What Europe and the IMF Are Doing to Greece: A First-Hand Look

Stephan:  The meta-view is important, but so is local knowledge, because it gives real world context. Here is what is happening in Greece. This is what austerity economics produces in its extreme manifestation. Contrast this with what has happened in Iceland.
Poverty on the streets of downtown Athens. The authorities registered 20 percent more homeless in 2011.  Credit: photo: DPA

Poverty on the streets of downtown Athens. The authorities registered 20 percent more homeless in 2011.
Credit: photo: DPA

At the moment, we see only the dark face of Europe,” said Leonidas Fotinos. “They want to buy Greece cheap.”

A large, young-looking man in his early 50s, Leonidas studied economics at university and was now running a small tour business on the historic Aegean island of Milos. He could hardly have been more removed from the street protests and ideological struggles in Athens, but he had strong views on how the conflict between Greece and its foreign creditors was uprooting the lives of ordinary Greeks.

The only wealth most Greeks had was in their own family property, he explained in his poetic English. He himself had a property on the outskirts of Athens. Before the global economic crisis, it had been valued at €800,000, against which he could borrow at a bank. Now it was worth maybe […]

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Norway fund could trigger wave of large fossil fuel divestments, say expertsDamian Carrington

Stephan:  In my view, coal is going to be the first carbon energy source to wither and die. It will always be mined because there are non-burning uses for coal in industrial chemistry.  But it will be a vastly diminished industry, operating under much tighter controls because its lobbying power will also diminish. Although it has gotten little coverage in the States I see the decision by Norway to divest from coal, as this  reports describes, as the latest and most powerful example of this transition out of carbon trend. A critical consensus is emerging in collective consciousness that coal is bad as an energy source, and one measurable way this is being expressed is by individual choices concerning investment in coal. This event may be the tipping point.
Other investors will follow Norway’s lead out of fossil fuels, say experts  Credit: Michaela Rehle /Reuters

Other investors will follow Norway’s lead out of fossil fuels, say experts
Credit: Michaela Rehle /Reuters

Norway’s decision to dump all coal-focused investments from its $900bn sovereign wealth fund could unleash a wave of divestment from other large funds, according to investment experts. The fund, the largest in the world, is one of the top 10 investors in the global coal industry.

The move, agreed late on Wednesday, is one of the most significant victories to date for a fast-growing and UN-backed fossil-fuel divestment campaign. It will affect $9bn-$10bn (£5.8-£6.5bn) of coal-related investments, according to the Norwegian government.

“Investments in coal companies can have both a climate risk and a future financial risk,” said Svein Flaatten of the governing Conservative party, which made a cross-party agreement to implement the selling of coal investments.

A series of analyses have shown that the world’s existing reserves of fossil fuels are several times greater than can be burned while keeping the temperature below the […]

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California Dreaming: Record $500 Million Tag on L.A. Home

Stephan:  I take this story very seriously. The very fact of the existence of this house tells us something is deeply wrong with our economy. It give us data showing the new aristocracy literally lives in world most cannot even imagine. This separation creates two realities, and democracies cannot function under those conditions. Like climate change we are constructing our own destruction through grotesque wealth inequity.
A $500 million house. Rendering of Niami's under-construction mansion in L.A.’s Bel Air neighborhood.  Credit: McClean Design via Bloomberg

A $500 million house. Rendering of Niami’s under-construction mansion in L.A.’s Bel Air neighborhood.
Credit: McClean Design via Bloomberg

One of the biggest homes in U.S. history is rising on a Los Angeles hilltop, and the developer hopes to sell it for a record $500 million.

Nile Niami, a film producer and speculative residential developer, is pouring concrete in L.A.’s Bel Air neighborhood for a compound with a 74,000-square-foot (6,900-square-meter) main residence and three smaller homes, according to city records. The project, which will take at least 20 more months to complete, will exceed 100,000 square feet, including a 5,000-square-foot master bedroom, a 30-car garage and a “Monaco-style casino,” Niami said.

“The house will have almost every amenity available in the world,” he wrote in an e-mail. “The asking price will be $500 million.”

Estates with views of the Los Angeles basin are the California counterpart to Manhattan’s penthouses or London’s Mayfair manors, […]

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The Price We Pay for Conservative Scorn of Amtrak

Stephan:  Do you ever ask yourself why America, which once had a train system that was the envy of the world, has allowed that system to deteriorate to the point we are at best a second world country? Am I exaggerating? Ask anyone who has traveled on a train anywhere in Europe, China, Korea, Japan, or Singapore how they rate their experience. It is so bad that except for the Northeastern corridor very few people even ride trains anymore. Why is this. The answer is pretty simple: Republicans don't like Amtrak or mass transport. This report makes the case.
An Amtrak train leaves the station.

An Amtrak train leaves the station.

Recently on a Tuesday night, an Amtrak train spectacularly derailed on its way through Philadelphia, killing at least seven people. The following morning, a House appropriations subcommittee voted to cut federal funding for Amtrak by about 20 percent. Those are two dots Republicans don’t want you to connect.

“Don’t use this tragedy in that way,” Rep. Mike Simpson is quoted in a Politico article as saying, after Democrats on the appropriations subcommittee for transportation and housing criticized Republicans for proposing and eventually approving the cuts.

The vote took place before news reports that the train may have been going around a curve at speeds of about 100 miles per hour when the derailment occurred. If those reports had surfaced earlier, the Republican objections to linking budget cuts to the derailment would likely have been much louder.

The objections would also have been equally out of line. Here are a couple of issues to consider.

First, there’s the site of the crash itself, which the […]

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Why Are the Islamic State’s Commanders so Much Better than the Iraqi Army’s?

Stephan:  Have you wondered how it is possible that we could pour over a trillion dollars into the Iraq military and government and yet they collapsed when put to the test? Here's a pretty good answer to that question. One thing has become very clear: Paul Bremner's decision to disband the Iraqi military and throw its general and senior officers into the streets must rank as one of the stupidest tactical decisions in history. I saw an old television clip the other day of Dick Cheney saying that the war would be a cakewalk, and we would be welcomed as liberators and thought to myself: why isn't this man in prison?
Iraqi general

Iraqi generals

Shiite militias and Iraqi government forces have started to move into place around the Islamic State-held city of Ramadi in preparation for a highly-publicized but hastily-planned push to wrest the city from the fighters who chased the Iraqi army out earlier this month.

U.S. military officials believe that the militants had been carefully planning the city’s conquest for weeks, slipping fighters into the city to isolate several government buildings, then surrounding and isolating the Iraqi forces trapped in those pockets. They also battered Iraqi positions with dozens of captured Iraqi armored vehicles and bulldozers packed with explosives — 10 of which have been reported to be as large as the 1995 Oklahoma City blast. With scores dead and wounded, the exhausted and demoralized Iraqi forces were ordered to pull back to defensive positions outside of the city. U.S. officials said that dozens of armored vehicles, along with tanks and artillery pieces, were abandoned by government forces.

Furious American policymakers blasted the Iraqis for effectively abandoning the city. The Iraqi army “was not driven out of Ramadi,” Chairman of the Joint Chiefs […]

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