In an experiment apparently aimed at keeping down the cost of health-care reform, Orlando-based Darden Restaurants has stopped offering full-time schedules to many hourly workers in at least a few Olive Gardens, Red Lobsters and LongHorn Steakhouses…In an emailed statement, Darden said staffing changes are “just one of the many things we are evaluating to help us address the cost implications health care reform will have on our business. There are still many unanswered questions regarding the health care regulations and we simply do not have enough information to make any decisions at this time.”

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The Pentagon says cyberspace is an operational domain on par with land, sea, air and outer space, and there is little doubt that a global cyberarms race is getting underway. The United States is already well engaged in this race, as evidenced by reports of the computer worm Stuxnet, used to attack Iran’s nuclear enrichment equipment. But so far these efforts have largely been kept secret and conducted as intelligence operations.

DARPA’s workshop points again to the need for more transparency. The United States still has no open, overarching doctrine to govern a cyberweapons program. A good place to start would be a declaratory policy that would lay out when and under what circumstances offensive weapons such as Stuxnet might be used. After that, an open discussion is needed about rules of engagement for this complex new field, along with additional study of such issues as how and whether the military should protect non-military assets in government and the private sector.

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The global economy risks skidding toward recession just three years after pulling out of the previous one, the International Monetary Fund warned, adding that fighting a renewed world-wide downturn will be much more complex than it was in 2009.

“Risks for a serious global slowdown are alarmingly high,” said the IMF’s World Economic Outlook report, which was released here Tuesday ahead of the fund’s annual fall meeting. It was its bleakest assessment of global growth prospects since the 2009 recession.

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The greatest risk to US financial markets stems from other countries’ willingness (or lack thereof) to continue to hold dollar reserves as the value depreciates. If those nations suspect that the US cannot maintain the strength of our currency, they will begin to drain assets from American banks ”“ seeking safer havens for their wealth. That could entail trading US treasury bonds for perceived “safer” currencies such as those of New Zealand or Canada or even switching to an entirely different asset class such as gold or silver.

While there may not be any significant signs of capital flight yet, just look east. The Chinese are the largest, external holder of US debt. And they’re already heading down this path ”“ dropping the share of their portfolio comprised of US dollar assets from 74 to 54 percent in the last five years. It may very well be a harbinger of what’s to come.

Attempting to counter fears fanned by trends like this, Bernanke talks of a “soft landing…”

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Do you sleep with your smartphone? Are you on 24/7? Do you think that your success depends on your non-stop connection to work?

Harvard Business School professor Leslie Perlow has a better way.

In her latest book, Sleeping with Your Smartphone: How to Break the 24/7 Habit and Change the Way You Work, Perlow shows how to disconnect and become more productive in the process. She provides techniques for devoting more time to your personal life while simultaneously accomplishing more at work.

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Among the 23 recipients of the MacArthur “genius” grants this past week: an economist, a mathematician, a photographer, a neuroscientist, and a Boston-based stringed instrument bow maker.

Benoit Rolland acknowledges that the violin reigns supreme as the star of the strings, capable of fetching millions of dollars at auction. But what about the bow? “A violin with no bow is not a violin, that’s clear,” says Rolland.

“A lot of people, even some instrumentalists, in our younger years we believe that the violin is of paramount importance and the bow is just a tool,” says Elita Kang, assistant concert master of the Boston Symphony Orchestra. “But the bow is just as important as the violin because that is our breath. That’s how we draw the sound out of the instrument, so without a fine bow that’s responsive and flexible and finely made, we can’t express ourselves fully.”

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His job was to stand with customers in their back yards, suntanned and smiling, and look beyond the problems of the past several years to see the opportunities in every suburban cul-de-sac. How about a pool and a sauna next to the patio? Or a custom waterfall near the property line?

“The possibilities here are as big as you can dream them,” he liked to tell customers, gesturing at their yards.

In a country built on optimism, Frank Firetti was the most optimistic character of all: the American salesman ”” if not the architect of the American dream then at least its most time-honored promoter. He believed that you could envision something and then own it, that what you had now was never as good as what you would have next. Since the country was founded, it had climbed ever upward on the spirit of people like him, on their vision, on their willpower, on their capitalism. But now, when he traveled from house to house to sell his monuments to American success, he sensed that spirit waning….

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The reality is that more than three years into this weakest of economic recoveries, 12.1 million Americans are still out of work””nearly 23 million by the broader definition that includes those who have stopped looking or can’t find full time work””and the labor participation rate is still down to 1981 levels at 63.6%. Hooray!

Of the 114,000 new jobs, 104,000 were in the private economy, and all of the 86,000 in upward revisions for July and August came in government jobs. Job growth for 2012 has averaged 146,000 a month, which is down from 153,000 in 2011.

Manufacturing employment fell again (down 38,000 in the last two months) further dampening one of the few bright spots in this recovery. A still abysmal 40.1% of the unemployed in America have been jobless for six months or more. Such a job market is anemic by any historic measure for this stage in an expansion and reflects continuing slow GDP growth in the 1%-2% range.

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It’s rare to find a pastor who is attuned to how “place” informs human experience and community. But a discerning pastor can know more about this than most city planners, if they are attentive to the particular shape of the lives of their congregants and their community. Enter Eric O. Jacobsen (PhD, Fuller Theological Seminary), a pastor of 14 years, the last 5 as senior pastor of First Presbyterian Church of Tacoma. “I am not a trained architect or urban planner, but an ordinary pastor who has always lived within walking distance of my church,” he says.

Jacobsen’s 2003 “break-out” book, Sidewalks in the Kingdom (Brazos Press), used the tenets of New Urbanism to help Christians recognize the value of local churches in local neighborhoods. Jacobsen calls his newest book, The Space Between: A Christian Engagement with the Built Environment (Baker Academic), a “more mature reflection” on the subject.

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Greece is teetering on the edge of collapse with its society at risk of disintegrating unless the country’s near-empty public coffers are shored up with urgent financial aid, the country’s prime minister has warned.

Almost three years after the eruption of Europe’s debt drama in Athens, the economic crisis engulfing the nation has become so severe that democracy itself is now imperiled, Antonis Samaras said.

“Greek democracy stands before what is perhaps its greatest challenge,” Samaras told the German business daily Handelsblatt in an interview published hours before the announcement in Berlin that Angela Merkel will fly to Athens next week for the first time since the outbreak of the crisis.

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The U.S. unemployment rate fell sharply in September to its lowest level since January 2009, suggesting that summer job growth was stronger than previously thought and providing new fodder for a presidential race that has focused on competing views of the nation’s economic health.

Data released Friday portrayed a labor market that has perked up a bit since the spring but is still growing modestly. The unemployment rate slid to 7.8%, the Labor Department said, falling below 8% for the first time since President Barack Obama’s inauguration. The rate has fallen half a percentage point since July, when it was 8.3%.

Read it all. Mish did an excellent job in his analysis. Blog readers know I prefer U-6, which I consider the most representative rate–it stayed the same month over month–KSH

The accolades continue to pile up for Charleston area restaurants.

Esquire magazine has named two local dining establishments to its 2012 list of “Best New Restaurants.” Only 20 establishments nationwide made the list.

The Macintosh on King Street, opened by the Indigo Road restaurant group in September 2011, and Carter’s Kitchen in Mount Pleasant, which opened in February, landed on the annual list compiled by food critic John Mariani.

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Here’s a quiz: Google received more than 1,900 requests from governments worldwide to remove content from its various services last year. Which country led the planet in this dubious category, with 418 such demands?

China? Iran? Syria?

No. It was democratic, pluralistic, economically vibrant Brazil.

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A federal strike force has charged 91 people, including a hospital president, doctors and nurses, with Medicare fraud schemes in seven cities involving $429 million in false billings.

At a news conference Thursday, Attorney General Eric Holder said the case reveals an alarming trend in criminal efforts to steal billions of taxpayer dollars for personal gain. Holder called the action one of the largest such law enforcement efforts of its kind.

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Federal Reserve officials debated the risks of beginning an ambitious new stimulus policy before ultimately giving it a green light, according to minutes of the central bank’s September meeting released Thursday.

The minutes show officials concerned during their two-day meeting that without further action, the unemployment rate could remain stubbornly high. Officials were also troubled by signs of slowing growth abroad, including in China, and the possibility of a so-called fiscal cliff at home.

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“Keep Calm and Carry On?” Sorry, that was 2009.

Ever since the wartime British propaganda poster bearing those soothing words went viral a few years ago, ending up on iPhone cases and coffee mugs, design types have been searching for the next great hyperlinked homily.

Lately, the leading candidates are popping up in the most unlikely of places: Pinterest. The explosively popular image-sharing site has fallen under the spell of words ”” that is, quotes from the great minds that offer lessons to live by.

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Nairobi’s police commissioner Njoroge Ndirangu reported that an examination of the crime scene indicated a limpet mine or an Improvised Explosive Device (IED) containing nails, ball-bearings and other pieces of shrapnel was electronically detonated alongside the wall of the Christian education building of St Cyprian’s Anglican Church at approximately 10:30 local time. Shrapnel from the blast killed an eight year old boy and wounded several children attending a Bible study. Six children were taken in serious condition to the capital’s Kenyatta National Hospital for treatment.

Popular sentiment in Nairobi lays the blast on al Shabaab…the Somali terror group….

However, the use of an IED might have been a copycat attack designed to drive the church off its land….

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The older Americans get, the more likely they are to suffer cognitive decline. Roughly 14 per cent of people over 71 have some level of dementia, according to the National Institutes of Health, a part of the U.S. Department of Health and Human Services. For those in their 90s, the rate rises to 37.4 per cent.

Many older folks have spent a lifetime managing their finances and take pride in it. They may hold onto their checkbooks and brokerage statements more tightly than they do their car keys.

Take the parents of John M. Smartt Jr., a Knoxville, Tennessee certified public accountant and investment adviser, who have been married for almost 70 years. Just last week they finally agreed to merge their separate checking accounts and allow Mr. Smartt to write checks for them.

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An experimental drug appears to preserve and possibly even improve the ability of boys with Duchenne muscular dystrophy to walk, according to the results of a clinical trial announced on Wednesday, raising hopes that the first effective treatment for the disease may be on the horizon.

Boys with the disease who received the highest dose of the drug had a slightly improved ability to walk after 48 weeks of treatment, the drug’s developer, Sarepta Therapeutics, announced. By contrast, the boys who received a placebo suffered a sharp decline in how well they could walk.

The drug, called eteplirsen, also appeared to restore levels of the key protein that muscular dystrophy patients lack to about half of normal levels, Sarepta said.

Read it all. The blog has been following this story for a while now–keep your eye on it, it is a potnetially once in a lifetime event; KSH.

A major study published by the United Nations has warned that the growing numbers of the elderly presented significant challenges to welfare, pension and health care systems in both developing and developed nations.

And it bemoans the fact that skills and knowledge that older people have acquired are going to waste in societies rather than being used to their full.

“We must commit to ending the widespread mismanagement of ageing,” said Richard Blewitt, chief executive of HelpAge International, which collaborated on the report, Ageing in the 21st Century.

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And to draw, dear reader, what I think are critical relative comparisons, look at who’s in that ring of fire alongside the U.S. There’s Japan, Greece, the U.K., Spain and France, sort of a rogues’ gallery of debtors. Look as well at which countries have their budgets and fiscal gaps under relative control ”“ Canada, Italy, Brazil, Mexico, China and a host of other developing (many not shown) as opposed to developed countries. As a rule of thumb, developing countries have less debt and more underdeveloped financial systems. The U.S. and its fellow serial abusers have been inhaling debt’s methamphetamine crystals for some time now, and kicking the habit looks incredibly difficult.

As one of the “Ring” leaders, America’s abusive tendencies can be described in more ways than an 11% fiscal gap and a $1.6 trillion current dollar hole which needs to be filled. It’s well publicized that the U.S. has $16 trillion of outstanding debt, but its future liabilities in terms of Social Security, Medicare, and Medicaid are less tangible and therefore more difficult to comprehend. Suppose, though, that when paying payroll or income taxes for any of the above benefits, American citizens were issued a bond that they could cash in when required to pay those future bills. The bond would be worth more than the taxes paid because the benefits are increasing faster than inflation. The fact is that those bonds today would total nearly $60 trillion, a disparity that is four times our publicized number of outstanding debt. We owe, in other words, not only $16 trillion in outstanding, Treasury bonds and bills, but $60 trillion more. In my example, it just so happens that the $60 trillion comes not in the form of promises to pay bonds or bills at maturity, but the present value of future Social Security benefits, Medicaid expenses and expected costs for Medicare. Altogether, that’s a whopping total of 500% of GDP, dear reader, and I’m not making it up. Kindly consult the IMF and the CBO for verification. Kindly wonder, as well, how we’re going to get out of this mess.

Please take the time to read it all and examine the chart closely. The only difference on this between Mr. Gross and myself is that I believe he understates the problem with the 60 trillion dollar figure. As has been discussed on the blog in the past, the correct figure may be as much as three plus times that amount–KSH.

According to the non-partisan Tax Policy Center, the U.S. is on the threshold of one of the largest tax increases in history, a tax hike that could average $3,500 for every American household.

Without actions from Congress, the report says taxes will go up next year by 20 percent, or $536 billion overall. It will hit Americans at every income level including those living below the poverty line. For a middle income family making $40,000 per year, the tax increase is $2,000.

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“The Spanish were a bit hesitant but now they are ready to request aid,” a senior European source said. Three other euro zone senior euro zone sources confirmed the shift in the Spanish position, all speaking on condition of anonymity because they were not authorised to discuss the matter.

German Finance Minister Wolfgang Schaeuble has said Spain is taking all the right steps to overcome its fiscal problems and does not need a bailout, arguing that investors will recognise and reward Spanish reforms in due course.

Privately, several European diplomats and a senior German source said Chancellor Angela Merkel preferred to avoid putting more individual bailouts for distressed euro zone countries to her increasingly reluctant parliament.

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Americans have poured record amounts of money into savings accounts even though interest rates are at historic lows, new federal data show, a sign that average people may be missing out on a booming stock market and recovering real estate sector.

The total amount in those accounts climbed nearly 5 percent to $6.9 trillion in the spring, the highest level recorded since the Federal Reserve launched its regular reports on the flow of money in the economy in 1945. At the same time, other data show that Americans are fleeing the stock market and avoiding the purchase of new homes.

The pattern suggests that Americans, wounded by the financial crisis and scared by an uncertain job market, do not want to take any risks with their money ”” even as the government is encouraging risk-taking.

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Support for Gov. Jerry Brown’s plan for billions of dollars in tax hikes on the November ballot is slipping amid public anxiety about how politicians spend money, but voters still favor the proposal, according to a new USC Dornsife/Los Angeles Times poll.

The findings suggest that voters are leery of sending more cash to Sacramento in the wake of a financial scandal at the parks department, spiraling costs for a multibillion-dollar high-speed rail project to connect Northern and Southern California and ill-timed legislative pay raises.

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More than one in 10 borrowers defaulted on their federal student loans, intensifying concern about a generation hobbled by $1 trillion in debt and the role of colleges in jacking up costs.

The default rate, for the first three years that students are required to make payments, was 13.4 percent, with for-profit colleges reporting the worst results, the U.S. Education Department said… [late last week]

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The Spanish government Saturday said the effort to clean up an ailing banking system will have a big impact on its finances, widening its budget gap and increasing its debt load.

Budget Minister Cristobal Montoro said the government forecasts its budget deficit will stand at 7.4% of gross domestic product this year. Excluding the impact of measures to help banks to digest a massive pile of toxic real-estate assets, he said Spain will comply with the deficit target of 6.3% of GDP for 2012 it has committed to with the European Union.

The new budget projections come at a time of uncertainty about the country’s solvency amid soaring borrowing costs. Many analysts expect the government’s effort to lower a budget gap to below the 3%-of-GDP limit for EU countries by 2014 to go off track also because of a deep recession that is pushing the unemployment rate to a record high of almost 25%.

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….personal observation and a smattering of data belie the current reality and in the time since Ms. [Hanna] Rosin’s essay and the release this month of her book The End of Men: And The Rise of Women, I can’t help but wonder if about this claim of victory by authors such as Ms. Rosin and others is premature.

Women hold only 10 per cent of seats on boards of directors in Canada, and 16 per cent in the United States, according to a recent report by Catalyst. The number of female lead directors of Fortune 500 companies fell in 2011, even as Ms. Rosin was busy writing her book. How can women claim victory when the European Union is struggling with legislation to ensure 40 per cent of non-executive board seats are filled with women by 2020?

Social upheaval doesn’t occur overnight. of course, but I caution against believing that a matriarchy is definitively in the cards and that it’s just a matter of time before the power flip.

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Both India and China have intense national testing programs to find the brightest students for their elite universities. The competition, the preparation and the national anxiety about the outcomes make the SAT testing programs in the U.S. seem like the minor leagues. The stakes are higher in China and India. The “chosen ones”””those who rank in the top 1%””get their choice of university, putting them on a path to fast-track careers, higher incomes and all the benefits of an upper-middle-class life.

The system doesn’t work so well for the other 99%. There are nearly 40 million university students in China and India. Most attend institutions that churn out students at low cost. Students complain that their education is “factory style” and “uninspired.” Employers complain that many graduates need remedial training before they are fully employable.

For now, the U.S. university system is still far ahead. But over the next decade, there will be a global competition to educate the next generation, and China and India have the potential to change the balance of power.

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