Tuesday, June 30, 2009
Recession hits immigrant business
By Jeremy Schwartz, AMERICAN-STATESMAN STAFF
Evelia Arrellano surveys the empty barber chairs with a worried look. It's 1 p.m. on a recent weekday, and she has yet to see a client at her salon, which also sells phone cards, compact discs and sodas to a cluster of mostly Mexican immigrants in the St. Johns neighborhood in North Austin.
She traces her salon's woes to hard times among Austin's immigrant workers, especially those in the hard-hit construction industry. "If they don't work, we don't work either," she said. "Things are getting worse. It's disillusioning. They say the economy is getting better, but it's not true."
Arrellano is feeling the effects of a recession that is hitting Austin businesses that cater to immigrants with a pronounced fury, according to interviews with more than a dozen managers, cashiers and business owners. With construction jobs dwindling, money is no longer flowing freely through Austin's immigrant community, hurting the many businesses selling NorteƱo records, phone cards, boots, groceries and other goods.
Click on the headline to read the rest of this story! This is only a small part of it.
Walter Ewing: Immigrants are not a fiscal drain
By Walter Ewing, Special to The Bee
As state and local governments grapple with budget deficits brought on by the economic recession, some are blaming immigrants – particularly undocumented immigrants. According to this flawed reasoning, if the tax contributions of immigrants in general, or undocumented immigrants in particular, don't cover the costs of the public services they utilize in a single year, then immigrants must be a financial "burden" on the majority of taxpayers.
However, by this measure, nearly all native-born children, retirees and unemployed workers also qualify as economic "burdens." A realistic accounting of the economic "value" of a person must include the contributions made over a lifetime as a worker, consumer and taxpayer.
Click on the headline to read the rest of this story! This is only a small part of it.
Family battles reality of immigration debate
By News-Journal staff
The debate over U.S. immigration policies has become personal for a Longview family. Linda Bischoff said Americans have forgotten the engraving on the Statue of Liberty: “Give me your tired, your poor, your huddled masses yearning to breathe free …”
She also said federal laws and lack of knowledge by the public have forced people seeking refuge to enter the United States illegally.
“I used to think, ‘Why don’t they just get a visa and come here legally?’ ” Bischoff said of illegal immigrants. “Now, after going through the endless process of paperwork and extreme cost and still not being guaranteed you’ll get approval, I understand why.”
Click on the headline to read the rest of this story! This is only a small part of it.
Updates to Google Apps Sync for Microsoft Outlook
Posted by Chris Vander Mey, Senior Product Manager, Google Apps
Get timely updates on new features in Google Apps by subscribing to our RSS feed or email alerts.
House prices continue to increase
Yesterday, the Bank of England produced monthly lending data. It showed three thing. First, net credit into the mortgage market was almost zero, but the number of mortgage approvals was up slightly. Second, lending to the corporate sector has collapsed. The decline was so dramatic that it could be described as apocalyptic. Finally, lending to the shadow banking system is up 50 percent year-on-year.
Today, we received two additional numbers. We had a first quarter GDP revision. It told us that the economy shrank much faster than originally thought. Then, we had the June house price index from the Nationwide. It showed that house prices are recovering quickly. Over the last 4 months, prices are up 3.6 percent. If you annual that rate, then prices are again growing at double digit rates.
In short, the data releases over the last two days tell us the real economy is tanking, credit conditions remain tight in the housing market, yet somehow the housing market is staging a recovery.
The only explanation is that home buyers are using spare cash balances to purchase homes. Why would they do that? Simply because they expect the return on housing to be higher than the return on deposits.
Behind this move into housing is inflation expectations and zero rates on deposits. The Bank of England's quantitative easing means that the writing is on the wall in terms of inflation. It is interesting that the uptick in house prices mirrors the uptick in the CPI inflation rate. Both started rising in February, which was the month that the BoE started printing cash. As for rates, there is little prospect of a turnaround to compensate for the expect loss in purchasing power.
The only thing holding back a massive jump in house prices is the lack of credit. However, if this should turn around, and banks begin to crank up lending, then we are in real trouble. The UK economy will hurtle uncontrollably into renewed bubble.
If this happens, everything will be in the wrong place; near zero interest rates; an exploding fiscal deficit, and government guarantees on banking lending. I shudder to think how the Treasury and the BoE would unwind this mess.
Recession worse than expected
ONS revise first quarter GDP downwards.
EPA Should Study Employment Practices At Green Groups?
Clearly the Equal Employment Opportunity Commission, Commission on Civil Rights and the Justice Department would be the appropriate federal entities to formally investigate this issue, but shouldn't EPA be the agency to raise it? Shouldn't EPA initiate some sort of study into the segregationist hiring practices of the vast majority of these groups. After all, isn't the employment environment at green groups just as legitimate an issue as other such issues? Quite simply, the vast majority of traditional, mainstream and grassroots NGO environmental groups do not hire Blacks in professional positions. How many of these groups also receive federal funds? If groups receive government grants and discriminate, shouldn't this trigger Title VI of the Civil Rights Act 0f 1964 regarding use of federal funds? Although tax-exempt groups are exempt from the provisions of Title VII employment discrimination (and the green groups know this), they are subject to losing federal funds for such discrimination under Title VI.
AAEA polled groups on their hiring practices in our Green Group Diversity Survey and the results were published in a Green Group Report Card. Only five of twenty five groups responded to the survey. They know they can ignore us. But would they ignore EPA? We want to hold hands and sing Kumbaya next to a camp fire and celebrate 'green everything' too, but it is hard for some of us to break out the acoustic guitar when we know blatant employment discrimination is occurring at most of the green groups. So someone needs to stand up for employment equality in groups proclaiming the virtue of their policies over those of other entities. We believe EPA should at least raise the issue of professional employment discrimination at the green groups. The agency has never raised the subject. At a very minimum, if groups do not correct this historical discrimination, they should not receive federal funds.
180TH CELEBRATION
Not Coming To Your Local Cineplex
This 2006 film is a bit dated (they actually believe the Democratic Party is going to turn things around), but worth a view nevertheless. One hopes Liberty News TV will do a follow-up on the emptiness and spinelessness of Barack Obama--his pandering to the Pentagon, bailout of corporations, and continuation of neoliberal economic policy--but for some odd reason I'm not holding my breath. Enjoy!
http://www.archive.org/details/LibertyNewsTVEpisode14
Monday, June 29, 2009
Griego: A move to integrate — not to assimilate
By Tina Griego, Denver Post Columnist
On Thursday, while President Barack Obama was meeting with lawmakers on immigration reform, about 300 people gathered in downtown Denver to talk about how to best integrate immigrants into American society.
Before I go any further, let me first take you back to City Councilman Paul Lopez's congreso last weekend, where people from his southwest Denver district spent three hours discussing their community's problems and what to do about them.
They rattled off issues like graffiti and illegal dumping and too much noise and not enough parking. I waited for someone to say, "illegal immigration," but no one did.
The American citizens, white and Latino, on that block all told me the same thing: The issue for them was not so much that their neighbor might be an illegal immigrant. The issue was that the neighbor was washing her laundry in a tub in the front yard and hanging wet underwear on rope strung from the porch to the tree to the fence post. The issue was that 14 people lived next door. The issue was that they could not communicate with their Spanish-speaking neighbors.
Click on the headline to read the rest of this story! This is only a small part of it.
Religious groups show support for immigrants
Religious groups draw attention to issues raised by Utah's SB81
By Clayton Norlen, Deseret News
Religious leaders of Salt Lake City, along with members of their flocks gathered at the Gallivan Center Friday evening to show support for immigrants and their families.
To welcome Unitarian Universalists from across the United States for general assembly meetings in Salt Lake City, a Day of Witness was held to raise awareness of the issues immigrant families are facing across the United States. Speakers at the event were critical of Utah's SB81, a bill that establishes new requirements for businesses that contract with the state to screen employees for legal presence status and calls for an immigration enforcement role for state and local law enforcement agencies.
Bishop Irish said that SB81 ignores due process and encourages racial profiling without providing immigrants the ability to contest charges.
Click on the headline to read the rest of this story! This is only a small part of it.
Proposal aims to remove barriers between immigrants, King County services
King County considers a proposal to direct county workers and the sheriff's office to not ask for immigration papers when people seek services and protection, or talk to law-enforcement officers. Supporters say the move would build needed trust between immigrants and local government.
By Lewis Kamb, Seattle Times staff reporter
Under a proposal before the Metropolitan King County Council, health facilities run by the county could not deny care based on immigration status, and sheriff's deputies could not ask people for immigration papers, or investigate, detain or arrest people for immigration violations.
Supporters say the move would reduce mistrust between immigrants and local government.
The proposal, they say, would help to safeguard against racial profiling, ensure that a big segment of the population feels safe enough to seek health care and allow more witnesses and victims of crime to go to the police without fear.
"We see this as something that really benefits the entire community, not just immigrants," said Shankar Narayan, legislative director of the ACLU of Washington.
Click on the headline to read the rest of this story! This is only a small part of it.
Meeting Bhutan in Oakland
by Ananta Gurung, co-founder of the Bhutanese American Community Center
You already know this. Oakland, where about half a million people speak more than 80 languages, is a magnet for immigrants. We've got people from Ethiopia, Japan, India, Mexico, Mongolia, Nigeria, Vietnam... the list goes on. There's a new addition. The latest arrivals are from Bhutan, a small (less than 15,000 square miles) south Asian country neighboring India.
If you've been following the news, then you probably know that about 60,000 Bhutanese of Nepali origin are being settled in the U.S. These Bhutanese have been living in refugee camps in Nepal for close to two decades due to an internal conflict in Bhutan. Six other countries -- Australia, Canada, Norway, Netherlands, New Zealand and Denmark -- are also taking in 10,000 refugees each.
Ananta Gurung, the director of the Bhutanese American Community Center (BACC), a secular not-for-profit-group, says that the population of the Nepali-Bhutanese in Oakland will see a sharp increase in the coming year due to the resettlement deal. Right now, there are about 400 Bhutanese living in Alameda and Oakland.
Click on the headline to read the rest of this story! This is only a small part of it.
Republicans Focus on Guest Workers in Immigration Debate
By JEFF ZELENY and GINGER THOMPSON
WASHINGTON — President Obama told a bipartisan group of lawmakers on Thursday that Congress should begin debating a comprehensive immigration plan by year’s end or early next year, but Republicans said they would support a measure only if it included an expansion of guest worker programs.
Leading the call for that provision was Senator John McCain of Arizona, who told Mr. Obama he would have to take his “political lumps” and stand up to labor unions that oppose the idea. The president praised Mr. McCain for paying “a significant political cost for doing the right thing.”
In the State Dining Room, Mr. Obama met with about 30 lawmakers for the first substantial discussion on immigration since he took office.
Click on the headline to read the rest of this story! This is only a small part of it.
NeighborWorks Board Agencies Join NeighborWorks Week Volunteers to Landscape Low-income Property in DC
If you're having trouble viewing the video below, see it on our YouTube Channel at http://www.youtube.com/watch?v=LhA64EKLGf8&feature=channel_page
Nat'l Black Chamber of Commerce 17th Annual Convention
"Change Has Come"
July 22nd - 24th, 2009
The Fairfax at Embassy Row
Washington, DC
Agenda
Registration Information
Hotel Information: The Fairfax at Embassy Row, 2100 Massachusetts Avenue, Washington, DC 20008. Special NBCC hotel rate: $189.00 for singles/double. (Rate available until June 30, 2009)
Hotel Reservation or call: (202) 293 - 2100
Sponsorship Information
Exhibitors' Table Information
Lending to the shadow banks growing at 50 percent a year
So, who is getting all the new loans? It is the shadow banks. According to the latest data from the Bank of England, growth rate of bank credit to "other financial institions is up 50 percent year-on-year. The flow of new loans slowed a little in May, but it still amounted to almost ₤3 billion.
However, here is a curious thing. Since the crisis began in the summer of 2007, cumulative lending by UK high street banks to the shadow banking sector is now approaching ₤400 billion. That is approximately the same amount of mark-to-market losses that the Bank of England estimated that UK banks have suffered since the crisis began.
Could there be a connection?
The Queen needs more cash
Why isn't she enjoying a spot of deflation like her subjects?
The crash is back on
Why? House prices can only rise if there is a sufficient flow of net credit into the market. This chart, which tracks new loans minus repayments, tells us that credit into the market has stalled.
Only when net flows of secured lending begins to seriously increase will house prices begin to rise again. In May, net lending was about as low as it could be without turning negative.
I wonder what the jokers in Westminster and Threadneedle street made of these numbers? Despite all the crazy bailout schemes, guarantees and liquidity those banks still won't lend to the housing speculators.
The housing recovery takes a break
A pattern of deception
The authentic voice of despair
Here are a few choice quotes from an archetypal miserablist:
"Market dogma is exposed as myth. Where is the new vision to unite us?With religion outmoded and society fragmented, it will require a different kind of moral narrative to inspire change."
"We must correct a generation of abdication to the market of all measures of value."
"The possibility of change – of radically reforming the institutions that have so betrayed trust – is slipping between our fingers."
The problem is a near sense of desperation as to how this is to come about, as current prescriptions offered by all political parties are emptied of meaning and credibility.
"Every other modern narrative – communism, socialism, even those that were destructive, such as neoliberalism and fascism – laid claim to a version of the kingdom of God, a better world that would nurture a better human being. They were all narratives of redemption and salvation. All that we have now is apocalypse, and it is paralysing."
This last quote is a true gem of deception. Notice the distinction between the four "modern narratives". Only neoliberalism and fascism are destructive. Communism and socialism get a free pass. Would the Kulaks see it that way?
Oh, woe, woe, thrice woe! Could the source of this misery be that New Labour are about to face the electorate?
UK Government will not sign World's First Treaty on Access to Information
29 June 2009
Freedom of Information campaign groups today criticised the UK Government’s decision not to sign the world’s first binding treaty on access to official information. Despite the Prime Minister’s recent statement promising greater freedom of information , the Government has confirmed it will not currently sign the Council of Europe Convention on Access to Official Documents.Read the full press release here.
The Campaign for Freedom of Information and Access Info Europe said there would be real benefits if the UK signed the Convention. First, it would encourage European countries with no or weak access to information laws to introduce effective legislation. Second, it would make it more difficult for any government in the UK to weaken the UK FOI Act.
“We’re concerned that one possible reason behind the Government’s decision is that it intends to introduce new exemptions to our FOI Act, which may not be compatible with the Convention. The Prime Minister recently announced that the Government would introduce two new exemptions to the Act for cabinet documents and communications with members of the Royal Family. In both cases the information would be excluded from the scope of the FOI Act altogether for 20 years, an extremely retrograde step” said Katherine Gundersen of the Campaign for Freedom of Information.
On 24 June the UK Government stated that it “does not intend to sign the Convention at this stage” adding that it “does not rule out signing in the future”. An official statement from the Ministry of Justice observed that “The UK's Freedom of Information legislation has been a success story, providing a regime for freedom of information that is among the most open and rigorous in the world. It already goes further than the standards of the Convention in a number of areas.”
“This is clearly a spurious argument, because nothing stops any country having a higher standard than the Convention. The reluctance to sign the treaty sets a bad example for the new democracies of central and eastern Europe”, said Helen Darbishire of Access Info Europe.
Convention on Access to Official Documents
Explanatory Report to the Convention
HITTING THE TRAIL
Be sure to watch the video that is posted as well!
FOI Disclosure Stories 22 - 28 June 2009
“Britain considered dropping millions of poisoned darts on German troops in the final stages of the Second World War, secret files made public have revealed. Created by British and Canadian scientists, the darts could have been packed into bombs and released from the air with the potential to kill or incapacitate anyone within 10,000 sq yds. Documents released by the National Archives under the Freedom of Information Act include letters and notes collected over four years that demonstrate how close the Government came to deploying the deadly darts.”
CBT: Roads programme as much as £3.9bn over budget - CNplus.co.uk 25/06/09
“The Highways Agency’s road building programme is ‘significantly over budget’, with three quarters of the roads completed in the past year more expensive than expected. According to Government figures obtained under Freedom of Information by the Campaign for Better Transport, the agency’s programme – including all roads finished in the past 12 months, those under construction, and those in the planning stages – could be as much as £3.9 billion over budget.”
Top BBC bosses' expenses revealed - BBC 25/06/09
“BBC director general Mark Thompson claimed more than £2,000 when he cut short his holiday to deal with the row over the Ross/Brand lewd calls in 2008. The figure was one of a number of details to emerge after the expenses of some top BBC executives were published. The corporation revealed the figures in response to Freedom of Information requests and pressure for more clarity. The expenses and salaries of the BBC's 50 top-earning managers were also revealed on the website on Thursday.”
Taser mania! Police zap sheep, bulls, dogs ... even themselves - The Daily Mail 23/05/09
“Blundering police have turned their Tasers on stray dogs, runaway sheep and even accidentally on themselves, it was revealed yesterday. Figures released under freedom of information laws highlight a catalogue of errors by officers armed with the 50,000-volt stun guns. In the most serious case, a firearms officer shot a frail 89-yearold man after he threatened to kill himself.”
Scotland
Oil depots fail blaze safety checks - The Scotsman 28/06/09
“Serious failings in safety measures meant to reduce the risk of major explosions at Scotland's fuel oil depots have been uncovered by government inspectors. Inspectors from the Scottish Environmental Protection Agency (Sepa) discovered that none of the nation's nine oil depots ‘fully complied with safety recommendations made after the catastrophic explosion and fire at the Buncefield fuel depot in Hertfordshire in 2005. The inspection reports, obtained under Freedom of Information rules by Scotland on Sunday, reveal that inadequate safety measures at several depots mean there is a ‘high’ risk of a major environmental accident if a leak occurs.”
Cameron plans to open up information and set public data free
INFORMATION FOR ACCOUNTABILITYRead the full speech here.
We have already announced some of the ways in which we will put information - and thereby power - in people's hands.
We will publish every item of government spending over £25,000.
It will all be there for an army of armchair auditors to go through, line by line, pound by pound, to hold wasteful government to account.
We will require the publication of crime data online in an open way so that communities can build their own crime maps, see what crimes are being committed, where and at what time and hold their local police to account if they're not doing something about it. And we will require all local councils to publish information like meeting minutes and local service data in a standardised format.
This will give people the power to hold local government to account, and to develop new public services like a local version of TheyWorkForYou, or Bebo applications that tell teenagers when the local sports centre is open as well as the power to see which councils are providing the best value for money, so residents can demand the same from their own. But today we're announcing further steps towards true freedom of information.
SETTING DATA FREE
In Britain today, there are over 100,000 public bodies producing a huge amount of information.
This ranges from school league tables to train timetables; from health outcomes to public sector job vacancies. Most of this information is kept locked up by the state. And what is published is mostly released in formats that mean the information can't be searched or used with other applications, like online maps. his stands in the way of accountability.
Let me give you just two examples.
Today, many central government and quango job adverts are placed in a select few newspapers.
Some national, some regional. Some daily, some weekly.
But all of them in a variety of different publications - meaning it's almost impossible to find out how many vacancies there are across the public sector, what kind of salaries are being offered, how these vary from public sector body to public sector body and whether functions are being duplicated.
Remember this is your money being put forward to give someone a job - and you have little way of finding out why, what for and for how much.
Now imagine if they were all published online and in a standardised way. Not only could you find out about vacancies for yourself, you could cross-reference what jobs are on offer and make sure your money is being put to proper use. Or what about patient outcomes in the NHS?
Some of the most important information you'll ever need to know, how long your Dad will survive if he gets cancer, your chances of a good life if you have a stroke, all this is out of your hands.
Now, again, imagine if this information was in your hands. You'd be able to compare your local hospital with others, and do something about it if it wasn't good enough.
Choose another hospital. Voice your complaint to a patient group. Make change happen.
All this data which would help people in this country hold the powerful to account - it's all locked away in some vault. And it's only getting worse.
Next week Ed Balls will publish proposals for a new report card, replacing league tables. That will reduce the amount of information being published, and reduce parent power to hold their school to account.
We're going to set this data free. In the first year of the next Conservative Government, we will find the most useful information in twenty different areas ranging from information about the NHS to information about schools and road traffic and publish it so people can use it.
This information will be published proactively and regularly - and in a standardised format so that it can be 'mashed up' and interacted with.
What's more, because there is no complete list that can tell us exactly what data the government collects, we will create a new 'right to data' so that further datasets can be requested by the public.
By harnessing the wisdom of the crowd, we can find out what information individuals think will be important in holding the state to account.
And to avoid bureaucrats blocking these requests, we will introduce a rule that any request will be successful unless it can be proved that it would lead to overwhelming costs or demonstrable personal privacy or national security concerns.
If we are serious about helping people exert more power over the state, we need to give them the information to do it. And as part of that process, we will review the role of the Information Commissioner to make sure that it is designed to maximise political accountability in our country.
Sunday, June 28, 2009
'Borat' and a new film on Antisemitism
It helped that Mr. Gliksberg did a Q & A after the screening. Before learning his intent directly, the film seemed disjointed and self-indulgent. Gliksberg wants it seen by non-Jews; he says that he's bringing a mirror to Christians, helping them to see the conscious and subconscious elements of prejudice in how they view Jews. (He deals only with Christian antisemitism, nothing about Muslims or the Arab-Israeli conflict.)
The title comes from the final episode in Gliksberg's journey through Europe and the USA when he confronts neo-Nazis in Germany. He is cordial, seemingly almost becoming friends with an old man named Mahler, on trial for Holocaust denial, a criminal offense in Germany. (Mahler was, in fact, recently convicted.) One of his supporters tells Gliksberg that he cannot look a Jew in the eye, because of the pure evil that lurks behind his gaze. Gliksberg plays with the Nazi, even good-naturedly embracing him as he encourages him to look. But the man backs away in disgust and anger.
The Israeli's foray into Germany also involves a visit to a couple with a teenage daugher, all of whom were ex-neo-Nazis. The interaction with the girl is especially illuminating; it becomes clear that the “movement” had given them a sense of identity and belonging – more important than the actual ideology of hate. She recalls the movement songs and activities with genuine longing.
Gliksberg began his film with his visit to a Passion Play in Poland, where members of the mob and the Sanhedrin are clearly identifiable as Jews responsible for the persecution of Jesus. The Poles he interviews profess no antipathy toward Jews, but some reveal their belief in stereotypes about how rich, clever and clannish Jews are.
By way of contrast, a Passion Play at a rural American pentecostal church, where worship includes “speaking in tongues,” provides no such antisemitic imagery. In fact, the congregation enthusiastically welcomes their guest from Israel and the pastor professes his love for Israel and the Jewish people.
Toward the end of his visit, however, the pastor is caught on camera in an outburst against Israelis for being rude – in the way that Israelis often are because of their habit of directness. The pastor concludes that in the future the “Jewish people” would miss “Christian money” if this coarseness deters Christian tourists from coming in great numbers. This bursts out as a sudden stream of consciousness, with the minister ruminating at the end of a long day, too tired perhaps to filter his thoughts.
Then I saw “Borat” on TV over the weekend. This farce by the incredibly talented English-Jewish comic and actor, Sacha Baron Cohen, includes an outrageous dose of antisemitism in the plot. Cohen plays a faux-TV journalist from Kazakhstan, who is incredibly primitive, crude and bigoted. If you're familiar with Hebrew, you may notice that much of his faux-Kazakh dialogue is Hebrew. (Cohen was a member of the Labor-Zionist youth group Habonim Dror and spent a year in Israel on kibbutzim.) His Scottish fiancee (or wife by now) converted to Judaism and says that she is quite observant.
I. Howard Marshall on the Jewish Dispersion in New Testament Times
We all know what this means....
(Many thanks to Iggy for sending this image to me. If anyone else sees anything interesting, please send it me here. I need all the help I can get)
Saturday, June 27, 2009
Keep on doing what you are doing
When the BoE became fully independent, the government gave it an inflation target. It said to the bank "go chase down the consumer price index. Make sure it doesn't increase by more than 2 percent a year". Ominously, the government didn't say keep asset prices under control and avoid speculative bubbles.
The BoE happily went along with this new target. Keeping inflation under control would be easy. Moreover, the Bank added an air of modesty to their objection about preventing speculation. It echoed the claim by Greenspan that it could not properly identify bubbles. Speculation was something that could only be ascertained once the crash had actually happened, and then it would be too late.
For about eight years, the BoE claimed that it had beaten inflation. It met the target and told the rest of us that everything was under control. House prices, it occasionally acknowledged, were increasing at double digit rates. So too was the money supply, but this didn't matter because the CPI was nailed down. Furthermore, the BoE managed to do this with historically low interest rates. In short, they implicitly told us "sit back, relax and if you feel like it, take out a loan."
However, the truth was that the CPI was declining because of the extraordinary increase in the world supply of cheap manufactured goods, mainly coming out of China and other emerging market economies.
During these years, the CPI should have been negative; a fact that the BoE were happy to ignore. Domestically determined prices were increasing sharply. (If you want proof, just take a look at the price of UK rail tickets or the council tax.) Putting a cap on this hidden inflation would have required higher interest rates, which would have put an end to the housing bubble.
The rest of the story we know. Throughout the decade, Banks were taking on too much risk, households were borrowing silly amounts of money and the housing market was out of control. This sorry mess hit the wall in August 2007. So far, the UK taxpayer has been forced to pump in 90 percent of GDP into the financial sector, just to prevent it from collapsing.
Have policy maker learnt anything from this dreadful experience? It seems not. Later this month, the Treasury will publish a White Paper on financial services. In principle, this offers an opportunity to extend the BoE's target to stabilising asset prices and preventing bubbles.
However, for the New Labour radicals that manage the Treasury, this idea is too extreme. They want to keep things pretty much as they are. The BoE will continue to target the CPI and asset prices can do what they want. In principle there is nothing to prevent a recurrence of the current crisis.
It is very much a case of "keep on doing what you are doing". So, is everyone ready? We have a one way ticket back to Bubbleville.
S&P thinks that Britain's national debt will quadruple.
Take for example Standard and Poor's, who think the UK's national debt will quadruple. Personally, I don't think that will happen. The Bond market will act as a constraint. Interest rates will rise, forcing the government to cut expenditures and increase taxes.
From today's Telegraph.....
Britain's national debt will quadruple to peaks only ever seen in the wake of the Second World War unless the Government takes drastic steps to address the pensions and ageing crisis, Standard & Poor's has warned.
The ratings agency has calculated privately that the UK's public sector debt could quadruple from its current level of just over 50pc of economic output to 200pc or above within the next four decades as the cost of servicing public sector pensions, ballooning social security costs and healthcare burdens becomes overwhelming, The Sunday Telegraph has learned.
The warning is doubly sobering since S&P last month placed Britain's debt on to "negative outlook" – an explicit signal that it could soon be downgraded.
A talent for making losses
Over the last two years, the UK banking sector generated catastrophic losses. According to the Bank of England's latest financial stability report, UK banks have accumulated losses amounting to almost ₤400 billion. Those losses were calculated as the difference between the mark-to-market value of assets held on bank balance sheets compared to their "original" book value.
As the chart suggests, banks have continued to identify more losses despite the unprecedented assistance from the taxpayer. It doesn't look like it is over yet. Banks still need to come clean and admit to the full extent of their wealth destroying activities.
The banking crisis pushed the economy into recession and required a bailout amounting almost 90 percent of GDP. Yet, the executives who run these enterprises continue to earn multi-million pound salaries. The sector is still awash with extravagent bonuses.
In the past, talent was the justification for these huge compensation packages. Gifted people deserve extraordinary wages. But looking over the wreckage of the UK financial system, these jokers only ever had a talent for making huge losses for their shareholders.
No more ethical foreign policy?
Britain’s strictures to foreign governments are being mocked from Iran to the Turks and Caicos Islands, as world leaders seize on stories about MPs’ bloated expenses claims as evidence of moral decay in the UK.
Accounts of MPs billing the taxpayer for duck houses and moat cleaning have been lapped up around the world and have posed a problem for British diplomats who have previously been vocal in criticising corruption.
Mark Malloch-Brown, the foreign office minister, deleted sections of a speech he gave in Mozambique this month, fearing that his comments on higher standards of governance might be greeted with scorn. His fears may have been justified, judging by the apparent delight being shown by leaders in recent days over the Westminster expenses scandal.
Friday, June 26, 2009
Why fiscal stimulus packages don't work
Since August 2007, the US economy has experienced two fiscal stimulus packages. The first was under Bush in April 2008; the second was under Obama in January 2009. The idea behind both packages was the same. Cut taxes and increase government spending in order to put money in consumer's pockets, who would then go out and buy stuff and sustain economic activity.
However, US consumers have other ideas. Instead of spending, they have decided to save. The US savings rate has jumped to almost 7 percent. Back in the bubble days, US household savings rate had fallen to almost zero.
The jump in savings is even more surprising given that US interest rates are close to zero. US Households must be very keen to save.
Both stimulus packages can be clearly identified in the US savings rate. The first peak is Bush. The recent upswing in savings, which starts in 2009, is due to Obama.
So why are US consumers suddenly saving? Everyone knows that the current deficit is unsustainable and therefore taxes will soon have to increase dramatically. The current increase in household incomes are temporary and they will soon fall when higher taxes kick in. Consumers are trying to stabilize their income over time and building up their assets in anticipation of the future federal clawback.
Economists call this Ricardian equivalence, but that is just a fancy name for a simple idea. Consumers instinctively know that a deficit must be paid back and that fiscal stimulus packages never work.
The irony is that we have known this since the days of David Ricardo, who first explained this principle. He lived during the 19th century. So why are we having to learn this lesson again?
Obama is good for gun sales
Gun sales have rocketed since Obama moved into the White House. Strange but true....
Michael Moore has a new film
I don't agree with his politics, but I do enjoy the movies. I will definitely be going to see this one.
SHEPHERDSTOWN WV STREET FESTIVAL
Now that Yuengling is distributed in West Virginia, we're going to make our debut at our first festival in the Mountain State.
On Saturday, June 27th, the streets of historic Shepherdstown will buzz with the Fifth Annual Shepherdstown Street Fest. From 10 a.m. to 9 p.m. residents and visitors will enjoy arts, crafts, live music, food, and free activities in the heart of town – and thanks to Jefferson Distributing Co., one of our new West Virginia wholesalers, when they need refreshment they can step into the German-style beer garden and quench their thirst with some products from Yuengling Brewery.
Shepherdstown is the oldest town in West Virginia, so it seems fitting that Yuengling, “America's Oldest Brewery,” is going to help visitors have a wonderful time while they listen to local and regional bands, including The Sean Cookus Quartet, Forrest Brown's Dirty Little Secret, The Speakeasy Boys, The Giants of Tiny Town, and TMD. And it's a family-friendly event, with a variety of free children’s activities.
For directions and parking information, visit www.shepherdstownstreetfest.org. We hope to see you there.
Its all going wrong
Zero rates didn't work; government guarantees didn't help and printing cash has failed. Perhaps it is time to try something really radical. Perhaps, running the economy prudently by cutting the fiscal deficit and restoring monetary stability might encourage banks to lend.
So how would this radical departure from New Labour orthodoxy work? Firms need to have stability in order to invest. Banks need to know that firms will continue to be profitable over the long run to ensure that loans are repaid.
Big deficits and easy money only serve to create instability and destroy confidence. Hence, the collapse in corporate lending.
Energy bills rise by 23 percent in a year
The price rise between the first quarter of 2008 and the first quarter of 2009 included 19.7pc real-terms increases in domestic electricity charges, 34.8pc for gas and 28.9pc for coal and smokeless fuel.
The Quarterly Energy Prices document showed that the rate of overall increase in fuel prices had fallen since the previous publication in March, when it stood at 34.3pc.
The figures, compiled by the Office for National Statistics, showed that the average standard credit electricity bill in 2008 was £405 – £22 up on the previous year. Average direct debit and prepayment bills increased by £27 to £376 and by £23 to £424 respectively.
Meanwhile, the figures showed the average standard credit gas bill rose by £18 over average 2007 bills to £570. Average direct debit bills increased by £28 to £525, and prepayment
NeighborWorks and NHS of South Florida Join NBA All-Stars
Mourning, Wade and Arau met with NHSSF’s counselors and clients and visit local businesses in the Miami Gardens neighborhood. The goal of the foreclosure prevention campaign is to raise awareness of the foreclosure crisis and the free resources available to homeowners in danger of foreclosure, including the government’s Making Home Affordable Program.
For more information, read today's Miami Herald story about the event.
HANG LOOSE GUITAR PROMO
Thursday, June 25, 2009
AAEA Defends ACES in Essence Magazine Blog
She writes:
"In the opening remarks of his news conference on Tuesday, President Obama mentioned a climate change bill working its way through the House of Representatives, hailing it as “legislation that will finally spark a clean energy transformation that will reduce our dependence on foreign oil and confront the carbon pollution that threatens our planet.” One component of the legislation, called the Waxman-Markey bill, requires large utilities to produce more electricity from renewable sources including wind, solar and geothermal power. The President says this will lead to the development of the much-touted green economy, creating millions of new jobs."AAEA President Norris McDonald supports the legislation in the article and Roger Innis of CORE opposes the legislation.
See Also: Huffington Post
Puncturing myths - Immigrant assimilation does happen
UNION-TRIBUNE EDITORIAL
It's the strangest thing. Much of the heat generated by the immigration debate comes from myths masquerading as facts, things which people are passionate about and know to be true but actually are false.
As when some people say immigrant birthrates in the United States are going up, but all the available research points to newcomers having smaller families for economic reasons. Or when some say immigrants aren't learning English when, actually, native-language retention is the real challenge. Or when we say illegal immigrants don't pay taxes when, actually, they pay a bundle in sales taxes and property taxes.
Also on the list: the assumption that recent waves of immigrants, especially from Mexico and elsewhere in Latin America, aren't assimilating and that they and their children usually wind up stuck in a permanent underclass because they lack wealth, skills and education.
Again, simply not true, according to a timely and important new study from researchers Michael J. White and Jennifer E. Glick, who examined the issue for the Russell Sage Foundation. The study – “Achieving Anew: How New Immigrants Do in American School, Jobs, and Neighborhoods” – takes aim at several misconceptions about immigrants and how they fare in U.S. society. According to the study, the poverty gap between immigrants and natives decreased from 1994 to 2004 and the poverty level for immigrants fell over the entire decade; immigrants who arrive in the United States as children and attend U.S. schools tend to achieve parity with natives at the same socioeconomic status; and, over the generations, children of immigrants and immigrant children do as well as the children of U.S. natives unless they encounter obstacles such as poverty or discrimination.
And here's a troubling surprise. The researchers found that adults who were born in the United States to immigrant parents were more likely to have a college degree than adults who were in the third generation.
This sort of finding challenges the conventional wisdom that the longer an immigrant family stays in the United States, the better off it is. In some respects, that's true. No matter what some folks believe, assimilation happens. And when it does, immigrants are invariably better off. But there are also some bad habits that people pick up living in the United States, such as taking for granted the value of an education.
Studies like this are extremely important, even if many Americans aren't ready to accept all of their conclusions. The immigration debate already has plenty of fear, division and animosity. What it could use more of is facts.
And who knows? If those facts are given a fair hearing, we might just get beyond a lot of the emotion surrounding the immigration issue and get closer to a viable solution. A great country deserves no less.
Teens Tell Their Families’ Stories of Coming to America
by Extra News
Forty-two Chicago high school students from immigrant families will gather at DePaul University a week before Independence Day to participate in an innovative oral history project, called “In Our Own Words.” The project will challenge them to explore who they are through the stories of their families’ diverse journeys to America.
Nominated by public and private high schools across the city, the sophomores and juniors will engage in a series of exercises led by DePaul educators to discover and tell their families’ stories on the university’s Lincoln Park Campus in Chicago through June 27.
The program targets academic achievers from low-income backgrounds who are immigrants, or the children of immigrants, from a wide range of Latin American, African, Asian and Eastern European countries. This year’s group speaks 11 languages in addition to English. The program is designed to give students the skills necessary to understand and embrace their family histories without letting their backgrounds become stumbling blocks for their continued academic success.
Click on the headline to read the rest of this story! This is only a small part of it.
Apps Status Dashboard goes global in 24 new languages
Today we're taking the next step and making the Dashboard available in 24 new languages. Take a look at the status of our Apps in EspaƱol or in ę„ę¬čŖ. Our announcements on the Dashboard will be available in all supported languages, and the language you see will correspond with your settings and preferences. There may be times when we'll give you a link to additional details in English or a smaller subset of languages in the interest of communicating as quickly as we can, but you'll always find an announcement about the current status of our Apps products in the language you select.
The Dashboard is now available in the following languages: English, Czech, Danish, German, Spanish, Finnish, French, Hindi, Hungarian, Indonesian, Italian, Japanese, Korean, Dutch, Norwegian, Polish, Portuguese, Russian, Swedish, Thai, Turkish, Ukranian, Vietnamese, Simplified Chinese, and Traditional Chinese.
We encourage you to check out the Dashboard and keep it handy for the next time you want to check on the performance of our Apps.
Posted by Matt Drake, Software Engineer
Get timely updates on new features in Google Apps by subscribing to our RSS feed or email alerts.
Obama, lawmakers to discuss immigration issues
by Tyche Hendricks, Chronicle Staff Writer
President Obama plans to sit down today with congressional leaders for the first serious discussion about the thorny issue of immigration policy since he became chief executive.
The meeting is likely to cover the issues of legalizing illegal immigrants, enforcing immigration law, accommodating future immigrants and, some analysts hope, incorporating them into American society.
Obama has voiced support for comprehensive immigration reform, and aides say he hopes this initial conversation will lead to a more substantive debate later in the year.
Click on the headline to read the rest of this story! This is only a small part of it.
Bankers sod off
I wish someone would do something similar with a "New Labour, sod off" theme.
Bank of England extends its dollar credit lines
The temporary reciprocal currency arrangements (swap lines) between the Federal Reserve and other central banks have been extended to 1 February, 2010. This extension applies to the swap facility agreements between the Federal Reserve and the Bank of England.
The Bank of England, the European Central Bank (ECB), and the Swiss National Bank are today announcing their intention to continue conducting US dollar liquidity-providing repo operations at terms of 7 and 84 days during the third quarter of 2009. In light of the generally reduced use of these operations, the central banks listed above intend to discontinue the current 28-day repo operations at the end of July.
We aren't out of the woods yet.
What is going wrong with corporate lending?
Why? Even during the boom, UK Banks didn't like lending long-term to UK firms. It is an aversion that goes back well over a century. Back in the late 19th century, banks preferred to finance trading activities. More recently, personal credit and mortgages have been the preferred option.
The quality of collateral is always a problem with firms. In the event of a default, it is always much easier to sell off a repossessed home rather than a warehouse full of widgets.
This raises a troubling question for the current "boost credit at all costs and inflate the deficit" strategy of New Labour. Lets start with the deficit. Everyone knows it is far too big. We also know that there will be massive expenditure cuts once the election is over next year. This means that in the second half of 2010, the UK will almost certainly hit another recession. Therefore, the Banks are being very prudent avoiding the corporate sector.
Monetary policy is also an incoherent mess. The central bank claims it is trying to prevent deflation, yet inflation has been above target throughout this crisis. It has tried to lower interest rates by printing money. However, financial markets had other ideas. Reflecting higher inflationary expectations, long term rates are beginning to creep up. And despite all the monetary innovations and experiments, credit to the corporate sector is still weak.
A better strategy would be to return to economy to a path that ensures macroeconomic stability. This means cutting the deficit and putting an end to the zero-rate monetary madness of the Bank of England. The corporate sector needs long term stability, not short term fixes that New Labour think will help them during the next election.
Go, Merv, Go
"The scale of the deficit is truly extraordinary".
Mervyn has gone for walk. In New Labour terms, he is "off message", talking about expenditure cuts and deficit reduction.
Meanwhile, poor Gordon can't get his figures right.
What a sorry mess....