European Salon de News, Discussion et Klatsch - 23. September

by Fran
Mon Sep 22nd, 2008 at 09:32:45 PM EST

On this date in history:

1907 - Anne Desclos, a French journalist and novelist who wrote under the pseudonyms Dominique Aury and Pauline Réage, was born.(d. 1998)

More here and here


Welcome to the European Salon!

This Salon is open for discussions, exchange, and gossip and just plain socializing all day long. So please enter!

The Salon has different rooms or sections for your enjoyment. If you would like to join the discussion, then to add a link or comment to a topic or section, please click on "Reply to this" in one of the following sections:

EUROPE - is the place for anything to do with Europe.

WORLD - here you can add the links to topics concerning the rest of the World.

THIS, THAT, AND THE OTHER - is the place for everything from environment to health to curiosa.

KLATSCH - if you like gossip, this is the place. But you can also use this place as an Open Thread until the one in the Evening opens.

SPECIAL FOCUS - will be up only for special events and topics, like elections or other stuff.

I hope you will find this place inspiring - of course meaning the inspiration gained here to show up in interesting diaries. :-)

There is just one favor I would like to ask you - please do NOT click on "Post a Comment", as this will put the link or your comment out of context at the bottom of the page.

Actually, there is another favor I would like to ask you - please, enjoy yourself and have fun at this place!

Login
. Make a new account
. Reset password

Display:
EUROPE
by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:33:50 PM EST
Man arrested for Italian shooting  | BBC News

Italian police have arrested a man over the killing of six African immigrants near Naples last week.

Investigators say they believe the killings, which sparked a riot by local immigrants, were the work of the local mafia, known as the Camorra.

They believe the arrested man was part of a gang that allegedly fired on the immigrants. His family say he had nothing to do with the attack.

Police are still looking for two other people in connection with the killings.

by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:38:55 PM EST
[ Parent ]
According to Italian reconstructions (among whom Saviano) there are at least five members to the band plus bosses. Since last May they have killed 16 people in a strategy of terror culminating in the Castel Volturno massacre of September 18th. There is no evidence that the six African immigrants were involved in drug trafficking or prostitution. Their deaths appear to be no more than a barbaric message.

The camorra group presumed responsible for the murder spree are linked to the Bidognetti clan recently disseminated by arrests, heavy prison sentences and supergrassos. It is rumoured that the head of the clan had become a state witness thus provoking not only a war of succession but a policy of burnt earth around anyone who goes state witness through the massacre of their family members.

The political referents of the Bidognetti clan have recently been outed in a series (second article) of scoops by l'Espresso weekly. According to the scoops prominent Campania political figures in Berlusconi's entourage had key roles in the garbage racket for nearly two decades. They are the same individuals who "cleaned" up Naples.

by de Gondi (publiobestia aaaatttthotmaildaughtusual) on Tue Sep 23rd, 2008 at 01:29:05 AM EST
[ Parent ]
France to bolster Afghan mission | Al Jazeera English

Francois Fillon, France's prime minister, has said Paris will strengthen its mission in Afghanistan with more helicopters, drones, intelligence-gathering equipment and about 100 extra troops.

He made the announcement during a debate in the lower house of the French parliament in which members voted to keep French troops stationed in Afghanistan despite an attack there last month in which 10 soldiers were killed.

The parliament, which is dominated by the party of Nicolas Sarkozy, France's president, voted 343 to 210 in favour of continuing the Nato mission which involves 2,600 French troops.

The vote is the first under a constitutional amendment approved in July that requires politicians to vote on any foreign military operation lasting more than four months.

by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:49:11 PM EST
[ Parent ]
Canadian paper stands by story on Taliban ambush of French | AFP

Canada's Globe and Mail newspaper said it stands by its account of a NATO report that described Taliban forces as better-armed than French soldiers targeted in a deadly ambush last month.

Both NATO and the French military have denied the substance and the existence of any such report, saying the newspaper was referring to a leaked e-mail by an officer who gave a partial account of the incident.

But the Toronto daily said the article was well-sourced and based on a confidential report, not an e-mail.

"The Globe and Mail obtained the report from a trusted source, and checked its authenticity with other sources," Philippe Devos, assistant foreign editor at the Toronto daily, told AFP in an e-mail.

Marked "NATO/ISAF SECRET," the report bears the four pointed blue star symbol for NATO and the green emblem of the International Security Assistance Force, the newspaper said.

The paper on Saturday quoted the report on the deadly August 18 ambush as saying the paratroopers had run out of ammunition after only 90 minutes and had one radio that was quickly knocked out, leaving them unable to call for air support.

Ten French soldiers were killed in the assault. The mountain ambush east of Kabul was the deadliest ground attack on international troops since they were sent to Afghanistan in 2001 to oust the hardline Taliban regime.

by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:50:45 PM EST
[ Parent ]
See The "Afghan Events".

When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 01:23:56 AM EST
[ Parent ]
France to strengthen its Afghan presence - International Herald Tribune

PARIS: One month after ten French soldiers died in a Taliban ambush in Afghanistan, the government announced Monday that it would reinforce its presence there, sending more troops and better equipment despite the outpouring of anguish over the deaths.

There have been several reports - in the media and from leftist opposition politicians - that French troops were poorly equipped for their deployment in the rugged mountains east of Kabul. But Prime Minister François Fillon said during a debate in Parliament on the Afghan deployment that the government was more determined than ever to stay.

"The president of the republic and government have learned the lesson from this murderous ambush," Fillon said in the National Assembly. "We have decided to strengthen our military means.

"Not acting would leave the Afghans at the mercy of the Taliban and Al Qaeda, would re-expose us to the risk of terrorism and would leave our allies to fight for us alone."

by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 02:11:11 AM EST
[ Parent ]
So, is France diving deeper into the morass? Or what will the outcome be?

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 02:48:39 AM EST
[ Parent ]
except that the reaction at home is likely to be a lot more hostile, a lot quicker. Sarkozy thinks that the brazen "I'm not a typical politician, I tell some hard truths, and a hard truth is that we have to be close to the US and fight in Afghanistan against the Evil Islamic Menace" will work but on this I think he is mistaken.

This could get interesting.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 04:04:18 AM EST
[ Parent ]
Except that he can now claim that he has a parliement vote for it.
Of course, had the vote been a secret ballot, it would have been strongly rejected. But whereas Sarkozy does not have a secret ballot majority at the moment (ie, too many UMP MPs would vote against him if it were quiet for a majority), it is a rare and brave UMP member who will dare to vote against the little dictator.

"The womb that spawned that thing is fertile yet"
by Cyrille (cyrillev domain yahoo.fr) on Tue Sep 23rd, 2008 at 05:06:41 AM EST
[ Parent ]
And note that it's the first time since 1978 that the French opposition voted "no" on a war-related vote...

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Tue Sep 23rd, 2008 at 05:09:43 AM EST
[ Parent ]
Same for Iraq: the US Congress voted for the war in 2003, including a large number of Democrats...

Fast-forward to 2006: Iraq war was used against Republicans running for re-election.

The closer we get to 2012, the more nervous UMP MPs will be...

Europeans think a hundred miles is a long way. Americans think a hundred years is a long time.

by Bernard on Tue Sep 23rd, 2008 at 03:31:18 PM EST
[ Parent ]
FT.com / Columnists - Paul Betts/ European View - Alitalia offers Berlusconi his Thatcher moment

Airlines and coalmines may not be quite the same thing, yet this week could turn out to be Silvio Berlusconi's Thatcher moment.

The Italian rightwing prime minister and media tycoon has been desperately trying to keep Alitalia flying. But all his latest salvage efforts for his country's stricken flag carrier have been blocked by the intransigence of a relatively small group of hardcore unions interested above all in protecting their power and privileges.

These unions, including one representing about 1,000 highly paid pilots, have little public support - not unlike Britain's old National Union of Mineworkers when Margaret Thatcher decided to take them on. The confrontation between the Conservative prime minister of the day and the miners turned into a seminal moment for British labour relations. Mr Berlusconi has the opportunity to do the same in Italy.



When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 01:36:04 AM EST
[ Parent ]
A marketista propagandist can't get any more brazen that that...

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 03:01:36 AM EST
[ Parent ]
is dedicated to claiming how terribly stupid  and inferior the continentals are. I don't think I've ever seen him stray even once from that theme.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 04:02:17 AM EST
[ Parent ]
May we have a 'jawdropping' tag?
It would save a lot of typing time these days...

"The womb that spawned that thing is fertile yet"
by Cyrille (cyrillev domain yahoo.fr) on Tue Sep 23rd, 2008 at 05:12:39 AM EST
[ Parent ]
Design it, and we'll instate it!

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 06:13:25 AM EST
[ Parent ]
Well, if I can work out how to do so I will.

"The womb that spawned that thing is fertile yet"
by Cyrille (cyrillev domain yahoo.fr) on Tue Sep 23rd, 2008 at 10:03:27 AM EST
[ Parent ]
But all his latest salvage efforts for his country's stricken flag carrier have been blocked by the intransigence of a relatively small group of hardcore unions interested above all in protecting their power and privileges.

Mr. Bell does a good job of translating into English Berlusconi's position which has been accepted by the general public thanks to a perfectly tuned media machine.

Alitalia was already on the point of being salvaged by Air France under far better conditions than those offered by Berlusconi's "Italian" group of bigwig crony impresarios with outrageous conflicts of interest.

The "small group of hardcore unions" amounts to the CGIL, the largest representative union in Italy together with the small unions that represent specific categories. In the words of Epifani, head of the CGIL, you don't negotiate with a pistol pointed at your temple- nor at the last minute. Mr. Berlusconi evidently takes his queues from watching Don Vito Corleone who managed business relations by "making offers that can't be refused."

For a breakdown of union representation see the following article (in Italian). When the tally is made that "small group of hardcore unions" happens to represent the majority of Alitalia workers. Mr. Bell's assertion

Most of Alitalia's unions finally accepted, albeit reluctantly, to a restructuring involving some 3,000 job cuts to allow the rescue to take off.
is simply false- pure berlusconese.

By following the Thatcher example and calling the unions' bluff, he would burst the abscess of 30 years of irresponsible and damaging Italian labour relations. That could turn out to be a far more valuable long-term legacy than saving the national flag carrier.
During Mr. Berlusconi's previous tenure Alitalia shares lost 90% of their value. The problem of Alitalia was entirely ignored at the time.

Alitalia pilots are paid less and have less "privileges" than their European colleagues. Further they did offer to reduce these so-called "privileges" such as being bussed to the airport.

Pilots effectively do have power- and responsibilities. They fly aircrafts.

Alitalia may likely be grounded on Thursday. Berlusconi's cronies will walk off with the choice slices. The Italians that pay taxes will pick up Alitalia's debts and gleefully continue to vote for their saviour who, as we all know, is sacrificing himself for the superior good of the motherland.

by de Gondi (publiobestia aaaatttthotmaildaughtusual) on Tue Sep 23rd, 2008 at 05:02:53 AM EST
[ Parent ]
These unions, ........, have little public support - not unlike Britain's old National Union of Mineworkers when Margaret Thatcher decided to take them on.

We might quiestion the tactics of the miner's leadership and the bullyboy behaviour that unnecessarily reduced public sympathy, but to say they had little support is to indulge in historical revisionism of Winston Smith proportions

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Sep 23rd, 2008 at 06:10:09 AM EST
[ Parent ]
Well, it's the FT. To admit that Thatcher's breaking of the unions was other than a historical necessity would be impossible.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Tue Sep 23rd, 2008 at 06:15:17 AM EST
[ Parent ]
Not all bits of the FT are as knee-jerk partisan as Paul Betts.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 06:20:05 AM EST
[ Parent ]
Little support from the people that actually matter, he obviously meant to say.
by Trond Ove on Tue Sep 23rd, 2008 at 06:34:45 AM EST
[ Parent ]
BBC NEWS | Europe | EU prepares Georgia observer role

The German head of the EU's observer mission in Georgia says his team is due to deploy by 1 October around Russian-held Abkhazia and South Ossetia.

Hansjoerg Haber said most of his team would arrive in Georgia this week, Reuters news agency reported.

At least 200 EU observers are expected to monitor a Russian troop withdrawal, though some reports say the EU contingent may total as many as 350.

Russia plans to keep nearly 8,000 troops in Georgia's breakaway regions.

Moscow recognised the two regions as independent following a brief but intense conflict with Georgia last month.



When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 01:50:40 AM EST
[ Parent ]
"The Americans said, 'We Won't'": Merkel Says Washington Helped Drag Europe into the Credit Crisis - SPIEGEL ONLINE - News - International

Response to Washington's multibillion-dollar Wall Street bailout has involved a lot of skeptical grumbling in Germany and the UK. German Chancellor Angela Merkel says the Bush administration has mishandled Wall Street, and that its refusal to adopt stricter rules led to the current crisis.

German Chancellor Angela Merkel: "That cannot be allowed in the international sphere." The United States government is campaigning around the world for support for its multibillion-dollar Wall Street rescue package. The reaction has been skeptical at best -- and in Europe the plan has been met with bareknuckled criticism.

German Chancellor Angela Merkel has accused the US government of serious failures which she believes contributed to the current credit crisis. In particular she blamed Washington for resisting stricter regulation.

On Monday she also said the crisis could hurt the German economy. "The whole thing is going to set the pace for the economy in the coming months and perhaps years," Merkel said at a meeting of her party, the conservative Christian Democrats.

by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 01:53:28 AM EST
[ Parent ]
Germany Says it Sees No Need for Own US-style Bailout | Germany | Deutsche Welle | 22.09.2008
Germany said on Monday it sees no need to create a US-style financial sector bailout of its own as Chancellor Merkel renewed calls for tighter regulation of the financial sector.

Germany has no plans to join in the massive US bailout operation for financial institutions that have run into difficulties with risky mortgage debt, officials said Monday, Sept 22.

The six Group of Seven economic powers aside from the United States do not plan any measures comparable to a US package to support the banking sector, German Finance Minister Peer Steinbrueck said on Monday.

Ulrich Wilhelm, a spokesman for German Chancellor Angela Merkel, too said the government saw no need for such an undertaking in Germany.

by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 01:57:29 AM EST
[ Parent ]
Germany and UK want global financial regulator - EUobserver

The UK and Germany believe that a new international system regulating the financial sector must be constructed to prevent a repeat of global banking crisis in the future.

Peter Steinbrueck, Germany's Social-Democrat finance minister, raised on Sunday (21 September) the idea of "an international authority that will make the traffic rules for financial markets," while speaking to German radio, Reuters reports.

One government alone cannot deal with the consequences of globalisation

Meanwhile, UK Prime Minister Gordon Brown is to outline proposals for just such a body, run under the authority of the International Monetary fund, in a speech to the Labour Party conference on Monday, as well as domestic plans to crack down on "irresponsible" bonuses handed out in the City, London's financial quarter.

"I think what people haven't appreciated is we've now got global financial systems but we've only got national regulators to cover them," Mr Brown told the BBC ahead of the speech, adding that he had been trying to convince his international counterparts for years of the need for "a global system of financial regulation."

by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 01:59:42 AM EST
[ Parent ]
The first time I read this (while putting together the Salon on Saturday, I believe), I couldn't believe it. Could someone explain why Brown is on board with this?

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 03:05:08 AM EST
[ Parent ]
he realises that 99% of the population is outraged by the current bailout of the bankers?

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 04:05:12 AM EST
[ Parent ]
He (and other leaders, see Sarko's "tough" posturing about the bad guys having to pay) see that, but also probably realize this crisis is not yet over, and it will be as well to go on record asap as being in favour of regulation. That way they can pretend: "I've always been in favour of regulation".

When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 05:22:19 AM EST
[ Parent ]
It's very hard to give a coherent explanation of anything Gordon Brown does these days.

It's not a bad idea though, no?

by Metatone (metatone [a|t] gmail (dot) com) on Tue Sep 23rd, 2008 at 04:05:18 AM EST
[ Parent ]
Well, isn't that precisely why Brown's support is surprising? ;-)

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 04:06:48 AM EST
[ Parent ]
It's the labour party conference this week. This is to appease the anger of those outraged by the results of the series of de-regulations he oversaw.

He's also therefore avoiding having to announce anything concrete that will damage his relationships with his chums in the City. After all he may be in need of a directorship or two in the near future.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Sep 23rd, 2008 at 06:20:50 AM EST
[ Parent ]
This is not (just) domestic, this is a joint proposal in the EU. (And that's another big thing; Brown didn't care much for the EU previously.)

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 06:23:52 AM EST
[ Parent ]
Someone in the City must have told Brown that they need Europe's help.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Tue Sep 23rd, 2008 at 06:31:06 AM EST
[ Parent ]
But that's the very point. He knows that by joining in with an EU proposal he's;-

i) postponing any decisions for a couple of years, ie after the election so he doesn't have to worry about it. A deferred policy change is as good as no policy change.

ii)by the time they come to a decision, all of the fallout will be over and, if still in power, he can portray it as an unwarranted intrusion of the EU into the profitability of the City institutions that makes Britain a world leader blah blah.

Basically, he gets to be seen to be supporting the idea of change whilst whole-heartedly resisting it. There's a whole lot of lobbying, parties, favours, golf trips and bribes from deep deep pockets to be done before "decisions" are made. Just remember how effective Mandelson is at ensuring that all regulations and controls on trade reflect Anglo-American priorities rather than protecting the european public from the rapacious scum preying upon them.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Sep 23rd, 2008 at 06:36:18 AM EST
[ Parent ]
I lean for Mig's opinion above.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 08:08:43 AM EST
[ Parent ]
While I agree that this needs to be organised at international level, we need to be aware that who gets to determine who is appointed and what their background is will determine the effectiveness. A few years ago arch-deregulators such as Greenspan or Bernanke would have been in the running because the over-riding principle was that "greed is good, greed is what makes America global finance great". The idea that risk threatens the world economy would have been considered as the very definition of girly-men. Anybody who threatened to impose genuine regulation and oversight would have been deposed.

And anyone who thinks any of these bastards have really learnt their lesson need only remember that Barclays are gonna pay $2.5 billion worth of bonuses to Lehmans staff for driving their company into bankrupcy. they're very sorry for 5 minutes and then when everybody's backs are turned they'll be at it again and regulation will be the enemy of "innovation", profits and bonuses; same as it ever was.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Sep 23rd, 2008 at 06:28:54 AM EST
[ Parent ]
And yet, this too will be accepted by the Statesians. Really, when all is said and done in Iraq, it will be 3 trillion in expenses and liabilities lost in the sand, lost to Halliburton and Blackwater and the companies of a half dozen other right wing socialists...even if that war ended to day...2.5 billion...ha.

That's only $10,000 to 250,000 people for a half year of house payments or health insurance perhaps.

One the other hand, 2.5 billion is only 250 x 10 million dollar yachts. Yachts that size are actually the tiny 30 meter ones. But think of all the employment that will bring. The skilled builders and painters and repair engineers flying all over, and a few of crew around all year and more for those few weeks and all those weekends that the owner is actually aboard.

Monaco Yacht Show starts tomorrow. Come on down.

Never underestimate their intelligence, always underestimate their knowledge.

Frank Delaney ~ Ireland

by siegestate (siegestate or beyondwarispeace.com) on Tue Sep 23rd, 2008 at 02:38:32 PM EST
[ Parent ]
Washington divided over plans to offer Europeans a share of $700bn bailout - Times Online

British and European banks could be excluded from Washington's $700 billion (£382 billion) bailout amid a backlash over the financial burden on the US taxpayer.

While Hank Paulson, the US Treasury Secretary, wants to allow foreign banks to benefit from the scheme, some Democrats in Washington and others on Wall Street are angry that taxpayer funds may be used to prop up overseas businesses.

Uncertainty for banks such as UBS, the Swiss financial group, Deutsche Bank, the biggest bank in Germany, and HSBC comes two days after Mr Paulson and President Bush urged lawmakers in Washington to push through the largest financial intervention package since the Great Depression to avoid the meltdown of America's banking system.

As Mr Paulson held meetings with Republicans and Democrats over the weekend to persuade them to nod through the package, dissent broke out over the terms. Chris Dodd, the Democratic chairman of the Senate Committee on Banking, Housing and Urban Affairs, acknowledged yesterday that the crisis demanded quick action, but made it clear that Democrats would not rubber-stamp the Administration's proposal. It is believed that bankers from Deutsche Bank and UBS approached America's central bank and other Washington agencies at the weekend to seek assurances they would be included in the bailout.

  [Murdoch Alert]
by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 02:15:03 AM EST
[ Parent ]
If foreign banks are not included, they can just sell the securities to a US bank, which will then sell it to the Treasury. The US banks will take a fee along the way, but the assets of the foreign banks can still be dumped on the Treasury.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 04:07:50 AM EST
[ Parent ]
'Russia's Energy Weapon': German-US Tensions Grow Over Baltic Pipeline - SPIEGEL ONLINE - News - International

A US diplomat has denounced the controversial Baltic natural gas pipeline as "a special arrangement between Germany and Russia." His remarks have ruffled feathers in Berlin and highlighted growing US-German tensions over relations with Russia.

 A gas flare in Russia. Michael Wood, 61, is an athletic man. He has an impressively low golf handicap of 12. The former corporate executive has often gone mountain biking with US President George W. Bush, a connection that may have helped him acquire his current position. Wood has been the US ambassador to Sweden for the past two years.

He is not, however, very well versed in the art of diplomacy. At the end of the week before last, the Swedish daily newspaper Svenska Dagbladet published an op-ed article by the ambassador that set down some unmistakable ground rules. According to Wood, when the Swedish government evaluates the proposed Baltic natural gas pipeline project over the coming months, it should examine more than just environmental aspects. He wrote that the pipeline represents "a special arrangement between Germany and Russia" that "bypasses the Baltic States and Poland," which are "potential customers." Wood calls for the EU to speak "with a single voice to counteract the power of Russia's energy weapon."

The article alarmed the German government. Rüdiger von Fritsch, head of economic affairs at the German Foreign Ministry, promptly called up the American embassy in Berlin and demanded an explanation. Von Fritsch said the German government was "annoyed" by this highly "unusual" approach.

by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 01:55:00 AM EST
[ Parent ]
'Russia's Energy Weapon': German-US Tensions Grow Over Baltic Pipeline - SPIEGEL ONLINE - News - International
On the other end of the line, Deputy Chief of Mission John Koenig said that he was surprised by the ambassador's statements. He underscored that the US position remains unchanged: Washington will issue no comment on the private pipeline deal. Koenig suggested that the article may have been insufficiently screened in Washington -- a PR mishap, so to speak.

The two experienced diplomats agreed to avoid a "public scuffle." However, von Fritsch made one condition: Nothing like the Wood article must be allowed to happen again.

Huh.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Sep 23rd, 2008 at 03:34:12 AM EST
[ Parent ]
Martin Schulz, the leader of the Social Democrat parliamentary group in the European Parliament, even sees the Wood article as a "helpful" indicator of "what the Americans aim to do, namely destabilize Europe."

Cool! Now let's hear something as strong on the issue of visas and airline passenger lists, too.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Sep 23rd, 2008 at 03:42:06 AM EST
[ Parent ]
Money and friendly corporations can make Cold Warriors think logically:

"The Baltic Sea pipeline would not lead to a one-sided dependency on Russia, which would in fact be dangerous," says CDU foreign policy spokesman Eckart von Klaeden. "After all, the enormous Russian investments have to be paid off."


*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 03:45:25 AM EST
[ Parent ]
standing firm on this.

There is an increasingly long list of topics on which Germany is standing firm to the US. Which makes France's position (up Bush's ass) all the more annoying.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 04:09:55 AM EST
[ Parent ]
In this case, heavy business interests are involved, so what surprises me is only the sharpness of the tone. Still, despite Martin's arguments (the saying he quotes in English c.: "Friendship ends where money is involved") with the other examples I agree, as I discussed with him the other day, I almost see the beginnings of an independent foreign policy of the current government.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 04:38:30 AM EST
[ Parent ]
Let's use the "energy weapon" we hold agaisnt Russia: we can stop buying its oil or gas and basically bankrupt the country.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 08:10:19 AM EST
[ Parent ]
Khodorkovsky: Georgia war could bring EU and Russia closer - EUobserver

Russia's invasion of Georgia could be followed by a Kremlin effort to mend ties with the West. But the EU has to pull the Russian elite closer without losing sight of its own values, according to fallen oligarch Mikhail Khodorkovksy.

"It's fashionable to say the 'five day war' and Russia's recognition of Abkhazia and South Ossetia is a major blow to Russo-European relations and the prospect of liberalisation in Russia. I'm not convinced," Mr Khodorkovksy said in a rare interview in Le Figaro this weekend. "This crisis could push the Kremlin to take steps to improve relations with the West. If those steps don't undermine Russia's geopolitical position."

Moscow: not necessarily on a collision course with the EU

Russia's one-time richest man sent in his statements from a jail cell in Siberia, having spent five years in prison after the break-up of his oil firm, Yukos, over politically-motivated fraud charges.

Mr Khodorkovksy praised France for handling the Georgia crisis with understanding for the "nuances" of Russia's post-imperial problems, urging the EU not to try and dominate Russia but not to lapse into value-free realpolitik either.

by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 02:02:00 AM EST
[ Parent ]
Perhaps of most interest for those attending ET Meets:

BBC NEWS | Business | EU to slash more mobile charges

EU to slash more mobile charges
Using a phone abroad should become even cheaper

Proposals to slash the cost of using mobile phones abroad, for text, data and voice calls, could become law next July following a vote in Brussels.

The European Parliament is to vote on whether roaming costs for text messages should be capped.

The cost of sending a message is expected to eventually fall by 60% from an average of 23 pence to 9 pence.

Voice calls would fall from 36 to 27 pence a minute and customers would be able to set limits on data downloads.

A reluctant mobile phone industry first had limits on its roaming charges imposed by the EU in September 2007.

However, those applied only to voice calls, not those for texting or browsing the internet.

by Metatone (metatone [a|t] gmail (dot) com) on Tue Sep 23rd, 2008 at 03:56:04 AM EST
[ Parent ]
Regulation is better than competition to bring prices down?

Or is that unfair gouging of poor struggling companies that will once more erode Europe's attractiveness for investment?

This is soooo confusing.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 04:11:16 AM EST
[ Parent ]
Sarko's attacking his base.

http://news.yahoo.com/s/nm/20080923/wl_nm/us_france_economy_sarkozy

Hey, Grandma Moses started late!

by LEP (rafifoon@yahoo.com) on Tue Sep 23rd, 2008 at 05:51:15 AM EST
[ Parent ]
Bloomberg: Finland's 2nd School Attack in Year Leaves Casualties
A gunman opened fire at a catering college in Kauhajoki, Finland, the nation's second school shooting in a year. The attack left several people dead and more were injured, state broadcaster YLE said, citing police.

The gunman later shot himself, YLE said, and is being treated by paramedics, YLE said, citing the police at Kauhajoki. It didn't give details.

``There has been shooting at the Kauhajoki Home Economics and Catering School,'' police sergeant Jussi Muotio said in a phone interview from Kauhajoki, about 330 kilometers from Helsinki. ``There are casualties, but we don't know yet how many.''



A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Tue Sep 23rd, 2008 at 06:39:27 AM EST
[ Parent ]
Sven or anyone on the ground, are there any loud noises for gun control?

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 06:59:11 AM EST
[ Parent ]
DoDo_ Those calls will come. Everyone is now in shock.

There will not be any kind of total ban called for - Finland is still largely forest and arable, and hunting is an old tradition (and a method of culling). The laws are actually quite strict - it is the application of them that is lax.

What we may see called for is a raising of the age at which a license can be issued, and restrictions on the types of guns that can be purchased and licensed. You have to remember that there is still compulsory national service, so most young guys over 21 are familiar with weapons. (except for those who choose civil service or are medically excused). I do not know if the young man in this tragedy had completed his national service. I suspect not. A macabre fascination with guns does not usually survive military training in Finland.

But there have been a number of incidents in the past year outside of professional crime. So a tightening up of regulation and monitoring is likely.

You can't be me, I'm taken

by Sven Triloqvist on Tue Sep 23rd, 2008 at 11:49:55 AM EST
[ Parent ]
A cabinet crisis meeting recently concluded, ended with a press statement that indicates gun regulation will be revisited by the government.

You can't be me, I'm taken
by Sven Triloqvist on Tue Sep 23rd, 2008 at 02:06:20 PM EST
[ Parent ]
BBC NEWS | Europe | Finnish school gunman kills nine
The gunman, Pekka-Eric Auvinen, posted a video on YouTube as a preview of his attack, pledging to "eliminate" those he saw as "unfit".

Ms Holmlund said police questioned the man about the YouTube video, which showed him shooting at a firing range.

On the video, the gunman says "you die next" before firing three times at the camera.

Ms Holmlund said: "Police were aware of this and spoke to him on Monday, September 22. However, the police officer on duty decided there was no need to terminate his gun licence."



Somewhere in cyberspace, the ghost of de Chardin is smiling.
by budr on Tue Sep 23rd, 2008 at 10:44:13 AM EST
[ Parent ]
That seems to be a shocking level of leniency, at least at first sight.

Gun crime and gun insanity including school shootings might be the most serious problem in the USA, and the rate of gun ownership (especially ownership of guns for personal safety) might be the highest there, but Europe has a gun problem, too.

In countries like France and Germany, it's chielfy the hunting lobby that retains too many loopholes. Switzerland is a special case with its home-stored military guns. But the worst are Austria and Finland, with relatively high gun ownership and mad gun lobbies, which even forced the respective countries to block EU-level regulation a feww years back.

Back to Finland, now or right after the nationwide mourning, what needs to be campaigned for is not simply stricter controls: sports shooters shouldn't be allowed to take a gun home (they should be kept at the club), and a rule for weapons not for persnal safety (including hunting guns) to be stored in disassembled state. If not, the next shooting comes, surely.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Sep 23rd, 2008 at 01:05:42 PM EST
[ Parent ]
WORLD
by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:34:18 PM EST
Egypt abduction talks 'ongoing' | BBC News

Egypt says negotiations are still ongoing to secure the release of 19 people abducted in southern Egypt.

A cabinet spokesman said that an earlier announcement by the foreign minister that they had been freed and were safe and well was premature.

The group includes five Italians, five Germans and a Romanian, along with eight Egyptians.

The government says they were taken across the border into Sudan, and the hostage takers have demanded a ransom.

by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:37:21 PM EST
[ Parent ]
Head of watchdog resigns as number of babies in hospital from tainted milk rises to 13,000 | The Guardian
· Over 40,000 treated in melamine scandal
· Countries across Asia ban or recall imported goods

Almost 13,000 Chinese babies are in hospital after consuming tainted baby milk, and a further 40,000-plus have been treated, in a scandal which yesterday led to the resignation of the head of the country's quality watchdog, according to state media.

The scandal, which began when dozens of babies suffered kidney stones and even kidney failure after drinking a popular brand that contained the chemical melamine, has since spread to more than 20 companies and affected products including fresh milk, yoghurt and ice-cream.

Countries across Asia are checking imported dairy products from China. Brunei, Singapore, Malaysia and Hong Kong have already banned or recalled a variety of milk products. Taiwan banned all mainland dairy products on Sunday. In Hong Kong Nestlé, the world's largest food company, said it had recalled a UHT pure milk product after a local food watchdog discovered samples containing a tiny amount of the chemical melamine.

by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:40:45 PM EST
[ Parent ]
there's an interesting metaphor between the melamine added to fake higher protein content in dried milk, and the 'toxic paper' that has been polluting the world financial system.

sneak the poison in with the 'good stuff', so peoples' confidence is artificially boosted, while they and their children (mostly the latter) are slowly killed.

"I freed thousands of slaves. I could have freed thousands more, if they had known they were slaves." -Harriet Tubman .

by melo (melometa4(at)gmail.com) on Tue Sep 23rd, 2008 at 06:30:58 AM EST
[ Parent ]
I'm interested to see how this plays out. Parents of children who were killed by badly built schools in the recent earthquake and wanted those guilty of corruption and fraud punished have been arrested or threatened.

So will china allow this go on for a week and then stamp on it.

After all, the govt doesn't want anything to interfere with the global image of china as the thrusting new superpower. Pictures of grieving parents accusing Party bosses of corruption doesn't look good. And seeing as it's the system itself that is rotten and makes this stuff inevitable, there's not gonna be any change.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Sep 23rd, 2008 at 06:49:05 AM EST
[ Parent ]
So far the pattern of this event is that it has gotten much bigger than the earthquake problem, mediawise... that may make it harder to suppress.
by Metatone (metatone [a|t] gmail (dot) com) on Tue Sep 23rd, 2008 at 07:02:20 AM EST
[ Parent ]
They will close the guilty factory, sentence to death its director, make a lot of noise about it, and forget about food regulation until the next crisis strikes.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 08:11:46 AM EST
[ Parent ]
on the last point:

Jerome a Paris: forget about food regulation until the next crisis strikes.

Just like the financial meltdown on Wall Street, this food scandal is exceptional in scope and impact.

First of all, China is huge.  Four times bigger than Europe or the USA, population-wise.  Lots of people, lots of companies, lots of things to look over, in a ridiculously fast changing, churning environment.  Food regulation is carried out locally, but there is growing central government involvement.  And this scandal for sure will accelerate that.

Second, it's not liked developed countries like the U.S., Japan, Italy, and others haven't had, and continue to have, their own food contamination issues in recent years.  And China is not even a developed country yet.

Third, as metatone points out above, this story is all over the media.  Huge front page spreads on major dailies.  They've started tamping it down on TV because of too much rage on internet bulletin boards.  The government knows this is a big fuck-up, and just as they did already this year with the New Year's blizzards and the earthquake, they are choosing to tackle this problem head-on.

Helen makes a good point about how the government has shamefully smothered the school construction scandal in Sichuan, in part by paying off or intimidating parents into shutting up about it.  And it would be a good bet that if this milk tainting were local and isolatable, they would do the same here; since it is so widespread, the government has no choice but to deal with it openly.  That is obviously cynical of them.

But that does not change the fact that food quality is improving here, and although China still has far too many of these, it will have fewer and fewer of them over time, as an increasingly aware, demanding, and numerous middle class insists on better quality.  And as the government continues to get sick of losing so much face in the eyes of the world.

Truth unfolds in time through a communal process.

by marco (cowannar at gmail punkt com) on Tue Sep 23rd, 2008 at 09:44:20 AM EST
[ Parent ]
marco: Four times bigger than Europe or the USA, population-wise.

China's population is definitely not "four times" bigger than Europe's, but slightly less than twice Europe's population, and 2.5 times bigger than the EU's.

Truth unfolds in time through a communal process.

by marco (cowannar at gmail punkt com) on Tue Sep 23rd, 2008 at 09:51:09 AM EST
[ Parent ]
Well, looking at China Daily, one government 'response' seems to be stepping up alti-Dalai-Lama propaganda...

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 10:29:19 AM EST
[ Parent ]
Japan's Banks to the Rescue - BusinessWeek

On Sept. 22, Mitsubishi UFJ Financial Group, Japan's largest bank, said it's considering a multibillion dollar investment for up to 20% of Morgan Stanley. The news comes only a month after MUFG moved to beef up its U.S. presence with a $3.5-billion purchase of the 35% of UnionBanCal that it didn't already own.

Separately, Nomura Holdings, Japan's biggest brokerage, confirmed today it will buy Lehman Brothers' Asia operations--absorbing the 3,000 employees in the Asia-Pacific region but not the trading assets or liabilities--for an undisclosed amount.

A decade ago, it would have been hard to imagine.

<...>

Japanese financial institutions may finally be serious about growing beyond their home market, where the population is aging and the industry's prospects aren't all that promising. One reason they still have the resources is that they escaped the subprime U.S. mortgage implosion with barely a scratch. The 80s debacle had made them cautious, so they had steered clear of the reckless bets that got the U.S. banks in trouble.

In fact, they had seen this coming since at least last January.  Too bad the U.S. government hadn't -- or at least didn't care to do much about it.

Truth unfolds in time through a communal process.

by marco (cowannar at gmail punkt com) on Mon Sep 22nd, 2008 at 09:52:00 PM EST
[ Parent ]
Stocks Fall as Rescue Plan Is Negotiated | NY Times

WASHINGTON -- Senate and House Democratic leaders said on Monday that they had reached an agreement on their conditions for approving a $700 billion rescue plan for the financial system, including more oversight of the program and a requirement that the government do more to help troubled borrowers refinance their mortgages.

But even as Congressional Democrats and the administration began to narrow their differences, Democrats are bracing for a battle over efforts to limit the pay of executives whose firms seek help and over whether to grant bankruptcy judges authority to modify the mortgages of borrowers in danger of foreclosure.

Investors were skeptical. Concerns that the bailout plan may not move smoothly through Congress contributed to the anxiety in the markets that pushed the Dow Jones industrial average down more than 372 points and pushed crude oil up more than $16 a barrel.

by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:52:24 PM EST
[ Parent ]
Bailout's Engineers Face a Dilemma | Washington Post

As the government weighs how to bail out the financial sector, the engineers of the plan face a dilemma.

The higher the prices the government pays for troubled mortgage securities held by banks, the more the rescue will bolster those banks and sustain the lending that is vital to the broader economy. But higher prices would also mean a worse deal for taxpayers.

In other words, the more effective the plan, the more expensive it will ultimately be.

Under both the Bush administration's proposal and many of the variations finding favor among Democrats, the government would buy up to $700 billion in shaky assets now on the books of financial companies. As the government does so, it will be forced to grapple with the same question that has vexed the brightest minds on Wall Street for more than a year: What are the darn things worth?

The very reason for the financial crisis of the last 14 months is that no one knows for sure. Wall Street created securities so complex that their value can swing wildly depending on what happens to the overall housing market. For example, a particular type of mortgage-backed security might offer a giant payout if home prices only drop another 10 percent, but be worthless if they drop another 15 percent.

by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:54:06 PM EST
[ Parent ]

the more effective the plan, the more expensive it will ultimately be.

Effective at what, exactly? Saving bankers? Yep.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 04:12:34 AM EST
[ Parent ]
This pisses me off to no end because we now have new internal rules that are going to certainly limit our ability to lend to projects in the near future - which means that the sectors of banks that did nothing stupid and never lost money are being penalised (and of course, the bosses that oversaw the stupidest stuff are still there).

Sigh...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 04:14:53 AM EST
[ Parent ]
Foreign Nations Pledge Support, but Not Financing  | NY Times

WASHINGTON -- The United States, having expanded its proposed rescue of the financial sector to include foreign banks, has not yet found any other country willing to join the landmark bailout.

The Treasury Department still hopes to marshal a worldwide effort to cleanse the balance sheets of banks. But Europe and Japan have signaled that they are not ready to mount a rescue of the kind being debated here.

Treasury Secretary Henry M. Paulson Jr. continues to solicit support from foreign governments. His department plans to prod them by giving preference to banks from countries that show a willingness to help the American effort, a senior administration official said Monday.

"We expect other countries to do their part, but we're not insisting their programs be exactly like ours," said the official, who spoke on condition of anonymity. "We're certainly not prepared to put ourselves in a position where there's a free-rider problem."

Given that the mortgage collapse began here and that most of the distressed debt is held by American banks, specialists said it was not clear that the United States had much leverage in forcing others to take part.

"There's a view in Europe that this is a U.S.-made problem, and that it should be solved in the U.S.," said Charles H. Dallara, the managing director of the Institute for International Finance, a group of 340 global banks.

by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:56:30 PM EST
[ Parent ]

 "We're certainly not prepared to put ourselves in a position where there's a free-rider problem."

Bankers are not free-riders, they are a vital part of the economy (the one that holds the gun to your head)

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 04:16:03 AM EST
[ Parent ]
this bailout, the longer i think about it, the phrase 'perfect crime' keeps popping in my head.

paulson makes a great 'dr. doom', straight from central casting, better than chertoff even, hell, better than rudy!

'we've cracked it, the blame is too diffused to haunt us, we've taken the world's savings hostage, and we're holding an ak-47 to the head of anyone who wants to threaten our getting away with the hooch...(evil cackle)

the other phrase that recurs to the point of agony, is 'too big to fail'...

the images engendered by that are surreal.

the most recent and compelling is an elephant stepping out onto thinning ice!

i mean really, they were too big to fail, they failed anyway, so the recipe for success is to hand them a fat cheque, (just for aperitivo), unlimited political over-ride power, and total freedom from accountability by rule of law.

makes total sense, huh?

the sopranos were such amateurs...

"I freed thousands of slaves. I could have freed thousands more, if they had known they were slaves." -Harriet Tubman .

by melo (melometa4(at)gmail.com) on Tue Sep 23rd, 2008 at 06:41:21 AM EST
[ Parent ]
I'm sure I've mentioned this before, but during the 80's there was an episode of World in Action, (The major commercial channel current affairs program, the equivalent of the BBC's panorama) where one of the big 60's UK gangsters was released from prison, they took him out to show them where all the crooks were in modern day London.

He took them to the city of London and gave a speach, which was sampled into a late 80's dance track.

Give a politician an inch, and he'll think he's a ruler

by ceebs (bunchofwankers (at) gmail (dot) com) on Tue Sep 23rd, 2008 at 09:29:53 AM EST
[ Parent ]
After a bit of a hunt the relevent quotes taken from the song lyrics.

Polychronicon of Adeeva: Two thieves and a liar

"I've done a few dealings in the city
met a number of stockbrokers
and i can tell you in all my life that i've never seen
such dishonesty and greed
it's like a big betting shop a bookies a casino
where the're all screwing each other and the rest of the world"

Polychronicon of Adeeva: Two thieves and a liar

"when the jews and italian communities went to america right
they landed in a new country that was ripe for organisation and for rackets
now in this country thats not possible
because the real power the real money the real rackets
have been going on over here for hundreds of years
all stitched up and passed on from generation to generation
and the american gangsters right,
theyr'e still struggling to get the respectability that theyr'e after
but we've had three centuries headstart on those buggers
and look haven't we done a beautiful job of it an' all
i bet you there are millions of people right that think
that the blokes who work here in the city are really good blokes
hard working who have got the economy of this nation deep in their hearts
what a load of cobblers it's the best confidence trick in history"


Give a politician an inch, and he'll think he's a ruler
by ceebs (bunchofwankers (at) gmail (dot) com) on Tue Sep 23rd, 2008 at 10:10:07 AM EST
[ Parent ]
FT.com / In depth - Fears emerge over $700bn rescue

The dollar buckled, stocks tumbled and the price of oil jumped on Monday as the $700bn (£376bn) US government bail-out plan for the financial sector made slow progress in Washington and once-mighty Wall Street names turned to Japan to safeguard their future.

Meanwhile, the Federal Reserve threw open the doors to investment in the US banking industry by private equity firms, sovereign wealth funds and corporate investors - in the hope that this would direct much-needed capital to US banks.

After the roar, the whimper?

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 01:32:58 AM EST
[ Parent ]
Buffett's time bomb goes off on Wall Street | U.S. | Reuters

But credit default swaps -- complex derivatives originally designed to protect banks from deadbeat borrowers -- are adding to the turmoil.

"This was supposedly a way to hedge risk," says Ellen Brown, the author of the book "Web of Debt."

"I'm sure their predictive models were right as far as the risk of the things they were insuring against. But what they didn't factor in was the risk that the sellers of this protection wouldn't pay ... That's what we're seeing now."

Brown is hardly alone in her criticism of the derivatives. Five years ago, billionaire investor Warren Buffett called them a "time bomb" and "financial weapons of mass destruction" and directed the insurance arm of his Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research, Stock Buzz) to exit the business.



When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 01:58:22 AM EST
[ Parent ]
I fully concur.
I was interviewing people some time ago about CDS for a project in which I am a consultant. We had a "no-understanding" moment when I tried to ask about how the risk profile of the CDS originator was priced.

They explained that there was a market for CDS indeed but that it's the risk of the counterpart that is priced (in case I hadn't got that).
After I reworded they saw that I had got that. And they admitted that, indeed, some CDS had become worthless because the originator had defaulted. But apparently that was never taken into account in the pricing.

Look, I had at that time only 6 months of working experience in a banking environment, the first 4 of which being on HR projects. And it did not even take me a couple of seconds to see the problem. I can only see two possibilities:
-People involved in those markets saw the problem and deliberately pretended it wasn't there (they sure didn't make much noise about it).
-To work in derivatives, there is a requirement that, even though you must be mathematically proficient, you must be terminally stupid and unable to understand any of the figures you process.

"The womb that spawned that thing is fertile yet"

by Cyrille (cyrillev domain yahoo.fr) on Tue Sep 23rd, 2008 at 05:21:33 AM EST
[ Parent ]
I think there is a bit of both:

  • Certainly as Jerome notes, many people knew there were problems and turned a blind eye. The head of Citigroup was quoted saying "while the music is playing, we'll keep dancing"...

  • I've observed amongst the quants I've known that many times they are systematically excluded from understanding the connection between the systems they create and the "market realities" involved. In part this is an issue of IP, the people in charge don't want the quants to understand too much of the model, in case they go work for someone else. But I also believe in part it's because they want to restrict the labour power of the quants they employ too.
by Metatone (metatone [a|t] gmail (dot) com) on Tue Sep 23rd, 2008 at 05:41:47 AM EST
[ Parent ]
That, and, at least in France, it is not unheard for Mathematicians to have a weak grasp of the realities they model, already in Physics. No reason why it'd be different in Finance, where the "realities" are even further from common sense.

In my experience, the computer programmers were often barely aware of such concepts as "what's a CDS"...

Un roi sans divertissement est un homme plein de misères

by linca (antonin POINT lucas AROBASE gmail.com) on Tue Sep 23rd, 2008 at 09:15:29 AM EST
[ Parent ]
China paper urges new currency order after financial tsunami | U.S. | Reuters

BEIJING (Reuters) - Threatened by a "financial tsunami," the world must consider building a financial order no longer dependent on the United States, a leading Chinese state newspaper said on Wednesday.

The commentary in the overseas edition of the People's Daily said the collapse of Lehman Brothers Holdings Inc (LEH.P: Quote, Profile, Research, Stock Buzz) "may augur an even larger impending global 'financial tsunami'."

The People's Daily is the official newspaper of China's ruling Communist Party, and the overseas edition is a smaller circulation offshoot of the main paper.

Its pronouncements do not necessarily directly reflect leadership views, but this commentary by a professor at Shanghai's Tongji University suggested considerable official alarm at the strains buckling world financial markets.

China's central bank earlier this week cut its lending rate for the first time in six years, a move analysts said was aimed at bolstering the economy and the battered stock market.

"The eruption of the U.S. sub-prime crisis has exposed massive loopholes in the United States' financial oversight and supervision," writes the commentator, Shi Jianxun.

"The world urgently needs to create a diversified currency and financial system and fair and just financial order that is not dependent on the United States."

Tried to find this on the People's Daily but couldn't.

When locusts move on, they leave nothing behind

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 02:11:52 AM EST
[ Parent ]
Retirees Filling the Front Line in Market Fears - NYTimes.com
Older Americans with investments are among the hardest hit by the turmoil in the financial markets and have the least opportunity to recover.

As companies have switched from fixed pensions to 401(k) accounts, retirees risk losing big chunks of their wealth and income in a single day's trading, as many have in the last month.

"There's a terrified older population out there," said Alicia H. Munnell, director of the Center for Retirement Research at Boston College. "If you're 45 and the market goes down, it bothers you, but it comes back. But if you're retired or about to retire, you might have to sell your assets before they have a chance to recover. And people don't have the luxury of being in bonds because they don't yield enough for how long we live."

Today's retirees have less money in savings, longer life expectancies and greater exposure to market risk than any retirees since World War II. Even before the last week of turmoil, 39 percent of retirees said they expected to outlive their savings, up from 29 percent in 2007, according to a survey by the Employee Benefit Research Institute, an industry-sponsored group in Washington.

"This really highlights the new world of retirement," said Richard Johnson, a principal research associate at the Urban Institute in Washington. "It's a much riskier world for retirees, because people don't have defined-benefit plans. They have pots of money and they have to worry about making it last."



"Ideas or the lack of them can cause disease." - Kurt Vonnegut
by dvx (dvx.clt ät gmail dotcom) on Tue Sep 23rd, 2008 at 03:43:31 AM EST
[ Parent ]
This is by DESIGN. The endless promotion of 'market based' retirement savings works very well to tie large chunks of the population to the performance of stock indices, and must contribute to more players seeming 'too big/important to fail'. After all, it is not just the money of the rich and fabulous in the market. It is also mom and pop, and their meagre 401Ks. Which could lead to convenient 'solidarity' for bailouts. Let's not forget how eager the market enthusiasts were to attempt to move even national retirement schemes (social security in the US) to market based rather than defined benefit plans. Fortunately they were not as successful as they might have been.
by someone (s0me1smail(a)gmail(d)com) on Tue Sep 23rd, 2008 at 04:16:05 AM EST
[ Parent ]
Indeed. And I remember hearing people in the 90s saying that stocks would never fall again because the constant influx of retirement money would keep prices rising indefinitely.

"Ideas or the lack of them can cause disease." - Kurt Vonnegut
by dvx (dvx.clt ät gmail dotcom) on Tue Sep 23rd, 2008 at 04:27:22 AM EST
[ Parent ]
Hah! Surely the "demographic crisis" and the "baby boomer bulge" always implied the opposite?

That's what I feared anyway.

by Metatone (metatone [a|t] gmail (dot) com) on Tue Sep 23rd, 2008 at 04:54:35 AM EST
[ Parent ]
What a very odd remark.

Even if there hadn't been a baby boomer bulge, this is saying:
-that prices would keep rising even though stocks would become obviously overvalued. So retirement money would end up going into the fund of lowest return.
-the inflow would always greatly exceed the outflow.

You are what you choose to believe...

"The womb that spawned that thing is fertile yet"

by Cyrille (cyrillev domain yahoo.fr) on Tue Sep 23rd, 2008 at 05:44:45 AM EST
[ Parent ]
It is odd, what can I say?

Except that a lot of people drank that kool-aid.

"Ideas or the lack of them can cause disease." - Kurt Vonnegut

by dvx (dvx.clt ät gmail dotcom) on Tue Sep 23rd, 2008 at 06:48:54 AM EST
[ Parent ]
Russian Warships Sail to Venezuela - NYTimes.com

A squadron from the Russian Navy's North Sea Fleet sailed for Venezuela on Monday, a Russian Navy spokesman said, in a bid by Russia to bolster military links in Latin America as relations with the United States continue to deteriorate.

The convoy -- including the nuclear-powered guided missile cruiser Peter the Great and the anti-submarine ship Admiral Chabanenko -- left the fleet's base in Severomorsk bound for the Venezuelan coast, where the ships will take part in joint maneuvers with the Venezuelan Navy sometime in November, said Igor Dygalo, a Russian Navy spokesman.



Truth unfolds in time through a communal process.
by marco (cowannar at gmail punkt com) on Mon Sep 22nd, 2008 at 10:31:55 PM EST
[ Parent ]
The bailout: A hundred billion here, there, everywhere
10:14 PM, September 22, 2008  LA Times Money & Co. blog

The numbers coming out of Washington in the last few weeks have been so huge, it all begins to sound like Monopoly money.

Too bad it's all real, and mostly coming from taxpayers' pockets -- if not right away, then down the line.

-skip-

Here is a handy tally from Merrill Lynch & Co. economists of the money now committed as part of the financial-system bailout:

--- Treasury commitment to buy mortgage-related assets from banks: $700 billion.

--- Treasury capital commitment to Fannie Mae and Freddie Mac: up to $200 billion.

--- Expansion of temporary dollar "swap" lines with foreign central banks: $180 billion.

--- Treasury fortifying of the Federal Reserve's balance sheet: $100 billion.

--- Federal Reserve loan to American International Group: $85 billion.

--- Treasury commitment to insure money market mutual funds: $50 billion.

--- Federal Reserve loans to banks via discount window: $33 billion.

--- Federal Reserve loans to securities dealers: $20 billion.

--- Treasury initial planned purchases of Fannie Mae and Freddie Mac mortgage securities: $10 billion.

 Only $1.4 Trillion so far!

If sanity be culturally normative, then by the norms of this culture I claim insanity.
by ARGeezer on Tue Sep 23rd, 2008 at 01:46:06 AM EST
[ Parent ]
What's the problem ? That's only 18 months of Iraq.

But don't worry, the ex-editor of the Economist rides to the rescue in the Guardian

Guardian - Bill Emmott - The US can afford to pay for this rescue

There has been much hyperactive talk about how vast the US rescue plan is, and how earth-shattering will be the extension of government that it represents. This is misleading: the rescue is indeed very large, but so is the American economy. The federal government is already in debt to the tune of $5.4 trillion, which sounds impossibly large if you don't realise that the US's annual GDP is nearly $14 trillion. This isn't Italy, in other words: there is room to add another few trillion to the debt.

The annual cost on the budget deficit in the first year could be $700bn, larger even than the impact of the Iraq war. But that, too, is misleading if you don't realise that the US federal deficit currently is less than 3% of GDP - smaller than Britain's (3.8%). Similarly, this extra debt is unlikely, of itself, to lead to a new decline in the dollar, as some have predicted

Phew ! We're saved, the neoliberals have ridden to our rescue.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Sep 23rd, 2008 at 06:59:05 AM EST
[ Parent ]
when the Economist will use that same argument when a $700 billion plan to provide single payer health care, or to invest massively in public transport is brought forward.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Tue Sep 23rd, 2008 at 08:15:44 AM EST
[ Parent ]
Well, they could propose how to pay for it out of money that could conceivably be raised: enact a 30% wealth tax on all individuals with assets worth more than $20 million or couples with assets worth more than $40 million and all family trusts.  In the case of illiquid assets such as real estate, make it a garnishment payable at death. In the case of financial assets such as stocks, bonds, etc. require payment in kind.  

What is left over after setting accounts on Wall Street aright could be use to set Medicare and Social Security on sound footings through the retirement of the baby boomers and finance the reconstruction of our energy and transportation infrastructure.  I don't have the hard figures, but my sense of wealth distribution and absolute wealth suggests that 30% would be adequate.

This plan would have two outstanding advantages:

  1. Those who brought us this calamity would end up paying for it.
  2. It would provide wealthy citizens a powerful motive to insist on "responsible government regulation" of financial entities for at least a couple of generations.


If sanity be culturally normative, then by the norms of this culture I claim insanity.
by ARGeezer on Tue Sep 23rd, 2008 at 10:22:57 AM EST
[ Parent ]
Iran president blames Wall Street turmoil on U.S. 'military engagement' - Los Angeles Times
NEW YORK -- Iranian President Mahmoud Ahmadinejad declared Monday that the turmoil on Wall Street was rooted in part in U.S. military intervention abroad and voiced hope that the next American administration would retreat from what he called President Bush's "logic of force."

He also asserted, in an interview with The Times, that Israel was doomed like "an airplane that has lost its engine" and that Western intelligence documents questioning the peaceful purpose of Iran's nuclear program were crude forgeries.


When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 01:53:20 AM EST
[ Parent ]
World leaders renew promises to help Africa | International | Reuters

UNITED NATIONS (Reuters) - World leaders and top officials on Monday renewed pledges to help Africa dramatically reduce poverty, but African governments told rich nations they are lagging on previous promises of increased aid.

In a political declaration after a U.N. meeting on Africa's development needs, countries pledged to mobilize resources to end poverty, hunger and underdevelopment.

"We stress that eradicating poverty, particularly in Africa, is the greatest global challenge facing the world today," they said.

The meeting expressed concern that commitments by rich industrialized nations of doubling aid to Africa by 2010 will not be reached, while also welcoming new aid flows from emerging economies and the private sector.



When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 01:56:10 AM EST
[ Parent ]
When I see a $700 billion commitment, I will believe it's more than words.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 03:39:41 AM EST
[ Parent ]
White House presses for swift action by Congress on bailout
As turmoil continues on Wall Street, the Bush administration must accommodate Democratic demands.
By Peter G. Gosselin and Richard Simon, Los Angeles Times Staff Writers
September 23, 2008
WASHINGTON -- Rushing to win quick congressional -- and public -- approval for its $700-billion bailout of the tottering financial system, the Bush administration moved toward compromises Monday that would have been inconceivable even a few weeks ago, including new aid for debt- laden homeowners.

But even as negotiators signaled that some version of the bailout bill would almost certainly pass, perhaps this week, the financial markets threatened to pop another rivet.

The Dow Jones industrial average sank 372.25 points, or 3.3%, on Monday after climbing nearly 800 points over two days last week on initial word of the rescue proposal. As many investors shifted money from stocks to commodities as the trading week began, the price of oil, gold and other commodities soared, while the dollar plunged against other major currencies.

Meanwhile, President Bush ratcheted up pressure for a deal.

"The whole world is watching to see if we can act quickly to shore up our markets and prevent damage to . . . businesses, our housing sector and retirement accounts," he said in a statement.

The action now centers on bargaining between Treasury Secretary Henry M. Paulson and Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.

Although the measure must also pass the Senate, the administration has apparently calculated that if it can win House approval, senators will go along. Administration officials are understood to have had only a few conversations with Frank's Senate counterpart, Sen. Christopher J. Dodd (D-Conn.), chairman of the Senate Banking Committee.

Frank laid out the price of his support for the government bailout Sunday in a 42-page draft that congressional staffers and administration officials said was now the working document for negotiations.

In a briefing for reporters, Frank said agreement had been reached in several broad areas, among them: creation of an independent oversight board to monitor the Treasury Department's handling of the bailout and a requirement that the department seek to minimize home foreclosures by slicing the interest rate and even the outstanding loan amount of many of the troubled mortgages it buys.

Frank said at the early afternoon briefing that he and Paulson had also agreed to a Democratic proposal for Washington to get rights to buy stock in the companies whose troubled assets the government buys. That would allow taxpayers to benefit from increases in the companies' stock prices. But by the end of the day Frank indicated that an obstacle to agreement on such a provision had developed, though he didn't elaborate.

House Democrats and the Bush administration also remained far apart on several crucial issues.

For example, Frank wants to give the government the power to cap the compensation of executives of the firms helped by the bailout.

"I just think it is inconceivable . . . that the taxpayer should put money at risk because of bad decisions made by people who would then continue to be rewarded without any restriction," Frank said.



If sanity be culturally normative, then by the norms of this culture I claim insanity.
by ARGeezer on Tue Sep 23rd, 2008 at 01:58:58 AM EST
[ Parent ]
Hi ARGeezer, thanks for all the links you are posting in the Salon and elsewhere on ET!

However, for copyright reasons it would be better to limit the amount of paragraphs you post. As a rule of thumb we recommend to post 3-5 paragraphs, not more, just to be on the safe side. People can always use the link to read the entire article. :-)

by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 02:08:59 AM EST
[ Parent ]
Thanks for the rule of thumb.  I will try to follow it.

If sanity be culturally normative, then by the norms of this culture I claim insanity.
by ARGeezer on Tue Sep 23rd, 2008 at 02:14:12 AM EST
[ Parent ]
One possible problem for the Administration is that Barney Frank is the first openly gay Member of Congress.    The Administration might fear that their homophobic base will get upset if they thing that the Administration is being, umm, "bested" by Barney.

If sanity be culturally normative, then by the norms of this culture I claim insanity.
by ARGeezer on Tue Sep 23rd, 2008 at 02:16:44 AM EST
[ Parent ]
Japan's ruling party hopes Aso will restore its reputation | csmonitor.com

Tokyo - He's a veteran politician known for his unruly tongue and gaffes that have alienated everyone from the nation of China to the elderly and the infirm. He's a former Olympic sharpshooter who avows a deep interest in manga comics, one of Japan's most popular cultural exports. He has an affinity for gold necklaces.

Now, Taro Aso is being tapped by the Liberal Democratic Party, which has presided over Japan for most of the past half-century, as the one to restore its badly tarnished reputation at home - and offer reassurance abroad that the world's second-largest economy speaks with a steady voice at a time of global financial turmoil and pressing diplomatic concerns.

Mr. Aso easily walked away with the party's presidency Monday, garnering 351 of the 525 votes cast and trouncing four competitors. All but certain to become Japan's 13th prime minister in 19 years, pending approval by the LDP-controlled lower house of parliament Wednesday, he promises a sharp counterpoint to his lackluster predecessor. He may try to capitalize on that fresh tone - as well as an expected ratings bounce - by quickly calling a general election.



When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 02:15:00 AM EST
[ Parent ]
Japan residents calling! What do present polls show? Would the LDP have a chance in snap elections? Or would the opposition at last wash them away?

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 03:50:01 AM EST
[ Parent ]
Sorry, I don't own a TV, or manage to regularly follow the English language print media here.  The start of this new semester has been a total disaster as we lost our science teacher, and have been subbing his classes until a replacement could be scrounged up.
by Zwackus on Tue Sep 23rd, 2008 at 06:44:39 AM EST
[ Parent ]
Pakistan blames US raids for hotel bombing - Asia, World - The Independent

The Pakistani President, Asif Ali Zardari, will plead with President George Bush today to change a policy which is being blamed for one of his country's worst terrorist atrocities.

"We hope the US will change policy because this is what is needed," said Pakistan's ambassador to the UK, Wajid Shamsul Hassan, after 53 people were killed and more than 250 injured in the bombing of the Marriott Hotel in Islamabad. He argued that the Bush administration's decision to allow cross-border incursions from Afghanistan into Pakistan, including by ground forces on at least one occasion, had been counterproductive "because they are not killing high-value targets, they are killing civilians".

Mr Zardari's talks with President Bush in New York, on the sidelines of the UN General Assembly, have been scheduled amid heightened security fears in the wake of the bombing.

by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 02:19:05 AM EST
[ Parent ]
Guardian - Tariq Ali - Casualties of another war

In my view, however, the expansion of the war relates far more to the Bush administration's disastrous occupation in Afghanistan. It is hardly a secret that President Karzai's regime is becoming more isolated each passing day, as Taliban guerrillas move ever closer to Kabul.

When in doubt, escalate the war, is an old imperial motto. The strikes against Pakistan represent - like the decisions of President Richard Nixon and Henry Kissinger, to bomb and then invade Cambodia - a desperate bid to salvage a war that was never good, but has now gone badly wrong.



keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Tue Sep 23rd, 2008 at 07:08:45 AM EST
[ Parent ]
Friction Infiltrates Sunni Patrols on Safer Iraqi Streets - NYTimes.com
BAGHDAD -- In Adhamiya, a neighborhood that only a year ago was among the most dangerous in Baghdad, the violence last week seemed almost negligible. A shootout near a checkpoint left two people dead on Sunday. Another man was killed on Monday by a small bomb placed under a car.

[...]

But the deaths quickly drew the attention of the American officers stationed in the neighborhood. Both outbursts involved members of the Awakening Councils, the citizen patrols paid by the United States to fight the insurgency.

And both were seen as a worrisome sign of the tension and infighting that have rippled through the Sunni-dominated Awakening groups in recent weeks, just as the American military plans to transfer control of about half the councils to the Shiite-led government.

[...]

But in Adhamiya and in some other areas of Iraq, the patrols, hailed by many as heroic for making the streets safer, have posed increasing problems. Commanders quarrel and jockey for power and territory. Finger-pointing and threats are common. Some residents complain that the men, not a few of them swaggering street toughs, use their power to intimidate people. Sometimes violence erupts.

... and you know they're gonna say there's no way anyone could have seen this coming.

"Ideas or the lack of them can cause disease." - Kurt Vonnegut

by dvx (dvx.clt ät gmail dotcom) on Tue Sep 23rd, 2008 at 03:28:07 AM EST
[ Parent ]
South African's Resignation Poses Risks for Zimbabwe Power-Sharing Deal - NYTimes.com

HARARE, Zimbabwe -- Thabo Mbeki's resignation as president of South Africa could hardly have come at a worse time for Zimbabwe, where he had just brokered a power-sharing deal that has now reached a pivotal -- and perilous -- moment, analysts say.

Morgan Tsvangirai, the leader of Zimbabwe's opposition and the prime minister-designate, said Monday that the fall of Mr. Mbeki, the region's most influential politician, was a blow to Zimbabwe.

But he also said it was now incumbent on the African leaders who named Mr. Mbeki the mediator for Zimbabwe to ensure that the promise of the deal was fulfilled, despite the uncertainty about whether Mr. Mbeki would continue in the role.

"I think they're aware of their responsibility to complete the negotiations," said Mr. Tsvangirai, who spoke with serious understatement during an interview in the private study of his home here in the capital. The interview was Mr. Tsvangirai's first since Mr. Mbeki was effectively fired by his own party just days after triumphantly concluding the Zimbabwe agreement.

Mr. Tsvangirai, 56, and Zimbabwe's president, Robert Mugabe, 84, are at an impasse in the first crucial test of Mr. Mugabe's willingness to relinquish some of the complete control he has exercised during 28 years in power. Mr. Mugabe did not enter negotiations until July, after African election monitors concluded that a June runoff was not free or fair and African leaders insisted on talks. He said at the signing ceremony for the agreement that he was committed to it.



"Ideas or the lack of them can cause disease." - Kurt Vonnegut
by dvx (dvx.clt ät gmail dotcom) on Tue Sep 23rd, 2008 at 03:32:00 AM EST
[ Parent ]
Afghan Official Kidnapped in Pakistan - NYTimes.com

ISLAMABAD, Pakistan -- As diplomatic missions beefed up their security in the aftermath of the Marriott Hotel bombing on Saturday, a senior Afghan diplomat was kidnapped Monday when militants fired on his car in the northwest city of Peshawar.

Five or six gunmen opened fire at the car of the diplomat, Afghanistan's consul general, as it passed through a wealthy neighborhood of Peshawar, according to the Afghan Foreign Ministry.

The driver was killed and the consul, Abdul Khaliq Farahi, was taken away, the Foreign Ministry spokesman, Sultan Ahmad Baheen, said. Mr. Farahi, who has served in Peshawar since 2001, was one of several candidates to become Afghanistan's next ambassador to Pakistan.

The kidnapping was yet another indication of the country's rising insecurity, which spread to the capital, Islamabad, with the Marriott bombing. The attack killed 53 people, including the Czech ambassador and two United States defense officials.



"Ideas or the lack of them can cause disease." - Kurt Vonnegut
by dvx (dvx.clt ät gmail dotcom) on Tue Sep 23rd, 2008 at 03:33:41 AM EST
[ Parent ]
ANC deputy leader expected to be interim president of South Africa | World news | The Guardian

The South African government is poised to shift to the left after the ruling African National Congress indicated that its deputy leader, Kgalema Motlanthe, a prominent trade unionist, will become interim president following Thabo Mbeki's forced resignation.

The ANC will not publicly confirm Motlanthe's selection until parliament is formally informed and votes in the new president, for the remaining nine months of Mbeki's term, on Thursday.

But yesterday the ANC leader, Jacob Zuma, hinted that Motlanthe was the choice and party officials did not deny it.

"I am convinced, if given that responsibility, he would be equal to the task," Zuma told reporters.

However, it appeared that Mbeki has not given up the political wrangle with Zuma after a Johannesburg radio station reported that the outgoing president has attached his name to a legal petition seeking to overturn the high court ruling earlier this month that threw out a long-standing corruption case against Zuma and accused Mbeki of misusing the judicial system to keep his rival from power. It was that ruling that prompted the ANC leadership to vote to remove Mbeki.

Motlanthe, who was jailed for 10 years by the apartheid regime, played a leading role in ousting Mbeki and installing Zuma as ANC leader last year.



"Ideas or the lack of them can cause disease." - Kurt Vonnegut
by dvx (dvx.clt ät gmail dotcom) on Tue Sep 23rd, 2008 at 03:49:39 AM EST
[ Parent ]
Bloomberg: Democrats Work With Paulson on Rescue; Some Republicans Object
Members of President George W. Bush's own party are voicing their opposition to his financial rescue plan even as Democratic leaders narrow their differences with the administration.

Congressional leaders said the $700 billion measure is needed to calm market turmoil and they hope to complete talks and pass the measure as soon as this week. Treasury Secretary Henry Paulson agreed with Democratic demands that Congress can create an oversight structure, House Financial Services Committee Chairman Barney Frank said.

Accord between Democrats and the Bush administration came as Alabama Senator Richard Shelby, the top Republican on the Senate Banking Committee, said the proposal is ``neither workable nor comprehensive, despite its enormous price tag.'' Another Republican senator, Jim DeMint of South Carolina, said Paulson's plan ``could make matters worse by socializing an entire sector of the U.S. economy.''

Quick, someone mail Senator Shelby a copy of The New Industrial State.

(This is dated 6 hours ago, so it is more current than the stories last night where Frank's bolded claim was denied)

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

by Migeru (migeru at eurotrib dot com) on Tue Sep 23rd, 2008 at 06:29:35 AM EST
[ Parent ]
I was going to write a diary on this when I got home tonight, but Krugman beat me to it :-)
I've had more time to read the Dodd proposal -- and it is a big improvement over the Paulson plan. The key feature, I believe, is the equity participation: if Treasury buys assets, it gets warrants that can be converted into equity if the price of the purchased assets falls. This both guarantees against a pure bailout of the financial firms, and opens the door to a real infusion of capital, if that becomes necessary -- and I think it will.
Not only equity, but also possibly contingent debt if the assets are bought from unlisted companies.

I think there's still scope for a diary, if Jerome or Bonddad don't beat me to it :-)

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

by Migeru (migeru at eurotrib dot com) on Tue Sep 23rd, 2008 at 09:05:12 AM EST
[ Parent ]
If yes, please with a glossary for those not proficient in (English) Financialese...

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 09:25:34 AM EST
[ Parent ]
Will do, it's not the first time I write a diary and you tell me the jargon stomped you.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Tue Sep 23rd, 2008 at 09:32:38 AM EST
[ Parent ]
Bloomberg.com: Latin America
Saying recent oil discoveries give Brazil new opportunities it can't squander, Lula outlined wide-ranging investment needs including $73 billion for energy projects, $70 billion for housing developing, $58 billion for shipbuilding and $25.8 billion for pulp and paper. He also detailed investments needed for improving infrastructure, building refineries and constructing a high-speed train.

Much of the program seems presents for business ($25.8 billion for pulp and paper!?), but the overall idea seems similar to that of the more hard-left Latin American countries. And note the high-speed railway! So on the US continent, both Argentina and Brazil might precede the US.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Sep 23rd, 2008 at 09:49:47 AM EST
[ Parent ]
McCain Loses His Head | George Will | Washington Post
"The queen had only one way of settling all difficulties, great or small. 'Off with his head!' she said without even looking around."

-- "Alice's Adventures in Wonderland"

Under the pressure of the financial crisis, one presidential candidate is behaving like a flustered rookie playing in a league too high. It is not Barack Obama.

Channeling his inner Queen of Hearts, John McCain furiously, and apparently without even looking around at facts, said Chris Cox, chairman of the Securities and Exchange Commission, should be decapitated. This childish reflex provoked the Wall Street Journal to editorialize that "McCain untethered" -- disconnected from knowledge and principle -- had made a "false and deeply unfair" attack on Cox that was "unpresidential" and demonstrated that McCain "doesn't understand what's happening on Wall Street any better than Barack Obama does."

[...]

It is arguable that, because of his inexperience, Obama is not ready for the presidency. It is arguable that McCain, because of his boiling moralism and bottomless reservoir of certitudes, is not suited to the presidency. Unreadiness can be corrected, although perhaps at great cost, by experience. Can a dismaying temperament be fixed?

by gk (g k quattro due due sette "at" gmail.com) on Tue Sep 23rd, 2008 at 10:27:12 AM EST
[ Parent ]
Myanmar Frees Political Prisoner - NYTimes.com

Myanmar's longest-serving political prisoner, journalist Win Tin, was freed on Tuesday after 19 years in jail and immediately vowed to continue his struggle against 46 years of unbroken military rule.

"I will keep fighting until the emergence of democracy in this country," he told reporters outside a friend's house in the former Burma's main city, Yangon. He was still wearing his light-blue prison clothes.

The ailing 79-year old was arrested in July 1989 and sentenced to jail for giving shelter to a girl thought to have received an illegal abortion.



Truth unfolds in time through a communal process.
by marco (cowannar at gmail punkt com) on Tue Sep 23rd, 2008 at 10:52:29 AM EST
[ Parent ]
THIS, THAT, AND THE OTHER
by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:35:14 PM EST
Exclusive: The methane time bomb | The Independent
Arctic scientists discover new global warming threat as melting permafrost releases millions of tons of a gas 20 times more damaging than carbon dioxide

The first evidence that millions of tons of a greenhouse gas 20 times more potent than carbon dioxide is being released into the atmosphere from beneath the Arctic seabed has been discovered by scientists.

The Independent has been passed details of preliminary findings suggesting that massive deposits of sub-sea methane are bubbling to the surface as the Arctic region becomes warmer and its ice retreats.

Underground stores of methane are important because scientists believe their sudden release has in the past been responsible for rapid increases in global temperatures, dramatic changes to the climate, and even the mass extinction of species. Scientists aboard a research ship that has sailed the entire length of Russia's northern coast have discovered intense concentrations of methane - sometimes at up to 100 times background levels - over several areas covering thousands of square miles of the Siberian continental shelf.

In the past few days, the researchers have seen areas of sea foaming with gas bubbling up through "methane chimneys" rising from the sea floor. They believe that the sub-sea layer of permafrost, which has acted like a "lid" to prevent the gas from escaping, has melted away to allow methane to rise from underground deposits formed before the last ice age.

They have warned that this is likely to be linked with the rapid warming that the region has experienced in recent years.

by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:43:32 PM EST
[ Parent ]
Holy shit.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 03:49:05 AM EST
[ Parent ]
I hate to say this is old news, but it is. this acceleration effect has been frequently documented. Not that I'm downplaying it in any way but the Indy front-paged it like it was news and I thought that was fraudulent.

Heck I've even seen TV programmes where they set fire to russian lakes. Which actually may be a good idea in the long term. that or harvest the stuff.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Sep 23rd, 2008 at 07:13:50 AM EST
[ Parent ]
this acceleration effect has been frequently documented.

Do you mean as actually happening rather than predicted, and do you mean oceanic methane [the vast bulk of methane potewntially released]? Can you find sources?

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Sep 23rd, 2008 at 09:27:18 AM EST
[ Parent ]
Yes, although more as demonstrations on TV programmes like the one I mentioned where they set fire to a lake for fun (it practically exploded). So it's beginnning to happen, although they did say on the prog that it'd need to be a bit hotter to really begin to race away there.

I meant both permafrost capped methane as well as the oceanic stuff.

As to sources, jeez.....I thought it was common knowledge. I just googled permafrost methane and got a lot of hits going back a while. Undersea Methane hydrate is an issue as well, usually used as an explanation for ship losses in the "Bermuda Triangle". there are also similar phenomena in the North Sea called "Witching holes"

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Tue Sep 23rd, 2008 at 10:36:31 AM EST
[ Parent ]
Ah, that's what you mean. Yes, there is methane release from permafrost and there are the explored holes on the floor of the North Sea with sunken ships in some of them.

But it's not that methane releases would ever go back to zero. Note that there are opposed trends: methane itself will fall apart in reactions in the atmosphere, with the carbon in it usualy ending up in CO2; while via microbes munching on ocean-absorbed CO2, methane gets back into clathrates.

So what we are talking about is a significant tip of the balance, a greatly increased rate of methane releases. A few years back, there was a(n I believe British) study saying that methane release from moors is increasing across the world (don't know if and how well it held up against peer review, will have to look up), so I thought you meant that.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Sep 23rd, 2008 at 01:27:44 PM EST
[ Parent ]
Othersides, what are chances of clathrate guns not firing as their locations are warmed? Do we have evidence of warmings with these sediments staying stable?
by das monde on Fri Oct 3rd, 2008 at 03:23:34 PM EST
[ Parent ]
Suggested reading from Wikipedia: Methane Clathrates and Clathrate Gun Hypothesis.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Tue Sep 23rd, 2008 at 07:22:46 AM EST
[ Parent ]
There is no solid evidence in the geological record that actually supports the occurrence of clathrate guns. In fact, arguments for the clathrate hypothesis have been becoming weaker and weaker since 2006.

Frozen Methane Chunks Not Responsible For Abrupt Increases In Atmospheric Methane

Icy chunks of frozen methane and water are not responsible for the periodic increases in atmospheric methane recorded in Greenland ice cores, according to a Penn State geoscientist. The ice core samples from the Greenland Ice Sheet Project II cover the last 40,000 years and present a picture of the Earth's climate over that time span.

I even diaried it...

And again:

This requires higher natural 13C-rich emissions or stronger sink fractionation than conventionally assumed. Constant 13CH4 during the rise in methane concentration at the YD-PB transition is consistent with additional emissions from tropical wetlands, or aerobic plant CH4 production, or with a multisource scenario. A marine clathrate source is unlikely.

And again.

And this year, again.

And before we forget:

It should be stressed that NOAA did register a slight uptick for 2007.

by Nomad on Tue Sep 23rd, 2008 at 10:31:05 AM EST
[ Parent ]
The clathrate gun as explanation for Younger Dryas/Preboreal warming and methane concentration changes seems ruled out, but not the bigger events.

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.
by DoDo on Tue Sep 23rd, 2008 at 02:04:05 PM EST
[ Parent ]
But unless the findings listed above are all wrong, it's tundra and peats that should be watched with greatest suspicions, not the clathrates. Just saying.

Of course clathrates could well be a second domino and top it off.

by Nomad on Tue Sep 23rd, 2008 at 04:43:56 PM EST
[ Parent ]
Your sources (I read through the abstracts, thanks especially for the newer ones, and Googled some even newer full articles citing them) suggest that during the YD/PB event, the methane release was more an effect than a trigger of rapid warming, thus blurping tundras may not be enough for a runaway effect.

Then again, can you give me (are you aware of) any comparisons between the immediate pre-cataclysm climatic conditions before the 55 mio BP and Permian events and those today? (At least modellists seem to say we are still far from the tipping point today.)

But back to the article quoted: do you think that they are over-interpreting the scale of what they observed?

*Traitor*, n.
A benighted individual who perceives an illusory distinction between serving his nation and abetting the criminals who govern it.

by DoDo on Tue Sep 23rd, 2008 at 05:06:10 PM EST
[ Parent ]
Then again, can you give me (are you aware of) any comparisons between the immediate pre-cataclysm climatic conditions before the 55 mio BP and Permian events and those today? (At least modellists seem to say we are still far from the tipping point today.)

Models, don't mention models to me... *snort *

In short, that's a diary. And I really shouldn't make any promises, too much promises left unfulfilled with respect to diaries this year... I'd say that the Palaeocene-Eocene boundary is the more interesting for comparisons with the contemporary climate. The problem: even while ocean seds can provide some climate proxies, correlation with modern-day values (and hence temperatures) is tenuous at best. The temperature reconstruction of the past 2000 years is still messy, let alone reconstructions that go back 55 million years.

do you think that they are over-interpreting the scale of what they observed?

Likely. The Independent had it wrong on hurricanes, wrong on sea level rise and they had it spectacularly wrong on the shutdown of the thermohaline circulation. Every time a science report comes out, they seem to take the worst possible scenario and write it up fostering a nice big cuppa Doom. I'm not holding my breath on this one either. I'll wait for the actual science publication.

by Nomad on Wed Sep 24th, 2008 at 04:52:30 AM EST
[ Parent ]
Modest Carbon Dioxide Cutbacks May Be Too Little, Too Late For Coral Reefs
Science News Share   Blog   Cite Print   Email   Bookmark Modest Carbon Dioxide Cutbacks May Be Too Little, Too Late For Coral Reefs

ScienceDaily (Sep. 23, 2008) -- How much carbon dioxide is too much? According to United Nations Framework Convention on Climate Change (UNFCCC) greenhouse gases in the atmosphere need to be stabilized at levels low enough to "prevent dangerous anthropogenic interference with the climate system."

But scientists have come to realize that an even more acute danger than climate change is lurking in the world's oceans--one that is likely to be triggered by CO2 levels that are modest by climate standards.

Ocean acidification could devastate coral reefs and other marine ecosystems even if atmospheric carbon dioxide stabilizes at 450 ppm, a level well below that of many climate change forecasts, report chemical oceanographers Long Cao and Ken Caldeira of the Carnegie Institution's Department of Global Ecology in the journal Geophysical Research Letters.

[...]

Atmospheric CO2 absorbed by the oceans' surface water produces carbonic acid, the same acid that gives soft drinks their fizz, making certain carbonate minerals dissolve more readily in seawater. This is especially true for aragonite, the mineral used by corals and many other marine organisms to grow their skeletons. For corals to be able to build reefs, which requires rapid growth and strong skeletons, the surrounding water needs to be highly supersaturated with aragonite.

"Before the industrial revolution, over 98% of warm water coral reefs were surrounded by open ocean waters at least 3.5 times supersaturated with aragonite" says Cao. "But even if atmospheric CO2 stabilizes at the current level of 380 ppm, fewer than half of existing coral reef will remain in such an environment. If the levels stabilize at 450 ppm, fewer than 10% of reefs would be in waters with the kind of chemistry that has sustained coral reefs in the past."

For the ecologically productive cold waters near the poles, the prospects are equally grim, says Cao. "At atmospheric CO2 levels as low as 450 ppm, large parts of the Southern Ocean, the Arctic Ocean, and the North Pacific would experience a rise in acidity that would violate US Environmental Protection Agency water quality standards." Under those conditions the shells of many marine organisms would dissolve, including those at the base of the food chain.



"Ideas or the lack of them can cause disease." - Kurt Vonnegut
by dvx (dvx.clt ät gmail dotcom) on Tue Sep 23rd, 2008 at 03:36:38 AM EST
[ Parent ]
KLATSCH
by the stormy present (stormypresent aaaaaaat gmail etc) on Mon Sep 22nd, 2008 at 09:35:36 PM EST
Some of the links posted above under my nick were emailed by the stormy present after she had trouble accessing the site. Credit be to her. (And thanks for posting the Salon..!)

When locusts move on, they leave nothing behind
by afew (afew(a in a circle)eurotrib_dot_com) on Tue Sep 23rd, 2008 at 02:21:02 AM EST
[ Parent ]
Cécilia returns to puncture Sarkozy's pomp - Times Online

THINGS have been going well in recent weeks for Nicolas Sarkozy, the French president. Seeing him on the telephone to Vladimir Putin, the Russian prime minister, while on holiday last month in the south of France, a friend called out from the other side of the swimming pool: "You are the master of the world."

Sarkozy, 53, who has sometimes been compared to Napoleon, may well believe it. From Kabul to Tbilisi, the pint-sized leader has a dog in each fight. He even struck out last week at Somali pirates who had taken a French couple hostage in the Gulf of Aden and stayed up all night to receive a blow-by-blow account of the daring rescue mission.

There is nothing like a vindictive former wife. however, for puncturing presidential pomp. The sudden reappearance on stage of Cécilia, who left Sarkozy for another man, was an unwelcome surprise for the French leader just when he thought that his troubled ex had been written out of the drama.

Cécilia, 50, was divorced from the president last October to marry Richard Attias, a Moroccan-born events organiser, but does not seem to have overcome the bitterness that prompted her, shortly after the separation, to accuse the hyperactive "Sarko" of being a karaoke-obsessed egotist incapable of true love.

[Murdoch Alert]
by Fran (fran at eurotrib dot com) on Tue Sep 23rd, 2008 at 02:23:54 AM EST
[ Parent ]
On the "Sarkozy the petty and ugly", apparently he got Cecilia's new husband fired from a job organising the Davos forum.

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Tue Sep 23rd, 2008 at 05:15:01 AM EST
[ Parent ]
On the "Sarah the pretty and petty", apparently she got her sister's ex-husband fired from a job as an Alaska state trooper.

Truth unfolds in time through a communal process.
by marco (cowannar at gmail punkt com) on Tue Sep 23rd, 2008 at 07:50:52 AM EST
[ Parent ]
Fran:
a karaoke-obsessed egotist

It's all just karaoke to the wingers. Sing a verse or two of 'My way', wave a shotgun around, flash some cash, and it's free drinks at the bar and the farm animal of your choice.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Tue Sep 23rd, 2008 at 09:03:24 AM EST
[ Parent ]


Display:
Go to: [ European Tribune Homepage : Top of page : Top of comments ]