News & Current Affairs

July 19, 2009

Afghan helicopter crash kills 16

Afghan helicopter crash kills 16

Russian-built Mi-8. File photo

Russian media say the aircraft was an Mi-8 similar to this

A civilian helicopter has crashed in southern Afghanistan, killing at least 16 civilians and injuring five, Nato officials have confirmed.

The helicopter crashed at Kandahar airfield apparently as it was trying to take off, though Nato has ruled out the involvement of insurgents.

Reports from Moscow say the helicopter was a Russian-built Mi-8.

The crash is the second in a week. Six passengers died when a helicopter came down in Helmand province on Tuesday.

‘Not shot down’

Russia’s Interfax agency quoted a spokesman for Russia’s Federal Air Transportation Agency (Fata) as saying the aircraft was a Russian-built Mi-8 transport helicopter.

Map

Fata said it was owned by the Russian air company Vertical-T.

The nationalities of the dead are not yet known.

A statement from Nato’s International Security Assistance Force said: “A civilian contracted helicopter crashed during take-off from Kandahar airfield.

“Emergency personnel are on the scene. There was no indication of the cause of the accident but insurgent action has been ruled out.”

Kandahar airfield is Nato’s largest air base in southern Afghanistan but the BBC’s Martin Patience in Kabul says a lot of civilian aircraft fly in and out so there is no surprise this was a civilian crash.

A Nato spokeswoman, Lt Cmdr Sam Truelove, told the AFP news agency it had been confirmed that all the dead were civilians and no military personnel were involved.

RECENT HELICOPTER CRASHES
14 Jul 2008: Six Ukrainian civilians and Afghan girl die in crash in Helmand. Suspected enemy fire
6 Jul 2008: One UK and two Canadian soldiers die in crash in Zabul province. Enemy fire not suspected
15 Jan 2008: Afghan general and 12 other soldiers die in crash in Herat province. Bad weather blamed
30 May 2007: Seven killed as Nato Chinook crashes in Helmand. Cause unclear

The condition of the injured was not known, she said.

Vertical-T was founded in 1992 and started to work abroad in 1998 in Italy. It has worked in countries including Germany, East Timor, Cyprus, Yemen and Greece, according to the company’s website.

The company’s helicopters are currently carrying out operations in the interests of the UN in Afghanistan and a number of other countries including Congo, Sudan and Pakistan.

The dead in Tuesday’s crash in Helmand were all civilians.

That helicopter crashed near the Sangin military base, with local people saying it had been shot down by insurgents.

Six Ukrainian crew members of the Mi-26 helicopter died, along with an Afghan girl on the ground.

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July 16, 2009

New element named ‘copernicium’

Filed under: Latest — Tags: , , , , , , , , , , — expressyoureself @ 5:19 pm

New element named ‘copernicium’

Periodic Table (Science Photo Library)

The Periodic Table will be one element longer

Discovered 13 years ago, and officially added to the periodic table just weeks ago, element 112 finally has a name.

It will be called “copernicium”, with the symbol Cp, in honour of the astronomer Nicolaus Copernicus.

Copernicus deduced that the planets revolved around the Sun, and finally refuted the belief that the Earth was the centre of the Universe.

The team of scientists who discovered the element chose the name to honour the man who “changed our world view”.

The International Union of Pure and Applied Chemistry (IUPAC) will officially endorse the new element’s name in six month’s time in order to give the scientific community “time to discuss the suggestion”.

Scientists from the Centre for Heavy Ion Research in Germany, led by Professor Sigurd Hofmann, discovered copernicium in fusion experiments in 1996.

“After IUPAC officially recognised our discovery, we agreed on proposing the name (because) we would like to honour an outstanding scientist,” said Professor Hofmann.

Copernicus was born 1473 in Torun, Poland. His finding that the planets circle the sun underpins much of modern science. It was pivotal for the discovery of gravity, and led to the conclusion that the stars are incredibly far away and that the Universe is inconceivably large.

Under IUPAC rules, the team were not allowed to name the element after a living person. But when asked if, rules aside, he would have liked to have “hofmanium” added to the periodic table, Professor Hofmann told News: “No, I think copernicium sounds much better.”

July 9, 2009

Ban criticises G8 climate efforts

Ban criticises G8 climate efforts

(L-R) Manmohan Singh; Luiz Inacio Lula da Silva; Felipe Calderon; Jacob Zuma; Dai Bingguo

The summit has opened up to take in the so-called G5 nations

UN Secretary General Ban Ki-moon has criticised leaders of the G8 industrial nations for failing to make deeper commitments to combat climate change.

On Wednesday, the leaders, meeting in Italy, agreed to cut emissions by 80% by 2050, but Mr Ban said big cuts were needed sooner rather than later.

The leaders are set to meet their counterparts from emerging economies to discuss a new deal on global warming.

US President Barack Obama will chair the session, in the city of L’Aquila.

The second day of the summit has begun, opening up its discussions to take in the so-called G5 nations – Brazil, China, India, Mexico and South Africa. Egypt is a special invitee.

The G8 leaders said on Wednesday they had agreed to try to limit global warming to just 2C (3.6F) above pre-industrial levels.

That is the level above which, the United Nations says, the Earth’s climate system would become dangerously unstable.

The G8 leaders also said rich nations should cut emissions by 80% by 2050 while the world overall should reduce them 50% by 2050.

But correspondents say emerging nations appear reluctant to sign up and tough negotiations lie ahead.

‘Moral imperative’

Mr Ban said Wednesday’s agreement was welcome, but the leaders needed to establish a strong and ambitious mid-term target for emissions cuts by 2020.

“This is politically and morally imperative and a historic responsibility for the leaders… for the future of humanity, even for the future of Planet Earth,” he told the news.

Mr Ban said the leaders also had to come up with financial incentives for poorer countries to reduce pollution and aid to help them mitigate the effects of climate change.

President Obama will chair the Major Economies Forum meeting on Thursday afternoon.

The countries represented there account for some 80% of the emissions of gases that are blamed for global warming.

‘Still time’

Our diplomatic correspondent says, in L’Aquila, says the talks with India and China will be difficult.

China’s president has headed home to deal with the ethnic violence in Xinjiang, so there are now questions whether his delegation will be more cautious.

G8 KEY ISSUES/TIMETABLE
THURSDAY: Climate Change
Brazil, China, India, Mexico, South Africa, Egypt join talks
1230 GMT – Junior G8
1300 GMT – Major Economies Forum meeting
FRIDAY: Development
0630 GMT – crisis’ impact on Africa with African leaders attending
0830 GMT – food security
1100 GMT – final news conference
G8 members: Britain, Canada, France, Germany, Italy, Japan, Russia, US

Our correspondent adds that India is already complaining that the G8’s long-term targets for 2050 are too long-term and that G8 countries are ducking interim targets for 2020 which would make their 40-year ambitions more credible.

But in a meeting with Brazilian President Luis Inacio Lula da Silva, Mr Obama said there was still time to close the gap between developed and developing nations before UN talks on a new climate change treaty in Copenhagen in December.

The summit host, Italian Prime Minister Silvio Berlusconi, has said a deal should be all-inclusive.

“It would not be productive if European countries, Japan, the United States and Canada accepted cuts that are economically damaging while more than five billion people in other countries carried on as before,” he said.

The G8 summit began in L’Aquila on Wednesday, with the first day largely taken up with discussion of the fragile state of the global economy.

The leaders also issued a statement reaffirming that they were “deeply concerned” by Iran’s nuclear programme and condemning North Korea’s recent nuclear test and missile launches.

African leaders will join the summit on Friday to push for a new initiative to fund farming in the developing world and tackle global hunger.

Graph shows rising global temperatures

July 1, 2009

Iran ‘disqualifies’ EU from talks

Filed under: Latest, Politics News — Tags: , , , , , , , , , , , , — expressyoureself @ 6:09 pm

Iran ‘disqualifies’ EU from talks

13 June

Britain has denied allegations of involvement in the Iranian riots

The EU is no longer qualified to take part in talks on Iran’s nuclear programme, Iran’s military chief says.

Maj Gen Hassan Firouzabadi, Iran’s chief of staff, accused the EU of “interference” in riots which followed June’s disputed presidential elections.

The EU has for the past few years been involved in talks to try to persuade Iran to abandon its nuclear ambitions.

EU states, meanwhile, are considering withdrawing their ambassadors from Iran in a growing diplomatic row.

External pressure

Britain has proposed the step, after Iran detained nine of its embassy staff in Tehran last week. Eight have since been released.

The diplomatic correspondent says the diplomatic signalling seems to have had an effect, and EU governments will now be looking for the remaining detained staff member to be released.

He adds that the problem more generally is that any external pressure tends to be used by the Iranian government to bolster its own narrative of outside interference.

In the wake of mass street protests against President Mahmoud Ahmadinejad’s relection, Iran’s Basij militia has called for the defeated opposition candidate Mir Hossein Mousavi to be prosecuted.

‘Nine offences’

The semi-official Fars news agency said the militia – a volunteer force of Islamic government loyalists – had accused Mr Mousavi of nine offences, including propaganda against the state, and complicity in disrupting national security.

It is our historic responsibility to continue our complaint and make efforts not to give up the rights of the people
Mir Hossein Mousavi
Iranian presidential candidate

In a letter to the chief prosecutor, the militia said Mr Mousavi had been involved in the street protests, in which about 17 protesters and a number of militia members were killed.

The Iranian presidential elections, held on 12 June, returned President Ahmadinejad to power for a second term in office.

But the opposition disputed the result, saying the vote had been rigged.

Both Mr Mousavi, and another defeated opposition candidate Mehdi Karoubi, have issued statements on their websites describing any government led by President Ahmadinejad as “illegitimate”.

Mr Mousavi wrote: “It is our historic responsibility to continue our complaint, and make efforts not to give up the rights of the people.”

And he called for the release of the “children of the revolution” – a reference to the hundreds of reformist figures detained during the unrest.

‘Hostility’

In his statement, reported by Fars, army chief of staff Gen Firouzabadi accused some EU members of supporting the riots, and demonstrating their hostility to the Iranian people.

The EU has yet to comment, but earlier urged Iran to avoid conflict with the international community.

Previously, Iran had aimed its allegations at Britain in particular and at the weekend detained the local employees of its embassy. Five were released on Monday, and a further three on Wednesday.

Iran says it is enriching uranium for power plants, but some Western countries suspect it plans to build nuclear weapons.

Three EU countries – Britain, France and Germany – have led negotiations over Iran’s nuclear programme, along with the United States, Russia and China.

‘Non-negotiable’

At their last talks, they offered Iran a package of incentives if it would stop its nuclear activities.

But Iran insists that its right to enrich uranium is non-negotiable.

In a separate development, officials in Tehran said President Ahmadinejad had cancelled his trip to an African Union summit in Libya.

Mr Ahmadinejad’s office did not give any reason for the decision.

March 29, 2009

Biden appeals to G20 protesters

Biden appeals to G20 protesters

Prime Minister Gordon Brown meets US Vice-President Joe Biden (R) in Chile on Saturday 28 March 2009

Joe Biden (right) asked protesters to give G20 leaders a fair hearing

US Vice-President Joe Biden has called for G20 protesters to give governments a chance to tackle the economic crisis.

At a G20 warm-up meeting in Chile, Mr Biden said heads of state would agree proposals to remedy the crisis at next week’s meeting in London.

As they spoke, tens of thousands of protesters marched in the UK capital and in Germany, France and Italy.

US billionaire George Soros told the news the G20 meeting was “make or break” for the world economy.

“Unless they do something for developing world there will be serious collapse in that part of the world,” Mr Soros said.

Massive security operation

At a news conference in Vina del Mar, Mr Biden said he hoped the protesters would give the politicians a chance.

“Hopefully we can make it clear to them that we’re going to walk away from this G20 meeting with some concrete proposals,” he said.

British Prime Minister Gordon Brown said he understood why people were demonstrating in the UK.

“We will respond to [the protest] at the G20 with measures that will help create jobs, stimulate business and get the economy moving,” he said.

But Brazil’s President Luiz Inacio Lula da Silva told the Chile meeting that everyone was suffering from the recklessness of those who had turned the world economy into “a gigantic casino”.

“We are rejecting blind faith in the markets,” he said.

In London on Saturday, demonstrators demanding action on poverty, jobs and climate change called on G20 leaders to pursue a new kind of global justice.

Police estimated 35,000 marchers took part in the event.

A series of rallies are planned for Wednesday and Thursday by a variety of coalitions and groups campaigning on a range of issues from poverty, inequality and jobs, to war, climate change and capitalism.

There have been reports that banks and other financial institutions could be targeted in violent protests.

British officials have put a huge security operation in place.

‘We won’t pay’

Before the London summit, Mr Brown has been visiting a number of countries trying to rally support for his economic plans.

In Chile on Friday he said people should not be “cynical” about what could be achieved at the summit, saying he was optimistic about the likely outcome.

But in an interview, German Chancellor Angela Merkel dampened expectations of a significant breakthrough.

She said one meeting would not be enough to solve the economic crisis and finish building a new structure for global markets.

In Berlin, thousands of protesters took to the streets on Saturday with a message to the G20 leaders: “We won’t pay for your crisis.”

Another march took place in the city of Frankfurt. The demonstrations attracted as many as 20,000 people.

In the Italian capital, Rome, several thousand protesters took to the streets.

In Paris, around 400 demonstrators dumped sand outside the stock exchange to mock supposed island tax havens.

December 1, 2008

Mumbai official offers to resign

Mumbai official offers to resign

A man reads a newspaper outside the Chandanwadi Crematorium in Mumbai on Sunday, November 30

Mumbai has been shaken by the attacks

The deputy chief minister of the Indian state of Maharashtra has offered to resign after criticism for failing to deal with the Mumbai attacks.

RR Patil said his decision was guided by his “conscience”.

Armed with guns and bombs, attackers targeted multiple locations on Wednesday, killing at least 172 people.

Meanwhile, on Monday Mumbai limped back to normality with markets, schools and colleges open and heavy traffic on the city’s streets.

On Sunday, Indian Prime Minister Manmohan Singh opened cross-party talks on setting up a federal agency of investigation after the attacks.

Home Minister Shivraj Patil resigned, saying he took “moral responsibility”.

Mr Patil’s resignation was accepted by the prime minister but an offer to resign from the national security adviser, MK Narayanan, was turned down.

Questions have been asked about India’s failure to pre-empt the attacks, and the time taken to eliminate the gunmen.

Two of Mumbai’s best five-star hotels – Taj Mahal Palace and Oberoi-Trident – and a busy railway station were among the high-profile targets which were hit.

The violence which began on Wednesday night finally ended on Saturday morning.

I looked back to see the waiter who was serving me getting hit by a bullet
Shivaji Mukherjee
Mumbai attack survivor

The attacks have increased tensions with Pakistan after allegations that the gunmen had Pakistani links.

Islamabad denies any involvement, but India’s Deputy Home Minister Shakeel Ahmad told the news it was “very clearly established” that all the attackers had been from Pakistan.

Indian troops killed the last of the gunmen at the Taj Mahal Palace hotel on Saturday.

‘Minor incidents’

“I have gone by my conscience and put in my papers,” Maharashtra Deputy Chief Minister RR Patil was quoted by news agency Press Trust of India as saying.

Public anger has been building up against Mr Patil ever since media reports that he made light of the terror attack by saying that such “minor incidents do happen in big cities”.

The minister also told a press conference that “the terrorists had ammunition to kill 5,000 people. But the brave police, security forces crushed their designs and reduced the damage to a much lesser degree”.

The claim has not been confirmed by the security forces.

Meanwhile, on Monday morning normal peak-hour traffic has been leading to jams in many places across the city.

Hotels across the city have tightened security with guests being frisked before being allowed entry.

Most hotels are not letting any vehicles enter as a precautionary measure.

Protests

On Sunday, Prime Minister Singh held a cross-party meeting in Delhi.

Mr Singh was quoted by Reuters news agency as saying he planned to increase the size and strength of the country’s anti-terrorist forces.

As few as 10 militants may have been involved in Wednesday’s assault which saw attacks in multiple locations including a hospital and a Jewish centre.

While the vast majority of victims were Indians, at least 22 foreigners are known to have died, including victims from Israel, the US, Germany, Japan, Canada, Australia, Italy, Singapore, Thailand and France. One Briton, Andreas Liveras, was also killed.

When coastguards boarded the vessel, they found… a satellite phone and GPS tracker that possibly belonged to the trawler’s crew.

Hundreds of people took to the streets of Mumbai on Sunday to protest at the perceived government failures.

Protesters said the authorities should have been more prepared for the attacks, and also questioned whether warnings were ignored and the time it took commandos to reach the scenes of the attacks.

Police continued on Sunday to sift through the debris in the Taj hotel.

They are also questioning the one attacker who was captured alive to try to establish who masterminded the assault.

 Map of Mumbai showing location of attacks

November 18, 2008

Woolly rhino’s ancient migration

Woolly rhino’s ancient migration

Woolly rhino spread west into Europe during a cold snap

The 460,000-year-old skull of a woolly rhino, reconstructed from 53 fragments, is the oldest example of these mighty, ice age beasts ever found in Europe.

The extinct mammals reached a length of three-and-a-half meters in adulthood and, unlike their modern relatives, were covered in shaggy hair.

Details of the work appear in the journal Quaternary Science Reviews.

The team says the find from Germany fills a gap in our understanding of how these animals evolved.

First on the scene

“This is the oldest woolly rhinoceros found in Europe,” said Ralf-Dietrich Kahlke, from the Senckenberg Research Institute in Weimar, Germany.

He added: “It gives us a precise date for the first appearance of cold-climate animals spreading throughout Asia and Europe during the ice ages.”

Ralf-Dietrich Kahlke (l) and Frederic Lacombat (r) examine the skull

The skull was pieced together from 53 fragments

The skull was discovered around 1900, in a gravel pit at the foot of the Kyffhauser mountain range near the city of Bad Frankenhausen.

The 53 fragments were only recently put together by Dr Kahlke and his colleague Frederic Lacombat, from the Crozatier Museum in Puy-en-Velay, France.

After examining the reconstructed cranium, they assigned the specimen to Coelodonta tologoijensis, an Asian woolly rhino species that had not previously been described in Europe.

Woolly rhino (Coelodonta) first appeared about 2.5 million years ago in the northern foothills of the Himalayas.

And for much of their evolutionary existence, these mammals were confined to steppe environments in continental Asia.

The key was their diet, which started off being rather mixed – including the leaves of shrubs and trees.

But as conditions became increasingly arid, the woolly rhino evolved into a specialist in browsing for steppe food that grew nearer to the ground.

Coelodonta skull from Bad Frankenhausen, Germany

Changes in the animals’ anatomy enabled them to tolerate cold, arid conditions

The animals probably migrated from Asia into East and Central Europe when cold, arid conditions held sway between 478,000 and 424,000 years ago.

Their territorial advances were paralleled by changes in anatomy.

“Analysis of the Frankenhausen specimen shows that Coelodonta tologoijensis… carried its head low along the ground and had a lawnmower-like mouth with a huge set of grinding teeth,” said Mr Lacombat.

“As the climate became colder, these animals became more efficient at utilising the available food.”

The researchers propose that the species represented at Bad Frankenhausen, C. tologoijensis, was ancestral to the “true” woolly rhino, C. antiquitatis, which was common across Eurasia during ice ages.

November 12, 2008

Was Armistice flawed?

Was Armistice flawed?

The armistice deal signed on 11 November 1918 brought yearned-for relief to Western Europe. But the same pact has been blamed for the return to conflict in Europe only 20 years later. Does the deal deserve the criticism, asks Professor Gerard De Groot of the University of St Andrews.

Armistice celebrations in Britain

The Armistice ended four years of fierce fighting

On 27 September 1918, the British Army, reinforced by French, Belgian and Canadian units, attacked the German line in Flanders, Belgium.

Progress was not immediately impressive, but that operation did achieve the symbolically important result of piercing the Hindenburg Line, which was supposed to be impregnable.

For Erich Ludendorff, the German commander, the jig was up. On 1 October, he told his general staff that “final defeat was probably inescapably at hand”. The task now was to avoid ignominious defeat.

The Germans therefore notified US President Woodrow Wilson on 6 October that they were willing to discuss an armistice.

They approached Mr Wilson because they hoped to get a good deal from a leader who seemed humane.

That immediately aroused the suspicions of British Prime Minister David Lloyd George and French President Georges Clemenceau, both of whom were determined to make Germany pay for the suffering the war had caused.

‘Harsh peace’

Keen to get a jump on President Wilson, Mr Clemenceau asked the Supreme Allied Commander Ferdinand Foch to draw up armistice terms.

You wish to do justice to the Germans. Do not believe they will ever forgive us; they will merely seek the opportunity for revenge
Georges Clemenceau
French President

Mr Foch concocted a set of demands designed to render it impossible for the Germans to resume hostilities.

All captured territory, including German speaking areas of Alsace and Lorraine, would be immediately surrendered. Within four weeks, the Germans would be required to evacuate the right bank of the Rhine to a depth of 10km (six miles), a demand cleverly calculated to leave German units in a disorganized state.

In addition, a vast collection of military hardware (including 5,000 artillery pieces, 25,000 machine guns and 1,700 aircraft) were to be surrendered, plus 5,000 locomotives, 150,000 railway cars and 5,000 lorries.

At sea, Germany would be reduced to a second-rate naval power, surrendering all her submarines and the bulk of her surface fleet.

By the end of October, the British and French had managed to drag the Americans toward their version of reality.

The three powers settled upon terms roughly similar to Mr Foch’s.

In a series of notes, Mr Wilson warned the Germans to expect a harsh peace.

They were to consider themselves militarily defeated, and safeguards would be implemented to insure that hostilities could not be resumed. They should also expect to pay reparations for the costs of the war.

President Wilson further insisted that he would deal only with the elected representatives of the German people, not with the Kaiser.

‘No hope’

For Mr Ludendorff, this amounted to unconditional surrender and was therefore unacceptable.

Allied Supreme Commander  Ferdinand Foch (first row, 2nd right) and other signatories of the Armistice treaty in Compiegne Forest on 11 1918

The Armistice was signed in a railway carriage outside Compiegne Forest

In consequence, he demanded that the German government back away from the armistice.

His sidekick, General Paul von Hindenburg, likewise attested: “Wilson’s answer can only amount to a challenge to continue to resist to the utmost of our capabilities”.

But that rallying cry was shouted into a vacuum.

The German state was in terminal meltdown. Once the possibility of an armistice was raised, there was no further hope of rousing the people to continue the fight.

On 8 November, therefore, a German delegation – headed by Matthias Erzberger – met Mr Foch in a railway carriage outside Compiegne.

The terms sent Mr Erzberger into a state of near paralysis. He nevertheless accepted, and it was agreed that the armistice would take effect at 1100 on 11 November.

Not punished enough?

The armistice terms, and the Versailles settlement that confirmed them, have been blamed for causing World War II.

It is difficult to imagine an armistice that would have satisfied the Entente powers and left the Germans feeling fairly treated

Because we know that WWII occurred, it is easy to judge in retrospect that the armistice must have been too harsh.

This harshness had dual effect: it encouraged a desire for revenge within Germany and a feeling of contrition within Britain. Thus, when the time came that Germany felt able to reassert herself, the British were disinclined to protest because, for many, its anger seemed warranted.

Another school holds that Germany was not punished enough. According to this thesis, the war ended too soon – Germany’s offer of an armistice should have been refused and its army should have been pushed back across the Rhine in order to give the German people graphic proof of their own defeat.

Those who adhere to this thesis often also argue that the treaty established the principle of war guilt, which encouraged German resentment, but did not sufficiently destroy the German ability to act upon that resentment.

Bearing in mind the way Adolf Hitler manipulated the propaganda value of the “unjust” peace, the argument seems to have some merit.

US ‘isolationism’

But punishment, be it of nations or children, is a blunt tool.

Could Germany’s aggressive power realistically have been destroyed in 1919? And, if that option was indeed possible, would the allies have been prepared to make the sacrifices necessary to realize it?

Allied troops huddle in a trench around a tiny fire near Ypres, Belgium, in 1914

More than 40 million people – soldiers and civilians – died in World War I

Which country would have been prepared to forfeit the lives of its citizens in order to make victory more emphatic and peace more severe?

A “fairer” peace seems likewise inconceivable.

“You wish to do justice to the Germans,” Mr Clemenceau once remarked to Mr Wilson. “Do not believe they will ever forgive us; they will merely seek the opportunity for revenge.”

Mr Clemenceau was probably right.

It is difficult to imagine an armistice that would have satisfied the Entente powers and left the Germans feeling fairly treated.

A more liberal treaty might have brought into being a more peaceful, secure Europe, but the populist mood across Europe was not liberal. Equanimity is easy in hindsight, but difficult at a time when the graves of millions were still being dug.

The flaws in the armistice did not alone cause WWII. Germany was able to act upon its resentment because the country that emerged most powerful from the Great War decided subsequently to absent herself from European affairs.

Power implies responsibility, yet the US, in the inter-war period, sought an isolationist haven.

It is by no means clear that greater American involvement in European affairs would have prevented WWII. But it is certain that America’s decision to turn her back on Europe created a power vacuum that Hitler was able to exploit.

October 3, 2008

House set for fresh bail-out vote

House set for fresh bail-out vote

Pedestrians outside the New York Stock Exchange on Wall St (02/10/2008)

President Bush has said the bill is the best chance of rescuing the economy

The US House of Representatives is preparing to vote on a $700bn (£380bn) plan to rescue the US financial sector.

Party leaders are hoping the House, which stunned global markets by rejecting the initial plan, will follow the Senate and back a new version.

The House began debating the deal on Friday morning and is expected to vote later in the day.

The Senate bill added about $100bn in new tax breaks in the hope of gaining more support from House Republicans.

The New York stock exchange opened shortly after the debate began and the Dow Jones Industrial Average jumped more than 100 points in early trading.

But earlier in Japan, shares fell to a three-year low. The Nikkei index closed down more than 1.9%, its lowest level since May 2005.

In Europe, shares were relatively flat. In early afternoon trading the UK’s FTSE 100 was down just 18 points, France’s Cac 40 was down nine and Germany’s Dax up seven.

The financial volatility continued on Friday as US bank Wells Fargo announced it would buy troubled rival Wachovia in a $15.1bn (£8.5bn) deal.

The US also reported its biggest monthly job loss in more than five years.

Bush plea

In Washington, House Speaker Nancy Pelosi, a Democrat, has said no vote will be scheduled until the party feels it will pass.

NEW MEASURES IN BAIL-OUT BILL
Increased protection for saving deposits
Increased child tax credits
More aid for hurricane victims
Tax breaks for renewable energy
Higher starting limits to alternative minimum tax

“We’re not going to take a bill to the floor that doesn’t have the votes. I’m optimistic that we will take a bill to the floor,” she said.

When the House first rejected the plan on Monday – by 228 votes to 205 – legislators had concerns about both the content of the plan and the speed with which they were being asked to pass it.

President George W Bush has since urged the House to back his revised bill.

The package is aimed at buying up the bad debts of failing institutions on Wall Street.

Both the Democratic and Republican parties are pressing their members in the House to swing behind the revised bill and party leaders expect it to pass.

This thing, this issue, has gone way beyond New York and Wall Street
President George W Bush

Some members have called for more amendments, which opens up the prospect of further horse-trading up to the point at which votes are cast.

Pressure will particularly be applied to the 133 House Republicans who went against party affiliation to reject President Bush’s bill, correspondents say.

Tennessee Republican Zach Wamp, one of those who voted against the bill on Monday, said he would now vote in favor of the measure despite ordinary Americans remaining “as mad as heck” at the situation on Wall Street.

“You have got to do what you think is right. I thought the right thing Monday was to vote no. And I think the right thing to do tomorrow is to vote yes.”

The bill successfully passed through the Senate on Wednesday after it was amended to raise the government’s guarantee on savings from $100,000 to $250,000.

It also now includes tax breaks to help small businesses, expand the child tax credit and extend help to victims of recent hurricanes.

Most importantly, it extends the tax break aimed at boosting the provision of alternative energy such as wind farms.

It also includes a number of so-called “pork-barrel” measures including tax cuts for rum manufacturers in Puerto Rico and the owners of racetracks.

The additional cost of these unrelated tax breaks – which could add $100bn to the bill – have worried some fiscally conservative Democrats in the House of Representatives.

October 2, 2008

US markets wary over rescue deal

US markets wary over rescue deal

Wall Street trader

The markets remain nervous

US shares have fallen sharply with investors cautious over whether the House of Representatives will back the revised bank rescue plan.

The House is due to discuss the scheme later, with a vote expected on Friday. The bill successfully passed through the US Senate on Wednesday.

On Wall Street, the Dow Jones index was down 263 points or 2.4% at 10,571, a slide dragging European shares lower.

The falls came as France said it would host a summit on the financial crisis.

The UK’s FTSE 100 closed was down 1.8% to 4,870.3 points while Germany’s Dax index shed 2.5% and France’s Cac 40 lost 2.3%.

Sentiment was further hit by glum economic data – showing that the number of people filing for new unemployment benefit claims rose to a seven-year high, while factory orders had seen a steeper-than-expected drop in August.

European talks

The office of French President Nicolas Sarkozy said the special meeting on Saturday would discuss a co-ordinated response to the financial turmoil amongst European members of the G8 ahead of a meeting of world finance leaders in Washington next week.

UK Prime Minister Gordon Brown is due to attend, together with German Chancellor Angela Merkel, Italian Prime Minister Silvio Berlusconi and European Central Bank President Jean-Claude Trichet.

Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy
Aric Au, Phillip Securities

But with just two days to go before the talks start, EU members are deeply divided, correspondent said.

France and Holland favor a European response to help banks hit by the credit crisis while Germany and Luxembourg believe a joint rescue plan is not necessary.

European leaders have denied speculation that they wanted to establish a unified 300bn euro ($418.4bn; £236bn) banking rescue deal along the same lines as the US plan.

The rescue idea was said to be being proposed by France, but Mr Sarkozy insisted that there were no such plans.

“I deny both the amount and the principle [of such a plan],” he said.

‘Essential’

In the US, a number of changes had to be made to the $700bn (£380bn) bail-out plan in order to help win approval in the Senate.

These include raising the government’s guarantee on savings from $100,000 to $250,000, tax breaks to help small businesses, expansion of child tax credit, and help for victims of recent hurricanes.

President George W Bush said that the package was “essential to the financial security of every American”.

However, economists said doubts remained about how effective the package would be.

“Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy,” said Aric Au of Phillip Securities in Hong Kong.

McCain and Obama

US presidential hopefuls John McCain and Barack Obama, who both returned from the campaign trail for last night’s Senate debate, voted in favor of the rescue plan.

Senate majority leader Harry Reid, a Democrat, said he was happy with the result and praised both presidential candidates for voting.

“I think it shows that when we work together we can accomplish good things,” he said.

Mitch McConnell, leader of Republican senators, was also in jubilant mood.

“This was a measure that was much needed, to unfreeze the credit markets and get America’s economy working again,” he said.

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