Last night at Santa Monica College (about 20 blocks from the beach here in Los Angeles, CA), police pepper-sprayed some 30 students in a crowd of about 150 protesters. The students want affordable education. They gathered during a meeting of the college's board of trustees to voice opposition to planned tuition hikes that would raise the cost of bread-and-butter courses during the summer session by as much as 400%. I was close enough to the location last night to hear helicopters and sirens as it happened.
The LA Times reports that Santa Monica police are today "trying to sort out" who used pepper-spray on the peacefully assembled students. Reports I heard last night indicated that the person or persons responsible were campus police, not Santa Monica police, who were called in later to secure the site. Among the injured: a child, who looks to be about 4 or 5 years old from these photos.
One student eyewitness tweeted:
Pepper sprayed a room full of students and two children. A poor lil five year old got it in the face.
“They’re quite joyous occasions,” she said. “It’s very liberating, not using money.” At one market, she said, she approached a woman who had come along with three large trays of homemade cakes and was selling them for a unit a cake. “I asked her: ‘Do you think that’s enough? After all, you had the cost of the ingredients, the electricity to cook …’
“She replied: ‘Wait until the market is over’, and at the end she had three different kinds of fruit, two one-litre bottles of olive oil, soaps, beans, a dozen eggs and a whole lot of yoghurt. ‘If I had bought all this at the supermarket,’ she said, ‘it would have cost me a great deal more than what it cost to make these cakes.’”
What rules the system has are designed to ensure the tems continue “to circulate, and work hard as a currency”, said Christos Pappionannou, a mechanical engineer who runs the network’s website using open-source software. No one may hold more than 1,200 tems in the account “so people don’t start hoarding; once you reach the top limit you have to start using them.” And no one may owe more than 300, so people “can’t get into debt, and have to start offering something.
RAN activists took to the streets of San Francisco last night and turned every Bank of America ATM in the city into an Automated Truth Machine.
The activists used special non-adhesive stickers designed to look exactly like BoA’s ATM interface. But instead of checking and savings accounts, these new menus offered a list of everything BoA customers’ money is being used for, including investment in coal-fired power plants, foreclosure on Americans’ homes, bankrolling of climate change, and paying for fat executive bonuses.
The economy's recovered! For CEOs, that is. Exec pay is way, way, way up in America. 40% up. One CEO, John Hammergren at McKesson, took home $145M. The money-quote: "Bosses won in every area, with dramatic increases in pensions, payoffs and perks – as well as salary." Even for fired CEOs, it was a good year, with huge parachutes spun from finest gold.
Patrick Meighan, a writer on Family Guy, describes his arrest at Occupy LA, part of a brutal crackdown on 292 protesters whose belongings were destroyed and who were then subject to cruel (and in Mieghan's case, possibly crippling) detention. Meighan explains why he did it:
So that’s what happened to the 292 women and men were arrested last Wednesday. Now let’s talk about a man who was not arrested last Wednesday. He is former Citigroup CEO Charles Prince. Under Charles Prince, Citigroup was guilty of massive, coordinated securities fraud.
Citigroup spent years intentionally buying up every bad mortgage loan it could find, creating bad securities out of those bad loans and then selling shares in those bad securities to duped investors. And then they sometimes secretly bet *against* their *own* bad securities to make even more money. For one such bad Citigroup security, Citigroup executives were internally calling it, quote, “a collection of dogshit”. To investors, however, they called it, quote, “an attractive investment rigorously selected by an independent investment adviser”.
This is fraud, and it’s a felony, and the Charles Princes of the world spent several years doing it again and again: knowingly writing bad mortgages, and then packaging them into fraudulent securities which they then sold to suckers and then repeating the process. This is a big part of why your property values went up so fast. But then the bubble burst, and that’s why our economy is now shattered for a generation, and it’s also why your home is now underwater. Or at least mine is.
Anyway, if your retirement fund lost a decade’s-worth of gains overnight, this is why.
Ottawa Citizen: "British embassies in the eurozone have been told to draw up plans to help British expatriates through the collapse of the single currency, amid renewed fears for Italy and Spain." — Xeni
This weekend, Silicon Valley's premier convention venue is hosting a job fair -- for people who want to work in India:
A job fair at the San Jose Convention Center this weekend is focused on helping companies recruit Indian workers who may in the U.S. on a visa by informing them about the professional and economic opportunities back home.
Organizers also stressed that the job fair is also open to anyone who is interested in working in India.
Among the companies involved in the job fair are: Flipkart, an Indian online shopping company; consulting firm Accenture; and Amazon.com, which runs development centers in Indian cities.
Others include: McAfee, which is now part of Intel; SmartPlay Technologies, an Indian semiconductor firm; InfoTech Enterprises, an Indian engineering design firm; Indian manufacturing firm Jindal Steel & Power; Tata Motors; San Jose-based Synapse Design; and UST Global, an IT services firm.
Bank of America may have ditched its controversial debit-card fees for voluntary customers, but people on unemployment benefits who are forced to use the bank because it has to contract to administer their payments, there are plenty of fees in store. But hey, they can afford it -- a $264 unemployment check has lots of stretch in it, right?
To withdraw her benefits, Busby, 33, uses a Bank of America prepaid debit card on which the state deposits her funds. She could visit a Bank of America ATM free of charge. But this small community in the state's rural center, her hometown, does not have a Bank of America branch. Neither do the surrounding towns where she drops off her kids at school and attends church.
She could drive north to Columbia, the state capital, and use a Bank of America ATM there. But that entails a 50 mile drive, cutting into her gas budget. So Busby visits the ATMs in her area and begrudgingly accepts the fees, which reach as high as five dollars per transaction. She estimates that she has paid at least $350 in fees to tap her unemployment benefits.
"It really boggles my mind," she said. "This bank is taking little bits of money out of thousands of pockets, including mine."
Who needs predatory payday lenders when you've got enormous, fantastically profitable banks?
Is this really the final end of the Berlusconi era, or just another pause for the Cavaliere to catch his breath?
Will he return on a fresh horse as the savior of an ever-crumbling Italy, as he has done repeatedly for the past 20 years? Will my Italian friends finally be able to travel abroad without a miasma of shame, and not be forced to explain to all what a bunga bunga orgy means? Will the numerous foreigners living and working in Italy, legal, clandestine, and semiclandestine, be able to face their children and say: we did the right thing to come here? Will they say: a new day dawns on the peninsula, the specter of crisis, gloom and crime has finally lifted! Work hard for your future!
These are open questions, and frightening questions today in Italy after yesterday's dramatic countdown, and Berlusconi's declaration that he will step down only after passing an emergency law on the Italian economic crisis. United Europe and its presses have closely followed the saga of the decadent emperor. They know that it was global economics and not his domestic scandals that pried the scepter from his hands.
Italians are wondering : whatever next? How badly off is the Italian political culture, which after all is to be blamed for many times that Berlusconi has managed to take and hold power? Where was the legitimate opposition, why were the counter-forces so weak? After the fall of Milosevic in Serbia, the deeply corrupted and dysfunctional state system was hard put to maintain any pretense of a normal government. Can Italy recover, and behave like a major G-7 power again? How is that possible?
Charlie Stross goes on a tear with "A cultural thought experiment," looking at what the wealth of the 1 percent means, what it can't buy them, and how it might be viewed from a future society.
The diminishing marginal utility law dictates that the more money we have, the less utility we get from any additional incremental gain. And this bites the top 1% very hard indeed.
Examine the world around us from the point of view of someone with a net income of $5M/year ...
Food is essentially free; you can afford to spend $1000 per meal, three meals a day, in the most expensive restaurants in London or Tokyo or Manhattan, and not make a dent in your income. (Oddly, even the hyper-rich don't typically spend $1000 on lunch every day: a more realistic expectation might be to dine out expensively twice a week, for $100K/year, and have the best of everything in-house the rest of the time, with a live-in chef, for another $100K/year.)
Clothing is essentially free; want a different $5000 suit for every day of the week? That's going to set you back only $35K! Spouse wants a dozen designer evening gowns a year? That's still going to be on the low side of $200K.
Housing is essentially free; $1000/day will rent you a penthouse suite in a five star hotel in Manhattan, while your mortgageable income will let you buy a palace in the $5-20M range. (There are places where you may need to spend more than $20M to buy a house; but not many of them.)
You don't have to do housework, interior decorating, cooking, driving, DIY home improvements, flight booking, or shopping (unless you want to). People can be hired to do any of the above for rates ranging from $15K to $100K per year, depending on the complexity of the job. And you earn $100K per week.
"Occupy the Classroom," Nicholas D. Kristof's NYT op-ed, argues that the fight for economic justice needs to include a demand for universal access to high quality early childhood education, as this is the key to social mobility.
“This is where inequality starts,” said Kathleen McCartney, the dean of the Harvard Graduate School of Education, as she showed me a chart demonstrating that even before kindergarten there are significant performance gaps between rich and poor students. Those gaps then widen further in school.
“The reason early education is important is that you build a foundation for school success,” she added. “And success breeds success.”
One common thread, whether I’m reporting on poverty in New York City or in Sierra Leone, is that a good education tends to be the most reliable escalator out of poverty. Another common thread: whether in America or Africa, disadvantaged kids often don’t get a chance to board that escalator.
Maybe it seems absurd to propose expansion of early childhood education at a time when budgets are being slashed. Yet James Heckman, a Nobel Prize-winning economist at the University of Chicago, has shown that investments in early childhood education pay for themselves. Indeed, he argues that they pay a return of 7 percent or more — better than many investments on Wall Street.