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ANALYSIS: Brexit vote a sign U.K. ‘longing for a time and place that never was’

ANALYSIS: Brexit vote a sign U.K. ‘longing for a time and place that never was’

‘Free movement of people is a major point of European integration,’ says political scientist

European Union leaders said Friday that the U.K. should begin the process of leaving the EU as soon as possible. It's expected that some countries will take a tough approach in negotiations over new trade deals, which will take at least two years to complete.

European Union leaders said Friday that the U.K. should begin the process of leaving the EU as soon as possible. It’s expected that some countries will take a tough approach in negotiations over new trade deals, which will take at least two years to complete. (Neil Hall/Reuters)

If it’s difficult to understand why the United Kingdom would vote to leave the European Union, spawning deep uncertainty about what happens next on any number of fronts, look no further than immigration.

The Brexit result was, in large part, a reaction to growing anxieties over migration to the U.K., realistic or not.

Immigration was a top priority for voters in the Leave camp, according to pre-referendum polling, and Leave leaders like the U.K. Independence Party’s Nigel Farage and former London mayor and likely next prime minister Boris Johnson have been clear on their position that “taking back control” of the U.K.’s borders is critical to future economic health.

It was a deliberate strategy to target migrants and the nostalgic whims of Britons “longing for a time and place that never was,” said Geoff Smith, professor emeritus of history at Queen’s University in Kingston, Ont.

A pro-European Union protester holds a sign near the Palace of Westminster in London on Friday, protesting Britain's decision to leave the European Union.

A pro-European Union protester holds a sign near the Palace of Westminster in London on Friday, protesting Britain’s decision to leave the European Union. (Marc-André Cossette/CBC)

“There’s an unhappiness with the status quo and the tendency has been to blame it on migrants,” Smith said. “They became a scapegoat, and it worked.”

Part of that scapegoating has been to point the finger at migrants for the U.K.’s slow and disappointing recovery from the financial crisis of 2008, as well as for disappearing public services, especially in places outside of major urban centres.

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Venezuela at risk of unravelling as economic, energy turmoil deepens

Venezuela at risk of unravelling as economic, energy turmoil deepens

Violent protests follow decision to ration energy, cut work week for public employeesSo much is riding on the onset of the rainy season in Venezuela, where people across the drought-stricken country lined up on April 28, 2016, to buy food. So far, Caracas is being spared from energy-saving blackouts but its suburbs are increasingly being left in the dark.So much is riding on the onset of the rainy season in Venezuela, where people across the drought-stricken country lined up on April 28, 2016, to buy food. So far, Caracas is being spared from energy-saving blackouts but its suburbs are increasingly being left in the dark. (Marco Bello/Reuters)

A devastating drought has brought Venezuela, already facing economic and energy crises amid simmering political unrest, to the brink and threatens the future of the oil-rich nation.

“Simply put, a natural disaster is making a man-made disaster much worse,” said Donald Kingsbury, a professor of political science and Latin American studies at the University of Toronto.

The “man-made disaster,” in this case, is a heavily petroleum-dependent, state-run economy gutted by the precipitous drop in crude oil prices.

Inflation will reach 720 per cent some time this year, the International Monetary Fund estimates, and the economy will contract another 10 per cent. Food staples and essential medicines are increasingly scarce. The costs of basic goods and services has skyrocketed. Incomes, for those lucky enough to still have one, are stagnant.

Further, crime rates have reached troubling levels. Venezuela now boasts the world’s second-highest per capita homicide rate after Honduras.

Venezuela Goverment March

A man holds a picture of Venezuela’s late president Hugo Chavez, whose time in power still looms large over the country’s politics. (Ariana Cubillos/Reuters)

“People are fed up, from all over the political and social spectrum. At this point, it may not take much for things to erupt,” said Kingsbury.

The worst drought to hit Venezuela in almost half a century could be the catalyst, he said.

 

…click on the above link to read the rest of the article…

Panama Papers only a glimpse into ‘astonishing’ wealth stashed offshore

Panama Papers only a glimpse into ‘astonishing’ wealth stashed offshore

Some estimates suggest between 8 and 14 per cent of global wealth is kept in tax havens

It's estimated that at least $7 trillion and up to $32 trillion is currently kept in holdings in tax havens.

It’s estimated that at least $7 trillion and up to $32 trillion is currently kept in holdings in tax havens. (Eric Gaillard/Reuters)

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The provocative revelations coming out of the so-called Panama Papers are just a glimpse into the murky global network that’s keeping “absolutely astonishing” amounts of money out of public coffers.

The 11.5 million files taken from Panama-based law firm Mossack Fonseca show how the financial elite exploit a secretive system to manoeuvre wealth anonymously and ensure the taxman doesn’t take his cut.

The firm is “the world’s fourth biggest provider of offshore services,” according to the Guardian, with about $42 million in yearly revenue. The documents contain information about more than 214,000 shell companies, trusts and foundations — usually used to hold or transfer financial assets while obfuscating the identity of their real owner — that were registered with the firm.

“That gives a sense of the tremendous scope of this in terms of the flows of money into these largely mysterious companies, and this is only one firm,” says Nicholas Shaxson, an investigative journalist and author of Treasure Islands: Tax Havens and the Men who Stole the World.

It’s difficult to delineate what constitutes a tax haven but it’s generally agreed that, depending on the criteria, there are between 70 and 92 states serving as such worldwide. And there’s an estimated two million shell companies registered with offshore firms in these states.

Panama Papers shell company graphic

Panama Papers shell company graphic

(CBC)

“For a long time, people thought of tax havens as an exotic sideshow of the world economy. Now it’s clear they are absolutely central to it. We’re talking about absolutely astonishing, mind-boggling amounts of money,” Shaxson says.

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New mortgage rule might ‘temper’ hot markets, but not for long

New mortgage rule might ‘temper’ hot markets, but not for long

Starting Feb. 15, mortgage insurers require 10% down payment on portion of mortgages above $500K

Vancouver and Toronto saw real estate prices, particularly for detached and semi-detached home, continue to rise last year. Most other markets saw only modest increases, or even decreases in some cases.

Vancouver and Toronto saw real estate prices, particularly for detached and semi-detached home, continue to rise last year. Most other markets saw only modest increases, or even decreases in some cases. (Mark Blinch/Reuters)

Beginning next week, many Canadians hoping to buy an abode will need to put more cash down before they can call it home. The extra cost might keep some would-be homeowners from mortgages they can’t really afford, but it’s unlikely to leave any lasting impressions on the country’s most “overheated” real estate markets.

The federal government announced in December that mortgage insurers, including the Canada Mortgage and Housing Corporation — by far the largest in the country — will require a 10 per cent down payment on any portion of a mortgage it insures above $500,000 and up to $999,000.

That’s double the five per cent down they currently ask to insure mortgages worth more than 80 per cent of a home’s value.

“We want to make sure we create an environment that protects the people buying homes so they have sufficient equity in their home,” said Finance Minister Bill Morneau at the time, also noting that “elevated” house prices were the driving force behind the move.

The change will “likely impact a broad spectrum of buyers,” though it will surely be the highest hurdle for those who don’t already have a good bit of equity from one home already.

“The majority of the impact is going to be on first-time homebuyers, particularly first-time buyers in the hotter markets,” says Don Campbell, senior analyst at Real Estate Investment Network, an organization that tracks Canadian housing trends.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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