Tuesday, November 4, 2014

Japan's quantitative easing A bigger bazooka - Economist

http://www.economist.com/blogs/banyan/2014/10/japans-quantitative-easing?fsrc=nlw%7Cnewe%7C3-11-2014%7C

A bigger bazooka

Oct 31st 2014, 17:11 BY T.B. | TOKYO

THE riposte to doubts about Abenomics, the three-part plan of Shinzo Abe, Japan’s prime minister, to shake the country from its economic torpor, is more of the same, and a lot more. On October 31st the Bank of Japan (BoJ) stunned the financial markets by unexpectedly expanding its programme of quantitative easing. The bank’s existing measures, a “different dimension” of easing from past efforts, were already daringly bold. Now it will swell Japan’s monetary base at an even faster pace, by around ¥80 trillion ($712 billion) each year, up from ¥60 trillion-70 trillion currently. To do so, it will hoover up still larger quantities of Japanese government bonds (JGBs). This additional step, said Haruhiko Kuroda, the governor of the BoJ, “shows our unwavering determination to end deflation”.
The bank’s action is also an admission of partial failure thus far. Its bond-buying has succeeded in sparking some inflation, yet its goal of achieving price rises of 2% a year by around April 2015 remains a distant possibility. Along with the government, it badly underestimated the dampening effect of a hike in the consumption tax in April this year, which caused the economy to shrink by 1.7% in the second quarter. Because of faltering consumer and corporate demand, and falling oil prices, inflation is now heading in the wrong direction, and may dip beneath 1%.

 
In recent weeks, economists had started to question Mr Kuroda’s oft-stated commitment to banishing Japan’s entrenched deflationary psychology. They suggested that the bank’s formerly conservative mindset might even be returning. Mr Kuroda’s predecessor, Masaaki Shirakawa, pursued monetary easing only half-heartedly, and achieved little. Meanwhile, Mr Kuroda had sought to stealthily extend the deadline for exiting deflation. That did little to reassure that Abenomics was on track in spite of stalled growth and sluggish inflation. Upon announcing the additional easing, Mr Kuroda admitted that matters had reached a “critical point”, as the bank’s efforts were losing momentum.
Now a fresh round of no-holds-barred QE will immediately boost Mr Abe’s economic plan. The Nikkei stock index—a vital gauge of success for the government—rose to its highest level in seven years on the news. The yen lurched further downwards, which will help import inflation. In addition to the tidings from the central bank, there was still more sugar on offer for equity markets. The Government Pension Investment Fund (GPIF), the world's largest, said it would slash its holdings of government bonds from 60% to 35% in order to buy more shares. The strength of the co-ordination between the government, the BoJ and the ministry of labour, health and welfare, which oversees the GPIF, surprised observers. After the GPIF’s changes, most economists had not expected further monetary easing until 2015.
The BoJ’s action this week also took markets aback because in recent public appearances Mr Kuroda had stuck to a bullish economic outlook. Yet on October 31st the BoJ halved its forecast for economic growth for the 2014 fiscal year to 0.5%. The bank also made its timeframe for achieving 2% inflation open-ended, removing its two-year deadline. Nonetheless, following the additional easing, the central bank still expects to meet its inflation target in 2015. As well as buying an additional ¥30 trillion of JGBs a year, the BoJ will also purchase more risky assets in the form of exchange-traded funds and investment trusts in Japanese property.
A motivation for Mr Kuroda—in addition to visibly slowing inflation and weak growth—may have been an intensifying political debate over whether or not Mr Abe should again raise the unpopular consumption tax from 8% to 10% in 2015. The BoJ is strongly in favour of a second hike in order to repair Japan’s stretched public finances. More monetary easing should encourage Mr Abe to press ahead.
But this latest round of QE is not without its detractors. In April 2013 the BoJ’s nine-strong policy board voted unanimously in favour of its radical new monetary drive, this time it revealed a rare split. Four members voted against the expansion of monetary easing, which came just two days after America’s Federal Reserve ended its third round of QE. It is unclear whether or not the dissenters disagreed with the extra stimulus itself, or merely with its timing. This week’s further easing will intensify the worries around the policy announced last spring. Chief among these is that QE will be hard to exit without alarming the bond market. Yet for the time being, Mr Kuroda is waging a more dogged fight against deflation. The prospect of Japanese “tapering” is ever more distant.

Monday, November 3, 2014

Facebook sets up 'dark web' link to access network via Tor - BBC NEWS

http://www.bbc.com/news/technology-29879851

3 November 2014 Last updated at 13:58


Facebook sets up 'dark web' link to access network via Tor

By Dave LeeTechnology reporter, BBC News
Facebook's Tor support means users' traffic remains in the anonymising network

Facebook has created the ability for users to connect directly to the social network via anonymising "dark web" service Tor.
While it was already possible to access Facebook via Tor, the new set-up means all data is encrypted and Tor users are not mistaken for hacked accounts.
Users could access the site "without losing the cryptographic protections" of Tor, Facebook said.
It may appeal to people in places where the network is blocked.
China, Iran, North Korea and Cuba are among countries that have attempted to prevent access to the site.
Facebook is the first Silicon Valley giant to provide official support for Tor, a network built to allow people to visit web pages without being tracked and to publish sites whose contents would not show up in search engines.
Facebook's move would prove popular among those who wanted to stop their location and browsing habits from being tracked, said Dr Steven Murdoch, from University College London, who was consulted by Facebook for the project.
He explained users would still need to log-in, using real-name credentials, to access the site.
He told the BBC: "It's quite hard to use a social network completely anonymously, it somewhat defeats the point, unless you're just reading information.
"But just because you want to tell Facebook your name, doesn't mean they should be able to find out your location and your browsing habits."
Users will still need to log-in to use the site
The crucial change is the new Tor service - accessed through a Tor browser at https://facebookcorewwwi.onion/ - means all communication remains in the anonymous Tor network. Previously, some traffic would leave the closed network and access the open internet, potentially exposing a user's location and other information.
Dr Murdoch dismissed suggestions the move could anger governments who regularly approached Facebook with requests to hand over user information.
"It's not so much protecting people from governments," said Dr Murdoch, "but protecting from people who are spying on communications - that could be anyone from criminals to marketers."
Facebook, along with other major web companies, is currently pushing for permission to be more transparent over government requests it receives.
Security blockage
It has been possible to access Facebook through Tor for some time, albeit with some frustrations.
Tor is a network that anonymises users. One of the key ways it does this is by routing internet traffic through several locations - making it hard to track down where the user is browsing from.
But when accessing Facebook, this causes problems. One of the site's security measures is that if a user tries to log-in from an unexpected location, it will flag this as evidence the account has possibly been compromised.
Tor can be used to access Facebook in countries such as China, where the network is blocked
Of course, it could just mean that a user has changed location - holidaymakers often find they must go through additional security steps, such as naming people in pictures, before being able to log-in while abroad.
"[Tor's] design means that from the perspective of our systems a person who appears to be connecting from Australia at one moment may the next appear to be in Sweden or Canada," explained Facebook engineer Alec Muffett, who has led the site's Tor efforts, in a blog post.
"In other contexts such behaviour might suggest that a hacked account is being accessed through a 'botnet', but for Tor this is normal."
It meant accounts were being wrongly locked out. Other problems, such as fonts not displaying correctly, marred Facebook use on Tor.
What is Tor?
Tor is a special part of the internet that requires software, known as the Tor Browser bundle, to access it.
The name is an acronym for The Onion Router - just as there are many layers to the vegetable, there are many layers of encryption on the network.
It was originally designed by the US Naval Research Laboratory, and continues to receive funding from the US State Department.
It attempts to hide a person's location and identity by sending data across the internet via a very circuitous route involving several "nodes" - which, in this context, means using volunteers' PCs and computer servers as connection points.
Encryption applied at each hop along this route makes it very hard to connect a person to any particular activity.
To the website that ultimately receives the request, it appears as if the data traffic comes from the last computer in the chain - known as an "exit relay" - rather than the person responsible.
Tor hides a user's identity by routing their traffic through a series of other computers
As well as allowing users to visit normal website anonymously, it can also be used to host hidden sites, which use the .onion suffix.
Tor's users include the military, law enforcement officers and journalists - who use it as a way of communicating with whistle-blowers - as well as members of the public who wish to keep their browser activity secret.
But it has also been associated with illegal activity, allowing people to visit sites offering illegal drugs for sale and access to child abuse images, which do not show up in normal search engine results and would not be available to those who did not know where to look.
Follow Dave Lee on Twitter @DaveLeeBBC

Sunday, November 2, 2014

Private Space Industry Faces Questions After 2 Crashes - Fortune Magazine

http://time.com/3552499/virgin-galactic-crash-orbital-sciences-antares/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

    

“Space is hard. And today was a tough day"


It’s been a rough week for the private space industry. On Friday, Virgin Galactic’s SpaceShip Two crashed during a flight test in the Mojave Desert, killing one and seriously injuring another. On Tuesday, an unmanned Orbital Sciences Antares rocket exploded six seconds after lift-off in Virginia.
The back-to-back accidents raise inevitable questions about the safety and reliability of the emerging private space industry. Will space tourists and companies that want to put cargo into orbit take the risk?
“Gut reaction, this is a major setback,” said James Pura, president of Space Frontier Foundation, a non-profit that advocates more space exploration. “A lot of our hopes and dreams in the private commercial space industry lie in the success of the leading companies, and Virgin Galactic is one of those.”
The private space industry is receiving a huge influx of investment and attention. Elon Musk’s Space X, for example, has a number of contracts to deliver satellites and cargo into space. Another company, Planetary Sciences, backed by billionaires like Google’s Larry Page and Eric Schmidt, plans to mine asteroids. Meanwhile, Blue Origin, founded by Amazon CEO Jeff Bezos, got started in 2010 as a space tourism business, but has since detoured into making rocket engines.
Virgin Galactic, the space tourism start-up founded by Virgin mogul Richard Branson, had plans to take its first commercial trip 62 miles into the stratosphere by the end of the year. Over 700 customers have paid $250,000 to take a trip.
But it may be difficult to meet that goal after today’s accident, in which a test flight experienced what the company described as an “in-flight anomaly” that sent the craft hurtling to the ground. At least one of the test pilots escaped by parachute.
“Space is hard. And today was a tough day,” Virgin Galactic CEO George Whitesides said.
Earlier in the week, Orbital Sciences, a company that carries customer payloads into space, suffered a huge setback when its launch went haywire. A rocket it launched in Virginia had to be destroyed just seconds after taking off.
Shares in Orbital Sciences  ORB  plummeted over 16% after the failure.
“It is far too early to know the details of what happened,” Frank Culbertson, Orbital’s executive vice president and general manager of its advanced programs group, said in a statement. “As we begin to gather information, our primary concern lies with the ongoing safety and security of those involved in our response and recovery operations.
“From a financial standpoint it will take some time to assess the precise impacts; however, I can tell you that Orbital’s view for 2014 remains unchanged,” Garrett Pierce, Orbital Sciences’ vice chairman and CFO, said on a conference call with analysts and investors.
Of course, private space companies aren’t the only to suffer setbacks. NASA has had its own high-profile mishaps over the years, including two Space Shuttle accidents. Whether governmental efforts are any more risky than private launches is unclear. But one thing is certain.
“Space flight is inherently risky and we as humans are curious about space and always will be,” Pura, the foundation president, said. “Those brave pioneers are turning science fiction into reality. Our heart goes out to those brave pioneers at this time.”

Saturday, November 1, 2014

9 Things the Smartest Leaders Do - TIME

http://time.com/3507117/9-things-smart-leaders-do/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Oct. 21, 2014
    

These simple strategies create organizations that are flexible, resilient, and attractive to top talent



In previous posts, I’ve described what smart bosses believe, what smart bosses know about people, and the words that smart bosses never say. This piece describes the specific strategies I’ve observed CEOs apply inside the most consistently successful companies:

1. They encourage diversity of thought.

Smart CEOs build organizations in which a diversity of opinion and background produce alternative approaches to solving problems and building opportunity.
Average CEOs build organizations in which everyone looks and thinks the same way. This reduces conflict but results in a brittle organization that can’t adapt.

2. They sacrifice their cash cows.

Smart CEOs realize that a successful product becomes obsolete even while it’s still selling well. As a result, they kill off and replace their most profitable products.
Average CEOs keep their cash cows alive even if it means that competitors will capture the next product generation.

3. They build symbiotic relationships.

Smart CEOs seek out situations in which customers and partners mutually benefit because everyone’s growth depends upon how well that she or he can cooperate.
Average CEOs think of business as a zero-sum game, where being a winner means that somebody else must be a loser, even if it’s a customer or partner.

4. They physically connect with employees.

Smart CEOs walk the halls, shake hands, and speak one-on-one with line employees, sincerely thanking them for their contributions.
Average CEOs send out pep-talk emails filled with biz-blab like “employees are our greatest resource.”

5. They encourage social interaction.

Smart CEOs encourage social activities with intergroup mingling. They want employees from sales, engineering, and finance (for instance) to know and like one another.
Average CEOs have management retreats in fancy resort hotels and give regular employees free passes to the local Six Flags park.

6. They foster hands-on community involvement.

Smart CEOs want employees to become involved in personally helping the local community deal with whatever problems exist.
Average CEOs run contests to see which manager can arm-twist the most employees into donating money to United Way.

7. They increase flexibility by dispersing power.

Smart CEOs push authority as far down the organizational chain as possible, so that those closest to a situation have the power to make the best decisions.
Average CEOs obsess about checks and balances so that nobody takes a risk without first getting approval from higher-ups.

8. They encourage informality.

Smart CEOs create collegelike work environments in which employees feel relaxed, as if they’re among friends and mentors.
Average CEOs create factorylike environments in which everyone feels like a cog in the corporate machine.

9. They keep job descriptions fluid.

Smart CEOs let individuals, teams, and organizations define their roles as necessary to accomplish the job at hand.

Average CEOs expend vast effort writing detailed job descriptions and defining how the “system” is supposed to work.

Friday, October 31, 2014

1 Trick to Remember Even the Most Boring Information - TIME

http://time.com/3549386/memory-trick/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

5:45 AM ET
    

If you're not curious, you should be


Facing the unpleasant task of having to commit some dull facts or figures to memory? Now you don’t have to be that person fumbling for their notes or clicking frantically through slides during an important presentation. To kick your ability to recall information into overdrive, try piquing your curiosity, a new study suggests.
People are better at learning and remembering information they’re genuinely interested in, but researchers have discovered that a state of curiosity has a kind of halo effect on other, incidental or unrelated information we’re exposed to at the same time.
An NPR article points out this principle is useful for teachers who want to engage students by framing a lesson as a story or riddle, but as it turns out, the idea also might benefit grown-ups in the workforce.

“I think there are some useful ideas that can come out of our study with regard to adult learning,” says Charan Ranganath, a psychology professor at the University of California, Davis and one of the study’s authors, although he does caution that this is speculative.

Thursday, October 30, 2014

How to Change the World—and Make Some Money Too - TIME

http://time.com/money/3449801/social-investing-millennials/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Oct. 1, 2014
    

Young adults flock to investments that promote social good. This was a hot topic at a big ideas festival over the weekend and is front and center with financial firms.

Social investing has come of age, driven by a new generation that is redefining the notion of acceptable returns. These new investors still want to make money, of course. But they are also insisting on measurable social good.
Millennials make up a big portion of this new breed, and their influence will only grow as they age and accumulate wealth. The total market for social investments is now around $500 billion and growing at 20% a year. As millennials’ earning power grows and they inherit $30 trillion over the next 30 years, investing for social good stands to attract trillions more.
POPULAR AMONG TIME SUBSCRIBERS
So what began in the 1980s as a passive movement to avoid the stocks of companies that sell things like tobacco and firearms has broadened into what is known as impact investing, a proactive campaign to funnel money into green technologies and social endeavors that produce measurable good. Clean energy and climate change are popular issues. But so is, say, reducing the recidivist rate of lawbreakers leaving prison.
Impact investing was a hot topic this weekend at The Nantucket Project, an annual ideas festival that aims to change the world. Jackie VanderBrug, an analyst at U.S. Trust, noted that 79% of millennials would be willing to take higher risks with their portfolio if they knew it would drive positive social change. Based on data from Merrill Lynch, that compares to about half of boomers with a social investing screen and even fewer of the oldest generation. VanderBrug also noted that women of all ages, an increasing economic force, tend to favor these strategies.
Speaking at the conference, Randy Komisar, a partner at the venture capital powerhouse Kleiner Perkins Caufield Byers and author of The Monk and the Riddle, said, “This generation is the most different of any since the 1960s.” He believes millennials are chipping away at previous generations’ affinity for growth and profits at any cost. Young people embrace the idea that you work not just for money but also for experience, satisfaction and joy.
Komisar noted the rise of B corporations like Patagonia and Ben and Jerry’s. These are for-profit enterprises that number 1,115 in 35 countries and 121 industries. Since 2007, the nonprofit B Lab has been certifying the formal mission of companies like these to place environment, community and employees on equal footing with profits. There are many more uncertified “Benefit” corporations. Since 2010, 41 states have passed or begun working on legislation giving socially conscious Benefit corporations special standing. Legally, they are held to a higher standard of community good, but they have cover from certain types of shareholder lawsuits.
Both types of B corporations acknowledge that their social mission gives them an important advantage hiring young adults, who in surveys show they place especially high value on the chance to make a social impact through work. “If your company offers something that’s more purposeful than just a job, younger generations are going to choose that every time,” Blake Jones, chief executive of Namasté Solar, a Boulder, Colo., solar-technology installer and B Corp. toldThe Wall Street Journal.
Industries that do not address the wider concerns of millennials will increasingly become marginalized. The financial analyst Meredith Whitney, who rose to prominence calling the subprime mortgage disaster, told the gathering in Nantucket that financial services firms have been among the slowest to consider sustainability issues—“and that’s why I think they are in trouble.”
Yet banks may be starting to come along. Bank of America clients have about $8 billion invested along sustainability lines, the bank says. And its Merrill Lynch arm has been a leading explorer of “green” bonds, which raise money for specific causes and pay investors a rate of return based on whether the funded programs hit certain measures of achievement.
Late last year, Merrill raised $13.5 million for New York State and Social Finance for a program to help formerly incarcerated individuals adjust to life outside prison. How well the bonds perform depends on employment and recidivism rates and other measures taken over five and a half years. The firm is now looking into a similar bond issue to fund programs for returning war veterans.
For now, green bonds are aimed at institutional investors, especially those charitable foundations willing to risk losses in their effort to change the world. The J.P.Morgan 2014 Impact Investor Surveyfound that about half of institutions investing this way are okay with below-average returns.

Young people saving for retirement and faced with a crumbling pension system can’t really afford the tradeoff, at least not on a large scale. That’s partly why they want their job or company to have a higher purpose. But ultimately some version of green bonds, perhaps with a more certain return, will be open to individuals for the simple reason that four out of five young adults want it that way.

Wednesday, October 29, 2014

Samsung’s Cheil Said to Plan Gauging Demand for $1.5 Billion IPO - Bloomberg News

http://www.bloomberg.com/news/2014-10-29/samsung-s-cheil-said-to-plan-gauging-demand-for-1-5-billion-ipo.html

By Fox Hu and Joyce Koh  Oct 29, 2014 3:48 PM ET  


Cheil Industries Inc., the de facto holding company of Samsung Group (005930), plans to start gauging demand next week for an initial public offering in South Korea, people with knowledge of the matter said.

The theme park operator’s share sale may raise about $1.5 billion, the people said, asking not to be identified because the information is private. The IPO would be the country’s biggest in more than four years, according to data compiled by Bloomberg.
Cheil’s offering will help the founding family of South Korea’s biggest conglomerate cover inheritance taxes and comply with tighter government limits on conglomerates. Since 72-year-old patriarch Lee Kun Hee was hospitalized in May, Samsung Group has announced the merger of shipbuilding and engineering affiliates and applied to take its network technology businessSamsung SDS Co. (018260) public.
Park Hyung Geun, a spokesman for Cheil, declined to comment on the IPO plan. Cheil applied in September for a listing on South Korea’s main bourse, without providing details such as the size of the offering.
Cheil, formerly known as Samsung Everland Inc., is an operator of zoos, golf courses and theCaribbean Bay, billed as one of the world’s largest water parks.

Customers stand in line to pay for their purchases inside an 8Seconds fashion store,...Read More
The company sits atop the Samsung Group through direct and indirect stakes in key affiliates including Samsung Electronics Co., the maker of Galaxy smartphones, and Samsung Life Insurance Co. It’s also central to the group’s succession planning because Lee’s only son, 46-year-old Lee Jae Yong, is the biggest shareholder with a 25 percent stake.
To contact the reporters on this story: Fox Hu in Hong Kong atfhu7@bloomberg.net; Joyce Koh in Singapore atjkoh38@bloomberg.net

Tuesday, October 28, 2014

Why Facebook Suddenly Wants to Handle Your Money - TIME

http://time.com/3542410/facebook-money/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Oct.,28, 2014  -  5:45 AM ET 
    
Mark Zuckerberg, chief executive officer of Facebook Inc., speaks during the Internet.org summit in New Delhi, India, on Thursday, Oct. 9, 2014.Udit Kulshrestha—Bloomberg/Getty Images

It's quickly becoming the biggest battle zone in tech


Facebook already handles your social life; now it wants to handle your money. Hacked screenshots released this month show a hidden payment option inside Facebook’s popular Messenger app, which is used by 200 million people around the globe. The feature—discovered by a Stanford computer science student snooping around existing code—would potentially let users send money to one another in a message using debit card information. Facebook hasn’t commented on the hack or when, if ever, it might activate the feature.
But, for the moment, a far more interesting question is why would Facebook consider going down this road at all. Behind Facebook’s foray into payments is a thrilling possibility. Could the world’s largest social network be gearing up for a future showdown with the world’s largest credit card companies? At stake is a potentially massive jackpot: the $40 billion to $50 billion a year (in the U.S. alone) that credit card-issuing banks make off the so-called interchange rate, i.e. the hefty transaction fee that merchants have to cough up whenever customers use credit cards.

Monday, October 27, 2014

China Week: Emissions, executions and broken dreams - BBC NEWS

http://www.bbc.com/news/world-asia-china-29751568

24 October 2014 Last updated at 08:50


China Week: Emissions, executions and broken dreams

Mr Obama and Mr Xi are due to meet in Beijing soon


It's a full two weeks until Chinese President Xi Jinping hosts US President Obama in Beijing, but the Chinese news agenda already feels full of Americans.
In Hong Kong, there's Kenny G with or without sax and umbrella, and in Beijing there's Facebook's Mark Zuckerberg launching a charm offensive in valiant Mandarin.
But even when China's not directly talking to or about Americans, it's thinking about them.
And for China's chief ideologues, a lot of energy goes into being "not the United States".

'Broken American Dream'

For example, this week saw a new twist in an arcane ideological story set rolling by Mr Xi.
At a forum for artists and writers earlier this month, he lavished praise on a young blogger called Zhou Xiaoping for his "positive energy". Mr Zhou was once an admirer of all things American but then "awakened from this nightmare" after reading about a man stabbed to death on an American street.
Now he believes instead in China's "grand era" and his energies are focused on writing anti-American essays with titles like "Nine Knockout Blows in America's Cold War Against China". He has also accused the US of deploying the internet and Hollywood to poison Chinese civilisation.
And this week, China's censors have joined in with their own version of the knockout blow, deleting the social media accounts of a blogger called Fang Zhouzi who attempted to dismantle Mr Zhou's narrative of the "broken American dream".

Money talks

The US and Japan dominate the Asian Development Bank, China believes
It's 70 years since the US-led global financial order was established at Bretton Woods. And now China is getting ready to challenge it.
July saw the announcement of the Brics bank which will include Brazil, Russia, India and South Africa.
This week, China followed up with a ceremony in the Great Hall of the People to launch the Asia Infrastructure Investment Bank (AIIB). Asia needs infrastructure, China has capital and expertise. And it sees the existing Manila-based Asian Development Bank as too subservient to the objectives of the United States and Japan.
Beijing suspects Washington has been discouraging governments from signing up to its new regional bank, uneasy that the AIIB will reflect China's priorities and undermine US leadership in the region.
Both the suspicion and the unease are probably justified. Infrastructure investment in Asia is something China is about to transform.

Beyond ideology

Coal-burning in China fell 1-2% in the first nine months of the year, Greenpeace said
Will the fall in coal-burning lead to better air conditions across China?
Away from the things that divide, a story which everyone can celebrate.
The environmental group Greenpeace says that in the first three quarters of 2014, China's coal burning is 1-2% lower than a year earlier.
This contrasts with the 5-10% annual growth rate in coal consumption seen since the early years of the century.
China is the world's largest consumer of coal, its economy is still growing at over 7% and its power consumption is also growing, but crucially, it's growing more slowly and is going to feed high-tech manufacturing and the service sector rather than concrete and steel.
Greenpeace concluded that: "Economic growth in China is no longer leading automatically to higher coal consumption and CO2 emissions."
This is a glimmer of light in the smog for everyone on the planet and particularly for China's own citizens, who increasingly see the urban air quality index as a measure of government competence that transcends politics or ideology.
It's simply life and death.

Execution in numbers

Earlier this month, a court handed down death sentences to two members of a Chinese cult
Talking about life and death, China never releases figures for the number of citizens it executes annually but US-based rights group Dui Hua has estimated that approximately 2,400 people in China were executed last year.
This is far fewer than in the 1980s and 90s, perhaps partly because all death sentences now have to go to the Supreme People's Court for review.
But Dui Hua said there was unlikely to be a dramatic decline in numbers in 2014 because of the use of capital punishment in anti-terrorism campaigns in Xinjiang and the anti-corruption campaign nationwide.
(Whether executing people has any deterrent effect in relation to either terrorist offences or corruption is open to debate, of course.)

Deterring animal torture

A man rides alongside a camel and a horse on a busy street
Pictures of a mutilated camel in Fuzhou went viral this week (Warning: graphic content), provoking a discussion about whether beggars were deliberately mutilating animals to trigger sympathy donations from the public.
The men in the pictures claimed that they had rescued their camel after it had been run over by a train. But police said they may have hacked off the camel's hooves themselves.
And animal rights activists said people who give such beggars money were rewarding animal torture and that until China introduced meaningful legislation protecting animal rights, there was little anyone could do to prevent such atrocities in future.
So if you meet these men and this camel, or any other beggar with a mutilated animal, do not perpetuate the problem by handing over cash.
The challenge is finding a better way to help.

Sunday, October 26, 2014

Twenty-four European banks fail EBA stress test - BBC NEWS

http://www.bbc.com/news/business-29777589

26 October 2014 Last updated at 11:38


Twenty-four European banks fail EBA stress test

Twenty-four European banks have failed stress tests of their finances, the European Banking Authority has announced.
The banks now have nine months to shore up their finances or risk being shut down.
They include nine Italian banks, three Greek banks and three Cypriot banks.
The health check was carried out on 123 EU banks by the EBA to determine whether they could withstand another financial crisis.
The review was based on the banks' financial health at the end of 2013.
Many of them have taken measures to bolster their balance sheets in the meantime.
The worst affected was Italian bank Monte dei Paschi, which had a capital shortfall of €2.1bn (£1.65bn, $2.6bn).
'Robust' exercise
At the same time, the European Central Bank (ECB) carried out an overlapping survey of 130 banks.
The ECB said 25 banks had failed its test, but 12 of those had already taken remedial action.
The European Commission welcomed the results of the EBA and ECB assessments.
It said they had been "robust exercises, unprecedented in scale and among the most stringent worldwide".
"Yet there is no room for complacency," the Commission said in a statement.
"Rigorous and timely follow-up actions to the results of the exercises will be absolutely crucial," it added.
Analysts said the results of the tests were much as expected. "The first impression is that there are few surprises," said Max Anderl of UBS Global Asset Management.
"The document refers to many of the 'usual suspects', mainly in Greece, Portugal and Italy," he added.

Saturday, October 25, 2014

3 Questions to Ask When You Don’t Know What You Want to Do With Your Life - TIME

http://time.com/3510982/questions-dream-job-advice/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+timeblogs%2Fcurious_capitalist+%28TIME%3A+Business%29

Oct. 16, 2014
    

Sometimes your dreams aren't what you think they are



I started college as a musical theater major, but by the end of my freshman year, I knew I wasn’t supposed to have a career on stage. I dabbled in psychology before finding my calling in marketing.
A friend of mine, on the other hand, started her career as a marketer. But after picking up running, she’s in school to become a physical therapist. Another friend has been a software engineer by education and profession, and he recently transitioned into data science.
The thing we all had in common? At some point, we thought we had it all figured out—until we realized that our dream jobs weren’t our dream jobs anymore, and we had to start all over to determine how we wanted our career paths to look.
When you don’t know exactly what you want to do, planning for the future can feel totally overwhelming. But here are some of the questions we asked ourselves that helped not only point us in the right direction—but also plan for the future of our careers.

What Am I Really Passionate About—and Why?

When I first decided to change my major, I considered psychology, because I’m fascinated by the mind. The thing is, I’m not so fascinated by listening to people’s emotional problems, and when I did some further digging, it looked like a career in psychology probably meant becoming a counselor. After pinpointing what I loved about the mind—the ways our brains make connections, process information, and form memories—I realized that a career in marketing, which is all about understanding people’s motivations, would be a better fit.
Along similar lines, when my friend started running, she thought she wanted to become a fitness instructor, but realized that she wasn’t passionate about motivating people to get in shape. Instead, she was passionate about making the body work like a well-oiled machine, which led her to the more medically based physical therapy.
As you consider your next career move, you should think about what makes you excited to wake up every day—but don’t stop there. For every interest or passion, really try to pinpoint what about it gets you most excited. It’s also helpful to try out some things that will let you explore your interests a bit more—think volunteer projects, side hustles, and informational interviews. Pay attention to what moves you—and what you think might move you, but doesn’t. The goal is to dig until you reach the foundation of the passion. (If you need help with this step, The Muse’s five-day email based “Discover Your Passion” class can help.)

What Does My “Dream Job” Look Like?

Now, this doesn’t mean just the title or compensation—you should consider all facets of a job when thinking about your ideal career. For example, do you prefer a structured and heavily regulated environment, or an unstructured and creative environment? Do you want to wear a suit, uniform, or jeans to work every day? Do you want to work remotely, travel to different cities, or go to an office? Each of these questions significantly impacts the types of roles you’ll be looking at.
You’ll also want to consider what the role might look like in one year, three years, or even 10 years. One of my friends, for instance, is a Navy pilot (she flies helicopters on aircraft carriers!), and she’s at a critical junction in her career. She loves flying, and she loves the next three to five years of her path, which includes training others to fly. But, she’s concerned about her job when she reaches the 10-15 year mark, as advancement means that she’ll be on a ship for most months out of the year.
So, as you consider how you want to advance, take a look at what the career trajectory looks like. Will you stay focused in one specific skill or topic, or would you prefer to be more of a generalist? Will you need to at some point start managing others and give up the tasks of producing yourself? (This is especially important for creative professionals to consider.) Are promotions and pay increases based on experience, or do they require specific skills and credentials, like going back to school?
While you never really know how your role will evolve over time (or even what jobs might be available in the future!), it’s important to explore how the role tends to change as you advance.

How Does This Job Fit Into My Life?

As Rikki Rogers explains in her article, “Does Your Dream Job Fit Into Your Dream Life?” a job that makes you happy doesn’t always lead to a life that makes you happy. In her case, becoming a college writing professor would mean that she’d likely be living in a small town, thousands of miles away from her family, so she opted for a more versatile role in marketing communications.
The lesson: It’s key to look at your career choices in the context of the rest of your life—relationships, hobbies, family commitments, even things like fitness and spirituality. I actually put together a “life satisfaction spreadsheet” that ranks the top five things that made me a happy, healthy person, and allows me to weigh my satisfaction in those areas. It’s particularly helpful each time I consider a career move, allowing me to see how the change would affect me in all areas of my life.
Once you’ve answered the big-picture questions about your career, it’s time to put them into action. Again, it’s often helpful to test drive a career path before jumping in head first—here are five simple waysto do just that. Research what education and credentials you’ll need to advance, meet with people in the field to get their advice for breaking in, and ask for targeted assignments as you look to build your resume.

It’s impossible to plan for every step along the way, but asking yourself big-picture questions about what you want from a career can help you chart a path at any stage.

Friday, October 24, 2014

The Globalization of War - by Global Research

http://www.globalresearch.ca/the-globalization-of-war/5407662

The world is at the crossroads of the most serious crisis in modern history. The U.S. and its NATO allies have embarked on a military adventure, “a long war”, which threatens the future of humanity. This “war without borders” is intimately related to a worldwide process of economic restructuring, which has been conducive to the collapse of national economies and the impoverishment of large sectors of the World population.
The U.S. weapons producers are the recipients of  U.S. Department of Defense multibillion dollar procurement contracts for advanced weapons systems. In turn, “The Battle for Oil” in the Middle East and Central Asia directly serves the interests of the Anglo-American oil giants. The U.S. and its allies are “Beating the Drums of War” at the height of a worldwide economic depression.
The military deployment of US-NATO forces coupled with “non-conventional warfare” –including covert intelligence operations, economic sanctions and the thrust of “regime change”– is occurring simultaneously in several regions of the world. 
Central to an understanding of war, is the media campaign which grants it legitimacy in the eyes of public opinion. War has been provided with a humanitarian mandate under NATO’s “Responsibility to Protect” (R2P). The victims of U.S. led wars are presented as the perpetrators of war.  Civilians in Ukraine, Syria and Iraq are responsible for their own deaths.
Meanwhile,  the Commander in Chief of the largest military force on planet earth is presented as a global peace-maker. The granting of the Nobel “peace prize” in 2009 to President Barack Obama has become an integral part of the Pentagon’s propaganda machine. It provides a human face to the invaders, it demonizes those who oppose US military intervention.
The Nobel Committee says that President Obama has given the world  “hope for a better future”.   The prize is awarded for Obama’s “extraordinary efforts to strengthen international diplomacy and cooperation between peoples. The Committee has attached special importance to Obama’s vision of and work for a world without nuclear weapons.”
…His diplomacy is founded in the concept that those who are to lead the world must do so on the basis of values and attitudes that are shared by the majority of the world’s population. 1 (The Nobel Peace Prize for 2009: Barack H. Obama, Press Release, October 9, 2009)
Realities are turned upside down. “War is Peace”  said  George Orwell.  The media in chorus upholds war as a humanitarian endeavor. “Wars make us safer and richer” says the Washington Post.
The Big Lie becomes The Truth. In turn, upholding The Truth –through careful documentation and investigative analysis of the horrors of U.S. led wars– is casually categorized as “conspiracy theory”.
While Washington wages a “Global War on Terrorism” (GWOT), those who forcefully oppose America’s wars of aggression are branded as terrorists.  War becomes peace, a worthwhile “humanitarian undertaking”.  Peaceful dissent becomes heresy.
With unfolding events in Ukraine and the Middle East, humanity is at a dangerous crossroads.  At no time since the Cuban Missile Crisis has the World been closer to the unthinkable: a World War III scenario, a global military conflict involving the use of nuclear weapons.
The killing machine is deployed at a global level, within the framework of the unified combat command structure. It is routinely upheld by the institutions of government, the corporate media and the mandarins and intellectuals of The New World Order in Washington’s think tanks and strategic studies research institutes, as an unquestioned instrument of peace and global prosperity.
A culture of killing and violence has become imbedded in human consciousness.
War is broadly accepted as part of a societal process: The Homeland needs to be “defended” and protected.
“Legitimized violence” and extrajudicial killings directed against “terrorists” are upheld in western democracies, as necessary instruments of national security.
A “humanitarian war” is upheld by the so-called international community. It is not condemned as a criminal act. Its main architects are rewarded for their contribution to world peace.
Nuclear weapons are heralded by the US government as instruments of peace. The pre-emptive use of nuclear weapons is categorized as an act of “self-defense” which contributes to an illusive concept of “global security”. (see Chapter II).
The so-called “missile defense shield” or “Star Wars” initiative involving the first strike use of nuclear weapons has been developed globally in different regions of the world. The missile shield is largely directed against Russia, China, Iran and North Korea.
Meanwhile, in the context of unfolding events in Syria and Ukraine, there has been a breakdown of international diplomacy. Whereas a Neo-Nazi regime directly supported by the West has been installed in Kiev, the Russian Federation is now threatened by US-NATO with military action on its Western frontier. (See Chapter IX).
New Cold War?
While this renewed East-West confrontation has mistakenly been labelled a “New Cold War”, none of the safeguards of The Cold War era prevail. Russia has been excluded from the Group of Eight (G-8), which has reverted to the G-7 (Group of Seven Nations). Diplomacy has collapsed. There is no Cold War East-West dialogue between competing superpowers geared towards avoiding military confrontation. In turn, the United Nations Security Council has become a de facto mouthpiece of the U.S. State Department.
Moreover, nuclear weapons are no longer considered a “weapon of last resort” under The Cold War doctrine of “Mutual Assured Destruction” (MAD).  Nuclear weapons are heralded by the Pentagon as “harmless to the surrounding civilian population because the explosion is underground”. In 2002, the U.S. Senate gave the green light for the use of nuclear weapons in the conventional war theater.  Nukes are part of the “military toolbox” to be used alongside conventional weapons.
The “Communist threat” of The Cold War era has been replaced by the worldwide threat of “Islamic terrorism”. Whereas Russia and China have become capitalist “free market” economies, a first strike pre-emptive nuclear attack is nonetheless contemplated.
China and Russia are no longer considered to be “a threat to capitalism”.  Quite the opposite. What is at stake is economic and financial rivalry between competing capitalist powers. The China-Russia alliance under the Shanghai Cooperation Organization (SCO) constitutes a “competing capitalist block” which undermines U.S. economic hegemony.
In Asia, the U.S. has contributed under its “Pivot to Asia” to encouraging its Asia-Pacific allies including Japan, Australia, South Korea, The Philippines and Vietnam to threaten and isolate China as part of a process of “military encirclement” of China, which gained impetus in the late 1990s.
Meanwhile, war propaganda has become increasingly pervasive. War is upheld as a peace-making operation.
When war becomes peace, the world is turned upside down. Conceptualization is no longer possible. An inquisitorial social system emerges. (See Chapter X). The consensus is to wage war. People can longer think for themselves. They accept the authority and wisdom of the established social order.
An understanding of fundamental social and political events is replaced by a World of sheer fantasy, where “evil folks” are lurking. The objective of the “Global War on Terrorism” narrative –which has been fully endorsed by the US administration– has been to galvanize public support for a worldwide campaign against heresy.
Global Warfare
The Pentagon’s global military design is one of world conquest. The military deployment of US-NATO forces is occurring in several regions of the world simultaneously.
The concept of the “Long War” has characterized US military doctrine since the end of World War II. Worldwide militarization is part of a global economic agenda.
Militarization at the global level is instrumented through the U.S. military’s Unified Command structure: the entire planet is divided up into geographic Combatant Commands under the control of the Pentagon. U.S. Strategic Command (USSTRATCOM) Headquarters in Omaha, Nebraska plays a central role in coordinating military operations.
While surrounding and confronting Russia and China, new U.S. military bases have been set up with a view to establishing U.S. spheres of influence in every region of the World.  There has been a reinforcement of the six geographic commands including the creation in 2008 of United States Africa Command (AFRICOM).
As heralded by the Pentagon, AFRICOM becomes a “full-spectrum combatant command” responsible for what are described as “defense” and U.S. “national  security” operations “through focused, sustained engagement with partners in support of our shared security objectives”. AFRICOM’s area of jurisdiction extends to the entire “African continent, its island nations, and surrounding waters”. 2 US Africa Command, “What We Do”,
This US militarization of Africa supports the concurrent economic conquest of the continent, the pillage of its natural resources, the acquisition of its extensive oil and gas reserves, etc.
AFRICOM is an instrument of a U.S. led neocolonial project in alliance with the United Kingdom which consists in expanding the Anglo-American sphere of influence specifically in Central Africa, Francophone West Africa and North Africa largely at the expense of France.
While the US has military bases and/or facilities in more than 150 countries, with 160,000 active-duty personnel, the construction of new military bases is envisaged in Latin America including Colombia on the immediate border of Venezuela.
Military aid to Israel has increased. The Obama presidency has expressed its unbending support for Israel and the Israeli military, which is slated to play a key role in US-NATO led wars in the Middle East. The unspoken agenda is outright elimination of Palestine and the instatement  of “Greater Israel”.
Michel Chossudovsky, The Globalization of War. America’s Long War against Humanity, excerpt from forthcoming book, Global Research Publishers, 2014.  Expected date of publication November-December 2014.