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 .

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

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."

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

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."

MISERY IN THE USA

"By virtually every indicator, 2007 was a dismal year for American workers. Job growth slowed, unemployment jumped and wages lost what little ground they had gained against inflation since 2003. There is one sliver of good news: the percentage of American workers who belong to a union rose for the first time in three decades. ...There is little doubt that American workers need unions. Wages today are almost 10 percent lower than they were in 1973, after accounting for inflation. The share of national income devoted to workers’ wages and benefits is at its lowest since the late-1960s, while the share going to profits has surged. The decline in unionization has been a big part of the reason that workers have lost so much ground." (New York Times, 7 February) RD

MIDDLE EAST SUPRESSION

"Predictability is a trait that few would ascribe to the Middle East, yet Arab interior ministers have gathered quietly, every winter for the past 25 years, to talk about how better to secure the regimes they serve. At this year's summit, in Tunis, the security chiefs agreed to toughen rules on publishing, recording or distributing material that might promote terrorism. A worthy goal, surely, except that the region's authorities have a habit of defining as crimes the kind of things their critics would deem legitimate dissent. Despite the flourishing of alternative media, such as satellite television and internet blogs, that challenge once-impregnable state monopolies on the flow of news, governments keep finding new ways to suppress contrary views. Whereas the dictatorships of old snuffed out opponents or chucked them in jail, today's softer incarnations achieve similar silence by subtler means. Hyper-regulation via catch-all laws, plus financial carrots and sticks, tend to replace cruder direct control. In draconian Syria, the vague crime of “disseminating false information” carries a stiff jail sentence. But as many journalists in relatively liberal Morocco have discovered, to criticise public officials is to risk libel charges that carry ruinous fines." (Economist, 7 February) RD