Monthly reports on finance, business, trade,
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NEWNATIONS BULLETIN 03 AUGUST 2009
We look at how well or how badly have the world's nations measured up to the economic crisis. Our judgement is that they have failed, other than with 'band-aid' temporary solutions. The taxpayers money which was used to bail out the banks is now committed, involving a level of debt big enough to seriously stretch following generations in meeting the interest charges. But whilst bank collapse was averted this time, it is quite unclear how in future banks will be prevented from the casino antics that caused the problem. There is more to come. $ trillions of debt in the $60 trillion derivatives market have still to be unwound, its grotesque size due to speculation at insane levels of leverage of as much as 30:1. How will that be funded?
The common sense solution that in future would protect the taxpayer is that High Street banks that operate commercially in the conventional way as lenders to the real economy, and recipients of deposits, should be underwritten by the tax payer. There should be a clear separation from those investment organisations (don't licence them as banks, and don't give them depositor protection), that are prepared to use their investors money to support a high level of risk in financial instruments of baffling complexity and illusory security. Let their shareholders freely gamble risk / reward, risking speculators funds, but never again should the taxpayer be asked to bail them out because of the need to protect depositors funds. The distinction is hardly rocket science but seemingly national governments 'fear to tread'.
Our main point is that the political leaders of leading nation states (apart from Obama who came to power in January '09), during 08 and before, failed to stop the growing international crisis 'on their watch,' yet the same leaders of the same nations have ever since been individually cobbling together their own national solutions. In a world where finance is highly complex and totally international then international solutions are called for. We quote Henry Kissinger with whom we fully agree, on this issue.
Why Afghanistan?
Why are there western troops in AFGHANISTAN? Why not just bring them home? We look at why they are there and how it happens that, high risk though it is for military personnel, there is nowhere on earth more appropriate for this generation of brave members of the honourable profession of arms. Not only is it dangerous for them, but right now, AFGHANISTAN coupled with PAKISTAN is the biggest problem area confronting the ordered and civilised world, as we show in detail. We cannot afford to get it wrong!
Sad for democracy, Bad for democracy, Dumbing-down democracy
Newnations exists to promote democracy, so no surprise in these section headings. We examine the Iranian elections and its aftermath.IRAN did pretend to a form of democracy (albeit heavily controlled), but now the controlling priests have no further claim to represent the people. In the UK we look at how Rupert Murdoch led the rest in dumbing-down the British political scene and how he has enjoyed such great success. Now his tabloids are under fire for serial lawbreaking in computer hacking and phone-tapping. Also we tell the sad, overworked story of some British lawmakers caught fiddling their expenses, but putting it in a wider perspective.
North Korea: a nuclear power becoming even more belligerent
A comprehensive look at the bleak situation on the Korean peninsula now, as Hillary Clinton pointed out, they are friendless in all the world.
Whither Almighty Russia?
That question asked by generations of geopolitical observers is revisited in this issue. We look at the Caucasus (and the murder of Estimirova); reform of the Army; some healing in relations with the US; START negotiations; and the August Shanghai Co-operation Organisation meeting in Tajikistan.
Saudi in the balance
King Abdullah surprised with a welcome series of reforms but the succession to him is in doubt. The advent of Prince Nayef, the reactionary minister of the Interior, might see him as a candidate for the throne, which would reverse Abdullah's progressive approach.
Taiwan: Democracy in danger
Less than two years ago we applauded TAIWAN for having, without outside interference, achieved a very acceptable form of democracy for their small, but highly successful nation. Now that democracy is on the cusp. The immediate former president Chen, who lost the elections was put in jail, where he still languishes. He was principally distinguished as being a fearless campaigner for Taiwanese independence, but the new President Ma seems to be racing towards Taiwan being assimilated by CHINA, perhaps, the fear is without the electorate being consulted.
EU Candidates: Outsiders seeking to get in
We review the several candidates and their prospects.
Syria: Key to dialogue with IRAN
We observe that US ties with Syria are now a reality and this is one area of the middle east dispute more readily capable of resolution, whilst Israel drags its feet about concessions to the Palestinian shopping list. But apart from the proximity of SYRIA to the latter situation, we still see SYRIA as a likely prospect to ease US talks with IRAN.
India: Pakistan - a welcome meeting
We report on the two prime-ministers meeting in Egypt.
Libya still capable of surprises
Remember LIBYA repudiating nuclear weaponry in 2003? Now al Qaeda's North African chapter, the Libya Islamic Fighting Group has renounced terrorism as having failed to achieve its objectives. It can only be good.
Tuesday, 4 August 2009
newnations.com
ECONOMIC CRISIS: INADEQUATE SOLUTIONS
World Economic Crisis: 'Solutions' fail to convince
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