An investigation into commercial online filtering technology reveals the prevalence of devices from Blue Coat, an American firm, being used to censor the Web in Syria and Burma. Ron Deibert of Toronto’s Citizen Lab discusses the report’s importance.

If you live in Burma or Syria, good luck trying to access pro-democracy websites, overseas news networks, even dating websites. Thanks to devices made by Blue Coat Systems, portions of the Net are inaccessible to residents in these countries, and a recent report reveals how a number of these filtering devices have been found in the regions, despite the manufacturer claiming they never sell their products to embargoed countries.

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With interest rates on its sovereign debt surging well above seven per cent, there is a rising risk that Italy may soon lose market access. Given that it is too-big-to-fail but also too-big-to-save, this could lead to a forced restructuring of its public debt of €1,900bn. That would partially address its “stock” problem of large and unsustainable debt but it would not resolve its “flow” problem, a large current account deficit, lack of external competitiveness and a worsening plunge in gross domestic product and economic activity.

To resolve the latter, Italy may, like other periphery countries, need to exit the monetary union and go back to a national currency, thus triggering an effective break-up of the eurozone.

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Through heavy social spending and investments in major building projects, Spain is one country whose regional authorities have been living beyond their means and racking up large budget deficits. Those gaps were sustainable during boom times, but in the current economic climate, they threaten to push Spain toward a financial reckoning that could have consequences far beyond its borders.

Regional overspending is likely to cause the central government in Madrid to miss its target of bringing the nation’s overall deficit down to 6% of gross domestic product this year, considered crucial to maintain investor confidence. For that reduction to happen, Spain’s 17 regional governments were told to post budget shortfalls amounting to no more than 1.3% of GDP, but they almost reached that level after just the first six months of the year.

“If the regions surpass their deficit limits, then they can send Spain as a whole off course,” said Ismael Sanz, an analyst at King Juan Carlos University in Madrid.

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Italy on Wednesday became the first major economy to require an international bail-out as its debts hit “totally unsustainable levels”.

The country’s escalating crisis prompted questions about whether European leaders had sufficient will or financial firepower to rescue it.

The interest rate at which the Italian government borrows on the international bond markets hit seven per cent ”“ the point at which the smaller eurozone economies of Ireland, Portugal and Greece had to be rescued.

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The vote by officials in Alabama’s most populous county occurred about a month after Pennsylvania’s capital of Harrisburg sought court protection citing millions in overdue bond payments tied to a trash-to-energy incinerator. A Jefferson filing would eclipse that of California’s Orange County in 1994. The action might reignite concerns among investors over defaults in the $2.9 trillion U.S. municipal bond market.

“It’s going to create attention-grabbing headlines, and the question is how retail investors react,” Peter Hayes, a managing director at BlackRock Inc., the world’s largest asset manager and the owner of $95.6 billion of municipal bonds, said before today’s decision.

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Update: I found the following map helpful in terms of locating where Jefferson County is.

The world’s leading oil exporter Saudi Arabia faces rising tensions with regional rival Iran and turmoil in two neighbouring countries hit by the wave of Arab unrest this spring as it tackles changes at the top of its ruling family.

The death of Crown Prince Sultan in October led to conservative Interior Minister Prince Nayef’s promotion to King Abdullah’s heir only a week after the octogenarian monarch had his third back operation within a year.

The stability of Saudi Arabia is of global importance since the kingdom sits on more than a fifth of the world’s oil reserves, is a significant owner of dollar assets and acts as Middle East lynchpin of U.S. security policy.

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The National Association of Evangelicals on Tuesday (Nov. 8) called for greater precautions with nuclear weapons and a renewed effort toward disarmament.

“The rules have changed in the past 25 years,” NAE President Leith Anderson said. “Nuclear weapons don’t serve as a deterrent to the dangers of our post-Cold War era, which include rogue nations and terrorist groups.”

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Italy’s financial crisis deepened on Wednesday despite a pledge by Prime Minister Silvio Berlusconi to resign once Parliament passes austerity measures demanded by the European Union.

The move failed to convince investors, propelling Italy’s borrowing costs through a key financial and psychological barrier of 7 percent, close to levels that have required other euro zone countries to seek bailouts.

Mr. Berlusconi, cornered by world markets and humiliated by a parliamentary setback, appeared to have become the most prominent victim of the broader European debt crisis. But his decision did not remove wide uncertainty about Italy’s ability to tackle the crisis, and some analysts said the prospect of a protracted period of political wrangling could exert further pressure for a quicker exit from the impasse.

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Obama, at any rate, felt that they would have little value. Instead, he confronted the Germans in Cannes with a suggestion so radical that it alarmed both Merkel and Schäuble. To save the common currency, Obama proposed that the Europeans follow the example of the American Federal Reserve, which buys up almost unlimited amounts of US treasury bonds when necessary.

The Germans pointed out feebly that the ECB operates within a completely different tradition than the Fed, and that it also pursues a different mission. But it is becoming increasingly clear to Merkel and her finance minister that, in the end, only the ECB will be able to save the euro if the crisis continues to escalate. It is the only European fiscal policy institution capable of taking action, and it also comes equipped with unlimited firepower. It can never run out of money, because it can simply print new money when needed.

This is an approach Germany’s representatives in the ECB council have strongly resisted….But how long can the Germans resist the pressure from other members?

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Mr [Ken] Costa, the chairman of the St Paul’s Initiative, established by the Church to open up a debate on ethical capitalism, said the clergy’s response to the ongoing protests outside St Paul’s Cathedral must not turn into a “reheated Faith in the City”.

In his first public comments since his appointment, Mr Costa insisted that a flourishing banking sector was “essential to any successful economy” and that financial incentives are “both valid and effective”.

He also said that stiffer regulation of financial services was not necessarily the solution to the global economic crisis, saying, “you cannot regulate into existence a culture of honesty, integrity, truthfulness and responsibility”.

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An interesting retrospective so to speak–read it all.

Like many middle-class American baby boomers, Linda Carmona-Sanchez is anxious about slipping into poverty and says whatever dreams she once had about retirement in her “golden years” have turned into nightmares.

“We don’t value people here in this country, and we value you less if you’re not healthy and strong,” Carmona-Sanchez, 55, said.

“To me it would almost be a welcome blessing to know that I would die rather than to be old and have to live in poverty,” she said.

Her anxiety is widespread….

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Silvio Berlusconi, Italy’s embattled prime minister, signalled on Tuesday night that he would resign after parliament passes a new financial stability law that will implement fresh austerity measures demanded by the European Union.

Giorgio Napolitano, head of state, said Mr Berlusconi had expressed his recognition of the “urgent need” to respond quickly to the expectations of Europe through the approval of the stability law, which would be amended in light of the most recent recommendations of the European Commission.

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A special U.S. committee charged with reducing the federal deficit is entering a critical week for reaching a deal but has not considered extending its Nov. 23 deadline, a panel member said Monday.

“Every member understands that time is running out,” House Democrat Chris Van Hollen, a member of the “super committee,” said in an interview with MSNBC’s “Morning Joe” program. “This is the moment to get it (a deal) done if we’re going to get it done.

“The clock’s ticking. We’ve got just a little over two weeks and that includes the time that it will take to put the final touches on any agreement that we might be able to reach,” he said.

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As student-loan default rates climb and college graduates fail to land jobs, an increasing number of students are betting they can get just as far with a degree from a less-expensive school as they can with a diploma from an elite school””without having to take on debt.

More students are choosing lower-cost public colleges or commuting to schools from home to save on housing expenses. Twenty-two percent of students from families with annual household incomes above $100,000 attended public, two-year schools in the 2010-2011 academic year, up from 12% the previous year, according to a report from student-loan company Sallie Mae.
Such choices meant families across all income brackets spent 9% less””an average of $21,889 in cash, loans, scholarships and other methods””on college in 2010-11 than in the previous year, according to the report. High-income families cut their college spending by 18%, to $25,760. The report, which is released annually, was based on a survey of about 1,600 students and parents.

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Read it all and note the full pdf download is available at the bottom.

British bankers have admitted that they are paid too much, a report into moral standards in the City of London will reveal tomorrow.

A survey of 500 workers in City financial institutions, carried out for the Christian think-tank St Paul’s Institute, found that “a substantial number” believed they were overpaid compared with other professions ”“ particularly frontline workers including teachers and, most of all, nurses.

The results will fuel continuing bitterness towards the industry over its culpability for the financial crisis and its apparent failure to rein in huge salaries and bonuses . Last night The Sunday Times reported the publicly owned Royal Bank of Scotland is planning to pay its investment bankers about £500m in bonuses.

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About a third of hospitals serving South Carolinians collected a combined $110 million in state and federal taxpayer money last year through a program designed to reward medical centers that provide high levels of uncompensated care.

But those 18 hospitals, which include three in the Charleston area, actually do not provide a disproportionate amount of care to uninsured South Carolinians and those enrolled in government-sponsored insurance programs.

Now the state is cutting payments to those hospitals by about 8 percent, saving taxpayers nearly $9 million annually.

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The graph is a helpful one.

The sharp rise in federal borrowing is offsetting efforts of consumers to reduce debt, leaving the economy deeper in debt than when the recession began in December 2007, a USA TODAY analysis finds.

The substitution of government debt for consumer debt helped end the recession and start a recovery, economists say, but it leaves the nation’s long-term economic health in peril.

Households have reduced debt by $549billion since 2007, mostly by cutting mortgages through defaults and paying down credit cards. During that time, the federal government has added more than $4trillion in debt, pushing the country’s total borrowing to a record $36.5trillion, excluding the financial industry, according to the Federal Reserve.

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A financial transaction tax would be the wrong choice for Europe at any time; and particularly now.

To understand the impact of FTT, we need to answer four essential questions. Is it an efficient means of raising tax revenue? Would it benefit the end-users of the financial markets, both businesses and consumers? Would it enable the creation of economic growth and jobs? And would it make financial markets more stable?

First, financial services is a mobile, global and highly competitive sector. The European Commission’s suggests that Europe would lose 10 per cent of its securities market, 40 per cent of its spot currency market and 70 to 90 per cent of its derivatives market if FTT were introduced.
These are alarming numbers and economically very damaging ”” and they are not mere conjecture. Sweden’s FTT (from 1984 to 1991), resulted in between 90 and 99 per cent of traders in bonds, equities and derivatives moving from Stockholm to London. This was an expensive lesson for Sweden. Its experience should prevent Europe from making a similar mistake.

Second, what will be the impact on users of financial markets, including ordinary consumers? Economic theory suggests that a transaction tax would largely be passed on to end-users, whether they are savers, investors or businesses. The European Commission itself makes this point.

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Many City workers feel the gap between rich and poor in the UK is too great, according to a report by a think-tank.

The St Paul’s Institute report, Value and Values: Perceptions of Ethics in the City Today, said 75% of respondents thought the wealth divide was too big.

The findings were based on a survey in August of 515 financial professionals.

The think-tank is linked to St Paul’s Cathedral, in London, where protesters against corporate greed have been demonstrating since 15 October.

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What we need to do is to delete the viruses that have crept into our system: the anticompetitive quasi monopolies that blight everything from banking to public education; the politically correct pseudosciences and soft subjects that deflect good students away from hard science; the lobbyists who subvert the rule of law for the sake of the special interests they represent””to say nothing of our crazily dysfunctional system of health care, our overleveraged personal finances, and our newfound unemployment ethic.

Then we need to download the updates that are running more successfully in other countries, from Finland to New Zealand, from Denmark to Hong Kong, from Singapore to Sweden.

And finally we need to reboot our whole system.

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As Daniel Yergin writes in “The Quest,” his gripping history of energy innovation, [George] Mitchell fought through waves of skepticism and opposition to extract natural gas from shale. The method he and his team used to release the trapped gas, called fracking, has paid off in the most immense way. In 2000, shale gas represented just 1 percent of American natural gas supplies. Today, it is 30 percent and rising.

John Rowe, the chief executive of the utility Exelon, which derives almost all its power from nuclear plants, says that shale gas is one of the most important energy revolutions of his lifetime. It’s a cliché word, Yergin told me, but the fracking innovation is game-changing. It transforms the energy marketplace.

The U.S. now seems to possess a 100-year supply of natural gas, which is the cleanest of the fossil fuels. This cleaner, cheaper energy source is already replacing dirtier coal-fired plants. It could serve as the ideal bridge, Amy Jaffe of Rice University says, until renewable sources like wind and solar mature.

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(Please note that this is an article about the op-ed which is the post previous to this one–KSH).

The Archbishop of York has urged the Government to introduce a radical overhaul of the tax system and called for greed to be made as socially unacceptable as racism and homophobia.

Dr John Sentamu claimed many of the wealthiest in society are avoiding paying their dues in a stinging attack on the growing divide between Britain’s rich and poor.

Highlighting the growing gulf between the poorest sections of society and the nation’s uber-wealthy, Dr Sentamu also said those who have accumulated the biggest fortunes should not be included on the Queen’s Honours List.

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Top pay has been found to bear little or no relation to company performance, but even if it did, isn’t the performance of a company dependent on the work and well-being of all its staff?

Among the ill effects of very large income differences between rich and poor are that they weaken community life and make societies less cohesive.

If the concept of the Big Society is to become a reality, so that people come to know and take more care of each other, income differences must surely be reduced.

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While their ages, backgrounds and styles were different, [Maria] Calef and [Daniel] Wilkes delivered the same message to passers-by Wednesday morning.
Calef hoisted a yellow poster board that read, “Which corporation decides legislation?”
Wilkes held a white sign that said, “People’s needs over corporate greed.”
The two are part of the Occupy Columbia movement, an evolving group who have settled in at the State House, creating a protest culture of sharing and open dialogue.

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Bishop Richard [Chartres], for his part, made clear that he was not about to issue detailed policy prescriptions for the world of finance: “The church doesn’t and shouldn’t claim ordination gives you a tremendously privileged insight into how to solve the euro-zone problems.” Asked whether that implied a difference between himself and his boss, Bishop Richard replied teasingly that he would study the Financial Times article with great respect, given its author’s credentials as a prominent European intellectual. As a proof of the two men’s continuing personal closeness, he cited their common interest in Russian Orthodox theology and culture””a topic on which the number of potential conversation partners is limited.

But despite the chaotic image it presented this week, the Church of England looks more likely to trundle on eccentrically than to break into establishment and anti-capitalist camps. Buildings like St Paul’s are part of the reason. No matter how compelling the demands of the poor and angry, which faction would ever agree to abandon the cathedrals?

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Check it out.

Self-styled as “the premier forum for our international economic co-operation”, the Group of 20’s latest summit failed to live up to its central ambition to create “strong, stable and balanced” global economic growth.

As they arrived in Cannes, the leaders of countries representing 85 per cent of global output found the agenda dominated by political turmoil in Greece and a eurozone crisis too hot for the G20 to handle. They had little success in making progress on their medium-term goals.

The G20 all but admitted that the so-called “Doha round” of trade talks, launched in December 2001, was dead; it produced an action plan for growth and jobs that committed countries to almost nothing they were not already pursuing; and left the international monetary system almost unchanged.

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