Tag Archives | Economics

Sonia Gandhi’s “Occult” Economics

Picture: Ricardo Stuckert (CC)

Surjit S. Bhalla writes at the India Express:

As we all know, an economic disaster has struck India for the last three years. A halving of GDP growth, a doubling of inflation rates, a 20 per cent depreciation of the rupee, and record current account deficits (latest, 6.7 per cent of GDP) are reflective of the deep rot the Indian economy is in.

The economy numbers are exceptionally bad and worse than most other countries. What, or who, is responsible for making the impossible possible? For sure, it is the Congress-led UPA government. But who within the Congress party? On economic issues, most fingers will point towards the prime minister, Manmohan Singh, an economist of international repute, and joint father of the economic reforms introduced under the leadership of non-Nehru-Gandhi Congressman Narasimha Rao in 1991. But this would be wrong.

For too long we have been made to believe that, within the UPA, the political decisions were made by Sonia and the economic decisions by Singh.

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Bitcoin Currency Tops $1 Billion In Total Value

Are we living in a video game? Quartz writes:

Digital currency bitcoin continues its remarkable and somewhat inexplicable run. It’s up 152% this month, and today the total value of all outstanding bitcoins topped $1 billion for the first time before settling back down.

That’s quite a milestone, considering bitcoin isn’t backed by any real asset or faith in any government. What makes bitcoin so maddening to explain—no, there’s no central bank; yes, it really is just a bunch of people creating money out of thin air—is precisely what makes it so powerful.

The estimated margin on “mining,” or creating, new bitcoins has already recovered from December, when the rate at which new bitcoins could be minted was cut in half, part of the currency’s intentionally deflationary design. Anyone, from hobbyists to bankers to thieves, can mine bitcoins, which requires raw computing power dedicated to solving cryptographic puzzles.

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Anti-Austerity March Hoped To Be The Biggest Protest In U.K. History

Organizers of the largest protest in history to this point, the 2003 march against the invasion of Iraq, are among those hopping to orchestrate a watershed moment for the global movement against austerity, writes the Independent:

The new “People’s Assembly Against Austerity” will march through London on 22 June, and, with the help of the Stop The War Coalition, intends to break that group’s record for the largest public rally in the nation’s history. The group claims it will be “an alternative democratic forum to a Parliament that has failed the people it is supposed to represent.” It will be, they hope “the launch-pad for mass resistance to austerity”.

Green Party Member of Parliament Caroline Lucas, Labour’s Katy Clark, Director of Executive Policy at the Unite trade union Steve Turner, head of the National Union of Teachers Kevin Courtney, comedian and disabled activist Francesca Martinez, as well as Independent columnists Owen Jones and Mark Steel, are the figureheads of a group they hope will appeal to anyone against austerity, regardless of background.

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Three Game Changers: Standard Chartered admits fraud, Cyprus, and BRICS Nations discuss proposal to challenge World Bank and IMF

via chycho

The changes that are taking place on the global political landscape are unprecedented. Our recent economic crisis has allowed us to lift the veil on financial institutions revealing their vile business practices that have allowed them to control our governments.

Below you will find three recent significant events that are acting as catalysts to accelerate the inevitable restructuring of the way we do business:

1) Sending a Message for Backpedaling on Settlements: “Earlier this year, John Peace, the chairman of Standard Chartered’s board, spoke at a news conference announcing the bank’s quarterly earnings. He was asked whether any employees would be held responsible for violations of United States laws restricting financial dealings with Iran and other countries that led to settlements with federal and state authorities costing the bank about $667 million. He responded, ‘We had no willful act to avoid sanctions; you know, mistakes are made — clerical errors — and we talked about last year a number of transactions which clearly were clerical errors or mistakes that were made.’

“There is just one big problem with attributing violations to mere ‘clerical errors.’ The deferred prosecution agreement with the Justice Department specifically provides that no one at Standard Chartered can make ‘any public statement contradicting the acceptance of responsibility’ in the settlement.… Read the rest

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Wall Street Exploring Ways To Profit From Global Warming

Turning lemons into really pricy lemonade. Bloomberg on the investment companies banking on massive windfalls as the planet heats:

Investing in climate change used to mean putting money into efforts to stop global warming. Now some investors are taking another approach. Working under the assumption that climate change is inevitable, they’re investing in businesses that will profit as the planet gets hotter.

Derivatives that help companies hedge against abnormal weather and natural catastrophes are drawing increased interest from big players. In January, KKR bought a 25 percent stake in Nephila Capital, an $8 billion Bermuda hedge fund that trades in weather derivatives.

Drought is helping spur business at Water Asset Management. The New York hedge fund, which has about $400 million under management, buys water rights and makes private equity and stock market investments in water treatment companies.

Ole Christiansen is also investing to take advantage of rising temperatures. “Last summer we were exploring in south Greenland, mainly for gold,” says the chief executive officer of NunaMinerals (NUNA), a local mining company.

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Malls for the ‘Sheeple’

Into Boksburg and ERMDurban, South Africa: Back in 2002, South Africa hosted a UN environmental Summit on sustainability. It drew a rag tag army of green activists from all over the world, many excited to visit the now free South Africa that they fought for through the apartheid years, and hoping to meet members of the liberation movement led by Nelson Mandela

The closest to Nelson Mandela they got was to gather in front of a giant statue, created by a Swedish artist, in a commercial Square named after the South African icon. When they pictured the new South Africa, they probably saw the townships where tens of thousands of people marched for justice.

Instead, they found themselves in Sandton, a “township” that only capitalists could imagine, an upscale enclave within the city of Johannesburg devoted to corporation, banks and giant malls even more opulent than similar temples of consumption in other countries.… Read the rest

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World’s 100 Richest Could End Global Poverty Four Times Over

World’s 100 richest could end global poverty 4 times over

“The richest 1 percent has increased its income by 60 percent in the last 20 years with the financial crisis accelerating rather than slowing the process,” while the income of the top 0.01 percent has seen even greater growth, a new Oxfam report said.

What sense does wealth have in the long run, if we think of ourselves as a species in an enormous cosmos, rather than Americans and Saudi Arabians, or rich and poor?
Crazy talk, for sure. ”Us” and “them.” If we don’t recognize ourselves as brothers and sisters, we’re going to be done for. Nature is far more brutal and unstable on the long run than this little calm blip in history would make us think.

There are not yet obvious signs of extraterrestrial intelligence, and this makes us wonder whether civilizations like ours rush inevitably into self-destruction.

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May I Recommend a Documentary: ‘The Wobblies’

via chycho

If you want to hear some of the coolest stories that you’ve ever heard from some of the funniest elders that you’ve ever seen then “The Wobblies” is for you. There is so much goodness in this documentary that it’ll put a smile on your face.

The subject matter is the IWW, the Industrial Workers of the World, formed in 1905, it’s considered to be one of the most important labor movements in the history of the United States…

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The Movement To Mint A Trillion Dollar Coin

Have you heard about the Trillion Dollar Coin? No joke, there’s serious talk in Washington about minting one. Joe Weisenthal explains at Business Insider:

There are really two stunning things about the movement to mint a trillion dollar coin to avert a debt ceiling crisis.

FIRST: the movement has gone absolutely nuts.

Everyone is talking about it.

Media outlets and individuals include: BBCFox NewsCNNPIMCO’s Bill GrossPaul KrugmanReutersThe GuardianWall Street JournalThe EconomistBloombergMSNBCCNBCNBCCBSABCThe AustralianRia Novosti (Russia), Stephen ColbertThe Washington Post. That’s just a partial list.

SECOND: Despite the supposed absurdity of it, and despite the fact that it flies in the face of everything everyone thinks about money, there are virtually no good arguments against it.

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The Middle Class Has Been Saved – Or Has It?

Long live the middle class now that it has survived the fiscal cliff and been “saved.”

President Obama is basking in the glory of having averted the deepening of a crisis that is more structural than political and hardly resolved.

The markets are cheering, it is said, because markets love stability, unless there is money to be made off of volatility of their own making.

Forget the working class. The term is passé, as is the so-called and usually undefined great mushy middle class moves into its rightful place at the center of everyone’s concerns.

(When asked what class they are in—or aspire to be in—workers, and even the poor say Middle Class. Unless survey questions include the choice of working class that they usually don’t.)

Analysts who looked closely at the big deal so hysterically pushed through Congress as the dramatic end-piece of a year of political warfare, say that there will be very little gain for the middle class with income taxes down but payroll taxes up, insuring that it will be more, at best, of a wash than a redistribution of wealth on any level. Many Americans, not just the rich, will be shelling out more, not less.

Economist Lambert Strether calls it the “fecal cliff,” noting, “cuts and tax increases (especially on the rich) are not commensurate. A “sacrifice” where some give up luxuries and others give up necessities is in no way “shared. A marginal sacrifice for the rich is not commensurate to core sacrifices for the rest…

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