Apr 082018
 
 April 8, 2018  Posted by at 9:10 am Finance Tagged with: , , , , , , , , , ,  


Johannes Vermeer The Concert 1663
Stolen from Gardner Museum March 18 1990, the single largest art theft in the world. Never recovered

 

Richest 1% On Target To Own Two-Thirds Of All Wealth By 2030 (G.)
Britain Aims To Resettle Poisoned Russian Ex-Spy In The US (R.)
Facebook Admits To Deleting Messages From People’s Inboxes (Ind.)
Facebook Confirms It Scans What You Send To Others On Its Messenger App (BBG)
US Homeland Security Database Of Journalists, Bloggers, Media Influencers (JT)
China Cannot Use Its Treasury Holdings As Leverage. Here’s Why (EH)
Australia’s Central Bank Frets Over Chinese Shadow Banking (CBN)
China Risks A ‘Minsky Moment’ (Auerback)
No Brexit for a Eurozone Britain? (Varoufakis)
Legalised Cannabis Could Help Solve America’s Opioid Crisis (Ind.)
US Gene-Editing Ruling Delights Plant Scientists (G.)
Hybrid Swarm Of ‘Mega-Pests’ Threatens Crops Worldwide (Ind.)

 

 

At some point it will stop. But it’s just too tempting.

Richest 1% On Target To Own Two-Thirds Of All Wealth By 2030 (G.)

The world’s richest 1% are on course to control as much as two-thirds of the world’s wealth by 2030, according to a shocking analysis that has lead to a cross-party call for action. World leaders are being warned that the continued accumulation of wealth at the top will fuel growing distrust and anger over the coming decade unless action is taken to restore the balance. An alarming projection produced by the House of Commons library suggests that if trends seen since the 2008 financial crash were to continue, then the top 1% will hold 64% of the world’s wealth by 2030. Even taking the financial crash into account, and measuring their assets over a longer period, they would still hold more than half of all wealth.

Since 2008, the wealth of the richest 1% has been growing at an average of 6% a year – much faster than the 3% growth in wealth of the remaining 99% of the world’s population. Should that continue, the top 1% would hold wealth equating to $305tn (£216.5tn) – up from $140tn today. Analysts suggest wealth has become concentrated at the top because of recent income inequality, higher rates of saving among the wealthy, and the accumulation of assets. The wealthy also invested a large amount of equity in businesses, stocks and other financial assets, which have handed them disproportionate benefits.

New polling by Opinium suggests that voters perceive a major problem with the influence exerted by the very wealthy. Asked to select a group that would have the most power in 2030, most (34%) said the super-rich, while 28% opted for national governments. In a sign of falling levels of trust, those surveyed said they feared the consequences of wealth inequality would be rising levels of corruption (41%) or the “super-rich enjoying unfair influence on government policy” (43%).

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Once they have new identities, nobody can ever ask them a question again.

Britain Aims To Resettle Poisoned Russian Ex-Spy In The US (R.)

Britain is considering offering poisoned Russian ex-spy Sergei Skripal and his daughter Yulia new identities and a fresh life in the United States in an attempt to protect them from further murder attempts, the Sunday Times newspaper reported. It said officials at the MI6 intelligence agency have had discussions with their counterparts in the CIA about resettling the victims poisoned last month in the English city of Salisbury. “They will be offered new identities,” it quoted an unidentified source as saying.

The paper said its sources believed Britain would want to ensure their safety by resettling them in one of the so-called “five eyes” countries, the intelligence-sharing partnership that also includes the United States, Canada, Australia and New Zealand. “The obvious place to resettle them is America because they’re less likely to be killed there and it’s easier to protect them there under a new identity,” it quoted what it called an intelligence source familiar with the negotiations as saying. “There’s a preference for them to be resettled in a five-eyes nation because their case would have huge security implications,” the source added.

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Some are more equal than others.

Facebook Admits To Deleting Messages From People’s Inboxes (Ind.)

Facebook secretly deleted private messages from people’s inboxes that had been sent by CEO Mark Zuckerberg, the company has admitted. Messages disappearing from people’s inboxes was first noted by TechCrunch, who cited three sources whose inboxes had been tampered with. It is not possible for normal Facebook users to delete messages from other people’s inboxes, though Mr Zuckerberg and other executives appear to have had access to the functionality for several years. Facebook said in a statement that the self-destructing feature was added in response to the Sony Pictures hack in 2014 that compromised personal information of Sony employees, as well as copies of unreleased films.

The feature may also have been used to prevent potentially embarrassing messages from resurfacing, such as a 2004 message sent by Mr Zuckerberg that reportedly called users of the social network “dumb fucks” for trusting him with their data. “After Sony Pictures’ emails were hacked in 2014 we made a number of changes to protect our executives’ communications,” Facebook said. “These included limiting the retention period for Mark’s messages in Messenger. We did so in full compliance with our legal obligations to preserve messages.” The messages were also missing when the affected users attempted to recover them using Facebook’s “download your information” tool.

Deleting private messages from people’s inboxes without their consent may potentially go against Facebook’s terms of service, which make no mention of removing content unless it is a violation of the firm’s community standards.

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We spy on you for your own good. Trust us, we know better.

Facebook Confirms It Scans What You Send To Others On Its Messenger App (BBG)

Facebook scans the links and images that people send each other on Facebook Messenger, and reads chats when they’re flagged to moderators, making sure the content abides by the company’s rules. If it doesn’t, it gets blocked or taken down. The company confirmed the practice after an interview published earlier this week with Chief Executive Officer Mark Zuckerberg raised questions about Messenger’s practices and privacy. Zuckerberg told Vox’s Ezra Klein a story about receiving a phone call related to ethnic cleansing in Myanmar. Facebook had detected people trying to send sensational messages through the Messenger app, he said. “In that case, our systems detect what’s going on,” Zuckerberg said. “We stop those messages from going through.”

Some people reacted with concern on Twitter: Was Facebook reading messages more generally? Facebook has been under scrutiny in recent weeks over how it handles users’ private data and the revelation struck a nerve. Messenger doesn’t use the data from the scanned messages for advertising, the company said, but the policy may extend beyond what Messenger users expect. The company told Bloomberg that while Messenger conversations are private, Facebook scans them and uses the same tools to prevent abuse there that it does on the social network more generally. All content must abide by the same “community standards.” People can report posts or messages for violating those standards, which would prompt a review by the company’s “community operations” team.

Automated tools can also do the work. “For example, on Messenger, when you send a photo, our automated systems scan it using photo matching technology to detect known child exploitation imagery or when you send a link, we scan it for malware or viruses,” a Facebook Messenger spokeswoman said in a statement. “Facebook designed these automated tools so we can rapidly stop abusive behavior on our platform.”

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When Facebook looks at everybody’s everything, this should come as no surprise.

US Homeland Security Database Of Journalists, Bloggers, Media Influencers (JT)

The U.S. Department of Homeland Security is looking to create a searchable database of hundreds of thousands of news sources, journalists, bloggers and “media influencers” for the federal government, a move a DHS spokesman called “standard practice.” In a job request posted last week to the Federal Business Opportunities website, the main contracting website used by the federal government, DHS wrote that it is seeking a contractor that is able to monitor up to 290,000 global news sources, track media coverage in up to 100 languages and can “track online, print, broadcast, cable, radio, trade and industry publications, local sources, national/international outlets, traditional news sources, and social media.”

The request also seeks the ability to build lists of journalists “based on beat, location, outlet type/size, and journalist role.” Data to be collected would also include an analysis of each news source’s “sentiment,” as well as geographical spread, top posters, languages, momentum and circulation. The database of “top media influencers” would include “present contact details and any other information that could be relevant, including publications this influencer writes for, and an overview of the previous coverage published by the media influencer.”

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Treasuries are the only thing China can buy with its -dollar- surplus.

China Cannot Use Its Treasury Holdings As Leverage. Here’s Why (EH)

When China builds a trade surplus, it accumulates dollars. And it has to do something with those dollars. That means its purchase of US dollar assets is non-discretionary unless it revalues its currency. Every time there is some kind of dispute between China and the United States, a litany of voices emerges to warn of spiking interest rates. These warnings are wrong-headed. We went through this very same exercise in 2010. And Michael Pettis’s commentary is useful in this context. Let me quote from Michael and explain what it means in today’s context:

“If China runs a current account surplus, it must accumulate net foreign claims by exactly that amount, and the entity against which it accumulates those claims (adjusting for actions by other players within the balance of payments) ultimately must run the corresponding current account deficit. And as long as China ran the largest current account surplus ever recorded as a share of global GDP, and the US the largest current account deficit ever recorded, and especially since China also ran an additional capital account surplus (i.e. other non-PBoC agents ran a net capital inflow), it was almost impossible for the PBoC to do anything but buy US dollar assets. Given the sheer amounts, a substantial portion of these assets had inevitably to be USG bonds.“

The source of acrimony between China and the US is China’s trade surplus with the US. Now, when China builds this surplus, it accumulates dollars. And it has to do something with those dollars. And so, for a large portion of that dollar hoard, the Chinese have decided to store it as Treasury bonds. We don’t have to argue the merits of the Trump trade position here. It’s irrelevant regarding China’s accumulation of Treasury securities or mortgage-backed securities. Note that now it is Germany instead of China that has the largest current account surplus. And the EU has drawn Trump’s ire for this reason.

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“..growing at an average annual rate of approximately 40% since 2009”

Australia’s Central Bank Frets Over Chinese Shadow Banking (CBN)

The Reserve Bank of Australia is concerned that the rapid expansion of China’s shadow banking sector over the past decade poses a threat to financial stability.The RBA estimates that China’s shadow banking sector currently stands at USD$7 trillion, or around 60% of GDP, after growing at an average annual rate of approximately 40% since 2009. This means China’s shadow banking sector is far largely proportionately compared to other emerging economies, and roughly on par with developed nations such as the UK and the US. The RBA points out that shadow banking has brought benefits to the Chinese economy, chief amongst them the provision of more innovative forms of financing to companies otherwise barred from the state-dominated banking system.

Chinese households also benefited by obtaining access to investment products that provide competitive yields, in a highly regulated financial environment that provides few investment options.These benefits have also created problems, however, in the form of surging debt growth beyond the purview of regulatory scrutiny, riskier lending that is still inextricably linked to the Chinese banking system, as well as liquidity and maturity mismatches.These risks have been further exacerbated by the relative inexperience of China’s retail investors, and the perception that many financial instruments such as bank wealth management products enjoy “implicit guarantees. ”Beijing is well aware of the risks associated with exorbitant debt growth via shadow banking activity, launching a crackdown on the sector over a year ago as part of a broader deleveraging campaign.

The recently merged banking and insurance regulator has also flagged a continued focus on local government and state-owned enterprise leverage, alongside concern over the rapid increase in household borrowing.According to RBA analysts, however, Chinese regulators are still struggling to control breakneck credit growth in the economy.“Chinese regulators have been trying to mitigate these risks for some time, but it has been a challenge to design regulations that address these risks and are not easily circumvented,” said RBA officials in the Australian central bank’s March bulletin. In January China posted record growth in lending, which surged to 2.9 trillion yuan (approx. USD$458.5 billion) for a five-fold increase compared to the preceding month.

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What Xi can’t control.

China Risks A ‘Minsky Moment’ (Auerback)

The transformation of China’s economy, both in terms of GDP growth rate and poverty reduction since it started its transition to the market system in the late 1970s, has arguably been the biggest macroeconomic event of the past half-century. The model that has characterized the country’s high output growth rates has followed in the footsteps of the Asian “tigers“: first, its high growth rates of capital accumulation, driven by high investment-output ratios; second, a marked outward orientation through export-led growth policies; and third, the pursuit of industrialization (in particular the production and export of manufacturing goods), a key ingredient for fast growth and development. By almost every metric, China has advanced from economic backwater to the world’s second-largest GDP (and by some measures, is now the largest economy).

But in spite of signs of renewed economic activity in March, the country’s debt build-up has provoked increasing concern amongst Beijing’s policy makers, as it points to an underlying long-term financial fragility, particularly if trade war pressures intensify. Just last October during the Communist Party Plenary, Zhou Xiaochuan, then head of the country’s central bank, warned of a “Minsky moment“: “When there are too many pro-cyclical factors in an economy, cyclical fluctuations will be amplified. If we are too optimistic when things go smoothly, tensions build up, which could lead to a sharp correction, what we call a ‘Minsky Moment’. That’s what we should particularly defend against.”

To elaborate on Zhou’s statement, the economist Hyman Minsky described how once the debt “disease” goes metastatic, there will come a “Minsky moment” (a term originally coined by economist Paul McCulley) when euphoria gives way to concern and then to panic liquidation and credit revulsion. When that dynamic is in full flower, policy makers are powerless to avert it, no matter how much they want to bring the punchbowl back. Governor Zhou’s public warning was no doubt in response to recent rapid increase of debt which, according to Professor L. Randall Wray, “increased from 162% to 260% of GDP between 2008 and 2016,” and remains “a topic of discussion, if not deep concern.”

It may seem odd to warn of a Chinese slowdown, given the recent renewed surge in exports and the corresponding rise in both the manufacturing and non-manufacturing purchasing managing indices (both the manufacturing and service gauges remain above 50, and therefore indicative of robust economic activity). But these gains ought to be viewed against the backdrop of a more hostile external environment for Chinese manufactured goods. Discussing the recently imposed tariffs on steel and aluminum, the New York Times reported that Trump has already provided brief exemptions to “Canada, Mexico, the European Union, Australia, Argentina, Brazil and South Korea” (countries that “account for more than half of the $29 billion in steel sold to the United States in 2017”), which reinforces the idea that it is largely China that remains the major target of Trump’s economic nationalists.

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A nice thought experiment.

No Brexit for a Eurozone Britain? (Varoufakis)

“You can check out any time you like, but you can never leave.” Prior to the 2016 Brexit referendum, I borrowed this line from the Eagles’ 1976 hit “Hotel California” as an argument against Britain exiting the European Union. I told audiences up and down Britain that if they voted to leave the EU, they would end up more entangled with the EU Commission than ever before. As British Prime Minister Theresa May is finding out, disentangling a member state from the EU is an arduous and complex undertaking. But how much harder would Brexit have been had the United Kingdom adopted the euro back in 2000?

For starters, the people of Britain would never have been consulted on whether they wanted to check out of the EU. In a hypothetical eurozone Britain, the very announcement of a referendum on membership would have triggered a bank run. Given Britain’s chronic trade and current-account deficits, an exit from the euro would have necessarily caused a decline in the international value of UK bank deposits. Foreseeing this, depositors would have responded to the announcement of a referendum by immediately withdrawing their euros in cash or by wiring them to Frankfurt, Paris, New York, or elsewhere. And, foreseeing that reaction, no British prime minister, not even David Cameron, would have dared announce a Brexit referendum.

Looking further back, what would the effect of 16 years in the eurozone have been on the relative strength of Leavers and Remainers within the Conservative Party? What would Britain’s economic circumstances have been like prior to 2016 had the euro been the UK’s currency? Would the political pressure to hold the referendum in 2016 have been weaker had Britain shared the same currency as Germany, France, and Greece? As with all counterfactuals, we are treading on thin ice here. Nevertheless, it is not difficult to sketch a plausible economic past for a UK that, hypothetically, entered the eurozone in 2000.

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Time to follow the money on pot.

Legalised Cannabis Could Help Solve America’s Opioid Crisis (Ind.)

Legalised cannabis use may help solve America’s opioid crisis, two scientific studies have suggested. Two separate peer-reviewed studies in the journal JAMA Internal Medicine found significant drops in opioid prescribing in US states that had relaxed their cannabis laws. Both studies appear to offer insights into possible ways to solve a crisis that saw 17,087 people die from prescription opioid overdoes in the US in 2016. The crisis has its origins in soaring prescription rates after a new generation of opioids were marketed in the 1980s and 1990s with inaccurate claims that they could alleviate chronic pain with minimal risk of addiction.

The new research was accompanied by an opinion piece in JAMA Internal Medicine which said both studies produced “results suggesting that cannabis legalisation may play a beneficial role in the opioid crisis”. In the first study, researchers at the University of Georgia, Athens, looked at Medicare Part D prescriptions for people over the age of 65 between 2010 and 2015. It found that prescriptions for all opioids decreased by 2.11 million daily doses per year from an average of 23.08 million daily doses per year when a state instituted any medical cannabis law. When a state opened marijuana dispensaries, opioid prescriptions dropped by 3.7 million daily doses per year.

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Loophole. And a dangerous one.

US Gene-Editing Ruling Delights Plant Scientists (G.)

Researchers in the US have been given the go-ahead to use gene-editing techniques to alter crops and plants. The decision opens the door for scientists to create a new generation of genetically altered crops without serious restriction and paves the way for approvals for similar work in Britain and the rest of Europe. The decision – by the US Department of Agriculture – has delighted scientists who had feared that limitations on the creation and growing of genetically modified crops would also be imposed on crops created using far simpler gene-editing techniques. “I think this decision by American legislators will have all sorts of benefits in the long run,” said Professor Denis Murphy of the University of South Wales.

“This is a win-win situation because agriculture for gene-editing is cheaper, faster, simpler and more precise than the genetic modification of plants, in which a gene is taken from one organism and moved to another.” The European Court of Justice indicated in January that it does not think crops created though gene-editing techniques should be regulated by the rules that govern genetically modified organisms in Europe. “At the same time, Britain’s Acre – the advisory committee on releases into the environment – also seems to be sympathetic to this position,” said Professor Huw Dylan Jones of Aberystwyth University. “It is very encouraging.”

In the wake of hostile green campaigns, Britain imposed severe restrictions on GM crops two decades ago and few have been grown. The prospect that this fate would also befall plants created by the newer and simpler technique of gene-editing worried many researchers who feared a technology at which Britain excels would be banned. These fears are now disappearing, they say. “If we have our own domestic gene-editing industry then scientists trained at our universities will have something to work on here when they qualify,” said Murphy. “At present, our young scientists have to go to work in another country if they want to continue working on the topic.”

Gene-editing could lead to the development of domestic crops particularly suited to Britain, said Dylan Jones. “Loliums and clovers that are good for grazing could be improved to make them more hardy, for example,” he said. “It is very hopeful.” Genetically modified crops are generated through the introduction of foreign DNA sequences. Gene-edited crops are created by editing an organism’s native genome. Gene-editing is more efficient, cheaper, quicker and more precise. By altering the DNA make-up of a gene the characteristics of a cell or an organism can be changed.

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I don’t like calling living creatures ‘pests’, and the tone here is a bit sensational, but the core is resistance against pesticides. We must stop poisoning nature.

Hybrid Swarm Of ‘Mega-Pests’ Threatens Crops Worldwide (Ind.)

A pair of major agricultural pests have combined to produce a “mega-pest” that could threaten crops around the world. Losses from the original pest species, cotton bollworms and corn earworms, already amounts to billions of dollars worth of food. But a hybrid of the two, shows signs of rapidly developing resistance to pesticides and it scientists fear it could cross international boundaries undetected, wiping out all the crops it comes across. Bollworms and earworms are closely related. The bollworm has its origins in Africa, Asia and Europe while the earworm is a native of the Americas. Both are in fact moth caterpillars and they feed on more than 100 plant species including vital crops like corn, cotton, tomato and soybean.

A team of Australian scientists who discovered the hybrid mega-pests think the combination of international species could be creating a new strain with unlimited geographical boundaries. It is impossible to tell which individuals are hybrids just by looking at them, meaning by the time the hybrids have been detected it may be too late. [..] In Australia, a combination of pesticides is currently being employed to manage the nation’s bollworms, but chemical resistance is a major cause for concern. Bollworms are generally better at developing resistance than their earworm cousins, and are immune to the effects of many major insecticides.

However, within the “hybrid swarm” they studied in Brazil the scientists found creatures that were largely earworm in their genetic makeup, but with bollworm DNA coding for pesticide resistance. The scientists warned that the Brazilian case highlighted the threat that new “agriculturally problematic” strains of pest could soon spread throughout the rest of the Americas. “On top of the impact already felt in South America, recent estimates that 65% of the USA’s agricultural output is at risk of being affected by the bollworm demonstrates that this work has the potential to instigate changes to research priorities that will have direct ramifications for the people of America, through the food on their tables and the clothes on their backs,” said Dr Craig Anderson, one of the study’s authors.

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May 032015
 


Harris&Ewing Hancock’s, the Old Curiosity Shop, 1234 Pennsylvania Avenue 1914

Gundlach’s Bet-Against-German-Debt Plan Has One Very Big Problem (Bloomberg)
Canada has the Most Overvalued Housing Market in the World (VC)
No New Bailout Needed If Greek Debt Restructured, Says Varoufakis (AFP)
Markets Waver As Greece Teeters On Edge Of Financial Tragedy (AFR)
Use Your Credit Card To Fight Tax Evasion, Greece Urges Visitors (Observer)
Greek Exit ‘Would Leave Western Alliance In Chaos’ (Telegraph)
Greece Braced For Weekend Of Unrest As Cash Crunch Nears (Telegraph)
German President Says Berlin Should Be Open To Greek War Reparations (Reuters)
What Does Putin Want? (Rostislav Ishchenko)
Insanity Grips The Western World (Paul Craig Roberts)
China Teaches Top Cadres Western Ideas Despite Backlash (AP)
Italy Rescues More Than 3,400 Europe-Bound Migrants At Sea (AFP)
Greece To Ask EU For Extra Funding For Migrant Influx (Kathimerini)
Many Displaced African Migrants Had No Plan to Land in Italy (NY Times)
Italian Army Growing Cannabis To Slash End User Prices (RT)
From Ukraine To Australia, Tributes Pour Out For Odessa Massacre Victims (RT)
Wildlife Decline To Lead To ‘Empty Landscape’ (BBC)

Europe’s bond markets are so distorted everything carries out-of-whack risks.

Gundlach’s Bet-Against-German-Debt Plan Has One Very Big Problem (Bloomberg)

So it turns out that Jeffrey Gundlach was really thinking out loud when he said he was looking to short negative-yielding German debt. Yes, it’s true he’d really like to. But, as he would subsequently acknowledge, it’s a very difficult trade to execute in today’s European markets. “The mechanics are challenging,” Gundlach wrote in an e-mail on April 29. Earlier this week, the chief executive officer of DoubleLine Capital said in an interview on Bloomberg TV that he’s thinking of amplifying a wager against 2-year German notes using leverage. “It seems to me there’s almost no way to lose,” he said in that interview. “I wonder why people don’t leverage up negative bonds.” There are legitimate reasons why everyone isn’t. For one, there appear to be no negative-yielding derivatives contracts tied to this debt.

And Europe closely regulates short-selling of government bonds. Then, even if you could do it, you may have to park cash at some point in European bank accounts, which make you pay to hold your money because the region’s deposit rates are negative. “You can actually lose money being short negative yielding debt,” said Ashish Shah at AllianceBernstein. “People charge you even more in the short term to hold cash.” Of course, this is an opportunity that seems too good to pass up, and traders are almost certainly trying to figure out the best way to make it happen.

The trade should be – again, in theory – very lucrative. While bonds are normally cushioned from losses due to their regular interest payments, it’s the opposite in this bizarro world of negative-yielding debt. Traders betting against bonds wouldn’t lose money if prices stayed about where they were, because there’s essentially no coupon payment. Yes, prices on this upside-down-inside-out debt could keep rising and yields could get even more negative, leading to some losses. But the chances of that happening appear to be getting smaller as economic data shows inflation and growth starting to pick up in the euro zone.

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Auckland wants that title.

Canada has the Most Overvalued Housing Market in the World (VC)

In every inflating bubble, there’s usually two camps. The first group points out various metrics suggesting something is inherently unsustainable, while the second reiterates that this time, it is different. After all, if everyone always agreed on these things, then no one would do the buying to perpetuate the bubble’s expansion. The Canadian housing bubble has been no exception to this, and the war of words is starting to heat up. On one side of the ring, we have The Economist, that came out last week saying Canada has the most overvalued housing market in the world. After crunching the data in housing markets in 26 nations, The Economist has determined that Canada’s property market is the most overvalued in terms of rent prices (+89%), and the third most overvalued in terms of incomes (+35%).

They have mentioned in the past that the market has looked bubbly for some time, but finally Canada is officially at the top of their list. Of course, The Economist is not the only fighter on this side of the ring. Just over a month ago, the IMF sounded a fresh alarm on Canada’s housing market by saying that household debt is well above that of other countries. Meanwhile, seven in ten mortgage lenders in Canada have expressed “concerns” that the real estate sector is in a bubble that could burst at any time. Deutsch Bank estimates the market is 67% overvalued and readily offers seven reasons why Canada is in trouble. Even hedge funds are starting to find ways to short the market in anticipation of an upcoming collapse. Canada’s housing situation could give rise to the world’s next Steve Eisman, Eugene Xu, or Greg Lippmann.

On the opposing side of the ring, who will contend that the Canadian housing market is just different this time? Hint: look to the banks and government. Stephen Harper, Canada’s Prime Minister, has tried to dispel fears. He recently told a business audience in New York that he didn’t anticipate any housing crisis in Canada. Just this week, the Bank of Canada also tried its best to deflate housing bubble fears. “We don’t believe we’re in a bubble,” says Stephen Poloz, the Bank’s Governor. “Our housing construction has stayed very much in line with our estimates of demographic demand.” Poloz suggested that housing costs do not necessarily have to contract to match the incomes of Canadians. Instead, he expects growth in the economy to raise wages and make housing more affordable.

Courtesy of: Visual Capitalist

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“..one thing to say we shouldn’t have joined the euro and it is another to say that we have to leave..”

No New Bailout Needed If Greek Debt Restructured, Says Varoufakis (AFP)

Greek Finance Minister Yanis Varoufakis insisted Saturday that Greece would not require a new bailout from its international creditors if they would simply restructure its debt. Athens last week resumed talks with its creditors in a bid to unblock €7.2 billion from its EU-IMF bailout before state coffers run dry. But analysts believe that even if it manages to secure the last tranche of aid, Athens may have to obtain a new rescue package to stay afloat. Varoufakis said however that Greece could do without a new bailout. “One of the conditions for this to happen though, is an important restructuring of the debt,” he told the Efimerida ton Sindakton daily in an interview published Saturday.

The radical-left SYRIZA government came into power in January on a campaign promise that it would seek to get part of its debt written off. However, its creditors have reiterated that that is impossible. Varoufakis, whose negotiating style has grated his EU counterparts, also took a swipe at the eurozone in the interview, warning that if it “doesn’t change it will die.” He added that “no country, not only Greece, should have joined such a shaky common monetary system.” Nevertheless, Varoufakis said it was “one thing to say we shouldn’t have joined the euro and it is another to say that we have to leave” because backtracking now would lead to “an unforeseen negative situation.” Asked about reported insults from fellow Eurogroup finance ministers during a tense meeting in Riga on April 24, Varoufakis was also dismissive.

Media reports said he had been branded a “gambler,” an “amateur” and an “adventurist” by his peers. “Those would have surely been heavy offenses if they had been expressed. But they were not,” said Varoufakis. Prime Minister Alexis Tsipras had reshuffled the team handling negotiations with its creditors after relations between Varoufakis and the EU hit a new low during a stormy Eurogroup meeting in Riga last week. Athens is struggling to pay salaries and pensions without the promised loans. Almost a billion euros in debt and interest is also due for repayment to the IMF by May 12. Unless an agreement is reached to unlock the remaining EU-IMF bailout money, the debt-ridden country faces default and a possible exit from the euro. Technical experts from the Eurogroup and the Greek delegation are due to be in contact all weekend, trying to resolve differences concerning sweeping reforms required by Brussels and the IMF to secure the package.

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Who cares if markets waver?

Markets Waver As Greece Teeters On Edge Of Financial Tragedy (AFR)

In an attempt to address its liquidity crunch, Athens has directed 1500 state entities – including local authorities, hospitals and universities – to hand over surplus cash reserves to the central bank. But some entities are resisting this directed, fearing that their funds may not be returned. Meanwhile, the lack of progress in negotiations with Greece’s creditors is unnerving Greece’s households and businesses, who withdrew a further €2 billion from the country’s banks in March, according to the Bank of Greece. This follows withdrawals of more than €7.5 billion in February, just under €13 billion in January, and around €4 billion last December. As a result, household and business deposits fell to €138.55 billion in March, their lowest level in 10 years. Even more worrying, early figures for April suggest that deposit outflows are again accelerating.

To compensate for their dwindling deposit base, Greek banks have stepped up their use of emergency funding provided by the country’s central bank. Last week the ECB, which now reviews the amount which Greek banks can borrow on a weekly basis, raised the ceiling on emergency liquidity assistance by a further €1.4 billion, bringing it to €76.9 billion. This emergency liquidity is playing a crucial role in keeping the country’s banking system afloat. But financial markets – along with top officials in Paris, Berlin and Brussels – are all to well aware that Athens is moving ever closer to a position where it is no longer able to pay its debts, and is forced to “default”, potentially triggering an uncontrollable bank run and a collapse of the Greek banking system.

At that point, either European politicians resolutely adopt special emergency measures to rescue the country, or the situation spirals out of control, leaving Greece with no option but to introduce capital controls and quit the euro zone. Although some European politicians are in favour of allowing Greece to default, Paris and Berlin are fearful that “Grexit” risks destabilising the euro zone and encouraging speculators to target vulnerable countries such as Italy, Portugal or Belgium. For his part, Tsipras is betting that worries about the potential disruption from a “Grexit” will eventually cause the Europeans to back away from their demands for further reforms. Still, it’s a dangerous strategy, because in Greece’s precarious position, a financial accident could occur at any time.

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The benefits of plastic.

Use Your Credit Card To Fight Tax Evasion, Greece Urges Visitors (Observer)

Greece’s tourism chief has appealed to the millions of Britons planning to visit the crisis-hit country this year to use credit cards as much as possible. The move comes as the government in Athens has signalled that it plans to raise VAT rates on some holiday islands. Andreas Andreadis made the plea to what are expected to be record numbers of holidaymakers, saying plastic could play a key role in hindering tax evasion, a perennial drain on the Greek economy. “What we are saying is that on cash transactions above a certain level please use your credit cards,” he told the Observer. “That way it forces services and shops to declare it on the cash register and issue receipts.”

Greece is bracing itself for around 25 million foreign arrivals – more than twice its population – with the vast majority heading for resorts where tax collection is notoriously lax. An estimated 2.4 million Britons will be among them. “In a country where the tax collection system is so inefficient, credit cards are the easiest way of clamping down on evasion,” said Andreadis, who heads the Confederation of Greek Tourism (Sete). “We calculate that around 40% of receipts are not issued in tourist areas to avoid VAT.” The confederation, which represents more than 50,000 enterprises in the sector, was pressing for consumers to be given incentives to use cards. Greece is in a race against the clock to clinch a cash-for-reform deal with international creditors to keep bankruptcy at bay.

Fraught negotiations with the EU and International Monetary Fund have brought the nation close to insolvency with Athens’ radical left Syriza government, voted in on a pledge to end austerity, struggling last week to pay pensions. With Greece shut out of international markets and unable to issue short-term debt, a desperate lack of liquidity has exacerbated the problem. Over the next 10 days, the country must pay two loan instalments to the IMF – including €780m on 12 May – or face the spectre of potentially devastating default. The appeal came days after prime minister Alexis Tsipras suggested credit card use being made mandatory for transactions of more than €70. In his first wide-ranging interview since assuming power in January, he said payment cards made eminently more sense than the proposal of Yanis Varoufakis, his finance minister, to use tourists as undercover tax agents.

“It’s simpler than that other idea involving people with [hidden] cameras, etc,” he told Star TV on Monday. Greece loses up to €20bn in tax evasion every year, according to finance ministry officials. The new government has made cracking down on it a top priority. Taxpayers owe in excess of €70bn to the state – nearly a quarter of its debt. Under pressure to provide reforms to unlock an intermediate €7.2bn in bailout funds held up since August, the government has also signalled it will increase VAT on popular Aegean islands. Isles such as Mykonos and Santorini would see a surcharge on hotel rooms, services and goods. The measure would bring in an estimated €350m. But it has been strongly opposed by the tourist industry, which provides one in five jobs and is by far Greece’s biggest foreign earner.

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“..there’s a whole range of political ramifications in terms of market expectations if the euro proves to be reversible. The natural question is: who will be next?”

Greek Exit ‘Would Leave Western Alliance In Chaos’ (Telegraph)

A Greek exit from the eurozone would throw the bloc into chaos and put the “whole cohesion of the western alliance in doubt”, a key figure in the country’s private sector debt restructuring has warned. While banks had reduced their exposure to Greece, which represents less than 2pc of eurozone GDP, investors are being too complacent about the implications of a Greek exit, which could have far-reaching political ramifications and amplify the polarisation between the eurozone’s core and periphery, Hung Tran, executive managing director of the Institute of International Finance (IIF), said. Mr Tran, who helped represent private sector bondholders during Greece’s debt haircut in 2012, said he remained optimistic that there was “room for compromise” and that Greece would reach a “last minute deal” to remain in the 19 nation bloc.

However, he stressed that if the country was forced out of the euro, the consequences would be complex and were “not fully understood”. “In the short term, it probably is the case that financial contagion in terms of spreading to borrowing costs of peripheral countries like Spain and Portugal would be more limited this time compared with 2010 or 2012,” he said. “However, there’s a whole range of political ramifications in terms of market expectations if the euro proves to be reversible. The natural question is: who will be next? “If Greece exiting the euro area severely strains its relationship with the EU and the West, questions will arise about the alignment of Greece in terms of foreign policy, security policy and so on, and the whole cohesion of the western alliance would be put in doubt.”

Mr Tran said the European Central Bank’s €60bn a month quantitative easing programme had helped to create a false sense of security by “overwhelming” any sense of potential spillover from the Greek crisis and pushing down borrowing costs across Europe. However, he said a Greek exit would only serve to amplify the polarisation that we have already seen in Europe. “There has been a sharp polarisation both on the right and left of the mainstream arguing that the current austerity driven approach of economic policy hasn’t worked … so the failure of reaching an agreement in Greece leading to a exit from the eurozone would make this debate and this polarisation sharper and more problematic.”

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Telegraph wishful thinking?

Greece Braced For Weekend Of Unrest As Cash Crunch Nears (Telegraph)

Greece was braced for the biggest weekend of civil unrest since its radical Left government assumed power, as tensions over the country’s future in the eurozone are set to reach breaking point in May. Athens was gripped by a throng of anti-austerity protests on Friday, to mark the Labour Day holiday across the continent. Several members of the ruling Syriza party, including embattled finance minister Yanis Varoufakis, took part in rallies, repeating they would not forsake their people and cower to the demands of creditors. In a veiled barb aimed at his paymasters, a defiant Prime Minister Alexis Tsipras tweeted: “We will prevail in our struggles to bolster and protect our rights, our democracy and our dignity”.

Labour market reforms have emerged as one of the main stumbling blocks in Greece’s three-month bail-out impasse, as European powers have pushed the Leftist regime to reverse its promises to raise the minimum wage. But Greece’s Labour minister Panos Skourletis said the policy would go ahead, calling it a “deep and immovable red line” for the government. In a taste of the domestic turmoil that could ensue should the state withold funds from its citizens, hundreds of pensioners in Athens were forced to queue outside banks on Thursday, as pensions payments were temporarily delayed. The government is scrambling to find the funds it needs to avoid defaulting on the IMF on May 6, when it is due to repay a €200m loan. Panic over the pensions payment “suggests that this comparably small IMF payment will be a headache to scrape together and underlines that Greece might well struggle to stay financially afloat much beyond May,” said Robert Kuenzel of Daiwa Capital Markets.

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What do you say to that, Schäuble?

German President Says Berlin Should Be Open To Greek War Reparations (Reuters)

German President Joachim Gauck expressed support on Friday for Athens’ demands for reparations for the Nazi occupation of Greece in World War Two, even though the government in Berlin has repeatedly rejected the claims. Gauck, who has little real power in Germany but a penchant for defying convention, said in an interview to be published in Saturday’s Sueddeutsche Zeitung newspaper that Germany should consider its historical responsibility to Greece. “We are not only people who are living in this day and age but we’re also the descendants of those who left behind a trail of destruction in Europe during World War Two – in Greece, among other places, where we shamefully knew little about it for so long,” Gauck said.

“It’s the right thing to do for a history-conscious country like ours to consider what possibilities there might be for reparations.” Greece’s demand for €278.7 billion in reparations for the brutal Nazi occupation have mostly fallen on deaf ears, but some legal experts say it may have a case. Many in Greece blame Germany, their biggest creditor, for the tough austerity measures and record unemployment that have followed from two international bailouts totaling €240 billion. Last month, economy minister and vice-chancellor Sigmar Gabriel called the demand “stupid”.

Gabriel said Greece wanted to squeeze some leeway out of its euro zone partners as they set conditions for further financial aid to help Greece avoid bankruptcy. “And this leeway has absolutely nothing to do with World War Two or reparation payments,” he said. German officials have previously argued that Germany has already honored its obligations, not least with a 115 million deutsche mark payment to Greece in 1960. Gauck, a former East German pastor, recently caused a stir by condemning the massacre of 1.5 million Armenians by Ottoman Turkish forces a century ago as “genocide”, a term that the Berlin government had long rejected. Turkey denies the charge.

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Good analysis of US-EU-Russia relations.

What Does Putin Want? (Rostislav Ishchenko)

To understand how, when and on what conditions military activity can end, we need to know what the politicians want and how they see the conditions of the postwar compromise. Then it will become clear why military action turned into a low-intensity civil war with occasional truces, not only in the Ukraine but also in Syria. Obviously, the views of Kiev politicians are of no interest to us because they don’t decide anything. The fact that outsiders govern the Ukraine is no longer concealed. It doesn’t matter whether the cabinet ministers are Estonian or Georgian; they are Americans just the same. It would also be a big mistake to take an interest in how the leaders of the Donetsk People’s Republic (DPR) and the Lugansk People’s Republic (LNR) see the future.

The republics exist only with Russian support, and as long as Russia supports them, Russia’s interests have to be protected, even from independent decisions and initiatives. There is too much at stake to allow [Alexander] Zakharchenko or [Igor] Plotnitzky, or anyone else for that matter, to make independent decisions. Nor are we interested in the European Union’s position. Much depended on the EU until the summer of last year, when the war could have been prevented or stopped at the outset. A tough, principled antiwar stance by the EU was needed. It could have blocked U.S. initiatives to start the war and would have turned the EU into a significant independent geopolitical player. The EU passed on that opportunity and instead behaved like a faithful vassal of the United States. As a result, Europe stands on the brink of frightful internal upheaval.

In the coming years, it has every chance of suffering the same fate as the Ukraine, only with a great roar, great bloodshed and less chance that in the near future things will settle down – in other words, that someone will show up and put things in order. In fact, today the EU can choose whether to remain a tool of the United States or to move closer to Russia. Depending on its choice, Europe can get off with a slight scare, such as a breakup of parts of its periphery and possible fragmentation of some countries, or it could collapse completely. Judging by the European elites’ reluctance to break openly with the United States, collapse is almost inevitable. What should interest us is the opinions of the two main players that determine the configuration of the geopolitical front and in fact are fighting for victory in the new generation of war – the network-centric Third World War. These players are the United States and Russia.

The U.S. position is clear and transparent. In the second half of the 1990s, Washington missed its only opportunity to reform the Cold War economy without any obstacles and thereby avoid the looming crisis in a system whose development is limited by the finite nature of planet Earth and its resources, including human ones, which conflicts with the need to endlessly print dollars. After that, the United States could prolong the death throes of the system only by plundering the rest of the world. At first, it went after Third World countries. Then it went for potential competitors. Then for allies and even close friends. Such plundering could continue only as long as the United States remained the world’s undisputed hegemon. Thus when Russia asserted its right to make independent political decisions – decisions of not global but regional import –, a clash with the United States became inevitable. This clash cannot end in a compromise peace.

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“Clearly, the European Parliament is a great danger to life on the planet.”

Insanity Grips The Western World (Paul Craig Roberts)

The White Media claims, and has claimed since February 2014, that there are Russian tanks and troops in Ukraine. Putin has pointed out that if this indeed was the case, Kiev and Western Ukraine would have fallen to the Russian invasion early last year. Kiev has been unable to defeat the small breakaway republics in eastern and southern Ukraine and would stand no chance against the Russian military. Recently a brave news organization made fun of the White Media’s claim that Russian tanks have been pouring into Ukraine for 14 months. The parody pictured Ukraine at a standstill. All traffic on all roads and residential streets is blocked by Russian tanks. All parking places, including sidewalks and people’s front and rear gardens have tanks piled upon tanks. The entire country is immobilized in gridlock.

Although a few have fun making fun of the gullible people who believe the White Media, the situation is nevertheless serious as it concerns life on planet Earth. There is little sign that Washington and its vassals care about life on Earth. Recently, the largest political group in the European Parliament–the European People’s Party–expressed a cavalier opinion about life on Earth. We know this, because, if we can trust Euractiv, an online EU news source, the majority EU party believes that declaring the EU’s readiness for nuclear war is one of the best steps to deter Russia from further aggression. The aggression to be stopped by Europe’s declaration of its readiness for armageddon is the alleged Russian invasion of Ukraine, and the “further aggression” is Putin’s alleged intention of reestablishing the Soviet Empire.

It must be disappointing to the Russian government to see that leaders of the European Union prefer to endorse nuclear war than to challenge Washington’s propaganda. When I read that the governing party in the European Parliament thought non-existent aggression had to be stopped by a declaration of readiness for nuclear war, I realized that money could buy any and every thing, even the life of the planet. The European People’s Party was speaking in behalf of Washington’s propaganda, not in behalf of Europe. Europe’s nuclear war with Russia would end instantly with the destruction of every European capital. The crazed vice-president of the European People’s Party, Jacek Saryusz-Wolski revealed who the real aggressor is when he declared: “Time of talk and persuasion with Russia is over. Now it’s time for a tough policy.” Clearly, the European Parliament is a great danger to life on the planet.

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Breeding Chinese Goldmanites.

China Teaches Top Cadres Western Ideas Despite Backlash (AP)

In the still, early hours, cadres make their way down tree-lined paths. They walk through a polished lobby, down dim hallways and settle themselves in rows in plain, wood-paneled classrooms. Here, they sit at the vanguard of the Communist Party of China. These rising Communist Party members from across the country have come to the China Executive Leadership Academy Pudong (CELAP) in Shanghai as part of the party’s decade-long effort to introduce its own elite to foreign ideas. Outside these walls, President Xi Jinping’s government is campaigning to scrub Western influence from classrooms, but here some 10,000 party loyalists each year hear from top Western scholars and executives about management techniques, media relations, urban development and innovation.

“It does no harm for top leaders to get to know different ideas in the world,” said Zhang Xuezhong, who was barred from teaching at East China University of Political Science and Law in 2013, after publishing an article critical of the government. “The Communist Party expects the people it rules to be ignorant, but they would not expect themselves to be like this.” As China seeks to play a more decisive role on the global stage, such exposure is becoming more important — at least for those at the forefront of transforming China’s economy and international role. For everyone else, education has become an ideological battleground, where destabilizing Western values must be vanquished lest they weaken the party’s grip on power.

“Young teachers and students are key targets of infiltration by enemy forces,” Education Minister Yuan Guiren wrote in a January essay. Around the same time, he told university officials to bar “teaching materials that disseminate Western values,” state-run news agency Xinhua reported. His remarks came shortly after Beijing issued new guidelines ordering universities to promote loyalty to the party, core socialist values, and the teachings of Xi himself. Meanwhile, Westerners continue to march through CELAP, bringing with them an uncontrollable parade of ideas. [..] “It’s a very unusual institution in China,” said Oxford University’s Nicholas Morris, who has taught at CELAP for a decade. “This institution’s job is to help Chinese leaders understand Western practice.”

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In one day. Where was Europe?

Italy Rescues More Than 3,400 Europe-Bound Migrants At Sea (AFP)

More than 3,400 migrants were rescued at sea Saturday, mainly off Libya, as Europe seeks ways to deal with the flood of people trying to reach its shores following a series of deadly shipwrecks. A total of 3,427 people were picked up during the operation coordinated by the Italian coast guard. While they said it was a “very busy day”, it was not a record for the coast guard, which coordinated the rescue of 3,791 migrants on April 12 and another 2,850 the following day. French patrol boat Commandant Birot, which was sent to boost EU patrols to deal with the influx of migrant boats in the Mediterranean, picked up 217 people off the coast of Libya.

The migrants – all men – had been on board three boats, the authorities said, adding that two suspected people smugglers were also caught and would be handed over to Italian police. In Italy, the coast guard announced late at night that 16 vessels had rescued a total of 3,427 people on Saturday alone in an operation coordinated from their headquarters in Rome.

In addition to the French patrol boat, the rescue operation mobilised four Italian coast guard ships, two Italian navy vessels, two cargo ships, two Italian customs ships and two tugs. Most notably, the navy said on Twitter that the frigate Bersagliere had rescued 778 migrants while the patrol boat Vega had picked up another 675. Some of the rescued migrants were expected to arrive overnight on the Italian island of Lampedusa, the closest to the African coast, while most of the others are expected to arrive in Sicily or southern Italy on Sunday night. According to the Italian coast guard, the French patrol vessel should land its migrants at a port in Calabria.

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Should have been taken care of a long time ago.

Greece To Ask EU For Extra Funding For Migrant Influx (Kathimerini)

Greece is to ask the European Union for €30 million of emergency funds to deal with the growing number of undocumented migrants arriving in the country, sources have told Kathimerini. The EU is already due to give Greece €470 million by 2020 for immigration-related matters, such as covering the cost of an asylum service and reception centers. However, this money covers existing operations and cannot be used to tackle problems caused by the spike in migrants reaching Greece over the last few months.

One of the things the government wants to use the emergency funds for is to hire a ferry to transport migrants from islands to reception centers or other facilities on the mainland. The coalition submitted an amendment to Parliament last week allowing authorities to bypass until the end of the year the tender process for immigration-related projects. The government says this will speed up the implementation of schemes aimed at helping migrants.

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Oooh, in-depth reporting from the NYT…

Many Displaced African Migrants Had No Plan to Land in Italy (NY Times)

By now, the unceasing tides of migrants arriving at the ports of Sicily fall into loose national categories. The Syrians usually arrive with money, bearing broken lives in canvas bags, and are able to slip out of Italy, bound for affluent northern Europe. The Eritreans may be far less wealthy but they too are well organized, with networks that move them north as well. Then there are men like Agyemin Boateng and Prince Adawiah, who were scooped out of the Mediterranean this month by an Italian rescue ship. Both are from Ghana, and neither has a plan for a new life in Europe — nor, they say, did either of them ever plan to come to Italy. They were working as laborers in Libya, until life there became untenable and returning to Ghana became unfeasible.

“There are guns and bombs,” said Mr. Adawiah, 25, who worked in Tripoli for nearly three years. “Every day, there is shooting. I’m afraid. That is why I traveled to Italy.” Europe’s migration crisis escalated sharply in April, with the coming of warmer weather to the Mediterranean. Many more smugglers’ boats took to the sea, and a record number of migrants died attempting the crossing — more than 1,700 people so far in 2015, by some estimates. Conflicts in Africa, the Middle East and Central Asia have shaped and reshaped Europe’s migrant flows in recent years, with none more transformative to the Mediterranean smuggling trade than the civil war in Syria. And the tumult in Libya is changing the migration equation once again.

Libyan lawlessness has allowed a haven for smugglers to operate along the country’s coastline, but it has also unmoored many African laborers who were working there as migrants. Many of these men now languish in Italian detention centers without contacts or plans for the future, and their growing numbers are frustrating some Italian mayors and other officials. “We don’t know anything,” said one migrant, Shamsudeen Sawud, 18, who arrived in Italy more than a week ago. “No one is telling us anything.”

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Yes, this is funny.

Italian Army Growing Cannabis To Slash End User Prices (RT)

Italy’s first medical marijuana crop – grown by the country’s military – is “coming along nicely,” according to officials at a government-funded greenhouse outside Florence. “The aim of the operation is to provide users with a product that is not always easily available on the market, at a more competitive price,” Colonel Antonio Medica, the director of the facility, told Italian daily Corriere della Sera. Medical marijuana has been legal in the country since 2013 as pain relief for conditions such as multiple sclerosis and cancer, and as treatment for others, such as glaucoma. However, as there have been no licensed producers, and the state would not pay for the treatment, those with prescriptions have had to purchase it abroad, from the Netherlands and Germany, at prices that reach up to €40 per gram.

This means many patients have simply been buying their drugs off the street, financing drug dealers, who do not pay taxes, and may be engaged in other illegal activities. By producing 100 kg of its own weed, the government hopes to undercut the street dealers. “We’re aiming to lower the price to under €15 euros ($17), maybe even around €5 euros per gram,’ said Medica, who noted that this would be similar to the black market price of the drug. The government chose a military lab, due to existing security and surveillance arrangements. While the innovations will help medicinal users, they are unlikely to undermine the illegal marijuana market in a country where one in five admitted to being smokers of the drug in a survey conducted in 2012.

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And not a word on an investigation.

From Ukraine To Australia, Tributes Pour Out For Odessa Massacre Victims (RT)

Thousands of people in Ukraine, Russia and around the world took to the streets to mark the first anniversary of the Odessa massacre. Last year, 48 activists were killed and over 200 injured as radicals set the local trade unions house on fire. The commemoration ceremonies for those who died in the fire on May 2, 2014 proceeded without serious incident in the Ukrainian port city of Odessa. A huge crowd, including the relatives of the victims, gathered in front of the Trade Unions building and released black balloons and doves in air. According to local media, the rally in Odessa was attended by around 5,000 people. The people held banners reading “fascism won’t pass” and “no to political repressions,” with some carrying photos of journalist Oles Buzina and politician Oleg Kalashnikov, who were assassinated in Kiev last month.

In the Ukrainian capital, Kiev, some 2,000 people marched to honor the victims of the tragedy in an action entitled ‘Kiev Remembers Odessa.’ The people were carrying photos of those who died in the fire, as well as pictures of Buzina and Kalashnikov. Several arrests were made during the demonstration, with the Kiev police saying that they “invited the men to a local police station”. They were later released. March to honor the victims of the Odessa massacre in Ukrainian capital Kiev on May 2, 2015.March to honor the victims of the Odessa massacre in Ukrainian capital Kiev on May 2, 2015. Earlier, reports emerged on social media that it was the organizers of the rally, who had been detained by the security officials. “The organizers of a peaceful rally have been arrested in Kiev! What for? Show me a single slogan, for which you can be arrested in a democratic ‘European’ country?” Yuri Kot, Ukrainian public figure and journalist, wrote on Facebook.

In Moscow, around 1,000 people gathered in front of the Ukrainian Embassy to Russia to commemorate the Odessa massacre victims. An outdoor photo exhibition, showcasing pictures of the burning Odessa Trade Union House, was organized together with the rally. “It was very hard to not to cry. I didn’t expect so many people to care and feel for the sorrow,” an eastern Ukrainian resident, who attended the event, told RIA-Novosti. At the end, the bell tolled 48 times to commemorate each victim of the last year’s tragedy. Remembrance events were also held in Australia, Poland, the Republic of Ireland, Switzerland, Morocco and other countries. In Italy, a monument to the Odessa tragedy was opened in the northern town of Ceriano Laghetto.

Ukraine authorities deployed over 3,000 law enforcers in Odessa ahead of the anniversary of mass killings on May 2. Odessa’s Kulikovo Field, the square where the bloodiest scenes in the last year’s confrontation unfolded, was cordoned off on Friday. People wishing to lay flowers in front of the Trade Unions building, where dozens of activists met their deaths, have had to pass through metal detectors. The streets are being patrolled by some 2,600 police officers, while 600 special service fighters are on alert, the Interior Ministry reported. Unarmed volunteer activists were also called to Odessa. “There cannot be too much police presence. It’s a demonstration of our presence and strength to those who want to shake the situation in Odessa. There will be a policeman in every square meter,” Ivan Katerhinchuk, the chief of Odessa region’s police force, told the media.

Earlier on Friday, police troops brought in from other regions and their local colleagues gathered in front of the building. CCTV footage showed dozens of trucks and patrol cars parked in rows and columns of security forces marching in the streets.

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“It’s no use having habitat if there’s nothing left to eat in it.”

Wildlife Decline May Lead To ‘Empty Landscape’ (BBC)

Populations of some of the world’s largest wild animals are dwindling, raising the threat of an “empty landscape”, say scientists. About 60% of giant herbivores – plant-eaters – including rhinos, elephants and gorillas, are at risk of extinction, according to research. Analysis of 74 herbivore species, published in Science Advances, blamed poaching and habitat loss. A previous study of large carnivores showed similar declines. Prof William Ripple, of Oregon State University, led the research looking at herbivores weighing over 100kg, from the reindeer up to the African elephant. “This is the first time anyone has analysed all of these species as a whole,” he said. “The process of declining animals is causing an empty landscape in the forest, savannah, grasslands and desert.”

Prof David Macdonald, of Oxford University’s Wildlife Conservation Research Unit, was among the team of 15 international scientists. “The big carnivores, like the charismatic big cats or wolves, face horrendous problems from direct persecution, over-hunting and habitat loss, but our new study adds another nail to their coffin – the empty larder,” he said. “It’s no use having habitat if there’s nothing left to eat in it.” According to the research, the decline is being driven by a number of factors including habitat loss, hunting for meat or body parts, and competition for food and resources with livestock. With rhinoceros horn worth more than gold, diamonds or cocaine on illegal markets, rhinos could be extinct in the wild within 20 years in Africa, said the researchers.

The consequences of large wild herbivore decline include: • Loss of habitat: for example, elephants maintain forest clearings by trampling vegetation. • Effects on the food chain: large predators such as lions, leopards, and hyena rely on large herbivores for food. • Seed dispersal: large herbivores eat seeds which are carried over long distances. • Impact on humans: an estimated one billion people rely on wild meat for subsistence while the loss of iconic herbivores will have a negative impact on tourism. The biggest losses are in South East Asia, India and Africa. Europe and North America have already lost most of their large herbivores in a previous wave of extinctions.

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