giovedì 27 giugno 2013

13 years in jail for scribbling anti-bank messages


California man faces 13 years in jail for scribbling anti-bank messages in chalk

    RT
    June 26, 2013
    Jeff Olson, the 40-year-old man who is being prosecuted for scrawling anti-megabank messages on sidewalks in water-soluble chalk last year now faces a 13-year jail sentence. A judge has barred his attorney from mentioning freedom of speech during trial.
    According to the San Diego Reader, which reported on Tuesday that a judge had opted to prevent Olson’s attorney from ”mentioning the First Amendment, free speech, free expression, public forum, expressive conduct, or political speech during the trial,” Olson must now stand trial for on 13 counts of vandalism.
    In addition to possibly spending years in jail, Olson will also be held liable for fines of up to $13,000 over the anti-big-bank slogans that were left using washable children’s chalk on a sidewalk outside of three San Diego, California branches of Bank of America, the massive conglomerate that received $45 billion in interest-free loans from the US government in 2008-2009 in a bid to keep it solvent after bad bets went south.
    The Reader reports that Olson’s hearing had gone as poorly as his attorney might have expected, with Judge Howard Shore, who is presiding over the case, granting Deputy City Attorney Paige Hazard’s motion to prohibit attorney Tom Tosdal from mentioning the United States’ fundamental First Amendment rights.
    “The State’s Vandalism Statute does not mention First Amendment rights,” ruled Judge Shore on Tuesday.
    Upon exiting the courtroom Olson seemed to be in disbelief.
    “Oh my gosh,” he said. ”I can’t believe this is happening.”
    Tosdal, who exited the courtroom shortly after his client, seemed equally bewildered.
    “I’ve never heard that before, that a court can prohibit an argument of First Amendment rights,” said Tosdal.
    Olson, who worked as a former staffer for a US Senator from Washington state, was said to involve himself in political activism in tandem with the growth of the Occupy Wall Street movement.
    On October 3, 2011, Olson first appeared outside of a Bank of America branch in San Diego, along with a homemade sign. Eight days later Olson and his partner, Stephen Daniels, during preparations for National Bank Transfer Day, the two were confronted by Darell Freeman, the Vice President of Bank of America’s Global Corporate Security.
    A former police officer, Freeman accused Olson and Daniels of “running a business outside of the bank,” evidently in reference to the National Bank Transfer Day activities, which was a consumer activism initiative that sought to promote Americans to switch from commercial banks, like Bank of America, to not-for-profit credit unions.
    At the time, Bank of America’s debit card fees were among one of the triggers that led Occupy Wall Street members to promote the transfer day.
    “It was just an empty threat,” says Olson of Freeman’s accusations. ”He was trying to scare me away. To be honest, it did at first. I even called my bank and they said he couldn’t do anything like that.”
    Olson continued to protest outside of Bank of America. In February 2012, he came across a box of chalk at a local pharmacy and decided to begin leaving his mark with written statements.
    “I thought it was a perfect way to get my message out there. Much better than handing out leaflets or holding a sign,” says Olson.
    Over the course of the next six months Olson visited the Bank of America branch a few days per week, leaving behind scribbled slogans such as ”Stop big banks” and ”Stop Bank Blight.com.”
    According to Olson, who spoke with local broadcaster KGTV, one Bank of America branch claimed it had cost $6,000 to clean up the chalk writing.
    Public records obtained by the Reader show that Freeman continued to pressure members of San Diego’s Gang Unit on behalf of Bank of America until the matter was forwarded to the City Attorney’s office.
    On April 15, Deputy City Attorney Paige Hazard contacted Freeman with a response on his persistent queries.
    “I wanted to let you know that we will be filing 13 counts of vandalism as a result of the incidents you reported,” said Hazard.
    Arguments for Olson’s case are set to be heard Wednesday morning, following jury selection.

    Government of Kenya attacks self-help program



    Government of Kenya attacks self-help program in Mombasa slums

    In an unbelievably heavy handed move, the Government of Kenya last week arrested an American aid worker and five local micro-entrepreneurs for operating a complementary exchange system in a poor suburb of Mombasa.
    The recently launched Bangla-Pesa voucher system is intended to provide additional liquidity that makes it possible for unmet needs of local residents to be satisfied out of their own excess productive capacity. In just two weeks of operation, the amount of goods and services traded among the members of the Bangla-Pesa network increased substantially. Now, the program is shut down and six people are facing seven years in prison.  Why? Is this simply a case of ignorance on the part of government officials, or an attempt to keep poor people poor and dependent upon inadequate or even exploitative systems that are controlled by bankers and politicians ? The answer to that will become clear as this case develops. Your help is needed to get this matter resolved in favor of freedom, justice, and rationality. Here is the official appeal from American aid worker Will Ruddick.
    Dear Friends, Family and Supporters,
    End Africa’s dependence on Aid through Complementary Currencies. Eradicate poverty and keep six people from seven years in prison.
    Click here to support this program and watch our videos.
    Bangla-Pesa, a complementary currency program in one of Kenya’s poorest slums, needs your help. This innovative program gave participants the ability to create their own means of exchange so micro-business owners could trade what they have for what they need. In two weeks, the program already showed great success. But the Central Bank of Kenya has deemed the program illegal and is pursuing a legal battle against its organizers, despite enthusiastic community support.
    These six people face charges that could put them in prison for as much as seven years:
    ·         Alfred Sigo a youth activist.
    ·         Emma Onyango a grandmother and community business owner.
    ·         Rose Oloo a grandmother and community business owner.
    ·         Paul Mwololo a grandfather and community business owner.
    ·         Caroline Dama a mother and volunteer.
    ·         Will Ruddick a new father and program founder.
    We need help raising funds for legal fees and to bring this program back to life so it can help people throughout Africa in expanded form via mobile phones.
    Our goal is to raise 47,000 Euros over the next 47 days.
    Click here to read more and donate:
    http://igg.me/p/bangla-pesa/x/31801
    Spread the word!
    Sincerely,
    Will Ruddick, Bangla-Pesa Program Founder

    What local currencies can achieve ?


    Bristol pound is just one example of what local currencies can achieve

    Councils in the UK and around the world are starting to recognise how local currencies keep money in their areas
    Clifton suspension bridge in Bristol
    In Bristol local businesses can pay their rates in local pounds. Photograph: Paul C Stokes/Getty Images
    The budgets of local authorities are being cut while the needs of their populations remain the same. In this difficult financial environment, borrowing is rising. UK local authorities owed £81.8bn in the financial year 2011-12, costing hundreds of millions in interest on repayments.
    However, borrowing on the money market is not going to do anything for the local economy. Faced with this reality, some councils are discovering that the use of local currencies offers an alternative to more cuts or debt.
    Mayor Georg Moosbrugger from the Austrian village of Langenegg, which issues its own Talente currency, puts it best when he says: "Wherever the money rolls, there it has an effect. Local money doesn't roll very far and so it can get to work in my area."
    The community council can decide which local taxes may be paid in local currency to subsidise the rural economy, keep purchasing power in the region and support cultural and educational organisations as well as solar energy generation. Social enterprises also accept local money in payment for local food, arts and crafts and holiday lets.
    In Britain, local businesses in Brixton and Bristol can pay their rates in local pounds. The local authority uses this income to pay its employees, who then spend it with local businesses. The mayor of Bristol, George Ferguson, takes 100% of his salary in Bristol Pounds (₤B) and the chief executive accepts ₤5,000 of her salary in "local". The city also earns local currency from market traders who use their ₤B earnings to pay their pitch fees.
    Now 50 Lambeth council employees even receive some of their wages in Brixton Pounds through the payroll and so increase spending in the local economy. Leader of Lambeth council, Lib Peck, says the Brixton Pound "has proved to be a really good way to encourage people to think and act locally. It encourages people to shop locally, supports our local businesses and fosters an even greater sense of local pride."
    The Brixton and Bristol Pounds are run by not-for-profit community interest companies, which helps ensure that the local currency is run in the public interest.
    In times of austerity, cities want to attract employers and tourists, but have little cash for marketing. International media coverage of the Brixton and Bristol Pound launches was worth hundreds of thousands of pounds in advertising, and promoted their vibrant and entrepreneurial communities.
    The city of Nantes, France has been even more ambitious. Citizens and businesses will soon be able to earn local currency and use it to offer goods and services, pay for bus tickets, car parking and after-school activities and pay their rates.
    A lot of the pioneering work has already been done. The New Economics Foundation, Tudor Trust, Doen Foundation and Qoin have supported the Brixton and Bristol Pound teams to develop the technology for both e-payments and for circulating notes with full security features.
    The potential of local currencies as an innovative response to austerity and recession is even becoming recognised at European level. A European Union funded project Community Currencies in Action is now helping the public sector to understand the purpose and function of local currencies through a series of pilot projects. They have also established the legal basis for local currencies with the Financial Services Authority. Twenty other UK authorities have shown a serious interest and a number are currently developing local projects.
    Professor Jem Bendell of the University of Cumbria, which offers training for local authorities and others in how to create and scale local currencies, says: "There is a need to experiment with new systems, and replicate what works."
    In the Great Depression of the 1930s many local authorities created their own currencies to help put people back to work. They were eventually closed down by central banks and central governments. But could a more enlightened policy like this work today? Taking this view, local authorities could lead the economic revival of Britain, and some councils are already showing the way.
    John Rogers offers consulting and training about local currencies.
    • Want your say? Email sarah.marsh@guardian.co.uk to suggest contributions to the network.
    Not already a member? Join us now for more comment, analysis and the latest job opportunities in local government.

    E-barter versus fiat money: will central banks survive?

    E-barter versus fiat money: will central banks survive? by marco saba

    mercoledì 26 giugno 2013

    Bank of England on local currencies


    Local Currencies

    A number of ‘local currency’ initiatives have emerged over recent years within particular towns and cities.  Although such schemes are likely to differ as regards their operation and precise terms and conditions, this page gives some general information to help explain the broader context within which they operate.
     
    Frequently asked questions
     
    What are local currencies?
     
    ‘Local’ or ‘complementary’ currency schemes generally aim to promote local economic activity by implementing a payment mechanism (often including physical vouchers) that can be used for purchases from local businesses. The concept is that the payment arrangement encourages consumers to purchase goods and services from local businesses that in turn purchase goods and services from local suppliers, or pay their staff partly with the local currency. The intention is that the scheme creates a ‘positive multiplier’ effect, keeping spending within the local area.
     
    Are local currencies linked to the Bank of England?
     
    Local currencies are independent, local initiatives and are not linked in any way to the Bank of England or to Bank of England notes.  
     
    What is the Bank of England’s role with regard to banknotes?
     
    The Bank of England is the Central Bank of the United Kingdom and as such it is the sole issuer of legal tender banknotes in England and Wales. Banknotes issued by the Bank of England carry the ‘promise to pay’ which signifies the Bank’s undertaking to give full face value for its notes for all time.  If your local bank, building society or Post Office is not willing to accept old series Bank of England notes they can be exchanged at the Bank of England. For more information on how to exchange Bank of England banknotes that have been withdrawn from circulation see the exchanging banknotes page.
     
    The Bank of England also regulates the issuance of banknotes by the seven commercial banks authorised to issue banknotes in Scotland and Northern Ireland.  To ensure that holders of these notes receive a similar level of protection to holders of Bank of England notes, the seven banks are required to hold backing assets to the full value of their notes at all times.  For more information on regulating the issue of Scottish and Northern Ireland banknotes see theScottish and Northern Ireland banknotes page.
     
    Are local currencies legal tender?
     
    No. The only banknotes to have legal tender status in England and Wales are those issued by the Bank of England.
     
    However, legal tender status has a very narrow meaning in relation to the settlement of debt which is of little relevance to most everyday transactions.  All that legal tender means is that if debtors pay in legal tender the exact amount they owe under the terms of a contract, they have good defence in law if they are subsequently sued for non-payment of the debt.  In ordinary day to day transactions, the term ‘legal tender’ has very little practical application.
     
    Although payments backed by a local currency scheme are not legal tender, they may be accepted as a means of payment by the mutual agreement of the parties to the transaction. Acceptance is often restricted to particular geographic areas.
     
    I have seen ‘notes’ issued by local currency schemes – what is the status of these?
     
    Banknotes are payable in Pound Sterling to the bearer on demand.  In England and Wales it is not legal for anyone other than the Bank of England to issue banknotes.  In Scotland and Northern Ireland certain commercial banks are authorised under the Banking Act 2009 to issue banknotes alongside the Bank of England. Scottish and Northern Ireland banknotes are fully backed with Bank of England banknotes, coin or interest bearing accounts with the Bank of England.  No other entity, including the promoters of local currency schemes, may legally issue banknotes.
     
    Local currency schemes often issue paper vouchers that have some similar physical characteristics to banknotes. However whilst the appearance of the vouchers are superficially similar to banknotes the legal form of a voucher is different from that of a banknote. Vouchers typically represent a pre-payment for goods or services from a specified supplier(s) and cannot be redeemed by consumers for cash. These are different to banknotes and the precise nature of the paper vouchers will typically be governed by terms and conditions which should make clear the status of the vouchers and the restrictions on their convertibility with Pound Sterling. 
     
    In the event that a local currency scheme fails, can I receive compensation from the Bank of England?
     
    No. Paper vouchers issued by local currency schemes are similar to vouchers issued by other businesses in that they typically act as a prepayment for goods and services to be provided in the future.  If the scheme provider is unable to supply the goods and services, paid for in advance, the holder of the voucher will have no recourse to the Bank of England or HM Government.
     
    Additionally, local currency paper vouchers are not protected by the Financial Services Compensation Scheme (FSCS) even if the local currency scheme is operated by a financial institution which itself is protected by the FSCS.  The legal position of any local currency paper voucher holder in the event of administration or insolvency will depend upon exactly how the individual scheme has been set up and operated.
     
    While paper vouchers are not covered by the FSCS, deposits held with an authorised deposit taking institution are protected by FSCS, if held by eligible depositors up to a limit of £85,000. For more information on this, please contact the individual scheme or FSCS.

    Greek Bail-Out: 77% went into the Financial Sector


    Greek Bail-Out: 77% went into the Financial Sector


    Attac investigation shows: EU crisis management policy saves banks, not the general population

    Since March 2010, the European Union (EU) and the International Monetary Fund (IMF) have applied 23 tranches comprising €206,9 billion to the so-called "Greek bail-out". They have however provided hardly any documentation on the exact usage of those huge amounts of public funds. ATTAC Austria has therefore put up an investigation on the issue: At least 77% of the bail-out money can directly or indirectly be attributed to the financial sector.

    The results in detail:
    • €58,2 billion (28,13%) were used to recapitalise Greek banks – instead of restructuring the too big and moribund sector in a sustainable way and letting the banks' owners pay for their losses.
    • €101,331 billion (48,98%) went to creditors of the Greek state. €55,44 billion of these were used to repay maturing government bonds – instead of letting the creditors bear the risk for which they had received interest payments before. Another €34,6 billion served as incentive to make creditors agree to the so-called "haircut" in March 2012. €11,3 billion were used in a debt buyback in December 2012, when the Greek state bought back almost worthless bonds from its creditors.
    • €43,7 billion (22,46%) went into the national budget or couldn't be definitively attributed.
    • €0,9 billion (0,43%) were used as Greek contribution to the new bail-out fund ESM.
    "The goal of the political elites is not the rescue of the Greek population but the rescue of the financial sector", Lisa Mittendrein of ATTAC concludes. "They used hundreds of billions of public money to save banks and other financial players – and especially their owners – from the financial crisis they caused."

    Political elites distort public view of "rescue packages"
    These findings refute the position publicly taken by European politicians that it is the Greek population who benefit from the so-called "rescue packages". They are rather the ones paying for the rescue of banks and creditors by suffering from a brutal course of austerity and its well-documented catastrophic social consequences.

    Billionaires and hedge fund benefit
    Among those actually rescued is the multi-billion Latsis clan, one of the richest families in Greece, owning large parts of the state-rescued "Eurobank Ergasias". (1) Speculators benefited, too: During the debt buyback in December 2012, the hedge fund Third Point pocketed €500 million with the aid of European public funds. (2) "When Barroso, the President of the European Commission, labels the so-called Greek bail-out an act of solidarity, you have to ask: Solidarity with whom?", Mittendrein comments. (3)

    Another €34,6 billion in interest payments
    A maximum of €43,6 billion (22,46%) of the so-called "rescue packages" went into the Greek national budget. However, this amount has to be seen alongside other state expenses during the same period which didn't benefit the general population. More than €34,6 billion were yet again paid to creditors as interest payments for outstanding government bonds (2nd quarter 2010 to 4th quarter 2012 (4)). Moreover, the Greek state put another €10,2 billion into military spending (2010 and 2011 (5)). According to insiders, the governments in Berlin and Paris pressure Greece not to cut military spending because that would affect German and French arms companies. (6)

    Not the first bank bail-out
    "The so-called Greek bail-out turns out to be another bail-out for banks and wealthy individuals", Mittendrein says. European banks have already received €670 billion of direct state support (not including guarantees) since 2008. (7) Still, the financial sector in Greece and all over Europe remains unstable. This is once again proven by the recent disbursement of two more tranches dedicated to bank recapitalisations comprising €23,2 billion since December 2012.

    Political elites fail to implement needed regulations…
    The Greek state's haircut hit local banks so hard that the state is forced to go into debt again to save them with a billion-euro bail-out. "In the five years that passed since the financial crash, Europe's politicians have failed to regulate the financial markets and adopt a bankruptcy regime for banks. So taxpayers are still forced to help out in case of losses, while the banks' owners are getting away scot free. The governments have to stop giving this kind of blackmailing opportunity to the financial sector", Mittendrein criticises.

    …and rescue corrupt Greek banking sector
    What's even worse is that billions of bail-out money go to Greek banks even though some of them only meet the official conditions by resorting to dubious methods. In 2012, a Reuters report exposed the banks' scandalous practices of using a Ponzi scheme of offshore companies to shove unsecured loans on to each other. They did this to appear to still be able to attract private capital and thus meet the conditions for state recapitalisation. (8) "While the European and the Greek political elites demand blood and tears from the ordinary Greek people, they turn a blind eye to the secret deals amongst financial oligarchs, who are in fact the main beneficiaries of the bail out money given to Greece”, confirms economist Marica Frangakis, a member of the Athens-based Nicos Poulantzas Institute, and a founding member of ATTAC Hellas.

    Intransparent handling of public funds
    "Our results reveal that the main goal of our governments' crisis management policy since 2008 has been to save the fortunes of the wealthiest. The political elites accept tremendous unemployment, poverty and misery – to save a financial sector beyond remedy. The Austrian government has taken part in this inhuman course of action for years, too", Mittendrein adds. It is furthermore alarming that those in charge at the Troika and the EFSF are barely documenting their handling of public funds. "It is a scandal that the European Commission publishes hundreds of pages of reports but fails to specify where the money went to exactly", Mittendrein explains. "We call upon those responsible to impose real transparency and prove who is actually benefiting from the payments."

    Radical change of policy is overdue
    A radical change of course is overdue in European crisis management policy. "Our governments save European banks and the wealthy with billions and billions of public funds while pretending to their voters that the money is transferred to the Greek population. This has to stop", Mittendrein and Frangakis demand. Banks "too-big-to-fail" have to be split and return to serving public welfare instead of private profits. Creditors and the rich have to pay their share of the crisis' costs while the financial sector must be severely regulated. "After three years of devastation caused by imposed austerity, Greece is in need of real rescue packages that actually reach the general population", Lisa Mittendrein concludes.

    More bizarre details
    Moreover, the investigation conducted by ATTAC brought to light several bizarre details of the so-called "Greek bail-out":
    • Several times, EU and IMF reneged on their announcements and withheld promised disbursements by weeks or even months to put pressure on Greek democracy: in autumn 2011 to prevent a referendum on austerity policy; in May/June 2012 to raise the chances of Troika-friendly parties in the national elections. By withholding promised funds, the Troika forces the Greek government to issue short-term bonds to avoid imminent bankruptcy. Since those "treasury bills", maturing within a few weeks or months, carry a higher interest rate, this actually increases Greek government debt. This serves as further evidence that debt reduction is not the Troika's main interest, but rather a pretext to push forward the destruction of the welfare state and workers' rights.
    • A tranche of €1 billion disbursed in June 2012 was primarily used to finance Greece's compulsory contribution to the EFSF-replacement ESM. Thus, the EFSF financed its own successor – yet not directly but by raising Greek government debt.
    • Klaus Regling, managing director of EFSF and ESM, has switched between politics and the financial sector numerous times during his career. Before joining the EFSF, he worked in turn for the German government, the hedge fund Moore Capital Strategy Group, the European Commission's Directorate-General for Economic and Financial Affairs and the hedge fund Winton Futures Fund Ltd. Regling thus stands as a symbolic example of the intertwining between financial markets and politics which partly explains why the EU's crisis management policy is primarily aimed at saving the financial sector.
    • According to its Annual Accounts, the EFSF's personnel costs amounted to €3,1 million in 2011. (9) According to media reports, 12 people worked for the EFSF in this year, (10) so an average €258.000 was spent per person. Managing director Klaus Regling allegedly earns €324.000 plus extra pay per year (11). People making these amounts of money supervise the reduction of the Greek gross minimum wage to €580 per month (€510 for youths) (12).

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