Archive for 2009

Swine flu pandemic declared

Thursday, June 11th, 2009

LATEST The World Health Organisation has told its member nations it is declaring a swine flu pandemic – the first global flu pandemic in 41 years.

In a statement sent to member countries, WHO said it decided to raise the pandemic alert level from phase 5 to 6, meaning that a global outbreak of swine flu has begun.

The decision was made after the UN health agency held an emergency meeting on swine flu with its experts.

Countries were preparing for tighter swine flu controls as some nations said they had received advance notice of the declaration from the WHO.

Moving to phase 6, the highest level, means a pandemic has begun. It triggers drugmakers to speed up production of a swine flu vaccine and prompt governments to devote more money to containing the virus.

The last pandemic – the Hong Kong flu of 1968 – killed about 1 million people. Ordinary flu kills about 250,000 to 500,000 people each year.

On Wednesday, the WHO reported that the virus has infected at least 27,737 people in 74 countries and caused 141 deaths. Most cases have been in North America, but Europe and Australia have seen a sharp increase in recent days.

Four patients with swine flu were fighting for their lives in Melbourne hospitals, while Thailand’s Public Health Ministry said the country’s case load had nearly tripled to 46, including 17 infected at a disco in the resort town of Pattaya.

Earlier there had been speculation that a  jump in infections in Australia could push WHO to finally announce a pandemic. Australia’s cases reached 1275 by late Wednesday.

More…

My motorcycle is running

Wednesday, June 10th, 2009
Me and my ride!

Me and my ride!

Now, I know it doesn’t compare to the end of civilization as we know it and the other sorts of fare we normally serve here – but, hey, I’ve got a personal life too, ya know?

So, today I got my Honda CB700SC running again after it’s been down for several weeks and I’ve been missing out on some fantastic riding weather. So this, my friends, is something to celebrate.

You know, the world may, indeed, be going to hell in a hand basket, but I, for one, intend to look it square in the eye *and* to enjoy the time I have.

Cheers all!

For 300 years Britain has outsourced mayhem. Finally it’s coming home

Wednesday, June 10th, 2009

– I’ve long thought that Britain has had a lot to own up to that it has largely been in denial of.   Things like selling salt from the sea to the Indians during Gandhi’s years of protest. Not that the U.S., with its Monroe Doctrine and its manipulation of Latin American events for its own benefit, hasn’t much of the same history and denial.   But Monbiot (one of my favorites authors) surely nails the paper to the church door here.   I think the average U.S. and British citizen, living blissfully within the cocoons of wealth created by these rapacious adventures, has very little idea how much of their comfort came at what cost to others.

– But, irony abounds.   Those who were disadvantaged by these manipulations; China with the Opium, Chile with the Copper and etc., are quick to point at their wounds and moralize.   But, inevitably, as the winds of history shift, they will come into ascendance and practice all the same self-aggrandizements at the expense of the weaker.  Indeed, I find myself wondering frequently what sort of a world-master China is going to make - given the current trends.

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Opium, famine and banks all played their part in this country’s plundering of the globe. Now it’s over, we find it hard to accept

Why now? It’s not as if this is the first time Britain’s representatives have been caught out. The history of governments in all countries is the history of scandal, as those who rise to the top are generally the most ambitious, ruthless and unscrupulous people politics can produce. Pushing their own interests to the limit, they teeter perennially on the brink of disgrace, except when they fly clean over the edge. So why does the current ballyhoo threaten to destroy not only the government but also our antediluvian political system?

The past 15 years have produced the cash-for-questions racket, the Hinduja and Ecclestone affairs, the lies and fabrications that led to the invasion of Iraq, the forced abandonment of the BAE corruption probe, the cash-for-honours caper and the cash-for-amendments scandal. By comparison to the outright subversion of the functions of government in some of these cases, the is small beer. Any one of them should have prompted the sweeping political reforms we are now debating. But they didn’t.

The expenses scandal, by contrast, could kill the Labour party. It might also force politicians of all parties to address our unjust voting system, the unelected Lords, the excessive power of the executive, the legalised blackmail used by the whips, and a score of further anachronisms and injustices. Why is it different?

I believe that the current political crisis has little to do with the expenses scandal, still less with Gordon Brown’s leadership. It arises because our economic system can no longer extract wealth from other nations. For the past 300 years, the revolutions and reforms experienced by almost all other developed countries have been averted in Britain by foreign remittances.

The social unrest that might have transformed our politics was instead outsourced to our colonies and unwilling trading partners. The rebellions in Ireland, India, China, the Caribbean, Egypt, South Africa, Malaya, Kenya, Iran and other places we subjugated were the price of political peace in Britain. After decolonisation, our plunder of other nations was sustained by the banks. Now, for the first time in three centuries, they can no longer deliver, and we must at last confront our problems.

There will probably never be a full account of the robbery this country organised, but there are a few snapshots. In his book Capitalism and Colonial Production, Hamza Alavi estimates that the resource flow from India to Britain between 1793 and 1803 was in the order of £2m a year, the equivalent of many billions today. The economic drain from India, he notes, “has not only been a major factor in India’s impoverishment … it has also been a very significant factor in the industrial revolution in Britain”. As Ralph Davis observes in The Industrial Revolution and British Overseas Trade, from the 1760s onwards India’s wealth “bought the national debt back from the Dutch and others … leaving Britain nearly free from overseas indebtedness when it came to face the great French wars from 1793”.

More, much more…

– Research thanks to Robin S.

Europe swings Right as depression deepens

Wednesday, June 10th, 2009

– The economic situation is beginning to exert powerful effects on the political landscape.  Witness this analysis of current events in Europe.

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The establisment Left had been crushed across most of Europe, just as it was in the early 1930s.

We have seen the ultimate crisis of capitalism — what Marxist-historian Eric Hobsbawm calls the “dramatic equivalent of the collapse of the Soviet Union” — yet socialists have completely failed to reap any gain from the seeming vindication of their views.

It is not clear why a chunk of the blue-collar working base has swung almost overnight from Left to Right, but clearly we are seeing the delayed detonation of two political time-bombs: rising unemployment and the growth of immigrant enclaves that resist assimilation.

Note that Right-wing incumbents in France (Sarkozy) and Italy (Berlusconi), survived the European elections unscathed.

Left-wing incumbents in Germany, Austria, the Netherlands, Spain, Portugal, Hungary, Poland, Denmark, and of course Britain were either slaughtered, or badly mauled.

The Dutch Labour party that has dominated national politics for the last half century fell behind the anti-immigrant movement of Geert Wilders (banned from entering Britain). It serves them right for the staggeringly stupid decision to force through the European Constitution (renamed Lisbon) after it had already been rejected by their own voters by a fat margin in the 2005 referendum.

The Portuguese Socialists face Siberian exile after seeing a 18pc drop in their vote. The slow drip-drip of debt-deflation for a boom-bust Club Med state, trapped in the eurozone with an overvalued exchange rate (viz core Europe, and the world), has suddenly turned into a torrent. The country is already in deflation (-0.6pc in April). It has been suffering its own version of Japanese perma-slump for half a decade.

Portugal’s opposition is calling for an immediate vote of no censure, while the Government clings to constitutional fig-leaves to hide its naked legitimacy. “O Governo está na sua plenitude de funções,” said the chief spokesman. You can guess what that means. Not long for this world, surely.

In Germany and Austria, the Social Democrats suffered their worst defeats since World War Two. I don’t say that with pleasure. A vibrant labour-SPD movement is vital for German political stability. It was the peeling away of Socialist support during the Bruning deflation of the Depression years — so like today’s Weber-Trichet deflation — that led to the catastrophic election of July 1932, when the Nazis and Communists took half the Reichstag seats.

More…

– Research thanks to Robin S.

North Korea would use nuclear weapons in a ‘merciless offensive’

Tuesday, June 9th, 2009

– Ever wondered why the world lets North Korea boast and swagger like they do?

– They starve their own people and worship their ‘great leaders’ like they are gods.    They test fire missiles right over Japan and they develop nuclear weapons right in front of us with an ‘in your face‘ attitude.

– The why has to do with the size of their standing army (700,000 within 90 miles of the South Korean border) … and with the physical location of Seoul, the capital of South Korea.

The layout of the Koreas

The layout of the Koreas

Check the map:

– Seoul is within the range of vast arrays of North Korean artillery and it is far too close to the border to save it if the North Koreans swarmed across en masse.

– In short, for those who oppose North Korea’s insanity, the cards are very badly dealt.   Yes, we could do a full body slam on them and take them down once and for all, but it would inevitably cost us the capital city of a major ally.   NOT a good choice.

– So, we talk to the North Koreans and try to reason with them and we hope that their semi-insane leadership will simply die of stupidity or something soon so saner minds can take over.   We dicker with Russia and China, who love to play the ‘people’s devil’s advocates‘ in such situations – so long as their bacon’s not in the fire.

– And then, China has an additional problem with North Korea that we don’t hear much about here in the west.   And that is unwanted immigration.   The North Korean / Chinese border isn’t much more effective than the U.S. / Mexico border.   And North Korea has a lot of desperate starving people who want to get to the ever so much more affluent China  and the Chinese have a lot on their hand now just dealing with those coming across.   Without the cooperation and good-will of the North Korean authorities, they’d have a lot bigger problem – and they don’t need that.

– So, we cannot act against North Korea without hurting ourselves badly and yet they just cannot be allowed to go on like they are.   It’s that fatal embrace business again.

– If you doubt what I’m saying here, then just read the following article:

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North Korea today said it would use nuclear weapons in a “merciless offensive” if provoked — its latest bellicose rhetoric apparently aimed at deterring any international punishment for its recent atomic test blast.

The tensions emanating from Pyongyang are beginning to hit nascent business ties with the South: a Seoul-based fur manufacturer became the first South Korean company to announce Monday it was pulling out of an industrial complex in the North’s border town of Kaesong.

The complex, which opened in 2004, is a key symbol of rapprochement between the two Koreas but the goodwill is evaporating quickly in the wake of North Korea’s nuclear test on May 25 and subsequent missile tests.

Pyongyang raised tensions a notch by reviving its rhetoric in a commentary in the state-run Minju Joson newspaper today.

“Our nuclear deterrent will be a strong defensive means…as well as a merciless offensive means to deal a just retaliatory strike to those who touch the country’s dignity and sovereignty even a bit,” said the commentary, carried by the official Korean Central News Agency.

It appeared to be the first time that North Korea referred to its nuclear arsenal as “offensive” in nature. Pyongyang has long claimed that its nuclear weapons program is a deterrent and only for self-defense against what it calls US attempts to invade it.

More…

– Research thanks to Charles P.

Health Care Insurance in the United States

Sunday, June 7th, 2009

We just got our new healthcare costs for next year.   An 11.3% increase.   This means that out monthly healthcare costs will jump from $885.98/mo ($10,631.76/yr) to $986.40/mo ($11,836.80/yr).   That’s $1205.04 more per year.

And this is the cheapest insurance our provider offers.  We each pay a $2,500 deductable before we see any benefits coming back to us.

Am I deeply disgusted?   You bet.   I’m not going to get 11.3% more services for the extra money I’ll pay – just the same services as before.

I really wonder what is making healthcare costs rise so strongly here in the US if I’m not getting more services?

One thing I’d be willing to bet on:  The health insurer companies are not in danger of going under.  If their costs rise, they just pass it on to those who buy their policies.

Things are unraveling in this country day by day.   And those corporate interests who have captured our pharmaceutical and medical systems stand above the fray and continue to milk us for their profits.

Have you ever asked yourself why an operation that costs $30,000 in the US costs $6000 in India?   Oh, you say, “It’s because the quality of the medical care in there is sub-standard?”   Not so.   It is equivalent.   Read this: or this .   And if you are still curious, Google for “medical costs in India” or “Medical costs in Thailand” for more.   It’ll be an eye-opener.

New Zealand and its socialized medical system is looking better and better to me everday.

Green Shoots, Red Ink, Black Hole

Saturday, June 6th, 2009

– This article says what I’ve been saying for some time.   And, it’s got a lot of good data to support its points.  U.S. and multinational corporations in their obsessive quests for maximum profits have gutted this country’s ability to be a net wealth generator.  And now we’re locked into a fatal embrace with China in which we have to borrow ever more to maintain the facade that we’re solvent and they have to keep loaning it to us least our failure compromises what they’ve already lent us.   Now, who in their right mind thinks that can go on forever?  Nice eh?

– Give this article a good read all the way through – if you care about knowing which way the wind’s blowing – and about your future.

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Truly terrifying data about the real state of the U.S. economy.

By Eliot Spitzer

I have an unfortunate sense that the “green shoots” in the economy that everyone is talking about are nothing but dandelions. Sure, forcing $1 trillion of taxpayer money—in direct capital, guarantees, and diminished cost of borrowing—into the banking sector has permitted the major banks to claim solvency for the moment. Yet we should not forget that this solvency has come not through a much needed deleveraging of the banking sector but rather from a massive transfer of the obligations of private banks to the public, with the debt accruing to future generations. And overall loan quality at U.S. banks is still the worst in 25 years and deteriorating at the fastest pace ever.

It’s a terrible mistake to confuse the momentary solvency of the financial sector and the long-term health of our economy.

While we have addressed the credit collapse, we have not begun to tackle the far more daunting, and more significant, structural problems in the economy. Instead of focusing on the green shoots, let’s examine the macro data that will determine our national prosperity in the next generation. These data are terrifying.

Start with the job front. Long term, nothing is more fundamental than good jobs to creating the middle-class wealth that must drive the economy. The creation of true middle-class jobs was the great success of our economy from 1950s through the mid-1990s. Consider the job data, in aggregate and by sector, from the past decade. (All data are from the U.S. Department of Labor, Bureau of Labor Statistics.)

Unemployment Rate by Industry
Year Unemployment rate Manufacturing Jobs
(in millions)
Serv. Jobs Gov’t. Jobs Total Jobs Population
1999 4.3 18.48 102.23 20.09 133 272
2004 5.6 14.3 108.64 21.5 138.38 292
2009 8.9 12.4 113.82 22.54 141.57 305

One-third of our manufacturing jobs have disappeared in a decade! And while population grew 12.1 percent over the decade, jobs grew by only 6.4 percent. The unemployment number, moreover, doesn’t count those who are “marginally attached to the labor force,” because even though they want to work and are available to do so, they have not sought a job in the past four weeks. In raw numbers, the total number of individuals counted as currently unemployed and those who are marginally attached is a staggering 15.8 million. That is an enormous mountain of job creation to climb.

More…

– Thanks to Rolf A. for research

China’s rare earth monopoly threatens global suppliers, rival producers claim

Friday, June 5th, 2009

– I’ve said it before; as resources get scarce, it is going to get to be like a vicious game of musical chairs and each time the music stops for something essential, someone is going to find them self without.

– You’d have to be living under a rock to not have realized that this sort of thing is already going on with respect to oil, land to grow food and water.   And the games for these have only just begun.

– There are other lesser know commodities that are going to become very scarce and thus very expensive.   I’ve been following Helium and Lithium for the last year or more in this respect. Perhaps I’ll write something on each of these soon.

– Now we hear that China has quietly been cornering most of the world’s supply of rare earth ore.

– The world is going to get to be a pretty small and tough place before too very many years go by.

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The Chinese acquisition of stakes in Australian rare earth miners Lynas Corporation and Arafura Resources has “caught the rest of the world sleeping,” said Rod McIllree, managing director at Australian-based Greenland Minerals & Energy (GME).

Following two acquisitions in the past six months for an aggregate USD 163m, Korean, Japanese and Western players may find themselves locked out of the sector, McIllree told mergermarket. Speculation is rife as to what this may mean for the high tech and green industries that rely on rare earth metal resources. With over 90% of the global rare earth resource held by Chinese companies, the country’s monopoly looks unchallenged. The recent Australian acquisitions have brought China control of the majority of the rare earth deposits outside China.

Rare Earth metals are a collection of 17 different metals that occur within the same ore deposits. While China currently produces 95% of the worlds rare earth supply, the metals are also found in the US, Indonesia, Australia and South Africa. Rare earth metals are needed for the manufacturing of wind turbines, plasma televisions, mobile phones, hybrid car batteries meaning the Chinese monopoly could shift the high-tech manufacturing industry bases from Japan and Korea to China.

Acquisitions of Australian rare earth miners are strongly backed by the Chinese Government, a China-based industrial banker said. Since 2004, or even earlier, the Chinese government has treated rare earth resources as strategic. In order to protect the resources available to China, the government employs a three-pronged strategy; rare earth exports are restricted, imports encouraged, and outbound rare earth acquisitions actively encouraged.

More…

– Hat tip to Cryptogon for making me aware of this story.

Are medical costs the leading cause of U.S. bankruptcies?

Friday, June 5th, 2009

– This story and the one before it both illustrate what is so very wrong with the fact that the U.S. is the only industrialized western nation without universal health care.   And why?  Because corporate interests have captured our system and they are not about to forego their immense profits for the benefit of mere people.

– Read this to see how it could be:

– And read these to see the ways things are going very very wrong: and

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At least 62 percent of all U.S. family bankruptcies result from medical expenses, reports a study released yesterday in The American Journal of Medicine—an increase from the 46 percent the reseachers found in 2001.

Analyzing data from 2,314 randomly selected 2007 (pre-mortgage-meltdown) bankruptcy filings revealed that most of those who had claimed bankruptcy because of medical expenses had health insurance, owned homes, were in their mid-40s and had middle class incomes.

High out-of-pocket expenses for those already insured and the loss of private insurance were the primary reasons for medical bankruptcy, report the study authors—many of whom are active members of Physicians for a National Health Program, a group that advocates for a single-payer system.

More…

Healthcare and Bankruptcy

Friday, June 5th, 2009

— By Kevin Drum | Wed June 3, 2009 11:03 PM PST

On the campaign trail, Barack Obama frequently cited research showing that medical expenses were a contributing factor in 55% of all personal bankruptcies.  A new study says he was wrong. It was actually more than that:

The study found that medical bills, plus related problems such as lost wages for the ill and their caregivers, contributed to 62% of all bankruptcies filed in 2007….Medical insurance isn’t much help, either. About 78% of bankruptcy filers burdened by healthcare expenses were insured, according to the survey, to be published in the August issue of the American Journal of Medicine.

….Most people who filed medical-related bankruptcies “were solidly middle class before financial disaster hit,” the study says. Two-thirds were homeowners, and most had gone to college.

The study does not suggest that medical expenses were the sole cause for these bankruptcies, but it does identify them as a contributing factor. The increase in such filings occurred despite a 2005 law aimed at making it more difficult for individuals to seek court protection from creditors.

Among bankruptcy filers, those without insurance reported average medical expenses of $26,971.  Those with private insurance reported average medical bills of $17,749.

More…