Mugabe "fighting extradition to the Hague"

I presume that in the wake of his arrest and ongoing extradition battle, the case of a certain Serbian alleged war criminal is sub judice, so I have edited down and altered names, facts, numbers and places in the following Press Association article, using alternatives plucked at random.

Mugabe fights crimes extradition

1 day ago

Former Zimbabwean leader Robert Mugabe is battling extradition from Zimbabwe to the Netherlands, where he faces trial for genocide.

Mugabe's lawyers have been given three days to appeal against the extradition ruling by a Zimbabwean judge.

If the extradition goes ahead he will stand trial at the International Criminal Tribunal in The Hague on war crimes charges - including masterminding the massacre of thousands of Ndebele in Matabeleland during the liberation war of the 1980s.

Meanwhile, the arrest of the former Zimbabwean leader could help pave the way for Zimbabwe finally to join the European Union, Foreign Secretary David Miliband signalled.

Attending a meeting of the EU foreign ministers in Brussels, Mr Miliband said that the actions of the Zimbabwean government "bodes very well for long-term relations".

Mugabe was arrested while travelling on a bus in Harare, Zimbabwe. The one-time education lecturer had been practising as a tutor in legal studies during his period as a fugitive from international justice.

The Financial Times reports British and US intelligence helped trap Mugabe. The newspaper says they co-operated with Zimbabwean intelligence services, using both signals and human intelligence to track him down.

Mugabe's lawyer said his client was in good spirits but was not co-operating with police.

The hunt for Mugabe's right-hand man, Emmerson Mnangagwa, continues.

Now aged 61, his whereabouts are not known, but is believed that he could be hiding in Zimbabwe with the help of hardliners in the police and military and Mashona loyalists.

Mish: "The entire US banking system is insolvent."

Mish gives us a long list of bad news; the last item is, arguably, the worst:

Of the $6.84 Trillion in bank deposits, the total cash on hand at banks is a mere $273.7 Billion. Where is the rest of the loot? The answer is in off balance sheet SIVs, imploding commercial real estate deals, Alt-A liar loans, Fannie Mae and Freddie Mac bonds, toggle bonds where debt is amazingly paid back with more debt, and all sorts of other silly (and arguably fraudulent) financial wizardry schemes that have bank and brokerage firms leveraged at 30-1 or more. Those loans cannot be paid back.

What cannot be paid back will be defaulted on. If you did not know it before, you do now. The entire US banking system is insolvent.

Big rewards for corporate failure

Wikipedia reports that chief executive Angelo Mozilo cashed in over $400 million (about a third of it in 2006/7) in Countrywide Financial stock before the failing lender's purchase by Bank of America this month. Karl Denninger's latest dramatic video presentation says, in effect, that bankers looted the system for personal gain and are now trying to get the taxpayer to foot the bill.

Investment wise owl Christopher Fildes has long advocated that, if they expect a bonus when things go well, directors should pay a "malus" when the company suffers. The French already use a bonus/malus system as a stick-and-carrot for car drivers.

Maybe then I'd be more reconciled to gross inequalities of wealth.

New: UK private schools fully-funded by the State

A friend has just sent me this article, originally from The Economist (14 June 2008). It's about the private-school revolution in Sweden, which is now coming here (starting in Richmond).

I've often wondered what the education system does with all the money - £6,000 a head times 30 children (if you're an English or maths teacher) = £180,000, but the classroom teacher's standard pay and pension might only use £30k-£40k a year.

Here's the website for the Swedish outfit trying their luck with a couple of academies in Greater London.

In praise of Patrick O'Flynn

This wide-ranging article by the Daily Express' chief political commentator covers many aspects of the broad crisis that led me to start blogging. My interest is not money per se, but about the fate of our country, and here Patrick O'Flynn unrolls a map of our problems, including:

• The rise of the East
• The growing power of foreign authoritarian regimes
• The purchase of British enterprises by foreign sovereign wealth funds, and the consequent export of our future dividend income
• Increasing foreign-held UK public debt (again, more income exported)
• Our vulnerability to energy repricing, and inadequate energy security
• Inflation in food and fuel
• Our unbalanced national budget, what with the cost of unemployment, and rising costs in other social benefits such as the NHS
• Inefficiency in the public sector
• The UK's squandering of its North Sea oil opportunity (cf. Norway's £300 billion investment fund)
• British economic decline, and our deterioriating manufacturing base

He concludes: "...the decade ahead will be full of challenges. Britain will have to aggressively earn its living in the world once more and those with nothing to offer will be offered nothing in return."

Spot on. But it's still tucked away on page 12 in yesterday's paper edition, well after Madeleine McCann and Amy Winehouse. This stuff should be hitting the front page all the time, because long after we've forgotten the celeb victims of today, we'll be counting the cost of our government's political and economic negligence and incompetence.

Gold fever may return

Gold has been in the doldrums for a while, but we're now getting messages about inflation and if Fannie Mae and Freddie Mac are added to the liabilities of the US Government, we could be back in the paper-money world of pre-Revolutionary France as advised by the Scottish gambler, John Law.

The Mogambo Guru gives value, not just in comic entertainment, but also in his useful references. One of them is to Adrian Ash, who points out that gold is now worth less than 2% of world financial assets, whereas at times of "investor stress" (and as late as 1982) it has risen to 20-25%. It may be time to consider the argument for precious metals, not so much as investments as insurance against the severe loss of value of other assets.

The EU and Radavan Karadzic

ITV's News at Ten last night covered the arrest of Karadzic, making the point that his identity and whereabouts have been known to the Serbs for years.

(The archive footage included an infamously misleading shot of Bosnian Muslims behind barbed wire, hauntingly reminiscent of the Nazi concentration camps; both at the time and again now, it was not explained that it was the camera crew that was penned in. Still, dramatic truth and all that.)

Whatever the terrible crimes of this man, the decision by Serbia's new, pro-EU government to "lighten the troika" looks primarily motivated by the desire to re-establish trade and diplomatic links with "Europe." So to me, the real story is the continuing expansion of the new European Empire.

The Balkans are being knocked into shape, or so the empire-builders think. Kosova declared independence in February 2008 (in the teeth of an attempted legal challenge by Serbia) and has been recognised by the USA and many other countries. The 100,000 Serbs in Kosova make up only 5% of the new nation's population, and compared to the 10 million in Serbia itself they are, presumably, of little account politically there, also. Besides, of course, Kosovans are not wolves.

But the question remains, how much more of Europe's former battlegrounds does the EU have the wealth and power to suborn, absorb and control? What will happen when its money runs low? Can its Babel-army sustain the territorial integrity of a hastily-constructed, ramshackle and heterogeneous empire? Will its gourmet diplomats and bibbed lawyers maintain law and reason under its young, yet complex and fuzzy legal and constitutional codes?