Billiges Öl zwingt Saudiarabien zum Sparen

Weil die Ölpreise drastisch gesunken sind, erwartet das saudische Königshaus ein Milliardendefizit - und hat deshalb drastische Sparmassnahmen angekündigt. Im Zentrum steht ein Subventionsabbau auf Strom, Wasser und Treibstoff. Zudem soll die Wirtschaft reformiert werden. Das Gespräch mit dem Saudiarabien-Kenner Tobi Matthiesen.

Dutch City Plans to Pay All Citizens a ‘Basic Income’, and Greens Say It Could Work in the UK

THE GUARDIAN: Utrecht takes step towards paying people a salary whether they work or not

It’s an idea whose adherents over the centuries have ranged from socialists to libertarians to far-right mavericks. It was first proposed by Thomas Paine in his 1797 pamphlet, Agrarian Justice, as a system in which at the “age of majority” everyone would receive an equal capital grant, a “basic income” handed over by the state to each and all, no questions asked, to do with what they wanted.

It might be thought that, in these austere times, no idea could be more politically toxic: literally, a policy of the state handing over something for nothing. But in Utrecht, one of the largest cities in the Netherlands, and 19 other Dutch municipalities, a tentative step towards realising the dream of many a marginal and disappointed political theorist is being made. » | Daniel Boffey in Utrecht | Saturday, December 26, 2015

Merry Christmas! Joyeux Noël ! Fröhliche Weihnachten! Buon Natale! Felix Nativitas! Nadolig Llawen!

'We Three Kings', an original collage by James C. Christensen.
Courtesy of Google Images

Louis-Claude Daquin: Noël X

Hark the Herald Angels Sing
Hark the Herald Angel Sing - St.Paul's Cathedral - London (UK)

Gloria in excelsis Deo Et in terra pax hominibus bonae voluntatis, Laudamus te, benedicimus te, adoramus te. Glorificamus te. Gratias agimus tibi, propter magnam gloriam tua.

Inequality: Richest One Per Cent 'Have as Much Wealth as the Poorest 57 Per Cent Combined'

THE INDEPENDENT: The full extent of the banking industry’s influence over the Chancellor has been revealed

The economic disparities of modern Britain have been put on stark display, as official statistics revealed that the nation’s already-yawning wealth gap has widened still further over the past two years.

The richest 1 per cent of the population have as much wealth as the poorest 57 per cent combined, according to Office for National Statistics figures. The agency also found overall wealth inequality has increased since 2012, mainly thanks to the soaring price of housing in the South-east of England and London. » | Ben Chu, Economics Editor | Friday, December 18, 2015

Federal Reserve Announces First Rise in US Interest Rates Since 2006

Fed chair Janet Yellen signalled to Congress earlier this month
that the US economy was strong enough for the Fed to raise rates.

THE GUARDIAN: US central bank signals end to seven years of a monetary policy that began amid the worst financial crisis since the Great Depression

The Federal Reserve raised interest rates on Wednesday, ending an extraordinary period of government intervention in the financial markets that started at the height of the recession.

After holding its benchmark federal-funds rate near zero for seven years, the Fed increased rates a quarter-percentage point. The move signals the end of a monetary policy that began amid the worst financial crisis since the Great Depression.

In a statement the Fed said economic activity had been “expanding at a moderate pace. Household spending and business fixed investment have been increasing at solid rates in recent months, and the housing sector has improved further.”

Given the economic outlook, and “recognizing the time it takes for policy actions to affect future economic outcomes,” the Fed decided to raise the target range for the federal funds rate a quarter point, the first such rise in close to a decade.

The central bank signalled more increases to come “with gradual adjustments in the stance of monetary policy” and argued that “economic activity will continue to expand at a moderate pace and labor market indicators will continue to strengthen.” » | Dominic Rushe in New York and Jana Kasperkevic in Washington | Wednesday, December 16, 2015

US Federal Reserve Raises Interest Rates for First Time Since 2006

'Saudis Playing Dangerous Game As Oil Prices Plunge'

The Russian economy, which is heavily reliant on oil prices, is bearing the brunt of the low oil prices. For more on the falling oil and what it means for the Russian and Saudi economies – RT is joined by Michael Klare, an expert on natural resources, and author of 'Resource Wars, Blood and Oil'

Russia Plans $40 a Barrel Oil for Next Seven Years as Saudi Showdown Intensifies

THE TELEGRAPH: 'We will live in a different reality,' said a top Kremlin official. The message is aimed squarely at Saudi Arabia in a war for market share

Russia is battening down the hatches for a Biblical collapse in oil revenues, warning that crude prices could stay as low as $40 a barrel for another seven years.

Maxim Oreshkin, the deputy finance minister, said the country is drawing up plans based on a price band fluctuating between $40 to $60 as far out as 2022, a scenario that would have devastating implications for Opec.

It would also spell disaster for the North Sea producers, Brazil’s off-shore projects, and heavily indebted Western producers. “We will live in a different reality,” he told a breakfast forum hosted by Russian newspaper Vedomosti.

The cold blast from Moscow came as US crude plunged to $35.56, pummelled by continuing fall-out from the acrimonious Organisaton of Petrol Exporting Countries meeting last week. Record short positions by hedge funds have amplified the effect.

Bank of America said there was now the risk of “full-blown price war” within Opec itself as Saudi Arabia and Iran fight out a bitter strategic rivalry through the oil market. » | Ambrose Evans-Pritchard | Friday, December 11, 2015

Gulf States to Start Taxing People to Make Up for Oil Revenue Losses

People in the oil-rich Gulf monarchies have enjoyed lavish welfare and near-zero taxes for decades. But with the collapse of oil prices, governments no longer seem able to afford that.

Cadbury Owner Paid No UK Corporation Tax Last Year

THE GUARDIAN: Mondelez was able to pay no UK corporation tax as a result of a Channel Islands-based bond, despite Cadbury making £96.5m profit in 2014

Mondelez, which owns Cadbury, is facing controversy over its tax arrangements after it was reported that it had not paid UK corporation tax last year.

An investigation by the Sunday Times found the company was wiping out Cadbury’s bills using interest payments on an unsecured debt, which is listed as a bond on the Channel Islands’ stock exchange. The interest paid on the loan can be offset as a loss against gains made elsewhere in the company.

The arrangement, which is legal, meant Mondelez was able to pay no UK corporation tax despite accounts showing that Cadbury UK, its subsidiary, made profits of £96.5m in 2014 and £83.6m in 2013.

Margaret Hodge, chairwoman of the Commons all-party group on responsible tax, told the Sunday Times: “Multinationals like this are deliberately exporting their profits with artificial company structures to avoid tax. The founders of Cadbury who set it up as an ethical company will be turning in their graves.” » | Hilary Osborne | Sunday, December 6, 2015

Finland Is Considering Giving Every Citizen €800 a Month

Finnish Prime Minister Juha Sipilä

THE SUNDAY TELEGRAPH: Proposals for a national basic income are intended to simplify the social security system and encourage more unemployed people to take on temporary work

Authorities in Finland are considering giving every citizen a tax-free payout of €800 (£576) each month.

Under proposals being draw up by the Finnish Social Insurance Institution (Kela), this national basic income would replace all other benefit payments, and would be paid to all adults regardless of whether or not they receive any other income.

Unemployment in Finland is currently at record levels, and the basic income is intended to encourage more people back to work. At present, many unemployed people would be worse off if they took on low-paid temporary jobs due to loss of welfare payments. » | Adam Boult | Sunday, December 6, 2015

IMF to Make Chinese Yuan Reserve Currency in Historic Move

THE SUNDAY TELEGRAPH: Renminbi will join basket of elite currencies including dollar, pound, euro and yen

The International Monetary Fund is to give the yuan a historic vote of confidence on Monday when it includes the Chinese currency in its elite club of major currencies.

The yuan, also known as the renminbi, is widely expected to be added to the IMF’s group of international reserve currencies after an IMF meeting held by its managing director Christine Lagarde.

It comes after lengthy efforts by Chinese officials to legitimise the yuan, which critics say has been kept artificially cheap to artificially boost exports in the world’s second-largest economy.

China has lobbied hard for the currency to be included in the list, which at present is made up of just the dollar, the euro, the pound and the Japanese yen. The list has not been altered since 2000, when the euro replace[d] the franc and deutschmark. Read on and comment » | James Titcomb | Sunday, November 29, 2015

Angela Merkel Is Destroying Europe (2013)

Happy Thanksgiving!

I should like to take this opportunity to wish our American visitors, followers, and Twitter followers VERY HAPPY THANKSGIVING.

QE Has Paved the Way for a New Financial Crisis, Warn Germany's 'Wise Men"

THE TELEGRAPH: Council of Economic Experts says low interest rates pose risk for financial stability, and call on the ECB to end stimulus measures

The European Central Bank must end its unprecedented stimulus measures to prevent a new financial crisis from erupting in the eurozone, Germany's top economic advisers have warned.

Berlin's Council of Economic Experts - known as the country's five "wise men" - said the ECB must consider tapering its bond-buying measures early to avoid dangerous imbalances from building up in the bloc.

The Council's annual report delivered a scathing verdict on the ECB's recent measures and the perils of record low interest rates.

"Monetary policy is leading to a build-up of risks to financial stability which could pave the way for a new financial crisis," they said.

"Persistently low interest rates erode the earnings of banks and life insurance companies, and raise the appetite for taking risks. It is important to avoid delaying an exit from the low interest rate environment for too long." » | Mehreen Khan | Wednesday, November 11, 2015

Armistice Day: Nation Remembers War Dead

BBC: A two-minute silence has been observed across the UK to remember the nation's war dead on Armistice Day.

The silence began at the 11th hour of the 11th day of the 11th month - the time in 1918 when the guns fell silent along the Western Front in Europe.

War memorials, offices, schools, town halls, and churches all hosted events.

The Princess Royal was at the National Memorial Arboretum in Staffordshire, while veterans and serving personnel laid wreaths at the Cenotaph in London.

Armistice Day follows similar ceremonies on Remembrance Sunday to pay tribute to all those who died in World Wars One and Two and in every conflict since. (+ BBC video) » | Wednesday, November 11, 2015

43 Millionen Europäer haben nicht genug zu essen

KURIER: Ein Report untersuchte humanitäre Folgen der Wirtschaftskrise.

43 Millionen Europäer haben nicht genug zu essen. Immer mehr Menschen am Kontinent sind auf Hilfe angewiesen, 120 Millionen Europäer sind per Definition armutsgefährdet. Das geht aus einem am Donnerstag in Rom veröffentlichten Report der Internationalen Föderation der Rotkreuz- und Rothalbmondgesellschaften hervor, die sich unter anderem auf Eurostat-Zahlen beruft. Die Studie untersuchte die humanitären Auswirkungen der Wirtschaftskrise. » | APA / la | Freitag, 11. Oktober 2013

In Memory of the Fallen: Remembrance Sunday 2015

Remembering those who perished for our liberty; in gratitude for their sacrifice.

On The Streets Of The Greek Financial Crisis

Next Stop Grexit?

How the Price of Oil Is Set – Video Explainer