Monthly Archives: February 2013

France freezes spending to hit EU targets as slump deepens

"France is to freeze spending on defence, higher education and research in a frantic bid to meet European Union deficit targets this year, tightening fiscal policy yet further as the country slides into deep slump. The severity of the downturn has caught officials by surprise. Markit’s survey data for French manufacturing and services fell to 42.3 in February, plunging at the fastest rate since the financial crisis in early 2009. Anything less than 50 signals contraction. Markit warned that the country may be tipping into a 'downward spiral' as sliding confidence causes businesses to delay spending." Continue reading →

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Tens of Thousands Protest in Spain (as Santa Claus dies)

"On Saturday, tens of thousands marched in cities throughout Spain to protest deep bankster driven 'austerity' measures taken by the government. The people are clearly fed up. The sad part of this is that most have no clue as to what are the proper measures that should be taken to reverse the deteriorating economic situation. The only way Spain gets out of its deteriorating situation is by cutting the red tape that makes it difficult for businesses to operate, and to also cut taxes and government spending, so that the country moves away from its current bureaucratic mess and closer to a free market that can spur energy and creativity." Continue reading →

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Top Spanish official in graft scandal

"A former treasurer of Spain’s ruling People’s Party (PP) hid away his wealth in a Swiss bank account. Court documents from an on-going judicial investigation into former PP treasurer Luis Barcenas revealed the account held up to €22 million, reports Reuters. The party, along with the opposition socialists, has helped govern the nation for the past three decades. In 2011, the conservatives won the general elections and unseated the socialists. Barcenas was the People's Party financial chief for 28 years until 2009 when he became the focal point of an investigation for allegedly accepting bribes from businesses vying for lucrative government contracts." Continue reading →

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Investigation ordered after Spanish politicians got ‘salaries’ from private companies

"Spanish Prime Minister Mariano Rajoy ordered Monday an internal investigation into the finances of his centre-right Popular Party which was shaken by allegations of under-the-table payments to party officials. The centre-right newspaper El Mundo reported Friday that senior members of the party, which Rajoy has led since 2004, had received undeclared salaries, mainly from private companies, over a 20-year period. Citing unnamed former members of the Popular Party leadership, the newspaper said the party’s former treasurer Luis Barcenas distributed envelopes containing thousands of euros to party officials on top of their official salaries." Continue reading →

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New Nationalist Government of Japan Stokes Tensions with China

"Abe wants to lead the aging and insecure Asian economic power back to its former greatness and, most of all, to rid it of its unpopular 'postwar regime.' The premier wants to return Japan to its former position as a 'beautiful country,' which is also the title of a book in which he describes his vision for the nation's future. Now Abe wants to quickly increase defense spending. He is expected to buy surveillance drones from the United States soon in response to China's unveiling of eight new unmanned aircraft at an aviation show in November." Continue reading →

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Japan Ramps Up its Monetary Race to the Bottom

"So, the model for Japan today is their version of the New Deal. I'll assume that Japanese politicians will ignore that connection between easy money, inflation and war, and forget that such policies ended rather badly for the Japanese in 1945. LRC's own Mike Rogers reports from Tokyo that 'Japan's Debt Explosion [is] Coming Up'. Earlier, Rogers wrote that even the monied upper classes are starting to worry. Standards of living continue to fall or go nowhere." Continue reading →

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In China, Widening Discontent Among the Communist Party Faithful

"Barely two months into their jobs, the Communist Party’s new leaders are being confronted by the challenges posed by a constituency that has generally been one of the party’s most ardent supporters: the middle-class and well-off Chinese who have benefited from a three-decade economic boom. Ordinary Chinese buy into a grand bargain: the party guarantees economic growth, and in exchange the people do not question the way the party rules. Now, many whose lives improved under the boom are reneging on their end of the deal, and in ways more vocal than ever before. Their ranks include billionaires and students, movie stars and homemakers." Continue reading →

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China Accounts For Nearly Half Of World’s New Money Supply Since 2005

"After having less than half the total US deposits back in 2005, China has pumped enough cash into the economy using various public and private conduits to make even Ben Bernanke blush: between January 2005 and January 2013, Chinese bank deposits have soared by a whopping $11 trillion, rising from $4 trillion to $15 trillion! We have no idea what the real Chinese GDP number is but this expansion alone is anywhere between 200 and 300% of the real GDP as it stands now." Continue reading →

Continue ReadingChina Accounts For Nearly Half Of World’s New Money Supply Since 2005

China ousts police chief ‘who owns hundreds of houses’

"A Chinese police chief has been sacked after reports he owned hundreds of houses and a false identity card, state media said Wednesday in the latest scandal to fuel public outrage over corruption. Zhao Haibin was stripped of his public offices for 'engaging in business deals using a fake identity card', the state-run Xinhua news agency reported, citing the Lufeng city government in the southern province of Guangdong. The case is the latest of a series involving officials owning multiple houses with different identity cards and residence permits." Continue reading →

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Chinese revolt over government plan to ban BBQ in order to fight epic smog problem

"China web-users were furious Thursday over plans to tackle pollution with a ban on barbecues, wryly asking if Beijing would stamp out fried food and normal bodily functions in its war on smog. The controversial measure is being explored as Beijing aims to confront the heavy pollution which has choked large swathes of the country in recent weeks. State media said Wednesday that the country’s environmental watchdog had issued draft guidelines advising major cities to adopt legislation banning 'barbecue-related activities'. Barbequed food is a favourite dish in China, particularly lamb skewers, a speciality of the north-western region of Xinjiang." Continue reading →

Continue ReadingChinese revolt over government plan to ban BBQ in order to fight epic smog problem