Monday, August 4, 2008

France's Wine Terrorists

By BRUCE CRUMLEY / PARIS

wine terrorism france
A commando vineyard owner empties one of 13 wine tanks filled with Chilian wine in Nimes, France.

Too much wine, it is known, can cause violent behavior. But few have gone as far as the grape growers of France's Languedoc-Rousillon region, the world's biggest wine growing area by volume. Hurting from over-production and cheap imports, and punished lately by the rising cost of gas, a small group of local wine growers has resorted to "wine terrorism" in a violent attempt to shock the French government into helping them.

On July 26, police arrested a vineyard farmer from the region for production and possession of illegal explosives. Apprehended in a hospital where he was being treated for injuries suffered when those explosives unexpectedly detonated, 34-year-old Jérôme Soulère confessed to police that he'd been responsible for the July 2006 bombing of a tax collection office in a neighboring village. He also admitted, police say, to authoring the failed bombing last year of a site the Tour de France was set to pass the following day.

Those incidents are just two of many in a series of violent and destructive acts by local grape growers over the past three years that has targeted public and private buildings, supermarkets, tanker trucks hauling cheap imported wine, and businesses accused of gouging growers with ever-shrinking prices. Claiming responsibility: a clandestine group known as the "CRAV", or "Regional Committe of Viticulture Action".

CRAV's commando operations began with the 2005 bombing of a state agricultural building. CRAV members, or independent sympathizers, have repeatedly carried out bombings or acts of vandalism since, including three acts of property destruction in a 10 day span in May this year alone. In mid-July, CRAV logos were discovered spray-painted at a Narbonne agriculture collective whose vandalized vats had drained nearly 132,000 gallons of wine on the ground — an estimated loss of around $450,000. Last year, it sent a video to newly-elected President Nicolas Sarkozy demanding assistance to the region's grape growers, or "blood will flow".

Quixotic as it may seem to outsiders, the group — and many Langeudoc-Rousillon growers who support its aims while condemning the violence used to achieve them — want the French government to protect them from a rapidly globalizing market. Foreign wine from cheaper producers such as Italy, Spain, Australia, the US, and South America — where costs can be one-fifth of those in France — has saturated the market, and driven down demand for locally-grown grapes. That has depressed the price Langeudoc-Rousillon growers get for their crops by up to 50% in recent years.

With revenues plummeting and production costs on the rise thanks in part to escalating gas prices, local farmers are demanding financial aid from Paris. But European Union rules limit how much help the French government can extend; Brussels has repeatedly urged growers to cut costs by letting nearly 500,000 acres of land lie fallow, and swap plonk production for more expensive, higher quality wine.

That doesn't impress locals. "Many of these vineyard owners are committed to production and investment plans spanning 20 or 30 years," says one member of the regional wine sector who asks not to be named due to "the vivid tension" the situation has created. "These aren't operations that can change strategy or cut production overnight."

Jérôme Soulère's lawyer, Jean-Marie Bourland, doesn't justify his client's avowed acts of destruction, but sympathizes with his client's predicament. "We're in a country where, alas, our leaders don't pay attention to well-behaved, and listen to those who leave them no choice," says Bourland. "Many of these people are agonizing and dying a slow death," he says. "For some, I suppose, posing a bomb is their attempt to pose a question."

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U.S. Economy: Jobless Rate Rises to Four-Year High (Update1)

By Shobhana Chandra

Aug. 1 (Bloomberg) -- The U.S. unemployment rate rose to the highest level in more than four years as employers cut jobs again in July, increasing the threat of a deeper economic slowdown.

Payrolls fell by 51,000, less than forecast, the Labor Department said today in Washington. The jobless rate rose to 5.7 percent, from 5.5 percent the prior month. As recently as April, it was 5 percent. A separate report showed that manufacturing stagnated in July as companies were hit by rising raw-materials costs and slower spending.

``This is further evidence the economy is in a recession, probably a shallow recession,'' said Nariman Behravesh, chief economist at Global Insight Inc. in Lexington, Massachusetts, referring to rising joblessness. ``It will be a major drag on consumer spending.''

The last time unemployment climbed so much in three months was at the end of the last U.S. recession in 2001. Payroll cuts combined with decreasing property values, stricter lending rules and near-record energy prices to send consumer confidence levels close to the weakest in 16 years in July.

Cutbacks at UAL Corp. and Starbucks Corp. signal firings are spreading beyond builders and manufacturers as raw-materials costs soar. General Motors Corp., which today announced a second-quarter loss of $15.5 billion, may eliminate about 5,000 U.S. jobs by year-end, people familiar with the plan said this week.

Payroll declines spanned transportation, retailing, manufacturing and temporary services industries, the Labor figures showed.

Treasuries, Stocks

Stocks dropped and Treasuries were little changed. The Standard & Poor's 500 Stock Index fell 0.6 percent at 4:14 p.m. in New York, to 1,260.3. Yields on benchmark 10-year notes were at 3.93 percent from 3.95 percent late yesterday.

The Institute for Supply Management's factory index fell to 50, a higher reading than forecast, from 50.2 in June, the Tempe, Arizona-based group said today. A reading of 50 is the dividing line between expansion and contraction. The Commerce Department reported construction spending dropped 0.4 percent in June.

Today's unemployment figures reinforce the case for the Federal Reserve to hold off on any interest-rate increase until next year, economists said.

The Fed's ``hands are tied, there is nothing they can do with regard to this,'' said Kathleen Stephansen, director of global economics at Credit Suisse Holdings USA Inc. in New York in an interview with Bloomberg Radio.

Revisions added 26,000 to payroll figures previously reported for May and June. Economists had projected payrolls would drop by 75,000 after a 62,000 decline the prior month, according to the median of 80 forecasts in a Bloomberg News survey. The jobless rate was forecast to rise to 5.6 percent.

Losses So Far

The July cuts bring the total drop in payrolls so far this year to 463,000.

Democratic presidential candidate Barack Obama plans to announce today an emergency economic plan that would impose a windfall profit tax on oil companies to pay for rebate checks of $1,000 to families and $500 to individuals. He also backs a $50 billion stimulus package, including funds for bridge and road maintenance, intended to save 1 million jobs.

Senator John McCain, the Republican candidate, criticized Obama for advocating higher taxes. ``There is no surer way to force jobs overseas than to raise taxes,'' McCain said.

The National Bureau of Economic Research, the official arbiter of U.S. contractions, tracks payrolls, sales, incomes, production and gross domestic product in making the recession call. The group defines downturns as a ``significant'' decrease in activity over a sustained period of time, and usually takes six to 18 months to make a determination.

Recession Call

The economy shrank at the end of 2007 and grew less than forecast in this year's second quarter, figures from the Commerce Department showed yesterday. Some economists said this indicated the U.S. slipped into a recession late last year.

``The economy is limping along right around zero, slightly positive,'' said former St. Louis Fed President William Poole in a Bloomberg Television interview today.

Fed policy makers will probably keep their benchmark rate at 2 percent when they meet on Aug. 5, futures prices show.

More Americans filed initial claims for unemployment benefits last week than at any time in over five years, Labor reported yesterday. Consumer confidence surveys have indicated that Americans, growing more pessimistic about job prospects, may trim spending.

Starbucks Cuts

Starbucks, the world's largest chain of coffee shops, this week said it'll cut another 1,000 jobs as sales slump. The Seattle-based company on July 1 announced plans to eliminate as many as 12,000 positions worldwide.

Factory payrolls fell 35,000 after declining by the same amount in June. Economists had forecast a drop of 40,000. The decrease included a drop of 3,000 jobs in auto manufacturing and parts industries.

July announcements at airlines included 7,000 cuts at UAL's United Airlines, and 6,840 at American Airlines parent AMR Corp.

The protracted housing slump and resulting credit crisis were also reflected in today's jobs report. Construction payrolls declined 22,000, the smallest drop since October, after decreasing 49,000. Payrolls at financial firms were unchanged after declining 13,000 the prior month.

Services Jobs

Service industries, which include banks, insurance companies, restaurants and retailers, subtracted 5,000 workers, the first decline since March. Retail payrolls decreased by 16,500 after a drop of 6,300.

Government jobs increased by 25,000, the 12th month of gains in public payrolls, after an increase of 43,000.

The average work week shrank to 33.6 hours from 33.7 hours. Average weekly hours worked by production workers were unchanged at 41, and overtime was also unchanged at 3.8 hours. That brought the average weekly earnings up by 22 cents to $606.82 in July.

Workers' average hourly wages rose 6 cents, or 0.3 percent, to $18.06, matching economists' forecasts.

Sealed Air Corp., the maker of Bubble Wrap packaging, said this week it plans to eliminate 900 to 1,000 jobs globally after second-quarter profit fell because of rising costs to make plastics.

``We certainly are facing a challenging environment in 2008,'' Chief Financial Officer David Kelsey said in a July 30 telephone interview.

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Md. mayor's dogs killed by SWAT after cops deliver pot

Welcome Digg readers! Want to learn more about this story? The Washington Post has an update here.

BERWYN HEIGHTS, Md. — A SWAT team raided the home of a Washington, D.C.-area mayor, killing his two black Labrador retrievers and seizing an unopened package of marijuana delivered there.

Prince George's County Police said Berwyn Heights Mayor Cheye Calvo brought a 32-pound package of marijuana into his home that had been delivered by officers posing as delivery men. The Tuesday evening raid was conducted by county police narcotics officers and a sheriff's office SWAT Team.

The package was addressed to Calvo's wife, Trinity Tomsic. His mother-in-law had asked the supposed delivery men to leave the package outside. Calvo has not been charged, though police said he, his wife and his mother-in-law are "persons of interest" in an ongoing investigation.

"We never opened the box. We have nothing to do with this box," Calvo said.

Sheriff's office spokesman Sgt. Mario Ellis says deputies "apparently felt threatened" when they shot the dogs.

Calvo said officers entered about 7:30 p.m., first shooting 7-year-old Payton. They then pursued 4-year-old Chase, who ran away and was shot by police from behind, he said.

Calvo said he doesn't have any idea how the package ended up at his house. He called the raid "the most traumatic experience" of his life.

Calvo, who called his town "Mayberry inside the Capital Beltway," gets a small stipend as mayor and works at the SEED Foundation, a nonprofit that runs public boarding schools for at-risk students. His wife works as a state finance officer.

"These were two beautiful black Labradors who were well-known in the community. We walked them twice a day; little kids knew their names and would come up to them and pet them," he said.

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