Rajoy inches toward aid

(Reuters) - Violent protests in Madrid and growing talk of secession in Catalonia are piling pressure on Spanish Prime Minister Mariano Rajoy as he moves closer to asking Europe for rescue money.

 In public, Rajoy has been resisting calls from bankers at home and the leaders of France and Italy to move quickly to request assistance, but behind the scenes he is putting together the pieces to meet the stringent conditions for aid.

With protesters stepping up anti-austerity demonstrations, Rajoy presents painful economic reforms and a tough 2013 budget on Thursday, aiming to persuade euro zone partners and investors that Spain is doing its deficit-cutting homework despite a recession and 25 percent unemployment.

READ MORE:  http://www.reuters.com/article/2012/09/26/us-spain-rajoy-idUSBRE88P09F20120926

State Review of Regulations Ignores Deeper Concerns

Governor Markell is making much of his Executive Order 36 to hold public hearings on state regulations to identify the existing regulations that are outdated, inconsistent, or no longer serve their purpose and get them eliminated.  CRI believes this order undermined proposed legislation to make more substantive changes to the regulatory process; changes desperately needed since Delaware needs new jobs but ranks a disappointing 43^rd in a CNBC survey on business friendliness.

 

This is a one-time review that leaves two of the biggest agencies, DNREC and DELDOT, until after the election.  No regulations initiated in the last three years will be included.  In other words, no regulation passed under Governor Markell's watch will be reviewed.  Only the regulations will be discussed with no questions on the underlying legislation allowed.  No requirement changes suggested by the public will be made and there will be no report on the outcome for a year, after the next legislative session ends. 

 

READ MORE:  http://www.caesarrodney.org/index.cfm?ref=30200&ref2=325

Ori Feibush, Philadelphia Real Estate Developer, in Hot Water After Refurbishing City's Vacant Lot

A Philadelphia businessman took $20,000 from his own pocket to transform a trash-filled city-owned lot overgrown with weeds into a beautiful outdoor mini-park. Long-frustrated neighbors sang his praises for his deed -- but the city calls him a trespasser and is threatening to take him to court, the Philadelphia Daily News reported.


Ori Feibush (pictured - see link), a real estate developer, had tried to buy the neglected 1,600-square-foot lot for years, but the city wouldn't let him. According to ABC News, Feibush was preparing last month to open his own coffee shop adjacent to the rundown lot -- with its cracked and broken sidewalks -- and that's when he decided to take matters into his own hands.

"I didn't wake up one morning and spend tens of thousands of dollars to remove blight that was a danger to residents and customers," he told ABC News.

Feibush did go to the Philadelphia Redevelopment Authority to reveal his plans for the space before initiating the $20,000 venture. He said that the agency told him that it would take care of cleaning the lot and that he did not have permission to enter it.

READ MORE:   http://realestate.aol.com/blog/2012/09/19/ori-feibush-philadelphia-real-estate-developer-refurbished-vacant-lot/?icid=maing-grid7|main5|dl18|sec1_lnk2%26pLid%3D208768/?ncid=txtlnkusaolp00000058?test=latestnews

Romney May Be the End of the Line for the Republican Establishment

A Commentary By Scott Rasmussen  

Mitt Romney's comments about 47 percent of Americans being dependent on government and locked in to vote for President Obama highlight a fundamental reality in American politics today: The gap between the American people and the political class is bigger than the gap between Republicans and Democrats in Washington, D.C.

Romney's remarks are the GOP equivalent of Obama's notorious comments about small-town Pennsylvania voters bitterly clinging to their guns and religion.

Both Romney and Obama highlighted the condescending attitude that political elites hold of the people they want to rule over. A National Journal survey found that 59 percent of political insiders don't think voters know enough to have meaningful opinions on the important issues of the day. That's a handy rationalization for those who want to ignore the voters and impose their own agenda. 

In the nation's capital, this gap creates bigger problems for Republicans than Democrats. Democratic voters tend to think that their representatives in Congress do a decent job representing them. That's because Democrats are a bit more comfortable with the idea of government playing a leading role in American society. However, 63 percent of Republican voters believe their representatives in Washington are out of touch with the party base.

Establishment Republicans in Washington broadly share the Democrats' view that the government should manage the economy. They may favor a somewhat more pro-business set of policies than their Democratic colleagues, but they still act as if government policy is the starting point for all economic activity.

Republican voters reject this view. They are more interested in promoting free market competition rather than handing out favors to big business. They detest corporate welfare and government bailouts, even though their party leaders support them.

The GOP base sees government as a burden that weighs the private sector down rather than a tool that can generate growth if used properly. Ninety-six percent of Republican voters believe that the best thing the government can do to help the economy is to cut spending and free up more money for the private sector.

The Republican base is looking for someone like a 21st century Ronald Reagan, who will display his faith in the American people. The Washington Republicans are more comfortable with politicians like George W. Bush, Bob Dole, John McCain and Mitt Romney. Though the establishment has dominated the party since Reagan left the White House, the 2012 election could well be the end of the line.

If Romney loses in November, the Republican base will no longer buy the electability argument for an establishment candidate. From the view of the base, the elites will have given away an eminently winnable election. Someone new, from outside of Washington, will be the party's nominee in 2016.

If Romney wins and does nothing to change the status quo, the economy will falter. He will end up as the second straight one-term president, and the nation will desperately be searching for an authentic outsider in 2016.

If he wins the White House, the only way for Romney to succeed will be to side with the nation's voters and throw out the club in Washington. That will be great news for the country but bad news for political insiders on both sides of the partisan aisle.

To find out more about Scott Rasmussen, and read features by other Creators Syndicate writers and cartoonists, visit www.creators.com.   

Some state employees are more equal than others

The on-going analysis of the Transparent Delaware data on state payroll continues to raise puzzling results. For this round, CRI compared the total compensation of state employees in 2008 and 2010 and found that some state employees are treated far more generously than others with regard to supplemental pay. 

 

For each individual employee, the state records the annual salary, overtime pay and “other” pay. Together, overtime pay and “other” pay are considered supplemental pay. “Other” pay is a catch all for a variety of reimbursements including shift differential, holiday pay, uniform allowances, and other such things.

 

In the private sector supplemental pay, excluding bonuses, averages 2.8% of wages plus benefits. Approximately 10% of private civilian workers receive supplemental pay. Supplemental pay to active Delaware state employees averages 6.5% of wages plus benefits and is received by 68% of all state workers. For 2010 supplemental pay added more than $146 million to the approximately $1.6 billion of state salaries…a boost of over 9%.

 

READ MORE:  http://www.caesarrodney.org/index.cfm?ref=30200&ref2=324

Karl Rove: Obama 'In Desperate Shape'

By: Greg McDonald

Political strategist Karl Rove Wednesday said recent polls show President Barack Obama in "desperate shape" in some key states he carried in 2008 and urged Republicans not to be discouraged by polls suggesting Mitt Romney has been wounded too severely by campaign missteps to recover.

 

"The swing state poll shows the president in desperate shape in territory he carried with ease in 2008," Rove said told Fox News' Neil Cavuto Wednesday evening, referring to a recent USA Today/Gallup poll showing Obama up by 48 percent to 46 percent over Romney.  

 

Rove, a Fox News contributor and the founder of the Republican super PAC Crossroad GPS, said a closer look at the poll, however, indicates trouble ahead for the president in many of the 11 key battleground states when compared to a similar poll from the 2008 presidential race.

 

READ MORE:  http://www.moneynews.com/StreetTalk/World-Economy-perfect-storm/2012/09/07/id/451120?s=al&promo_code=1002D-1

 

Tax Policy Center analysis details the '47 percent'

GOP presidential nominee Mitt Romney’s comment that 47 percent of voters pay no income tax appears to come from a study by the nonpartisan Tax Policy Center.

The most recent study by the Center, in 2011, found that 46 percent of taxpayers would not be eligible to pay the federal individual income tax either because of their low income or owing to specific tax breaks.

But in 2009, it estimated that threshold was set at 47 percent.

Of that group, roughly half will not pay taxes because their income is below $26,400.

In 2011, a family with two children making less than $26,400 will pay no federal income tax, the center said. Such a family would get the $11,600 standard deduction, as well as four exemptions of $3,700 each that would reduce its taxable income to zero.

“The basic structure of the income tax simply exempts subsistence levels of income from tax,” the group wrote.

READ MORE:  http://thehill.com/blogs/on-the-money/domestic-taxes/250029-tax-policy-center-analysis-details-the-47-percent

Under Obamacare, Medicare Double Taxation Begins in 2013

(CNSNews.com) - A provision of President Obama’s health care law imposes a second Medicare tax on investment income for Americans classified as wealthy, effectively raising taxes on investment income and taxing investors twice.

The provision, a little-known part of ObamaCare, levies a 3.8 percent Medicare tax on investment income for couples making more than $250,000 or individuals making more than $200,000 a year. The tax is scheduled to go into effect on January 1, 2013.

Currently, the government levies a 2.9 percent Medicare payroll tax on all wages, with half (1.45%) paid by the individual and half by the employer.

Beginning in 2013, couples making more than $250,000 (or individuals making $200,000) will have to pay an additional 3.8 percent Medicare tax on any investment income (unearned income) they might have.

READ MORE:  http://cnsnews.com/news/article/under-obamacare-medicare-double-taxation-begins-2013

Social Security and Disability Payments Hit Annual Records—With Month Left in FY

(CNSNews.com) - By the end of August, according to data released Thursday by the U.S. Treasury, the federal government had already paid out record annual amounts in both Social Security and disability benefits during fiscal 2012—even though there was still a month left in the year.

In fiscal 2011--which ended on Sept. 30, 2011—the federal government paid a total of $591.492 billion in benefits from the Old Age and Survivors Insurance Trust Fund, according to the Monthly Treasury Statement (MTS) for September 2011.

Through just the end of August of this year, according to the MTS, the federal government had paid $594.643 in benefits from the Old Age and Survivors Insurance Trust Fund.

READ MORE:  http://cnsnews.com/news/article/social-security-and-disability-payments-hit-annual-records-month-left-fy

Weekly Jobless Claims Jump; Producer Prices Gassed Up

The number of Americans filing new claims for jobless benefits rose more than expected last week, with several states reporting an increase related to Tropical Storm Isaac.

Michael Nagle | Bloomberg | Getty Images

In a separate report, a sharp rise in gasoline costs drove up wholesale prices last month by the most in more than three years. But outside energy and food, price gains were mild.

Initial claims for state unemployment benefits rose 15,000 to a seasonally adjusted 382,000, the highest in two months, the Labor Department said on Thursday. The prior week's figure was revised up to show 2,000 more applications than previously reported. 

Economists polled by Reuters had forecast claims rising to 370,000 last week.   READ MORE:  http://www.cnbc.com/id/49016234

Gas Sends Wholesale Prices Up The Most In 3 Years

A sharp rise in gasoline costs drove up wholesale prices last month by the most since June 2009. But outside energy and food, price gains were mild.

The producer price index, which measures price changes before they reach the consumer, jumped 1.7 percent in August, the Labor Department said Thursday. The increase was mostly because gas prices soared 13.6 percent, the biggest gain in three years.

Food prices rose 0.9 percent, driven up by steep increases in the cost of eggs and dairy products.
Excluding the volatile food and gas categories, core wholesale prices rose only 0.2 percent, below July's increase.

In the past 12 months, wholesale prices have increased 2 percent, a mild gain and far below the recent peak of 7.1 percent in July 2011.

READ MORE:  http://www.npr.org/2012/09/13/161058446/gas-sends-wholesale-prices-up-the-most-in-3-years

Why is Putin stockpiling gold?

Commentary: Russia is bulking up its gold reserve

By Brett Arends 

 

I can’t imagine it means anything cheerful that Vladimir Putin, the Russian czar, is stockpiling gold as fast as he can get his hands on it. 

According to the World Gold Council, Russia has more than doubled its gold reserves in the past five years. Putin has taken advantage of the financial crisis to build the world’s fifth-biggest gold pile in a handful of years, and is buying about half a billion dollars’ worth every month. 

It emerged last month that financial gurus George Soros and John Paulson had also increased their bullion exposure, but it’s Putin that’s really caught my eye. 

No one else in the world plays global power politics as ruthlessly as Russia’s chilling strongman, the man who effectively stole a Super Bowl ring from Bob Kraft, the owner of the New England Patriots, when they met in Russia some years ago. 

READ MORE:  http://www.marketwatch.com/story/why-is-putin-stockpiling-gold-2012-09-05?pagenumber=1

Thousands of Greeks protest against new round of austerity cuts

Protest is first of its kind against new austerity package

THESSALONIKI, Greece, Sept 8 (Reuters) - Thousands of Greeks marched at an annual fair in Greece's second-biggest city on Saturday to protest against a new round of wage and pension cuts demanded by international lenders in exchange for aid to stave off bankruptcy.

The demonstration by about 15,000 trade unionists and leftists was the first major protest against a nearly 12-billion-euro austerity package being readied by Prime Minister Antonis Samaras to appease EU and IMF inspectors who arrived in Athens on Friday to review Greece's reform progress.

A few protesters burned European Union flags while others threw watermelons and peaches in support of struggling farmers, but the largely peaceful protests otherwise passed off without incident as 3,500 policemen looked on.

READ MORE:   http://www.reuters.com/article/2012/09/08/greece-protests-idUSL6E8K81C120120908

Morici: The New Jobs Program - Convince Them They Don't Need a Job

The economy added 96,000 jobs in August, down from 141 in July and not nearly enough to keep pace with population growth.

Winston Davidian | Photodisc | Getty Images

The unemployment rate fell to 8.1 percent only because 581,000 workers quit looking for work and are longer counted in the official jobless tally.

In the weakest recovery since the Great Depression, the entire reduction in unemployment from its 10.0 percent peak in October 2009 has been accomplished through a significant drop in the percentage of adults participating in the labor force—either working or looking for work. 

The most effective jobs program appears to be to convince working-aged adults they don’t need a job. 

Growth slowed to 1.7 percent in the second quarter, as consumers pulled back and the trade deficit on oil and with China continued to drag on demand. The outlook for the second half of the year is not much better. Car sales are stronger than a year ago, but are not likely to improve much further, and housing prices have risen in recent months but on weak volumes.   READ MORE:  http://www.cnbc.com/id/48939391http://www.cnbc.com/id/48939391

   

Recession 'taking hold' in Eurozone, OECD says

PARIS (AP) -- Europe's debt crisis is pushing the 17-country eurozone toward recession and dragging down the global economy, the Organization for Economic Cooperation and Development said Thursday.

Even growth in traditional economic powerhouse Germany is slowing, and the OECD's interim assessment said that Europe's largest economy could slip into recession by the end of the year.

"The negative elements of the global economy ... stemming mostly from Europe are there and they are somewhat stronger than they used to be a few months ago," OECD Chief economist Pier Carlo Padoan told reporters.

READ MORE:  http://hosted.ap.org/dynamic/stories/W/WORLD_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-09-06-05-13-00http://hosted.ap.org/dynamic/stories/W/WORLD_ECONOMY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-09-06-05-13-00

Global crisis moves East as China suffers rapid downturn

China’s industrial output is contracting at the fastest pace since the depths of the global financial crisis, with knock-on effects spreading across the Far East. 

 

“It just keeps getting worse,” said Alistair Thornton and Xianfang Ren from IHS Global Insight. “The government has underestimated the pace of the slowdown and is behind the curve.”

The HSBC/Markit manufacturing index for China fell to 47.6 in August, the lowest since the onset of Great Recession in late 2008. Inventories are rising. The index for new export orders fell to the lowest since March 2009. “Beijing must step up policy easing to stabilise growth,” said Hongbin Qu from HSBC.

China’s official PMI manufacturing index – weighted to big companies – also fell through the contraction line of 50, though services are holding up better.

Evidence of a hard landing over the summer is becoming clearer. Rail volumes fell 8.2pc in July from a year before. The Japanese group Komatsu said its exports of hydraulic excavators to China – a proxy gauge for Chinese construction – fell 48pc in August from a year before.

READ MORE:  http://www.telegraph.co.uk/finance/economics/9518859/Global-crisis-moves-East-as-China-suffers-rapid-downturn.html

 

Fears Rising, Spaniards Pull Out Their Cash and Get Out of Spain

It is, Julio Vildosola concedes, a very big bet.

Christopher Groenhout | Lonely Plant Images | Getty Images

After working six years as a senior executive for a multinational payroll-processing company in Barcelona, Spain, Mr. Vildosola is cutting his professional and financial ties with his troubled homeland. He has moved his family to a village near Cambridge, England, where he will take the reins at a small software company, and he has transferred his savings from Spanish banks to British banks.

“The macro situation in Spain is getting worse and worse,” Mr. Vildosola, 38, said last week just hours before boarding a plane to London with his wife and two small children. “There is just too much risk. Spain is going to be next after Greece, and I just don’t want to end up holding devalued pesetas.”

READ MORE:  http://www.cnbc.com/id/48889555

Robert Shiller On Housing Bubble: "Are We Off To The Races Again?"

Even as we unwind from the biggest housing crash in history, a renowned economist is warning a new housing mortgage bubble could be dangerously brewing.

In a riveting interview on Fox Business, Robert Shiller, the famed economist who invented the Case-Shiller index, widely considered the nation's most accurate barometer of home sales, said he was alarmed by the bubble-like characteristics occurring in areas around the country.

"I think in cities like Phoenix and San Francisco we might be seeing some pretty big things developing," Shiller said.

"These things take you by surprise. Bubbles occur in the least optimal times. That's because people want to buy before the news. So, in the midst of the recession you could start a bubble."

In July, the median price for new homes sales in the San Francisco Bay hit its highest level since August of 2008. And reports indicate that private equity and hedge fund speculators have been buying up foreclosed properties in record amounts, driving prices higher.

READ MORE:  http://moneymorning.com/ob/economist-robert-shiller-on-housing-bubble-are-we-off-to-the-races-again/

Upscale Ruddertowne rebuild gets under way

Model opens for million-dollar condos in Dewey Beach

DEWEY BEACH — By next summer, the vast parking lot that fronted Ruddertowne will be replaced by a sleek five-story building, with large swaths of glass facing Del. 1, topped by million-dollar condominiums.

 

On Wednesday, the company developing the project, Dewey Beach Enterprises, released a new image of how the hotel-condominium complex will look and gave real estate brokers a sneak peek at a model condo unit, complete with iPad-controlled climate system. The model unit opens today for viewing by appointment.

Jim Baeurle, one of the project’s three owners, said the Hyatt-branded hotel and 12 upper-floor condominium units are on schedule to open Memorial Day. A second phase of construction will demolish the existing Ruddertowne complex of restaurants, bars and shops in September 2013 and replace it with a new mixed-use building set to open by summer 2014.

READ MORE:  http://www.delawareonline.com/article/20120830/BUSINESS12/308300065/Upscale-Ruddertowne-rebuild-gets-under-way?odyssey=mod|newswell|text|Home|s&nclick_check=1