Secret Files Expose Offshore’s Global Impact

April 12th, 2013

– This story is going to have legs for a long time, folks.  High net worth individuals and politicos all over the globe must be crapping themselves wondering what’s going to come out of this story.

– All us small folk are paying higher and higher taxes while the disparity between the rich and poor grows wider and wider and the folks on the top are clearly not paying their share.  They are, in fact, working very hard to pay little or nothing.

– Corporations and the rich are gaming the situation to push the tax burdens down on the middle classes and that’s one of the reasons why the middle classes are beginning to look like an endangered species.

– This can only go so far and there will be a backlash.   This, if carried far enough, is the stuff revolutions are made of.

– dennis

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Dozens of journalists sifted through millions of leaked records and thousands of names to produce ICIJ’s investigation into offshore secrecy ­

A cache of 2.5 million files has cracked open the secrets of more than 120,000 offshore companies and trusts, exposing hidden dealings of politicians, con men and the mega-rich the world over.

The secret records obtained by the International Consortium of Investigative Journalists lay bare the names behind covert companies and private trusts in the British Virgin Islands, the Cook Islands and other offshore hideaways.

They include American doctors and dentists and middle-class Greek villagers as well as families and associates of long-time despots, Wall Street swindlers, Eastern European and Indonesian billionaires, Russian corporate executives, international arms dealers and a sham-director-fronted company that the European Union has labeled as a cog in Iran’s nuclear-development program.

The leaked files provide facts and figures — cash transfers, incorporation dates, links between companies and individuals — that illustrate how offshore financial secrecy has spread aggressively around the globe, allowing the wealthy and the well-connected to dodge taxes and fueling corruption and economic woes in rich and poor nations alike.

The records detail the offshore holdings of people and companies in more than 170 countries and territories.

The hoard of documents represents the biggest stockpile of inside information about the offshore system ever obtained by a media organization. The total size of the files, measured in gigabytes, is more than 160 times larger than the leak of U.S. State Department documents by Wikileaks in 2010.

– More… ➡

 – Later breaking stories on this subject… ➡

Ottawa weighing plans for bank failures

April 12th, 2013

– Cyprus and the government’s actions there to seize depositor funds to rescue a failing economy and its banks wasn’t a one-off.  

– This same plan is wending it way through the parliament here in New Zealand under the guidance of the conservative National Government.  And, just as in the article, below, about Canada’s movements in the direction, the New Zealand government is doing their very best to deflect any and all questions about whether or not money would or would not be taken from depositor accounts of a bank to cover the shortfalls if that bank failed.  

– No one in New Zealand has explained why the bank’s officers should not first be stripped of all their assets before anyone should think of going after the bank’s depositors.  

– And no one has explained why, if it is the government’s rightful roll to regulate banks to prevent such things, why the government should not be culpable and why, if they were, they should not spread the burden of their malfeasance across the entire tax-payer base of the country to more fairly spread the load.

– And finally no one has explained why of these three; the bank’s officers, the government and the bank’s depositors, why the depositors (who would would obviously know the least about the bank’s stability) should be the ones tasked with paying the penalty for a bank’s failure.

– Yes, God damn it, the people DO want to know the answers to these questions.

– dennis

Canadian Federal government looking at ‘Cyprus solution’

Buried deep in last month’s federal budget is an ambiguously worded section that has roiled parts of the financial world but has so far been largely ignored by the mainstream media.

It boils down to this: Ottawa is contemplating the possibility of a Canadian bank failure — and the same sort of pitiless prescription that was just imposed in Cyprus.

Meaning no bailout by taxpayers, but rather a “bail-in” that would force the bank’s creditors to absorb the staggering losses that such an event would inevitably entail.

If that sounds sobering, it should. While officials in Ottawa are playing down the possibility of a raid on the bank accounts of ordinary Canadians, they chose not to include that guarantee in the budget language.

Canadians tend to believe their banks are safer and more backstopped than elsewhere in the world. The federal government enthusiastically promotes the notion, and loves to take credit for it.

It may well be true, even if Canada’s six-bank oligopoly isn’t terribly competitive, at least in comparison to the far more diverse American banking universe.

But in the ever-more insecure world that has unfolded since the financial meltdown of 2008, it is also increasingly clear that nothing is safe anymore, not even blue-chip bank stocks and bonds or even, in the case of the Cyprus bail-in, private bank accounts.

And now, Canada is making a bail-in official government policy, too.

“The government proposes to implement a bail-in regime … designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability,” says Finance Minister Jim Flaherty’s March 21 budget, on page 144.

That would be done, the document says, through the rapid conversion of “certain bank liabilities.”

Ottawa’s budget document leaves the definition of “certain liabilities” to the reader’s imagination.

Bank deposits?

There has been very little public debate about the plan to date, but Finance Department officials and the banks protest it should never be taken to mean small personal deposits would be seized.

Deposits are insured by the Canadian Deposit Insurance Corporation, up to $100,000, and the inviolability of that insurance is key to maintaining the crucial public trust.

“The risk of the Canadian government not honouring its insurance on deposits is as close to zero as you can get,” says Craig Alexander, chief economist at TD Canada Trust.

Perhaps.

As the Cyprus meltdown proceeded, it became clear that Europe’s finance ministers and central banks, encouraged by the International Monetary Fund, were not only willing to freeze and seize uninsured deposits over 100,000 euros, they were also initially willing to cancel deposit insurance and go after small depositors, too.

In the end, the plan was rewritten, and insured deposits were protected. But the signal had been sent: The Europeans and the IMF had been prepared to do the unthinkable.

Holland’s finance minister then declared that bail-ins would be the template for all future bank rescues in Europe, and that he could not rule out seizure of deposits elsewhere.

– More… ➡

 

Personal – 13 Apr 2013

April 12th, 2013

– My partner, Colette, and I are wrapping up four months in Wellington, New Zealand, this weekend and preparing to spend two weeks touring New Zealand’s North Island by car before we travel across the Cook Strait via ferry to the South island and then by train back to Christchurch.

– I’ve really conceived a love for Wellington.  What a vibrant, beautiful and pleasant a city it is.  We’ve been over most of it on foot and by bus these four months.  We’ve sat in on Parliament’s question and answer sessions, visited endless coffee shops and restaurants, hosted a few friends with us, made use of the libraries, theaters, free concerts, talks and various cultural and ethnic street events.

– Another event that transpired during our time here was that Colette wrapped up 12 years with the New Zealand Ministry of Justice and is now a free agent.

– And yet another event was that it looks like I will finally be paid out for the apartment I lost in Christchurch in the February 2011 earthquake there.  And that money, when it arrives, will augment my income nicely and give me a bit more flexibility which is never a bad thing.

– While I’ve been here I’ve been digging into programming iPhone and iPad apps and I’ve come up to speed nicely.  In fact, just today, I bid my first job to write an app.

– That’s the news.

– Cheers from New Zealand, my friends,

-dennis

 

Can a collapse of global civilization be avoided?

April 7th, 2013

– Beware, if you click on any of the citations in the article, below, you will be taken to the original article.  That is, of course, fine.   Just making you aware of this fact before you click on one.

– dennis

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By Paul R. Ehrlich and Anne H. Ehrlich

Abstract

Environmental problems have contributed to numerous collapses of civilizations in the past. Now, for the first time, a global collapse appears likely. Overpopulation, overconsumption by the rich and poor choices of technologies are major drivers; dramatic cultural change provides the main hope of averting calamity.

1. Introduction

Virtually every past civilization has eventually undergone collapse, a loss of socio-political-economic complexity usually accompanied by a dramatic decline in population size [1]. Some, such as those of Egypt and China, have recovered from collapses at various stages; others, such as that of Easter Island or the Classic Maya, were apparently permanent [1,2]. All those previous collapses were local or regional; elsewhere, other societies and civilizations persisted unaffected. Sometimes, as in the Tigris and Euphrates valleys, new civilizations rose in succession. In many, if not most, cases, overexploitation of the environment was one proximate or an ultimate cause [3].

But today, for the first time, humanity’s global civilization—the worldwide, increasingly interconnected, highly technological society in which we all are to one degree or another, embedded—is threatened with collapse by an array of environmental problems. Humankind finds itself engaged in what Prince Charles described as ‘an act of suicide on a grand scale’ [4], facing what the UK’s Chief Scientific Advisor John Beddington called a ‘perfect storm’ of environmental problems [5]. The most serious of these problems show signs of rapidly escalating severity, especially climate disruption. But other elements could potentially also contribute to a collapse: an accelerating extinction of animal and plant populations and species, which could lead to a loss of ecosystem services essential for human survival; land degradation and land-use change; a pole-to-pole spread of toxic compounds; ocean acidification and eutrophication (dead zones); worsening of some aspects of the epidemiological environment (factors that make human populations susceptible to infectious diseases); depletion of increasingly scarce resources [6,7], including especially groundwater, which is being overexploited in many key agricultural areas [8]; and resource wars [9]. These are not separate problems; rather they interact in two gigantic complex adaptive systems: the biosphere system and the human socio-economic system. The negative manifestations of these interactions are often referred to as ‘the human predicament’ [10], and determining how to prevent it from generating a global collapse is perhaps the foremost challenge confronting humanity.

The human predicament is driven by overpopulation, overconsumption of natural resources and the use of unnecessarily environmentally damaging technologies and socio-economic-political arrangements to service Homo sapiens’ aggregate consumption [1117]. How far the human population size now is above the planet’s long-term carrying capacity is suggested (conservatively) by ecological footprint analysis [1820]. It shows that to support today’s population of seven billion sustainably (i.e. with business as usual, including current technologies and standards of living) would require roughly half an additional planet; to do so, if all citizens of Earth consumed resources at the US level would take four to five more Earths. Adding the projected 2.5 billion more people by 2050 would make the human assault on civilization’s life-support systems disproportionately worse, because almost everywhere people face systems with nonlinear responses [11,2123], in which environmental damage increases at a rate that becomes faster with each additional person. Of course, the claim is often made that humanity will expand Earth’s carrying capacity dramatically with technological innovation [24], but it is widely recognized that technologies can both add and subtract from carrying capacity. The plough evidently first expanded it and now appears to be reducing it [3]. Overall, careful analysis of the prospects does not provide much confidence that technology will save us [25] or that gross domestic product can be disengaged from resource use [26].

– More… ➡

 

Pentagon weapons-maker finds method for cheap, clean water

April 4th, 2013

– A-hem.  Yes, it will be very nice if this is true.  And I’d like to believe it is.  But….

– Well, you knew there was going to be a ‘but‘ didn’t you?

– On one hand, the conspiracy theorists (who generally are a bit light on their science education chops) are always telling us how it’s possible to run cars on water or to pull energy straight out of the air and that they know for a fact that a fellow named Bubba in Alabama or Colorado has got it all working in his garage and has showed hundreds of people … but that the government is doing its best to shut him down.  But Bubba’ll sell you a kit quietly for $39 in the mail if you’d like to get in on it all early before the rush.

– But there’s the other side of this phenomenon as well.  And that’s when we see these exciting new discovery announcements like the one I’m blogging about now in relatively reputable publications.

<cynic>

– Do I sound cynical?  

– Well, for me cynicism began all the way back in the early 80’s when I read an article in OMNI magazine that a Dr. Bussard down near San Diego in La Jolla had made a breakthrough in the theoretical physics of nuclear fusion.  Even then, we all knew that if fusion could be made real, it would be a world shaker.   This fellow had, apparently, started a small company, International Nuclear Energy Systems,  in preparation for taking all of this ‘live’.

– I took a day off from work and drove my motorcycle down from Long Beach (100km or so) to find these people.  I was going to beg and cajole my way into working with them – for free, if I had to.  

– I had an address for their company in an industrial park.  But Dr. Bussard wasn’t there when I called so I talked with a receptionist and looked at some flashy pamphlets.  After she said, ‘no’, the boss wasn’t in, I told her how far I’d come, she took pity on me and gave me a home address and told me I might try there.  So, I rode off again and eventually I found a very upscale looking house near the sea also in La Jolla, I think.  

– I knocked on the door and a young woman in her early 20’s answered.  ‘No’, her father, Dr. Bussard, wasn’t home.   I asked if she knew much about his work and told her how impressed I was with what I’d read and why I wanted to meet him.  ‘No’, she knew it was a big deal but she didn’t know a lot about it.

Truthfully, I think she found me of more interest than the fusion stuff and she asked me in to visit which rather amazed me.  But, I digress.

– I left my contact data and as much of my enthusiasm as I though I could convey through her and I departed back to Long Beach no wiser than I’d come.

– Well, nothing ever happened from any of this.  The world was not shaken by a new fusion technology and, other than that magazine article, I never heard of any of these folks again until I stopped this evening to do a bit of long-after-the-fact research.  

– You can read about some of what I found here and here. 

The fellow’s name was Robert Bussard and he was, in fact, quite a famous scientist and he was the inventor of the Bussard Ram Jet.  But his fusion ideas were, apparently not to be.

– Then, we can all remember the fiasco over cold fusion, yes?  

– And then, as well, a few months ago, I read that a new way of storing energy had been discovered and it was going to revolutionize the world.  Because now we could gather up sunlight power all day, store it and then release it at night.   All they needed was a few months to perfect the process.

– And look!  Here’s another.   In this one, we’re going to store the energy in a certain semi-magical molecule.  We’ll be able to just carry this chemical around quite safely and then, when we need the energy back, it’ll just ‘pop’ out in the form of heat.   Is that cool or what?  Yeah, right.   Just a few months or years away.

</cynic>

– So now, in this article, we have a new way to make cheap, clean water?   Well, maybe.  I mean I am hopeful but so many of these breakthroughs seem to, in the end, go pfffff to nowhere.

– I had a female friend years ago that loved to give me a bad time about things in general,  And she just loved to say to me that, “I was always patting the bed and telling folks how good it was going to be but that nothing ever happened.”   And then she’d laugh and laugh (smile).   Somehow, that anecdote seems appropriate.

– Anyway, please enjoy the article.  

– I’m going to go off now and see if they’ve found pieces of the Ark on top of Mount Ararat (again).  It’s an exciting quest.   You can follow along here:  ➡,  ➡ or ➡ 

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* Filter could sharply cut energy needed to remove salt from water

* Officials say firm has patented process, looking for partners

* Cheaper seawater purification could help ease water security fears

A defense contractor better known for building jet fighters and lethal missiles says it has found a way to slash the amount of energy needed to remove salt from seawater, potentially making it vastly cheaper to produce clean water at a time when scarcity has become a global security issue.

The process, officials and engineers at Lockheed Martin Corp say, would enable filter manufacturers to produce thin carbon membranes with regular holes about a nanometer in size that are large enough to allow water to pass through but small enough to block the molecules of salt in seawater. A nanometer is a billionth of a meter.

Because the sheets of pure carbon known as graphene are so thin – just one atom in thickness – it takes much less energy to push the seawater through the filter with the force required to separate the salt from the water, they said.

The development could spare underdeveloped countries from having to build exotic, expensive pumping stations needed in plants that use a desalination process called reverse osmosis.

“It’s 500 times thinner than the best filter on the market today and a thousand times stronger,” said John Stetson, the engineer who has been working on the idea. “The energy that’s required and the pressure that’s required to filter salt is approximately 100 times less.”

– More…  ➡

– Research thanks to Tony H.

 

A Capitalist Command Economy

March 7th, 2013

George Monbiot, as I have said several times, is an excellent writer who highlights issues that we all need to be aware of.

– I’ve discussed corporations many times here myself.  I decry their growing power over our governments and over our lives.   What Monbiot’s talking about here really gives me the chills and has made me wonder if the ‘takeover’ I’ve been on about hasn’t bigger aims than I’d previously imagined before.

– He discusses here how the conservative government in the UK seems hell-bent on converting schools from the public to the private model which is scary enough.

– But, it made me imagine that corporations, which are gaining control more and more over governments, are also moving into controlling all the things that we think of as the rightful province of government; our schools, our utilities, our water, our power, our prisons, our road systems, and just about everything else.  I say ‘rightful’ because government is suppose to do these things for the good of the people and the nation.

– It will be a radically different model if these things all end up being done by corporations for profit because they won’t be doing them for the good of the people but, rather, for the good of the corporations’s profits.  And simple look as how things have gone in the U.S., as they’ve been experimenting with privatizing prisons there, should give us all deep pause.

– dennis

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Forcing schools into the hands of unelected oligarchs is the latest contradiction of everything the market fetishists claim to stand for.

By George Monbiot, published in the Guardian 5th March 2013

So much for all those treasured Tory principles. Choice, freedom, competition, austerity: as soon as they conflict with the demands of the corporate elite, they drift into the blue yonder like thistledown.

This is a story about England’s schools, but it could just as well describe the razing of state provision throughout the world. In the name of freedom, public assets are being forcibly removed from popular control and handed to unelected oligarchs.

All over England, schools are being obliged to become academies: supposedly autonomous bodies which are often “sponsored” (the government’s euphemism for controlled) by foundations established by exceedingly rich men. The break-up of the education system in this country, like the dismantling of the National Health Service, reflects no widespread public demand. It is imposed, through threats, bribes and fake consultations, from on high.

– More… ➡

– Research thanks to Piers L.

 

Food, Corporations, Government and who’s got your back?

March 5th, 2013

– This is an original piece.  I feel pretty strongly about this stuff.  Comments will be welcomed.

– dennis

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The world has changed. I feel it in the water. I feel it in the earth. I smell it in the air. Much that once was is lost….”

~ Galadriel – Lord of the Rings

 Things are changing all around us though most of us do not see it.   Indeed, the world is nothing but change, and when enough change is going on around you, it is easy to miss some of it.

Administrations change, inflation rises and falls, the stock market wobbles along, prices at the market and at the gas station always seem to rise but then, to be fair, our wages seem rise as well.  Sometimes, amid all that change, it’s hard to see if we’re losing or winning.  After all, we’ve got businesses, families and lives to live.   The daily round of just getting on with things absorbs us.

Maybe it has always gone on but it seems to me that if we want to pick out just one area where things are going wrong, we could talk about food.

Food is big money because, after all, the millions of people who comprise a nation all have to eat and most of them are not farmers.

So, food industries are born and food is brought to us through vast networks of growers, transporters, processors, storage facilities, packagers and wholesale and retail outlets.

There are people and corporations out there making vast fortunes supplying us with food.  And therein lies a problem because where ever big money goes, there also goes big temptation.

Recently, here in New Zealand where I live, the top local executive of the American corporation, Coca-Cola, criticized New Zealand for being ‘anti-business‘ in an interview (http://tinyurl.com/br6dxex) that he gave on the occasion of his departure from the country.  Some of us here in New Zealand, myself included, were not amused.

But the real irony of his comments came a few weeks later when a story came out in the New York Times entitled, “The Extraordinary Science of Addictive Junk Food” (http://tinyurl.com/as52ncb).

This story details the efforts undertaken by major American food companies (like Nestlé, Kraft, Nabisco, General Mills, Procter & Gamble, Coca-Cola and Mars) to create foods that we just cannot resist.

On the face of it, that doesn’t sound too bad, does it?   It’s just good old Capitalism creating better products for the benefit of the American consumer?

But, it’s not all good news, I’m afraid.

These companies are corporations and they, especially the big publically held ones, are focused on only one thing and that is the maximization of profit for their shareholders.

When I say this (about corporations being solely about profits), I’m afraid that some folks might think this is some sort of a Liberal conspiracy theory on my part.

Well, it’s not.  Corporations are required in the U.S. by law to be primarily focused on profit.   You can read about it here: (http://tinyurl.com/3y63to)

In search of these profits, the big food companies, like those mentioned above, have established large and sophisticated laboratories setup to work out exactly how much of ‘this’ and how much of ‘that’ they should put into their products to make them as appealing to us as possible.  They know that the more appealing the products are, the more they will sell and thus the more they will profit.

Sadly, these companies have found through research that to maximize their sales they generally need to add more salt, fat and sugar.  And they also add preservatives and coloring agents and whatever else helps with the product’s visual appeal and its shelf life.  We all know that more salt, fat and sugar are not good for us, the consumers.   But, in the quest for profit, that becomes irrelevant.

I’m not going to go into a lot of detail here about how they optimize the appeal of their foods because it’s all in the article cited.

But remember, friends, that it is you and those you love that these companies are trying to manipulate into eating their junk food.   And they are not doing it for your health or welfare.

Quite simply, these folks do not care about whether the foods they create for profit  are making more and more of us obese or prone to diabetes (and they are making us more obese and prone to diabetes).   These concerns are irrelevant to them unless they should start to get ‘bad press’ that begins to hurt their sales.  But whichever way they turn, be assured it will be about profit.

So, to return to the subject of the Coca-Cola executive who criticized New Zealand for being ‘business unfriendly’ as he left?  One has to wonder what exactly he was criticizing New Zealanders for?  Did he judge them as  ‘unfriendly’ to business because people here in New Zealand might want to have some say in what foods they eat and how those foods might affect their health?

An American, Sinclair Lewis, said the following:

“It is difficult to get a man to understand something when his salary depends on his not understanding it.”

I think this would be the reason why the American Coca-Cola executive could have trouble understanding what the New Zealanders are concerned about.

From his point-of-view, such worries could interfere with Coca-Cola’s profits and thus with his career with Coca-Cola.  So he labels New Zealand ‘unfriendly’ to business.  That’s cynical in my view.  Does he think that New Zealanders are suppose to trade their health for Coca-Cola’s profits?

This story I’ve been sharing with you about junk food science is just one example of how corporations will pursue their profits without regard for the health of the people they sell their products to.

And this is a global problem.   If one country resists having their health corrupted in the name of corporate profits, then the corporation involved can always move along to another country.

As an example, let’s reflect a bit on the tobacco industry.

These days, people take it for granted in the U.S. that nicotine is addictive and that smoking causes cancer.

But it wasn’t always so.   You don’t have to be too old to remember a time not long ago in 1994, when several of the top U.S. tobacco executives went before the U.S. Congress and testified that nicotine was not addictive (http://tinyurl.com/4xofj7).  But the tobacco industry’s real subterfuge with regard to defending their profits began long before that.  If you follow this link (http://tinyurl.com/cl78heo), you can read about this deeper history which is referred to as ‘Operation Berkshire’.

After the congressional hearings and a lot of debate, the U.S. forced tobacco companies to lower the tar and nicotine levels in their products and to place health warnings on their packaging.

The tobacco corporations simply shifted their focus to concentrate more on other countries where there were less protections against their predatory practices.   The Philippines was one such target.   That poor country has long been a prime target of the tobacco industry.  You can read about it here: (http://tinyurl.com/cgtb4vw)

So, let me point out yet once again, that these strategies by tobacco corporations to advance and expand their markets whenever and where ever they can, with no regard for the health of consumers, is simply standard behavior for corporate entities.  Their primary motivation is the maximize the profits of their shareholders and the rest, all the human misery they cause, is irrelevant to them.

All of this begs the question, for those of you who are fortunate enough to own stocks or mutual funds, do you know what corporations your money is invested in?   Do you know what they are doing?  Are you making profits on investments that, if you really stopped to see what these corporations are doing, that you would find repugnant?

Not long after I read the story about junk food science in the U.S., I began to read another one about the Horsemeat Scandal in Europe.  Details are here: (http://tinyurl.com/cobggsg).

You’d have to have been living in a cave recently to have not heard of how the Europeans discovered through DNA testing that all over western Europe, meat labeled as beef actually contained significant amounts of horsemeat.

It’s a sordid tale and at the bottom of it, as always, it will be found that someone somewhere (whether an individual or a corporation) found a way to make extra money by cheating and substituting the cheaper horsemeat.  And they didn’t think they’d get caught or they thought that they’d make so much money that the risk would be worth it.  I doubt that they thought much about whether or not folks wanted to eat horsemeat.

I know that a lot of people in the U.S. and in other countries as well (like here in New Zealand), think that we just have too much government.

But isn’t it the government that is suppose to protect us from horsemeat scandals, from aggressively marketed junk food and from cigarettes, among things?

Some folks believe that the markets should be left alone and allowed to regulate themselves.  They believe that in a free market “cheaters never prosper“.

Well, I think that history has shown over and over again ad nauseam that this is a particularly naive point of view.  The evidence clearly seems to be that cheaters prosper quite a bit.

Another article appeared about a week ago.   This time the subject was bogus seafood in the U.S.

This was a great wake-up call for everyone in the U.S. who might have been smirking over their morning coffee and newspaper at  the horsemeat scandal in Europe.

Here’s the story in all its gory detail if you want to skip right to it: (http://tinyurl.com/buwrj5b).

It turns that an organization called Oceana.Org conducted DNA testing and determined that 33% of all fish samples subjected to testing in the U.S. were mislabeled.

That 59 percent of fish sold as tuna in U.S. restaurants and grocery stores is not actually tuna.

By retail outlets they found that, seafood was mislabeled 18 percent of the time in grocery stores, 38 percent of the time in restaurants and 74 percent of the time in sushi venues.

That 84 percent of fish samples described as ‘white tuna’ were actually Escolar.  Escolar is a type of Snake Mackerel that has rich, buttery flesh, but unpleasant side effects.

What side-effects, you ask?

Oh, just ‘prolonged, oily anal leakage’ for some of the people who eat it; nothing much.

And it only takes about 6 ounces of Escolar to cause this effect.

So, let’s go back to the ‘less government’ idea again.

Who exactly is it that we think is going to test for stuff like this?  Who is it that will ensure that when someone sells us something they call ‘Tuna’, that it is what they say it is?

While you are thinking about that, consider that 90% of all seafood consumed in the U.S. is imported.  And less than 1% of that is tested.

Consider as well that human nature seems to be such that there’s always going to be someone who, when given the opportunity to make significantly more money, is going to ‘work’ the system to do so if they can.  We can count on it.

So, shouldn’t it be obvious that someone is going to substitute cheaper varieties of fish for the more expensive ones unless they are prevented from doing so?

We’d all like to think that folks won’t cheat us, but the blindingly obvious fact is, many of them will.

In this case, it was an organization called Oceana.org (http://tinyurl.com/bxawv7x) that discovered the substitutions; not the U.S. government.

That was lucky for the American public.  But in my opinion, people should not have to rely on luck to uncover this stuff.

So, when you hear the siren song of ‘less government’ you should think about all of this.

So, why doesn’t the U.S. government protect Americans better on these sorts of issues now?   Well, sometimes they do.  But as the opening quote of the article suggests, “The world has changed”.  And it is continuing to change.

Part of the reason is because increasingly a lot of Americans believe in the idea of “less government”.  And, because they vote, their beliefs are reflected how the government runs and what it does.

Another reason is because it is in the best interest of many big corporations and high-net-worth individuals to prevent the government from making laws that interfere with their profits.  Thus these folks unleash armies of lobbyists and bags of money in their efforts to influence and control law makers.

And yet another reason is because of what’s called “The Revolving Door”.  The Revolving Door is the practice whereby a man who yesterday worked as an executive at a big coal mining company will somehow today be appointed to a high office in government to oversee the coal industry.

You can read about this practice here: (http://tinyurl.com/yzhndor)

The Revolving Door practice has been going on for a long time and it truly is an example of letting the fox into the chicken coop.  But, somehow in the U.S. (and in other countries) this has become an accepted way of doing things.  And a seriously dysfunctional way, in my opinion.

Regarding “less government”, I don’t like the over-the-top Liberal ‘nanny-state’ anymore than the next individual.  But people do, in fact, need government to  regulate business so we can all maintain our quality of life.   What we don’t need are governments that exist primarily to protect the rights of the corporations.

But, in my view, the sad truth is that these days corporations are slowly and inexorably increasing their control over our governments.

Witness the “Citizens United” ruling by the U.S. Supreme Court that says “corporations are people” (http://tinyurl.com/b4czkdp).  As a result of this ruling, corporations cannot now be limited in how much money they can donate to political campaigns.   Does that stink or what?

What do I want from my government in the U.S. or here in New Zealand (or anywhere else for that matter)?

I’d like to know that my government inspects my food and ensures that if I buy something called Tuna, that that’s what I’m getting.

I’d like a government that exerts itself to keep its populace well informed as to why the junk food being cooked up by the large corporations to maximize their profits may not be the best thing for people to eat.

I’d live a government staffed by people who haven’t just, for example, walked out the door of a coal mining company and are now sitting at a desk in the government office responsible for regulating the same coal industry.

I’d like a government that realizes that corporations bent solely on profit may not always make the best decisions for a people or for a country.  A government that will protect us against their worst excesses.

These are common sense ideas to me and most of us, I believe, would like think that this is how things are done.

But, I have to tell you, they are in general not being done this way and every day the influence of the corporations and big money over our governments grows.

Would you believe me if I said that corporations don’t even care about the health of nations?

Many people think that the economic problems in the U.S. began long before the melt-down of 2008.

They think that it actually began when many of the big U.S. based multi-national corporations realized that they could increase their profits by moving their U.S. based manufacturing operations overseas.  The corporate logic was that it will cost less to make it over there and we can therefore make more profit when we sell it.

That was good thinking for those corporations but it was bad for America.  The net result?   America has beggared itself.

Just ask yourself, how can a country remain a net creator of wealth when it isn’t making anything to sell?

And if it is not generating more than it is spending, how it can ever expect to pay off an ever increasing national debt?

So, off shoring was good for the corporations and absolutely ruinous for the American economy.   But the corporations didn’t care.  It was, as always, all about their profits.

So, the American national debt rises every year and the battles in Washington, D.C. about what to do about the debt get more and more rancorous all the time.  Everyone’s fallen into blaming everyone else because there isn’t any good solution to the mess the corporations have put us into.

The Liberals blame the Conservatives and the Conservatives blame the Liberals and the big corporate interests who are getting richer and richer just keep pouring money and lobbyists into Washington, D.C. every year to make sure that things don’t change in any way that will affect their profits.

But it gets even worse.

The main overseas beneficiary of sending American manufacturing offshore has been China.

China is the largest Communist country in the world.  China used to be dirt poor and now it is overflowing in American dollars.

America, helped by the mercenary multi-national corporations, has sent China all the money  it needs to convert the Chinese third rate, third-world military into something with first world capabilities so that now it is a force to be reckoned with.

The Chinese may look capitalistic but their government is Communist to the core and their ambition to remake us all in their image has never faded.

And, in the mean time, America’s having trouble paying its bills.

Corporations, unchecked, are a bad idea.  But they are, of course, just doing what comes natural to them when they seek profits above all else.

The truth is that they’re a lot like a junk-yard dog; it’s been trained to bite people and that’s what it does.   But you wouldn’t let a junk-yard dog run loose on the street, unchained, would you?

To be fair, corporations are good in many ways.  They drive innovation, they provide jobs, and they help the economy grow and prosper.   But they are too mono-maniacal in their focus on profit to be allowed to ‘run free’.  They, quite naturally, don’t care about the health of people or even the health of nations.

It’s my strong opinion that in every country, the number one priority of government should be to maximize the quality of life for the people of that nation.  The freedom of corporations should always be of a secondary priority.

Corporations should be allowed freedom of action only so long as their actions do not impinge on the quality of life or the freedom of the people.  Corporations will, of course, make less profits this way.  But this world should not primarily be about their profits but, rather, about the quality of life for all of us.

Until we make such a decision about our priorities, we will continue to be abused by those who care only about their profits.  Horsemeat, bogus fish, revolving doors, and foods designed to addict us and kill us.  How much evidence do we need?

Swiss Voters Approve a Plan to Severely Limit Executive Compensation

March 4th, 2013

– Imagine.  The business lobby said that this was a bad idea?   It’s hard to imagine why they said that, eh?   Greedy bastards.  It’s about time we had some sanity on this issue.

– dennis

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GENEVA — Swiss citizens voted Sunday to impose some of the world’s most severe restrictions on executive compensation, ignoring a warning from the business lobby that such curbs would undermine the country’s investor-friendly image.

The vote gives shareholders of companies listed in Switzerland a binding say on the overall pay packages for executives and directors. Pension funds holding shares in a company would be obligated to take part in votes on compensation packages.

In addition, companies would no longer be allowed to give bonuses to executives joining or leaving the business, or to executives when their company was taken over. Violations could result in fines equal to up to six years of salary and a prison sentence of up to three years.

– More… ➡

– Research thanks: Jeremy B.

 

Study Looks at Particles Used in Food

March 2nd, 2013

– I’ve been wary for sometime about the spreading use of nano particles without the research to show that they are harmless.  If you’ve ever read Cat’s Cradle by Kurt Vonnegut, you’ll remember his infamous “Ice-Nine“.

– dennis

– – – – – – – – – – – – – – – – – – – –

Nanomaterials, substances broken down by technology into molecule-size particles, are starting to enter the food chain through well-known food products and their packaging, but there is little acknowledgment by the companies using them, according to a new report from a nonprofit group that works to enhance corporate accountability.

Some companies may not even know whether nanomaterials are present in their products, the corporate accountability group As You Sow said.

Only 26 out of 2,500 companies, including PepsiCo, Whole Foods and the corporate parent of Pizza Hut and Taco Bell, responded to a survey from As You Sow about their use of nanomaterials.

“Only 14 said they don’t use nanomaterials, and of those only two had any policies on the use of nanomaterials,” said Andy Behar, chief executive of As You Sow. Various food companies have said they are interested in nanotechnology, which can help make products creamier without additional fat, intensify and improve flavors and brighten colors.

Their small size allows nanoparticles to go places in the body where larger particles cannot and enter cells. They have been found in the blood stream after ingestion and inhalation, and while research on their health effects is limited, studies have shown them to have deleterious effects on mice and cells.

“We’re not taking a no nano position,” Mr. Behar said. “We’re saying just show it’s safe before you put these things into food or food packaging.”

– More: ➡

 

The Extraordinary Science of Addictive Junk Food

February 23rd, 2013

– I rave a lot about the evil that multinational corporations are in our world.  The central complaint is that these hugely powerful entities (of the 100 largest economies in the world today, 53 are corporations) have only a single goal and that is to maximize the return on investment for their share-holders.  

– You’ll need to think about that for awhile to realize just how deeply dysfunctional that is for our world.  

– If you want to see how it works in detail in just one domain; food, then reading this will provide you with an excellent and sobering education.

– dennis

= = = = = = = = = = = = = =

On the evening of April 8, 1999, a long line of Town Cars and taxis pulled up to the Minneapolis headquarters of Pillsbury and discharged 11 men who controlled America’s largest food companies. Nestlé was in attendance, as were Kraft and Nabisco, General Mills and Procter & Gamble, Coca-Cola and Mars. Rivals any other day, the C.E.O.’s and company presidents had come together for a rare, private meeting. On the agenda was one item: the emerging obesity epidemic and how to deal with it. While the atmosphere was cordial, the men assembled were hardly friends. Their stature was defined by their skill in fighting one another for what they called “stomach share” — the amount of digestive space that any one company’s brand can grab from the competition.

James Behnke, a 55-year-old executive at Pillsbury, greeted the men as they arrived. He was anxious but also hopeful about the plan that he and a few other food-company executives had devised to engage the C.E.O.’s on America’s growing weight problem. “We were very concerned, and rightfully so, that obesity was becoming a major issue,” Behnke recalled. “People were starting to talk about sugar taxes, and there was a lot of pressure on food companies.” Getting the company chiefs in the same room to talk about anything, much less a sensitive issue like this, was a tricky business, so Behnke and his fellow organizers had scripted the meeting carefully, honing the message to its barest essentials. “C.E.O.’s in the food industry are typically not technical guys, and they’re uncomfortable going to meetings where technical people talk in technical terms about technical things,” Behnke said. “They don’t want to be embarrassed. They don’t want to make commitments. They want to maintain their aloofness and autonomy.”

– to the original: ➡

– research thanks to Rolf A.