Ian Welsh writes on Naked Capitalism with 21 dismal and compelling "basics" about the economy and the so-called "recovery."
7) Europe, ex. Germany, is in recession.
8 ) the developed world is in depression, it never left depression. During depressions there are recoveries (such as they are) and recessions, but the overall economy is in depression.
9) China’s economy is slowing down. Since China is the main engine of the world economy, followed by the US, this is really bad. If it goes into an actual recession, bend over and kiss your butt goodbye.
10) Austerity is a means by which the rich can buy up assets which are not normally on the market for cheap.
11) the wealth of the rich and major corporations has recovered and in many countries exceeded its prior highs. They are doing fine. Austerity is not hurting them. They control your politicians. The depression will not end until it is in their interest for it to do so, or their wealth and power is broken.
12) The US play is as follows: frack. Frack some more. Frack even more. They are trying the Reagan play, temporize while new supplies of hydrocarbons come on line. Their bet is that they’ll get another boom out of that. If they’re right, it’ll be a lousy boom. If they’re wrong (and the Saudis think they are, and the Saudis have been eating their lunch since 2001) then you won’t even get that. Either way, though, they’ll devastate the environment, by which I mean the water you drink and grow crops with.
13) For people earning less than about 80K, the economy never really recovered. Read more at http://www.nakedcapitalism.com/2012/09/some-basics-on-the-economy.html#0PPQV6PGXuqWiWc9.99
* Stop Pretending Art Is Hard. From botched art restoration to manifesto in one t-shirt.
* Talk on Beat SF, Turing and Burroughs. Rudy Rucker being as Ruckerian as is humanly possible, and we're all better for it.
The Canadian Border Service Agency has been ordered to stop hunting for illegal drug exporters and worry instead about catching nuclear material and stolen car smugglers. Lee Berthiaume writes for Postmedia News:
The directive, contained in an internal memo to Canada Border Service Agency managers that was obtained by Postmedia News, is unlikely to make officials in the United States and other countries very happy.
But analysts say that in an age of finite resources, the agency has decided it makes more sense to target areas where it thinks it can make a difference.
The article goes on to quote Eugene Oscapella of the Canadian Foundation for Drug Policy, describing how hard it is to catch dope smuggling, versus big things like cars and radioactive things like uranium.
I grab a chair from a stack in the corner and take a seat, studying a sign that implores me to be "true" and "passionate" and "creative." In reality, passion and creativity have nothing to do with it. Labor Ready provides warm bodies for grunt work that pays minimum wage or thereabouts. "Here's a sledgehammer, there's the wall," is how Stacey Burke, the company's vice-president of communications, characterized the work to Businessweek back in 2006.
Read the whole piece here: "Everyone Only Wants Temps" (Mother Jones).
In Bloomberg, Chris Christoff reports on the city of Detroit's plan to switch off up to half of its municipal streetlights, reducing or eliminating public lighting in "distressed" areas, noting that other cities, including neighboring Highland Park, as well as Colorado Springs, have already done this:
A single, broken streetlight on the northeast side brings fear to Cynthia Perry, 55. It hasn’t worked for six years, Perry said in an interview on the darkened sidewalk where she walks from her garage to her house entrance.
“I’m afraid coming in at night,” she said. “I’m not going to seclude myself in the house and never go anywhere.”
In southwest Detroit, businesses on West Vernor Highway, a main commercial thoroughfare, have sought $4 million in private grants to fix the situation themselves. The state would pay $2.5 million, said Kathy Wendler, president of the Southwest Detroit Business Association.
Jamahl Makled, 40, said he’s owned businesses in southwest Detroit for about two decades, most recently cell-phone stores. He said they’ve have been burglarized more than a dozen times.
“In the dark, criminals are comfortable,” Makled said. “It’s not good for the economy and the safety of the residents.”
In the Globe and Mail a Canadian Press report by Nelson Wyatt on the mass-kettling and arrest of protesters in Montreal last night. A long-running and hard-fought student strike over tuition hikes led to the passage of a shameful law that limits the rights of protesters. Quebeckers are out in force to protest this law, and often in sympathy with the students' demands. The police have responded with "kettling," the tactic of cordoning off a large area and declaring the resulting space to be a civil-rights-free zone, such that anyone caught inside is arbitrarily detained without access to shelter, food, health services, or toilets. (Above, a photo of Montreal police pepper-spraying demonstrators at a march last week).
Riot officers stood impassively around the corralled demonstrators, feet planted and batons clutched in gloved hands. On a nearby street, a Quebec provincial police officer was seen snapping a rod topped with the flag of the hardcore anti-capitalist Black Bloc and tossing it between two parked cars.
Police on horseback also provided reinforcement as officers sorted out the crowd.
Emmanuel Hessler, an independent filmmaker who had been following the march for a few blocks, said in a telephone interview with The Canadian Press from inside the police encirclement that he was surprised by the action, saying, “Suddenly, there were police all around us.”
While the crowd waited to be led away one by one to be handcuffed and sent for processing at a police operational centre – a procedure expected to take several hours – a man started reading poetry and the crowd hushed to listen. Someone else sang a folk song. At one point a woman called out the phone number of a lawyer which the mob took up as a chant.
Mr. Hessler, 30, was able to tweet to friends, “We are about to get cuffed and off in a bus. Don’t know what happens after. Wish me luck.”
Some demonstrators who had escaped the police cordon continued to march elsewhere while others milled about beyond the police lines and cheered as buses took the detainees away.
400 arrested as Montreal police kettle demonstrators (Thanks, Mom!)
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Shares of Facebook (FB) opened at $42.05 on today, up about 11 percent from the IPO price of $38. At this valuation, the company is worth around $115 billion. But shortly after the open, despite all the bubblicious hype leading up to FB's debut: share price dropped. At the time of this blog post, the price is hovering around $38.
The WSJ reports that trading volume was more than 375 million in first three hours of listing, more than 6.5% of total market volume. Trade volume is expected to set a new record in trading volume on IPO day.
STOCKENFREUDE (n): That feeling you get, as someone who loathes Facebook, seeing FB shares crap out on IPO day.
Cocoa Beach is a Florida town where the economy was for decades buoyed by the NASA Space Shuttle program. Astronauts, aerospace contractors, service workers, and their families all made their way to communities like this one along the "space coast," near Kennedy Space Center.
I traveled to Cocoa Beach a few times last year with Miles O'Brien, Kate Tobin, and the SpaceFlightNow crew, for the final shuttle launches. Press and fans swooped in around those launches like migratory birds. Everyone in town—donut shops, cigar stores, restaurants, strip bars, and, of course, hotels—everyone depended on the space industry for their livelihoods.
But now, the shuttle program is gone. Property values and many of those small locally-owned businesses have tanked. It's a huge bummer. There are big-picture ways to tell this story, but sometimes, smaller stories tell it best.
So here's one: the owner of a garish, hot pink motel along the Cocoa Beach strip called Fawlty Towers (after the excellent British comedy series starring John Cleese) is relaunching the joint as a nudist resort.