not a big deal in themselves the contrast between the ECB and many other central banks means that the Euro is probably biased to appreciate for the foreseeable future. This might provide an unwelcome headwind for growth in Europe later in the year.” And, naturally, a few hours before the LTRO announcement, none other than Italy’s Monti said that a strong EUR could harm exports, something we already showed for Spain.

More from Deutsche Bank:

Today is the day the ECB unofficially starts to exit from unconventional monetary policy as Euro-area banks now have the option to repay some of the 1 trillion Euros of LTRO money afforded to them last year. Banks can now hand back money with one week’s notice, and today at 11am London time is the first announcement of what they have initially done. It’s likely that any repayment will be biased towards stronger banks and as such there’s no real immediate systemic risk from this story. However the market will likely continue to have some focus on the fact that the ECB balance sheet is likely to be steadily shrinking for a period at a time when the Fed is effectively increasing its by $85bn/month and where Japan is seen by many to be set to notably increase its interventions. So while the repayments are not a big deal in themselves the contrast between the ECB and many other central banks means that the Euro is probably biased to appreciate for the foreseeable future. This might provide an unwelcome headwind for growth in Europe later in the year. Despite the promise of the OMT, Europe is in danger as being seen as the least active in the near-term in the currency war skirmishes that are focusing investors minds at the moment. Maybe actions elsewhere and a higher Euro will eventually lead to the ECB balance sheet expanding again after some market stress but this is further down the road.

While on European matters, Draghi is expected to speak at Davos today at 930am London time so it’ll be interesting to hear if he continues to give off an air of increased confidence and whether he discusses the currency at all. Data wise Europe had a mixed day yesterday but the US was strong. In terms of the flash PMIs, Germany (48.8 vs 47.0 expected for Manufacturing, and 55.3 vs 52.0 for Services) was strong but weakness in France (42.9 vs 44.9 expected for Manufacturing, and 43.6 vs 45.5 expected for Services) was notable. The overall European number beat expectations but Germany played a large part in this. Our European economists think that these numbers are consistent with a flat Italian and Spanish composite reading when the data comes out next Friday. The Flash Markit US PMI number was very strong (56.1 vs 53.0). This release is still in its infancy with little track record but if it’s close to being consistent with the official ISM then US markets are not mis-priced at current levels. Indeed in our ISM/S&P 500 simple regression model, at current levels US equities are broadly pricing in an ISM of 54.7. The last ISM was at 50.7 though so the flash PMI is well ahead for now and a bit of caution is required. In Europe the market is much more ahead of the economy as our simple model suggests that equities are broadly pricing in a French, German and Euro-area PMI of 54.5, 56 and 54, respectively (against yesterday’s flash manufacturing numbers of 42.9, 48.8 and 47.5). This is all quite sweeping but in general the US economy is showing signs that it might be living up to some of the faith the equity market has recently shown in it whereas Europe still has a long way to go.

As we said in the 2013 outlook, liquidity and the benefit of the doubt will likely dominate in Q1 and market should generally be in decent shape. However we do need to see Europe show more consistent and broad growth for European markets not to have a set-back in Q2. The jury is still out on this and a steadily increasing Euro won’t help.

Moving on to the market, yesterday saw the S&P 500 breach the symbolic 1500 mark for the first time since 2007 before chatter of a Financial Transactions Tax helped reverse all of those earlier gains. US data flow was generally positive supported by a larger-than-expected drop in initial jobless claims (330k v 355k) and the stronger preliminary PMI as mentioned above. Although we should note that the regional manufacturing surveys from the Kansas Fed yesterday (-2 vs +1) and the Richmond Fed on Tuesday (-12 v +5) were both disappointing.

The S&P 500 finished the day virtually unchanged with the NASDAQ (-0.74%) being a standout underperformer amongst major indices as sentiment for Tech stocks softened on the back of Apple’s results.

Turning to Asia and overnight markets are mixed. The Nikkei (+2.5%) is leading the pack as the continued fall in consumer prices probably added further easing optimism. Core CPI fell – 0.6% yoy in December which is a touch more than expected (-0.5% yoy).

The JPY fell to 90.5 against the Dollar and is now 2.7% off the intra-week highs. Elsewhere the Hang Seng (- 0.3%) and the KOSPI (-1.1%) are both lower with the latter particularly being impacted by the renewed weakness in JPY.

In other news EU’s Olli Rehn said that he is unsure that the Euro is overvalued now but would not want to see a currency war of competitive devaluations which would have a negative effect on the Euro. On the peripheral countries, Rehn said there are several options under consideration to help Dublin and Lisbon return to markets including possibly extending the maturity of bailout loans or providing a new precautionary credit line.

In terms of today, Germany’s IFO survey and UK GDP for the fourth quarter will be the data highlights in Europe. The New home sales report is the only major release in the US. So all eyes will be on the ECB’s LTRO prepayment announcement and Draghi’s speech at Davos today.

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Pizzagate: PM Snapped Enjoying ‘Raucous’ Dinner While Economy Burns

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A picture of a chipper David Cameron enjoying dinner with Boris Johnson and the Chancellor, despite being forewarned of the dire state of the economy, has prompted ire on social media.

The three Tories laughing and eating pizza while Britain’s economic recovery slammed into reverse has been dubbed #pizzagate on Twitter with many criticising the PM fo his apparent lack of concern.

pizza gate

Greenpeace’s head of media Ben Stewart took the picture of the dinner in Davos

Greenpeace’s head of media Ben Stewart, who was also dining at the Alte Post pizza restaurant and took the picture, described the meal as “raucous” and said the PM and Osborne were “laughing uproariously” and joking with London Mayor Boris Johnson.

Damien McBride, who was a close aide to Gordon Brown at the Treasury and in 10 Downing Street, said: “What on God’s Green Earth was Osborne doing eating pizza in Davos when he knew GDP was back in negative territory?”

Some tweeted that GDP clearly stood for ‘George and Dave’s Pizza’.

However some have turned on Stewart, accusing him of being hypocritical, as he was in the same Davos restaurant and worked for a charity.


Frank Manning

Amazed at complaining about Cameron having dinner while he eats at the same restaurant (paid for by donations to Greenpeace)

Stewart responded:


ben stewart

Nope not paid by Greenpeace, and I had cheapest thing on menu (pizza, £22, too much courgette)

Asked whether Mr Cameron was embarrassed to be snapped enjoying himself in a restaurant the night before the release of bad GDP figures, the Prime Minister’s official spokesman told reporters: “The Prime Minister and Chancellor have been in Davos banging the drum for British business, entirely consistent with the case we have been making that this is a global race, and also making the case for the kind of open, free-trade global economy which the Prime Minister was talking about in his speech yesterday and which is so important to outward-looking economies such as the UK’s.”

The spokesman declined to discuss whether alcohol was drunk with the meal, saying only: “The Prime Minister and Chancellor and others had dinner last night.”

What do you think of the picture? Leave your own caption in the comments below.

Reclaiming Our Imaginations from ‘There Is No Alternative’

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We live in a time of heavy fog. A time when, though many of us dissent and resist, humanity seems committed to a course of collective suicide in the name of preserving an economic system that generates scarcity no matter how much is actually produced. To demand that all have enough to eat on a planet that grows enough food, that absurd numbers of people do not die from preventable disease, that utter human deprivation amongst plenty is not tolerated, or that we put the natural laws of the biosphere above socially constructed economic “laws” – is presented as unrealistic, as the fantasy of idealists or those who are naive to the “complexity” of the world’s problems. If we create and recreate the world everyday, then how has it become so supposedly absurd to believe we might actually create a world that is honestly making the possibilities of egalitarianism, justice and democracy?(Source: Flickr / jimkang)

Capitalism – the logic of subordinating every aspect of life to the accumulation of profit (i.e. the “rules of the market”) – has become today’s “common sense.” It has become almost unthinkable to imagine coherent alternatives to this logic, even when considering the most basic of human needs – food, water, healthcare, education. Though many have an understanding of capitalism’s failings, there is a resignation towards its inevitability. Margaret Thatcher’s famous words, “There Is No Alternative,” no longer need to be spoken, they are simply accepted as normal, non-ideological, neutral.

What sustains the tragic myth that There Is No Alternative? Those committed to building a more just future must begin re-thinking and revealing the taken-for-granted assumptions that make capitalism “common sense,” and bring these into the realm of mainstream public debate in order to widen horizons of possibility. We can’t leave this task to the pages of peer-reviewed journals and classrooms of social theory – these conversations must enter also into the family dining rooms and TV screens. Here are some thoughts on conversation starters:

Alternatives could never work. Does capitalism “work”? Even by its own indicators, as we’ve become more capitalist (i.e. neoliberalism), economic growth and productivity has actually declined.

Today’s globalized world is too complex to organize things any differently. Of course the world is complex – each of us is a bundle of contradictions and we need look no further than the dynamics of a single relationship to make a case for social complexity. But things are also quite simple – we live in a world where one billion people go hungry while we literally dump half of all food produced. Can we not come up with a productive socio-economic system that also meets people’s most basic needs? The gift of today is that we have the ability to reflect and draw-upon many forms, past and present, of non-capitalist social organization, and to creatively experiment with blending the best of these possibilities. The fact that we are more connected than ever before and have advanced so far technologically gives us more possibilities, not less.

Because of our “human nature,” we can only create economic systems based on competition, greed and self-interest. This is not only utterly pessimistic, but plain wrong. Again, we can start by remembering all sorts of societies that have existed through history. Then just look around and ask the question, what motivates you and the people you know? Fields as diverse as neuroscience and anthropology have mounted evidence showing humans’ incredible capacity for cooperation and sensitivity to fairness. We are actually all quite capable of anything; but it is up to us to decide how to use our capabilities, and of course that will be dictated by what our social systems encourage and teach us to value. If there is one thing that can be said about “human nature,” it is that we construct ourselves from within our societies and we are incredibly malleable.

Freedom is only realizable through a free-market. Attaching our values of freedom to the market is not only de-humanizing, but it also fails to recognize how one person’s “freedom” to economic choice is another’s imprisonment in a life of exploitation and deprivation. There is no possibility for freedom and emancipation until we are all free, and this will only come through a much richer and deeper conception of human freedom than one that is premised upon going to a grocery store and “choosing” between 5,000 variations of processed corn.

Capitalism is the only system that encourages innovation and progress. Progress towards what? And how does enclosing common knowledge through intellectual property rights, or excluding most of the world from quality education, or depriving half of humanity from the basic life-sustaining goods needed to function healthily, lead to greater innovation? Just begin to imagine the innovative possibilities of a world where all people had access to everything they needed to live, to think, and to contribute to the common good.

Things could be worse. Of course they could, but they could also be better. Does the fact that we’ve lived through bloody dictatorships mean that we should settle for a representative democracy where the main thing being represented is money? Things are getting better. Can we really say that things are getting better as we head towards the annihilation of our own species? Sure, we may have our first black president and be making small gains in LGBT rights or in women’s representation in the workforce; but let’s not neglect the fact that capital is more concentrated and centralized than it has ever been and that its logic now penetrates into the most basic building blocks of life. I think we should give ourselves more credit than to settle for this “better.”

Change is slow. Slow is not in the vocabulary of the corporations who are stealing our common genetic heritage, or their buddies who are getting rich playing virtual money games that legally rob us all. The enclosure of our commons and the concentration of capital is not happening slowly. Whether we acknowledge it or not, change is happening – what is up for grabs is the direction of that change.

The best we can hope for is “green” and “ethical” capitalism. The logic of this belief is fundamentally flawed because it assumes that within capitalism, businesses can prioritize anything above the bottom-line. In actuality, businesses that commit themselves first and foremost to being truly and fully ethical and green will find it very difficult to stay in business. Of course there are great models of ethical business – worker-owned organic farms, for instance – but these cannot thrive and become the dominant norm when they are functioning within an economic structure that concentrates wealth and power in the hands of Monsanto. And while we should support these alternatives that exist within capitalism, we need to recognize that it’s way too little, way too late – structural change must (and will) happen, one way or another. Getting rid of capitalism means abandoning markets as a tool of social organization. This is not necessarily true, although perhaps we would do best without markets anyways. Societies have existed that have used markets but restrained oligopoly capitalism, and many brilliant thinkers have envisioned a transition to a society structured by norms of equality and sharing where markets do play a role. I’m not advocating for or against any specific proposals here, but the point is that this assumption is historically inaccurate and we have barely begun to give serious thought to other possibilities.

People don’t care. People may be distracted by consumerism, may only have enough energy to struggle to pay their bills, may be fearful, may lack access to good information… but none of these things mean that they don’t care. Show anybody an image of a starving child who works in the cacao fields but can’t afford to eat (much less taste chocolate), and they will feel disgust. The charity industry is thriving precisely because so many people do feel implicated in the revolting manifestations of capitalism. But people’s sense of outrage has been channeled away from collective political action and towards ethical buying and holiday-time charitable donations. Without an honest and sophisticated society-wide conversation about the structural issues we are facing, people’s care is reduced to individual guilt and disempowerment.

People won’t stop consuming, plus all the poor people want what the rich people have. Of course they do! Doing away with capitalism doesn’t mean resorting to primitivism, or abandoning all of our washing machines, or leaving the poor destitute. While of course there are limits to the earth’s resources (fossil-fuels in particular), this doesn’t mean that we can’t organize a productive, equitable and sustainable social order that includes many of the comforts of modern life and excitements of technology. We need not abandon desire with capitalism. In fact, getting rid of capitalism gives us the best chance of having time to organize a sustainable system of consumption before it is too late – staying hooked into capitalism may actually be the quickest route to primitivism.

Capital’s enclosure of our commons – our common resources, genes and even intellect – has been accompanied by an enclosure of our imaginations. We need to re-claim and re-orient what it is to be “realistic” from the falsehoods of There Is No Alternative. This is not a call for pure imaginations of some future utopia. It is not a fantastic plea for a sudden and complete dissolving of all the social structures that currently pattern our lives. Instead, it is a call to take what is already going on all around us, all the time – cooperation, sharing, empathy – and let these aspects of our humanity that we most cherish guide our future. To begin to re-direct and re-structure our social systems towards the things we most desire and value – caring for and cooperating with one another, true participation and democracy, human freedom and free time, peace and co-existence – and in doing so, to watch these things begin to flourish.

If it is naive to believe that we can structure society to reward goodness instead of greed and prioritize people instead of profit, then I’m fighting until the bitter end to maintain my naiveté! Things become possible when we believe they are possible; so let’s start believing.

Old Struggles, Shifting Awareness in a New Age

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This past week’s presidential inauguration on Martin Luther King Day finds us as a nation and people at a remarkable crossroads. Before us we have the same daunting issues we have faced for years yet there is something different. There is a developing shift in our consciousness and responsibility. We are witnessing a new awareness of the challenges and necessity of addressing them. What is needed is the collective will and steadfastness of effort to realize the opportunities that are upon us.

This year commemorates profound social events in history, from the 150th Anniversary of the signing of the Emancipation Proclamation to Dr. King’s “I have a Dream” speech 50 years ago. That dream and challenge is alive and vital today, and recent events have made the need to realize it ever more apparent. It is not enough to simply pay homage and then move on. Our work is before us and demands action.

From Hurricane Sandy to Sandy Hook, the challenges we face loom large. They range from climate change, gun control, immigration reform, to mass incarceration, war and social and environmental justice. On our shared planet, there is a demand for environmental sustainability, social justice and spiritual fulfillment. We must recognize that these issues are all connected. Not one can be had without the others. The tipping point on these issues is at hand.

Daily we witness the devastating effects of climate change, from year over year record temperatures with 2012 being the warmest year on record for the lower 48 U.S. states. We see the catastrophic global storms and record melting of the Artic Sea ice. People are making the connection of extreme weather and climate change. The storms affect everyone though poor and underdeveloped communities and civilizations feel a disproportionate brunt with resultant environmental injustice.

Gun violence is a public health threat and national disgrace. Averaging 87 gun related deaths per day the United States saw over 30,000 of our citizens die last year. Gun related deaths are the leading cause of death among inner city black children and teens. This ‘war’ rages on everyday right here on our soil. Deaths from these weapons of mass destruction will soon overtake annual auto fatalities. This public health threat has gone on for far too long. As with any public health threat, prevention is key. A sad and paradoxical outcome of the Sandy Hook shootings and the loss of innocent white school children and teachers is that previous congressional adversaries to gun control are starting to evolve recognizing that there is no “safe” population and are seeing the need for some sensible control of our current insane gun policy.

Immigration reform has long been ignored or used as political issue. Yet immigration is a reality in our society and how we respond will address social and economic justice. Our economy is dependent on the labor of these “non-recognized” people who we so often overlook and treat as non-entities. This is a complex and international issue that demands compassion and leadership to resolve.

Mass incarceration that flows from the “War on Drugs” finds 2.3 million people in the U.S. behind bars. With 5% of the world’s population the U.S. has 25% of the worlds incarcerated making the U.S. the “incarceration nation”. Fifty percent of this population is men of color and has been referred to as the new “Jim Crow”. This institutionalized racism tears apart the social fabric of our communities.

Finally as the U.S. prepares to withdraw combat forces from Afghanistan it is imperative upon us to look closely to addressing and eliminating the root causes of war. All war has the possibility of going nuclear either by intent or mistake. In a world that remains wired for instantaneous nuclear annihilation stemming from outmoded cold war thinking the time at long last has come to make real progress in abolishing these weapons. The cost of war and the military industrial complex to our society and world in lives, treasure and opportunity is incomprehensible. The entire war economy demands a complete review as we face the finite fragile future of our planet.

With a majority of U.S. citizens supporting these initiatives, the time for action is now.

How we deal with these and so many issues speaks volumes to who we are as a nation. The president spoke of many of these issues in his inaugural address. However he can not resolve these issues alone. It is not enough for us as citizens to say we are in favor of something and then sit back and expect someone else to make it happen. How often do we hear or express that “they” didn’t get the job done. In reality “they” is us! In our democracy, we the people must persevere and demand that our elected officials abide by the peoples will. We must not give up until the result we demand is realized. Let us move forward together in this renewed season of opportunity. In the words of Martin Luther King, “Our lives begin to end the day we become silent about things that matter.”

Communists urge revival of moral values in Russia

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AFP Photo / Alexey Sazonov

AFP Photo / Alexey Sazonov

The Russian Communist party (KPRF) blames the media for bringing the society to moral and spiritual decline and urges the government to introduce tougher censorship and preserve the country’s culture and traditions.

The West constantly accuses Russia for the lack of freedom. On the contrary — there is not enough control, Communists say.

“Freedom lets out both the best and the worst qualities of a person,” the KPRF believes. There must be legal limitations to prevent “the release of the worst,” the party stated in a resolution published on its official website.

The document was signed on the results of a round-table discussion on the protection of spiritual and moral traditions of Russian peoples. State Duma deputies, scientists and public activists took part in the gathering chaired by Gennady Zyuganov, the KPRF’s long-time leader.

Just like their predecessors, the Soviet Communists, the party’s modern members believe that the state should supervise the nation’s morality. Methods they suggest are also similar to those in the USSR: censorship and tough control over the media. They describe the latter as “today’s most dangerous weapon which harms the minds and hearts of millions.”

The participants of the meeting agreed that modern “aggressive” information environment poses a threat to the youth and children, who are not able to distinguish between the truth and myths.

“Public speeches on TV and radio abound in strong language and thieves’ talk,” the resolution pointed out. “Dominance of scenes of violence, vulgarity, sex, and evil destroy entire populations in Russia.”

Besides that, Soviet-style heroes such as scientists, workers, dairymaids, cosmonauts, workers and officers have been replaced with successful businessmen, criminals, gays, dissidents and pragmatics.

Largely thanks to the media, people strive for physical pleasures rather than spiritual excellence, the document observed.

Others threats to the community come from foreign cartoons picturing mainly “robots, monsters and never-ending fights between children,” as well as videogames that promote information about prostitution, pornography and drugs.

Social networking services also came under fire as an instrument that is used to “deform the Russian language” and impose an alien morality on society. The process of Russia’s Westernization is in full swing “disguised as communion with modern civilization,” the Communists asserted.

Demolition of the Annunciation church in Labor square, Leningrad, Russia, 1929 (RIA Novosti)
Demolition of the Annunciation church in Labor square, Leningrad, Russia, 1929 (RIA Novosti)

As a way to improve the situation, the KPRF urged the State Duma to set up a Council on the Protection of Morality on Russia’s TV and radio, develop a national program on the matter, and form a new state policy on education based on Russian classical literature and culture. In addition, the party believes it is necessary to counter “negative influence of foreign religious organizations.”

“Lately, we’ve been witnessing barbaric attacks on the Orthodox faith and our historic traditions,” Zyuganov told the meeting, adding that such a trend is absolutely unacceptable.

Meanwhile, Zyuganov’s party comrades remain split on the role of religious faith in the society and harshly criticize the KPRF leader for being too loyal to the Orthodox Church and betraying one of the party’s basic principles — atheism.

In the Soviet era, religion was considered “opiate for the masses” and did not fall in line with Marxist-Leninist ideology. Following the Bolshevik Revolution in October 1917, the Soviet government launched a huge anti-religious campaign, destroying cathedrals, mosques and temples. Thousands of clerics were arrested and executed.

US banks shaken by biggest deposit withdrawals since 9/11

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Joe Raedle / Getty Images / AFP

Joe Raedle / Getty Images / AFP

US Federal Reserve is reporting a major deposit withdrawal from the nation’s bank accounts. The financial system hasn’t seen such a massive fund outflow since 9/11 attacks.

­The first week of January 2013 has seen $114 billion withdrawn from 25 of the US’ biggest banks, pushing deposits down to $5.37 trillion, according to the US Fed. Financial analysts suggest it could be down to the Transaction Account Guarantee insurance program coming to an end on December 31 last year and clients moving their money that is no longer insured by the government.

The program was introduced in the wake of the 2008 crisis in order to support the banking system. It provided insurance for around $1.5 trillion in non-interest-bearing accounts with a limit of $250,000. It was aimed at medium and small banks as the creators of the program believed bigger banks would cope with the crisis themselves.

So the current “fast pace” of withdrawal comes as a surprise to financial analysts because the deposits are slipping away from those banks which supposedly were safe. Experts expected savers in small and medium banks would turn to bigger players come December 31. 

There are a number of reasons behind this unpredicted fund outflow. Some experts believe it has to do with the beginning of the year when the money is randomly needed here and there. Others have concluded the funds are getting down to business and being invested.

Another set of data from the US Federal Reserve shows some deposits may have moved within the banking system from one type of account to another.

The Flobots: Reviving the Poetry of Politics

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In 2006, Neil Young told the Los Angeles Times that the silence of young songwriters during the Bush era compelled him to retake the stage as a protest singer: “I was waiting for someone to come along, some young singer eighteen-to-twenty-two years old, to write these songs and stand up. I waited a long time. Then I decided that maybe the generation that has to do this is still the ’60s generation.”  

Hats off to the Godfather of Grunge for stepping into the breach during the Bush years but it’s time for him to exit stage left and let a new generation take over. Whether it’s Occupy’s resurgence as an army of first-responders distributing food, clothing, and even bike-powered electricity or the Rolling Jubilee that has pooled enough funds to buy and then cancel over $10 million in homeowners debt — this is not your father’s protest movement.

To tune into the new poetry of protest, Neil should check out the Flobots. They’re a band out of Denver writing songs that reflect the frustration and anticipation of a new generation of activists navigating the seemingly intractable environmental and economic crises.

What sets the Flobots apart from other contemporary topical songwriters is their keen sense that something new is afoot. They are one the first bands to articulate the sneaking suspicion among activists that a new paradigm with a new storyline is emerging – one that, against all odds, we may have the power to shape.

The Flobots don’t drip with the idealism of the drum-circle crowd, but in songs like “Circle in the Square” they let their hope mingle with fear:

We are the night light bearers for night terrors
we are group dreamers vision seekers and pall bearers
in aftermath of blight errors
blood type and marrow to the bone oaths
and beat hope into plough shares.

They use their music to embrace what co-founder Johnny 5 sees as the “complications, questions, and frustrations” of activism and social change. They celebrate this complexity “as a part of a global transformation, one in which forces of violence, hopelessness and waste will be composted into fertile soil from which new possibility can grow.”

Too many protest songs are uninspired. Like banal picket line chants–”Hey hey, ho ho, Dirty coal has got to go”–songwriters dash off drab lyrics that influence neither heads nor hearts. Neil Young went from writing Ohio in 1970, one of the most pointed, timely and moving political songs of his generation, to the slapped together “Impeach the President For Lying” in 2006. As Truman Capote famously quipped about Jack Kerouac, “That’s not writing, that’s typing.”

The Flobots are on a quest to return poetry to politics. In songs like “The Rose and the Thistle” they weave images of street clashes and concealed edens:

the shadow cast was like a battle axe
so I grabbed it fast and I smashed the glass
and I crawled through the shards
and i found myself in a beautiful garden
with petals bulbs
nettles mulch hibiscus delphinium ferns christmas bells…

The band tag themselves as “students of illness” and prove it by scattering medical references of surgical procedures and prescription drugs like chondroitin and glucosamine throughout their songs. Once you realize they’re not defending Obamacare, the rhymes becomes less peculiar and more powerful. The Flobots–like many of their generation–are intent on holistic critiques of social ills, not the laundry lists of siloed issue politics.

These are artists diagnosing the disease and disorders of the body politic–and that’s exactly what the doctor ordered. As Bill McKibben, co-founder of 350.org writes, poets and other artists are the “antibodies of the cultural bloodstream” and key to social movement vitality, because they “sense trouble early, and rally to isolate and expose and defeat it, to bring to bear the human power for love and beauty and meaning against the worst results of carelessness and greed and stupidity.”

Whether it was Picasso’s “Guernica” capturing the horrors of the German bombing of civilians in 1937 or “We Shall Overcome” expressing the optimism and power of the civil rights movement, throughout history artists have joined forces with political movements to battle injustice. Our generation’s fight to build a sustainable future will be long and hard. To prevail we will need a battalion of Flobots to inspire and fortify our wills – and together we will make the world better and more beautiful place.

‘Black population persecuted in Israel’

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People of color are persecuted in Israel. (File photo)

Reports say Israeli healthcare officials prescribe dangerous birth control drugs to women of color to reduce the black population in Israel.

Medical centers in Israel use the contraceptive Depo Provera as a long-term birth control method to decrease the number of black babies.

According to a recent report, about 57 percent of Depo Provera users in Israel are women of color, while they form less than two percent of the total population.

People of color in Israel face widespread discrimination.

Randy Short from the Dignity, Human Rights and Peace Organization in the United States, told Press TV that Israeli jails are full of Africans and they have a prison camp in the volatile Sinai Peninsula.

Short gave the example of former Israeli Foreign Minister Avigdor Lieberman as a very racist member of the Israeli parliament, who hates black people.

People of color in Israel are poor, homeless and discriminated against as the ideology of Zionism sees them as sub-humans, Short stated.

MKA/HSN

Why Serving In Combat Does Not Serve Women (Or Anyone Else) Well

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Crucial as it is for women to have the same opportunities and benefits as men who do comparable work, Secretary of Defense Leon Panetta’s announcement that women can now serve in combat positions in the military should not be misconstrued as a step forward for women.Lt. Col. Tamatha Patterson of the Army with Defense Secretary Leon E. Panetta and Gen. Martin E. Dempsey, the chairman of the Joint Chiefs of Staff. (Photo: Brendan Hoffman for The New York Times)

As the women’s rights advocacy group AF3IRM GABNET said in a statement on their Facebook page,

The Pentagon lifted a ban on women in combat, stating that women can now serve on the frontlines. We in AF3IRM know that this is already common practice and that women of color and transnational women are already disproportionately over-represented in the US military. They are pushed into military duty due to poverty and lack of other options.

We do not celebrate this new “elimination of a gender-based barrier.” We do not celebrate sending us women overseas to kill other women and children in someone else’s name. (emphasis mine)

According to a study by the PEW Research Center, women now make up 14% of the enlisted ranks and 16% of the officer ranks. A look at the racial breakdown of those numbers is instructive,

While 71% of active-duty men are white (including white Hispanics), only about half of active-duty women (53%) are white. The share of white women in the military is also significantly smaller than their proportion in the civilian female population ages 18-44 (78%).

More than three-in-ten (31%) military women are black (including black Hispanics). This is almost twice the share of active-duty men who are black (16%), as well as more than twice the proportion of civilian women ages 18-44 who are black (15%). In addition, more women in the active-duty force than men in the active-duty force and civilian women ages 18-44 are of mixed racial background or some other race.3

The share of Hispanics among women and men in the armed forces is similar (13% vs. 12%, respectively), and the share of military women who are Hispanic is smaller than that of Hispanic women ages 18-44 in the U.S. civilian population (16%). But the number of Hispanics enlisting in the active-duty force each year has risen significantly over the last decade. In 2003, Hispanic women and men made up 11.5% of the new enlistees to the military; just seven years later, in 2010, they made up 16.9% of non-prior service enlisted accessions.

Further,

More than eight-in-ten post-9/11 female veterans say they joined to serve their country or receive education benefits (83% and 82%, respectively). Fully 70% say they joined to see more of the world and almost as many (67%) say they joined to gain job skills.

However, there is one key difference in the reasons that men and women joined the military. Some 42% of female veterans say they joined the military because jobs were hard to find, compared with one-quarter of men.

The take away here should be that we need to take a good hard look at the ways in which we are failing these women in regard to job training and job availability in the civilian world because as it stands now, we are effectively asking the most disenfranchised among us to fight our wars, and this move only makes it more dangerous for them, regardless of rank and benefits.

So yes, equal rights and benefits are necessary, but not at the expense of condoning a system that requires us to kill and destroy for empire and perpetuates a myriad of harms against women, against men too, and against Mother Earth.

It is also hugely ironic that Panetta’s announcement came the same day that Congress was holding yet another hearing on the intractable problem of sexual assault in the military. The truth is that women are more likely to be attacked by other members of our military than by any enemy. The New York Times’ Gail Collins makes the unfortunate suggestion that having more women rise in the ranks might,

make things better because it will mean more women at the top of the military, and that, inevitably, will mean more attention to women’s issues.

Sexual assault in the military is not a woman’s issue. It is an epidemic and a national disgrace that is a direct result of the misguided notion of militarism that posits that strength comes from asserting power over others.  Militarism has never been good for women because, among other reasons, it places them in harms way by armies that rape and assault women as a de facto military strategy and because women are more likely to become refugees, unable to support themselves or take care of their families and placing them in further danger of physical and sexual attack.

General Martin Dempsey, chairman of the Joint Chiefs of Staff also makes the argument that more equality will lead to more respect and hence less sexual assault in the ranks, but the military is still a top-down power over structure and women who do serve in lower ranks will continue to be vulnerable. And let’s face it, we live in a country where Congress just failed to re-authorize the Violence Against Women Act and where we still don’t have the Equal Rights Amendment and the Senate has yet to ratify the Convention on the Elimination of all forms of Discrimination Against Women (CEDAW). The disrespect of women’s rights, safety and well-being is a de facto national policy in the U.S.

It is being said that drafting women will inevitably follow and I am not in favor of that any more than I think drafting men is a good thing. Let’s be honest about the mission of the U.S. military. It isn’t to defend this country, there hasn’t been a war for that purpose in my lifetime. Instead we have repeatedly engaged in military operations for the sole purpose of asserting empire and domination.

If the purpose of the military was truly to defend the citizens of this country and make it strong, they would be protecting women from violence in their own ranks and in every city in this country. They would be building up our shorelines to protect us from the inevitable further flooding of climate change. They would be re-building our tattered roads and utilities and installing solar panels so that we do not depend on non-renewable resources (of which incidentally they are one of the biggest users).

But instead, our military serves as the global bully, taking swings at whomever we don’t like at at any particular moment, with little heed to the negative impact that has on us all. And every time there is a war, civilian women who live where the war is being fought are victimized. And here at home more money is poured into the military while social services, education and health care are desperately underfunded and for poor women and women of color we perpetuate the cycle that propels them to join the military for reasons such as getting an education and job training.

So yes, equal rights and benefits are necessary, but not at the expense of condoning a system that requires us to kill and destroy for empire and perpetuates a myriad of harms against women, against men too, and against Mother Earth. That is a false and harmful premise of equality that we must reject.

Copyright © 2013 Lucinda Marshall

Georgia soldiers injured in Afghanistan

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Georgian soldiers are seen in a military base in Afghanistan. (File photo)

Three Georgian soldiers have been injured in attacks carried out in Afghanistan’s southern province of Helmand, Press TV reports.

Georgian military officials said on Friday that Corporal Erekle Kharshiladze and Junior Sergeant Iago Kakulia came under fire during a patrol in Helmand the previous day. The two were reportedly taken to a hospital in Landstuhl in Germany.

In a separate incident, Private Guram Chimakhidze was also injured in an anti-personnel mine explosion while patrolling, the officials added.

Reports say Georgia has about 1,600 soldiers in Afghanistan, mainly in Helmand.

Eight Georgian troops lost their lives in Afghanistan in 2012. The Georgian Ministry of Defense says over 90 soldiers were wounded in the country in 2010-2012.

The United States and its allies invaded Afghanistan in 2001 as part of Washington’s so-called war on terror. The offensive removed the Taliban from power, but insecurity remains across the country.

AZA/SAB/HSN

‘West targets Iraq after Syria failure’

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An Iranian lawmaker has warned against West-Arab plots against Iraq’s stability and peace, urging the Iraqi people to remain vigilant to thwart conspiracies.

“Arab reactionary countries accompanied by their masters are trying to damage stability and tranquility which are being institutionalized in Iraq,” a member of the Majlis Presiding Board Javad Jahangirzadeh told ICANA on Friday.

He added that Western countries seek to create a new crisis in Iraq following their failed policies in Syria and emphasized that such scenarios would fail to yield any result thanks to the vigilance of the Iraqi people and political figures.

The Iranian legislator noted that Iraq is paying for the failure of a project aimed at toppling Syrian government of President Bashar al-Assad.

Sectarian, tribal and political challenges prepare the ground for Western countries’ interference, he added.

Several anti-government demonstrations have been held in Iraq since December 23, 2012, when bodyguards of Finance Minister Rafie al-Issawi were arrested on terrorism-related charges.

The demonstrators allege that the arrests were made on sectarian grounds. They demand an end to anti-terrorism laws, but the government in Baghdad says it is up to the Iraqi parliament to decide on abolishing those laws. The government says there are foreign agendas behind the protests.

Supporters of the Iraqi government have also held demonstrations in several cities over the past few weeks.

Iraqi Prime Minister Nouri al-Maliki promised on January 2 to consider some of the protesters’ demands but he warned of police intervention if protesters abused their freedom, caused chaos, and compromised national security.

SF/MA

UN probing global terror drone warfare

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A United Nations official has initiated a formal probe into assassination drone strikes and targeted killings, examining one of the most controversial instruments of US government’s so-called counter terrorism policy.

In a press briefing in British capital of London on Thursday, UN Special Rapporteur Ben Emmerson announced the launching of an investigation by experts to inspect 25 terror drone attacks in Yemen, Pakistan, Somalia, Afghanistan and the Palestinian territories, The Los Angeles Times reports on Friday.

The UN official further said that the assassination drones are not the only manner of conducting targeted killings, “but the relative ease with which they are used and their devastating effects have spotlighted the legal unease around them,” the report adds.

Emmerson is also cited in the report as emphasizing that the world “urgently needs ways to regulate their use and keep it in line with international law,” which has still not resolved ways to deal with such killings.

“To shine the light of factual truth on some of these very abstract debates,” a team of investigators will look into targeted killings, the UN expert is quoted as saying.

The New America Foundation has published figures, estimating that since 2004 up to 3,279 people have been killed by US assassination drone strikes in Pakistan alone, including as many as 305 civilians and hundreds of others “unknown.”

The United States under the Obama administration has intensified terror drone strikes and its officials have defended the deadly assassination bids as a warranted use of force against what they widely claim as affiliates of the shadowy al-Qaeda terrorist group.

However, the daily points out, the rising use of assassination drones as a form of warfare “has alarmed human rights groups around the world, who argue that the secretive practice of targeted killings runs afoul of international law.”

The US, it notes, has been sued over drone assassination of three American citizens in Yemen, including an alleged al-Qaeda activist and his 16-year-old son.

Additionally, the US has recently escalated its terror drone attacks across Yemen, striking the central part of the country on Wednesday for the fourth time in the previous five days.

“The Obama administration seems to have decided that wherever it conducts a targeted killing, it is by definition engaged in armed conflict, even far from any obvious battlefield,” James Ross of Human Rights Watch is quoted of saying in the report. “What would the US say if Russia or China took the same approach to attack perceived enemies in the streets of New York or Washington?”

According to Emmerson, UN investigators will gather evidence on terror drone strikes until May by visiting a number of targeted countries and would make recommendations to the world body about nation’s duty to probe such attacks.

MFB/MFB

Clashes kill four in Iraq’s Fallujah

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File photo shows a demonstration in the Iraqi capital, Baghdad.

Four people have been killed and nearly 20 others injured in clashes between Iraqi security forces and anti-government protesters in the city of Fallujah.

Witnesses said a number of the demonstrators took to the streets of Fallujah, about 60 kilometers (35 miles) west of the capital city of Baghdad, on Thursday, trying to block a major road and hurling stones at the security forces.

According to reports, Iraqi police tried to disperse the protesters by firing shots in the air.

Iraq has been the scene of anti-government demonstrations since December 23, 2012, when bodyguards of Finance Minister Rafie al-Issawi were arrested on terrorism-related charges.

The demonstrators allege that the arrests were made on sectarian grounds and demand an end to anti-terrorism laws. However, Baghdad says it is up to the parliament to decide on abolishing those laws.

On January 9, Iraqi Prime Minister Nouri al-Maliki warned anti-government protesters that security guards could intervene to end illegal demonstrations across the country.

“There is a difference between a peaceful rally and an act of disobedience and blocking off a highway,” Maliki stated.

MKA/HSN

India festival to screen Iran’s ‘Hatred’

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Iranian filmmaker Reza Dormishian’s drama Hatred is set to be screened at the fifth edition of Jaipur International Film Festival (JIFF) in India.

Dormishian’s film will be presented in the short film category of the festival, which will be held from January 30th to February 3rd in the Indian city of Jaipur in Rajasthan state.

The film is about the life of two Iranian youngsters, Jaleh and Hamed, who went to Turkey to immigrate to the West. It chronicles their difficulties for taking fake passports and visas.

The Indian event received 1397 films from 90 different countries. It is aimed at promoting new filmmakers and exchange of knowledge, information and culture between India and other countries.

Hatred was hailed by critics and audiences in the 30th edition of Iran’s Fajr Film Festival and the 2012 edition of the Montreal World Film Festival.

The movie was screened at several international festival last year, including the 28th Warsaw Film Festival in Poland, the 5th Didar International Film Festival in Tajikistan and third London Iranian Film Festival.

SAB/MA

French war on Mali increases refugees

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Malian refugees wait for aid being distributed by the UNHCR and its partners in Niger. (File photo)

The number of Malian people crossing into neighboring countries goes on to rise amid the French-led war on Mali.

According to reports by the United Nations, over 4,000 Malian refugees have arrived in Mauritania alone since January 11, when France launched a war on Mali under the pretext of halting the advance of fighters in the country.

Along with Mauritania, Burkina Faso and Niger are also providing the displaced Malians with shelter.

On January 22, Adrian Edwards, a spokesperson for the Office of the UN High Commissioner for Refugees (UNHCR), told a news briefing in Geneva that new arrivals from Mali continue to “tell us they left their homes because of airstrikes and fighting.”

Edwards added that the refugees also speak of rising shortages of food and fuel “with traditional markets unable to operate.”

On January 18, UNHCR spokeswoman Melissa Fleming warned that “in the near future there could be up to 300,000 people additionally displaced inside Mali, and over 400,000 additionally displaced in the neighboring countries.”

The figures do not include the existing 229,000 people already displaced inside the country and 147,000 refugees who have fled to neighboring nations, Fleming told reporters in Geneva.

The United States, Canada, Britain, Belgium, Germany, and Denmark have already said they would support the French war.

The Economic Community of West African States (ECOWAS) has also pledged to support the war by sending 5,800 soldiers to Mali.

Some political analysts believe that Mali’s abandoned natural resources, including gold and uranium reserves, could be one of the reasons behind the French war.

MR/HSN

Clashes kill three in Iraq’s Fallujah

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Iraqi security forces, protesters clash, three killed

Three people have been killed in clashes between Iraqi security forces and protesters in the city of Fallujah.

MKA/HSN

Triple Dip Recession Looms As GDP Shrinks

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Britain’s recovery slammed into reverse at the end of last year after the economy contracted by a worse-than-expected 0.3%, official figures revealed today.

The fall in gross domestic product (GDP) between October and December compares with 0.9% growth in the third quarter and will raise fears that the UK is on course for an unprecedented triple-dip recession.

GDP – a broad measure for the total economy – would have to contract again this quarter for the UK to be back in recession, but hopes of a rebound are starting to fade after a snow-hit start to 2013.

The Office for National Statistics (ONS) said economic output as a whole remained flat in 2012. The fourth-quarter drop is worse than expected, with most economists forecasting a drop of 0.1%.

It deals a blow to recovery hopes after the UK bounced back from the longest double-dip recession since the 1950s in the third quarter.

But the rebound was largely driven by one-off factors, such as the Olympics, and as the economy clawed back activity lost during the Queen’s Diamond Jubilee holiday, which has skewed quarter-on-quarter changes in activity, the ONS said.

George Osborne said he would not “run away” from the problems facing the UK economy: “We have a reminder today that Britain faces a very difficult economic situation.

“A reminder that last year was particularly difficult, that we face problems at home because of the debts built up over many years and problems abroad with the eurozone, where we export most of our products, in recession.

“Now, we can either run away from those problems or we can confront them and I am determined to confront them so that we can go on creating jobs for the people of this country.”

SEE ALSO: Triple Dip? Maybe – Triple crisis? Definitely

Ed Balls said the figures showed David Cameron and Osborne have “been asleep at the wheel” spending too much time “obsessing” about an EU referendum.

“Today is the moment when David Cameron and George Osborne’s complacency is completely exposed. These deeply disappointing figures expose just how dangerously complacent the Prime Minister was when he said last autumn that the ‘good news will keep coming’,” he said.

“The longer David Cameron and George Osborne cling on to their failing plan the more long-term damage will be done. They must finally listen and act to kick-start this economy.”

Yesterday Nick Clegg admitted that the coalition cut capital spending too deeply when it took power.

Clegg said ministers now realised money for infrastructure was needed to foster recovery and the Government must do more to fuel capital investment if Britain does plunge into a triple dip recession.

In an interview with The House magazine, he said: “If I’m going to be sort of self-critical, there was this reduction in capital spending when we came into the Coalition Government.

Following the publication of the figures RBS said it was the the weakest four years of GDP performance outside post-war demobilisations since “at least the 1830s”.

Related on HuffPost:

WATCH: Bad Lip Reading Obama’s Inauguration

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Oh, joy! As expected, the Bad Lip Reading team have turned their hands to Obama’s second inauguration. And it is, to quote Ned Ryerson in ‘Groundhog Day’, a doozie.

It begins with the President’s swearing-in (“I’ll brush on my sassy face”), moves on to his inaugural address (“I buried a possum in this yard to keep it hidden for a week”) and ends with Beyoncé’s epic, lip-synched performance of… well, put it this way: it’s not ‘The Star-Spangled Banner’.

And if you enjoyed that, why not check out Bad Lip Reading’s recent take on American football…

…and all these previous delights, too:

Loading Slideshow...

Kerry urges demilitarized US diplomacy

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Obama administration’s Secretary of State Nominee Senator John Kerry has called for a US diplomacy that moves away from military deployments and assassination drone attacks “thrust upon us” by September 11.

“President Obama and everyone here knows that American foreign policy is not defined by drones and deployments alone,” Kerry said Thursday during his confirmation hearing before the Senate Foreign Relations Committee.

“American foreign policy is also defined by food security and energy security, humanitarian assistance, the fight against disease and the push for development, as much as it is by any single counter terrorism initiative,” he added.

The remarks come despite Obama administration’s drastic escalation of terror drone strikes, also referred to as “targeted killing,” in Muslim countries in the Middle East, South Asia and North Africa as part of its ‘counter terrorism’ policy that has been devised by White House Counterterrorism Advisor John Brennan, who was recently nominated to head the CIA spy agency.

The Senate committee is widely expected to vote as early as next week to confirm the Democratic Massachusetts senator who was his party’s presidential nominee in 2004 that lost to Republican George W. Bush. Reports indicate that Kerry may take over the US State Department in early February, replacing the departing Secretary Hillary Clinton.

On Syria, Kerry appeared to reject the Obama administration policy of regime change and when pressed by hawkish Republican Senator John McCain about intervening directly in the Middle Eastern country in support of anti-Damascus insurgents, Kerry said he needs time to better understand the situation.

Kerry did not outline a major foreign policy agenda for the US in the next four years but emphasized that “more than ever, foreign policy is economic policy,” noting that the United States must do better in the global competition for resources and markets.

MFB/MFB

Petrol price rise on way as ‘floodgates open’

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Petrol prices are set to rise by up to four pence a litre in the next few days, retailers have predicted.

The rise was forecast by the Petrol Retailers Association (PRA), and would add around £2 to the cost of filling a typical family car.

It comes as forecourts pass on increased wholesale costs to motorists.

“Independent retailers have been soaking up this increase at the expense of already tight margins because they know how hard the motorist is squeezed,” said PRA chairman Brian Madderson.

But he warned: “The floodgates will have to open soon.”

The AA forecast a smaller rise of about 2.5 pence per litre, as it accused the industry of failing to pass on falls in wholesale prices as quickly as increases.

The Office of Fair Trading will decide next week whether to launch an investigation into the fuel market.

AA president Edmund King told the Daily Telegraph: “Another new year, another new round of pump price rises after the industry failed to pass on fully wholesale price savings.

“The insight we are now getting on wholesale price movements rams home the need for this information to be out in the public domain immediately.”

Throughout the whole of 2012, the average price of a litre of petrol rose by 2.75p.

Despite a fall in fuel demand across northern Europe, and an apparent glut of petrol capacity, wholesale costs have risen steeply in the four weeks since Christmas.

Industry figures show the daily average selling prices in the UK have risen by less than one pence per litre for both petrol and diesel since January 1.

Mr Madderson also said that George Osborne should abandon plans to increase fuel duty from September.

“If fuel costs continue to rise as our sluggish economy and loss of AAA credit rating weaken the pound sterling against the US dollar, the Chancellor must abandon plans to increase duty … when he presents his Spring Budget.

“Householders and businesses will be hard pressed to cope with market fluctuations let alone more Government tax intervention.”

Plea for abducted girl’s return

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The mother of a little girl who was snatched by Egyptian relatives while on a family holiday has pleaded for her to be returned.

Naomi Button, 39, has not seen her daughter Elsa Salama since she was abducted in the Egyptian resort of Sharm el Sheikh on December 27, 2011 while visiting relatives.

Elsa’s father, Egyptian-born Tamer Salama, 35, is in prison in England for refusing to comply with court orders to return Elsa to her mother.

Standing in her daughter’s bedroom in Leeds, which has been kept just as she left it, Ms Button said she finds it difficult to cope.

“The worst times are when I wake up in the middle of the night, sometimes I wonder if that’s because she’s woken up and she’s crying for me,” she said.

Elsa will be six on February 2 and her mother has set up a Facebook page hoping that making a public appeal will finally bring her daughter home.

“I don’t know what she’s been told, I don’t know if she thinks I didn’t want her and I just left her in Egypt and that’s mortifying to me,” she said.

Salama was jailed in January 2012, having said Elsa was with his mother, but refusing to say where she was being held.

Sentencing him, the judge Mr Justice Mitchell said: “It is unspeakably harmful to the emotional welfare of your daughter.

“It shows me that you are a man with a hard heart, determined only to get your own way.”

Last week Salama was jailed for a further 12 months for his continuing failure to comply with court orders to return his daughter to her mother.

The couple met in Sharm el Sheikh in 2005 and were married in Egypt the following year, before moving to Leeds in 2007.

They separated in 2009 but agreed that Elsa should continue to see her family in Egypt.

Ms Button has a custody order in Egypt and the support of the Child Abduction Section of the Foreign and Commonwealth Office.

Her lawyer, Kate Bannerjee, who heads the children’s department at Jones Myers and is a panel member of the International Child Abduction and Contact Unit, warns that parental child abduction is on the increase.

“The Foreign and Commonwealth Office’s Child Abduction Section is receiving an average of four calls per day,” she said.

“Understanding of parental child abduction is alarmingly low and cases can take years to resolve.”

Ms Button has kept a pile of unopened Christmas presents in her daughter’s room.

“I know that she wants to be back home with Mummy,” she told us.

“My mission in life is to find my daughter and, no matter how long that takes, to be here for her.

“I want her to come back and see how her life was, so I do everything I can to find her but also to maintain the life she had, and that’s what I get up for every day.”

Gay Marriage Bill Published Ahead Of Divisive Commons Vote

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A bill to legalise gay marriage was published by the government today, amid deep splits in the Conservative Party on the issue.

The legislation is likely to provoke ferocious debate in the Commons, where a significant number of Tory MPs are set to vote against the plans.

But Culture Secretary Maria Miller insisted today it would ensure “equal and fair” treatment of gay couples, while providing adequate protection for religious institutions which do not want same-sex weddings to take place on their premises.

Miller told BBC Radio 4’s Today programme: “We feel that marriage is a good thing and we should be supporting more couples to marry and that is exactly what the proposals being brought forward today do.

“But it is about making sure that not only do we recognise the rights of same-sex couples in civil life, but we also recognise that some churches won’t want to participate in same-sex marriages.

“We are trying to make sure that there are the protections there for churches who feel that this isn’t appropriate for their particular beliefs. We know that there are churches who do want to take part in same-sex marriages, so we have made sure that there are provisions there so they can.”

Stonewall Chief Executive Ben Summerskill said: “Sadly the minority of people who oppose equal marriage consistently use mistruths and smears to argue against it. Supporters of this modest measure mustn’t let a vocal minority block equality. People must write to, tweet, email or call their MPs to ask them for their support before the Bill’s Second Reading debate on 5 February.

“We need straight people with lesbian or gay friends or relatives to stand up for their rights too. Equality benefits everyone, which is why we need every supporter to press MPs to vote for it. Our message is simple. Speak now, or forever hold your peace.”

SEE ALSO: Read The Marriage (Same Sex Couples) Bill

The legislation sparked controversy after it emerged that a “quadruple lock” designed to protect religious institutions from being forced to conduct gay marriages against their wishes will make it illegal for such ceremonies to be conducted by the Church of England and Church in Wales.

Miller said: “At the end of the process, there will be the same freedoms there for the Church of England and Church in Wales, but they have to be achieved differently, because the Church of England and Church in Wales have a common-law duty to marry people, and that is quite different from any other religious institution in the country.

“Therefore you would expect there would have to be slightly different provisions there.”

She added: “I don’t think it is for any government to tell the Church of England what they do when it comes to something which is so central to religious belief.”

Miller rejected claims that teachers could face disciplinary action if they refuse to “promote” gay marriage in schools.

“Teachers are able to, and entitled to, express their views about same-sex marriage and there is no requirement at all for them to promote it,” she said. “But obviously we wouldn’t expect teachers to be offensive or discriminate in any way about anything.”

Miller added: “Of absolutely paramount importance to me is that when it comes to civil society, we should be treating people equally and fairly and the measures we are putting forward today are doing that.”

Related on HuffPost:

Yemen seizes ‘Turkish-made’ guns

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File photo shows an armed man patrolling a street in the Yemeni capital city of Sana’a.

Yemen has captured another cargo of assault rifles originated from Turkey at the southern port of Aden, state media report.

Aden’s customs chief Mohammed Zumam told a Yemeni state news agency on Friday that some 3,780 automatic rifles were discovered in a container labeled as plastic household items.

The Yemeni official added that among the weapons found in the container were “115 T14 Turkish-made assault rifles.”

Zumam said the shipment had arrived in Yemen’s southern port from Turkey on November 16, 2012.

The latest incident marks the second time in a month that Yemeni authorities find a gun cargo shipped from Turkey.

Also in November 2012, the Yemeni Defense Ministry reported that security officials had seized around 3,000 pistols wrapped in biscuit boxes inside a container that had come from Turkey.

However, Ankara denied that it had authorized the arms shipment to Yemen, saying customs authorities at Turkey’s port of Mersin were told that the cargo consisted of biscuits and other food items.

On January 7, an unnamed Turkish official said the arms which were shipped to Yemen were duplicates of a US-made pistol model and did not show any markings or other hints that they had been produced in Turkey, the Turkish daily newspaper Hurriyet reported.

In a similar incident, the customs authority of the United Arab Emirates seized arms bound for Yemen from Turkey in 2011. However, it is still unknown who had ordered the shipment.

MKA/HSN

Volosozhar and Trankov defend European title

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Winners of the overall pairs competition pose with their medals on the podium at the European Figure Skating Championships in Zagreb (Reuters / Antonio Bronic)

Winners of the overall pairs competition pose with their medals on the podium at the European Figure Skating Championships in Zagreb (Reuters / Antonio Bronic)

Russia’s pair skaters Tatiana Volosozhar and Maksim Trankov have retained their European figure skating title scoring a season best 212.45 points in Zagreb.

Last month’s Grand Prix Finals winners perfectly executed a triple twist and some tricky lifts to score top marks leaving Germany’s four-time world champions Aliona Savchenko and Robin Szolkowy more than 7 points behind.

“Last year the German pair missed the European Championships and we won in their absence,” the R-Sport new agency quotes Trankov as saying. “This time the victory at the Euros is very important because we beat the best pair in the world.”

Italians Stefania Berton and Ondrej Hotarek settled for third and their country’s first pairs medal with 187.45 points.

Friday sees the ladies’ short program and the finale of the ice dance, where Russia’s Ekaterina Bobrova and Dmitry Soloviev lead after the short dance. Both men’s and ladies’ free skating will conclude the championships on Saturday.

Lukoil turns to Mediterranean

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AFP Photo / Mikhail Mordasov

AFP Photo / Mikhail Mordasov

Russia’s Lukoil is considering expanding operations to the Lebanon despite the ongoing civil war in neighboring Syria, and potential risks from regional politics.

­Lukoil already operates in West Africa and Romania, may become the first Russian company drilling in the Lebanon if it wins a tender to develop the Mediterranean shelf on February, 1. 

The firm plans to develop the project in the Lebanon as part of a consortium, the head of Lukoil, Vagit Alekperov told RT Business:

 “After the discoveries that were made in Israel and Cyprus, we consider the East Mediterranean a possible new oil-and-gas region. Lukoil is a big oil firm with experience of shelf development. We are now drilling in West Africa in 3 kilometer deep water; we developed deposits in the Baltic, Azov and Caspian seas, so we think we must participate in development of the new regions.”

The company is up against some tough international competition for the contract, including Chevron and Exxon Mobil from the US and France’s Total. It’s also competing against fellow Russian company Gazprom. 

You can find more details on the news in the RT Business bulletin at 2230 Moscow time.

Man Dies After Car Crashes Into River Wye

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A man has died after the car he was driving veered off a path and became submerged in a Derbyshire river.

The 42-year-old was driving his 11-year-old daughter to school near the Monsail Trail, north of the A6, when the Toyota Aygo entered the River Wye.

His wife was driving their nine-year-old son in another car behind him which also left the path and ended up in the water.

Derbyshire Police said the two children and their 39-year-old mother managed to escape unhurt from the cars but the father could not be saved, despite attempts from local residents, and died a short time later.

Paul Hawker, station manager at Derbyshire Fire and Rescue Service, was one of the first on the scene and said the wintry weather in the area was a contributing factor in the accident, a fire service spokeswoman said.

The county has experienced heavy snowfall and freezing temperatures in recent days.

Both mother and father were taking their children to school when the tragedy happened just after 8.30am.

Locals waded into the river to try to help the man and when police arrived on the scene an officer also plunged into the water to try to aid the rescue attempt.

Emergency vehicles and personnel, local mountain rescue volunteers, land ambulances, and the air ambulance, attended to take all four passengers to hospital.

Police said the man later died at Stepping Hill Hospital.

No names of the family members involved have yet been released and identification is expected to take place tomorrow.

Deaths linked to the recent cold snap have now hit double figures and forecasters are predicting another foot of snow is on its way for some areas.

Although the end of the cold weather is in sight as temperatures are expected to rise at the weekend, a further dumping of snow is expected tomorrow, bringing with it fears of further travel disruption.

The Highlands of Scotland will see the heaviest snowfall with up to a foot, while up to six inches could fall in northern England, four inches in the Midlands and up to two inches in the South.

The Met Office said it has amber warnings in place for much of Scotland, the north of England, east of England and East and West Midlands, with yellow warnings in Wales, southwest England and London and the South East.

It warned that strong winds will also lead to drifting and blizzard-like conditions, particularly over higher level roads in the north.

The Environment Agency has warned of the risk of minor localised flooding in some areas due to the rapid thaw.

Flood risk manager Phil Rothwell said: “A combination of rain and snowmelt over the weekend will increase the risk of flooding, especially in south west England, Wales, the west Midlands and northern England.

“We are closely monitoring the situation and have teams ready to respond to any potential flooding.”

‘No nuclear work at Iran’s Parchin site’

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A senior Iranian lawmaker has rejected claims that the Islamic Republic carries out nuclear activities at Parchin military site located near the capital Tehran.

“We have no nuclear activities at Parchin and the center is a recognized military site and not engaged in our country’s nuclear activities,” Alaeddin Boroujerdi, a member of Majlis National Security and Foreign Policy Committee, said Friday.

He noted that the inspectors from the International Atomic Energy Agency (IAEA) have so far visited Parchin twice.

He, however, added that at the current juncture, Iran sees no reason to increase its cooperation with the IAEA beyond the Safeguard Agreement first because the inspection of the Parchin site is not included in Iran’s commitments under the agreement and also because the country is facing increasing sanctions.

Boroujerdi said that the West should lift sanctions against Iran in return for more cooperation from the country.“If we are supposed to have more cooperation with the IAEA, Western countries should know that this is a two-way road and mutual interests are an internationally acknowledged principle,” he added.

The United States, Israel and some of their allies have falsely accused Iran of pursuing non-civilian objectives in its nuclear energy program.

The US and certain other countries have imposed sanctions against the Islamic Republic over the unfounded allegation.

Iran has vehemently rejected the allegations against its nuclear energy program, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty (NPT) and a member of the IAEA, it is entitled to use nuclear technology for peaceful objectives.

AR/MA

Egypt to mark revolution anniversary

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People hold a demonstration in Egypt. (File photo)

Thousands of Egyptians are expected to demonstrate across the country on the second anniversary of the revolution that toppled former dictator Hosni Mubarak.

Demonstrations have been organized by both supporters and opponents of Egyptian President Mohamed Morsi.

On Thursday, clashes erupted between police and protesters in the capital, Cairo, as a dozen of protesters tried to dismantle a security barrier blocking the Qasr el-Aini Street to the Liberation Square, which was the focal point of demonstrations two years ago.

Protesters threw rocks at police and shouted anti-Morsi slogans.

Opposition leader Mohamed ElBaradei stated on his Twitter account, “I call on everyone to take part and go out to every place in Egypt to show that the revolution must be completed.”

“Go out into the squares to finally achieve the objectives of the revolution.”

The opposition parties that called for Friday’s protest demanded the government overhaul the new constitution that was signed into law by Morsi last December.

Critics say the controversial constitution, approved in a referendum, did not offer adequate protection for human rights, and gave the president too many privileges and failed to restrain the power of the military establishment.

They also complain that the constitution fails to guarantee the rights of Egyptian women and minorities.

Morsi’s supporters, however, say enacting the constitution quickly is important to restoring stability in the country.

Since President Morsi took office in June 2012, thousands of Egyptians have held demonstrations to demand the implementation of the goals of the country’s revolution.

SAB/HSN

Greek riot police put end to Metro workers sit-in (PHOTOS)

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A policeman talks with Athens metro employees on strike occupying the network's headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)

A policeman talks with Athens metro employees on strike occupying the network’s headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)

Police stormed a Metro depot in Athens occupied by subway workers who refused to go to work for nine consecutive days. On Friday all public transport workers in the Greek capital joined the strike, putting the city on the verge of transport collapse.

­Police officers raided a subway train depot in western Athens where some 90 workers barricaded themselves on Thursday. The operation started before dawn, right after 4am, when a crew of around 100 officers stormed the barricaded gates while riot police blocked off the facility to prevent other workers that started gathering near the depot from getting in.

The protesters were dispersed, with no fewer than 10 of them were detained for resisting in force. One woman has been hospitalized with slight injuries.

For nine days Metro workers have been protesting against austerity measures taken by the conservative-led Greek government as demanded by the foreign sponsors of Greece’s bailout plan. A unified wage scheme for public sector workers proposed by the government would slash their salaries by at least 25 per cent.

Protesters, joined by bus, tram and railway workers in solidarity on Friday, refuse to return to work despite harsh emergency legislation under which they could face five years in jail.

So far no one has been arrested under the emergency law as the authorities are reluctant to escalate the protests even further.

Athens metro′s union′s president, Antonis Stamatopoulos (L) take part in a meeting with Athens metro employees on strike at the network′s headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)
Athens metro’s union’s president, Antonis Stamatopoulos (L) take part in a meeting with Athens metro employees on strike at the network’s headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)

Athens metro employees on strikes barrycade themselves at network′s headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)
Athens metro employees on strikes barrycade themselves at network’s headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)

Athens metro employees on strike hold a meeting at their network′s headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)
Athens metro employees on strike hold a meeting at their network’s headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)

Commuters talk at the closed entrance to an urban rail station in Athens on January 24, 2013, as employees decided to strike to support striking metro employees , along with bus drivers , bringing capital′s public trasport to a standstill (AFP Photo / Louisa Gouliamaki)
Commuters talk at the closed entrance to an urban rail station in Athens on January 24, 2013, as employees decided to strike to support striking metro employees , along with bus drivers , bringing capital’s public trasport to a standstill (AFP Photo / Louisa Gouliamaki)

Athens metro employees on strike hold a meeting at their network′s headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)
Athens metro employees on strike hold a meeting at their network’s headquarters on January 24, 2013 in Athens (AFP Photo / Louisa Gouliamaki)

Tv crews gather outside Athens metro network′s headquarters on January 24, 2013, after government ordered a civil mobilisation to break their eight-day metro standstill (AFP Photo / Louisa Gouliamaki)
Tv crews gather outside Athens metro network’s headquarters on January 24, 2013, after government ordered a civil mobilisation to break their eight-day metro standstill (AFP Photo / Louisa Gouliamaki)

Athens riot police raid striking metro workers

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Some 300 Greek riot police stormed Athens’ metro depot to break up a sit-in by striking workers, police said.

The raid on the centre, which strikers protesting austerity measures had occupied on Thursday, took place at around 4:00 am (0200 GMT), police told AFP.

Four people were temporarily detained.

The government had ordered a civil mobilisation on Thursday to force the Athens metro staff to halt their strike, which has disrupted traffic in the Greek capital for over a week.

Unions reacted by calling a general transport standstill on Friday.

Hundreds of unionists gathered outside the metro depot after the police raid in support of the strike.

Metro staff oppose government plans to reduce their pay in line with wages in the broader public sector, part of reforms tied to the country’s massive EU-IMF loan bailout.

Prime Minister Antonis Samaras said Thursday: “The Greek people have sustained major sacrifice. I can allow no exceptions.”

The government said strikers had shown contempt for court rulings that had declared the metro strike illegal earlier this week.

Government spokesman Simos Kedikoglou said the strike was hurting the Greek economy, adding in televised remarks: “There have been court rulings on the issue and the law must be applied.”

A leftist party in the ruling coalition Thursday criticised the civil mobilisation, calling it “an extreme option”.

North Korea to target U.S. with nuclear, rocket tests

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SEOUL (Reuters) – North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its “sworn enemy”.

The announcement by the country’s top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

“We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States,” North Korea’s National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be “technically ready” for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang’s two earlier nuclear tests.

Thursday’s statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.

China’s Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the “relevant party” not to take any steps that would raise tensions.

“We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation,” ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

“After all these years and numerous rounds of six-party talks we can see that China’s influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats,” said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il’s Feb 16 birthday.

“North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement),” said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North’s statement was published on Thursday.

“Whether North Korea tests or not is up to North Korea,” Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

“We hope they don’t do it. We call on them not to do it,” Davies said after a meeting with South Korean officials. “This is not a moment to increase tensions on the Korean peninsula.”

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea’s 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT – compared with 13-18 kilotons for the Hiroshima bomb – and U.S. intelligence estimates put the 2009 test’s yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth’s atmosphere.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country’s military and nuclear programmes.

The older Kim died in December 2011.

“The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage,” the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)

Skyscraper ablaze in Moscow City, capital’s business hub (VIDEO, PHOTOS)

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image from twitter by user @Kirbase

image from twitter by user @Kirbase

One of skyscrapers in the Moscow City business district is ablaze in the center of the Russian capital.

­It’s reported to be one of the buildings under construction. The fire can be seen on the top floors of the building.

Construction workers have been evacuated from the site.

“The fire is located between the 22nd and 23rd floors of the 25-story building under construction” RIA Novosti reports, citing a source in Emergencies Ministry.

There is a strong smell of smoke in the area, witnesses report.

DETAILS TO FOLLOW

image from twitter by user @Kaklyugina
image from twitter by user @Kaklyugina

image from twitter by user @dternovskiy
image from twitter by user @dternovskiy

How Can We Reconcile Freedom-Loving Libertarianism with Tough Prosecution of Fraud?

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Liberty and Justice Are Not Irreconcilable

I voted for Gary Johnson (and am a huge fan of Ron Paul), and respect and fully-support the libertarian passions for freedom and free markets.

But I am also a tireless crusader for enforcing the rule of law.

You might assume that these are opposite philosophies. For example, a reader asks:

Your work on the dangers of the American nuclear industry has been really comprehensive, and you have drawn attention to the deception, manipulation, neglect, and willful ignorance of the nuclear industry. For example, I just watched the Al Jazeera video you posted earlier this year (3/12), in which the NRC and the nuclear industry are (rightly) criticized for waiting for harm to happen, instead of preventing it. At the same time, you identify as libertarian, and I believe you supported Gary Johnson in the presidential election. He is opposed to public regulation of industry and has said that post-harm lawsuits — for example, in medical contexts — are sufficient to encourage businesses to self-regulate for public safety. Could you please explain how you reconcile the libertarian position against regulation with your clear recognition that too-loose self-regulation of the nuclear industry imperils the public?

Nuclear Power Would Not Exist In a Free Market

Initially, it is undisputed that nuclear power plants would not exist if operators had to obtain funding and insurance through the free market. Private insurers won’t touch nuclear energy. Investors run the other way, because the odds of losing all of their investment are so high.

No private company in the world would operate a nuclear plant unless the government put a very low cap on liability. In many parts of the world, governments cap liability at a mere $13 billion dollars.

This is a little insane, given that “the risk of a nuclear catastrophe … could total trillions of dollars and even bankrupt a country”.

Indeed:

If there was a free market in energy, nuclear power would be over … immediately.

AP notes:

Nuclear power is a viable source for cheap energy only if it goes uninsured.

***

Governments that use nuclear energy are torn between the benefit of low-cost electricity and the risk of a nuclear catastrophe, which could total trillions of dollars and even bankrupt a country.

***

The cost of a worst-case nuclear accident at a plant in Germany, for example, has been estimated to total as much as €7.6 trillion ($11 trillion), while the mandatory reactor insurance is only €2.5 billion.

“The €2.5 billion will be just enough to buy the stamps for the letters of condolence,” said Olav Hohmeyer, an economist at the University of Flensburg who is also a member of the German government’s environmental advisory body.

The situation in the U.S., Japan, China, France and other countries is similar.

***

“Around the globe, nuclear risks – be it damages to power plants or the liability risks resulting from radiation accidents – are covered by the state. The private insurance industry is barely liable,” said Torsten Jeworrek, a board member at Munich Re, one of the world’s biggest reinsurance companies.

***

In financial terms, nuclear incidents can be so devastating that the cost of full insurance would be so high as to make nuclear energy more expensive than fossil fuels.

***

Ultimately, the decision to keep insurance on nuclear plants to a minimum is a way of supporting the industry.

“Capping the insurance was a clear decision to provide a non-negligible subsidy to the technology,” Klaus Toepfer, a former German environment minister and longtime head of the United Nations Environment Programme (UNEP), said.

U.S. News and World Report reports:

The disaster insurance for nuclear power plants in the United States is currently underwritten by the federal government, Cooper says. Without that safeguard, “nuclear power is neither affordable nor worth the risk. If the owners and operators of nuclear reactors had to face the full liability of a Fukushima-style nuclear accident or go head-to-head with alternatives in a truly competitive marketplace, unfettered by subsidies, no one would have built a nuclear reactor in the past, no one would build one today, and anyone who owns a reactor would exit the nuclear business as quickly as possible.”

See this and this.

In other words, this is not a free market. Instead, the public has funded the nuclear industry. As such, we – the owners – should get some control over how nuclear plants operate.

Likewise, the government created the mega-banks, big oil and the other mega-corporations.

Free Market Champions Demand Prosecution of Fraud

A strong rule of law is the main determinant of prosperity. On the other hand, failure to prosecute fraud is destroying our prosperity.

Nuclear meltdowns, the financial crisis and the Gulf oil spill all happened for the same reason: fraud to make a few more pennies, and a subsequent cover-up to try to protect the wrongdoers and continue “business as usual”. And see this.

This is not free market economics.

Indeed, the father of free market economics – Adam Smith – leading Austrian economists, and other free market advocates are for the prosecution of fraud:

There is a widespread myth that free market supporters are against regulation or prosecuting fraud.

In fact, Adam Smith — the father of free market capitalism — was for regulation of banks, and believed that trust is vital for a healthy economy. Because strong enforcement of laws against fraud is a basic prerequisite for trust, Smith would be disgusted by the lack of prosecution of Wall Street fraudsters today.

Smith railed against monopolies and their corrupting influence. And Smith was pro-regulation, so long as the regulation benefited the little guy, as opposed to the wealthiest:

When the regulation, therefore, is in support of the workman, it is always just and equitable; but it is sometimes otherwise when in favour of the masters.

Richard Posner — one of the leading proponents over the course of many decades for removing the reach of the law from the economy — has now changed his mind.

So has another leading proponent of deregulation and turning a blind eye towards fraud: Alan Greenspan.

While some promoters of a fake version of Austrian economics are anti-regulation and against prosecuting fraud, the main Austrian economists were unambiguously for them.

William K. Black — professor of economics and law, and the senior regulator during the S&L crisis — notes that leading Austrian free market economists said that fraud must be prosecuted:

Real Austrian economists … hate elite frauds and want them prosecuted vigorously. Ludwig von Mises and Friederich Hayek are the two most famous Austrian economists.

Hayek, F.A. The Road to Serfdom

To create conditions in which competition will be as effective as possible, to prevent fraud and deception, to break up monopolies– these tasks provide a wide and unquestioned field for state activity.

The Constitution of Liberty

There remains, however, one other kind of harmful action that is generally thought desirable to prevent and which at first might seem distinct. This is fraud and deception. Yet, though it would be straining the meaning of words to call them ‘coercion,’ on examination it appears that the reasons why we want to prevent them are the same as those applying to coercion. Deception, like coercion, is a form of manipulating the data on which a person counts, in order to make him do what deceiver wants him to do. Where it is successful, the deceived becomes in the same manner the unwilling tool, serving another man’s ends without advancing his own. Though we have no single word to cover both, all we have said of coercion applies equally to fraud and deception.

With this correction, it seems that freedom demands no more than that coercion and violence, fraud and deception, be prevented, except for the use of coercion by government for the sole purpose of enforcing known rules intended to ensure the best conditions under which the individual may give his activities a coherent, rational pattern…..

Liberty not only means that the individual has both the opportunity and the burden of choice; it also means that he must bear the consequences of his actions…. Liberty and responsibility are inseparable.

Mises, L.

Government ought to protect the individuals within the country against the violent and fraudulent attacks of gangsters, and it should defend the country against foreign enemies.

Black also notes that fraud is a leading cause of financial bubbles and malinvestment — two of the greatest sins which Austrian economists rightly fight against.

Unless financial fraud is prosecuted, bubbles will be blown … and when they burst, the economy will tank. Fraud — along with bad Federal Reserve policy — is what causes bubbles in the first place.

The Proof Is In the Pudding: Fewer Prosecutions Equals a Worse Economy

Obama has prosecuted fewer financial crimes than any president in decades — less than Ronald Reagan, less than George H.W. Bush, less than Bill Clinton, and less than George W. Bush.

The economy is worse than it has been since the Great Depression, if not before.

See the connection? See this and this.

Everyone Supports Laws Protecting Contract and Private Property Rights

Even the most radical free market advocates support laws protecting contract and private property rights. In other words, they support the judicial branch of government and the basic laws Congress passes to support such rights.

There are obviously good, pro-competitive laws and bad, anti-competitive laws.

Paul Craig Roberts — a true conservative, who was a Wall Street Journal editor and Assistant Secretary of the Treasury under Ronald Reagan, and is widely credited with being the “father of supply-side economics” — points out:

Regulation can increase economic efficiency and … without regulation external costs can offset the value of production.

***

 

Thirty-three years ago in an article in the Journal of Monetary Economics (August 1978), “Idealism in Public Choice Theory,” I developed a model to assess the benefits and costs of regulation. I argued that well-thought-out regulation could be a factor of production that increases GNP. For example, regulation that contributed to the quality and safety of food and medicines contributed to specialization in production and lower costs, and regulations enforcing contracts and private property rights add to economic efficiency.

 

On the other hand, bureaucracies build their empires and extend their regulations into the realm of negative returns. Moreover, as regulations increase, economic managers spend more time in red tape and less in productive activity. As rules proliferate, they become contradictory and result in paralysis.

I had hopes that my analysis would result in a more thoughtful approach to regulation, but to no avail. Liberals continued to argue that more regulation was better, and libertarians maintained than none was best.

Do Anti-Law Advocates Really Want Anarchy?

All sports need a referee. Some players will be bigger or more talented than others, which is great. They have a better chance of outcompeting the other guy and winning.

But without basic rules and referees, ruthless players might use a knife or kick the other guy in the knee. Perhaps we could suspend all rules, and maybe everyone would whip out a knife break the other guy’s kneecap. That’s fine … but that’s not the game of football.

Radicals who believe that we should not have any laws against fraud are implicitly arguing for anarchy. They might not use that word, but that is what they’re arguing for.

But the same Founding Father who argued for periodic revolutions to keep the government honest also argued against tearing down something unless you have something better in mind to replace it? Thomas Jefferson, the most vocal advocate of the citizens’ right to revolt to ensure honest government also cautioned against tearing something down unless it was for the express purpose of replacing it with something better.

Real, deep-thinking anarchists (as opposed to those using fake anarchy philosophy in order to promote lawlessness by the super-elite) are not for destroying all organization. Instead, they argue for self-organization and self-regulation. See this, this and this.

JP Morgan and Goldman Sachs aren’t reining in one another’s fraud. Bank of America and MF Global didn’t police each other’s fraud.  Tepco and BP didn’t make sure the companies made accurate reports about their safety measures. Solyndra and Koch Industries didn’t guard against abuse by the other company.

So if one wants to argue that the Federal government should not regulate financial players, fine (perhaps our country is too big and complex to manage, and the federal government has become too corrupt) … but who should?

The states? Cities? Communities? Neighbors?

Human beings have the ability to form social contracts. Our D.C. government has largely breached it social contract with the people.

But we shouldn’t tear down the federal government unless we replace it with something better.

No one wants to tear down the state of organization so completely that we go back to monkeys (without the ability to talk), or one-celled critters . . . so the question is how do we want to organize?

Do you want to live as a “savage”? In reality, the natives had survival skills, cultural traditions, and knowledge developed over many hundreds or thousands of years (including knowledge gained before the migration from Asia to America), stored in the database of oral traditions. The settlers had traditions and knowledge as well. If we tear away all of that organization, life is going to be pretty challenging.

It is easy for a teenager to criticize his parents, but a lot harder to actually create a better adult life for himself. A teenager looks silly and immature when he criticizes everything his parents do without understanding the challenges he’ll face as an adult. But a young person who rebels against his parents and then creates a better adult life is doing important and heroic work.

In other words, anarchy as an economic model could work if economic players organized in such a way as to police against fraud and criminal behavior (the equivalent of pulling out a knife or taking out someone’s kneecap in the middle of a football game).

This is a long-winded way of saying that we should not stop the government from enforcing fraud laws unless we come up with a more effective way to stop fraud.

The Real Problem …

While liberals tend to distrust big corporations and conservatives tend to distrust the federal government, it is really the malignant, symbiotic relationship between the two is the root problem.

Too much government overreach? Giant unaccountable corporations?

Maybe … but the root problem is that corrupt government officials and corrupt corporate fatcats have merged into a crime syndicate.

Do you get it?   Before we can have a real free market, we need to burst the bubble of fraud.

Before we can have a functioning government, we need to stand up to corrupt government officials.

We all need to step out of the left-right dichotomy which is distracting us and dumbing us down.

We need liberty and justice.

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Nick Clegg Suggests Coalition Cut Too Deeply

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Figures showing whether Britain is heading for an unprecedented triple-dip recession will be unveiled later.

Some experts believe gross domestic product (GDP) will have fallen by 0.1% in the final quarter of 2012.

If the economy then contracts in the current quarter the nation would be officially back in recession.

Hopes of a rebound are fading after a snow-hit start to 2013, which some estimate cost Britain more than £500m-a-day in lost output.

A fourth-quarter downturn would be a sharp reversal of the 0.9% recovery seen in the third quarter, when output was fuelled by one-off factors such as the Olympics and as the economy clawed back activity lost during the Queen’s Diamond Jubilee holiday.

Bank of England governor Sir Mervyn King has already warned that the quarter would be “considerably weaker”, while the IMF believes the UK contracted by 0.2% overall in 2012.

It also expects expansion of just 1% during this year.

Today’s figures from the Office for National Statistics (ONS) represent the initial estimate of GDP and are subject to revision over subsequent months.

But the run of gloomy economic indicators increases the threat to the UK’s prized AAA rating, with all three major ratings agencies placing the country on negative outlook.

Chris Williamson, chief economist at Markit, said the AAA threat will “intensify significantly” if figures confirm a contraction at the end of last year.

The CEBR economic consultancy believes the economy may have contracted by as much as 0.5% in the final quarter of 2012 and by 0.1% over the whole year.

Construction has so far been the only bright spot, according to recent industry surveys, with activity surging to a 15-month high in December.

But it accounts for only 10% of the economy and the far bigger services sector has not fared so well.

The first official estimate of fourth-quarter GDP will not include overall household consumer spending figures, which will be taken into account in the second estimate.

Final snowfall before flood fears

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A final fall of heavy snow is set to sweep across the country, ahead of flooding fears over the weekend.

The worst of the snow will hit Scotland, northern England, the Midlands and the east, where up to seven inches is predicted over high ground, which is likely to cause more disruption for schools and travel networks.

The latest band of wintry weather will begin as heavy rain in the west of the UK before turning to snow as it moves eastwards.

But weather experts have warned of the risk of flooding on Saturday, as heavy rain moves in and rising temperatures spark a rapid thaw of the built-up snow and ice. Temperatures will steadily rise from Saturday to an average of 4C before reaching more than 10C in the south on Sunday followed by wet and windy weather next week.

The death toll during the recent cold snap hit double figures on Thursday. The latest victim was a 42-year-old man who died after his car careered into a river as he was driving his daughter on the school run along a bridle path near the Monsal Trail, north of the A6 in Derbyshire.

Other casualties of the cold spell include postman John Bircham, 57, who collapsed soon after he was towed out of a snowdrift in Dulverton, Somerset, on Saturday, and Bernadette Lee, 25, who was found collapsed in the snow in Deal, Kent, on Sunday following a night out.

The Met Office has 12 amber warnings in place from the Midlands up to central England, urging the public to be prepared for likely disruption caused by the heavy snow. There are also a number of yellow warnings in Wales, south west England and London and the South East. It warned that strong winds will also lead to drifting and blizzard-like conditions, particularly over higher level roads in the north.

Chris Burton, a forecaster at MeteoGroup, the weather division of the Press Association, said: ” A band of heavy rain will hit the west of the UK and move across eastwards throughout the day, quickly turning to snow. The greatest risk of heavy snow will Scotland, northern England, the Midlands and eastern parts of England which will widely see up to four inches, and up to an inch in the south.”

“There is a localised flooding risk, particularly in Wales and the South West as heavy rain falls and warmer temperatures cause a rapid melt of the snow and ice which has built up in the last few weeks.”

The Environment Agency has warned of the risk of minor localised flooding in some areas due to the rapid thaw. Flood risk manager Phil Rothwell said: “A combination of rain and snow melt over the weekend will increase the risk of flooding, especially in south west England, Wales, the West Midlands and northern England. We are closely monitoring the situation and have teams ready to respond to any potential flooding.”

UK’s future in EU ‘on a knife-edge’

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Britain’s future in the European Union would rest on a knife-edge if a referendum was held immediately, polling has indicated.

According to research carried out for The Times, 40% of voters back an UK exit while 37% want to keep ties with Brussels and 23% do not know.

The Populus survey would translate to a 53-47 vote in favour of leaving after other factors, such as likelihood to vote, were taken into account, according to the newspaper.

Prime Minister David Cameron has insisted he wants Britain to remain within the EU, although under a renegotiated settlement. Meeting fellow EU leaders for the first time since announcing his plan to stage an in/out referendum on UK membership, he insisted the British people were not “turning our backs on Europe”.

But he told them Europe was being “out-competed, out-invested, out-innovated” and must be transformed into an engine for growth.

Attending the World Economic Forum in Davos, Switzerland, Mr Cameron discussed the proposals in a 15-minute meeting with German chancellor Angela Merkel, who has indicated she is open to a “fair compromise” with Britain.

Deputy Prime Minister Nick Clegg said he is “still none the wiser about exactly what this great re-negotiation means”.

In an interview with The House magazine, he said: “It was a well-crafted speech and obviously very well delivered. But in terms of the content, look, the Conservative Party will obviously ride away with headlines about the referendum today. My own view is that it will be a tactical victory today for a strategic mistake tomorrow.”

Meanwhile, Labour leader Ed Miliband sought to clarify his own position on Europe, after appearing to rule out an in/out referendum in the House of Commons. He said: “I am being clear. I do not think it makes sense, now, to commit to an in/out referendum years ahead.

“And the reason why it does not make sense is clear from what the priority of the British people is. Their priority is jobs and growth and living standards and I’ve got to say what I think the right priority is and I do not believe now it makes sense to commit to an in/out referendum.”

‘US should realize that world has changed’ — Venezuelan VP (RT Exclusive)

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The US has lots of troubles dealing with other nations as they haven’t come to grips with the new global reality, Venezuelan Vice-President Nicolas Maduro told RT in an exclusive interview. He also spoke about the health of President Chavez.

Speaking to RT Spanish host Eva Golinger in Caracas, Nicolas Maduro shared his views on the political and economic future of Venezuela and Latin America’s fight for independence.

Eva Golinger: We would like to ask you a question that’s on everybody’s mind: how is President Chavez doing? Do you have an update on his present condition? Will he be coming back to Venezuela soon?

Nicolas Мaduro: We’ve already said that President Chavez’s recuperation period is almost over. It has been a long and difficult process. The president was aware of the odds all the way, but his vigor and energy are simply amazing. The surgery was a very difficult. President Chavez suffered internal bleeding, which was a very alarming sign. I should say that Comandante Fidel Castro and his team were with Chavez and his relatives the whole time. We are very grateful for that. For the concern on the part of Comandante Castro, Cuban President Raul Castro, and the doctors.

Now President Chavez feels better than at any other time during his recuperation. I’m flying to Havana to visit the President soon. He will give me necessary instructions and messages to be announced at the summit of the Community of Latin American and Caribbean States. So you could say that President Chavez is in the fight.

EG: Is there any hope that he may return to Venezuela any time soon?

NM: We remain optimistic, but there are too many factors at play. We need to talk to the doctors and President Chavez himself to choose the best moment. As we have repeatedly told Mr. Chavez, and the Venezuelan people know it well, the most important thing now is his recovery. Everybody knows how President Chavez has invested all his efforts and energy into his country, into fighting for the independence of Latin America, how he has persevered in his anti-imperialist struggle for social justice worldwide. It was President Chavez who went vocal about global warming, so that everyone could find out the truth. It was he who championed the struggle against global plunder and the neoliberal policies that are killing Europe.

It was President Chavez who adamantly raised the banner of protecting the Palestinian people, when they were attacked. When so many in the Arab world chose to keep silent out of fear, President Chavez raised that banner and the Arab people cheered him.

So President Chavez was at the helm of great campaigns for the sake of humanity, and today his role in the world is recognized by millions. Here’s why this RT interview is so important for all the viewers in the US, Russia and across the world: we know we are speaking to the hearts of millions on the planet, those who believe in President Chavez, admire him, follow him and love him deeply.

We tell them that the president is fighting the illness; that we, his people, are waiting here for him to come back soon. And one day that will definitely happen.

EG: Speaking of struggle, there is another question I want to ask you. Over the last few days, there has been talk of restoring the relations between Venezuela and the United States, and there has already been a kind of negotiation on the subject between the two governments.

NM: The US is, in fact, an empire that was established as a union of 13 independent colonies located on North America’s East coast. Throughout the 19th century, this nation expanded its territory, asserted its military might and imposed its policies and its trade on neighboring countries, and in the 20th century, it emerged as a global superpower. Ever since the Bolivarian era the US has looked down on Latin America and the Caribbean as its backyard. But President Chavez and the Bolivarian Revolutionary Movement expect that, sooner rather than later, the elite that run that mighty empire will find themselves forced to recognize our region’s independence and respect our leaders.

This is absolutely inevitable. Yet it’s not that they will do us a favor and grant us independence, like we are a former colony of theirs, but as a result of our own efforts. Today, the nations of Latin America and the Caribbean are winning independence once more, just as they did back in the 19th century. In Venezuela, we run our own country, thanks to Hugo Chavez and the victorious people’s revolution. And in tune with the other nations of our continent, our government has conveyed a message to President Obama on behalf of President Chavez during a recent ministerial meeting, saying that we wouldn’t mind improving our relations with the US and restoring mutual respect between our nations as far as possible.

But whenever we would attempt a rapprochement with the Obama administration, we would always face sabotage from the conservatives who build the core of the US military-industrial and media complex, which oppressively controls the entire nation, the same way as it oppresses the rest of the world.

That said, we wouldn’t mind restoring a fully functional relationship with the US based on mutual respect. If it eventually works out, we would be happy with that. But we will not be dominated.

The US is the only country in the world that has that much trouble dealing with other nations, because they haven’t come to grips with the new global reality yet. But they will have to soon. We have been telling them for years, and it’s time they should realize that the world has changed, and they can no longer dominate through air strikes and intimidation.

EG: Mr. Vice-President, not long ago President Chavez appointed a new foreign minister, but you held this position for six years. What are the priorities of Venezuela’s foreign policy now?

NМ: President Chavez has drafted a program that we are calling Our Homeland’s Plan for 2013-2019. It lists five main strategic, or long-term, goals, which are: building a true democracy in Venezuela, achieving independence and establishing a new socialism. The fourth strategic goal has an international dimension. It reflects the vision of Simon Bolivar. He talked about balance in the world, about the need for Latin American countries, which gained independence from Spanish control 200 years ago, to present a strong united front. He wanted our states to create a union that would make aggressive empires with big military clout that dominated in the international arena back then respect our region and our right to development.

President Chavez revived this doctrine and turned it into our foreign policy. It’s very easy to explain. The fourth strategic goal is: to facilitate the creation of a multi-polar world in which there will be no domineering empires. In terms of our region, it means that we need to strengthen the Bolivarian Alliance for the Peoples of Our America (ALBA) and Petrocaribe. These institutions help forge new economic and social models of cooperation and development in our region. We also aim to strengthen the Union of South American Nations — UNASUR — and promote the Community of Latin American and Caribbean States (SELAC) that has been set up. It was Bolivar’s dream, and we brought it to life here in Caracas in December 2011.

Internationally, we need to bolster our strategic alliances with the countries that play a key role both locally and globally, in this new multi-polar world that is emerging. So the strategic alliance between our region and Russia, China and India is growing stronger thanks to our active interaction and through economic and political projects with BRICS. We are convinced there are a lot of opportunities to create a new world order, which will be the result of a continuous and arduous struggle against imperialistic views and concepts in world politics.

EG: And now could you tell us a little bit about your domestic policies? The new administration has just got down to work in its 2013-2019 term. What issues are still outstanding?

NM: In the social sector we need to continue our fight against poverty. It’s our curse, a painful legacy of the 500 years under foreign oppression. We should not forget about all that destruction that colonial empires had brought to our land. I am talking about Venezuela specifically. This was a difficult burden that our country had to carry throughout the whole 19th century. Then our region suffered from North American hegemony. Venezuela became an oil rig to them, an oil colony. They destroyed the natural economic foundations that our republic enjoyed in the 17th, 18th, and 19th centuries. Our specialty was food production, we had rich agricultural traditions. We were also influenced by the military dictatorship, established in our country by US transnational corporations, the so-called Bermuda Companies. So they basically implemented an oil-dependent model by establishing the military dictatorship of Juan Vicente Gómez. This has set a course for the whole 20th century. The second half of the 20th century was plagued by terrible corruption, our oil resources were misappropriated. Poverty was at 80 per cent. The goal of our revolution is to bring this number down to zero. This is one of the goals set by Comandante Chavez, our president, for the next six years. And we’ll get it done. We have already brought down the poverty level from 27per cent to 7 per cent.

A large number of our people are still below the poverty line, but we are working on solving this problem. For example, we are implementing a new education plan. Good education, that is also free, is one of the major achievements of the Bolivarian government. We are also implementing reforms for such areas as healthcare, food security and employment. We keep an eye on the wage levels of the working people. By the end of 2012, unemployment dropped from between 20 and 25 per cent to 5 per cent. We have achieved a lot in the social care sector. While in Europe unemployment is at 20-25 per cent and governments cut pensions and salaries, our 21st century revolution is helping us to establish a social model that allows the Venezuelan people to build their own country.

EG: Back in December, prior to his latest surgery, President Chavez explicitly announced that you would be his successor in case he can’t remain in office and at the helm of the Bolivarian Revolution any longer. How would you describe the personality of Nicolas Maduro?

NM: Each of us is first and foremost a fighter, a man of the street. We walk to work, or take the subway. We’ve been engaged in struggle ever since we were kids. Caracas and its various locations have been our battleground, where we engaged in the student movement and the alternative union movement, which dates back to the 1990s, just as Hugo Chavez emerged as a leader. Once he came out in public and made his address to the nation on February 4, 1992, wearing his beret, we told ourselves, “This is the road we shall take.” And ever since that day, there wasn’t a day in my life when I wouldn’t be working for Chavez, because working for him means working for the sake of the country.

That will be the case till our last breath.

We don’t believe in “making a successful career in politics,” as some people’s aspirations are described. That kind of thinking belongs in a bourgeois political culture, which is no longer in our country. The only career we know is one of revolutionary struggle, as soldiers fighting for the cause of Chavez. This is who we are: soldiers who fight for the cause of Chavez, and we’ll go wherever our duty takes us.

EG: Mr. Vice President, thank you so much for the interview and for being with us.

NM: Many thanks to you and the RT channel.

Market Buzz: No stimulus for growth

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John Moore / Getty Images / AFP

John Moore / Getty Images / AFP

Russian markets are expected to open in the red following a rather controversial trading day on Thursday. Both key Russian indices dropped, with the RTS lowering by 0.04% and the MICEX sliding by 0.24%.

Friday’s trading will greatly depend on external moving factors as no major corporate news is expected in Russia. It’s most likely the market will show slight correction due to lack of significant reasons for the growth, which, however, may appear at the beginning of next week.

European markets finished mostly higher on Thursday. The FTSE 100 was up 1.09%, while France’s CAC 40 is up 0.70% and Germany’s DAX was up 0.53%.

North American markets finished mixed to lower. The Dow Jones rose by 0.33%, while the S&P 500 closed unchanged.

The US market will also depend on the statistics coming throughout the day. Real estate market data is expected to arrive with predicted increase in new homes sales to grow from 377,000 in November to 388,000 in December. However, investor sentiment will largely depend on the issuing of annual corporate reports. Consumer companies are expected to share their data, including a much-anticipated report from P&G.

Asian markets are mixed. The Nikkei 225 is trading 2.28% higher, while the Hang Seng is leading the Shanghai Composite lower. They are down 0.32% and 0.22% respectively.

Royal torture ring: Bahraini princess on trial

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A Bahraini princess is in court for the torture of three pro-democracy activists in detention. The princess’s case is the latest in a string of cases of torture and violence has seen the light in a report issued by Bahraini opposition.

Princess Nora Bint Ebrahim al-Khalifa who serves in Bahrain’s Drugs Control Unit, allegedly collaborated with another officer to torture three activists held in detention following a pro-democracy rally against the island kingdom’s monarchy.

The princess categorically denies the charges of torture set against her.

Two of the princess’s alleged victims were Doctors Ghassan Daif and Bassem Daif, who went to help the hundreds wounded when police opened fire with teargas and birdshot during protests in 2011. They were taken into custody in March of that year when it is thought that al-Khalifa tortured them.

Ayat al-Qurmazi
Ayat al-Qurmazi

The third victim, 21-year-old Ayat al-Qurmazi, was arrested for public reading of inflammatory poetry criticizing the royal family. She claims her blindfold slipped while she was being tortured and she caught a glimpse of al-Khalifa.

As Muslim women have never before been known to take part in interrogations and tortures, Nora Al-Khalifa stands out as the grossest character in the human rights activists’ report, RT’s Nadezhda Kevorkova said.

Princess Nora’s case is the latest in a series of torture scandals highlighted in a report by the Bahrain Forum for Human Rights.

A 55-pages report titled ‘Citizens in the Grip of Torture’ is based on the nine interviews with named and anonymous witnesses. It was published both in English and Arabic.

The report states that two of the Bahraini King’s sons Nasser Bin Hammad Al-Khalifa and Khalid Bin Hammad Al-Khalifa, as well as two other members of the royal family, Khalifa Bin Ahmed Al-Khalifa and Nora Bint Ebrahim Al-Khalifa, directly took part in torturing the activists.

Nasser bin Hamad Al Khalifa (L), Khalid bin Hamad Al Khalifa (M), Khalifa bin Ahmed Al Khalifa (R). (Photos from Report: Citizens in the Grip of Torturers)
Nasser bin Hamad Al Khalifa (L), Khalid bin Hamad Al Khalifa (M), Khalifa bin Ahmed Al Khalifa (R). (Photos from Report: Citizens in the Grip of Torturers)

Torture stories include rare details that Muslims usually prefer to shun for ethical reasons, Bahraini opposition activists told Kevorkova.

After getting numerous letters from torture victims who mentioned the four members of the royal family among the arresters and torturers, the report’s authors decided it was vital to get an investigation going, RT’s Kevorkova said.

Included in the report are short CVs of those four members of the Bahrain’s royal family accused of human rights violations.

Nasser Bin Hamad, the fourth son of the King Hamad, is a colonel and commander of Bahrain’s royal guard. Bin Hamad, his 23-year-old brother, has also held a number of senior positions despite his young age and is married to Saudi Arabian King’s daughter.

The other two Al-Khalifas directly responsible for cases of torture and violence as stated in the report are Colonel Khalifa Bin Ahmed, a high-ranking police officer dismissed from his post in September 2011, and Lieutenant Nora Bint Ebrahim Al-Khalifa of Bahrain’s Drug Enforcement Administration.

Tortured for reading verses

Poet Ayat Al-Qurmozy was arrested in March 2011 after reciting a poem against the Bahraini regime during a peaceful demonstration in Pearl Roundabout. She was detained by masked men dressed in civilian clothing. On her release, al-Qurmozy told of tortures used on her by both men and women. One of the women involved was identified as Nora al-Khalifa.

The report states that Nora spat on al-Qurmozy and into her mouth, slapped her in the face repeatedly, administered electric shocks and shouted anti-Shia slurs.

On the eighth day of her arrest, al-Qurmozy was brought blindfolded into a room full of men, documents the report. They shouted abuse at her and demanded she tell them by whom she was given the verses and how much she was paid for reading them.

“I was surprised by a woman grabbing me and slapping me hard in the face… When she was screaming, cursing and slapping me hard on my face, the blindfold came down off my eyes and I saw her face a bit but they rushed to lift it,” al-Qurmozy later said, as cited in the report.

Al-Qurmozy was then brutally beaten, and Nora gave her electric shocks every time she lost consciousness, the report says. After that Nora allegedly went on torturing the young poet every night, beating her on the face and spitting on her every time she found her without a blindfold.

Threatened by rape, the poet girl was forced to confess to her ‘guilt’ in front of a camera. But her torture continued after al-Qurmozy was thrown into a car, the report says, elaborating on how Nora slapped her on the head, threatened to cut out her tongue, spat and put a wooden bathroom broom into her mouth and beat her continually. All these abuses were witnessed by another arrested woman, Jalila Salman, who was put in the same car.

Tortured for taking part in demonstration

Sheikh Mohammad Habib al-Mekdad, president of Zahraa Association for Orphans, was arrested at home in April 2011 by a group of 50-60 people wearing civilian clothes and masks. He was still in detention at the time of the report.

Mohammed Habib Al Mekdad
Mohammed Habib Al Mekdad

Al-Mekdad was stripped naked and beaten, and then put in pitch-dark prison cell, where he was continually tortured, the report says. According to al-Mekdad, he was hung head down, beaten for hours, and had sensitive body parts exposed to electric shock.

Prince Nasser Bin Hamad came to interrogate al-Mekdad and other detainees, making sure they recognized him before their questioning, the report says. On learning that al-Mekdad took part in a Safriya protest march in front of the Bahraini king’s palace, where some people shouted “Down with King Hamad,” the prince began beating him.

Prince Nasser then supervised the torture in person, Al-Mekdad said at the February 2012 court trial according to the report. There he showed more than 50 electric shock traces on his body and told the judge he was tortured by a drill piercing his leg and humiliated by spitting in his mouth. Prince Nasser forced al-Mekdad to kiss pictures of the royal family in between the torture sessions.

None of these words were taken down in the court, and the judge asked al-Mekdad to remain silent, saying that “this court has its respect,” the report states.

Tortured for SMS

This is what happens in Bahrain if the king’s son finds a suspicious SMS in your phone, RT’s Kevorkova said, citing the story of the man speaking on condition of anonymity.

According to the report, the man was stopped at a checkpoint near Safriya Palace in May 2011 while driving in a car with his wife and children. He recognized one of the patrolmen as Prince Khalid Bin Hamad. Unsatisfied with the fact that nothing was found in the car, the prince started searching through text messages on the man’s phone, and found an old SMS on the Pearl Roundabout demonstration.

The prince then ordered the man’s brother be called to take the woman and children home, but on his arrival both were arrested, the report says. They were thrown to the ground, beaten and forced “to repeat the royal greeting,” with Khalid Bin Hamad ordering to beat them again for every royal family member’s name they didn’t know.

The men were also forced to eat hot chili peppers and insult some opposition figures. The reports states that the police has also started beating the men on coming to the scene.

Both were sentenced to 60 days in prison and dismissed from their jobs.

Another man cited in the report was also arrested at a checkpoint after policemen noticed his car was parked near Pearl Roundabout and took the car’s number down.

For that he was put in al-Qalaa prison and tortured daily with the use of special devices and techniques, including chaining, limb piercing and beating with clubs, the report claims. He was also deprived of sleep and his religious practices, the report adds.

Prince Nasser Bin Hamad allegedly supervised the man’s torture, which was carried out by foreigners.

“This is not Iran, we came to you from Iraq, and we are Saddamists,” they shouted as they tortured him, according to the report.

The man was cited as saying that his friend Karim Fakhrawi, who was also detained, died during one such torture session.

RT sent a letter to Bahraini Information Affairs Authority last week asking for the comment on the report, but has so far not received an answer.

­RT’s Nadezhda Kevorkova contributed to this report

Royal torture ring: Bahraini princess on trial

0

A Bahraini princess is in court for the torture of three pro-democracy activists in detention. The princess’s case is the latest in a string of cases of torture and violence has seen the light in a report issued by Bahraini opposition.

Princess Nora Bint Ebrahim al-Khalifa who serves in Bahrain’s Drugs Control Unit, allegedly collaborated with another officer to torture three activists held in detention following a pro-democracy rally against the island kingdom’s monarchy.

The princess categorically denies the charges of torture set against her.

Two of the princess’s alleged victims were Doctors Ghassan Daif and Bassem Daif, who went to help the hundreds wounded when police opened fire with teargas and birdshot during protests in 2011. They were taken into custody in March of that year when it is thought that al-Khalifa tortured them.

Ayat al-Qurmazi
Ayat al-Qurmazi

The third victim, 21-year-old Ayat al-Qurmazi, was arrested for public reading of inflammatory poetry criticizing the royal family. She claims her blindfold slipped while she was being tortured and she caught a glimpse of al-Khalifa.

As Muslim women have never before been known to take part in interrogations and tortures, Nora Al-Khalifa stands out as the grossest character in the human rights activists’ report, RT’s Nadezhda Kevorkova said.

Princess Nora’s case is the latest in a series of torture scandals highlighted in a report by the Bahrain Forum for Human Rights.

A 55-pages report titled ‘Citizens in the Grip of Torture’ is based on the nine interviews with named and anonymous witnesses. It was published both in English and Arabic.

The report states that two of the Bahraini King’s sons Nasser Bin Hammad Al-Khalifa and Khalid Bin Hammad Al-Khalifa, as well as two other members of the royal family, Khalifa Bin Ahmed Al-Khalifa and Nora Bint Ebrahim Al-Khalifa, directly took part in torturing the activists.

Nasser bin Hamad Al Khalifa (L), Khalid bin Hamad Al Khalifa (M), Khalifa bin Ahmed Al Khalifa (R). (Photos from Report: Citizens in the Grip of Torturers)
Nasser bin Hamad Al Khalifa (L), Khalid bin Hamad Al Khalifa (M), Khalifa bin Ahmed Al Khalifa (R). (Photos from Report: Citizens in the Grip of Torturers)

Torture stories include rare details that Muslims usually prefer to shun for ethical reasons, Bahraini opposition activists told Kevorkova.

After getting numerous letters from torture victims who mentioned the four members of the royal family among the arresters and torturers, the report’s authors decided it was vital to get an investigation going, RT’s Kevorkova said.

Included in the report are short CVs of those four members of the Bahrain’s royal family accused of human rights violations.

Nasser Bin Hamad, the fourth son of the King Hamad, is a colonel and commander of Bahrain’s royal guard. Bin Hamad, his 23-year-old brother, has also held a number of senior positions despite his young age and is married to Saudi Arabian King’s daughter.

The other two Al-Khalifas directly responsible for cases of torture and violence as stated in the report are Colonel Khalifa Bin Ahmed, a high-ranking police officer dismissed from his post in September 2011, and Lieutenant Nora Bint Ebrahim Al-Khalifa of Bahrain’s Drug Enforcement Administration.

Tortured for reading verses

Poet Ayat Al-Qurmozy was arrested in March 2011 after reciting a poem against the Bahraini regime during a peaceful demonstration in Pearl Roundabout. She was detained by masked men dressed in civilian clothing. On her release, al-Qurmozy told of tortures used on her by both men and women. One of the women involved was identified as Nora al-Khalifa.

The report states that Nora spat on al-Qurmozy and into her mouth, slapped her in the face repeatedly, administered electric shocks and shouted anti-Shia slurs.

On the eighth day of her arrest, al-Qurmozy was brought blindfolded into a room full of men, documents the report. They shouted abuse at her and demanded she tell them by whom she was given the verses and how much she was paid for reading them.

“I was surprised by a woman grabbing me and slapping me hard in the face… When she was screaming, cursing and slapping me hard on my face, the blindfold came down off my eyes and I saw her face a bit but they rushed to lift it,” al-Qurmozy later said, as cited in the report.

Al-Qurmozy was then brutally beaten, and Nora gave her electric shocks every time she lost consciousness, the report says. After that Nora allegedly went on torturing the young poet every night, beating her on the face and spitting on her every time she found her without a blindfold.

Threatened by rape, the poet girl was forced to confess to her ‘guilt’ in front of a camera. But her torture continued after al-Qurmozy was thrown into a car, the report says, elaborating on how Nora slapped her on the head, threatened to cut out her tongue, spat and put a wooden bathroom broom into her mouth and beat her continually. All these abuses were witnessed by another arrested woman, Jalila Salman, who was put in the same car.

Tortured for taking part in demonstration

Sheikh Mohammad Habib al-Mekdad, president of Zahraa Association for Orphans, was arrested at home in April 2011 by a group of 50-60 people wearing civilian clothes and masks. He was still in detention at the time of the report.

Mohammed Habib Al Mekdad
Mohammed Habib Al Mekdad

Al-Mekdad was stripped naked and beaten, and then put in pitch-dark prison cell, where he was continually tortured, the report says. According to al-Mekdad, he was hung head down, beaten for hours, and had sensitive body parts exposed to electric shock.

Prince Nasser Bin Hamad came to interrogate al-Mekdad and other detainees, making sure they recognized him before their questioning, the report says. On learning that al-Mekdad took part in a Safriya protest march in front of the Bahraini king’s palace, where some people shouted “Down with King Hamad,” the prince began beating him.

Prince Nasser then supervised the torture in person, Al-Mekdad said at the February 2012 court trial according to the report. There he showed more than 50 electric shock traces on his body and told the judge he was tortured by a drill piercing his leg and humiliated by spitting in his mouth. Prince Nasser forced al-Mekdad to kiss pictures of the royal family in between the torture sessions.

None of these words were taken down in the court, and the judge asked al-Mekdad to remain silent, saying that “this court has its respect,” the report states.

Tortured for SMS

This is what happens in Bahrain if the king’s son finds a suspicious SMS in your phone, RT’s Kevorkova said, citing the story of the man speaking on condition of anonymity.

According to the report, the man was stopped at a checkpoint near Safriya Palace in May 2011 while driving in a car with his wife and children. He recognized one of the patrolmen as Prince Khalid Bin Hamad. Unsatisfied with the fact that nothing was found in the car, the prince started searching through text messages on the man’s phone, and found an old SMS on the Pearl Roundabout demonstration.

The prince then ordered the man’s brother be called to take the woman and children home, but on his arrival both were arrested, the report says. They were thrown to the ground, beaten and forced “to repeat the royal greeting,” with Khalid Bin Hamad ordering to beat them again for every royal family member’s name they didn’t know.

The men were also forced to eat hot chili peppers and insult some opposition figures. The reports states that the police has also started beating the men on coming to the scene.

Both were sentenced to 60 days in prison and dismissed from their jobs.

Another man cited in the report was also arrested at a checkpoint after policemen noticed his car was parked near Pearl Roundabout and took the car’s number down.

For that he was put in al-Qalaa prison and tortured daily with the use of special devices and techniques, including chaining, limb piercing and beating with clubs, the report claims. He was also deprived of sleep and his religious practices, the report adds.

Prince Nasser Bin Hamad allegedly supervised the man’s torture, which was carried out by foreigners.

“This is not Iran, we came to you from Iraq, and we are Saddamists,” they shouted as they tortured him, according to the report.

The man was cited as saying that his friend Karim Fakhrawi, who was also detained, died during one such torture session.

RT sent a letter to Bahraini Information Affairs Authority last week asking for the comment on the report, but has so far not received an answer.

­RT’s Nadezhda Kevorkova contributed to this report

X Factor’s Rylan tipped to win CBB

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X Factor finalist Rylan Clark is hot favourite to win Celebrity Big Brother.

The 24-year-old has been one of the stars of this series and his chances of winning were boosted on Wednesday when his main rival, Heartbeat actress Tricia Penrose, was evicted from the house.

Bookmakers William Hill have Rylan at 1/7 to win the Channel 5 show with US reality stars Heidi and Spencer – “Speidi” – the 8/1 second favourite.

Former footballer Neil “Razor” Ruddock is 9/1 to win, with Steps singer Claire Richards and Neighbours actor Ryan Moloney at 20/1 and 33/1 respectively.

William Hill spokesman Joe Crilly said: “There are many who think that Rylan has this sewn up already but do not count your chickens just yet as CBB is renowned for shock results.”

Even the revelation that Rylan has been sneaking out of the house to take part in rehearsals for the forthcoming X-Factor tour has failed to dent his popularity.

Former EastEnders star Gillan Taylforth, who was evicted from the show last week, let the cat out of the bag during an appearance on Channel 5’s The Wright Stuff.

A spokeswoman for the show refused to say how many times Rylan had left the house or for how long but said he remained on the site and was escorted by a Big Brother producer.

Contestants in the show are meant to be isolated in the Big Brother house and denied access to the outside world.

Clegg queries pace of capital cuts

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Deputy Prime Minister Nick Clegg has appeared to admit the coalition cut capital spending too deeply when it took power.

Speaking before the release of figures which are expected to show a fresh contraction in the UK economy, he said ministers had “comforted” themselves at the time that the reduction was in line with plans drawn up by the previous Chancellor, Labour’s Alistair Darling.

Mr Clegg said ministers now realised money for infrastructure was needed to foster recovery and the Government must do more to fuel capital investment if Britain does plunge into a triple dip recession.

In an interview with The House magazine, he said: “If I’m going to be sort of self-critical, there was this reduction in capital spending when we came into the coalition Government.

“I think we comforted ourselves at the time that it was actually no more than what Alistair Darling spelt out anyway, so in a sense everybody was predicting a significant drop off in capital investment. But I think we’ve all realised that you actually need, in order to foster a recovery, to try and mobilise as much public and private capital into infrastructure as possible.

“Wherever we can we’ve got to mobilise more capital investment. The economic evidence is overwhelming. It helps create jobs now – people go on to construction sites. It raises the productive capacity of the economy in the longer run.

“Money in people’s pockets, people on low and middle incomes, and, and mobilise capital investment will always remain my two – I mean, there are plenty of other things: supply-side reforms, making us more competitive and so on, there’s fixing the banks, but those two are the ones I always single out.”

Experts believe gross domestic product (GDP) will have fallen by 0.1% in the final quarter of 2012, putting the country on course for an unprecedented triple-dip recession. Labour has repeatedly urged the Government to implement a “plan B” for economic recovery based on temporary tax cuts and to bring forward long-term infrastructure investment.

Rachel Reeves, shadow chief secretary to the Treasury, said: “This is the first admission that this Government has made serious mistakes on the economy. But the real question is what Nick Clegg’s Government is going to do about it. We have urged ministers to bring forward infrastructure investment and build thousands more homes, but they have refused to listen.

“Nick Clegg also claims he wants to put money into the pockets of people on middle and low incomes. So he should now admit that the VAT rise was a mistake and cancel the plan to cut tax credits for working families on modest incomes on the day millionaires get a tax cut.”

N. Korea threatens military action against ‘southern puppets’

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North Korea threatens South Korea

North Korea threatens South Korea

Pyongyang has warned of ‘physical countermeasures’ against South Korea if they participate in the UN sanctions against the North. Tensions are simmering on the peninsula after North Korea announced a third military test ‘targeting’ the US.

“If the South Korean puppet regime of traitors directly participates in the so-called UN sanctions, strong physical countermeasures will be taken,” the North’s Committee for Peaceful Reunification of the Fatherland said.

North Korea’s top military organization said that the tightening of sanctions was tantamount to a “declaration of war.”

“As long as the South Korean puppet traitors’ regime continues with its anti-DPRK [North Korea] hostile policy, we will never sit down with them,” it said.

The threat follows North Korea’s announcement that it will conduct a third nuclear test with a view to targeting to the US. Pyongyang defiantly stated that it was prepared to embark on a “fully-fledged confrontation’‘ against its “arch enemy” America on Thursday.

China and the US wasted no time in reacting to North Korea’s warmongering rhetoric, condemning the threats as “needlessly provocative.”

DETAILS TO FOLLOW.

North Korea threatens southern neighbor

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The UN Security Council passed a resolution against North Korea on January 22, 2013. (File photo)

North Korea has threatened to take ‘physical countermeasures’ against South Korea, following a UN resolution adopted against Pyongyang for its rocket launch in December 2012.

“If the South Korean puppet regime of traitors directly participates in the so-called UN sanctions, strong physical countermeasures would be taken,” the North Korean Committee for Peaceful Reunification of Fatherland said on Friday.

“Sanctions amount to a declaration of war against us,” the committee added.

“As long as the South Korean puppet traitors’ regime continues with its anti-DPRK (North Korea) hostile policy, we will never sit down with them.”

On Thursday, Pyongyang said it would launch more long-range rockets and carry out a high-level nuclear test aimed at its “arch-enemy the United States.”

The North Korean National Defense Commission said that the UN resolution “masterminded by the US has brought its hostile policy towards the Democratic People’s Republic of Korea (North Korea) to its most dangerous stage.”

Meanwhile, White House spokesman Jay Carney criticized Pyongyang’s remarks as “needlessly provocative.”

“Further provocations would only increase Pyongyang’s isolation, and its continued focus on its nuclear and missile program is doing nothing to help the North Korean people.”

US Defense Secretary Leon Panetta also said Washington was “fully prepared to deal with” a test from North Korea.

On January 22, the UN Security Council adopted a resolution to impose new sanctions on North Korea for launching a long-range rocket on December 12, 2012.

Pyongyang announced it had launched a long-range rocket from the Sohae Satellite Launching Station, located in Cholsan County of North Pyongan Province, and successfully placed a satellite into orbit.

The rocket launch, however, drew widespread criticism from the European Union and the UN.

On December 14, North Korean leader Kim Jong-un said the country would go ahead with its space program and would launch more rockets and send more satellites into orbit.

However, Washington and its allies said the North Korean rocket launch had been a cover for testing an intercontinental ballistic missile capable of carrying a nuclear warhead.

SAB/HSN

Revealed: The top 20 burglary black spots

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Britain’s burglary hot spots have been revealed, with the LS13 postcode in Leeds topping the list.

The postcode in second place was BD12 in Bradford, followed by North Finchley (N12) in London, Eccles in Manchester (M30) and Noak Hill in Romford, Essex (RM3).

Comparison website MoneySupermarket.com analysed 3.49 million applications for home insurance quotes made between December 2011 and the end of November 2012.

They looked at the number of users who said they had made a claim for burglary at their current address in the past two years.

The number of claims made per 1,000 inquiries was then calculated for each area, to allow postcodes to be compared.

Hannah Jones, from the website, said: “While there are clearly some areas of the country with a higher proportion of insurance claims for burglary than others, this doesn’t actually mean the area is ‘rife’ with crime.

“Thieves often specifically target areas with wealthy residents, or quieter areas where there’s not a lot of passing foot traffic, where the rewards are potentially greater and the risk of being caught in the act may be lower.

“Areas affected by higher rates of burglary insurance claims will see their premiums impacted – increasing by a fifth on average. Higher value properties could expect to pay even more than this.

“Insurers take a blanket approach to assessing postcode districts for home insurance premiums rather than looking at insurance applications on a case by case basis.

“So, although you may not have been a victim of burglary directly, you could be paying more for insurance if there are higher rates of burglary claims made within your postal area.”

The postcodes where people were least likely to have made a claim included SA9 in Swansea, SA62 in Pembrokeshire and LA14 in Cumbria.

C&L’s Late Night Music Club With Warren Zevon

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Title: Lawyers, Guns And Money

On this day in 1947, the late and great Warren Zevon was born. This one never loses its sparkle for me.

Genius: Best of Warren Zevon
Genius: Best of Warren Zevon

Artist: Warren Zevon

Price: $12.49

(As of 01/24/13 06:18 pm details)

Nobel laureate censures US, EU at Davos over equality-busting policies

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US economist and Nobel laureate Joseph Stiglitz.(AFP Photo / Josep Lago)

US economist and Nobel laureate Joseph Stiglitz.(AFP Photo / Josep Lago)

Noted American economist Joseph Stiglitz admonished US economic policies as fueling inequality at the World Economic Forum in Davos Thursday. Meanwhile the Nobel laureate said European leaders had no “sense of what they need to do and will do.”

­Stiglitz noted the fact that a full quarter of American wealth is owned by the richest one per cent of the country’s population.

The point was meant to illustrate growing inequality in the US, fabled to be an equal-opportunity society — but where the wealthy have seen their fortunes double since 1980 while wages have flatlined and housing and education prices have gone through the roof.

He pointed out that median US income has been roughly the same for two decades despite rising costs.

“America likes to think of itself as a land of equality and opportunity, the so-called American dream is very deep to our sense of identity,” Stiglitz, who served as the chief economist of the World Bank from 1997 to 2000, said in an interview with the BBC on the sidelines of the conference. “The stats show otherwise, the US has one of the worst opportunity rates of any of the advanced economies.”

Speaking of Europe, Stiglitz praised the socially-minded Scandinavian countries for their progress in bringing about the most economically equal societies in the world. But he scolded European leaders as a whole for repeating “the same kind of platitudes, ‘we need to get growth, austerity won’t be enough,’ but no country has policies that will achieve growth.”

“I haven’t heard a single thing here that has given me a sense that the European leaders have any sense of what they need to do and will do,” he said, as quoted by Bloomberg.

Visualizing Platinum & Palladium’s Place In The World

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The platinum group of metals (PGMs) have received some perhaps unwarranted attention in recent weeks as the ‘coin’ idiocy came and went; but, it is noteworthy, as Eric Sprott points out that with demand rising and supply under pressure, the outlook for investment in physical platinum and palladium is increasingly compelling. The following infographic (and various supply and demand dynamics) provides a succinct picture of what these metals are used for, where they are produced, and the supply/demand imbalances.

Source: Sprott Physical Bullion Trusts

SUPPLY

1. PGMs have a high supply risk.

In the British Geological Survey’s Risk List 2012, the platinum group of metals (PGMs), of which platinum and palladium are widely viewed as the most significant, received a high supply risk index based on the list’s seven criteria: scarcity in the Earth’s crust; production concentration-location of principal producers and contribution to global supply; reserve distribution-global distribution of reserves; recycling rate; substitutability; governance (top producing nation); and governance (top reserve-hosting nation).

2. Overall global supplies of platinum and palladium are expected to decrease substantially in 2012, resulting in supply deficits.

A substantial reduction in primary and secondary supply is expected to move the platinum and palladium market from surplus to deficit in 2012, according to the Johnson Matthey Platinum 2012 Interim Review. Gross demand for platinum is predicted to remain firm, however, severe disruptions to platinum mining are expected to result in a 10% drop in global mine production of platinum. The report also estimates an 11% decline in supplies from recycling. Together, these factors are expected to result in an overall 10% decline in worldwide platinum supplies and a deficit of 400,000 oz. Gross demand for palladium is predicted to increase 15%. However, both mine production and recycling are expected to contract by 4% each, and stock sales by more than two thirds, resulting in a deficit of 915,000 oz.

3. Production is highly concentrated in only two countries

Unlike many other metals that are found in numerous regions, the majority of platinum and palladium production is concentrated in South Africa and Russia, which combined to account for 88% of platinum production and 80% of palladium production in 2011.

4. Widespread labour disruption, mine closures and other issues are negatively impacting the supply of platinum and palladium from South Africa, which produced more than half of the supply of the metals in 2011.

Platinum supplies from South Africa, which accounted for 75% of global production in 2011, are projected to fall to an 11-year low in 2012, declining 19% from the peak in 2006. The country is also the second largest producer of palladium but supplies of this metal are projected to drop more than 6% in 2012. A myriad of issues in the country are lowering cash profit margins and resulting in less supply of the metals, including labour disputes, closure of marginal operations, declining ore grades, , and progressively lower depths required for mining operations in some locations. Additionally, the availability and cost of electrical power continues to be precarious and the uncertain political environment, including increased rhetoric and political pressure regarding possible nationalization and/or ”super” taxation, could reduce the ability and willingness of industry participants to make the necessary investments to sustain current supply.

5. Dwindling stockpiles of palladium in Russia are nearing depletion and may not be able to offset declines in mine production.

Russia is the largest source of palladium, through both mining and state sales of stockpiles. However, the supply of the metal from existing stockpiles is projected to drop 68% in 2012 and is expected to account for just 3% of global supply. Additionally, mining supply is projected to drop by approximately 4% in 2012 and active mines in the Norilsk region of Russia are showing declining grades of ore extracted, which suggest that production levels at these mines may have peaked..

6. Alternative sources of new supply for platinum and palladium are not readily available.

North America accounted for just over 5% and 13% of global mine production of platinum and palladium, respectively, in 2011. However, production of both metals in the region is projected to decline slightly in 2012. The only region expected to increase platinum and palladium production in 2012 is Zimbabwe, though it remains a relatively small producer of the metals. However, increasing political tensions and threats over security of tenure in the country has deterred new investment.

7. The majority of platinum and palladium producers are operating at a loss.

The cash costs and capital expenditures required to mine a 3E PGM oz (~60% platinum, ~30% palladium, and ~10% rhodium) have risen to a level such that most mine production is already cash flow negative.  Only five companies are slightly cash margin positive after accounting for capital expenditures. A 15-year trend of declining ore grades and anticipated labour settlements with increased wages are expected to further increase cost and stress balance sheets for these producers.

DEMAND

8. There are diverse sources of demand for platinum and palladium.

More than a quarter of the demand for platinum and palladium is from non-autocatalyst industrial uses. For platinum, sectors utilizing the metal include petroleum refining, electrical, glass manufacturing, medical, biomedical and dental, and other manufacturing such as turbines. For palladium, demand comes from the electronics (as resistors and capacitors in circuit boards), dental and chemical industries. The metals are also used in jewelry, particularly platinum which is sought after for its rarity, silvery-white lustre and resistance to wear and tarnish.

9. More stringent vehicle emission standards continue to drive demand growth for platinum/palladium in autocatalysts.

Due to their powerful catalytic properties, platinum and palladium are essential components in catalytic converters in automobiles as they form the surface catalyst upon which the critical chemical reaction converting engine exhaust emissions into neutral compounds occurs, resulting in the reduction of the toxic components from combustion. There is no widely used substitute for the metals in autocatalysts and emission standards are becoming increasingly stringent across Asia increasing platinum/palladium loadings per vehicle. Demand for palladium in autocatalysts is expected to grow by 7% to an all-time high of 6.5 million oz in 2012, resulting in a combined 5% increase in autocatalyst demand for the two metals to 9.6 million ounces. For 2013, automotive demand for palladium is anticipated to grow by 24% and for platinum by 13%.

10. China is an increasingly important demand driver for both platinum and palladium.

China recently surpassed the U.S. to become the largest auto maker globally and auto sales are projected to grow at 5% per annum over the next three years, according to IHS Global.   Palladium loadings per gasoline powered vehicle produced in China have approximately tripled over the past decade and in 2010, China adopted the Euro IV emission standard, which is expected to materially increase the PGM loadings in Chinese-produced vehicles. The country’s demand for platinum in jewelry, particularly among the younger generation, comprised close to 70% of the global share in 2011 and is growing. From 2006 to 2011, platinum purchases doubled on the Shanghai Exchange.

11. Strong long-term annualized returns and uncertainty about the global financial system has the potential to take more supply of platinum and palladium off the market.

The returns on both platinum and palladium outpaced the S&P 500 Total Return Index in the ten years leading up to November 21, 2012, according to Bloomberg. The Manager of the Trust believes investor demand, through ETFs and funds acquiring the physical bullion, may increase as investors seek to protect their portfolios from inflation, deflation, economic slowdown and currency devaluation.

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Gun Control and Climate Change Arguments Taking Same Tack As 2009 Health Care Fight

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If we want any part of President Obama’s initiatives described in his inaugural speech to become reality in the next four years, we’d better gear up and get ready to fight, because they’re dog-whistling the troops, particularly on the topics of climate change and gun control, just like they did in 2009 with health care reform.

In 2009, we were caught unawares. That can’t happen this time, at least not if we hold any hope of getting things done this time around. Conservatives are already launching the time-honored strategies of lies, inflammatory speech, and exaggeration to push back on any effort whatsoever to make progress on climate change and gun control.

Fox News led the parade Tuesday morning with the theme that climate change isn’t real, beginning with Fox and Friends Tuesday morning, and continuing on with Rush Limbaugh pompously pronouncing it a “hoax.”

Meanwhile, there’s a rising anti-chorus over mild gun control measures which are long overdue, in which the same overarching themes employed in 2009 over health care reform are beginning to emerge. Some examples:

  • In Ohio, state school board president Debe Terhar is defending her decision to share a Facebook photo of Hitler along with a message criticizing Obama’s gun control proposals.
  • NRA President Wayne LaPierre gave a fiery speech on Monday night (video above), where he claimed the only reason to maintain a national registry of gun owners is to “tax them or take them,” and further claiming that the REAL motive was to leave guns in the hands of the wealthy and criminals.
  • Anonymous has gotten in on the debate, using the Obama to Hitler comparison as well.
  • Juan Williams, writing for Fox News, claims that gun control is now “central to Obama’s legacy.” That’s a clear-cut call for conservatives to mobilize.
  • Sheriffs in right-wing states are vowing to resist any efforts to implement gun control measures passed by Congress or tightened enforcement required by executive order.
  • Now the far right wingers have declared 2/23/2013 a “Day of Resistance” over the proposed gun measures. Anyone remember the call for the “tea party” which supposedly arose from the grassroots? Yeah.

These should raise the hackles on everyone’s neck as we’re thrust back into the days of death panels and socialism, resplendent with Obama as Hitler images, cries of armed resistance, and more. Indeed, some conservatives have figured out a way to resurrect death panels in the context of gun control, by inventing the myth that Obamacare will require doctors to inquire about guns in the home.

There will be protests at town halls, there will be more astroturf organizations with names like Americans for Constitutional Solutions and the like, and there will be a steady drumbeat on the part of the right wing to systematically tear apart every effort to actually move America toward some semblance of civilization.

Not this time. We won the health care battle and lost the war in 2010. They don’t give a damn about climate change and guns as much as they do about firing up their dispirited base in order to win some elections in 2014. The sooner we recognize it and push back, not by dignifying their accusations, but bringing our own arguments forth into the public square, the better.

To that end, the answer to the nonsense about climate change should be strong economic arguments for making the changes that will slow our contribution to climate change while building the economy. President Obama made that argument in his speech, when he said, “We cannot cede to other nations the technology that will power new jobs and new industries. We must claim its promise. That’s how we will maintain our economic vitality and our national treasure, our forests and waterways, our crop lands and snow capped peaks.“

With regard to gun control, everyone seems very concerned with the rights of gun owners, and seems to think they trump everyone else’s rights. How can the right wing, who claims to stand for the rights of innocents to life, tolerate dead children in a classroom? For those so devoted to the constitution, how can a right to life and liberty be trumped by one person’s right to use a gun to take those?

Take the message back and make this an argument about the rights of every American to live in relative safety without the fear that their children and loved ones will be taken from them because there was no balance between the rights of gun owners and the rights of innocents.

Wayne LaPierre speaks for gun manufacturers, not gun owners. When he speaks of rights, he is speaking for the corporate persons who profit from the death and mayhem their products wreak on our society.

The bottom line here is that progressives have to take the offensive on these questions and get the public on our side before the wingers erode the support we’ve built up for both of these initiatives. In the wake of Hurricane Sandy, and Sandy Hook, more Americans are open to reasonable gun control measures and climate change initiatives than ever before. The right wing knows it, and they’re going to use it. It’s up to us to stop it before it starts.

Putin links Algeria attack, Mali unrest to Libyan upheaval

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President Vladimir Putin (RIA Novosti / Aleksey Nikolskyi)

President Vladimir Putin (RIA Novosti / Aleksey Nikolskyi)

The Algerian hostage tragedy came as a result of the regional unrest fueled by revolts in Libya and Syria, which led to uncontrollable weapons proliferation, Russian President Vladimir Putin said on Thursday.

Speaking at a Moscow ceremony where foreign ambassadors received their credentials, the president stressed that Russia continues to stand for diplomatic solutions to the world’s most pressing political problems.

Putin urged the world’s leaders “to have a look at the developments in the Middle East,” noting that the Syrian conflict has been raging nonstop now for nearly two years.

The president voiced Russia’s concerns regarding the situation in Africa, saying the current crisis in Mali and the hostage tragedy in Algeria are directly connected to the military solution of the 2011 Libyan uprising.

“Upheaval in Libya, accompanied by the uncontrolled proliferation of arms, contributed to the deterioration of the situation in Mali. Terrorist attacks in Algeria that took away the lives of innocent people — including those from foreign countries — became the consequences of such tragic developments,” Putin said.

In the light of these events, Russia is especially committed to upholding the rule of law and the central role of the United Nations, Putin underlined.

Russia “feels responsible for maintaining global security and is set to cooperate with its partners in order to address global concerns,” the president added.

Putin’s comments come as US Secretary of State Hillary Clinton also acknowledged the connections between the Libyan unrest and the rising violence in the region. She said there was “no doubt” that the Islamists who attacked a gas plant in Algeria got their weapons in Libya. She also blamed what many observers are now calling a security vacuum in North Africa on the Arab Spring.

“There is no doubt that the Algerian terrorists had weapons from Libya. There is no doubt that the Malian remnants of AQIM [Al Qaeda in the Islamic Maghreb] have weapons from Libya,” Clinton told the Senate Foreign Relations Committee during a hearing on the 2012 attack on the US consulate in Benghazi.

Speaking at an annual news conference Wednesday, Russian Foreign Minister Sergei Lavrov said the rebels fighting French and African troops in Mali were the same bunch the West armed in the revolt that led to the ouster of the Gaddafi regime.

Imran Khan promotes self as next leader

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Pakistani politician Imran Khan says that his party will sweep the upcoming national elections and he will be elected as the country’s next leader.

Speaking to reporters on the sidelines of the World Economic Forum in Davos, Switzerland on Thursday, Khan said that his party now has 10 million members — most of them young people and women — and with their help, he can bring about the change that the Pakistani people have been aspiring for so long, The Associated Press reported.

Khan founded Pakistan Tehreek-e-Insaf (Pakistan Movement for Justice or PTI) 15 years ago after retiring from professional cricket.

The ex-cricketer estimated that 40 million young Pakistanis will be voting for the first time in the upcoming elections, out of a registered electorate of 90 million, and they constitute, what he called, “the engine for change.”

Khan, however, noted that an “epic battle” lay ahead with the “political class” and parties that have a vested interest in preserving the current “crumbling system” and status quo to stop change.

A survey conducted by the Washington-based Pew Global Attitudes Project in June last year showed that Khan was the most popular politician in the country.

Khan’s stance on Washington’s war on terror, which he calls a war of terror, his opposition to the US drone attacks in Pakistan’s northwest tribal region, and his struggle for the rule of law, justice, equality, and the eradication of corruption have endeared him to the Pakistanis.

On Wednesday, Khursheed Shah, federal minister for religious affairs, said general elections in Pakistan will be held in early May.

MN/HN

What the Japanese Trade Deficit Says About the Fraying Fabric In China And Europe

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Wolf Richter  www.testosteronepit.com  www.amazon.com/author/wolfrichter

European talking heads have been reassuring us on an hourly basis, lest we forget, that the worst of the debt crisis is over. But the Japanese trade deficit, a measure of reality, not words, tells a different story about the crisis in Europe. And about troubles coming to a boil in China. But neither issue can be resolved by Prime Minister Shinzo Abe’s plan to decapitate the yen.

Trade deficits aren’t the end of the world for Japan. But they’re the end of an era. Since the mid-1980s, Japan has booked large annual trade surpluses, to the total and ineffectual aggravation of US presidents and lawmakers. The surpluses helped fund Japan’s budget deficits without having to rely on foreign investors. Now, these deficits have become a mountain of debt over twice the size of GDP, unequalled in the developed world.

But in 2011, that seemingly endless string of surpluses, on which the Japanese economy had become dependent, broke. Instead there was a deficit of ¥2.56 trillion, small by US standards. It was ascribed to the earthquake and tsunami, fuel imports, etc. A temporary blip. In 2012, the monthly trade deficits got worse, and over the last six months, they occurred in an uninterrupted sequence to reach ¥6.93 trillion ($78 billion), almost tripling from 2011. An all-time record.

Yet, even during the campaign late last year, Shinzo Abe, now prime minister, vowed to toss all fiscal restraints overboard and pile even more deficit spending on that mountain of debt that had been funded by the now evaporated trade surpluses. So the cabinet just approved another round of stimulus spending, $117 billion, the largest since the financial crisis. It will be up to the Bank of Japan to print enough yen and mop up the red ink.

It’s Abe’s effort to goose the economy, or at least remain prime minister for longer than 15 months, which was the limit for his hapless six predecessors, including himself, ever since Junichiro Koizumi vacated the post in 2006 (graph). And it’s causing a ruckus around the world. Politicians and lobbyists are accusing Japan of yen manipulation and of starting the next round in the currency wars, forgetting conveniently that it was the Fed that has been trying with all its might and for years to demolish the dollar, and is still doing so by printing $85 billion a month [The Currency Wars: Now US Automakers Are Squealing].

But Abe’s gyrations had no impact on the trade deficit in December. At ¥641.5 billion, it was once again worse “than expected.” Exports deteriorated 5.8% from December 2011, imports rose 1.9%. Of Japan’s three largest export markets–China, the US, and Europe–two had turned into a veritable trade catastrophe.

China had overtaken the US as Japan’s largest export market. And Japanese companies were brimming with optimism. Then the Senkaku Islands “dispute” erupted–in quotes because Japan insists that there is no “dispute,” the islands being Japanese. It didn’t take the Chinese government long to rile up its people against everything Japanese. And the images floating around the world were ugly.

At first, it appeared to be a spat that, like others, would be, after sufficient commotion, put back in the dirty-underwear drawer, unresolved, but out of sight. Instead, jets were scrambled by the Japanese to counter jets approaching the islands from China, and ships were involved, and perhaps shots might be fired. Rather than a spat, it has become an element of China’s growing territorial assertiveness.

Japan, which spends only about 1% of GDP on its military, can’t rattle its saber loud enough for China to notice. Instead, it has to rely on the resolve of its ally, the US, to keep the Chinese at bay. A resolve that China is testing. While a shooting war is somewhere between unlikely and unthinkable, given the economic ties between the three countries, tensions are rising, and tempers aren’t settling down, and Japanese exports to China are crashing.

In November they were down 14.5%; in December, 15.8% to ¥906 billion. Worst hit were cars, trucks, and parts (-47.5%), machinery (-22.2%), and electrical machinery, which includes tech products like semiconductors (-16.8%). Imports from China edged down by 2.1% to ¥1.24 trillion. And the trade deficit jumped by 76.8%.

This debacle is unrelated to the strength of the yen. It’s caused by the deteriorating relationship between two of the world’s largest trading partners. Knocking the yen off its lofty perch–it’s down 11% against the dollar and 15% against the euro since November–won’t have much impact. In that respect, Abe’s cure won’t work.

Then there’s Europe. In December, exports skidded by 12.3% to ¥561 billion, after having plunged 20% in November. To Germany, which now may be in a recession, they declined by 9.2%, to the UK by 10.2%, to France by 16.8%, to Spain by 26.2%, and to Italy by 28.2%.

These are crisis numbers, a function not of a strong yen but of the European economies that, despite ceaseless declarations to the contrary, have stepped up from a debt crisis to a full-blown economic crisis. And in this environment, Abe’s cure–demolishing the yen–will largely be ineffective.

And here is an awesome, amazing, and powerful appeal (video with lyrical English text) to the people of Japan to open their eyes. It slams the nuclear industry, the mainstream media, government bureaucrats, and politicians of all stripes…. humanERROR by “Frying Dutchman” (video).

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FilmSuck: Why America’s Great Filmmaking Tradition Went Down the Drain

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It boils down to snobbery.

January 24, 2013  |  

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The following is an excerpt from the new e-book FilmSuck USA by Eileen Jones (Amazon Digital Services, Inc 2013).

That loud sucking noise you hear is American cinema going down the drain. We’ve been listening to that slow slurping gurgle for a long time now, and are used to it. Still, sometimes you might wonder how American cinema, which was once the best in the world, wound up circling the drain with a mournful glugging sound for years and years and years. And you might also wonder how much longer it can go on like this, before the Final Suck occurs and we’re looking at nothing but empty drainpipe.

It’ll never happen, you might say. That’d be like saying America’s going to shut down its space program, and let other people take over, like the Russians and the Chinese and the Indians and any random jerk-off billionaire looking for an expensive hobby. Oh, wait…yeah. That already happened, didn’t it?

Anyway, I have a few ideas about how it all went to hell.

Film As Work

It’s useful to note that American film was initially forged as a working-class entertainment form, generally by workers, for workers, and that this was not, in itself, a bad legacy for our national cinema. In fact, it took shape in an optimal way, making increasingly astute use of the sensational power of moving images cut together. Ours was always recognized in other filmmaking nations as a hot contender for Best Cinema, even before the period of Hollywood’s world-dominance began.

But ironically, in the USA, the world’s most boastful democracy, our basic disdain for the rabble has infected our thinking about American film from the word Go.

Unlike many European national cinemas that from the first displayed their propensity toward cinema-as-art and were embraced as such by their citizenry, early American cinema was regarded as a crude lower-class entertainment form, cranked out for profit, loved by the masses, despised by the elite. Early theaters for projected films were vaudeville houses running movie shorts between live acts catering to the hoi polloi, who liked to see dog acts and plate spinners and dance teams and slapstick comedy skits all mixed up together.

Converted-storefront “nickelodeons” exploded as the most popular entertainment venue because they were the cheapest. Virtually everyone, even the poorest, could afford to pony up a nickel to see amazing ghostlike images of ourselves walk out of a factory door at the end of a workday, deboard a train, eat breakfast, play cards, run, jump, box, kiss, dance the hoochy-koochy, and eventually, act out exciting fictional plots.

The men who got into the early, unregulated movie business on the ground floor were tough working-class guys themselves, often immigrants, looking for any kind of a break. The reason so many major Hollywood studio heads wound up being Jewish is because in the early days of cinema, Jews were kept out of most “respectable” businesses and had to stick to hardscrabble trades in marginalized industries. Famous examples: Louis B. Mayer, head of MGM Studios, born Lazer Meir, Russian immigrant, Jewish, former junk salesman; Samuel Goldwyn, head of the Samuel Goldwyn Studio, born Samuel Goldfish, Polish immigrant, Jewish, former glove salesman; Harry Cohn, head of Columbia Pictures, second-generation immigrant of German-Jewish extraction, former streetcar conductor and sheet music promoter; and the Warner Brothers of Warner Brothers Studio, Jack, Harry, Sam, Albert, born Jacob, Hirsch, Schmuel, and Aaron Wonsal, second-generation immigrants of Polish-Jewish extraction, former shoe repairmen, bicycle shopkeepers, grocers, whatever they could get.

Up through the 1910s, the upper classes and the guardians of culture tended to disparage the movies. Aspiring actors, writers, and directors seeking careers on the “legitimate stage” avoided working in movies unless they needed fast cash, in which case they sometimes worked under pseudonyms, so as not to damage their reputations. Early film critics–usually theater critics forced to cover the movies as well–held their noses while they typed complaints about the execrable mess of the movies, and urged more coherent narratives in the mode of the theatrical “well-made play.” Cultural reformers fretted about the deleterious moral effects of the movies. Not just their content–which always tended toward the violent, rowdy, and sensational–but also their mode of presentation–close-quarters seating, lights turned off, disreputable locales.

The assumption tended to be that, under cover of darkness, every working class girl was liable to get pregnant at the movies, and every immigrant boy was liable to impregnate someone or steal something or knife somebody. In short, unless prompt steps were taken, the popularity of movies would drive the working classes, always so inclined toward degeneracy, straight into the arms of Satan.

According to this thinking, lower-class children, especially, required saving, because they seemed to love movies with an all-consuming love, and also because, with early intervention, they had the capacity to become “civilized” and move up in class someday. As Richard Butsch argues in The Making of American Audiences: From Stage to Television 1750 — 1990:

Squatter Occupies Bank Of America-Owned $2.5 Million Boca Raton Mansion, Hilarity Ensues

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The robosigning/fraudclosure fiasco came, saw, and eventually left following a comprehensive slap-on-the-wrist settlement with all mortgage originating banks. In the process, it gave an inadvertent hint to the banks how they can boost house property values: by keeping homes from exiting the foreclosure pipeline, and off the market due to a legal mandate forcing them to do just that, it created a shortage of homes available for sale and thus provided an explicit subsidy funded by the banks themselves. The resulting “foreclosure stuffing” remains with us to this day.

Yet while it did manage to artificially boost prices, the process succeeded in one thing: making a mockery out of property rights, as it became quite clear that nobody knows who owns what, hence demanding a global settlement release from the very top. But not even the 10th incarnation of Linda Green could possibly conceive of the following episode showing just how surreal U.S. housing reality can be, when one mixes combustible and outright idiotic property laws, with a real estate market that, when one pulls away the facade of “made for TV pundtiry”, is in absolute shambles.

From the Orlando Sentinel:

Squatting in style: 23-year-old occupies empty $2.5 million Boca home 

The 23-year-old has moved into an empty $2.5 million mansion in a posh Boca Raton neighborhood, using an obscure Florida real estate law to stake his claim on the foreclosed waterside property.

The police can’t move him. No one saw him breaking into the 5-bedroom house, so it’s a civil matter. And representatives for the real owner, Bank of America, said they are aware of the situation and are following a legal process.

But the situation is driving his wealthy neighbors crazy.

“This is a very upsetting thing,” said next door neighbor Lyn Houston. “Last week, I went to the Bank of America and asked to see the person in charge of mortgages. I told them, ‘I am prepared to buy this house.’ They haven’t even called me back.”

Barbosa, according to records, is a Brazilian national who refers to himself as “Loki Boy,” presumably after the Norse god of mischief. He did not return calls.

Someone with his name has been boasting about his new home on Facebook, even calling it Templo de Kamisamar.

Barbosa also posted a notice in the front window naming him as a “living beneficiary to the Divine Estate being superior of commerce and usury.”

A spokeswoman for Bank of America said her company has sent overnight a complaint and an eviction notice to a clerk in Palm Beach County.

“The bank is taking this situation seriously and we will work diligently to resolve this matter,” said Jumana Bauwens for Bank of America.

Sunrise real estate lawyer Gary Singer said Barbosa is invoking a state law called “adverse possession,” which allows someone to move into a property and claim the title – if they can stay there seven years.

A signed copy of that note is also posted in the home’s front window.

It’s the most valuable grab since the adverse possession law started being used in a handful of cases that have popped up in the Palm Beach County Property Appraiser’s Office over the past three years. Soon after Bank of America foreclosed on the property in July, Barbosa notified the Palm Beach County Property Appraiser’s Office that he was moving in.

Police were called the day after Christmas to the home at 580 Golden Harbour Drive, but did not remove him. He presented cops with the “adverse possession” paperwork, according to the police report.

Houston said that the home had been empty for about 18 months. Property records show it was sold to a family in 2005 for $3.1 million. The deed is currently valued at $2.5 million, according to county records. The county appraiser’s office lists the total market value of the 7,522-square-foot house at $2.1 million.

Real estate websites show canal views from sumptuous interiors including pillars, a curved staircase, marbled bath, second-floor balconies and a pool.

Singer says the adverse possession rule stems from the days when most people lived on farms. He said whoever tries to use the rule has to occupy the property in an “open and notorious manner.”

“They can’t be boarding up the windows and hiding in there,” he said.

After relatively few instances of the rule being invoked over the previous 10 years, 13 cases of adverse possession were filed in 2011, according to John Enck, a manager of ownership services at the appraiser’s office. It spiked even more in 2012: 19 cases, but so far, since Oct. 1, only six cases have been filed, he said.

Officials in Broward County did not respond to several requests for similar data.

Meet the squatter: Loki Boy humself:

Andre Barbosa can safely say that he has one of the nicest homes on the block in Boca Raton, Florida.

But the 23-year-old Brazilian national does not own or even rent the palatial $2.5million estate legally – he is a squatter.

Barbosa, originally from the neighboring Pompano Beach, moved into 580 Golden Harbour Drive in July

…

Speaking to ABCNews.com Thursday, a homeowner who asked not to be identified said that he entered the house around the same time and found four people inside, Barbosa among them.

One of the people said that the group is ‘establishing an embassy for their mission,’ and that families would be moving in and out of the property.

The neighbor said he believes that the 23-year-old is a ‘patsy’ who got caught up in something bigger.

According to his Facebook page, the 23-year-old, who refers to himself as ‘Loki Boy’ after the Norse god of mischief, attended South Technical Education Center in Boynton Beach and South Tech Academy in West Palm Beach.

In a brazen move, he also created a page for the Boca Raton mansion where he has been living and entertaining friends, which he calls Templo de Kamisamar.

Meanwhile, neighbors around Golden Harbour Drive who spoke to the station WPEC had a clear message for the unwanted resident: Leave now!

‘You’re walking into a house, it’s crazy. And the point of not being able to get him out is even crazier,’ one unidentified neighbor said.

And finally:

HOW TO TAKE OVER SOMEONE’S PROPERTY AND GET AWAY WITH IT

Adverse possession is a principle of real estate law that gives anyone who possesses the land of another for an extended period of time in an ‘actual, open, hostile and continuous’ manner the right to claim legal title to that land.

The exact elements of an adverse possession claim may be different in each state. In Florida, the law prescribes continuous possession of at least seven years. In New Jersey, a squatter must be in possession of the property for 30 years, while in New York it’s 10 years.

In some states, the trespasser must have paid taxes on the property during this time period. Other states don’t require payment of property taxes, but will apply a shorter time requirement for occupying the land if the trespasser has paid taxes.

* * *

Just like that lightbulbs went over the heads of millions of Americans, especially when one considers that for the vast majority of banks there is virtually no imperative to pursue squatters out of houses to which the banks themselves most likely don’t have the original “wet title” to.

That, and all the other allergies the US seems to developing with respect to “private” property slowly but surely.

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Feds after Anonymous’ Barrett Brown again, this time on evidence charge

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Barrett Brown.(Screenshot from YouTube user Barrett Brown)

Barrett Brown.(Screenshot from YouTube user Barrett Brown)

Former self-declared Anonymous spokesman Barrett Brown has found himself indicted on federal charges in the US for the third time in four months. This time officials charge the hacker with hiding evidence during a March 2012 raid on his apartment.

Brown was arrested in September after a separate raid on his Dallas flat. The following month federal prosecutors charged him for alleged threats directed at an FBI agent in a YouTube video. He was then charged in December with participation in a massive hack on global intelligence firm Stratfor that month that saw the release of hundreds of private company emails published in collaboration with WikiLeaks. The hack is said to have obtained some 5 million emails.

The new charges are technically for obstructing an investigation. The indictment states that during the March 6, 2012 raid on his residence, Brown “did knowingly and corruptly conceal and attempt to conceal records, documents, and digital data contained on two laptop computers.”

Prosecutors say he was trying to “impair the integrity and availability” of whatever was on the laptops, which federal investigators had hoped would be available for use as evidence before a grand jury and in federal court.

Brown says he got wind of the impending federal search of his apartment before it happened in March and decided to go to his mother’s. Federal agents proceeded to raid his flat, and eventually three FBI agents came to his mother’s house, asking him if he “had any laptops with me here at my mom’s place that I wanted to give them.”

“I responded in the negative,” he writes, “and they left.”

Brown could face twenty years behind bars if convicted.

In his account of the raid, Brown says investigators left him a document stating that they were searching for evidence related to “conspiracy to obstruct justice, and the obstruction of justice, i.e. tampering with a victim, witness, or informant” and “conspiracy to access without authorization protected computers, and fraud and related activity in connection with computers (aiding and abetting).“

The document said they were on the hunt for anything that might tie Brown to the hack on HBGary, another intelligence firm targeted by Anonymous in 2012. They were also looking for information on Anonymous and its subgroup LulzSec; records from various websites and chat systems and addition to information on Infragard, an information-sharing partnership between corporations and the FBI; and Endgame Systems, a security firm like Stratfor and HBGary.

Brown is due in court on January 30 in relation to the alleged threats against the FBI agent.

Guest Post: Energy Industry Doesn’t Understand Algeria Attack

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Submitted by Jen Alic of OilPrice.com,

The attack on BP-operated Amenas gas facilities in the Algerian Sahara was a spectacular lesson for the energy industry: No amount of high-tech security is invulnerable to Sahelian militants.

Billions will now be spent on securing Western energy interests across the region and investment will take a hit at a time when the big news was that the industry’s junior players – particularly American and Canadian – were growing ever so bold and willing to take risks in unstable regions. Their markets may not be able to sustain this bravery much longer.

An exodus – or relocation – of Western energy industry workers got underway immediately, not only in Algeria.

Not only will security costs rise; so will insurance premiums along with the cost of relocating personnel. Projects will be delayed, and production will take a small hit, but this will be only temporary.

While this incident will boost business in a big way for providers of physical and technical security, this will be money misplaced, and misspent. Amenas’ security was said to be stronger than an army barracks. What foreign oil and gas companies really need is the kind of strategic security analysis that is hard to come by, and that US agencies, for instance, don’t have themselves.

The biggest mistake the industry makes is to ignore regional and geopolitical dynamics. It’s complicated, and the corporate world doesn’t have the patience for it. But what has happened in the Sahel since the Western intervention in Libya is the stuff of geopolitical analysis, and while it would have been difficult to predict the attack on Amenas because it was less about events in Mali than it was about an internecine struggle for the leadership throne of Sahelian jihad, it was easy to predict an urgent security situation from Libya across the Sahel and all the way to Syria.

But while the security focus is most extensively right now on Algeria, the choice of the Algerian gas field as a target had nothing to do with Algeria or its energy industry.  Algeria is much more secure, and its security forces much more capable, than its Sahelian neighbors.

Key to assessing the real security risk to Western energy firms is understanding why the BP field was chosen as a target. The short answer is this: There are two key figures running Islamic jihad operations in the Sahel and they are vying for power after a leadership dispute. The group that launched the attack on Amenas chose Algeria because of geography (Amenas is in the desert and easily accessible from the Libyan border, 100 kilometers away) and because this is the rival jihadist leaders’ stomping ground. While the attack fit the overall Islamist agenda of sending France a message about its intervention in Mali, the intent was to send a bigger message to the group’s rival jihadist leadership.

It was an amazingly spectacular attack that netted some 700 hostages. None of the hostages were executed, and the 30 or so who died were killed in the Algerian Special Forces rescue operation. The attackers also made no attempt to destroy or sabotage the gas facilities. This was an extremely high-profile publicity stunt that serves as the calling card of a specific individual, Mokhtar Belmokhtar. The message was that under his leadership, the jihadists have massive capabilities. Belmokhtar’s leadership rival, Abdelmalek Droukdel, will have to respond to this challenge with an equally spectacular attack. It is not likely to be Algeria.

The energy industry’s biggest security concerns right now should be Niger, the home of France’s massive Areva uranium interests, and Libya, already destabilized. In both places, security is easily infiltrated. In Libya, security is provided by roving militias whose loyalty is at best questionable. Those loyalties could easily shift as militants move across the border from Mali into Libya. In Niger, the weak structure of government and the rampant corruption of security forces means that security is extremely vulnerable.

The markets – like the industry – do not respond to complicated geopolitics. They respond to specific incidents and there will be another one. That is to say, the markets will not take the Algerian incident as seriously as it should.

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Intent: A Free People “Should Have Sufficient Arms and Ammunition to Maintain a Status of Independence From Any Who Might Attempt to Abuse Them” (Video)

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Mac Slavo
January 24th, 2013
SHTFplan.com

Read by 10,450 people

“A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government.”
George Washington

We’ve all heard the argument from those who would disarm America that the Second Amendment is an archaic law that should be repealed, or at the very least re-written. They say that you should turn in your ‘militarized assault’ firearms because they are not necessary for sporting, hunting or personal defense. They tell us that the protections afforded by our right to bear arms are ambiguous and unnecessary in our modern-day society.

But those who support dismantling our rights under the U.S. Constitution rarely cite our Founders’ reasoning for this fundamental law of the land — whether due to ignorance or because it doesn’t play into their ideologies of an all-knowing, benevolent centralized government.

The following compendium of quotes from our Founders are so clear and succinct that even the most outspoken of gun grabbers would find it impossible to argue the original intent of this essential Constitutional Amendment.

Via Infowars:

“The Constitution preserves “the advantage of being armed which Americans possess over the people of almost every other nation…(where) the governments are afraid to trust the people with arms.” – James Madison, The Federalist, No. 46

“The best we can hope for concerning the people at large is that they be properly armed.” 
— Alexander Hamilton, The Federalist Papers

“Are we at last brought to such an humiliating and debasing degradation that we cannot be trusted with arms for our own defense?” — Patrick Henry

“The very atmosphere of firearms anywhere and everywhere restrains evil interference — they deserve a place of honor with all that’s good.”
– George Washington

Those who would supplant our right to bear arms — the one Amendment that makes it possible to ensure the authority of all the others — are no different than dictators like Stalin, Mao, and Hitler who are responsible for the deaths of hundreds of millions of people — all of whom had no means of defending themselves when the henchmen of tyranny kicked in their doors.

Author: Mac Slavo
Views: Read by 10,450 people
Date: January 24th, 2013
Website: www.SHTFplan.com

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.

Twin bombing kills four in Pakistan

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Policemen shift an injured colleague after a twin bombing rocked the Pakistani city of Karachi on January 24, 2013.

At least four people, including three police officers, have been killed and nine others injured in a twin bombing in the southern Pakistani port city of Karachi.

The incident took place at Karachi’s impoverished neighborhood of Sherpao Colony on Thursday.

“Four people have been killed in the twin blasts, three of them are policemen. There are nine others injured which include three policemen and six civilians,” said Doctor Seemi Jamali, the director of Jinnah Hospital.

“The remote control devices were planted on a garbage dump. The first explosion did not damage anything but when policemen and civilians reached the site, there was a second blast, which hurt them,” said Karachi Commissioner Syed Hashim Raza Zaidi.

A senior police official is reportedly among the dead.

No group has claimed responsibility for the bombing, but officials put the blame on pro-Taliban militants who have carried out similar assaults in the past.

Thousands of Pakistanis have lost their lives in bombings and other militant attacks since 2001 when Pakistan joined an alliance with the United States in the so-called war against terrorism.

Since late 2009, there has been a surge in militant attacks in Pakistan. Thousands have been displaced by the wave of violence and militancy sweeping the country.

MAM/MHB

Criticism grows of France war on Mali

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Criticism has grown of France’s rush to war in Mali without clear international approval, Press TV reports.

On January 11, France launched a war under the pretext of halting the advance of fighters in Mali.

Some political analysts believe that Mali’s abandoned natural resources, including gold and uranium reserves, could be one of the reasons behind the French war.

The United Nations High Commissioner for Refugees (UNHCR) has warned that the war in Mali could leave at least 700,000 people homeless.

On Thursday, France 24 Editor in Chief, Atmane Tazaghart told Press TV that “If France try to occupy Mali with a long ground operation, they will find themselves in the same situation that the Americans found themselves in Afghanistan and Iraq, they will be in a war of attrition against an enemy which can easily attack and then hide among the local population.”

This comes after UN Secretary-General Ban Ki-moon said on Wednesday the United Nations would not be engaged in France’s war on Mali.

“Directly assisting offensive military actions would also place our civilian personnel in the region in jeopardy. I take this issue very seriously,” Ban said.

On Monday, the political opposition in France also expressed regret over the country’s “isolation” and lack of “clear objectives” in the war on Mali, calling on the French government to clarify the goals of the war.

Chaos broke out in Mali after President Amadou Toumani Toure was toppled in a military coup on March 22, 2012. The coup leaders said they mounted the coup in response to the government’s inability to contain the Tuareg rebellion in the north of the country, which had been going on for two months.

MAM/HN

Erdogan sacks 4 ministers

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Turkish Prime Minister Recep Tayyip Erdogan has dismissed his interior minister Idris Naim Shahin due to his improper description of the death of 34 civilians in an airstrike launched against Kurdish separatists along Iraqi border in 2011.

Former governor of Istanbul Muammer Guler is reported to be successor-in-waiting to Shahin after Thursday’s move. The education, health, and tourism ministers were also replaced on Thursday.

Sahin came under fire after he described the 2011 deaths of civilians as an “experience” for Turkish security forces.

The reshuffle coincides with the start of a fresh round of peace talks between Turkey and the Kurdistan Workers’ Party (PKK) to end nearly three decades of conflict.

The Turkish government and the PKK recently agreed on a peace roadmap under which Turkey would grant wider rights to the 15-million-strong Kurds.

The Kurdish fighters demand that Turkey recognize Kurdish identity in its new Constitution. They also want the release of hundreds of activists imprisoned for links to the PKK.

The PKK has been fighting for an autonomous Kurdish region inside Turkey since the 1980s.

Clashes between Turkish forces and PKK fighters have intensified in recent months.

KA/HN

Good News Apple Bulls: Today’s $60 Billion Market Cap Loss Is Not The Biggest One Day Drop In History

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Apple lost a remarkable $59.63bn in market cap today sending even the most ardent of bullish sell-side analysts scrambling for cover. However, there is a silver-lining, this is not (as many expected) the greatest market cap loss ever in history in one day for any company – it is in fact 3rd!! The holder of the Number 1 and Number 2 spot is none other than AAPL’s awful analog – Microsoft (which is itself having a tough night). MSFT lost an enormous $77.18bn on 04/03/2000 and then 3 weeks later followed it up with another epic $61.81bn drop on 04/24/2000. As AAPL drops perilously close to losing the top spot of global market caps to XOM, we note that even that prestigious name had a ‘moment’ when it lost $52.5bn in a single-day on 10/15/2008. So, good news all around then.

Will Apple ever see those loft heights again?

Exxon Mobil is still struggling to regain the levels it was trading at before the big loss…

Microsoft never regained the levels it was trading at before these epic losses…

It was a mere 5 months ago (3 weeks before the top) that we warned of AAPL’s human-nature-based exuberance and its similarities to MSFT… the MSFT to AAPL analog continues to play out… more of a drop to come, a bounce then the real plunge to $300?

Charts: Bloomberg

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States Emerge As Huge Battleground In 2013

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red_blue_states.jpeg

The enormous amount of money that was poured into our elections by the billionaires in November wasn’t only about the national government. They’ve been far more successful at taking over state legislatures, which does not bode well for their residents.

Ken Quinnell has some disturbing observations about initiatives to privatize everything, kill the Affordable Care Act on a state-by-state basis, destroy public education, undermine prevailing wage laws, destroy unions, and more. Here’s just one example:

Public Education (37 states): Education is one of the largest budget items that states deal with and it is a goldmine for private interests looking to profit off of public funding. Proposals that make money for private interests are growing and include charter schools, vouchers, online education and other initiatives that hurt both students and teachers. Example: Tennessee Gov. Bill Haslam (R) created a task force to craft a plan toimplement school vouchers.

This is where the real destruction is happening. For 30 years, the right wing has been quietly building a state-by-state network of right wing organizations. Think tanks, right wing press shops, propaganda-spinners and, of course, ALEC are all linked together to destroy public services on a state-by-state basis.

The problem is that they’re able to distract everyone from statewide initiatives with the federal nonsense, to the point where no one really pays attention to what’s going on until it’s quite nearly too late.

Well, not quite no one. The AFL-CIO is paying attention, and they can use your help. You can find out how to get involved here.

Greeks protest govt. economic reforms

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1000s of Greeks protest govt. economic reforms

Greek police officers, firefighters, and coast guards protest outside parliament during an anti-austerity demonstration in Athens. (file photo)

Thousands of Greeks have demonstrated in Athens to protest against the government’s economic reforms, saying the reforms target the ordinary people while leaving the rich unaffected, Press TV reports.

On Thursday, the demonstrators took to the streets of the capital to voice their anger at tax hikes and cuts in public spending and wages, which they said added more pressure to an already struggling society.

Students, workers, pensioners, the unemployed and the disabled were among those who joined the anti-government rally.

Thursday’s demonstration was accompanied by a nationwide strike by metro workers. The metro staff, who barricaded themselves inside the network’s headquarters near Athens, are against the government’s pay cuts in the public sector and have refused to return to work.

On January 16, the International Monetary Fund (IMF) approved a $4.31-billion (3.24-billion euro) loan installment to Greece after completing reviews of the debt-plagued country’s economic performance.

The amount was part of a four-year $36.6-billion (28-billion euro) rescue loan IMF had granted to Greece on March 15, 2012 to support the country’s economic adjustment program.

The IMF said that the loan was granted on the condition that the country impose spending cuts and other austerity measures.

Greece has been in a recession since late 2008. The country has been cutting down its spending over the past four years, which has resulted in many Greeks losing their jobs.

One in every four Greek workers is currently unemployed, banks are in a shaky position, and pensions and salaries have been slashed by up to 40 percent.

The country has been surviving on bailout loans from its international creditors since May 2010.

MN/MHB

Kim Dotcom wants to encrypt half of the Internet to end government surveillance (FULL RT INTERVIEW)

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In an in-depth interview, Megaupload founder Kim Dotcom discusses the investigation against his now-defunct file-storage site, his possible extradition to the US, the future of Internet freedoms and his latest project Mega with RT’s Andrew Blake.

Megaupload founder Kim Dotcom (C) launches his new file sharing site "Mega", surrounded by dancers, in Auckland January 20, 2013. (Reuters/Nigel Marple)
Megaupload founder Kim Dotcom (C) launches his new file sharing site “Mega”, surrounded by dancers, in Auckland January 20, 2013. (Reuters/Nigel Marple)

The United States government says that Dotcom, a German millionaire formerly known as Kim Schmitz, masterminded a vast criminal conspiracy by operating the file-storage site Megaupload. Dotcom, on the other hand, begs to differ. One year after the high-profile raid of his home and the shut-down and seizure of one of the most popular sites on the Web, Dotcom hosted a launch party for his latest endeavor, simply called Mega. On the anniversary of the end of Megaupload, Dotcom discusses the year since his arrest and what the future holds in regards to both his court case and the Internet alike. Speaking with RT’s Andrew Blake from his Coatesville, New Zealand mansion, Dotcom weighs in on the US justice system, the death of Aaron Swartz, the growing surveillance state, his own cooperation with the feds and much more.

Megaupload founder Kim Dotcom (2nd R) poseswith actors dessed as police after the launch of his new website at a press conference held inside his home in Auckland on January 20, 2013. (AFP Photo/Michael Bradley)
Megaupload founder Kim Dotcom (2nd R) poseswith actors dessed as police after the launch of his new website at a press conference held inside his home in Auckland on January 20, 2013. (AFP Photo/Michael Bradley)

‘­Hollywood is a very important contributor to Obama’

RT: You’ve blamed President Obama and the Obama administration for colluding with movie companies in order to orchestrate this giant arrest here in New Zealand. Is this kind of give-and-take relationship between Washington and Hollywood all that you say it is? Or are you just the exception? Does this really exist?

Kim Dotcom: You have to look at the players behind this case, okay? The driving force, of course, is Chris Dodd, the chairman of the MPAA [Motion Picture Association of America]. And he was senator for a long time and he is – according to [US Vice President] Joe Biden – Joe Biden’s best friend. And the state attorney that is in charge of this case has been Joe Biden’s personal counsel, Neil MacBride, and [he] also worked as an anti-piracy manager for the BSA, the Business Software Association, which is basically like the MPAA but for software companies.

And also, the timing is very interesting, you know? Election time. The fundraisers in Hollywood set for February, March [and] April. There had to have some sort of Plan B, an alternative for SOPA [the Stop Online Piracy Act], because the president certainly was aware – and his team at the White House was aware – that if they don’t have anything to give at those fundraisers, to those guys in Hollywood who are eager to have more control over the Internet, they wouldn’t have probably raised too much. And Hollywood is a very important contributor to Obama’s campaign. Not just with money, but also with media support. They control a lot of media: celebrity endorsements and all that.

So I’m sure the election plays an important role. The relationships of the people that are in charge of this case play an important role and, of course, we have facts that we want to present at our extradition hearing that will show some more detail about this and that this is not just some conspiracy theory but that this actually happened.

Local Maori arrive as Megaupload founder Kim Dotcom (unseen) launches his new file sharing site "Mega" in Auckland January 20, 2013. (Reuters/Nigel Marple)
Local Maori arrive as Megaupload founder Kim Dotcom (unseen) launches his new file sharing site “Mega” in Auckland January 20, 2013. (Reuters/Nigel Marple)

‘Operation Takedown’

RT: The US Justice Department wants to extradite you, a German citizen living in New Zealand operating a business in Hong Kong. They want to extradite you to the US. Is that even possible?

KD: That is a very interesting question because the extradition law, the extradition treaty in New Zealand, doesn’t really allow extradition for copyright. So what they did, they threw some extra charges on top and one of them is racketeering, where they basically say we are a mafia organization and we set up our Internet business to basically be an organized crime network that was set up and structured the way it was just to do criminal copyright infringement. And anyone who has every used Megaupload and has any idea about how that website worked knows immediately that it was total nonsense. But they needed to chop that on in order to have even a chance for extradition. But in our opinion, you see, all of that was secondary. The primary goal was to take down Megaupload and destroy it completely. That was their mission and that’s why the whole thing in Hong Kong, for example, they called it Operation Takedown. And I think everything that’s happening now, they are trying on the fly to doctor it around, and found a way to find a case. They probably came here and thought, “We will find something; that these guys have done something wrong.” In the indictment, if you actually read that, it’s more like a press release. There’s nothing in there that has any merits.

Megaupload founder Kim Dotcom speaks during the launch of his new website at a press conference at his mansion in Auckland on January 20, 2013. (AFP Photo/Michael Bradley)
Megaupload founder Kim Dotcom speaks during the launch of his new website at a press conference at his mansion in Auckland on January 20, 2013. (AFP Photo/Michael Bradley)

RT: When the raid happened one year ago today, it got a lot of people talking both about the Internet and about this character, Kim Dotcom. But it was a lot of talking and not so much action, because here it is one year later and this case is still happening. Back up earlier this month, and we saw Aaron Swartz – an online information activist – pass away, and only in his mid-20s. And it got a lot of people talking, so much so that members of Congress have actually asked for changes to federal computer laws so that this doesn’t happen again. What is it actually going to take to get people to stop just talking and to actually start acting?

KD: Our case is going to be the one that will have much more attention down the road because it is a crucial case for Internet freedom. And I think more and more people realize that and the government is quite exposed here because they really went in with completely prosecutorial abuse and overreach and ignoring due process, ignoring our rights, spying on us, illegal search warrants, illegal restraining orders, illegal spying. The whole picture, when you look at it, shows that this was an urgent mission, done on a rush. “Take them down, I want them to go.” And it was a political decision to do that. And the execution was extremely poor, and the case is extremely poor, because that is something they thought that they could worry about later. It was all about the takedown. “Let’s send a strong message to Hollywood that we are on their side.”

RT:And now it’s been a year and nothing has progressed. At least for them. It seems like the case is falling apart day by day.

KD: Let me give you one example of how crazy this is. We have a judge here who said, “Please show us your evidence about your racketeering allegations. Show us that these guys were setting up some sort of organized crime network,” because that’s what the extradition will focus on primarily. They are using the organized crime treaty to get us extradited. So the US appealed that and said, “We don’t want to show you what we have.” And then they appealed to the high court and the high court then said, “We want to see it.” And they just keep appealing it, all the way to the court of appeals and to the Supreme Court. And what does that tell you? If you don’t even want to show us your cards – show us what you have! If you have such a strong case and are seriously interested about getting someone extradited, why waste all this time? Just show your hand. And they don’t have anything because we haven’t done anything wrong. We were law abiding. We were a good corporate citizen. And they knew that the time they came here to do this. They just wanted to take us down.

Megaupload founder Kim Dotcom (C) launches his new file sharing site "Mega", with dancers, in Auckland January 20, 2013. (Reuters/Nigel Marple)
Megaupload founder Kim Dotcom (C) launches his new file sharing site “Mega”, with dancers, in Auckland January 20, 2013. (Reuters/Nigel Marple)

‘I want to reestablish a balance between a person and the state’

RT :The new program, Mega, is fully encrypted, and you’re touting it as an encrypted program so that people will want to use it. Do you think this is even necessary, right now, that people need encryption on the Internet?

KD: I think it’s important for the Internet that there is more encryption. Because what I have learned since I got dragged into this case is a lot about privacy abuses, about the government spying on people. You know, the US government invests a lot of money in spy clouds: massive data centers with hundreds of thousands of hard drives storing data. And what they are storing is basically any communication that traverses through US networks. And what that means they are not spying on individuals based on a warrant anymore. They just spy on everybody, permanently, all the time. And what that means for you and for anybody is that if you are ever a target of any kind of investigation, or someone has a political agenda against you, or a prosecutor doesn’t like you, or the police wants to interpret something in a way to get you in trouble – they can use all that data, go through it with a comb and find things even though we think we have nothing to hide and have done nothing wrong. They will find something that they can nail you with and that’s why it’s wrong to have these kinds of privacy abuses, and I decided to create a solution that overtime will encrypt more and more of the internet. So we start with files, we will then move to emails, and then move to Voice-Over-IP communication. And our API [Application Programming Interface] is available to any third-party developer to also create their own tools. And my goal is, within the next five years, I want to encrypt half of the Internet. Just reestablish a balance between a person – an individual – and the state. Because right now, we are living very close to this vision of George Orwell and I think it’s not the right way. It’s the wrong path that the government is on, thinking that they can spy on everybody.

Actors in police costume mock-arrest Megaupload founder Kim Dotcom (C), as he launches his new file sharing site "Mega" in Auckland January 20, 2013. (Reuters/Nigel Marple)
Actors in police costume mock-arrest Megaupload founder Kim Dotcom (C), as he launches his new file sharing site “Mega” in Auckland January 20, 2013. (Reuters/Nigel Marple)

RT: Long before Megaupload was ever taken down, the Justice Department was looking into Ninja Video and you actually cooperated with them. People want to know: how is Kim Dotcom, this guy who is incredibly against Washington and hates everything that they’ve done to him, how is this same guy also helping out the Justice Department?

KD: Let me explain to you how this worked, okay? I was a good corporate citizen. My company was abiding to the laws. If we get a search warrant or we get a request by the government to assist in an investigation, we will comply and we have always complied. And that is the right thing to do, because if someone uploads child pornography or someone uploads terrorist stuff or anything that is a serious crime, of course we are there to help. This is our obligation. And I am not for copyright infringement. People need to understand that. I’m against copyright infringement. But I’m also against copyright extremism. And I’m against a business model: the one from Hollywood that encourages piracy. Megaupload is not responsible for the piracy problem, you see? It’s the Hollywood studios that release a movie in the US, and then six months later in other parts of the world. And everyone knows that the movie is out there and fans of a particular actress want to have it right now, but they are not giving them any opportunity to get access to that content even though they are willing to pay. And they are looking for alternatives on the Internet, and then they find them. They are trying to make me responsible for their lack of ability to adapt to a new reality, which is the Internet, where everything happens now. It doesn’t happen three months later. Imagine you go to Wikipedia. You want to find something, research an article, and they tell you to come back in three months, ‘We’ll give it to you then.’ If you find another site where you can get it right now, that’s where you go, right? So it’s really their business model that is responsible for this issue. And if they don’t adopt, they will be left behind on this side of the road of history like many others who haven’t adopted in the past.

Photo by Andrew Blake
Photo by Andrew Blake

‘I’m not Aaron Swartz. Aaron Swartz is my hero. He was selfless’

RT: What about your skeptics who point out this big playboy lifestyle and this giant, elaborate house and say ‘He’s not worried about Internet freedoms, he’s just worried about protecting his profits’?

KD: Let me be clear: I am a businessman, okay? I started Megaupload as a business to make money. I wanted to list the company. I am an entrepreneur, alright? I’m not Aaron Swartz. Aaron Swartz is my hero. He was selfless. He is completely the opposite of me, but I’m a businessman. I’m driven by the success of achieving something in the business world. That’s not a crime. There is nothing wrong with that. And if you create something that is popular and that people want to use, you automatically make money. And I’ve always been an innovator. I’ve always created products that people like. And that’s why I’m successful. I’m not successful because people have used Megaupload for copyright infringement. And what everyone needs to understand [is] there have been massive amounts of legitimate users on Megaupload. We don’t believe that 50 million users a day are all just transferring piracy. That’s wrong. A lot of people have used it to back up their data, to send a file quickly to a friend. Young artists have used it to get traction, to get downloads, to get known. There was a lot of legitimate use on Megaupload. It’s a dual-use technology, just like the Internet. You can go to any ISP right now, anyone who connects customers to the Internet. And if they are honest to you and you ask them the question ‘How much of your traffic is peer-to-peer piracy?’ anyone who will tell you less than 50 percent is lying to your face. This is a problem of the Internet and not Megaupload.

RT: If you weren’t doing Mega, or Megaupload, what would you be doing? Here’s this businessman who strives to accomplish success. What would you be doing?

KD: I would probably build spaceships and we would probably already be on Mars.

Photo by Andrew Blake
Photo by Andrew Blake

RT: What happens next, though? What are the chances of Mega being shut down. We already saw that radio stations were pulling ads.

KD: The content industry is still very emotional about us.We bought radio ads with one of the major networks here for eight radio stations. Very funny, very cool ads, promoting our service as a privacy service. And the labels called up the radio station, and one advertiser who is in the movie business called up the radio station, and demanded those adds to be taken down or else they will not buy ads from them anymore. And they were forced because they rely, of course, on that advertisement. My campaign was comparably small to the amount that they are sending. So they used their power to interfere in our right to have a media campaign, an ad campaign. And that just shows you that attitude. It’s against the law. They can’t do that. That’s interfering in our business and they have done that many times in the past. Calling payment processors, calling advertisers, telling them, ‘I don’t want you to work with these guys.’ That’s just wrong. If you have an issue with us, go hire a lawyer, sue us, take us to court and then see if you have anything that will give you a judgment against us. But instead, they use that power and their money to get new laws made for them, to lobby politicians, to get the White House to come here and destroy our lives. Destroy 220 jobs. Hardworking innocent people and they don’t give a damn about that. They had an agenda that is about more control over the Internet. And they made a strategic decision to say ‘Who are we going to take out to send a strong message?’ And I was the one.

Photo by Andrew Blake
Photo by Andrew Blake

“If they come to attack us, it’s just going to backfire”

RT: But what happens if Mega is shut down? You are only on day one right now. How long is it going to take before the government steps up again and what are you going to do if that happens? Are you prepared to just start all over again? It’s been one year and here you are, doing this over again, what happens when Uncle Sam puts his foot down and grinds you into the dirt again? Do you get back up?

KD: Here is the thing. This startup is probably the most scrutinized when it comes to legal advice. Every single aspect of it has been under the looking glass by our legal team. So we are confident that it’s fully compliant with the law, and if they come to attack us it’s just going to backfire. Exactly like the Megaupload case did. The shutdown of our site backfired already, massively. And it’s just going to get worse for them. If they think they can pursue this and get away with this, they are dead wrong. Because the society is not on their side. Everyone who uses the Internet knows what’s going on here. They don’t like what’s going on here. They saw it with SOPA and you will see it with our case. People will come together and fight this kind of aggression against innovation and Internet freedom.

Photo by Andrew Blake
Photo by Andrew Blake

“We are all the little puppets that they think they can kick around”

RT: After Megaupload was shut down by the FBI last year, hacktivist with the movement Anonymous retaliated, so to speak. In response, they went and took down the websites for the FBI, the Motion Picture Association of America, the Department of Justice, the Recording Industry Association of America. All of these organizations were shut down by Anonymous in response to what they did to you. These were people who you never met but were so moved by what happened that they had to stand up and do something. Did you ever thank them, and how did you take it? How did you respond to their reaction?

KD: It’s a kind of virtual protest, you know? I think it’s not a good idea to shut down websites. I’ve been a hacker myself. I understand why they are doing it and how they are doing it, but I think there are better ways to protest. Where you organize yourself in a group and do petitions and actually email congressmen, email your local politicians, let them know about what you don’t like. Organize your movement rather than attacking. I had a sense of understanding for them because everyone had stored so much data on Megaupload, and then all of a sudden a site like that disappears and billions of files are taken offline, the majority of them perfectly legitimate. You need to understand one thing: 50 percent of all files that were ever uploaded to Megaupload have not even been downloaded once. That clearly shows the non-infringing use. People just wanted to store their stuff on our site. And of course they were outraged when that disappeared and the government said, ‘We don’t give a care and we don’t give a damn about you people. We don’t care that you have your personal documents there because we have our agenda and we are going to take over the Internet.’ And you know the White House was supporting SOPA, and only when the masses came together – and Aaron Swartz: he stopped SOPA. With his efforts, he stopped SOPA. And he became a target. A political target, okay? And that’s why all these things happened to him. There is no reasonable cause behind going after a young genius like that in the fashion they did. It’s political. Because the White House wanted SOPA. They promised it to Hollywood and they failed and they couldn’t go ahead because the White House was afraid if they keep pushing hard and they keep pushing it forward, that the people who oppose it are not going to vote for Obama in the reelection campaign. So it’s all a game to them really and we are all the little puppets that they think they can kick around. So we need to organize. There needs to be a movement that identifies these things and fights that. Not with shutting down websites but with real protests. Going out on the streets, writing to politicians and especially, most importantly, don’t vote for the guys that are against Internet freedom. Anyone who voted for SOPA, you should have a close look at that guy. Do I want to give him my vote next time around? Because that’s the only language politicians understand is your vote. And if you can bring all these votes together, somehow pooled for Internet freedom, you will see all these efforts disappear. Because at the end of the day, they represent the public. Politicians represent the public. And when they have enough pressure they can’t move forward. And SOPA was the best example for that.

New rules for bailiffs industry

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Bailiffs will be regulated under new laws to “clean up” the industry and protect vulnerable debtors, the Government has announced.

New rules will stop late-night visits to collect debts and restrictions on what property can be seized are being introduced.

Bailiffs will also be banned from entering homes when only children are present and they will no longer be able to set their own fees. New safeguards will also prevent them from using force against people who owe money, according to the Ministry of Justice.

Under the changes, bailiffs will also be forced to undergo a mandatory training and certification scheme and those who breach the new rules will be barred from the industry.

Justice Minister Helen Grant said: “For too long bailiffs have gone unregulated, allowing a small minority to give the industry a bad name. Too many people in debt have had the additional stress of dealing with aggressive bailiffs who often charge extortionate fees.

“These new laws will clean up the industry and ensure bailiffs play by the rules or face being prevented from practising. They will also make sure businesses and public bodies can collect their debts fairly.”

GOP Budget Violates Boehner’s New Rules on Debt

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When John Boehner picked up the Speaker’s gavel in January 2011, he also laid down some new rules regarding the U.S. national debt. Despite the near-doubling of the red ink and the seven debt limit increases under President Bush (all of which Boehner supported), the first Boehner Rule demands “cuts and reforms greater than the debt limit increase.” And now that House Republicans have voted to suspend the debt ceiling until mid-May, Speaker Boehner has issued a new decree that “it’s time for us to come to a plan that will in fact balance the budget over the next 10 years.”

Unfortunately for the Speaker and his GOP allies, Congressional Republicans have already violated Boehner’s new rules on both counts. As it turns out, last spring 228 GOP Representatives and 41 Republican Senators voted for the 2012 Paul Ryan budget that adds trillions more in new debt over the next decade.

As the Center on Budget and Policy Priorities explained last March, the “Ryan plan [is] unlikely to balance the budget for decades.” And for his part, Speaker Boehner admitted as much. As he explained to a Tea Party gathering in April 2011:

“We’re going to have to raise it again in the future,” he added. With the mass retirement of America’s Baby Boomers, he explained, it would take 20 years to balance the U.S. budget and 30 years after that to erase the nation’s huge fiscal deficit.

And in May 2012, Boehner acknowledged that the Paul Ryan budget almost all Republicans backed would violate “my simple principle of cuts and reforms greater than the debt limit increase”:

“Yeah, the big bad House Republican budget that would just gut everything under the sun, according to my friends across the aisle, would still require a $5 trillion increase in the debt ceiling over the next 10 years. Why? Because of the great big demographic bubble — baby boomers like me, that are going to retire and continue to retire for the next 20-25 years. It’s a big challenge.”

The Ryan budget poses a big challenge, all right, but not for the reason Boehner claimed.

Despite cutting over $4 trillion in programs for the poor and elderly, converting Medicare into a voucher program, slashing Medicaid by over a third (and leaving 48 million more people without health insurance), and essentially ending all government spending outside of defense, health care and Social Security, Paul Ryan’s budget would trillions in red ink over the next decade. The real culprit is Ryan’s massive tax cut windfall for the wealthy.

As Ezra Klein explained:

The Tax Policy Center looked into the revenue loss associated with House Budget Chairman Paul Ryan’s plan to cut the tax code down to two rates of 10 percent and 25 percent. They estimate the changes would raise $31.1 trillion over 10 years, or 15.4 percent of GDP. That’s $10 trillion less than the tax code would raise if the Bush tax cuts were allowed to expire, and $4.6 trillion less than it would raise if all of the Bush tax cuts were extended.

The Republican congressman says he’ll “broaden the tax base to maintain revenue…consistent with historical norms of 18 to 19 percent.” So let’s say Ryan needs to find close-enough deductions and loopholes to hit 18.5 percent of GDP. That means he’d need to close about $6.2 trillion in tax deductions and loopholes over 10 years.

But at no point either before or after he became Mitt Romney’s running mate did Paul Ryan have the courage to name a single deduction or loophole he’d close, tax expenditures that all told cost the United States Treasury over $1 trillion each year. Paul Krugman called it “Pink Slime Economics.” Matthew Yglesias concurred, pointing out in March that Ryan was too cowardly to specify which of the $1 trillion in annual tax expenditures he’d end:

Thirteen pages dedicated to explaining his vision for revenue-neutral tax reform. And even so he manages to not name a single tax deduction that he’s planning to eliminate. Home mortgage interest deduction? I dunno. Electric vehicle tax credit? I dunno. Deductibility of state and local income taxes? I dunno.

For his part, Paul Ryan repeatedly admitted as much. The House Ways and Means Committee, he said, would “show how they would go about doing this.”

But because neither Paul Ryan nor Mitt Romney (who adopted the same dodge for his tax cut windfall for the wealthy) ever said how they would do “this,” over the next 10 years the Ryan House budget would add substantially more to the national debt than President Obama’s proposed 2013 plan.

As the Center for American Progress explained in March, the Congressional Budget Office (CBO) assessment of the Ryan budget “did not test Rep. Ryan’s claims about how his policies would actually affect spending or revenue,” but “merely showed what would happen to the debt if his claims were true.” In a nutshell, they are not:

But the House budget’s entire claim to deficit reduction is built on the foundation of those fantasy revenue levels. Without them, the debt goes up, not down. In fact, with all the House budget’s tax cuts properly accounted for, revenue would average just 15.3 percent of GDP from 2013 through 2022, not 18.3 percent. The result: deficits would never drop below 4.4 percent of GDP, and would rise to more than 5 percent of GDP by 2022. The national debt, measured as a share of GDP, would never decline, surpassing 80 percent by 2014, and 90 percent by 2022. By comparison, President Barack Obama’s budget proposal, released in February, would stabilize the debt by 2015, and bring it down to 76 percent by 2022.

As House Republicans gathered at their secret retreat last week, not all were happy with Speaker Boehner’s gambit to suspend the debt ceiling for three months. Rep. Thomas Massie (R-KY) fretted, “”If you vote for a clean, three-month debt extension, and you say you vote on principle, then what set of principles keeps you from voting on a six-month debt extension clean,” adding:

“Three months from now, when they ask for another debt extension, how can you say, ‘I will never, ever do that’ when you just did it three months ago?”

Or, Massie could have rightly added, as 98 percent of Republicans in Congress voted to require less than a year ago.

Poll: Voters Unmoved By Cameron EU Message

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David Cameron has a mountain to climb if he is to persuade voters to stay in the EU, according to the first opinion poll since his landmark speech on Europe.

A poll in The Times shows the UK would vote by 53% to 47% to leave the European Union if a referendum was held now and not in 2017, as the Prime Minister is proposing.

But in a blow to the Prime Minister and senior Tories, the Populus poll suggests UKIP voters are unimpressed by Mr Cameron’s referendum and negotiate ploy.

Only 8% of UKIP supporters said the PM’s referendum pledge made them more likely to vote Tory.

More than twice that number of UKIP voters, 17%, said they were now less likely to vote Conservative and 75% said they were unmoved.

The poll will be a major disappointment to Mr Cameron and his inner circle, who would have been hoping for a substantial referendum bounce in the first poll since his speech on Wednesday.

The survey also reveals that many voters have already made up their minds about the EU, regardless of the new deal Mr Cameron seeks to negotiate for Britain.

Half of those who want Britain to remain in the UK and two-fifths of those who want to quit say their vote in 2017 will have little or nothing to do with the details of UK opt-outs or repatriated powers.

Boris Johnson, the London Mayor, put a question mark over whether he would support continued EU membership in a future referendum, telling an interviewer at the World Economic Forum in Davos: “I can’t say now.”

The poll also shows that the Prime Minister’s speech did little to improve his chances of winning an outright Tory victory at the next General Election.

A quarter of Liberal Democrat voters (23%) and Labour voters (26%) said Mr Cameron’s “renegotiate and referendum” strategy made it less likely they would vote Tory in 2015.

Hate Crimes: A Rape Every Minute, a Thousand Corpses Every Year

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There’ a pattern of violence against women that’s broad and deep and incessantly overlooked.

January 24, 2013  |  

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Here in the United States, where there is a reported rape every 6.2 minutes, and one in five women will be raped in her lifetime, the rape and gruesome murder of a young woman on a bus in New Delhi on December 16th was treated as an exceptional incident. The story of the alleged rape of an unconscious teenager by members of the Steubenville High School football team was still unfolding, and gang rapes aren’t that unusual here either. Take your pick: some of the 20 men who gang-raped an 11-year-old in Cleveland, Texas, were sentenced in November, while the instigator of the gang rape of a 16-year-old in Richmond, California, was sentenced in October, and four men who gang-raped a 15-year-old near New Orleans were sentenced in April, though the six men who gang-raped a 14-year-old in Chicago last fall are still at large. Not that I actually went out looking for incidents: they’re everywhere in the news, though no one adds them up and indicates that there might actually be a pattern.

There is, however, a pattern of violence against women that’s broad and deep and horrific and incessantly overlooked. Occasionally, a case involving a celebrity or lurid details in a particular case get a lot of attention in the media, but such cases are treated as anomalies, while the abundance of incidental news items about violence against women in this country, in other countries, on every continent including Antarctica, constitute a kind of background wallpaper for the news.

If you’d rather talk about bus rapes than gang rapes, there’s the rape of a developmentally disabled woman on a Los Angeles bus in November and the kidnapping of an autistic 16-year-old on the regional transit train system in Oakland, California — she was raped repeatedly by her abductor over two days this winter — and there was a gang rape of multiple women on a bus in Mexico City recently, too.  While I was writing this, I read that another female bus-rider was kidnapped in India and gang-raped all night by the bus driver and five of his friends who must have thought what happened in New Delhi was awesome.

We have an abundance of rape and violence against women in this country and on this Earth, though it’s almost never treated as a civil rights or human rights issue, or a crisis, or even a pattern. Violence doesn’t have a race, a class, a religion, or a nationality, but it does have a gender.

Here I want to say one thing: though virtually all the perpetrators of such crimes are men, that doesn’t mean all men are violent. Most are not. In addition, men obviously also suffer violence, largely at the hands of other men, and every violent death, every assault is terrible. But the subject here is the pandemic of violence by men against women, both intimate violence and stranger violence.  

What We Don’t Talk About When We Don’t Talk About Gender

There’s so much of it. We could talk about the assault and rape of a 73-year-old in Manhattan’s Central Park last September, or the recent rape of a four-year-old and an 83-year-old in Louisiana, or the New York City policeman who was arrested in October for what appeared to be serious plans to kidnap, rape, cook, and eat a woman, any woman, because the hate wasn’t personal (though maybe it was for the San Diego man who actually killed and cooked his wife in November and the man from New Orleans who killed, dismembered, and cooked his girlfriend in 2005).

San Francisco streetlights will spy on passersby

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The Columbus Tower is shown at right as the Transamerica Building looms in the background in San Francisco.(Reuters / Robert Galbraith)

The Columbus Tower is shown at right as the Transamerica Building looms in the background in San Francisco.(Reuters / Robert Galbraith)

San Francisco, California is the second-most densely populated urban area in the US, but those nearly one million residents of the City by the Bay are about to lose what little amount of privacy they have.

The San Francisco Public Utilities Commission has started work on a program that will update a number of the city’s 18,000 streetlights during the next few years. Those new installations might do a whole lot more than just illuminate sidewalks and keep streets lit for cars, though. Through part of a pilot program, city officials can send data wirelessly between more than a dozen of those streetlights.

What kind of data can a lamppost collect, though? In San Francisco, the answer is a lot. According to a report in the SF Bay Guardian, Paradox Engineering of Switzerland has already started testing streetlamps in the city that have the ability to wirelessly transmit data from traffic signals and surveillance cameras from one device to another. Soon, though, there will be more than just 14 cameras with that kind of capability. Additionally, the city is currently searching five vendors to test even more advanced lampposts across the city.

During last year’s Living Labs Global Award in Rio de Janeiro, Brazil, the LLGA gave Paradox the go-ahead to start testing lights in San Francisco. In a just-issued Request for Proposals, the city calls on others to pitch similar products. In the request, the City writes that as they begin replacing the 18,000 streetlights, the SFPUC “also plans to install an integrated wireless communication monitoring and control system” in order to manage the devices.”

“Ideally, the wireless system will accommodate other wireless devices, unrelated to street lighting, in a common wireless system mesh network,” the request reads.

When the City goes more into detail, the kind of devices that will need to connect to the lamps are brought to light. “Future needs for the secure wireless transmission of data throughout the City,” reads the report, may include gunshot monitoring, electric meter reading, street surveillance, public information broadcasts and other types of monitoring.

“San Francisco thought they were upgrading their 18,000 lamps with LEDs and a wireless control system, when they realized that they were in fact laying the groundwork for the future intelligent public space,” LLGA cofounder Sascha Haselmeyer tells Open Source Cities.

San Francisco isn’t the first city to bring this new form of surveillance to light – literally – but it might be the biggest. In 2011, Farmington Hills, Michigan became the first city in the US to rely on something called the Intellistreets project to watch over pedestrians. For $3,000 a piece, those high-tech luminaries don’t just provide light, but also record audio and video, all data that can be sent from device to device.

“This is not a system with spook technology,” Intellistreets founder Ron Harwood told WXYZ News when his small Michigan town first started trying out the devices. With 18,000 traffic lights in a city of 800,000 possibly embracing that same technology, though, it says a lot about the growing trend of secretive surveillance in the US.

“We’ve become somewhat accustomed to being visually monitored by the surveillance cameras that dot our urban landscapes, but audio monitoring and widespread, covert monitoring are not so common,” the PrivacySOS.org blog reports.

San Francisco first began installing public surveillance cameras in 2005, and four years later a report from the University of California Berkeley found that the devices failed to detersviolent crimes, including homicide, as well as rapes and drug dealing.

“Precious public safety dollars need to be spent on solutions that actually work to reduce violent crime, like community policing, intervention programs and improved lighting, not on more ineffective and intrusive cameras,” Nicole Ozer of the American Civil Liberties Union’s Northern California office said in 2009. Four years later, however, it seems as if the city is deadest on installing even more devices.

“In a few years, there may be no place to hide from San Francisco police surveillance — unless you drive to get around,” PrivacySOS adds. “The increasingly aggressive San Francisco surveillance regime appears to disproportionately affect low income people. In the privacy of your own car, you are probably free from city monitoring. But if you walk to work or take the bus, you better mind what you say.”

‘Damascus blast causes fatalities’

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Two militants are strolling in the streets of Damascus. (file photo)

A powerful blast has rocked a suburb of Damascus, leaving an undisclosed number of people dead, Syria’s state-run TV reports.

The blast occurred Thursday night in the Sasa Kanaker suburb of the Syrian capital, the report said.

Xinhua quoted an unnamed news website as saying that a large number of people were killed in the blast, which targeted a security office.

No group claimed responsibility for the deadly blast.

Syrian forces have killed a number of militants in fresh clashes as the Army continues operations across the crisis-hit country to drive out foreign-backed armed groups.

Earlier on Thursday, Syrian government soldiers clashed with militants in the northwestern city of Aleppo as anti-government forces set fire to a gas station in Aleppo’s suburbs.

Elsewhere, clashes broke out on the outskirts of the capital, and the western city of Hama.

The Army also defused several explosive devices planted on a road near the western city of Homs.

Syria has been experiencing unrest since March 2011. Many people, including large numbers of Army and security personnel, have been killed in the violence.

The Syrian government has said that the chaos is being orchestrated from outside the country, and that a very large number of the militants operating in the country are foreign nationals.

KA/HN

Crocodiles Escape From Farm In South Africa

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South Africa’s army and police have been called in to rescue thousands of crocodiles that escaped from a farm in flood waters.

Around 15,000 sprung from the Rakwena Crocodile Farm in the far north of the country when its owners were forced to open the gates to prevent a storm surge, local daily Beeld reported.

At least half still remain on the loose.         

Some turned up on a school rugby pitch 120km away.

The surrounding province of Limpopo has been hit by serious floods which have killed 10 people and left many homeless.

“Before there were only a few crocodiles in the Limpopo River. Now there are plenty,” said Zane Langman, the son-in-law of Rakwena’s owner.

“We go catch them when farmers phone us and say crocs are around.”

Mr Langman earlier used a motor boat to rescue some local residents who had climbed onto the roof of a garage to escape the rising floods.

“When we arrived there, the crocodiles were circling them,” he said.

Police spokesman Hangwani Mulaudzi said: “Police, the army, and people from the community are assisting.”

No incidents involving crocodile attacks have been reported.

Libya rebels deny arming Algeria captors

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File photo shows rebel fighters posing near the Libyan city of Zintan.

Libya’s former Zintan rebels have denied claims by an Algerian daily that they sold arms to hostage takers at a natural gas installation in eastern Algeria.

“We deny the information published by the Algerian newspaper Echorouk accusing Zintan revolutionaries of having sold weapons used by terrorists,” the military council of the Libyan city of Zintan said in a statement issued on Thursday.

Echorouk reported on Wednesday that “the first interrogations of the three terrorists captured by security services have revealed that rebels in Zintan were behind the sale of the arms used against the gas plant.”

On January 16, a militant group known as the Signed-in-Blood Battalion launched an assault on the In Amenas facility, killing an Algerian and a Briton and taking several gas workers hostage at the complex.

The Signed-in-Blood Battalion said the hostage-taking incident was carried out in reprisal for the French-led war in Mali.

In a statement, the former rebels also condemned “the terrorist attack that targeted the interests and security of the Algerian people.”

Zintan rebels were among the first groups to enter the Libyan capital Tripoli in August 2011, seizing a large military arsenal abandoned by the troops of former dictator Muammar Gaddafi.

Algerian Prime Minister Abdelmalek Sellal said on Monday that 37 foreigners of eight nationalities were killed in the hostage crisis, which ended on January 19.

TE/MHB

FA Review Hazard’s Swansea Ballboy Kick

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A Chelsea player has been sent off after appearing to kick a ball boy during the team’s match against Swansea City.

Midfielder Eden Hazard apparently became annoyed when the boy failed to return the ball promptly after it went out of play with 10 minutes left of the Capital One Cup semi-final.

The Blues forward tried to kick it from under him but instead he appeared to make contact with the youngster, leaving him writhing in pain and clutching his ribs.

After a delay of several minutes, when several Chelsea players went to tend to the boy, the Belgian was shown a red card by referee Chris Foy.

His team-mates reacted angrily, believing he had tried to get the ball loose to re-start play as Chelsea failed to make any inroads on Swansea’s 2-0 advantage from the first leg.

Swansea captain Ashley Williams was quick to condemn Hazard’s behaviour.

“(Chelsea striker) Demba Ba told me that the boy held onto it,” he told Sky Sports after the final whistle.

“I saw him (Hazard) kick him in the ribs, and you can’t do that.”

South Wales Police have confirmed they are investigating after a complaint about the clash.

Chief Superintendent Josh Jones said: “South Wales Police is aware of the incident involving a ball boy at the Liberty Stadium in Swansea tonight. We are making arrangements for him to be interviewed. South Wales Police takes such matters very seriously.”

Swansea manager Michael Laudrup said he expected Hazard would regret the incident when he views it on television.

“I saw it from a very big distance from the bench,” he said.

“I’ve since seen it after the game. Hazard is a great player. When he sees the images I think he will regret it.”

Laudrup denied the club had given the ball boys instructions to hold onto the ball when it went out of play.

Hazard’s actions were also widely criticised by football fans but the person behind Chelsea’s official Twitter account appeared to disagree with the sending off.

“Has football gone mad? Hazard is sent off for kicking the ball under a ball boy attempting to smother the ball rather than return it. #CFC”, was tweeted minutes after the decision.

The team’s manager Rafa Benitez said Hazard and the ball boy had exchanged apologies in the dressing room after the match.

“They both talked. The boy knows he was wasting time. Hazard was frustrated and trying to get the ball back.

“We can not change the situation. We are disappointed because we lost a player.

“The best thing for us is to move forward.”

The match ended 0-0, sending Swansea into their first major final, where they will meet Bradford City at Wembley.

Riots spread across Jordan

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Protesters shout anti-regime slogans during a demonstration in Jordan’s capital Amman. (File photo)

Riots have spread across Jordan after the announcement of parliamentary election results which people in four provinces dispute.

Violent clashes erupted on Thursday between police and protestors who accuse Jordan’s Independent Electoral Commission of vote-rigging, DPA reported.

Police fired tear gas to disperse the protestors who set fire to government buildings. At least three people were arrested.

The clashes were reported in the southern city of Maan where four schools were stormed, and government buildings and banks were set ablaze.

Karak and Madaba, two cities also located in southern Jordan, also saw unrest as people accused the electoral commission of “fraud.”

In the northern provinces of Irbid and Balqa, angry protestors burned tires to block roads while calling for the overthrow of Jordan’s kingdom.

Jordan’s main opposition, the Muslim Brotherhood, has been challenging the outcome of the elections, saying the vote will not end public anger.

The Muslim Brotherhood, which had boycotted the general elections along with other pro-reform groups, said on Thursday that measures taken by King Abdulla II fell far short of true democratic change and that the monarch should not have any say at all in naming a prime minister.

Preliminary figures show that more than 56 percent of registered voters cast their ballots.

Jordanians have been holding demonstrations since January 2011, demanding political reforms, including the election of the prime minister by popular vote and an end to corruption.

In October 2012, the Jordanian king dissolved the parliament and called for early elections under growing public pressure. He has also sacked three prime ministers since the start of the popular protests in the country in a bid to appease protesters.

KA/HN

Cameron takes aim at corporate tax avoiders

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(Reuters) – Prime Minister David Cameron on Thursday attacked multinational corporations that avoid paying their fair share of tax, promising action against such aggressive strategies after a public backlash in Britain.

The issue of tax avoidance by big business has turned toxic in recent years as millions of Britons struggle with low pay rises and austerity measures introduced to reduce the budget deficit.

Firms that are viewed as paying too little tax, such as coffee chain Starbucks, have been targeted by demonstrators and boycotts.

“I am a low-tax Conservative but I’m not a companies-should-pay-no-tax Conservative,” Cameron told business leaders at the World Economic Forum in Davos.

“Individuals and businesses must pay their fair share,” he said, adding that he would use his presidency of the Group of Eight industrialised nations to press the point.

Cameron did not mention any companies by name. At the height of the uproar last year, British MPs singled out Google, Amazon and Starbucks as companies that pay very little tax in Britain on profit from sales there.

The firms say they comply with British tax law, but under a tide of public outrage and demonstrations at its stores, Starbucks last year said it would pay around 20 million pounds ($32 million) in corporation tax in Britain over the next two years.

“Any businesses who think that they can carry on dodging that fair share … need to wake up and smell the coffee,” Cameron said, adding that he was not anti-business but wanted to keep tax rates low for everyone else.

Cameron’s Conservative party has long been criticised for being close to big business, but the prime minister’s speech indicated a change of tone towards companies avoiding tax.

“The public who buy from them have had enough,” he said

MOUNTING PRESSURE

Much of the anger in Britain has come from smaller local retailers who are unable to take advantage of international tax arrangements while they struggle with high rents and low consumer spending.

With politicians ramping up the pressure, Goldman Sachs also came in for criticism over plans, since scrapped, to delay paying bonuses to its bankers in Britain to exploit an income tax cut for top earners that is due in April.

The bank changed its plans after being publicly rebuked by the Bank of England Governor Mervyn King.

Despite growing public anger it will be difficult to change the rules.

“Cameron’s statements on the taxation of multinational companies will no doubt receive strong support,” said Ben Jones, a tax expert at law firm Eversheds. “But he will have to work hard to … avoid the issue becoming mired by the bureaucracy of international tax policy.

“Central to many of the tax structures put in place by multinational companies are the international rules on transfer pricing. Changing these rules requires broad international agreement, which typically takes a long time to obtain.”

The Trades Union Congress – Britain’s labour union federation – said Cameron’s government needed to start by making the British tax system far more transparent.

That process may be helped by a Supreme Court ruling on Wednesday which said that advice by accountants could not be kept secret in the same way that legal counsel is confidential.

“David Cameron has been quick to highlight the problem of tax avoidance but slow to actually do anything about it,” the TaxPayers’ Alliance, which campaigns for lower tax rates, said in response to the speech.

“Families are left feeling short-changed and let down by their politicians because international corporations can take advantage of loopholes and reliefs not open to them,” it said.

It was a view that struck a chord on the streets of a cold London on Thursday. “It’s disgusting … We pay tax, we haven’t got a choice,” said Clive Read, a 54-year-old printer. “They should pay their taxes, just like other companies.”

(Reporting by Kate Holton and Costas Pitas in London; Writing by Kate Holton; Editing by Peter Graff and Giles Elgood)

Fire on Boeing worrying: US authorities

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US authorities investigating problems with the much-heralded Boeing 787 Dreamliner jet planes have expressed grave concerns over “unprecedented” fire on the aircraft.

“This is an unprecedented event. We are very concerned. We do not expect to see fire events on board aircraft,” AFP quoted Deborah Hersman, chairwoman of the National Transportation Safety Board (NTSB), as saying on Thursday.

Boeing 787 Dreamliner has been troubled by a series of bad news this month, including fire aboard a Japan Airlines-operated 787 Dreamliner at Logan International Airport in Boston on January 7.

Hersman said the NTSB had still not determined what caused the fire on the aircraft, but she said that testing so far showed that the battery experienced a thermal runaway, short circuits, and a fire.

“We are early in our investigation,” she noted, adding that “we are working very hard to determine what happened and why it happened.”

The fire and a second 787 battery problem, which forced an emergency landing of an aircraft in Japan on January 15, prompted aviation authorities in the US and elsewhere to order the global grounding of all 50 787s in operation worldwide on January 16.

MN/HN

Car Thief Drives Off With Seven-Week-Old Baby

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A mother said she was “shocked” after a car thief drove off with her newborn as the father stood near by talking to a friend.

Thomas Moulsdale, 24, suddenly became aware someone had snuck in the driver’s side door and was driving off with his seven-week-old son, Leo, on the back seat.

He tried to open the passenger door shouting that his baby son was in the back but the thief drove on.

The child’s mother Louise Waine said: “It made me feel sick. I didn’t know what to do…I was shocked and I just said stop and broke down. I said I don’t know where to look…”

It was a frantic 15 minutes for Mr Moulsdale and his fiance before the child was found safe and well in the car, which had been left close to a pub.

“Then we got a phone call…saying they’d found him…we shot down and I grabbed him out of the seat. I just felt ill. I can’t believe someone would do that,” she said.

Police are now appealing for any witnesses to the drama – which happened in Moor Road in Orrell, Wigan at 7.35pm on Tuesday – to contact them.

Detective Constable Brendan Greally, from Wigan CID, said: “We can only imagine the distress that the parents of this young baby must have gone through after their son was taken from them in this manner.

“Thankfully, their nightmare was only short-lived after the baby was found safe and well inside the vehicle around 15 minutes later.”

Police were told that the baby had been left in the abandoned blue Subaru Impreza on Maine Street, Billinge, by an anonymous caller.

The thief is described as a white man in his 20s, wearing a dark-coloured hat, a dark hooded top and lighter-coloured trousers or tracksuit bottoms.

Anyone with information is urged to call police on 101 or the independent charity Crimestoppers , anonymously, on 0800 555 111.

Azeri police clash with protesters

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Azeri police officers detain a protester in Ismayilli, some 175 kilometers (110 miles) from the capital Baku, Azerbaijan, January 24, 2013.

Police in central Azerbaijan have clashed with thousands of people protesting against local authorities.

On Thursday, thousands of people demonstrated near the residential building of the local governor in the city of Ismayilli, situated some 175 kilometers (110 miles) from the capital Baku. The protesters demanded the governor’s resignation. They also torched the governor’s house.

According to witnesses, police used tear gas, rubber bullets, and water cannons to disperse the angry protesters. Reports say scores of people were arrested and several law enforcement officers injured. The Ismaili district police said the injured were transferred to local hospitals for medical treatment.

The unrest began when Emil Shamsaddinov, a 22-year-old local hotel owner, got into a fight with a local motorist after a minor car crash. Ismayilli residents reacted angrily, setting fire to the owner’s hotel — Chyrag Hotel– as well as several of his cars.

The hotel was reportedly used for prostitution. Reports say that local officials had failed to heed demands for the hotel to be shut.

Unrest of this kind against authorities is rare in Azerbaijan.

MAM/HN

Del. Shane Robinson and Sen. Karen Montgomery Introduce Statewide Ban on Fracking

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Annapolis, MD – January 24 – Today, Delegate Shane Robinson (D-39) introduced new legislation in Maryland’s House of Delegates that would institute a statewide ban on hydraulic fracturing, also known as fracking. Consumer advocates Food & Water Watch, part of a coalition of 22 environmental groups who co-signed a letter to Governor Martin O’Malley and the Maryland General Assembly supporting a ban, has worked closely with Del. Robinson and Sen. Karen Montgomery on the ban bill’s development. The legislation, which will be cross-filed by Sen. Montgomery next week, is being introduced on behalf of Marylanders who believe that fracking is inherently unsafe.

Fracking is now a legitimate concern for all Marylanders. A recent U.S. Geological Survey report outlined additional gas basins, potential targets for expansion of the oil and gas industry into central and southern Maryland and the Eastern Shore – all part of the Chesapeake Bay Watershed – in addition to two western counties. Advocates of the bill say a moratorium and additional studies will not make fracking safe in Maryland.

“Maryland should not invest taxpayer money into funding studies about fracking – those resources should instead be put towards renewable energy,” said Maryland Del. Shane Robinson. “We need not look further than our neighbors in Pennsylvania to see the kind of destruction fracking is capable of bringing to our residents and our environment. The only way to truly protect Maryland from the risks associated with fracking is to ban it throughout the state, and I plan to work with my colleagues in the Legislature to make that happen.”

“Fracking is touted as a moneymaker for Maryland,” said Senator Karen Montgomery. “What is not counted in the equation are the severe environmental problems not addressed, including groundwater contamination by unknown contaminants and the inability to safely dispose of used and contaminated fracking wastewater.”

“We commend Del. Robinson and Sen. Montgomery for introducing legislation that would actually protect Maryland against the inherent dangers of fracking,” said Mitch Jones, director of the Common Resources Program for Food & Water Watch. “The oil and gas industry could turn Maryland into a sacrifice zone for a few years’ worth of shale gas. As we’ve seen in other states, and in Washington, energy companies have successfully lobbied to receive exemptions from regulations such as the Safe Drinking Water Act, which means they don’t have to disclose chemicals used in the fracking process to state regulators and the public. We can’t rely on a flawed regulatory regime to protect our water and the health of our families. This bill puts public and environmental health before industry profits.”

“The case against fracking is compelling based on its damage to the environment and our health alone,” said Megan Cronin, Clean Water Advocate at Environment Maryland. “But, fracking’s negative impacts on our environment and health come with heavy “dollars and cents” costs as well. From increased demand for public services to renewing and replacing public infrastructure, from the public health costs due to air and water pollution to the depletion of natural resources, the costs of fracking are too high. Maryland needs to ban fracking now, before it’s too late.”

Fracking is the dangerous and controversial method of injecting water, sand and chemicals underground at extremely high pressures to break up rock formations, allowing oil or gas to flow more easily into a well. Drilling and fracking have resulted in widespread cases of water contamination and local air pollution problems across the country. Disposal of the massive amounts of fracking wastewater from each new well poses problems as well. Health professionals across the country have voiced concern about the potential health effects on communities where drilling and fracking is occurring and highlighted the lack of cumulative health impact assessments.

The 22 groups who support a ban on fracking include ARK Church, Centre for Wellness, Baltimore Green Forum, Spirit and Nature Group Gunpowder Friends Meeting of the Religious Society of Friends, Centennial Caroline Street United Methodist Church, Climate Change Initiative of Howard County, Community Research, Crossroads Community Food Network, East Baltimore Community Corporation, Inc., Energy Justice Network, Environment Maryland, Food & Water Watch, Greenbelt Climate Action Network, Maryland PIRG, McElderry Park Community Association, Montgomery Countryside Alliance, Assateague Coastkeeper, Baltimore Harbor Waterkeeper, Patuxent Riverkeeper, Potomac Riverkeeper, Severn Riverkeeper, Young Democrats of Harford County, and Young Democrats of Montgomery County.

Food & Water Watch is a nonprofit consumer organization that works to ensure clean water and safe food. We challenge the corporate control and abuse of our food and water resources by empowering people to take action and by transforming the public consciousness about what we eat and drink.

Del. Shane Robinson and Sen. Karen Montgomery Introduce Statewide Ban on Fracking

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Annapolis, MD – January 24 – Today, Delegate Shane Robinson (D-39) introduced new legislation in Maryland’s House of Delegates that would institute a statewide ban on hydraulic fracturing, also known as fracking. Consumer advocates Food & Water Watch, part of a coalition of 22 environmental groups who co-signed a letter to Governor Martin O’Malley and the Maryland General Assembly supporting a ban, has worked closely with Del. Robinson and Sen. Karen Montgomery on the ban bill’s development. The legislation, which will be cross-filed by Sen. Montgomery next week, is being introduced on behalf of Marylanders who believe that fracking is inherently unsafe.

Fracking is now a legitimate concern for all Marylanders. A recent U.S. Geological Survey report outlined additional gas basins, potential targets for expansion of the oil and gas industry into central and southern Maryland and the Eastern Shore – all part of the Chesapeake Bay Watershed – in addition to two western counties. Advocates of the bill say a moratorium and additional studies will not make fracking safe in Maryland.

“Maryland should not invest taxpayer money into funding studies about fracking – those resources should instead be put towards renewable energy,” said Maryland Del. Shane Robinson. “We need not look further than our neighbors in Pennsylvania to see the kind of destruction fracking is capable of bringing to our residents and our environment. The only way to truly protect Maryland from the risks associated with fracking is to ban it throughout the state, and I plan to work with my colleagues in the Legislature to make that happen.”

“Fracking is touted as a moneymaker for Maryland,” said Senator Karen Montgomery. “What is not counted in the equation are the severe environmental problems not addressed, including groundwater contamination by unknown contaminants and the inability to safely dispose of used and contaminated fracking wastewater.”

“We commend Del. Robinson and Sen. Montgomery for introducing legislation that would actually protect Maryland against the inherent dangers of fracking,” said Mitch Jones, director of the Common Resources Program for Food & Water Watch. “The oil and gas industry could turn Maryland into a sacrifice zone for a few years’ worth of shale gas. As we’ve seen in other states, and in Washington, energy companies have successfully lobbied to receive exemptions from regulations such as the Safe Drinking Water Act, which means they don’t have to disclose chemicals used in the fracking process to state regulators and the public. We can’t rely on a flawed regulatory regime to protect our water and the health of our families. This bill puts public and environmental health before industry profits.”

“The case against fracking is compelling based on its damage to the environment and our health alone,” said Megan Cronin, Clean Water Advocate at Environment Maryland. “But, fracking’s negative impacts on our environment and health come with heavy “dollars and cents” costs as well. From increased demand for public services to renewing and replacing public infrastructure, from the public health costs due to air and water pollution to the depletion of natural resources, the costs of fracking are too high. Maryland needs to ban fracking now, before it’s too late.”

Fracking is the dangerous and controversial method of injecting water, sand and chemicals underground at extremely high pressures to break up rock formations, allowing oil or gas to flow more easily into a well. Drilling and fracking have resulted in widespread cases of water contamination and local air pollution problems across the country. Disposal of the massive amounts of fracking wastewater from each new well poses problems as well. Health professionals across the country have voiced concern about the potential health effects on communities where drilling and fracking is occurring and highlighted the lack of cumulative health impact assessments.

The 22 groups who support a ban on fracking include ARK Church, Centre for Wellness, Baltimore Green Forum, Spirit and Nature Group Gunpowder Friends Meeting of the Religious Society of Friends, Centennial Caroline Street United Methodist Church, Climate Change Initiative of Howard County, Community Research, Crossroads Community Food Network, East Baltimore Community Corporation, Inc., Energy Justice Network, Environment Maryland, Food & Water Watch, Greenbelt Climate Action Network, Maryland PIRG, McElderry Park Community Association, Montgomery Countryside Alliance, Assateague Coastkeeper, Baltimore Harbor Waterkeeper, Patuxent Riverkeeper, Potomac Riverkeeper, Severn Riverkeeper, Young Democrats of Harford County, and Young Democrats of Montgomery County.

Food & Water Watch is a nonprofit consumer organization that works to ensure clean water and safe food. We challenge the corporate control and abuse of our food and water resources by empowering people to take action and by transforming the public consciousness about what we eat and drink.

Reacting to Reports of a Schumer Proposal, Campaign for America’s Future Warns Democrats: Do Not Cut Social Security

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WASHINGTON – January 24 – In response to a report in The Hill that Sen. Charles Schumer (D-N.Y.) may be floating a proposal that includes cuts to Social Security and Medicare, Roger Hickey, co-director of the Campaign for America’s Future made the following statement:

“If Sen. Schumer’s proposal was accurately reported, the senator could not be more wrong. Just as President Obama declared in his inauguration speech that America does not have to cut Social Security or Medicare, Sen. Schumer reportedly offers up cuts to those crucial programs in vain hope of getting Republican support for tax increases. Just as Republican leaders have been forced to back away from threatening to crash the economy to force Democrats to accept cuts to Social Security and Medicare, Sen. Schumer capitulates to the hostage taking that Republicans appear to be abandoning.

“I hope the news reports are wrong because Sen. Schumer has previously been a strong opponent of cuts to Social Security. The Campaign for America’s Future reminds him and all Democrats that the chained CPI would mean an immediate cut to current Social Security benefits. These cuts are very unpopular with all Americans, and Democrats should be leading the fight to protect Social Security and Medicare, not helping Republicans accomplish their harmful goals.”

According to The Hill: “Schumer’s plan to enact tax reform through the budget process would ensure additional tax revenues would be matched by an equal amount in spending cuts.” And, “The joint budget resolution could also call for Medicare reforms and using the chained CPI formula to curb the cost of Social Security benefits.”

The Campaign for America’s Future is the strategy center for the progressive movement. Our goal is to forge the enduring progressive majority needed to realize the America of shared prosperity and equal opportunity that our country was meant to be.

Reacting to Reports of a Schumer Proposal, Campaign for America’s Future Warns Democrats: Do Not Cut Social Security

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WASHINGTON – January 24 – In response to a report in The Hill that Sen. Charles Schumer (D-N.Y.) may be floating a proposal that includes cuts to Social Security and Medicare, Roger Hickey, co-director of the Campaign for America’s Future made the following statement:

“If Sen. Schumer’s proposal was accurately reported, the senator could not be more wrong. Just as President Obama declared in his inauguration speech that America does not have to cut Social Security or Medicare, Sen. Schumer reportedly offers up cuts to those crucial programs in vain hope of getting Republican support for tax increases. Just as Republican leaders have been forced to back away from threatening to crash the economy to force Democrats to accept cuts to Social Security and Medicare, Sen. Schumer capitulates to the hostage taking that Republicans appear to be abandoning.

“I hope the news reports are wrong because Sen. Schumer has previously been a strong opponent of cuts to Social Security. The Campaign for America’s Future reminds him and all Democrats that the chained CPI would mean an immediate cut to current Social Security benefits. These cuts are very unpopular with all Americans, and Democrats should be leading the fight to protect Social Security and Medicare, not helping Republicans accomplish their harmful goals.”

According to The Hill: “Schumer’s plan to enact tax reform through the budget process would ensure additional tax revenues would be matched by an equal amount in spending cuts.” And, “The joint budget resolution could also call for Medicare reforms and using the chained CPI formula to curb the cost of Social Security benefits.”

The Campaign for America’s Future is the strategy center for the progressive movement. Our goal is to forge the enduring progressive majority needed to realize the America of shared prosperity and equal opportunity that our country was meant to be.

Filibuster “Compromise” Actually a Capitulation, Common Cause Asserts

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WASHINGTON – January 24 – Today’s announced “compromise” on Senate filibuster reform is in fact a capitulation by Senate Majority Leader Harry Reid, who now has missed two excellent opportunities to restore the Senate to its proper role as a working legislative body, Common Cause said.

“My friend Harry Reid, the senator from Searchlight, NV, has gone missing in the fight for filibuster reform,” said Common Cause President Bob Edgar. “The deal he and Sen. McConnell have struck allows individual senators to continue blocking debate and action by the entire body and to do so without explaining themselves to their colleagues or the American people. This is not the Senate of debate and deliberation our founders envisioned.

Edgar invited senators who remain committed to ending the 60-vote requirement for conducting most Senate business to join in Common Cause’s lawsuit challenging the constitutionality of the filibuster rule. The case is before the U.S. Court of Appeals in Washington following a lower court judge’s ruling in December that Common Cause and other plaintiffs, including four members of the House of Representatives, lacked legal standing to sue.

“We’re convinced that in a trial on the merits, we can demonstrate that the filibuster is unconstitutional and was never contemplated by America’s founders,” Edgar said. “The Constitution requires a supermajority for Senate action in just a handful of circumstances, including ratification of treaties and convicting the President in an impeachment trial, but the filibuster has expanded that to cover virtually every piece of legislation and every judicial or executive branch nomination.”

Edgar praised and congratulated Sens. Jeff Merkley and Tom Udall, whose determined drive for changes to the filibuster rule brought the issue to prominence and pushed Reid and McConnell to act, as well as Sen. Tom Harkin, who for more than a decade has championed filibuster reform.

“These senators and others have given the reform effort their best shot but through no fault of their own have come up short,” he said. “It’s now clear that the Senate will not fix the filibuster and the President lacks authority to fix it. We must turn to the judicial branch to enforce the Constitution.”

Filibuster “Compromise” Actually a Capitulation, Common Cause Asserts

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WASHINGTON – January 24 – Today’s announced “compromise” on Senate filibuster reform is in fact a capitulation by Senate Majority Leader Harry Reid, who now has missed two excellent opportunities to restore the Senate to its proper role as a working legislative body, Common Cause said.

“My friend Harry Reid, the senator from Searchlight, NV, has gone missing in the fight for filibuster reform,” said Common Cause President Bob Edgar. “The deal he and Sen. McConnell have struck allows individual senators to continue blocking debate and action by the entire body and to do so without explaining themselves to their colleagues or the American people. This is not the Senate of debate and deliberation our founders envisioned.

Edgar invited senators who remain committed to ending the 60-vote requirement for conducting most Senate business to join in Common Cause’s lawsuit challenging the constitutionality of the filibuster rule. The case is before the U.S. Court of Appeals in Washington following a lower court judge’s ruling in December that Common Cause and other plaintiffs, including four members of the House of Representatives, lacked legal standing to sue.

“We’re convinced that in a trial on the merits, we can demonstrate that the filibuster is unconstitutional and was never contemplated by America’s founders,” Edgar said. “The Constitution requires a supermajority for Senate action in just a handful of circumstances, including ratification of treaties and convicting the President in an impeachment trial, but the filibuster has expanded that to cover virtually every piece of legislation and every judicial or executive branch nomination.”

Edgar praised and congratulated Sens. Jeff Merkley and Tom Udall, whose determined drive for changes to the filibuster rule brought the issue to prominence and pushed Reid and McConnell to act, as well as Sen. Tom Harkin, who for more than a decade has championed filibuster reform.

“These senators and others have given the reform effort their best shot but through no fault of their own have come up short,” he said. “It’s now clear that the Senate will not fix the filibuster and the President lacks authority to fix it. We must turn to the judicial branch to enforce the Constitution.”

White House Petition for Constitutional Amendment on Campaign Cash Clears Threshold

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WASHINGTON – January 24 – Today, a petition on the White House website urging President Obama to “use the State of the Union to call for a constitutional amendment to get big money out of politics” exceeded the 25,000 signatures necessary to guarantee an official White House response. The petition, launched by the groups Free Speech For People, Avaaz, People For the American Way, and Demos on January 8 took less than two weeks to cross the threshold.

The petition can be found here: http://wh.gov/P9j7

Fixing our campaign finance system has long been a cause President Obama supports, though he failed to make progress on it during his first term. During his re-election campaign, President Obama told supporters that: “Over the longer term, I think we need to seriously consider mobilizing a constitutional amendment process to overturn Citizens United . . . . Even if the amendment process falls short, it can shine a spotlight of the super-PAC phenomenon and help apply pressure for change.”

The petition calls on the President to reiterate and strengthen this call in the State of the Union, and comes just two days after President Obama delivered an inaugural address that many believe reflected a renewed willingness on his part to fight for core goals he has long supported even in the face of challenges.

“Americans everywhere are asking President Obama to take the lead on the one issue that unlocks all the others: getting big money out of our political system, to restore our government of, by, and for the people,” said Peter Schurman, Campaign Director at Free Speech For People. “‘We the people’ means all the people, not just the wealthy few, and not the corporations.”

Ian Bassin, Campaign Director at Avaaz, said: “We the people have spoken and the message is clear: We’re sick of oil industry money setting our energy agenda, the Wall Street dollar determining our economic policy, and gun company cash dictating how we protect our kids. We need elections not auctions and we’re counting on President Obama to lead us there, starting with his State of the Union.”

The petition may also be the last White House petition to garner a response after receiving 25,000 signatures. It also may be the most serious of the latest round. Last week, after responding to petitions to deport Piers Morgan and to build a Death Star, the White House upped the threshold for guaranteeing a response to 100,000. But petitions like this campaign finance one that were launched before the change were grandfathered at the 25,000 threshold.

“This petition provides more evidence for what we already know — that Americans want a solution to the corrupting influence of big money in our democracy,” said Marge Baker, Executive Vice President of People For the American Way. “We saw massive amounts of money pour into last year’s elections, much of which was undisclosed. Using the megaphone provided to them by the Supreme Court’s Citizens United decision, corporate special interests are drowning out the voices of ordinary voters. President Obama calling for a constitutional remedy in the upcoming State of the Union Address would draw attention to this critical situation and mobilize even more Americans into action.”

“This is the moment President Obama should take a strong and decisive step toward ending big money’s stranglehold on our politics and our economy, and cement his legacy by leading the effort to finally forge a democracy in which the strength of a citizen’s voice does not depend upon the size of her wallet,” said Demos Counsel Adam Lioz.

After the coalition involved in launching this petition posted it to the White House website, its growth came from citizens expressing their frustration with the flood of money infecting our political system. Much of this public frustration stems from the U.S. Supreme Court’s 2010 decision in Citizens United v. FEC that corporations have a constitutional right to spend unlimited sums to influence elections. In the wake of that decision, more than $6 billion was spent in the 2012 elections, much of it by corporations and anonymous billionaires. Congress responded by proposing amendments to reverse that decision and eleven states and nearly 500 cities and towns have joined this call.

This petition tees up for President Obama the key question of what he’ll do next to deliver on a core, unfulfilled promise of his first campaign: to change the way Washington works. The groups behind the petition will continue to campaign until he does.

Avaaz.org is a new global web movement with a simple democratic mission: to close the gap between the world we have, and the world most people everywhere want. “Avaaz” means “Voice” in many Asian, Middle Eastern and Eastern European languages. Across the world, most people want stronger protections for the environment, greater respect for human rights, and concerted efforts to end poverty, corruption and war. Yet globalization faces a huge democratic deficit as international decisions are shaped by political elites and unaccountable corporations — not the views and values of the world’s people.

White House Petition for Constitutional Amendment on Campaign Cash Clears Threshold

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WASHINGTON – January 24 – Today, a petition on the White House website urging President Obama to “use the State of the Union to call for a constitutional amendment to get big money out of politics” exceeded the 25,000 signatures necessary to guarantee an official White House response. The petition, launched by the groups Free Speech For People, Avaaz, People For the American Way, and Demos on January 8 took less than two weeks to cross the threshold.

The petition can be found here: http://wh.gov/P9j7

Fixing our campaign finance system has long been a cause President Obama supports, though he failed to make progress on it during his first term. During his re-election campaign, President Obama told supporters that: “Over the longer term, I think we need to seriously consider mobilizing a constitutional amendment process to overturn Citizens United . . . . Even if the amendment process falls short, it can shine a spotlight of the super-PAC phenomenon and help apply pressure for change.”

The petition calls on the President to reiterate and strengthen this call in the State of the Union, and comes just two days after President Obama delivered an inaugural address that many believe reflected a renewed willingness on his part to fight for core goals he has long supported even in the face of challenges.

“Americans everywhere are asking President Obama to take the lead on the one issue that unlocks all the others: getting big money out of our political system, to restore our government of, by, and for the people,” said Peter Schurman, Campaign Director at Free Speech For People. “‘We the people’ means all the people, not just the wealthy few, and not the corporations.”

Ian Bassin, Campaign Director at Avaaz, said: “We the people have spoken and the message is clear: We’re sick of oil industry money setting our energy agenda, the Wall Street dollar determining our economic policy, and gun company cash dictating how we protect our kids. We need elections not auctions and we’re counting on President Obama to lead us there, starting with his State of the Union.”

The petition may also be the last White House petition to garner a response after receiving 25,000 signatures. It also may be the most serious of the latest round. Last week, after responding to petitions to deport Piers Morgan and to build a Death Star, the White House upped the threshold for guaranteeing a response to 100,000. But petitions like this campaign finance one that were launched before the change were grandfathered at the 25,000 threshold.

“This petition provides more evidence for what we already know — that Americans want a solution to the corrupting influence of big money in our democracy,” said Marge Baker, Executive Vice President of People For the American Way. “We saw massive amounts of money pour into last year’s elections, much of which was undisclosed. Using the megaphone provided to them by the Supreme Court’s Citizens United decision, corporate special interests are drowning out the voices of ordinary voters. President Obama calling for a constitutional remedy in the upcoming State of the Union Address would draw attention to this critical situation and mobilize even more Americans into action.”

“This is the moment President Obama should take a strong and decisive step toward ending big money’s stranglehold on our politics and our economy, and cement his legacy by leading the effort to finally forge a democracy in which the strength of a citizen’s voice does not depend upon the size of her wallet,” said Demos Counsel Adam Lioz.

After the coalition involved in launching this petition posted it to the White House website, its growth came from citizens expressing their frustration with the flood of money infecting our political system. Much of this public frustration stems from the U.S. Supreme Court’s 2010 decision in Citizens United v. FEC that corporations have a constitutional right to spend unlimited sums to influence elections. In the wake of that decision, more than $6 billion was spent in the 2012 elections, much of it by corporations and anonymous billionaires. Congress responded by proposing amendments to reverse that decision and eleven states and nearly 500 cities and towns have joined this call.

This petition tees up for President Obama the key question of what he’ll do next to deliver on a core, unfulfilled promise of his first campaign: to change the way Washington works. The groups behind the petition will continue to campaign until he does.

Avaaz.org is a new global web movement with a simple democratic mission: to close the gap between the world we have, and the world most people everywhere want. “Avaaz” means “Voice” in many Asian, Middle Eastern and Eastern European languages. Across the world, most people want stronger protections for the environment, greater respect for human rights, and concerted efforts to end poverty, corruption and war. Yet globalization faces a huge democratic deficit as international decisions are shaped by political elites and unaccountable corporations — not the views and values of the world’s people.

Public Citizen Welcomes Forthcoming Appointment of Former Prosecutor Mary Jo White to Chair Securities and Exchange Commission

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WASHINGTON – January 24 – The expected appointment of former prosecutor Mary Jo White to chair the Securities and Exchange Commission (SEC) could be a sign that the second Obama administration plans to get stronger on financial crime, Public Citizen said today.

For almost 10 years, White was the U.S. attorney in Manhattan, building a reputation as a tough prosecutor with expertise in complex securities and financial fraud cases.

“Failure to hold any significant Wall Street figure accountable for the most massive economic crimes in history demands remedy,” said Bartlett Naylor, financial reform advocate for Public Citizen. “We hope that White’s record as a white-collar crime fighter will lead to strong SEC enforcement under her tenure.”

In addition, the SEC recently put on its agenda a proposal for a new rule that would require public companies to disclose political expenditures. Public Citizen led a petition drive to get the rule considered, garnering more than 320,000 signatures for the petition which was filed by a group of bipartisan academics. The number of public comments is an SEC record.

“White can demonstrate her allegiance to investors and the American public by advancing the political disclosure rule for public companies that is now under consideration,” said Lisa Gilbert, director of Public Citizen’s Congress Watch division.

“She also can prove her commitment by acting on the many stalled Dodd-Frank Wall Street reform act rules,” added Naylor. “We look to the new chair to protect investors and move these rules forward to protect average investors and Main Street.”

Public Citizen is a national, nonprofit consumer advocacy organization founded in 1971 to represent consumer interests in Congress, the executive branch and the courts.

Public Citizen Welcomes Forthcoming Appointment of Former Prosecutor Mary Jo White to Chair Securities and Exchange Commission

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WASHINGTON – January 24 – The expected appointment of former prosecutor Mary Jo White to chair the Securities and Exchange Commission (SEC) could be a sign that the second Obama administration plans to get stronger on financial crime, Public Citizen said today.

For almost 10 years, White was the U.S. attorney in Manhattan, building a reputation as a tough prosecutor with expertise in complex securities and financial fraud cases.

“Failure to hold any significant Wall Street figure accountable for the most massive economic crimes in history demands remedy,” said Bartlett Naylor, financial reform advocate for Public Citizen. “We hope that White’s record as a white-collar crime fighter will lead to strong SEC enforcement under her tenure.”

In addition, the SEC recently put on its agenda a proposal for a new rule that would require public companies to disclose political expenditures. Public Citizen led a petition drive to get the rule considered, garnering more than 320,000 signatures for the petition which was filed by a group of bipartisan academics. The number of public comments is an SEC record.

“White can demonstrate her allegiance to investors and the American public by advancing the political disclosure rule for public companies that is now under consideration,” said Lisa Gilbert, director of Public Citizen’s Congress Watch division.

“She also can prove her commitment by acting on the many stalled Dodd-Frank Wall Street reform act rules,” added Naylor. “We look to the new chair to protect investors and move these rules forward to protect average investors and Main Street.”

Public Citizen is a national, nonprofit consumer advocacy organization founded in 1971 to represent consumer interests in Congress, the executive branch and the courts.

“محو الدول عن الخارطة”: من ذا الذي يفشل “الدول الفاشلة”ØŸ

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البروفيسور ميشيل شوسودوفسكي

ترجمة: علي شكري

“ثمة شائعة خطيرة يجري تداولها حول العالم ويمكنها أن تفضي إلى عواقب خطيرة، مفادها أن الرئيس الإيراني قد هدد بتدمير إسرائيل، أو، طبقاً للعبارة الملفقة المنسوبة إليه “يجب محو إسرائيل من على الخارطة”. وخلافاً للاعتقاد الشائع، فإن هذا العبارة لم ترد إطلاقاً على لسانه” (أراش نوروزي، المحو عن الخارطة: شائعة العصر كانون الثاني/يناير 2007)

“لقد هاجمت الولايات المتحدة، على نحو مباشر أو غير مباشر، نحو 44 بلداً في العالم منذ العام 1945ØŒ بل إنها هاجمت بعضها على نحو متكرر. وكان الهدف المعلن لتلك التدخلات العسكرية إحداث “تغيير في نظام الحكم”. وفي كل الحالات كانت تستخدم ذرائع “الديمقراطية” Ùˆ”حقوق الإنسان” لتبرير تلك الأعمال الأحادية غير القانونية. (البروفيسور إريك واندل، حملة الولايات المتحدة الصليبية (1945 — )ØŒ غلوبال ريسيرتش، شباط/فبراير 2007)

“هذه مذكرة [للبنتاغون] تصف كيف سنقوم باجتياح سبعة بلدان خلال خمس سنوات، بدءاً بالعراق ثم سورية، لبنان، ليبيا، الصومال، السودان، وانتهاءاً بإيران. قلت هل هي سرية للغاية؟ قال “نعم يا سيدي”ØŒ فقلت إذن لا ترني إياها.” (الجنرال ويسلي كلارك، ديموكراسي ناو، 2 آذار/مارس، 2007)

* * * * * *

إن واشنطن هي بصدد تدمير قائمة طويلة جداً من البلدان.

فمن ذا الذي يمارس “محو البلدان من على الخارطة” إذن؟ إيران أم الولايات المتحدة؟

 Ø®Ù„ال الفترة التي تسمى من قبيل الكياسة “حقبة ما بعد الحرب”–والتي تمتد من العام 1945 وحتى الآن– شنت الولايات المتحدة هجمات عسكرية مباشرة أو غير مباشرة على أكثر من 40 بلداً.

وفيما تقوم السياسة الخارجية الأمريكية على مبدأ نشر الديمقراطية، فإن النزعة التدخلية الأمريكية —بالوسائل العسكرية والعمليات السرية–أدت إلى إشاعة عدم الاستقرار وتمزيق وحدة دول ذات سيادة.

إن تدمير الدول جزء من المشروع الإمبريالي لبسط هيمنتها العالمية. وطبقاً للمصادر الرسمية، فإن لدى الولايات المتحدة 737 قاعدة عسكرية خارج حدودها. (إحصائية 2005)

مصطلح “الدول الفاشلة”

“يتوقع” تقرير التوجهات العالمية (كانون الأول/ديسمبر 2012) الصادر عن مجلس الاستخبارات القومي في واشنطن NICØŒ أن تتحول 15 دولة في أفريقيا وآسيا والشرق الأوسط إلى “دول فاشلة” بحلول العام 2030 كنتيجة للمنازعات المحتملة والمعضلات البيئية.

وتشمل قائمة البلدان في تقرير المجلس للعام 2012 كلاً من أفغانستان، النيجر، مالي، كينيا، بوروندي، إثيوبيا، راوندا، الصومال، جمهورية الكونغو الديمقراطية، ملاوي، هايتي، اليمن. (انظر ص 39)

وفي تقريرها للعام 2005 والذي نشر عشية التجديد للولاية الثانية للرئيس جورج بوش، توقع مجلس الاستخبارات القومي أن تصبح الباكستان دوبة فاشلة بحلول العام 2015 “تحت تأثير الحرب الأهلية والطلبنة والصراع من أجل السيطرة على الأسلحة النووية.

وقورنت الحالة الباكستانية وقتها بيوغسلافيا التي تشظت إلى سبع دول تابعة بعد عقد من “الحروب الأهلية” التي رعاها وأدارها الناتو والولايات المتحدة.

وتوقعت NIC أن تتحول الباكستان إلى دولة شبيهة بيوغسلافيا تمزقها الحروب الأهلية وحمامات الدم والصراعات الإفليمية (إينرجي كومباس 2 آذار/مارس 2005).

وفيما يشير إلى أن الدول الفاشلة تصبح ملاذاً آمناً للمتطرفين دينياً وسياسياً (ص 143)، فإن التقرير لا يعترف بحقيقة أن الولايات المتحدة وحلفاءها قد دأبت منذ السبعينات من القرن الماضي على تقديم الدعم السري لقوى التطرف الديني كوسيلة لزعزعة استقرار دول وطنية علمانية. فكلا اليلدين باكستان وأفغانستان كان علمانياً خلال السبعينات.

الدول الفاشلة من الطراز اليوغسلافي أو الصومالي ليست نتيجة للانفسامات الاجتماعية الداخلية، بل هي هدف استراتيجي تم تحقيقه عبر العمليات السرية بما في ذلك العسكرية.

يقوم صندوق السلام Fund for Peace في واشنطون المتخصص في “الأبحاث من أجل الأمن المستدام” سنوياً بنشر مؤشر الدول الفاشلة Failed States Index بالاستناد إلى تقييم المخاطر (انظر الخارطة). ثمة 33 دولة جرى تصنيفها كدول فاشة (ضمن فئتي الإنذار Alert أو التنبيه Warn).

ووفقاً لصندوق السلام، فإن “الدول الفاشلة” هي أهداف للإرهابيين المرتبطين بالقاعدة.

ويأتي التصنيف التراتبي السنوي لصندوق السلام ومجلة فورين بوليسي للدول الفاشلة والهشة بمؤشرات عالمية مثيرة للقلق في وقت تتصاعد فيه المخاوف الدولية من إقامة المتطرفين المرتبطين بالقاعدة دويلة حاضنة في شمال مالي لتوسيع نشاطاتهم الجهادية.

وبطبيعة الحال، لم يشر التفرير إلى تاريخ القاعدة بوصفها أداة استخبارية أمريكية أو إلى دورها في نشر الانقسامات والاضطرابات في الشرق الأوسط وآسيا الوسطى وأفريقيا، حيث تشكل نشاطاتها في معظم هذه المناطق جزءاً من الأجندات الاستخبارية السرية الشيطانية.

الدول الضعيفة والفاشلة: تهديد لأمريكا

بمنطق ملتوٍ، يزعم الكونغرس الأمريكي أن الدول الفاشلة الضعيفة إنما تمثل تهديداً لأمن الولايات المتحدة. وتتضمن هذه “عدداً من التهديدات الصادرة عن دول توصف بدرجات متفاوتة كدول ضعيفة، هشة، واهنة، غير مستقرة، مضطربة، فاشلة، مأزومة، أو منهارة“.

عندما انتهت الحرب الباردة في مطلع التسعينات، لاحظ المحللون تشكل بيئة جديدة للأمن الدولي تصبح فيها الدول الفاشلة والضعيفة منصات للجريمة المنظمة العابرة للحدود، وانتشار المواد والتكنولوجيا النووية، وبؤراً ساخنة للمنازعات الأهلية والأزمات الإنسانية. وأصبحت احتمالات المخاطر التي تمثلها الدول الفاشلة والضعيفة أكثر وضوحاً مع هجوم القاعدة في 11 أيلول/سبتمبر 2001 على الولايات المتحدة التي دبرها أسامة بن لادن من ملاذه الآمن الذي وفرته له أفغانستان. وقد دفعت أحداث 11/9 الرئيس جورج دبليو بوش إلى الزعم (في وثيقة استراتيجية الأمن القومي الأمريكي للعام 2002) بأن “الدول الضعيفة، مثل أفغانستان، يمكن أن تمثل خطراً على مصالحنا القومية لا يقل عما تمثله الدول القوية.” (الدول الضعيفة والفاشلة: المخاطر المتنامية والسياسة الأمريكية، تقرير مركز خدمات أبحاث الكونغرس CRS إلى الكونغرس، واشنطن 2008)

ما أغفله تقرير مركز خدمات أبحاث الكونغرس هو أن “البؤر النشطة للجريمة المنظمة والنزاعات الأهلية” إنما هي ناتجة عن العمليات الاستخبارية السرية الأمريكية.

 Ù…Ù† الحقائق الموثقة جيداً، أن اقتصاد المخدرات الأفغاني الذي ينتج أكثر من 90% من إجمالي الإنتاج العالمي من الهيروين يتشابك مع عمليات تبييض أموال بالمليارات تشارك فيها كبرى المؤسسات المالية العالمية. وتحظى تجارة المخدرات الأفغانية بحماية الـCIA وقوات الاحتلال الأطلسي في ذلك البلد.

تصنيف سورية كـ”بلد فاشل”

تهيء الفظائع التي ارتكبت بحق الشعب السوري من قبل الجيش السوري الحر المدعوم أمريكياً وأطلسياً الشروط الضرورية لحرب طائفية. ومن شأن التطرف الطائفي تحطيم سورية كدولة وطنية واضمحلال السلطة المركزية في دمشق.

إن هدف السياسة الخارجية لواشنطن هو تحويل سورية إلى ما يسميه المجلس الاستخباري القومي الأمريكي NIC “بلداً فاشلاً”. فتغيير النظام يعني المحافظة على وجود سلطة مركزية، ولكن تطور الأزمة السورية يشي بأن “تغيير النظام” لم يعد هو الهدف، بل تقسيم وتدمير سورية كدولة وطنية.

فالاستراتيجية الأمريكية-الأطلسية-الإسرائيلية تقوم على تقسيم البلاد إلى ثلاث دول ضعيفة. حيث نجد أن آخر التقارير الإخبارية تزعم إنه “إذا رفض بشار الأسد التنازل عن السلطة” فإن “البديل سيكون بلداً فاشلاً كالصومال.”

أحد السيناريوهات المحتملة للتقسيم والذي جاء في تقرير صحفي إسرائيلي، يتضمن دويلات “مستقلة” سنية وعلوية-شيعية وكردية ودرزية.

فبحسب الجنرال في الجيش الإسرائيلي يائير غولان فإن “سورية هي في حرب أهلية ستنتهي بها دولة فاشلة يزدهر فيها الإرهاب.” ويضيف الجنرال غولان بأن الجيش الإسرائيلي يقوم حالياً بتحليل “الكيفية التي ستتشظى بها سورية” (رويترز 31 أيار/مايو، 2012)

في شهر تشرين الثاني/نوفمبر الماضي، صرح مبعوث السلام الأممي الاخضر الابراهيمي بأن سورية قد تتحول إلى “صومال أخرى”ØŒ …”محذراً من سيناريو تملأ فيه المليشيات وأمراء الحرب الفراغ الذي سيخلفه انهيار سلطة الدولة.” (رويترز 22 تشرين الثاني/نوفمبر، 2012)

“ما أخشاه هو الأسوء …انهيار الدولة وتحول سورية إلى صومال أخرى.”

“أعتقد بأنه ما لم يتم التعامل مع القضية بشكل صحيح، فإن الخطر هو “الصوملة” وليس التقسيم؛ انهيار الدولة وبروز أمراء الحرب والميليشيات والجماعات المقاتلة.” (المصدر السابق)

بيد أن المبعوث الأممي للسلام لم يشر إلى حقيقة أن تحطيم الصومال كان عملاً مدبراً. لقد كان جزءاً من خطة عسكرية واستخبارية أمريكية سرية، يعاد تطبيقها حالياً في عدد من البلدان المستهدفة في الشرق الأوسط وأفريقيا وآسيا والتي تصنف كـ”بلدان فاشلة”.

السؤال المركزي هو: من ذا الذي يُفشل الدول فيجعلها فاشلة؟ من الذي “يمحيها عن الوجود”ØŸ

إن التفتيت المدبر لسورية كدولة ذات سيادة لهو جزء متكامل من خطة عسكرية واستخبارية تشمل أيضاً كلاً من لبنان وإيران وباكستان. فبحسب “تنبؤات” المجلس القومي للاستخبارات [الأمريكية]ØŒ فإن تفتيت باكستان مخطط للإنجاز خلال السنوات الثلاث المقبلة.

How the NRA Went From Best Friend of the Nation’s Police to Harsh Enemy of Law Enforcement

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As it became more unwilling to compromise over even minor gun controls, the NRA is now on the bad side of police.

Photo Credit: Shutterstock.com

January 24, 2013  |  

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For years, the National Rifle Association cultivated a reputation as an unbeatable political powerhouse–a legacy that was challenged on Thursday with the introduction of major new gun control legislation in the U.S. Senate banning more than 100 military-style guns.

But the NRA’s tough reputation unwinds if one delves into the history behind its harshest rhetoric–which began in the 1970s and escalated as former allies, notably America’s police, rejected its increasingly militant demands. What today’s NRA would like to forget is how its unbending extremism led to a losing streak in Congress two decades ago, a period whose gun politics echo today but gun controls nevertheless passed.

Perhaps the best way to understand how the NRA is not the all-powerful lobby it seeks to portray itself as is to look at how the organization went from being a “best friend” of the nation’s police to a political enemy of law enforcement, from federal agents at the top of the ladder to local police chiefs and police unions below. As it became more outspoken and unwilling to compromise over insignificant gun controls, it became the group it remains today, vainly claiming to be the last line against impending government tryanny.

“Once you go down that road, how do you walk that rhetoric back?” said Robert Spitzer, a gun rights historian and SUNY-Cortland’s political science department chairman.

“Obama wants to turn the idea of absolutism into a dirty word,” NRA executive director Wayne LaPierre said in a speech to Nevada hunters on Tuesday, responding to Monday’s inaugural address in which the president chastized groups like the NRA for their unending hyperbole and vitriol. “He wants to put every private, personal firearms transaction right under the thumb of the federal government… And anyone who says that’s excessive, President Obama says that’s an absolutist.”

Pro-Government Before Anti-Government

In the heat of today’s political fights, where excessive emotion, exaggerated threats and hyperbole are routine, it’s easily forgotten that the NRA once stood with government.

For much of its 143-year history, the NRA’s survival depended on a cozy relationship with the government. It relied on state subsidies at its founding and then federal subsidies for marksmanship contests for generations. The U.S. military provided free guns or sold them at cost to NRA members for decades. Thousands of soldiers helped run annual shooting contests. Local police departments turned to the NRA for training.

In the late 1960s, that relationship began to change–and so did the NRA. Democrats in Congress threatened to end a $3 million shooting competition subsidy, asking why it was needed at the height of the Vietnam War. In 1968, Congress increased the regulation of guns sales and dealers in response to that decade’s urban riots and the assassinations of Rev. Martin Luther King, Jr. and Sen. Robert Kennedy. By 1977, these perceived slights allowed libertarian hardliners in the NRA to wrest control, ousting old-school sportsmen and claiming that America’s gun owners needed aggressive new defenders.

Today, many people forget how the NRA started calling agents at the Bureau of Alcohol, Tobacco and Firearms, who were charged with enforcing federal gun laws, “Nazis” in the early 1970s and again after the 1995 bombing of the Oklahoma City federal building by NRA member Timothy McVeigh. They forget that when District of Columbia proposed a ban on handguns, an NRA member on its city council said the ban would help revive the Klu Klux Klan in nearby Maryland and Virginia. They forget that the NRA opposed banning bullets that could pierce police vests, opposed banning guns with plastic parts that were not seen by airport x-ray scanners, and launched vicious PR campaigns aimed not just at members of Congress who supported gun controls but likeminded city police chiefs. 

The Derivative Bubble: Speculating on Food Prices, Banking on Famine

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bankster

Why does it seem like wherever there is human suffering, some giant bank is making money off of it? According to a new report from the World Development Movement, Goldman Sachs made about 400 million dollarsbetting on food prices last year. Overall, 2012 was quite a banner year for Goldman Sachs. As I reported in a previous article, revenues for Goldman increased by about 30 percent in 2012 and the price of Goldman stock has risen by more than 40 percent over the past 12 months. It is estimated that the average banker at Goldman brought in a pay and bonus package of approximately $396,500 for 2012. So without a doubt, Goldman Sachs is swimming in money right now. But what is the price for all of this “success”?

Many claim that the rampant speculation on food prices by the big banks has dramatically increased the global price of food and has caused the suffering of hundreds of millions of poor families around the planet to become much worse. At this point, global food prices are more than twice as high as they were back in 2003. Approximately 2 billion people on the planet spend at least half of their incomes on food, and close to a billion people regularly do not have enough food to eat. Is it moral for Goldman Sachs and other big banks such as Barclays and Morgan Stanley to make hundreds of millions of dollars betting on the price of food if that is going to drive up global food prices and make it harder for poor families all over the world to feed themselves?

This is another reason why the derivatives bubble is so bad for the world economy. Goldman Sachs and other big banks are treating the global food supply as if it was some kind of a casino game. This kind of reckless activity was greatly condemned by the World Development Movement report…

“Goldman Sachs is the global leader in a trade that is driving food prices up while nearly a billion people are hungry. The bank lobbied for the financial deregulation that made it possible to pour billions into the commodity derivative markets, created the necessary financial instruments, and is now raking in the profits. Speculation is fuelling volatility and food price spikes, hurting people who struggle to afford food across the world.”

So shouldn’t there be a law against this kind of a thing?

Well, in the United States there actually is, but the law has been blocked by the big Wall Street banks and their very highly paid lawyers. The following is another excerpt from the report…

“The US has passed legislation to limit speculation, but the controls have not been implemented due to a legal challenge from Wall Street spearheaded by the International Swaps and Derivatives Association, of which Goldman Sachs is a leading member. Similar legislation is on the table at the EU, but the UK government has so far opposed effective controls. Goldman Sachs has lobbied against controls in both the US and the EU.”

Posted below is a chart that shows what this kind of activity has done to commodity prices over the past couple of decades. You will notice that commodity prices were fairly stable in the 1990s, but since the year 2000 they have been extremely volatile…

Commodity Prices

The reason for all of this volatility was explained in an excellent articleby Frederick Kaufman…

The money tells the story. Since the bursting of the tech bubble in 2000, there has been a 50–fold increase in dollars invested in commodity index funds. To put the phenomenon in real terms: In 2003, the commodities futures market still totaled a sleepy $13 billion. But when the global financial crisis sent investors running scared in early 2008, and as dollars, pounds, and euros evaded investor confidence, commodities – including food – seemed like the last, best place for hedge, pension, and sovereign wealth funds to park their cash. “You had people who had no clue what commodities were all about suddenly buying commodities,” an analyst from the United States Department of Agriculture told me. In the first 55 days of 2008, speculators poured $55 billion into commodity markets, and by July, $318 billion was roiling the markets. Food inflation has remained steady since.

The money flowed, and the bankers were ready with a sparkling new casino of food derivatives. Spearheaded by oil and gas prices (the dominant commodities of the index funds) the new investment products ignited the markets of all the other indexed commodities, which led to a problem familiar to those versed in the history of tulips, dot–coms, and cheap real estate: a food bubble. Hard red spring wheat, which usually trades in the $4 to $6 dollar range per 60-pound bushel, broke all previous records as the futures contract climbed into the teens and kept on going until it topped $25. And so, from 2005 to 2008, the worldwide price of food rose 80 percent —and has kept rising.

Are you angry yet?

You should be.

Poor families all over the planet are suffering so that Wall Street bankers can make bigger profits.

It’s disgusting.

Many big financial institutions just seem to love to make money on the backs of the poor. I have previously reported on how JP Morgan makes billions of dollars issuing food stamp cards in the United States. When the number of Americans on food stamps goes up, so does the amount of money that JP Morgan makes. You can read much more about all of this right here: “Making Money On Poverty: JP Morgan Makes Bigger Profits When The Number Of Americans On Food Stamps Goes Up“.

Sadly, the global food supply is getting tighter with each passing day, and things are looking rather ominous for the years ahead.

According to the United Nations, global food reserves have reached their lowest level in nearly 40 years. Global food reserves have not been this low since 1974, but the population of the world has greatly increased since then. If 2013 is another year of drought and bad harvests, things could spiral out of control rather quickly…

World grain reserves are so dangerously low that severe weather in the United States or other food-exporting countries could trigger a major hunger crisis next year, the United Nations has warned.

Failing harvests in the US, Ukraine and other countries this year have eroded reserves to their lowest level since 1974. The US, which has experienced record heatwaves and droughts in 2012, now holds in reserve a historically low 6.5% of the maize that it expects to consume in the next year, says the UN.

“We’ve not been producing as much as we are consuming. That is why stocks are being run down. Supplies are now very tight across the world and reserves are at a very low level, leaving no room for unexpected events next year,” said Abdolreza Abbassian, a senior economist with the UN Food and Agriculture Organisation (FAO).

The world has barely been able to feed itself for some time now. In fact, we have consumed more food than we have produced for 6 of the last 11 years…

Evan Fraser, author of Empires of Food and a geography lecturer at Guelph University in Ontario, Canada, says: “For six of the last 11 years the world has consumed more food than it has grown. We do not have any buffer and are running down reserves. Our stocks are very low and if we have a dry winter and a poor rice harvest we could see a major food crisis across the board.”

“Even if things do not boil over this year, by next summer we’ll have used up this buffer and consumers in the poorer parts of the world will once again be exposed to the effects of anything that hurts production.”

We desperately need a good growing season next summer, and all eyes are on the United States. The U.S. exports more food than anyone else does, and last summer the United States experienced the worst drought that it had seen in about 50 years. That drought left deep scars all over the country. The following is from a recent Rolling Stone article…

In 2012, more than 9 million acres went up in flames in this country. Only dredging and some eleventh-hour rain kept the mighty Mississippi River from being shut down to navigation due to low water levels; continuing drought conditions make “long-term stabilization” of river levels unlikely in the near future. Several of the Great Lakes are soon expected to hit their lowest levels in history. In Nebraska last summer, a 100-mile stretch of the Platte River simply dried up. Drought led the USDA to declare federal disaster areas in 2,245 counties in 39 states last year, and the federal government will likely have to pay tens of billions for crop insurance and lost crops. As ranchers became increasingly desperate to feed their livestock, “hay rustling” and other agricultural crimes rose.

Ranchers were hit particularly hard. Because they couldn’t feed their herds, many ranchers slaughtered a tremendous number of animals. As a result, the U.S. cattle herd is now sitting at a 60 year low.

What do you think that is going to do to meat prices over the next few years?

Meanwhile, the drought continues. According to the U.S. Drought Monitor, this is one of the worst winter droughts the U.S. has ever seen. At this point, more than 60 percent of the entire nation is currently experiencing drought.

If things don’t turn around dramatically, 2013 could be an absolutely nightmarish year for crops in the United States. If 2013 does turn out to be another bad year, food prices would soar both in the U.S. and on the global level. The following is from a recent CNBC article…

The severe drought that swept through much of the U.S. last year is continuing into 2013, threatening to cripple economic growth while forcing consumers to pay higher food prices.

“The drought will have a significant impact on prices, especially beef, pork and chicken,” said Ernie Gross, an economic professor at Creighton University and who studies farming issues.

So let us hope for the best, but let us also prepare for the worst.

It looks like higher food prices are on the way, and millions of poor families all over the planet will be hard-pressed to feed their families.

Meanwhile, Goldman Sachs will be laughing all the way to the bank.

Lawsuit Filed to Stop Unregulated Fracking in California

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SAN FRANCISCO – January 24 – The Center for Biological Diversity went to court today to compel California regulators to enforce an existing state law that should protect people and the environment from hydraulic fracturing, or fracking, a rapidly spreading new method of oil and gas extraction. The lawsuit filed this morning in Alameda County Superior Court says the California Division of Oil, Gas and Geothermal Resources has allowed fracking to expand without legally required oversight.

California law applies safeguards and disclosure requirements to any underground injection carried out by the oil and gas industry, the lawsuit points out, and fracking clearly involves injection. Yet the state does not yet regulate or even monitor this controversial practice.

“A looming fracking boom threatens to transform California, creating serious pollution risks to our air, water and climate,” said the Center’s Vera Pardee. “Existing rules clearly cover fracking, but state officials don’t regulate or even track this dangerous way of extracting oil and gas. The state needs to stop ignoring the law and start protecting our environment.”

Fracking involves blasting massive amounts of water and industrial chemicals, mixed with sand, deep into the earth at pressures high enough to crack apart geologic formations, causing fractures that let oil and gas move into the wells and to the surface. 

More than 600 wells in at least nine California counties were fracked in 2011 alone, and recent advances in fracking techniques are driving a growing interest in the Monterey Shale, a geological formation holding an estimated 15 billion barrels of oil.

Reports have documented the dangers of fracking, including more than 1,000 instances of water contamination around the country. Fracking also emits hazardous air pollutants and methane, a potent greenhouse gas. It has the potential to induce seismic activity in one of the nation’s most earthquake-prone states.

California’s existing oil and gas regulations cover all forms of underground injection and clearly apply to fracking. While fracking was exempted from the federal Safe Drinking Water Act in 2005 by what is known as the “Halliburton loophole,” no such exemption exists in California law.

Compliance with California’s existing oil and gas regulations would require disclosure of all fracking chemicals, as well as engineering studies and tests to evaluate the potential for underground migration of fracking fluids. State regulators would also need to ensure that fracking is conducted in a way that prevented, as far as possible, damage to life, health, property, and California’s water and other natural resources.

In response to growing public concern, state regulators have issued a “discussion draft” of new regulations that would cover fracking; but these regulations have not yet been formally proposed, much less finalized.

“At present, industry fracks whenever and however it deems fit, and that practice has to stop,” said Pardee. “State regulators must implement the requirements that are already in place to provide better protection for the air we breathe and the water we drink.”

At the Center for Biological Diversity, we believe that the welfare of human beings is deeply linked to nature – to the existence in our world of a vast diversity of wild animals and plants. Because diversity has intrinsic value, and because its loss impoverishes society, we work to secure a future for all species, great and small, hovering on the brink of extinction. We do so through science, law, and creative media, with a focus on protecting the lands, waters, and climate that species need to survive.

Clegg Appears To Say Ministers Cut Capital Spending Too Deeply

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Deputy Prime Minister Nick Clegg appeared to admit that the coalition cut capital spending too deeply when it took power.

Speaking ahead of the release of figures tomorrow that are expected to show a fresh contraction in the UK economy, he said ministers had “comforted” themselves at the time that the reduction was in line with plans drawn up by the previous Chancellor, Labour’s Alistair Darling.

nick clegg

Clegg appears to admit cuts were too deep

Mr Clegg said ministers now realised money for infrastructure was needed to foster recovery and the Government must do more to fuel capital investment if Britain does plunge into a triple dip recession.

In an interview with The House magazine, he said: “If I’m going to be sort of self-critical, there was this reduction in capital spending when we came into the Coalition Government.

“I think we comforted ourselves at the time that it was actually no more than what Alistair Darling spelt out anyway, so in a sense everybody was predicting a significant drop off in capital investment.

“But I think we’ve all realised that you actually need, in order to foster a recovery, to try and mobilise as much public and private capital into infrastructure as possible.

“Wherever we can we’ve got to mobilise more capital investment. The economic evidence is overwhelming. It helps create jobs now – people go on to construction sites. It raises the productive capacity of the economy in the longer run.

“Money in people’s pockets, people on low and middle incomes, and, and mobilise capital investment will always remain my two – I mean, there are plenty of other things: supply-side reforms, making us more competitive and so on, there’s fixing the banks, but those two are the ones I always single out.”

Experts believe gross domestic product (GDP) will have fallen by 0.1% in the final quarter of 2012, putting the country on course for an unprecedented triple-dip recession.

city of london

Fears grow over prospect of triple-dip recession

Asked if the Government should change tack if that becomes a reality, Mr Clegg said: “What kind of things do I think we need to do where we can? I would single out two things.

“Firstly, we need to try, wherever we can, to put money back in the pockets of people on middle and low incomes, because all the evidence is that it is those people that will tend to spend a bit more money on the high street if they feel they’ve got a few extra pennies in their pockets.”

He added: “And secondly, wherever we can we’ve got to mobilise more capital investment into productive capital because the economic evidence is overwhelming. It helps create jobs now, people go on to construction sites, it raises the productive capacity of the economy in the longer run.”

Labour has repeatedly urged the Government to implement a “plan B” for economic recovery based on temporary tax cuts and to bring forward long-term infrastructure investment.

Rachel Reeves, shadow chief secretary to the Treasury, said: “This is the first admission that this Government has made serious mistakes on the economy. But the real question is what Nick Clegg’s Government is going to do about it. We have urged ministers to bring forward infrastructure investment and build thousands more homes, but they have refused to listen.

“Nick Clegg also claims he wants to put money into the pockets of people on middle and low incomes. So he should now admit that the VAT rise was a mistake and cancel the plan to cut tax credits for working families on modest incomes on the day millionaires get a tax cut.”

Canada tribal chief ends hunger strike

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Attawapiskat First Nations Chief Theresa Spence ended a 44-day hunger strike after indigenous groups and opposition parties signed a deal on January 24, 2013.

A prominent tribal chief in Canada has ended her six-week-long hunger strike over aboriginal rights after indigenous groups and opposition parties signed a deal.

Attawapiskat First Nations Chief Theresa Spence had lived off fish broth and resided in a tent on Victoria Island in Ottawa since December 11 until Thursday, according to her spokesman Danny Metatawabin.

Metatawabin said the chief spent Wednesday night in hospital and that the 49-year-old was recovering from the aftereffects of starvation.

“She’s fine. But her body is tired and weak,” he said.

Spence made the decision to eat solid food after opposition parties and indigenous leaders signed a declaration spelling out a list of demands they will present to the government.

The declaration calls for the government to improve housing and schools as well as to acknowledge treaty rights for Canada’s 600 tribes.

Spence started the hunger strike to pressure the government into meeting the aborigines’ demands, which has led to protests across Canada.

On January 16, hundreds of demonstrators, many carrying flags and signs, called on the federal government to listen to aboriginal concerns.

The protests over the past two months had prompted the United Nations to urge Canadian Prime Minister Stephen Harper’s government to set up talks in accordance with the standards expressed in the organization’s Declaration on the Rights of Indigenous Peoples.

Since December 14, 2012, indigenous peoples in Canada have held demonstrations against the government who, on that day, approved Bill C-45 through parliament to change the rules about aboriginal land.

GVN/HN

Antibiotic Armageddon: Drug resistant diseases could trigger UK apocalypse

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An employee displays MRSA (Methicillin-resistant Staphylococcus aureus) bacteria strain inside a petri dish containing agar jelly for bacterial culture.(Reuters / Fabrizio Bensch)

An employee displays MRSA (Methicillin-resistant Staphylococcus aureus) bacteria strain inside a petri dish containing agar jelly for bacterial culture.(Reuters / Fabrizio Bensch)

The proliferation of drug resistant diseases is as grave a national security threat as a major terrorist attack or global warming and should be added to the national risk register, England’s senior medical officer warns.

The Chief Medical Officer for England Dame Sally Davies warned said that within 20 years’ time, people would die simply for undergoing simple operations because we might “run out of antibiotics” that still work.

“Antibiotics are losing their effectiveness at a rate that is both alarming and irreversible — similar to global warming,” she told MPs on the House of Commons science and technology committee on Wednesday.

“It is clear that we might not ever see global warming, the apocalyptic scenario is that when I need a new hip in 20 years I’ll die from a routine infection because we’ve run out of antibiotics.”

She added that there was currently only one antibiotic left able to treat the venereal disease gonorrhea.

Davies told the legislators that antibiotic resistance should be added to the national risk register in pursuance of an annual report on infectious disease she is set to publish in March.

The register was established in 2008 to advise the public and businesses on national emergencies that Britain could face in the next five years. Currently, the highest priority risks on the register include a flu pandemic, a catastrophic terrorist attack, and a costal flood as was seen during the 1953 North Sea flood — the last time a national emergency was declared in the UK.

She blamed the potential crisis on the “broken market model for making new antibiotics” which has seen antibiotic development fall by the wayside as the pharmaceutical industry concentrates on more profitable drugs, especially those for chronic diseases.

An ineffective use of antibiotics has also led to the spread of increasingly virulent strains of disease.

Hospital superbugs such as MRSA are amongst the most well-known antibiotic-resistant diseases, but doctors were specifically warned of diseases such as gonorrhea, TB and E. coli which target the populace at large.

This is not the first time Davies has compared the threat of Antibiotic resistance to Climate Change. In November, she said “Antibiotics are losing their effectiveness at a rate that is both alarming and irreversible — similar to global warming.”

Davies has already met with senior officials at the World Health Organization and her counterparts in other countries to hammer out a strategy to tackle the global threat.

The World Health Organization made the drug resistance problem the focus of its 2011 World Health Day, warning that the “world is heading towards a post-antibiotic era, in which many common infections will no longer have a cure and, once again, kill unabated.”

On The News With Thom Hartmann: Virginia Gerrymanders Presidential Votes, Robin Hood Tax Hits Europe, and More

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Thom Hartmann here — on the news…

You need to know this. Virginia is now poised to be the first state to move legislation forward, which will rig the Electoral College to benefit Republican presidential candidates in the future. On Wednesday, legislation to dole out Electoral College votes based on gerrymandered Congressional districts, instead of the current winner-take-all system, advanced out of a state Senate subcommittee. It now heads to full committee, where it will likely be approved, before heading to the full state Senate, which is controlled by Republicans. So, Republicans have actually taken rigging the next presidential election seriously, with efforts also underway in Pennsylvania, Michigan, and Ohio to do the same thing. Progressives must counter with an equally aggressive push for a national popular vote. Nine states have already passed National Popular Vote laws, which commit their electors to vote for whichever candidate wins the national popular vote, even if that candidate lost the state Electoral College vote. Those nine states that have passed national popular vote laws – including California, Maryland, and Illinois – account for 132 electoral votes among them, nearly half of the 270 needed in the Electoral College to win the White House. If this trend continues, and enough states sign up to bring their combined Electoral College votes to 270, then the Electoral College, which Republicans are currently trying to rig, dies just like that. Let’s get active and fight fire with fire.

In screwed news…Welcome to America, where you have to go to jail to receive the healthcare you need. The Sun-Sentinel, out of Florida, is reporting on a man who threatened to kill President Obama just so he could be arrested, thrown in jail, and receive much-needed medical care. Fifty-seven year old Stephen Espalin told a judge last week that he, “would have no intent to hurt the president”, but he knew federal agents would arrive and “take care of [him].” Espalin made the threat against the President after he was kicked out of a hospital for giving a false name, and lying about having health insurance. Florida’s Governor Rick Scott is critical of Obamacare, and is unlikely to adopt the provision in the law that expands Medicaid coverage in his state, which would help people like Espalin. But now that Espalin is headed to jail, he will receive the care he needs. He’s already receiving chemotherapy, and once he begins his four year prison sentence, he’s scheduled to have heart surgery. This is a cautionary tale of what happens to a nation that doesn’t provide basic medical care to its citizens. Either we make healthcare a basic human right in America, just like it is elsewhere in the developed world, or we commit ourselves to unrest, desperation, and a sick population.

In the best of the rest of the news…

Robin Hood is coming to Europe. On Tuesday, 11 European nations agreed to put in place a financial transaction tax — also known as a Robin Hood tax — on the banks. Such a tax could generate billions in much needed revenue for the cash-strapped continent. The tax, which will range between .1% and .01%, will be applied to all trading in stocks, bonds, and derivatives. According to a statement from the European Council, the purpose of this new tax is, “for the financial industry to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not enhance the efficiency of financial markets.” The participating nations in this Robin Hood tax make up 90% of the EU — and it’s estimated the tax will bring in roughly 37 billion euros annually. According to the European Commissioner in charge of tax policy, Tuesday’s agreement was “a major milestone in tax history.” Now let’s kick start the movement here in the United States to create our own Robin Hood tax.

Well, there’s at least one place now that women will soon see workplace equality: in the military. Today, the Pentagon officially announced that it’s lifting its ban on women in combat, potentially opening up more than 200,000 new combat positions in the military to women. This decision will pave the way for women to serve on the front lines, for the first time in the history of our armed services. The military will have until May to come up with plans to implement these changes — and each branch of the military will have until 2016 to get official exemptions for certain combat roles, which will remain exclusive to men. From allowing gays to openly serve, to now allowing women in combat, President Obama has taken significant steps to bring equality to our military — and he should applauded for his efforts.

Beware of online surveillance. This week, Google released its Transparency Report, revealing a massive increase in government surveillance. According to the report, Google received over 21,000 requests for data from governments and courts worldwide, just in the second half of 2012. That’s a 70% increase from 2009. During that same period, the United State government made the most requests — with more than 8,000 demands for online data. Protecting our online privacy from prying government, and corporate eyes, is the new frontier — and “we the people” are currently losing this struggle.

And finally…following reports that a drone stike in Yemen mistakenly killed two children, the United Nations is launching an official investigation into the legality and death toll of drone warfare. The investigation will focus on 25 different drones strikes carried out by US, UK, and Israeli forces in Afghanistan, Pakistan, Yemen, and Somalia. According to Benn Emmerson, the UN’s special rapporteur on human rights and counter-terrorism, this investigation is, “a response to the fact that there’s international concern rising exponentially, surrounding the issue of remote targeted killings through the use of unmanned vehicles.” This will be President Obama’s biggest foreign policy challenge in his second term — winding down our deadly covert drone warfare programs. And it’s up to us to push him to do what’ right.

And that’s the way it is today — Thursday, January 24, 2013. I’m Thom Hartmann — on the news.

US House approves to lift debt ceiling

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US House of Representatives lifts temporarily the debt ceiling. (file photo)

The US House of Representatives has approved to temporarily lift the country’s debt ceiling.

The House voted on Wednesday to temporarily suspend the national debt ceiling at USD 16.4 trillion until May 19 and at the same time to urge lawmakers to adopt a budget resolution by April 2015.

The US Congress is headed towards a new stalemate with President Barack Obama wanting to raise taxes to curb the USD-16-trillion-plus debt, while Republicans are opposed to any tax hikes.

Republican Paul D. Ryan said on Wednesday that his party’s budget proposal includes balancing the country’s budget within a 10 years’ time without imposing any new tax revenues.

Obama and the democratic leaders in Congress have proposed reducing spending by hundreds of billions of dollars over the next ten years.

Official figures from September 2012 show that more than 46 million Americans, 15 percent of the US population, are living in poverty, making it the highest rate during the past 40 years.

CAH/HN

Removal of Grounded USS Guardian to Take Weeks, Further Threatening Pristine Coral Reef

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Rescue is weeks away for the US Navy minesweeper USS Guardian, which ran aground on a pristine World Heritage-listed coral reef off the Philippine coast last week after ignoring warnings. The ship is reportedly taking on water, and 15,000 gallons of fuel must first be removed before it is lifted out of the water, the Navy said on Thursday.

Philippine protesters accuse the US of negligence which has caused the destruction of a “national treasure.” (Photo via kalikasan) According to Rear Adm. Tom Carney, the operation could take as long as two weeks, further threatening the Tubbataha National Marine Park famous for its rich marine life and coral that rivals Australia’s Great Barrier Reef, of which over 1,000 square meters have already been substantially damaged since the Navy ship smashed into the site on January 17. 

Military publication Stars and Stripes reports:

During a news conference with Philippine military representatives in Palawan, Carney acknowledged that the 224-foot Guardian has moved significantly in the surf on Tubbataha Reef, a World Heritage Site; had been badly damaged with several breaches in the hull, had taken on a “significant” amount of water and now lay 20-30 yards from the edge of the reef with a 10-degree list.

“[The Guardian] will have to be lifted off onto another ship or barge to leave the area,” Carney said. “Right now, the ship could not maneuver on its own and is not operational… The ship is too badly damaged [to be towed] unfortunately.”

Carney added that before the USS Guardian can be removed, about 56,000 liters (15,000 gallons) of fuel will need be siphoned off “to avoid spills.”

Thus far, efforts to remove the fuel have been hampered by rough waters, which have battered the ship repeatedly causing further damage to the marine sanctuary. Another attempt to pump the fuel was made Thursday, AP reports.

“At this moment USS Guardian is stuck atop Tubbataha Reef and continues to wreck our national treasure. The US officials until now offer no clear explanation as to why their ship trespassed into the marine sanctuary,” said Clemente Bautista, national coordinator for environmental network Kalikasan.

According to UNESCO, the marine sanctuary is a “unique example of an atoll reef with a very high density of marine species” which also serves as a nesting site for birds and marine turtles.

Agence France Presse reports:

The incident has stoked anger in the Philippines, with the US Navy yet to explain why it was sailing through a protected marine sanctuary en route to Indonesia.

The head of the agency supervising the sanctuary said this week that the captain of the ship ignored warnings that it was nearing the reef. The agency recommended the US Navy be fined for “unauthorised entry” into the area.

Carney declined to explain why the Guardian was sailing in the area, saying that was still the subject of investigation.

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Russia’s Berezovsky battles ex-partner in UK court

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LONDON (Reuters) – Exiled Russian oligarch Boris Berezovsky’s ex-partner, with whom he has two children, is pursuing him in a British court for a share of his assets, adding to financial pressures on him months after he lost a $6 billion dispute with rival Roman Abramovich.

A High Court judgment published late on Wednesday modified an earlier ruling granting Yelena Gorbunova’s request that up to 200 million pounds ($317 million) of Berezovsky’s assets be frozen, and said only those at risk could be restricted.

Berezovsky was saddled with over $100 million in legal costs when his protracted battle against Abramovich, the owner of Chelsea Football Club, ended in defeat last August.

The oligarch had tried to keep the proceedings between himself and Gorbunova confidential. Some hearings took place last week behind closed doors, but the latest judgment on the asset freeze was published on an online database after complaints from journalists.

“On the evidence, Mr Berezovsky is a man under financial pressure. It is likely that he will feel a more pressing need to satisfy creditors than satisfy Ms Gorbunova,” judge George Mann wrote in his judgment.

Berezovsky, who lives in self-imposed exile in London, did not respond to a Reuters request for a comment.

In her application for the asset freeze order, Gorbunova said Berezovsky had promised that, when he sold his 25-million-pound Wentworth Park country estate, she would receive 5 million pounds from the proceeds.

Instead, when the estate near London was sold last year, the money went to his creditors and she saw none of it.

She also said Berezovsky had told her she was the owner of two French properties which he was now in the process of selling, and she was concerned she would not receive anything from those sales because he needed the money for himself.

Berezovsky’s application to have the freeze on his assets lifted was heard by judge Mann in the High Court last week.

His lawyers argued that Gorbunova’s application for the asset freeze had not followed the correct procedures and that the scale of the freeze was excessive.

“PRESSING NEED”

Mann’s judgment that only the assets at risk, namely the French properties, should be frozen, means Berezovsky will not be able to sell them and dispose of the proceeds until his dispute with Gorbunova is resolved.

The judgment did not put a figure on the value of the properties.

Regarding the Wentworth Park sale, Mann wrote that if Gorbunova was right and “the 5-million-pound bird has already flown”, then there were no funds on which any injunction could bite.

Noting the French properties were held through “obscure offshore structures”, he said there was a risk Berezovsky could manipulate matters to deprive Gorbunova of what she said she was entitled to.

The judge also made reference to Berezovsky’s “propensity to go so far as giving dishonest evidence in pursuit of a claim against another in the Abramovich proceedings”.

This was a reference to judge Elizabeth Gloster’s ruling last year in the Berezovsky-Abramovich case, when she said Berezovsky was an “unimpressive and inherently unreliable witness”.

Mann stressed that he made no judgment about the substance of Gorbunova’s assertions about the assets and the promises she said Berezovsky had made, or the evidence she had put forward.

“That evidence has not yet been tested, and it is to be anticipated that Mr Berezovsky will vigorously contest the claim, dispute a lot of the evidence and advance evidence of his own,” the judge wrote.

($1 = 0.6313 British pounds)

(Reporting by Estelle Shirbon; Editing by Sophie Hares)

Gallup Poll: Americans Most Negative On the Nation And Economy In 30 Years

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Via Michael Krieger of Liberty Blitzkrieg blog,

I guess Americans just haven’t heard of a little something called the stock market. Isn’t that right Bernanke? Wasn’t the stock market rally you engineered supposed to make everyone feel all nice and confident? Well the great middle class squeeze continues, as the stock market is for the 1% what food stamps are for the poor. They are just strategies to keep these groups apathetic and obedient. The middle class isn’t buying it though, as is evidenced by this recent Gallup Poll conducted January 7-10, 2013.

From Gallup:

PRINCETON, NJ – U.S. President Barack Obama begins his second term at a time when Americans are as negative about the state of the country and its prospects going forward as they have been in more than three decades. Fewer than four in 10 Americans (39%) rate the current status of the U.S. at the positive end of a zero to 10 scale. This is about the same as in 2010, but it is fewer than have said so at any point since 1979. As they usually are, Americans are more upbeat in their predictions of where the U.S. will be in five years (48% positive), but this is also lower than at any time since 1979.

The 39% of Americans who give a six to 10 rating when asked to evaluate the nation’s current status is similar to the 37% who said the same three years ago. Prior to that, however, assessments were generally more positive, including a 73% six to 10 rating in January 2001 – the highest on record. The three previous points in time when ratings were as low as or lower than the 2013 rating were in August 1979 (34%), April 1974 (33%), and January 1971 (39%). The 1979 measure came at a time when the economy was in bad shape and inflation was rampant, while the 1974 measure came in the midst of the Watergate scandal. When Gallup first asked the question in August 1959, 68% of Americans rated the state of the nation in the six to 10 range.

What about the future?

The 48% who give a six to 10 ranking when asked to project the status of the U.S. five years from now is tied with the 1979 measure as the lowest in Gallup’s history of asking the question. Additionally, the 40% who give a negative rating (zero to four) when asked to look ahead is lower than at any point in history. These negative ratings include 10% who say the situation of the country in five years will be zero, the worst they can imagine.

Not so much. Don’t worry Bernanke, I’m sure another 50 S&P handles will make everything better.

Full Gallup article here.

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NM Bill Would Require Rape Victims To Stay Pregnant For ‘Evidence’

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This is the latest salvo fired in the Republican war on women. Fortunately for the people of New Mexico, the state legislature is controlled by the Democrats. But this is a perfect example of the sorts of things those creative Republicans dream up if you let down your guard down, or trust them for even a minute with the reins of government:

A Republican lawmaker in New Mexico introduced a bill on Wednesday that would legally require victims of rape to carry their pregnancies to term in order to use the fetus as evidence for a sexual assault trial.

House Bill 206, introduced by state Rep. Cathrynn Brown (R), would charge a rape victim who ended her pregnancy with a third-degree felony for “tampering with evidence.”

“Tampering with evidence shall include procuring or facilitating an abortion, or compelling or coercing another to obtain an abortion, of a fetus that is the result of criminal sexual penetration or incest with the intent to destroy evidence of the crime,” the bill says.

Third-degree felonies in New Mexico carry a sentence of up to three years in prison.

Pat Davis of ProgressNow New Mexico, a progressive nonprofit opposing the bill, called it “blatantly unconstitutional” on Thursday.

“The bill turns victims of rape and incest into felons and forces them to become incubators of evidence for the state,” he said. “According to Republican philosophy, victims who are ‘legitimately raped’ will now have to carry the fetus to term in order to prove their case.“

We Must Stop the Tyrannical Minority

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In the beginning, there were big states and little states. Virginia and Delaware. Pennsylvania and Rhode Island. Georgia and New Hampshire. The little states want to make sure that their voices weren’t drowned out by the big states, that they couldn’t be marginalized or pushed out of the way altogether, and that they could see themselves as equal parts of the American Government.

So, the Framers of the Constitution put protections for the small states into that document – giving them a little bit more say, actually, on a per-capita basis, than the big states. One was that each state, even if it was so small it only had one representative in the House of Representatives, would get two full senators. And the second was that each small state would also get an additional two votes — representing those senators — in the Electoral College.

For most of our national history, the minority never abused these privileges. Though we have recently seen a series of abuses of the Senate filibuster by the Conservative minority.

But, the Electoral College wasn’t created just to protect the minority. It was also, just like the Second Amendment, put in place in part to protect the institution of slavery in the Southern states.

The political problem slave states were facing when the Constitution was written was that there were very few white males — the legal voters of the day — living in those states. There were lots of slaves in those states, but they weren’t allowed to vote.

So, if the president was elected by the national popular vote James Madison originally argued for, very few votes would be coming out of slave states to elect the President of the United States.

And the Southern slave-owners lived in constant fear that some northerner President might try to undo slavery — sorta like Lincoln actually did.

So, the slave states and the small states got the Electoral College to select the President, giving them those extra votes they would have lacked if it was just a national popular vote.

Which brings us to today.

Now that the Republican Party has been hijacked by the Billionaire Class, a very small one-percent sliver of our nation, they’ve taken unprecedented steps to abuse the Electoral College.

In the first election after the Supreme Court’s Citizens United decision, hundreds of millions of dollars in outside spending by oligarchs like the Koch Brothers and Sheldon Adelson put Republicans in control of the traditionally blue states they’d targeted, including Pennsylvania, Wisconsin, Ohio, and Michigan.

Once they got charge of the state legislatures, Republicans gerrymandered congressional districts to increase the number of safe Republican seats and fracture safe Democratic seats. That’s one reason why House Democratic candidates received more than a million votes more than House Republican candidates around the nation last November, yet Republicans still hold a majority in the House of Representatives.

And Republicans are now using these gerrymandered states to push their boldest step yet to rig the next presidential election. It looks like it’s going to happen first in Virginia.

Instead of a winner-take-all system, Republicans want Virginia’s Electoral College votes doled out based on which presidential candidate won each congressional district, with an extra two votes going to the state’s popular vote winner. Republicans in Wisconsin, Ohio, Pennsylvania, and Michigan are considering similar changes. And, RNC Chair Reince Priebus recently threw his support behind the idea.

Just how big of an advantage will Republicans have thanks to these changes? Consider this: President Obama swept the six main battleground states of Florida, Michigan, Ohio, Pennsylvania, Virginia, and Wisconsin last election. Since it’s a winner-take-all system, the President got 106 Electoral College votes, and Romney got zero.

But had this new scheme been in place before the last election, then the President would have only gotten 47 Electoral College votes, while Mitt Romney would have won those states with 59 votes, even though he got trounced in the popular vote in each of those states. And had all the states in the nation made these changes, then Mitt Romney would be our president today, even though he lost the national vote by millions.

Billionaires and the Republicans they own know they’re a minority in America. Their hard-right bigotry toward gays and women turns off young voters. Their xenophobia and mistrust of non-whites have turned off a growing minority electorate. And Reaganomics has been exposed as a scam.

So, today, the majority of us have to do something before the billionaires take over completely. And the best way to do this is to embrace more democracy.

When it comes to the Electoral College, we need to scrap it altogether. Republicans in these states mentioned earlier are trying to pervert the Electoral College so they can steal future Presidential elections.

It should be replaced with more democracy — a national popular vote model that elects our President based on which candidate got the most votes nationwide, plain and simple.

Nine states have already passed National Popular Vote laws, so their electors will vote for whichever candidate wins the national popular vote, even if that candidate lost the state’s Electoral College vote. Those nine states that have passed national popular vote laws – including California, Maryland, and Illinois – account for 132 electoral votes among them, nearly half of the 270 needed in the Electoral College to win the White House.

So, if this trend continues, and enough states sign up to bring their combined Electoral College votes to 270, then the Electoral College, which Republicans are currently trying to rig, dies just like that.

This should be the game plan moving forward. Average working people in America are the majority, not the billionaires and their Republican toadies. And it’s up to us to aggressively push back against this corrupt Conservative minority that’s trying to rig the game.

Mental Health Care and Gun Violence

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WASHINGTON – January 24 – Sen. Bernie Sanders (I-Vt.) said today that the mass killings at Newtown, Conn., and other American communities have revealed serious shortcomings in access to mental health care.

“Our goal must be to provide mental health care in a timely manner and to do all that we can to prevent these tragedies from happening,” Sanders said, but he stressed that the nation’s mental health crisis goes beyond tragedies involving gun violence.

Veterans returning from war with Post Traumatic Stress Disorder or Traumatic Brain Injury conditions too often go undiagnosed and therefore untreated. Schools need more counselors for kids who are being bullied or who experience challenges at home. Better care also is needed for people struggling with depression, anxiety, addiction and stresses related to the economy. 

Sanders is a member of the Senate health committee which held a hearing today on mental health services.

Sanders cited federal reports that more than 90 million Americans live in areas where there is a shortage of mental health professionals. Fewer than one-third of adults and one-half of children with diagnosable mental disorders will actually receive mental health services in a year. The access challenges are particularly acute in rural America where there are not enough psychiatrists to meet the mental health needs of young people and seniors.

While mental health issues sometimes are caught and addressed in doctors’ offices and other primary care settings, there is a severe shortage of primary care physicians in the United States — a problem that will be the subject of a subcommittee hearing that Sanders will chair next Tuesday.

As incoming chairman of the Veterans’ Affairs Committee, Sanders expressed concern that untreated mental health problems contribute to a high rate of suicide. Eighteen veterans per day commit suicide. The problem is so severe that deaths of service members by suicide exceeded deaths in combat last year. Like the health care system in general, VA hospitals and health centers do not have enough mental health practitioners and are not doing enough to treat people in crisis.

“We cannot continue to let down the one-in-four Americans living with a mental health condition and all of us who have loved ones living with mental health conditions, many of whom are not getting the care that they need,” Sanders said. “We must act now. For many it is already too late.”

CODEPINK Protester Disrupts Kerry Nomination Hearing; Calls for an End to US Aid to Israel

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WASHINGTON – January 24 – During Senator Kerry’s Secretary of State nomination hearing, 19-year-old Lachelle Roddy from Tampa, Florida, a student of Hollins University and a staffer in the CODEPINK Washington DC office, spoke out and demanded an end to US military aid to Israel and a halt to belligerent US policies towards the entire Middle East region. “We’re killing thousands of people in the Middle East who are not a threat to us. When is it going to be enough? When are enough people going to be killed? I’m tired of my friends in the Middle East not knowing if they’re going to live to see the next day!”

After she spoke, Senator Kerry acknowledged her sentiments and said that people around the world “measure what we do,” hopefully signaling the possibility of a change in American foreign policy during the next administration.

With inaugural weekend over and the next term off to a start, CODEPINK and other activists groups are calling on the President and Congress to pursue a peace platform, which includes ending the proliferation and use of killer drones, and halting US military aid to Israel which is being used to oppress the Palestinians.

Roddy was arrested is currently being held by Capitol Police, and will be available later for interviews. Please contact Alli McCracken in the CODEPINK DC office to schedule them at 860 575 5692.

CODEPINK is a women-initiated grassroots peace and social justice movement working to end the wars in Iraq and Afghanistan, stop new wars, and redirect our resources into healthcare, education, green jobs and other life-affirming activities. CODEPINK rejects foreign policies based on domination and aggression, and instead calls for policies based on diplomacy, compassion and a commitment to international law. With an emphasis on joy and humor, CODEPINK women and men seek to activate, amplify and inspire a community of peacemakers through creative campaigns and a commitment to non-violence.

World on a string: DNA to be used for data storage

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RIA Novosti / S. Solovjev

RIA Novosti / S. Solovjev

From cave paintings to cloud computing, man has sought out increasingly complex ways to store data. Now researchers have found that nature’s own hard drive — DNA – can be synthesized to back up a world of knowledge in the information age.

On Wednesday researchers from the UK-based European Bioinformatics Institute (EBI) published findings in the journal, Nature, describing how they had stored all 154 of Shakespeare’s sonnets, a digital photo of their lab, a PDF of the 1953 study that described the structure of DNA, and a 26-second sound clip from Martin Luther King Jr.’s “I Have a Dream” speech, in manufactured DNA.

“We already know that DNA is a robust way to store information because we can extract it from bones of woolly mammoths, which date back tens of thousands of years, and make sense of it,” says study co-author Nick Goldman of the EBI.

“It’s also incredibly small, dense and does not need any power for storage, so shipping and keeping it is easy,” he continued.

DNA is in fact such an effective means of storage that the researchers estimate that at least 100 million hours of high-definition video would fit in a cup of it.

“A gram of DNA would hold the same information as a bit over a million compact discs,” Goldman said. “Your storage options are: one thing a bit smaller than your little finger, or a million CDs.”

DNA is a long, coiled molecular “ladder” comprising four nucleobases — adenine, cytosine, guanine and thymine — which are usually abbreviated as A, C, G and T. The various sequences of these four nucleobases are what encodes information in all known living organisms.

With the aid of a simple cipher, the scientists converted the ones and zeroes used in computing code into the four-letter alphabet of DNA code.

The EBI team is not the first to encode DNA. In 2012 a Harvard University research team published a paper in Science magazine, outlining their own method of DNA storage.

Goldman says their study stands apart because of the intrinsic measures that offset potential mistranslations.

Currently, technology only allows for the manufacture of DNA in short strings, and reading it is prone to error, as the same DNA letters are repeated over and over. But the researchers settled on a code structure that skillfully avoided both pitfalls.

“We knew we needed to make a code using only short strings of DNA, and to do it in such a way that creating a run of the same letter would be impossible. So we figured, let’s break up the code into lots of overlapping fragments going in both directions, with indexing information showing where each fragment belongs in the overall code, and make a coding scheme that doesn’t allow repeats. That way, you would have to have the same error on four different fragments for it to fail — and that would be very rare,” co-author Ewan Birney, Associate Director of EMBL-EBI, told Science Daily.

The code was then sent to Agilent, a US biotech company which produces synthetic DNA using a device similar to an inkjet printer.

“We downloaded the files from the web and used them to synthesize hundreds of thousands of pieces of DNA. The result looks like a tiny piece of dust,” Emily Leproust of Aglient said.

Agilent then mailed the sample back to the EBI, where the researchers soaked the DNA in a solution to reconstitute it and used standard sequencing machines to decipher the code. All the files were recovered and read with 100 percent accuracy.

DNA could be useful for keeping huge amounts of information that must be kept for a long time but not retrieved very often, the researchers said. In order to store it, it would simply need to be freeze-dried and stored in a cold, dry and dark place, for anywhere between 600 to 5,000 years.

DNA storage does not come cheap, however. While Agilent Technologies worked pro bono for the sake of science, they say the commercial rate for DNA synthesis runs between $10,000 and $30,000.

But the researchers argued in Nature that “current trends in technological advances are reducing DNA synthesis costs at a pace that should make our scheme cost-effective for sub-50-year archiving within a decade.”

In the meantime, national archives and libraries will likely be the first beneficiaries, though it will eventually be possible for consumers to store information they want to have around in perpetuity, like wedding photos or videos for future grandchildren, Goldman said in an email to AP.

The researchers said they had no intention of ever putting the synthetic DNA into a living being, and it could never accidently become part of anything organic because its coding scheme would not be compatible.

“We have absolutely no intention of messing with life,” said Goldman.

Great escape: Army and police called in as 15,000 crocodiles flee South African farm

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A Nile crocodile.(Reuters / Petr Josek Snr)

A Nile crocodile.(Reuters / Petr Josek Snr)

Army and police units have been called in to rescue residents after thousands of crocodiles escaped from a South African farm that was hit by a flood. The reptiles have since been spotted roaming the Limpopo river and surrounding area.

­The owners of Rakwena Crocodile Farm were forced to open their gates on Wednesday to prevent a storm surge that could tear down the walls of their house, after water levels in the nearby Limpopo river rose rapidly.

15,000 of the reptiles then made a dash for it, swarming the surrounding flood waters, prompting police and the army to step in, AFP reports.

“There used to be only a few crocodiles in the Limpopo River,” Zane Langman, the son-in-law of Johan Boshoff, who owns Rakwena told South Africa’s Beeld newspaper. “Now there are a lot.”

Since then scores have been recaptured, but at least half remain on the loose, scattered far and wide. One of them was even spotted 120 kilometers (75 miles) away on a school rugby field.

Zane Langman went on to add that he’d had to save one of his friends from a flooded house being circled by crocodiles.

“We sailed on a boat, and were surprised at how our friends have held on for so long. Crocodiles swam around the house. Thankfully, our friends were still alive,” he said.

The crocs are said to be easier to catch at night as their eyes glow red in the dark. The reptile that have escaped were identified as Nile crocodiles, the largest crocodile species in Africa and second largest in the world, with some growing up to five meters long. They are extremely dangerous and can attack humans.

Animal safety experts have warned people to stay at home and remain vigilant for any croc sightings, though no incidents involving crocodile attacks have been reported.

The rains in the Limpopo province started falling last Wednesday and serious floods hit the region. Ten people were killed have so far been killed in the downpours, with several missing and scores left homeless. Rescue teams have been sent to areas along the Limpopo River, where many buildings are in danger of being washed away. Floods have also savaged neighboring Mozambique, where tens thousands of people have been evacuated from their homes.

Will The Super Goldman Mario Brothers Succeed In Covering Up The Latest Italian Bailout Scandal?

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“And the hits just keep on coming.”

It was about a week ago when Bloomberg reported that the world’s oldest bank, Sienna’s Banca Monte dei Paschi (BMPS) had masked a massive (for its size) loss courtesy of a Deutsche Bank-facilitated derivative transaction dubbed “Project Santoini.” The trade, which led to a $2 billion loan from Deutsche Bank in December 2008, helped Monte Paschi mitigate a €367 loss from an older derivative contract with Deutsche Bank. As part of the arrangement, the Italian lender made a losing bet on the value of the country’s government bonds: one wonders if DB made BMPS buy some of its Italian holdings because, as is well-known, it was about this time that the German bank was getting uber bearish on all the periphery (for more on the details of the derivative read here).

This was the first time anyone in the general public had head about “Project Santorini.”

Not surprisingly “Santorini” did not help the firm and in a few months later, the firm sought a €1.9 billion bailout from the Italian government – the first of many. Then in 2012, the bank requested more bailout funds after it became the only bank to fail the minimum capital requirement set by European regulators. CEO Fabrizio Viola, 55, requested an additional 500 million euros, bringing the total cost of the bailout to 3.9 billion euros, after the lender said in November that structured financings linked to government securities had soured. It is likely that yet another bailout of BMPS is imminent.

Then yesterday, as we reported, that BMPS had engaged in yet another previously undisclosed derivative trade named “Alexandria”, this time with Nomura whose impact we immediately unclear but one which would result in an earnings hit of €220 million. However, while previously BMPS tried to get off the hook and put the blame on Deutsche, in this case Nomura said the bank’s Chairman, Giuseppe Mussari, had “fully reviews and approved” the trade.

This was the first time anyone in the general public had head about “Project Alexandria.”

And the market finally took notice, maybe because of the news of two previously unknown and losing derivative deals with two separate banks, both of which had supposedly gotten the blessing of the regulator – the Bank of Italy – coming to light in under one week, or maybe because the abovementioned Mussari promptly quit his post as Italy’s top banking lobbyist in the aftermath of the disclosures: in all ways analogous to the departure of the US assistant attorney general yesterday in the aftermath of the “Untouchables” Frontline episode. Because if there is a departure, there is fire.

The result: the stock plunged.

Today it’s deja vu again, as the news keeps on coming, this time from Reuters, which reported that BMPS could face total losses as much as $1 billion on prior derivatives trades which have only recently been discovered. The shares promptly plunged, and BMPS was halted for trading minutes before the Italian market closed:

From Reuters:

the world’s oldest bank has now said it is reviewing three loss-making structured trades related to its Italian sovereign bond holdings which only recently came to light and were negotiated by its previous management.

“Yes. The actualized shortfall is around that amount,” the bank’s chief executive Fabrizio Viola was quoted by daily newspaper Il Messaggero as saying when asked if 720 million euros was a certain loss rather than simply a maximum risk.

…

UBS said in a research note on Thursday it was including in its estimates a loss of 720 million euros on the derivative trades, pending more clarity, pushing the full-year expected loss to over 2 billion euros.

“Since the bank’s statement spoke of an analysis exclusively of three products, the worry is there could be more and that’s spooking the market,” one analyst said, asking not to be named.

Viola, who has said the three products were never submitted to the bank’s board, told Il Messaggero the management would now open every drawer in the bank for caution’s sake. “But I think we’re very close to completing the (clean-up) job,” he said.

A spokesman for main shareholder Fondazione Monte dei Paschi di Siena told Reuters it did not exclude taking legal action depending on the outcome of analyses under way.

The bank said on Wednesday that 500 million euros requested in extra state aid in November would be enough to absorb a hit on its capital from the structured trades, which were linked to its massive 24 billion-euro Italian government bond portfolio.

Naturally, the implication is that after 4 years of endless bailouts and “recovery”, nobody has any clue still just what is on Europe’s bank balance sheets. And the further implication is that if BMPS was doing it, everyone else was, of course, doing it, and much more dirty laundry is soon set to be uncovered, especially since the Italian banking business puts simple incest to shame:

The central bank also said the new management, headed by Chairman Alessandro Profumo, had produced documents that had previously been hidden.

Profumo, former CEO at Italy’s biggest bank UniCredit, took up his new role at Monte Paschi last April in place of Giuseppe Mussari while Viola took over as CEO in February from Antonio Vigni.

Mussari stepped down as head of Italy’s banking association late on Tuesday, although he has denied any wrongdoing.

“You’ll have to ask them (the old management). I can only make suppositions. And I prefer to keep them to myself,” Viola told Il Messaggero when asked why the Bank of Italy had not been informed.

On Thursday, Italy’s Treasury minister Vittorio Grilli said there was no sign that other Italian lenders could face problems similar to those at Monte Paschi.

“It’s an isolated case and I don’t see any reputational risk for other Italian banks which are much more solid than foreign banks as regards their exposure to derivative,” said Giovanni Fiori, professor of accounting and business at Rome’s LUISS Guido Carli university.

Of course there will be more “cases” – to assume this is isolated is the height of stupidity and naivete, but what else is an Italian minister to do to preserve the precarious stability attained after months of endless bluster from the ECB that Europe is “fine” -why pull a Juncker and lie of course.

But not even that is the biggest issue. Because should the BMPS dirty laundry be truly exposed for all to see, then the stench will go far. Very far. As far as Frankfurt and the ECB headquarters, because as we first explained yesterday, the person who may well be held accountable for BMPS’ endless transgressions is none other than ECB head, and former Goldmanite, and prior head of the Bank of Italy: Mario Draghi.

Recall from Yesterday:

Bank Of Italy Throws The Book At Monte Paschi For “Hiding Derivative Documents”

As we reported previously, the stock of the oldest bank in the world, Italy’s venerable Banca Monte Dei Paschi of Siena, was halted in early trade after plunging on news that the bank had engaged in not only the previously reported secret derivative transaction with Deustche Bank to hide losses before a prior government bailout, but yet another derivative transaction, this time with Nomura, signed three years ago and whose intention, ironically, was to reduce 2012 earnings by some €220 million.

What the ultimate purpose of these deals was is still unclear and will likely become apparent eventually, however it will likely require the former Chairman of the bank, Giuseppe Mussari, who served as Chair from 2006 until April 2012, and who officially quit his post as Italy’s top banking lobbyist after today’s revelations, to testify. One person whom he may testify against is none other than current ECB head Mario Draghi, who just happened to be the head of the Bank of Italy from 2006 to 2011, or the entire period when Monte Paschi was engaging in what increasingly appears to have been fraudulent activity.

But don’t worry: just like in the US, nobody of signfiicance is about to go down for this “glitch” which is about to be blamed on some poor mid-level shmuck, and which nobody in the senior level management had any idea about, and certainly not the person who ultimately would have had to give the green light: the current head of the ECB. Sure enough from Bloomberg:

  • BANK OF ITALY SAYS MONTE PASCHI HID DOCUMENTS ON TRANSACTIONS

It was all Fabrice Tourre’s fault. Or better, yet: an algo did it!

More:

  • BANK OF ITALY SAYS NEW BMPS MGMT DISCLOSED INFO ON DEALS
  • BANK OF ITALY SAYS NEW BMPS MGMT COOPERATING WITH AUTHORITIES
  • BANK OF ITALY SAYS ALSO MAGISTRATES REVIEWING TRANSACTIONS

Would it be the same magistrates who are also reviewing Berlusconi for “alleged” sex with minors?

* * *

Sure enough not even 24 hours later, Mario Monti, speaking in Davos, said something that immedately confirmed just what is at issue here:

  • ITALY’S MONTI SAYS NO OVERSIGHT FAILURE ON PASCHI

Translation, it was not the Bank of Italy’s fault, and that of its then-head, Mario Drahi, that it failed in supervising the iconic Sienna bank. Because, you see, it is all the evil management’s fault. The same “management” whose Chairman just happened to be head of the entire Italian banking lobby. Until yesterday.

And another, less politically correct translation: a (super) Goldman brother is helping another (super) Goldman brother out before the reporters figure out just what happened.

Naturally, since justice no longer exists in a Ponzi empire doomed to less than beautiful deleveraging, there will be no heads rolling over this matter besides those that already have, however one wonders: if Mario Draghi allowed such glaring unreported transactions, whose significance nobody grasped or know about at the time, and whose impact is only now being appreciated, to happen under his nose while in Italy, just what has been happening now that he is head of the biggest central bank in the world?

The other question: if and when BMPS fails, and its shareholders sue the Bank of Italy, will they also sue the man who presided over the Bank of Italy from 2006 until 2011?

And if Monte Paschi is the canary in the 2013 Italian bailout coalmine, who will be next: first in Italy, and then all over Europe?

Because once the other cockroaches, to take literary freedom with mixing and matching metaphors, are exposed – what will happen to all those sworn vows that Europe is now, finally, fixed, uttered most recently by none other than the Super Goldman Mario brothers?

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Harry: I killed Muslims to save my people

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Britain’s Prince Harry prepares his Apache helicopter prior to a training mission in the US. (File photo)

Upon returning from his five-month tour of duty in Afghanistan’s southern Helmand Province, the third in line to the British throne, Prince Harry, says he killed Muslims to protect his people.

“Take a life to save a life, that’s what we revolve around,” Harry said.

It is not clear how many people Prince Harry has killed during the Helmand tour, but he has confirmed responsibility for killings.

“If there’s people trying to do bad stuff to our guys, then we’ll take them out of the game,” he said.

Prince Harry, who served as co-pilot gunner, compared killing people from an Apache helicopter to playing video games and described his job as a “joy.”

“It’s a joy for me because I’m one of those people that loves playing PlayStation and Xbox, so with my thumbs I like to think I’m probably quite useful,” he said.

The 28-year-old prince was deployed to serve a 20-week mission with NATO forces in Afghanistan shortly after his scandalous nude pictures at a hotel in Las Vegas were published on the Internet, making headlines worldwide.

According to the website icasualties.org, a total of 3,257 US-led troops have lost their lives in Afghanistan since 2001, when the United States and its allies invaded Afghanistan as part of Washington’s so-called war on terror.

The offensive removed the Taliban from power, but insecurity continues to rise across the country, despite the presence of thousands of US-led troops.

Hundreds of foreign soldiers were killed in the war-torn country in 2012 alone.

TE/HMV/IS

Police In ‘Muslim Vigilantes’ Victim Appeal

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Officers investigating “Muslim vigilante” attacks are appealing for a victim who was abused by the gang for being “gay” to come forward.

Scotland Yard says the man is crucial to their investigation into a number of incidents where a gang calling themselves Muslim Patrol have harassed members of the public.

Videos of the attacks in east London where the self-styled gang appear to have started to operate have been posted on YouTube.

The police are appealing for the man in the footage, titled Muslim vigilantes in London harass and taunt gay male, to contact them.

In the film, the gang can been seen to abuse and intimidate the man using homophobic language, shouting: “Get out of here you f** …don’t stay around here any more.”

Investigating officers from the Community Safety Unit on Tower Hamlets borough said they are unsure where and when the video took place.

In a second video, posted online, men from the gang in Whitechapel, east London, tell another man “no drink in this area, it’s a Muslim area” before ordering him to pour away his alcohol.

Another video posted on YouTube featured a woman wearing a miniskirt being told not to “expose” herself near a mosque.

Detective Chief Inspector Wendy Morgan from Tower Hamlets borough said: “The Met takes such homophobic behaviour very seriously.

“This man is a crucial witness in the investigation and would encourage him and anyone else with information relating to this incident to make contact in confidence as soon as possible.”

Additional police patrols are being mounted across east London to reassure the public.

Two men have been arrested in connection with the investigation.

A 22-year-old man was arrested in Acton, west London on Sunday, and a 19-year-old man was arrested on Wednesday after going to an east London police station.

The pair were arrested on suspicion of causing grievous bodily harm and public order offences and were bailed to return to an east London police station in February and March pending further inquiries.

A police spokesman said: “The Metropolitan Police Service takes these incidents very seriously and is pursuing various lines of inquiry with a view to identifying and prosecuting the individuals concerned.”

Islamic leaders in east London condemned the vigilantes.

A spokesman for the East London Mosque said: “These actions are utterly unacceptable and clearly designed to stoke tensions and sow discord. We wholly condemn them.

“The East London Mosque is committed to building co-operation and harmony between all communities in this borough. The actions of this tiny minority have no place in our faith nor on our streets.

“We advise anyone who has been harassed by these individuals to contact the police.

“We will monitor the situation closely and our Imams will be speaking out against such actions.”

:: Anyone who feels they may have been a victim or witness is asked to call the incident room on 0207 275 4758, or Crimestoppers, anonymously, on 0800 555 111.

Coin or Not, Is There a Plan?

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KRU 12413 mainMit­ch McCon­nell, the Repub­lican Senat­e minor­ity leade­r, walki­ng with repor­ters in Washi­ngton­. (Photo: T.J. Kirkp­atric­k / The New York Times­)

If I’d spent the past five years living in a monastery or something, I would take the Treasury Department’s recent declaration that the trillion-dollar coin option is out as a sign that there’s some other plan ready to go. Maybe the 14th Amendment, maybe moral obligation coupons or some other form of scrip, but something.

And maybe there is a plan. But as we all know, the last debt ceiling confrontation crept up on the White House because President Obama refused to believe that Republicans would actually threaten to provoke default. Is the White House being realistic this time, or does it still rely on the sanity of crazies?

The thing is, the coin option sounds silly, but it clearly obeys the letter of the law. As far as I can tell, none of the other options – other than outright surrender – has the same virtue. Failing to pay debt service would be a breach of contract. Paying contractors, and maybe Social Security recipients, in scrip would violate the law, which says that they should be paid, not given I.O.U.’s. A decision that the president has the right to ignore the debt limit after all would avoid these legal breaches at the expense of another breach.

And default in any of these senses would risk a huge collapse of confidence. So is there a plan, or will it just be another case of tough talk followed by a tail-between-the-legs retreat?

As I said, if we didn’t have some history here I might be confident that the administration knows what it’s doing. But we do have that history, and you have to fear the worst.

Moral Obligation Coupons

Don’t like the platinum coin option? Here’s a functionally equivalent alternative: have the Treasury sell pieces of paper labeled “moral obligation coupons,” which declare the intention of the government to redeem these coupons at face value in one year.

It should be clearly stated on the coupons that the government has no – repeat no – legal obligation to pay anything at all; you see, they’re not debt, and therefore don’t count against the debt limit. But that shouldn’t keep them from having substantial market value. Consider, for example, the fact that the government has no legal responsibility for guaranteeing the debt of mortgage entities Fannie Mae and Freddie Mac; nonetheless, it is widely believed that there is an implicit guarantee (because there is!), and this is very much reflected in the price of that debt.

So the government should have no trouble raising a lot of money by selling Moral Obligation Coupons. It’s true that if they’re sold on the open market, they would probably sell at a substantial discount from face value, so this would in effect be high-interest-rate financing. But that’s better than either default or giving in to blackmail.

And maybe the coupons wouldn’t have to be sold on the open market; why not just have the Federal Reserve buy them? Bear in mind that the Fed doesn’t always buy safe assets; it’s buying a lot of mortgage-backed securities (from Fannie and Freddie; see above), and during the worst of the financial crisis it bought lots of commercial paper. So why not slightly speculative pieces of paper sold by the Treasury?

Again, while this may all seem kind of dodgy, it’s important to realize that unless the president does something like this he will be forced to do something illegal: namely, fail to spend money that, by act of Congress, he is legally obliged to spend. Fancy footwork is by far a better alternative, and if it enrages Republican Senator Mitch McConnell, well, that’s just an extra bonus.

If there is a legal problem even with selling these coupons, there are still alternatives, such as paying suppliers with these coupons and then having the Fed buy them. The mechanics really don’t matter. As long as we’re in a liquidity trap, printing money, printing conventional debt securities or printing funny money with no legal standing that nonetheless lets the government pay its bills are all equivalent.

Turks Rally Against NATO Missile Deployment Near Syrian Border

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Part of the NATO Patriot anti-missile complexes, which were requested by Ankara from the Alliance, has already arrived in Turkey. They are planned to be deployed near the border with Syria, ostensibly to protect Turkey against possible missile attacks from the Syrian side.

Anti-missile complexes will be also located in the southeastern province of Kahramanmarash. Contrary to the authorities’ assertions that Patriots will only carry out defensive tasks, locals have serious concerns about their safety.

“We strongly object to the deployment of the NATO military facilities in the territory of Turkey since this exacerbates our relations with our neighbors, which were at an excellent level only 10 years ago. We went through that in 1991, when the missiles were deployed in Incirlik. Then, too, it was asserted that they were destined exclusively for defensive purposes. However, this did not prevent full-scale and unreasonable bombings of Iraq”, Esat Shengul, head of the regional branch of the main opposition Republican People’s Party said to the Voice of Russia.

In his opinion, the deployment of Patriots is part of the American Greater Middle East project, aimed at providing free access to energy resources.

Head of the local branch of the Nationalist Movement Party Mustafa Bastirmaji agrees with Shengul. “The West is trying to cause a clash between the peoples of the region. Moreover, it tries to unleash a Sunni-Shiite war in the region. Elements of such a confrontation are already evident in Syria. Later Iran’s turn will come. And it is scary to imagine what will happen then. We do not want it”, the politician stated in an interview with the Voice of Russia.

Turkish activists rally against NATO’s Patriot deployment

Turks have rallied against the NATO deployment of Patriot missiles on the country’s soil, media report.

Some 150 leftists and right-wing activists lit smoke bombs and burned an American flag outside the port area as dozens of camouflaged German military vehicles carrying Patriot batteries were offloaded in Iskenderun.

Another rally in downtown Iskenderun later gathered thousands of anti-NATO protesters, who chanted “Yankee go home!” and “Murderer America, get out of the Middle East!”

Some protesters said the root of evil was the “collaborationist government,” and not Syria. Riot police arrested several demonstrators.

Woman injured in Empire State Building shooting sues NYPD

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New York City Police investigate a shooting in front of the Empire State Building August 24, 2012.(AFP Photo / Stan Honda)

New York City Police investigate a shooting in front of the Empire State Building August 24, 2012.(AFP Photo / Stan Honda)

The NYPD is facing a lawsuit from a woman who was injured in a police shootout outside of the Empire State Building in New York last summer. The 32-year-old was crossing the street when a stray bullet wounded her and eight other bystanders.

“I was just crossing the street,” Chenin Duclos told CBS News. “I wasn’t doing anything wrong and quickly life changed.”

Duclos, who was visiting Manhattan on Aug. 24, 2012, was caught in the middle of gunfire as New York police officers opened fire on 58-year-old Jeffrey T. Johnson, who was suspected of shooting to death his former co-worker just minutes earlier. Ricocheting debris and stray bullets struck nine nearby bystanders ranging from age 20 to 43. All of the victims were hospitalized, but only three spent the night due to their injuries.

Video surveillance of the scene shows tourists running away and hiding behind buildings when the two officers began firing 16 rounds of ammunition.

Although none of the bystanders suffered fatal injuries, the woman from North Carolina is now seeking unspecified compensation for the damage the bullet did to her hip. The 32-year-old must now undergo physical therapy at least once a week.

The lawsuit claims that the officers “failed to follow and to exercise proper police tactics and procedures” and that they “escalated the situation into a dangerous and deadly confrontation.”

Duclos said that she feels sorry for the position that the police officers were put in, but that the NYPD should have at least offered to assist her with her medical bills.

“They didn’t say, ‘if you need any help with your medical bills let us know, we will help you. We will assist you.’ None of that was done,” said Amy Marion, one of Duclos’ attorneys.

CBS News senior correspondent John Miller, a former NYPD deputy commissioner, said he understands the perspective of the police officers, who had only a few seconds to act when Johnson raised his gun at them. But because of the way Duclos’ attorney put together the lawsuit, it’s possible that she will win a settlement.

Trial attorney and legal analyst Rikki Klieman said that because the lawyers pointed out 19 separate acts of negligence on behalf of the officers, they have a good chance at winning the case. But Miller believes a trial should not come this many months after the incident, and that the city should have come up with a settlement before taking the case to court.

“I think (a settlement) should have happened in the first 90 days. When they filed their notice of the claim, the city should have stepped up and done the right thing rather than put these cops in this position,” he said.

Afghan woman killed in US-led night raid

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Afghan villagers stand near a house hit by a US-led airstrike in in Logar Province, south of Kabul. (File photo)

US-led local and international forces have killed the wife of a district council chairman in an overnight raid in Afghanistan’s eastern province of Kapisa.

The woman was killed on Wednesday night after officials received a tip-off that militants were hiding in the house of Anar Joy District Council Chairman, Mohammad Na’im.

Officials claim the forces launched the raid after militants opened fire on them from Na’im’s house, but there were no reports of militants being present after the operation.

Civilian casualties inflicted by US-led troops have increased anti-US sentiments in the country.

The deaths have been the main source of friction between Kabul and Washington over the past years.

The United States and its allies invaded Afghanistan in 2001 as part of Washington’s so-called war on terror. The offensive removed the Taliban from power, but insecurity continues to rise across the country.

TE/HMV

Will you pay $2,000 to have a kid read 12 books of your selection?

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Summer will arrive, and students may have a more difficult time finding a part-time job than in years past. Is there a teenager, maybe even your own child, for which you care for and want to do something to help him or her find a way to make some money this summer? Do you fear the teen is going to spend the entire summer watching youtube videos of bad lip reading, smoking incense, and virtually killing people on XBox? Are you willing to spend as much as $2,000 to try to make the world an incrementally better place, and definitely give the teenager a leg-up in life? 

If your answer is yes to these questions, then consider joining me in hedgeless_horseman’s Sad Attempt To Keep Unemployed Teens Out of Trouble By Paying The Lazy Punks To Read Something Potentially Worthwhile Summer Scholarship Program. 

Here is how it works. First, make a list of a dozen books that you believe are worthwhile for teenagers. Below, is my current list, along with brief explanations of why I believe each book is worthwhile for teenagers. 

Second, purchase all of the books to give away. If you want a copy of a book for yourself, then buy an extra. These books are to get the kid started with a library of his or her own. Get real books made out of paper.

Third, place a reward value on each book indicating what you are willing to pay the kid to read it. I do understand this is very co-dependent, sick, sad, and wrong on many levels, but I have decided that I don’t really care. Longer and more technical books get a higher reward in my system. However, having a higher reward for the books one feels are most important might also work. In my experience, the total value of all the rewards is a more important number in the eyes of the kid than the value on any one book. They want to know, “what is the value of the entire summer scholarship?” 

Fourth, write a short and simple contract for the entire scholarship that includes the list of books and clearly explains the timeframe, rewards, and the fact that the teenager only receives pay after completing a book, holding a lengthy and detailed discussion with you about the book, and possibly passing an oral or written examination. 

Finally, present the contract to the teenager for consideration, but do not sell the idea, or negotiate in any way. If he or she decides to pass on the offer, which is okay, then thank him or her for the consideration, and look for another teenager to repeat the proposal.

Abraham: A Journey to the Heart of Three Faiths, P.S. Edition
Bruce Feiler, $   10.39 
In today’s world where all sides try to dehumanize the enemy, we should understand that Jews, Christians, and Muslims pray to the same God. 
Reward: $       50.00

Beyond the Yellow Brick Road: Revised
Bob Meehan, $   20.00
All teenagers are going to be exposed to drugs, most are going to try drugs, many will become addicted, some will want help for themselves or others. This book can help.
Reward: $       50.00

Born to Run: A Hidden Tribe, Superathletes, and the Greatest Race the World Has Never Seen
Christopher McDougall, $   10.85
Inspirational, entertaining, and gives the reader all he or she needs to become, and stay, physically fit.
Reward: $       50.00

Emotional Intelligence: Why It Can Matter More Than IQ, 10th Anniversary Edition
Daniel Goleman, $   16.29
In a world where teens must interact with others, it is immensely helpful to have read an Operations Manual for our psyches.
Reward:  $    250.00

Excel 2010 For Dummies, 2010
Greg Harvey, $   13.70
Understanding Excel is a foundation skill of many 21st Century jobs, appears on most resumes, but actually resides in very few brains.
Reward: $    150.00

Graham and Dodd’s Security Analysis, Fifth Edition
Sidney Cottle, et al, $   10.00
This one book can put every reader, even a teenager, light years ahead of many, if not most, Wall Street professionals.
Reward:  $    350.00

The Creature from Jekyll Island: A Second Look at the Federal Reserve, 5th Edition 
G Edward Griffin, $   24.50
Griffin explains money, banks, and some important history. A must read for everyone in America today.
Reward: $    200.00

The Double Helix, Annotated and Illustrated 50th Anniv.
James D Watson, $   17.43
Every kid will gain from this glimpse into real science and the process of discovery.
Reward:  $       50.00

The Elements of Style, 4th Edition
William Strunk, et al, $     8.26 
The book that started me on this sad attempt. We can all improve our writing.
Reward: $       50.00

The Encyclopedia of Country Living, 40th Anniversary Edition
Carla Emery, $   19.77
Especially if one does not live on a farm, it is a good thing to know the how, when, what, and where of providing for ourselves.
Reward: $    175.00

The Killer Angels: A Novel of the Civil War 
Michael Shaara, $   16.32
An unforgettable illustration of war, and the things we are capable of doing to one another.
Reward: $    100.00

The Way to Cook
Julia Child, $   26.00
The most aptly titled book on this list. Huge benefits may be reaped from a teenager reading it before moving away from home.
Reward: $    150.00

That is $ 193 in books and $ 1,625 in incentives, for a total investment of less than $2,000. Should I pay to cause my children to read these 12 books? That is up for discussion in the Zero Hedge comments, below. Will I pay? Yes. Absolutely, I will pay. 

Will you pay a kid to read 12 books of your selection?

Your rating: None

What Will Happen in Palestine Friday Morning?

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Last Friday, Palestinian peace activists created the village of Bab al-Karama on the lands of Beit Iksa village to prevent their confiscation by the Netanyahu government.

The previous Friday, Palestinian peace activists created the village of Bab al-Shams near the village of Al Zaim to block the confiscation of Palestinian land by the Netanyahu government.

What do you think is going to happen in Palestine this Friday?

Economists like to say that the only thing that you can’t predict is the future. But I think that the odds are very good that on Friday, a new Palestinian village is going to be established to block the confiscation of Palestinian land by the Netanyahu government.

If that happens, will American media report it?

If a tree falls in the forest, does it make a sound?

To be effective, a strategy of nonviolent resistance to injustice requires an audience.

Sometimes Western pundits have asked: Where are the Palestinian Gandhis? But when Palestinians have engaged in nonviolent protest and have been suppressed by Israeli occupation forces, Western pundits have been largely silent. The pundits’ words communicate one thing; the choice by Western media to largely ignore nonviolent Palestinian protest movements communicates the opposite.

Thanks to movies like Budrus and 5 Broken Cameras, the story of nonviolent Palestinian resistance to land confiscation is reaching a new group of Americans. That’s a fantastic development. But when civil rights marchers in Selma were beaten on the Edmund Pettus Bridge on Bloody Sunday, Americans didn’t have to wait for a movie to find out about it. It was big news right away.

Could Americans force the story of Palestinian nonviolent resistance to land confiscation onto the agenda of mainstream US media?

There is a precedent that may be relevant. When Occupy Wall Street began, it was ignored at first by mainstream media. To find out what was going on, you had to go to social media like Twitter. When the story became well-established in social media, mainstream media had to take notice.

What if we raised an army of thousands of Americans who pledged themselves in advance to one simple task: When the news breaks of a new Palestinian village established to block land confiscation by the Netanyahu government, members of this army agree that they are going to be notified, and then they are going to spread this news on social media.

Thousands of Americans have already signed our pledge. You can join them here.

Two most wanted Chechen militants killed in counterterrorist operation

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Muslim Gakayev. (Screenshot from YouTube user Chechenci19)

Muslim Gakayev. (Screenshot from YouTube user Chechenci19)

Two men, wanted for at least 5 terrorist acts, have been killed in a special forces operation in Chechnya. The Gakayev brothers were deemed more dangerous than militant Doku Umarov, by Chechen leader, Ramzan Kadyrov.

The two brothers, Khuseyn and Muslim Gakayev, are said to be responsible for the deaths of many law enforcers and civilians and were on Russia’s wanted list for 11 years. The pair were killed during an operation on Thursday in the Vedeno district, one of the regions hardest hit by fighting in the area.

“Two Gakayev brothers, were on the federal wanted list for involvement in the terrorist acts and the murders of law enforcers and civilian” the press center of the Russian Interior Ministry told the media.

Ramzan Kadyrov, President of the Russian Republic of Chechnya, noted that the two men were more dangerous than terrorist at large Doku Umarov. Umarov has been linked to a spate of deadly terrorist attacks targeting Russian civilians.

“Umarov is nobody special. The dead Muslim and Hussein Gakayev commanded gangs from the first days of the counterterrorist operation. They are responsible for dozens of innocently slain policemen, military servicemen, teachers, directors of enterprises, and religious figures,” Kadyrov said.

Two police officers died and six were injured in the two-day operation that also left 11 Chechen militants dead.

The Gakayev brothers made several high-profile attacks, most recently a suicide bomb attack on an interior ministry vehicle that killed four last August. They were also blamed for an attack on the Chechen parliament in 2010 that killed at least six people, and an assassination attempt at the residence of Chechen leader Ramzan Kadyrov. After this, Kadyrov announced a reward for information on their activities.

Khuseyn and Muslim Gakayev’s four other brothers were all killed during fighting that raged in Chechnya between the mid 1990s and early 2000s

S&P 500 Futures Suffer Biggest Down Swing Of 2013

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From the highs this morning as European markets closed, S&P 500 futures have plunged 11.5 points. Doesn’t sound like much – but this is in fact the largest intraday swing of 2013…Keep calm and BTFD.

Click image for much larger version…

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Like Houdini, Republicans Make The Debt Ceiling Disappear

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Now you see it—now you don’t. Poof! I didn’t know Republicans have been studying the art of magic and illusion.

Steve Benen:

Last week, House Republicans caved on the debt-ceiling fight, at least in the short term, announcing they would approve a “three-month temporary debt-limit increase.” Over the holiday weekend, the GOP plan apparently got a little touch-up.

Forget about raising the federal debt limit. House Republicans are proposing to ignore it altogether — at least until May 18.The House plans to vote Wednesday on a measure that would leave the $16.4 trillion debt limit intact but suspend it from the time the bill passes until mid-May. The declaration that the debt ceiling “shall not apply” means that the government could continue borrowing to cover its obligations to creditors until May 18.This approach — novel in modern times — would let Republicans avoid a potentially disastrous fight over the debt limit without actually voting to let the Treasury borrow more money.

This is rather unexpected. Just a few days ago, House Majority Leader Eric Cantor (R-Va.) announced plans for a three-month increase. Now, it’s four months, and it’s a suspension, not an increase.

What does that mean, exactly? Lawmakers are effectively declaring, “The debt ceiling won’t exist until mid-May.” In other words, Congress authorizes federal spending and the administration acts accordingly, but instead of needing congressional approval to borrow the difference, the White House will be able to just borrow as necessary — without authorization — for nearly four months without regard for legal limits.

Right-wing lawmakers will probably balk — they weren’t going to endorse the original plan, either — but the Club for Growth said Tuesday that it will not oppose the temporary suspension of the borrowing limit. After all, Republicans aren’t technically raising the debt ceiling; they’re just suspending it. Of course, this raises a related question: can’t Congress just make this permanent? Shouldn’t lawmakers do exactly that?

Yes they should, and please, let’s drop the idea that Republicans care about the deficit. They are using the debt ceiling to push an agenda which could backfire on the country and severely f*&k us all. If they can suspend it or make it disappear any time they want, then what is this whole circle jerk about in the first place? I’d much prefer to watch Tony Curtis and Janet Leigh in Houdini than this freak show.

UPDATE: Debt Ceiling fantasy passed

The House just passed the GOP’s plan for a temporary debt limit extension, 285-144. The threat of default has been averted – in exchange for no concessions whatsoever by Dems. This confirms what some of us knew from the start: Republicans were never – ever – going to allow default. Those who played along with the fantasy that the threat of default gave Republicans leverage got snookered. They got taken.

Today’s vote, in effect, removes the threat of default from the conversation permanently, which is good news for the country. There is very little chance that the coming battle won’t be resolved before the next debt limit deadline of May 18th. In any case, if Republicans try to tie any more conditions to the next debt limit hike, Dems will simply laugh in their faces, since they confirmed today that they are not willing to allow default, no matter what. So now the GOP will try to use the expiring sequester and the threat of a government shutdown to extract the spending cuts it says it wants.

NATO in Syria: The Cost of a “New Libya”

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See video

Libya: Race, Empire, and the Invention of Humanitarian Emergency

Posted on 10/24/12

See video

Make No Mistake: NATO committed War Crimes in Libya

Posted on 08/12/11

See video

“Humanitarian” Wars: Libya, Syria… Algeria?

Posted on 09/15/11

See video

Chossudovsky: “Humanitarian” Wars Against Libya and Syria

Posted on 05/4/11

Assault weapons ban introduced in the Senate

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Senator Dianne Feinstein ,D-CA,walks from the lectern after speaking at a press conference on Capitol Hill January 24, 2013.(AFP PHOTO / Brendan Smialowski)

Senator Dianne Feinstein ,D-CA,walks from the lectern after speaking at a press conference on Capitol Hill January 24, 2013.(AFP PHOTO / Brendan Smialowski)

Sen. Dianne Feinstein (D-Calif.) on Thursday introduced a bill banning assault weapons and high-capacity ammunition clips, briefing members of Congress in front of a display featuring various deadly firearms that would be prohibited under the ban.

“Together we are introducing legislation to help end the mass shootings that have devastated countless families and terrorized communities,” Feinstein said in her opening remarks at a briefing on Capitol Hill.

The senator invited police officers, shooting victims and legislators to emphasize the need for her measure, which would resurrect a federal ban on assault weapons and more narrowly define them. As the speakers testified, they stood beside a large display of 10 different types of assault weapons, which are illegal in Washington, DC. Feinstein was required to get special permission to bring the deadly weapons into the US Capitol.

Combined with testimonies about gun violence and lost lives, Feinstein introduced her proposal. The new legislation would ban 158 specifically named firearms, as well as certain semiautomatic rifles, handguns and shotguns that take a detachable magazine. It would also limit magazines to nine rounds of ammunition.

The measure would not affect owners who already possess such weapons and would not affect the sale of hunting, sporting, antique, manually operated and disabled weapons. But US residents who want to transfer their assault weapons to another person would not be able to legally do so unless the new owner commits to a background check.

“The purpose is to dry up the supply of these weapons over time, therefore there is no sunset on this bill,” Feinstein said. The bill protects 2,200 specifically named hunting or sporting rifles, keeping them exempt from the rules of the legislation. The 1994 Assault Weapons Ban only protected 375 such weapons, which would cause US gun owners to have more options under the current proposal.

“This bill will be a signature moment in providing a profoundly significant step in the legislative strategy,” said Sen. Richard Blumenthal (D-Conn.), who joined forces with Feinstein in drafting the legislation. “But it is only a first step and we need to build on it with a comprehensive program” that includes expanded background checks and greater mental health care initiatives.

 Senator Dianne Feinstein(R) ,D-CA, arrives for a press conference on Capitol Hill January 24, 2013 in Washington, DC. House and Senate Democrats where joined by law enforcement officials to introduce the "Assault Weapons Ban of 2013" legislation to ban assault style weapons and high capacity magazines.(AFP PHOTO / Brendan Smialowski)
Senator Dianne Feinstein(R) ,D-CA, arrives for a press conference on Capitol Hill January 24, 2013 in Washington, DC. House and Senate Democrats where joined by law enforcement officials to introduce the “Assault Weapons Ban of 2013” legislation to ban assault style weapons and high capacity magazines.(AFP PHOTO / Brendan Smialowski)

The bill is likely to face harsh opposition from GOP lawmakers who have already pledged to oppose any new gun control regulations.

But an assault weapons ban has existed before, which gives the senator hope that it can exist again. Her proposal resembles a version of the assault-weapons ban that expired in 2004. Feinstein authored the 1994 Assault Weapons Ban and has long pushed for bringing it back after it expired, but has faced immense opposition from congressional Republicans, many of whom believe the bill would diminish the Second Amendment right to own firearms. 

The senator has been drafting this bill ever since the December massacre at Sandy Hook Elementary School left 26 people dead, 20 of which were children. Feinstein’s legislation is aimed to prevent another such shooting by keeping guns out of the hands of the mentally ill and by limiting the sales of military-style assault weapons that can quickly massacre dozens of people. The US was host to 15 mass shootings in the year 2012, including the massacre of 12 people in a movie theater in Aurora, Colo., and the massacre of six people in a Sikh temple in Oak Creek, Wis.

“I have worked on this for a long time,” Feinstein said in a USA Today interview. “I’m not a newcomer or a novice to guns.”

After family members of shooting victims displayed photographs of the loved ones they lost, Feinstein wrapped up the briefing with a strong urge to take action.

“Guns designed military use [are] bought all over this country and often used for mass murder. This is really an uphill road. If anyone asked today, ‘Can you win this?’ The answer is, ‘we don’t know,” Feinstein said.

“But only if you stand up, if America rises up, if people care enough to call every member of the House and every member of the Senate and say ‘we have had enough’” can this legislation be enacted, she added.

Feinstein to introduce the bill today in the Senate.

British Nationals Urged To Leave Benghazi

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The Foreign Office has urged Britons to leave the Libyan city of Benghazi in response to a “specific and imminent threat” against Westerners.

The FCO has been advising against travel to most of the country since last September, but has now stepped up its warning.

A spokesman said: “We are now aware of a specific and imminent threat to Westerners in Benghazi, and urge any British nationals who remain there against our advice to leave immediately.

“We have updated our travel advice to reflect this. The British Embassy in Tripoli has been in contact with British nationals for whom we have contact details to alert them to the advice.”

Sky News foreign affairs editor Tim Marshall said: “As I understand it there are somewhere between one and two dozen Britons in Benghazi.

“This is not to do with the oil fields. This is to do with the city of Benghazi and its immediate surroundings itself.

“I believe all of the Britons have been told of this credible threat to them. Benghazi airport is working, so they have a choice to go or not.”

Libya has responded to the FCO’s warning, saying the call for Britons to leave Libya’s second city was not justified.

“Nothing justifies this reaction,” Libya’s Deputy Interior Minister Abdullah Massoud said.

“There are question marks about this communique,” he added.

The threat against Westerners comes one day after US Secretary of State Hillary Clinton responded fiercely to a review of security at US diplomatic missions.

The review followed an attack on the US mission in Benghazi in September last year which killed Ambassador Chris Stevens and three other Americans.

In her last formal congressional testimony on Capitol Hill as America’s top diplomat, Mrs Clinton took full responsibility for the department’s mistakes leading up to the attack.

“Nobody is more committed to getting this right. I am determined to leave the State Department and our country safer, stronger, and more secure,” she said.

Police clash with protesters in Cairo

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File photo shows protesters demonstrating against President Mohamed Morsi in Cairo’s landmark Liberation Square.

Police have clashed with protesters in the Egyptian capital of Cairo on the eve of the second anniversary of the uprising that overthrew former dictator Hosni Mubarak.

The clashes intensified when a dozen of protesters tried to dismantle a security barrier blocking the city’s Qasr El-Aini Street to the Liberation Square – the focal point of demonstrations two years ago.

Protesters hurled rocks at riot police and shouted slogans against President Mohamed Morsi, calling for his resignation.

On January 18, Egyptian opposition groups called for mass street protests against Morsi and the country’s Muslim Brotherhood party. Morsi supporters also planned rallies to mark the anniversary.

Morsi assumed office on June 30, 2012, following a revolution that toppled Mubarak.

The African country, however, has been the scene of mass protests and demonstrations against the president after he issued a controversial decree in November 2012, permitting him to “issue any decision or law that is final and not subject to appeal.”

TE/HMV/SS

The Ban List: AR-15, AK-47, AR-10, Saiga12, Bushmaster, Ruger, Beretta, HK, Smith & Wesson, Sig…

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Mac Slavo
January 24th, 2013
SHTFplan.com

Read by 23,177 people

When rumors emerged about coming assault ban legislation just one day after the re-election of Barack Obama, many scoffed at the notion that the reports were real. As we now know, they were very real, and today the Assault Weapons Ban of 2013, aimed at disarming Americans, has been introduced in Congress.

The list is a veritable who’s who of premier semi-automatic assault rifles that are owned by millions of Americans and include 2nd Amendment staples like the popular AR-15 and AK-47.

In addition to the some 150 semi-automatic rifles, handguns and shotguns on the list, the bill aims to reduce magazine capacities nationwide to 10 rounds or less.

While the new legislation would not force Americans to turn in guns they own that are on the ban list, it would require registration in a national database, which includes a background check even if you already own the gun.

Owners of banned firearms would also need to submit photo identification and a fingerprint for the national registry.

Here is the ban list as it stands now:

Weapons Ban List

(Click for larger image)

Dianne Feinstein explains why you only need 10 rounds to defend yourself (Jan 23, 2013):

The Feinstein show (Jan 24, 2013):

*Related: The Resistance Begins: New York Gun Owners Refuse to Register

Author: Mac Slavo
Views: Read by 23,177 people
Date: January 24th, 2013
Website: www.SHTFplan.com

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.

The 7 Best Right-Wing Freakouts Over Women Going Into Combat

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Yesterday, the Pentagon announced it would lift a ban on women in combat. Today, conservatives lost their minds

January 24, 2013  |  

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It’s been less than 24 hours since the Pentagon announced they would remove the longstanding military ban on women in combat, and our friends on the Right wasted no time in going off the rails crazy about it. Apparently, lifting the ban on women in combat is the worst thing that’s ever happened to the military. (At least since the last worst thing that’s ever happened to the military.)

A round up featuring the very best of the very worst.

Heather Mac Donald of the National Review

The Pentagon must think we are done fighting “real wars.” Why else would they let women play army?

We have apparently arrived at the Golden Age, free from strife and the threat of foreign enemies. Little else can explain so gratuitous a decision as to place women in combat units.

And there will be so much military sex happening! (As we know, things are uncomfortable enough with the gays hanging around.)

Only someone deliberately blind to human reality could maintain that putting men and women in close quarters 24 hours a day will not produce a proliferation of sex, thus introducing all the irrational passions (and resulting favoritism) of physical attraction into an organization that should be exclusively devoted to the mission of combat preparedness.

Oh, and it’s women’s fault if they get sexually assaulted or raped while serving their country. (Also, sexism in the military is a myth invented by feminists.)

Reported “sexual assaults” will skyrocket, and of course it will only be the men who are at fault. Any consensual behavior leading up to the “assault” – getting in bed with your fellow grunt drunk and taking off your clothes, for example – will be ignored, since in the realm of sexual responsibility, women remain perpetual victims, at the mercy of all-powerful men. Expect a windfall to the gender-sensitivity-training industry, which will be called in both before and after the entry of women into combat units to eradicate endemic male sexism.

Kathryn Jean Lopez of the National Review 

Lopez thought her co-workers were pranking her. No, really:

I thought it was a joke. Dan actually e-mailed it to me and I thought: Very funny. 

But she doesn’t mean any disrespect!

I write this in all gratitude for women who have served.

Bryan Fischer of Renew America 

It’s a really, really bad idea that also defies God’s will:

God simply did not design women to have the same size, upper body strength, or stamina as men. It’s just plain stupid to ignore this biological fact of nature.

And “Muslims hate women.” And we “only fight Muslims,” so you do the math:

Muslims hate infidels in general, and despise women in particular, even their own… How will the flower of our nation’s womanhood fare in the hands of savages like these?

Ryan Smith of the Wall Street Journal, a former Marine Infantryman 

Peeing in front of women will humiliate men. Why does Leon Panetta want to humiliate men?

Societal norms are a reality, and their maintenance is important to most members of a society. It is humiliating enough to relieve yourself in front of your male comrades; one can only imagine the humiliation of being forced to relieve yourself in front of the opposite sex.

And men’s humiliation will humiliate women:

In the reverse, it would be painful to witness a member of the opposite sex in such an uncomfortable and awkward position.

Oh, and unit cohesion, which apparently still exists even though it was supposed to go extinct the moment gays started serving openly:

Several militants killed in Syria clashes

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An injured militant is carried away in Syria’s northwestern city of Aleppo. (File photo)

Syrian forces have killed a number of militants in fresh clashes as the army continues operations across the crisis-hit country to drive out foreign-backed armed groups.

Syrian government soldiers clashed with militants in the northwestern city of Aleppo as anti-government forces set fire to a gas station in Aleppo’s suburbs.

They also attempted to storm the airport in the city but were confronted by army troops and were forced to flee with a number of casualties.

Elsewhere, clashes broke out on the outskirts of the capital, Damascus, and the western city of Hama.

The army also diffused several explosive devices planted on a road near the western city of Homs.

Meanwhile, the Syrian state TV aired pictures of Syrian President Bashar al-Assad who attended mass prayers at a mosque in Damascus to mark the birthday of Islam’s Prophet Mohammad (PBUH).

MRS/HMV/SS

‘Foodopoly:’ Exposing the Handful of Corporations That Control Our Food System From Seed to Dinner Plate

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Wenonah Hauter’s new book, “Foodopoly,” delves deep into the history of the food system and how we can fix it.

January 24, 2013  |  

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The following is an excerpt from Foodopoly: The Battle Over the Future of Food and Farming in America, published by The New Press and reprinted here with permission. Copyright © 2012 by Wenonah Hauter. 

In 1963 my dad bought a ramshackle farm with rich but extremely rocky soil in the rural Bull Run Mountains of Virginia, forty miles southwest of Washington, D.C. Today it is on the verge of suburbia.

He grew up in Oklahoma during the Dust Bowl, rode the rails, and eventually, in his late fifties, found his way “back to the land.” So we moved to what was then a very rural landscape — a place culturally a world away from the nation’s capital and physically linked only indirectly by two-lane roads. Our old farmhouse, with a mile-long rutted driveway accessible only by fourwheel drive, was off another dirt road and had no electricity or plumbing. Eventually my dad did manage to get the local rural electricity co-op to put in poles and hook up power, but he never did get around to installing indoor plumbing.

He was an unusual man — a religious iconoclast and an organic gardener at a time when few people knew the term. He was considered a crank and a hobby farmer, if you can call it that, growing a few vegetables and keeping bees. His wild-blossom honey was the only vaguely successful part of his farming venture. My dad, who died in 1991 at the age of eighty-one, would be shocked now to see both his farm and the massive development around it. 

Today the hundred acres of mostly wooded land is bordered by a megamansion subdivision on one side and an expensive “gated community” a mile away as the crow flies. Thousands of town houses and new subdivisions have cropped up where once there were fields dotted with cows. This has brought on the box stores, including Walmart and fast food joints-blights on the once bucolic rural landscape. A major highway, I-66, recently engineered to be either six or eight lanes depending on the location, means we can zip into the nation’s capital during the rare times that commuters are not clogging the road.

Since 1997, my husband has run the farm as a community-supported agriculture (CSA) program, feeding five hundred families each season with subscription vegetables grown using organic practices. It’s a successful family business that suits my activist husband, who taught high school and college and worked for public interest organizations, but who really prefers the challenge of farming without chemicals. It works financially, because we own the land outright, and because we live near a major metropolitan area where urban and suburban residents are seeking greater authenticity in the food they eat. They want their children to see where food comes from and to learn that chickens enjoy living together in a pasture. We often joke that for most people the CSA is more about having a farm to visit than the vegetables.

As a healthy-food advocate, I feel privileged to have grown up a rural person and to have had the real-life experience of pulling weeds, squishing potato bugs, canning vegetables, gutting a chicken, baking bread, and chopping wood for the cookstove. As a teenager I felt deprived, but as an adult I am grateful to know where food comes from and how much work it takes to produce it. My family is also extremely lucky that my dad bought almost worthless land in the 1960s that today is located near a major metropolitan area populated by a largely affluent and educated population. But most farmers, or people aspiring to be farmers, aren’t so lucky. Fortunately, farmers’ markets and similar venues help capture the excitement and nostalgia for farming, and for a simpler and healthier lifestyle, and they are delightful for the customers and can be profitable for farmers.

Insurers To White House: Delay ObamaCare Or Risk “Chaos”

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With eight months left until million of Americans are supposed to begin shopping at online markets created by the Obamacare ‘tax’ law, the insurance industry is concerned at the government’s lack of readiness. Bloomberg reports that Jim Donelon, the head of the National Association of Insurance Commissioners, suggested that President Obama may need to delay the implementation of the health-care overhaul or “risk chaos” when the subsidized plans go on sale later this year. While it is clear that the administration has shown no sign of seeking a delay, Donelon notes that “…to rush into implementation before it’s ready would not be in the President’s best interest.”

Via Bloomberg:

President Barack Obama may need to delay his health-care overhaul or risk “chaos” when subsidized insurance plans go on sale in October, the head of the National Association of Insurance Commissioners said.

It’s unclear how well the federal government or any of the participating states will perform on Oct. 1, when millions of Americans are supposed to begin shopping at online markets created by the law, Jim Donelon, the NAIC’s president, said in an interview at Bloomberg headquarters in New York. While the administration has shown no sign of seeking a delay, it may be in the president’s best interest, he said.

“It’s his calling-card, signature issue and to rush it into implementation before it’s ready would not be in his overall interest,” said Donelon, a Republican who’s also Louisiana’s insurance commissioner. State officials around the U.S. “don’t want it to create chaos.”

The Obama administration and 18 states are preparing to establish the insurance markets, a centerpiece of the 2010 law designed to extend coverage to millions of uninsured people. The association, which represents state regulators, today named former Democratic Senator Ben Nelson of Nebraska as its chief executive officer, in an attempt to expand its influence in Washington.

“We needed the gravitas, the phone calls returned, to go to Capitol Hill, to tell our story, defend our turf, and beyond, protect and promote our system around the world,” Donelon said. “I think all the way up to and including President Obama would return Senator Nelson’s phone calls.”

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Crazy — Republican Lawmaker Wants to Jail Rape Victims for Ending Pregnancies

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A New Mexico lawmaker has proposed that the fetus is evidence and terminating it could cost women three years in jail.

January 24, 2013  |  

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Apparently it took a female Republican to come up with the most vicious way to punish women who had the audacity to get themselves raped.

Wednesday, state representative Cathrynn Brown of New Mexico introduced a bill whose sheer audacity makes Todd Akins look as harmless as an ill-informed teenager groping his way through puberty.

The proposed legislation, House Bill 206, would make it illegal for a woman to have an abortion after being raped because the fetus is evidence of the crime. A women who does choose to have an abortion would be charged with the third-degree felony of “tampering with evidence,” which carries up to a three year prison sentence in New Mexico.

As the bill states:

“Tampering with evidence shall include procuring or facilitating an abortion, or compelling or coercing another to obtain an abortion, of a fetus that is the result of criminal sexual penetration or incest with the intent to destroy evidence of the crime.

In other words, Brown just said to rape victims: give birth to this baby or you’ll go to jail.

Besides being the sheer definition of cruel and unusual punishment, the proposed legislation highlights the hypocrisy in prosecuting rape and sexual assault in the United States.

Brown said in a statement that the legislation is intended to strengthen prosecution against rapists and prevent them from pressuring women who they have violently impregnated to have an abortion.

“New Mexico needs to strengthen its laws to deter sex offenders,” said Brown. “By adding this law in New Mexico, we can help to protect women across our state.”

Yet, the reality is that men are almost never investigated, prosecuted and convicted of rape, and that this law will instead criminalize women who have been the victim of men’s crimes.

According to RAINN (Rape, Abuse and Incest National Network), only three percent of rapes end with the rapist serving a criminal conviction. (Because rape is one of the most undercounted crime, this analysis factors in unreported rapes.) 

The other 97 percent of all rapists never spend a night in jail.

This low accountability rate is far from a problem of scant evidence at trial. According to RAINN, only 12 percent of rapes even lead to an arrest, signifying that increasing reporting rates and requiring police investigations are the main law enforcement changes necessary to “protect women across the state.”

The idea that the overwhelming majority of rapists are never prosecuted or convicted but that their victims could instead be subjected to three years in jail is literally insane. The bill is unlikely to pass given the Democratic majority in the state’s legislature. But the legislation still begs the question: Dear Republicans, what the fuck will you come up with next?

Laura Gottesdiener is a freelance journalist and activist in New York City.

Guest Post: The Tangled Relationship Between Wealth & Money

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Submitted by John Michael Greer of Peak Prosperity,

One of the most dangerous mistakes possible to make in trying to understand the shape of the economic future is to think of the fundamental concepts of economics as simple and uncontroversial. They aren’t. 

In economics, as in all other fields, the fundamentals are where disguised ideologies and unexamined presuppositions are most likely to hide out, precisely because nobody questions them.

In this and future essays here at Peak Prosperity, I will explore a number of things that seem, at first glance, very obvious and basic. I hope you’ll bear with me, as there are lessons of crucial and deeply practical importance to anyone facing the challenging years ahead.

This is, above all, true of the first thing I want to talk about: the tangled relationship between wealth and money.

Our co-host here, Chris Martenson, likes to remind us all that money is not wealth, but a claim on wealth. He’s quite right, and it’s important to understand why.

Money is a system of abstract tokens that complex societies use to manage the distribution of goods and services, and that’s all it is. Money can consist of lumps of precious metal, pieces of paper decorated with the faces of dead politicians, digits in computer memory, or any number of other things, up to and including the sheer make-believe that underlies derivatives and the like. Important differences separate these various forms of money, depending on the ease or lack of same with which they can be manufactured, but everything that counts as money has one thing in common — it has only one of the two kinds of economic value.

The Two Kinds of Value

Economists call those use value and exchange value.

You already know about them, even if you don’t know the names. Odds are, in fact, that you learned about them back in elementary school the first time that one of your classmates offered to trade you something for the cookies in your lunchbox. You then had to choose between trading the cookies for whatever your classmate offered and eating them yourself. The first of those choices treated the cookies primarily as a bearer of exchange value; the second treated them primarily as a bearer of use value.

All forms of real wealth — that is, all nonfinancial goods and services — have use value as well as exchange value. They can be exchanged for other goods and services, financial or otherwise, but they also provide some direct benefit to the person who is able to obtain them. All forms of money, by contrast, have exchange value but no use value. You can’t do a thing with them except trade them for something that has use value (or for some other kind of money that can be traded for things with use value).

Most people realize this. Or, more precisely, most people think that they realize this.

It’s still embarrassingly common for people to forget that money isn’t true wealth, and to assume that as long as they have some sufficiently large quantity of some kind of money that’s likely to hold its exchange value over time, they’ll never want for wealth. This assumption is understandably made, because in the relatively recent past, this has been true a good deal more often than not, which feeds the belief that it will always be true in the future. 

But that assumption is lethally flawed, and it’s important to understand why.

The Economic Relationship between Money and Wealth

For the last three hundred years, as industrial society emerged from older socioeconomic forms and became adept at finding ways to use the immense economic windfall provided by fossil fuel energy, there have been two principal brakes on economic growth.

The first has been the rate at which new technologies have been developed to produce goods and services using energy derived from fossil fuels. The Industrial Revolution didn’t get started in the first place until inventors and entrepreneurs found ways to put the first generation of steam engines to work making goods and providing services. At every step along the road from that tentative beginning to today’s extravagantly fueled high-tech societies, the rate of economic growth has been largely a function of the rate at which new inventions have appeared and linked up with the business models that were needed to integrate them into the productive economy. That’s the source of the innovation-centered strategy that leads most industrial societies to fund basic and applied research as lavishly as they can afford.

The second major brake on economic growth is the relationship between the economy of goods and services, on the one hand, and the economy of money on the other. Just as wealth and money are not the same, as we’ve seen, the economic processes that center on them are not the same. The printing and circulation of money is not the same thing as the production and distribution of nonfinancial goods and services, and ignoring the difference between them confuses much more than it reveals. In my book The Wealth of Nature, I called the economy of goods and services the ‘secondary economy,’ and the economy of money the ‘tertiary economy,’ with nature itself — the ultimate source of all wealth — as the ‘primary economy.’ For the purposes of this essay and those to come, though, we’ll use simpler labels and call them the ‘wealth economy’ and the ‘money economy’.

During this three-hundred-year timespan, when the money economy stayed in sync with the wealth economy, economic growth normally followed. When the two economies got out of sync, on the other hand, growth normally faltered or went into reverse. There were (and are) two ways that the money supply can slip out of its proper relationship with the wealth economy. 

The first occurs when growth in the money supply outstrips growth in the production of real wealth, so that the more money is available to compete for any given good or service, and prices normally go up. That’s inflation.

The second occurs when growth in the money supply fails to keep up with growth in the production of real wealth, so that less money is available to purchase any given good or service, and prices normally go down. That’s deflation. 

Fighting to Keep the Economies in Sync

In either case, the imbalance hinders the ability of the wealth economy to keep producing goods and services, mostly by throwing a monkey wrench into the machinery of investment – the process by which the money economy allots extra wealth to the producers of wealth to assist them in expanding their ability to create real, nonfinancial goods and services. Whether it’s inflation or deflation that chucks the wrench into the gears, the result is flagging or negative growth.

It’s the hope of keeping inflation and deflation in check that motivates the obsessive tinkering with economics on the part of so many of the world’s governments these days. However poorly that tinkering works out in practice (and it usually works out very poorly, indeed) the politicians can at least claim to citizens that they’re doing something to get economic growth back on track.

Most economists, and for that matter most people who consider economic issues, think and act as though these two factors – the rate of innovation and the money economy’s habit of getting out of sync with the underlying economy of real wealth – are still the only factors that can get in the way of growth. That’s why proposals for putting an end to the current economic mess focus so narrowly on more innovation, on the one hand, and finding some way to gimmick the money economy so that it no longer drags on the wealth economy, on the other. 

Now, of course, scarcely any two people agree on what measures will get the two economies in sync again. Similarly there’s no general agreement over where government support for innovation ought to go. But there’s near-universal agreement that getting these two factors to work right is the way out of the ongoing global economic crisis.

The Tangled Web We’ve Woven

The disagreements between partisans of various economic schemes, and between proponents of various new technologies, make it easy to miss the fact that something is happening that’s clean outside the box of contemporary economic thought.

The wealth economy and the money economy are certainly out of sync just now, but the problem isn’t in the money economy; it’s in the wealth economy.

The production of real goods and services has run up against limits that are not financial in nature, and today’s economic orthodoxies can’t even imagine that possibility, much less respond to it in any useful fashion.

In Part II: Slamming Face-First into the Limits to Growth we explain why, given our misguided efforts to solve the wrong problems, you can no longer assume that having enough money — of any kind — will guarantee that you will have enough wealth. Distortions in the money supply driven by the shenanigans of central bankers are not the only force twisting the relationship between money and growth. The key factor now is a contraction in the wealth economy driven by the economic effects of the exhaustion of easily accessible resources. 

There simply is too much money chasing a limited (and, in some cases, shrinking) supply of real wealth. 

Click here to read Part II of this report (free executive summary; enrollment required for full access).

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Seattle Teachers’ Boycott of High Stakes Tests Spreads

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Educators nationwide support growing Seattle teacher boycott of high stakes tests.Educators nationwide support growing Seattle teacher boycott of high stakes tests.

Joe ‘You Lie’ Wilson Badgers Clinton About Not Appearing on Sunday Shows

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Unlike another former presidential candidate who’s showing up on those shows literally every other week because he apparently can’t get enough of hearing himself talk in front of the cameras, we found out Secretary of State Hillary Clinton is not quite so fond of them during the hearings on Benghazi this Wednesday.

Apparently Clinton not appearing on the Sunday shows right after the attack in Benghazi was of great concern to wingnut Rep. “You Lie” Joe Wilson and here’s how Clinton responded to him when asked about it: Clinton: Going On Sunday Shows ‘Is Not My Favorite Thing To Do’:

Wilson continued his line of questioning, reading from an op-ed written by a retired foreign service officer, William Boudreau last year. Clinton addressed the majority of the concerns addressed in the column and here’s more on one of the many right wing memes being pushed in the article, which is that the White House and their national security team were supposedly watching the attacks in real time. They weren’t and this article explains where that lie originated before the right wing blogs and Fox picked it up and ran with it: How a Real News Story Became the ‘Obama Watched Them Die’ Meme.

Clinton also discussed something I hadn’t heard before on the issue of why they did not have Marines guarding the compound.

I have no doubt that no matter what Clinton said during these hearings, it won’t satisfy the right who was just itching to take her down and who wanted to turn the tragedy in Benghazi into some grand conspiracy theory in the run up to the presidential election. I don’t think the right did themselves any favors putting the likes of Wilson and his counterparts in the House, or flame throwers in the Senate like Ron Johnson and Rand Paul on display for all to see.

I will be surprised if we don’t see another bump in her popularity ratings once some new polls come out following this fiasco. I’m not a big fan of Hillary Clinton, but I gained some new respect for her after watching the way she handled herself during these hearings. She’s got a lot more patience than I would have had for these Republicans throwing every ounce of mud against the wall to see what would stick over this drummed up fake scandal they’ve been screaming about for months.

WILSON: Thank you, Mr. Chairman.

And, Madam Secretary, thank you for being here today.

I particularly appreciate your recognition of AFRICOM, Plan Colombia. Indeed, these have been extraordinary success stories promoting peace throughout the world. The American people always appreciate its American heroes. Chris Stevens, Sean Smith, Tyrone Woods and Glen Doherty.

As we begin, I do want to point out, though, for the record, I believe that Congressman Rohrabacher is correct. There was an e-mail from the chief financial officer for diplomatic security following the Benghazi attack. Specific quote, “although diplomatic security has been fiscally prudent, I do not feel that we have ever been in a point where we sacrifice security due to a lack of funding,” end of quote.

That actually is an attribute to you. And I have faith in the chief financial officer that it’s a correct statement.

As we begin, it’s been reported that since you managed the response to the Benghazi attack, why weren’t you the person to appear on the Sunday shows immediately following the attack? Ambassador Susan Rice said that you declined. Was that correct?

CLINTON: Well, I — I have to confess here in public, going on the Sunday shows is not my favorite thing to do. There — there are other things I’d prefer to do on Sunday mornings. And, you know, I haven’t been on a Sunday show in way over a year. So it just isn’t something that I normally jump to do.

And I did feel strongly that we had a lot that we had to manage, that I had to respond to, and I thought that should be my priority.

WILSON: And — and I believe that part of the priority is telling correct information, and you could have done that. And I think it was just very unfortunate, the multiple appearances by Ambassador Rice with information that’s been discovered not to be correct.

In the November 21st, 2012, edition of the Charleston Post and Courier, a letter was published by William J. Boudreau, a retired foreign service officer of Seabrook Island. He wrote, “Within the U.S. State Department there’s an office known as the OpCenter. It is located in the Office of the Secretary of State. It is staffed around the clock, 24/7 by seasoned foreign service officers. Its function is to be sensitive to any threat to American interests wherever they might arise.

The OpCenter has direct, secure communication lines to the White House Situation Room, the national military command center at the Pentagon, and the CIA’s OpCenter.

“Having worked as a watch officer at the OpCenter, I know that any information that indicates a threat to the safety of American citizens overseas is passed to other agencies mentioned above.

If it’s a significant message concerning American interest received, it is the watch officer’s job to ensure that these other agencies are informed. He goes on. There are many questions that need to be answered, and I’d like to present these questions on his behalf.

First and foremost, what was going on at the Op Center of the State Department, and Washington, while our consulate was under attack for seven hours?

CLINTON: Well, we can certainly give you greater details. But the Op Center is, as you have described, you know, the place where communications goes in and out. They were placing calls. They were receiving calls.

They were, you know, deeply engaged in trying to help us. They don’t reach out on their own, but to help us acquire information so that we could respond in real time.

WILSON: And seven hours. I mean, goodness gracious, there should have been a response. Why the delay in labeling the attack as terrorism, when it was immediately known that it was?

CLINTON: Well, you know, again, I would say, Congressman, that we described the attack. I described the attack the next morning. The president called it an act of terror.

There was a — as you’ll find in reading both the unclassified and classified version of the ARB, there was a lot of questions about who was behind it, what motivated it. And the ARB says those questions are still not fully answered today.

WILSON: And he continues. Why weren’t Marine guards posted in Benghazi in the first place?

CLINTON: Because historically, Marine guards are at posts where there is classified information. Marine guards have not historically had the responsibility for protecting personnel. Their job is to protect, and if necessary, destroy classified material. At our compound, there was no classified material.

WILSON: And he continues in line with everybody else, pointing out that there were requests to enhance security that were denied. We weren’t able to reach all the questions. I appreciate you responding to Mr. Budrow’s (ph) questions. I’ll submit them for the record for your office for a written response.

CLINTON: Thank you, Congressman.

WILSON: Thank you.

“Fire in the Blood”: Millions Die in Africa After Big Pharma Blocks Imports of Generic AIDS Drugs

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AMY GOODMAN: We’re broadcasting from the Sundance Film Festival in Park City, Utah. We had an extended break because we lost a link with the satellite. And I want to thank Jennifer Robinson for having joined us, a legal adviser to Julian Assange. As we turn now to another film about what some have described as the crime of the century. The new documentary, Fire in the Blood, explores how major pharmaceutical companies, including Pfizer and GlaxoSmithKline, as well as the United States, prevented tens of millions of people in the developing world from receiving affordable generic AIDS drugs. Millions died as a result. This is a part of the trailer of Fire in the Blood.

DR. PETER MUGYENYI: Over two million people were reported to have died in that year alone.

YUSUF HAMIED: The whole of Africa was being taken for a ride.

BILL CLINTON: It’s fine for people in rich countries to say this is what it ought to be. They don’t have to live in these little villages and watch people die like flies.

DR. PETER MUGYENYI: Where are the drugs? The drugs are where the disease is not.

DONALD McNEIL: “You fight our patent monopolies, we will make sure you die.”

NELSON MANDELA: As long as drugs are not available to everybody, he will not take them.

JAMES LOVE: It was just kind of a crisis of humanity. People just weren’t really human for a moment.

AMY GOODMAN: That’s an excerpt of Fire in the Blood, the film tracing how Big Pharma refused to allow countries to break patents and allow for the importation of cheap generic AIDS drugs. The problem continues today, as the World Trade Organization continues to block the importation of generic drugs in many countries because of a trade deal known as the TRIPS Agreement. Fire in the Blood just had its North American premiere here at the Sundance Film Festival.

For more, we’re joined by two guests: Dylan Mohan Gray, director of Fire in the Blood, based in Mumbai, India, and Dr. Peter Mugyenyi, a Ugandan AIDS doctor featured in the film, recognized as one of the world’s foremost specialists and researchers in the field of HIV/AIDS. He played a key role in founding Uganda’s HIV/AIDS Joint Clinical Research Centre, and is author of a new book, Genocide by Denial: How Profiteering from HIV/AIDS Killed Millions.

We welcome you both to Democracy Now! Dylan, let’s begin with you, why you made this film.

DYLAN MOHAN GRAY: Well, basically, I think the story sort of came to me by accident, to be honest. I was working on a film in Sri Lanka in 2004, and I had a day off and just happened to read an article in The Economist, of all things, which–it struck me as very interesting, because it was about one of the characters in our film, Dr. Yusuf Hamied, who’s an Indian generic drug maker, and it was talking about how he was bringing in low-cost antiretroviral medications to Africa. Yet it seemed something interesting was going on beneath the surface. It seemed like this was obviously, you know, to my mind, a very good thing that he was doing, but they were going out of their way, I felt, to attack him, but it wasn’t clear why. So, it piqued my interest. And, you know, not long later, I had the opportunity to meet Dr. Hamied. And through him, I met several of the other people that became contributors to the film.

And I used to be in the academic world, and, you know, the historian in me was just completely shocked and scandalized that, A, I didn’t know more about the story, and, B, that there was so little written about it or, you know, there were no comprehensive accounts of what had happened–you know, something that had killed 10, 12 million people, and it seemed to have happened almost without a record. So, you know, the impetus to make the film, primarily, was actually to create a record, a memorial and a chronicle of what happened. And as you say, I mean, we consider this to be the crime of the century.

AMY GOODMAN: Dr. Mugyenyi is featured in the film. And it’s an honor to have you here with us–

DR. PETER MUGYENYI: Thank you.

AMY GOODMAN: –before you head back home to Uganda, where you had been imprisoned, jailed, as you tried to bring generic drugs into Uganda, to get these drugs at a cheaper amount. Explain what Dr. Hamied did, this–I mean, what Cipla, the head of Cipla did, this drug company, how he challenged the rest of the world in saying he would cut the prices of AIDS drugs from–what was it? The amount that people would have to pay for the triple cocktail, before and after Hamied?

DR. PETER MUGYENYI: Well, there was a misinformation, worldwide misinformation, that AIDS drugs were too expensive to manufacture. The second misinformation that was there was that Africans would not be able to use these drugs, that it was impossible to use these drugs in the African condition. Dr. Hamied called the bluff of all of those who were propagating this false information that cost so many lives of people.

AMY GOODMAN: How?

DR. PETER MUGYENYI: Well, he just literally announced that it is not true that these drugs can only be manufactured at such an exorbitant cost. He demonstrated that they could be demonstrated at relatively affordable cost, which would save millions of lives because of affordability. So it was the issue of affordability and access where Hamied came in and acted.

AMY GOODMAN: So before him, drug companies were charging like $15,000 for a year for one patient to get a triple cocktail for the year. And he cut that price to less than a dollar a day? $15,000 to $350 for the year?

DR. PETER MUGYENYI: Yes, and that action was incredible. For the first time, millions of people who were dying stopped dying in Africa, because they started accessing life-saving drugs.

AMY GOODMAN: Why did you end up in jail in Uganda?

DR. PETER MUGYENYI: Well, it was–I was arrested, but I was rescued because Uganda government was concerned about the plight of the citizens who were dying in such a big number. So an emergency meeting that rescued me from arrest took place in front of the government ministers, and at that meeting I made it clear: I said to the meeting that, “Look, your relatives are dying of AIDS. Your citizens are dying of AIDS. I’m a doctor working among the AIDS patients, and I have no tools to save my patients’ lives. All I have done is to import affordable drugs, which will increase access. These drugs are at the airport. They are under your care. You can block them from coming in, but as far as I’m concerned, I have done my job of bringing life-saving drugs to Uganda.” And I think they understood. And every one of them had relatives who were suffering from AIDS, or at least a friend whom they knew who had died from AIDS. And so, this was–it was not very difficult to convince them that this action was necessary, and I needed to be out saving lives with drugs instead of being arrested.

AMY GOODMAN: Another of the heroes in the fight to bring life-saving drugs to HIV/AIDS patients is Zackie Achmat of South Africa’s Treatment Action Campaign. In 1999, Achmat, who is HIV-positive, went on a treatment strike in solidarity with others who couldn’t afford medication. He’s featured in Fire in the Blood.

ZAKIE ACHMAT: If my sisters or brothers or cousins had HIV or had AIDS and needed medicines, they wouldn’t have been able to get it. And I grew up in a house where your mom would say, “If all the kids can’t have chocolate, one is not going to have it.”

NARRATOR: Having made up his mind, Zackie Achmat announced that he would boycott antiretrovirals until the South African government made them available to everyone.

AMY GOODMAN: Dylan Mohan Gray, talk about the significance of Zackie Achmat and what the whole issue of patents is about in these U.S. companies.

DYLAN MOHAN GRAY: Well, Zackie Achmat, as you said, is one of the great heroes of this story. And I think the boycott that he undertook, very much with a sort of a Gandhian impetus in mind, you know, it was a very deliberate action that he took. And as he says in the film, you know, he grew up in a family where his mother said, if one child couldn’t have chocolate, then none of the children were going to get it. And that’s a very simple way of looking at it, but that’s something I think we can all identify with. He grew up, you know, struggling against apartheid in South Africa, a very strong sense of solidarity with his fellow man. And, you know, he could easily have accessed the drugs, because he was an internationally known activist, but he said, “No, I’m not going to do it.” And he came very close to death by taking that decision. And I think, you know, it had a very, very big impact on waking people, especially in the Western world, up to the reality of the situation in sub-Saharan Africa. So, you know, the gamble paid off, so to speak.

AMY GOODMAN: Say that last part.

DYLAN MOHAN GRAY: I said the gamble paid off. I feel like his gamble that he took–I mean, he risked his life–but in a sense, the gamble paid off, because the impact of what he did, you know, had repercussions throughout the world and woke a lot of people up to the situation of access to medicine in Africa.

AMY GOODMAN: Explain how the patents work.

DYLAN MOHAN GRAY: A patent is a government-granted monopoly or a grant of exclusivity which is given to companies, generally, or individuals, with the idea that by giving a period of the exclusivity, one would incentivize investment. So, what typically happens with pharmaceutical companies is they will purchase technology from others, whether it be universities or small biotech companies or other small innovative outfits, and they will then commercialize these products. And because they will have a monopoly for a period of time, usually a minimum of 20 years, they will be able to set the price at any level they wish. And we have the former vice president of Pfizer in our film, who says very openly the concept is to maximize revenue. It has nothing to do with the cost of research and development.

AMY GOODMAN: Dr. Mugyenyi, what needs to happen right now, in these last 30 seconds?

DR. PETER MUGYENYI: Well, what needs to happen is the realization that an inequitable, unethical situation exists with the related TRIPS Agreement, and that lives, millions of lives, are at stake unless this TRIPS Agreement and patents issue are addressed–not to hurt business, but to make sure that they do not hurt patients and result in a bloodbath, that we have seen in the case of HIV/AIDS.

AMY GOODMAN: I want to thank you both very much for being with us, Dr. Peter Mugyenyi from Uganda and Dylan Mohan Gray, director of the new film that has just premiered here at the Sundance Film Festival, Fire in the Blood.

Al-Qaida nel Maghreb islamico: Chi sono e chi c’è dietro?

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ansar el dine

Global Research, 21 gennaio 2013

Chi c’è dietro il gruppo terroristico che ha attaccato il complesso gasifero della BP-Statoil-Sonatrach del giacimento di Amenas, che si trova al confine con la Libia nel sud-est dell’Algeria?
L’operazione era stata coordinata da Moqtar Belmoqtar, leader della brigata islamista al-Mulathamin, o “coloro che si firmano con il sangue”, affiliata ad al-Qaida. L’organizzazione di Belmoqtar è coinvolta nel traffico di droga, nel contrabbando e nel sequestro di stranieri nel Nord Africa. Sebbene la sua ubicazione sia nota, l’intelligence francese ha soprannominato Belmoqtar “l’imprendibile”. Belmoqtar si è assunta la responsabilità, per conto di al-Qaida, del rapimento di 41 ostaggi occidentali, tra cui 7 statunitensi, nel complesso gasifero della alla BP di Amenas. Belmoqtar, tuttavia, non è stato direttamente coinvolto nell’attacco vero e proprio. Il comandante sul campo dell’operazione era Abdul Rahman al-Nigeri, un veterano jihadista del Niger, che aveva fatto parte del Gruppo Algerino per la Predicazione e il Combattimento (GSPC) nel 2005. (Albawaba, 17 gennaio 2013)

L’operazione per il sequestro di Amenas è stata effettuata cinque giorni dopo l’avvio degli attacchi aerei della Francia contro i militanti di al-Qaida nel Maghreb Islamico (AQIM) nel nord del Mali. Le forze speciali francesi e le truppe del Mali hanno ripreso il controllo di Diabaly e Konna, due cittadine a nord di Mopti. La città di Diabaly era stata apparentemente presa pochi giorni prima dai combattenti guidati da uno dei principali comandanti di AQIM, Abdelhamid Abu Zeid. Mentre l’attacco terroristico e il sequestro dell’impianto gasifero d’In Amenas è stato descritto come una vendetta, non è stata per nulla improvvisato, come confermato dagli analisti, l’operazione con ogni probabilità è stata pianificata con largo anticipo: “Ufficiali europei e statunitensi dicono che il raid era quasi certamente fin troppo elaborato, per essere stato pianificato in così breve tempo, anche se l’operazione della Francia avrebbe spinto i combattenti a condurre un assalto che avevano già preparato.”
Secondo i recenti rapporti (20 gennaio 2012) ci sono state circa 80 vittime, tra ostaggi e combattenti jihadisti. Vi erano diverse centinaia di lavoratori nell’impianto gasifero, la maggior parte dei quali algerini. “Tra le persone soccorse, solo 107 su 792 lavoratori erano stranieri”, secondo il ministero degli Interni algerino. I governi britannico e francese incolpano i jihadisti. Secondo il primo ministro britannico David Cameron: “Naturalmente la gente farà delle domande sulla reazione algerina a questi eventi, ma vorrei solo dire che la responsabilità di queste morti ricade direttamente sui terroristi che hanno lanciato questo attacco, feroce e vile. (Reuters, 20 gennaio 2013).
Notizie di stampa confermano, tuttavia, che il gran numero di morti tra gli ostaggi e i combattenti islamici è stato il risultato dei bombardamenti delle forze algerine. Dei negoziati con i rapitori, che avrebbero potuto salvare delle vite, non sono stati seriamente contemplati né dai governi algerini né da quelli occidentali. I militanti chiedevano la fine degli attacchi francesi nel nord del Mali, in cambio della sicurezza per gli ostaggi. Il leader di al-Qaida Belmoqtar aveva affermato: “Siamo pronti a negoziare con l’occidente e il governo algerino, a condizione che s’interrompano i bombardamenti dei musulmani del Mali.” (Reuters, 20 gennaio 2013) Nelle fila dei jihadisti vi erano mercenari provenienti da un certo numero di paesi musulmani, tra cui la Libia (ancora da confermare), così come dei combattenti provenienti da paesi occidentali.

Al-Qaida nel Maghreb Islamico (AQIM). Chi è?

Vi è un certo numero di gruppi affiliati attivamente presenti nel nord del Mali:
– Al-Qaida nel Maghreb Islamico (AQIM), guidato da Abdelmaleq Druqdel, “l’emiro di al-Qaida nel Maghreb islamico”,
– Ansar al-Din guidato da Iyad Ag Ghaly,
– il Movimento per l’Unicità e la Jihad in Africa occidentale (MUJAO).
Il Gruppo Islamico Armato, o Groupe Islamique Armé (GIA) che era in primo piano negli anni ’90, è in gran parte defunto. I suoi membri hanno aderito ad AQIM.
Il Movimento Nazionale per la Liberazione del Azawad (MNLA) è un movimento per l’indipendenza tuareg, nazionalista e laico.

Cenni storici

Nel settembre 2006, il Gruppo Salafita per la Predicazione e il Combattimento (GSPC) unì le forze con al-Qaida. Il GSPC è stato fondato da Hassan Hattab, un ex comandante del GIA. Nel gennaio 2007, il gruppo mutò ufficialmente il nome in al-Qaida nel Maghreb Islamico (AQIM). Nei primi mesi del 2007 la nuova formazione stabilì stretti rapporti con il Gruppo combattente islamico libico (LIFG). I comandanti del GSPC si ispirano all’insegnamento religioso del salafismo dell’Arabia Saudita, che storicamente ha svolto un ruolo importante nell’addestramento dei mujahidin in Afghanistan. La storia dei comandanti jihadisti di AQIM è importante per affrontare la questione più ampia:

– Chi c’è dietro le varie fazioni affiliate ad al-Qaida?
– Chi sostiene i terroristi?
– Quali interessi politici ed economici servono?

Il Counsil on Foreign Relations (CFR) di Washington fa risalire le origini di AQIM alla guerra in Afghanistan: “La maggior parte dei leader principali di AQIM si crede sia stato addestrata in Afghanistan durante la guerra contro i sovietici, nel 1979-1989, nell’ambito del gruppo di volontari del Nord Africa conosciuto come “arabi afghani”, che ritornarono nella regione e radicalizzarono i movimenti islamici, negli anni che seguirono. Il gruppo è diviso in “katiba” o brigate, che raggruppano cellule diverse e spesso indipendenti. Il comandante supremo del gruppo, o emiro, dal 2004 è Abdelmaleq Druqdel, noto anche come Abu Mussab Abdelwadud, un ingegnere esperto di esplosivi che ha combattuto in Afghanistan ed ha origini nel GIA in Algeria. Fu sotto la guida di Druqdel che AQIM dichiarò che la Francia è il suo obiettivo principale. Uno dei “più violenti e radicali” leader di AQIM è Abdelhamid Abu Zeid, secondo gli esperti di antiterrorismo. Abu Zied è legato a diversi rapimenti ed esecuzioni di cittadini europei nella regione. (Council on Foreign Relations, al-Qaida nel Maghreb Islamico, Cfr.org, senza data).

Ciò che il rapporto del CFR non riesce a ricordare è che la Jihad islamica in Afghanistan fu un’iniziativa della CIA, avviata nel 1979 durante l’amministrazione Carter. Venne attivamente sostenuta dal presidente Ronald Reagan nel corso degli anni ’80. Nel 1979, la più grande operazione segreta nella storia della CIA venne attuata in Afghanistan. Missionari wahabiti provenienti dall’Arabia Saudita crearono delle scuole coraniche (madrase) in Pakistan e Afghanistan. I libri di testo islamici utilizzati nelle madrasse venivano stampati e pubblicati in Nebraska. Il finanziamento occulto veniva incanalato ai mujahidin con il sostegno della CIA: “Con l’attivo incoraggiamento della CIA e dell’ISI pakistano, che volevano trasformare la jihad afghana in una guerra globale condotta da tutti gli stati musulmani contro l’Unione Sovietica, circa 35.000 musulmani radicali provenienti da 40 paesi islamici si unirono alla lotta in Afghanistan, tra il 1982 e il 1992. Decine di migliaia di persone andarono a studiare nelle madrase pakistane. Alla fine, più di 100.000 musulmani radicali stranieri furono direttamente influenzati dalla jihad afghana.” (Ahmed Rashid,”I taliban: l’esportazione dell’estremismo”, Foreign Affairs, novembre-dicembre 1999).

La Central Intelligence Agency (CIA), usando i militari pakistani dell’Inter-Services Intelligence (ISI), svolse un ruolo chiave nell’addestramento dei mujahidin. A sua volta, l’addestramento dei guerriglieri sponsorizzati dalla CIA venne integrato con gli insegnamenti dell’Islam: “Nel marzo 1985, il presidente Reagan firmava la Decisione direttiva per la Sicurezza Nazionale N° 166, … [che] autorizzava [l’]intensificazione degli aiuti militari occulti ai mujahidin, e chiariva che la guerra segreta afghana aveva un nuovo obiettivo: sconfiggere le truppe sovietiche in Afghanistan attraverso azioni occulte e incoraggiare il ritiro sovietico. La nuova assistenza segreta degli Stati Uniti iniziò con un drammatico aumento delle forniture di armi, un costante aumento fino a 65.000 tonnellate all’anno nel 1987… così come un “flusso incessante” di specialisti della CIA e del Pentagono che si recarono al quartier generale segreto dell’ISI pakistana, sulla strada principale di Rawalpindi, in Pakistan. Gli specialisti della CIA incontrarono i funzionari dell’intelligence pakistana per pianificare le operazioni dei ribelli afghani.” (Steve Coll, Washington Post, 19 luglio 1992)
Moqtar Belmoqtar, la mente dietro l’attacco terroristico della brigata islamista al-Mulathamin al complesso gasifero di Amenas, è uno dei membri fondatori di AQIM. Fu addestrato e reclutato dalla CIA in Afghanistan. Belmoqtar era un volontario nordafricano, un “afgano arabo” arruolatosi a 19 anni come mujahidin per combattere nelle fila di al-Qaida in Afghanistan, in un momento in cui la CIA e la sua affiliata pakistana, l’Inter Services Intelligence (ISI), sostenevano attivamente sia il reclutamento che l’addestramento dei jihadisti. Moqtar Belmoqar ha combattuto nella “guerra civile” in Afghanistan. Tornato in Algeria nel 1993, si unì al GSPC. La storia di Belmoqtar e il suo coinvolgimento in Afghanistan suggeriscono che sia stato sponsorizzato quale “asset dell’intelligence” statunitense.

Il ruolo degli alleati degli USA: Arabia Saudita e Qatar

Al-Qaida nel Maghreb Islamico (AQIM) fin dal 2007 aveva stabilito una stretta relazione con il Gruppo combattente islamico libico (LIFG), i cui leader erano stati addestrati e reclutati in Afghanistan dalla CIA. Il LIFG era sostenuto segretamente dalla CIA e dall’MI6 britannico. Il LIFG è stato supportato direttamente dalla NATO durante la guerra del 2011 contro la Libia, “fornendo armi, addestramento, forze speciali e perfino aerei per aiutarlo a rovesciare il governo della Libia.” (Tony Cartalucci, The Geopolitical Reordering of Africa: US Covert Support to Al Qaeda in Northern Mali, France “Comes to the Rescue”, Global Research, gennaio 2013).

Le Forze speciali britanniche SAS giunsero in Libia prima dell’inizio dell’insurrezione, in qualità di consulenti militari del LIFG. Recentemente, relazioni confermano che AQIM ha ricevuto armi dal Gruppo combattente islamico libico (LIFG). Mercenari del LIFG si sono integrati nelle brigate di AQIM. Secondo il comandante Moqtar Belmoqtar, che ha coordinato l’operazione del sequestro di In Amenas: “Siamo uno dei principali beneficiari delle rivoluzioni nel mondo arabo. Per quanto ci riguarda, abbiamo ottenuto delle armi (dalla Libia), questa è una cosa naturale in simili circostanze.” http://www.hanford.gov/c.cfm/oci/ci_terrorist.cfm?dossier=174

L’impianto della BP ad In Amenas è situato direttamente sul confine con la Libia. Si sospetta che vi fosse un contingente di combattenti del Gruppo combattente islamico libico (LIFG) coinvolto nell’operazione. AQIM ha anche legami con il Fronte al-Nusra in Siria, sostenuto segretamente da Arabia Saudita e Qatar.

Al-Qaida nel Maghreb Islamico è indelebilmente legato all’agenda delle intelligence occidentali. È descritto come “uno dei più ricchi e più armati gruppi militanti della regione”, finanziato segretamente da Arabia Saudita e Qatar. Il giornale francese Canard enchaîné ha rivelato (nel giugno 2012) che il Qatar (un fedele alleato degli Stati Uniti) ha finanziato varie entità terroristiche in Mali, tra cui il salafita Ansar al-Din: “I ribelli tuareg del MNLA (indipendentisti e laici), Ansar al-Din, AQIM (al-Qaida nel Maghreb islamico) e Mujao (Jihad in Africa occidentale), ricevono dollari dal Qatar, secondo un rapporto (The Examiner). Il giornale satirico francese Canard enchaîné riportava [nel giugno 2012] che il Qatar stava probabilmente finanziando gruppi armati nel nord del Mali, che si diffondevano in Algeria e nell’Africa occidentale. I sospetti che Ansar al-Din, il principale gruppo armato pro-shari’ah nella regione, abbia ricevuto finanziamenti dal Qatar, circolano in Mali da diversi mesi. Rapporti (ancora non confermati) su un aereo del ‘Qatar’ che sarebbe atterrato a Gao carico di armi, denaro e droga, per esempio, sono emersi all’inizio del conflitto. L’articolo originale cita un rapporto dell’intelligence militare francese che indicava che il Qatar forniva sostegno finanziario a tutti e tre i principali gruppi armati nel nord del Mali: l’Ansar al-Din di Iyad Ag Ghali, al-Qaida nel Maghreb Islamico (AQIM) e il Movimento per l’Unicità e la Jihad in Africa occidentale (MUJAO). L’importo del finanziamento concesso a ciascuno dei gruppi non viene menzionato, ma si parla di rapporti ripetuti del DGSE francese al ministero della Difesa, che indicavano il sostegno del Qatar al ‘terrorismo’ nel nord del Mali.”
Il ruolo di al-Qaida nel Maghreb islamico come attività dell’intelligence deve essere attentamente valutata. L’insurrezione islamica crea le condizioni che favoriscono la destabilizzazione politica del Mali come Stato-nazione. Quali interessi geopolitici vengono serviti?

Osservazioni conclusive: “The American Sudan”

Con amara ironia, il sequestro nel sud dell’Algeria e la tragedia risultante dall’operazione militare di “salvataggio” algerina, fornisce una giustificazione umanitaria all’intervento militare occidentale guidato dall’US AFRICOM. Quest’ultimo non opera solo in Mali e Algeria. Potrebbe anche includere la vasta regione che si estende sulla cintura sub-sahariana del Sahel, dalla Mauritania al confine occidentale del Sudan. Questa escalation è parte di un piano militare e strategico degli Stati Uniti, fase segeunte della militarizzazione del continente africano, “un passo successivo” della guerra USA-NATO in Libia del 2011. Si tratta di un progetto di conquista neo-coloniale degli Stati Uniti di una vasta area.
Mentre la Francia è l’ex potenza coloniale che interviene a nome di Washington, la fine del gioco vedrà l’esclusione della Francia, infine, dal Maghreb e dall’Africa sub-sahariana. Questo declassamento della Francia come potenza coloniale, è stato avviato fin dalla guerra di Indocina nel 1950. Mentre gli Stati Uniti si preparano, a breve, a condividere il bottino di guerra con la Francia, l’obiettivo ultimo di Washington è “ridisegnare la mappa del continente africano” e infine portare l’Africa francofona nella sfera di influenza statunitense. Quest’ultima si estenderebbe su tutto il continente, dalla Mauritania sull’Atlantico a Sudan, Etiopia e Somalia. Un analogo processo di esclusione della Francia dall’Africa francofona è in corso dal 1990 in Ruanda, Burundi e Repubblica del Congo. A sua volta, il francese quale lingua ufficiale nell’Africa francofona, viene insidiato. Oggi in Ruanda l’inglese è la lingua ufficiale, accanto al kinyarwanda e al francese. Da quando l’RPF è al governo, dal 1994, l’istruzione secondaria veniva offerta in francese o in inglese. Ma dal 2009 viene offerta solo in inglese. L’università, dal 1994, non utilizza più il francese. (Il presidente del Ruanda Paul Kagame non legge o non parla francese). Nel 2009, il Rwanda entrava a far parte del Commonwealth.
La posta in gioco è un vasto territorio che, durante il periodo coloniale francese copriva l’Africa occidentale ed equatoriale francese. Il Mali durante il periodo francese veniva indicato come Le Soudan français (il Sudan francese). Ironia della sorte, questo processo di indebolimento e, infine, di esclusione della Francia dall’Africa francofona viene effettuato con l’avallo tacito dell’ex presidente Nicolas Sarkozy e del presidente François Hollande, entrambi al servizio degli interessi geopolitici degli Stati Uniti, a danno di quelli della Repubblica francese. La militarizzazione del continente africano fa parte del mandato dell’US AFRICOM. L’obiettivo a lungo termine è esercitare il controllo geopolitico e militare su una vasta area, che storicamente rientrava nella sfera d’influenza della Francia. Questa zona è ricca di petrolio, gas, oro, uranio e minerali strategici. (Cfr. R. Teichman, The War on Mali. What you Should Know: An Eldorado of Uranium, Gold, Petroleum, Strategic Minerals…, Global Research, 15 gennaio 2013)

Copyright © 2013 Global Research

Both Houses of Congress Partner to Address Climate Crisis

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WASHINGTON – January 24 – Today Rep. Henry Waxman (D-CA) and Senator Sheldon Whitehouse (D-RI) announced a partnership between both chambers of Congress to push for and defend stronger federal policies that will address pollution causing climate change.

In his inaugural address President Obama underscored the obligation we have to not just ourselves but to all posterity to respond to the threat of climate change, thereby elevating this vital issue to a top-level priority for his second term.

The following is a statement from Marty Hayden, Earthjustice Vice President for Policy & Legislation:

“In his second inaugural address, the President elevated the need to act on climate change as a clear priority for his administration over the next four years. We commend Rep. Waxman and Sen. Whitehouse for stepping up to support the President and keep our nation focused on this problem and its solutions.

“Ultimately, our nation’s citizens, coasts, forests, waterways and wildlife are all at stake. The longer we wait to meaningfully address the problem, the more the American people and future generations will suffer. Again, we applaud these Congressional leaders for seizing this moment and we look forward to working together with them and the Administration on solutions.”

Earthjustice is a non-profit public interest law firm dedicated to protecting the magnificent places, natural resources, and wildlife of this earth, and to defending the right of all people to a healthy environment. We bring about far-reaching change by enforcing and strengthening environmental laws on behalf of hundreds of organizations, coalitions and communities.

Lawsuit Launched to Speed Federal Protection for Boreal Toads

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DENVER – January 24 – The Center for Biological Diversity and Rocky Mountain Wild filed a formal notice of intent to sue the U.S. Fish and Wildlife Service today over the agency’s failure to protect boreal toads in the southern Rocky Mountains, Utah, southern Idaho and northeastern Nevada under the Endangered Species Act. This unique population of toads is in steep decline due to a deadly fungal disease and habitat destruction.

“People used to see these toads in their gardens, but now boreal toads are gone from those gardens, and from most of the other places they called home,” said Center attorney and biologist Collette Adkins Giese. “In the southern Rockies they’ve been waiting nearly two decades for Endangered Species Act protection – protection that’s needed right away to address the drastic decline of these animals and the forces destroying their habitat.”

Once widely distributed and common in the western United States, boreal toad populations have plummeted over the past few decades. Their status is particularly precarious in the southern Rocky Mountains, where a globally occurring amphibian disease known as chytrid fungus has wiped out most remaining populations. Boreal toads exist in less than 1 percent of their historic breeding areas in the southern Rockies.

To gain federal protection for these highly imperiled toads, the Center, Rocky Mountain Wild (formerly Center for Native Ecosystems) and Biodiversity Conservation Alliance filed an Endangered Species Act petition on May 25, 2011. The U.S. Fish and Wildlife Service issued a positive 90-day finding on the petition on April 12, 2012, and initiated a full status review for boreal toads in the southern Rocky Mountains, Utah, southern Idaho and northeastern Nevada. A final listing decision was due on May 25, 2012.  

“The boreal toad is the region’s only alpine, forest-dwelling toad,” said conservation biologist Megan Mueller of Rocky Mountain Wild. “This unique toad is an indicator of the environmental health of our mountain streams and wetlands. The boreal toad cannot afford any additional delay from the agency.”

Endangered Species Act protection for the toad will likely increase federal funding for research to stem chytrid fungus and help save high-elevation stream and wetland habitat from threats like pollution and poorly managed recreation and livestock grazing. The Endangered Species Act has prevented extinction for 99.9 percent of the species it protects.

Background
In response to a 1993 petition filed by the Biodiversity Legal Foundation (later incorporated into the Center for Biological Diversity), the Service determined in 1995 that boreal toads in the southern Rockies deserved protection under the Endangered Species Act but that higher-priority actions precluded listing. The agency added the southern Rocky Mountain population to its candidate list.

Under the Bush administration, in 2005, the Service made matters worse by reversing course and removing boreal toads from the candidate list. The agency concluded that boreal toads in the southern Rockies were not “significant,” in part because they appeared genetically similar to other populations found elsewhere in the West.

Since then, two genetic studies have shown that boreal toads in the southern Rockies are part of an evolutionarily significant “clade” that includes boreal toads in Utah, northeastern Nevada and southern Idaho. This group of boreal toads contains as much genetic diversity as previously recognized species.

The boreal toad is rare across its range and is entirely absent from numerous areas where it occurred historically; the only remaining large population occurs in Colorado. Boreal toads were nearly extirpated in southern Wyoming and were likely extirpated in New Mexico prior to a recent reintroduction effort. The Service’s positive 90-day finding, issued last year, recognizes the scientific evidence showing that these genetically unique boreal toads are experiencing significant declines in population size and distribution.

At the Center for Biological Diversity, we believe that the welfare of human beings is deeply linked to nature – to the existence in our world of a vast diversity of wild animals and plants. Because diversity has intrinsic value, and because its loss impoverishes society, we work to secure a future for all species, great and small, hovering on the brink of extinction. We do so through science, law, and creative media, with a focus on protecting the lands, waters, and climate that species need to survive.

U.N. Human Rights Expert Launches Targeted Killing Inquiry

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NEW YORK – January 24 – The United Nations announced this morning the official launch of an investigation into targeted killings by the United States and other governments. The inquiry will be led by Ben Emmerson, the U.N. special rapporteur on counterterrorism and human rights. The results of the investigation, to be run from Geneva, will be reported to the U.N. General Assembly in the fall.

“We welcome this investigation in the hopes that global pressure will bring the U.S. back into line with international law requirements that strictly limit the use of lethal force,” said Hina Shamsi, director of the American Civil Liberties Union’s National Security Project. “Virtually no other country agrees with the U.S.’s claimed authority to secretly declare people enemies of the state and kill them and civilian bystanders far from any recognized battlefield. To date, there has been an abysmal lack of transparency and no accountability for the U.S. government’s ever-expanding targeted killing program.”

The ACLU is fighting a legal challenge to the U.S. targeted killing program in a lawsuit brought with the Center for Constitutional Rights on behalf of the families of three Americans killed in targeted killing strikes in Yemen in 2011. The ACLU is also litigating two lawsuits under the Freedom of Information Act to reveal the U.S. government’s legal rationale and other details about the program.

“We hope the U.S. cooperates with the inquiry, and whether it does or not will show whether it holds itself to the same obligation to cooperate with U.N. human rights investigations that it urges on other countries,” said Jamil Dakwar, director of the ACLU’s Human Rights Program. “The U.S. targeted killing program is setting a dangerous precedent for other countries, which will soon have similar drone capabilities but also have less traditional respect for human rights and international law.”

More information on the ACLU’s lawsuits on targeted killing is at:
www.aclu.org/national-security/targeted-killings

The ACLU’s statement to the U.N. Human Rights Council on targeted killing is at:
www.unmultimedia.org/tv/webcast/2012/06/aclu-clustered-id-on-expression-and-executions-continued-5th-meeting.html

Emmerson’s statement from today is at:
www.aclu.org/files/assets/emmerson_statement_on_un_tk_inquiry_24.01.12.pdf

A Fetus Is Not a Person if it Costs us Money, Says Catholic Church

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Forced to put its money where its mouth is, the Catholic Church backs off on the idea that the fetus is a person.

January 24, 2013  |  

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You know how the Catholic Church is always going on and on … and on and freakin’ on … about the sanctity of life and also a bunch of vague concepts about liberty ‘n stuff? We can’t have abortion because every sperm is sacred. We can’t have insurance coverage for women’s health care because something about Taco Bell and freedom. We can’t even fund cancer screening because apparently Jesus was cool with women dying of undetected breast cancer.

And all of this–all of it–goes back to the Church’s insistence that life begins with your very first hell-worthy dirty thought and must be protected at all costs, despite all consequences, including, of course, the consequence of dead women, whose lives are not nearly as valuable as the “life” of an unborn fetus. In just the past year, the Church has called upon its faithful followers to march, to starve themselves, to go to jail, to even take up arms–all to protect those fetuses. No exceptions. None. Not if the fetus is already dead inside the womb. Not if the fetus is going to kill the actual living woman carrying it. No goddamned exceptions EVER.

Well, except for one: when it’s going to cost the Church money.

Turns out, when a man sues a Catholic hospital for malpractice because his wife and the twins she was carrying inside her died when she turned up in the emergency room and her doctor never bothered to answer a page–well, things get a little tricky. Yes, the Catholic hospital adheres to the strict Ethical and Religious Directives of the Catholic Church, as set forth by the U.S. Conference of Catholic Bishops. And yes, those directives include the claim that “[t]he Church’s defense of life encompasses the unborn” and a mandate to uphold “the sanctity of life ‘from the moment of conception until death.'” But come on. That obviously does not apply when Catholic Health Initiatives, the Church-affiliated organization that runs the Church-affiliated St. Thomas More Hospital where a young woman and her two unborn fetuses died, is the lead defendant in a lawsuit:

Instead, they are arguing state law protects doctors from liability concerning unborn fetuses on grounds that those fetuses are not persons with legal rights.

As Jason Langley, an attorney with Denver-based Kennedy Childs, argued in one of the briefs he filed for the defense, the court “should not overturn the long-standing rule in Colorado that the term ‘person,’ as is used in the Wrongful Death Act, encompasses only individuals born alive. Colorado state courts define ‘person’ under the Act to include only those born alive. Therefore Plaintiffs cannot maintain wrongful death claims based on two unborn fetuses.”

Thank you, counselor, for totally undermining everything the Catholic Church has ever said about women and health care and fetuses and the “sanctity of life,” just to save a buck, thereby confirming how very empty and meaningless all that rhetoric really is. Praise the Lord.

Top Ten Republican Myths on Benghazi that Justify Hillary Clinton’s Anger

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Here’s why Clinton grew frustrated at Benghazi hearings yesterday.

January 24, 2013  |  

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1. Republican senators keep saying that it should have been “easy” to find out what happened on September 11, 2012, by simply debriefing US personnel who had been there. John McCain, Ron Johnson and the others who make this charge are the most cynical and manipulative people in the world. The Benghazi US mission was very clearly an operation of the Central Intelligence Agency, and that is the reason that the Obama administration officials have never been able to speak frankly and publicly about it. McCain and the others know this very well, and they know that their public carping cannot be “simply” answered because the answers would endanger sources and methods. The consulate was amazingly well-guarded by some 40 CIA operatives, many of them ex-special forces, in a nearby safe house. These were viewed by consular officials as “the cavalry.” It is still not clear what Ambassador Chris Stevens and the CIA were doing in Benghazi, and unless we know that we can’t know why they were attacked. (They were not overseeing the shipping of weapons to Syria; the Syrian revolutionaries complain bitterly that the US *prevents* them from getting medium and heavy weapons).

2. Republicans keep posturing that their questions about Benghazi are intended to bolster US security. In fact, they are harming it. Republican hearings in the House of Representative have disgracefully revealed the names of Libyans talking to the US consulate, thus endangering their lives and harming US efforts to understand the situation in the country, since who would risk talking to the embassy if they know about Darrell Issa’s big mouth?

3. The GOP figures keep saying that it was obvious that there was no demonstration at the Benghazi consulate against the so-called “film,” the ‘Innocence of Muslims’ that attacked the Prophet Muhammad. But in fact Libyan security officials repeatedly told wire services on September 12 that there was such a demonstration, and that the attack issued from those quarters. An American resident in Benghazi at that time confirms that there were such demonstrations that day. The secular-minded revolutionary militia that guarded the US consulate for the Libyan government kept the demonstrations far enough away from the consulate gates that they would not have shown up in security videos.

4. Benghazi, a city of over a million, is not dominated by “al-Qaeda,” contrary to what Sen. Lindsey Graham of South Carolina has repeatedly said or implied. The city had successful municipal elections in May, just before I got there. The number one vote-getter was a woman professor of statistics at the university. While political Islam is a force in Benghazi, only some relatively small groups are militant, and it has to compete with nationalist, tribal and regional ideological currents. In Libya’s parliamentary elections of July, 2012, the Muslim Brotherhood did very poorly and nationalists came to power. Women won 20% of the seats! The elected Speaker of Parliament, Muhammad Magarief, called for a secular constitution for Libya and a separation of religion and state.

5. Contrary to repeated assertions that it was obvious that terrorist groups were rampaging around in the city, members of the Benghazi municipal council told then US ambassador Chris Stevens that security in the city was improving in summer, 2012.

In fact, one Senator John McCain said during a visit to Libya last February, ““We are very happy to be back here in Libya and to note the enormous progress and changes made in the past few months… We know that many challenges lie ahead… but we are encouraged by what we have seen.” Doesn’t sound to me like McCain was running around like Chicken Little warning that the sky was about to fall on US diplomats there. Want to know who else came along on that trip? Lindsey Graham, who likewise didn’t issue any dire warnings in its aftermath.

Jordanians Vote for the First Time Since Arab Spring

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Special thanks to Mostafa Youssef

Transcript

[Broll of Prime Minister Abdullah Ensour from AJ interview]

VO: A new parliament was voted into office in Jordan by 56% of 2.3 million registered voters. The Islamic Action Front and leftist opposition groups boycotted the elections, calling them “cosmetic” and not dealing with their demands for real reform. Voters said they were forced to choose among the same tribal and pro-government figures who have dominated previous, corruption-ridden parliaments. Jordanians ended 2012 with street protests calling for the first time the downfall of King Abdullah’s regime. Last November, Prime Minister Abdullah Ensour introduced austerity measures, slashing subsidies and raising fuel prices by 54%. The International Monetary Fund hailed the move as an “important step” towards fixing the country’s $3 billion deficit. [broll of protests][protest chants]Om HashemWe can’t marry-off the children, we can’t pay the rent…they raise the prices and we remain silent.The (burkan) needs to make a difference. It’s the first time I go down to protest. I can’t marry off the kids. I am taking my kids out of university. What now? How long will this last for? [ya pharoan shoo pharanak?], he said “no civilian will hinder me from raising the prices”. The gas has become so expensive that us and our children have to sleep in one room to stay warm.Abdel HiyatI am looking for another citizenship. I can’t survive! I can’t find anything ______ in this country! Why should I leave my country? It seems that other countries respect their citizens and be able to eat, drink and educate my children!University StudentThey raised the prices without consulting with the public. Without warning even. We woke up and found they had increased. How and why? That wasn’t important. What was important was that they raised the prices and they don’t care what we think. [I am here because] I won’t allow my parents to stand in line at the post office to get a social assistance cheque to get 23 Dinars ($32 USD) every four months. I plan on receiving a 4 year university degree, and I will not stop half-way so I can stand with my mother to receive her 23 JOD/four months–which I know that after the first installment comes they won’t receive a cheque again.VO: A resource poor landlocked country, Jordan imports 96% of its energy. It’s economy is heavily dependent on foreign aid. Last year alone, Saudi Arabia, Qatar, Kuwait and the UAE have EACH pledged to provide $1.2 billion in aid. The government has had to cut more than 10 percent of its spending to secure a promised $2 billion IMF loan.Yasser Melhim, StudentWith regards to foreign aid, USAID at its head, these organizations have replaced the state’s role. Today, we are lacking essential state services and has weakened the state, and a result has allowed these organization to get involved in political decisions.Ren Wahbe, ArchitectI am here today because I am concerned about the economic problems we are facing under this regime–especially the conditional IMF loans. We are taxed people to lower the deficit, but continue to take foreign loans to implement projects ridden with corruption and theft. This also comes at the price of oppression and imprisonment, even murder.Yasser Melhim, StudentWith regards to increasing the prices, the Jordanian parties came up with alternative methods to cover the deficit of the general budget by incriminating corruption, reclaiming stolen Jordanian resources, and reclaiming corrupt privatization deals of public assets. Any capable lawyer can revise these shady contracts and reclaim the companies that were sold to support the Jordanian budget.VO: Fearing spillover from Syria’s revolution in the North, and eyeing Egypt’s Muslim Brotherhood now in power, Jordanians have not taken chants for regime change lightly. Threatened by a violent confrontation with police, opposition groups quickly scaled back their demands and called for electoral reforms, investigations into corrupt privatization deals, and an end to a heavy-handed security state.JAMAL Hussein, Lawyer, Activist: The youth who chanted [for the downfall of the regime], from the political movement, I believe that they were trying to accelerate the course of events. They didn’t take into consideration that the average citizen is only demanding reform. Even the political groups are still not proposing it as a solution. We’ve seen in other Arab countries the calls on the street was faster than political group’s demands. But this is not the case in Jordan. The street has not called for bringing down the regime. I believe this has impacted the movement and people’s reaction in the street. We haven’t made solid gains, but we’ve broken a barrier with the regime and he is now worried. However, the ones we’ve scared the most is the average citizen.VO: Jordan’s main opposition group is the Islamic Action Front, an arm of the Muslim Brotherhood. The IAF receives the majority its support from Palestinian Refugees, making up almost half of Jordan’s population. The group has called for the cancellation of the Israeli peace treaty, Jordan being one of two countries that have signed. The IAF has boycotted the elections, and has rejected offers for seats in the parliament and senate.Nimer Al-Assaf, Deputy General Secretary, IAFThe Islamic Action Front stems really from the Brotherhood organization in JordanAnd it represents something, what we call, a popular movement. We do not actually aim to be ministers or members of parliament. We were offered to be ministers and given seats in parliament. How many seats do you want in parliament? 25, 30? 40? But participate in the elections.”It is an absolute monarchy, and we demand that it goes back to a parliamentary monarchy.Constitutional reforms which means we are asking for a parliament which does not gets dissolved by the King; we are asking for a government which stems from the parliament.We believe fighting corruption is what should have been carried out first.We are also asking for the upper house to be elected. We are asking for the secret service police to stop interfering in the civilian and political life. We are asking for the reform of the electoral law.VO: Unions in Jordan have led street protests in the past months and have joined calls for government reform and an end to price hikes.Jamal Hussein, Lawyer, ActivistThe unions play a clear political role and they are trying to put pressure on the political parties. and there was formed one of the strongest organizations across the nation, and an important opposition force against the regime.The teachers’ union is considered the largest union in Jordan. It was taken by force from the regime’s control by using public pressure, staging street protest and sit-ins. There was also a two-week teachers’ strike across the country.They have also played an important role in speaking out against the price hikes by going on strike for two days, and are putting lots of pressure on the regime.The movement benefitted from the teachers’ union’s pressure since throughout the last year when the teachers were gaining their rights in the union, a group of teachers came out of this fight more politicized. The teachers started engaging more in the public sphere, and as a result encouraged the youth to challenge leaders of political parties.President of the Health Workers’ UnionJordanians and the unions are against the government’s decision to increase the prices. We are against the economic path we have been headed towards for years, and we are against that these economic woes impact our citizens. The middle class, the poor, the workers and the farmers are most impacted by the price hike. We for reforming the system, and we refuse this decision. We demand the current parliament be dissolved and to form a National Rescue Committee, and to stop this decision immediately. If our demands aren’t met, we will continue making our voices heard.VO: Jordanians have demanded an end to intimidation tactics historically used by state police for stifling dissent. Jordan’s Interior Ministry has reportedly been raiding candidate supporters’ homes to allegedly curb any attempts at vote buying during the elections.Moyad GhowadorAt this moment, the regime represents [el kame7]. This regime does not allow us freedom of expression. We are here at a peaceful protest with a various union groups, and the Darak have been sent to stop us. This regime has driven the Jordanian economy into chaos and borderline bankruptcy.VO: The Islamic Action Front, workers’ unions and leftist groups have all called for a boycott of the parliamentary elections. Protesters say they have little faith these, elections will put an end to corruption, an ailing economy and a heavy handed police state. King Abdullah will continue facing challenges as further cuts in electricity subsidies and public sector benefits are promised to soon secure a $2 billion IMF loan.This is Danya Nadar, for the Real News


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Greta Van Susteren Allows Former Bush Budget Director to Fearmonger Over Debt

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You just gotta love Fox allowing the Budget Director for the administration that blew a mile wide hole in our debt and deficit to come on the air and fearmonger about how we’re going to “become Greece” if we don’t do something to get our spending under control, and talk about making “tough choices” to fix the mess he and his boss George W. Bush helped to create. But that’s exactly what the viewers were treated to on this Tuesday evening’s On the Record With Greta Van Susteren.

Portman was allowed to tell the lie that the Congress supposedly voted on President Obama’s budget. They didn’t as Media Matters explains here. He was also allowed the lie and claim that our current deficit is President Obama’s fault, when, as we’ve explained here repeatedly and more times than I can keep track of, the deficit got as big as it did in recent years primarily due to George W. Bush’s policies as this article explains.

He was also on there pushing for their latest proposal to kick the can down the road on the debt ceiling for a few months, and to withhold Congressional pay if the Senate doesn’t pass a budget, which as TPM and others have noted, may not be Constitutional.

Par for the course for Fox, none of their viewers were made aware of Portman’s background, the lies about Congress voting on the President’s budget, or the real questions about whether their latest gimmick is even Constitutional. Instead, we were treated to more nonsense about how President Obama isn’t “leading” unless he decides to gut our social safety nets and balances the budget on the backs of the working class, the elderly and the poor — because God knows we can’t do anything foolish like raising taxes or getting rid of any tax loopholes for those wealthy “job creators.”

If there’s anything you can count on over at Fox, it’s someone being rewarded for governing badly and for them to make sure that their viewers have absolutely no reminder about anything that’s happened in our recent history and that the Bush presidency is washed from their memories.

Shocking: Reporting Factory Farm Abuses to be Considered “Act of Terrorism” If New Laws Pass

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Three states are the latest states to introduce Ag-Gag laws and lawmakers in 10 other states introduced similar bills in 2011-2012.

Photo Credit: © schankz/ Shutterstock.com

January 24, 2013  |  

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This article was published in partnership with GlobalPossibilities.org.

How do you keep consumers in the dark about the horrors of factory farms? By making it an “act of terrorism” for anyone to investigate animal cruelty, food safety or environmental violations on the corporate-controlled farms that produce the bulk of our meat, eggs and dairy products.

And who better to write the Animal and Ecological Terrorism Act, designed to protect Big Ag and Big Energy, than the lawyers on the Energy, Environment and Agriculture Task Force at the corporate-funded and infamous American Legislative Exchange Council (ALEC).

New Hampshire, Wyoming and Nebraska are the latest states to introduce Ag-Gag laws aimed at preventing employees, journalists or activists from exposing illegal or unethical practices on factory farms. Lawmakers in 10 other states introduced similar bills in 2011-2012.  The laws passed in three of those states: Missouri, Iowa and Utah.  But consumer and animal-welfare activists prevented the laws from passing in Florida, Illinois, Indiana, Minnesota, Nebraska, New York and Tennessee.

In all, six states now have Ag-Gag laws, including North Dakota, Montana and Kansas, all of which passed the laws in 1990-1991, before the term “Ag-Gag” was coined.

Ag-Gag laws passed 20 years ago were focused more on deterring people from destroying property, or from either stealing animals or setting them free. Today’s ALEC-inspired bills take direct aim at anyone who tries to expose horrific acts of animal cruelty, dangerous animal-handling practices that might lead to food safety issues, or blatant disregard for environmental laws designed to protect waterways from animal waste runoff. In the past, most of those exposes have resulted from undercover investigations of exactly the type Big Ag wants to make illegal.

Wyoming’s HB 0126 is the perfect example of a direct link between an undercover investigation of a factory farm and the introduction of an Ag-Gag law. The bill was introduced mere weeks after nine factory workers at Wheatland, WY-based Wyoming Premium Farms, a supplier to Tyson Foods, were charged with animal cruelty following an undercover investigation by the Humane Society of the United States (HSUS). HSUS activists videotaped workers kicking live piglets, swinging them by their hind legs and beating and kicking mother pigs. Charges were filed in late December. In January, State Rep. Sue Wallis and Senator Ogden Driskill introduced Wyoming’s Ag-Gag bill which would make it a criminal act to carry out investigations such as the one that exposed the cruelty at Wyoming Premium Farms.

Wallis and Driskill both have ties to Big Ag. Wallis was the subject of a conflict-of-interest complaint filed in 2010 by animal welfare groups. The groups accused her of improper and fraudulent abuse of her position as a legislator after she introduced a bill allowing the Wyoming Livestock Board to send stray horses to slaughter. At the time she introduced the bill, Wallis also was planning to develop a family-owned horse slaughter plant in the state. Both Wallis and Driskill are members of the Wyoming Stockgrowers Association. Driskill has accepted political contributions from the livestock industry and Exxon Mobil, a member of ALEC.

Most of the Ag-Gag laws introduced since 2011 borrow the premise, if not the exact language, from model legislation designed by ALEC. ALEC’s sole purpose is to write model legislation that protects corporate profits. Industry then pushes state legislators to adapt the bills for their states and push them through. The idea behind the Animal and Ecological Terrorism Act is to make it illegal to “enter an animal or research facility to take pictures by photograph, video camera, or other or other means with the intent to commit criminal activities or defame the facility or its owner.”

The Biggest Bubble In History: Fraud

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Forget the Housing, Bond or Derivatives Bubbles … Fraud Is the Biggest Bubble of All Time

The housing bubble which burst in 2007 or so was the biggest bubble of all time.

Many argue that the bubble in U.S. bonds has surpassed the housing bubble as the largest ever.

Of course, given that the derivatives market is more than a thousand trillion dollars, and that is is backed by thousands of times less collateral, a good case can be made for arguing that derivatives are the biggest bubble.

But if you really think about it, the largest bubble in history is fraud, because it includes all of the above and more.

Specifically, the housing crisis was caused by fraud. The government encouraged fraud, and helped cover it up.

Huge swaths of the derivatives market are manipulated by fraud. See this, this, this and this. But instead of cracking down on the fraud, the government is backing it.

And the bubble in bonds was caused by super-low interest rates. See this, this and this.

Low interest rates — in turn — are caused by the government’s zero interest rate policy and quantitative easing.

And how did the government sell these programs? By saying that they were necessary to help the economy and create more jobs.

But in reality, zero interest rate policy is just another stealth bailout for the big banks. And quantitative easing only helps the super-elite … and hurt the economy and the little guy (Bernanke knew back in 1988 that QE doesn’t work for its advertised purposes.)

In other words, the government’s low interest rate policies were based upon a fundamental misrepresentation as to their purpose and probable effect.

Indeed, experts say that all bubbles are enabled by fraud.

But there are signs that the fraud bubble is collapsing.

Trust is falling to all-time lows as to many government and private institutions. Why? Because institutional corruption is so rampant that it is becoming obvious to everyone from Joe Sixpack to amateur and sophisticated professional investors.

While liberals tend to distrust big corporations and conservatives tend to distrust the federal government, we all agree that the malignant, symbiotic relationship between the two is the root problem. Indeed, when government and corporatism merge, it is hard for anyone to trust what is going on.

When government officials are as corrupt as the criminal enterprises they are suppose to regulate, even the mainstream media can’t ignore it any longer.

And the people lose all trust in the system.

No matter how hard the boys work to cover up their ongoing misdeeds, the fraud bubble may finally be popping …

Patriot missiles to be stationed in Turkey

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German military vehicles carrying equipment for NATO’s Patriot missiles unload at Turkey’s Mediterranean port of Iskenderun, January 21, 2013.

NATO’s Patriot missile batteries shipped to Turkey are set to be deployed in military bases in the southeastern provinces of Diyarbakir and Batman.

Some 100 Patriot missiles, unloaded at Turkey’s Mediterranean port of Iskenderun earlier in January, will be stationed at the air bases in the two provinces bordering Syria.

Some 360 Dutch troops stationed in Incirlik Air Base near the southern city of Adana and led by Colonel Erik Abma will operate the batteries.

The NATO missile systems are slated to remain in Turkey for a six-month period, which the military alliance may extend.

Meanwhile, Airborne Warning and Control System (AWACS) aircraft have been deployed to the Konya 3rd Main Jet Base Command.

Turkish Prime Minister Recep Tayyip Erdogan has said at least three US-made Predator drones will be deployed to guard NATO’s radar base in the village of Kurecik in Malatya Province.

The NATO military alliance approved a request by Turkey for the deployment of Patriot surface-to-air missiles along the border region with Syria on December 4, 2012.

The Turkish people have held several protest demonstrations against the military plan. The Syrian government has also censured the move, calling it another act of provocation from Ankara.

MRS/HMV

Reports of atrocities emerge as France escalates Mali war

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mali

Only thirteen days after starting a war in Mali, France is massively escalating its troop presence there, even as reports emerge of escalating ethnic killings by French-backed Malian troops.

On Tuesday the Malian regime extended the state of emergency declared on January 11 for three months. At the same time, French and Malian troops set up positions in central Mali around the strategic airfield at Sévaré.

The airfield was reportedly the main initial target of the French intervention. Paris wanted to keep it from falling into the hands of the northern-based Malian opposition, so France could use the airfield to fly troops and equipment into the region.

French forces are also blocking journalists from reporting from the war zone, to slow the stream of reports of killings of and atrocities against civilians by French and French-backed Malian forces. In Sévaré, at least 11 people were killed at a military camp, near its bus station and its hospital. “Credible information” pointed to about 20 other executions, with the bodies “buried hastily, notably in wells,” the International Federation for Human Rights (FIDH) reported.

A witness said the Malian army “gathered all the people who didn’t have national identity cards and the people they suspected of being close to the Islamists to execute them, and put them in two different wells near a bus station.” The soldiers allegedly poured gasoline into the wells and set them ablaze to hide the evidence.

Residents of Mopti in central Mali said that the Malian army had arrested, interrogated, and tortured innocent civilians, because the army thought that they were involved in the rebellion. Many Tuareg, who originally controlled the north, fled south when the Islamists took over and are being singled out for reprisals. Amnesty International claims to have evidence of extrajudicial killings of Tuareg civilians, the indiscriminate shelling of a Tuareg camp, and the killing of livestock.

A woman of the Fulani ethnic group described her situation: “The army suspects us–if we look like Fulani and don’t have an identity card, they kill us. But many people are born in small villages and it’s very difficult to have identification. We are all afraid. There are some households where Fulanis or others who are fair-skinned don’t go out any more. We have stopped wearing our traditional clothes–we are being forced to abandon our culture, and to stay indoors.”

The Malian army has a record of ethnic killings. Last September a truck with eighteen preachers from Mauritania crossed the border at Diabaly on their way to Bamako for a conference. Though none were armed and they had papers indicating their mission, all were massacred by the troops manning the border checkpoint.

Asked about abuses committed by Malian forces in an interview Wednesday on France 24 television, French Defense Minister Jean-Yves Le Drian cynically commented, “There’s a risk.”

Amateur cell phone videos on the internet show huge blasts and fireballs in living areas, and bloggers from Mali are reporting numerous casualties. The United Nations has reported that thousands of people have been forced from their homes over the past ten days. An estimated 230,000 people are now displaced across the country. According to Melissa Fleming, a spokeswoman for the United Nations’ refugee agency, the violence could soon displace up to 700,000 in Mali and around the region.

The Norwegian Internal Displacement Monitoring Center reported that people in the north were increasingly heading into the desert, as Algeria had closed its borders. Many are fleeing on foot because they cannot afford boats or buses.

Sory Diakite, the mayor of Konna, who fled to Bamako with his family after a French raid, described the bombing of his town. He said that during the assault in the first days of the war, people “were killed inside their courtyards, or outside their homes. People were trying to flee to find refuge. Some drowned in the river. At least three children threw themselves in the river in order to avoid the bombs. They were trying to swim to the other side.”

The constant increase in the number of soldiers, the massive build-up of ever-deadlier weapons and the increasing willingness of its allies to step up their support signify that such violence will only continue to escalate.

France is deploying more soldiers and more high-tech weaponry. Some 2,150 French soldiers are in Mali, and their number will rise to 5,000 by the end of the month.

The African-led International Support Mission to Mali (AFISMA) will comprise almost 6,000 soldiers, instead of the initially planned 3,300 soldiers, costing around $500 million.

The Gazelle helicopters that participated in the first wave of French air attacks are being replaced by Tiger helicopter gunships, which have a longer range and greater firepower. “Cheetah” units based in France have been placed on alert, including a number of Leclerc heavy tanks and units armed with truck-mounted 155-millimeter artillery pieces.

So far nearly 1,000 African troops from Benin, Nigeria, Togo and Burkina Faso have arrived in Mali. Senegalese troops and up to 2,000 soldiers from Chad are on the way. Their transport is being provided by France’s allies: Denmark, Germany, Belgium, the Netherlands, Spain, the United Emirates, and Canada. Italy approved sending 15 to 24 military instructors to work alongside the European Union (EU) in training Malian forces and also agreed to provide logistical support with at least two cargo planes.

US forces began their mission in support of the Mali war on Monday. Five four-engine C-17 planes took off from the Istres-LeTubé airbase in southern France, loaded with French cargo which they dropped off in the Malian capital, Bamako.

According to German news magazine Der Spiegel, British forces were on “high alert” for possible deployment in Mali, in case France asks for help. The British foreign ministry denied the report, however.

Yesterday French Rafale and Mirage jets bombed targets near Gao, Timbuktu and Ansongo, a town near the border with Niger. Col. Oumar Kande, ECOWAS military and security adviser in Mali, said, “It is possible we will win back Timbuktu, Gao, and Kidal in a month, but it is impossible to say how long the overall war will last.”

Kande’s words are in line with remarks by British Prime Minister David Cameron, who said that the Mali war might last years or decades.

A Prescription for Injuries of the Soul: Healing the Earth Healing Us

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(Photo: Pimthida via Flickr)Most people suffer from a sense of moral failure over environmental matters. The mismatch between being told to change our light bulbs when the planet seems in free fall–melting ice caps, polluted water supplies, drought–creates a needling angst and anxiety.  We know that we are in deep trouble, but feel that there is little we–or anyone–can do individually. Anne Karpf writing about climate change in the Guardian last year said “I now recycle everything possible, drive a hybrid car, and turn down the heating. Yet somewhere in my marrow I know that this is just a vain attempt to exculpate myself — it wasn’t me, guv.”

To fully acknowledge our complicity in the problem, but to be unable to act at the scale of the problem creates cognitive dissonance. And this “environmental melancholia,” results in hopelessness. It is not apathy we are feeling, but sadness that can be eased only with taking actions, mostly collective, scaled to the problems we face.

The moral failure and the inability to act leads to what some now identify as a moral injury, which is at the root of some post-traumatic stress disorders, or PTSD. The U.S. military has been investigating the causes of PTSD because the early interpretations of it being fear-based didn’t match what psychologists were hearing from the soldiers themselves. What psychologists heard wasn’t fear, but sorrow and loss. Soldiers suffering from PTSD expressed enormous grief over things like killing children and civilians or over not being able to save a fellow soldier. They discovered that at the core of much of PTSD was a moral injury, or a soul wound resulting from the dissonance between their actions and their moral code.

The moral injury stemming from our participation in destruction of the planet has two dimensions: knowledge of our role and an inability to act. Our culture lacks the mechanisms for taking account of collective moral injuries and then finding the vision and creativity to address them.  The difference between a soldier’s moral injury and our environmental moral injuries is that environmental wounds aren’t a shattering of moral expectations, but a steady, grinding erosion–a slow-motion relentless sorrow.

Environmental lawyer Bob Gough says that he suffers from pre-traumatic stress disorder. Pre-traumatic stress disorder is short hand for the fact that he is fully aware of the future trauma, the moral injury that we individually and collectively suffer, the effects on the Earth of that injury, and our inability to act in time.  Essentially pre-traumatic stress disorder, the environmentalist’s malady, is a result of our inability to prevent harm.

Much of the environmental and health messaging speaks to individuals. Stop smoking, get more exercise, switch from incandescent to LED light bulbs, etc.  Sure, we need to do all that we are able as individuals—that is part of preventing any further damage to the planet and our own souls.  But that isn’t enough. These are not things we can address individually. We have to do them together.

Healing the moral injury we suffer individually and collectively from our participation in destruction of the planet will require strong intervention in all spheres of life. Actions like creating a Cabinet level office of the Guardian of Future Generations or 350.org’s campaign for colleges to divest of oil stocks, or revamping public transportation are beginning steps. Can we think of a hundred more bold moves to make reparations and give future generations a sporting chance? Our moral health, our sanity–and our survival–depend on it.

‘Iran, Oman drills a model for region’

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An Iranian lawmaker says the recent joint rescue and relief drills staged by Iran and Oman in the Persian Gulf can set a good model for military exercises by other regional countries.

Seyyed Baqer Hosseini, member of Iran Majlis National Security and Foreign Policy Committee, said on Wednesday that the drills, conducted in Iran’s territorial waters south of Hormuz Island on January 22, can pave the way for effective cooperation among Persian Gulf littoral states to provide security in the strategic waterway.

Hosseini added that regional states should work together to maintain security in the Persian Gulf and the entire Middle East.

The lawmaker further noted that Iranian officials have frequently stressed the need for convergence among Persian Gulf littoral states to prevent interference of transregional countries, and that Muslim states should establish security and stability on their own.

He dismissed interference of the Western states in the Persian Gulf and Middle East issues as “unjustifiable,” noting that Tehran has invited regional states to conduct joint drills with Iranian naval forces.

Tehran and Muscat have agreed to carry out joint naval drills every year, which aim to enhance the two countries’ readiness for providing relief aid and conducting rescue operations, boost regional cooperation, and pave the way for the exchange of experiences.

The two countries staged joint naval relief and rescue drills in February 2011, in which four Omani vessels, two fighter jets and one maritime helicopter as well as four Iranian naval ships had participated.

Iran’s Navy has been also multiplying its naval presence in the international waters since 2011, deploying vessels to the Indian Ocean and dispatching two ships via the Suez Canal to the Mediterranean for the first time in February 2011.

The Islamic Republic has extended a public invitation to the regional states to conduct joint naval drills with Iranian forces.

MP/SS

AlterNet Comics: Jen Sorensen on Lance Armstrong Having to Live Like the Rest of Us Losers

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How the mighty have fallen.

January 24, 2013  |  

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Security strike staged in German airports

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Passengers wait in Cologne airport after a strike by security personnel led to flight cancellations and delays, January 24, 2013.

Travelers in Germany have been left stranded after security workers at two airports in the country went on strike over demands for higher salaries.

Services at Germany’s airports in Dusseldorf and in Cologne-Bonn were disrupted on Thursday after the security personnel launched a daylong strike to protest their low pay.

The protest led to hundreds of cancellations and significant delays, causing widespread disruption to the domestic air transport network. Both airports reportedly have only one in every 20 security checkpoints open.

The United Services Union in Germany, also known as Verdi, called for the strikes to start at 4:00 a.m. local time (0300 GMT) and end at midnight. The union said the industrial action holds no responsibility for the cancellation of the flights.

Over 19,000 passengers on 176 flights have been affected, with only 80 people passing security checkpoints every hour.

According to airport information, Dusseldorf – Germany’s third biggest airport – had 94 flights cancelled in the morning and Cologne-Bonn had 12 flights cancelled in the same period.

Union officials have planned another strike to take place on Friday.

Verdi says around 80 percent of security workers are in the lowest pay group and they demand a pay rise from just over eight euros per hour to 16 euros per hour.

In the last two months, strikes over the pay scale have been frequent in Germany. On January 18, Verdi called for a daylong strike at Hamburg Airport and it staged another strike last year on December 10.

GVN/HMV

Police Accused Of Overstating Crime Reduction Targets

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Fears have been fuelled that budget cuts and pressure to hit targets have prompted police officers to exaggerate the rate at which crime has fallen in the last five years.

Police records have appeared to “overstate the true rate at which crime has been falling” by failing to take into account 400,000 offences, a new study found.

A target culture was behind the discrepancy, the Office for National Statistics (ONS) said, as police officers come under an “informal pressure” to slash crime.

police officer

Police under pressure to reduce crime figures

Labour called for reassurance that spending cuts were not behind the fall in recorded offences – but the Coalition insisted police forces had reduced crime on lower budgets.

The level of police-recorded crime in the year to the end of September fell by 7% or 290,000 to 3.8 million offences, the ONS said, while overall crime against adults fell by 8% or 820,000 to 8.9 million incidents.

A review was launched after alarm bells were sounded over the difference in the rate at which crime was falling in the two key sources of crime figures in Britain.

Both the Crime Survey of England and Wales (CSEW), which surveys households, and the National Crime Recording Standard (NCRS), which measures police-recorded crime, showed a similar fall in offences – around 11% – between 2002/03 and 2006/07.

But after this time, police-recorded crimes started falling at almost twice the rate than in the CSEW.

John Flatley, head of the ONS crime statistics and analysis division, said: “We’re not saying police recorded crime data is incorrect to show that crime is falling.

“We are right in saying that it looks like from this analysis that the police data is showing a faster fall than is evidenced by the survey of household experience.”

Mr Flatley said anecdotal evidence showed this was down to “the culture and informal pressure of having targets and expectation that police will continue to cut crime”.

He went on: “Some lower level crimes, there is a judgment call to be made as to whether the incident attended to by the officer is actually a crime in law or a low level incident that would not get into the crime figures.

“It’s possible in an era of targets to cut crime and pressure on officers to see a reduction in crime that their judgment will sway more to including that in the lower level category.”

The additional analysis showed that police-recorded crime had fallen by 41% since 2002/03, compared to a 26% fall in crimes in the CSEW.

And in the last five years, the number of recorded crimes fell by 960,000, while the crime survey showed a fall of 560,000 offences.

This suggests that some 400,000 crimes were not recorded.

Shadow policing minister David Hanson called for Her Majesty’s Inspectorate of Constabulary and Home Office to look at the difference in police-recorded crimes.

He said: “The continued reductions in crime, which have been going on for well over a decade now, emphasise the good work police have been doing for a number of years now.”

He added: “The Home Secretary should examine urgently whether, as the ONS suggests, the cuts to police budgets mark a return to fewer crimes being recorded by the police.”

arrest

Overall crime is at its lowest level since the CSEW began in 1981, while police-recorded offences dropped to the smallest number since 2002/03.

Crime fell across all headline offences recorded by police in the year to September, the ONS said, with vandalism, burglary and vehicle thefts driving the decline.

Violence against the person offences recorded by police showed a 5% year-on-year decrease, while homicide and attempted murder fell by 10% and 2% respectively.

And anti-social behaviour incidents continued to fall in the period, with 2.4 million cases recorded by the police.

There were some increases in sub-categories, with theft from the person – or pickpocketing – rising 6%, which anecdotal evidence suggested was down to the rise in popularity of hand-held gadgets such as iPhones, mp3 players and tablets.

Staffordshire Police deputy chief constable Douglas Paxton, the Association of Chief Police Officers’ (Acpo) lead on statistics, said the additional study had noted that the quality of crime recording by the UK police remains “amongst the best in the world”.

He said: “Ensuring our data is as robust as it can be has a direct impact on public trust and confidence and we will continue to ensure forces continue to meet the national standard when it comes to recording crimes.”

Crime prevention minister Jeremy Browne said: “Police reform is working.

“We have swept away central targets, reduced bureaucracy and these figures show forces are rising to the challenge of doing more with less.

“Many have achieved significant reductions in crime with reduced budgets.”

Lynne Stewart’s Struggle for Justice Continues

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Numerous previous articles discussed her case, character, and dedication to rule of law principles. She’s an internationally recognized human rights lawyer.

She tirelessly worked for justice. She devoted her life and work to upholding principles too important to reject. She knew the risks and took them. She did so because it matters.

For 30 years, she defended America’s poor, underprivileged, unwanted, and forgotten. Without advocates like her, they never have a chance for due process and judicial fairness.

She was targeted for representing clients prosecutors want convicted. One case made her especially vulnerable.

At former US Attorney General Ramzy Clark’s request, she joined his Sheik Omar Abdel Rahman’s defense team.

In 1995, he was wrongfully convicted of seditious conspiracy, solicitation of murder, solicitation of an attack on American military installations, conspiracy to commit murder, and conspiracy to bomb in connection with the 1993 World Trade Center attack.

He was bogusly accused. He was innocent of all charges. It didn’t matter. He never had a chance. Prosecutorial injustice framed him. It’s standard Justice Department practice.

Defending Rahman got Lynne spuriously charged with:

  • “conspiring to defraud the United States;
  • conspiring to provide and conceal material support to terrorist activity;
  • providing and concealing material support to terrorist activity; and
  • two counts of making false statements.”

Prosecutors claimed she violated US Bureau of Prisons Special Administrative Measures (SAMs). A gag order on Rahman was included.

Doing so prohibits discussing topics the Justice Department (DOJ) rules outside “legal representation.” It also inhibits legal defenses.

Ramsey Clark issued press releases like Lynne. She alone was targeted. At issue was silencing a powerful legal advocate. Tactics included disbarring and imprisoning her unjustly.

Doing so warned other lawyers not to defend clients Washington wants convicted.

Her trial mocked justice. It was orchestrated to convict. It reflected the worst of McCarthy-like tactics. Inflammatory terrorist images were displayed in court.

Jurors were manipulated and intimidated. Lynne was called a traitor with radical political views. Heated rhetoric substituted for truth and full disclosure.

On February 10, 2005, she was convicted on all counts. She was automatically disbarred.

On October 17, 2006, she was sentenced to 28 months in prison. At the time, she remained free on bond pending appeal before the US Court of Appeals for the Second Circuit.

In November 2009, she was ordered to surrender forthwith and report to prison.

She appealed and lost. Second Circuit justices upheld her conviction. They claimed 28 months was too lenient. They remanded her case back to district court Judge John Koeltl.

Pressure got him to increase Lynne’s sentence to 10 years. She hopes Supreme Court justices will afford her what lower courts denied.

On December 30, she sent a New Year’s message. She addressed her legion of supporters. She approached 2013 with “fear and trepidation.”

She maintains “indefatigable hope.” She continues struggling against “those dread tentacles of corporatism (that) try to strangle us.”

It’s no easy task fighting back. Lynne’s imprisoned for trying. She discussed her “personal challenges.”

She’s a breast cancer survivor. It reemerged. It’s spreading. It’s treatable. More on that below.

She remains focused. She’s determined not to allow “any such problem deter (her) from someday getting released” and being free.

She reflected on her “strong will.” She calls it the “focus that you all infuse me with!!”

She commented on her formidable challenge in getting her “case before the Supreme Court. Will they deign to hear us,” she asked? Will we advance the sunlight or only increase the shadows on our constitutional rights?”

“We can only strive to present our issues in the best possible way and ‘fight like hell’ ” for justice. There’s “no predicting results, but in prison, HOPE is the only currency.”

On October 8, Lynne added another year. She’s 73. She’s “counting down (her) 74th year,” she said. Her husband and lifelong human rights partner Ralph is 79.

Often her final comment is vintage Lynne. She urges everyone to join the struggle for justice. “Organize — Agitate, Agitate, Agitate!”

“Love Struggle!”

Write her and others in America’s gulag. She can be reached as follows:

Lynne Stewart #53504-054

Federal Medical Center, Carswell

PO Box 27137

Ft. Worth, TX 76127

Lynne’s health compounds her problems. On January 23, Press TV headlined “Jailed US lawyer of blind Egyptian cleric denied cancer treatment,” saying:

It reemerged. It “spread to her lungs and upper back.”

“She “require(s) immediate expert treatment.” She requested transfer to a New York hospital. She’s been successfully treated there before. She was denied.

She’s confined to prison-style treatment. It’s mediocre at best. Authorities want her silenced. They don’t care if she lives or dies.

Incarceration harms human health. Prison conditions aren’t compatible with healthy living. Serious illnesses aren’t adequately diagnosed or treated. Some are entirely ignored.

Physicians for a National Health Program (PNHP) discussed “The Health and Health Care of US Prisoners.”

Few inmates with “active medical problems” are monitored. Mental health problems are “ubiquitous.” Treatment is deplorable.

“Almost a million inmates report having 1 more chronic medical (problems), and their access to medical care appears to be poor.”

“Providing inmates with health care is politically unpopular. Former Surgeon General Richard Carmona said Bush administration officials blocked release of his report titled, “Call to Action on Corrections in Community Health.”

They did so fearing it “would increase government spending on inmates.” PNHP stressed that “constitutional, public health, and human rights imperatives of improving health care in prisons and jails are clear.”

In January 2009, PNHP headlined “US prisoners sicker than believed and have poor access to care.”

An American Journal of Public Health article discussed a first-ever nationwide study. It said about 40% of America’s prison population (over 800,000 inmates) have chronic medical conditions.

They include diabetes, heart and kidney problems, asthma, and cancer. Researchers found “sick prisoners have poor access to care.” Many in need aren’t treated. Others get deplorable care.

Compared with comparably aged Americans, the incidence of inmates’ illness is much higher. Treatment is sub-standard.

“Inmates with medical problems like diabetes, which requires drug treatment (daily), often had their vital medications stopped after their incarceration.”

Lead study author, Dr. Andrew Wilper said:

“A substantial percentage of inmates have serious medical needs. Yet many of them don’t get even minimal medical care. These prisoners are denied their constitutionally guaranteed right to care.”

Lynne is affected like others. Her struggle for good health accompanies her appeal to be set free. Her treatment reflects police state justice.

It symbolizes what’s wrong with America. It spurns rule of law principles. It imprisons its best and brightest. It’s contemptuous of fundamental civil and human rights. Wealth, power, privilege and dominance alone matter.

Ordinary people are largely denied. Prison inmates lose all rights. Constitutionally guaranteed ones don’t matter. Ill inmates needing vital care get sub-standard treatment or none.

Change more than ever is needed. Great struggles are won in small steps. Supporting right over wrong matters. Mass public outrage is needed. Activism gets results. There’s no other way.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net. 

His new book is titled “Banker Occupation: Waging Financial War on Humanity.”

http://www.claritypress.com/LendmanII.html

visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

 http://www.progressiveradionetwork.com/the-progressive-news-hour

http://www.dailycensored.com/lynne-stewarts-struggle-for-justice-continues/

What Will Happen in Palestine Friday Morning?

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A protester erects a flag at a Palestinian protest camp in early January. (Photo: Olivier Fitoussi)Last Friday, Palestinian peace activists created the village of Bab al-Karama on the lands of Beit Iksa village to prevent their confiscation by the Netanyahu government.

The previous Friday, Palestinian peace activists created the village of Bab al-Shams near the village of Al Zaim to block the confiscation of Palestinian land by the Netanyahu government.

What do you think is going to happen in Palestine this Friday?

Economists like to say that the only thing that you can’t predict is the future. But I think that the odds are very good that on Friday, a new Palestinian village is going to be established to block the confiscation of Palestinian land by the Netanyahu government.

If that happens, will American media report it?

If a tree falls in the forest, does it make a sound?

To be effective, a strategy of nonviolent resistance to injustice requires an audience.

Sometimes Western pundits have asked: where are the Palestinian Gandhis? But when Palestinians have engaged in nonviolent protest and have been suppressed by Israeli occupation forces, Western pundits have been largely silent. The pundits’ words communicate one thing; the choice by Western media to largely ignore nonviolent Palestinian protest movements communicates the opposite.

Thanks to movies like Budrus and 5 Broken Cameras, the story of nonviolent Palestinian resistance to land confiscation is reaching a new group of Americans. That’s a fantastic development. But when civil rights marchers were beaten on the Edmund Pettus Bridge on Bloody Sunday, Americans didn’t have to wait for a movie to find out about it. It was big news right away.

Could Americans force the story of Palestinian nonviolent resistance to land confiscation onto the agenda of mainstream U.S. media?

There is a precedent that may be relevant. When Occupy Wall Street began, it was ignored at first by mainstream media. To find out what was going on, you had to go to social media like Twitter. When the story became well-established in social media, mainstream media had to take notice.

What if we raised an army of thousands of Americans who pledged themselves in advance to one simple task: when the news breaks of a new Palestinian village established to block land confiscation by the Netanyahu government, members of this army agree that they are going to be notified, and then they are going to spread this news on social media.

Thousands of Americans have already signed our pledge. You can join them here.

“Green Socialism” and the Left

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“Another grand, left-wing concept with an adjective… Shouldn’t we rather work on concrete social-ecological projects — on initiatives for conversion, a process of ‘energy transition,’ or free public transport?” Undoubtedly, many problems of the left have resulted from its tendency to create grand utopias and attempt to bring social reality in line with them. Transformation starts with concrete entry projects, but where does this road go to? What is the common ground, the common direction of manifold initiatives? Ultimately, we need an antidote to pragmatism — American activists call it a ‘vision.’

What does this imply for green politics? One of the core tasks of left-wing politics is to constantly work on connecting the social and the ecological question. The left is credible on the social question — and there are promising attempts to become more convincing on ecology, even if the mainstream media does not seem to notice this much. There is the notion of ‘social-ecological transformation,’ which belonged to the agenda of the green parties in the 1980s. Today, it is used from the left as a paradigm for the ‘mosaic left’ in formation. But how can we make sure that it remains rooted in a counter-hegemonic project? How far is the profile of the socialist left different from that of Friends of the Earth? It is surely right to build bridges between diverging approaches to social change, but in the process, contradictions are often covered up, and a debate on contentious issues like property and the state is avoided. In this article, we are experimenting with the concept of ‘green socialism.’ We want to discuss whether it could fill the void of a left-wing, ecological, feminist imagination.

Background

If we consider the present relations of forces, the ‘green’ question does not appear to be a contentious issue — ‘socialism’ is what is controversial. The idea of ‘eco-socialism’ failed because its intervention coincided with deep ruptures in global history, namely the collapse of state socialism and the rise of neoliberalism. Socialism was no longer en vogue; it was seen as an ossified and defeated project. The eco-socialist current of the left shrank into a friendly cult, which emphasized what ought to be but rarely intervened in concrete social-ecological struggles. Around the same time, green issues became fashionable, not least because of the 1992 global summit in Rio de Janeiro. There was a “passive revolution” (Gramsci) divorcing the ecological from the social question. The ecological question was absorbed into neoliberal strategies of managing globalization. This happened through the institutionalization of environmental policy and global climate summits, as well as through the integration of green parties and NGOs into mainstream politics. From an ecological standpoint, the successes of the passive revolution were limited; there is an unbroken trend toward deepening ecological and social crises; the ecological crises have accrued considerable social costs and vice versa. Consequently, ‘green socialism’ has to be linked up with concrete struggles such as struggles over energy production and projects of conversion based on a ‘just transition.’

In the midst of the great crisis of neoliberalism and the authoritarian imposition of austerity throughout Europe, the prospect of a transition to ‘green capitalism’ (Fücks/Steenboom 2007; for a critique see Candeias/Kuhn 2008) or a ‘green economy’ (Heinrich-Böll-Stiftung 2012; for a critique see Brand 2012) raises the hopes of many people. The underlying political strategy focuses on channelling investment toward a process of ‘energy transition’ and kick-starting ecological modernization with the help of new technologies and an accumulation strategy that is supposed to create millions of jobs. The notion of a ‘green economy’ promotes growth and an increase in exports; it is not about limiting the use of resources. In contrast to older approaches, which were centred on ‘sustainability,’ it does not aim to overcome the contradiction between the economy and ecology. Rather, it advocates the commodification of nature and environmental protection, which means that the political management of the ecological crisis becomes a factor in, and a driver of, capitalist accumulation. In sum, the ‘green economy’ approach is about reproducing capitalist hegemony by taking on board ecological interests — it represents an elite consensus garnished with the vague hope that there will be a few new jobs.

Recently, the predominance of the politics of austerity in Europe has restrained the momentum behind the push for a green economy. And yet, there are debates whether the ‘growth components’ of the European Fiscal Compact should include incentives for, and investment in, ecological modernization. In this context, capitalist interests converge with those of social democracy and the trade unions (and this even applies to clearly left-wing appeals such as “Founding Europe Anew!,” which emerged out of the German trade union movement).

‘Green socialism’ is about taking a stand against — not for a long time realized — ‘green capitalism.’ The concept is about linking up a range of interests and movements in the name of “revolutionary Realpolitik,” ensuring that “their particular efforts, taken together, push beyond the framework of the existing order” (Rosa Luxemburg, Marxist Theory and the Proletariat). In the process, many of the old socialist themes — e.g., redistribution, power and property, planning and democracy — are updated and linked up with new issues. It is necessary to link ‘green socialism’ to real contradictions and conditions — to real social forces and movements that are tackling different issues, getting involved in different conflicts and developing concrete, experimental practices.

The Example of Redistribution

Redistribution is a key aspect of any kind of left-wing politics. It does not figure at all in the present conceptions of a ‘green economy’ and only plays a subordinate role in the project of a ‘Green New Deal’ even in times of austerity. This suggests that the issue is not taken seriously. For the German Green Party, softening the demand for redistribution is an act of “being straight” with the population, they say. From the neoliberal point of view, the debts of the financial institutions bailed out by the state have to be serviced. Social Democrats and Greens tend to go along with this: they want to regain the “trust of the markets,” which is why most of their party organizations in Europe have agreed to the ratification of the European Fiscal Compact. The pact will not only bring a new wave of ‘bottom-up’ redistribution, but it will also exacerbate the economic crisis and drive entire countries into depression. Importantly, it will not lead to a permanent reduction in debt.

It is necessary to discuss the illegitimate debt weighing down on many European countries. This issue requires democratic consultation and decision-making and serious attempts to design a procedure for a debt audit (cf. Candeias 2011b). A comprehensive cancellation of debt, comparable to a currency reform, would be needed — not just for Greece. This should be combined with a just tax policy based on forcing the capital — and asset-owners to contribute more to financing the public sector, which would be an act of returning some of the social surplus product to the general public. This would put a stop to processes of “bottom-up” redistribution and open spaces for a politics based on social-ecological concerns. The people in Europe are prepared for a political intervention along these lines because they are currently exposed to the existential threat posed by debt. Numerous forces from civil society agree to it, for example the CDTM (the Greek campaign for a debt audit, cf. LuXemburg 2/2012) and left-wing parties like SYRIZA and Izquierda Unida. These organizations intervene in the current wave of European protests against the effects of the crisis and demand a debt audit, the taxation of assets, a financial transactions tax, a levy on banks etc.

The Socialization of Investment

Over the medium-term, it is necessary to socialize the investment function, which is an old Keynesian demand. Who in society should determine the use of (physical and social) resources, and who should decide which types of work are socially necessary? The market — purportedly the most efficient mechanism for the allocation of investment — has embarrassed itself. The over-accumulation of capital is regularly producing financial bubbles, followed by the destruction of capital and jobs. At the same time, the number of sectors of social reproduction that are deprived of funding and neglected until they collapse is constantly increasing. Childcare, education, environmental protection, the general infrastructure and public services are all affected. The “green economy” focuses on commodification and the market. Yet the market takes too long to resolve problems, and the big corporations behind “fossil capitalism” want to get a foothold in the “green economy” at the same time as keeping their fixed capital.

“

What is needed is financial regulation, the nationalization of “systemically relevant” banks, a network of public banks, and the introduction of participatory budgeting at all levels of society. The socialization of investment and participatory investment decisions are two of the preconditions for a left-wing and socialist project of structural transformation. ”

There will not be a smooth passage to a restructured economy: it is impossible to meet the challenge of reducing greenhouse gas emissions by 80 per cent and catapulting the entire economy from the 150-year old age of “fossils” into the “solar future” without ruptures and crises. If the transition is pursued with tenacity, it is unavoidable that some of the old branches of industry and their capital will come under attack, which in turn will trigger resistance. If the markets prove incapable of ensuring investment, this has to become, to a much stronger degree, a public project. What is needed is financial regulation, the nationalization of “systemically relevant” banks, a network of public banks, and the introduction of participatory budgeting at all levels of society. The socialization of investment and participatory investment decisions are two of the preconditions for a left-wing and socialist project of structural transformation. Without them, the gains made through successful policies of redistribution can be reversed easily.

Reclaiming the Public Sphere

It is necessary to transform the mode of production and living. This should not be done through the commodification and privatization of natural resources, but through the preservation of the universal and public character of the natural commons and other public goods, and through the expansion of collective public services that are cheap and eventually free. For example, free public transport networks should be expanded while subsidies for car-makers should be stopped. Green socialism focuses on the public sector; it is about “remunicipalizing” key parts of the infrastructure and guaranteeing democratic decision-making on issues concerning the transformation of the mode of production and consumption. Moreover, it is based on promoting collective forms of consumption rooted in the social infrastructure and universal, solidarity-based forms of social security. Demanding their expansion would also allow us to respond to the fixation of some left-wing trade unionists on wage increases and material consumption — and would do so without forcing us to get involved in debates on the need to rein in consumption. Besides, an expansion of the public sphere not based on commodification would also amount to markets and processes of privatization being pushed back.

In contrast, the idea of a “green economy” favours technological fixes based on private property, for example large-scale projects such as Desertec,[1] huge offshore wind parks, and monopolized, transcontinental super-grids for long-distance energy exports. Strong fractions of capital are already gathering behind the project. Their strategies undermine the potential for de-centralization inherent in the new technologies; they produce “false solutions” that create social-ecological conflict.

In light of this, the demands of social movements and local initiatives have started to converge with those of left-wing politicians operating at the local and the regional level. Both sides are fighting against attempts by big corporations to impose a process of “energy transition” from above; they are advocating de-centralized, local solutions, for example the remunicipalization of services of general interest and the establishment of energy cooperatives and bio-energetic villages. A variety of movements and groups are using the concept of “energy democracy” in order to create a shared perspective.

Focussing on Economies of Reproduction

For a successful socio-ecological transformation, it is necessary to focus on reproductive needs; existing, growth-oriented capitalist economies should be transformed into “economies of reproduction,” which know both how to limit themselves and to produce new wealth (cf. Candeias 2011a, 96). Sectors that are captured by a broad conception of “reproduction work” or “care work” would be at the heart of this transformation. There would be an expansion of needs-oriented social services such as healthcare, elder care, childcare, education, research, nutrition, environmental protection and others. In these areas, evrybody has been complaining about shortages for years; at the same time, they are the only sectors in the industrialized countries where employment is on the rise. They should remain under public control and should not be exposed to the market. This would be a contribution to the “ecologization” of the existing mode of production (working with people usually does not lead to environmental destruction), and to addressing the crises of wage labour and unpaid reproduction work. A process of transformation along these lines could contribute to shape gender relations in an emancipatory fashion.

This includes redefining and redistributing what we understand by “socially necessary labour” (4in1-perspective by Frigga Haug). This could be achieved by reducing labour time and expanding publicly funded, collective work processes. Such interventions are emphatically not about increasing surplus value, but about reducing the consumption of energy and raw materials, as well as assessing work on the grounds of its contribution to human development and the overall wealth in social relations.

In this context, it is important to see that the poor’s experience of being ruled and exploited by others coincides with the desire for participation and solidarity of the left-libertarian sections of the middle class. There is potential for a convergence of the demands of social movements critical of growth, feminist organizations, and service-sector unions like the German ver.di. Besides, the reorientation toward reproductive needs entails an economic shift toward domestic markets and production. Global chains of production have been overstretched for a long time, and they are wasting resources. This assessment should not be taken as a reflection of “naïve anti-industrialism” (Urban). It is motivated by the need to envisage an alternative production (the term used in the debates on conversion in the 1980s). It would be wrong to assume that continuing the export-oriented strategy of German car makers by promoting electric cars contributes to the emergence of an alternative form of production. After all, the production of the batteries needed for electric cars consumes considerable amounts of energy and raw materials and pollutes the environment because it involves a number of highly toxic substances. Moreover, the switch to electric cars does not do anything about the enormous use of space and the soil sealing caused by the construction of roads. Rather than talking about electric cars, we should discuss how the conversion of car makers into green service providers can be achieved, and how they can be transformed into companies dedicated to facilitating public mobility on the grounds of regionally rooted conceptions of transport.

Against the backdrop of such discursive shifts, trade unions like German metal union IG Metall, which are entangled in the export-oriented strategies of German corporations and in forms of “crisis corporatism,” could start to develop independent strategies. As a result, they would not constantly find themselves at loggerheads with other sections of the “mosaic left” — or appear as victors in a crisis that badly hits sister organizations in other parts of Europe.

A new focus on reproduction could trigger a process of economic de-globalization and re-nationalization. This would contribute to the reduction of current account imbalances and alleviate the pressure on countries in the global south to become part of global chains of production and policies of extraction. They would no longer have to accept the global flows of raw materials and the imperial way of life in the global north. In other words, spaces for independent development would emerge. This would have to be complemented by the development of global planning in the area of raw material and resources, which would guarantee a just distribution of wealth, limit consumption and address reproductive needs. In sum, an economy of reproduction means that people’s needs and the economy in general develop in qualitative not in quantitative ways.

Just Transitions

Transformation is not an easy path but produces a lot of social problems. Therefore the great transformation has to be combined with a just transition. This entails the shrinking of some sectors (e.g., those with a high turnover of raw materials), and the growth of others (e.g., the entire care economy). In any case, economic growth should be de-coupled from material growth. Temporarily, qualitative growth is necessary. After all, various national economies have deficiencies in the area of reproduction, especially those in the so-called global south. As a result, it is counterproductive to operate on the grounds of a simple juxtaposition of “pro-growth” and “post-growth” positions. The recent debates in the global south about Buen Vivir (“the good life,”) and social-ecological modes of development that go beyond western life-styles transcend standard conceptions of growth and modernization. In this context, it also important to avoid false juxtapositions: “Development” and “modern” civilization are not problematic concepts as such. They become problematic once they are bound up with certain forms of capitalist (or state socialist) expansion and the corresponding social relations of nature. At the political level, we have to work on “translating” the experiences of actors from different contexts. This will create opportunities for linking up social-ecological and transformative struggles in the global south with those in the north.

Just transitions are about creating new perspectives for the people worst affected by the climate crisis. But they also take into account the situation of the workers, communities and countries faced with increases in cost of living and a fundamental restructuring of employment, which may be caused by the switch to renewables and the conversion of certain industries, for example the arms industry. In this sense, the initiatives for a just transition try to bring together the movement for climate justice and the labour movement. In any other scenario, social and ecological interests are either played off against each other or the interests of the working classes and of employees more generally (a better environment, a conscious way of consuming, more jobs) are simply not considered. These are some criteria for a just transition to green socialism: It should be assessed whether the measures taken contribute to

  • a reduction in CO2 emissions;
  • a drop in poverty and vulnerability;
  • a decline in income inequality and other forms of inequality;
  • the creation of jobs and the promotion of “good work”; and
  • the democratic participation of individuals.

Obviously, this list can be extended endlessly. Nevertheless, these points are crucial for developing a provisional method of quantitative evaluation, which can be used for political interventions.

Participatory Planning

The need to instigate quick structural change under conditions of “time pressure” (Schumann 2011) also means that it is necessary to phase in participative planning, consultas populares, people’s planning processes and decentralized democratic councils. (The introduction of regional councils formed part of the recent German debate on the crisis of car manufacturing and the export industries, cf. IG Metall Esslingen 2009, Lötzer 2010, Candeias/Röttger 2009). There are some historical instances where planning proved highly effective in bringing about social change that had to be achieved quickly (e.g., the New Deal in the U.S. in the 1930s and 40s). Joseph Schumpeter was passionately in favour of the “creative destruction” caused by capitalism; nevertheless, even he spoke of the “superiority of the socialist central plan” (1942, 310ff). Considering the need for a quick transition, socialists have a strong case for planning — but this time it should be participatory planning (Williamson 2010). This approach to planning is the only one capable of establishing a mode of societalization that breaks with the obsolete relations of power and property in capitalism. In the light of negative experiences with authoritarian and centralized planning mechanisms, experimenting with participatory planning at the regional level might be the right entry point. Another potential entry point is the democratization and decentralization of existing transregional processes of planning, for example in healthcare, energy, the railways, education etc. The global allocation of raw material and resources is a more difficult issue: it seems hard to envisage the democratization of the modes of planning used by international organizations and transnational corporations.

Real Democracy

The crisis of representation and legitimacy of the political system is in many ways linked to the fact that the political system does not take into account the essential needs of the people, and that they are not invited to participate in decision-making. The public sphere should be extended with the aim of creating a “provision economy,” but this should be accompanied by the radical democratization of the state. The ‘benevolent,’ paternalistic and patriarchal welfare state from Fordist times; authoritarian state socialism; the neoliberal restructuring of public services on the grounds of the principles of competition and managerial efficiency — none of these ventures had an emancipatory character. A left-wing state project has to instigate the extension of participation and transparency demanded by the new movements for democracy and to work for the absorption of the state into civil society, as Gramsci put it. Participation does not just mean that people are able to voice their opinion, but that they are able to influence decision-making. This is where the movement against Stuttgart 21 converges with Occupy and the Indignad@s. The authoritarian-neoliberal mode of crisis management, in contrast, is at odds with this principle.

Yet democratization is not just about the public dimension of the state, but also about the economy. Today, there are serious doubts about the socio-economic “contribution” of management strategies based on shareholder value. This is due to their short-termism and their part in the financial crisis, in excessive remuneration for senior managers, tax evasion, mass redundancies and environmental destruction. Similarly, the classic forms of firm-level co-determination have proven incapable of challenging the pressure of transnational competition and of the dominance of finance. Sometimes, co-determination bodies became entangled in practices of collaboration and corruption. Therefore, it is time for a democratization of the economy that goes beyond co-determination and the in-depth participation of employees, trade unions, the consumers and the wider population in firm-level decision-making (along the lines of the entire transnational chain of production).

It is vital that all the mechanisms discussed become part of a wider project that amplifies collective agency. In other words, they should enable individuals to become the protagonists of their own (hi)stories. It is “the task of every one of us to unify the divergent” (Peter Weiss [1975] 1983, 204). The resulting association should be seen as a political association — as a left-in-transformation, which is aware of the fact that its political goals can only be achieved through fierce struggles (Goldschmidt et al. 2008, 836ff). –

Translated from the German by Alexander Gallas.

Mario Candeias is a political economist, senior researcher at the Institute for Critical Social Analysis at Rosa Luxemburg Foundation in Berlin, and co-editor of the journal LuXemburg where this article first appeared (3/2012).

Brand, Ulrich, 2012, Schöne Grüne Welt. Über die Mythen der Green Economy, LuXemburg argumente series, no. 3, Berlin

Candeias, Mario, 2011a: Strategische Probleme eines gerechten Übergangs, LuXemburg, No. 1, 90—7

Candeias, Mario, 2011b: Schuldentribunal und grüner Sozialismus. Die Schuldenkrise politisieren, Mehring-1, 18. November.

Candeias, Mario, and Armin Kuhn, 2008: Grüner New Deal — kapitalistischer Weg aus der Krise?, in: Das Argument 279, vol. 50, 805—12

Candeias, Mario, and Bernd Röttger, 2009: Ausgebremste Erneuerung? Gewerkschaftspolitische Perspektiven in der Krise, in: Das Argument 284, vol. 51, 894—904

Fücks, Ralf, and Kristina Steenbock, 2007: Die Grosse Transformation. Kann die ökologische Wende des Kapitalismus gelingen?, Böll.Thema, no. 1, www.böll.de

Goldschmidt, Werner, Colin Barker and Wolfram Adolphi, 2008: Klassenkampf, in: Wolfgang Fritz Haug (ed.), Historisch-kritisches Wörterbuch des Marxismus, vol. 7/1, Berlin, 836—73

Lötzer, Ulla, 2010: Industriepolitische Offensive — Konversion, Zukunftsfonds, Wirtschaftsdemokratie, in: LuXemburg 3/2010, 86—93

Schumann, Harald and Hans-Jürgen Urban, 2011: Gespräch über Konversion und Mosaiklinke, in: LuXemburg 1/2011, 84—89

Schumpeter, Joseph A., 1942, Kapitalismus, Sozialismus und Demokratie, Tübingen 1987

Williamson, Thad, 2010: Democratic Social Planning and Worker Control, in: LuXemburg

Senators Urge Pipeline Approval Amid Groundswell Against Tar Sands

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Ignoring warnings from the world’s most prominent climate scientists who say that pursuit of mega-carbon projects like development of Alberta’s tar sands will lead to ‘climate chaos’ and irreversible tipping points, 53 US Senators signed a letter on Wednesday urging fast-track approval of the controversial Keystone XL pipeline.

Fryeburg resident Nickie Sekena, left, her son Luke Sekena-Flanders and Porter resident Doug Bowen were among about two dozen people Wednesday protesting the proposed flow of Canadian oil extracted from tar sands into South Portland. The demonstration organized by 350Maine at the headquarters of Portland Pipe Line Corp. on Hill Street opposed a reversal in direction of a pipeline from Montreal that would allow the oil to flow to the city. Another, larger protest is planned Saturday afternoon in Portland. (Photo: David Harry / The Forecaster) The letter, spearheaded by Sens. John Hoeven (R-N.D.) and Max Baucus (D-Mont.), employed what has widely been called a false dichotomy by asserting that protecting the environment and moving away from a fossil fuel dependent energy system was incompatible with job creation or economic prosperity.

“We ask you not to move the goalposts as opponents of this project have pressed you to do,” the letter read. “We urge you to choose jobs, economic development and American energy security.”

The letter proves that a majority of lawmakers in the upper chamber of Congress have not been swayed by the sizable groundswell of environmental activism around the Keystone XL project and climate change more broadly.

However, as upcoming events seek to show, the climate justice movement–taking aim at several pipeline projects pushed by the world’s largest oil companies–appears to be ascendent, with plans to bring their message to elected leaders and the fossil fuel industry directly in the weeks and months ahead.

This weekend, for example, regional allies across the northeast are coming together to protest proposed plans to bring tar sands oil through an existing pipeline system that runs from Montreal, Canada to Portland, Maine.

Billed as the ‘largest tar sands protest in the Northeast,’ groups from across New England will join campaigners on the Canadian side of the border standing in opposition to a plan by Canada’s Enbridge oil company and US-based ExxonMobil to transport Alberta’s tar sands eastward via a series of flow reversals in existing pipeline systems controlled by the two companies.

As The Forecaster, a local newspaper in Maine, explains:

The pipeline is currently used to pump light crude oil from the South Portland tanker facility to refineries in Canada. The tar-sands proposal would reverse the flow in one of the pipeline’s two underground pipes, sending tar sands from Alberta, Canada, to Maine.

Tar sands, also known as bitumen, is a viscous mix of oil, sand and clay. Because it is heavier and more corrosive than light crude, some experts say, the thick goo could force the pipeline to spring a leak.

“ExxonMobil is gearing up to move dirty tar sands oil east through Ontario and Quebec into New England to reach a shipping port in Portland, Maine,” reads a statement from the coalition organizing the protest. “But the people of eastern Canada and New England have their own plan and are forming a wall of opposition to keep the east tar sands free.”

“We call on the National Energy Board of Canada to deny approval of the Canadian section of this tar sands pipeline, and on the U.S. State Department to conduct a full environmental review which allows complete public input,” said David Stember from 350.org, which is helping to organize the Portland rally along with other national groups including the Sierra Club and National Wildlife Federation, and local groups including 350 Maine, Environment Maine and the Natural Resources Council of Maine.

“Given his commitment to tackling climate change, we believe President Obama should deny this project a Presidential Permit,” said Stember.

“Maine and the region have everything to lose and nothing to gain from sending toxic tar sands across our state,” said Lisa Pohlmann of the Natural Resources Council of Maine. “Hundreds of people will descend on Portland Saturday to make a point: We cannot afford the risk of tar sands oil oozing across the Northeast in Exxon’s pipeline and we will be calling on the State Department to demand an environmental review of this risky proposal. There is too much at stake.”

The specific action in Maine is designed to build regional resistance to what activists see as a national and international struggle against the fossil fuel industry’s stranglehold on the global energy system. With an acute sense that NIMBYism (meaning ‘not-in-my-backyard) style-environmentalism has plagued the movement for years, climate justice activists make it a point to say that their objection to one pipeline or another is only part of a deeper strategy whose chief aim is keep toxic fossil fuels like tar sands “in the ground” and undeveloped. 

“This pipeline runs across rivers and streams that include world-class aquatic habitat” said Carol Foss, director of conservation at Audubon New Hampshire. “Between the enormous risk to our wildlife and waterways and the lack of benefit to our communities, opposing this pipeline project seems like a no-brainer. We don’t need tar sands spilled in our waters, and we don’t need its climate impacts, period.”

As Texas landowner Eleanor Fairchild said during a protest against the Keystone XL pipeline said last year: “Tar sands is the dirtiest fuel on the planet, and I want the world to know that Texans do not want this pipeline forced through their homes.”

But, pushing back against the argument that her stance was solely about protecting her own property and water supply, Fairchild added: “From the White House to my house, I don’t want this pipe threatening anyone’s house anywhere in the world!”

The growing revolt around the tar sands seen from New England to Texas, from Vancouver to Montreal and many places in between, will next put its focus back on President Obama–and perhaps the fifty-three Senators who signed the letter yesterday–by planning a large-scale weekend of protest in Washington, DC in February.

Algeria parties oppose French overflights

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Algerian parties urge France to halt its overflights in the African state and end its war on Mali. (File photo)

Algerian political parties have called for a halt to French overflights in the North African state and urged Paris to end its war on Mali.

In a statement released following a meeting in Algiers on Wednesday, the parties urged “the closure of Algerian airspace to French and non-French military planes.”

Paris announced on January 13, that Algeria had allowed French warplanes to use its airspace for conducting bombing strikes on the north of the West African country of Mali.

“Overflights of Algeria by French planes were authorized on the basis of false arguments which damage national sovereignty and place Algeria as a partner in this war,” the statement by the Algerian parties said.

The parties also called for France to halt its war in the region and “withdraw immediately from Mali.”

On January 11, France launched a war in Mali under the pretext of halting the advance of the fighters in the African country.

The UN refugee agency has warned that the war in Mali could leave at least 700,000 people homeless.

TE/HMV

VA Legislature Moves To Rig Electoral Votes In GOP’s Favor

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Here we go! After their stealth move to redistrict Virginia’s Senate districts, Republicans are moving the next piece into place. News-Leader reports:

A Republican-backed bill that would end Virginia’s winner-takes-all method of apportioning its 13 electoral votes in presidential elections cleared its first legislative hurdle Wednesday.

A Senate Privileges and Elections subcommittee recommended Sen. Bill Carrico’s bill on a 3-3 party line vote Wednesday, advancing it to consideration by the GOP-dominated full committee next week. Republicans control the Senate and House in Virginia, and Gov. Bob McDonnell is a Republican.

The bill would apportion electors by congressional district to the candidate who wins each of the state’s 11 districts. The candidate who carries a majority of the districts would also win the two electors not tied to congressional districts.

Sen. Charles W. “Bill” Carrico, R-Grayson, said the change is necessary because Virginia’s populous, urbanized areas such as the Washington, D.C., suburbs and Hampton Roads can outvote rural regions such as his, rendering their will irrelevant.

So Virginia thinks that the solution is basing electoral votes on acreage rather than people? Seriously, Carrico is arguing that because the DC suburbs have more people who cast more votes, they should reapportion electoral votes by district. As Working America said, this would be the “heads I win, tails you lose” strategy.

Here’s the text of the bill:

Electoral College. Provides that the Commonwealth’s electoral votes shall be allocated by congressional district. Receipt by a slate of presidential electors of the highest number of votes in a congressional district constitutes the election of the congressional district elector of that slate. Receipt by a slate of electors of the highest number of votes in a majority of congressional districts constitutes the election of the two at-large electors of that slate. In the event no slate receives the highest number of votes in a majority of districts, receipt by a slate of the highest number of votes statewide shall constitute election of the two at-large electors of that slate.

The only comfort in all of this is that Virginia is subject to review under the Voting Rights Act, which means this scheme (and their stealth redistricting scheme) may not pass muster. But I wouldn’t count on that, particularly with the Voting Rights Act in front of the US Supreme Court this year.

I think we’d better figure out how to get rid of the electoral college altogether –and fast.

The Longest War is the One Against Women

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Artists in San Francisco protesting violence against women. (Photo: Marta Franco/ SFGate)Here in the United States, where there is a reported rape every 6.2 minutes, and one in five women will be raped in her lifetime, the rape and gruesome murder of a young woman on a bus in New Delhi on December 16th was treated as an exceptional incident. The story of the alleged rape of an unconscious teenager by members of the Steubenville High School football team was still unfolding, and gang rapes aren’t that unusual here either. Take your pick: some of the 20 men who gang-raped an 11-year-old in Cleveland, Texas, were sentenced in November, while the instigator of the gang rape of a 16-year-old in Richmond, California, was sentenced in October, and four men who gang-raped a 15-year-old near New Orleans were sentenced in April, though the six men who gang-raped a 14-year-old in Chicago last fall are still at large. Not that I actually went out looking for incidents: they’re everywhere in the news, though no one adds them up and indicates that there might actually be a pattern.

There is, however, a pattern of violence against women that’s broad and deep and horrific and incessantly overlooked. Occasionally, a case involving a celebrity or lurid details in a particular case get a lot of attention in the media, but such cases are treated as anomalies, while the abundance of incidental news items about violence against women in this country, in other countries, on every continent including Antarctica, constitute a kind of background wallpaper for the news.

If you’d rather talk about bus rapes than gang rapes, there’s the rape of a developmentally disabled woman on a Los Angeles bus in November and the kidnapping of an autistic 16-year-old on the regional transit train system in Oakland, California — she was raped repeatedly by her abductor over two days this winter — and there was a gang rape of multiple women on a bus in Mexico City recently, too.  While I was writing this, I read that another female bus-rider was kidnapped in India and gang-raped all night by the bus driver and five of his friends who must have thought what happened in New Delhi was awesome.

We have an abundance of rape and violence against women in this country and on this Earth, though it’s almost never treated as a civil rights or human rights issue, or a crisis, or even a pattern. Violence doesn’t have a race, a class, a religion, or a nationality, but it does have a gender.

Here I want to say one thing: though virtually all the perpetrators of such crimes are men, that doesn’t mean all men are violent. Most are not. In addition, men obviously also suffer violence, largely at the hands of other men, and every violent death, every assault is terrible. But the subject here is the pandemic of violence by men against women, both intimate violence and stranger violence.  

What We Don’t Talk About When We Don’t Talk About Gender

There’s so much of it. We could talk about the assault and rape of a 73-year-old in Manhattan’s Central Park last September, or the recent rape of a four-year-old and an 83-year-old in Louisiana, or the New York City policeman who was arrested in October for what appeared to be serious plans to kidnap, rape, cook, and eat a woman, any woman, because the hate wasn’t personal (though maybe it was for the San Diego man who actually killed and cooked his wife in November and the man from New Orleans who killed, dismembered, and cooked his girlfriend in 2005).

Those are all exceptional crimes, but we could also talk about quotidian assaults, because though a rape is reported only every 6.2 minutes in this country, the estimated total is perhaps five times as high. Which means that there may be very nearly a rape a minute in the U.S. It all adds up to tens of millions of rape victims.

We could talk about high-school– and college-athlete rapes, or campus rapes, to which university authorities have been appallingly uninterested in responding in many cases, including that high school in Steubenville, Notre Dame University, Amherst College, and many others. We could talk about the escalating pandemic of rape, sexual assault, and sexual harassment in the U.S. military, where Secretary of Defense Leon Panetta estimated that there were 19,000 sexual assaults on fellow soldiers in 2010 alone and that the great majority of assailants got away with it, though four-star general Jeffrey Sinclair was indicted in September for “a slew of sex crimes against women.”

Never mind workplace violence, let’s go home. So many men murder their partners and former partners that we have well over 1,000 homicides of that kind a year — meaning that every three years the death toll tops 9/11’s casualties, though no one declares a war on this particular terror. (Another way to put it: the more than 11,766 corpses from domestic-violence homicides since 9/11 exceed the number of deaths of victims on that day and all American soldiers killed in the “war on terror.”) If we talked about crimes like these and why they are so common, we’d have to talk about what kinds of profound change this society, or this nation, or nearly every nation needs. If we talked about it, we’d be talking about masculinity, or male roles, or maybe patriarchy, and we don’t talk much about that.

If we talked about crimes like these…we’d have to talk about what kinds of profound change this society, or this nation, or nearly every nation needs. If we talked about it, we’d be talking about masculinity, or maybe patriarchy, and we don’t talk much about that.

Instead, we hear that American men commit murder-suicides — at the rate of about 12 a week — because the economy is bad, though they also do it when the economy is good; or that those men in India murdered the bus-rider because the poor resent the rich, while other rapes in India are explained by how the rich exploit the poor; and then there are those ever-popular explanations: mental problems and intoxicants — and for jocks, head injuries. The latest spin is that lead exposure was responsible for a lot of our violence, except that both genders are exposed and one commits most of the violence. The pandemic of violence always gets explained as anything but gender, anything but what would seem to be the broadest explanatory pattern of all.

Someone wrote a piece about how white men seem to be the ones who commit mass murders in the U.S. and the (mostly hostile) commenters only seemed to notice the white part. It’s rare that anyone says what this medical study does, even if in the driest way possible: “Being male has been identified as a risk factor for violent criminal behavior in several studies, as have exposure to tobacco smoke before birth, having antisocial parents, and belonging to a poor family.”

Still, the pattern is plain as day. We could talk about this as a global problem, looking at the epidemic of assault, harassment, and rape of women in Cairo’s Tahrir Square that has taken away the freedom they celebrated during the Arab Spring — and led some men there to form defense teams to help counter it — or the persecution of women in public and private in India from “Eve-teasing” to bride-burning, or “honor killings” in South Asia and the Middle East, or the way that South Africa has become a global rape capital, with an estimated 600,000 rapes last year, or how rape has been used as a tactic and “weapon” of war in Mali, Sudan, and the Congo, as it was in the former Yugoslavia, or the pervasiveness of rape and harassment in Mexico and the femicide in Juarez, or the denial of basic rights for women in Saudi Arabia and the myriad sexual assaults on immigrant domestic workers there, or the way that the Dominique Strauss-Kahn case in the United States revealed what impunity he and others had in France, and it’s only for lack of space I’m leaving out Britain and Canada and Italy (with its ex-prime minister known for his orgies with the underaged), Argentina and Australia and so many other countries.

Who Has the Right to Kill You?

But maybe you’re tired of statistics, so let’s just talk about a single incident that happened in my city a couple of weeks ago, one of many local incidents in which men assaulted women that made the local papers this month:

“A woman was stabbed after she rebuffed a man’s sexual advances while she walked in San Francisco’s Tenderloin neighborhood late Monday night, a police spokesman said today. The 33-year-old victim was walking down the street when a stranger approached her and propositioned her, police spokesman Officer Albie Esparza said. When she rejected him, the man became very upset and slashed the victim in the face and stabbed her in the arm, Esparza said.”

The man, in other words, framed the situation as one in which his chosen victim had no rights and liberties, while he had the right to control and punish her. This should remind us that violence is first of all authoritarian. It begins with this premise: I have the right to control you.

Murder is the extreme version of that authoritarianism, where the murderer asserts he has the right to decide whether you live or die, the ultimate means of controlling someone. This may be true even if you are “obedient,” because the desire to control comes out of a rage that obedience can’t assuage. Whatever fears, whatever sense of vulnerability may underlie such behavior, it also comes out of entitlement, the entitlement to inflict suffering and even death on other people. It breeds misery in the perpetrator and the victims.    

As for that incident in my city, similar things happen all the time. Many versions of it happened to me when I was younger, sometimes involving death threats and often involving torrents of obscenities: a man approaches a woman with both desire and the furious expectation that the desire will likely be rebuffed. The fury and desire come in a package, all twisted together into something that always threatens to turn eros into thanatos, love into death, sometimes literally.

It’s a system of control. It’s why so many intimate-partner murders are of women who dared to break up with those partners. As a result, it imprisons a lot of women, and though you could say that the attacker on January 7th, or a brutal would-be-rapist near my own neighborhood on January 5th, or another rapist here on January 12th, or the San Franciscan who on January 6th set his girlfriend on fire for refusing to do his laundry, or the guy who was just sentenced to 370 years for some particularly violent rapes in San Francisco in late 2011, were marginal characters, rich, famous, and privileged guys do it, too.

The Japanese vice-consul in San Francisco was charged with 12 felony counts of spousal abuse and assault with a deadly weapon last September, the same month that, in the same town, the ex-girlfriend of Mason Mayer (brother of Yahoo CEO Marissa Mayer) testified in court: “He ripped out my earrings, tore my eyelashes off, while spitting in my face and telling me how unlovable I am… I was on the ground in the fetal position, and when I tried to move, he squeezed both knees tighter into my sides to restrain me and slapped me.” According to the newspaper, she also testified that “Mayer slammed her head onto the floor repeatedly and pulled out clumps of her hair, telling her that the only way she was leaving the apartment alive was if he drove her to the Golden Gate Bridge ‘where you can jump off or I will push you off.’” Mason Mayer got probation.   

This summer, an estranged husband violated his wife’s restraining order against him, shooting her — and six other women — at her spa job in suburban Milwaukee, but since there were only four corpses the crime was largely overlooked in the media in a year with so many more spectacular mass murders in this country (and we still haven’t really talked about the fact that, of 62 mass shootings in the U.S. in three decades, only one was by a woman, because when you say lone gunman, everyone talks about loners and guns but not about men — and by the way, nearly two thirds of all women killed by guns are killed by their partner or ex-partner).

What’s love got to do with it, asked Tina Turner, whose ex-husband Ike once said, “Yeah I hit her, but I didn’t hit her more than the average guy beats his wife.” A woman is beaten every nine seconds in this country. Just to be clear: not nine minutes, but nine seconds. It’s the number-one cause of injury to American women; of the two million injured annually, more than half a million of those injuries require medical attention while about 145,000 require overnight hospitalizations, according to the Center for Disease Control, and you don’t want to know about the dentistry needed afterwards. Spouses are also the leading cause of death for pregnant women in the U.S.

‘Women worldwide ages 15 through 44 are more likely to die or be maimed because of male violence than because of cancer, malaria, war and traffic accidents combined.’ “Women worldwide ages 15 through 44 are more likely to die or be maimed because of male violence than because of cancer, malaria, war and traffic accidents combined,” writes Nicholas D. Kristof, one of the few prominent figures to address the issue regularly.  

The Chasm Between Our Worlds

Rape and other acts of violence, up to and including murder, as well as threats of violence, constitute the barrage some men lay down as they attempt to control some women, and fear of that violence limits most women in ways they’ve gotten so used to they hardly notice — and we hardly address. There are exceptions: last summer someone wrote to me to describe a college class in which the students were asked what they do to stay safe from rape. The young women described the intricate ways they stayed alert, limited their access to the world, took precautions, and essentially thought about rape all the time (while the young men in the class, he added, gaped in astonishment). The chasm between their worlds had briefly and suddenly become visible.

Mostly, however, we don’t talk about it — though a graphic has been circulating on the Internet called Ten Top Tips to End Rape, the kind of thing young women get often enough, but this one had a subversive twist. It offered advice like this: “Carry a whistle! If you are worried you might assault someone ‘by accident’ you can hand it to the person you are with, so they can call for help.” While funny, the piece points out something terrible: the usual guidelines in such situations put the full burden of prevention on potential victims, treating the violence as a given. You explain to me why colleges spend more time telling women how to survive predators than telling the other half of their students not to be predators.

Threats of sexual assault now seem to take place online regularly. In late 2011, British columnist Laurie Penny wrote, “An opinion, it seems, is the short skirt of the Internet. Having one and flaunting it is somehow asking an amorphous mass of almost-entirely male keyboard-bashers to tell you how they’d like to rape, kill, and urinate on you. This week, after a particularly ugly slew of threats, I decided to make just a few of those messages public on Twitter, and the response I received was overwhelming. Many could not believe the hate I received, and many more began to share their own stories of harassment, intimidation, and abuse.”

Women in the online gaming community have been harassed, threatened, and driven out. Anita Sarkeesian, a feminist media critic who documented such incidents, received support for her work, but also, in the words of a journalist, “another wave of really aggressive, you know, violent personal threats, her accounts attempted to be hacked. And one man in Ontario took the step of making an online video game where you could punch Anita’s image on the screen. And if you punched it multiple times, bruises and cuts would appear on her image.” The difference between these online gamers and the Taliban men who, last October, tried to murder 14-year-old Malala Yousafzai for speaking out about the right of Pakistani women to education is one of degree. Both are trying to silence and punish women for claiming voice, power, and the right to participate. Welcome to Manistan.

The Party for the Protection of the Rights of Rapists

It’s not just public, or private, or online either. It’s also embedded in our political system, and our legal system, which before feminists fought for us didn’t recognize most domestic violence, or sexual harassment and stalking, or date rape, or acquaintance rape, or marital rape, and in cases of rape still often tries the victim rather than the rapist, as though only perfect maidens could be assaulted — or believed.

As we learned in the 2012 election campaign, it’s also embedded in the minds and mouths of our politicians. Remember that spate of crazy pro-rape things Republican men said last summer and fall, starting with Todd Akin’s notorious claim that a woman has ways of preventing pregnancy in cases of rape, a statement he made in order to deny women control over their own bodies. After that, of course, Senate candidate Richard Mourdock claimed that rape pregnancies were “a gift from God,” and just this month, another Republican politician piped up to defend Akin’s comment.

Happily the five publicly pro-rape Republicans in the 2012 campaign all lost their election bids. (Stephen Colbert tried to warn them that women had gotten the vote in 1920.) But it’s not just a matter of the garbage they say (and the price they now pay).  Earlier this month, congressional Republicans refused to reauthorize the Violence Against Women Act, because they objected to the protection it gave immigrants, transgendered women, and Native American women.  (Speaking of epidemics, one of three Native American women will be raped, and on the reservations 88% of those rapes are by non-Native men who know tribal governments can’t prosecute them.)

And they’re out to gut reproductive rights — birth control as well as abortion, as they’ve pretty effectively done in many states over the last dozen years. What’s meant by “reproductive rights,” of course, is the right of women to control their own bodies. Didn’t I mention earlier that violence against women is a control issue?

And though rapes are often investigated lackadaisically — there is a backlog of about 400,000 untested rape kits in this country– rapists who impregnate their victims have parental rights in 31 states. Oh, and former vice-presidential candidate and current congressman Paul Ryan (R-Manistan) is reintroducing a bill that would give states the right to ban abortions and might even conceivably allow a rapist to sue his victim for having one.  

All the Things That Aren’t to Blame

Of course, women are capable of all sorts of major unpleasantness, and there are violent crimes by women, but the so-called war of the sexes is extraordinarily lopsided when it comes to actual violence. Unlike the last (male) head of the International Monetary Fund, the current (female) head is not going to assault an employee at a luxury hotel; top-ranking female officers in the U.S. military, unlike their male counterparts, are not accused of any sexual assaults; and young female athletes, unlike those male football players in Steubenville, aren’t likely to urinate on unconscious boys, let alone violate them and boast about it in YouTube videos and Twitter feeds.  

No female bus riders in India have ganged up to sexually assault a man so badly he dies of his injuries, nor are marauding packs of women terrorizing men in Cairo’s Tahrir Square, and there’s just no maternal equivalent to the 11% of rapes that are by fathers or stepfathers. Of the people in prison in the U.S., 93.5% are not women, and though quite a lot of them should not be there in the first place, maybe some of them should because of violence, until we think of a better way to deal with it, and them.

No major female pop star has blown the head off a young man she took home with her, as did Phil Spector. (He is now part of that 93.5% for the shotgun slaying of Lana Clarkson, apparently for refusing his advances.)  No female action-movie star has been charged with domestic violence, because Angelina Jolie just isn’t doing what Mel Gibson and Steve McQueen did, and there aren’t any celebrated female movie directors who gave a 13-year-old drugs before sexually assaulting that child, while she kept saying “no,” as did Roman Polanski.

In Memory of Jyoti Singh Pandey

What’s the matter with manhood? There’s something about how masculinity is imagined, about what’s praised and encouraged, about the way violence is passed on to boys that needs to be addressed. There are lovely and wonderful men out there, and one of the things that’s encouraging in this round of the war against women is how many men I’ve seen who get it, who think it’s their issue too, who stand up for us and with us in everyday life, online and in the marches from New Delhi to San Francisco this winter.

There’s something about how masculinity is imagined, about what’s praised and encouraged, about the way violence is passed on to boys that needs to be addressed.

Increasingly men are becoming good allies — and there always have been some. Kindness and gentleness never had a gender, and neither did empathy. Domestic violence statistics are down significantly from earlier decades (even though they’re still shockingly high), and a lot of men are at work crafting new ideas and ideals about masculinity and power.

Gay men have been good allies of mine for almost four decades. (Apparently same-sex marriage horrifies conservatives because it’s marriage between equals with no inevitable roles.) Women’s liberation has often been portrayed as a movement intent on encroaching upon or taking power and privilege away from men, as though in some dismal zero-sum game, only one gender at a time could be free and powerful. But we are free together or slaves together.

There are other things I’d rather write about, but this affects everything else. The lives of half of humanity are still dogged by, drained by, and sometimes ended by this pervasive variety of violence. Think of how much more time and energy we would have to focus on other things that matter if we weren’t so busy surviving. Look at it this way: one of the best journalists I know is afraid to walk home at night in our neighborhood. Should she stop working late? How many women have had to stop doing their work, or been stopped from doing it, for similar reasons?

One of the most exciting new political movements on Earth is the Native Canadian indigenous rights movement, with feminist and environmental overtones, called Idle No More. On December 27th, shortly after the movement took off, a Native woman was kidnapped, raped, beaten, and left for dead in Thunder Bay, Ontario, by men whose remarks framed the crime as retaliation against Idle No More. Afterward, she walked four hours through the bitter cold and survived to tell her tale. Her assailants, who have threatened to do it again, are still at large.

The New Delhi rape and murder of Jyoti Singh Pandey, the 23-year-old who was studying physiotherapy so that she could better herself while helping others, and the assault on her male companion (who survived) seem to have triggered the reaction that we have needed for 100, or 1,000, or 5,000 years. May she be to women — and men — worldwide what Emmett Till, murdered by white supremacists in 1955, was to African-Americans and the then-nascent U.S. civil rights movement.

We have far more than 87,000 rapes in this country every year, but each of them is invariably portrayed as an isolated incident. We have dots so close they’re splatters melting into a stain, but hardly anyone connects them, or names that stain. In India they did. They said that this is a civil rights issue, it’s a human rights issue, it’s everyone’s problem, it’s not isolated, and it’s never going to be acceptable again. It has to change. It’s your job to change it, and mine, and ours.

© 2013 Rebecca Solnit

Syria army advances against militants

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Syrian army forces celebrate after cleaning the Damascus suburb of Midan of foreign-backed militants. (File photo)

Syrian troops are advancing against foreign-backed militants, who are expected to launch more terrorist attacks against government officials and people, Press TV reports.

In Damascus, militants are trying to force their way through Yarmouk Palestinian Refugee Camp into the southern neighborhoods of New and Old Zahira, and then into the heart of the capital.

Reports also indicate widening divisions and eruption of clashes among Syrian militant forces at the Yarmouk camp.

Meanwhile, the army continues with its mop-up operations in the suburbs of Aqraba, Beit Sahm and Shaba’a to prevent supplies from reaching the militants operating in Eastern Ghouta, Yarmouk and Hajar al-Aswad.

Fierce clashes also continue in the capital’s Sayyida Zainab neighborhood, where militants have advanced toward the Bahdalieh suburb.

In Eastern Ghouta, the army has tightened its noose around militants in the city of Duma, and cut off militant supply routes connecting Masraba and Arbeen suburbs to Zamalka, Saqba and Hamouriya.

In Dara’a, government forces are trying to drive out the militants holed in the gardens around the southwestern city.

Syria has been experiencing a deadly unrest since March 2011. Many people, including large numbers of army and security personnel, have been killed in the prolonged turmoil.

Damascus says the chaos is being orchestrated from outside the country, and that a very large number of the militants operating in the country are foreign nationals.

MRS/HMV/SS

Old Bailey Bomber Found Dead

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Old Bailey bomber Dolours Price has been found dead.

The 62-year-old mother-of-two was found at her home in Malahide, north Dublin, on Wednesday night, sources said.

price sisters

Dolours Price (left) and her sister Marian pictured in 1972

Price, the former wife of actor Stephen Rea, was a convicted Provisional IRA car bomber for the 1973 attack on London’s Old Bailey courts in which one man died and more than 200 people were injured.

A garda spokesman said officers were investigating the sudden death of a woman at a home on St Margaret’s Road in Malahide.

Her death is not being treated as suspicious.

Price had been outspoken about Sinn Fein president Gerry Adams’s alleged involvement with the IRA for several years.

Along with her 58-year-old sister Marian, who has been imprisoned in Northern Ireland since 2011 after her licence was revoked, they were both critics of the peace process.

In 1973 the two sisters were part of the IRA unit that planted four car bombs outside the Old Bailey. Two of the bombs exploded.

Dolours Price, sentenced to life for the bombing, accused Mr Adams of sanctioning the court attack.

She also alleged that he personally ordered the abduction of several people the IRA considered to be traitors in the 1970s, including Belfast mother of 10 Jean McConville.

Mr Adams has always denied ever being a member of the IRA.

Price claimed she made the allegations on the record to researchers working for Boston College in the US, which the Police Service of Northern Ireland has been battling to recover as evidence.

The recordings were made on the basis that they remain secret until the death of the 28 former IRA and Ulster Volunteer Force terrorists who took part.

Price went on hunger strike with her sister after being charged over the Old Bailey bomb.

old bailey bombing

The aftermath of the old Bailey Bombing in 1973

They refused food for 200 days and were subsequently repatriated to Northern Ireland to serve their sentences.

Mr Adams insisted he feels no bitterness towards his accuser.

“None whatsoever,” he said.

“I’m sad and shocked to hear that she is dead, and I’m sure everybody who knew her or knew of her will also be sad at this time.”

The Sinn Fein leader took the opportunity to call for the release of her sister Marian from prison, adding that she should never have been jailed without a trial.

Her licence was revoked after she read a statement at a dissident republican Easter Rising commemoration in Londonderry in 2011.

Mr Adams said both sisters were extremely close, having spent time in prison together, and that Dolours’ death would be particularly hard on Marian.

gerry adams

Price accused Gerry Adams of being a leading IRA figure

He said both women had lived hard lives as a result of their involvement in what he called “the civil rights struggle”.

“Dolours had a very tough life, like many people,” he said.

“She was a long time imprisoned in England. She endured over 200 days of force feeding while on hunger strike. She had many trials and tribulations in her life.”

Mr Adams, who said he had not spoken to Price for some time, said he had no concerns about her allegations against him being made public by Boston College.

“I never worry about matters that I have no control over and I have no concerns about any of those issues because they are not true,” he said.

A post-mortem examination is planned.

Goldman Sachs, Shell ‘Named and Shamed’ in Public Eye ‘Award’

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As leaders from the world’s top banks and corporations continue to meet this week at the World Economic Forum, protesters also gathered in Davos to announce this year’s Public Eye “Shame Awards.” And the winners are…Goldman Sachs and Shell.

A policeman stands guard on the roof of the Congress Hotel during the World Economic Forum Annual Meeting 2013 on January 23, 2013 at the Swiss resort of Davos. (Agence France-Presse) The ‘honors,’ awarded to the two WEF member corporations “for particularly glaring cases of companies’ greed for profit and environmental sins,” were announced at the annual award ceremony hosted by campaign groups Greenpeace (Switzerland) and the Berne Declaration.

The ceremony was held “within eyeshot” of the WEF summit–a place “where the rich and powerful will ponder the planet’s future.”

Goldman Sachs “is a key player in financially driven globalization, which pays for profits of a few with exploding inequality and the impoverishment of broad strata,” the groups said in a joint statement.

“Shell has invested $4.5 billion into a senseless, highly risky plan and only produced problems. The Public Eye Award vote shows that the public keeps an eye on Shell and that its pig-headedness will continue to be sanctioned by public opinion,” Greenpeace International director and Shame Award jury member Kumi Naidoo stated.

Professor William K. Black, economist and former banking regulator and speaker at the award ceremony, added:

The central point that I want to stress as a white-collar criminologist and effective financial regulator is that Goldman Sachs is not a singular ‘rotten apple’ in a healthy bushel of banks. Goldman Sachs is the norm for systemically dangerous institutions (SDIs) (the so-called ‘too big to fail’ banks).

Goldman Sachs was given the Public Eye jury prize.

Shell was chosen by online voters for the “public award” by a large margin among 41,800 online voters.

On Shell’s recent escapades in the Arctic, the groups added:

[Shell] is out in front in the highly risky search for fossil fuels in the fragile Arctic. This has been made possible by climate change and the disappearance of the Arctic ice cap, to which Shell has contributed. Every Arctic offshore oil project means new CO2 emissions. The Arctic’s oil reserves are enough for just three years. For this, Shell is jeopardizing one of the Earth’s last natural paradises and endangering the living space of four million people, as well as unique fauna. In recent months, this corporation has gone through an alarming series of mishaps in the region, and it has not even started on the oil wells yet.

Shell and Goldman will now join their predecessors in the Hall of Shame, which already includes past winners Barclays, Glencore, Citigoup, Walt Disney, Dow, and Walmart, among others.

‘US public fed-up with Israeli violations’

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A political analyst says American citizens are getting fed-up with Israeli regime’s violation of Palestinians’ rights and the US support for the Tel Aviv regime, Press TV reports.

“The public opinion is beginning to move in the United States…. I think that American people and even the Jewish, and maybe especially the Jewish citizens of the United States, are really getting fed-up,” Paul Larudee said in an interview with Press TV on Thursday.

He further pointed out that people in the United States are getting more aware of Israel’s violations of Palestinians’ rights despite the West’s efforts to hide the truth.

“They [the American citizens] are learning more and more about what was kept quiet before about Israel’s violations. The Internet is making such information available to them,” Larudee added.

The analyst also stated that the American public will in the near future demand an end to their country’s aid to Israel.

“I do not know what the time period is. It could be six months or it could be ten years…. The public in the United States, will want to stop… supporting Israel diplomatically as well and also it is possible that the United States will not find [supporting] Israel to be to its strategic advantage,” he noted.

Larudee went on to say that suing Israel at the International Criminal Court (ICC) will not stop it from building illegal settler units on the occupied Palestinian land as the Tel Aviv regime has no respect for the international law.

“Israel has been sanctioned many, many times for violation of international law…. so I cannot imagine that it would cause them to reduce their settlement activities. If anything, maybe they are afraid that their impunity will be cut back and that, therefore, they should move faster before it disappears entirely,” Larudee concluded.

The Palestinian Authority Foreign Minister Riyad al-Maliki announced on Wednesday that Palestine would take legal action against Israel at the ICC if the Tel Aviv regime builds new settler units on the occupied Palestinian lands.

More than half a million Israelis live in over 120 illegal settlements built since Israel’s occupation of the Palestinian territories of the West Bank and East al-Quds in 1967.

TNP/SS

Palestine threatens Israel with ICC if further settlements built

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Palestinians labourers work at a housing construction site in the West Bank Jewish settlement of Alon, east of Jerusalem on December 3, 2012. (AFP Photo/Menahem Kahana)

Palestinians labourers work at a housing construction site in the West Bank Jewish settlement of Alon, east of Jerusalem on December 3, 2012. (AFP Photo/Menahem Kahana)

Palestine declared Wednesday that they will be left with ‘no choice’ but to take Israel to the International Criminal Court (ICC) if the Jewish state proceeds with plans to build settlements in occupied areas of East Jerusalem.

After a meeting Wednesday of the United Nations Security Council on the Middle East, Riad Malki, the Palestinian foreign minister, said his government’s decision will largely depend on whether the Israelis build on the E1 area outside the Arab suburbs of East Jerusalem.

“If Israel would like to go further by implementing the E1 plan and the other related plans around Jerusalem then yes, we will be going to the ICC. We have no other choice. It depends on the Israeli decision,” he said.

E1 is one of the occupied areas where newly-reelected Benjamin Netanyahu’s outgoing government has given the green light for what could be potentially thousands of new settlement homes.

Malki said the Palestinian government would wait and see what the new Israeli government does, adding that they are “absolutely not going to tolerate any construction in that particular area.”

Previously the Palestinians have said that bringing their various disputes with Israel to the ICC in The Hague was not option, but Malki’s remarks on Wednesday appear to mark a change of tactics.

The Palestinians became eligible to join the ICC after a vote on November 29, 2012, at the United Nations General Assembly, which voted to upgrade their status from ‘observer entity’ to ‘non-member observer state’.

This decision was seen by many as de facto recognition of an independent Palestinian state. Only nine nations including Israel and the United States voted against the motion in the 193-nation general assembly.

The vote took place on the 65th anniversary of the adoption of UN resolution 181, which portioned Palestine into separate Jewish and Arab states. After the vote, Israel announced it would build another 3,000 settler homes in East Jerusalem and the West Bank.

Senior Israeli officials announced last month that Israel does not intend to cancel plans to accelerate settlement construction in E1.Netanyahu himself said in an interview with Israeli Channel 2 last month that the disputed area “is not occupied territory” and that he “does not care” what the UN thinks about it.

Around 500,000 Israelis and 2.4 million Palestinians live in the West Bank and in East Jerusalem, areas that, along with Gaza, the Palestinians want for a future state.

E1 covers 12 sq km and is particularly significant because it backs onto East Jerusalem, which the Palestinians want as their capital, and because it sticks out into the narrow middle section of the West Bank.

The United Nations regards all Israeli settlements in the West Bank as illegal. While Robert Serry, the UN Special Coordinator of the Middle East Peace Process, has said that the Israeli settlements are “increasingly an obstacle to peace.” However, he has also warned the Palestinians against pursuing the issue at the ICC.

The White House reiterated its call Wednesday for the resumption of long stalled Israeli-Palestinian peace negotiations, in light of recent Israeli election which returned Netanyahu to power with a weaker majority for his right-wing bloc.

When Trees Die, People Die

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(Photo:maja*majika via Flickr)The blight was first detected in June 2002, when the trees in Canton, Michigan, got sick. The culprit, the emerald ash borer, had arrived from overseas, and it rapidly spread — a literal bug — across state and national lines to Ohio, Minnesota, Ontario. It popped up in more distant, seemingly random locations as infested trees were unwittingly shipped beyond the Midwest.

Within four years of first becoming infested, the ash trees die — over 100 million since the plague began. In some cases, their death has an immediate impact, as they fall on cars, houses, and people. In the long term, their disappearance means parks and neighborhoods, once tree-lined, are now bare.

blight.JPG©American Journal of Preventive Medicine

Something else, less readily apparent, may have happened as well. When the U.S. Forest Service looked at mortality rates in counties affected by the emerald ash borer, they found increased mortality rates. Specifically, more people were dying of cardiovascular and lower respiratory tract illness — the first and third most common causes of death in the U.S. As the infestation took over in each of these places, the connection to poor health strengthened.

The “relationship between trees and human health,” as they put it, is convincingly strong. They controlled for as many other demographic factors as possible. And yet, they are unable to satisfactorily explain why this might be so.

In a literal sense, of course, the absence of trees would mean the near absence of oxygen — on the most basic level, we cannot survive without them. We know, too, that trees act as a natural filter, cleaning the air from pollutants, with measurable effects in urban areas. The Forest Service put a 3.8 billion dollar value on the air pollution annually removed by urban trees. In Washington D.C., trees remove nitrogen dioxide to an extent equivalent to taking 274,000 cars off the traffic-packed beltway, saving an estimated $51 million in annual pollution-related health care costs.

trees.JPG©Science

But a line of modern thought suggests that trees and other elements of natural environments might affect our health in more nuanced ways as well. Roger Ulrich demonstrated the power of having a connection with nature, however tenuous, in his classic 1984 study with patients recovering from gall bladder removal surgery in a suburban Pennsylvania hospital. He manipulated the view from the convalescents’ windows so that half were able to gaze at nature while the others saw only a brick wall. Those with trees outside their window recovered faster, and requested fewer pain medications, than those with a “built” view. They even had slightly fewer surgical complications.

Environmental psychologists Rachel and Stephen Kaplan attributed nature’s apparent restorative ability to something they termed “soft fascination”: Natural scenes, they theorized, are almost effortlessly able to capture people’s attention and lull them into a sort of hypnotic state where negative thoughts and emotions are overtaken by a positive sense of well-being. Indeed, an analysis of numerous studies in BMC Public Health found evidence for natural environments having “direct and positive impacts on well-being,” in the form of reduced anger and sadness.

The effect, it has been suggested, can have subtler effects than a mere elevation of mood. A 2010 study looked at the presence of parks and forests in the vicinity of people’s homes and their ability to act as a “buffer” against stress. They ending up finding that the presence of “green space” was more closely related to physical — in terms of minor complaints and perceived general health — than mental well-being. While nature wasn’t enough to make the participants forget about stressful life events, it appeared to quell their psychosomatic complaints.

The increases in mortality identified by the Forest Service study, meanwhile, were more pronounced in counties where the median household income was above average. The disparity highlights what we intuitively know about the presence of trees: In wealthier communities, they increase the market value of homes, while parks in poor neighborhoods attract crime and are thus undesirable. The researchers hypothesize that the rich communities that thrived before the blight arrived thus experienced its destructive effects more potently.

Which is all to say that there is something fascinatingly mysterious about the entanglement of our health with that of nature. The suspicion that this may be so, of course, is seen well outside of the scientific literature on the topic. Maurice Sendak knew it, as he spoke of his appreciation for the trees seen from his window in the final months of his life. And Henry David Thoreau, writing in The Atlantic in June 1862, said, “I think that I cannot preserve my health and spirits, unless I spend four hours a day at least — and it is commonly more than that — sauntering through the woods and over the hills and fields, absolutely free from all worldly engagements.”

© 2013 Atlantic Media Company

Russian MPs may consider canceling US adoption ban in March

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Photographs of adopted children in the Russian office of the adoption agency "New Hope Christian Services" in St. Petersburg. (RIA Novosti/Igor Rustak)

Photographs of adopted children in the Russian office of the adoption agency “New Hope Christian Services” in St. Petersburg. (RIA Novosti/Igor Rustak)

The Dima Yakovlev law banning all adoptions of Russian children by American citizens came into force on January 1, but is still causing heated debates among the Russian community.

In mid-January, deputies from the Fair Russia party submitted to the lower house a bill that could annul the adoptions ban. The legislative initiative was based on a similar public petition organized by Novaya Gazeta daily and signed by over 100,000 people.

The Fair Russia proposal will now go through required procedures in the State Duma and in March it may be considered by the lawmakers.

It is unlikely though that the bill will be supported by the majority of deputies, Vladimir Ponevezhsky from the Duma Committee on Constitutional Law told journalists on Thursday. In the MPs’ opinion, there is no need to make any changes to the Dima Yakovlev law.

Earlier, Russian lawmakers refused to take action on the petition submitted by Novaya Gazeta journalists.MPs explained that even though there is a rule obliging the parliament to consider demands supported by at least 100,000 citizens, it lacks detail on how exactly it should be done. That, however, may soon be resolved.

Mikhail Barshchevsky, a well-known Russian lawyer and the government’s representative to higher courts, urged the cabinet to take responsibility for preparing bills based on public initiatives.

Duma Speaker Sergey Naryshkin also supports the idea, but argues that it cannot be only the government’s duty and the suggested mechanism requires further discussion.

Initially, the idea to introduce the rule for a mandatory revision in the Parliament of proposals that collect at least 100,000 on the internet was put forward by President Vladimir Putin in February during his election campaign.

Poland ‘Happy To Take UK’s Place At EU Table’

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Poland has said it would be happy to usurp the United Kingdom as a leading member of the European Union if the British government chooses to negotiate looser ties with Brussels or exit the bloc entirely.

On Thursday Polish foreign minister RadosÅ‚aw Sikorski said David Cameron’s promise to hold a referendum on EU membership meant the UK was now a “a country under special care”.

Sikorski observed that Britain’s position as part of a effective ruling triumvirate within the EU alongside France and Germany had been put under threat by Cameron’s speech.

He said that while Britain was welcome to “take what belongs to it and run back to its island”; Poland saw greater European integration as being in its “vested national interest”.

“In order for this to happen, we need closer ties with the EU, not looser,” Sikorski said.

“We have to continue our reforms and become a member of the euro zone. And once that happens, at the end of the current decade, we can join this group, of three or five states, which has the most to say in the European Union.”

SEE ALSO: United States Says Britain Must Stay In The EU

Poland has historically been one of the United Kingdom’s closest allies within the EU. However strains emerged over the recent Budget negotiations, in which Cameron urged a cut in expenditure.

“If you ask me if people in Poland have noticed that Britain wants to cut the European budget by €200bn, where Germany is in favour of a more ambitious budget, I’m forced to tell you, yes they’ve noticed,” Sikorski told the Financial Times in November added.

A senior Polish foreign ministry official told the same paper: “The budget is simply the latest problem with the UK. Our roads have been diverging for some time.”

Sikorski, who studied at Oxford in the 1980s around the same time as Cameron, is said to be an Anglophile who wakes up the BBC Radio 4’s Today programme every morning.

Also on HuffPost:

Election Reform Should Be a Top Priority for the New Congress

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(Photo: Lucy Nicholson/ Reuters)On two major occasions–during his election-night speech and second inaugural address–President Obama has highlighted the need for election reform. “By the way, we have to fix that,” he said on November 6 about the long lines at the polls in states like Florida. Shortly thereafter, the cause of election reform seemed to fall by the wayside, with more pressing events, such as the Sandy Hook shooting and the fiscal cliff, dominating the news. But Obama returned to the issue on January 21, saying “our journey is not complete until no citizen is forced to wait for hours to exercise the right to vote.”

Now the question is whether the Obama administration and Congress will actually do something to fix the shameful way US elections are run. There are smart proposals in Congress to address the issue. The most comprehensive among them is the Voter Empowerment Act, reintroduced today by Democratic leaders in the House, including civil rights icon John Lewis, and Kirsten Gillibrand in Senate.

The bill would add 50 million eligible Americans to the voter rolls by automatically registering consenting adults to vote at government agencies, adopting Election Day voter registration, and allowing citizens to register to vote and update their addresses online. (As Attorney General Eric Holder noted recently, 80 percent of the 75 million eligible citizens who didn’t vote in 2008 were not registered to vote.) It would also guarantee fifteen days of early voting to ease long lines, restore the voting rights of felons after they’ve served their time and ban deceptive ads aimed at suppressing voter turnout. “It’s got almost everything in there that we think is important,” says Eric Marshall of the Lawyers’ Committee for Civil Rights Under Law.

The Voter Empowerment Act is supplemented by other worthwhile proposals in Congress. There is Senator Barbara Boxer’s LINE Act, which mandates national standards for a minimum number of voting machines and election workers in each precinct, and Senator Chris Coons’s FAST Act, which gives grants to states that conduct elections efficiently, modeled after Obama’s Race to the Top education initiative. Both Harry Reid and Nancy Pelosi have designated election reform as a top priority for the new Congress.

“It’s too early to tell what will pass, but there’s a lot of commitment to move these bills from their supporters, including Democratic leaders of both houses of Congress,” says Wendy Weiser, director of the democracy program at the Brennan Center for Justice. Obama has already announced an ambitious legislative agenda focused on gun control, immigration reform and climate change, but supporters of election reform believe the administration is ready to move on this issue as well. “They have stated this as a much bigger priority than it was before,” adds Weiser. “Based on my conversations with people in the administration, I’m convinced they are committed to figuring out how to contribute to a solution.”

The need for a fix is clear. A study conducted for the Orlando Sentinel found that 201,000 Floridians didn’t vote in 2012 because of long lines on Election Day. A separate study found that in-person early voting numbers decreased by 225,000 compared to 2008, when the state had six more days of early voting. Moreover, black and Hispanic voters bore the brunt of the state’s election problems. “African Americans and Hispanic voters were more likely than white voters to cast provisional ballots and nearly twice as likely to have their provisional ballots rejected,” according to University of Florida political scientist Daniel Smith and Dartmouth University professor Michael Herron. Additionally, “the African American absentee ballot rejection rate was nearly twice the absentee ballot rejection rate of white voters.”

In Ohio, another GOP-controlled state that curtailed early voting compared to 2008, large urban counties had wait times of one to four hours during the three days of voting before the election, while smaller counties had wait times of only thirty minutes to an hour, according to a by Norman Robbins of Northeast Ohio Voter Advocates.

The public wants its elected representatives to address these problems. A post-election poll found that 88 percent of 2012 voters support new national voting standards. By nearly two to one, the public is more concerned about “eligible voters being denied the opportunity to vote” rather than “ineligible voters getting to vote.”

“The moment calls for something big,” says Marshall. “There’s a desire for an overhaul. It’s just a question of the will.”

Any election reform deal will require Republican support, which so far hasn’t been forthcoming. “I don’t think it’s the federal government’s role to make sure there are no long lines,” Representative Candice Miller (R-MI), chairman of the House Administration Committee, recently told Politico.

Yet the news from the states shows that GOP resistance to making it easier to vote has cracked a bit. Florida Governor Rick Scott, who presided over a controversial cutback in early voting days, now supports expanding early voting and increasing the number of polling locations. Virginia Governor Bob McDonnell recently voiced his support for automatically restoring the voting rights of ex-felons.

These hopeful signs, however, are offset by a continuation of disturbing trends. GOP-controlled states like North Carolina are planning to pass new voter ID laws, while GOP state legislators in swing states like Michigan, Pennsylvania, Virginia and Wisconsin are trying gerrymander the Electoral College to boost the party in future presidential contests.

Such voter suppression efforts backfired on the GOP in 2012, getting blocked in court and motivating a larger turnout among young and minority Obama supporters. “The Republican Party should be a party that says, ‘We want everybody to vote,’ and make it easier for people to vote and give them a reason to vote for the party, and not to find ways to keep them from voting at all,” Colin Powell recently advised the GOP. Supporting sensible election reform efforts would be a good place to start.

© 2013 The Nation

The Last of the Big Money Elections?

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Supporters of clean elections rally in Chicago on January 19, 2013. (Photo: Public Citizen)Last November, Americans did more than suffer through the first SuperPAC presidential election, and they accomplished something more than the election of a president. Two states, Montana and Colorado, simultaneously approved ballot measures urging Congress to pass a constitutional amendment to overturn the disastrous Supreme Court ruling in Citizens United v. FEC.

One reason this is so exciting is that Montana, a red state that voted for Romney by 13 points, and Colorado, a swing state, are part of a growing movement in the United States to make an amendment happen. In fact, our country is now one quarter of the way to making it a reality.

As prescribed in Article V of the Constitution, the amendment process requires a two-thirds vote by both chambers of Congress, followed by ratification by three-quarters of the states. Today, three years after the infamous Supreme Court ruling, we’re closer than ever to hitting those magic numbers of 67 senators, 290 representatives and 38 states.

Here’s the rundown. In Congress, 24 returning senators and 73 returning representatives have introduced or co-sponsored amendments to overturn Citizens United. On the state side, Montana and Colorado have become the 10th and 11th states to formally call for an amendment, and are the first to do so through a statewide popular vote. Voters in both these states approved their measures by margins of nearly three to one.

Other states have used different means. Hawaii, New Mexico, Vermont, Rhode Island, California, Massachusetts, and New Jersey acted through their legislatures, passing formal resolutions calling for an amendment. In Connecticut and Maryland, majorities of state legislators signed letters to the U.S. Congress with the same request.

The movement has been growing at the local level, too. More than 350 cities, towns, and counties across the United States have called for an amendment, including New York City, Los Angeles, Chicago, and Philadelphia, and more than 2,000 elected officials nationwide are on record supporting one.

The movement to overturn Citizens United may well have arrived at a tipping point. Polling shows overwhelming public support for overruling the decision through the constitutional amendment process, as well as extraordinary support for limiting the amount of money corporations, unions and other groups can spend in elections. The support also cuts across party lines. Just look at Montana, a state that has only supported a Democratic presidential candidate once since 1968, but nonetheless resoundingly called for a constitutional amendment this November.

So while a record-breaking six billion dollars was indeed spent in last year’s election, it remains to be seen whether that number will be remembered as historic because it marked the beginning of a new age of big money in politics, or the beginning of its end.

Given the enormous progress the nation has made toward a constitutional amendment in such a short time, it’s possible that the 2012 election will actually mark the ascendency of the national movement to take back our democracy.

This work is licensed under a Creative Commons License

Opposition party threatens to expel top members over protests

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Ilya Ponomarev, State Duma deputy, the Fair Russia Party, seen at the rally against a ban on adoption of Russian children by US citizens. (RIA Novosti/Iliya Pitalev)

Ilya Ponomarev, State Duma deputy, the Fair Russia Party, seen at the rally against a ban on adoption of Russian children by US citizens. (RIA Novosti/Iliya Pitalev)

The presidium of leftist party Fair Russia has decided its members, including two MPs who took part in the latest Moscow protest march, must choose between their party membership and their work in non-system opposition.

Fair Russia announced the decision on Thursday, saying four of its members — Gennady and Dmitry Gudkov, Ilya Ponomaryov and Oleg Shein — had 30 days to decide if they prefer to remain in the party or quit and join the unregistered movement that they recently sided with. Dmitry Gudkov and Ilya Ponomaryov currently represent Fair Russia in the Lower House.

Gennady Gudkov also used to be an MP, but was voted out of the Duma for allegedly running a business while serving, which is against the law.

The presidium’s decision came after the four politicians took part in the January 13 protest in Moscow. The non-system Russian opposition launched this rally, dubbed ‘March against Scoundrels’ against the bill that bans US citizens and organizations from taking any part in the adoption of Russian orphans.

The protesters represented a significant part of the community which claims that this move deprives thousands of children of the chance to find new families in the United States. They also hold that for some sick children this can be a matter of life and death, as healthcare at home cannot offer them the services that can be found abroad.

After the march, MPs Gudkov and Ponomaryov officially asked the State Duma to cancel the ban on US adoptions. They said that they had little hope that their move will lead to any result, but they still wanted attention from colleagues, media and the public.

The State Duma passed the so-called Dima Yakovlev bill, part of which bans the US adoptions, with a unanimous vote and the latest polls show that the majority of Russians support this move.

Fair Russia accused the four party members of unethical behavior as they walked in the front ranks of the column carrying slogans that insulted parliamentarians. On January 13, some of the rally participants burned portraits of President Vladimir Putin and the Duma deputies who voted for the bill, prompting a police investigation.

At the end of the rally protesters threw all their posters into an industrial garbage collector for the camera, making a show of their actions.

One of the politicians named in Fair Russia’s ultimatum — Oleg Shein — has told the press that he was choosing to quit the leadership of the non-system opposition, but intended to continue his cooperation with it, as in his view the party decision did not limit him in this regard.

Gennady Gudkov, who continues to work in Fair Russia’s parliamentary faction despite of losing his parliamentary seat, said that he completely disagreed with his party comrades and added that the party bureau had no powers to pass the decision on his expulsion.

Dmitry Gudkov said in media comments that he did not intend to quit any political bodies he currently participated in, and if Fair Russia chose to expel him then so be it.

In the same address that contained the 30-day ultimatum, Fair Russia recommended to all of its members that they not take part in any street demonstrations organized by “other subjects of political activity.”

The Left Front coordinator Sergei Udaltsov, center, at the rally against the law that bans the adoption of Russian children by U.S. citizens. (RIA Novosti/Iliya Pitalev)
The Left Front coordinator Sergei Udaltsov, center, at the rally against the law that bans the adoption of Russian children by U.S. citizens. (RIA Novosti/Iliya Pitalev)

UN begins probe into civilian deaths in US and UK drone attacks

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In a file picture taken on January 8, 2013 a Pakistani demonstrator holds a burning US flag during a protest in Multan against drone attacks in Pakistan's tribal areas. (AFP Photo/S. S Mirza)

In a file picture taken on January 8, 2013 a Pakistani demonstrator holds a burning US flag during a protest in Multan against drone attacks in Pakistan’s tribal areas. (AFP Photo/S. S Mirza)

The UN has begun a probe into civilian casualties in US and UK drone strikes and their legal implications. This follows multiple claims the attacks are war crimes and encroachment on the sovereignty of the countries in which they are carried out.

A team of experts in Geneva has begun examining the details of several drone strikes with a view to establishing their legality.

The UN-backed report examines the use of drone strikes in Afghanistan, Pakistan, Yemen and Somalia, UN special rapporteur Ben Emmerson told the press in a statement. He mentioned that the Israeli use of the unmanned aerial craft on Palestinian territory would also come under scrutiny in the report.

The UN launched the probe into the attack after Pakistan along with two permanent members of the UN Security Council called on the international organization to investigate the legal validity of the attacks.

The probe will look at between 20 and 30 strikes, specially selected to represent different types of attacks. Investigators will look at civilian death tolls, the identity of the militants targeted and the legality of the attacks in their respective countries. In some of the countries where drones are active the UN has not declared a conflict zone.

“One of the questions we will be looking at is whether, given the local demography, aerial attacks carry too high a risk of a disproportionate number of civilian casualties,” said Emmerson to British newspaper The Guardian. He added that given the recent “explosion of drone technology” the risk of civilian casualties had increased.

The investigative committee will pay special attention to the so-called ‘double tap’ strikes, in which rescuers that come to help the initial victims of the strike are hit in a follow-up attack. Concerns have been voiced that this type of strike could constitute a war crime.

The report, which will be ready for presentation to the General Assembly this autumn, will not lead to an “attribution of legal liability,” but will allow allegations to be lodged against states which have violated international law.

Washington has repeatedly insisted that the use of drones is highly effective in the fight against militant insurgency, while Pakistani and Afghan politicians allege that they kill more civilians than militants.

­

Turning up the heat

Since the beginning of the New Year the US has stepped up its drone attacks in Pakistan, killing at least 40 people, 11 of whom are thought to have been civilians.

US officials claim the reasoning behind the ratcheting up of drone attacks is their 2014 troop withdrawal from neighboring Afghanistan.

These strikes “may be a signal to groups that include not just Al-Qaeda that the US will still present a threat” after most American forces have gone, counterterrorism expert Seth Jones of Rand Corp. told the Washington Post. “With the drawdown in US forces, the drone may be, over time, the most important weapon against militant groups.”

Pakistani rulers have reacted to the new US offensive with furor, condemning it as “close to a perpetual war.”

The Bureau of Investigative Journalism published a report in 2011, estimating the death toll from drone strikes at around 385 halfway through the year — 160 of those killed were children. Following on from that, the Foundation for Fundamental Rights published its own research in September 2012, claiming that only 2 per cent of strikes in Pakistan actually targeted high-profile terrorist leaders.

Demolish high-rise social housing, report says

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The housing crisis, crime and social alienation could all be tackled with the demolition of high-rise social housing blocks, a think tank report says.

They should then be replaced them with real streets made up of low rise flats and terraced homes, Policy Exchange said.

There are 140,000 households – 100,000 of which are social tenants – in England with children who live on the second floor or above, according to its report.

Some 260,000 new and better quality homes could be built in London alone over the next seven years by knocking down the unpopular, ugly, high-rise tower blocks and estates of the ’50s and ’60s that encourage crime and social alienation, says the Create Streets report.

Multiple studies show terraced streets can exceed the housing densities (between 75 and 200 units/hectare) of most existing high-rise housing developments, it states.

The existing planning system means major cities have built high density and high rise, box sized flats, the smallest in Europe and smaller than ever before in the UK.

The report’s author Nicholas Boys Smith said: “Between 2003 and 2007, there was a seven-fold increase in high-rise building even though social housing tower blocks are extremely expensive to build and maintain.

“There is a wealth of evidence that multi-storey living leads to higher crime rates, weaker communities, and poorer health and education outcomes for residents. Recent changes to the planning system give a chance to change this that local government and neighbourhoods should seize to take control of re-development in their area.

“These multi-storey estates are harmful and occasionally lethal. Only last week an inquest opened into the 2009 Camberwell Tower block fire in London which killed six people.

“With only one stairwell, escape was made difficult while falling debris from the initial fire set off multiple additional fires. The tower (Lakanal House) was due to be demolished but Southwark Council decided to refurbish it instead.”

The report goes on to state that residents of high-rise blocks or large estates suffer from more stress, mental health issues as well as marriage breakdowns.

“It’s time we ripped down the mistakes of the past and started building proper streets where people want to live,” said Mr Boys Smith.

“We must not repeat mistakes by building housing which makes people’s lives a misery. Bulldozing the high rise tower blocks and no-go zone estates and replacing them with terraced homes and low rise flats is the best way to build both the number and the quality of homes that we need.

“We call on neighbourhoods to have the confidence of their convictions, on landowners to look to their long-term returns not short-term density targets and on the Mayor’s Office to take advantage of the National Planning Policy Framework to rip up their super high density targets that, perversely, are discouraging development.”

Outside of London, one local council is apparently doing just that and has already begun the demolition of a block of flats long regarded as an eyesore by the town’s residents to make way for a new low-level housing development.

Wentworth Avenue tower block in Slough, Berkshire, is being pulled down as part of the wider regeneration of the Britwell estate, helped by an £800,000 investment from the Homes and Communities Agency.

Slough borough council says all the tower’s residents will be offered one of the new homes on the redeveloped site, which will include shops, a community centre and a library. All the tenants have been rehoused – either permanently or temporarily – while they await their new-build home.

James Swindlehurst, the council’s commissioner for neighbourhoods and renewal, told Sky News: “When high-rise demolitions are handled sensitively and as part of a wider package of regeneration, as in the case of Wentworth Towers, it can profoundly benefit local residents and the area as a whole.

“By getting rid of a 40-year-old eyesore that was hated by local people, we have not only been able to re-house its former occupants in the areas that they wanted, but provide additional quality family housing for local people.

“The project is transforming the neighbourhood – and both I and those in Britwell were delighted to finally see the block finally disappear into a pile of rubble.”

­Avatar director Cameron sued over film screenplay… again

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James Cameron (Reuters/Fernando Donasci)

James Cameron (Reuters/Fernando Donasci)

A US Court has ruled Avatar director James Cameron has to hand over drafts of the screenplay in another legal dispute over the origins of the story.

American Eric Ryder filed a lawsuit over the screenplay to the 2009 hit blockbuster in December 2011. He is seeking unspecified compensation from the director and his production company claiming a story titled “K.R.Z. 2068” he spent years working on is the basis for the hit film.

On Wednesday, Los Angeles Superior Court Judge Alan Rosenfield has ordered Cameron to hand over drafts of the screenplay for Avatar to lawyers for Ryder. “We have to be careful and sensitive about ideas and information,” the judge said.

Another American opened a lawsuit against Cameron on Monday. According to the Hollywood Reporter Elijah Schkeiban also claims his sci-fi novel “Bats & Butterflies” written in the late ’80s has been reworked into the Avatar screenplay.

Just weeks after Ryder’s lawsuit, another writer, Bryant Moore filed a suit seeking $1.5 billion in actual damages and another $1 billion in punitive damages from Cameron’s production company and 20th Century Fox, the studio behind “Avatar.”

Cameron has often spoken about Avatar saying he came up with the idea for “Avatar” movie in the early ’90s, but had to wait for years for the special-effects technology to catch up with his ambitious ideas.

Can Iran make a difference in Syria? Russia says ‘yes’

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Mahmoud Ahmadinejad, President of the Islamic Republic of Iran, speaks during the 67th session of the United Nations General Assembly September 26, 2012 at UN headquarters in New York. (AFP Photo/Stan Honda)

Mahmoud Ahmadinejad, President of the Islamic Republic of Iran, speaks during the 67th session of the United Nations General Assembly September 26, 2012 at UN headquarters in New York. (AFP Photo/Stan Honda)

Russia’s deputy foreign minister has called on the international community to give Tehran a chance to participate in ending the crisis in Syria.

­Moscow is confident that the Islamic Republic of Iran “can and must play a positive role” in finding a political way to reverse the conflict in Syria, Gennady Gatilov told reporters on Thursday.

“We think it unacceptable to ignore Tehran’s potential,” he emphasized. “We spoke about [Iran’s participation] before the first meeting in Geneva.”

Since March 15, 2011, Syria has been involved in a civil war between forces loyal to President Bashar Assad and a militant political opposition. Russia has been advocating a diplomatic solution to the bloodshed in an effort to avoid another “Libyan scenario,” referring to the West’s military intervention in Libya, which Russia harshly criticized.

Despite a crippling economic sanctions regime against Iran over its failure to cooperate with UN nuclear inspectors, Moscow is convinced that Tehran, given its strong relationship with the Assad regime, may hold the key for a solution to the Syrian crisis.

Tens of thousands of civilians have been killed in Syria since the beginning of the violence nearly two years ago.

To date, international mediators have been unable to get the warring sides to honor a ceasefire and enter into negotiations.

Russia is convinced Iran could play a constructive role in breaking the stalemate.

“We should involve the Iranians rather than isolate them; they are an important element in the architecture of regional security,” Gatilov noted. “Moreover, we have a strong impression that Iran is ready to make a constructive contribution to resolving the crisis.”

Syria, which is often referred to as Iran’s closest ally, sided with Tehran in the eight-year Iran-Iraq War (1980-1988), and the two countries have remained partners ever since.

It remains to be seen, however, how the international community will respond to any cooperation in Syria by Iran, which continues to attract suspicion over its alleged nuclear weapons program.

Tehran rejects the accusations, saying it is developing its nuclear potential in order to provide energy needs for its civilian sector.

Robert Bridge, RT

Cabinet Secretary Admits Ministers ‘Don’t Make Much Difference’

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Ministers do not make any impact on policy and are reshuffled for purely cosmetic reasons, the country’s top civil servant has admitted.

Sir Jeremy Heywood, the cabinet secretary, told MPs on Thursday that which politician had what job in government did not “make that much of a difference” as everything was run by David Cameron and Nick Clegg.

He told a Commons committee that shuffling the pack of ministers did “make a difference to how policy is presented” but had little impact on the actual business of government.

Sir Jeremy did concede that the personality of individual ministers do “change things around the edges”, but that was all given the comprehensive coalition programme for government.

“Any minster can come in and decide they want to add to the existing policies some new areas and new priorities,” he said.

He added: “The role of reshuffles on policy can be exaggerated.”

David Cameron conducted his first major reshuffle in September last year — in which numerous MPs were either promoted to, or demoted from, government.

Heywood said reshuffles were mostly as a way for the Cameron to control his parliamentary party. Prime ministers frequently by dangle job offers in front of potentially rebellious MPs in order to keep them in check.

Tory MP Eleanor Laing told Heywood her impression of reshuffle was they were like an Agatha Christie novel. “You start with one murder and then there is another and another consequent upon that,” she said.

Also on HuffPost:

Ahmadinejad warns of Shia-Sunni rift

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Iranian President Mahmoud Ahmadinejad has warned against evil plots aimed at causing division among Shia and Sunni Muslims, stressing the importance of reinforcing unity among Muslim nations across the world.

Addressing the closing ceremony of an international Quran competition of Muslim countries’ armed forces in the Iranian capital, Tehran, on Thursday, President Ahmadinejad denounced sectarian and tribal issues, saying that the Quran and Prophet Mohammad (PBUH) belong to all Muslims and even followers of all divine religions, including Jews, Christians and all human beings.

The president stated that incorrect interpretation of the Quran would cause problems, stating.

“The Zionist regime [of Israel] has established its dominance over a group of Muslims through deceit and lies, and Muslims are not united enough to confront this occupying regime because of different and incomplete interpretations of Quran.”

Ahmadinejad noted that many individuals and governments have claimed that they seek to promote freedom across the world, protect human rights, establish democracy and eradicate cruelty and discrimination “but they have turned into main elements of destruction of freedom and justice.”

The Iranian chief executive reiterated that the world is currently in need of unity and justice and eradication of discrimination and cruelty more than ever before.

SF/SS

‘In It Together?’

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Nick Clegg has reignited the “we’re all in this together” debate by saying he would not rule out sending his son to private school.

Speaking on his weekly LBC Radio show on Thursday morning, the deputy prime minister said “political reasons” would never determine his choice of education.

Clegg, who was educated at Westminster School, a private school directly opposite the Houses of Parliament, said the fight for places in good London state schools would be a factor in his decision.

clegg private school

Clegg and his wife, lawyer Miriam Gonzalez

He said: “If we can and it works out to send him to a good state we would do.

“But like all parents living in London, there’s huge competition for places and we don’t yet know where and exactly at what school.

“I never have sought to impose a decision on my wife as well as my son for political reasons.”

Last year the Lib-Dem leader said in a speech to the Sutton Trust: “Education is critical to our hopes of a fairer society.

“Right now there is a great rift in our education system between our best schools, most of which are private, and the schools ordinary families rely on.

“That is corrosive for our society and damaging to our economy.”

Two months later, a senior advisor to Ed Miliband said politicians who send their children to private school are “morally bankrupt”.

Lord Adonis, who was Tony Blair’s education guru before becoming transport secretary under Gordon Brown said that ministers need to “live and breathe” the public services they expect the public to use.

Michael Pyke of the Campaign for State Education (CASE) explained the main benefits of a private education are the social networks that are available, something which Clegg would already have access to as deputy PM.

He told the Huffington Post UK: “I would not expect there would be anything to gain from sending his son to private school.

“In fact I think it is a shame that he would deprive a state school of the benefits that he himself could bring.

“Someone of his standing would be an enormous asset to a state school.”

Quick Poll

Should Nick Clegg send his son to private school?

Clegg said during the phone in he did not want his children to become a “political football”.

He said: “I am a father before I am a politician.

“I want my child to have the best possible education. It’s the most fundamental instinct anyone has and I have that raging through my veins as much as any father.

“I am not going to make a political issue for my child’s education. I just want the best for my child.”

Topeka’s Cartoon Analyst Cuts His AAPL Price Target From $1,111 To $888

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Just because AAPL longs needed some more salt rubbed in their wounds, here comes Apple’s cartooniest analyst  who heretofore had the highest price target on AAPL some 140% higher than where it is now, and working at a firm named for a town in Kansas, cutting his fruitish $1,111 price target down to $888.

  • TOPEKA CAPITAL CUTS PRICE TARGET TO $888 FROM $1111; RATING BUY

So was $666 taken? And does Topeka Capital think having your number key stuck when determining a price target imputes credibility to one’s worthless research?

Your rating: None Average: 4.3 (3 votes)

What’s Next for Palestine?

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Bio

Raja Khalidi has spent most of his professional career with UNCTAD, where he is currently Chief, Office of the Director, Division on Globalization and Development Strategies. He holds a B.A. from Oxford University and M.Sc. from University of London SOAS. From 2000-2006, Mr. Khalidi was Coordinator of UNCTAD’s Programme of Assistance to the Palestinian people, which combines the analytical and operational expertise of the UNCTAD secretariat in an integrated manner. His assignments at UNCTAD have also dealt with Debt and Development Finance, the global economic crisis and institutional development and strategic management reform. His own publications include a book on the dynamics of Arab regional economic development in Israel and contributions on Palestinian economic development issues to the Palestinian Encyclopedia, the Journal of Palestine Studies, edited volumes, as well as Jadaliya online and Palestinian, Israeli and international media. The views expressed here are his own and do not necessarily reflect those of the United Nations.

Transcript

PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Baltimore.

In the Middle East, moves are afoot, to a large extent led by Qatar and its emir. He was in Gaza recently, and he seems to have made a deal, some people calling it a shotgun marriage, where Hamas and Fatah–Hamas recently moved its head offices to Doha, and now we have a sort of peace agreement between Hamas and Qatar. We’re told by our journalist in Gaza, everywhere you see a Palestinian flag, there’s a Qatari flag flying next to it. And Hamas is actually allowing people to protest, carrying the portraiture of Abbas, Abbas the head of Fatah and the PA. It’s a very interesting development, including the Muslim Brotherhood in Egypt, which seems to have managed the peace agreement with Gaza in a way that has pleased President Obama.Now joining us from Geneva is Raja Khalidi. He’s spent most of his professional career with the UN Conference on Trade and Development, UNCTAD, where he’s currently chief of the Office of the Director, Division on Globalization and Development Strategies. And I have to point out, the opinions he’s about to express are primarily his own; they’re not necessarily those of UNCTAD. Thanks for joining us, Raja.RAJA KHALIDI, SENIOR ECONOMIST, UNCTAD, GENEVA: Nice to be with you.JAY: So, first of all, what do you make of what’s going on, in terms of the UN recognition of Palestine as a nonmember state? And just what kind of Palestine does Qatar and others who are kind of moving pieces around on the chessboard, what kind of Palestine do you think is going to be built?KHALIDI: Well, I mean, with all of the regional, you know, transformations underway–and I think we haven’t seen the end of them–they’ve started last year in a certain vein, with a largely political, economic, social content. They’ve been transformed this year into bloody battles around the region, unfortunately. In some places standoffs between demonstrators and the new governments, in other places various protest movements and human rights advocacy campaigns are underway. So I think, you know, the region is certainly in transformation, and we haven’t seen the end of it, Arab Spring or not, whether or not we’re in an “Arab Winter”, as some would say. I think that’s the first–you know, and you correctly noted that as the first and most important determinant for the Palestinians in the current circumstances, where things might go. The second important issue, I think, that has changed the discussion in the last month or so is, of course, the recent battle in Gaza between the Israeli military and the Hamas, largely, and other factions who, as we all now, let’s say, fought to a standstill. In any case, as was–you know, we saw on Saturday with the huge celebration in Gaza, that’s certainly a factor that has now also come into the equation, both the internal Palestinian equation and, I think, the regional equation. The third important issue, of course, is that [crosstalk] mentioned [incompr.] the diplomatic–let’s say legal, also, to a certain extent–battle that’s been fought by the PLO to upgrade its United Nations status to that of a nonmember state. Hence it’s now referred to in the United Nations as the state of Palestine. So we’re talking, of course, here about the PLO, which is the representative of the Palestinian people. So that upgrade is largely–so far appears to be a procedural one, in the sense that it allows the Palestinians access to certain things, like maybe instruments and courses of diplomatic, legal recourse that they didn’t have, perhaps, before, but most importantly, I think, because it was a successful effort to get the world–large majority of the world to state, you know, very clearly its support for a two-state solution, most importantly for the establishment of the Palestinian state, the Palestinian rights, national rights, and sovereignty, and for the existence of state of Palestine, you know, more or less implicitly, though not so clearly in the resolution, on the ’67 border. So that moment of global solidarity, I think this should not be underestimated, and the fact that, you know, both the Hamas as well as the Arab governments supported that effort.And the outcome, I think, is also indicative [incompr.] referred to pictures of Abbas being carried in Gaza, and, you know, to which one could add the presence of a Fatah delegation in Gaza on the celebrations of the 25th anniversary of Hamas. And there’s clearly talk in the air of national reconciliation. So, you know, I think the United Nations, whoever, except for, you know, really, some governments, have largely supported the idea of Palestinian reconciliation. And now it’s on the cards in a way that is more acceptable to the international community, it would appear, and to the region’s main players than it was perhaps a year or less [incompr.] These are all factors which change the regional landscape but don’t necessarily change anything on the ground as far as the Palestinians are concerned. So when you ask what sort of state we can expect to come out of this, I don’t think any state–I don’t think from–I mean, at least from the status of the peace process, I don’t think we can expect any state to come out of this. We haven’t seen a change in Israel’s position. On the contrary, we’ve seen a hardening of the Israeli position regarding settlement of the West Bank. We haven’t really seen anything in the way of a durable ceasefire that could ensure for the people. . . . Yeah. So, I mean, we haven’t, I mean, seen in–as a result of the Gaza conflict, we haven’t seen a relief of the siege of Gaza. So people in Gaza haven’t really felt anything new as a result of a very hard-fought and widely publicized battle. So, I mean, as I said, I think the prospects for a Palestinian state haven’t looked good for a long time, and they don’t look any better, to me, at least, today as a result of–notwithstanding the diplomatic, military, if you wish, and regional diplomatic sort of pluses that the Palestinians have chalked up in the last few weeks.JAY: A Palestinian friend of mine, his theory of what’s happening here is: Qatar, together with Saudi Arabia and in cooperation with the United States, the sort of plan is to develop the economy in Gaza and the West Bank and develop Gaza in a way that it becomes more and more integrated with Egypt, and Egypt under the Muslim Brotherhood sort of manages Gaza. And in the West Bank, again, investment from Qatar and others develop the economy there in a way that strengthens the links with Jordan. He saw the whole thing as sort of the–his quote was this is the end of the Palestinian project.KHALIDI: Well, the end of the–the first person to say that was, I think, a Palestinian scholar in 2005, who said that with Arafat’s death, the Palestinian national movement would start to come apart. In many ways, the last five years, six years have seen that sort of a disassembling of what was otherwise a fairly united national project now scattered into two regional, you know, political projects, as well, I mean, regional in the sense of Gaza and Ramallah, two different, separate Palestinian political entities, if you wish, political systems. And everything else we’ve seen in the way of disunity, if one can use that word in the Palestinian political and geographic and economic and international and regional relations sort of map. And now the fact that capital in the region might–I mean–or the idea that capital in the region might flow into Gaza or to the West Bank more readily than it has, let’s say, in some better periods, i.e. periods where things were looking up, the Oslo period, for example, or even the last few years in the West Bank, you know, that it’s going to somehow transform the economic prospects, I think, is unlikely. You know, there’s very little what we call–in Arabic we use the word [incompr.] brave capital, courageous capital that’s really willing to put its feet down in Palestinian–in investing in Palestine. So, you know, there’s a Palestinian capital out there that could come back. So I don’t see a major, you know, resource transfusion. We have this–yesterday we heard about this safety net, financial safety net approved by the Arab League. Basically, it’s saying that, you know, if the Israelis cut off the tax revenue that’s due for transfer to the PA, the Palestinian Authority, then the Arabs will step in and foot the bill, which is really, you know, almost–you know, which is a good safety net for a short period, but it’s not really a sustainable one. In Gaza, you’re right, there was this–there were major pledges for infrastructural development projects, and I think from Qatar prior to the last fighting. And those might actually–you know, now, in fact, you know, there’s probably even more to reconstruction than there was before.But I don’t think that, you know, that’s–again, you know, we’ve had these spurts in Palestinian economic history of either donor-funded or remittance- (in some cases) funded or labor from–you know, wages-from-income-funded growth spurts, which led to, in some cases, some prosperity here and there, what we’ve called in UNCTAD, you know, individual prosperity and communal impoverishment. And we could see the same sort of–you know, especially in Gaza, because I don’t think the West Bank has that, is really–you know, has anywhere to grow, whereas Gaza has a lot, still, to recover from. There’s a lot of, you know, major infrastructural and social expenditures that could be envisaged there. And that will–you know, that could delay certain things, but we’ve always seen–you know, the thing comes back and bites any economic piece or any, you know, prosperity booms in the rear very badly. And it’s happened–you know, it happened in 1987 with the First Intifada. It happened again after Oslo twice, both in the mid ’90s, and then in 2000. The Second Intifada, we’ve had it again and again in Gaza. So, I mean, I think that the main issue is mainly occupation, lack of sovereignty, extremely limited, if any, economic policy space, even for the Gaza–government in Gaza, especially for the PA, in terms of its–the nature of its economic agreements and security and Oslo and Paris so-called agreements with Israel. I don’t see anything yet that’s–you know, with all of the links that might exist between the Hamas, Palestinian Muslim Brotherhood and their other–Egyptian and others, there are other very important forces at play. I mean, you know, the Iranian support for–the military support that has reached Gaza can’t be discounted. There’s a situation in North Sinai of lawlessness, which the Egyptian government hasn’t gotten its handle on, hasn’t gotten a handle on. And I think–you know, it worries Israel, and even worries Hamas, because it’s a Salafi–sort of armed Salafi–not insurgency, but lawlessness, as I said, in the northwest Sinai. And then you have everything that’s happening in Syria and Jordan in terms of regime change or potential, you know, reform, constitutional reform in Jordan. So, you know, I think the key player here in all this, even though I’ve, you know, made the tour of the Arab world, the key player is really Israel. I mean, the party that has it in its hands to change the prospects for a Palestinian state or a Palestinian economy, or even, you know, some achievement of Palestinian rights, is Israel. And, you know, we haven’t seen any moves except, you know, further consolidation. This extraordinarily, you know, sensitive settlement plan in this area east of Jerusalem, E1, is certainly not–not to mention the tax issue, the revenue withholding. I mean, you know, that could go on as a short-term punishment, but I don’t think the PA can live with it for very long. And already I think President Abbas, when he addressed the Arab League the other day, unfortunately, I think this has, you know, given us an example of the limitations of the state–status of being a state that the PLO is accorded in the UN is that he announced to them, he says that we’re fast approaching becoming a collapsed state, basically, you know, probably the fastest failed state in history, between November 29 and–you know, only because we have one month of Israeli-, you know, channeled tax revenue withheld. And that’s problematic. I mean, you know, it’s problematic when you talk about state institutions that are supposedly there ready to function, and all that is needed is the magic wand of a political agreement. That’s–you know, that’s more easier said than done.JAY: So, in the next segment of our interview, let’s talk further about just what kind of economy is going to be built in Palestine and Egypt, other countries of the Arab Spring. People were demanding democracy, but not just political democracy. People want something in terms of their economy. So please join us for the next segment of this interview on The Real News Network.

End

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.


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Graphic ‘Graph Search’: New Facebook system reveals too much

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Introducing its new search engine, Facebook assured users that the system is strongly privacy aware. However, prank searches made by one of the beta testers have revealed that the system may expose just a bit more people would want.

­The new ‘Graph Search’ system was presented by Facebook founder Mark Zuckerberg and his team last week. The engine was designed to search Facebook for specific information, be it a Mexican restaurant your Facebook friends like the most or single people from India in your neighborhood.

The current Graph Search is a beta version still to be tested; it is limited to searches of people, their likes, places, interests and photos. Posts and status messages so far are out of reach, but soon may become searchable as well, Forbes reported.

During the presentation Zuckerberg and his crew devoted a special part to the issue of Facebook privacy. They assured the audience that the engine is only going to process data that has been allowed to be processed by the users themselves.

To demonstrate the system at work the team conducted a number of sample searches including ‘Friends who like Star Wars and Harry Potter’, ‘Languages my friends speak’, ‘Music liked by people who like Mitt Romney’ and ‘Music liked by people who like Obama’.

However, one of the people invited to test the beta version of the engine soon found out that Graph Search can find way more than Star Wars fans and music preferences of Obama supporters.

In his blogpost published on Wednesday, computer programmer and ‘Gadget Geek’ Tom Scott revealed some peculiar searches he conducted using Graph Search. The results turned out to be quite controversial, if not scandalous.

Scott found out that the new search engine will readily find ‘Married people, who like prostitutes’ and ‘Spouses of married people who like Ashley Madison’, a dating website for people who are already in a relationship.

Furthermore, he was able to find ‘Islamic men interested in men who live in Tehran, Iran’, where homosexual relations are prohibited by law and ‘Places where they’ve worked’.

Something corporate America would not like — a search exposing ‘Current employers of people who like Racism’.

These are just some of the searches Scott was able to do using the new Graph Search. When posting the results, he blurred the names and the pictures of those he found.

Commenting on his research, Scott said that although the search does not directly violate Facebook privacy settings, users just need to be aware of the new search engine capabilities and might want to reconsider the information they put on the web.

“If it’d be awkward if it was put on a screen in Times Square, don’t put it on Facebook. Oh, and check your privacy settings again,” he said.

Facebook has repeatedly been accused of violating the privacy of its users. In early January, the EU pressured the world`s most popular social network to provide more data protection. In September, Facebook was forced to stop using its facial recognition software in Europe following an investigation by the Office of the Data Protection Commissioner in Ireland.

Envy and dissatisfaction on Facebook

A recent study conducted by German scientists revealed that envy and dissatisfaction are among most popular feelings Facebook users experience while browsing through their friends’ ‘timelines’.

The survey of some 600 Facebook users showed that one third of them have negative feelings as using the social network mostly because they are envying their ‘Facebook friends’, whose life seems more interesting and wholesome than their own.

“Although respondents were reluctant to admit feeling envious while on Facebook, they often presumed that envy can be the cause behind the frustration of ‘others’ on this platform — a clear indication that envy is a salient phenomenon in the Facebook context,” said project manager Dr. Hanna Krasnova from Humboldt-Universität.

She explained that access to positive news and the profiles of seemingly successful friends bolsters social comparison, which can easily provoke envy.

The survey found that about one-fifth of all recent online and offline events provoking envy among respondents were posted on Facebook. According to the researchers, respondents’ envy often led to “embellishing their Facebook profiles” creating what they called “envy spiral.”

It was also established that the envy provoked by looking through Facebook lead many to “greater life dissatisfaction”.

“Considering the fact that Facebook use is a worldwide phenomenon and envy is a universal feeling, a lot of people are subject to these painful consequences,” Co-author Helena Wenninger of TU-Darmstadt University said.

Toyota and BMW to jointly develop fuel-cell vehicles and sports car

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This handout picture, taken by Japanese auto giant Toyota Motor on January 24, 2013 shows Toyota president Akio Toyoda (L) shaking hands with German auto giant BMW CEO Norbert Reithofer as they agreed several strategies including the possible joint development of a mid-sized sports vehicle in Nagoya in Aichi prefecture, central Japan on Janaury 24, 2013. (AFP Photo/Toyota Motot)

This handout picture, taken by Japanese auto giant Toyota Motor on January 24, 2013 shows Toyota president Akio Toyoda (L) shaking hands with German auto giant BMW CEO Norbert Reithofer as they agreed several strategies including the possible joint development of a mid-sized sports vehicle in Nagoya in Aichi prefecture, central Japan on Janaury 24, 2013. (AFP Photo/Toyota Motot)

Toyota Corp. and BMW AG have agreed to jointly develop fuel-cell vehicles, research lithium-air battery and construct a sports car.

­The world’s biggest carmaker by sales and world’s leading producer of gasoline-electric hybrid vehicles, Toyota will cooperate with one of Europe’s oldest automotive manufacturers, BMW AG on conducting research into the lithium-air battery. It is thought to be more powerful than current lithium-ion batteries used in many hybrid and electric vehicles.

The two companies also agreed to collaborate on a fuel-cell system, lightweight technology and electric powertrains. The carmakers will also jointly design a new sports car, the companies reported Thursday.  

As part of the agreement, BMW AG is due to supply Toyota with 1.6-liter and 2-liter diesel-powered engines for its models for European consumers as of 2014. The cooperation is expected to boost the Japanese carmaker’s line up in the European market.

The two companies say they have no plans for a capital tie-up.

Faber To Shiller: “You Keep Your U.S. Dollars And I’ll Keep My Gold”

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From GoldCore

Faber To Shiller: “You Keep Your U.S. Dollars And I’ll Keep My Gold”

Today’s AM fix was USD 1,677.00, EUR 1,258.06, and GBP 1,059.18 per ounce.
Yesterday’s AM fix was USD 1,692.25, EUR 1,268.84, and GBP 1,066.19 per ounce.

Silver is trading at $31.92/oz, €24.05/oz and £20.26/oz. Platinum is trading at $1,692.75/oz, palladium at $718.00/oz and rhodium at $1,200/oz.


Cross Currency Table — (Bloomberg)

Gold fell $4.90 or 0.29% in New York yesterday and closed at $1,685.60/oz. Silver fell to $32.08 in Asia then rallied to a high of $32.47 in the afternoon in NY trade, but then it dropped off in the last few hours and finished with a gain of just 0.25%.

Gold edged down in most currencies on Thursday, easing off the one month high hit earlier in the week. More speculative players may be taking profits after the recent run from $1,625/oz to over $1,695/oz or 4.3%.

It is noteworthy that while gold is weaker in most currencies today it is again higher in Japanese yen as the yen has fallen sharply on the international markets due to concerns that the yen will be devalued in the coming months.

Gold in yen terms remains near record multiyear highs above 0.150 million yen per ounce. New nominal highs in yen terms above 0.2 million yen per ounce are only a matter of time (see charts). 

Bloomberg reported that Credit Suisse says gold holders may have withdrawn gold from the euro zone due to the region’s debt crisis. They noted the Bundesbank comment about capacity becoming available in its own vaults in Germany.

The World Economic Forum is into its second day in Davos, Switzerland, and with the theme of ‘Resilient Dynamism’ it appears a good time to announce or spin positive news in Europe such as a slight growth in consumer morale and confidence.  

I’m not sure what Europe the Davos attendees are living on but Ireland, Spain, Portugal and Greece’s ‘recoveries’ are bleak at best.

Spanish youth unemployment has risen again and is now nearly at 60%.

The U.S. House of Representatives passed a Republican led plan to allow the federal government to keep borrowing money through mid-May.

The borrowing and money printing party can continue a little while longer but it would be prudent to prepare for the hangover. 

Owning physical gold today is akin to drinking plenty of water and having a few pain killers to hand. When this party ends, those not owning gold are going to suffer one hell of a financial hangover.


XAU/JPY Daily, 2 Years — (Bloomberg)

“Everyone should keep gold in their portfolios” as the precious metal will be able to offer value to investors even in a worst-case scenario, said Marc Faber, the publisher of the Gloom, Boom & Doom report.

“In the worst case scenario, in the systemic failure that I expect, it would still have some value,” Faber, who is also the founder and managing director of Marc Faber Ltd., said today at an event hosted by Evli Bank Oyj in Helsinki.

Faber said his outlook was so bleak that he is “hyper bearish”. He joked that “sometimes I’m so concerned about the world I want to jump out of the window.”

He wisely said that `I advise everyone to have some gold.’

Faber said that he thought there could be a flight out of cash and overvalued bonds and into equities and gold. 

In response to a question from Yale University’s Robert Shiller querying the recommendation to hold gold, Faber said: “I’m prepared to make a bet, you keep your U.S. dollars and I’ll keep my gold, we’ll see which one goes to zero first.”


XAU/JPY Quarterly, 1971-2013 — (Bloomberg)

Shiller, who is the co-creator of the S&P/Case-Shiller index of property values, responded “I’m inclined to think gold prices after this crisis might return to a lower level. Given the low yields of the alternatives [ie, bonds], the valuation of the stock market doesn’t look so bad.”

Faber, whose advice has protected millions of investors in recent years, warned of a global systemic crisis possibly due to massive size of the global derivatives market which is now worth over an incredible $700 trillion.

He warned “when the system goes down,” and only plastic credit cards are left, “maybe then people will realize and go back to some gold-based system.”


What’s Going To Happen To The Price Of Gold And Silver In 2013?

Join us for a webinar on Jan 30, 2013 at 1300 GMT.

?  Register now!

Join two experts – Money Week columnist, Dominc Frisby and GoldCore’s Head of Research, Mark O’Byrne for a one hour webinar as they discuss the outlook for gold and silver in 2013. 

 
NEWS

Gold Seen Extending Rally as Fed Sticks With QE3 for Years – Bloomberg

Strong Silver Jewelry Sales Reported During 2012 Holiday Season — The Silver Institute

Gold drifts from 1-mth high, ‘recovery’ hopes dull appetite – Reuters

Currency war talk not appropriate — IMF chief economist – Reuters

COMMENTARY

The One Chart That Explains the Massive Risk of Investing in Gold & Gold Stocks — Zero Hedge

How Far Up Could Silver Go? – Minyanville

Video: undesbank’s Thiele on Gold Relocation – Bloomberg

Central bankers should be brought to heel by elected parliaments — The Telegraph

For breaking news and commentary on financial markets and gold, follow us on Twitter.

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Cancer fears raised over horse meat

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A potentially carcinogenic drug may have entered the food chain through horse meat slaughtered in the UK, Labour has claimed.

Shadow environment secretary Mary Creagh told the Commons she had evidence that “several” horses slaughtered in the UK last year tested positive for the carcinogen phenylbutazone.

Her claim comes days after the separate revelation that burgers sold by some supermarkets contained traces of horse meat. Ms Creagh said: “I am in receipt of evidence showing that several horses slaughtered in UK abattoirs last year tested positive for phenylbutazone, or bute, a drug which causes cancer in humans and is banned from the human food chain. It is possible that those animals entered the human food chain.”

Agriculture minister David Heath replied that the Food Standards Agency (FSA) checked all meat to ensure it was fit for human consumption, saying: “The Food Standards Agency carry out checks in slaughterhouses to ensure that equine animals presented for slaughter are fit for human consumption in the same way as they do for cattle, sheep and other animals.

“In addition, the FSA carry out subsequent testing for phenylbutazone and other veterinary medicines in meat from horses slaughtered in this country. Where positive results for phenylbutazone are found, the FSA investigates and takes follow-up action to trace the meat.”

Ms Creagh questioned whether that meant Mr Heath was aware of the issue. “I’m astonished that you have not raised this and I think the public have a right to know,” she said.

The claim that bute could have entered the food chain follows the revelation that burgers sold by Tesco and other supermarkets contained traces of horse meat. Ten million burgers have been taken off supermarket shelves across Ireland and the UK as a result of the scandal. Suppliers in the Netherlands and Spain have been identified as the possible sources for incorrectly labelled ingredients.

Responding to Ms Creagh’s claims, the FSA said: “Horses which have been treated with phenylbutazone or ‘bute’ are not allowed to enter the food chain.

“The FSA carries out checks in slaughterhouses to ensure that horses presented for slaughter are fit for human consumption, in the same was as they do for sheep and cattle, etc. The FSA also carries out regular enhanced sampling and testing for phenylbutazone in meat from horses slaughtered in the UK.”

The FSA added: “During the recent horse meat incident the Food Safety Authority of Ireland (FSAI) checked for the presence of phenylbutazone and the samples came back negative.”

Army defuses bombs in western Syria

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Syrian Army soldiers stand at a checkpoint in a northeastern suburb of the capital, Damascus. (File photo)

Syrian soldiers have defused a number of roadside bombs in the west of the country as the Army continues its operations against foreign-backed militants, Press TV reports.

Army units on Thursday defused five explosive devices planted on a road near the city of Homs.

Heavy fighting was reported in the capital, Damascus, as well as in the southwestern city of Dara’a.

Sixteen militants were killed in the clashes with government forces.

Meanwhile, the Syrian minister for religious endowments (Awqaf) called for million-man prayers at mosques on Friday for the restoration of security in the country.

Mohammed Abdul Sattar said Syria will prevail against the conspiracy that has been hatched by hostile states and led by Wahhabi infidels from abroad.

Syria has been experiencing a deadly unrest since March 2011. Many people, including large numbers of army and security personnel, have been killed in the prolonged turmoil.

Damascus says the chaos is being orchestrated from outside the country, and that a very large number of the militants operating in the country are foreign nationals.

MRS/HMV

WATCH: Boris Johnson Declared Future PM

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The last time Boris Johnson was notably accosted and forced to converse with passers-by they were calling him a “Tory c**t” to which he replied “Lefty Tossers!”.

In Davos, Switzerland, although the snowy surroundings are colder, the crowds are a little warmer to the London mayor.

During a walking interview with Bloomberg, Johnson has his hand grabbed by a fan who turns to the camera declares him “the future Prime Minister”.

Lets hope the unidentified chap doesn’t run into David Cameron further down the road.

­Berezovsky court saga: Oligarch sued by ex-lover demanding millions

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Russian oligarch Boris Berezovsky and his partner Elena Gorbunova (Reuters/Neil Hall)

Russian oligarch Boris Berezovsky and his partner Elena Gorbunova (Reuters/Neil Hall)

Exiled Russian tycoon Boris Berezovsky faces just another lawsuit – his ex-lover demands almost US$8 million compensation. The UK court ordered to freeze oligarch’s assets, worth millions, in order to make the payment if he loses the case.

Elena Gorbunova, Berezovsky`s partner of 20 years and the mother of two of his children, who broke up with the tycoon last year, claims he owes her one fifth of the money he received after selling his home in Surrey. The house was estimated at 25 million pounds (some $40 million). She also says her ex-partner is trying to sell two properties in the South of France which he promised to her.

Gorbunova, who is in her early 40s, filed the case in 2012, but it was held privately up until now when the press urged the judge to make the hearings public.

According to the ruling made by Judge George Mann on January 18 and released on Wednesday, Gorbunova won an asset-freeze of Berezovsky`s luxury properties in France. The initial figure was 200 million pounds, but it was reported that the judge reduced the sum.

“On the evidence, Mr. Berezovsky is a man under financial pressure. It is likely he will feel a more pressing need to satisfy creditors than satisfy Ms. Gorbunova,” Judge Mann said, adding that she is “fearful that she will not receive the proceeds of any such sale because Mr. Berezovsky needs the money for himself.”

Gorbunova is not the first woman seeking a substantial compensation for her years with the notorious Russian tycoon.

In 2011, his ex-wife Galina Besharova received what became the biggest divorce settlement in the UK — some 100 million pounds (over $150 million).

The Russian runaway oligarch`s fortune has significantly decreased in recent years due to the number of scandalous court cases that saw him paying millions of dollars in compensation and  legal expenses.

The latter in the series was his court battle with another Russian oligarch and the owner of Chelsea football club, Roman Abramovich. Berezovsky accused Abramovich of using his ties with the Kremlin to make him sell Sibneft, a profitable oil company, at a low price in the 1990s.

Berezovsky lost the case in August 2012 and was left with paying bill for legal expenses reportedly reaching 40 million pounds (approximately over $63 million).

His lawyers also report that Berezovsky has cumulative debt around 200 million pounds (over $300 million).

As of 2012, Forbes estimated Berezovsky’s fortune at $700 million. However, the account may have included some assets the oligarch is no longer in procession of.

Frontrunning: January 24

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  • When the cash runs out dividends go away: Nokia to Omit Dividend for First Time in 143 Years (BBG)
  • Passing Debt Bill, GOP Pledges End to Deficits (WSJ)
  • Japan logs record trade gap in 2012 as exports struggle (Reuters)
  • so naturally… Yen at 100 Per Dollar Endorsed by Japan Government’s Nishimura (BBG)
  • Japan rejects currency war fears (FT)
  • Investors grow cagey as Italy election nears (Reuters)
  • In Amenas attack brings global jihad home to Algeria (Reuters)
  • Mafia Victim’s Son Holds Key to Bersani Winning Key Region (BBG)
  • Bernanke Seen Pressing On With Stimulus Amid Debate on QE (BBG)
  • U.S. to lift ban on women in front-line combat jobs (Reuters)
  • Red flags revealed in filings of firm linked to Caterpillar fraud (Reuters)
  • Apple Sales Gain Slowest Since ’09 as Competition Climbs (BBG)
  • Spanish Jobless Rate Hits Record After Rajoy’s First Year (BBG)
  • North Korea Threatens Nuclear Test to Derail U.S. Policies (BBG)

Overnight Media Digest

WSJ

* Apple Inc recorded a flat profit despite selling 18 million more iPhones and iPads as it spent heavily to roll out new products to fend off intensifying competition.

* The U.S. House of Representatives defused one potential debt crisis Wednesday, while a top Republican set the stage for a far broader debate over whether it is possible to actually balance the U.S. budget in coming years.

* A government informant has implicated a prominent former trader at SAC Capital Advisors, telling federal investigators the two swapped confidential stock tips for years, according to people briefed on the matter.

* NYSE Euronext has no intention of selling its European unit to a rival following a planned takeover by IntercontinentalExchange Inc, according to NYSE Euronext’s chief executive.

* The value of Goldman Sachs Group Inc’s investment portfolio doubled last year. Bond underwriting hit a five-year high. The firm’s workforce shrank and remaining employees were paid a smaller chunk of overall revenue.

* General Dynamics Corp swung to a fourth-quarter loss, posting a $2 billion write-down in its information-technology business that Chief Executive Phebe Novakovic called a “reset”.

* McDonald’s Corp’s fourth-quarter earnings beat expectations, reversing two quarters of misses, but the world’s largest restaurant chain said it expects tough times ahead.

* Netflix Inc capped a turbulent year by posting a surprise fourth-quarter profit and adding more Internet subscribers than expected, news that sent its stock rocketing about 35 percent in after-hours trading.

* As Novartis AG Chairman Daniel Vasella steps down from the company he helped build over 25 years, he leaves behind one of the health-care industry’s most admired firms – but also some shareholder resentment and big questions about Novartis’s future.

* Loretta Fredy Bush, the high-profile founder of China’s Xinhua Finance Ltd who was later indicted over an alleged $50 million fraud, has agreed to a plea deal and appears poised to plead guilty to a reduced charge.

FT

FSA PROBES ICAP OVER LIBOR FIXING ICAP, the world’s largest interdealer broker, has become a focus of the UK Libor rate-rigging investigation and is being investigated by the UK financial watchdog for possible breaches of market conduct rules. () CAMERON PUTS EU FUTURE ON THE LINE David Cameron put Britain’s future in the EU on the line in an audacious gamble that united his Conservative party but could have profound implications for the country.

UK LABOUR MARKET DEFIES GLOOM The puzzle of Britain’s productivity performance grew on Wednesday, with an unexpectedly buoyant set of employment figures ahead of Friday’s output data for last year’s fourth quarter, which many economists think will show a dip.

GMG ENDS TALKS TO SELL TRADER STAKE Guardian Media Group has called off talks with interested buyers over the sale of its half stake in the car classifieds company Trader Media Group following a failure to agree a price. Apax, its joint venture partner in Trader Media, had been interested in buying out the 50.1 per cent owned by GMG in a deal that would have netted the publisher of the Guardian and the Observer around 300 million pounds in cash.

CHINESE FUND AND SCHMIDT-BACKED BANK UNITE A boutique merchant bank backed by Google executive chairman Eric Schmidt has struck a deal with a Chinese state-owned fund to work together on media, sport and entertainment acquisitions. Raine’s partnership with China Media Capital, which manages a Rmb5bn ($805m) fund, is the latest sign that China’s nascent but fast-growing media sector is keen to borrow expertise and contacts from established western operators.

NYT

* Investors have come to expect nothing short of perfection from Apple Inc but with the company’s stock sinking 11 percent, it is clear there are a range of challenges.

* Avoiding an economic showdown with President Obama, the House on Wednesday passed legislation to eliminate the nation’s statutory borrowing limit until May, without including the dollar-for-dollar spending cuts that Republicans once insisted would have to be part of any debt limit bill.

* Prime Minister David Cameron of Britain has added to Europe’s malaise, vowing to reduce British entanglement with the European Union – or allow his people to vote in a referendum to leave the bloc altogether.

* Daniel Vasella, the longtime chairman and former chief executive of Novartis, the Swiss drug maker, plans to step down next month, the company said on Wednesday, when it also reported a jump in fourth-quarter profit.

* The International Monetary Fund said on Wednesday that it continued to expect a modest upturn in global growth in 2013, with fewer risks of major policy mistakes and lower levels of financial stress.

* Netflix Inc reported $8 million in net income, surprising analysts who had expected a slight loss. It increased the number of subscribers for its streaming service to 27 million.

* The Boeing 787’s difficulties have raised questions about how regulators certify new technology and how they balance advances in design and engineering with safety.

* Japan on Thursday reported a record annual trade deficit in 2012, the second straight year in the red for an exporting nation that has long built its wealth on its vast trading surpluses.

* A survey of manufacturing activity in China on Thursday provided more reassurance that the Chinese economy, buoyed by somewhat improved global trade and a string of government stimulus measures last year, has settled into a muted recovery.

* US Airways Group Inc reported on Wednesday that its net income doubled in the fourth quarter from a year earlier, and its executives said strong passenger demand for the airline could lead to higher fares.

* The long decline in the number of American workers belonging to labor unions accelerated sharply last year, according to data reported on Wednesday, sending the unionization rate to its lowest level in close to a century.

Canada

THE GLOBE AND MAIL

* Nigeria, the leading power in West Africa, wants Canada and other western nations to take on the conflict in Mali as an international problem and provide funding and heavy equipment like helicopters.

* As Canadian finance minister Jim Flaherty prepares the Conservative government’s 2013 budget, his main target will be to balance the books by 2015. With that horizon in mind, economists see several reasons for him to be optimistic, including positive signs from the United States and European economies, as well as the country’s housing market.

Reports in the business section:

* The Bank of Canada is setting aside worries over a housing bust to double down on a broader concern, the country’s sputtering economy.

The central bank surprised Bay Street and Wall Street on Wednesday by dropping from its latest policy statement any hint that it would raise interest rates to deter Canadians from bidding up housing prices and adding to record levels of household debt.

* RBC Dominion Securities raised its price target for Research In Motion Ltd to C$19 from C$11 ahead of the crucial launch of the smartphone maker’s BlackBerry 10 devices, but warned that it is “far too early” to call the company’s turnaround a success.

NATIONAL POST

* Canadian Prime Minister Stephen Harper said he was searching for a “consensus” within Canada and the Parliament on how to contribute to stopping the spread of terrorism in Mali, but he would not allow a direct Canadian military mission into the African country.

* Manitoba chiefs are not poised to cede from the assembly of First Nations, but leaders gathered in Winnipeg on Wednesday raised questions about the national body’s mandate to represent aboriginals on treaty issues.

FINANCIAL POST

* Bombardier Inc CEO and President Pierre Beaudoin said he hopes that its CSeries airliners will take its first flight in June, demonstrating that the Quebec transportation giant has learned the lessons from Boeing Co’s difficulties with its 787 Dreamliner.

* The Canadian and global economies will continue struggling to maintain momentum this year, but in a relatively hopeful new outlook, the International Monetary Fund (IMF) said it saw light at the end of the tunnel.

The IMF now expects Canada’s economy to expand by a modest 1.8 percent this year and by 2.3 percent in 2014.

China

CHINA SECURITIES JOURNAL

–The value-added growth of large industrial enterprises is expected to rise 10 percent, said Zhu Hongren, chief engineer at the Ministry of Industry.

–The Industrial & Commercial Bank of China, the world’s biggest bank by market value, said the volume of its renminbi cross-border business hit over 1.5 trillion yuan ($241.24 billion) in 2012, rising 70 percent from a year earlier.

SHANGHAI SECURITIES NEWS

– Hong Kong is working closely with Chinese authorities to promote the mutual recognition of investment funds, which would pave the way for these funds to be sold into both sides of the market, said the deputy chief executive of Securities & Futures Commission of Hong Kong.

– Steam coal prices on the Bohai Bay Rim Index fell 2 yuan from week ago to 629 yuan ($100)a tonne this week, marking the sixth consecutive session of falls, which has brought prices down by a total of 11 yuan since mid-December.

SHANGHAI DAILY

–Chinese companies are becoming increasingly confident in venturing overseas to expand trade and cement their prescence on a global scale, a private survey showed. About four in every five international Chinese companies surveyed by HSBC plan to boost overseas expansion, according to the survey.

–China will continue testing and expand the trial run of the new 4G network technology that allows 10-20 times faster internet access, the industry’s top regulator said.

CHINA DAILY (www.chinadaily.com.cn)

–The yuan-denominated business of two major Chinese banks – Industrial and Commercial Bank of China Ltd and Bank of China Ltd – surged in 2012 as global demand for the currency increased.

–China’s first locally manufactured, battery-powered vehicle has been handed over to its buyer in Shanghai.

Fly On The Wall 7:00 Market Snapshot

ANALYST RESEARCH

Upgrades

ASML (ASML) upgraded to Buy from Neutral at BofA/Merrill
Autodesk (ADSK) upgraded to Outperform from Sector Perform at RBC Capital
Bed Bath & Beyond (BBBY) upgraded to Outperform from Perform at Oppenheimer
CSX (CSX) upgraded to Outperform from Sector Perform at RBC Capital
Cubist (CBST) upgraded to Hold from Sell at Cantor
Dillard’s (DDS) upgraded to Outperform from Neutral at Credit Suisse
Emerson (EMR) upgraded to Buy from Hold at Deutsche Bank
Gol Linhas (GOL) upgraded to Buy from Neutral at Goldman
Netflix (NFLX) upgraded to Buy from Neutral at Lazard Capital
Netflix (NFLX) upgraded to Market Perform from Underperform at Raymond James
Netflix (NFLX) upgraded to Neutral from Underperform at Macquarie
Netflix (NFLX) upgraded to Overweight from Neutral at JPMorgan
Ross Stores (ROST) upgraded to Outperform from Neutral at Credit Suisse
Tenet Healthcare (THC) upgraded to Outperform from Market Perform at Raymond James
Torchmark (TMK) upgraded to Buy from Neutral at SunTrust

Downgrades

Albermarle (ALB) downgraded to Hold from Buy at Deutsche Bank
Albermarle (ALB) downgraded to Neutral from Buy at Citigroup
Allegheny Technologies (ATI) downgraded to Neutral from Buy at Goldman
Altera (ALTR) downgraded to Market Perform from Outperform at William Blair
Apple (AAPL) downgraded to Hold from Buy at Jefferies
Apple (AAPL) downgraded to Sector Perform from Outperform at Scotia Capital
Coach (COH) downgraded to Neutral from Buy at ISI Group
Copa Holdings (CPA) downgraded to Neutral from Buy at Goldman
Douglas Dynamics (PLOW) downgraded to Neutral from Outperform at Credit Suisse
Energizer (ENR) downgraded to Market Perform from Outperform at BMO Capital
Magnum Hunter (MHR) downgraded to Hold from Buy at Jefferies
Netflix (NFLX) downgraded to Neutral from Outperform at Credit Suisse
Parkway Properties (PKY) downgraded to Sell from Hold at Cantor
Primerica (PRI) downgraded to Reduce from Neutral at SunTrust
Redwood Trust (RWT) downgraded to Market Perform from Outperform at JMP Securities
Reinsurance Group (RGA) downgraded to Equal Weight from Overweight at Morgan Stanley
Safeway (SWY) downgraded to Underweight from Equal Weight at Barclays
Stillwater Mining (SWC) downgraded to Neutral from Outperform at Credit Suisse
Tiffany (TIF) downgraded to Hold from Buy at Canaccord
Veeco (VECO) downgraded to Neutral from Buy at UBS

Initiations

Atwood Oceanics (ATW) initiated with an Overweight at Barclays
Church & Dwight (CHD) initiated with an Outperform at Credit Suisse
Clorox (CLX) initiated with an Outperform at Credit Suisse
Colgate-Palmolive (CL) initiated with an Outperform at Credit Suisse
Expedia (EXPE) initiated with a Buy at Ascendiant Capital
Kimberly Clark (KMB) initiated with an Underperform at Credit Suisse
Ocean Rig UDW (ORIG) initiated with an Overweight at Barclays
PBF Energy (PBF) initiated with an Overweight at Morgan Stanley
Pacific Drilling (PACD) initiated with an Overweight at Barclays
Procter & Gamble (PG) initiated with a Neutral at Credit Suisse
Splunk (SPLK) initiated with an Outperform at BMO Capital

HOT STOCKS

Apple (AAPL) CEO Cook: Very confident in our product pipeline
Apple said changing approach to guidance
Nokia (NOK) to propose no dividend be paid for 2012
Starwood Property (STWD), Starwood Capital to acquire LNR Property LLC for $1.05B
American Airlines (AAMRQ) signed 12-year capacity purchase agreement with Republic (RJET). Republic signed an agreement with Embraer (ERJ) to purchase 47 new aircraft
Amgen (AMGN) said on track to hit upper end of 2015 revenue guidance
Said no plans to raise additional debt in 2013
SanDisk (SNDK) said positioned for strong profitability in 2013
Netflix (NFLX) said no plans to launch additional international markets in 1H13
Said more and more interested in exclusive content
Symantec (SYMC) reorganized management, will reduce middle-management workforce
United Rentals (URI) sees FY13 increase in rental rates of approximately 4.5%

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Stanley Black & Decker (SWK), Cash America (CSH), Knight Capital (KCG), Jacobs Engineering (JEC), Teradyne (TER), Hill-Rom (HRC), Apple (AAPL), United Rentals (URI), Western Digital (WDC), Sealy (ZZ), SanDisk (SNDK), Netflix (NFLX), Stryker (SYK)

Companies that missed consensus earnings expectations include:
Cabot Microelectronics (CCMP), Logitech (LOGI), Noble Corp. (NE), F.N.B. Corp. (FNB), Energen (EGN), Hexcel (HXL), Greenhill & Co. (GHL)

Companies that matched consensus earnings expectations include:
KeyCorp (KEY), Susquehanna (SUSQ), Celadon Group (CGI), Cubist (CBST)

NEWSPAPERS/WEBSITES

Last year Japan’s trade deficit nearly tripled to a record $78.3B and few expect a drastic improvement anytime soon, leaving Tokyo no choice but to continue with efforts to boost the economy, the Wall Street Journal reports
Citigroup’s (C) U.S. retail and commercial banking has the highest average deposits per branch among top lenders but generates lower profits than the others. The bank is attempting to turn that around, including an upgrade of computer systems, remodel branches and make employees more accountable in what is arguably the biggest internal overhaul at Citibank in decades, the Wall Street Journal reports
Growth in China’s factory sector surged to a two-year high in January as manufacturers received more local and foreign orders in an encouraging sign for the country’s economic rebound. The HSBC flash purchasing managers’ index (PMI) increased to 51.9 in January, the highest since January 2011 and above the 50-point level that shows accelerating growth in the sector from the previous month, Reuters reports
Japanese regulators joined the U.S. in all but ruling out overcharged batteries as the cause of recent fires on the Boeing (BA) 787 Dreamliner, which has been grounded for a week. The FAA said there are still no firm answers as to the cause and no clear timetable yet for returning the plane to flight, Reuters reports
With toxic smog engulfing Beijing and much of the rest of the country for weeks, China is considering tighter vehicle curbs and emissions standards like Europe’s. That could benefit GM (GM), Volkswagen (VLKAY) and Hyundai Motor in a market where sales are forecast to pass 20M units this year, Bloomberg reports
Building supply stocks such as USG (USG) in which Warren Buffett (BRK.A) holds a 16% stake, and Eagle Materials (EXP) that more than doubled last year look to rise further as the U.S. housing market extends its recovery, Bloomberg reports

SYNDICATE
ARIAD (ARIA) files to sell common stock
American Realty (ARCP) announces public offering of 1.5M shares of common stock
Buckeye Partners (BPL) files to sell 6M common units
KB Home (KBH) 5.5M share Secondary priced at $18.25

Your rating: None

Military Contracting: Our New Era of Corporate Mercenaries

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Private military contracting has ballooned into an industry worth more than $100bn a year. (Photograph: Goran Tomasevic/Reuters)In early 1995, Sierra Leone was on the brink of collapse. A violent civil war had ravaged the country, leaving thousands dead and countless others wounded. The insurgent rebels, infamous for recruiting child soldiers, were just weeks from the beleaguered capital, Freetown, and appeared unassailable.

Several months later, however, the tide had turned: the government’s authority was strengthened, rebel forces were repelled, and control over the country’s major economic assets was restored. Executive Outcomes, a private military contractor armed with helicopters and state of the art artillery, helped change the course of the war.

Nearly every tool necessary to wage war can now be purchased: combat support, including the ability to conduct large-scale operations and surgical strikes; operational support, like training and intelligence gathering; and general support, like transportation services and paramedical assistance. The demand for these services, in turn, has ballooned: the gross revenue for the private military contractor industry is now in excess of $100bn a year.

The privatization of conflict is no longer a trend. It’s the norm.

The United States relied so heavily on contractors during the recent Iraq war that no one knows with certainty how many were on the ground. In late 2010, the United Arab Emirates, fearful that the Arab uprisings might spread to the Gulf, paid Erik Prince, the founder of Blackwater Worldwide, $529m to create an elite force to safeguard the emirate. And today, Russia is openly considering forming a cadre of private military contractors to further its interests abroad.

Yet, the laws that govern this industry tell a different story. Instead of a transnational system with meaningful collaboration, we have a patchwork of state laws that allow companies to forum-shop and circumvent regulations. Contractors can likewise relocate, as they typically rent the equipment necessary to complete their contracts; their primary source of capital is human, not physical.

In addition to closing loopholes, states must monitor contractors, and prosecute them when they commit crimes. To this day, not a single contractor has been successfully prosecuted for its role in the Abu Ghraib prison atrocities or the Nisour Square massacre, in which 17 Iraqi civilians were killed.

Contractors claim that their services are market- and self-regulated. They contend that wanton violence would stop governments from seeking their assistance. Yet, the theatre of war often obscures their activities.

In its final report to the US Congress, the Commission on Wartime Contracting found that the US government lost more than $30bn to contractor waste and fraud in Afghanistan and Iraq. Also, corporations can rename and rebrand, thereby mitigating reputational harm. Consider Blackwater USA, which changed its name to Xe Services LLC, and then to Academi — all in the last four years.

The UN working group on the use of mercenaries has suggested that certain military functions, like combat services and interrogation, not be outsourced to private contractors. Its guidelines should be followed. Outsourcing foreign policy goals undermines democratic oversight because contractor activities, including casualties, typically escape public scrutiny. It can also allow states to evade legislative oversight.

The greatest check against war is the horror of war itself. Yet, as the physical distance between warring states grows, so does the temptation to loosen our moral compass. Violence that lacks immediacy is easier to ignore. Permitting third parties to wage war for profit risks a world in which war is not the last resort but an economic transaction in which the victims are faceless and nameless.

And so, we return to Sierra Leone. Although the intervention by Executive Outcomes is sometimes touted as illustrating the viability of military contractors, history suggests otherwise. The contractor was later accused of interfering in domestic politics to pursue financial gain, and an associated firm received payment through diamond mine concessions, which compromised the country’s economic future.

Moreover, violence resumed after Executive Outcomes left Sierra Leone. It became clear that the government had over-relied on the contractor and undercut its own institutions.

The fog of war is hazy enough. We don’t need additional, unregulated cloud cover.

© 2012 Guardian News and Media Limited

I Hate to Bother You: Is Justice Right Side Up?

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I Hate to Bother You: Is Justice Right Side Up?

Is justice right side up?

Has world justice been frozen in an upside-down position?

The shoe-thrower of Iraq, the man who hurled his shoes at Bush, was condemned to three years in prison. Doesn’t he deserve, instead, a medal?

Who is the terrorist? The hurler of shoes or their recipient? Is not the real terrorist the serial killer who, lying, fabricated the Iraq war, massacred a multitude, and legalized and ordered torture?

Who are the guilty ones—the people of Atenco, in Mexico, the indigenous Mapuches of Chile, the Kekchies of Guatemala, the landless peasants of Brazil–all being accused of the crime of terrorism for defending their right to their own land? If the earth is sacred, even if the law does not say so, aren’t its defenders sacred too?

According to Foreign Policy Magazine, Somalia is the most dangerous place in the world. But who are the pirates? The starving people who attack ships or the speculators of Wall Street who spent years attacking the world and who are now rewarded with many millions of dollars for their pains?

Why does the world reward its ransackers?

Why is justice a one-eyed blind woman? Wal-Mart, the most powerful corporation on earth, bans trade unions. McDonald’s, too. Why do these corporations violate, with criminal impunity, international law? Is it because in this contemporary world of ours, work is valued as lower than trash and workers’ rights are valued even less?

Who are the righteous and who are the villains? If international justice really exists, why are the powerful never judged? The masterminds of the worst butcheries are never sent to prison. Is it because it is these butchers themselves who hold the prison keys?

What makes the five nations with veto power in the United Nations inviolable? Is it of a divine origin, that veto power of theirs? Can you trust those who profit from war to guard the peace?

Is it fair that world peace is in the hands of the very five nations who are also the world’s main producers of weapons? Without implying any disrespect to the drug runners, couldn’t we refer to this arrangement as yet another example of organized crime?

Those who clamor, everywhere, for the death penalty are strangely silent about the owners of the world. Even worse, these clamorers forever complain about knife-wielding murderers, yet say nothing about missile-wielding arch-murderers.

And one asks oneself: Given that these self-righteous world owners are so enamored of killing, why pray don’t they try to aim their murderous proclivities at social injustice? Is it a just a world when, every minute, three million dollars are wasted on the military, while at the same time fifteen children perish from hunger or curable disease? Against whom is the so-called international community armed to the teeth? Against poverty or against the poor?

Why don’t the champions of capital punishment direct their ire at the values of the consumer society, values which pose a daily threat to public safety? Or doesn’t, perhaps, the constant bombardment of advertising constitute an invitation to crime? Doesn’t that bombardment numb millions and millions of unemployed or poorly paid youth, endlessly teaching them the lie that “to be = to have,” that life derives its meaning from ownership of such things as cars or brand name shoes? Own, own, they keep saying, implying that he who has nothing is, himself, nothing.

Why isn’t the death penalty applied to death itself? The world is organized in the service of death. Isn’t it true that the military industrial complex manufactures death and devours the greater part of our resources as well as a good part of our energies? Yet the owners of the world only condemn violence when it is exercised by others. To extraterrestrials, if they existed, such monopoly of violence would appear inexplicable. It likewise appears insupportable to earth dwellers who, against all the available evidence, hope for survival: we humans are the only animals who specialize in mutual extermination, and who have developed a technology of destruction that is annihilating, coincidentally, our planet and all its inhabitants.

This technology sustains itself on fear. It is the fear of enemies that justifies the squandering of resources by the military and police. And speaking about implementing the death penalty, why don’t we pass a death sentence on fear itself? Would it not behoove us to end this universal dictatorship of the professional scaremongers? The sowers of panic condemn us to loneliness, keeping solidarity outside our reach: falsely teaching us that we live in a dog-eat-dog world, that he who can must crush his fellows, that danger is lurking behind every neighbor. Watch out, they keep saying, be careful, this neighbor will steal from you, that other one will rape you, that baby carriage hides a Muslim bomb, and that woman who is watching you—that innocent-looking neighbor of yours–will surely infect you with swine flu.

In this upside-down world, they are making us afraid of even the most elementary acts of justice and common sense. When President Evo Morales started to re-build Bolivia, so that his country with its indigenous majority will no longer feel shame facing a mirror, his actions provoked panic. Morales’ challenge was indeed catastrophic from the traditional standpoint of the racist order, whose beneficiaries felt that theirs was the only possible option for Bolivia. It was Evo, they felt, who ushered in chaos and violence, and this alleged crime justified efforts to blow up national unity and break Bolivia into pieces. And when President Correa of Ecuador refused to pay the illegitimate debts of his country, the news caused terror in the financial world and Ecuador was threatened with dire punishment, for daring to set such a bad example. If the military dictatorships and roguish politicians have always been pampered by international banks, have we not already conditioned ourselves to accept it as our inevitable fate that the people must pay for the club that hits them and for the greed that plunders them?

But, have common sense and justice always been divorced from each other?

Were not common sense and justice meant to walk hand in hand, intimately linked?

Aren’t common sense, and also justice, in accord with the feminist slogan which states that if we, men, had to go through pregnancy, abortion would have been free. Why not legalize the right to have an abortion? Is it because abortion will then cease being the sole privilege of the women who can afford it and of the physicians who can charge for it?

The same thing is observed with another scandalous case of denial of justice and common sense: why aren’t drugs legal? Is this not, like abortion, a public health issue? And the very same country that counts in its population more drug addicts than any other country in the world, what moral authority does it have to condemn its drug suppliers? And why don’t the mass media, in their dedication to the war against the scourge of drugs, ever divulge that it is Afghanistan which single-handedly satisfies just about all the heroin consumed in the world? Who rules Afghanistan? Is it not militarily occupied by a messianic country which conferred upon itself the mission of saving us all?

Why aren’t drugs legalized once and for all? Is it because they provide the best pretext for military invasions, in addition to providing the juiciest profits to the large banks who, in the darkness of night, serve as money-laundering centers?

Nowadays the world is sad because fewer vehicles are sold. One of the consequences of the global crisis is a decline of the otherwise prosperous car industry. Had we some shred of common sense, a mere fragment of a sense of justice, would we not celebrate this good news?

Could anyone deny that a decline in the number of automobiles is good for nature, seeing that she will end up with a bit less poison in her veins? Could anyone deny the value of this decline in car numbers to pedestrians, seeing that fewer of them will die?

Here’s how Lewis Carroll’s queen explained to Alice how justice is dispensed in a looking-glass world:

“There’s the King’s Messenger. He’s in prison now, being punished: and the trial doesn’t begin until next Wednesday: and of course the crime comes last of all.”

In El Salvador, Archbishop Oscar Arnulfo Romero found that justice, like a snake, only bites barefoot people. He died of gunshot wounds, for proclaiming that in his country the dispossessed were condemned from the very start, on the day of their birth.

Couldn’t the outcome of the recent elections in El Salvador be viewed, in some ways, as a homage to Archbishop Romero and to the thousands who, like him, died fighting for right-side-up justice in this reign of injustice?

At times the narratives of History end badly, but she, History itself, never ends. When she says goodbye, she only says: I’ll be back.

Eduardo Galeano is the sage of the Americas. Galeano’s classics include: Open Veins of Latin America and Genesis.

Obama to the Left? Media Avoid Reality Behind Inaugural Rhetoric

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If there was one consistent media message about the Obama inauguration ceremony, it was the idea that he was announcing a clear shift to the left. But coverage failed to provide much background on the president’s actual policies, which would have challenged that impression.

“The president called for an ambitious liberal agenda in his inaugural address yesterday,” said CBS Evening News anchor Scott Pelley (1/22/13).  On the PBS NewsHour (1/22/13), Gwen Ifill said, “President Obama’s forceful new focus on progressive ideals echoed across the nation on the day after the inauguration.” The headline across the front page of the New York Times (1/22/13) read, “Obama Offers Liberal Vision.”

The supposed move to the left unnerved some pundits (FAIR Blog, 1/22/13); corporate media generally prefer Democratic presidents when they’re talking about compromising with their Republican opponents.

Much of the attention to this progressive shift came due to Obama’s comments about climate change:

We will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations. Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires, and crippling drought, and more powerful storms. The path towards sustainable energy sources will be long and sometimes difficult. But America cannot resist this transition; we must lead it.

The inclusion of climate change was treated as a particularly big deal, given that inaugural addresses seldom dwell on policy. “Speech Gives Climate Goals Center Stage” read one headline in the next day’s New York Times (1/22/13). But that story, and much of the media commentary on his climate comments, failed to even mention the Keystone XL pipeline, currently under State Department review.

The carbon-intensive project, bringing tar sands oil from Canada to the Gulf Coast, would be a major source of heat-trapping greenhouse gases (NRDC, 1/17/13). (The Alberta tar sands contain as much as 240 gigatons of carbon, or almost half the total it’s estimated humans can add to the atmosphere without dangerously raising global temperatures–Rolling Stone, 7/19/12.)

It is hard to fathom how meaningful action on climate change would be possible if Keystone were approved, but the White House has not spoken out in opposition to the pipeline (Nation.com, 1/22/13). Leaving out Obama’s most important upcoming climate policy decision when covering his climate agenda is a media failure.

Part of the inaugural address discussed immigration policy as well, when Obama said this:

Our journey is not complete until we find a better way to welcome the striving, hopeful immigrants who still see America as a land of opportunity; until bright young students and engineers are enlisted in our workforce rather than expelled from our country.

On the PBS NewsHour (1/22/13), host Gwen Ifill introduced that soundbite by saying that Obama “also raised immigration reform, an issue that went unaddressed for much of his first term.” And the New York Times (1/22/13) reported that for Latinos the inauguration was “an occasion to savor newfound political clout,” though it was tempered by the “sense that Obama had better make good on the promises he failed to keep during his first term, including an immigration overhaul.”

That’s one way to look at it. But the reality is that Obama did have an immigration policy in his first term, and it was an extraordinarily punitive one. That policy record was mostly missing from discussions. An exception came from NPR correspondent Ted Robbins (1/21/13):

He and his administration have deported more than a million and a half people, which is a record, and he spent $18 billion, according to the Migration Policy Institute last year, on enforcement. And implemented Secure Communities, which is a local law enforcement sharing data of people they arrest with federal immigration authority.

And CNN‘s John King (1/21/13) told viewers: “It was the Obama administration that angered many Latinos, and especially Latino interest groups, by increasing the number of deportations.”

Since the significance of Obama discussing policy is that the policies themselves affect the world and people’s lives, reporters covering the speech would have served the public better if they had clarified how the president’s rhetoric matched up with his record.

© 2012 Fairness & Accuracy In Reporting (FAIR)

Apple Earnings Shock Offset By Good Cop/Bad Cop Macro Data

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While the main topic of conversation overnight was the Apple implosion after earnings (which was mercifully spared inbound calls from repo desk margin clerks who had all gone home by the time the stock hit $460), there was some macro data to muddle up the picture, which, like everything else in this baffle with BS new normal came in “good/bad cop” pairs.

In early trading, all eyes were focused on Japan, whose trade and especially exports imploded when the country posted a record trade gap of 6.93 trillion yen ($78.27 billion) in 2012 and the seventh consecutive monthly drop in exports which showed that improved sentiment has yet to translate into hard economic data. Finance ministry data on Thursday showed that exports fell 5.8 percent in the year to December, more than economists’ consensus forecast of a 4.2 percent drop. Trade with China was hit particularly hard following the ongoing island fiasco, which means that all the ongoing Yen destruction has largely been for nothing as organic growth markets simply shut off Japan. This ugly news was marginally offset by a tiny beat in the HSBC China manufacturing PMI which came slightly above consensus at 51.9 vs exp. 51.7, the highest print in 24 months, but as with everything else coming out of China one really shouldn’t believe this or any other number in a country that will not allow even one corporate default to prevent the credit-driven illusion from popping.

Moving to Europe it too was a good/bad news story: shortly before 3 am the BIS FX team was summoned to defend the 1.33 support after French manufacturing PMI plummeted from 44.6 to 42.7, on expectations of a rise to 45.1 and the realization that the recession has fully engulfed Europe’s core. However, this disturbing print was promptly offset by German PMI which in turn rose from 46.0 to 48.8, on expectations of a 46.8 print. Whether this modest bounce will be enough to push Germany out of what is now the first leg of a recession remains to be seen.

Judging by the fact that leading German bank announced plans to fire 4,000-6,000 earlier, we doubt there is much hope for a quick rebound in Germany.

Elsewhere, Spain reported its last depressionary data point, which was the Q4 unemployment, and which as expected rose to above the expected 26%, or a record 26.02% to be precise in the last quarter, and well above the 25.02% in Q3. Finally, completing the sad European picture were Italian November retail sales which too were worse than expected at -0.4%, on expectations of a -0.1% print, and the prior was revised further down from -1% to -1.3%.

Finally, in bad news for socialists everywhere, France has fully abandoned plans for its 75% tax rate, Europe1 reported.

More on the overnight events from DB’s Jim Reid:

China’s PMI and Apple’s results are the two competing stories overnight with the latter weighing on sentiment in the Asian session. Indeed besides Japan (+1.2%), major bourses in Hong Kong, China and South Korea are down -0.1%, -0.3% and -0.9% respectively. Before we take a closer look at Apple’s disappointing results, the HSBC manufacturing PMI in China came in slightly above consensus (51.9 v 51.7) this morning. This was the highest print in 24 months with the series having gradually recovered from the lows of 47.6 in August of last year. Away from China, other Asian data flow overnight has generally been on the soft side. Korea’s Q4 GDP (+1.5% yoy v +1.8% yoy expected) fell short of market consensus while Japan posted a wider-thanexpected trade deficit (JPY641.5B v JPY-522.8B) in December. For Korea this is the slowest quarterly yoy growth since September 2009 and the Japanese trade deficit in 2012 is the widest on record on an annual basis.

Turning to Apple, the company managed to beat EPS consensus ($13.81 v $13.53) but revenue fell short of market expectations ($54.5bn v $54.9bn). More importantly forward looking revenue and gross margin guidance also came in light relative to street estimates. In terms of product performance in the latest quarter, our US colleagues noted that iPhone sales were largely in line but iPad sales were lighter than expected and Macs sales sharply disappointed. Apple’s shares plunged around 10% in after hours trading and have now lost a third of their value from the peak in September last year. Apple’s after market move is also dampening the performance of the S&P 500 Futures (-0.4%) and NASDAQ 100 Futures (-1.5%) overnight. It will be interesting to see how US markets trade throughout today after what proved to be a positive finish to yesterday’s trading session.

Indeed the S&P 500 edged higher (+0.15%) for its 6th consecutive session yesterday as sentiment was boosted by news that the US House of Representative has voted (285 v 144) to suspend the debt ceiling for three months. The earnings scorecard before the closing bell was also generally positive with 65% and 81% of companies that reported yesterday coming ahead of analysts’ EPS and revenue expectations, respectively. IBM’s better results helped drive the Dow (+0.49%) up to just less than 1% away from its all time highs. For the record the S&P 500 is also just 5pts away from the symbolic 1,500 mark.

On the fixed income side, its quite interesting to note that the Dell-driven LBO theme is pushing the skew on the CDX IG index to negative territory. The index edged a tad tighter yesterday and now trades about 5bps ‘rich’ to intrinsic value as some single names are seeing demand for protection on LBO concerns. Overall January continues to be a good month for risk, continuing the theme from the back end of 2012. However the growth outlook isn’t necessarily much better than where we were 3 months ago. The IMF published its updated global growth forecasts yesterday and now expects global GDP to grow by 3.5% this year. This is a touch lower than the 3.6% forecast they had in October last year. This is still ok but we’ll need some upward momentum in the data to reach this level still.

In terms of the day ahead, flash PMIs from France, Germany and the Eurozone will be the key European data print today. As we said in our outlook, these readings need to get into the low 50s to justify current levels of markets rather than just above the mid-40s they generally are in Europe at the moment.

They have a few months grace to get there without upsetting the party but these prints
along the way will be informative. Elsewhere Merkel and Cameron will both speak at day-2
of the Davos conference today. On the other side of the pond we also get the preliminary
Markit PMI in the US as well as the usual weekly jobless claims. 3M and Microsoft are
some of the bigger names reporting today.

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Israel’s Settlements Flout International Law

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In mid-December, Israeli officials approved plans for the construction of more than 2,600 new homes to be built on Givat Hamatos, a hill on the outskirts of Israeli-occupied East Jerusalem. This settlement would be the first major new Jewish neighborhood in Jerusalem outside of Israel’s internationally recognized borders since 1997, effectively completing the encirclement of Arab East Jerusalem by cutting it off from the rest of the West Bank.

Like a number of other new settlements announced by Israel’s right-wing government, this latest initiative appears designed to divide up the land in the occupied territory in such a way as to make the establishment of a contiguous Palestinian state impossible.

In face of near-universal international condemnation for this latest Israeli provocation, however, the United States rushed to Israel’s defense.

All of the Israeli settlements outside of Israel’s internationally recognized borders are illegal. Article 49 of the Fourth Geneva Convention — to which both Israel and the United States are signatories — prohibits any occupying power from transferring “parts of its own civilian population into the territory it occupies.” The United Nations, with such measures as Security Council Resolutions 446, 452, 465 and 471, has repeatedly recognized that Israel is in violation of this critical international treaty.

In addition, a landmark 2004 decision by the International Court of Justice also confirmed the illegality of the settlements.

On Dec. 19, however, the Obama administration blocked a U.N. Security Council vote on a resolution condemning Israel’s announcement of the new settlement. The U.S. then blocked an effort for a joint statement by the Security Council president. In response, all 14 other members of the Security Council issued individual statements condemning the illegal Israeli actions.

Obama’s efforts to undermine international law in regard to Israeli colonization are not new. In February 2011, a nearly unprecedented majority of U.N. members co-sponsored a Security Council resolution that reaffirmed previous Security Council resolutions acknowledging that Israeli settlements on Palestinian lands occupied since the June 1967 war were illegal and constituted a major obstacle to peace. Unlike these previous resolutions, however, which called on Israel to withdraw from already existing settlements, this resolution simply insisted that Israel cease additional settlement activity in Palestinian areas.

Despite the moderate wording, however, the United States vetoed the resolution. All 14 of the other members of the Security Council voted in favor, situating the United States as an extreme outlier in the international community and placing President Barack Obama to the right of the conservative governments of Great Britain and France.

Given that the 2004 ruling by the International Court of Justice enjoined the United States and other signatories to “ensure compliance by Israel with international humanitarian law,” the U.S. veto of a U.N. Security Council resolution attempting to encourage compliance indicates that Obama is willing to have the United States violate the decision by the World Court as well.

The official State Department position, in effect for nearly 33 years and never formally repealed, states categorically, “While Israel may undertake, in the occupied territories, actions necessary to meet its military needs and to provide for orderly government during the occupation, for the reasons indicated above the establishment of the civilian settlements in those territories is inconsistent with international law.” Obama, in vetoing this resolution, demonstrated his willingness to undermine even his own State Department.

Refusing to recognize the illegality of Israeli settlements at the United Nations was not always the position of the U.S. president. The Nixon, Ford and Carter administrations were quite willing to do so when Israel’s colonization drive began in the 1970s. However, despite his distinguished legal background, Obama has demonstrated — on this issue, at least — that he has even less respect for the law than Richard Nixon had.

As late as the presidency of George H.W. Bush, the United States tried to pressure Israel to halt settlement expansion. However, under the Clinton administration — with the backing of both parties in Congress — the United States succeeded in blocking efforts by Israeli peace activists and the international community to freeze settlements, which at that time were only half as large as they are now. The United States even used taxpayer dollars to subsidize the settlements’ expansion. These policies contributed directly to the collapse of the peace process in 2000 and the rise of extremist Palestinian groups like Hamas.

In 2001, the U.S. Mitchell Report called on Israel to “freeze all settlement activity, including the ‘natural growth’ of existing settlements,” emphasizing that without such a freeze, “a cessation of Palestinian-Israeli violence will be particularly hard to sustain.” Neither the Bush administration nor Congress pressured Israel to abide by this recommendation, however.

Similarly, when the George W. Bush administration — along with Russia, the European Union and the United Nations — put together a three-part “road map” for Israeli-Palestinian peace two years later, the first phase included a freeze on the expansion of Israeli settlements in the occupied territories, “including natural growth of settlements.” However, while the United States pushed the Palestinian Authority hard — and largely successfully — to live up to its obligations under the road map, both the Bush and Obama administrations have refused to go beyond mildly worded expressions of concern about Israel’s settlement policy.

It is no secret where U.S. acquiescence to Israel’s settlement policy will lead. As Israeli Prime Minister Ariel Sharon once told Secretary of State Colin Powell, “We learn a lot from you Americans. We saw how you moved West using this method.”

© 2012 National Catholic Reporter

A Simple Solution to the Debt Ceiling Problem

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A great deal has been written recently about the problem of the ceiling on US government debt, which is a threat to the proper functioning of the US government.

Rather than offer more hand-wringing over what austerity measures should, or shouldn’t be, implemented, or what taxes should be raised–I propose a simple, two-step solution that does not require trillion dollar coins or constitutional challenges. 

Step 1: Redefine the definition of government debt to include only Treasury securities that are an actual cost to the government.

This is so logical that it may come as a surprise to some that this is not already the case. The two major no-cost exceptions are the Federal Reserve’s holdings (about $1.6 trillion) and intra-governmental holdings (about $4.8 trillion). The Fed’s profits each year (aside from a minor 6% dividend to its private shareholders) are returned to the Treasury each year, so essentially the government gets back all the interest it pays on the Fed holdings. This proposed reform is also logical from the point of view that the Fed holdings play no role whatsoever in the real economy. They are in essence nothing more than an internal accounting entry between the Fed and the Treasury Department. The intra-governmental holdings are primarily social security related, are in fact netted out in the government’s annual accounts, and are in any case unnecessary, as future social security obligations can always be met with 100% certainty with a non-convertible US dollar. Treatment of the intra-governmental holdings is not, however, critical to my proposal. The important reform is the removal of the Fed holdings from the definition of government debt.

Step 2: The Fed can now, if it wishes, redeem all government debt by crediting the accounts of holders.

It can do this in principle with a few computer keystrokes. To use a private bank analogy, the Fed simply replaces what is essentially a time deposit (Treasury securities) with a demand deposit (bank reserves). The net effect on the Fed’s balance sheet is to add the Treasury securities to the asset side, and a corresponding addition to bank reserves of the non-government sector on the liability side. At the same time, the Fed must raise the interest rate it pays on these reserves (currently 0.25%) to the targeted Fed funds rate, which is slightly higher. This is necessary to replace the previous procedure of selling Treasury securities to keep interest rates at the targeted level.

The procedure is non-inflationary. No additional money and no new financial assets are added to the economy. It is a simple swap operation: one asset traded for another. Interest-paying government debt no longer exists. The government can continue to spend into the economy as it currently does according to Congressional legislation. Note that the net cost to the government of the bank reserves is less than the current cost of treasury securities held by the public, as some higher yielding bonds disappear, so there would even be some cost savings. Note also that without publically owned Treasury bonds, it will not be possible for the Fed to influence the yield curve as it does today through its open market operations. In fact there will be no yield curve if there are no government securities outstanding with the public.

However, in practice, the Fed need not, and would not, redeem all the Treasury securities, but enough to keep the public holdings below the debt ceiling. This is clearly what would happen in practice, as it gives the Fed maximum flexibility in influencing interest rates along the whole spectrum, which is, after all, its most important function. There need not be any change in procedure from today. In fact, the removal of Fed holdings and intra-governmental holdings alone (Step 1) is enough to reduce interest bearing holdings to about 60 percent of the current debt ceiling ($16.4 trillion).

Assuming no further reforms, the Treasury would, however, have to continue the current Wizard of Oz procedure of issuing new securities to the private banks, only to be instantaneously bought by the Fed, in order to get the liquidity it needs to spend. How much simpler and more transparent everything would be if the Treasury simply bought the Fed from its private bank owners and arranged for access to an unlimited interest-free credit line that allowed it to pay its bills as requested by Congress without meaningless Wizard of Oz operations and without an unnecessary limit on spending imposed by the self-same Congress.

With the proposed solution, deficit spending simply adds to the bank sector’s reserves at the Fed without creating additional government debt–unless, of course, you define bank reserves–which are a net cost to the government–as part of government debt. (Now there is an interesting idea for further contemplation!)

The Case Against Kerry

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Transcript

PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Baltimore.

With all the attention on the nomination by President Obama of Chuck Hagel as secretary of defense, there hasn’t been quite as much discussion about his nomination of John Kerry for secretary of state. I guess that’s partly because he seems rather beloved by the Republicans and is likely to get passed without much issue. But there are issues, according to our next guest, Stephen Zunes.He now joins us where he’s a professor of politics. And he is also chair of the Middle Eastern studies at the University of San Francisco. He’s also a columnist and senior analyst of Foreign Policy in Focus. I should say he’s actually joining us now from North Carolina, where he’s traveling. Thanks for joining us, Stephen.STEPHEN ZUNES, CHAIR, MIDDLE EASTERN STUDIES, UNIVERSITY OF SAN FRANCISCO: My pleasure.JAY: So everyone’s–generally in the mainstream media seems to like this appointment of John Kerry. But you don’t. Why?ZUNES: John Kerry, though he–his earlier Senate career included some bold challenges to U.S. foreign policy, particularly regarding Central America, the nuclear arms race, and his support for various dictators around the world, moved sharply to the right in the past decade or so, including support for the invasion of Iraq, support for the more hardline elements in Israel, and a number of policy statements and initiatives which seem to indicate a pretty serious disdain to basic principles of human rights, international law. In addition, a series of statements ranging from his false claims about Iraq’s military potential during the waning days of Saddam Hussein’s reign to his attacks on Amnesty International and other reputable human rights organizations for reporting violations of human rights by U.S. allies have also raised questions about his credibility.JAY: So just to track his history a little bit, I mean, he made a name for himself ’cause he came back as this decorated war vet and opposed to the war in Vietnam. And if you listen to the rhetoric at that time, he sounds rather progressive in his foreign policy position.~~~JOHN KERRY, VIETNAM WAR VETERAN: We could come back to this country and we could be quiet, we could hold our silence, we could not tell what went on in Vietnam. But we feel because of what threatens this country, the fact that the crimes threaten it, not red, not redcoats, but the crimes which we’re committing are what threaten it. And we have to speak out.~~~JAY: So give us a bit of the arc of what happened to that John Kerry.ZUNES: Well, it’s hard to say. I mean, some people say he did it for political expediency because he had long desired to run for president. Of course, he did in 2004, receiving the Democratic nomination and losing narrowly to President Bush. But in the post-9/11 era, he tended to take a pretty hardline position. He went around claiming that the United States has a right to invade other countries without international support. He attacked the UN secretary-general, he attacked fellow Democrats, he attacked the Spanish prime minister and others who raised questions about this kind of U.S. unilateralism, his claims, for example, that Iraq–that everybody agreed that Iraq had advanced nuclear weapons program. And, in fact, there were very well publicized, even at that time, divisions among national security analysts, even within the government, about those facts. So he claimed that they had biological and chemical weapons even more advanced than they did prior to the Gulf War of 1991 and the subsequent disarmament that was imposed by the international community. These things kind of raised serious, you know, questions [unintel.] the extent he would go to supporting a U.S. intervention in various parts of the world.JAY: And didn’t he go so far as to say that if he–knowing what he knows now, he’d still vote for it?ZUNES: Yeah. This is the scary part, actually. When he was running for president in 2004, unlike, say, Chuck Hagel and some other people who immediately regretted their vote for the war and backtracked, Kerry doubled down. He said that even if he knew that Iraq did not have these chemical and biological weapons and nuclear weapons programs, he would have supported the invasion anyway, because they might have the potential [inaud.] some day and Iraq was a repressive dictatorship.But by that criteria, repressive regimes with the potential to make nonconventional weapons, there are at least 30, 40 countries around the world that meet that criteria. And he was essentially saying, we have the right to invade any one of them.JAY: Now, a lot of people breathed a sigh of relief when Susan Rice didn’t get nominated, because she is known as a, quote, humanitarian imperialist–in other words, she’s known to be very pro-interventionist, using humanitarian framing for the intervention. But is Kerry any different than that?ZUNES: No, not really. And indeed he’s been quite supportive of intervention that doesn’t even remotely resemble humanitarian initiatives. He’s been a big supporter, for example, when–in backing the Bush administration’s defense of Israel’s wars on Lebanon and Gaza. He basically has taken this position that [unintel.] his attacks against Howard Dean for saying that the United States should work more multilaterally with other countries, saying, oh, that’s just an excuse for doing nothing, he would surrender our right of self-defense, and the like. He attacked Spanish Prime Minister, you know, Zapatero as giving in to terrorism when Zapatero said, we are going to withdraw Spanish troops from Iraq because the Bush administration refuses to allow the UN to play a stronger role. I mean, again, this guy is pretty hardcore. In many ways, he has embraced some of the very basic assumptions we normally associate with the right-wing Republican neoconservatives.JAY: So this tells us a lot about President Obama’s foreign policy outlook, I think, because on the one hand, the reason he always said he opposed the Iraq War is ’cause it was a stupid war, not because he’s against those kinds of interventions. He just saw that that particular war would actually weaken America’s ability to project power. And those are virtually his words. So you see the appointment of Chuck Hagel–he thinks a war with Iran would be stupid, and he wants someone that could help keep the lid on that. On the other hand, he’s not against the use of armed force to project power, and there he has Kerry. So it isn’t actually contradictory, these two appointments.ZUNES: No. But in certain ways, though, it does–I do see it as something of a betrayal by Obama, in that when he was running for president, he said he promised not just to end the Iraq War, but to end the mindset which led to the Iraq War in the first place. And he was smart enough–or whether it be for, you know, pragmatic reasons or anything else, recognized that the invasion of Iraq and occupation would be a disaster. And, you know, he should be given at least some credit for that understanding. But at the same time, almost every major appointment he has made dealing with foreign policy and national security–Gates in defense; Hillary Clinton, secretary of state; Dennis Blair at DNI; Napolitano at Homeland Security; Biden as vice president; Emanuel as chief of staff–and all these people were among the right-wing minority of Democrats that supported the Iraq War. Remember, the majority of Democrats on Capitol Hill voted against the authorization. [unintel.] again, virtually every single one of Obama’s appointments to these top positions have been among that right-wing minority.JAY: I interviewed Susan Rice during the New Hampshire primary in 2008, and I asked her this question directly, and she was essentially his spokesperson on foreign policy during the election campaign, and I asked her if–what is this new mindset? I said, if you’re going to have a new mindset the way he’s promised, doesn’t that mean you have to question the whole underlying assumption that there has to be–the United States has to be a global military power? I said, you know, what do you think about closing down most or all of the foreign military bases? What is the difference in your strategy in Afghanistan? Is it going to be just troop-based or not? And I asked her essentially that question, and she essentially–not essentially–she took off her microphone and walked out of the interview. She said, I don’t have to do this.ZUNES: Really? It’s interesting. I think in many ways that these appointments, including Kerry, are exemplary of this idea that somehow the United States is above the law and its allies are above the law. In fact, I remember when the International Court of Justice in a unanimous (save for the U.S. judge) opinion that said that Israel, like all other countries, had to abide by the Fourth Geneva Convention and other principles of international humanitarian law in the occupied territories. In 2004, John Kerry sharply criticized the International Court of Justice for its unanimous ruling (save for the U.S. judge) that said that Israel, like all countries, is bound by provisions of the Fourth Geneva Convention, specifically that while they can build a separation barrier on their internationally recognized borders, they cannot build this separation wall deep inside occupied territory in this serpentine fashion as part of a land grab to incorporate all these settlements. Well, John Kerry denounced the World Court as being anti-Israel, as not supporting Israel’s right to self-defense, and even said that the World Court should have no jurisdiction whatsoever, that it should simply be a matter of the Israeli courts to decide, and the U.S. should support whatever the Israeli courts say. But when you think about the implications of this, he’s basically saying that if a country invades and occupies another country, any legal question regarding international humanitarian law or anything else should be determined by the courts of the occupying power. In other words, that combined with his rationalization for the invasion of Iraq, seems to indicate that a wholesale rejection of the United Nations system, 20th-century international law, and embrace a 19th-century notion of right of conquest.JAY: Alright. Well, I guess this is just the beginning of discussions about John Kerry, ’cause it seems rather sure he’s going to be nominated. Thanks for joining us, Stephen.ZUNES: My pleasure.JAY: And thank you for joining us on The Real News Network.

End

DISCLAIMER: Please note that transcripts for The Real News Network are typed from a recording of the program. TRNN cannot guarantee their complete accuracy.


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David Cameron Accused Of Misleading Claim That UK’s Debt Is Falling

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David Cameron has been accused of misleading voters after claiming the government was “paying down Britain’s debt”.

During a Conservative Party political broadcast on Wednesday evening, the prime minister said voters wanted to know the “facts” about the country’s finances.

“So though this government has had to make some difficult decisions, we are making progress. We are paying down Britain’s debts,” he said.

However Labour are pointing to figures from the Office for National Statistics published this week which showed that the national debt has risen from £811.3 billion (55.3% GDP) in the second quarter of 2010, to £1,111.4 billion at the end of December 2012 (70.7% GDP).

Rachel Reeves, Labour’s shadow chief secretary to the Treasury, has today written to Andrew Dilnot, the chair of the UK Statistics Authority to ask for clarity.

“This suggests that the Conservative Party may be attempting to deliberately mislead the public about these statistics and the Government’s record,” she said.

On Thursday morning the prime minister’s official spokesperson acknowledged that debt as a percentage of GDP “has risen” since the election, adding that the deficit had been reduced “by a quarter”.

“The government is taking measures to bring debt under control,” he said. “The point the prime minister is making is the prime minister’s government is taking tough decisions to deal with the economic crisis the government inherited.”

“The government’s policy is for the debt as a percentage of GDP to be falling in 2016/17.”

However the spokesperson denied that Cameron had misspoken in his broadcast. Asked if the prime minister understood the difference between the debt and the deficit, he said: “Yes, he does”.

The UK’s national debt is the total amount of money the country owes historically. The budget deficit, in contrast, is the amount added to that debt each year: the difference between what the government spends and what it receives in revenue.

US military contractor report $2bn loss

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Major US military contractor General Dynamics report $2 billion loss (File photo).

One of the biggest US aeronautics corporations and military contractors General Dynamics has reported an annual loss of USD2 billion, blaming on recent cuts to the government’s defense budget.

The company, which is based in the Washington DC suburb of Falls Church in Virginia, announced plans on Wednesday to reduce its information technology (IT) business by USD2 billion amid the declining government demand, The Washington Post reports Thursday.

The announcement, according to the report, prompted major worries within the Washington metropolitan area since government-based IT contracting has served as the “key ingredient” to the region’s economic growth in the past decade.

Information technology, the daily notes, would likely be “the first segments of the private sector to sustain tangible damage from federal budget cuts – because it’s easier for the government to stop rewiring offices than it is to stop building a ship or a tank.”

The area’s dependence on government contracting work, particularly in the field of IT, makes it especially vulnerable to planned budget cuts agreed to over the past couple of years by US President Barack Obama and the nation’s legislators in Congress.

This is while the US Government “procurement spending” in the area steadily climbed by double digits from 2000 to 2010. In 2012, however, it declined by 5.5 percent, the report says.

Meanwhile, the amount of the loss reported by General Dynamics has “stunned” some analysts “accustomed to years of steady profits at the company.”

Defense contractors, moreover, have been getting ready for the planned military budget cuts as the US-led wars in Iraq and Afghanistan are winding down.

The Defense Department budget is facing budget cuts of nearly 500 billion dollars over 10 years as part of an agreement reached between the US Congress and the White House in 2011.

The report further cites economist as estimating that the planned spending cuts would “destroy some 450,000 jobs” across the Washington metropolitan area, which includes most densely populated areas in states of Virginia and Maryland near the US capital.

MFB/MFB

Most Asian and European stocks fall on Apple’s Q4 results

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People walk in front of the 5th avenue Apple store on January 14, 2013 in New York City. (Spencer Platt/Getty Images/AFP)

People walk in front of the 5th avenue Apple store on January 14, 2013 in New York City. (Spencer Platt/Getty Images/AFP)

Apple’s worse than expected fourth quarter earnings cause a negative push on the major European and Asian stock exchanges on Thursday.

­Apple’s net profits in October-December 2012 stood at $13.1 billion with revenues of $54.5 billion which showed an 18% increase over the same quarter last year. However analysts expected profits to be at $13.53 billion mark and revenues to reach $54.9 billion.

The shares have dropped by 10.5% following the arrival of the quarter earnings and are trading at $461.3 per share. The capitalization loss accounts for $50 billion and the shares have slid by 30% comparied to September 2012. There are fears Apple Inc can lose its unique dynamic and its spot as the biggest company in the world — ExxonMobil is only $20 billion behind. 

Europe’s consolidated index of the biggest corporations slid by 0.20% on Thursday with major indices dropping. The S&P is lower by 0.4% and the MSCI Asia Pacific is down by 0.2%.

Most Asian markets ended lower Thursday amid the gloom over earnings reports from Apple Inc. South Korea’s Kospi and China’s Shanghai Composite Index lost 0.8% each, Taiwan’s Taiex declined 0.6% and Hong Kong’s Hang Seng Index slipped 0.2%.

Obama’s Dirty Wars Exposed at Sundance

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PARK CITY, Utah–As President Barack Obama prepared to be sworn in for his second term as the 44th president of the United States, two courageous journalists premiered a documentary at the annual Sundance Film Festival. “Dirty Wars: The World Is a Battlefield” reaffirms the critical role played by independent journalists like the film’s director, Rick Rowley, and its narrator and central figure, Jeremy Scahill. The increasing pace of U.S. drone strikes, and the Obama administration’s reliance on shadowy special forces to conduct military raids beyond the reach of oversight and accountability, were summarily missed over the inaugural weekend by a U.S. press corps obsessed with first lady Michelle Obama’s new bangs. “Dirty Wars,” along with Scahill’s forthcoming book of the same title, is on target to break that silence … with a bang that matters.

Scahill and Rowley, no strangers to war zones, ventured beyond Kabul, Afghanistan, south to Gardez, in Paktia province, a region dense with armed Taliban and their allies in the Haqqani network, to investigate one of the thousands of night raids that typically go unreported.

Scahill told me: “In Gardez, U.S. special operations forces had intelligence that a Taliban cell was having some sort of a meeting to prepare a suicide bomber. And they raid the house in the middle of the night, and they end up killing five people, including three women, two of whom were pregnant, and … Mohammed Daoud, a senior Afghan police commander who had been trained by the U.S.”

Scahill and Rowley went to the heart of the story, to hear from people who live at the target end of U.S. foreign policy. In Gardez, they interviewed survivors of that violent raid on the night of Feb. 12, 2010. After watching his brother and his wife, his sister and his niece killed by U.S. special forces, Mohammed Sabir was handcuffed on the ground. He watched, helpless, as the U.S. soldiers dug the bullets out of his wife’s corpse with a knife. He and the other surviving men were then flown off by helicopter to another province.

Sabir recounted his ordeal for Rowley’s camera: “My hands and clothes were caked with blood. They didn’t give us water to wash the blood away. The American interrogators had beards and didn’t wear uniforms. They had big muscles and would fly into sudden rages. By the time I got home, all our dead had already been buried. Only my father and my brother were left at home. I didn’t want to live anymore. I wanted to wear a suicide jacket and blow myself up among the Americans. But my brother and my father wouldn’t let me. I wanted a jihad against the Americans.”

Before leaving, Scahill and Rowley made copies of videos from the cellphones of survivors. One demonstrated that it was not a Taliban meeting, but a lively celebration of the birth of a child that the raid interrupted. Rowley described another video: “You can hear voices come over it, and they’re American-accented voices speaking about piecing together their version of the night’s killings, getting their story straight. You hear them trying to concoct a story about how this was something other than a massacre.”

The film shows an image captured in Gardez, by photographer Jeremy Kelly, sometime after the massacre. It showed a U.S. admiral named McRaven, surrounded by Afghan soldiers, offering a sheep as a traditional gesture seeking forgiveness for the massacre. The cover-up had failed.

William McRaven headed the Joint Special Operations Command, or JSOC. Following the thread of JSOC, painstakingly probing scarcely reported night raids, traveling from Afghanistan to Yemen to Somalia, Scahill’s reporting, along with Rowley’s incredible camerawork, constructs for the first time a true, comprehensive picture of JSOC and Commander in Chief Obama’s not-so-brave new world.

The Inauguration Day drone strike in Yemen was the fourth in as many days, along with a similar increase in strikes in Pakistan. The Washington Post reported that Obama has a “playbook” that details when drone strikes are authorized, but it reportedly exempts those conducted by the CIA in Afghanistan and Pakistan. On Inauguration Day, Obama officially nominated John Brennan, a strong advocate for the “enhanced interrogation techniques” that many call torture, and architect of the drone program, to head the CIA.

With the film “Dirty Wars,” co-written with David Riker and directed by Rowley, Jeremy Scahill is pulling back the curtain on JSOC, which has lately exploded into the public eye with the torture-endorsing movie “Zero Dark Thirty,” about the killing of Osama bin Laden. When “Dirty Wars” comes to a theater near you, see it. Sadly, it proves the theater of war is everywhere, or, as its subtitle puts it: “The World Is a Battlefield.” As Scahill told me, “You’re going to see a very different reality, and you’re going to see the hellscape that has been built by a decade of covert war.”

Denis Moynihan contributed research to this column.

© 2012 Amy Goodman

Real players refuse to work with Mourinho

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Real Madrid's coach Jose Mourinho (AFP Photo/Miguel Riopa)

Real Madrid’s coach Jose Mourinho (AFP Photo/Miguel Riopa)

Real Madrid stars are said to be sick and tired of Jose Mourinho, and are demanding the club’s administration get rid of the Portuguese coach at the end of next season.

­According to Marca newspaper, Real’s captain, Iker Casillas, and vice-captain, Sergio Ramos, have held a meeting with Real’s president, Florentino Perez.

The get-together was initially organized to discuss prize money for the current season, with the Madrid sides’ players promised €500,000 each for winning the Champions League.

But the tense situation in the team was also on the agenda as Casillas and Ramos told the president of the team’s decision to ask for a transfer to other clubs if Mourinho remains in charge.

The Portuguese coach, known for his difficult character, has spoiled his relationship with most of his team’s stars.

Even Casillas, who previously seemed irreplaceable in goal, has spent many games on the bench this season.

Real’s poor display in La Liga also adds to the anxiety as the defending champions sit only third in the table, with 15 points separating them from archrivals Barcelona.

Mourinho is one of the most successful managers in the world, having won the Spanish La Liga as well as two English and two Italian league titles.

The 49-year-old also led Porto and Inter Milan to triumphs in the UEFA Champions League in 2004 and 2010.

UN will probe US terror drone attacks

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The United Nations says it will launch an investigation into the impact of the US assassination drone strikes that mainly target civilians in Afghanistan, Pakistan, Yemen and Somalia.

The UN special rapporteur on counterterrorism and human rights, Ben Emmerson, is responsible for the inquiry, which will look into the extent of civilian casualties caused by the airstrikes in Afghanistan, Pakistan, Yemen, and Somalia.

In October 2012, Emmerson called for effective investigations into the drone attacks, describing them as ‘war crimes.’

“If the relevant states are not willing to establish effective independent monitoring mechanisms… then it may in the last resort be necessary for the UN to act,” Emmerson said at the time.

The UN official denounced as indefensible Washington’s claim that it can carry out assassination drone operations anywhere in the world because it is deemed to be an ‘international conflict.’

“The global war paradigm has done immense damage to a previously shared international consensus on the legal framework underlying both international human rights law and international humanitarian law,” Emmerson stated.

The investigation, which is the result of a request by several nations, including Pakistan and two permanent members of the UN Security Council, will report to the UN General Assembly this autumn.

According to the London-based Bureau of Investigative Journalism, more than 3,300 people, many of them women and children, have lost their lives in drone strikes in Pakistan alone since 2004.

On Wednesday, nine people were killed in two separate US drone strikes in Yemen.

Washington claims that it is targeting terrorists, but the drone attacks have mostly led to massive civilian deaths.

The US assassination drone strikes were initiated under former US President George W. Bush, but have escalated under President Barack Obama.

The United Nations has censured the attacks as targeted killings and says they flout international law.

YH/HSN

‘Iran fully ready to defend borders’

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Iran’s Defense Minister Brigadier General Ahmad Vahidi has warned against the adverse consequences of the foreigners’ presence in the region, reaffirming the Islamic Republic’s constant readiness to defend its borders.

“If the presence of extra-regional powers causes an event in our region, we have the readiness to fully protect our borders,” Vahidi told reporters on Thursday.

He called on officials of regional countries, particularly Muslim states, to prevent the influence of Western and hegemonic powers in their own affairs.

Vahidi further noted that Iran would unveil its first space observatory, named Imam Sadeq (PBUH) (the sixth Shiite Imam), within the next few days during Ten-Day Dawn festivities, marking the victory in 1979 of the Islamic Revolution.

He added that the latest Iranian-made fighter jet and new missile products would also be unveiled in the near future.

SF/MA

‘Iran media ban violates free speech’

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A political analyst says the move to take Iranian media channels off the air calls into question the West’s claim of defending freedom of speech, Press TV reports.

“It is really attacking the very fundamental principles which the Europeans claim to spread, which is freedom of speech and freedom of expression,” Intifad Qanbar said in an interview with Press TV on Wednesday.

“Who can decide what is good and what is bad? Why don’t they go and stop many of the hatred-promoting channels… which are spreading… hatred and war and terrorism across the air all over the world?” the analyst asked.

Qanbar criticized the move to take Iranian media off the air as “true hypocrisy” carried out on a “double standard basis.”

“You cannot just hush people whom you don’t like and claim to be democratic and claim to accept and respect freedom of speech as they continue to say,” he pointed out, saying it carried a contradictory message.

In a flagrant violation of freedom of speech, the Spanish government ordered Madrid’s regional government to stop broadcast of Iran’s Spanish-language Hispan TV as of Monday.

This is not the first time that the Iranian media are being targeted.

In October 2012, Eutelsat SA and Intelsat SA stopped the broadcast of several Iranian satellite channels.

In November 2012, the Hong Kong-based Asia Satellite Telecommunications Co. Ltd. (AsiaSat) also took all Iranian channels off the air in East Asia under pressure from the United States.

AR/HJL/MA

Australia to rival Saudi Arabia in oil reserves?

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Image from www.lincenergy.com

Image from www.lincenergy.com

An Australian company claims it has found an untapped shale oil field with estimated reserves that could potentially put the country next to remarkably oil-rich Saudi Arabia. Still, extracting the discovered treasure poses a huge technical challenge.

­Brisbane-based company Linc Energy has presented two estimates by respected independent consultants claiming that drilling and seismic exploration they do in South Australia has brought the prize they have been dreaming of for years — a potentially huge untapped shale oil deposit.

DeGolyer and MacNaughton petroleum industry consulting firm evaluated potential shale oil reserves at Arckaringa Basin around the town of Coober Pedy at 103 billion barrels of oil equivalent (BOE), while Gustavson Associates consulting firm put it as high as 233 billion BOE. That is practically comparable to the proven 263 billion barrel reserves of oil heavyweight Saudi Arabia.

The risked mean estimate given by DeGolyer and MacNaughton put it at a much more moderate 3.5 billion BOE.

“We didn’t expect it to go this nuts,” Linc Energy chief executive Peter Bond told Reuters.

With the current international market oil prices this shale oil could be worth billions of dollars by the most conservative estimate.

“How much is recoverable is always the question. Is it 3 billion barrels or is it 203 billion barrels? Even if it’s 3 or 4 billion barrels… that’s a massive find in this part of the world. No matter how you cut it, it’s still a massive outcome,” Bond said.

In any case, Arckaringa Basin might contain more oil than all of the known Australian oilfields combined, finally making the country fully energy independent.

Though Linc Energy’s shares jumped up immediately after Australian media broadcast the news, using “trillions of dollars” and other superlative degree terms, the company still needs hundreds of millions of dollars just to finish exploration, let alone extracting the black gold commercially. The most important issue now is how much of the discovered oil is recoverable.

Linc Energy, which has already spent about AU$130 million (US$136 million) drilling in the Arckaringa Basin, has hired Barclays Bank to search for a partner to invest AU$150-$300 million into the next stage of the project.

Shale oil of the Arckaringa Basin is hidden beneath serious 1-2km of shale rock, but there is still some good news. Usually, oil is extracted from shale by traditional mining, when shale is crushed and organic matter in it is heated to create liquid oil. At Arckaringa basin engineers found oil in droplets, which means it is already liquid and can be extracted by the modern fracking process.

Unlike in the US, where fracking is widespread and has a tendency to become cheaper, in Australia the costs could be many times higher. If drilling a shale well in America has an average cost of around US$10 million, in Australia it might well reach $15 million per well.

The fracking process by itself has always been raising concerns of environmentalists in the US, where it is widely used to extract shale gas, and also in Europe, because chemicals used in this process seriously pollute groundwater. But for Arckaringa Basin, situated in a practically unpopulated area of the land Down Under, fracking shale oil may pose fewer risks.

Russian, Georgian PMs have first meeting

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Georgian Prime Minister Bidzina Ivanishvili at the World Economic Forum in Davos. (RIA Novosti/Sergey Guneev)

Georgian Prime Minister Bidzina Ivanishvili at the World Economic Forum in Davos. (RIA Novosti/Sergey Guneev)

Russia’s Prime Minister Dmitry Medvedev has met his Georgian counterpart Bidzina Ivanishvili for the first time on the sidelines of the Davos World Economic Forum.

“The Georgian premier approached Medvedev and they talked about something for several minutes,” a Russian businessman, one of the participants of the gathering, told RIA Novosti.

Medvedev and Ivanishvili — who won parliamentary poll in October — were both attending a reception organized for the guests of the forum in Switzerland.

Commenting on the news, the Russian PM’s press secretary Natalia Timakova noted that Medvedev met with heads of many delegations that came to Davos.

It has been the first contact between the heads of the Russian and Georgian governments since the August 2008 war in the Caucasus, following which Moscow and Tbilisi cut their diplomatic ties. Currently, the Swiss embassies represent interests of the two countries.

Google reports record requests for private info

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Google received a record number of requests to disclose user information to governments and law enforcement bodies in 2012. Requests have rocketed by 25 per cent in the last year, with the US leading the field by far in calls for data disclosure.

The search giant published its findings in its annual transparency report, detailing the number of requests for user information by country. Since Google began documenting figures in 2009, there has been an increase of over 70 per cent in disclosure requests. The company says it has complied with 66 per cent of recent cases.

National governments and law enforcement agencies made 42,327 requests for personal data in 2012, a drastic increase from the 34,001 requests in 2011.

The US comprised the most submissions for private information, with over 8,438 requests in the latter half of 2012, a large portion of which were made through subpoenas. Google granted 88 per cent of these requests, the lowest since the search giant began reporting the figures.

None of the other countries in the report even came close the US total, but India came in second, reporting a total of 2,431 in the latter half of 2012, followed by 1,693 from France.

The UK also saw a significant number of requests, 70 per cent of which were granted by the company in 2012.

Google said that it could not specify as to the details of the case, but they did say “the statistics primarily cover requests in criminal matters.”

“In some instances the same Gmail account may be specified in several different requests for user data,” wrote Google in the report. Google also noted the statistics where not a hundred percent accurate because the company can comply with a request sometime after it was lodged.

­

Private data, not a ‘treasure trove’

UK-based rights group Privacy International said that the report showed that “Google, Facebook and Twitter are highly vulnerable to government intrusion.”

“The alarming statistics in this latest Transparency Report serve as a reminder of the need for stronger national and regional privacy protections in relation to online communications,”
said Carla Nyst, head of International Advocacy in a statement.

She went to say that the personal information held by Google “paints a detailed picture of who we are — from our political and religious views to our friendships, associations and locations.”

With this in mind, the government needs to stop treating Google and other similar companies as “treasure troves,” often bypassing judicial authority, concluded Nyst.

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EU double standard?

In spite of the growing quantity of data requests from governments, the EU is moving to put in place more controls on the information Facebook and Google can share without users’ consent.

Last week a German MEP proposed modifications to the 1995 Data Protection Act that would restrict the personal data that Google and Facebook can sell without a user’s consent.

“Users must be informed about what happens with their data,” said Jan Philipp Albrecht, a German Green Party MEP. “And they must be able to consciously agree to data processing or reject it.”

Google and Facebook have protested such modifications to EU legislation, claiming they will impede innovation and damage business in the region.

Opposition blogger flees Russia after paedophile charges — report

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Popular Russian blogger Rustem Adagamov (Reuters/Anton Golubev)

Popular Russian blogger Rustem Adagamov (Reuters/Anton Golubev)

A top-rated Russian blogger and one of the leaders of the independent opposition, Rustem Adagamov, has fled the country after law enforcers repeatedly summoned him for questioning over allegations of the sexual abuse of a 12-year old girl.

The Russian daily Izvestia reports that Adagamov’s former spouse Tatyana Delsal has used the internet to accuse him of paedophilia, and has passed evidence to the Norwegian police. Delsal and Adagamov are both Norwegian citizens. Delsal also told Izvestia that she had no doubt that Adagamov will be convicted for what he had done. She added that the alleged victim wanted to meet Adagamov in court as she was convinced that he would not be able to lie after looking her in the eye.

The ex-wife first voiced her accusations on Youtube and later repeated it in an interview with RT. According to her, some time ago, when they lived in Norway, Adagamov sexually abused a girl who was just 12 at that time. Delsal said this caused her to seek divorce.

Police in the town of Lillesand in Southern Norway have told Russian journalists that they had received Delsal’s report and had already questioned the alleged victim. The police say the alleged victim will remain anonymous in the Norwegian and Russian court documents, adding that this was the main condition set by the woman before she agreed to talk to investigators.

Agents of Russia’s Federal Investigative Committee told the press that they had repeatedly summoned Adagamov in order to question him after the paedophile story broke, but the activist ignored their summons. Adagamov’s lawyer refused to answer questions about his client’s whereabouts, but a source close to investigators told Izvestia that the blogger had fled Russia.

Adagamov continues to work as a professional blogger for the Russian company SUP Media and published several posts this week, but it was not possible to tell his location from them. The blogger closed his Twitter and Facebook accounts about a week ago and refuses to communicate with journalists.

After Delsal made her first accusations Adagamov denied all the charges and threatened to sue anyone who spread the report in social networks, but said he would not take any action against his ex-wife for moral reasons.

Sources in Russian law enforcement bodies have told Izvestia that they received a written statement from Delsal together with some evidence, including some e-mails in which Adagamov confessed to his crime and begged his former spouse not to disclose it.

The case has resonated in Russia not only because of Adagamov’s popularity in social networks, but also due to the fact that the man is a member of the Coordination Council of the Opposition — a body uniting people who are critical of the authorities but who do not support any of the existing Russian political parties and movements. The election to the council took place in October last year and about 80,000 Russians voted — a tiny fraction of Russia’s 108 million voters.

After the ex-wife voiced the paedophilia charges some members of the coordination council suggested that they could vote Adagamov off the body, but added that they needed more solid proof than simple claims.

Adagamov’s place in the council allowed him to participate in several public projects including the public council affiliated with the Culture Ministry, but earlier this month officials said they wanted to expel the blogger because he had not contributed anything in the council’s work. Adagamov replied by an internet post saying that he had not received any invitations or suggestions from other members of the board.

‘IAEA must avoid political stand in talks’

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Alaeddin Boroujerdi, a member of Iran’s Majlis National Security and Foreign Policy Committee

A senior Iranian lawmaker has called on the International Atomic Energy Agency (IAEA) to adopt a non-political approach in its future talks with Tehran.

Alaeddin Boroujerdi, a member of Iran’s Majlis National Security and Foreign Policy Committee, said Wednesday that the IAEA should take legal considerations into account if it wants to make a step forward in the talks with Iran.

“It is the Islamic Republic of Iran’s expectation from the international body to act within the IAEA regulations and the Non-Proliferation treaty (NPT) so that talks will be fruitful,” he said.

The International Atomic Energy Agency should detach itself from the political pressure of the US and the West in order to be able to fulfill its duty, which is supporting the member states, he added.

The Iranian lawmaker said that the body should deal with Iran’s nuclear program technically not politically, adding it has taken a politicized approach under pressure from the West and acts according to the policies of major powers.

Iran and the IAEA wrapped up two days of talks in the Iranian capital Tehran on January 17-18. Iran’s IAEA Ambassador Ali-Asghar Soltanieh said Wednesday that the next round of the talks is scheduled for February 12 or 13.

The United States, Israel and some of their allies have falsely accused Iran of pursuing non-civilian objectives in its nuclear energy program.

Iran has vehemently rejected the allegations against its nuclear energy program, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty (NPT) and a member of the International Atomic Energy Agency (IAEA), it is entitled to use nuclear technology for peaceful objectives.

AR/HJL/MA

Japan sets record 2012 trade deficit

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Japan’s trade deficit hit a new record for 2012. (File photo)

Japan says its trade deficit for 2012 hit a new record as exports suffered from sour diplomatic ties with the country’s biggest market, China.

The Japanese Finance Ministry released the latest official figures on Thursday, indicating that the trade shortfall last year totaled 6.92 trillion yen (about $78 billion), with the deficit in December alone standing at a higher-than-expected 641.5 billion yen.

The data marked a second consecutive annual trade deficit for the world’s third-largest economy.

The figures are bad news for the new government of Shinzo Abe, who won the December election, pledging to boost Japan’s economy.

Meanwhile, lesser demand from the eurozone has also worsened the trade balance of Japan.

“The figures will likely be better in 2013 as overseas economies improve,” said Masahiko Hashimoto, an economist at Daiwa Institute of Research in Tokyo, adding that the impact of a territorial feud with China would probably fade.

“The European economy may continue to worsen until the middle of the year but China and other Asian economies are likely to lead the global economy.”

Tokyo’s deficit with Beijing doubled to a record 3.52 trillion yen, as tensions between the two countries over a group of disputed islands in the East China Sea caused a consumer boycott of Japanese goods in China.

Massive protests held in China over the islands dispute and attacks on Japanese companies and factories prompted Tokyo to shut down its auto business in China temporarily in September 2012.

MSH/HSN/MA

IMF Chief Economist Says the UK Should ‘Slow’ Austerity

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The IMF’s chief economist has suggested that Britain should tone down its austerity plans to help the struggling economy.
Olivier Blanchard said the Budget in March would be a good time for Chancellor George Osborne to “take stock” of his plan A.

The comments, in an interview with BBC Radio 4’s Today programme, came after the body trimmed its forecasts for the UK and global growth.

The British economy is now expected to expand by 1% rather than 1.1% this year, and 1.9% rather than 2.2% next year.

There are fears that official GDP figures for the final quarter of last year, due to be published tomorrow, could show a contraction, adding to pressure on Mr Osborne to ease his approach.

Mr Blanchard said it was clear the world was “not out of the woods yet”.

“We’ve never been passionate about austerity. From the beginning we have always emphasised that fiscal consolidation should be slow and steady,” he said.

“We said that if things look bad at the beginning of 2013 – which they do – then there should be a reassessment of fiscal policy,” he said.

“We still believe that. You have a budget coming in March and we think that would be a good time to take stock and make some adjustments.”

He added: “We think that slower fiscal consolidation in some form may well be appropriate.”

Deputy Prime Minister Nick Clegg said the Government was already taking “sensible and pragmatic” steps to deal with the harder-than-expected recovery.

“I agree with Blanchard when he says we need to be steady and sensible and pragmatic, not dogmatic not ideological, in trying to balance the books,” he told London’s LBC Radio.

“And to be fair to us as a Government, I think we have been much, much more pragmatic than some of our critics (say).
“They said that we are just blindly marching along slashing things left, right and centre.

“Actually, when we realised it was going to take longer to balance the books, we said OK, the rules, the deadline we had originally set were going to be pushed into the future.”

Mr Clegg pointed to the higher-than-expected leap in public sector borrowing in December, revealed in official figures.
“If tax receipts go down and welfare payments go up, we are not going to just keep chasing our tail. We are going to allow borrowing to go up to cover those costs in a sensible and pragmatic way.”

‘Biggest dinosaurs had small brains’

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Though the plant-eating dinosaur Ampelosaurus was among the largest to walk the Earth, it had a tiny brain. That is according to a recent study.

Scientists say that an advanced member of the biggest dinosaurs ever to walk the earth had a tiny brain, the size of a tennis ball.

The scientists studied the skull of fossils of the dinosaur Ampelosaurus, which was discovered in the Spanish city of Cuenca in 2007 during the course of the construction of a rail track.

The reptile was a kind of sauropod named titanosaur, with a long neck and a long tail. The herbivores were found to be the biggest animals ever on the earth.

The scientists scanned the interior of the skull via CT imaging, finding out that the creature’s brain could not have been much bigger than a tennis ball.

“This saurian may have reached 15 meters (49 feet) in length; nonetheless its brain was not in excess of 8 centimeters (3 inches),” said Fabien Knoll, a paleontologist at Spain’s National Museum of Natural Sciences.

“We don’t see much expansion of brain size in this group of animals as they go through time, unlike a lot of mammalian and bird groups, where you see increases in brain size over time,” said Lawrence Witmer, a paleontologist at Ohio University.

The scientists have wondered for years how the biggest animals ever lived with small brains.

“Maybe we should flip that question on their end – maybe we shouldn’t ask how they could function with tiny brains, but what are many modern animals doing with such ridiculously large brains. Cows may be triple-Einsteins compared to most dinosaurs, but why?” Witmer added.

SAB/HJL

US military to lift ban on women in combat

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US Defense Secretary Leon Panetta has decided to lift a ban on women serving in combat, a senior defense official said Wednesday, after a decade of war that saw female troops thrust onto the battlefield.

Panetta and General Martin Dempsey, the chairman of the US Joint Chiefs of Staff, “are expected to announce the lifting of the direct combat exclusion rule for women in the military,” the official, who spoke on condition of anonymity, told reporters.

“This policy change will initiate a process whereby the services will develop plans to implement this decision, which was made by the Secretary of Defense upon the recommendation of the Joint Chiefs of Staff,” the official said in an email.

The official announcement of the move, which would open up hundreds of thousands of combat posts to women, was expected on Thursday, officials said.

In February last year, Panetta removed a ban on women for about 14,000 combat-related jobs in an incremental move that was criticized as timid by some activists.

Calls to lift the blanket prohibition have mounted after more than ten years of war in which women fought and died in counter-insurgency campaigns in Iraq and Afghanistan where front lines were blurred.

Some senior officers have privately voiced concerns that infantry and special forces units require major upper body strength and that difficult physical tests should not be relaxed for female recruits.

But female veterans and activists say they are only demanding an equal chance to apply for combat jobs — and not any special treatment.

US commanders began taking a second look at the ban in 2010 to reflect the reality on the battlefield, as the wars in Iraq and Afghanistan have put women in harm’s way in any case.

Panetta’s decision would apply mainly to the Army and the Marine Corps, as the Air Force and Navy already have lifted most prohibitions on women in combat, with women flying warplanes and launching weapons on ships.

In 2010, the Navy opted to allow women to serve on submarines.

Women make up about 14.5 percent of the active duty US military, or about 204,000 service members, according to the Pentagon.

The American Civil Liberties Union praised the move.

“We are thrilled to hear Secretary Panetta’s announcement today recognizing that qualified women will have the same chance to distinguish themselves in combat as their brothers-in-arms, which they actually already have been doing with valor and distinction,” Ariela Migdal, senior staff attorney with the ACLU Women’s Rights Project, said in statement.

“But we welcome this statement with cautious optimism, as we hope that it will be implemented fairly and quickly so that servicewomen can receive the same recognition for their service as their male counterparts.”

Clegg warning on ‘vague’ EU pledge

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The battlelines over Europe for the next general election are becoming clear after Prime Minister David Cameron promised an in/out referendum by 2017 and Labour leader Ed Miliband set his face against it.

The Conservative leader cheered eurosceptics in his party with the move, even though he vowed to campaign “with all my heart and soul” for continued British membership of a reformed EU.

He faces a stiff test of his negotiating powers in Europe after saying he would try to achieve a “new settlement” for Britain which, if the Tories win the planned 2015 election, would be put to voters in a referendum by the mid-point of the next Parliament.

The referendum promise heaped pressure on Mr Miliband, who said in the Commons he was against the referendum, although aides later insisted the option had not been ruled out altogether. There were signs that some in his party were concerned about Labour going into the next election refusing to match Mr Cameron’s offer.

The plan also brought divisions within the coalition government to the fore, as Liberal Democrat Deputy PM Nick Clegg said renegotiation was “not in the national interest” and would create damaging uncertainty for business.

In a long-awaited speech in London on Wednesday, Mr Cameron said he wanted a new treaty to reform the EU for all its members, but was ready to demand a renegotiated status for Britain alone if other nations did not agree. Draft legislation will be drawn up by the Conservative Party ahead of the election, and will be enacted by the end of 2015 if Tories win to pave the way for renegotiation and referendum within the next two years, he said.

But there were immediate questions over whether other EU states would be prepared to agree special terms for the UK. German Chancellor Angela Merkel said she was ready to find a “fair compromise”, but cautioned that Britain must recognise that other countries would have wishes of their own.

Her foreign minister Guido Westerwelle warned that “cherry-picking is not an option”, while his French opposite number Laurent Fabius said there could be no “a la carte” membership for the UK.

At Prime Minister’s Questions in the House of Commons, Mr Miliband demanded to know whether Mr Cameron would vote for British exit if he failed to achieve his negotiating goals.

“He is going to put Britain through years of uncertainty and take a huge gamble with our economy,” Mr Miliband told MPs. “He has been driven to it not by the national interest, he has been dragged to it by his party. He is running scared of Ukip and has given in to his party and he can’t deliver for Britain.”

Spain’s jobless rate climbs to 26.02%

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People wait in line at a government employment office in Madrid, Spain. (File photo)

Official data indicate that Spain’s unemployment rate hit a record high of 26.02 percent in the third quarter of 2012 as the country continues to grapple with economic problems.

Spain’s National Statistics Institute (INE) released the new data on Thursday. The figures indicated an increase of one percent from October’s reading of 25.02 percent.

The INE further said that the number of unemployed people in Spain soared by 187,300 to reach 5.97 million at the end of 2012.

Unemployment was especially high among Spain’s youth last year, with 60 percent of those under the age of 25 jobless.

The figures come one day after the Bank of Spain reported a worsening of the country’ recession due to budget cuts.

On Wednesday, the central bank announced that Spain’s economy contracted 1.3 percent in 2012 with the gross domestic product (GDP) falling 0.6 percent in the final quarter of 2012 compared with the previous quarter.

Battered by the global financial downturn, the Spanish economy collapsed into recession in the second half of 2008, taking millions of jobs with it.

The fourth-largest economy in the eurozone must lower its deficit to 4.5 percent in 2013 and 2.8 percent in 2014. Many economists, however, say those targets will be difficult to meet amid poor prospects for Spain’s economic recovery.

The Spanish government has also been sharply criticized over its austerity measures that are hitting the middle and working classes the hardest.

YH/HSN

Cost of raising a child soars to £222,000

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The cost of raising a child from birth until their 21st birthday has rocketed to £222,000, according to a study.

The overall figure is more than £4,000 up on last year and £82,000 more than a decade ago – an increase of 58%.

The most expensive areas to raise children over the past decade remain London (£239,123), the South East (£237,233) and the East of England (£233,363).

Families in the South West have seen the biggest hike in costs, now paying £10,077 more per child than they were 10 years ago.

Education and childcare remain the biggest costs, with 76% of parents forced to make cutbacks to meet the financial demands of raising their offspring, the survey for insurer LV= found.

The cost of education, including uniforms, after-school clubs and university costs has rocketed from £32,593 to £72,832 per child in the last decade – a 124% rise. This does not include private school fees.

Childcare costs alone have risen by 61% from £9,613 in 2003 to £6,738.

From birth to the ages of 21, parents spend an average of £19,270 on food and £16,195 on holidays per child.

Of the 2,013 mums and dads that took part in the poll, some reported feeling under pressure to keep up with the latest technological advances, even for children as young as three years old.

More than a quarter of parents (27%) had bought their child an electronic gadget in the last 12 months, with 16% buying a laptop or tablet computer.

On average, they revealed they spent around £302 on gadgets for their children.

The survey found costs have risen in all areas of expenditure apart from clothing, which has seen a 5% drop since 2003.

LV= spokesman Mark Jones said: “The cost of raising a child continues to soar and is now at a 10-year high. Everyone wants the best for their children but the rising cost of living is pushing parents’ finances to the limit.

“There seems to be no sign of this trend reversing. If the costs associated with bringing up children continue to rise at the same pace, parents could face a bill of over £350,000 in 10 years’ time.”

North Korea plans nuclear test ‘aimed at US’

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North Korea plans a nuclear test plus more long-range rocket launches, aimed at what it calls its “arch-enemy” the United States.

“We do not hide that the various satellites and long-range rockets we will continue to launch, as well as the high-level nuclear test we will proceed with, are aimed at our arch-enemy the United States,” the National Defence Commission said.

The mention of the test, which would mark the country’s third detonation of a nuclear device, came towards the end of a commission statement carried by the official Korean Central News Agency.

It gave no indication of when the test might be carried out, or explained the meaning of “high-level”. The country’s two previous nuclear tests were held in 2006 and 2009.

Much of the statement was devoted to condemning Tuesday’s announcement by the UN Security Council of expanded sanctions against Pyongyang in response to its long-range rocket launch last month.

“We absolutely refute all the illegal and outlawed resolutions adopted by the Security Council,” the commission said.

Sky’s Asia Correspondent Mark Stone said: “The statement from the state news agency is pretty alarming.”

Tuesday’s resolution, proposed by the United States, was adopted unanimously by the 15-nation council, including North Korea’s sole major ally China.

North Korea’s foreign ministry had denounced the move on Wednesday, when it also gave the first hint that Pyongyang would react with a nuclear test, saying the country would take “physical actions” to boost its nuclear deterrent.

South Korea’s Yonhap news agency, citing a South Korean intelligence source, reported that Pyongyang had finished technical preparations and could conduct an atomic test within days of a decision by leader Kim Jong-Un.

Last month, a US think-tank reached a similar conclusion based on satellite photos, suggesting the North had repaired rain damage at its nuclear test site and could conduct a detonation at two weeks’ notice.

Berdyev sees M’Vila as Rubin’s future top player

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French midfielder Yann M'Vila (AFP Photo/Franck Fife)

French midfielder Yann M’Vila (AFP Photo/Franck Fife)

Rubin’s new signing French international, Yann M’Vila, has everything to become the Kazan side’s top star, leading them to domestic and international glory, believes coach, Kurban Berdyev.

­“I’m very happy that such a player as Yann M’Vila — the leading midfielder in the French league — will be playing for Rubin,” Berdyev told Rubin’s official website. “Of course, he’ll help the team and his arrival will allow our team to find a new game and create an efficient squad capable of solving serious tasks not only in Russia, but in Europe as well.”

“Yann is still a young player, and I hope that with every year he’ll add to his game and will become a true leader of the team,” he added.

M’Vila’s €12-millon move from French side Rennes to Kazan has so far been the biggest transfer of the Russian Premier League winter break.

The 22-year-old has signed a 4 and a half year deal with Rubin with the salary of €3 million per season after tax.

The defensive midfielder has 22 caps and one goal for the French national team and was on the country’s squad at Euro 2012.

Last summer, Russian champions Zenit considered the player, but M’Vila decided not to go to Saint Petersburg after receiving threats from the club’s racist fans.

Syria militants ruin religious sites: HRW

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Human Rights Watch says the militant groups in Syria have destroyed ‘religious sites’ in the northern part of the country.

The rights organization said on Wednesday that the militants appeared to have attacked religious locations following a four-day investigation in the provinces of Latakia and Idlib.

A Shia place of worship was destroyed by the militants in Idlib, while two Christian churches were looted in Latakia, the rights body stated.

Many people, including large numbers of security forces, have been killed since chaos broke out in Syria nearly two years ago.

According to a UN report, militants from nearly 30 countries have been filtered into Syria to fight against the government. Most of the militants are extremist Salafists.

Human Rights Watch further stated that Syria’s opposition has failed to control the armed militants who are engaged in “looting and other criminal activities, like kidnappings.”

Sarah Leah Whitson, the Middle East director at Human Rights Watch, said, “Syria will lose its rich cultural and religious diversity if armed groups do not respect places of worship.”

“Human Rights Watch researchers observed what appeared to be deliberate damage to the local Husseiniya, a Shia place of worship,” caused by the militants after they entered the village of Zarzour in December.

On Wednesday, Russian Foreign Minister Sergei Lavrov took a swipe at the Syrian opposition for its insistence on the removal of President Bashar al-Assad from power.

“As long as this irreconcilable position remains in place, nothing good can happen. Armed actions will continue and people will die,” Lavrov stated.

MKA/HSN

National Television Awards: Bill Tarmey Tribute

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The stars of Coronation Street remembered the late Bill Tarmey as they picked up two prizes at the National Television Awards.

The long-running ITV soap was named best serial drama and Alan Halsall, who played Tarmey’s on-screen foster son Tyrone Dobbs, won the award for serial drama performance.

Accepting his award, Halsall paid tribute to Tarmey, who died last year after playing Jack Duckworth in the soap for decades, saying: “I love you pal.”

Speaking backstage, he paid further tribute to Tarmey, saying the actor would be looking down on him.

He said: “I’m sure he is. He’ll be having a pint of Guinness for me. His wife asked me to wear his watch tonight so I’ve got it on.

“This is for him, he guided me literally from the start of my career at Coronation Street, he was such a huge, huge influence on my life like a second dad on screen.

“He’d be laughing at this right now, he used to say, ‘none of that bloody acting’.”

The show’s producer Phil Collinson also paid tribute to Tarmey, saying: “This year we lost a stalwart of Coronation Street who was just so much a part of everybody’s life for a long time, Bill Tarmey, and so I think we’d love to dedicate this to Bill.”

Among the stars at Wednesday night’s event, at the O2 in Greenwich, south east London, were X Factor judge Tulisa Contostavlos, Downton Abbey’s Hugh Bonneville and Olympian Sir Chris Hoy.

EastEnders stars Jacqueline Jossa and Shona McGarty and the cast of The Only Way Is Essex also posed for photographers as they arrived on the red carpet.

The first award, for entertainment programme went to I’m A Celebrity… Get Me Out Of Here!

Two of the contestants who survived last year’s stint in the jungle, Helen Flanagan and Ashley Roberts, picked up the award explaining the show’s winner Charlie Brooks could not make it because she was with a friend who was giving birth.

The second award went to Sir David Attenborough’s BBC natural history show Frozen Planet which won best documentary series.

QI was named the best comedy panel show, beating competition including Have I Got News For You and Mock The Week.

One of the big surprises of the night saw Merlin star Colin Morgan win the award for the best male drama performance, beating much-fancied rivals in Sherlock star Benedict Cumberbatch and Doctor Who’s Matt Smith.

Downton Abbey was named best drama, beating shows including Sherlock and Doctor Who.

In cash Russians trust

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Ruble and euro banknotes of different denominations. (RIA Novosti/Igor Samoilov)

Ruble and euro banknotes of different denominations. (RIA Novosti/Igor Samoilov)

Russians’ love for cash remains strong, as the amount of ‘live money’ in the country up 11.2% in 2012 – CBR.

Last year the amount of cash in circulation in Russia stood at 7,676bln roubles, according to a research by the Central Bank of Russia (CBR), compared to 6,903bn roubles in 2011. Russia had the highest growth of cash in the economy, followed by China and the USA.

The number of banknotes throughout the world economies has been growing, with ‘live money’ set to remain a favorite means of payment for years to come, says Alekxandr Yurov, director at CBR money circulation department.

It’ll take generations to make people completely switch to something alternative like electronic payments, but when that happens it’ll have been another civilization, Yurov added.

In Russia, where electronic payments have emerged quite recently, people simply haven’t had enough time to get used to money that can’t be touched. A lack of the necessary infrastructure, such as point of sale terminals adds to the strong favor towards cash, explained the CBR official.

“About 17% of Russians who want to pay for their purchases by a card are rejected — simply because shops don’t have such a device,” Yurov concluded.

Ski cross coach ‘amazed’ by Russian progress

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Mario Rafetzeder, head coach of Russia’s freestyle skiing team in ski cross. (RIA Novosti / Evgeny Biyatov)

(24.7Mb) embed video

Russia’s progress in the relatively new sport of ski cross has been remarkable, says national team coach, Mario Rafetzeder, adding that his men now have a good chance to be on the podium at the home Olympics in Sochi 2014.

­Mario Rafetzeder looks young enough to still be competing, however, injury put paid to the 33-year-old’s promising skiing career.

He turned his attention to coaching ski cross — a discipline he’s excelling at. His attention is now firmly fixed on trying to get Russia onto the podium next year in Sochi.

“I had a lot of success and a lot of experience,”
Rafetzeder told RT. “I think that’s the reason, why I’m coming here — to bring some experience to the Russians for the ski cross. Of course, ski cross is a young sport, but I think — we saw it in the last Olympics — it’s one of the spectacular sports.”  

Rafetzeder saw Russia struggle in Vancouver in 2010 as he was coaching the Austrian team, which came away from Canada with a silver medal.

Russia has been slow to adapt in the sport of ski cross. However, in the two and a half years Mario has been coaching his adopted nation, he has witnessed dramatic improvement.

“The progress is really amazing because when I worked with the Austrians nobody knew about the Russians. It was the smallest team,” the coach remembered. “And now — after two-and-a-half years — we have made really big process. Now everybody knows us, everybody respects us. That’s what I wanted. And when we start next year everybody should be scared of the Russians.”

It is no surprise that ski cross is rapidly growing in popularity. Four skiers go head to head with the first two qualifying for the next round, with the final four left — battling it out for the medals.

The USA, Canada, Austria and Switzerland have traditionally dominated the event.

Egor Korotkov, who came close to winning Russia’s first ever Cross Ski World Cup, is one of the names to look out for in Sochi, with Rafetzeder being very impressed by his progress.

But the Austrian believes each member of his team are capable of doing well at the home Games.  

“Egor has really good potential. He works very well,” he said. “But I must really say when I go to Sochi all of my guys have a chance for a medal.”  

Mario say’s he really enjoys the Russian mentality and has found it very easy to work with his new squad.

He’s thriving under the pressure of Russia hosting the next Olympics and has the utmost confidence in his team.

He will have been in the job for almost three-and-a-half years when the Sochi Games get underway, and he’s desperate to see his skiers live up to their true potential.

Sharapova crashes out of Australian Open

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Maria Sharapova of Russia reacts during her women's singles semi-final match against Li Na of China at the Australian Open tennis tournament in Melbourne January 24, 2013. (Reuters/Damir Sagolj)

Maria Sharapova of Russia reacts during her women’s singles semi-final match against Li Na of China at the Australian Open tennis tournament in Melbourne January 24, 2013. (Reuters/Damir Sagolj)

China’s Li Na thrashed Russian champion Maria Sharapova in a convincing straight sets victory in Melbourne, putting the Chinese contender through to the final. Li dominated the match, storming through to win 6-2 6-2.

The 30-year-old tennis veteran Li Na will now face off against Belarusian Victoria Azarenka. The defending champion defeated 19-year-old American Sloane Stephens in the other semi.

Sharapova made a shaky start to the match, serving up a double fault on the first point. Li Na then left the Russian in the dust, breaking Sharapova’s serve for the first time in the tournament and taking the first set 6-2.

In spite of Sharapova’s attempts to secure a hold in the second set, an unrelenting display of tennis from the Chinese number six seed left the Russian powerless to respond.

Li Na made short work of the Russian, closing the match in one hour and 33 minutes.

Prior to the match Sharapova had blazed a trail through the tournament, relinquishing just nine games on her road to the semi-finals. However, in less than a set Sharapova had lost the same number of games as in all of her previous matches combined.

The pair have met previously on 12 occasions, with Sharapova holding an 8-4 win-loss record.

Japan water-cannons Taiwanese boat

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File photo of a Japanese coast guard vessel (L) near the disputed islands in the East China Sea

Japan’s coast guard has fired water cannons at a Taiwanese boat transporting a group of activists to the disputed islands in the East China Sea.

“After entering our country’s contiguous zone, the vessel with foreign activists on board continued sailing east. So our patrol boat carried out restrictions on the vessel such as blocking its path and discharging water,” the coast guard said in a statement on Thursday.

The firing took place when the Taiwanese boat was around 32 kilometers (20 miles) west-southwest of the Senkaku Islands, known in Japan, or Diaoyu Islands, known in China.

“The vessel left our country’s contiguous zone at around 1:30 p.m. (0430 GMT) and continued sailing west-southwest away from the Senkakus,” the coast guard said.

The seven activists set sail for the isles during the early hours of Thursday.

Japan and China have long been in a dispute over the sovereignty of the islands, which would give the owner exclusive oil, mineral and fishing rights in the surrounding waters.

Hsieh Mang-lin, the Taiwanese chairman of the Chinese Association for Protecting the Diaoyutais (Diaoyu Islands), said in a statement that the group intended to “maintain sovereignty” against Japan’s control.

In September 2012, Japanese and Taiwanese coastguard vessels dueled with water cannon after dozens of Taiwanese boats were escorted by patrol ships into the waters around the archipelago.

China’s National Administration of Surveying, Mapping and Geoinformation said a few days ago that Beijing was set to carry out a detailed survey of the disputed isles.

The administration said the geographical survey was part of a comprehensive program to map the country’s “territorial islands and reefs.”

The announcement came a day after Japanese media said Tokyo would deploy two more patrol ships near the disputed islands for defensive purposes.

The islands are controlled by Japan and form part of Okinawa prefecture.

Tensions heightened between the two countries after Japan signed a deal on September 11, 2012 to buy three of the islands from their private Japanese owner in line with plans to nationalize the archipelago.

MSH/HSN

Portugal holds Iran cultural week

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Portugal is holding a week-long Iranian cultural exhibition in the city of Cascais to provide an opportunity to introduce the Persian civilization to the Portuguese, Press TV reports.

The cultural event kicked off on Wednesday at Cascais’ cultural center, exhibiting Persian paintings, handicrafts, literature and music.

The cultural week is aimed at providing visitors with an insight into Iran’s civilization and culture.

The artists who participate in the event showcase their skills in calligraphy, miniatures, khatam-kari, which is an Iranian art of crafting micro-mosaic, and monabat-kari, the art of carving on wood.

The event is also a good opportunity for Portuguese and Iranian investors to meet and discuss further cooperation.

Julio Appleton, from a Portuguese consulting company, told Press TV that the company was seeking investments in Iran.

Iran’s embassy in the Portuguese capital, Lisbon, held a film week in collaboration with Portugal’s Cinema Museum last December to introduce Iranian cinematic arts and culture.

SAB/HJL

Baby girl tossed from car crash, narrowly escapes being run over by truck (VIDEO)

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Still from YouTube video/grishkin1983

(6.4Mb) embed video

A year-old girl has survived after being ejected from her parents’ car when they spun out of control and crashed on a highway in Russia. The dashboard camera of a passing car captured the accident.

­The miraculous escape happened on the icy Moscow-Ufa highway. An SUV was trying to overtake, went into a spin and hit a truck in the oncoming lane. As the back window popped out in the crash, a one-year-old girl was thrown out of the vehicle together with much of her family’s belongings.

Once on the roadway and trying to crawl back to her car, the toddler barely escaped being run over by a passing truck. The driver of the truck risked going into spin as he swerved to avoid hitting the child. The following truck managed to stop and allow the parents rescue her.

The panicked parents jumped out of their crashed vehicle to remover the girl from the roadway.

The lucky toddler was taken to the hospital with a head injury. 

Police say it was illegal to overtake on that section of the highway. Also, the girl was not in a car seat, which would have stopped her from being ejected and made her trip safer.

Still from YouTube video/grishkin1983
Still from YouTube video/grishkin1983

Still from YouTube video/grishkin1983
Still from YouTube video/grishkin1983

‘Anti-Iran claims, smokescreen for Israel’

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Iran’s Deputy Permanent Representative to the UN Gholam-Hossein Dehqani says Israel spreads anti-Iran propaganda with the aim of diverting public attention from Tel Aviv’s crimes, including its settlement activities.

While, over the past 65 years, it has been a consensus of the international community that the Palestinian issue is the main problem of the Middle East, the Zionist regime and its supporter, the US, seek to disrupt the Security Council agenda about Israeli crimes, in particular its settlements and the freezing of Palestinian tax revenues, and divert attention to Iran’s peaceful nuclear program, Dehqani said at a UN Security Council meeting on the Middle East on Wednesday.

The more ridiculous thing is that the regime that is leveling unfounded allegations against Iran’s peaceful nuclear program is itself the only possessor of nuclear weapons in the Middle East, Dehqani added in response to accusations by the Israeli delegation at the meeting.

He described Israel’s nukes and its record of terrorism and aggression as the main source of concern for the Middle Eastern countries and added, the regime’s attempts to conceal its aggressive measures behind unfounded allegations against Iran reveal it to anyone that Israel uses anti-Iran propaganda as a smokescreen to mask its acts and to divert public opinion from its crimes.

Dehqani, speaking on behalf of the Non-Aligned Movement (NAM), condemned Israel’s aggressions including its increased settlement activities as a violation of international law and UN resolutions.

He also condemned Israel’s measure to withhold Palestinians’ tax revenues as a collective punishment aimed at worsening their economic situation.

The NAM condemns such measures by Israel and calls on the UN Security Council to fulfill its obligations under the UN Charter to restore global peace and security, in particular towards the Palestinian issue, he said.

Earlier this month, Israeli Prime Minister Benjamin Netanyahu described Iran’s nuclear energy program as “the problem of the world” in an attempt to downplay the illegal Israeli settlement expansion.

This is while Tel Aviv’s new settlement policies have drawn international criticism and condemnation. Many countries, including some of Israel’s allies, have censured the latest Israeli plans to construct more settler units in the occupied Palestinian territories.

The United States, Israel and some of their allies have falsely accused Iran of pursuing non-civilian objectives in its nuclear energy program.

Iran has vehemently rejected the allegation, arguing that as a committed signatory to the nuclear Non-Proliferation Treaty (NPT) and a member of the International Atomic Energy Agency (IAEA), it is entitled to use nuclear technology for peaceful objectives.

AR/HJL/MA

US teacher held for abusing 19 kids

Former LAUSD elementary school teacher Mark Berndt, 61, faces 23 counts of lewd conduct and child abuse.

An American elementary school teacher has been detained near Los Angeles for allegedly committing sexual abuse and lewd acts involving 19 children.

Prosecutors filed 15 charges against 57-year-old teacher Robert Pimental on Wednesday involving 12 victims while police detectives note that he has also abused seven more children and an adult for which no charges have yet been filed, The Los Angeles Times reports Thursday.

Pimental, a Los Angeles Unified School District (LAUSD) fourth grade teacher, is accused of “committing lewd acts and continual sexual abuse [fondling] of numerous students,” the report states, quoting Los Angele Police Capt. Fabian Lizzaraga.

The allegations, it adds, date back to March 2012, when LAUSD officials replaced principal of the elementary school where Pimental worked when it initially opened a probe into alleged sexual misconduct by what they would only describe as a “male teacher.”

According to the report, the case is one “of the most serious” sexual abuse cases at a LAUSD elementary school since a similar case last year involving a teacher at the school district’s Miramonte Elementary.

“Former Miramonte teacher Mark Berndt, 61, faces 23 counts of lewd conduct and is being held in lieu of $23-million bail,” the paper adds.

Berndt, according to the daily, has been accused of “spoon-feeding his semen to blindfolded children as part of what he allegedly called a tasting game.”

Moreover, he has allegedly placed cockroaches on children’s faces “and feeding them semen-tainted cookies at the school.”

The development comes after recent news reports about sexual abuse of children by Catholic priests over numerous years in California and by an ultra-Orthodox Jewish counselor in New York.

MFB/MFB

UK Border Force Attacked Over ‘Backlog’ Of 16,000 Immigration Cases

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An “unacceptable” backlog of more than 16,000 immigrants waiting to hear whether they can stay in Britain has been discovered in a fresh investigation into UK border controls.

Some 14,000 applicants, growing at a rate of 700 a month, had already been refused the right to stay but are still pleading with the UK Border Agency (UKBA) to reconsider.

And an additional 2,100 cases – shipped in a box from an office in Croydon to Sheffield – were still waiting for an initial decision at the time of the inspection – with some dating back a decade. The UKBA said these have since been cleared.

immigration

Immigration procedure has been slammed for being chaotic and inefficient

The backlogs were discovered by the Independent Chief Inspector for Borders and Immigration John Vine as part of an inquiry into applications to remain in Britain on the basis of marriage.

“This is completely unacceptable and I expect the Agency to deal with both types of case as a matter of urgency,” Mr Vine said.

The inspector said he was “surprised” to discover the UKBA is also failing to check whether applicants earn enough to look after themselves without having to rely on state handouts.

theresa may foreign students

Theresa May has been criticised over the backlog

Meanwhile, a separate inspection into how the UKBA and Border Force deal with criminals at ports, such as Heathrow Airport, discovered that the policy of swift removal is being rendered ineffective by the level of immigrants claiming asylum.

UKBA staff told the inspector the agency was sitting on 14,000 refused cases that the UKBA was asked to reconsider because there was “no policy” on how to deal with them.

Further investigation discovered “confusion” among staff, with one senior manager informing the inspector there was nothing to stop the cases from progressing.

Sir Andrew Green, chairman of campaigners Migration Watch UK, said: “This is yet further evidence of the chaos in the immigration system from which they are taking years to recover.”

During the inspection, Mr Vine discovered 2,100 cases that had yet to receive an initial decision, including some dating back as far as 2003.

Around 180 of these applicants wanted to stay in the UK due to marriage or a civil partnership, while the remaining cases related to other reasons.

In his report, Mr Vine said: “This situation causes anxiety, uncertainty and frustration for those individuals and their family members.

“Delays in deciding applications also mean that enforcement action is likely to be more difficult in the event that the case is ultimately refused.

“This is because the individual will have been in the UK for a number of years and may have developed a family or private life.”

UKBA staff are not consistently applying the “income support threshold” rule to applicants who want to stay in the UK due to marriage, the report also found.

In one case, an applicant applied to stay in Britain because he was married to a person settled in the country who had a disposable income of around £200 per month – far below the minimum income support level.

The inspector also found that the percentage of allowed appeals in marriage cases was too high at 53% between April 2011 and February 2012.

Mr Vine said: “The agency needs to improve the quality of its initial decision-making to avoid the cost of unnecessary legal challenges and to reduce the proportion of allowed appeals where its refusal decisions are challenged.”

The inspector’s report also highlighted problems with the agency failing to take into account the rights of children when refusing further leave in the UK.

Mr Vine said children’s rights were given specific consideration in one out of 21 examined cases of applicants refused leave in the UK, while the impact on UK-based children was not considered in any of the 39 overseas cases examined.

In a separate report on customs offences, the inspector found that the policy of using swift removal as an alternative to prosecution was not available in a large proportion of immigration cases.

Some 73% of the individuals covered by the investigation claimed asylum, meaning they could not be removed from the UK until decisions had been made.

Some 36% of cases remained in the UK awaiting the outcome of an appeal or a decision on their initial claim and nine individuals were found to be waiting nearly a year without a decision.

Keith Vaz MP, chairman of the Home Affairs Select Committee, said: “These backlogs are a disease that has infected our immigration policy. What is more, as the backlog increases each month it is clear that this disease is spreading. The way the Agency operates requires urgent surgery of the most profound kind.”

Shadow immigration minister Chris Bryant attacked Home Secretary Theresa May’s management of the UKBA.

He said: “In recent months we have learnt of files left unopened, letters left unanswered, hundreds of original decisions being overturned on appeal and applicants coming to Britain who did not prove they could support themselves.

“It all adds up to delay, confusion and a massive waste of taxpayers’ money.

A Home Office spokeswoman said: “The Agency is taking action to deal with historic backlogs and has a transformation plan that will put the Agency on a surer footing.

“This group of people have already been refused but are trying to circumvent the appeals process by requesting an informal ‘reconsideration’.

“We’ve changed the rules to make clear that those not happy with the original decision should re-apply or appeal and if they choose not to, they should leave the UK voluntarily. We are contacting them to make sure they do this, but if they refuse we will enforce their removal.”

Mathematics: Subject Parents Fear Most

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More than half of parents are confused by the methods schools use to teach maths, a poll suggests.

Nearly one third admit they lack the confidence in their own numeracy skills to help their children with their primary school maths homework.

The poll of 2,000 parents of primary school pupils shows they find maths the most difficult subject for them to help their children to master, beaten only by French.

Mums and dads taking part in the survey were also asked to complete a test related to mathematics usually taught to eight to 12-year-olds. Only 5% answered all 10 questions correctly.

The survey, by learning company Pearson, has been published to coincide with the launch of a new primary school maths homework service, Maths Made Easy, backed by maths whizz and TV presenter Carol Vorderman.

She said: “Studies have shown that if parents help their children with homework they are more likely to succeed at school.

“It is therefore worrying that so many parents lack confidence in their own maths skills.

“It’s imperative that children are given the opportunity to learn maths in a way that is fun, accessible and engaging, both at home and in the classroom.

“Both Maths Made Easy and my online maths school, themathsfactor.com combine traditional and new ways of learning maths to deliver improvements in maths ability.

“Handily, parents can log on to the Maths Made Easy service to see how their child is progressing and even try their hand at the same exercises as their child.”

Bahraini princess faces torture charges

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A Bahraini princess has been charged with torturing pro-democracy activists detained in the country, a report says.

The state-run BBC reported on Wednesday that Noura Bint Ebrahim Al Khalifa, who serves in Bahrain’s Drugs Control Unit, was accused of harassing three activists in detention.

In February 2011, massive protests broke out in Bahrain, with people taking to the streets and calling for a constitutional monarchy – a demand that later turned into calls for the ouster of the monarchy.

The Bahraini regime promptly launched a brutal crackdown on the peaceful protests and called in Saudi-led Arab forces from neighboring Persian Gulf states.

Dozens of people have been killed in the crackdown, and security forces have arrested hundreds, including rights activists, doctors and nurses.

The 29-year-old princess was accused of torturing two doctors, Ghassan and Bassem Daif, who worked at the Salmaniya medical complex in Manama.

Medical personnel from the Salmaniya center had helped wounded protesters after Bahraini regime forces tried to forcefully disperse thousands of anti-regime demonstrators in the capital.

The princess was charged with torturing the two in March and April 2011, when many of the health workers were arrested.

Bint Ebrahim Al Khalifa also faces charges of torturing a 21-year-old girl, Ayad al-Qurmazi in March 2011, when she was detained on charges of reading her anti-Al Khalifa poem to the public during the protests in 2011.

Al-Qurmazi said she was held for nine days, blindfolded, beaten with cables and threatened with rape. Later, she identified the princess as her torturer.

She quoted the princess as saying while torturing al-Qurmazi, “The people you criticize are your masters, and they will remain in power forever, whether you like it or not.”

Bint Ebrahim Al Khalifa has denied the charges against her.

MKA/HSN

Seattle Teachers’ Boycott of High Stakes Tests Spreads

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North Korea says missiles ‘aimed at’ US

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File photo shows North Korean rocket Unha-3, carrying the satellite Kwangmyongsong-3, lifting off from it launching pad in North Pyongyang Province on December 12, 2012.

North Korea says it will launch more long-range rockets and carry out a high-level nuclear test, aimed at the United States.

“We do not hide that the various satellites and long-range rockets we will continue to launch, as well as the high-level nuclear test we will proceed with, are aimed at our arch-enemy the United States,” said North Korea’s National Defense Commission on Thursday.

The defense commission statement offered no timeframe of when the country intended to perform the test.

On Tuesday, the United Nations Security Council adopted a US-backed resolution to sanction North Korea for launching a long-range rocket in December 2012.

The North Korean National Defense Commission said the resolution “masterminded by the US has brought its hostile policy towards the Democratic People’s Republic of Korea (North Korea) to its most dangerous stage.”

It also dismissed as “illegal and outlawed” such resolutions adopted by the UN Security Council.

On December 12, 2012, Pyongyang announced that it had launched a long-range rocket from the Sohae Satellite Launching Station, located in Cholsan County of North Pyongyang Province, and successfully placed a satellite into orbit.

However, the rocket launch drew widespread criticism from the European Union and the UN.

On December 14, North Korean leader Kim Jong-Un said the country would go ahead with its space program and would launch more rockets and send more satellites into orbit.

However, Washington and its allies said the North Korean rocket launch had been a cover for testing an intercontinental ballistic missile capable of carrying a nuclear warhead.

YH/HSN

More snow expected before the thaw

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Recent heavy bursts of snow across Britain will be replaced with milder temperatures next week, raising fears of flooding as the snow begins to melt.

But before the welcome respite arrives, a final heavy snowfall will hit Britain on Friday, focusing on northern England and southern Scotland which will see up to 15cm predicted in high ground.

Thursday will see only light flurries of snow compared to recent days, felt along the eastern coast and in the Midlands.

A sharp increase in temperature, possibly reaching in 10C in the south west on Sunday, will spark a rapid thaw and the Environment Agency has warned of minor localised flooding in some areas. It is coupled with rain crossing the south west on Friday and further showers over parts of the UK at the weekend.

It prompted advice from the Environment Agency urging people to build snowmen, as the compacted structures stay cold for longer and could help regulate the flow of water.

Roy Stokes, from the Agency, was reported as saying: “Ideally, if everybody built themselves a snowman that will slow the thaw down a bit. If you notice, when people clear their drive the snow thaws away but the compacted piles stay which will give a balanced thaw, which would be helpful.”

A spokeswoman later said that building a snowman would have a limited impact on the rate of thawing.

Nick Prebble, a forecaster for MeteoGroup, the weather division for the Press Association, said: “Tomorrow will see a band of snow, sleet and rain come across from the west and push eastwards into Saturday morning. But that will be the last of the snow before an unsettled, milder week next week.”

Southeastern Trains has cancelled a number of early morning trains in order to use the carriages on other services. It said Network Rail had asked it to run some of the early morning services with more carriages, because it makes the trains less likely to be affected by icy rails.

The severe weather has been blamed for at least nine deaths and has caused widespread disruption.The snow also forced the closure of hundreds of schools across Wales for a second day running and in Somerset, gritter crews have been working around the clock after nearly 15cm of snow.

Chicago Warehouse Covered In Ice After Fire

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About 200 firefighters battled to put out a massive fire at an empty warehouse in Chicago as glacial temperatures turned water to ice.

Fire department officials said the blaze on Tuesday evening was among the biggest in recent years.

About a third of the city’s firefighters were at the scene at one point or another.

The cause of the blaze in the vacant building is still being investigated.

The efforts to tame the fire, which threatened an adjacent building, were made difficult by temperatures that were well below zero, encasing fire trucks and the building into ice.

Water froze on the firefighters’ uniforms and gloves. After several hours, the fire was put out, with ice sheets covering the remains of the building.

The American Midwest has been experiencing a cold snap since the weekend, with frigid Arctic air coming from Canada.

Market Buzz: Russia looks outwards

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Reuters/Jose Manuel Ribeiro

Reuters/Jose Manuel Ribeiro

Russian indices are expected to grow further on Thursday following a successful trading day earlier. The RTS grew by 1.3% and the MICEX gained 0.8%.

­The majority of Russian blue chips were also on the rise with Norilsk Nickel in the lead with +1%, Sberbank, Gazprom and Lukoil stocks rose 0.95%, 0.55% and 0.09% respectively.

No major corporate events are expected today in Russia and stocks will primarily focus on foreign colleagues when determining the motion vector for the day.

European stock exchanges closed in the mix on Wednesday. The FTSE 100 gained 0.30% and the DAX rose 0.15%, the CAC 40 lost 0.40%.

Markets in Asia are also in mixed territory. The Nikkei 225 is higher by 0.81%, while the Shanghai Composite is leading the Hang Seng lower. They are down 0.17% and 0.16% respectively.

North American stocks showed positive trading with the Dow Jones gaining 0.49%, the S&P rising by 0.15% and the NASDAQ climbing up by 0.33%. American indices gained support from the ongoing season of annual corporate reports. Data posted by Google, IBM and McDonalds came in higher than expected, which stimulated the trading of some indices. Miscrosoft, Starbucks and Xerox are expected to deliver their reports later today. Also the US is to publish unemployment index and oil reserve data on Thursday.

Assange calls WikiLeaks film ‘propaganda attack’

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Julian Assange (Reuters / Luke MacGregor)

Julian Assange (Reuters / Luke MacGregor)

Julian Assange has lashed out at a Hollywood film about WikiLeaks, calling it “a massive propaganda attack” against the whistle blowing website, also accusibg it of fanning “flames of war” against Iran.

DreamWorks Studious announced Wednesday that “The Fifth Estate,” starring British actor Benedict Cumberbatch as Assange, will be released in the United States in November 2013. The film’s director though says it will not try to pass final judgment on Assange.

The famous whistleblower, who managed to obtain a copy of the script, denounced the film as “a lie.” He spoke to students of Britain’s top Oxford University on Wednesday via a video-link from his refuge in the Ecuadorian Embassy in London.

“It is a lie upon lie. The movie is a massive propaganda attack on WikiLeaks and the character of my staff,” he told the Oxford Union debating club.

However the video of Assange’s speech has not yet been posted on the Oxford Union Society’s YouTube channel, where the organization usually publishes such videos.

“‘The Fifth Estate’ traces the heady, early days of WikiLeaks, culminating in the release of a series of controversial and history changing information leaks,” DreamWorks said describing its project.

Among those “leaks” featured in the film are implications that Iran is working on a nuclear bomb. Assange rejected such notion and claimed the film “fans the flames to start a war with Iran.”

“How does this have anything to do with us?” the Australian questioned.

“It may be decades before we understand the full impact of WikiLeaks and how it’s revolutionized the spread of information,” the film’s director, Bill Condon said. “So this film won’t claim any long view authority on its subject, or attempt any final judgment,” said Condon in a statement.

Assange has been confined inside the Ecuadorian Embassy since the 19th of June, after Ecuador granted him political asylum. Should he leave the building the whistleblower faces immediate arrest and extradition to Sweden, where he is wanted for questioning on charges of sex crimes.

Despite all the difficulties the WikiLeaks faced in 2012, Julian Assange vowed to publish some 1,000,000 new documents in the coming year. In his Christmas speech he called for people to continue fighting for democracy “from Tahrir to London.”

Mali forces accused of myriad abuses in Western-backed fight

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Malian soldiers patrol in a street of Diabaly on January 23, 2013 (AFP Photo / Eric Feferberg)

Malian soldiers patrol in a street of Diabaly on January 23, 2013 (AFP Photo / Eric Feferberg)

Mali’s army has been carrying out summary executions in its war with Islamist rebels, an international human rights group claims. Meanwhile Russia’s FM says Mali’s insurgency is made up of groups that got NATO backing in its 2011 Libyan excursion.

The International Federation for Human Rights (FIDH) says Mali’s army has been killing people it accuses of being “infiltrators” or rebel “accomplices” — but also those who are seen carrying weapons, or who are simply unable to produce identification.

Summary executions have been documented in at least three towns, while ethnic Tuaregs in the capital Bamako have had their houses raided by Malian troops, the group says.

“In Sévaré, at least 11 individuals were executed in the military camp, near the bus station and near the hospital. Reliable information report close to 20 other executions in the same area where bodies are said to have been buried very hastily, in particular in the wells,” the FIDH said in a statement.

“Other allegations of summary executions continue to come from all areas of the west and center of the country,” it continued.

Malian Army Captain Modibo Traore called the allegations “completely false,” as quoted by AP.

The Malian and French forces are fighting the same rebels Western powers armed in the Libyan uprising that ended in the ouster of Muammar Gaddafi, Russian Foreign Minister Sergey Lavrov told a press conference Wednesday.

“Those whom the French and Africans are fighting now in Mali are the people … our Western partners armed so that they would overthrow the Gaddafi regime,” he said.

“Terrorist acts have become almost daily in the region, arms are spreading in uncontrollably, infiltration by militants is taking place,” Lavrov continued.

He denied claims that Russia had offered France help in transporting its forces to Mali earlier in the month.

The Kremlin notes the aftermath of the Libyan revolution, which saw arms delivered by Western powers funneled to foreign extremists — a charge confirmed by US Secretary of State Hillary Clinton in her testimony to the Congress Wednesday — as an example of what may follow the conflict in Mali.

“The situation in Mali feels the consequence of events in Libya. The seizure of hostages in Algeria was a wake-up call.”

“This will be a time bomb for decades ahead,” he said.

BaNZai7’s DiSPaTCHeS FoR DaVoS…

0

DAVOS SIGN
,

ReSiLieNT DYNaMiSM

“Indeed, there is no risk-off setting for the global economy…leaders from the public and private sectors need to adopt a “risk-on” mindset to catalyzse dynamic growth.

Davos Executive Summary

 

RESILIENT DYNAMISM
.

A functioning police state needs no police.

William S. Burroughs

 

WORLD ECONOMIC FORUM: RESILIENT DYNAMISM

 

Resilient and dynamic…

“Strength through unity, Unity through faith…”

V for Vendetta

.
DAVOS 2012: EURO FASCI

 

 

We said dynamism, not Darwinism!

 

.
FINANCIAL DARWINISM

 

The Banksters are top of the chain

They’re harvest is financial pain

They reap what they sow

Our debt laden dough

This system is simply insane!

The Limerick King

 

AND THe WiNNeR iS….

Resilient and dynamic!

.
VISUAL COMBAT BANZAI7

 

.
DAVOS 419

Your rating: None

Guest Post: Do I Have To Report My Offshore Gold…?

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Via Simon Black of Sovereign Man blog,

Let’s do a little math problem today.

As you probably know, in 2010 the US government passed one of the most arrogant, destructive, poorly conceived pieces of legislation in history, now known as the Foreign Account Tax Compliance Act (FATCA).

FATCA heaps all sorts of reporting requirements on US taxpayers with foreign financial accounts. This is in ADDITION to form TDF 90-22.1, which is due to the Treasury Department each year by June 30th, and IRS form 1040 schedule B.

(Nothing says ‘government’ like passing along the same information on different forms to the same department multiple times…)

Another major provision of the law requires ALL financial institutions on the PLANET to share personal customer information with Uncle Sam.

The hubris is overwhelming. Imagine what would happen if the Chinese government passed a law requiring US banks to share customer information with Beijing. People would go nuts. But in the Land of the Free, it’s normal. Crazy.

It gets worse. FATCA was a mere 18 pages of poorly worded legislation that failed to define critical terms. For example, two terms that are used over and over again are “foreign financial institution” and “foreign financial account“.

The terms are ambiguous, to say the least. Does an account with an offshore gold depository like GoldMoney constitute a foreign financial account? Does a Swiss insurance company constitute a foreign financial institution? It’s not intuitively obvious.

Congress solved this problem in the most confusing way; they use the terms to define each other. It’s like saying, “What’s a dog? The opposite of a cat… OK, so what’s a cat? The opposite of a dog.”

Needless to say, this “who’s on first” legislation sent shockwaves through the global banking system. Many banks simply dropped US customers, erroneously believing that it would get them off the hook from having to abide by this bizarre, destructive law.

Enter the IRS.

After the law was passed in 2010, it became the responsibility of the IRS to figure out Congress’s intent in implementing FATCA. It has taken them nearly THREE YEARS to do so, and they will be releasing the final regulations next week.

So here’s the math problem: How many pages of regulations did the IRS issue? I’ll show you using the special arithmetic that only exists in government—

18 pages of law + 33 months x 1 government agency (IRS) = X

Give up?

The answer is a mind numbing 544 pages…

Unbelievable, no? Eighteen pages of law turn into 544 pages of regulation.

What’s more, in all of those 544 pages, there is not a single mention of the words, “gold”, “silver”, or “precious metals”. So there’s still quite a bit of mystery with respect to the question, “Do I have to report my offshore gold…?”

I’m still having my team go through the rules; after an initial read, though, the language of the regulation does suggest that custodial gold institutions (like GoldMoney, etc.) should be reported. Offshore safety deposit boxes (like Das Safe) do not.

Here’s the bright side of all this nonsense: now that the rules are finally settled, it’s now going to be much, much easier for US taxpayers to open foreign bank accounts.

Over the past three years, the opacity of FATCA was too risky for banks. Today, while the final rules are cumbersome, they’re at least settled. So the banks know how to operate.

I’m hearing from a number of overseas banker contacts, from Singapore to Panama to Malta, that they’re once again opening their doors to US customers. More to follow on this development.

Your rating: None

“Return = Cash + Beta + Alpha”: An Inside Look At The World’s Biggest And Most Successful “Beta” Hedge Fund

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Some time ago when we looked at the the performance of the world’s largest and best returning hedge fund, Ray Dalio’s Bridgewater (split roughly evenly between his Pure Alpha and All Weather strategies), it had some $138 billion in assets. This number subsequently rose by $4 billion to $142 billion a week ago, however one thing remained the same: on a dollar for dollar basis, it is still the best performing and largest hedge fund of the past 20 years (assuming of course, JPM’s $350 billion AUM Whale office has finally been “beached” and its positions unwound), and one which also has a remarkably low standard deviation of returns to boast. This is known to most people.

What is less known, however, is that the two funds that comprise the entity known as “Bridgewater” serve two distinct purposes: while the Pure Alpha fund is, as its name implies, a chaser of alpha, or the ‘tactical’, active return component of an investment, the All Weather fund has a simple “beta isolate and capture” premise, and seeks to generate a modestly better return than the market using a mixture of equity and bonds investments and leverage.

Ironically, as we foretold back in 2009, in the age of ZIRP, virtually every “actively managed” hedge fund would soon become not more than a massively levered beta chaser however charging an “alpha” fund’s 2 and 20 fee structure. At least Ray Dalio is honest about where the return comes from without hiding behind meaningless concepts and lugubrious econospeak drollery. Courtesy of “The All Weather Story: How Bridgewater created the All Weather investment strategy, the foundation of the “risk parity” movement” everyone else can learn that answer too.

And while we absolutely agree with Dalio that “there is a way of looking at things that overly complicates things in a desire to be overly precise and easily lose sight of the important basic ingredients that are making those things up” (they need those Econ PhDs for something), we certainly don’t agree with Bob Prince’s assessment that the entire world is merely a “machine” which can be understood, in terms of its cause-effect linkages.

While this may be true in simple two actor environments, and in theoretical, textbook markets, it is certainly not the case in a enviornment filled with irrational actors, who respond in times of crises – so vritually all market inflection points – with their feelings, instincts, phobias and gut reactions, than with anything resembling logic and reason. And especially not in times of “New Normal” central planning.

Then again, it is Prince and Dalio who are multi-billionaires and run a $125 billion hedge fund, so perhaps they are on to something…

The annotated presentation of how one half of Bridgewater’s bread and butter operates:

And the unabridged:

The All Weather Story

How Bridgewater associates created the all weather investment strategy, the foundation of the ‘risk parity’ movement

President Richard Nixon sat in the Oval Office staring into a television camera and addressed the nation: “I directed Secretary Connelly to suspend temporarily the convertibility of the dollar into gold.” After 27 years of relative monetary stability, the United States was breaking from the Bretton Woods system of fixed exchange rates that had tied the dollar’s value to gold.

Ray Dalio, fresh out of college, was then a clerk on the New York Stock Exchange. Watching Nixon’s speech in his apartment, he tried to fathom the implications. Paper money derived its value from being a claim on gold. Now those claims wouldn’t be honored. The next morning he walked on to the chaotic floor of the NYSE expecting stocks to plummet. Instead the Dow Jones Industrial Average rose almost 4% and gold shot higher in what was later dubbed the “Nixon rally.” Ray had heard Nixon’s announcement but misunderstood its implications.

This event transformed Ray’s thinking about markets. Nothing like it had ever happened to him before, so it came as a shock. He quickly realized he couldn’t trust his own experience: anyone’s lifetime is too narrow a perspective. So he began to study the cause-effect linkages at work in the dollar devaluation and subsequent market pop. He discovered the Bretton Woods breakup was one of many seemingly unique occurrences that, in truth, are more infrequent than unprecedented. A broader perspective revealed that currency devaluations had occurred many times throughout history and across countries, and were the result of the same essential dynamics playing out under different circumstances. Ray dedicated himself to understanding what he would in time call the ‘economic machine’: the timeless and universal relationships that both explain economic outcomes and repeat throughout history.

Ray is now in his 60s. He founded Bridgewater Associates four years after the Nixon speech. Reflecting back on that incident, Ray said, “that was a lesson for me. I developed a modus operandi to expect surprises. I learned not to let my experiences dominate my thinking; I could go beyond my experiences to see how the machine works.”

Ray realized he could understand the economic machine by breaking down economies and markets into their component pieces, and studying the relationships of these pieces through time. This type of thinking is central to All Weather. For instance, any market move can be broken down into a few key components. Markets move based on shifts in conditions relative to the conditions that are priced in. This is the definition of a surprise. The greater the discrepancy, the larger the surprise. That explained the Nixon rally. When countries have too much debt and their lenders won’t lend them more, they are squeezed. They, in this case the US, invariably print money to relieve the squeeze. The unexpected wave of new money cheapens its value and alleviates the pressure from tight monetary conditions sending stocks and gold higher. What Ray observed was ‘another one of those’ – a shift in conditions relative to what people had expected.

The principles behind All Weather relate to answering a deceptively straight-forward question explored by Ray with co-Chief Investment Officer Bob Prince and other early colleagues at Bridgewater – what kind of investment portfolio would you hold that would perform well across all environments, be it a devaluation or something completely different?

After decades of study Ray, Bob, Greg Jensen, Dan Bernstein and others at Bridgewater created an investment strategy structured to be indifferent to shifts in discounted economic conditions. Launched in 1996, All Weather was originally created for Ray’s trust assets. It is predicated on the notion that asset classes react in understandable ways based on the relationship of their cash flows to the economic environment. By balancing assets based on these structural characteristics the impact of economic surprises can be minimized. Market participants might be surprised by inflation shifts or a growth bust and All Weather would chug along, providing attractive, relatively stable returns. The strategy was and is passive; in other words, this was the best portfolio Ray and his close associates could build without any requirement to predict future conditions. Today the All Weather strategy and the concepts behind it are fundamentally changing how the biggest capital pools in the world manage money. What began as a series of questions has blossomed into a movement. This article tells the story of how All Weather came into being. It recounts how a series of conversations hardened into principles that are the foundation of a coherent and practical investment philosophy.

A Discovery Process

Ray founded Bridgewater in 1975 in his New York City brownstone apartment. At the time, he actively traded commodities, currencies and credit markets. His initial business was providing risk consulting to corporate clients as well as offering a daily written market commentary titled Bridgewater Daily Observations that is still produced. The competitive edge was creative, quality analysis.

Among his clients were McDonalds and one of the country’s largest chicken producers. McDonalds was about to come out with Chicken McNuggets and was concerned that chicken prices might rise, forcing them to choose between raising their menu prices or having their profit margins squeezed. They wanted to hedge but there was no viable chicken futures market. Chicken producers wouldn’t agree to sell at a fixed price because they were worried that their costs would go up and they would then take a loss on their supply contracts. After some thought, Ray went to the largest producer with an idea. A chicken is nothing more than the price of the chick (which is cheap), corn, and soymeal. The corn and soymeal prices were the volatile costs the chicken producer needed to worry about. Ray suggested combining the two into a synthetic future that would effectively hedge the producer’s exposure to price fluctuations, allowing them to quote a fixed price to McDonalds. The poultry producer closed the deal and McDonald’s introduced the McNugget in 1983.

This early work reflected a truth. Any return stream can be broken down into its component parts and analyzed more accurately by first examining the drivers of those individual parts. The price of poultry depends on the price of corn and soymeal. The price of a nominal bond can be broken down into a real yield and an inflation component. A corporate bond is a nominal bond plus a credit spread. This way of thinking laid the groundwork for constructing All Weather. If assets can be broken down into different component parts and then summed up to a whole, so too could a portfolio.

Portfolio Building Blocks

In time, Ray and Bob set their sights on managing liabilities, not merely advising on what to do with them. For any asset there is a corresponding liability and, relative to asset management, liability management appeared to be an underserved market. There was a long education process to convey the value proposition to a corporate treasurer, however. To do so, Ray, Bob and others would write a “Risk Management Plan.” These were tailored analyses that generally followed three steps; a) identify the risk neutral position for the corporation b) design a hedging program to reach that exposure and c) actively manage around that exposure, hiring Bridgewater and paying them based on performance around this neutral position. Over time this approach had Ray, Bob and others managing $700 million in corporate liabilities.

The evolution to managing assets occurred in 1987. The World Bank pension fund had been following Bridgewater‘s research. On the basis of this research and Bridgewater’s track record managing liabilities, they opened a $5 million bond account. Given the decade plus of experience managing liabilities, Bridgewater approached the asset portfolio in the same way. The bond benchmark was the risk neutral position; the active management was the value added, or alpha, gained from deviating from the benchmark. The two are completely separate.

This is an important insight. While there are thousands of investment products, there are only three moving parts in any of them. Consider buying a conventional mutual fund. The investment may be marketed as a ‘large cap growth fund.’ The reality is that the return of that product, or any product, is a function of a) the return on cash b) the excess return of a market (beta) above the cash rate and c) the ‘tilts’ or manager stock selection (alpha). The mutual fund blurs the distinction between the moving parts, which makes it hard to accurately assess the attributes of any one part or the whole. In summary:

return = cash + beta + alpha

Many people, perhaps most, don’t look at investment returns from this perspective and as a result miss a lot. The cash rate is after all controlled by a central bank, not the investor, and can move up or down significantly. In the US after peaking above 15% in the 1980s, cash rates are now zero. Stocks and bonds price relative to and in excess of cash rates. A 10-year bond yield of 2% is low relative to history but high relative to 0% cash rates. What is unusual about the recent environment is the price of cash, not the pricing of assets relative to cash.

The characteristics of betas and alphas are distinct. Betas are few in number and cheap to obtain. Alphas (i.e. a trading strategy) are unlimited and expensive. The most important difference is the expected return. Betas in aggregate and over time outperform cash. There are few ‘sure things’ in investing. That betas rise over time relative to cash is one of them. Once one strips out the return of cash and betas, alpha is a zero sum game. If you buy and I sell, only one of us can be right. The key for most investors is fixing their beta asset allocation, not trading the market well. The trick is to figure out what proportion of stocks, bonds and commodities to hold such that a static portfolio is reliable. That is the question (‘what kind of investment portfolio would you hold that would perform well across all environments”) Ray, Bob, Dan and others were trying to answer. The first step was to separate out the beta from cash and alpha.

Balancing and Risk-adjusting Assets

By this time Bridgewater had decamped from Manhattan to rural Connecticut, eventually ending up in Westport. Now that Bridgewater was managing pension assets, other pension funds began exploring Bridgewater’s capabilities. Among those for whom Bridgewater provided advice was Rusty Olson, the CIO of a large US-based consumer goods manufacturer pension plan. Rusty asked what Bridgewater thought about his plan of using long duration zero coupon bonds in the pension portfolio. Ray gave a quick answer on the spot, suggesting it was a great idea but that they should use futures to implement it so that they could create any duration they desired. Ray said he would get back to Rusty with a more fully fleshed out idea. The brainstorming happened on a Friday. Merely getting asked the question was a coup. Not that long ago Bridgewater had been a niche investment adviser and at the time it had very little money under management. Now an iconic CIO was asking their counsel. Ray, Bob, Dan and a few other Bridgewater employees at the time worked all weekend to get Rusty an answer on how to do this best.

Step one in the pension analysis was breaking down this manufacturer’s pension portfolio into the three key components described above (cash or the risk free position, beta, and alpha). The typical institutional portfolio had (and still has) roughly 60% of its dollars invested in equities and as a result almost all of its risk. The rest of the money was invested in government bonds as well as a few other small investments, which are not as volatile as the stocks. This is the type of asset allocation many investors held at the time and remains the basic advice many investors still adhere to. Rusty was an innovative thinker and had begun deviating from conventional wisdom by trying to construct a high-returning portfolio out of uncorrelated returns, while maintaining a high commitment to equities. Rusty was struggling with what to do about nominal zero coupon government bonds. He thought they had too low a return to justify a place in his portfolio and were cash intensive, yet, at the same time, he correctly feared his portfolio was vulnerable in a deflationary economic contraction. So he had begun a program to protect his portfolio using long duration treasury bonds, which used much less cash than normal bonds. He wondered what Bridgewater could add to this approach.

Bridgewater’s response documented two key ideas that would later reappear in All Weather — environmental bias and risk balancing assets. Ray, Bob and others knew that holding equities made an investor vulnerable to an economic contraction, particularly a deflationary one. The Great Depression was the classic example of this. Stocks were decimated. It was also true as Rusty suspected that nominal government bonds provided excellent protection in these environments. The goal was an asset allocation that didn’t rely on predicting when the deflationary shift would occur but would provide balance nonetheless.

The 1990 memo to Rusty put it this way, “Bonds will perform best during times of disinflationary recession, stocks will perform best during periods of … growth, and cash will be the most attractive when money is tight.” Translation: all asset classes have environmental biases. They do well in certain environments and poorly in others. As a result, owning the traditional, equity heavy portfolio is akin to taking a huge bet on stocks and, at a more fundamental level, that growth will be above expectations.

The second key idea stemmed from their work helping corporations hedge unwanted balance sheet exposures. Ray, Bob, Dan and others always thought first about risk. If the risks didn’t offset, the client would be exposed. Due to his equity holdings Rusty was exposed to the risk that growth in the economy would be less than discounted by the market. To ‘hedge’ this risk, the equities needed to be paired with another asset class that also had a positive expected return (i.e. a beta) but would rise when equities fell and do so in a roughly similar magnitude to the decline in the stocks. The Bridgewater memo agreed that Rusty should hedge this risk with long duration bonds that would have roughly the same risk as his stocks. Quoting from the study: “low-risk/low-return assets can be converted into high-risk/high-return assets.” Translation: when viewed in terms of return per unit of risk, all assets are more or less the same. Investing in bonds, when risk-adjusted to stock-like risk, didn’t require an investor to sacrifice return in the service of diversification. This made sense. Investors should basically be compensated in proportion to the risk they take on: the more risk, the higher the reward.

As a result of this work, Ray wrote Rusty, “I think your approach to managing the overall portfolio makes sense. In fact, I would go so far as to say that I think it makes more sense than any strategy I have seen employed by any other plan sponsor.” The long duration bonds, or futures equivalents, would make the portfolio roughly balanced to surprises in economic growth while not giving up return. Bridgewater began managing Rusty’s bond portfolio and also overlaid their own alpha (this portfolio became their first ‘alpha overlay’ account).

Balancing Growth and Inflation

Over time these discrete discoveries – breaking a portfolio into its parts, recognizing environmental biases, risk adjusting asset classes — began to harden into principles, concepts that could be applied over and over again. Running these portfolios in real time, particularly through economic shocks ranging from stock market crashes to banking crises to emerging market blow ups reinforced a confidence in the principles. Yet, there were a few additional insights that would come before All Weather would grow into a mature concept. A key step was framing growth and inflation as the environmental drivers that mattered and mapping asset classes to these environments.

Ray, Bob and their other close associates knew stocks and bonds could offset each other in growth shocks, such as they had mapped out for Rusty. They also knew there were other environments that hurt both stocks and bonds, such as rising inflation. That was obvious because they lived through these shifts. For a 1970s style environment it was much better to hold commodities than it was to hold stocks and nominal bonds. This notion was rattling around in conversations and became fully formed for Bob in a simple experiment.

Since the invention of the PC early Bridgewater employees had utilized technology to collect and chart data and process decision rules. They called these rules ‘indicators.’ These were the ‘timeless and universal’ linkages Ray had set out to understand in the 1970s. A PC was a big step up in efficiency from a slide rule or an HP hand-held calculator and graphs plotted by hand with colored pencils, which was what they used early on. Bob was fiddling around with a new computer program, Microsoft Excel. Microsoft had released the first windows based version of it in 1987. With these tools Bob began playing around to see how shifting asset weights would impact portfolio returns. He found that the best performing portfolio was ‘balanced’ to inflation surprises. This made some sense coming after the inflationary 1970s and the dis-inflationary 1980s. It also held true for more extreme shocks, like the 1920s German hyperinflation or the US Depression. Bob shared his discovery with Ray. “I showed it to Ray and he goes, ‘that makes sense,’” Bob recalled years later. “Then he goes, ‘But it really should go beyond that, it should really also be balanced to growth.’”

This was classic Bridgewater. Though the ‘data’ indicated one thing (to balance assets via inflation sensitivity) common sense suggested another. The message – don’t blindly follow the data. Ray proceeded to sketch out the four boxes diagram below as a way of describing the range of economic environments any investor has faced in the past or might face in the future. The key was to put equal risk on each scenario to achieve balance. Investors are always discounting future conditions and they have equal odds of being right about any one scenario.

This diagram tied key principles together and became a template for All Weather. Much as a portfolio can be boiled down to three key drivers, economic scenarios can be broken down to four. There are all sorts of surprises in markets, but the general pattern of surprises follows this framework, because the value of any investment is primarily determined by the volume of economic activity (growth) and its pricing (inflation). Surprises impact markets due to changes in one or both of those factors. Think about any stress scenario and it ends up putting a portfolio in one or two of these sectors unexpectedly. The 1970’s oil shocks, the disinflation of the 1980’s or the growth disappointments post 2000 were all shifts in the environment relative to expectations. This framework captured them all. More importantly, it captured future, yet unknown surprises. There were many economic surprises after Bridgewater started running All Weather, and they were different from the surprises that preceded the strategy but the strategy weathered them all. The framework is built for surprises in general, not specific surprises, the very issue Ray had been wrestling with at the outset.

Initially the four box framework was used to explain alpha diversification with prospective clients. The framework explained the concept in such an intuitive and clear way that it became the starting point of their conversations. To be sure, at this time the focus of the key Bridgewater personnel was on alpha, not beta. To do so, Ray, Bob and Dan were obsessed with identifying and articulating timeless and universal tactical decision-making rules across most liquid financial markets. The tactical strategy that resulted from this work, Pure Alpha, was launched in 1991, years before All Weather came into being.

The final ingredient: inflation-linked bonds

If Bridgewater is the pioneer of risk parity, it is also true the firm played a critical role in the acceptance of inflation-linked bonds in institutional portfolios. Inflation-linked bonds play an important role in All Weather. The concept of a security whose principal value is tied to inflation dates to at least the 18th century but in the early 1990s inflation-linked bonds were not playing a significant role in institutional portfolios. Like the other discoveries along the way, this one came out of a conversation, or a series of them. A US foundation came to Bridgewater with a question: how could they consistently achieve a 5% real return? By law the foundation had to spend 5% of its money every year, so for it to keep operating in perpetuity it had to generate a 5% real return.

Going back to the building blocks of a given portfolio, the client’s “risk-free position” was no longer cash, but rather a portfolio that provided a real return. Inflation-linked bonds, bonds that pay out some real return plus actual inflation, would ‘guarantee’ this 5% hurdle, as long as one could find bonds paying 5% real coupons. The main problem, however, was that there weren’t any of these bonds in the US at the time. They were issued widely in the UK, Australia, Canada and a few other countries. As currency and bond managers, Ray, Bob and Dan knew how to hedge a bond portfolio back to dollars, eliminating the currency impact. The three of them sought to construct a global inflation-linked bond portfolio and hedge it back to the US dollar as a solution for the endowment. At the time, global real yields were around 4% so a little bit of leverage had to be applied to the inflation linked bonds to reach the endowment’s target.

Through their work for the foundation it became clear inflation-linked bonds were a viable, underutilized asset class relative to their structural correlation benefits. Inflation-linked bonds do well in environments of rising inflation, whereas stocks and nominal government bonds do not. As a result, the bonds filled a diversification gap that existed (and continues to exist) in the conventional portfolio. Most investors do not hold any assets that perform well when inflation surprises to the upside outside of commodities, which tend to comprise a tiny fraction of their overall portfolio. From the environmental perspective Bridgewater established, inflation-linked bonds helped balance out both boxes and other asset classes in a way no other asset class could (inflation-linked bonds are also negatively correlated to commodities relative to growth, an added benefit). Unsurprisingly, when the US Treasury decided to issue inflation-linked bonds, officials came to Bridgewater to seek advice on how to structure the securities. Bridgewater’s recommendations in 1997 led to TIPS being designed as they now are.
25 years in the making:

The All Weather Strategy

The fully formed All Weather emerged in 1996 as Ray, Bob and by this point the third CIO, Greg Jensen, who had joined Bridgewater out of college, sought to distill decades of learning into a single portfolio. The impetus was Ray’s desire to put together a family trust and create an asset allocation mix that he believed would prove reliable long after he was gone. The accumulation and compounding of the investment principles Bridgewater had discovered, while hedging McNuggets, helping Rusty balance his portfolio, or managing inflation-linked bonds, came together into a real portfolio. The ultimate asset allocation mapped asset classes onto the environmental boxes framework, as shown in the diagram below.

Bridgewater had learned to map asset classes to the environments through study. They also knew that all the asset classes in the boxes would rise over time. This is how a capitalist system works. A central bank creates money, and then those who have good uses for the money borrow it and use it to achieve a higher return. These securities by and large come in two forms: equity (ownership) and bonds (loans). As a result, the boxes don’t offset each other entirely; the net return of the assets in aggregate are positive over time relative to cash. The environmental exposures cancel each other out, which leaves just the risk premium to collect.

Ray described creating the portfolio “like inventing a plane that’s never flown before.” It looked right, but would it fly? He started running a pilot with his assets, and it was someone’s part-time job to rebalance the portfolio from time to time. The portfolio flew the way Bridgewater expected, but it remained purely for Ray’s trusts. All Weather was never envisaged as a product. It was profound enough that no one was doing it but at the same time so straightforward that anyone could seemingly do it for themselves. While US equities were in the early stages of the tech bubble, Ray and others began propounding the concepts of balance, initially to rather indifferent interest.

The crash of 2000 changed that. With the bursting of the bubble came the realization that equities were by no means a “sure thing.” The tech bubble implosion shifted the mindset of the average investor, reminiscent of the disruptions of Bretton Woods, the oil shocks and the 1987 stock market crash. Many money managers began shifting towards alpha (tactical bets) as a way to cope with what they perceived as a now-unstable stock market.

Early Investors

Around that time, Bob began talking with Britt Harris, then CIO of a major corporate pension fund, which was a client of Bridgewater’s. Bob and Britt knew each other from coaching their children together and their children’s’ common nursery school. Britt called Bob up one Sunday and asked about inflation-linked bonds and how they would fit into an investment portfolio. Bob told Britt, “Let me tell you what I would do if I were in your shoes.” The portfolio he described and they built for Britt’s pension plan — as you might expect — was All Weather. It was so unorthodox that Britt insisted on a massive due diligence process, which further helped codify the principles underlying the All Weather approach. As Bob recounts, “Britt said, ’when the regulators come and ask me the question, I want to be able to pull the book off the shelf and show them all the work we did to show that this makes sense.’” The pension fund started with a $200mm allocation.

The second large client to adopt the All Weather approach was a major automobile company. They had just issued pension obligation bonds because they were severely underfunded in the aftermath of the 2001 stock market crash. The CIO wanted to manage this “new money” from the bond issuance in a “new way.” The CIO sent out perhaps 30 letters to the top institutional money managers in the world and ended up hiring five to manage his “new money”; Bridgewater was one of them.

Ray, Bob and Greg advised this company to build a portfolio based on principles the CIO could use for the entire fund: find the best asset allocation, find the best alpha, and then combine the two in such a way so as to reflect your relative confidence in each. The eventual total portfolio ended up being a roughly 70/30 split between beta and alpha (All Weather and Pure Alpha, Bridgewater’s actively-traded portfolio). The novelty was the All Weather component. It was slowly becoming apparent that some of their clients were recognizing the benefits of environmental balance and diversification and would be willing to hire Bridgewater to implement this for them.

To be sure, there was still resistance to the All Weather concepts. Peer risk dissuaded some investors for fear that they wouldn’t track their benchmark or peer group. The idea of leverage also raised questions. Some were wholly unfamiliar with the concepts of financial engineering and therefore were initially uncomfortable with derivative instruments (e.g., futures and swaps). And last, there was a big question over where exactly All Weather would fit in or who would own the profit and loss. However, after nearly a decade of poor performance and the credit crises of 2008, investors were hungry for an alternative. A clever consultant adopted the term “Risk Parity” and created an asset allocation bucket thereby opening the floodgates to strategies that one way or another seek to balance risks in a portfolio.

Gradually objections surrounding All Weather eased. As investors grew accustomed to looking at leverage in a less black-and-white way — “no leverage is good and any leverage is bad” — many have come to understand that a moderately-levered, highly-diversified portfolio is less risky than an unleveraged, un-diversified portfolio. Leverage is an implementation tool. If you can’t predict the future with much certainty and you don’t know which particular economic conditions will unfold, then it seems reasonable to hold a mix of assets that can perform well across all different types of economic environments. Leverage helps make the impact of the asset classes similar.2

The Elegant Solution

Fast forward to today. There is no limit to how the All Weather principles of balance can be applied and over time could perhaps contribute to a more stable financial system. One of the largest Canadian pension plans adopted All Weather as the benchmark for their entire plan. Other organizations have completely revamped their structure into alpha and beta teams. Some are introducing these concepts into defined contribution plans as an investment choice. A recent survey indicated most institutional investors are familiar with the concept and 25% are using it in their portfolio, though that of course means the vast majority of investors aren’t yet using what is effectively new technology.

All Weather grew out of Bridgewater’s effort to make sense of the world, to hold the portfolio today that will do reasonably well 20 years from now even if no one can predict what form of growth and inflation will prevail. When investing over the long run, all you can have confidence in is that (1) holding assets should provide a return above cash, and (2) asset volatility will be largely driven by how economic conditions unfold relative to current expectations (as well as how these expectations change). That’s it. Anything else (asset class returns, correlations, or even precise volatilities) is an attempt to predict the future. In essence, All Weather can be sketched out on a napkin. It is as simple as holding four different portfolios each with the same risk, each of which does well in a particular environment: when (1) inflation rises, (2) inflation falls, (3) growth rises, and (4) growth falls relative to expectations.

Overconfidence often pushes people to tinker with things they do not deeply understand, leading them to over-complicate, over-engineer, and over-optimize. All Weather is built very intentionally to not be that way. With the All Weather approach to investing, Bridgewater instead accepts the fact that they don’t know what the future holds, and thus choose to invest in balance for the long-run. Often Bridgewater people are asked at a cocktail party or a family gathering what to invest in. They don’t delve into the active alpha portfolio. That wouldn’t be useful anyway — the portfolio moves around. What the average person needs is a good, reliable asset allocation they can hold for the long-run. Bridgewater’s answer is All Weather, the result of three decades of learning how to invest in the face of uncertainty. Ray’s trust assets remain invested in All Weather.

1. As an example, if you invest $10 in the S&P 500 and $10 in US bonds, the portfolio risk is dominated by the S&P because it is much riskier than the bonds. If instead you invest $5 in the S&P and $15 in 10 year bonds the portfolio is much more balanced, though with a lower return. Invest $5 and $15 in the manner described and add a bit of leverage and the portfolio has the same return as the stocks but less risk.

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What President Obama Said Matters; Just Ask Krauthammer

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How many of us have heard the old adage that it’s actions, not words, that matter. I concur with that assessment generally. However, when it comes to presidential politics, it doesn’t hold as fast and tight. The bully pulpit is a powerful tool to convey political agenda, ideology and action in any presidential term, and while a president isn’t a king (sorry teaBirchers, he’s not) who can enact whatever policy he likes, he certainly can explain and promote his beliefs to millions of Americans at any given time.

Obama over his first four years has frustrated his liberal base because he was just as likely to mention Ronald Reagan in glowing terms as much as he would Teddy Roosevelt or FDR. And he never laid out a consistent progressive agenda to the American people during his first years in the White House. (No matter what FOX News said.) But on FOX News shortly after the inauguration, Charles Krauthammer was the only one to come on after the speech and praise it honestly. Most conservatives complained that the president was being mean to Republicans yet again, but not Charles:

I thought it was an amazing speech – historically very important,” Krauthammer said. ”Not memorable – there’s not a line here that will ever be repeated, but I think very important historically because this was really Obama unbound. And I think what’s most interesting is that Obama basically is declaring the end of Reaganism in this speech.

I was pretty astonished by his response when I watched this, because for the most part, Charles has been one of the leaders of the Sour Patch Kids who live off being deficit scolds. Obama’s victory is forcing many conservatives to come to grips with certain realities (maybe America isn’t a center right country?) and Charles is trying to understand what it means for Republicans in the future. I may disagree with his notion of what ‘Big Government’ is and means, but his analysis on the whole is fairly accurate.

Funny, how many pundits that criticized Obama for not extending a loving hand to Republicans never mentioned George Bush’s second inauguration speech. It dealt almost entirely with his bombastic and aggressive foreign policy beliefs.

We are led, by events and common sense, to one conclusion: The survival of liberty in our land increasingly depends on the success of liberty in other lands. The best hope for peace in our world is the expansion of freedom in all the world.

Bush did promote his “ownership society” theories, but freedom was the central tenant of his speech after the 9/11 tragedy. He also talked a little about equality, but shrouded it in Republican orthodoxy. Unfortunately for us, his beliefs helped destroy the global financial economies. There was nary a word about Democrats and Republicans working together to cure the ills of our land. I guess he’s been deleted from conscious thought by the Villagers in which we are to compare past and future presidents.

In Obama’s second inauguration–he surprised many liberals by making the case for some of the strongest beliefs the left holds dear like equality; including marriage, voter rights, climate change and exalting the safety net programs like Social Security, Medicare and Medicaid.

Our journey is not complete until our wives, our mothers, and daughters can earn a living equal to their efforts. Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law–for if we are truly created equal, then surely the love we commit to one another must be equal as well. Our journey is not complete until no citizen is forced to wait for hours to exercise the right to vote. Our journey is not complete until we find a better way to welcome the striving, hopeful immigrants who still see America as a land of opportunity; until bright young students and engineers are enlisted in our workforce rather than expelled from our country.

—-

We do not believe that in this country freedom is reserved for the lucky, or happiness for the few. We recognize that no matter how responsibly we live our lives, any one of us at any time may face a job loss, or a sudden illness, or a home swept away in a terrible storm. The commitments we make to each other through Medicare and Medicaid and Social Security, these things do not sap our initiative, they strengthen us. (Applause.) They do not make us a nation of takers; they free us to take the risks that make this country great. (Applause.)

In your face Roger Ailes, Mitt Romney, Rupert Murdoch, Karl Rove and the entire Conservative movment. So Obama is off to a good start at least in terms of rhetoric. And yes, rhetoric from the top is an important ingredient for baking a very progressive pie. He is the leader of the Democratic party. However, if Obama does not continue to use the bully pulpit promoting Liberal ideas and falls back into being a deficit scold then all will be lost.

At least for now he’s on the right path.

Krauthammer: Remember, he once said that Ronald Reagan was historically consequential in a way that Bill Clinton was not. And what Obama meant is that Obama had changed the ideological course of the country. In 1981, in his inaugural address within two minutes, Reagan had declared that ’government is not the solution, government is the problem.’ Today’s inaugural address was a rebuke to that entire idea.”

“This speech today was an ode to big government,” he continued. ”It was a hymn to big government. In his refrain, the three ‘we the peoples,’ number one I’m going to defend what liberalism achieved in the 20th century, where he mentioned Social Security, Medicare and Medicaid.

Said, ‘I’m not going to let any of that be chipped away.’ And then second, he said the vision for the future is climate change and green energy, the new expansion of liberalism in the new century. And then the third element was his expansion of civil rights, where he talked about immigrants and gays, and he even shoe-horned gun rights under the rubric of security. He outlined the liberal agenda, the big government agenda in the future.”

The High Price Of Understated Inflation

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The reliable data which policymakers and the public need if effective solutions are to be found is not available. As Tullett Prebon’s Tim Morgan notes, economic data has been subjected to incremental distortion; Data distortion can be divided into two categories. Economic data has been undermined by decades of methodological change which have distorted the statistics to the point where no really accurate data is available for the critical metrics of inflation, growth, output, unemployment or debt. Fiscal data, meanwhile, obscures the true scale of government obligations. While he does not believe that the debauching of US official data is the result of any grand conspiracy to mislead the American people; he does see it as an incremental process which has taken place over more than four decades. From ‘owner equivalent rent” to ‘hedonics’, few series have been distorted more than published numbers for inflation, and few if any economic measures are of comparable importance; and the ramifications of understated inflation are huge.

Via Dr. Tim Morgan, Tullet Prebon, the high price of understated inflation

Though the undermining of data quality has been widespread, few series have been distorted more than published numbers for inflation, and few if any economic measures are of comparable importance. In the United States, CPI-U inflation reported at 3.2% in 2011 probably masked real price escalation which was very much higher than that. This is hugely significant, because inflation is central to calculations of economic growth, wages, pensions and benefits. Moreover, understated inflation undermines calculations of the ‘real’ cost of credit as represented by interest rates and bond yields, a factor which, as we shall see, may have played a very significant role in the escalation of indebtedness during the credit super-cycle.

British inflation data, too, seems pretty optimistic Between 2001 and 2011, average weekly wages increased by 38%, which ought to have been a more than adequate rise when set against official CPI (consumer price index) inflation of 27% over the same period (fig. 4.1). But the reported rate of overall inflation between those years seems strangely at odds with dramatic increases in the costs of essentials such as petrol (+59%), water charges (+63%), electricity (+97%) and gas (+168%).

Those who question the accuracy of official inflation measures in Britain have nothing much more upon which to base their suspicions than intuition, experience and the known escalation of the prices of essentials. In the United States, this situation is quite different, and far greater data transparency has enabled analysts to reverse out the methodological changes of the last three decades. The scale of the distortions which have been identified is truly shocking.

The biggest single undermining of official inflation data results from the application of “hedonic adjustment”. The aim of hedonic adjustment is to capture improvements in product quality. The introduction of, say, a better quality screen might lead the Bureau of Labor Statistics (BLS) to deem the price of a television to have fallen even though the price ticket in the shop has remained the same, or has risen. The improvement in the quality of the product is equivalent, BLS statisticians argue, to a reduction in price, because the customer is getting more for his or her money.

A big problem with hedonic adjustment is that it breaks the link between inflation indices and the actual (in-the-shop) prices of the measured goods. Another is that hedonic adjustment is subjective, and seems to incorporate only improvements in product quality, not offsetting deteriorations. A new telephone might, for example, offer improved functionality (a hedonic positive), but it might also have a shorter life (a hedonic negative) and, critics claim, the official statisticians are all too likely to incorporate the former whilst ignoring the latter. The failure to incorporate hedonic negatives may be particularly pertinent where home-produced goods are replaced by imports, a process which has been ongoing for more than two decades. A Chinese-made airbrush might be a great deal cheaper than one made in America, but is the lower quality of the imported item factored in to the equation?

A second area of adjustment to inflation concerns ‘substitution’. If the price of steak rises appreciably, ‘substitution’ assumes that the customer will purchase, say, chicken instead. As with hedonic adjustment, the use of substitution not only breaks the link with actual prices (a process exacerbated by ‘geometric weighting’), but it also, as Chris Martenson explains, means that CPI has ceased to measure the cost of living but quantifies “the cost of survival” instead.

Geometric weighting, too, plays a significant role in the distortion of American inflation data. In any case, some of the weightings used in the official indices look strange, one example being medical care, which accounted for 16% of consumer spending in 2011 but is weighted at just 7.1% in the CPI-U.

Since the process of adjustment began in the early 1980s, the officially-reported CPI-U number has diverged ever further from the underlying figure calculated on the traditional methodology. Fig. 4.2 gives an approximate idea of quite how distorted US inflation data seems to have become over three decades. Instead of the 3.2% number reported for 2011, for example real inflation was probably at least 7%. Worse still, the official numbers probably understate the sharp pick-up in inflation which America has been experiencing. A realistic appreciation of the inflationary threat would be almost certain to have forced very significant changes in monetary policy.

Taken in aggregate, the extent to which the loss of dollar purchasing power has been understated is almost certainly enormous. Between 1985 and 2011, official data shows that the dollar lost 53% of its value, but the decrease in purchasing power might stand at more like 75% on the basis of underlying data stripped of hedonics, substitution and geometric weighting.

The ramifications of understated inflation are huge. First, of course, and since pay deals often relate to reported CPI, wage rises for millions of Americans have been much smaller than they otherwise would have been. Small wonder, then, that millions of Americans feel much poorer than official figures tell them is the case. By the same token, those Americans in receipt of index-related pensions and benefits, too, have seen the real value of their incomes decline as a result of the severe (and cumulative) understatement of inflation.

This process, of course, has saved the government vast sums in benefit payments. Rebasing payments for the understatement of inflation since the early 1980s suggests that the Social Security system alone would have imploded many years ago had payments matched underlying rather than reported inflation. In other words, the use of ‘real’ inflation data would have overwhelmed the federal budget completely or, conversely, might have forced government to come clean on what levels of welfare spending really can be afforded.

Another implication of distorted inflation, an implication that may have played a hugely important role in the creation of America’s debt bubble, is that real interest rates may have been negative ever since the late 1990s (fig. 4.3). Taking 2003 as an example, average nominal bond rates12 of 4.0% equated to a real rate of 1.7% after the deduction of official CPI-U inflation (2.3%), but were almost certainly heavily negative in real terms if adjustment is made on the basis of underlying inflation instead.

Logically, it makes perfect sense to borrow if the cost of borrowing is lower than the rate of inflation. Whilst most Americans may not have been aware of the way in which inflation numbers had been subjected to incremental distortion, their everyday experience may very well have led them to act on an intuitive understanding that borrowing was cheap. We believe that distorted inflation data may, together with irresponsible interest rate policies and woefully lax regulation, have been a major contributor to the reckless wave of borrowing which so distorted the US economy in the decade prior to the financial crisis.

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A Year After Declaring War On The Banks

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Wolf Richter  www.testosteronepit.com  www.amazon.com/author/wolfrichter

On January 22, 2012, French presidential candidate François Hollande shook up the banks: “It has no name, no face, no party, it will never be candidate, it will therefore never be elected, yet it governs: that enemy is the world of finance,” he said. It “freed itself from all rules” and “took control of the economy, of society, and even our lives.” He’d fight it, he said, and promised some tough reforms.

But as the private sector in France sank deeper into an economic and fiscal quagmire, his words, designed to endear him to the left wing of his Socialist Party, were swept under the rug. And you’d think that since becoming President of France, he has been tutored by JPMorgan Chase CEO Jamie Dimon.

A year later, Dimon had some choice words himself, while at the World Economic Forum in Davos, Switzerland, where bankers, business leaders, politicians, and whoever was able to get in were hobnobbing for the better of the world.

Dimon lashed out at regulators and their feeble, slow, and confused efforts to rein in the banking industry so that it wouldn’t shove the world into another crisis. They were “trying to do too much, too fast,” he said. He defended inscrutable megabanks with their meaningless financial statements. “Businesses can be opaque,” he said. “They’re complex.” A word that in a financial crisis excuses everything, even massive bailouts that will haunt generations to come. “You don’t know how aircraft engines work, either,” he mollified us, based on the logic that we still get on a plane and fly across the Pacific.

And so the CEO of America’s largest TBTF bank, recipient of the Fed’s bailout trillions, praised the Fed because “they saved the system.” Indeed, they not only saved the system that had shoved the world into the financial crisis, but they also bailed out and enriched those who were, and still are, integral part of it–who now, according to Dallas Fed President Richard Fisher, “believe themselves to be exempt from the processes of bankruptcy and creative destruction” [for more on Fisher’s feisty fight against TBTF, read…. How Big Is ”BIG?”].

This is the world Hollande declared war on, back in the day. But now, France is sinking into a new crisis, and this time it’s the already diminutive private sector that is gasping for air and shedding jobs–and moving overseas, along with the rich and not-so-rich for whom the fiscal and rhetorical climate has become too hostile. 

Not a day passes without another confirmation or a new indication. Today, the statistical agency Insee released its monthly Business Climate Index, which, after a soupçon of an uptick, has deteriorated again in the categories of Industry, Wholesale, Construction, and Retail. Only Service saw an improvement. The index, at 86.75, is down from 87.02 in December, and below where it was in October 2009, during the financial crisis.

Given this scenario, what happened to Hollande’s “enemy” and the reforms to rein it in? It’s not that he didn’t try–though there simply isn’t much appetite around the world for confronting the banks. For example, even the highly anticipated Basle III liquidity rules that were supposed to make global banks more stable and another financial meltdown less likely, well… A couple of weeks ago, after years of negotiations and intensive lobbying by the banks, the rules were finalized. In watered-down form. And implementation was delayed until 2019. A huge win for the banks.

Nevertheless, Hollande’s vow to separate the banks’ retail operations from their speculative activities coagulated into a proposal for a law that was presented to parliament last December. The government prided itself that it was the first in the EU to put banking reform on the table. Four years after the financial crisis. As Dimon said: “trying to do too much, too fast.” The proposal, of course, came with such huge concession to the banks that effectively not much will change.

And his vow to impose a tax on financial transactions? It has also turned into a proposal, and the EU just issued its blessing for the tax. The 11 countries, including France and Germany, that are considering such a tax are now free to impose it. Against a wall of opposition from the banks. Nothing will happen in Germany before the election later this year. But in France, which is dying for additional revenues, the tax might pick up momentum.

These days, tangled up in a real war in Mali, Hollande no longer declares war on the financial world. In fact, he already has the first taxpayer-funded bank bailouts under his belt, including the €7 billion bailout of Banque PSA Finance. He’d “saved the system,” Dimon would say, because when push comes to shove, citizens and taxpayers, and their kids, are the ones who pay, not bank investors. And it doesn’t matter who is president.

France’s economic foundations are cracking. Unemployment is rising incessantly. The private sector is comatose. Car sales sank 13.9% in 2012, from a lousy 2011; sales by its native automakers plunged even more. Now home sales are grinding to a halt. And the finger-pointing has already started. Read….  The Next Shoe To Drop In France.

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Guest Post: The Hipster Techie Mental Map

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Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Washington D.C. is not even on the Hipster Techie mental map.

We all have inner maps that assign awareness, priority and importance to geographic features. For those who work inside the Beltway, Washington D.C. dominates their mental map of the world. Residents of Manhattan famously regard it as the center of the financial, art, fashion, etc. world.
 

In the hipster techie mental map, Washington D.C. doesn’t exist, and New York has a small tech innovation footprint. In this world view, politics, finance and fashion are not what changes the world for the better; only tech does that.
 

Everyone wants to defend their city as important, if not the center of the universe, but the reality is that people who want to “make it” gravitate to the capital of their interest, be it Nashville, New York City, Hollywood, San Francisco or a regional magnet-city.
 

The typical hipster techie works for a start-up or fast-growing company in the social media / e-commerce / marketing mobile/web apps/software space. While these firms can be found in many cities, a great many are located in San Francisco and the S.F. Bay Area (Silicon Valley, etc.) for a variety of reasons, including a culture that celebrates innovation and understands that failure and success are two aspects of the same dynamic.
 

Having a start-up crash and burn is a disaster in most places; in the Bay Area, it is generally regarded as “getting your sea legs.”
 

Three large research universities–two of the premiere public universities, University of California, Berkeley (“Cal”) and University of California, San Francisco (UCSF) and one of the premiere private universities, Stanford– act as incubators of start-ups which have access to seed money from a high concentration of venture capital. Two national labs provide government support of research: Lawrence Berkeley National Laboratory and Lawrence Livermore National Laboratory.
 

These elements spawn waves of newcomers and start-ups, most of which eventually fail or are bought up by established tech firms.
 

Many locales around the world have attempted to recreate the “magic” of Silicon Valley; the recipe is not that easy to duplicate. Many feel the Valley has lost its edge; as global competition increases, perhaps that can be said of every established innovation center.
 

If you’ve been offered a job in S.F. with a mobile apps start-up, here are 25 Things I wish I knew before moving to San Francisco by Jason Evanish (via Maoxian).
 

Here is one approximation of the hipster techie mental map:
 

Notes:

SFO: San Francisco International Airport

JFK: John F. Kennedy International Airport

Page Mill Road: home to many start-ups and Stanford Research Park
Not to be confused with Sand Hill Road, the concentration of venture capital (VC) firms (a.k.a. vulture capital)

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Mehdi’s Morning Memo: Warsi’s War On The Islamophobes

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The ten things you need to know on Thursday 24th January 2013…

1) WARSI’S WAR ON THE ISLAMOPHOBES

She may have been demoted from the Cabinet but Baroness Warsi still doesn’t pull any punches. Tonight, she’ll take aim at “certain sections” of Britain’s Islamophobia-fuelling media in a speech which will also endorse Lord Justice Leveson’s conclusions about anti-Muslim prejudice in the press.

From the Huffington Post:

“In a speech in London this evening, the minister for faith and communities and senior Foreign Office minister will say there is an ‘underlying, unfounded mistrust’ among many Britons towards Muslims as well as a ‘misinformed suspicion of people who follow Islam’.

“Warsi will make the comments at a dinner held by Mama, a new government-backed group dedicated to measuring and monitoring anti-Muslim attacks.

“… ‘Sadly, much of this negative narrative is being perpetuated by certain sections of the media,’ she will say.

‘”Lord Justice Leveson’s report event revealed journalists were encouraged to make up stories about Muslims. And concluded that the unbalanced reporting of ethnic minorities was endemic.’

You’ve got to admire her guts. The former Tory chairman’s speech comes almost two years to the day since her now-notorious ‘dinner-table test’ speech in which she argued that prejudice against Muslims had become socially acceptable in the UK – at the time, she was denounced by right-wing columnists while Downing Street sources distanced themselves from the baroness, claiming she’d not cleared the speech with the PM.

Let’s see how Dave responds this time round…

2) TIME FOR PLAN B, GIDEON

Even the chancellor’s former bezzy mates think he’s got it wrong on austerity. Remember the IMF? Yesterday, they downgraded their growth forecasts for this year and next – ahead of tomorrow’s fourth-quarter GDP figures which are expected to be pretty bad.

This morning, their chief economist did his best impression of Ed Balls on the Today programme – from the BBC:

“The IMF chief economist has told the BBC that Chancellor George Osborne should consider toning down austerity in his March budget.

‘We think this would be a good time to take stock,’ said Olivier Blanchard, speaking to Radio 4’s Today programme.”

Are you listening, Gideon?

3) THE MORNING AFTER

The prime minister may have won the support of his backbenchers, getting cheered and applauded as he arrives in the Commons chamber for PMQs yesterday after his announcement of an in-out referendum (in, er, 2017…), and he may have even pleased big business (a letter to The Times signed by 56 industry and City leaders says his promise of a negotiation followed by a referendum is “good for business and good for jobs in Britain”) but not everyone’s pleased with his brazen sop to the eurosceptics. I’m not talking about the French or the Germans – I’m referring here to the Yanks and Dave’s BFF, Barry.

As my colleague Ned Simons reports:

“The United States has repeated its warning that the United Kingdom must not leave the European Union, following David Cameron’s announcement he wants to hold a referendum.

“President Obama’s press secretary Jay Carney said on Wednesday the White House believed the UK was ‘stronger’ as a member of the EU.

“‘We welcome the prime minister’s call for Britain to remain in the EU and to retain a leading role in Europe’s institutions,’ he said.

“‘And as the President told the prime minister when they spoke last week, the United States values a strong United Kingdom and a strong European Union.'”

Who does Cameron want to impress more? Barack Obama or Daniel Hannan? His behaviour over the next couple of years will tell us the answer.

On a related note, Europe minister David Lidington told BBC2’s Newsnight last night that the next Tory election manifesto will outline exactly how his party would try to renegotiate new and looser ties with the EU.

4) ED’S GAMBLE

In one day Cameron appeared to unite his own party behind him and cause utter confusion in Labour ranks. To the utter delight of Tory backbenchers Ed Milband appeared to rule out holding an in/out referendum during prime minister’s questions. Only for other members of his front bench to then walk back the comments later on in the day.

John Denham told the Daily Echo there had been “a bit of over-interpretation” of Miliband’s comments. He said: “We do not absolutely rule it out in the future, we do not know what issues will come up in the future. And shadow foreign secretary Douglas Alexander said the party would “never said never” on the issue. Perhaps we can have a referendum on whether Labour should support a referendum.

5) THE DRONE PRESIDENT

Dave’s mate Barry’s got his own problems to deal with. Like, y’know, accusations of war crimes. Bit awkward when you’re a Nobel Peace Prize winner.

From the Guardian:

“A United Nations investigation into targeted killings will examine drone strikes in Afghanistan, Pakistan, Yemen and Somalia, according to the British lawyer heading the inquiry.

“Ben Emmerson QC, a UN special rapporteur, will reveal the full scope of his review which will include checks on military use of unmanned aerial vehicles (UAVs) in UK operations in Afghanistan, US strikes in Pakistan, as well as in the Sahel region of Africa where the conflict in Mali has erupted…

“The inquiry will report to the UN general assembly in New York this autumn… Emmerson has previously suggested some drone attacks – particularly those known as ‘double tap’ strikes where rescuers going to the aid of a first blast have become victims of a follow-up strike – could possibly constitute a ‘war crime’.”

Oh, Dubya, come back. All is forgiven. (Not.)

BECAUSE YOU’VE READ THIS FAR…

Watch this video of what happens when tourists try and mess with the Queen’s Guard at Windsor Castle.

6) SNP BLUES

Talking of referendums (or is that referenda?), the Times reports:

“Alex Salmond is facing a devastating defeat in next year’s Scottish independence referendum, according to a new opinion survey.

“The survey of more than 1,200 Scots shows that support for independence north of the Border has plummeted to its lowest level since devolution in 1999 – and the decline has gained pace since Mr Salmond’s Nationalist administration came to power in Holyrood in 2007.

“Backing for Scotland leaving the UK now sits at just 23 per cent, a drop of nine points in a year. The annual Scottish Social Attitudes survey shows that Scots are losing any appetite they had for separation, with less than half now believing independence would give their country a stronger voice in the world.”

7) ‘NOT FIT FOR PURPOSE’

From the Mirror:

“A backlog of 16,000 immigration cases dating back up to a decade has been uncovered by watchdogs.

“Around 14,000 people are waiting for the UK Border Agency to consider appeals against decisions to kick them out – with the list growing by 700 a month.”

8) HATTY, DOLLY AND BRIAN

Brian Leveson’s report into media ethics and practises is still dividing and provoking politicians.

From the Guardian:

“Harriet Harman, the deputy Labour leader, has said government proposals to create a royal charter for a new press watchdog are akin to Dolly the sheep, the first animal to be cloned from a cell.

“Speaking at the Oxford Media Convention on Wednesday, Harman also said Labour was not ruling out agreeing with the government’s plan to introduce a royal charter for the newspaper regulator in conjunction with a statute to ensure the charter cannot be tweaked by a future government.

“But she said the problem was no one knew how a royal charter would work in relation to the press. ‘It’s a bit like Dolly the sheep, it might look like a sheep, but we do not know if it will do all the thing that a sheep is supposed to do,’ she said.”

9) MESSY EXIT

Afghanistan is likely to be “messy” after western troops pull out in 2014, Defence Secretary Philip Hammond admitted yesterday.

Hammond said there was little prospect of the Kabul-based government defeating the Taliban “outright”, and the most it could hope for was securing key cities and infrastructure. The frank assessment came as Hammond gave evidence to the Commons Defence Committee.

“The ability to see a long-term sustainable peace in Afghanistan fundamentally rests upon a political compromise and political accommodation being made within that country between the different ethnic groups, the government and the Taliban,” he told the MPs. “Such an accommodation will require the active support of the neighbours, particularly Pakistan.”

10) CLINTON VS CONGRESS

From the Telegraph:

“Hillary Clinton has given an angry and emotional defence of her handling of last year’s attack on the American consulate in Benghazi, while warning of the need for a long—term US effort to address the rise of al—Qaeda in north Africa.

“… Mrs Clinton banged the table in frustration as she denied claims of a coverup. She said the issue was “not just a matter of policy, it’s personal” and choked back tears as she described comforting the families of the victims.

“…Mrs Clinton faced attacks from several senior Republicans during the hearing… Mrs Clinton banged the table with impatience at the line of questioning, saying: ‘Was it because of a protest, or was it because of guys out for a walk one night who decided they’d go kill some Americans? What difference, at this point, does it make? It is our job to figure out what happened and do everything we can to prevent it from ever happening again.'”

You can watch the exchanges here on HuffPost.

Was this a preview of 2016? A couple of those Republican senators, Marco Rubio of Florida and Rand Paul of Kentucky, will probably run for president in four years time- and could find themselves up against the combative Clinton. Good luck to them…

PUBLIC OPINION WATCH

From today’s Sun/YouGov poll:

Labour 43
Conservatives 31
Lib Dems 11
Ukip 10

That would give Labour a majority of 116.

140 CHARACTERS OR LESS

@TimMontgomerie A montage of today’s referendum-tastic newspaper headlines http://twitpic.com/bxs7ac

@Slate Since When Is France a Global Military Power? http://slate.me/XAEuO0

900 WORDS OR MORE

Timothy Garton-Ash, writing in the Guardian, says: “From outside, it’s clear why Britain has to stay in Europe.”

Peter Oborne, writing in the Telegraph, says: “David Cameron may have finished off the Tories – but he had no choice.”

Steve Richards in the Independent says: “Cameron’s speech on Europe makes it less likely he will be Prime Minister after the next election.”

Got something you want to share? Please send any stories/tips/quotes/pix/plugs/gossip to Mehdi Hasan (mehdi.hasan@huffingtonpost.com) or Ned Simons (ned.simons@huffingtonpost.com). You can also follow us on Twitter: @mehdirhasan, @nedsimons and @huffpostukpol

Memeorandum, WTF Is This Beyonce Nonsense?

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If you don’t know, Memeorandum is a blogger news aggregator. I check it out occasionally even if it does lean right. On Tuesday their top story was some explosive new coverup during Obama’s second inaugural speech. Wait for it…Beyoncé lip-synched the Star Spangled Banner at the inauguration – The wingnutosphere went ballistic.

After embarrassing themselves with the Bengahzi/Watergate comparisons, wingnuts have moved on to attack lip-synchers. Aretha Franklin laughs at this idiocy. I don’t understand why Memeorandum focuses in on wingnut conspiracy theories so much, but that’s their right.

I’m just shocked that Hillary Clinton wasn’t questioned on this by Rand Paul.

Hillary Faces Down The Angry Men

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From simpleton Ron Johnson to delusional Rand Paul, GOP senators swung at the Secretary of State and hit themselves.

January 23, 2013  |  

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Three weeks after her release from a New York hospital with a blood clot on the brain — a health emergency mocked on the right as “Benghazi flu” – Secretary of State Hillary Clinton gave Senate Republicans their day of rage over the Sept. 11 Benghazi killings on Wednesday.

From the intellectually underwhelming Ron Johnson of Wisconsin to the ever-angrier John McCain, with cameos by unimpressive 2016 hopefuls Rand Paul and Marco Rubio, Clinton stood up to the raging bulls with grace and fire of her own.

The stature gap between Clinton and those possible 2016 rivals — OK, nobody’s announced they’re running, but I couldn’t help thinking about it — was enormous. When Rand Paul huffed “had I been President at the time and I found that you did not read the cables [from Benghazi] I would have relieved you of your duties,” it wasn’t intimidating but funny. President Rand Paul? Try to say that without laughing.

Steely yet sometimes emotional, Clinton defended the State Department’s handling of the Benghazi story while not denying the underlying Libyan unrest or security troubles that caused it.

“For me, this is not just a matter of policy, it’s personal. I stood next to President Obama as the Marines carried those flag-draped caskets off the plane at Andrews,” she said in her introduction, with her voice breaking. “I put my arms around the mothers and fathers, the sisters and brothers, the sons and daughters, and the wives left alone to raise their children.”

After that, she was lectured and hectored by guys who don’t quite measure up to her and never will. Clinton spent almost as much time answering for Susan Rice’s now world-historical Sunday show appearances Sept. 16 as she did talking about what happened at the compound and her own leadership decisions.

On a morning in which senators vied for the worst moment, Tea Party darling Ron Johnson of Wisconsin stood out. “A very simple phone call to these individuals I think would have ascertained, immediately, that there was no protest prior to this…it was an assault,” he told Clinton condescendingly. The fact that Johnson could envision “a very simple phone call” in the wake of the Benghazi carnage — has he even seen photos of the devastated compound? — shows that he’s a very simple man when it comes to foreign policy. Johnson’s entire point was to ask, again, about Rice “purposely misleading” the Sunday shows five days after the attack.

Clinton began by pointing to the mayhem in the wake of the devastation, with an agent still recovering at Walter Reed and the FBI moving to gather information in an investigation that’s ongoing. “Senator, when you’re in these positions, the last thing you want to do is interfere with any other process going on,” she told Johnson, to which he replied:

“I realize that’s a good excuse,” but Clinton corrected him.

“Well, no, it’s the fact.” And she went on:

With all due respect the fact is we had four dead Americans. Was it because there was a protest or was it because there were guys who went out for a walk one night who decided they would kill some Americans? What difference at this point does it make? It is our job to figure out what happened and to do everything we can to make sure it never happens again.

McCain remained unhappy, calling Clinton’s answers “not satisfactory to me” and harrumphing “The American people deserve to know answers, and they certainly don’t deserve false answers,” McCain said. It sort of sounded like he was calling Clinton a liar. ( On second viewing: Clinton did a great job disarming McCain, a little, with warmth, replying calmly: “I understand your very very strong feelings. You knew Chris [Stevens], you were one of the staunchest supporters of the effort to dislodge [Moammar al-Qadaffi] and try to give the Libyan people a chance. And we just have a disagreement. We have a disagreement about what happened, and when it happened and with respect to explaining the sequence of events.”)

Apple Reports Quarterly Revenue Of \$54.5bn

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Apple sold 47.8 million iPhones in the last quarter of 2012 and its revenues rose to \$54.5bn but figures slightly missed targets.

Shares of the computing giant fell in after-hour trade, at one point plunging more than 10%.

Some analysts had expected iPhone sales to be around 50 million and revenues to be slightly higher.

The results are likely to rekindle questions over what Apple has in its product pipeline, and what it can do to attract new sales and maintain its growth trajectory.

It was the third quarter that Apple had missed revenue expectations.

Competition from Samsung and signs that the smartphone market may be close to saturation have slowed Apple’s growth.

Questions remain over the company’s ability to innovate after the death of Steve Jobs.

But chief executive Tim Cook said he was “thrilled” with the figures and insisted the company continued to focus on innovation.

“We’re thrilled with record revenue of over \$54bn and sales of over 75 million iOS devices in a single quarter,” Mr Cook said.

“We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

Apple also sold 22.9 million iPads in the quarter, in line with expectations.

More follows…

Surveying The Wreckage; AAPL Plummets To January 2012 Lows And Still Going

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AAPL’s after-hours loss in market cap is greater than the market cap of one BlackRock, Starbucks, Target, Costco, or Nike. Down almost 9% from yesterday’s close, AAPL is trading down to January 2012 levels (off 35% from its highs) and is now notably less capitalized than the entire European banking system. Of course, this has had serious consequences for the major indices that are trading after-hours (and futures). Futures traded down to the day-session lows before closing but QQQ are now trading at 6-day lows in after-hours…and as S&P futures reopen they are gapping down a little more.

QQQ…

After the initial spike (thank you Johnny-5), AAPL is now getting ugly ready to test under $460 handle…

which has pulled AAPL down to January 2012 levels… notice the difference in volumes from the upside when we were last here – compared to the downside – there appears plenty of sellers left.. and the $443 to $30 gap looks like it will get filled…

and just as AAPL implied vol has been compressed with the rest of the market – we would expect a reaction tomorrow when we open – and for all those downside call sellers – happy to ‘buy’ the stock ‘cheap’ at lower prices if called away – enjoy…

Which might help explain the systemic compression in vol recently… as complacency in the AAPL options skew remained extremely high…

and AAPL is now well below (widest gap since August 2011) the market cap of European banks…(even lower now after-hours)

Charts: Bloomberg

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US terror drones kill 9 in Yemen

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At least nine people have been killed in two separate US assassination drone attacks in Yemen.

The first drone strike killed seven people travelling in a vehicle near the town of Khawlan, about 35 kilometers (20 miles) southeast of the capital Sana’a, on Wednesday.

On the same day, two other people died in another attack on a house in the town of Radda in al-Bayda province.

Three people were also reportedly injured in the second strike.

The United States has launched numerous drone attacks in Yemen that have killed many innocent civilians over the past few years.

Washington claims that its airstrikes target militants, but local sources say civilians have been the main victims of the non-UN-sanctioned airstrikes.

The United States has come under fire for increasing its drone attacks in the Arab country.
Yemenis have held many demonstrations to condemn the United States’ violations of their national sovereignty.

NT/MHB

Private company plans to mine asteroids and manufacture products in space

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screenshot from youtube video by DeepSpaceIndustries

screenshot from youtube video by DeepSpaceIndustries

The days of dreaming about space rock retail goods might not be too far away: a new start-up company from California plans to mine asteroids in order to make products for consumers that are literally out of this world.

During a press conference held Tuesday in Santa Monica, CA, Deep Space Industries announced plans to put a fleet of small asteroid-mining spacecraft into orbit. The group says they wish to get the project off the ground by 2015, and by the end of the decade they hope to have an arsenal of vehicles floating through space, scooping up asteroids to be used for manufacturing.

With the help of high-tech 3D printers and state-of-the-art technology that has suddenly become more affordable than ever, DSI hopes to be among the first of new companies that aims to make asteroid rocks all the rage.

screenshot from youtube video by DeepSpaceIndustries
screenshot from youtube video by DeepSpaceIndustries

“My smartphone has more computing power than they had on the Apollo moon missions,” DSI Chairman Rick Tumlinson said during this week’s announcement. “We can make amazing machines smaller, cheaper and faster than ever before.”

“Using low cost technologies, and combining the legacy of our space program with the innovation of today’s young high tech geniuses, we will do things that would have been impossible just a few years ago,” he said, calling his project, “the first commercial campaign to explore the small asteroids that pass by Earth.”

Just last year, Planetary Resources, Inc. announced similar plans to put spacecraft into the sky and scope out precious metals to be used in manufacturing.

“The resources of Earth pale in comparison to the wealth of the solar system,” the company’s co-founder said at the time.

screenshot from youtube video by DeepSpaceIndustries
screenshot from youtube video by DeepSpaceIndustries

But while Planetary Resource’s idea has failed to come to fruition just yet, DSI’s staffers seem optimistic that a second company in the market for mining atmospheric rocks might finally jumpstart an all new race to space.

“One company may be a fluke,” Tumlinson said at Tuesday’s conference. “Two companies showing up, that’s the beginning of an industry.”

DSI hasn’t announced exactly how much money it has to fund its project, or where it’s coming from, but has revealed other information about the 55lb “FireFly” spacecraft and what each one will be capable of doing while out in orbit. Equipped with MicroGravity Foundry 3D printers, DSI says their fleet of FireFly craft will be able mine precious rock and use the resources to make retail goods.

screenshot from youtube video by DeepSpaceIndustries
screenshot from youtube video by DeepSpaceIndustries

“The MicroGravity Foundry is the first 3D printer that creates high-density high-strength metal components even in zero gravity,” DSI co-founder Stephen Covey says in a statement. “Other metal 3D printers sinter powdered metal, which requires a gravity field and leaves a porous structure, or they use low-melting point metals with less strength.”

“Using resources harvested in space is the only way to afford permanent space development,” added DSI CEO David Dump. “More than 900 new asteroids that pass near Earth are discovered every year. They can be like the Iron Range of Minnesota was for the Detroit car industry last century — a key resource located near where it was needed. In this case, metals and fuel from asteroids can expand the in-space industries of this century. That is our strategy.”

According to NBC News, FireFlies will ideally go into orbit in 2014, with three-to-four-year missions carried out by the slightly larger DragonFly craft coming the following year. Each one of those missions, claims DSI, will allow for up to 100 pounds of asteroids to be brought back to Earth.

“This is the Deep Space mission — to find, harvest and process the resources of space to help save our civilization and support the expansion of humanity beyond the Earth — and doing so in a step by step manner that leverages off our space legacy to create an amazing and hopeful future for humanity,” said Tumlinson.

Baroness Warsi Slams Media For Fuelling Anti-Muslim Hatred

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Baroness Warsi will hit out at the media for spreading negative stories about Islam on Thursday, arguing it must share the blame for a rise in hate crimes against Muslims and for “fuelling Islamophobia”.

In a speech in London this evening, the minister for faith and communities and senior Foreign Office minister will say there is an “underlying, unfounded mistrust” among many Britons towards Muslims as well as a “misinformed suspicion of people who follow Islam”.

Warsi will make the comments at a dinner held by Mama, a new government-backed group dedicated to measuring and monitoring anti-Muslim attacks.

The former Tory chairman will cite recent YouGov polling data that revealed just 23% of those asked thought Islam was not a threat to Western civilization.

“Perhaps most disturbingly, nearly half of people polled thought there would be a clash of civilisations between and Muslims and other Britons,” she will say.

Warsi will also say that early indications are that 50-60 per cent of reported religious hate crimes in 2011 were anti-Muslim.

“Sadly, much of this negative narrative is being perpetuated by certain sections of the media,” she will say.

“Lord Justice Leveson’s report event revealed journalists were encouraged to make up stories about Muslims. And concluded that the unbalanced reporting of ethnic minorities was endemic.”

Warsi’s speech comes two years after her infamous “dinner-table test” speech in which she said prejudice against Muslims had become socially acceptable in the UK.

Downing Street distanced itself from the then Tory chairman, claiming it had not cleared the speech before key lines were briefed to the media.

Warsi who lost her job as chairman in the September reshuffle, will defend her 2011 comments and return to the theme, arguing it is her duty to counteract negative perception of Muslims.

“When I said that Islamophobia had ‘passed the dinner table test’ I meant anti-Muslim sentiment had become so socially acceptable, it could be found even in the most civilised of settings,” she will say.

“I got a fair amount of stick for making that statement: There were those who denied the problem existed. There were those who said talking about it was dangerous. But let me tell you what’s really dangerous: It’s when people are treated differently because they hold a different religious belief.”

She will warn Britain is danger of turning a “blind eye” towards discrimination and that “any form of prejudice, bigotry or discrimination is wrong” and “unBritish”.

Warsi will add: “An attack on one faith is an attack on all faiths. And an attack on faith is an attack on freedom.

“It’s a matter for everyone who cares about Britain being the modern, equal, fair society that we want it to be. After all, anti-Muslim hatred is a form of prejudice. And there should be no place in Britain for this prejudice.”

Plans risk ‘fairer access’ to uni

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Education Secretary Michael Gove’s plans to separate AS-levels from A-levels risks damaging a decade’s worth of work to encourage more disadvantaged teenagers to study at Cambridge University, the prestigious institution has warned.

The proposed major overhaul has been criticised as teenagers taking A-levels will no longer sit exams after one year.

Cambridge University said knowing the results of AS-levels was crucial in increasing the number of graduates from state schools. A statement released by the institution read: “The University of Cambridge opposes the deletion of AS examinations at the end of Year 12. This change is unnecessary and, if implemented, will jeopardise over a decade’s progress towards fairer access to the University of Cambridge.”

It said AS-level results were the “most reliable indicator” of an applicant’s potential to thrive at Cambridge, and had enabled it to achieve the highest levels of undergraduates from state schools in more than 30 years.

The statement added: “AS results show an applicant’s most recent academic achievement and demonstrate progress since GCSE in a transparent and objective way. Neither GCSEs, admissions tests nor school predictions come close to matching the effectiveness of AS in enabling the proper and full assessment of applications.”

But Mr Gove said he was worried there was “too much assessment and too little learning”. He told the education select committee: “It seemed to me that one of the most effective ways we could encourage the sort of deep thinking that we want to have in people, not just who are going on to university but who are going to be entering an increasingly testing and sophisticated world of work, was to move towards a linear A-level.

“But there are certain gains, of course, in the flexibility which the AS-level has given so we didn’t want to completely abolish that. We thought the best way forward was a standalone qualification.”

He said the future was “open to debate”, including the possibility of pupils taking AS-levels in “balancing subjects” such as English and maths alongside A-levels.

The new A-levels will be taught from September 2015, which is the same time as GCSEs are set to be replaced with new English Baccalaureate Certificates (EBCs).

Christine Blower, general secretary of the National Union of Teachers, said: “2015 looks set to be the year when everything changes in schools and for young people with both GCSEs and A-levels being replaced or altered. This is an unmanageable level of change which could lead to a collapse of the system.”

Women smokers’ death risk soars

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Women smokers are far more likely to be killed by their habit today than they were in the 1960s, a major study has found.

The increased risk greatly outweighs improvements in medicine that have cut death rates among the majority of the population in the last 50 years.

In the 1960s, smoking raised a woman’s chances of dying from lung cancer 2.7 times. By the period 2000 to 2010 this had surged to 25.7-fold higher level of risk.

A similar trend holds true for deaths from chronic obstructive pulmonary disease (COPD), another smoking-related condition.

In this case, the risk of death rose from four times greater than it was for never-smokers in the 1960s to 22.5 times.

Women smokers today start their habit earlier than they did generations ago, and until recently smoked more cigarettes per day. Tobacco use among women peaked in the 1980s, having a health impact that was felt many years later.

The study involved more than 2.2 million men and women aged 55 and older and included data spanning the period from 1959 to 2010.

Men and women who smoked in the current decade were almost equally more at risk than non-smokers of suffering lung cancer, COPD, heart disease and strokes, the research showed.

For reasons still not understood, lung cancer rates among men reached a plateau in the 1980s while the risk of death from COPD in the male population continued to increase.

The findings strongly confirm the claim that “if women smoke like men, they will die like men,” say the researchers who report their findings in the New England Journal of Medicine.

Spain’s Catalonia declares sovereignty

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Catalan separatist merchandise is displayed at a stall in Las Ramblas, Barcelona, Spain. (file photo)

The parliament of Spain’s northeastern region of Catalonia has approved a declaration of the region’s sovereignty as a major step towards its independence from Spain.

The non-binding resolution was passed on Wednesday by 85 votes in favor, 41 against, and two abstentions, the Associated Press reported.

The declaration, which states that the people of Catalonia have a democratic right to decide on their sovereignty, sets up a potential showdown with the central government in Madrid.

Catalonia, one of the most developed regions in Spain, already enjoys a wide degree of autonomy, but the country’s economic crisis has fuelled Catalan nationalism.

Growing Catalan separatism is a huge challenge for Spain’s conservative Prime Minister Mariano Rajoy, who is trying to avoid getting bailed out by its European Union neighbors.

Rajoy says a referendum on secession is unconstitutional and hurts all Spaniards, who are already suffering in a recession with the unemployment rate higher than 25 percent.

The approximate 16 billion euros Catalonia pays Madrid in annual taxes is more than it gets back from the central government.

In addition, the autonomous region owes around 40 billion euros in debt, which has forced regional authorities to introduce spending cuts in healthcare and education.

Many Catalans believe their economy would be more prosperous on its own, complaining that a high portion of their taxes goes to the central government in Madrid.

Catalonia, which consists of Barcelona, Girona, Lleida, and Tarragona, accounts for one-fifth of Spain’s economic output.

Spain’s 17 autonomous regions manage their own budgets and are responsible for health and education policies and other areas of public spending.

Battered by the global financial downturn, Spain’s economy collapsed into recession in the second half of 2008, taking with it millions of jobs.

MN/MHB