OOPS, THERE GOES ANOTHER WARHEAD

"For all the recent uproar over Iran's nuclear program, little attention has been paid to the fact that the country which first provided Tehran with nuclear equipment was the United States. In 1967, under the "Atoms for Peace" program launched by President Eisenhower, the US sold the Shah of Iran's government a 5-megawatt, light-water type research reactor. This small dome-shaped structure, located in the Tehran suburbs, was the foundation of Iran's nuclear program. It remains at the centre of the controversy over Iranian intentions, even today."
(Yahoo News, 2 October) RD

THE SUPER RICH

"Castles in France. Islands in the Caribbean. Private jets. With a collective $1.27 trillion at their disposal, the members of The Forbes 400 could buy almost anything. How about a country? A quick glance at the CIA Fact Book suggests the individual fortunes of many Forbes 400 members are as big as some of the world's economies. Bill Gates, America's richest man with a net worth of $50 billion, has a personal balance sheet larger than the gross domestic product (GDP) of 140 countries, including Costa Rica, El Salvador, Bolivia and Uruguay. The Microsoft (MSFT) visionary's nest egg is just short of the GDP of Tanzania and Burma. Warren Buffett, who lost $10 billion in the past 12 months and is this year's Forbes 400 biggest dollar loser, still has a fortune the size of North Korea's economy at $40 billion." (Yahoo Finance, 2 October) RD

Food for Thought 2

How capitalism works

1 – Hope for cheap HIV drugs dims reports the Toronto Star (19/Sept/09).
Canada's Access to Medicines Regime is now five years old but only one country, Rwanda, has benefited. Progress at a glacial pace is one way to prevent change.
2 – Apparently Osama Bin Laden's ex body guard told The Toronto Star that he, Laden, didn't target civilians. He hit targets and civilians happened to be around! But wait! Isn't that exactly what "collateral damage" is that our `leaders' use to excuse murder? Seems they're all the same, surprise.
3 - More obfuscation – The news is that US taxpayers are now profiting from the bailouts of the financial system( New York Times). They are touting $4 billion in profits but ignore that trillions were spent in the first place. Sounds good anyway.
4 – Despite the well-earned reputation of the dirtiest site on earth for the Alberta tar sands oil project, the Canadian government is expected to formulate its climate change plan so that Alberta and Saskatchewan could carry on as usual, while the rest of the country, with much smaller problems vis-à-vis pollution would be restricted. You can bet that they will be screaming, not about beating climate change, but about the advantage given to the Western Provinces. John Ayers

WELCOME TO CAPITALISM

Modern Slave

"After crossing half of Africa and surviving a perilous boat trip from Libya in search of a better life in Italy, Boubacar Bailo is now contemplating suicide. One of an army of illegal immigrants hired to harvest tomatoes in the Puglia region, Bailo squats in a fetid cardboard shack restlessly waiting for a call to the fields. Every year thousands of immigrants, many from Africa, flock to the fields and orchards of southern Italy to scrape a living as seasonal workers picking grapes, olives, tomatoes and oranges. Broadly tolerated by authorities because of their role in the economy, they endure long hours of backbreaking work for as little as 15-20 euros ($22-$29) a day and live in squalid makeshift camps without running water or electricity."

(Reuters, 28 September) RD

who owns the north pole - part 18

The Northwest Passage should have a more Canadian name to assert Canada's claim over the Arctic waterway, says Yukon Liberal MP Larry Bagnell.Bagnell presented a motion in the House of Commons this week, calling on the government to rename the route the Canadian Northwest Passage or the Canadian Arctic Passage.A name change could make to clear to the rest of the world that the Northwest Passage is part of Canada, Bagnell said.
"We claim it to be part of our internal waters, which gives us a lot more authority and control over it," he told CBC News

The United States and Europe have claimed that the Northwest Passage is an international waterway, while Canada has held its position that it's an internal passage.

A SHORT BRUTAL LIFE

"As India's rich get richer; the child death rate soars in the slums. Despite living in the world's fastest-growing economy, millions of Indian mothers do not have access to the care their children desperately need. India's growing status as an economic superpower is masking a failure to stem a shockuing rate of infant deaths among the poorest people. Nearly two million children under five die every year in India one every 15 seconds - the highest number anywhere in the world. More than half die in the month after birth and 400,000 in their first 24 hours." (Observer, 4 October) RD

Bankruptcy Millions

Oct. 5: For decades, Simmons Bedding Company, an iconic American business, was a
prized holding for top private equity firms. But the mattress maker has fallen
into bankruptcy for the first time in 133 years.

For most of the 133 years since its founding in a small city in Wisconsin, the Simmons Bedding Company enjoyed an illustrious history.
Presidents have slumbered on its mattresses aboard Air Force One. Dignitaries have slept on them in the Lincoln Bedroom. Its advertisements have featured Henry Ford and H. G. Wells. Eleanor Roosevelt extolled the virtues of the Simmons Beautyrest mattress, and the brand was immortalized on Broadway in Cole Porter’s song “Anything Goes.”
Its recent history has been notable, too, but for a different reason.
Simmons says it will soon file for bankruptcy protection, as part of an agreement by its current owners to sell the company — the seventh time it has been sold in a little more than two decades — all after being owned for short periods by a parade of different investment groups, known as private equity firms, which try to buy undervalued companies, mostly with borrowed money.
For many of the company’s investors, the sale will be a disaster. Its bondholders alone stand to lose more than $575 million. The company’s downfall has also devastated employees like Noble Rogers, who worked for 22 years at Simmons, most of that time at a factory outside Atlanta. He is one of 1,000 employees — more than one-quarter of the work force — laid off last year.
But Thomas H. Lee Partners of Boston has not only escaped unscathed, it has made a profit. The investment firm, which bought Simmons in 2003, has pocketed around $77 million in profit, even as the company’s fortunes have declined. THL collected hundreds of millions of dollars from the company in the form of special dividends. It also paid itself millions more in fees, first for buying the company, then for helping run it. Last year, the firm even gave itself a small raise.
Wall Street investment banks also cashed in. They collected millions for helping to arrange the takeovers and for selling the bonds that made those deals possible. All told, the various private equity owners have made around $750 million in profits from Simmons over the years.
How so many people could make so much money on a company that has been driven into bankruptcy is a tale of these financial times and an example of a growing phenomenon in corporate America.
Every step along the way, the buyers put Simmons deeper into debt. The financiers borrowed more and more money to pay ever higher prices for the company, enabling each previous owner to cash out profitably. New York Times 5th October

Food for Thought

- Quebec leads the way in fighting poverty (Carol Goar, Toronto Star, 09/Sept/09) with a 40% reduction over the last decade. The province now strives to lift the remaining 875 000 above the poverty line, and is winning the war according to UQTR professor who assembled the statistics.

- Other places can't make that claim. Canada, as a whole, saw poverty reduced in 2007, but the expectation is that 2008 figures will climb back to where they were previously, or worse. Women, as usual, lead the way, especially women living on their own.

- The summer job picture was so bad that many students will have to take on increased debt to continue their studies. U of Toronto has seen a 12% increase in financial aid applications.

- Labour Day 2009 dawned with 500 000 more jobless Canadians than last year, and job losses are expected to continue.

- And that's the way it goes under capitalism. Gains in one area are sure to be lost in another, and so it will continue until private ownership is defeated. John Ayers

THE GOOD OLD DAYS

The Pope and other religious zealots always hark back to a supposed golden age when Christianity was all-powerful throughout the world. The trouble with modern society according to them is down to the lessening of Christian morals. Here is the latest example of this fallacy.
"Brno, Czech Republic – Pope Benedict XVI said Sunday that all of Europe — and not only this ex-communist country — must acknowledge its Christian heritage as it copes with rising immigration from other cultures and religions. The second day of Benedict's pilgrimage to this highly secular country was marked by a joyous open-air Mass that drew tens of thousands of pilgrims and a sober message for the entire continent. "History has demonstrated the absurdities to which man descends when he excludes God from the horizon of his choices and actions," Benedict said." (Associated Press, 27 September)
Ah, the good old days of Christian supremacy. The burning of so-called witches, the torture of heretics and the mass slaughter of the church-sponsored crusades. Not to mention the support of dictatorships and the suppression of science when it did not accord with Christian "truths". RD

Who Owns the North Pole - part 17

Our Nordic Saga simply carries on and on , as the war drums continue to beat .Further to previous post we now have a Times article reporting that competition for resources in the Arctic Circle could provoke conflict between Russia and Nato, a newly appointed commander at the alliance warned yesterday. Admiral James Stavridis said that military activity and trade routes would be potential sources of competition around the polar cap.

His assessment comes after warnings from Anders Fogh Rasmussen, the Nato Secretary-General, who said this week that climate change had “potentially huge security implications” for Nato. The thinning ice cap is opening up a new Northwest Passage trade route, while it is estimatedthat previously inaccessible oil worth $90 billion (£56 billion) lies beneath ice in the Arctic Circle.

DEMOCRACY, US STYLE

Gore Vidal, novelist and essayist in press interview. "I would have liked to have been president, bit I never had the money. I was a friend of the throne. The only time I envied Jack was when Joe (JFK's father) was buying him his Senate seat, then the Presidency. He didn't know how lucky he was." (Times, 30 September) RD

WHAT HOUSING PROBLEM?

This overview shows the district of Mongkok in Hong Kong.

"Home prices in overcrowded Hong Kong have traditionally been high, but when it comes to having the most expensive residential properties in the world, the Chinese metropolis has never seriously challenged cities like New York, London and Tokyo. Until now. In another demonstration of how the recession is shaking up the global financial order, two luxury Hong Kong apartments have just gone on the market for a stunning $38.7 million each. If the developer, Sun Hung Kai, finds buyers at that price, the three-level penthouse dwellings, perched atop the 93-storey Cullinan towers with sweeping views of Hong Kong's harbour, could well qualify as the world's most expensive apartments." (Time, 24 September) RD

RECRUITMENT REALITY

"The number of former servicemen in prison or on probation or parole is now more than double the total British deployment in Afghanistan, according to a new survey. An estimated 20,000 veterans are in the criminal justice system, with 8,500 behind bars, almost one in 10 of the prison population. The proportion of those in prison who are veterans has risen by more than 30% in the last five years. The study by the probation officers' union Napo uncovers the hidden cost of recent conflicts. The snapshot survey of 90 probation case histories of convicted veterans shows a majority with chronic alcohol or drug problems, and nearly half suffering from post-traumatic stress disorder or depression as a result of their wartime experiences on active service." (Guardian, 24 September) RD

SPARE PARTS FOR SALE

"British victims of the credit crunch are offering to sell their kidneys for £25,000 or more to help pay debts, an investigation by The Sunday Times has revealed. At least a dozen adverts have appeared on the internet offering kidneys for sale from British “donors”. ...Nearly 7,000 people in the UK are waiting for kidney transplants and 300 died last year while on the waiting list." (Sunday Times, 27 September) RD

ALL RIGHT FOR SOME

"What recession? Harvey Nichols department store in Knightsbridge says it has just sold a £15,000 hand-made leather handbag, by US designer Lana Marks. The sale of the multi-coloured alligator leather Positano bag shows that high-end shoppers are still prepared to pay huge sums for a handbag. ...Classic French couture brands such as Lanvin are also enjoying the flight to quality, she said, while classic leather jackets and £1,000-a-pair distressed jeans from Balmain are flying off the shelves." (Observer, 27 September) RD

THE HIDDEN RECESSION

"The biggest and most secretive gathering of ships in maritime history lies at anchor east of Singapore. ...Here, on a sleepy stretch of shoreline at the far end of Asia, is surely the biggest and most secretive gathering of ships in maritime history. Their numbers are equivalent to the entire British and American navies combined; their tonnage is far greater. Container ships, bulk carriers, oil tankers - all should be steaming fully laden between China, Britain, Europe and the US, stocking camera shops, PC Worlds and Argos depots ahead of the retail pandemonium of 2009. But their water has been stolen. They are a powerful and tangible representation of the hurricanes that have been wrought by the global economic crisis; an iron curtain drawn along the coastline of the southern edge of Malaysia's rural Johor state, 50 miles east of Singapore harbour. ...It is so far off the beaten track that nobody ever really comes close, which is why these ships are here. The world's ship owners and government economists would prefer you not to see this symbol of the depths of the plague still crippling the world's economies."

(Daily Mail, 28 September) RD

CONTRADICTION

Prince Charles still drives an Aston Martin given to him by the Queen on his 21st birthday

"The Prince of Wales is urging people to give up their cars in favour of walking and public transport to try to reduce carbon emissions. The Prince, who has two Jaguars, two Audis, a Range Rover and still drives an Aston Martin given to him by the Queen on his 21st birthday, said developers had a duty to put public transport and the pedestrian at the heart of their housing schemes." (Daily Telegraph, 21 September) RD

A MURDEROUS SYSTEM (3)

"As of Sunday, Sept. 20, 2009, at least 4,345 members of the U.S. military had died in the Iraq war since it began in March 2003, according to an Associated Press count. The figure includes nine military civilians killed in action. At least 3,473 military personnel died as a result of hostile action, according to the military's numbers. The AP count is three fewer than the Defense Department's tally, last updated Friday at 10 a.m. EDT. The British military has reported 179 deaths; Italy, 33; Ukraine, 18; Poland, 21; Bulgaria, 13; Spain, 11; Denmark, seven; El Salvador, five; Slovakia, four; Latvia and Georgia, three each; Estonia, Netherlands, Thailand and Romania, two each; and Australia, Hungary, Kazakhstan and South Korea, one death each." (Associated Press, 20 September) RD

A MURDEROUS SYSTEM (2)

Gulbenis Badurova, 33, in her house with a photograph of her husband Sirazhutdin
Umarov, 32 who was kidnapped, tortured and killed

"It is unreported in Russia and virtually unnoticed by the rest of the world. Yet just five months after the long war in Chechnya was officially declared to be at an end, the northern Caucasus has seen a big upsurge in violence. Five hundred people have been killed so far this year, double last year’s toll. It has become the Kremlin’s most pressing problem after the economic crisis. In Chechnya itself, where security forces commanded by its 32-year-old president, Ramzan Kadyrov, have been accused of numerous atrocities, there have been nearly 90 abductions this year. The targets included Natalia Estemirova, a leading human rights campaigner who was kidnapped and murdered in July." (Sunday Times, 20 September) RD

A MURDEROUS SYSTEM

Mexican Army soldiers secure the site were the two Federal Police officers were
murdered, in Ciudad Juarez

"A new spate of violence has pushed the homicide rate in the Mexican border town of Ciudad Juarez to an unprecedented 1,701 murders, breaking the record set just a year earlier in 2008. Officials reported 14 new violent deaths over the weekend in the town, which sits across the border from Texas, pushing the homicide rate past last year's record level of 1,653 murders. In all, 22 people were killed on Saturday night and Sunday in the two Mexican states of Sonora and Chihuahua, which border the US states of Arizona, New Mexico and Texas." (Yahoo News, 20 September)