The German parliament will vote on Thursday whether to approve the next Greek tranche and the debt-reducing tools agreed Monday night by eurozone finance ministers. The opposition has signaled it will vote in favor, but is sceptical that these measures will work without governments taking losses.
Read more: EUobserver.com / News In Brief / German parliament to decide Thursday on Greek bailout
11/27/12
Syrian-Armenian Filmmaker Released
Filmmaker Avo Kaprealian, who was detained by Syrian authorities, has been released, according to the Facebook page set up by his friends.
Kaprealian was last seen with two of his colleagues with a camera in a public park in Aleppo. He was working on a new film about the humanitarian crisis caused by the Syrian conflict.
Avo Kaprealian was born in Aleppo in 1985. He studied at the Haigazian Armenian Elementary School, then at the Karen Jeppe Armenian College. He graduated from the University of Damascus with a degree in theater and cinema, and worked in various film productions there for a few years before moving back to Aleppo and teaching art and theater at the Akkad Institute. He managed the first public cinema club in the city with a group of friends, and was recognized as one of the most notable filmmakers in the new wave of young artists in Syria.
Read more: Syrian-Armenian Filmmaker Released | Armenian Weekly
Kaprealian was last seen with two of his colleagues with a camera in a public park in Aleppo. He was working on a new film about the humanitarian crisis caused by the Syrian conflict.
Avo Kaprealian was born in Aleppo in 1985. He studied at the Haigazian Armenian Elementary School, then at the Karen Jeppe Armenian College. He graduated from the University of Damascus with a degree in theater and cinema, and worked in various film productions there for a few years before moving back to Aleppo and teaching art and theater at the Akkad Institute. He managed the first public cinema club in the city with a group of friends, and was recognized as one of the most notable filmmakers in the new wave of young artists in Syria.
Read more: Syrian-Armenian Filmmaker Released | Armenian Weekly
Technology Employment: App economy’ is sizzling with potential - Rob Hotakainen and Nancy Dahlberg
Raymond Gonzalez, a Florida International University senior, is developing an iPhone application called Pet Finder that will allow users to browse the dogs and cats at the local animal shelter or request an animal for adoption. He is also part of a team creating mobile apps that track bank failures, issue alerts about earthquakes and organize homework assignments.It’s a well-calculated effort to learn as much as he can about mobile technology as quickly as possible. “My goal is to make all these apps free and open source while using the knowledge gained to build my startup company after graduation,” said Gonzalez, who is majoring in information technology.
Whether he starts his own company or works for someone else, Gonzalez is preparing to be a player in a high-paying, sizzling new industry, one that might provide the United States with a big opportunity to increase its exports in coming years.
While the overall economy still lags, the “app economy” has created nearly 500,000 jobs in the United States since 2007, when there were none.
Companies in the US even worry that the nation isn’t moving fast enough to produce new talent for thousands of unfilled jobs as consumers demand more and more gizmos and gadgets for their smartphones.
Mobile apps developers can expect pay increases of 9 percent next year, among the highest of any jobs, putting them in the range of $92,750 to $133,500 a year, according to a survey that the staffing and consulting firm Robert Half International released last month.
If the United States can maintain its dominance in the industry, many say the app economy could make a big dent in the country’s federal trade deficit. Last year, for example, more than 20 percent of the apps downloaded in China were made by U.S. developers.
Note EU-Digest: Starting today through November 29, in Prague, the Czech Republic - "the Future of Web Apps" conference.
Read more: ‘App economy’ is sizzling with potential - Technology - MiamiHerald.com
Syria Renews Border Attacks as NATO Seeks Missile Sites
Syrian warplanes attacked targets close to the Turkish border for the second consecutive day as North Atlantic Treaty Organization officers arrived to select missile sites to counter President Bashar al-Assad’s forces.
Russia renewed its opposition to NATO’s involvement today, with Deputy Foreign Minister Andrey Denisov telling a Berlin press conference “we don’t like this plan.” The alliance’s aims were unclear: “Who’s threatened? Where’s the threat coming from?” he said. Iran has also opposed the move.
Read more: Syria Renews Border Attacks as NATO Seeks Missile Sites - Businessweek
Court rules Europe rescue fund within law - by Jamie Smyth
Europe’s new permanent rescue fund does not violate EU law and there is nothing to stop member states implementing the treaty, the European Court of Justice has ruled.
The ruling on Tuesday by Europe’s highest court removes a legal threat hanging over the European Stability Mechanism, a €500bn bailout fund created to provide assistance to members of the eurozone in financial difficulty.
“The court holds that its examination has disclosed nothing capable of affecting the validity of decision 2011/199 [to set up the fund],” said the court in its first judgment on the fund.
The ruling, which is likely to set a legal precedent for other legal challenges to the ESM, dismissed a challenge made by Thomas Pringle, a leftwing Irish parliamentarian.
Mr Pringle claimed the ESM unlawfully breaches provisions of the EU treaties concerning economic and monetary policy.
Read more: Court rules Europe rescue fund within law - FT.com
The ruling on Tuesday by Europe’s highest court removes a legal threat hanging over the European Stability Mechanism, a €500bn bailout fund created to provide assistance to members of the eurozone in financial difficulty.
“The court holds that its examination has disclosed nothing capable of affecting the validity of decision 2011/199 [to set up the fund],” said the court in its first judgment on the fund.
The ruling, which is likely to set a legal precedent for other legal challenges to the ESM, dismissed a challenge made by Thomas Pringle, a leftwing Irish parliamentarian.
Mr Pringle claimed the ESM unlawfully breaches provisions of the EU treaties concerning economic and monetary policy.
Read more: Court rules Europe rescue fund within law - FT.com
11/26/12
Global Economy: "Call it as it is" - by Rebecca Solnit
Now is the time to see that most of our problems are the result of the insatiable greed of the very few. And to say so, clearly and repeatedly. It’s the only way to start changing towards reality.
We often speak as though the source of our problems is complex and even mysterious. I’m not sure it is. You can blame it all on greed: the refusal to do anything about climate change, the attempts by the .01% to destroy our democracy, the constant robbing of the poor, the war against most of what is beautiful on this Earth.
Calling lies “lies” and theft “theft” and violence “violence”, loudly, clearly and consistently, is a powerful aspect of political activism. Much of the work around human rights begins with accurately and aggressively reframing the status quo as an outrage. What protects an outrage are circumlocutions, and euphemisms. Change the language and you’ve begun to change the reality or at least to open the status quo to question. Here is Confucius on the rectification of names: “If language is not correct, then what is said is not what is meant; if what is said is not what is meant, then what must be done remains undone; if this remains undone, morals and art will deteriorate; if justice goes astray, the people will stand about in helpless confusion.”
So let’s start calling manifestations of greed by their true name. By greed, I mean the attempt of those who have plenty to get more. Look at the Waltons of Wal-Mart: the four main heirs are among the dozen richest people on the planet, each holding about $24bn. Their wealth is equivalent to that of the bottom 40% of Americans. The corporation Sam Walton founded now employs 2.2 million workers, and the great majority are poorly paid people who routinely depend on government benefits to survive. You could call that Walton Family welfare — a taxpayers’ subsidy to their system. Strikes against Wal-Mart this year protested barbarous working conditions: warehouses that reach 120 degrees, a woman eight months pregnant forced to work at a brutal pace, exposure to pollutants, and the intimidation of those who attempt to organise or unionise.
Read more: Call it as it is - Le Monde diplomatique - English edition
We often speak as though the source of our problems is complex and even mysterious. I’m not sure it is. You can blame it all on greed: the refusal to do anything about climate change, the attempts by the .01% to destroy our democracy, the constant robbing of the poor, the war against most of what is beautiful on this Earth.
Calling lies “lies” and theft “theft” and violence “violence”, loudly, clearly and consistently, is a powerful aspect of political activism. Much of the work around human rights begins with accurately and aggressively reframing the status quo as an outrage. What protects an outrage are circumlocutions, and euphemisms. Change the language and you’ve begun to change the reality or at least to open the status quo to question. Here is Confucius on the rectification of names: “If language is not correct, then what is said is not what is meant; if what is said is not what is meant, then what must be done remains undone; if this remains undone, morals and art will deteriorate; if justice goes astray, the people will stand about in helpless confusion.”
So let’s start calling manifestations of greed by their true name. By greed, I mean the attempt of those who have plenty to get more. Look at the Waltons of Wal-Mart: the four main heirs are among the dozen richest people on the planet, each holding about $24bn. Their wealth is equivalent to that of the bottom 40% of Americans. The corporation Sam Walton founded now employs 2.2 million workers, and the great majority are poorly paid people who routinely depend on government benefits to survive. You could call that Walton Family welfare — a taxpayers’ subsidy to their system. Strikes against Wal-Mart this year protested barbarous working conditions: warehouses that reach 120 degrees, a woman eight months pregnant forced to work at a brutal pace, exposure to pollutants, and the intimidation of those who attempt to organise or unionise.
Read more: Call it as it is - Le Monde diplomatique - English edition
Turkey: Russia warns, Turkish firms avoid crisis-hit EU
Moscow is nervously watching the economic crisis unfolding in the European Union, Russian Prime Minister Dmitry Medvedev said yesterday, ahead of a working visit to France, adding he felt the crisis represented a serious threat to Russia’s own economic performance.
Medvedev’s harsh wording was not limited to economic woes, as he also hit hard at France’s stand on the Syrian rebels.
Medvedev complained to Agence France-Presse in a joint interview with Le Figaro yesterday that EU leaders sometimes lack the “energy and will” to solve their problems amid squabbles over whether to back austerity or growth. “We see this as a very serious threat,” said Medvedev.
This came simultaneously with the eurozone finance ministers’ meeting for the third time in two weeks on immediate funding to avert a threat of bankruptcy for Greece and to deal with the country’s ever-growing mountain of debt. Greece has been waiting since June for a loan installment of 31.2 billion euros ($40 billion) to avoid running out of money sometime around the end of the year. However, no result came out of the meeting before the Daily News went to print yesterday evening.
“We are, to a large extent, dependent on what happens in the economies of the EU,” Medvedev said. The EU states account for half of Russia’s trade volume while Moscow holds some 41 percent of its foreign currency reserves in euros.
Read more: ECONOMICS - Russia warns, Turkish firms avoid crisis-hit EU
Medvedev’s harsh wording was not limited to economic woes, as he also hit hard at France’s stand on the Syrian rebels.
Medvedev complained to Agence France-Presse in a joint interview with Le Figaro yesterday that EU leaders sometimes lack the “energy and will” to solve their problems amid squabbles over whether to back austerity or growth. “We see this as a very serious threat,” said Medvedev.
This came simultaneously with the eurozone finance ministers’ meeting for the third time in two weeks on immediate funding to avert a threat of bankruptcy for Greece and to deal with the country’s ever-growing mountain of debt. Greece has been waiting since June for a loan installment of 31.2 billion euros ($40 billion) to avoid running out of money sometime around the end of the year. However, no result came out of the meeting before the Daily News went to print yesterday evening.
“We are, to a large extent, dependent on what happens in the economies of the EU,” Medvedev said. The EU states account for half of Russia’s trade volume while Moscow holds some 41 percent of its foreign currency reserves in euros.
Read more: ECONOMICS - Russia warns, Turkish firms avoid crisis-hit EU
Russia: Michael McFaul: U.S. wants to further relations with Russia, but "it takes two to tango"
U.S. Ambassador to Russia Michael McFaul gave his first interview to correspondents of Interfax Olga Golovanova and Kseniya Baygarova after the U.S. presidential elections‘ 2012 on vital bilateral issues in U.S.-Russian relations and regional agenda, such as Iran and Afghanistan.
Question: Mr. McFaul, you are an author of ‘reset’. Everybody knows a lot of people in Russia and sometimes in America are a little bit disappointed of ‘perezagruzka’. Do you share this view? Are you disappointed too and will new Obama‘s administration continue the policy of ‘reset’ in our relations?
Answer: Well, from our perspective ‘perezagruzka’ was always about engaging with the Russian government and Russian society to achieve our concrete national interests. We assumed that the Russian government would do the same with us and would never cooperate on an issue unless they thought that it was in their national interests as well. This is a concept that President Obama talks of as win-win outcomes. The only way one can realize win-win outcomes is to have an understanding of each others‘ interests, of each others‘ motivations. And the only way you can facilitate that understanding is to engage. Sometimes it is not well understood that it is not an end in itself. It is a means to these other outcomes. So President Obama - they are not here anymore, there is me playing football with Obama - we used to have photos in here of the various meetings he has had with President Medvedev, Prime Minister Putin, now President Putin. They met last in Mexico, in Los Cabos. I was at that meeting. He is engaged much of his personal time into trying to foster this understanding, so that we could get the outcomes. He created with President Medvedev the bilateral presidential commission again to help increase connections, activities between our two governments. We think that the results have been very positive: the new START Treaty, cooperation on what we call the northern distribution network for supplies to our troops in Afghanistan; Russia is a key partner to us in that process. We think our cooperation on Iran and North Korea has been very robust at the UN Security Council. With respect to Iran both in negotiations but also on sanctions on Security Council [Resolution] #1929. Most recently - I don‘t want to go into everything - the WTO accession for Russia. We worked very closely with the Russian government to make that happen. Concrete outcomes. I think it is fair to say when I hear the critics that we‘ve done less big things in this last year, in 2012, so that the momentum has slowed down. I would say that there are two reasons for that. One is that we‘ve got a lot done, so the things that are left are harder issues. So we‘ve got these other things done. Now on to these other issues. Two, I would say that both your government was focused on domestic issues and election issues here. And so was my president:2012 was an election year. Therefore the president did not devote as much time to foreign policy issues. But now we have a new moment, we‘ll soon have a new administration, and we‘ll now have a better understanding of what can be done together from this kind of strategy or theory that we have in our relationship.
For the complete interview click here: Michael McFaul: U.S. wants to further relations with Russia, but "it takes two to tango" - Interview - Interfax.com
Czech Republic: Interior Ministry selects 8 presidential candidates
 |
| Prague |
The petitions with people's signatures in support of the three candidates include too many invalid data. As a result, their number of signatories sank below the required 50,000, the ministry said on its website. The candidates can file an appeal against the decision with the Supreme Administrative Court (NSS).
The eight registered candidates include three nominated by deputies or senators and five who submitted petitions with more than 70,000 signatures, which prevented their ousting over invalid data.
Fischer and Zeman who are favourites of the election according to public opinion polls also had invalid signatures - more than 10 percent of the total, but they collected many more than required.
The incumbent President Vaclav Klaus's second and final possible five-year mandate expires in early March.
The first round of the country's first direct presidential election is due on January 11-12.
The election might be delayed if some of the eliminated candidates turned to the Constitutional Court that has no deadline for giving its verdict.
Read more: Interior Ministry selects 8 presidential candidates | Prague Monitor
Latvia: Radio show aimed at Latvians abroad plans broadcast on citizenship law - by Andris Straumanis
A new radio program devoted to Latvians abroad plans a live broadcast examining pending changes to the homeland’s Citizenship Law, according to the show’s producers.
The “21.gadsimta latvietis” (The 21st Century Latvian) broadcast is scheduled at 13:05 hours Latvia time on Sunday, Nov. 25. The broadcast will air on Latvian Radio 1 and also will available as a live stream on www.latvijasradio.lv.
Participating in the broadcast will be MP Ingmārs Čaklais, chair of the Citizenship Law Amendments Subcommittee of the Saeima’s Legal Affairs Committee.
Among issues to be addressed during the broadcast will be dual citizenship and whether it will draw children born to mixed marriages back to Latvia, whether dual citizenship will result in an increase in voters who are disloyal to Latvia, and which citizenship will be more important and useful for Latvian citizens abroad.
The amendments to the Citizenship Law, which would include acknowledging dual citizenship for a broad range of individuals, have passed their second reading in the Saeima. A final vote is expected before the end of the year, in part because the amendments are supposed to take effect Jan. 1.
Read more: Radio show aimed at Latvians abroad plans broadcast on citizenship law
The “21.gadsimta latvietis” (The 21st Century Latvian) broadcast is scheduled at 13:05 hours Latvia time on Sunday, Nov. 25. The broadcast will air on Latvian Radio 1 and also will available as a live stream on www.latvijasradio.lv.
Participating in the broadcast will be MP Ingmārs Čaklais, chair of the Citizenship Law Amendments Subcommittee of the Saeima’s Legal Affairs Committee.
Among issues to be addressed during the broadcast will be dual citizenship and whether it will draw children born to mixed marriages back to Latvia, whether dual citizenship will result in an increase in voters who are disloyal to Latvia, and which citizenship will be more important and useful for Latvian citizens abroad.
The amendments to the Citizenship Law, which would include acknowledging dual citizenship for a broad range of individuals, have passed their second reading in the Saeima. A final vote is expected before the end of the year, in part because the amendments are supposed to take effect Jan. 1.
Read more: Radio show aimed at Latvians abroad plans broadcast on citizenship law
Slovenia: Presidential Election: Former PM still in lead
An opinion poll carried by commercial broadcaster Planet TV shows that 69% of the respondents support former Prime Minister Borut Pahor for president, while incumbent Danilo Türk got 31% of the respondents' votes.
The poll was conducted by pollster Episcenter among 930 respondents between 23 and 25 November, a week before the upcoming second round of the presidential election.
Read more: Presidential Election: Former PM still in lead
The poll was conducted by pollster Episcenter among 930 respondents between 23 and 25 November, a week before the upcoming second round of the presidential election.
Read more: Presidential Election: Former PM still in lead
Highway Technolgy: Dutch drivers to test glow-in-the-dark highways
Drivers in the Netherlands could soon be able to see the if road conditions are dangerous even if the weather appears to be safe to drive in.
According to Wired, highway officials are considering using a photo-luminizing powder to make roads an intelligent source of information, allowing drivers to be aware of potential hazards in low light or at night. The ultimate aim of the engineering research project, which is still very much in the early stages of implementation, is to create traffic routes that are an interactive tool for drivers with glow-in-the-dark symbols indicating the current condition or to provide illumination when vehicles pass.
The powder will be charged using sunlight, with enough energy absorbed to power as much as ten hours of highway lighting. Special symbols could be painted on the roads, such as snowflakes, that would be lit up when the temperature drops to a certain point and indicating to drivers that the road could be slippery or alert them to the possibility of black ice.
The innovative idea to turn highways into an interactive information source comes at a time when traffic officials across Europe are looking to save money on highway and street lighting. The UK government has already announced that it intends to dim motorway lights after 9 p.m. in an attempt to conserve energy and cut costs, but the "Smart Highway" could see renewable energy sources used to power dynamic lighting that only reacts when it senses an approaching vehicle.
Read more: Dutch drivers to test glow-in-the-dark highways
According to Wired, highway officials are considering using a photo-luminizing powder to make roads an intelligent source of information, allowing drivers to be aware of potential hazards in low light or at night. The ultimate aim of the engineering research project, which is still very much in the early stages of implementation, is to create traffic routes that are an interactive tool for drivers with glow-in-the-dark symbols indicating the current condition or to provide illumination when vehicles pass.
The powder will be charged using sunlight, with enough energy absorbed to power as much as ten hours of highway lighting. Special symbols could be painted on the roads, such as snowflakes, that would be lit up when the temperature drops to a certain point and indicating to drivers that the road could be slippery or alert them to the possibility of black ice.
The innovative idea to turn highways into an interactive information source comes at a time when traffic officials across Europe are looking to save money on highway and street lighting. The UK government has already announced that it intends to dim motorway lights after 9 p.m. in an attempt to conserve energy and cut costs, but the "Smart Highway" could see renewable energy sources used to power dynamic lighting that only reacts when it senses an approaching vehicle.
Read more: Dutch drivers to test glow-in-the-dark highways
The Netherlands: Four in 10 Dutch households don't have enough savings
Two out of 10 Dutch households do not have enough savings to pay for emergency purchases and a further two out of 10 have no savings at all, according to research by the family spending institute Nibud.
Nibud estimates a couple need at least €4,000 in savings to pay for unexpected items like a new fridge or television, while a family with two children should have €5,000 set aside.
The fact that so many households don't have enough money reserved for emergencies is 'worrying', Nibud says. People on low incomes are least likely to have savings, as are youngsters and people living in rented accommodation.
Read more: DutchNews.nl - Four in 10 Dutch households don't have enough savings
Nibud estimates a couple need at least €4,000 in savings to pay for unexpected items like a new fridge or television, while a family with two children should have €5,000 set aside.
The fact that so many households don't have enough money reserved for emergencies is 'worrying', Nibud says. People on low incomes are least likely to have savings, as are youngsters and people living in rented accommodation.
Read more: DutchNews.nl - Four in 10 Dutch households don't have enough savings
Britain: Mark Carney named Bank of England governor - by Bill Curry and Kevin Carmichael
Mark Carney is leaving the Bank of Canada to become governor of one of the world’s oldest central banks, the Bank of England.
Mr. Carney, the former Goldman Sachs investment banker who took over Canada’s central bank in 2008, will lead the Bank of England starting in July 2013.
"I'm honoured to accept this important and demanding role," said Mr. Carney, who noted that it is a critical time in the British, European and global economies.
Note EU-Digest:Goldman Sachs strikes again.
Read more: Mark Carney named Bank of England governor - The Globe and Mail
Mr. Carney, the former Goldman Sachs investment banker who took over Canada’s central bank in 2008, will lead the Bank of England starting in July 2013.
"I'm honoured to accept this important and demanding role," said Mr. Carney, who noted that it is a critical time in the British, European and global economies.
Note EU-Digest:Goldman Sachs strikes again.
Read more: Mark Carney named Bank of England governor - The Globe and Mail
Political Developments in Europe - by Marc Chandler
There have been several political developments in Europe to note. Although the immediate market impact seems modest, these developments will help shape the ongoing policy response to the financial crisis.
There have been several political developments in Europe to note. Although the immediate market impact seems modest, these developments will help shape the ongoing policy response to the financial crisis
Read more: Political Developments in Europe - Business Insider
There have been several political developments in Europe to note. Although the immediate market impact seems modest, these developments will help shape the ongoing policy response to the financial crisis
Read more: Political Developments in Europe - Business Insider
Free Trade or Protectionism?
Classical Liberal philosopher John Stuart Mill astutely observed in the last century that "Trade barriers are chiefly injurious to the countries imposing them." It is true today as it was then, for the following reasons:
LOST JOBS: Protectionist laws raise taxes (tariffs) on imported goods and/or impose limits (quotas) on the amount of goods governments permit to enter into a country. They are laws that not only restrict the choice of consumer goods, but also contribute greatly both to the cost of goods and to the cost of doing business. So under "protectionism" you end up poorer, with less money for buying other things you want and need. Moreover, protectionist laws that reduce consumer spending power actually end up destroying jobs. In the USA, for example, according to the US Department of Labor's own statistics, "protectionism" destroys eight jobs in the general economy for every one saved in a protected industry.
HIGHER PRICES: Japanese consumers pay five times the world price for rice because of import restrictions protecting Japanese farmers. European consumers pay dearly for EC restrictions on food imports and heavy taxes for domestic farm subsidies. American consumers also suffer from the same double burden, paying six times the world price for sugar because of trade restrictions (to give but one example). The US Semiconductor Trade Pact, which pressured Japanese producers to cut back production of computer memory chips, caused an acute worldwide shortage of these widely used parts. Prices quadrupled and companies using these components in the production of electronic consumer goods, in various countries around the world, were badly hurt.
HIGHER TAXES: Protectionist laws not only force you to pay more taxes on imported goods, but also raise your general taxes as well. This is because governments invariably expand their Customs Department bureaucracies to force compliance with their new rounds of trade restrictions (or in the case of NAFTA, trade regulations). These bureaucrats must be paid. There is also the expense of more red tape and paperwork for trading companies and more harassment of individual travelers passing through the borders.
THE DEBT CRISIS: Western Banks are owed hundreds of billions of dollars by Eastern European and Third World countries. Trade restrictions by Western governments, however, have cut off Western markets for these countries, making it virtually impossible for them to earn the hard currencies necessary to repay their loans. This increases the very real possibility of a collapse of the world banking system.
When the government of Country "A" puts up trade barriers against the goods of Country "B", the government of Country "B" will naturally retaliate by erecting trade barriers against the goods of Country "A". The result? A trade war in which both sides lose. But all too often a depressed economy is not the only negative outcome of a trade war.
Note EU-Digest: Free trade yes but it must be fair trade where everyone is protected against greed by one party or the other.
Read more: SIL -- Free Trade or Protectionism?
LOST JOBS: Protectionist laws raise taxes (tariffs) on imported goods and/or impose limits (quotas) on the amount of goods governments permit to enter into a country. They are laws that not only restrict the choice of consumer goods, but also contribute greatly both to the cost of goods and to the cost of doing business. So under "protectionism" you end up poorer, with less money for buying other things you want and need. Moreover, protectionist laws that reduce consumer spending power actually end up destroying jobs. In the USA, for example, according to the US Department of Labor's own statistics, "protectionism" destroys eight jobs in the general economy for every one saved in a protected industry.
HIGHER PRICES: Japanese consumers pay five times the world price for rice because of import restrictions protecting Japanese farmers. European consumers pay dearly for EC restrictions on food imports and heavy taxes for domestic farm subsidies. American consumers also suffer from the same double burden, paying six times the world price for sugar because of trade restrictions (to give but one example). The US Semiconductor Trade Pact, which pressured Japanese producers to cut back production of computer memory chips, caused an acute worldwide shortage of these widely used parts. Prices quadrupled and companies using these components in the production of electronic consumer goods, in various countries around the world, were badly hurt.
HIGHER TAXES: Protectionist laws not only force you to pay more taxes on imported goods, but also raise your general taxes as well. This is because governments invariably expand their Customs Department bureaucracies to force compliance with their new rounds of trade restrictions (or in the case of NAFTA, trade regulations). These bureaucrats must be paid. There is also the expense of more red tape and paperwork for trading companies and more harassment of individual travelers passing through the borders.
THE DEBT CRISIS: Western Banks are owed hundreds of billions of dollars by Eastern European and Third World countries. Trade restrictions by Western governments, however, have cut off Western markets for these countries, making it virtually impossible for them to earn the hard currencies necessary to repay their loans. This increases the very real possibility of a collapse of the world banking system.
When the government of Country "A" puts up trade barriers against the goods of Country "B", the government of Country "B" will naturally retaliate by erecting trade barriers against the goods of Country "A". The result? A trade war in which both sides lose. But all too often a depressed economy is not the only negative outcome of a trade war.
Note EU-Digest: Free trade yes but it must be fair trade where everyone is protected against greed by one party or the other.
Read more: SIL -- Free Trade or Protectionism?
11/25/12
Why a Global Economic Rebound Will Be Short-lived - by Panos Mourdoukoutas
The global economy may be ready to turn the corner, according to recent economic reports coming out from China, Germany, and the US.
In China, the HSBC Flash Manufacturing Index (PMI) rose to a 13-month high of 50.4 in November. Separately, sales of washing machines, air conditioners and refrigerators increased by 6.5 percent, 0.5 percent and 22 percent, respectively, year on year in September. In Germany, business confidence jumped to 101.4 in November from 100 in October, well ahead of expectations of 99.5, while exports boosted growth. In the US, existing housing sales, housing starts, and initial claims and leading economic indicators beat market expectations.
The trouble, however, is that this rebound, if it is for real, may be short-lived. Globalization faces several threats that will put the breaks to future growth. Some of the obstacles include:
1. Rise of re-regulation in the US. Since the early 1980s, the US has been the champion of deregulation, a tailwind for American industries. In the aftermath of the subprime crisis, the US economy is on a re-regulation track that burdens corporations with additional costs. Most notably, Obamacare is imposing an enormous cost on smaller corporations, the engine of job growth.
2. Proliferation of the European sovereign debt crisis. This threatens to culminate in a “credit event,” the failure of a major financial institution or a country to stand up to its debt obligations by missing an interest/principal payment. In a highly interdependent world, such an event could fuel a domino (Lehman-style) effect, with big losses for major credit institutions. As Rogoff and Reinhart put it in an interview in this weekend’s Barron’s: “Credit events don’t end with Greece. This is not a Greek problem. This is a European problem. So be prepared fo a lot of volatility surrounding future credit events.”
3. The dismantling of “soft socialism” — drastic cuts in a European welfare system, which has boosted consumer spending and reinforced social peace for six decades.
4. The escalation of the Middle-East crisis threatens to turn into a military confrontation between Iran and Israel and Turkey and Syria in an already unstable era.
5. The China-Japan conflict over territorial disputes that threatens to turn into an economic war, if not to an open military confrontation in the world’s fastest growing region. Japanese multinationals like Honda (NYSE:HMC), Toyota (NYSE:TM) and Nissan (OTC:NSANY) have already seen the impact from this conflict.
Already, a number of US multinationals, from IBM (NYSE:IBM) to General Motors (NYSE), Intel (NASDAQ), and Federal Express (NYSE:FDX), Caterpillar (NYSE:CAT), and Ford (NYSE:F) have been reporting lower earnings because of a global slow-down. Could anyone imagine what would happen to the earnings of these companies should any of these threats gets out of control?
The bottom line: As long as the world is burdened with debt, government policies that constrain domestic market growth, and old and new animosities that constrain international trade, any rebound is doomed to be short-lived.
Read more: Why a Global Economic Rebound Will Be Short-lived - Forbes
In China, the HSBC Flash Manufacturing Index (PMI) rose to a 13-month high of 50.4 in November. Separately, sales of washing machines, air conditioners and refrigerators increased by 6.5 percent, 0.5 percent and 22 percent, respectively, year on year in September. In Germany, business confidence jumped to 101.4 in November from 100 in October, well ahead of expectations of 99.5, while exports boosted growth. In the US, existing housing sales, housing starts, and initial claims and leading economic indicators beat market expectations.
The trouble, however, is that this rebound, if it is for real, may be short-lived. Globalization faces several threats that will put the breaks to future growth. Some of the obstacles include:
1. Rise of re-regulation in the US. Since the early 1980s, the US has been the champion of deregulation, a tailwind for American industries. In the aftermath of the subprime crisis, the US economy is on a re-regulation track that burdens corporations with additional costs. Most notably, Obamacare is imposing an enormous cost on smaller corporations, the engine of job growth.
2. Proliferation of the European sovereign debt crisis. This threatens to culminate in a “credit event,” the failure of a major financial institution or a country to stand up to its debt obligations by missing an interest/principal payment. In a highly interdependent world, such an event could fuel a domino (Lehman-style) effect, with big losses for major credit institutions. As Rogoff and Reinhart put it in an interview in this weekend’s Barron’s: “Credit events don’t end with Greece. This is not a Greek problem. This is a European problem. So be prepared fo a lot of volatility surrounding future credit events.”
3. The dismantling of “soft socialism” — drastic cuts in a European welfare system, which has boosted consumer spending and reinforced social peace for six decades.
4. The escalation of the Middle-East crisis threatens to turn into a military confrontation between Iran and Israel and Turkey and Syria in an already unstable era.
5. The China-Japan conflict over territorial disputes that threatens to turn into an economic war, if not to an open military confrontation in the world’s fastest growing region. Japanese multinationals like Honda (NYSE:HMC), Toyota (NYSE:TM) and Nissan (OTC:NSANY) have already seen the impact from this conflict.
Already, a number of US multinationals, from IBM (NYSE:IBM) to General Motors (NYSE), Intel (NASDAQ), and Federal Express (NYSE:FDX), Caterpillar (NYSE:CAT), and Ford (NYSE:F) have been reporting lower earnings because of a global slow-down. Could anyone imagine what would happen to the earnings of these companies should any of these threats gets out of control?
The bottom line: As long as the world is burdened with debt, government policies that constrain domestic market growth, and old and new animosities that constrain international trade, any rebound is doomed to be short-lived.
Read more: Why a Global Economic Rebound Will Be Short-lived - Forbes
France Conservatives In Disarray: UMP ‘close to collapse’ after talks fail to resolve crisis
France's main right-wing opposition party was close to collapse on Sunday after talks failed to resolve a bitter leadership dispute and an ex-prime minister vowed to take the battle to the courts.
The contested leadership vote has thrown into turmoil ex-president Nicolas Sarkozy's UMP -- still reeling from its loss of the presidency and parliament this year -- and raised the specter of an unprecedented split on the right.
Called in to mediate the damaging dispute, party heavyweight Alain Juppe threw in the towel after only 45 minutes of talks between ex-prime minister Francois Fillon and party secretary general Jean-Francois Cope late Sunday.
Read more: UMP ‘close to collapse’ after talks fail to resolve crisis - FRANCE - FRANCE 24
The contested leadership vote has thrown into turmoil ex-president Nicolas Sarkozy's UMP -- still reeling from its loss of the presidency and parliament this year -- and raised the specter of an unprecedented split on the right.
Called in to mediate the damaging dispute, party heavyweight Alain Juppe threw in the towel after only 45 minutes of talks between ex-prime minister Francois Fillon and party secretary general Jean-Francois Cope late Sunday.
Read more: UMP ‘close to collapse’ after talks fail to resolve crisis - FRANCE - FRANCE 24
Poland: Reclaiming Jewish Property in Krakow
Before World War II, the Karmel family ran a successful business in Krakow and owned a building on ul. Józefa. The family had been part of the Jewish community in the city since the 14th century. Like millions of others, they suffered the depredations of the Nazi invaders and then, when the war was over, the surviving members of the family left Poland for good. The building at ul. Józefa 1, like tens of thousands across the country, was simply abandoned. Now, almost 70 years later, New York Rabbi Joseph Karmel wants it back.
“Restitution is a documentary about an unacknowledged crime on a massive scale. Twenty three years after the fall of Communism, Poland still refuses to do what it promised to do. The government of Poland will not pass a restitution law that would either return private property or compensate Jews and their heirs for assets seized during the Nazi occupation or under the Communist regime. Poland’s unwillingness to pass such a law puts the country squarely out of step with rest of Europe,” says Scott.
Read more: Reclaiming Jewish Property in Krakow » Krakow Post
Canadian filmmaker Eric Scott became involved with Rabbi Karmel’s story when he decided to shoot a documentary about the ongoing issue of restitution in Poland. Now seeking funding to complete his project, Scott is planning to bring his crew to Krakow and ask some searching questions.
Read more: Reclaiming Jewish Property in Krakow » Krakow Post
Electric Automobiles: Is the electric car dying again? - by Scott Mortman
A second administration of President Barack Obama will be forced to revisit the issue of subsidies for renewable energy and, with it, those for electric vehicles. Despite the millions of dollars spent on government incentives, marketing and promotion, sales of fully electric cars are well below projected targets. Investment in vehicle charging infrastructure also has fallen victim to budget cutbacks, limited usage and concern over the return on money spent.
Indeed, only last month, a leading automotive battery manufacturer, A123 Systems, was forced to declare bankruptcy. And the founder and CEO of Better Place, Shai Agassi, whose company (in which I was employed) promotes all-electric vehicles with batteries that can be both charged and replaced, was himself replaced due to low sales figures and high capital expenses arising from the deployment of battery-switching stations. As a result, the question is now being raised: Are we again bearing witness to the death of the electric car?
Any such conclusion over the longer term may be premature. With declining costs and gradually improving technologies that can extend battery range beyond its current limitations, the electric car continues to hold promise. Rising gasoline prices and potential disruptions in oil supply favor alternative sources of energy.
To achieve mass market adoption, however, cars running on electricity — or any other alternative energy source — must satisfy the three “C’s”: cost, convenience and connectivity.
Read more: Is the electric car dying again? - Opinion - MiamiHerald.com
Indeed, only last month, a leading automotive battery manufacturer, A123 Systems, was forced to declare bankruptcy. And the founder and CEO of Better Place, Shai Agassi, whose company (in which I was employed) promotes all-electric vehicles with batteries that can be both charged and replaced, was himself replaced due to low sales figures and high capital expenses arising from the deployment of battery-switching stations. As a result, the question is now being raised: Are we again bearing witness to the death of the electric car?
Any such conclusion over the longer term may be premature. With declining costs and gradually improving technologies that can extend battery range beyond its current limitations, the electric car continues to hold promise. Rising gasoline prices and potential disruptions in oil supply favor alternative sources of energy.
To achieve mass market adoption, however, cars running on electricity — or any other alternative energy source — must satisfy the three “C’s”: cost, convenience and connectivity.
Read more: Is the electric car dying again? - Opinion - MiamiHerald.com
Subscribe to:
Posts (Atom)