Chinese in Antarctica

Further to this post on our companion blog Socialism Or Your Money Back , the BBC reports that China is building its third research station in Antarctica, shoring up its presence just weeks after the UK and Chile made renewed territorial claims. Argentina has also said it intends to present a claim to the UN.
Almost 200 construction workers are heading for the southern continent, the state-run Xinhua news agency says. They will build facilities including a space observatory, radar station and sewage discharge system.

Mineral mining is banned in Antarctica, but analysts say this is not stopping countries from jockeying for position. Competition for territorial and economic rights has heated up as melting polar ice caps have introduced the possibility of exploiting the previously inaccessible seabed. Countries have until May 2009 to ask the United Nations to consider their right to the seabed.

It is expensive being rich

It seems, it is the rich who have it hard. Luxury goods are rising in price three times faster than their more mundane consumer counterparts.

Robby Hilkowitz, executive director of the Stonehage Group which helps the world's super-wealthy manage their incomes said ;-
"Global wealth is growing at an unprecedented rate and as it increases they want more luxury goods to meet their lifestyle needs. With status items, the more expensive they become the more desirable they become..."

There are some 800 US dollar billionaires in the world, a figure that rose by 15 per cent last year. They are among the class of ultra-high net worth individuals with a personal fortune in excess of £25m of net investable assets. The second tier covered by the survey, so-called high worth individuals with more than £5m to spare, grew by 20 per cent.

* School Fees (Up 6.8 per cent)
With a history dating back to the time of Pope Alexander III, Westminster offers one of the most desirable old school ties around. One term's fees for two seniors cost £17,304 in 2007.
* Outdoor activities (Up 8.3 per cent)
Blasting away on the grouse moors of northern Britain was once the preserve of the landed gentry. Today any old hedge fund manager can have a go with a two-day shoot costing £3,600 in 2007.
* Vintage wines (Up 116.9 per cent)
Surely there can be no more famous wine than that emanating from the Rothschild's family vineyard in the Medoc? But three cases of Lafite Rothschild 2000 will set you back £9,250 this year.
* Exclusive facilities (Up 20 per cent)
Sweat with the best, or at least the richest, of them at The Dorchester Gym and Spa. A year's membership cost £1,800 in 2007.
* Luxury accessories (Up 26.7 per cent)
Patek Philippe once made watches for Queen Victoria and Tchaikovsky. The Swiss manufacturer could make one for you too. A limited edition Calatrava cost £19,000 in 2007.
* Football tickets (Up 25 per cent)
Chelsea FC remains the footballing choice of the west London glitterati . One season's executive box hire at Stamford Bridge cost £117,500 in 2007.

Fuel Poverty

Claire Telfer, of Save the Children said :-

"Another winter is fast approaching and far too many children are living in cold, damp homes. The consequences of living in fuel poverty are misery, discomfort, ill health and debt."

Some 600,000 households and 100,000 children in Scotland have been hit by rocketing fuel prices between 2003 and 2006 .

A household is said to be in fuel poverty if it needs to spend more than 10% of of its income to maintain satisfactory heating, according to a UK government definition.

Public Discussion Meeting

...Defaulting US mortgages cause a British bank to crash...Global debt hits a 100 TRILLION dollars...
...Climate change will create widespread flooding , great loss of life , and mass migrations of peoples
....Land-grab for mineral wealth in the Arctic and Antarctica ....
...Oil prices soar as war fears rise on the Turkish-Iraqi border.
..Experts claim future wars will be fought over water...

The Socialist Party wants an end to the market system of buying and selling and of production solely for profit .
We'll be taking a look at the economics of capitalism and the environment – And asking , does it all add up ?

PUBLIC MEETING: FRIDAY 9TH NOVEMBER at 7-30PM
The Quaker Meeting House
Victoria Terrace ( above Victoria St )
Edinburgh

A short talk and then a general discussion will take place .
In the Chair : Alan Johnstone (Edinburgh Branch)
Speaker : Richard Donnelly (Glasgow Branch)

All Welcome Admission Free

Everybody is reading it

The Standard Online | Downloads | | Contents | | Editorial | | Index |

THE WASTEFUL SOCIETY

It is a basic premise of the case for socialism that capitalism is a wasteful society. Just how wasteful it has become was illustrated by the following news item. "The U.S. government spent $43.5 billion on intelligence in 2007, according to the first official disclosure under a new law implementing recommendations of the Sept. 11 commission. National Intelligence Director Mike McConnell released the newly declassified figure Tuesday. In a statement, the DNI said there would be no additional disclosures of classified budget information beyond the overall spending figure because "such disclosures could harm national security." How the money is divided among the 16 intelligence agencies and exactly what it is spent on is classified. It includes salaries for about 100,000 people, multibillion dollar secret satellite programs, aircraft, weapons, electronic sensors, intelligence analysts, spies, computers and software. Much of the intelligence budget - about 70 percent - goes to contractors for the procurement of technology and services including analysis, according to a May 2007 chart from the DNI's office. Intelligence spending has increased by a third over 10 years ago, in inflation adjusted dollars, according to Steve Kosiak at the Center for Strategic and Budgetary Assessments." (Yahoo News, 30 October)
100,000 workers spending their days snooping on other workers. Madness! RD

SUFFER THE LITTLE CHILDREN

Much is made of the tremendous development of capitalism in India over the last few years, but there is a terrible price to be paid in human suffering. "Child workers some as young as 10, have been found working in a textile factory in conditions close to slavery to produce clothes that appear destined for Gap Kids, one of the most successful arms of the high street giant. Speaking to The Observer, the children described long hours of unwaged work, as well as threats and beatings. ... According to one estimate, more than 20 per cent of India's economy is dependent on children, the equivalent of 55 million youngsters under 14." (Observer, 28 October) RD

MORE TROUBLE AHEAD

Politicians like to paint a picture of working class bliss where everybody has an increasing standard of living, but the reality is somewhat different. "The number of repossessed homes looks set to soar next year to levels not seen since the 1990s house price crash, it was claimed today. At the same time, house prices will edge ahead by just 1% in 2008 and property sales will fall by 15%, according to the Council of Mortgage Lenders (CML). The group expects the number of repossessions to rise by 50% during the year, rising from 30,000 this year to 45,000 in 2008. ...The number of people who are in arrears of at least three months is also set to increase, with 170,000 people expected to have problems keeping up with their mortgage repayments next year, compared with an estimated 145,000 this year." (Guardian, 2 November)
The bright words of politicians will appear somewhat tarnished to workers who lose their houses. RD

WALL STREET SHUFFLE

We are always being told that capitalism is a competitive system that rewards success and punishes failure, but what are we to make of the following? "Merril Lynch's directors may be weighing E.Stanley O'Neal's future, but one thing is already guaranteed: a payday of at least $159 million if he steps down. Mr. O’Neal, the company’s chairman and chief executive, is entitled to $30 million in retirement benefits as well as $129 million in stock and option holdings, according to an analysis by James F. Reda & Associates using yesterday’s share price of $66.09. That would be on top of the roughly $160 million he took home in his nearly five years on the job. Under Mr. O’Neal, Merrill moved aggressively into lucrative businesses like the packaging of subprime mortgages and other complex debt securities. ...But those big bets appeared to go bust this week. Merrill announced an $8.4 billion write-down, raising questions about whether Mr. O’Neal will keep his job. One thing that he surely will hold onto, though, are the giant paychecks he has collected. “I lay the blame at the foot of the board,” Frederick E. Rowe Jr., a money manager and president of Investors for Director Accountability. “He was paid a tremendous amount of money to create a loss that is mind-boggling, and he obviously took risks that should never have been taken.” (New York Times, 27 October)
He managed to lose $8.4 billion for the company and can claim $159 million for his efforts. Who says capitalism isn't crazy? RD

WAR IS GOOD - FOR SOME

When it comes to making money there is no such thing as nationalism, loyalty or principles. Take this example of swopping allies when it makes commercial sense
"For the past four years Tomislav Damnjanovic has played a crucial role in the United States’ wars in Iraq and Afghanistan. Since 2003, he has delivered millions of rounds of ammunition, guns, grenades and mortars to the governments of Iraq and Afghanistan, United Nations officials say, facts he does not dispute. His aircraft have even been used to shuttle supplies between American bases in Iraq, saving troops from having to make hazardous trips by land. But it was not always so. For Mr. Damnjanovic, the work has been an unexpected twist in a career dominated not by serving American interests, but by dodging law enforcement agencies, and by smuggling weapons to American opponents and countries under United Nations sanctions, like Libya, and to other parts of Africa." (New York Times, 7 October)
Mr Damnjanovic made millions but his guns, grenades and mortars killed thousands. RD

THE HIGH COST OF DYING

When politicians are confronted with problems like disease and hunger they often respond that they would love to deal with those problems but they are far too expensive to deal with at present. No such concern prohibits them when it comes to wagering war. "The cost of the US’s operations in Iraq and Afghanistan, together with wider efforts in the “war against terror”, could reach $2,400bn (£1,175bn, €1,700) over the next decade, with interest payments representing more than a quarter of the total, the US Congressional Budget Office said on Wednesday. The figures, presented to the House of Representatives budget committee by Peter Orszag, the CBO’s director, are based on an assumption that US troops in Iraq and Afghanistan will be reduced to a total of 75,000 by 2013 and stay at that level for a further four years." (Financial Times, 24 October) RD

CALIFORNIAN NIGHTMARE

The dreadful fires in California that led to death and destruction were well reported in the British press, but what was hardly covered was the plight of the immigrant workers. "Out of the burning brush, from behind canyon rocks, several immigrants bolted toward a group of fire-fighters, chased not by the border police but by the onrush of flames from one of the biggest wildfires this week. ... Immigrants from south of the border, many illegal, provide the backbone of menial labour in San Diego, picking fruit, cleaning hotel rooms, sweeping walks and mowing lawns. The wildfires, one of the biggest disasters to strike the county, exposed their often-invisible existence in ways that were sometimes deadly. The four bodies were found in a burned area in south-eastern San Diego County, a region known for intense illegal immigration. ...Terri Trujillo, who helps the immigrants, checked on those in the canyons, urging them to leave, too, when she left her house in Rancho Peñasquitos ahead of the fires. Ms. Trujillo and others who help the immigrants said they saw several out in the fields as the fires approached and ash fell on them. She said many were afraid to lose their jobs.“There were Mercedeses and Jaguars pulling out, people evacuating, and the migrants were still working,” said Enrique Morones, who takes food and blankets to the immigrants’ camps. “It’s outrageous.” Some of the illegal workers who sought help from the authorities were arrested and deported." (New York Times, 27 October)
What a comment on capitalism, some workers live in such poverty and insecurity they give up their lives in an attempt to keep a menial weekly wage. RD

Whats good for the goose - is good for the gander

Ecuador's President Rafael Correa said Washington must let him open a military base in Miami if the United States wants to keep using an air base on Ecuador's Pacific coast.
Correa has refused to renew Washington's lease on the Manta air base, set to expire in 2009.

"We'll renew the base on one condition: that they let us put a base in Miami -- an Ecuadorean base," Correa said in an interview during a trip to Italy."If there's no problem having foreign soldiers on a country's soil, surely they'll let us have an Ecuadorean base in the United States."

More Money for the Wealthy

Yet again Socialist Courier reports that the rich are getting richer

The earnings of top company executives in the UK have doubled in the past five years to a new record of more than £3 million each, research revealed today. Total pay of chief executives of the top 100 firms has reached "new heights" because of ever-increasing incentive payments, according to a study by pay analysts Incomes Data Services.

It follows reports from earlier in the month by accounting giant KPMG that chief executives enjoyed an average 16% rise in total remuneration in 2007, while other executive directors on company boards saw their base salaries increase at a similar rate. The study also found that earnings for chief executives of the FTSE-250 firms have increased by 90% since 2001-02 to an average of £1.4m each. The salaries of directors in FTSE-350 firms rose by 9.3% in the past year alone compared with wage settlements across the economy as a whole of 3.5%, said IDS. Chief executives in FTSE-100 firms were paid average salaries of £737,000 in the last financial year, but total earnings averaged £3,174,000 when incentive payments and share options were added.

In August, Sir Fred Goodwin, chief executive of the Royal Bank of Scotland, along with other top managers, was awarded shares which will see him take home around £3.6m, three times his basic salary, as well as his annual bonus. Standard Life's top three executives received more than £5m in pay last year, despite shedding more than 5000 jobs in the past three years. Sandy Crombie, Standard Life's chief executive, received more than £2.2m, a rise of £870,000 on 2005.

TUC general secretary Brendan Barber said:

"Britain's top directors clearly have no shame. Year in, year out they have been paying themselves far bigger rises than they are prepared to pay their staff while lecturing the rest of us on the need for low taxes. It beggars belief that they are somehow working twice as hard as five years ago."

Steve Tatton, editor of the IDS Executive Compensation Review and one of the report's authors, said:

"It is time the rest of us gave a big raspberry to all their hand-wringing excuses of needing the incentives and matching the international going rate. This is not just morally offensive greed, it is bad for the rest of society too. The growth of a new class of the super-rich, semi-detached from the rest of society, hits social cohesion, feeds into house price inflation and harms staff loyalty and commitment."

The days grow longer

The unpaid working time we give to our bosses .

Socialist economics is based upon the Labour Theory of Value which is the Marxian explanation of our exploitation . Unpaid labour is the source of all surplus value. Normally , this takes place in the work-shop or office from 8 to 5 but more and more the time of the working day is growing in ways that we are not immediately aware of giving to the employers . When capitalists buy a worker’s labour they buy the worker’s capacity to work for a full day . Nowadays , with factories seldom at your doorstep , workers are forced to travel to and fro their workplaces . This travelling time we also give free to the bosses .

The amount of time that workers spend commuting between home and their workplace has rocketed in the past 10 years, with millions of workers now taking at least an hour to get to the office, new research shows. TUC research found the number of people who travel for more than an hour to get to work has risen by as much as 40% and that around 145,000 people in Scotland are now setting off for work earlier and getting home later than they did 10 years ago and has increased by 1.5 million to 5.5 million across Britain. Not-for-profit group Work Wise UK said Britons face the second longest commutes in Europe, behind the Netherlands, averaging 8.7 miles a day. One-in-ten commuters has a daily journey in excess of two hours, and 3 per cent of employees are "extreme commuters" averaging three hours a day.

TUC general secretary Brendan Barber said: "We work some of the longest hours in Europe, and on top of this have to endure the second-longest daily commute in Europe - on average 54 minutes per day."

The Rich List

The new Estate Gazette Rich List reveals that the 500 wealthiest UK property owners have amassed a combined net worth of £117 billion . The average individual fortune in Britain was just over £230 million for each of the 500 Rich List entrants in Britain .

Sir Tom Hunter , Scotland's first billionaire , yesterday strengthened his place as Scotland's most affluent man when a new rich list found the value of his land and property was 35% higher than last year. His holdings are now worth £1.05 billion and tops the list of Scots with the most valuable collection of properties in the Estates Gazette Rich List 2007.

Although the combined personal holdings of the head of the West Coast Capital investment firm has grown by £270 million since last year according to the research, it still only makes Sir Tom the 19th biggest land and property investor in Britain, a drop of one place from last year.

Nevertheless, Hunter's property pot remains only a fraction of the £7 billion assets credited to the most wealthy British magnate in the survey, the Duke of Westminster, whose holdings were worth £400m more than last year.

Sir Tom Hunter's property fortune is worth 30% more than the £810 million portfolio amassed by Scotland's second-richest magnate, Keith Miller, the 58-year-old who has spent 13 years as chief executive of the Edinburgh-based Miller Group, the UK's largest privately owned housebuilding, property development and construction business. Mr Miller's personal land and property fortune is thought to have grown by nearly £100 million in the past year but he has dropped from 22 to 30 in the British league table.

Rangers chairman Sir David Murray, who earlier this year bought what at the time was Edinburgh's most expensive home, in affluent Barnton for £4.5 million , slots into third place on the Scots property rich list, with a portfolio worth of £750 million which is £100 million more than last year. His fortune is ranked the 32nd highest in Britain after being placed 23rd in last year's survey.

SCOTLAND'S TOP FIVE

1 (19 in UK list) Sir Tom Hunter £1.05bn

2 (30) Keith Miller and family £810m

3 (32) Sir David Murray £750m

4 (76) Robert Adair £372m

5 (78) Brian Kennedy £350m

UK AND IRELAND'S TOP FIVE

1 The Duke of Westminster, Grosvenor Group £7bn

2 David and Simon Reuben, Trans-World Metals £3.5bn

3 Sean Quinn and family, Quinn Group £3.05bn

4 Earl Cadogan and family, the Cadogan Group £2.6bn

5 Simon Halabi, Buckingham Securities £2.5bn

Sickness and Wealth

We said it before and we say it again , the poor pay the price of their poverty with their lives . The wide gap in life expectancies between rich and poor persists .

A male lawyer can expect to live over seven years longer than the man who empties his wastepaper bin suggests Office for National Statistics figures .
Male and female non-manual workers saw the greatest increase in life expectancy in the 33 years covered by the study .

Non-manual man: 79.2
Manual man: 75.9
Non-manual woman: 82.9
Manual woman: 80

One idea is that the less affluent started to give up smoking much later than their richer neighbours - the 1970s compared to the 1950s - and the health improvements seen by this change take about 30 years to materialise.

However :-

"If we don't start seeing changes as a result of this, then it means there are other major factors at play," says Danny Dorling, professor of human geography at Sheffield University.

Such as the rich are getting richer, and can effectively "buy" longer lives through more regular holidays and leisure activities.

Or that the very nature of people's work, and not just the lifestyle it affords them, can have an impact on longevity.

"Monotonous jobs where workers have little control over what they do can be much more stressful than more high-powered jobs, where people have much more freedom," said Professor Dorling. "And that ultimately may take its toll."

OIL RICHES - FOR SOME

"Angola is gushing oil, pumping about 2 million barrels a day, more than any other African country except Nigeria. The International Monetary Fund projects a 24 percent economic growth this year — one of the fastest rates in the world. The government is taking in two and a half times as much money as it did three years ago. But Angolans, by many indications, remain as poor as ever. The poverty rate is a matter of debate: the government claims a 12 percent drop in the past five years; analysts for the Catholic University of Angola’s research centre say two in three Angolans still live on $2 or less a day, the same percentage as in 2002. Still, no one disputes that most Angolans face appalling living conditions, sky-high infant mortality rates, dirty water, illiteracy and a host of other ills." (New York Times, 14 October)
Inside capitalism the whole purpose of wealth production is to make profits for the owners. Some have to live on less than $2 a day while immense fortunes are enjoyed by the capitalist class. That is how capitalism works. RD

Food stamps soon ?

A charity is to begin handing out food vouchers to destitute Scots amid claims they are being let down by the welfare system. The Stirling Citizen Advice Bureau will launch the radical scheme after being inundated by desperate pleas for help.

"We have noticed a significant increase in the number of people coming to Stirling Cab with no money for food. The main reason appears to be the time it takes to get benefit paid since the DWP have adopted a call centre model, based in Middlesbrough. It can take up to eight weeks to receive money from the date you call to claim..."

A director of the Poverty Alliance, described it as "a desperate response to a desperate situation"

THE PRICE OF GOLD

The recent rise in the price of gold to $750 per troy ounce has led to mines being sunk to even more dangerous levels. "South Africa's gold companies, already mining at the world's deepest depths, are looking to plumb even deeper veins in a new gold rush spurred by soaring prices. The deeper miners go the richer the ore being uncovered. The price in dangers, though, includes rock falls, poisonous gas explosions, flooding and earthquakes. That has stirred up concerns about the safety of miners, who experts say have the worst lot among South Africa's industrial workers. Some foreign companies have been deterred by the risks here. But Gold Fields, the country's second-biggest producer after AngloGold Ashanti, is ready to set a new record, digging more than 2.5 miles at its Driefontein mine. A worker was killed there earlier this month by a tremor at just under 2 miles. For comparison, the deepest mine elsewhere in the world is in Ontario, at 1.5 miles. Harmony Gold Mining Co. Ltd., the world's fifth largest producer, wants to develop a new mine below an existing one at Elandsrand, at a depth of about two miles, which it says would extend the life of the mine by 18 years. ..Of 119 people reported killed in South African mines last year, 113 died in gold mines. ...A South African commission in 1994 said each ton of gold produced in South Africa cost one life and 12 serious injuries. South Africa produces about 600 tons of gold a year. ..In August, a mineworkers' strike won wage increases of 7.5 percent to 10 percent. The average miner makes $365 to $511 a month." (Yahoo News, 13 October) As prices soar and profits too there is no risk the owners won’t take - with workers' lives! RD