Thursday, March 20, 2008

The Socialist Party
Annual Conference

Socialist Party Head Office, 52 Clapham High St, London SW4 (nearest tube:Clapham North).

Friday 21 March 10:30–17:30. Saturday 22 March 11:00–16:30.

1904 - 2008 Over a century of socialist activity.

About us - Our Principles

What is Socialism ? - F.A.Q. - What is Capitalism?

website: http://www.worldsocialism.org/spgb/index.html

journal: socialist standard
website: http://www.worldsocialism.org/spgb/standardonline/

Visitors welcome at all Socialist Party meetings.


No Silver Lining

Does every cloud have a silver lining ? Will falling house prices help those to get the first time buyers on the rung of the property ladder ? Apparently not .

Homeowners and those hoping to step onto the property ladder have both been dealt a blow after a senior Bank of England policymaker warned that house prices will fall but the impact of the credit crunch means affordability won't improve.

The global economic environment has become tougher, forcing lenders to become more cautious about extending mortgages to borrowers . First-time buyers in particular are being forced to accumulate bigger desposits, making it more difficult for them to benefit from a long-anticipated drop in house prices.

"We may see prices fall this year, but because of credit conditions, affordability will probably not improve at all," Miss Barker said. She added: "Finding deposits has become more difficult because of the credit crunch..."

British banks have raised the cost of borrowing for homebuyers with the smallest deposits to a seven-year high and have declined to pass on two Bank of England interest rate cuts. Central bank figures show that the average rate offered by lenders on loans for 95 per cent of the price of a property, fixed for two years, is 6.55 per cent - the highest since September 2000. In January, mortgage approvals were close to the lowest in nine years.
The UK housing market has slumped to the worst since the eve of the nation's last recession in 1990, a survey by the Royal Institute of Chartered Surveyors showed last month.
Too few homes are being built to meet Britain's housing needs, and that the number of new houses built would probably fall this year.

A DESPAIRING WORLD

“While many of the poor are making progress, many of the very poorest are stuck at the bottom. Nearly 10 million children die each year because their families, communities and nations are too poor to sustain them. The instability of impoverished and water-stressed countries has ignited a swath of violence across the Horn of Africa, the Middle East and Central Asia. What we call violent fundamentalism should be seen for what it really is: poverty, hunger, water scarcity and despair. "(Time, 19 March) RD

OUTDATED MARXISM?

"A study of the effect of religion on quality of life claims that religious people are happier the more often they go to church and pray. The research, presented to the Royal Economic Society, gathered data from thousands across Europe including the UK and found that religious people have better “life satisfaction” than their non-religious counterparts." (Times, 18 March) Religion is the opium of the people. It is the heart of a heartless world. The cry of the oppressed creature." (Karl Marx, 1844) RD

Wednesday, March 19, 2008

THIS IS PROGRESS?

"There have been virtual fences, real fences, increased patrols and night-vision cameras. Now the latest initiative by the US to seal its increasingly porous border with Mexico harks back to one of the oldest approaches: dig a moat. City officials in Yuma, in south-western Arizona, have come up with a scheme to create a "security channel" along the nearby border by reviving a derelict two-mile stretch of the Colorado river. "The moats that I've seen circled the castle and allowed you to protect yourself, and that's kind of what we're looking at here," Yuma county sheriff Ralph Ogden told the Associated Press. (Guardian, 14 March) RD

A BRIGHT FUTURE?

No so long ago the capitalist media was full of futurologists predicting the four hour day, the three day week and retirement at fifty years of age. The big problem of the future would be leisure. How wrong all that nonsense was is shown by what is happening in the most advanced capitalist nation on earth. "A third of Americans 50 and over are not confident they will have enough money to retire, and more than two-thirds expect to keep working well into old age, according to a survey published Wednesday. The report, commissioned by retirement services firm SecurePath by Transamerica, suggests the surge in companies offering defined-contribution 401(k) plans has not displaced Social Security as the ultimate safety net for retirees." (Yahoo News, 12 March) RD

REFORMISM FAILS AGAIN (2)

"Despite a pledge to cut the health gap between the richest and poorest, the difference in life expectancy is widening, a government report shows. The aim is to reduce the differences in male and female life expectancy by 10% by 2010. But the report shows the gap between those in the most deprived areas of England and the rest of the country is getting worse. ...Professor Danny Dorling, an expert in human geography at Sheffield University, said the inequalities were now at "unprecedented levels". "This is the first Labour or Liberal government to see this gap widen."...David Sinclair, head of policy at Help the Aged said poverty was a "central consideration". He added: "It remains the case that those who are wealthier can afford to stay active and healthy, those in poverty cannot."
(BBC News, 13 March) RD

Debt for the workers

The [so-called] middle classes have become the latest victims of the spiralling debt crisis because of “super-inflationary” rises in the cost of living, a leading debt group said yesterday.

The Consumer Credit Counselling Service said that while steep rises in energy and mortgage costs had hit the oldest and poorest hardest, the increases had been so dramatic that even the professional classes were struggling. Experts said that the figures marked a more serious era in the country’s battle with debt because they showed that the problem had extended from borrowers with credit cards and personal loans to all households, irrespective of how much they had borrowed or what they earned.

Rises in mortgage costs have had a disproportionate impact on higherincome earners because they spend more of their disposable incomes on property, the counselling service said. It found that this group now spends 44 per cent of their net salary on their rent or mortgage, up from 34 per cent five years ago; households below the poverty line spend 8 per cent.

The figures came after Citizens Advice Bureaux reported a 35 per cent increase in inquiries from homeowners worried about paying the mortgage.

Experian, the credit reference agency, published a debt map of Britain yesterday, giving a breakdown of how much towns and cities owe. Residents of Chester-le-Street have borrowed the most on credit cards and loans, with an average amount outstanding of £5,248. Borrowers in Northern Ireland owe the least, with an average of £2,291. Experian said that mortgage balances had grown the most in areas that had experienced the highest house price growth in the past 12 months, such as Northern Ireland, Kensington & Chelsea and Wandsworth.

The average fuel bill has reached more than £1,000 a year after recent price rises by energy companies, while the average home loan went up by almost £9,000 between 2006 and 2007, from £118,536 to £127,039, the Council of Mortgage Lenders said.

Credit Action, another debt charity, said that second-home owners and older people who had taken out equity from their homes to help to fund their retirement were at particularly high risk from rising living costs, because of their exposure to the downturn in the property market as well as more expensive mortgage rates on these deals.

The counselling service said that the profile of those asking for help was becoming “older and poorer”. For the first time it found that customers over the age of 60 had the highest level of debt, at £29,642. The inflation rate for people over 75 is now 3.4 per cent, compared with an official inflation rate of 2.5 per cent, according to Alliance Trust, the investment group.
Other research showed that an increasing number of desperate homeowners are resorting to dangerous measures to get out of debt. In the past three years 6.5 million mortgage borrowers have lumped separate credit card and personal loan debts into one, according to Moneyexpert.com

The director of Credit Action, said: “This is a new era for the UK’s debt crisis. Previously, debt problems were confined to people with credit cards and loans. Now, everyone is struggling with essentials, such as utility bills and mortgages.”

Bankers still rake it in

Fred Goodwin regained his place as the highest-paid executive at Royal Bank of Scotland last year after taking home £4.2 million. Goodwin's pay package was up 5% from 2006 with a basic salary of £1.3m and a performance bonus of £2.9m. He also earned extra pension rights worth £772,000 in the course of the year and netted a paper profit of £1.2m after exercising cut-price options on nearly 500,000 shares under a performance scheme. Goodwin's pay package made him the best-paid of Royal Bank's executives. It could have been higher but he missed out on 286,579 shares that could have been awarded under a medium-term performance plan from 2005 as the company failed to meet targets.

Mike Fisher, who has gone to manage Royal Bank's portion of the ABN Amro business took home £2.4m in pay and bonuses, up 24% on 2006. Finance director Guy Whittaker who benefited last year from major pay-outs to compensate him for his move from Citigroup in 2006. In 2007, he received £3.35m in pay. Larry Fish, who ran the bank's US subsidiary Citizens Financial, also fell back in the pay stakes. He netted £6.6m in 2006 but in 20007 had to make do with around £2m in pay and bonuses.

In these times of financial troubles and credit crunch , isn't it good to see how those bankers are suffering hardship and sharing the woes with all us who are facing increased debt and higher bills .

For a socialist analysis of the present American capitialist crisis see Bubble Trouble

Tuesday, March 18, 2008

Glasgow - Edinburgh Day School




Glasgow - Edinburgh Day School


CAPITALISM IN

THE 21st CENTURY


Why Capitalism Can't Go Green.

Paul Bennet

Another Century of Wars?

Gwynn Thomas

The Tyrany of Copyright.

Tristan Miller



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Saturday 10 May from 1 to 5pm
Venue: Maryhill Community Halls,

304 Maryhill Road, Glasgow.


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Each speaker will speak for up to 30 minutes, the rest of the session will be taken up by questions and discussions.


Fresh tea, coffee and light refreshments will be available all afternoon.
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Why Capitalism can't go green.

1.00 till 2.15 pm

Capitalism is simply unable to run on green lines, as its motive force is expansion and domination, with no thought for the consequences for the people or the environment. In this talk Paul Bennett, Manchester Branch,will argue that capitalism is unable to cope with the ecological challenges that lie ahead, from global warming,to depletion of resources.

Some writing on this subject
Pepper Standard Bennet Eco-Socialism












Another Century of War

3.45 till 5.00 pm

The new century opened with the promise of a "peace dividend".Tensions between the Super-powers had relaxed and the risk of interstate war seemed to have receeded only to be replaced by an increasing number of wars within states.Wars in which 90% of the casualties are civilians and 80% of those are women and children. Of the 50 major conflicts fought during the 1990's small arms were the weapons of choice in 46 of them..
Gwynn Thomas, South London Branch
, will argue that these are wars on the cheap

Some writing on war
Orwell Thomas BBC


The Tyranny of copyright

2.15 - 3.45 pm

Everything is owned inside capitalism. All the land, the factories, the seas and the farms. An equally pernicious aspect of capitalism is that it tries to own innovations and ideas, and indeed passes laws to protect their copyright.

Copyright










Tristan Miller, Central London Branch
looks at copyright laws and recent attempts to have ideas free to all by developments in the internet. The internet was devised as free for all to access but capitalism fears this development in the 21st century and has tried to restrict free access.

Some more writing on this subject.
Chomsky Miller

Monday, March 17, 2008

MORE WORDS OF WISDOM

"The last French veteran of World War I, an Italian immigrant who lied about his age to join the Foreign Legion and fight in the trenches, died Wednesday aged 110, President Nicolas Sarkozy said. Lazare Ponticelli, the last of more than eight million men who fought under French colours in the 1914-18 war that tore Europe apart, died at the home he shared with his daughter in Kremlin-Bicetre, a Paris suburb. Reflecting on his wartime experiences, he once said: "You shoot at men who are fathers: war is completely stupid." (Yahoo News, 12 March) RD

CARING CAPITALISM

From San Diego comes news about how capitalism treats the homeless. In 2006, the Regional Task Force on Homeless estimated the homeless population at 9,600 countywide, which included 4,400 people within the city of San Diego "Esther Viti, who oversees the donation of public benches for a merchants' association in La Jolla, sent an e-mail to 45 other activists last week asking them to sit in three-hour shifts, no bathroom breaks allowed. "After all, you MUST OCCUPY THAT BENCH continually for three hours to prevent that homeless person from sitting on that bench," the e-mail said. Donors weren't happy that transients were sleeping on benches they had provided for the public, Viti said. The group previously tried installing benches with metal dividers that split the seats. Transients simply began sleeping upright, said Deborah Marengo, president of Promote La Jolla." (Yahoo News, 10 March) RD

Friday, March 14, 2008

ANOTHER RAY OF HOPE

Socialists are often told that socialism is impossible because human beings are innately war-like and aggressive, but this report seems to suggest otherwise.
"More and more Israelis are avoiding mandatory military service— something long viewed in this country as a proud rite of passage. "In the past, it is true that not serving in the military was considered the exception," said Dr. Rueven Gal , author of "A Portrait of the Israeli Soldier" and former chief psychologist for the Israeli military. "In more recent years it became more tolerable and more acceptable to people." In 1997, according to army statistics, less than one in 10 Israeli men avoided their mandatory three-year military service. These days, it's closer to three in 10. Women, too, are opting out at a faster pace: Over the last decade, the number of women avoiding military duty rose from 37 percent to 44 percent." (Yahoo News, 2 March) RD

A RAY OF HOPE

The awful carnage in the hate-filled Middle East and the religious brutality there fills socialists with gloom but this report would seem to suggest that all is not lost.
"After almost five years of war, many young people in Iraq, exhausted by constant firsthand exposure to the violence of religious extremism, say they have grown disillusioned with religious leaders and sceptical of the faith that they preach. In two months of interviews with 40 young people in five Iraqi cities, a pattern of disenchantment emerged, in which young Iraqis, both poor and middle class, blamed clerics for the violence and the restrictions that have narrowed their lives. “I hate Islam and all the clerics because they limit our freedom every day and their instruction became heavy over us,” said Sara, a high school student in Basra. “Most of the girls in my high school hate that Islamic people control the authority because they don’t deserve to be rulers.” Atheer, a 19-year-old from a poor, heavily Shiite neighbourhood in southern Baghdad, said: “The religion men are liars. Young people don’t believe them. Guys my age are not interested in religion anymore.”
(New York Times, 4 March) RD

Thursday, March 13, 2008

Budget - No relief for child poverty

Don't believe us - this , out of their own mouths .

John McDonnell , Labour Party MP , on the budget :-

" In 1999 the Government said it would halve child poverty by 2010 - taking 1.7m children out of poverty. To date it has missed its targets and only removed 600,000 children from poverty. In the pre-budget briefings pouring out of Number 10 and the Treasury we were all led to believe that the Chancellor would make a major announcement today to get the Government back on course to meet its target.Instead, the Chancellor has admitted defeat in the war against child poverty and has confirmed that the Government will not meet its 2010 target - and will leave over 2.5m children still living in poverty in the fifth richest countries in the world. The measures announced today will only remove at most a further 250,000 children from poverty by 2010.

In calculating child poverty the Government has massaged the figures by removing housing costs from the calculation. If these costs are put back the real assessment of child poverty confirms that in fact 3.5 million children will remain in poverty in our society.

If after eleven years in office, a Labour Government cannot meet such a basic aim of lifting our children out of poverty, many will judge this period of government as the greatest missed opportunity in the history of the Labour party."

Real soicialists have been saying since the formation of the Labour Party its members and supporters have always been deluded in the mistaken belief that Labour puts the poor before profits .

Poor Health for the poor

Socialist Courier has reported numerous times on the difference of quality of health between the privileged and un privileged and another report shows the gap between those in the most deprived areas of England and the rest of the country is getting worse. Despite a pledge to cut the health gap between the richest and poorest, the difference in life expectancy is widening, a government report shows.

The gap in life expectancy for women in the most deprived areas compared with the average was 2% wider in 2004-06 than in 1995-97. And the gap for women is now 11% wider. The difference in the infant mortality rate has been falling in recent years after a 2002 high, it is still significantly higher than it was a decade ago. For babies whose fathers have a "routine or manual occupation", the mortality rate in 2004-06 was 17% higher than that for the general population, compared to 13% in 1997-99.

Professor Danny Dorling, an expert in human geography at Sheffield University, said the inequalities were now at "unprecedented levels".
"This is the first Labour or Liberal government to see this gap widen. I can see why the government thought that just giving it time and spending money on it would work. But it worries me that there will be more excuses rather than an admission of failure."

David Sinclair, head of policy at Help the Aged said :
"It remains the case that those who are wealthier can afford to stay active and healthy, those in poverty cannot. "

Teaching War


This Saturday members of Glasgow and Edinburgh branches will be in attendnce at stop the war demonstration in Glasgow leafletting and selling the Socialist Standard . It is now a cliche to say that the first casuality of war is truth but the statement remains accurate .


Ministry of Defence teaching materials that give an unbalanced view of the Iraq war are being used in schools, teachers' leaders have said. He warned that some of its assertions, presented as facts, would be disputed by most teachers. There were no estimates of the numbers of people killed, wounded or made homeless by the military action, he said. The material therefore risked breaching the part of the 1996 Education Act concerned with balanced teaching of political issues .

He told reporters: "When you are dealing with something as controversial as Iraq and the different events that led up to the invasion, teachers are under a duty to present material that is balanced. The MoD material does not live up to that high standard..."


Mr Sinnott also criticised Army recruitment methods which he said did not present a balanced view of what joining the armed forces entailed. He said "unethical practices" had been unearthed in recent research by the Joseph Rowntree Charitable Trust. He claimed that youngsters from deprived backgrounds were being targeted by Army recruiters. Mr Sinnott said the recruiters engaged in "very dubious practices", targeting youngsters from poorer backgrounds.
"Youngsters from the most disadvantaged backgrounds have more limited opportunities in life than youngsters from better off backgrounds. It's simply a fact. I am not saying that youngsters from disadvantaged backgrounds cannot get something from a career in the military.The Army has created a better life for some youngsters, but there are other youngsters who join up because they have little or no choice."


The teaching union will debate a motion at its upcoming conference which argues: "Military intervention in schools customarily presents a partisan view of war, largely by ignoring its fatal realities in favour of promises of travel, skill training and further or higher education course sponsorships otherwise often unavailable to young people, especially in area of high unemployment."

CAPITALISM ROTS THE BRAIN

"Exposure to traffic fumes for even a short time can alter the way the brain works, and may increase the risk of developing Alzheimer’s and Parkinson’s diseases, a study suggests. Very small particles inhaled from polluted air can end up in the brain, where they induce a stress response and change the way it processes information, Dutch researchers report in the journal Particle and Fibre Toxicology." (Times, 11 March) RD

YET ANOTHER ILLUSION

"Sakena Yacoobi well knows the hardships of Afghan women, caught between a war and the hopelessness of poverty and illiteracy. Yet on International Women's Day Saturday, the Afghan educator will not ask the world to help Afghan women. Instead, she will ask Afghan women to help the world. In a time of growing conflict around the world, she believes the wisdom and compassion of women can offer a way out. "Women bring tolerance and patience," she says. "Women can bring solutions – we cannot accomplish that with weapons." She is one of several hundred prominent female leaders from 45 countries who have come to India this week to seek ways to raise women's voices worldwide, hoping that their ideas – so often ignored – begin to move the world away from war. (Yahoo News, 7 March)
It is not gender ideas that cause war it is capitalism. Is Yacoobi not aware that Israel had a woman leader during much of their wars, that Pakistan had a woman leader in their conflicts with India and that Mrs Thatcher was the UK prime minister during the war in the Falklands RD

All the way to the bank

The Times tells us that :-

Andy Hornby, HBOS's chief executive, took home a £1.9 million pay packet for the year, including an annual bonus of £449,000.

Peter Cummings, chief executive of HBOS's corporate business, was paid £2.6 million, after picking up a £300,000 bonus from the executive bonus scheme and a further £1.3 million from a separate bonus plan run by the corporate division.

Benny Higgins, who was ousted last year as head of HBOS's retail banking business, was paid £2.3 million, including his full annual salary and benefits of £900,000 and the same amount again as a payout.

Dennis Stevenson, the chairman, was paid £821,000, including £113,000 in benefits. Jo Dawson and Dan Watkins, the new joint heads of the retail business, were paid £1 million and £329,000 respectively.

Wednesday, March 12, 2008

DEMOCRACY IN ACTION?

"President Bush has vetoed a law preventing the CIA using interrogation techniques condemned by many as torture, because it “would take away one of the most valuable tools in the War on Terror”. ...The veto throws the spotlight back on to America's use of so-called coercive interrogation methods like waterboarding, the simulated drowning technique invented by Spanish inquisitors and adopted by regimes such as the Khmer Rouge." (Times, 10 March) RD

Income Tax - "It's not on "

"...completely unjust...Some people are talking about taking this to the European court of human rights." - What's got some people so het up ? Torture ? Exploitation ? Censorship ?Oppression ?

No - the tax-man is planning to to make life harder for the 2,000 British millionaires who call Monaco, the tax haven , home. The Guardian reports :-

Until now, tax rules that allow "non-residents" 90 days a year in Britain have contained a crucial loophole: the taxman has not counted "travel days" entering and leaving the country, allowing businesspeople to commute in on a Monday, leave on Wednesday, and claim to have spent just one day in the UK.It has in effect allowed Britons to spend most of the year - up to 270 days - working in Britain, while claiming to be residents of tax havens such as Monaco and to avoid paying tax. That will change under a stricter enforcement of the rules to be unveiled today which has unnerved tax lawyers serving Britons in several tax havens.
The change - likely to count travel days or overnight stays in the residency total - will particularly affect the so-called "Monaco mob", millionaire City workers whose commute entails a seven-minute helicopter ride from Monaco to Nice for a connecting flight to London, often by private jet, before a swift return to the Riviera.

"It's not just tax - it's about lifestyle. The streets are immaculate, there's no crime. You can have breakfast on your terrace, go skiing in the morning, and be back to the beach for the afternoon. I don't know a single person going back. They'll change their lifestyles - it's a nuisance - but they'll get round it."
The night for many "in-crowd" expatriates begins at the Bar Américain, with its Bentleys and Rolls Royces parked outside. The same faces dine in one of the two Michelin-starred restaurants in the Hôtel de Paris, and end the night in Jimmy'z, a nightclub where two shots cost €40 (£30)Another feature of the local nightlife is the well-dressed prostitutes with forced smiles who, more than one British resident admitted, are what "some of us spend our money on".

Roger Munns, who runs two property businesses for Monaco multimillionaires said "These people are quick thinkers. They can move quicker than the government" Those unwilling to change their commuting patterns, he said, were restructuring their companies to funnel money into their spouses' Monaco bank accounts.
A group of City bankers, speaking on condition of anonymity, confirmed they would "play the rules" to find a way to continue spending time at their desks in London while maintaining non-residency status and paying zero income tax.

"Most of these people running businesses and living in Monaco had got the whole system worked out - and it worked just fine," said Damian, a middle-aged "retiring accountant" and long-time Monaco resident. "And now the Treasury has moved the goalposts. It's not on."

It is an injustice , it is , isn't it ?

Food Shortages - "it's capitalism" - says a capitalist

We have reported on the rise in food prices that many commentators blame on changes in supply and demand for grain but the Times reports that the managing director of Greggs, the well known high street baker-shop chain , has attacked speculators for driving up the price of wheat and fuelling famine in Africa.

Michael Darrington said commodity traders were more to blame for spiralling food price inflation than poor harvests or farmland given over to biofuels.

“There are stocks of wheat and grain in the world, and crops are growing at the moment but funds are being set up as speculators see an opportunity to make some short-term money and someone has to pay for it. It's really sad for people in the developing world where food can account for 70 per cent of the family budget. Wheat is predominantly grown in America, Australia, Europe - the wealthier areas - and people in under-developed nations are hurting the most.” He added I suppose that's just capitalism but it's jolly disappointing. If society looked down on these funds then perhaps it would make a difference.”

Can't pay - Can't have - So starve .

Tuesday, March 11, 2008

Labour For Capitalism

The UK should "celebrate the fact that people can be enormously wealthy in this country", Business Secretary John Hutton is expected to say.

In a speech he will argue that "more millionaires" are needed, calling freedom to get rich "a good thing".

THIS IS BRITISH JUSTICE?

"A gay teenager who sought sanctuary in Britain when his boyfriend was executed by the Iranian authorities now faces the same fate after losing his legal battle for asylum. Mehdi Kazemi, 19, came to London to study English in 2004 but later discovered that his boyfriend had been arrested by the Iranian police, charged with sodomy and hanged. In a telephone conversation with his father in Tehran, Mr Kazemi was told that before the execution in April 2006, his boyfriend had been questioned about sexual relations he had with other men and under interrogation had named Mr Kazemi as his partner. Fearing for his own life if he returned to Iran, Mr Kazemi claimed asylum in Britain. But late in 2007 his case was refused. Terror-stricken at the prospect of deportation the young Iranian made a desperate attempt to evade deportation and fled Britain for Holland where he is now being detained amid a growing outcry from campaigners. He appeared before a Dutch court yesterday to plead with the authorities not to return him to Britain where he is almost certain to be sent back to Iran. (Independent, 6 March) RD

CRISIS? WHAT CRISIS?

"US investment guru Warren Buffett has ousted his friend and occasional bridge partner Bill Gates as the world's richest man, Forbes magazine says. The Microsoft co-founder had topped the Forbes business magazine's rich-list for the past 13 years. Mr Buffett's wealth increased by $10bn (£5bn) last year to $62bn. Mr Gates's fortune climbed by $2bn during the same period, dragging him down to third on the list with a fortune of $58bn. He was narrowly pipped into second place by the Mexican communications magnate Carlos Slim Helu, whose $60bn net worth has doubled in the past two years, Forbes reports. (Guardian, 6 March) RD

Food Prices Rise

The Socialist Courier has already reported here about the rise in the world prices of food but today's Herald carried an article on the local effects .

Families are paying record prices for food after costs soared in the year to February, with a rate increase exceeded only by fuel costs.

Annual food product inflation has reached 8.4% - the highest since records began in 1986 - according to the Office for National Statistics . Meat prices were the main culprit of spiralling costs as fresh and preserved meat prices rose 5.5% from January to February.

Food manufacturers such as Hovis bread maker Premier Foods have been labouring under rising wheat costs. Imported cereal product prices are up more than 6% over the month and surging by almost 47% in the year to February.

Sunday, March 09, 2008

Who owns the North Pole - Part 10 , and other climate change threats


Been a while that Socialist Courier reported on the competition to exploit the ever warming Arctic regions , the last time being here . Well , just because the problem isn't reported , it doesn't mean it has disappeared . Also raised in the article are the other potential causes of conflicts , like for instance possible "water wars" and other competition for resources


European Union leaders will receive a stark warning next week of potential conflict with Russia over energy resources at the North Pole as global warning melts the ice cap and aggravates international security threats. A report by EU foreign policy chief Javier Solana and the executive European Commission describes climate change as "a threat multiplier" that will exacerbate many existing tensions and heighten instability.


"A further dimension of competition for energy resources lies in potential conflict over resources in Polar regions which will become exploitable as a consequence of global warming," the eight-page report obtained by Reuters said.


The report said the EU needed to address the growing debate over Arctic territorial claims and access to new trade routes that challenge its ability to secure its trade and resource interests and may put pressure on relations with "key partners." It suggested the 27-nation bloc develop a specific Arctic policy "based on the evolving geo-strategy of the Arctic region, taking into account ... access to resources and the opening of new trade routes."


The study suggested the EU should do more to focus international attention on security risks related to climate change using the U.N. Security Council, the Group of Eight major industrialized powers and specialist U.N. bodies.


It cited a host of regional examples of the increased prospect of conflict caused by the reduction of arable land, water shortages, dwindling food and fish stocks, increased flooding and prolonged droughts which were already occurring.The east coasts of China and India, as well as the Caribbean region and Central America, face particularly severe economic damage from sea-level rise and increasing natural disasters, the report said.Loss of territory as coastlines recede and large areas are submerged would magnify disputes over land and maritime borders. "Europe must expect substantially increased migratory pressure," the report said, as millions of "environmental migrants" flee poverty, poor health and unemployment, risking increased conflicts in transit and destination areas.


Solana and EU External Relations Commissioner Benita Ferrero-Waldner said climate change could increase instability in failed or failing states, stoking tensions between ethnic and religious groups and political radicalization.Existing tensions over access to water in the Middle East were almost certain to intensify, "leading to further political instability with detrimental implications for Europe's energy security and other interests," the report said. It also saw additional potential for conflict in central Asia from an increasing shortage of water, vital for both agriculture and power generation, with an impact on EU strategic and economic interests.

War is indeed the natural condition of capitalism .

OOPS, SORRY ABOUT THAT

"Four hundred years after it put Galileo on trial for heresy The Vatican is to complete its rehabilitation of the great scientist by erecting a statue of him inside the Vatican walls. ... His views were found to be "absurd, philosophically false, and formally heretical because expressly contrary to Holy Scriptures." ... He recanted to save his life, and lived under house arrest until his death in 1642." (Times, 4 March) RD

WHEN MODERATE MEANS MINIMAL

"The government announced a 21p increase in the minimum wage yesterday. The adult rate will rise from £5.52 an hour to £5.73 from October, benefiting almost a million workers, two-thirds of them women. Gordon Brown told the Commons that the wage will have risen by 60% since it was introduced at £3.60 in 1999. Unions called for a "bolder approach", and said the wage should have been increased to £7 an hour. Business groups welcomed the "moderate" rises." (Guardian, 6 March) RD

Praying in Perth


Christian volunteers will patrol Perth town centre from 2230 GMT to 0330 GMT every Saturday night according to the BBC . They are a team of 12 pastors which will go out initially. When the scheme becomes more established they will work in smaller groups. The team will be wearing jackets and caps with Street Pastor emblazoned across them.

They will be offering flip-flops to women who cannot stand in their high heels and giving support to couples who have had disagreements. The group will also pray with those who ask and check bridges for anyone considering jumping in.

Chairman of the Perth Street Pastors said:
"We're just going to go alongside the people coming out of the nightclubs and coming out of the pubs and we're just going to make their lives a bit happier and friendlier...We've been learning anger management, we've been learning about psychology...Some people will want us to pray with them and we'll do that..."

We believe it will take a lot more than a few sanctimonious words and a few prayers from religious do-gooders to make the lives of the working class a bit happier and friendlier .

Saturday, March 08, 2008

CAPITALISM FAILS AGAIN

"The United Nation’s agency responsible for relieving hunger is drawing up plans to ration food aid in response to the spiralling cost of agricultural commodities. The World Food Programme is holding crisis talks to decide what aid to halt if new donations do not arrive in the short term. Josette Sheeran, WFP executive director, told the Financial Times that the agency would look at “cutting the food rations or even the number or people reached” if donors did not provide more money. “Our ability to reach people is going down just as the needs go up,” she said. (Financial Times, 24 February) RD

WINNERS AND LOSERS

"Even as it enriches Arab rulers, the recent oil-price boom is helping to fuel an extraordinary rise in the cost of food and other basic goods that is squeezing this region’s middle class and setting off strikes, demonstrations and occasional riots from Morocco to the Persian Gulf. Here in Jordan, the cost of maintaining fuel subsidies amid the surge in prices forced the government to remove almost all the subsidies this month, sending the price of some fuels up 76 percent overnight. In a devastating domino effect, the cost of basic foods, like eggs, potatoes and cucumbers doubled or more." (New York Times, 25 February) RD

Debt Fears

One in five Scots home owners struggle to meet their mortgage payments, a survey suggests.

Almost one million people find it difficult to cover their monthly repayments and other debts .

Researchers also found 18% reported having to rely on credit cards or loans to pay for daily essentials like food.

Head of personal insolvency for the accountancy firm KPMG in Scotland, Andrew Kennedy, said: "Those people who have been robbing Peter to pay Paul, transferring balances from card to card, remortgaging and taking equity out of their property to pay off spiralling debt are fast running out of options."

KPMG said the global credit crunch meant payment troubles could worsen over the coming months ,people who previously had access to competitive mortgage deals, despite being late with a couple of payments, are going to find it very difficult to find a deal , and that the credit crunch is already seeing credit card companies reducing credit limits and increasing their rejection rates for new customers.

“Debt is the slavery of the free" - a Roman , 1st century B.C.
" A man in debt is so far a slave" - an American , 19th century AD

Friday, March 07, 2008

CAPITALISM IN THE FUTURE?

"Professor Noel Sharkey, from Sheffield University's Department of Computer science, told the Royal United Services Institute that robots will be cheap and easy for terrorists to use in combat situations and could replace suicide bombers. "With the current prices of robot construction falling dramatically, and the [greater] availability of ready-made components for the amateur market, it would not require a lot of skill to make autonomous robot weapons," he said. "Once the new weapons are out there, they will be fairly easy to copy. How long is it going to be before terrorists get in on the act?" (vnunet.com, 27 February) RD

LAND OF THE FREE?

"For the first time in U.S. history, more than one of every 100 adults is in jail or prison, according to a new report documenting America's rank as the world's No. 1 incarcerator. It urges states to curtail corrections spending by placing fewer low-risk offenders behind bars. Using state-by-state data, the report says 2,319,258 Americans were in jail or prison at the start of 2008 — one out of every 99.1 adults. Whether per capita or in raw numbers, it's more than any other nation. The report, released Thursday by the Pew Centre on the States, said the 50 states spent more than $49 billion on corrections last year, up from less than $11 billion 20 years earlier. The rate of increase for prison costs was six times greater than for higher education spending, the report said." (Yahoo News, 29 February) RD

Thursday, March 06, 2008

LOSS OF DIGNITY

Spare a tear for the plight of this luckless billionaire. "One of the world's richest men is selling his £40 million house in London's "Billionaires' Row" after Barratt Homes was granted permission to build flats next door. Lakshmi Mittal led the opposition of his well-heeled neighbours when the house builder applied for permission to put up an apartment block in The Bishops Avenue, Hampstead. However, the plans were approved and now, even though the luxury flats are being marketed at between £4 million and £11 million each, Mr Mittal has put his stately pile, Summer Palace, on the market." (Daily Telegraph, 29 February) Imagine the indignity of having to share your street with people who can only afford a £4 million house. It doesn't bear thinking about. Our sympathy goes out to the poor ill-treated man. RD

COMMERCIALISATION OF SCIENCE

"Philip Moriarty is professor of physics at the University of Nottingham. He argues that research in science has become too commercialised. "Academic research should be done in the public interest, not driven by the aims of a company. ...Science is much more than just technology. Yet, the research councils expect universities to act like the research and development wing of a corporation. I do basic research in nanoscience, which is an area that can be easily applied to the commercial world, but the reason I'm doing it is not to develop a product that Procter & Gamble or Toshiba can market in five years' time: it's to address fundamental questions about nature. If I wanted to work in industry, I'd be there – I wouldn't be at a university. I know many PhD students and postdoctoral researchers who want to pursue an academic career, addressing the bigger questions rather than working in industry, but they are increasingly realising that they'll just end up being paid less to do the same research." (Independent, 28 February) RD

London Olympic Games

The Times reports that the International Olympic Committee’s demand for more than 3,000 chauffeur-driven cars for dignitaries, officials and corporate sponsors. The requirement for a fleet of VIP cars is part of the IOC’s contract with London. The contract is being kept secret at the insistence of the IOC.

These cars will have access to a network of dedicated lanes, which will be closed to other traffic for up to two months. Up to 3,000 sets of traffic lights will also be adjusted to ensure that the IOC’s fleet has fast access to all venues.

The IOC insists it need these cars, and in addition the 110 IOC members, 400 presidents and secretary-generals from the Olympic committees of the 200 competing nations and 450 senior executives from corporate sponsors will also receive free access to public transport .
None of the 10,500 athletes will have access to the 3,145 cars and will instead travel on a dedicated fleet of coaches. Apart from a small number of disabled parking spaces there will be no car parking available for the general public at the venues .

Dee Doocey, the assembly member who chairs the committee scrutinising the Olympics, said:

“You can’t tell Londoners to travel by public transport, yet at the same time kick them off their roads so that VIPs can be whisked around in chauffeur-driven limousines. This is one rule for the haves, and another for the have-nots.”

Poor Energy Bills

The big six energy companies are charging the poorest customers up to £330 a year more for gas and electricity, it emerged last night.

Tariffs for prepayment meters, used typically by pensioners and the less well-off, are up to 45 per cent higher than for internet customers. The industry watchdog branded the practice a £400 million rip-off. The gap between the tariffs has grown after a round of inflation-beating price rises across the sector . Figures compiled by Energy-watch, the watchdog, show that on average prepayment customers are charged £255 a year more than online customers for power, compared with £190 before Christmas. E.ON’s prepayment charge is an average of £1,097 – 45 per cent higher than its internet tariff of £769. British Gas charges its prepayment customers 30 per cent more.

Graham Kerr, of Energywatch, said:

“We have hard evidence of £400 million of excess profits being taken off the poorest members of society just at a time when fuel poverty is continuing to rise. Instead of taking from the rich to give to the poor, it seems that energy companies are taking from the poor to give to the rich.”

More than 4.5 million people are in fuel poverty – spending more than 10 per cent of income on heating their home. One in five prepayment customers is classified as fuel-poor. A third of single parents with dependent children use gas prepayment meters.

Charity doesn't begin at home

Staff at Shelter Scotland went on strike yesterday for the first time in the homeless charity's history in protest over pay and conditions. Offices around the country were closed as more than 100 workers and their supporters gathered at a rally in Glasgow to voice their opposition to new employment contracts.

The union Unite said that a proposed extension of staff hours would see employees working an extra three weeks a year without pay.Workers are also opposed to plans to downgrade 40 posts across Shelter's UK services, including four at Shelter Scotland, and to make up to five staff redundant. Unite said the walkout, following the breakdown of earlier talks, would be repeated on Monday unless management was prepared to negotiate a new offer. The prospect of a resolution looked unlikely, however, as Shelter's UK head warned that if the current offer was refused, up to 200 of its 850 staff UK-wide could lose their jobs.

Wednesday, March 05, 2008

A SOCIETY WITHOUT BORDERS

Inside a socialist society there would be no countries, no borders and no concept of "foreigners". Contrast that with the normal day-to-day existence of modern capitalism. "A high-tech "virtual fence" on part of the U.S. border with Mexico is finally ready for service and the technology can fight illegal crossings all along the frontier, the Homeland Security chief said on Friday. Homeland Security Secretary Michael Chertoff made the announcement during a review of border-control efforts, at which officials also unveiled higher fines for employers who hire illegal immigrants. ...President George W. Bush asked Congress this month for $775 million to build more fencing along the southern border and install high-tech surveillance equipment and other infrastructure." (Yahoo News, 22 February) RD

POSHEST STREET IN LAND

"A Street in north London has been named the most expensive address in England -- knocking Kensington and Chelsea off the top spot. Average property price on Courtenay Avenue, between Highgate golf course and Hampstead Heath is £6.8 million, according to the valuations group Mouseprice." (Daily Mirror, 20 February) RD

THIS IS FREEDOM?

"As if the Government doesn't know enough about us already, it is now using lie-detector equipment (or "voice-risk analysis", as it is euphemistically known) to signal whether people claiming benefit are telling the truth. If you receive a phone call from a town hall official asking about your circumstances, it seems that your answers - or rather, the tone of voice in which you give them - could well be scrutinised by a computer for telltale signs of "stress". ... In the Government's book, apparently, stress in the voice is a pretty good indication of flagrant dishonesty. You will be investigated further. Big Brother is most certainly watching you." (Times, 27 February) RD

BP Bonus

Been a while since Socialist Courier directed atention to the rumuneration that the capitalist class receives .

BP chief executive makes do with bonus of £1.26 million .

The Herald has revealed that Hayward, who became chief executive in May 2007, was awarded a bonus of £1.26m for 2007 which does not include his base salary of £877,000 . Lord Browne of Madingley, the former chief executive of BP, earned more than £3 million before he resigned last year.

A reward for success ? The company last month reported that 2007 net profit fell 5.5% to $20.8bn, despite a 6.2% rise in revenue to $291.4bn and lay-offs of 5000 workers . In contrast, two of BP's main competitors reported a surge in earnings. Royal Dutch Shell, Europe's largest oil company, reported a 23% rise in full-year earnings to a record $31.3bn, while Exxon Mobil posted the largest annual profit yet by a US company with net earnings of $40.6bn.

BP's top five directors, including Hayward, missed out on share awards worth a potential £10.7m because of the company's poor performance. The five were granted no shares at all from a possible 2.2 million under the group's 2005-2007 share incentive scheme - even so i am sure a bonus of a million and a quarter pounds for failure would not go amiss to readers of this blog.

Jake Molloy, general secretary of the Offshore Industry Liaison Committee, the union for offshore rig workers, said: “To make these redundancies and cutbacks and to award themselves payments of this nature is hypocrisy beyond belief. It's sickening.”

Tuesday, March 04, 2008

IT’S A MONEY MAKER THOUGH

"The destruction of Sumatra's natural forests is accelerating global climate change and pushing endangered species closer to extinction, a new report warned today. A study from WWF claims that converting the forests and peat swamps of just one Sumatran province into plantations for pulpwood and palm oil is generating more annual greenhouse gas emissions than the Netherlands, and is endangering local elephant and tiger populations." (Guardian, 27 February) RD

A FRIGHTENING FUTURE

"The United Nations warned yesterday that it no longer has enough money to keep global malnutrition at bay this year in the face of a dramatic upward surge in world commodity prices, which have created a "new face of hunger". "We will have a problem in coming months," said Josette Sheeran, the head of the UN's World Food Programme (WFP)."We will have a significant gap if commodity prices remain this high, and we will need an extra half billion dollars just to meet existing assessed needs." ..."This is the new face of hunger," Sheeran said. "There is food on shelves but people are priced out of the market. There is vulnerability in urban areas we have not seen before. There are food riots in countries where we have not seen them before." WFP officials say the extraordinary increases in the global price of basic foods were caused by a "perfect storm" of factors: a rise in demand for animal feed from increasingly prosperous populations in India and China, the use of more land and agricultural produce for bio fuels, and climate change." (Guardian, 26 February) RD

Running forward to stand still

The average household is £5 a week worse off than last year. The cost of living rose by 4.9 per cent to £388 a week. Earnings also increased but soaring bills for essentials such as food and transport mean that disposable income has fallen to £138 a week according to research by the Centre for Economics and Business . the charity Credit Action, said:
“When you add together the increases in grocery bills, energy costs and the fact that all credit is getting more expensive, it means that the real cost of inflation is far above the Government’s measure."

CEBR carried out the research on behalf of the supermarket group Asda. It found that the average family had to pay 6.1 per cent more for food in January compared with January 2007, and 6.4 per cent more for transport. Petrol prices were nearly 20 per cent higher. Only a 4.8 per cent fall in the cost of clothing helped lessen the pressure on consumers’ wallets. Households in Wales have been worst affected by spiralling costs, the CEBR said. The average family has £45 a week to spend on leisure and recreation once weekly bills are met. This is more than 12 per cent less than they had to spend in January 2007.

FSA’s director of financial capability, said: “Economic conditions are getting tougher, putting pressure on family finances...."

Chief executive of Asda, said: “The latest figures indicate that 2008 is going to be a tough year for customers and confirms what we’ve known for some time: that household budgets are stretched to the limit.”

Credit Action said:“We are helping people whose finances are being squeezed significantly. They are not just worrying about mortgage repayments, but are struggling to cover the cost of living week to week.”

Monday, March 03, 2008

This land of England

Almost one million households in rural England live in poverty, a study says. 928,000 households with incomes below the official poverty line of £16,492.

"A significant number of rural people are unable to share in this high quality of life, with over 928,000 rural households with incomes below the official poverty threshold." Dr Burgess, who heads the Commission for Rural Communities, said . One of Dr Burgess's recommendations is to promote community land trusts, which ensure properties are affordable for rural workers and do not become second homes. "No government, whichever colour of the day, is going to interfere dramatically into the market economy. But what we can do is mitigate the problem."

Rural problems such as lack of affordable housing and access to public transport have been highlighted for years but little has been done to solve them. Many rural communities are therefore unable to deliver a safe, prosperous and healthy quality of life.

Cumbrian slate miner Ben Bland, told the BBC that people from outside rural communities buying up properties was a problem. He said: "Most of the cottages and houses were built by the miners that worked here in the past and built for them to live in.
"It's just a pity they are being sold on to outside buyers now and they're only lived in for six months of the year."

I will not cease from Mental Fight,
Nor shall my Sword sleep in my hand
Till we have built Jerusalem
In England's green and pleasant land.

JOBS FOR THE BOYS

When in opposition, Gordon Brown criticised the last Tory government for the "revolving door from the cabinet room to the board room", but he has remained silent about a similar ploy by his own party members. "Twenty-eight former Labour ministers have cashed in on their connections in government and Whitehall by taking jobs in the private sector in the past two years. It represents the biggest exodus of ministers into the private sector since Labour came to power and is worth at least £10m a year in salaries and fees." (Sunday Times, 24 February) RD

LEARNING SLOWLY

"The number of soldier leaving the Army has increased every month since troops began fighting Afghanistan, according to figures from the Ministry of Defence. In 2006, 11,310 soldiers left the Army. By 31 December last year, the number had risen to 12,520." (Times, 22 February) RD

A CYNICAL SYSTEM

Oscar Wilde once described a cynic as "a man who knows the price of everything but the value of nothing". The following news item shows what a cynical system capitalism is.
"A Russian businessman paid a record price on Wednesday for an 18th century violin that had not been played in public for more than 70 years. Maxim Viktorov, who bought the instrument by master violin maker Guiseppe Guarneri, paid "well in excess" of the previous world auction record for a musical instrument of $3.54 million, auction house Sotheby's said." (Yahoo News, 13 February)
When Guarneri fashioned his violin he naively must have thought it would be played to delight others not lie silent in a bank vault to increase in price. Inside capitalism many works of art are locked up by millionaires who know the price of everything but the value of nothing. RD

MORE CANCER FOR THE POOR

"Three years ago, an international treaty took effect that was designed to help developing countries resist aggressive marketing by big tobacco companies. The idea was that if a large number of countries committed themselves to the same tobacco control policies — including bans on all advertising and promotion — they would be better able to resist pressure from multinational tobacco companies and their own domestic tobacco sellers. Unfortunately, the governments of low- and middle-income countries have not followed through. With tobacco use declining in wealthier countries, tobacco companies are spending tens of billions of dollars a year on advertising, marketing and sponsorship, much of it to increase sales in these developing countries." (New York Times, 19 February) RD

Sunday, March 02, 2008

SITUATIONS VACANT

"Ireland, a country that used to export its Catholic clergy around the world, is running out of priests at such a rate that their numbers will have dropped by two thirds in the next 20 years, leaving parishes up and down the land vacant. ...One hundred and sixty priests died last year but only nine were ordained. Figures for nuns were even more dramatic, with the deaths of 228 nuns and only two taking final vows for service in religious life." (Times, 27 February) RD

WHEN RELIGION RULES

"Prosecutors in Saudi Arabia have begun investigating 57 young men who were arrested on Thursday for flirting with girls at shopping centres in Mecca. The men are accused of wearing indecent clothes, playing loud music and dancing in order to attract the attention of girls, the Saudi Gazette reported. They were arrested following a request of the Commission for the Promotion of Virtue and Prevention of Vice. The Mutaween enforce Saudi Arabia's conservative brand of Islam, Wahhabism. Earlier in the month, the authorities enforced a ban on the sale of red roses and other symbols used in many countries to mark Valentine's Day. The ban is partly because of the connection with a "pagan Christian holiday", and also because the festival itself is seen as encouraging relations between the sexes outside marriage, punishable by law in the kingdom." (BBC News, 23 February) RD

SCIENCE AND THE VATICAN

Professor Stephen Hawkings: "At a conference on cosmology at the Vatican, the Pope told the delegates that it was OK to study the universe after it began; however, they should not enquire into the beginning itself, because that was the moment of creation and the work of God. I was glad he didn't realise I had already presented a paper at the conference investigating precisely that issue: I didn't fancy the thought of being handed over to the Inquisition like Galileo." (Daily Telegraph, 26 February) RD

Saturday, March 01, 2008

A MAD, MAD WORLD (2)

"A Blackberry may be a status symbol, but as the high-tech devices become ever more ubiquitous, users are increasingly looking for ways to make theirs stand out. ...For the pragmatic, Otter Box makes cases featuring durable rubber and polycarbonate that look cool and provide great cushioning ($100; www.otterbox.com). Louis Vuitton has developed the Okapi Case GM, a spacious carrier made of the company's iconic Damier canvas ($420; www.louisvuitton. com). Just in time for Valentine's Day, Goldstriker International is unveiling a line of luxury leather and gold- or platinum-plated cases ($1,560; www.goldstriker.co. uk). For women, Violet May in London makes a stylish gold python-print BlackBerry purse, with a deep inner sleeve for the device, plus room for money, business cards and even a passport ($390; www. violetmaylondon.com). But nothing is more extravagant than the version from Case-Mate, made from 15 grams of gold and encrusted with 3.5 carats of diamonds. Just be sure you don't drop it down the stairs ($20,000; www.case-mate.com)." (Newsweek, 18 February) RD

IT’S A MAD, MAD WORLD

"A penny saved is not necessarily just a penny earned: One man's collection of rare American cents has turned into a $10.7 million auction windfall. The collection of 301 cents featured some of the rarest and earliest examples of the American penny, including a cent that was minted for two weeks in 1793 but was abandoned because Congress thought Lady Liberty looked frightened. That coin and a 1794 cent with tiny stars added to prevent counterfeiters each raised hundreds of thousands of dollars, according to the Dallas-based auction house Heritage Auction Galleries, which held the sale in Long Beach on Friday night." (Yahoo News, 16 February) RD

Work Rage

Stressed out workers are increasingly suffering from 'work rage', according to a new study.

Four out of five people surveyed admitted they had lost their temper with a co-worker, for not pulling their weight in the office. More than two thirds of the 1,200 questioned said verbal abuse was common in their office.

"If you are one of those people who throw their Blackberry at the wall because you are frustrated at work, or snap at a co-worker while discussing how much you hate your job, then you are not alone."

Firms were urged to encourage staff to take regular breaks, and have a proper lunch in a bid to reduce stress.

Uh-huh , we can all see that happening in these days of speed-ups , unpaid overtime and the extraction of the last bit of labour-power from staff .

Friday, February 29, 2008

A NASTY SYSTEM

"Three British bankers have been sentenced to 37 months in prison each for their role in a multi-million pound fraud linked to US energy firm Enron. David Bermingham, Gary Mulgrew and Giles Darby - the so-called NatWest Three - have been sentenced after admitting to wire fraud. ... Last November, the three, all 45, admitted to defrauding former employer NatWest out of $19m (£10m). ... The men admitted to conspiring with ex-Enron employees Andrew Fastow and Michael Kopper, who are already in prison, to defraud NatWest of $19m and then split $7.3m between themselves. Charges brought by prosecutors argued that the three men had advised NatWest to sell part of a firm, Swap Sub, owned by Enron for less than it was worth. The men then left the bank and bought a share in the Enron-owned company, before selling it on at a higher price for a profit. ...Enron, once a hugely successful energy firm, collapsed in 2001 with debts of $31.8bn (£18.3bn)." (BBC News, 22 February) RD

DID THE EARTH MOVE FOR YOU?

"An Israeli lawmaker said Wednesday that several earthquakes felt in Israel recently were a consequence of gays and the parliament's acceptance of them. Shlomo Benizri of the ultra-Orthodox Jewish Shas Party, said the way to stop the tremors was for parliament to reverse its trend of liberalizing laws concerning homosexuals. Two quakes originating in neighbouring Lebanon shook much of Israel last week, the first coming two days after Israel's attorney general ruled that same-sex couples could adopt children. ..."Why do earthquakes happen? One of the reasons is the things to which the Knesset (parliament) gives legitimacy, to sodomy," Benizri said during a parliamentary debate on earthquake preparedness. A cost-effective way of averting earthquake damage, he added, would be to stop "passing legislation on how to encourage homosexual activity in the state of Israel, which anyway brings about earthquakes." (Time, 21 February) RD

Thursday, February 28, 2008

THE MODERN GAME

Once upon a time football news would be about such things as goals and league points, nowadays it is more likely to be about investments and financial returns. "Arsenal has seen its half-year profits rise 54%, boosted by the latest Premier League television rights deal and the success of its Emirates Stadium. The north London football club said its pre-tax profit totalled £20m for the six months to 30 November 2007, compared with £12.6m a year earlier. Arsenal's broadcasting income was up £6.5m at £24.3m, while match day income had risen by more than £3m to £41.4m. ...Earlier this month an investment firm co-owned by Russian billionaire Alisher Usmanov revealed it had increased its stake in Arsenal to 24%. Red and White Holdings previously had about 23% of the club's shares and have been reported to have a goal of owning at least 25%." (BBC News, 22 February) RD

CAPITALISM AND EUPHEMISM

Capitalism has got to have euphemisms to cover up the sordid nature of the system. Thus children, maimed by napalm bombs is called "co-lateral damage" and troops blowing up their own troops is called "friendly fire". A recent addition to this sorry catalogue is "extraordinary rendition". "David Miliband has admitted two US 'extraordinary rendition' flights landed on UK territory in 2002. The foreign secretary said in both cases US planes refuelled on the UK dependent territory of Diego Garcia. He said he was "very sorry" to have to say that previous denials made in "good faith" were now having to be corrected. The renditions - the transport of terror suspects around the world for interrogation - only came to light after a US records search, he said." ..."Amnesty International UK director Kate Allen said extraordinary rendition was "a polite way of talking about kidnapping and secret detention". (BBC News, 21 February) RD

Keeping a roof over ones head

House prices are now six times the salary of the average Scot, according to new government figures revealed yesterday.
The statistics show that the average house price of £137,192 is running out of reach of the £22,261 median salary.

First-time buyers with little or no savings are being faced with debilitating interest rates as the industry recoils, and many young people can't buy without parents' help. The pressure on those with low incomes was highlighted by one case where a couple with a joint income of £26,000 were paying £700 a month in mortgage repayments.

Don Fleming, of the Mortgage Advice Network said in one instance a lender was offered a 95% mortgage and as soon as the papers were signed a further 30% loan was offered as a top-up because the person was then classed as a property owner. He said: "Lenders were calling it flexibility, but what they mean is they are pulling the wool over society's eyes. Government should have stepped in to stop people receiving large unsecured loans."

Wednesday, February 27, 2008

WORDS OF WISDOM

Steve Jones, Professor of Genetics at University College of London: "The idea that life began by magic a few thousand years ago is entirely absurd - yet believers, of whatever persuasion, insist on its truth. This does no harm to science, but to my secular eyes seems to do immense damage to religion itself." (Daily Telegraph, 26 February) RD

THE AMERICAN DREAM?

"More American homeowners are mired in negative equity than at any time since the Great Depression of the Thirties ... Close to 9 million Americans, or 10.3 per cent of homeowners in the US, now owe more on their mortgages than their house is worth, according to the latest figures from Moody's, the ratings agency, as inventories of unsold homes continue to pile up in an already over-supplied market." (Observer, 24 February) RD

A MAD, MAD WORLD

"Just a few weeks ago, we reported with patriotic fervour the British businessman who paid almost £500,000 for the licence plate "F!". Stout, upstanding, well-adjusted fellow. But now an Abu Dhabi property magnate has smashed the world record for the most expensive number plate, paying - ready for this? - £7.1 million on the plate '1'. Cash-addled fool. "I bought it because it's the best number," said Saeed Khouri at the auction in the United Arab Emirates. "I bought it because I want to be the best in the world." (Top Gear, 18 February) RD

A WASTEFUL SOCIETY

"President Bush asked Congress on Monday for $515 billion for military spending, an increase of 7.5% compared with last year. Among the major factors driving the increase is the Pentagon's plan to bolster the ranks of the Army and Marine Corps, forces stretched thin by two wars. The budget calls for an $8.7 billion hike to $20.5 billion in 2009 to add 7,000 soldiers and 5,000 Marines. (USA Today, 4 February) RD

Tesco move to the Cayman Islands

Tesco has created an elaborate corporate structure involving offshore tax havens which enables it to avoid paying what could be up to £1bn of tax on profits from the sale of its UK properties. The complex new structures uncovered by a six-month Guardian investigation include a string of Cayman Island companies. These are being used by the supermarket giant as it proceeds with its announced programme to sell and lease back £6bn worth of its UK stores.
The stores are being sold to external investors providing Tesco with a big one-off gain which, ordinarily, would be liable to tax, while allowing it to remain in the stores and pay rent to the new owners. The first two deals, worth £445m and £650m, have already used the companies set up in the Cayman Islands - where the rate of corporation tax is zero - allowing Tesco to avoid tax on about £500m profit. Large corporations are increasingly developing strategies to cut tax bills and Tesco is not alone in its tax planning.
The Guardian's analysis of Tesco's accounts over the past five years also shows that the company has paid an effective tax rate of just over 20% on the rest of its profits, at a time when the UK corporation tax rate is 30%.

The investigation has found:
· New company structures set up by Tesco to own stores that are being sold and leased back mean that 99.9% of the company that owns the stores could end up being held offshore. Tesco would be liable to pay UK tax on only the 0.1% of its profit on the sale of the stores held in the UK. Tesco's first two property deals, worth about £1bn, have used this structure and will avoid tax on £500m of profits.
· Although its accounts for the past five years report an average rate of corporation tax of 29%, the actual rate of tax Tesco paid, according to its cash flow statement, is closer to 20%. This is on profits separate from the property deals. UK corporation tax is 30%.
· Tesco has sold its 37 stores in the first two sale and leaseback deals at twice the book value that is included in its accounts, making a profit of about £500m on the £1bn of stores sold. If it achieves the same rate of return on all its disposals as expected, its share of profits from property sales would come to about £3bn. The UK corporation tax due on this would be as high as £1bn, but the retailer could avoid paying this because of its offshore structure.
· A string of other company structures leading to the Cayman Islands have been set up and more of Tesco's properties have already been transferred to them so that they could be quickly activated for the next tranche of store sales.

Tesco Red (GP), which acted as general partner in the £445 million sale-and-leaseback partnership with the British Airways pension funds did indeed pay UK tax on its share of income from ongoing business after the deal. Tesco Red (GP)'s UK income for the period to February 28 2007 was just a measly £832 and its UK tax bill was £494.

Tesco claim since they pay corporation tax, business rates, employer's national insurance contributions and other taxes. Combined with the approximately £750m of PAYE tax, employee's NIC and net VAT that we collected in that financial year, this means they are in the top 10 taxpayers in the UK. We wonder how their rival supermarkets and competitors feel - or are they up to the same tax avoidance [ tax avoidance rather than tax evasion or tax cheating, of course ]



Nearly a third of the UK's 700 largest businesses paid no corporation tax in the year 2005-6. A further third paid less than £10m each, according to figures from the National Audit Office released last year.

Charity begins at home

An urgent appeal for food for families and individuals in need has been made by a Highland charity. Blythswood Care, known for transporting relief aid to Eastern Europe, said there has been an increased demand in the Highlands over the winter months.

It warned that it had already helped 340 people this year and that stocks were running low. The Highland Food Bank gives a three-day supply of foodstuffs to households in financial crises.

Co-ordinator Lorna Dempster said that the Highland Food Bank helped more than 1,700 people in 2007 - an increase of 70% over the previous year, when 1,000 clients were helped

Tuesday, February 26, 2008

Tax Fraudsters

THE tiny principality of Liechtenstein is one of three countries to be blacklisted by the OECD for failure to co-operate with a clampdown on tax avoidance.With a population of around 35,000, Liechtenstein has a banking system shrouded in secrecy.The OECD named it, along with Monaco and Andorra, as a country that could do more to clean up its tax laws. It has also been accused of condoning money laundering, and tax evasion.Non-residents can set up a foundation, allowing them to avoid taxes. Foundations also minimise requirements to file returns or accounts and guarantee anonymity for the investor.There is no need to keep accounts or submit financial statements if the foundation does no business or trade. If the foundation qualifies as an offshore company, it is not subject to income tax or capital gains tax in Liechtenstein. The only requirement is to maintain an "office" in Liechtenstein, but this can be a mailing address.

THE identities of wealthy British tax evaders will be kept secret, even though UK tax authorities now have access to their details, it emerged yesterday. HM Revenue and Customs has admitted it has details of about 100 Britons who evade an estimated £100 million in taxes through Liechtenstein. The names will only be unveiled in the improbable event of a criminal prosecution. A spokesman for HMRC admitted this was "highly unlikely", because it was so difficult to prove tax evasion in court and it would cost taxpayers too much to pursue a trial. Of an estimated 130,000 inquiries into alleged tax fraud last year, only a "handful" ended up in criminal trials.

Not quite the same zeal the State puts in when it comes to hounding those of the working class who may be claiming a little more than the rules and regulations of the so-called welfare system .

Scottish Capitalists - Little Changes

Scottish investment trust boards are still open to the charge that they recruit their members primarily on the golf course, according to research .

Coburn Blair, an Edinburgh-based specialist in recruiting non-executive directors, has analysed the boards of the 48 investment trusts managed by Scottish-based fund managers and concludes: "... in truth, not a lot has changed."

Although some boards now go through a formal selection process, others in practice continue to recruit informally in the way they have always done.
"If you want to join an investment trust board it still certainly helps if you're already known to the chairman or other board members. So, if it's fair to say that the Edinburgh mafia of old is no longer such a cosy clique as it used to be, it is still true that once you're on the board of one investment trust and can demonstrate you know how to hold your knife and fork at the after-meeting lunch, it's usually only a matter of time before you're invited to join a second board and then another and another."

James Ferguson, a former director of Stewart Ivory, holds the record for purely Scottish trusts, sitting on five boards, while Douglas McDougall, the former senior partner of Baillie Gifford, currently holds seven appointments including English trusts. [ This seems to reflect a general trend within capitalism as an American blog reports "Several studies show that those 15-20% of corporate directors who sit on two or more boards, who are called the "inner circle" of the corporate directorate, unite 80-90% of the largest corporations in the United States into a well-connected "corporate community" and that the upper class has it's own exclusive social institutions which include private schools, summer resorts and retreats, and social clubs and gatherings.]
Turnover on the boards is not as high as the industry's trade body, the Association of Investment Companies (AIC), suggests it should be.The AIC recommendation is that directors serve no more than nine years unless they show a good reason, but in practice many serve much longer. The average length of tenure of chairmen in Scotland is 10 years, and Sir William Thomson, now 67, has been on the board of British Assets Trust for 23 years. Sir Angus Grossart gave up the chairmanship of Scottish Investment Trust after 27 years, under pressure from shareholders in 2003, while Sir George Mathewson, 24 years a director of the same trust, recently stood down from two of its key committees but not from the board.

The report says: "The non-execs are paid on average between £10,000 and £20,000 a year and while the highest-paid Scottish chairman earns £63,000, most earn less than £30,000, which is not a fortune - but not bad when one considers the hours required: most boards meet formally no more than six times a year."

Capitalism - Bad for your health

There could be thousands more heart attacks if the Northern Rock crisis was repeated at other banks across the UK, a Cambridge University study suggests. Cardiac deaths surged "briefly and regularly" every time there was a systemic bank failure, the team found.

The report, which examines how banking crises have affected health in the last 40 years, is one of the first to look at the relationship between the two. When a financial crisis hit a developed country, heart attacks rose by 6.4%. This figure was even higher in the developing world, the Globalization and Health journal study suggested. In countries such as India a combination of both poorer banking regulatory systems and inferior health care could lead to an even higher death toll - with deaths rising by as much as 26%, the researchers suggested.

Extrapolated to the UK, more crises in the style of Northern Rock, where funding problems last year triggered the first run on a British bank in more than a century, could lead to as many as 5,000 more fatal heart attacks. The elderly, who would be more likely to be at risk of heart problems in the first place, would be the most likely to feel threatened by risks to their life-long accumulated savings.

Capitalism should come with a health warning .

And if that news depresses you , it is also revealed that the new generation anti-depressants have little clinical benefit for most patients and in most cases had no more effect than taking a dummy pill.

Kids'R'Profits

Most adults in the UK believe that children's well-being is being damaged because childhood has become too commercial, a lifestyle poll has found. The children's market is worth an estimated £30 billion a year.

The Children's Society said adults had to "take responsibility for the current level of marketing to children...To accuse children of being materialistic in such a culture is a cop-out," said the chief executive of the society. "Unless we question our own behaviour as a society we risk creating a generation who are left unfulfilled through chasing unattainable lifestyles."

Dr. Rowan Williams, the Archbishop of Canterbury, who is patron of the inquiry, said: "Children should be encouraged to value themselves for who they are as people rather than what they own. The selling of lifestyles to children creates a culture of material competitiveness and promotes acquisitive individualism at the expense of the principles of community and co-operation." [ The capitalist press certainly aren't making this remark by the Archbishop front page headline news as they did with his Sharia law comment , are they ?]

One member of the childhood inquiry panel has warned that the commercial pressures on youngsters may have damaging psychological effects. Professor Philip Graham, Emeritus Professor of Child Psychiatry at the Institute of Child Health in London, said:
"One factor that may be leading to rising mental health problems is the increasing degree to which children and young people are preoccupied with possessions; the latest in fashionable clothes and electronic equipment. Evidence both from from the United States and from the UK suggests that those most influenced by commercial pressures also show higher rates of mental health problems," .

The Good Childhood report found:
"Advertising to children was ruthless and exploitative and they should not be viewed as small consumers, particularly for younger children with impressionable minds."