Seniors Taking the Hit for Kleptocrats’ Sins

“Elderly Americans with fixed incomes are increasingly being compelled to make seemingly impossible decisions, Shapiro says, such as choosing between paying their housing bills or their medical costs.

More than 54% of all senior households “do not have sufficient financial resources to meet median projected expenses based on their current financial net worth, projected Social Security and pension incomes,” according to the Brandeis study.

Some seniors are moving in with their children because they can’t pay all the bills. Census reports show multigenerational families are on the rise in part, experts say, because of the housing and larger economic crisis. An estimated 3.6 million parents (not all of them elderly) live with their adult children, according to 2007 census data, up from 2.3 million in 2000, an increase of 57%. In those households, the number of parents 65 and older was up 62%.

Others are turning to reverse mortgages, loans available for seniors 62 and older that allow them to get cash based on the value of their home with no monthly mortgage payments. Such a loan is repaid out of proceeds from the eventual sale of the home or from the borrower’s estate after his or her death…”

More at MSN money.

Gold: Who’s Got It; Who Hasn’t

The US has 8,135 tonnes….64.4% of reserves

Germany — 3,412… …64.4% of reserves
IMF — 3,217… … …(1)
France — 2,508… … …58.7%
Italy — 2,451… … …61.9%
Switzerland — 1,040… …23.8%
Japan — 765.2… …1.9% …(a potential gold-buyer)
China — 600.0… …0.9% …(should be a big buyer)
Russia — 495. 9… …2.2% …(is a buyer)
Taiwan — 422.2… …3.6% …(should be a buyer)
India — 357.7… …3.0% …(should be a buyer)
UK — 310.3… … …14.5% …(sold most of its gold at the low price)
Saudi Arabia — 143.0… …11.4% (should buy gold)
South Africa — 124.4… …9.0%
Australia — 79.8… … …6.3%

From Richard Russell, The Dow Theory Letters.

So there you have it. Among countries, Italy, France, Germany, and the US have the most gold. Switzerland has a third of what they have.

The UK, South Africa, Australia, and Saudi Arabia are next with about  1/5th – 1/10th as much.

Russia and Japan have only a small percent in gold.

China and India have even less.

What do  most Asians have?

Debt (treasuries and dollars) from the US.

Neo-colonialism anyone?

American Food Crisis Or Sustainable Farming?

“The proposals we’re discussing would increase employment opportunities in agriculture — sustainable farming will require more “eyes per acre,” and replacing fossil-fuel energy with human energy and ecological knowledge makes good economic sense. With the reduced need for the hoe or plow, and land management relying more on fire and grazing, we draw on the naturalist instinct in nearly all of us, rather than presenting farm work as nothing but the “sweat of the brow” amid “thistles and thorns.” This will be necessary to counter the longstanding denigration of the countryside and rural communities, which has been a feature of our so-called cosmopolitan culture.We’re seeing that on a small scale now, with more young farmers staying on the land, with creative new endeavors in community-supported agriculture. People recognize that life is more than working in a small cubicle and consuming in a big-box store. People are hungry for good food, and they’re also hungry for a good life. People are ready to explore what it would mean to come home, not to a romanticized vision of the past but to a sustainable future….”

Robert Jensen, “Is America on the Brink of a Food Crisis?” at Alternet

Another New Deal?

“In most discussions of the Great Depression, the macroeconomic profile of the subject is portrayed as follows: steep continuous decline from
1929 to 1933, sharp recovery from 1933 to 1937, severe but short “depression” from 1937 to 1938, and renewed rapid recovery from
1938 onward, with the economy having fully recovered by 1940 or, at latest, 1941. With regard to hours worked, the profile looks somewhat different.
Total hours worked fell substantially from 1929 to 1932. Then, unlike the standard depiction of the economy’s course, they hit bottom and stayed put in a virtually flat-bottomed trough for three years, 1932, 1933, and 1934. They then rose substantially until 1937, dropped by 7 percent in 1938, then rose again thereafter. However, even as late as 1940, total hours remained below the 1929 level by 6 percent, and only in 1941, with the population vigorously engaged in mobilization for war, did total hours exceed the 1929 value, by 3 percent. Meanwhile, of course, the population and the potential labor force had grown substantially, the former by 11.6 million persons, so simply getting back to the 1929 level of hours worked represented something less than a complete triumph.

As the table shows, military employment remained quite low and did not vary substantially from 1929 to 1939. Similarly, farm hours worked varied little, although after remaining fairly steady from 1929 to 1933, they dropped in 1934 and never regained their previous level. This abrupt one-shot drop to a lower level probably represents the effects of the New Deal’s agricultural relief programs, some of which created incentives for farmers to reduce the amount of labor, especially sharecroppers’ labor, they used in their operations. [Update: Note comment below challenging this interpretation and attributing drop in farm hours worked in 1934 to the exodus]

(Whatley 1983).

Because neither military nor farm hours varied much between 1929 and 1939, the changes in total hours worked in that period are attributable
almost entirely to changes in civilian government hours and private nonfarm hours…”

Robert Higgs in Libertarian Papers, Volume I, A Revealing Window On the US Economy In Depression and War: Hours Worked, 1929-1950

Sometimes, It’s NOT the Economy…..

 “Obama in talking about the Middle East–the Palestine question and beyond–suffers from an acute case of “economism” or economic reductionism. He has the tendency to reduce all Arab and Muslim issues to job and medical care. It is NOT only the economy–stupid. It is also about pride and dignity and Palestine AND about freedom from the severe oppression that people suffer under governments that are coddled and armed by the very same US of A. So the words fall hollow here….”

From the Angry Arab

Global Games: Great Apes’ Lives Threatened By Palm Oil Production

“Hoping to unravel the mysteries of human origin, anthropologist Louis Leakey sent three young women to Africa and Asia to study our closest relatives: It was chimpanzees for Jane Goodall, mountain gorillas for Dian Fossey and the elusive, solitary orangutans for Birute Mary Galdikas.

Nearly four decades later, 62-year-old Galdikas, the least famous of his “angels,” is the only one still at it. And the red apes she studies in Indonesia are on the verge of extinction because forests are being clear-cut and burned to make”There are only an estimated 50,000 to 60,000 orangutans left in the wild, 90 percent of them in Indonesia, said Serge Wich, a scientist at the Great Ape Trust of Iowa. Most live in small, scattered populations that cannot take the onslaught on the forests much longer.

Trees are being cut at a rate of 300 football fields every hour. And massive land-clearing fires have turned the country into one of the top emitters of carbon.

Tanjung Puting, which has 1,600 square miles, clings precariously to the southern tip of Borneo island. Its 6,000 orangutans — one of the two largest populations on the planet, together with the nearby Sebangau National Park — are less vulnerable to diseases and fires.

That has allowed them, to a degree, to live and evolve as they have for millions of years……..”I am not an alarmist,” says Galdikas, speaking calmly but deliberately, her brow slightly furrowed. “But I would say, if nothing is done, orangutan populations outside of national parks have less than 10 years left.”

More from  from AP here.

Comments:

Having often had to face families of aggressive, prowling monkeys on the way home from school, I’m firmly on the side of man when he goes mano a chimpo for survival. But there’s no reason to despoil the sacred heritage of nature when survival is not the issue. Land usage – part of the commons – is something that can be subject to government intervention, in my opinion.

I know this sounds anti-libertarian. It isn’t really, because dogmatic libertarianism in these areas ends up destroying its own foundation.

When land is ravaged by massive unrestricted development and speculation-driven usage (think of the vast over-cultivation of soy in Argentina that’s led to the depletion of its soil), that has to encroach on the liberty…indeed survival… of everyone on the planet.

Again, the problem is size. Libertarianism simply doesn’t work for a one-world society.

The answer to that is not to go collectivist. It’s to get rid of the idea of  a  one-world society. We want as many worlds as possible.

The socialists like to say, a different world is possible.

I like to say, a different world is impossible.

Because there’s no such thing as a world. Once you start thinking of a world you want to change, you’ll end up with the same problems  – only somewhere else.

Wall Street Powerhouses Invested Alongside Madoff

“Primex Trading’s Dark Pool Operations

There has been much debate among Wall Street veterans as to why major European investment banks suffered serious damage from the Bernard Madoff Ponzi scheme while our biggest U.S. investment banks escaped unscathed.

For the past two decades, Wall Street watchers could count on four U.S. firms to land in the middle of every securities scandal. From Nasdaq price fixing to fake research to rigging the IPO markets to peddling toxic subprime assets, one could rest assured that Citigroup’s Smith Barney, Morgan Stanley, Merrill Lynch and Goldman Sachs would be heading the lineup. Their complete absence from the greatest Ponzi scheme in history raises the question: what did they know and when did they know it?

The answer may reside in a pentagonal structure created in 1999 to serve the interests of a Wall Street cartel.

On September 14, 1999, it was officially announced that Citigroup’s Smith Barney, Morgan Stanley, Merrill Lynch and Goldman Sachs had partnered with Bernard Madoff to compete head on with the New York Stock Exchange in a venture called Primex Trading.

Madoff had bought the rights to a new technology called Financial Auction Network (FAN) created by Christopher Keith, a 17-year veteran of technology creation at the New York Stock Exchange (NYSE). Mr. Keith had retired from the NYSE and started a technology think tank in lower Manhattan in the early 1990s called Exchange Lab. FAN was one of the early technology offerings and the rights to develop it were bought by Madoff. The firm that emerged was Primex Trading, a division of Primex Holdings. (Primex Holdings holds two patents and may be part of those secret Madoff assets the court won’t release to the public.)

In addition to harnessing the brains of Mr. Keith from the New York Stock Exchange, Primex hired Glen Shipway, the Executive Vice President of the over the counter stock market, Nasdaq, whose duties had included market surveillance of broker dealers like this gang of five.

The partners made a big splash in the press at the time, extolling altruistic intentions of getting better prices for their customers in an electronic version of the New York Stock Exchange. Here’s an excerpt from the New York Times on September 19, 1999:

“Primex is aiming to be an electronic version of the New York Stock Exchange. Participants will not only be able to buy and sell stocks at prevailing market prices, as they now do through many traditional and electronic exchanges, but also interact openly with one another — in effect, bargain — to find the best prices possible. ‘I think the fact four of the world’s largest securities firms have backed this system suggests that it brings something new and unique to our ability to obtain the best execution for our customers,’ said Bill Hart, a managing director in equity trading at Salomon Smith Barney.”

In reality, a very different motive was at work. One of the best kept secrets from the public is a benign sounding process on Wall Street called internalization. That’s where broker dealers like Madoff’s Primex partners match their customers’ buy and sell orders in-house rather than sending them off to the New York Stock Exchange or some other transparent stock exchange. The entities that engage in this trading process are called dark pools. (Recall that “pools” were the same secretive creatures that rigged the stock market leading up to the crash of 1929.)

While the investing public was being served up visions of Primex creating a more transparent and fairer pricing market mechanism, the goal for Madoff’s partners was to legitimize the highly questionable trading practice of internalization….”

— Pam Martens at Counterpunch.

Activism: Fight Land Cancer With Exnora

From my friend Nirmal Basu, the guiding spirit of the remarkable community environmental group, Exnora, comes a call to battle what he calls Land Cancer. Land Cancer is nothing more than the degradation and diminution of fertile land as pollution and intensive cash farming damage it and large corporations buy it up in huge tracts that they convert into housing developments.  Basu has a simple but tremendously effective program for individual and community response – practice Exnora. By this he means do the simple things you can do in your own backyard, house, or even flat to green your environment.

There’s an immediate reason why you should.  Food prices are set to mount seriously over the next years.

Some of his ideas:

Compost at home to make soil fertile

Use waste water in your garden

Grow a garden on your window sill…or on your terrace…..on a parapet..or on a gate

or even a water pipe

More ideas here at this Home Exnora flyer

and at the Exnora website.

I should quality this post: if things continue in the same line as they have so far, food prices are set to go up. As usual, we tend to project things in a linear fashion from our current perception of the past (itself inaccurate). It’s a form of modeling especially unsuited to predictions about large, complex groups – and there are very few things larger and more complex than the global economy – if you can even talk of it as a single entity. But that said, even if some technological advance or improvement in distribution or networking leads to lower food prices in the future- we’ll still have a greener environment, fresher air, and a more restful living space. All good things.

And no government money involved.

I came across something similar here in the US that was started by a retired engineer – Square Foot Gardening.

I plan to try my hand at it since I spend a lot of time in front of my computer. A nice box of basil, coriander, and mint on the desk makes an office decor I can live with.

S. Korean Blogger Arrested For Spreading Economic False Information

“SEOUL, South Korea – A South Korean blogger pleaded not guilty Saturday to charges that he spread false economic information on the Internet, a news report said, in a case that drew heated debate over freedom of speech.

The blogger, identified only by his surname Park, gained prominence among South Koreans because some of his dire predictions about the global economy, including the collapse of Lehman Brothers, later proved to be correct.

Known widely by his pen name “Minerva,” the mythological Greek goddess of wisdom, the 31-year-old Park was accused of spreading false information on an Internet discussion site last month that the government had ordered major financial institutions and trade businesses not to purchase U.S. dollars.

Kim Yong-sang, a judge at the Seoul Central District Court who issued an arrest warrant for Park following Saturday’s court hearing, said the case “affected foreign exchange markets and the nation’s credibility,” Yonhap news agency reported.

Park told the judge he wrote articles to help underprivileged people and did not seek any personal financial gain or harm the public interest, Yonhap said….”

More at AP.

Dollar Collapse In Two Years?

Writing on his blog , Prof Buiter said: “There will, before long (my best guess is between two and five years from now) be a global dumping of US dollar assets, including US government assets. Old habits die hard. The US dollar and US Treasury bills and bonds are still viewed as a safe haven by many. But learning takes place.”

He said that the dollar had been kept elevated in recent years by what some called “dark matter” or “American alpha” – an assumption that the US could earn more on its overseas investments than foreign investors could make on their American assets. However, this notion had been gradually dismantled in recent years, before being dealt a fatal blow by the current financial crisis, he said.

“The past eight years of imperial overstretch, hubris and domestic and international abuse of power on the part of the Bush administration has left the US materially weakened financially, economically, politically and morally,” he said. “Even the most hard-nosed, Guantanamo Bay-indifferent potential foreign investor in the US must recognise that its financial system has collapsed.”

More at the Telegraph.