Daily Digest

Daily Digest 2/15 - Record ECB Funding For French Banks, Eurozone Greece Meeting Called Off, Cost Of Living Rising Dramatically

Wednesday, February 15, 2012, 10:50 AM
  • 'True' UK unemployment is 6.3m, says TUC
  • Hungary to give up flat tax as part of new deal with IMF
  • LA school board mulls $557M in budget cuts
  • Obama stresses investment in sustainable growth
  • Record ECB funding for French banks
  • Senate budget includes nearly 60 percent cut for USF
  • Charter school fines students $5 for detention
  • Eurozone meeting on Greece called off
  • Geithner Says ‘Modest’ Tax Increases Better Than Deeper Cuts
  • Slovak Growth Slowdown to Cut Tax Revenue by 140 Million Euros
  • Cost of living: 'You have to cut back everywhere'
  • U.S. Import Prices Climbed 0.3% in January on Higher Costs for Autos, Fuel
  • Fewer Americans Have Employer-Based Health Insurance
  • Williams: Fed must keep policy throttle 'wide open'

Follow our steps to prepare for a world after peak oil, such as how to store & filter water

Economy

'True' UK unemployment is 6.3m, says TUC

The true state of British unemployment is more than double its current level at 6.3 million people, if alternative measures including adults stuck in part-time work are used, according to research published on Tuesday.The TUC, the umbrella body for UK trade unions, said the total is swelled beyond the official figure of 2.68 million if new categories such as underemployed adults are included. Britain bases its jobless data on a widely used formula that defines an adult as unemployed if they are out of work and have actively sought a new post over the past month.

Hungary to give up flat tax as part of new deal with IMF

Hungary will have to give up on its flat tax to sign a new deal with the International Monetary Fund (IMF), according to local newspaper Nepszabadsag, quoting government sources. Hungary, like Romania, currently has a 16 percent flat tax on income, but must change taxation policy to qualify for a planned EUR 20 billion deal with the EU and the IMF.

LA school board mulls $557M in budget cuts

The board on Tuesday will consider a preliminary $6 billion operational budget for 2012-13 that calls for $557 million in cuts, which include the elimination of the district's adult education, pre-school and elementary arts programs. The board also is considering placing a temporary parcel tax initiative on the November ballot that would raise $200 million to $300 million to help close the deficit.

Obama stresses investment in sustainable growth

Obama said the administration seeks to cut the deficit by 4 trillion dollars over the next decade in a bid to put the nation on a course to a level of deficits below 3 percent of GDP.

Record ECB funding for French banks

French banks tapped the European Central Bank in December for a record €218.2 billion in loans, in a sign the sector piled in to the ECB's first offer of ultra-cheap three-year funds.

The Bank of France loaned the banking sector €218.2 billion in December, up from €166.6 billion in November, according to the French central bank's balance sheet. The sum topped the previous record of €215.3 billion registered in December 2008 at the height of the 2008-2009 financial crisis, figures from Thomson Reuters Datastream showed.

Senate budget includes nearly 60 percent cut for USF (Florida)

The new Florida Polytechnic would be the only university spared from cuts in the Senate plan. For USF, the cuts would amount to a 58 percent funding reduction, according to a university analysis. By comparison, the University of Florida would be cut by 26 percent and Florida State University by 22 percent, according to USF. The House, which passed its budget last week, is recommending a nearly 9 percent cut.

Charter school fines students $5 for detention (Illinois...Video)

"We wonder how they run a 19-school network if they have to balance the budget on the backs of low income families like that," said Julie Woestehoff of Parents United for Responsible Education.

The group called Voices of Youth in Chicago Education claim Noble Charter Schools collects thousands of dollars each year in disciplinary fines from students and families, many of them from low-income homes. With other charter schools working to adopt the same policy the group wants to put an end to these strict rules.

Eurozone meeting on Greece called off

The head of the Eurogroup, a gathering of eurozone finance ministers, says he has canceled a meeting on Greece's bailout planned for Wednesday as Athens did not fulfill all the demands.

Jean-Claude Juncker, who is also prime minister of Luxembourg, says the Eurogroup was still missing information from Athens on how it plans to save promised €325 million ($428 million).

He says he also did not receive assurances from the leaders of the two main Greek parties that they will implement the program even after elections expected for April.

Geithner Says ‘Modest’ Tax Increases Better Than Deeper Cuts

Reducing the U.S. budget deficit over the next decade without raising taxes would require damaging cuts to Medicare benefits and national security, Geithner said in testimony today before the Senate Finance Committee. In the budget plan released yesterday, Obama called for $1.4 trillion in fresh revenue from Americans at the top of the income scale, including higher taxes on wages and investments and limits on tax breaks for retirement savings and health insurance.

Slovak Growth Slowdown to Cut Tax Revenue by 140 Million Euros

Slovakia will probably collect 140 million euros ($184.8 million) less in taxes than planned this year as economic growth in the eastern euro-area member is set to fall short of projections, Finance Minister Ivan Miklos said.

Cost of living: 'You have to cut back everywhere' (UK Video)

The rising cost of living has slowed to 3.6%, down from 4.2% in December, according to the latest figures from the Consumer Prices Index. However prices are increasing at almost twice the rate that wages are, and at a much faster rate than people, such as pensioners, can hope to earn interest on their savings. Jennifer Hewitt from Liverpool, told the BBC that her family have been forced to tighten their belts in as many ways as possible.

"You may not have a holiday, you've got a much older car and you're looking around for lower-cost things and food."

U.S. Import Prices Climbed 0.3% in January on Higher Costs for Autos, Fuel

Compared with a year earlier, import prices rose 7.1 percent, today’s report showed, compared with an 8.5 percent increase in the 12 months ended in December.

Fewer Americans Have Employer-Based Health Insurance

Fewer Americans got their health insurance from an employer in 2011 (44.6%) than in 2010 (45.8%), continuing the downward trend Gallup and Healthways have documented since 2008. As employer-based health insurance has declined, the percentage of Americans who are uninsured has increased, rising to 17.1% this year, the highest seen since 2008.

Williams: Fed must keep policy throttle 'wide open'

The U.S. Federal Reserve should do all it can to reduce very high unemployment and bring inflation back up to more desirable levels, a top Fed official said on Monday.

"It's vital that we keep the monetary policy throttle wide open," John Williams, president of the San Francisco Federal Reserve Bank, told a group of students and professors at Claremont McKenna College.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

4 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4239
Bill Hicks's picture
Bill Hicks
Status: Bronze Member (Offline)
Joined: Jul 3 2011
Posts: 34
There's No Tomorrow - Outstanding Animated Peak Oil Movie

 Brand new--just released this week.  Everyone should watch this.

 http://www.youtube.com/watch?feature=player_embedded&v=VOMWzjrRiBg

 

phecksel's picture
phecksel
Status: Silver Member (Offline)
Joined: May 24 2010
Posts: 204
Bill, EXCELLENT find

Bill,

EXCELLENT find

heffe's picture
heffe
Status: Bronze Member (Offline)
Joined: Dec 26 2009
Posts: 95
There's no tomorrow video
Bill Hicks wrote:

 Brand new--just released this week.  Everyone should watch this.

 http://www.youtube.com/watch?feature=player_embedded&v=VOMWzjrRiBg 

 

That was an excellent video, thanks for sharing. For me, it demonstrated why the resource based economic model will arise out of necessity, and why future generations will look to our 'free markets' 'capitalism' 'monetary market systems' as the most bizarre thought delusion in all human history. We knowingly destroyed the planet in three generations, all due to our belief that non-monetary market economic models are impossible. I wish more peak oil video's would address how contemporary economic systems fail compared to alternatives.

Some key points of Resource Based Economics

-Carrying capacity of the Earth, land and resources is top priority.

-Each community achieves peak sustainability, and peak resilience through local food production, local energy extraction, local waste handling, and local production of goods.

-Access is provided without monetary exchange, as monetary market systems (regardless of fractional reserve banking) require growth to provide access to resources. A theory called the Four Fold effect posits that access to resources can increase by four times while consumption of resources decreases by a factor of four. This is because monetary market systems require restricted access, along with maintainence of artificial scarcity, to enable the distributive systems of buying and selling. 

This period of time will eventually be regarded as the 'religion of capitalistic certainty', as the degree to which the majority of people hold faith in 'free market economics' is beyond religious fervor. It is so ingrained within people's limited set of options that considering alternatives would be like heresy in ancient times. Hopefully more will wake up, learn about resource based economics, and get involved with their communities.

 

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