February 25, 2013 archive

AA1

UK’s credit rating downgraded from AAA to AA1 by Moody’s

Press Association, The Guardian

Friday 22 February 2013 18.05 EST

The agency warned that “subdued” growth prospects and a “high and rising debt burden” were weighing on the economy. But Osborne said the loss of the gold-plated status did not mean the government should change course.

“Tonight we have a stark reminder of the debt problems facing our country – and the clearest possible warning to anyone who thinks we can run away from dealing with those problems,” he said.

“Far from weakening our resolve to deliver our economic recovery plan, this decision redoubles it.

Osborne humiliated as UK loses AAA credit rating

By George Eaton, New Statesman

Published 22 February 2013 22:50

Back in February 2010, a few months before he entered the Treasury, George Osborne declared: “Our first benchmark is to cut the deficit more quickly to safeguard Britain’s credit rating. I know that we are taking a political gamble to set this up as a measure of success.” A gamble it was and how it has backfired on the Chancellor. Tonight, Moody’s became the first rating agency to strip the UK of its AAA credit rating (downgrading it to AA1), citing the “continuing weakness” in the UK’s growth outlook and its “high and rising debt burden”.

For Osborne, who chose to make our credit rating the ultimate metric of economic stability, it is a humiliating moment. Not my words, but his. During one of his rhetorical assaults against Labour in August 2009, he warned: “Britain faces the humiliating possibility of losing its international credit rating”. Rarely before or after becoming Chancellor, did Osborne miss an opportunity to remind us just how important he thought the retention of our AAA rating was.



By Osborne’s own logic, then, his deficit plan is no longer credible.



The economic consequences of the downgrade are unlikely to be significant. France and the US, for instance, have seen no rise in their borrowing costs since losing their AAA ratings (in fact, yields on US and French bonds have fallen). All the evidence we have suggests that the market is prepared to lend to countries that can borrow in their own currencies (such as the UK) and that enjoy the benefits of an independent monetary policy, regardless of their credit ratings or their debt levels. But the politics of the downgrade are toxic for Osborne.

Still, you might ask, why should we listen to Moody’s, the agency that gave AIG an AAA rating just a month before it collapsed? The answer is simple: we shouldn’t. But this doesn’t alter the fact that Osborne did. For political purposes, he used Britain’s credit rating as a stick to beat Labour with. He can hardly complain if others now use this move against him. Tonight, the Chancellor has been hoist with his own petard.

“I don’t care what the ratings agencies think about anything, but if it’s a stark reminder of anything it’s a stark reminder that you’re the stupidest fucking person on the face of the planet.”- Atrios

“Often “austerity” and the “need” for budget cuts are just excuses to kicks the poors and olds and ram through whatever horrible agenda you wanted to ram through in the first place. But I think the simpleton Gideon Osborne really believes it. He likes kicking the olds and the poors too, but he’ll nonetheless be proved fucking right.

Except he won’t.

And for some reason Labour is unwilling to just say Shit Is Fucked Up And Bullshit, austerity bites, and we gotta step on the gas.”- Atrios

The condensed Moody’s downgrade

By Alex Hern, New Statesman

Published 23 February 2013 10:43

Some will focus on the fact that Moody’s analysis starts with poor growth as the basic factor for Osborne’s failure. Others will note that Moody’s is still a firm advocate of high-speed deficit reduction.

Still others, myself included, will argue that, apart from the fact that the Chancellor has been hoist by his own petard, all the news really does is prove yet again that ratings agencies aren’t very good at their jobs. Moody’s recognises that Britain’s economic travails stem from depressed growth, but its analysis seems incapable of progressing on from there. Taken as a whole, the agency is saying, with a straight face, that “Britain’s attempts to cut its debt have harmed its attempts to cut its debt, and this could harm its attempts to cut its debt”, and it sees nothing problematic with that.

Really, nothing in Moody’s analysis matters. The only important part of it is that one missing A, and the effect that has on Osborne’s credibility.

Who knew they sold meatballs?

Ikea withdraws meatballs in Europe, 21 nations hit

By Karl Ritter, Associated Press

February 25, 2013

Ikea’s North America branch said the U.S. stores get their meatballs from a U.S. supplier.

“Based on the results of our mapping, we can confirm that the contents of the meatballs follow the Ikea recipe and contain only beef and pork from animals raised in the U.S. and Canada,” Ikea North America spokeswoman Mona Astra Liss said in a statement.

Ikea is known for its assemble-it-yourself furniture but its trademark blue-and-yellow megastores also have cafeteria-style restaurants offering Swedish dishes such as meatballs served with boiled or mashed potatoes, gravy and lingonberry jam.

European Union officials met Monday to discuss tougher food labeling rules after the discovery of horse meat in a wide range of frozen supermarket meals that were supposed to contain beef or pork. So far those foods include meatballs, burgers, kebabs, lasagna, pizza, tortelloni, ravioli, empanadas and meat pies, among other items.

Cartnoon

With what sport is Wimbleton commonly associated?

No, try again.

Oh, I thought I said it badly.

Nothing to see here-

So not the drones you are looking for.

Robert Gibbs: I was told not to ‘acknowledge’ drones

By KATIE GLUECK, Politico

2/25/13 8:14 AM EST

“Here’s what’s inherently crazy about that proposition,” he said. “You’re being asked a question based on reporting of a program that exists. So you’re the official government spokesperson acting as if the entire program … pay no attention to the man behind the curtain. I think in many ways and I think what the president has seen – and I have not talked to him about this, I want to be careful. This is my opinion. But I think what the president has seen is our denial of the existence of the program when it’s obviously happening undermines people’s confidence overall in the decisions that their government makes.”

The Future of War in the Developed World

by Ian Welsh

2013 February 23

(T)he US military, the most expensive, most powerful military in the world, lost in Iraq (they had to pay bribes to leave). They are losing in Afghanistan.  In Mexico the state has been unable to control drug gangs.  In Lebanon, the IDF, the most powerful military in the Middle East, was defeated by Hezbollah. Hezbollah also won the e-lint war against the IDF.

Technology is not necessarily on the side of the great powers, of the big armies.  IEDs are cheap, any halfway competent mechanic can make them with materials that are readily available even in Afghanistan.



They are weapons whose widespread use can and will destroy nations by destroying the peace and stability required for prosperity and normal life.

But they are very, very effective.  They will work in virtually any nation if a large enough portion of the population wants them to work.

Do not think that the more intelligent members of current elites don’t know this. They understand what many on the left don’t: that first world militaries can be defeated, have been defeated, and that it can happen in their own countries.

And I suspect they are very very scared.  The surveillance state, routine assassinations by the executive, the loss of habeas corpus, and so on, are their response.  Total surveillance, and the ability to take people out anywhere, any time, is their answer, which is why I keep saying that I will know people are serious about revolution when they take out surveillance systems as a matter of routine, when surveillance becomes ethically anathema.



(M)ilitaries are very fightable, but such fights leave countries in ruins.  If the elites continue on their current course, in many first world countries, Iraq and Afghanistan and Mexico are the future.  People with no future will fight, and too many people now know how this form of war works.

This is the future of war.  If elites continue on their path of unaccountability, their insistence on destroying the future, and their crushing of prosperity, this is what will happen.

“The guerrilla must move amongst the people as a fish swims in the sea.”- Mao Tse-Tung

Pentagon Orders F-35 Jets Grounded

By CHRISTOPHER DREW, The New York Times

Published: February 22, 2013

The suspension of flights comes at an awkward time for the military, which is facing automatic budget cuts that could slow its purchases of the planes.



The Pentagon estimates that it could spend as much as $396 billion to buy 2,456 of the jets by the late 2030s. But the program, the most expensive in military history, has been plagued by cost overruns and delays, and it could easily become a target for budget cutters.



The F-35 was conceived as the Pentagon’s silver bullet in the sky – a state-of-the art aircraft with advances that would easily overcome the defenses of most foes. The radar-evading jets would dodge sophisticated antiaircraft missiles and give pilots a better picture of enemy threats while enabling allies, who want the planes, too, to fight more closely with American forces.

But the ambitious aircraft instead illustrates how the Pentagon can let huge and complex programs veer out of control. The program has run into other technical problems and nearly doubled in cost as Lockheed and the military’s own bureaucracy failed to deliver on the most basic promise of a three-in-one jet that would save taxpayers money and be delivered speedily.

On This Day In History February 25

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

February 25 is the 56th day of the year in the Gregorian calendar. There are 309 days remaining until the end of the year (310 in leap years).

On this day in Japan, the Plum Blossom Festival is held. The Festival at the Kitano Tenmangu Shrine in Kyoto is one one of the most beautiful. The shrine was built in 947, to appease the angry spirit of bureaucrat, scholar and poet Sugawara no Michizane, who had been exiled as a result of political maneuvers of his enemies in the Fujiwara clan.

The shrine was dedicated to Michizane; and in 986, the scholar-bureaucrat was deified and the title of Tenjin (Heavenly Deity) was conferred.

The grounds are filled with Michizane’s favorite tree, the red and white ume or plum blossom, and when they blossom the shrine is often very crowded. Open-air tea ceremonies are hosted by geiko and apprentice maiko from the nearby Kamishichiken district. The plum festival has been held on the same day every year for about 900 years to mark the death of Michizane.

Sugawara no Michizane, August 1, 845 – March 26, 903, was a scholar, poet, and politician of the Heian Period of Japan. He is regarded as an excellent poet, particularly in Chinese poetry.

He was educated in a private school run by his father where he studies to become an official in the Court of the Japanese Emperor. His training and skill with Classical Chinese language and literature afforded him many opportunities to draft edicts and correspondences for officials in the Court in addition to his menial duties. Records show at this time he composed three petitions for Fujiwara no Yoshifusa as well as the Emperor. Michizane also took part in receiving delegations from the Kingdom of Parhae, where Michizane’s skill with Chinese again proved useful in diplomatic exchanges and poetry exchange. In 877, he was assigned to the Ministry of the Ceremonial, which allowed him to manage educational and intellectual matters more than before. While serving as governor of Sanuki Province, he intervened in a Court matter on the side Emperor Uda over Fujiwara no Mototsune and at the end of his term returned to the Court in Kyoto where he served in many positions.

He was appointed ambassador to China in the 890s, but instead came out in support of abolition of the imperial embassies to China in 894, theoretically in consideration for the decline of the Tang Dynasty. A potential ulterior motive may have lain in Michizane’s almost complete ignorance of spoken Chinese; most Japanese at the time only read Chinese, and knew little to nothing about the spoken language. Michizane, as the nominated ambassador to China, would have been presented with a potential loss of face had he been forced to depend on an interpreter. Emperor Uda stopped the practice of sending ambassadors to China by what he understood as persuasive counsel from  Michizane.

Within the end of Emperor Uda reign in 897, Michizane’s position became increasingly vulnerable. In 901, through the political maneuverings of his rival, Fujiwara no Tokihira, Michizane was demoted from his aristocratic rank of junior second to a minor official post at Dazaifu, in Kyushu‘s Chikuzen Province. After his lonely death, plague and drought spread and sons of Emperor Daigo died in succession. The Imperial Palace’s Great Audience Hall (shishinden) was struck repeatedly by lightning, and the city experienced weeks of rainstorms and floods. Attributing this to the angry spirit of the exiled Sugawara, the imperial court built a Shinto shrine called Kitano Tenman-gu in Kyoto, and dedicated it to him. They posthumously restored his title and office, and struck from the record any mention of his exile. Sugawara was deified as Tenjin-sama, or kami of scholarship. Today many Shinto shrines in Japan are dedicated to him.

Late Night Karaoke

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