9/30/2011
Portfolio: 'Preparing for Greece's Failure'
Πηγή: Stratfor
Sep 29 2011
Vice President of (Stratfor's) Analysis Peter Zeihan examines the obstacles to Greek prosperity and the challenges in ejecting Greece from the eurozone.
Transcript
The financial news of the week again is about the eurozone and we are seeing lots of entities come up with lots of possible solutions about how to solve the eurozone problem. They all of course rest on what to do about Greece. The problem is, they are coming from the wrong angle. From STRATFOR’s point of view, Greece does not have a particularly bright future as a state before the eurozone crisis is taken into account.
Modern Greece has traditionally been supported by three pillars. First is shipping. As a culture that is mostly coastal it makes sense they would be very good at sailing; however, in the age of modern transport and super container ships, Greece simply can’t compete, and most of its ship building industry has long ago left for greener pastures in places such as Norway, China or Korea. The second pillar is tourism and this continues to be an option, but tourism by itself cannot support a modern state. The final option and the one that the Greeks have gotten the most mileage out of is leveraging Greece’s position. Typically to allow some external power a means of battling somebody in Greece’s neighborhood. When Greece achieved independence in the early 1800’s that external power was the United Kingdom who used Greece as a foil against the Turks. Later, the Americans played a similar role supporting Greece against the Soviets. In both cases massive volumes of capital came in to support Greece. However, in the post-Cold War era Turkey is a member of NATO, and while the Greeks might not get along with the Turks, nobody is looking to use Greece as a military foil against them. Greece no longer has a regional foe that it shares with anyone else. The closest might be the Turks again, but only if the Turks miscalculate their ongoing relationship with Israel or Cyprus and miscalculate very very badly.
Bottom-line, the various supports that have allow the Greek state to exist since the 1820’s simply aren’t there anymore and so the path forward goes like this: Greece is not salvageable. Greece simply can’t compete unless it is being given a constant, steady supply of capital from abroad that it doesn’t necessarily have to pay back. And even if that could be restarted, Greece can not emerge from its own debt load. It is simply too large. Greece has to be kicked out of the eurozone if the euro is to survive, but between here and there, first, a firebreak fund. The EFSF expansion has to happen because if you cannot sequester the 280 billion euro of Greek government debt that exists outside of Greece, then you’re going to trigger a massive financial catastrophe that the eurozone simply can’t survive. And so to prepare for a Greek ejection, you have to prepare a fund that can handle three things more or less simultaneously. First, you need about 400 billion euro to firebreak Greece off from the rest of eurozone. Second, you need about 800 billion euro in order to prevent a wide-scale banking meltdown, because the day that Greece defaults on that debt, the day that it’s ejected from eurozone, there will be catastrophic banking collapses in Portugal, Italy, Spain and France, probably in that order.
Third, the markets will go wild and the state that is in the most danger of falling after Greece is Italy. Using the bailouts that have happened to date as a template, any bailout of Italy would have to provide enough financing to cover all Italian needs for three years. That comes out to about another 800 billion euro. So until the Europeans have 2 trillion euro in funding stashed away, they can’t kick Greece out of the system.
Report: Israel scrambles IAF warplanes toward Turkish ship
Πηγή: Defencegreece
Sep 30 2011
Turkish media reports claim Israeli F-15s approached Turkish research vessel near contested Cyprus drilling area.
Israel Defense Forces jet fighters were scrambled toward a Turkish seismic research ship in the Eastern Mediterranean, Turkish media reported on Friday, in what seemed to be a further escalation in the already fraying ties between the once longtime allies.
According to the report, cited by the Turkish daily Today’s Zaman and based on a report by the Turkish Vatan daily, two Israel Air Force F-15s took off to face the Turkish vessel on Thursday night, flying through the airspace of both Cyprus and Turkish Cyprus.
The report added that the warplanes approached the Turkish ship despite incessant warnings by forces in Turkish Cyprus, according to which the planes had breached the territory’s airspace.
Ultimately, the report indicated, Turkey launched two F-16 fighters to track the Israeli planes, at which point the IAF fighter jets returned to Israeli airspace.
In addition, the report claimed that an IAF helicopter hovered over the ship, Piri Reis, while the ship was in the Aphrodite gas field off Cyprus’ southern coast and near to the larger Leviathan natural gas field.
The reported incident took place as Israel-Turkey ties continued to deteriorate over Israel’s refusal to apologize for its 2010 raid of a Gaza-bound aid flotilla which resulted in the deaths of nine Turkish nationals.
A recent inflammation in tensions came amid controversy over drilling rights in what could be natural gas-rich areas in the Eastern Mediterranean.
On Tuesday, Turkey said it was exploring for gas in an offshore zone where Cyprus started drilling last week, a provocative step in a dispute over Mediterranean resources.
Last week, Turkey and Turkish Cyprus signed a pact outlining maritime boundaries in the eastern Mediterranean, paving the way for gas exploration. Turkey said it would protect any research vessel with warships, raising the prospect of an armed stand-off.
On September 23, Turkey dispatched its only research vessel, the Piri Reis, to the eastern Mediterranean.
“Piri Reis, escorted by warships, has started research in the same area where Greek Cypriots are exploring,” Omer Celik, Vice Chairman of the ruling AK Party who oversees foreign affairs, said on Twitter.
“We have shown clearly to everyone that we will not allow the eastern Mediterranean to become a Greek Cyprus-Israel goal,” he said in another message.
Opening Closed Regimes: What Was the Role of Social Media During the Arab Spring?
Πηγή: Pitpi
Sep 11 2011
After analyzing over 3 million tweets, gigabytes of YouTube content and thousands of blog posts, a new study finds that social media played a central role in shaping political debates in the Arab Spring. Conversations about revolution often preceded major events on the ground, and social media carried inspiring stories of protest across international borders.
Focused mainly on Tunisia and Egypt, this research included creating a unique database of information collected from Facebook, Twitter, and YouTube. The research also included creating maps of important Egyptian political Websites, examining political conversations in the Tunisian blogosphere, analyzing more than 3 million Tweets based on key-words used, and tracking which countries thousands of individuals Tweeted from during the revolutions. The result is that for the first time we have evidence confirming social media’s critical role in the Arab Spring.
The contributors include Philip Howard, Muzammil Hussain, Will Mari, and Marwa Mazaid at the University of Washington, Deen Freelon at American University, and Aiden Duffy at Amazon Web Services.
HRW: 'Thousands Arrested Without Review in Tripoli'
Πηγή: Human Rights Watch
Sep. 30 2011
(Tripoli) – The National Transitional Council (NTC), the de facto authority in most of Libya, should work to stop militia groups from making arbitrary arrests and abusing detainees in prisons and makeshift detention facilities across western Libya, Human Rights Watch said today.
Human Rights Watch visited 20 detention facilities in Tripoli and interviewed 53 detainees. The detainees reported mistreatment in six facilities, including beatings and the use of electric shock, and some of them showed scars to support the claims. None had been brought before a judge.
The NTC, with the help of its international supporters, urgently needs to set up a justice system able to provide prompt judicial review of all detainees, a task that has not been given sufficiently high priority, Human Rights Watch said.
“After all that Libyans suffered in Muammar Gaddafi’s jails, it’s disheartening that some of the new authorities are subjecting detainees to arbitrary arrest and beatings today,” said Joe Stork, deputy Middle East and North Africa director at Human Rights Watch. “The NTC owes it to the people of Libya to show that they will institute the rule of law from the start.”
Since the fall of the Gaddafi government in late August, 2011, local brigades, militias, and other security groups aligned with the NTC have arrested thousands of people and held them without proper legal review, Human Rights Watch said. Those suspected of the most serious crimes, such as killing and rape, have received some of the worst treatment by arresting forces and prison guards, some of which may amount to torture.
Many of those arrested are dark-skinned Libyans and sub-Saharan Africans accused of having fought for Gaddafi. In some cases, guards at detention facilities have illegally forced sub-Saharan Africans to perform manual labor.
A key problem is the array of security forces operating in Tripoli and western Libya without effective oversight or experience, Human Rights Watch said. Some appear to have performed well, with one apparently issuing arrest warrants, but others have abused detainees and used unnecessary force at the time of arrest.
Mahmoud Jebril, the de facto prime minister and head of the NTC executive committee, told Human Rights Watch on September 23 that he and the NTC believed the detainee situation required urgent attention. “Prisoner abuse of any kind is not acceptable,” he said. “We joined the revolution to end such mistreatment, not to see it continue in any form.”
Jebril’s commitment to end prisoner abuse is encouraging, and he and the NTC should implement the commitment quickly, Human Rights Watch said. Bringing the various neighborhood militias and security brigades under a unified command, and setting clear standards for their conduct, should be a top priority, Human Rights Watch said.
Between August 31 and September 29, Human Rights Watch inspected eight prisons in Tripoli and twelve smaller detention facilities, among them two private homes where local security forces were holding detainees. The sites included the two wings of Jdeida prison, as well as Tajoura prison, Moftuah prison, and several facilities located on the Matiga air base. Detainees previously detained in four other Tripoli facilities described their treatment in those places. Ayn Zara and Abu Salim prisons remain empty following the late-August escape of detainees held there by the Gaddafi government.
Human Rights Watch interviewed 37 Libyans and 16 sub-Saharan Africans. The 53 people included 16 women, 4 children, and 5 people considered “high value” because of their positions in the Gaddafi government. Eight of the interviewees had been previously detained in Tripoli by brigades and militias aligned to the NTC. In all but a few cases, officials gave Human Rights Watch unrestricted access to speak with detainees in private.
The detainees who reported abuse said guards had beaten them, sometimes on a daily basis. Seven prisoners in two facilities, including women, said guards had subjected them to electric shock. Two detainees who had been at one facility reported beatings on the soles of their feet – a torture technique commonly used during Gaddafi’s rule. The names of facilities where mistreatment was found are being withheld to protect detainees from possible reprisals.
The detainees accused of rape and killing appear to have suffered the worst treatment while their interrogators pressed them to confess.
In one of the six facilities, detainees said that the treatment was improving. In another, abusive guards had been arrested and a new group placed in charge, detainees and officials said.
Sub-Saharan Africans in detention said that prison guards forced them against their will to perform manual labor, including carrying heavy materials, cleaning, and renovation jobs around Tripoli or on military bases.
Fewer than half of the 53 interviewed detainees said they had been questioned, and none had been investigated by the police or brought before a judge. None said they had been able to speak with a lawyer.
No NTC official with whom Human Rights Watch spoke was able to provide an estimated number of detainees held in Tripoli, or a list of the city’s many detention facilities. As of September 27, the two wings of Jdeida prison alone held approximately 1,500 detainees.
In recent weeks NTC authorities have attempted to concentrate the detainees arrested by the various security forces in the main prisons, such as Jdeida and Tajoura. They have closed or downsized some makeshift facilities, but military brigades and neighborhood militias still hold captives in some local facilities, Human Rights Watch said. The brigades also transferred some detainees out of Tripoli to facilities in Zintan, Misrata, and Zawiya. Families often do not know how to find their relatives who have been detained.
Most of the prisons and makeshift detention facilities in Tripoli visited by Human Rights Watch appeared to be overcrowded and undersupplied, especially the prison cells holding sub-Saharan Africans.
NTC authorities in Tripoli attribute detention problems to the chaos that followed the takeover of the government and the need to build security after four decades of Gaddafi’s rule. The delays in forming the interim government have compounded the shortcomings, Human Rights Watch said.
The NTC has been running eastern Libya since March, but the criminal justice system is still not functioning well enough even there to give detainees a prompt judicial review, Human Rights Watch said.
Only 50 percent of investigators and prosecutors who worked under the Gaddafi government in Tripoli have returned to work, the NTC says, and the new government has yet to define their priorities. Few of those who have returned to work have begun processing cases.
“The NTC leadership needs to solve this problem together with the military brigades, local authorities, the police, and justice ministry,” Stork said. “Governments and international organizations supporting Libya’s transition should make a functioning criminal justice system a top priority.”
Jebril said the NTC is working to ensure the humane treatment of all prisoners and to establish a judicial process to review their cases. “In the meantime, we will step up our efforts to communicate with all parties about the need to respect the rights of detainees, and to uphold the values that distinguish us from the Gaddafi regime,” he told Human Rights Watch.
Abuses in Detention
Detainees from six detention facilities reported mistreatment at the hands of guards and investigators, including beatings and the use of electric shock.
Because the detainees expressed fear of reprisals, including some who said they might face beatings for talking with a Human Rights Watch researcher, Human Rights Watch is withholding their real names.
A dark-skinned Libyan, Abdulatif, said that guards in one Tripoli detention facility used electric shock to force him to confess to crimes he said he had not committed:
Rebels fearful of Islamist takeover in Libya
Πηγή: The Washington Times
By Ashish Kumar Sen
Sep 29 2011
Qatar’s support for a former jihadist leader who is now the top rebel commander in Tripoli, Libya, is causing unease among Libyan rebels who worry that the revolution that ended Col. Moammar Gadhafi’s four-decade rule is being hijacked by Islamists.
Rebel sources say that Qatar has provided shipments of weapons to Abdel Hakim Belhaj, the rebels’ top military commander in Tripoli. He founded the now-disbanded Libyan Islamic Fighting Group (LIFG), which was listed as a foreign terrorist group by the State Department.
Multiple rebel sources who spoke to The Washington Times on background said containers packed with weapons have been delivered to Mr. Belhaj in recent weeks. Some of these shipments have originated in Qatar.
Earlier this month, rebels from the western city of Zintan intercepted a container that on inspection was found to be packed with weapons. Mr. Belhaj’s supporters earlier had insisted it contained food and milk.
“We are very sorry the Qataris have taken the decision to supportBelhaj’s brigade. This will backfire on our Qatari friends,” said Mohamed Benrasali, a senior member of the rebels’ stabilization team for Libya.
“It is because of [Belhaj‘s] background that everyone is suspicious,” he added.
The Qatari Embassy in Washington did not respond to calls or email requesting comment.
In 2004, Mr. Belhaj was thought to have links to al Qaeda and was arrested by the CIA in Thailand. He was handed over to the Gadhafi regime for interrogation and held in Tripoli’s notorious Abu Salim prison, where he says he was tortured.
Mr. Belhaj denies that his group had ties to al Qaeda.
But Mr. Belhaj’s past is a worry for Mazigh Buzakhar, a Tripoli-based activist who is struggling to win recognition for the minority Amazigh community in Libya’s new constitution.
“Instead of legitimizing Mr. Belhaj, Qatar should deal directly with theNTC [National Transitional Council],” he said.
Not everyone is worried about Qatar’s actions.
Shahrazad Kablan, who helped set up Libyan TV in Qatar, said she doesn’t think Qatari support for Mr. Belhaj will lead to the kingdom putting all its support behind the Islamists.
“Qatar does not share that ideology,” she said.
Meanwhile, Republican Sens. John McCain of Arizona, Lindsey Graham of South Carolina, Mark Kirk of Illinois and Marco Rubio of Florida met Thursday with rebel leaders in Tripoli - the highest-profile U.S. delegation to visit Libya since the overthrow of Col. Gadhafi.
Also Thursday, the rebels moved closer to bringing all of Libya under their control by capturing the airport in Sirte, Col. Gadhafi’s birthplace and his tribal stronghold.
And the international police agency Interpol issued a “red notice” for another of Col. Gadhafi’s sons, Saadi Gadhafi, who is living in Niger, where he fled this month.
Nigerien Prime Minister Brigi Rafini said Mr. Gadhafi would not be extradited.
Col. Gadhafi’s whereabouts are unknown.
Qatar was among the first countries to recognize the rebels' council as the sole legitimate representative of the Libyan people.
Early in the uprising, which began in February, it helped the rebels sell oil, and its air force participated in enforcing a U.N. no-fly zone over Libya.
Qatari flags fly in Libyan cities as a sign of appreciation for its support.
However, this support from an absolute monarchy for a democratic uprising has raised some eyebrows.
“There is still an enormous amount of gratitude toward Qatar,” said Nizar Mhani, a Britain-based doctor who spent seven months in Libya, where he co-founded the Free Generation Movement in support of the rebels. “Questions are cropping up: Why was Qatar so extraordinarily helpful?”
A Western diplomat, who spoke on the condition of anonymity, said it is obvious that Qatar is jockeying for a bigger role in the region.
“They are trying to announce themselves on the world stage,” he said.
Qatar’s actions, in part, have been influenced by Sheik Ali Salabi, a prominent Libyan Islamic scholar who lives in the Qatari capital, Doha. He frequently travels to Libya and has delivered personally some of the Qatari aid to fighters on the front lines.
Mr. Salabi has close ties to Mr. Belhaj. The sheik’s brother, Ismail, is the commander of a powerful rebel brigade in eastern Libya.
The Salabi brothers have been critical of some of the rebel leaders. Ali Salabi described them as “radical secularists” backed by the West. He has been especially critical of acting prime minister Mahmoud Jibril, and has warned that the NTC is leading Libya into a “new era of tyranny” that would be worse than that of the Gadhafi regime.
Writing in London’s Guardian newspaper this week, Mr. Belhaj warned outside powers not to “impose leaders” on Libya.
“What worries us is the attempt of some secular elements to isolate and exclude others. Libya’s Islamists have announced their commitment to democracy; despite this, some reject their participation and call for them to be marginalized,” he wrote.
“It is as though they want to push Islamists towards a nondemocratic option by alienating and marginalizing them. We will not allow this: All Libyans are partners in this revolution and all should be part of building the future of this country,” he added.
The Islamists do not have a big support base in Libya’s predominantly secular society.
Mr. Belhaj’s own popularity has plummeted in Tripoli because of his actions. He moves around the capital with large entourages that residents say are reminiscent of the days of the Gadhafi regime.
“He is not synonymous with the kind of rule that people want to see in Libya,” said Dr. Mhani.
A European diplomat, who spoke on background, said European officials have in private meetings with the rebel leadership sent “very strong messages that there should be no tolerance for extremist groups that might want to use Libya as a place where they could develop a presence.”
“We would like to see an inclusive transition toward democracy in Libya. Most certainly there will be a component of Islamist parties, because they are the reality of Libya’s political scene,” he added.
Delays by the NTC in forming a government also have fueled some rebels’ resentment of the council.
“We are trying to show maximum restraint and unity, but these politicians are testing our patience,” said Mr. Benrasali.
Hedge funds profit from global economic crisis
Markets are down, but London-based Hedge Fund companies are making huge profits.
Πηγή: The Bureau of Investigative Journalism
By Nick Mathiason
Sep 30 2011
When millionaire hedge fund tycoon, Bill Browder realised at the start of the year that recovering world markets were once again heading for the rocks, he was staring down the barrel of an enormous loss.
‘I saw a huge number of negative things piling up,’ the founder and chief executive of Hermitage Capital Management told the Bureau from his West End office. ‘The political situation in the Middle East, the sovereign debt crisis in Europe, the US budget deficit and inflation. I said to myself markets are only [up] because of artificially low interest rates propping this up.’
A billion dollars
The trouble was Browder bet $1bn of clients’ funds on the proposition that emerging markets would rise inexorably. So his investors faced the prospect of seeing their cash lose value.
That was until the Chicago-born trader, whose life and business was turned upside down by deadly clashes with Russian authorities, took emergency action. Swiftly, he changed tack. For every ‘long’ position in a specific company, Hermitage matched it by ‘shorting’ another.
The result of this so-called ‘net flat’ balancing act strategy is that despite the biggest global sell-off since the Lehman Bank collapse three years ago, Hermitage funds are down just a fraction compared to the broader emerging markets index which has crashed by 23%.
Dog days
These are supposed to be dog days for investors. On Wednesday shares in Man Group crashed by almost a quarter after it revealed clients had pulled out $2.6bn (£1.6bn) in funds over the past three months. The news is a hammer-blow to Man who only last year bought rival GLG for $1.6bn.
But hedge fund tycoons, who manage over $2 trillion, are not all licking their wounds.
On the contrary, the amount of cash flowing into their funds is now at pre-crash levels. Traders are leaving investment banks to set up new hedge funds and despite many managers losing cash in recent weeks some are making hay while the rain pours.
Huge profits for hedge funds as the wider economy tanks will refocus attention on financiers who were blamed for amplifying volatility in the bank crisis and whose deployment of ‘black box’ high frequency computer trading techniques has sparked widespread regulatory concern.
Even as £50bn was wiped off UK stocks in just one week last month, it emerged that Brevan Howard, the world’s largest macro fund, made close to $1.5bn during the first three weeks of August and was up 11% on the year.
Handing back profits
The company, run by publicity-shy, Alan Howard and manages $32bn, is to hand back $2bn to investors. It is also in line for a 20% performance bonus for the substantial increase in its portfolio valuation.
Renaissance Institutional Equities Fund, founded by mathematician James Simons, reportedly gained 5.4% while 35 traders at the London arm of giant hedge fund Tudor Capital pocketed the lion share of a £60m payday in the year to March, it emerged earlier this month.
Even as £50bn was wiped off UK stocks in just one week last month, it emerged that Brevan Howard, the world’s largest macro fund, made close to $1.5bn during the first three weeks of August and was up 11% on the year.
There are high profile hedge fund casualties. A fund run byJohn Paulson, the US financier who made billions betting on US house price collapse, reportedly was 39% down this year. Average hedge fund returns in August fell 5.85%. And many did not see the recent crash coming.
But hedge fund investments in technology, private issues and alternatives are all in positive territory. And over the past five years, returns have far eclipsed equities.
This partly explains a recent surge of cash from pension funds concerned that their investments in other asset classes are flatlining. Hedge Fund Research confirmed that $62bn of new cash has poured into hedge fund coffers during the first six months of 2011 – the highest total since the peak of the boom during the first half of 2007.
Flocking to the cash
And aggressive traders, ever eager to follow the money, are leaving investment banks in increasing numbers to set up their own funds. In recent weeks, Todd Edgar, regarded as a star commodity trader at Barclays Capital, left the bank to start his own hedge fund. Edgar joined BarCap two years ago from JP Morgan where he reputedly made the US bank profits of $100m in 2008. He is by no means alone.
‘There has definitely been an increased number of bankers starting new funds,’ said Dr Nick Motson, an expert on hedge funds at Cass Business School. ‘And it is ongoing. A lot of them are coming from banks’ proprietary desks. Most definitely there is a new wave coming through. It makes sense if they are precluded from taking risks (by new regulations).’
With cash to burn, hedge funds are gearing up to spoil any attempts to raid their bulging coffers or wreck their privileged tax status. There are suggestions that hedge fund tycoons in the US will throw their considerable financial muscle behind a Republican presidential candidate. This is seen as a pre-emptive strike against industry speculation that President Obama will attempt to partially plug the yawning $14.3 trillion US deficit by scrapping rules that allow hedge fund partners to treat their wages as capital gains which are taxed at a far lower rate.
In Europe, hedge funds are threatened by EU proposals this week to introduce a micro-tax on financial trades to raise cash for teetering economies. Campaigners fear as hedge fund tycoons are big donors to the Conservatives, they will use their influence on David Cameron and George Osborne to ensure that the issue of higher taxes is kicked into the long grass.
Central Office could yet be receiving more cheques from the Mayfair set.
Is Another Depression Possible?: A Comparison of "The Great Depression" and "The Great Recession"
Πηγή: Global Research
by Devon DB
Sep 30 2011
In 2007, the world became engulfed in the largest economic slump since the Great Depression. The crisis was so damaging it was coined “the Great Recession” and there was much comparison of the recession to the Great Depression of the 1930s in the mainstream media. However, what many failed to do was an in-depth analysis of both the Great Depression and the Great Recession, to compare and contrast to two. Thus, this article will be a comparison of both economic downfalls, ending in an analysis of the current economic situation America finds itself in and asking the question if another Great Depression is possible.
The decade prior to the 1930s, the US was in a time of great economic boom known as “The Roaring Twenties.” Yet while the nation’s income rose about 20% (from $74.3 billion in 1923 to $89 billion in 1929), the majority of this wealth went to the richest as can be seen by the fact that “in 1929 the top 0.1% of Americans had a combined income equal to the bottom 42%” [1] and that the disposable income per capita rose 9% from 1920 to 1929, while the top 1% enjoyed a massive 75% increase in per capita disposable income. This greatly increased wealth disparity and led to a imbalance in the US economy where demand wasn’t equal to supply and thus there was an oversupply of goods as “those [the poor and the middle class] whose needs were not satiated could not afford more, whereas the wealthy were satiated by spending only a small portion of their income,” [2] which caused the US to become reliant on three things to keep the economy afloat: credit sales, luxury spending, and investment by the rich. However, the major flaw of an economy based on credit sales, luxury spending, and investments was that all three of those activities depended upon people’s confidence in the economy. If confidence were to lower, then those activities would come to a halt and with it the US economy.
The massive inequality in wealth was not solely in terms of socioeconomic status, but also extended to corporations as well. During the first World War, the federal government subsidized farms in earnest as they wanted to feed not only Americans, but also Europeans. However, once the war ended, so did subsidies for farms. The government began to support the automobile and radio industries, with help from then-President Calvin Coolidge in the form of pressuring the Federal Reserve to keep easy credit, as to allow for both industries to easily be heavily invested in.
In the 1920s, the profits of the automobile and its connected industries such as lead, nickel, and steel skyrocketed, so much so, that by 1929 “a mere 200 corporations controlled approximately half of all corporate wealth.” [3] The automobile boom also led to the creation of hotels and motels which in turn led “Americans spent more than a $1 billion each year on the construction and maintenance of highways, and at least another $400 million annually for city streets” [4] in the 1920s. In addition to the massive success of the automobile industry, the radio industry also preformed exceptionally well as “Radio stations, electronic stores, and electricity companies all needed the radio to survive, and relied upon the constant growth of the radio market to expand and grow themselves.” [5]
To isolate Abbas, US prods Jordan to host Hamas-Damascus
Khaled Meshaal in Jordan
Πηγή: DEBKAfile
Sep 30 2011
Washington has played a strong card against Mahmoud Abbas' push for UN acceptance of a Palestinian state and his playing hard to get for resumed peace talks. After some arm-twisting, Jordan's King Abdullah agreed to let his main rival, the radical Hamas political leader, Khaled Meshaal, visit Amman. The Hamas leader arrived Wednesday, Sept. 29, for the second time since he and the entire Hamas leadership were expelled from the kingdom 12 years ago. He last visited Jordan in 2009 to attend his father's funeral.
Jordanian Interior Minister Mazen Saket made it clear that the special entry permit covered only a limited stay. Some Jordanian sources explained it was granted on the grounds of his ailing mother's admission to hospital.
However, DEBKAfile's Washington and intelligence sources report that the Hamas leader came to Amman for bigger fish: negotiations in the hope of permission to transfer the organization's political headquarters and staff from Damascus to Amman.
The Jordanian King is flatly opposed to this step – especially now - given the Palestinian terrorist leader's past history with the kingdom. He faces heavy US pressure, backed by Saudi Arabia, to relent. So far, he only agreed very reluctantly to Meshaal paying a short visit.
The Obama administration began pushing hard for the move when in the first half of September, the military rulers of Egypt decided to shut the door against Meshaal and his staff's relocation in Cairo. At first, they were amenable, hoping to use the transfer to get at Syrian President Bashar Assad and weaken Iran's westward drive into the Arab world. In the second half of August, they invited Meshaal to Cairo to discuss the transfer.
But in early September they changed their minds for three reasons:
1. The Muslim Brotherhood in Egypt's earlier flirtation with Iran had gone sour and the generals decided it was not a good time to introduce a pro-Iranian Palestinian entity into Cairo's unstable political scene.
2. Hamas-Gaza had become a major thorn in their sides. Its armed militias and terrorists had poured out of the Gaza Strip to seize parts of northern Sinai and were taking delivery of burgeoning consignments of Libyan arms through Egypt and the peninsula. The last thing Egypt needed, they reckoned, was for Hamas to gain a second organized logistic headquarters in Cairo.
3. Like other Middle East rulers, the Supreme Military Council of Egypt recognizes that Assad is on the point of finally crushing the popular uprising against his rule. They are therefore wary of unnecessarily antagonizing him. Accepting the Hamas political bureau in Cairo would be seen as a vote of no-confidence in the Syrian ruler's chances of survival.
Washington's decision to arrange for the Hamas politburo to move to Amman was motivated most of all by the wish to put Palestinian Authority Chairman Mahmoud Abbas in his place by having Hamas breathe down his neck not just from the Gaza Strip but also from Amman, where he maintains a large residence.
Washington was guided by four further considerations:
- Khaled Meshaal's exit from Damascus would divest Assad of a key regional power lever as well as excluding him from a role on the Palestinian issue;
- His relocation in Amman would, it is hoped, eventually weaken Hamas' ties with Tehran and the Lebanese Hizballah;
- Washington decided to help Hamas to move house in its capacity as a branch of the transnational Muslim Brotherhood headquartered in Egypt, a movement whose interests the Obama administration opted to promote in the Arab Spring. At the same time, by refraining from pushing Assad out, the Obama administration paradoxically aided in the failure of the Syrian uprising and its Muslim Brotherhood spearhead.
- The US administration sought to discipline the Palestinian leader for going through with his application for UN membership in defiance of President Barack Obama's strong objections.
Abbas, his Palestinian Authority and the PLO have always treated Jordan and its capital Amman as their logistical hinterland and sanctuary. Abbas spends at least as much time in his Amman mansion as he does in Ramallah. Placing Hamas' political leader cheek to jowl with him in his second home would pose a potential challenge to Abbas' position as the sole internationally-acceptable spokesman for the Palestinian cause.
If after moving to Jordan, Hamas should one day moderate its extremist agenda, which calls for Israel's annihilation and refuses to relinquish terror, Washington and Riyadh would acquire a second Palestinian option for negotiations outside Ramallah and the PLO establishment – or so it is believed in some US circles.
For more than a decade, the Hashemite king has kept Khaled Meshaal at arm's length and physically distant from his following among the violent elements of Jordan's Muslim Brotherhood leadership. His presence in Amman would strengthen those elements at a time when they are on the offensive.
But Abdullah found it hard to stand up to Saudi pressure which was accompanied by a guarantee that the oil kingdom's clandestine forces would stamp down on any Hamas subversion against the throne. He therefore relented – albeit only so far as letting Meshaal pay a short visit to the kingdom.
US strike kills American al-Qaida cleric in Yemen
Πηγή: AP
By AHMED AL-HAJ
Sep 30 2011
SANAA, Yemen (AP) -- In a significant new blow to al-Qaida, U.S. airstrikes in Yemen on Friday killed Anwar al-Awlaki, an American militant cleric who became a prominent figure in the terror network's most dangerous branch, using his fluent English and Internet savvy to draw recruits for attacks in the United States.
The strike was the biggest U.S. success in hitting al-Qaida's leadership since the May killing of Osama bin Laden in Pakistan. But it raises questions that other strikes did not: Al-Awlaki was an American citizen who has not been charged with any crime. Civil liberties groups have questioned the government's authority to kill an American without trial.
The 40-year-old al-Awlaki was for years an influential mouthpiece for al-Qaida's ideology of holy war, and his English-language sermons urging attacks on the United States were widely circulated among militants in the West.
But U.S. officials say he moved into a direct operational role in organizing such attacks as he hid alongside al-Qaida militants in the rugged mountains of Yemen. Most notably, they believe he was involved in recruiting and preparing a young Nigerian who on Christmas Day 2009 tried to blow up a U.S. airliner heading to Detroit, failing only because he botched the detonation of explosives sewn into his underpants.
Yemen's Defense Ministry said another American militant was killed in the same strike alongside al-Awlaki - Samir Khan, a U.S. citizen of Pakistani heritage who produced "Inspire," an English-language al-Qaida Web magazine that spread the word on ways to carry out attacks inside the United States. U.S. officials said they believed Khan was in the convoy carrying al-Awlaki that was struck but that they were still trying to confirm his death. U.S. and Yemeni officials said two other militants were also killed in the strike but did not immediately identify them.
Washington has called al-Qaida in the Arabian Peninsula, as the branch in Yemen is called, the most direct threat to the United States after it plotted that attack and a foiled attempt to mail explosives to synagogues in Chicago.
In July, U.S. Defense Secretary Leon Panetta said al-Awlaki was a priority target alongside Ayman al-Zawahri, bin Laden's successor as the terror network's leader.
The Yemeni-American had been in the U.S. crosshairs since his killing was approved by President Barack Obama in April 2010 - making him the first American placed on the CIA "kill or capture" list. At least twice, airstrikes were called in on locations in Yemen where al-Awlaki was suspected of being, but he wasn't harmed.
Friday's success was the result of counterterrorism cooperation between Yemen and the U.S. that has dramatically increased in recent weeks - ironically, even as Yemen has plunged deeper into turmoil as protesters try to oust President Ali Abdullah Saleh, U.S. officials said.
Apparently trying to cling to power by holding his American allies closer, Saleh has opened the taps in cooperation against al-Qaida. U.S. officials said the Yemenis have also allowed the U.S. to gather more intelligence on al-Awlaki's movements and to fly more armed drone and aircraft missions over its territory than ever before.
The operation that killed al-Awlaki was run by the U.S. military's elite counterterrorism unit, the Joint Special Operations Command - the same unit that got bin Laden.
A U.S. counterterrorism official said American forces targeted a convoy in which al-Awlaki was traveling with a drone and jet attack and believe he's been killed. The official was not authorized to speak publicly and spoke on condition of anonymity.
The Yemeni government announced that al-Awlaki was "targeted and killed" around 9:55 a.m outside the town of Khashef in mountainous Jawf province, 87 miles (140 kilometers) east of the capital Sanaa. It gave no further details.
Local tribal and security officials said al-Awlaki was traveling in a two-car convoy with two other al-Qaida operatives from Jawf to neighboring Marib province when they were hit by an airstrike. They said the other two operatives were also believed dead. They spoke on condition of anonymity because they were not authorized to talk to the press.
Al-Awlaki, born in New Mexico to Yemeni parents, began as a mosque preacher as he conducted his university studies in the United States, and he was not seen by his congregations as radical. While preaching in San Diego, he came to know two of the men who would eventually become suicide-hijackers in the Sept. 11, 2001 attacks on the World Trade Center and the Pentagon. The FBI questioned al-Awlaki at the time but found no cause to detain him.
In 2004, al-Awlaki returned to Yemen, and in the years that followed, his English-language sermons - distributed on the Internet - increasingly turned to denunciations of the United States and calls for jihad, or holy war. The sermons turned up in the possession of a number of militants in the U.S. and Europe arrested for plotting attacks.
Al-Awlaki exchanged up to 20 emails with U.S. Maj. Nidal Malik Hasan, alleged killer of 13 people in the Nov. 5, 2009, rampage at Fort Hood. Hasan initiated the contacts, drawn by al-Awlaki's Internet sermons, and approached him for religious advice.
Al-Awlaki has said he didn't tell Hasan to carry out the shootings, but he later praised Hasan as a "hero" on his Web site for killing American soldiers who would be heading for Afghanistan or Iraq to fight Muslims.
In New York, the Pakistani-American man who pleaded guilty to the May 2010 Times Square car bombing attempt told interrogators he was "inspired" by al-Awlaki after making contact over the Internet.
After the Fort Hood attack, al-Awlaki moved from Yemen's capital, Sanaa, into the mountains where his Awalik tribe is based and - it appears - grew to build direct ties with al-Qaida in the Arabian Peninsula, if he had not developed them already. The branch is led by a Yemeni militant named Nasser al-Wahishi.
Yemeni officials have said al-Awlaki had contacts with Umar Farouk Abdulmutallab, the accused would-be Christmas plane bomber, who was in Yemen in 2009. They say the believe al-Awlaki met with the 23-year-old Nigerian, along with other al-Qaida leaders, in al-Qaida strongholds in the country in the weeks before the failed bombing.
Al-Awlaki has said Abdulmutallab was his "student" but said he never told him to carry out the airline attack.
The cleric is also believed to have been an important middleman between al-Qaida militants and the multiple tribes that dominate large parts of Yemen, particular in the mountains of Jawf, Marib and Shabwa province where the terror group's fighters are believed to be holed up.
Last month, al-Awlaki was seen attending a funeral of a senior tribal chief in Shabwa, witnesses said, adding that security officials were also among those attending. Other witnesses said al-Awlaki was involved in negotiations with a local tribe in Yemen's Mudiya region, which was preventing al-Qaida fighters from traveling from their strongholds to the southern city of Zinjibar, which was taken over recently by Islamic militants. The witnesses spoke on condition of anonymity for fear of reprisals and their accounts could not be independently confirmed.
Yemen, the Arab world's most impoverished nation, has become a haven for hundreds of al-Qaida militants. The country has also been torn by political turmoil as President Saleh struggles to stay in power in the face of seven months of protests. In recent months, Islamic militants linked to al-Qaida have exploited the chaos to seize control of several cities in Yemen's south, including Zinjibar.
A previous attack against al-Awlaki on May 5, shortly after the May raid that killed Osama bin Laden, was carried out by a combination of U.S. drones and jets.
Top U.S. counterterrorism adviser John Brennan has said cooperation with Yemen has improved since the political unrest there. Brennan said the Yemenis have been more willing to share information about the location of al-Qaida targets, as a way to fight the Yemeni branch challenging them for power.
Yemeni security officials said the U.S. was conducting multiple airstrikes a day in the south since May and that U.S. officials were finally allowed to interrogate al-Qaida suspects, something Saleh had long resisted, and still does so in public. The officials spokes on condition of anonymity to discuss intelligence issues.
US incomes fall for first time in nearly 2 years
Πηγή: AP
By MARTIN CRUTSINGER
Sep 30 2011
WASHINGTON (AP) -- Americans earned less last month, the first decline in nearly two years. With less income, consumers could cut back on spending and weaken an already-fragile economy.
Consumers spent a little more in August despite seeing their incomes drop 0.1 percent, the Commerce Department said Friday. Consumer spending rose just 0.2 percent, after a more robust 0.7 percent gain in July.
Many tapped savings to cover the steeper costs. And most of the increase in spending went to pay higher prices for food and gas. When adjusted for inflation, August consumer spending was flat.
Stocks fell after the report's release. The Dow Jones industrial average fell more than 100 points in the first half-hour of trading.
The data offered "more evidence that households are in quite a bind," said Paul Dales, senior U.S. economist at Capital Economics.
In August, employers added no new jobs and cut hourly earnings for the first time in more than three years.
Income growth has been sluggish for most of the year. After taking inflation into account, after-tax incomes actually fell 0.3 percent in August and 0.2 percent in July. That's the first back-to-back declines in inflation-adjusted incomes since mid-2008, when the country was in the midst of the recession and financial crisis.
Even the increase in spending wasn't necessarily a good sign. Consumers spent 0.3 percent more on nondurable goods, such as food and clothing.
Gasoline prices are now roughly $3.46 per gallon. While that is higher than last year, the price is down nearly 52 cents from this year's peak price of $3.98.
Consumers spent less last month on big purchases, such as cars, appliances and furniture. Car sales fell during the month, but part of that weakness reflected supply problems stemming from the Japan crisis.
"Consumer spending is still rising, which is important for U.S. economic growth. But the gains are pretty mediocre," said Jennifer Lee, senior economist at BMO Capital Markets.
Facing higher prices and earning less money, consumers saved only 4.5 percent last month. The savings rate rose as high as 6.5 percent in late 2008, at the height of the recession and financial crisis.
Prior to the recession, Americans saved just 2 percent. An abundance of jobs and inflated home prices made many resist stowing money away.
The economy grew at an annual rate of just 0.9 percent in the first six months of the year, the slowest growth since the recession officially ended more than two years ago.
Economists expect only slightly better growth in the second half of this year. But that's based on expectations that consumers will spend more.
Some are predicting growth of around 2 percent in the second half of the year. That level of growth would ease recession fears, but it's not enough to lower the unemployment rate, which was 9.2 percent in August.
Consumer confidence stayed weak in September after the economy experienced a number of shocks this summer. Lawmakers fought over raising the nation's borrowing limit, Standard & Poor's downgraded long-term U.S. debt, the stock market fluctuated wildly and Europe's debt crisis intensified.
The Federal Reserve last week agreed to shift $400 billion of its portfolio of Treasury securities to try to drive down long-term interest rates. It was the Fed's latest unconventional move seeking to give the economy a boost.
Euro fund clears key German test as Greece awaits audit
Πηγή: EUBusiness
Sep 30 2011
(BERLIN) - Europe's rescue fund cleared a major hurdle Thursday when German lawmakers voted overwhelmingly to beef it up, boosting markets as attention turned to a key international audit of debt-mired Greece.
Stock markets on both sides of the Atlantic greeted the news with relief as Chancellor Angela Merkel survived a vote that proved a hard-fought test of her political authority as the world looks to her to defuse the debt problem.
But Asian stock markets were mixed in early trade Friday, with analysts saying the German vote had already been priced in and had not assuaged doubts over the eurozone's ability to plot a course out of the crisis.
Tokyo stocks rose 0.25 percent by noon in directionless trade, with the benchmark Nikkei 225 index at the Tokyo Stock Exchange up 21.89 points to 8,723.12, while Hong Kong's Hang Seng Index dipped 1.67 percent to 17710.44.
Australia's main index fell 0.49 percent to 3987.7 and in Korea stocks lost 1.21 percent to reach 1748.01.
Credit Agricole strategist Mitul Kotecha said there was still "a huge degree of scepticism" over the potential for policymakers "to resolve the crisis".
German deputies voted by 523 to 85 to expand the size and scope of the 440-billion-euro ($590 billion) European Financial Stability Facility (EFSF), handing it new powers, for example to buy sovereign bonds.
"This is a clear show of support for the common currency," said Holger Schmieding, from Berenberg Bank.
The expansion also boosts the contribution of Germany, Europe's paymaster, to 211 billion euros, though Finance Minister Wolfgang Schaeuble insisted there would be no more cash flowing from Berlin.
"We have agreed German guarantees of 211 billion euros for the EFSF. More is not necessary," he said.
Merkel's spokesman Steffen Seibert said on microblogging site Twitter: "It is good that the Bundestag voted for an expanded EFSF rescue fund with such a large majority. Europe and half the world were looking to Germany."
German dailies had dubbed Thursday "decision day for the euro" and "a fateful day" for Merkel, amid hopes Berlin would offer solutions to a eurozone crisis that US President Barack Obama has said is "scaring the world."
Despite fevered speculation in the run-up to the vote, Merkel did not have to rely on the opposition to pass the bill, staving off a potential political crisis that some feared could spark new elections in Europe's top economy.
German Foreign Minister Guido Westerwelle said that with the vote, "the signal to our European partners is that you can rely on Germany."
"Today's decision is an important contribution to solving the debt crisis and to stabilising the euro," Westerwelle said.
The European Commission also hailed the result with a spokesman for Economic and Monetary Affairs Commissioner Olli Rehn saying: "We welcome this new approval of the EFSF."
The spokesman, Amadeu Altafaj, added that the rescue fund was still a "work in progress" but stressed Brussels hopes all eurozone states will have ratified the agreement by mid-October.
Cyprus and Estonia also approved the changes to the EFSF on Thursday, leaving just four of the 17 eurozone countries to vote.
The main stumbling block now appeared to be tiny Slovakia, the eurozone's second poorest country, where the junior coalition partner, Freedom and Solidarity, has repeatedly vowed to torpedo the EFSF's passage.
As if to underline the importance of the fund's new powers, Italy issued 7.85 billion euros worth of bonds Thursday with sharply higher interest rates, signalling renewed discontent on the markets.
Former British prime minister Gordon Brown warned of more doom ahead, saying in an opinion piece in the New York Times: "It has been clear for some time that... the euro cannot survive in its present form."
Many banks were "close to insolvency," argued Brown, also a former finance minister, adding that "a far larger rescue fund -- two, perhaps three trillion euros -- is needed to stabilise the eurozone."
In Athens, auditors from the European Union, European Central Bank and International Monetary Fund met with officials as part of their audit to decide whether to disburse eight billion euros ($11 billion) of crucial aid for Greece.
Eurozone finance ministers will likely decide on October 13 "whether the conditions are met for the next tranche to be disbursed," Schaeuble said in the parliamentary debate.
As staff associations occupied nearly a dozen Greek ministry buildings in protest at the crippling austerity measures needed to tackle the country's debt pile, Athens says it has enough cash to pay the bills until the end of October.
As Greece waits for the funds from a first 110-billion-euro bailout approved last year, analysts have already turned their attention to a much-needed second 159-billion-euro Greek rescue package agreed in July.
The German vote sent European stocks higher, but later trimmed their gains, with Frankfurt ending the day up 1.10 percent and Paris 1.07 percent, but London showing a loss of 0.4 percent.
US blue chips rebounded but tech stocks fell at the close Thursday, with the Dow Jones Industrial Average up 143.08 points (1.30 percent) at 11,153.98.
The broader S&P 500 added 9.34 (0.81 percent) to 1,160.40, but the tech-heavy Nasdaq Composite fell 10.82 (0.43 percent) to 2,480.76.
Europe presses ahead with controversial financial tax
Jose Manuel Barroso - State of the Union address - Photo EC
Πηγή: EUbusiness
Sep. 29 2011
(STRASBOURG) - Europe went ahead with landmark proposals to tax the financial sector on Wednesday, ignoring US opposition in a move also sure to provoke a row with London which fears capital flight from the City.
On the drawing-board for more than a year, the idea was given fresh impetus last month when given the nod by Europe's power couple, French President Nicolas Sarkozy and German Chancellor Angela Merkel.
The plan will go before all 27 European Union heads of state and government at an October 17-18 summit, and also be put to a summit of G20 leaders in Cannes on November 3-4.
European Commission president Jose Manuel Barroso said the tax could generate around 55 billion euros a year as he lodged the draft legislation with the European Parliament in Strasbourg.
"The tax would be levied on all transactions on financial instruments between financial institutions when at least one party to the transaction is located in the EU," a commission statement said.
The EU executive stressed that "house mortgages, bank loans, insurance contracts and other normal financial activities carried out by individuals or small businesses fall outside the scope of the proposal."
The aim is to ensure that the financial sector "makes a fair contribution" after EU governments ploughed 4.6 trillion euros into bailouts mainly for banks caught in a US-triggered property credit meltdown in late 2008, only for taxpayers to suffer as public finances had to be cut as a result.
The commission also has another key goal in mind: some of the receipts from the tax, which would not be implemented before 2014, would go directly into the EU's budget, giving Brussels more independently-raised resources than under the present system of contributions from national governments.
Controversy over where the money will go erupted almost immediately with grassroots activists One, the group co-founded by U2's Bono, saying the tax should fund the fight against poverty and efforts to mitigate climate change.
"At least half the revenue of an EU financial transactions tax should be allocated to the fight against extreme poverty and climate change, to help millions of people trapped in misery," said Guillaume Grosso of the group's French arm.
Charity group Oxfam said the commission should "go further," covering "all financial transactions" and fixing "more ambitious rates for derivatives products," blamed in part for exacerbating the global financial crisis of the last three years.
The parliament's socialists and democrats grouping hailed the fact the proposal will target "the most speculative financial products including transactions carried out off-exchange," and bring the date for implementation forward by four years.
But the head of an international network of tax advisers, Taxand, said the plans "will cause severe tension with those countries opposed to the tax."
Frederic Donnedieu de Vabres also maintained that "importantly, the proposals currently do little to stop the tax ultimately being passed on to the clients of financial institutions."
The latest known proposals would slap 0.1 percent on shares and bonds and 0.01 percent on derivatives, although countries wanting higher levels would be free to raise the rate domestically.
While Merkel and Sarkozy offered no details on the tax in August, their support helped send shares into an immediate tailspin with financial sector players warning the measure would push business away from Europe.
Britain, at the heart of the global financial industry, reiterated demands for any such tax to "apply globally," after a Treasury official argued that "otherwise the transaction covered would simply relocate."
The Netherlands are also opposed to it.
"The tax would not be based on where transactions take place but on the parties involved," an EU source has argued.
Decisions on tax matters, the bedrock of national sovereignty, require unanimity under EU rules.
On the drawing-board for more than a year, the idea was given fresh impetus last month when given the nod by Europe's power couple, French President Nicolas Sarkozy and German Chancellor Angela Merkel.
The plan will go before all 27 European Union heads of state and government at an October 17-18 summit, and also be put to a summit of G20 leaders in Cannes on November 3-4.
European Commission president Jose Manuel Barroso said the tax could generate around 55 billion euros a year as he lodged the draft legislation with the European Parliament in Strasbourg.
"The tax would be levied on all transactions on financial instruments between financial institutions when at least one party to the transaction is located in the EU," a commission statement said.
The EU executive stressed that "house mortgages, bank loans, insurance contracts and other normal financial activities carried out by individuals or small businesses fall outside the scope of the proposal."
The aim is to ensure that the financial sector "makes a fair contribution" after EU governments ploughed 4.6 trillion euros into bailouts mainly for banks caught in a US-triggered property credit meltdown in late 2008, only for taxpayers to suffer as public finances had to be cut as a result.
The commission also has another key goal in mind: some of the receipts from the tax, which would not be implemented before 2014, would go directly into the EU's budget, giving Brussels more independently-raised resources than under the present system of contributions from national governments.
Controversy over where the money will go erupted almost immediately with grassroots activists One, the group co-founded by U2's Bono, saying the tax should fund the fight against poverty and efforts to mitigate climate change.
"At least half the revenue of an EU financial transactions tax should be allocated to the fight against extreme poverty and climate change, to help millions of people trapped in misery," said Guillaume Grosso of the group's French arm.
Charity group Oxfam said the commission should "go further," covering "all financial transactions" and fixing "more ambitious rates for derivatives products," blamed in part for exacerbating the global financial crisis of the last three years.
The parliament's socialists and democrats grouping hailed the fact the proposal will target "the most speculative financial products including transactions carried out off-exchange," and bring the date for implementation forward by four years.
But the head of an international network of tax advisers, Taxand, said the plans "will cause severe tension with those countries opposed to the tax."
Frederic Donnedieu de Vabres also maintained that "importantly, the proposals currently do little to stop the tax ultimately being passed on to the clients of financial institutions."
The latest known proposals would slap 0.1 percent on shares and bonds and 0.01 percent on derivatives, although countries wanting higher levels would be free to raise the rate domestically.
While Merkel and Sarkozy offered no details on the tax in August, their support helped send shares into an immediate tailspin with financial sector players warning the measure would push business away from Europe.
Britain, at the heart of the global financial industry, reiterated demands for any such tax to "apply globally," after a Treasury official argued that "otherwise the transaction covered would simply relocate."
The Netherlands are also opposed to it.
"The tax would not be based on where transactions take place but on the parties involved," an EU source has argued.
Decisions on tax matters, the bedrock of national sovereignty, require unanimity under EU rules.
Prisoner Protest Restarts in California
Πηγή: New York Times
By Erica Goode
Sep 29 2011
More than 4,200 inmates at eight prisons have been refusing state-issued meals since Monday, according to the California Department of Corrections and Rehabilitation. The hunger strike, the second this year, is the latest problem to face state prison officials, who are under a Supreme Court order to reduce the state’s prison population by more than 30,000 people.
A memo was distributed to prisoners at the state’s 33 correctional institutions warning that if they took part in the hunger strike, they would be subject to disciplinary action that could include confiscation of canteen items like food they had bought.
Prisoners identified as leaders of the strike would also be removed from the general population and “placed in an administrative segregation unit,” according to the memo.
A hunger strike in July, which involved 6,600 inmates at its peak, ended after the department agreed to consider adjustments in the way inmates are assigned to the state’s three security housing units, where they are held in tightly controlled conditions that minimize human contact.
Scott Kernan, the under secretary of operations for the department, said that after the strike in July, the department “determined there was some validity to what the inmates’ concerns were.” The department is reviewing its procedures, he said.
But on Monday, inmates resumed the strike, saying that the department had not yet fully addressed their demands.
Those demands included modifying the practice of sending prisoners to security housing units for indefinite periods based on the judgment that they were involved in gang activities, and also abolishing the practice of “debriefing,” in which inmates are encouraged to gain release from the unit by renouncing their gang affiliations and providing information about them.
At Pelican Bay State Prison, in a remote northern region of the state, the average length of confinement for the 1,111 inmates in the security housing unit is 6.8 years, according to the department. Most inmates in the unit are confined in windowless cells, 7.6 feet by 11.6 feet, for 22 hours or more a day.
Donald Specter, director of the Prison Law Office in Berkeley, which provides free legal services to prisoners, said that given the standoff between the inmates and the prison officials, “I don’t really see how this can end happily or without tragedy.”
A memo was distributed to prisoners at the state’s 33 correctional institutions warning that if they took part in the hunger strike, they would be subject to disciplinary action that could include confiscation of canteen items like food they had bought.
Prisoners identified as leaders of the strike would also be removed from the general population and “placed in an administrative segregation unit,” according to the memo.
A hunger strike in July, which involved 6,600 inmates at its peak, ended after the department agreed to consider adjustments in the way inmates are assigned to the state’s three security housing units, where they are held in tightly controlled conditions that minimize human contact.
Scott Kernan, the under secretary of operations for the department, said that after the strike in July, the department “determined there was some validity to what the inmates’ concerns were.” The department is reviewing its procedures, he said.
But on Monday, inmates resumed the strike, saying that the department had not yet fully addressed their demands.
Those demands included modifying the practice of sending prisoners to security housing units for indefinite periods based on the judgment that they were involved in gang activities, and also abolishing the practice of “debriefing,” in which inmates are encouraged to gain release from the unit by renouncing their gang affiliations and providing information about them.
At Pelican Bay State Prison, in a remote northern region of the state, the average length of confinement for the 1,111 inmates in the security housing unit is 6.8 years, according to the department. Most inmates in the unit are confined in windowless cells, 7.6 feet by 11.6 feet, for 22 hours or more a day.
Donald Specter, director of the Prison Law Office in Berkeley, which provides free legal services to prisoners, said that given the standoff between the inmates and the prison officials, “I don’t really see how this can end happily or without tragedy.”
U.N. Mission in Libya. An attempt to legitimize NATO agression
Πηγή: CounterPsyOps
By thomasmantell
Sep 29 2011
On September 16, the UN Security Council passed Resolution 2009 establishing a “peacekeeping” Support Mission in Libya to be headed by British citizen Ian Martin. The Mission is tasked with helping Libya rebuild its national security, assisting the country in drafting a new constitution, expanding the zone under the control of the civilian administration, advocating human rights, supporting justice, rebuilding the Libyan economy, and coordinating the support for future interactions with other subjects. At the moment, it makes sense to get a glimpse of what all of the above may mean in practice.
The very formulation of the fist objective indicates that the rebels who seized power in Libya are unable to exercise control over the country and permanently depend on foreign military forces being deployed in it. As in most previous cases, people from countries like Bangladesh and Pakistan – the 70% majority among the UN peacekeeping missions’ personnel – will be offered to sacrifice their lives to the European cause. In the meantime, the NATO part of the job is going to be to stay in charge. Whereas up to date foreign troops have been dispatched to Libya secretly and illegitimately, from now on they will operate across the country openly and ostensibly in accord with the international law.
The assistance in writing a constitution and organizing elections is a curious point, likely meaning that the text of the constitution, written outside of Libya, is already in place. The storyline is not exactly new, but the openness in the case of Libya and the incorporation of the plan into a UN mission’s agenda are a surprise. As for the elections, those are meant to be the key step towards legitimizing Libya’s National Transitional Council, but holding them is clearly impossible unless the coalition forces are present and keep a lid on everything. In this regard, no questions arise as to what the Mission is up to.
Expanding the civilian administration’s zone of control is the most sinister part of the agenda. Considering that the civilian administration is supposed to be the National Transitional Council and nothing else, the UN Mission is evidently charged with breaking the nation’s resistance to the Council’s mutiny and the international aggression. Supporting the unnamed subjects whose names should not be hard to guess is also a noteworthy line.
References to the international law in connection with the revamped format of the military campaign against Libya should not go unnoticed. Churning out peacekeeping missions became a UN routine to such an extent that the theme of their legitimacy almost automatically receded from public discourse. The aggression against Libya, however, is too outrageous to let it fly below the radars. The legal grounds for establishing the new mission seem to be listed in the opening part of the Resolution, but the justifications for the UN intervention and the legal aspects of the decision to have the Mission set up are deliberately given in the form of an incoherent mix, with references to previous UN Security Council Resolutions and condemnations of violence against civilians thrown in. None of the Resolutions mentioned actually authorizes the establishment of the new Mission. The only somewhat convincing argument could be the statement that the Mission comes into being under Article 41 of Chapter VII of the UN Charter, but upon scrutiny the article does not authorize the UN to put together any such missions. What Article 41 of Chapter VII of the UN Charter says is: “The Security Council may decide what measures not involving the use of armed force are to be employed to give effect to its decisions, and it may call upon the Members of the United Nations to apply such measures. These may include complete or partial interruption of economic relations and of rail, sea, air, postal, telegraphic, radio, and other means of communication, and the severance of diplomatic relations”. Not a word about missions, obviously. The reference to the Chapter is also fraudulent – its other articles similarly say nothing about the missions. On top of everything, what we witness here is a violation of the general principle excluding rulings based on undefined norms.
Interestingly, the UN did not invoke Article 42 of the Charter which appears to enable the Security Council “to take action by air, sea, or land forces as may be necessary to maintain or restore international peace and security”. The explanation behind the absence of a reference to Article 42 is that it mentions demonstrations and blockades, but of course no overland invasions in the form of “missions”.
Resolution 2009 promises a series of measures apart from the establishment of a UN Mission in Libya. It lifts the embargo on weapons supplies to the country (13(a)), the condition that the arms are “intended solely for security and disarmament assistance” meaning little in the Libyan context. In contrast, it says volumes that the change applies to “arms and related materiel of all types”. The Resolution also ended the assets freeze formerly imposed on the Libyan National Oil Corporation (LNOC) and Zueitina, but left the no-fly regime over Libya in effect. Some of the Security Council members – Russia and South Africa, in particular – wanted the Resolution to put an end to the no-fly zone, but met with no success. As a justification of Moscow’s subscribing to the Resolution, Russian UN envoy V. Churkin said it was good at least that it reflected the UN readiness to look into the abolition of the no-fly zone in the nearest future. It is unclear which part of the text warranted such optimism. The Resolution “underlines the readiness, as appropriate and when circumstances permit” to lift the no-fly zone, but says nothing about the nearest future, plus the evasive formulations leave no doubts concerning the real plans of their authors.
Russia and South Africa also failed to insert into the Resolution a passage on urgently stopping the genocide of black Africans in Libya. What the two countries came up with officially sounds rather uncertain: they merely expressed concern over the situation African migrants are facing in Libya. What they are actually facing, though, is genocide, considering that criminals kill their victims – not only African migrants but also black Libyans, as Russia’s envoy stressed on September 16 – based entirely on race. The truth is that at the moment, in strict legal terms, Libya is the scene of racially based genocide. That, by the way, shows with utmost clarity who the people in Libya’s new, internationally recognized administration really are.
Essentially, the new Mission is issued a mandate for converting the ongoing NATO military campaign aimed at occupying Libya into a UN-flagged operation. Even a brief legal review proves that bringing in a UN flag is no way of legitimizing an overland offensive in Libya. Rather, what the UN is doing at the moment is as illegitimate as the NATO campaign.
A Questionable Form of Freedom for North Africa
Πηγή: Spiegel
By Clemens Höges and Thilo Thielke
Sep 28 2011
Ammunition crates, now empty in the wake of recent heavy fighting, are stacked outside the military barracks at the Tripoli airport. One of the victors, wearing military fatigues, is sitting in a luxurious leather armchair inside the building. He presses his combat boots into the thick carpet, his facial features as rigid as if they had been sculpted. The man speaks intently. He wants to make sure that each of his sentences is recorded on video, and that nothing is misunderstood.
For years, American and British intelligence agencies hunted Abdel Hakim Belhaj, the commander of the Libyan rebels' Tripoli brigade, believing him to be a terrorist and ally of then al-Qaida leader Osama bin Laden. They also reportedly had him abducted, which led to his being tortured with syringes and ice-cold water. Now though, the West and many in Libya are paying close attention, and are listening to his every word.
"In reality, our group had nothing to do with al-Qaida at the time," says Belhaj, a veteran of the war in Afghanistan and the former head of the Libyan Islamic Fighting Group (LIFG), which, persecuted by the regime of former Libyan leader Moammar Gadhafi, took refuge in Afghanistan for years. Belhaj, the battle-hardened Islamist, is now the commander of all rebel troops in the Libyan capital.
His men drive around in their pickups, outfitted with automatic weapons while the civilian heads of the rebellion seek to map out a path for their country's future. Belhaj says that the power lies "in the hands of the Libyan people," and that Libyans can now decide democratically how they wish to live their lives. "We want a secular country," he adds. But many Libyans don't believe a word the Islamist is saying.
Deep Differences
There is, after all, more at stake today than merely the question of who is currently in power. It is about shaping Libya's future. The Arab Spring uprisings in North Africa are over, and in the wake of the change of regimes in Tunisia and Egypt, a coalition of Islamists and secular insurgents has emerged victorious in Libya. But now that the war is almost over, the deep differences between the two groups are becoming more apparent.
As in Tunisia and Egypt, it will soon become apparent how democratic the new Libya can be. Will it develop along the lines of the Turkish model, for which Turkish Prime Minister Recep Tayyip Erdogan recently campaigned on a celebrated trip through the Arab world? Or, on the other end of the spectrum, will it model itself after the Iranian theocracy?
The old dictators were convenient for the West, because they kept the Islamists under control. But now that the people have liberated themselves, their new freedoms apply to everyone, including the Islamists and jihadists who want to see Sharia law introduced in their respective countries. They are demanding their share of power, which is hardly likely to be small.
The Islamists' brigades fought well in Libya. Indeed, even decades before the revolutions in North Africa, they were the best-organized opposition in the three countries. Their leaders were locked up, tortured and killed. The Islamists paid a heavy price, which has made their supporters tough. They also have greater financial resources than other opposition groups, partly because of support from Gulf sheikhs like the leader of Qatar.
A constitutional convention is to be elected in Tunisia in four weeks, and polls show that the religious Nahda Party could capture 20 to 30 percent of the vote. This would likely give the Islamists more power than any secular party.
Sizeable Potential
This comes as no surprise, since the Islamists have the largest election campaign war chest, they fund scholarships and social projects, they are omnipresent and preach piety. Women are already complaining about being attacked in broad daylight. When a film critical of religion was shown in Tunis, Islamists stormed out of the theater and physically assaulted the owners.
Observers in Egypt believe that the Islamists there -- the Muslim Brotherhood and the Salafists -- hold a similar potential among voters. The Muslim Brotherhood, now calling itself the Freedom and Justice Party, already wants to establish strict rules for foreign women wearing bikinis on Egyptian beaches. Members of the Salafist sect have established a number of different parties.
When the two groups organized a joint rally on Tahrir Square in Cairo, tens of thousands showed up to demonstrate for an Islamic state. Some are blaming the Salafists for a recent rise in arson attacks on Coptic Christian churches in Egypt.
The situation in Libya is much more chaotic than in the two neighboring countries, partly because the rebels are still fighting the last remaining Gadhafi loyalists. Nevertheless, the National Transitional Council, headed by Mustafa Abdul Jalil, and the so-called Executive Committee, under the chairmanship of Mahmoud Jibril, have presented roadmap to democracy which calls for the election of a 200-member national congress in about eight months. Within a year, the congress would draw up a constitution, organize a constitutional referendum and eventually hold free elections.
Military leader Belhaj already feels powerful enough to counter Jibril, who serves as the de facto prime minister. Belhaj, in fact, is trying to oust Jibril from his position.
Charges of Corruption
But the two most influential Libyan Islamists are probably the Salabi brothers. Ismail Salabi commands one of the toughest rebel brigades in Benghazi. His brother Ali, considered one of the country's religious leaders, travels back and forth between Libya and Qatar, the Arab nation on the Persian Gulf that supplied the rebels with weapons and trained its fighters.
The Salabis have already tried several times to discredit members of the National Transitional Council with charges of corruption. Ali Salabi claims the council is filled with "radical secularists" who are trying to sideline the religious groups before elections, and that Jibril wants to usher in a "new era of tyranny and dictatorship."
The Islamists now plan to establish a religious party. If they do not do well in the election, however, says Ali Salabi, they will still respect the will of the people. Salabi insists that he believes in democracy.
But many distrust radicals like the Salabis, especially since the murder of Abdul Fattah Younis. Gadhafi's former interior minister, Younis joined the rebels days after the rebellion began, and, as their commander-in-chief, developed their army. His was one of three bodies were found near Benghazi on July 28. To this day, it remains unclear who shot Younis and his two companions and then burned the bodies, although suspicions point to the Islamists.
Fathi Bin Issa, editor-in-chief of the new Tripoli newspaper Arus al-Bahr, is sitting in his long, narrow office, a room bathed in cold fluorescent light. The red, black and green flag of the new Libya hangs next to his desk. Bin Issa was the spokesman of the rebels shortly after they captured the capital, and his editors now write regular features about the Islamists. He says that he received several death threats only last week, with callers threatening to blow up his office.
Part 2: Good Connections and an Agenda
"There are people here who are trying to build a Libyan Hezbollah," says Bin Issa. "There is a great risk that they will assume power." In some neighborhoods, says the journalist, religious edicts, or fatwas, have already been issued banning women from going out in public alone. He also says that some beauty salons have been shut down, and that members of a self-proclaimed religious police have started appearing in the streets. "These people have good connections, and they have an agenda. That's what makes them so dangerous." In Bin Issa's opinion, everything now depends on how civilian society reacts to the changes. "If we are unable to repel these people, we could see conditions like those in Iran or under the Taliban," says Bin Issa.
The supporter of the revolution believes that his fellow Libyans are not in favor of radical Islam. "Here in Libya, women work as pilots and judges, and they have been instrumental in bringing about change. Our Islam is moderate."
Colonel Ali Ahmed Barathi, 53, is the new chief of the military police in Tripoli. His headquarters once housed the notorious 32nd Brigade, a group that practiced torture and was headed by Gadhafi's son Khamis. The barracks is on the outskirts of Tripoli, where Colonel Barathi is sitting in his office at an enormous desk. He is wearing the obligatory sunglasses and has the rough hands of a professional soldier, and yet Barathi is soft-spoken.
The officer is from Benghazi, where he joined the rebels immediately. "I stood in front of my unit and said that I intended to switch sides. It was left up to each soldier to decide whether to join us. The entire unit defected."
Skirmishes with Islamists
Barathi isn't worried about the Islamists' activities. "Libyans don't want to be ruled by these people. Even Belhaj has recognized this and has been reserved in his comments."
But then he talks about skirmishes with Islamists and says that his men broke apart an entire unit of Islamists at the beginning of the rebellion. "The Islamists were isolated by the tribes, which wanted no part of them. After we had given them the ultimatum to either fight by our sides or lay down their weapons, many turned over their weapons, while others defected."
The dispute between Islamists and secular Libyans could even have a positive outcome -- true pluralism -- hopes Aref Nayed, the coordinator of the so-called stability team of the rebel government. A wealthy IT entrepreneur, Islamic scholar and philosopher, Nayed is often found in the lobby of the Hotel Corinthia along the Tripoli shoreline, along with many of the country's political leaders.
An elegant man with a neatly trimmed beard, Nayed studied in Canada and the United States, and has worked in Italy. He is adept at maneuvering between opposing fronts.
'Keeping Society Together'
After Pope Benedict XVI incited religious Muslims against the Catholic Church with an awkward speech in 2006, Nayed was one of 138 Muslim scholars to sign a letter initiating reconciliation talks. When Nayed joined the National Transitional Council, the Vatican announced that it was pleased to see that an "old friend" had become a key figure in Libya.
Nayed dreams of a compromise between secular and Islamist Libya, an arrangement that could become a model for the Arab world, one in which Islamists would be recognized as a political force, even while women occupied cabinet posts. None of this, says Nayed, would be contradictory to the tenets of Islam. Council head Abdul Jalil, a very devout Muslim, also supports a compromise. Abdul Jalil envisions a moderate Islamic democracy with a legal system based on Sharia. Besides, says Nayed, it is so much the political leaders but Libya's tribes "that are keeping society together."
While he enthusiastically quotes ancient philosophers, the weapon in his waistband slips out from under his expensive jacket. His narrow belt isn't strong enough to hold the heavy 9-mm piston. "I have no idea how to use it," Nayed mutters. He says that his bodyguards insisted that he carry the gun, so that he would not be unprotected when going out in public.
A large photo of murdered General Younis hands on Martyr's Square -- known as Green Square until the rebels arrived -- in downtown Tripoli. The rebel general knew how to use his weapon, but it didn't do him any good.
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