"A senior Chinese official yesterday attacked the planned iron ore joint venture between Rio Tinto and BHP Billiton, raising expectations that Beijing may use its antitrust law to try to scupper the deal.
Chen Yanhai, head of the raw material department of China's ministry of industry and information technology, told state media that the joint venture "has an obvious colour of monopoly" and should be subject to China's anti-monopoly laws.
"The joint venture is likely to have a big impact on the Chinese steel industry as China is the world's biggest iron ore importer," he said.
BHP and Rio are the world's second and third-biggest producers of the metal that is steel's key ingredient. Together the companies supply 75 per cent of China's iron ore imports from their adjacent operations in Australia's Pilbara region.
On June 5, the companies proposed merging these operations in a 50-50 joint venture, creating an estimated $10bn (about £6bn) in savings. To minimise regulatory problems, they said they would independently sell the ore produced by the joint venture.
""But it’s what the plan doesn’t do that is most notable, Mr. Nocera argues.
Take, for instance, the handful of banks that are “too big to fail”— and which, in some cases, the government has had to spend tens of billions of dollars propping up. In a recent speech in China, the former Federal Reserve chairman — and current Obama adviser — Paul Volcker called on the government to limit the functions of any financial institution, like the big banks, that will always be reliant on the taxpayer should they get into trouble. Why, for instance, should they be allowed to trade for their own account — reaping huge profits and bonuses if they succeed — if the government has to bail them out if they make big mistakes? Mr. Volcker asked.
"- there is nothing to empower investors and savers who have been fleeced to use the courts, as individuals or class action.
- he did not empower non profit financial consumer associations to help consumers.
- puts the systemic risk appraisal on the Federal Reserve, which Congress is prohibited from auditing for 50 years. The Fed looked the other way under Greenspan.
- he's bringing some derivatives under regulation, but inadequately. The derivative trade is over $5 trillion, dangerous custom made derivatives are pushed into a clearing house, not regulation. Wall Street is still trading and creating derivatives.
- he has created a consumer financial regulatory agency; all previous ones have all failed.
A non-profit consumer association will be introduced into the house shortly. Competition, checks and balances. They laugh at regulation, it is the threat of customers suing. When Senator Chris Dodd in 1995 led the fight to overthrow Clinton's veto of a law that weakened the right to go to court by investors, and to sue aiding and abetting accounting firms and law firms as well as brokerage firms, he set the stage for weakening millions of peoples' rights to have a remedy to go to court for compensation or to deter future fraud. There is nothing in Obama's proposal to repeal that act.
The biggest gap, too big to fail syndrome, if a company is too big to fail, it should not be allowed to be so big. Obama does not deal with the source of the problem even to the level of his own economic advisor, Paul Volcker, who recently made a speech in China saying that if companies are too big to fail they should be prohibited from dealing on their own part in the investment community.
China fears BHP-Rio link. China has a stake in breaking up the merger because they want to buy Rio Tinto, but Australia wouldn't let them do it. China said its stimulus must all be spent inside China with indigenous Chinese companies. China is violating the WTO. The US us in hock to China so it can't do anything about it. Paul Volcker had to go to China to make a speech asking why the too big to fail companies should be allowed to trade and make huge profits if things go well, if they have to be bailed out if they make big mistakes. Obama also rejected advice to reinstate the Glass Steagall Act which kept commercial and investment banking separate, preventing our banks from gambling with our money. FDR's banking reforms were far more comprehensive, and successful. Thom sees the hand of the former president of the New York Fed, Timothy Geithner in this, Larry Summers and Ben Bernanke. Obama is listening to the wrong people, to people who had a hand in the Wall Street collapse.
How do we get Obama to listen to people like Robert Reich or him? The press said Obama consulted consumer groups, but he did not consult Nader. Put the heat on Congress, there are good people who will take it on, air it in committees, like Maxine Waters and Bernie Sanders and Sherrod Brown, we should support them. Shift our business to small community banks and credit unions - vote with our dollars. A guest later in the show will talk about about banking.
Elizabeth Coleman: That’s correct.
Alan Grayson: Have you done any investigations concerning the Federal Reserve’s role in deciding not to save Lehman Brothers, which led to shockwaves that went through the entire financial system?
Elizabeth Coleman: In that particular area, you know, I don’t generally comment on specific investigations, but we do not currently have an investigation in that particular area.
Alan Grayson: All right, what about the $1 trillion-plus expansion of the Federal Reserve’s balance sheet since last September? Have you conducted any investigations regarding that?
Elizabeth Coleman: Right now, we have a… we call it a review and the term investigation, we have different connotations. So we’re actually conducting a fairly high-level review of the various lending facilities collectively, which would include, you know, the tow [ph], a variety of the different programs that are in process, so we’re looking at them at a fairly high level to identify risks.
Alan Grayson: Well, I understand that, but we’re talking about events that started unfolding eight months ago. Have you reached any conclusions about the Fed expanding its balance sheet by over a trillion dollars since last September?
Elizabeth Coleman: We have not yet reached any conclusions.
Alan Grayson: Do you know who received that money?
Elizabeth Coleman: For the… we are in the process right now of doing our review and…
Alan Grayson: Right, but you’re the Inspector General. My question specifically is do you know who received that $1 trillion-plus that the Fed extended and put on its balance sheet since last September? Do you know the identity of the recipients?
Elizabeth Coleman: I do not know. We have not looked at that specific area at this particular point on those reviews.
Alan Grayson: What about Bloomberg’s report that there are trillions of dollars in off-balance sheet transactions that the Federal Reserve has entered into since last September? Are you familiar with those off-balance sheet transactions?
Elizabeth Coleman: You know, I think it may be important at this point to, just to bring up a certain aspect related to our jurisdiction and just to clarify perhaps some of my earlier comments. We are the Inspector General for the Board of Governors and we have direct oversight over Board programs and operations and we’re also able to look at Board-delegated functions to the Reserve Banks, as well as the Board’s oversight and supervision of the Reserve Bank. We do not have jurisdiction to directly go out and audit Reserve Bank activities specifically. Nevertheless, in our lending facilities projects, for example, we are looking at the Board’s oversight over the program and to the extent that it extends out to the Federal Reserve Bank of New York.
Alan Grayson: Well, I have a copy of the Inspector General Act here in front of me and it says among other things that it's your responsibility to conduct and supervise audits and investigations relating to the programs and operations of your agency.
Elizabeth Coleman: That’s correct.
Alan Grayson: So I’m asking you if your agency has in fact, according to Bloomberg, extended $9 trillion in credit, which by the way works out to $30,000 for every single man, women and child in this country. I’d like to know, if you’re not responsible for investigating that, who is?
Elizabeth Coleman: We, actually… we have responsibility for the Federal Reserve’s programs and operations, to conduct audits and investigations in that area. In terms of who is responsible for investigating… would you mind repeating the question one more time?
Alan Grayson: What have you done to investigate the off-balance sheet transactions conducted by the Federal Reserve, which according to Bloomberg now total $9 trillion in the last 8 months?
Elizabeth Coleman: I’ll have to look specifically at that Bloomberg article. I’m not… I don’t know if I have actually seen that particular one.
Alan Grayson: That’s not the point. The question is have you done any investigation or auditing of off-balance sheet transactions conducted by the Federal Reserve?
Elizabeth Coleman: At this point, we’re at the very, we're conducting our lending facility project at a fairly high level and have not gotten to a specific level of detail to really be in a position to respond to your question.
Alan Grayson: Have you conducted any investigation or auditing of the losses that the Federal Reserve has experienced on its lending since last September?
Elizabeth Coleman: We are still in the process of conducting that review. Until we actually, you know, go out and gather the information, I’m not in a position to really respond to this specific question.
Alan Grayson: So are you telling me that nobody at the Federal Reserve is keeping track on a regular basis of the losses that it incurs on what is now a $2 trillion portfolio?
Elizabeth Coleman: I don’t know if… you’re telling me that there’s… you’re mentioning that there's losses. I’m just saying that we’re not… until we actually look at the program and have the information, we are not in a position to say whether there are losses or to respond in any other way to that question.
Alan Grayson: Mr. Chairman, my time is up, but I have to tell you honestly, I am shocked to find out that nobody at the Federal Reserve including the Inspector General is keeping track of this.
Is Anyone Minding the Store at the Federal Reserve?
Rocky: "Bullwinkle, we're headin' swiftly down the river and out to sea!"
Bullwinkle: "Ok, I heard the man!"
"President Obama’s plan to reshape financial regulation, which he will unveil on Wednesday, is the product of weeks of meetings among government officials, financial experts, lawmakers, industry executives and lobbyists, many of whom were invited to help the White House draft the proposal."
Adam Smith.
What Is A Common Good Bank™? Not just another bank with a social mission. This is a social mission with a bank!
- All profits go to schools and other nonprofits.
- Depositors decide what the bank should invest in.
- Free local credit card processing for local businesses.
- Micro-loans for new businesses and community projects.
- A full range of secure, FDIC-insured banking services.
- Committed to sustainability and economic justice.
New democratic economic system, sustainability, compassionate. FDIC. Non profit. The banks will be technically for profit, the stockholders will be depositors.
"A Texas nurse said she lost her coverage, after she was diagnosed with aggressive breast cancer, for failing to disclose a visit to a dermatologist for acne.
The sister of an Illinois man who died of lymphoma said his policy was rescinded for the failure to report a possible aneurysm and gallstones that his physician noted in his chart but did not discuss with him.
The committee's investigation found that WellPoint's Blue Cross targeted individuals with more than 1,400 conditions, including breast cancer, lymphoma, pregnancy and high blood pressure. And the committee obtained documents that showed Blue Cross supervisors praised employees in performance reviews for rescinding policies.
One employee, for instance, received a perfect 5 for "exceptional performance" on an evaluation that noted the employee's role in dropping thousands of policyholders and avoiding nearly $10 million worth of medical care.
...
Late in the hearing, Stupak, the committee chairman, put the executives on the spot. Stupak asked each of them whether he would at least commit his company to immediately stop rescissions except where they could show "intentional fraud."
The answer from all three executives:
"No."
""The man once slated to head Barack Obama's health care system overhaul is now coming out against one of the chief components of that effort.
Former Senate Majority Leader Tom Daschle said on Wednesday that the Obama White House would likely have to scrap a federal public option for health insurance coverage if it wanted to get the votes needed to pass systematic change.
"We've come too far and gained too much momentum for our efforts to fail over disagreement on one single issue," the Senator and one-time HHS Secretary nominee said, according to ABC News.
"I am certified in natural, homeopathic healing techniques and with the above mentioned gift, I am able to employ a healthy, holistic healing approach, tunning in to a patients physical, emotional, and spiritual needs and prescribing natural remedies.
""Across the animal kingdom, creatures engage in same-sex courtships, child-rearing and sex, report biologists Tuesday. The Trends in Ecology and Evolution journal review by Nathan Bailey and Marlene Zuk of the University of California-Riverside calls for increased research on the "evolutionary consequences" of same-sex behavior in animals and people. "Same-sex sexual behavior extends far beyond the well-known examples … bonobos, dolphins, penguins and fruit flies," Bailey says, in a statement. Earthworms, penguins and fish can form long-term same-sex couples that have long been a "puzzle" to evolutionary biologists, says the study, because such pairings don't lead directly to offspring. However, other studies, for example in albatross families, show that female couples may raise more chicks than male-female ones, suggesting an evolutionary advantage to same-sex behavior."
Animal homosexuality nearly universal, Dan Vergano.
"Heart arrhythmias in females and permanent, deleterious modifications of a gene that plays a pivotal role in reproduction are two new problems being linked to bisphenol A. Best known simply as BPA, this chemical is a building block of polycarbonate plastics — the hard, clear type used in kitchenware and baby bottles — and of resins used to line most U.S. food cans."
"We are not a warlike people. We have never sought glory as a Nation of warriors. We are not interested in aggression. We are not interested—as the dictators are—in looting. We do not covet one square inch of the territory of any other Nation."
Franklin D. Roosevelt, Labor Day Radio Address, September 1st, 1941.
About the Supreme court decision re DNA. Why do we never year from law and order types? Not only without DNA testing does an innocent man get prosecuted for rape, but a rapist goes free?
