Smart Economy

When will the Recession End ? Part 255 Why the Debt Crisis Is Even Worse Than You Think

 
US debt clok on July 26 2011

If Washington is deadlocked now, how will it deal with the much bigger debt problems that lurk in the decades to come?

There is a comforting story about the debt ceiling that goes like this: Back in the 1990s, the U.S. was shrinking its national debt at a rapid pace. Serious people actually worried about dislocations from having too little government debt. If it hadn’t been for two wars, the tax cuts of 2001 and 2003, the housing meltdown, and the subsequent financial crisis and recession, the nation’s finances would be in fine condition today. And the only obstacle to getting there again, this narrative goes, is political dysfunction in Washington. If the Republicans and Democrats would just split their differences on spending and taxes and raise the debt ceiling, we could all get back to our real lives. Problem solved.

http://www.businessweek.com/magazine/why-the-debt-crisis-is-even-worse-than-you-think-07272011.html

When will the Recession End? Part 254 Signing Banks Not Off Hook

By Greg Hunter’s USAWatchdog.com 

Last week, this story from Reuters really got me upset.  The headline read: “States negotiating immunity for banks over foreclosures.”  The story said, “A coalition of all 50 states’ attorneys general has been negotiating settlements with five of the biggest U.S. banks that would include payment of up to $25 billion in penalties and commitments to follow new rules. In exchange, the banks would get immunity from civil lawsuits by the states, as well as similar guarantees by the Justice Department and Department of Housing and Urban Development, which have participated in the talks.”  (Click here for the complete Reuters story.)  I was outraged.  I posted a link to the story on the USAWatchdog site with my commentary that said, “Negotiating with criminals!!! POX on AG’s!!!” 

It has been alleged that millions of loan documents have been forged in so-called foreclosure mills because the banks did not possess the correct documents to kick people out of their homes.  One name, “Linda Green,” has shown up signed differently more than 20 different ways.  The name has been so widely used in the mortgage mess it is now synonymous with fraudulent mortgage documents.  (Click here to read more about mortgage documents with fake signatures from the AP.)

I think investigators should be able to find evidence of fraud at the loan origination level, the securitization level and the foreclosure level.   This is an outrage, and I think criminal activity is so widespread that the AG’s should be considering RICO charges, not cutting immunity deals for the bankers!  The Iowa AG, Tom Miller, is spearheading negotiations for the states.  He and other AG’s who signed on to the immunity deal should be ashamed and fired at the same time!!  Why did Mr. Miller even bother to go to law school?  I thought these guys were supposed to investigate and prosecute crimes.

Apparently, I am not the only one that thinks it is a bad idea to let the banks off the hook.  Yesterday, Bloomberg reported Massachusetts Attorney General Martha Coakley was not backing the immunity deal, and she’s not the only one.  The story said, “The banks in settlement talks with state and federal officials are seeking broad releases to protect them from legal claims. Massachusetts Attorney General Martha Coakley said yesterday she won’t support a deal that includes certain releases. New York and Delaware have raised similar concerns over terms of a possible deal. All three states are conducting investigations tied to mortgage operations of banks. Delaware and Massachusetts officials say a foreclosure settlement shouldn’t provide releases for some claims, including the bundling of mortgages into securities, while the inquiries continue.  “We’re not prepared to do a broad liability release for either securitization issues or for MERS until we’ve completed that piece of investigation,” Coakley said in a telephone interview yesterday. MERS is a national database of mortgages used by banks.  State and federal officials are negotiating a settlement with the five largest mortgage servicers, including Bank of America Corp. (BAC) and JPMorgan Chase & Co. (JPM), over their servicing and foreclosure practices. Attorneys general from all 50 states began investigating the practices last year.”   (Click here to read the complete Bloomberg story.)  

When will the Recession End? Part 253 Russia warned --2012 year of blood

As reported by western news agency from Russia, Moscow's most wanted enemy, Caucasus Emirate's Emir Dokku Abu Usman, warned that Russia would be the target of a newly strengthened Jihad in a video posted on the Kavkaz Center website on Monday.

A decade after Russian forces claimed to have driven a separatist government from Chechnya, Moscow is struggling to contain the Jihad that wants an Islamic state in Russian-occupied North Caucasus.

Chechen-born Umarov, 47, claimed responsibility for masterminding the January martyr bombing of Moscow's Domodedovo airport, which killed 37. He has also promised a year of blood and tears for Russia ahead of Putin's "parliamentary elections" in December and a "presidential poll" in 2012.

Security will be a top priority leading up to the polls for both Putin's puppet Medvedev and Putin, who led Russia into a second devastating war against Chechnya in 1999.

In the 17-minute-long video the Emir of the Caucasus Emirate, says the Mujahideen have been strengthened by overcoming recent divisions that saw three high-level militants split from his Caucasus Emirate last year.

"We want to assure you that our Jihad is starting a new chapter, Inshallah," he said wearing camouflage and an Islamic skullcap in the video posted on Kavkaz Center http://www.kavkazcenter.com/.

"We are calling on all Mujahideen in the Caucasus and in other territories so that all differences stay in the past and that all our strength, will and power is directed at attesting to the word of Allah and against our enemy."

At the end of the video in Russian and Chechen Dokku Abu Usman embraces Mujahideeb, Hussein Gakayev and Aslambek Vadalov, who had left earlier renounced their oath of allegiance to the Emir.

Their allegiance to Umarov was likely to consolidate authority within the Jihad, which has suffered from divisions and power struggles.

"We know when we are going to die, therefore we must be ready to clean our hearts and go together," he said.

The terrorist country of America has offered a $ 5 million reward for information leading up to the arrest of the Caucasian Emir.

The third Mujahid who had renounced allegiance to Umarov martyred in fighting against Russian invaders in April.

Source: Agencies

 

When will the Recession End? Part 252 No jobs, no recovery in America

No jobs, no recovery; The number of Americans unemployed for more than a year raises the pressure to create new jobs.

Philadelphia Inquirer. Philadelphia, Pa.: Jul 25, 2011. pg. A.22

 

America is caught in a vicious cycle. Companies are laying off employees because consumers aren't buying, but consumers are not buying because they fear being laid off.

After successive rounds of tax breaks and bailouts, businesses still are not hiring at levels high enough to significantly reduce the unemployment rate. And people are beginning to wonder if they ever will.

The Labor Department reported Thursday that the number of Americans filing for unemployment benefits had increased from 408,000 to 418,000 a week. Even more significant, 30 percent of the unemployed, about 4.4 million people, have been jobless for more than a year.

Betsey Stevenson, the Labor Department's chief economist, told the Wall Street Journal she did not want to say "this is the new normal." But when you have been jobless for more than a year, your status can seem "normal," and you feel as if no one cares.

Instead of hiring, too many companies are laying off workers to maintain or improve their bottom line. Only 21,500 jobs were created nationally over the past two months, keeping the unemployment rate at 9.2 percent. But that's largely due to layoffs outpacing new hires.

In May, 1.66 million workers in the private sector lost their jobs. Just last week, the technology firm Cisco announced it was laying off 6,500 workers, weapons supplier Lockheed Martin said it was laying off 6,500, and investment giant Goldman Sachs said it was letting 1,000 people go.

As Atlantis touched down Thursday to end the space-shuttle program, it also ended employment for many of the 32,000 contractors and federal workers employed in the program, not to mention tens of thousands in related jobs.

Meanwhile, state and local governments have cut 142,000 jobs this year as they try to maintain an adequate level of services without raising taxes. At least Pennsylvania, which could tax the new shale-gas industry, has an alternative, if it chooses to exercise it.

The continued loss of private-sector jobs has also focused more attention on the need to reduce outsourcing. Most people think of this as American jobs being moved to foreign shores, where workers are paid much less. But there are foreign firms with U.S. contracts, in particular Indian technology companies, that have visas to base their workers here.

More jobs for Americans is the key to kicking this country out of its post-recession funk. The federal stimulus aimed at job creation didn't do enough. Many companies instead invested in technology that allows them to use fewer workers. Those jobs won't come back, which makes it critical to develop new industries that can put people to work.

When will the Recession End? Part 251 Cargo Cult of the “Party of Regions” in Ukraine

Cargo Cult of the “Party of Regions”

 by Dr A Zalko-Tytarenko

 
Definition (as good as any other) first: A cargo cult is a religious practice that has appeared in many traditional pre-industrial tribal societies in the wake of interaction with technologically advanced cultures. The cults focus on obtaining the material wealth (the “cargo”) of the advanced culture through magic and religious rituals and practices.

Applying this to the “Party of Regions” seems somewhat a stretch. After all, Donbass is industrial area. Industry is old, so by all means it had passed pre-industrial stage of development many, many years ago. However, if one looks at the case differently – not from material, but from mentality and behaviour prospective, everything applies perfectly fine.

The key of the “Cargo Cult” is, we believe, to pray the external attributes and perform rituals, expecting for miraculous resolution of the problems, rather than to focus on the core nature of the subject of admiration. After such clarification everything falls in the right place.

Sure, leaders of the Ukrainian regime want to live “as they do in the West”. So they perform rituals, that they believe make them Western. Just like Vanuatu tribes simulate marches of the US Marines.

- They do perform court prosecution of ex- Prime Minister, suspected in corruption, as it is supposed to be done in the West (“Rule of Law Ritual”). But court is the real “kangaroo court”, with no even remote resemblance of justice. And ex- Prime-Minister is not guilty.

- They do declare adherence to Western values, (“Western Values Ritual”). But they elect to ignore appeals of “Freedom House” and Atlantic Council, saying that they are “rhetorical”.

- They do have guarantees for the investors (“Free Market Ritual”). But these guarantees are not due to Law, but due to likes or dislikes of the person, who is tribal Chief at this moment.

- They do talk to press, and invite press to the President’s residence (“Freedom of Speech Ritual”). But press is pre-selected, and does not get to see the washroom, for which the leader had paid US$500,000, with gold-plated faucet for US$5000.

- They do allow filming of Tymoshenko court proceedings (“Public Awareness Ritual”). But then Ministry of Interior summons journalists.

- They do invite artists to their celebrations (“Patron of the Arts Ritual”). But these artists are trashy Russian TV personality Ksenia Sobchak, and Yury Antonov, who was popular with Brezhnev and Andropov.

- They do play piano at public events (“Artistic Personality Ritual”). But tune is jail folklore “Murka”.

- Finally, and beyond any doubt, definition of the “tribal society” applies to the “Party of Regions” perfectly fine. It is a tribe, with its internal hierarchy, with its Chief, and with the set of customs and rules that regulates its existence. Chief decides, whom to punish, and whom to reward, based exclusively on his own view of good and bad. Law? What Law?

In the nutshell: “Party of Regions” tries to look civilized, instead being civilized, exactly like tribes at far away Pacific islands build from straw something that looks like a plane, instead of trying to get the real one. Problem in both cases is that they simply don’t understand the nature of things that they want. And they, naturally, will remain underdeveloped tribe until they will get it.

In Ukrainian....

Карго Культ "Партії регіонів"

Для початку - визначення “Карго Культу” (так само добре, як і будь-яке інше): Карго Культ є релігійна практика, яка з'явилася в багатьох традиційних доіндустріальних племін в результаті взаємодії з технологічно передових культур. Культ базується на сподіваннв отримати матеріальні блага ("карго") від передової культури з допомогою магії і релігійних ритуалів і практик.

У застосуванні до "Партії регіонів" здається дещо натяжкою. Зрештою, Донбас є промисловою зоною. Промисловість стара, отже Донбас доіндустріальну стадію розвитку пройшов багато-багато років тому. Однак, якщо поглянути на справу по-іншому: не з точки зору матеріального, а з точки зору менталітету і поведінки, то все одразу стає на місце.

Для прихильників всіх "Карго Культів", на наш погляд, характерною поведінкою є молитися зовнішнім атрибутам та виконувати ритуали, чекаючи на чудесне вирішення проблем, замість того, щоб зосереджуватися на основній природі предмету моління. Це уточнення зводить все докупи.

Звичайно, лідери українського режиму хочуть жити "як живуть на Заході». І вони виконують ритуали, що вони вважають, роблять їх “західними”. На кшалт того, як племена на Вануату імітують марші американських морських піхотинців.
- Вони через суд переслідують екс-прем'єр-міністра, у підозрі на корупцію, як це повинно робитись на Заході ("Ритуал Верховенства Закону»). Але суд вже перетворився на фарс, без будь-яких навіть віддалених ознак правосуддя. І, до того ж, екс-прем'єр-міністр не винна.
- Вони заявляють прихильність до західних цінностей, ("Ритуал Західних Цінностей"). Але вони вирішили ігнорувати звернення «Freedom House» і Атлантичної Ради, заявивши, що вони є "риторичними".
- Вони обіцяють гарантії інвесторам ("Ритуал Вільного Ринку"). Але ці гарантії надаються не через закон, але через симпатії чи антипатії людини, яка є вождем племені на даний момент.
- Вони поки розмовляють з пресою, і навіть запрошуют ь журналістів до резиденції Президента ("Ритуал Свободи Слова»). Але преса спеціально відібрана, і журналістам не показують туалет, за який лідер заплатив 500.000 дол США, з позолоченими кранами за $ 5000.
- Вони дозволяють зйомку у суді над Тимошенко("Ритуал Відкритого Судочинства»). Але потім Міністерство внутрішніх справ надсилає журналістам повістки.
- Вони запрошують артистів на їхні урочистості ("Ритуал Покровителя Мистецтв»). Але ці артисти -  російська телеведуча сумнівного гатунку Ксенія Собчак, і Юрій Антонов, який був популярний за часів Брежнєва і Андропова.
- Вони грають на фортепіано на громадських заходах ("Ритуал Інтелігентності"). Але грають вони  кримінальний фольклор: "Мурку".
- І, нарешті, і поза всяким сумнівом, визначення "племінне товариство" цілком відповідає природі "Партії регіонів". Це плем'я, зі своєю внутрішньою ієрархією, з власним вождем, і з набором звичаїв і правил, які регулюють його існування. Вождь вирішує, кого покарати, а кого нагородити, виходячи виключно з своїх власних поглядів на добро і зло. Закон? Який такий закон?
У двох словах: "Партія регіонів" намагається виглядати цивілізованою, замість того, щоб бути цивілізованою. Так само, як племена далеких островів Тихого океану будують з соломи щось схоже на літак, замість того, щоб реально щось робити. Проблема в обох випадках в тому, що вони просто не розуміють природи речей, яких вони домагаються.

І вони, природно, залишиться нерозвиненим племенем, аж доки вони не почнуть це розуміти 

Карго Культ "Партії регіонів"

Для початку - визначення “Карго Культу” (так само добре, як і будь-яке інше): Карго Культ є релігійна практика, яка з'явилася в багатьох традиційних доіндустріальних племін в результаті взаємодії з технологічно передових культур. Культ базується на сподіваннв отримати матеріальні блага ("карго") від передової культури з допомогою магії і релігійних ритуалів і практик.

У застосуванні до "Партії регіонів" здається дещо натяжкою. Зрештою, Донбас є промисловою зоною. Промисловість стара, отже Донбас доіндустріальну стадію розвитку пройшов багато-багато років тому. Однак, якщо поглянути на справу по-іншому: не з точки зору матеріального, а з точки зору менталітету і поведінки, то все одразу стає на місце.

Для прихильників всіх "Карго Культів", на наш погляд, характерною поведінкою є молитися зовнішнім атрибутам та виконувати ритуали, чекаючи на чудесне вирішення проблем, замість того, щоб зосереджуватися на основній природі предмету моління. Це уточнення зводить все докупи.

Звичайно, лідери українського режиму хочуть жити "як живуть на Заході». І вони виконують ритуали, що вони вважають, роблять їх “західними”. На кшалт того, як племена на Вануату імітують марші американських морських піхотинців.
- Вони через суд переслідують екс-прем'єр-міністра, у підозрі на корупцію, як це повинно робитись на Заході ("Ритуал Верховенства Закону»). Але суд вже перетворився на фарс, без будь-яких навіть віддалених ознак правосуддя. І, до того ж, екс-прем'єр-міністр не винна.
- Вони заявляють прихильність до західних цінностей, ("Ритуал Західних Цінностей"). Але вони вирішили ігнорувати звернення «Freedom House» і Атлантичної Ради, заявивши, що вони є "риторичними".
- Вони обіцяють гарантії інвесторам ("Ритуал Вільного Ринку"). Але ці гарантії надаються не через закон, але через симпатії чи антипатії людини, яка є вождем племені на даний момент.
- Вони поки розмовляють з пресою, і навіть запрошуют ь журналістів до резиденції Президента ("Ритуал Свободи Слова»). Але преса спеціально відібрана, і журналістам не показують туалет, за який лідер заплатив 500.000 дол США, з позолоченими кранами за $ 5000.
- Вони дозволяють зйомку у суді над Тимошенко("Ритуал Відкритого Судочинства»). Але потім Міністерство внутрішніх справ надсилає журналістам повістки.
- Вони запрошують артистів на їхні урочистості ("Ритуал Покровителя Мистецтв»). Але ці артисти -  російська телеведуча сумнівного гатунку Ксенія Собчак, і Юрій Антонов, який був популярний за часів Брежнєва і Андропова.
- Вони грають на фортепіано на громадських заходах ("Ритуал Інтелігентності"). Але грають вони  кримінальний фольклор: "Мурку".
- І, нарешті, і поза всяким сумнівом, визначення "племінне товариство" цілком відповідає природі "Партії регіонів". Це плем'я, зі своєю внутрішньою ієрархією, з власним вождем, і з набором звичаїв і правил, які регулюють його існування. Вождь вирішує, кого покарати, а кого нагородити, виходячи виключно з своїх власних поглядів на добро і зло. Закон? Який такий закон?
У двох словах: "Партія регіонів" намагається виглядати цивілізованою, замість того, щоб бути цивілізованою. Так само, як племена далеких островів Тихого океану будують з соломи щось схоже на літак, замість того, щоб реально щось робити. Проблема в обох випадках в тому, що вони просто не розуміють природи речей, яких вони домагаються.

І вони, природно, залишиться нерозвиненим племенем, аж доки вони не почнуть це розуміти

 

Good management, not just money, leads to innovative discoveries

University scientists and engineers are more likely produce inventions and patents if they work in an environment where management supports and encourages interdisciplinary collaboration and commercialization, according to a new UC Davis study.

"What is the magic formula of innovation? Is it the genius research scientist or engineer working in solitary to devise a new technical discovery? Or, is innovation a reflection of how groups of researchers collaborate? Contrary to the stereotype of the individual innovator, our study showed evidence that the spark of innovation often happens when diverse groups of researchers are organized to collaborate across their disciplinary boundaries," said Steven Currall, dean and professor at the UC Davis Graduate School of Management and the principal investigator on the study.

 

The study, "Inside Multi-Disciplinary Science and Engineering Research Centers: The Impact of Organization Climate on Invention Disclosures and Patents," was published in the journal Research Policy.

The study was co-authored by Emily Hunter, an assistant professor of management and entrepreneurship at Baylor University's Hankamer School of Business, and Sara Jansen Perry, a professor at the University of Houston-Downtown, College of Business.

The authors found that much past research has focused on the availability of funding and its influence on innovation productivity, not on organizational structure. They also found that "a good organizational climate is more readily influenced by management than by other environmental factors such as the availability of venture capital."

The research looked at the organizational climates of 21 National Science Foundation-funded engineering research centers at universities around the country.

The study included surveys of 218 faculty, ERC leaders, industry liaison officers and postdoctoral researchers.

"The upshot is that, if research organizations want more innovation productivity, their leaders must use an organizational formula that emphasizes cross-boundary exchange and support for commercialization," Currall said.

The study also found that the most productive centers were not from the most historically productive universities -- suggesting that it isn't just the presence of faculty with a track record of innovation that determines success, but rather the center's organization and management. The authors defined a "productive" center or university based on patented discoveries and inventions.

"For instance, researchers working in organizations characterized by the exchange of information and ideas across traditional subject boundaries (such as chemistry and electrical engineering) produce greater numbers of new commercializable discoveries in the form of patents that can lead to new products. And, researchers are more likely to have the courage to take the first step in the commercialization process, creation of the initial invention, when they feel that their organization supports commercialization activities," Currall said. "When the organization celebrates commercialization, researchers produce more inventions that can later lead to commercializable patents. "

The National Science Foundation created the first engineering research centers in 1985 to support commercialization of new discoveries. Between 1985 and 2006, the NSF allocated $57 million to research programs at 41 such centers throughout the United States.

The study was funded by the National Science Foundation. It is available at <http://www.sciencedirect.com/science/article/pii/S0048733311001053/>.

When will the Recession End? Part 250 Global industrial cycle taking a wrong turn

Global industrial cycle taking a wrong turn

 
In the above chart we can see that both the OECD leading indicator of economic growth as well as the major global economic PMI new orders index are dropping. This has a lot of investors, media, central bankers, politicians and economists worried. As a matter of fact. OECD is actually contracting, while the new orders indices from US to Europe and China, are dead flat on 50. Negative momentum all around!

On top of that, the Eastern part of Europe also shows quite a bit of strength within the current economic expansion. Russia, one of the BRICs, is also showing somewhat of a resilience, despite the current slowdown. Ukrainian's Industrial Production also continues to expand at around 8% year on year (not shown here). 

......But how long can that last when the rest of the world is starting to contract...bad news for Russian and Ukrainian Oligarchs.

When will the Recession End? Part 249 America....Running out of Runway

Running out of Runway

source: Greg Hunter’s USAWatchdog.com 

It looks like even the mainstream media (MSM) can see a calamity if we are right on top of one.  Finally, the dire debt ceiling negotiations between Congress and the White House were covered wall-to-wall on all the major media outlets yesterday.   No comment better describes the frightful situation America faces over its debt problem than what Treasury Secretary Tim Geithner said yesterday on FOX, “. . . we’re running out of runway.  I never thought they would take it this close to the edge and let politics get in the way of demonstrating we will pay our bills on time.”  To extend that metaphor, even if the debt ceiling is reached just before the August 2^nd deadline, doesn’t mean the government can get enough altitude to clear the trees.  It will take some time to implement the new bill, and time is very short.

Meetings in the nation’s capital yesterday did not produce a bill that can garner approval of the House, Senate and President.  At the open of the Asian markets overseas, gold was up $20 an ounce in the first hour of trading.  It hit another record high (with many more to come.)  Who knows if the yellow metal will hold onto the gains, but that amounts to a giant vote of no confidence from overseas consumers of our dollar and debt.  Remember, there are $12 trillion in liquid assets (treasury bonds and dollars) held outside the country.  A panic over the stalled debt talks in the United States could cause massive selling of those assets.  Interest rates would spike and the value of the dollar would plunge.  It would cause immediate pain for U.S. consumers and could disrupt markets worldwide.  The stakes in Washington D.C. couldn’t be higher.  What has been called a “cloud of default” could start hurling thunder bolts and producing torrential rain in the global economy.

To say the Democrats and Republicans are not on the same page is an understatement—they’re not on the same planet.  The argument between raising taxes and cutting spending has morphed.  It now includes a “must do” deal to take negotiations on raising the debt ceiling out of 2012 elections.  When the idea of a short-term debt increase was posed to White House Chief of Staff Bill Daley on “Meet the Press” yesterday, it was soundly shot down.  Host David Gregory asked, if “The President would veto a plan if it does not extend the debt ceiling into 2013?”  Daley quickly said, “Yes.”

Meanwhile, over on FOX, Speaker of the House John Boehner said, “I think the better path forward at this moment will be … to put together a process that’s doable.”   He’s basically talking about a short-term Republican plan that cuts some spending and pushes the debt ceiling up enough to pay the nations bills until the end of this year.  I don’t think the President will think that is “doable.”  That means no so-called “grand plan” and more debt ceiling debates in 2012.  Mr. Boehner says he will announce details of that plan on Monday.  On the other hand, Senate Majority Leader Harry Reid is getting a different plan together on the Democratic side.  It will reportedly cut the budget and raise the debt ceiling until after the 2012 November elections.  Does it sound like a deal is coming together to you?  Not to me.

Maybe that’s why the host of “FOX News Sunday,” Chris Wallace, asked Secretary Geithner yesterday, “What’s your plan for default?”  Geithner has already admitted he recently had meetings about this very subject with Fed Chief Ben Bernanke and others.  Mr. Geithner responded, “Our plan is to get Congress to raise the debt ceiling on time . . . we do not have the ability to protect the American people from the consequences of Congress not taking action.”  According to Geithner, 80 million checks a month are sent out by the government.  The U.S. borrows 42% of every dollar it spends, and a short-term default to some will happen.   Geithner repeatedly sidestepped the question of who will get paid and who will not.   I think Treasury debt, Social Security and the military will all get paid, but plenty of other commitments will not be.

I do not see how you tackle a debt problem by adding trillions of new debt.  I do not mean to sound like a Republican, but spending is the problem.  So where can you make some big cuts?  Neither party is talking about cutting spending for the military.  The U.S. spends more on defense than all other countries—combined.  I am not anti-military, but do we really need to start another war in Libya?  Do we really need to have bases in Korea and Europe?  Both parties are also mum on the continuing banker bailouts through Fannie and Freddie.  Why do taxpayers get the bill for $trillions in sour mortgage debt pumped into the failed mortgage giants by the big Wall Street banks?  Not a word about that by either party, let alone prosecutions.  To top it off, the big banks are in the process of negotiating immunity for their crimes!  You think I am kidding?  (Click here.)  Literally trillions could be cut in both areas, but that’s not what the debate is about.  Don’t expect the MSM to point that out because they all will get big bucks in political advertising for the 2012 election.

Most people are living like they are in the “blue pill” world of a Matrix movie.  I keep having this vision of a slow motion crash, and then, all of a sudden, someone flips a switch and bam!–we are at the speed of real life.  It’s sure looking like that switch is going to be flipped right around the beginning of August.

When will the Recession End? Part 248 New problems unearthed as roots of Greek crisis dug up

Comment : New problems unearthed as roots of Greek crisis dug up

George Kerevan. The Scotsman. Edinburgh (UK): Jul 23, 2011. pg. 40

TWO things jump out regarding the latest EU attempt to bail out Greece. First, it has taken nearly 18 months of dithering for Europe's leaders to agree on the only solution to the crisis recognised by the financial markets, namely a bond swap in which Greece's creditors roll over their loans in return for paper guaranteed by the eurozone authorities.The full details of the swap are unclear - and could still unravel. However, Europe's banks seem willing to play ball. Technically, this deal will trigger a formal default notice by the global credit agencies (Fitch has already signalled it will declare a "temporary" default status). But the extent of credit default swaps outstanding on Greek sovereign seems mercifully small, so there shouldn't be a Lehman Brothers-esque catastrophe.The other big development contained in the package is the elevation of the European Financial Stability Facility (EFSF), the limited bailout mechanism invented in May 2010 in the first attempt to prevent a Greek default. According to French president Nicolas Sarkozy, the EFSF will be transformed into a veritable "European Monetary Fund", along the lines of the International Monetary Fund. Given that France traditionally always gets to appoint the head of the IMF, and given that the IMF's previous boss (the tainted Dominique Strauss-Khan) lined up the organisation to support earlier eurozone bailouts, why all the fuss?The answer is that the root cause of the eurozone sovereign debt crisis lies in the lack of a mechanism to enforce fiscal discipline on members of the monetary union. The reason Germany and the European Central Bank seem to have relented on their earlier resistance to a bond swap (aka technical default) is they see a beefed-up EFSF as the first step in imposing EU-wide control over the lax borrowing and spending of member states. But will it work?I have doubts. Ask yourself: why did the markets lend to Greece in the first place? Because they assumed the EU would always rescue its members to preserve the euro. The creation of a European Monetary Fund might actually reinforce this moral hazard unless it is given genuine powers to sanction recalcitrant member governments. But how long will that take to agree? Plus, any shift to a eurozone fiscal policy will inevitably lead to pressure to include those EU members who are not part of the monetary union. And that means the UK.Boardroom tussles make for compulsive viewingLOCAL interest may have centred on the slump in first-half profits at ScottishPower but the real story lies in the boardroom in-fighting at the utility's Spanish owner. On Thursday, Iberdrola lost a long-running court battle to block its largest shareholder, construction giant Grupo ACS, from having representation on the board.For five years, Ignacio Gala n, head of Iberdrola, has moved heaven and earth to keep Florentino Perez, billionaire founder of ACS and chairman of Real Madrid, from direct involvement, despite ACS owning a fifth of the company. Perez blames Galafor not protecting shareholder value and wasting money on high cost, low margin renewables, while running up Iberdrola's debts to make questionable acquisitions.Iberdrola is the world's largest generator of (heavily subsidised) renewable electricity. But renewables have lost their attraction in Spain after the cash-strapped government slashed subsidies, while Iberdrola's US green investments are threatened by the advent of cheap shale gas. It's no surprise the company has cut planned new global renewables capacity by a third.How will any boardroom tussle affect ScottishPower, where Keith Anderson, head of the company's renewables operation, has been appointed overall boss? With construction in Europe in a downturn, Perez and ACS want Iberdrola to generate profits rather than wind. This could put a question mark over future investment in Scottish renewables, especially if this is debt-financed.But Perez cannot take total control without allies - other big shareholders include Qatar's sovereign wealth fund. Perez presumably intends to wait for Galato put a foot wrong. Gala n's next play is said to be a merger with Germany's RWE, though Russia's Gazprom also has eyes on it. This is better than watching the new series of Dallas.

A*STAR Scientist Discover How to Combat Hospital-Acquired Infections, Deadly Food Poisoning And Bioterrorism Toxins

This study paves the way for developing toxin antidotes to safeguard public health and national security.

            A team of scientists from A*STAR’s Institute of Molecular and Cell Biology (IMCB) has discovered the secret recipe for ‘antidotes’ that could neutralize the deadly plant toxin Ricin, widely feared for its bioterrorism potential, as well as the Pseudomonas exotoxin (PE) responsible for the tens of thousands of hospital-acquired infections in immune-compromised patients all over the world. The results of this first ever genome-wide study to understand how the Ricin and PE toxins attack cells may also be useful for designing more effective antidotes against Diphtheria and Shiga-like toxins secreted by infectious strains of E. coli bacteria, such as those responsible for the recent food poisoning outbreak in Germany.

2.         In this study, the team led by IMCB Principal Investigator, Dr Frédéric Bard examined the entire human genome of about 22,000 genes to identify those genes of normal host cell processes which Ricin and PE toxins hijack in order to kill the cell. Of the several host genes identified, the team discovered one called ERGIC2 to be an attractive therapeutic target because it is not only highly essential for Ricin but also required for PE intoxication. “This means that we could potentially develop a generic antidote that is effective against the two different types of toxins by blocking ERGIC2 function,” said Dr Bard.

3.         Ricin is an extremely potent poison that can easily be purified from the widely available castor beans. Security experts say an amount roughly equivalent to half a grain of rice is enough to kill an adult, making it 1,000 times more poisonous than cyanide. There are currently no known antidotes for Ricin, and the ease of production of this tasteless, odorless plant toxin is why ricin is feared for its immense bioterrorism potential.

4.         Hospital-acquired infections (HAIs) are a major healthcare problem affecting millions of people around the world. The U.S. Centers for Disease Control and Prevention estimates that HAIs leads to US$45 billion in healthcare cost annually and results in nearly 100,000 deaths per year, making HAIs the fourth leading cause of death. The bacteria Pseudomonas aeruginosa that secretes PE toxin is a common cause of HAIs in vulnerable individuals, including those with burn injuries or receiving intensive care. Unfortunately, HAIs are increasingly difficult to treat because the emergence of antibiotic-resistant bacteria is on the rise. Similarly, the E. coli strain that produces Shiga toxins, found in the recent deadly food poisoning cases in Germany, were also resistant to antibiotics. Moreover, in food poisoning cases caused by such toxin-producing bacteria, doctors refrain from using antibiotics as killing the bacteria actually causes more toxins to be released, bringing on the worst symptoms of the illness. There is therefore a real need worldwide for antidotes against these life-endangering toxins. 

5.         Highlighting the significance of this study, Dr Bard added, “Through this genome-wide screen, our understanding of how toxins interact with human cells at the molecular level expanded tremendously. Our hope is that with these new therapeutic targets identified from the human genome, we will be one step closer to finding toxin antidotes that will make hospital-acquired infections and enterotoxic E. Coli outbreaks a thing of the past.”

More about protein toxins

6.         Though immunologically different from each other, Ricin, PE, Diphtheria and Shiga toxins all kill by destroying the cell’s protein synthesis ‘factories’, the place where all proteins necessary for the cell’s survival are produced. To travel to these protein ‘factories’ in the cell, the toxins first trick the host cell into turning off a natural defense mechanism that destroys foreign proteins. Next, they exploit the host cell’s internal transport pathway to reach the protein ‘factories’, destroying them and killing the cell. When this happens, cell death is imminent. If not contained, toxins released from dead cells can spread to neighboring healthy cells, resulting in rapid and widespread tissue and organ damage. 

7.         By identifying the specific host genes required for these toxins to attack the cell’s protein ‘factories’, this study effectively singled out the attractive therapeutic targets from the entire human genome for developing antidotes that could potentially be effective against any toxins that share the same mode of action. For instance, ERGIC2 was found to be an important component of the cell’s internal transport pathway that the toxins hijack to reach the cell’s protein ‘factories’.

 

Notes for Editor:

The research findings described in this news release can be found in the 21 July 2011 advance online issue of Developmental Cell under the title, "Genome-wide RNAi screens identify genes required for Ricin and PE intoxications" by Dimitri Moreau, Pankaj Kumar, Shyi Chyi Wang, Alexandre Chaumet, Shin Yi Chew, Hélène Chevalley and Frédéric Bard.

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