European Salon de News, Discussion et Klatsch - 21 October

by Fran
Tue Oct 20th, 2009 at 04:01:30 PM EST

 A Daily Review Of International Online Media 


Europeans on this date in history:

1907 – Birth of Nikos Engonopoulos, a modern Greek painter and poet. He is one of the most important members of the Greek Generation of the '30s as well as a major representative of the surrealistic movement in Greece. (d. 1985)

More here and here

 The European Salon is a daily selection of news items to which you are invited to contribute. Post links to news stories that interest you, or just your comments. Come in and join us!


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by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 10:10:42 AM EST
BBC News: Barroso faces EU 'question time'
The European Commission President, Jose Manuel Barroso, is preparing to undergo a grilling by MEPs in a first question and answer session in Strasbourg.

The hour-long Q&A session will be based on Prime Minister's Questions in the British House of Commons.

Representatives of the parliament's main groupings will each have the chance to ask any question they want.

MEPs are hoping it will liven up the parliament's proceedings and add a touch of spontaneity.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 12:34:26 PM EST
[ Parent ]
EUobserver: Poland sets out vision for EU diplomatic corps
Poland is keen for the EU's new diplomatic corps to be a unique type of institution, to take half its staff from national capitals and to gobble up parts of the European Commission's development department.

The proposals - obtained by EUobserver - were put forward in a two page-long paper dated 5 October and are currently doing the rounds in Brussels together with competing ideas from other member states.

The Polish paper calls for the European External Action Service (EEAS) to be "a sui generis institution similar to an executive agency" instead of a normal EU institution such as the EU parliament or the commission itself.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 12:57:13 PM EST
[ Parent ]
EUobserver: Future EU foreign policy dependent on personal chemistry
The future of EU foreign policy under the new Lisbon Treaty will depend on the personal chemistry between its main players, says Benita Ferrero-Waldner, the EU commissioner currently in charge of external relations.

Speaking at the Konrad Adenauer Foundation on Monday evening (19 October) on the challenges for foreign policy under the new institutional rules, the Austrian diplomat noted that the European Commission president as well as the proposed new foreign minister and president of the European Council will all be "very visible."

"It is very important that the right personalities be nominated. Let us hope that we can have the right balance and that all three have the right chemistry with one another. This is important for the future working of the European Union."

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 01:01:42 PM EST
[ Parent ]
NRC: EU to monitor deviant behaviour in fight against terrorism
Say you are a frequent flier and you check in faster than most people. A network of advanced cameras at the airport can measure your speed and alert the control room. The system knows terrorists tend to be nervous and almost never stop for coffee. This makes a speedy traveller a suspicious traveller.

You may also want to think twice about using the airport bathroom more than once. There is a good chance you will be picked out for an extensive security check.

These are some of the things being studied by an EU-funded project for detecting suspicious behaviour, Adabts (Automatic Detection of Abnormal Behaviour and Threats in Crowded Spaces.)

Putting security cameras to use

"We monitor all deviant behaviour," says Maarten Hogervorst of TNO Defence and Security, an independent Dutch research institute. The Adabts project, in which TNO is a partner, is only one among hundreds of security projects under the umbrella of the EU research programme Security. The programme has a budget of 1.4 billion euros until 2013.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 01:22:37 PM EST
[ Parent ]
The Press Association: BNP trying to 'hijack' Armed Forces

Nick Griffin has claimed the British National Party is widely supported by rank-and-file soldiers after a group of former generals warned that the Armed Forces were in danger of being hijacked by the far right.

The BNP leader rejected their criticism of his party - suggesting they were "in the pockets" of the Tories - and insisted his views were being misrepresented.

Ex-military leaders wrote to The Times voicing anger at the BNP's tactic of using images of Winston Churchill and wartime insignia during recent European election campaigns.

The letter, signed by former heads of the Army General Sir Mike Jackson and General Sir Richard Richard Dannatt among others, said far-right groups were "fundamentally at odds" with the values of the British military.

"We call on all those who seek to hijack the good name of Britain's military for their own advantage to cease and desist," they said. "The values of these extremists -- many of whom are essentially racist -- are fundamentally at odds with the values of the modern British military, such as tolerance and fairness."

General Jackson specifically attacked the BNP for using the Army's image. He said: "The BNP is claiming that it has a better relationship with the Armed Forces than other political parties. How dare they use the image of the Army, in particular, to promote their policies. These people are beyond the pale."

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:31:44 PM EST
[ Parent ]
Russia ready to harmonize relations with U.S., NATO - Medvedev | Top Russian news and analysis online | 'RIA Novosti' newswire

BELGRADE, October 20 (RIA Novosti) - Russian President Dmitry Medvedev reiterated on Tuesday that Moscow was looking to reset relations with the U.S. and other Western partners, including NATO.

Medvedev arrived in Serbia on Tuesday for the first visit to the country by a Russian head of state since Vladimir Putin's trip in 2001.

"Russia is ready to harmonize relations with the United States and other Western partners, including constructive cooperation with NATO in resolving common tasks," Medvedev, the first foreign leader to address Serbia's parliament, said.

Commenting on Belgrade's European Union ambitions, Medvedev said Moscow had never been against EU expansion.

"We have already established a strategic partnership with the European Union. It is designed to be a pillar of the new Europe. We are not and cannot be against the accession to the EU of new members, including southeast European countries," the Russian leader said.

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:46:55 PM EST
[ Parent ]
this is good, it's exactly what should have been happening 15 years ago. Wasted time.

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Tue Oct 20th, 2009 at 04:05:16 PM EST
[ Parent ]
BBC NEWS | Europe | No jail request for French ex-PM

French prosecutors have demanded an 18-month suspended sentence for former Prime Minister Dominique de Villepin in his smear trial, but no jail time.

Mr de Villepin stands accused of plotting to hurt President Nicolas Sarkozy's chances of winning the 2007 presidential election, which he denies.

He had faced a maximum of five years in jail if convicted of the most serious charges in the high-profile trial.

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:48:13 PM EST
[ Parent ]
EU takes step toward financial watchdog | Policies | Business | Financial services | European Voice

The Swedish presidency claimed today to have secured a "broad political agreement" on the structure and powers of a high-level body to monitor risks to EU financial stability.

Anders Borg, the Swedish finance minister, said that "substantial progress" had been made in finalising the details of the new body, to be called the European Systemic Risk Board (ESRB). He said that ministers had taken "a very important step" and that the presidency hoped full agreement could be reached in December, as part of a broader package of financial reforms.

Borg said that the presidency had been mandated to begin negotiations with the European Parliament on the ESRB. MEPs have co-legislative powers over most the legislation to create the new body.

The text includes an amendment demanded by the UK that makes it clear that final agreement on the board has not been reached. Sweden had wanted to describe the agreement on the ESRB as a "general approach", a legislative term implying discussions between member states have been finalised. This was successfully opposed by the UK.

Diplomats said this was because the UK believes that being able to re-open discussions on elements of the ESRB will give it greater leverage in negotiations on the supervisory authorities.

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:51:38 PM EST
[ Parent ]
Countries criticised for blocking anti-fraud agreement | Policies | Economics | Taxation | European Voice
Austria and Luxembourg accused of blocking agreements as a way to avoid having to share tax information.

The European Commission has criticised Austria and Luxembourg for blocking adoption of an anti-fraud agreement with Liechtenstein, as well as the start of negotiations on similar agreements with Andorra, Monaco, San Marino and Switzerland. It said they were blocking the agreements as a way to avoid having to share tax information themselves.

László Kovács, the European commissioner for taxation, said that the Liechtenstein agreement should not be "held hostage to other issues". He said the actions of Austria and Luxembourg were hampering progress in cracking down on global tax fraud, an issue he said was "high on the political agenda of the EU".

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:52:39 PM EST
[ Parent ]
Yesterday and today, everyone was on autopilot:

Mircea Geoana: he has no majority, I ended his suffering / Lucian Croitoru: I am a solution not a puppet - Politics - HotNews.ro

Social Democrats, Liberals and Hungarian Democrats informed the nominated PM Lucian Croitoru that he does not have Parliamentary majority to form the government and added that he should not dive into the political game. Croitoru declared that the talk was interactive and he transmitted that he is a solution, not a puppet.

PSD leader Mircea Geoana declared after the meeting that he made it very clear to Croitoru that he does not have a Parliamentary majority. He underlined that his coalition continue to sustain Klaus Johannis. Geoana warned Croitoru that if he does not give up his position, his professional career and credibility is at risk.

The three parties urge the President to withdraw the initial proposal because Croitoru will not have a majority and asked Croitoru to stay away from the political game.


*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Oct 20th, 2009 at 02:33:56 PM EST
[ Parent ]
...and then the President's opponents made their move:

PSD leader Mircea Geoana: the Parliament to organize an extraordinary session to confirm the political support behind Klaus Johannis / It is a political act - Politics - HotNews.ro

The Permanent Offices of the two Chambers of the Parliament decided to call on Wednesday, a common meeting in order to vote an act confirming the Parliamentary majority behind Klaus Johannis.  Social Democratic Party leader Mircea Geoana declared that the coalition endorsing Johannis submitted a request which was accepted. He explained that the act is purely a political move.

The act will not compel President Basescu in any way, Senate's Speaker Mircea Geoana declared. He said that the move is just to prove that the majority behind Johannis exists. 

[Again for background: whatever the size of their majority in parliament, the parties can't nominate a PM.]

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Oct 20th, 2009 at 02:36:15 PM EST
[ Parent ]
thanks for keeping us up to date with this

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Tue Oct 20th, 2009 at 04:06:18 PM EST
[ Parent ]
I got uncertain whether this is self-explanatory, too; so let's spell it out: while a vote on Klaus Johannis won't make Johannis PM, it would symbolically confirm that it would be possible to form a government majority in the current parliament. Which would rob the President of a rhetorical argument for dissolution of parliament after the failure of his own candidate for PM.

And the update: the vote on Johannis was held this morning, and went 252 to 2, out of 334 MPs (with Băsescu's PD-L abstaining). The motion also declared the lack of support for Croitoru, the President's candidate.

Reactions have been high-pitched: the PD-L accused the others of ignoring the Constitution and the President's popular mandate, the PSD (SocDem) leader visioned the end of the Republic and compared Băsescu to Nero.

Next step announced: reinforce the motion with the signatures of all the MPs voting for on the declaration sent to the President. (That is, the message is: "you can't break up our coalition".)

Still, Parliamentarism can win this war against Presidentialism only if they can sratch on Băsescu's popularity and win back some of theirs... For scale, the last turnouts:

  • 2004 Presidential election: 58.5% first round (55.2% second round)
  • 2008 parliamentary elections: 39.2%


*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Wed Oct 21st, 2009 at 04:57:19 AM EST
[ Parent ]
Yesterday and today, everyone was on autopilot:

Forgot to link to the precedents in yesterday's Salon. In short: the President picked a PM candidate no party wants. But everyone played according to the formal script: that is, the PM candidate went to all parties to ask for their support, but none of them gave it.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Oct 20th, 2009 at 04:56:44 PM EST
[ Parent ]
EUobserver / EU states downgraded in press freedom index

EUOBSERVER / BRUSSELS - Press freedom in several European countries has eroded dramatically in the past year, particularly in Slovakia, Italy and Bulgaria, according to an annual index released on Tuesday (20 October) by NGO Reporters Without Borders.

Slovakia registered the biggest fall among EU member states, dropping by 37 places compared to 2008, as a result of "government meddling in media activities" and the adoption of a law imposing an automatic right of response in the press.

The index ranks 175 countries in the world on a scale from 0 to 115.50, with 0 being the best grade - shared by Denmark, Finland, Sweden, Ireland, Estonia and Norway - and 115.50 being the worst, as registered in Eritrea.

It is based on questionnaires with 40 criteria, including violence against journalists, imprisonment, physical attacks, censorship, confiscation of newspaper print runs, searches and harassment. The index also takes into account the degree of impunity enjoyed by those responsible for press freedom violations.

by Fran (fran at eurotrib dot com) on Tue Oct 20th, 2009 at 04:31:22 PM EST
[ Parent ]
Prosecutors demand 18-month suspended sentence for de Villepin | France 24

Paris' chief prosecutor demanded the court hand down an 18-month suspended sentence plus a 45,000-euro fine to former Prime Minister Dominique de Villepin for his alleged role in the Clearstream affair.

Former French Prime Minister Dominique de Villepin was a chief accomplice in the Clearstream affair "through his silence, and therefore in condoning the actions of [former EADS chief] Jean-Louis Gregorin", prosecutor Jean-Claude Marin said in summing up the Paris trial on Tuesday.
  Marin went on to demand the Paris court to hand down an 18-month suspended sentence plus a 45,000 euro fine to former Prime Minister Dominique de Villepin for his alleged role in the Clearstream affair.

He also recommended sentences for former head of EADS Jean-Louis Gergorin and IT expert Imad Lahoud in the case. He called for two years in prison including 6 months suspended for Lahoud, and 3 years including 18 months suspended for Gergorin.

by Fran (fran at eurotrib dot com) on Tue Oct 20th, 2009 at 04:32:47 PM EST
[ Parent ]
New Greek Prime Minister is making Cyprus peace a priority | Europe | Deutsche Welle | 19.10.2009
George Papandreou, the new Greek Prime Minister, has visited Cyprus looking to address the intransigent problem of the Mediterranean island directly. But all he had to offer Turkey was guarded support for EU membership. 

Barely a fortnight into his tenure as prime minister, Papandreou has made clear his willingness to engage in his country's perennial conflict with Turkey over Cyprus. Having visited Istanbul earlier this month, he held talks with President Demetris Christofias, the Greek Cypriot leader, in Nicosia on Monday, hoping to forge a common front on the island's reunification and Turkey's EU bid.

In a marked departure from his predecessor's passivity on the issue, Papandreou, who is also his country's foreign minister, declared that Cyprus would be Greece's foreign policy priority under his leadership.

by Fran (fran at eurotrib dot com) on Tue Oct 20th, 2009 at 04:34:57 PM EST
[ Parent ]
nrc.nl - International - Europe - EU to monitor deviant behaviour in fight against terrorism
The EU is funding ambitious programmes to monitor human behaviour in the fight against crime and terrorism. Some people are afraid this will turn us all into suspects.

Say you are a frequent flier and you check in faster than most people. A network of advanced cameras at the airport can measure your speed and alert the control room. The system knows terrorists tend to be nervous and almost never stop for coffee. This makes a speedy traveller a suspicious traveller.

You may also want to think twice about using the airport bathroom more than once. There is a good chance you will be picked out for an extensive security check.

These are some of the things being studied by an EU-funded project for detecting suspicious behaviour, Adabts (Automatic Detection of Abnormal Behaviour and Threats in Crowded Spaces.)

by Fran (fran at eurotrib dot com) on Tue Oct 20th, 2009 at 04:40:28 PM EST
[ Parent ]
Some people are afraid this will turn us all into suspects.

Poor things, they think we're not already...

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Tue Oct 20th, 2009 at 04:42:55 PM EST
[ Parent ]
In the capitalist anti-terrorist state the citizens serve two roles: consumer and suspect.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer at eurotrib.com) on Wed Oct 21st, 2009 at 12:49:09 AM EST
[ Parent ]
Poland to Accept Missile Defense Offer - NYTimes.com
BERLIN -- Poland, smarting after President Obama announced last month that he would scrap Bush-era plans to deploy an antiballistic missile system in Eastern Europe, will accept an offer to host parts of a new, more mobile missile defense system, Polish officials said Tuesday.

The plan for so-called SM-3 missiles, first proposed in Washington last month, will be spelled out in more detail on Wednesday when Vice President Joseph R. Biden Jr. holds talks with leaders in Warsaw.

"The elements of this new missile defense system will be based in Poland," said Mariusz Handzlik, the chief foreign policy adviser to the Polish president, Lech Kaczynski, whom Mr. Biden is to meet Wednesday.

"This is very important for Poland, for NATO and the U.S. Above all, this is about the long-term strategic cooperation between the U.S. and Poland," Mr. Handzlik said in a telephone interview.

by Fran (fran at eurotrib dot com) on Tue Oct 20th, 2009 at 04:41:51 PM EST
[ Parent ]
So, er, missiles that aren't going to Poland, are going to Poland?

Or does it not matter that there will be missiles in Poland, because these missiles will be completely different?

Another justification for the Nobel, I expect.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Tue Oct 20th, 2009 at 05:10:53 PM EST
[ Parent ]
 ECONOMY & FINANCE 

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 10:11:16 AM EST
EurActiv: Brussels to clamp down on derivatives market
The European Commission is planning a "paradigm shift" in its approach to the derivatives market, moving towards strict regulation of a sector which has been blamed for worsening the financial and economic crises, according to a draft document seen by EurActiv.

"The Commission believes that a paradigm shift must take place away from the traditional view that derivatives are financial instruments for professional use, for which light-handed regulation was thought sufficient," reads a draft communicationword  on derivatives to be published this week.

According to the document, future regulation in the sector must lead "towards an approach where legislation allows markets to price risks properly". A number of legislative measures will be proposed in the course of 2010, it adds.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 12:30:05 PM EST
[ Parent ]
...A number of legislative measures will be proposed in the course of 2010, it adds.

Might as well wait until 2011 or '12, since there may be a self-correcting aspect to derivatives and  derivatives of derivatives and derivatives of derivatives of derivatives.

Smart people have been pointing out the terrorist nature of these devices for several years. The collapse of the market that they caused which required massive use of the credit of the commons started 2 years ago. Why are they waiting?

...future regulation in the sector must lead "towards an approach where legislation allows markets to price risks properly".

But there is the rub. That is the whole basis of the stock market. Somebody thinks that the value of some share is too high and someone thinks it is too low.

In typical human fashion, they are attacking the wrong target. The market CAN price the risks properly, just not on a moment by moment basis. There were two or three rating agencies who supposedly allowed the risk to be properly assessed. Are they going to set up another?  Perhaps a Financial Dictator who isn't connected to terrorist organizations.

But one would think that someone could pick up that hammer from within the EU establishment already. Surely there are anti-fraud, anti-rackets, anti-terrorism divisions already. . . and not have to wait until 2011 to get started.

Never underestimate their intelligence, always underestimate their knowledge.

Frank Delaney ~ Ireland

by siegestate (siegestate or beyondwarispeace.com) on Wed Oct 21st, 2009 at 06:57:42 AM EST
[ Parent ]
SPIEGEL: Bankers Stonewall Investigators in Crisis Probes
The investigation into public bank BayernLB highlights the problems the German justice system faces in tackling the shortcomings that led to the financial crisis. Investigators are overwhelmed, and managers and supervisors have formed a wall of silence.

It was shortly after 8.30 a.m. last Wednesday when the employees of Bayerische Landesbank (BayernLB), a publicly-owned German regional bank, received an unexpected visit. Many had just poured their first cup of coffee when about 50 police officers and prosecutors marched into the bank's legal department, where they presented a search warrant issued by the Munich district court. Then they proceeded to the executive suite on the sixth floor, where CEO Michael Kemmer has his office.

At the same time, authorities were searching offices and private residences in Austria, Luxembourg and at Ammersee Lake near Munich, where Kemmer's predecessor Werner Schmidt has been living since he was forced to resign.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 01:13:26 PM EST
[ Parent ]
It's publicly-owned !! who do they think they are ??

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Tue Oct 20th, 2009 at 04:07:21 PM EST
[ Parent ]
I bet that if it was an Arab run bank we would have evidence by now that they were tied to a multi-nation scheme to suck money from the system for the benefit of their al Quasi-identifiable terrorist consortium.

Odds are that more than one person in every bank and trading house felt guilty that their associates were playing some game that was Beyond the Pale of their corporate charter and common sense. Let's treat these people as other criminals who steal from old ladies and children are treated.

Stonewalling. Come on. I watch TV. Someone spends a day or two in the slammer, some clever detectives getting the DNA from their coffee cups, everybody's story cross checked, promises made that the first one who breaks gets off, the 2nd gets double time...they'll be squealing in no time.

Never underestimate their intelligence, always underestimate their knowledge.

Frank Delaney ~ Ireland

by siegestate (siegestate or beyondwarispeace.com) on Wed Oct 21st, 2009 at 07:07:03 AM EST
[ Parent ]
Public borrowing rise puts debt target in doubt | This is Money
Government borrowing has leapt to new highs, with economists predicting that the Chancellor will have to raise his projections for public debt in the forthcoming Pre-Budget Report.

Figures from the Office for National Statistics show that national debt is now equivalent to 59% of the UK's gross domestic product after borrowing grew by £14.8bn in September, compared with £8.7bn for the same month a year ago.

Total net public borrowing now stands at a record £824.8bn, up from £695.2bn (48.4% of GDP) a year earlier.

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:33:55 PM EST
[ Parent ]
Chu nervous about high oil prices | Industry Summits | Reuters

WASHINGTON (Reuters) - The rising cost of oil could damage the world economy just as it begins to rebound, U.S. Energy Secretary Steven Chu said on Tuesday.

Wide swings in oil prices are difficult for industries to manage and the U.S. government is concerned about another price spike, Chu said.

"Even $80 is making me nervous," he told the Reuters Washington Summit.

Oil prices hit record levels above $147 a barrel last year, before crashing as a global recession cut energy demand. Crude prices are one again climbing.

Chu said a sharp upswing in oil prices could hinder a global economic recovery. He pointed out that last year's oil price spike was a "disaster" for the world economy.

"We've repeatedly said what the world wants and needs is stable prices," Chu said. "They have been inching up recently and it's a little bit concerning."

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:35:39 PM EST
[ Parent ]
EU ministers agree to wind down stimulus spending | Europe | Deutsche Welle | 20.10.2009
European Union governments have agreed to begin winding down their extra programs to boost the economy in 2011, assuming the economy continues to recover next year. 

The agreement, announced during a meeting of EU finance ministers in Luxembourg on Tuesday, comes amid signs of a slight economic recovery in Europe.

EU ministers said in a statement that they are encouraged by "signs of early recovery." Yet they have no plans to pull back on stimulus spending before 2011, as the current economic recovery "remains fragile."

"Substantial fiscal consolidation is required in order to halt and eventually reverse the increase in debt and restore sound fiscal positions," the statement said.

EU governments have spent billions of euros on public spending to prop up their economies during the financial crisis. The spending has pushed up budget deficits across Europe, with nearly all countries exceeding the EU's budget deficit limit of 3 percent of Gross Domestic Product (GDP).

by Fran (fran at eurotrib dot com) on Tue Oct 20th, 2009 at 04:33:51 PM EST
[ Parent ]
BBC NEWS | Business | Governor warns bank split needed

Reforming UK banking through regulation is not enough and a fundamental rethink of how banks are structured is needed, the Bank of England governor has said.

Some banks may have to split their core business from riskier practices, so they do not get too big to be allowed to fail, Mervyn King added.



If you're not part of the solution, you're part of the precipitate.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 20th, 2009 at 09:01:30 PM EST
[ Parent ]
Why the Housing Bubble Was Local, Not National - Idea of the Day Blog - NYTimes.com

In a new study for the Cato Institute, Randal O'Toole, a free-market economist, finds himself in presumably rare agreement with the Nobel economist and liberal Times columnist Paul Krugman.

In a 2005 column, Krugman wrote that heavily regulated areas of the country -- he called these the "Zoned Zone" -- were "prone to housing bubbles" because "a combination of high population density and land-use restrictions -- hence `zoned' -- makes it hard to build new houses."

And indeed, O'Toole finds, Krugman's early diagnosis of the bubble has been borne out: In heavily regulated places like California and Florida, scarcity inflated housing prices, which have since tanked, while prices in less regulated Texas and Georgia "haven't significantly declined."



Truth unfolds in time through a communal process.
by marco (cowannar at gmail punkt com) on Tue Oct 20th, 2009 at 09:11:57 PM EST
[ Parent ]
And of course Cato presumes that it is the zoning that causes the scarcity. Land is zoned because it is scarce and valuable. For instance, marine air only reaches so far in Southern California and only so many residences can be located "near" the beach.  But I suppose the "analysts" at Cato don't mind owning a house on a street with strip malls on one corner, complete with obligatory liquor store, "adult entertainment" book and video store, low end fast food, etc. and a low end auto repair shop on the other, complete with customer's cars parked on the street. Perhaps they are under 30 and unmarried. I lived in such places in my late 20s, but that did not make me a libertarian.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer at eurotrib.com) on Tue Oct 20th, 2009 at 10:24:14 PM EST
[ Parent ]
where the buffalo roam...

That Hissing Sound | Paul Krugman - New York Times (August 8, 2005)

... In Flatland, which occupies the middle of the country, it's easy to build houses. When the demand for houses rises, Flatland metropolitan areas, which don't really have traditional downtowns, just sprawl some more. As a result, housing prices are basically determined by the cost of construction. In Flatland, a housing bubble can't even get started.

But in the Zoned Zone, which lies along the coasts, a combination of high population density and land-use restrictions - hence "zoned" - makes it hard to build new houses. So when people become willing to spend more on houses, say because of a fall in mortgage rates, some houses get built, but the prices of existing houses also go up. And if people think that prices will continue to rise, they become willing to spend even more, driving prices still higher, and so on. In other words, the Zoned Zone is prone to housing bubbles.

And Zoned Zone housing prices, which have risen much faster than the national average, clearly point to a bubble. ...



La Chine dorme. Laisse la dormir. Quand la Chine s'éveillera, le monde tremblera.
by marco (cowannar at gmail punkt com) on Tue Oct 20th, 2009 at 11:14:47 PM EST
[ Parent ]
marco:
In other words, the Zoned Zone is prone to housing bubbles.

If those who have the privilege of living in the Zone, actually pay for the privilege - ie through the use of a location benefit levy or tax on land rental values - then the problem gets solved, because the rental value gets captured for public, not private, benefit.

Modern conservatives engage in one of man's oldest exercises in moral philosophy: the search for a superior moral justification for selfishness.Galbraith

by ChrisCook (cojockathotmaildotcom) on Wed Oct 21st, 2009 at 04:26:16 AM EST
[ Parent ]
How Did Economists Get It So Wrong? - NYTimes.com

But there was something else going on: a general belief that bubbles just don't happen. What's striking, when you reread Greenspan's assurances, is that they weren't based on evidence -- they were based on the a priori assertion that there simply can't be a bubble in housing. And the finance theorists were even more adamant on this point. In a 2007 interview, Eugene Fama, the father of the efficient-market hypothesis, declared that "the word `bubble' drives me nuts," and went on to explain why we can trust the housing market: "Housing markets are less liquid, but people are very careful when they buy houses. It's typically the biggest investment they're going to make, so they look around very carefully and they compare prices. The bidding process is very detailed."

Indeed, home buyers generally do carefully compare prices -- that is, they compare the price of their potential purchase with the prices of other houses. But this says nothing about whether the overall price of houses is justified. It's ketchup economics, again: because a two-quart bottle of ketchup costs twice as much as a one-quart bottle, finance theorists declare that the price of ketchup must be right.



En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Wed Oct 21st, 2009 at 04:35:49 AM EST
[ Parent ]
Note that, according to Barron's, Greenspan's very hard-to-find Ph.D. dissertation discussed, well, housing bubbles
We were tickled to find that the work's introduction includes a discussion of soaring housing prices and their effect on consumer spending; it even anticipates a bursting housing bubble. Writes Greenspan: "There is no perpetual motion machine which generates an ever-rising path for the prices of homes."

Greenspan, however, didn't foresee a housing mania spilling into the general economy, toppling banks and brokerage houses and paralyzing key portions of the credit system.

by gk (g k quattro due due sette "at" gmail.com) on Wed Oct 21st, 2009 at 05:06:13 AM EST
[ Parent ]
Greenspan, however, didn't foresee a housing mania spilling into the general economy, toppling banks and brokerage houses and paralyzing key portions of the credit system.

I am shocked that Barron's didn't continue that sentence with...
...or see the nearly systemic fraud which coupled to make it the worst 'toppling' ever.


Never underestimate their intelligence, always underestimate their knowledge.

Frank Delaney ~ Ireland

by siegestate (siegestate or beyondwarispeace.com) on Wed Oct 21st, 2009 at 07:24:07 AM EST
[ Parent ]
California Sues State Street for $200 Million

California's attorney general, Jerry Brown, said Tuesday that he was suing State Street, the large Boston-based bank, accusing it of committing "unconscionable fraud" against the state's two largest employee pension funds, Calpers and Calstrs. Mr. Brown said he was seeing to recover more than $200 million in overcharges and penalties.

Mr. Brown said that State Street overcharged the pension funds by adding a secret and substantial mark-up to the price of interbank foreign currency trades, totaling $56.6 million over eight years. The interbank rate is the price at which major banks buy and sell foreign currency.

"Over a period of eight years, State Street bankers committed unconscionable fraud by misappropriating millions of dollars that rightfully belonged to California's public pension funds," Mr. Brown said in a statement. "This is just the latest example of how clever financial traders violate laws and rip off the public trust."

State Street rejected Mr. Brown's assertions. "We categorically deny any allegations of wrongdoing and will defend ourselves against any litigation," a bank spokeswoman, Carolyn Cichon, said in an e-mail statement.

Mr. Brown contended that although the bank was contractually obligated to charge the interbank rate to the pension funds at the precise time of the trade, State Street consistently charged at or near the highest rate of the day, even if the interbank rate was lower at the time of trade.



As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer at eurotrib.com) on Tue Oct 20th, 2009 at 10:39:21 PM EST
[ Parent ]
In a hilarious counterpoint to this article, CNBC invited Jerry Brown to appear in an exclusive interview with Michelle Cariso-Cabrera and Dennis Kneale and try to pass his actions off as a publicity stunt preparatory to a run for governor and the fraud as business as usual on wall street.  At one point Jerry asks? "Are you pimping for the defendant?  I can't believe it! You are supposed to tell the truth." At another he says "We don't have to do the interview if you don't want! It was your idea." Then Jerry says that several other Attorneys General will be joining his suit but: "You have got the story and won't need to cover it.  You can just go on to the next story."  

Zero Hedge has a column with the video and lots of comments. An atypical T&A show for CNBC with Michelle cast as expected, but modestly dressed, and Dennis Kneale cast as the ass, or perhaps he just seized the opportunity and made himself an ass.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer at eurotrib.com) on Tue Oct 20th, 2009 at 11:10:56 PM EST
[ Parent ]
How Moody's sold its ratings - and sold out investors

WASHINGTON -- As the housing market collapsed in late 2007, Moody's Investors Service, whose investment ratings were widely trusted, responded by purging analysts and executives who warned of trouble and promoting those who helped Wall Street plunge the country into its worst financial crisis since the Great Depression.

A McClatchy investigation has found that Moody's punished executives who questioned why the company was risking its reputation by putting its profits ahead of providing trustworthy ratings for investment offerings.

....

"The story at Moody's doesn't start in 2007; it starts in 2000," said Mark Froeba, a Harvard-educated lawyer and senior vice president who joined Moody's structured finance group in 1997....Moody's was spun off from Dun & Bradstreet in 2000, and the first company shares began trading on Oct. 31 that year at $12.57. Executives set out to erase a conservative corporate culture. (Trick or Treat!)

....

"This was a systematic and aggressive strategy to replace a culture that was very conservative, an accuracy-and-quality oriented (culture), a getting-the-rating-right kind of culture, with a culture that was supposed to be 'business-friendly,' but was consistently less likely to assign a rating that was tougher than our competitors," Froeba said.

After Froeba and others raised concerns that the methodology Moody's was using to rate investment offerings allowed the firm's profit interests to trump honest ratings, he and nine other outspoken critics in his group were "downsized" in December 2007.

Guess the "free market" doesn't always do things better.  Who knew? But what about Standard and Poor's and Fitch?  A long and informative article.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer at eurotrib.com) on Tue Oct 20th, 2009 at 11:57:36 PM EST
[ Parent ]
Op-Ed Columnist - Safety Nets for the Rich - NYTimes.com
The headlines that ran side by side on the front page of Saturday's New York Times summed up, inadvertently, the terrible fix that we've allowed our country to fall into.The lead headline, in the upper right-hand corner, said: "U.S. Deficit Rises to $1.4 Trillion; Biggest Since '45."

The headline next to it said: "Bailout Helps Revive Banks, And Bonuses."

We've spent the last few decades shoveling money at the rich like there was no tomorrow. We abandoned the poor, put an economic stranglehold on the middle class and all but bankrupted the federal government -- while giving the banks and megacorporations and the rest of the swells at the top of the economic pyramid just about everything they've wanted.

And we still don't seem to have learned the proper lessons. We've allowed so many people to fall into the terrible abyss of unemployment that no one -- not the Obama administration, not the labor unions and most certainly no one in the Republican Party -- has a clue about how to put them back to work.

Meanwhile, Wall Street is living it up. I'm amazed at how passive the population has remained in the face of this sustained outrage.

Op-Ed Columnist - Safety Nets for the Rich - NYTimes.com

Enough! Goldman Sachs is thriving while the combined rates of unemployment and underemployment are creeping toward a mind-boggling 20 percent. Two-thirds of all the income gains from the years 2002 to 2007 -- two-thirds! -- went to the top 1 percent of Americans.

We cannot continue transferring the nation's wealth to those at the apex of the economic pyramid -- which is what we have been doing for the past three decades or so -- while hoping that someday, maybe, the benefits of that transfer will trickle down in the form of steady employment and improved living standards for the many millions of families struggling to make it from day to day.

That money is never going to trickle down. It's a fairy tale. We're crazy to continue believing it.




Modern conservatives engage in one of man's oldest exercises in moral philosophy: the search for a superior moral justification for selfishness.Galbraith
by ChrisCook (cojockathotmaildotcom) on Wed Oct 21st, 2009 at 05:00:03 AM EST
[ Parent ]
We cannot continue transferring the nation's wealth to those at the apex of the economic pyramid -- which is what we have been doing for the past three decades or so -- while hoping that someday, maybe, the benefits of that transfer will trickle down in the form of steady employment and improved living standards for the many millions of families struggling to make it from day to day.

That money is never going to trickle down. It's a fairy tale. We're crazy to continue believing it.

But while legislators are largely drawn, if not from that 1%, then from very close to it, they will continue to believe that "American Dream" crap and thus not do the root and branch thing necessary to help th 95% who are getting stuffed.

After all, the system works. Or, at least, it did for them so why does it need changing ? Heck, you can't even get all democrats to sign up for something basic like healthcare, so how on earth you're gonna get them to do something much much more radical I cannot imagine.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Oct 21st, 2009 at 05:14:13 AM EST
[ Parent ]
National Journal Magazine - Is The American Dream A Myth?

One tenet that separates the United States from other countries is our belief in upward mobility. A study of attitudes in 27 countries found that Americans, more than people elsewhere, tend to believe that intelligence, skill, and effort will be rewarded with success.

[...]

But as Brookings Institution scholars Ron Haskins and Isabel Sawhill demonstrate in a compelling new book, America's record doesn't entirely justify this optimism.

[...]

Though we venerate the American Dream, studies show that children born to low-income parents in the United States are more likely to remain trapped near the bottom than their counterparts in Europe, the authors report.


(my emphasis) Via Mark Thoma.

Europeans think a hundred miles is a long way. Americans think a hundred years is a long time.
by Bernard on Wed Oct 21st, 2009 at 09:35:16 AM EST
[ Parent ]
The next crisis is already under way - Credit Writedowns

What you should draw from this is the following:

  1. The Great Moderation is revealed as an illusion once we reach the zero bound, where interest rates are near zero.  At this point the asset-price reflation can no longer rely on interest rates alone, but must also use increasingly heavy-handed tactics to get the economy going.  This is where we now are.
  2. Terminal Debt is fast approaching. Steve Keen believes we are at a Terminal Debt stage, where no more debt can possibly be accumulated to revive growth.  However, I have presented you with evidence that this is not necessarily the case (see posts here and here). Nevertheless, it is fast approaching.
  3. The central bank is damned if it does and damned if it doesn't. This was the takeaway of the Scylla and Charybdis post: All roads lead to a W-style Japanese depression or a deflationary bust because deflation is secular (Terminal Debt) while inflation is cyclical (asset prices). An inflationary scenario will invite a policy response which kills the recovery.
  4. This is good for government bonds but not for risky assets.  Longer-term, this is a good environment for government bonds. They are the risk-free asset in an environment of secular deflation. Shares are not a good investment in this situation despite huge rallies.  Remember, we saw huge bear market rallies after 1929 and again in Japan after 1990.

I believe we are in the reflationary period of a longer-term depression right now. As a result, there is substantial downside risk for the economy going forward. Like Munchau, I don't have any magic bullet solution to this dilemma - although I do have a number of ideas.  Feel free to chime in with your thoughts on the way forward.



Modern conservatives engage in one of man's oldest exercises in moral philosophy: the search for a superior moral justification for selfishness.Galbraith
by ChrisCook (cojockathotmaildotcom) on Wed Oct 21st, 2009 at 05:13:10 AM EST
[ Parent ]
FT.com / Columnists / Wolfgang Munchau - Countdown to the next crisis is already under way

This is exactly what the economist Hyman Minsky predicted in his financial instability hypothesis.** He postulated that a world with a large financial sector and an excessive emphasis on the production of investment goods creates instability both in terms of output and prices.

While, according to Minsky, these are the deep causes of instability, the mechanism through which instability comes about is the way governments and central banks respond to crises. The state has potent means to end a recession, but the policies it uses give rise to the next phase of instability. Minsky made that observation on the basis of data mostly from the 1970s and early 1980s, but his theory describes very well what has been happening to the global economy ever since, especially in the past decade. The world has witnessed a proliferation of financial bubbles and extreme economic instability that cannot be explained by any of the established macroeconomic models. Minsky is about all we have.

His policy conclusions are disturbing, especially if contrasted with what is actually happening. In their crisis response, world leaders have focused on bonuses and other irrelevant side-issues. But they have failed to address the financial sector's overall size. So if Minsky is right, instability should continue and get worse.

I am buying a copy of Minsky's 1986 book, but in reality most of this was there already in Veblen's 1904 book.

Not only were economists blind to Veblen 100 years ago but they forgot about Keynes' "when the capital development of a coutry becomes a byproduct of the activities of a casino the job is likely to be ill-done" within 20 years. But the more egregious blindness is really the one regarding Minsky.

Let's see if I got this right. Minsky, by then already a respectable economist, writes a book about financial instability in 1986. In 1987 the market has the largest one-day crash in history and yet it's only now that people say that his theory has become interesting because of the current crisis?

What about the Savings and Loans crisis, the Mexican currency crisis, the Asian crisis, Russian crisis, Argentina, .com bubble...

WTF is wrong with economists?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Wed Oct 21st, 2009 at 05:34:26 AM EST
[ Parent ]
In their crisis response, world leaders have focused on bonuses and other irrelevant side-issues.

Dum-de-dum-de-dum.

by Colman (colman at eurotrib.com) on Wed Oct 21st, 2009 at 05:41:41 AM EST
[ Parent ]
JakeS: and I have been tag-team-quoting this passage every so often...
Yet to suppose that President Hoover was engaged only in organizing further reassurance is to do him a serious injustice. He was also conducting one of the oldest, most important - and, unhappily, one of the least understood - rites in American life. This is the rite of the meeting which is called not to do business but to do no business. It is a rite which is still much practised in our time. It is worth examining for a moment.

Men meet together for many reasons in the course of business. They need to instruct or persuade each other. They must agree on a course of action. They find thinking in public more productive or less painful than thinking in private. But there are at least as many reasons for meetings to transact no business. Meetings are held because men seek companionship or, at a minimum, wish to escape the tedium of solitary duties. They yearn for the prestige which accrues to the man who presides over meetings, and this leads them to convoke assemblages over which they can preside. Finally, there is the meeting which is called not because there is business to be done, but because it is necessary to create the impression that business is being done. Such meetings are more than a substitute for action. They are widely regarded as action.

The fact that no business is transacted at a no-business meeting is normally not a serious cause of embarrassment to those attending.

- J.K. Galbraith, The Great Crash of 1929



En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Wed Oct 21st, 2009 at 06:28:50 AM EST
[ Parent ]
WTF is wrong with economists?

Ahh, I thik you have mistaken the function of economists as being analogous to physicists. If there is a demonstrated problem with physics, physicists go and examine their theories, design hypothesies about why they've gone wrong and then adjust the theories which describe the phenomenon to adjust to reality.

Economists are not that kind of beast.

The best way I can describe it is thus : The Queen of England thinks the world smells of fresh paint. This is because everywhere she goes people ensure that all is clean and freshly painted so that she gets the best impression possible of anything she sees.

Economists perform a similar function as the painters, they are there to adjust reality so that, whichever way a politician or commentator regards the economy, there is always a rosy glow to to the scene.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Oct 21st, 2009 at 06:56:13 AM EST
[ Parent ]
Helen:
Economists perform a similar function as the painters, they are there to adjust reality so that, whichever way a politician or commentator regards the economy, there is always a rosy glow to to the scene.
Except when they have a banker standing behind them, in which case they tell the politician that unless they give all their money to the banker therw will be doom.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Wed Oct 21st, 2009 at 07:22:32 AM EST
[ Parent ]
Is there more to Chicago School economics than that?

(Using the word 'school' to mean 'large group of predatory fish', presumably.)

by ThatBritGuy (thatbritguy (at) googlemail.com) on Wed Oct 21st, 2009 at 08:59:22 AM EST
[ Parent ]
'coven' seems more appropriate...

"Two wrongs don't make a right, but three lefts do." Jim Hightower
by melo (melometa4(at)gmail.com) on Thu Oct 22nd, 2009 at 09:22:21 AM EST
[ Parent ]
FT.com / Columnists / Wolfgang Munchau - Countdown to the next crisis is already under way
So if Minsky is right, instability should continue and get worse.
Hmm... Right after this he gives two options: monetary loosening or tightening, and concludes
In other words, there is danger no matter how the central banks react. Successful monetary policy could be like walking along a perilous ridge, on either side of which lies a precipice of instability.
Munchau continues to assume there's no fiscal policy to be had and all there is is monetary policy.

As Krugman never tires to say, we're in a Keynesian liquidity trap, against the zero lower bound of interest rates, and conventional monetary policy has ceased to have any effect (good or bad).

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Wed Oct 21st, 2009 at 07:30:24 AM EST
[ Parent ]
ChrisCook:
asset-price reflation can no longer rely on interest rates alone, but must also use increasingly heavy-handed tactics to get the economy going
The implication is that asset-price inflation is needed to get the economy going. Discuss.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Wed Oct 21st, 2009 at 09:02:05 AM EST
[ Parent ]
Yes, practically every commentator in the UK seems to think that the price of housing going up is something to celebrate. So if house prices start rising, the economy is doing well, pop the champagne corks, move along folks nothing to see etc.

As Geezer says in his diary;-

When the "home equity loan" became the source of funds for consumption, we bailed out. We knew it was over- that the motors were now finally silent, that the system was losing altitude fast, and had to crash very soon.

To us this seems a statement of the bleeding obvious. However this obviousness seems to elude most commentators, politicians and their appointed administrators.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Wed Oct 21st, 2009 at 09:59:11 AM EST
[ Parent ]
Migeru:
The implication is that asset-price inflation is needed to get the economy going. Discuss.

as in say, housing prices going up again, so everyone with a toe-hold in the middle class feels rich enough to be a confident consumer again?

what other assets might be on the table for this?

carbon tax credits for bicyclists?

satyagraha spinning wheels?

can you have 'asset-price inflation' without it bubbling sooner or later, as all the speck-ers smell opportunity, and cluster, jacking and jockeying the asset's reputed value high enough to pay a foodchain of middlemen to suck as much as they can out of it as it attains necessary 'velocity'on its way from raw material to 'end-user'?

"Two wrongs don't make a right, but three lefts do." Jim Hightower

by melo (melometa4(at)gmail.com) on Wed Oct 21st, 2009 at 10:12:31 AM EST
[ Parent ]
melo:
satyagraha spinning wheels?

Oddly reminiscent of most of what passes for economics, certainly.

The wheels are spinning, people are earning merit, but nothing much is happening.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Wed Oct 21st, 2009 at 10:16:03 AM EST
[ Parent ]
 WORLD 

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 10:16:52 AM EST
SPIEGEL: Second Afghan Vote Poses Risks for West
The US government had been increasing the pressure by the day. On Tuesday, Afghan President Hamid Karzai gave in and announced he would submit to a run-off election against challenger Abdullah Abdullah. Renewed election fraud could mean a loss of face for the US -- and compromise the West as guarantors of democracy.

The waiting for the official election results in Afghanistan has come to an end. On Tuesday, the Election Commission in Afghanistan decided against President Hamid Karzai -- thus joining the United Nations-supported Electoral Complaints Commission, which had found that around one-third of the votes cast in the country's August presidential elections were invalid. Karzai will now face a run-off election against his challenger Abdullah Abdullah on Nov. 7.

Karzai conceded defeat and said that he accepted the decision of the Election Commission, reversing weeks of refusal to submit to a run-off despite numerous indications of election fraud. The initial results had Karzai winning an absolute majority of 54 percent against 28 percent for Abdullah, who spent years as Afghanistan's foreign minister. Now, though, it has become clear that Karzai's share of the vote was below 50 percent.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 01:10:10 PM EST
[ Parent ]
Why do they cling to this charade ? Nobody is convinced back here and it only breeds resentment in Afghanistan.

Very not winning hearts and minds ? Can we have an adult in charge of this please  ? I'm sick of this childishness.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Oct 20th, 2009 at 04:09:30 PM EST
[ Parent ]
Going through the motions of democracy poses risks for The West&treade;... then whyTF do we bother keeping appearances?

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Tue Oct 20th, 2009 at 04:35:24 PM EST
[ Parent ]
SPIEGEL's argument in this analysis piece is more that it doesn't remove existing risks, which is fair enough, but not interestingly contrarian as a headline or lede.
by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 07:08:40 PM EST
[ Parent ]
RFI - Bomb blast rocks Islamic university
At least six people were killed and 12 wounded in two bomb blasts at the International Islamic university in the Pakistani capital, Islamabad on Tuesday. The near-simultaneous bomb blasts went off in both the male and female campuses. Eyewitnesses say that there was a lot of smoke and noise as paramedics rushed to the scene to take care of the wounded.
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:43:58 PM EST
[ Parent ]
Haaretz: Netanyahu to Abbas: The time has come for peace (20/10/2009)
Prime Minister Benjamin Netanyahu on Tuesday called on Palestinian President to renew peace negotiations with Israel and bring an end to the years of conflict.

In his address to the gala opening of the Presidential Conference, Netanyahu urged the Palestinian leader to tell his people: "The time has come to end this conflict; tell them that the time has come for two nations to live side-by-side in peace and security."

"I believe that peace with the Palestinians is possible, but that requires brave leadership on both sides," he said. "I ask of you," Netanyahu added, directing his remarks at the Palestinian leader, "something I have not even asked of myself. We must discuss peace as soon as possible, and I am ready to do so. But these cannot be closed talks. We must say these things to the world, to our people and to the Palestinian people."



En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Tue Oct 20th, 2009 at 06:20:43 PM EST
[ Parent ]
Okay Mr Netanyaho, show the leadership by telling the settlers they have to leave the West Bank. Peace is impossible if the palestinians have no land of their own worth a damn and your guys have stolen every last bit of it.

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Wed Oct 21st, 2009 at 03:46:17 AM EST
[ Parent ]
Why Obama Has to do What Letterman Did: Refuse to Pay Hush Money

Last January, as I understand it, the White House promised Big Pharma, big insurance, and the American Medical Association the moral equivalent of what Joel Halderman allegedly demanded of David Letterman: hush money. The groups agreed to stay silent or even be supportive of healthcare reform, as long as they were paid off.

But now that it's time to collect, the bill is larger than the White House expected, and it's going to fall like an avalanche on middle class Americans in coming years. That could mean an ugly 2012 election (read Sarah Palin).

So the President has to do what Letterman did: Refuse to pay.

Reich then describes how Obama promised Big Pharma to "bar on genetic drug manufacturers introducing similar biologic drugs until the originals have been on the market at least twelve years, and no public insurance option to negotiate low drug prices."  Obama promised the Insurance Companies "25 to 30 million more paying customers (many of them young and healthy), a requirement that almost all businesses "pay or play," and no competition from a public option."  And Obama promised the AMA "a permanent fix that would change the reimbursement formula altogether and reward them $240 billion over the next ten years."

But when they all get paid off, who will do the paying? Middle-class Americans who are already in a financial squeeze -- whose wages are lower, adjusted for inflation, than they were thirty years ago, and whose jobs are disappearing. They'll face still higher premiums, co-payments, and deductibles; and they'll pay higher drug prices, Medicare premiums, and taxes to cover the rest.

....

The three big means of containing costs: (1) A true public option (better yet, one that allows anyone now holding private insurance to opt into; (2) authority for Medicare to negotiate low drug prices; and (3) lower Medicare reimbursement rates to doctors (in other words, no "doctor fix").

In addition, the so-called "medical exchanges" in the emerging bills (as well as the public option, which hopefully will be included) should give preference to pre-paid heathcare plans, like Kaiser Permanente, whose doctors are on salary and have every incentive to keep people healthy rather than charge for more services and tests.

So, will Congress honor Obama's promises and drink from the poisoned chalice, or will they take a tip from Jesse Unruh and take the money from the insurance and drug companies and from the AMA and then vote in the things they oppose.  It would be interesting to see Obama's reaction if Congress passed a really good bill that ignored all of his venal promises.  Would he veto the bill?  Don't hold your breath.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer at eurotrib.com) on Tue Oct 20th, 2009 at 11:37:58 PM EST
[ Parent ]
 LIVING OFF THE PLANET 
 Environment, Energy, Agriculture, Food 

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 10:17:30 AM EST
EurActiv: Bulgaria ousted from Russia's South Stream pipe
Russia has obtained all the permits necessary to build its 'South Stream' gas pipeline through Turkish territorial waters, discarding Bulgaria as one of the project's transit countries, the Russian press writes today (20 October).

Taner Yildiz, Turkey's economy minister, has granted all the necessary authorisations for the South Stream project to run through Turkish territory, the Russian daily Kommersant writes.

The event, which was hosted by Italian Economy Minister Claudio Scajola in Milan on Friday (19 October), eliminated Bulgaria as a transit country for the Gazprom-favoured pipeline, the daily writes. Bulgaria was also evicted from the Burgas-Alexandroupolis oil pipeline project, the newspaper adds.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 12:31:31 PM EST
[ Parent ]
Where's it going then ? Through Greece ?

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Tue Oct 20th, 2009 at 04:10:37 PM EST
[ Parent ]
European Commission (press release): Fisheries Council agrees on Control regulation and on 2010 fishing possibilities for the Baltic Sea
The Fisheries Council meeting in Luxembourg on 19 and 20 October took a number of important decisions and made headway on a number of issues. The discussions were dominated by the Commission's proposals for a root-and-branch reform of the CFP control framework and for fishing possibilities in the Baltic Sea for 2010.

The Control Regulation, proposed last November, has now been approved by Council and will enter into force on 1 January 2010. Delays have been agreed for a number of articles to enable Member States to be fully prepared to implement all measures in the Regulation. Ministers resolved the final outstanding issues, including a degree of harmonisation of sanctions, a new penalty points system, a payback system for overfished quotas and provisions to allow for the suspension of Community assistance in the event of non-compliance by Member States with the agreed control provisions. Furthermore, it was agreed that, for now, recreational catches will not be counted against national quotas. The new control system will provide Europe with the level playing field required to usher in a much-needed culture of compliance in the fisheries sector.

Council also reached political agreement on the Commission proposal on fishing possibilities for fish stocks in the Baltic Sea for 2010. On the positive side, with scientific advice showing that cod stocks in the Baltic are starting to recover, Council was able to agree on total allowable catches (TAC) increases of 15% and 9% for the eastern and western cod stocks respectively.

On the less positive side, the western herring stock continues to cause serious concern, prompting Council to agree on a 16.5% reduction.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 12:42:36 PM EST
[ Parent ]
Reuters: EU fishing cheats to lose licences in crackdown
EU fisheries ministers agreed on Tuesday to crack down on overfishing, saying their fishermen would get points on their fishing licences each time they broke rules or quotas and would be banned for excessive infractions.

The points system, taking effect next year, is part of a drive to reduce excessive fishing which has severely depleted European stocks of cod, haddock and hake.

Ministers agreed new quotas for Baltic cod and herring and put on hold a controversial proposal that national tallies include fish landed by recreational anglers.

They also cut the amount of overfishing that will be tolerated to 10 percent from 20 -- drawing criticism from a Green Europarliamentarian that this was accepting "legalised cheating," though on a reduced scale.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 12:45:13 PM EST
[ Parent ]
UKPA: EU to monitor amateur fishermen
Amateur anglers are to be included in tougher controls on EU fishing which have been agreed as part of continuing efforts to revive dwindling stocks.

A deal struck in Luxembourg means closer monitoring of licensed fishing boats, stiff penalties on the industry and national authorities for breaching strict annual catch quotas, and the first-ever inclusion of casual fishermen in the Common Fisheries Policy net.

After howls of anguish from MEPs earlier this year, the new deal clarifies that those catching a bit of supper off the end of the local jetty with a rod and line will not be included.

And even anglers putting to sea will not have to report every landed tiddler to the authorities - unless the fish on the line is subject to an EU stock recovery programme, such as cod in the North Sea.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 12:47:30 PM EST
[ Parent ]
AFP: EU farm ministers refuse to okay new GM maize strains
European Union farm ministers refused to give their seal of approval on Monday to plans to allow the import of genetically-modified maize from US growers, diplomats said.

During a meeting of European Union agriculture ministers in Luxembourg dominated by crisis in the dairy sector, nations were unable to agree on proposals to greenlight the latest batch of so-called 'Frankenstein foods.'

Agriculture Commissioner Mariann Fischer Boel sought the go-ahead for two strains of corn produced by Monsanto and another by rivals Pioneer to be cleared for import by European firms.

Several sources told AFP that the decision would ultimately be left up to the commission itself, because if no agreement can be reached by the ministers Brussels will have free rein to choose.

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 12:51:17 PM EST
[ Parent ]
CLIMATE CHANGE: Carbon Capture Effort Collects Critics - IPS ipsnews.net
BERLIN, Oct 20 (Tierramérica) - The capture and underground storage of greenhouse gases, especially carbon dioxide, is a dubious method of effectively reducing the pollution that causes global warming, experts warn.

Scientists, environmentalists and local communities continue to object to the method, which consists of compressing and liquefying carbon dioxide before sending it to underground deposits, and which has been applied for some time to recover petroleum and gas from partially exhausted oil wells.

The Intergovernmental Panel on Climate Change (IPCC) looked at these techniques in 2007, and more closely in 2005, when its Working Group III published a 443-page report.

Germany's federal government was forced last summer to halt the process for approving a law authorising the capture and deposit of carbon, after facing opposition from local communities in the regions preliminarily selected for experimenting with the technique.

Rejection of the process has been fuelled by scientific reports and environmental groups. In 2006, geologist Gabriela von Goerne, of the German branch of Greenpeace, said such methods should only be used as a last option in the fight against global warming.
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:37:31 PM EST
[ Parent ]
WWF - Bushmeat consumption soars as forest cover declines
Cambridge, UK - New analytical techniques have revealed that the scale of bushmeat trade in Central Africa may be much larger than originally thought, according to a study published today by TRAFFIC, the wildlife trade monitoring network.

The study, based on an analysis of food balance sheets provided by the UN Food and Agriculture Organization's statistical database FAOSTAT, strongly supports the view that the current situation surrounding bushmeat hunting in Central African rainforests is precarious. According to the analysis, bushmeat extraction rose considerably in the Congo Basin between 1990 and 2005, despite the overall decrease in forest cover in Central Africa.

Cameroon appears to be exceeding--by more than 100%--an estimated sustainable offtake of 150 kg of game meat per square kilometre of forest, and Gabon and the Republic of Congo are both close to this limit. The greatest rise in bushmeat production was in the Democratic Republic of Congo, where the yield rose from 78,000 tonnes in 1990 to 90,000 tonnes in 2005. In the Republic of Congo, production almost doubled, from 11,000 to 20,000 tonnes per year in the same time period.

"While the FAOSTAT bushmeat data are probably underestimates and should be regarded with caution, the data are the most readily available official sources of information on production of wild meat in the Congo Basin and are valuable indicators of bushmeat production and consumption trends," says Stefan Ziegler, Programme Officer with WWF Germany, and author of the report.

Wildlife is a significant and direct source of protein for more than 34 million people living in the Congo Basin and bushmeat hunting is a key component of many peoples' livelihoods in Central Africa.
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:57:25 PM EST
[ Parent ]
Arctic Traps 25 Percent of World's Carbon, But That Could Change

Reston VA (SPX) The arctic could potentially alter the Earth's climate by becoming a possible source of global atmospheric carbon dioxide. The arctic now traps or absorbs up to 25 percent of this gas but climate change could alter that amount, according to a study published in the November issue of Ecological Monographs.

This figure shows the mean extent of permafrost in the Arctic, estimated for (a) the years 1990-2000 and (b) the years 2090-2100. Credit: A. David McGuire, USGS

In their review paper, David McGuire of the U.S. Geological Survey and the University of Alaska at Fairbanks and his colleagues show that the Arctic has been a carbon sink since the end of the last Ice Age, which has recently accounted for between zero and 25 percent, or up to about 800 million metric tons, of the global carbon sink.

On average, says McGuire, the Arctic accounts for 10-15 percent of the Earth's carbon sink. But the rapid rate of climate change in the Arctic - about twice that of lower latitudes - could eliminate the sink and instead, possibly make the Arctic a source of carbon dioxide.

....

On the scale of a few decades, the thawing permafrost could also result in a more waterlogged Arctic, says McGuire, a situation that could encourage the activity of methane-producing organisms. Currently, the Arctic is a substantial source of methane to the atmosphere: as much as 50 million metric tons of methane are released per year, in comparison to the 400 million metric tons of carbon dioxide the Arctic stores yearly. But methane is a very potent greenhouse gas- about 23 times more effective at trapping heat than carbon dioxide on a 100-year time scale. If the release of Arctic methane accelerates, global warming could increase at much faster rates.

"We don't understand methane very well, and its releases to the atmosphere are more episodic than the exchanges of carbon dioxide with the atmosphere," says McGuire. "It's important to pay attention to methane dynamics because of methane's substantial potential to accelerate global warming."



As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer at eurotrib.com) on Wed Oct 21st, 2009 at 12:20:53 AM EST
[ Parent ]

Photos from the Midway atoll which is rather isolated place in Mid-Pacific though unfortunately in the midst of the Great Pacific Garbage Patch — Wikipedia.

BBC —
Nearly two million Laysan albatrosses live on the islands. Researchers have concluded that every single one contains some quantity of plastic.

 About one-third of all albatross chicks die on Midway, many as the result of being mistakenly fed plastic by their parents.

Found via Counterpunch.
by Humbug (mailklammeraffeschultedivisstrackepunktde) on Wed Oct 21st, 2009 at 10:47:36 AM EST
[ Parent ]
 LIVING ON THE PLANET 
 Society, Culture, History, Information 

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 10:18:20 AM EST
DEVELOPMENT-SOUTH ASIA: Women's Peace Offensive - IPS ipsnews.net
Analysis by Beena Sarwar

KABUL, Oct 18 (IPS) - `Give peace a chance' may just be another cliché for many, but for women who have suffered the ravages of war, endless strife and other forms of conflict, joining hands to find meaningful solutions to their collective aspiration lends it a whole new meaning.

Within the South Asian region, Pakistan, India and Afghanistan have for decades been torn by internal and external conflicts that have cried out for, but have not quite found, a lasting resolution.

"We waited for a long time to see what the men would do for peace," Zahira Khattak, a member the think-tank formed by Pakistan's Awami National Party (ANP), told IPS.

For Khattak and scores of other women in this region, not only has peace proved elusive, they have also been left out of much of the peace efforts by their respective states.

"Why should this be so?" argued Khattak. "For 5,000 years women have been sitting in `jirgas' (tribal councils), at least in Afghanistan. We have `jirgas' all over Pakistan's tribal areas also, and we thought why not introduce this concept?"
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Oct 20th, 2009 at 01:41:10 PM EST
[ Parent ]
Corporate bullying on the net must be resisted | Technology | guardian.co.uk
Back in September, my Boing Boing co-editor Xeni Jardin blogged a photo of a Japanese Ralph Lauren store display featuring model Filippa Hamilton with her proportions digitally altered so that "her pelvis was bigger than her head." Xeni posted the image as a brief and pithy comment on the unrealistic body image conveyed by couture advertising - in other words, she posted it as commentary, and thus fell into one of the copyright exemptions that Americans call "fair use" and others call "fair dealing".


If you're not part of the solution, you're part of the precipitate.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 20th, 2009 at 02:39:14 PM EST
[ Parent ]
Global Voices Online » Uganda: Bloggers discuss anti-gay bill
The Ugandan anti gay bill has been tabled in parliament and now it awaits the president Yoweri Museveni to sign and make homosexuality officially illegal. The previous code was not clear but now the bill called "The anti homosexuality Bill 2009" tabled by a member of parliament David Bahati which states that any homosexuality act or tendencies might face the death penalty or face life imprisonment. The Ugandan writes:


If you're not part of the solution, you're part of the precipitate.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 20th, 2009 at 02:44:33 PM EST
[ Parent ]
Mobile phone users cannot walk in straight line

In a report for the journal Applied Cognitive Psychology, experts said the results backed the findings of lab experiments.
They wrote: "We found that individuals walking while talking on a cell phone displayed inattentional blindness in a real-world situation.
"Even a task as practiced as walking can be disrupted by cell phone conversations. Although walking and talking on a cell phone on campus seems unlikely to be particularly hazardous, it can cause problems. A cell phone user walking slower and changing directions complicates the navigation task for everyone else."

Professor Hyman added: "Cell phone use causes people to be oblivious to their surroundings while engaged in even a simple task such as walking.

"Cell phone users walk more slowly, change directions and weave more often - and fail to notice interesting and novel objects. The effect appears to be caused by the distraction of a cell phone conversation, because people walking in pairs did not display the same range of problems. Something about the conversation seems to limit attentional capacity.

"If people experience so much difficulty performing the task of walking when they're on a cell phone, just think what this means when put into the context of driving safety. People should not drive while talking on a cell phone."



You can't be me, I'm taken
by Sven Triloqvist on Tue Oct 20th, 2009 at 04:14:46 PM EST
[ Parent ]
Yes - but can they walk and chew gum at the same time?
by det on Wed Oct 21st, 2009 at 02:46:26 AM EST
[ Parent ]
I think we are talking cerebrum rather than cerebellum ;-)

You can't be me, I'm taken
by Sven Triloqvist on Wed Oct 21st, 2009 at 04:54:09 AM EST
[ Parent ]
BBC - Newsbeat - New maps show population hotspots
New maps show population hotspots


If you're not part of the solution, you're part of the precipitate.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 20th, 2009 at 09:12:40 PM EST
[ Parent ]
 PEOPLE AND KLATSCH 

by nanne (zwaerdenmaecker@gmail.com) on Tue Oct 20th, 2009 at 10:21:24 AM EST


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